Q&A with Asset Allocation CIO Scott Wittman

CIO Scott Wittman and his team were recently honored for their three-, five- and 10-Year performance at the 2015 Lipper Awards. Learn more about Scott and his investment perspective in this brief Q&A.

How can asset allocation help investors?

Rather than chasing performance, a better long-term strategy may be to position a portfolio allocation for a variety of market conditions by allocating a percentage of assets among a variety of investments. A proper asset allocation mix is based on individual goals, risk tolerance and time frame.

What are the benefits of active management?

Many investors are faced with the classic “active versus passive” management debate when it comes to choosing strategies. In my opinion, active managers are often better able to control risk, especially downside risk, versus passive managers. In a challenging investment climate, featuring slow growth, modest returns and the probability of heightened risks going forward, the ability to realize positive alpha produced by an active manager is quite valuable. Identifying managers with a unique process, attractive risk profile and consistent alpha generation potential is key.

What is one of your favorite quotes and why?

One of my favorite quotes is by the Nobel laureate Nils Bohr, who remarked that “prediction is very difficult, especially if it’s about the future.” From a business perspective, Bohr reminds us that we should not position for a single anticipated outcome but rather prepare for a range of potential financial results.

The opinions expressed are those of Scott Wittman, CFA, CAIA, and are no guarantee of the future performance of any American Century Investments fund. This information is for educational purposes only and is not intended as investment advice.

Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.