American Century Investments, the $245 billion investment manager, has hired the portfolio management team responsible for Aberdeen Standard Investments’ total return bond strategy.
The team comprises senior portfolio manager Lynn Chen and portfolio managers Rajat Ahuja, Svetlin Krastev and Michael Waggaman.
The team will manage American Century’s total return bond strategy, utilizing the same methodology they employed at Aberdeen, and they will also assume additional portfolio management responsibilities.
“This investment team has significant experience and has worked together for more than 14 years,” said American Century global fixed income co-chief investment officer Charles Tan.
“Hiring Lynn, Raj, Svetlin and Michael not only allows us to add a strategy that has generated alpha for its clients but also deepens our expertise in developed markets and emerging markets across a variety of sectors and helps us better serve our clients.”
Tan previously managed this team at Aberdeen, where he was head of North American Fixed Income before joining American Century in 2018.
American Century said its total return bond strategy “is an intermediate duration, fixed income strategy that uses a sector and country rotation strategy to invest in a diversified portfolio of investment grade, U.S. dollar (USD) debt securities with the ability to invest up to 40 percent of the portfolio in non-USD government debt securities in developed and emerging economies.”
Chen said: “We use a top-down, macroeconomic-driven approach complemented by bottom-up inputs to invest the strategy.
“The strategy seeks to provide diversified alpha by capitalizing on opportunities around the world in any investment climate.
“We’re honored to be joining American Century, a company that has distinguished itself through its investment management expertise and an operating model that results in a positive impact on society.”
Chen said that American Century’s ownership structure was one of the things that attracted her team to the firm.
She said: “The firm provides a solid platform for the TRB team to leverage resources, and its long-term focus aligns with client needs and should make the strategy more impactful.”
The Aberdeen team joins American Century’s Global Fixed Income discipline which is comprised of 48 investment professionals and is overseen by the firm’s Global Fixed Income co-chief investment officers Charles Tan and John Lovito.
The discipline represents $46 billion in assets under management as of June 30, 2021.