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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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American Century Emerging Markets Fund 2026 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (American Century Emerging Markets Fund)

Primary Source Intelligence • Q3 2026 Letter Analysis

American Century Emerging Markets Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, American Century Emerging Markets Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD-7.12%

Annualized+6.96%

Positioning StanceCONSTRUCTIVE

Market CapAll Cap

GeographyEmerging markets, Asia, LatAM

Digest Analysis

Quick Take

"Constructive on emerging market equities anchored by structural demographic expansion and Asian semiconductor demand, initiating positions in MediaTek and ASPEED while exiting capital equipment and lithium producers facing capacity headwinds."

Executive Summary

The American Century Emerging Markets Fund delivered a -7.12% net return for its Investor Class in the third quarter of 2026, underperforming the benchmark MSCI Emerging Markets Index return of -0.37%. Performance was challenged by rising bond yields, elevated energy costs, and resurging geopolitical uncertainties that dampened broader risk appetite across developing markets. Overweight positioning and security selection in industrials and information technology detracted from relative performance, while consumer staples holdings provided positive offset. The macroeconomic environment was characterized by an ongoing dispersion of returns, with Asia serving as the primary regional anchor supported by secular demand for artificial intelligence and semiconductors. Beyond the technology sector, the management team highlights that emerging markets are anchored by broad structural tailwinds, including robust population growth, favorable domestic policy support, and higher energy demand following disruptions at the Strait of Hormuz, with easing tensions in Iran potentially offering a constructive backdrop. From a portfolio deployment perspective, the fund expanded its exposure to artificial intelligence infrastructure and edge computing by initiating new positions in MediaTek and ASPEED Technology. Concurrently, the team fully exited NAURA Technology Group due to softening mature-node equipment demand and heavy research spending, and sold out of Ganfeng Lithium Group over concerns that industry supply restarts would undermine pricing recovery. Taiwan Semiconductor Manufacturing remains the fund's largest position at 15.33% of the portfolio.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

68%

CautiousHigh

Moderate (68%)

The portfolio features heavy top-heavy concentration in key global semiconductor champions, with Taiwan Semiconductor representing 15.33% and Samsung Electronics comprising 8.80% of assets. However, broad multi-sector coverage across Chinese financials, consumer staples, and materials softens overall portfolio concentration.

Growth Outlook

62%

BearishBullish

Neutral (62%)

Management emphasizes that improving corporate performance, resilient earnings trends, and potential easing of tensions in Iran provide an attractive backdrop for equity selection. While acknowledging third-quarter valuation volatility and bond yield pressures, their forward thesis remains structurally positive.

Risk Appetite

60%

DefensiveAggressive

Balanced (60%)

Capital remains directed into growth themes such as AI infrastructure and custom silicon via new stakes in MediaTek and ASPEED. Nonetheless, risk appetite is tempered by decisive complete exits from cyclical capital equipment and lithium producers facing capacity gluts.

Capital Deployment

52%

De-riskingDeploying

Net Neutral (52%)

Capital deployment was net neutral during the quarter, with fresh capital committed to new initiations like MediaTek and ASPEED offset by outright liquidations of NAURA and Ganfeng Lithium.

Forward Guidance

58%

CautiousExpansionary

Neutral (58%)

The team demonstrates clear buy and sell discipline by expanding into edge computing and server management while eliminating holdings with deteriorating margin outlooks. Reallocation remains selective rather than broad-based capital accumulation.

Language Signal

58%

BearishBullish

Balanced (58%)

Constructive commentary regarding robust demand, margin expansion, and structural demographic tailwinds is counterbalanced by repeated mentions of geopolitical uncertainty, sanctions, elevated interest rates, and profit-taking.

Perceived Risk

58%

Low RiskElevated

Moderate Risk (58%)

The letter identifies specific macro risks including higher bond yields, energy supply disruptions around the Strait of Hormuz, sanctions, and investor skepticism regarding elevated AI infrastructure capex.

Opportunity Density

62%

ScarceAbundant

Selective (62%)

The team points to a diversified opportunity set extending beyond AI into state-supported Chinese financials, Greek banking, and Latin American raw materials producers. However, deployment remains disciplined and selective amid ongoing macro volatility.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

The strategy maintains an explicitly long-term orientation focused on multi-year demographic expansion, structural domestic policy changes, and secular technological transition. Position decisions reflect multi-year fundamental earnings expectations rather than short-term trading.