Kansas City is an important financial center in the Midwestern United States, home to many prestigious investment companies. This article selects and introduces the top 5 investment firms in Kansas City that are worth paying attention to in 2023. It focuses on analyzing their business strengths, investment strategies, managing assets, future development trends and other directions. The selected companies include Waddell & Reed, American Century Investments, Scout Investments, Dimensional Fund Advisors and Morningstar Associates. We hope this article can provide useful information for investors to better understand the Kansas City investment market.
Waddell & Reed Funds is a long-established wealth firm headquartered in Overland Park, Kansas
Founded in 1937, Waddell & Reed is one of the oldest and largest asset management companies in Kansas City. It provides comprehensive financial services including investment management, wealth management and retirement planning. As of December 2022, the company managed a total of $46.9 billion in assets. Waddell & Reed focuses on actively managed mutual funds and has a strong track record of outperforming passive index funds. Its flagship Ivy Asset Strategy Fund has delivered a 10-year annualized return of 8.86%. In recent years, Waddell & Reed has been expanding into the independent financial advisor market to drive future AUM growth.
American Century Investments oversees $180 billion and offers a wide range of funds
Founded in 1958, American Century Investments manages over $180 billion in assets for both retail and institutional clients as of September 2022. It offers a variety of actively and passively managed funds across equity, fixed income and alternative strategies. 57% of its assets are from international clients. American Century focuses on delivering alpha for investors through innovation, challenging conventional wisdom and independent thinking. Its Global Growth Fund (TWGGX) has outperformed 98% of peers over the past five years. As a private, independent firm, American Century can make long-term plans without shareholder pressure.
Scout Investments provides customized investment solutions for institutions
Founded in 1982, Scout Investments is an institutional asset manager headquartered in Kansas City, Missouri. As of September 2022, it oversees $35.9 billion in assets for corporate retirement plans, endowments, foundations and other institutional investors. Scout Investments is an active manager running concentrated, high-conviction equity and fixed income portfolios. Its flagship Scout International Fund (UMBWX) has beaten its benchmark index by an annualized 2.7% over the past decade. Scout Investments emphasizes understanding client needs, then developing customized investment solutions aligned to each client’s objectives.
Dimensional Fund Advisors combines academic research insights with practical investing experience
Founded in 1981, Dimensional Fund Advisors oversees $645 billion in AUM as of September 2022. While headquartered in Austin, its US Mutual Funds operations are based out of Overland Park, Kansas. Dimensional Fund Advisors has a unique investment philosophy of applying academic research like the Fama-French Three-Factor Model to portfolio construction techniques. Its funds focus on targeting sources of higher expected returns identified by financial science. Dimensional also emphasizes the importance of diversification, risk control and minimizing trading costs. Eighty percent of Dimensional’s mutual funds have outperformed their peer averages over the past 10 years.
Morningstar Investment Services develops high-quality Managed Portfolios
Morningstar Investment Services, a subsidiary of the leading investment research firm Morningstar, oversees $294 billion in managed portfolios as of June 2022. Based in Kansas City, the investment advisory group manages money for financial advisors, institutions and investors in North America. It focuses on developing high-quality Managed Portfolios that deliver better investor outcomes. Powered by Morningstar’s proprietary research, the portfolios combine strategic asset allocation, tactical positioning and low-cost implementation. Ninety percent of Morningstar’s Managed Portfolios outperformed their tactical category peers over the past 5 years.
In conclusion, Waddell & Reed, American Century, Scout Investments, Dimensional and Morningstar Investment Services stand out as leading investment management firms in Kansas City. They serve both retail and institutional investors, overseeing hundreds of billions in total assets. These firms differentiate themselves through actively managed, disciplined and innovative investment approaches that aim to deliver long-term outperformance for clients.