Kansas City, Mo. (Vocus) April 14, 2010
Given growing concerns about the potential for future inflation and increased investor demand for non-correlated asset classes, American Century Investments today announced the launch of American Century Strategic Inflation Opportunities Fund. Available in multiple share classes beginning April 30, the new fund relies on a mix of U.S. inflation-indexed securities, commodity-related investments and non-U.S. dollar investments in pursuit of its goal to protect investors’ purchasing power.
“Growing deficits and increased stimulus spending have spawned investor concerns about inflation and its potential impact on the value of their hard-earned dollars,” said Enrique Chang, chief investment officer of American Century Investments. “With our new Strategic Inflation Opportunities fund, we are leveraging the collective expertise of multiple portfolio managers representing various investment strategies in order to create a well-diversified portfolio appropriate for anyone seeking to retain purchasing power.”
The management team includes representatives from the fixed income and quantitative equity disciplines. Senior Portfolio Managers Robert Gahagan and Brian Howell are responsible for the roughly 50 percent of the fund that invests in U.S. fixed income securities, including inflation-indexed securities issued by the U.S. Treasury, U.S. government agencies and corporations. Senior Portfolio Manager William Martin, CFA, oversees the portion of the fund – approximately a 25 percent weighting – that invests in commodity-related investments such as commodity-linked notes and stocks of companies engaged in commodity-oriented businesses.
The remaining approximately 25 percent of the fund is comprised of non-U.S. dollar investments managed by Senior Portfolio Manager John Lovito and Portfolio Manager Federico Garcia Zamora. They have the flexibility to invest in foreign currency instruments, high-quality non-dollar foreign government and corporate debt and non-U.S. inflation-indexed securities issued by foreign governments.
The day-to-day portfolio managers are supported by an expansive of team analysts, Quantitative Equity Chief Investment Officer Scott Wittman and the company’s asset allocation committee.
Strategic Inflation Opportunities’ benchmark is the Barclays Capital U.S. Treasury 1-3 Month Bill Index. The fund seeks to outpace the 3-month T-Bill rate by three percent over a full investment cycle.
The fund is available in the following share classes: investor (no load), institutional, A, C and R shares. The load share pricing is consistent with current structures utilized by American Century equity funds. The investor and R class shares have a minimum initial investment of $2,500, the A and C shares have a $250 minimum and the Institutional class has a $5 million minimum with a lower rate of $3 million for endowments and foundations.
About American Century Investments
American Century Investments is a leading privately-held investment management firm, committed to delivering superior investment performance and building long-term client relationships since 1958. Serving investment professionals, institutions, corporations and individual investors, American Century Investments offers a variety of actively managed investment disciplines through an array of products including mutual funds, institutional separate accounts, commingled trusts and sub-advisory accounts. The company's 1,300 employees serve clients from offices in New York; London; Hong Kong; Mountain View, Calif. and Kansas City, Mo. James E. Stowers Jr. is founder of the company, Jonathan S. Thomas is president and chief executive officer and Enrique Chang is chief investment officer. Through its ownership structure, more than 40 percent of American Century Investments' profits support research to help find cures for genetically-based diseases including cancer, diabetes and dementia.
Visit americancentury.com for current performance information. Past performance is no guarantee of future results. Mutual fund investing involves market risk. Investment return and fund share value will fluctuate and it is possible to lose money by investing. Before investing, carefully consider a fund’s investment objectives, risks, charges and expenses. Call 1-800-345-2021 for a prospectus or summary prospectus (if available) containing this and other information. Read it carefully.
American Century Investment Services, Inc., Distributor
©2010 American Century Proprietary Holdings, Inc.