American Century Investments Announces Name Change of Inflation Protection Bond

American Century Investments today announces that Inflation Protection Bond (APOIX) – launched May 31, 2005 – has been renamed Short Duration Inflation Protection Bond. Inflation Protection Bond became a short-duration inflation-protection strategy on Aug. 31, 2011 when its benchmark changed to the Barclays U.S. 1-5 Year Treasury Inflation Protected Securities (TIPS) Index.

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Short Duration Inflation Protection Bond’s shorter duration focus is intended to help mitigate interest rate risk relative to longer duration strategies.

Kansas City, Mo. (PRWEB) November 30, 2012

American Century Investments today announces that Inflation Protection Bond (APOIX) – launched May 31, 2005 – has been renamed Short Duration Inflation Protection Bond. Inflation Protection Bond became a short-duration inflation-protection strategy on Aug. 31, 2011 when its benchmark changed to the Barclays U.S. 1-5 Year Treasury Inflation Protected Securities (TIPS) Index.

The name change also was implemented to better differentiate the shorter duration strategy from American Century’s flagship inflation-protection bond product, Inflation-Adjusted Bond (ACITX), which launched in 1997.

“Short Duration Inflation Protection Bond’s shorter duration focus is intended to help mitigate interest rate risk relative to longer duration strategies,” said Bob Gahagan, senior vice president and senior portfolio manager. In general, shorter duration bond strategies carry less interest rate risk than longer duration strategies. Short Duration Inflation Protection Bond had a 2.3 year average effective duration as of Oct. 31, 2012, compared to Morningstar’s Inflation Protected Bond category average of 6.8 years.

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.

You should consider the fund’s investment objectives, risks, and charges and expenses carefully before you invest. The fund’s prospectus or summary prospectus, which can be obtained at americancentury.com, contains this and other information about the fund, and should be read carefully before investing.

Past performance is no guarantee of future results. Investment return and fund share value will fluctuate and it is possible to lose money by investing in these funds.

The prospectus contains very important information about the characteristics of the underlying security and potential tax implications of owning this fund.

The Barclays U.S. 1-5 Year Treasury Inflation Protected Securities (TIPS) Index measures the performance of inflation-protected public obligations of the U.S. Treasury that have a remaining maturity of less than five years.

Effective duration is a calculation used to approximate the actual, modified duration of a callable bond. It takes into account that future interest rate changes will affect the expected cash flows for a callable bond.

American Century Investment Services, Inc., Distributor

©2012 American Century Proprietary Holdings, Inc.


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