ck0000100334-20231031
March
1, 2024
American
Century Investments
Prospectus
Balanced
Fund
Investor
Class (TWBIX)
I
Class (ABINX)
R5
Class (ABGNX)
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The
Securities and Exchange Commission has
not approved or disapproved
these securities or
passed upon the adequacy of this prospectus.
Any
representation to the contrary is a criminal offense. |
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©2024
American Century Proprietary Holdings, Inc. All rights reserved.
The
fund seeks long-term capital growth and current income by investing
approximately 60% of its assets in equity securities and the remainder in bonds
and other fixed-income securities.
The
following table describes the fees and expenses you may pay if you buy, hold and
sell shares of the fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below.
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Shareholder
Fees (fees
paid directly from your investment) |
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| Investor |
I |
R5 |
Maximum
Annual Account Maintenance Fee
(waived if eligible investments total at
least $10,000) |
$25 |
None |
None |
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Annual
Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
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Investor |
I |
R5 |
| Management
Fee |
0.90% |
0.70% |
0.70% |
| Distribution
and Service (12b-1) Fees |
None |
None |
None |
| Other
Expenses |
0.01% |
0.01% |
0.01% |
| Total
Annual Fund Operating Expenses |
0.91% |
0.71% |
0.71% |
Example
The example below is intended to help you compare the costs of
investing in the fund with the costs of investing in other mutual
funds. The example assumes that you invest
$10,000 in the fund for the time periods indicated and then redeem all of your
shares at the end of those periods, that you earn a 5% return each year, and
that the fund’s operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
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1
year |
3
years |
5
years |
10
years |
| Investor
Class |
$93 |
$291 |
$504 |
$1,120 |
| I
Class |
$73 |
$227 |
$396 |
$883 |
| R5
Class |
$73 |
$227 |
$396 |
$883 |
Portfolio
Turnover
The
fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
annual fund operating expenses or in the example, affect the fund’s performance.
During the most recent fiscal year, the fund’s portfolio turnover rate was
72% of the average value of its
portfolio.
For
the equity portion of the fund, the fund will generally invest in large
capitalization companies it believes show sustainable business improvement using
a proprietary multi-factor model that combines fundamental measures of a stock’s
value and growth potential with environmental, social, and governance (ESG)
metrics. The model assigns each security a financial metrics score and an ESG
score that are combined to create an overall score.
To
measure value, the portfolio managers may use ratios of stock price-to-earnings
and stock price-to-cash flow. To measure growth, the managers may use the rate
of growth of a company’s earnings and cash flow and changes in its earnings
estimates. The model also considers price momentum. The team arrives at an ESG
score by evaluating multiple metrics of each ESG characteristic—environmental,
social, and governance. The portfolio managers utilize internal data and
research, as well as third party commercial data sources and scoring systems, to
evaluate each security’s ESG characteristics. To the extent such information is
available and relevant for a particular company, portfolio managers will
consider, among others, a company’s carbon emission profile, energy and water
usage, or waste generation (environmental), a company’s employee turnover rates,
digital privacy, or worker safety (social), and a company’s corporate
leadership, including board chair independence and the independence of audit and
compensation
committees
or shareholder rights such as say on pay (governance). If an ESG score is
unavailable or incomplete, a security may still be selected for the portfolio if
the portfolio managers believe they can evaluate the security qualitatively, or
if the financial metrics and/or remaining ESG data merit investment. Qualitative
review of portfolio securities may include examination of registration
statements and other information provided by the company as well as engagement
with company management.
Final
scores for each security are evaluated on a sector-specific basis, and the fund
seeks to hold securities with the strongest scores in their respective sectors.
Using this process, the portfolio managers attempt to build a portfolio of
stocks that has sustainable competitive advantages, provides better returns
without taking on significant additional risk, and maintains a stronger ESG
profile than the S&P 500®
Index.
For
the fixed-income portion of the fund, the portfolio managers invest in a
diversified portfolio of high- and medium-grade non-money market debt
securities. These securities, which may be payable in U.S. or foreign
currencies, may include corporate bonds and notes, government securities, bank
loans, securities backed by mortgages or other assets and collateralized debt
obligations (including collateralized loan obligations). Shorter-term debt
securities round out the portfolio.
The fund also
may invest in derivative instruments such as options, futures contracts, options
on futures contracts, and swap agreements (including, but not limited to, credit
default swap agreements), or in mortgage- or asset-backed securities, provided
that such investments are in keeping with the fund's investment
objective. The fund may use foreign currency exchange contracts
to shift investment exposure from one currency into another for hedging
purposes.
•Style
Risk —
If at any time the market is not favoring the quantitative investment style used
to manage the fund’s equity portion, that portion’s gains may not be as big as,
or its losses may be bigger than, those of other equity funds using different
investment styles.
•Investment
Process Risk — Stocks
selected by the portfolio managers using quantitative models may perform
differently than expected due to the portfolio managers’ judgments regarding the
factors used in the models, the weight placed on each factor, changes from the
factors’ historical trends, and technical issues with the construction and
implementation of the models (including, for example, data problems and/or
software or other implementation issues). There is no guarantee that the use of
the quantitative models will result in effective investment decisions for the
fund. Additionally, the commonality of portfolio holdings across quantitative
investment managers may amplify losses.
•ESG
Risk —
Because the fund considers ESG metrics in addition to fundamental financial
metrics when selecting securities, its portfolio may perform differently than
funds that do not use ESG metrics. ESG considerations may prioritize long term
rather than short term returns. Furthermore, when analyzing ESG criteria for
securities, the portfolio management team relies on the information and scoring
models published by third party sources, there is a risk that this information
might be incorrect or only take into account one of many ESG related components
of portfolio companies. Moreover, scores and ratings across third party
providers may be inconsistent or incomparable.
•Market
Risk —
The value of the fund’s shares will go up and down based on the performance of
the companies whose securities it owns and other factors generally affecting the
securities market. Market risks, including political, regulatory, economic and
social developments, can affect the value of the fund’s investments. Natural
disasters, public health emergencies, war, terrorism and other unforeseeable
events may lead to increased market volatility and may have adverse long-term
effects on world economies and markets generally.
•Interest
Rate Risk —
Investments in debt securities are sensitive to interest rate changes.
Generally, the value of debt securities and the funds that hold them decline as
interest rates rise. The fund’s fixed-income investments are designed to reduce
this risk. Interest rate risk, however, is generally higher for the fixed-income
portion of the Balanced Fund than for funds that have shorter-weighted
maturities, such as money market funds and short-term bond funds. A period of
rising interest rates may negatively affect the fund’s
performance.
•Credit
Risk
— Debt securities, even investment-grade debt securities, are subject to credit
risk. Credit risk is the risk that the inability or perceived inability of the
issuer to make interest and principal payments will cause the value of the
securities to decrease. As a result the fund’s share price could also decrease.
Changes in the credit rating of a debt security held by the fund could have a
similar effect.
•Prepayment
and Extension Risk
— The fund may invest in debt securities backed by mortgages or other assets. If
these underlying assets are prepaid, the fund may benefit less from declining
interest rates than funds of similar maturity that invest less heavily in
mortgage- and asset-backed securities.
Conversely, an issuer may exercise its right to pay principal on an obligation
held by the fund later than expected (extend the obligation) especially in
periods of rising interest rates. These events may lengthen the maturity and
potentially reduce the value of these securities.
•Foreign
Securities Risk
— Foreign securities have certain unique risks, such as currency risk, social,
political and economic risk, and foreign market and trading risk. Securities of
foreign issuers may be less liquid, more volatile and harder to value than U.S.
securities.
•Bank
Loan Risk —
The market for bank loans may not be highly liquid and the fund may have
difficulty selling them.
Bank loans may not be considered securities, thus the fund may not be afforded
anti-fraud protections available under the federal securities laws.
In connection with purchasing loan participations, the fund generally will have
no right to enforce compliance by borrowers with loan terms nor any set off
rights, and the fund may not benefit directly from any posted collateral. As a
result, the fund may be subject to the credit risk of both the borrower and the
lender selling the participation. Bank loan transactions may take more than
seven days to settle, meaning that proceeds would be unavailable to make
additional investments or meet redemptions.
•Collateralized
Obligations Risk — Collateralized obligations, such as collateralized loan obligations
(CLOs), are subject to credit, interest rate, valuation, and prepayment and
extension risks. These securities also are subject to risk of default on the
underlying asset, particularly during periods of economic downturn. The market
value of collateralized obligations may be affected by, among other things,
changes in the market value of the underlying assets held by the collateralized
obligation, changes in the distributions on the underlying assets, defaults and
recoveries on the underlying assets, capital gains and losses on the underlying
assets, prepayments on underlying assets and the availability, and prices and
interest rates of underlying assets. Lower rated tranches of such debt are
subject to a higher risk of total loss and deferral or nonpayment of interest
than the more senior tranches to which they are subordinated. Some of the
collateralized obligations in which the fund invests may be covenant-lite loans.
Covenant-lite loans contain fewer or less restrictive constraints on the
borrower. The fund may have fewer rights against a borrower and an accompanying
greater risk of loss when it invests in covenant-lite loans.
•Derivative
Risk
— The use of derivative instruments involves risks different from, or possibly
greater than, the risks associated with investing directly in securities and
other traditional instruments. Derivatives are subject to a number of risks,
including liquidity, interest rate, market, credit and correlation risk.
Derivatives
used for hedging or risk management may not operate as intended, may expose the
fund to other risks, and may be insufficient to protect the fund from the risks
they were intended to hedge.
•Liquidity
Risk
— The fund may also be subject to liquidity risk. During periods of market
turbulence or unusually low trading activity, in order to meet redemptions it
may be necessary for the fund to sell securities at prices that could have an
adverse effect on the fund’s share price. Changing regulatory and market
conditions, including increases in interest rates and credit spreads may
adversely affect the liquidity of the fund’s
investments.
•Price
Volatility Risk —
The value of the fund’s shares may fluctuate significantly in the short
term.
•Principal
Loss Risk —
At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the
fund.
An investment in
the fund is not a bank deposit, and it is not insured or guaranteed by the
Federal Deposit Insurance Corporation (FDIC) or any other government
agency.
The following
bar chart and table provide some indication of the risks of investing in the
fund. The bar chart shows changes in the fund’s performance from year to year
for Investor Class shares. The table shows how the fund’s average annual returns
for the periods shown compared with those of a broad measure of market
performance. The fund’s past performance
(before and after taxes) is not necessarily an indication of how the fund will
perform in the future. For current performance information,
please visit americancentury.com.
The
blended index is considered the benchmark for the fund. It combines two widely
known indices in proportion to the asset mix of the fund. Accordingly, 60% of
the index is represented by the S&P 500 Index, which reflects the
approximately 60% of the fund’s assets invested in stocks. The blended index’s
remaining 40% is represented by the Bloomberg U.S. Aggregate Bond Index, which
reflects the roughly 40% of the fund’s assets invested in fixed-income
securities.
Sales charges and account fees, if
applicable, are not reflected in the bar chart. If those charges were included,
returns would be less than those
shown.
Calendar Year Total
Returns
Highest Performance
Quarter (2Q
2020): 13.21% Lowest Performance Quarter
(2Q 2022):
-12.34%
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Average
Annual Total Returns
For
the calendar year ended December 31, 2023 |
1
year |
5
years |
10
years |
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Investor
Class
Return Before Taxes |
16.18% |
8.46% |
6.51% |
| Return After
Taxes on Distributions |
15.52% |
6.42% |
4.63% |
| Return After
Taxes on Distributions and Sale of Fund Shares |
9.73% |
6.23% |
4.68% |
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I
Class
Return Before Taxes |
16.40% |
8.67% |
6.72% |
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R5
Class1
Return
Before Taxes |
16.41% |
8.66% |
6.72% |
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S&P
500®
Index
(reflects no deduction for
fees, expenses or taxes) |
26.29% |
15.69% |
12.03% |
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Bloomberg
U.S. Aggregate Bond Index
(reflects no deduction for
fees, expenses or taxes) |
5.53% |
1.10% |
1.81% |
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Blended
Index
(reflects no deduction for
fees, expenses or taxes) |
17.67% |
9.98% |
8.09% |
1
Historical
performance for the R5 Class prior to its inception (April 10,
2017) is based on the performance of I Class shares, which have the same
expenses as the R5 Class.
The
after-tax returns are shown only for Investor Class shares. After-tax returns
for other share classes will vary. After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and local
taxes. Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. After-tax
returns are not relevant to investors who hold their fund shares through
tax-deferred arrangements, such as 401(k) plans or
IRAs.
Investment
Advisor
American
Century Investment Management, Inc.
Portfolio
Managers
Charles
Tan,
Senior Vice President and Co-Chief Investment Officer, Global Fixed Income, has
served on teams managing fixed-income investments since joining the advisor in
2018.
Robert
V. Gahagan,
Senior Vice President and Senior Portfolio Manager, has served on teams managing
fixed-income investments for American Century since joining the advisor in
1983.
Jason
Greenblath,
Vice President and Senior Portfolio Manager, has served on teams managing
fixed-income investments since joining the advisor in 2019.
Joseph
Reiland,
CFA, Vice President and Senior Portfolio Manager, has been a member of the team
that manages the fund since 2021.
Justin
M. Brown,
CFA, Vice President and Portfolio Manager, has been a member of the team that
manages the fund since 2021.
Robert
J. Bove,
Portfolio
Manager, has been a member of the team that manages the fund since
2021.
You
may purchase or redeem shares of the fund on any business day through our
website at americancentury.com, in person (at one of our Investor Centers), by
mail (American Century Investments, P.O. Box 419200, Kansas City, MO
64141-6200), by telephone at 1-800-345-2021 (Investor Services Representative)
or 1-800-345-3533 (Business, Not-For-Profit and Employer-Sponsored Retirement
Plans), or through a financial intermediary. Shares may be purchased and
redemption proceeds received by electronic bank transfer, by check or by
wire.
Unless
otherwise specified below, the minimum initial investment amount to open an
account is $2,500 ($1,000 for Coverdell Education Savings Accounts and IRAs).
However, American Century Investments will waive the fund minimum if you make an
initial investment of at least $500 and continue to make automatic investments
of at least $100 a month until reaching the fund minimum. Investors opening
accounts through financial intermediaries may open an account with $250 for
Investor Class, but the financial intermediaries may require their clients to
meet different investment minimums. The minimum may be waived for broker-dealer
sponsored wrap program accounts, fee based accounts, and accounts through
bank/trust and wealth management advisory organizations.
The
minimum initial investment amount for the I Class is generally $5 million ($3
million for endowments and foundations), but the minimum may be waived if you
have an aggregate investment in the American Century family of funds of $10
million or more ($5 million for endowment and foundations). This includes
accounts held directly with American Century and those held through a financial
intermediary.
There
is no minimum initial investment amount for R5 Class shares.
For
the Investor and R5 Classes, there is no minimum initial investment amount for
certain employer-sponsored retirement plans, however, financial intermediaries
or plan recordkeepers may require plans to meet different
minimums. Employer-sponsored retirement plans are not eligible to invest in
I Class.
There
is a $50 minimum for subsequent purchases, except that there is no subsequent
purchase minimum for financial intermediaries or employer-sponsored retirement
plans.
Fund
distributions are generally taxable as ordinary income or capital gains, unless
you are investing through a tax-deferred account such as a 401(k) or individual
retirement account (in which case you may be taxed upon withdrawal of your
investment from such account).
If
you purchase the fund through a broker-dealer or other financial intermediary
(such as a bank, insurance company, plan sponsor or financial professional), the
fund and its related companies may pay the intermediary for the sale of fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
What
is the fund’s investment objective?
This
fund seeks long-term capital growth and current income by investing
approximately 60% of its assets in equity securities and the remainder in bonds
and other fixed-income securities.
What
are the fund’s principal investment strategies?
For
the equity portion of the fund’s portfolio, the fund generally will invest in
large capitalization companies, but may invest in companies of any
capitalization. The fund’s equity investment strategy utilizes a proprietary
multi-factor model in a three-step process. In the first step, the portfolio
managers rank stocks from most attractive to least attractive. This is
determined by using a quantitative model that combines fundamental measures of a
stock’s value and growth potential and environmental, social, and governance
(ESG) metrics. To measure value, the managers may use ratios of stock
price-to-earnings and stock price-to-cash flow, among others. To measure growth,
the managers may use the rate of growth of a company’s earnings and cash flow
and changes in its earnings estimates, as well as other factors. The model also
considers price momentum. The team arrives at an ESG score by evaluating
multiple metrics of each ESG characteristic—environmental, social, and
governance. The portfolio managers utilize internal data and research, as well
as third party commercial data sources and scoring systems, to evaluate each
security’s ESG characteristics. To the extent such information is available and
relevant for a particular company, portfolio managers will consider, among
others, a company’s carbon emission profile, energy and water usage, or waste
generation (environmental), a company’s employee turnover rates, digital privacy
or worker safety (social), and a company’s corporate leadership, including board
chair independence and the independence of audit and compensation committees or
shareholder rights on such as say on pay (governance). If an ESG score is
unavailable or incomplete, a security may still be selected for the portfolio if
the portfolio managers believe they can evaluate the security qualitatively, or
if the financial metrics and remaining ESG data merit investment. The financial
metrics score and/or ESG score are combined on an equal basis to create an
overall score. Qualitative review of portfolio securities may include
examination of registration statements and other information provided by the
company as well as engagement with company management.
In
the second step, final scores for each security are evaluated on a
sector-specific basis, and the fund seeks to hold securities with the strongest
scores in their respective sectors. The portfolio managers build an equity
portfolio of stocks from the ranking described above that they believe will
provide the optimal balance between risk and expected return. Using this
process, the portfolio managers attempt to build a portfolio of stocks that has
sustainable competitive advantages, provides better returns without taking on
significant additional risk, and maintains a stronger ESG profile than the
S&P 500® Index.
Finally,
the portfolio managers validate the output of the multi-factor model using
additional fundamental analysis.
Although
the portfolio managers intend to invest the fund’s equity assets primarily in
U.S. securities, the fund may invest in securities of foreign companies when
these securities meet the portfolio managers’ standards of
selection.
The
fixed-income portion of the fund’s portfolio is invested primarily in a
diversified portfolio of high- and medium-grade non-money market debt
securities. These securities, which may be payable in U.S. or foreign
currencies, may include corporate bonds and notes, government securities, bank
loans, securities backed by mortgages or other assets and collateralized debt
obligations (including collateralized loan obligations). Shorter-term debt
securities round out the portfolio. Most of the fixed-income assets will be
invested in securities that are rated within the four highest categories by a
nationally recognized statistical rating organization. The rating category of a
security will be determined at the time of purchase. In the event a security is
subsequently downgraded, the fund will not be obligated to dispose of that
security, but may continue to hold the security if deemed appropriate by the
portfolio managers. Under normal market conditions, the weighted
average maturity
for the fixed-income portfolio will be three and one-half years or
longer.
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Weighted
average maturity
is
a tool the portfolio managers use to approximate the remaining term to
maturity of a fund’s investment portfolio. Generally, the longer a fund’s
weighted average maturity, the more sensitive it is to changes in interest
rates. |
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The
portfolio managers do not attempt to time the market. Instead, under normal
market conditions, they intend to keep the equity portion of the fund mostly
invested in equity securities regardless of the movement of stock prices
generally.
In
the event of adverse
market, economic,
political, or other conditions,
the fund may take temporary defensive positions that are inconsistent with the
fund’s principal investment strategies. To the extent the fund assumes a
defensive position, it may not achieve its investment objective.
The
fixed-income portfolio managers decide which debt securities to buy and sell by,
among other things:
•identifying
debt securities that satisfy the fund’s credit quality standards;
•determining
which debt securities help the fund meet its maturity requirements;
•assessing
current and anticipated interest rates;
•evaluating
current economic conditions and the risk of inflation; and
•evaluating
special features of the debt securities that may make them more or less
attractive to alternatives.
The
fund may invest in securities issued or guaranteed by the U.S. Treasury and
certain U.S. government agencies or instrumentalities such as the Government
National Mortgage Association (Ginnie Mae). Ginnie Mae is supported by the full
faith and credit of the U.S. government. Securities issued or guaranteed by
other U.S. government agencies or instrumentalities, such as the Federal
National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage
Corporation (Freddie Mac), and the Federal Home Loan Bank (FHLB) are not
guaranteed by the U.S. Treasury or supported by the full faith and credit of the
U.S. government. However, they are authorized to borrow from the U.S. Treasury
to meet their obligations.
The
fund also may invest in derivative instruments such as options, futures
contracts, options on futures contracts, and swap agreements (including, but not
limited to, credit default swap agreements), or in mortgage- or asset-backed
securities, provided that such investments are in keeping with the fund’s
investment objective. The fund may use foreign currency exchange contracts
to shift investment exposure from one currency into another for hedging
purposes.
A
description of the policies and procedures with respect to the disclosure of the
fund’s portfolio securities is available in the statement of additional
information.
What
are the principal risks of investing in the fund?
Market
performance tends to be cyclical, and, in the various cycles, certain investment
styles may fall in and out of favor. If the market is not favoring the
quantitative style used by the fund’s equity portion, that portion’s gains may
not be as big as, or its losses may be bigger than, those of other equity funds
using different investment styles.
Because
the fund’s equity portion considers ESG metrics in addition to fundamental
financial metrics when selecting securities, its portfolio may perform
differently than funds that do not use ESG metrics. ESG considerations may
prioritize long term rather than short term returns. Furthermore, when analyzing
ESG criteria for securities, the portfolio management team relies on the
information and scoring models published by third party sources, there is a risk
that this information might be incorrect or only take into account one of many
ESG related components of portfolio companies. Moreover, scores and ratings
across third party providers may be inconsistent or incomparable.
Although
the portfolio managers intend to invest the fund’s equity assets primarily in
U.S. securities, the fund may invest in securities of foreign companies. Foreign
investment involves additional risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting and
regulatory practices similar to those that apply in the United States. These
factors make investing in foreign securities generally riskier than investing in
U.S. securities. Securities of foreign issuers may be less liquid, more volatile
and harder to value than U.S. securities. To the extent the fund invests in
foreign securities, the overall risk of the fund could be affected.
The
value of the fund’s shares depends on the value of the stocks, bonds and other
securities it owns.
•The
value of the individual equity securities the fund owns will go up and down
depending on the performance of the companies that issued them, general market
and economic conditions, and investor confidence.
•The
value of the fund’s fixed-income securities will be affected primarily by rising
or falling interest rates and the continued ability of the issuers of these
securities to make payments of interest and principal as they become
due.
When
interest rates change, the fund’s share value will be affected. Generally, when
interest rates rise, the value of the fund’s fixed-income securities will
decline. The opposite is true when interest rates decline. The degree to which
interest rate changes affect the fund’s performance varies and is related to the
weighted average maturity of the fixed-income portion of the fund. For example,
when interest rates rise, you can expect the share value of a long-term bond
fund to fall more than a short-term bond fund. When rates fall, the opposite is
true. The fund’s fixed-income investments are designed to reduce this risk.
Interest rate risk, however, is generally higher for the fixed-income portion of
Balanced than for funds that have shorter-weighted average maturities, such as
money market and short-term bond funds. A period of rising interest rates
may negatively affect the fund’s performance.
Most
of the securities purchased by the fixed-income portion of the fund are
investment-grade debt securities at the time of purchase.
Debt
securities, even investment-grade debt securities, are subject to credit risk.
Credit risk is the risk that the inability or perceived inability of the issuer
to make interest and principal payments will cause the value of the securities
to decrease. As a result the value of the fund’s fixed-income securities could
also decrease. A high credit rating indicates a high degree of confidence by the
rating organization that the issuer will be able to withstand adverse business,
financial or economic conditions and make interest and principal payments on
time. A lower credit rating indicates a greater risk of non-payment. Changes in
the credit rating of a debt security held by the fund could have a similar
effect. The fund’s credit quality restrictions apply at the time of purchase;
the fund will not necessarily sell securities if they are downgraded by a rating
agency.
The
fund may invest in debt securities backed by mortgages or assets such as auto
loan, home equity loan or student loan receivables. These underlying obligations
may be prepaid, as when a homeowner refinances a mortgage to take advantage of
declining interest rates. If so, the fund must reinvest prepayments at current
rates, which may be less than the rate of the prepaid mortgage. Because of this
prepayment risk, the fund may benefit less from declining interest rates than
funds of similar maturity that invest less heavily in mortgage- and asset-backed
securities. Conversely, an issuer may exercise its right to pay principal
on an obligation held by the fund later than expected (extend the obligation)
especially in periods of rising interest rates. These events may lengthen the
maturity and potentially reduce the value of these securities.
The
fund may invest in the securities of foreign companies. Foreign securities can
have certain unique risks, including fluctuations in currency exchange rates,
unstable social, political and economic structures, reduced availability of
public information, and the lack of uniform financial reporting and regulatory
practices similar to those that apply to U.S. issuers. These factors make
investing in foreign securities generally riskier than investing in U.S.
securities. Securities of foreign issuers may be less liquid, more volatile and
harder to value than U.S. securities. To the extent the fund invests in foreign
securities, the overall risk of the fund could be affected.
The
use of derivative instruments involves risks different from, or possibly greater
than, the risks associated with investing directly in securities and other
traditional instruments. Derivatives are subject to a number of risks, including
liquidity, interest rate, market, and credit risk. They also involve the risk of
mispricing or improper valuation, the risk that changes in the value of the
derivative may not correlate perfectly with the underlying asset, rate or index,
and the risk of default or bankruptcy of the other party to the instrument.
Gains or losses involving some futures, options, and other derivatives may be
substantial—in part because a relatively small price movement in these
securities may result in an immediate and substantial gain or loss for the fund.
Derivatives
used for hedging or risk management may not operate as intended, may expose the
fund to other risks, and may be insufficient to protect the fund from the risks
they were intended to hedge.
Investments
in bank loans, loans made by banks or other financial intermediaries to
borrowers, require the fund to depend primarily upon the creditworthiness of the
borrower for payment of principal and interest, exposing the fund to the credit
risk of both the financial institution and the underlying borrower. The market
for bank loans may not be highly liquid and the fund may have difficulty selling
them. In connection with purchasing participations, the fund generally will have
no right to enforce compliance by the borrower with the terms of the loan
agreement, nor any rights with respect to any funds acquired by other lenders
through set-off against the borrower, and the fund may not directly benefit from
any collateral supporting the loan in which it has purchased the articipation.
In addition, transactions in bank loans may take more than seven days to settle.
As a result, the proceeds from the sale of bank loans may not be readily
available to make additional investments or to meet the fund’s redemption
obligations. Some bank loan interests may not be considered
securities or
registered
under the Securities Act of 1933 and therefore not afforded the protections of
the federal securities laws.
The
risks of an investment in a collateralized debt obligation depend largely on the
type of the collateral securities and the class of the debt obligation in which
the fund invests. Collateralized debt obligations (CDOs) and collateralized loan
obligations (CLOs) are subject to credit, interest rate, valuation, prepayment
and extension risks. These securities also are subject to risk of default on the
underlying asset, particularly during periods of economic downturn. The market
value of CLO securities may be affected by, among other things, changes in the
market value of the underlying assets held by the CLO, changes in the
distributions on the underlying assets, defaults and recoveries on the
underlying assets, capital gains and losses on the underlying assets,
prepayments on underlying assets and the availability, and prices and interest
rates of underlying assets.
Lower rated tranches of such debt are subject to a higher risk of total loss and
deferral or nonpayment of interest than the more senior tranches to which they
are subordinated. Some of the collateralized obligations in which the fund
invests may be covenant-lite loans. Covenant-lite loans contain fewer or less
restrictive constraints on the borrower. Generally, the lender is not allowed to
monitor the borrower's performance, declare default, or force borrowers into
bankruptcy. In this type of loan, lenders rely on restrictive covenants to
prevent a company from engaging in specified actions such as taking on
additional debt. Generally, such covenants are precipitated only by an
affirmative breach by the borrower, as opposed to a decline in the borrower's
financial condition. Thus, the fund may have fewer rights against a borrower and
an accompanying greater risk of loss when it invests in covenant-lite loans.
The
fund may also be subject to liquidity risk. The chance that a fund will have
difficulty selling its debt securities is called liquidity risk. During periods
of market turbulence or unusually low trading activity, to meet redemptions it
may be necessary for the fund to sell securities at prices that could have an
adverse effect on the fund’s share price. Changing regulatory and market
conditions, including increases in interest rates and credit spreads may
adversely affect the liquidity of the fund’s investments.
The
fund may need to sell securities at times it would not otherwise do so in order
to meet shareholder redemption requests. The fund could experience a loss when
selling securities, particularly if the redemption requests are unusually large
or frequent, occur in times of overall market turmoil or declining pricing for
the securities sold or when the securities the fund wishes to sell are illiquid.
Selling securities to meet such redemption requests also may increase
transaction costs or have tax consequences. To the extent that a large
shareholder (including a fund of funds or 529 college savings plan) invests in
the fund, the fund may experience relatively large redemptions as such
shareholder reallocates its assets. Although the advisor seeks to minimize the
impact of such transactions where possible, the fund’s performance may be
adversely affected.
The
value of the fund’s shares may fluctuate significantly in the short term. Market
risks, including political, regulatory, economic and social developments, can
affect the value of the fund’s investments. Natural disasters, public health
emergencies, war, terrorism and other unforeseeable events may lead to increased
market volatility and may have adverse long-term effects on world economies and
markets generally.
At
any given time your shares may be worth less than the price you paid for them.
In other words, it is possible to lose money by investing in the
fund.
Who
manages the fund?
The
Board of Directors, investment advisor and fund management teams play key roles
in the management of the fund.
The
Board of Directors
The
Board of Directors is responsible for overseeing the advisor’s management and
operations of the fund pursuant to the management agreement. In performing their
duties, Board members receive detailed information about the fund and its
advisor regularly throughout the year, and meet at least quarterly with
management of the advisor to review reports about fund operations. The
directors’ role is to provide oversight and not to provide day-to-day
management. More than three-fourths of the directors are independent of the
fund’s advisor. They are not employees, directors or officers of, and have no
financial interest in, the advisor or any of its affiliated companies (other
than as shareholders of American Century Investments funds), and they do not
have any other affiliations, positions or relationships that would cause them to
be considered “interested persons” under the Investment Company Act of
1940.
The
Investment Advisor
The
fund’s investment advisor is American Century Investment Management, Inc. (the
advisor). The advisor has been managing mutual funds since 1958 and is
headquartered at 4500 Main Street, Kansas City, Missouri
64111.
The
advisor is responsible for managing the investment portfolios of the fund and
directing the purchase and sale of their investment securities. The advisor also
arranges for transfer agency, custody and all other services necessary for the
fund to operate.
For
the services it provides to the fund, the advisor receives a unified management
fee based on a percentage of the daily net assets of each class of shares of the
fund. The amount of the fee is calculated daily and paid monthly in arrears. Out
of that fee, the advisor pays all expenses of managing and operating that fund
except brokerage expenses, taxes, interest, fees and expenses of the independent
directors (including legal counsel fees), extraordinary expenses, and expenses
incurred in connection with the provision of shareholder services and
distribution services under a plan adopted pursuant to Rule 12b-1 under the
Investment Company Act of 1940. The difference in unified management fees among
the classes is a result of their separate arrangements for non-Rule 12b-1
shareholder services. It is not the result of any difference in advisory or
custodial fees or other expenses related to the management of the fund’s assets,
which do not vary by class. The advisor may pay unaffiliated third parties who
provide recordkeeping and administrative services that would otherwise be
performed by an affiliate of the advisor.
The
rate of the fee is determined by applying a formula that takes into account the
assets of the fund as well as certain assets, if any, of other clients of the
advisor outside the American Century Investments fund family (such as subadvised
funds and separate accounts), as well as exchange-traded funds managed by the
advisor, that use very similar investment teams and strategies (strategy
assets). The use of strategy assets, rather than fund assets alone, in
calculating the fund’s fee rate could allow the fund to realize scheduled cost
savings more quickly. However, it is possible that the fund’s strategy assets
will not include assets of other accounts or that any such assets may not be
sufficient to result in a lower fee rate.
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Management
Fees Paid by the Fund to the Advisor
as a Percentage of Average Net
Assets
for the Fiscal Year Ended October 31, 2023 |
Investor
Class |
I
Class |
R5
Class |
| Balanced |
0.90% |
0.70% |
0.70% |
A
discussion regarding the basis for the Board of Directors’ approval of the
fund’s investment advisory agreement with the advisor is available in the fund’s
annual report to shareholders dated October 31, 2023.
The
Fund Management Team
The
advisor uses teams of portfolio managers and analysts to manage the equity and
fixed-income portions of the fund. These teams function in different ways, as
described below. The five portfolio managers with the most significant
responsibility for the day-to-day management of the fund are identified
below.
Equity
Portion of Balanced
The
team that manages the equity portion of the fund meets regularly to review
portfolio holdings and discuss purchase and sale activity. Team members buy and
sell securities for the equity portion of the fund as they see fit, guided by
the fund’s investment objective and strategy. The individuals listed below are
jointly and primarily responsible for the day-to-day management of the equity
portion of the fund.
Joseph
Reiland
Mr.
Reiland, Vice President and Senior Portfolio Manager, has been a member of the
team that manages the fund since 2021. He joined American Century Investments in
2000 as an investment analyst and became a portfolio manager in 2005. He has a
bachelor’s degree in business administration from Washington University. He is a
CFA charterholder.
Justin
M. Brown
Mr.
Brown, Vice President and Portfolio Manager, has been a member of the team that
manages the fund since 2021. He joined American Century Investments in 2000 as
an investment analyst and became a portfolio manager in 2006. He has a
bachelor’s degree in business administration and finance from Texas Christian
University. He is a CFA charterholder.
Robert
J. Bove
Mr.
Bove, Portfolio Manager, has been a member of the team that manages the fund
since 2021. He joined American Century Investments in 2005 as an investment
analyst and became a portfolio manager in 2016. He has a bachelor’s degree in
accounting from Villanova University and an MBA in finance from New York
University, Leonard N. Stern School of Business.
Fixed-Income
Portion of Balanced
The
advisor uses teams of portfolio managers and analysts, organized by broad
investment categories such as money markets, corporate bonds, government bonds
and municipal bonds, in its management of fixed-income funds. Designated
portfolio managers serve on the firm’s Global Fixed Income Investment Committee
which is responsible for periodically adjusting dynamic investment parameters
based on economic and market conditions. All portfolio managers listed below are
responsible for security selection and portfolio construction within these
parameters, as well as compliance with stated investment objectives and cash
flow monitoring. Other members of the investment team provide research and
analytical support but generally do not make day-to-day investment decisions.
The individuals listed below have the most significant responsibility for the
day-to-day management of the fixed-income portion of the
fund.
Robert
V. Gahagan (Global Fixed Income Investment Committee Representative)
Mr.
Gahagan, Senior Vice President and Senior Portfolio Manager, has served on teams
managing fixed-income investments for American Century since joining the advisor
in 1983. He has a bachelor’s degree in economics and an MBA from the University
of Missouri – Kansas City.
Jason
Greenblath
(Global
Fixed Income Investment Committee Representative)
Mr.
Greenblath, Vice President and Senior Portfolio Manager, has served on teams
managing fixed-income investments since joining the advisor in 2019. Prior to
joining American Century, Mr. Greenblath worked at Aberdeen Standard Investments
as head of U.S. investment grade credit from 2018 to 2019, head of U.S.
investment grade credit research from 2014 to 2018 and as a portfolio manager
from 2012 to 2018. He has a bachelor’s degree in finance from Pennsylvania State
University.
Charles
Tan (Global Fixed Income Investment Committee Representative)
Mr.
Tan, Senior Vice President and Co-Chief Investment Officer, Global Fixed Income,
has served on teams managing fixed-income investments for American Century since
joining the advisor in 2018. Prior to joining American Century, Mr. Tan worked
at Aberdeen Standard Investments as head of North American fixed income from
2015 to 2018 and head of U.S. credit and as a senior portfolio manager from 2005
to 2015. He has a bachelor’s degree in economics from University of
International Business and Economics, Beijing and an MBA from Bucknell
University.
The
statement of additional information provides additional information about the
accounts managed by the portfolio managers, the structure of their compensation,
and their ownership of fund securities.
Fundamental
Investment Policies
Shareholders
must approve any change to the fundamental investment policies contained in the
statement of additional information, as well as any change to the investment
objective of the fund. The Board of Directors and/or the advisor may change any
other policies or investment strategies described in this prospectus or
otherwise used in the operation of the fund at any time, subject to applicable
notice provisions.
Services
Automatically Available to You
Most
accounts automatically have access to the services listed under Ways
to Manage Your Account
when the account is opened. If you have questions about the services that apply
to your account type, please call us.
Generally,
once your account is established, any registered owner (including those on
jointly owned accounts) or any trustee (including those on trust accounts with
multiple trustees), or any authorized signer on business accounts with multiple
authorized signers, may transact business by any of the methods described below.
American Century reserves the right to require all owners or trustees or
authorized signers to act together, at our discretion.
Account
Maintenance Fee
If
you hold Investor Class shares of any American Century Investments mutual fund,
or I Class shares of the American Century Diversified Bond Fund, in an American
Century Investments account (i.e., not through a financial intermediary or
employer-sponsored retirement plan account), we may charge you a $25 annual
account maintenance fee if the value of those shares is less than $10,000. We
will determine the amount of your total eligible investments once per year,
generally the last Friday in October. If the value of those investments is less
than $10,000 at that time, we will automatically redeem shares in one of your
accounts to pay the $25 fee as soon as administratively possible. Please note
that you may incur tax liability as a result of the redemption. In determining
your total eligible investment amount, we will include your investments in all
personal
accounts
(including American Century Investments brokerage accounts) registered under
your Social Security number.
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Personal
accounts
include
individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts,
Coverdell Education Savings Accounts, IRAs (including traditional, Roth,
Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement
accounts. If you have only business, business retirement,
employer-sponsored or American Century Investments brokerage accounts, you
are currently not subject to this fee, but you may be subject to other
fees. |
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Wire
Purchases
Current
Investors:
If you would like to make a wire purchase into an existing account, your bank
will need the following information. (To invest in a new fund, please call us
first to set up the new account.)
•American
Century Investments’ bank information: Commerce Bank N.A., Routing No.
101000019, Account No. 2804918
•Your
American Century Investments account number and fund name
•Your
name
•The
contribution year (for IRAs only)
•Dollar
amount
New
Investors:
To make a wire purchase into a new account, please complete an application or
call us prior to wiring money.
Ways
to Manage Your Account
ONLINE
americancentury.com
Open
an account:
If you are a current or new investor, you can open an account by completing and
submitting our online application. Current investors also can open an account by
exchanging shares from another American Century Investments account with an
identical registration.
Exchange
shares:
Exchange shares from another American Century Investments account with an
identical registration.
Make
additional investments:
Make an additional investment into an established American Century Investments
account. If we do not have your bank information, you can add
it.
Sell
shares*:
Redeem shares and choose whether the proceeds are electronically transferred to
your authorized bank account or sent by check to your address of
record.
* Online
redemptions up to $25,000 per day per account.
IN
PERSON
If
you prefer to handle your transactions in person, visit one of our Investor
Centers and a representative can help you open an account, make additional
investments, and sell or exchange shares.
•4400
Main Street, Kansas City, MO — 8 a.m. to 5 p.m., Monday – Friday
•4917
Town Center Drive, Leawood, KS — 8 a.m. to 5 p.m., Monday – Friday
BY
TELEPHONE
Investor
Services Representative:
1-800-345-2021
Business,
Not-For-Profit and Employer-Sponsored Retirement Plans:
1-800-345-3533
Automated
Information Line:
1-800-345-8765
Open
an account:
If you are a current investor, you can open an account by exchanging shares from
another American Century Investments account with an identical
registration.
Exchange
shares:
Call or use our Automated Information Line (available only to Investor Class
shareholders).
Make
additional investments:
Call or use our Automated Information Line if you have authorized us to invest
from your bank account. The Automated Information Line is available only to
Investor Class shareholders.
Sell
shares:
Call or use our Automated Information Line. The Automated Information Line
redemptions are up to $25,000 per day per account and are available for Investor
Class shareholders only.
BY
MAIL OR FAX
Mail
Address:
P.O. Box 419200, Kansas City, MO 64141-6200 — Fax:
1-888-327-1998
Open
an account:
Send a signed, completed application and check or money order payable to
American Century Investments.
Exchange
shares:
Send written instructions to exchange your shares from one American Century
Investments account to another with an identical
registration.
Make
additional investments:
Send your check or money order for at least $50 with an investment slip. If you
don’t have an investment slip, include your name, address and account number on
your check or money order.
Sell
shares:
Send written instructions or a redemption form to sell shares. Call a Service
Representative to request a form.
AUTOMATICALLY
Open
an account:
Not available.
Exchange
shares:
Send written instructions to set up an automatic exchange of your shares from
one American Century Investments account to another with an identical
registration.
Make
additional investments:
With the automatic investment service, you can purchase shares on a regular
basis. You must invest at least $50 per month per account.
Sell
shares:
You may sell shares automatically by establishing a systematic redemption
plan.
See
Additional
Policies Affecting Your Investment
for more information about investing with us.
The
fund may be purchased by participants in employer-sponsored retirement plans or
through financial
intermediaries
that provide various administrative and distribution services.
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Financial
intermediaries
include
banks, broker-dealers, insurance companies, plan sponsors and financial
professionals. |
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Certain
financial intermediaries perform recordkeeping and administrative services for
their clients that would otherwise be performed by American Century Investments’
transfer agent. In some circumstances, the advisor will pay such service
providers a fee for performing those services. Also, the advisor and the fund’s
distributor may make payments to intermediaries for various additional services,
other expenses and/or the intermediaries’ distribution of the fund out of their
profits or other available sources. Such payments may be made for one or more of
the following: (1) distribution, which may include expenses incurred by
intermediaries for their sales activities with respect to the fund, such as
preparing, printing and distributing sales literature and advertising materials
and compensating registered representatives or other employees of such financial
intermediaries for their sales activities as well as the opportunity for the
fund to be made available by such intermediaries; (2) shareholder services, such
as providing individual and custom investment advisory services to clients of
the financial intermediaries; and (3) marketing and promotional services,
including business planning assistance, educating personnel about the fund, and
sponsorship of sales meetings, which may include covering costs of providing
speakers, meals and other entertainment. The distributor may pay partnership
and/or sponsorship fees to support seminars, conferences, and other programs
designed to educate intermediaries about the fund and may cover the expenses
associated with attendance at such meetings, including travel costs. The
distributor also may pay fees related to obtaining data regarding intermediary
or financial advisor activities to assist American Century Investments with
sales reporting, business intelligence, and training and education
opportunities. These payments and activities are intended to provide an
incentive to intermediaries to sell the fund by educating them about the fund
and helping defray the costs associated with offering the fund. These payments
may create a conflict of interest by influencing the intermediary to recommend
the fund over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information. The amount of any payments
described by this paragraph is determined by the advisor or the distributor, and
all such amounts are paid out of their available assets and not paid by you or
the fund. As a result, the total expense ratio of the fund will not be affected
by any such payments.
Although
each class of the fund’s shares represents an interest in the same fund, each
has a different cost structure, as described below. Which class is right for you
depends on many factors, including how long you plan to hold the shares, how
much you plan to invest, the fee structure of each class, and how you wish to
compensate your financial professional for the services provided to you. Your
financial professional can help you choose the option that is most
appropriate.
Investor
Class
Investor
Class shares are available for purchase without sales charges or commissions but
may be subject to account or transaction fees if purchased through financial
intermediaries. These shares are available to investors in retail brokerage
accounts, broker-dealer-sponsored fee-based advisory accounts, other advisory
accounts where fees are charged, and employer-sponsored retirement
plans.
I
Class
I
Class shares are available for purchase without sales charges or commissions by
endowments, foundations, large institutional investors and financial
intermediaries. Employer-sponsored retirement plans may not invest in I Class
shares, except that plans invested in the I Class prior to April 10, 2017 may
make additional purchases.
R5
Class
R5
Class shares are available for purchase without sales charges or commissions by
participants in certain employer-sponsored retirement plans. R5 Class shares may
be purchased or redeemed only through employer-sponsored retirement plans where
a financial intermediary provides retirement recordkeeping services to plan
participants.
Buying
and Selling Shares Through a Financial Intermediary
Your
ability to purchase, exchange, redeem and transfer shares will be affected by
the policies of the financial intermediary through which you do business. Some
policy differences may include
•minimum
investment requirements
•exchange
policies
•fund
choices
•cutoff
time for investments
•trading
restrictions
In
addition, your financial intermediary may charge a transaction fee for the
purchase or sale of fund shares. Those charges are retained by the financial
intermediary and are not shared with American Century Investments or the fund.
Please contact your financial intermediary or plan sponsor for a complete
description of its policies. Copies of the fund’s annual report, semiannual
report and statement of additional information are available from your financial
intermediary or plan sponsor.
The
fund has authorized certain financial intermediaries to accept orders on the
fund’s behalf. American Century Investments has selling agreements with these
financial intermediaries requiring them to track the time investment orders are
received and to comply with procedures relating to the transmission of orders.
Orders must be received by the financial intermediary on the fund’s behalf
before the time the net asset value is determined in order to receive that day’s
share price. If those orders are transmitted to American Century Investments and
paid for in accordance with the selling agreement, they will be priced at the
net asset value next determined after your request is received in the form
required by the financial intermediary.
If
you submit a transaction request through a financial intermediary that does not
have a selling agreement with us, or if the financial intermediary’s selling
agreement does not cover the type of account or share class requested, we may
reject or cancel the transaction without prior notice to you or the
intermediary.
Investor
and I Class shares may also be available on brokerage platforms of financial
intermediaries that have agreements with American Century Investments to offer
such shares solely when acting as an agent for the shareholder. A shareholder
transacting in Investor or I Class shares in these programs may be required to
pay a commission and/or other forms of compensation to the broker. Shares of the
fund may be available in other share classes that have different fees and
expenses.
Moving
Between Share Classes and Accounts
You
may move your investment between share classes (within the same fund or between
different funds) in certain circumstances deemed appropriate by American Century
Investments. You also may move investments held in certain accounts to a
different type of account if you meet certain criteria. Please contact your
financial professional for more information about moving between share classes
or account types.
See
Additional
Policies Affecting Your Investment
for more information about investing with us.
Eligibility
for Investor Class Shares
The
fund’s Investor Class shares are available for purchase directly from American
Century Investments and through the following types of products, programs or
accounts offered by financial intermediaries:
•self-directed
accounts on transaction-based platforms that may or may not charge a transaction
fee
•employer-sponsored
retirement plans
•broker-dealer
sponsored fee-based wrap programs or other fee-based advisory
accounts
•insurance
products and bank/trust products where fees are being charged
The
fund reserves the right, when in the judgment of American Century Investments it
is not adverse to the fund’s interest, to permit all or only certain types of
investors to open new accounts in the fund, to impose further restrictions, or
to close the fund to any additional investments, all without
notice.
Minimum
Initial Investment Amounts for Investor Class
Unless
otherwise specified below, the minimum initial investment amount to open an
account is $2,500. However, American Century Investments will waive the fund
minimum if you make an initial investment of at least $500 and continue to make
automatic investments of at least $100 a month until reaching the fund minimum.
Investors opening accounts through financial intermediaries may open an account
with $250, but the financial intermediaries may require their clients to meet
different investment minimums. See Investing
Through a Financial Intermediary
for more information.
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| Broker-dealer
sponsored wrap program accounts and/or fee-based advisory
accounts |
No
minimum |
| Coverdell
Education Savings Account and IRAs |
$1,0001,2 |
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Employer-sponsored
retirement plans |
No
minimum |
1 American
Century Investments will waive the minimum if you make an initial investment of
at least $500 and continue to make automatic investments of at least $100 a
month until reaching the minimum.
2 The
minimum initial investment for shareholders investing through financial
intermediaries is $250. Financial intermediaries may have different minimums for
their clients.
Subsequent
Purchases
There
is a $50 minimum for subsequent purchases. See Ways
to Manage Your Account
for more information about making additional investments directly with American
Century Investments. However, there is no subsequent purchase minimum for
financial intermediaries or employer-sponsored retirement plans, but financial
intermediaries may require their clients to meet different subsequent purchase
requirements.
Eligibility
for I Class Shares
I
Class shares are made available for purchase by individuals and large
institutional shareholders such as bank trust departments, corporations,
endowments, foundations and financial advisors that meet the fund’s minimum
investment requirements. Employer-sponsored plans may not invest in I Class
shares, except that plans invested in the I Class prior to April 10, 2017 may
make additional purchases.
Minimum
Initial Investment Amounts for I Class
The
minimum initial investment amount is generally $5 million ($3 million for
endowments and foundations) per fund. If you invest with us through a financial
intermediary, this requirement may be met if your financial intermediary
aggregates your investments with those of other clients into a single group, or
omnibus, account that meets the minimum. The minimum investment requirement may
be waived if you have an aggregate investment in the American Century family of
funds of $10 million or more ($5 million for endowments and foundations).This
includes accounts held directly with American Century and those held through a
financial intermediary. American Century Investments also may waive the minimum
initial investment in other situations it deems appropriate.
American
Century Investments may permit an intermediary to waive the initial minimum per
shareholder as provided in Buying
and Selling Fund Shares
in the statement of additional information.
Eligibility
for R5 Class Shares
The
fund’s R5 Class shares are generally available only through employer-sponsored
retirement plans where a financial intermediary provides retirement
recordkeeping services to plan participants. To be eligible, plan level or
omnibus accounts must be held on the books of the fund.
R5
Class shares are not available to retail accounts, traditional or Roth IRAs, SEP
IRAs, SIMPLE IRAs, SARSEPs or Coverdell education savings accounts.
Minimum
Initial Investment Amounts for R5 Class
There
is no minimum initial amount or subsequent investment amount for R5 Class
shares, but financial intermediaries or plan recordkeepers may require plans to
meet different investment minimums.
Redemptions
Your
redemption proceeds will be calculated using the net
asset value (NAV)
next determined after we receive your transaction request in good
order.
Generally,
we expect to remit your redemption proceeds to you one business day after we
process your transaction. However, we reserve the right to delay delivery of
redemption proceeds up to seven days. For example, each time you make an
investment with American Century Investments, there is a seven-day holding
period before we will release redemption proceeds from those shares, unless you
provide us with satisfactory proof that your purchase funds have cleared.
Investments by wire generally require only a one-day holding period. If you
change your address, we may require that any redemption request made within
seven days be submitted in writing and be signed by all authorized signers with
their signatures guaranteed. We may also require a signature guarantee for
redemptions in other situations, as described below. If you change your bank
information, we may impose a seven-day holding period before we will transfer or
wire redemption proceeds to your bank. Please remember, if you request
redemptions by wire, $10 will be deducted from the amount redeemed. Your bank
also may charge a fee.
Additionally,
if you are age 65 or older, or if we have reason to believe you have a mental or
physical impairment that renders you unable to protect your own interest, we may
temporarily delay the disbursement of redemption proceeds from your account if
we believe that you have been the victim of actual or attempted financial
exploitation. This temporary delay will be for an initial period of no more than
15 business days while we conduct an internal review of the facts and
circumstances of the suspected financial exploitation. If our internal review
supports our belief that actual or attempted financial exploitation has occurred
or is occurring, we may extend the hold for up to 10 additional business days.
At the expiration of the additional hold time, if we have not confirmed that
exploitation has occurred, the proceeds will be released to you.
Under
normal market conditions, the fund generally meets redemption requests through
its holdings of cash or cash equivalents or by selling portfolio securities.
However, we reserve the right to honor certain redemptions with securities,
rather than cash, as described in the next section. Additionally, the fund
may consider interfund lending to meet redemption requests. The fund is more
likely to use these other methods to meet large redemption requests or during
times of market stress.
Special
Requirements for Large Redemptions
If,
during any 90-day period, you redeem fund shares worth more than $250,000 (or 1%
of the value of a fund’s assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. To the extent
practicable, these securities will represent your pro rata share of the fund’s
securities.
We
will value these securities in the same manner as we do in computing the fund’s
net asset value. We may provide these securities in lieu of cash without prior
notice. Also, if payment is made in securities, you may have to pay brokerage or
other transaction costs to convert the securities to cash. These
securities remain subject to market risk until sold, and you may incur capital
gains and/or losses when you sell the securities.
If
your redemption would exceed this limit and you would like to avoid being paid
in securities, please provide us with an unconditional instruction to redeem at
least 15 days prior to the date on which the redemption transaction is to occur.
The instruction must specify the dollar amount or number of shares to be
redeemed and the date of the transaction. This minimizes the effect of the
redemption on a fund and its remaining investors.
Redemption
of Shares in Accounts Below Minimum
If
your account balance falls below the minimum initial investment amount for any
reason, or if you cancel your automatic monthly investment plan prior to
reaching the fund minimum, American Century Investments reserves the right to
redeem the shares in the account and send the proceeds to your address of
record. Prior to doing so, we will notify you and give you 60 days to meet the
minimum or reinstate your automatic monthly investment plan. Please note that
you may incur tax liability as a result of the redemption. For I Class shares,
we reserve the right to convert your shares to Investor Class shares of the same
fund. The Investor Class shares have a unified management fee that is 0.20
percentage points higher than the I Class.
Small
Distributions and Uncashed Distribution Checks
Generally,
dividends and distributions cannot be paid by check for an amount less than $50.
Any such amount will be automatically reinvested in additional shares. The fund
reserves the right to reinvest any dividend or distribution amount you elect to
receive by check if your check is returned as undeliverable or if you do not
cash your check within six months. Interest will not accrue on the amount of
your uncashed check. We will reinvest your check into your account at the NAV on
the day of reinvestment. When reinvested, those amounts are subject to the risk
of loss like any other fund investment. We also reserve the right to change your
election to receive dividends and distributions in cash after a check is
returned undeliverable or uncashed for the six month period, and we may
automatically reinvest all future dividends and distributions at the NAV on the
date of the payment.
Signature
Guarantees
A
signature guarantee — which is different from a notarized signature — is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions:
•Your
redemption or distribution check or automatic redemption is made payable to
someone other than the account owners;
•Your
redemption proceeds or distribution amount is sent by EFT (ACH or wire) to a
destination other than your personal bank account;
•You
are transferring ownership of an account over $100,000;
•You
change your address and request a redemption over $100,000 within seven
days;
•
You request proceeds from redemptions, dividends, or distributions be sent to an
address or financial institution differing from
those
on record; or
•
You make a redemption or other transaction request via telephone, and we are
unable to verify your identity.
We
reserve the right to require a signature guarantee for other transactions, or we
may employ other security measures, such as signature comparison or notarized
signature, at our discretion.
Canceling
a Transaction
American
Century Investments will use its best efforts to honor your request to revoke a
transaction instruction if your revocation request is received prior to the
close of trading on the New York Stock Exchange (NYSE) (generally 4 p.m. Eastern
time) on the trade date of the transaction. Once processing has begun, or the
NYSE has closed on the trade date, the transaction can no longer be canceled.
Each fund reserves the right to suspend the offering of shares for a period of
time and to reject any specific investment (including a purchase by exchange).
Additionally, we may refuse a purchase if, in our judgment, it is of a size that
would disrupt the management of a fund.
Frequent
Trading Practices
Frequent
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of frequent
trading activity is significant relative to a fund’s net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund’s performance could be negatively impacted by the increased trading costs
created by frequent trading if the additional trading costs are significant.
Because
of the potentially harmful effects of abusive trading practices, the fund’s
Board of Directors has approved American Century Investments’ abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
and using fair value pricing when current market prices are not readily
available. Although these efforts are designed to discourage abusive trading
practices, they cannot eliminate the possibility that such activity will occur.
American Century Investments seeks to exercise its judgment in implementing
these tools to the best of its ability in a manner that it believes is
consistent with shareholder interests.
American
Century Investments uses a variety of techniques to monitor for and detect
frequent trading practices. These techniques may vary depending on the type of
fund, the class of shares or whether the shares are held directly or indirectly
with American Century Investments. They may change from time to time as
determined by American Century Investments in its sole discretion. To minimize
harm to the funds and their shareholders, we reserve the right to reject any
purchase order (including exchanges) from any shareholder we believe has a
history of frequent trading or whose trading, in our judgment, has been or may
be disruptive to the funds. In making this judgment, we may consider trading
done in multiple accounts under common ownership or control.
Currently,
for shares held directly with American Century Investments, we may deem the sale
of all or a substantial portion of a shareholder’s purchase of fund shares to be
frequent trading if the sale is made:
•within
seven days of the purchase; or
•within
30 days of the purchase, if it happens more than once per year.
To
the extent practicable, we try to use the same approach for defining frequent
trading for shares held through financial intermediaries. American Century
Investments reserves the right, in its sole discretion, to identify other
trading practices as abusive and to modify its monitoring and other practices as
necessary to deal with novel or unique abusive trading practices.
The
frequent trading limitations do not apply to the following types of
transactions:
•purchases
of shares through reinvested distributions (dividends and capital
gains);
•redemption
of shares to pay fund or account fees;
•CheckWriting
redemptions;
•redemptions
requested following the death of a registered shareholder;
•transactions
through automatic purchase or redemption plans;
•transfers
and re-registrations of shares within the same fund;
•shares
exchanged from one share class to another within the same fund;
•transactions
by 529 college savings plans and funds of funds (however shareholders of
American Century’s funds of funds are subject to the limitations);
and
•reallocation
or rebalancing transactions in broker-dealer sponsored fee-based wrap and
advisory programs.
For
shares held in employer-sponsored retirement plans, generally only
participant-directed exchange transactions are subject to the frequent trading
restrictions. For this purpose, employer-sponsored retirement plans do not
include SEP IRAs, SIMPLE IRAs, or SARSEPs.
In
addition, American Century Investments reserves the right to accept purchases
and exchanges in excess of the trading restrictions discussed above if it
believes that such transactions would not be inconsistent with the best
interests of fund shareholders or this policy.
American
Century Investments’ policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century Investments handles, there can be no assurance
that American Century Investments’ efforts will identify all trades or trading
practices that may be considered abusive. American Century Investments monitors
aggregate trades placed in omnibus accounts and works with financial
intermediaries to identify shareholders engaging in abusive trading practices
and impose restrictions to discourage such practices. Because American Century
Investments relies on financial intermediaries to provide information and impose
restrictions, our ability to monitor and discourage abusive trading practices in
omnibus accounts may be dependent upon the intermediaries’ timely performance of
such duties and restrictions may not be applied uniformly in all
cases.
Your
Responsibility for Unauthorized Transactions
American
Century Investments and its affiliated companies use procedures reasonably
designed to confirm that telephone, electronic and other instructions are
genuine. These procedures include recording telephone calls, requesting
additional identifying information, requiring personalized security codes or
other information online, and sending confirmation of transactions. If we follow
these procedures, we are not responsible for any losses that may occur due to
unauthorized instructions. For transactions conducted over the Internet, we
recommend the use of a secure Internet browser. In addition, you should verify
the accuracy of your confirmation statements immediately after you receive
them.
A
Note About Mailings to Shareholders
To
reduce the amount of mail you receive from us, we generally deliver a single
copy of fund documents (like shareholder reports, proxies and prospectuses) to
investors who share an address, even if their accounts are registered under
different names. Investors who share an address may also receive
account-specific documents (like statements) in a single envelope. If you prefer
to receive your documents addressed individually, please call us or your
financial professional. For American Century Investments brokerage accounts,
please call 1-888-345-2071.
Right
to Change Policies
We
reserve the right to change any stated investment requirement, including those
that relate to purchases, exchanges and redemptions. In accordance with
applicable law, we also may alter, add or discontinue any service or privilege.
Changes may affect all investors or only those in certain classes or groups. In
addition, from time to time we may waive a policy on a case-by-case basis, as
the advisor deems appropriate.
Share
Price
American
Century Investments will price the fund shares you purchase, exchange or redeem
based on the net
asset value
(NAV) next determined after your order is received in good order by the fund’s
transfer agent, or other financial intermediary with the authority to accept
orders on the fund’s behalf. We determine the NAV of the fund as of the close of
regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange
(NYSE) on each day the NYSE is open. On days when the NYSE is closed (including
certain U.S. national holidays), we do not calculate the NAV.
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The
net
asset value
,
or NAV, of each class of the fund is the current value of the class’s
assets minus any liabilities, divided by the number of shares of the class
outstanding.
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The
value of the securities and other assets and liabilities held by the funds are
determined by the advisor, as the valuation designee, pursuant to its valuation
policies and procedures. The funds’ Board of Directors oversees the valuation
designee and at least annually reviews its valuation policies and procedures.
Valuations are determined in accordance with applicable federal securities laws
and accounting principles generally accepted in the United
States.
Portfolio
securities for which market quotations are readily available are valued at their
market price. As a general rule, equity securities (including exchange-traded
funds) and other equity instruments for which market quotations are readily
available are valued at the last reported official closing price or sale price
as of the time the NAV is determined.
Fixed-income
securities are generally valued using prices obtained from independent pricing
services approved by the valuation designee or market quotations provided by
dealers. Pricing
services will generally provide evaluated prices based on accepted industry
conventions, which may require the service to use its own discretion. Evaluated
prices are commonly derived through utilization of market models that take into
consideration various market factors, assumptions and security characteristic,
including but not limited to: trade data, quotations from broker- dealers and
active market makers, relevant yield curve and spread data, related sector
levels, creditworthiness, trade data or market information on comparable
securities and other relevant security specific information. The use of
different models or inputs may result in pricing services determining a
different price for the same security. The methods used by the pricing services
and the valuations so established are reviewed by the valuation designee under
the oversight of the Board of Directors.
Debt
obligations with 60 days or less remaining until maturity may be valued at
amortized cost.
If
the valuation designee determines that the market price for a portfolio security
is not readily available or is believed by the valuation designee to be
unreliable, such security is valued at fair value as determined in good faith by
the valuation designee, in accordance with its policies and procedures.
Circumstances that may cause the fund to determine that market quotations are
not available or reliable include, but are not limited to:
•when
there is a significant event subsequent to the market quotation;
•trading
in a security has been halted during the trading day, or
•trading
in a security is insufficient or did not take place due to closure or
holiday.
If
such circumstances occur, the valuation designee will fair value the security if
the fair valuation would materially impact the fund’s NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with the valuation
designee’s valuation policies and procedures.
The
effect of using fair value determinations is that the fund’s NAV will be based,
to some degree, on security valuations that the valuation designee reasonably
believes are fair rather than being solely determined by the
market.
With
respect to any portion of the fund’s assets that are invested in other mutual
funds, the fund’s NAV will be calculated based upon the NAVs of such mutual
funds. These mutual funds are required to explain the circumstances under which
they will use fair value pricing and the effects of using fair value pricing in
their prospectuses.
The
value of any security or other asset denominated in a currency other than U.S.
dollars is then converted to U.S. dollars at the prevailing foreign exchange
rate at the time the fund’s NAV is determined. Trading of securities in foreign
markets may not take place every day the NYSE is open. Also, trading in some
foreign markets and on some electronic trading networks may take place on
weekends or holidays when the fund’s NAV is not calculated. So, the value of the
fund’s portfolio may be affected on days when you will not be able to purchase,
exchange or redeem fund shares.
Distributions
Federal
tax laws require the fund to make distributions to its shareholders in order to
qualify as a regulated investment company. Qualification as a regulated
investment company means that the fund should not be subject to state or federal
income tax on amounts distributed. The distributions generally consist of
dividends and interest received by the fund, as well as capital
gains
realized by the fund on the sale of its investment securities. The fund
generally expects to pay distributions of substantially all its income, if any,
quarterly.
Distributions from realized capital gains, if any, are paid annually, usually in
December. The fund may make more frequent distributions, if necessary, to comply
with Internal Revenue Code provisions.
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Capital
gains
are
increases in the values of capital assets, such as stocks or bonds, from
the time the assets are purchased. |
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You
will participate in fund distributions when they are declared, starting the next
business day after your purchase is effective. For example, if you purchase
shares on a day that a distribution is declared, you will not receive that
distribution. If you redeem shares, you will receive any distribution declared
on the day you redeem. If you redeem all shares, we will include any
distributions received with your redemption proceeds.
Generally,
participants in tax-deferred retirement plans reinvest all distributions. For
investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century Investments account, to your bank electronically, or to your home
address or to another person or address by check.
Some
of the tax consequences of owning shares of a fund will vary depending on
whether you own them through a taxable or tax-deferred account. Distributions by
a fund of dividend and interest income, capital gains and other income it has
generated through its investment activities will generally be taxable to
shareholders who hold shares in a taxable account. Tax consequences also may
result when investors sell fund shares after the net asset value has increased
or decreased.
Tax-Deferred
Accounts
If
you purchase fund shares through a tax-deferred account, such as an IRA or
employer-sponsored retirement plan, income and capital gains distributions
usually will not be subject to current taxation but will accumulate in your
account under the plan on a tax-deferred basis. Likewise, moving from one fund
to another fund within a plan or tax-deferred account generally will not cause
you to be taxed. For information about the tax consequences of making purchases
or withdrawals through a tax-deferred account, please consult your plan
administrator, your summary plan description or a tax
advisor.
Taxable
Accounts
If
you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund
shares.
Taxability
of Distributions
Fund
distributions may consist of income, such as dividends and interest earned by a
fund from its investments, or capital gains generated by a fund from the sale of
investment securities. Distributions of income are taxed as ordinary income,
unless they are designated as qualified
dividend income
and you meet a minimum required holding period with respect to your shares of
the fund, in which case distributions of income are taxed at the same rates as
long-term capital gains.
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Qualified
dividend income
is a dividend received by a fund from the stock of a domestic or
qualifying foreign corporation, provided that the fund has held the stock
for a required holding period and the stock was not on loan at the time of
the dividend. |
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The
tax character of any distributions from capital gains is determined by how long
the fund held the underlying security that was sold, not by how long you have
been invested in the fund or whether you reinvest your distributions or take
them in cash. Short-term (one year or less) capital gains are taxable as
ordinary income. Gains on securities held for more than one year are taxed at
the lower rates applicable to long-term capital gains.
If
the fund’s distributions exceed current and accumulated earnings and profits,
such excess will generally be considered a return of capital. A return of
capital distribution is generally not subject to tax, but will reduce your cost
basis in the fund and result in higher realized capital gains (or lower realized
capital losses) upon the sale of fund shares.
For
taxable accounts, American Century Investments or your financial intermediary
will inform you of the tax character of fund distributions for each calendar
year in an annual tax mailing.
If
you meet specified income levels, you will also be subject to a 3.8% Medicare
contribution tax which is imposed on net investment income, including interest,
dividends and capital gains. Distributions also may be subject to state and
local taxes. Because everyone’s tax situation is unique, you may want to consult
your tax professional about federal, state and local tax
consequences.
Taxes
on Transactions
Your
redemptions — including exchanges to other American Century Investments mutual
funds — are subject to capital gains tax. Short-term capital gains are gains on
fund shares you held for 12 months or less. Long-term capital gains are gains on
fund shares you held for more than 12 months. If your shares decrease in value,
their sale or exchange will result in a long-term or short-term capital loss.
However, you should note that loss realized upon the sale or exchange of shares
held for six months or less will be treated as a long-term capital loss to the
extent of any distribution of long-term capital gain to you with respect to
those shares. If a loss is realized on the redemption of fund shares, the
reinvestment in additional fund shares within 30 days before or after the
redemption may be subject to the wash sale rules of the Internal Revenue Code.
This may result in a postponement of the recognition of such loss for federal
income tax purposes.
If
you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.
Buying
a Dividend
Purchasing
fund shares in a taxable account shortly before a distribution is sometimes
known as buying a dividend. In taxable accounts, you must pay income taxes on
the distribution whether you reinvest the distribution or take it in cash. In
addition, you will have to pay taxes on the distribution whether the value of
your investment decreased, increased or remained the same after you bought the
fund shares.
The
risk in buying a dividend is that a fund’s portfolio may build up taxable income
and gains throughout the period covered by a distribution, as income is earned
and securities are sold at a profit. The fund distributes the income and gains
to you, after subtracting any losses, even if you did not own the shares when
the income was earned or gains occurred.
If
you buy a dividend, you incur the full tax liability of the distribution period,
but you may not enjoy the full benefit of the income earned or the gains
realized in the fund’s portfolio.
The
fund offers multiple classes of shares. The classes have different fees,
expenses, eligibility requirements and/or minimum investment requirements.
Different fees and expenses will affect performance.
Except
as described below, all classes of shares of the fund have identical voting,
dividend, liquidation and other rights, preferences, terms and conditions. The
only differences between the classes are (a) each class may be subject to
different expenses specific to that class; (b) each class has a different
identifying designation or name; (c) each class has exclusive voting rights with
respect to matters solely affecting that class; (d) each class may have
different exchange privileges; and (e) the I Class may provide for conversion
from that class into shares of the Investor Class of the same fund.
Understanding
the Financial Highlights
The
table on the next page itemizes what contributed to the changes in share price
during the most recently ended fiscal year. It also shows the changes in share
price for this period in comparison to changes over the last five fiscal
years.
On
a per-share basis, the table includes as appropriate
•share
price at the beginning of the period
•investment
income and capital gains or losses
•distributions
of income and capital gains paid to investors
•share
price at the end of the period
The
table also includes some key statistics for the period as
appropriate
•Total
Return –
the overall percentage of return of the fund, assuming the reinvestment of all
distributions
•Expense
Ratio –
the operating expenses of the fund as a percentage of average net
assets
•Net
Income Ratio –
the net investment income of the fund as a percentage of average net
assets
•Portfolio
Turnover –
the percentage of the fund’s investment portfolio that is replaced during the
period
The
Financial Highlights that follow have been audited by Deloitte & Touche LLP.
Their Report of Independent Registered Public Accounting Firm and the financial
statements and financial highlights are included in the fund’s annual report,
which is available upon request.
Balanced
Fund
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| For
a Share Outstanding Throughout the Years Ended October 31 (except as
noted) |
| Per-Share
Data |
Ratios
and Supplemental Data |
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Income
From Investment Operations*: |
Distributions
From: |
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| Ratio
to Average Net Assets of: |
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| Net
Asset
Value,
Beginning
of Period |
Net
Investment
Income
(Loss)(1) |
Net
Realized
and Unrealized
Gain (Loss) |
Total
From Investment Operations |
Net
Investment
Income |
Net
Realized
Gains |
Total
Distributions |
Net
Asset
Value,
End
of Period |
Total
Return(2) |
Operating
Expenses |
Net
Investment
Income
(Loss) |
Portfolio
Turnover
Rate |
Net
Assets,
End of Period
(in thousands) |
| Investor
Class |
| 2023 |
$15.61 |
0.29 |
0.53 |
0.82 |
(0.30) |
— |
(0.30) |
$16.13 |
5.20% |
0.91% |
1.72% |
72% |
$727,083 |
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| 2022 |
$22.97 |
0.18 |
(3.38) |
(3.20) |
(0.15) |
(4.01) |
(4.16) |
$15.61 |
(16.94)% |
0.91% |
1.00% |
94% |
$758,468 |
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| 2021 |
$19.73 |
0.14 |
4.30 |
4.44 |
(0.17) |
(1.03) |
(1.20) |
$22.97 |
23.34% |
0.90% |
0.67% |
225% |
$1,002,740 |
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| 2020 |
$19.25 |
0.20 |
1.22 |
1.42 |
(0.25) |
(0.69) |
(0.94) |
$19.73 |
7.54% |
0.90% |
1.03% |
165% |
$841,328 |
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| 2019 |
$18.55 |
0.29 |
1.73 |
2.02 |
(0.29) |
(1.03) |
(1.32) |
$19.25 |
11.82% |
0.90% |
1.58% |
101% |
$838,309 |
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| I
Class |
| 2023 |
$15.62 |
0.32 |
0.53 |
0.85 |
(0.33) |
— |
(0.33) |
$16.14 |
5.41% |
0.71% |
1.92% |
72% |
$74,455 |
|
| 2022 |
$22.98 |
0.21 |
(3.37) |
(3.16) |
(0.19) |
(4.01) |
(4.20) |
$15.62 |
(16.76)% |
0.71% |
1.20% |
94% |
$74,220 |
|
| 2021 |
$19.74 |
0.19 |
4.29 |
4.48 |
(0.21) |
(1.03) |
(1.24) |
$22.98 |
23.58% |
0.70% |
0.87% |
225% |
$107,875 |
|
| 2020 |
$19.26 |
0.23 |
1.23 |
1.46 |
(0.29) |
(0.69) |
(0.98) |
$19.74 |
7.75% |
0.70% |
1.23% |
165% |
$99,524 |
|
| 2019 |
$18.56 |
0.33 |
1.72 |
2.05 |
(0.32) |
(1.03) |
(1.35) |
$19.26 |
12.04% |
0.70% |
1.78% |
101% |
$68,889 |
|
| R5
Class |
| 2023 |
$15.62 |
0.32 |
0.53 |
0.85 |
(0.33) |
— |
(0.33) |
$16.14 |
5.41% |
0.71% |
1.92% |
72% |
$1,550 |
|
| 2022 |
$22.98 |
0.19 |
(3.35) |
(3.16) |
(0.19) |
(4.01) |
(4.20) |
$15.62 |
(16.76)% |
0.71% |
1.20% |
94% |
$1,567 |
|
| 2021 |
$19.74 |
0.18 |
4.30 |
4.48 |
(0.21) |
(1.03) |
(1.24) |
$22.98 |
23.58% |
0.70% |
0.87% |
225% |
$7,050 |
|
| 2020 |
$19.26 |
0.24 |
1.22 |
1.46 |
(0.29) |
(0.69) |
(0.98) |
$19.74 |
7.75% |
0.70% |
1.23% |
165% |
$3,545 |
|
| 2019 |
$18.56 |
0.33 |
1.72 |
2.05 |
(0.32) |
(1.03) |
(1.35) |
$19.26 |
12.04% |
0.70% |
1.78% |
101% |
$3,053 |
|
|
|
| |
| Notes
to Financial Highlights |
(1)Computed
using average shares outstanding throughout the period.
(2)Total
returns are calculated based on the net asset value of the last business day.
Total returns for periods less than one year are not annualized.
*The
amount shown for a share outstanding throughout the period may not correlate
with the Statement(s) of Operations or precisely reflect the class expense
differentials due to the timing of transactions in shares of a fund in relation
to income earned and/or fluctuations in the fair value of a fund's
investments.
Where
to Find More Information
Annual
and Semiannual Reports
Additional
information about the fund’s investments is available in the fund’s annual and
semiannual reports to shareholders. In the fund’s annual report, you will find a
discussion of the market conditions and investment strategies that significantly
affected the fund’s performance during its last fiscal year. This prospectus
incorporates by reference the Report of Independent Registered Public Accounting
Firm and the financial statements included in the fund’s annual
report
to shareholders dated October 31, 2023.
Statement
of Additional Information (SAI)
The
SAI contains a more detailed legal description of the fund’s operations,
investment restrictions, policies and practices. The SAI
is incorporated by reference into this prospectus. This means that it is legally
part of this prospectus, even if you don’t request a copy.
You
may obtain a free copy of the SAI, annual reports and semiannual reports, and
you may ask questions about the fund or your accounts, online at
americancentury.com, by contacting American Century Investments at the addresses
or telephone numbers listed below or by contacting your financial
intermediary.
The
Securities and Exchange Commission (SEC)
Reports
and other information about the fund are available on the EDGAR database on the
SEC’s website at sec.gov, and copies of this information may be obtained, after
paying a duplicating fee, by electronic request at the following email address:
[email protected].
This
prospectus shall not constitute an offer to sell securities of the fund in any
state, territory, or other jurisdiction where the fund’s shares have not been
registered or qualified for sale, unless such registration or qualification is
not required, or under any circumstances in which such offer or solicitation
would be unlawful.
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American
Century Investments
americancentury.com
|
|
Retail
Investors
P.O. Box 419200
Kansas City, Missouri
64141-6200
1-800-345-2021 or 816-531-5575 |
Financial
Professionals
P.O. Box 419385
Kansas City, Missouri
64141-6385
1-800-345-6488 |
Investment
Company Act File No. 811-00816
CL-PRS-91780 2403
