ck0000717316-20220831
January
1, 2023
American
Century Investments
Prospectus
California Intermediate-Term Tax-Free Bond
Fund
Investor
Class (BCITX)
I
Class (BCTIX)
Y
Class (ACYTX)
A
Class (BCIAX)
C
Class (BCIYX)
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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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©2023
American Century Proprietary Holdings, Inc. All rights reserved.
The fund seeks safety of
principal and high current income that is exempt from federal and California
income taxes.
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. You may qualify for A Class sales charge
discounts if you and your family invest, or agree to invest in the future, at
least $100,000 in
American Century Investments funds. More information about these
and other discounts is available from your financial professional and in
Calculation
of Sales Charges
on page 13 of the fund’s prospectus, Appendix
A
of the fund’s prospectus and Sales
Charges
in Appendix
B
of the statement of additional information.
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Shareholder
Fees
(fees paid directly from your
investment) |
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Investor |
I |
Y |
A |
C |
Maximum
Sales Charge (Load) Imposed on
Purchases (as a percentage of offering
price) |
None |
None |
None |
4.50% |
None |
Maximum
Deferred Sales Charge (Load) (as a
percentage of the lower of the
original offering
price or redemption proceeds when redeemed
within
one year of purchase) |
None |
None |
None |
None¹ |
1.00% |
Maximum
Annual Account Maintenance Fee
(waived if eligible investments total at
least $10,000) |
$25 |
None |
None |
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 |
Y |
A |
C |
| Management
Fee |
0.45% |
0.25% |
0.22% |
0.45% |
0.45% |
| Distribution
and Service (12b-1) Fees |
None |
None |
None |
0.25% |
1.00% |
| Other
Expenses |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
| Total
Annual Fund Operating Expenses |
0.46% |
0.26% |
0.23% |
0.71% |
1.46% |
1 Purchases
of $1 million or more may be subject to a contingent deferred sales charge of
1.00% if the shares are redeemed within one year of the date
of the purchase.
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 |
$47 |
$148 |
$258 |
$580 |
| I
Class |
$27 |
$84 |
$147 |
$331 |
| Y
Class |
$24 |
$74 |
$130 |
$293 |
| A
Class |
$519 |
$667 |
$828 |
$1,293 |
| C
Class |
$149 |
$462 |
$798 |
$1,542 |
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
69%
of the average value of its portfolio.
The portfolio managers primarily buy
investment-grade debt securities and, under normal market conditions, will
invest at least 80% of the fund’s net assets in debt securities that have
interest payments exempt from federal and California income
taxes. Cities, counties and other municipalities in California
and U.S. territories, such as Puerto Rico, issue these securities.
The
fund’s weighted average maturity will be not less than three years nor more than
ten years. However, there is no maturity limit on individual
securities.
Although
the fund invests primarily in investment-grade securities, up to 20% of the
value of the fund’s net assets may be invested in below investment-grade
securities, also known as junk bonds. The fund also may invest in securities
which, while not rated, are determined by the portfolio managers to be of
comparable credit quality to those rated below
investment-grade.
When determining whether to sell a
security, portfolio managers consider, among other things, current and
anticipated changes in interest rates, the credit quality of a particular
issuer, comparable alternatives, general market conditions and any other factor
deemed relevant by the portfolio managers.
•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.
•Below
Investment-Grade Securities Risk – Issuers
of lower rated, high-yield securities are more vulnerable to real or perceived
economic changes (such as an economic downturn or a prolonged period of rising
interest rates), political changes or adverse developments specific to an
issuer. These factors may be more likely to cause an issuer of low quality bonds
to default on its obligations.
•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 interest rate risk is moderate under normal market conditions, but it
may fluctuate as the portfolio managers reposition the fund in response to
changing market conditions. A period of rising interest rates may negatively
affect the fund’s performance.
•California
Economic Risk –
The fund will be sensitive to events that affect California’s economy.
Significant political or economic developments in California will likely impact
virtually all municipal securities issued in the state. Because the fund invests
principally in California municipal securities, it may have a higher level of
risk than funds that invest in a larger universe of securities.
•Municipal
Securities Risk –
The fund invests principally in municipal securities, so it will be
sensitive to events that affect municipal markets, including legislative or
political changes and the financial condition of the issuers of municipal
securities. By investing primarily in municipal securities, the fund may have a
higher level of risk than funds that invest in a larger universe of securities.
Additionally, the novel coronavirus (COVID-19)
pandemic has stressed the financial resources of many municipal issuers, which
may impair a municipal issuer’s ability to meet its financial obligations when
due and could adversely impact the value of its bonds, which could negatively
impact the performance of the fund.
•Loss
of Tax Exemptions Risk –
There is no guarantee that all of the fund’s income will be exempt from federal
or state income taxes. Income from municipal bonds held by the fund could be
declared taxable because of unfavorable changes in tax laws, adverse
interpretations by the Internal Revenue Service or state tax authorities, or
non-compliant conduct of a bond issuer. The fund may sell securities that lose
their tax-exempt statuses at inopportune times, which may cause tax consequences
or a decrease in the fund’s value.
•Liquidity
Risk – The
fund may also be subject to 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.
•Market
Risk – The
value of securities owned by the fund may go up and down, sometimes rapidly or
unpredictably. 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.
•Public
Health Emergency Risk – A
pandemic, caused by the infectious respiratory illness COVID-19, has
caused
market disruption and other economic impacts. Markets experienced volatility,
reduced liquidity, and increased trading costs. The pandemic
may continue to impact the fund and its underlying
investments.
•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,
including yields, please visit americancentury.com.
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
(1Q
2014): 2.47%
Lowest Performance Quarter
(4Q
2016): -3.54%
As
of September 30,
2022,
the most recent calendar quarter end, the fund’s Investor Class year-to-date
return was -9.76%.
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Average
Annual Total Returns
For
the calendar year ended December 31, 2021 |
1
year |
5
years |
10
years |
Since
Inception
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Inception
Date
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Investor
Class
Return Before Taxes |
1.26% |
3.31% |
2.96% |
— |
11/09/1983 |
| Return After Taxes on
Distributions |
1.25% |
3.30% |
2.95% |
— |
11/09/1983 |
| Return After Taxes on Distributions and
Sale of Fund Shares |
1.58% |
3.11% |
2.85% |
— |
11/09/1983 |
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I
Class
Return Before Taxes |
1.38% |
3.52% |
3.16% |
— |
03/01/2010 |
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Y
Class
Return Before Taxes |
1.42% |
— |
— |
3.37% |
04/10/2017 |
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A
Class
Return
Before Taxes |
-3.62% |
2.11% |
2.23% |
— |
03/01/2010 |
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C
Class1
Return
Before Taxes |
0.26% |
2.29% |
2.09% |
— |
03/01/2010 |
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S&P
Intermediate Term California AMT-Free Municipal Bond Index
(reflects no deduction for
fees, expenses and taxes) |
0.46% |
3.19% |
3.06% |
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1 C Class shares
automatically convert to A Class shares after approximately eight years.All
returns for periods greater than eight years reflect this
conversion.
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
Joseph
Gotelli,
Vice President and Senior Portfolio Manager, has served on teams managing
fixed-income investments for American Century Investments since joining the
advisor in 2008.
Alan
Kruss,
Vice President and Portfolio Manager, has served on teams managing fixed-income
investments for American Century Investments since joining the advisor in
1997.
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, A and C Classes, 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 endowments 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 Y Class shares.
For
the Investor, A and C 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 the I or Y
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.
The
fund intends to distribute income that is exempt from regular federal and
California income taxes, however, fund distributions may be subject to capital
gains tax. A portion of the fund’s distributions may be subject to federal
and/or California income taxes or to the federal alternative minimum
tax.
If
you hold your fund shares through a tax-deferred investment plan, such as a
401(k) plan or an IRA, any distributions received from the fund may be taxable
as ordinary income upon withdrawal from the tax-deferred plan, regardless of
whether the distributions were tax-exempt when earned.
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 for investments in all classes except the Y Class.
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?
The
fund seeks safety of principal and high current income that is exempt from
federal and California income taxes.
What
are the fund’s principal investment strategies?
The
portfolio managers primarily buy investment-grade
debt securities,
and, under normal market conditions, will invest at least 80% of the fund’s net
assets in debt securities with interest payments exempt from federal and
California income taxes. The fund may change this 80% policy only upon 60 days’
prior written notice to shareholders. Cities, counties and other municipalities
in California and U.S. territories usually issue these securities for public
projects, such as schools and roads.
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Debt
securities
include
fixed-income investments such as notes, bonds, commercial paper and U.S.
Treasury securities.
An
investment-grade
debt
security is one that has been rated by an independent rating agency in the
top four credit quality categories or determined by the advisor to be of
comparable credit quality. The details of the fund’s credit quality
standards are described in the statement of additional
information.
Municipalities
include
states, cities, counties, incorporated townships, the District of Columbia
and U.S. territories and possessions. They can issue private activity
bonds and public purpose bonds. |
The
fund’s weighted
average maturity
will be not less than three years nor more than ten years. However, there is no
maturity limit on individual securities. The portfolio managers actively manage
the fund’s portfolio, seeking to manage the interest rate risk and credit risk
assumed by the fund.
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Weighted
average maturity (WAM)
is
a method for comparing portfolios of bonds by calculating the average time
until full maturity weighted by the market value of the principal amount
to be paid. A fund that contains a large proportion of bonds with
significant periods of time remaining on their maturity terms will have a
longer WAM, while the WAM will be shorter for a fund that contains more
bonds close to maturity. |
Although
the fund invests primarily in investment-grade securities, up to 20% of the
value of the fund’s net assets may be invested in below investment-grade
securities, also known as junk bonds. The fund may also invest in securities
which, while not rated, are determined by the portfolio managers to be of
comparable credit quality to those rated below investment-grade.
Although
not historically part of the core strategy of the fund and unlikely to occur in
the future, the portfolio managers are permitted to invest up to 20% of the
fund’s assets in debt securities with interest payments that are subject to
federal income tax, California income tax and/or the federal alternative minimum
tax.
The
fund may purchase securities in a number of different ways, such as by using
when-issued transactions. The fund may also purchase securities in advance,
through forward commitment transactions, to generate additional
income.
In
addition to the principal investment strategies described above, 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), provided that such investments are in keeping with the
fund’s investment objective.
In
the event of exceptional market or economic 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.
When
determining whether to buy or sell a security, portfolio managers consider,
among other things, current and anticipated changes in interest rates, the
credit quality of a particular issuer, comparable alternatives, general market
conditions and any other factor deemed relevant by the portfolio
managers.
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?
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. 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 nonpayment. 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 all of its assets in securities rated in the lowest
investment-grade category (for example, Baa or BBB). The issuers of these
securities are more likely to pose a credit risk, that is, to have problems
making interest and principal payments, than issuers of higher-rated securities.
The fund may also invest part of its assets in securities rated below
investment-grade or that are unrated, including bonds that are in technical or
monetary default. By definition, the issuers of many of these securities may
have problems making interest and principal payments. Below investment-grade
municipal bonds are vulnerable to real or perceived changes in the business
climate and can be less liquid and more volatile.
When
interest rates change, the fund’s share value will be affected. Generally, when
interest rates rise, the fund’s share value will decline. The opposite is true
when interest rates decline. The degree to which interest rate changes affect
fund performance varies and is related to the weighted average maturity of the
particular
fund.
For example, when interest rates rise, you can expect the share value of a
long-term bond fund to fall more than that of a short-term bond fund. When rates
fall, the opposite is true. Therefore, a period of rising interest rates may
negatively affect the fund’s performance. The fund’s interest rate risk is
moderate under normal market conditions, but it may fluctuate as the portfolio
managers reposition the fund in response to changing market conditions.
Because
the fund invests principally in California municipal securities, it will be
sensitive to events that affect California’s economy. Significant political or
economic developments in California will likely impact virtually all municipal
securities issued in the state. The fund may have a higher level of risk than
funds that invest in a larger universe of securities. For more information about
the risks affecting California securities, see the statement of additional
information. Additionally, the novel coronavirus (COVID-19)
pandemic has stressed the financial resources of many municipal issuers, which
may impair a municipal issuer’s ability to meet its financial obligations when
due and could adversely impact the value of its bonds, which could negatively
impact the performance of the fund.
Because
the fund invests principally in municipal securities, it will be sensitive to
events that affect municipal markets, including legislative or political changes
and the financial condition of the issuers of municipal securities. By investing
primarily in municipal securities, the fund may have a higher level of risk than
funds that invest in a larger universe of securities.
The
portfolio managers monitor the fund’s weighted average maturity and seek to
adjust it as appropriate, taking into account market conditions and other
relevant factors. Thus, under normal market conditions, its potential income and
potential loss are moderate as compared to other funds, but may fluctuate as the
portfolio managers reposition the fund in response to changing market
conditions.
There
is no guarantee that all of the fund’s income will be exempt from federal or
state income taxes. The portfolio managers are permitted to invest up to 20% of
the fund’s assets in debt securities with interest payments that are subject to
federal income tax, California income tax and/or the federal alternative minimum
tax. In addition, income from municipal bonds held by the fund could be declared
taxable because of unfavorable changes in tax laws, adverse interpretations by
the Internal Revenue Service or state tax authorities, or non-compliant conduct
of a bond issuer.
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
value of securities owned by the fund may go up and down, sometimes rapidly or
unpredictably, due to factors affecting securities markets generally, particular
industries, real or perceived adverse economic conditions or investor sentiment
generally. 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.
A
pandemic, caused by the infectious respiratory illness COVID-19, caused
travel restrictions, disruption of healthcare systems, prolonged quarantines,
cancellations, supply chain interruptions, lower consumer demand, layoffs,
credit downgrades, and defaults among other economic impacts. Certain markets
experienced temporary closures, extreme volatility, losses, reduced liquidity
and increased trading costs. The pandemic
may continue to impact the fund and its underlying 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 prices 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.
Although
the fund’s use of derivative instruments is limited, be aware that 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 swap agreement. 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 a
fund. Further, the use of derivative instruments may give rise to taxable
income.
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 Trustees, investment advisor and fund management teams play key roles
in the management of the fund.
The
Board of Trustees
The
Board of Trustees 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 trustees’
role is to provide oversight and not to provide day-to-day management. More than
three-fourths of the trustees 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 portfolio of the fund and
directing the purchase and sale of the 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 management fee is calculated daily and paid monthly in arrears. Out of
the fund’s fee, the advisor pays all expenses of managing and operating the fund
except brokerage expenses, taxes, interest, fees and expenses of the independent
trustees (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. For all classes other than the Y 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
percentage rate used to calculate the management fee for each class of shares of
a fund is determined daily using a two-component formula that takes into account
(i) the daily net assets of certain accounts managed by the advisor that are in
the same broad investment category as the fund (the “Category Fee”) and (ii) the
assets of all funds in the American Century Investments family of funds that
have the same investment advisor and distributor as the fund (the “Complex
Fee”). For purposes of determining the Category Fee and Complex Fee, the assets
of funds managed by the advisor that invest exclusively in the shares of other
funds (funds of funds) are not included. The statement of additional information
contains detailed information about the calculation of the management
fee.
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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 August 31, 2022 |
Investor
Class |
I
Class |
Y
Class |
A
Class |
C
Class |
| California
Intermediate-Term Tax-Free Bond |
0.45% |
0.25% |
0.22% |
0.45% |
0.45% |
A
discussion regarding the basis for the Board of Trustees’ approval of the fund’s
investment advisory agreement with the advisor is available in the fund’s annual
report to shareholders dated August 31, 2022.
The
Fund Management Team
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 each fund’s dynamic investment
parameters based on economic and market conditions. All
portfolio managers listed
below
are responsible for security selection and portfolio construction for the fund
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
for the fund.
The
individuals listed below are jointly and primarily responsible for the
day-to-day management of the fund.
Joseph
Gotelli (Global
Fixed Income Investment Committee Representative)
Mr.
Gotelli, Vice President and Senior Portfolio Manager, has served on teams
managing fixed-income investments since joining the advisor in 2008. He has a
bachelor’s degree in business economics from the University of California, Santa
Barbara and an MBA from Santa Clara University.
Alan
Kruss
Mr.
Kruss, Vice President and Portfolio Manager, has served on teams managing
fixed-income investments since joining the advisor in 1997. He has a bachelor’s
degree in finance from San Francisco State 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 Trustees 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. We will not charge the fee as long as you choose to
manage your accounts exclusively online. You may enroll for exclusive online
account management by visiting americancentury.com. Regardless of whether
you manage your account online, you may request a paper copy of the prospectus,
statement of additional information, or annual report free of
charge.
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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. |
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;
•Contribution
year (for IRAs only); and
•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
and Not-For-Profit:
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 through financial
intermediaries
that provide various administrative and distribution services.
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Financial
intermediaries
include
banks, broker-dealers, insurance companies and financial
professionals. |
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.
Y
Class
Y
Class shares are available for purchase without sales charges or commissions
through financial intermediaries that offer fee based advisory programs. Y Class
shares may be purchased only through financial intermediaries that trade in
omnibus accounts with American Century Investments.
A
Class
A
Class shares are available for purchase through broker-dealers and other
financial intermediaries. These shares carry an initial sales charge and an
ongoing distribution and service (12b-1) fee that is used to compensate your
financial professional. See Calculation
of Sales Charges
below for commission amounts received by financial professionals on the purchase
of A Class shares. The sales charge decreases with the size of the purchase, and
may be reduced or eliminated in certain situations. See Reductions
and Waivers of Sales Charges for A Class
and CDSC
Waivers
below for a full description of the breakpoints, reductions and waivers that may
be available through financial intermediaries in certain types of accounts or
products.
C
Class
C
Class shares are available for purchase through broker-dealers and other
financial intermediaries. These shares do not have an initial sales charge but
carry an ongoing distribution and service (12b-1) fee. Except as noted below,
the commission paid to your financial professional for purchases of C Class
shares is 1.00% of the amount invested, and the shares have a contingent
deferred sales charge (CDSC) when redeemed within one year of purchase. Your
financial professional does not receive the distribution and service (12b-1) fee
until the CDSC period has expired (it is retained by the distributor). See
CDSC
Waivers
below for a full description of the waivers that may be available. C Class
shares automatically convert to A Class shares 8 years after
purchase.
Calculation
of Sales Charges
The
information regarding sales charges provided herein is included free of charge
and in a clear and prominent format at americancentury.com in the Investors
Using Advisors
and Investment
Professionals
portions of the website. From the description of A or C Class shares, a
hyperlink will take you directly to this disclosure.
The
availability of the sales charge reductions and waivers discussed below will
depend upon whether you purchase your shares directly from the fund or through a
financial intermediary. Intermediaries may have different policies and
procedures regarding the availability of these reductions or waivers. Please
refer to Appendix
A
for information provided by certain financial intermediaries regarding their
sales charge waiver or discount policies that are applicable to investors
transacting in fund shares through such financial intermediary.
A
Class
A
Class shares are sold at their offering price, which is net asset value plus an
initial sales charge. This sales charge varies depending on the amount of your
investment, and is deducted from your purchase before it is invested. The sales
charges and the amounts paid to your financial professional
are:
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| Purchase
Amount |
Sales
Charge
as a % of
Offering Price |
Sales
Charge
as a % of Net
Amount Invested |
Dealer
Commission
as a % of Offering Price |
| Less
than $100,000 |
4.50% |
4.71% |
4.00% |
| $100,000
- $249,999 |
3.50% |
3.63% |
3.00% |
| $250,000
- $499,999 |
2.50% |
2.56% |
2.00% |
| $500,000
- $999,999 |
2.00% |
2.04% |
1.75% |
| $1,000,000
- $3,999,999 |
0.00% |
0.00% |
0.75% |
| $4,000,000
- $9,999,999 |
0.00% |
0.00% |
0.50% |
| $10,000,000
or more |
0.00% |
0.00% |
0.25% |
There
is no front-end sales charge for purchases of $1,000,000 or more, but if you
redeem your shares within one year of purchase you will pay a deferred sales
charge of 1.00% of the lower of the original purchase price or the current
market value at redemption, subject to the exceptions listed below. No sales
charge applies to reinvested dividends. No dealer commission will be paid to
your financial professional for purchases by certain employer-sponsored
retirement plans. For this purpose, employer-sponsored retirement plans do not
include SEP IRAs, SIMPLE IRAs or SARSEPs.
Reductions
and Waivers of Sales Charges for A Class
You
may qualify for a reduction or waiver of certain sales charges, but you or your
financial professional must provide certain information, including the account
numbers of any accounts to be aggregated, to American Century Investments at the
time of purchase in order to take advantage of such reduction or waiver. If you
hold assets among multiple intermediaries, it is your responsibility to inform
your intermediary and/or American Century Investments at the time of purchase of
any accounts to be aggregated.
You
and your immediate family (which includes your spouse or domestic partner and
children, step-children, parents or step-parents of you, your spouse or domestic
partner) may combine investments in any share class of any American Century
Investments mutual
fund (excluding certain assets in money market accounts, but including account
assets invested in Qualified Tuition Programs under Section 529) to reduce your
A Class sales charge in the following ways:
Account
Aggregation.
Investments made by you and your immediate family may be aggregated at each
account’s current market value if made for your own account(s) and/or certain
other accounts, such as:
•Certain
trust accounts
•Solely
controlled business accounts
•Single-participant
retirement plans
•Endowments
or foundations established and controlled by you or an immediate family
member
For
purposes of aggregation, only investments made through individual-level accounts
may be combined. Assets held in multiple participant employer-sponsored
retirement plans may be aggregated at a plan level.
Concurrent
Purchases.
You may combine simultaneous purchases in any share class of any American
Century Investments mutual
fund to qualify for a reduced A Class sales charge.
Rights
of Accumulation.
You may take into account the current value of your existing holdings, less any
commissionable shares in the money market funds, in any share class of any
American Century Investments mutual
fund to qualify for a reduced A Class sales charge.
Letter
of Intent.
A Letter of Intent allows you to combine all purchases of any share class of any
American Century Investments mutual
fund you intend to make over a 13-month period to determine the applicable sales
charge, except for purchases in the A or C Class of money market funds. At your
request, existing holdings may be combined with new purchases and sales charge
amounts may be adjusted for purchases made within 90 days prior to our receipt
of the Letter of Intent. Capital appreciation, capital gains and reinvested
dividends earned during the Letter of Intent period do not apply toward its
completion. A portion of your account will be held in escrow to cover additional
A Class sales charges that will be due if your total investments over the
13-month period do not qualify for the applicable sales charge
reduction.
Waivers
for Certain Investors.
The sales charge on A Class shares may be waived for:
•Purchases
by registered representatives and other employees of certain financial
intermediaries (and their immediate family members, which includes their spouse
or domestic partner and children, step-children, parents or step-parents of
them, their spouse or domestic partner) having selling agreements with the
advisor or distributor
•Broker-dealer
sponsored wrap program accounts and/or fee-based accounts maintained for clients
of certain financial intermediaries who have entered into selling agreements
with American Century Investments
•Purchases
in accounts of financial intermediaries that have entered into a selling
agreement with American Century Investments that allows for the waiver of the
sales charge in brokerage accounts that may or may not charge a transaction
fee
•Current
officers, directors and employees of American Century Investments
•Certain
group employer-sponsored retirement plans, where plan level or omnibus accounts
are held with the fund, or shares are purchased by certain retirement plans that
are part of a retirement plan or platform offered by banks, broker-dealers,
financial advisors or insurance companies, or serviced by retirement
recordkeepers. For purposes of this waiver, employer-sponsored retirement plans
do not include SEP IRAs, SIMPLE IRAs or SARSEPs. However, SEP IRA, SIMPLE IRA or
SARSEP retirement plans that (i) held shares of an A Class fund prior to March
1, 2009 that received sales charge waivers or (ii) held shares of an Advisor
Class fund that was renamed A Class on March 1, 2010, may permit additional
purchases by new and existing participants in A Class shares without an initial
sales charge. Refer to Buying
and Selling Fund Shares
in the statement of additional information.
•Purchases
of additional shares in accounts that held shares of an Advisor Class fund that
was renamed A Class on either September 4, 2007, December 3, 2007 or March 1,
2010. However, if you close your account or if you transfer your account to
another financial intermediary, future purchases of A Class shares of a fund may
not receive a sales charge waiver.
An
investor who receives a sales charge waiver for purchases of fund shares through
a financial intermediary may become ineligible to receive such waiver if the
nature of the investor’s relationship with and/or the services it receives from
the financial intermediary changes. Please consult with your financial
professional for further details.
C
Class
C
Class shares are sold at their net asset value without an initial sales charge.
If you purchase shares through a financial intermediary who receives a
commission from the fund’s distributor on the purchase and you redeem your
shares within 12 months of purchase, you will pay a CDSC of 1.00% of the
original purchase price or the current market value at redemption, whichever is
less. The purpose of the CDSC is to permit the fund’s distributor to recoup all
or a portion of the up-front payment made to your financial professional. There
is no CDSC on shares acquired through reinvestment of dividends or capital
gains.
American
Century Investments generally limits purchases of C Class shares to investors
whose aggregate investments in American Century Investments mutual
funds are less than $1,000,000. However, it is your responsibility to inform
your financial intermediary and/or American Century Investments at the time of
purchase of any accounts to be aggregated, including investments in any share
class of any American Century Investments mutual
fund (excluding certain assets in money market accounts, but including account
assets invested in Qualified Tuition Programs under Section 529) in accounts
held by you and your immediate family members (which includes your spouse or
domestic partner and children, step-children, parents or step-parents of you,
your spouse or domestic partner). Once you reach this limit, you should work
with your financial intermediary to determine what share class is most
appropriate for additional purchases.
C
Class shares automatically convert to A Class shares after being held for 8
years. The automatic conversion will be executed in the month following the
8-year anniversary of the purchase date for such C Class shares without any
sales charge, fee or other charges. The conversion from C Class shares is not
considered a taxable event for Federal income tax purposes. After the
conversion, shares will be subject to all features and expenses of A Class
shares.
Calculation
of Contingent Deferred Sales Charge (CDSC)
To
minimize the amount of the CDSC you may pay when you redeem shares, the fund
will first redeem shares acquired through reinvested dividends and capital gain
distributions, which are not subject to a CDSC. Shares that have been in your
account long enough that they are not subject to a CDSC are redeemed next. For
any remaining redemption amount, shares will be sold in the order they were
purchased (earliest to latest).
CDSC
Waivers
Any
applicable CDSC for A or C Classes may be waived in the following
cases:
•redemptions
through systematic withdrawal plans not exceeding annually 12% of the lesser of
the original purchase cost or current market value for A and C Class
shares
•redemptions
through employer-sponsored retirement plan accounts. For this purpose,
employer-sponsored retirement plans do not include SIMPLE IRAs, SEP IRAs or
SARSEPS.
•distributions
from IRAs due to attainment of age 59½ for A and C Class
shares
•required
minimum distributions from retirement accounts due to the shareholder reaching
the qualified age based on applicable IRS regulations
•tax-free
returns of excess contributions to IRAs
•redemptions
due to death or post-purchase disability
•exchanges,
unless the shares acquired by exchange are redeemed within the original CDSC
period
•IRA
Rollovers from any American Century Investments mutual
fund held in an employer-sponsored retirement plan, for A Class shares
only
•if
no dealer commission was paid to the financial intermediary on the purchase for
any other reason
Reinstatement
Privilege
Within
90 days of a redemption, dividend payment or capital gains distribution of any A
or B Class shares, you may reinvest all or a portion of the proceeds in A Class
shares of any American Century Investments mutual
fund at the then-current net asset value without paying an initial sales charge.
At your request, any CDSC you paid on an A Class redemption that you are
reinvesting will be credited to your account. You may use the privilege only
once per account. This privilege may only be invoked by the original account
owner to reinvest shares in an account with the same registration as the account
from which the redemption or distribution originated. This privilege does not
apply to systematic or automatic transactions, including, for example, automatic
purchases, withdrawals and payroll deductions. If you wish to use this
reinvestment privilege, you or your financial professional must provide written
notice to American Century Investments.
Employer-Sponsored
Retirement Plans
Certain
group employer-sponsored retirement plans that hold a single account for all
plan participants with the fund, or that are part of a retirement plan or
platform offered by banks, broker-dealers, financial advisors or insurance
companies, or serviced by retirement recordkeepers are eligible to purchase
Investor, A and C Class shares. Employer-sponsored retirement plans are not
eligible to purchase I or Y Class shares. However, employer-sponsored retirement
plans that were invested in the I Class prior to April 10, 2017 may make
additional purchases. For more information regarding employer-sponsored
retirement plan types, please refer to Buying
and Selling Fund Shares
in the statement of additional information. A and C Class purchases are
available at net asset value with no dealer commission paid to the financial
professional, and do not incur a CDSC. A and C Class shares purchased in
employer-sponsored retirement plans are subject to applicable distribution and
service (12b-1) fees, which the financial intermediary begins receiving
immediately at the time of purchase. American Century does not impose minimum
initial investment amount, plan size or participant number requirements by class
for employer-sponsored retirement plans; however, financial intermediaries or
plan recordkeepers may require plans to meet different
requirements.
If
you hold your fund shares through a tax-deferred investment plan, such as a
401(k) plan or an IRA, any distributions received from the fund may be taxable
as ordinary income upon withdrawal from the tax-deferred plan, regardless of
whether the distributions were tax-exempt when earned.
Exchanging
Shares
You
may exchange shares of the fund for shares of the same class of another American
Century Investments mutual
fund without a sales charge if you meet the following
criteria:
•The
exchange is for a minimum of $100
•For
an exchange that opens a new account, the amount of the exchange must meet or
exceed the minimum account size requirement for the fund receiving the
exchange
For
purposes of computing any applicable CDSC on shares that have been exchanged,
the holding period will begin as of the date of purchase of the original fund
owned. Exchanges from a money market fund are subject to a sales charge on the
fund being purchased, unless the money market fund shares were acquired by
exchange from a fund with a sales charge or by reinvestment of dividends or
capital gains distributions.
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.
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 for a complete description of its
policies. Copies of the fund’s annual reports, semiannual reports and statement
of additional information are available from your financial
intermediary.
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,
I and Y 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, I or Y 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 are available in other share classes that have
different fees and expenses.
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, A and C Classes
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 (CESA) and IRAs |
$1,0001,
2 |
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, 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 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.
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 Y Class Shares
Y
Class shares are available for purchase without sales charges or commissions
through financial intermediaries that offer fee based advisory programs. Y Class
shares may be purchased only through financial intermediaries that trade in
omnibus accounts with American Century Investments. Y Class shares may not be
purchased by shareholders investing through employer-sponsored retirement plans
or individuals investing directly with American Century
Investments.
Minimum
Initial Investment Amounts for Y Class
There
is no minimum initial investment amount or subsequent investment amount for Y
Class shares, but financial intermediaries may require different investment
minimums.
Limitations
on Sale
As
of the date of this prospectus the fund is registered for sale only in the
following states and territories: Arizona, California, Colorado, District of
Columbia, Florida, Hawaii, New Mexico, Nevada, New York, Oregon, Texas, Utah,
Washington, the Virgin Islands and Guam.
Redemptions
Your
redemption proceeds will be calculated using the net asset value (NAV) next
determined after we receive your transaction request in good order. If you sell
C, or in certain cases, A Class shares, you may pay a sales charge, depending on
how long you have held your shares, as described above.
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 for 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
shares redeemed in this manner may be subject to a sales charge if held less
than the applicable time period. You also 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 Trustees 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 each 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.
|
The
value of the securities and other assets and liabilities held by the fund are
determined by the advisor, as the valuation designee, pursuant to its valuation
policies and procedures. The fund’s Board of Trustees oversees the valuation
designee and at least annually reviews it valuation policies and procedures.
Valuations are determined in accordance with applicable federal securities laws
and accounting principles generally accepted in the United States.
Fixed
income securities are generally valued
using prices obtained from approved
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 and security characteristics
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 Trustees.
Debt
obligations with 60 days or less remaining until maturity may be valued at
amortized cost.
If
the valuation designee determines that the valuation methods mentioned above do
not reflect the security’s fair value,
the valuation designee will use other valuation methodologies to value a
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 one or more
mutual
funds,
the fund’s NAV will be calculated based upon the NAVs of such mutual
funds.
These mutual
funds
are required by law to explain the circumstances under which they will use fair
value pricing and the effects of using fair value pricing in their
prospectuses.
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.
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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. |
The
fund expects to declare distributions from net income, if any, daily. These
distributions are paid on the last business day of each month. The fund
generally pays distributions from capital gains, if any, once a year usually in
December. The fund may make more frequent distributions, if necessary, to comply
with Internal Revenue Code provisions. The fund intends to designate
distributions from net income as exempt-interest dividends. To be eligible to
make this designation, at least 50% of the value of the fund’s total assets must
consist of tax-exempt interest obligations at the close of each
quarter.
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.
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. Generally, participants in
tax-deferred retirement plans reinvest all dividends.
Tax-Exempt
Income
Most
of the income that the fund receives from municipal securities is exempt from
California and regular federal income taxes. However, corporate shareholders
should be aware that distributions are subject to California’s corporate
franchise tax.
Taxable
Income
The
fund’s investment performance also is based on sources other than income from
municipal securities. These investment performance sources, while not the
primary source of fund distributions, will generate taxable income to you. Some
of these investment performance sources are
•Market
Discount Purchases.
The fund may buy a tax-exempt security for a price less than the principal
amount of the bond. If the price of the bond increases over time, a portion of
the gain may be treated as ordinary income and taxable as ordinary income if it
is distributed to shareholders.
•Capital
Gains.
When the fund sells a security, even a tax-exempt municipal security, it can
generate a capital gain or loss, which you must report on your tax
return.
•Temporary
Investments.
Some temporary investments, such as securities loans and repurchase agreements,
can generate taxable income.
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
its investment securities. Distributions of income are generally exempt from
regular federal income tax. However, if distributions are federally taxable,
such distributions may be designated as qualified
dividend income.
If so, and if you meet a minimum required holding period with respect to your
shares of the fund, such distributions of income are taxed at the same rates as
long-term capital gains. The fund does not expect a significant portion of its
distributions to be derived from qualified dividend income.
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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. |
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
a 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. This tax is not imposed on tax-exempt
interest.
If
you hold your fund shares through a tax-deferred investment plan, such as a
401(k) plan or an IRA, any distributions received from the fund may be taxable
as ordinary income upon withdrawal from the tax-deferred plan, regardless of
whether the distributions were tax-exempt when earned.
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 and will be disallowed to
the extent of any distribution of tax-exempt income 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 the 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 among 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 such class; (d) each class may have
different exchange privileges; (e) the I Class may provide for conversion from
that class into shares of the Investor Class of the same fund; and (f) the C
Class provides for automatic conversion from that class into shares of the A
Class of the same fund after 8 years.
Service,
Distribution and Administrative Fees
Investment
Company Act Rule 12b-1 permits mutual funds that adopt a written plan to pay
certain expenses associated with the distribution of their shares out of fund
assets. The fund’s A Class and C Class each have a 12b-1 plan. The plans provide
for the fund to pay annual fees of 0.25% for A Class and 1.00% for C Class to
the distributor for distribution and individual shareholder services, including
past distribution services. The distributor pays all or a portion of such fees
to the financial intermediaries that make the classes available. Because these
fees may be used to pay for services that are not related to prospective sales
of the fund, each class will continue to make payments under its plan even if it
is closed to new investors. Because these fees are paid out of the fund’s assets
on an ongoing basis, over time these fees will increase the cost of your
investment and may cost you more than paying other types of sales charges. The
higher fees for C Class shares may cost you more over time than paying the
initial sales charge for A Class shares. For additional information about the
plans and their terms, see Multiple
Class Structure
in the statement of additional information.
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.
American
Century Investments does not pay any fees to financial intermediaries on Y Class
shares.
Understanding
the Financial Highlights
The
table on the next few pages 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 for
the fiscal year ended August 31, 2022
have been audited by Deloitte
& Touche LLP. PricewaterhouseCoopers
LLP audited
the Financial Highlights for the prior fiscal years presented.
The 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.
California
Intermediate-Term Tax-Free Bond Fund
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| For
a Share Outstanding Throughout the Years Ended August 31 (except as
noted) |
| Per-Share
Data |
Ratios
and Supplemental Data |
|
|
| Income
From Investment Operations: |
Distributions
From: |
|
| Ratio
to Average Net Assets of: |
| |
|
| 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 |
| 2022 |
$12.28 |
0.23 |
(1.13) |
(0.90) |
(0.23) |
(0.01) |
(0.24) |
$11.14 |
(7.38)% |
0.46% |
2.00% |
69% |
$757,454 |
|
| 2021 |
$12.17 |
0.26 |
0.11 |
0.37 |
(0.26) |
— |
(0.26) |
$12.28 |
3.04% |
0.46% |
2.10% |
30% |
$917,539 |
|
| 2020 |
$12.23 |
0.27 |
(0.04) |
0.23 |
(0.27) |
(0.02) |
(0.29) |
$12.17 |
1.93% |
0.47% |
2.26% |
40% |
$887,525 |
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| 2019 |
$11.69 |
0.30 |
0.55 |
0.85 |
(0.30) |
(0.01) |
(0.31) |
$12.23 |
7.29% |
0.47% |
2.56% |
54% |
$1,158,927 |
|
| 2018 |
$12.00 |
0.30 |
(0.31) |
(0.01) |
(0.30) |
— |
(0.30) |
$11.69 |
0.03% |
0.47% |
2.56% |
52% |
$1,143,719 |
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| I
Class |
| 2022 |
$12.29 |
0.26 |
(1.13) |
(0.87) |
(0.26) |
(0.01) |
(0.27) |
$11.15 |
(7.19)% |
0.26% |
2.20% |
69% |
$1,028,424 |
|
| 2021 |
$12.17 |
0.28 |
0.12 |
0.40 |
(0.28) |
— |
(0.28) |
$12.29 |
3.33% |
0.26% |
2.30% |
30% |
$932,636 |
|
| 2020 |
$12.23 |
0.30 |
(0.04) |
0.26 |
(0.30) |
(0.02) |
(0.32) |
$12.17 |
2.05% |
0.27% |
2.46% |
40% |
$838,639 |
|
| 2019 |
$11.70 |
0.32 |
0.55 |
0.87 |
(0.33) |
(0.01) |
(0.34) |
$12.23 |
7.59% |
0.27% |
2.76% |
54% |
$734,197 |
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| 2018 |
$12.00 |
0.32 |
(0.29) |
0.03 |
(0.33) |
— |
(0.33) |
$11.70 |
0.23% |
0.27% |
2.76% |
52% |
$527,123 |
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| Y
Class |
| 2022 |
$12.29 |
0.26 |
(1.13) |
(0.87) |
(0.26) |
(0.01) |
(0.27) |
$11.15 |
(7.16)% |
0.23% |
2.23% |
69% |
$252,327 |
|
| 2021 |
$12.18 |
0.29 |
0.11 |
0.40 |
(0.29) |
— |
(0.29) |
$12.29 |
3.37% |
0.23% |
2.33% |
30% |
$263,120 |
|
| 2020 |
$12.23 |
0.30 |
(0.03) |
0.27 |
(0.30) |
(0.02) |
(0.32) |
$12.18 |
2.17% |
0.24% |
2.49% |
40% |
$252,098 |
|
| 2019 |
$11.70 |
0.33 |
0.54 |
0.87 |
(0.33) |
(0.01) |
(0.34) |
$12.23 |
7.53% |
0.24% |
2.79% |
54% |
$11,228 |
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| 2018 |
$12.00 |
0.33 |
(0.30) |
0.03 |
(0.33) |
— |
(0.33) |
$11.70 |
0.26% |
0.24% |
2.79% |
52% |
$6,889 |
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| For
a Share Outstanding Throughout the Years Ended August 31 (except as
noted) |
| Per-Share
Data |
Ratios
and Supplemental Data |
|
|
| Income
From Investment Operations: |
Distributions
From: |
|
| Ratio
to Average Net Assets of: |
| |
|
| 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) |
| A
Class |
| 2022 |
$12.29 |
0.20 |
(1.13) |
(0.93) |
(0.20) |
(0.01) |
(0.21) |
$11.15 |
(7.60)% |
0.71% |
1.75% |
69% |
$16,499 |
|
| 2021 |
$12.18 |
0.23 |
0.11 |
0.34 |
(0.23) |
— |
(0.23) |
$12.29 |
2.79% |
0.71% |
1.85% |
30% |
$23,015 |
|
| 2020 |
$12.24 |
0.24 |
(0.04) |
0.20 |
(0.24) |
(0.02) |
(0.26) |
$12.18 |
1.68% |
0.72% |
2.01% |
40% |
$20,507 |
|
| 2019 |
$11.70 |
0.27 |
0.55 |
0.82 |
(0.27) |
(0.01) |
(0.28) |
$12.24 |
7.11% |
0.72% |
2.31% |
54% |
$21,617 |
|
| 2018 |
$12.00 |
0.27 |
(0.30) |
(0.03) |
(0.27) |
— |
(0.27) |
$11.70 |
(0.22)% |
0.72% |
2.31% |
52% |
$21,438 |
|
| C
Class |
| 2022 |
$12.29 |
0.12 |
(1.13) |
(1.01) |
(0.12) |
(0.01) |
(0.13) |
$11.15 |
(8.30)% |
1.46% |
1.00% |
69% |
$4,631 |
|
| 2021 |
$12.18 |
0.14 |
0.10 |
0.24 |
(0.13) |
— |
(0.13) |
$12.29 |
2.02% |
1.46% |
1.10% |
30% |
$7,603 |
|
| 2020 |
$12.24 |
0.15 |
(0.04) |
0.11 |
(0.15) |
(0.02) |
(0.17) |
$12.18 |
0.92% |
1.47% |
1.26% |
40% |
$11,531 |
|
| 2019 |
$11.70 |
0.18 |
0.55 |
0.73 |
(0.18) |
(0.01) |
(0.19) |
$12.24 |
6.22% |
1.47% |
1.56% |
54% |
$14,457 |
|
| 2018 |
$12.01 |
0.18 |
(0.31) |
(0.13) |
(0.18) |
— |
(0.18) |
$11.70 |
(0.96)% |
1.47% |
1.56% |
52% |
$16,299 |
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| |
| 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 and
do not reflect applicable sales charges, if any. Total returns for periods less
than one year are not annualized.
The
information in this Appendix is part of, and incorporated into, the fund’s
prospectus.
Financial
Intermediary Sales Charge Reduction and Waiver Information
The
availability of certain sales charge waivers and discounts will depend on
whether you purchase your shares directly from the fund or through a financial
intermediary. Intermediaries may have different policies and procedures
regarding the availability of front-end sales load waivers or contingent
deferred (back-end) sales load (CDSC) waivers, which are set forth below. In all
instances, it is the investor’s responsibility to notify the fund or the
applicable financial intermediary at the time of purchase of any relationship or
other facts qualifying the investor for sales charge waivers or discounts.
For
waivers and discounts not available through a particular intermediary,
shareholders will have to purchase fund shares directly from the fund or through
another intermediary to receive these waivers or discounts.
Sales
Charge Reductions and Waivers Available through Ameriprise
Financial
The
following information applies to A Class shares purchases if you have an account
with or otherwise purchase fund shares through Ameriprise
Financial.
Shareholders
purchasing fund shares through an Ameriprise Financial brokerage account are
eligible for the following front-end sales charge waivers, which may differ from
those disclosed elsewhere in this fund’s prospectus or SAI:
•Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs or SAR-SEPs.
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the same fund family).
•Shares
exchanged from C Class shares of the same fund in the month of or following the
7-year anniversary of the purchase date. To the extent that this prospectus
elsewhere provides for a waiver with respect to exchanges of C Class shares or
conversion of C Class shares following a shorter holding period, that waiver
will apply.
•Employees
and registered representatives of Ameriprise Financial or its affiliates and
their immediate family members.
•Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education
Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit
plans) that are held by a covered family member, defined as an Ameriprise
financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant
(mother, father, grandmother, grandfather, great grandmother, great
grandfather), advisor’s lineal descendant (son, step-son, daughter,
step-daughter, grandson, granddaughter, great grandson, great granddaughter) or
any spouse of a covered family member who is a lineal descendant.
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (i.e., Rights of
Reinstatement).
Sales
Charge Reductions and Waivers Available through Baird
Effective
June 15, 2020, shareholders purchasing fund shares through a Baird platform or
account will only be eligible for the following sales charge waivers (front-end
sales charge waivers and CDSC waivers) and discounts, which may differ from
those disclosed elsewhere in this prospectus or the SAI.
Front-End
Sales Charge Waivers on Investors A-shares Available at Baird
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing share of the same fund.
•Share
purchase by employees and registered representatives of Baird or its affiliate
and their family members as designated by Baird.
•Shares
purchase from the proceeds of redemptions from another American Century
Investments fund, provided (1) the repurchase occurs within 90 days following
the redemption, (2) the redemption and purchase occur in the same accounts, and
(3) redeemed shares were subject to a front-end or deferred sales charge (known
as rights of reinstatement).
•A
shareholder in the funds' Investor C Shares will have their share converted at
net asset value to Investor A shares of the fund if the shares are no longer
subject to CDSC and the conversion is in line with the policies and procedures
of Baird.
•Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at
Baird, including 401(k) plans, 457 plans, employer-sponsored 403(b) plans,
profit sharing and money purchase pension plans and defined benefit plans. For
purposes of this provision, employer-sponsored retirement plans do not include
SEP IRAs, Simple IRAs or SAR-SEPs.
CDSC
Waivers on Investor A and C shares Available at Baird
•Shares
sold due to death or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the fund’s
prospectus.
•Shares
bought due to returns of excess contributions from an IRA Account.
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching the qualified age based on applicable IRS
regulations as described in the prospectus.
•Shares
sold to pay Baird fees but only if the transaction is initiated by
Baird.
•Shares
acquired through a right of reinstatement.
Front-End
Sales Charge Discounts Available at Baird: Breakpoints and/or Rights of
Accumulations
•Breakpoints
as described in this prospectus.
•Rights
of accumulations which entitles shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of American Century
Investments assets held by accounts within the purchaser’s household at Baird.
Eligible American Century Investments assets not held at Baird may be included
in the rights of accumulations calculation only if the shareholder notifies his
or her financial advisor about such assets.
•Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of
American Century Investments funds through Baird, over a 13-month period of
time.
Policies
regarding transactions through Edward D. Jones & Co., L.P. (Edward
Jones)
The
following information has been provided by Edward Jones:
Effective
on or after April 1, 2021, the following information supersedes prior
information with respect to transactions and positions held in fund shares
through an Edward Jones system. Clients of Edward Jones (also referred to as
"shareholders") purchasing fund shares on the Edward Jones commission and
fee-based platforms are eligible only for the following sales charge discounts
(also referred to as "breakpoints") and waivers, which can differ from discounts
and waivers described elsewhere in the mutual fund prospectus or statement of
additional information (SAI) or through another broker-dealer. In all instances,
it is the shareholder's responsibility to inform Edward Jones at the time of
purchase of any relationship, holdings of American Century, or other facts
qualifying the purchaser for discounts or waivers. Edward Jones can ask for
documentation of such circumstance. Shareholders should contact Edward Jones if
they have questions regarding their eligibility for these discounts and
waivers.
Breakpoints
•Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in
the prospectus.
Rights
of Accumulation (ROA)
•The
applicable sales charge on a purchase of A Class shares is determined by taking
into account all share classes (except certain money market funds and any assets
held in group retirement plans) of American Century held by the shareholder or
in an account grouped by Edward Jones with other accounts for the purpose of
providing certain pricing considerations (pricing groups). If grouping assets as
a shareholder, this includes all share classes held on the Edward Jones platform
and/or held on another platform. The inclusion of eligible fund family assets in
the ROA calculation is dependent on the shareholder notifying Edward Jones of
such assets at the time of calculation. Money market funds are included only if
such shares were sold with a sales charge at the time of purchase or acquired in
exchange for shares purchased with a sales charge.
•The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to
establish or change ROA for the IRA accounts associated with the plan to a
plan-level grouping as opposed to including all share classes at a shareholder
or pricing group level.
•ROA
is determined by calculating the higher of cost minus redemptions or market
value (current shares x NAV).
Letter
of Intent (LOI)
•Through
a LOI, shareholders can receive the sales charge and breakpoint discounts for
purchases shareholders intend to make over a 13- month period from the date
Edward Jones receives the LOI. The LOI is determined by calculating the higher
of cost or market value of qualifying holdings at LOI initiation in combination
with the value that the shareholder intends to buy over a 13-month period to
calculate the front-end sales charge and any breakpoint discounts. Each purchase
the shareholder
makes
during that 13-month period will receive the sales charge and breakpoint
discount that applies to the total amount. The inclusion of eligible fund family
assets in the LOI calculation is dependent on the shareholder notifying Edward
Jones of such assets at the time of calculation. Purchases made before the LOI
is received by Edward Jones are not adjusted under the LOI and will not reduce
the sales charge previously paid. Sales charges will be adjusted if LOI is not
met.
•If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to
establish or change ROA for the IRA accounts associated with the plan to a
plan-level grouping, LOIs will also be at the plan-level and may only be
established by the employer.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
•Associates
of Edward Jones and its affiliates and their family members who are in the same
pricing group (as determined by Edward Jones under its policies and procedures)
as the associate. This waiver will continue for the remainder of the associate's
life if the associate retires from Edward Jones in good-standing and remains in
good standing pursuant to Edward Jones' policies and procedures.
•Shares
purchased in an Edward Jones fee-based program.
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment.
•Shares
purchased from the proceeds of redeemed shares of the same fund family so long
as the following conditions are met: 1) the proceeds are from the sale of shares
within 60 days of the purchase, and 2) the sale and purchase are made in the
same share class and the same account or the purchase is made in an individual
retirement account with proceeds from liquidations in a non-retirement
account.
•Shares
exchanged into Class A shares from another share class so long as the exchange
is into the same fund and was initiated at the discretion of Edward Jones.
Edward Jones is responsible for any remaining CDSC due to the fund company, if
applicable. Any future purchases are subject to the applicable sales charge as
disclosed in the prospectus.
•Exchanges
from Class C shares to Class A shares of the same fund, generally, in the 84th
month following the anniversary of the purchase date or earlier at the
discretion of Edward Jones.
Contingent
Deferred Sales Charge (CDSC) Waivers
If
the shareholder purchases shares that are subject to a CDSC and those shares are
redeemed before the CDSC is expired, the shareholder is responsible to pay the
CDSC except in the following conditions:
•The
death or disability of the shareholder.
•Systematic
withdrawals with up to 10% per year of the account value.
•Return
of excess contributions from an Individual Retirement Account
(IRA).
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
if the redemption is taken in or after the year the shareholder reaches
qualified age based on applicable IRS regulations.
•Shares
sold to pay Edward Jones fees or costs in such cases where the transaction is
initiated by Edward Jones.
•Shares
exchanged in an Edward Jones fee-based program.
•Shares
acquired through NAV reinstatement.
•Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described
below.
Other
Important Information Regarding Transactions Through Edward Jones
Minimum
Purchase Amounts
▪Initial
purchase minimum: $250
▪Subsequent
purchase minimum: none
Minimum
Balances
▪Edward
Jones has the right to redeem at its discretion fund holdings with a balance of
$250 or less. The following are examples of accounts that are not included in
this policy:
•A
fee-based account held on an Edward Jones platform.
•A
529 account held on an Edward Jones platform.
•An
account with an active systematic investment plan or LOI.
Exchanging
Share Classes
▪At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a
shareholder's holdings in a fund to Class A shares of the same
fund.
Sales
Charge Reductions and Waivers Available through Janney Montgomery Scott LLC
(Janney)
Effective
May 1, 2020, if you purchase fund shares through a Janney Montgomery Scott LLC
(Janney) brokerage account, you will be eligible for the following load waivers
(front-end sales charge waivers and contingent deferred sales charge (CDSC), or
back-end sales charge, waivers) and discounts, which may differ from those
disclosed elsewhere in this fund’s Prospectus or SAI.
Front-end
sales charge* waivers on A Class shares available at Janney
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family).
•Shares
purchased by employees and registered representatives of Janney or its
affiliates and their family members as designated by Janney.
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within ninety (90) days following the redemption, (2)
the redemption and purchase occur in the same account, and (3) redeemed shares
were subject to a front-end or deferred sales load (i.e., right of
reinstatement).
•Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.
•Shares
acquired through a right of reinstatement.
•C
Class shares that are no longer subject to a contingent deferred sales charge
and are converted to A Class shares of the same fund pursuant to Janney’s
policies and procedures.
CDSC
waivers on A and C Class shares available at Janney
•Shares
sold upon the death or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the fund’s
prospectus.
•Shares
purchased in connection with a return of excess contributions from an IRA
account.
•Shares
sold as part of a required minimum distribution for IRA and other retirement
accounts if the redemption is taken in or after the year the shareholder reaches
qualified age based on applicable IRS regulations.
•Shares
sold to pay Janney fees but only if the transaction is initiated by
Janney.
•Shares
acquired through a right of reinstatement.
•Shares
exchanged into the same share class of a different fund.
Front-end
sales charge* discounts available at Janney: breakpoints, rights of
accumulation, and/or letters of intent
•Breakpoints
as described in the fund’s prospectus.
•Rights
of accumulation (ROA), which entitle shareholders to breakpoint discounts, will
be automatically calculated based on the aggregated holding of fund family
assets held by accounts within the purchaser’s household at Janney. Eligible
fund family assets not held at Janney may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such
assets.
•Letters
of intent which allow for breakpoint discounts based on anticipated purchases
within a fund family, over a 13-month time period. Eligible fund family assets
not held at Janney Montgomery Scott may be included in the calculation of
letters of intent only if the shareholder notifies his or her financial advisor
about such assets.
*Also
referred to as an “initial sales charge.”
Sales
Charge Reductions and Waivers Available through Merrill Lynch
Shareholders
purchasing fund shares through a Merrill Lynch platform or account will be
eligible only for the following load waivers (front-end sales charge waivers and
contingent deferred, or back-end, sales charge waivers) and discounts, which may
differ from those disclosed elsewhere in this fund’s prospectus or
SAI.
Front-end
Sales Load Waivers on A Class Shares available at Merrill Lynch
•Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health
savings accounts) and trusts used to fund those plans, provided that the shares
are not held in a commission-based brokerage account and shares are held for the
benefit of the plan.
•Shares
purchased by a 529 Plan (does not include 529-specific share classes or
equivalents).
•Shares
purchased through a Merrill Lynch affiliated investment advisory
program.
•Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment
advisory program to a Merrill Lynch brokerage (non-advisory) account pursuant to
Merrill Lynch’s policies relating to sales load discounts and
waivers.
•Shares
purchased by third party investment advisors on behalf of their advisory clients
through Merrill Lynch’s platform.
•Shares
of funds purchased through the Merrill Edge Self-Directed platform] (if
applicable).
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family).
•Shares
exchanged from C Class (i.e., level-load) shares of the same fund pursuant to
Merrill Lynch’s policies relating to sales load discounts and
waivers.
•Employees
and registered representatives of Merrill Lynch or its affiliates and their
family members.
•Directors
or trustees of the fund, and employees of the fund’s investment advisor or any
of its affiliates, as described in this prospectus.
•Eligible
shares purchased from the proceeds of redemptions within the American Century
Investments family of mutual funds, provided (1) the repurchase occurs within 90
days following the redemption, (2) the redemption and purchase occur in the same
account, and (3) redeemed shares were subject to a front-end or deferred sales
load (known as Rights of Reinstatement) Automated transactions (i.e., systematic
purchases and withdrawals) and purchases made after shares are automatically
sold to pay Merrill Lynch’s account maintenance fees are not eligible for
reinstatement.
CDSC
Waivers on A and C Shares available at Merrill Lynch
•Death
or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the fund’s
prospectus.
•Return
of excess contributions from an IRA Account.
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
pursuant to the Internal Revenue Code.
•Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by
Merrill Lynch.
•Shares
acquired through a right of reinstatement.
•Shares
held in retirement brokerage accounts, that are exchanged for a lower cost share
class due to transfer to certain fee based accounts or platforms (applicable to
A and C shares only).
•Shares
received through an exchange due to the holdings moving from a Merrill Lynch
affiliated investment advisory program to a Merrill Lynch brokerage
(non-advisory) account pursuant to Merrill Lynch’s policies relating to sales
load discounts and waivers.
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation
& Letters of Intent
•Breakpoints
as described in this prospectus.
•Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as
described in the fund's prospectus will be automatically calculated based on the
aggregated holding of fund family assets held by accounts (including 529 program
holdings, where applicable) within the purchaser’s household at Merrill Lynch.
Eligible fund family assets not held at Merrill Lynch may be included in the ROA
calculation only if the shareholder notifies his or her financial advisor about
such assets.
•Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated
purchases within a fund family, through Merrill Lynch, over a 13-month period of
time (if applicable).
Sales
Charge Reductions and Waivers available through Morgan Stanley Wealth
Management
Effective
July 1, 2018, shareholders purchasing fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible only for the
following front-end sales charge waivers with respect to A Class shares, which
may differ from and may be more limited than those disclosed elsewhere in this
fund’s prospectus or SAI.
•Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.
•Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s
account linking rules.
•Shares
purchased through reinvestment of dividends and capital gains distributions when
purchasing shares of the same fund.
•Shares
purchased through a Morgan Stanley self-directed brokerage account.
•C
Class (i.e., level-load) shares that are no longer subject to a contingent
deferred sales charge and are converted to A Class shares of the same fund
pursuant to Morgan Stanley Wealth Management’s share class conversion
program.
•Shares
purchased from the proceeds of redemptions within the American Century
Investments family of mutual funds, provided (i) the repurchase occurs within 90
days following the redemption, (ii) the redemption and purchase occur in the
same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Sales
Charge Reductions and Waivers Available through Oppenheimer & Co. Inc.
(OPCO)
Effective
February 26, 2020, shareholders purchasing fund shares through an OPCO platform
or account are eligible only for the following load waivers (front-end sales
charge waivers and contingent deferred, or back-end, sales charge waivers) and
discounts, which may differ from those disclosed elsewhere in this fund's
prospectus or SAI.
Front-end
Sales Load Waivers on Class A Shares available at OPCO
•Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health
savings accounts) and trusts used to fund those plans, provided that the shares
are not held in a commission-based brokerage account and shares are held for the
benefit of the plan.
•Shares
purchased by or through a 529 Plan.
•Shares
purchased through an OPCO affiliated investment advisory program.
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family).
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (known as Rights of
Restatement).
•A
shareholder in the fund's C Class shares will have their shares converted at net
asset value to A Class shares (or the appropriate share class) of the fund if
the shares are no longer subject to a CDSC and the conversion is in line with
the policies and procedures of OPCO.
•Employees
and registered representatives of OPCO or its affiliates and their
family members.
•Directors
or Trustees of the fund, and employees of the fund's investment adviser or any
of its affiliates, as described in this prospectus.
CDSC
Waivers on A and C Shares available at OPCO
•Death
or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the fund's
prospectus.
•Return
of excess contributions from an IRA.
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching the qualified age based on applicable IRS
regulations as described in the prospectus.
•Shares
sold to pay OPCO fees but only if the transaction is initiated by
OPCO.
•Shares
acquired through a right of reinstatement.
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation &
Letters of Intent
•Breakpoints
as described in this prospectus.
•Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser's household at OPCO. Eligible fund family
assets not held at OPCO may be included in the ROA calculation only if the
shareholder notifies his or her financial advisor about such
assets.
Sales
Charge Reductions and Waivers Available through PFS Investments Inc.
(PFSI)
Policies
Regarding Fund Purchases Held on the PSS Platform
The
following information supersedes all prior information with respect to
transactions and positions held in fund shares purchased through PFSI and held
on the mutual fund platform of its affiliate, Primerica Shareholder Services
(“PSS”). Clients of PFSI (also referred to as “shareholders”) purchasing fund
shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which
can differ from share classes, discounts and waivers described elsewhere in this
prospectus or the related statement of additional information (“SAI”) or through
another broker-dealer. In all instances, it is the shareholder’s responsibility
to inform PFSI at the time of a purchase of all holdings of American Century
Funds on the PSS platform, or other facts qualifying the purchaser for discounts
or waivers. PFSI may request reasonable documentation of such facts and
condition the granting of any discount or waiver on the timely receipt of such
documents. Shareholders should contact PSS if they have questions regarding
their eligibility for these discounts and waivers.
Share
Classes
a.Class
A shares are available to non-retirement accounts, individual retirement
accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types.
b.Class
C shares are available only to accounts with existing Class C share holdings
Breakpoints
a.Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are
purchasing.
Rights
of Accumulation (“ROA”)
a.The
applicable sales charge on a purchase of Class A shares is determined by taking
into account all share classes (except any assets held in group retirement
plans) of American Century Funds held by the shareholder on the PSS Platform.
The inclusion of eligible fund family assets in the ROA calculation is dependent
on the shareholder notifying PFSI of such assets at the time of calculation.
Shares of money market funds are included only if such shares were acquired in
exchange for shares of another American Century Fund purchased with a sales
charge. No shares of American Century Funds held by the shareholder away from
the PSS platform will be granted ROA with shares of any American Century Fund
purchased on the PSS platform.
b.Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the
PSS platform will be defaulted to plan-level grouping for purposes of ROA, which
allows each participating employee ROA with all other eligible shares held in
plan accounts on the PSS platform. At any time, a participating employee may
elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing
employee ROA with her other eligible holdings on the PSS platform, but not with
all other eligible participant holdings in the plan. Eligible shares held in
plan accounts electing shareholder-level grouping will not be available for
purposes of ROA to plan accounts electing plan-level grouping.
c.ROA
is determined by calculating the higher of cost minus redemptions or current
market value (current shares x NAV).
Letter
of Intent (“LOI”)
a.By
executing a LOI, shareholders can receive the sales charge and breakpoint
discounts for purchases shareholders intend to make on the PSS platform over a
13-month period, beginning from the date PSS receives the LOI. The purchase
price of the LOI is determined by calculating the higher of cost or market value
of qualifying holdings at LOI initiation in combination with the dollar amount
the shareholder intends to invest over a 13-month period to arrive at total
investment for purposes of determining any breakpoint discount and the
applicable front-end sales charge. Each purchase the shareholder makes during
that 13-month period will receive the sales charge and breakpoint discount that
applies to the projected total investment.
b.Only
holdings of American Century Funds on the PSS platform are eligible for
inclusion in the LOI calculation and the shareholder must notify PFSI of all
eligible assets at the time of calculation.
c.Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the
LOI will not reduce any sales charge previously paid. Sales charges will be
automatically adjusted if the total purchases required by the LOI are not
met.
d.If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the
PSS platform has elected to establish or change ROA for the accounts associated
with the plan to a plan-level grouping, LOIs will also be at the plan-level and
may only be established by the employer. LOIs are not available to PDP IRA plans
on the PSS platform with plan-level grouping for purposes of ROA but are
available to any participating employee that elects shareholder-level grouping
for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
a.Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment.
b.Shares
purchased with the proceeds of redeemed shares of the same fund family so long
as the following conditions are met: 1) the proceeds are from the sale of shares
within 90 days of the purchase, 2) the sale and purchase are made in the same
share class and the same account or the purchase is made in an individual
retirement account with proceeds from liquidations in a non-retirement account,
and 3) the redeemed shares were subject to a front-end or deferred sales load.
Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after
shares are automatically sold to pay account maintenance fees are not eligible
for this sales charge waiver.
c.Shares
exchanged into Class A shares from another share class so long as the exchange
is into the same fund and was initiated at the discretion of PFSI. PFSI is
responsible for any remaining CDSC due to the fund company, if applicable. Any
future purchases are subject to the applicable sales charge as disclosed in the
prospectus.
Raymond
James & Associates, Inc., Raymond James Financial Services & each
entity’s affiliates (Raymond James)
Effective
March 1, 2019, shareholders purchasing fund shares through a Raymond James
platform or account, or through an introducing broker-dealer or independent
registered investment adviser for which Raymond James provides trade execution,
clearance, and/or custody services, will be eligible only for the following load
waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed
elsewhere in this fund’s prospectus or SAI.
Front-end
sales load waivers on Class A shares available at Raymond James
•Shares
purchased in an investment advisory program.
•Shares
purchased within the same fund family through a systematic reinvestment of
capital gains distributions and dividend reinvestment when purchasing shares of
the same fund (but not any other fund within the American Century Investments
fund family).
•Employees
and registered representatives of Raymond James or its affiliates and their
family members as designated by Raymond James.
•Shares
purchased from the proceeds of redemptions within the American Century
Investments fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same
account, and (3) redeemed shares were subject to a front-end or deferred sales
load (known as Rights of Reinstatement).
•A
shareholder in the fund’s C Class shares will have their shares converted at net
asset value to A Class shares (or the appropriate share class) of the fund if
the shares are no longer subject to a CDSC and the conversion is in line with
the policies and procedures of Raymond James.
CDSC
waivers on A and C Class shares available at Raymond James
•Death
or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the fund’s
prospectus.
•Return
of excess contributions from an IRA Account.
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching the qualified age based on applicable IRS
regulations as described in the fund’s prospectus.
•Shares
sold to pay Raymond James fees but only if the transaction is initiated by
Raymond James.
•Shares
acquired through a right of reinstatement.
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation,
and/or letters of intent
•Breakpoints
as described in this prospectus.
•Rights
of accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of American Century
Investments fund family assets held by accounts within the purchaser’s household
at Raymond James. Eligible American Century Investments fund family assets not
held at Raymond James may be included in the calculation of rights of
accumulation only if the shareholder notifies his or her financial advisor about
such assets.
•Letters
of intent which allow for breakpoint discounts based on anticipated purchases
within a fund family, over a 13-month time period. Eligible fund family assets
not held at Raymond James may be included in the calculation of letters of
intent only if the shareholder notifies his or her financial advisor about such
assets.
Sales
Charge Reductions and Waivers Available through Stifel, Nicolaus & Company,
Incorporated (Stifel)
Effective
July 1, 2020, shareholders purchasing fund shares through a Stifel platform or
account or who own shares for which Stifel or an affiliate is the broker-dealer
of record are eligible for the following additional sales charge waiver.
Front-end
Sales Load Waiver on Class A Shares
•Class
C shares that have been held for more than seven (7) years will be converted to
Class A shares of the same Fund pursuant to Stifel’s policies and
procedures
All
other sales charge waivers and reductions described elsewhere in the fund’s
prospectus or SAI still apply.
Notes
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 August 31, 2022.
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
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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. 811-03706
CL-PRS-91750 2301
