American Century Inflation Protection
Objective And StrategyObjective
Long-term total return to protect against U.S. inflation.
Invests substantially all assets in invest-grade debt securities. Normally invests over 50% of assets in inflation-adjusted debt securities designed to protect the purchasing power of the money invested: Treasury inflation-indexed securities (TIPS), and inflation-indexed securities issued by U.S. government agencies and instrumentalities and potentially some corporations and foreign governments. Fund managers are not limited to a specific weighted average maturity range in order to adjust to market conditions, inflation rate and periods of rising or falling interest rates. For investors seeking inflation protection and diversification in their bond portfolio.
Tax Inefficient Fund
* This portfolio can leverage or use leveraged instruments or derivatives. Portfolios that use leverage, that is, borrow money, are subject to the risk that the cost of borrowing money to leverage will exceed the returns for the securities purchased or that the securities purchased may actually go down in value. Thus the portfolio's net asset value can decrease more quickly than if the portfolio had not borrowed. Portfolios that use leveraged instruments or derivatives such as futures, options and swap agreements, may expose the portfolio to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The more a portfolio invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments.