Preserve Capital, Fight Taxes. Intermediate-Term Tax-Free Bond Fund helps preserve capital and generate income free of federal taxes through actively managed positions in investment-grade, intermediate-term municipal bonds.
The Bond Market’s Sweet Spot
Intermediate-Term Tax Free Bond invests in the market’s sweet spot, intermediate-term bonds. Historically these securities with two- to 10-year maturities have delivered competitive returns with less risk than long-term bonds.1
Intermediate-Term Tax-Free Bond’s performance history illustrates its appeal as a foundational core holding in a diversified portfolio. Investors who held the fund for two years were rewarded with a positive return 100% of the time since the fund’s inception in 1987.2
The management team actively seeks to avoid exposure to the Alternative Minimum Tax (AMT). Since 2002 the fund’s monthly dividends have been truly federal tax free with no exposure to the AMT.
A Note About Risk
Interest rate changes are among the most significant factors affecting bond return. Generally, as interest rates rise, the value of the securities held in the fund will decline. The opposite is true when interest rates decline. Investment income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax (AMT). Capital gains are not exempt from state and federal income tax. There is no guarantee that the investment objectives will be met. Dividends and yields represent past performance and there is no guarantee that they will continue to be paid.
Past performance is no guarantee of future results.
Data reflects past performance for Investor Class shares, assumes reinvestment of dividends and capital gains and is no guarantee of future results. Current performance may be higher or lower than data shown. Investment return and principal value fluctuates. Redemption value may be more or less than original cost. Obtain performance data current to the most recent month end. For additional share class information, consult the prospectus. Extraordinary performance is attributable in part to unusually favorable market conditions and may not be repeated or consistently achieved in the future.
W2 If your account falls below the minimum balance, you will be notified and given 90 days to meet the minimum. If the deadline is not met, American Century Investments may redeem the shares in the account and send the proceeds to the address of record.
Expense ratios provided are the funds' total annual operating expense ratios, gross of any fee waivers or expense reimbursements. Expense ratios are as of the funds' most current prospectus.
Lipper rankings are based on average annual total returns. Portions of the mutual fund performance information contained on this page were supplied by Lipper, a Thomson Reuters Company, subject to the following: Copyright 2016 © Thomson Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Performance data is preliminary and subject to revision. Rankings are based on all classes available within the classification as of the date shown. Rankings are based only on the universe shown.
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Source: Barclays Indices