2019 Qualified Dividend Income

Qualified dividends are dividends received by a fund from a stock, provided that the fund has held the stock for a required holding period. Mutual funds may pass through to investors any qualified dividends it receives. At the fund level, these may be applied to ordinary income and/or short-term capital gains distributions.

Qualified dividends are taxed at the long-term capital gain rates. To qualify for these reduced rates, you must own the mutual fund's shares for a period of 61 days or longer. That period must include the date the fund distributed the dividends.

The table below reflects the percentage of each fund's distributions that are considered qualified.

Mutual Funds

Fund Name Percentage to Apply to Ordinary Dividends*
AC Alternatives® Disciplined Long Short Fund8 100.00%
AC Alternatives® Emerging Opportunities Total Return Fund1 0.00%
AC Alternatives® Equity Market Neutral Fund9 0.00%
AC Alternatives® Income Fund 13.24%
AC Alternatives® Market Neutral Value Fund 100.00%
Adaptive Equity Fund10 100.00%
Adaptive Small Cap Fund11 0.00%
All Cap Growth Fund 100.00%
Balanced Fund 57.65%
Capital Value Fund7 100.00%
Core Equity Plus Fund12 100.00%
Disciplined Growth Fund 62.15%
Emerging Markets Debt Fund 0.00%
Emerging Markets Fund 100.00%
Emerging Markets Small Cap Fund 100.00%
Equity Growth Fund 100.00%
Equity Income Fund 55.18%
Focused Dynamic Growth Fund 0.00%
Focused Global Growth Fund 100.00%
Focused International Growth Fund 0.00%
Global Gold Fund 100.00%
Global Real Estate Fund 16.85%
Global Small Cap Fund 0.00%
Growth Fund 100.00%
Heritage Fund 0.00%
Income & Growth Fund 100.00%
International Core Equity Fund13 100.00%
International Discovery Fund14 0.00%
International Growth Fund 100.00%
International Opportunities Fund 100.00%
International Value Fund 100.00%
Large Company Value Fund 100.00%
Mid Cap Value Fund 100.00%
Multi-Asset Income Fund 19.66%
Multi-Asset Real Return Fund 16.64%
Non-U.S. Intrinsic Value Fund 63.05%
NT Core Equity Plus Fund15 100.00%
NT Disciplined Growth Fund 100.00%
NT Emerging Markets Fund 72.27%
NT Equity Growth Fund 85.59%
NT Global Real Estate Fund 12.70%
NT Growth Fund 70.69%
NT Heritage Fund 89.27%
NT International Growth Fund 87.13%
NT International Small-Mid Cap Fund 51.22%
NT International Value Fund 77.60%
NT Large Company Value Fund 100.00%
NT Mid Cap Value Fund 88.90%
NT Small Company Fund16 70.29%
One Choice® 2020 Portfolio 52.32%
One Choice® 2025 Portfolio 54.23%
One Choice® 2030 Portfolio 60.54%
One Choice® 2035 Portfolio 66.82%
One Choice® 2040 Portfolio 71.67%
One Choice® 2045 Portfolio 80.27%
One Choice® 2050 Portfolio 88.57%
One Choice® 2055 Portfolio 90.51%
One Choice® 2060 Portfolio 93.33%
One Choice® In Retirement Portfolio 44.99%
One Choice® Portfolio: Aggressive 54.83%
One Choice® Portfolio: Conservative 26.00%
One Choice® Portfolio: Moderate 33.38%
One Choice® Portfolio: Very Aggressive 68.07%
One Choice® Portfolio: Very Conservative 13.79%
Real Estate Fund 3.34%
Select Fund 0.00%
Small Cap Growth Fund 0.00%
Small Cap Value Fund 100.00%
Small Company Fund 100.00%
Strategic Allocation: Aggressive Fund 53.05%
Strategic Allocation: Conservative Fund 36.48%
Strategic Allocation: Moderate Fund 52.41%
Sustainable Equity Fund 91.82%
Ultra® Fund 0.00%
Utilities Fund 100.00%
Value Fund 92.70%

Exchange Traded Funds (ETFs)

Fund Name Percentage to Apply to Ordinary Dividends*
American Century® Diversified Corporate Bond ETF - KORP2 0.00%
American Century® Diversified Municipal Bond ETF - TAXF2 0.00%
American Century® Quality Diversified International ETF - QINT3 78.71%
American Century® STOXX® U.S. Quality Growth ETF - QGRO3, 4, 5 100.00%
American Century® STOXX® U.S. Quality Value ETF - VALQ3, 4, 5 80.96%

Exchange Traded Funds (ETFs) are bought and sold through exchange trading at market price (not NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.

Exchange Traded Funds (ETFs): Foreside Fund Services, LLC - Distributor, not affiliated with American Century Investments Services, Inc.

* Ordinary dividends includes net investment income distributions and short-term capital gain distributions.


On August 23, 2019, the AC Alternatives Emerging Opportunities Total Return Fund liquidated.


This fund is an actively managed ETF that does not seek to replicate the performance of a specified index. To determine whether to buy or sell a security, the portfolio managers consider, among other things, various fund requirements and standards, along with economic conditions, alternative investments, interest rates and various credit metrics. If the portfolio manager considerations are inaccurate or misapplied, the fund's performance may suffer.


This fund is not actively managed and the portfolio managers do not attempt to take defensive positions under any market conditions, including declining markets. The portfolio managers also do not generally add or remove a security from the fund until such security is similarly added or removed from the underlying index. Therefore, the fund may hold an underperforming security or not hold an outperforming security until the underlying index reacts. This may result in underperformance compared to the market generally. In addition, there is no assurance that the underlying index will be determined, composed or calculated accurately. While the index provider provides descriptions of what the underlying index is designed to achieve, the index provider does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the underlying index will be in line with the described index methodology. Gains, losses or costs to the fund caused by errors in the underlying index may therefore be borne by the fund and its shareholders.


STOXX® is a registered trademark of STOXX Ltd.


The STOXX® Index is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland ("STOXX"), Deutsche Börse Group or their licensors, which is used under license. The fund is neither sponsored nor promoted, distributed or in any other manner supported by STOXX, Deutsche Börse Group or their licensors, research partners or data providers and STOXX, Deutsche Börse Group and their licensors, research partners or data providers do not give any warranty, and exclude any liability (whether in negligence or otherwise) with respect thereto generally or specifically in relation to any errors, omissions or interruptions in the STOXX® Index or its data.


On October 25, 2019, the Capital Value Fund merged into the Value Fund.


On January 24, 2020, the AC Alternatives Disciplined Long Short Fund liquidated.


On January 24, 2020, the AC Alternatives Equity Market Neutral Fund liquidated.


On December 12, 2019, the Adaptive Equity Fund liquidated.


On December 12, 2019, the Adaptive Small Cap Fund liquidated.


On December 19, 2019, the Core Equity Plus Fund liquidated.


On January 24, 2020, the International Core Equity Fund liquidated.


On March 22, 2019, the International Discovery Fund merged into the International Opportunities Fund.


On December 19, 2019, the NT Core Equity Plus Fund liquidated.


On December 19, 2019, the NT Small Company Fund liquidated.

Lowered rates for qualified dividends are a result of the 2003 Tax Act and have been made permanent by the American Taxpayer Relief Act of 2012.

IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.

You should consider the fund's investment objectives, risks, and charges and expenses carefully before you invest. The fund's prospectus or summary prospectus, which can be obtained by calling 1.800.345.2021, contains this and other information about the fund, and should be read carefully before investing. Download Prospectus: Mutual Fund or Exchange Traded Fund (ETF). Investments are subject to market risk.