Seek Higher Return Potential, Fight Taxes. High-Yield Municipal Fund is designed to deliver a high level of federal tax-free income and capital appreciation through actively managed positions in high-yield municipal bonds.
Total Return Focus
Rather than chasing yield regardless of the risk being taken, High-Yield Municipal seeks both income and capital appreciation. The management team’s measured, total return orientation has helped the fund deliver competitive yields with less volatility than the average of its peers.*
Professional Credit Analysis
Research is the heart and soul of American Century Investments® bond investment process. This is crucial in the high-yield municipal bond market where our tenured municipal credit research and analysis team brings years of experience to bear in assessing each issuer’s ability to make interest payments and pay par value at maturity.
Our team understands that many investors are concerned about the tax consequences of their investments. To help address income goals and reduce tax liabilities, High-Yield Municipal is managed to limit Alternative Minimum Tax (AMT) exposure as the team searches to invest in securities that will result in a higher yield for the fund.
A Note About Risk
The lower-rated securities in which the fund invests are subject to greater default and liquidity risk, because the issuers of high-yield securities are more sensitive to real or perceived economic changes. 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.
*Based on a comparison with the Morningstar High Yield Municipal category average as of 12/31/2014.
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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