Preserve Long-Term Purchasing Power. Inflation-Adjusted Bond is actively managed to help investors combat the corrosive effects of domestic inflation through holdings in high-quality, inflation-indexed bonds.
True Inflation Hedge
Inflation-Adjusted Bond invests primarily in inflation-indexed bonds, which are the only securities to guarantee a return equal to the rate of inflation. Shareholders who reinvest their quarterly distributions will generally keep pace with inflation as dividends fluctuate in relation to the Consumer Price Index.*
100% Investment Grade
The fund’s veteran management team invests only in investment-grade securities. Treasury inflation-protected securities, or TIPS, account for the majority of the fund’s holdings and are backed by the full faith and credit of the U.S. government.
Alternative Asset Class
Historically, there has been low correlation between the performance of Inflation-Adjusted Bond and the performance of stocks and high-yield bonds.1 As a result, the fund has the potential to outperform when stocks and higher risk bonds are out of favor.
A Note About Risk
Investments in fixed income securities are subject to the risks associated with debt securities including credit, price and interest rate risk. In certain interest rate environments, such as when real interest rates are rising faster than nominal interest rates, inflation-protected securities with similar durations may experience greater losses than other fixed income securities. Interest payments on inflation-protected debt securities will fluctuate as the principal and/or interest is adjusted for inflation and can be unpredictable. 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.
1As of 9/30/2013. Based on a comparison to the S&P 500® Index and the Barclays U.S. High Yield 2% Issuer Capped Bond Index since 9/30/1997.
Past performance is no guarantee of future results.
Jim Platz, CFA
CFA, Vice President, Senior Portfolio Manager
Vice President, Senior Portfolio Manager
Robert V. Gahagan
Senior Vice President, Senior Portfolio Manager
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 Reuters Company, subject to the following: Copyright 2015 © 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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