YTD Total Return As of 04/15/2024 | -1.64% |
Nav As of 04/15/2024 | $10.22 |
Nav Change (-$0.04) | -0.39% |
The fund is designed to help preserve purchasing power by investing primarily in a portfolio of inflation-linked securities.
Seeking to Hedge Inflation
Invests in Treasury inflation-protected securities (TIPS)¹ and complements them with credits, securitized issues², non-U.S. bonds, and inflation-linked swaps³.
Managing TIPS Portfolios for 25+ Years
Features inflation-fighting expertise honed over more than 25 years.
Enhanced Return Potential
Seeks to outperform by complementing investments in TIPS with conventional bonds linked to inflation through inflation swaps.
Stay Ahead of Inflation
Market insights, behavioral tips and portfolio builders to help bring stress levels down as prices rise.
Key Facts
Investment Objective | Seeks to provide total return and inflation protection consistent with investment in inflation-indexed securities |
Inception Date | 02/10/1997 |
Morningstar Category | Inflation-Protected Bond |
Benchmark | Bloomberg U.S. Treasury Inflation Protected Securities (TIPS) IndexA |
Total Assets | $2,715,072,710 As of 03/31/2024 |
Total Holdings | 110 As of 02/29/2024 |
Distribution Frequency | Quarterly |
Morningstar Overall Rating Based on risk-adjusted return | Out of 203 funds. Inflation-Protected Bond category As of 03/31/2024 |
Fees
| Gross Expense Ratio | 0.51% |
| All Accounts With $100 monthly automatic investment | $500 |
| IRA & CESAs With no automatic investment | $1,000 |
| All other accounts With no automatic investment | $2,500 |
Trading Information
| Ticker | ACITX |
| CUSIP | 025081704 |
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance, placing more emphasis on downward variations and rewarding consistent performance.
The fund generally expects to declare distributions from net income, if any, quarterly, but may pay less frequently.
Fees
| Gross Expense Ratio | 0.51% |
| All Accounts With $100 monthly automatic investment | $500 |
| IRA & CESAs With no automatic investment | $1,000 |
| All other accounts With no automatic investment | $2,500 |
Trading Information
| Ticker | ACITX |
| CUSIP | 025081704 |
Data reflects past performance, 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. Returns less than one year are not annualized.
Average annual total returns illustrate the annual compounded returns that would have produced the cumulative total return if the fund's performance had remained constant throughout the period indicated. Returns for periods less than one year are not annualized. For periods prior to the inception of a class, performance is for the oldest class, restated with applicable fees, if any.
Data reflects past performance, 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. Returns less than one year are not annualized.
Past performance is no guarantee of future results. Investment returns will fluctuate and it is possible to lose money.
FREQUENCY
Quarterly
| Total Paid | Ordinary Dividends | Reinvest Price | |
|---|---|---|---|
| 03/19/2024 | -- | -- | $10.29 |
| 12/19/2023 | $0.3387 | $0.3387 | $10.39 |
| 09/19/2023 | -- | -- | $10.39 |
| 06/20/2023 | $0.1228 | $0.1228 | $10.63 |
| Overall | Out of 203 funds. Inflation-Protected Bond category |
| 3 Year | Out of 203 funds |
| 5 Year | Out of 195 funds |
| 10 Year | Out of 139 funds |
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance, placing more emphasis on downward variations and rewarding consistent performance.
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10- year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
| Risk Measures | |
|---|---|
| Alpha | -0.31 |
| Beta | 1.02 |
| R-Squared | 0.99 |
| Standard Deviation | 7.30 |
| Sharpe Ratio | -0.51 |
Relative to the Bloomberg U.S. Treasury Inflation Protected Securities (TIPS) Index
Past performance is no guarantee of future results. Investment returns will fluctuate and it is possible to lose money.
As of 03/31/2024
| Government | 94% |
| Securitized | 4% |
| Credit | 2% |
| Cash & Cash Equivalents | -2% |
Due to rounding, these values may exceed 100%.
Negative weights may be due to open security or capital stock
trades at period end and/or unrealized loss on derivative positions as a percent of net assets at period end.
As of 03/31/2024
| US 5YR NOTE (CBT) Jun24 | 10.53% |
| United States Treasury Inflation Indexed Bonds 0.13 04/15/2027 | 4.72% |
| United States Treasury Inflation Indexed Bonds 0.13 10/15/2025 | 4.55% |
| United States Treasury Inflation Indexed Bonds 0.63 01/15/2026 | 4.39% |
| United States Treasury Inflation Indexed Bonds 0.50 01/15/2028 | 3.79% |
| United States Treasury Inflation Indexed Bonds 0.63 07/15/2032 | 3.73% |
| United States Treasury Inflation Indexed Bonds 1.38 07/15/2033 | 3.36% |
| United States Treasury Inflation Indexed Bonds 0.13 07/15/2031 | 3.31% |
| United States Treasury Inflation Indexed Bonds 0.13 01/15/2031 | 3.30% |
| United States Treasury Inflation Indexed Bonds 0.13 01/15/2032 | 3.04% |
| % of Top Portfolio Holdings | 44.72% |
Due to rounding, these values may exceed 100%.
Negative weights may be due to open security or capital stock
trades at period end and/or unrealized loss on derivative positions as a percent of net assets at period end.
As of 03/31/2024
| U.S. Government | 95.34% |
| AAA | 0.33% |
| AA | 0.76% |
| A | 2.48% |
| BBB | 0.83% |
| Non Rated | 1.81% |
| Cash and Cash Equivalents | -1.55% |
Due to rounding, these values may exceed 100%
Negative weights may be due to open security or capital stock trades at period end and/or unrealized loss on derivative positions as a percent of net assets at period end.
As of 03/31/2024
| 0 - 1 Years | 4.20% |
| 1 - 3 Years | 26.24% |
| 3 - 5 Years | 21.55% |
| 5 - 10 Years | 32.06% |
| 10 - 20 Years | 8.86% |
| 20 - 30 Years | 7.09% |
Due to rounding, these values may exceed 100%
Negative weights may be due to open security or capital stock trades at period end and/or unrealized loss on derivative positions as a percent of net assets at period end.
6.99 Years Weight Average Life to Maturity
As of 03/31/2024
As of 03/31/2024
| 0 - 2.5% | 86.95% |
| 2.5 - 3% | 1.83% |
| 3 - 3.5% | 1.39% |
| 3.5 - 4% | 4.11% |
| 4 - 4.5% | 0.09% |
| 4.5 - 5% | 0.73% |
| 5 - 5.5% | 2.18% |
| 5.5 - 6% | 0.47% |
| 6 - 6.5% | 1.01% |
| 6.5 - 7% | 0.15% |
| 7 - 7.5% | 0.64% |
| 7.5 - 8% | 0.44% |
| 8 - 8.5% | 0.01% |
Due to rounding, these values may exceed 100%
Negative weights may be due to open security or capital stock trades at period end and/or unrealized loss on derivative positions as a percent of net assets at period end.
1.10% Average Coupon
As of 03/31/2024
| 0 - 2 Years | 24.04% |
| 2 - 4 Years | 24.26% |
| 4 - 6 Years | 13.39% |
| 6 - 8 Years | 17.32% |
| 8 - 10 Years | 6.91% |
| 10 - 15 Years | 0.04% |
| 15+ Years | 14.04% |
Due to rounding, these values may exceed 100%
Negative weights may be due to open security or capital stock trades at period end and/or unrealized loss on derivative positions as a percent of net assets at period end.
6.95 Years Average Effective Duration
How To Buy
Individual Investors: Open a new account or use an existing account registration
Open New Account Log In NowFinancial Advisors: Contact your wholesaler at 1-800-345-6488 for more information
The advisor has agreed to waive the G Class's management fee in its entirety. The advisor expects this fee waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Trustees.
Inflation, sometimes referred to as headline inflation, reflects rising prices for consumer goods and services, or equivalently, a declining value of money. Core inflation excludes food and energy prices, which tend to be volatile. It is the opposite of deflation (see Deflation).
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.
The prospectus contains very important information about the characteristics of the underlying security and potential tax implications of owning this fund.
Please see the prospectus for details about sales charges.
The gross expense ratio is the fund's total annual operating costs, expressed as a percentage of the fund's average net assets for a given time period. It is gross of any fee waivers or expense reimbursement. The net expense ratio is the expense ratio after the application of any waivers or reimbursement. This is the actual ratio that investors paid during the fund's most recent fiscal year. Please see the prospectus for more information.
Investor Class Shares: Minimum initial investment is $1,000 for IRA and CESA accounts, and $2,500 for non-retirement accounts, but these minimums are waived with an initial investment of at least $500 per account and automatic investments of at least $100 per month. Non-Retirement Accounts: If your account balance falls below the minimum, or if you cancel your automatic monthly investment plan prior to reaching the minimum, American Century Investments may redeem the account and send the proceeds to you. Prior to doing so, we will notify you and give you 90 days to meet the minimum or reinstate your automatic monthly investment plan.
Only Investor Class shares are made available to investors directly. Advisor, A, C, I, and Y Classes of shares are only available for purchase by institutions or other financial intermediaries. R, R5, and R6 Classes of shares are only available for purchase by group employer-sponsored retirement plans. Review definitions and minimums for all share classes.
TIPS are a special type of U.S. Treasury security designed to address a fundamental, long-standing fixed-income market issue: that the fixed interest payments and principal values at maturity of most fixed-income securities don't adjust for inflation. TIPS interest payments and principal values do. The adjustments include upward or downward changes to both principal and coupon interest based on inflation. TIPS are inflation-indexed; that is, tied to the U.S. government's Consumer Price Index (CPI). At maturity, TIPS are guaranteed by the U.S. government to return at least their initial $1,000 principal value, or that principal value adjusted for inflation, whichever amount is greater. In addition, as their principal values are adjusted for inflation, their interest payments also adjust.
Securitized issues consist of contractual debt obligations such as residential mortgages, auto loans or credit card debt (among others). Cash flows from these debt obligations are packaged as securities and sold to investors.
A derivative where an income stream that is tied to the rate of inflation is exchanged for an income stream with a fixed interest rate.
Consists of Treasury inflation-protected securities issued by the U.S. Treasury with a remaining maturity of one year or more.
Alpha: Typically used to represent the value added or subtracted by active investment management strategies. It shows how an actively managed investment portfolio performed compared with the expected portfolio returns produced simply by benchmark volatility (beta) and market changes. A positive alpha shows that an investment manager has been able to capture more of the upside movement in the benchmark while softening the downswings. A negative alpha means that the manager's strategies have caught more benchmark downside than upside.
Beta: Standard measurement of potential investment risk and return. It shows how volatile a security's or an investment portfolio's returns have been compared with their respective benchmark indices. A benchmark index's beta always equals 1. A security or portfolio with a beta greater than 1 had returns that fluctuated more, both up and down, than those of its benchmark, while a beta of less than 1 indicates less fluctuation than the benchmark.
R-Squared: Portfolio performance and risk measure that indicates how much of a portfolio's performance fluctuations were attributable to movements in the portfolio's benchmark index. R-squared can range from 0-100%. An r-squared of 100% indicates that all portfolio performance movements were attributable to movements in the benchmark index-they correlate perfectly to the benchmark. Conversely, an r-squared of 0% indicates that there is no correlation between the performance movements of the portfolio and the benchmark.
Standard Deviation: Statistical measurement of variations from the average. In financial literature, it's often used to measure risk, when risk is measured or defined in terms of volatility. In general, more risk means more volatility, and more volatility means a higher standard deviation-there's more variation from the average of the data being measured. In this context, reducing risk means seeking lower standard deviation.
Sharpe Ratio: Simple but useful risk-adjusted measure of returns, showing the amount of return (reward) earned per unit of risk from any asset with a risk component. The higher the Sharpe Ratio, the better, theoretically, the portfolio's risk-adjusted performance-portfolios with higher Sharpe Ratios tend to provide more return for the same amount of risk. The Sharpe Ratio is useful, but not perfect. It can be skewed by irregular return factors that can upset the standard deviation calculation, and it doesn't take into account the market risk (beta) exposure of the portfolio.
Investment Blend: Reflects the blend of securities owned by a fund. For example, the percentage of foreign or domestic stocks held by an equity fund or the percentage of corporate and government securities owned by a bond fund. The U.S./Foreign Convertibles grouping includes Convertible Bonds, Equity Linked Securities and Convertible Preferred securities.
Top Holdings: This value represents the top holdings included in the portfolio on a percent of assets basis. Equity holdings are grouped to include common shares, depository receipts, rights and warrants issued by the same company. Holdings are rounded to the nearest whole number, which may result in the display of less than ten holdings.
Quality: Describes the portfolio of the fund in terms of the quality ratings of the securities it holds. Cash and cash equivalents include payable amounts related to securities purchased but not settled at period end. Credit quality ratings on underlying securities of a fund are obtained from three Nationally Recognized Statistical Rating Organizations ("NRSROs"), Standard & Poor's, Moody's and Fitch. Ratings are converted to the equivalent Standard & Poor's rating category for purposes of presentation. The median rating is used for securities rated by all three NRSROs. The common rating is used when two of the three NRSROs agree. The lower rating is used when only two NRSROs rate a security. A "nonrated" designation is assigned when a public rating is not available for a security. This designation does not necessarily indicate low credit quality. The letter ratings are provided to indicate the credit worthiness of the underlying bonds in the portfolio and generally range from AAA (highest) to D (lowest). Includes payable amounts related to securities purchased but not settled at period end.
Maturity: Describes the portfolio of the fund in terms of the different maturities of the securities it holds.
Weighted Average Life to Maturity (WALM): Is a measure of the sensitivity of a fixed income portfolio to interest rate changes. WALM is the average time in years to receive the principal repayments. Accordingly, WALM reflects how a portfolio would react to deteriorating credit or tightening liquidity conditions.
Coupon: Describes the portfolio of the fund in terms of the different coupons of the securities it holds.
Duration: Describes the portfolio of the fund in terms of the different durations of the securities it holds.
For detailed descriptions of indices or investing terms referenced above, refer to our glossary.
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Source: Bloomberg Index Services Ltd