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.

Fund Name Percentage to Apply to Ordinary Dividends*
All Cap Growth Fund 100.00%
Balanced Fund   26.77%
Capital Value Fund 100.00%
Core Equity Plus Fund 100.00%
Disciplined Growth Fund   44.84%
Disciplined Growth Plus Fund 100.00%
Emerging Markets Fund 100.00%
Emerging Markets Value Fund     0.00%
Equity Growth Fund   55.59%
Equity Income Fund   77.48%
Equity Market Neutral Fund     0.00%
Focused Growth Fund 100.00%
Fundamental Equity Fund 100.00%
Global Allocation Fund   62.03%
Global Gold Fund     0.00%
Global Growth Fund 100.00%
Global Real Estate Fund     9.99%
Growth Fund   87.98%
Heritage Fund 100.00%
Income & Growth Fund 100.00%
International Core Equity Fund 100.00%
International Discovery Fund 100.00%
International Growth Fund 100.00%
International Opportunities Fund 100.00%
International Value Fund   77.63%
Large Company Value Fund 100.00%
Legacy Focused Large Cap Fund 100.00%
Legacy Large Cap Fund 100.00%
Legacy Multi Cap Fund 100.00%
Market Neutral Value Fund   58.55%
Mid Cap Value Fund   45.91%
New Opportunities Fund     0.00%
One Choice 2015 Portfolio   36.35%
One Choice 2020 Portfolio   39.08%
One Choice 2025 Portfolio   39.80%
One Choice 2030 Portfolio   42.89%
One Choice 2035 Portfolio   44.95%
One Choice 2040 Portfolio   46.63%
One Choice 2045 Portfolio   49.24%
One Choice 2050 Portfolio   49.51%
One Choice 2055 Portfolio   49.77%
One Choice In Retirement Portfolio   34.21%
One Choice Portfolio: Aggressive   50.35%
One Choice Portfolio: Conservative   36.28%
One Choice Portfolio: Moderate   48.15%
One Choice Portfolio: Very Aggressive 100.00%
One Choice Portfolio: Very Conservative   19.65%
Real Estate Fund     2.73%
Select Fund 100.00%
Small Cap Growth Fund     0.00%
Small Cap Value Fund   17.95%
Small Company Fund 100.00%
Strategic Allocation: Aggressive Fund   40.89%
Strategic Allocation: Conservative Fund   38.88%
Strategic Allocation: Moderate Fund   41.42%
Strategic Inflation Opportunities Fund 100.00%
Ultra Fund 100.00%
Utilities Fund   82.80%
Value Fund 100.00%
Veedot Fund 100.00%
Vista Fund     0.00%

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

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 not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.