KANSAS
CITY, Mo., July 18, 2024 /PRNewswire/ -- American
Century Investments, the $250 billion
global asset manager*, expands its investment capabilities with the
launch of its first California
municipal bond exchange traded fund (ETF). American Century
California Municipal Bond ETF (CATF) is now listed on the New
York Stock Exchange (NYSE) and joins the asset manager's lineup of
active ETFs.
"American Century has managed municipal bonds for California investors for over 40 years and
we're excited to leverage our deep history in California-specific strategies across the
investment grade and high yield markets with the launch of CATF,"
said Joe Gotelli, senior portfolio
manager, head of the Municipal Markets team. "We are driven by the
needs of our clients and eager to provide an offering to
California residents that takes
advantage of opportunities across the credit and
duration1 spectrum."
California Municipal Bond ETF
CATF is actively managed and seeks high current income that is
exempt from federal and California
income taxes. The fund primarily invests in investment-grade debt
securities but may invest in high-yield securities. A high-yield
security is one that has been rated below investment-grade or
determined by the investment advisor to be of similar quality,
including bonds that are in technical or monetary default. It has a
gross expense ratio of 0.27%.
"CATF is a natural extension of our municipal bond offerings and
complements our existing ETF, American Century Diversified
Municipal Bond ETF (TAXF)," said Gotelli. "It utilizes the same
team, philosophy and process that we employ across our California mutual funds with the benefits of
the ETF vehicle."
The fund is managed by Gotelli and Portfolio Manager
Alan Kruss. Gotelli and the
Municipal Markets team are primarily based in California. The municipal bond team at
American Century Investments oversees $8.2
billion in assets under management**.
American Century Investments introduced its ETF program in 2018.
The comprehensive ETF lineup is designed to help investors seek
better outcomes across market cycles.
About American Century Investments
American Century Investments is a leading global asset manager
focused on delivering investment results and building long-term
client relationships while supporting breakthrough medical
research. Founded in 1958, American Century Investments' 1,400
employees serve financial professionals, institutions, corporations
and individual investors from offices in Kansas City, Mo.; New York; Los
Angeles; Santa Clara,
Calif.; Portland, Ore.;
London; Frankfurt, Germany; Hong Kong; and Sydney. Jonathan S.
Thomas is president and chief executive officer, and
Victor Zhang serves as chief
investment officer. Delivering investment results to clients
enables American Century Investments to distribute over 40% of its
dividends to the Stowers Institute for Medical Research, a
500-person, nonprofit basic biomedical research organization. The
Institute owns more than 40% of American Century Investments and
has received dividend payments of more than $2 billion since 2000. For more information about
American Century Investments, visit www.americancentury.com.
*Assets under supervision as of 7/4/2024.
**Assets under management as of 7/10/24.
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.
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.
You should consider the fund's investment objectives,
risks, charges and expenses carefully before you invest. The fund's
prospectus or summary prospectus, which can be obtained by visiting
americancentury.com, contains this and other information about the
fund, and should be read carefully before investing.
Because the fund invests primarily in California municipal securities, its yield and
share price will be affected by political and economic developments
within the State of
California.
There is no guarantee that all of the fund's income will be
exempt from federal, California
state or local income taxes. The portfolio managers are permitted
to invest the fund's assets in debt securities with interest
payments that are subject to federal income tax, California state tax, local income tax and/or
the federal alternative minimum tax. Capital gains are not exempt
from state and federal income tax.
The lower rated securities in which the fund may invest in are
subject to greater credit risk, default risk and liquidity
risk.
Generally, as interest rates rise, the value of the bonds held
in the fund will decline. The opposite is true when interest rates
decline.
Exchange Traded Funds (ETFs): Foreside Fund Services, LLC –
Distributor, not affiliated with American Century Investment
Services, Inc.
Mutual Funds: American Century Investment Services, Inc.,
Distributor.
©2024 American Century Proprietary Holdings, Inc. All rights
reserved.
1 The duration of a financial asset that consists of
fixed cash flows, such as a bond, is the weighted average of the
times until those fixed cash flows are received.
Contact:
|
Laura Kouri
|
|
(816)
340-4710
|
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SOURCE American Century Investments