American Century plans to offer Short Duration Strategic Income Fund

By Toni Weeks

San Luis Obispo, Calif., May 1 - American Century Investment Trust announced its plans to offer a new fixed-income fund, the Short Duration Strategic Income Fund. The fund is expected to launch in late July.

According to an N-1A filing with the Securities and Exchange Commission, the fund will seek income with long-term capital appreciation as a secondary objective by investing in both investment-grade and high-yield non-money-market debt securities.

Securities may include corporate bonds and notes, government securities, securities backed by mortgages or other assets, collateralized loan obligations and bank loans, among others, and may be denominated in U.S. or foreign currencies, including emerging markets debt securities. The weighted average duration of the fund's portfolio must be three years or shorter.

The portfolio management team is comprised of Kevin Akioka, Jeffrey L. Houston, Robert V. Gahagan, Brian Howell and Marge Karner.

The fund will offer class A, class C, class R, class R6, investor class and institutional class shares. Ticker symbols have not been set.

Class A shares will be subject to a sales load of 2.25%, and class C shares will incur a maximum deferred sales load of 1%.

The management fee will be 0.54% for institutional class shares and 0.49% for class R6 shares. All other share classes will be assessed a management fee of 0.74%. Including these and the effects of a fee waiver agreement with the investment adviser, total annual fund operating expenses are expected to be 0.66% for investor class, 0.46% for institutional class, 0.91% for class A, 1.66% for class C, 1.16% for class R and 0.41% for class R6 shares.

Kansas City, Mo.-based American Century Investment Management, Inc. will serve as the investment adviser.

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