“AC Alternatives Disciplined Long Short is a welcome addition because it’s another way to help clients strive to mitigate risk in their portfolios,” said
The fund is the sixth offering in the AC Alternatives lineup, a brand launched by American Century Investments in 2015.
The fund, formerly known as Disciplined Growth Plus and launched in 2011, has been redesigned to be a long short equity product with a variable net exposure to equities that will typically range from 30 percent to 70 percent. It will continue to follow the same investment philosophy with modifications around the amount of the fund that can be long or short, based on a dynamic, market-exposure model. Exposure decisions incorporate short-term market forecast models that have been employed within the firm for decades, enhanced with longer-term market forecasting tools. Previously, Disciplined Growth Plus was a 130/30 fund with 100 percent net exposure to equities. “We revamped the fund to adapt to changing market dynamics and client preferences,” said Chang.
The fund is available in Investor (ACDJX), Institutional (ACDKX), A (ACDQX), C (ACDHX) and R (ACDWX) share classes.
AC Alternatives Disciplined Long Short is managed by Chief Investment Officer, Multi-Asset Strategies & Disciplined Equity
Wittman, who is a senior vice president and senior portfolio manager, joined the firm in 2009. He oversees the portfolio management teams responsible for the company’s disciplined equity and multi-asset portfolios. He serves as a member of the
Long joined American Century in 2005. Previously, she was an analyst for the firm. Prior to that, she worked for
American Century Investments is a leading global asset manager focused on delivering investment results and building long-term client relationships while supporting research that can improve human health and save lives. Founded in 1958, American Century Investments’ 1,300 employees serve investment professionals, institutions, corporations and individual investors from offices in
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.
Alternative mutual funds that hold a variety of non-traditional investments also often employ more complex trading strategies than traditional mutual funds. Each of these different alternative asset classes and investment strategies have unique risks making them more suitable for investors with an above average tolerance for risk.
Fund(s) shown may take short positions. A short position arises when the fund sells stock that it does not own but was borrowed in anticipation that the market price of the stock will decline. If the market price declines, the fund can replace the borrowed stock at a lower price and capture the value represented by the difference between the higher sale price and the lower replacement price. Conversely, if the price of the stock goes up after the fund borrows the stock, the fund will lose money because it will have to pay more to replace the borrowed stock than it received when it sold the stock short. Any loss will be increased by the amount of compensation, interest or dividends, and transaction costs the fund must pay to the lender of the borrowed security. In addition, because the fund’s loss on a short sale stems from increases in the value of the stock sold short, the extent of such loss, like the price of the stock sold short, is theoretically unlimited. By contrast, a fund’s loss on a long position arises from decreases in the value of the stock and therefore is limited by the fact that a stock’s value cannot drop below zero. In addition, the fund may not be able to close out a short position at a particular time or price advantageous to the fund and there is some risk the lender of the stock sold short will terminate the loan at an inopportune time.
A long position is the opposite of a short position. A long position is the buying of a security such as a stock with the expectation that it rise in value.
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SOURCE American Century Investments