American Century announces plans to offer Emerging Markets Debt Fund

By Toni Weeks

San Luis Obispo, Calif., May 1 - American Century International Bond Fund announced its plans to offer a new emerging markets fund, the Emerging Markets Debt 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 long-term total return. Under normal conditions, it will invest at least 80% of its net assets in fixed-income instruments of issuers tied economically to emerging markets. The fund will invest in debt instruments issued by foreign governments and corporations. Investments will typically be made in dollar-denominated instruments but may be denominated in local emerging markets currencies. The fund may invest without limitation in both investment-grade and high-yield securities.

The portfolio management team includes Marge Karner, John A. Lovito, Brian Howell and Kevin Akioka.

American Century plans to offer A, C, R, R6, investor and institutional share classes. Ticker symbols have not yet been established.

Class A shares will be subject to a sales load of 4.5%, and class C shares will incur a maximum deferred sales load of 1%.

The management fee will be 0.76% for institutional class shares and 0.71% for class R6 shares. All other share classes will be assessed a management fee of 0.96%. Including these and the effects of a fee waiver agreement with the investment adviser, total annual fund operating expenses are expected to be 0.97% for investor class shares, 0.77% for institutional class shares, 1.22 % for class A shares, 1.97% for class C shares, 1.47% for class R shares and 0.72% for class R6 shares.

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

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