American Century's New York Tax-Free Fund to liquidate May 3

By Toni Weeks

San Luis Obispo, Calif., April 5 - The board of trustees of American Century Municipal Trust approved on April 4 the liquidation of the New York Tax-Free Fund, according to a 497 filing with the Securities and Exchange Commission.

The fund will be closed to all investments, except reinvested dividends and capital gains distributions, as of close of business on April 19, with the liquidation to occur May 3.

Effective April 5, the securities in the fund will be valued at the bid price, rather than at the mean between the bid and ask prices, due to the upcoming liquidation.

The fund seeks to maximize total return through high current income and invests at least 80% of its assets in debt securities, primarily rated investment grade, with interest payments exempt from federal and New York state and local income tax.

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

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