Smart Tax Solutions

Smart Tax Solutions: Designed to Preserve Capital, Fight Taxes

Our fixed income team has been managing tax-free investments since 1972. Backed by sound, experienced credit analysis and spanning maturities and risk levels, American Century Investments® tax-free bond funds may be a part of a smart tax solution that's right for your clients.

Help manage your clients' tax burdens with American Century Investments' municipal bond funds. With the advantage of paying interest free from federal taxes, a municipal bond fund's tax-equivalent yield may be more attractive for certain clients.

Put smart tax solutions into your clients' portfolios with these tax-free bond funds.

About American Century Investments


Experienced Management Team

Since 1972, we have been delivering a high level of risk-adjusted total return and tax-free income for long-term investors. Currently, we manage more than $36 billion in fixed income assets, which include a diverse municipal bond line-up.


Comprehensive Risk Management

Our dedicated risk management team focuses on understanding all facets of risk and transforming it into risk-adjusted return. We don't want to simply minimize risk, we want to maximize return per unit of risk.

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Extensive Credit Research

Research is the core of our municipal bond investment process. Our tenured research and analysis team assesses each issurer's ability to make their interest payments and pay per value at maturity.

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Aligned with Bond Investors' Expectations

We understand investors buy municipal bond funds because they appreciate the reassurance that comes with them, like payment of principal at maturity, lower relative volatility, low correlations with stocks and tax-free income.

Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

The two main risks related to fixed income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments. There may be less information available on the financial condition of issuers of municipal securities than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds.

Investment income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax (AMT). Capital gains are not exempt from state and federal income tax.

Investment returns are exempt from Federal taxes.

Because the fund invests primarily in California municipal securities and securities issued by U.S. territories, its yield and share price will be affected by political and economic developments within the state and territories.

There is no guarantee that all of the fund's income will be exempt from federal or state or local income taxes. The portfolio managers are permitted to invest up to 20% of the fund's assets in debt securities with interest payments that are subject to federal income tax, California state or local income tax and/or the federal alternative minimum tax.

Even though the fund is designed to purchase assets exempt from federal taxes and currently has no exposure to the federal alternative minimum tax (AMT), there is no guarantee that all of the fund's income will be exempt from federal income tax or the federal AMT. Specifically, the portfolio managers are permitted at any time to invest up to 20% of the fund's assets in debt securities with interest payments that are subject to federal income tax and/or federal AMT.

Tax rate used to calculate tax-equivalent yield is combined current Federal and California maximum tax rate of 50.9%


Diversification does not assure a profit nor does it protect against loss of principal.

Tax Equivalent Yield refers to the pre-tax yield required from a taxable bond in order to equal the tax-free yield of a municipal bond.

The information is not intended as a personalized recommendation or fiduciary advice and should not be relied upon for, investment, accounting, legal or tax advice.