2017 Qualified Dividend Income

Qualified dividends are dividends received by a fund from a stock, provided that the fund has held the stock for a required holding period. Mutual funds may pass through to investors any qualified dividends it receives. At the fund level, these may be applied to ordinary income and/or short-term capital gains distributions.

Qualified dividends are taxed at the long-term capital gain rates. To qualify for these reduced rates, you must own the mutual fund's shares for a period of 61 days or longer. That period must include the date the fund distributed the dividends.

The table below reflects the percentage of each fund's distributions that are considered qualified.

Fund Name Percentage to Apply to Ordinary Dividends*
AC Alternatives Disciplined Long Short Fund 0.00%
AC Alternatives Emerging Opportunities Total Return Fund 0.00%
AC Alternatives Equity Market Neutral Fund 0.00%
AC Alternatives Income Fund 15.29%
AC Alternatives Long Short Fund 50.19%
AC Alternatives Market Neutral Value Fund 45.73%
Adaptive All Cap Fund1 41.79%
Adaptive Equity Fund 46.94%
All Cap Growth Fund 0.00%
Balanced Fund 41.39%
Capital Value Fund 100.00%
Core Equity Plus Fund 100.00%
Disciplined Growth Fund 41.23%
Disciplined Growth Plus Fund2 0.00%
Emerging Markets Debt Fund 0.00%
Emerging Markets Fund 100.00%
Emerging Markets Small Cap Fund 51.70%
Emerging Markets Value Fund 100.00%
Equity Growth Fund 63.09%
Equity Income Fund 50.49%
Focused Dynamic Growth Fund 0.00%
Focused International Growth Fund 0.00%
Global Allocation Fund 0.00%
Global Bond Fund 0.00%
Global Gold Fund 0.00%
Global Growth Fund 100.00%
Global Real Estate Fund 14.31%
Global Small Cap Fund 21.81%
Growth Fund 54.60%
Heritage Fund 0.00%
High Income Fund 0.20%**
Income & Growth Fund 58.36%
International Bond Fund 0.00%
International Core Equity Fund 87.85%
International Discovery Fund 0.00%
International Growth Fund 100.00%
International Opportunities Fund 31.31%
International Value Fund 100.00%
Large Company Value Fund 100.00%
Mid Cap Value Fund 100.00%
Multi-Asset Income Fund 24.19%
Multi-Asset Real Return Fund 0.00%
New Opportunities Fund3 20.03%
NT Core Equity Plus Fund 100.00%
NT Disciplined Growth Fund 53.84%
NT Emerging Markets Fund 100.00%
NT Equity Growth Fund 86.08%
NT Global Real Estate Fund 12.62%
NT Growth Fund 42.57%
NT Heritage Fund 100.00%
NT International Growth Fund 100.00%
NT International Small-Mid Cap Fund 100.00%
NT International Value Fund 100.00%
NT Large Co Value Fund 82.52%
NT Mid Cap Value Fund 90.31%
NT Small Company Fund 100.00%
One Choice 2020 Portfolio 47.76%
One Choice 2025 Portfolio 51.35%
One Choice 2030 Portfolio 55.16%
One Choice 2035 Portfolio 59.67%
One Choice 2040 Portfolio 63.54%
One Choice 2045 Portfolio 69.26%
One Choice 2050 Portfolio 70.14%
One Choice 2055 Portfolio 75.71%
One Choice 2060 Portfolio 71.77%
One Choice In Retirement Portfolio 47.22%
One Choice Portfolio: Aggressive 50.74%
One Choice Portfolio: Conservative 37.34%
One Choice Portfolio: Moderate 46.63%
One Choice Portfolio: Very Aggressive 68.30%
One Choice Portfolio: Very Conservative 21.76%
Real Estate Fund 5.96%
Select Fund 100.00%
Small Cap Growth Fund 0.00%
Small Cap Value Fund 22.02%
Small Company Fund 100.00%
Strategic Allocation: Aggressive Fund 54.89%
Strategic Allocation: Conservative Fund 45.64%
Strategic Allocation: Moderate Fund 47.69%
Sustainable Equity Fund 100.00%
Ultra Fund 100.00%
Utilities Fund 94.20%
Value Fund 100.00%

* Ordinary dividends includes net investment income distributions and short-term capital gain distributions.

** Please note this rate applies to distributions from 10/2/2017 to 12/31/2017.


On May 7, 2018, the Adaptive All Cap Fund's name changed to Adaptive Small Cap Fund.


On April 10, 2017, the Disciplined Growth Plus Fund changed its name to AC Alternatives Disciplined Long Short Fund.


On October 20, 2017, the New Opportunities Fund combined into the Small Cap Growth Fund.

Lowered rates for qualified dividends are a result of the 2003 Tax Act and have been made permanent by the American Taxpayer Relief Act of 2012.

IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.