Investment Products and Services Launches

American Century releases new alternative investments fund, and Thornburg Investment Management adds R6 share classes.

American Century Releases New Alternative Investments Fund

The AC Alternative Disciplined Long Short Fund by American Century Investments will be available to clients and investors seeking equities with potentially lower volatility, the firm announced.

“AC Alternatives Disciplined Long Short is a welcome addition because it’s another way to help clients strive to mitigate risk in their portfolios,” says Cleo Chang, senior vice president and head of alternative investments for American Century Investments. “We also believe long/short strategies can provide important diversification with the potential for more consistent returns over a full market cycle.”

This fund builds on the firm’s AC Alternatives lineup, which it kicked off 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% to 70%.

American Century says 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. These decisions will 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% net exposure to equities. “We revamped the fund to adapt to changing market dynamics and client preferences,” says 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, Scott Wittman, CFA, CAIA; and Vice President and Portfolio Manager Yulin Long, CFA.

NEXT: Thornburg Investment Management Adds R6 Share Classes

Thornburg Investment Management Adds R6 Share Classes

Thornburg Investment Management (TIM) announced it is adding R6 share classes to four of its funds. The change will apply to the Thornburg Global Opportunities Fund (THOGX), Investment Income Builder Fund (TIBOX), Limited Term Income Fund (THRLX), and Strategic Income Fund (TSRSX).

The new shares will be sold through defined contribution (DC) and defined benefit (DB) pension plans. The firm says these share classes will meet the growing demand for lower-cost options and greater fee transparency.

“We’re meeting the need for more flexible and transparent fee structures with the addition of R6 shares on four more Thornburg funds,” says Christina Stauffer, head of DCIO business development at Thornburg. 

TIM says R6 shares are offered at net asset value with no sales charges, 12(b)-1 fees, or any shareholder servicing fees. They are designed to make it easier for plan sponsors to comply with new Department of Labor (DOL) fee disclosure regulations by separating mutual fund expenses from recordkeeping and other service-provider fees. This will allow plan fiduciaries to determine if plan services fees are fair and reasonable. 

R6 shares are currently offered on the Thornburg International Value Fund (TGIRX), International Growth Fund (THGIX), and Developing World Fund (TDWRX).

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