MutualFundWire.com: American Century Adds Large Cap Value Fund
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Tuesday, August 3, 1999

American Century Adds Large Cap Value Fund


American Century Investments is adding to its value fund lineup by launching American Century Large Cap Value Fund. The moderate-risk fund became available on July 30. The fund is co-managed by Mark Mallion and Chuck Ritter.

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    • The funds will be initially distributed to existing clients and directly to the retail market. American Century will be targeting current shareholders through fund newsletters. Ritter told the MFWire.com, that once the fund has a performance track record they will begin broadening the distribution scope.

    Individual, advisor and institutional shares of the fund will be available. The minimum investment for retail investors is $2,500 and $1,000 for IRA and UGMA/UTMA investors.

    The annual management fee for retail investors is 0.90% for the first $1 billion in net assets under management, 0.80% for the next $5 billion and 0.07% for net assets under management greater than $5 billion.

    The co-managers will seek long-term capital growth by investing in stocks of well-established companies. "I think that growth has outperformed value for the past year or two with the exception of some shot backs," Mallion said, adding that value will be coming around.

    "We expect large cap value to provide returns that are competitive with the market but with a measure of lower relative volatility," Ritter said. "The fund will likely appeal to retirement investors as well as other investors seeking the potential for superior risk-adjusted returns compared to more aggressive investments."

    The managers said they favor the banking and telephone sectors. "We are seeing these large caps trading below their normal multiples" Mallion said. "We also see great value in utilities."


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