Disciplined Core Equity Fund - I Class · NASDAQ:AMEIX
Disciplined Core Equity Fund - I Class — American Century Investments — Investor Presentation (May 2021)
15 slides from Disciplined Core Equity Fund - I Class's investor presentation, May 2021
Slide 1: Alternatives: What You Need to Know About Risk
® ALTERNATIVES WHAT YOU NEED TO KNOW ABOUT RISK
Slide 2: Table of Contents
TABLE OF CONTENTS Overview Short Selling Derivatives Leverage Liquidity Performance Expectations We’ve outlined some of the advanced techniques associated with alternative investing. In addition to this information, each specific fund you may consider will have its own set of risks. It’s also im- po
Slide 3: Overview
OVERVIEW HOW CAN ALTERNATIVE INVESTMENTS BE USED IN A PORTFOLIO? Alternatives have the potential to: Manage volatility Lessen impacts of market swings Improve diversification Institutions have used alternative investments for decades to aim for enhanced risk-adjusted returns over time. We recommend
Slide 4: Overview continued: The Balance of Risk and Reward
OVERVIEW continued THE BALANCE OF RISK AND REWARD ALTERNATIVES are investment choices outside of traditional long-only stocks and bonds and may react differently than traditional asset classes to market swings. All investments have benefits and risks. Inside we explore a few of the more common risk
Slide 5: Short Selling
SHORT SELLING DEFINITION A trading strategy intended to capitalize on falling prices. EXAMPLE A portfolio manager effectively borrows and then sells a stock or bond they anticipate will decline in price. The manager does not own the stock The profit or loss is the difference or bond but instead will
Slide 6: Short Selling continued
SHORT SELLING continued KEY POINTS PURPOSE Investors take action on a belief that a Profit from falling prices security might be overvalued (striving Short selling is the opposite of buying low/selling to benefit if the value decreases). high. It means you buy a security and expect the price to decl
Slide 7: Derivatives
DERIVATIVES DEFINITION Contracts where the value is based on the performance of other assets, interest rates or indices. Two common types of derivatives are options and futures. EXAMPLE 1 - OPTIONS (Two basic types of options contracts) •C all Options - A buyer can, but is not required to, buy an as
Slide 8: Derivatives continued: Futures
DERIVATIVES continued EXAMPLE 2 - FUTURES A contract where the buyer and seller are both required to buy or sell an asset, like a stock, bond or index, at a future date at a set price. A portfolio manager Scenario 1 Scenario 2 is expecting a large new He can wait for the money to arrive He can buy a
Slide 9: Derivatives continued
DERIVATIVES continued KEY POINTS PURPOSE Derivatives are typically bought for Derivatives are used to hedge against much less than the asset’s price, but changes in interest rates and price move up and down with the asset’s price. movements, and can be a cost effective way to help gain access to oth
Slide 10: Leverage
LEVERAGE DEFINITION Using borrowed money for an investment and expecting the profits to be greater than the interest owed. EXAMPLE Leverage can help investors finance additional investments. Mutual funds regulations limit the amount of explicit leveraging, when money or assets are contractually borr
Slide 11: Leverage continued
LEVERAGE continued KEY POINTS PURPOSE Leverage may augment returns or I nvestors generally use leverage to help ability to hedge risks. increase the magnitude of profits by gaining additional shares, assets or market exposure through borrowing. Mistimed or excessive leverage his greater purchasing p
Slide 12: Liquidity
LIQUIDITY DEFINITION Measure of how readily a security can be bought or sold on demand. A liquid security can be easily bought or sold with little or no impact on price. A liquid market is when the spread between the selling and buying price is close together. The spread will increase as markets bec
Slide 13: Liquidity continued
LIQUIDITY continued KEY POINTS PURPOSE Alternative investing strategies may Less-liquid investments may be attractive for involve less liquid or harder-to-sell investors willing to trade off the ability to sell securities. quickly for longer-term return potential. By regulation, mutual funds must li
Slide 14: Performance Expectations
PERFORMANCE EXPECTATIONS QUESTION What should investors expect from alternative investments? ANSWER Investors might perceive all alternatives as high risk with the potential for high returns. But, like any investment, investors need to determine what makes the most sense for their personal goals, ti
Slide 15: Consider the fund's investment objectives, risks, charges and expenses
® You should consider the fund’s investment objectives, risks, charges and expenses carefully before you invest. The fund’s prospectus or summary prospectus, which can be obtained by visiting americancentury.com, contains this and other information about the fund, and should be read carefully before
American Century Investments — Investor Presentation (May 2021) on 6ix