New American Century fund ‘casting a much wider net’ for income

A new mutual fund at American Century Investments seeks sustainable income for investors by “casting a much wider net” beyond traditional income sources.

The American Century Multi-Asset Income Fund will invest in a mix of stocks that pay dividends and bonds that pay interest, as a typical income fund does. It also can buy convertible securities, preferred stock, global real estate investment trusts and master limited partnerships as part of its equity holdings. And on the bond side it can buy currencies and mortgage-backed securities.

Morningstar Inc., the investment information company, likely will classify the fund as a conservative allocation fund, Kansas City-based American Century said.

This story was originally published December 1, 2014 at 11:22 AM with the headline "New American Century fund ‘casting a much wider net’ for income."