Good News for American Century Mutual Fund Investors

As an investor in American Century mutual funds I was disappointed when I read about a month ago that the fund company was changing its funds to load funds.

My wife’s retirement account is with American Century so I knew it was going to be a hassle to find and switch to another fund company. Plus, we’ve been investing in American Century Equity Income Fund (TWEIX) for several year now and have been pleased with its performance. However, I’m not a believer in the fees that load funds charge so I called in yesterday to inquire about switching the accounts.

I was pleased to discover that any person that invests directly into an American Century mutual fund before the last week in September will not be subject to the load fees now or in the future. Basically, any existing investors will be grandfathered in and won’t have to pay the load. My guess is they didn’t want to chase away existing investors but wanted to implement a load so this is their approach.

This is good news for us. We’ll be rolling my wife’s 403b into a Vanguard IRA at some point in the future after she stops working. Now we won’t have to hassle with finding a new fund company in between. No load fees, no hassle, good news!

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