FUSI Profile
The American Century Multisector Floating Income ETF is an actively managed fund designed to deliver income and capital preservation through a diversified portfolio of floating rate securities. Under normal market conditions, the fund allocates at least 80% of its net assets, including any borrowings, into floating rate instruments. This strategy aims to capitalize on the interest rate environment by investing in securities that adjust their interest payments based on prevailing rates, thus offering a degree of protection against rising interest rates.
The fund focuses primarily on securitized credit instruments, encompassing a range of asset classes such as collateralized loan obligations (CLOs), credit risk transfer (CRT) securities, floating rate commercial mortgage-backed securities (CMBS), and other mortgage- or asset-backed securities (ABS). By targeting these sectors, the fund seeks to capture higher yields while managing credit risk through securitization, which provides additional layers of security and diversification within the fixed income spectrum.
While the fund predominantly invests in investment-grade securities, it maintains the flexibility to allocate up to 35% of its portfolio to below-investment-grade securities. This allocation allows the fund to seek potentially higher returns from high-yield segments, balancing risk and reward by including securities with lower credit ratings but potentially higher income generation. This approach supports the funds objective of providing a competitive income stream while managing overall portfolio risk.
The American Century Multisector Floating Income ETF is managed with a focus on maintaining credit quality and leveraging the floating rate nature of its investments to respond dynamically to changes in interest rates. The funds strategy integrates both fundamental and quantitative analyses to identify attractive investment opportunities across various credit sectors. This active management style aims to optimize the funds income potential and protect against interest rate volatility, making it a suitable choice for investors seeking income with a defensive posture against rate increases.
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