American Century has announced that by early next year, it will offer 10 of its mutual funds only through financial advisers.
The firm plans to offer A, B and C shares for the American Century Advisor Funds, which, with the exception of one money market product, will be available only via intermediaries as of Feb. 3. The remaining funds in American Century's product line will still be offered to customers directly and without a load charge, the company said.
American Century officials said the move reflects a sea change in the fund business, where investors are flocking to intermediaries for advice. In fact, 85% of fund shares are now sold through intermediaries, the firm said.
"We want to offer our expertise to investors in whatever way they choose to access us," said David Larrabee, the firm's senior VP of third-party sales.
The funds include the firm's High-Yield Municipal, Diversified Bond, High-Yield, International Growth, Large Company Value, New Opportunities II, Prime Money Market, Select and Value. The firm will continue to offer the Prime Money Market Fund directly.