ALNHX — AC Alternatives Income Fund

Data updated: 2021-03-25

ALNHX — AC Alternatives Income Fund. Emerging Markets Real Estate · $39.59M AUM · 2.69% expense ratio. Holdings, fees, performance and SEC filings.

ALNHX Fund Overview

ALNHX — AC Alternatives Income Fund is a US mutual fund managed by American Century Capital Portfolios INC, categorised as Emerging Markets Real Estate. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

Type: US mutual fund
Manager: American Century Capital Portfolios INC
Category: Emerging Markets Real Estate
Assets under management: $39.59M
1-year return: -9.5%
Ticker: ALNHX
SEC CIK: 0000908186
SEC series ID: S000048992
Share class ID: C000154451

ALNHX Investment Objective and Strategy

AC Alternatives Income Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by American Century Capital Portfolios INC.

Investment objective

The fund seeks to provide diverse sources of income.

Principal investment strategy

The fund pursues its investment objective by focusing primarily on asset classes and strategies that generate current income and will invest primarily in income-generating securities. Specifically, the fund will combine several distinct strategies designed to capture current yield from a variety of income producing securities with an additional focus on seeking to protect investor purchasing power through capital appreciation. American Century Investment Management, Inc. (the advisor) utilizes multiple subadvisors to manage the funds assets, each employing its own particular investment strategy. Perella Weinberg Partners Capital Management LP (PWP) has been engaged by the advisor to assist the advisor with identifying and recommending other underlying subadvisors to manage distinct investment strategies within the fund.

PWP uses a flexible and opportunistic approach that allocates assets among underlying subadvisors with expertise in various investment strategies, and supplements those strategies with its own direct investment management and hedging strategies. PWP also provides tactical allocation of assets among the various underlying subadvisors and a framework for the risk management and investment monitoring of the fund. The advisor provides oversight of each of these functions. The advisor and PWP share responsibility with regards to due diligence assessments of underlying subadvisors and the overall risk management program for the fund. PWP may allocate assets to underlying subadvisors employing all or a subset of the investment strategies described below at any given time, and, subject to the oversight of the advisor, may change allocations from time to time in its discretion.

The funds principal investment strategies include: Corporate credit strategies involve purchasing fixed-income corporate securities, including securities that are rated below investment grade (also known as high-yield securities or junk bonds). Investments in this strategy may also include mortgage and other asset-backed securities, floating rate bank loans, loan participations and other floating rate debt securities, such as collateralized loan obligations (also known as CLOs), as well as other types of credit and credit-related securities. Structured credit strategies involve taking long or short positions in asset-backed securities, including securities backed by commercial and residential mortgages, which may include non-agency mortgage-backed securities. Asset-backed securities may also involve securities backed by auto loans, credit card debt, student loans, corporate loans or other collateral.

These securities may pay fixed or variable rates of interest. Real estate strategies focus investments in real estate investment trusts (REITs) and equities, debt and hybrid securities issued by companies that own significant real estate assets or derive a significant portion of gross revenues or net profits from real estate or real estate-related companies at the time of investment (collectively, real estate companies). The strategy may also acquire senior securities, such as preferred stocks and debt instruments (including high-yield, distressed and mortgage-backed securities that may be in default and may have any or no credit rating) of real estate companies or loans secured by real estate or real estate-related companies that the underlying subadvisor believes have above-average yield potential.

The real estate strategy invests globally and generally focuses on opportunities in developed markets. Master limited partnership (MLP) strategies seek to deliver high yields and asset growth by investing (directly or indirectly through other instruments) in publicly traded partnerships that have a special tax designation which allows them to pass through their income, gains, losses and other deductions or credits to their shareholders. MLPs must invest in energy infrastructure, financial services or real estate and buy assets that are designed to produce income for their investors. Income-oriented equity strategies seek to identify equity investments in companies with a favorable dividend-paying history that have prospects for dividend payments to continue or increase. Equity investments include common stock, preferred stock, equity equivalent securities such as convertible securities and derivative instruments that give exposure to equities such as stock futures contracts, stock index futures contracts, equity options and swaps on equities.

PWP overlay strategies are utilized by PWP to manage liquidity, hedging and overall thematic exposure of the fund. PWP utilizes investments in certain securities, including but not limited to, exchange traded funds, futures, options, and swaps with the intention of exploiting market opportunities, managing inflows and outflows of fund assets and/or hedging against certain risks identified by PWP. In addition to positions in individual securities, the fund may allocate investments, long or short, to ETFs, mutual funds or other securities that provide exposure to certain market or sector indices. Ordinarily, the 1940 Act prohibits a mutual fund from buying more than 3% of the shares of any other fund, investing more than 5% of its assets in any other fund, or investing more than 10% of its assets in other funds generally.

However, the fund may, pursuant to an exemptive order received by the advisor, invest in mutual funds, ETFs, business development companies and other investment companies in excess of these limits. To the extent the fund invests in other funds in excess of the above limits, it will be operating as a fund of funds. The underlying funds in which the fund invests have management fees which increase their cost. The costs associated with these investments are set forth in the funds Annual Fund Operating Expenses table as Acquired Fund Fees and Expenses. The fund may invest in securities of foreign companies including companies located in emerging markets, when these securities meet an underlying subadvisors standards of selection. The fund also may use foreign currency exchange contracts in order to shift investment exposure from one currency into another for hedging purposes or to enhance returns.

The fund may invest in fixed-income securities of any maturity and does not seek to maintain a particular weighted average maturity. The fund is currently authorized to utilize the following investment strategies and underlying subadvisors: Investment Strategy Underlying Subadvisor Opportunistic Corporate Credit ArrowMark Colorado Holdings LLC Corporate Credit Bain Capital Credit, LP Structured Credit Good Hill Partners LP Real Estate Timbercreek Investment Management (U.S.) LLC Income-oriented Equity, Overlay and MLPs PWP PWP may make recommendations to the advisor to terminate and replace underlying subadvisors from time to time. To identify underlying subadvisors, PWP uses various selection criteria, which include investment capability, alignment with fund objectives, ability to compliment the styles of other subadvisors to achieve the funds objective and other factors.

The advisor will then determine which underlying subadvisor changes are recommended to the funds board of directors for approval. In making allocation decisions regarding underlying subadvisors, PWP performs due diligence on both investment and general business aspects of the underlying subadvisor. PWPs analysis considers, among other factors, the managers investment philosophy and process, historical track record, infrastructure, risk management capabilities, and organizational stability. PWP also considers the outlook for the underlying subadvisors investment strategy given current and future capital market and economic conditions. PWP or the advisor may decide to terminate an underlying subadvisor allocation or investment strategy when it no longer believes the underlying subadvisor can contribute favorably towards our overall desired risk and return profile for the fund.

Such decisions could be based on a change in current or expected capital market and economic conditions, key employee turnover, or a change in the managers investment or risk management process, or organizational stability, among other factors. The fund may also engage in active and frequent trading of portfolio securities to achieve its principal investment strategies. A higher portfolio turnover rate may indicate higher transaction costs and may affect the funds performance. Higher portfolio turnover also may result in the realization and distribution of capital gains, including short-term capital gains.

ALNHX Performance

Total returns for ALNHX (as of 2026-10-01), from SEC filings.

Period	Total return
1 year	-9.5%

ALNHX Risk Information

Risk metrics for ALNHX, derived from monthly returns in SEC filings.

1-year volatility (annualised): 18.4%

ALNHX Costs and Fees

ALNHX costs about $269 per $10,000 invested per year in fund expenses.

Net expense ratio: 2.69%
Gross expense ratio: 2.83%
Portfolio turnover: 111%
Brokerage commissions: 4.55 bps of average net assets (SEC N-CEN)

ALNHX Cashflows

Over the 12 months to 2021-01, AC Alternatives Income Fund had net outflows of $185.03M, from monthly SEC N-PORT filings.

Month	Net flow
2021-01	−$38.75M
2020-12	−$10.25M
2020-11	−$4.53M
2020-10	−$6.80M
2020-09	−$7.42M
2020-08	−$9.16M

ALNHX Debt Constituents

No individual debt constituents are reported in AC Alternatives Income Fund's latest SEC N-PORT filing.

ALNHX Prospectus and SEC Filings

Official AC Alternatives Income Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

Related Funds

Other Emerging Markets Real Estate funds tracked on ABC INVEST:

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.