Fund Evaluator:

American Century Equity Income Inv Overview

American Century Equity Income Inv (TWEIX) is an actively managed U.S. Equity Large Value fund. American Century Investments launched the fund in 1994.

The investment seeks current income; capital appreciation is a secondary objective. The portfolio managers look for equity securities of companies with a favorable income-paying history that have prospects for income payments to continue or increase. The portfolio managers also look for equity securities of companies that they believe are undervalued and have the potential for an increase in price. The fund may invest a portion of its assets in foreign securities when these securities meet the portfolio managers' standards of selection.

About American Century Equity Income Inv (TWEIX)

There are 3 members of the management team with an average tenure of 11.46 years: Kevin Toney (2003), Brian Woglom (2019), Paul Howanitz (2022). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and Russell 3000 Value TR USD index with a weighting of 100%. American Century Equity Income Inv has 117 securities in its portfolio. The top 10 holdings constitute 25.6% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

American Century Equity Income Inv is part of the Equity global asset class and is within the U.S. Equity fund group. American Century Equity Income Inv has 8.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 72.6%. There is 7.7% allocated to foreign stock, and 11.6% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.4% (0.0% domestic bond, 0.4% foreign bond and 6.2% convertible bond). American Century Equity Income Inv has 1.4% of the portfolio in cash.

Assets Under Management

The fund has $2 billion in total assets, which is above the $1 billion average for the Large Value category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

TWEIX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The American Century Equity Income Inv expense ratio is high compared to funds in the Large Value category. American Century Equity Income Inv has an expense ratio of 0.94%, which is 1% higher than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. American Century Equity Income Inv has a portfolio turnover rate of 38%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 62% for the Large Value category.

Recently, in the month of June 2026, American Century Equity Income Inv returned 2.5%, which earned it a grade of B, as the Large Value category had an average return of 1.6%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

American Century Equity Income Inv has a trailing yield of 2.13%, which is above the 1.25% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

American Century Equity Income Inv Grades

Year to date, the fund has returned 8.6%, 2.4 percentage points worse than the category, which translates into a grade of D. The fund has returned 16.5% over the past year (grade of D), 10.7% over the past three years (grade of F) and 7.5% per year over the past five years (grade of F) and 8.6% per year over the past 10 years (grade of F).

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