American Century Growth Investor Class (TWCGX)
Filed: 13 Sep 06, 12:00am
Filed by: American Century Mutual Funds, Inc.
Pursuant to Rule 425 under the
Securities Act of 1933, as amended
Subject Company: Kopp Funds, Inc.
Investment Company Act File No. 811-08267
NEWS RELEASE [AMERICAN CENTURY INVESTMENTS LOGO]
Contacts: Laura Kouri, American Century, (816)340-4710 or (816)340-7033
Jody Lowe, Kopp Investment Advisors, (414)443-9444
AMERICAN CENTURY INVESTMENTS ANNOUNCES AGREEMENT TO ACQUIRE
MUTUAL FUND ASSETS OF KOPP INVESTMENT ADVISORS
KANSAS CITY, Mo., Sept. 13, 2006 -- American Century Investments today
announced an agreement in principle to acquire the retail mutual fund assets of
Kopp Investment Advisors. The two acquired Kopp mutual funds will be reorganized
into existing American Century mutual funds. Assets totaling approximately $300
- - 350 million from Kopp Emerging Growth Fund and Kopp Total Quality Management
Fund will be added to American Century New Opportunities II Fund and American
Century Equity Growth Fund, respectively.
Terms of the deal were not disclosed.
The planned reorganizations, unanimously approved by the boards of American
Century and Kopp Funds and expected to be completed in late February 2007, stand
to benefit the investors of both companies while fulfilling the long-term
strategic intent of both groups.
"We're very pleased to be announcing this transaction with Kopp," said
David Tucker, American Century senior vice president of business development.
"The additional assets will allow us to reach a fee breakpoint on one of our key
strategies, New Opportunities II, which will directly translate to lower fees
for its shareholders."
"I'm delighted we are entering into this agreement with American Century,"
said Lee Kopp, chairman and chief executive officer of Kopp Investment Advisors.
"The reorganization of our retail funds will enable us to focus exclusively on
our core competency: private account management."
Kopp Emerging Growth is a small cap growth strategy that seeks long-term
capital appreciation. Kopp Total Quality Management is a large-cap blend
strategy that also seeks long-term capital appreciation. Lee Kopp and Sally
Anderson co-manage the funds.
American Century New Opportunities II Fund seeks long-term capital growth.
Its portfolio managers look for stocks of smaller-size companies they believe
will increase in value over time, using an investment strategy developed by
American Century and a bottom-up approach to stock selection. Harold Bradley,
Stafford Southwick and Matthew Ferretti co-manage the fund.
American Century Equity Growth Fund seeks long-term capital growth. In
selecting stocks for the fund, the portfolio managers select primarily from the
1,500 largest publicly traded U.S. companies. The managers use quantitative,
computer-driven models to construct the portfolio of stocks for the fund.
William Martin, Fei Zou and Thomas Vaiana are the co-managers.
PLANNED REORGANIZATION
- ----------------------
- ------------------------------------- ------------------------------------------
KOPP FUND (MERGES INTO) AMERICAN CENTURY FUND
- ------------------------------------- ------------------------------------------
Kopp Emerging Growth Fund American Century New Opportunities II Fund
(SMALL CAP GROWTH) (SMALL CAP GROWTH)
- ------------------------------------- ------------------------------------------
Kopp Total Quality Management Fund American Century Equity Growth Fund
(LARGE CAP BLEND) (LARGE CAP BLEND)
- ------------------------------------- ------------------------------------------
ABOUT KOPP INVESTMENT ADVISORS
- ------------------------------
The Kopp Funds are managed by Kopp Investment Advisors, a Minnesota-based
firm founded in 1990 by President and CEO Lee Kopp. Kopp Investment Advisors was
initially established to manage private accounts and launched its retail mutual
fund business in 1997. The firm currently manages approximately $1.5 billion.
ABOUT AMERICAN CENTURY INVESTMENTS
- ----------------------------------
American Century Investments is a leading investment manager with nearly
fifty years of experience helping investors achieve their financial goals. Based
in Kansas City, Mo., the company manages approximately $98 billion in assets
through separate accounts, commingled trusts, subadvisory accounts and mutual
funds. James E. Stowers Jr. founded the company in 1958. His son, James E.
Stowers III, is chairman and William M. Lyons is president and chief executive
officer. For the past seven years, American Century, which employs approximately
1,900 people, has been selected as one of FORTUNE Magazine's 100 Best Companies
to Work for. For more information about the company, visit
WWW.AMERICANCENTURY.COM.
IMPORTANT DISCLOSURE INFORMATION
- --------------------------------
The information included herein is not an offer to sell, nor a solicitation of
an offer to buy, shares of any investment company, nor is it a solicitation of
any proxy. American Century Mutual Funds, Inc. and American Century Quantitative
Equity Funds, Inc., will file a proxy statement/prospectus and other relevant
documents regarding the reorganizations with the U.S. Securities and Exchange
Commission (the "SEC"). INVESTORS ARE URGED TO READ THESE DOCUMENTS BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION ABOUT THE REORGANIZATIONS AND RELATED
MATTERS. You will be able to obtain these documents free of charge at the SEC
Web site (www.sec.gov).
YOU SHOULD CONSIDER THE FUNDS' INVESTMENT OBJECTIVES, RISKS, AND CHARGES AND
EXPENSES CAREFULLY BEFORE YOU INVEST. THE FUNDS' PROSPECTUSES, WHICH CAN BE
OBTAINED BY CALLING 1-800-345-2021 (FOR THE AMERICAN CENTURY FUNDS) OR
1-888-533-KOPP (FOR THE KOPP FUNDS), CONTAINS THIS AND OTHER INFORMATION ABOUT
THE FUNDS, AND SHOULD BE READ CAREFULLY BEFORE INVESTING. INVESTMENT RETURN AND
FUND SHARE VALUE WILL FLUCTUATE, AND REDEMPTION VALUE MAY BE MORE OR LESS THAN
ORIGINAL COST.
# # #
NEWS RELEASE
Contacts: Jody Lowe
Lowe Communications LLC for Kopp Investment Advisors
(414)443-9444
Laura Kouri
American Century Investments
(816)340-4710
KOPP INVESTMENT ADVISORS TO SELL MUTUAL FUNDS TO AMERICAN CENTURY
MONEY MANAGEMENT FIRM TO FOCUS ON ITS PRIVATE PORTFOLIO MANAGEMENT BUSINESS
EDINA, MN. September 13, 2006 -- Kopp Investment Advisors today announced
an agreement in principle to sell Kopp Funds, its retail mutual fund business,
to Kansas City, Missouri-based American Century Investments. The sale is
scheduled to be completed in the first quarter, and allows Kopp to focus on its
private portfolio management business and American Century to expand its
broker-sold mutual fund assets under management.
Says Kopp Investment Advisors Chairman Lee Kopp, "We want to narrow our
focus to our core business--private portfolio management. American Century is a
highly regarded growth investment manager with a significant focus on mutual
funds. Kopp mutual fund investors will receive broader product choices and award
winning service from American Century."
Upon completion of the transaction, the Kopp Emerging Growth Fund will be
reorganized into the American Century New Opportunities II Fund and the Kopp
Total Quality Management Fund will be reorganized into the American Century
Equity Growth Fund.
Lee Kopp founded Kopp Investment Advisors in 1990 and launched its retail
mutual fund business in 1997. Says Kopp, "In recent years, it has been
increasingly difficult for small fund groups to thrive. Heightened regulatory
and compliance burdens along with aggressive industry competition require the
scale of a larger firm like American Century."
As an increasing share of industry assets move to the largest companies,
many funds have determined that consolidation is in their shareholders' best
interest. At least eight fund groups have changed hands in 2006 alone. American
Century Investments has been one of the consolidators.
This transaction is unrelated to Kopp Investment Advisors' core business,
and allows Kopp to narrow its focus to private account management. Says Kopp,
"We look forward to the additional attention this will allow us to devote to our
private account clients."
ABOUT KOPP INVESTMENT ADVISORS
A registered investment advisor, Kopp Investment Advisors provides private
portfolio management to institutional investors and high net worth individuals.
Kopp also serves financial advisors as they help their clients reach their
goals. Founded in 1990 and based in Edina, Minnesota, the Kopp investment team
is led by seasoned veterans with decades of experience uncovering and analyzing
emerging growth companies. Kopp also offers the Total Quality Management
investment strategy, a large cap core approach investing in quality-advantaged
companies based on their effective application of quality-related management
techniques. For more information, visit WWW.KOPPINV.COM.
ABOUT AMERICAN CENTURY
American Century Investments is a leading investment manager with nearly
fifty years of experience helping investors achieve their financial goals. Based
in Kansas City, Mo., the company manages nearly $100 billion in assets through
separate accounts, commingled trusts, subadvisory accounts and mutual funds.
James E. Stowers Jr. founded the company in 1958. His son, James E. Stowers III,
is chairman and William M. Lyons is president and chief executive officer. For
the past seven years, American Century, which employs approximately 1,900
people, has been selected as one of FORTUNE Magazine's 100 Best Companies to
Work for. For more information about the company, visit WWW.AMERICANCENTURY.COM.
FOR MORE INFORMATION, CALL KOPP FUNDS AT 1-888-533-KOPP OR AMERICAN CENTURY
INVESTMENTS AT 1-800-345-2021 FOR A PROSPECTUS CONTAINING INFORMATION ON THE
FUNDS' INVESTMENT OBJECTIVES, RISKS, FEES AND EXPENSES. READ IT CAREFULLY BEFORE
YOU INVEST OR SEND MONEY. INVESTMENT RETURN AND SHARE PRICE WILL FLUCTUATE, AND
REDEMPTION VALUE MAY BE MORE OR LESS THAN ORIGINAL COST.
IMPORTANT DISCLOSURE INFORMATION
- --------------------------------
The information included herein is not an offer to sell, nor a solicitation of
an offer to buy, shares of any investment company, nor is it a solicitation of
any proxy. American Century Mutual Funds, Inc. and American Century Quantitative
Equity Funds, Inc. will file a proxy statement/prospectus and other relevant
documents regarding the reorganization with the U.S. Securities and Exchange
Commission (the "SEC"). INVESTORS ARE URGED TO READ THESE DOCUMENTS BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION ABOUT THE REORGANIZATIONS AND RELATED
MATTERS. You will be able to obtain these documents free of charge at the SEC
Web site (www.sec.gov).
# # #
September 13, 2006
Dear Fellow Shareholder,
Kopp Investment Advisors has entered into an agreement in principle to sell Kopp
Funds, our retail mutual fund business, to American Century Investments. The
sale is scheduled to be completed in the first quarter of 2007. In the next few
weeks, you will receive the applicable proxy voting materials.
American Century is a highly regarded investment manager that I believe shares
many of the same investing, cultural and business values as Kopp Investment
Advisors. The acquisition of the Kopp mutual funds by American Century should
provide a number of benefits for Kopp shareholders including:
o A parent company focused primarily on the mutual fund business.
o Proven performance from a seasoned growth investor.
o Broader product choices and award winning services.
Upon completion of the transaction, the Kopp Emerging Growth Fund will be
reorganized into the American Century New Opportunities II Fund and the Kopp
Total Quality Management Fund will be reorganized into the American Century
Equity Growth Fund.
In recent years, it has been increasingly difficult for small fund groups to
thrive. Heightened regulatory and compliance burdens along with aggressive
industry competition require the scale of a larger firm like American Century.
As an increasing share of industry assets move to the largest companies, many
funds have determined that consolidation is in their shareholders' best
interest. At least eight fund groups have changed hands in 2006 alone. American
Century Investments has been one of the consolidators.
We are proud to have had the opportunity to serve Kopp Funds since 1997. Going
forward, Kopp Investment Advisors will focus exclusively on our private account
management. Sally Anderson and I will lead the investment team and look forward
to continuing to serve our private account clients.
Best regards,
Lee Kopp
Chairman
FOR MORE INFORMATION, CALL KOPP FUNDS AT 1-888-533-KOPP OR AMERICAN CENTURY
INVESTMENTS AT 1-800-345-2021 FOR A PROSPECTUS CONTAINING INFORMATION ON THE
FUNDS' INVESTMENT OBJECTIVES, RISKS, FEES AND EXPENSES. READ IT CAREFULLY BEFORE
YOU INVEST OR SEND MONEY. INVESTMENT RETURN AND SHARE PRICE WILL FLUCTUATE, AND
REDEMPTION VALUE MAY BE MORE OR LESS THAN ORIGINAL COST.
IMPORTANT DISCLOSURE INFORMATION
- --------------------------------
The information included herein is not an offer to sell, nor a solicitation of
an offer to buy, shares of any investment company, nor is it a solicitation of
any proxy. American Century Mutual Funds, Inc. and American Century Quantitative
Equity Funds, Inc. will file a proxy statement/prospectus and other relevant
documents regarding the reorganization with the U.S. Securities and Exchange
Commission (the "SEC"). INVESTORS ARE URGED TO READ THESE DOCUMENTS BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION ABOUT THE REORGANIZATIONS AND RELATED
MATTERS. You will be able to obtain these documents free of charge at the SEC
Web site (www.sec.gov).
SCRIPT FOR CALL CENTER:
Kopp Investment Advisors is in the process of selling its retail mutual fund
business to American Century in order concentrate on its primary business -
private account management. The Kopp funds will be merged into similar funds run
by American Century. The merger will be complete in the first quarter of 2007.
Several key points include:
1. Private account management has always been Kopp's main business. Retail
funds are a much smaller part.
2. In recent years, it has been increasingly difficult for small fund groups
to thrive. Heightened regulatory and compliance burdens along with
aggressive industry competition require the scale of a larger firm like
American Century.
3. American Century is a highly regarded investment manager with a primary
focus on mutual funds. American Century has purchased other funds,
including the Mason Street Funds.
4. Emerging Growth will go into New Opportunities II Fund, and TQM will go
into Equity Growth. Both are 4 star funds. Both funds have Class A and
Class C shares.
Specifically, the Emerging Growth Fund will merge into American Century New
Opportunities II Fund as follows:
- ------------------- ------------------- -------------------- -------------------
FUND CLASS TICKER MERGES INTO TICKER
- ------------------- ------------------- -------------------- -------------------
Class A KOPPX Class A ANOAX
- ------------------- ------------------- -------------------- -------------------
Class C KEGCX Class C ANOCX
- ------------------- ------------------- -------------------- -------------------
Class I KEGIX Investor Class ANOIX
- ------------------- ------------------- -------------------- -------------------
The Total Quality Management Fund will merge into the American Century
Equity Growth Fund as follows:
- ------------------- ------------------- -------------------- -------------------
FUND CLASS TICKER MERGES INTO TICKER
- ------------------- ------------------- -------------------- -------------------
Class A KTQMX Advisor Class BEQAX
- ------------------- ------------------- -------------------- -------------------
Class C KTQCX Class C AEYCX
- ------------------- ------------------- -------------------- -------------------
Class I KTQIX Investor Class BEQGX
- ------------------- ------------------- -------------------- -------------------
FOR MORE INFORMATION, CALL KOPP FUNDS AT 1-888-533-KOPP OR AMERICAN CENTURY
INVESTMENTS AT 1-800-345-2021 FOR A PROSPECTUS CONTAINING INFORMATION ON THE
FUNDS' INVESTMENT OBJECTIVES, RISKS, FEES AND EXPENSES. READ IT CAREFULLY BEFORE
YOU INVEST OR SEND MONEY. INVESTMENT RETURN AND SHARE PRICE WILL FLUCTUATE, AND
REDEMPTION VALUE MAY BE MORE OR LESS THAN ORIGINAL COST.
IMPORTANT DISCLOSURE INFORMATION
- --------------------------------
The information included herein is not an offer to sell, nor a solicitation of
an offer to buy, shares of any investment company, nor is it a solicitation of
any proxy. American Century Mutual Funds, Inc. and American Century Quantitative
Equity Funds, Inc. will file a proxy statement/prospectus and other relevant
documents regarding the reorganization with the U.S. Securities and Exchange
Commission (the "SEC"). INVESTORS ARE URGED TO READ THESE DOCUMENTS BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION ABOUT THE REORGANIZATIONS AND RELATED
MATTERS. You will be able to obtain these documents free of charge at the SEC
Web site (www.sec.gov).
Script for calls to brokers:
I am calling to let you know that Kopp Investment Advisors announced we are
exiting the retail mutual fund business to concentrate on our primary business -
private account management. PersonNameLee Kopp and Sally Anderson will continue
to lead our investment team as we seek to build and enhance our private account
management business. The Kopp funds will be merged into similar funds run by
American Century. The merger will be completed in the first quarter of 2007.
3 key points:
1. Private account management has always been our main business. Retail
funds are a much smaller part.
2. In recent years, it has been increasingly difficult for small fund
groups to thrive. Heightened regulatory and compliance burdens along
with aggressive industry competition require the scale of a larger
firm like American Century.
3. American Century is a highly regarded investment manager with a
primary focus on mutual funds. American Century has purchased other
funds including the Mason Street Funds.
Emerging Growth will go into New Opportunities II fund, and TQM will go
into Equity Growth. Both are 4 star funds. Both funds have Class A and
Class C shares.
Specifically, the Emerging Growth Fund will merge into American Century New
Opportunities II Fund as follows:
- -------------------- ------------------ --------------------- ------------------
FUND CLASS TICKER MERGES INTO TICKER
- -------------------- ------------------ --------------------- ------------------
Class A KOPPX Class A ANOAX
- -------------------- ------------------ --------------------- ------------------
Class C KEGCX Class C ANOCX
- -------------------- ------------------ --------------------- ------------------
Class I KEGIX Investor Class ANOIX
- -------------------- ------------------ --------------------- ------------------
The Total Quality Management Fund will merge into the American Century
Equities Growth Fund as follows:
- -------------------- ------------------ --------------------- ------------------
FUND CLASS TICKER MERGES INTO TICKER
- -------------------- ------------------ --------------------- ------------------
Class A KTQMX Advisor Class BEQAX
- -------------------- ------------------ --------------------- ------------------
Class C KTQCX Class C AEYCX
- -------------------- ------------------ --------------------- ------------------
Class I KTQIX Investor Class BEQGX
- -------------------- ------------------ --------------------- ------------------
I will be sending you an e-mail with the press release and profiles of the
receiving funds.
Kopp Investment Advisors will continue to offer private account management with
both our Emerging Growth and our TQM large cap core portfolios. There are no
changes in the investment staff. Lee and Sally will continue to lead our
investment team, and are optimistic about the potential the coming years hold.
FOR MORE INFORMATION, CALL KOPP FUNDS AT 1-888-533-KOPP OR AMERICAN CENTURY
INVESTMENTS AT 1-800-345-2021 FOR A PROSPECTUS CONTAINING INFORMATION ON THE
FUNDS' INVESTMENT OBJECTIVES, RISKS, FEES AND EXPENSES. READ IT CAREFULLY BEFORE
YOU INVEST OR SEND MONEY. INVESTMENT RETURN AND SHARE PRICE WILL FLUCTUATE, AND
REDEMPTION VALUE MAY BE MORE OR LESS THAN ORIGINAL COST.
IMPORTANT DISCLOSURE INFORMATION
- --------------------------------
The information included herein is not an offer to sell, nor a solicitation of
an offer to buy, shares of any investment company, nor is it a solicitation of
any proxy. American Century Mutual Funds, Inc. and American Century Quantitative
Equity Funds, Inc. will file a proxy statement/prospectus and other relevant
documents regarding the reorganization with the U.S. Securities and Exchange
Commission (the "stocktickerSEC"). INVESTORS STOCKTICKERARE URGED TO READ THESE
DOCUMENTS BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
REORGANIZATIONS STOCKTICKERAND RELATED MATTERS. You will be able to obtain these
documents free of charge at the stocktickerSEC Web site (www.sec.gov).
# # #
Text for e-mail to brokers:
Kopp Investment Advisors announced this morning that we are exiting the retail
mutual fund business to concentrate on our primary business - private account
management. Lee Kopp and Sally Anderson will continue to lead our investment
team as we seek to build and enhance our private account management business.
The Kopp funds will be merged into similar funds run by American Century. The
merger will be completed in the first quarter of 2007.
3 key points:
1. Private account management has always been our main business. Retail
funds are a much smaller part.
2. In recent years, it has been increasingly difficult for small fund
groups to thrive. Heightened regulatory and compliance burdens along
with aggressive industry competition require the scale of a larger
firm like American Century.
3. American Century is a highly regarded investment manager with a
primary focus on mutual funds. American Century has been one of the
consolidators, most recently purchasing the Mason Street Funds earlier
this year.
Emerging Growth will go into New Opportunities II fund, and TQM will go
into Equity Growth. Both are 4 star funds. Both funds have Class A and
Class C shares.
Specifically, the Emerging Growth Fund will merge into American Century New
Opportunities II Fund as follows:
- -------------------- ------------------- -------------------- ------------------
FUND CLASS TICKER MERGES INTO TICKER
- -------------------- ------------------- -------------------- ------------------
Class A KOPPX Class A ANOAX
- -------------------- ------------------- -------------------- ------------------
Class C KEGCX Class C ANOCX
- -------------------- ------------------- -------------------- ------------------
Class I KEGIX Investor Class ANOIX
- -------------------- ------------------- -------------------- ------------------
The Total Quality Management Fund will merge into the American Century
Equities Growth Fund as follows:
- -------------------- ------------------- -------------------- ------------------
FUND CLASS TICKER MERGES INTO TICKER
- -------------------- ------------------- -------------------- ------------------
Class A KTQMX Advisor Class BEQAX
- -------------------- ------------------- -------------------- ------------------
Class C KTQCX Class C AEYCX
- -------------------- ------------------- -------------------- ------------------
Class I KTQIX Investor Class BEQGX
- -------------------- ------------------- -------------------- ------------------
The attached document contains the press release and profiles of the receiving
funds.
Kopp Investment Advisors will continue to offer private account management with
both our Emerging Growth and our TQM large cap core portfolios. There are no
changes in the investment staff. Lee and Sally will continue to lead our
investment team, and are optimistic about the potential the coming years hold.
Call me with any questions.
(Marketing Rep name for that broker)
(Marketing Rep contact info)
FOR MORE INFORMATION, CALL KOPP FUNDS AT 1-888-533-KOPP OR AMERICAN CENTURY
INVESTMENTS AT 1-800-345-2021 FOR A PROSPECTUS CONTAINING INFORMATION ON THE
FUNDS' INVESTMENT OBJECTIVES, RISKS, FEES AND EXPENSES. READ IT CAREFULLY BEFORE
YOU INVEST OR SEND MONEY. INVESTMENT RETURN AND SHARE PRICE WILL FLUCTUATE, AND
REDEMPTION VALUE MAY BE MORE OR LESS THAN ORIGINAL COST.
IMPORTANT DISCLOSURE INFORMATION
- --------------------------------
The information included herein is not an offer to sell, nor a solicitation of
an offer to buy, shares of any investment company, nor is it a solicitation of
any proxy. American Century Mutual Funds, Inc. and American Century Quantitative
Equity Funds, Inc. will file a proxy statement/prospectus and other relevant
documents regarding the reorganization with the U.S. Securities and Exchange
Commission (the "SEC"). INVESTORS ARE URGED TO READ THESE DOCUMENTS BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION ABOUT THE REORGANIZATIONS AND RELATED
MATTERS. You will be able to obtain these documents free of charge at the SEC
Web site (www.sec.gov).
# # #