American Century Ultra Fund - I Class (TWUIX)
Filed: 23 Mar 07, 12:00am
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
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[ ] Definitive Proxy Statement
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AMERICAN CENTURY MUTUAL FUNDS, INC.
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PROXY STATEMENT
APRIL , 2007
IMPORTANT VOTING INFORMATION INSIDE
American Century Asset Allocation Portfolios, Inc.
American Century Capital Portfolios, Inc.
American Century Growth Funds, Inc.
American Century Mutual Funds, Inc.
American Century Strategic Asset Allocations, Inc.
American Century World Mutual Funds, Inc.
American Century Variable Portfolios, Inc.
AMERICAN CENTURY INVESTMENTS
4500 MAIN STREET
KANSAS CITY, MISSOURI 64111
APRIL ___, 2007
Dear Shareholder,
I would like to invite you to an upcoming special meeting of shareholders
to be held on June 27, 2007 at 10:00 a.m. Shareholders of American Century's
equity (growth, value and international) and asset allocation funds are being
asked to vote on the election of Directors to the funds' Boards of Directors.
Other proposals certain shareholders will be asked to approve include:
o Holders of Advisor Class shares of certain funds will be asked to approve a
change in the Advisor Class fee structure,
o shareholders of the Real Estate Fund will be asked to approve a change to
its investment objective, and
o shareholders of the Equity Index fund will be asked to approve a new
subadvisory agreement between Northern Trust Investments, N.A. and American
Century Investment Management, Inc.
More detailed information is contained in the enclosed materials. The Boards of
Directors of these funds, including all of the Independent Directors,
unanimously approved and recommend that you vote FOR the proposals.
The proposal to change the Advisor Class fee structure is part of a larger
set of initiatives designed to streamline American Century's mutual fund
offerings and better align them with investor buying preferences and market
opportunities. If these additional initiatives apply to your fund, they will be
presented for your consideration and approval in a separate set of proxy
materials.
Your vote is extremely important, no matter how large or small your
holdings. Please review the enclosed materials and vote online, by phone, or by
signing and returning your proxy card(s) in the enclosed postage-paid envelope.
If we do not hear from you after a reasonable time, you may receive a call from
our proxy solicitors, Automatic Data Processing, Inc. (ADP), reminding you to
vote. If you have any questions or need assistance in completing your proxy
card(s), please contact ADP at 1-877-256-6083.
Thank you for investing with American Century Investments.
Sincerely,
American Century Investments
AMERICAN CENTURY FUNDS
AMERICAN CENTURY ASSET ALLOCATION PORTFOLIOS, INC.
AMERICAN CENTURY CAPITAL PORTFOLIOS, INC.
AMERICAN CENTURY GROWTH FUNDS, INC.
AMERICAN CENTURY MUTUAL FUNDS, INC.
AMERICAN CENTURY STRATEGIC ASSET ALLOCATIONS, INC.
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
AMERICAN CENTURY WORLD MUTUAL FUNDS, INC.
IMPORTANT NEWS FOR SHAREHOLDERS
While we encourage you to read all of the proxy materials, you will find a brief
overview of the proposals below. The overview and accompanying Q&A contain
limited information, should be read in conjunction with, and are qualified by
reference to, the more detailed information contained elsewhere in the Proxy
Statement.
o Shareholders of all of the Issuers listed above are being asked to
approve the election of nine nominated Directors (the "Nominees") to
the Board of Directors of each Issuer.
o Holders of Advisor Class shares are being asked to approve a change in
the Advisor Class fee structure of the following funds:
o Equity Income, Large Company Value, Mid Cap Value, Real Estate,
Small Cap Value, and Value, all portfolios of American Century
Capital Portfolios, Inc.;
o Legacy Large Cap, Legacy Focused Large Cap, and Legacy Multi Cap,
all portfolios of American Century Growth Funds, Inc.;
o Balanced, Capital Value, Growth, Heritage, Select, Ultra, and
Vista, all portfolios of American Century Mutual Funds, Inc.;
o Strategic Allocation: Conservative, Strategic Allocation:
Moderate, and Strategic Allocation: Aggressive, all portfolios of
American Century Strategic Asset Allocations, Inc.; and
o Emerging Markets, Global Growth, International Discovery,
International Growth, Life Sciences, and Technology, all
portfolios of American Century World Mutual Funds, Inc. (each an
"Advisor Fund" and together the "Advisor Funds").
o Shareholders of Real Estate are being asked to approve an
amendment to the investment objective of Real Estate.
o Shareholders of Equity Index are being asked to approve a new
subadvisory agreement between Northern Trust Investments, N.A.
and the Advisor, American Century Investment Management, Inc.
(the "Advisor").
QUESTIONS AND ANSWERS
Q. WHEN WILL THE SPECIAL MEETING BE HELD? WHO CAN VOTE?
A. The special meeting will be held on Wednesday, June 27, 2007, at 10:00 a.m.
Central time at American Century's office at 4500 Main Street, Kansas City,
Missouri. Please note, this will be a business meeting only. No presentations
about the funds are planned. If you owned shares of one of the impacted funds at
the close of business on April 13, 2007, you are entitled to vote, even if you
later sold the shares. Each shareholder is entitled to one vote per dollar of
shares owned, with fractional dollars voting proportionally.
Q. WHO ARE THE NINE NOMINEES?
A. The nine Nominees include seven current members of the Boards of Directors
(the "Boards"), James E. Stowers Jr., Thomas A. Brown, Andrea C. Hall, Donald H.
Pratt, Gale E. Sayers, M. Jeannine Strandjord, and Timothy Webster; an advisory
member to the Boards, James Olson; and the current President and Chief Executive
Officer of American Century Companies, Inc., and an advisory member to the
Boards, Jonathan S. Thomas.
Q. WHAT IS THE PROPOSED CHANGE TO THE ADVISOR CLASS FEE STRUCTURE?
A. If approved, the change in the Advisor Class fee structure will result in:
o A decrease of 25 basis points in the Rule 12b-1 fee charged by the
Advisor Class of the Advisor Funds, and
o A simultaneous increase of 25 basis points (0.25%) in the unified
management fee for the Advisor Class of the Advisor Funds, resulting
in no change to the total expense ratio. The increase in the unified
management fee and corresponding decrease in the Rule 12b-1 fee are
designed to move the fee for the provision of certain
shareholder/administrative services from the Rule 12b-1 fee to the
unified management fee. This modification will make the fee structure
of the Advisor Class shares of the Advisor Funds more consistent with
the other share classes of the American Century Funds.
Q. HOW WILL THE CHANGE TO THE ADVISOR CLASS FEE STRUCTURE AFFECT MY INVESTMENTS
IN THE FUNDS?
A. If approved, neither your investment nor your total expense ratio will
change. As stated above, if approved the proposal will result in the Advisor
Class having a 25 basis point increase in its unified management fee and a
simultaneous 25 basis point decrease in the Rule 12b-1 fee, resulting in no
change to the Advisor Class's total expense ratio.
Q. WILL THE CHANGE TO THE ADVISOR CLASS FEE STRUCTURE CAUSE ME TO PAY ANY SALES
CHARGES?
A. No. If approved, a front-end charge (load) will be added to the Advisor Class
shares of Equity Income, Large Company Value, Real Estate, Value, Heritage,
Select, Ultra, Strategic Allocation: Conservative, Strategic Allocation:
Moderate, Strategic Allocation: Aggressive, Emerging Markets, Global Growth and
International Growth. However, it will not apply to Advisor Class shares held at
the time of the change, or subsequently purchased in the same accounts.
Q. WHAT IS THE PROPOSED AMENDMENT TO THE INVESTMENT OBJECTIVE OF REAL ESTATE?
A. Currently, the fundamental investment objective of Real Estate states that
"The fund seeks long-term capital appreciation. Income is a secondary
objective." The Board of Directors has proposed to amend the investment
objective to state that "The fund seeks high total investment return through a
combination of capital appreciation and current income." If approved, the
amended investment objective will not identify capital appreciation as "primary"
and income as "secondary" objectives of the Fund. Rather, the investment
objective of the Fund will be to seek both capital appreciation and production
of income while not emphasizing one over the other.
Q. HOW WILL THE AMENDMENT TO THE INVESTMENT OBJECTIVE OF REAL ESTATE AFFECT MY
INVESTMENT IN REAL ESTATE?
A. If the proposal is approved, Real Estate will continue its subadvisory
relationship with J.P. Morgan Investment Management, Inc. (the "Subadvisor").
The Subadvisor does not expect the change in the investment objective to affect
its investment strategy for the day-to-day management of the Fund or change the
risk factors applicable to the Fund.
Q. WHY IS THE BOARD OF DIRECTORS PROPOSING A NEW SUBADVISORY AGREEMENT BETWEEN
NORTHERN TRUST INVESTMENTS, N.A. AND THE ADVISOR WITH RESPECT TO EQUITY INDEX?
A. The Board of Directors of Equity Index is proposing a subadvisory agreement
with Northern Trust Investments, N.A. to replace the current subadvisory
agreement with Barclay's Global Fund Advisers ("Barclays"). Barclays recently
informed the Advisor that in light of Barclays' current business model, Barclays
is not interested in continuing to provide subadvisory services to Equity Index.
Q. HOW THE BOARDS RECOMMEND THAT I VOTE?
A. The Boards, including all of the Independent Directors, unanimously recommend
you vote FOR all of the proposals. For a discussion of the factors the Boards
considered in approving these proposals, see the accompanying materials.
Q. MY HOLDINGS IN THE FUNDS ARE SMALL, WHY SHOULD I VOTE?
A. Your vote makes a difference. If many shareholders do not vote their proxies,
your fund may not receive enough votes to go forward with its special meeting.
This means additional costs will be incurred to solicit votes to determine the
outcome of the proposals.
Q. WHAT HAPPENS IF ANY ONE OF THE PROPOSALS IS NOT APPROVED BY SHAREHOLDERS?
A. Each proposal is separate, and is not dependent upon the approval of any
other proposal. However, if a proposal relating to the change in the Advisor
Class fee structure does not receive shareholder approval with respect to one or
more Advisor Class Funds, then American Century may elect not to proceed with
the change for any of the Advisor Funds.
Q. WHY ARE MULTIPLE PROXY CARDS ENCLOSED?
A. You will receive a proxy card for each of the funds in which you are a
shareholder. In addition, if you own shares of the same fund in multiple
accounts that are titled differently, you will receive a proxy card for each
account.
Q. HOW DO I CAST MY VOTE?
A. You may vote online, by phone, by mail, by fax or in person at the special
meeting. To vote online, access the Web site listed on a proxy card. To vote by
telephone, call the toll-free number listed on a proxy card. To vote online or
by telephone, you will need the number that appears in the gray box on each of
your proxy cards. To vote by mail, complete, sign and send us the enclosed proxy
card(s) in the enclosed postage-paid envelope. To vote by fax, complete and sign
the proxy card(s) and fax both sides to the toll-free number listed on a proxy
card. You also may vote in person at the special meeting on Wednesday, June 27,
2007. If you need more information or have any questions on how to cast your
vote, call our proxy solicitor at 1-877-256-6083.
YOUR VOTE IS IMPORTANT. PLEASE VOTE TODAY AND AVOID THE NEED FOR ADDITIONAL
SOLICITATION EXPENSES.
AMERICAN CENTURY ASSET ALLOCATION PORTFOLIOS, INC.
AMERICAN CENTURY CAPITAL PORTFOLIOS, INC.
AMERICAN CENTURY GROWTH FUNDS, INC.
AMERICAN CENTURY MUTUAL FUNDS, INC.
AMERICAN CENTURY STRATEGIC ASSET ALLOCATIONS, INC.
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
AMERICAN CENTURY WORLD MUTUAL FUNDS, INC.
4500 Main Street
Kansas City, Missouri 64111
Telephone No.: 1-877-345-8836
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
April __, 2007
A special meeting (the "Meeting") of the shareholders of American Century Asset
Allocation Portfolios, Inc., American Century Capital Portfolios, Inc., American
Century Growth Funds, Inc., American Century Mutual Funds, Inc., American
Century Strategic Asset Allocations, Inc., American Century Variable Portfolios,
Inc., and American Century World Mutual Funds, Inc., (each an "Issuer" and
together the "Issuers") will be held at 10:00 a.m. on June 27, 2007 at 4500 Main
Street, Kansas City, Missouri 64111 to consider the following proposals (each, a
"Proposal"):
1. To elect nine Directors to the Board of Directors of each Issuer;
2. To approve a change to the fee structure of the Advisor Class of the
following American Century funds: Equity Income, Large Company Value, Mid Cap
Value, Real Estate, Small Cap Value, and Value, all portfolios of American
Century Capital Portfolios, Inc.; Legacy Focused Large Cap, Legacy Large Cap,
and Legacy Multi Cap, all portfolios of American Century Growth Funds, Inc.;
Balanced, Capital Value, Growth, Heritage, Select, Ultra, and Vista, all
portfolios of American Century Mutual Funds, Inc.; Strategic Allocation:
Conservative, Strategic Allocation: Moderate, and Strategic Allocation:
Aggressive, all portfolios of American Century Strategic Asset Allocations,
Inc.; Emerging Markets, Global Growth, International Discovery, International
Growth, Life Sciences, and Technology, all portfolios of American Century World
Mutual Funds, Inc. (each an "Advisor Fund" and together the "Advisor Funds");
3. To approve an amendment to the investment objective of Real Estate, a
portfolio of American Century Capital Portfolios, Inc.
4. To approve a new subadvisory agreement between Northern Trust Investments,
N.A. and American Century Investment Management, Inc. pertaining to the
management of Equity Index, a portfolio of American Century Capital Portfolios,
Inc.
Shareholders of record as of the close of business on April 13, 2007 are
entitled to notice of and to vote at the Meeting and any adjournments or
postponements thereof. Shareholders of each of the Issuers will vote separately
on Proposal 1. Holders of Advisor Class shares of each of the Advisor Funds will
vote separately on Proposal 2. Shareholders of Real Estate will vote on Proposal
3. Shareholders of Equity Index will vote on Proposal 4.
In the event that a quorum is not present or in the event that a quorum is
present but sufficient votes in favor of a Proposal have not been received, the
persons named as proxies may propose one or more adjournments of the Meeting to
permit further solicitation of proxies as to any Proposal. Any adjournment of
the Meeting for the further solicitation of proxies for a Proposal will require
the affirmative vote of a majority of the total number of shares entitled to
vote on the Proposal that are present in person or by proxy at the Meeting to be
adjourned. The persons named as proxies will vote those proxies they are
entitled to vote in their discretion as to any such adjournment. A shareholder
vote may be taken on any other Proposal on which there is a quorum prior to such
adjournment. Such vote will be considered final regardless of whether the
Meeting is adjourned to permit additional solicitation with respect to any other
Proposal.
AMERICAN CENTURY ASSET ALLOCATION PORTFOLIOS, INC.
AMERICAN CENTURY CAPITAL PORTFOLIOS, INC.
AMERICAN CENTURY GROWTH FUNDS, INC.
AMERICAN CENTURY MUTUAL FUNDS, INC.
AMERICAN CENTURY STRATEGIC ASSET ALLOCATIONS, INC.
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
AMERICAN CENTURY WORLD MUTUAL FUNDS, INC.
4500 Main Street
Kansas City, Missouri 64111
Telephone No.: 1-877-345-8836
PROXY STATEMENT
This Proxy Statement is being furnished in connection with the solicitation
of proxies by the Boards of Directors (each a "Board" and collectively the
"Boards") of American Century Asset Allocation Portfolios, Inc., American
Century Capital Portfolios, Inc., American Century Growth Funds, Inc., American
Century Mutual Funds, Inc., American Century Strategic Asset Allocations, Inc.,
American Century Variable Portfolios, Inc., and American Century World Mutual
Funds, Inc., (each an "Issuer" and together the "Issuers"). The Boards are
soliciting the proxies of shareholders of the Issuers for use in connection with
a Special Meeting (the "Meeting") of shareholders that will be held at 10:00
a.m. on June 27, 2007 at 4500 Main Street, Kansas City, Missouri 64111. Each
Issuer has one or more funds that are organized as series of the Issuer.
Hereafter, such funds will be collectively referred to as the "Funds." The
Meeting notice, this Proxy Statement and one or more proxy cards are being sent
to shareholders of record as of the close of business on April 13, 2007 (the
"Record Date") beginning on or about April 16, 2007. Please read this Proxy
Statement and keep it for future reference. Each Fund has previously sent its
annual report and semiannual report to its shareholders. A copy of a Fund's most
recent annual report and semiannual report may be obtained without charge by
writing to, or calling, the applicable Fund at the address and telephone number
listed above. If you have any questions regarding this Proxy Statement, please
contact Automatic Data Processing, Inc. (ADP), at 1-877-256-6083.
TABLE OF CONTENTS
PAGE
PROXY STATEMENT
SUMMARY OF PROPOSALS AND FUNDS VOTING
PROPOSAL 1: ELECTION OF DIRECTORS OF THE ISSUERS
Overview and Related Information
Information Regarding the Nominees
Responsibilities of the Boards
Standing Board Committees
Board Compensation
Beneficial Ownership of Affiliates by Proposed Independent Directors
Officers
Share Ownership
Independent Registered Public Accounting Firm
Shareholder Approval
PROPOSAL 2: APPROVAL OF A CHANGE IN THE FEE STRUCTURE OF THE ADVISOR CLASS
SHARES OF THE ADVISOR FUNDS
Overview and Related Information
Consequences of Approval of the Change in Fee Structure
Information Regarding the Advisor
Description of the New Advisory Agreement
Comparison of the Current Advisory Agreements and the New Advisory Agreements
Basis for the Boards' Approval of the New Advisory Agreements
Shareholder Approval
PROPOSAL 3: APPROVAL OF AN AMENDMENT TO THE INVESTMENT OBJECTIVE OF REAL
ESTATE
Overview and Related Information
Investment Strategy
Principal Risks
Reasons for the Proposed Change
Shareholder Approval
PROPOSAL 4: APPROVAL OF A NEW SUBADVISORY AGREEMENT FOR EQUITY INDEX
Overview and Related Information
Information Regarding the Current Subadvisor and the Proposed Subadvisor
Names, Addresses and Principal Occupations
Comparison of the Current Subadvisory Agreement and the New Subadvisory Agreement
Basis for the Board's Approval of the New Subadvisory Agreement
Shareholder Approval
OTHER INFORMATION
Meetings of Shareholders
Date, Time and Place of Meeting
Use and Revocation of Proxies
Voting Rights and Required Votes
Outstanding Shares and Significant Shareholders
Other Service Providers
WHERE TO FIND ADDITIONAL INFORMATION
OTHER MATTERS AND DISCRETION OF ATTORNEYS NAMED IN THE PROXY
EXHIBITS
EQUITY OWNERSHIP OF NOMINEES EXHIBIT A
SIGNIFICANT SHAREHOLDERS EXHIBIT B
CURRENT AND PRO FORMA ADVISORY FEES EXHIBIT C
INVESTMENT SUBADVISORY AGREEMENT EXHIBIT D
SUMMARY OF PROPOSALS AND FUNDS VOTING
The following table describes the proposals (each a "Proposal" and together
the "Proposals") to be considered at the Meeting and the shareholders that are
entitled to vote on each Proposal:
- ------------------------------------ ----------------------------------- ----------------------- --------------
PROPOSAL ISSUERS SOLICITED FUNDS SOLICITED CLASSES
SOLICITED
- ------------------------------------ ----------------------------------- ----------------------- --------------
1. To elect nine Directors to the All Issuers All Funds All Classes
Board of Directors of each Issuer.
- ------------------------------------ ----------------------------------- ----------------------- --------------
2. To approve a change to the The Advisor Issuers: The Advisor Funds: Advisor Class
Advisor Class fee structure.
- ------------------------------------ ----------------------------------- ----------------------- --------------
American Century Capital Equity Income, Large Advisor Class
Portfolios, Inc. Company Value, Mid Cap
Value, Real Estate,
Small Cap Value, Value
- ------------------------------------ ----------------------------------- ----------------------- --------------
American Century Growth Funds, Inc. Legacy Focused Large Advisor Class
Cap, Legacy Large Cap,
Legacy Multi Cap
- ------------------------------------ ----------------------------------- ----------------------- --------------
American Century Mutual Funds, Inc. Balanced, Capital Advisor Class
Value, Growth,
Heritage, Select,
Ultra, Vista
- ------------------------------------ ----------------------------------- ----------------------- --------------
American Century Strategic Asset Strategic Allocation: Advisor Class
Allocations, Inc. Conservative, Strategic
Allocation: Moderate,
Strategic Allocation:
Aggressive
- ------------------------------------ ----------------------------------- ----------------------- --------------
American Century World Mutual Emerging Markets, Advisor Class
Funds, Inc. Global Growth,
International
Discovery,
International Growth,
Life Sciences,
Technology
- ------------------------------------ ----------------------------------- ----------------------- --------------
3. To approve an amendment to the American Century Capital Real Estate All Classes
investment objective of Real Estate. Portfolios, Inc.
- ------------------------------------ ----------------------------------- ----------------------- --------------
4. To approve a new subadvisory American Century Capital Equity Index All Classes
agreement between Northern Trust Portfolios, Inc.
Investments, N.A. and American
Century Investment Management, Inc.
pertaining to the management of
Equity Index.
- ------------------------------------ ----------------------------------- ----------------------- --------------
Shareholders of record on the Record Date are entitled to vote at the
Meeting and are entitled to vote at any adjournments or postponements thereof.
Shareholders of each Issuer will vote separately on Proposal 1. Holders of
Advisor Class shares of each of the Advisor Funds will vote separately on
Proposal 2. Shareholders of Real Estate will vote on Proposal 3 and shareholders
of Equity Index will vote on Proposal 4.
The Boards recommend that you vote "FOR" each Proposal.
PROPOSAL 1
ELECTION OF DIRECTORS OF THE ISSUERS
OVERVIEW AND RELATED INFORMATION
Each of the following seven (7) individuals currently serves on the Boards:
James E. Stowers Jr., Thomas A. Brown, Andrea C. Hall, Donald H. Pratt, Gale E.
Sayers, M. Jeannine Strandjord, and Timothy Webster. Additionally, James A.
Olson and Jonathan S. Thomas currently serve as advisory members to the Boards.
The current nominating members of the Boards have nominated the seven Directors
listed above, along with Mr. Olson and Mr. Thomas for election to the Boards.
Hereafter the seven (7) current members of the Boards, along with Mr. Olson and
Mr. Thomas, will be referred to as the "Directors" or the "Nominees." It is
being proposed that the shareholders of each Issuer approve the Nominees. If
approved by the shareholders, each Nominee will serve indefinitely as a Director
of each Board until his or her death, retirement, resignation or removal from
office. The mandatory retirement age for Directors who are not "interested
persons" as that term is defined in the Investment Company Act of 1940, as
amended (the "1940 Act") is 72. However, the mandatory retirement age may be
extended for a period not to exceed two years with the approval of the remaining
Independent Directors. Each Director currently oversees 66 Funds, which are all
series of the Issuers. In addition, Mr. Thomas oversees an additional 43 funds
as an advisory board member for other American Century Funds.
Further information regarding each of the Nominees is listed below. James
E. Stowers Jr. and Jonathan S. Thomas are the only Nominees who are "interested
persons" as that term is defined in the 1940 Act because Mr. Stowers currently
serves as Co-Chairman and Mr. Thomas serves as President and Chief Executive
Officer, of American Century Companies, Inc., the parent company of the Advisor.
The remaining Nominees are not "interested persons" under the 1940 Act and
therefore will be referred to as "Independent Directors." The persons named as
proxies on the enclosed proxy card(s) will vote for the election of all of the
Nominees unless authority to vote for any or all of the Nominees is withheld.
All of the Nominees have consented to serve as directors, if elected. In
case a Nominee shall be unable or shall fail to act as a director by virtue of
an unexpected occurrence, persons named as proxies will vote in their discretion
for such other nominee or nominees as the current Directors may recommend.
INFORMATION REGARDING THE NOMINEES
The following table presents certain information about the Nominees. The
mailing address for each Nominee is 4500 Main Street, Kansas City, Missouri
64111.
NAME OFFICES LENGTH OF PRINCIPAL OCCUPATION DURING THE PAST NUMBER OF OTHER DIRECTORSHIPS
WITH THE TIME SERVED FIVE YEARS FUNDS IN FUND HELD BY DIRECTOR
ISSUERS COMPLEX
OVERSEEN BY
DIRECTOR
- ----------------- ---------- ------------ ------------------------------------- ------------- -----------------
INTERESTED
NOMINEES
- ----------------- ---------- ------------ ------------------------------------- ------------- -----------------
James E. Stowers Director, Since 1958 Founder, Co-Chairman, Director and 66 None
Jr.* Vice Controlling Shareholder, ACC;
Year of Birth: Chairman Co-Vice Chairman, ACC (January 2005
1924 to February 2007); Chairman, ACC
(January 1995 to December 2004);
Director, ACIM, ACGIM, ACS, ACIS and
other ACC subsidiaries
- ----------------- ---------- ------------ ------------------------------------- ------------- -----------------
Jonathan S. Advisory Since 2007 President and Chief Executive 109 None
Thomas** Board Officer, AMERICAN CENTURY COMPANIES,
Year of Birth: Member and INC. ("ACC") (March 2007 to
1963 President present); Chief Administrative
Officer, ACC (February 2006 to
February 2007); Executive Vice
President, ACC (November 2005 to
February 2007). Also serves as:
President, Chief Executive Officer
and Director, AMERICAN CENTURY
SERVICES, LLC ("ACS"); Executive
Vice President AMERICAN CENTURY
INVESTMENT MANAGEMENT ("ACIM"),
AMERICAN CENTURY GLOBAL INVESTMENT
MANAGEMENT ("ACGIM"); Director,
ACIM, ACGIM, ACIS and other ACC
subsidiaries; Managing Director,
MORGAN STANLEY (March 2000 to
November 2005)
- ----------------- ---------- ------------ ------------------------------------- ------------- -----------------
INDEPENDENT
NOMINEES
- ----------------- ---------- ------------ ------------------------------------- ------------- -----------------
Thomas A. Brown Director Since 1980 Managing Member, ASSOCIATED 66 None
Year of Birth: INVESTMENTS, LLC; Managing Member,
1940 BROWN CASCADE PROPERTIES, LLC;
Retired, Area Vice President,
APPLIED INDUSTRIAL TECHNOLOGIES
- ----------------- ---------- ------------ ------------------------------------- ------------- -----------------
Andrea C. Hall Director Since 1997 Retired, Advisor to the President, 66 None
Year of Birth: MIDWEST RESEARCH INSTITUTE
1945
- ----------------- ---------- ------------ ------------------------------------- ------------- -----------------
James A. Olson Advisory Since 2006 Member, PLAZA BELMONT LLC; Chief 66 Director, SAIA, INC.
Year of Birth: Board Member Financial Officer, PLAZA BELMONT LLC and ENTERTAINMENT
1942 (September 1999 to September 2006) PROPERTIES TRUST
- ----------------- ---------- ------------ ------------------------------------- ------------- -----------------
Donald H. Pratt Director, Since 1995 Chairman and Chief Executive 66 None
Year of Birth: Chairman of Officer, WESTERN INVESTMENTS, INC.;
1937 the Board Retired Chairman of the
Board, BUTLER MANUFACTURING COMPANY
- ----------------- ---------- ------------ ------------------------------------- ------------- -----------------
Gale E. Sayers Director Since 2000 President, Chief Executive Officer 66 Director, TRIAD
Year of Birth: and Founder, SAYERS40, HOSPITALS, INC.
1943 INC., a technology products and
services provider
- ----------------- ---------- ------------ ------------------------------------- ------------- -----------------
M. Jeannine Director Since 1994 Retired, formerly Senior Vice 66 Director, DST SYSTEMS
Strandjord President, SPRINT CORPORATION INC., Director, EURONET
Year of Birth: WORLDWIDE INC, Director,
1945 CHARMING SHOPPES, INC.
- ----------------- ---------- ------------ ------------------------------------- ------------- -----------------
Timothy S. Webster Director Since 2001 Managing Director, TDB ACQUISITION 66 None
Year of Birth: GROUP LLC (September 2006 to
1961 present); President and Chief
Executive Officer, AMERICAN ITALIAN
PASTA COMPANY (2001 to December 2005)
- ----------------- ---------- ------------ ------------------------------------- ------------- -----------------
* JAMES E. STOWERS JR. IS AN "INTERESTED" DIRECTOR OF THE ISSUERS FOR
PURPOSES OF THE 1940 ACT AS HE IS CO-CHAIRMAN OF AMERICAN CENTURY
COMPANIES, INC.
** JONATHAN S. THOMAS IS AN "INTERESTED" DIRECTOR OF THE ISSUERS FOR PURPOSES
OF THE 1940 ACT AS HE IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AMERICAN
CENTURY COMPANIES, INC.
RESPONSIBILITIES OF THE BOARDS
The Boards oversee the management of the Issuers and the Funds and meet at
least quarterly to review reports about fund operations. Although the Boards do
not manage the Funds, they have hired American Century Investment Management,
Inc., or an affiliated company (the "Advisor"), to do so. The Boards, in
carrying out their fiduciary duty under the 1940 Act, are responsible for
approving new and existing management contracts with the Advisor.
The Boards have the authority to manage the business of the Issuers on
behalf of their investors, and they have all powers necessary or convenient to
carry out that responsibility. Consequently, the Boards may adopt bylaws
providing for the regulation and management of the affairs of the Issuers and
may amend and repeal them to the extent that such bylaws do not reserve that
right to the Issuers' investors. They may fill vacancies in or reduce the number
of board members, and may elect and remove such officers and appoint and
terminate such agents as they consider appropriate. They may appoint from their
own number and establish and terminate one or more committees consisting of two
or more directors who may exercise the powers and authority of the Boards to the
extent that the directors determine. They may, in general, delegate such
authority as they consider desirable to any officer of the Issuers, to any
committee of the Boards and to any agent or employee of the Issuers or to any
custodian, transfer or investor servicing agent, or principal underwriter. Any
determination as to what is in the interests of the Issuers made by the
directors in good faith shall be conclusive. The Boards met five times in 2006.
STANDING BOARD COMMITTEES
Each Board has five standing committees which oversee specific functions of
the Issuer's operations. The Executive Committee performs the functions of the
Board between board meetings, subject to the limitations on its power set out in
the Maryland General Corporation Law and except for matters requiring the action
of the entire Board under the 1940 Act. The Executive Committee currently
consists of Donald H. Pratt and M. Jeannine Strandjord. The Executive Committee
did not meet in 2006.
Each Board has an Audit Committee, which approves the Issuer's engagement
of the independent registered public accounting firm and recommends approval of
such engagement to the Independent Directors. The Audit Committee also oversees
the activities of the accounting firm and receives reports from the Advisor's
internal audit department. The Audit Committee currently consists of Thomas A.
Brown, Donald H. Pratt and Gale E. Sayers. The Audit Committee met four times in
2006.
Each Board has a Governance Committee which is primarily responsible for
considering and recommending individuals for nomination as directors. The names
of potential director candidates may be drawn from a number of sources,
including recommendations from members of the Board, management (in the case of
interested directors only) and shareholders. Shareholders may submit director
nominations to the Corporate Secretary, American Century Funds, P.O. Box 410141,
Kansas City, MO 64141. All such nominations will be forwarded to the committee
for consideration. The committee also reviews and makes recommendations to the
Board with respect to the composition of board committees and other
board-related matters such as its organization, size, composition,
responsibilities, functions and compensation. The Governance Committee currently
consists of Donald H. Pratt, Andrea C. Hall, and Gale E. Sayers. The Governance
Committee of the Boards met two times in 2006.
Each Board also has a Compliance and Shareholder Communications Committee,
which reviews the results of the Fund's compliance testing program and reviews
quarterly reports from a communications advisor. The quarterly reports from the
communications advisor address various compliance matters and monitor the
implementation of the Funds' code of ethics. The Compliance and Shareholder
Communications Committee currently consists of Andrea C. Hall, James A. Olson
and M. Jeannine Strandjord. The Compliance and Shareholder Communications
Committee met four times in 2006.
Finally, the Fund Performance Review Committee meets quarterly to review
the investment activities and strategies used to manage fund assets. The
committee regularly receives reports from portfolio managers, credit analysts
and other investment personnel concerning the Funds' investments. The Portfolio
Committee currently consists of Timothy S. Webster, Thomas A. Brown, Andrea C.
Hall, James A. Olson, Donald H. Pratt, Gale E. Sayers, and M. Jeannine
Strandjord. The Fund Performance Review Committee met four times in 2006.
BOARD COMPENSATION
Each Independent Director receives compensation for service as a member of
the Boards based on a schedule that takes into account the number of meetings
attended and the assets of the Funds for which the meetings are held. These fees
and expenses are allocated to the Issuers based in part on their relative net
assets. Under the terms of each management agreement with the Advisor, the Funds
are responsible for paying such fees and expenses. For each Issuer's last fiscal
year, each Issuer and the American Century Family of Funds paid the following
amounts to the Independent Directors:
- ------------------- ---------- ----------- ----------- ----------- ------------ ---------- ----------- -----------
FYE OF THOMAS A. ANDREA C. JAMES A. DONALD H. GALE E. M. JEANNINE TIMOTHY
ISSUER ISSUER BROWN HALL OLSON(1) PRATT SAYERS STRANDJORD WEBSTER
- ------------------- ---------- ----------- ----------- ----------- ------------ ---------- ----------- -----------
American Century
Asset Allocation 7/31/2006 $478 $517 $183 $670 $466 $472 $524
Portfolios, Inc.
- ------------------- ---------- ----------- ----------- ----------- ------------ ---------- ----------- -----------
Total
Compensation from
the American $97,667 $105,666 $30,167 $137,167 $96,666 $98,166 $106,667
Century Family of
Funds(2)
- ------------------- ---------- ----------- ----------- ----------- ------------ ---------- ----------- -----------
American Century
Capital 3/31/2006 $21,347 $23,004 $2,498 $30,102 $21,066 $21,070 $23,004
Portfolios, Inc.
- ------------------- ---------- ----------- ----------- ----------- ------------ ---------- ----------- -----------
Total
Compensation from
the American $97,000 $104,500 $11,000 $136,750 $96,000 $96,000 $104,500
Century Family of
Funds(3)
- ------------------- ---------- ----------- ----------- ----------- ------------ ---------- ----------- -----------
American Century
Growth Funds, 7/31/2006 $27 $29 $9 $39 $27 $28 $30
Inc. (4)
- ------------------- ---------- ----------- ----------- ----------- ------------ ---------- ----------- -----------
Total
Compensation from
the American $97,668 $105,666 $30,167 $137,168 $96,666 $98,166 $106,668
Century Family of
Funds(5)
- ------------------- ---------- ----------- ----------- ----------- ------------ ---------- ----------- -----------
American Century
Mutual Funds, Inc. 10/31/2006 $49,006 $53,283 $21,404 $68,875 $48,762 $49,283 $53,542
- ------------------- ---------- ----------- ----------- ----------- ------------ ---------- ----------- -----------
Total
Compensation from
the American $97,666 $106,167 $43,667 $137,167 $97,167 $98,167 $106,667
Century Family of
Funds(6)
- ------------------- ---------- ----------- ----------- ----------- ------------ ---------- ----------- -----------
American Century
Strategic Asset 11/30/2006 $6,394 $6,948 $3,144 $8,971 $6,359 $6,422 $6,983
Allocations, Inc.
- ------------------- ---------- ----------- ----------- ----------- ------------ ---------- ----------- -----------
Total
Compensation from
the American $97,833 $106,333 $47,333 $137,333 $97,333 $98,333 $106,833
Century Family of
Funds(7)
- ------------------- ---------- ----------- ----------- ----------- ------------ ---------- ----------- -----------
American Century
Variable 12/31/2006 $8,712 $9,396 $4,867 $12,044 $8,670 $8,669 $9,393
Portfolios, Inc.
- ------------------- ---------- ----------- ----------- ----------- ------------ ---------- ----------- -----------
Total
Compensation from
the American $101,999 $110,000 $57,000 $141,000 $101,500 $101,500 $110,000
Century Family of
Funds(8)
- ------------------- ---------- ----------- ----------- ----------- ------------ ---------- ----------- -----------
American Century
World Mutual 11/30/2006 $8,864 $9,635 $4,333 $12,444 $8,819 $8,902 $9,680
Funds, Inc.
- ------------------- ---------- ----------- ----------- ----------- ------------ ---------- ----------- -----------
Total
Compensation from
the American $97,833 $106,333 $47,333 $137,333 $97,333 $98,333 $106,833
Century Family of
Funds(9)
- ------------------- ---------- ----------- ----------- ----------- ------------ ---------- ----------- -----------
(1) MR. OLSON WAS PAID AS AN ADVISORY BOARD MEMBER.
(2) INCLUDES COMPENSATION PAID BY THE INVESTMENT COMPANIES OF THE AMERICAN
CENTURY FAMILY OF FUNDS SERVED BY THIS BOARD FOR THE ONE YEAR PERIOD ENDED
7/31/2006. THE TOTAL AMOUNT OF DEFERRED COMPENSATION INCLUDED IN THE
PRECEDING TABLE IS AS FOLLOWS: MR. BROWN, $17,434; DR. HALL, $96,166; MR.
OLSON, $30,167; MR. PRATT, $18,926; MR. SAYERS, $96,666; AND MR. WEBSTER,
$35,309.
(3) INCLUDES COMPENSATION PAID BY THE INVESTMENT COMPANIES OF THE AMERICAN
CENTURY FAMILY OF FUNDS SERVED BY THIS BOARD FOR THE ONE YEAR PERIOD ENDED
3/31/2006. THE TOTAL AMOUNT OF DEFERRED COMPENSATION INCLUDED IN THE
PRECEDING TABLE IS AS FOLLOWS: MR. BROWN, $17,300; DR. HALL, $95,500; MR.
OLSON, $11,000; MR. PRATT, $18,825, MR. SAYERS $96,000 AND MR. WEBSTER,
$44,975.
(4) INCLUDES COMPENSATION PAID TO THE DIRECTORS FROM AUGUST 1, 2006 TO DECEMBER
31, 2006, AND ESTIMATED FUTURE PAYMENTS FOR SIX-MONTH PERIOD (FROM JANUARY
1, 2007 TO JULY 31, 2007) BECAUSE THE FUNDS HAVE NOT BEEN IN EXISTENCE FOR
A FULL FISCAL YEAR. IT ALSO INCLUDES ACTUAL AND ESTIMATED AMOUNTS DEFERRED
AT THE ELECTION OF THE DIRECTORS UNDER AMERICAN CENTURY MUTUAL FUNDS'
INDEPENDENT DIRECTORS' DEFERRED COMPENSATION PLAN.
(5) INCLUDES COMPENSATION PAID BY THE INVESTMENT COMPANIES OF THE AMERICAN
CENTURY FAMILY OF FUNDS SERVED BY THIS BOARD FOR THE ONE YEAR PERIOD ENDED
7/31/2006. THE ESTIMATED TOTAL AMOUNT OF DEFERRED COMPENSATION INCLUDED IN
THE PRECEDING TABLE IS AS FOLLOWS: MR. BROWN, $17,434; DR. HALL, $96,166;
MR. OLSON, $30,167; MR. PRATT, $18,926, MR. SAYERS $96,666 AND MR. WEBSTER,
$35,309.
(6) INCLUDES COMPENSATION PAID BY THE INVESTMENT COMPANIES OF THE AMERICAN
CENTURY FAMILY OF FUNDS SERVED BY THIS BOARD FOR THE ONE YEAR PERIOD ENDED
10/31/2006. THE TOTAL AMOUNT OF DEFERRED COMPENSATION INCLUDED IN THE
PRECEDING TABLE IS AS FOLLOWS: MR. BROWN, $17,533; DR. HALL, $96,667; MR.
OLSON, $43,667; MR. PRATT, $19,000; MR. SAYERS, $97,167; AND MR. WEBSTER,
$27,433.
(7) INCLUDES COMPENSATION PAID BY THE INVESTMENT COMPANIES OF THE AMERICAN
CENTURY FAMILY OF FUNDS SERVED BY THIS BOARD FOR THE ONE YEAR PERIOD ENDED
11/30/2006. THE TOTAL AMOUNT OF DEFERRED COMPENSATION INCLUDED IN THE
PRECEDING TABLE IS AS FOLLOWS: MR. BROWN, $17,566; DR. HALL, $96,833; MR.
OLSON, $47,333; MR. PRATT, $19,025; MR. SAYERS, $97,333; AND MR. WEBSTER,
$25,092.
(8) INCLUDES COMPENSATION PAID BY THE INVESTMENT COMPANIES OF THE AMERICAN
CENTURY FAMILY OF FUNDS SERVED BY THIS BOARD FOR THE ONE YEAR PERIOD ENDED
12/31/2006. THE TOTAL AMOUNT OF DEFERRED COMPENSATION INCLUDED IN THE
PRECEDING TABLE IS AS FOLLOWS: MR. BROWN, $17,599; DR. HALL, $97,000; MR.
OLSON, $57,000; MR. PRATT, $19,050; MR. SAYERS, $101,500; AND MR. WEBSTER,
$22,600.
(9) INCLUDES COMPENSATION PAID BY THE INVESTMENT COMPANIES OF THE AMERICAN
CENTURY FAMILY OF FUNDS SERVED BY THIS BOARD FOR THE ONE YEAR PERIOD ENDED
11/30/2006. THE TOTAL AMOUNT OF DEFERRED COMPENSATION INCLUDED IN THE
PRECEDING TABLE IS AS FOLLOWS: MR. BROWN, $17,566; DR. HALL, $96,833; MR.
OLSON, $47,333; MR. PRATT, $19,025; MR. SAYERS, $97,333; AND MR. WEBSTER,
$25,092.
NOTE: NONE OF THE INTERESTED DIRECTORS OR OFFICERS OF THE FUNDS RECEIVE
COMPENSATION FROM THE FUNDS.
The Issuers have adopted the American Century Mutual Funds' Independent
Directors' Deferred Compensation Plan. Under the plan, the Independent Directors
may defer receipt of all or any part of the fees to be paid to them for serving
as Directors of the Funds.
All deferred fees are credited to an account established in the name of the
directors. The amounts credited to the account then increase or decrease, as the
case may be, in accordance with the performance of one or more of the American
Century Funds that are selected by the director. The account balance continues
to fluctuate in accordance with the performance of the selected Fund or Funds
until final payment of all amounts credited to the account. Directors are
allowed to change their designation of Funds from time to time.
No deferred fees are payable until such time as a director resigns, retires
or otherwise ceases to be a member of the Board. Directors may receive deferred
fee account balances either in a lump sum payment or in substantially equal
installment payments to be made over a period not to exceed 10 years. Upon the
death of a director, all remaining deferred fee account balances are paid to the
director's beneficiary or, if none, to the director's estate.
The plan is an unfunded plan and, accordingly, the Funds have no obligation
to segregate assets to secure or fund the deferred fees. To date, the Funds have
voluntarily funded their obligations. The rights of directors to receive their
deferred fee account balances are the same as the rights of a general unsecured
creditor of the Funds. The plan may be terminated at any time by the
administrative committee of the plan. If terminated, all deferred fee account
balances will be paid in a lump sum.
Exhibit A to this Proxy Statement shows the dollar range the Nominees
beneficially owned as of December 31, 2006 in the equity securities in any of
the Funds, and, on an aggregate basis, equity securities in all of the Issuers.
On December 23, 1999, American Century Services, LLC (ACS), an affiliate of
the Advisor entered into an agreement with DST Systems, Inc. (DST) under which
DST would provide back office software and support services for transfer agency
services provided by ACS (the "Agreement"). ACS pays DST fees based in part on
the number of accounts and the number and type of transactions processed for
those accounts. For the twelve months ended December 31, 2006, DST received
$22,142,003 in fees from ACS. DST's revenue for the calendar year ended December
31, 2006, was approximately $2.24 billion.
Ms. Strandjord is a director of DST and a holder of 35,383 shares and
possesses options to acquire an additional 55,875 shares of DST common stock,
the sum of which is less than one percent (1%) of the shares outstanding.
Because of her official duties as a director of DST, she may be deemed to have
an "indirect interest" in the Agreement. However, the Boards were not required
to nor did they approve or disapprove the Agreement, since the provision of the
services covered by the Agreement is within the discretion of ACS. DST was
chosen by ACS for its industry-leading role in providing cost-effective
back office support for mutual fund service providers such as ACS. DST is the
largest mutual fund transfer agent, servicing more than 75 million mutual fund
accounts on its shareholder recordkeeping system. Ms. Strandjord's role as a
director of DST was not considered by ACS; she was not involved in any way with
the negotiations between ACS and DST; and her status as a director of either DST
or the Funds was not a factor in the negotiations. The Boards and counsel to the
Independent Directors of the Funds have concluded that the existence of this
Agreement does not impair Ms. Strandjord's ability to serve as an independent
director under the 1940 Act.
BENEFICIAL OWNERSHIP OF AFFILIATES BY PROPOSED INDEPENDENT DIRECTORS
No Independent Director or his or her immediate family members beneficially
owned shares of the Advisor, the Issuers' principal underwriter or any other
person directly or indirectly controlling, controlled by, or under common
control with the Advisor or the Issuers' principal underwriter as of December
31, 2006.
OFFICERS
The following table presents certain information about the executive
officers of the Issuers. Each officer serves as an officer for each of the 15
investment companies advised by the Advisor or by American Century Global
Investment Management, Inc., a wholly owned subsidiary of the Advisor, unless
otherwise noted. No officer is compensated for his or her service as an officer
of the Funds. The listed officers are interested persons of the Funds and are
appointed or re-appointed on an annual basis. The mailing address for each of
the officers listed below is 4500 Main Street, Kansas City, Missouri 64111.
- ----------------------- -------------------------- ----------------------------------
NAME OFFICES WITH THE ISSUERS PRINCIPAL OCCUPATION DURING THE
FIRST YEAR OF SERVICE PAST FIVE YEARS
- ----------------------- -------------------------- ----------------------------------
Jonathan S. Thomas Advisory Board Member President and Chief Executive
and President since 2007 Officer, American Century
Companies, Inc. ("ACC") (March
2007 to present); Chief
Administrative Officer, ACC
(February 2006 to February 2007);
Executive Vice President, ACC
(November 2005 to February 2007).
Also serves as: President,
Chief Executive Officer and
Director, American Century
Services, LLC ("ACS");
Executive Vice President,
American Century Investment
Management ("ACIM"), American
Century Global Investment
Management ("ACGIM"); Director,
ACIM, ACGIM, ACIS and other ACC
subsidiaries; Managing
Director, Morgan Stanley (March
2000 to November 2005)
- ----------------------- -------------------------- ----------------------------------
Maryanne L. Roepke Chief Compliance Officer Chief Compliance Officer, ACIM,
since 2006 and Senior ACGIM and ACS (August 2006 to
Vice President since 2000 present); Assistant Treasurer,
ACC (January 1995 to August
2006); and Treasurer and Chief
Financial Officer, various
American Century funds (July
2000 to August 2006). Also
serves as: Senior Vice
President, ACS
- ----------------------- -------------------------- ----------------------------------
Charles A. Etherington Senior Vice President Attorney, ACC (February 1994 to
since 2006 and General present); General Counsel, ACC
Counsel since 2007 (March 2007 to present); Senior
Vice President and General
Counsel, ACIM, ACGIM, ACS and
other ACC subsidiaries.
- ----------------------- -------------------------- ----------------------------------
Robert J. Leach Vice President, Vice President, ACS (February 2000
Treasurer and to present); and Controller,
Chief Financial Officer various American Century funds
since 2006 (1997 to September 2006)
- ----------------------- -------------------------- ----------------------------------
C. Jean Wade Controller since 1996 Vice President, ACS (February 2000
to present)
- ----------------------- -------------------------- ----------------------------------
Jon W. Zindel Tax Officer since 1998 Chief Financial Officer and Chief
Accounting Officer, ACC (March
2007 to present); Vice
President, ACC (October 2001 to
present); Vice President,
certain ACC subsidiaries (July
2001 to August 2006); Vice
President, Corporate Tax, ACS
(April 1999 to August 2006).
Also serves as: Chief Financial
Officer, Chief Accounting
Officer and Senior Vice
President, ACIM, ACGIM, ACS,
and other ACC subsidiaries;
Chief Accounting Officer and
Senior Vice President, ACIS
- ----------------------- -------------------------- ----------------------------------
SHARE OWNERSHIP
The following table lists the classes for which the directors and officers
of each Fund, both individually and as a group, owned more than 1% of the shares
of the class. For all classes not listed below, each director and officer
individually, and as a group, owned beneficially less than 1% of the outstanding
shares of the class. Please see Exhibit B for a list of those persons who, as of
March 15, 2007, owned of record or beneficially 5% or more of the outstanding
shares of the Issuers.
AS OF MARCH 21, 2007
AMOUNT AND NATURE
TITLE OF CLASS NAME OF BENEFICIAL OWNER OF BENEFICIAL OWNERSHIP PERCENT OF CLASS
- --------------- ------------------------- ----------------------- ----------------
Capital Growth Jonathan S. Thomas 852.5154 shares 10.35%
Investor Class
Capital Growth Directors/Executive Officers/ 852.5154 shares 10.35%
Investor Class Nominees As a Group
FEES PAID TO INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The aggregate fees paid to Deloitte & Touche LLP and other member firms
of Deloitte Touche Tahmatsu and their respective affiliates (collectively
referred to as the "Deloitte Entities") for professional services rendered by
the Deloitte Entities for the audit of the annual financial statements of the
Funds and other professional services for the fiscal years ended as indicated
below were:
- ------------------------------------------ --------------- ------------ --------------- ---------------
ISSUER AUDIT FEES AUDIT RELATED TAX FEES ALL OTHER FEES
(a) FEES (c) (d)
(b)
- ------------------------------------------ --------------- ------------ --------------- ---------------
AMERICAN CENTURY ASSET ALLOCATION
PORTFOLIOS, INC
- ------------------------------------------ --------------- ------------ --------------- ---------------
07/31/2005 $ 57,990 $ - $ 13,970 $ -
- ------------------------------------------ --------------- ------------ --------------- ---------------
07/31/2006 $ 69,670 $ - $ 15,000 $ -
- ------------------------------------------ --------------- ------------ --------------- ---------------
AMERICAN CENTURY CAPITAL PORTFOLIOS, INC.
- ------------------------------------------ --------------- ------------ --------------- ---------------
03/31/2005 $ 115,236 $ - $ 14,395 $ -
- ------------------------------------------ --------------- ------------ --------------- ---------------
03/31/2006 $ 114,418 $ - $ 12,996 $ -
- ------------------------------------------ --------------- ------------ --------------- ---------------
AMERICAN CENTURY GROWTH FUNDS, INC.
- ------------------------------------------ --------------- ------------ --------------- ---------------
07/31/2005 $ 0 $ - $ 0 $ -
- ------------------------------------------ --------------- ------------ --------------- ---------------
07/31/2006 $ 31,197 $ - $ 4,200 $ -
- ------------------------------------------ --------------- ------------ --------------- ---------------
AMERICAN CENTURY MUTUAL FUNDS, INC.
- ------------------------------------------ --------------- ------------ --------------- ---------------
10/31/2005 $ 218,979 $ - $ 21,496 $ -
- ------------------------------------------ --------------- ------------ --------------- ---------------
10/31/2006 $ 270,281 $ - $ 33,106 $ -
- ------------------------------------------ --------------- ------------ --------------- ---------------
AMERICAN CENTURY STRATEGIC ASSET
ALLOCATIONS, INC.
- ------------------------------------------ --------------- ------------ --------------- ---------------
11/30/2005 $ 58,868 $ - $ 7,223 $ -
- ------------------------------------------ --------------- ------------ --------------- ---------------
11/30/2006 $ 61,409 $ - $ 7,431 $ -
- ------------------------------------------ --------------- ------------ --------------- ---------------
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
- ------------------------------------------ --------------- ------------ --------------- ---------------
12/31/2005 $ 152,519 $ - $ 20,116 $ -
- ------------------------------------------ --------------- ------------ --------------- ---------------
12/31/2006 $ 150,772 $ - $ 20,121 $ -
- ------------------------------------------ --------------- ------------ --------------- ---------------
AMERICAN CENTURY WORLD MUTUAL FUNDS, INC
- ------------------------------------------ --------------- ------------ --------------- ---------------
11/30/2005 $ 152,470 $ - $ 23,535 $ -
- ------------------------------------------ --------------- ------------ --------------- ---------------
11/30/2006 $ 202,398 $ - $ 32,267 $ -
- ------------------------------------------ --------------- ------------ --------------- ---------------
(a) Audit Fees
These fees relate to professional services rendered by the Deloitte
Entities for the audits of the Funds' annual financial statements or services
normally provided by an independent registered public accounting firm in
connection with statutory and regulatory filings or engagements. These services
included the audits of the financial statements of the Funds, issuance of
consents, income tax provision procedures and assistance with review of
documents filed with the Securities and Exchange Commission.
(b) Audit Related Fees
These fees relate to assurance and related services by the Deloitte
Entities in connection with semi-annual financial statements.
(c) Tax Fees
These fees relate to professional services rendered by the Deloitte
Entities for tax compliance, tax advice, and tax planning. These services relate
to the review of the Funds' federal and state income tax returns, review of
excise tax calculations and returns, and a review of the Funds' calculations of
capital gains and income distributions.
(d) All Other Fees
These fees relate to products and services provided by the Deloitte
Entities other than those reported under "Audit Fees," "Audit-Related Fees," and
"Tax Fees."
AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES
The Audit Committee approves the engagement of the accountant prior to the
accountant rendering any audit or non-audit services to the Issuers. The
aggregate non-audit fees billed by the Deloitte Entities for services rendered
to the Advisor and service affiliates for the years ended December 31, 2005 and
December 31, 2006 were $223,787 and $108,186, respectively.
The Audit Committee considered and concluded that the provisions for
non-audit services to the Advisor and its affiliates that did not require
pre-approval are compatible with maintaining Deloitte's independence.
SHAREHOLDER APPROVAL
Proposal 1, the election of the Directors, must be approved by a plurality
of the votes cast in person or by proxy at the Meeting at which a quorum exists.
The shareholders of each Issuer will vote separately for the election of
Directors. The shareholders of each Issuer will vote together as a single class
and the voting power of the shares of each Fund that is a series of an Issuer
will be counted together in determining the results of the voting for Proposal
1.
THE BOARDS RECOMMEND THAT THE SHAREHOLDERS VOTE TO ELECT EACH OF THE NOMINEES.
PROPOSAL 2
APPROVAL OF A CHANGE IN THE FEE STRUCTURE OF THE ADVISOR CLASS
SHARES OF THE ADVISOR FUNDS
OVERVIEW AND RELATED INFORMATION
On November 29, 2006 and March 7, 2007, the Boards approved, subject to
shareholder approval, an increase of 25 basis points (0.25%) in the unified
management fee for the Advisor Class of the Advisor Funds while simultaneously
approving a decrease of 25 basis points in the Rule 12b-1 fee charged by the
Advisor Class of the Advisor Funds, resulting in no change to the total expense
ratios. The increase in the unified management fee and corresponding decrease in
the Rule 12b-1 fee are designed to move the fee for the provision of certain
shareholder/administrative services from the Rule 12b-1 fee to the unified
management fee. Such shareholder/administrative services may include providing
individual and custom investment advisory services to clients of financial
intermediaries as well as recordkeeping, and administrative services for clients
that would otherwise be performed by American Century's transfer agent. The
shareholder/administrative services, which will not change, do not encompass
distribution-related services. This modification will make the fee structure of
the Advisor Class shares of the Advisor Funds more consistent with the other
share classes of the American Century Funds. Any reimbursement paid to financial
intermediaries for the provision of shareholder/administrative services will now
be paid out of the unified management fee received by the Advisor and not the
Rule 12b-1 fee.
CONSEQUENCES OF APPROVAL OF THE CHANGE IN FEE STRUCTURE
The proposed 25 basis point increase in the unified management fee is not
expected to have any effect on the total expense ratio of the Advisor Class
shares of the Advisor Funds. As previously noted, the 25 basis point increase in
the unified management fee will be offset by a corresponding decrease of 25
basis points in the Rule 12b-1 fee. If shareholders do not approve the increase
in the unified management fee, then the administrative/shareholder services fee
will continue to be paid out of the Rule 12b-1 fee and the proposed decrease in
the Rule 12b-1 fee will not take effect. If approved by shareholders, the
current advisory contracts of the Advisor Funds will be amended to reflect the
25 basis point increase in the unified management fee with an effective date of
September 1, 2007. Hereafter, the amended contracts shall be referred to as the
"New Advisory Agreements." If this Proposal is not approved by one or more of
the Advisor Classes of the Advisor Funds, then American Century may elect not to
proceed with the Proposal with respect to some or all of the Advisor Funds.
This Proposal is part of a larger set of initiatives designed to streamline
American Century's mutual fund offering and better align them with investor
buying preferences and market opportunities. As part of this larger set of
initiatives, the Boards recently approved a proposal to reclassify the Advisor
Class Shares of Balanced, Life Sciences, and Technology as Investor Class shares
of the same funds. Advisor Class shareholders of these funds will receive a
separate proxy statement/prospectus describing this proposal in detail and will
have an opportunity to vote on it. If approved by the Advisor Class shareholders
of these three funds, Advisor Class shares would cease to exist; the Change in
Fee Structure Proposal contained in this proxy would become moot; and therefore,
even if approved the Change In Fee Structure Proposal would not take effect for
Balanced, Life Sciences and Technology.
Also as part of this larger set of initiatives, the Boards recently approved a
proposal to reclassify the A Class Shares of Large Company Value, Value, Select,
Strategic Allocation: Conservative, Strategic Allocation: Moderate, Strategic
Allocation: Aggressive, Global Growth, and International Growth as Advisor Class
shares of the same funds. A Class shareholders of these funds will receive a
separate proxy statement/prospectus describing this proposal in detail and will
have an opportunity to vote on it. If approved by the A Class shareholders, the
current A Class shares would cease to exist; the Change in Fee Structure
Proposal contained in this proxy would take effect; such shares would be subject
to a maximum 5.75% front-end sales load and the Advisor Class shares would be
renamed as A Class shares. However, the front-end sales load will not apply to
current Advisor Class shareholders who purchase additional shares in the same
accounts. Additionally, after the Advisor Class shares have been renamed as A
Class shares, shareholders will be able to exchange their shares for A Class
shares of other American Century Funds.
Lastly, as part of this larger set of initiatives, it is anticipated that
if the Change in Fee Structure Proposal is approved, the Advisor Class shares of
Emerging Markets, Equity Income, Heritage, Real Estate and Ultra will be renamed
as "A Class" shares. Additionally, it is anticipated that a maximum front-end
sales load of 5.75% will be imposed on the renamed A Class shares. However, the
front-end sales load will not apply to current Advisor Class shareholders who
purchase additional shares in the same accounts. Additionally, after the Advisor
Class shares have been renamed as A Class shares, shareholders will be able to
exchange their shares for A Class shares of other American Century Funds.
INFORMATION REGARDING THE ADVISOR
American Century Investment Management, Inc., located at 4500 Main Street,
Kansas City, Missouri 64111, is wholly owned by American Century Companies, Inc.
James E. Stowers Jr. owns the majority of the outstanding stock of American
Century Companies, Inc. Maryanne L. Roepke, Jon W. Zindel, Charles A.
Etherington, David H. Reinmiller and Otis H. Cowan are all officers of the Funds
and the Advisor, but are not directors of the Advisor, who own common stock of
American Century Companies, Inc.
The address for each officer and director of the Advisor is 4500 Main
Street, Kansas City, Missouri 64111. The following table lists the names,
positions, and principal occupations of the directors and principal executive
officer of the Advisor:
- -------------------- ---------------------------- ---------------------------------------------
NAME POSITION PRINCIPAL OCCUPATIONS
- -------------------- ---------------------------- ---------------------------------------------
Enrique Chang President, Chief Executive Chief Investment Officer
Officer and Chief Investment
Officer
- -------------------- ---------------------------- ---------------------------------------------
James E. Stowers Jr. Director Founder, Co-Chairman, Director and
Controlling Shareholder, ACC; Director, ACIM,
ACGIM, ACS, ACIS and
other ACC subsidiaries
- -------------------- ---------------------------- ---------------------------------------------
Jonathan S. Thomas Director and Executive Vice President and Chief Executive Officer, ACC;
President President, Chief Executive Officer, and
Director, ACS; Director, ACIM, ACGIM, ACIS
and other ACC subsidiaries
- -------------------- ---------------------------- ---------------------------------------------
DESCRIPTION OF THE NEW ADVISORY AGREEMENTS
The Advisor currently acts as each Advisor Fund's advisor pursuant to
Advisory Agreements (the "Current Advisory Agreements"). The following table
lists the date of the Current Advisory Agreements, as well as the dates they
were last submitted to a vote of the shareholders and the purpose of the
shareholder vote for each Fund. Under the New Advisory Agreement, the Advisor
will provide the same services to the Advisor Funds as under the Current
Advisory Agreements.
- ------------------------ ----------------- ------------------- -------------------------------------------
DATE CURRENT
CURRENT ADVISORY ADVISORY AGREEMENT PURPOSE OF LAST SUBMISSION TO SHAREHOLDERS
AGREEMENT LAST SUBMITTED TO
FUND DATE SHAREHOLDERS
- ------------------------ ----------------- ------------------- -------------------------------------------
Equity Income 8-1-2006 7-30-1997 Approval of Management Agreement with ACIM
- ------------------------ ----------------- ------------------- -------------------------------------------
Large Company Value 8-1-2006 7-28-1999 Initial shareholder consent
- ------------------------ ----------------- ------------------- -------------------------------------------
Mid Cap Value 8-1-2006 7-30-2004 Initial shareholder consent
- ------------------------ ----------------- ------------------- -------------------------------------------
Real Estate 8-1-2006 12-17-1999 Approval of fee change in Management Agreement
- ------------------------ ----------------- ------------------- -------------------------------------------
Small Cap Value 8-1-2006 7-30-1998 Initial shareholder consent
- ------------------------ ----------------- ------------------- -------------------------------------------
Value 8-1-2006 7-30-1997 Approval of Management Agreement with ACIM
- ------------------------ ----------------- ------------------- -------------------------------------------
Legacy Large Cap 5-15-2006 5-31-2006 Initial shareholder consent
- ------------------------ ----------------- ------------------- -------------------------------------------
Legacy Focused Large Cap 5-15-2006 5-31-2006 Initial shareholder consent
- ------------------------ ----------------- ------------------- -------------------------------------------
Legacy Multi Cap 5-15-2006 5-31-2006 Initial shareholder consent
- ------------------------ ----------------- ------------------- -------------------------------------------
Balanced 8-1-2006 7-30-1997 Approval of Management Agreement with ACIM
- ------------------------ ----------------- ------------------- -------------------------------------------
Capital Value 8-1-2006 3-30-1999 Initial shareholder consent
- ------------------------ ----------------- ------------------- -------------------------------------------
Growth 8-1-2006 7-30-1997 Approval of Management Agreement with ACIM
- ------------------------ ----------------- ------------------- -------------------------------------------
Heritage 8-1-2006 7-30-1997 Approval of Management Agreement with ACIM
- ------------------------ ----------------- ------------------- -------------------------------------------
Select 8-1-2006 7-30-1997 Approval of Management Agreement with ACIM
- ------------------------ ----------------- ------------------- -------------------------------------------
Ultra 8-1-2006 7-30-1997 Approval of Management Agreement with ACIM
- ------------------------ ----------------- ------------------- -------------------------------------------
Vista 8-1-2006 7-30-1997 Approval of Management Agreement with ACIM
- ------------------------ ----------------- ------------------- -------------------------------------------
Strategic Allocation: 8-1-2006 7-30-1997 Approval of Management Agreement with ACIM
Conservative
- ------------------------ ----------------- ------------------- -------------------------------------------
Strategic Allocation: 8-1-2006 7-30-1997 Approval of Management Agreement with ACIM
Moderate
- ------------------------ ----------------- ------------------- -------------------------------------------
Strategic Allocation: 8-1-2006 7-30-1997 Approval of Management Agreement with ACIM
Aggressive
- ------------------------ ----------------- ------------------- -------------------------------------------
Emerging Markets 8-1-2006 7-30-1997 Approval of Management Agreement with ACIM
- ------------------------ ----------------- ------------------- -------------------------------------------
Global Growth 8-1-2006 11-30-1998 Initial shareholder consent
- ------------------------ ----------------- ------------------- -------------------------------------------
International Discovery 8-1-2006 7-30-1997 Approval of fee change in Management Agreement
- ------------------------ ----------------- ------------------- -------------------------------------------
International Growth 8-1-2006 7-30-1997 Approval of fee change in Management Agreement
- ------------------------ ----------------- ------------------- -------------------------------------------
Life Sciences 8-1-2006 6-30-2000 Initial shareholder consent
- ------------------------ ----------------- ------------------- -------------------------------------------
Technology 8-1-2006 6-30-2000 Initial shareholder consent
- ------------------------ ----------------- ------------------- -------------------------------------------
COMPARISON OF THE CURRENT ADVISORY AGREEMENTS AND THE NEW ADVISORY
AGREEMENTS
The terms of each New Advisory Agreement are identical to those of the
corresponding Current Advisory Agreement, except for the management fees
payable, which have been increased by 25 basis points to account for the
transfer of the administrative/shareholder reimbursements from the Rule 12b-1
fee to the unified management fee, and the effective and termination dates. The
New Advisory Agreement will continue in effect from year to year if such
continuance is approved for the Funds at least annually in the manner required
by the 1940 Act and the rules and regulations thereunder. Please see Exhibit C
for the current rate of compensation paid under the Current Advisory Agreements
for each Advisor Fund and the pro forma fees to be paid under the New Advisory
Agreements after giving effect to the Change In Fee Structure Proposal.
ADVISORY SERVICES
The services to be provided by the Advisor to the Advisor Funds under the
New Advisory Agreement will be identical to those services that were provided by
the Advisor under the Current Advisory Agreement. Both the Current Advisory
Agreement and the New Advisory Agreement provide that the Advisor will: (i)
decide what securities to buy and sell for each Advisor Fund's portfolio and
(ii) select brokers and dealers to carry out portfolio securities transactions
for each Advisor Fund.
EXPENSES
The provisions of the New Advisory Agreement regarding expenses are
identical to the provisions of the Current Advisory Agreement. Under the terms
of the Current Advisory Agreement and the New Advisory Agreement, the Advisor
will bear all expenses incurred by it in the performance of its
responsibilities. Each Advisor Fund is responsible for custody fees and other
charges and expenses of each Advisor Fund's operations such as compensation of
the Independent Directors, independent accountants and legal counsel of the
Independent Directors.
COMPENSATION
The following table shows the aggregate amount paid by each Fund under the
unified management fee and Rule 12b-1 fee for 2006, and the aggregate amount
that would have been paid if the proposed unified management fee and Rule 12b-1
fee had been in effect during 2006.
FUND BEFORE AFTER ADVISOR NET $ CHANGE BEFORE RULE AFTER RULE NET DECREASE TOTAL NET
ADVISOR FEE FEE CHANGE AND NET % 12B-1 12B-1 IN RULE 12B-1 CHANGE IN
CHANGE CHANGE DECREASE DECREASE FEES FEES
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
EQUITY INCOME $6,575,479 $8,848,950 $2,273,471 $4,546,942 $2,273,471 ($2,273,471) $0
34.57%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
LARGE COMPANY $882,830 $1,260,195 $377,365 $754,730 $377,365 ($377,365) $0
VALUE
42.74%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
MID CAP VALUE $25,114 $33,485 $8,371 $16,742 $8,371 ($8,371) $0
33.33%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
REAL ESTATE $2,092,355 $2,675,475 $583,120 $1,166,240 $583,120 ($583,120) $0
27.87%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
SMALL CAP VALUE $4,059,299 $5,074,939 $1,015,640 $2,031,280 $1,015,640 ($1,015,640) $0
25.02%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
VALUE $1,760,286 $2,353,165 $592,879 $1,185,758 $592,879 ($592,879) $0
33.68%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
LEGACY FOCUSED $1,108 $1,434 $326 $652 $326 ($326) $0
LARGE CAP
29.42%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
LEGACY LARGE CAP $1,053 $1,363 $310 $620 $310 ($310) $0
29.44%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
LEGACY MULTI CAP $838 $1,071 $233 $466 $233 ($233) $0
27.80%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
BALANCED $101,630 $140,719 $39,089 $78,178 $39,089 ($39,089) $0
38.46%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
CAPITAL VALUE $132,429 $171,426 $38,997 $77,994 $38,997 ($38,997) $0
29.45%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
GROWTH $617,883 $824,347 $206,464 $412,928 $206,464 ($206,464) $0
33.41%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
HERITAGE $304,745 $406,327 $101,582 $203,164 $101,582 ($101,582) $0
33.33%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
SELECT $195,940 $261,253 $65,313 $130,626 $65,313 ($65,313) $0
33.33%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
ULTRA $3,929,672 $5,268,710 $1,339,038 $2,678,076 $1,339,038 ($1,339,038) $0
34.08%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
VISTA $1,645,575 $2,194,100 $548,525 $1,097,050 $548,525 ($548,525) $0
33.33%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
STRATEGIC $1,170,818 $1,569,615 $398,797 $797,594 $398,797 ($398,797) $0
CONSERVATIVE
34.06%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
STRATEGIC $3,348,501 $4,397,162 $1,048,661 $2,097,322 $1,048,661 ($1,048,661) $0
MODERATE
31.32%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
STRATEGIC $3,030,044 $3,843,878 $813,834 $1,627,668 $813,834 ($813,834) $0
AGGRESSIVE
26.86%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
EMERGING MARKETS $76,363 $88,762 $12,399 $24,798 $12,399 ($12,399) $0
16.24%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
GLOBAL GROWTH $53,789 $66,596 $12,807 $25,614 $12,807 ($12,807) $0
23.81%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
INTERNATIONAL $298 $362 $64 $128 $64 ($64) $0
DISCOVERY
21.48%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
INTERNATIONAL $3,048,835 $3,811,418 $762,583 $1,525,166 $762,583 ($762,583) $0
GROWTH
25.01%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
LIFE SCIENCES $1,744 $2,107 $363 $726 $363 ($363) $0
20.81%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
TECHNOLOGY $1,522 $1,826 $304 $608 $304 ($304) $0
19.97%
- ---------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
ADVISORY SERVICES TO OTHER FUNDS
The following table provides information regarding mutual funds for which
the Advisor provides investment advisory services and have investment objectives
and strategies that are similar to those of the Advisor Funds. All of the
information below is provided for the calendar year ended December 31, 2006.
- ----------------------- --------------------- -------------------- --------------------- ------------------
EFFECTIVE
MANAGEMENT FEE (AS
A PERCENTAGE OF
YTD AVERAGE NET ACTUAL MANAGEMENT AVERAGE DAILY NET
FUND SUB-ADVISOR ASSETS ($) FEE ASSETS)(%
- -----------------------------------------------------------------------------------------------------------
The following funds are managed pursuant to a similar investment strategy as Growth.
- ----------------------- --------------------- -------------------- --------------------- ------------------
Principal Partners ACIM $844,555,902 $3,047,456 0.361%
LargeCap Growth Fund
II
- ----------------------- --------------------- -------------------- --------------------- ------------------
Principal Partners
Large Cap Growth
Fund(1) ACIM $36,981,903 $131,588 0.356%
- -----------------------------------------------------------------------------------------------------------
The following fund is managed pursuant to a similar investment strategy as Select.
- ----------------------- --------------------- -------------------- --------------------- ------------------
ING American Century ACIM $366,842,595 $1,463,143 0.399%
Select Portfolio
- -----------------------------------------------------------------------------------------------------------
The following funds are managed pursuant to a similar investment strategy as Vista.
- ----------------------- --------------------- -------------------- --------------------- ------------------
RiverSource ACIM $248,213,334 $1,138,389 0.459%
Aggressive Growth
- ----------------------- --------------------- -------------------- --------------------- ------------------
John Hancock Vista
Fund ACIM $119,163,755 $532,977 0.447%
- ----------------------- --------------------- -------------------- --------------------- ------------------
John Hancock Vista
Trust ACIM $93,094,447 $416,263 0.447%
- -----------------------------------------------------------------------------------------------------------
The following funds are managed pursuant to a similar investment strategy as Balanced.
- ----------------------- --------------------- -------------------- --------------------- ------------------
AST American Century ACIM $185,304,220 $697,132 0.376%
Strategic Balanced
Portfolio(2)
- ----------------------- --------------------- -------------------- --------------------- ------------------
Strategic Partners
Balanced Fund ACIM $98,215,264 $368,008 0.375%
- -----------------------------------------------------------------------------------------------------------
The following fund is managed pursuant to a similar investment strategy as International Growth.
- ----------------------- --------------------- -------------------- --------------------- ------------------
VALIC International ACGIM $252,147,352 $1,628,087 0.646%
Growth I Fund
- -------------------------------------------------------------------------------------------------------------
The following fund is composed of multiple asset slices managed by a number of investment managers. Two of
these asset slices are managed by ACIM. One slice is managed pursuant to a similar investment strategy as
International Opportunities. The other slice is managed pursuant to a similar investment strategy as
International Discovery.
- ----------------------- --------------------- -------------------- --------------------- --------------------
Laudus International ACGIM $392,671,833(3) $3,153,076 0.803%
MarketMasters Fund
- -------------------------------------------------------------------------------------------------------------
The following fund is managed pursuant to a similar investment strategy to Mid Cap Value.
- ----------------------- --------------------- -------------------- --------------------- --------------------
MML Mid Cap Value Fund ACIM $213,590,319 $943,270 0.442%
- -------------------------------------------------------------------------------------------------------------
The following fund is managed by ACIM pursuant to two distinct investment strategies. One slice of the
fund's assets is managed pursuant to a similar investment strategy as Small Cap Value. The other slice of
the fund's assets is managed pursuant to a similar investment strategy as Mid Cap Value.
- ----------------------- --------------------- -------------------- --------------------- --------------------
ING American Century ACIM $113,114,250 $704,067(4) 0.622%(4)
Small-Mid Cap Value
Portfolio
- -------------------------------------------------------------------------------------------------------------
The following funds are managed (or in some cases, a particular slice of the assets of a fund is managed)
pursuant to a similar investment strategy as Large Company Value.
- ----------------------- --------------------- -------------------- --------------------- --------------------
TA IDEX American ACIM $291,110,198 $1,247,793 0.429%
Century Large Company
Value
- ----------------------- --------------------- -------------------- --------------------- --------------------
Partners Large Cap
Value Fund II ACIM $221,407,083 $875,093 0.395%
- ----------------------- --------------------- -------------------- --------------------- --------------------
VALIC Core Value ACIM $233,377,043 $1,007,807 0.432%
- ----------------------- --------------------- -------------------- --------------------- --------------------
AEGON American
Century Large Company
Value ACIM $126,428,646 $544,617 0.431%
- ----------------------- --------------------- -------------------- --------------------- --------------------
ING American Century
Large Company Value
Portfolio ACIM $105,810,629 $422,094 0.399%
- ----------------------- --------------------- -------------------- --------------------- --------------------
Principal Equity
Value Account ACIM $4,990,915 $19,598 0.393%
- -------------------------------------------------------------------------------------------------------------
The following fund is managed pursuant to a similar investment strategy as Ultra.
- ----------------------- --------------------- -------------------- --------------------- --------------------
VALIC Ultra Fund ACIM $647,931,776 $3,376,635 0.521%
- ----------------------- --------------------- -------------------- --------------------- --------------------
(1) THE PRINCIPAL PARTNERS LARGECAP GROWTH FUND MERGED WITH THE PRINCIPAL
PARTNERS LARGECAP GROWTH FUND II ON JANUARY 12, 2007.
(2) EFFECTIVE MAY 1, 2007, THE FUND WILL IMPLEMENT A REVISED INVESTMENT
STRATEGY AND CHANGE ITS NAME TO THE AST AMERICAN CENTURY STRATEGIC
ALLOCATION PORTFOLIO. THE ADVISOR WILL CONTINUE TO MANAGE THE ASSETS OF THE
FUND FOLLOWING THE CHANGE BUT WILL EMPLOY AN INVESTMENT MANAGEMENT STYLE
SIMILAR TO THAT OF AMERICAN CENTURY STRATEGIC ALLOCATION: MODERATE.
(3) FUND ASSETS ARE MANAGED BY A NUMBER OF INVESTMENT MANAGERS. ONLY ASSETS OF
THE FUND MANAGED BY THE ADVISOR ARE INCLUDED.
(4) ACIM WAIVED A PORTION OF ITS MANAGEMENT FEE DURING THE PERIOD ENDED
DECEMBER 31, 2006. WITHOUT THIS WAVIER, THE ACTUAL MANAGEMENT FEE AND
EFFECTIVE MANAGEMENT FEE PAID TO ACIM BY THE FUND WOULD HAVE BEEN $646,057
AND 0.571% RESPECTIVELY.
BASIS FOR THE BOARDS' APPROVAL OF THE NEW ADVISORY AGREEMENTS
At meetings held on November 29, 2006 and March 7, 2007, the Boards, including
the Independent Directors, considered and approved the proposed increase to the
unified management fee of the Advisor Class shares of the Advisor Funds and
accordingly approved the New Advisory Agreements for each Advisor Fund. In
approving the New Advisory Agreements, the Boards considered the following
factors:
o that the increase in the unified management fee is being proposed in
connection with a simultaneous decrease in the Rule 12b-1 fees of the
Advisor Class;
o that there will not be any change in the total expense ratio of the Advisor
Class as a result of the increase in the unified management fee;
o that if the proposed New Advisory Agreements are approved by shareholders
of the Advisor Class of Equity Income, Real Estate, Heritage, Ultra, and
Emerging Markets it is anticipated that the Advisor Class shares will be
renamed A Class shares, which would result in a front-end sales load being
added to the class; but would also result in the load being waived for
current shareholders of the Advisor Class who purchase future A Class
shares through the same accounts; and
o that the increase in the unified management fee of the Advisor Class will
make the class fee structure more consistent with the fee structure of
other share classes of the American Century Funds and industry practice.
At the meetings, after considering all information presented, the Boards,
including the Independent Directors, approved each New Advisory Agreements and
determined to recommend that shareholders approve the New Advisory Agreements.
No single factor was determinative in the Boards' analysis. The following
summary describes the most important, but not all, of the factors considered by
the Boards.
SERVICES TO BE PROVIDED
The Boards considered the services to be provided in consideration for the
25 basis point increase in the unified management fee. The Boards noted that the
administrative/shareholder services provided in consideration for the 25 basis
points would not change. Instead the administrative/shareholder services would
now be paid as part of the unified management fee instead of the Rule 12b-1 fee.
Such services may include providing individual and custom investment advisory
services to clients of financial intermediaries as well as recordkeeping, and
administrative services for clients that would otherwise be performed by
American Century's transfer agent. In some circumstances, the Advisor will pay
such service providers a fee for performing these services.
COSTS AND PROFITABILITY
The Boards did not request any specific information regarding the costs of
the services to be provided in consideration of the 25 basis point increase in
the unified management fee because the Boards had previously reviewed the
nature, scope and costs associated with the provision of the
administrative/shareholder services as part of its approval of the Rule 12b-1
plan on behalf of the Advisor Funds. The Boards had previously found the 25
basis point fee for administrative/shareholder services to be reasonable in
light of the scope and nature of the services provided.
BENEFITS TO THE ADVISOR
The Boards considered the information presented regarding the benefits to
the Advisor from the increase in the unified management fee. The Boards noted
that the 25 basis point increase in the unified management fee would be paid out
by the Advisor to the financial intermediary providing the
administrative/shareholder services to the beneficial owner of the shares. The
increased fee would only be retained by the Advisor to the extent that it was
providing the administrative/shareholder services on behalf of shareholders.
Currently, the Advisor retains the fee only to the extent it provides the
administrative/shareholder services on behalf of shareholders. There would not
be a net change the amount the Advisor retains.
ECONOMIES OF SCALE
The Boards considered that the total expense ratio of the Advisor Class
would not change as a result of the increase in the unified management fee due
to the corresponding decrease in the Rule 12b-1 fee. The Boards considered that
it was necessary to pay financial intermediaries a fee for providing
administrative/shareholder services to shareholders and that the payment of such
a fee by the Advisor Funds could help them increase their assets and therefore
potentially enable shareholders to realize future economies of scale. The Boards
recognized, however, that the proposal would not increase payments to financial
intermediaries.
Additional information regarding the factors the Boards considered in their
annual renewal of advisory contracts on behalf of the Advisor Funds can be found
in the report to shareholders for each respective Advisor Fund. To request a
report of a Fund please call the following number: 1-800-345-2021.
AFFILIATED BROKERAGE
American Century Investment Services, Inc., the Funds' distributor and the
Advisor are wholly owned, directly or indirectly, by ACC. JPMorgan Chase & Co.
(JPM) is an equity investor in ACC. The funds paid J.P. Morgan Securities Inc.
(JPMS), and JP Morgan Cazenove Limited (JPMC), subsidiaries of JPM, the following
brokerage commissions:
FUND FISCAL YEAR END AGGREGATE AMOUNT OF COMMISSIONS PERCENTAGE OF AGGREGATE BROKERAGE
PAID TO AFFILIATED BROKERS COMMISSIONS PAID TO AFFILIATED BROKER
- -------------------------------------------------------------------------------------------------------------
JPMS JPMC(1) JPMS JPMC(1)
- -------------------------------------------------------------------------------------------------------------
Select 10/31/06 $51,195 N/A 0.78% N/A
- -------------------------------------------------------------------------------------------------------------
Vista 10/31/06 $32,570 N/A 0.64% N/A
- -------------------------------------------------------------------------------------------------------------
Strategic Allocation: 11/30/06 $2,473 $39.17 0.57% 0.01%
Conservative
- -------------------------------------------------------------------------------------------------------------
Strategic Allocation: 11/30/06 $56,644 $253.38 2.26% 0.01%
Moderate
- -------------------------------------------------------------------------------------------------------------
Strategic Allocation: 11/30/06 $45,525 $236.70 2.30% 0.01%
Aggressive
- -------------------------------------------------------------------------------------------------------------
Emerging Markets 11/30/06 $184,409 $919 6.32% 0.03%
- -------------------------------------------------------------------------------------------------------------
Global Growth 11/30/06 $3,429 $400 0.49% 0.06%
- -------------------------------------------------------------------------------------------------------------
International 11/30/06 $289,630 $13,323 3.45% 0.16%
Discovery
- -------------------------------------------------------------------------------------------------------------
International Growth 11/30/06 $175,560 $1,720 2.45% 0.02%
- -------------------------------------------------------------------------------------------------------------
Technology 11/30/06 $19,768 $0 1.86% 0%
- -------------------------------------------------------------------------------------------------------------
Large Company Value 12/31/2006 $464 N/A 0.18% N/A
- -------------------------------------------------------------------------------------------------------------
Mid Cap Value 12/31/2006 $744 N/A 0.20% N/A
- -------------------------------------------------------------------------------------------------------------
Small Cap Value 12/31/2006 $2,400 N/A 0.08% N/A
- -------------------------------------------------------------------------------------------------------------
Value 12/31/2006 $959 N/A 0.03% N/A
- -------------------------------------------------------------------------------------------------------------
(1) JPMC BECAME A SUBSIDIARY OF JPM ON FEBRUARY 1, 2005.
SHAREHOLDER APPROVAL
Proposal 2, the approval of the change to the Advisor Class fee structure,
must be approved in accordance with Section 15(a) of the 1940 Act, which
requires the approval of the lesser of (i) more than 50% of the outstanding
shares of the applicable Class or (ii) 67% or more of the shares of that Class
present or represented by proxy at the Meeting if more than 50% of such shares
are present or represented by proxy. The shareholders of the Advisor Class of
each of the Advisor Funds will vote separately on Proposal 2.
THE DIRECTORS OF THE ADVISOR FUNDS RECOMMEND THAT THE SHAREHOLDERS
OF THE ADVISOR CLASS OF EACH ADVISOR FUND VOTE TO
APPROVE THE CHANGE TO THE ADVISOR CLASS FEE STRUCTURE
PROPOSAL 3
APPROVAL OF AN AMENDMENT TO THE INVESTMENT OBJECTIVE OF REAL ESTATE
OVERVIEW AND RELATED INFORMATION
At its meeting on November 29, 2006, the Board of American Century Capital
Portfolios, Inc. approved a proposal to amend the investment objective of Real
Estate. Real Estate's investment objective is a fundamental policy and may not
be changed without shareholder approval. The current fundamental investment
objective of the Fund states that "The fund seeks long-term capital
appreciation. Income is a secondary objective." This investment objective has
been in effect since the Fund's inception in September 1995. The Board proposes
to amend the fundamental investment objective to state that "The fund seeks high
total investment return through a combination of capital appreciation and
current income."
The goal of this proposal is to modify Real Estate's fundamental investment
objective so that it does not identify capital appreciation as "primary" and
income as "secondary" objectives. If approved, Real Estate's new investment
objective will be to seek both capital appreciation and production of income
while not emphasizing one over the other. Whether or not the proposal is
approved, it is anticipated that Real Estate will continue its subadvisory
relationship with J.P. Morgan Investment Management, Inc. (the "Subadvisor").
The Subadvisor does not expect that the change in the Real Estate's fundamental
investment objective will (1) materially affect its investment strategy for the
day-to-day management of the Fund; or (2) materially change the risk factors
applicable to the Fund.
INVESTMENT STRATEGY
Real Estate invests at least 80% of its assets in equity securities issued
by real estate investment trusts ("REITs") and companies engaged in the real
estate industry. A REIT invests primarily in income-producing real estate or
makes loans to persons involved in the real estate industry. Equity securities
include common stock, preferred stock, and equity equivalent securities such as
convertible securities, stock futures contracts or stock index futures
contracts. A company is considered to be a real estate company if, in the
opinion of the Fund's portfolio managers (the "PMs"), at least 50% of its
revenues or 50% of the market value of its assets at the time its securities are
purchased by the Fund are attributed to the ownership, construction, management
or sale of real estate. The PMs look for real estate securities that they
believe will provide superior returns. The PMs attempt to focus the Fund's
investments on real estate companies and REITs with the potential for stock
price appreciation, plus strong growth of cash flow to investors.
Some REITs, called equity REITs, buy real estate, and investors receive
income from the rents received and from any profits on the sale of its
properties. Other REITs, called mortgage REITs, lend money to building
developers and other real estate companies, and receive income from interest
paid on those loans. There are also hybrid REITs, which engage in both owning
real estate and making loans. If a REIT meets certain requirements, it is not
taxed on the income it distributes to its investors.
The PMs' real estate securities investment philosophy is that consistently
excellent investment results can be achieved through superior stock selection
(based on both public equity and private real estate market factors) and
risk-managed portfolio construction. The PMs use a disciplined investment
process to manage the Fund, focusing on stock selection rather than sector or
theme bets. The portfolio management process relies on a continuous screen of
the target universe of investments to identify companies exhibiting financial
strength, and operating returns and growth prospects that are attractively
priced at any given time. This process also helps the PMs sell the stocks of
companies whose fundamentals are no longer attractively priced.
The PMs evaluate each company's ability to generate earnings over an
earnings cycle, not just for the next one or two years. The PMs focus research
efforts on determining the normalized earnings and earnings growth of a company,
from which they determine if the company's current price fully reflects its
long-term value.
PRINCIPAL RISKS
An investment in the Fund may be subject to many of the same risks as a
direct investment in real estate. This is due to the fact that the value of the
Fund's investments may be affected by the value of the real estate owned by the
companies in which it invests. These risks include changes in economic
conditions, interest rates, property values, property tax increases,
overbuilding and increased competition, environmental contamination, zoning and
natural disasters.
Because the Fund concentrates its investments in real estate securities, it
may be subject to greater risks and market fluctuations than a fund representing
a broader range of industries. In addition, market performance tends to be
cyclical and, in the various cycles, certain investment styles may fall in and
out of favor. If the market is not favoring the Fund's style, its gains may not
be as big as, or its losses may be bigger than, other equity funds using
different investment styles.
To the extent the Fund invests in mortgage REITs, it will be subject to
credit risk and interest rate risk with respect to the loans made by the REITs
in which it invests. Credit risk is the risk that the borrower will not be able
to make interest and principal payments on the loan to the REIT when they are
due. Interest rate risk is the risk that a change in the prevailing interest
rate will cause the value of the loan portfolio held by the REIT to rise or
fall. Generally, when interest rates rise, the value of the loan portfolio will
decline. The opposite is true when interest rates decline. The degree to which
interest rate changes affect the Fund's performance varies and is related to the
specific characteristics of the loan portfolios of the mortgage REITs in which
the Fund invests.
The Fund is classified as nondiversified. Because it is nondiversified, it
may hold large positions in a small number of securities. To the extent it
maintains such positions, the price change in any one of those securities may
have a greater impact on the Fund's share price than if it were diversified.
Although the PMs intend to invest the Fund's assets primarily in U.S.
securities, the Fund may invest in foreign securities. Foreign investment
involves additional risks, including fluctuations in currency exchange rates,
less stable political and economic structures, reduced availability of public
information, and lack of uniform financial reporting and regulatory practices
similar to those that apply in the United States. These factors make investing
in foreign securities generally riskier than investing in U.S. securities.
The value of the Fund's shares depends on the value of the stocks and other
securities it owns. The value of the individual securities the Fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions and investor confidence.
At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the Fund.
REASONS FOR THE PROPOSED CHANGE
As of December 31, 2006, approximately 91.4% of the Fund's investments was
invested in REITs. The structure of REITs requires that a REIT distribute
substantially all its taxable income to shareholders in order to retain REIT
status. Because of these distributions, REITs must frequently revisit the
capital markets seeking the cash needed to fund their capital growth. REIT
investments have generally been viewed as income generating investments, because
of their inability to grow capital internally.
However, over the past few years, the real estate market has experienced a
high level of capital growth. As a result, Real Estate has experienced a
similarly high level of appreciation of the assets in its portfolio, including
its REIT investments. During this time period, much of the gains recorded by the
Fund have been a result of capital appreciation of portfolio assets (including
REITs) as opposed to income generated from REIT or other investments.
However, it is not possible to predict with any certainty how long this
trend will continue. In the event that the real estate market does not continue
to appreciate at its current rate, or begins to depreciate, it may negatively
impact the Fund if it continues to emphasize capital appreciation over the
production of current income. The new investment objective, if approved, would
permit the Fund's PMs to seek a total return through the appropriate combination
of capital appreciation and current income, as dictated by then-existing market
conditions. The Fund's Advisor, Subadvisor and Directors believe that this
approach is more flexible and is a better reflection of the type of return an
investor in a real estate mutual fund should expect, given the income producing
nature of REITs in which the Fund primarily invests.
SHAREHOLDER APPROVAL
Proposal 3, the approval of the modified Real Estate investment objective,
must be approved in accordance with Section 13(a)(3) of the 1940 Act, which
requires the approval of the lesser of (i) more than 50% of the outstanding
shares of the Fund or (ii) 67% or more of the shares of the Fund present or
represented by proxy at the Meeting if more than 50% of such shares are present
or represented by proxy.
THE DIRECTORS OF AMERICAN CENTURY CAPITAL PORTFOLIOS, INC. RECOMMEND
THAT THE SHAREHOLDERS OF THE REAL ESTATE FUND
VOTE TO APPROVE THE AMENDMENT TO THE INVESTMENT OBJECTIVE
PROPOSAL 4
APPROVAL OF A NEW SUBADVISORY AGREEMENT FOR EQUITY INDEX
OVERVIEW AND RELATED INFORMATION
The current subadvisor for Equity Index, Barclay's Global Fund Advisors
("Barclays"), recently informed the Advisor that in light of Barclays' current
business model, Barclays is not interested in continuing to provide subadvisory
services to Equity Index. Barclays currently serves as subadvisor to Equity
Index pursuant to a subadvisory contract between Barclays and the Advisor dated
May 1, 2001 (the "Old Subadvisory Agreement").
Upon notification by Barclays of its decision to discontinue providing
subadvisory services to Equity Index, the Advisor formed a committee (the
"Committee") to solicit bids for a replacement subadvisor to Equity Index. The
Committee issued a formal Request for Proposal to four potential subadvisors,
including Northern Trust Investments, N.A. ("Northern Trust"). After receiving
responses from the four subadvisors, the Committee invited Northern Trust and
one other finalist to make in-person presentations. The Advisor also submitted
subadvisory contract proposals to the two finalists. After careful
consideration, the Board voted to approve, and recommends to Shareholders, the
new subadvisory agreement ("New Subadvisory Agreement") between Northern Trust
and the Advisor.
INFORMATION REGARDING THE CURRENT SUBADVISOR AND THE PROPOSED SUBADVISOR
Barclays, located at 45 Fremont St., San Francisco, California 94105, is
wholly owned by Barclays Global Investors, N.A. Barclays Global Investors, N.A.
is a majority owned subsidiary of Barclays Bank PLC. The following table lists
the names, positions, and principal occupations of the Barclays directors and
principal executive officers:
- ------------------ ---------------------------- ---------------------------------------
NAME POSITION WITH BARCLAYS PRINCIPAL OCCUPATION
- ------------------ ---------------------------- ---------------------------------------
Blake R. Grossman Chairman and Chief Executive Chairman of the Board, Chief Executive
Officer Officer - Barclays Global Fund Advisors
- ------------------ ---------------------------- ---------------------------------------
Rohit Bhagat Director
- ------------------ ---------------------------- ---------------------------------------
Lee Kranefuss Director
- ------------------ ---------------------------- ---------------------------------------
The address of the Barclays directors and principal executive officer is 45
Fremont St., San Francisco, California 94105.
Northern Trust is a wholly-owned subsidiary of The Northern Trust Company,
an Illinois state chartered bank. The Northern Trust Company, in turn, is a
wholly-owned subsidiary of Northern Trust Corporation, a multi-bank holding
company that delivers trust, investment and banking services to individuals,
corporations and institutions. Northern Trust Corporation is a public company
headquartered in the United States at 50 South LaSalle Street, Chicago, Illinois
60603 and trades on the NASDAQ under the ticker symbol NTRS. Northern Trust
Corporation is the ultimate parent of Northern Trust. As of September 30, 2006,
Northern Trust employees, retirees and directors beneficially owned
approximately 17% of the Corporation's common stock.
The following table lists the names, positions, and principal occupations
of the Northern Trust directors and principal executive officers:
- -------------------------- -------------------------------- -------------------------------------------
NAME AND ADDRESS POSITION WITH NORTHERN TRUST PRINCIPAL OCCUPATION
- -------------------------- -------------------------------- -------------------------------------------
Orie L. Dudley, Jr. Executive Vice President & Chief Chief Investment Officer - oversees
Investment Officer, Northern Portfolio Management Activities.
Trust Corporation
- -------------------------- -------------------------------- -------------------------------------------
Mark Gossett, CFA Senior Vice President, The Chief Operating Officer for Northern Trust
Northern Trust Company Global Investments
- -------------------------- -------------------------------- -------------------------------------------
William Huffman, Jr., CPA Chairman, President & CEO, Chairman, President & CEO, Northern Trust
Northern Trust Global Advisors Global Advisors
- -------------------------- -------------------------------- -------------------------------------------
Lyle Logan Executive Vice President, The Managing Director, Institutional Sales and
Northern Trust Company Client Servicing for Northern Trust Global
Investments
- -------------------------- -------------------------------- -------------------------------------------
Duane Rocheleau Senior Vice President, The Senior Vice President and Managing Director
Northern Trust Company with Northern Trust Global Investments
- -------------------------- -------------------------------- -------------------------------------------
Terence J. Toth Executive Vice President, President of Northern Trust Global
Northern Trust Corporation Investments
- -------------------------- -------------------------------- -------------------------------------------
Mark Van Grinsven Senior Vice President, The Head, Global Securities Lending
Northern Trust Company
- -------------------------- -------------------------------- -------------------------------------------
Michael A. Vardas, CFA Chairman, President & CEO, Chairman, President & CEO, Northern Trust
Northern Trust Global Advisors Quantitative Management
- -------------------------- -------------------------------- -------------------------------------------
Lloyd A. Wennlund Executive Vice President, The President, Northern Trust Securities, Inc.,
Northern Trust Company President, Northern Funds and Northern
Institutional Funds.
Head of Product Management, Northern Trust
Global Investments
- -------------------------- -------------------------------- -------------------------------------------
The address of the Northern Trust directors and principal executive officers is
50 South LaSalle St., Chicago, IL 60675.
COMPARISON OF THE CURRENT SUBADVISORY AGREEMENT AND THE NEW SUBADVISORY
AGREEMENT
The Directors of American Century Capital Portfolios, Inc. approved the New
Subadvisory Agreement at a meeting held on November 29, 2006. The terms of the
New Subadvisory Agreement are generally similar to those found in the Old
Subadvisory Agreement. If approved, the New Subadvisory Agreement will continue
in effect so long as such continuance is approved at least annually by the Board
or by a vote of a majority of Equity Index's outstanding voting shares, provided
that in either event the continuance is approved by a majority of the Board who
are not "interested persons," as that term is defined in the 1940 Act, of any
party to the New Subadvisory Agreement. For a complete understanding of the New
Subadvisory Agreement, please refer to the form of New Subadvisory Agreement
provided in Exhibit D. The following paragraphs briefly discuss some important
provisions contained in the New Subadvisory Agreement.
ADVISORY SERVICES
The services provided by Northern Trust to Equity Index under the New
Subadvisory Agreement will be substantially similar to those previously provided
by Barclays under the Old Subadvisory Agreement. Both agreements provide that
the subadvisor will: (i) make investment decisions for the Equity Index fund in
accordance with its investment objective and policies as stated in its
prospectus and statement of additional information and with such written
guidelines as the Advisor may provide to the subadvisor; (ii) place purchase and
sale orders on behalf of Equity Index; (iii) maintain books and records with
respect to the securities transactions of Equity Index; and (iv) furnish the
Board such regular and special reports with respect to the fund as the Board may
reasonably request. The subadvisor will also supervise the fund's investments
and conduct a continual program of investment, evaluation and if appropriate,
sale and reinvestment of the fund's assets.
EXPENSES
The provisions of the New Subadvisory Agreement regarding expenses are
substantially similar to those of the Old Subadvisory Agreement. Under both
agreements, the subadvisor agrees to pay its organizational, operational and
business expenses but is not obligated to pay any expenses of the Advisor or
Equity Index such as brokerage fees, commissions in connection with the
execution of securities transactions, taxes, interest and custodian fees and
expenses.
COMPENSATION
The fees to be paid to Northern Trust under the New Subadvisory Agreement
are slightly lower than the fees paid to Barclays under the Old Subadvisory
Agreement. Northern Trust will receive a fee equal to two basis points (0.02%)
on the first $500,000,000 of assets in the fund, and one basis point (0.01%) on
all amounts in excess of $500,000,000 under the New Subadvisory Agreement.
Barclays receives a fee equal to five basis points (0.05%) on the first
$200,000,000 of assets in the fund, two basis points (0.02%) on the next
$300,000,000 and one basis point (0.01%) on any amount in excess of $500,000,000
under the Old Subadvisory Agreement. The fees will continue to be paid by the
Advisor out of the management fee it receives from Equity Index. Under the terms
of the New Subadvisory Agreement, the Advisor will pay Northern Trust a
management fee payable monthly in arrears on the first business day of each
month.
LIABILITY OF NORTHERN TRUST
The New Subadvisory Agreement provides that Northern Trust will not be
liable to the Equity Index fund for any loss due solely to a mistake of
investment judgment. However, Northern Trust will be liable for any loss which
is incurred by reason of an act or omission of its employee, partner, director
or affiliate, if such act or omission involves a willful misfeasance, bad faith
or gross negligence, or breach of its duties or obligations whether such duties
are express or implied.
ADDITIONAL INFORMATION ABOUT NORTHERN TRUST
In addition to serving as the investment subadvisor to the Equity Index
fund, Northern Trust also serves as subadvisor to the following mutual funds
having similar investment objectives to the Equity Index fund:
- -------------------------------------- -------------------------- --------------------------------------
Fund Name Assets Under Management Northern Trust's Rate of Compensation
- -------------------------------------- -------------------------- --------------------------------------
DWS S&P 500 Index Fund $2,616 million First $2 Billion, 2 basis points
(0.02%); next $1.5 Billion, 1 basis
point (0.01%); balance, 0.5 basis
point (0.005%)
- -------------------------------------- -------------------------- --------------------------------------
Guidestone Equity Index Fund $561 million at 12/13/06 First $100 million, 4 basis points
(0.04%); next $250 million, 2 basis
points (0.02%); balance, 0.5 basis
point (0.005%)
- -------------------------------------- -------------------------- --------------------------------------
MassMutual Select Indexed Equity Fund $2,259 million at 12/13/06 First $1 Billion, 1 basis point
(0.01%); balance, 0.75 basis points
(0.0075%)
- -------------------------------------- -------------------------- --------------------------------------
RSI Retirement Trust Core Equity Fund $59 million at 12/31/06 First $25 million, 16 basis points
(0.16%); next $25 million, 10 basis
points (0.10%); next $50 million, 6
basis points (0.06%); balance, 4
basis points (0.04%)
- -------------------------------------- -------------------------- --------------------------------------
USAA S&P 500 Index Fund $3,200 million at 12/31/06 First $1.5 Billion, 2 basis points
(0.02%); next $1.5 Billion, 1 basis
point (0.01%); balance, 0.5 basis
point (0.005%)
- -------------------------------------- -------------------------- --------------------------------------
In connection with providing investment subadvisory services to the funds
listed above, Northern Trust has not waived or reduced its fees below the
amounts specified in Northern Trust's investment subadvisory contracts with
these parties.
BASIS FOR THE BOARD'S APPROVAL OF THE NEW SUBADVISORY AGREEMENT
The Committee's Request for Proposal contained 52 questions on key topics
including: firm experience in "indexing," portfolio manager experience,
portfolio analyst experience, research and trading practices, investment
process, portfolio construction, portfolio risk management, portfolio managers'
compensation and operational controls which included such issues as daily
valuation, cash management, and investment accounting systems and processes.
After receiving high-quality responses from each of the four potential
subadvisors, the Committee invited Northern Trust and one other finalist to give
presentations to the American Century selection committee in Kansas City.
Based on a variety of criteria, it was determined that Northern Trust was
better suited for the subadvisory role. Such criteria included: a strong track
record of performance in both historical tracking error and raw performance
numbers compared to the S&P 500, the breadth of experience in index fund
management, sizable subadvisory relationships with companies subject to the 1940
Act, a commitment to index business evidenced by a lack of forays into the
Exchange Traded Funds business, a thorough vetting of their investment process
and extremely positive reference calls with other mutual fund companies for whom
Northern Trust currently serves as subadvisor.
The Advisor submitted subadvisory contract proposals to Northern Trust and
one other finalist. Northern Trust presented fewer concerns with respect to
their commitment by agreeing to comply American Century's stringent requirements
for trading practices and soft dollar arrangements. The Advisor believes there
will be no diminution in the scope and quality of the services provided between
Northern Trust and Barclays.
The Board also compared the services to be rendered and amounts to be paid
under the New Subadvisory Agreement to those under other potential subadvisory
contracts. The Board determined that the fees charged by Northern Trust were
competitive and approved the New Subadvisor Agreement based in part upon
Northern Trust's excellent references and strong track record of performance in
advising similar funds.
SHAREHOLDER APPROVAL
Proposal 4, the approval of the New Subadvisory Agreement, must be approved
in accordance with Section 15(a) of the 1940 Act, which requires the approval of
the lesser of (i) more than 50% of the outstanding shares of the Fund or (ii)
67% or more of the shares of the Fund present or represented by proxy at the
Meeting if more than 50% of such shares are present or represented by proxy.
THE DIRECTORS OF AMERICAN CENTURY CAPITAL PORTFOLIOS, INC.
RECOMMEND THAT THE SHAREHOLDERS OF THE EQUITY INDEX FUND VOTE TO
APPROVE THE NEW SUBADVISORY AGREEMENT
OTHER INFORMATION
MEETINGS OF SHAREHOLDERS
The Funds are not required to hold annual shareholder meetings, unless
required to do so in order to elect directors and for such other purposes as may
be prescribed by law or the Funds' Articles of Incorporation. Special meetings
of the shareholders may be called by the Directors for the purpose of taking
action upon any other matter deemed by the Directors to be necessary or
desirable. A meeting of the shareholders may be held at any place designated by
the Directors. Written notice of any meeting is required to be given by the
Directors.
This Proxy Statement is being furnished in connection with the solicitation
of proxies by the Boards. Proxies may be solicited by officers of the Funds, as
well as their affiliates, employees and agents. In addition, financial
intermediaries may solicit the proxy of the beneficial owners of the shares. It
is anticipated that the solicitation of proxies will be primarily by mail,
internet, telephone, facsimile or personal interview. Shareholders who
communicate proxies by telephone or by other electronic means have the same
power and authority to issue, revoke or otherwise change their voting
instructions as shareholders submitting proxies in written form. Telephonic
solicitations will follow procedures designed to ensure accuracy and prevent
fraud. The Advisor or an affiliate thereof may reimburse banks, brokers and
others for their reasonable expenses in forwarding proxy solicitation materials
to beneficial owners of Fund shares, and may reimburse certain officers or
employees that it may employ for their reasonable expenses in assisting in the
solicitation of proxies from such beneficial owners. The expenses associated
with the Proposals of this Proxy Statement will be paid by American Century.
Such expenses include: (a) expenses associated with the preparation and filing
of this Proxy Statement; (b) postage; (c) printing; (d) accounting fees; (e)
legal fees incurred in the preparation of the Proxy Statement; (f) solicitation
costs; and (g) other related administrative or operational costs. Such expenses
are currently estimated to be approximately $5.6 million in the aggregate.
DATE, TIME AND PLACE OF MEETING
The Meeting will be held on June 27, 2007 at the principal executive
offices of American Century, 4500 Main Street, Kansas City, Missouri 64111, at
10:00 a.m., Central Time.
USE AND REVOCATION OF PROXIES
A shareholder executing and returning a proxy has the power to revoke it at
any time prior to its exercise by executing a superseding proxy (i.e., a
later-dated and signed proxy), by submitting a notice of revocation to the
Secretary of the Funds or by subsequently registering his or her vote by
telephone or over the Internet. In addition, although mere attendance at the
Meeting will not revoke a proxy, a shareholder present at the Meeting may
withdraw his or her proxy and vote in person. All shares represented by properly
executed proxies received at or prior to the Meeting, unless such proxies
previously have been revoked, will be voted at the Meeting in accordance with
the directions on the proxies. It is not anticipated that any matters other than
the approval of the Proposals will be brought before the Meeting. If, however,
any other business properly is brought before the Meeting, proxies will be voted
in accordance with the judgment of the persons designated on such proxies.
VOTING RIGHTS AND REQUIRED VOTES
A quorum of shareholders is necessary to hold a valid meeting. Shareholders
entitled to vote one-third of the issued and outstanding shares of each Issuer,
Fund or Class must be present in person or by proxy, to constitute a quorum for
purposes of voting on proposals relating to that Issuer, Fund or Class, except
American Century Mutual Funds, Inc. and American Century Variable Portfolios,
Inc. for which a majority of the eligible votes shall constitute a quorum. Each
shareholder is entitled to one vote per dollar of NAV represented by their
shares, with fractional dollars voting proportionally. Shareholders of each
Issuer vote separately on Proposal 1 (Election of Directors). Holders of Advisor
Class shares of the Advisor Funds vote separately on Proposal 2 (Change in
Advisor Class Fee Structure). Only shareholders of the Real Estate fund vote on
Proposal 3 (Change in Investment Objective of the Real Estate fund) and only
shareholders of the Equity Index fund vote on Proposal 4 (Subadvisory Agreement
with Northern Trust). Approval of Proposal 1 requires the approval of a
plurality of the votes cast in person or by proxy at the Meeting at which a
quorum exists. Approval of Proposals 2, 3, and 4 requires the approval of the
lesser of (i) more than 50% of the outstanding shares of the applicable fund or
class or (ii) 67% or more of the shares of that fund or class present or
represented by proxy at the Meeting if more than 50% of such shares are present
or represented by proxy. Broker-dealer firms holding shares of any of the Funds
in "street name" for the benefit of their customers and clients will request the
instructions of such customers and clients on how to vote their shares before
the Meeting. Each Issuer, Fund, or Class will include shares held of record by
broker-dealers as to which such authority has been granted in its tabulation of
the total number of shares present for purposes of determining whether the
necessary quorum of shareholder exists. Properly executed proxies that are
returned but that are marked "abstain" or with respect to which a broker-dealer
has declined to vote on any proposal ("broker non-votes") will be treated as
shares that are present but which have not been voted. For this reason,
abstentions and broker non-votes will have the effect of a "no" vote for
purposes of obtaining the requisite approval of the proposals. In the event that
a quorum is not present or in the event that a quorum is present but sufficient
votes in favor of a Proposal have not been received, the persons named as
proxies may propose one or more adjournments of the Meeting to permit further
solicitation of proxies as to any Proposal. Any adjournment of the Meeting for
the further solicitation of proxies for a Proposal will require the affirmative
vote of a majority of the total number of shares entitled to vote on the
Proposal that are present in person or by proxy at the Meeting to be adjourned.
If the Meeting is adjourned for more than ninety days, then the Funds are
required to send a new notice to shareholders.
OUTSTANDING SHARES AND SIGNIFICANT SHAREHOLDERS
Only holders of record of shares of the Issuers at the close of business on
April 13, 2007 (the "Record Date") are entitled to vote on Proposal 1 at the
Meeting or any adjournment thereof. The following chart sets forth the number of
shares of each Issuer issued and outstanding and the number of votes entitled to
vote as of the close of business on _____.
- ------------------ ----------------- --------------------- ---------------------
ISSUER SHARE CLASS OUTSTANDING SHARES NUMBER OF VOTES
ENTITLED TO VOTE
($1 EQUALS 1 VOTE)
- ------------------ ----------------- --------------------- ---------------------
Only holders of record of shares of the Advisor Class of the Advisor Funds at
the close of business on April 13, 2007 (the "Record Date") are entitled to vote
on Proposal 2 at the Meeting or any adjournment thereof. The following chart
sets forth the number of shares of each Advisor Class of the Advisor Funds
issued and outstanding and the number of votes entitled to vote as of the close
of business on _____.
- ------------------ ----------------- --------------------- ---------------------
FUND NAME SHARE CLASS OUTSTANDING SHARES NUMBER OF VOTES
ENTITLED TO VOTE
($1 EQUALS 1 VOTE)
- ------------------ ----------------- --------------------- ---------------------
Only holders of record of shares of Real Estate at the close of business on
April 13, 2007 (the "Record Date") are entitled to vote on Proposal 3 at the
Meeting or any adjournment thereof. The following chart sets forth the number of
shares of Real Estate issued and outstanding and the number of votes entitled to
vote as of the close of business on _____.
- ------------------ ----------------- --------------------- ---------------------
FUND NAME SHARE CLASS OUTSTANDING SHARES NUMBER OF VOTES
ENTITLED TO VOTE
($1 EQUALS 1 VOTE)
- ------------------ ----------------- --------------------- ---------------------
Only holders of record of shares of Equity Index at the close of business on
April 13, 2007 (the "Record Date") are entitled to vote on Proposal 4 at the
Meeting or any adjournment thereof. The following chart sets forth the number of
shares of Equity Index issued and outstanding and the number of votes entitled
to vote as of the close of business on _____.
- ------------------ ----------------- --------------------- ---------------------
FUND NAME SHARE CLASS OUTSTANDING SHARES NUMBER OF VOTES
ENTITLED TO VOTE
($1 EQUALS 1 VOTE)
- ------------------ ----------------- --------------------- ---------------------
Exhibit B to this Proxy Statement lists for each Issuer, Fund or Class as
applicable, the holders as of March 15, 2007, of more than 5% of the shares of
any Issuer, Fund or Class as applicable.
OTHER SERVICE PROVIDERS
American Century Services, LLC, 4500 Main Street, Kansas City, Missouri
64111, an affiliate of the Advisor, serves as transfer agent of the American
Century Funds. American Century Investment Services, Inc., 4500 Main Street,
Kansas City, Missouri 64111, an affiliate of the Advisor, serves as distributor
to the American Century Funds.
WHERE TO FIND ADDITIONAL INFORMATION
The Issuers are subject to the informational requirements of the Securities
Act of 1933, the Securities Exchange Act of 1934, and the 1940 Act, and in
accordance therewith file reports and other information with the SEC. Reports,
proxy and information statements, and other information filed by the Issuers, on
behalf of the Funds, can be obtained by calling or writing the Funds and can
also be inspected and copied by the public at the public reference facilities
maintained by the SEC in Washington, DC located at Room 1580, 100 F Street,
N.E., Washington DC 20549. Copies of such material can be obtained at prescribed
rates from the Public Reference Branch, Office of Consumer Affairs and
Information Services, SEC, Washington DC 20549, or obtained electronically from
the EDGAR database on the SEC's website (www.sec.gov).
OTHER MATTERS AND DISCRETION OF ATTORNEYS NAMED IN THE PROXY
The Issuers are not required, and do not intend, to hold regular annual
meetings of shareholders. Shareholders wishing to submit proposals for
consideration for inclusion in a Proxy Statement for the next meeting of
shareholders should send their written proposals to Corporate Secretary,
American Century Funds, P.O. Box 410141, Kansas City, Missouri, 64141, or by
e-mail to corporatesecretary@americancentury.com so that they are received
within a reasonable time before any such meeting.
No business other than the matters described above is expected to come
before the Meeting, but should any other matter requiring a vote of shareholders
arise, including any question as to an adjournment or postponement of the
Meeting, the persons named on the enclosed proxy card(s) will vote on such
matters according to their best judgment in the interests of the Issuers.
- --------------------------------------------------------------------------------
SHAREHOLDERS ARE REQUESTED TO COMPLETE, DATE AND SIGN THE ENCLOSED
PROXY CARD(S) AND RETURN IT IN THE ENCLOSED ENVELOPE,
WHICH NEEDS NO POSTAGE IF MAILED IN THE UNITED STATES.
- --------------------------------------------------------------------------------
EXHIBIT A
EQUITY OWNERSHIP OF NOMINEES
- ------------------------- --------------------------------------------------------- -------------------------
NAME OF DIRECTOR FUND NAME/(DOLLAR RANGE OF EQUITY AGGREGATE DOLLAR RANGE OF
SECURITIES IN THE FUND)* EQUITY SECURITIES IN ALL
REGISTERED INVESTMENT
COMPANIES OVERSEEN BY
DIRECTOR IN FAMILY OF
INVESTMENT COMPANIES
- -------------------------------------------------------------------------------------------------------------
INTERESTED NOMINEES
- ------------------------- --------------------------------------------------------- -------------------------
James E. Stowers Jr. AMERICAN CENTURY MUTUAL FUNDS, INC.
Vista ($50,001-$100,000) ($50,001-$100,000)
- ------------------------- --------------------------------------------------------- -------------------------
Jonathan S. Thomas AMERICAN CENTURY ASSET ALLOCATION PORTFOLIOS, INC. More than $100,000
LIVESTRONG 2045 ($50,001-$100,000)
AMERICAN CENTURY CAPITAL PORTFOLIOS, INC.
Real Estate ($1-$10,000)
AMERICAN CENTURY STRATEGIC ASSET ALLOCATIONS, INC.
Newton ($50,001-$100,000)
AMERICAN CENTURY WORLD MUTUAL FUNDS, INC.
Emerging Markets ($1-$10,000)
International Discovery ($1-$10,000)
Life Sciences ($1-$10,000)
- -------------------------------------------------------------------------------------------------------------
INDEPENDENT DIRECTORS
- ------------------------- --------------------------------------------------------- -------------------------
Thomas A. Brown AMERICAN CENTURY CAPITAL PORTFOLIOS, INC. More than $100,000
Equity Income ($10,001-$50,000)
Equity Index ($10,001-$50,000)
Large Company Value ($1-10,000)
Mid Cap Value ($10,001-$50,000)
Real Estate ($10,001-$50,000)
Small Cap Value($10,001-$50,000)
Value ($50,001-$100,000)
AMERICAN CENTURY MUTUAL FUNDS, INC.
Balanced ($10,001-$50,000)
Capital Value ($1-$10,000)
Focused Growth ($1-$10,000)
Growth ($10,001-$50,000)
Heritage ($1-$10,000)
New Opportunities ($10,001-$50,000)
Select ($10,001-$50,000)
Ultra ($10,001-$50,000)
Veedot ($10,001-$50,000)
Vista ($10,001-$50,000)
AMERICAN CENTURY WORLD MUTUAL FUNDS, INC.
Emerging Markets ($10,001-$50,000)
Global Growth ($10,001-$50,000)
International Discovery ($10,001-$50,000)
International Growth ($10,001-$50,000)
International Stock ($1-10,000)
Life Sciences ($1-10,000)
Technology ($1-10,000)
AMERICAN CENTURY STRATEGIC ASSET ALLOCATION, INC.
Strategic Allocation: Conservative (More than $100,000)
Strategic Allocation: Moderate ($1-$10,000)
Strategic Allocation: Aggressive ($10,001-$50,000)
AMERICAN CENTURY GROWTH FUNDS, INC.
Legacy Focused Large Cap ($1-$10,000)
Legacy Large Cap Growth ($1-$10,000)
Legacy Multi-Cap Growth ($1-$10,000)
- ------------------------- --------------------------------------------------------- -------------------------
Andrea C. Hall AMERICAN CENTURY CAPITAL PORTFOLIOS, INC. More than $100,000
Equity Income (More than $100,000)
Value ($10,001-$50,000)
AMERICAN CENTURY MUTUAL FUNDS, INC.
Balanced ($10,001-$50,000)
New Opportunities ($10,001-$50,000)
Vista (More than $100,000)
AMERICAN CENTURY WORLD MUTUAL FUNDS, INC.
International Discovery ($10,001-$50,000)
International Growth ($50,001-$100,000)
- ------------------------- --------------------------------------------------------- -------------------------
James A. Olson AMERICAN CENTURY MUTUAL FUNDS, INC. $50,001-$100,000
Vista ($10,001-$50,000)
AMERICAN CENTURY WORLD MUTUAL FUNDS, INC.
International Growth ($10,001-$50,000)
- ------------------------- --------------------------------------------------------- -------------------------
Donald H. Pratt AMERICAN CENTURY CAPITAL PORTFOLIOS, INC. More than $100,000
Real Estate (More than $100,000)
Value ($50,001-$100,000)
AMERICAN CENTURY MUTUAL FUNDS, INC.
Heritage ($10,001-$50,000)
New Opportunities ($10,001-$50,000)
Veedot ($10,001-$50,000)
AMERICAN CENTURY WORLD MUTUAL FUNDS, INC.
Emerging Markets ($10,001-$50,000)
International Discovery ($10,001-$50,000)
Technology ($10,001-$50,000)
- ------------------------- --------------------------------------------------------- -------------------------
Gale E. Sayers AMERICAN CENTURY MUTUAL FUNDS, INC. More than $100,000
Balanced ($10,001-$50,000)
Select (More than $100,000)
- ------------------------- --------------------------------------------------------- -------------------------
M. Jeannine Strandjord AMERICAN CENTURY CAPITAL PORTFOLIOS, INC. More than $100,000
Real Estate ($50,001-$100,000)
Value (More than $100,000)
AMERICAN CENTURY MUTUAL FUNDS, INC.
Giftrust ($1-$10,000)
AMERICAN CENTURY WORLD MUTUAL FUNDS, INC.
Emerging Markets ($50,001-100,000)
International Discovery (More than $100,000)
- ------------------------- --------------------------------------------------------- -------------------------
Timothy S. Webster AMERICAN CENTURY CAPITAL PORTFOLIOS, INC. More than $100,000
Equity Income ($10,001-$50,000)
Mid Cap Value ($10,001-$50,000)
Small Cap Value ($10,001-$50,000)
AMERICAN CENTURY GROWTH FUNDS, INC.
Legacy Focused Large Cap ($10,001-$50,000)
Legacy Large Cap Growth ($1-$10,000)
Legacy Multi-Cap Growth ($10,001-$50,000)
AMERICAN CENTURY MUTUAL FUNDS, INC.
Capital Value ($10,001-$50,000)
Heritage ($10,001-$50,000)
New Opportunities ($10,001-$50,000)
Ultra ($50,001-$100,000)
Veedot (More than $100,000)
Vista ($50,001-$100,000)
AMERICAN CENTURY STRATEGIC ASSET ALLOCATIONS, INC.
Newton ($10,001-$50,000)
AMERICAN CENTURY WORLD MUTUAL FUNDS, INC.
Emerging Markets ($50,001-$100,000)
Global Growth ($10,001-$50,000)
International Discovery (More than $100,000)
- ------------------------- --------------------------------------------------------- -------------------------
*NOTE - FUNDS NOT LISTED ARE FUNDS IN WHICH NO SECURITIES ARE OWNED BY THE
NOMINEES.
EXHIBIT B
SIGNIFICANT SHAREHOLDERS
AMERICAN CENTURY ASSET ALLOCATION PORTFOLIOS, INC.
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
LIVESTRONG Income Portfolio
- --------------------------------------------------------------------------------
Investor Class
The Chase Manhattan
Bank NA TR
Hitachi Employee 401K
Ret Plan Trust
New York, New York
- --------------------------------------------------------------------------------
Institutional Class
JPMorgan Chase Bank Trustee
Taylor Companies 401K
and Profit Sharing Plans
Kansas City, Missouri
Trustees of Hapag-Lloyd
America Inc
Svgs Inv Plan & Trust
Piscataway, New Jersey
JPMorgan Chase Bank Trustee
FBO United Business
Media 401K Plan
Kansas City, Missouri
Trustees of American
Century P/S & 401K
Savings Plan & Trust
Kansas City, Missouri
- --------------------------------------------------------------------------------
R Class
Luke Scamardo, II, MD, C.H.
Prihoda, Jr, MD,
Pollachi Selvakumarraj, MD
FBO Navasota Medical
Center 401K Plan
Navasota, Texas
MG Trust Company as Agent for
Frontier Trust Co
as TR Waldorf Tire
Center Inc 401K Pl
Fargo, North Dakota
American Century Investment
Management, Inc.
Kansas City, Missouri
MG Trust Company TR
Nova Steel Processing Inc.
Retirement
Denver, Colorado
- --------------------------------------------------------------------------------
Advisor Class
Ohio National Life Insurance Co.
For Benefit of
Separate Accounts
Cincinnati, Ohio
James B. Anderson TR
American Chamber of
Commerce Execut &
Restated 401K Plan & Trust
Springfield, Missouri
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
LIVESTRONG 2015 Portfolio
- --------------------------------------------------------------------------------
Investor Class
The Chase Manhattan
Bank NA TR
Hitachi Employee 401K
Ret Plan Trust
New York, New York
- --------------------------------------------------------------------------------
Institutional Class
JPMorgan Chase Bank Trustee
FBO United Business
Media 401K Plan
Kansas City, Missouri
JPMorgan Chase Bank Trustee
Taylor Companies 401K
and Profit Sharing Plans
Kansas City, Missouri
Trustees of American Century P/S
& 401K Savings Plan & Trust
Kansas City, Missouri
- --------------------------------------------------------------------------------
R Class
MG Trust Company as Agent
for Frontier Trust Co
as TR Claymore C Sieck 401K
Fargo, North Dakota
MG Trust Company TR
Benesys Inc 401K
Profit Sharing
Denver, Colorado
MG Trust Company Cust FBO
Medical Diagonostic
Laboratory Inc.
Denver, Colorado
MG Trust Company TR
Trachte Channelframe
Buildings 401
Denver, Colorado
MG Trust Company Cust
FBO Cabinet Components
& Distribution
Denver, Colorado
- --------------------------------------------------------------------------------
Advisor Class
Ohio National Life Insurance Co.
For Benefit of
Separate Accounts
Cincinnati, Ohio
Amvescap Natl Trust Co
as Agent for FBO
Standard Process Inc.
PS & Pension Plan
Atlanta, Georgia
James B. Anderson TR
American Chamber of
Commerce Execut &
Restated 401K Plan & Trust
Springfield, Missouri
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
LIVESTRONG 2025 Portfolio
- --------------------------------------------------------------------------------
Investor Class
The Chase Manhattan
Bank NA TR
Hitachi Employee
401K Ret Plan Trust
New York, New York
- --------------------------------------------------------------------------------
JPMorgan Chase as Trustee
FBO Key Energy Services
401K Savings & Retirement PL
Kansas City, Missouri
- --------------------------------------------------------------------------------
Institutional Class
JPMorgan Chase Bank Trustee
Taylor Companies 401K
and Profit Sharing Plans
Kansas City, Missouri
Trustees of American
Century P/S &
401K Savings Plan & Trust
Kansas City, Missouri
Trustees of Hapag-Lloyd
America Inc
Svgs Inv Plan & Trust
Piscataway, New Jersey
- --------------------------------------------------------------------------------
R Class
MG Trust Company Cust FBO
Chad Eakin Concrete
401K Profit S
Denver, Colorado
MG Trust Company as
Agent for Frontier Trust Co
as TR Claymore C. Sieck 401K
Fargo, North Dakota
MG Trust Company Cust FBO
Medical Diagnostic
Laboratory Inc.
Denver, Colorado
MG Trust Company Cust
FBO Alternative Business
Furniture 401
Denver, Colorado
Patterson & Co FBO
Greenwood Mills Thrift Plan
Charlotte, North Carolina
MG Trust Company as Agent
for Frontier Trust Co
as TR The Neuroscience
Center of N NJ
Fargo, North Dakota
Julie Kutner Van De Zande,
Cornelius Van De Zande
FBO Emergo Group Inc. 401K
Austin, Texas
- --------------------------------------------------------------------------------
Advisor Class
Ohio National Life Insurance Co.
For Benefit of Separate Accounts
Cincinnati, Ohio
James B. Anderson TR
American Chamber or
Commerce Execut &
Restated 401K Plan & Trust
Springfield, Missouri
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
LIVESTRONG 2035 Portfolio
- --------------------------------------------------------------------------------
Investor Class
The Chase Manhattan
Bank NA TR
Hitachi Employee 401K
Ret Plan Trust
New York, New York
- --------------------------------------------------------------------------------
Institutional Class
Trustees of American
Century P/S
& 401K Savings Plan & Trust
Kansas City, Missouri
JPMorgan Chase Bank Trustee
FBO United Business
Media 401K Plan
Kansas City, Missouri
Trustees of Hapag-Lloyd
America Inc Svgs Inv
Plan & Trust
Piscataway, New Jersey
JPMorgan Chase Bank Trustee
Taylor Companies 401K
and Profit Sharing Plans
Kansas City, Missouri
M L P F & S
For the Sole Benefit
of its Customers
Jacksonville, Florida
UMB TR
American Century Executive
Def Comp Plan Trust
Kansas City, Missouri
- --------------------------------------------------------------------------------
R Class
Patterson & Co FBO
Greenwood Mills Thrift Plan
Charlotte, North Carolina
MG Trust Company
as Agent for
Frontier Trust Co as TR
Claymore C Sieck 401K
Fargo, North Dakota`
MG Trust Company TR
Trachte Channelframe
Buildings 401
Denver, Colorado
MG Trust Company Cust FBO
Equity Investment
Group Inc. 401K
Denver, Colorado
MCB Trust Services as Agent
Frontier Trust Co as Trustee
Mid-Atlantic Renal
Coalition 401 K
Fargo, North Dakota
MG Trust Company
as Agent for
Frontier Trust Co as TR
Architects Planners &
Conservators
Fargo, North Dakota
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
LIVESTRONG 2035 Portfolio
- --------------------------------------------------------------------------------
Advisor Class
Ohio National Life
Insurance Co.
For Benefit of
Separate Accounts
Cincinnati, Ohio
Amvescap Natl Trust Co
as Agent for
JPMorgan FBO
Beechmont Press
PS and Thrift Plan
Atlanta, Georgia
- --------------------------------------------------------------------------------
LIVESTRONG 2045 Portfolio
- --------------------------------------------------------------------------------
Investor Class
JPMorgan Chase Bank Trustee
Kearfott Guidance &
Navigation Corp.
Deferred Savings Plan
Kansas City, Missouri
The Chase Manhattan
Bank NA TR
Hitachi Employee 401K
Ret Plan Trust
New York, New York
JPMorgan Chase as Trustee
FBO Key Energy Services
401K Savings & Retirement PL
Kansas City, Missouri
- --------------------------------------------------------------------------------
Institutional Class
JPMorgan Chase Bank Trustee
Taylor Companies 401K
and Profit Sharing Plans
Kansas City, Missouri
Trustees of American Century P/S
& 401K Savings Plan & Trust
Kansas City, Missouri
Trustees of Hapag-Lloyd
America Inc.
Svgs Inv Plan & Trust
Piscataway, New Jersey
Prudential Investment
Mgmt Svc FBO
Mutual Fund Clients
Newark, New Jersey
- --------------------------------------------------------------------------------
R Class
Eric Wootom FBO
EMS Plumbing Heating AC Inc.
Safe Harbor 401K Plan
Ridgeland, Mississippi
Patterson & Co FBO
Greenwood Mills Thrift Plan
Charlotte, North Carolina
MG Trust Company Cust FBO
Chad Eakin Concrete
401K Profit S
Denver, Colorado
MG Trust Company TR
Precision Control Systems
401K Plan
Denver, Colorado
MG Trust Company TR
Trachte Channelframe
Buildings 401
Denver, Colorado
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
LIVESTRONG 2045 Portfolio
- --------------------------------------------------------------------------------
R Class
MG Trust Company as Agent for
Frontier Trust Co as TR
The Wall Street Group Inc.
401K P
Fargo, North Dakota
MG Trust Company Cust FBO
Medical Diagnostic
Laboratory Inc.
Denver, Colorado
- --------------------------------------------------------------------------------
Advisor Class
Ohio National Life Insurance Co.
For Benefit of Separate Accounts
Cincinnati, Ohio
Amvescap Natl Trust Co as Agent
For JP Morgan FBO
Beechmont Press PS
& Thrift Plan
Fargo, North Dakota
Frontier Trust Co. TR
Superior Products 401K Plan
Fargo, North Dakota
- --------------------------------------------------------------------------------
One Choice Portfolio: Very Conservative
- --------------------------------------------------------------------------------
Investor Class
- --------------------------------------------------------------------------------
None
- --------------------------------------------------------------------------------
One Choice Portfolio: Conservative
- --------------------------------------------------------------------------------
Investor Class
None
- --------------------------------------------------------------------------------
One Choice Portfolio: Moderate
- --------------------------------------------------------------------------------
Investor Class
None
- --------------------------------------------------------------------------------
One Choice Portfolio: Aggressive
- --------------------------------------------------------------------------------
Investor Class
None
- --------------------------------------------------------------------------------
One Choice Portfolio: Very Aggressive
- --------------------------------------------------------------------------------
Investor Class
None
- --------------------------------------------------------------------------------
AMERICAN CENTURY CAPITAL PORTFOLIOS
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Equity Income
- --------------------------------------------------------------------------------
Investor
Charles Schwab & Co., Inc.
San Francisco, California
National Financial
Services Corp.
New York, New York
- --------------------------------------------------------------------------------
Institutional
Fidelity FIIOC TR
FBO Certain Employee
Benefit Plans
c/o Fidelity Investments
Covington, Kentucky
Charles Schwab & Co. Inc.
San Francisco, California
UBATCO & Co.
FBO College Savings Plan
Lincoln, Nebraska
National Financial Services LLC
New York, New York
Mac & Co.
Mutual Fund Operations
Pittsburgh, Pennsylvania
Dingle & Co.
c/o Comerica Bank
Detroit, Michigan
- --------------------------------------------------------------------------------
C
None
- --------------------------------------------------------------------------------
R
ING Life Insurance
and Annuity Co.
Hartford, Connecticut
ING National Trust
Hartford, Connecticut
Hartford Life Ins. Co.
Hartford, Connecticut
Symetra Investment Services
Seattle, Washington
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Equity Income
- --------------------------------------------------------------------------------
Advisor
Charles Schwab & Co., Inc.
San Francisco, California
Delaware Charter
Guarantee & Trust
FBO Principal Financial Group
Des Moines, Iowa
Delaware Charter
Guarantee & Trust
FBO Various Qualified Plans
Des Moines, Iowa
- --------------------------------------------------------------------------------
Equity Index
- --------------------------------------------------------------------------------
Investor
Pershing LLC
Jersey City, New Jersey
- --------------------------------------------------------------------------------
Institutional
Northwestern Mutual Life
Milwaukee, Wisconsin
JPMorgan Chase
Bank Trustee
Texas Health
Retirement Program
Kansas City, Missouri
JPMorgan Chase Bank TR
Newell Rubbermaid 401k
Savings Plan and Trust
Kansas City, Missouri
- --------------------------------------------------------------------------------
JP Morgan Chase
& Co TTEE
Perot Systems Corp
Retirement
Saving Plan
Kansas City, Missouri
- --------------------------------------------------------------------------------
Large Company Value
- --------------------------------------------------------------------------------
Investor
Fidelity FIIOC TR
FBO Certain Employee
Benefit Plans
c/o Fidelity Investments
Covington, Kentucky
Saxon & Co.
Philadelphia, Pennsylvania
JP Morgan Chase
Bank Trustee
FBO Coca-Cola
Enterprises, Inc.
Matched Empl Svgs &
Investment Plan
Kansas City, Missouri
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Large Company Value
- --------------------------------------------------------------------------------
Institutional
- --------------------------------------------------------------------------------
Saxon & Co.
Philadelphia, Pennsylvania
JPMorgan Chase
Bank Trustee
FBO Toro Co.
Investment Savings
& Employee Stock
Ownership Plan
Kansas City, Missouri
JPMorgan Chase
Bank Trustee
Taylor Companies 401k
and Profit Sharing Plans
Kansas City, Missouri
JPMorgan Chase as Trustee
FBO HP Hood LLC
Retirement Savings Plan
Kansas City, Missouri
JP Morgan Chase
Bank Trustee
Collins & Aikman Pension Trust
Brooklyn, New York
JP Morgan Chase Bank Trustee
FBO Clarian Health Partners
Defined Contribution Plan
Kansas City, Missouri
- --------------------------------------------------------------------------------
A
Charles Schwab & Co., Inc.
San Francisco, California
- --------------------------------------------------------------------------------
B
MLPF&S Inc.
Jacksonville, Florida
- --------------------------------------------------------------------------------
C
MLPF&S, Inc.
Jacksonville, Florida
- --------------------------------------------------------------------------------
R
ING Life Insurance and
Annuity Co.
Hartford, Connecticut
ING National Trust
Hartford, Connecticut
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Large Company Value
- --------------------------------------------------------------------------------
Advisor
Nationwide Insurance
Co. Trust
Columbus, Ohio
TransAmerica Life
Insurance Company
Cedar Rapids, Iowa
Saxon & Co.
Philadelphia, Pennsylvania
American Century Serv. Corp.
Schwab - Moderately
Aggressive
Large Co. Value
Advisor Omnibus
Kansas City, Missouri
American Century Serv. Corp.
Schwab - Aggressive
Large Co. Value Advisor
Omnibus
Kansas City, Missouri
- --------------------------------------------------------------------------------
National Financial
Services LLC
New York, New York
- --------------------------------------------------------------------------------
American United Life
Group Retirement Annuity II
Indianapolis, Indiana
- --------------------------------------------------------------------------------
Mid Cap Value
- --------------------------------------------------------------------------------
Investor
None
- --------------------------------------------------------------------------------
Institutional
Rockhurst University
Endowment Fund
Kansas City, Missouri
Trustees of American Century
P/S & 401k Savings
Plan & Trust
Kansas City, Missouri
Charles Schwab & Co., Inc.
San Francisco, California
UMB TR
American Century Executive
Def Comp Plan Trust
Kansas City, Missouri
- --------------------------------------------------------------------------------
R
- --------------------------------------------------------------------------------
American Century Investment
Management Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
MG Trust Company Cust
FBO State Telephone
Company
401k P/S
Denver, Colorado
- --------------------------------------------------------------------------------
Advisor
Charles Schwab & Co., Inc.
San Francisco, California
Commerce Trust
Kansas City, Missouri
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
NT Large Company Value
- --------------------------------------------------------------------------------
Institutional
American Century Serv Port
LIVESTRONG™
2025 Portfolio
NT Large Company
Value Omnibus
Kansas City, Missouri
American Century Serv Corp
LIVESTRONG™
2015 Portfolio
NT Large Company
Value Omnibus
Kansas City, Missouri
American Century Serv Corp
LIVESTRONG™
2035 Portfolio
NT Large Company
Value Omnibus
Kansas City, Missouri
American Century Serv Corp
LIVESTRONG™
2045 Portfolio
NT Large Company
Value Omnibus
Kansas City, Missouri
American Century Serv Corp
LIVESTRONG™
Income Portfolio
NT Large Company
Value Omnibus
Kansas City, Missouri
- --------------------------------------------------------------------------------
NT Mid Cap Value
- --------------------------------------------------------------------------------
Institutional
American Century Serv Port
LIVESTRONG™
2025 Portfolio
NT Mid Cap Value Omnibus
Kansas City, Missouri
American Century Serv Corp
LIVESTRONG™
2015 Portfolio
NT Mid Cap Value Omnibus
Kansas City, Missouri
American Century Serv Corp
LIVESTRONG™
2035 Portfolio
NT Mid Cap Value Omnibus
Kansas City, Missouri
American Century Serv Corp
LIVESTRONG™
2045 Portfolio
NT Mid Cap Value Omnibus
Kansas City, Missouri
American Century Serv Corp
LIVESTRONG™
Income Portfolio
NT Mid Cap Value Omnibus
Kansas City, Missouri
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Real Estate
- --------------------------------------------------------------------------------
Investor
Charles Schwab & Co., Inc.
San Francisco, California
- --------------------------------------------------------------------------------
ICMA Retirement Trust-NAV
Washington, D.C.
- --------------------------------------------------------------------------------
Pershing LLC
Jersey City, New Jersey
- --------------------------------------------------------------------------------
Institutional
FIIOC
c/o Fidelity Investments
Covington, Kentucky
State Street Bank
& Trust Co TTEE
FBO Towers Perrin
Deferred PSP
Westwood, Massachusetts
The Chase Manhattan
Bank NA TR
Huntsman Corp Salary
Deferral Plan & Trust
New York, New York
Charles Schwab & Co., Inc.
San Francisco, California
JP Morgan Chase Bank Cust
FBO Housing Renewal
Local Agency
Retirement Plan
Brooklyn, New York
- --------------------------------------------------------------------------------
Advisor
Charles Schwab & Co., Inc.
San Francisco, California
Nationwide Trust Co. FSB
Columbus, Ohio
American United Life
Group Retirement Annuity II
Indianapolis, Indiana
- --------------------------------------------------------------------------------
The Guardian Insurance &
Annuity Company Inc.
Bethlehem, Pennsylvania
- --------------------------------------------------------------------------------
Reliance Trust Company
Directed TR
MetLife Retirement & Savings
Jersey City, New Jersey
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Small Cap Value
- --------------------------------------------------------------------------------
Investor
Delaware Charter Guar
& TR Co. Cust FBO
Principal Financial Group
Des Moines, Iowa
Charles Schwab & Co., Inc.
San Francisco, California
Amer United Life Ins
Co. Group
Retirement Annuity
Sep Acct II
Indianapolis, Indiana
- --------------------------------------------------------------------------------
Institutional
Fidelity FIIOC TR
FBO Certain Employee
Benefit Plans
c/o Fidelity Investments
Covington, Kentucky
MLPF&S
Jacksonville, Florida
- --------------------------------------------------------------------------------
C
None
- --------------------------------------------------------------------------------
Advisor
Nationwide Trust Company FSB
Columbus, Ohio
Hartford Life Insurance
Company
Hartford, Connecticut
Delaware Charter
Guarantee & Trust
FBO Principal Financial Group
Des Moines, Iowa
Saxon & Co.
Philadelphia, Pennsylvania
- --------------------------------------------------------------------------------
TransAmerica Life
Insurance Company
Cedar Rapids, Iowa
- --------------------------------------------------------------------------------
Value
- --------------------------------------------------------------------------------
Investor
None
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Value
- --------------------------------------------------------------------------------
Institutional
JPMorgan Chase
Bank Trustee
Bosch Savings Incentive Plan
Kansas City, Missouri
JP Morgan Chase
Bank Trustee
Black & Veatch Employee
Savings Plan
Kansas City, Missouri
State Street Bank & Trust TR
Lowes 401k Plan
Westwood, Massachusetts
Trustees of American
Century P/S &
401k Savings Plan & Trust
Kansas City, Missouri
The Chase Manhattan
Bank NA TR
Huntsman Corp. Salary
Deferral Plan & Trust
New York, New York
- --------------------------------------------------------------------------------
A
Charles Schwab & Co., Inc.
San Francisco, California
- --------------------------------------------------------------------------------
B
None
- --------------------------------------------------------------------------------
C
MLPF&S, Inc.
Jacksonville, Florida
- --------------------------------------------------------------------------------
R
- --------------------------------------------------------------------------------
Trustlynx & Co.
Denver, Colorado
- --------------------------------------------------------------------------------
American Century Investment
Management Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
KCB Services and Company
FBO Jerry Austin
Quads Trust Company
Frederick, Maryland
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Value
- --------------------------------------------------------------------------------
Advisor
Nationwide Trust
Company FSB
Columbus, Ohio
Delaware Charter
Guarantee & Trust
FBO Principal
Financial Group
Des Moines, Iowa
Nationwide Insurance
Company QPVA
Columbus, Ohio
James B. Anderson TR
American Chamber of
Commerce Execut. &
Restated 401k Plan & Trust
Springfield, Missouri
Reliance Trust Co.
Directed TR MetLife
Retirement & Savings
Jersey City, New Jersey
- --------------------------------------------------------------------------------
AMERICAN CENTURY GROWTH FUNDS, INC.
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Legacy Focused Large Cap
- --------------------------------------------------------------------------------
Investor Class
American Century Investment
Management, Inc.
Kansas City, Missouri
Robert T. Jackson
I.R.A. - Rollover
Naples, Florida
Harold S. Bradley and Kathryn
Andrasik-Bradley
JT WROS
Leawood, Kansas
Michael Shih &
Ling T Shih Trustee
Ling T Shih MD PC
Pension Trust
Midland, Michigan
- --------------------------------------------------------------------------------
Institutional Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
R Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
Advisor Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
Pershing LLC
Jersey City, New Jersey
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Legacy Large Cap
- --------------------------------------------------------------------------------
Investor Class
American Century Investment
Management, Inc.
Kansas City, Missouri
Ding - Jen Lee
I.R.A. Rollover
Columbia, Maryland
- --------------------------------------------------------------------------------
Michael Shih &
Ling T Shih Trustee
Ling T Shih MD PC
Pension Trust
Midland, Michigan
- --------------------------------------------------------------------------------
Institutional Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
R Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
Advisor Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
Legacy Multi Cap
- --------------------------------------------------------------------------------
Investor Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
Michael Shih &
Ling T Shih Trustee
Ling T Shih MD PC Pension Trust
Midland, Michigan
- --------------------------------------------------------------------------------
Institutional Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
R Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
Advisor Class
American Century Investment
Management, Inc.
Kansas City, Missouri
Pershing LLC
Jersey City, New Jersey
- --------------------------------------------------------------------------------
AMERICAN CENTURY MUTUAL FUNDS, INC.
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Balanced
- --------------------------------------------------------------------------------
Investor Class
Charles Schwab & Co., Inc.
San Francisco, California
- --------------------------------------------------------------------------------
Institutional Class
National Financial
Services LLC
New York, New York
Trustees of American Century
Mutual Funds Indep Directors
Def Comp Plan
Kansas City, Missouri
- --------------------------------------------------------------------------------
Advisor Class
Charles Schwab & Co., Inc.
San Francisco, California
MLPF&S, Inc.
Jacksonville, Florida
Delaware Charter
Guarantee & Trust
Des Moines, Iowa
National Financial
Services LLC
New York, New York
Mitra & Co Exp
M&I Trust Company NA
Milwaukee, Wisconsin
Nationwide Trust Company
Columbus, Ohio
- --------------------------------------------------------------------------------
Capital Growth
- --------------------------------------------------------------------------------
Investor Class
American Century Investment
Management, Inc.
Kansas City, Missouri
National Financial Services Corp
New York, New York
Charles Schwab & Co
San Francisco, California
- --------------------------------------------------------------------------------
Institutional Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
A Class
American Century Investment
Management, Inc.
Kansas City, Missouri
Charles Schwab & Co., Inc.
San Francisco, California
American Enterprise
Investment Svcs
Minneapolis, Minnesota
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Capital Growth
- --------------------------------------------------------------------------------
B Class
American Century Investment
Management, Inc.
Kansas City, Missouri
MLPF&S, Inc.
Jacksonville, Florida
Bear Stearns Securities Corp.
Brooklyn, New York
- --------------------------------------------------------------------------------
C Class
American Century Investment
Management, Inc.
Kansas City, Missouri
AG Edwards & Sons Inc.
FBO RRF Investments LLC
St. Louis, Missouri
MLPF&S Inc
Jacksonville, Florida
First Clearing, LLC
Annandale, New Jersey
- --------------------------------------------------------------------------------
R Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
Capital Value
- --------------------------------------------------------------------------------
Investor Class
Charles Schwab & Co., Inc.
San Francisco, California
Saxon & Co
Philadelphia, Pennsylvania
US Bank Trustee
Private Asset O/A Platform
Milwaukee, Wisconsin
- --------------------------------------------------------------------------------
Institutional Class
Charles Schwab & Co., Inc.
San Francisco, California
Saxon & Co.
Philadelphia, Pennsylvania
- --------------------------------------------------------------------------------
Advisor Class
Nationwide Trust Company
Columbus, Ohio
Charles Schwab & Co., Inc.
San Francisco, California
National Financial Services Corp
New York, New York
- --------------------------------------------------------------------------------
Focused Growth
- --------------------------------------------------------------------------------
Investor Class
National Financial Services LLC
New York, New York
- --------------------------------------------------------------------------------
Fundamental Equity
- --------------------------------------------------------------------------------
Investor Class
Raymond James & Assoc Inc.
FBO Mammoser
St. Petersburg, Florida
Raymond James & Assoc Inc.
FBO Dubey ML IRA
St. Petersburg, Florida
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Fundamental Equity
- --------------------------------------------------------------------------------
Investor Class
Charles Schwab & Co., Inc.
San Francisco, California
Gerard P. Sullivan &
Gail M. Sullivan JT WROS
Overland Park, Kansas
- --------------------------------------------------------------------------------
Institutional Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
A Class
Charles Schwab & Co., Inc.
San Francisco, California
- --------------------------------------------------------------------------------
B Class
MLPF&S Inc.
Jacksonville, Florida
- --------------------------------------------------------------------------------
C Class
MLPF&S Inc.
Jacksonville, Florida
- --------------------------------------------------------------------------------
R Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
Giftrust
- --------------------------------------------------------------------------------
Investor Class
None
- --------------------------------------------------------------------------------
Growth
- --------------------------------------------------------------------------------
Investor Class
None
- --------------------------------------------------------------------------------
Institutional Class
State Street Bank TR
Lockheed Martin Co
Defined Contributions
Plans Master Trust
Westwood, Massachusetts
JP Morgan Chase Bank TTEE
Avon Personal Savings
Account Plan Trust
New York, New York
- --------------------------------------------------------------------------------
C Class
Pershing LLC
Jersey City, New Jersey
- --------------------------------------------------------------------------------
NFS LLC
FEBO A Daigger & Co
Inc. LED DEF
Vernon Hills, Illinois
- --------------------------------------------------------------------------------
R Class
ING Life Insurance
and Annuity Co
Hartford, Connecticut
MG Trust Cust FBO
Resource Control
Associates Inc.
Denver, Colorado
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Growth
- --------------------------------------------------------------------------------
R Class
MLPF&S, Inc.
Jacksonville, Florida
- --------------------------------------------------------------------------------
Advisor Class
Charles Schwab & Co., Inc.
San Francisco, California
Nationwide Trust Company FSB
Columbus, Ohio
- --------------------------------------------------------------------------------
Heritage
- --------------------------------------------------------------------------------
Investor Class
Charles Schwab & Co., Inc.
San Francisco, California
- --------------------------------------------------------------------------------
Institutional Class
Chase Manhattan
Bank Trustee
The BOC Group Inc. Savings
Investment Plan Trust
New York, New York
Trustees of American Century
P/S & 401(k) Savings
Plan & Trust
Kansas City, Missouri
State Street Bank
& Trust Trustee
AFP Habitat
North Quincy, Massachusetts
- --------------------------------------------------------------------------------
C Class
None
- --------------------------------------------------------------------------------
Advisor Class
Charles Schwab & Co., Inc.
San Francisco, California
MCB Trust Services
as Agent For Citizens Bank
as Trustee FBO
Centimark Corporation
401k Plan
Providence, Rhode Island
- --------------------------------------------------------------------------------
Mid Cap Growth
- --------------------------------------------------------------------------------
Investor Class
American Century Investment
Management, Inc.
Kansas City, Missouri
I.R.A. - Roth
Steve A. Vento
Olympia, Washington
- --------------------------------------------------------------------------------
Institutional Class
Northwestern Mutual Life
Milwaukee, Wisconsin
Maroon Inc.
Milwaukee, Wisconsin
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Mid Cap Growth
- --------------------------------------------------------------------------------
A Class
None
- --------------------------------------------------------------------------------
B Class
None
- --------------------------------------------------------------------------------
C Class
American Century Investment
Management, Inc.
Kansas City, Missouri
Scottrade Inc
FBO John J. Harrison IRA
St. Louis, Missouri
Pershing LLC
Jersey City, New Jersey
- --------------------------------------------------------------------------------
R Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
New Opportunities
- --------------------------------------------------------------------------------
Investor Class
Trustees of American
Century Profit
Sharing and 401K
Savings Plan & Trust
Kansas City, Missouri
- --------------------------------------------------------------------------------
New Opportunities II
- --------------------------------------------------------------------------------
Investor Class
US Bank Trustee
Private Asset O/A Platform
Milwaukee, Wisconsin
American Century Investment
Management, Inc.
Kansas City, Missouri
MLPF&S Inc.
Jacksonville, Florida
- --------------------------------------------------------------------------------
Institutional Class
None
- --------------------------------------------------------------------------------
A Class
Charles Schwab & Co., Inc.
San Francisco, California
- --------------------------------------------------------------------------------
B Class
None
- --------------------------------------------------------------------------------
C Class
MLPF&S Inc.
Jacksonville, Florida
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
NT Growth
- --------------------------------------------------------------------------------
Institutional Class
American Century Serv Port
LIVESTRONG™
2025 Portfolio
NT Growth Omnibus
Kansas City, Missouri
American Century Serv Corp
LIVESTRONG™
2035 Portfolio
NT Growth Omnibus
Kansas City, Missouri
American Century Serv Corp
LIVESTRONG™
2015 Portfolio
NT Growth Omnibus
Kansas City, Missouri
American Century Serv Corp
LIVESTRONG™
2045 Portfolio
NT Growth Omnibus
Kansas City, Missouri
- --------------------------------------------------------------------------------
NT Vista
- --------------------------------------------------------------------------------
Institutional Class
American Century Serv Port
LIVESTRONG™
Kansas City, Missouri
American Century Serv Corp
LIVESTRONG™
2035 Portfolio
NT Vista Omnibus
Kansas City, Missouri
American Century Serv Corp
LIVESTRONG™
2015 Portfolio
NT Vista Omnibus
Kansas City, Missouri
American Century Serv Corp
LIVESTRONG™
2045 Portfolio
NT Vista Omnibus
Kansas City, Missouri
- --------------------------------------------------------------------------------
Select
- --------------------------------------------------------------------------------
Investor Class
None
- --------------------------------------------------------------------------------
Institutional Class
Northwestern Mutual Life
Milwaukee, Wisconsin
Maroon Inc.
Milwaukee, Wisconsin
The Chase Manhattan
Bank NA TR
Huntsman Corp Salary
Deferral Plan & Trust
New York, New York
The Chase Manhattan
Bank NA TR
Huntsman Corp MPP
Plan & Trust
New York, New York
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Select
- --------------------------------------------------------------------------------
A Class
Charles Schwab & Co., Inc.
San Francisco, California
- --------------------------------------------------------------------------------
B Class
None
- --------------------------------------------------------------------------------
C Class
MLPF&S Inc.
Jacksonville, Florida
- --------------------------------------------------------------------------------
R Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
Advisor Class
UMB Bank NA
Fiduciary for Various
Deferred Accounts
Topeka, Kansas
MG Trust Company Cust FBO
Rosen Hotels & Resorts Inc
Denver, Colorado
Security Benefit Life
Insurance Co.
Topeka, Kansas
MLPF&S Inc.
Jacksonville, Florida
Orchard Trust Company, LLC Cust
RHD Investors Choice 403B7
Englewood, Colorado
Saxon & Co
Philadelphia, Pennsylvania
- --------------------------------------------------------------------------------
Small Cap Growth
- --------------------------------------------------------------------------------
Investor Class
Charles Schwab & Co., Inc.
San Francisco, California
Prudential Investment MGMT SVC
Newark, New Jersey
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
Institutional Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
A Class
None
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Small Cap Growth
- --------------------------------------------------------------------------------
B Class
None
- --------------------------------------------------------------------------------
C Class
Pershing LLC
Jersey City, New Jersey
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
R Class
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
Ultra
- --------------------------------------------------------------------------------
Investor Class
Charles Schwab & Co., Inc.
San Francisco, California
- --------------------------------------------------------------------------------
Institutional Class
JP Morgan Chase Bank Trustee
401(k) Savings Plan of
JP Morgan Chase & Co. Trust
Brooklyn, New York
Fidelity FIIOC TR
FBO Intel SERP 401k
Covington, Kentucky
JP Morgan Chase Bank Trustee
Bosch Savings Incentive Plan
Kansas City, Missouri
JP Morgan Chase TR
The Interpublic Group of
Companies Inc.
Savings Plan Trust
New York, New York
Nationwide Trust Company
FBO Participating
Retirement Plans
TPA-NTC
Columbus, Ohio
Northern Trust Co TR
Goodyear Tire &
Rubber Company
401K Plan Trust
Chicago, Illinois
- --------------------------------------------------------------------------------
C Class
Boone County National
Bank Cust
FBP MO Bar 457(B) Plan
Columbia, Missouri
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Ultra
- --------------------------------------------------------------------------------
R Class
ING National Trust
Hartford, Connecticut
ING Life Insurance and
Annuity Co.
Hartford, Connecticut
Massachusetts Mutual
Life Insurance
Springfield, Massachusetts
Hartford Life Ins Co
Hartford, Connecticut
Symetra Investment Services
Seattle, Washington
- --------------------------------------------------------------------------------
Advisor Class
- --------------------------------------------------------------------------------
Nationwide Trust Company
Columbus, Ohio
Charles Schwab & Co., Inc.
San Francisco, California
ING Life Insurance
and Annuity Co
Hartford, Connecticut
PRIAC as Trustee/Custodian
For Various Retirement Plans
Kansas City, Missouri
- --------------------------------------------------------------------------------
Veedot
- --------------------------------------------------------------------------------
Investor Class
None
- --------------------------------------------------------------------------------
Institutional Class
Trustees of American
Century P/S
& 401K Savings Plan & Trust
Kansas City, Missouri
American Century Investment
Management, Inc.
Kansas City, Missouri
UMB TR
American Century Executive
Deferred Comp Plan Trust
Kansas City, Missouri
- --------------------------------------------------------------------------------
Vista
- --------------------------------------------------------------------------------
Investor Class
John Hancock Life Ins Co. USA
Toronto, Ontario
- --------------------------------------------------------------------------------
Institutional Class
Delaware Charter
Guarantee & Trust
Des Moines, Iowa
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Vista
- --------------------------------------------------------------------------------
Institutional Class
Trustees of American
Century P/S
and 401K Savings Plan
and Trust
Kansas City, Missouri
The Chase Manhattan
Bank NA TR
Huntsman Corp Salary
Deferral Plan & Trust
New York, New York
JP Morgan Chase
Bank Trustee
Black & Veatch Employee
Savings Plan
Kansas City, Missouri
JP Morgan Chase
Bank Trustee
Astellas US Retirement
and Savings Plan
Kansas City, Missouri
- --------------------------------------------------------------------------------
C Class
Delaware Charter
Guarantee & Trust
FBO Various Qualified Plans
Des Moines, Iowa
- --------------------------------------------------------------------------------
Delaware Charter
Guarantee & Trust
FBO Principal Financial Group
Omnibus Qualified
Des Moines, Iowa
- --------------------------------------------------------------------------------
R Class
MFS Heritage Trust Co
Boston, Massachusetts
Mid-Atlantic Trust
FBO Aqua-Chem Ret
PL & Savings
Ridgeland, Mississippi
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
Advisor Class
Trustar/Delaware Charter
FBO Principal Financial Group
Wilmington, Delaware
Charles Schwab & Co., Inc.
San Francisco, California
Oklahoma Public Employees
Retirement System
Board of Trustees
FBO OK State Employees
Def Comp Plan
Greenwood Village, Colorado
Delaware Charter
Guarantee & Trust
FBO Various Qualified Plans
Des Moines, Iowa
Transamerica Life
Insurance Company
Cedar Rapids, Iowa
- --------------------------------------------------------------------------------
AMERICAN CENTURY STRATEGIC ASSET ALLOCATIONS, INC.
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Strategic Allocation: Conservative
- --------------------------------------------------------------------------------
Investor
JPMorgan Chase Bank Trustee
Andersen Corporation
Employees 401k Plan
Kansas City, Missouri
The Guardian Insurance
& Annuity Company, Inc.
Bethlehem, Pennsylvania
- --------------------------------------------------------------------------------
Institutional
State Street Corp Trustee
FBO Hallmark Cards Inc.
Westwood, Massachusetts
- --------------------------------------------------------------------------------
A
Charles Schwab & Co.
San Francisco, California
- --------------------------------------------------------------------------------
M L P F & S Inc.
Jacksonville, Florida
- --------------------------------------------------------------------------------
B
None
- --------------------------------------------------------------------------------
C
M L P F & S Inc.
Jacksonville, Florida
- --------------------------------------------------------------------------------
R
None
- --------------------------------------------------------------------------------
Advisor
Saxon & Co.
Philadelphia, Pennsylvania
Reliance Trust Company
Directed
TR Metlife Retirement
& Savings
Jersey City, New Jersey
Charles Schwab & Co., Inc.
San Francisco, California
- --------------------------------------------------------------------------------
Strategic Allocation: Moderate
- --------------------------------------------------------------------------------
Investor
JPMorgan Chase Bank Trustee
Collins & Aikman Personal Savings Plan
Kansas City, Missouri
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Strategic Allocation: Moderate
- --------------------------------------------------------------------------------
Institutional
State Street Corp Trustee
FBO Hallmark Cards Inc
Westwood, Massachusetts
JPMorgan Chase
Bank Trustee FBO
Clarian Health Partners
Defined Contribution Plan
Kansas City, Missouri
Chase Manhattan
Bank Trustee
The BOC Group Inc. Savings
Investment Plan Trust
New York, New York
JPMorgan Chase
Bank Trustee
Pennzoil Quaker State Co.
Savings and Investment Plan
Kansas City, Missouri
- --------------------------------------------------------------------------------
A
Charles Schwab & Co., Inc.
San Francisco, California
- --------------------------------------------------------------------------------
B
M L P F & S Inc.
Jacksonville, Florida
- --------------------------------------------------------------------------------
C
M L P F & S Inc.
Jacksonville, Florida
- --------------------------------------------------------------------------------
R
MG Trust Co Cust
FBO Craft Turf Farms Ret Pl
Denver, Colorado
MG Trust Cust FBO Natren Inc
401k Profit Sharing Plan
Denver, Colorado
MG Trust Company Cust
FBO Russell Newman 401k
Denver, Colorado
DWS Trust Company TTEE
FBO Harbor One Credit
Union 401k Plan
Salem, New Hampshire
A S T Trust Company Trustee
FBO Texas Retina Assoc
Retirement Plan
Phoenix, Arizona
- --------------------------------------------------------------------------------
Advisor
Saxon and Co.
Philadelphia, Pennsylvania
Reliance Trust
Company Directed
TR Metlife Retirement
& Savings
Jersey City, New Jersey
Charles Schwab & Co., Inc.
San Francisco, California
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Strategic Allocation: Aggressive
- --------------------------------------------------------------------------------
Investor
Charles Schwab & Co., Inc.
San Francisco, California
Union Bank TR Nominee FBO
Select Benefit Omnibus
San Diego, California
- --------------------------------------------------------------------------------
Institutional
State Street Corp Trustee
FBO Hallmark Cards Inc
Westwood, Massachusetts
The Chase Manhattan
Bank NA TR
Huntsman Corp. Salary
Deferral Plan & Trust
New York, New York
JPMorgan Chase & Co TR
Marconi USA Wealth
Accumulation
Plan Trust
New York, New York
JPMorgan Chase
Bank Trustee
St. Jude Medical Inc.
PS Employee
Savings Plan and Trust
Kansas City, Missouri
Trustlynx & Co
Denver, Colorado
JPMorgan Chase
Bank Trustee
Sypris Retirement
Savings Plan
Kansas City, Missouri
Chase Manhattan
Bank Trustee
The BOC Group Inc. Savings
Investment Plan Trust
New York, New York
- --------------------------------------------------------------------------------
A
Charles Schwab & Co., Inc.
San Francisco, California
- --------------------------------------------------------------------------------
B
M L P F & S Inc.
Jacksonville, Florida
- --------------------------------------------------------------------------------
C
M L P F & S Inc.
Jacksonville, Florida
- --------------------------------------------------------------------------------
R
None
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Strategic Allocation: Aggressive
- --------------------------------------------------------------------------------
Advisor
Saxon and Co.
Philadelphia, Pennsylvania
Reliance Trust
Company Directed
TR Metlife Retirement
& Savings
Jersey City, New Jersey
Charles Schwab & Co., Inc.
San Francisco, California
- --------------------------------------------------------------------------------
Newton
- --------------------------------------------------------------------------------
Investor
American Century Investment
Management, Inc.
Kansas City, Missouri
James E. Stowers III TR
Shawnee Mission, Kansas
- --------------------------------------------------------------------------------
Harold S. Bradley and
Kathryn Andrasik-Bradley
Leawood, Kansas
- --------------------------------------------------------------------------------
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
VP Balanced
- --------------------------------------------------------------------------------
Class I
Nationwide Insurance Company
Columbus, OH
Symetra Financial Services
Redmond, WA
Lincoln National Life Insurance
Fort Wayne, IN
Lincoln Life & Annuity
Company of New York
Fort Wayne, IN
- --------------------------------------------------------------------------------
VP Capital Appreciation
- --------------------------------------------------------------------------------
Class I
Mutual of America
New York, NY
- --------------------------------------------------------------------------------
Nationwide Insurance Company
Columbus, OH
- --------------------------------------------------------------------------------
VP Income & Growth
- --------------------------------------------------------------------------------
Class I
Nationwide Insurance Company
Columbus, OH
CM Life Insurance Company
Springfield, MA
Massachusetts Mutual
Life Insurance Co.
Springfield, MA
- --------------------------------------------------------------------------------
Class II
Nationwide Insurance Company
Columbus, OH
Minnesota Mutual Life
Saint Paul, MN
- --------------------------------------------------------------------------------
Class III
Nationwide Insurance Company
Columbus, OH
- --------------------------------------------------------------------------------
VP International
- --------------------------------------------------------------------------------
Class I
Nationwide Insurance Company
Columbus, OH
IDS Life Insurance Company
Minneapolis, MN
M L P F & S
Jacksonville, FL
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
VP International
- --------------------------------------------------------------------------------
Class II
IDS Life Insurance Company
Minneapolis, MN
Midland National Life
Insurance Company
Des Moines, IA
- --------------------------------------------------------------------------------
Class III
Nationwide Insurance Company
Columbus, OH
- --------------------------------------------------------------------------------
Class IV
Nationwide Insurance Company
Columbus, OH
- --------------------------------------------------------------------------------
VP Large Company Value
- --------------------------------------------------------------------------------
Class I
Annuity Investor
Life Insurance Company
Cincinnati, OH
- --------------------------------------------------------------------------------
Class II
Symetra Financial Services
Redmond, WA
- --------------------------------------------------------------------------------
Midland National Life
Insurance Company
Des Moines, IA
- --------------------------------------------------------------------------------
Annuity Investor Life
Insurance Company
Cincinnati, OH
- --------------------------------------------------------------------------------
VP Mid Cap Value
- --------------------------------------------------------------------------------
Class I
Annuity Investor Life
Insurance Company
Cincinnati, OH
- --------------------------------------------------------------------------------
Nationwide Insurance Company
Columbus, OH
- --------------------------------------------------------------------------------
Class II
American Century Investment
Management, Inc.
Kansas City, MO
- --------------------------------------------------------------------------------
Nationwide Insurance Company
Columbus, OH
- --------------------------------------------------------------------------------
VP Ultra
- --------------------------------------------------------------------------------
Class I
Nationwide Insurance Company
Columbus, OH
M L P F & S
Jacksonville, FL
First Variable Life
Insurance Company
Des Moines, IA
Principal Life Insurance
Company
Des Moines, IA
Travelers Insurance Company
Hartford, CT
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
VP Ultra
- --------------------------------------------------------------------------------
Class II
Minnesota Mutual Life
Saint Paul, MN
IDS Life Insurance Company
Minneapolis, MN
American Enterprise Life
Minneapolis, MN
Principal Life Insurance
Company
Des Moines, IA
Nationwide Insurance
Company
Columbus, OH
Security Benefit Life
FBO SBL Advance Designs
Topeka, KS
- --------------------------------------------------------------------------------
Class III
Nationwide Insurance Company
Columbus, OH
- --------------------------------------------------------------------------------
VP Value
- --------------------------------------------------------------------------------
Class I
IDS Life Insurance Company
Minneapolis, MN
Nationwide Insurance Company
Columbus, OH
Massachusetts Mutual
Life Insurance Co.
Springfield, MA
CM Life Insurance Company
Springfield, MA
- --------------------------------------------------------------------------------
Class II
IDS Life Insurance Company
Minneapolis, MN
Nationwide Insurance Company
Columbus, OH
Principal Life Insurance
Company
Des Moines, IA
- --------------------------------------------------------------------------------
Class III
Nationwide Insurance Company.
Columbus, OH
- --------------------------------------------------------------------------------
VP Vista
- --------------------------------------------------------------------------------
Class I
National Life of Vermont
Montpelier, VT
Farm Bureau Life
Insurance Company
West Des Moines, IA
Modern Woodmen of America
West Des Moines, IA
Annuity Investor Life
Insurance Company
Cincinnati, OH
- --------------------------------------------------------------------------------
Class II
Nationwide Insurance Company
Columbus, OH
- --------------------------------------------------------------------------------
AMERICAN CENTURY WORLD MUTUAL FUNDS, INC.
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Emerging Markets
- --------------------------------------------------------------------------------
Investor
None
- --------------------------------------------------------------------------------
Institutional
Bost & Co
Eastman Kodak
Employee Savings and
Investment Plan
Pittsburgh, PA
1999 Irrevocable US
Annuity & Gif
c/o Henry Fett
St. Louis, MO
Trustees of American
Century P/S
& 401(k) Savings Plan & Trust
Kansas City, MO
- --------------------------------------------------------------------------------
C
MG Trust Company Trustee
FBO Calhoun Dental Ltd
Denver, CO
- --------------------------------------------------------------------------------
Advisor
Charles Schwab & Co., Inc.
San Francisco, CA
National Financial
Services LLC
New York, NY
- --------------------------------------------------------------------------------
Global Growth
- --------------------------------------------------------------------------------
Investor
Charles Schwab & Co., Inc.
San Francisco, CA
- --------------------------------------------------------------------------------
Institutional
Trustees of American
Century P/S
& 401(k) Savings Plan & Trust
Kansas City, MO
UMB TR American
Century Executive
Def Comp Plan Trust
Kansas City, MO
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Global Growth
- --------------------------------------------------------------------------------
A
Charles Schwab & Co., Inc.
San Francisco, CA
- --------------------------------------------------------------------------------
B
Pershing LLC
Jersey City, NJ
American Enterprise
Investment Svcs
Minneapolis, MN
American Enterprise
Investment Svcs
Minneapolis, MN
American Enterprise
Investment Svcs
Minneapolis, MN
American Enterprise
Investment Svcs
Minneapolis, MN
- --------------------------------------------------------------------------------
C
Pershing LLC
Jersey City, NJ
First Clearing LLC
Judith Francis Hudson
IRA Account
Glen Allen, VA
UBS Financial Services Inc.
FBO Jean Smith LLC
Washington, DC
- --------------------------------------------------------------------------------
R
American Century Investment
Management, Inc.
Kansas City, MO
- --------------------------------------------------------------------------------
Advisor
Charles Schwab & Co., Inc.
San Francisco, CA
Union Bank Trust
Nominee
FBO Select Benefit Omnibus
San Diego, CA
Morris & Co.
South Bend, IN
National Financial
Services LLC
New York, NY
- --------------------------------------------------------------------------------
International Discovery
- --------------------------------------------------------------------------------
Investor
Charles Schwab & Co., Inc.
San Francisco, CA
- --------------------------------------------------------------------------------
Institutional
Trustees of American
Century P/S
& 401(k) Savings Plan & Trust
Kansas City, MO
Balsa & Co
Dallas, TX
JPMorgan Chase TR
Ericsson Capital Accumulation
and Savings Plan
Kansas City, MO
Charles Schwab & Co., Inc.
San Francisco, CA
Aspirus Wausau Hospital Inc.
Wausau, WI
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
International Discovery
- --------------------------------------------------------------------------------
Advisor
FISERV ISS & Co
FBO Arthur C. Anderson
Denver, CO
FISERV ISS & Co TTEE
FBO Jill R Eaton
Denver, CO
- --------------------------------------------------------------------------------
International Growth
- --------------------------------------------------------------------------------
Investor
Charles Schwab & Co., Inc.
San Francisco, CA
- --------------------------------------------------------------------------------
Institutional
The Chase Manhattan
Bank NA TR
Huntsman Corp Salary
Deferral Plan & Trust
New York, NY
State Street Bank & Trust TR
Lowes 401K Plan
Westwood, MA
Trustees of American Century
P/S & 401K Savings
Plan & Trust
Kansas City, MO
A.G. Investments Co., L.P.
Wilmington, DE
Charles Schwab & Co., Inc.
San Francisco, CA
Chase Manhattan
Bank NA TR
Huntsman Corp MPP
Plan & Trust
New York, NY
- --------------------------------------------------------------------------------
A
Charles Schwab & Co., Inc.
San Francisco, CA
- --------------------------------------------------------------------------------
B
MLPF&S Inc.
Jacksonville, FL
- --------------------------------------------------------------------------------
C
MLPF&S Inc.
Jacksonville, FL
- --------------------------------------------------------------------------------
R
Symetra Investment Services
Seattle, WA
ING Life Insurance and
Annuity Co
Hartford, CT
MLPF&S Inc.
Jacksonville, FL
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
International Growth
- --------------------------------------------------------------------------------
Advisor
State Street Bank
FBO ADP Daily Val
North Quincy, MA
Nationwide Insurance
Company QPVA
Columbus, OH
Nationwide Trust Company FSB
Columbus, OH
- --------------------------------------------------------------------------------
International Opportunities
- --------------------------------------------------------------------------------
Investor
Charles Schwab & Co., Inc.
San Francisco, CA
- --------------------------------------------------------------------------------
Institutional
American Century Investment
Management, Inc.
Kansas City, MO
- --------------------------------------------------------------------------------
International Stock
- --------------------------------------------------------------------------------
Investor
None
- --------------------------------------------------------------------------------
International Value
- --------------------------------------------------------------------------------
Investor
American Century Investment
Management, Inc.
Kansas City, MO
E* Trade Clearing LLC
IRA Cust
W Sacramento, CA
E* Trade Clearing LLC
IRA Cust
W Sacramento, CA
E* Trade Clearing LLC
IRA Cust
W Sacramento, CA
- --------------------------------------------------------------------------------
Institutional
Northwestern Mutual Life
Milwaukee, WI
- --------------------------------------------------------------------------------
A
None
- --------------------------------------------------------------------------------
B
None
- --------------------------------------------------------------------------------
C
American Century Investment
Management, Inc.
Kansas City, Missouri
- --------------------------------------------------------------------------------
R
American Century Investment
Management, Inc.
Kansas City, MO
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Life Sciences
- --------------------------------------------------------------------------------
Investor
Charles Schwab & Co., Inc.
San Francisco, CA
- --------------------------------------------------------------------------------
Institutional
Trustees of American Century
P/S & 401K Savings
Plan & Trust
Kansas City, MO
UMB TR American Century
Executive Def Comp Plan Trust
Kansas City, MO
- --------------------------------------------------------------------------------
C
American Century Investment
Management, Inc.
Kansas City, MO
Citigroup Global Markets Inc.
New York, NY
American Enterprise
Investment Svcs
Minneapolis, MN
- --------------------------------------------------------------------------------
Advisor
MG Trust Company Cust FBO
Scott S Liquid-Gold Inc
401(K) Plan
Denver, CO
MG Trust Company
Cust FBO KCG
Communications 401(K) Plan
Denver, CO
AG Edwards & Sons C/F
Edward Hlipala Sr Decd FBO
Edward Hlipala Jr
Waterford, CT
Nationwide Trust
Company FSB
Columbus, OH
Frontier Trust Company TTEE
FBO Browne Blebotte
Wilson & Horn
PLLC 401K Plan
Fargo, ND
Symetra Investment Services
Seattle, WA
UMBSC & CO
FBO Ronald Kufahl IRA
Kansas City, MO
National Financial
Services LLC
New York, NY
Pershing LLC
Jersey City, NJ
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
NT Emerging Markets
- --------------------------------------------------------------------------------
Institutional
American Century Serv Port
LIVESTRONG 2025 Portfolio
NT Emerging Markets
Omnibus
Kansas City, MO
American Century Serv Corp
LIVESTRONG 2035 Portfolio
NT Emerging Markets
Omnibus
Kansas City, MO
American Century Serv Corp
LIVESTRONG 2045 Portfolio
NT Emerging Markets
Omnibus
Kansas City, MO
American Century Serv Corp
LIVESTRONG 2015 Portfolio
NT Emerging Markets
Omnibus
Kansas City, MO
- --------------------------------------------------------------------------------
NT International Growth
- --------------------------------------------------------------------------------
Institutional
American Century Serv Port
LIVESTRONG 2025 Portfolio
NT International
Growth Omnibus
Kansas City, MO
American Century Serv Corp
LIVESTRONG 2015 Portfolio
NT International
Growth Omnibus
Kansas City, MO
American Century Serv Corp
LIVESTRONG 2035 Portfolio
NT International
Growth Omnibus
Kansas City, MO
American Century Serv Corp
LIVESTRONG 2045 Portfolio
NT International
Growth Omnibus
Kansas City, MO
American Century Serv Corp
LIVESTRONG Income Portfolio
NT International
Growth Omnibus
Kansas City, MO
- --------------------------------------------------------------------------------
Technology
- --------------------------------------------------------------------------------
Investor
Charles Schwab & Co., Inc.
San Francisco, CA
- --------------------------------------------------------------------------------
PERCENTAGE OF PERCENTAGE OF
OUTSTANDING OUTSTANDING
FUND/ SHARES OWNED SHARES OWNED
CLASS SHAREHOLDER OF RECORD BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Technology
- --------------------------------------------------------------------------------
Institutional
Trustees of American Century
P/S & 401K Savings
Plan & Trust
Kansas City, MO
UMB TR American Century
Executive Def Comp
Plan Trust
Kansas City, MO
- --------------------------------------------------------------------------------
Advisor
MG Trust Cust
FBO Gibbs M. Smith Inc.
401k P/S Plan
Denver, CO
MG Trust Company Cust
FBO Carmel Architectural
Sales 401K P
Denver, CO
Pershing LLC
Jersey City, NJ
MG Trust Cust FBO
Cincinnati Fastener Co
401k Plan
Denver, CO
National Financial
Services LLC
New York, NY
- --------------------------------------------------------------------------------
(1) IF SHARES ARE REGISTERED IN AN INDIVIDUAL'S NAME OR IN THE NAME OF AN
INTERMEDIARY FOR THE BENEFIT OF A NAMED PARTY, WE REPORT THESE SHARES AS
BEING BENEFICIALLY OWNED. OTHERWISE, AMERICAN CENTURY HAS NO INFORMATION
CONCERNING BENEFICIAL OWNERSHIP OF FUND SHARES.
EXHIBIT C
CURRENT AND PRO FORMA ADVISORY FEES
SHAREHOLDER FEES (fees paid directly from your investment)
Advisor Pro Forma
Class Advisor Class
-------------------------------------------------------
Maximum Sales Charge (Load) None None(1)
Imposed on Purchases
(as a percentage
of offering price)
- -------------------------------------------------------
Maximum Deferred None None(2)
Sales Charge (Load)
(as a percentage of the
lower of the original
offering price or
redemption proceeds)
- -------------------------------------------------------
Redemption/Exchange Fee None None
(as a percentage of
amount redeemed/exchanged)
- -------------------------------------------------------
Maximum Account None None
Maintenance Fee
-------------------------------------------------------
(1) It is anticipated that this class would be subject to a front-end sales
charge, but it will not apply to shares purchased in the same accounts.
(2) Investments of $1 million or more may be subject to a contingent deferred
sales charge of 1.00% if the shares are redeemed within one year of the
date of purchase.
ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from fund assets)
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
TOTAL
DISTRIBUTION AND ANNUAL FUND
MANAGEMENT SERVICE (12B-1) OTHER OPERATING
ISSUER FUND CLASS FEE FEES EXPENSES EXPENSES
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
ACCP Equity Income Advisor Class 0.73%(1) 0.50%(2) 0.00%(3) 1.23%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 0.98%(1) 0.25%(4) 0.00%(3) 1.23%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Large Company Advisor Class 0.59%(1) 0.50%(2) 0.00%(3) 1.09%
Value
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 0.84%(1) 0.25%(4) 0.00%(3) 1.09%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Mid Cap Value Advisor Class 0.75%(5) 0.50%(2) 0.00%(3) 1.25%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.00%(5) 0.25%(4) 0.00%(3) 1.25%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Real Estate Advisor Class 0.90%(1) 0.50%(2) 0.00%(3) 1.40%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.15%(1) 0.25%(4) 0.00%(3) 1.40%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Small Cap Value Advisor Class 1.00%(1) 0.50%(2) 0.00%(3) 1.50%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.25%(1) 0.25%(4) 0.00%(3) 1.50%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Value Advisor Class 0.74%(1) 0.50%(2) 0.00%(3) 1.24%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 0.99%(1) 0.25%(4) 0.00%(3) 1.24%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
ACGF Legacy Large Cap Advisor Class 0.85%(1) 0.50%(2) 0.00%(3) 1.35%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.10%(1) 0.25%(4) 0.00%(3) 1.35%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Legacy Focused Advisor Class 0.85%(1) 0.50%(2) 0.00%(3) 1.35%
Large Cap
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.10%(1) 0.25%(4) 0.00%(3) 1.35%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Legacy Multi Cap Advisor Class 0.90%(1) 0.50%(2) 0.00%(3) 1.40%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.15%(1) 0.25%(4) 0.00%(3) 1.40%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
ACMF Balanced Advisor Class 0.65%(1) 0.50%(2) 0.00%(3) 1.15%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 0.90%(1) 0.25%(4) 0.00%(3) 1.15%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Capital Value Advisor Class 0.85%(1) 0.50%(2) 0.00%(6) 1.35%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.10%(1) 0.25%(4) 0.00%(6) 1.35%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Growth Advisor Class 0.75%(1) 0.50%(2) 0.00%(3) 1.25%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.00%(1) 0.25%(4) 0.00%(3) 1.25%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Heritage Advisor Class 0.75%(5) 0.50%(2) 0.00%(3) 1.25%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.00%(1) 0.25%(4) 0.00%(3) 1.25%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Select Advisor Class 0.75%(1) 0.50%(2) 0.00%(3) 1.25%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.00%(1) 0.25%(4) 0.00%(3) 1.25%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Ultra Advisor Class 0.74%(1) 0.50%(2) 0.00%(6) 1.24%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 0.99%(1) 0.25%(4) 0.00%(3) 1.24%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Vista Advisor Class 0.75%(5) 0.50%(2) 0.00%(3) 1.25%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.00%(1) 0.25%(4) 0.00%(3) 1.25%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
ACSAA Strategic Advisor Class 0.74%(1) 0.50%(2) 0.00%(6) 1.24%
Allocation:
Conservative
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 0.99%(1) 0.25%(4) 0.00%(6) 1.24%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Strategic Advisor Class 0.80%(1) 0.50%(2) 0.00%(5) 1.30%
Allocation:
Moderate
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.05%(1) 0.25%(4) 0.00%(5) 1.30%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Strategic Advisor Class 0.93%(1) 0.50%(2) 0.00%(6) 1.43%
Allocation:
Aggressive
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.18%(1) 0.25%(4) 0.00%(6) 1.43%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
ACWMF Emerging Markets Advisor Class 1.54%(1) 0.50%(2) 0.01%(7) 2.05%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.79%(1) 0.25%(4) 0.01%(7) 2.05%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Global Growth Advisor Class 1.05%(1) 0.50%(2) 0.01%(7) 1.56%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.30%(1) 0.25%(4) 0.01%(7) 1.56%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
International Advisor Class 1.15%(1) 0.50%(2) 0.01%(8) 1.66%
Discovery
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.40%(1) 0.25%(4) 0.01%(8) 1.66%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
International Advisor Class 1.00%(1) 0.50%(2) 0.01%(8) 1.51%
Growth
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.25%(1) 0.25%(4) 0.01%(7) 1.51%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Life Sciences Advisor Class 1.10%(9) 0.50%(2) 0.01%(7) 1.61%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.35%(9) 0.25%(4) 0.01%(7) 1.61%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Technology Advisor Class 1.25%(1) 0.50%(2) 0.01%(8) 1.76%
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
Pro Forma 1.50%(1) 0.25%(4) 0.01%(8) 1.76%
Advisor Class
- ------------ ---------------- --------------- -------------- ---------------- ------------- ------------
(1) THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR ARRANGING
ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS BASED ON
ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A STEPPED
FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE GENERALLY
DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY ASSETS
DECREASE.
(2) THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES THROUGH
BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL
INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL
INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. IN
ADDITION, HALF OF THE ADVISOR CLASS 12B-1 FEE (0.25%) IS FOR ONGOING
RECORDKEEPING AND ADMINISTRATIVE SERVICES PROVIDED BY FINANCIAL
INTERMEDIARIES, WHICH WOULD OTHERWISE BE PAID BY THE ADVISOR OUT OF THE
UNIFIED MANAGEMENT FEE. THE ADVISOR HAS REDUCED ITS UNIFIED MANAGEMENT FEE
BY 0.25% FOR ADVISOR CLASS SHARES, BUT THE FEE FOR CORE INVESTMENT ADVISORY
SERVICES IS THE SAME FOR ALL CLASSES.
(3) OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE
LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR.
(4) THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES THROUGH
BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL
INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL
INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES.
(5) THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR ARRANGING
ALL SERVICES NECESSARY FOR THE FUND TO OPERATE.
(6) OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, INTEREST, AND FEES AND
EXPENSES INCURRED INDIRECTLY BY THE FUND AS A RESULT OF INVESTMENT IN
SHARES OF ONE OR MORE MUTUAL FUNDS, HEDGE FUNDS, PRIVATE EQUITY FUNDS OR
OTHER POOLED INVESTMENT VEHICLES, WERE LESS THAN 0.005% FOR THE MOST RECENT
FISCAL YEAR.
(7) OTHER EXPENSES INCLUDE THE FEES AND EXPENSES OF THE FUND'S INDEPENDENT
DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST. OTHER EXPENSES ALSO
INCLUDE FEES AND EXPENSES INCURRED INDIRECTLY BY THE FUND AS A RESULT OF
INVESTMENT IN SHARES OF ONE OR MORE MUTUAL FUNDS, HEDGE FUNDS, PRIVATE
EQUITY FUNDS OR OTHER POOLED INVESTMENT VEHICLES.
(8) OTHER EXPENSES INCLUDE THE FEES AND EXPENSES OF THE FUND'S INDEPENDENT
TRUSTEES AND ITS LEGAL COUNSEL, AS WELL AS INTEREST.
(9) THE EXPENSE INFORMATION REFLECTS THE CURRENT MANAGEMENT FEE AMOUNT, WHICH
WAS REDUCED EFFECTIVE AUGUST 1, 2006.
EXHIBIT D
INVESTMENT SUBADVISORY AGREEMENT
THIS INVESTMENT SUBADVISORY AGREEMENT ("Agreement") is made as of the 1st
day of August, 2007, by and among AMERICAN CENTURY INVESTMENT MANAGEMENT, INC.
("ACIM"), a Delaware corporation, and NORTHERN TRUST INVESTMENTS, N.A. (the
"Subadvisor"), an Illinois corporation.
WITNESSETH:
WHEREAS, ACIM is the investment advisor to the funds listed on Exhibit A
hereto (each a "Fund" and collectively the "Funds"), each of which is a series
of shares of American Century Capital Portfolios, Inc. ("ACCP") and is an
open-end management investment company registered with the Securities and
Exchange Commission under the Investment Company Act of 1940, as amended (the
"Investment Company Act"); and
WHEREAS, ACIM and the Subadvisor are both investment advisors registered
with the Securities and Exchange Commission under the Investment Advisers Act of
1940, as amended; and
WHEREAS, ACCP has engaged ACIM to serve as the investment manager for the
Funds pursuant to a Management Agreement dated August 1, 2006; and
WHEREAS, ACIM desires to engage the Subadvisor as a subadvisor for the
Funds, and the Subadvisor desires to accept such engagement; and
WHEREAS, the Boards of Directors of ACIM and the Subadvisor have determined
that it is advisable to enter into this Agreement.
NOW, THEREFORE, in consideration of the premises and of the covenants and
agreements hereinafter set forth, and intending to be legally bound hereby, the
parties hereto covenant and agree as follows:
1. INVESTMENT DESCRIPTION - APPOINTMENT. ACIM hereby appoints the
Subadvisor to provide the advisory services described herein to the Funds in
accordance with each Fund's Prospectus and Statement of Additional Information
as in effect and as amended from time to time, subject to the oversight and
direction of each Fund's Board of Directors and ACIM. ACIM will promptly provide
the Subadvisor copies of all amendments to each Fund's Prospectus and Statement
of Additional Information on an ongoing basis. In consideration for the
compensation set forth below, the Subadvisor accepts the appointment and agrees
to furnish the services described herein.
2. SERVICES AS INVESTMENT SUBADVISOR.
(a) Subject to the general supervision of each Fund's Board of Directors
and of ACIM, the Subadvisor will (i) act in conformity with each Fund's
Prospectus and Statement of Additional Information, the Investment Company Act,
the Investment Advisers Act of 1940 (the "Investment Advisers Act"), the
Internal Revenue Code (the "Code") and all other applicable federal and state
laws and regulations, as the same may from time to time be amended; (ii) make
investment decisions for each Fund in accordance with such Fund's investment
objective and policies as stated in such Fund's Prospectus and Statement of
Additional Information and with such written guidelines as ACIM may from time to
time provide to the Subadvisor; (iii) place purchase and sale orders on behalf
of the Funds; (iv) maintain books and records with respect to the securities
transactions of each Fund; and (v) furnish the Funds' Board of Directors such
periodic, regular and special reports with respect to the Funds and its services
hereunder as the Board may reasonably request or as may be required by
applicable law or regulation.
(b) In providing those services, the Subadvisor will supervise the Fund's
investments and conduct a continual program of investment, evaluation and, if
appropriate, sale and reinvestment of the Funds' assets. In addition, the
Subadvisor will furnish ACCP or ACIM whatever information, including statistical
data, ACCP or ACIM may reasonably request with respect to the instruments that
any Fund may hold or contemplate purchasing.
(c) The Subadvisor will at all times comply with the policies adopted by
the Funds' Board of Directors of which it has received written notice. Any
change to any such policies shall be approved by the Funds' Board of Directors
prior to the implementation of such change, and Subadvisor will be given
reasonable notice of the anticipated change.
(d) All cash, securities and other assets of the Funds shall be held at all
times by such entity or entities engaged by ACCP to be the custodian
(collectively, the "CUSTODIAN") in compliance with Section 17(f) of the
Investment Company Act. The Subadvisor shall not be responsible for any custody
arrangements involving any assets of the Funds or for the payment of any
custodial charges or fees, nor shall the Subadvisor have possession or custody
of any such assets. All payments, distributions and other transactions in cash,
securities or other assets in respect of the Funds shall be made directly to or
from the custodian. ACIM shall provide, or shall direct the custodian to
provide, to the Subadvisor from time to time such reports concerning assets,
receipts and disbursements with respect to the Funds as the Subadvisor may
request, including daily information on cash balances available for investment,
Fund redemption activity and market value of the securities held by the Funds.
(e) ACIM acknowledges and agrees that the Subadvisor is not the Funds'
pricing agent, and is not responsible for pricing the securities held by any
Fund, however the Subadvisor will provide reasonable assistance to the Funds'
pricing agents in valuing securities held by each Fund for which market
quotations are not readily available.
2
(f) The Subadvisor makes no representations or warranties, express or
implied, that any level of performance or investment results will be achieved by
the Funds or that the Funds will perform comparably with any standard, including
any other clients of the Subadvisor or index.
(g) The Subadvisor will not consult with any other subadvisors of the Funds
or other subadvisors to a series under common control with any Fund concerning
transactions of the Funds in securities or other assets.
(h) The Subadvisor will not advise or act for the Funds in any legal
proceedings, including bankruptcies or class actions, involving securities held
in the Funds or issues of those securities, unless otherwise agreed.
3. BROKERAGE.
(a) In executing transactions for the Funds and selecting brokers or
dealers, the Subadvisor will seek to obtain the best price and execution
available and shall execute or direct the execution of all such transactions as
permitted by law and in a manner that is consistent with its fiduciary
obligations to the Funds and its other clients. In assessing the best price and
execution available for any Fund transaction, the Subadvisor will consider all
factors it deems relevant including, but not limited to, breadth of the market
in the security, the price of the security, the financial condition and
execution capability of the broker or dealer and the reasonableness of any
commission for the specific transaction and on a continuing basis. Consistent
with this obligation, when the execution and price offered by two or more
brokers or dealers are comparable, the Subadvisor may, at its discretion,
execute transactions with brokers and dealers who provide the Funds and/or other
accounts over which the Subadvisor exercises investment discretion with research
advice and other services, but in all instances best price and execution shall
control. The Subadvisor is authorized to place purchase and sale orders for the
Funds with brokers and/or dealers subject to the supervision of ACIM and the
Board of Directors of the Funds and in accordance with the limitations set forth
in the registration statement for the Fund shares then in effect.
(b) On occasions when the Subadvisor deems the purchase or sale of a
security to be in the best interest of a Fund as well as one or more of its
other clients, the Subadvisor may to the extent permitted by applicable law, but
shall not be obligated to, aggregate the securities to be sold or purchased with
those of its other clients. In such event, allocation of the securities so
purchased or sold will be made by the Subadvisor in a manner it considers to be
equitable and consistent with its fiduciary obligations to ACCP and to such
other clients. ACIM recognizes that, in some cases, this procedure may limit the
size of the position that may be acquired or sold for a Fund.
3
4. INFORMATION PROVIDED TO ACCP.
(a) The Subadvisor will keep ACCP and ACIM informed of developments
materially affecting the Funds and will take initiative to furnish ACCP and ACIM
on at least a quarterly basis with whatever information the Subadvisor and ACIM
believe is appropriate for this purpose. Such regular quarterly reports shall
include information reasonably requested by the Funds' Board of Directors from
time to time.
(b) The Subadvisor will provide ACCP and ACIM with such investment records,
ledgers, accounting and statistical data, and other information as ACCP and ACIM
reasonably request for the preparation of registration statements, periodic and
other reports and other documents required by federal and state laws and
regulations, and particularly as may be required for the periodic review,
renewal, amendment or termination of this Agreement, and such additional
documents and information as ACCP and ACIM may reasonably request for the
management of their affairs. The Subadvisor understands that the Funds and ACIM
will rely on such information in the preparation of the Funds' registration
statements, the Funds' financial statements, and any such reports, and hereby
covenants that any such information derived from the investment records, ledgers
and accounting records maintained by the Subadvisor shall be true and complete
in all material respects.
(c) At the request of the Board of Directors, a representative of the
Subadvisor shall attend meetings of the Board of Directors to make a
presentation on each Fund's performance and such other matters as the Board of
Directors, the Subadvisor and ACIM believe is appropriate.
(d) The Subadvisor shall furnish to regulatory authorities any information
or reports in connection with such services as may be lawfully requested,
provided, however, that the Subadvisor shall not otherwise be responsible for
the preparation and filing of any other reports or statements (including,
without limitation, any tax returns or financial statements) required of the
Funds by any governmental or regulatory agency, except as expressly agreed to in
writing. The Subadvisor shall also, at ACCP's request, certify to ACCP's
independent auditors that sales or purchases aggregated with those of other
clients of the Subadvisor, as described in Section 3 above, were allocated in a
manner it considers to be equitable.
(e) In compliance with the requirements of the Investment Company Act, the
Subadvisor hereby agrees that all records that it maintains for the Funds are
the property of ACCP and further agrees to surrender to ACCP promptly upon
ACCP's written request any of such records. In addition, the Subadvisor agrees
to cooperate with ACCP and ACIM when either of them is being examined by any
regulatory authorities, and specifically agrees to promptly comply with any
request by such authorities to provide information or records. The Subadvisor
further agrees to preserve for the periods of time prescribed by the Investment
Company Act and the Investment Advisers Act the records it maintains in
accordance with Section 2(a)(iv).
4
(f) ACIM will vote each Fund's investment securities in accordance with its
proxy voting policy and procedures. The Subadvisor shall not be responsible for
any such voting.
(g) In connection with the purchase and sale of securities of the Fund, the
Subadvisor shall arrange for the transmission to ACIM and the custodian for the
Fund on a daily basis such confirmation, trade tickets and other documents as
may be reasonably necessary to enable them to perform their administrative
responsibilities with respect to the Fund's investment portfolio. With respect
to portfolio securities to be purchased or sold through the Depository Trust
Company, the Subadvisor shall arrange for the automatic transmission of the I.D.
confirmation of the trade to the custodian of the Fund. The Subadvisor will be
responsible for providing portfolio trades to the Fund's accounting agent for
inclusion in the daily calculation of the Fund's NAV in a manner, and in
accordance with such time requirements as ACIM and the Subadvisor shall agree
on. In the event trade data is not delivered by the Subadvisor in accordance
with such requirements and the Subadvisor's failure causes an error that is
material to the Fund, the subadvisor shall reimburse the Fund pursuant to ACIM's
NAV Error Policy.
5. CONFIDENTIALITY. The parties to this Agreement agree that each shall
treat as confidential in accordance with its policies and procedures to protect
similar confidential information, and with applicable law, all information
provided by a party to the others regarding such party's business and
operations, including without limitation the investment activities, holdings, or
identities of shareholders of the Funds. All confidential information provided
by a party hereto shall be used by any other parties hereto solely for the
purposes of rendering services pursuant to this Agreement and, except as may be
required in carrying out the terms of this Agreement, shall not be disclosed to
any third party without the prior consent of such providing party. The foregoing
shall not be applicable to any information that is publicly available when
provided or which thereafter becomes publicly available other than in
contravention of this paragraph. The foregoing also shall not apply to any
information which is required to be disclosed by any regulatory authority in the
lawful and appropriate exercise of its jurisdiction over a party, by any auditor
of the parties hereto, by judicial or administrative process or otherwise by
applicable law or regulation; provided, however, that the disclosing party shall
provide reasonable notice to the other parties hereto prior to any such
disclosure.
6. COMPENSATION.
(a) In consideration of the services rendered pursuant to this Agreement,
ACIM will pay the Subadvisor a management fee, payable monthly in arrears on the
first business day of each month. The fee for the each month shall equal the sum
of the product of the "Applicable Fee" for each Fund as set forth on Exhibit A
attached hereto, times the net assets of such Fund on that day, and further
dividing that product by 365 (366 for leap years), for each calendar day in such
month.
(b) In the event that the Board of Directors of ACCP shall determine to
issue any additional series of shares for which it is proposed that the
Subadvisor serve as investment manager, and for which the Subadvisor desires to
so serve, ACIM and the Subadvisor shall
5
amend Exhibit A to this Agreement setting forth the name of the series, the
Applicable Fee and such other terms and conditions as are applicable to the
management of such series of shares.
(c) The Subadvisor shall have no right to obtain compensation directly from
any Fund or ACCP for services provided hereunder and agrees to look solely to
ACIM for payment of fees due. Upon termination of this Agreement before the end
of a month, or in the event the Agreement begins after the beginning of the
month, the fee for that month shall be prorated according to the proportion that
such period bears to the full monthly period and shall be payable upon the date
of termination of this Agreement.
7. EXPENSES. ACIM, ACCP, and the Funds shall assume and pay their
respective organizational, operational and business expenses not specifically
assumed or agreed to be paid by the Subadvisor pursuant to this Agreement. The
Subadvisor shall pay its own organizational, operational and business expenses
but shall not be obligated to pay any expenses of ACIM, ACCP, and the Funds,
including, without limitation: (a) brokerage fees or commissions in connection
with the execution of securities transactions, (b) taxes and interest; and (c)
custodian fees and expenses.
8. SERVICES TO OTHER COMPANIES OR ACCOUNTS. ACIM understands that the
Subadvisor or its affiliates may act as investment advisor to other clients and
ACIM has no objection to the Subadvisor so acting. In addition, ACIM understands
that the persons employed by the Subadvisor to assist in the performance of the
Subadvisor's duties hereunder will not devote their full time to such service
and nothing contained herein shall be deemed to limit or restrict the right of
the Subadvisor or any affiliate of the Subadvisor to engage in and devote time
and attention to other business or to render services of whatever kind or
nature.
9. TERM AND TERMINATION OF AGREEMENT.
(a) This Agreement shall become effective as of the date first written
above and shall continue until July 31, 2009, and shall continue thereafter so
long as such continuance is specifically approved at least annually by (i) the
Board of Directors of ACCP or (ii) a vote of a majority of the Fund's
outstanding voting securities, provided that in either event the continuance is
also approved by a majority of the Board of Directors who are not interested
persons (as defined in the Investment Company Act) of any party to this
Agreement, by a vote cast at a meeting called for the purpose of voting on such
approval. The annual approvals provided for herein shall be effective to
continue this Agreement from year to year if given within a period beginning not
more than ninety (90) days prior to July 31 of each applicable year,
notwithstanding the fact that more than three hundred sixty-five (365) days may
have elapsed since the date on which such approval was last given.
(b) This Agreement is terminable without penalty as to any Fund on 60 days'
written notice by (i) the Board of Directors of ACCP, (ii) by vote of holders of
a majority of a Fund's shares, (iii) by ACIM, or (iv) by the Subadvisor, and
will terminate automatically upon any termination of the investment management
agreement between ACCP and ACIM. This
6
Agreement will terminate automatically in the event of its assignment. The
Subadvisor agrees to notify ACIM of any circumstances that might result in this
Agreement being deemed to be assigned.
10. REPRESENTATIONS.
(a) ACIM and the Subadvisor each represents that it is registered as an
investment advisor under the Investment Advisers Act, that it will use its
reasonable best efforts to maintain such registration, and that it will promptly
notify the other if it ceases to be so registered, if its registration is
suspended for any reason, or if it is notified by any regulatory organization or
court of competent jurisdiction that it should show cause why its registration
should not be suspended or terminated. ACIM and the Subadvisor each further
represents that it is registered under the laws of all jurisdictions in which
the conduct of its business hereunder requires such registration.
(b) ACIM represents and warrants that (i) the appointment of the Subadvisor
has been duly authorized; (ii) it has full power and authority to execute and
deliver this Agreement and to perform the services contemplated hereunder, and
such execution, delivery and performance will not cause it to be in violation of
its Articles of Incorporation, Bylaws, or any material laws; and (iii) it has
received a copy of Part II of the Subadvisor's Form ADV no less than 48 hours
prior to entering into this Agreement.
(c) The Subadvisor represents and warrants that (i) its service as
subadvisor hereunder has been duly authorized; (ii) it has full power and
authority to execute and deliver this Agreement and to perform the services
contemplated hereunder, and such execution, delivery and performance will not
cause it to be in violation of its organizational documents, its Bylaws or
material laws; (iii) it will at all times in the performance of its duties
hereunder comply in all material respects with the provisions of the Investment
Company Act, the Investment Advisers Act, the Code and all other applicable
federal and state laws and regulations, as the same may be amended from time to
time; and (iv) it has all controls necessary to perform its obligations under
and comply with the representations and warranties it made in this Agreement.
11. AMENDMENT OF THIS AGREEMENT. No provision of this Agreement may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against which enforcement of the change, waiver,
discharge or termination is sought.
12. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the parties hereto on the subject matter described herein.
13. INDEPENDENT CONTRACTOR. In the performance of its duties hereunder, the
Subadvisor is and shall be an independent contractor and, unless otherwise
expressly provided or authorized, shall have no authority to act for or
represent ACCP or ACIM in any way, or otherwise be deemed to be an agent of ACCP
or ACIM.
7
14. SEVERABILITY. If any provision of this Agreement shall be held or made
invalid by a court decision, statue, rule or similar authority, the remainder of
this Agreement shall not be affected thereby.
15. NOTICES. All notices and other communications hereunder shall be given
or made in writing and shall be delivered personally, or sent by telex,
telecopy, express delivery or registered or certified mail, postage prepaid,
return receipt requested, to the party or parties to whom they are directed at
the following addresses, or at such other addresses as may be designated by
notice from such party to all other parties.
To the Subadvisor:
The Northern Trust Company
50 South LaSalle Street, M-9
Chicago, Illinois 60675
Attention: Legal Department
To ACIM:
American Century Investments
4500 Main Street
Kansas City, Missouri 64111
Attention: General Counsel
Any notice, demand or other communication given in a manner prescribed in this
Section shall be deemed to have been delivered on receipt.
16. DISCLOSURE. ACIM shall not, without the prior written consent of the
Subadvisor, make representations regarding or reference the Subadvisor or any
affiliates in any disclosure document, advertisement, sales literature or other
promotional materials; PROVIDED, HOWEVER, the Subadvisor need not review or
consent to any reference to its name only or any language that it has previously
approved for use in another document.
17. LIABILITY OF SUBADVISOR.
(a) The Subadvisor shall not be liable for any loss due solely to a mistake
of investment judgment, but shall be liable for any loss which is incurred by
reason of an act or omission of its employee, partner, director or affiliate, if
such act or omission involves willful misfeasance, bad faith or gross
negligence, or breach of its duties or obligations hereunder, whether express or
implied. Nothing in this paragraph shall be deemed a limitation or waiver of any
obligation or duty that may not by law be limited or waived.
(b) The Subadvisor shall not be liable for any failure, delay or
interruption in the performance of its obligations hereunder if such failure,
delay or interruption results from the
8
occurrence of any acts, events or circumstances beyond the Subadvisor's
reasonable control, and the Subadvisor shall have no responsibility of any kind
for any loss or damage thereby incurred or suffered by ACIM or ACCP. In such
case, the terms of this Agreement shall continue in full force and effect and
the Subadvisor obligations shall be performed or carried out as soon as legally
and practicably possible after the cessation of such acts, events or
circumstances.
9
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their officers designated below on the day and year first written
above.
AMERICAN CENTURY INVESTMENT
MANAGEMENT, INC.
By:
-------------------------------------
Name:
-----------------------------------
Title:
-----------------------------------
NORTHERN TRUST INVESTMENTS, N.A.
By:
-------------------------------------
Name:
-----------------------------------
Title:
-----------------------------------
EXHIBIT A TO
INVESTMENT SUBADVISORY AGREEMENT
FUNDS AND APPLICABLE FEES
FUND APPLICABLE FEE
---- --------------
American Century Equity Index Fund 0.02% of the first $500,000,000
0.01% on all assets over $500,000,000
- ------------------------------------------ ------------------------------------- -------------------------------------------
TO VOTE BY TELEPHONE | TO VOTE BY INTERNET | TO VOTE BY MAIL
1) Read the Proxy Statement and have the | 1) Read the Proxy Statement and have| 1) Read the Proxy Statement
proxy card below at hand. | the proxy card below at hand. | 2) Check the appropriate boxes on the proxy
2) Call toll-free 1-888-________ | 2) Log on to www.proxyweb.com | card on the reverse side.
3) Follow the simple instructions. | 3) Follow the simple instructions. | 3) Sign and date the proxy Card.
| | 4) Return the proxy card in the envelope
| | provided.
- ------------------------------------------ ------------------------------------- -------------------------------------------
AMERICAN CENTURY ____________.
PROXY FOR SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON JUNE 27, 2007
KNOW ALL PERSONS BY THESE PRESENTS that the undersigned shareholder of
_____________. (the "Corporation"), hereby appoints each of Charles A.
Etherington, David H. Reinmiller, Brian L. Brogan, Otis H. Cowan and Janet A.
Nash, collectively or individually, as his or her attorney-in-fact and proxy,
with the power of substitution of each, to vote and act with respect to all
shares of the Issuer, which the undersigned is entitled to vote at the Special
Meeting of Shareholders (the "Meeting") to be held on June 27, 2007 at the
principal executive offices of the Corporation at 4500 Main Street, Kansas City,
Missouri 64111, at 10:00 a.m. Central Time, and at any adjournment thereof.
The attorneys named will vote the shares represented by this proxy in accordance
with the choices made on this ballot. Discretionary authority is hereby
conferred as to all other matters as may properly come before the Meeting or any
adjournment thereof.
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF THE CORPORATION.
THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED BY THE
UNDERSIGNED SHAREHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED "FOR"
THE PROPOSAL.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
| | Please complete, sign and return this card
| | as soon as possible.
| |
| |
| |
| |
| | --------------------------------------------------------
| | Signature(s) and Title(s), if applicable Date
| |
| | Please sign this proxy exactly as your name appears
| | on the books of the Corporation. Joint owners
| | should each sign personally. Trustees and other
| | fiduciaries should indicate the capacity in which
| | they sign, and where more than one name appears, a
| | majority must sign. If a corporation, this signature
| | should be that of an authorized officer who should
|_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ | state his or her title.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
FOLD HERE
After careful consideration, the Board of Directors of the Corporation
unanimously approved the proposal listed below and recommended that shareholders
vote "for" the proposal.
PLEASE MARK YOUR VOTE BELOW IN BLUE OR BLACK INK OR NUMBER 2 PENCIL. PLEASE DO
NOT USE FINE POINT PENS.
FOR AGAINST ABSTAIN
1. To elect James E. Stowers, Jonathan S. Thomas, Thomas A. Brown, Andrea C. | | | | | |
Hall, James A. Olson, Donald H. Pratt, Gale E. Sayers, M. Jeannine
Strandjord, and Timothy S. Webster to the Board of Directors of American
Century ______.
YOUR VOTE IS IMPORTANT. PLEASE COMPLETE, SIGN AND RETURN THIS CARD AS SOON AS
POSSIBLE.
- ------------------------------------------ ------------------------------------- -------------------------------------------
TO VOTE BY TELEPHONE | TO VOTE BY INTERNET | TO VOTE BY MAIL
1) Read the Proxy Statement and have the | 1) Read the Proxy Statement and have| 1) Read the Proxy Statement
proxy card below at hand. | the proxy card below at hand. | 2) Check the appropriate boxes on the proxy
2) Call toll-free 1-888-________ | 2) Log on to www.proxyweb.com | card on the reverse side.
3) Follow the simple instructions. | 3) Follow the simple instructions. | 3) Sign and date the proxy Card.
| | 4) Return the proxy card in the envelope
| | provided.
- ------------------------------------------ ------------------------------------- -------------------------------------------
AMERICAN CENTURY ____________.
AMERICAN CENTURY ______ FUND
PROXY FOR SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON JUNE 27, 2007
KNOW ALL PERSONS BY THESE PRESENTS that the undersigned shareholder of American
Century ________ Fund (the "Fund"), a series of American Century ___________
(the "Corporation"), hereby appoints each of Charles A. Etherington, David H.
Reinmiller, Brian L. Brogan, Otis H. Cowan and Janet A. Nash, collectively or
individually, as his or her attorney-in-fact and proxy, with the power of
substitution of each, to vote and act with respect to all shares of the Fund,
which the undersigned is entitled to vote at the Special Meeting of Shareholders
(the "Meeting") to be held on June 27, 2007 at the principal executive offices
of the Corporation at 4500 Main Street, Kansas City, Missouri 64111, at 10:00
a.m. Central Time, and at any adjournment thereof.
The attorneys named will vote the shares represented by this proxy in accordance
with the choices made on this ballot. Discretionary authority is hereby
conferred as to all other matters as may properly come before the Meeting or any
adjournment thereof.
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF THE CORPORATION.
THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED BY THE
UNDERSIGNED SHAREHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED "FOR"
THE PROPOSAL.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
| | Please complete, sign and return this card
| | as soon as possible.
| |
| |
| |
| |
| | --------------------------------------------------------
| | Signature(s) and Title(s), if applicable Date
| |
| | Please sign this proxy exactly as your name appears
| | on the books of the Corporation. Joint owners
| | should each sign personally. Trustees and other
| | fiduciaries should indicate the capacity in which
| | they sign, and where more than one name appears, a
| | majority must sign. If a corporation, this signature
| | should be that of an authorized officer who should
|_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ | state his or her title.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
FOLD HERE
After careful consideration, the Board of Directors of the Corporation
unanimously approved the proposal listed below and recommended that shareholders
vote "for" the proposals.
PLEASE MARK YOUR VOTE BELOW IN BLUE OR BLACK INK OR NUMBER 2 PENCIL. PLEASE DO
NOT USE FINE POINT PENS.
FOR AGAINST ABSTAIN
1. To elect James E. Stowers, Jonathan S. Thomas, Thomas A. Brown, Andrea C.
Hall, James A. Olson, Donald H. Pratt, Gale E. Sayers, M. Jeannine | | | | | |
Strandjord, and Timothy S. Webster to the Board of Directors of American
Century ______.
FOR AGAINST ABSTAIN
2. To approve a change in the unified management fee of the Advisor Class of
American Century _______ Fund. | | | | | |
YOUR VOTE IS IMPORTANT. PLEASE COMPLETE, SIGN AND RETURN THIS CARD AS SOON AS
POSSIBLE.
- ------------------------------------------ ------------------------------------- -------------------------------------------
TO VOTE BY TELEPHONE | TO VOTE BY INTERNET | TO VOTE BY MAIL
1) Read the Proxy Statement and have the | 1) Read the Proxy Statement and have| 1) Read the Proxy Statement
proxy card below at hand. | the proxy card below at hand. | 2) Check the appropriate boxes on the proxy
2) Call toll-free 1-888-________ | 2) Log on to www.proxyweb.com | card on the reverse side.
3) Follow the simple instructions. | 3) Follow the simple instructions. | 3) Sign and date the proxy Card.
| | 4) Return the proxy card in the envelope
| | provided.
- ------------------------------------------ ------------------------------------- -------------------------------------------
AMERICAN CENTURY CAPITAL PORTFOLIOS, INC.
AMERICAN CENTURY REAL ESTATE FUND
PROXY FOR SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON JUNE 27, 2007
KNOW ALL PERSONS BY THESE PRESENTS that the undersigned shareholder of American
Century Real Estate Fund (the "Fund"), a series of American Century Capital
Portfolios, Inc. (the "Corporation"), hereby appoints each of Charles A.
Etherington, David H. Reinmiller, Brian L. Brogan, Otis H. Cowan and Janet A.
Nash, collectively or individually, as his or her attorney-in-fact and proxy,
with the power of substitution of each, to vote and act with respect to all
shares of the Fund, which the undersigned is entitled to vote at the Special
Meeting of Shareholders (the "Meeting") to be held on June 27, 2007 at the
principal executive offices of the Corporation at 4500 Main Street, Kansas City,
Missouri 64111, at 10:00 a.m. Central Time, and at any adjournment thereof.
The attorneys named will vote the shares represented by this proxy in accordance
with the choices made on this ballot. Discretionary authority is hereby
conferred as to all other matters as may properly come before the Meeting or any
adjournment thereof.
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF THE CORPORATION.
THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED BY THE
UNDERSIGNED SHAREHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED "FOR"
THE PROPOSAL.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
| | Please complete, sign and return this card
| | as soon as possible.
| |
| |
| |
| |
| | --------------------------------------------------------
| | Signature(s) and Title(s), if applicable Date
| |
| | Please sign this proxy exactly as your name appears
| | on the books of the Corporation. Joint owners
| | should each sign personally. Trustees and other
| | fiduciaries should indicate the capacity in which
| | they sign, and where more than one name appears, a
| | majority must sign. If a corporation, this signature
| | should be that of an authorized officer who should
|_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ | state his or her title.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
FOLD HERE
After careful consideration, the Board of Directors of the Corporation
unanimously approved the proposal listed below and recommended that shareholders
vote "for" the proposals.
PLEASE MARK YOUR VOTE BELOW IN BLUE OR BLACK INK OR NUMBER 2 PENCIL. PLEASE DO
NOT USE FINE POINT PENS.
FOR AGAINST ABSTAIN
1. To elect James E. Stowers, Jonathan S. Thomas, Thomas A. Brown, Andrea C.
Hall, James A. Olson, Donald H. Pratt, Gale E. Sayers, M. Jeannine | | | | | |
Strandjord, and Timothy S. Webster to the Board of Directors of American
Century Capital Portfolios, Inc.
FOR AGAINST ABSTAIN
2. To approve a change in the unified management fee of the Advisor Class of
American Century Real Estate Fund. | | | | | |
FOR AGAINST ABSTAIN
3. To approve an amendment to the investment objective of American Century
Real Estate Fund. | | | | | |
YOUR VOTE IS IMPORTANT. PLEASE COMPLETE, SIGN AND RETURN THIS CARD AS SOON AS
POSSIBLE.
- ------------------------------------------ ------------------------------------- -------------------------------------------
TO VOTE BY TELEPHONE | TO VOTE BY INTERNET | TO VOTE BY MAIL
1) Read the Proxy Statement and have the | 1) Read the Proxy Statement and have| 1) Read the Proxy Statement
proxy card below at hand. | the proxy card below at hand. | 2) Check the appropriate boxes on the proxy
2) Call toll-free 1-888-________ | 2) Log on to www.proxyweb.com | card on the reverse side.
3) Follow the simple instructions. | 3) Follow the simple instructions. | 3) Sign and date the proxy Card.
| | 4) Return the proxy card in the envelope
| | provided.
- ------------------------------------------ ------------------------------------- -------------------------------------------
AMERICAN CENTURY CAPITAL PORTFOLIOS, INC.
AMERICAN CENTURY EQUITY INDEX FUND
PROXY FOR SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON JUNE 27, 2007
KNOW ALL PERSONS BY THESE PRESENTS that the undersigned shareholder of American
Century Equity Index Fund (the "Fund"), a series of American Century Capital
Portfolios, Inc. (the "Corporation"), hereby appoints each of Charles A.
Etherington, David H. Reinmiller, Brian L. Brogan, Otis H. Cowan and Janet A.
Nash, collectively or individually, as his or her attorney-in-fact and proxy,
with the power of substitution of each, to vote and act with respect to all
shares of the Fund, which the undersigned is entitled to vote at the Special
Meeting of Shareholders (the "Meeting") to be held on June 27, 2007 at the
principal executive offices of the Corporation at 4500 Main Street, Kansas City,
Missouri 64111, at 10:00 a.m. Central Time, and at any adjournment thereof.
The attorneys named will vote the shares represented by this proxy in accordance
with the choices made on this ballot. Discretionary authority is hereby
conferred as to all other matters as may properly come before the Meeting or any
adjournment thereof.
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF THE CORPORATION.
THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED BY THE
UNDERSIGNED SHAREHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED "FOR"
THE PROPOSAL.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
| | Please complete, sign and return this card
| | as soon as possible.
| |
| |
| |
| |
| | --------------------------------------------------------
| | Signature(s) and Title(s), if applicable Date
| |
| | Please sign this proxy exactly as your name appears
| | on the books of the Corporation. Joint owners
| | should each sign personally. Trustees and other
| | fiduciaries should indicate the capacity in which
| | they sign, and where more than one name appears, a
| | majority must sign. If a corporation, this signature
| | should be that of an authorized officer who should
|_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ | state his or her title.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
FOLD HERE
After careful consideration, the Board of Directors of the Corporation
unanimously approved the proposal listed below and recommended that shareholders
vote "for" the proposals.
PLEASE MARK YOUR VOTE BELOW IN BLUE OR BLACK INK OR NUMBER 2 PENCIL. PLEASE DO
NOT USE FINE POINT PENS.
FOR AGAINST ABSTAIN
1. To elect James E. Stowers, Jonathan S. Thomas, Thomas A. Brown, Andrea C.
Hall, James A. Olson, Donald H. Pratt, Gale E. Sayers, M. Jeannine | | | | | |
Strandjord, and Timothy S. Webster to the Board of Directors of American
Century Capital Portfolios, Inc.
FOR AGAINST ABSTAIN
2. To approve a new subadvisory agreement between Northern Trust Investments,
N.A. and American Century Investment Management, Inc., pertaining to | | | | | |
the management of American Century Equity Index Fund.
YOUR VOTE IS IMPORTANT. PLEASE COMPLETE, SIGN AND RETURN THIS CARD AS SOON AS
POSSIBLE.