UNITED STATES | ||
SECURITIES AND EXCHANGE COMMISSION | ||
Washington, D.C. 20549 | ||
FORM N-CSR | ||
CERTIFIED SHAREHOLDER REPORT OF REGISTERED | ||
MANAGEMENT INVESTMENT COMPANIES | ||
Investment Company Act file number | 811-21591 | |
AMERICAN CENTURY ASSET ALLOCATION PORTFOLIOS, INC. | ||
(Exact name of registrant as specified in charter) | ||
4500 MAIN STREET, KANSAS CITY, MISSOURI | 64111 | |
(Address of principal executive offices) | (Zip Code) | |
CHARLES A. ETHERINGTON | ||
4500 MAIN STREET, KANSAS CITY, MISSOURI 64111 | ||
(Name and address of agent for service) | ||
Registrant’s telephone number, including area code: | 816-531-5575 | |
Date of fiscal year end: | 07-31 | |
Date of reporting period: | 01-31-2010 |
ITEM 1. REPORTS TO STOCKHOLDERS.
Semiannual Report | January 31, 2010 |
LIVESTRONG® Portfolios from | |
American Century Investments® |
LIVESTRONG® Income Portfolio
LIVESTRONG® 2015 Portfolio
LIVESTRONG® 2020 Portfolio
LIVESTRONG® 2025 Portfolio
LIVESTRONG® 2030 Portfolio
LIVESTRONG® 2035 Portfolio
LIVESTRONG® 2040 Portfolio
LIVESTRONG® 2045 Portfolio
LIVESTRONG® 2050 Portfolio
Table of Contents |
President’s Letter | 2 |
Independent Chairman’s Letter | 3 |
LIVESTRONG® Portfolios from American Century Investments | |
Performance | 4 |
Portfolio Commentary | 15 |
Market Index Total Returns | 16 |
Underlying Fund Allocations | 17 |
Shareholder Fee Examples | 20 |
Financial Statements | |
Schedule of Investments | 26 |
Statement of Assets and Liabilities | 31 |
Statement of Operations | 34 |
Statement of Changes in Net Assets | 37 |
Notes to Financial Statements | 42 |
Financial Highlights | 63 |
Other Information | |
Additional Information | 99 |
Index Definitions | 100 |
American Century Investment Services, Inc., has entered into an agreement with the Lance Armstrong Foundation for rights to use the LIVESTRONG name. LIVESTRONG is a trademark of the Lance Armstrong Foundation. For more information about the foundation, visit www.livestrong.org.
The opinions expressed in the Portfolio Commentary reflect those of the portfolio management team as of the date of the report, and do not necessarily represent the opinions of American Century Investments or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securit ies is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67772x4x1.jpg)
Dear Investor:
Thank you for taking time to review the following pages, which provide investment performance and portfolio information for the financial reporting period ended January 31, 2010, along with the perspective and commentary of our experienced portfolio management team. We appreciate your trust in American Century Investments at this volatile, transitional time in the economy and investment markets.
As the upheavals associated with the “Great Recession” gradually subside, our senior management team has put considerable thought into how the investment environment has changed and what challenges and opportunities await us. Critical factors that we are anticipating in 2010 include marked shifts in investment and spending behavior compared with the past decade, along with consolidation in our industry.
Most importantly, we think the U.S. economic recovery will be slow and extended. The economy and capital markets have come a long way since Lehman Brothers collapsed in the third quarter of 2008, but 2010 will likely bring continuing challenges. The U.S. stock market’s rebound since last March and the second-half economic surge in 2009 were fueled largely by corporate cost-cutting and unprecedented monetary and fiscal stimulus, including some key programs that have since expired or been scaled back.
Meanwhile, the resilient but struggling consumer sector still faces high unemployment, heavy debt burdens, tight credit conditions, and a housing market that is starting to stabilize, but remains vulnerable. Much of our investment positioning in 2009 cautiously reflected these still unstable economic fundamentals, leading to underperformance, in some cases, versus market benchmarks buoyed by the rally of riskier assets. We still support our fundamentally based positioning because we believe strongly that some markets—driven more by technical factors than fundamentals—have advanced further than underlying economic conditions warrant, and remain susceptible to the possibility of more volatility ahead.
Thank you for your continued confidence in us.
Sincerely,
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67772x4x2.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Independent Chairman’s Letter |
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67772x5x1.jpg)
In my first letter to shareholders of the American Century Investments funds, I invited you to contact me with your questions. I have been gratified with your response. Most shareholder inquiries to date have related to specific fund performance issues. As I noted in my individual responses, your board through the Fund Performance Committee continues to stress improved performance in our quarterly meetings with chief investment officers and fund managers.
An important part of our fund performance review process is a face-to-face meeting with portfolio managers. The board traveled to the American Century Investments office in Mountain View, California to meet with the fund of funds and asset allocation portfolio management teams. These meetings validated the importance of thorough reviews of investment opportunities by the credit management personnel resident in that office. As a result of their efforts, American Century Investments funds were able to avoid the “toxic assets” that plagued many other fund families in 2008.
From April through June 2009, the board conducted its annual review of the advisory contracts between American Century Investments and each fund. Our efforts involved a review of fund information, including assets under management; total expense ratio compared to peers; economies of scale; fee breakpoints that reduce shareholder costs as assets increase; performance compared to peers and benchmarks; and the quality of services provided to fund shareholders. A detailed discussion of board considerations in connection with advisory contract renewal is included annually in each fund’s shareholder reports. During this review, the board focuses on a detailed comparison of the competitive position of each fund and has negotiated more than 60 breakpoints or fee reductions in the past five years.
The board looks forward to another year of work on your behalf and your comments are appreciated. You are invited to email me at dhpratt@fundboardchair.com.
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67772x5x2.jpg)
3
Performance |
LIVESTRONG Portfolios | |||||||
Total Returns as of January 31, 2010 | |||||||
Average Annual Returns | |||||||
Ticker | Since | Inception | |||||
Symbol | 6 months(1) | 1 year | 5 years | Inception | Date | ||
LIVESTRONG Income Portfolio | |||||||
Investor Class | ARTOX | 6.08% | 19.50% | 3.09% | 3.78% | 8/31/04 | |
Russell 3000 Index(2) | — | 10.16% | 35.05% | 0.57% | 2.12% | — | |
Barclays Capital U.S. | |||||||
Aggregate Bond Index(3) | — | 3.87% | 8.51% | 5.16% | 5.11% | — | |
Citigroup US Broad | |||||||
Investment-Grade Bond Index | — | 3.64% | 7.54% | 5.40% | 5.34% | — | |
Institutional Class | ATTIX | 6.19% | 19.74% | 3.30% | 3.99% | 8/31/04 | |
Advisor Class | ARTAX | 5.94% | 19.20% | 2.84% | 3.53% | 8/31/04 | |
R Class | ARSRX | 5.81% | 18.93% | 2.57% | 3.25% | 8/31/04 | |
LIVESTRONG 2015 Portfolio | |||||||
Investor Class | ARFIX | 6.56% | 21.59% | 3.41% | 4.40% | 8/31/04 | |
Russell 3000 Index(2) | — | 10.16% | 35.05% | 0.57% | 2.12% | — | |
Barclays Capital U.S. | |||||||
Aggregate Bond Index(3) | — | 3.87% | 8.51% | 5.16% | 5.11% | — | |
Citigroup US Broad | |||||||
Investment-Grade Bond Index | — | 3.64% | 7.54% | 5.40% | 5.34% | — | |
Institutional Class | ARNIX | 6.66% | 21.81% | 3.64% | 4.62% | 8/31/04 | |
Advisor Class | ARFAX | 6.40% | 21.29% | 3.18% | 4.15% | 8/31/04 | |
R Class | ARFRX | 6.35% | 20.98% | 2.92% | 3.89% | 8/31/04 | |
(1) | Total returns for periods less than one year are not annualized. | ||||||
(2) | Data provided by Lipper Inc. — A Reuters Company. © 2010 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper | ||||||
content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be | |||||||
liable for any errors or delays in the content, or for any actions taken in reliance thereon. | |||||||
The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be | |||||||
reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or | |||||||
sell any of the securities herein is being made by Lipper. | |||||||
(3) | In January 2010, the fund’s fixed-income benchmark changed from the Citigroup US Broad Investment-Grade Bond Index to the Barclays Capital | ||||||
U.S. Aggregate Bond Index. This reflects a change in the portfolio management analytics software used by American Century Investments’ fixed- | |||||||
income teams. The investment process is unchanged. |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays Capital U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for the LIVESTRONG Portfolio’s asset allocations as of January 31, 2010.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of LIVESTRONG Portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each LIVESTRONG Portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. As interest rates rise, bond values will decline.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
4
LIVESTRONG Portfolios | |||||||
Total Returns as of January 31, 2010 | |||||||
Average Annual Returns | |||||||
Ticker | Since | Inception | |||||
Symbol | 6 months(1) | 1 year | 5 years | Inception | Date | ||
LIVESTRONG 2020 Portfolio | |||||||
Investor Class | ARBVX | 7.01% | 23.48% | — | -4.84% | 5/30/08 | |
Russell 3000 Index(2) | — | 10.16% | 35.05% | — | -12.51% | — | |
Barclays Capital U.S. | |||||||
Aggregate Bond Index(3) | — | 3.87% | 8.51% | — | 6.94% | — | |
Citigroup US Broad | |||||||
Investment-Grade Bond Index | — | 3.64% | 7.54% | — | 7.40% | — | |
Institutional Class | ARBSX | 6.97% | 23.59% | — | -4.73% | 5/30/08 | |
Advisor Class | ARBMX | 6.87% | 23.03% | — | -5.13% | 5/30/08 | |
R Class | ARBRX | 6.73% | 22.73% | — | -5.36% | 5/30/08 | |
LIVESTRONG 2025 Portfolio | |||||||
Investor Class | ARWIX | 7.19% | 24.69% | 3.25% | 4.47% | 8/31/04 | |
Russell 3000 Index(2) | — | 10.16% | 35.05% | 0.57% | 2.12% | — | |
Barclays Capital U.S. | |||||||
Aggregate Bond Index(3) | — | 3.87% | 8.51% | 5.16% | 5.11% | — | |
Citigroup US Broad | |||||||
Investment-Grade Bond Index | — | 3.64% | 7.54% | 5.40% | 5.34% | — | |
Institutional Class | ARWFX | 7.29% | 24.94% | 3.45% | 4.67% | 8/31/04 | |
Advisor Class | ARWAX | 7.14% | 24.38% | 2.99% | 4.21% | 8/31/04 | |
R Class | ARWRX | 6.98% | 24.22% | 2.75% | 3.96% | 8/31/04 | |
(1) | Total returns for periods less than one year are not annualized. | ||||||
(2) | Data provided by Lipper Inc. — A Reuters Company. © 2010 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper | ||||||
content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be | |||||||
liable for any errors or delays in the content, or for any actions taken in reliance thereon. | |||||||
The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be | |||||||
reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or | |||||||
sell any of the securities herein is being made by Lipper. | |||||||
(3) | In January 2010, the fund’s fixed-income benchmark changed from the Citigroup US Broad Investment-Grade Bond Index to the Barclays Capital | ||||||
U.S. Aggregate Bond Index. This reflects a change in the portfolio management analytics software used by American Century Investments’ fixed- | |||||||
income teams. The investment process is unchanged. |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays Capital U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for the LIVESTRONG Portfolio’s asset allocations as of January 31, 2010.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of LIVESTRONG Portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each LIVESTRONG Portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. As interest rates rise, bond values will decline.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
5
LIVESTRONG Portfolios | |||||||
Total Returns as of January 31, 2010 | |||||||
Average Annual Returns | |||||||
Ticker | Since | Inception | |||||
Symbol | 6 months(1) | 1 year | 5 years | Inception | Date | ||
LIVESTRONG 2030 Portfolio | |||||||
Investor Class | ARCVX | 7.73% | 26.44% | — | -7.54% | 5/30/08 | |
Russell 3000 Index(2) | — | 10.16% | 35.05% | — | -12.51% | — | |
Barclays Capital U.S. | |||||||
Aggregate Bond Index(3) | — | 3.87% | 8.51% | — | 6.94% | — | |
Citigroup US Broad | |||||||
Investment-Grade Bond Index | — | 3.64% | 7.54% | — | 7.40% | — | |
Institutional Class | ARCSX | 7.81% | 26.88% | — | -7.37% | 5/30/08 | |
Advisor Class | ARCMX | 7.47% | 26.16% | — | -7.82% | 5/30/08 | |
R Class | ARCRX | 7.33% | 25.85% | — | -8.04% | 5/30/08 | |
LIVESTRONG 2035 Portfolio | |||||||
Investor Class | ARYIX | 8.07% | 28.21% | 2.83% | 4.31% | 8/31/04 | |
Russell 3000 Index(2) | — | 10.16% | 35.05% | 0.57% | 2.12% | — | |
Barclays Capital U.S. | |||||||
Aggregate Bond Index(3) | — | 3.87% | 8.51% | 5.16% | 5.11% | — | |
Citigroup US Broad | |||||||
Investment-Grade Bond Index | — | 3.64% | 7.54% | 5.40% | 5.34% | — | |
Institutional Class | ARLIX | 8.17% | 28.59% | 3.03% | 4.53% | 8/31/04 | |
Advisor Class | ARYAX | 7.91% | 27.89% | 2.57% | 4.05% | 8/31/04 | |
R Class | ARYRX | 7.75% | 27.57% | 2.31% | 3.80% | 8/31/04 | |
(1) | Total returns for periods less than one year are not annualized. | ||||||
(2) | Data provided by Lipper Inc. — A Reuters Company. © 2010 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper | ||||||
content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be | |||||||
liable for any errors or delays in the content, or for any actions taken in reliance thereon. | |||||||
The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be | |||||||
reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or | |||||||
sell any of the securities herein is being made by Lipper. | |||||||
(3) | In January 2010, the fund’s fixed-income benchmark changed from the Citigroup US Broad Investment-Grade Bond Index to the Barclays Capital | ||||||
U.S. Aggregate Bond Index. This reflects a change in the portfolio management analytics software used by American Century Investments’ fixed- | |||||||
income teams. The investment process is unchanged. |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays Capital U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for the LIVESTRONG Portfolio’s asset allocations as of January 31, 2010.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of LIVESTRONG Portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each LIVESTRONG Portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. As interest rates rise, bond values will decline.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
6
LIVESTRONG Portfolios | |||||||
Total Returns as of January 31, 2010 | |||||||
Average Annual Returns | |||||||
Ticker | Since | Inception | |||||
Symbol | 6 months(1) | 1 year | 5 years | Inception | Date | ||
LIVESTRONG 2040 Portfolio | |||||||
Investor Class | ARDVX | 8.32% | 29.95% | — | -9.25% | 5/30/08 | |
Russell 3000 Index(2) | — | 10.16% | 35.05% | — | -12.51% | — | |
Barclays Capital U.S. | |||||||
Aggregate Bond Index(3) | — | 3.87% | 8.51% | — | 6.94% | — | |
Citigroup US Broad | |||||||
Investment-Grade Bond Index | — | 3.64% | 7.54% | — | 7.40% | — | |
Institutional Class | ARDSX | 8.54% | 30.21% | — | -9.08% | 5/30/08 | |
Advisor Class | ARDMX | 8.33% | 29.63% | — | -9.46% | 5/30/08 | |
R Class | ARDRX | 8.07% | 29.35% | — | -9.74% | 5/30/08 | |
LIVESTRONG 2045 Portfolio | |||||||
Investor Class | AROIX | 8.46% | 30.67% | 2.46% | 4.10% | 8/31/04 | |
Russell 3000 Index(2) | — | 10.16% | 35.05% | 0.57% | 2.12% | — | |
Barclays Capital U.S. | |||||||
Aggregate Bond Index(3) | — | 3.87% | 8.51% | 5.16% | 5.11% | — | |
Citigroup US Broad | |||||||
Investment-Grade Bond Index | — | 3.64% | 7.54% | 5.40% | 5.34% | — | |
Institutional Class | AOOIX | 8.67% | 31.06% | 2.69% | 4.32% | 8/31/04 | |
Advisor Class | AROAX | 8.42% | 30.51% | 2.23% | 3.85% | 8/31/04 | |
R Class | ARORX | 8.26% | 30.19% | 1.97% | 3.59% | 8/31/04 | |
(1) | Total returns for periods less than one year are not annualized. | ||||||
(2) | Data provided by Lipper Inc. — A Reuters Company. © 2010 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper | ||||||
content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be | |||||||
liable for any errors or delays in the content, or for any actions taken in reliance thereon. | |||||||
The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be | |||||||
reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or | |||||||
sell any of the securities herein is being made by Lipper. | |||||||
(3) | In January 2010, the fund’s fixed-income benchmark changed from the Citigroup US Broad Investment-Grade Bond Index to the Barclays Capital | ||||||
U.S. Aggregate Bond Index. This reflects a change in the portfolio management analytics software used by American Century Investments’ fixed- | |||||||
income teams. The investment process is unchanged. |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays Capital U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for the LIVESTRONG Portfolio’s asset allocations as of January 31, 2010.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of LIVESTRONG Portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each LIVESTRONG Portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. As interest rates rise, bond values will decline.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
7
LIVESTRONG Portfolios | |||||||
Total Returns as of January 31, 2010 | |||||||
Average Annual Returns | |||||||
Ticker | Since | Inception | |||||
Symbol | 6 months(1) | 1 year | 5 years | Inception | Date | ||
LIVESTRONG 2050 Portfolio | |||||||
Investor Class | ARFVX | 8.65% | 31.15% | — | -11.22% | 5/30/08 | |
Russell 3000 Index(2) | — | 10.16% | 35.05% | — | -12.51% | — | |
Barclays Capital U.S. | |||||||
Aggregate Bond Index(3) | — | 3.87% | 8.51% | — | 6.94% | — | |
Citigroup US Broad | |||||||
Investment-Grade Bond Index | — | 3.64% | 7.54% | — | 7.40% | — | |
Institutional Class | ARFSX | 8.72% | 31.41% | — | -11.06% | 5/30/08 | |
Advisor Class | ARFMX | 8.52% | 31.04% | — | -11.43% | 5/30/08 | |
R Class | ARFWX | 8.40% | 30.71% | — | -11.64% | 5/30/08 | |
(1) | Total returns for periods less than one year are not annualized. | ||||||
(2) | Data provided by Lipper Inc. — A Reuters Company. © 2010 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper | ||||||
content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be | |||||||
liable for any errors or delays in the content, or for any actions taken in reliance thereon. | |||||||
The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be | |||||||
reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or | |||||||
sell any of the securities herein is being made by Lipper. | |||||||
(3) | In January 2010, the fund’s fixed-income benchmark changed from the Citigroup US Broad Investment-Grade Bond Index to the Barclays Capital | ||||||
U.S. Aggregate Bond Index. This reflects a change in the portfolio management analytics software used by American Century Investments’ fixed- | |||||||
income teams. The investment process is unchanged. |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays Capital U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for the LIVESTRONG Portfolio’s asset allocations as of January 31, 2010.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of LIVESTRONG Portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each LIVESTRONG Portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. As interest rates rise, bond values will decline.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
8
LIVESTRONG Portfolios
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67772x11x1.jpg)
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67772x11x2.jpg)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of LIVESTRONG Portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each LIVESTRONG Portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. As interest rates rise, bond values will decline.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
9
LIVESTRONG Portfolios
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67772x12x1.jpg)
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67772x12x2.jpg)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of LIVESTRONG Portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each LIVESTRONG Portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. As interest rates rise, bond values will decline.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
10
LIVESTRONG Portfolios
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67772x13x1.jpg)
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67772x13x2.jpg)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of LIVESTRONG Portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each LIVESTRONG Portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. As interest rates rise, bond values will decline.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
11
LIVESTRONG Portfolios
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67772x14x1.jpg)
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67772x14x2.jpg)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of LIVESTRONG Portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each LIVESTRONG Portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. As interest rates rise, bond values will decline.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
12
LIVESTRONG Portfolios
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67772x15x1.jpg)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of LIVESTRONG Portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each LIVESTRONG Portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. As interest rates rise, bond values will decline.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
13
LIVESTRONG Portfolios | |||||||
One-Year Returns Over Life of Class | |||||||
Periods ended January 31 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |
LIVESTRONG Income Portfolio — Investor Class | 5.00%(1) | 5.54% | 8.18% | 4.58% | -18.38% | 19.50% | |
LIVESTRONG 2015 Portfolio — Investor Class | 6.80%(1) | 8.55% | 9.07% | 4.76% | -21.57% | 21.59% | |
LIVESTRONG 2020 Portfolio — Investor Class | — | — | — | — | -25.47%(2) | 23.48% | |
LIVESTRONG 2025 Portfolio — Investor Class | 8.00%(1) | 11.30% | 9.99% | 3.82% | -25.95% | 24.69% | |
LIVESTRONG 2030 Portfolio — Investor Class | — | — | — | — | -30.64%(2) | 26.44% | |
LIVESTRONG 2035 Portfolio — Investor Class | 9.33%(1) | 13.33% | 11.38% | 3.00% | -31.03% | 28.21% | |
LIVESTRONG 2040 Portfolio — Investor Class | — | — | — | — | -34.59%(2) | 29.95% | |
LIVESTRONG 2045 Portfolio — Investor Class | 10.07%(1) | 14.20% | 12.09% | 2.46% | -34.09% | 30.67% | |
LIVESTRONG 2050 Portfolio — Investor Class | — | — | — | — | -37.53%(2) | 31.15% | |
Russell 3000 Index | 8.87%(1) | 12.67% | 14.11% | -3.08% | -38.86% | 35.05% | |
Barclays Capital U.S. Aggregate Bond Index | 1.86%(1) | 1.80% | 4.28% | 8.81% | 2.59% | 8.51% | |
Citigroup US Broad Investment-Grade Bond Index | 1.91%(1) | 1.91% | 4.32% | 9.32% | 4.06% | 7.54% | |
(1) | From 8/31/04, the Investor Class’s inception date. Not annualized. | ||||||
(2) | From 5/30/08, the Investor Class’s inception date. Not annualized. |
Total Annual Fund Operating Expenses | ||||
Investor Class | Institutional Class | Advisor Class | R Class | |
LIVESTRONG Income Portfolio | 0.77% | 0.57% | 1.02% | 1.27% |
LIVESTRONG 2015 Portfolio | 0.80% | 0.60% | 1.05% | 1.30% |
LIVESTRONG 2020 Portfolio | 0.83% | 0.63% | 1.08% | 1.33% |
LIVESTRONG 2025 Portfolio | 0.86% | 0.66% | 1.11% | 1.36% |
LIVESTRONG 2030 Portfolio | 0.89% | 0.69% | 1.14% | 1.39% |
LIVESTRONG 2035 Portfolio | 0.91% | 0.71% | 1.16% | 1.41% |
LIVESTRONG 2040 Portfolio | 0.94% | 0.74% | 1.19% | 1.44% |
LIVESTRONG 2045 Portfolio | 0.95% | 0.75% | 1.20% | 1.45% |
LIVESTRONG 2050 Portfolio | 0.96% | 0.76% | 1.21% | 1.46% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of LIVESTRONG Portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each LIVESTRONG Portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. As interest rates rise, bond values will decline.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
14
Portfolio Commentary |
LIVESTRONG Portfolios
Portfolio Managers: Enrique Chang, Scott Wittman, and Irina Torelli
Performance Summary
Each of the nine LIVESTRONG Portfolios advanced for the six months ended January 31, 2010, with returns ranging from 6.08%* for LIVESTRONG Income Portfolio to 8.65% for LIVESTRONG 2050 Portfolio (see pages 4–14 for more detailed performance information). The gains reflected positive performance across all asset classes represented in LIVESTRONG Portfolios during the six-month period.
Because of LIVESTRONG Portfolios’ strategic exposure to a variety of asset classes, a review of the financial markets helps explain much of their performance.
Stock Market Review
The U.S. stock market gained ground for the six-month period, extending a rally that began in March 2009. The market’s advance was driven by increasing investor confidence regarding a potential recovery from the sharp economic downturn in late 2008 and early 2009.
Signs of improvement were evident across many segments of the economy during the six months—home sales began to rise, manufacturing activity picked up, and retail sales figures showed uneven but promising results. Consequently, the U.S. economy grew at a 2.2% annual rate in the third quarter of 2009—its first positive quarterly growth rate in more than a year—and a 5.9% annual rate in the fourth quarter. In addition, cost-management efforts at many companies helped generate better-than-expected corporate earnings during the six-month period.
There were exceptions to the favorable economic data—most notably, the unemployment rate remained persistently elevated, reaching a 26-year high of 10.1% in October 2009 before falling back to 9.7% by the end of January 2010. Nonetheless, the overall economic picture was one of gradual improvement, and the stock market responded with a steady rally that persisted throughout much of the six-month period.
Stocks finished the period on a down note, giving back some of their gains late in the period as investors expressed some skepticism about the sustainability of the nascent economic recovery. Despite this hiccup, however, the broad stock indices gained approximately 10% overall for the six-month period. As the table on the next page indicates, mid-cap stocks posted the best results, while small-cap stocks lagged. Value-oriented shares outpaced growth issues across all market capitalizations, most notably in the small-cap segment of the market.
*All fund returns referenced in this commentary are for Investor Class shares. Total returns for periods less than one year are not annualized.
15
LIVESTRONG Portfolios | ||||
Market Index Total Returns | ||||
For the six months ended January 31, 2010(1) | ||||
U.S. Stocks | U.S. Fixed Income | |||
Russell 1000 Index (Large-Cap) | 10.27% | Barclays Capital U.S. | ||
Russell Midcap Index | 13.45% | Aggregate Bond Index | 3.87% | |
Russell 2000 Index (Small-Cap) | 8.86% | Barclays Capital 10-Year | ||
International Stocks | U.S. Treasury Note (Bellwether) | 0.58% | ||
MSCI EAFE (Europe, Australasia, Far East) Index | 6.93% | Barclays Capital Three-Month | ||
MSCI EM (Emerging Markets) Index | 11.40% | U.S. Treasury Bill (Bellwether) | 0.10% | |
(1) Total returns for periods less than one year are not annualized. | International Bonds | |||
Citigroup Non-U.S. World | ||||
Government Bond Index | 2.47% |
International equity markets also advanced during the six-month period as optimistic investors embraced the hope that the improving economic environment would blossom into a full-fledged global recovery in 2010. Emerging markets generated the best returns, benefiting the most from rising expectations for a global economic expansion. Among developed markets, countries along the Pacific Rim were the top performers, with the notable exception of Japan.
Bond Market Review
U.S. bonds gained ground during the period, though to a lesser degree than the equity market. The bond market’s advance was led primarily by corporate bonds, which benefited substantially from the improving economic environment and higher-than-anticipated corporate profits. In particular, high-yield corporate bonds posted double-digit gains for the period.
In contrast, Treasury and government agency securities generated modestly positive returns and lagged the rest of the bond market. As the economic environment improved, Treasury securities fell out of favor as investors shifted to other higher-yielding segments of the bond market. In addition, an increase in supply—as the government issued more securities to fund its economic stimulus efforts—weighed on the Treasury market.
Mortgage-backed securities performed in line with the broad bond market. The positive impact of the Federal Reserve’s purchases of mortgage-backed securities to support the housing market was largely offset by an increase in mortgage refinancing activity.
International fixed-income markets also advanced for the reporting period, though they lagged the performance of the domestic bond market. While many countries continued to issue new debt to fund economic stimulus programs, much like the U.S., the new supply was more than offset by strong demand from financial institutions seeking to maintain liquidity and rebuild their balance sheets. In addition, a weaker U.S. dollar provided a modest boost to foreign bond returns for U.S. investors. Although the dollar appreciated versus the euro, it declined versus the Japanese yen and other major currencies.
16
LIVESTRONG Portfolios
Underlying Fund Allocations(1) as a % of net assets as of January 31, 2010
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | ||
Income | 2015 | 2020 | 2025 | 2030 | ||
Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | ||
Equity | ||||||
NT Equity | ||||||
Growth Fund | 12.8% | 12.6% | 12.1% | 12.3% | 12.3% | |
NT Growth Fund | 6.3% | 7.6% | 8.6% | 10.2% | 12.3% | |
NT Large Company | ||||||
Value Fund | 10.8% | 11.1% | 11.1% | 11.6% | 12.4% | |
NT Mid Cap | ||||||
Value Fund | 3.9% | 4.6% | 5.4% | 5.2% | 5.2% | |
NT Small | ||||||
Company Fund | 2.0% | 1.9% | 2.2% | 3.2% | 4.1% | |
NT VistaSM Fund | 2.3% | 3.3% | 4.3% | 4.8% | 5.1% | |
Real Estate Fund | 1.0% | 1.2% | 1.4% | 1.7% | 1.9% | |
NT Emerging | ||||||
Markets Fund | — | 1.0% | 2.2% | 2.6% | 3.1% | |
NT International | ||||||
Growth Fund | 4.8% | 5.6% | 6.6% | 8.1% | 9.4% | |
Total Equity | 43.9% | 48.9% | 53.9% | 59.7% | 65.8% | |
Fixed Income | ||||||
High-Yield Fund | 3.9% | 3.7% | 3.6% | 3.2% | 2.8% | |
Inflation-Adjusted | ||||||
Bond Fund | 7.8% | 7.5% | 7.2% | 6.6% | 5.8% | |
NT Diversified | ||||||
Bond Fund | 27.0% | 26.2% | 25.2% | 22.8% | 20.4% | |
International | ||||||
Bond Fund | 7.1% | 6.0% | 5.0% | 2.5% | — | |
Total Fixed Income | 45.8% | 43.4% | 41.0% | 35.1% | 29.0% | |
Premium Money | ||||||
Market Fund | 10.3% | 7.7% | 5.1% | 5.2% | 5.2% | |
Other Assets | ||||||
and Liabilities | —(2) | —(2) | —(2) | —(2) | —(2) | |
(1) | Institutional Class, except Premium Money Market Fund Investor Class. | |||||
(2) | Category is less than 0.05% of total net assets. |
17
LIVESTRONG Portfolios
Underlying Fund Allocations(1) as a % of net assets as of January 31, 2010
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | ||
2035 | 2040 | 2045 | 2050 | ||
Portfolio | Portfolio | Portfolio | Portfolio | ||
Equity | |||||
NT Equity Growth Fund | 13.3% | 14.4% | 14.6% | 15.2% | |
NT Growth Fund | 13.3% | 14.4% | 14.6% | 15.2% | |
NT Large Company Value Fund | 13.4% | 14.4% | 14.9% | 15.5% | |
NT Mid Cap Value Fund | 6.2% | 7.2% | 7.3% | 7.4% | |
NT Small Company Fund | 4.1% | 3.9% | 4.4% | 4.9% | |
NT VistaSM Fund | 6.0% | 7.1% | 7.1% | 7.4% | |
Real Estate Fund | 2.2% | 2.4% | 2.7% | 3.0% | |
NT Emerging Markets Fund | 4.1% | 5.2% | 5.9% | 6.4% | |
NT International Growth Fund | 9.7% | 10.2% | 9.9% | 9.5% | |
Total Equity | 72.3% | 79.2% | 81.4% | 84.5% | |
Fixed Income | |||||
High-Yield Fund | 2.5% | 2.1% | 1.8% | 1.5% | |
Inflation-Adjusted Bond Fund | 5.0% | 4.2% | 3.7% | 3.1% | |
NT Diversified Bond Fund | 17.6% | 14.5% | 13.1% | 10.9% | |
Total Fixed Income | 25.1% | 20.8% | 18.6% | 15.5% | |
Premium Money Market Fund | 2.6% | — | — | — | |
Other Assets and Liabilities | —(2) | —(2) | —(2) | —(2) | |
(1) | Institutional Class, except Premium Money Market Fund Investor Class. | ||||
(2) | Category is less than 0.05% of total net assets. |
Fund Information
Each LIVESTRONG Portfolio is a “fund of funds” that invests in other American Century Investments mutual funds to achieve its investment objective and target asset allocation. (See pages 17–18 for the specific underlying fund allocations for each LIVESTRONG Portfolio.) A LIVESTRONG Portfolio’s target date is the approximate year when investors plan to start withdrawing their money. LIVESTRONG Income Portfolio is generally intended for investors near, at, or in retirement. There is no guarantee that an investment in any of the funds will provide adequate income at or through an investor’s retirement.
Each target-date LIVESTRONG Portfolio seeks the highest total return consistent with its asset mix. Each year, the asset mix and weightings are adjusted to be more conservative. In general, as the target year approaches, the portfolio’s allocation becomes more conservative by decreasing the allocation to stocks and increasing the allocation to bonds and money market instruments. By the time each fund reaches its target year, its target asset mix will become fixed and will match that of LIVESTRONG Income Portfolio.
18
LIVESTRONG Portfolios
Portfolio Performance
Within LIVESTRONG Portfolios, every stock fund gained ground during the six-month period. The top performer was the Real Estate Fund, which gained 24% amid improving economic conditions, continued access to capital, and a potential buyer’s market for commercial real estate in 2010 as financial institutions look to unload foreclosed properties. The NT Mid Cap Value Fund and NT Emerging Markets Fund also generated double-digit gains for the reporting period. The weakest performer on the equity side was the NT Vista Fund, LIVESTRONG Portfolios’ mid-cap growth component, which faced performance headw inds as stocks exhibiting accelerating growth and price momentum were out of favor for much of the period.
The leading performers among LIVESTRONG Portfolios’ fixed-income components were the High-Yield Fund, which returned more than 11% for the reporting period, and the Inflation-Adjusted Bond Fund, which benefited from concerns that the economic recovery could lead to higher inflation down the road. The International Bond Fund (which is represented only in LIVESTRONG Income Portfolio, LIVESTRONG 2015 Portfolio, LIVESTRONG 2020 Portfolio, and LIVESTRONG 2025 Portfolio) posted a fractionally positive return for the six-month period.
The NT Diversified Bond Fund, LIVESTRONG Portfolios’ main fixed-income holding, performed in line with the broad domestic bond market. Sector allocation contributed positively to NT Diversified Bond’s performance, particularly an overweight position in corporate bonds and an underweight position in Treasury bonds. During the period, the management team positioned NT Diversified Bond for a flatter yield curve—a narrower gap between short- and long-term interest rates—as this gap reached historically wide levels in late 2009.
Outlook
Despite improving economic conditions over the past six months, we believe that the global recovery still faces several headwinds. Unemployment remains persistently high, consumers and businesses continue to deleverage amid elevated debt levels, and the federal government is producing sizable budget deficits in its efforts to sustain the recovery. Perhaps the greatest challenge will be whether the economy can maintain its momentum when the government’s temporary stimulus programs end. LIVESTRONG Portfolios’ broad diversification should prove valuable in an uncertain investment environment.
19
Shareholder Fee Examples (Unaudited) |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/ exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds. As a shareholder in the underlying American Century Investments funds, your fund will indirectly bear its pro rata share of the expenses incurred by the underlying funds. These expenses are not included in the fund’s annualized expense ratio or the expenses paid during the period. These expenses are, however, included in the effective expenses paid during the period.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from August 1, 2009 to January 31, 2010.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or Institutional Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. We will not charge the fee as long as you choose to manage your accounts exclusively online. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
20
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Effective | |||||||
Expenses | Expenses | ||||||
Beginning | Ending | Paid During | Paid During | Effective | |||
Account | Account | Period(1) | Annualized | Period(2) | Annualized | ||
Value | Value | 8/1/09 – | Expense | 8/1/09 – | Expense | ||
8/1/09 | 1/31/10 | 1/31/10 | Ratio(1) | 1/31/10 | Ratio(2) | ||
LIVESTRONG Income Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,060.80 | $1.04 | 0.20% | $3.95 | 0.76% | |
Institutional Class | $1,000 | $1,061.90 | $0.00 | 0.00%(3) | $2.91 | 0.56% | |
Advisor Class | $1,000 | $1,059.40 | $2.34 | 0.45% | $5.24 | 1.01% | |
R Class | $1,000 | $1,058.10 | $3.63 | 0.70% | $6.54 | 1.26% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,024.20 | $1.02 | 0.20% | $3.87 | 0.76% | |
Institutional Class | $1,000 | $1,025.21 | $0.00 | 0.00%(3) | $2.85 | 0.56% | |
Advisor Class | $1,000 | $1,022.94 | $2.29 | 0.45% | $5.14 | 1.01% | |
R Class | $1,000 | $1,021.68 | $3.57 | 0.70% | $6.41 | 1.26% | |
(1) | Expenses are equal to the class’s annualized expense ratio listed in the table above, multiplied by the average account value over the period, | ||||||
multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. The fees and | |||||||
expenses of the underlying American Century Investments funds in which the fund invests are not included in the class’s annualized expense ratio. | |||||||
(2) | Effective expenses reflect the sum of expenses borne directly by the class plus the fund’s pro rata share of the weighted average expense | ||||||
ratio of the underlying funds in which it invests. The effective annualized expense ratio combines the class’s annualized expense ratio and the | |||||||
annualized weighted average expense ratio of the underlying funds. The annualized weighted average expense ratio of the underlying funds | |||||||
for the one-half year period reflects the actual expense ratio of each underlying fund from its most recent shareholder report, annualized and | |||||||
weighted for the fund’s relative average investment therein during the period. | |||||||
(3) | Other expenses, which include the fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not | ||||||
exceed 0.005%. |
21
Effective | |||||||
Expenses | Expenses | ||||||
Beginning | Ending | Paid During | Paid During | Effective | |||
Account | Account | Period(1) | Annualized | Period(2) | Annualized | ||
Value | Value | 8/1/09 – | Expense | 8/1/09 – | Expense | ||
8/1/09 | 1/31/10 | 1/31/10 | Ratio(1) | 1/31/10 | Ratio(2) | ||
LIVESTRONG 2015 Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,065.60 | $1.04 | 0.20% | $4.17 | 0.80% | |
Institutional Class | $1,000 | $1,066.60 | $0.00 | 0.00%(3) | $3.13 | 0.60% | |
Advisor Class | $1,000 | $1,064.00 | $2.34 | 0.45% | $5.46 | 1.05% | |
R Class | $1,000 | $1,063.50 | $3.64 | 0.70% | $6.76 | 1.30% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,024.20 | $1.02 | 0.20% | $4.08 | 0.80% | |
Institutional Class | $1,000 | $1,025.21 | $0.00 | 0.00%(3) | $3.06 | 0.60% | |
Advisor Class | $1,000 | $1,022.94 | $2.29 | 0.45% | $5.35 | 1.05% | |
R Class | $1,000 | $1,021.68 | $3.57 | 0.70% | $6.61 | 1.30% | |
LIVESTRONG 2020 Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,070.10 | $1.04 | 0.20% | $4.33 | 0.83% | |
Institutional Class | $1,000 | $1,069.70 | $0.00 | 0.00%(3) | $3.29 | 0.63% | |
Advisor Class | $1,000 | $1,068.70 | $2.35 | 0.45% | $5.63 | 1.08% | |
R Class | $1,000 | $1,067.30 | $3.65 | 0.70% | $6.93 | 1.33% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,024.20 | $1.02 | 0.20% | $4.23 | 0.83% | |
Institutional Class | $1,000 | $1,025.21 | $0.00 | 0.00%(3) | $3.21 | 0.63% | |
Advisor Class | $1,000 | $1,022.94 | $2.29 | 0.45% | $5.50 | 1.08% | |
R Class | $1,000 | $1,021.68 | $3.57 | 0.70% | $6.77 | 1.33% | |
(1) | Expenses are equal to the class’s annualized expense ratio listed in the table above, multiplied by the average account value over the period, | ||||||
multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. The fees and | |||||||
expenses of the underlying American Century Investments funds in which the fund invests are not included in the class’s annualized expense ratio. | |||||||
(2) | Effective expenses reflect the sum of expenses borne directly by the class plus the fund’s pro rata share of the weighted average expense | ||||||
ratio of the underlying funds in which it invests. The effective annualized expense ratio combines the class’s annualized expense ratio and the | |||||||
annualized weighted average expense ratio of the underlying funds. The annualized weighted average expense ratio of the underlying funds | |||||||
for the one-half year period reflects the actual expense ratio of each underlying fund from its most recent shareholder report, annualized and | |||||||
weighted for the fund’s relative average investment therein during the period. | |||||||
(3) | Other expenses, which include the fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not | ||||||
exceed 0.005%. |
22
Effective | |||||||
Expenses | Expenses | ||||||
Beginning | Ending | Paid During | Paid During | Effective | |||
Account | Account | Period(1) | Annualized | Period(2) | Annualized | ||
Value | Value | 8/1/09 – | Expense | 8/1/09 – | Expense | ||
8/1/09 | 1/31/10 | 1/31/10 | Ratio(1) | 1/31/10 | Ratio(2) | ||
LIVESTRONG 2025 Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,071.90 | $1.04 | 0.20% | $4.44 | 0.85% | |
Institutional Class | $1,000 | $1,072.90 | $0.00 | 0.00%(3) | $3.40 | 0.65% | |
Advisor Class | $1,000 | $1,071.40 | $2.35 | 0.45% | $5.74 | 1.10% | |
R Class | $1,000 | $1,069.80 | $3.65 | 0.70% | $7.04 | 1.35% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,024.20 | $1.02 | 0.20% | $4.33 | 0.85% | |
Institutional Class | $1,000 | $1,025.21 | $0.00 | 0.00%(3) | $3.31 | 0.65% | |
Advisor Class | $1,000 | $1,022.94 | $2.29 | 0.45% | $5.60 | 1.10% | |
R Class | $1,000 | $1,021.68 | $3.57 | 0.70% | $6.87 | 1.35% | |
LIVESTRONG 2030 Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,077.30 | $1.05 | 0.20% | $4.61 | 0.88% | |
Institutional Class | $1,000 | $1,078.10 | $0.00 | 0.00%(3) | $3.56 | 0.68% | |
Advisor Class | $1,000 | $1,074.70 | $2.35 | 0.45% | $5.91 | 1.13% | |
R Class | $1,000 | $1,073.30 | $3.66 | 0.70% | $7.21 | 1.38% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,024.20 | $1.02 | 0.20% | $4.48 | 0.88% | |
Institutional Class | $1,000 | $1,025.21 | $0.00 | 0.00%(3) | $3.47 | 0.68% | |
Advisor Class | $1,000 | $1,022.94 | $2.29 | 0.45% | $5.75 | 1.13% | |
R Class | $1,000 | $1,021.68 | $3.57 | 0.70% | $7.02 | 1.38% | |
(1) | Expenses are equal to the class’s annualized expense ratio listed in the table above, multiplied by the average account value over the period, | ||||||
multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. The fees and | |||||||
expenses of the underlying American Century Investments funds in which the fund invests are not included in the class’s annualized expense ratio. | |||||||
(2) | Effective expenses reflect the sum of expenses borne directly by the class plus the fund’s pro rata share of the weighted average expense | ||||||
ratio of the underlying funds in which it invests. The effective annualized expense ratio combines the class’s annualized expense ratio and the | |||||||
annualized weighted average expense ratio of the underlying funds. The annualized weighted average expense ratio of the underlying funds | |||||||
for the one-half year period reflects the actual expense ratio of each underlying fund from its most recent shareholder report, annualized and | |||||||
weighted for the fund’s relative average investment therein during the period. | |||||||
(3) | Other expenses, which include the fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not | ||||||
exceed 0.005%. |
23
Effective | |||||||
Expenses | Expenses | ||||||
Beginning | Ending | Paid During | Paid During | Effective | |||
Account | Account | Period(1) | Annualized | Period(2) | Annualized | ||
Value | Value | 8/1/09 – | Expense | 8/1/09 – | Expense | ||
8/1/09 | 1/31/10 | 1/31/10 | Ratio(1) | 1/31/10 | Ratio(2) | ||
LIVESTRONG 2035 Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,080.70 | $1.05 | 0.20% | $4.77 | 0.91% | |
Institutional Class | $1,000 | $1,081.70 | $0.00 | 0.00%(3) | $3.73 | 0.71% | |
Advisor Class | $1,000 | $1,079.10 | $2.36 | 0.45% | $6.08 | 1.16% | |
R Class | $1,000 | $1,077.50 | $3.67 | 0.70% | $7.38 | 1.41% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,024.20 | $1.02 | 0.20% | $4.63 | 0.91% | |
Institutional Class | $1,000 | $1,025.21 | $0.00 | 0.00%(3) | $3.62 | 0.71% | |
Advisor Class | $1,000 | $1,022.94 | $2.29 | 0.45% | $5.90 | 1.16% | |
R Class | $1,000 | $1,021.68 | $3.57 | 0.70% | $7.17 | 1.41% | |
LIVESTRONG 2040 Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,083.20 | $1.05 | 0.20% | $4.88 | 0.93% | |
Institutional Class | $1,000 | $1,085.40 | $0.00 | 0.00%(3) | $3.84 | 0.73% | |
Advisor Class | $1,000 | $1,083.30 | $2.36 | 0.45% | $6.20 | 1.18% | |
R Class | $1,000 | $1,080.70 | $3.67 | 0.70% | $7.50 | 1.43% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,024.20 | $1.02 | 0.20% | $4.74 | 0.93% | |
Institutional Class | $1,000 | $1,025.21 | $0.00 | 0.00%(3) | $3.72 | 0.73% | |
Advisor Class | $1,000 | $1,022.94 | $2.29 | 0.45% | $6.01 | 1.18% | |
R Class | $1,000 | $1,021.68 | $3.57 | 0.70% | $7.27 | 1.43% | |
(1) | Expenses are equal to the class’s annualized expense ratio listed in the table above, multiplied by the average account value over the period, | ||||||
multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. The fees and | |||||||
expenses of the underlying American Century Investments funds in which the fund invests are not included in the class’s annualized expense ratio. | |||||||
(2) | Effective expenses reflect the sum of expenses borne directly by the class plus the fund’s pro rata share of the weighted average expense | ||||||
ratio of the underlying funds in which it invests. The effective annualized expense ratio combines the class’s annualized expense ratio and the | |||||||
annualized weighted average expense ratio of the underlying funds. The annualized weighted average expense ratio of the underlying funds | |||||||
for the one-half year period reflects the actual expense ratio of each underlying fund from its most recent shareholder report, annualized and | |||||||
weighted for the fund’s relative average investment therein during the period. | |||||||
(3) | Other expenses, which include the fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not | ||||||
exceed 0.005%. |
24
Effective | |||||||
Expenses | Expenses | ||||||
Beginning | Ending | Paid During | Paid During | Effective | |||
Account | Account | Period(1) | Annualized | Period(2) | Annualized | ||
Value | Value | 8/1/09 – | Expense | 8/1/09 – | Expense | ||
8/1/09 | 1/31/10 | 1/31/10 | Ratio(1) | 1/31/10 | Ratio(2) | ||
LIVESTRONG 2045 Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,084.60 | $1.05 | 0.20% | $4.99 | 0.95% | |
Institutional Class | $1,000 | $1,086.70 | $0.00 | 0.00%(3) | $3.94 | 0.75% | |
Advisor Class | $1,000 | $1,084.20 | $2.36 | 0.45% | $6.30 | 1.20% | |
R Class | $1,000 | $1,082.60 | $3.67 | 0.70% | $7.61 | 1.45% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,024.20 | $1.02 | 0.20% | $4.84 | 0.95% | |
Institutional Class | $1,000 | $1,025.21 | $0.00 | 0.00%(3) | $3.82 | 0.75% | |
Advisor Class | $1,000 | $1,022.94 | $2.29 | 0.45% | $6.11 | 1.20% | |
R Class | $1,000 | $1,021.68 | $3.57 | 0.70% | $7.37 | 1.45% | |
LIVESTRONG 2050 Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,086.50 | $1.05 | 0.20% | $5.00 | 0.95% | |
Institutional Class | $1,000 | $1,087.20 | $0.00 | 0.00%(3) | $3.95 | 0.75% | |
Advisor Class | $1,000 | $1,085.20 | $2.37 | 0.45% | $6.31 | 1.20% | |
R Class | $1,000 | $1,084.00 | $3.68 | 0.70% | $7.62 | 1.45% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,024.20 | $1.02 | 0.20% | $4.84 | 0.95% | |
Institutional Class | $1,000 | $1,025.21 | $0.00 | 0.00%(3) | $3.82 | 0.75% | |
Advisor Class | $1,000 | $1,022.94 | $2.29 | 0.45% | $6.11 | 1.20% | |
R Class | $1,000 | $1,021.68 | $3.57 | 0.70% | $7.37 | 1.45% | |
(1) | Expenses are equal to the class’s annualized expense ratio listed in the table above, multiplied by the average account value over the period, | ||||||
multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. The fees and | |||||||
expenses of the underlying American Century Investments funds in which the fund invests are not included in the class’s annualized expense ratio. | |||||||
(2) | Effective expenses reflect the sum of expenses borne directly by the class plus the fund’s pro rata share of the weighted average expense | ||||||
ratio of the underlying funds in which it invests. The effective annualized expense ratio combines the class’s annualized expense ratio and the | |||||||
annualized weighted average expense ratio of the underlying funds. The annualized weighted average expense ratio of the underlying funds | |||||||
for the one-half year period reflects the actual expense ratio of each underlying fund from its most recent shareholder report, annualized and | |||||||
weighted for the fund’s relative average investment therein during the period. | |||||||
(3) | Other expenses, which include the fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not | ||||||
exceed 0.005%. |
25
Schedule of Investments |
LIVESTRONG Portfolios | ||||||||
JANUARY 31, 2010 (UNAUDITED) | ||||||||
Shares | Value | Shares | Value | |||||
LIVESTRONG Income Portfolio | LIVESTRONG 2015 Portfolio | |||||||
Mutual Funds(1) — 100.0% | Mutual Funds(1) — 100.0% | |||||||
DOMESTIC EQUITY FUNDS — 39.1% | DOMESTIC EQUITY FUNDS — 42.3% | |||||||
NT Equity Growth Fund | NT Equity Growth Fund | |||||||
Institutional Class | 3,083,049 | $ 25,188,510 | Institutional Class | 6,532,807 | $ 53,373,033 | |||
NT Growth Fund | NT Growth Fund | |||||||
Institutional Class | 1,286,901 | 12,444,333 | Institutional Class | 3,330,216 | 32,203,189 | |||
NT Large Company Value | NT Large Company Value | |||||||
Fund Institutional Class | 2,852,295 | 21,363,689 | Fund Institutional Class | 6,306,583 | 47,236,307 | |||
NT Mid Cap Value Fund | NT Mid Cap Value Fund | |||||||
Institutional Class | 873,112 | 7,770,697 | Institutional Class | 2,221,611 | 19,772,338 | |||
NT Small Company Fund | NT Small Company Fund | |||||||
Institutional Class | 589,928 | 3,869,928 | Institutional Class | 1,253,305 | 8,221,681 | |||
NT Vista Fund | NT Vista Fund | |||||||
Institutional Class | 597,050 | 4,633,108 | Institutional Class | 1,824,483 | 14,157,988 | |||
Real Estate Fund | Real Estate Fund | |||||||
Institutional Class | 138,998 | 1,880,643 | Institutional Class | 375,659 | 5,082,666 | |||
77,150,908 | 180,047,202 | |||||||
DOMESTIC FIXED INCOME FUNDS — 38.7% | DOMESTIC FIXED INCOME FUNDS — 37.4% | |||||||
High-Yield Fund | High-Yield Fund | |||||||
Institutional Class | 1,303,092 | 7,583,996 | Institutional Class | 2,723,372 | 15,850,025 | |||
Inflation-Adjusted Bond | Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 1,324,582 | 15,431,380 | Fund Institutional Class | 2,740,226 | 31,923,633 | |||
NT Diversified Bond Fund | NT Diversified Bond Fund | |||||||
Institutional Class | 5,044,117 | 53,215,434 | Institutional Class | 10,551,739 | 111,320,846 | |||
76,230,810 | 159,094,504 | |||||||
MONEY MARKET FUNDS — 10.3% | MONEY MARKET FUNDS — 7.7% | |||||||
Premium Money Market | Premium Money Market | |||||||
Fund Investor Class | 20,206,635 | 20,206,635 | Fund Investor Class | 32,633,068 | 32,633,068 | |||
INTERNATIONAL FIXED INCOME FUNDS — 7.1% | INTERNATIONAL EQUITY FUNDS — 6.6% | |||||||
International Bond Fund | NT Emerging Markets Fund | |||||||
Institutional Class | 982,155 | 13,985,887 | Institutional Class | 458,444 | 3,933,449 | |||
INTERNATIONAL EQUITY FUNDS — 4.8% | NT International Growth | |||||||
NT International Growth | Fund Institutional Class | 2,909,046 | 23,883,268 | |||||
Fund Institutional Class | 1,164,397 | 9,559,700 | 27,816,717 | |||||
TOTAL INVESTMENT | INTERNATIONAL FIXED INCOME FUNDS — 6.0% | |||||||
SECURITIES — 100.0% | International Bond Fund | |||||||
(Cost $179,874,001) | 197,133,940 | Institutional Class | 1,802,706 | 25,670,534 | ||||
OTHER ASSETS AND LIABILITIES(2) | 21 | TOTAL INVESTMENT | ||||||
TOTAL NET ASSETS — 100.0% | $197,133,961 | SECURITIES — 100.0% | ||||||
(Cost $403,764,011) | 425,262,025 | |||||||
Notes to Schedule of Investments | OTHER ASSETS AND LIABILITIES(2) | 25 | ||||||
(1) | Investments are funds within the American Century Investments | TOTAL NET ASSETS — 100.0% | $425,262,050 | |||||
family of funds, of which certain funds may be deemed to be under | ||||||||
common control because of the same board of directors. | Notes to Schedule of Investments | |||||||
(2) | Category is less than 0.05% of total net assets. | (1) | Investments are funds within the American Century Investments | |||||
family of funds, of which certain funds may be deemed to be under | ||||||||
common control because of the same board of directors. | ||||||||
See Notes to Financial Statements. | (2) | Category is less than 0.05% of total net assets. |
26
LIVESTRONG Portfolios | ||||||||
Shares | Value | Shares | Value | |||||
LIVESTRONG 2020 Portfolio | LIVESTRONG 2025 Portfolio | |||||||
Mutual Funds(1) — 100.0% | Mutual Funds(1) — 100.0% | |||||||
DOMESTIC EQUITY FUNDS — 45.1% | DOMESTIC EQUITY FUNDS — 49.0% | |||||||
NT Equity Growth Fund | NT Equity Growth Fund | |||||||
Institutional Class | 2,882,861 | $ 23,552,974 | Institutional Class | 8,548,405 | $ 69,840,469 | |||
NT Growth Fund | NT Growth Fund | |||||||
Institutional Class | 1,731,456 | 16,743,180 | Institutional Class | 6,045,194 | 58,457,026 | |||
NT Large Company Value | NT Large Company Value | |||||||
Fund Institutional Class | 2,897,993 | 21,705,968 | Fund Institutional Class | 8,796,317 | 65,884,414 | |||
NT Mid Cap Value Fund | NT Mid Cap Value Fund | |||||||
Institutional Class | 1,179,842 | 10,500,594 | Institutional Class | 3,304,703 | 29,411,857 | |||
NT Small Company Fund | NT Small Company Fund | |||||||
Institutional Class | 646,542 | 4,241,315 | Institutional Class | 2,738,444 | 17,964,193 | |||
NT Vista Fund | NT Vista Fund | |||||||
Institutional Class | 1,088,386 | 8,445,875 | Institutional Class | 3,504,285 | 27,193,251 | |||
Real Estate Fund | Real Estate Fund | |||||||
Institutional Class | 207,236 | 2,803,903 | Institutional Class | 712,510 | 9,640,260 | |||
87,993,809 | 278,391,470 | |||||||
DOMESTIC FIXED INCOME FUNDS — 36.0% | DOMESTIC FIXED INCOME FUNDS — 32.6% | |||||||
High-Yield Fund | High-Yield Fund | |||||||
Institutional Class | 1,188,761 | 6,918,589 | Institutional Class | 3,147,408 | 18,317,914 | |||
Inflation-Adjusted Bond | Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 1,209,065 | 14,085,607 | Fund Institutional Class | 3,203,526 | 37,321,078 | |||
NT Diversified Bond Fund | NT Diversified Bond Fund | |||||||
Institutional Class | 4,660,012 | 49,163,127 | Institutional Class | 12,292,812 | 129,689,167 | |||
70,167,323 | 185,328,159 | |||||||
INTERNATIONAL EQUITY FUNDS — 8.8% | INTERNATIONAL EQUITY FUNDS — 10.7% | |||||||
NT Emerging Markets Fund | NT Emerging Markets Fund | |||||||
Institutional Class | 486,097 | 4,170,712 | Institutional Class | 1,721,044 | 14,766,557 | |||
NT International Growth | NT International Growth | |||||||
Fund Institutional Class | 1,575,303 | 12,933,238 | Fund Institutional Class | 5,601,103 | 45,985,056 | |||
17,103,950 | 60,751,613 | |||||||
MONEY MARKET FUNDS — 5.1% | MONEY MARKET FUNDS — 5.2% | |||||||
Premium Money Market | Premium Money Market | |||||||
Fund Investor Class | 10,006,659 | 10,006,659 | Fund Investor Class | 29,456,452 | 29,456,452 | |||
INTERNATIONAL FIXED INCOME FUNDS — 5.0% | INTERNATIONAL FIXED INCOME FUNDS — 2.5% | |||||||
International Bond Fund | International Bond Fund | |||||||
Institutional Class | 688,355 | 9,802,175 | Institutional Class | 1,011,227 | 14,399,873 | |||
TOTAL INVESTMENT | TOTAL INVESTMENT | |||||||
SECURITIES — 100.0% | SECURITIES — 100.0% | |||||||
(Cost $178,640,850) | 195,073,916 | (Cost $545,392,638) | 568,327,567 | |||||
OTHER ASSETS AND LIABILITIES(2) | 34 | OTHER ASSETS AND LIABILITIES(2) | 6,040 | |||||
TOTAL NET ASSETS — 100.0% | $195,073,950 | TOTAL NET ASSETS — 100.0% | $568,333,607 | |||||
Notes to Schedule of Investments | Notes to Schedule of Investments | |||||||
(1) | Investments are funds within the American Century Investments | (1) | Investments are funds within the American Century Investments | |||||
family of funds, of which certain funds may be deemed to be under | family of funds, of which certain funds may be deemed to be under | |||||||
common control because of the same board of directors. | common control because of the same board of directors. | |||||||
(2) | Category is less than 0.05% of total net assets. | (2) | Category is less than 0.05% of total net assets. | |||||
See Notes to Financial Statements. |
27
LIVESTRONG Portfolios | ||||||||
Shares | Value | Shares | Value | |||||
LIVESTRONG 2030 Portfolio | LIVESTRONG 2035 Portfolio | |||||||
Mutual Funds(1) — 100.0% | Mutual Funds(1) — 100.0% | |||||||
DOMESTIC EQUITY FUNDS — 53.3% | DOMESTIC EQUITY FUNDS — 58.5% | |||||||
NT Equity Growth Fund | NT Equity Growth Fund | |||||||
Institutional Class | 2,448,227 | $ 20,002,014 | Institutional Class | 5,639,475 | $ 46,074,511 | |||
NT Growth Fund | NT Growth Fund | |||||||
Institutional Class | 2,065,782 | 19,976,112 | Institutional Class | 4,751,198 | 45,944,085 | |||
NT Large Company Value | NT Large Company Value | |||||||
Fund Institutional Class | 2,681,971 | 20,087,963 | Fund Institutional Class | 6,168,862 | 46,204,776 | |||
NT Mid Cap Value Fund | NT Mid Cap Value Fund | |||||||
Institutional Class | 944,018 | 8,401,760 | Institutional Class | 2,401,885 | 21,376,776 | |||
NT Small Company Fund | NT Small Company Fund | |||||||
Institutional Class | 1,024,641 | 6,721,645 | Institutional Class | 2,140,060 | 14,038,794 | |||
NT Vista Fund | NT Vista Fund | |||||||
Institutional Class | 1,057,397 | 8,205,401 | Institutional Class | 2,690,779 | 20,880,445 | |||
Real Estate Fund | Real Estate Fund | |||||||
Institutional Class | 232,691 | 3,148,309 | Institutional Class | 558,125 | 7,551,431 | |||
86,543,204 | 202,070,818 | |||||||
DOMESTIC FIXED INCOME FUNDS — 29.0% | DOMESTIC FIXED INCOME FUNDS — 25.1% | |||||||
High-Yield Fund | High-Yield Fund | |||||||
Institutional Class | 798,770 | 4,648,842 | Institutional Class | 1,464,256 | 8,521,970 | |||
Inflation-Adjusted Bond | Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 813,299 | 9,474,933 | Fund Institutional Class | 1,489,425 | 17,351,801 | |||
NT Diversified Bond Fund | NT Diversified Bond Fund | |||||||
Institutional Class | 3,137,074 | 33,096,131 | Institutional Class | 5,770,223 | 60,875,853 | |||
47,219,906 | 86,749,624 | |||||||
INTERNATIONAL EQUITY FUNDS — 12.5% | INTERNATIONAL EQUITY FUNDS — 13.8% | |||||||
NT Emerging Markets Fund | NT Emerging Markets Fund | |||||||
Institutional Class | 589,983 | 5,062,054 | Institutional Class | 1,659,329 | 14,237,043 | |||
NT International Growth | NT International Growth | |||||||
Fund Institutional Class | 1,852,344 | 15,207,744 | Fund Institutional Class | 4,047,908 | 33,233,325 | |||
20,269,798 | 47,470,368 | |||||||
MONEY MARKET FUNDS — 5.2% | MONEY MARKET FUNDS — 2.6% | |||||||
Premium Money Market | Premium Money Market | |||||||
Fund Investor Class | 8,414,478 | 8,414,478 | Fund Investor Class | 8,984,506 | 8,984,506 | |||
TOTAL INVESTMENT | TOTAL INVESTMENT | |||||||
SECURITIES — 100.0% | SECURITIES — 100.0% | |||||||
(Cost $147,706,196) | 162,447,386 | (Cost $336,130,081) | 345,275,316 | |||||
OTHER ASSETS AND LIABILITIES(2) | 23 | OTHER ASSETS AND LIABILITIES(2) | 19 | |||||
TOTAL NET ASSETS — 100.0% | $162,447,409 | TOTAL NET ASSETS — 100.0% | $345,275,335 | |||||
Notes to Schedule of Investments | Notes to Schedule of Investments | |||||||
(1) | Investments are funds within the American Century Investments | (1) | Investments are funds within the American Century Investments | |||||
family of funds, of which certain funds may be deemed to be under | family of funds, of which certain funds may be deemed to be under | |||||||
common control because of the same board of directors. | common control because of the same board of directors. | |||||||
(2) | Category is less than 0.05% of total net assets. | (2) | Category is less than 0.05% of total net assets. | |||||
See Notes to Financial Statements. |
28
LIVESTRONG Portfolios | ||||||||
Shares | Value | Shares | Value | |||||
LIVESTRONG 2040 Portfolio | LIVESTRONG 2045 Portfolio | |||||||
Mutual Funds(1) — 100.0% | Mutual Funds(1) — 100.0% | |||||||
DOMESTIC EQUITY FUNDS — 63.8% | DOMESTIC EQUITY FUNDS — 65.6% | |||||||
NT Equity Growth Fund | NT Equity Growth Fund | |||||||
Institutional Class | 1,353,895 | $ 11,061,322 | Institutional Class | 3,335,777 | $ 27,253,298 | |||
NT Growth Fund | NT Growth Fund | |||||||
Institutional Class | 1,142,367 | 11,046,689 | Institutional Class | 2,810,460 | 27,177,148 | |||
NT Large Company Value | NT Large Company Value | |||||||
Fund Institutional Class | 1,483,181 | 11,109,026 | Fund Institutional Class | 3,711,359 | 27,798,079 | |||
NT Mid Cap Value Fund | NT Mid Cap Value Fund | |||||||
Institutional Class | 619,536 | 5,513,870 | Institutional Class | 1,521,676 | 13,542,917 | |||
NT Small Company Fund | NT Small Company Fund | |||||||
Institutional Class | 459,216 | 3,012,457 | Institutional Class | 1,260,993 | 8,272,114 | |||
NT Vista Fund | NT Vista Fund | |||||||
Institutional Class | 702,660 | 5,452,642 | Institutional Class | 1,695,214 | 13,154,861 | |||
Real Estate Fund | Real Estate Fund | |||||||
Institutional Class | 139,045 | 1,881,279 | Institutional Class | 372,078 | 5,034,215 | |||
49,077,285 | 122,232,632 | |||||||
DOMESTIC FIXED INCOME FUNDS — 20.8% | DOMESTIC FIXED INCOME FUNDS — 18.6% | |||||||
High-Yield Fund | High-Yield Fund | |||||||
Institutional Class | 271,118 | 1,577,907 | Institutional Class | 583,401 | 3,395,394 | |||
Inflation-Adjusted Bond | Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 275,934 | 3,214,631 | Fund Institutional Class | 593,143 | 6,910,116 | |||
NT Diversified Bond Fund | NT Diversified Bond Fund | |||||||
Institutional Class | 1,063,763 | 11,222,699 | Institutional Class | 2,313,395 | 24,406,317 | |||
16,015,237 | 34,711,827 | |||||||
INTERNATIONAL EQUITY FUNDS — 15.4% | INTERNATIONAL EQUITY FUNDS — 15.8% | |||||||
NT Emerging Markets Fund | NT Emerging Markets Fund | |||||||
Institutional Class | 464,699 | 3,987,117 | Institutional Class | 1,280,348 | 10,985,386 | |||
NT International Growth | NT International Growth | |||||||
Fund Institutional Class | 953,945 | 7,831,889 | Fund Institutional Class | 2,247,908 | 18,455,324 | |||
11,819,006 | 29,440,710 | |||||||
TOTAL INVESTMENT | TOTAL INVESTMENT | |||||||
SECURITIES — 100.0% | SECURITIES — 100.0% | |||||||
(Cost $70,054,254) | 76,911,528 | (Cost $186,802,357) | 186,385,169 | |||||
OTHER ASSETS AND LIABILITIES(2) | 30 | OTHER ASSETS AND LIABILITIES(2) | (550) | |||||
TOTAL NET ASSETS — 100.0% | $76,911,558 | TOTAL NET ASSETS — 100.0% | $186,384,619 | |||||
Notes to Schedule of Investments | Notes to Schedule of Investments | |||||||
(1) | Investments are funds within the American Century Investments | (1) | Investments are funds within the American Century Investments | |||||
family of funds, of which certain funds may be deemed to be under | family of funds, of which certain funds may be deemed to be under | |||||||
common control because of the same board of directors. | common control because of the same board of directors. | |||||||
(2) | Category is less than 0.05% of total net assets. | (2) | Category is less than 0.05% of total net assets. | |||||
See Notes to Financial Statements. |
29
LIVESTRONG Portfolios | |||
Shares | Value | ||
LIVESTRONG 2050 Portfolio | |||
Mutual Funds(1) — 100.0% | |||
DOMESTIC EQUITY FUNDS — 68.6% | |||
NT Equity Growth Fund | |||
Institutional Class | 369,255 | $ 3,016,813 | |
NT Growth Fund | |||
Institutional Class | 311,570 | 3,012,882 | |
NT Large Company Value | |||
Fund Institutional Class | 411,156 | 3,079,558 | |
NT Mid Cap Value Fund | |||
Institutional Class | 166,410 | 1,481,049 | |
NT Small Company Fund | |||
Institutional Class | 150,036 | 984,236 | |
NT Vista Fund | |||
Institutional Class | 188,947 | 1,466,229 | |
Real Estate Fund | |||
Institutional Class | 43,652 | 590,612 | |
13,631,379 | |||
INTERNATIONAL EQUITY FUNDS — 15.9% | |||
NT Emerging Markets Fund | |||
Institutional Class | 149,762 | 1,284,958 | |
NT International Growth | |||
Fund Institutional Class | 229,395 | 1,883,333 | |
3,168,291 | |||
DOMESTIC FIXED INCOME FUNDS — 15.5% | |||
High-Yield Fund | |||
Institutional Class | 52,253 | 304,113 | |
Inflation-Adjusted Bond | |||
Fund Institutional Class | 53,151 | 619,209 | |
NT Diversified Bond Fund | |||
Institutional Class | 204,869 | 2,161,368 | |
3,084,690 | |||
TOTAL INVESTMENT | |||
SECURITIES — 100.0% | |||
(Cost $18,579,226) | 19,884,360 | ||
OTHER ASSETS AND LIABILITIES(2) | 48 | ||
TOTAL NET ASSETS — 100.0% | $19,884,408 | ||
Notes to Schedule of Investments | |||
(1) | Investments are funds within the American Century Investments | ||
family of funds, of which certain funds may be deemed to be under | |||
common control because of the same board of directors. | |||
(2) | Category is less than 0.05% of total net assets. | ||
See Notes to Financial Statements. |
30
Statement of Assets and Liabilities |
JANUARY 31, 2010 (UNAUDITED) | |||
LIVESTRONG | LIVESTRONG | LIVESTRONG | |
Income Portfolio | 2015 Portfolio | 2020 Portfolio | |
Assets | |||
Investment securities in affiliates, at value | |||
(cost of $179,874,001, $403,764,011 | |||
and $178,640,850, respectively) | $197,133,940 | $425,262,025 | $195,073,916 |
Cash | 41,124 | 80,448 | 38,165 |
Receivable for capital shares sold | 517,532 | 1,539,664 | 949,070 |
Distributions receivable from affiliates | 185,666 | 381,811 | 167,938 |
197,878,262 | 427,263,948 | 196,229,089 | |
Liabilities | |||
Payable for investments purchased | 621,588 | 1,745,539 | 1,079,069 |
Payable for capital shares redeemed | 77,220 | 167,267 | 33,796 |
Accrued administrative fees | 28,755 | 60,732 | 28,087 |
Distribution and service fees payable | 16,738 | 28,360 | 14,187 |
744,301 | 2,001,898 | 1,155,139 | |
Net Assets | $197,133,961 | $425,262,050 | $195,073,950 |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $192,696,929 | $425,475,258 | $180,782,526 |
Undistributed net investment income | 158,668 | 333,875 | 141,925 |
Accumulated net realized loss on investment transactions | (12,981,575) | (22,045,097) | (2,283,567) |
Net unrealized appreciation on investments | 17,259,939 | 21,498,014 | 16,433,066 |
$197,133,961 | $425,262,050 | $195,073,950 | |
Investor Class, $0.01 Par Value | |||
Net assets | $98,334,114 | $248,523,201 | $107,071,166 |
Shares outstanding | 9,864,343 | 24,049,268 | 12,022,717 |
Net asset value per share | $9.97 | $10.33 | $8.91 |
Institutional Class, $0.01 Par Value | |||
Net assets | $29,566,846 | $69,002,246 | $29,395,949 |
Shares outstanding | 2,965,649 | 6,672,689 | 3,301,945 |
Net asset value per share | $9.97 | $10.34 | $8.90 |
Advisor Class, $0.01 Par Value | |||
Net assets | $59,210,814 | $78,689,209 | $47,825,105 |
Shares outstanding | 5,940,909 | 7,616,288 | 5,373,476 |
Net asset value per share | $9.97 | $10.33 | $8.90 |
R Class, $0.01 Par Value | |||
Net assets | $10,022,187 | $29,047,394 | $10,781,730 |
Shares outstanding | 1,005,936 | 2,811,400 | 1,211,670 |
Net asset value per share | $9.96 | $10.33 | $8.90 |
See Notes to Financial Statements. |
31
JANUARY 31, 2010 (UNAUDITED) | |||
LIVESTRONG | LIVESTRONG | LIVESTRONG | |
2025 Portfolio | 2030 Portfolio | 2035 Portfolio | |
Assets | |||
Investment securities in affiliates, at value | |||
(cost of $545,392,638, $147,706,196 | |||
and $336,130,081, respectively) | $568,327,567 | $162,447,386 | $345,275,316 |
Cash | 103,864 | 33,961 | 66,040 |
Receivable for capital shares sold | 1,490,944 | 537,017 | 621,427 |
Distributions receivable from affiliates | 444,090 | 112,979 | 207,282 |
570,366,465 | 163,131,343 | 346,170,065 | |
Liabilities | |||
Payable for investments purchased | 1,309,661 | 497,344 | 490,440 |
Payable for capital shares redeemed | 608,258 | 148,993 | 331,213 |
Accrued administrative fees | 82,569 | 23,842 | 50,085 |
Distribution and service fees payable | 32,370 | 13,755 | 22,992 |
2,032,858 | 683,934 | 894,730 | |
Net Assets | $568,333,607 | $162,447,409 | $345,275,335 |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $572,613,192 | $149,460,080 | $353,414,847 |
Undistributed net investment income | 374,556 | 87,062 | 153,298 |
Accumulated net realized loss on investment transactions | (27,589,070) | (1,840,923) | (17,438,045) |
Net unrealized appreciation on investments | 22,934,929 | 14,741,190 | 9,145,235 |
$568,333,607 | $162,447,409 | $345,275,335 | |
Investor Class, $0.01 Par Value | |||
Net assets | $357,078,371 | $83,856,053 | $202,950,900 |
Shares outstanding | 34,656,407 | 9,817,406 | 19,524,812 |
Net asset value per share | $10.30 | $8.54 | $10.39 |
Institutional Class, $0.01 Par Value | |||
Net assets | $88,142,746 | $22,911,050 | $54,825,923 |
Shares outstanding | 8,554,702 | 2,683,888 | 5,271,926 |
Net asset value per share | $10.30 | $8.54 | $10.40 |
Advisor Class, $0.01 Par Value | |||
Net assets | $90,754,334 | $45,683,888 | $64,691,836 |
Shares outstanding | 8,808,232 | 5,354,366 | 6,223,539 |
Net asset value per share | $10.30 | $8.53 | $10.39 |
R Class, $0.01 Par Value | |||
Net assets | $32,358,156 | $9,996,418 | $22,806,676 |
Shares outstanding | 3,141,481 | 1,171,229 | 2,194,232 |
Net asset value per share | $10.30 | $8.53 | $10.39 |
See Notes to Financial Statements. |
32
JANUARY 31, 2010 (UNAUDITED) | |||
LIVESTRONG | LIVESTRONG | LIVESTRONG | |
2040 Portfolio | 2045 Portfolio | 2050 Portfolio | |
Assets | |||
Investment securities in affiliates, at value | |||
(cost of $70,054,254, $186,802,357 | |||
and $18,579,226, respectively) | $76,911,528 | $186,385,169 | $19,884,360 |
Cash | 16,387 | 33,767 | 3,911 |
Receivable for capital shares sold | 176,697 | 497,730 | 133,848 |
Distributions receivable from affiliates | 38,091 | 83,187 | 7,225 |
77,142,703 | 186,999,853 | 20,029,344 | |
Liabilities | |||
Payable for investments purchased | 193,122 | 433,301 | 138,622 |
Payable for capital shares redeemed | 19,880 | 144,620 | 1,985 |
Accrued administrative fees | 10,619 | 25,366 | 2,415 |
Distribution and service fees payable | 7,524 | 11,947 | 1,914 |
231,145 | 615,234 | 144,936 | |
Net Assets | $76,911,558 | $186,384,619 | $19,884,408 |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $70,809,194 | $198,580,648 | $18,899,755 |
Undistributed net investment income | 23,307 | 53,197 | 3,442 |
Accumulated net realized loss on investment transactions | (778,217) | (11,832,038) | (323,923) |
Net unrealized appreciation (depreciation) on investments | 6,857,274 | (417,188) | 1,305,134 |
$76,911,558 | $186,384,619 | $19,884,408 | |
Investor Class, $0.01 Par Value | |||
Net assets | $32,098,500 | $100,740,270 | $6,850,591 |
Shares outstanding | 3,867,805 | 9,794,889 | 853,164 |
Net asset value per share | $8.30 | $10.28 | $8.03 |
Institutional Class, $0.01 Par Value | |||
Net assets | $14,575,328 | $40,194,464 | $5,228,789 |
Shares outstanding | 1,757,015 | 3,906,659 | 650,975 |
Net asset value per share | $8.30 | $10.29 | $8.03 |
Advisor Class, $0.01 Par Value | |||
Net assets | $24,624,084 | $34,766,475 | $6,447,008 |
Shares outstanding | 2,967,887 | 3,381,836 | 803,295 |
Net asset value per share | $8.30 | $10.28 | $8.03 |
R Class, $0.01 Par Value | |||
Net assets | $5,613,646 | $10,683,410 | $1,358,020 |
Shares outstanding | 677,108 | 1,039,145 | 169,179 |
Net asset value per share | $8.29 | $10.28 | $8.03 |
See Notes to Financial Statements. |
33
Statement of Operations |
FOR THE SIX MONTHS ENDED JANUARY 31, 2010 (UNAUDITED) | |||
LIVESTRONG | LIVESTRONG | LIVESTRONG | |
Income Portfolio | 2015 Portfolio | 2020 Portfolio | |
Investment Income (Loss) | |||
Income: | |||
Income distributions from underlying funds — affiliates | $2,733,498 | $ 5,584,578 | $2,225,692 |
Expenses: | |||
Administrative fees: | |||
Investor Class | 99,606 | 239,638 | 102,494 |
Advisor Class | 47,678 | 60,538 | 26,573 |
R Class | 7,589 | 20,517 | 7,542 |
Distribution and service fees: | |||
Advisor Class | 59,598 | 75,672 | 33,216 |
R Class | 18,973 | 51,294 | 18,855 |
Directors’ fees and expenses | 4,165 | 8,287 | 3,188 |
237,609 | 455,946 | 191,868 | |
Net investment income (loss) | 2,495,889 | 5,128,632 | 2,033,824 |
Net Realized and Unrealized Gain (Loss) on Affiliates | |||
Net realized gain (loss) on: | |||
Sale of investments in underlying funds | (74,180) | (3,421,945) | 198,828 |
Change in net unrealized appreciation (depreciation) | |||
on investments in underlying funds | 7,370,137 | 20,244,657 | 6,661,421 |
Net realized and unrealized gain (loss) on affiliates | 7,295,957 | 16,822,712 | 6,860,249 |
Net Increase (Decrease) in Net Assets | |||
Resulting from Operations | $9,791,846 | $21,951,344 | $8,894,073 |
See Notes to Financial Statements. |
34
FOR THE SIX MONTHS ENDED JANUARY 31, 2010 (UNAUDITED) | |||
LIVESTRONG | LIVESTRONG | LIVESTRONG | |
2025 Portfolio | 2030 Portfolio | 2035 Portfolio | |
Investment Income (Loss) | |||
Income: | |||
Income distributions from underlying funds — affiliates | $ 6,491,653 | $1,469,122 | $ 3,316,743 |
Expenses: | |||
Administrative fees: | |||
Investor Class | 347,727 | 79,926 | 195,654 |
Advisor Class | 70,259 | 23,670 | 50,735 |
R Class | 24,588 | 7,689 | 16,481 |
Distribution and service fees: | |||
Advisor Class | 87,825 | 29,588 | 63,418 |
R Class | 61,468 | 19,223 | 41,202 |
Directors’ fees and expenses | 11,090 | 2,632 | 6,702 |
602,957 | 162,728 | 374,192 | |
Net investment income (loss) | 5,888,696 | 1,306,394 | 2,942,551 |
Net Realized and Unrealized Gain (Loss) on Affiliates | |||
Net realized gain (loss) on: | |||
Sale of investments in underlying funds | (6,966,185) | 173,936 | (5,089,107) |
Change in net unrealized appreciation (depreciation) | |||
on investments in underlying funds | 34,536,692 | 6,137,747 | 23,528,769 |
Net realized and unrealized gain (loss) on affiliates | 27,570,507 | 6,311,683 | 18,439,662 |
Net Increase (Decrease) in Net Assets | |||
Resulting from Operations | $33,459,203 | $7,618,077 | $21,382,213 |
See Notes to Financial Statements. |
35
FOR THE SIX MONTHS ENDED JANUARY 31, 2010 (UNAUDITED) | |||
LIVESTRONG | LIVESTRONG | LIVESTRONG | |
2040 Portfolio | 2045 Portfolio | 2050 Portfolio | |
Investment Income (Loss) | |||
Income: | |||
Income distributions from underlying funds — affiliates | $ 602,249 | $ 1,648,423 | $123,997 |
Expenses: | |||
Administrative fees: | |||
Investor Class | 29,513 | 96,907 | 4,773 |
Advisor Class | 12,827 | 27,643 | 3,559 |
R Class | 4,618 | 7,960 | 908 |
Distribution and service fees: | |||
Advisor Class | 16,034 | 34,553 | 4,449 |
R Class | 11,545 | 19,900 | 2,271 |
Directors’ fees and expenses | 1,194 | 3,621 | 265 |
75,731 | 190,584 | 16,225 | |
Net investment income (loss) | 526,518 | 1,457,839 | 107,772 |
Net Realized and Unrealized Gain (Loss) on Affiliates | |||
Net realized gain (loss) on: | |||
Sale of investments in underlying funds | 18,775 | (2,839,781) | (23,808) |
Change in net unrealized appreciation (depreciation) | |||
on investments in underlying funds | 2,778,723 | 13,767,476 | 537,011 |
Net realized and unrealized gain (loss) on affiliates | 2,797,498 | 10,927,695 | 513,203 |
Net Increase (Decrease) in Net Assets | |||
Resulting from Operations | $3,324,016 | $12,385,534 | $620,975 |
See Notes to Financial Statements. |
36
Statement of Changes in Net Assets |
SIX MONTHS ENDED JANUARY 31, 2010 (UNAUDITED) AND YEAR ENDED JULY 31, 2009 | ||||
LIVESTRONG Income Portfolio | LIVESTRONG 2015 Portfolio | |||
Increase (Decrease) in Net Assets | 2010 | 2009 | 2010 | 2009 |
Operations | ||||
Net investment income (loss) | $ 2,495,889 | $ 2,613,786 | $ 5,128,632 | $ 6,716,232 |
Net realized gain (loss) | (74,180) | (12,223,837) | (3,421,945) | (17,104,784) |
Change in net unrealized | ||||
appreciation (depreciation) | 7,370,137 | 9,836,410 | 20,244,657 | 1,797,021 |
Net increase (decrease) in net assets | ||||
resulting from operations | 9,791,846 | 226,359 | 21,951,344 | (8,591,531) |
Distributions to Shareholders | ||||
From net investment income: | ||||
Investor Class | (1,382,523) | (1,891,448) | (4,463,573) | (5,150,679) |
Institutional Class | (428,173) | (380,646) | (1,368,794) | (667,576) |
Advisor Class | (596,106) | (249,615) | (1,134,136) | (842,999) |
R Class | (82,098) | (36,296) | (317,118) | (170,136) |
From net realized gains: | ||||
Investor Class | — | (405,727) | — | (1,965,341) |
Institutional Class | — | (79,352) | — | (241,939) |
Advisor Class | — | (72,879) | — | (344,341) |
R Class | — | (12,048) | — | (74,791) |
Decrease in net assets from distributions | (2,488,900) | (3,128,011) | (7,283,621) | (9,457,802) |
Capital Share Transactions | ||||
Net increase (decrease) in net assets | ||||
from capital share transactions | 31,634,223 | 93,346,171 | 80,244,365 | 140,167,568 |
Net increase (decrease) in net assets | 38,937,169 | 90,444,519 | 94,912,088 | 122,118,235 |
Net Assets | ||||
Beginning of period | 158,196,792 | 67,752,273 | 330,349,962 | 208,231,727 |
End of period | $197,133,961 | $158,196,792 | $425,262,050 | $330,349,962 |
Undistributed net investment income | $158,668 | $151,679 | $333,875 | $2,488,864 |
See Notes to Financial Statements. |
37
SIX MONTHS ENDED JANUARY 31, 2010 (UNAUDITED) AND YEAR ENDED JULY 31, 2009 | ||||
LIVESTRONG 2020 Portfolio | LIVESTRONG 2025 Portfolio | |||
Increase (Decrease) in Net Assets | 2010 | 2009 | 2010 | 2009 |
Operations | ||||
Net investment income (loss) | $ 2,033,824 | $ 998,442 | $ 5,888,696 | $ 7,970,000 |
Net realized gain (loss) | 198,828 | (2,265,500) | (6,966,185) | (18,294,566) |
Change in net unrealized | ||||
appreciation (depreciation) | 6,661,421 | 9,783,711 | 34,536,692 | (8,435,503) |
Net increase (decrease) in net assets | ||||
resulting from operations | 8,894,073 | 8,516,653 | 33,459,203 | (18,760,069) |
Distributions to Shareholders | ||||
From net investment income: | ||||
Investor Class | (1,688,609) | (71,188) | (5,629,796) | (5,950,462) |
Institutional Class | (522,929) | (11,369) | (1,558,390) | (1,225,708) |
Advisor Class | (468,137) | (12,872) | (1,074,979) | (799,325) |
R Class | (104,320) | (11,706) | (308,725) | (135,485) |
From net realized gains: | ||||
Investor Class | (128,380) | — | — | (3,244,442) |
Institutional Class | (35,286) | — | — | (624,145) |
Advisor Class | (42,315) | — | — | (471,571) |
R Class | (11,626) | — | — | (87,038) |
Decrease in net assets from distributions | (3,001,602) | (107,135) | (8,571,890) | (12,538,176) |
Capital Share Transactions | ||||
Net increase (decrease) in net assets | ||||
from capital share transactions | 69,163,927 | 110,507,216 | 85,532,619 | 198,757,669 |
Net increase (decrease) in net assets | 75,056,398 | 118,916,734 | 110,419,932 | 167,459,424 |
Net Assets | ||||
Beginning of period | 120,017,552 | 1,100,818 | 457,913,675 | 290,454,251 |
End of period | $195,073,950 | $120,017,552 | $568,333,607 | $457,913,675 |
Undistributed net investment income | $141,925 | $892,096 | $374,556 | $3,057,750 |
See Notes to Financial Statements. |
38
SIX MONTHS ENDED JANUARY 31, 2010 (UNAUDITED) AND YEAR ENDED JULY 31, 2009 | ||||
LIVESTRONG 2030 Portfolio | LIVESTRONG 2035 Portfolio | |||
Increase (Decrease) in Net Assets | 2010 | 2009 | 2010 | 2009 |
Operations | ||||
Net investment income (loss) | $ 1,306,394 | $ 672,384 | $ 2,942,551 | $ 3,920,540 |
Net realized gain (loss) | 173,936 | (1,795,860) | (5,089,107) | (11,046,566) |
Change in net unrealized | ||||
appreciation (depreciation) | 6,137,747 | 8,609,759 | 23,528,769 | (10,372,689) |
Net increase (decrease) in net assets | ||||
resulting from operations | 7,618,077 | 7,486,283 | 21,382,213 | (17,498,715) |
Distributions to Shareholders | ||||
From net investment income: | ||||
Investor Class | (1,067,106) | (36,634) | (2,690,080) | (2,790,828) |
Institutional Class | (337,882) | (8,184) | (813,193) | (561,509) |
Advisor Class | (347,879) | (5,403) | (639,672) | (435,681) |
R Class | (73,615) | (15,299) | (156,330) | (73,773) |
From net realized gains: | ||||
Investor Class | (121,629) | — | — | (2,117,074) |
Institutional Class | (33,243) | — | — | (396,869) |
Advisor Class | (49,531) | — | — | (363,962) |
R Class | (13,939) | — | — | (68,580) |
Decrease in net assets from distributions | (2,044,824) | (65,520) | (4,299,275) | (6,808,276) |
Capital Share Transactions | ||||
Net increase (decrease) in net assets | ||||
from capital share transactions | 62,013,581 | 86,795,822 | 67,512,172 | 110,729,046 |
Net increase (decrease) in net assets | 67,586,834 | 94,216,585 | 84,595,110 | 86,422,055 |
Net Assets | ||||
Beginning of period | 94,860,575 | 643,990 | 260,680,225 | 174,258,170 |
End of period | $162,447,409 | $94,860,575 | $345,275,335 | $260,680,225 |
Undistributed net investment income | $87,062 | $607,150 | $153,298 | $1,510,022 |
See Notes to Financial Statements. |
39
SIX MONTHS ENDED JANUARY 31, 2010 (UNAUDITED) AND YEAR ENDED JULY 31, 2009 | ||||
LIVESTRONG 2040 Portfolio | LIVESTRONG 2045 Portfolio | |||
Increase (Decrease) in Net Assets | 2010 | 2009 | 2010 | 2009 |
Operations | ||||
Net investment income (loss) | $ 526,518 | $ 232,457 | $ 1,457,839 | $ 2,149,994 |
Net realized gain (loss) | 18,775 | (754,318) | (2,839,781) | (7,438,967) |
Change in net unrealized | ||||
appreciation (depreciation) | 2,778,723 | 4,078,190 | 13,767,476 | (10,606,884) |
Net increase (decrease) in net assets | ||||
resulting from operations | 3,324,016 | 3,556,329 | 12,385,534 | (15,895,857) |
Distributions to Shareholders | ||||
From net investment income: | ||||
Investor Class | (344,746) | (16,296) | (1,209,259) | (1,472,652) |
Institutional Class | (176,416) | (1,179) | (562,617) | (568,816) |
Advisor Class | (151,094) | (2,891) | (312,014) | (216,154) |
R Class | (32,698) | (10,677) | (65,021) | (30,172) |
From net realized gains: | ||||
Investor Class | (19,542) | — | — | (1,312,952) |
Institutional Class | (8,431) | — | — | (470,646) |
Advisor Class | (11,184) | — | — | (213,458) |
R Class | (3,480) | — | — | (33,394) |
Decrease in net assets from distributions | (747,591) | (31,043) | (2,148,911) | (4,318,244) |
Capital Share Transactions | ||||
Net increase (decrease) in net assets | ||||
from capital share transactions | 36,205,874 | 33,755,308 | 33,910,737 | 45,933,636 |
Net increase (decrease) in net assets | 38,782,299 | 37,280,594 | 44,147,360 | 25,719,535 |
Net Assets | ||||
Beginning of period | 38,129,259 | 848,665 | 142,237,259 | 116,517,724 |
End of period | $76,911,558 | $38,129,259 | $186,384,619 | $142,237,259 |
Undistributed net investment income | $23,307 | $201,743 | $53,197 | $744,269 |
See Notes to Financial Statements. |
40
SIX MONTHS ENDED JANUARY 31, 2010 (UNAUDITED) AND YEAR ENDED JULY 31, 2009 | ||
LIVESTRONG 2050 Portfolio | ||
Increase (Decrease) in Net Assets | 2010 | 2009 |
Operations | ||
Net investment income (loss) | $ 107,772 | $ 51,261 |
Net realized gain (loss) | (23,808) | (294,289) |
Change in net unrealized appreciation (depreciation) | 537,011 | 786,829 |
Net increase (decrease) in net assets resulting from operations | 620,975 | 543,801 |
Distributions to Shareholders | ||
From net investment income: | ||
Investor Class | (47,343) | (8,507) |
Institutional Class | (51,865) | (10,356) |
Advisor Class | (32,082) | (179) |
R Class | (5,224) | (502) |
From net realized gains: | ||
Investor Class | (1,689) | — |
Institutional Class | (1,512) | — |
Advisor Class | (1,587) | — |
R Class | (422) | — |
Decrease in net assets from distributions | (141,724) | (19,544) |
Capital Share Transactions | ||
Net increase (decrease) in net assets from capital share transactions | 12,249,426 | 6,149,716 |
Net increase (decrease) in net assets | 12,728,677 | 6,673,973 |
Net Assets | ||
Beginning of period | 7,155,731 | 481,758 |
End of period | $19,884,408 | $7,155,731 |
Undistributed net investment income | $3,442 | $32,184 |
See Notes to Financial Statements. |
41
Notes to Financial Statements |
JANUARY 31, 2010 (UNAUDITED)
1. Organization and Summary of Significant Accounting Policies
Organization — American Century Asset Allocation Portfolios, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act), as amended, as an open-end management investment company. LIVESTRONG Income Portfolio, LIVESTRONG 2015 Portfolio, LIVESTRONG 2020 Portfolio, LIVESTRONG 2025 Portfolio, LIVESTRONG 2030 Portfolio, LIVESTRONG 2035 Portfolio, LIVESTRONG 2040 Portfolio, LIVESTRONG 2045 Portfolio and LIVESTRONG 2050 Portfo lio (collectively, the funds) are nine funds in a series issued by the corporation. The funds operate as “fund of funds,” meaning substantially all of the funds’ assets will be invested in other funds in the American Century Investments family of funds (the underlying funds). The funds are diversified under the 1940 Act. Additionally, the underlying funds are generally diversified and so indirectly provide broad exposure to a large number of securities. The investment objective of LIVESTRONG Income Portfolio is to seek current income. Capital appreciation is a secondary objective. The investment objectives of the eight target-year LIVESTRONG Portfolios are to seek the highest total retur n consistent with their respective asset mix. The funds pursue their objectives by investing in underlying funds that represent a variety of asset classes and investment styles. For each fund with a target-year, the target asset mix will be adjusted annually in a step-like fashion. In general, as the target-year approaches, the allocation to stocks will decrease and the allocation to bonds and money market instruments will increase. When a fund reaches its most conservative planned target asset allocation, which is expected to occur on approximately November 30 of the year before the target year, its target asset mix will become fixed and will match that of LIVESTRONG Income Portfolio. The following is a summary of the funds’ significant accounting policies.
Multiple Class — The funds are authorized to issue the Investor Class, Institutional Class, Advisor Class (renamed A Class effective March 1, 2010) and R Class. The share classes differ principally in their respective distribution and shareholder servicing expenses and arrangements. All shares of each fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the funds are allocated to each class of shares based on their relative net assets.
Underlying Funds — Each fund’s assets are allocated among underlying funds that represent major asset classes, including equity securities (stocks), fixed-income securities (bonds) and cash-equivalent instruments (money markets). The underlying funds are not permitted to invest in securities issued by companies assigned the Global Industry Classification Standard (GICS) for the tobacco industry. A brief description of each of the underlying funds follows.
Domestic Equity Funds
NT Equity Growth Fund seeks long-term capital growth. It uses a quantitative investment strategy to construct an optimized portfolio drawn primarily from large publicly traded U.S. companies without regard to dividend yield.
NT Growth Fund seeks long-term capital growth. It uses a growth investment strategy and generally invests in larger U.S. companies.
NT Large Company Value Fund seeks long-term capital growth with income as a secondary objective. It uses a value investment strategy and invests primarily in larger U.S. companies.
NT Mid Cap Value Fund seeks long-term capital growth with income as a secondary objective. It uses a value investment strategy and invests primarily in medium-sized U.S. companies.
42
NT Small Company Fund seeks long-term capital growth. It uses a quantitative investment strategy and invests primarily in smaller U.S. companies.
NT Vista Fund seeks long-term capital growth. It uses a growth investment strategy and generally invests in medium-sized and smaller U.S. companies.
Real Estate Fund seeks high total investment return through a combination of capital appreciation and current income. It invests primarily in equity securities issued by real estate investment trusts and companies engaged in the real estate industry.
International Equity Funds
NT Emerging Markets Fund seeks capital growth. It uses a growth investment strategy and invests primarily in securities of companies located in emerging market countries.
NT International Growth Fund seeks capital growth. It uses a growth investment strategy and invests primarily in securities of companies located in developed countries other than the United States.
Domestic Fixed Income Funds
High-Yield Fund seeks high current income by investing in a diversified portfolio of high-yield corporate bonds and other debt securities. As a secondary objective, the fund seeks capital appreciation, but only when consistent with its primary objective of maximizing current income.
Inflation-Adjusted Bond Fund seeks to provide total return and inflation protection consistent with investment in inflation-indexed securities.
NT Diversified Bond Fund seeks a high level of income by investing primarily in high- and medium-grade non-money market debt securities. These securities, which may be payable in U.S. or foreign currencies, may include corporate bonds and notes, government securities and securities backed by mortgages or other assets.
International Fixed Income Funds
International Bond Fund seeks high total return by investing in high-quality, non-dollar-denominated government and corporate debt securities outside the United States.
Money Market Funds
Premium Money Market Fund seeks to earn the highest level of current income while preserving the value of shareholder investments by investing in high-quality, very short-term debt securities.
Security Valuations — Investments in the underlying funds are valued at their reported net asset value. The underlying funds have specific valuation policies. If an event occurs after the value of a security was established but before the net asset value per share of an underlying fund was determined that was likely to materially change the net asset value of the underlying fund, that security would be valued as determined in accordance with procedures adopted by the Board of Directors / Trustees. If the underlying fund determines that the market price of a portfolio security is not readily available, or that the valuation methods mentioned above do not reflect the security’s fair value, such security is valued as determined by the Board of Directors / Trustees or its designee, in accordance with procedures adopted b y the Board of Directors / Trustees, if such determination would materially impact an underlying fund’s net asset value. Certain other circumstances may cause the underlying fund to use alternative procedures to value a security such as: a security has been declared in default; trading in a security has been halted during the trading day; or there is a foreign market holiday and no trading will commence.
43
Security Transactions — For financial reporting purposes, security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Income and capital gain distributions, if any, from the underlying funds are recorded as of the ex-dividend date. Long-term capital gain distributions, if any, from the underlying funds are a component of net realized gain (loss).
Expenses — The expenses included in the accompanying financial statements reflect the expenses of each fund and do not include any expenses associated with the underlying funds.
Income Tax Status — It is each fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. LIVESTRONG Income Portfolio, LIVESTRONG 2015 Portfolio, LIVESTRONG 2025 Portfolio, LIVESTRONG 2035 Portfolio, and LIVESTRONG 2045 Portfolio are no longer subject to examination by tax authorities for years prior to 2006. For LIVESTRONG 2020 Portfolio, LIVESTRONG 2030 Portfolio, LIVESTRONG 2040 Portfolio, and LIVESTRONG 2050 Portfolio all tax years remain subject to examination by tax authorities. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Accordingly, no provision has been made for federal or state income taxes. Interest and penalties associated with any federal or state income tax obligations, if any, are recorded as interest expense.
Distributions to Shareholders — Distributions to shareholders are recorded on the ex-dividend date. Distributions from net investment income, if any, are generally declared and paid quarterly for LIVESTRONG Income Portfolio. Distributions from net investment income, if any, are generally declared and paid annually for the eight target-date LIVESTRONG Portfolios. Distributions from net realized gains, if any, are generally declared and paid annually for all funds.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business, the funds enter into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Use of Estimates — The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates.
Subsequent Events — Management has evaluated events or transactions that may have occurred since January 31, 2010, that would merit recognition or disclosure in the financial statements. This evaluation was completed through March 26, 2010, the date the financial statements were issued.
44
2. Fees and Transactions with Related Parties
Administrative Fees — The corporation has entered into a Management Agreement with American Century Investment Management, Inc. (ACIM), under which ACIM provides the funds with shareholder services in exchange for an administrative fee (the fee). The fee is computed and accrued daily based on the daily net assets of each specific class of shares of each fund and paid monthly in arrears. The rate of the fee for the Investor Class, Advisor Class and R Class of the funds is 0.20%. There is no administrative fee for the Institutional Class.
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the Advisor Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the Advisor Class will pay American Century Investment Services, Inc. (ACIS) an annual distribution and service fee of 0.25%. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. These fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the six months ended January 31, 2010, are detailed in the Statement of Operations.
Management Fees — Each fund will indirectly realize its pro rata share of the fees and expenses of the underlying funds in which it invests. These fees and expenses are already reflected in the valuation of the underlying funds.
Related Parties — Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC), the parent of the corporation’s investment advisor, ACIM, the distributor of the corporation, ACIS, and the corporation’s transfer agent, American Century Services, LLC. The directors of the corporation are also directors of some underlying funds and therefore those underlying funds may be deemed to be under common control with the corporation. The officers of the corporation are also officers of all the underlying funds. ACIM or American Century Global Investment Management, Inc., a wholly-owned subsidiary of ACIM, serves as the investment advisor for the underlying funds.
The funds have a Mutual Funds Services Agreement with J.P. Morgan Investor Services Co. (JPMIS). JPMIS is a wholly owned subsidiary of JPMorgan Chase & Co. (JPM). JPM is an equity investor in ACC.
3. Investment Transactions
Investment transactions for the six months ended January 31, 2010, were as follows:
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | |
Income Portfolio | 2015 Portfolio | 2020 Portfolio | 2025 Portfolio | 2030 Portfolio | |
Purchases | $45,312,673 | $97,133,367 | $77,153,618 | $107,532,311 | $67,323,676 |
Sales | $13,680,986 | $19,062,805 | $8,963,935 | $24,709,828 | $6,052,263 |
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | ||
2035 Portfolio | 2040 Portfolio | 2045 Portfolio | 2050 Portfolio | ||
Purchases | $80,462,567 | $37,214,431 | $41,026,469 | $13,370,013 | |
Sales | $14,315,151 | $1,230,595 | $7,809,120 | $1,154,666 |
45
4. Capital Share Transactions
The corporation is authorized to issue 3,000,000,000 shares. Transactions in shares of the funds were as follows:
Six months ended January 31, 2010 | Year ended July 31, 2009 | |||
Shares | Amount | Shares | Amount | |
LIVESTRONG Income Portfolio | ||||
Investor Class | ||||
Sold | 1,021,149 | $ 10,179,268 | 18,698,026 | $ 167,113,157 |
Issued in reinvestment of distributions | 135,506 | 1,364,467 | 248,479 | 2,248,041 |
Redeemed | (1,310,189) | (13,082,082) | (13,569,378) | (119,654,444) |
(153,534) | (1,538,347) | 5,377,127 | 49,706,754 | |
Institutional Class | ||||
Sold | 867,550 | 8,799,421 | 2,203,254 | 19,476,461 |
Issued in reinvestment of distributions | 42,491 | 428,173 | 50,835 | 459,998 |
Redeemed | (577,452) | (5,777,266) | (536,074) | (4,816,742) |
332,589 | 3,450,328 | 1,718,015 | 15,119,717 | |
Advisor Class | ||||
Sold | 3,141,902 | 31,329,605 | 3,611,889 | 32,498,100 |
Issued in reinvestment of distributions | 57,425 | 578,873 | 35,451 | 321,543 |
Redeemed | (849,006) | (8,509,025) | (835,727) | (7,366,830) |
2,350,321 | 23,399,453 | 2,811,613 | 25,452,813 | |
R Class | ||||
Sold | 772,751 | 7,639,808 | 406,615 | 3,736,252 |
Issued in reinvestment of distributions | 8,010 | 80,907 | 5,385 | 47,928 |
Redeemed | (138,870) | (1,397,926) | (80,992) | (717,293) |
641,891 | 6,322,789 | 331,008 | 3,066,887 | |
Net increase (decrease) | 3,171,267 | $ 31,634,223 | 10,237,763 | $ 93,346,171 |
LIVESTRONG 2015 Portfolio | ||||
Investor Class | ||||
Sold | 3,950,822 | $ 41,192,584 | 22,036,378 | $ 202,222,781 |
Issued in reinvestment of distributions | 420,671 | 4,438,085 | 786,589 | 7,063,567 |
Redeemed | (2,322,591) | (24,148,785) | (15,032,106) | (136,940,716) |
2,048,902 | 21,481,884 | 7,790,861 | 72,345,632 | |
Institutional Class | ||||
Sold | 1,126,739 | 11,763,661 | 5,289,808 | 48,352,553 |
Issued in reinvestment of distributions | 129,621 | 1,368,794 | 101,282 | 909,515 |
Redeemed | (601,504) | (6,253,869) | (937,904) | (8,499,045) |
654,856 | 6,878,586 | 4,453,186 | 40,763,023 | |
Advisor Class | ||||
Sold | 4,054,346 | 42,237,863 | 2,828,051 | 26,297,380 |
Issued in reinvestment of distributions | 99,377 | 1,048,428 | 130,939 | 1,175,836 |
Redeemed | (635,027) | (6,632,227) | (1,005,660) | (9,384,716) |
3,518,696 | 36,654,064 | 1,953,330 | 18,088,500 | |
R Class | ||||
Sold | 1,723,840 | 17,982,784 | 1,828,044 | 16,821,336 |
Issued in reinvestment of distributions | 27,956 | 295,219 | 26,161 | 234,927 |
Redeemed | (293,137) | (3,048,172) | (868,132) | (8,085,850) |
1,458,659 | 15,229,831 | 986,073 | 8,970,413 | |
Net increase (decrease) | 7,681,113 | $ 80,244,365 | 15,183,450 | $ 140,167,568 |
46
Six months ended January 31, 2010 | Year ended July 31, 2009 | |||
Shares | Amount | Shares | Amount | |
LIVESTRONG 2020 Portfolio | ||||
Investor Class | ||||
Sold | 2,365,877 | $ 21,083,394 | 27,157,029 | $ 210,655,998 |
Issued in reinvestment of distributions | 198,914 | 1,814,093 | 9,330 | 71,188 |
Redeemed | (1,324,643) | (11,803,049) | (16,496,812) | (126,304,813) |
1,240,148 | 11,094,438 | 10,669,547 | 84,422,373 | |
Institutional Class | ||||
Sold | 968,557 | 8,847,477 | 2,804,118 | 21,239,817 |
Issued in reinvestment of distributions | 61,208 | 558,215 | 1,490 | 11,369 |
Redeemed | (268,435) | (2,420,621) | (266,680) | (2,037,321) |
761,330 | 6,985,071 | 2,538,928 | 19,213,865 | |
Advisor Class | ||||
Sold | 5,535,973 | 49,316,765 | 485,585 | 3,886,194 |
Issued in reinvestment of distributions | 55,971 | 510,452 | 1,687 | 12,872 |
Redeemed | (677,681) | (6,040,477) | (28,684) | (226,837) |
4,914,263 | 43,786,740 | 458,588 | 3,672,229 | |
R Class | ||||
Sold | 886,166 | 7,853,958 | 441,491 | 3,608,622 |
Issued in reinvestment of distributions | 12,710 | 115,916 | 1,534 | 11,706 |
Redeemed | (74,973) | (672,196) | (55,883) | (421,579) |
823,903 | 7,297,678 | 387,142 | 3,198,749 | |
Net increase (decrease) | 7,739,644 | $ 69,163,927 | 14,054,205 | $ 110,507,216 |
LIVESTRONG 2025 Portfolio | ||||
Investor Class | ||||
Sold | 4,961,403 | $ 51,477,705 | 32,596,486 | $ 293,192,970 |
Issued in reinvestment of distributions | 529,921 | 5,611,859 | 1,046,971 | 9,161,018 |
Redeemed | (3,003,097) | (31,195,650) | (19,969,203) | (177,575,845) |
2,488,227 | 25,893,914 | 13,674,254 | 124,778,143 | |
Institutional Class | ||||
Sold | 910,924 | 9,482,402 | 5,025,377 | 44,620,828 |
Issued in reinvestment of distributions | 147,157 | 1,558,390 | 211,413 | 1,849,853 |
Redeemed | (494,110) | (5,118,222) | (1,078,207) | (9,830,657) |
563,971 | 5,922,570 | 4,158,583 | 36,640,024 | |
Advisor Class | ||||
Sold | 4,461,696 | 46,409,981 | 3,796,789 | 34,330,412 |
Issued in reinvestment of distributions | 92,438 | 979,846 | 144,407 | 1,263,560 |
Redeemed | (849,639) | (8,834,368) | (1,254,939) | (11,345,728) |
3,704,495 | 38,555,459 | 2,686,257 | 24,248,244 | |
R Class | ||||
Sold | 1,708,433 | 17,716,087 | 1,610,391 | 14,596,950 |
Issued in reinvestment of distributions | 26,847 | 284,574 | 23,819 | 208,417 |
Redeemed | (273,974) | (2,839,985) | (190,859) | (1,714,109) |
1,461,306 | 15,160,676 | 1,443,351 | 13,091,258 | |
Net increase (decrease) | 8,217,999 | $ 85,532,619 | 21,962,445 | $ 198,757,669 |
47
Six months ended January 31, 2010 | Year ended July 31, 2009 | |||
Shares | Amount | Shares | Amount | |
LIVESTRONG 2030 Portfolio | ||||
Investor Class | ||||
Sold | 1,818,725 | $ 15,523,341 | 21,407,615 | $ 156,161,055 |
Issued in reinvestment of distributions | 134,491 | 1,184,869 | 5,047 | 36,137 |
Redeemed | (885,071) | (7,542,624) | (12,730,080) | (91,576,604) |
1,068,145 | 9,165,586 | 8,682,582 | 64,620,588 | |
Institutional Class | ||||
Sold | 673,441 | 5,867,820 | 2,368,824 | 16,803,262 |
Issued in reinvestment of distributions | 42,125 | 371,125 | 1,145 | 8,184 |
Redeemed | (209,820) | (1,818,359) | (192,452) | (1,365,186) |
505,746 | 4,420,586 | 2,177,517 | 15,446,260 | |
Advisor Class | ||||
Sold | 5,391,230 | 46,142,709 | 467,504 | 3,491,863 |
Issued in reinvestment of distributions | 45,160 | 397,410 | 756 | 5,403 |
Redeemed | (502,822) | (4,252,932) | (48,087) | (351,751) |
4,933,568 | 42,287,187 | 420,173 | 3,145,515 | |
R Class | ||||
Sold | 810,848 | 6,870,614 | 511,522 | 4,063,426 |
Issued in reinvestment of distributions | 9,934 | 87,520 | 2,140 | 15,299 |
Redeemed | (95,224) | (817,912) | (68,616) | (495,266) |
725,558 | 6,140,222 | 445,046 | 3,583,459 | |
Net increase (decrease) | 7,233,017 | $ 62,013,581 | 11,725,318 | $ 86,795,822 |
LIVESTRONG 2035 Portfolio | ||||
Investor Class | ||||
Sold | 3,600,161 | $ 37,528,499 | 15,299,408 | $ 136,512,600 |
Issued in reinvestment of distributions | 249,330 | 2,685,287 | 568,003 | 4,896,188 |
Redeemed | (1,819,628) | (19,090,869) | (9,015,703) | (79,453,689) |
2,029,863 | 21,122,917 | 6,851,708 | 61,955,099 | |
Institutional Class | ||||
Sold | 816,349 | 8,628,910 | 3,274,007 | 28,605,892 |
Issued in reinvestment of distributions | 75,506 | 813,193 | 111,052 | 958,378 |
Redeemed | (389,958) | (4,112,636) | (604,926) | (5,288,948) |
501,897 | 5,329,467 | 2,780,133 | 24,275,322 | |
Advisor Class | ||||
Sold | 3,359,257 | 35,058,842 | 2,405,740 | 21,576,278 |
Issued in reinvestment of distributions | 51,157 | 550,959 | 91,719 | 791,531 |
Redeemed | (567,409) | (5,967,152) | (700,595) | (6,258,117) |
2,843,005 | 29,642,649 | 1,796,864 | 16,109,692 | |
R Class | ||||
Sold | 1,261,754 | 13,259,142 | 1,031,714 | 9,297,204 |
Issued in reinvestment of distributions | 12,538 | 135,037 | 15,842 | 136,697 |
Redeemed | (189,775) | (1,977,040) | (118,195) | (1,044,968) |
1,084,517 | 11,417,139 | 929,361 | 8,388,933 | |
Net increase (decrease) | 6,459,282 | $ 67,512,172 | 12,358,066 | $110,729,046 |
48
Six months ended January 31, 2010 | Year ended July 31, 2009 | |||
Shares | Amount | Shares | Amount | |
LIVESTRONG 2040 Portfolio | ||||
Investor Class | ||||
Sold | 1,138,749 | $ 9,441,396 | 6,667,507 | $ 46,398,192 |
Issued in reinvestment of distributions | 42,116 | 363,457 | 2,393 | 16,296 |
Redeemed | (461,265) | (3,837,347) | (3,611,169) | (24,864,481) |
719,600 | 5,967,506 | 3,058,731 | 21,550,007 | |
Institutional Class | ||||
Sold | 561,321 | 4,783,489 | 1,366,315 | 9,109,351 |
Issued in reinvestment of distributions | 21,419 | 184,847 | 173 | 1,179 |
Redeemed | (96,021) | (803,529) | (96,817) | (658,594) |
486,719 | 4,164,807 | 1,269,671 | 8,451,936 | |
Advisor Class | ||||
Sold | 3,062,080 | 25,452,818 | 221,418 | 1,546,579 |
Issued in reinvestment of distributions | 18,804 | 162,278 | 424 | 2,891 |
Redeemed | (313,580) | (2,569,010) | (21,884) | (151,240) |
2,767,304 | 23,046,086 | 199,958 | 1,398,230 | |
R Class | ||||
Sold | 444,666 | 3,625,210 | 360,415 | 2,744,768 |
Issued in reinvestment of distributions | 4,165 | 35,945 | 1,568 | 10,677 |
Redeemed | (75,812) | (633,680) | (58,519) | (400,310) |
373,019 | 3,027,475 | 303,464 | 2,355,135 | |
Net increase (decrease) | 4,346,642 | $ 36,205,874 | 4,831,824 | $ 33,755,308 |
LIVESTRONG 2045 Portfolio | ||||
Investor Class | ||||
Sold | 1,945,816 | $ 20,162,143 | 5,655,690 | $ 49,850,208 |
Issued in reinvestment of distributions | 112,215 | 1,202,947 | 328,649 | 2,767,177 |
Redeemed | (1,137,026) | (11,776,967) | (3,046,344) | (26,737,712) |
921,005 | 9,588,123 | 2,937,995 | 25,879,673 | |
Institutional Class | ||||
Sold | 583,607 | 6,085,225 | 1,773,404 | 15,431,701 |
Issued in reinvestment of distributions | 52,483 | 562,617 | 123,451 | 1,039,462 |
Redeemed | (336,682) | (3,509,486) | (823,627) | (7,441,026) |
299,408 | 3,138,356 | 1,073,228 | 9,030,137 | |
Advisor Class | ||||
Sold | 1,997,015 | 20,461,372 | 1,094,726 | 9,314,758 |
Issued in reinvestment of distributions | 26,822 | 287,269 | 50,634 | 426,339 |
Redeemed | (473,842) | (4,958,117) | (247,353) | (2,181,953) |
1,549,995 | 15,790,524 | 898,007 | 7,559,144 | |
R Class | ||||
Sold | 670,954 | 6,943,931 | 502,089 | 4,299,317 |
Issued in reinvestment of distributions | 5,467 | 58,605 | 6,079 | 51,182 |
Redeemed | (156,581) | (1,608,802) | (103,842) | (885,817) |
519,840 | 5,393,734 | 404,326 | 3,464,682 | |
Net increase (decrease) | 3,290,248 | $ 33,910,737 | 5,313,556 | $ 45,933,636 |
49
Six months ended January 31, 2010 | Year ended July 31, 2009 | |||
Shares | Amount | Shares | Amount | |
LIVESTRONG 2050 Portfolio | ||||
Investor Class | ||||
Sold | 598,735 | $ 4,901,268 | 655,827 | $ 4,433,260 |
Issued in reinvestment of distributions | 5,827 | 48,830 | 1,292 | 8,453 |
Redeemed | (214,331) | (1,754,605) | (244,500) | (1,606,061) |
390,231 | 3,195,493 | 412,619 | 2,835,652 | |
Institutional Class | ||||
Sold | 289,742 | 2,356,172 | 493,540 | 3,313,874 |
Issued in reinvestment of distributions | 6,370 | 53,377 | 1,583 | 10,356 |
Redeemed | (70,672) | (566,194) | (70,213) | (482,585) |
225,440 | 1,843,355 | 424,910 | 2,841,645 | |
Advisor Class | ||||
Sold | 892,288 | 7,127,738 | 45,591 | 310,177 |
Issued in reinvestment of distributions | 4,018 | 33,669 | 27 | 179 |
Redeemed | (138,147) | (1,087,940) | (1,107) | (7,497) |
758,159 | 6,073,467 | 44,511 | 302,859 | |
R Class | ||||
Sold | 158,281 | 1,253,069 | 29,516 | 203,431 |
Issued in reinvestment of distributions | 645 | 5,406 | 77 | 502 |
Redeemed | (14,785) | (121,364) | (5,180) | (34,373) |
144,141 | 1,137,111 | 24,413 | 169,560 | |
Net increase (decrease) | 1,517,971 | $12,249,426 | 906,453 | $ 6,149,716 |
50
5. Affiliated Company Transactions
Investments are funds within the American Century Investments family of funds, of which certain funds may be deemed to be under common control because of the same board of directors. A summary of the transactions for each underlying fund during the six months ended January 31, 2010 follows:
July 31, 2009 | January 31, 2010 | ||||||
Share | Purchase | Sales | Realized | Distributions | Share | Market | |
Fund/Underlying Fund Balance | Cost | Cost | Gain (Loss) Received(1) | Balance | Value | ||
LIVESTRONG Income Portfolio | |||||||
NT Equity Growth Fund | |||||||
Institutional Class | 2,787,244 | $ 4,884,974 | $ 2,721,961 | $(239,901) | $ 166,573 | 3,083,049 | $ 25,188,510 |
NT Growth Fund | |||||||
Institutional Class | 1,191,828 | 1,938,550 | 1,035,003 | (480) | 56,084 | 1,286,901 | 12,444,333 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 2,563,045 | 4,018,657 | 1,800,640 | 61,872 | 181,089 | 2,852,295 | 21,363,689 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 826,168 | 1,135,674 | 760,364 | (27,903) | 75,653 | 873,112 | 7,770,697 |
NT Small Company | |||||||
Fund Institutional Class | 545,562 | 711,951 | 417,987 | 18,428 | 17,111 | 589,928 | 3,869,928 |
NT Vista Fund | |||||||
Institutional Class | 531,826 | 873,373 | 370,329 | (9,720) | 530 | 597,050 | 4,633,108 |
Real Estate Fund | |||||||
Institutional Class | 138,750 | 250,506 | 231,078 | 24,030 | 18,434 | 138,998 | 1,880,643 |
High-Yield Fund | |||||||
Institutional Class | 1,118,004 | 1,281,818 | 263,259 | (25,622) | 306,554 | 1,303,092 | 7,583,996 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 1,050,025 | 3,643,183 | 486,755 | 1,684 | 248,208 | 1,324,582 | 15,431,380 |
NT Diversified Bond | |||||||
Fund Institutional Class | 3,920,806 | 14,891,673 | 3,107,509 | (14,378) | 986,893 | 5,044,117 | 53,215,434 |
Premium Money Market | |||||||
Fund Investor Class | 15,019,816 | 5,817,511 | 630,692 | — | 13,242 | 20,206,635 | 20,206,635 |
International Bond Fund | |||||||
Institutional Class | 761,308 | 3,851,433 | 576,552 | 1,533 | 540,021 | 982,155 | 13,985,887 |
NT International Growth | |||||||
Fund Institutional Class | 1,102,468 | 2,013,370 | 1,353,037 | 136,277 | 123,106 | 1,164,397 | 9,559,700 |
$45,312,673 | $13,755,166 | $ (74,180) | $2,733,498 | $197,133,940 | |||
(1) Distributions received includes distributions from net investment income and from capital gains from the underlying funds. |
51
July 31, 2009 | January 31, 2010 | ||||||
Share | Purchase | Sales | Realized | Distributions | Share | Market | |
Fund/Underlying Fund | Balance | Cost | Cost | Gain (Loss) | Received(1) | Balance | Value |
LIVESTRONG 2015 Portfolio | |||||||
NT Equity Growth Fund | |||||||
Institutional Class | 5,557,150 | $ 9,976,495 | $ 2,587,357 | $ (671,790) | $ 343,808 | 6,532,807 | $ 53,373,033 |
NT Growth Fund | |||||||
Institutional Class | 3,048,884 | 5,527,862 | 2,984,771 | (131,821) | 143,292 | 3,330,216 | 32,203,189 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 5,426,807 | 8,745,406 | 2,966,867 | (877,661) | 392,204 | 6,306,583 | 47,236,307 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 2,141,941 | 2,958,366 | 2,637,850 | (343,414) | 196,148 | 2,221,611 | 19,772,338 |
NT Small Company | |||||||
Fund Institutional Class | 1,128,158 | 1,380,127 | 928,245 | (329,131) | 36,571 | 1,253,305 | 8,221,681 |
NT Vista Fund | |||||||
Institutional Class | 1,643,618 | 2,341,466 | 1,249,235 | (304,067) | 1,613 | 1,824,483 | 14,157,988 |
Real Estate Fund | |||||||
Institutional Class | 367,873 | 729,325 | 860,531 | (216,217) | 50,520 | 375,659 | 5,082,666 |
High-Yield Fund | |||||||
Institutional Class | 2,206,883 | 3,072,854 | 167,124 | (22,799) | 619,292 | 2,723,372 | 15,850,025 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 2,088,019 | 7,865,727 | 350,146 | (114) | 514,012 | 2,740,226 | 31,923,633 |
NT Diversified Bond | |||||||
Fund Institutional Class | 7,755,907 | 30,696,643 | 1,312,586 | (6,725) | 1,999,843 | 10,551,739 | 111,320,846 |
Premium Money Market | |||||||
Fund Investor Class | 21,866,634 | 10,978,548 | 212,114 | — | 19,807 | 32,633,068 | 32,633,068 |
NT Emerging Markets | |||||||
Fund Institutional Class | 599,683 | 633,086 | 1,724,877 | 169,064 | — | 458,444 | 3,933,449 |
NT International Growth | |||||||
Fund Institutional Class | 2,761,408 | 4,709,748 | 4,180,154 | (689,169) | 307,601 | 2,909,046 | 23,883,268 |
International Bond Fund | |||||||
Institutional Class | 1,320,292 | 7,517,714 | 322,893 | 1,899 | 959,867 | 1,802,706 | 25,670,534 |
$97,133,367 | $22,484,750 | $(3,421,945) | $5,584,578 | $425,262,025 | |||
(1) Distributions received includes distributions from net investment income and from capital gains from the underlying funds. |
52
July 31, 2009 | January 31, 2010 | ||||||
Share | Purchase | Sales | Realized | Distributions | Share | Market | |
Fund/Underlying Fund | Balance | Cost | Cost | Gain (Loss) | Received(1) | Balance | Value |
LIVESTRONG 2020 Portfolio | |||||||
NT Equity Growth Fund | |||||||
Institutional Class | 1,970,129 | $ 8,349,695 | $ 917,292 | $ 13,848 | $ 137,684 | 2,882,861 | $ 23,552,974 |
NT Growth Fund | |||||||
Institutional Class | 1,274,756 | 5,742,599 | 1,379,171 | 46,819 | 70,375 | 1,731,456 | 16,743,180 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 2,008,361 | 7,667,906 | 1,032,567 | 16,024 | 161,637 | 2,897,993 | 21,705,968 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 852,435 | 3,327,589 | 493,239 | 14,167 | 91,572 | 1,179,842 | 10,500,594 |
NT Small Company | |||||||
Fund Institutional Class | 510,117 | 1,243,456 | 378,702 | 4,412 | 17,489 | 646,542 | 4,241,315 |
NT Vista Fund | |||||||
Institutional Class | 714,014 | 3,300,828 | 341,472 | 3,569 | 896 | 1,088,386 | 8,445,875 |
Real Estate Fund | |||||||
Institutional Class | 159,305 | 844,195 | 216,603 | 11,983 | 24,815 | 207,236 | 2,803,903 |
High-Yield Fund | |||||||
Institutional Class | 754,254 | 2,566,010 | 103,062 | (147) | 244,512 | 1,188,761 | 6,918,589 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 708,859 | 6,040,570 | 273,608 | (2,065) | 214,540 | 1,209,065 | 14,085,607 |
NT Diversified Bond | |||||||
Fund Institutional Class | 2,664,978 | 22,389,911 | 1,428,481 | (8,203) | 800,633 | 4,660,012 | 49,163,127 |
NT Emerging Markets | |||||||
Fund Institutional Class | 389,234 | 1,339,392 | 462,038 | 36,118 | — | 486,097 | 4,170,712 |
NT International Growth | |||||||
Fund Institutional Class | 1,162,977 | 4,859,309 | 1,343,506 | 67,506 | 154,812 | 1,575,303 | 12,933,238 |
Premium Money Market | |||||||
Fund Investor Class | 5,659,565 | 4,498,352 | 151,258 | — | 5,718 | 10,006,659 | 10,006,659 |
International Bond Fund | |||||||
Institutional Class | 370,258 | 4,983,806 | 244,108 | (5,203) | 301,009 | 688,355 | 9,802,175 |
$77,153,618 | $8,765,107 | $198,828 | $2,225,692 | $195,073,916 | |||
(1) Distributions received includes distributions from net investment income and from capital gains from the underlying funds. |
53
July 31, 2009 | January 31, 2010 | ||||||
Share | Purchase | Sales | Realized | Distributions | Share | Market | |
Fund/Underlying Fund | Balance | Cost | Cost | Gain (Loss) | Received(1) | Balance | Value |
LIVESTRONG 2025 Portfolio | |||||||
NT Equity Growth Fund | |||||||
Institutional Class | 7,648,927 | $ 9,240,207 | $ 2,520,548 | $ (678,659) | $ 463,420 | 8,548,405 | $ 69,840,469 |
NT Growth Fund | |||||||
Institutional Class | 5,769,287 | 7,882,138 | 5,878,657 | (541,830) | 261,941 | 6,045,194 | 58,457,026 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 7,968,242 | 9,715,973 | 5,137,882 | (1,620,194) | 565,296 | 8,796,317 | 65,884,414 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 3,096,495 | 3,105,092 | 1,586,578 | (277,392) | 289,699 | 3,304,703 | 29,411,857 |
NT Small Company | |||||||
Fund Institutional Class | 2,718,383 | 1,782,988 | 2,629,600 | (919,453) | 85,244 | 2,738,444 | 17,964,193 |
NT Vista Fund | |||||||
Institutional Class | 3,018,698 | 4,392,812 | 757,723 | (186,887) | 3,115 | 3,504,285 | 27,193,251 |
Real Estate Fund | |||||||
Institutional Class | 703,700 | 1,100,212 | 1,692,789 | (683,106) | 96,025 | 712,510 | 9,640,260 |
High-Yield Fund | |||||||
Institutional Class | 2,529,543 | 3,563,275 | 65,613 | (9,076) | 708,861 | 3,147,408 | 18,317,914 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 2,456,206 | 8,731,175 | 116,879 | (29) | 596,210 | 3,203,526 | 37,321,078 |
NT Diversified Bond | |||||||
Fund Institutional Class | 9,068,819 | 35,021,067 | 1,117,186 | (6,482) | 2,331,280 | 12,292,812 | 129,689,167 |
NT Emerging Markets | |||||||
Fund Institutional Class | 1,813,244 | 1,590,796 | 2,994,143 | (642,948) | — | 1,721,044 | 14,766,557 |
NT International Growth | |||||||
Fund Institutional Class | 5,378,530 | 7,489,542 | 7,045,755 | (1,399,404) | 593,128 | 5,601,103 | 45,985,056 |
Premium Money Market | |||||||
Fund Investor Class | 21,493,826 | 8,056,825 | 94,199 | — | 19,032 | 29,456,452 | 29,456,452 |
International Bond Fund | |||||||
Institutional Class | 625,811 | 5,860,209 | 38,461 | (725) | 478,402 | 1,011,227 | 14,399,873 |
$107,532,311 | $31,676,013 | $(6,966,185) | $6,491,653 | $568,327,567 | |||
(1) Distributions received includes distributions from net investment income and from capital gains from the underlying funds. |
54
July 31, 2009 | January 31, 2010 | ||||||
Share | Purchase | Sales | Realized | Distributions | Share | Market | |
Fund/Underlying Fund | Balance | Cost | Cost | Gain (Loss) | Received(1) | Balance | Value |
LIVESTRONG 2030 Portfolio | |||||||
NT Equity Growth Fund | |||||||
Institutional Class | 1,610,477 | $ 7,452,540 | $ 617,395 | $ 5,158 | $ 114,961 | 2,448,227 | $ 20,002,014 |
NT Growth Fund | |||||||
Institutional Class | 1,380,021 | 7,473,313 | 892,657 | 8,117 | 83,633 | 2,065,782 | 19,976,112 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 1,748,426 | 7,725,846 | 731,369 | 6,421 | 145,654 | 2,681,971 | 20,087,963 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 669,431 | 2,934,760 | 556,829 | 9,645 | 72,170 | 944,018 | 8,401,760 |
NT Small Company | |||||||
Fund Institutional Class | 681,259 | 2,454,255 | 255,587 | 1,996 | 25,020 | 1,024,641 | 6,721,645 |
NT Vista Fund | |||||||
Institutional Class | 685,954 | 3,041,544 | 89,607 | (1,092) | 858 | 1,057,397 | 8,205,401 |
Real Estate Fund | |||||||
Institutional Class | 165,791 | 1,088,018 | 201,791 | 8,885 | 26,546 | 232,691 | 3,148,309 |
High-Yield Fund | |||||||
Institutional Class | 461,025 | 1,962,413 | 42,911 | (240) | 155,988 | 798,770 | 4,648,842 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 441,440 | 4,383,183 | 86,944 | (13) | 144,003 | 813,299 | 9,474,933 |
NT Diversified Bond | |||||||
Fund Institutional Class | 1,645,852 | 16,101,254 | 420,115 | (1,491) | 516,433 | 3,137,074 | 33,096,131 |
NT Emerging Markets | |||||||
Fund Institutional Class | 475,805 | 1,946,471 | 900,418 | 66,762 | — | 589,983 | 5,062,054 |
NT International Growth | |||||||
Fund Institutional Class | 1,239,635 | 6,267,405 | 1,010,334 | 69,788 | 179,610 | 1,852,344 | 15,207,744 |
Premium Money Market | |||||||
Fund Investor Class | 3,994,174 | 4,492,674 | 72,370 | — | 4,246 | 8,414,478 | 8,414,478 |
$67,323,676 | $5,878,327 | $173,936 | $1,469,122 | $162,447,386 | |||
(1) Distributions received includes distributions from net investment income and from capital gains from the underlying funds. |
55
July 31, 2009 | January 31, 2010 | ||||||
Share | Purchase | Sales | Realized | Distributions | Share | Market | |
Fund/Underlying Fund | Balance | Cost | Cost | Gain (Loss) | Received(1) | Balance | Value |
LIVESTRONG 2035 Portfolio | |||||||
NT Equity Growth Fund | |||||||
Institutional Class | 4,750,635 | $ 8,636,857 | $ 1,927,772 | $ (530,334) | $ 300,485 | 5,639,475 | $ 46,074,511 |
NT Growth Fund | |||||||
Institutional Class | 4,071,949 | 8,651,146 | 2,548,423 | (358,223) | 204,467 | 4,751,198 | 45,944,085 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 5,155,073 | 9,242,090 | 2,505,367 | (842,008) | 385,167 | 6,168,862 | 46,204,776 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 2,164,783 | 3,520,662 | 1,888,272 | (382,905) | 208,125 | 2,401,885 | 21,376,776 |
NT Small Company | |||||||
Fund Institutional Class | 1,819,959 | 2,817,719 | 1,190,042 | (392,975) | 61,546 | 2,140,060 | 14,038,794 |
NT Vista Fund | |||||||
Institutional Class | 2,216,542 | 4,170,502 | 570,393 | (150,646) | 2,349 | 2,690,779 | 20,880,445 |
Real Estate Fund | |||||||
Institutional Class | 508,499 | 1,397,609 | 1,402,796 | (636,403) | 73,162 | 558,125 | 7,551,431 |
High-Yield Fund | |||||||
Institutional Class | 1,094,665 | 2,110,614 | 21,468 | (2,815) | 321,993 | 1,464,256 | 8,521,970 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 1,029,010 | 5,356,369 | 37,312 | 2 | 276,362 | 1,489,425 | 17,351,801 |
NT Diversified Bond | |||||||
Fund Institutional Class | 3,846,878 | 20,440,352 | 203,315 | (968) | 1,053,851 | 5,770,223 | 60,875,853 |
NT Emerging Markets | |||||||
Fund Institutional Class | 1,582,020 | 2,581,198 | 2,680,018 | (786,551) | — | 1,659,329 | 14,237,043 |
NT International Growth | |||||||
Fund Institutional Class | 3,572,561 | 7,391,617 | 4,412,871 | (1,005,281) | 424,503 | 4,047,908 | 33,233,325 |
Premium Money Market | |||||||
Fund Investor Class | 4,854,883 | 4,145,832 | 16,209 | — | 4,733 | 8,984,506 | 8,984,506 |
$80,462,567 | $19,404,258 | $(5,089,107) | $3,316,743 | $345,275,316 | |||
(1) Distributions received includes distributions from net investment income and from capital gains from the underlying funds. |
56
July 31, 2009 | January 31, 2010 | ||||||
Share | Purchase | Sales | Realized | Distributions | Share | Market | |
Fund/Underlying Fund | Balance | Cost | Cost | Gain (Loss) | Received(1) | Balance | Value |
LIVESTRONG 2040 Portfolio | |||||||
NT Equity Growth Fund | |||||||
Institutional Class | 747,682 | $ 5,035,871 | $ 93,485 | $ (607) | $ 59,804 | 1,353,895 | $11,061,322 |
NT Growth Fund | |||||||
Institutional Class | 625,447 | 5,047,979 | 78,491 | (369) | 44,641 | 1,142,367 | 11,046,689 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 792,721 | 5,249,436 | 68,489 | (416) | 74,688 | 1,483,181 | 11,109,026 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 351,915 | 2,406,769 | 86,706 | 587 | 43,992 | 619,536 | 5,513,870 |
NT Small Company | |||||||
Fund Institutional Class | 255,667 | 1,350,554 | 46,208 | 76 | 10,398 | 459,216 | 3,012,457 |
NT Vista Fund | |||||||
Institutional Class | 360,843 | 2,773,792 | 46,015 | (629) | 545 | 702,660 | 5,452,642 |
Real Estate Fund | |||||||
Institutional Class | 82,564 | 801,628 | 57,625 | 976 | 14,823 | 139,045 | 1,881,279 |
High-Yield Fund | |||||||
Institutional Class | 135,139 | 781,324 | 9,122 | (59) | 50,549 | 271,118 | 1,577,907 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 127,038 | 1,735,547 | 18,095 | 10 | 46,877 | 275,934 | 3,214,631 |
NT Diversified Bond | |||||||
Fund Institutional Class | 477,499 | 6,224,948 | 63,701 | (79) | 166,916 | 1,063,763 | 11,222,699 |
NT Emerging Markets | |||||||
Fund Institutional Class | 283,654 | 1,834,343 | 251,197 | 8,951 | — | 464,699 | 3,987,117 |
NT International Growth | |||||||
Fund Institutional Class | 531,961 | 3,972,240 | 392,686 | 10,334 | 89,016 | 953,945 | 7,831,889 |
$37,214,431 | $1,211,820 | $18,775 | $602,249 | $76,911,528 | |||
(1) Distributions received includes distributions from net investment income and from capital gains from the underlying funds. |
57
July 31, 2009 | January 31, 2010 | ||||||
Share | Purchase | Sales | Realized | Distributions | Share | Market | |
Fund/Underlying Fund | Balance | Cost | Cost | Gain (Loss) | Received(1) | Balance | Value |
LIVESTRONG 2045 Portfolio | |||||||
NT Equity Growth Fund | |||||||
Institutional Class | 2,764,185 | $ 5,067,884 | $ 582,155 | $ (161,084) | $ 177,493 | 3,335,777 | $ 27,253,298 |
NT Growth Fund | |||||||
Institutional Class | 2,369,786 | 5,026,412 | 977,206 | (147,347) | 121,647 | 2,810,460 | 27,177,148 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 3,049,782 | 5,590,489 | 965,316 | (317,383) | 231,520 | 3,711,359 | 27,798,079 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 1,309,619 | 2,214,420 | 526,752 | (136,649) | 129,166 | 1,521,676 | 13,542,917 |
NT Small Company | |||||||
Fund Institutional Class | 1,129,878 | 1,313,831 | 743,918 | (243,411) | 37,175 | 1,260,993 | 8,272,114 |
NT Vista Fund | |||||||
Institutional Class | 1,341,136 | 3,117,484 | 444,631 | (124,195) | 1,472 | 1,695,214 | 13,154,861 |
Real Estate Fund | |||||||
Institutional Class | 335,863 | 955,381 | 959,971 | (468,730) | 48,300 | 372,078 | 5,034,215 |
NT Emerging Markets | |||||||
Fund Institutional Class | 1,262,828 | 2,220,980 | 2,838,531 | (748,781) | — | 1,280,348 | 10,985,386 |
NT International Growth | |||||||
Fund Institutional Class | 1,938,885 | 4,030,689 | 1,913,291 | (481,734) | 237,163 | 2,247,908 | 18,455,324 |
High-Yield Fund | |||||||
Institutional Class | 438,751 | 867,203 | 55,219 | (6,913) | 128,534 | 583,401 | 3,395,394 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 412,461 | 2,182,247 | 96,686 | (62) | 110,165 | 593,143 | 6,910,116 |
NT Diversified Bond | |||||||
Fund Institutional Class | 1,562,796 | 8,439,449 | 545,225 | (3,492) | 425,788 | 2,313,395 | 24,406,317 |
$41,026,469 | $10,648,901 | $(2,839,781) | $1,648,423 | $186,385,169 | |||
(1) Distributions received includes distributions from net investment income and from capital gains from the underlying funds. |
58
July 31, 2009 | January 31, 2010 | ||||||
Share | Purchase | Sales | Realized | Distributions | Share | Market | |
Fund/Underlying Fund | Balance | Cost | Cost | Gain (Loss) | Received(1) | Balance | Value |
LIVESTRONG 2050 Portfolio | |||||||
NT Equity Growth Fund | |||||||
Institutional Class | 143,676 | $ 1,990,419 | $ 150,174 | $ (8,662) | $ 13,934 | 369,255 | $ 3,016,813 |
NT Growth Fund | |||||||
Institutional Class | 123,025 | 1,987,744 | 170,332 | (2,176) | 10,762 | 311,570 | 3,012,882 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 158,713 | 2,052,781 | 158,266 | (5,211) | 17,718 | 411,156 | 3,079,558 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 68,107 | 934,592 | 78,829 | (956) | 10,092 | 166,410 | 1,481,049 |
NT Small Company | |||||||
Fund Institutional Class | 59,816 | 637,607 | 58,579 | (4,628) | 2,814 | 150,036 | 984,236 |
NT Vista Fund | |||||||
Institutional Class | 70,010 | 1,027,694 | 77,486 | (4,612) | 129 | 188,947 | 1,466,229 |
Real Estate Fund | |||||||
Institutional Class | 18,270 | 378,680 | 41,470 | 786 | 3,893 | 43,652 | 590,612 |
NT Emerging Markets | |||||||
Fund Institutional Class | 65,640 | 872,207 | 136,292 | 2,732 | — | 149,762 | 1,284,958 |
NT International Growth | |||||||
Fund Institutional Class | 92,205 | 1,314,674 | 156,130 | (1,194) | 18,915 | 229,395 | 1,883,333 |
High-Yield Fund | |||||||
Institutional Class | 19,414 | 201,087 | 13,960 | 5 | 8,709 | 52,253 | 304,113 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 18,277 | 429,345 | 27,723 | 196 | 8,353 | 53,151 | 619,209 |
NT Diversified Bond | |||||||
Fund Institutional Class | 68,273 | 1,543,183 | 109,233 | (88) | 28,678 | 204,869 | 2,161,368 |
$13,370,013 | $1,178,474 | $(23,808) | $123,997 | $19,884,360 | |||
(1) Distributions received includes distributions from net investment income and from capital gains from the underlying funds. |
59
6. Investments in Underlying Funds
The funds do not invest in the underlying funds for the purpose of exercising management or control; however, investments by the funds within their investment strategies may represent a significant portion of the underlying funds’ net assets. As of January 31, 2010, the following LIVESTRONG Portfolios owned 25% or more of the total outstanding shares of the underlying funds:
LIVESTRONG 2025 Portfolio | |
NT Equity Growth Fund | 25% |
NT Growth Fund | 26% |
NT Large Company Value Fund | 25% |
NT Mid Cap Value Fund | 25% |
NT Small Company Fund | 27% |
NT Vista Fund | 26% |
NT Diversified Bond Fund | 27% |
NT Emerging Markets Fund | 25% |
NT International Growth Fund | 27% |
As of January 31, 2010, the funds, in aggregate, owned 100% of the total outstanding shares of the underlying NT Diversified Bond Fund, NT Emerging Markets Fund, NT Equity Growth Fund, NT Growth Fund, NT International Growth Fund, NT Large Company Value Fund, NT Mid Cap Value Fund, NT Small Company Fund and NT Vista Fund.
7. Fair Value Measurements
The funds’ securities valuation process is based on several considerations and may use multiple inputs to determine the fair value of the positions held by the funds. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels as follows:
• Level 1 valuation inputs consist of actual quoted prices in an active market for identical securities;
• Level 2 valuation inputs consist of significant direct or indirect observable market data (including quoted prices for similar securities, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.); or
• Level 3 valuation inputs consist of significant unobservable inputs (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not an indication of the risks associated with investing in these securities or other financial instruments.
As of January 31, 2010, the valuation inputs used to determine the fair value of the funds’ securities were classified as Level 1.
60
8. Risk Factors
Some of the underlying funds invest in foreign securities, which are generally riskier than U.S. securities. As a result, the funds are subject to foreign risk, meaning that political events (such as civil unrest, national elections and imposition of exchange controls), social, and economic events (such as labor strikes and rising inflation), and natural disasters occurring in a country where the funds invest could cause the funds’ investments in that country to experience gains or losses. Investing in emerging markets may accentuate these risks.
9. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of January 31, 2010, the components of investments for federal income tax purposes were as follows:
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | |
Income Portfolio | 2015 Portfolio | 2020 Portfolio | 2025 Portfolio | 2030 Portfolio | |
Federal tax cost | |||||
of investments | $190,361,848 | $421,528,960 | $180,968,347 | $567,887,748 | $149,572,725 |
Gross tax appreciation | |||||
of investments | $6,772,092 | $3,733,065 | $14,211,289 | $5,112,975 | $12,874,661 |
Gross tax depreciation | |||||
of investments | — | — | (105,720) | (4,673,156) | — |
Net tax appreciation | |||||
(depreciation) | |||||
of investments | $6,772,092 | $3,733,065 | $14,105,569 | $439,819 | $12,874,661 |
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | ||
2035 Portfolio | 2040 Portfolio | 2045 Portfolio | 2050 Portfolio | ||
Federal tax cost | |||||
of investments | $350,116,516 | $70,832,307 | $196,429,530 | $18,911,961 | |
Gross tax appreciation | |||||
of investments | $2,389,600 | $6,079,221 | $567,198 | $972,399 | |
Gross tax depreciation | |||||
of investments | (7,230,800) | — | (10,611,559) | — | |
Net tax appreciation | |||||
(depreciation) | |||||
of investments | $(4,841,200) | $6,079,221 | $(10,044,361) | $972,399 |
The difference between book-basis and tax-basis cost and unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
61
Following are the capital loss carryovers and capital loss deferral amounts as of July 31, 2009:
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | |
Income Portfolio | 2015 Portfolio | 2020 Portfolio | 2025 Portfolio | 2030 Portfolio | |
Accumulated capital losses | $(176,528) | $(371,990) | — | $(566,597) | — |
Capital loss deferrals | $(2,546,567) | $(3,727,536) | — | $(3,036,233) | — |
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | ||
2035 Portfolio | 2040 Portfolio | 2045 Portfolio | 2050 Portfolio | ||
Accumulated capital losses | $(456,604) | — | $(357,580) | — | |
Capital loss deferrals | $(2,677,709) | — | $(1,705,190) | — |
The accumulated capital losses listed above represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations. The capital loss carryovers expire in 2017.
The capital loss deferrals listed above represent net capital losses incurred in the nine-month period ended July 31, 2009. The funds have elected to treat such losses as having been incurred in the following fiscal year for federal income tax purposes.
10. Corporate Event
As part of a long-standing estate and business succession plan established by ACC Co-Chairman James E. Stowers, Jr., the founder of American Century Investments, ACC Co-Chairman Richard W. Brown has succeeded Mr. Stowers as trustee of a trust that holds a greater-than-25% voting interest in ACC. Under the 1940 Act, this is presumed to represent control of ACC even though it is less than a majority interest. Because ACC is the parent corporation of each fund’s investment advisor, the change of trustee is considered a technical assignment of each fund’s investment advisory agreement. Under the 1940 Act, an assignment requires the automatic termination of such agreements, making the approval of new agreements necessary.
On February 18, 2010, the Board of Directors approved interim investment advisory agreements under which each fund will be managed until new agreements are approved by fund shareholders. The interim agreements are substantially identical to the terminated agreements (with the exception of different effective and termination dates) and will not result in changes in the management of American Century Investments, the funds, their investment objectives, fees or services provided. New agreements, also expected to be substantially identical to the terminated agreements, will be submitted for shareholder approval.
62
Financial Highlights |
LIVESTRONG Income Portfolio | |||||||
Investor Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.53 | $10.64 | $11.06 | $10.45 | $10.51 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.14 | 0.24 | 0.40 | 0.33 | 0.37 | 0.29 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.44 | (0.95) | (0.38) | 0.75 | (0.07) | 0.52 | |
Total From | |||||||
Investment Operations | 0.58 | (0.71) | 0.02 | 1.08 | 0.30 | 0.81 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.14) | (0.31) | (0.42) | (0.32) | (0.35) | (0.30) | |
From Net | |||||||
Realized Gains | — | (0.09) | (0.02) | (0.15) | (0.01) | — | |
Total Distributions | (0.14) | (0.40) | (0.44) | (0.47) | (0.36) | (0.30) | |
Net Asset Value, | |||||||
End of Period | $9.97 | $9.53 | $10.64 | $11.06 | $10.45 | $10.51 | |
Total Return(4) | 6.08% | (6.44)% | 0.11% | 10.51% | 2.99% | 8.14% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.20%(6) | 0.20% | 0.20% | 0.20% | 0.20% | 0.20%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 2.80%(6) | 2.64% | 3.61% | 3.03% | 3.51% | 3.16%(6) | |
Portfolio Turnover Rate | 8% | 51% | 26% | 22% | 120% | 6% | |
Net Assets, End of Period | |||||||
(in thousands) | $98,334 | $95,441 | $49,378 | $44,109 | $27,374 | $15,572 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | ||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
63
LIVESTRONG Income Portfolio | |||||||
Institutional Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.53 | $10.64 | $11.06 | $10.45 | $10.51 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.15 | 0.26 | 0.42 | 0.35 | 0.37 | 0.34 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.44 | (0.95) | (0.38) | 0.75 | (0.05) | 0.48 | |
Total From | |||||||
Investment Operations | 0.59 | (0.69) | 0.04 | 1.10 | 0.32 | 0.82 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.15) | (0.33) | (0.44) | (0.34) | (0.37) | (0.31) | |
From Net | |||||||
Realized Gains | — | (0.09) | (0.02) | (0.15) | (0.01) | — | |
Total Distributions | (0.15) | (0.42) | (0.46) | (0.49) | (0.38) | (0.31) | |
Net Asset Value, | |||||||
End of Period | $9.97 | $9.53 | $10.64 | $11.06 | $10.45 | $10.51 | |
Total Return(4) | 6.19% | (6.25)% | 0.31% | 10.73% | 3.20% | 8.31% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.00%(6) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 3.00%(6) | 2.84% | 3.81% | 3.23% | 3.71% | 3.36%(6) | |
Portfolio Turnover Rate | 8% | 51% | 26% | 22% | 120% | 6% | |
Net Assets, End of Period | |||||||
(in thousands) | $29,567 | $25,088 | $9,737 | $8,285 | $4,409 | $3,169 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. Other expenses, which include the | ||||||
fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not exceed 0.005%. | |||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
64
LIVESTRONG Income Portfolio | |||||||
Advisor Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.53 | $10.64 | $11.05 | $10.45 | $10.51 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.13 | 0.21 | 0.35 | 0.31 | 0.33 | 0.18 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.44 | (0.94) | (0.35) | 0.74 | (0.05) | 0.61 | |
Total From | |||||||
Investment Operations | 0.57 | (0.73) | — | 1.05 | 0.28 | 0.79 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.13) | (0.29) | (0.39) | (0.30) | (0.33) | (0.28) | |
From Net | |||||||
Realized Gains | — | (0.09) | (0.02) | (0.15) | (0.01) | — | |
Total Distributions | (0.13) | (0.38) | (0.41) | (0.45) | (0.34) | (0.28) | |
Net Asset Value, | |||||||
End of Period | $9.97 | $9.53 | $10.64 | $11.05 | $10.45 | $10.51 | |
Total Return(4) | 5.94% | (6.67)% | (0.05)% | 10.13% | 2.83% | 7.82% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.45%(6) | 0.45% | 0.45% | 0.45% | 0.45% | 0.45%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 2.55%(6) | 2.39% | 3.36% | 2.78% | 3.26% | 2.91%(6) | |
Portfolio Turnover Rate | 8% | 51% | 26% | 22% | 120% | 6% | |
Net Assets, End of Period | |||||||
(in thousands) | $59,211 | $34,202 | $8,285 | $8,129 | $2,966 | $940 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | ||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
65
LIVESTRONG Income Portfolio | |||||||
R Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.52 | $10.63 | $11.05 | $10.44 | $10.50 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.11 | 0.18 | 0.30 | 0.27 | 0.26 | 0.29 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.44 | (0.93) | (0.34) | 0.76 | (0.01) | 0.46 | |
Total From | |||||||
Investment Operations | 0.55 | (0.75) | (0.04) | 1.03 | 0.25 | 0.75 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.11) | (0.27) | (0.36) | (0.27) | (0.30) | (0.25) | |
From Net | |||||||
Realized Gains | — | (0.09) | (0.02) | (0.15) | (0.01) | — | |
Total Distributions | (0.11) | (0.36) | (0.38) | (0.42) | (0.31) | (0.25) | |
Net Asset Value, | |||||||
End of Period | $9.96 | $9.52 | $10.63 | $11.05 | $10.44 | $10.50 | |
Total Return(4) | 5.81% | (6.91)% | (0.40)% | 9.97% | 2.48% | 7.61% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.70%(6) | 0.70% | 0.70% | 0.70% | 0.70% | 0.70%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 2.30%(6) | 2.14% | 3.11% | 2.53% | 3.01% | 2.66%(6) | |
Portfolio Turnover Rate | 8% | 51% | 26% | 22% | 120% | 6% | |
Net Assets, End of Period | |||||||
(in thousands) | $10,022 | $3,466 | $351 | $112 | $37 | $9 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | ||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
66
LIVESTRONG 2015 Portfolio | |||||||
Investor Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.87 | $11.39 | $11.91 | $11.09 | $10.93 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.14 | 0.26 | 0.43 | 0.32 | 0.37 | 0.25 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.51 | (1.29) | (0.49) | 1.04 | 0.11 | 0.86 | |
Total From | |||||||
Investment Operations | 0.65 | (1.03) | (0.06) | 1.36 | 0.48 | 1.11 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.19) | (0.35) | (0.41) | (0.27) | (0.31) | (0.18) | |
From Net | |||||||
Realized Gains | — | (0.14) | (0.05) | (0.27) | (0.01) | — | |
Total Distributions | (0.19) | (0.49) | (0.46) | (0.54) | (0.32) | (0.18) | |
Net Asset Value, | |||||||
End of Period | $10.33 | $9.87 | $11.39 | $11.91 | $11.09 | $10.93 | |
Total Return(4) | 6.56% | (8.63)% | (0.67)% | 12.46% | 4.46% | 11.17% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.20%(6) | 0.20% | 0.20% | 0.20% | 0.20% | 0.20%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 2.69%(6) | 2.78% | 3.62% | 2.74% | 3.27% | 2.61%(6) | |
Portfolio Turnover Rate | 5% | 28% | 20% | 18% | 123% | 2% | |
Net Assets, End of Period | |||||||
(in thousands) | $248,523 | $217,149 | $161,838 | $139,725 | $89,431 | $40,717 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | ||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
67
LIVESTRONG 2015 Portfolio | |||||||
Institutional Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.89 | $11.41 | $11.93 | $11.10 | $10.94 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.15 | 0.24 | 0.44 | 0.34 | 0.33 | 0.29 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.51 | (1.25) | (0.48) | 1.05 | 0.17 | 0.84 | |
Total From | |||||||
Investment Operations | 0.66 | (1.01) | (0.04) | 1.39 | 0.50 | 1.13 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.21) | (0.37) | (0.43) | (0.29) | (0.33) | (0.19) | |
From Net | |||||||
Realized Gains | — | (0.14) | (0.05) | (0.27) | (0.01) | — | |
Total Distributions | (0.21) | (0.51) | (0.48) | (0.56) | (0.34) | (0.19) | |
Net Asset Value, | |||||||
End of Period | $10.34 | $9.89 | $11.41 | $11.93 | $11.10 | $10.94 | |
Total Return(4) | 6.66% | (8.42)% | (0.46)% | 12.77% | 4.67% | 11.32% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.00%(6) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 2.89%(6) | 2.98% | 3.82% | 2.94% | 3.47% | 2.81%(6) | |
Portfolio Turnover Rate | 5% | 28% | 20% | 18% | 123% | 2% | |
Net Assets, End of Period | |||||||
(in thousands) | $69,002 | $59,500 | $17,845 | $15,736 | $10,439 | $3,011 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. Other expenses, which include the | ||||||
fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not exceed 0.005%. | |||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
68
LIVESTRONG 2015 Portfolio | |||||||
Advisor Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.86 | $11.37 | $11.89 | $11.07 | $10.91 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.13 | 0.25 | 0.38 | 0.30 | 0.31 | 0.17 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.50 | (1.29) | (0.47) | 1.03 | 0.14 | 0.91 | |
Total From | |||||||
Investment Operations | 0.63 | (1.04) | (0.09) | 1.33 | 0.45 | 1.08 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.16) | (0.33) | (0.38) | (0.24) | (0.28) | (0.17) | |
From Net | |||||||
Realized Gains | — | (0.14) | (0.05) | (0.27) | (0.01) | — | |
Total Distributions | (0.16) | (0.47) | (0.43) | (0.51) | (0.29) | (0.17) | |
Net Asset Value, | |||||||
End of Period | $10.33 | $9.86 | $11.37 | $11.89 | $11.07 | $10.91 | |
Total Return(4) | 6.40% | (8.79)% | (0.93)% | 12.20% | 4.22% | 10.88% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.45%(6) | 0.45% | 0.45% | 0.45% | 0.45% | 0.45%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 2.44%(6) | 2.53% | 3.37% | 2.49% | 3.02% | 2.36%(6) | |
Portfolio Turnover Rate | 5% | 28% | 20% | 18% | 123% | 2% | |
Net Assets, End of Period | |||||||
(in thousands) | $78,689 | $40,386 | $24,384 | $19,270 | $9,556 | $323 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | ||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
69
LIVESTRONG 2015 Portfolio | |||||||
R Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.84 | $11.36 | $11.88 | $11.06 | $10.90 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.12 | 0.18 | 0.39 | 0.25 | 0.19 | 0.24 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.51 | (1.25) | (0.51) | 1.05 | 0.23 | 0.82 | |
Total From | |||||||
Investment Operations | 0.63 | (1.07) | (0.12) | 1.30 | 0.42 | 1.06 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.14) | (0.31) | (0.35) | (0.21) | (0.25) | (0.16) | |
From Net | |||||||
Realized Gains | — | (0.14) | (0.05) | (0.27) | (0.01) | — | |
Total Distributions | (0.14) | (0.45) | (0.40) | (0.48) | (0.26) | (0.16) | |
Net Asset Value, | |||||||
End of Period | $10.33 | $9.84 | $11.36 | $11.88 | $11.06 | $10.90 | |
Total Return(4) | 6.35% | (9.12)% | (1.19)% | 11.92% | 4.05% | 10.59% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.70%(6) | 0.70% | 0.70% | 0.70% | 0.70% | 0.70%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 2.19%(6) | 2.28% | 3.12% | 2.24% | 2.77% | 2.11%(6) | |
Portfolio Turnover Rate | 5% | 28% | 20% | 18% | 123% | 2% | |
Net Assets, End of Period | |||||||
(in thousands) | $29,047 | $13,316 | $4,165 | $3,187 | $351 | $14 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | ||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
70
LIVESTRONG 2020 Portfolio | ||||
Investor Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010(1) | 2009 | 2008(2) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $8.47 | $9.49 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.11 | 0.13 | 0.03 | |
Net Realized and Unrealized Gain (Loss) | 0.49 | (1.03) | (0.54) | |
Total From Investment Operations | 0.60 | (0.90) | (0.51) | |
Distributions | ||||
From Net Investment Income | (0.15) | (0.12) | — | |
From Net Realized Gains | (0.01) | — | — | |
Total Distributions | (0.16) | (0.12) | — | |
Net Asset Value, End of Period | $8.91 | $8.47 | $9.49 | |
Total Return(4) | 7.01% | (9.38)% | (5.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.20%(6) | 0.20% | 0.20%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 2.55%(6) | 1.70% | 1.89%(6) | |
Portfolio Turnover Rate | 6% | 53% | 0% | |
Net Assets, End of Period (in thousands) | $107,071 | $91,329 | $1,073 | |
(1) | Six months ended January 31, 2010 (unaudited). | |||
(2) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(3) | Computed using average shares outstanding throughout the period. | |||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | |||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | ||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | ||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | ||||
guidelines and does not result in any gain or loss of value between one class and another. | ||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(6) | Annualized. | |||
See Notes to Financial Statements. |
71
LIVESTRONG 2020 Portfolio | ||||
Institutional Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010(1) | 2009 | 2008(2) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $8.47 | $9.50 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.13 | 0.15 | 0.04 | |
Net Realized and Unrealized Gain (Loss) | 0.47 | (1.05) | (0.54) | |
Total From Investment Operations | 0.60 | (0.90) | (0.50) | |
Distributions | ||||
From Net Investment Income | (0.16) | (0.13) | — | |
From Net Realized Gains | (0.01) | — | — | |
Total Distributions | (0.17) | (0.13) | — | |
Net Asset Value, End of Period | $8.90 | $8.47 | $9.50 | |
Total Return(4) | 6.97% | (9.26)% | (5.00)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.00%(6) | 0.00% | 0.00%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 2.75%(6) | 1.90% | 2.09%(6) | |
Portfolio Turnover Rate | 6% | 53% | 0% | |
Net Assets, End of Period (in thousands) | $29,396 | $21,532 | $16 | |
(1) | Six months ended January 31, 2010 (unaudited). | |||
(2) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(3) | Computed using average shares outstanding throughout the period. | |||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | |||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | ||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | ||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | ||||
guidelines and does not result in any gain or loss of value between one class and another. | ||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. Other expenses, which include the | |||
fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not exceed 0.005%. | ||||
(6) | Annualized. | |||
See Notes to Financial Statements. |
72
LIVESTRONG 2020 Portfolio | ||||
Advisor Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010(1) | 2009 | 2008(2) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $8.45 | $9.49 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.10 | 0.15 | 0.04 | |
Net Realized and Unrealized Gain (Loss) | 0.48 | (1.08) | (0.55) | |
Total From Investment Operations | 0.58 | (0.93) | (0.51) | |
Distributions | ||||
From Net Investment Income | (0.12) | (0.11) | — | |
From Net Realized Gains | (0.01) | — | — | |
Total Distributions | (0.13) | (0.11) | — | |
Net Asset Value, End of Period | $8.90 | $8.45 | $9.49 | |
Total Return(4) | 6.87% | (9.72)% | (5.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.45%(6) | 0.45% | 0.45%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 2.30%(6) | 1.45% | 1.64%(6) | |
Portfolio Turnover Rate | 6% | 53% | 0% | |
Net Assets, End of Period (in thousands) | $47,825 | $3,882 | $6 | |
(1) | Six months ended January 31, 2010 (unaudited). | |||
(2) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(3) | Computed using average shares outstanding throughout the period. | |||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | |||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | ||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | ||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | ||||
guidelines and does not result in any gain or loss of value between one class and another. | ||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(6) | Annualized. | |||
See Notes to Financial Statements. |
73
LIVESTRONG 2020 Portfolio | ||||
R Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010(1) | 2009 | 2008(2) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $8.44 | $9.49 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.09 | 0.14 | 0.03 | |
Net Realized and Unrealized Gain (Loss) | 0.48 | (1.10) | (0.54) | |
Total From Investment Operations | 0.57 | (0.96) | (0.51) | |
Distributions | ||||
From Net Investment Income | (0.10) | (0.09) | — | |
From Net Realized Gains | (0.01) | — | — | |
Total Distributions | (0.11) | (0.09) | — | |
Net Asset Value, End of Period | $8.90 | $8.44 | $9.49 | |
Total Return(4) | 6.73% | (9.96)% | (5.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.70%(6) | 0.70% | 0.70%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 2.05%(6) | 1.20% | 1.39%(6) | |
Portfolio Turnover Rate | 6% | 53% | 0% | |
Net Assets, End of Period (in thousands) | $10,782 | $3,274 | $6 | |
(1) | Six months ended January 31, 2010 (unaudited). | |||
(2) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(3) | Computed using average shares outstanding throughout the period. | |||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | |||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | ||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | ||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | ||||
guidelines and does not result in any gain or loss of value between one class and another. | ||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(6) | Annualized. | |||
See Notes to Financial Statements. |
74
LIVESTRONG 2025 Portfolio | |||||||
Investor Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.76 | $11.63 | $12.35 | $11.49 | $11.21 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.12 | 0.22 | 0.42 | 0.28 | 0.34 | 0.18 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.59 | (1.63) | (0.69) | 1.34 | 0.27 | 1.17 | |
Total From | |||||||
Investment Operations | 0.71 | (1.41) | (0.27) | 1.62 | 0.61 | 1.35 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.17) | (0.30) | (0.40) | (0.24) | (0.31) | (0.14) | |
From Net | |||||||
Realized Gains | — | (0.16) | (0.05) | (0.52) | (0.02) | — | |
Total Distributions | (0.17) | (0.46) | (0.45) | (0.76) | (0.33) | (0.14) | |
Net Asset Value, | |||||||
End of Period | $10.30 | $9.76 | $11.63 | $12.35 | $11.49 | $11.21 | |
Total Return(4) | 7.19% | (11.64)% | (2.39)% | 14.45% | 5.48% | 13.57% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.20%(6) | 0.20% | 0.20% | 0.20% | 0.20% | 0.20%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 2.26%(6) | 2.43% | 3.40% | 2.34% | 2.98% | 2.08%(6) | |
Portfolio Turnover Rate | 5% | 22% | 18% | 18% | 120% | 2% | |
Net Assets, End of Period | |||||||
(in thousands) | $357,078 | $313,816 | $215,024 | $174,984 | $112,202 | $53,285 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | ||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
75
LIVESTRONG 2025 Portfolio | |||||||
Institutional Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.77 | $11.64 | $12.37 | $11.51 | $11.23 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.13 | 0.24 | 0.43 | 0.31 | 0.37 | 0.27 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.59 | (1.63) | (0.69) | 1.34 | 0.26 | 1.11 | |
Total From | |||||||
Investment Operations | 0.72 | (1.39) | (0.26) | 1.65 | 0.63 | 1.38 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.19) | (0.32) | (0.42) | (0.27) | (0.33) | (0.15) | |
From Net | |||||||
Realized Gains | — | (0.16) | (0.05) | (0.52) | (0.02) | — | |
Total Distributions | (0.19) | (0.48) | (0.47) | (0.79) | (0.35) | (0.15) | |
Net Asset Value, | |||||||
End of Period | $10.30 | $9.77 | $11.64 | $12.37 | $11.51 | $11.23 | |
Total Return(4) | 7.29% | (11.45)% | (2.27)% | 14.67% | 5.77% | 13.74% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.00%(6) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 2.46%(6) | 2.63% | 3.60% | 2.54% | 3.18% | 2.28%(6) | |
Portfolio Turnover Rate | 5% | 22% | 18% | 18% | 120% | 2% | |
Net Assets, End of Period | |||||||
(in thousands) | $88,143 | $78,031 | $44,611 | $44,250 | $31,399 | $21,458 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. Other expenses, which include the | ||||||
fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not exceed 0.005%. | |||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
76
LIVESTRONG 2025 Portfolio | |||||||
Advisor Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.74 | $11.61 | $12.34 | $11.48 | $11.19 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.11 | 0.21 | 0.35 | 0.26 | 0.29 | 0.12 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.59 | (1.64) | (0.66) | 1.33 | 0.30 | 1.20 | |
Total From | |||||||
Investment Operations | 0.70 | (1.43) | (0.31) | 1.59 | 0.59 | 1.32 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.14) | (0.28) | (0.37) | (0.21) | (0.28) | (0.13) | |
From Net | |||||||
Realized Gains | — | (0.16) | (0.05) | (0.52) | (0.02) | — | |
Total Distributions | (0.14) | (0.44) | (0.42) | (0.73) | (0.30) | (0.13) | |
Net Asset Value, | |||||||
End of Period | $10.30 | $9.74 | $11.61 | $12.34 | $11.48 | $11.19 | |
Total Return(4) | 7.14% | (11.89)% | (2.73)% | 14.17% | 5.30% | 13.28% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.45%(6) | 0.45% | 0.45% | 0.45% | 0.45% | 0.45%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 2.01%(6) | 2.18% | 3.15% | 2.09% | 2.73% | 1.83%(6) | |
Portfolio Turnover Rate | 5% | 22% | 18% | 18% | 120% | 2% | |
Net Assets, End of Period | |||||||
(in thousands) | $90,754 | $49,723 | $28,073 | $17,076 | $7,404 | $388 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | ||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
77
LIVESTRONG 2025 Portfolio | |||||||
R Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.73 | $11.60 | $12.32 | $11.46 | $11.18 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.09 | 0.16 | 0.36 | 0.22 | 0.19 | 0.15 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.59 | (1.62) | (0.70) | 1.34 | 0.36 | 1.15 | |
Total From | |||||||
Investment Operations | 0.68 | (1.46) | (0.34) | 1.56 | 0.55 | 1.30 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.11) | (0.25) | (0.33) | (0.18) | (0.25) | (0.12) | |
From Net | |||||||
Realized Gains | — | (0.16) | (0.05) | (0.52) | (0.02) | — | |
Total Distributions | (0.11) | (0.41) | (0.38) | (0.70) | (0.27) | (0.12) | |
Net Asset Value, | |||||||
End of Period | $10.30 | $9.73 | $11.60 | $12.32 | $11.46 | $11.18 | |
Total Return(4) | 6.98% | (12.12)% | (2.90)% | 13.90% | 4.95% | 13.10% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.70%(6) | 0.70% | 0.70% | 0.70% | 0.70% | 0.70%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 1.76%(6) | 1.93% | 2.90% | 1.84% | 2.48% | 1.58%(6) | |
Portfolio Turnover Rate | 5% | 22% | 18% | 18% | 120% | 2% | |
Net Assets, End of Period | |||||||
(in thousands) | $32,358 | $16,344 | $2,746 | $1,378 | $545 | $65 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | ||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
78
LIVESTRONG 2030 Portfolio | ||||
Investor Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010(1) | 2009 | 2008(2) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $8.04 | $9.39 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.09 | 0.10 | 0.02 | |
Net Realized and Unrealized Gain (Loss) | 0.53 | (1.36) | (0.63) | |
Total From Investment Operations | 0.62 | (1.26) | (0.61) | |
Distributions | ||||
From Net Investment Income | (0.11) | (0.09) | — | |
From Net Realized Gains | (0.01) | — | — | |
Total Distributions | (0.12) | (0.09) | — | |
Net Asset Value, End of Period | $8.54 | $8.04 | $9.39 | |
Total Return(4) | 7.73% | (13.30)% | (6.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.20%(6) | 0.20% | 0.20%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 2.03%(6) | 1.48% | 1.49%(6) | |
Portfolio Turnover Rate | 5% | 43% | 4% | |
Net Assets, End of Period (in thousands) | $83,856 | $70,382 | $626 | |
(1) | Six months ended January 31, 2010 (unaudited). | |||
(2) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(3) | Computed using average shares outstanding throughout the period. | |||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | |||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | ||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | ||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | ||||
guidelines and does not result in any gain or loss of value between one class and another. | ||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(6) | Annualized. | |||
See Notes to Financial Statements. |
79
LIVESTRONG 2030 Portfolio | ||||
Institutional Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010(1) | 2009 | 2008(2) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $8.05 | $9.40 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.10 | 0.12 | 0.04 | |
Net Realized and Unrealized Gain (Loss) | 0.53 | (1.37) | (0.64) | |
Total From Investment Operations | 0.63 | (1.25) | (0.60) | |
Distributions | ||||
From Net Investment Income | (0.13) | (0.10) | — | |
From Net Realized Gains | (0.01) | — | — | |
Total Distributions | (0.14) | (0.10) | — | |
Net Asset Value, End of Period | $8.54 | $8.05 | $9.40 | |
Total Return(4) | 7.81% | (13.18)% | (6.00)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.00%(6) | 0.00% | 0.00%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 2.23%(6) | 1.68% | 1.69%(6) | |
Portfolio Turnover Rate | 5% | 43% | 4% | |
Net Assets, End of Period (in thousands) | $22,911 | $17,528 | $6 | |
(1) | Six months ended January 31, 2010 (unaudited). | |||
(2) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(3) | Computed using average shares outstanding throughout the period. | |||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | |||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | ||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | ||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | ||||
guidelines and does not result in any gain or loss of value between one class and another. | ||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. Other expenses, which include the | |||
fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not exceed 0.005%. | ||||
(6) | Annualized. | |||
See Notes to Financial Statements. |
80
LIVESTRONG 2030 Portfolio | ||||
Advisor Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010(1) | 2009 | 2008(2) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $8.03 | $9.39 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.08 | 0.11 | 0.03 | |
Net Realized and Unrealized Gain (Loss) | 0.52 | (1.39) | (0.64) | |
Total From Investment Operations | 0.60 | (1.28) | (0.61) | |
Distributions | ||||
From Net Investment Income | (0.09) | (0.08) | — | |
From Net Realized Gains | (0.01) | — | — | |
Total Distributions | (0.10) | (0.08) | — | |
Net Asset Value, End of Period | $8.53 | $8.03 | $9.39 | |
Total Return(4) | 7.47% | (13.53)% | (6.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.45%(6) | 0.45% | 0.45%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.78%(6) | 1.23% | 1.24%(6) | |
Portfolio Turnover Rate | 5% | 43% | 4% | |
Net Assets, End of Period (in thousands) | $45,684 | $3,378 | $6 | |
(1) | Six months ended January 31, 2010 (unaudited). | |||
(2) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(3) | Computed using average shares outstanding throughout the period. | |||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | |||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | ||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | ||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | ||||
guidelines and does not result in any gain or loss of value between one class and another. | ||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(6) | Annualized. | |||
See Notes to Financial Statements. |
81
LIVESTRONG 2030 Portfolio | ||||
R Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010(1) | 2009 | 2008(2) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $8.02 | $9.39 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.07 | 0.12 | 0.02 | |
Net Realized and Unrealized Gain (Loss) | 0.52 | (1.42) | (0.63) | |
Total From Investment Operations | 0.59 | (1.30) | (0.61) | |
Distributions | ||||
From Net Investment Income | (0.07) | (0.07) | — | |
From Net Realized Gains | (0.01) | — | — | |
Total Distributions | (0.08) | (0.07) | — | |
Net Asset Value, End of Period | $8.53 | $8.02 | $9.39 | |
Total Return(4) | 7.33% | (13.76)% | (6.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.70%(6) | 0.70% | 0.70%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.53%(6) | 0.98% | 0.99%(6) | |
Portfolio Turnover Rate | 5% | 43% | 4% | |
Net Assets, End of Period (in thousands) | $9,996 | $3,573 | $6 | |
(1) | Six months ended January 31, 2010 (unaudited). | |||
(2) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(3) | Computed using average shares outstanding throughout the period. | |||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | |||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | ||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | ||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | ||||
guidelines and does not result in any gain or loss of value between one class and another. | ||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(6) | Annualized. | |||
See Notes to Financial Statements. |
82
LIVESTRONG 2035 Portfolio | |||||||
Investor Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.74 | $12.10 | $13.09 | $11.85 | $11.43 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.10 | 0.19 | 0.41 | 0.24 | 0.31 | 0.17 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.69 | (2.13) | (0.95) | 1.71 | 0.42 | 1.39 | |
Total From | |||||||
Investment Operations | 0.79 | (1.94) | (0.54) | 1.95 | 0.73 | 1.56 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.14) | (0.24) | (0.40) | (0.19) | (0.30) | (0.13) | |
From Net | |||||||
Realized Gains | — | (0.18) | (0.05) | (0.52) | (0.01) | — | |
Total Distributions | (0.14) | (0.42) | (0.45) | (0.71) | (0.31) | (0.13) | |
Net Asset Value, | |||||||
End of Period | $10.39 | $9.74 | $12.10 | $13.09 | $11.85 | $11.43 | |
Total Return(4) | 8.07% | (15.54)% | (4.33)% | 16.86% | 6.45% | 15.71% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.20%(6) | 0.20% | 0.20% | 0.20% | 0.20% | 0.20%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 1.91%(6) | 2.12% | 3.19% | 1.87% | 2.61% | (1.62)%(6) | |
Portfolio Turnover Rate | 5% | 18% | 16% | 23% | 141% | 3% | |
Net Assets, End of Period | |||||||
(in thousands) | $202,951 | $170,455 | $128,815 | $91,220 | $52,206 | $21,537 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | ||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
83
LIVESTRONG 2035 Portfolio | |||||||
Institutional Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.76 | $12.12 | $13.11 | $11.87 | $11.45 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.11 | 0.20 | 0.44 | 0.26 | 0.30 | 0.16 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.69 | (2.12) | (0.95) | 1.72 | 0.45 | 1.43 | |
Total From | |||||||
Investment Operations | 0.80 | (1.92) | (0.51) | 1.98 | 0.75 | 1.59 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.16) | (0.26) | (0.43) | (0.22) | (0.32) | (0.14) | |
From Net | |||||||
Realized Gains | — | (0.18) | (0.05) | (0.52) | (0.01) | — | |
Total Distributions | (0.16) | (0.44) | (0.48) | (0.74) | (0.33) | (0.14) | |
Net Asset Value, | |||||||
End of Period | $10.40 | $9.76 | $12.12 | $13.11 | $11.87 | $11.45 | |
Total Return(4) | 8.17% | (15.34)% | (4.13)% | 17.07% | 6.66% | 15.98% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.00%(6) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 2.11%(6) | 2.32% | 3.39% | 2.07% | 2.81% | 1.82%(6) | |
Portfolio Turnover Rate | 5% | 18% | 16% | 23% | 141% | 3% | |
Net Assets, End of Period | |||||||
(in thousands) | $54,826 | $46,544 | $24,120 | $22,314 | $11,104 | $3,435 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | ||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
84
LIVESTRONG 2035 Portfolio | |||||||
Advisor Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.73 | $12.09 | $13.08 | $11.83 | $11.42 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.09 | 0.17 | 0.35 | 0.21 | 0.26 | 0.11 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.68 | (2.13) | (0.92) | 1.72 | 0.43 | 1.44 | |
Total From | |||||||
Investment Operations | 0.77 | (1.96) | (0.57) | 1.93 | 0.69 | 1.55 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.11) | (0.22) | (0.37) | (0.16) | (0.27) | (0.13) | |
From Net | |||||||
Realized Gains | — | (0.18) | (0.05) | (0.52) | (0.01) | — | |
Total Distributions | (0.11) | (0.40) | (0.42) | (0.68) | (0.28) | (0.13) | |
Net Asset Value, | |||||||
End of Period | $10.39 | $9.73 | $12.09 | $13.08 | $11.83 | $11.42 | |
Total Return(4) | 7.91% | (15.77)% | (4.58)% | 16.67% | 6.10% | 15.53% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.45%(6) | 0.45% | 0.45% | 0.45% | 0.45% | 0.45%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 1.66%(6) | 1.87% | 2.94% | 1.62% | 2.36% | 1.37%(6) | |
Portfolio Turnover Rate | 5% | 18% | 16% | 23% | 141% | 3% | |
Net Assets, End of Period | |||||||
(in thousands) | $64,692 | $32,896 | $19,145 | $13,378 | $5,224 | $113 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | ||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
85
LIVESTRONG 2035 Portfolio | |||||||
R Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.72 | $12.07 | $13.06 | $11.82 | $11.40 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.08 | 0.14 | 0.43 | 0.18 | 0.16 | 0.22 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.68 | (2.11) | (1.03) | 1.71 | 0.51 | 1.30 | |
Total From | |||||||
Investment Operations | 0.76 | (1.97) | (0.60) | 1.89 | 0.67 | 1.52 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.09) | (0.20) | (0.34) | (0.13) | (0.24) | (0.12) | |
From Net | |||||||
Realized Gains | — | (0.18) | (0.05) | (0.52) | (0.01) | — | |
Total Distributions | (0.09) | (0.38) | (0.39) | (0.65) | (0.25) | (0.12) | |
Net Asset Value, | |||||||
End of Period | $10.39 | $9.72 | $12.07 | $13.06 | $11.82 | $11.40 | |
Total Return(4) | 7.75% | (15.92)% | (4.84)% | 16.30% | 5.93% | 15.24% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.70%(6) | 0.70% | 0.70% | 0.70% | 0.70% | 0.70%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 1.41%(6) | 1.62% | 2.69% | 1.37% | 2.11% | 1.12%(6) | |
Portfolio Turnover Rate | 5% | 18% | 16% | 23% | 141% | 3% | |
Net Assets, End of Period | |||||||
(in thousands) | $22,807 | $10,785 | $2,178 | $975 | $296 | $6 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | ||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
86
LIVESTRONG 2040 Portfolio | ||||
Investor Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010(1) | 2009 | 2008(2) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $7.75 | $9.29 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.08 | 0.09 | 0.01 | |
Net Realized and Unrealized Gain (Loss) | 0.57 | (1.54) | (0.72) | |
Total From Investment Operations | 0.65 | (1.45) | (0.71) | |
Distributions | ||||
From Net Investment Income | (0.09) | (0.09) | — | |
From Net Realized Gains | (0.01) | — | — | |
Total Distributions | (0.10) | (0.09) | — | |
Net Asset Value, End of Period | $8.30 | $7.75 | $9.29 | |
Total Return(4) | 8.32% | (15.53)% | (7.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.20%(6) | 0.20% | 0.20%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.84%(6) | 1.38% | 1.10%(6) | |
Portfolio Turnover Rate | 2% | 25% | 3% | |
Net Assets, End of Period (in thousands) | $32,099 | $24,386 | $831 | |
(1) | Six months ended January 31, 2010 (unaudited). | |||
(2) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(3) | Computed using average shares outstanding throughout the period. | |||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | |||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | ||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | ||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | ||||
guidelines and does not result in any gain or loss of value between one class and another. | ||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(6) | Annualized. | |||
See Notes to Financial Statements. |
87
LIVESTRONG 2040 Portfolio | ||||
Institutional Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010(1) | 2009 | 2008(2) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $7.75 | $9.29 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.09 | 0.11 | 0.03 | |
Net Realized and Unrealized Gain (Loss) | 0.58 | (1.56) | (0.74) | |
Total From Investment Operations | 0.67 | (1.45) | (0.71) | |
Distributions | ||||
From Net Investment Income | (0.11) | (0.09) | — | |
From Net Realized Gains | (0.01) | — | — | |
Total Distributions | (0.12) | (0.09) | — | |
Net Asset Value, End of Period | $8.30 | $7.75 | $9.29 | |
Total Return(4) | 8.54% | (15.43)% | (7.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.00%(6) | 0.00% | 0.00%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 2.04%(6) | 1.58% | 1.30%(6) | |
Portfolio Turnover Rate | 2% | 25% | 3% | |
Net Assets, End of Period (in thousands) | $14,575 | $9,846 | $6 | |
(1) | Six months ended January 31, 2010 (unaudited). | |||
(2) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(3) | Computed using average shares outstanding throughout the period. | |||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | |||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | ||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | ||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | ||||
guidelines and does not result in any gain or loss of value between one class and another. | ||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. Other expenses, which include the | |||
fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not exceed 0.005%. | ||||
(6) | Annualized. | |||
See Notes to Financial Statements. |
88
LIVESTRONG 2040 Portfolio | ||||
Advisor Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010(1) | 2009 | 2008(2) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $7.73 | $9.29 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.07 | 0.09 | 0.02 | |
Net Realized and Unrealized Gain (Loss) | 0.58 | (1.57) | (0.73) | |
Total From Investment Operations | 0.65 | (1.48) | (0.71) | |
Distributions | ||||
From Net Investment Income | (0.07) | (0.08) | — | |
From Net Realized Gains | (0.01) | — | — | |
Total Distributions | (0.08) | (0.08) | — | |
Net Asset Value, End of Period | $8.30 | $7.73 | $9.29 | |
Total Return(4) | 8.33% | (15.87)% | (7.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.45%(6) | 0.45% | 0.45%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.59%(6) | 1.13% | 0.85%(6) | |
Portfolio Turnover Rate | 2% | 25% | 3% | |
Net Assets, End of Period (in thousands) | $24,624 | $1,551 | $6 | |
(1) | Six months ended January 31, 2010 (unaudited). | |||
(2) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(3) | Computed using average shares outstanding throughout the period. | |||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | |||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | ||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | ||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | ||||
guidelines and does not result in any gain or loss of value between one class and another. | ||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(6) | Annualized. | |||
See Notes to Financial Statements. |
89
LIVESTRONG 2040 Portfolio | ||||
R Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010(1) | 2009 | 2008(2) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $7.72 | $9.28 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.06 | 0.10 | 0.02 | |
Net Realized and Unrealized Gain (Loss) | 0.57 | (1.59) | (0.74) | |
Total From Investment Operations | 0.63 | (1.49) | (0.72) | |
Distributions | ||||
From Net Investment Income | (0.05) | (0.07) | — | |
From Net Realized Gains | (0.01) | — | — | |
Total Distributions | (0.06) | (0.07) | — | |
Net Asset Value, End of Period | $8.29 | $7.72 | $9.28 | |
Total Return(4) | 8.07% | (16.01)% | (7.20)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.70%(6) | 0.70% | 0.70%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.34%(6) | 0.88% | 0.60%(6) | |
Portfolio Turnover Rate | 2% | 25% | 3% | |
Net Assets, End of Period (in thousands) | $5,614 | $2,347 | $6 | |
(1) | Six months ended January 31, 2010 (unaudited). | |||
(2) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(3) | Computed using average shares outstanding throughout the period. | |||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | |||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | ||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | ||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | ||||
guidelines and does not result in any gain or loss of value between one class and another. | ||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(6) | Annualized. | |||
See Notes to Financial Statements. |
90
LIVESTRONG 2045 Portfolio | |||||||
Investor Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.59 | $12.24 | $13.40 | $11.96 | $11.54 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.09 | 0.18 | 0.42 | 0.22 | 0.31 | 0.12 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.73 | (2.41) | (1.12) | 1.92 | 0.46 | 1.56 | |
Total From | |||||||
Investment Operations | 0.82 | (2.23) | (0.70) | 2.14 | 0.77 | 1.68 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.13) | (0.22) | (0.41) | (0.17) | (0.32) | (0.14) | |
From Net | |||||||
Realized Gains | — | (0.20) | (0.05) | (0.53) | (0.03) | — | |
Total Distributions | (0.13) | (0.42) | (0.46) | (0.70) | (0.35) | (0.14) | |
Net Asset Value, | |||||||
End of Period | $10.28 | $9.59 | $12.24 | $13.40 | $11.96 | $11.54 | |
Total Return(4) | 8.46% | (17.74)% | (5.53)% | 18.23% | 6.76% | 16.86% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.20%(6) | 0.20% | 0.20% | 0.20% | 0.20% | 0.20%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 1.72%(6) | 1.99% | 3.19% | 1.62% | 2.62% | 1.83%(6) | |
Portfolio Turnover Rate | 5% | 18% | 18% | 25% | 137% | 17% | |
Net Assets, End of Period | |||||||
(in thousands) | $100,740 | $85,095 | $72,649 | $48,229 | $22,437 | $7,465 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | ||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
91
LIVESTRONG 2045 Portfolio | |||||||
Institutional Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.60 | $12.25 | $13.42 | $11.98 | $11.56 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.10 | 0.20 | 0.44 | 0.23 | 0.35 | 0.25 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.74 | (2.41) | (1.12) | 1.93 | 0.44 | 1.45 | |
Total From | |||||||
Investment Operations | 0.84 | (2.21) | (0.68) | 2.16 | 0.79 | 1.70 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.15) | (0.24) | (0.44) | (0.19) | (0.34) | (0.14) | |
From Net | |||||||
Realized Gains | — | (0.20) | (0.05) | (0.53) | (0.03) | — | |
Total Distributions | (0.15) | (0.44) | (0.49) | (0.72) | (0.37) | (0.14) | |
Net Asset Value, | |||||||
End of Period | $10.29 | $9.60 | $12.25 | $13.42 | $11.98 | $11.56 | |
Total Return(4) | 8.67% | (17.56)% | (5.40)% | 18.44% | 6.96% | 17.11% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.00%(6) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 1.92%(6) | 2.19% | 3.39% | 1.82% | 2.82% | 2.03%(6) | |
Portfolio Turnover Rate | 5% | 18% | 18% | 25% | 137% | 17% | |
Net Assets, End of Period | |||||||
(in thousands) | $40,194 | $34,639 | $31,054 | $28,483 | $13,397 | $7,181 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. Other expenses, which include the | ||||||
fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not exceed 0.005%. | |||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
92
LIVESTRONG 2045 Portfolio | |||||||
Advisor Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.57 | $12.22 | $13.38 | $11.94 | $11.53 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.08 | 0.15 | 0.39 | 0.18 | 0.20 | 0.07 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.73 | (2.40) | (1.13) | 1.92 | 0.53 | 1.59 | |
Total From | |||||||
Investment Operations | 0.81 | (2.25) | (0.74) | 2.10 | 0.73 | 1.66 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.10) | (0.20) | (0.37) | (0.13) | (0.29) | (0.13) | |
From Net | |||||||
Realized Gains | — | (0.20) | (0.05) | (0.53) | (0.03) | — | |
Total Distributions | (0.10) | (0.40) | (0.42) | (0.66) | (0.32) | (0.13) | |
Net Asset Value, | |||||||
End of Period | $10.28 | $9.57 | $12.22 | $13.38 | $11.94 | $11.53 | |
Total Return(4) | 8.42% | (17.98)% | (5.78)% | 17.96% | 6.51% | 16.57% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.45%(6) | 0.45% | 0.45% | 0.45% | 0.45% | 0.45%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 1.47%(6) | 1.74% | 2.94% | 1.37% | 2.37% | 1.58%(6) | |
Portfolio Turnover Rate | 5% | 18% | 18% | 25% | 137% | 17% | |
Net Assets, End of Period | |||||||
(in thousands) | $34,766 | $17,537 | $11,411 | $9,091 | $4,177 | $380 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | ||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
93
LIVESTRONG 2045 Portfolio | |||||||
R Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.56 | $12.21 | $13.36 | $11.93 | $11.51 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.07 | 0.11 | 0.38 | 0.12 | 0.12 | 0.18 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.72 | (2.38) | (1.14) | 1.94 | 0.59 | 1.45 | |
Total From | |||||||
Investment Operations | 0.79 | (2.27) | (0.76) | 2.06 | 0.71 | 1.63 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.07) | (0.18) | (0.34) | (0.10) | (0.26) | (0.12) | |
From Net | |||||||
Realized Gains | — | (0.20) | (0.05) | (0.53) | (0.03) | — | |
Total Distributions | (0.07) | (0.38) | (0.39) | (0.63) | (0.29) | (0.12) | |
Net Asset Value, | |||||||
End of Period | $10.28 | $9.56 | $12.21 | $13.36 | $11.93 | $11.51 | |
Total Return(4) | 8.26% | (18.20)% | (5.96)% | 17.58% | 6.24% | 16.38% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to | |||||||
Average Net Assets(5) | 0.70%(6) | 0.70% | 0.70% | 0.70% | 0.70% | 0.70%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to | |||||||
Average Net Assets | 1.22%(6) | 1.49% | 2.69% | 1.12% | 2.12% | 1.33%(6) | |
Portfolio Turnover Rate | 5% | 18% | 18% | 25% | 137% | 17% | |
Net Assets, End of Period | |||||||
(in thousands) | $10,683 | $4,966 | $1,403 | $753 | $165 | $6 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | August 31, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | |||||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | |||||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | |||||||
guidelines and does not result in any gain or loss of value between one class and another. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | ||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
94
LIVESTRONG 2050 Portfolio | ||||
Investor Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010(1) | 2009 | 2008(2) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $7.46 | $9.23 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.07 | 0.10 | 0.02 | |
Net Realized and Unrealized Gain (Loss) | 0.58 | (1.80) | (0.79) | |
Total From Investment Operations | 0.65 | (1.70) | (0.77) | |
Distributions | ||||
From Net Investment Income | (0.08) | (0.07) | — | |
From Net Realized Gains | —(4) | — | — | |
Total Distributions | (0.08) | (0.07) | — | |
Net Asset Value, End of Period | $8.03 | $7.46 | $9.23 | |
Total Return(5) | 8.65% | (18.30)% | (7.70)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(6) | 0.20%(7) | 0.20% | 0.20%(7) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.65%(7) | 1.57% | 1.16%(7) | |
Portfolio Turnover Rate | 9% | 26% | 3% | |
Net Assets, End of Period (in thousands) | $6,851 | $3,454 | $464 | |
(1) | Six months ended January 31, 2010 (unaudited). | |||
(2) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(3) | Computed using average shares outstanding throughout the period. | |||
(4) | Per-share amount was less than $0.005. | |||
(5) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | |||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | ||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | ||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | ||||
guidelines and does not result in any gain or loss of value between one class and another. | ||||
(6) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(7) | Annualized. | |||
See Notes to Financial Statements. |
95
LIVESTRONG 2050 Portfolio | ||||
Institutional Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010(1) | 2009 | 2008(2) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $7.47 | $9.23 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.08 | 0.12 | 0.03 | |
Net Realized and Unrealized Gain (Loss) | 0.57 | (1.80) | (0.80) | |
Total From Investment Operations | 0.65 | (1.68) | (0.77) | |
Distributions | ||||
From Net Investment Income | (0.09) | (0.08) | — | |
From Net Realized Gains | —(4) | — | — | |
Total Distributions | (0.09) | (0.08) | — | |
Net Asset Value, End of Period | $8.03 | $7.47 | $9.23 | |
Total Return(5) | 8.72% | (18.09)% | (7.70)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(6) | 0.00%(7) | 0.00% | 0.00%(7) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.85%(7) | 1.77% | 1.36%(7) | |
Portfolio Turnover Rate | 9% | 26% | 3% | |
Net Assets, End of Period (in thousands) | $5,229 | $3,179 | $6 | |
(1) | Six months ended January 31, 2010 (unaudited). | |||
(2) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(3) | Computed using average shares outstanding throughout the period. | |||
(4) | Per-share amount was less than $0.005. | |||
(5) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | |||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | ||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | ||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | ||||
guidelines and does not result in any gain or loss of value between one class and another. | ||||
(6) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. Other expenses, which include the | |||
fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not exceed 0.005%. | ||||
(7) | Annualized. | |||
See Notes to Financial Statements. |
96
LIVESTRONG 2050 Portfolio | ||||
Advisor Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010(1) | 2009 | 2008(2) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $7.45 | $9.23 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.06 | 0.07 | 0.02 | |
Net Realized and Unrealized Gain (Loss) | 0.57 | (1.79) | (0.79) | |
Total From Investment Operations | 0.63 | (1.72) | (0.77) | |
Distributions | ||||
From Net Investment Income | (0.05) | (0.06) | — | |
From Net Realized Gains | —(4) | — | — | |
Total Distributions | (0.05) | (0.06) | — | |
Net Asset Value, End of Period | $8.03 | $7.45 | $9.23 | |
Total Return(5) | 8.52% | (18.52)% | (7.70)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(6) | 0.45%(7) | 0.45% | 0.45%(7) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.40%(7) | 1.32% | 0.91%(7) | |
Portfolio Turnover Rate | 9% | 26% | 3% | |
Net Assets, End of Period (in thousands) | $6,447 | $336 | $6 | |
(1) | Six months ended January 31, 2010 (unaudited). | |||
(2) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(3) | Computed using average shares outstanding throughout the period. | |||
(4) | Per-share amount was less than $0.005. | |||
(5) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | |||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | ||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | ||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | ||||
guidelines and does not result in any gain or loss of value between one class and another. | ||||
(6) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(7) | Annualized. | |||
See Notes to Financial Statements. |
97
LIVESTRONG 2050 Portfolio | ||||
R Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010(1) | 2009 | 2008(2) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $7.44 | $9.22 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.05 | 0.08 | 0.02 | |
Net Realized and Unrealized Gain (Loss) | 0.57 | (1.81) | (0.80) | |
Total From Investment Operations | 0.62 | (1.73) | (0.78) | |
Distributions | ||||
From Net Investment Income | (0.03) | (0.05) | — | |
From Net Realized Gains | —(4) | — | — | |
Total Distributions | (0.03) | (0.05) | — | |
Net Asset Value, End of Period | $8.03 | $7.44 | $9.22 | |
Total Return(5) | 8.40% | (18.66)% | (7.80)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(6) | 0.70%(7) | 0.70% | 0.70%(7) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.15%(7) | 1.07% | 0.66%(7) | |
Portfolio Turnover Rate | 9% | 26% | 3% | |
Net Assets, End of Period (in thousands) | $1,358 | $186 | $6 | |
(1) | Six months ended January 31, 2010 (unaudited). | |||
(2) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(3) | Computed using average shares outstanding throughout the period. | |||
(4) | Per-share amount was less than $0.005. | |||
(5) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | |||
are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating | ||||
the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would | ||||
more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC | ||||
guidelines and does not result in any gain or loss of value between one class and another. | ||||
(6) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(7) | Annualized. | |||
See Notes to Financial Statements. |
98
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs, or 403(b), 457 and qualified plans are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. You have the right to revoke your withholding election at any time and any election you make may remain in effect until revoked by filing a new election.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld. State taxes will be withheld from your distribution in accordance with the respective state rules.
Proxy Voting Guidelines
American Century Investment Management, Inc., the funds’ investment advisor, is responsible for exercising the voting rights associated with the securities purchased and/or held by the funds. A description of the policies and procedures the advisor uses in fulfilling this responsibility is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century Investments’ website at americancentury.com and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the “About Us” page at americancentury.com. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The funds’ Forms N-Q are available on the SEC’s website at sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The funds also make their complete schedule of portfolio holdings for the most recent quarter of their fiscal year available on their website at americancentury.com and, upon request, by calling 1-800-345-2021.
99
Index Definitions |
The following indices are used to illustrate investment market, sector, or style performance or to serve as fund performance comparisons. They are not investment products available for purchase.
The Barclays Capital U.S. Aggregate Bond Index represents securities that are taxable, registered with the Securities and Exchange Commission, and U.S. dollar denominated. The index covers the U.S. investment-grade fixed-rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.
The Citigroup Non-US World Government Bond Index is based on the Citigroup World Bond Index, and excludes issues denominated in U.S. dollars. The index measures the total return of government securities in major sectors of the international bond market.
The Citigroup US Broad Investment-Grade (BIG) Bond Index is a market-capitalization-weighted index that includes fixed-rate Treasury, government-sponsored, mortgage, asset-backed, and investment-grade issues with a maturity of one year or longer.
Morgan Stanley Capital International (MSCI) has developed several indices that measure the performance of foreign stock markets.
The MSCI EAFE (Europe, Australasia, Far East) Index is designed to measure developed market equity performance, excluding the U.S. and Canada.
The MSCI EM (Emerging Markets) Index represents the performance of stocks in global emerging market countries.
The Russell 1000® Index is a market-capitalization weighted, large-cap index created by Frank Russell Company to measure the performance of the 1,000 largest publicly traded U.S. companies, based on total market capitalization.
The Russell 2000® Index is a market-capitalization weighted index created by Frank Russell Company to measure the performance of the 2,000 smallest of the 3,000 largest publicly traded U.S. companies, based on total market capitalization.
The Russell 3000® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.
The Russell Midcap® Index measures the performance of the 800 smallest of the 1,000 largest publicly traded U.S. companies, based on total market capitalization.
100
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67772x104x1.jpg)
Contact Us | |
americancentury.com | |
Automated Information Line | 1-800-345-8765 |
Investor Services Representative | 1-800-345-2021 or |
816-531-5575 | |
Business, Not-For-Profit, Employer-Sponsored | |
Retirement Plans | 1-800-345-3533 |
Banks and Trust Companies, Broker-Dealers, | |
Financial Professionals, Insurance Companies | 1-800-345-6488 |
Telecommunications Device for the Deaf | 1-800-634-4113 |
American Century Asset Allocation Portfolios, Inc. | |
Investment Advisor: | |
American Century Investment Management, Inc. | |
Kansas City, Missouri |
This report and the statements it contains are submitted for the general
information of our shareholders. The report is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective prospectus.
American Century Investment Services, Inc., Distributor
©2010 American Century Proprietary Holdings, Inc. All rights reserved.
1003
CL-SAN-67772N
Semiannual Report |
January 31, 2010 |
American Century Investments® |
One Choice Portfolio®: Very Conservative
One Choice Portfolio®: Conservative
One Choice Portfolio®: Moderate
One Choice Portfolio®: Aggressive
One Choice Portfolio®: Very Aggressive
Table of Contents |
President’s Letter | 2 |
Independent Chairman’s Letter | 3 |
One Choice Portfolios | |
Performance | 4 |
Portfolio Commentary | 9 |
Underlying Fund Allocations. | 9 |
Market Index Total Returns | 10 |
Shareholder Fee Examples | 13 |
Financial Statements | |
Schedule of Investments | 15 |
Statement of Assets and Liabilities | 18 |
Statement of Operations | 20 |
Statement of Changes in Net Assets | 22 |
Notes to Financial Statements | 25 |
Financial Highlights | 35 |
Other Information | |
Additional Information | 40 |
Index Definitions | 41 |
The opinions expressed in the Portfolio Commentary reflect those of the portfolio management team as of the date of the report, and do not necessarily represent the opinions of American Century Investments or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securit ies is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67773x4x1.jpg)
Dear Investor:
Thank you for taking time to review the following pages, which provide investment performance and portfolio information for the financial reporting period ended January 31, 2010, along with the perspective and commentary of our experienced portfolio management team. We appreciate your trust in American Century Investments at this volatile, transitional time in the economy and investment markets.
As the upheavals associated with the “Great Recession” gradually subside, our senior management team has put considerable thought into how the investment environment has changed and what challenges and opportunities await us. Critical factors that we are anticipating in 2010 include marked shifts in investment and spending behavior compared with the past decade, along with consolidation in our industry.
Most importantly, we think the U.S. economic recovery will be slow and extended. The economy and capital markets have come a long way since Lehman Brothers collapsed in the third quarter of 2008, but 2010 will likely bring continuing challenges. The U.S. stock market’s rebound since last March and the second-half economic surge in 2009 were fueled largely by corporate cost-cutting and unprecedented monetary and fiscal stimulus, including some key programs that have since expired or been scaled back.
Meanwhile, the resilient but struggling consumer sector still faces high unemployment, heavy debt burdens, tight credit conditions, and a housing market that is starting to stabilize, but remains vulnerable. Much of our investment positioning in 2009 cautiously reflected these still unstable economic fundamentals, leading to underperformance, in some cases, versus market benchmarks buoyed by the rally of riskier assets. We still support our fundamentally based positioning because we believe strongly that some markets—driven more by technical factors than fundamentals—have advanced further than underlying economic conditions warrant, and remain susceptible to the possibility of more volatility ahead.
Thank you for your continued confidence in us.
Sincerely,
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67773x4x2.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Independent Chairman’s Letter |
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67773x5x1.jpg)
In my first letter to shareholders of the American Century Investments funds, I invited you to contact me with your questions. I have been gratified with your response. Most shareholder inquiries to date have related to specific fund performance issues. As I noted in my individual responses, your board through the Fund Performance Committee continues to stress improved performance in our quarterly meetings with chief investment officers and fund managers.
An important part of our fund performance review process is a face-to-face meeting with portfolio managers. The board traveled to the American Century Investments office in Mountain View, California to meet with the fund of funds and asset allocation portfolio management teams. These meetings validated the importance of thorough reviews of investment opportunities by the credit management personnel resident in that office. As a result of their efforts, American Century Investments funds were able to avoid the “toxic assets” that plagued many other fund families in 2008.
From April through June 2009, the board conducted its annual review of the advisory contracts between American Century Investments and each fund. Our efforts involved a review of fund information, including assets under management; total expense ratio compared to peers; economies of scale; fee breakpoints that reduce shareholder costs as assets increase; performance compared to peers and benchmarks; and the quality of services provided to fund shareholders. A detailed discussion of board considerations in connection with advisory contract renewal is included annually in each fund’s shareholder reports. During this review, the board focuses on a detailed comparison of the competitive position of each fund and has negotiated more than 60 breakpoints or fee reductions in the past five years.
The board looks forward to another year of work on your behalf and your comments are appreciated. You are invited to email me at dhpratt@fundboardchair.com.
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67773x5x2.jpg)
3
Performance |
One Choice Portfolios | |||||||
Total Returns as of January 31, 2010 | |||||||
Average Annual Returns | |||||||
Ticker | Since | Inception | |||||
Symbol | 6 months(1) | 1 year | 5 years | Inception | Date | ||
One Choice Portfolio: | |||||||
Very Conservative — | |||||||
Investor Class | AONIX | 4.40% | 13.28% | 3.77% | 4.17% | 9/30/04 | |
One Choice Portfolio: | |||||||
Conservative — Investor Class | AOCIX | 5.79% | 19.23% | 3.44% | 4.13% | 9/30/04 | |
One Choice Portfolio: | |||||||
Moderate — Investor Class | AOMIX | 6.94% | 25.01% | 3.31% | 4.35% | 9/30/04 | |
One Choice Portfolio: | |||||||
Aggressive — Investor Class | AOGIX | 7.63% | 29.43% | 2.98% | 4.18% | 9/30/04 | |
One Choice Portfolio: Very | |||||||
Aggressive — Investor Class | AOVIX | 7.89% | 32.01% | 2.06% | 3.53% | 9/30/04 | |
Russell 3000 Index(2) | — | 10.16% | 35.05% | 0.57% | 1.86% | — | |
Barclays Capital U.S. | |||||||
Aggregate Bond Index(3) | — | 3.87% | 8.51% | 5.16% | 5.14% | — | |
Citigroup US Broad | |||||||
Investment-Grade Bond Index | — | 3.64% | 7.54% | 5.40% | 5.37% | — | |
(1) | Total returns for periods less than one year are not annualized. | ||||||
(2) | Data provided by Lipper Inc. – A Reuters Company. © 2010 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper | ||||||
content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be | |||||||
liable for any errors or delays in the content, or for any actions taken in reliance thereon. | |||||||
The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be | |||||||
reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or | |||||||
sell any of the securities herein is being made by Lipper. | |||||||
(3) | In January of 2010, the fund’s fixed-income benchmark changed from the Citigroup US Broad Investment-Grade Bond Index to the Barclays | ||||||
Capital U.S. Aggregate Bond Index. This reflects a change in the portfolio management analytics software used by American Century | |||||||
Investments’ fixed-income teams. The investment process is unchanged. |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays Capital U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for each portfolio’s asset allocations as of January 31, 2010.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and the risk level assigned to each portfolio is intended to reflect the relative short-term price volatility among the funds in each. International investing involves special risks, such a s political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. As interest rates rise, bond values will decline.
Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses that reduce returns, while the total returns of the indices do not.
4
One Choice Portfolios
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67773x7x1.jpg)
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67773x7x2.jpg)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and the risk level assigned to each portfolio is intended to reflect the relative short-term price volatility among the funds in each. International investing involves special risks, such a s political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. As interest rates rise, bond values will decline.
Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses that reduce returns, while the total returns of the indices do not.
5
One Choice Portfolios
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67773x8x1.jpg)
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67773x8x2.jpg)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and the risk level assigned to each portfolio is intended to reflect the relative short-term price volatility among the funds in each. International investing involves special risks, such a s political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. As interest rates rise, bond values will decline.
Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses that reduce returns, while the total returns of the indices do not.
6
One Choice Portfolios
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67773x9x1.jpg)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and the risk level assigned to each portfolio is intended to reflect the relative short-term price volatility among the funds in each. International investing involves special risks, such a s political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. As interest rates rise, bond values will decline.
Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses that reduce returns, while the total returns of the indices do not.
7
One Choice Portfolios | ||||||
One-Year Returns Over Life of Class | ||||||
Periods ended January 31 | ||||||
2005* | 2006 | 2007 | 2008 | 2009 | 2010 | |
One Choice Portfolio: | ||||||
Very Conservative — Investor Class | 3.35% | 4.03% | 6.75% | 5.57% | -9.40% | 13.28% |
One Choice Portfolio: | ||||||
Conservative — Investor Class | 4.78% | 7.01% | 8.46% | 4.61% | -18.19% | 19.23% |
One Choice Portfolio: | ||||||
Moderate — Investor Class | 6.65% | 11.62% | 10.41% | 3.94% | -26.51% | 25.01% |
One Choice Portfolio: | ||||||
Aggressive — Investor Class | 7.45% | 15.18% | 11.32% | 4.41% | -33.17% | 29.43% |
One Choice Portfolio: | ||||||
Very Aggressive — Investor Class | 8.65% | 17.80% | 12.62% | 3.46% | -38.87% | 32.01% |
Russell 3000 Index | 7.22% | 12.67% | 14.11% | -3.08% | -38.86% | 35.05% |
Barclays Capital U.S. | ||||||
Aggregate Bond Index | 1.59% | 1.80% | 4.28% | 8.81% | 2.59% | 8.51% |
Citigroup US Broad | ||||||
Investment-Grade Bond Index | 1.65% | 1.91% | 4.32% | 9.32% | 4.06% | 7.54% |
*From 9/30/04, the Investor Class’s inception date. Not annualized. |
Total Annual Fund Operating Expenses | |
One Choice Portfolio: Very Conservative — Investor Class | 0.69% |
One Choice Portfolio: Conservative — Investor Class | 0.78% |
One Choice Portfolio: Moderate — Investor Class | 0.87% |
One Choice Portfolio: Aggressive — Investor Class | 0.96% |
One Choice Portfolio: Very Aggressive — Investor Class | 1.03% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and the risk level assigned to each portfolio is intended to reflect the relative short-term price volatility among the funds in each. International investing involves special risks, such a s political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. As interest rates rise, bond values will decline.
Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses that reduce returns, while the total returns of the indices do not.
8
Portfolio Commentary |
One Choice Portfolios
Portfolio Managers: Enrique Chang, Scott Wittman, and Irina Torelli
Performance Summary
Each of the five One Choice Portfolios advanced for the six months ended January 31, 2010, with returns ranging from 4.40%(1) for One Choice Portfolio: Very Conservative to 7.89%(1) for One Choice Portfolio: Very Aggressive (see pages 4–8 for more detailed performance information). The gains reflected positive performance across all asset classes represented in the Portfolios during the six-month period.
Because of the Portfolios’ strategic exposure to a variety of asset classes, a review of the financial markets helps explain much of their performance.
Stock Market Review
The U.S. stock market gained ground for the six-month period, extending a rally that began in March 2009. The market’s advance was driven by increasing investor confidence regarding a potential recovery from the sharp economic downturn in late 2008 and early 2009.
Underlying Fund Allocations as a % of net assets as of January 31, 2010(2) | ||||||
Very | Very | |||||
Conservative | Conservative | Moderate | Aggressive | Aggressive | ||
Equity | ||||||
Equity Growth Fund | 4.4% | 8.3% | 15.4% | 13.9% | 17.4% | |
Growth Fund | 2.9% | 5.2% | 8.5% | 14.9% | 18.3% | |
Large Company Value Fund | 7.4% | 10.3% | 8.9% | 7.9% | 10.1% | |
Real Estate Fund | 2.0% | 2.0% | 2.0% | 2.0% | 2.0% | |
Small Company Fund | 1.0% | 1.5% | 2.0% | 2.3% | 2.5% | |
Value Fund | 4.7% | 6.5% | 5.0% | 4.3% | 5.6% | |
VistaSM Fund | 1.5% | 3.8% | 6.7% | 13.0% | 16.1% | |
Emerging Markets Fund | — | — | 3.9% | 6.4% | 7.4% | |
International Growth Fund | — | 5.8% | 9.8% | 12.2% | 15.4% | |
Total Equity | 23.9% | 43.4% | 62.2% | 76.9% | 94.8% | |
Fixed Income | ||||||
Diversified Bond Fund | 33.2% | 31.8% | 21.7% | 13.7% | 4.2% | |
High-Yield Fund | — | — | 2.1% | 4.2% | — | |
Inflation-Adjusted Bond Fund | 10.1% | 9.1% | 6.1% | 4.2% | — | |
International Bond Fund | 9.9% | 7.9% | 2.9% | — | — | |
Total Fixed Income | 53.2% | 48.8% | 32.8% | 22.1% | 4.2% | |
Prime Money Market Fund | 22.9% | 7.8% | 5.0% | 1.0% | 1.0% | |
Other Assets and Liabilities | —(3) | —(3) | —(3) | —(3) | —(3) | |
(1) | Totals returns for periods less than one year are not annualized. | |||||
(2) | Underlying fund investments represent Investor Class. | |||||
(3) | Category is less than 0.05% of total net assets. |
9
One Choice Portfolios
Signs of improvement were evident across many segments of the economy during the six months—home sales began to rise, manufacturing activity picked up, and retail sales figures showed uneven but promising results. Consequently, the U.S. economy grew at a 2.2% annual rate in the third quarter of 2009—its first positive quarterly growth rate in more than a year—and a 5.9% annual rate in the fourth quarter. In addition, cost-management efforts at many companies helped generate better-than-expected corporate earnings during the six-month period.
There were exceptions to the favorable economic data—most notably, the unemployment rate remained persistently elevated, reaching a 26-year high of 10.1% in October 2009 before falling back to 9.7% by the end of January 2010. Nonetheless, the overall economic picture was one of gradual improvement, and the stock market responded with a steady rally that persisted throughout much of the six-month period.
Stocks finished the period on a down note, giving back some of their gains late in the period as investors expressed some skepticism about the sustainability of the nascent economic recovery. Despite this hiccup, however, the broad stock indices gained approximately 10% overall for the six-month period. As the table below indicates, mid-cap stocks posted the best results, while small-cap stocks lagged. Value-oriented shares outpaced growth issues across all market capitalizations, most notably in the small-cap segment of the market.
International equity markets also advanced during the six-month period as optimistic investors embraced the hope that the improving economic environment would blossom into a full-fledged global recovery in 2010. Emerging markets generated the best returns, benefiting the most from rising expectations for a global economic expansion. Among developed markets, countries along the Pacific Rim were the top performers, with the notable exception of Japan.
Market Index Total Returns | |
For the six months ended January 31, 2010* | |
U.S. Stocks | |
Russell 1000 Index (Large-Cap) | 10.27% |
Russell Midcap Index | 13.45% |
Russell 2000 Index (Small-Cap) | 8.86% |
International Stocks | |
MSCI EAFE (Europe, Australasia, Far East) Index | 6.93% |
MSCI EM (Emerging Markets) Index | 11.40% |
U.S. Fixed Income | |
Barclays Capital U.S. Aggregate Bond Index | 3.87% |
Barclays Capital 10-Year U.S. Treasury Note (Bellwether) | 0.58% |
Barclays Capital Three-Month U.S. Treasury Bill (Bellwether) | 0.10% |
International Bonds | |
Citigroup Non-U.S. World Government Bond Index | 2.47% |
*Total returns for periods less than one year are not annualized. |
10
One Choice Portfolios
Bond Market Review
U.S. bonds gained ground during the period, though to a lesser degree than the equity market. The bond market’s advance was led primarily by corporate bonds, which benefited substantially from the improving economic environment and higher-than-anticipated corporate profits. In particular, high-yield corporate bonds posted double-digit gains for the period.
In contrast, Treasury and government agency securities generated modestly positive returns and lagged the rest of the bond market. As the economic environment improved, Treasury securities fell out of favor as investors shifted to other higher-yielding segments of the bond market. In addition, an increase in supply—as the government issued more securities to fund its economic stimulus efforts—weighed on the Treasury market.
Mortgage-backed securities performed in line with the broad bond market. The positive impact of the Federal Reserve’s purchases of mortgage-backed securities to support the housing market was largely offset by an increase in mortgage refinancing activity.
International fixed-income markets also advanced for the reporting period, though they lagged the performance of the domestic bond market. While many countries continued to issue new debt to fund economic stimulus programs, much like the U.S., the new supply was more than offset by strong demand from financial institutions seeking to maintain liquidity and rebuild their balance sheets. In addition, a weaker U.S. dollar provided a modest boost to foreign bond returns for U.S. investors. Although the dollar appreciated versus the euro, it declined versus the Japanese yen and other major currencies.
Portfolio Performance
Each One Choice Portfolio is a “fund of funds” that invests in other Amer-ican Century Investments mutual funds to achieve its investment objective and target asset allocation. (See page 9 for the specific underlying fund allocations for each One Choice Portfolio.)
Within the Portfolios, every stock fund gained ground during the six-month period. The top performer was the Real Estate Fund, which gained 24% amid improving economic conditions, continued access to capital, and a potential buyer’s market for commercial real estate in 2010 as financial institutions look to unload foreclosed properties. The Value and Emerging Markets funds also generated double-digit gains for the reporting period. The weakest performer on the equity side was the Vista Fund, the Portfolios’ mid-cap growth component, which faced performance headwinds as stocks exhibiting accelerating growth and price momentum were out of favor for much of the period.
The leading performers among the Portfolios’ fixed-income components were the High-Yield Fund, which returned more than 11% for the reporting period, and the Inflation-Adjusted Bond Fund, which benefited from concerns that the economic recovery could lead to higher inflation down the road. The Diversified Bond Fund, the Portfolios’ main fixed-income holding, performed in line with the broad domestic bond market, while the International Bond Fund posted a fractionally positive return for the six-month period.
11
One Choice Portfolios
Portfolio Strategy
Each Portfolio has a “neutral” asset mix (the target allocations for stock, bond, and money market funds) that remains fixed over time. Our management approach involves making modest tactical adjustments to each Portfolio’s actual asset mix to add value and improve the Portfolios’ ability to meet their investment objectives.
Over the last six months, we continued to position the Portfolios defensively, with a modest overweight position in bonds and a corresponding underweight position in stocks. This defensive positioning reflected our view that the road to a full financial and economic recovery was likely to be long and gradual, with many bumps along the way. However, investors’ growing optimism and appetite for risk fueled a more substantial rise in stocks than in bonds during the period, and as a result, this strategy detracted from overall performance.
In the equity portion of the Portfolios, a continued emphasis on growth over value—via an overweight position in the Growth Fund and underweight positions in the Value and Large Company Value funds—detracted from results as the two value components outperformed Growth for the six-month period, reflecting a similar pattern in the broad equity market. Stock selection added value in the International Growth and Small Company funds, but security selection weighed on performance in many of the remaining equity components, most notably the Vista Fund.
The Diversified Bond Fund remained the largest fixed-income component in each Portfolio. Sector allocation contributed positively to Diversified Bond’s performance, particularly an overweight position in corporate bonds and an underweight position in Treasury bonds. During the period, the management team positioned Diversified Bond for a flatter yield curve—a narrower gap between short- and long-term interest rates—as this gap reached historically wide levels in late 2009. Although the High-Yield Fund (represented only in One Choice Portfolio: Moderate and One Choice Portfolio: Aggressive) generated the best absolute return among the Portfolios’ fixed-income components, its relatively conservative positioning caused it to underperform its benchmark for the six-month period.
Outlook
Despite improving economic conditions over the past six months, we believe that the global recovery still faces several headwinds. Unemployment remains persistently high, consumers and businesses continue to deleverage amid elevated debt levels, and the federal government is producing sizable budget deficits in its efforts to sustain the recovery. Perhaps the greatest challenge will be whether the economy can maintain its momentum when the government’s temporary stimulus programs end.
Given this environment, we plan to maintain the portfolio’s current defensive positioning, with a slight underweight position in stocks and a matching overweight position in bonds. We believe that this approach, along with the Portfolios’ broad diversification, will add value in an uncertain investment environment.
12
Shareholder Fee Examples (Unaudited) |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/ exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds. As a shareholder in the underlying Amer-ican Century Investments funds, your fund will indirectly bear its pro rata share of the expenses incurred by the underlying funds. These expenses are not included in the fund’s annualized expense ratio or the expenses paid during the period. These expenses are, however, included in the effective expenses paid during the period.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from August 1, 2009 to January 31, 2010.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or Institutional Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. We will not charge the fee as long as you choose to manage your accounts exclusively online. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical
13
account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Effective | |||||||
Expenses | Expenses | ||||||
Beginning | Ending | Paid During | Paid During | Effective | |||
Account | Account | Period(1) | Annualized | Period(2) | Annualized | ||
Value | Value | 8/1/09 - | Expense | 8/1/09 - | Expense | ||
8/1/09 | 1/31/10 | 1/31/10 | Ratio(1) | 1/31/10 | Ratio(2) | ||
One Choice Portfolio: Very Conservative | |||||||
Actual | $1,000 | $1,044.00 | $0.00 | 0.00%(3) | $3.50 | 0.68% | |
Hypothetical | $1,000 | $1,025.21 | $0.00 | 0.00%(3) | $3.47 | 0.68% | |
One Choice Portfolio: Conservative | |||||||
Actual | $1,000 | $1,057.90 | $0.00 | 0.00%(3) | $3.99 | 0.77% | |
Hypothetical | $1,000 | $1,025.21 | $0.00 | 0.00%(3) | $3.92 | 0.77% | |
One Choice Portfolio: Moderate | |||||||
Actual | $1,000 | $1,069.40 | $0.00 | 0.00%(3) | $4.54 | 0.87% | |
Hypothetical | $1,000 | $1,025.21 | $0.00 | 0.00%(3) | $4.43 | 0.87% | |
One Choice Portfolio: Aggressive | |||||||
Actual | $1,000 | $1,076.30 | $0.00 | 0.00%(3) | $5.02 | 0.96% | |
Hypothetical | $1,000 | $1,025.21 | $0.00 | 0.00%(3) | $4.89 | 0.96% | |
One Choice Portfolio: Very Aggressive | |||||||
Actual | $1,000 | $1,078.90 | $0.00 | 0.00%(3) | $5.40 | 1.03% | |
Hypothetical | $1,000 | $1,025.21 | $0.00 | 0.00%(3) | $5.24 | 1.03% | |
(1) | Expenses are equal to the fund’s annualized expense ratio listed in the table above, multiplied by the average account value over the period, | ||||||
multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. The fees and | |||||||
expenses of the underlying American Century Investments funds in which the fund invests are not included in the fund’s annualized expense ratio. | |||||||
(2) | Effective expenses reflect the sum of expenses borne directly by the fund plus the fund’s pro rata share of the weighted average expense ratio of | ||||||
the underlying funds in which it invests. The effective annualized expense ratio combines the fund’s annualized expense ratio and the annualized | |||||||
weighted average expense ratio of the underlying funds. The annualized weighted average expense ratio of the underlying funds for the one-half | |||||||
year period reflects the actual expense ratio of each underlying fund from its most recent shareholder report, annualized and weighted for the | |||||||
fund’s relative average investment therein during the period. | |||||||
(3) | Other expenses, which include the fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not | ||||||
exceed 0.005%. |
14
Schedule of Investments |
One Choice Portfolios | ||||||||
JANUARY 31, 2010 (UNAUDITED) | ||||||||
Shares | Value | Shares | Value | |||||
One Choice Portfolio: Very Conservative | One Choice Portfolio: Conservative | |||||||
Mutual Funds(1) — 100.0% | Mutual Funds(1) — 100.0% | |||||||
DOMESTIC FIXED INCOME FUNDS — 43.3% | DOMESTIC FIXED INCOME FUNDS — 40.9% | |||||||
Diversified Bond Fund | Diversified Bond Fund | |||||||
Investor Class | 4,315,550 | $ 46,090,074 | Investor Class | 8,767,192 | $ 93,633,611 | |||
Inflation-Adjusted Bond | Inflation-Adjusted Bond | |||||||
Fund Investor Class | 1,201,097 | 13,992,780 | Fund Investor Class | 2,312,377 | 26,939,192 | |||
60,082,854 | 120,572,803 | |||||||
DOMESTIC EQUITY FUNDS — 23.9% | DOMESTIC EQUITY FUNDS — 37.6% | |||||||
Equity Growth Fund | Equity Growth Fund | |||||||
Investor Class | 347,300 | 6,157,629 | Investor Class | 1,382,455 | 24,510,927 | |||
Growth Fund Investor Class | 194,301 | 4,084,207 | Growth Fund Investor Class | 727,971 | 15,301,951 | |||
Large Company Value Fund | Large Company Value Fund | |||||||
Investor Class | 2,103,803 | 10,308,635 | Investor Class | 6,214,253 | 30,449,840 | |||
Real Estate Fund | Real Estate Fund | |||||||
Investor Class | 204,253 | 2,759,458 | Investor Class | 441,030 | 5,958,315 | |||
Small Company Fund | Small Company Fund | |||||||
Investor Class | 228,991 | 1,369,366 | Investor Class | 732,571 | 4,380,775 | |||
Value Fund Investor Class | 1,299,659 | 6,524,288 | Value Fund Investor Class | 3,785,671 | 19,004,068 | |||
Vista Fund Investor Class(2) | 160,002 | 2,009,625 | Vista Fund Investor Class(2) | 892,797 | 11,213,530 | |||
33,213,208 | 110,819,406 | |||||||
MONEY MARKET FUNDS — 22.9% | INTERNATIONAL FIXED INCOME FUNDS — 7.9% | |||||||
Prime Money Market Fund | International Bond Fund | |||||||
Investor Class | 31,711,289 | 31,711,289 | Investor Class | 1,645,115 | 23,426,437 | |||
INTERNATIONAL FIXED INCOME FUNDS — 9.9% | MONEY MARKET FUNDS — 7.8% | |||||||
International Bond Fund | Prime Money Market Fund | |||||||
Investor Class | 968,254 | 13,787,937 | Investor Class | 23,003,104 | 23,003,104 | |||
TOTAL INVESTMENT | INTERNATIONAL EQUITY FUNDS — 5.8% | |||||||
SECURITIES — 100.0% | International Growth Fund | |||||||
(Cost $130,905,269) | 138,795,288 | Investor Class | 1,843,754 | 17,239,100 | ||||
OTHER ASSETS AND LIABILITIES(3) | 8 | TOTAL INVESTMENT | ||||||
TOTAL NET ASSETS — 100.0% | $138,795,296 | SECURITIES — 100.0% | ||||||
(Cost $292,036,950) | 295,060,850 | |||||||
Notes to Schedule of Investments | OTHER ASSETS AND LIABILITIES(3) | 28,641 | ||||||
(1) | Investments are funds within the American Century Investments | TOTAL NET ASSETS — 100.0% | $295,089,491 | |||||
family of funds, of which certain funds may be deemed to be under | ||||||||
common control because of the same board of directors. | Notes to Schedule of Investments | |||||||
(2) | Non-income producing. | (1) | Investments are funds within the American Century Investments | |||||
(3) | Category is less then 0.05% of total net assets. | family of funds, of which certain funds may be deemed to be under | ||||||
common control because of the same board of directors. | ||||||||
(2) | Non-income producing. | |||||||
(3) | Category is less than 0.05% of total net assets. | |||||||
See Notes to Financial Statements. |
15
One Choice Portfolios | ||||||||
Shares | Value | Shares | Value | |||||
One Choice Portfolio: Moderate | One Choice Portfolio: Aggressive | |||||||
Mutual Funds(1) — 100.0% | Mutual Funds(1) — 100.0% | |||||||
DOMESTIC EQUITY FUNDS — 48.5% | DOMESTIC EQUITY FUNDS — 58.3% | |||||||
Equity Growth Fund | Equity Growth Fund | |||||||
Investor Class | 5,253,195 | $ 93,139,147 | Investor Class | 3,111,837 | $ 55,172,870 | |||
Growth Fund Investor Class | 2,461,306 | 51,736,652 | Growth Fund Investor Class | 2,803,561 | 58,930,852 | |||
Large Company Value Fund | Large Company Value Fund | |||||||
Investor Class | 11,021,799 | 54,006,815 | Investor Class | 6,437,756 | 31,545,004 | |||
Real Estate Fund | Real Estate Fund | |||||||
Investor Class | 920,096 | 12,430,497 | Investor Class | 594,565 | 8,032,573 | |||
Small Company Fund | Small Company Fund | |||||||
Investor Class | 2,036,502 | 12,178,282 | Investor Class | 1,491,445 | 8,918,841 | |||
Value Fund Investor Class | 6,073,923 | 30,491,094 | Value Fund Investor Class | 3,361,498 | 16,874,720 | |||
Vista Fund Investor Class(2) | 3,229,977 | 40,568,511 | Vista Fund Investor Class(2) | 4,116,408 | 51,702,085 | |||
294,550,998 | 231,176,945 | |||||||
DOMESTIC FIXED INCOME FUNDS — 29.9% | DOMESTIC FIXED INCOME FUNDS — 22.1% | |||||||
Diversified Bond Fund | Diversified Bond Fund | |||||||
Investor Class | 12,321,191 | 131,590,320 | Investor Class | 5,100,825 | 54,476,811 | |||
High-Yield Fund | High-Yield Fund | |||||||
Investor Class | 2,153,933 | 12,535,890 | Investor Class | 2,833,277 | 16,489,672 | |||
Inflation-Adjusted Bond | Inflation-Adjusted Bond | |||||||
Fund Investor Class | 3,175,476 | 36,994,295 | Fund Investor Class | 1,443,542 | 16,817,265 | |||
181,120,505 | 87,783,748 | |||||||
INTERNATIONAL EQUITY FUNDS — 13.7% | INTERNATIONAL EQUITY FUNDS — 18.6% | |||||||
Emerging Markets Fund | Emerging Markets Fund | |||||||
Investor Class | 3,393,582 | 23,924,753 | Investor Class | 3,617,583 | 25,503,960 | |||
International Growth Fund | International Growth Fund | |||||||
Investor Class | 6,340,718 | 59,285,713 | Investor Class | 5,177,110 | 48,405,979 | |||
83,210,466 | 73,909,939 | |||||||
MONEY MARKET FUNDS — 5.0% | MONEY MARKET FUNDS — 1.0% | |||||||
Prime Money Market Fund | Prime Money Market Fund | |||||||
Investor Class | 30,521,818 | 30,521,818 | Investor Class | 4,079,442 | 4,079,442 | |||
INTERNATIONAL FIXED INCOME FUNDS — 2.9% | TOTAL INVESTMENT | |||||||
International Bond Fund | SECURITIES — 100.0% | |||||||
Investor Class | 1,231,236 | 17,532,801 | (Cost $424,814,334) | 396,950,074 | ||||
TOTAL INVESTMENT | OTHER ASSETS AND LIABILITIES(3) | 9,106 | ||||||
SECURITIES — 100.0% | TOTAL NET ASSETS — 100.0% | $396,959,180 | ||||||
(Cost $630,630,151) | 606,936,588 | |||||||
OTHER ASSETS AND LIABILITIES(3) | 352 | Notes to Schedule of Investments | ||||||
TOTAL NET ASSETS — 100.0% | $606,936,940 | (1) | Investments are funds within the American Century Investments | |||||
family of funds, of which certain funds may be deemed to be under | ||||||||
Notes to Schedule of Investments | common control because of the same board of directors. | |||||||
(1) | Investments are funds within the American Century Investments | (2) | Non-income producing. | |||||
family of funds, of which certain funds may be deemed to be under | (3) | Category is less than 0.05% of total net assets. | ||||||
common control because of the same board of directors. | ||||||||
(2) | Non-income producing. | |||||||
(3) | Category is less than 0.05% of total net assets. | |||||||
See Notes to Financial Statements. |
16
One Choice Portfolios | |||
Shares | Value | ||
One Choice Portfolio: Very Aggressive | |||
Mutual Funds(1) — 100.0% | |||
DOMESTIC EQUITY FUNDS — 72.0% | |||
Equity Growth Fund | |||
Investor Class | 1,551,539 | $ 27,508,786 | |
Growth Fund Investor Class | 1,376,700 | 28,938,234 | |
Large Company Value Fund | |||
Investor Class | 3,260,053 | 15,974,260 | |
Real Estate Fund | |||
Investor Class | 239,699 | 3,238,334 | |
Small Company Fund | |||
Investor Class | 670,859 | 4,011,737 | |
Value Fund Investor Class | 1,761,524 | 8,842,850 | |
Vista Fund Investor Class(2) | 2,033,556 | 25,541,463 | |
114,055,664 | |||
INTERNATIONAL EQUITY FUNDS — 22.8% | |||
Emerging Markets Fund | |||
Investor Class | 1,662,595 | 11,721,295 | |
International Growth Fund | |||
Investor Class | 2,613,364 | 24,434,953 | |
36,156,248 | |||
DOMESTIC FIXED INCOME FUNDS — 4.2% | |||
Diversified Bond Fund | |||
Investor Class | 618,044 | 6,600,710 | |
MONEY MARKET FUNDS — 1.0% | |||
Prime Money Market Fund | |||
Investor Class | 1,610,882 | 1,610,882 | |
TOTAL INVESTMENT | |||
SECURITIES — 100.0% | |||
(Cost $174,378,081) | 158,423,504 | ||
OTHER ASSETS AND LIABILITIES(3) | 10 | ||
TOTAL NET ASSETS — 100.0% | $158,423,514 | ||
Notes to Schedule of Investments | |||
(1) | Investments are funds within the American Century Investments | ||
family of funds, of which certain funds may be deemed to be under | |||
common control because of the same board of directors. | |||
(2) | Non-income producing. | ||
(3) | Category is less than 0.05% of total net assets. | ||
See Notes to Financial Statements. |
17
Statement of Assets and Liabilities |
JANUARY 31, 2010 (UNAUDITED) | |||
Very Conservative | Conservative | Moderate | |
Assets | |||
Investment securities in affiliates, at value (cost of | |||
$130,905,269, $292,036,950 and $630,630,151, respectively) | $138,795,288 | $295,060,850 | $606,936,588 |
Receivable for capital shares sold | 56,191 | 170,044 | 231,642 |
Distributions receivable from affiliates | 124,396 | 247,928 | 425,633 |
138,975,875 | 295,478,822 | 607,593,863 | |
Liabilities | |||
Payable for investments purchased | 23,303 | 175,224 | 406,890 |
Payable for capital shares redeemed | 157,276 | 214,107 | 250,033 |
180,579 | 389,331 | 656,923 | |
Net Assets | $138,795,296 | $295,089,491 | $606,936,940 |
Investor Class Capital Shares, $0.01 Par Value | |||
Outstanding | 13,650,030 | 29,188,043 | 59,470,137 |
Net Asset Value Per Share | $10.17 | $10.11 | $10.21 |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $139,677,659 | $317,688,392 | $693,169,359 |
Undistributed net investment income | 120,973 | 276,909 | 470,770 |
Accumulated net realized loss on investment transactions | (8,893,355) | (25,899,710) | (63,009,626) |
Net unrealized appreciation (depreciation) on investments | 7,890,019 | 3,023,900 | (23,693,563) |
$138,795,296 | $295,089,491 | $606,936,940 | |
See Notes to Financial Statements. |
18
JANUARY 31, 2010 (UNAUDITED) | ||
Aggressive | Very Aggressive | |
Assets | ||
Investment securities in affiliates, at value (cost of | ||
$424,814,334 and $174,378,081, respectively) | $396,950,074 | $158,423,504 |
Receivable for investments sold | — | 47,459 |
Receivable for capital shares sold | 343,507 | 84,467 |
Distributions receivable from affiliates | 242,894 | 17,825 |
397,536,475 | 158,573,255 | |
Liabilities | ||
Payable for investments purchased | 151,542 | — |
Payable for capital shares redeemed | 425,753 | 149,741 |
577,295 | 149,741 | |
Net Assets | $396,959,180 | $158,423,514 |
Investor Class Capital Shares, $0.01 Par Value | ||
Outstanding | 38,880,463 | 15,825,439 |
Net Asset Value Per Share | $10.21 | $10.01 |
Net Assets Consist of: | ||
Capital (par value and paid-in surplus) | $463,985,299 | $195,333,095 |
Undistributed net investment income | 265,826 | 18,771 |
Accumulated net realized loss on investment transactions | (39,427,685) | (20,973,775) |
Net unrealized depreciation on investments | (27,864,260) | (15,954,577) |
$396,959,180 | $158,423,514 | |
See Notes to Financial Statements. |
19
Statement of Operations |
FOR THE SIX MONTHS ENDED JANUARY 31, 2010 (UNAUDITED) | |||
Very Conservative | Conservative | Moderate | |
Investment Income (Loss) | |||
Income: | |||
Income distributions from underlying funds — affiliates | $1,906,863 | $ 3,954,476 | $ 6,495,584 |
Expenses: | |||
Directors’ fees and expenses | 2,423 | 5,123 | 10,881 |
Net investment income (loss) | 1,904,440 | 3,949,353 | 6,484,703 |
Net Realized and Unrealized Gain (Loss) on Affiliates | |||
Net realized gain (loss) on: | |||
Sale of investments in underlying funds | (1,337,703) | (3,494,042) | (7,429,236) |
Change in net unrealized appreciation (depreciation) | |||
on investments in underlying funds | 4,794,334 | 14,355,691 | 38,344,128 |
Net realized and unrealized gain (loss) on affiliates | 3,456,631 | 10,861,649 | 30,914,892 |
Net Increase (Decrease) in Net Assets | |||
Resulting from Operations | $5,361,071 | $14,811,002 | $37,399,595 |
See Notes to Financial Statements. |
20
FOR THE SIX MONTHS ENDED JANUARY 31, 2010 (UNAUDITED) | ||
Aggressive | Very Aggressive | |
Investment Income (Loss) | ||
Income: | ||
Income distributions from underlying funds — affiliates | $ 3,403,759 | $ 862,135 |
Expenses: | ||
Directors’ fees and expenses | 7,111 | 2,914 |
Net investment income (loss) | 3,396,648 | 859,221 |
Net Realized and Unrealized Gain (Loss) on Affiliates | ||
Net realized gain (loss) on: | ||
Sale of investments in underlying funds | (4,196,585) | (2,446,806) |
Change in net unrealized appreciation (depreciation) | ||
on investments in underlying funds | 27,848,987 | 13,011,176 |
Net realized and unrealized gain (loss) on affiliates | 23,652,402 | 10,564,370 |
Net Increase (Decrease) in Net Assets | ||
Resulting from Operations | $27,049,050 | $11,423,591 |
See Notes to Financial Statements. |
21
Statement of Changes in Net Assets |
SIX MONTHS ENDED JANUARY 31, 2010 (UNAUDITED) AND YEAR ENDED JULY 31, 2009 | ||||
Very Conservative | Conservative | |||
Increase (Decrease) in Net Assets | 2010 | 2009 | 2010 | 2009 |
Operations | ||||
Net investment income (loss) | $ 1,904,440 | $ 2,962,020 | $ 3,949,353 | $ 7,473,349 |
Net realized gain (loss) | (1,337,703) | (6,864,019) | (3,494,042) | (20,479,852) |
Change in net unrealized | ||||
appreciation (depreciation) | 4,794,334 | 4,009,013 | 14,355,691 | (6,276,066) |
Net increase (decrease) in net assets | ||||
resulting from operations | 5,361,071 | 107,014 | 14,811,002 | (19,282,569) |
Distributions to Shareholders | ||||
From net investment income | (1,922,010) | (3,036,159) | (3,949,842) | (7,787,898) |
From net realized gains | — | (540,084) | — | (5,048,736) |
Decrease in net assets from distributions | (1,922,010) | (3,576,243) | (3,949,842) | (12,836,634) |
Capital Share Transactions | ||||
Proceeds from shares sold | 48,719,708 | 83,855,930 | 54,437,656 | 71,600,317 |
Proceeds from reinvestment of distributions | 1,873,549 | 3,477,111 | 3,852,299 | 12,604,341 |
Payments for shares redeemed | (29,935,979) | (53,766,219) | (26,465,488) | (82,757,201) |
Net increase (decrease) in net assets | ||||
from capital share transactions | 20,657,278 | 33,566,822 | 31,824,467 | 1,447,457 |
Net increase (decrease) in net assets | 24,096,339 | 30,097,593 | 42,685,627 | (30,671,746) |
Net Assets | ||||
Beginning of period | 114,698,957 | 84,601,364 | 252,403,864 | 283,075,610 |
End of period | $138,795,296 | $114,698,957 | $295,089,491 | $252,403,864 |
Undistributed net investment income | $120,973 | $138,543 | $276,909 | $277,398 |
Transactions in Shares of the Funds | ||||
Sold | 4,787,066 | 8,786,463 | 5,363,134 | 7,629,234 |
Issued in reinvestment of distributions | 183,479 | 363,375 | 376,811 | 1,364,932 |
Redeemed | (2,934,120) | (5,700,965) | (2,606,775) | (8,928,048) |
Net increase (decrease) in shares | ||||
of the funds | 2,036,425 | 3,448,873 | 3,133,170 | 66,118 |
See Notes to Financial Statements. |
22
SIX MONTHS ENDED JANUARY 31, 2010 (UNAUDITED) AND YEAR ENDED JULY 31, 2009 | ||||
Moderate | Aggressive | |||
Increase (Decrease) in Net Assets | 2010 | 2009 | 2010 | 2009 |
Operations | ||||
Net investment income (loss) | $ 6,484,703 | $ 13,376,941 | $ 3,396,648 | $ 6,818,656 |
Net realized gain (loss) | (7,429,236) | (51,077,345) | (4,196,585) | (31,944,153) |
Change in net unrealized | ||||
appreciation (depreciation) | 38,344,128 | (45,261,904) | 27,848,987 | (50,610,667) |
Net increase (decrease) in net assets | ||||
resulting from operations | 37,399,595 | (82,962,308) | 27,049,050 | (75,736,164) |
Distributions to Shareholders | ||||
From net investment income | (6,497,432) | (13,912,448) | (5,719,372) | (7,877,338) |
From net realized gains | — | (19,257,364) | — | (15,603,260) |
Decrease in net assets from distributions | (6,497,432) | (33,169,812) | (5,719,372) | (23,480,598) |
Capital Share Transactions | ||||
Proceeds from shares sold | 72,808,939 | 106,420,172 | 49,318,789 | 74,594,664 |
Proceeds from reinvestment of distributions | 6,343,581 | 32,565,961 | 5,656,734 | 23,214,995 |
Payments for shares redeemed | (45,300,104) | (132,504,961) | (30,434,867) | (73,590,633) |
Net increase (decrease) in net assets | ||||
from capital share transactions | 33,852,416 | 6,481,172 | 24,540,656 | 24,219,026 |
Net increase (decrease) in net assets | 64,754,579 | (109,650,948) | 45,870,334 | (74,997,736) |
Net Assets | ||||
Beginning of period | 542,182,361 | 651,833,309 | 351,088,846 | 426,086,582 |
End of period | $606,936,940 | $542,182,361 | $396,959,180 | $351,088,846 |
Undistributed net investment income | $470,770 | $483,499 | $265,840 | $2,588,550 |
Transactions in Shares of the Funds | ||||
Sold | 7,089,551 | 11,410,931 | 4,781,139 | 8,103,219 |
Issued in reinvestment of distributions | 609,026 | 3,652,095 | 531,149 | 2,770,280 |
Redeemed | (4,411,645) | (14,468,114) | (2,937,175) | (8,142,991) |
Net increase (decrease) in shares | ||||
of the funds | 3,286,932 | 594,912 | 2,375,113 | 2,730,508 |
See Notes to Financial Statements. |
23
SIX MONTHS ENDED JANUARY 31, 2010 (UNAUDITED) AND YEAR ENDED JULY 31, 2009 | ||
Very Aggressive | ||
Increase (Decrease) in Net Assets | 2010 | 2009 |
Operations | ||
Net investment income (loss) | $ 859,221 | $ 1,946,502 |
Net realized gain (loss) | (2,446,806) | (16,311,084) |
Change in net unrealized appreciation (depreciation) | 13,011,176 | (25,530,622) |
Net increase (decrease) in net assets resulting from operations | 11,423,591 | (39,895,204) |
Distributions to Shareholders | ||
From net investment income | (1,466,730) | (1,902,034) |
From net realized gains | — | (7,869,388) |
Decrease in net assets from distributions | (1,466,730) | (9,771,422) |
Capital Share Transactions | ||
Proceeds from shares sold | 15,867,832 | 38,191,366 |
Proceeds from reinvestment of distributions | 1,429,864 | 9,521,101 |
Payments for shares redeemed | (14,926,753) | (33,408,768) |
Net increase (decrease) in net assets from capital share transactions | 2,370,943 | 14,303,699 |
Net increase (decrease) in net assets | 12,327,804 | (35,362,927) |
Net Assets | ||
Beginning of period | 146,095,710 | 181,458,637 |
End of period | $158,423,514 | $146,095,710 |
Undistributed net investment income | $18,771 | $626,280 |
Transactions in Shares of the Fund | ||
Sold | 1,562,840 | 4,345,372 |
Issued in reinvestment of distributions | 135,404 | 1,172,550 |
Redeemed | (1,474,170) | (3,754,950) |
Net increase (decrease) in shares of the fund | 224,074 | 1,762,972 |
See Notes to Financial Statements. |
24
Notes to Financial Statements |
JANUARY 31, 2010 (UNAUDITED)
1. Organization and Summary of Significant Accounting Policies
Organization — American Century Asset Allocation Portfolios, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act), as amended, as an open-end management investment company. One Choice Portfolio: Very Conservative (Very Conservative), One Choice Portfolio: Conservative (Conservative), One Choice Portfolio: Moderate (Moderate), One Choice Portfolio: Aggressive (Aggressive), and One Choice Portfolio: Very Aggressive (Very Aggressive) (collectively, the funds) are five funds in a series issued by the corporation. The funds operate as “fund of funds,” meaning that substantially all of the funds’ assets will be invested in other funds in the American Century Investments family of funds (the underlying funds). The funds are diversified under the 1940 Act. Additionally, the under lying funds are generally diversified and so indirectly provide broad exposure to a large number of securities. The funds’ investment objectives are to seek the highest total return consistent with their respective asset mix. The funds pursue their objectives by investing in underlying funds that represent a variety of asset classes and investment styles. Generally, more conservative funds emphasize investments in bonds and cash equivalents while more aggressive funds emphasize investments in stocks. The corporation is authorized to issue 3,000,000,000 shares. The following is a summary of the funds’ significant accounting policies.
Underlying Funds — Each fund’s assets are allocated among underlying funds that represent major asset classes, including equity securities (stocks), fixed-income securities (bonds) and cash-equivalent instruments (money markets). A brief description of each of the underlying funds follows.
Domestic Equity Funds
Equity Growth Fund seeks long-term capital growth. It uses a quantitative investment strategy to construct an optimized portfolio drawn primarily from large publicly traded U.S. companies without regard to dividend yield.
Growth Fund seeks long-term capital growth. It uses a growth investment strategy and generally invests in larger U.S. companies.
Large Company Value Fund seeks long-term capital growth with income as a secondary objective. It uses a value investment strategy and invests primarily in larger U.S. companies.
Real Estate Fund seeks high total investment return through a combination of capital appreciation and current income. It invests primarily in equity securities issued by real estate investment trusts and companies engaged in the real estate industry.
Small Company Fund seeks long-term capital growth. It uses a quantitative investment strategy and invests primarily in smaller U.S. companies.
Value Fund seeks long-term capital growth with income as a secondary objective. It uses a value investment strategy and invests primarily in U.S. companies of all sizes.
Vista Fund seeks long-term capital growth. It uses a growth investment strategy and generally invests in medium-sized and smaller U.S. companies.
International Equity Funds
Emerging Markets Fund seeks capital growth. It uses a growth investment strategy and invests primarily in securities of companies located in emerging market countries.
International Growth Fund seeks capital growth. It uses a growth investment strategy and invests primarily in securities of companies located in developed countries other than the United States.
25
Domestic Fixed Income Funds
Diversified Bond Fund seeks a high level of income by investing primarily in high- and medium-grade, non-money market debt securities. These securities, which may be payable in U.S. or foreign currencies, may include corporate bonds and notes, government securities and securities backed by mortgages or other assets.
High-Yield Fund seeks high current income by investing in a diversified portfolio of high-yield corporate bonds and other debt securities. As a secondary objective, the fund seeks capital appreciation, but only when consistent with its primary objective of maximizing current income.
Inflation-Adjusted Bond Fund seeks to provide total return and inflation protection consistent with investment in inflation-indexed securities.
International Fixed Income Funds
International Bond Fund seeks high total return by investing in high-quality, non-dollar-denominated government and corporate debt securities issued outside the United States.
Money Market Funds
Prime Money Market Fund seeks to earn the highest level of current income while preserving the value of shareholder investments by investing in high-quality, very short-term debt securities issued by corporations, banks and governments.
Security Valuations — Investments in the underlying funds are valued at their reported net asset value. The underlying funds have specific valuation policies. If an event occurs after the value of a security was established but before the net asset value per share of an underlying fund was determined that was likely to materially change the net asset value of the underlying fund, that security would be valued as determined in accordance with procedures adopted by the Board of Directors/Trustees. If the underlying fund determines that the market price of a portfolio security is not readily available, or that the valuation methods mentioned above do not reflect the security’s fair value, such security is valued as determined by the Board of Directors/Trustees or its designee, in accordance with procedures adopted by th e Board of Directors/Trustees, if such determination would materially impact an underlying fund’s net asset value. Certain other circumstances may cause the underlying fund to use alternative procedures to value a security such as: a security has been declared in default; trading in a security has been halted during the trading day; or there is a foreign market holiday and no trading will commence.
Security Transactions — For financial reporting purposes, security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Income and capital gain distributions, if any, from the underlying funds are recorded as of the ex-dividend date. Long-term capital gain distributions, if any, from the underlying funds are a component of net realized gain (loss).
Income Tax Status — It is each fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. The funds are no longer subject to examination by tax authorities for years prior to 2006. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Accordingly, no provision has been made for federal or state income taxes. Interest and penalties associated with any federal or state income tax obligations, if any, are recorded as interest expens e.
26
Distributions to Shareholders — Distributions to shareholders are recorded on the ex-dividend date. Distributions from net investment income, if any, are generally declared and paid quarterly for Very Conservative, Conservative, and Moderate. Distributions from net investment income, if any, are generally declared and paid annually for Aggressive and Very Aggressive. Distributions from net realized gains, if any, are generally declared and paid annually for all funds.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business, the funds enter into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Use of Estimates — The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates.
Subsequent Events — Management has evaluated events or transactions that may have occurred since January 31, 2010, that would merit recognition or disclosure in the financial statements. This evaluation was completed through March 26, 2010, the date the financial statements were issued.
2. Fees and Transactions with Related Parties
Administrative Fees — The corporation’s investment advisor, American Century Investment Management, Inc. (ACIM), does not receive an administrative fee for services provided to the funds. Each fund will indirectly realize its pro rata share of the fees and expenses of the underlying funds in which it invests. These fees and expenses are already reflected in the valuation of the underlying funds.
Related Parties — Certain officers and directors of the corporation are also officers and/ or directors of American Century Companies, Inc. (ACC), the parent of the corporation’s investment advisor, ACIM, the distributor of the corporation, American Century Investment Services, Inc., and the corporation’s transfer agent, American Century Services, LLC. The directors of the corporation are also directors of some underlying funds and therefore those underlying funds may be deemed to be under common control with the corporation. The officers of the corporation are also officers of all the underlying funds. ACIM or American Century Global Investment Management, Inc., a wholly-owned subsidiary of ACIM, serves as the investment advisor for the underlying funds.
The funds have a Mutual Funds Services Agreement with J.P. Morgan Investor Services Co. (JPMIS). JPMIS is a wholly owned subsidiary of JPMorgan Chase & Co. (JPM). JPM is an equity investor in ACC.
3. Investment Transactions
Investment transactions for the six months ended January 31, 2010, were as follows:
Very Conservative | Conservative | Moderate | Aggressive | Very Aggressive | |
Purchases | $33,695,637 | $40,649,746 | $51,933,828 | $33,216,678 | $8,328,755 |
Sales | $13,062,938 | $8,868,671 | $18,121,584 | $11,022,629 | $6,566,328 |
27
4. Affiliated Company Transactions
Investments are funds within the American Century Investments family of funds, of which certain funds may be deemed to be under common control because of the same board of directors. A summary of transactions for each underlying fund for the six months ended January 31, 2010 follows:
July 31, 2009 | January 31, 2010 | |||||||
Fund/ | Share | Purchase | Sales | Realized | Distributions | Share | Market | |
Underlying Fund | Balance | Cost | Cost | Gain (Loss) | Received(1) | Balance | Value | |
One Choice Portfolio: Very Conservative | ||||||||
Diversified Bond Fund | ||||||||
Investor Class | 3,562,353 | $ 11,693,828 | $ 3,715,159 | $ (15,848) | $ 903,271 | 4,315,550 | $ 46,090,074 | |
Inflation-Adjusted Bond | ||||||||
Fund Investor Class | 1,018,564 | 3,033,976 | 957,500 | (5,790) | 214,605 | 1,201,097 | 13,992,780 | |
Equity Growth Fund | ||||||||
Investor Class | 329,231 | 1,271,316 | 1,263,951 | (297,326) | 40,237 | 347,300 | 6,157,629 | |
Growth Fund | ||||||||
Investor Class | 187,385 | 885,746 | 798,492 | (35,888) | 11,575 | 194,301 | 4,084,207 | |
Large Company Value | ||||||||
Fund Investor Class | 1,967,444 | 2,138,536 | 1,994,201 | (509,590) | 85,847 | 2,103,803 | 10,308,635 | |
Real Estate Fund | ||||||||
Investor Class | 213,289 | 653,845 | 782,062 | 9,056 | 25,209 | 204,253 | 2,759,458 | |
Small Company Fund | ||||||||
Investor Class | 224,824 | 256,339 | 326,754 | (87,502) | 4,033 | 228,991 | 1,369,366 | |
Value Fund | ||||||||
Investor Class | 1,233,424 | 1,327,683 | 1,282,176 | (266,326) | 70,228 | 1,299,659 | 6,524,288 | |
Vista Fund | ||||||||
Investor Class(2) | 145,440 | 432,888 | 365,567 | (111,334) | — | 160,002 | 2,009,625 | |
Prime Money Market | ||||||||
Fund Investor Class | 25,423,737 | 8,560,873 | 2,273,321 | — | 5,908 | 31,711,289 | 31,711,289 | |
International Bond Fund | ||||||||
Investor Class | 779,169 | 3,440,607 | 641,458 | (17,155) | 545,950 | 968,254 | 13,787,937 | |
$33,695,637 | $14,400,641 | $(1,337,703) | $1,906,863 | $138,795,288 | ||||
(1) | Distributions received includes distributions from net investment income and from capital gains from the underlying funds. | |||||||
(2) | Non-income producing. |
28
July 31, 2009 | January 31, 2010 | |||||||
Fund/ | Share | Purchase | Sales | Realized | Distributions | Share | Market | |
Underlying Fund | Balance | Cost | Cost | Gain (Loss) | Received(1) | Balance | Value | |
One Choice Portfolio: Conservative | ||||||||
Diversified Bond Fund | ||||||||
Investor Class | 7,262,746 | $16,746,253 | $ 757,620 | $ (2,354) | $1,773,729 | 8,767,192 | $ 93,633,611 | |
Inflation-Adjusted Bond | ||||||||
Fund Investor Class | 1,989,202 | 3,874,530 | 169,199 | (17) | 396,877 | 2,312,377 | 26,939,192 | |
Equity Growth Fund | ||||||||
Investor Class | 1,349,108 | 2,006,856 | 2,095,694 | (680,691) | 157,594 | 1,382,455 | 24,510,927 | |
Growth Fund | ||||||||
Investor Class | 711,829 | 1,225,951 | 989,089 | (95,206) | 41,334 | 727,971 | 15,301,951 | |
Large Company Value | ||||||||
Fund Investor Class | 5,971,111 | 2,704,238 | 2,358,086 | (855,310) | 252,327 | 6,214,253 | 30,449,840 | |
Real Estate Fund | ||||||||
Investor Class | 461,178 | 466,833 | 1,198,635 | (474,357) | 52,681 | 441,030 | 5,958,315 | |
Small Company Fund | ||||||||
Investor Class | 731,733 | 350,299 | 611,778 | (264,930) | 12,902 | 732,571 | 4,380,775 | |
Value Fund | ||||||||
Investor Class | 3,659,900 | 1,518,629 | 1,410,928 | (515,269) | 200,115 | 3,785,671 | 19,004,068 | |
Vista Fund | ||||||||
Investor Class(2) | 840,146 | 1,116,009 | 661,597 | (213,231) | — | 892,797 | 11,213,530 | |
International Bond Fund | ||||||||
Investor Class | 1,352,745 | 4,475,490 | 151,694 | (1,288) | 917,306 | 1,645,115 | 23,426,437 | |
Prime Money Market | ||||||||
Fund Investor Class | 18,792,481 | 4,356,274 | 145,651 | — | 4,271 | 23,003,104 | 23,003,104 | |
International Growth | ||||||||
Fund Investor Class | 1,803,403 | 1,808,384 | 1,812,742 | (391,389) | 145,340 | 1,843,754 | 17,239,100 | |
$40,649,746 | $12,362,713 | $(3,494,042) | $3,954,476 | $295,060,850 | ||||
(1) | Distributions received includes distributions from net investment income and from capital gains from the underlying funds. | |||||||
(2) | Non-income producing. |
29
July 31, 2009 | January 31, 2010 | |||||||
Fund/ | Share | Purchase | Sales | Realized | Distributions | Share | Market | |
Underlying Fund | Balance | Cost | Cost | Gain (Loss) | Received(1) | Balance | Value | |
One Choice Portfolio: Moderate | ||||||||
Equity Growth Fund | ||||||||
Investor Class | 5,212,157 | $ 4,163,533 | $ 5,133,085 | $(1,739,768) | $ 604,294 | 5,253,195 | $ 93,139,147 | |
Growth Fund | ||||||||
Investor Class | 2,441,838 | 2,282,944 | 2,080,042 | (214,664) | 139,687 | 2,461,306 | 51,736,652 | |
Large Company Value | ||||||||
Fund Investor Class | 10,842,635 | 2,417,707 | 2,400,861 | (887,869) | 455,958 | 11,021,799 | 54,006,815 | |
Real Estate Fund | ||||||||
Investor Class | 976,153 | 536,862 | 2,501,765 | (1,251,874) | 110,858 | 920,096 | 12,430,497 | |
Small Company Fund | ||||||||
Investor Class | 2,066,948 | 537,113 | 1,282,314 | (571,311) | 36,686 | 2,036,502 | 12,178,282 | |
Value Fund | ||||||||
Investor Class | 5,964,772 | 1,343,100 | 1,283,777 | (490,616) | 323,642 | 6,073,923 | 30,491,094 | |
Vista Fund | ||||||||
Investor Class(2) | 3,113,198 | 2,201,472 | 1,073,761 | (378,823) | — | 3,229,977 | 40,568,511 | |
Diversified Bond Fund | ||||||||
Investor Class | 10,433,340 | 21,338,255 | 1,279,645 | (6,407) | 2,518,602 | 12,321,191 | 131,590,320 | |
High-Yield Fund | ||||||||
Investor Class | 1,999,943 | 912,368 | 63,329 | (9,064) | 516,642 | 2,153,933 | 12,535,890 | |
Inflation-Adjusted Bond | ||||||||
Fund Investor Class | 2,811,911 | 4,326,259 | 162,589 | 127 | 551,867 | 3,175,476 | 36,994,295 | |
Emerging Markets Fund | ||||||||
Investor Class | 3,599,521 | 1,074,361 | 3,267,892 | (741,831) | — | 3,393,582 | 23,924,753 | |
International Growth | ||||||||
Fund Investor Class | 6,367,747 | 3,451,905 | 4,803,938 | (1,136,285) | 505,189 | 6,340,718 | 59,285,713 | |
Prime Money Market | ||||||||
Fund Investor Class | 25,707,084 | 4,950,258 | 135,524 | — | 5,806 | 30,521,818 | 30,521,818 | |
International Bond Fund | ||||||||
Investor Class | 1,075,634 | 2,397,691 | 82,298 | (851) | 726,353 | 1,231,236 | 17,532,801 | |
$51,933,828 | $25,550,820 | $(7,429,236) | $6,495,584 | $606,936,588 | ||||
(1) | Distributions received includes distributions from net investment income and from capital gains from the underlying funds. | |||||||
(2) | Non-income producing. |
30
July 31, 2009 | January 31, 2010 | |||||||
Fund/ | Share | Purchase | Sales | Realized | Distributions | Share | Market | |
Underlying Fund | Balance | Cost | Cost | Gain (Loss) | Received(1) | Balance | Value | |
One Choice Portfolio: Aggressive | ||||||||
Equity Growth Fund | ||||||||
Investor Class | 3,018,599 | $ 2,943,408 | $ 1,976,585 | $ (687,275) | $ 356,730 | 3,111,837 | $ 55,172,870 | |
Growth Fund | ||||||||
Investor Class | 2,762,658 | 2,894,485 | 2,320,332 | (206,282) | 158,501 | 2,803,561 | 58,930,852 | |
Large Company Value | ||||||||
Fund Investor Class | 6,180,538 | 1,740,563 | 764,324 | (284,345) | 265,207 | 6,437,756 | 31,545,004 | |
Real Estate Fund | ||||||||
Investor Class | 625,780 | 359,316 | 1,628,293 | (859,379) | 72,146 | 594,565 | 8,032,573 | |
Small Company Fund | ||||||||
Investor Class | 1,490,657 | 404,500 | 745,335 | (342,867) | 27,150 | 1,491,445 | 8,918,841 | |
Value Fund | ||||||||
Investor Class | 3,251,074 | 764,289 | 369,564 | (142,468) | 179,783 | 3,361,498 | 16,874,720 | |
Vista Fund | ||||||||
Investor Class(2) | 3,850,286 | 3,803,452 | 606,669 | (219,120) | — | 4,116,408 | 51,702,085 | |
Diversified Bond Fund | ||||||||
Investor Class | 4,143,713 | 10,793,068 | 627,354 | (1,403) | 1,019,379 | 5,100,825 | 54,476,811 | |
High-Yield Fund | ||||||||
Investor Class | 2,565,249 | 1,609,461 | 131,941 | (17,100) | 673,454 | 2,833,277 | 16,489,672 | |
Inflation-Adjusted Bond | ||||||||
Fund Investor Class | 1,202,474 | 2,874,244 | 114,714 | 170 | 239,501 | 1,443,542 | 16,817,265 | |
Emerging Markets Fund | ||||||||
Investor Class | 3,750,038 | 1,168,906 | 2,782,616 | (664,200) | — | 3,617,583 | 25,503,960 | |
International Growth | ||||||||
Fund Investor Class | 5,104,283 | 3,050,711 | 3,122,779 | (772,316) | 411,155 | 5,177,110 | 48,405,979 | |
Prime Money Market | ||||||||
Fund Investor Class | 3,297,875 | 810,275 | 28,708 | — | 753 | 4,079,442 | 4,079,442 | |
$33,216,678 | $15,219,214 | $(4,196,585) | $3,403,759 | $396,950,074 | ||||
(1) | Distributions received includes distributions from net investment income and from capital gains from the underlying funds. | |||||||
(2) | Non-income producing. |
31
July 31, 2009 | January 31, 2010 | |||||||
Fund/ | Share | Purchase | Sales | Realized | Distributions | Share | Market | |
Underlying Fund | Balance | Cost | Cost | Gain (Loss) | Received(1) | Balance | Value | |
One Choice Portfolio: Very Aggressive | ||||||||
Equity Growth Fund | ||||||||
Investor Class | 1,535,160 | $1,024,167 | $1,109,088 | $ (388,076) | $178,741 | 1,551,539 | $ 27,508,786 | |
Growth Fund | ||||||||
Investor Class | 1,386,953 | 1,048,092 | 1,400,221 | (123,145) | 78,476 | 1,376,700 | 28,938,234 | |
Large Company Value | ||||||||
Fund Investor Class | 3,189,968 | 720,119 | 600,916 | (229,163) | 134,985 | 3,260,053 | 15,974,260 | |
Real Estate Fund | ||||||||
Investor Class | 258,650 | 92,831 | 664,509 | (324,265) | 29,271 | 239,699 | 3,238,334 | |
Small Company Fund | ||||||||
Investor Class | 683,588 | 116,181 | 353,843 | (164,437) | 12,356 | 670,859 | 4,011,737 | |
Value Fund | ||||||||
Investor Class | 1,736,774 | 325,369 | 332,845 | (128,338) | 94,605 | 1,761,524 | 8,842,850 | |
Vista Fund | ||||||||
Investor Class(2) | 1,943,972 | 1,852,481 | 978,646 | (293,645) | — | 2,033,556 | 25,541,463 | |
Emerging Markets Fund | ||||||||
Investor Class | 1,785,207 | 348,728 | 1,572,430 | (350,737) | — | 1,662,595 | 11,721,295 | |
International Growth | ||||||||
Fund Investor Class | 2,611,903 | 1,254,372 | 1,667,283 | (445,526) | 206,471 | 2,613,364 | 24,434,953 | |
Diversified Bond Fund | ||||||||
Investor Class | 527,307 | 1,259,085 | 296,161 | 526 | 126,923 | 618,044 | 6,600,710 | |
Prime Money Market | ||||||||
Fund Investor Class | 1,360,744 | 287,330 | 37,192 | — | 307 | 1,610,882 | 1,610,882 | |
$8,328,755 | $9,013,134 | $(2,446,806) | $862,135 | $158,423,504 | ||||
(1) | Distributions received includes distributions from net investment income and from capital gains from the underlying funds. | |||||||
(2) | Non-income producing. |
5. Investments in Underlying Funds
The funds do not invest in the underlying funds for the purpose of exercising management or control; however, investments by the funds within their investment strategies may represent a significant portion of the underlying funds’ net assets.
6. Fair Value Measurements
The funds’ securities valuation process is based on several considerations and may use multiple inputs to determine the fair value of the positions held by the funds. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels as follows:
• Level 1 valuation inputs consist of actual quoted prices in an active market for identical securities;
• Level 2 valuation inputs consist of significant direct or indirect observable market data (including quoted prices for similar securities, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.); or
• Level 3 valuation inputs consist of significant unobservable inputs (including a fund’s own assumptions).
32
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not an indication of the risks associated with investing in these securities or other financial instruments.
As of January 31, 2010, the valuation inputs used to determine the fair value of the funds’ securities were classified as Level 1.
7. Risk Factors
Some of the underlying funds invest in foreign securities, which are generally riskier than U.S. securities. As a result, the funds are subject to foreign risk, meaning that political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters occurring in a country where the funds invest could cause the funds’ investments in that country to experience gains or losses. Investing in emerging markets may accentuate these risks.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of January 31, 2010, the components of investments for federal income tax purposes were as follows:
Very Conservative | Conservative | Moderate | Aggressive | Very Aggressive | |
Federal tax cost | |||||
of investments | $139,608,338 | $314,187,506 | $678,797,908 | $456,474,970 | $190,014,658 |
Gross tax appreciation | |||||
of investments | — | — | $ 5,212,975 | $ 3,068,424 | $ 978,036 |
Gross tax depreciation | |||||
of investments | $(813,050) | $(19,126,656) | (77,074,295) | (62,593,320) | (32,569,190) |
Net tax appreciation | |||||
(depreciation) | |||||
of investments | $(813,050) | $(19,126,656) | $(71,861,320) | $(59,524,896) | $(31,591,154) |
The difference between book-basis and tax-basis cost and unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
Following are the capital loss carryovers and capital loss deferral amounts as of July 31, 2009:
Very Conservative | Conservative | Moderate | Aggressive | Very Aggressive | |
Accumulated | |||||
capital losses | — | $(685,394) | $(3,239,053) | $(2,141,306) | $(2,321,712) |
Capital loss deferrals | $(73,976) | $(2,134,280) | $(7,701,510) | $(4,291,043) | $(2,414,255) |
The accumulated capital losses listed above represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations. The capital loss carryovers expire in 2017.
The capital loss deferrals listed above represent net capital losses incurred in the nine-month period ended July 31, 2009. The funds have elected to treat such losses as having been incurred in the following fiscal year for federal income tax purposes.
33
9. Corporate Event
As part of a long-standing estate and business succession plan established by ACC Co-Chairman James E. Stowers, Jr., the founder of American Century Investments, ACC Co-Chairman Richard W. Brown has succeeded Mr. Stowers as trustee of a trust that holds a greater-than-25% voting interest in ACC. Under the 1940 Act, this is presumed to represent control of ACC even though it is less than a majority interest. Because ACC is the parent corporation of each fund’s investment advisor, the change of trustee is considered a technical assignment of each fund’s investment advisory agreement. Under the 1940 Act, an assignment requires the automatic termination of such agreements, making the approval of new agreements necessary.
On February 18, 2010, the Board of Directors approved interim investment advisory agreements under which each fund will be managed until new agreements are approved by fund shareholders. The interim agreements are substantially identical to the terminated agreements (with the exception of different effective and termination dates) and will not result in changes in the management of American Century Investments, the funds, their investment objectives, fees or services provided. New agreements, also expected to be substantially identical to the terminated agreements, will be submitted for shareholder approval.
34
Financial Highlights |
One Choice Portfolio: Very Conservative | |||||||
Investor Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.88 | $10.36 | $10.55 | $10.23 | $10.27 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.15 | 0.30 | 0.43 | 0.40 | 0.37 | 0.25 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.29 | (0.40) | (0.12) | 0.33 | (0.04) | 0.29 | |
Total From | |||||||
Investment Operations | 0.44 | (0.10) | 0.31 | 0.73 | 0.33 | 0.54 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.15) | (0.32) | (0.46) | (0.39) | (0.36) | (0.27) | |
From Net Realized Gains | — | (0.06) | (0.04) | (0.02) | (0.01) | — | |
Total Distributions | (0.15) | (0.38) | (0.50) | (0.41) | (0.37) | (0.27) | |
Net Asset Value, | |||||||
End of Period | $10.17 | $9.88 | $10.36 | $10.55 | $10.23 | $10.27 | |
Total Return(4) | 4.40% | (0.87)% | 2.91% | 7.23% | 3.27% | 5.43% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to Average | |||||||
Net Assets(5) | 0.00%(6) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to Average | |||||||
Net Assets | 2.84%(6) | 3.13% | 4.06% | 3.83% | 3.67% | 3.00%(6) | |
Portfolio Turnover Rate | 10% | 42% | 17% | 17% | 34% | 38% | |
Net Assets, End of Period | |||||||
(in thousands) | $138,795 | $114,699 | $84,601 | $40,983 | $19,852 | $10,132 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | September 30, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. Other expenses, which include the | ||||||
fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not exceed 0.005%. | |||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
35
One Choice Portfolio: Conservative | |||||||
Investor Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.69 | $10.89 | $11.38 | $10.66 | $10.54 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.14 | 0.29 | 0.44 | 0.35 | 0.34 | 0.22 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.42 | (0.98) | (0.40) | 0.75 | 0.12 | 0.58 | |
Total From | |||||||
Investment Operations | 0.56 | (0.69) | 0.04 | 1.10 | 0.46 | 0.80 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.14) | (0.31) | (0.45) | (0.35) | (0.33) | (0.26) | |
From Net Realized Gains | — | (0.20) | (0.08) | (0.03) | (0.01) | — | |
Total Distributions | (0.14) | (0.51) | (0.53) | (0.38) | (0.34) | (0.26) | |
Net Asset Value, | |||||||
End of Period | $10.11 | $9.69 | $10.89 | $11.38 | $10.66 | $10.54 | |
Total Return(4) | 5.79% | (6.05)% | 0.18% | 10.41% | 4.45% | 8.08% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to Average | |||||||
Net Assets(5) | 0.00%(6) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to Average | |||||||
Net Assets | 2.80%(6) | 3.13% | 3.85% | 3.14% | 3.23% | 2.63%(6) | |
Portfolio Turnover Rate | 3% | 40% | 18% | 7% | 8% | 12% | |
Net Assets, End of Period | |||||||
(in thousands) | $295,089 | $252,404 | $283,076 | $227,830 | $110,384 | $43,183 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | September 30, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. Other expenses, which include the | ||||||
fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not exceed 0.005%. | |||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
36
One Choice Portfolio: Moderate | |||||||
Investor Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.65 | $11.73 | $12.58 | $11.34 | $10.97 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.11 | 0.24 | 0.43 | 0.35 | 0.34 | 0.17 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.56 | (1.70) | (0.70) | 1.29 | 0.38 | 0.99 | |
Total From | |||||||
Investment Operations | 0.67 | (1.46) | (0.27) | 1.64 | 0.72 | 1.16 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.11) | (0.26) | (0.44) | (0.35) | (0.34) | (0.19) | |
From Net Realized Gains | — | (0.36) | (0.14) | (0.05) | (0.01) | — | |
Total Distributions | (0.11) | (0.62) | (0.58) | (0.40) | (0.35) | (0.19) | |
Net Asset Value, | |||||||
End of Period | $10.21 | $9.65 | $11.73 | $12.58 | $11.34 | $10.97 | |
Total Return(4) | 6.94% | (11.94)% | (2.37)% | 14.56% | 6.68% | 11.71% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to Average | |||||||
Net Assets(5) | 0.00%(6) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to Average | |||||||
Net Assets | 2.17(6) | 2.63% | 3.44% | 2.85% | 3.02% | 1.98%(6) | |
Portfolio Turnover Rate | 3% | 32% | 18% | 7% | 7% | 3% | |
Net Assets, End of Period | |||||||
(in thousands) | $606,937 | $542,182 | $651,833 | $586,377 | $253,610 | $97,313 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | September 30, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. Other expenses, which include the | ||||||
fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not exceed 0.005%. | |||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
37
One Choice Portfolio: Aggressive | |||||||
Investor Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.62 | $12.62 | $13.69 | $11.83 | $11.26 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.09 | 0.20 | 0.41 | 0.32 | 0.31 | 0.14 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.65 | (2.49) | (0.90) | 1.87 | 0.56 | 1.22 | |
Total From | |||||||
Investment Operations | 0.74 | (2.29) | (0.49) | 2.19 | 0.87 | 1.36 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.15) | (0.24) | (0.40) | (0.28) | (0.29) | (0.10) | |
From Net Realized Gains | — | (0.47) | (0.18) | (0.05) | (0.01) | — | |
Total Distributions | (0.15) | (0.71) | (0.58) | (0.33) | (0.30) | (0.10) | |
Net Asset Value, | |||||||
End of Period | $10.21 | $9.62 | $12.62 | $13.69 | $11.83 | $11.26 | |
Total Return(4) | 7.63% | (17.28)% | (3.97)% | 18.78% | 7.84% | 13.61% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to Average | |||||||
Net Assets(5) | 0.00%(6) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to Average | |||||||
Net Assets | 1.73%(6) | 2.12% | 3.07% | 2.46% | 2.68% | 1.52%(6) | |
Portfolio Turnover Rate | 3% | 27% | 17% | 7% | 6% | 3% | |
Net Assets, End of Period | |||||||
(in thousands) | $396,959 | $351,089 | $426,087 | $397,022 | $191,350 | $64,623 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | September 30, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. Other expenses, which include the | ||||||
fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not exceed 0.005%. | |||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
38
One Choice Portfolio: Very Aggressive | |||||||
Investor Class | |||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | |||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | ||
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $9.36 | $13.11 | $14.58 | $12.23 | $11.48 | $10.00 | |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.05 | 0.13 | 0.36 | 0.25 | 0.25 | 0.08 | |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.69 | (3.17) | (1.27) | 2.40 | 0.78 | 1.49 | |
Total From | |||||||
Investment Operations | 0.74 | (3.04) | (0.91) | 2.65 | 1.03 | 1.57 | |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.09) | (0.14) | (0.37) | (0.24) | (0.27) | (0.09) | |
From Net Realized Gains | — | (0.57) | (0.19) | (0.06) | (0.01) | — | |
Total Distributions | (0.09) | (0.71) | (0.56) | (0.30) | (0.28) | (0.09) | |
Net Asset Value, | |||||||
End of Period | $10.01 | $9.36 | $13.11 | $14.58 | $12.23 | $11.48 | |
Total Return(4) | 7.89% | (22.35)% | (6.63)% | 21.87% | 9.00% | 15.81% | |
Ratios/Supplemental Data | |||||||
Ratio of Operating | |||||||
Expenses to Average | |||||||
Net Assets(5) | 0.00%(6) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%(6) | |
Ratio of Net Investment | |||||||
Income (Loss) to Average | |||||||
Net Assets | 1.08%(6) | 1.48% | 2.53% | 1.85% | 2.08% | 0.84%(6) | |
Portfolio Turnover Rate | 4% | 23% | 15% | 8% | 9% | 8% | |
Net Assets, End of Period | |||||||
(in thousands) | $158,424 | $146,096 | $181,459 | $168,844 | $77,262 | $25,649 | |
(1) | Six months ended January 31, 2010 (unaudited). | ||||||
(2) | September 30, 2004 (fund inception) through July 31, 2005. | ||||||
(3) | Computed using average shares outstanding throughout the period. | ||||||
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year | ||||||
are not annualized. | |||||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. Other expenses, which include the | ||||||
fees and expenses of the fund’s independent directors and its legal counsel, as well as interest, did not exceed 0.005%. | |||||||
(6) | Annualized. | ||||||
See Notes to Financial Statements. |
39
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs, or 403(b), 457 and qualified plans are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. You have the right to revoke your withholding election at any time and any election you make may remain in effect until revoked by filing a new election.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld. State taxes will be withheld from your distribution in accordance with the respective state rules.
Proxy Voting Guidelines
American Century Investment Management, Inc., the funds’ investment advisor, is responsible for exercising the voting rights associated with the securities purchased and/or held by the funds. A description of the policies and procedures the advisor uses in fulfilling this responsibility is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century Investments’ website at americancentury.com and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the “About Us” page at americancentury.com. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The funds’ Forms N-Q are available on the SEC’s website at sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The funds also make their complete schedule of portfolio holdings for the most recent quarter of their fiscal year available on their website at americancentury.com and, upon request, by calling 1-800-345-2021.
40
Index Definitions |
The following indices are used to illustrate investment market, sector, or style performance or to serve as fund performance comparisons. They are not investment products available for purchase.
The Barclays Capital U.S. Aggregate Bond Index represents securities that are taxable, registered with the Securities and Exchange Commission, and U.S. dollar denominated. The index covers the U.S. investment-grade fixed-rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.
The Citigroup Non-U.S. World Government Bond Index is based on the Citigroup World Bond Index, and excludes issues denominated in U.S. dollars. The index measures the total return of government securities in major sectors of the international bond market.
The Citigroup US Broad Investment-Grade (BIG) Bond Index is a market-capitalization-weighted index that includes fixed-rate Treasury, government-sponsored, mortgage, asset-backed, and investment-grade issues with a maturity of one year or longer.
Morgan Stanley Capital International (MSCI) has developed several indices that measure the performance of foreign stock markets.
The MSCI EAFE (Europe, Australasia, Far East) Index is designed to measure developed market equity performance, excluding the U.S. and Canada.
The MSCI EM (Emerging Markets) Index represents the performance of stocks in global emerging market countries.
The Russell 1000® Index is a market-capitalization weighted, large-cap index created by Frank Russell Company to measure the performance of the 1,000 largest publicly traded U.S. companies, based on total market capitalization.
The Russell 2000® Index is a market-capitalization weighted index created by Frank Russell Company to measure the performance of the 2,000 smallest of the 3,000 largest publicly traded U.S. companies, based on total market capitalization.
The Russell 3000® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.
The Russell Midcap® Index measures the performance of the 800 smallest of the 1,000 largest publicly traded U.S. companies, based on total market capitalization.
41
Notes |
42
Notes |
43
Notes |
44
![](https://capedge.com/proxy/N-CSRS/0001467105-10-000028/cl-san67773x48x1.jpg)
Contact Us | |
americancentury.com | |
Automated Information Line | 1-800-345-8765 |
Investor Services Representative | 1-800-345-2021 or |
816-531-5575 | |
Business, Not-For-Profit, Employer-Sponsored | |
Retirement Plans | 1-800-345-3533 |
Banks and Trust Companies, Broker-Dealers, | |
Financial Professionals, Insurance Companies | 1-800-345-6488 |
Telecommunications Device for the Deaf | 1-800-634-4113 |
American Century Asset Allocation Portfolios, Inc. | |
Investment Advisor: | |
American Century Investment Management, Inc. | |
Kansas City, Missouri |
This report and the statements it contains are submitted for the general
information of our shareholders. The report is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective prospectus.
American Century Investment Services, Inc., Distributor
©2010 American Century Proprietary Holdings, Inc. All rights reserved.
1003
CL-SAN-67773N
ITEM 2. CODE OF ETHICS. | |
Not applicable for semiannual report filings. | |
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. | |
Not applicable for semiannual report filings. | |
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. | |
Not applicable for semiannual report filings. | |
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. | |
Not applicable. | |
ITEM 6. INVESTMENTS. | |
(a) | The schedule of investments is included as part of the report to stockholders filed under Item 1 |
of this Form. | |
(b) | Not applicable. |
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR | |
CLOSED-END MANAGEMENT INVESTMENT COMPANIES. | |
Not applicable. | |
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT | |
INVESTMENT COMPANIES. | |
Not applicable. | |
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT | |
INVESTMENT COMPANY AND AFFILIATED PURCHASERS. | |
Not applicable. | |
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. | |
During the reporting period, there were no material changes to the procedures by which shareholders may | |
recommend nominees to the registrant’s board. |
ITEM 11. CONTROLS AND PROCEDURES. | |||
(a) | The registrant's principal executive officer and principal financial officer have concluded that | ||
the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the | |||
Investment Company Act of 1940) are effective based on their evaluation of these controls and | |||
procedures as of a date within 90 days of the filing date of this report. | |||
(b) | There were no changes in the registrant's internal control over financial reporting (as defined in | ||
Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant's | |||
second fiscal quarter of the period covered by this report that have materially affected, or are | |||
reasonably likely to materially affect, the registrant's internal control over financial reporting. | |||
ITEM 12. EXHIBITS. | |||
(a) | (1) | Not applicable for semiannual report filings. | |
(a) | (2) | Separate certifications by the registrant’s principal executive officer and principal financial | |
officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the | |||
Investment Company Act of 1940, are filed and attached hereto as EX-99.CERT. | |||
(a) | (3) | Not applicable. | |
(b) | A certification by the registrant’s chief executive officer and chief financial officer, pursuant to | ||
Section 906 of the Sarbanes-Oxley Act of 2002, is furnished and attached hereto as EX- | |||
99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | American Century Asset Allocation Portfolios, Inc. | |
By: | /s/ Jonathan S. Thomas | |
Name: | Jonathan S. Thomas | |
Title: | President | |
Date: | March 31, 2010 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Jonathan S. Thomas | |
Name: | Jonathan S. Thomas | |
Title: | President | |
(principal executive officer) | ||
Date: | March 31, 2010 |
By: | /s/ Robert J. Leach | |
Name: | Robert J. Leach | |
Title: | Vice President, Treasurer, and | |
Chief Financial Officer | ||
(principal financial officer) | ||
Date: | March 31, 2010 |