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: | 07-31-2010 | |
ITEM 1. REPORTS TO STOCKHOLDERS. | |
Annual Report | |
July 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 | 8 |
Market Index Total Returns | 9 |
Underlying Fund Allocations. | 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 |
Report of Independent Registered Public Accounting Firm | 40 |
Other Information | |
Proxy Voting Results | 41 |
Management | 42 |
Board Approval of Management Agreements | 46 |
Additional Information | 52 |
Index Definitions | 53 |
Any opinions expressed in this report reflect those of the author 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 securities is provided to American Cent ury 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-CSR/0001467105-10-000080/cl-ann69347x3x1.jpg)
Dear Investor:
To learn more about the capital markets, your investment, and the portfolio management strategies American Century Investments provides, we encourage you to review this shareholder report for the financial reporting period ended July 31, 2010.
On the following pages, you will find investment performance and portfolio information, presented with the expert perspective and commentary of our portfolio management team. This report remains one of our most important vehicles for conveying the information you need about your investment performance, and about the market factors and strategies that affect fund returns. For additional information on the markets, we encourage you to visit the “Insights & News” tab at our Web site, americancentury.com, for updates and further expert commentary.
The top of our Web site’s home page also provides a link to “Our Story,” which, first and foremost, outlines our commitment—since 1958—to helping clients reach their financial goals. We believe strongly that we will only be successful when our clients are successful. That’s who we are.
Another important, unique facet of our story and who we are is “Profits with a Purpose,” which describes our bond with the Stowers Institute for Medical Research (SIMR). SIMR is a world-class biomedical organization—founded by our company founder James E. Stowers, Jr. and his wife Virginia—that is dedicated to researching the causes, treatment, and prevention of gene-based diseases, including cancer. Through American Century Investments’ private ownership structure, more than 40% of our profits support SIMR.
Mr. Stowers’ example of achieving financial success and using that platform to help humanity motivates our entire American Century Investments team. His story inspires us to help each of our clients achieve success. Thank you for sharing your financial journey with us.
Sincerely,
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69347x3x2.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Independent Chairman’s Letter |
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69347x4x1.jpg)
Fellow Shareholders,
The principal event at a recent board meeting was the retirement of Jim Stowers, Jr. from the American Century Mutual Funds Kansas City board. This was one of those times when you felt like you were living a historical moment. Jim—who celebrated his 86th birthday in January—founded what was known as Twentieth Century Mutual Funds over 50 years ago. Through the years, his number one priority has been to “Put Investors First!” The board presented Jim with a resolution acknowledging that, by building a successful investment company, he has impacted the lives of many by helping them on the path to financial success.
We respect Jim’s decision to focus his energy on the Stowers Institute for Medical Research and American Century Companies, Inc. (ACC), the parent company of the funds’ investment advisor. The pioneering medical research that Jim and his wife Virginia have made possible through the Institute should enrich the lives of millions in the future.
Shortly after his retirement from the board, we received word that ACC’s co-chairman Richard W. Brown had succeeded Jim as trustee of a trust that holds a significant interest in ACC stock as a part of Jim’s long-standing estate and business succession plan. While holding less than a majority interest, the trust is presumed to control the funds’ investment advisors under the Investment Company Act of 1940. This change triggered the need for a shareholder proxy to approve new management and subadvisory agreements for the funds. I am happy to report that all of the proposals contained in the proxy received the necessary votes and were approved.
On behalf of the board, I want to once again thank Jim for his mutual fund board service. More than three years ago, Jim and Richard Brown installed a strong and effective leadership team at American Century Investments and I look forward to continuing to work with them on behalf of fund shareholders. And while Jim no longer sits on the fund board, the inherent optimism captured by his favorite catch phrase—“The best is yet to be”—still resonates with all of us who have the privilege of serving you. I invite you to send your comments, questions or concerns to me at dhpratt@fundboardchair.com.
Best regards,
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69347x4x2.jpg)
Don Pratt
3
Performance |
One Choice Portfolios | |||||
Total Returns as of July 31, 2010 | |||||
Average Annual Returns | |||||
Ticker | Since | Inception | |||
Symbol | 1 year | 5 years | Inception | Date | |
One Choice Portfolio: | |||||
Very Conservative — | |||||
Investor Class | AONIX | 7.73% | 4.00% | 4.36% | 9/30/04 |
One Choice Portfolio: | |||||
Conservative — Investor Class | AOCIX | 9.99% | 3.61% | 4.46% | 9/30/04 |
One Choice Portfolio: | |||||
Moderate — Investor Class | AOMIX | 11.90% | 3.29% | 4.78% | 9/30/04 |
One Choice Portfolio: | |||||
Aggressive — Investor Class | AOGIX | 13.33% | 2.89% | 4.74% | 9/30/04 |
One Choice Portfolio: Very | |||||
Aggressive — Investor Class | AOVIX | 13.39% | 1.77% | 4.11% | 9/30/04 |
Russell 3000 Index | — | 14.82% | 0.05% | 2.42% | — |
Barclays Capital U.S. | |||||
Aggregate Bond Index(1) | — | 8.91% | 5.96% | 5.54% | — |
Citigroup US Broad | |||||
Investment-Grade Bond Index | — | 8.63% | 6.17% | 5.75% | — |
(1) 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 July 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-CSR/0001467105-10-000080/cl-ann69347x6x1.jpg)
*From 9/30/04, the Investor Class’s inception date. Not annualized.
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69347x6x2.jpg)
*From 9/30/04, the Investor Class’s inception date. Not annualized.
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-CSR/0001467105-10-000080/cl-ann69347x7x1.jpg)
*From 9/30/04, the Investor Class’s inception date. Not annualized.
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69347x7x2.jpg)
*From 9/30/04, the Investor Class’s inception date. Not annualized.
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-CSR/0001467105-10-000080/cl-ann69347x8x1.jpg)
*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 as 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
Portfolio Commentary |
One Choice Portfolios
Portfolio Managers: Enrique Chang, Scott Wittman, Rich Weiss, and Irina Torelli
In May 2010, Richard Weiss joined the portfolio management team for the One Choice Portfolios. Mr. Weiss is a veteran investment professional with 26 years of experience, most recently as chief investment officer for City National Bank in California.
Performance Summary
Each of the five One Choice Portfolios advanced for the fiscal year ended July 31, 2010, with returns ranging from 7.73% for One Choice Portfolio: Very Conservative to 13.39% for One Choice Portfolio: Very Aggressive (see pages 4–7 for more detailed performance information). The gains for the 12-month period reflected positive performance across all asset classes represented in the Portfolios.
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
U.S. stocks posted double-digit gains for the 12 months ended July 31, 2010, thanks largely to improving economic conditions and unexpectedly strong corporate earnings. As the period began, the U.S. economy was showing signs of recovery following a sharp downturn in late 2008 and early 2009. Led by improving results in manufacturing activity, housing, and consumer spending, the economy posted positive growth in the third and fourth quar ters of 2009 after four consecutive quarters of declining output. By the first quarter of 2010, jobs data turned positive, providing further evidence of a burgeoning economic recovery.
In addition, corporate profits consistently exceeded expectations as many companies implemented stringent cost-management programs that helped boost profit margins. Rising demand for delayed big-ticket purchases, such as cars and appliances, also contributed to stronger earnings. As a result, stocks rose steadily for the first nine months of the period, with the major equity indices advancing by about 25%.
Market conditions changed abruptly in the last three months of the period as persistent worries about sovereign debt problems in Europe and questions about the sustainability of the domestic economic recovery (validated to some degree by weaker economic data) weighed on investor confidence. With these headwinds, the equity market peaked in late April and then reversed direction in May and June, falling sharply before bouncing back somewhat in July.
Although stocks gave back some of their gains toward the end of the period, the broad market indices returned approximately 15% overall for the 12 months. Mid- and small-cap stocks posted the best returns (see the table on the next page), outpacing large-cap shares, while value stocks outperformed growth-oriented issues across all market capitalizations.
8
One Choice Portfolios
International equity markets also advanced during the 12-month period, but they lagged the domestic market. Although foreign stocks were buoyed by better economic growth worldwide, they suffered more substantial declines in the latter half of the period in response to the sovereign debt crisis in Europe. Emerging markets were the top performers, gaining 20% as a group as these countries were less impacted by the debt turmoil. Among developed markets, countries along the Pacific Rim produced the best returns, with the significant exception of Japan, which ended the period little changed. European markets generally performed in line with the index as strong results in Scandinavian markets offset declines in countries facing the most significant fiscal challenges.
Bond Market Review
U.S. bonds generated solid gains for the 12-month period. The improving economic environment and robust corporate profit growth provided a lift to corporate bonds, which were among the best performers in the fixed-income market. In particular, corporate high-yield securities returned more than 20% for the period.
Commercial mortgage-backed securities also produced very strong returns as credit conditions in the commercial property sector improved markedly. In contrast, residential mortgage-backed securities lagged as delinquencies and foreclosures continued to increase and the Federal Reserve ended its program of buying mortgage securities to support the housing market.
Treasury bonds were the weakest overall performers as better economic conditions and increased issuance to fund a growing national deficit weighed on this segment of the bond market. However, Treasury securities outperformed during the last few months of the period amid a flight to quality as investors grew increasingly concerned about European debt issues and a slowdown in the pace of economic recovery.
Market Index Total Returns | |
For the 12 months ended July 31, 2010 | |
U.S. Stocks | |
Russell 1000 Index (Large-Cap) | 14.51% |
Russell Midcap Index | 23.21% |
Russell 2000 Index (Small-Cap) | 18.43% |
International Stocks | |
MSCI EAFE (Europe, Australasia, Far East) Index | 6.26% |
MSCI EM (Emerging Markets) Index | 19.92% |
U.S. Fixed Income | |
Barclays Capital U.S. Aggregate Bond Index | 8.91% |
Barclays Capital U.S. Corporate High-Yield Bond Index | 23.74% |
International Bonds | |
Citigroup Non-US World Government Bond Index | 4.20% |
9
One Choice Portfolios
International fixed-income markets posted modest gains for the 12 months, trailing domestic bond returns. Global interest rates were relatively stable for much of the period, but foreign bond markets rallied over the last few months amid the flight to quality brought on by the European debt crisis. However, the debt upheaval in Europe led to a steep decline in the euro, including a sharp drop versus the U.S. dollar, erasing the gains in European bonds for U.S. investors. In contrast, safe-haven currencies such as the Japanese yen rallied against the U.S. dollar during the period.
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 below for the specific underlying fund allocations for each One Choice Portfolio.)
Within the Portfolios, every equity fund delivered double-digit gains for the 12-month period. By far, the best performer was the Real Estate Fund, which gained more than 50% as economic and credit conditions improved,
Underlying Fund Allocations as a % of net assets as of July 31, 2010(1) | ||||||
Very | Very | |||||
Conservative | Conservative | Moderate | Aggressive | Aggressive | ||
Equity | ||||||
Equity Growth Fund | 4.6% | 8.6% | 15.5% | 14.0% | 17.2% | |
Growth Fund | 3.1% | 5.4% | 8.6% | 15.0% | 18.2% | |
Large Company Value Fund | 7.6% | 10.7% | 9.2% | 8.1% | 10.0% | |
Real Estate Fund | 2.1% | 2.1% | 2.1% | 2.1% | 2.0% | |
Small Company Fund | 1.0% | 1.5% | 2.0% | 2.3% | 2.5% | |
Value Fund | 4.8% | 6.6% | 5.1% | 4.2% | 5.5% | |
VistaSM Fund | 1.6% | 4.1% | 7.2% | 13.7% | 16.6% | |
Emerging Markets Fund | — | — | 4.2% | 6.7% | 7.6% | |
International Growth Fund | — | 6.2% | 10.1% | 12.6% | 15.6% | |
Total Equity | 24.8% | 45.2% | 64.0% | 78.7% | 95.2% | |
Fixed Income | ||||||
Diversified Bond Fund | 32.9% | 30.7% | 20.4% | 12.6% | 3.9% | |
High-Yield Fund | — | — | 2.0% | 3.9% | — | |
Inflation-Adjusted Bond Fund | 9.8% | 8.6% | 5.8% | 3.8% | — | |
International Bond Fund | 10.1% | 8.1% | 3.0% | — | — | |
Total Fixed Income | 52.8% | 47.4% | 31.2% | 20.3% | 3.9% | |
Prime Money Market Fund | 22.4% | 7.4% | 4.8% | 1.0% | 0.9% | |
Other Assets and Liabilities | —(2) | —(2) | —(2) | —(2) | —(2) | |
(1) | Underlying fund investments represent Investor Class. | |||||
(2) | Category is less than 0.05% of total net assets. |
10
One Choice Portfolios
allowing real estate investment trusts to strengthen their balance sheets and sustain occupancy levels. The Small Company and Emerging Markets funds were also among the better performers, with each returning about 20% for the 12 months. The laggards included the International Growth Fund, which reflected the underperformance of foreign equity markets, and the Large Company Value Fund, both of which returned just over 10%.
The leading performer among the Portfolios’ fixed-income components was the High-Yield Fund, which returned 19% for the reporting period as demand for high-yield corporate bonds increased markedly in an improving economic environment. The Inflation-Adjusted Bond and Diversified Bond (the Portfolios’ largest fixed-income holding) funds posted returns in line with the broad bond indices, while the International Bond Fund posted a more modest gain for the 12-month period.
Portfolio Strategy
Each Portfolio has a “neutral” asset mix (the target allocations for stocks, bonds, and cash) 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.
We made no changes to the Portfolios’ broad tactical allocation during the 12-month period. The Portfolios remained defensively positioned, with a slight overweight position in bonds and a matching underweight position in stocks, based on our expectations of an uneven economic and financial recovery. The strength of the economic rebound in 2009 helped stocks outperform bonds overall for the 12 months, but bumps in the road late in the period enabled bonds to outperform stocks during the last six months.
In the Portfolios’ equity holdings, we continued to emphasize growth over value, with an overweight position in the Growth Fund and underweight positions in the Value and Large Company Value funds. This positioning added value as the Growth Fund outperformed the two value funds for the 12 months, contrary to the outperformance of value stocks in the broad equity market. Stock selection contributed favorably to results in the International Growth Fund, particularly over the last six months, and the Small Company Fund. In contrast, security selection in the Vista Fund, the Portfolios’ mid-cap growth component, and the two value funds detracted from performance.
The Diversified Bond Fund, the largest fixed-income component in each Portfolio, performed in line with the broad bond market indices. Sector allocation, most notably an overweight position in corporate bonds and an underweight position in Treasury bonds, contributed positively to performance during the 12-month period. However, Diversified Bond’s exposure to euro-denominated securities and positioning for a flatter yield curve weighed on results. The High-Yield Fund generated the best absolute return in the fixed-income portion, but it underperformed its benchmark index.
11
One Choice Portfolios
Outlook
We appear to be facing what some have called a “square root” economic recovery—after a sharp decline in late 2008 and early 2009, the economy enjoyed a robust but brief period of growth, and now we are experiencing a plateau of modest but steady economic activity. The current level of growth is sufficient to keep the economy from sliding back into recession, but not enough to reverse or undo much of the damage caused by the previous downturn.
Additionally, a substantial debt overhang further clouds the global economic outlook. Europe remains mired in a crisis of confidence as soaring budget deficits in several countries weigh on their sovereign debt. In the U.S., many state governments are struggling to balance their budgets amid declining tax revenues, while consumer debt levels remain near record highs. The inevitable continuation of deleveraging is likely to constrain growth going forward.
Consequently, we remain cautious in our tactical allocation. In the near term, we intend to maintain our current positioning, with an underweight in stocks and a corresponding overweight in bonds. However, this positioning is subject to change as market conditions warrant. Regardless, we continue to believe that broad-based diversification among asset classes and within asset classes is essential to long-term investing success.
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 February 1, 2010 to July 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 | 2/1/10 - | Expense | 2/1/10 - | Expense | ||
2/1/10 | 7/31/10 | 7/31/10 | Ratio(1) | 7/31/10 | Ratio(2) | ||
One Choice Portfolio: Very Conservative | |||||||
Actual | $1,000 | $1,031.80 | $0.05 | 0.01% | $3.32 | 0.66% | |
Hypothetical | $1,000 | $1,024.74 | $0.05 | 0.01% | $3.31 | 0.66% | |
One Choice Portfolio: Conservative | |||||||
Actual | $1,000 | $1,039.70 | $0.05 | 0.01% | $3.84 | 0.76% | |
Hypothetical | $1,000 | $1,024.74 | $0.05 | 0.01% | $3.81 | 0.76% | |
One Choice Portfolio: Moderate | |||||||
Actual | $1,000 | $1,046.30 | $0.05 | 0.01% | $4.36 | 0.86% | |
Hypothetical | $1,000 | $1,024.74 | $0.05 | 0.01% | $4.31 | 0.86% | |
One Choice Portfolio: Aggressive | |||||||
Actual | $1,000 | $1,052.90 | $0.05 | 0.01% | $4.89 | 0.96% | |
Hypothetical | $1,000 | $1,024.74 | $0.05 | 0.01% | $4.81 | 0.96% | |
One Choice Portfolio: Very Aggressive | |||||||
Actual | $1,000 | $1,050.90 | $0.05 | 0.01% | $5.24 | 1.03% | |
Hypothetical | $1,000 | $1,024.74 | $0.05 | 0.01% | $5.16 | 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 181, 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. |
14
Schedule of Investments |
One Choice Portfolios | ||||||||
JULY 31, 2010 | ||||||||
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 — 42.7% | DOMESTIC FIXED INCOME FUNDS — 39.3% | |||||||
Diversified Bond Fund | Diversified Bond Fund | |||||||
Investor Class | 4,746,113 | $ 52,112,325 | Investor Class | 9,115,626 | $ 100,089,575 | |||
Inflation-Adjusted Bond | Inflation-Adjusted Bond | |||||||
Fund Investor Class | 1,313,381 | 15,484,765 | Fund Investor Class | 2,393,982 | 28,225,050 | |||
67,597,090 | 128,314,625 | |||||||
DOMESTIC EQUITY FUNDS — 24.8% | DOMESTIC EQUITY FUNDS — 39.0% | |||||||
Equity Growth Fund | Equity Growth Fund | |||||||
Investor Class | 397,465 | 7,277,580 | Investor Class | 1,538,577 | 28,171,353 | |||
Growth Fund Investor Class | 221,318 | 4,853,509 | Growth Fund Investor Class | 797,286 | 17,484,472 | |||
Large Company Value Fund | Large Company Value Fund | |||||||
Investor Class | 2,461,080 | 12,108,514 | Investor Class | 7,107,213 | 34,967,490 | |||
Real Estate Fund | Real Estate Fund | |||||||
Investor Class | 205,468 | 3,398,439 | Investor Class | 413,404 | 6,837,699 | |||
Small Company Fund | Small Company Fund | |||||||
Investor Class | 247,235 | 1,619,390 | Investor Class | 760,916 | 4,983,999 | |||
Value Fund Investor Class | 1,499,276 | 7,646,308 | Value Fund Investor Class | 4,209,813 | 21,470,044 | |||
Vista Fund Investor Class(2) | 180,992 | 2,450,635 | Vista Fund Investor Class(2) | 993,547 | 13,452,627 | |||
39,354,375 | 127,367,684 | |||||||
MONEY MARKET FUNDS — 22.4% | INTERNATIONAL FIXED INCOME FUNDS — 8.1% | |||||||
Prime Money Market Fund | International Bond Fund | |||||||
Investor Class | 35,502,884 | 35,502,884 | Investor Class | 1,852,002 | 26,428,067 | |||
INTERNATIONAL FIXED INCOME FUNDS — 10.1% | MONEY MARKET FUNDS — 7.4% | |||||||
International Bond Fund | Prime Money Market Fund | |||||||
Investor Class | 1,126,343 | 16,072,908 | Investor Class | 24,171,296 | 24,171,296 | |||
TOTAL INVESTMENT | INTERNATIONAL EQUITY FUNDS — 6.2% | |||||||
SECURITIES — 100.0% | International Growth Fund | |||||||
(Cost $147,114,874) | 158,527,257 | Investor Class | 2,098,871 | 20,275,093 | ||||
OTHER ASSETS AND LIABILITIES(3) | (4,474) | TOTAL INVESTMENT | ||||||
TOTAL NET ASSETS — 100.0% | $158,522,783 | SECURITIES — 100.0% | ||||||
(Cost $314,079,688) | 326,556,765 | |||||||
Notes to Schedule of Investments | OTHER ASSETS AND LIABILITIES(3) | (8,553) | ||||||
(1) | Investments are funds within the American Century Investments | TOTAL NET ASSETS — 100.0% | $326,548,212 | |||||
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 than 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 — 49.7% | DOMESTIC EQUITY FUNDS — 59.4% | |||||||
Equity Growth Fund | Equity Growth Fund | |||||||
Investor Class | 5,383,922 | $ 98,579,618 | Investor Class | 3,228,542 | $ 59,114,606 | |||
Growth Fund Investor Class | 2,484,326 | 54,481,275 | Growth Fund Investor Class | 2,880,752 | 63,174,894 | |||
Large Company Value Fund | Large Company Value Fund | |||||||
Investor Class | 11,806,209 | 58,086,548 | Investor Class | 6,914,154 | 34,017,635 | |||
Real Estate Fund | Real Estate Fund | |||||||
Investor Class | 801,373 | 13,254,706 | Investor Class | 523,311 | 8,655,563 | |||
Small Company Fund | Small Company Fund | |||||||
Investor Class | 1,979,244 | 12,964,048 | Investor Class | 1,454,226 | 9,525,178 | |||
Value Fund Investor Class | 6,314,585 | 32,204,384 | Value Fund Investor Class | 3,505,285 | 17,876,953 | |||
Vista Fund Investor Class(2) | 3,364,248 | 45,551,917 | Vista Fund Investor Class(2) | 4,264,812 | 57,745,553 | |||
315,122,496 | 250,110,382 | |||||||
DOMESTIC FIXED INCOME FUNDS — 28.2% | DOMESTIC FIXED INCOME FUNDS — 20.3% | |||||||
Diversified Bond Fund | Diversified Bond Fund | |||||||
Investor Class | 11,809,683 | 129,670,314 | Investor Class | 4,844,778 | 53,195,663 | |||
High-Yield Fund | High-Yield Fund | |||||||
Investor Class | 2,116,445 | 12,614,012 | Investor Class | 2,763,803 | 16,472,268 | |||
Inflation-Adjusted Bond | Inflation-Adjusted Bond | |||||||
Fund Investor Class | 3,093,751 | 36,475,320 | Fund Investor Class | 1,346,656 | 15,877,079 | |||
178,759,646 | 85,545,010 | |||||||
INTERNATIONAL EQUITY FUNDS — 14.3% | INTERNATIONAL EQUITY FUNDS — 19.3% | |||||||
Emerging Markets Fund | Emerging Markets Fund | |||||||
Investor Class(2) | 3,514,509 | 26,499,397 | Investor Class(2) | 3,724,268 | 28,080,980 | |||
International Growth Fund | International Growth Fund | |||||||
Investor Class | 6,659,564 | 64,331,388 | Investor Class | 5,517,161 | 53,295,774 | |||
90,830,785 | 81,376,754 | |||||||
MONEY MARKET FUNDS — 4.8% | MONEY MARKET FUNDS — 1.0% | |||||||
Prime Money Market Fund | Prime Money Market Fund | |||||||
Investor Class | 30,436,868 | 30,436,868 | Investor Class | 3,975,011 | 3,975,011 | |||
INTERNATIONAL FIXED INCOME FUNDS — 3.0% | TOTAL INVESTMENT | |||||||
International Bond Fund | SECURITIES — 100.0% | |||||||
Investor Class | 1,345,295 | 19,197,354 | (Cost $429,370,335) | 421,007,157 | ||||
TOTAL INVESTMENT | OTHER ASSETS AND LIABILITIES(3) | 41,871 | ||||||
SECURITIES — 100.0% | TOTAL NET ASSETS — 100.0% | $421,049,028 | ||||||
(Cost $632,338,504) | 634,347,149 | |||||||
OTHER ASSETS AND LIABILITIES(3) | (13,851) | Notes to Schedule of Investments | ||||||
TOTAL NET ASSETS — 100.0% | $634,333,298 | (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 | 1,539,503 | $ 28,188,304 | |
Growth Fund Investor Class | 1,359,294 | 29,809,327 | |
Large Company Value Fund | |||
Investor Class | 3,337,311 | 16,419,570 | |
Real Estate Fund | |||
Investor Class | 202,106 | 3,342,833 | |
Small Company Fund | |||
Investor Class | 624,321 | 4,089,304 | |
Value Fund Investor Class | 1,751,620 | 8,933,262 | |
Vista Fund Investor Class(2) | 2,003,218 | 27,123,565 | |
117,906,165 | |||
INTERNATIONAL EQUITY FUNDS — 23.2% | |||
Emerging Markets Fund | |||
Investor Class(2) | 1,653,803 | 12,469,674 | |
International Growth Fund | |||
Investor Class | 2,643,319 | 25,534,467 | |
38,004,141 | |||
DOMESTIC FIXED INCOME FUNDS — 3.9% | |||
Diversified Bond Fund | |||
Investor Class | 577,457 | 6,340,482 | |
MONEY MARKET FUNDS — 0.9% | |||
Prime Money Market Fund | |||
Investor Class | 1,535,120 | 1,535,120 | |
TOTAL INVESTMENT | |||
SECURITIES — 100.0% | |||
(Cost $170,428,561) | 163,785,908 | ||
OTHER ASSETS AND LIABILITIES(3) | (540) | ||
TOTAL NET ASSETS — 100.0% | $163,785,368 | ||
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 |
JULY 31, 2010 | |||
Very Conservative | Conservative | Moderate | |
Assets | |||
Investment securities in affiliates, at value (cost of | |||
$147,114,874, $314,079,688 and $632,338,504, respectively) | $158,527,257 | $326,556,765 | $634,347,149 |
Receivable for investments sold | 6,253 | — | 177,622 |
Receivable for capital shares sold | 66,726 | 526,809 | 242,352 |
Distributions receivable from affiliates | 140,121 | 269,255 | 431,039 |
158,740,357 | 327,352,829 | 635,198,162 | |
Liabilities | |||
Payable for investments purchased | 149,039 | 685,750 | 458,326 |
Payable for capital shares redeemed | 68,535 | 118,867 | 406,538 |
217,574 | 804,617 | 864,864 | |
Net Assets | $158,522,783 | $326,548,212 | $634,333,298 |
Investor Class Capital Shares, $0.01 Par Value | |||
Outstanding | 15,232,289 | 31,331,960 | 59,867,664 |
Net Asset Value Per Share | $10.41 | $10.42 | $10.60 |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $155,980,149 | $340,043,753 | $698,059,615 |
Undistributed net investment income | 181,609 | 352,606 | 564,529 |
Accumulated net realized loss on investment transactions | (9,051,358) | (26,325,224) | (66,299,491) |
Net unrealized appreciation on investments | 11,412,383 | 12,477,077 | 2,008,645 |
$158,522,783 | $326,548,212 | $634,333,298 | |
See Notes to Financial Statements. |
18
JULY 31, 2010 | ||
Aggressive | Very Aggressive | |
Assets | ||
Investment securities in affiliates, at value (cost of $429,370,335 | ||
and $170,428,561, respectively) | $421,007,157 | $163,785,908 |
Receivable for capital shares sold | 210,361 | 119,895 |
Distributions receivable from affiliates | 245,779 | 17,134 |
421,463,297 | 163,922,937 | |
Liabilities | ||
Payable for investments purchased | 292,472 | 51,284 |
Payable for capital shares redeemed | 121,797 | 86,285 |
414,269 | 137,569 | |
Net Assets | $421,049,028 | $163,785,368 |
Investor Class Capital Shares, $0.01 Par Value | ||
Outstanding | 39,176,704 | 15,567,567 |
Net Asset Value Per Share | $10.75 | $10.52 |
Net Assets Consist of: | ||
Capital (par value and paid-in surplus) | $467,867,549 | $192,794,648 |
Undistributed net investment income | 3,263,126 | 672,022 |
Accumulated net realized loss on investment transactions | (41,718,469) | (23,038,649) |
Net unrealized depreciation on investments | (8,363,178) | (6,642,653) |
$421,049,028 | $163,785,368 | |
See Notes to Financial Statements. |
19
Statement of Operations |
YEAR ENDED JULY 31, 2010 | |||
Very Conservative | Conservative | Moderate | |
Investment Income (Loss) | |||
Income: | |||
Income distributions from underlying funds — affiliates | $ 3,179,794 | $ 6,797,802 | $ 11,609,755 |
Expenses: | |||
Directors’ fees and expenses | 4,958 | 10,433 | 21,550 |
Proxy expenses | 2,643 | 3,900 | 9,647 |
7,601 | 14,333 | 31,197 | |
Net investment income (loss) | 3,172,193 | 6,783,469 | 11,578,558 |
Net Realized and Unrealized Gain (Loss) on Affiliates | |||
Net realized gain (loss) on sale of investments | |||
in underlying funds | (1,495,706) | (3,919,556) | (10,719,101) |
Change in net unrealized appreciation (depreciation) | |||
on investments in underlying funds | 8,316,698 | 23,808,868 | 64,046,336 |
Net realized and unrealized gain (loss) on affiliates | 6,820,992 | 19,889,312 | 53,327,235 |
Net Increase (Decrease) in Net Assets | |||
Resulting from Operations | $ 9,993,185 | $26,672,781 | $ 64,905,793 |
See Notes to Financial Statements. |
20
YEAR ENDED JULY 31, 2010 | ||
Aggressive | Very Aggressive | |
Investment Income (Loss) | ||
Income: | ||
Income distributions from underlying funds — affiliates | $ 6,416,363 | $ 1,522,538 |
Expenses: | ||
Directors’ fees and expenses | 14,131 | 5,668 |
Proxy expenses | 8,297 | 4,398 |
22,428 | 10,066 | |
Net investment income (loss) | 6,393,935 | 1,512,472 |
Net Realized and Unrealized Gain (Loss) on Affiliates | ||
Net realized gain (loss) on sale of investments in underlying funds | (6,487,369) | (4,511,680) |
Change in net unrealized appreciation (depreciation) | ||
on investments in underlying funds | 47,350,069 | 22,323,100 |
Net realized and unrealized gain (loss) on affiliates | 40,862,700 | 17,811,420 |
Net Increase (Decrease) in Net Assets Resulting from Operations | $47,256,635 | $19,323,892 |
See Notes to Financial Statements. |
21
Statement of Changes in Net Assets |
YEARS ENDED JULY 31, 2010 AND JULY 31, 2009 | ||||
Very Conservative | Conservative | |||
Increase (Decrease) in Net Assets | 2010 | 2009 | 2010 | 2009 |
Operations | ||||
Net investment income (loss) | $ 3,172,193 | $ 2,962,020 | $ 6,783,469 | $ 7,473,349 |
Net realized gain (loss) | (1,495,706) | (6,864,019) | (3,919,556) | (20,479,852) |
Change in net unrealized | ||||
appreciation (depreciation) | 8,316,698 | 4,009,013 | 23,808,868 | (6,276,066) |
Net increase (decrease) in net assets | ||||
resulting from operations | 9,993,185 | 107,014 | 26,672,781 | (19,282,569) |
Distributions to Shareholders | ||||
From net investment income | (3,129,127) | (3,036,159) | (6,708,261) | (7,787,898) |
From net realized gains | — | (540,084) | — | (5,048,736) |
Decrease in net assets from distributions | (3,129,127) | (3,576,243) | (6,708,261) | (12,836,634) |
Capital Share Transactions | ||||
Proceeds from shares sold | 88,978,919 | 83,855,930 | 104,862,236 | 71,600,317 |
Proceeds from reinvestment of distributions | 3,057,009 | 3,477,111 | 6,538,786 | 12,604,341 |
Payments for shares redeemed | (55,076,160) | (53,766,219) | (57,221,194) | (82,757,201) |
Net increase (decrease) in net assets | ||||
from capital share transactions | 36,959,768 | 33,566,822 | 54,179,828 | 1,447,457 |
Net increase (decrease) in net assets | 43,823,826 | 30,097,593 | 74,144,348 | (30,671,746) |
Net Assets | ||||
Beginning of period | 114,698,957 | 84,601,364 | 252,403,864 | 283,075,610 |
End of period | $158,522,783 | $114,698,957 | $326,548,212 | $252,403,864 |
Undistributed net investment income | $181,609 | $138,543 | $352,606 | $277,398 |
Transactions in Shares of the Funds | ||||
Sold | 8,692,009 | 8,786,463 | 10,227,161 | 7,629,234 |
Issued in reinvestment of distributions | 298,533 | 363,375 | 636,590 | 1,364,932 |
Redeemed | (5,371,858) | (5,700,965) | (5,586,664) | (8,928,048) |
Net increase (decrease) in shares | ||||
of the funds | 3,618,684 | 3,448,873 | 5,277,087 | 66,118 |
See Notes to Financial Statements. |
22
YEARS ENDED JULY 31, 2010 AND JULY 31, 2009 | ||||
Moderate | Aggressive | |||
Increase (Decrease) in Net Assets | 2010 | 2009 | 2010 | 2009 |
Operations | ||||
Net investment income (loss) | $ 11,578,558 | $ 13,376,941 | $ 6,393,935 | $ 6,818,656 |
Net realized gain (loss) | (10,719,101) | (51,077,345) | (6,487,369) | (31,944,153) |
Change in net unrealized | ||||
appreciation (depreciation) | 64,046,336 | (45,261,904) | 47,350,069 | (50,610,667) |
Net increase (decrease) in net assets | ||||
resulting from operations | 64,905,793 | (82,962,308) | 47,256,635 | (75,736,164) |
Distributions to Shareholders | ||||
From net investment income | (11,497,528) | (13,912,448) | (5,719,359) | (7,877,338) |
From net realized gains | — | (19,257,364) | — | (15,603,260) |
Decrease in net assets from distributions | (11,497,528) | (33,169,812) | (5,719,359) | (23,480,598) |
Capital Share Transactions | ||||
Proceeds from shares sold | 133,900,548 | 106,420,172 | 92,780,874 | 74,594,664 |
Proceeds from reinvestment of distributions | 11,225,795 | 32,565,961 | 5,656,721 | 23,214,995 |
Payments for shares redeemed | (106,383,671) | (132,504,961) | (70,014,689) | (73,590,633) |
Net increase (decrease) in net assets | ||||
from capital share transactions | 38,742,672 | 6,481,172 | 28,422,906 | 24,219,026 |
Net increase (decrease) in net assets | 92,150,937 | (109,650,948) | 69,960,182 | (74,997,736) |
Net Assets | ||||
Beginning of period | 542,182,361 | 651,833,309 | 351,088,846 | 426,086,582 |
End of period | $634,333,298 | $542,182,361 | $421,049,028 | $351,088,846 |
Undistributed net investment income | $564,529 | $483,499 | $3,263,126 | $2,588,550 |
Transactions in Shares of the Funds | ||||
Sold | 12,832,318 | 11,410,931 | 8,797,931 | 8,103,219 |
Issued in reinvestment of distributions | 1,069,575 | 3,652,095 | 531,147 | 2,770,280 |
Redeemed | (10,217,434) | (14,468,114) | (6,657,724) | (8,142,991) |
Net increase (decrease) in shares | ||||
of the funds | 3,684,459 | 594,912 | 2,671,354 | 2,730,508 |
See Notes to Financial Statements. |
23
YEARS ENDED JULY 31, 2010 AND JULY 31, 2009 | ||
Very Aggressive | ||
Increase (Decrease) in Net Assets | 2010 | 2009 |
Operations | ||
Net investment income (loss) | $ 1,512,472 | $ 1,946,502 |
Net realized gain (loss) | (4,511,680) | (16,311,084) |
Change in net unrealized appreciation (depreciation) | 22,323,100 | (25,530,622) |
Net increase (decrease) in net assets resulting from operations | 19,323,892 | (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 | 31,332,625 | 38,191,366 |
Proceeds from reinvestment of distributions | 1,429,864 | 9,521,101 |
Payments for shares redeemed | (32,929,993) | (33,408,768) |
Net increase (decrease) in net assets | ||
from capital share transactions | (167,504) | 14,303,699 |
Net increase (decrease) in net assets | 17,689,658 | (35,362,927) |
Net Assets | ||
Beginning of period | 146,095,710 | 181,458,637 |
End of period | $163,785,368 | $146,095,710 |
Undistributed net investment income | $672,022 | $626,280 |
Transactions in Shares of the Fund | ||
Sold | 3,012,791 | 4,345,372 |
Issued in reinvestment of distributions | 135,404 | 1,172,550 |
Redeemed | (3,181,993) | (3,754,950) |
Net increase (decrease) in shares of the fund | (33,798) | 1,762,972 |
See Notes to Financial Statements. |
24
Notes to Financial Statements |
JULY 31, 2010
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. The corporation is authorized to issue 3,000,000,000 shares. 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). Each fun d’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 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 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 following is a summary of the funds’ significant accounting policies.
Security Valuations — Investments in the underlying funds are valued at their reported net asset value.
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 2007. 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.
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.
25
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.
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.
Acquired Fund Fees and Expenses — Each fund will indirectly realize its pro rata share of the fees and expenses of the acquired funds in which it invests. These indirect fees and expenses are not paid out of the fund’s assets but are reflected in the return realized by the fund on its investment in the acquired 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 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 (non-voting shares) in ACC.
3. Investment Transactions
Investment transactions for the year ended July 31, 2010, were as follows:
Very Conservative | Conservative | Moderate | Aggressive | Very Aggressive | |
Purchases | $58,570,579 | $75,386,416 | $91,125,696 | $61,523,279 | $14,744,207 |
Sales | $21,570,272 | $21,137,089 | $52,315,234 | $32,482,445 | $14,866,426 |
26
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 year ended July 31, 2010 follows:
July 31, 2009 | July 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 | $20,010,486 | $ 7,413,013 | $ 3,299 | $1,781,196 | 4,746,113 | $ 52,112,325 | |
Inflation-Adjusted Bond | ||||||||
Fund Investor Class | 1,018,564 | 4,980,492 | 1,606,302 | 2,812 | 414,631 | 1,313,381 | 15,484,765 | |
Equity Growth Fund | ||||||||
Investor Class | 329,231 | 2,580,926 | 1,758,993 | (360,330) | 69,126 | 397,465 | 7,277,580 | |
Growth Fund | ||||||||
Investor Class | 187,385 | 1,639,516 | 978,386 | (24,753) | 11,575 | 221,318 | 4,853,509 | |
Large Company Value | ||||||||
Fund Investor Class | 1,967,444 | 4,687,970 | 3,016,239 | (678,703) | 181,947 | 2,461,080 | 12,108,514 | |
Real Estate Fund | ||||||||
Investor Class | 213,289 | 1,178,411 | 1,208,777 | 112,285 | 42,865 | 205,468 | 3,398,439 | |
Small Company Fund | ||||||||
Investor Class | 224,824 | 473,139 | 428,184 | (79,326) | 4,033 | 247,235 | 1,619,390 | |
Value Fund | ||||||||
Investor Class | 1,233,424 | 2,629,664 | 1,616,502 | (284,286) | 120,880 | 1,499,276 | 7,646,308 | |
Vista Fund | ||||||||
Investor Class(2) | 145,440 | 852,872 | 554,182 | (142,816) | — | 180,992 | 2,450,635 | |
Prime Money Market | ||||||||
Fund Investor Class | 25,423,737 | 13,581,760 | 3,502,613 | — | 7,592 | 35,502,884 | 35,502,884 | |
International Bond Fund | ||||||||
Investor Class | 779,169 | 5,955,343 | 982,787 | (43,888) | 545,949 | 1,126,343 | 16,072,908 | |
$58,570,579 | $23,065,978 | $(1,495,706) | $3,179,794 | $158,527,257 | ||||
(1) | Distributions received includes distributions from net investment income and from capital gains, if any, from the underlying funds. | |||||||
(2) | Non-income producing. |
27
July 31, 2009 | July 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 | $28,373,839 | $ 8,645,535 | $ 95,169 | $3,515,890 | 9,115,626 | $100,089,575 | |
Inflation-Adjusted Bond | ||||||||
Fund Investor Class | 1,989,202 | 6,240,869 | 1,608,795 | 8,256 | 783,414 | 2,393,982 | 28,225,050 | |
Equity Growth Fund | ||||||||
Investor Class | 1,349,108 | 5,058,429 | 2,522,289 | (795,964) | 271,710 | 1,538,577 | 28,171,353 | |
Growth Fund | ||||||||
Investor Class | 711,829 | 2,689,477 | 1,012,031 | (93,721) | 41,335 | 797,286 | 17,484,472 | |
Large Company Value | ||||||||
Fund Investor Class | 5,971,111 | 7,122,470 | 2,573,625 | (924,847) | 532,553 | 7,107,213 | 34,967,490 | |
Real Estate Fund | ||||||||
Investor Class | 461,178 | 519,300 | 1,860,134 | (644,603) | 91,300 | 413,404 | 6,837,699 | |
Small Company Fund | ||||||||
Investor Class | 731,733 | 557,759 | 668,135 | (281,348) | 12,902 | 760,916 | 4,983,999 | |
Value Fund | ||||||||
Investor Class | 3,659,900 | 3,615,553 | 1,410,927 | (515,269) | 343,218 | 4,209,813 | 21,470,044 | |
Vista Fund | ||||||||
Investor Class(2) | 840,146 | 2,504,049 | 819,002 | (239,273) | — | 993,547 | 13,452,627 | |
International Bond Fund | ||||||||
Investor Class | 1,352,745 | 7,835,832 | 678,140 | (53,516) | 917,306 | 1,852,002 | 26,428,067 | |
Prime Money Market | ||||||||
Fund Investor Class | 18,792,481 | 6,367,165 | 988,350 | — | 5,468 | 24,171,296 | 24,171,296 | |
International Growth | ||||||||
Fund Investor Class | 1,803,403 | 4,501,674 | 2,269,682 | (474,440) | 282,706 | 2,098,871 | 20,275,093 | |
$75,386,416 | $25,056,645 | $(3,919,556) | $6,797,802 | $326,556,765 | ||||
(1) | Distributions received includes distributions from net investment income and from capital gains, if any, from the underlying funds. | |||||||
(2) | Non-income producing. |
28
July 31, 2009 | July 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 | $ 8,604,097 | $ 8,461,139 | $ (2,733,405) | $ 1,029,407 | 5,383,922 | $ 98,579,618 |
Growth Fund | |||||||
Investor Class | 2,441,838 | 3,973,808 | 3,426,166 | (264,866) | 139,687 | 2,484,326 | 54,481,275 |
Large Company Value | |||||||
Fund Investor Class | 10,842,635 | 6,604,507 | 3,207,779 | (1,184,462) | 938,783 | 11,806,209 | 58,086,548 |
Real Estate Fund | |||||||
Investor Class | 976,153 | 558,531 | 5,105,977 | (1,951,552) | 192,656 | 801,373 | 13,254,706 |
Small Company Fund | |||||||
Investor Class | 2,066,948 | 537,113 | 1,871,338 | (810,488) | 36,686 | 1,979,244 | 12,964,048 |
Value Fund | |||||||
Investor Class | 5,964,772 | 2,514,679 | 1,294,353 | (494,440) | 549,592 | 6,314,585 | 32,204,384 |
Vista Fund | |||||||
Investor Class(2) | 3,113,198 | 4,831,134 | 2,496,312 | (761,271) | — | 3,364,248 | 45,551,917 |
Diversified Bond Fund | |||||||
Investor Class | 10,433,340 | 33,090,619 | 18,465,398 | 260,673 | 4,905,287 | 11,809,683 | 129,670,314 |
High-Yield Fund | |||||||
Investor Class | 1,999,943 | 1,346,581 | 781,444 | (84,212) | 1,029,982 | 2,116,445 | 12,614,012 |
Inflation-Adjusted Bond | |||||||
Fund Investor Class | 2,811,911 | 6,966,067 | 3,758,998 | 46,001 | 1,077,856 | 3,093,751 | 36,475,320 |
Emerging Markets Fund | |||||||
Investor Class(2) | 3,599,521 | 1,973,990 | 3,351,818 | (755,649) | — | 3,514,509 | 26,499,397 |
International Growth | |||||||
Fund Investor Class | 6,367,747 | 9,094,484 | 8,410,854 | (1,966,138) | 976,101 | 6,659,564 | 64,331,388 |
Prime Money Market | |||||||
Fund Investor Class | 25,707,084 | 6,859,142 | 2,129,358 | — | 7,365 | 30,436,868 | 30,436,868 |
International Bond Fund | |||||||
Investor Class | 1,075,634 | 4,170,944 | 273,401 | (19,292) | 726,353 | 1,345,295 | 19,197,354 |
$91,125,696 | $63,034,335 | $(10,719,101) | $11,609,755 | $634,347,149 | |||
(1) Distributions received includes distributions from net investment income and from capital gains, if any, from the underlying funds. | |||||||
(2) Non-income producing. |
29
July 31, 2009 | July 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 | $ 5,496,374 | $ 2,650,007 | $ (896,268) | $ 609,812 | 3,228,542 | $ 59,114,606 | |
Growth Fund | ||||||||
Investor Class | 2,762,658 | 5,307,037 | 3,112,538 | (260,197) | 158,501 | 2,880,752 | 63,174,894 | |
Large Company Value | ||||||||
Fund Investor Class | 6,180,538 | 4,053,327 | 764,324 | (284,345) | 549,359 | 6,914,154 | 34,017,635 | |
Real Estate Fund | ||||||||
Investor Class | 625,780 | 373,260 | 3,436,879 | (1,560,693) | 123,215 | 523,311 | 8,655,563 | |
Small Company Fund | ||||||||
Investor Class | 1,490,657 | 404,500 | 1,136,334 | (485,541) | 27,150 | 1,454,226 | 9,525,178 | |
Value Fund | ||||||||
Investor Class | 3,251,074 | 1,504,405 | 369,564 | (142,468) | 306,676 | 3,505,285 | 17,876,953 | |
Vista Fund | ||||||||
Investor Class(2) | 3,850,286 | 7,415,671 | 2,996,886 | (750,802) | — | 4,264,812 | 57,745,553 | |
Diversified Bond Fund | ||||||||
Investor Class | 4,143,713 | 18,220,033 | 10,755,473 | 140,040 | 2,002,030 | 4,844,778 | 53,195,663 | |
High-Yield Fund | ||||||||
Investor Class | 2,565,249 | 3,116,202 | 2,220,763 | (229,288) | 1,363,227 | 2,763,803 | 16,472,268 | |
Inflation-Adjusted Bond | ||||||||
Fund Investor Class | 1,202,474 | 4,360,438 | 2,723,585 | 37,664 | 478,316 | 1,346,656 | 15,877,079 | |
Emerging Markets Fund | ||||||||
Investor Class(2) | 3,750,038 | 2,072,772 | 2,922,037 | (683,641) | — | 3,724,268 | 28,080,980 | |
International Growth | ||||||||
Fund Investor Class | 5,104,283 | 8,085,825 | 5,445,125 | (1,371,830) | 797,116 | 5,517,161 | 53,295,774 | |
Prime Money Market | ||||||||
Fund Investor Class | 3,297,875 | 1,113,435 | 436,299 | — | 961 | 3,975,011 | 3,975,011 | |
$61,523,279 | $38,969,814 | $(6,487,369) | $6,416,363 | $421,007,157 | ||||
(1) | Distributions received includes distributions from net investment income and from capital gains, if any, from the underlying funds. | |||||||
(2) | Non-income producing. |
30
July 31, 2009 | July 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 | $ 1,693,497 | $ 2,390,759 | $ (774,488) | $ 302,590 | 1,539,503 | $ 28,188,304 | |
Growth Fund | ||||||||
Investor Class | 1,386,953 | 1,902,988 | 2,695,990 | (190,938) | 78,476 | 1,359,294 | 29,809,327 | |
Large Company Value | ||||||||
Fund Investor Class | 3,189,968 | 1,181,441 | 718,006 | (269,322) | 277,393 | 3,337,311 | 16,419,570 | |
Real Estate Fund | ||||||||
Investor Class | 258,650 | 125,847 | 1,519,243 | (555,907) | 49,029 | 202,106 | 3,342,833 | |
Small Company Fund | ||||||||
Investor Class | 683,588 | 118,256 | 847,892 | (344,806) | 12,356 | 624,321 | 4,089,304 | |
Value Fund | ||||||||
Investor Class | 1,736,774 | 528,871 | 708,220 | (265,098) | 159,683 | 1,751,620 | 8,933,262 | |
Vista Fund | ||||||||
Investor Class(2) | 1,943,972 | 2,733,490 | 2,749,841 | (698,006) | — | 2,003,218 | 27,123,565 | |
Emerging Markets Fund | ||||||||
Investor Class(2) | 1,785,207 | 588,913 | 1,940,628 | (417,182) | — | 1,653,803 | 12,469,674 | |
International Growth | ||||||||
Fund Investor Class | 2,611,903 | 3,157,152 | 3,808,554 | (1,018,809) | 398,332 | 2,643,319 | 25,534,467 | |
Diversified Bond Fund | ||||||||
Investor Class | 527,307 | 2,287,430 | 1,747,027 | 22,876 | 244,290 | 577,457 | 6,340,482 | |
Prime Money Market | ||||||||
Fund Investor Class | 1,360,744 | 426,322 | 251,946 | — | 389 | 1,535,120 | 1,535,120 | |
$14,744,207 | $19,378,106 | $(4,511,680) | $1,522,538 | $163,785,908 | ||||
(1) | Distributions received includes distributions from net investment income and from capital gains, if any, 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 unadjusted 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).
31
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
As of July 31, 2010, the valuation inputs used to determine the fair value of the funds’ securities were classified as Level 1. The Schedule of Investments provides additional details on the funds’ portfolio holdings.
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 tax character of distributions paid during the years ended July 31, 2010 and July 31, 2009 were as follows:
Very Conservative | Conservative | |||
2010 | 2009 | 2010 | 2009 | |
Distributions Paid From | ||||
Ordinary income | $3,129,127 | $3,128,083 | $6,708,261 | $7,790,109 |
Long-term capital gains | — | $448,160 | — | $5,046,525 |
Moderate | Aggressive | |||
2010 | 2009 | 2010 | 2009 | |
Distributions Paid From | ||||
Ordinary income | $11,497,528 | $13,916,492 | $5,719,359 | $7,878,906 |
Long-term capital gains | — | $19,253,320 | — | $15,601,692 |
Very Aggressive | ||||
2010 | 2009 | |||
Distributions Paid From | ||||
Ordinary income | $1,466,730 | $1,903,399 | ||
Long-term capital gains | — | $7,868,023 |
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.
32
As of July 31, 2010, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Very Conservative | Conservative | Moderate | Aggressive | Very Aggressive | |
Federal tax cost | |||||
of investments | $155,958,074 | $336,513,561 | $682,382,544 | $461,616,956 | $186,717,070 |
Gross tax appreciation | |||||
of investments | $2,569,183 | $ 630,355 | $ 9,316,826 | $ 6,041,682 | $ 1,330,114 |
Gross tax depreciation | |||||
of investments | — | (10,587,151) | (57,352,221) | (46,651,481) | (24,261,276) |
Net tax appreciation | |||||
(depreciation) | |||||
of investments | $2,569,183 | $(9,956,796) | $(48,035,395) | $(40,609,799) | $(22,931,162) |
Undistributed | |||||
ordinary income | $181,609 | $352,606 | $564,529 | $3,263,126 | $672,022 |
Accumulated capital losses | $(106,397) | $(3,752,539) | $(14,754,776) | $(7,633,078) | $(5,183,336) |
Capital loss deferrals | $(101,761) | $(138,812) | $(1,500,675) | $(1,838,770) | $(1,566,804) |
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.
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 as follows:
2017 | 2018 | |
Very Conservative | — | $(106,397) |
Conservative | $(685,394) | $(3,067,145) |
Moderate | $(3,239,053) | $(11,515,723) |
Aggressive | $(2,141,306) | $(5,491,772) |
Very Aggressive | $(2,321,712) | $(2,861,624) |
The capital loss deferrals listed above represent net capital losses incurred in the nine-month period ended July 31, 2010. The funds have elected to treat such losses as having been incurred in the following fiscal year for federal income tax purposes.
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 succeeded Mr. Stowers as trustee of a trust that holds a greater-than-25% voting interest in ACC, the parent corporation of each fund’s advisor. Under the 1940 Act, this is presumed to represent control of ACC even though it is less than a majority interest. The change of trustee was considered a change of control of ACC and therefore also a change of control of each fund’s advisor even though there has been no change to their management and none is anticipated. The change of control resulted in the assignment of each fund’s investment advisory agreement. Under the 1940 Act, an assignment automatically terminated such agreement, making the approval of a new agreement necessary.
33
On February 18, 2010, the Board of Directors approved interim investment advisory agreements under which each fund was managed until new agreements were approved by fund shareholders. On March 29, 2010, the Board of Directors approved new investment advisory agreements. The interim agreements and the new agreements are substantially identical to the terminated agreements (with the exception of different effective and termination dates) and did not result in changes in the management of American Century Investments, the funds, their investment objectives, fees or services provided. The new agreement for each fund was approved by shareholders at a Special Meeting of Shareholders on June 16, 2010. The new agreements went into effect on July 16, 2010.
10. Other Tax Information (Unaudited)
The following information is provided pursuant to provisions of the Internal Revenue Code.
The funds hereby designate up to the maximum amount allowable as qualified dividend income for the fiscal year ended July 31, 2010.
For corporate taxpayers, the funds hereby designate the following ordinary income distributions, or up to the maximum amount allowable, as qualified for the corporate dividends received deduction for the fiscal year ended July 31, 2010.
Very Conservative | Conservative | Moderate | Aggressive | Very Aggressive |
$387,542 | $1,201,729 | $2,694,180 | $1,651,515 | $830,504 |
34
Financial Highlights |
One Choice Portfolio: Very Conservative | ||||||
Investor Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.88 | $10.36 | $10.55 | $10.23 | $10.27 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.23 | 0.30 | 0.43 | 0.40 | 0.37 | |
Net Realized and Unrealized Gain (Loss) | 0.53 | (0.40) | (0.12) | 0.33 | (0.04) | |
Total From Investment Operations | 0.76 | (0.10) | 0.31 | 0.73 | 0.33 | |
Distributions | ||||||
From Net Investment Income | (0.23) | (0.32) | (0.46) | (0.39) | (0.36) | |
From Net Realized Gains | — | (0.06) | (0.04) | (0.02) | (0.01) | |
Total Distributions | (0.23) | (0.38) | (0.50) | (0.41) | (0.37) | |
Net Asset Value, End of Period | $10.41 | $9.88 | $10.36 | $10.55 | $10.23 | |
Total Return(2) | 7.73% | (0.87)% | 2.91% | 7.23% | 3.27% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses to | ||||||
Average Net Assets(3) | 0.01% | 0.00%(4) | 0.00%(4) | 0.00%(4) | 0.00%(4) | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 2.25% | 3.13% | 4.06% | 3.83% | 3.67% | |
Portfolio Turnover Rate | 15% | 42% | 17% | 17% | 34% | |
Net Assets, End of Period (in thousands) | $158,523 | $114,699 | $84,601 | $40,983 | $19,852 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||||
(4) | Ratio was less than 0.005%. |
See Notes to Financial Statements.
35
One Choice Portfolio: Conservative | ||||||
Investor Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.69 | $10.89 | $11.38 | $10.66 | $10.54 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.23 | 0.29 | 0.44 | 0.35 | 0.34 | |
Net Realized and Unrealized Gain (Loss) | 0.73 | (0.98) | (0.40) | 0.75 | 0.12 | |
Total From Investment Operations | 0.96 | (0.69) | 0.04 | 1.10 | 0.46 | |
Distributions | ||||||
From Net Investment Income | (0.23) | (0.31) | (0.45) | (0.35) | (0.33) | |
From Net Realized Gains | — | (0.20) | (0.08) | (0.03) | (0.01) | |
Total Distributions | (0.23) | (0.51) | (0.53) | (0.38) | (0.34) | |
Net Asset Value, End of Period | $10.42 | $9.69 | $10.89 | $11.38 | $10.66 | |
Total Return(2) | 9.99% | (6.05)% | 0.18% | 10.41% | 4.45% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses to | ||||||
Average Net Assets(3) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 2.29% | 3.13% | 3.85% | 3.14% | 3.23% | |
Portfolio Turnover Rate | 7% | 40% | 18% | 7% | 8% | |
Net Assets, End of Period (in thousands) | $326,548 | $252,404 | $283,076 | $227,830 | $110,384 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. Ratio was less than 0.005%. |
See Notes to Financial Statements.
36
One Choice Portfolio: Moderate | ||||||
Investor Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.65 | $11.73 | $12.58 | $11.34 | $10.97 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.20 | 0.24 | 0.43 | 0.35 | 0.34 | |
Net Realized and Unrealized Gain (Loss) | 0.94 | (1.70) | (0.70) | 1.29 | 0.38 | |
Total From Investment Operations | 1.14 | (1.46) | (0.27) | 1.64 | 0.72 | |
Distributions | ||||||
From Net Investment Income | (0.19) | (0.26) | (0.44) | (0.35) | (0.34) | |
From Net Realized Gains | — | (0.36) | (0.14) | (0.05) | (0.01) | |
Total Distributions | (0.19) | (0.62) | (0.58) | (0.40) | (0.35) | |
Net Asset Value, End of Period | $10.60 | $9.65 | $11.73 | $12.58 | $11.34 | |
Total Return(2) | 11.90% | (11.94)% | (2.37)% | 14.56% | 6.68% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses to | ||||||
Average Net Assets(3) | 0.01% | 0.00%(4) | 0.00%(4) | 0.00%(4) | 0.00%(4) | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 1.89% | 2.63% | 3.44% | 2.85% | 3.02% | |
Portfolio Turnover Rate | 9% | 32% | 18% | 7% | 7% | |
Net Assets, End of Period (in thousands) | $634,333 | $542,182 | $651,833 | $586,377 | $253,610 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||||
(4) | Ratio was less than 0.005%. |
See Notes to Financial Statements.
37
One Choice Portfolio: Aggressive | ||||||
Investor Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.62 | $12.62 | $13.69 | $11.83 | $11.26 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.17 | 0.20 | 0.41 | 0.32 | 0.31 | |
Net Realized and Unrealized Gain (Loss) | 1.11 | (2.49) | (0.90) | 1.87 | 0.56 | |
Total From Investment Operations | 1.28 | (2.29) | (0.49) | 2.19 | 0.87 | |
Distributions | ||||||
From Net Investment Income | (0.15) | (0.24) | (0.40) | (0.28) | (0.29) | |
From Net Realized Gains | — | (0.47) | (0.18) | (0.05) | (0.01) | |
Total Distributions | (0.15) | (0.71) | (0.58) | (0.33) | (0.30) | |
Net Asset Value, End of Period | $10.75 | $9.62 | $12.62 | $13.69 | $11.83 | |
Total Return(2) | 13.33% | (17.28)% | (3.97)% | 18.78% | 7.84% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses to | ||||||
Average Net Assets(3) | 0.01% | 0.00%(4) | 0.00%(4) | 0.00%(4) | 0.00%(4) | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 1.58% | 2.12% | 3.07% | 2.46% | 2.68% | |
Portfolio Turnover Rate | 8% | 27% | 17% | 7% | 6% | |
Net Assets, End of Period (in thousands) | $421,049 | $351,089 | $426,087 | $397,022 | $191,350 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||||
(4) | Ratio was less than 0.005%. |
See Notes to Financial Statements.
38
One Choice Portfolio: Very Aggressive | ||||||
Investor Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.36 | $13.11 | $14.58 | $12.23 | $11.48 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.10 | 0.13 | 0.36 | 0.25 | 0.25 | |
Net Realized and Unrealized Gain (Loss) | 1.15 | (3.17) | (1.27) | 2.40 | 0.78 | |
Total From Investment Operations | 1.25 | (3.04) | (0.91) | 2.65 | 1.03 | |
Distributions | ||||||
From Net Investment Income | (0.09) | (0.14) | (0.37) | (0.24) | (0.27) | |
From Net Realized Gains | — | (0.57) | (0.19) | (0.06) | (0.01) | |
Total Distributions | (0.09) | (0.71) | (0.56) | (0.30) | (0.28) | |
Net Asset Value, End of Period | $10.52 | $9.36 | $13.11 | $14.58 | $12.23 | |
Total Return(2) | 13.39% | (22.35)% | (6.63)% | 21.87% | 9.00% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses to | ||||||
Average Net Assets(3) | 0.01% | 0.00%(4) | 0.00%(4) | 0.00%(4) | 0.00%(4) | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 0.93% | 1.48% | 2.53% | 1.85% | 2.08% | |
Portfolio Turnover Rate | 9% | 23% | 15% | 8% | 9% | |
Net Assets, End of Period (in thousands) | $163,785 | $146,096 | $181,459 | $168,844 | $77,262 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||||
(4) | Ratio was less than 0.005%. |
See Notes to Financial Statements.
39
Report of Independent Registered Public Accounting Firm |
The Board of Directors and Shareholders,
American Century Asset Allocation Portfolios, Inc.:
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of One Choice Portfolio: Very Conservative, One Choice Portfolio: Conservative, One Choice Portfolio: Moderate, One Choice Portfolio: Aggressive and One Choice Portfolio: Very Aggressive, five of the portfolios constituting American Century Asset Allocation Portfolios, Inc. (the “Corporation”), as of July 31, 2010, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Corporation’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Corporation is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing t he accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2010, by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the respective financial positions of One Choice Portfolio: Very Conservative, One Choice Portfolio: Conservative, One Choice Portfolio: Moderate, One Choice Portfolio: Aggressive and One Choice Portfolio: Very Aggressive of American Century Asset Allocation Portfolios, Inc. as of July 31, 2010, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Kansas City, Missouri
September 17, 2010
40
Proxy Voting Results |
A special meeting of shareholders was held on June 16, 2010, to vote on the following proposals. Each proposal received the required number of votes and was adopted. A summary of voting results is listed below each proposal.
Proposal 1:
To elect one Director to the Board of Directors of American Century Asset Allocation Portfolios, Inc. (the proposal was voted on by all shareholders of funds issued by American Century Asset Allocation Portfolios, Inc.):
John R. Whitten | For: | 2,670,242,979 |
Withhold: | 39,748,764 | |
Abstain: | 0 | |
Broker Non-Vote: | 0 |
The other directors whose term of office continued after the meeting include Jonathan S. Thomas, Thomas A. Brown, Andrea C. Hall, James A. Olson, Donald H. Pratt, and M. Jeannine Strandjord.
Proposal 2:
To approve a management agreement between the fund and American Century Investment Management, Inc.:
Very Conservative | For: | 96,832,486 |
Against: | 514,445 | |
Abstain: | 2,154,680 | |
Broker Non-Vote: | 7,041,784 | |
Conservative | For: | 246,722,261 |
Against: | 2,486,507 | |
Abstain: | 5,382,472 | |
Broker Non-Vote: | 9,352,867 | |
Moderate | For: | 490,592,263 |
Against: | 4,988,576 | |
Abstain: | 9,776,867 | |
Broker Non-Vote: | 17,901,806 | |
Aggressive | For: | 308,890,584 |
Against: | 3,146,412 | |
Abstain: | 4,918,326 | |
Broker Non-Vote: | 13,187,973 | |
Very Aggressive | For: | 117,779,321 |
Against: | 1,042,737 | |
Abstain: | 2,442,694 | |
Broker Non-Vote: | 9,286,652 |
41
Management |
The Board of Directors
The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors), is 72. However, the mandatory retirement age may be extended or changed with the approval of the remaining independent directors.
Mr. Thomas is the only director who is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor).
The other directors (more than three-fourths of the total number) are independent; that is, they have never been employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS). The directors serve in this capacity for seven (in the case of Mr. Thomas, 15) registered investment companies in the American Century Investments family of funds.
The following presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Independent Directors
Thomas A. Brown
Year of Birth: 1940
Position(s) with the Funds: Director
Length of Time Served: Since 1980
Principal Occupation(s) During the Past Five Years: Managing Member, Associated Investments,
LLC (real estate investment company); Brown Cascade Properties, LLC (real estate
investment company) (2001 to 2009)
Number of Funds in Fund Complex Overseen by Director: 63
Other Directorships Held by Director During the Past Five Years: None
Education/Other Professional Experience: BS in Mechanical Engineering, University of
Kansas; formerly, Chief Executive Officer, Associated Bearings Company; formerly,
Area Vice President, Applied Industrial Technologies (bearings and power
transmission company)
Andrea C. Hall
Year of Birth: 1945
Position(s) with the Funds: Director
Length of Time Served: Since 1997
Principal Occupation(s) During the Past Five Years: Retired as advisor to the President, Midwest
Research Institute (not-for-profit research organization) (June 2006)
Number of Funds in Fund Complex Overseen by Director: 63
Other Directorships Held by Director During the Past Five Years: None
Education/Other Professional Experience: BS in Biology, Florida State University; PhD in
Biology, Georgetown University; formerly, Senior Vice President and Director of
Research Operations, Midwest Research Institute
42
James A. Olson
Year of Birth: 1942
Position(s) with the Funds: Director
Length of Time Served: Since 2007
Principal Occupation(s) During the Past Five Years: Member, Plaza Belmont LLC (private equity
fund manager); Chief Financial Officer, Plaza Belmont LLC (September 1999 to
September 2006)
Number of Funds in Fund Complex Overseen by Director: 63
Other Directorships Held by Director During the Past Five Years: Saia, Inc. and Entertainment
Properties Trust
Education/Other Professional Experience: BS in Business Administration and MBA, St. Louis
University; CPA; 21 years of experience as a partner in the accounting firm of Ernst
& Young LLP
Donald H. Pratt
Year of Birth: 1937
Position(s) with the Funds: Director, Chairman of the Board
Length of Time Served: Since 1995 (Chairman since 2005)
Principal Occupation(s) During the Past Five Years: Chairman and Chief Executive Officer,
Western Investments, Inc. (real estate company)
Number of Funds in Fund Complex Overseen by Director: 63
Other Directorships Held by Director During the Past Five Years: None
Education/Other Professional Experience: BS in Industrial Engineering, Wichita State
University; MBA, Harvard Business School; serves on the Board of Governors of
the Independent Directors Council and Investment Company Institute; formerly,
Chairman of the Board, Butler Manufacturing Company (metal buildings producer)
M. Jeannine Strandjord
Year of Birth: 1945
Position(s) with the Funds: Director
Length of Time Served: Since 1994
Principal Occupation(s) During the Past Five Years: Retired, formerly, Senior Vice President,
Process Excellence, Sprint Corporation (telecommunications company) (January
2005-September 2005)
Number of Funds in Fund Complex Overseen by Director: 63
Other Directorships Held by Director During the Past Five Years: DST Systems Inc., Euronet
Worldwide Inc., Charming Shoppes, Inc.
Education/Other Professional Experience: BS in Business Administration and Accounting,
University of Kansas; CPA; formerly, Senior Vice President of Financial Services and
Treasurer and Chief Financial Officer, Global Markets Group; Sprint Corporation;
formerly, with the accounting firm of Ernst and Whinney
John R. Whitten
Year of Birth: 1946
Position(s) with the Funds: Director
Length of Time Served: Since 2008
Principal Occupation(s) During the Past Five Years: Project Consultant, Celanese Corp.
(industrial chemical company)
Number of Funds in Fund Complex Overseen by Director: 63
Other Directorships Held by Director During the Past Five Years: Rudolph Technologies, Inc.
Professional Education/Experience: BS in Business Administration, Cleveland State
University; CPA; formerly, Chief Financial Officer and Treasurer, Applied Industrial
Technologies, Inc.; thirteen years of experience with accounting firm Deloitte &
Touche LLP
43
Interested Director
Jonathan S. Thomas
Year of Birth: 1963
Position(s) with the Funds: Director and President
Length of Time Served: Since 2007
Principal Occupation(s) During the Past Five Years: President and Chief Executive Officer,
ACC (March 2007 to present); Chief Administrative Officer, ACC (February 2006 to
February 2007); Executive Vice President, ACC (November 2005 to February 2007);
Global Chief Operating Officer and Managing Director, Morgan Stanley (investment
management) (March 2000 to November 2005). Also serves as: Chief Executive
Officer and Manager, ACS; Executive Vice President, ACIM; Director, ACC, ACIM
and other ACC subsidiaries
Number of Funds in Fund Complex Overseen by Director: 104
Other Directorships Held by Director During the Past Five Years: None
Education/Other Professional Experience: BA in Economics, University of Massachusetts;
MBA, Boston College; formerly held senior leadership roles with Fidelity
Investments, Boston Financial Services and Bank of America; serves on the Board of
Governors of the Investment Company Institute
44
Officers
The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for each of the 15 investment companies in the American Century family of funds, unless otherwise noted. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each of the officers listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name | Offices with | |
(Year of Birth) | the funds | Principal Occupation(s) During the Past Five Years |
Jonathan S. | Director and | President and Chief Executive Officer, ACC (March 2007 to present); Chief |
Thomas | President | Administrative Officer, ACC (February 2006 to February 2007); Executive Vice |
(1963) | since 2007 | President, ACC (November 2005 to February 2007); Global Chief Operating |
Officer and Managing Director, Morgan Stanley (March 2000 to November | ||
2005). Also serves as: Chief Executive Officer and Manager, ACS; Executive | ||
Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries | ||
Barry Fink | Executive | Chief Operating Officer and Executive Vice President, ACC (September 2007 |
(1955) | Vice President | to present); President, ACS (October 2007 to present); Managing Director, |
since 2007 | Morgan Stanley (2000 to 2007); Global General Counsel, Morgan Stanley | |
(2000 to 2006). Also serves as: Manager, ACS and Director, ACC and | ||
certain ACC subsidiaries | ||
Maryanne L. | Chief Compliance | Chief Compliance Officer, American Century funds, ACIM and ACS (August |
Roepke | Officer since 2006 | 2006 to present); Assistant Treasurer, ACC (January 1995 to August 2006); |
(1956) | and Senior | and Treasurer and Chief Financial Officer, various American Century funds |
Vice President | (July 2000 to August 2006). Also serves as: Senior Vice President, ACS | |
since 2000 | ||
Charles A. | General Counsel | Attorney, ACC (February 1994 to present); Vice President, ACC (November |
Etherington | since 2007 and | 2005 to present), General Counsel, ACC (March 2007 to present); Also |
(1957) | Senior Vice | serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; |
President | and Senior Vice President, ACIM and ACS | |
since 2006 | ||
Robert J. Leach | Vice President, | Vice President, ACS (February 2000 to present); and Controller, various |
(1966) | Treasurer and | American Century funds (1997 to September 2006) |
Chief Financial | ||
Officer since 2006 | ||
David H. Reinmiller | Vice President | Attorney, ACC (January 1994 to present); Associate General Counsel, ACC |
(1963) | since 2000 | (January 2001 to present); Chief Compliance Officer, American Century |
funds and ACIM (January 2001 to February 2005). Also serves as Vice | ||
President, ACIM and ACS | ||
Ward D. Stauffer | Secretary | Attorney, ACC (June 2003 – Present) |
(1960) | since 2005 |
The Statement of Additional Information has additional information about the funds’ directors and is available without charge, upon request, by calling 1-800-345-2021.
45
Board Approval of Management Agreements |
American Century Investment Management, Inc. (“ACIM” or the “Advisor”) currently serves as investment advisor to the Funds under a management agreement (the “Current Management Agreement”) that took effect on July 16, 2010, following approval by the Funds’ Board of Directors (the “Board”) and shareholders. The Advisor previously served as investment advisor to the Funds pursuant to a management agreement (the “Prior Management Agreement”) and an interim management agreement (the “Interim Management Agreement”). The Interim Management Agreement terminated in accordance with its terms on July 16, 2010, upon the effectiveness of the Current Management Agreement. The Prior Management Agreement terminated on February 16, 2010, as a result of a change of control of the Advisor’s parent company, American Century Companies, Inc. (“ACC”). The c hange in control occurred as the result of a change in the trustee of a trust created by James E. Stowers, Jr., the founder of American Century Investments, which holds shares representing a significant interest in ACC stock. Mr. Stowers previously served as the trustee of the trust. On February 16, 2010, Richard W. Brown, Co-Chairman of ACC with Mr. Stowers, became the trustee in accordance with the terms of the trust and Mr. Stowers’ long-standing estate and succession plan.
On February 18, 2010, the Board approved the Interim Agreement in accordance with Rule 15a-4 under the Investment Company Act to ensure continued management of the Funds by the Advisor after the termination of the Prior Agreement and until shareholder approval of the Current Management Agreement as required under the Act. The Board approved the Current Agreement and recommended its approval to shareholders. Fund shareholders approved the Current Agreement at a meeting held on June 16, 2010.
The Interim Agreement and the Current Agreement are substantially identical to the Prior Agreement except for their effective dates and the termination provisions of the Interim Agreement. Under the Current Agreement, the Advisor will provide the same services as provided by the Advisor, be subject to the same duties, and receive the same compensation rate as under the Prior Agreement.
Basis for Board Approval of Interim Agreement
In considering the approval of the Interim Agreement, Rule 15a-4 requires the Board to approve the contract within ten business days of the termination of the prior agreement and to determine that the compensation to be received under the interim agreement is no greater than would have been received under the corresponding prior agreement. In connection with the approval, the Board noted that it oversees on a continuous basis and evaluates at its quarterly meetings, directly and through the committees of the Board, the nature and quality of significant services provided by the Advisor, the investment performance of the Funds, shareholder services, audit and compliance functions and a variety of other matters relating to the Funds’ operations.
In evaluating the Interim Agreement, the Board, assisted by the advice of its independent legal counsel, considered a number of factors in addition to those required by the rule with no one factor being determinative to its analysis. Among the factors considered by the Board were the
46
circumstances and effect of the change of control, the fact that the Advisor will provide the same services and receive the same compensation rate as under the Prior Agreement, and that the change of control did not result in a change of the personnel managing the Funds. Upon completion of its analysis, the Board approved the Interim Agreement, determining that the continued management of the Funds by the Advisor was in the best interests of the Funds and Fund shareholders.
Basis for Board Approval of Current Agreement
At a meeting held on March 29, 2010, after considering all information presented, the Board approved, and determined to recommend that shareholders approve, the Current Agreement. In connection with that approval, the Board requested and reviewed extensive data and information compiled by the Advisor and certain independent providers of evaluation data concerning the Funds and services provided to the Funds. The Board oversees on a continuous basis and evaluates at its quarterly meetings, directly and through the committees of the Board, the nature and quality of significant services provided to the Funds, the investment performance of the Funds, shareholder services, audit and compliance functions and a variety of other matters relating to the Funds’ operations. The information considered and the discussions held at the meetings included, but were not limited to:
• the nature, extent and quality of investment management, shareholder services and other services provided to the Funds;
• the wide range of programs and services provided to the Funds and their shareholders on a routine and non-routine basis;
• the compliance policies, procedures, and regulatory experience of the Advisor;
• data comparing the cost of owning the Funds to the cost of owning similar funds;
• the fact that there will be no changes to the fees, services, or personnel who provide such services as compared to the Prior Agreement;
• data comparing each Fund’s performance to appropriate benchmarks and/or a peer group of other mutual funds with similar investment objectives and strategies;
• financial data showing the profitability of the Funds to the Advisor and the overall profitability of the Advisor;
• data comparing services provided and charges to the Funds with those for other non-fund investment management clients of the Advisor; and
• consideration of collateral or “fall-out” benefits derived by the Advisor from the management of the Funds and potential sharing of economies of scale in connection with the management of the Funds.
47
The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In particular, the Board recognized that shareholders may have invested in the Funds on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing services to the Funds.
The Board considered all of the information provided by the Advisor, the independent data providers, and the Board’s independent legal counsel, and evaluated such information for the Funds. The Board did not identify any single factor as being all-important or controlling, and each Board member may have attributed different levels of importance to different factors. In deciding to approve the Current Agreement under the terms ultimately determined by the Board to be appropriate, the Board based its decision on a number of factors, including the following:
Nature, Extent and Quality of Services – Generally. Under the Current Agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Funds. The Board noted that under the Current Agreement, the Advisor provides or arranges at its own expense a wide variety of services including:
• constructing and designing the Funds
• portfolio research and security selection
• initial capitalization/funding
• securities trading
• Fund administration
• custody of Fund assets
• daily valuation of each Fund’s portfolio
• shareholder servicing and transfer agency, including shareholder confir
mations, recordkeeping and communications
• legal services
• regulatory and portfolio compliance
• financial reporting
• marketing and distribution
The Board noted that many of these services have expanded over time both in terms of quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels and the changing regulatory environment.
48
Investment Management Services. The investment management services provided to the Funds are complex and provide Fund shareholders access to professional money management, instant diversification of their investments within an asset class, the opportunity to easily diversify among asset classes, and liquidity. As a part of its general oversight and in evaluating investment performance, the Board expects the Advisor to manage the Funds in accordance with their investment objectives and approved strategies. In providing these services, the Advisor utilizes teams of investment professionals who require extensive information technology, research, training, compliance and other systems to conduct their business. The Board, directly and through its Fund Performance Review Committee, regularly reviews investment performance informati on for the Funds, together with comparative information for appropriate benchmarks and/ or peer groups of similarly-managed funds, over different time horizons. If performance concerns are identified, the appropriate Fund receives special reviews until performance improves, during which time the Board discusses with the Advisor the reasons for such underperformance and any efforts being undertaken to improve performance.
Shareholder and Other Services. Under the Current Agreement, the Advisor will also provide the Funds with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through the various committees of the Board, regularly reviews reports and evaluations of such services. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction (as measured by external as well as internal sources), technology support, new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities. Certain aspects of shareholder and transfer agency servic e level efficiency and the quality of securities trading activities are measured by independent third party providers and are presented in comparison to other fund groups not managed by the Advisor.
Costs of Services Provided and Profitability. The Advisor provided detailed information concerning its cost of providing various services to the Funds, its profitability in managing the Funds, its overall profitability, and its financial condition. The Board reviewed with the Advisor the methodology used to prepare this financial information. The Board has also reviewed with the Advisor its methodology for compensating the investment professionals that provide services to the Funds as well as compensation to the five highest paid personnel of the Advisor. This financial information regarding the Advisor is considered in order to evaluate the Advisor’s financial condition, its ability to continue to provide services under the Current Management Agreement, and the reasonableness of the current management fees. The Board con cluded that the Advisor’s profits were reasonable in light of the services provided to the Funds.
Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. It noted that the Advisor’s practices generally meet or exceed industry best practices.
49
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Funds. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The analysis of economies of scale is further complicated by the additional services and content provided by the Advisor and its reinvestment in its ability to provide and expand those services. Accordingly, the Board seeks to evaluate economies of scale by reviewing information, such as year-over-year profitability of the Advisor generally, the profitability of its management of the Funds specifically, and the expenses incurred by the Advisor in providing various functions to the Funds. The Board believes the Adviso r is appropriately sharing economies of scale through its competitive fee structure, offering competitive fees from fund inception, fee breakpoints as each Fund increases in size, and through reinvestment in its business to provide shareholders additional services and enhancements to existing services.
Comparison to Fees of Funds not Managed by the Advisor. The Funds invest their non-cash assets entirely in other American Century Investments funds. The Funds do not pay an investment advisor fee to the advisor. Rather each fund indirectly bears its pro rata share of the expenses incurred by the underlying funds. Each of the underlying funds pay the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage expenses, taxes, interest, extraordinary expenses, and the fees and expenses of the Funds’ Independent Directors (including their independent legal counsel) and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1 940 Act. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing and shareholder services, or arranging and supervising third parties that provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, the components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Funds and provides a direct incentive to minimize adm inistrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider comparing each Fund’s unified fee to the total expense ratios of similar funds not managed by the Advisor. The Board concluded that the management fee to be paid by the Funds to the Advisor under the Current Management Agreement is reasonable in light of the services to be provided to the Funds.
50
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature and extent of the services, fees, and profitability of its advisory services to advisory clients other than the Funds. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Funds. The Board analyzed this information and concluded that the fees charged and services provided to the Funds were reasonable by comparison.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the existence of collateral benefits the Advisor may receive as a result of its relationship with the Funds. The Board concluded that the Advisor’s primary business is managing mutual funds and it generally does not use Fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. The Board noted that the Advisor receives proprietary research from broker-dealers that execute Fund portfolio transactions and concluded that this research is likely to benefit Fund shareholders. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Funds, at least in part, due to its existin g infrastructure built to serve the fund complex. The Board concluded, however, that the assets of those other clients are not material to the analysis and, in any event, are included with the assets of fund clients to determine breakpoints in each fund’s fee schedule, provided they are managed using the same investment team and strategy.
Conclusion of the Board. As a result of this process, the Board, in the absence of particular circumstances and assisted by the advice of its independent legal counsel, taking into account all of the factors discussed above and the information provided by the Advisor and others, concluded that the Current Management Agreement be approved and recommended its approval to Fund shareholders.
51
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.
52
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 Barclays Capital U.S. Corporate High-Yield Bond Index covers the universe of fixed-rate, non-investment grade corporate debt of issuers in non-emerging market countries.
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.
53
Notes |
54
Notes |
55
Notes |
56
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69347x58x1.jpg)
Contact Us | |
americancentury.com | |
Automated Information Line | 1-800-345-8765 |
Investor Services Representative | 1-800-345-2021 or |
816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 |
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.
1009
CL-ANN-69347
Annual Report | July 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 | 19 |
Market Index Total Returns | 20 |
Underlying Fund Allocations | 21 |
Shareholder Fee Examples | 24 |
Financial Statements | |
Schedule of Investments | 30 |
Statement of Assets and Liabilities | 35 |
Statement of Operations | 38 |
Statement of Changes in Net Assets | 41 |
Notes to Financial Statements | 46 |
Financial Highlights | 71 |
Report of Independent Registered Public Accounting Firm | 116 |
Other Information | |
Proxy Voting Results | 117 |
Management | 119 |
Board Approval of Management Agreements | 123 |
Additional Information | 129 |
Index Definitions | 130 |
American Century Investment Services, Inc., has entered into an agreement with LIVESTRONG for rights to use the LIVESTRONG name. For more information about the foundation, visit livestrong.org.
Any opinions expressed in this report reflect those of the author 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 securities is provided to American Cent ury 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-CSR/0001467105-10-000080/cl-ann69346x4x1.jpg)
Dear Investor:
To learn more about the capital markets, your investment, and the portfolio management strategies American Century Investments provides, we encourage you to review this shareholder report for the financial reporting period ended July 31, 2010.
On the following pages, you will find investment performance and portfolio information, presented with the expert perspective and commentary of our portfolio management team. This report remains one of our most important vehicles for conveying the information you need about your investment performance, and about the market factors and strategies that affect fund returns. For additional information on the markets, we encourage you to visit the “Insights & News” tab at our Web site, americancentury.com, for updates and further expert commentary.
The top of our Web site’s home page also provides a link to “Our Story,” which, first and foremost, outlines our commitment—since 1958—to helping clients reach their financial goals. We believe strongly that we will only be successful when our clients are successful. That’s who we are.
Another important, unique facet of our story and who we are is “Profits with a Purpose,” which describes our bond with the Stowers Institute for Medical Research (SIMR). SIMR is a world-class biomedical organization—founded by our company founder James E. Stowers, Jr. and his wife Virginia—that is dedicated to researching the causes, treatment, and prevention of gene-based diseases, including cancer. Through American Century Investments’ private ownership structure, more than 40% of our profits support SIMR.
Mr. Stowers’ example of achieving financial success and using that platform to help humanity motivates our entire American Century Investments team. His story inspires us to help each of our clients achieve success. Thank you for sharing your financial journey with us.
Sincerely,
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69346x4x2.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Independent Chairman’s Letter |
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69346x5x1.jpg)
Fellow Shareholders,
The principal event at a recent board meeting was the retirement of Jim Stowers, Jr. from the American Century Mutual Funds Kansas City board. This was one of those times when you felt like you were living a historical moment. Jim—who celebrated his 86th birthday in January—founded what was known as Twentieth Century Mutual Funds over 50 years ago. Through the years, his number one priority has been to “Put Investors First!” The board presented Jim with a resolution acknowledging that, by building a successful investment company, he has impacted the lives of many by helping them on the path to financial success.
We respect Jim’s decision to focus his energy on the Stowers Institute for Medical Research and American Century Companies, Inc. (ACC), the parent company of the funds’ investment advisor. The pioneering medical research that Jim and his wife Virginia have made possible through the Institute should enrich the lives of millions in the future.
Shortly after his retirement from the board, we received word that ACC’s co-chairman Richard W. Brown had succeeded Jim as trustee of a trust that holds a significant interest in ACC stock as a part of Jim’s long-standing estate and business succession plan. While holding less than a majority interest, the trust is presumed to control the funds’ investment advisors under the Investment Company Act of 1940. This change triggered the need for a shareholder proxy to approve new management and subadvisory agreements for the funds. I am happy to report that all of the proposals contained in the proxy received the necessary votes and were approved.
On behalf of the board, I want to once again thank Jim for his mutual fund board service. More than three years ago, Jim and Richard Brown installed a strong and effective leadership team at American Century Investments and I look forward to continuing to work with them on behalf of fund shareholders. And while Jim no longer sits on the fund board, the inherent optimism captured by his favorite catch phrase—“The best is yet to be”—still resonates with all of us who have the privilege of serving you. I invite you to send your comments, questions or concerns to me at dhpratt@fundboardchair.com.
Best regards,
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69346x5x2.jpg)
Don Pratt
3
Performance |
LIVESTRONG Portfolios | ||||||
Total Returns as of July 31, 2010 | ||||||
Average Annual Returns | ||||||
Ticker | Since | Inception | ||||
Symbol | 1 year | 5 years | Inception | Date | ||
LIVESTRONG Income Portfolio | ||||||
Investor Class | ARTOX | 10.15% | 3.26% | 4.12% | 8/31/04 | |
Russell 3000 Index | — | 14.82% | 0.05% | 2.65% | — | |
Barclays Capital U.S. | ||||||
Aggregate Bond Index(1) | — | 8.91% | 5.96% | 5.51% | — | |
Citigroup US Broad | ||||||
Investment-Grade Bond Index | — | 8.63% | 6.17% | 5.71% | — | |
Institutional Class | ATTIX | 10.37% | 3.47% | 4.32% | 8/31/04 | |
A Class(2) | ARTAX | 8/31/04 | ||||
No sales charge* | 9.87% | 3.02% | 3.86% | |||
With sales charge* | 3.57% | 1.81% | 2.83% | |||
C Class | ATTCX | 3/1/10 | ||||
No sales charge* | — | — | 1.51%(3) | |||
With sales charge* | — | — | 0.51%(3) | |||
R Class | ARSRX | 9.61% | 2.75% | 3.59% | 8/31/04 | |
*Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a | ||||||
5.75% maximum initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed | ||||||
within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance | ||||||
information net of maximum sales charges in all cases where charges could be applied. | ||||||
(1) | In January of 2010, the fund’s 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. | ||||||
(2) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance prior to that | |||||
date has been adjusted to reflect this charge. | ||||||
(3) | Total returns less than one year are not annualized. |
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 July 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 July 31, 2010 | ||||||
Average Annual Returns | ||||||
Ticker | Since | Inception | ||||
Symbol | 1 year | 5 years | Inception | Date | ||
LIVESTRONG 2015 Portfolio | ||||||
Investor Class | ARFIX | 11.00% | 3.43% | 4.75% | 8/31/04 | |
Russell 3000 Index | — | 14.82% | 0.05% | 2.65% | — | |
Barclays Capital U.S. | ||||||
Aggregate Bond Index(1) | — | 8.91% | 5.96% | 5.51% | — | |
Citigroup US Broad | ||||||
Investment-Grade Bond Index | — | 8.63% | 6.17% | 5.71% | — | |
Institutional Class | ARNIX | 11.20% | 3.65% | 4.96% | 8/31/04 | |
A Class(2) | ARFAX | 8/31/04 | ||||
No sales charge* | 10.73% | 3.19% | 4.50% | |||
With sales charge* | 4.38% | 1.97% | 3.46% | |||
C Class | AFNCX | 3/1/10 | ||||
No sales charge* | — | — | 1.61%(3) | |||
With sales charge* | — | — | 0.61%(3) | |||
R Class | ARFRX | 10.47% | 2.93% | 4.23% | 8/31/04 | |
*Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a | ||||||
5.75% maximum initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed | ||||||
within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance | ||||||
information net of maximum sales charges in all cases where charges could be applied. | ||||||
(1) | In January of 2010, the fund’s 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. | ||||||
(2) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance prior to that | |||||
date has been adjusted to reflect this charge. | ||||||
(3) | Total returns less than one year are not annualized. |
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 July 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 July 31, 2010 | |||||
Average | |||||
Annual Returns | |||||
Ticker | Since | Inception | |||
Symbol | 1 year | Inception | Date | ||
LIVESTRONG 2020 Portfolio | |||||
Investor Class | ARBVX | 11.69% | -1.84% | 5/30/08 | |
Russell 3000 Index | — | 14.82% | -8.05% | — | |
Barclays Capital U.S. | |||||
Aggregate Bond Index(1) | — | 8.91% | 7.63% | — | |
Citigroup US Broad | |||||
Investment-Grade Bond Index | — | 8.63% | 7.96% | — | |
Institutional Class | ARBSX | 11.90% | -1.65% | 5/30/08 | |
A Class(2) | ARBMX | 5/30/08 | |||
No sales charge* | 11.43% | -2.11% | |||
With sales charge* | 4.97% | -4.75% | |||
C Class | ARNCX | 3/1/10 | |||
No sales charge* | — | 1.54%(3) | |||
With sales charge* | — | 0.54%(3) | |||
R Class | ARBRX | 11.17% | -2.34% | 5/30/08 | |
*Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a | |||||
5.75% maximum initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed | |||||
within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance | |||||
information net of maximum sales charges in all cases where charges could be applied. | |||||
(1) | In January of 2010, the fund’s 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. | |||||
(2) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance prior to that | ||||
date has been adjusted to reflect this charge. | |||||
(3) | Total returns less than one year are not annualized. |
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 July 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 July 31, 2010 | ||||||
Average Annual Returns | ||||||
Ticker | Since | Inception | ||||
Symbol | 1 year | 5 years | Inception | Date | ||
LIVESTRONG 2025 Portfolio | ||||||
Investor Class | ARWIX | 12.19% | 3.15% | 4.89% | 8/31/04 | |
Russell 3000 Index | — | 14.82% | 0.05% | 2.65% | — | |
Barclays Capital U.S. | ||||||
Aggregate Bond Index(1) | — | 8.91% | 5.96% | 5.51% | — | |
Citigroup US Broad | ||||||
Investment-Grade Bond Index | — | 8.63% | 6.17% | 5.71% | — | |
Institutional Class | ARWFX | 12.40% | 3.36% | 5.09% | 8/31/04 | |
A Class(2) | ARWAX | 8/31/04 | ||||
No sales charge* | 12.03% | 2.91% | 4.64% | |||
With sales charge* | 5.63% | 1.70% | 3.59% | |||
C Class | ARWCX | 3/1/10 | ||||
No sales charge* | — | — | 1.51%(3) | |||
With sales charge* | — | — | 0.51%(3) | |||
R Class | ARWRX | 11.66% | 2.63% | 4.37% | 8/31/04 | |
*Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a | ||||||
5.75% maximum initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed | ||||||
within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance | ||||||
information net of maximum sales charges in all cases where charges could be applied. | ||||||
(1) | In January of 2010, the fund’s 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. | ||||||
(2) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance prior to that | |||||
date has been adjusted to reflect this charge. | ||||||
(3) | Total returns less than one year are not annualized. |
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 July 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 July 31, 2010 | |||||
Average | |||||
Annual Returns | |||||
Ticker | Since | Inception | |||
Symbol | 1 year | Inception | Date | ||
LIVESTRONG 2030 Portfolio | |||||
Investor Class | ARCVX | 12.90% | -3.81% | 5/30/08 | |
Russell 3000 Index | — | 14.82% | -8.05% | — | |
Barclays Capital U.S. | |||||
Aggregate Bond Index(1) | — | 8.91% | 7.63% | — | |
Citigroup US Broad | |||||
Investment-Grade Bond Index | — | 8.63% | 7.96% | — | |
Institutional Class | ARCSX | 13.11% | -3.62% | 5/30/08 | |
A Class(2) | ARCMX | 5/30/08 | |||
No sales charge* | 12.51% | -4.08% | |||
With sales charge* | 6.04% | -6.67% | |||
C Class | ARWOX | 3/1/10 | |||
No sales charge* | — | 1.36%(3) | |||
With sales charge* | — | 0.36%(3) | |||
R Class | ARCRX | 12.24% | -4.31% | 5/30/08 | |
*Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a | |||||
5.75% maximum initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed | |||||
within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance | |||||
information net of maximum sales charges in all cases where charges could be applied. | |||||
(1) | In January of 2010, the fund’s 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. | |||||
(2) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance prior to that | ||||
date has been adjusted to reflect this charge. | |||||
(3) | Total returns less than one year are not annualized. |
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 July 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 | ||||||
Total Returns as of July 31, 2010 | ||||||
Average Annual Returns | ||||||
Ticker | Since | Inception | ||||
Symbol | 1 year | 5 years | Inception | Date | ||
LIVESTRONG 2035 Portfolio | ||||||
Investor Class | ARYIX | 13.58% | 2.68% | 4.82% | 8/31/04 | |
Russell 3000 Index | — | 14.82% | 0.05% | 2.65% | — | |
Barclays Capital U.S. | ||||||
Aggregate Bond Index(1) | — | 8.91% | 5.96% | 5.51% | — | |
Citigroup US Broad | ||||||
Investment-Grade Bond Index | — | 8.63% | 6.17% | 5.71% | — | |
Institutional Class | ARLIX | 13.68% | 2.87% | 5.02% | 8/31/04 | |
A Class(2) | ARYAX | 8/31/04 | ||||
No sales charge* | 13.21% | 2.41% | 4.55% | |||
With sales charge* | 6.73% | 1.19% | 3.51% | |||
C Class | ARLCX | 3/1/10 | ||||
No sales charge* | — | — | 1.21%(3) | |||
With sales charge* | — | — | 0.21%(3) | |||
R Class | ARYRX | 12.93% | 2.17% | 4.30% | 8/31/04 | |
*Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a | ||||||
5.75% maximum initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed | ||||||
within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance | ||||||
information net of maximum sales charges in all cases where charges could be applied. | ||||||
(1) | In January of 2010, the fund’s 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. | ||||||
(2) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance prior to that | |||||
date has been adjusted to reflect this charge. | ||||||
(3) | Total returns less than one year are not annualized. |
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 July 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.
9
LIVESTRONG Portfolios | |||||
Total Returns as of July 31, 2010 | |||||
Average | |||||
Annual Returns | |||||
Ticker | Since | Inception | |||
Symbol | 1 year | Inception | Date | ||
LIVESTRONG 2040 Portfolio | |||||
Investor Class | ARDVX | 13.80% | -5.08% | 5/30/08 | |
Russell 3000 Index | — | 14.82% | -8.05% | — | |
Barclays Capital U.S. | |||||
Aggregate Bond Index(1) | — | 8.91% | 7.63% | — | |
Citigroup US Broad | |||||
Investment-Grade Bond Index | — | 8.63% | 7.96% | — | |
Institutional Class | ARDSX | 14.16% | -4.89% | 5/30/08 | |
A Class(2) | ARDMX | 5/30/08 | |||
No sales charge* | 13.68% | -5.30% | |||
With sales charge* | 7.17% | -7.85% | |||
C Class | ARNOX | 3/1/10 | |||
No sales charge* | — | 0.93%(3) | |||
With sales charge* | — | -0.07%(3) | |||
R Class | ARDRX | 13.28% | -5.57% | 5/30/08 | |
*Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a | |||||
5.75% maximum initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed | |||||
within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance | |||||
information net of maximum sales charges in all cases where charges could be applied. | |||||
(1) | In January of 2010, the fund’s 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. | |||||
(2) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance prior to that | ||||
date has been adjusted to reflect this charge. | |||||
(3) | Total returns less than one year are not annualized. |
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 July 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.
10
LIVESTRONG Portfolios | ||||||
Total Returns as of July 31, 2010 | ||||||
Average Annual Returns | ||||||
Ticker | Since | Inception | ||||
Symbol | 1 year | 5 years | Inception | Date | ||
LIVESTRONG 2045 Portfolio | ||||||
Investor Class | AROIX | 14.16% | 2.29% | 4.65% | 8/31/04 | |
Russell 3000 Index | — | 14.82% | 0.05% | 2.65% | — | |
Barclays Capital U.S. | ||||||
Aggregate Bond Index(1) | — | 8.91% | 5.96% | 5.51% | — | |
Citigroup US Broad | ||||||
Investment-Grade Bond Index | — | 8.63% | 6.17% | 5.71% | — | |
Institutional Class | AOOIX | 14.48% | 2.49% | 4.87% | 8/31/04 | |
A Class(2) | AROAX | 8/31/04 | ||||
No sales charge* | 13.90% | 2.03% | 4.38% | |||
With sales charge* | 7.40% | 0.84% | 3.35% | |||
C Class | AROCX | 3/1/10 | ||||
No sales charge* | — | — | 1.03%(3) | |||
With sales charge* | — | — | 0.03%(3) | |||
R Class | ARORX | 13.63% | 1.77% | 4.13% | 8/31/04 | |
*Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a | ||||||
5.75% maximum initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed | ||||||
within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance | ||||||
information net of maximum sales charges in all cases where charges could be applied. | ||||||
(1) | In January of 2010, the fund’s 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. | ||||||
(2) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance prior to that | |||||
date has been adjusted to reflect this charge. | ||||||
(3) | Total returns less than one year are not annualized. |
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 July 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.
11
LIVESTRONG Portfolios | |||||
Total Returns as of July 31, 2010 | |||||
Average | |||||
Annual Returns | |||||
Ticker | Since | Inception | |||
Symbol | 1 year | Inception | Date | ||
LIVESTRONG 2050 Portfolio | |||||
Investor Class | ARFVX | 14.33% | -6.61% | 5/30/08 | |
Russell 3000 Index | — | 14.82% | -8.05% | — | |
Barclays Capital U.S. | |||||
Aggregate Bond Index(1) | — | 8.91% | 7.63% | — | |
Citigroup US Broad | |||||
Investment-Grade Bond Index | — | 8.63% | 7.96% | — | |
Institutional Class | ARFSX | 14.54% | -6.42% | 5/30/08 | |
A Class(2) | ARFMX | 5/30/08 | |||
No sales charge* | 14.06% | -6.83% | |||
With sales charge* | 7.57% | -9.33% | |||
C Class | ARFDX | 3/1/10 | |||
No sales charge* | — | 0.84%(3) | |||
With sales charge* | — | -0.16%(3) | |||
R Class | ARFWX | 13.79% | -7.05% | 5/30/08 | |
*Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a | |||||
5.75% maximum initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed | |||||
within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance | |||||
information net of maximum sales charges in all cases where charges could be applied. | |||||
(1) | In January of 2010, the fund’s 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. | |||||
(2) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance prior to that | ||||
date has been adjusted to reflect this charge. | |||||
(3) | Total returns less than one year are not annualized. |
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 July 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.
12
LIVESTRONG Portfolios
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69346x15x1.jpg)
*From 8/31/04, the Investor Class’s inception date. Not annualized.
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69346x15x2.jpg)
*From 8/31/04, the Investor Class’s inception date. Not annualized.
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
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69346x16x1.jpg)
*From 5/30/08, the Investor Class’s inception date. Not annualized.
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69346x16x2.jpg)
*From 8/31/04, the Investor Class’s inception date. Not annualized.
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
LIVESTRONG Portfolios
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69346x17x1.jpg)
*From 5/30/08, the Investor Class’s inception date. Not annualized.
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69346x17x2.jpg)
*From 8/31/04, the Investor Class’s inception date. Not annualized.
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.
15
LIVESTRONG Portfolios
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69346x18x1.jpg)
*From 5/30/08, the Investor Class’s inception date. Not annualized.
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69346x18x2.jpg)
*From 8/31/04, the Investor Class’s inception date. Not annualized.
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.
16
LIVESTRONG Portfolios
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69346x19x1.jpg)
*From 5/30/08, the Investor Class’s inception date. Not annualized.
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.
17
LIVESTRONG Portfolios
Total Annual Fund Operating Expenses | |||||
Investor Class | Institutional Class | A Class | C Class | R Class | |
LIVESTRONG Income Portfolio | 0.77% | 0.57% | 1.02% | 1.77% | 1.27% |
LIVESTRONG 2015 Portfolio | 0.80% | 0.60% | 1.05% | 1.80% | 1.30% |
LIVESTRONG 2020 Portfolio | 0.83% | 0.63% | 1.08% | 1.83% | 1.33% |
LIVESTRONG 2025 Portfolio | 0.86% | 0.66% | 1.11% | 1.86% | 1.36% |
LIVESTRONG 2030 Portfolio | 0.89% | 0.69% | 1.14% | 1.89% | 1.39% |
LIVESTRONG 2035 Portfolio | 0.91% | 0.71% | 1.16% | 1.91% | 1.41% |
LIVESTRONG 2040 Portfolio | 0.94% | 0.74% | 1.19% | 1.94% | 1.44% |
LIVESTRONG 2045 Portfolio | 0.95% | 0.75% | 1.20% | 1.95% | 1.45% |
LIVESTRONG 2050 Portfolio | 0.96% | 0.76% | 1.21% | 1.96% | 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.
18
Portfolio Commentary |
LIVESTRONG Portfolios
Portfolio Managers: Enrique Chang, Scott Wittman, Rich Weiss, and Irina Torelli
In May 2010, Richard Weiss joined the portfolio management team for LIVESTRONG Portfolios. Mr. Weiss is a veteran investment professional with 26 years of experience, most recently as chief investment officer for City National Bank in California.
Performance Summary
Each of the nine LIVESTRONG Portfolios advanced for the fiscal year ended July 31, 2010, with returns ranging from 10.15%* for LIVESTRONG Income Portfolio to 14.33% for LIVESTRONG 2050 Portfolio (see pages 4–17 for more detailed performance information). The gains for the 12-month period reflected positive performance across all asset classes represented in the Portfolios.
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
U.S. stocks posted double-digit gains for the 12 months ended July 31, 2010, thanks largely to improving economic conditions and unexpectedly strong corporate earnings. As the period began, the U.S. economy was showing signs of recovery following a sharp downturn in late 2008 and early 2009. Led by improving results in manufacturing activity, housing, and consumer spending, the economy posted positive growth in the third and fourth quar ters of 2009 after four consecutive quarters of declining output. By the first quarter of 2010, jobs data turned positive, providing further evidence of a burgeoning economic recovery.
In addition, corporate profits consistently exceeded expectations as many companies implemented stringent cost-management programs that helped boost profit margins. Rising demand for delayed big-ticket purchases, such as cars and appliances, also contributed to stronger earnings. As a result, stocks rose steadily for the first nine months of the period, with the major equity indices advancing by about 25%.
Market conditions changed abruptly in the last three months of the period as persistent worries about sovereign debt problems in Europe and questions about the sustainability of the domestic economic recovery (validated to some degree by weaker economic data) weighed on investor confidence. With these headwinds, the equity market peaked in late April and then reversed direction in May and June, falling sharply before bouncing back somewhat in July.
Although stocks gave back some of their gains toward the end of the period, the broad market indices returned approximately 15% overall for the 12 months. Mid- and small-cap stocks posted the best returns (see the table on page 20), outpacing large-cap shares, while value stocks outperformed growth-oriented issues across all market capitalizations.
*All fund returns referenced in this commentary are for Investor Class shares.
19
LIVESTRONG Portfolios | ||||
Market Index Total Returns | ||||
For the 12 months ended July 31, 2010 | ||||
U.S. Stocks | U.S. Fixed Income | |||
Russell 1000 Index (Large-Cap) | 14.51% | Barclays Capital U.S. | ||
Russell Midcap Index | 23.21% | Aggregate Bond Index | 8.91% | |
Russell 2000 Index (Small-Cap) | 18.43% | Barclays Capital U.S. Corporate | ||
International Stocks | High-Yield Bond Index | 23.74% | ||
MSCI EAFE (Europe, Australasia, Far East) Index | 6.26% | International Bonds | ||
MSCI EM (Emerging Markets) Index | 19.92% | Citigroup Non-US World | ||
Government Bond Index | 4.20% |
International equity markets also advanced during the 12-month period, but they lagged the domestic market. Although foreign stocks were buoyed by better economic growth worldwide, they suffered more substantial declines in the latter half of the period in response to the sovereign debt crisis in Europe. Emerging markets were the top performers, gaining 20% as a group as these countries were less impacted by the debt turmoil. Among developed markets, countries along the Pacific Rim produced the best returns, with the significant exception of Japan, which ended the period little changed. European markets generally performed in line with the index as strong results in Scandinavian markets offset declines in countries facing the most significant fiscal challenges.
Bond Market Review
U.S. bonds generated solid gains for the 12-month period. The improving economic environment and robust corporate profit growth provided a lift to corporate bonds, which were among the best performers in the fixed-income market. In particular, corporate high-yield securities returned more than 20% for the period.
Commercial mortgage-backed securities also produced very strong returns as credit conditions in the commercial property sector improved markedly. In contrast, residential mortgage-backed securities lagged as delinquencies and foreclosures continued to increase and the Federal Reserve ended its program of buying mortgage securities to support the housing market.
Treasury bonds were the weakest overall performers as better economic conditions and increased issuance to fund a growing national deficit weighed on this segment of the bond market. However, Treasury securities outperformed during the last few months of the period amid a flight to quality as investors grew increasingly concerned about European debt issues and a slowdown in the pace of economic recovery.
20
LIVESTRONG Portfolios
Underlying Fund Allocations(1) as a % of net assets as of July 31, 2010 | ||||||
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | ||
Income | 2015 | 2020 | 2025 | 2030 | ||
Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | ||
Equity | ||||||
NT Equity | ||||||
Growth Fund | 13.0% | 12.8% | 12.2% | 12.5% | 12.4% | |
NT Growth Fund | 6.5% | 7.8% | 8.7% | 10.5% | 12.4% | |
NT Large Company | ||||||
Value Fund | 11.0% | 11.3% | 11.3% | 11.7% | 12.5% | |
NT Mid Cap | ||||||
Value Fund | 4.1% | 4.8% | 5.4% | 5.3% | 5.2% | |
NT Small | ||||||
Company Fund | 2.0% | 2.1% | 2.3% | 3.3% | 4.3% | |
NT VistaSM Fund | 2.6% | 3.6% | 4.6% | 5.0% | 5.3% | |
Real Estate Fund | 1.1% | 1.4% | 1.6% | 1.8% | 2.0% | |
NT Emerging | ||||||
Markets Fund | — | 1.1% | 2.3% | 2.8% | 3.3% | |
NT International | ||||||
Growth Fund | 5.0% | 5.8% | 6.9% | 8.2% | 9.5% | |
Total Equity | 45.3% | 50.7% | 55.3% | 61.1% | 66.9% | |
Fixed Income | ||||||
High-Yield Fund | 3.9% | 3.7% | 3.4% | 3.1% | 2.8% | |
Inflation-Adjusted | ||||||
Bond Fund | 7.4% | 7.1% | 7.0% | 6.3% | 5.6% | |
NT Diversified | ||||||
Bond Fund | 26.6% | 25.3% | 24.5% | 22.1% | 19.7% | |
International | ||||||
Bond Fund | 7.0% | 6.0% | 4.9% | 2.5% | — | |
Total Fixed Income | 44.9% | 42.1% | 39.8% | 34.0% | 28.1% | |
Premium Money | ||||||
Market Fund | 9.8% | 7.2% | 4.9% | 4.9% | 5.0% | |
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. |
21
LIVESTRONG Portfolios
Underlying Fund Allocations(1) as a % of net assets as of July 31, 2010 | |||||
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | ||
2035 | 2040 | 2045 | 2050 | ||
Portfolio | Portfolio | Portfolio | Portfolio | ||
Equity | |||||
NT Equity Growth Fund | 13.5% | 14.4% | 14.7% | 15.2% | |
NT Growth Fund | 13.5% | 14.4% | 14.7% | 15.2% | |
NT Large Company Value Fund | 13.5% | 14.5% | 15.0% | 15.5% | |
NT Mid Cap Value Fund | 6.2% | 7.2% | 7.3% | 7.5% | |
NT Small Company Fund | 4.1% | 4.0% | 4.5% | 5.0% | |
NT VistaSM Fund | 6.3% | 7.3% | 7.3% | 7.5% | |
Real Estate Fund | 2.3% | 2.5% | 2.8% | 3.0% | |
NT Emerging Markets Fund | 4.2% | 5.3% | 6.0% | 6.5% | |
NT International Growth Fund | 9.7% | 10.3% | 9.9% | 9.5% | |
Total Equity | 73.3% | 79.9% | 82.2% | 84.9% | |
Fixed Income | |||||
High-Yield Fund | 2.4% | 2.0% | 1.8% | 1.5% | |
Inflation-Adjusted Bond Fund | 4.8% | 4.0% | 3.5% | 3.0% | |
NT Diversified Bond Fund | 17.0% | 14.1% | 12.5% | 10.6% | |
Total Fixed Income | 24.2% | 20.1% | 17.8% | 15.1% | |
Premium Money Market Fund | 2.5% | — | — | — | |
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. |
International fixed-income markets posted modest gains for the 12 months, trailing domestic bond returns. Global interest rates were relatively stable for much of the period, but foreign bond markets rallied over the last few months amid the flight to quality brought on by the European debt crisis. However, the debt upheaval in Europe led to a steep decline in the euro, including a sharp drop versus the U.S. dollar, erasing the gains in European bonds for U.S. investors. In contrast, safe-haven currencies such as the Japanese yen rallied against the U.S. dollar during the period.
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 21–22 for the specific underlying fund allocations for each LIVESTRONG Portfolio at period end.) 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. The principal value of the investment is not guaranteed at any time, including at the target date.
22
LIVESTRONG Portfolios
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 stock funds and increasing the allocation to bond and money market funds. By the time each fund reaches its target year, its target asset mix will become fixed and will match that of LIVESTRONG Income Portfolio, which seeks current income with capital appreciation as a secondary objective.
Portfolio Performance
Within LIVESTRONG Portfolios, every equity fund delivered double-digit gains for the 12-month period. By far, the best performer was the Real Estate Fund, which gained more than 50% as economic and credit conditions improved, allowing real estate investment trusts to strengthen their balance sheets and sustain occupancy levels. The NT Mid Cap Value and NT Small Company funds also fared well, with each returning about 20% for the 12 months. The NT Emerging Markets Fund was another solid performer, reflecting the robust returns in emerging markets. The laggards included the NT International Growth Fund and the NT Large Company Value Fund, both of which returned just over 10%.
The leading performer among LIVESTRONG Portfolios’ fixed-income components was the High-Yield Fund, which returned 19% for the reporting period as demand for high-yield corporate bonds increased markedly in an improving economic environment. The Inflation-Adjusted Bond Fund posted a return in line with the broad bond market, while the International Bond Fund posted a more modest gain for the 12-month period.
The NT Diversified Bond Fund, the largest fixed-income component in each LIVESTRONG Portfolio, performed in line with the broad bond market indices. Sector allocation, most notably an overweight position in corporate bonds and an underweight position in Treasury bonds, contributed positively to performance during the 12-month period. However, NT Diversified Bond’s exposure to euro-denominated securities and positioning for a flatter yield curve weighed on results.
Outlook
We appear to be facing what some have called a “square root” economic recovery—after a sharp decline in late 2008 and early 2009, the economy enjoyed a robust but brief period of growth, and now we are experiencing a plateau of modest but steady economic activity. The current level of growth is sufficient to keep the economy from sliding back into recession, but not enough to reverse or undo much of the damage caused by the previous downturn.
Additionally, a substantial debt overhang further clouds the global economic outlook. Europe remains mired in a crisis of confidence as soaring budget deficits in several countries weigh on their sovereign debt. In the U.S., many state governments are struggling to balance their budgets amid declining tax revenues, while consumer debt levels remain near record highs. The inevitable continuation of deleveraging is likely to constrain growth going forward.
We continue to believe that broad-based diversification among asset classes and within asset classes is essential to long-term investing success.
23
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 February 1, 2010 to July 31, 2010 (except as noted).
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.
24
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 | 2/1/10 – | Expense | 2/1/10 – | Expense | ||
2/1/10 | 7/31/10 | 7/31/10 | Ratio(1) | 7/31/10 | Ratio(2) | ||
LIVESTRONG Income Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,038.40 | $1.06 | 0.21% | $3.84 | 0.76% | |
Institutional Class | $1,000 | $1,039.40 | $0.05 | 0.01% | $2.83 | 0.56% | |
A Class | $1,000 | $1,037.10 | $2.32 | 0.46% | $5.10 | 1.01% | |
C Class | $1,000 | $1015.10(3) | $5.08(4) | 1.21% | $7.38(4) | 1.76% | |
R Class | $1,000 | $1,035.90 | $3.58 | 0.71% | $6.36 | 1.26% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,023.75 | $1.05 | 0.21% | $3.81 | 0.76% | |
Institutional Class | $1,000 | $1,024.74 | $0.05 | 0.01% | $2.81 | 0.56% | |
A Class | $1,000 | $1,022.51 | $2.31 | 0.46% | $5.06 | 1.01% | |
C Class | $1,000 | $1018.79(5) | $6.06(5) | 1.21% | $8.80(5) | 1.76% | |
R Class | $1,000 | $1,021.27 | $3.56 | 0.71% | $6.31 | 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 181, 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) | Ending account value based on actual return from March 1, 2010 (commencement of sale) through July 31, 2010. | ||||||
(4) | 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 152, the number of days in the period from March 1, 2010 (commencement of sale) through July 31, 2010, divided by 365, to | |||||||
reflect the period. Had the class been available for the full period, the expenses paid during the period would have been higher. | |||||||
(5) | Ending account value and expenses paid during period assumes the class had been available throughout the entire period and are calculated | ||||||
using the class’s annualized expense ratio listed in the table above. |
25
Effective | |||||||
Expenses | Expenses | ||||||
Beginning | Ending | Paid During | Paid During | Effective | |||
Account | Account | Period(1) | Annualized | Period(2) | Annualized | ||
Value | Value | 2/1/10 – | Expense | 2/1/10 – | Expense | ||
2/1/10 | 7/31/10 | 7/31/10 | Ratio(1) | 7/31/10 | Ratio(2) | ||
LIVESTRONG 2015 Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,041.60 | $1.06 | 0.21% | $4.00 | 0.79% | |
Institutional Class | $1,000 | $1,042.60 | $0.05 | 0.01% | $2.99 | 0.59% | |
A Class | $1,000 | $1,040.70 | $2.33 | 0.46% | $5.26 | 1.04% | |
C Class | $1,000 | $1016.10 (3) | $5.08(4) | 1.21% | $7.51(4) | 1.79% | |
R Class | $1,000 | $1,038.70 | $3.59 | 0.71% | $6.52 | 1.29% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,023.75 | $1.05 | 0.21% | $3.96 | 0.79% | |
Institutional Class | $1,000 | $1,024.74 | $0.05 | 0.01% | $2.96 | 0.59% | |
A Class | $1,000 | $1,022.51 | $2.31 | 0.46% | $5.21 | 1.04% | |
C Class | $1,000 | $1018.79(5) | $6.06(5) | 1.21% | $8.95(5) | 1.79% | |
R Class | $1,000 | $1,021.27 | $3.56 | 0.71% | $6.46 | 1.29% | |
LIVESTRONG 2020 Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,043.80 | $1.06 | 0.21% | $4.16 | 0.82% | |
Institutional Class | $1,000 | $1,046.10 | $0.05 | 0.01% | $3.15 | 0.62% | |
A Class | $1,000 | $1,042.70 | $2.33 | 0.46% | $5.42 | 1.07% | |
C Class | $1,000 | $1015.40(3) | $5.08(4) | 1.21% | $7.64(4) | 1.82% | |
R Class | $1,000 | $1,041.60 | $3.59 | 0.71% | $6.68 | 1.32% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,023.75 | $1.05 | 0.21% | $4.11 | 0.82% | |
Institutional Class | $1,000 | $1,024.74 | $0.05 | 0.01% | $3.11 | 0.62% | |
A Class | $1,000 | $1,022.51 | $2.31 | 0.46% | $5.36 | 1.07% | |
C Class | $1,000 | $1018.79(5) | $6.06(5) | 1.21% | $9.10(5) | 1.82% | |
R Class | $1,000 | $1,021.27 | $3.56 | 0.71% | $6.61 | 1.32% | |
(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 181, 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) | Ending account value based on actual return from March 1, 2010 (commencement of sale) through July 31, 2010. | ||||||
(4) | 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 152, the number of days in the period from March 1, 2010 (commencement of sale) through July 31, 2010, divided by 365, to | |||||||
reflect the period. Had the class been available for the full period, the expenses paid during the period would have been higher. | |||||||
(5) | Ending account value and expenses paid during period assumes the class had been available throughout the entire period and are calculated | ||||||
using the class’s annualized expense ratio listed in the table above. |
26
Effective | |||||||
Expenses | Expenses | ||||||
Beginning | Ending | Paid During | Paid During | Effective | |||
Account | Account | Period(1) | Annualized | Period(2) | Annualized | ||
Value | Value | 2/1/10 – | Expense | 2/1/10 – | Expense | ||
2/1/10 | 7/31/10 | 7/31/10 | Ratio(1) | 7/31/10 | Ratio(2) | ||
LIVESTRONG 2025 Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,046.60 | $1.07 | 0.21% | $4.26 | 0.84% | |
Institutional Class | $1,000 | $1,047.60 | $0.05 | 0.01% | $3.25 | 0.64% | |
A Class | $1,000 | $1,045.60 | $2.33 | 0.46% | $5.53 | 1.09% | |
C Class | $1,000 | $1015.10 (3) | $5.08(4) | 1.21% | $7.72(4) | 1.84% | |
R Class | $1,000 | $1,043.70 | $3.60 | 0.71% | $6.79 | 1.34% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,023.75 | $1.05 | 0.21% | $4.21 | 0.84% | |
Institutional Class | $1,000 | $1,024.74 | $0.05 | 0.01% | $3.21 | 0.64% | |
A Class | $1,000 | $1,022.51 | $2.31 | 0.46% | $5.46 | 1.09% | |
C Class | $1,000 | $1018.79(5) | $6.06(5) | 1.21% | $9.20(5) | 1.84% | |
R Class | $1,000 | $1,021.27 | $3.56 | 0.71% | $6.71 | 1.34% | |
LIVESTRONG 2030 Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,048.00 | $1.07 | 0.21% | $4.42 | 0.87% | |
Institutional Class | $1,000 | $1,049.20 | $0.05 | 0.01% | $3.40 | 0.67% | |
A Class | $1,000 | $1,046.90 | $2.33 | 0.46% | $5.68 | 1.12% | |
C Class | $1,000 | $1013.60(3) | $5.07(4) | 1.21% | $7.84(4) | 1.87% | |
R Class | $1,000 | $1,045.70 | $3.60 | 0.71% | $6.95 | 1.37% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,023.75 | $1.05 | 0.21% | $4.36 | 0.87% | |
Institutional Class | $1,000 | $1,024.74 | $0.05 | 0.01% | $3.36 | 0.67% | |
A Class | $1,000 | $1,022.51 | $2.31 | 0.46% | $5.61 | 1.12% | |
C Class | $1,000 | $1018.79(5) | $6.06(5) | 1.21% | $9.35(5) | 1.87% | |
R Class | $1,000 | $1,021.27 | $3.56 | 0.71% | $6.85 | 1.37% | |
(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 181, 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) | Ending account value based on actual return from March 1, 2010 (commencement of sale) through July 31, 2010. | ||||||
(4) | 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 152, the number of days in the period from March 1, 2010 (commencement of sale) through July 31, 2010, divided by 365, to | |||||||
reflect the period. Had the class been available for the full period, the expenses paid during the period would have been higher. | |||||||
(5) | Ending account value and expenses paid during period assumes the class had been available throughout the entire period and are calculated | ||||||
using the class’s annualized expense ratio listed in the table above. |
27
Effective | |||||||
Expenses | Expenses | ||||||
Beginning | Ending | Paid During | Paid During | Effective | |||
Account | Account | Period(1) | Annualized | Period(2) | Annualized | ||
Value | Value | 2/1/10 – | Expense | 2/1/10 – | Expense | ||
2/1/10 | 7/31/10 | 7/31/10 | Ratio(1) | 7/31/10 | Ratio(2) | ||
LIVESTRONG 2035 Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,051.00 | $1.07 | 0.21% | $4.58 | 0.90% | |
Institutional Class | $1,000 | $1,051.00 | $0.05 | 0.01% | $3.56 | 0.70% | |
A Class | $1,000 | $1,049.10 | $2.34 | 0.46% | $5.84 | 1.15% | |
C Class | $1,000 | $1,012.10(3) | $5.07(4) | 1.21% | $7.96(4) | 1.90% | |
R Class | $1,000 | $1,048.10 | $3.61 | 0.71% | $7.11 | 1.40% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,023.75 | $1.05 | 0.21% | $4.51 | 0.90% | |
Institutional Class | $1,000 | $1,024.74 | $0.05 | 0.01% | $3.51 | 0.70% | |
A Class | $1,000 | $1,022.51 | $2.31 | 0.46% | $5.76 | 1.15% | |
C Class | $1,000 | $1,018.79(5) | $6.06(5) | 1.21% | $9.49(5) | 1.90% | |
R Class | $1,000 | $1,021.27 | $3.56 | 0.71% | $7.00 | 1.40% | |
LIVESTRONG 2040 Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,050.60 | $1.07 | 0.21% | $4.73 | 0.93% | |
Institutional Class | $1,000 | $1,051.80 | $0.05 | 0.01% | $3.71 | 0.73% | |
A Class | $1,000 | $1,049.40 | $2.34 | 0.46% | $6.00 | 1.18% | |
C Class | $1,000 | $1,009.30(3) | $5.06(4) | 1.21% | $8.07(4) | 1.93% | |
R Class | $1,000 | $1,048.30 | $3.61 | 0.71% | $7.26 | 1.43% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,023.75 | $1.05 | 0.21% | $4.66 | 0.93% | |
Institutional Class | $1,000 | $1,024.74 | $0.05 | 0.01% | $3.66 | 0.73% | |
A Class | $1,000 | $1,022.51 | $2.31 | 0.46% | $5.91 | 1.18% | |
C Class | $1,000 | $1,018.79(5) | $6.06(5) | 1.21% | $9.64(5) | 1.93% | |
R Class | $1,000 | $1,021.27 | $3.56 | 0.71% | $7.15 | 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 181, 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) | Ending account value based on actual return from March 1, 2010 (commencement of sale) through July 31, 2010. | ||||||
(4) | 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 152, the number of days in the period from March 1, 2010 (commencement of sale) through July 31, 2010, divided by 365, to | |||||||
reflect the period. Had the class been available for the full period, the expenses paid during the period would have been higher. | |||||||
(5) | Ending account value and expenses paid during period assumes the class had been available throughout the entire period and are calculated | ||||||
using the class’s annualized expense ratio listed in the table above. |
28
Effective | |||||||
Expenses | Expenses | ||||||
Beginning | Ending | Paid During | Paid During | Effective | |||
Account | Account | Period(1) | Annualized | Period(2) | Annualized | ||
Value | Value | 2/1/10 – | Expense | 2/1/10 – | Expense | ||
2/1/10 | 7/31/10 | 7/31/10 | Ratio(1) | 7/31/10 | Ratio(2) | ||
LIVESTRONG 2045 Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,052.50 | $1.07 | 0.21% | $4.78 | 0.94% | |
Institutional Class | $1,000 | $1,053.40 | $0.05 | 0.01% | $3.77 | 0.74% | |
A Class | $1,000 | $1,050.60 | $2.34 | 0.46% | $6.05 | 1.19% | |
C Class | $1,000 | $1,010.30(3) | $5.06(4) | 1.21% | $8.12(4) | 1.94% | |
R Class | $1,000 | $1,049.60 | $3.61 | 0.71% | $7.32 | 1.44% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,023.75 | $1.05 | 0.21% | $4.71 | 0.94% | |
Institutional Class | $1,000 | $1,024.74 | $0.05 | 0.01% | $3.71 | 0.74% | |
A Class | $1,000 | $1,022.51 | $2.31 | 0.46% | $5.96 | 1.19% | |
C Class | $1,000 | $1,018.79(5) | $6.06(5) | 1.21% | $9.69(5) | 1.94% | |
R Class | $1,000 | $1,021.27 | $3.56 | 0.71% | $7.20 | 1.44% | |
LIVESTRONG 2050 Portfolio | |||||||
Actual | |||||||
Investor Class | $1,000 | $1,052.30 | $1.17 | 0.23% | $4.99 | 0.98% | |
Institutional Class | $1,000 | $1,053.50 | $0.15 | 0.03% | $3.97 | 0.78% | |
A Class | $1,000 | $1,051.10 | $2.44 | 0.48% | $6.26 | 1.23% | |
C Class | $1,000 | $1,008.40(3) | $5.10(4) | 1.22% | $8.24(4) | 1.97% | |
R Class | $1,000 | $1,049.80 | $3.71 | 0.73% | $7.52 | 1.48% | |
Hypothetical | |||||||
Investor Class | $1,000 | $1,023.65 | $1.15 | 0.23% | $4.91 | 0.98% | |
Institutional Class | $1,000 | $1,024.65 | $0.15 | 0.03% | $3.91 | 0.78% | |
A Class | $1,000 | $1,022.41 | $2.41 | 0.48% | $6.16 | 1.23% | |
C Class | $1,000 | $1,018.74(5) | $6.11(5) | 1.22% | $9.84(5) | 1.97% | |
R Class | $1,000 | $1,021.17 | $3.66 | 0.73% | $7.40 | 1.48% | |
(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 181, 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) | Ending account value based on actual return from March 1, 2010 (commencement of sale) through July 31, 2010. | ||||||
(4) | 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 152, the number of days in the period from March 1, 2010 (commencement of sale) through July 31, 2010, divided by 365, to | |||||||
reflect the period. Had the class been available for the full period, the expenses paid during the period would have been higher. | |||||||
(5) | Ending account value and expenses paid during period assumes the class had been available throughout the entire period and are calculated | ||||||
using the class’s annualized expense ratio listed in the table above. |
29
Schedule of Investments |
LIVESTRONG Portfolios | ||||||||
JULY 31, 2010 | ||||||||
Shares | Value | Shares | Value | |||||
LIVESTRONG Income Portfolio | LIVESTRONG 2015 Portfolio | |||||||
Mutual Funds(1) — 100.0% | Mutual Funds(1) — 100.0% | |||||||
DOMESTIC EQUITY FUNDS — 40.3% | DOMESTIC EQUITY FUNDS — 43.8% | |||||||
NT Equity Growth Fund | NT Equity Growth Fund | |||||||
Institutional Class | 3,439,712 | $ 28,962,377 | Institutional Class | 7,922,047 | $ 66,703,638 | |||
NT Growth Fund | NT Growth Fund | |||||||
Institutional Class | 1,439,628 | 14,525,843 | Institutional Class | 4,035,942 | 40,722,654 | |||
NT Large Company Value | NT Large Company Value | |||||||
Fund Institutional Class | 3,265,018 | 24,520,284 | Fund Institutional Class | 7,844,148 | 58,909,552 | |||
NT Mid Cap Value Fund | NT Mid Cap Value Fund | |||||||
Institutional Class | 951,588 | 8,992,508 | Institutional Class | 2,651,591 | 25,057,533 | |||
NT Small Company Fund | NT Small Company Fund | |||||||
Institutional Class | 628,454 | 4,531,151 | Institutional Class | 1,503,665 | 10,841,428 | |||
NT Vista Fund | NT Vista Fund | |||||||
Institutional Class | 675,757 | 5,669,601 | Institutional Class | 2,232,357 | 18,729,477 | |||
Real Estate Fund | Real Estate Fund | |||||||
Institutional Class | 140,184 | 2,321,449 | Institutional Class | 419,636 | 6,949,164 | |||
89,523,213 | 227,913,446 | |||||||
DOMESTIC FIXED INCOME FUNDS — 37.9% | DOMESTIC FIXED INCOME FUNDS — 36.1% | |||||||
High-Yield Fund | High-Yield Fund | |||||||
Institutional Class | 1,431,037 | 8,528,981 | Institutional Class | 3,197,121 | 19,054,842 | |||
Inflation-Adjusted Bond | Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 1,402,114 | 16,530,927 | Fund Institutional Class | 3,137,017 | 36,985,431 | |||
NT Diversified Bond Fund | NT Diversified Bond Fund | |||||||
Institutional Class | 5,456,060 | 59,198,249 | Institutional Class | 12,149,820 | 131,825,545 | |||
84,258,157 | 187,865,818 | |||||||
MONEY MARKET FUNDS — 9.8% | MONEY MARKET FUNDS — 7.2% | |||||||
Premium Money Market | Premium Money Market | |||||||
Fund Investor Class | 21,795,946 | 21,795,946 | Fund Investor Class | 37,572,863 | 37,572,863 | |||
INTERNATIONAL FIXED INCOME FUNDS — 7.0% | INTERNATIONAL EQUITY FUNDS — 6.9% | |||||||
International Bond Fund | NT Emerging Markets Fund | |||||||
Institutional Class | 1,097,284 | 15,669,213 | Institutional Class | 589,212 | 5,379,510 | |||
INTERNATIONAL EQUITY FUNDS — 5.0% | NT International Growth | |||||||
NT International Growth | Fund Institutional Class | 3,526,193 | 30,148,953 | |||||
Fund Institutional Class | 1,301,380 | 11,126,801 | 35,528,463 | |||||
TOTAL INVESTMENT | INTERNATIONAL FIXED INCOME FUNDS — 6.0% | |||||||
SECURITIES — 100.0% | International Bond Fund | |||||||
(Cost $198,879,066) | 222,373,330 | Institutional Class | 2,194,532 | 31,337,913 | ||||
OTHER ASSETS AND LIABILITIES(2) | (3,059) | TOTAL INVESTMENT | ||||||
TOTAL NET ASSETS — 100.0% | $222,370,271 | SECURITIES — 100.0% | ||||||
(Cost $483,315,752) | 520,218,503 | |||||||
Notes to Schedule of Investments | OTHER ASSETS AND LIABILITIES(2) | (11,274) | ||||||
(1) | Investments are funds within the American Century Investments | TOTAL NET ASSETS — 100.0% | $520,207,229 | |||||
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. |
30
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 — 46.1% | DOMESTIC EQUITY FUNDS — 50.1% | |||||||
NT Equity Growth Fund | NT Equity Growth Fund | |||||||
Institutional Class | 3,878,540 | $ 32,657,309 | Institutional Class | 10,213,367 | $ 85,996,550 | |||
NT Growth Fund | NT Growth Fund | |||||||
Institutional Class | 2,314,648 | 23,354,798 | Institutional Class | 7,160,830 | 72,252,772 | |||
NT Large Company Value | NT Large Company Value | |||||||
Fund Institutional Class | 4,017,766 | 30,173,425 | Fund Institutional Class | 10,764,674 | 80,842,699 | |||
NT Mid Cap Value Fund | NT Mid Cap Value Fund | |||||||
Institutional Class | 1,539,491 | 14,548,185 | Institutional Class | 3,836,306 | 36,253,096 | |||
NT Small Company Fund | NT Small Company Fund | |||||||
Institutional Class | 845,512 | 6,096,139 | Institutional Class | 3,111,305 | 22,432,510 | |||
NT Vista Fund | NT Vista Fund | |||||||
Institutional Class | 1,458,784 | 12,239,200 | Institutional Class | 4,127,302 | 34,628,066 | |||
Real Estate Fund | Real Estate Fund | |||||||
Institutional Class | 251,633 | 4,167,046 | Institutional Class | 735,902 | 12,186,531 | |||
123,236,102 | 344,592,224 | |||||||
DOMESTIC FIXED INCOME FUNDS — 34.9% | DOMESTIC FIXED INCOME FUNDS — 31.5% | |||||||
High-Yield Fund | High-Yield Fund | |||||||
Institutional Class | 1,539,353 | 9,174,546 | Institutional Class | 3,602,657 | 21,471,837 | |||
Inflation-Adjusted Bond | Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 1,579,190 | 18,618,647 | Fund Institutional Class | 3,661,210 | 43,165,662 | |||
NT Diversified Bond Fund | NT Diversified Bond Fund | |||||||
Institutional Class | 6,041,522 | 65,550,510 | Institutional Class | 14,013,841 | 152,050,171 | |||
93,343,703 | 216,687,670 | |||||||
INTERNATIONAL EQUITY FUNDS — 9.2% | INTERNATIONAL EQUITY FUNDS — 11.0% | |||||||
NT Emerging Markets Fund | NT Emerging Markets Fund | |||||||
Institutional Class | 670,909 | 6,125,402 | Institutional Class | 2,075,983 | 18,953,721 | |||
NT International Growth | NT International Growth | |||||||
Fund Institutional Class | 2,143,671 | 18,328,388 | Fund Institutional Class | 6,602,053 | 56,447,556 | |||
24,453,790 | 75,401,277 | |||||||
INTERNATIONAL FIXED INCOME FUNDS — 4.9% | MONEY MARKET FUNDS — 4.9% | |||||||
International Bond Fund | Premium Money Market | |||||||
Institutional Class | 925,247 | 13,212,522 | Fund Investor Class | 33,884,443 | 33,884,443 | |||
MONEY MARKET FUNDS — 4.9% | INTERNATIONAL FIXED INCOME FUNDS — 2.5% | |||||||
Premium Money Market | International Bond Fund | |||||||
Fund Investor Class | 13,181,772 | 13,181,772 | Institutional Class | 1,205,948 | 17,220,939 | |||
TOTAL INVESTMENT | TOTAL INVESTMENT | |||||||
SECURITIES — 100.0% | SECURITIES — 100.0% | |||||||
(Cost $243,341,295) | 267,427,889 | (Cost $639,787,652) | 687,786,553 | |||||
OTHER ASSETS AND LIABILITIES(2) | (5,411) | OTHER ASSETS AND LIABILITIES(2) | (12,507) | |||||
TOTAL NET ASSETS — 100.0% | $267,422,478 | TOTAL NET ASSETS — 100.0% | $687,774,046 | |||||
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. |
31
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 — 54.1% | DOMESTIC EQUITY FUNDS — 59.4% | |||||||
NT Equity Growth Fund | NT Equity Growth Fund | |||||||
Institutional Class | 3,234,860 | $ 27,237,518 | Institutional Class | 6,994,654 | $ 58,894,990 | |||
NT Growth Fund | NT Growth Fund | |||||||
Institutional Class | 2,696,847 | 27,211,184 | Institutional Class | 5,836,944 | 58,894,767 | |||
NT Large Company Value | NT Large Company Value | |||||||
Fund Institutional Class | 3,655,988 | 27,456,472 | Fund Institutional Class | 7,842,222 | 58,895,088 | |||
NT Mid Cap Value Fund | NT Mid Cap Value Fund | |||||||
Institutional Class | 1,205,850 | 11,395,280 | Institutional Class | 2,889,508 | 27,305,848 | |||
NT Small Company Fund | NT Small Company Fund | |||||||
Institutional Class | 1,297,113 | 9,352,187 | Institutional Class | 2,511,719 | 18,109,495 | |||
NT Vista Fund | NT Vista Fund | |||||||
Institutional Class | 1,380,375 | 11,581,343 | Institutional Class | 3,266,102 | 27,402,595 | |||
Real Estate Fund | Real Estate Fund | |||||||
Institutional Class | 272,490 | 4,512,437 | Institutional Class | 596,089 | 9,871,240 | |||
118,746,421 | 259,374,023 | |||||||
DOMESTIC FIXED INCOME FUNDS — 28.1% | DOMESTIC FIXED INCOME FUNDS — 24.2% | |||||||
High-Yield Fund | High-Yield Fund | |||||||
Institutional Class | 1,028,129 | 6,127,647 | Institutional Class | 1,757,667 | 10,475,696 | |||
Inflation-Adjusted Bond | Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 1,041,190 | 12,275,628 | Fund Institutional Class | 1,785,605 | 21,052,281 | |||
NT Diversified Bond Fund | NT Diversified Bond Fund | |||||||
Institutional Class | 3,980,220 | 43,185,388 | Institutional Class | 6,814,188 | 73,933,936 | |||
61,588,663 | 105,461,913 | |||||||
INTERNATIONAL EQUITY FUNDS — 12.8% | INTERNATIONAL EQUITY FUNDS — 13.9% | |||||||
NT Emerging Markets Fund | NT Emerging Markets Fund | |||||||
Institutional Class | 791,082 | 7,222,577 | Institutional Class | 2,026,730 | 18,504,049 | |||
NT International Growth | NT International Growth | |||||||
Fund Institutional Class | 2,451,952 | 20,964,188 | Fund Institutional Class | 4,945,455 | 42,283,637 | |||
28,186,765 | 60,787,686 | |||||||
MONEY MARKET FUNDS — 5.0% | MONEY MARKET FUNDS — 2.5% | |||||||
Premium Money Market | Premium Money Market | |||||||
Fund Investor Class | 10,887,100 | 10,887,100 | Fund Investor Class | 10,847,681 | 10,847,681 | |||
TOTAL INVESTMENT | TOTAL INVESTMENT | |||||||
SECURITIES — 100.0% | SECURITIES — 100.0% | |||||||
(Cost $197,913,331) | 219,408,949 | (Cost $410,777,860) | 436,471,303 | |||||
OTHER ASSETS AND LIABILITIES(2) | (3,183) | OTHER ASSETS AND LIABILITIES(2) | (5,231) | |||||
TOTAL NET ASSETS — 100.0% | $219,405,766 | TOTAL NET ASSETS — 100.0% | $436,466,072 | |||||
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. |
32
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 — 64.3% | DOMESTIC EQUITY FUNDS — 66.3% | |||||||
NT Equity Growth Fund | NT Equity Growth Fund | |||||||
Institutional Class | 1,964,688 | $ 16,542,675 | Institutional Class | 4,296,331 | $ 36,175,108 | |||
NT Growth Fund | NT Growth Fund | |||||||
Institutional Class | 1,635,666 | 16,503,872 | Institutional Class | 3,585,241 | 36,175,080 | |||
NT Large Company Value | NT Large Company Value | |||||||
Fund Institutional Class | 2,218,801 | 16,663,197 | Fund Institutional Class | 4,898,582 | 36,788,350 | |||
NT Mid Cap Value Fund | NT Mid Cap Value Fund | |||||||
Institutional Class | 872,897 | 8,248,878 | Institutional Class | 1,885,622 | 17,819,126 | |||
NT Small Company Fund | NT Small Company Fund | |||||||
Institutional Class | 633,818 | 4,569,830 | Institutional Class | 1,530,719 | 11,036,485 | |||
NT Vista Fund | NT Vista Fund | |||||||
Institutional Class | 993,260 | 8,333,451 | Institutional Class | 2,129,705 | 17,868,225 | |||
Real Estate Fund | Real Estate Fund | |||||||
Institutional Class | 175,161 | 2,900,673 | Institutional Class | 409,336 | 6,778,601 | |||
73,762,576 | 162,640,975 | |||||||
DOMESTIC FIXED INCOME FUNDS — 20.1% | DOMESTIC FIXED INCOME FUNDS — 17.8% | |||||||
High-Yield Fund | High-Yield Fund | |||||||
Institutional Class | 384,438 | 2,291,249 | Institutional Class | 720,139 | 4,292,026 | |||
Inflation-Adjusted Bond | Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 389,283 | 4,589,644 | Fund Institutional Class | 731,901 | 8,629,108 | |||
NT Diversified Bond Fund | NT Diversified Bond Fund | |||||||
Institutional Class | 1,489,500 | 16,161,072 | Institutional Class | 2,833,642 | 30,745,016 | |||
23,041,965 | 43,666,150 | |||||||
INTERNATIONAL EQUITY FUNDS — 15.6% | INTERNATIONAL EQUITY FUNDS — 15.9% | |||||||
NT Emerging Markets Fund | NT Emerging Markets Fund | |||||||
Institutional Class | 665,679 | 6,077,653 | Institutional Class | 1,608,076 | 14,681,730 | |||
NT International Growth | NT International Growth | |||||||
Fund Institutional Class | 1,374,322 | 11,750,451 | Fund Institutional Class | 2,851,206 | 24,377,809 | |||
17,828,104 | 39,059,539 | |||||||
TOTAL INVESTMENT | TOTAL INVESTMENT | |||||||
SECURITIES — 100.0% | SECURITIES — 100.0% | |||||||
(Cost $104,083,145) | 114,632,645 | (Cost $235,123,537) | 245,366,664 | |||||
OTHER ASSETS AND LIABILITIES(2) | (929) | OTHER ASSETS AND LIABILITIES(2) | (1,881) | |||||
TOTAL NET ASSETS — 100.0% | $114,631,716 | TOTAL NET ASSETS — 100.0% | $245,364,783 | |||||
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. |
33
LIVESTRONG Portfolios | |||
Shares | Value | ||
LIVESTRONG 2050 Portfolio | |||
Mutual Funds(1) — 100.0% | |||
DOMESTIC EQUITY FUNDS — 68.9% | |||
NT Equity Growth Fund | |||
Institutional Class | 637,861 | $ 5,370,792 | |
NT Growth Fund | |||
Institutional Class | 532,286 | 5,370,762 | |
NT Large Company Value | |||
Fund Institutional Class | 726,891 | 5,458,951 | |
NT Mid Cap Value Fund | |||
Institutional Class | 279,715 | 2,643,311 | |
NT Small Company Fund | |||
Institutional Class | 243,568 | 1,756,125 | |
NT Vista Fund | |||
Institutional Class | 316,149 | 2,652,492 | |
Real Estate Fund | |||
Institutional Class | 64,211 | 1,063,330 | |
24,315,763 | |||
INTERNATIONAL EQUITY FUNDS — 16.0% | |||
NT Emerging Markets Fund | |||
Institutional Class | 251,337 | 2,294,706 | |
NT International Growth | |||
Fund Institutional Class | 390,856 | 3,341,821 | |
5,636,527 | |||
DOMESTIC FIXED INCOME FUNDS — 15.1% | |||
High-Yield Fund | |||
Institutional Class | 88,965 | 530,233 | |
Inflation-Adjusted Bond | |||
Fund Institutional Class | 90,154 | 1,062,921 | |
NT Diversified Bond Fund | |||
Institutional Class | 344,140 | 3,733,920 | |
5,327,074 | |||
TOTAL INVESTMENT | |||
SECURITIES — 100.0% | |||
(Cost $33,007,086) | 35,279,364 | ||
OTHER ASSETS AND LIABILITIES(2) | (141) | ||
TOTAL NET ASSETS — 100.0% | $35,279,223 | ||
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. |
34
Statement of Assets and Liabilities |
July 31, 2010 | |||
LIVESTRONG | LIVESTRONG | LIVESTRONG | |
Income Portfolio | 2015 Portfolio | 2020 Portfolio | |
Assets | |||
Investment securities in affiliates, at value (cost of $198,879,066, | |||
$483,315,752 and $243,341,295, respectively) | $222,373,330 | $520,218,503 | $267,427,889 |
Cash | 47,028 | 105,420 | 55,161 |
Receivable for investments sold | 1,940,786 | 3,297,229 | — |
Receivable for capital shares sold | 326,220 | 427,851 | 244,344 |
Distributions receivable from affiliates | 216,623 | 480,958 | 232,796 |
224,903,987 | 524,529,961 | 267,960,190 | |
Liabilities | |||
Payable for investments purchased | 229,834 | 510,396 | 448,217 |
Payable for capital shares redeemed | 2,253,549 | 3,699,452 | 30,378 |
Accrued administrative fees | 30,951 | 73,236 | 36,614 |
Service fees (and distribution fees — A Class and R Class) payable | 19,365 | 39,539 | 22,439 |
Distribution fees payable | 17 | 109 | 64 |
2,533,716 | 4,322,732 | 537,712 | |
Net Assets | $222,370,271 | $520,207,229 | $267,422,478 |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $211,694,916 | $502,352,790 | $243,753,542 |
Undistributed net investment income | 214,914 | 4,154,710 | 1,926,756 |
Accumulated net realized loss on investment transactions | (13,033,823) | (23,203,022) | (2,344,414) |
Net unrealized appreciation on investments | 23,494,264 | 36,902,751 | 24,086,594 |
$222,370,271 | $520,207,229 | $267,422,478 |
Fund/Class | Net assets | Shares outstanding | Net asset value per share |
LIVESTRONG Income Portfolio | |||
Investor Class, $0.01 Par Value | $102,497,064 | 9,980,891 | $10.27 |
Institutional Class, $0.01 Par Value | $39,201,507 | 3,816,444 | $10.27 |
A Class, $0.01 Par Value | $68,109,845 | 6,633,812 | $10.27* |
C Class, $0.01 Par Value | $34,993 | 3,406 | $10.27 |
R Class, $0.01 Par Value | $12,526,862 | 1,220,803 | $10.26 |
LIVESTRONG 2015 Portfolio | |||
Investor Class, $0.01 Par Value | $284,172,436 | 26,407,617 | $10.76 |
Institutional Class, $0.01 Par Value | $82,264,452 | 7,631,944 | $10.78 |
A Class, $0.01 Par Value | $115,944,834 | 10,790,083 | $10.75* |
C Class, $0.01 Par Value | $182,170 | 16,995 | $10.72 |
R Class, $0.01 Par Value | $37,643,337 | 3,507,644 | $10.73 |
LIVESTRONG 2020 Portfolio | |||
Investor Class, $0.01 Par Value | $127,604,427 | 13,721,018 | $9.30 |
Institutional Class, $0.01 Par Value | $44,304,031 | 4,760,850 | $9.31 |
A Class, $0.01 Par Value | $80,483,125 | 8,670,617 | $9.28* |
C Class, $0.01 Par Value | $102,784 | 11,096 | $9.26 |
R Class, $0.01 Par Value | $14,928,111 | 1,610,600 | $9.27 |
*Maximum offering price $10.90, $11.41, $9.85 (net asset value divided by 0.9425) for LIVESTRONG Income, LIVESTRONG 2015 and | |||
LIVESTRONG 2020, respectively. | |||
See Notes to Financial Statements. |
35
July 31, 2010 | |||
LIVESTRONG | LIVESTRONG | LIVESTRONG | |
2025 Portfolio | 2030 Portfolio | 2035 Portfolio | |
Assets | |||
Investment securities in affiliates, at value (cost of $639,787,652, | |||
$197,913,331 and $410,777,860, respectively) | $687,786,553 | $219,408,949 | $436,471,303 |
Cash | 136,574 | 47,015 | 89,605 |
Receivable for investments sold | 13,197,339 | — | 5,491,777 |
Receivable for capital shares sold | 495,906 | 237,759 | 629,634 |
Distributions receivable from affiliates | 551,784 | 152,959 | 266,189 |
702,168,156 | 219,846,682 | 442,948,508 | |
Liabilities | |||
Payable for investments purchased | 585,968 | 200,411 | 282,825 |
Payable for capital shares redeemed | 13,661,748 | 190,076 | 6,103,512 |
Accrued administrative fees | 98,108 | 30,278 | 61,351 |
Service fees (and distribution fees — A Class and R Class) payable | 48,153 | 20,106 | 34,710 |
Distribution fees payable | 133 | 45 | 38 |
14,394,110 | 440,916 | 6,482,436 | |
Net Assets | $687,774,046 | $219,405,766 | $436,466,072 |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $664,899,465 | $198,426,194 | $426,896,185 |
Undistributed net investment income | 4,969,400 | 1,325,749 | 2,538,182 |
Accumulated net realized loss on investment transactions | (30,093,720) | (1,841,795) | (18,661,738) |
Net unrealized appreciation on investments | 47,998,901 | 21,495,618 | 25,693,443 |
$687,774,046 | $219,405,766 | $436,466,072 |
Fund/Class | Net assets | Shares outstanding | Net asset value per share |
LIVESTRONG 2025 Portfolio | |||
Investor Class, $0.01 Par Value | $393,153,727 | 36,458,207 | $10.78 |
Institutional Class, $0.01 Par Value | $103,770,286 | 9,613,395 | $10.79 |
A Class, $0.01 Par Value | $143,044,657 | 13,281,597 | $10.77* |
C Class, $0.01 Par Value | $372,781 | 34,702 | $10.74 |
R Class, $0.01 Par Value | $47,432,595 | 4,411,091 | $10.75 |
LIVESTRONG 2030 Portfolio | |||
Investor Class, $0.01 Par Value | $99,983,292 | 11,169,940 | $8.95 |
Institutional Class, $0.01 Par Value | $33,646,879 | 3,757,351 | $8.95 |
A Class, $0.01 Par Value | $71,159,091 | 7,968,715 | $8.93* |
C Class, $0.01 Par Value | $161,814 | 18,150 | $8.92 |
R Class, $0.01 Par Value | $14,454,690 | 1,620,281 | $8.92 |
LIVESTRONG 2035 Portfolio | |||
Investor Class, $0.01 Par Value | $231,715,906 | 21,224,810 | $10.92 |
Institutional Class, $0.01 Par Value | $66,385,003 | 6,071,856 | $10.93 |
A Class, $0.01 Par Value | $103,002,239 | 9,446,118 | $10.90* |
C Class, $0.01 Par Value | $86,470 | 7,952 | $10.87 |
R Class, $0.01 Par Value | $35,276,454 | 3,239,414 | $10.89 |
*Maximum offering price $11.43, $9.47, $11.56 (net asset value divided by 0.9425) for LIVESTRONG 2025, LIVESTRONG 2030 and | |||
LIVESTRONG 2035, respectively. | |||
See Notes to Financial Statements. |
36
July 31, 2010 | |||
LIVESTRONG | LIVESTRONG | LIVESTRONG | |
2040 Portfolio | 2045 Portfolio | 2050 Portfolio | |
Assets | |||
Investment securities in affiliates, at value (cost of $104,083,145, | |||
$235,123,537 and $33,007,086, respectively) | $114,632,645 | $245,366,664 | $35,279,364 |
Cash | 24,446 | 46,293 | 7,611 |
Receivable for investments sold | 53,445 | 6,431,995 | — |
Receivable for capital shares sold | 87,182 | 310,691 | 102,349 |
Distributions receivable from affiliates | 56,449 | 111,237 | 12,939 |
114,854,167 | 252,266,880 | 35,402,263 | |
Liabilities | |||
Payable for investments purchased | 60,041 | 118,245 | 93,731 |
Payable for capital shares redeemed | 136,160 | 6,734,179 | 21,136 |
Accrued administrative fees | 14,779 | 31,509 | 4,276 |
Service fees (and distribution fees — A Class and R Class) payable | 11,440 | 18,127 | 3,879 |
Distribution fees payable | 31 | 37 | 18 |
222,451 | 6,902,097 | 123,040 | |
Net Assets | $114,631,716 | $245,364,783 | $35,279,223 |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $104,361,636 | $247,256,812 | $33,274,131 |
Undistributed net investment income | 528,130 | 1,160,476 | 123,456 |
Accumulated net realized loss on investment transactions | (807,550) | (13,295,632) | (390,642) |
Net unrealized appreciation on investments | 10,549,500 | 10,243,127 | 2,272,278 |
$114,631,716 | $245,364,783 | $35,279,223 |
Fund/Class | Net assets | Shares outstanding | Net asset value per share |
LIVESTRONG 2040 Portfolio | |||
Investor Class, $0.01 Par Value | $41,985,216 | 4,812,345 | $8.72 |
Institutional Class, $0.01 Par Value | $22,593,248 | 2,587,939 | $8.73 |
A Class, $0.01 Par Value | $42,211,921 | 4,845,880 | $8.71* |
C Class, $0.01 Par Value | $68,332 | 7,869 | $8.68 |
R Class, $0.01 Par Value | $7,772,999 | 893,988 | $8.69 |
LIVESTRONG 2045 Portfolio | |||
Investor Class, $0.01 Par Value | $113,447,338 | 10,484,671 | $10.82 |
Institutional Class, $0.01 Par Value | $57,836,286 | 5,337,922 | $10.83 |
A Class, $0.01 Par Value | $56,695,102 | 5,248,530 | $10.80* |
C Class, $0.01 Par Value | $59,326 | 5,505 | $10.78 |
R Class, $0.01 Par Value | $17,326,731 | 1,605,892 | $10.79 |
LIVESTRONG 2050 Portfolio | |||
Investor Class, $0.01 Par Value | $10,225,398 | 1,210,184 | $8.45 |
Institutional Class, $0.01 Par Value | $8,482,258 | 1,002,371 | $8.46 |
A Class, $0.01 Par Value | $13,463,325 | 1,596,010 | $8.44* |
C Class, $0.01 Par Value | $32,028 | 3,804 | $8.42 |
R Class, $0.01 Par Value | $3,076,214 | 365,050 | $8.43 |
*Maximum offering price $9.24, $11.46, $8.95 (net asset value divided by 0.9425) for LIVESTRONG 2040, LIVESTRONG 2045 and | |||
LIVESTRONG 2050, respectively. | |||
See Notes to Financial Statements. |
37
Statement of Operations |
YEAR ENDED JULY 31, 2010 | |||
LIVESTRONG | LIVESTRONG | LIVESTRONG | |
Income Portfolio | 2015 Portfolio | 2020 Portfolio | |
Investment Income (Loss) | |||
Income: | |||
Income distributions from underlying funds — affiliates | $ 4,751,357 | $10,039,952 | $ 4,332,010 |
Expenses: | |||
Administrative fees: | |||
Investor Class | 201,286 | 510,021 | 220,477 |
A Class | 113,402 | 160,394 | 93,492 |
C Class | 21 | 84 | 45 |
R Class | 18,736 | 54,896 | 20,200 |
Distribution fees — C Class | 80 | 316 | 170 |
Service fees — C Class | 27 | 105 | 57 |
Distribution and service fees: | |||
A Class | 141,751 | 200,492 | 116,865 |
R Class | 46,841 | 137,241 | 50,500 |
Directors’ fees and expenses | 9,069 | 18,694 | 8,426 |
Proxy expenses | 3,778 | 8,230 | 3,123 |
534,991 | 1,090,473 | 513,355 | |
Net investment income (loss) | 4,216,366 | 8,949,479 | 3,818,655 |
Net Realized and Unrealized Gain (Loss) on Affiliates | |||
Net realized gain (loss) on sale of investments | |||
in underlying funds | (126,428) | (4,579,870) | 137,981 |
Change in net unrealized appreciation (depreciation) | |||
on investments in underlying funds | 13,604,462 | 35,649,394 | 14,314,949 |
Net realized and unrealized gain (loss) on affiliates | 13,478,034 | 31,069,524 | 14,452,930 |
Net Increase (Decrease) in Net Assets | |||
Resulting from Operations | $17,694,400 | $40,019,003 | $18,271,585 |
See Notes to Financial Statements.
38
YEAR ENDED JULY 31, 2010 | |||
LIVESTRONG | LIVESTRONG | LIVESTRONG | |
2025 Portfolio | 2030 Portfolio | 2035 Portfolio | |
Investment Income (Loss) | |||
Income: | |||
Income distributions from underlying funds — affiliates | $11,908,398 | $ 2,986,962 | $ 6,238,121 |
Expenses: | |||
Administrative fees: | |||
Investor Class | 730,557 | 172,785 | 418,598 |
A Class | 189,807 | 83,112 | 135,510 |
C Class | 76 | 36 | 39 |
R Class | 65,936 | 20,472 | 45,997 |
Distribution fees — C Class | 284 | 134 | 146 |
Service fees — C Class | 95 | 45 | 49 |
Distribution and service fees: | |||
A Class | 237,259 | 103,890 | 169,388 |
R Class | 164,840 | 51,180 | 114,992 |
Directors’ fees and expenses | 24,611 | 7,081 | 15,320 |
Proxy expenses | 11,343 | 3,153 | 10,652 |
1,424,808 | 441,888 | 910,691 | |
Net investment income (loss) | 10,483,590 | 2,545,074 | 5,327,430 |
Net Realized and Unrealized Gain (Loss) on Affiliates | |||
Net realized gain (loss) on sale of investments | |||
in underlying funds | (9,470,835) | 173,064 | (6,312,800) |
Change in net unrealized appreciation (depreciation) | |||
on investments in underlying funds | 59,600,664 | 12,892,175 | 40,076,977 |
Net realized and unrealized gain (loss) on affiliates | 50,129,829 | 13,065,239 | 33,764,177 |
Net Increase (Decrease) in Net Assets | |||
Resulting from Operations | $60,613,419 | $15,610,313 | $39,091,607 |
See Notes to Financial Statements.
39
YEAR ENDED JULY 31, 2010 | |||
LIVESTRONG | LIVESTRONG | LIVESTRONG | |
2040 Portfolio | 2045 Portfolio | 2050 Portfolio | |
Investment Income (Loss) | |||
Income: | |||
Income distributions from underlying funds — affiliates | $1,251,929 | $ 3,037,911 | $ 288,148 |
Expenses: | |||
Administrative fees: | |||
Investor Class | 66,884 | 209,128 | 13,549 |
A Class | 46,519 | 73,598 | 13,719 |
C Class | 28 | 39 | 23 |
R Class | 11,830 | 22,218 | 3,173 |
Distribution fees — C Class | 106 | 145 | 84 |
Service fees — C Class | 35 | 49 | 28 |
Distribution and service fees: | |||
A Class | 58,149 | 91,997 | 17,148 |
R Class | 29,574 | 55,546 | 7,934 |
Directors’ fees and expenses | 3,481 | 8,291 | 942 |
Proxy expenses | 3,982 | 11,777 | 3,762 |
220,588 | 472,788 | 60,362 | |
Net investment income (loss) | 1,031,341 | 2,565,123 | 227,786 |
Net Realized and Unrealized Gain (Loss) on Affiliates | |||
Net realized gain (loss) on sale of investments | |||
in underlying funds | (10,558) | (4,303,375) | (90,527) |
Change in net unrealized appreciation (depreciation) | |||
on investments in underlying funds | 6,470,949 | 24,427,791 | 1,504,155 |
Net realized and unrealized gain (loss) on affiliates | 6,460,391 | 20,124,416 | 1,413,628 |
Net Increase (Decrease) in Net Assets | |||
Resulting from Operations | $7,491,732 | $22,689,539 | $1,641,414 |
See Notes to Financial Statements.
40
Statement of Changes in Net Assets |
YEARS ENDED JULY 31, 2010 AND JULY 31, 2009 | ||||
LIVESTRONG Income Portfolio | LIVESTRONG 2015 Portfolio | |||
Increase (Decrease) in Net Assets | 2010 | 2009 | 2010 | 2009 |
Operations | ||||
Net investment income (loss) | $ 4,216,366 | $ 2,613,786 | $ 8,949,479 | $ 6,716,232 |
Net realized gain (loss) | (126,428) | (12,223,837) | (4,579,870) | (17,104,784) |
Change in net unrealized | ||||
appreciation (depreciation) | 13,604,462 | 9,836,410 | 35,649,394 | 1,797,021 |
Net increase (decrease) in net assets | ||||
resulting from operations | 17,694,400 | 226,359 | 40,019,003 | (8,591,531) |
Distributions to Shareholders | ||||
From net investment income: | ||||
Investor Class | (2,206,291) | (1,891,448) | (4,463,585) | (5,150,679) |
Institutional Class | (744,330) | (380,646) | (1,368,794) | (667,576) |
A Class | (1,055,217) | (249,615) | (1,134,136) | (842,999) |
C Class | (81) | — | — | — |
R Class | (147,212) | (36,296) | (317,118) | (170,136) |
From net realized gains: | ||||
Investor Class | — | (405,727) | — | (1,965,341) |
Institutional Class | — | (79,352) | — | (241,939) |
A Class | — | (72,879) | — | (344,341) |
R Class | — | (12,048) | — | (74,791) |
Decrease in net assets from distributions | (4,153,131) | (3,128,011) | (7,283,633) | (9,457,802) |
Capital Share Transactions | ||||
Net increase (decrease) in net assets | ||||
from capital share transactions | 50,632,210 | 93,346,171 | 157,121,897 | 140,167,568 |
Net increase (decrease) in net assets | 64,173,479 | 90,444,519 | 189,857,267 | 122,118,235 |
Net Assets | ||||
Beginning of period | 158,196,792 | 67,752,273 | 330,349,962 | 208,231,727 |
End of period | $222,370,271 | $158,196,792 | $520,207,229 | $330,349,962 |
Undistributed net investment income | $214,914 | $151,679 | $4,154,710 | $2,488,864 |
See Notes to Financial Statements. |
41
YEARS ENDED JULY 31, 2010 AND JULY 31, 2009 | ||||
LIVESTRONG 2020 Portfolio | LIVESTRONG 2025 Portfolio | |||
Increase (Decrease) in Net Assets | 2010 | 2009 | 2010 | 2009 |
Operations | ||||
Net investment income (loss) | $ 3,818,655 | $ 998,442 | $ 10,483,590 | $ 7,970,000 |
Net realized gain (loss) | 137,981 | (2,265,500) | (9,470,835) | (18,294,566) |
Change in net unrealized | ||||
appreciation (depreciation) | 14,314,949 | 9,783,711 | 59,600,664 | (8,435,503) |
Net increase (decrease) in net assets | ||||
resulting from operations | 18,271,585 | 8,516,653 | 60,613,419 | (18,760,069) |
Distributions to Shareholders | ||||
From net investment income: | ||||
Investor Class | (1,688,609) | (71,188) | (5,629,840) | (5,950,462) |
Institutional Class | (522,929) | (11,369) | (1,558,390) | (1,225,708) |
A 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) |
A Class | (42,315) | — | — | (471,571) |
R Class | (11,626) | — | — | (87,038) |
Decrease in net assets from distributions | (3,001,602) | (107,135) | (8,571,934) | (12,538,176) |
Capital Share Transactions | ||||
Net increase (decrease) in net assets | ||||
from capital share transactions | 132,134,943 | 110,507,216 | 177,818,886 | 198,757,669 |
Net increase (decrease) in net assets | 147,404,926 | 118,916,734 | 229,860,371 | 167,459,424 |
Net Assets | ||||
Beginning of period | 120,017,552 | 1,100,818 | 457,913,675 | 290,454,251 |
End of period | $267,422,478 | $120,017,552 | $687,774,046 | $457,913,675 |
Undistributed net investment income | $1,926,756 | $892,096 | $4,969,400 | $3,057,750 |
See Notes to Financial Statements. |
42
YEARS ENDED JULY 31, 2010 AND JULY 31, 2009 | ||||
LIVESTRONG 2030 Portfolio | LIVESTRONG 2035 Portfolio | |||
Increase (Decrease) in Net Assets | 2010 | 2009 | 2010 | 2009 |
Operations | ||||
Net investment income (loss) | $ 2,545,074 | $ 672,384 | $ 5,327,430 | $ 3,920,540 |
Net realized gain (loss) | 173,064 | (1,795,860) | (6,312,800) | (11,046,566) |
Change in net unrealized | ||||
appreciation (depreciation) | 12,892,175 | 8,609,759 | 40,076,977 | (10,372,689) |
Net increase (decrease) in net assets | ||||
resulting from operations | 15,610,313 | 7,486,283 | 39,091,607 | (17,498,715) |
Distributions to Shareholders | ||||
From net investment income: | ||||
Investor Class | (1,067,099) | (36,634) | (2,690,075) | (2,790,828) |
Institutional Class | (337,882) | (8,184) | (813,193) | (561,509) |
A 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) |
A Class | (49,531) | — | — | (363,962) |
R Class | (13,939) | — | — | (68,580) |
Decrease in net assets from distributions | (2,044,817) | (65,520) | (4,299,270) | (6,808,276) |
Capital Share Transactions | ||||
Net increase (decrease) in net assets | ||||
from capital share transactions | 110,979,695 | 86,795,822 | 140,993,510 | 110,729,046 |
Net increase (decrease) in net assets | 124,545,191 | 94,216,585 | 175,785,847 | 86,422,055 |
Net Assets | ||||
Beginning of period | 94,860,575 | 643,990 | 260,680,225 | 174,258,170 |
End of period | $219,405,766 | $94,860,575 | $436,466,072 | $260,680,225 |
Undistributed net investment income | $1,325,749 | $607,150 | $2,538,182 | $1,510,022 |
See Notes to Financial Statements. |
43
YEARS ENDED JULY 31, 2010 AND JULY 31, 2009 | ||||
LIVESTRONG 2040 Portfolio | LIVESTRONG 2045 Portfolio | |||
Increase (Decrease) in Net Assets | 2010 | 2009 | 2010 | 2009 |
Operations | ||||
Net investment income (loss) | $ 1,031,341 | $ 232,457 | $ 2,565,123 | $ 2,149,994 |
Net realized gain (loss) | (10,558) | (754,318) | (4,303,375) | (7,438,967) |
Change in net unrealized | ||||
appreciation (depreciation) | 6,470,949 | 4,078,190 | 24,427,791 | (10,606,884) |
Net increase (decrease) in net assets | ||||
resulting from operations | 7,491,732 | 3,556,329 | 22,689,539 | (15,895,857) |
Distributions to Shareholders | ||||
From net investment income: | ||||
Investor Class | (344,746) | (16,296) | (1,209,264) | (1,472,652) |
Institutional Class | (176,416) | (1,179) | (562,617) | (568,816) |
A 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) |
A Class | (11,184) | — | — | (213,458) |
R Class | (3,480) | — | — | (33,394) |
Decrease in net assets from distributions | (747,591) | (31,043) | (2,148,916) | (4,318,244) |
Capital Share Transactions | ||||
Net increase (decrease) in net assets | ||||
from capital share transactions | 69,758,316 | 33,755,308 | 82,586,901 | 45,933,636 |
Net increase (decrease) in net assets | 76,502,457 | 37,280,594 | 103,127,524 | 25,719,535 |
Net Assets | ||||
Beginning of period | 38,129,259 | 848,665 | 142,237,259 | 116,517,724 |
End of period | $114,631,716 | $38,129,259 | $245,364,783 | $142,237,259 |
Undistributed net investment income | $528,130 | $201,743 | $1,160,476 | $744,269 |
See Notes to Financial Statements. |
44
YEARS ENDED JULY 31, 2010 AND JULY 31, 2009 | ||
LIVESTRONG 2050 Portfolio | ||
Increase (Decrease) in Net Assets | 2010 | 2009 |
Operations | ||
Net investment income (loss) | $ 227,786 | $ 51,261 |
Net realized gain (loss) | (90,527) | (294,289) |
Change in net unrealized appreciation (depreciation) | 1,504,155 | 786,829 |
Net increase (decrease) in net assets resulting from operations | 1,641,414 | 543,801 |
Distributions to Shareholders | ||
From net investment income: | ||
Investor Class | (47,343) | (8,507) |
Institutional Class | (51,865) | (10,356) |
A Class | (32,082) | (179) |
R Class | (5,224) | (502) |
From net realized gains: | ||
Investor Class | (1,689) | — |
Institutional Class | (1,512) | — |
A 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 | 26,623,802 | 6,149,716 |
Net increase (decrease) in net assets | 28,123,492 | 6,673,973 |
Net Assets | ||
Beginning of period | 7,155,731 | 481,758 |
End of period | $35,279,223 | $7,155,731 |
Undistributed net investment income | $123,456 | $32,184 |
See Notes to Financial Statements. |
45
Notes to Financial Statements |
JULY 31, 2010
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). 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. 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 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. 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 f ixed 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, the A Class (formerly Advisor Class), the C Class and R Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge. 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. Sale of the funds’ C Class commenced on March 1, 2010.
Security Valuations — Investments in the underlying funds are valued at their reported net asset value.
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.
46
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 2007. 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.
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.
47
2. Fees and Transactions with Related Parties
Administrative Fees — The corporation has entered into an 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, A Class, C 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 A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay American Century Investment Services, Inc. (ACIS) an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution fee of 0.75% 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 un der the plans during the year ended July 31, 2010, are detailed in the Statement of Operations.
Acquired Fund Fees and Expenses — 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 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 (non-voting shares) in ACC.
3. Investment Transactions
Investment transactions for the year ended July 31, 2010, were as follows:
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | |
Income Portfolio | 2015 Portfolio | 2020 Portfolio | 2025 Portfolio | 2030 Portfolio | |
Purchases | $76,625,576 | $197,242,302 | $147,530,320 | $236,179,996 | $122,328,862 |
Sales | $25,936,576 | $38,462,074 | $14,579,345 | $56,457,849 | $10,849,442 |
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | ||
2035 Portfolio | 2040 Portfolio | 2045 Portfolio | 2050 Portfolio | ||
Purchases | $170,460,115 | $72,545,044 | $99,508,564 | $29,430,011 | |
Sales | $28,441,227 | $2,502,984 | $16,506,441 | $2,720,085 |
48
4. Capital Share Transactions
The corporation is authorized to issue 3,000,000,000 shares. Transactions in shares of the funds were as follows:
Year ended July 31, 2010(1) | Year ended July 31, 2009 | |||
Shares | Amount | Shares | Amount | |
LIVESTRONG Income Portfolio | ||||
Investor Class | ||||
Sold | 2,184,083 | $ 22,000,029 | 18,698,026 | $ 167,113,157 |
Issued in reinvestment of distributions | 214,983 | 2,175,774 | 248,479 | 2,248,041 |
Redeemed | (2,436,052) | (24,569,889) | (13,569,378) | (119,654,444) |
(36,986) | (394,086) | 5,377,127 | 49,706,754 | |
Institutional Class | ||||
Sold | 2,254,687 | 22,806,647 | 2,203,254 | 19,476,461 |
Issued in reinvestment of distributions | 73,461 | 744,330 | 50,835 | 459,998 |
Redeemed | (1,144,764) | (11,599,020) | (536,074) | (4,816,742) |
1,183,384 | 11,951,957 | 1,718,015 | 15,119,717 | |
A Class | ||||
Sold | 4,719,612 | 47,468,266 | 3,611,889 | 32,498,100 |
Issued in reinvestment of distributions | 98,440 | 997,333 | 35,451 | 321,543 |
Redeemed | (1,774,828) | (17,946,871) | (835,727) | (7,366,830) |
3,043,224 | 30,518,728 | 2,811,613 | 25,452,813 | |
C Class | N/A | |||
Sold | 3,398 | 34,578 | ||
Issued in reinvestment of distributions | 8 | 81 | ||
3,406 | 34,659 | |||
R Class | ||||
Sold | 1,266,751 | 12,691,175 | 406,615 | 3,736,252 |
Issued in reinvestment of distributions | 14,206 | 144,087 | 5,385 | 47,928 |
Redeemed | (424,199) | (4,314,310) | (80,992) | (717,293) |
856,758 | 8,520,952 | 331,008 | 3,066,887 | |
Net increase (decrease) | 5,049,786 | $ 50,632,210 | 10,237,763 | $ 93,346,171 |
(1) March 1, 2010 (commencement of sale) through July 31, 2010 for the C Class. |
49
Year ended July 31, 2010(1) | Year ended July 31, 2009 | |||
Shares | Amount | Shares | Amount | |
LIVESTRONG 2015 Portfolio | ||||
Investor Class | ||||
Sold | 8,952,469 | $ 94,715,987 | 22,036,378 | $ 202,222,781 |
Issued in reinvestment of distributions | 420,673 | 4,438,097 | 786,589 | 7,063,567 |
Redeemed | (4,965,891) | (52,328,242) | (15,032,106) | (136,940,716) |
4,407,251 | 46,825,842 | 7,790,861 | 72,345,632 | |
Institutional Class | ||||
Sold | 2,625,484 | 27,552,878 | 5,289,808 | 48,352,553 |
Issued in reinvestment of distributions | 129,621 | 1,368,794 | 101,282 | 909,515 |
Redeemed | (1,140,994) | (12,013,568) | (937,904) | (8,499,045) |
1,614,111 | 16,908,104 | 4,453,186 | 40,763,023 | |
A Class | ||||
Sold | 8,713,060 | 91,872,960 | 2,828,051 | 26,297,380 |
Issued in reinvestment of distributions | 99,377 | 1,048,428 | 130,939 | 1,175,836 |
Redeemed | (2,119,946) | (22,428,079) | (1,005,660) | (9,384,716) |
6,692,491 | 70,493,309 | 1,953,330 | 18,088,500 | |
C Class | N/A | |||
Sold | 16,995 | 182,153 | ||
R Class | ||||
Sold | 3,023,842 | 31,852,385 | 1,828,044 | 16,821,336 |
Issued in reinvestment of distributions | 27,956 | 295,219 | 26,161 | 234,927 |
Redeemed | (896,895) | (9,435,115) | (868,132) | (8,085,850) |
2,154,903 | 22,712,489 | 986,073 | 8,970,413 | |
Net increase (decrease) | 14,885,751 | $157,121,897 | 15,183,450 | $ 140,167,568 |
(1) March 1, 2010 (commencement of sale) through July 31, 2010 for the C Class. |
50
Year ended July 31, 2010(1) | Year ended July 31, 2009 | |||
Shares | Amount | Shares | Amount | |
LIVESTRONG 2020 Portfolio | ||||
Investor Class | ||||
Sold | 5,126,049 | $ 46,479,800 | 27,157,029 | $ 210,655,998 |
Issued in reinvestment of distributions | 198,914 | 1,814,092 | 9,330 | 71,188 |
Redeemed | (2,386,514) | (21,522,805) | (16,496,812) | (126,304,813) |
2,938,449 | 26,771,087 | 10,669,547 | 84,422,373 | |
Institutional Class | ||||
Sold | 2,860,294 | 25,944,916 | 2,804,118 | 21,239,817 |
Issued in reinvestment of distributions | 61,208 | 558,215 | 1,490 | 11,369 |
Redeemed | (701,267) | (6,435,507) | (266,680) | (2,037,321) |
2,220,235 | 20,067,624 | 2,538,928 | 19,213,865 | |
A Class | ||||
Sold | 9,414,120 | 85,093,641 | 485,585 | 3,886,194 |
Issued in reinvestment of distributions | 55,971 | 510,452 | 1,687 | 12,872 |
Redeemed | (1,258,687) | (11,371,839) | (28,684) | (226,837) |
8,211,404 | 74,232,254 | 458,588 | 3,672,229 | |
C Class | N/A | |||
Sold | 11,096 | 101,394 | ||
R Class | ||||
Sold | 1,616,523 | 14,574,000 | 441,491 | 3,608,622 |
Issued in reinvestment of distributions | 12,710 | 115,914 | 1,534 | 11,706 |
Redeemed | (406,400) | (3,727,330) | (55,883) | (421,579) |
1,222,833 | 10,962,584 | 387,142 | 3,198,749 | |
Net increase (decrease) | 14,604,017 | $132,134,943 | 14,054,205 | $ 110,507,216 |
(1) March 1, 2010 (commencement of sale) through July 31, 2010 for the C Class. |
51
Year ended July 31, 2010(1) | Year ended July 31, 2009 | |||
Shares | Amount | Shares | Amount | |
LIVESTRONG 2025 Portfolio | ||||
Investor Class | ||||
Sold | 10,707,619 | $112,955,118 | 32,596,486 | $ 293,192,970 |
Issued in reinvestment of distributions | 529,924 | 5,611,894 | 1,046,971 | 9,161,018 |
Redeemed | (6,947,516) | (73,413,347) | (19,969,203) | (177,575,845) |
4,290,027 | 45,153,665 | 13,674,254 | 124,778,143 | |
Institutional Class | ||||
Sold | 2,680,022 | 28,225,921 | 5,025,377 | 44,620,828 |
Issued in reinvestment of distributions | 147,157 | 1,558,390 | 211,413 | 1,849,853 |
Redeemed | (1,204,515) | (12,708,793) | (1,078,207) | (9,830,657) |
1,622,664 | 17,075,518 | 4,158,583 | 36,640,024 | |
A Class | ||||
Sold | 10,386,950 | 109,810,806 | 3,796,789 | 34,330,412 |
Issued in reinvestment of distributions | 92,438 | 979,846 | 144,407 | 1,263,560 |
Redeemed | (2,301,528) | (24,335,389) | (1,254,939) | (11,345,728) |
8,177,860 | 86,455,263 | 2,686,257 | 24,248,244 | |
C Class | N/A | |||
Sold | 34,702 | 369,670 | ||
R Class | ||||
Sold | 3,458,392 | 36,451,313 | 1,610,391 | 14,596,950 |
Issued in reinvestment of distributions | 26,847 | 284,575 | 23,819 | 208,417 |
Redeemed | (754,323) | (7,971,118) | (190,859) | (1,714,109) |
2,730,916 | 28,764,770 | 1,443,351 | 13,091,258 | |
Net increase (decrease) | 16,856,169 | $177,818,886 | 21,962,445 | $ 198,757,669 |
(1) March 1, 2010 (commencement of sale) through July 31, 2010 for the C Class. |
52
Year ended July 31, 2010(1) | Year ended July 31, 2009 | |||
Shares | Amount | Shares | Amount | |
LIVESTRONG 2030 Portfolio | ||||
Investor Class | ||||
Sold | 3,912,912 | $ 34,150,499 | 21,407,615 | $156,161,055 |
Issued in reinvestment of distributions | 134,491 | 1,184,863 | 5,047 | 36,137 |
Redeemed | (1,626,724) | (14,163,323) | (12,730,080) | (91,576,604) |
2,420,679 | 21,172,039 | 8,682,582 | 64,620,588 | |
Institutional Class | ||||
Sold | 1,998,408 | 17,512,277 | 2,368,824 | 16,803,262 |
Issued in reinvestment of distributions | 42,125 | 371,125 | 1,145 | 8,184 |
Redeemed | (461,324) | (4,047,600) | (192,452) | (1,365,186) |
1,579,209 | 13,835,802 | 2,177,517 | 15,446,260 | |
A Class | ||||
Sold | 8,696,020 | 75,624,511 | 467,504 | 3,491,863 |
Issued in reinvestment of distributions | 45,160 | 397,410 | 756 | 5,403 |
Redeemed | (1,193,263) | (10,396,735) | (48,087) | (351,751) |
7,547,917 | 65,625,186 | 420,173 | 3,145,515 | |
C Class | N/A | |||
Sold | 18,150 | 161,324 | ||
R Class | ||||
Sold | 1,676,516 | 14,587,178 | 511,522 | 4,063,426 |
Issued in reinvestment of distributions | 9,934 | 87,520 | 2,140 | 15,299 |
Redeemed | (511,840) | (4,489,354) | (68,616) | (495,266) |
1,174,610 | 10,185,344 | 445,046 | 3,583,459 | |
Net increase (decrease) | 12,740,565 | $110,979,695 | 11,725,318 | $ 86,795,822 |
(1) March 1, 2010 (commencement of sale) through July 31, 2010 for the C Class. |
53
Year ended July 31, 2010(1) | Year ended July 31, 2009 | |||
Shares | Amount | Shares | Amount | |
LIVESTRONG 2035 Portfolio | ||||
Investor Class | ||||
Sold | 7,508,667 | $ 80,076,813 | 15,299,408 | $136,512,600 |
Issued in reinvestment of distributions | 249,330 | 2,685,282 | 568,003 | 4,896,188 |
Redeemed | (4,028,136) | (43,126,429) | (9,015,703) | (79,453,689) |
3,729,861 | 39,635,666 | 6,851,708 | 61,955,099 | |
Institutional Class | ||||
Sold | 2,018,899 | 21,511,238 | 3,274,007 | 28,605,892 |
Issued in reinvestment of distributions | 75,505 | 813,193 | 111,052 | 958,378 |
Redeemed | (792,577) | (8,482,180) | (604,926) | (5,288,948) |
1,301,827 | 13,842,251 | 2,780,133 | 24,275,322 | |
A Class | ||||
Sold | 7,418,021 | 79,117,746 | 2,405,740 | 21,576,278 |
Issued in reinvestment of distributions | 51,157 | 550,958 | 91,719 | 791,531 |
Redeemed | (1,403,594) | (15,003,429) | (700,595) | (6,258,117) |
6,065,584 | 64,665,275 | 1,796,864 | 16,109,692 | |
C Class | N/A | |||
Sold | 7,952 | 87,137 | ||
R Class | ||||
Sold | 2,588,166 | 27,661,446 | 1,031,714 | 9,297,204 |
Issued in reinvestment of distributions | 12,538 | 135,037 | 15,842 | 136,697 |
Redeemed | (471,005) | (5,033,302) | (118,195) | (1,044,968) |
2,129,699 | 22,763,181 | 929,361 | 8,388,933 | |
Net increase (decrease) | 13,234,923 | $140,993,510 | 12,358,066 | $110,729,046 |
(1) March 1, 2010 (commencement of sale) through July 31, 2010 for the C Class. |
54
Year ended July 31, 2010(1) | Year ended July 31, 2009 | |||
Shares | Amount | Shares | Amount | |
LIVESTRONG 2040 Portfolio | ||||
Investor Class | ||||
Sold | 2,448,495 | $20,766,942 | 6,667,507 | $ 46,398,192 |
Issued in reinvestment of distributions | 42,116 | 363,458 | 2,393 | 16,296 |
Redeemed | (826,471) | (7,020,496) | (3,611,169) | (24,864,481) |
1,664,140 | 14,109,904 | 3,058,731 | 21,550,007 | |
Institutional Class | ||||
Sold | 1,589,263 | 13,536,611 | 1,366,315 | 9,109,351 |
Issued in reinvestment of distributions | 21,419 | 184,847 | 173 | 1,179 |
Redeemed | (293,039) | (2,515,316) | (96,817) | (658,594) |
1,317,643 | 11,206,142 | 1,269,671 | 8,451,936 | |
A Class | ||||
Sold | 5,300,972 | 44,957,456 | 221,418 | 1,546,579 |
Issued in reinvestment of distributions | 18,804 | 162,278 | 424 | 2,891 |
Redeemed | (674,479) | (5,710,323) | (21,884) | (151,240) |
4,645,297 | 39,409,411 | 199,958 | 1,398,230 | |
C Class | N/A | |||
Sold | 7,869 | 68,173 | ||
R Class | ||||
Sold | 850,629 | 7,161,309 | 360,415 | 2,744,768 |
Issued in reinvestment of distributions | 4,165 | 35,945 | 1,568 | 10,677 |
Redeemed | (264,895) | (2,232,568) | (58,519) | (400,310) |
589,899 | 4,964,686 | 303,464 | 2,355,135 | |
Net increase (decrease) | 8,224,848 | $69,758,316 | 4,831,824 | $ 33,755,308 |
(1) March 1, 2010 (commencement of sale) through July 31, 2010 for the C Class. |
55
Year ended July 31, 2010(1) | Year ended July 31, 2009 | |||
Shares | Amount | Shares | Amount | |
LIVESTRONG 2045 Portfolio | ||||
Investor Class | ||||
Sold | 4,194,877 | $ 44,480,212 | 5,655,690 | $49,850,208 |
Issued in reinvestment of distributions | 112,216 | 1,202,953 | 328,649 | 2,767,177 |
Redeemed | (2,696,306) | (28,650,407) | (3,046,344) | (26,737,712) |
1,610,787 | 17,032,758 | 2,937,995 | 25,879,673 | |
Institutional Class | ||||
Sold | 2,349,268 | 24,498,658 | 1,773,404 | 15,431,701 |
Issued in reinvestment of distributions | 52,483 | 562,617 | 123,451 | 1,039,462 |
Redeemed | (671,080) | (7,121,731) | (823,627) | (7,441,026) |
1,730,671 | 17,939,544 | 1,073,228 | 9,030,137 | |
A Class | ||||
Sold | 4,520,937 | 47,724,570 | 1,094,726 | 9,314,758 |
Issued in reinvestment of distributions | 26,822 | 287,269 | 50,634 | 426,339 |
Redeemed | (1,131,070) | (11,984,861) | (247,353) | (2,181,953) |
3,416,689 | 36,026,978 | 898,007 | 7,559,144 | |
C Class | N/A | |||
Sold | 5,505 | 61,005 | ||
R Class | ||||
Sold | 1,394,358 | 14,752,941 | 502,089 | 4,299,317 |
Issued in reinvestment of distributions | 5,467 | 58,605 | 6,079 | 51,182 |
Redeemed | (313,238) | (3,284,930) | (103,842) | (885,817) |
1,086,587 | 11,526,616 | 404,326 | 3,464,682 | |
Net increase (decrease) | 7,850,239 | $ 82,586,901 | 5,313,556 | $45,933,636 |
(1) March 1, 2010 (commencement of sale) through July 31, 2010 for the C Class. |
56
Year ended July 31, 2010(1) | Year ended July 31, 2009 | |||
Shares | Amount | Shares | Amount | |
LIVESTRONG 2050 Portfolio | ||||
Investor Class | ||||
Sold | 1,278,063 | $10,637,873 | 655,827 | $ 4,433,260 |
Issued in reinvestment of distributions | 5,827 | 48,830 | 1,292 | 8,453 |
Redeemed | (536,639) | (4,474,798) | (244,500) | (1,606,061) |
747,251 | 6,211,905 | 412,619 | 2,835,652 | |
Institutional Class | ||||
Sold | 815,071 | 6,734,114 | 493,540 | 3,313,874 |
Issued in reinvestment of distributions | 6,369 | 53,377 | 1,583 | 10,356 |
Redeemed | (244,604) | (1,994,120) | (70,213) | (482,585) |
576,836 | 4,793,371 | 424,910 | 2,841,645 | |
A Class | ||||
Sold | 1,831,737 | 15,075,296 | 45,591 | 310,177 |
Issued in reinvestment of distributions | 4,018 | 33,669 | 27 | 179 |
Redeemed | (284,881) | (2,325,820) | (1,107) | (7,497) |
1,550,874 | 12,783,145 | 44,511 | 302,859 | |
C Class | N/A | |||
Sold | 3,804 | 31,774 | ||
R Class | ||||
Sold | 410,331 | 3,378,344 | 29,516 | 203,431 |
Issued in reinvestment of distributions | 645 | 5,406 | 77 | 502 |
Redeemed | (70,964) | (580,143) | (5,180) | (34,373) |
340,012 | 2,803,607 | 24,413 | 169,560 | |
Net increase (decrease) | 3,218,777 | $26,623,802 | 906,453 | $ 6,149,716 |
(1) March 1, 2010 (commencement of sale) through July 31, 2010 for the C Class. |
57
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 year ended July 31, 2010 follows:
July 31, 2009 | July 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 | $ 9,877,973 | $ 4,875,235 | $(261,930) | $ 309,214 | 3,439,712 | $ 28,962,377 |
NT Growth Fund | |||||||
Institutional Class | 1,191,828 | 4,171,973 | 1,804,851 | (6,115) | 56,084 | 1,439,628 | 14,525,843 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 2,563,045 | 8,611,636 | 3,439,541 | 24,217 | 376,323 | 3,265,018 | 24,520,284 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 826,168 | 2,123,141 | 1,045,416 | (21,157) | 130,519 | 951,588 | 8,992,508 |
NT Small Company | |||||||
Fund Institutional Class | 545,562 | 1,236,990 | 677,833 | 50,626 | 17,633 | 628,454 | 4,531,151 |
NT Vista Fund | |||||||
Institutional Class | 531,826 | 1,801,678 | 691,936 | (4,324) | 530 | 675,757 | 5,669,601 |
Real Estate Fund | |||||||
Institutional Class | 138,750 | 399,671 | 359,253 | 39,916 | 33,514 | 140,184 | 2,321,449 |
High-Yield Fund | |||||||
Institutional Class | 1,118,004 | 2,083,144 | 319,711 | (27,786) | 643,204 | 1,431,037 | 8,528,981 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 1,050,025 | 5,339,192 | 1,299,426 | 1,144 | 480,905 | 1,402,114 | 16,530,927 |
NT Diversified Bond | |||||||
Fund Institutional Class | 3,920,806 | 22,701,921 | 6,560,754 | 18,936 | 2,017,958 | 5,456,060 | 59,198,249 |
Premium Money Market | |||||||
Fund Investor Class | 15,019,816 | 8,075,927 | 1,299,797 | — | 14,343 | 21,795,946 | 21,795,946 |
International Bond Fund | |||||||
Institutional Class | 761,308 | 6,001,389 | 1,193,728 | (60,603) | 540,020 | 1,097,284 | 15,669,213 |
NT International Growth | |||||||
Fund Institutional Class | 1,102,468 | 4,200,941 | 2,495,523 | 120,648 | 131,110 | 1,301,380 | 11,126,801 |
$76,625,576 | $26,063,004 | $(126,428) | $4,751,357 | $222,373,330 | |||
(1) Distributions received includes distributions from net investment income and from capital gains, if any, from the underlying funds. |
58
July 31, 2009 | July 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 | $ 23,447,534 | $ 4,666,864 | $ (968,655) | $ 654,475 | 7,922,047 | $ 66,703,638 |
NT Growth Fund | |||||||
Institutional Class | 3,048,884 | 13,203,866 | 3,658,353 | (177,845) | 143,291 | 4,035,942 | 40,722,654 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 5,426,807 | 22,009,242 | 5,211,166 | (1,422,073) | 834,781 | 7,844,148 | 58,909,552 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 2,141,941 | 6,933,712 | 2,637,850 | (343,414) | 341,806 | 2,651,591 | 25,057,533 |
NT Small Company | |||||||
Fund Institutional Class | 1,128,158 | 3,199,914 | 1,074,271 | (360,984) | 37,741 | 1,503,665 | 10,841,428 |
NT Vista Fund | |||||||
Institutional Class | 1,643,618 | 6,168,317 | 1,840,476 | (367,173) | 1,612 | 2,232,357 | 18,729,477 |
Real Estate Fund | |||||||
Institutional Class | 367,873 | 1,646,469 | 1,080,554 | (152,059) | 91,037 | 419,636 | 6,949,164 |
High-Yield Fund | |||||||
Institutional Class | 2,206,883 | 6,210,351 | 562,761 | (62,128) | 1,357,605 | 3,197,121 | 19,054,842 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 2,088,019 | 14,449,274 | 2,370,679 | 1,085 | 1,028,768 | 3,137,017 | 36,985,431 |
NT Diversified Bond | |||||||
Fund Institutional Class | 7,755,907 | 56,095,182 | 9,831,407 | 84,732 | 4,233,410 | 12,149,820 | 131,825,545 |
Premium Money Market | |||||||
Fund Investor Class | 21,866,634 | 17,328,030 | 1,621,801 | — | 21,671 | 37,572,863 | 37,572,863 |
NT Emerging Markets | |||||||
Fund Institutional Class | 599,683 | 1,797,577 | 1,749,780 | 170,209 | 6,476 | 589,212 | 5,379,510 |
NT International Growth | |||||||
Fund Institutional Class | 2,761,408 | 11,078,505 | 5,655,315 | (899,016) | 327,412 | 3,526,193 | 30,148,953 |
International Bond Fund | |||||||
Institutional Class | 1,320,292 | 13,674,329 | 1,080,667 | (82,549) | 959,867 | 2,194,532 | 31,337,913 |
$197,242,302 | $43,041,944 | $(4,579,870) | $10,039,952 | $520,218,503 | |||
(1) Distributions received includes distributions from net investment income and from capital gains, if any, from the underlying funds. |
59
July 31, 2009 | July 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 | $ 16,993,955 | $ 1,199,326 | $ (2,548) | $ 284,163 | 3,878,540 | $ 32,657,309 |
NT Growth Fund | |||||||
Institutional Class | 1,274,756 | 11,713,068 | 1,524,737 | 38,878 | 70,375 | 2,314,648 | 23,354,798 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 2,008,361 | 16,105,515 | 1,053,965 | 14,417 | 379,111 | 4,017,766 | 30,173,425 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 852,435 | 6,677,462 | 505,605 | 14,129 | 175,090 | 1,539,491 | 14,548,185 |
NT Small Company | |||||||
Fund Institutional Class | 510,117 | 2,655,449 | 407,379 | 6,496 | 18,161 | 845,512 | 6,096,139 |
NT Vista Fund | |||||||
Institutional Class | 714,014 | 6,489,480 | 510,988 | (4,904) | 896 | 1,458,784 | 12,239,200 |
Real Estate Fund | |||||||
Institutional Class | 159,305 | 1,553,004 | 266,395 | 13,827 | 48,182 | 251,633 | 4,167,046 |
High-Yield Fund | |||||||
Institutional Class | 754,254 | 4,698,460 | 185,362 | (2,590) | 582,842 | 1,539,353 | 9,174,546 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 708,859 | 10,896,503 | 853,662 | (10,810) | 453,927 | 1,579,190 | 18,618,647 |
NT Diversified Bond | |||||||
Fund Institutional Class | 2,664,978 | 40,810,299 | 5,223,091 | (640) | 1,838,822 | 6,041,522 | 65,550,510 |
NT Emerging Markets | |||||||
Fund Institutional Class | 389,234 | 2,989,210 | 498,733 | 35,770 | 7,018 | 670,909 | 6,125,402 |
NT International Growth | |||||||
Fund Institutional Class | 1,162,977 | 9,703,087 | 1,513,648 | 61,155 | 166,096 | 2,143,671 | 18,328,388 |
International Bond Fund | |||||||
Institutional Class | 370,258 | 8,446,266 | 422,118 | (25,199) | 301,009 | 925,247 | 13,212,522 |
Premium Money Market | |||||||
Fund Investor Class | 5,659,565 | 7,798,562 | 276,355 | — | 6,318 | 13,181,772 | 13,181,772 |
$147,530,320 | $14,441,364 | $137,981 | $4,332,010 | $267,427,889 | |||
(1) Distributions received includes distributions from net investment income and from capital gains, if any, from the underlying funds. |
60
July 31, 2009 | July 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 | $ 24,810,006 | $ 4,632,398 | $(1,161,132) | $ 869,982 | 10,213,367 | $ 85,996,550 |
NT Growth Fund | |||||||
Institutional Class | 5,769,287 | 20,301,111 | 7,277,064 | (633,834) | 261,941 | 7,160,830 | 72,252,772 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 7,968,242 | 26,375,652 | 7,829,856 | (2,403,797) | 1,181,858 | 10,764,674 | 80,842,699 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 3,096,495 | 8,189,833 | 1,762,162 | (287,292) | 502,799 | 3,836,306 | 36,253,096 |
NT Small Company | |||||||
Fund Institutional Class | 2,718,383 | 5,109,161 | 3,772,461 | (1,238,312) | 87,810 | 3,111,305 | 22,432,510 |
NT Vista Fund | |||||||
Institutional Class | 3,018,698 | 10,557,280 | 2,297,696 | (542,918) | 3,115 | 4,127,302 | 34,628,066 |
Real Estate Fund | |||||||
Institutional Class | 703,700 | 2,312,309 | 2,704,274 | (737,029) | 172,845 | 735,902 | 12,186,531 |
High-Yield Fund | |||||||
Institutional Class | 2,529,543 | 6,785,537 | 669,268 | (72,614) | 1,550,240 | 3,602,657 | 21,471,837 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 2,456,206 | 16,929,116 | 3,047,503 | 3,181 | 1,191,140 | 3,661,210 | 43,165,662 |
NT Diversified Bond | |||||||
Fund Institutional Class | 9,068,819 | 68,353,142 | 16,266,648 | 160,316 | 4,932,307 | 14,013,841 | 152,050,171 |
NT Emerging Markets | |||||||
Fund Institutional Class | 1,813,244 | 5,320,849 | 3,682,660 | (686,202) | 23,927 | 2,075,983 | 18,953,721 |
NT International Growth | |||||||
Fund Institutional Class | 5,378,530 | 18,405,854 | 10,181,973 | (1,850,559) | 631,337 | 6,602,053 | 56,447,556 |
Premium Money Market | |||||||
Fund Investor Class | 21,493,826 | 13,979,554 | 1,588,937 | — | 20,695 | 33,884,443 | 33,884,443 |
International Bond Fund | |||||||
Institutional Class | 625,811 | 8,750,592 | 215,784 | (20,643) | 478,402 | 1,205,948 | 17,220,939 |
$236,179,996 | $65,928,684 | $(9,470,835) | $11,908,398 | $687,786,553 | |||
(1) Distributions received includes distributions from net investment income and from capital gains, if any, from the underlying funds. |
61
July 31, 2009 | July 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 | $ 14,181,404 | $ 668,537 | $ 5,183 | $ 238,454 | 3,234,860 | $ 27,237,518 |
NT Growth Fund | |||||||
Institutional Class | 1,380,021 | 13,945,161 | 982,004 | 7,676 | 83,633 | 2,696,847 | 27,211,184 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 1,748,426 | 15,127,846 | 741,612 | 6,318 | 345,250 | 3,655,988 | 27,456,472 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 669,431 | 5,399,675 | 571,548 | 9,570 | 137,732 | 1,205,850 | 11,395,280 |
NT Small Company | |||||||
Fund Institutional Class | 681,259 | 4,422,680 | 324,676 | 3,289 | 26,075 | 1,297,113 | 9,352,187 |
NT Vista Fund | |||||||
Institutional Class | 685,954 | 5,842,280 | 219,836 | (1,658) | 858 | 1,380,375 | 11,581,343 |
Real Estate Fund | |||||||
Institutional Class | 165,791 | 1,787,785 | 301,308 | 12,388 | 52,281 | 272,490 | 4,512,437 |
High-Yield Fund | |||||||
Institutional Class | 461,025 | 3,427,774 | 162,398 | (3,235) | 381,809 | 1,028,129 | 6,127,647 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 441,440 | 7,632,502 | 706,904 | (6,729) | 304,391 | 1,041,190 | 12,275,628 |
NT Diversified Bond | |||||||
Fund Institutional Class | 1,645,852 | 27,761,567 | 3,148,845 | 20,090 | 1,210,726 | 3,980,220 | 43,185,388 |
NT Emerging Markets | |||||||
Fund Institutional Class | 475,805 | 3,874,211 | 1,056,572 | 62,878 | 8,336 | 791,082 | 7,222,577 |
NT International Growth | |||||||
Fund Institutional Class | 1,239,635 | 11,553,918 | 1,313,005 | 57,294 | 192,668 | 2,451,952 | 20,964,188 |
Premium Money Market | |||||||
Fund Investor Class | 3,994,174 | 7,372,059 | 479,133 | — | 4,749 | 10,887,100 | 10,887,100 |
$122,328,862 | $10,676,378 | $173,064 | $2,986,962 | $219,408,949 | |||
(1) Distributions received includes distributions from net investment income and from capital gains, if any, from the underlying funds. |
62
July 31, 2009 | July 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 | $ 20,435,607 | $ 2,401,026 | $ (645,509) | $ 574,105 | 6,994,654 | $ 58,894,990 |
NT Growth Fund | |||||||
Institutional Class | 4,071,949 | 19,789,758 | 2,784,067 | (376,248) | 204,467 | 5,836,944 | 58,894,767 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 5,155,073 | 22,621,853 | 3,597,701 | (1,190,653) | 827,020 | 7,842,222 | 58,895,088 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 2,164,783 | 8,066,526 | 1,888,272 | (382,905) | 367,199 | 2,889,508 | 27,305,848 |
NT Small Company | |||||||
Fund Institutional Class | 1,819,959 | 5,777,780 | 1,764,125 | (553,144) | 63,610 | 2,511,719 | 18,109,495 |
NT Vista Fund | |||||||
Institutional Class | 2,216,542 | 9,308,481 | 1,188,231 | (300,044) | 2,349 | 3,266,102 | 27,402,595 |
Real Estate Fund | |||||||
Institutional Class | 508,499 | 2,346,361 | 1,977,115 | (767,582) | 134,345 | 596,089 | 9,871,240 |
High-Yield Fund | |||||||
Institutional Class | 1,094,665 | 4,174,579 | 393,284 | (40,331) | 722,901 | 1,757,667 | 10,475,696 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 1,029,010 | 10,408,634 | 1,681,835 | (9,054) | 561,663 | 1,785,605 | 21,052,281 |
NT Diversified Bond | |||||||
Fund Institutional Class | 3,846,878 | 38,659,400 | 7,387,693 | 82,158 | 2,299,997 | 6,814,188 | 73,933,936 |
NT Emerging Markets | |||||||
Fund Institutional Class | 1,582,020 | 6,159,937 | 3,079,316 | (813,375) | 22,837 | 2,026,730 | 18,504,049 |
NT International Growth | |||||||
Fund Institutional Class | 3,572,561 | 16,221,218 | 6,114,179 | (1,316,113) | 452,377 | 4,945,455 | 42,283,637 |
Premium Money Market | |||||||
Fund Investor Class | 4,854,883 | 6,489,981 | 497,183 | — | 5,251 | 10,847,681 | 10,847,681 |
$170,460,115 | $34,754,027 | $(6,312,800) | $6,238,121 | $436,471,303 | |||
(1) Distributions received includes distributions from net investment income and from capital gains, if any, from the underlying funds. |
63
July 31, 2009 | July 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 | $10,219,919 | $ 93,596 | $ (615) | $ 131,612 | 1,964,688 | $ 16,542,675 |
NT Growth Fund | |||||||
Institutional Class | 625,447 | 10,091,752 | 138,729 | (6,550) | 44,641 | 1,635,666 | 16,503,872 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 792,721 | 10,848,909 | 89,046 | (1,361) | 190,808 | 2,218,801 | 16,663,197 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 351,915 | 4,781,660 | 86,706 | 587 | 89,780 | 872,897 | 8,248,878 |
NT Small Company | |||||||
Fund Institutional Class | 255,667 | 2,589,559 | 67,346 | (778) | 10,902 | 633,818 | 4,569,830 |
NT Vista Fund | |||||||
Institutional Class | 360,843 | 5,236,235 | 101,975 | (2,583) | 545 | 993,260 | 8,333,451 |
Real Estate Fund | |||||||
Institutional Class | 82,564 | 1,371,223 | 89,179 | 1,353 | 30,956 | 175,161 | 2,900,673 |
High-Yield Fund | |||||||
Institutional Class | 135,139 | 1,455,241 | 17,976 | (398) | 131,064 | 384,438 | 2,291,249 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 127,038 | 3,173,058 | 143,990 | (1,796) | 104,349 | 389,283 | 4,589,644 |
NT Diversified Bond | |||||||
Fund Institutional Class | 477,499 | 11,436,863 | 762,964 | 4,984 | 414,656 | 1,489,500 | 16,161,072 |
NT Emerging Markets | |||||||
Fund Institutional Class | 283,654 | 3,675,409 | 321,609 | 4,433 | 6,645 | 665,679 | 6,077,653 |
NT International Growth | |||||||
Fund Institutional Class | 531,961 | 7,665,216 | 600,426 | (7,834) | 95,971 | 1,374,322 | 11,750,451 |
$72,545,044 | $2,513,542 | $(10,558) | $1,251,929 | $114,632,645 | |||
(1) Distributions received includes distributions from net investment income and from capital gains, if any, from the underlying funds. |
64
July 31, 2009 | July 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 | $13,822,320 | $ 1,490,036 | $ (394,539) | $ 340,955 | 4,296,331 | $ 36,175,108 |
NT Growth Fund | |||||||
Institutional Class | 2,369,786 | 13,362,581 | 1,596,673 | (190,244) | 121,647 | 3,585,241 | 36,175,080 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 3,049,782 | 15,546,709 | 2,479,595 | (803,824) | 500,170 | 4,898,582 | 36,788,350 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 1,309,619 | 5,843,239 | 807,300 | (177,609) | 231,020 | 1,885,622 | 17,819,126 |
NT Small Company | |||||||
Fund Institutional Class | 1,129,878 | 3,485,006 | 1,189,081 | (367,384) | 38,425 | 1,530,719 | 11,036,485 |
NT Vista Fund | |||||||
Institutional Class | 1,341,136 | 7,085,383 | 1,009,974 | (260,857) | 1,472 | 2,129,705 | 17,868,225 |
Real Estate Fund | |||||||
Institutional Class | 335,863 | 1,822,208 | 1,434,494 | (602,101) | 88,997 | 409,336 | 6,778,601 |
High-Yield Fund | |||||||
Institutional Class | 438,751 | 1,758,672 | 149,898 | (14,010) | 289,184 | 720,139 | 4,292,026 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 412,461 | 4,368,753 | 683,497 | (1,838) | 224,141 | 731,901 | 8,629,108 |
NT Diversified Bond | |||||||
Fund Institutional Class | 1,562,796 | 16,743,159 | 3,353,564 | 18,063 | 931,790 | 2,833,642 | 30,745,016 |
NT Emerging Markets | |||||||
Fund Institutional Class | 1,262,828 | 5,751,302 | 3,557,889 | (791,829) | 17,400 | 1,608,076 | 14,681,730 |
NT International Growth | |||||||
Fund Institutional Class | 1,938,885 | 9,919,232 | 3,057,815 | (717,203) | 252,710 | 2,851,206 | 24,377,809 |
$99,508,564 | $20,809,816 | $(4,303,375) | $3,037,911 | $245,366,664 | |||
(1) Distributions received includes distributions from net investment income and from capital gains, if any, from the underlying funds. |
65
July 31, 2009 | July 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 | $ 4,491,439 | $ 358,660 | $(21,881) | $ 35,591 | 637,861 | $ 5,370,792 |
NT Growth Fund | |||||||
Institutional Class | 123,025 | 4,454,552 | 392,649 | (15,520) | 10,762 | 532,286 | 5,370,762 |
NT Large Company | |||||||
Value Fund | |||||||
Institutional Class | 158,713 | 4,691,934 | 388,507 | (21,225) | 53,478 | 726,891 | 5,458,951 |
NT Mid Cap Value Fund | |||||||
Institutional Class | 68,107 | 2,087,250 | 159,613 | (3,373) | 24,058 | 279,715 | 2,643,311 |
NT Small Company | |||||||
Fund Institutional Class | 59,816 | 1,369,476 | 127,484 | (6,459) | 3,009 | 243,568 | 1,756,125 |
NT Vista Fund | |||||||
Institutional Class | 70,010 | 2,190,393 | 172,573 | (10,594) | 129 | 316,149 | 2,652,492 |
Real Estate Fund | |||||||
Institutional Class | 18,270 | 729,927 | 80,431 | 255 | 9,272 | 64,211 | 1,063,330 |
NT Emerging Markets | |||||||
Fund Institutional Class | 65,640 | 1,809,871 | 169,250 | 41 | 2,205 | 251,337 | 2,294,706 |
NT International Growth | |||||||
Fund Institutional Class | 92,205 | 2,773,860 | 272,497 | (12,571) | 20,642 | 390,856 | 3,341,821 |
High-Yield Fund | |||||||
Institutional Class | 19,414 | 434,230 | 32,213 | (629) | 26,170 | 88,965 | 530,233 |
Inflation-Adjusted Bond | |||||||
Fund Institutional Class | 18,277 | 937,091 | 106,069 | (36) | 20,988 | 90,154 | 1,062,921 |
NT Diversified Bond | |||||||
Fund Institutional Class | 68,273 | 3,459,988 | 550,666 | 1,465 | 81,844 | 344,140 | 3,733,920 |
$29,430,011 | $2,810,612 | $(90,527) | $288,148 | $35,279,364 | |||
(1) Distributions received includes distributions from net investment income and from capital gains, if any, from the underlying funds. |
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 July 31, 2010, the following LIVESTRONG Portfolio owned 25% or more of the total outstanding shares of the underlying funds:
LIVESTRONG 2025 Portfolio | |
NT Small Company Fund | 25% |
NT Vista Fund | 25% |
NT Diversified Bond Fund | 26% |
NT International Growth Fund | 26% |
As of July 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.
66
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 unadjusted 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 necessarily an indication of the risks associated with investing in these securities or other financial instruments.
As of July 31, 2010, the valuation inputs used to determine the fair value of the funds’ securities were classified as Level 1. The Schedule of Investments provides additional details on the funds’ portfolio holdings.
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.
Some of the underlying funds concentrate their investments in stocks of small companies. Because of this, the funds may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
9. Federal Tax Information
The tax character of distributions paid during the years ended July 31, 2010 and July 31, 2009 were as follows:
LIVESTRONG Income Portfolio | LIVESTRONG 2015 Portfolio | |||
2010 | 2009 | 2010 | 2009 | |
Distributions Paid From | ||||
Ordinary income | $4,153,131 | $2,620,426 | $7,283,633 | $7,270,766 |
Long-term capital gains | — | $507,585 | — | $2,187,036 |
LIVESTRONG 2020 Portfolio | LIVESTRONG 2025 Portfolio | |||
2010 | 2009 | 2010 | 2009 | |
Distributions Paid From | ||||
Ordinary income | $2,988,684 | $107,135 | $8,571,934 | $8,901,760 |
Long-term capital gains | $12,918 | — | — | $3,636,416 |
67
LIVESTRONG 2030 Portfolio | LIVESTRONG 2035 Portfolio | |||
2010 | 2009 | 2010 | 2009 | |
Distributions Paid From | ||||
Ordinary income | $2,037,212 | $65,520 | $4,299,270 | $4,337,204 |
Long-term capital gains | $7,605 | — | — | $2,471,072 |
LIVESTRONG 2040 Portfolio | LIVESTRONG 2045 Portfolio | |||
2010 | 2009 | 2010 | 2009 | |
Distributions Paid From | ||||
Ordinary income | $746,151 | $31,043 | $2,148,916 | $2,539,862 |
Long-term capital gains | $1,440 | — | — | $1,778,382 |
LIVESTRONG 2050 Portfolio | ||||
2010 | 2009 | |||
Distributions Paid From | ||||
Ordinary income | $139,987 | $19,544 | ||
Long-term capital gains | $1,737 | — |
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 July 31, 2010, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | |
Income Portfolio | 2015 Portfolio | 2020 Portfolio | 2025 Portfolio | 2030 Portfolio | |
Federal tax cost | |||||
of investments | $209,514,014 | $502,289,737 | $245,750,694 | $664,910,864 | $199,809,828 |
Gross tax appreciation | |||||
of investments | $12,859,316 | $17,928,766 | $21,677,195 | $22,894,043 | $19,599,121 |
Gross tax depreciation | |||||
of investments | — | — | — | (18,354) | — |
Net tax appreciation | |||||
(depreciation) | |||||
of investments | $12,859,316 | $17,928,766 | $21,677,195 | $22,875,689 | $19,599,121 |
Undistributed | |||||
ordinary income | $214,914 | $4,154,710 | $1,991,741 | $4,969,400 | $1,380,451 |
Accumulated | |||||
capital losses | $(2,398,875) | $(4,229,037) | — | $(4,555,154) | — |
Capital loss deferrals | — | — | — | $(415,354) | — |
68
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | |
2035 Portfolio | 2040 Portfolio | 2045 Portfolio | 2050 Portfolio | |
Federal tax cost of investments | $426,052,321 | $104,896,876 | $246,228,436 | $33,410,466 |
Gross tax appreciation of investments | $12,070,477 | $9,735,769 | $ 3,066,274 | $1,868,898 |
Gross tax depreciation of investments | (1,651,495) | — | (3,928,046) | — |
Net tax appreciation (depreciation) | ||||
of investments | $10,418,982 | $9,735,769 | $ (861,772) | $1,868,898 |
Undistributed ordinary income | $2,538,182 | $534,311 | $1,160,476 | $135,451 |
Accumulated long-term gains | — | — | — | $743 |
Accumulated capital losses | $(3,266,021) | — | $(2,088,899) | — |
Capital loss deferrals | $(121,256) | — | $(101,834) | — |
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.
The accumulated capital losses 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 as follows:
2017 | 2018 | |
LIVESTRONG Income Portfolio | $(176,528) | $(2,222,347) |
LIVESTRONG 2015 Portfolio | $(371,990) | $(3,857,047) |
LIVESTRONG 2020 Portfolio | — | — |
LIVESTRONG 2025 Portfolio | $(566,597) | $(3,988,557) |
LIVESTRONG 2030 Portfolio | — | — |
LIVESTRONG 2035 Portfolio | $(456,604) | $(2,809,417) |
LIVESTRONG 2040 Portfolio | — | — |
LIVESTRONG 2045 Portfolio | $(357,580) | $(1,731,319) |
LIVESTRONG 2050 Portfolio | — | — |
The capital loss deferrals represent net capital losses incurred in the nine-month period ended July 31, 2010. 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 succeeded Mr. Stowers as trustee of a trust that holds a greater-than-25% voting interest in ACC, the parent corporation of each fund’s advisor. Under the 1940 Act, this is presumed to represent control of ACC even though it is less than a majority interest. The change of trustee was considered a change of control of ACC and therefore also a change of control of each fund’s advisor even though there has been no change to their management and none is anticipated. The change of control resulted in the assignment of each fund’s investment advisory agreement. Under the 1940 Act, an assignment automatically terminated such agreement, making the approval of a new agreement necessary.
On February 18, 2010, the Board of Directors approved interim investment advisory agreements under which each fund was managed until new agreements were approved by fund shareholders. On March 29, 2010, the Board of Directors approved new investment advisory agreements. The interim agreements and the new agreements are substantially identical to the terminated agreements (with the exception of different effective and termination dates) and did not result in changes in the management of
69
American Century Investments, the funds, their investment objectives, fees or services provided. The new agreement for each fund was approved by shareholders at Special Meetings of Shareholders on June 16, 2010 and June 30, 2010. The new agreements went into effect on July 16, 2010. Management agreements for new share classes of the funds that were launched after February 16, 2010 did not terminate, have not been replaced by interim agreements, and did not require approval of new agreements.
11. Other Tax Information (Unaudited)
The following information is provided pursuant to provisions of the Internal Revenue Code.
The funds hereby designate up to the maximum amount allowable as qualified dividend income for the fiscal year ended July 31, 2010.
For corporate taxpayers, the funds hereby designate the following ordinary income distributions, or up to the maximum amount allowable, as qualified for the corporate dividends received deduction for the fiscal year ended July 31, 2010.
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG |
Income Portfolio | 2015 Portfolio | 2020 Portfolio | 2025 Portfolio | 2030 Portfolio |
$888,291 | $2,013,718 | $1,149,670 | $2,907,527 | $1,037,562 |
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | |
2035 Portfolio | 2040 Portfolio | 2045 Portfolio | 2050 Portfolio | |
$2,038,767 | $561,128 | $1,233,700 | $116,240 |
The funds hereby designate the following long-term capital gain distributions, or up to the maximum amount allowable, for the fiscal year ended July 31, 2010.
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG |
Income Portfolio | 2015 Portfolio | 2020 Portfolio | 2025 Portfolio | 2030 Portfolio |
— | — | $12,918 | — | $7,605 |
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | |
2035 Portfolio | 2040 Portfolio | 2045 Portfolio | 2050 Portfolio | |
— | $1,440 | — | $1,737 |
The funds hereby designate the following distributions as qualified short-term capital gains for purposes of Internal Revenue Code Section 871.
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG |
Income Portfolio | 2015 Portfolio | 2020 Portfolio | 2025 Portfolio | 2030 Portfolio |
— | — | $204,689 | — | $210,737 |
LIVESTRONG | LIVESTRONG | LIVESTRONG | LIVESTRONG | |
2035 Portfolio | 2040 Portfolio | 2045 Portfolio | 2050 Portfolio | |
— | $41,197 | — | $3,473 |
70
Financial Highlights |
LIVESTRONG Income Portfolio | ||||||
Investor Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.53 | $10.64 | $11.06 | $10.45 | $10.51 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.22 | 0.24 | 0.40 | 0.33 | 0.37 | |
Net Realized and Unrealized Gain (Loss) | 0.74 | (0.95) | (0.38) | 0.75 | (0.07) | |
Total From Investment Operations | 0.96 | (0.71) | 0.02 | 1.08 | 0.30 | |
Distributions | ||||||
From Net Investment Income | (0.22) | (0.31) | (0.42) | (0.32) | (0.35) | |
From Net Realized Gains | — | (0.09) | (0.02) | (0.15) | (0.01) | |
Total Distributions | (0.22) | (0.40) | (0.44) | (0.47) | (0.36) | |
Net Asset Value, End of Period | $10.27 | $9.53 | $10.64 | $11.06 | $10.45 | |
Total Return(2) | 10.15% | (6.44)% | 0.11% | 10.51% | 2.99% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(3) | 0.21% | 0.20% | 0.20% | 0.20% | 0.20% | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 2.19% | 2.64% | 3.61% | 3.03% | 3.51% | |
Portfolio Turnover Rate | 13% | 51% | 26% | 22% | 120% | |
Net Assets, End of Period (in thousands) | $102,497 | $95,441 | $49,378 | $44,109 | $27,374 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. |
See Notes to Financial Statements.
71
LIVESTRONG Income Portfolio | ||||||
Institutional Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.53 | $10.64 | $11.06 | $10.45 | $10.51 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.24 | 0.26 | 0.42 | 0.35 | 0.37 | |
Net Realized and Unrealized Gain (Loss) | 0.74 | (0.95) | (0.38) | 0.75 | (0.05) | |
Total From Investment Operations | 0.98 | (0.69) | 0.04 | 1.10 | 0.32 | |
Distributions | ||||||
From Net Investment Income | (0.24) | (0.33) | (0.44) | (0.34) | (0.37) | |
From Net Realized Gains | — | (0.09) | (0.02) | (0.15) | (0.01) | |
Total Distributions | (0.24) | (0.42) | (0.46) | (0.49) | (0.38) | |
Net Asset Value, End of Period | $10.27 | $9.53 | $10.64 | $11.06 | $10.45 | |
Total Return(2) | 10.37% | (6.25)% | 0.31% | 10.73% | 3.20% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(3) | 0.01% | 0.00%(4) | 0.00%(4) | 0.00%(4) | 0.00%(4) | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 2.39% | 2.84% | 3.81% | 3.23% | 3.71% | |
Portfolio Turnover Rate | 13% | 51% | 26% | 22% | 120% | |
Net Assets, End of Period (in thousands) | $39,202 | $25,088 | $9,737 | $8,285 | $4,409 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||||
(4) | Ratio of operating expenses to average net assets was less than 0.005%. |
See Notes to Financial Statements.
72
LIVESTRONG Income Portfolio | ||||||
A Class(1) | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.53 | $10.64 | $11.05 | $10.45 | $10.51 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(2) | 0.19 | 0.21 | 0.35 | 0.31 | 0.33 | |
Net Realized and Unrealized Gain (Loss) | 0.75 | (0.94) | (0.35) | 0.74 | (0.05) | |
Total From Investment Operations | 0.94 | (0.73) | — | 1.05 | 0.28 | |
Distributions | ||||||
From Net Investment Income | (0.20) | (0.29) | (0.39) | (0.30) | (0.33) | |
From Net Realized Gains | — | (0.09) | (0.02) | (0.15) | (0.01) | |
Total Distributions | (0.20) | (0.38) | (0.41) | (0.45) | (0.34) | |
Net Asset Value, End of Period | $10.27 | $9.53 | $10.64 | $11.05 | $10.45 | |
Total Return(3) | 9.87% | (6.67)% | (0.05)% | 10.13% | 2.83% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(4) | 0.46% | 0.45% | 0.45% | 0.45% | 0.45% | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 1.94% | 2.39% | 3.36% | 2.78% | 3.26% | |
Portfolio Turnover Rate | 13% | 51% | 26% | 22% | 120% | |
Net Assets, End of Period (in thousands) | $68,110 | $34,202 | $8,285 | $8,129 | $2,966 | |
(1) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. | |||||
(2) | Computed using average shares outstanding throughout the period. | |||||
(3) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. | |||||
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||||||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. |
See Notes to Financial Statements.
73
LIVESTRONG Income Portfolio | ||
C Class | ||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||
2010(1) | ||
Per-Share Data | ||
Net Asset Value, Beginning of Period | $10.15 | |
Income From Investment Operations | ||
Net Investment Income (Loss)(2) | 0.03 | |
Net Realized and Unrealized Gain (Loss) | 0.12 | |
Total From Investment Operations | 0.15 | |
Distributions | ||
From Net Investment Income | (0.03) | |
Net Asset Value, End of Period | $10.27 | |
Total Return(3) | 1.51% | |
Ratios/Supplemental Data | ||
Ratio of Operating Expenses to Average Net Assets(4) | 1.21%(5) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.77%(5) | |
Portfolio Turnover Rate | 13%(6) | |
Net Assets, End of Period (in thousands) | $35 | |
(1) | March 1, 2010 (commencement of sale) through July 31, 2010. | |
(2) | Computed using average shares outstanding throughout the period. | |
(3) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. | |
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |
(5) | Annualized. | |
(6) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
74
LIVESTRONG Income Portfolio | ||||||
R Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.52 | $10.63 | $11.05 | $10.44 | $10.50 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.16 | 0.18 | 0.30 | 0.27 | 0.26 | |
Net Realized and Unrealized Gain (Loss) | 0.75 | (0.93) | (0.34) | 0.76 | (0.01) | |
Total From Investment Operations | 0.91 | (0.75) | (0.04) | 1.03 | 0.25 | |
Distributions | ||||||
From Net Investment Income | (0.17) | (0.27) | (0.36) | (0.27) | (0.30) | |
From Net Realized Gains | — | (0.09) | (0.02) | (0.15) | (0.01) | |
Total Distributions | (0.17) | (0.36) | (0.38) | (0.42) | (0.31) | |
Net Asset Value, End of Period | $10.26 | $9.52 | $10.63 | $11.05 | $10.44 | |
Total Return(2) | 9.61% | (6.91)% | (0.40)% | 9.97% | 2.48% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(3) | 0.71% | 0.70% | 0.70% | 0.70% | 0.70% | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 1.69% | 2.14% | 3.11% | 2.53% | 3.01% | |
Portfolio Turnover Rate | 13% | 51% | 26% | 22% | 120% | |
Net Assets, End of Period (in thousands) | $12,527 | $3,466 | $351 | $112 | $37 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. |
See Notes to Financial Statements.
75
LIVESTRONG 2015 Portfolio | ||||||
Investor Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.87 | $11.39 | $11.91 | $11.09 | $10.93 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.22 | 0.26 | 0.43 | 0.32 | 0.37 | |
Net Realized and Unrealized Gain (Loss) | 0.86 | (1.29) | (0.49) | 1.04 | 0.11 | |
Total From Investment Operations | 1.08 | (1.03) | (0.06) | 1.36 | 0.48 | |
Distributions | ||||||
From Net Investment Income | (0.19) | (0.35) | (0.41) | (0.27) | (0.31) | |
From Net Realized Gains | — | (0.14) | (0.05) | (0.27) | (0.01) | |
Total Distributions | (0.19) | (0.49) | (0.46) | (0.54) | (0.32) | |
Net Asset Value, End of Period | $10.76 | $9.87 | $11.39 | $11.91 | $11.09 | |
Total Return(2) | 11.00% | (8.63)% | (0.67)% | 12.46% | 4.46% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(3) | 0.21% | 0.20% | 0.20% | 0.20% | 0.20% | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 2.11% | 2.78% | 3.62% | 2.74% | 3.27% | |
Portfolio Turnover Rate | 9% | 28% | 20% | 18% | 123% | |
Net Assets, End of Period (in thousands) | $284,172 | $217,149 | $161,838 | $139,725 | $89,431 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. |
See Notes to Financial Statements.
76
LIVESTRONG 2015 Portfolio | ||||||
Institutional Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.89 | $11.41 | $11.93 | $11.10 | $10.94 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.25 | 0.24 | 0.44 | 0.34 | 0.33 | |
Net Realized and Unrealized Gain (Loss) | 0.85 | (1.25) | (0.48) | 1.05 | 0.17 | |
Total From Investment Operations | 1.10 | (1.01) | (0.04) | 1.39 | 0.50 | |
Distributions | ||||||
From Net Investment Income | (0.21) | (0.37) | (0.43) | (0.29) | (0.33) | |
From Net Realized Gains | — | (0.14) | (0.05) | (0.27) | (0.01) | |
Total Distributions | (0.21) | (0.51) | (0.48) | (0.56) | (0.34) | |
Net Asset Value, End of Period | $10.78 | $9.89 | $11.41 | $11.93 | $11.10 | |
Total Return(2) | 11.20% | (8.42)% | (0.46)% | 12.77% | 4.67% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(3) | 0.01% | 0.00%(4) | 0.00%(4) | 0.00%(4) | 0.00%(4) | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 2.31% | 2.98% | 3.82% | 2.94% | 3.47% | |
Portfolio Turnover Rate | 9% | 28% | 20% | 18% | 123% | |
Net Assets, End of Period (in thousands) | $82,264 | $59,500 | $17,845 | $15,736 | $10,439 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||||
(4) | Ratio of operating expenses to average net assets was less than 0.005%. |
See Notes to Financial Statements.
77
LIVESTRONG 2015 Portfolio | ||||||
A Class(1) | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.86 | $11.37 | $11.89 | $11.07 | $10.91 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(2) | 0.19 | 0.25 | 0.38 | 0.30 | 0.31 | |
Net Realized and Unrealized Gain (Loss) | 0.86 | (1.29) | (0.47) | 1.03 | 0.14 | |
Total From Investment Operations | 1.05 | (1.04) | (0.09) | 1.33 | 0.45 | |
Distributions | ||||||
From Net Investment Income | (0.16) | (0.33) | (0.38) | (0.24) | (0.28) | |
From Net Realized Gains | — | (0.14) | (0.05) | (0.27) | (0.01) | |
Total Distributions | (0.16) | (0.47) | (0.43) | (0.51) | (0.29) | |
Net Asset Value, End of Period | $10.75 | $9.86 | $11.37 | $11.89 | $11.07 | |
Total Return(3) | 10.73% | (8.79)% | (0.93)% | 12.20% | 4.22% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(4) | 0.46% | 0.45% | 0.45% | 0.45% | 0.45% | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 1.86% | 2.53% | 3.37% | 2.49% | 3.02% | |
Portfolio Turnover Rate | 9% | 28% | 20% | 18% | 123% | |
Net Assets, End of Period (in thousands) | $115,945 | $40,386 | $24,384 | $19,270 | $9,556 | |
(1) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. | |||||
(2) | Computed using average shares outstanding throughout the period. | |||||
(3) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. | |||||
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||||||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. |
See Notes to Financial Statements.
78
LIVESTRONG 2015 Portfolio | ||
C Class | ||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||
2010(1) | ||
Per-Share Data | ||
Net Asset Value, Beginning of Period | $10.55 | |
Income From Investment Operations | ||
Net Investment Income (Loss)(2) | 0.04 | |
Net Realized and Unrealized Gain (Loss) | 0.13 | |
Total From Investment Operations | 0.17 | |
Net Asset Value, End of Period | $10.72 | |
Total Return(3) | 1.61% | |
Ratios/Supplemental Data | ||
Ratio of Operating Expenses to Average Net Assets(4) | 1.21%(5) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.83%(5) | |
Portfolio Turnover Rate | 9%(6) | |
Net Assets, End of Period (in thousands) | $182 | |
(1) | March 1, 2010 (commencement of sale) through July 31, 2010. | |
(2) | Computed using average shares outstanding throughout the period. | |
(3) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. | |
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |
(5) | Annualized. | |
(6) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
79
LIVESTRONG 2015 Portfolio | ||||||
R Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.84 | $11.36 | $11.88 | $11.06 | $10.90 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.16 | 0.18 | 0.39 | 0.25 | 0.19 | |
Net Realized and Unrealized Gain (Loss) | 0.87 | (1.25) | (0.51) | 1.05 | 0.23 | |
Total From Investment Operations | 1.03 | (1.07) | (0.12) | 1.30 | 0.42 | |
Distributions | ||||||
From Net Investment Income | (0.14) | (0.31) | (0.35) | (0.21) | (0.25) | |
From Net Realized Gains | — | (0.14) | (0.05) | (0.27) | (0.01) | |
Total Distributions | (0.14) | (0.45) | (0.40) | (0.48) | (0.26) | |
Net Asset Value, End of Period | $10.73 | $9.84 | $11.36 | $11.88 | $11.06 | |
Total Return(2) | 10.47% | (9.12)% | (1.19)% | 11.92% | 4.05% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(3) | 0.71% | 0.70% | 0.70% | 0.70% | 0.70% | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 1.61% | 2.28% | 3.12% | 2.24% | 2.77% | |
Portfolio Turnover Rate | 9% | 28% | 20% | 18% | 123% | |
Net Assets, End of Period (in thousands) | $37,643 | $13,316 | $4,165 | $3,187 | $351 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. |
See Notes to Financial Statements.
80
LIVESTRONG 2020 Portfolio | ||||
Investor Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010 | 2009 | 2008(1) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $8.47 | $9.49 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(2) | 0.19 | 0.13 | 0.03 | |
Net Realized and Unrealized Gain (Loss) | 0.80 | (1.03) | (0.54) | |
Total From Investment Operations | 0.99 | (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 | $9.30 | $8.47 | $9.49 | |
Total Return(3) | 11.69% | (9.38)% | (5.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(4) | 0.21% | 0.20% | 0.20%(5) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.99% | 1.70% | 1.89%(5) | |
Portfolio Turnover Rate | 8% | 53% | 0% | |
Net Assets, End of Period (in thousands) | $127,604 | $91,329 | $1,073 | |
(1) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(2) | Computed using average shares outstanding throughout the period. | |||
(3) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(5) | Annualized. |
See Notes to Financial Statements.
81
LIVESTRONG 2020 Portfolio | ||||
Institutional Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010 | 2009 | 2008(1) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $8.47 | $9.50 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(2) | 0.20 | 0.15 | 0.04 | |
Net Realized and Unrealized Gain (Loss) | 0.81 | (1.05) | (0.54) | |
Total From Investment Operations | 1.01 | (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 | $9.31 | $8.47 | $9.50 | |
Total Return(3) | 11.90% | (9.26)% | (5.00)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(4) | 0.01% | 0.00%(5) | 0.00%(5)(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 2.19% | 1.90% | 2.09%(6) | |
Portfolio Turnover Rate | 8% | 53% | 0% | |
Net Assets, End of Period (in thousands) | $44,304 | $21,532 | $16 | |
(1) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(2) | Computed using average shares outstanding throughout the period. | |||
(3) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(5) | Ratio of operating expenses to average net assets was less than 0.005%. | |||
(6) | Annualized. |
See Notes to Financial Statements.
82
LIVESTRONG 2020 Portfolio | ||||
A Class(1) | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010 | 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) | 0.15 | 0.15 | 0.04 | |
Net Realized and Unrealized Gain (Loss) | 0.81 | (1.08) | (0.55) | |
Total From Investment Operations | 0.96 | (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 | $9.28 | $8.45 | $9.49 | |
Total Return(4) | 11.43% | (9.72)% | (5.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.46% | 0.45% | 0.45%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.74% | 1.45% | 1.64%(6) | |
Portfolio Turnover Rate | 8% | 53% | 0% | |
Net Assets, End of Period (in thousands) | $80,483 | $3,882 | $6 | |
(1) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. | |||
(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, and does not reflect applicable sales charges. | |||
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||||
(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 2020 Portfolio | ||
C Class | ||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||
2010(1) | ||
Per-Share Data | ||
Net Asset Value, Beginning of Period | $9.12 | |
Income From Investment Operations | ||
Net Investment Income (Loss)(2) | 0.03 | |
Net Realized and Unrealized Gain (Loss) | 0.11 | |
Total From Investment Operations | 0.14 | |
Net Asset Value, End of Period | $9.26 | |
Total Return(3) | 1.54% | |
Ratios/Supplemental Data | ||
Ratio of Operating Expenses to Average Net Assets(4) | 1.21%(5) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.67%(5) | |
Portfolio Turnover Rate | 8%(6) | |
Net Assets, End of Period (in thousands) | $103 | |
(1) | March 1, 2010 (commencement of sale) through July 31, 2010. | |
(2) | Computed using average shares outstanding throughout the period. | |
(3) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. | |
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |
(5) | Annualized. | |
(6) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
84
LIVESTRONG 2020 Portfolio | ||||
R Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010 | 2009 | 2008(1) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $8.44 | $9.49 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(2) | 0.13 | 0.14 | 0.03 | |
Net Realized and Unrealized Gain (Loss) | 0.81 | (1.10) | (0.54) | |
Total From Investment Operations | 0.94 | (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 | $9.27 | $8.44 | $9.49 | |
Total Return(3) | 11.17% | (9.96)% | (5.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(4) | 0.71% | 0.70% | 0.70%(5) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.49% | 1.20% | 1.39%(5) | |
Portfolio Turnover Rate | 8% | 53% | 0% | |
Net Assets, End of Period (in thousands) | $14,928 | $3,274 | $6 | |
(1) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(2) | Computed using average shares outstanding throughout the period. | |||
(3) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(5) | Annualized. |
See Notes to Financial Statements.
85
LIVESTRONG 2025 Portfolio | ||||||
Investor Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.76 | $11.63 | $12.35 | $11.49 | $11.21 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.19 | 0.22 | 0.42 | 0.28 | 0.34 | |
Net Realized and Unrealized Gain (Loss) | 1.00 | (1.63) | (0.69) | 1.34 | 0.27 | |
Total From Investment Operations | 1.19 | (1.41) | (0.27) | 1.62 | 0.61 | |
Distributions | ||||||
From Net Investment Income | (0.17) | (0.30) | (0.40) | (0.24) | (0.31) | |
From Net Realized Gains | — | (0.16) | (0.05) | (0.52) | (0.02) | |
Total Distributions | (0.17) | (0.46) | (0.45) | (0.76) | (0.33) | |
Net Asset Value, End of Period | $10.78 | $9.76 | $11.63 | $12.35 | $11.49 | |
Total Return(2) | 12.19% | (11.64)% | (2.39)% | 14.45% | 5.48% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(3) | 0.21% | 0.20% | 0.20% | 0.20% | 0.20% | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 1.83% | 2.43% | 3.40% | 2.34% | 2.98% | |
Portfolio Turnover Rate | 10% | 22% | 18% | 18% | 120% | |
Net Assets, End of Period (in thousands) | $393,154 | $313,816 | $215,024 | $174,984 | $112,202 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. |
See Notes to Financial Statements.
86
LIVESTRONG 2025 Portfolio | ||||||
Institutional Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.77 | $11.64 | $12.37 | $11.51 | $11.23 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.21 | 0.24 | 0.43 | 0.31 | 0.37 | |
Net Realized and Unrealized Gain (Loss) | 1.00 | (1.63) | (0.69) | 1.34 | 0.26 | |
Total From Investment Operations | 1.21 | (1.39) | (0.26) | 1.65 | 0.63 | |
Distributions | ||||||
From Net Investment Income | (0.19) | (0.32) | (0.42) | (0.27) | (0.33) | |
From Net Realized Gains | — | (0.16) | (0.05) | (0.52) | (0.02) | |
Total Distributions | (0.19) | (0.48) | (0.47) | (0.79) | (0.35) | |
Net Asset Value, End of Period | $10.79 | $9.77 | $11.64 | $12.37 | $11.51 | |
Total Return(2) | 12.40% | (11.45)% | (2.27)% | 14.67% | 5.77% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(3) | 0.01% | 0.00%(4) | 0.00%(4) | 0.00%(4) | 0.00%(4) | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 2.03% | 2.63% | 3.60% | 2.54% | 3.18% | |
Portfolio Turnover Rate | 10% | 22% | 18% | 18% | 120% | |
Net Assets, End of Period (in thousands) | $103,770 | $78,031 | $44,611 | $44,250 | $31,399 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||||
(4) | Ratio of operating expenses to average net assets was less than 0.005%. |
See Notes to Financial Statements.
87
LIVESTRONG 2025 Portfolio | ||||||
A Class(1) | ||||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.74 | $11.61 | $12.34 | $11.48 | $11.19 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(2) | 0.16 | 0.21 | 0.35 | 0.26 | 0.29 | |
Net Realized and Unrealized Gain (Loss) | 1.01 | (1.64) | (0.66) | 1.33 | 0.30 | |
Total From Investment Operations | 1.17 | (1.43) | (0.31) | 1.59 | 0.59 | |
Distributions | ||||||
From Net Investment Income | (0.14) | (0.28) | (0.37) | (0.21) | (0.28) | |
From Net Realized Gains | — | (0.16) | (0.05) | (0.52) | (0.02) | |
Total Distributions | (0.14) | (0.44) | (0.42) | (0.73) | (0.30) | |
Net Asset Value, End of Period | $10.77 | $9.74 | $11.61 | $12.34 | $11.48 | |
Total Return(3) | 12.03% | (11.89)% | (2.73)% | 14.17% | 5.30% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(4) | 0.46% | 0.45% | 0.45% | 0.45% | 0.45% | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 1.58% | 2.18% | 3.15% | 2.09% | 2.73% | |
Portfolio Turnover Rate | 10% | 22% | 18% | 18% | 120% | |
Net Assets, End of Period (in thousands) | $143,045 | $49,723 | $28,073 | $17,076 | $7,404 | |
(1) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. | |||||
(2) | Computed using average shares outstanding throughout the period. | |||||
(3) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. | |||||
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||||||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. |
See Notes to Financial Statements.
88
LIVESTRONG 2025 Portfolio | ||
C Class | ||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||
2010(1) | ||
Per-Share Data | ||
Net Asset Value, Beginning of Period | $10.58 | |
Income From Investment Operations | ||
Net Investment Income (Loss)(2) | 0.02 | |
Net Realized and Unrealized Gain (Loss) | 0.14 | |
Total From Investment Operations | 0.16 | |
Net Asset Value, End of Period | $10.74 | |
Total Return(3) | 1.51% | |
Ratios/Supplemental Data | ||
Ratio of Operating Expenses to Average Net Assets(4) | 1.21%(5) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.43%(5) | |
Portfolio Turnover Rate | 10%(6) | |
Net Assets, End of Period (in thousands) | $373 | |
(1) | March 1, 2010 (commencement of sale) through July 31, 2010. | |
(2) | Computed using average shares outstanding throughout the period. | |
(3) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. | |
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |
(5) | Annualized. | |
(6) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
89
LIVESTRONG 2025 Portfolio | ||||||
R Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.73 | $11.60 | $12.32 | $11.46 | $11.18 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.14 | 0.16 | 0.36 | 0.22 | 0.19 | |
Net Realized and Unrealized Gain (Loss) | 0.99 | (1.62) | (0.70) | 1.34 | 0.36 | |
Total From Investment Operations | 1.13 | (1.46) | (0.34) | 1.56 | 0.55 | |
Distributions | ||||||
From Net Investment Income | (0.11) | (0.25) | (0.33) | (0.18) | (0.25) | |
From Net Realized Gains | — | (0.16) | (0.05) | (0.52) | (0.02) | |
Total Distributions | (0.11) | (0.41) | (0.38) | (0.70) | (0.27) | |
Net Asset Value, End of Period | $10.75 | $9.73 | $11.60 | $12.32 | $11.46 | |
Total Return(2) | 11.66% | (12.12)% | (2.90)% | 13.90% | 4.95% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(3) | 0.71% | 0.70% | 0.70% | 0.70% | 0.70% | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 1.33% | 1.93% | 2.90% | 1.84% | 2.48% | |
Portfolio Turnover Rate | 10% | 22% | 18% | 18% | 120% | |
Net Assets, End of Period (in thousands) | $47,433 | $16,344 | $2,746 | $1,378 | $545 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. |
See Notes to Financial Statements.
90
LIVESTRONG 2030 Portfolio | ||||
Investor Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010 | 2009 | 2008(1) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $8.04 | $9.39 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(2) | 0.14 | 0.10 | 0.02 | |
Net Realized and Unrealized Gain (Loss) | 0.89 | (1.36) | (0.63) | |
Total From Investment Operations | 1.03 | (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 | $8.95 | $8.04 | $9.39 | |
Total Return(3) | 12.90% | (13.30)% | (6.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(4) | 0.21% | 0.20% | 0.20%(5) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.63% | 1.48% | 1.49%(5) | |
Portfolio Turnover Rate | 7% | 43% | 4% | |
Net Assets, End of Period (in thousands) | $99,983 | $70,382 | $626 | |
(1) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(2) | Computed using average shares outstanding throughout the period. | |||
(3) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(5) | Annualized. |
See Notes to Financial Statements.
91
LIVESTRONG 2030 Portfolio | ||||
Institutional Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010 | 2009 | 2008(1) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $8.05 | $9.40 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(2) | 0.16 | 0.12 | 0.04 | |
Net Realized and Unrealized Gain (Loss) | 0.88 | (1.37) | (0.64) | |
Total From Investment Operations | 1.04 | (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 | $8.95 | $8.05 | $9.40 | |
Total Return(3) | 13.11% | (13.18)% | (6.00)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(4) | 0.01% | 0.00%(5) | 0.00%(5)(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.83% | 1.68% | 1.69%(6) | |
Portfolio Turnover Rate | 7% | 43% | 4% | |
Net Assets, End of Period (in thousands) | $33,647 | $17,528 | $6 | |
(1) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(2) | Computed using average shares outstanding throughout the period. | |||
(3) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(5) | Ratio of operating expenses to average net assets was less than 0.005%. | |||
(6) | Annualized. |
See Notes to Financial Statements.
92
LIVESTRONG 2030 Portfolio | ||||
A Class(1) | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010 | 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) | 0.12 | 0.11 | 0.03 | |
Net Realized and Unrealized Gain (Loss) | 0.88 | (1.39) | (0.64) | |
Total From Investment Operations | 1.00 | (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 | $8.93 | $8.03 | $9.39 | |
Total Return(4) | 12.51% | (13.53)% | (6.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.46% | 0.45% | 0.45%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.38% | 1.23% | 1.24%(6) | |
Portfolio Turnover Rate | 7% | 43% | 4% | |
Net Assets, End of Period (in thousands) | $71,159 | $3,378 | $6 | |
(1) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. | |||
(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, and does not reflect applicable sales charges. | |||
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||||
(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 2030 Portfolio | ||
C Class | ||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||
2010(1) | ||
Per-Share Data | ||
Net Asset Value, Beginning of Period | $8.80 | |
Income From Investment Operations | ||
Net Investment Income (Loss)(2) | 0.02 | |
Net Realized and Unrealized Gain (Loss) | 0.10 | |
Total From Investment Operations | 0.12 | |
Net Asset Value, End of Period | $8.92 | |
Total Return(3) | 1.36% | |
Ratios/Supplemental Data | ||
Ratio of Operating Expenses to Average Net Assets(4) | 1.21%(5) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.41%(5) | |
Portfolio Turnover Rate | 7%(6) | |
Net Assets, End of Period (in thousands) | $162 | |
(1) | March 1, 2010 (commencement of sale) through July 31, 2010. | |
(2) | Computed using average shares outstanding throughout the period. | |
(3) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. | |
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |
(5) | Annualized. | |
(6) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
94
LIVESTRONG 2030 Portfolio | ||||
R Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010 | 2009 | 2008(1) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $8.02 | $9.39 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(2) | 0.10 | 0.12 | 0.02 | |
Net Realized and Unrealized Gain (Loss) | 0.88 | (1.42) | (0.63) | |
Total From Investment Operations | 0.98 | (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 | $8.92 | $8.02 | $9.39 | |
Total Return(3) | 12.24% | (13.76)% | (6.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(4) | 0.71% | 0.70% | 0.70%(5) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.13% | 0.98% | 0.99%(5) | |
Portfolio Turnover Rate | 7% | 43% | 4% | |
Net Assets, End of Period (in thousands) | $14,455 | $3,573 | $6 | |
(1) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(2) | Computed using average shares outstanding throughout the period. | |||
(3) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(5) | Annualized. |
See Notes to Financial Statements.
95
LIVESTRONG 2035 Portfolio | ||||||
Investor Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.74 | $12.10 | $13.09 | $11.85 | $11.43 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.17 | 0.19 | 0.41 | 0.24 | 0.31 | |
Net Realized and Unrealized Gain (Loss) | 1.15 | (2.13) | (0.95) | 1.71 | 0.42 | |
Total From Investment Operations | 1.32 | (1.94) | (0.54) | 1.95 | 0.73 | |
Distributions | ||||||
From Net Investment Income | (0.14) | (0.24) | (0.40) | (0.19) | (0.30) | |
From Net Realized Gains | — | (0.18) | (0.05) | (0.52) | (0.01) | |
Total Distributions | (0.14) | (0.42) | (0.45) | (0.71) | (0.31) | |
Net Asset Value, End of Period | $10.92 | $9.74 | $12.10 | $13.09 | $11.85 | |
Total Return(2) | 13.58% | (15.54)% | (4.33)% | 16.86% | 6.45% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(3) | 0.21% | 0.20% | 0.20% | 0.20% | 0.20% | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 1.54% | 2.12% | 3.19% | 1.87% | 2.61% | |
Portfolio Turnover Rate | 8% | 18% | 16% | 23% | 141% | |
Net Assets, End of Period (in thousands) | $231,716 | $170,455 | $128,815 | $91,220 | $52,206 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. |
See Notes to Financial Statements.
96
LIVESTRONG 2035 Portfolio | ||||||
Institutional Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.76 | $12.12 | $13.11 | $11.87 | $11.45 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.19 | 0.20 | 0.44 | 0.26 | 0.30 | |
Net Realized and Unrealized Gain (Loss) | 1.14 | (2.12) | (0.95) | 1.72 | 0.45 | |
Total From Investment Operations | 1.33 | (1.92) | (0.51) | 1.98 | 0.75 | |
Distributions | ||||||
From Net Investment Income | (0.16) | (0.26) | (0.43) | (0.22) | (0.32) | |
From Net Realized Gains | — | (0.18) | (0.05) | (0.52) | (0.01) | |
Total Distributions | (0.16) | (0.44) | (0.48) | (0.74) | (0.33) | |
Net Asset Value, End of Period | $10.93 | $9.76 | $12.12 | $13.11 | $11.87 | |
Total Return(2) | 13.68% | (15.34)% | (4.13)% | 17.07% | 6.66% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(3) | 0.01% | 0.00%(4) | 0.00%(4) | 0.00%(4) | 0.00%(4) | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 1.74% | 2.32% | 3.39% | 2.07% | 2.81% | |
Portfolio Turnover Rate | 8% | 18% | 16% | 23% | 141% | |
Net Assets, End of Period (in thousands) | $66,385 | $46,544 | $24,120 | $22,314 | $11,104 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||||
(4) | Ratio of operating expenses to average net assets was less than 0.005%. |
See Notes to Financial Statements.
97
LIVESTRONG 2035 Portfolio | ||||||
A Class(1) | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.73 | $12.09 | $13.08 | $11.83 | $11.42 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(2) | 0.14 | 0.17 | 0.35 | 0.21 | 0.26 | |
Net Realized and Unrealized Gain (Loss) | 1.14 | (2.13) | (0.92) | 1.72 | 0.43 | |
Total From Investment Operations | 1.28 | (1.96) | (0.57) | 1.93 | 0.69 | |
Distributions | ||||||
From Net Investment Income | (0.11) | (0.22) | (0.37) | (0.16) | (0.27) | |
From Net Realized Gains | — | (0.18) | (0.05) | (0.52) | (0.01) | |
Total Distributions | (0.11) | (0.40) | (0.42) | (0.68) | (0.28) | |
Net Asset Value, End of Period | $10.90 | $9.73 | $12.09 | $13.08 | $11.83 | |
Total Return(3) | 13.21% | (15.77)% | (4.58)% | 16.67% | 6.10% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(4) | 0.46% | 0.45% | 0.45% | 0.45% | 0.45% | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 1.29% | 1.87% | 2.94% | 1.62% | 2.36% | |
Portfolio Turnover Rate | 8% | 18% | 16% | 23% | 141% | |
Net Assets, End of Period (in thousands) | $103,002 | $32,896 | $19,145 | $13,378 | $5,224 | |
(1) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. | |||||
(2) | Computed using average shares outstanding throughout the period. | |||||
(3) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. | |||||
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||||||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. |
See Notes to Financial Statements.
98
LIVESTRONG 2035 Portfolio | ||
C Class | ||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||
2010(1) | ||
Per-Share Data | ||
Net Asset Value, Beginning of Period | $10.74 | |
Income From Investment Operations | ||
Net Investment Income (Loss)(2) | 0.01 | |
Net Realized and Unrealized Gain (Loss) | 0.12 | |
Total From Investment Operations | 0.13 | |
Net Asset Value, End of Period | $10.87 | |
Total Return(3) | 1.21% | |
Ratios/Supplemental Data | ||
Ratio of Operating Expenses to Average Net Assets(4) | 1.21%(5) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.29%(5) | |
Portfolio Turnover Rate | 8%(6) | |
Net Assets, End of Period (in thousands) | $86 | |
(1) | March 1, 2010 (commencement of sale) through July 31, 2010. | |
(2) | Computed using average shares outstanding throughout the period. | |
(3) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. | |
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |
(5) | Annualized. | |
(6) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
99
LIVESTRONG 2035 Portfolio | ||||||
R Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.72 | $12.07 | $13.06 | $11.82 | $11.40 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.11 | 0.14 | 0.43 | 0.18 | 0.16 | |
Net Realized and Unrealized Gain (Loss) | 1.15 | (2.11) | (1.03) | 1.71 | 0.51 | |
Total From Investment Operations | 1.26 | (1.97) | (0.60) | 1.89 | 0.67 | |
Distributions | ||||||
From Net Investment Income | (0.09) | (0.20) | (0.34) | (0.13) | (0.24) | |
From Net Realized Gains | — | (0.18) | (0.05) | (0.52) | (0.01) | |
Total Distributions | (0.09) | (0.38) | (0.39) | (0.65) | (0.25) | |
Net Asset Value, End of Period | $10.89 | $9.72 | $12.07 | $13.06 | $11.82 | |
Total Return(2) | 12.93% | (15.92)% | (4.84)% | 16.30% | 5.93% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(3) | 0.71% | 0.70% | 0.70% | 0.70% | 0.70% | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 1.04% | 1.62% | 2.69% | 1.37% | 2.11% | |
Portfolio Turnover Rate | 8% | 18% | 16% | 23% | 141% | |
Net Assets, End of Period (in thousands) | $35,276 | $10,785 | $2,178 | $975 | $296 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. |
See Notes to Financial Statements.
100
LIVESTRONG 2040 Portfolio | ||||
Investor Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010 | 2009 | 2008(1) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $7.75 | $9.29 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(2) | 0.12 | 0.09 | 0.01 | |
Net Realized and Unrealized Gain (Loss) | 0.95 | (1.54) | (0.72) | |
Total From Investment Operations | 1.07 | (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 | $8.72 | $7.75 | $9.29 | |
Total Return(3) | 13.80% | (15.53)% | (7.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(4) | 0.21% | 0.20% | 0.20%(5) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.40% | 1.38% | 1.10%(5) | |
Portfolio Turnover Rate | 3% | 25% | 3% | |
Net Assets, End of Period (in thousands) | $41,985 | $24,386 | $831 | |
(1) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(2) | Computed using average shares outstanding throughout the period. | |||
(3) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(5) | Annualized. |
See Notes to Financial Statements.
101
LIVESTRONG 2040 Portfolio | ||||
Institutional Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010 | 2009 | 2008(1) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $7.75 | $9.29 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(2) | 0.14 | 0.11 | 0.03 | |
Net Realized and Unrealized Gain (Loss) | 0.96 | (1.56) | (0.74) | |
Total From Investment Operations | 1.10 | (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 | $8.73 | $7.75 | $9.29 | |
Total Return(3) | 14.16% | (15.43)% | (7.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(4) | 0.01% | 0.00%(5) | 0.00%(5)(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.60% | 1.58% | 1.30%(6) | |
Portfolio Turnover Rate | 3% | 25% | 3% | |
Net Assets, End of Period (in thousands) | $22,593 | $9,846 | $6 | |
(1) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(2) | Computed using average shares outstanding throughout the period. | |||
(3) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(5) | Ratio of operating expenses to average net assets was less than 0.005%. | |||
(6) | Annualized. |
See Notes to Financial Statements.
102
LIVESTRONG 2040 Portfolio | ||||
A Class(1) | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010 | 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) | 0.09 | 0.09 | 0.02 | |
Net Realized and Unrealized Gain (Loss) | 0.97 | (1.57) | (0.73) | |
Total From Investment Operations | 1.06 | (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 | $8.71 | $7.73 | $9.29 | |
Total Return(4) | 13.68% | (15.87)% | (7.10)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.46% | 0.45% | 0.45%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.15% | 1.13% | 0.85%(6) | |
Portfolio Turnover Rate | 3% | 25% | 3% | |
Net Assets, End of Period (in thousands) | $42,212 | $1,551 | $6 | |
(1) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. | |||
(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, and does not reflect applicable sales charges. | |||
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||||
(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.
103
LIVESTRONG 2040 Portfolio | ||
C Class | ||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||
2010(1) | ||
Per-Share Data | ||
Net Asset Value, Beginning of Period | $8.60 | |
Income From Investment Operations | ||
Net Investment Income (Loss)(2) | —(3) | |
Net Realized and Unrealized Gain (Loss) | 0.08 | |
Total From Investment Operations | 0.08 | |
Net Asset Value, End of Period | $8.68 | |
Total Return(4) | 0.93% | |
Ratios/Supplemental Data | ||
Ratio of Operating Expenses to Average Net Assets(5) | 1.21(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.12%(6) | |
Portfolio Turnover Rate | 3%(7) | |
Net Assets, End of Period (in thousands) | $68 | |
(1) | March 1, 2010 (commencement of sale) through July 31, 2010. | |
(2) | Computed using average shares outstanding throughout the period. | |
(3) | Per-share amount was less than $0.005. | |
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges | |
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |
(6) | Annualized. | |
(7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
104
LIVESTRONG 2040 Portfolio | ||||
R Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010 | 2009 | 2008(1) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $7.72 | $9.28 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(2) | 0.08 | 0.10 | 0.02 | |
Net Realized and Unrealized Gain (Loss) | 0.95 | (1.59) | (0.74) | |
Total From Investment Operations | 1.03 | (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 | $8.69 | $7.72 | $9.28 | |
Total Return(3) | 13.28% | (16.01)% | (7.20)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(4) | 0.71% | 0.70% | 0.70%(5) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.90% | 0.88% | 0.60%(5) | |
Portfolio Turnover Rate | 3% | 25% | 3% | |
Net Assets, End of Period (in thousands) | $7,773 | $2,347 | $6 | |
(1) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(2) | Computed using average shares outstanding throughout the period. | |||
(3) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(5) | Annualized. |
See Notes to Financial Statements.
105
LIVESTRONG 2045 Portfolio | ||||||
Investor Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.59 | $12.24 | $13.40 | $11.96 | $11.54 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.14 | 0.18 | 0.42 | 0.22 | 0.31 | |
Net Realized and Unrealized Gain (Loss) | 1.22 | (2.41) | (1.12) | 1.92 | 0.46 | |
Total From Investment Operations | 1.36 | (2.23) | (0.70) | 2.14 | 0.77 | |
Distributions | ||||||
From Net Investment Income | (0.13) | (0.22) | (0.41) | (0.17) | (0.32) | |
From Net Realized Gains | — | (0.20) | (0.05) | (0.53) | (0.03) | |
Total Distributions | (0.13) | (0.42) | (0.46) | (0.70) | (0.35) | |
Net Asset Value, End of Period | $10.82 | $9.59 | $12.24 | $13.40 | $11.96 | |
Total Return(2) | 14.16% | (17.74)% | (5.53)% | 18.23% | 6.76% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(3) | 0.21% | 0.20% | 0.20% | 0.20% | 0.20% | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 1.35% | 1.99% | 3.19% | 1.62% | 2.62% | |
Portfolio Turnover Rate | 9% | 18% | 18% | 25% | 137% | |
Net Assets, End of Period (in thousands) | $113,447 | $85,095 | $72,649 | $48,229 | $22,437 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. |
See Notes to Financial Statements.
106
LIVESTRONG 2045 Portfolio | ||||||
Institutional Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.60 | $12.25 | $13.42 | $11.98 | $11.56 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.16 | 0.20 | 0.44 | 0.23 | 0.35 | |
Net Realized and Unrealized Gain (Loss) | 1.22 | (2.41) | (1.12) | 1.93 | 0.44 | |
Total From Investment Operations | 1.38 | (2.21) | (0.68) | 2.16 | 0.79 | |
Distributions | ||||||
From Net Investment Income | (0.15) | (0.24) | (0.44) | (0.19) | (0.34) | |
From Net Realized Gains | — | (0.20) | (0.05) | (0.53) | (0.03) | |
Total Distributions | (0.15) | (0.44) | (0.49) | (0.72) | (0.37) | |
Net Asset Value, End of Period | $10.83 | $9.60 | $12.25 | $13.42 | $11.98 | |
Total Return(2) | 14.48% | (17.56)% | (5.40)% | 18.44% | 6.96% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(3) | 0.01% | 0.00%(4) | 0.00%(4) | 0.00%(4) | 0.00%(4) | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 1.55% | 2.19% | 3.39% | 1.82% | 2.82% | |
Portfolio Turnover Rate | 9% | 18% | 18% | 25% | 137% | |
Net Assets, End of Period (in thousands) | $57,836 | $34,639 | $31,054 | $28,483 | $13,397 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||||
(4) | Ratio of operating expenses to average net assets was less than 0.005%. |
See Notes to Financial Statements.
107
LIVESTRONG 2045 Portfolio | ||||||
A Class(1) | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.57 | $12.22 | $13.38 | $11.94 | $11.53 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(2) | 0.11 | 0.15 | 0.39 | 0.18 | 0.20 | |
Net Realized and Unrealized Gain (Loss) | 1.22 | (2.40) | (1.13) | 1.92 | 0.53 | |
Total From Investment Operations | 1.33 | (2.25) | (0.74) | 2.10 | 0.73 | |
Distributions | ||||||
From Net Investment Income | (0.10) | (0.20) | (0.37) | (0.13) | (0.29) | |
From Net Realized Gains | — | (0.20) | (0.05) | (0.53) | (0.03) | |
Total Distributions | (0.10) | (0.40) | (0.42) | (0.66) | (0.32) | |
Net Asset Value, End of Period | $10.80 | $9.57 | $12.22 | $13.38 | $11.94 | |
Total Return(3) | 13.90% | (17.98)% | (5.78)% | 17.96% | 6.51% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(4) | 0.46% | 0.45% | 0.45% | 0.45% | 0.45% | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 1.10% | 1.74% | 2.94% | 1.37% | 2.37% | |
Portfolio Turnover Rate | 9% | 18% | 18% | 25% | 137% | |
Net Assets, End of Period (in thousands) | $56,695 | $17,537 | $11,411 | $9,091 | $4,177 | |
(1) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. | |||||
(2) | Computed using average shares outstanding throughout the period. | |||||
(3) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. | |||||
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||||||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. |
See Notes to Financial Statements.
108
LIVESTRONG 2045 Portfolio | ||
C Class | ||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||
2010(1) | ||
Per-Share Data | ||
Net Asset Value, Beginning of Period | $10.67 | |
Income From Investment Operations | ||
Net Investment Income (Loss)(2) | 0.01 | |
Net Realized and Unrealized Gain (Loss) | 0.10 | |
Total From Investment Operations | 0.11 | |
Net Asset Value, End of Period | $10.78 | |
Total Return(3) | 1.03% | |
Ratios/Supplemental Data | ||
Ratio of Operating Expenses to Average Net Assets(4) | 1.21%(5) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.14%(5) | |
Portfolio Turnover Rate | 9%(6) | |
Net Assets, End of Period (in thousands) | $59 | |
(1) | March 1, 2010 (commencement of sale) through July 31, 2010. | |
(2) | Computed using average shares outstanding throughout the period. | |
(3) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. | |
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||
(4) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |
(5) | Annualized. | |
(6) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
109
LIVESTRONG 2045 Portfolio | ||||||
R Class | ||||||
For a Share Outstanding Throughout the Years Ended July 31 | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||
Per-Share Data | ||||||
Net Asset Value, Beginning of Period | $9.56 | $12.21 | $13.36 | $11.93 | $11.51 | |
Income From Investment Operations | ||||||
Net Investment Income (Loss)(1) | 0.09 | 0.11 | 0.38 | 0.12 | 0.12 | |
Net Realized and Unrealized Gain (Loss) | 1.21 | (2.38) | (1.14) | 1.94 | 0.59 | |
Total From Investment Operations | 1.30 | (2.27) | (0.76) | 2.06 | 0.71 | |
Distributions | ||||||
From Net Investment Income | (0.07) | (0.18) | (0.34) | (0.10) | (0.26) | |
From Net Realized Gains | — | (0.20) | (0.05) | (0.53) | (0.03) | |
Total Distributions | (0.07) | (0.38) | (0.39) | (0.63) | (0.29) | |
Net Asset Value, End of Period | $10.79 | $9.56 | $12.21 | $13.36 | $11.93 | |
Total Return(2) | 13.63% | (18.20)% | (5.96)% | 17.58% | 6.24% | |
Ratios/Supplemental Data | ||||||
Ratio of Operating Expenses | ||||||
to Average Net Assets(3) | 0.71% | 0.70% | 0.70% | 0.70% | 0.70% | |
Ratio of Net Investment Income (Loss) | ||||||
to Average Net Assets | 0.85% | 1.49% | 2.69% | 1.12% | 2.12% | |
Portfolio Turnover Rate | 9% | 18% | 18% | 25% | 137% | |
Net Assets, End of Period (in thousands) | $17,327 | $4,966 | $1,403 | $753 | $165 | |
(1) | Computed using average shares outstanding throughout the period. | |||||
(2) | 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. Total returns are calculated based on the net asset value of the last business day. | ||||||
(3) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. |
See Notes to Financial Statements.
110
LIVESTRONG 2050 Portfolio | ||||
Investor Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010 | 2009 | 2008(1) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $7.46 | $9.23 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(2) | 0.10 | 0.10 | 0.02 | |
Net Realized and Unrealized Gain (Loss) | 0.97 | (1.80) | (0.79) | |
Total From Investment Operations | 1.07 | (1.70) | (0.77) | |
Distributions | ||||
From Net Investment Income | (0.08) | (0.07) | — | |
From Net Realized Gains | —(3) | — | — | |
Total Distributions | (0.08) | (0.07) | — | |
Net Asset Value, End of Period | $8.45 | $7.46 | $9.23 | |
Total Return(4) | 14.33% | (18.30)% | (7.70)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.22% | 0.20% | 0.20%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.17% | 1.57% | 1.16%(6) | |
Portfolio Turnover Rate | 13% | 26% | 3% | |
Net Assets, End of Period (in thousands) | $10,225 | $3,454 | $464 | |
(1) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(2) | Computed using average shares outstanding throughout the period. | |||
(3) | Per-share amount was less than $0.005. | |||
(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. Total returns are calculated based on the net asset value of the last business day. | ||||
(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.
111
LIVESTRONG 2050 Portfolio | ||||
Institutional Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010 | 2009 | 2008(1) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $7.47 | $9.23 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(2) | 0.12 | 0.12 | 0.03 | |
Net Realized and Unrealized Gain (Loss) | 0.96 | (1.80) | (0.80) | |
Total From Investment Operations | 1.08 | (1.68) | (0.77) | |
Distributions | ||||
From Net Investment Income | (0.09) | (0.08) | — | |
From Net Realized Gains | —(3) | — | — | |
Total Distributions | (0.09) | (0.08) | — | |
Net Asset Value, End of Period | $8.46 | $7.47 | $9.23 | |
Total Return(4) | 14.54% | (18.09)% | (7.70)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.02% | 0.00%(6) | 0.00%(6)(7) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 1.37% | 1.77% | 1.36%(7) | |
Portfolio Turnover Rate | 13% | 26% | 3% | |
Net Assets, End of Period (in thousands) | $8,482 | $3,179 | $6 | |
(1) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(2) | Computed using average shares outstanding throughout the period. | |||
(3) | Per-share amount was less than $0.005. | |||
(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. Total returns are calculated based on the net asset value of the last business day. | ||||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |||
(6) | Ratio of operating expenses to average net assets was less than 0.005%. | |||
(7) | Annualized. |
See Notes to Financial Statements.
112
LIVESTRONG 2050 Portfolio | ||||
A Class(1) | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010 | 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) | 0.07 | 0.07 | 0.02 | |
Net Realized and Unrealized Gain (Loss) | 0.97 | (1.79) | (0.79) | |
Total From Investment Operations | 1.04 | (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 | $8.44 | $7.45 | $9.23 | |
Total Return(5) | 14.06% | (18.52)% | (7.70)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(6) | 0.47% | 0.45% | 0.45%(7) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.92% | 1.32% | 0.91%(7) | |
Portfolio Turnover Rate | 13% | 26% | 3% | |
Net Assets, End of Period (in thousands) | $13,463 | $336 | $6 | |
(1) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. | |||
(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, and does not reflect applicable sales charges. | |||
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||||
(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.
113
LIVESTRONG 2050 Portfolio | ||
C Class | ||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||
2010(1) | ||
Per-Share Data | ||
Net Asset Value, Beginning of Period | $8.35 | |
Income From Investment Operations | ||
Net Investment Income (Loss)(2) | —(3) | |
Net Realized and Unrealized Gain (Loss) | 0.07 | |
Total From Investment Operations | 0.07 | |
Net Asset Value, End of Period | $8.42 | |
Total Return(4) | 0.84% | |
Ratios/Supplemental Data | ||
Ratio of Operating Expenses to Average Net Assets(5) | 1.22%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.06%(6) | |
Portfolio Turnover Rate | 13%(7) | |
Net Assets, End of Period (in thousands) | $32 | |
(1) | March 1, 2010 (commencement of sale) through July 31, 2010. | |
(2) | Computed using average shares outstanding throughout the period. | |
(3) | Per-share amount was less than $0.005. | |
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. | |
Total returns for periods less than one year are not annualized. Total returns are calculated based on the net asset value of the last business day. | ||
(5) | Ratio of operating expenses to average net assets does not include any expenses of the underlying funds. | |
(6) | Annualized. | |
(7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
114
LIVESTRONG 2050 Portfolio | ||||
R Class | ||||
For a Share Outstanding Throughout the Years Ended July 31 (except as noted) | ||||
2010 | 2009 | 2008(1) | ||
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $7.44 | $9.22 | $10.00 | |
Income From Investment Operations | ||||
Net Investment Income (Loss)(2) | 0.06 | 0.08 | 0.02 | |
Net Realized and Unrealized Gain (Loss) | 0.96 | (1.81) | (0.80) | |
Total From Investment Operations | 1.02 | (1.73) | (0.78) | |
Distributions | ||||
From Net Investment Income | (0.03) | (0.05) | — | |
From Net Realized Gains | —(3) | — | — | |
Total Distributions | (0.03) | (0.05) | — | |
Net Asset Value, End of Period | $8.43 | $7.44 | $9.22 | |
Total Return(4) | 13.79% | (18.66)% | (7.80)% | |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets(5) | 0.73% | 0.70% | 0.70%(6) | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.66% | 1.07% | 0.66%(6) | |
Portfolio Turnover Rate | 13% | 26% | 3% | |
Net Assets, End of Period (in thousands) | $3,076 | $186 | $6 | |
(1) | May 30, 2008 (fund inception) through July 31, 2008. | |||
(2) | Computed using average shares outstanding throughout the period. | |||
(3) | Per-share amount was less than $0.005. | |||
(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. Total returns are calculated based on the net asset value of the last business day. | ||||
(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.
115
Report of Independent Registered Public Accounting Firm |
The Board of Directors and Shareholders,
American Century Asset Allocation Portfolios, Inc.:
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of 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 Portfolio, nine of the portfolios constituting American Century Asset Allocation Portfolios, Inc. (the “Corporation”), as of July 31, 2010, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Corporation’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Corporation is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing t he accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2010, by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the respective financial positions of 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 Portfolio of American Century Asset Allocation Portfolios, Inc. as of July 31, 2010, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Kansas City, Missouri
September 17, 2010
116
Proxy Voting Results |
A special meeting of shareholders was held on June 16, 2010 and June 30, 2010, to vote on the following proposals. Each proposal received the required number of votes and was adopted. A summary of voting results is listed below each proposal.
Proposal 1:
To elect one Director to the Board of Directors of American Century Asset Allocation Portfolios, Inc. (the proposal was voted on by all shareholders of funds issued by American Century Asset Allocation Portfolios, Inc.):
John R. Whitten | For: | 2,670,242,979 |
Withhold: | 39,748,764 | |
Abstain: | 0 | |
Broker Non-Vote: | 0 |
The other directors whose term of office continued after the meeting include Jonathan S. Thomas, Thomas A. Brown, Andrea C. Hall, James A. Olson, Donald H. Pratt, and M. Jeannine Strandjord.
Proposal 2:
To approve a management agreement between the fund and American Century Investment Management, Inc.:
LIVESTRONG Income Portfolio | Investor, A and R Class | Institutional Class | |
For: | 136,504,746 | 27,343,844 | |
Against: | 553,940 | 79,637 | |
Abstain: | 2,007,916 | 27 | |
Broker Non-Vote: | 2,543,775 | 0 | |
LIVESTRONG 2015 Portfolio | Investor, A and R Class | Institutional Class | |
For: | 186,075,011 | 64,060,899 | |
Against: | 1,710,744 | 0 | |
Abstain: | 7,526,096 | 22,883 | |
Broker Non-Vote: | 6,557,833 | 108,644 | |
LIVESTRONG 2020 Portfolio | Investor, A and R Class | Institutional Class | |
For: | 137,795,013 | 31,896,511 | |
Against: | 58,973 | 0 | |
Abstain: | 1,454,680 | 6,680 | |
Broker Non-Vote: | 675,107 | 0 | |
LIVESTRONG 2025 Portfolio | Investor, A and R Class | Institutional Class | |
For: | 251,005,707 | 69,806,049 | |
Against: | 1,420,850 | 40,842 | |
Abstain: | 6,548,408 | 152,567 | |
Broker Non-Vote: | 11,818,216 | 243,579 |
117
LIVESTRONG 2030 Portfolio | Investor, A and R Class | Institutional Class | |
For: | 129,205,247 | 24,991,674 | |
Against: | 68,304 | 2,986 | |
Abstain: | 2,735,884 | 48,996 | |
Broker Non-Vote: | 707,861 | 0 | |
LIVESTRONG 2035 Portfolio | Investor, A and R Class | Institutional Class | |
For: | 172,170,876 | 40,369,506 | |
Against: | 630,327 | 22,107 | |
Abstain: | 3,532,686 | 19,216 | |
Broker Non-Vote: | 15,058,843 | 255,649 | |
LIVESTRONG 2040 Portfolio | Investor, A and R Class | Institutional Class | |
For: | 48,207,932 | 15,387,470 | |
Against: | 93,126 | 0 | |
Abstain: | 2,059,219 | 15,140 | |
Broker Non-Vote: | 733,605 | 0 | |
LIVESTRONG 2045 Portfolio | Investor, A and R Class | Institutional Class | |
For: | 74,935,690 | 29,331,367 | |
Against: | 678,679 | 884 | |
Abstain: | 1,839,817 | 0 | |
Broker Non-Vote: | 7,186,230 | 1,116,098 | |
LIVESTRONG 2050 Portfolio | Investor, A and R Class | Institutional Class | |
For: | 11,179,281 | 2,998,476 | |
Against: | 55,504 | 683 | |
Abstain: | 283,767 | 343,872 | |
Broker Non-Vote: | 290,389 | 0 |
118
Management |
The Board of Directors
The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors), is 72. However, the mandatory retirement age may be extended or changed with the approval of the remaining independent directors.
Mr. Thomas is the only director who is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor).
The other directors (more than three-fourths of the total number) are independent; that is, they have never been employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS). The directors serve in this capacity for seven (in the case of Mr. Thomas, 15) registered investment companies in the American Century Investments family of funds.
The following presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Independent Directors
Thomas A. Brown
Year of Birth: 1940
Position(s) with the Funds: Director
Length of Time Served: Since 1980
Principal Occupation(s) During the Past Five Years: Managing Member, Associated Investments,
LLC (real estate investment company); Brown Cascade Properties, LLC (real estate
investment company) (2001 to 2009)
Number of Funds in Fund Complex Overseen by Director: 63
Other Directorships Held by Director During the Past Five Years: None
Education/Other Professional Experience: BS in Mechanical Engineering, University of
Kansas; formerly, Chief Executive Officer, Associated Bearings Company; formerly,
Area Vice President, Applied Industrial Technologies (bearings and power
transmission company)
119
Andrea C. Hall
Year of Birth: 1945
Position(s) with the Funds: Director
Length of Time Served: Since 1997
Principal Occupation(s) During the Past Five Years: Retired as advisor to the President, Midwest
Research Institute (not-for-profit research organization) (June 2006)
Number of Funds in Fund Complex Overseen by Director: 63
Other Directorships Held by Director During the Past Five Years: None
Education/Other Professional Experience: BS in Biology, Florida State University; PhD in
Biology, Georgetown University; formerly, Senior Vice President and Director of
Research Operations, Midwest Research Institute
James A. Olson
Year of Birth: 1942
Position(s) with the Funds: Director
Length of Time Served: Since 2007
Principal Occupation(s) During the Past Five Years: Member, Plaza Belmont LLC (private equity
fund manager); Chief Financial Officer, Plaza Belmont LLC (September 1999 to
September 2006)
Number of Funds in Fund Complex Overseen by Director: 63
Other Directorships Held by Director During the Past Five Years: Saia, Inc. and Entertainment
Properties Trust
Education/Other Professional Experience: BS in Business Administration and MBA, St. Louis
University; CPA; 21 years of experience as a partner in the accounting firm of Ernst
& Young LLP
Donald H. Pratt
Year of Birth: 1937
Position(s) with the Funds: Director, Chairman of the Board
Length of Time Served: Since 1995 (Chairman since 2005)
Principal Occupation(s) During the Past Five Years: Chairman and Chief Executive Officer,
Western Investments, Inc. (real estate company)
Number of Funds in Fund Complex Overseen by Director: 63
Other Directorships Held by Director During the Past Five Years: None
Education/Other Professional Experience: BS in Industrial Engineering, Wichita State
University; MBA, Harvard Business School; serves on the Board of Governors of
the Independent Directors Council and Investment Company Institute; formerly,
Chairman of the Board, Butler Manufacturing Company (metal buildings producer)
120
M. Jeannine Strandjord
Year of Birth: 1945
Position(s) with the Funds: Director
Length of Time Served: Since 1994
Principal Occupation(s) During the Past Five Years: Retired, formerly, Senior Vice President,
Process Excellence, Sprint Corporation (telecommunications company)
(January 2005-September 2005)
Number of Funds in Fund Complex Overseen by Director: 63
Other Directorships Held by Director During the Past Five Years: DST Systems Inc., Euronet
Worldwide Inc., Charming Shoppes, Inc.
Education/Other Professional Experience: BS in Business Administration and Accounting,
University of Kansas; CPA; formerly, Senior Vice President of Financial Services and
Treasurer and Chief Financial Officer, Global Markets Group; Sprint Corporation;
formerly, with the accounting firm of Ernst and Whinney
John R. Whitten
Year of Birth: 1946
Position(s) with the Funds: Director
Length of Time Served: Since 2008
Principal Occupation(s) During the Past Five Years: Project Consultant, Celanese Corp.
(industrial chemical company)
Number of Funds in Fund Complex Overseen by Director: 63
Other Directorships Held by Director During the Past Five Years: Rudolph Technologies, Inc.
Professional Education/Experience: BS in Business Administration, Cleveland State
University; CPA; formerly, Chief Financial Officer and Treasurer, Applied Industrial
Technologies, Inc.; thirteen years of experience with accounting firm Deloitte &
Touche LLP
Interested Director
Jonathan S. Thomas
Year of Birth: 1963
Position(s) with the Funds: Director and President
Length of Time Served: Since 2007
Principal Occupation(s) During the Past Five Years: President and Chief Executive Officer,
ACC (March 2007 to present); Chief Administrative Officer, ACC (February 2006 to
February 2007); Executive Vice President, ACC (November 2005 to February 2007);
Global Chief Operating Officer and Managing Director, Morgan Stanley (investment
management) (March 2000 to November 2005). Also serves as: Chief Executive
Officer and Manager, ACS; Executive Vice President, ACIM; Director, ACC, ACIM
and other ACC subsidiaries
Number of Funds in Fund Complex Overseen by Director: 104
Other Directorships Held by Director During the Past Five Years: None
Education/Other Professional Experience: BA in Economics, University of Massachusetts;
MBA, Boston College; formerly held senior leadership roles with Fidelity
Investments, Boston Financial Services and Bank of America; serves on the Board of
Governors of the Investment Company Institute
121
Officers
The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for each of the 15 investment companies in the American Century family of funds, unless otherwise noted. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each of the officers listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name | Offices with | |
(Year of Birth) | the Funds | Principal Occupation(s) During the Past Five Years |
Jonathan S. | Director and | President and Chief Executive Officer, ACC (March 2007 to present); Chief |
Thomas | President | Administrative Officer, ACC (February 2006 to February 2007); Executive |
(1963) | since 2007 | Vice President, ACC (November 2005 to February 2007); Global Chief |
Operating Officer and Managing Director, Morgan Stanley (March 2000 | ||
to November 2005). Also serves as: Chief Executive Officer and Manager, | ||
ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other | ||
ACC subsidiaries | ||
Barry Fink | Executive | Chief Operating Officer and Executive Vice President, ACC (September 2007 |
(1955) | Vice President | to present); President, ACS (October 2007 to present); Managing Director, |
since 2007 | Morgan Stanley (2000 to 2007); Global General Counsel, Morgan Stanley | |
(2000 to 2006). Also serves as: Manager, ACS and Director, ACC and | ||
certain ACC subsidiaries | ||
Maryanne L. | Chief Compliance | Chief Compliance Officer, American Century funds, ACIM and ACS (August |
Roepke | Officer since 2006 | 2006 to present); Assistant Treasurer, ACC (January 1995 to August 2006); |
(1956) | and Senior Vice | and Treasurer and Chief Financial Officer, various American Century funds |
President | (July 2000 to August 2006). Also serves as: Senior Vice President, ACS | |
since 2000 | ||
Charles A. | General Counsel | Attorney, ACC (February 1994 to present); Vice President, ACC (November |
Etherington | since 2007 and | 2005 to present), General Counsel, ACC (March 2007 to present); Also |
(1957) | Senior Vice | serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; |
President | and Senior Vice President, ACIM and ACS | |
since 2006 | ||
Robert J. Leach | Vice President, | Vice President, ACS (February 2000 to present); and Controller, various |
(1966) | Treasurer and | American Century funds (1997 to September 2006) |
Chief Financial | ||
Officer since 2006 | ||
David H. Reinmiller | Vice President | Attorney, ACC (January 1994 to present); Associate General Counsel, ACC |
(1963) | since 2000 | (January 2001 to present); Chief Compliance Officer, American Century |
funds and ACIM (January 2001 to February 2005). Also serves as Vice | ||
President, ACIM and ACS | ||
Ward D. Stauffer | Secretary | Attorney, ACC (June 2003 – Present) |
(1960) | since 2005 | |
The Statement of Additional Information has additional information about the funds’ directors and is available without charge, upon request, | ||
by calling 1-800-345-2021. |
122
Board Approval of Management Agreements |
American Century Investment Management, Inc. (“ACIM” or the “Advisor”) currently serves as investment advisor to the Funds under a management agreement (the “Current Management Agreement”) that took effect on July 16, 2010, following approval by the Funds’ Board of Directors (the “Board”) and shareholders. The Advisor previously served as investment advisor to the Funds pursuant to a management agreement (the “Prior Management Agreement”) and an interim management agreement (the “Interim Management Agreement”). The Interim Management Agreement terminated in accordance with its terms on July 16, 2010, upon the effectiveness of the Current Management Agreement. The Prior Management Agreement terminated on February 16, 2010, as a result of a change of control of the Advisor’s parent company, American Century Companies, Inc. (“ACC”). The c hange in control occurred as the result of a change in the trustee of a trust created by James E. Stowers, Jr., the founder of American Century Investments, which holds shares representing a significant interest in ACC stock. Mr. Stowers previously served as the trustee of the trust. On February 16, 2010, Richard W. Brown, Co-Chairman of ACC with Mr. Stowers, became the trustee in accordance with the terms of the trust and Mr. Stowers’ long-standing estate and succession plan.
On February 18, 2010, the Board approved the Interim Agreement in accordance with Rule 15a-4 under the Investment Company Act to ensure continued management of the Funds by the Advisor after the termination of the Prior Agreement and until shareholder approval of the Current Management Agreement as required under the Act. The Board approved the Current Agreement and recommended its approval to shareholders. Fund shareholders approved the Current Agreement at meetings held on June 16, 2010 and June 30, 2010.*
The Interim Agreement and the Current Agreement are substantially identical to the Prior Agreement except for their effective dates and the termination provisions of the Interim Agreement. Under the Current Agreement, the Advisor will provide the same services as provided by the Advisor, be subject to the same duties, and receive the same compensation rate as under the Prior Agreement.
Basis for Board Approval of Interim Agreement
In considering the approval of the Interim Agreement, Rule 15a-4 requires the Board to approve the contract within ten business days of the termination of the prior agreement and to determine that the compensation to be received under the interim agreement is no greater than would have been received under the corresponding prior agreement. In connection with the approval, the Board noted that it oversees on a continuous basis and evaluates at its quarterly meetings, directly and through the committees of the Board, the nature and quality of significant services provided by the Advisor, the investment performance of the Funds, shareholder services, audit and compliance functions and a variety of other matters relating to the Funds’ operations.
*Management agreements for new share classes of the Funds launched after February 16, 2010, did not terminate, have not been replaced |
by Interim Management Agreements, and do not require Board or shareholder approval at this time. |
123
In evaluating the Interim Agreement, the Board, assisted by the advice of its independent legal counsel, considered a number of factors in addition to those required by the rule with no one factor being determinative to its analysis. Among the factors considered by the Board were the circumstances and effect of the change of control, the fact that the Advisor will provide the same services and receive the same compensation rate as under the Prior Agreement, and that the change of control did not result in a change of the personnel managing the Funds. Upon completion of its analysis, the Board approved the Interim Agreement, determining that the continued management of the Funds by the Advisor was in the best interests of the Funds and Fund shareholders.
Basis for Board Approval of Current Agreement
At a meeting held on March 29, 2010, after considering all information presented, the Board approved, and determined to recommend that shareholders approve, the Current Agreement. In connection with that approval, the Board requested and reviewed extensive data and information compiled by the Advisor and certain independent providers of evaluation data concerning the Funds and services provided to the Funds. The Board oversees on a continuous basis and evaluates at its quarterly meetings, directly and through the committees of the Board, the nature and quality of significant services provided to the Funds, the investment performance of the Funds, shareholder services, audit and compliance functions and a variety of other matters relating to the Funds’ operations. The information considered and the discussions held at the meetings included, but were not limited to:
• the nature, extent and quality of investment management, shareholder services and other services provided to the Funds;
• the wide range of programs and services provided to the Funds and their shareholders on a routine and non-routine basis;
• the compliance policies, procedures, and regulatory experience of the Advisor;
• data comparing the cost of owning the Funds to the cost of owning similar funds;
• the fact that there will be no changes to the fees, services, or personnel who provide such services as compared to the Prior Agreement;
• data comparing each Fund’s performance to appropriate benchmarks and/or a peer group of other mutual funds with similar investment objectives and strategies;
• financial data showing the profitability of the Funds to the Advisor and the overall profitability of the Advisor;
• data comparing services provided and charges to the Funds with those for other non-fund investment management clients of the Advisor; and
124
• consideration of collateral or “fall-out” benefits derived by the Advisor from the management of the Funds and potential sharing of economies of scale in connection with the management of the Funds.
The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In particular, the Board recognized that shareholders may have invested in the Funds on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing services to the Funds.
The Board considered all of the information provided by the Advisor, the independent data providers, and the Board’s independent legal counsel, and evaluated such information for the Funds. The Board did not identify any single factor as being all-important or controlling, and each Board member may have attributed different levels of importance to different factors. In deciding to approve the Current Agreement under the terms ultimately determined by the Board to be appropriate, the Board based its decision on a number of factors, including the following:
Nature, Extent and Quality of Services — Generally. Under the Current Agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Funds. The Board noted that under the Current Agreement, the Advisor provides or arranges at its own expense a wide variety of services including:
• constructing and designing the Funds
• portfolio research and security selection
• initial capitalization/funding
• securities trading
• Fund administration
• custody of Fund assets
• daily valuation of each Fund’s portfolio
• shareholder servicing and transfer agency, including shareholder
confirmations, recordkeeping and communications
• legal services
• regulatory and portfolio compliance
• financial reporting
• marketing and distribution
125
The Board noted that many of these services have expanded over time both in terms of quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels and the changing regulatory environment.
Investment Management Services. The investment management services provided to the Funds are complex and provide Fund shareholders access to professional money management, instant diversification of their investments within an asset class, the opportunity to easily diversify among asset classes, and liquidity. As a part of its general oversight and in evaluating investment performance, the Board expects the Advisor to manage the Funds in accordance with their investment objectives and approved strategies. In providing these services, the Advisor utilizes teams of investment professionals who require extensive information technology, research, training, compliance and other systems to conduct their business. The Board, directly and through its Fund Performance Review Committee, regularly reviews investment performance information f or the Funds, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. If performance concerns are identified, the appropriate Fund receives special reviews until performance improves, during which time the Board discusses with the Advisor the reasons for such underperformance and any efforts being undertaken to improve performance.
Shareholder and Other Services. Under the Current Agreement, the Advisor will also provide the Funds with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through the various committees of the Board, regularly reviews reports and evaluations of such services. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction (as measured by external as well as internal sources), technology support, new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities. Certain aspects of shareholder and transfer agency service le vel efficiency and the quality of securities trading activities are measured by independent third party providers and are presented in comparison to other fund groups not managed by the Advisor.
Costs of Services Provided and Profitability. The Advisor provided detailed information concerning its cost of providing various services to the Funds, its profitability in managing the Funds, its overall profitability, and its financial condition. The Board reviewed with the Advisor the methodology used to prepare this financial information. The Board has also reviewed with the Advisor its methodology for compensating the investment professionals that provide services to the Funds as well as compensation to the five highest paid personnel of the Advisor. This financial information regarding the Advisor is considered in order to evaluate the Advisor’s financial condition, its ability to continue to provide services under the Current Management Agreement, and the reasonableness of the current management fees. The Board conclud ed that the Advisor’s profits were reasonable in light of the services provided to the Funds.
126
Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. It noted that the Advisor’s practices generally meet or exceed industry best practices.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Funds. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The analysis of economies of scale is further complicated by the additional services and content provided by the Advisor and its reinvestment in its ability to provide and expand those services. Accordingly, the Board seeks to evaluate economies of scale by reviewing information, such as year-over-year profitability of the Advisor generally, the profitability of its management of the Funds specifically, and the expenses incurred by the Advisor in providing various functions to the Funds. The Board believes the Adviso r is appropriately sharing economies of scale through its competitive fee structure, offering competitive fees from fund inception, fee breakpoints as each Fund increases in size, and through reinvestment in its business to provide shareholders additional services and enhancements to existing services.
Comparison to Fees of Funds not Managed by the Advisor. The Funds invest their non cash assets entirely in other American Century Investments funds. The Funds do not pay an investment advisor fee to the advisor. Rather each fund indirectly bears its pro rata share of the expenses incurred by the underlying funds and the Investor, A, C and R Classes pay the advisor a 0.20% administrative fee. Each of the underlying Funds pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage expenses, taxes, interest, extraordinary expenses, and the fees and expenses of the Funds’ Independent Directors (including their independent legal counsel) and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing and shareholder services, or arranging and supervising third parties that provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, the components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of incre ased costs of operating the Funds and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider comparing each Fund’s unified fee to the total expense ratios of similar funds not managed by the Advisor. The
127
Board concluded that the management fee to be paid by the Funds to the Advisor under the Current Management Agreement is reasonable in light of the services to be provided to the Funds.
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature and extent of the services, fees, and profitability of its advisory services to advisory clients other than the Funds. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Funds. The Board analyzed this information and concluded that the fees charged and services provided to the Fundswere reasonable by comparison.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the existence of collateral benefits the Advisor may receive as a result of its relationship with the Funds. The Board concluded that the Advisor’s primary business is managing mutual funds and it generally does not use Fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. The Board noted that the Advisor receives proprietary research from broker-dealers that execute Fund portfolio transactions and concluded that this research is likely to benefit Fund shareholders. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Funds, at least in part, due to its existin g infrastructure built to serve the fund complex. The Board concluded, however, that the assets of those other clients are not material to the analysis and, in any event, are included with the assets of fund clients to determine breakpoints in each fund’s fee schedule, provided they are managed using the same investment team and strategy.
Conclusion of the Board. As a result of this process, the Board, in the absence of particular circumstances and assisted by the advice of its independent legal counsel, taking into account all of the factors discussed above and the information provided by the Advisor and others, concluded that the Current Management Agreement be approved and recommended its approval to Fund shareholders.
128
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.
129
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 Barclays Capital U.S. Corporate High-Yield Bond Index covers the universe of fixed-rate, non-investment grade corporate debt of issuers in non-emerging market countries.
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.
130
Notes |
131
Notes |
132
![](https://capedge.com/proxy/N-CSR/0001467105-10-000080/cl-ann69346x136x1.jpg)
Contact Us | |
americancentury.com | |
Automated Information Line | 1-800-345-8765 |
Investor Services Representative | 1-800-345-2021 or |
816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 |
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.
1009
CL-ANN-69346
ITEM 2. CODE OF ETHICS. | |||
(a) | The registrant has adopted a Code of Ethics for Senior Financial Officers that applies to the | ||
registrant’s principal executive officer, principal financial officer, principal accounting officer, | |||
and persons performing similar functions. | |||
(b) | No response required. | ||
(c) | None. | ||
(d) | None. | ||
(e) | Not applicable. | ||
(f) | The registrant’s Code of Ethics for Senior Financial Officers was filed as Exhibit 12 (a)(1) to | ||
American Century Asset Allocation Portfolios, Inc.’s Annual Certified Shareholder Report on | |||
Form N-CSR, File No. 811-21591, on September 29, 2005, and is incorporated herein by | |||
reference. | |||
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. | |||
(a) | (1) | The registrant’s board has determined that the registrant has at least one audit committee financial | |
expert serving on its audit committee. | |||
(a) | (2) | James A. Olson, Andrea C. Hall and Thomas A. Brown are the registrant’s designated audit | |
committee financial experts. They are “independent” as defined in Item 3 of Form N-CSR. | |||
(a) | (3) | Not applicable. | |
(b) | No response required. | ||
(c) | No response required. | ||
(d) | No response required. | ||
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. | |||
(a) | Audit Fees. | ||
The aggregate fees billed for each of the last two fiscal years for professional services rendered by the | |||
principal accountant for the audit of the registrant’s annual financial statements or services that are normally | |||
provided by the accountant in connection with statutory and regulatory filings or engagements for those | |||
fiscal years were as follows: | |||
FY 2009: | $114,612 | ||
FY 2010: | $101,356 | ||
(b) | Audit-Related Fees. | ||
The aggregate fees billed in each of the last two fiscal years for assurance and related services by the | |||
principal accountant that are reasonably related to the performance of the audit of the registrant’s financial | |||
statements and are not reported under paragraph (a) of this Item were as follows: | |||
For services rendered to the registrant: |
FY 2009 : $0 | |||||
FY 2010 : $0 | |||||
Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X | |||||
(relating to certain engagements for non-audit services with the registrant’s investment adviser | |||||
and its affiliates): | |||||
FY 2009 : $0 | |||||
FY 2010 : $0 | |||||
(c) | Tax Fees. | ||||
The aggregate fees billed in each of the last two fiscal years for professional services rendered by the | |||||
principal accountant for tax compliance, tax advice, and tax planning were as follows: | |||||
For services rendered to the registrant: | |||||
FY 2009 : $0 | |||||
FY 2010 : $0 | |||||
Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X | |||||
(relating to certain engagements for non-audit services with the registrant’s investment adviser | |||||
and its affiliates): | |||||
FY 2009 : $0 | |||||
FY 2010 : $0 | |||||
(d) | All Other Fees. | ||||
The aggregate fees billed in each of the last two fiscal years for products and services provided by the | |||||
principal accountant, other than the services reported in paragraphs (a) through (c) of this Item were as | |||||
follows: | |||||
For services rendered to the registrant: | |||||
FY 2009 : $0 | |||||
FY 2010 : $0 | |||||
Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X | |||||
(relating to certain engagements for non-audit services with the registrant’s investment adviser | |||||
and its affiliates): | |||||
FY 2009 : $0 | |||||
FY 2010 : $0 | |||||
(e) | (1) | In accordance with paragraph (c)(7)(i)(A) of Rule 2-01 of Regulation S-X, before the accountant | |||
is engaged by the registrant to render audit or non-audit services, the engagement is approved by | |||||
the registrant’s audit committee. Pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, | |||||
the registrant’s audit committee also pre-approves its accountant’s engagements for non-audit | |||||
services with the registrant’s investment adviser, its parent company, and any entity controlled by, | |||||
or under common control with the investment adviser that provides ongoing services to the | |||||
registrant, if the engagement relates directly to the operations and financial reporting of the | |||||
registrant. |
(e) | (2) | All services described in each of paragraphs (b) through (d) of this Item were pre-approved before | ||
the engagement by the registrant’s audit committee pursuant to paragraph (c)(7)(i)(A) of Rule 2- | ||||
01 of Regulation S-X. Consequently, none of such services were required to be approved by the | ||||
audit committee pursuant to paragraph (c)(7)(i)(C). | ||||
(f) | The percentage of hours expended on the principal accountant’s engagement to audit the | |||
registrant’s financial statements for the most recent fiscal year that were attributed to work | ||||
performed by persons other than the principal accountant’s full-time, permanent employees was | ||||
less than 50%. | ||||
(g) | The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the | |||
registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser | ||||
whose role is primarily portfolio management and is subcontracted with or overseen by another | ||||
investment adviser), and any entity controlling, controlled by, or under common control with the | ||||
adviser that provides ongoing services to the registrant for each of the last two fiscal years of the | ||||
registrant were as follows: | ||||
FY 2009: $81,217 | ||||
FY 2010: $60,027 | ||||
(h) | The registrant’s investment adviser and accountant have notified the registrant’s audit committee of | |||
all non-audit services that were rendered by the registrant’s accountant to the registrant’s | ||||
investment adviser, its parent company, and any entity controlled by, or under common control with | ||||
the investment adviser that provides services to the registrant, which services were not required to | ||||
be pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X. The notification | ||||
provided to the registrant’s audit committee included sufficient details regarding such services to | ||||
allow the registrant’s audit committee to consider the continuing independence of its principal | ||||
accountant. | ||||
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) | Registrant’s Code of Ethics for Senior Financial Officers, which is the subject of the disclosure |
required by Item 2 of Form N-CSR, was filed as Exhibit 12(a)(1) to American Century Asset | ||
Allocation Portfolios, Inc.’s Certified Shareholder Report on Form N-CSR, File No. 811-21591, | ||
on September 29, 2005. | ||
(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: | September 29, 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: | September 29, 2010 |
By: | /s/ Robert J. Leach | |
Name: | Robert J. Leach | |
Title: | Vice President, Treasurer, and | |
Chief Financial Officer | ||
(principal financial officer) | ||
Date: | September 29, 2010 |