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 | 811-05447 |
| | |
| AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS, 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: | 10-31 |
| | |
| Date of reporting period: | 04-30-2019 |
ITEM 1. REPORTS TO STOCKHOLDERS.
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| |
| SEMIANNUAL REPORT | |
| APRIL 30, 2019 |
| |
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|
AC Alternatives® Emerging Opportunities Total Return Fund |
| Investor Class (AEOVX) |
| I Class (AEOUX) |
| Y Class (AEOWX) |
| A Class (AEOLX) |
| R Class (AEORX) |
| R5 Class (AEOJX) |
| R6 Class (AEODX) |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.
You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
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| | |
| President’s Letter | 2 |
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| Fund Characteristics | |
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| Shareholder Fee Example | |
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| Schedule of Investments | |
|
| Statement of Assets and Liabilities | |
|
| Statement of Operations | |
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| Statement of Changes in Net Assets | |
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| Notes to Financial Statements | |
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| Financial Highlights | |
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| Additional Information | |
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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 Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended April 30, 2019. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, please visit our website, americancentury.com.
Improving Investor Sentiment, Dovish Central Banks Supported Widespread Gains
Stocks struggled early in the period, while bonds rallied. Mounting investor concerns about slowing global economic and earnings growth, U.S.-China trade tensions and rising U.S. interest rates triggered a broad stock market sell-off. Bonds, on the other hand, benefited, as global growth worries fueled demand for perceived safe-haven securities, driving government bond yields lower. Federal Reserve (Fed) policy also influenced the backdrop. Despite signs that growth was slowing, the Fed raised interest rates in December. Investors feared this rate increase and the Fed’s plans for two more rate hikes in 2019 were too aggressive, and risk-off investing remained in favor.
The new year brought a renewed sense of stability to the global financial markets. Investors’ worst-case fears about growth and trade eased, and corporate earnings results were generally better than expected. Equity valuations appeared attractive following the late-2018 stock market sell-off, and risk-on investing resumed. Meanwhile, the Fed changed course, ending its rate-hike campaign amid moderating global growth and inflation. The Fed's policy pivot along with dovish actions from central banks in the U.K., Europe and Japan helped drive yields lower and support the broad global investment landscape.
Overall, stocks shook off their early losses to generate solid gains for the entire six-month period. Similarly, other risk assets, including high-yield bonds, also delivered strong results. Elsewhere, global yields generally declined for the six-month period, which helped government, securitized and corporate bonds, real estate investment trusts, and other interest rate-sensitive securities generate positive returns.
Looking ahead, we expect volatility to remain a formidable factor as investors react to global growth trends, central bank policy and geopolitical developments. We believe this scenario underscores the importance of using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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| |
| APRIL 30, 2019 |
| Portfolio at a Glance |
| Average Duration (effective) | 3.6 years |
| Weighted Average Life to Maturity | 5.7 years |
| | |
| Bond Holdings by Country | % of net assets |
| United States | 15.7% |
| Mexico | 7.3% |
| Indonesia | 6.7% |
| Russia | 6.7% |
| South Africa | 6.3% |
| Peru | 5.6% |
| Colombia | 3.3% |
| Brazil | 3.0% |
| Turkey | 2.7% |
| Hungary | 2.5% |
| Other Countries | 25.9% |
| Cash and Equivalents* | 14.3% |
| *Includes temporary cash investments and other assets and liabilities. |
| | |
| Types of Investments in Portfolio | % of net assets |
| Sovereign Governments and Agencies | 45.6% |
| Corporate Bonds | 24.4% |
| U.S. Treasury Securities | 15.7% |
| Temporary Cash Investments | 13.5% |
| Other Assets and Liabilities | 0.8% |
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.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from November 1, 2018 to April 30, 2019.
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 I 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. 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 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.
|
| | | | |
| | Beginning
Account Value
11/1/18 | Ending
Account Value
4/30/19 | Expenses Paid
During Period(1)
11/1/18 - 4/30/19 |
Annualized
Expense Ratio(1) |
| Actual | | | | |
| Investor Class | $1,000 | $1,055.50 | $5.15 | 1.01% |
| I Class | $1,000 | $1,056.50 | $4.64 | 0.91% |
| Y Class | $1,000 | $1,057.60 | $4.13 | 0.81% |
| A Class | $1,000 | $1,054.00 | $6.42 | 1.26% |
| R Class | $1,000 | $1,053.40 | $7.69 | 1.51% |
| R5 Class | $1,000 | $1,057.60 | $4.13 | 0.81% |
| R6 Class | $1,000 | $1,057.10 | $3.88 | 0.76% |
| Hypothetical | | | | |
| Investor Class | $1,000 | $1,019.79 | $5.06 | 1.01% |
| I Class | $1,000 | $1,020.28 | $4.56 | 0.91% |
| Y Class | $1,000 | $1,020.78 | $4.06 | 0.81% |
| A Class | $1,000 | $1,018.55 | $6.31 | 1.26% |
| R Class | $1,000 | $1,017.31 | $7.55 | 1.51% |
| R5 Class | $1,000 | $1,020.78 | $4.06 | 0.81% |
| R6 Class | $1,000 | $1,021.03 | $3.81 | 0.76% |
| |
| (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. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
APRIL 30, 2019 (UNAUDITED)
|
| | | | | | | |
| | | Principal Amount | Value |
| SOVEREIGN GOVERNMENTS AND AGENCIES — 45.6% | | | |
| Colombia — 2.0% | | | |
| Colombian TES, 7.50%, 8/26/26 | COP | 1,375,000,000 |
| $ | 454,387 |
|
| Croatia — 1.3% | | | |
| Croatia Government International Bond, 6.625%, 7/14/20 | | $ | 300,000 |
| 312,698 |
|
| Dominican Republic — 2.1% | | | |
| Dominican Republic International Bond, 6.00%, 7/19/28 | | 450,000 |
| 475,875 |
|
| Egypt — 1.1% | | | |
| Egypt Government International Bond, 8.50%, 1/31/47 | | 250,000 |
| 255,123 |
|
| El Salvador — 0.7% | | | |
| El Salvador Government International Bond, 8.625%, 2/28/29 | | 140,000 |
| 155,400 |
|
| Ghana — 1.3% | | | |
| Ghana Government International Bond, 8.125%, 1/18/26 | | 300,000 |
| 310,976 |
|
| Hungary — 2.5% | | | |
| Hungary Government Bond, 2.50%, 10/27/21 | HUF | 120,000,000 |
| 432,074 |
|
| Hungary Government Bond, 6.75%, 10/22/28 | HUF | 35,000,000 |
| 158,249 |
|
| | | | 590,323 |
|
| Indonesia — 4.5% | | | |
| Indonesia Treasury Bond, 6.125%, 5/15/28 | IDR | 16,580,000,000 |
| 1,047,158 |
|
| Jordan — 0.8% | | | |
Jordan Government International Bond, 7.375%, 10/10/47(1) | | $ | 200,000 |
| 195,367 |
|
| Malaysia — 1.1% | | | |
| Malaysia Government Bond, 3.73%, 6/15/28 | MYR | 1,050,000 |
| 251,354 |
|
| Mexico — 3.9% | | | |
| Mexican Bonos, 8.00%, 12/7/23 | MXN | 2,200,000 |
| 116,328 |
|
| Mexican Bonos, 5.75%, 3/5/26 | MXN | 8,830,000 |
| 410,061 |
|
| Mexican Bonos, 10.00%, 11/20/36 | MXN | 6,040,000 |
| 365,228 |
|
| | | | 891,617 |
|
| Namibia — 0.8% | | | |
| Namibia International Bonds, 5.25%, 10/29/25 | | $ | 200,000 |
| 194,602 |
|
| Nigeria — 1.1% | | | |
| Nigeria Government International Bond, MTN, 6.50%, 11/28/27 | | 250,000 |
| 246,568 |
|
| Peru — 5.6% | | | |
Peru Government Bond, 6.15%, 8/12/32(1) | PEN | 4,054,000 |
| 1,293,223 |
|
| Russia — 5.9% | | | |
| Russian Federal Bond - OFZ, 6.70%, 5/15/19 | RUB | 15,000,000 |
| 232,004 |
|
| Russian Federal Bond - OFZ, 7.10%, 10/16/24 | RUB | 41,000,000 |
| 615,867 |
|
| Russian Foreign Bond - Eurobond, 5.00%, 4/29/20 | | $ | 300,000 |
| 305,988 |
|
| Russian Foreign Bond - Eurobond, 4.75%, 5/27/26 | | 200,000 |
| 208,046 |
|
| | | | 1,361,905 |
|
| Senegal — 0.6% | | | |
Senegal Government International Bond, 6.75%, 3/13/48(1) | | 150,000 |
| 138,572 |
|
|
| | | | | | | |
| | | Principal Amount | Value |
| Serbia — 2.4% | | | |
| Serbia International Bond, 4.875%, 2/25/20 | | $ | 560,000 |
| $ | 566,980 |
|
| South Africa — 6.3% | | | |
| Republic of South Africa Government Bond, 10.50%, 12/21/26 | ZAR | 3,540,000 |
| 273,831 |
|
| Republic of South Africa Government Bond, 8.00%, 1/31/30 | ZAR | 2,900,000 |
| 187,477 |
|
| Republic of South Africa Government Bond, 8.25%, 3/31/32 | ZAR | 3,400,000 |
| 218,630 |
|
| Republic of South Africa Government International Bond, 6.875%, 5/27/19 | | $ | 600,000 |
| 602,082 |
|
| Republic of South Africa Government International Bond, 4.30%, 10/12/28 | | 200,000 |
| 186,878 |
|
| | | | 1,468,898 |
|
| Turkey — 1.6% | | | |
| Turkey Government International Bond, 6.875%, 3/17/36 | | 400,000 |
| 359,058 |
|
TOTAL SOVEREIGN GOVERNMENTS AND AGENCIES
(Cost $10,460,562) | | | 10,570,084 |
|
| CORPORATE BONDS — 24.4% | | | |
| Brazil — 3.0% | | | |
| Banco do Brasil SA, 6.00%, 1/22/20 | | 275,000 |
| 281,666 |
|
| Banco do Brasil SA, 3.875%, 10/10/22 | | 200,000 |
| 199,750 |
|
| Minerva Luxembourg SA, 5.875%, 1/19/28 | | 225,000 |
| 209,830 |
|
| | | | 691,246 |
|
| Chile — 1.9% | | | |
| Engie Energia Chile SA, 5.625%, 1/15/21 | | 225,000 |
| 234,578 |
|
| Inversiones CMPC SA/Cayman Islands Branch, 4.375%, 5/15/23 | | 200,000 |
| 204,209 |
|
| | | | 438,787 |
|
| China — 0.9% | | | |
Tencent Holdings Ltd., 3.98%, 4/11/29(1) | | 200,000 |
| 201,866 |
|
| Colombia — 1.3% | | | |
Millicom International Cellular SA, 5.125%, 1/15/28(1) | | 300,000 |
| 295,500 |
|
| Croatia — 1.1% | | | |
| Hrvatska Elektroprivreda, 5.875%, 10/23/22 | | 250,000 |
| 268,916 |
|
| Hong Kong — 1.3% | | | |
CK Hutchison International 17 II Ltd., 2.25%, 9/29/20(1) | | 300,000 |
| 297,412 |
|
| Indonesia — 2.2% | | | |
| Listrindo Capital BV, 4.95%, 9/14/26 | | 200,000 |
| 193,800 |
|
Majapahit Holding BV, 7.75%, 1/20/20(1) | | 300,000 |
| 310,689 |
|
| | | | 504,489 |
|
| Kazakhstan — 1.3% | | | |
| KazMunayGas National Co. JSC, 3.875%, 4/19/22 | | 300,000 |
| 303,773 |
|
| Malaysia — 1.3% | | | |
| Petronas Capital Ltd., 5.25%, 8/12/19 | | 300,000 |
| 302,361 |
|
| Mexico — 3.4% | | | |
| Cemex SAB de CV, 6.125%, 5/5/25 | | 325,000 |
| 339,788 |
|
Cometa Energia SA de CV, 6.375%, 4/24/35(1) | | 340,011 |
| 341,286 |
|
|
| | | | | | | |
| | | Principal Amount/Shares | Value |
| Petroleos Mexicanos, 3.50%, 7/23/20 | | $ | 100,000 |
| $ | 100,413 |
|
| | | | 781,487 |
|
| Oman — 1.2% | | | |
| Oztel Holdings SPC Ltd., 6.625%, 4/24/28 | | 300,000 |
| 294,115 |
|
| Qatar — 1.5% | | | |
| Ras Laffan Liquefied Natural Gas Co. Ltd. III, 6.75%, 9/30/19 | | 350,000 |
| 353,784 |
|
| Russia — 0.8% | | | |
| Gazprom OAO Via Gaz Capital SA, MTN, 7.29%, 8/16/37 | | 150,000 |
| 179,851 |
|
| Saudi Arabia — 2.1% | | | |
| Dar Al-Arkan Sukuk Co. Ltd., 6.875%, 3/21/23 | | 300,000 |
| 287,580 |
|
Saudi Arabian Oil Co., 3.50%, 4/16/29(1) | | 200,000 |
| 196,849 |
|
| | | | 484,429 |
|
| Turkey — 1.1% | | | |
Turk Telekomunikasyon AS, 3.75%, 6/19/19(1) | | 250,000 |
| 249,400 |
|
TOTAL CORPORATE BONDS
(Cost $5,593,164) | | | 5,647,416 |
|
| U.S. TREASURY SECURITIES — 15.7% | | | |
| U.S. Treasury Notes, 2.625%, 7/15/21 | | 2,793,000 |
| 2,814,711 |
|
| U.S. Treasury Notes, 2.50%, 2/15/22 | | 534,000 |
| 537,797 |
|
U.S. Treasury Notes, 2.125%, 9/30/24(2) | | 276,000 |
| 273,407 |
|
TOTAL U.S. TREASURY SECURITIES
(Cost $3,598,403) | | | 3,625,915 |
|
| TEMPORARY CASH INVESTMENTS — 13.5% | | | |
| Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.00% - 8.75%, 8/31/19 - 8/15/45, valued at $2,733,308), in a joint trading account at 2.40%, dated 4/30/19, due 5/1/19 (Delivery value $2,678,397) | | | 2,678,218 |
|
| Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.00%, 11/15/45, valued at $460,780), at 1.25%, dated 4/30/19, due 5/1/19 (Delivery value $447,016) | | | 447,000 |
|
| State Street Institutional U.S. Government Money Market Fund, Premier Class | | 1,893 |
| 1,893 |
|
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $3,127,111) | | | 3,127,111 |
|
TOTAL INVESTMENT SECURITIES — 99.2%
(Cost $22,779,240) | | | 22,970,526 |
|
| OTHER ASSETS AND LIABILITIES — 0.8% | | | 184,678 |
|
| TOTAL NET ASSETS — 100.0% | | | $ | 23,155,204 |
|
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
|
| | | | | | | | | | |
| Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation
(Depreciation) |
| ARS | 9,353,196 |
| USD | 206,929 |
| Goldman Sachs & Co. | 6/19/19 | $ | (10,219 | ) |
| USD | 188,573 |
| ARS | 9,353,196 |
| Goldman Sachs & Co. | 6/19/19 | (8,138 | ) |
| BRL | 960,540 |
| USD | 243,101 |
| Goldman Sachs & Co. | 6/19/19 | 955 |
|
| BRL | 5,368,307 |
| USD | 1,388,092 |
| Goldman Sachs & Co. | 6/19/19 | (24,100 | ) |
| USD | 204,036 |
| BRL | 810,124 |
| Goldman Sachs & Co. | 6/19/19 | (1,802 | ) |
| USD | 227,088 |
| BRL | 872,133 |
| Goldman Sachs & Co. | 6/19/19 | 5,495 |
|
| USD | 258,982 |
| BRL | 992,521 |
| Goldman Sachs & Co. | 6/19/19 | 6,800 |
|
| CAD | 467,739 |
| USD | 349,294 |
| Morgan Stanley | 6/19/19 | 277 |
|
| CAD | 461,577 |
| USD | 348,458 |
| Morgan Stanley | 6/19/19 | (3,492 | ) |
| CLP | 152,726,804 |
| USD | 223,050 |
| Goldman Sachs & Co. | 6/19/19 | 2,375 |
|
| CLP | 29,548,678 |
| USD | 44,353 |
| Goldman Sachs & Co. | 6/19/19 | (739 | ) |
| USD | 272,081 |
| CLP | 182,275,482 |
| Goldman Sachs & Co. | 6/19/19 | 3,042 |
|
| COP | 761,919,311 |
| USD | 234,149 |
| Goldman Sachs & Co. | 6/19/19 | 948 |
|
| COP | 736,042,726 |
| USD | 228,230 |
| Goldman Sachs & Co. | 6/19/19 | (1,118 | ) |
| COP | 1,339,254,120 |
| USD | 424,352 |
| Goldman Sachs & Co. | 6/19/19 | (11,113 | ) |
| COP | 904,717,585 |
| USD | 284,662 |
| Goldman Sachs & Co. | 6/19/19 | (5,503 | ) |
| USD | 243,493 |
| COP | 756,983,092 |
| Goldman Sachs & Co. | 6/19/19 | 9,919 |
|
| USD | 45,134 |
| COP | 142,717,212 |
| Goldman Sachs & Co. | 6/19/19 | 1,097 |
|
| USD | 444,801 |
| COP | 1,417,246,110 |
| Goldman Sachs & Co. | 6/19/19 | 7,497 |
|
| CZK | 10,631,166 |
| USD | 462,409 |
| UBS AG | 6/19/19 | 3,370 |
|
| CZK | 5,343,946 |
| USD | 232,250 |
| UBS AG | 6/19/19 | 1,882 |
|
| CZK | 5,264,433 |
| USD | 232,442 |
| UBS AG | 6/19/19 | (1,793 | ) |
| CZK | 5,317,494 |
| USD | 233,808 |
| UBS AG | 6/19/19 | (835 | ) |
| CZK | 5,187,333 |
| USD | 228,961 |
| UBS AG | 6/19/19 | (1,690 | ) |
| CZK | 19,041,276 |
| USD | 838,347 |
| UBS AG | 6/19/19 | (4,099 | ) |
| USD | 232,817 |
| CZK | 5,236,295 |
| UBS AG | 6/19/19 | 3,402 |
|
| USD | 343,000 |
| CZK | 7,711,163 |
| UBS AG | 6/19/19 | 5,154 |
|
| USD | 347,965 |
| CZK | 7,854,443 |
| UBS AG | 6/19/19 | 3,842 |
|
| USD | 227,858 |
| CZK | 5,261,467 |
| UBS AG | 6/19/19 | (2,660 | ) |
| USD | 151,110 |
| CZK | 3,426,708 |
| UBS AG | 6/19/19 | 977 |
|
| EUR | 733,006 |
| USD | 829,577 |
| JPMorgan Chase Bank N.A. | 6/19/19 | (4,078 | ) |
| USD | 223,245 |
| EUR | 196,632 |
| JPMorgan Chase Bank N.A. | 6/19/19 | 1,802 |
|
| USD | 460,730 |
| EUR | 411,408 |
| JPMorgan Chase Bank N.A. | 6/19/19 | (2,591 | ) |
| USD | 142,281 |
| EUR | 124,966 |
| JPMorgan Chase Bank N.A. | 6/19/19 | 1,547 |
|
| HUF | 40,929,513 |
| USD | 147,806 |
| UBS AG | 6/19/19 | (5,603 | ) |
| USD | 166,044 |
| HUF | 47,092,815 |
| UBS AG | 6/19/19 | 2,427 |
|
| USD | 65,393 |
| HUF | 18,204,440 |
| UBS AG | 6/19/19 | 2,144 |
|
| USD | 1,218,477 |
| HUF | 340,659,469 |
| UBS AG | 6/19/19 | 34,907 |
|
| IDR | 3,446,303,876 |
| USD | 240,916 |
| Goldman Sachs & Co. | 6/19/19 | (82 | ) |
| IDR | 3,123,189,250 |
| USD | 218,039 |
| Goldman Sachs & Co. | 6/19/19 | 215 |
|
| IDR | 3,200,184,317 |
| USD | 221,573 |
| Goldman Sachs & Co. | 6/19/19 | 2,061 |
|
| IDR | 2,359,682,970 |
| USD | 163,867 |
| Goldman Sachs & Co. | 6/19/19 | 1,032 |
|
|
| | | | | | | | | | |
| Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation
(Depreciation) |
| USD | 237,101 |
| IDR | 3,424,206,753 |
| Goldman Sachs & Co. | 6/19/19 | $ | (2,189 | ) |
| USD | 759,270 |
| IDR | 10,978,280,949 |
| Goldman Sachs & Co. | 6/19/19 | (7,913 | ) |
| INR | 19,485,446 |
| USD | 275,623 |
| Goldman Sachs & Co. | 6/19/19 | 2,361 |
|
| USD | 50,642 |
| INR | 3,569,442 |
| Goldman Sachs & Co. | 6/19/19 | (281 | ) |
| KZT | 88,065,369 |
| USD | 230,236 |
| Goldman Sachs & Co. | 6/19/19 | (646 | ) |
| KZT | 91,268,936 |
| USD | 237,896 |
| Goldman Sachs & Co. | 6/19/19 | 45 |
|
| KZT | 420,822,291 |
| USD | 1,095,606 |
| Goldman Sachs & Co. | 6/19/19 | 1,495 |
|
| USD | 444,065 |
| KZT | 170,965,028 |
| Goldman Sachs & Co. | 6/19/19 | (1,648 | ) |
| USD | 196,742 |
| KZT | 75,549,079 |
| Goldman Sachs & Co. | 6/19/19 | (217 | ) |
| MXN | 5,095,551 |
| USD | 267,228 |
| Morgan Stanley | 6/19/19 | (482 | ) |
| MXN | 4,701,904 |
| USD | 239,582 |
| Morgan Stanley | 6/19/19 | 6,557 |
|
| MXN | 3,528,190 |
| USD | 179,873 |
| Morgan Stanley | 6/19/19 | 4,823 |
|
| USD | 247,964 |
| MXN | 4,747,723 |
| Morgan Stanley | 6/19/19 | (573 | ) |
| USD | 275,990 |
| MXN | 5,302,327 |
| Morgan Stanley | 6/19/19 | (1,580 | ) |
| USD | 220,117 |
| MXN | 4,314,529 |
| Morgan Stanley | 6/19/19 | (5,743 | ) |
| USD | 156,959 |
| MXN | 3,098,299 |
| Morgan Stanley | 6/19/19 | (5,233 | ) |
| MYR | 1,525,316 |
| USD | 367,546 |
| Goldman Sachs & Co. | 6/19/19 | 633 |
|
| MYR | 5,702,404 |
| USD | 1,396,553 |
| Goldman Sachs & Co. | 6/19/19 | (20,114 | ) |
| USD | 303,399 |
| MYR | 1,229,981 |
| Goldman Sachs & Co. | 6/19/19 | 6,508 |
|
| USD | 308,327 |
| MYR | 1,258,592 |
| Goldman Sachs & Co. | 6/19/19 | 4,530 |
|
| NOK | 1,983,438 |
| USD | 235,015 |
| Goldman Sachs & Co. | 6/19/19 | (4,683 | ) |
| NOK | 7,274,440 |
| USD | 840,208 |
| Goldman Sachs & Co. | 6/19/19 | 4,554 |
|
| USD | 229,578 |
| NOK | 1,965,619 |
| Goldman Sachs & Co. | 6/19/19 | 1,316 |
|
| USD | 155,715 |
| NOK | 1,338,753 |
| Goldman Sachs & Co. | 6/19/19 | 249 |
|
| PEN | 985,268 |
| USD | 298,205 |
| Goldman Sachs & Co. | 6/19/19 | (851 | ) |
| PEN | 830,772 |
| USD | 250,776 |
| Goldman Sachs & Co. | 6/19/19 | (49 | ) |
| USD | 226,436 |
| PEN | 749,458 |
| Goldman Sachs & Co. | 6/19/19 | 250 |
|
| USD | 2,298,731 |
| PEN | 7,624,661 |
| Goldman Sachs & Co. | 6/19/19 | (2,391 | ) |
| PHP | 12,248,431 |
| USD | 231,601 |
| Goldman Sachs & Co. | 6/19/19 | 4,177 |
|
| PHP | 17,464,888 |
| USD | 330,087 |
| Goldman Sachs & Co. | 6/19/19 | 6,106 |
|
| PHP | 6,302,259 |
| USD | 118,031 |
| Goldman Sachs & Co. | 6/19/19 | 3,285 |
|
| USD | 462,912 |
| PHP | 24,091,305 |
| Goldman Sachs & Co. | 6/19/19 | (838 | ) |
| USD | 685,371 |
| PHP | 36,015,578 |
| Goldman Sachs & Co. | 6/19/19 | (7,916 | ) |
| PLN | 874,608 |
| USD | 232,309 |
| Goldman Sachs & Co. | 6/19/19 | (3,139 | ) |
| PLN | 889,543 |
| USD | 232,354 |
| Goldman Sachs & Co. | 6/19/19 | 729 |
|
| USD | 231,084 |
| PLN | 874,608 |
| Goldman Sachs & Co. | 6/19/19 | 1,915 |
|
| RUB | 14,281,713 |
| USD | 219,420 |
| Goldman Sachs & Co. | 6/19/19 | 337 |
|
| USD | 100,065 |
| RUB | 6,659,293 |
| Goldman Sachs & Co. | 6/19/19 | (2,404 | ) |
| USD | 239,326 |
| RUB | 15,493,037 |
| Goldman Sachs & Co. | 6/19/19 | 930 |
|
| USD | 284,548 |
| RUB | 19,022,934 |
| Goldman Sachs & Co. | 6/19/19 | (8,164 | ) |
| SEK | 7,793,044 |
| USD | 833,949 |
| Goldman Sachs & Co. | 6/19/19 | (10,253 | ) |
| USD | 347,292 |
| SEK | 3,209,147 |
| Goldman Sachs & Co. | 6/19/19 | 8,098 |
|
| USD | 347,359 |
| SEK | 3,222,555 |
| Goldman Sachs & Co. | 6/19/19 | 6,747 |
|
| USD | 146,517 |
| SEK | 1,361,342 |
| Goldman Sachs & Co. | 6/19/19 | 2,628 |
|
| THB | 7,338,294 |
| USD | 231,675 |
| Goldman Sachs & Co. | 6/19/19 | (1,998 | ) |
| THB | 7,351,149 |
| USD | 230,863 |
| Goldman Sachs & Co. | 6/19/19 | (784 | ) |
|
| | | | | | | | | | |
| Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation
(Depreciation) |
| USD | 228,930 |
| THB | 7,303,082 |
| Goldman Sachs & Co. | 6/19/19 | $ | 355 |
|
| TRY | 1,344,201 |
| USD | 227,742 |
| Goldman Sachs & Co. | 6/19/19 | (9,098 | ) |
| TRY | 1,435,495 |
| USD | 239,367 |
| Goldman Sachs & Co. | 6/19/19 | (5,874 | ) |
| TRY | 2,940,817 |
| USD | 513,814 |
| Goldman Sachs & Co. | 6/19/19 | (35,471 | ) |
| USD | 227,295 |
| TRY | 1,379,909 |
| Goldman Sachs & Co. | 6/19/19 | 2,844 |
|
| USD | 198,127 |
| TRY | 1,207,325 |
| Goldman Sachs & Co. | 6/19/19 | 1,747 |
|
| USD | 79,943 |
| TRY | 461,106 |
| Goldman Sachs & Co. | 6/19/19 | 4,941 |
|
| TWD | 7,220,066 |
| USD | 234,723 |
| Goldman Sachs & Co. | 6/19/19 | (876 | ) |
| TWD | 21,397,656 |
| USD | 694,774 |
| Goldman Sachs & Co. | 6/19/19 | (1,739 | ) |
| USD | 222,758 |
| TWD | 6,848,480 |
| Goldman Sachs & Co. | 6/19/19 | 947 |
|
| USD | 123,571 |
| TWD | 3,806,984 |
| Goldman Sachs & Co. | 6/19/19 | 269 |
|
| ZAR | 3,576,549 |
| USD | 245,592 |
| UBS AG | 6/19/19 | 3,042 |
|
| USD | 106,574 |
| ZAR | 1,543,465 |
| UBS AG | 6/19/19 | (724 | ) |
| USD | 126,995 |
| ZAR | 1,839,071 |
| UBS AG | 6/19/19 | (853 | ) |
| | | | | | | $ | (48,794 | ) |
|
| | | | | | | | | | | |
| FUTURES CONTRACTS PURCHASED |
| Reference Entity | Contracts | Expiration
Date | Notional
Amount | Underlying
Contract
Value | Unrealized
Appreciation
(Depreciation) |
| U.S. Treasury 2-Year Notes | 40 | June 2019 | USD | 8,000,000 |
| $ | 8,520,312 |
| $ | 12,207 |
|
|
| | | | | | | | | | | |
| FUTURES CONTRACTS SOLD |
| Reference Entity | Contracts | Expiration
Date | Notional
Amount | Underlying
Contract
Value | Unrealized
Appreciation
(Depreciation) |
| Euro-Bund 10-Year Bonds | 2 | June 2019 | EUR | 200,000 |
| $ | 370,824 |
| $ | (5,432 | ) |
| U.S. Treasury 5-Year Notes | 14 | June 2019 | USD | 1,400,000 |
| 1,618,969 |
| 7,195 |
|
| U.S. Treasury 10-Year Notes | 1 | June 2019 | USD | 100,000 |
| 123,672 |
| (1,065 | ) |
| U.S. Treasury 10-Year Ultra Notes | 10 | June 2019 | USD | 1,000,000 |
| 1,317,813 |
| (17,725 | ) |
| | | | | | $ | 3,431,278 |
| $ | (17,027 | ) |
|
| | | | | | | | | | | | | | | |
| CREDIT DEFAULT SWAP AGREEMENTS |
| Counterparty/ Reference Entity | Type | Fixed Rate
Received
(Paid) | Termination
Date | Notional
Amount | Premiums Paid (Received) | Unrealized
Appreciation
(Depreciation) | Value^ |
| Bank of America N.A. / Colombia Government International Bond | Buy | (1.00)% | 6/20/24 | $ | 910,000 |
| $ | 5,803 |
| $ | (7,870 | ) | $ | (2,067 | ) |
| Bank of America N.A. / Korean Government International Bond | Buy | (1.00)% | 6/20/24 | $ | 1,360,000 |
| (44,801 | ) | (1,637 | ) | (46,438 | ) |
| Goldman Sachs & Co. / Qatar Government International Bond | Buy | (1.00)% | 6/20/24 | $ | 1,800,000 |
| (20,670 | ) | (11,770 | ) | (32,440 | ) |
| | $ | (59,668 | ) | $ | (21,277 | ) | $ | (80,945 | ) |
^The value for credit default swap agreements serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability or profit at the period end. Increasing values in absolute terms when compared to the notional amount of the credit default swap agreement represent a deterioration of the referenced entity's credit soundness and an increased likelihood or risk of a credit event occurring as defined in the agreement.
|
| | |
| NOTES TO SCHEDULE OF INVESTMENTS |
| ARS | - | Argentine Peso |
| BRL | - | Brazilian Real |
| CAD | - | Canadian Dollar |
| CLP | - | Chilean Peso |
| COP | - | Colombian Peso |
| CZK | - | Czech Koruna |
| EUR | - | Euro |
| HUF | - | Hungarian Forint |
| IDR | - | Indonesian Rupiah |
| INR | - | Indian Rupee |
| KZT | - | Kazakhstani Tenge |
| MTN | - | Medium Term Note |
| MXN | - | Mexican Peso |
| MYR | - | Malaysian Ringgit |
| NOK | - | Norwegian Krone |
| PEN | - | Peruvian Sol |
| PHP | - | Philippine Peso |
| PLN | - | Polish Zloty |
| RUB | - | Russian Ruble |
| SEK | - | Swedish Krona |
| THB | - | Thai Baht |
| TRY | - | Turkish Lira |
| TWD | - | Taiwanese Dollar |
| USD | - | United States Dollar |
| ZAR | - | South African Rand |
| |
| (1) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration, normally to qualified institutional investors. The aggregate value of these securities at the period end was $3,520,164, which represented 15.2% of total net assets. |
| |
| (2) | Security, or a portion thereof, has been pledged at the custodian bank or with a broker for collateral requirements on forward foreign currency exchange contracts, futures contracts and/or swap agreements. At the period end, the aggregate value of securities pledged was $59,444. |
See Notes to Financial Statements.
|
|
| Statement of Assets and Liabilities |
|
| | | |
| APRIL 30, 2019 (UNAUDITED) | |
| Assets | |
| Investment securities, at value (cost of $19,654,022) | $ | 19,845,308 |
|
| Repurchase agreements, at value (cost of $3,125,218) | 3,125,218 |
|
| Total investment securities, at value (cost of $22,779,240) | 22,970,526 |
|
| Foreign currency holdings, at value (cost of $71,961) | 73,733 |
|
| Receivable for variation margin on futures contracts | 1,143 |
|
| Unrealized appreciation on forward foreign currency exchange contracts | 185,585 |
|
| Interest receivable | 266,840 |
|
| | 23,497,827 |
|
| | |
| Liabilities | |
| Payable for variation margin on futures contracts | 1,328 |
|
| Unrealized depreciation on forward foreign currency exchange contracts | 234,379 |
|
| Swap agreements, at value (including net premiums paid (received) of $(59,668)) | 80,945 |
|
| Accrued management fees | 17,500 |
|
| Distribution and service fees payable | 2,262 |
|
| Accrued foreign taxes | 6,209 |
|
| | 342,623 |
|
| | |
| Net Assets | $ | 23,155,204 |
|
| | |
| Net Assets Consist of: | |
| Capital (par value and paid-in surplus) | $ | 23,540,181 |
|
| Distributable earnings | (384,977 | ) |
| | $ | 23,155,204 |
|
|
| | | | | | |
| | Net Assets | Shares Outstanding | Net Asset Value Per Share |
| Investor Class, $0.01 Par Value |
| $7,670,819 |
| 777,977 |
| $9.86 |
| I Class, $0.01 Par Value |
| $5,302 |
| 537 |
| $9.87 |
| Y Class, $0.01 Par Value |
| $5,312 |
| 538 |
| $9.87 |
| A Class, $0.01 Par Value |
| $6,603,405 |
| 670,098 |
| $9.85* |
| R Class, $0.01 Par Value |
| $2,192,700 |
| 222,688 |
| $9.85 |
| R5 Class, $0.01 Par Value |
| $4,450,000 |
| 450,906 |
| $9.87 |
| R6 Class, $0.01 Par Value |
| $2,227,666 |
| 225,689 |
| $9.87 |
*Maximum offering price $10.31 (net asset value divided by 0.955).
See Notes to Financial Statements.
|
| | | |
| FOR THE SIX MONTHS ENDED APRIL 30, 2019 (UNAUDITED) |
| Investment Income (Loss) | |
| Income: | |
| Interest (net of foreign taxes withheld of $5,083) | $ | 653,387 |
|
| | |
| Expenses: | |
| Management fees | 119,753 |
|
| Distribution and service fees: | |
| A Class | 8,009 |
|
| R Class | 5,328 |
|
| Directors' fees and expenses | 890 |
|
| Other expenses | 3,391 |
|
| | 137,371 |
|
| | |
| Net investment income (loss) | 516,016 |
|
| | |
| Realized and Unrealized Gain (Loss) | |
| Net realized gain (loss) on: | |
| Investment transactions (net of foreign tax expenses paid (refunded) of $(1,582)) | (237,186 | ) |
| Forward foreign currency exchange contract transactions | 175,324 |
|
| Futures contract transactions | (28,361 | ) |
| Swap agreement transactions | 64,538 |
|
| Foreign currency translation transactions | (7,190 | ) |
| | (32,875 | ) |
| | |
| Change in net unrealized appreciation (depreciation) on: | |
| Investments (includes (increase) decrease in accrued foreign taxes of $(4,895)) | 1,527,824 |
|
| Forward foreign currency exchange contracts | (450,995 | ) |
| Futures contracts | (10,200 | ) |
| Swap agreements | (118,577 | ) |
| Translation of assets and liabilities in foreign currencies | 13,931 |
|
| | 961,983 |
|
| | |
| Net realized and unrealized gain (loss) | 929,108 |
|
| | |
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,445,124 |
|
See Notes to Financial Statements.
|
|
| Statement of Changes in Net Assets |
|
| | | | | | |
| SIX MONTHS ENDED APRIL 30, 2019 (UNAUDITED) AND YEAR ENDED OCTOBER 31, 2018 |
| Increase (Decrease) in Net Assets | April 30, 2019 | October 31, 2018 |
| Operations | | |
| Net investment income (loss) | $ | 516,016 |
| $ | 962,903 |
|
| Net realized gain (loss) | (32,875 | ) | (152,242 | ) |
| Change in net unrealized appreciation (depreciation) | 961,983 |
| (1,516,824 | ) |
| Net increase (decrease) in net assets resulting from operations | 1,445,124 |
| (706,163 | ) |
| | | |
| Distributions to Shareholders | | |
| From earnings: | | |
| Investor Class | (641,126 | ) | (716,101 | ) |
| I Class | (275 | ) | (303 | ) |
| Y Class | (281 | ) | (307 | ) |
| A Class | (322,474 | ) | (359,357 | ) |
| R Class | (102,313 | ) | (114,523 | ) |
| R5 Class | (235,054 | ) | (259,152 | ) |
| R6 Class | (118,657 | ) | (130,682 | ) |
| Decrease in net assets from distributions | (1,420,180 | ) | (1,580,425 | ) |
| | | |
| Capital Share Transactions | | |
| Net increase (decrease) in net assets from capital share transactions (Note 5) | (3,435,751 | ) | 1,488,360 |
|
| | | |
| Net increase (decrease) in net assets | (3,410,807 | ) | (798,228 | ) |
| | | |
| Net Assets | | |
| Beginning of period | 26,566,011 |
| 27,364,239 |
|
| End of period | $ | 23,155,204 |
| $ | 26,566,011 |
|
See Notes to Financial Statements.
|
|
| Notes to Financial Statements |
APRIL 30, 2019 (UNAUDITED)
1. Organization
American Century Quantitative Equity Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. AC Alternatives Emerging Opportunities Total Return Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek total return.
The fund offers the Investor Class, I Class, Y Class, A Class, R Class, R5 Class and R6 Class. The A Class may incur an initial sales charge and may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Fixed income securities are valued at the evaluated mean as provided by independent pricing services or at the mean of the most recent bid and asked prices as provided by investment dealers. Sovereign governments and agencies, corporate bonds, and U.S. Treasury and Government Agency securities are valued using market models that consider trade data, quotations from dealers and active market makers, relevant yield curve and spread data, creditworthiness, trade data or market information on comparable securities, and other relevant security specific information. Fixed income securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value. Exchange-traded futures contracts are valued at the settlement price as provided by the appropriate exchange. Swap agreements are valued at an evaluated mean as provided by independent pricing services or independent brokers. Forward foreign currency exchange contracts are valued at the mean of the appropriate forward exchange rate at the close of the NYSE as provided by an independent pricing service. Investments initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region.
Security Transactions — 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. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Interest income less foreign taxes withheld, if any, is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Inflation adjustments related to inflation-linked debt securities are reflected as interest income.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the 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. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. 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.
Multiple Class — All shares of the 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 fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually.
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 fund. In addition, in the normal course of business, the fund enters 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.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. ACIM owns 98% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class.
The annual management fee for each class is as follows:
|
| | | | | | |
| Investor Class | I Class | Y Class | A Class | R Class | R5 Class | R6 Class |
| 0.98% | 0.88% | 0.78% | 0.98% | 0.98% | 0.78% | 0.73% |
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 and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended April 30, 2019 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
4. Investment Transactions
Purchases of investment securities, excluding short-term investments, for the period ended April 30, 2019 totaled $23,751,248, of which $5,856,509 represented U.S. Treasury and Government Agency obligations.
Sales of investment securities, excluding short-term investments, for the period ended April 30, 2019 totaled $30,268,559, of which $7,128,328 represented U.S. Treasury and Government Agency obligations.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
|
| | | | | | | | | | |
| | Six months ended April 30, 2019 | Year ended
October 31, 2018 |
| | Shares | Amount | Shares | Amount |
| Investor Class/Shares Authorized | 50,000,000 |
| | 50,000,000 |
| |
| Sold | 23,800 |
| $ | 233,927 |
| 25,366 |
| $ | 260,066 |
|
| Issued in reinvestment of distributions | 67,971 |
| 638,923 |
| 70,069 |
| 716,101 |
|
| Redeemed | (518,884 | ) | (5,083,845 | ) | (35,225 | ) | (357,374 | ) |
| | (427,113 | ) | (4,210,995 | ) | 60,210 |
| 618,793 |
|
| I Class/Shares Authorized | 50,000,000 |
| | 50,000,000 |
| |
| Issued in reinvestment of distributions | 29 |
| 275 |
| 30 |
| 303 |
|
| Y Class/Shares Authorized | 50,000,000 |
| | 50,000,000 |
| |
| Issued in reinvestment of distributions | 30 |
| 281 |
| 30 |
| 307 |
|
| A Class/Shares Authorized | 45,000,000 |
| | 45,000,000 |
| |
| Issued in reinvestment of distributions | 34,306 |
| 322,474 |
| 35,162 |
| 359,357 |
|
| R Class/Shares Authorized | 35,000,000 |
| | 35,000,000 |
| |
| Sold | 647 |
| 6,312 |
| 1,184 |
| 12,016 |
|
| Issued in reinvestment of distributions | 10,884 |
| 102,313 |
| 11,206 |
| 114,523 |
|
| Redeemed | (1,036 | ) | (10,122 | ) | (679 | ) | (6,773 | ) |
| | 10,495 |
| 98,503 |
| 11,711 |
| 119,766 |
|
| R5 Class/Shares Authorized | 50,000,000 |
| | 50,000,000 |
| |
| Issued in reinvestment of distributions | 25,006 |
| 235,054 |
| 25,357 |
| 259,152 |
|
| R6 Class/Shares Authorized | 40,000,000 |
| | 40,000,000 |
| |
| Issued in reinvestment of distributions | 12,623 |
| 118,657 |
| 12,787 |
| 130,682 |
|
| Net increase (decrease) | (344,624 | ) | $ | (3,435,751 | ) | 145,287 |
| $ | 1,488,360 |
|
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. 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.
| |
| • | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
| |
| • | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
| |
| • | Level 3 valuation inputs consist of unobservable data (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.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
|
| | | | | | | | |
| | Level 1 | Level 2 | Level 3 |
| Assets | | | |
| Investment Securities | | | |
| Sovereign Governments and Agencies | — |
| $ | 10,570,084 |
| — |
|
| Corporate Bonds | — |
| 5,647,416 |
| — |
|
| U.S. Treasury Securities | — |
| 3,625,915 |
| — |
|
| Temporary Cash Investments | $ | 1,893 |
| 3,125,218 |
| — |
|
| | $ | 1,893 |
| $ | 22,968,633 |
| — |
|
| Other Financial Instruments | | | |
| Futures Contracts | $ | 19,402 |
| — |
| — |
|
| Forward Foreign Currency Exchange Contracts | — |
| $ | 185,585 |
| — |
|
| | $ | 19,402 |
| $ | 185,585 |
| — |
|
| | | | |
| Liabilities | | | |
| Other Financial Instruments | | | |
| Futures Contracts | $ | 18,790 |
| $ | 5,432 |
| — |
|
| Swap Agreements | — |
| 80,945 |
| — |
|
| Forward Foreign Currency Exchange Contracts | — |
| 234,379 |
| — |
|
| | $ | 18,790 |
| $ | 320,756 |
| — |
|
7. Derivative Instruments
Credit Risk — The fund is subject to credit risk in the normal course of pursuing its investment objectives. The value of a bond generally declines as the credit quality of its issuer declines. Credit default swap agreements enable a fund to buy/sell protection against a credit event of a specific issuer or index. A fund may attempt to enhance returns by selling protection or attempt to mitigate credit risk by buying protection. The buyer/seller of credit protection against a security or basket of securities may pay/receive an up-front or periodic payment to compensate for/against potential default events. Changes in value, including the periodic amounts of interest to be paid or received on swap agreements, are recorded as unrealized appreciation (depreciation) on swap agreements. Upon entering into a centrally cleared swap, a fund is required to deposit cash or securities (initial margin) with a financial intermediary in an amount equal to a certain percentage of the notional amount. Subsequent payments (variation margin) are made or received daily, in cash, by a fund. The variation margin is equal to the daily change in the value and is a component of unrealized gains and losses. Realized gain or loss is recorded upon receipt or payment of a periodic settlement or termination of swap agreements. Net realized and unrealized gains or losses occurring during the holding period of swap agreements are a component of net realized gain (loss) on swap agreement transactions and change in net unrealized appreciation (depreciation) on swap agreements, respectively. The risks of entering into swap agreements include the possible lack of liquidity, failure of the counterparty to meet its obligations, and that there may be unfavorable changes in the underlying investments or instruments. The fund's average notional amount held during the period was $5,081,667.
Foreign Currency Risk — The fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The value of foreign investments held by a fund may be significantly affected by changes in foreign currency exchange rates. The dollar value of a foreign security generally decreases when the value of the dollar rises against the foreign currency in which the security is denominated and tends to increase when the value of the dollar declines against such foreign currency. A fund may enter into forward foreign currency exchange contracts to reduce a fund's exposure to foreign currency exchange rate fluctuations or to gain exposure to the fluctuations in the value of foreign currencies. The net U.S. dollar value of foreign currency underlying all contractual commitments held by a fund and the resulting unrealized appreciation or depreciation are determined daily. Realized gain or loss is recorded upon the termination of the contract. Net realized and unrealized gains or losses occurring during the holding period of forward foreign currency exchange contracts are a component of net realized gain (loss) on forward foreign currency exchange contract transactions and change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts, respectively. A fund bears the risk of an unfavorable change in the foreign currency exchange rate underlying the forward contract. Additionally, losses, up to the fair value, may arise if the counterparties do not perform under the contract terms. The fund's average U.S. dollar exposure to foreign currency risk derivative instruments held during the period was $28,032,882.
Interest Rate Risk — The fund is subject to interest rate risk in the normal course of pursuing its investment objectives. A fund may enter into futures contracts or interest rate swap agreements in order to manage its exposure to changes in market conditions. The value of bonds generally declines as interest rates rise. The risks of entering into interest rate risk derivative instruments include the possible lack of liquidity, failure of the counterparty to meet its obligations, and that there may be unfavorable changes in the underlying investments or instruments.
A fund may enter into futures contracts based on a bond index or a specific underlying security. A fund may purchase futures contracts to gain exposure to increases in market value or sell futures contracts to protect against a decline in market value. Upon entering into a futures contract, a fund will segregate cash, cash equivalents or other appropriate liquid securities on its records in amounts sufficient to meet requirements. Subsequent payments (variation margin) are made or received daily, in cash, by a fund. The variation margin is equal to the daily change in the contract value and is recorded as unrealized gains and losses. A fund recognizes a realized gain or loss when the futures contract is closed or expires. Net realized and unrealized gains or losses occurring during the holding period of futures contracts are a component of net realized gain (loss) on futures contract transactions and change in net unrealized appreciation (depreciation) on futures contracts, respectively. The fund's average notional exposure to these interest rate risk derivative instruments held during the period was $3,450,000 futures contracts purchased and $1,836,107 futures contracts sold.
A fund may enter into interest rate swap agreements to gain exposure to declines in interest rates, to protect against increases in interest rates, or to maintain its ability to generate income at prevailing interest rates. A fund will segregate cash, cash equivalents or other appropriate liquid securities on its records in amounts sufficient to meet requirements. Changes in value, including the periodic amounts of interest to be paid or received on swap agreements, are recorded as unrealized appreciation (depreciation) on swap agreements. Upon entering into a centrally cleared swap, a fund is required to deposit cash or securities (initial margin) with a financial intermediary in an amount equal to a certain percentage of the notional amount. Subsequent payments (variation margin) are made or received daily, in cash, by a fund. The variation margin is equal to the daily change in the value and is a component of unrealized gains and losses. Realized gain or loss is recorded upon receipt or payment of a periodic settlement or termination of swap agreements. Net realized and unrealized gains or losses occurring during the holding period of swap agreements are a component of net realized gain (loss) on swap agreement transactions and change in net unrealized appreciation (depreciation) on swap agreements, respectively. The fund's average notional amount on interest rate swap agreements held during the period was $7,246,184.
Value of Derivative Instruments as of April 30, 2019
|
| | | | | | | | |
| | Asset Derivatives | Liability Derivatives |
| Type of Risk Exposure | Location on Statement of Assets and Liabilities | Value | Location on Statement of Assets and Liabilities | Value |
| Credit Risk | Swap agreements | — |
| Swap agreements | $ | 80,945 |
|
| Foreign Currency Risk | Unrealized appreciation on forward foreign currency exchange contracts | $ | 185,585 |
| Unrealized depreciation on forward foreign currency exchange contracts | 234,379 |
|
| Interest Rate Risk | Receivable for variation margin on futures contracts* | 1,143 |
| Payable for variation margin on futures contracts* | 1,328 |
|
| | | $ | 186,728 |
| | $ | 316,652 |
|
* Included in the unrealized appreciation (depreciation) on futures contracts, as reported in the Schedule of Investments.
Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended April 30, 2019
|
| | | | | | | | |
| | Net Realized Gain (Loss) | Change in Net Unrealized Appreciation (Depreciation) |
| Type of Risk Exposure | Location on Statement of Operations | Value | Location on Statement of Operations | Value |
| Credit Risk | Net realized gain (loss) on swap agreement transactions | $ | (51,307 | ) | Change in net unrealized appreciation (depreciation) on swap agreements | $ | (32,576 | ) |
| Foreign Currency Risk | Net realized gain (loss) on forward foreign currency exchange contract transactions | 175,324 |
| Change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts | (450,995 | ) |
| Interest Rate Risk | Net realized gain (loss) on futures contract transactions | (28,361 | ) | Change in net unrealized appreciation (depreciation) on futures contracts | (10,200 | ) |
| Interest Rate Risk | Net realized gain (loss) on swap agreement transactions | 115,845 |
| Change in net unrealized appreciation (depreciation) on swap agreements | (86,001 | ) |
| | | $ | 211,501 |
| | $ | (579,772 | ) |
Counterparty Risk — The fund is subject to counterparty risk, or the risk that an institution will fail to perform its obligations to the fund. The investment advisor attempts to minimize counterparty risk prior to entering into transactions by performing extensive reviews of the creditworthiness of all potential counterparties. The fund may also enter into agreements that provide provisions for legally enforceable master netting arrangements to manage the credit risk between counterparties related to forward foreign currency exchange contracts and/or over-the-counter swap agreements. A master netting arrangement provides for the net settlement of multiple contracts with a single counterparty through a single payment in the event of default or termination of any one contract. To mitigate counterparty risk, the fund may receive assets or be required to pledge assets at the custodian bank or with a broker as designated under prescribed collateral provisions.
The fund does not offset assets and liabilities subject to master netting arrangements on the Statement of Assets and Liabilities for financial reporting purposes. The fund’s asset derivatives and liability derivatives that are subject to legally enforceable offsetting arrangements as of period end were as follows:
|
| | | | | | | | | | | |
| Counterparty | Gross Amount
on Statement
of Assets
and Liabilities | Amount
Eligible
for Offset | Collateral | Net
Exposure* |
| Assets | | | | |
| Goldman Sachs & Co. | $ | 109,432 |
| $ | (109,432 | ) | — |
| — |
|
| JPMorgan Chase Bank N.A. | 3,349 |
| (3,349 | ) | — |
| — |
|
| Morgan Stanley | 11,657 |
| (11,657 | ) | — |
| — |
|
| UBS AG | 61,147 |
| (18,257 | ) | — |
| $ | 42,890 |
|
| | $ | 185,585 |
| $ | (142,695 | ) | — |
| $ | 42,890 |
|
| | | | | |
| Liabilities | | | | |
| Bank of America N.A. | $ | 48,505 |
| — |
| — |
| $ | 48,505 |
|
| Goldman Sachs & Co. | 224,790 |
| $ | (109,432 | ) | — |
| 115,358 |
|
| JPMorgan Chase Bank N.A. | 6,669 |
| (3,349 | ) | — |
| 3,320 |
|
| Morgan Stanley | 17,103 |
| (11,657 | ) | — |
| 5,446 |
|
| UBS AG | 18,257 |
| (18,257 | ) | — |
| — |
|
| | $ | 315,324 |
| $ | (142,695 | ) | — |
| $ | 172,629 |
|
* The net exposure represents the amount receivable from the counterparty or amount payable to the counterparty in the event of default or termination.
8. Risk Factors
There are certain risks involved in investing in foreign securities. These risks include those resulting from 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. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
Issuers of high-yield securities (also known as “junk bonds”) are more vulnerable to real or perceived economic changes (such as an economic downturn or a prolonged period of rising interest rates), political changes or adverse developments specific to an issuer. These factors may be more likely to cause an issuer of low quality bonds to default on its obligations.
The fund may also be subject to liquidity risk. During periods of market turbulence or unusually low trading activity, in order to meet redemptions it may be necessary for the fund to sell securities at prices that could have an adverse effect on the fund’s share price.
The fund’s investment process may result in high portfolio turnover, which could mean high transaction costs, affecting both performance and capital gains tax liabilities to investors.
9. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
|
| | | |
| Federal tax cost of investments | $ | 22,789,752 |
|
| Gross tax appreciation of investments | $ | 310,866 |
|
| Gross tax depreciation of investments | (130,092 | ) |
| Net tax appreciation (depreciation) of investments | $ | 180,774 |
|
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of October 31, 2018, the fund had accumulated short-term capital losses of $(233,796) and accumulated long-term capital losses of $(130,330), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
10. Recently Issued Accounting Standards
In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities” (ASU 2017-08). ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the impact that adopting ASU 2017-08 will have on the financial statements.
11. Subsequent Events
On June 19, 2019, the Board of Directors approved a plan of liquidation for the fund. The liquidation date is expected to be August 23, 2019.
|
| | | | | | | | | | | | | | | | | |
| For a Share Outstanding Throughout the Years Ended October 31 (except as noted) | | | | | |
| Per-Share Data | | | | | | | | | Ratios and Supplemental Data |
| | | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| | Net Asset
Value,
Beginning
of Period | Net
Investment
Income
(Loss)(1) | Net
Realized
and
Unrealized
Gain (Loss) | Total From
Investment
Operations | Net
Investment
Income | Net
Realized
Gains | Total
Distributions | Net Asset
Value,
End
of Period | Total
Return(2) | Operating
Expenses | Operating
Expenses
(before
expense
waiver) | Net
Investment
Income
(Loss) | Net
Investment
Income
(Loss)
(before
expense
waiver) | Portfolio
Turnover
Rate | Net
Assets,
End of
Period
(in thousands) |
| Investor Class | | | | | | | | | | | | | | |
2019(3) | $9.87 | 0.20 | 0.32 | 0.52 | (0.53) | — | (0.53) | $9.86 | 5.55% | 1.01%(4) | 1.01%(4) | 4.04%(4) | 4.04%(4) | 103% |
| $7,671 |
|
| 2018 | $10.74 | 0.36 | (0.60) | (0.24) | (0.48) | (0.15) | (0.63) | $9.87 | (2.48)% | 1.16% | 1.23% | 3.57% | 3.50% | 127% |
| $11,892 |
|
2017(5) | $10.00 | 0.20 | 0.55 | 0.75 | (0.01) | — | (0.01) | $10.74 | 7.53% | 1.21%(4) | 1.31%(4) | 2.15%(4) | 2.05%(4) | 208% |
| $12,301 |
|
| I Class | | | | | | | | | | | | | |
2019(3) | $9.88 | 0.20 | 0.33 | 0.53 | (0.54) | — | (0.54) | $9.87 | 5.65% | 0.91%(4) | 0.91%(4) | 4.14%(4) | 4.14%(4) | 103% |
| $5 |
|
| 2018 | $10.75 | 0.38 | (0.61) | (0.23) | (0.49) | (0.15) | (0.64) | $9.88 | (2.40)% | 1.06% | 1.13% | 3.67% | 3.60% | 127% |
| $5 |
|
2017(6) | $10.45 | 0.13 | 0.17 | 0.30 | — | — | — | $10.75 | 2.87% | 1.11%(4) | 1.21%(4) | 2.21%(4) | 2.11%(4) | 208%(7) |
| $5 |
|
| Y Class | | | | | | | | | | | | | |
2019(3) | $9.88 | 0.21 | 0.33 | 0.54 | (0.55) | — | (0.55) | $9.87 | 5.76% | 0.81%(4) | 0.81%(4) | 4.24%(4) | 4.24%(4) | 103% |
| $5 |
|
| 2018 | $10.75 | 0.39 | (0.62) | (0.23) | (0.49) | (0.15) | (0.64) | $9.88 | (2.33)% | 0.96% | 1.03% | 3.77% | 3.70% | 127% |
| $5 |
|
2017(6) | $10.45 | 0.14 | 0.16 | 0.30 | — | — | — | $10.75 | 2.87% | 1.01%(4) | 1.11%(4) | 2.31%(4) | 2.21%(4) | 208%(7) |
| $5 |
|
|
| | | | | | | | | | | | | | | | | |
| For a Share Outstanding Throughout the Years Ended October 31 (except as noted) | | | | | |
| Per-Share Data | | | | | | | | | Ratios and Supplemental Data |
| | | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| | Net Asset
Value,
Beginning
of Period | Net
Investment
Income
(Loss)(1) | Net
Realized
and
Unrealized
Gain (Loss) | Total From
Investment
Operations | Net
Investment
Income | Net
Realized
Gains | Total
Distributions | Net Asset
Value,
End
of Period | Total
Return(2) | Operating
Expenses | Operating
Expenses
(before
expense
waiver) | Net
Investment
Income
(Loss) | Net
Investment
Income
(Loss)
(before
expense
waiver) | Portfolio
Turnover
Rate | Net
Assets,
End of
Period
(in thousands) |
| A Class | | | | | | | | | | | | | | |
2019(3) | $9.85 | 0.18 | 0.33 | 0.51 | (0.51) | — | (0.51) | $9.85 | 5.40% | 1.26%(4) | 1.26%(4) | 3.79%(4) | 3.79%(4) | 103% |
| $6,603 |
|
| 2018 | $10.72 | 0.34 | (0.61) | (0.27) | (0.45) | (0.15) | (0.60) | $9.85 | (2.74)% | 1.41% | 1.48% | 3.32% | 3.25% | 127% |
| $6,261 |
|
2017(5) | $10.00 | 0.18 | 0.55 | 0.73 | (0.01) | — | (0.01) | $10.72 | 7.31% | 1.46%(4) | 1.56%(4) | 1.90%(4) | 1.80%(4) | 208% |
| $6,440 |
|
| R Class | | | | | | | | | | |
2019(3) | $9.83 | 0.17 | 0.33 | 0.50 | (0.48) | — | (0.48) | $9.85 | 5.34% | 1.51%(4) | 1.51%(4) | 3.54%(4) | 3.54%(4) | 103% |
| $2,193 |
|
| 2018 | $10.70 | 0.31 | (0.61) | (0.30) | (0.42) | (0.15) | (0.57) | $9.83 | (3.00)% | 1.66% | 1.73% | 3.07% | 3.00% | 127% |
| $2,085 |
|
2017(5) | $10.00 | 0.16 | 0.55 | 0.71 | (0.01) | — | (0.01) | $10.70 | 7.09% | 1.71%(4) | 1.81%(4) | 1.65%(4) | 1.55%(4) | 208% |
| $2,145 |
|
| R5 Class | | | | | | | | | | |
2019(3) | $9.89 | 0.21 | 0.32 | 0.53 | (0.55) | — | (0.55) | $9.87 | 5.76% | 0.81%(4) | 0.81%(4) | 4.24%(4) | 4.24%(4) | 103% |
| $4,450 |
|
| 2018 | $10.76 | 0.39 | (0.61) | (0.22) | (0.50) | (0.15) | (0.65) | $9.89 | (2.37)% | 0.96% | 1.03% | 3.77% | 3.70% | 127% |
| $4,210 |
|
2017(5) | $10.00 | 0.22 | 0.55 | 0.77 | (0.01) | — | (0.01) | $10.76 | 7.75% | 1.01%(4) | 1.11%(4) | 2.35%(4) | 2.25%(4) | 208% |
| $4,311 |
|
| R6 Class | | | | | | | | | | |
2019(3) | $9.89 | 0.21 | 0.33 | 0.54 | (0.56) | — | (0.56) | $9.87 | 5.71% | 0.76%(4) | 0.76%(4) | 4.29%(4) | 4.29%(4) | 103% |
| $2,228 |
|
| 2018 | $10.77 | 0.39 | (0.61) | (0.22) | (0.51) | (0.15) | (0.66) | $9.89 | (2.31)% | 0.91% | 0.98% | 3.82% | 3.75% | 127% |
| $2,107 |
|
2017(5) | $10.00 | 0.23 | 0.55 | 0.78 | (0.01) | — | (0.01) | $10.77 | 7.85% | 0.96%(4) | 1.06%(4) | 2.40%(4) | 2.30%(4) | 208% |
| $2,156 |
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|
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| Notes to Financial Highlights |
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| (1) | Computed using average shares outstanding throughout the period. |
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| (2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
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| (3) | Six months ended April 30, 2019 (unaudited). |
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| (5) | December 6, 2016 (fund inception) through October 31, 2017. |
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| (6) | April 10, 2017 (commencement of sale) through October 31, 2017. |
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| (7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the period December 6, 2016 (fund inception) through October 31, 2017. |
See Notes to Financial Statements.
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts 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. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
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 (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
Descriptions of the principles and policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund are available without charge, upon request, by calling 1-800-345-2021 or visiting the "About Us" page of American Century Investments’ website at americancentury.com. A description of the policies is also available 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 fund files its 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 or as an exhibit to its reports on Form N-PORT. The fund’s Forms N-Q and Form N-PORT reports are available on the SEC’s website at sec.gov. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
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| 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 Relay Service for the Deaf | 711 | |
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| American Century Quantitative Equity Funds, Inc. | |
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Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |
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| 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. | |
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©2019 American Century Proprietary Holdings, Inc. All rights reserved.
CL-SAN-92551 1906 | |
ITEM 2. CODE OF ETHICS.
Not applicable for semiannual report filings.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semiannual report filings.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semiannual report filings.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable for semiannual report filings.
ITEM 6. INVESTMENTS.
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| (a) | The schedule of investments is included as part of the report to stockholders filed under Item 1 of this Form. |
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.
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| (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.
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| (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 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. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
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| (a)(1) | Not applicable for semiannual report filings. |
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| (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. |
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| (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.
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| Registrant: | American Century Quantitative Equity Funds, Inc. |
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| By: | /s/ Jonathan S. Thomas | |
| | Name: | Jonathan S. Thomas | |
| | Title: | President | |
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| Date: | June 27, 2019 | |
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.
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| By: | /s/ Jonathan S. Thomas | |
| | Name: | Jonathan S. Thomas | |
| | Title: | President | |
| | | (principal executive officer) | |
| | | | |
| Date: | June 27, 2019 | |
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| By: | /s/ R. Wes Campbell | |
| | Name: | R. Wes Campbell | |
| | Title: | Treasurer and | |
| | | Chief Financial Officer | |
| | | (principal financial officer) | |
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| Date: | June 27, 2019 | |
