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: | 06-30 | |||||||||||||||||||
Date of reporting period: | 12-31-2020 |
ITEM 1. REPORTS TO STOCKHOLDERS.
(a)
Semiannual Report | |||||
December 31, 2020 | |||||
Disciplined Core Value Fund | |||||
Investor Class (BIGRX) | |||||
I Class (AMGIX) | |||||
A Class (AMADX) | |||||
C Class (ACGCX) | |||||
R Class (AICRX) | |||||
R5 Class (AICGX) |
Table of Contents |
President's Letter | |||||
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Additional Information |
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.
President’s Letter |
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended December 31, 2020. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Stocks Soared as Backdrop Improved
The reporting period began amid an extraordinary recovery from massive market and economic disruptions triggered by the COVID-19 pandemic. Thanks to swift and aggressive action from central banks and federal governments, stocks and other riskier assets rebounded quickly as investors regained confidence in the global financial markets. In addition, the gradual reopening of economies along with COVID-19 treatment and vaccine progress also helped fuel the market's summer recovery.
Challenges related to the virus’s spread and the upcoming U.S. elections emerged in the fall. However, the November 3 election results removed some of the prevailing political uncertainty. Additionally, U.S. and European regulatory agencies approved the emergency use of two COVID-19 vaccines, and the U.S. Congress passed a second coronavirus fiscal aid package. These events, along with the U.K.’s orderly exit from the European Union, prompted a strong rally among global stocks. Investors looked ahead optimistically, even as a surge in COVID-19 infection rates triggered new lockdown measures.
Overall, global stocks delivered robust six-month returns. Non-U.S. stocks generally outpaced U.S. stocks, and within the U.S. market, small-cap stocks (Russell 2000 Index) were top performers, gaining nearly 38%. Growth stocks modestly outperformed value stocks across the board.
A Return to Normalcy
The return to pre-pandemic life appears to be on the horizon now that the first COVID-19 vaccines are available. In addition, medical professionals continue to improve treatment protocols for those afflicted with the virus. However, until the vaccine is widely distributed, investors may face periods of outbreak-related disruptions, economic uncertainty and heightened market volatility. These influences can be unsettling, but they tend to be temporary.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
DECEMBER 31, 2020 | |||||
Top Ten Holdings | % of net assets | ||||
JPMorgan Chase & Co. | 2.3% | ||||
Berkshire Hathaway, Inc., Class B | 2.0% | ||||
Verizon Communications, Inc. | 1.8% | ||||
Johnson & Johnson | 1.7% | ||||
Alphabet, Inc., Class A | 1.6% | ||||
Citigroup, Inc. | 1.6% | ||||
Apple, Inc. | 1.5% | ||||
Bristol-Myers Squibb Co. | 1.5% | ||||
Pfizer, Inc. | 1.4% | ||||
Cisco Systems, Inc. | 1.3% | ||||
Top Five Industries | % of net assets | ||||
Banks | 7.0% | ||||
Pharmaceuticals | 5.7% | ||||
Chemicals | 5.4% | ||||
Health Care Providers and Services | 5.0% | ||||
Semiconductors and Semiconductor Equipment | 4.6% | ||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 98.1% | ||||
Temporary Cash Investments | 1.8% | ||||
Other Assets and Liabilities | 0.1% |
3
Shareholder Fee Example |
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 July 1, 2020 to December 31, 2020.
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 through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual 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 $25.00 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.
4
Beginning Account Value 7/1/20 | Ending Account Value 12/31/20 | Expenses Paid During Period(1) 7/1/20 - 12/31/20 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,197.40 | $3.66 | 0.66% | ||||||||||
I Class | $1,000 | $1,198.70 | $2.55 | 0.46% | ||||||||||
A Class | $1,000 | $1,195.90 | $5.04 | 0.91% | ||||||||||
C Class | $1,000 | $1,191.40 | $9.17 | 1.66% | ||||||||||
R Class | $1,000 | $1,194.20 | $6.42 | 1.16% | ||||||||||
R5 Class | $1,000 | $1,198.60 | $2.55 | 0.46% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,021.88 | $3.36 | 0.66% | ||||||||||
I Class | $1,000 | $1,022.89 | $2.35 | 0.46% | ||||||||||
A Class | $1,000 | $1,020.62 | $4.63 | 0.91% | ||||||||||
C Class | $1,000 | $1,016.84 | $8.44 | 1.66% | ||||||||||
R Class | $1,000 | $1,019.36 | $5.90 | 1.16% | ||||||||||
R5 Class | $1,000 | $1,022.89 | $2.35 | 0.46% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
5
Schedule of Investments |
DECEMBER 31, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 98.1% | ||||||||
Aerospace and Defense — 1.3% | ||||||||
Boeing Co. (The) | 43,499 | $ | 9,311,396 | |||||
General Dynamics Corp. | 32,452 | 4,829,507 | ||||||
Raytheon Technologies Corp. | 130,093 | 9,302,950 | ||||||
Textron, Inc. | 156,681 | 7,572,393 | ||||||
31,016,246 | ||||||||
Air Freight and Logistics — 0.7% | ||||||||
United Parcel Service, Inc., Class B | 96,813 | 16,303,309 | ||||||
Auto Components — 1.1% | ||||||||
Adient plc(1) | 275,645 | 9,584,177 | ||||||
Lear Corp. | 69,074 | 10,984,838 | ||||||
Magna International, Inc. | 94,229 | 6,671,413 | ||||||
27,240,428 | ||||||||
Automobiles — 0.4% | ||||||||
General Motors Co. | 216,252 | 9,004,733 | ||||||
Banks — 7.0% | ||||||||
Bank of America Corp. | 828,034 | 25,097,710 | ||||||
Citigroup, Inc. | 618,800 | 38,155,208 | ||||||
Citizens Financial Group, Inc. | 38,729 | 1,384,949 | ||||||
Comerica, Inc. | 130,873 | 7,310,566 | ||||||
East West Bancorp, Inc. | 110,432 | 5,600,007 | ||||||
Fifth Third Bancorp | 400,309 | 11,036,519 | ||||||
JPMorgan Chase & Co. | 431,353 | 54,812,026 | ||||||
KeyCorp | 461,313 | 7,570,146 | ||||||
People's United Financial, Inc. | 416,329 | 5,383,134 | ||||||
Regions Financial Corp. | 728,410 | 11,741,969 | ||||||
168,092,234 | ||||||||
Beverages — 1.0% | ||||||||
Coca-Cola Co. (The) | 110,922 | 6,082,962 | ||||||
PepsiCo, Inc. | 123,476 | 18,311,491 | ||||||
24,394,453 | ||||||||
Biotechnology — 1.6% | ||||||||
AbbVie, Inc. | 268,000 | 28,716,200 | ||||||
Gilead Sciences, Inc. | 189,456 | 11,037,707 | ||||||
39,753,907 | ||||||||
Building Products — 0.3% | ||||||||
Masco Corp. | 125,521 | 6,894,869 | ||||||
Capital Markets — 2.7% | ||||||||
Blackstone Group, Inc. (The), Class A | 188,902 | 12,242,739 | ||||||
Brookfield Asset Management, Inc., Class A | 261,866 | 10,807,210 | ||||||
Moody's Corp. | 31,283 | 9,079,578 | ||||||
MSCI, Inc. | 12,685 | 5,664,233 | ||||||
State Street Corp. | 231,916 | 16,878,846 | ||||||
T. Rowe Price Group, Inc. | 74,924 | 11,342,744 | ||||||
66,015,350 | ||||||||
Chemicals — 5.4% | ||||||||
Air Products and Chemicals, Inc. | 16,198 | 4,425,618 |
6
Shares | Value | |||||||
CF Industries Holdings, Inc. | 94,976 | $ | 3,676,521 | |||||
Dow, Inc. | 332,887 | 18,475,228 | ||||||
Eastman Chemical Co. | 175,584 | 17,607,564 | ||||||
Ecolab, Inc. | 87,076 | 18,839,763 | ||||||
Huntsman Corp. | 420,091 | 10,561,088 | ||||||
Linde plc | 23,012 | 6,063,892 | ||||||
LyondellBasell Industries NV, Class A | 269,077 | 24,663,598 | ||||||
Mosaic Co. (The) | 488,980 | 11,251,430 | ||||||
Sherwin-Williams Co. (The) | 21,386 | 15,716,785 | ||||||
131,281,487 | ||||||||
Commercial Services and Supplies — 0.5% | ||||||||
Waste Management, Inc. | 101,313 | 11,947,842 | ||||||
Communications Equipment — 1.6% | ||||||||
Cisco Systems, Inc. | 729,457 | 32,643,201 | ||||||
Juniper Networks, Inc. | 113,980 | 2,565,690 | ||||||
Motorola Solutions, Inc. | 13,455 | 2,288,157 | ||||||
37,497,048 | ||||||||
Consumer Finance — 0.6% | ||||||||
Discover Financial Services | 27,359 | 2,476,810 | ||||||
Synchrony Financial | 331,694 | 11,513,099 | ||||||
13,989,909 | ||||||||
Containers and Packaging — 1.9% | ||||||||
Amcor plc | 913,795 | 10,755,367 | ||||||
International Paper Co. | 454,479 | 22,596,696 | ||||||
Packaging Corp. of America | 44,945 | 6,198,365 | ||||||
WestRock Co. | 121,584 | 5,292,552 | ||||||
44,842,980 | ||||||||
Diversified Financial Services — 2.0% | ||||||||
Berkshire Hathaway, Inc., Class B(1) | 208,290 | 48,296,202 | ||||||
Diversified Telecommunication Services — 2.7% | ||||||||
AT&T, Inc. | 822,603 | 23,658,062 | ||||||
Verizon Communications, Inc. | 727,170 | 42,721,238 | ||||||
66,379,300 | ||||||||
Electric Utilities — 0.9% | ||||||||
NRG Energy, Inc. | 302,391 | 11,354,782 | ||||||
PPL Corp. | 408,853 | 11,529,655 | ||||||
22,884,437 | ||||||||
Electrical Equipment — 1.6% | ||||||||
Eaton Corp. plc | 72,514 | 8,711,832 | ||||||
Emerson Electric Co. | 207,644 | 16,688,348 | ||||||
Hubbell, Inc. | 82,554 | 12,943,642 | ||||||
38,343,822 | ||||||||
Electronic Equipment, Instruments and Components — 0.3% | ||||||||
Zebra Technologies Corp., Class A(1) | 17,539 | 6,740,764 | ||||||
Energy Equipment and Services — 0.7% | ||||||||
Baker Hughes Co. | 202,565 | 4,223,480 | ||||||
Schlumberger NV | 610,921 | 13,336,406 | ||||||
17,559,886 | ||||||||
Entertainment — 1.5% | ||||||||
Activision Blizzard, Inc. | 127,892 | 11,874,772 | ||||||
Madison Square Garden Sports Corp., Class A(1) | 61,480 | 11,318,468 | ||||||
Walt Disney Co. (The)(1) | 71,190 | 12,898,204 | ||||||
36,091,444 |
7
Shares | Value | |||||||
Equity Real Estate Investment Trusts (REITs) — 3.7% | ||||||||
CubeSmart | 278,485 | $ | 9,359,881 | |||||
Digital Realty Trust, Inc. | 17,110 | 2,387,016 | ||||||
Gaming and Leisure Properties, Inc. | 187,433 | 7,947,159 | ||||||
Iron Mountain, Inc. | 239,959 | 7,073,991 | ||||||
Life Storage, Inc. | 33,822 | 4,038,009 | ||||||
Public Storage | 36,351 | 8,394,536 | ||||||
Realty Income Corp. | 183,348 | 11,398,745 | ||||||
Simon Property Group, Inc. | 24,645 | 2,101,726 | ||||||
Spirit Realty Capital, Inc. | 275,374 | 11,061,774 | ||||||
STORE Capital Corp. | 111,163 | 3,777,319 | ||||||
VICI Properties, Inc. | 441,181 | 11,250,115 | ||||||
Weyerhaeuser Co. | 217,800 | 7,302,834 | ||||||
WP Carey, Inc. | 61,964 | 4,373,419 | ||||||
90,466,524 | ||||||||
Food Products — 1.3% | ||||||||
Campbell Soup Co. | 72,231 | 3,492,369 | ||||||
Hormel Foods Corp. | 155,225 | 7,235,037 | ||||||
J.M. Smucker Co. (The) | 23,093 | 2,669,551 | ||||||
Kellogg Co. | 112,331 | 6,990,358 | ||||||
Kraft Heinz Co. (The) | 324,448 | 11,245,368 | ||||||
31,632,683 | ||||||||
Gas Utilities — 0.2% | ||||||||
UGI Corp. | 110,925 | 3,877,938 | ||||||
Health Care Equipment and Supplies — 2.9% | ||||||||
Danaher Corp. | 116,159 | 25,803,560 | ||||||
DexCom, Inc.(1) | 12,483 | 4,615,215 | ||||||
Medtronic plc | 182,897 | 21,424,555 | ||||||
Penumbra, Inc.(1) | 53,626 | 9,384,550 | ||||||
Zimmer Biomet Holdings, Inc. | 61,788 | 9,520,913 | ||||||
70,748,793 | ||||||||
Health Care Providers and Services — 5.0% | ||||||||
AmerisourceBergen Corp. | 93,345 | 9,125,407 | ||||||
Anthem, Inc. | 34,549 | 11,093,338 | ||||||
Cardinal Health, Inc. | 289,354 | 15,497,800 | ||||||
Cigna Corp. | 14,899 | 3,101,674 | ||||||
CVS Health Corp. | 246,005 | 16,802,141 | ||||||
HCA Healthcare, Inc. | 26,854 | 4,416,409 | ||||||
Henry Schein, Inc.(1) | 156,210 | 10,444,201 | ||||||
Humana, Inc. | 34,800 | 14,277,396 | ||||||
McKesson Corp. | 105,186 | 18,293,949 | ||||||
UnitedHealth Group, Inc. | 48,467 | 16,996,408 | ||||||
120,048,723 | ||||||||
Health Care Technology — 0.3% | ||||||||
Cerner Corp. | 78,382 | 6,151,419 | ||||||
Hotels, Restaurants and Leisure — 2.4% | ||||||||
Aramark | 287,756 | 11,072,851 | ||||||
Boyd Gaming Corp.(1) | 258,159 | 11,080,184 | ||||||
Darden Restaurants, Inc. | 98,015 | 11,675,547 | ||||||
McDonald's Corp. | 45,815 | 9,830,983 | ||||||
Vail Resorts, Inc. | 37,971 | 10,592,390 | ||||||
Yum! Brands, Inc. | 27,016 | 2,932,857 | ||||||
57,184,812 |
8
Shares | Value | |||||||
Household Durables — 0.9% | ||||||||
Leggett & Platt, Inc. | 90,852 | $ | 4,024,744 | |||||
Mohawk Industries, Inc.(1) | 108,309 | 15,266,153 | ||||||
PulteGroup, Inc. | 53,709 | 2,315,932 | ||||||
21,606,829 | ||||||||
Household Products — 1.2% | ||||||||
Colgate-Palmolive Co. | 221,680 | 18,955,857 | ||||||
Procter & Gamble Co. (The) | 71,024 | 9,882,279 | ||||||
28,838,136 | ||||||||
Industrial Conglomerates — 2.1% | ||||||||
3M Co. | 160,277 | 28,014,817 | ||||||
Honeywell International, Inc. | 111,751 | 23,769,438 | ||||||
51,784,255 | ||||||||
Insurance — 1.0% | ||||||||
Athene Holding Ltd., Class A(1) | 100,925 | 4,353,904 | ||||||
Fidelity National Financial, Inc. | 247,421 | 9,671,687 | ||||||
Prudential Financial, Inc. | 134,626 | 10,510,252 | ||||||
24,535,843 | ||||||||
Interactive Media and Services — 1.6% | ||||||||
Alphabet, Inc., Class A(1) | 22,542 | 39,508,011 | ||||||
Internet and Direct Marketing Retail — 1.4% | ||||||||
Amazon.com, Inc.(1) | 6,421 | 20,912,747 | ||||||
Booking Holdings, Inc.(1) | 5,244 | 11,679,804 | ||||||
32,592,551 | ||||||||
IT Services — 3.0% | ||||||||
Akamai Technologies, Inc.(1) | 68,197 | 7,160,003 | ||||||
Cognizant Technology Solutions Corp., Class A | 84,821 | 6,951,081 | ||||||
International Business Machines Corp. | 257,795 | 32,451,235 | ||||||
PayPal Holdings, Inc.(1) | 13,399 | 3,138,046 | ||||||
Visa, Inc., Class A | 21,098 | 4,614,765 | ||||||
Western Union Co. (The) | 627,585 | 13,769,215 | ||||||
WEX, Inc.(1) | 20,417 | 4,155,472 | ||||||
72,239,817 | ||||||||
Life Sciences Tools and Services — 1.0% | ||||||||
Agilent Technologies, Inc. | 212,023 | 25,122,605 | ||||||
Machinery — 1.5% | ||||||||
Caterpillar, Inc. | 53,295 | 9,700,756 | ||||||
Cummins, Inc. | 32,544 | 7,390,742 | ||||||
Snap-on, Inc. | 69,684 | 11,925,720 | ||||||
Westinghouse Air Brake Technologies Corp. | 99,652 | 7,294,526 | ||||||
36,311,744 | ||||||||
Media — 2.6% | ||||||||
Comcast Corp., Class A | 409,914 | 21,479,494 | ||||||
Fox Corp., Class A | 213,394 | 6,214,033 | ||||||
Interpublic Group of Cos., Inc. (The) | 615,976 | 14,487,755 | ||||||
Liberty Broadband Corp., Class C(1) | 81,262 | 12,869,463 | ||||||
Omnicom Group, Inc. | 127,500 | 7,952,175 | ||||||
63,002,920 | ||||||||
Metals and Mining — 1.9% | ||||||||
Cleveland-Cliffs, Inc. | 839,216 | 12,218,985 | ||||||
Freeport-McMoRan, Inc. | 447,216 | 11,636,560 | ||||||
Nucor Corp. | 72,837 | 3,874,200 |
9
Shares | Value | |||||||
Reliance Steel & Aluminum Co. | 76,909 | $ | 9,209,853 | |||||
Steel Dynamics, Inc. | 242,446 | 8,938,984 | ||||||
45,878,582 | ||||||||
Multi-Utilities — 0.9% | ||||||||
CenterPoint Energy, Inc. | 351,397 | 7,604,231 | ||||||
Dominion Energy, Inc. | 200,927 | 15,109,710 | ||||||
22,713,941 | ||||||||
Multiline Retail — 1.1% | ||||||||
Dollar Tree, Inc.(1) | 48,538 | 5,244,045 | ||||||
Target Corp. | 115,226 | 20,340,846 | ||||||
25,584,891 | ||||||||
Oil, Gas and Consumable Fuels — 3.1% | ||||||||
Chevron Corp. | 311,558 | 26,311,073 | ||||||
Exxon Mobil Corp. | 315,851 | 13,019,378 | ||||||
New Fortress Energy, Inc. | 219,085 | 11,740,765 | ||||||
Phillips 66 | 162,389 | 11,357,487 | ||||||
Williams Cos., Inc. (The) | 678,672 | 13,607,374 | ||||||
76,036,077 | ||||||||
Pharmaceuticals — 5.7% | ||||||||
Bristol-Myers Squibb Co. | 568,017 | 35,234,094 | ||||||
Johnson & Johnson | 257,512 | 40,527,239 | ||||||
Merck & Co., Inc. | 355,087 | 29,046,117 | ||||||
Pfizer, Inc. | 891,621 | 32,820,569 | ||||||
137,628,019 | ||||||||
Professional Services — 0.2% | ||||||||
Robert Half International, Inc. | 74,840 | 4,676,003 | ||||||
Road and Rail — 1.1% | ||||||||
CSX Corp. | 53,015 | 4,811,111 | ||||||
J.B. Hunt Transport Services, Inc. | 51,363 | 7,018,754 | ||||||
Kansas City Southern | 69,426 | 14,171,930 | ||||||
26,001,795 | ||||||||
Semiconductors and Semiconductor Equipment — 4.6% | ||||||||
Advanced Micro Devices, Inc.(1) | 44,427 | 4,074,400 | ||||||
Applied Materials, Inc. | 205,645 | 17,747,163 | ||||||
Broadcom, Inc. | 56,880 | 24,904,908 | ||||||
Intel Corp. | 285,875 | 14,242,293 | ||||||
KLA Corp. | 16,597 | 4,297,129 | ||||||
Lam Research Corp. | 18,936 | 8,942,905 | ||||||
Micron Technology, Inc.(1) | 149,520 | 11,240,914 | ||||||
Texas Instruments, Inc. | 153,585 | 25,207,906 | ||||||
110,657,618 | ||||||||
Software — 4.5% | ||||||||
Adobe, Inc.(1) | 39,101 | 19,555,192 | ||||||
Autodesk, Inc.(1) | 8,433 | 2,574,932 | ||||||
Cloudflare, Inc., Class A(1) | 130,980 | 9,953,170 | ||||||
Microsoft Corp. | 127,943 | 28,457,082 | ||||||
Oracle Corp. (New York) | 75,275 | 4,869,540 | ||||||
Pegasystems, Inc. | 87,310 | 11,634,930 | ||||||
salesforce.com, Inc.(1) | 71,285 | 15,863,051 | ||||||
ServiceNow, Inc.(1) | 5,234 | 2,880,951 | ||||||
Varonis Systems, Inc.(1) | 77,485 | 12,677,321 | ||||||
108,466,169 |
10
Shares | Value | |||||||
Specialty Retail — 1.8% | ||||||||
AutoZone, Inc.(1) | 5,137 | $ | 6,089,605 | |||||
Burlington Stores, Inc.(1) | 46,899 | 12,266,434 | ||||||
Home Depot, Inc. (The) | 61,362 | 16,298,974 | ||||||
L Brands, Inc. | 73,472 | 2,732,424 | ||||||
Lowe's Cos., Inc. | 43,375 | 6,962,121 | ||||||
44,349,558 | ||||||||
Technology Hardware, Storage and Peripherals — 3.5% | ||||||||
Apple, Inc. | 281,090 | 37,297,832 | ||||||
HP, Inc. | 469,156 | 11,536,546 | ||||||
NetApp, Inc. | 167,081 | 11,067,446 | ||||||
Seagate Technology plc | 205,490 | 12,773,258 | ||||||
Western Digital Corp. | 208,763 | 11,563,383 | ||||||
84,238,465 | ||||||||
Textiles, Apparel and Luxury Goods — 1.4% | ||||||||
Levi Strauss & Co., Class A | 249,000 | 4,999,920 | ||||||
Ralph Lauren Corp. | 112,644 | 11,685,689 | ||||||
Tapestry, Inc. | 577,849 | 17,959,547 | ||||||
34,645,156 | ||||||||
Trading Companies and Distributors — 0.4% | ||||||||
Fastenal Co. | 195,524 | 9,547,437 | ||||||
TOTAL COMMON STOCKS (Cost $1,978,464,071) | 2,370,647,964 | |||||||
TEMPORARY CASH INVESTMENTS — 1.8% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.75%, 11/30/23 - 11/15/43, valued at $19,986,133), in a joint trading account at 0.06%, dated 12/31/20, due 1/4/21 (Delivery value $19,578,584) | 19,578,453 | |||||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 0.125%, 10/15/23, valued at $24,965,597), at 0.06%, dated 12/31/20, due 1/4/21 (Delivery value $24,476,163) | 24,476,000 | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 19,013 | 19,013 | ||||||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $44,073,466) | 44,073,466 | |||||||
TOTAL INVESTMENT SECURITIES — 99.9% (Cost $2,022,537,537) | 2,414,721,430 | |||||||
OTHER ASSETS AND LIABILITIES — 0.1% | 3,523,003 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 2,418,244,433 |
FUTURES CONTRACTS PURCHASED | ||||||||||||||
Reference Entity | Contracts | Expiration Date | Notional Amount | Unrealized Appreciation (Depreciation)^ | ||||||||||
S&P 500 E-Mini | 116 | March 2021 | $ | 21,743,040 | $ | 361,690 |
^Amount represents value and unrealized appreciation (depreciation).
NOTES TO SCHEDULE OF INVESTMENTS |
(1)Non-income producing.
See Notes to Financial Statements.
11
Statement of Assets and Liabilities |
DECEMBER 31, 2020 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $2,022,537,537) | $ | 2,414,721,430 | |||
Deposits with broker for futures contracts | 1,276,000 | ||||
Receivable for capital shares sold | 3,863,938 | ||||
Receivable for variation margin on futures contracts | 142,680 | ||||
Dividends and interest receivable | 3,440,887 | ||||
2,423,444,935 | |||||
Liabilities | |||||
Payable for capital shares redeemed | 3,905,909 | ||||
Accrued management fees | 1,248,249 | ||||
Distribution and service fees payable | 46,344 | ||||
5,200,502 | |||||
Net Assets | $ | 2,418,244,433 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 1,876,918,647 | |||
Distributable earnings | 541,325,786 | ||||
$ | 2,418,244,433 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $1,827,749,858 | 49,037,556 | $37.27 | ||||||||
I Class, $0.01 Par Value | $391,581,028 | 10,487,263 | $37.34 | ||||||||
A Class, $0.01 Par Value | $149,443,747 | 4,017,337 | $37.20* | ||||||||
C Class, $0.01 Par Value | $10,175,765 | 274,175 | $37.11 | ||||||||
R Class, $0.01 Par Value | $15,145,364 | 406,513 | $37.26 | ||||||||
R5 Class, $0.01 Par Value | $24,148,671 | 646,531 | $37.35 |
*Maximum offering price $39.47 (net asset value divided by 0.9425).
See Notes to Financial Statements.
12
Statement of Operations |
FOR THE SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends | $ | 29,787,900 | |||
Interest | 16,692 | ||||
29,804,592 | |||||
Expenses: | |||||
Management fees | 6,945,533 | ||||
Distribution and service fees: | |||||
A Class | 175,113 | ||||
C Class | 43,869 | ||||
R Class | 35,130 | ||||
Directors' fees and expenses | 77,330 | ||||
Other expenses | 9,956 | ||||
7,286,931 | |||||
Net investment income (loss) | 22,517,661 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | 404,601,975 | ||||
Futures contract transactions | 11,053,493 | ||||
415,655,468 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | (38,498,723) | ||||
Futures contracts | (522,337) | ||||
(39,021,060) | |||||
Net realized and unrealized gain (loss) | 376,634,408 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 399,152,069 |
See Notes to Financial Statements.
13
Statement of Changes in Net Assets |
SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED) AND YEAR ENDED JUNE 30, 2020 | ||||||||
Increase (Decrease) in Net Assets | December 31, 2020 | June 30, 2020 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 22,517,661 | $ | 44,006,855 | ||||
Net realized gain (loss) | 415,655,468 | 45,991,109 | ||||||
Change in net unrealized appreciation (depreciation) | (39,021,060) | (50,295,256) | ||||||
Net increase (decrease) in net assets resulting from operations | 399,152,069 | 39,702,708 | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (245,239,518) | (67,946,479) | ||||||
I Class | (51,244,021) | (12,272,211) | ||||||
A Class | (19,918,443) | (5,399,427) | ||||||
C Class | (1,325,433) | (260,089) | ||||||
R Class | (1,963,263) | (665,352) | ||||||
R5 Class | (3,302,746) | (617,245) | ||||||
Decrease in net assets from distributions | (322,993,424) | (87,160,803) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 312,786,293 | (137,072,165) | ||||||
Net increase (decrease) in net assets | 388,944,938 | (184,530,260) | ||||||
Net Assets | ||||||||
Beginning of period | 2,029,299,495 | 2,213,829,755 | ||||||
End of period | $ | 2,418,244,433 | $ | 2,029,299,495 |
See Notes to Financial Statements.
14
Notes to Financial Statements |
DECEMBER 31, 2020 (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. Disciplined Core Value Fund (formerly Income & Growth Fund) (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek long-term capital growth by investing in common stocks. Income is a secondary objective.
The fund offers the Investor Class, I Class, A Class, C Class, R Class and R5 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.
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 (NAV) 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.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price.
Open-end management investment companies are valued at the reported NAV 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.
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 NAV 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. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
15
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.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
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, if any, are generally declared and paid quarterly. Distributions from 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.
16
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 ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, 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. 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 fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds.
The Investment Category Fee range, the Complex Fee range and the effective annual management fee for each class for the period ended December 31, 2020 are as follows:
Investment Category Fee Range | Complex Fee Range | Effective Annual Management Fee | |||||||||
Investor Class | 0.3380% to 0.5200% | 0.2500% to 0.3100% | 0.65% | ||||||||
I Class | 0.0500% to 0.1100% | 0.45% | |||||||||
A Class | 0.2500% to 0.3100% | 0.65% | |||||||||
C Class | 0.2500% to 0.3100% | 0.65% | |||||||||
R Class | 0.2500% to 0.3100% | 0.65% | |||||||||
R5 Class | 0.0500% to 0.1100% | 0.45% |
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 ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. 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 December 31, 2020 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.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $74,398,806 and $52,267,097, respectively. The effect of interfund transactions on the Statement of Operations was $19,179,686 in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended December 31, 2020 were $2,338,967,849 and $2,303,580,000, respectively.
17
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended December 31, 2020 | Year ended June 30, 2020 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 700,000,000 | 370,000,000 | ||||||||||||
Sold | 2,209,085 | $ | 86,585,151 | 2,749,247 | $ | 97,021,684 | ||||||||
Issued in reinvestment of distributions | 6,333,698 | 232,247,781 | 1,711,370 | 64,723,217 | ||||||||||
Redeemed | (3,642,661) | (142,115,264) | (6,693,738) | (242,453,016) | ||||||||||
4,900,122 | 176,717,668 | (2,233,121) | (80,708,115) | |||||||||||
I Class/Shares Authorized | 140,000,000 | 40,000,000 | ||||||||||||
Sold | 2,616,373 | 102,561,540 | 1,482,368 | 52,890,938 | ||||||||||
Issued in reinvestment of distributions | 1,351,021 | 49,642,471 | 317,816 | 12,031,531 | ||||||||||
Redeemed | (1,033,873) | (40,560,065) | (2,559,456) | (94,053,880) | ||||||||||
2,933,521 | 111,643,946 | (759,272) | (29,131,411) | |||||||||||
A Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||||||
Sold | 388,459 | 15,096,747 | 681,396 | 24,560,801 | ||||||||||
Issued in reinvestment of distributions | 469,744 | 17,197,646 | 129,109 | 4,884,893 | ||||||||||
Redeemed | (470,484) | (18,250,940) | (1,324,116) | (48,422,778) | ||||||||||
387,719 | 14,043,453 | (513,611) | (18,977,084) | |||||||||||
C Class/Shares Authorized | 20,000,000 | 15,000,000 | ||||||||||||
Sold | 84,247 | 3,286,656 | 45,917 | 1,621,543 | ||||||||||
Issued in reinvestment of distributions | 33,007 | 1,205,196 | 6,114 | 232,367 | ||||||||||
Redeemed | (50,981) | (1,958,322) | (92,408) | (3,276,568) | ||||||||||
66,273 | 2,533,530 | (40,377) | (1,422,658) | |||||||||||
R Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 60,019 | 2,367,460 | 134,521 | 4,748,380 | ||||||||||
Issued in reinvestment of distributions | 49,252 | 1,802,711 | 11,377 | 431,716 | ||||||||||
Redeemed | (98,031) | (3,775,018) | (421,061) | (15,387,717) | ||||||||||
11,240 | 395,153 | (275,163) | (10,207,621) | |||||||||||
R5 Class/Shares Authorized | 40,000,000 | 50,000,000 | ||||||||||||
Sold | 184,995 | 7,363,761 | 176,026 | 6,570,965 | ||||||||||
Issued in reinvestment of distributions | 86,843 | 3,192,582 | 16,359 | 616,770 | ||||||||||
Redeemed | (79,793) | (3,103,800) | (106,978) | (3,813,011) | ||||||||||
192,045 | 7,452,543 | 85,407 | 3,374,724 | |||||||||||
Net increase (decrease) | 8,490,920 | $ | 312,786,293 | (3,736,137) | $ | (137,072,165) |
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).
18
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 | |||||||||||
Common Stocks | $ | 2,370,647,964 | — | — | |||||||
Temporary Cash Investments | 19,013 | $ | 44,054,453 | — | |||||||
$ | 2,370,666,977 | $ | 44,054,453 | — | |||||||
Other Financial Instruments | |||||||||||
Futures Contracts | $ | 361,690 | — | — |
7. Derivative Instruments
Equity Price Risk — The fund is subject to equity price risk in the normal course of pursuing its investment objectives. A fund may enter into futures contracts based on an equity index in order to manage its exposure to changes in market conditions. 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 is required to deposit either cash or securities in an amount equal to a certain percentage of the contract value (initial margin). 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 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. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. The fund's average notional exposure to equity price risk derivative instruments held during the period was $39,853,646 futures contracts purchased.
The value of equity price risk derivative instruments as of December 31, 2020, is disclosed on the Statement of Assets and Liabilities as an asset of $142,680 in receivable for variation margin on futures contracts*. For the six months ended December 31, 2020, the effect of equity price risk derivative instruments on the Statement of Operations was $11,053,493 in net realized gain (loss) on futures contract transactions and $(522,337) in change in net unrealized appreciation (depreciation) on futures contracts.
* Included in the unrealized appreciation (depreciation) on futures contracts as reported in the Schedule of Investments.
8. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
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.
19
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 | $ | 2,030,606,023 | |||
Gross tax appreciation of investments | $ | 401,031,881 | |||
Gross tax depreciation of investments | (16,916,474) | ||||
Net tax appreciation (depreciation) of investments | $ | 384,115,407 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
20
Financial Highlights |
For a Share Outstanding Throughout the Years Ended June 30 (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 | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $35.99 | 0.40 | 6.58 | 6.98 | (0.39) | (5.31) | (5.70) | $37.27 | 19.74% | 0.66%(4) | 2.00%(4) | 108% | $1,827,750 | ||||||||||||||||||||||||||||
2020 | $36.82 | 0.76 | (0.07) | 0.69 | (0.77) | (0.75) | (1.52) | $35.99 | 1.70% | 0.67% | 2.08% | 100% | $1,588,537 | ||||||||||||||||||||||||||||
2019 | $39.61 | 0.78 | 0.63 | 1.41 | (0.73) | (3.47) | (4.20) | $36.82 | 4.43% | 0.67% | 2.07% | 72% | $1,707,536 | ||||||||||||||||||||||||||||
2018 | $37.90 | 0.93 | 4.40 | 5.33 | (0.88) | (2.74) | (3.62) | $39.61 | 14.32% | 0.66% | 2.33% | 77% | $1,751,738 | ||||||||||||||||||||||||||||
2017 | $33.91 | 0.79 | 4.55 | 5.34 | (0.76) | (0.59) | (1.35) | $37.90 | 15.95% | 0.67% | 2.16% | 81% | $1,691,048 | ||||||||||||||||||||||||||||
2016 | $36.78 | 0.82 | (0.61) | 0.21 | (0.84) | (2.24) | (3.08) | $33.91 | 1.00% | 0.68% | 2.40% | 79% | $1,551,664 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $36.05 | 0.44 | 6.60 | 7.04 | (0.44) | (5.31) | (5.75) | $37.34 | 19.87% | 0.46%(4) | 2.20%(4) | 108% | $391,581 | ||||||||||||||||||||||||||||
2020 | $36.88 | 0.83 | (0.07) | 0.76 | (0.84) | (0.75) | (1.59) | $36.05 | 1.90% | 0.47% | 2.28% | 100% | $272,307 | ||||||||||||||||||||||||||||
2019 | $39.66 | 0.85 | 0.65 | 1.50 | (0.81) | (3.47) | (4.28) | $36.88 | 4.65% | 0.47% | 2.27% | 72% | $306,583 | ||||||||||||||||||||||||||||
2018 | $37.94 | 0.99 | 4.43 | 5.42 | (0.96) | (2.74) | (3.70) | $39.66 | 14.55% | 0.46% | 2.53% | 77% | $274,687 | ||||||||||||||||||||||||||||
2017 | $33.95 | 0.86 | 4.55 | 5.41 | (0.83) | (0.59) | (1.42) | $37.94 | 16.16% | 0.47% | 2.36% | 81% | $181,620 | ||||||||||||||||||||||||||||
2016 | $36.82 | 0.88 | (0.60) | 0.28 | (0.91) | (2.24) | (3.15) | $33.95 | 1.21% | 0.48% | 2.60% | 79% | $127,626 |
For a Share Outstanding Throughout the Years Ended June 30 (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 | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
A Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $35.93 | 0.35 | 6.57 | 6.92 | (0.34) | (5.31) | (5.65) | $37.20 | 19.59% | 0.91%(4) | 1.75%(4) | 108% | $149,444 | ||||||||||||||||||||||||||||
2020 | $36.76 | 0.67 | (0.07) | 0.60 | (0.68) | (0.75) | (1.43) | $35.93 | 1.46% | 0.92% | 1.83% | 100% | $130,398 | ||||||||||||||||||||||||||||
2019 | $39.55 | 0.69 | 0.63 | 1.32 | (0.64) | (3.47) | (4.11) | $36.76 | 4.18% | 0.92% | 1.82% | 72% | $152,312 | ||||||||||||||||||||||||||||
2018 | $37.85 | 0.83 | 4.39 | 5.22 | (0.78) | (2.74) | (3.52) | $39.55 | 14.03% | 0.91% | 2.08% | 77% | $155,233 | ||||||||||||||||||||||||||||
2017 | $33.87 | 0.69 | 4.55 | 5.24 | (0.67) | (0.59) | (1.26) | $37.85 | 15.65% | 0.92% | 1.91% | 81% | $156,863 | ||||||||||||||||||||||||||||
2016 | $36.74 | 0.73 | (0.61) | 0.12 | (0.75) | (2.24) | (2.99) | $33.87 | 0.75% | 0.93% | 2.15% | 79% | $205,390 | ||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $35.84 | 0.20 | 6.56 | 6.76 | (0.18) | (5.31) | (5.49) | $37.11 | 19.14% | 1.66%(4) | 1.00%(4) | 108% | $10,176 | ||||||||||||||||||||||||||||
2020 | $36.68 | 0.39 | (0.08) | 0.31 | (0.40) | (0.75) | (1.15) | $35.84 | 0.68% | 1.67% | 1.08% | 100% | $7,452 | ||||||||||||||||||||||||||||
2019 | $39.48 | 0.41 | 0.63 | 1.04 | (0.37) | (3.47) | (3.84) | $36.68 | 3.40% | 1.67% | 1.07% | 72% | $9,107 | ||||||||||||||||||||||||||||
2018 | $37.79 | 0.53 | 4.39 | 4.92 | (0.49) | (2.74) | (3.23) | $39.48 | 13.18% | 1.66% | 1.33% | 77% | $8,557 | ||||||||||||||||||||||||||||
2017 | $33.82 | 0.42 | 4.53 | 4.95 | (0.39) | (0.59) | (0.98) | $37.79 | 14.77% | 1.67% | 1.16% | 81% | $7,368 | ||||||||||||||||||||||||||||
2016 | $36.68 | 0.47 | (0.60) | (0.13) | (0.49) | (2.24) | (2.73) | $33.82 | 0.01% | 1.68% | 1.40% | 79% | $6,734 | ||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $35.97 | 0.30 | 6.58 | 6.88 | (0.28) | (5.31) | (5.59) | $37.26 | 19.42% | 1.16%(4) | 1.50%(4) | 108% | $15,145 | ||||||||||||||||||||||||||||
2020 | $36.81 | 0.58 | (0.09) | 0.49 | (0.58) | (0.75) | (1.33) | $35.97 | 1.18% | 1.17% | 1.58% | 100% | $14,218 | ||||||||||||||||||||||||||||
2019 | $39.59 | 0.60 | 0.64 | 1.24 | (0.55) | (3.47) | (4.02) | $36.81 | 3.95% | 1.17% | 1.57% | 72% | $24,676 | ||||||||||||||||||||||||||||
2018 | $37.89 | 0.73 | 4.40 | 5.13 | (0.69) | (2.74) | (3.43) | $39.59 | 13.73% | 1.16% | 1.83% | 77% | $25,298 | ||||||||||||||||||||||||||||
2017 | $33.91 | 0.60 | 4.55 | 5.15 | (0.58) | (0.59) | (1.17) | $37.89 | 15.34% | 1.17% | 1.66% | 81% | $28,052 | ||||||||||||||||||||||||||||
2016 | $36.77 | 0.65 | (0.60) | 0.05 | (0.67) | (2.24) | (2.91) | $33.91 | 0.52% | 1.18% | 1.90% | 79% | $23,290 |
For a Share Outstanding Throughout the Years Ended June 30 (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 | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
R5 Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $36.06 | 0.44 | 6.60 | 7.04 | (0.44) | (5.31) | (5.75) | $37.35 | 19.86% | 0.46%(4) | 2.20%(4) | 108% | $24,149 | ||||||||||||||||||||||||||||
2020 | $36.89 | 0.83 | (0.07) | 0.76 | (0.84) | (0.75) | (1.59) | $36.06 | 1.90% | 0.47% | 2.28% | 100% | $16,388 | ||||||||||||||||||||||||||||
2019 | $39.66 | 0.88 | 0.63 | 1.51 | (0.81) | (3.47) | (4.28) | $36.89 | 4.68% | 0.47% | 2.27% | 72% | $13,615 | ||||||||||||||||||||||||||||
2018 | $37.95 | 0.91 | 4.50 | 5.41 | (0.96) | (2.74) | (3.70) | $39.66 | 14.52% | 0.46% | 2.53% | 77% | $4,241 | ||||||||||||||||||||||||||||
2017(5) | $37.51 | 0.20 | 0.43 | 0.63 | (0.19) | — | (0.19) | $37.95 | 1.68% | 0.47%(4) | 2.37%(4) | 81%(6) | $175 |
Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(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.
(3)Six months ended December 31, 2020 (unaudited).
(4)Annualized.
(5)April 10, 2017 (commencement of sale) through June 30, 2017.
(6)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended June 30, 2017.
See Notes to Financial Statements.
Additional Information |
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 American Century Investments’ website at americancentury.com/proxy. 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 americancentury.com/proxy. 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 as an exhibit to its reports on Form N-PORT. The fund’s 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.
24
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 | |||||||
American Century Quantitative Equity Funds, 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. | ||||||||
©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-91456 2102 |
Semiannual Report | |||||
December 31, 2020 | |||||
Disciplined Growth Fund | |||||
Investor Class (ADSIX) | |||||
I Class (ADCIX) | |||||
Y Class (ADCYX) | |||||
A Class (ADCVX) | |||||
C Class (ADCCX) | |||||
R Class (ADRRX) | |||||
R5 Class (ADGGX) |
Table of Contents |
President's Letter | |||||
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Additional Information |
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.
President’s Letter |
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended December 31, 2020. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Stocks Soared as Backdrop Improved
The reporting period began amid an extraordinary recovery from massive market and economic disruptions triggered by the COVID-19 pandemic. Thanks to swift and aggressive action from central banks and federal governments, stocks and other riskier assets rebounded quickly as investors regained confidence in the global financial markets. In addition, the gradual reopening of economies along with COVID-19 treatment and vaccine progress also helped fuel the market's summer recovery.
Challenges related to the virus’s spread and the upcoming U.S. elections emerged in the fall. However, the November 3 election results removed some of the prevailing political uncertainty. Additionally, U.S. and European regulatory agencies approved the emergency use of two COVID-19 vaccines, and the U.S. Congress passed a second coronavirus fiscal aid package. These events, along with the U.K.’s orderly exit from the European Union, prompted a strong rally among global stocks. Investors looked ahead optimistically, even as a surge in COVID-19 infection rates triggered new lockdown measures.
Overall, global stocks delivered robust six-month returns. Non-U.S. stocks generally outpaced U.S. stocks, and within the U.S. market, small-cap stocks (Russell 2000 Index) were top performers, gaining nearly 38%. Growth stocks modestly outperformed value stocks across the board.
A Return to Normalcy
The return to pre-pandemic life appears to be on the horizon now that the first COVID-19 vaccines are available. In addition, medical professionals continue to improve treatment protocols for those afflicted with the virus. However, until the vaccine is widely distributed, investors may face periods of outbreak-related disruptions, economic uncertainty and heightened market volatility. These influences can be unsettling, but they tend to be temporary.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
DECEMBER 31, 2020 | |||||
Top Ten Holdings | % of net assets | ||||
Apple, Inc. | 11.3% | ||||
Microsoft Corp. | 9.2% | ||||
Amazon.com, Inc. | 8.0% | ||||
Alphabet, Inc., Class A | 3.9% | ||||
Facebook, Inc., Class A | 3.8% | ||||
Tesla, Inc. | 2.9% | ||||
Visa, Inc., Class A | 2.4% | ||||
Mastercard, Inc., Class A | 2.1% | ||||
NVIDIA Corp. | 2.0% | ||||
ServiceNow, Inc. | 1.8% | ||||
Top Five Industries | % of net assets | ||||
Software | 20.5% | ||||
Technology Hardware, Storage and Peripherals | 11.8% | ||||
Semiconductors and Semiconductor Equipment | 10.1% | ||||
Internet and Direct Marketing Retail | 9.2% | ||||
Interactive Media and Services | 7.7% | ||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 99.7% | ||||
Other Assets and Liabilities | 0.3% |
3
Shareholder Fee Example |
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 July 1, 2020 to December 31, 2020.
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 through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual 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 $25.00 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.
4
Beginning Account Value 7/1/20 | Ending Account Value 12/31/20 | Expenses Paid During Period(1) 7/1/20 - 12/31/20 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,188.80 | $5.52 | 1.00% | ||||||||||
I Class | $1,000 | $1,189.70 | $4.42 | 0.80% | ||||||||||
Y Class | $1,000 | $1,190.40 | $4.14 | 0.75% | ||||||||||
A Class | $1,000 | $1,187.40 | $6.89 | 1.25% | ||||||||||
C Class | $1,000 | $1,182.60 | $11.00 | 2.00% | ||||||||||
R Class | $1,000 | $1,185.50 | $8.26 | 1.50% | ||||||||||
R5 Class | $1,000 | $1,190.10 | $4.42 | 0.80% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,020.16 | $5.09 | 1.00% | ||||||||||
I Class | $1,000 | $1,021.17 | $4.08 | 0.80% | ||||||||||
Y Class | $1,000 | $1,021.43 | $3.82 | 0.75% | ||||||||||
A Class | $1,000 | $1,018.90 | $6.36 | 1.25% | ||||||||||
C Class | $1,000 | $1,015.12 | $10.16 | 2.00% | ||||||||||
R Class | $1,000 | $1,017.64 | $7.63 | 1.50% | ||||||||||
R5 Class | $1,000 | $1,021.17 | $4.08 | 0.80% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
5
Schedule of Investments |
DECEMBER 31, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.7% | ||||||||
Aerospace and Defense — 0.1% | ||||||||
Boeing Co. (The) | 2,991 | $ | 640,253 | |||||
Air Freight and Logistics — 0.3% | ||||||||
United Parcel Service, Inc., Class B | 7,593 | 1,278,661 | ||||||
Auto Components — 0.5% | ||||||||
Adient plc(1) | 32,732 | 1,138,092 | ||||||
Aptiv plc | 4,243 | 552,820 | ||||||
Visteon Corp.(1) | 4,069 | 510,741 | ||||||
2,201,653 | ||||||||
Automobiles — 3.1% | ||||||||
General Motors Co. | 26,793 | 1,115,661 | ||||||
Tesla, Inc.(1) | 19,733 | 13,924,986 | ||||||
15,040,647 | ||||||||
Biotechnology — 2.0% | ||||||||
AbbVie, Inc. | 51,411 | 5,508,689 | ||||||
Moderna, Inc.(1) | 7,679 | 802,225 | ||||||
Seagen, Inc.(1) | 10,502 | 1,839,320 | ||||||
Vertex Pharmaceuticals, Inc.(1) | 6,707 | 1,585,132 | ||||||
9,735,366 | ||||||||
Building Products — 0.8% | ||||||||
Advanced Drainage Systems, Inc. | 7,339 | 613,394 | ||||||
AO Smith Corp. | 19,741 | 1,082,201 | ||||||
AZEK Co., Inc. (The)(1) | 17,247 | 663,147 | ||||||
Carrier Global Corp. | 35,501 | 1,339,098 | ||||||
3,697,840 | ||||||||
Capital Markets — 0.8% | ||||||||
MSCI, Inc. | 5,357 | 2,392,061 | ||||||
S&P Global, Inc. | 4,224 | 1,388,556 | ||||||
3,780,617 | ||||||||
Chemicals — 0.9% | ||||||||
Scotts Miracle-Gro Co. (The) | 13,446 | 2,677,637 | ||||||
Trinseo SA | 27,182 | 1,391,990 | ||||||
4,069,627 | ||||||||
Communications Equipment — 0.1% | ||||||||
Motorola Solutions, Inc. | 3,077 | 523,275 | ||||||
Construction and Engineering — 0.7% | ||||||||
Ameresco, Inc., Class A(1) | 12,030 | 628,447 | ||||||
EMCOR Group, Inc. | 31,395 | 2,871,387 | ||||||
3,499,834 | ||||||||
Consumer Finance — 0.1% | ||||||||
Capital One Financial Corp. | 5,675 | 560,974 | ||||||
Containers and Packaging — 0.3% | ||||||||
Avery Dennison Corp. | 8,817 | 1,367,605 | ||||||
Electrical Equipment — 0.3% | ||||||||
TPI Composites, Inc.(1) | 12,228 | 645,394 | ||||||
Vertiv Holdings Co. | 43,791 | 817,578 | ||||||
1,462,972 |
6
Shares | Value | |||||||
Electronic Equipment, Instruments and Components — 0.5% | ||||||||
Itron, Inc.(1) | 6,268 | $ | 601,101 | |||||
Keysight Technologies, Inc.(1) | 13,707 | 1,810,558 | ||||||
2,411,659 | ||||||||
Entertainment — 2.2% | ||||||||
Electronic Arts, Inc. | 8,687 | 1,247,453 | ||||||
Netflix, Inc.(1) | 8,160 | 4,412,357 | ||||||
Roku, Inc.(1) | 4,014 | 1,332,728 | ||||||
Spotify Technology SA(1) | 1,813 | 570,479 | ||||||
Take-Two Interactive Software, Inc.(1) | 10,400 | 2,161,016 | ||||||
Walt Disney Co. (The)(1) | 3,396 | 615,287 | ||||||
10,339,320 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 0.7% | ||||||||
Crown Castle International Corp. | 12,491 | 1,988,442 | ||||||
Simon Property Group, Inc. | 18,264 | 1,557,554 | ||||||
3,545,996 | ||||||||
Food and Staples Retailing — 0.4% | ||||||||
Costco Wholesale Corp. | 4,724 | 1,779,909 | ||||||
Food Products — 0.6% | ||||||||
Freshpet, Inc.(1) | 11,058 | 1,570,125 | ||||||
Hershey Co. (The) | 8,623 | 1,313,542 | ||||||
2,883,667 | ||||||||
Health Care Equipment and Supplies — 3.6% | ||||||||
Align Technology, Inc.(1) | 4,470 | 2,388,679 | ||||||
DexCom, Inc.(1) | 7,518 | 2,779,555 | ||||||
IDEXX Laboratories, Inc.(1) | 6,281 | 3,139,683 | ||||||
Insulet Corp.(1) | 3,709 | 948,132 | ||||||
Intuitive Surgical, Inc.(1) | 1,914 | 1,565,843 | ||||||
Novocure Ltd.(1) | 17,983 | 3,111,778 | ||||||
Stryker Corp. | 6,695 | 1,640,543 | ||||||
West Pharmaceutical Services, Inc. | 5,750 | 1,629,033 | ||||||
17,203,246 | ||||||||
Health Care Providers and Services — 2.2% | ||||||||
Amedisys, Inc.(1) | 3,527 | 1,034,575 | ||||||
Chemed Corp. | 4,280 | 2,279,571 | ||||||
Guardant Health, Inc.(1) | 5,377 | 692,988 | ||||||
HCA Healthcare, Inc. | 8,511 | 1,399,719 | ||||||
UnitedHealth Group, Inc. | 14,265 | 5,002,450 | ||||||
10,409,303 | ||||||||
Health Care Technology — 0.2% | ||||||||
Veeva Systems, Inc., Class A(1) | 4,203 | 1,144,267 | ||||||
Hotels, Restaurants and Leisure — 1.1% | ||||||||
Chipotle Mexican Grill, Inc.(1) | 622 | 862,534 | ||||||
Starbucks Corp. | 26,275 | 2,810,899 | ||||||
Texas Roadhouse, Inc. | 6,553 | 512,182 | ||||||
Yum! Brands, Inc. | 11,816 | 1,282,745 | ||||||
5,468,360 | ||||||||
Household Durables — 0.3% | ||||||||
Tempur Sealy International, Inc.(1) | 44,863 | 1,211,301 | ||||||
Household Products — 0.4% | ||||||||
Clorox Co. (The) | 10,555 | 2,131,266 | ||||||
Industrial Conglomerates — 0.1% | ||||||||
General Electric Co. | 48,298 | 521,618 |
7
Shares | Value | |||||||
Insurance — 0.2% | ||||||||
Kinsale Capital Group, Inc. | 4,003 | $ | 801,120 | |||||
Interactive Media and Services — 7.7% | ||||||||
Alphabet, Inc., Class A(1) | 10,745 | 18,832,117 | ||||||
Facebook, Inc., Class A(1) | 66,266 | 18,101,220 | ||||||
36,933,337 | ||||||||
Internet and Direct Marketing Retail — 9.2% | ||||||||
Amazon.com, Inc.(1) | 11,847 | 38,584,850 | ||||||
Booking Holdings, Inc.(1) | 2,136 | 4,757,449 | ||||||
Etsy, Inc.(1) | 3,342 | 594,575 | ||||||
43,936,874 | ||||||||
IT Services — 7.0% | ||||||||
Accenture plc, Class A | 6,510 | 1,700,477 | ||||||
GoDaddy, Inc., Class A(1) | 5,933 | 492,142 | ||||||
MasterCard, Inc., Class A | 28,138 | 10,043,578 | ||||||
Okta, Inc.(1) | 3,904 | 992,631 | ||||||
PayPal Holdings, Inc.(1) | 27,914 | 6,537,459 | ||||||
Square, Inc., Class A(1) | 7,647 | 1,664,293 | ||||||
StoneCo Ltd., A Shares(1) | 9,033 | 758,049 | ||||||
Visa, Inc., Class A | 52,176 | 11,412,457 | ||||||
33,601,086 | ||||||||
Life Sciences Tools and Services — 0.9% | ||||||||
Illumina, Inc.(1) | 1,395 | 516,150 | ||||||
Mettler-Toledo International, Inc.(1) | 1,144 | 1,303,794 | ||||||
NeoGenomics, Inc.(1) | 10,860 | 584,702 | ||||||
Repligen Corp.(1) | 10,242 | 1,962,675 | ||||||
4,367,321 | ||||||||
Machinery — 0.8% | ||||||||
Lincoln Electric Holdings, Inc. | 28,608 | 3,325,680 | ||||||
Terex Corp. | 15,128 | 527,816 | ||||||
3,853,496 | ||||||||
Media — 0.5% | ||||||||
Cable One, Inc. | 1,121 | 2,497,274 | ||||||
Metals and Mining — 0.1% | ||||||||
Freeport-McMoRan, Inc. | 20,887 | 543,480 | ||||||
Multiline Retail — 0.3% | ||||||||
Dollar General Corp. | 7,913 | 1,664,104 | ||||||
Personal Products — 0.6% | ||||||||
Estee Lauder Cos., Inc. (The), Class A | 10,526 | 2,801,916 | ||||||
Pharmaceuticals — 1.2% | ||||||||
Bristol-Myers Squibb Co. | 35,313 | 2,190,465 | ||||||
Merck & Co., Inc. | 45,072 | 3,686,890 | ||||||
5,877,355 | ||||||||
Professional Services — 0.1% | ||||||||
CoStar Group, Inc.(1) | 718 | 663,633 | ||||||
Real Estate Management and Development — 0.2% | ||||||||
Redfin Corp.(1) | 11,229 | 770,646 | ||||||
Road and Rail — 0.9% | ||||||||
Landstar System, Inc. | 16,580 | 2,232,663 | ||||||
Old Dominion Freight Line, Inc. | 5,371 | 1,048,312 | ||||||
Uber Technologies, Inc.(1) | 24,286 | 1,238,586 | ||||||
4,519,561 |
8
Shares | Value | |||||||
Semiconductors and Semiconductor Equipment — 10.1% | ||||||||
Advanced Micro Devices, Inc.(1) | 37,003 | $ | 3,393,545 | |||||
Applied Materials, Inc. | 41,771 | 3,604,837 | ||||||
Broadcom, Inc. | 4,363 | 1,910,340 | ||||||
Cohu, Inc. | 13,599 | 519,210 | ||||||
Enphase Energy, Inc.(1) | 4,649 | 815,760 | ||||||
Lam Research Corp. | 2,512 | 1,186,342 | ||||||
Lattice Semiconductor Corp.(1) | 53,891 | 2,469,286 | ||||||
Marvell Technology Group Ltd. | 30,860 | 1,467,084 | ||||||
MaxLinear, Inc.(1) | 37,034 | 1,414,328 | ||||||
Micron Technology, Inc.(1) | 36,827 | 2,768,654 | ||||||
Monolithic Power Systems, Inc. | 5,751 | 2,106,189 | ||||||
NVIDIA Corp. | 18,048 | 9,424,666 | ||||||
QUALCOMM, Inc. | 53,218 | 8,107,230 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 27,171 | 2,962,726 | ||||||
Teradyne, Inc. | 11,397 | 1,366,386 | ||||||
Texas Instruments, Inc. | 25,655 | 4,210,755 | ||||||
Universal Display Corp. | 3,241 | 744,782 | ||||||
48,472,120 | ||||||||
Software — 20.5% | ||||||||
8x8, Inc.(1) | 24,660 | 850,030 | ||||||
Adobe, Inc.(1) | 16,490 | 8,246,979 | ||||||
Atlassian Corp. plc, Class A(1) | 8,664 | 2,026,250 | ||||||
Autodesk, Inc.(1) | 21,147 | 6,457,025 | ||||||
Cadence Design Systems, Inc.(1) | 6,626 | 903,985 | ||||||
Cloudflare, Inc., Class A(1) | 8,145 | 618,939 | ||||||
Coupa Software, Inc.(1) | 1,817 | 615,799 | ||||||
Crowdstrike Holdings, Inc., Class A(1) | 9,998 | 2,117,776 | ||||||
DocuSign, Inc.(1) | 6,685 | 1,486,076 | ||||||
Fair Isaac Corp.(1) | 2,048 | 1,046,610 | ||||||
Fortinet, Inc.(1) | 3,761 | 558,621 | ||||||
Guidewire Software, Inc.(1) | 5,159 | 664,118 | ||||||
Intuit, Inc. | 8,891 | 3,377,246 | ||||||
Microsoft Corp. | 199,618 | 44,399,036 | ||||||
Palo Alto Networks, Inc.(1) | 7,732 | 2,747,875 | ||||||
Proofpoint, Inc.(1) | 11,273 | 1,537,750 | ||||||
PTC, Inc.(1) | 5,520 | 660,247 | ||||||
Rapid7, Inc.(1) | 12,435 | 1,121,140 | ||||||
salesforce.com, Inc.(1) | 5,072 | 1,128,672 | ||||||
ServiceNow, Inc.(1) | 15,701 | 8,642,301 | ||||||
Varonis Systems, Inc.(1) | 9,333 | 1,526,972 | ||||||
Workday, Inc., Class A(1) | 22,678 | 5,433,876 | ||||||
Zendesk, Inc.(1) | 12,791 | 1,830,648 | ||||||
Zscaler, Inc.(1) | 2,803 | 559,787 | ||||||
98,557,758 | ||||||||
Specialty Retail — 2.9% | ||||||||
American Eagle Outfitters, Inc. | 27,545 | 552,828 | ||||||
Home Depot, Inc. (The) | 14,696 | 3,903,551 | ||||||
Lowe's Cos., Inc. | 20,753 | 3,331,064 | ||||||
Ross Stores, Inc. | 20,423 | 2,508,149 | ||||||
TJX Cos., Inc. (The) | 39,511 | 2,698,206 | ||||||
Ulta Beauty, Inc.(1) | 3,425 | 983,523 | ||||||
13,977,321 |
9
Shares | Value | |||||||
Technology Hardware, Storage and Peripherals — 11.8% | ||||||||
Apple, Inc. | 410,088 | $ | 54,414,577 | |||||
Pure Storage, Inc., Class A(1) | 101,591 | 2,296,972 | ||||||
56,711,549 | ||||||||
Textiles, Apparel and Luxury Goods — 2.0% | ||||||||
Deckers Outdoor Corp.(1) | 2,968 | 851,163 | ||||||
lululemon athletica, Inc.(1) | 1,550 | 539,447 | ||||||
NIKE, Inc., Class B | 54,652 | 7,731,618 | ||||||
Steven Madden Ltd. | 15,451 | 545,729 | ||||||
9,667,957 | ||||||||
Trading Companies and Distributors — 0.4% | ||||||||
SiteOne Landscape Supply, Inc.(1) | 10,847 | 1,720,660 | ||||||
TOTAL INVESTMENT SECURITIES — 99.7% (Cost $263,703,860) | 478,847,804 | |||||||
OTHER ASSETS AND LIABILITIES — 0.3% | 1,392,708 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 480,240,512 |
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
ADR | - | American Depositary Receipt |
(1)Non-income producing.
See Notes to Financial Statements.
10
Statement of Assets and Liabilities |
DECEMBER 31, 2020 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $263,703,860) | $ | 478,847,804 | |||
Receivable for investments sold | 1,908,553 | ||||
Receivable for capital shares sold | 1,208,658 | ||||
Dividends and interest receivable | 114,780 | ||||
482,079,795 | |||||
Liabilities | |||||
Disbursements in excess of demand deposit cash | 903,115 | ||||
Payable for capital shares redeemed | 528,931 | ||||
Accrued management fees | 375,808 | ||||
Distribution and service fees payable | 31,429 | ||||
1,839,283 | |||||
Net Assets | $ | 480,240,512 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 264,830,336 | |||
Distributable earnings | 215,410,176 | ||||
$ | 480,240,512 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $268,645,126 | 11,056,409 | $24.30 | ||||||||
I Class, $0.01 Par Value | $136,547,349 | 5,573,099 | $24.50 | ||||||||
Y Class, $0.01 Par Value | $225,819 | 9,202 | $24.54 | ||||||||
A Class, $0.01 Par Value | $39,911,250 | 1,672,955 | $23.86* | ||||||||
C Class, $0.01 Par Value | $21,910,865 | 1,028,293 | $21.31 | ||||||||
R Class, $0.01 Par Value | $11,480,940 | 497,578 | $23.07 | ||||||||
R5 Class, $0.01 Par Value | $1,519,163 | 61,963 | $24.52 |
*Maximum offering price $25.32 (net asset value divided by 0.9425).
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $2,523) | $ | 1,670,322 | |||
Interest | 2,531 | ||||
1,672,853 | |||||
Expenses: | |||||
Management fees | 2,197,392 | ||||
Distribution and service fees: | |||||
A Class | 46,863 | ||||
C Class | 113,377 | ||||
R Class | 26,084 | ||||
Directors' fees and expenses | 16,370 | ||||
Other expenses | 1,576 | ||||
2,401,662 | |||||
Fees waived(1) | (23,297) | ||||
2,378,365 | |||||
Net investment income (loss) | (705,512) | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | 23,029,464 | ||||
Futures contract transactions | 1,046,475 | ||||
24,075,939 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 56,796,127 | ||||
Futures contracts | (36,367) | ||||
56,759,760 | |||||
Net realized and unrealized gain (loss) | 80,835,699 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 80,130,187 |
(1)Amount consists of $12,736, $6,949, $13, $1,875, $1,134, $522 and $68 for Investor Class, I Class, Y Class, A Class, C Class, R Class and R5 Class, respectively.
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED) AND YEAR ENDED JUNE 30, 2020 | ||||||||
Increase (Decrease) in Net Assets | December 31, 2020 | June 30, 2020 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | (705,512) | $ | (458,413) | ||||
Net realized gain (loss) | 24,075,939 | 99,531,126 | ||||||
Change in net unrealized appreciation (depreciation) | 56,759,760 | (12,917,756) | ||||||
Net increase (decrease) in net assets resulting from operations | 80,130,187 | 86,154,957 | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (43,314,900) | (19,742,797) | ||||||
I Class | (23,331,103) | (14,515,555) | ||||||
Y Class | (41,485) | (29,840) | ||||||
A Class | (6,605,636) | (2,597,617) | ||||||
C Class | (3,987,546) | (2,101,210) | ||||||
R Class | (1,907,332) | (775,728) | ||||||
R5 Class | (240,227) | (64,578) | ||||||
Decrease in net assets from distributions | (79,428,229) | (39,827,325) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 37,361,313 | (138,096,911) | ||||||
Net increase (decrease) in net assets | 38,063,271 | (91,769,279) | ||||||
Net Assets | ||||||||
Beginning of period | 442,177,241 | 533,946,520 | ||||||
End of period | $ | 480,240,512 | $ | 442,177,241 |
See Notes to Financial Statements.
13
Notes to Financial Statements |
DECEMBER 31, 2020 (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. Disciplined Growth Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek long-term capital growth.
The fund offers the Investor Class, I Class, Y Class, A Class, C Class, R Class and R5 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.
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 (NAV) 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.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price.
Open-end management investment companies are valued at the reported NAV 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.
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.
14
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV 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. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
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.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
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, if any, are generally declared and paid semiannually. Distributions from net realized gains, if any, are generally declared and paid annually. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
15
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.
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 ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, 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. 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 fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds. During the period ended December 31, 2020, the investment advisor agreed to waive 0.01% of the fund's management fee. The investment advisor expects this waiver to continue until July 31, 2021 and cannot terminate it prior to such date without the approval of the Board of Directors.
The Investment Category Fee range, the Complex Fee range and the effective annual management fee before and after waiver for each class for the period ended December 31, 2020 are as follows:
Investment Category Fee Range | Complex Fee Range | Effective Annual Management Fee | ||||||||||||
Before Waiver | After Waiver | |||||||||||||
Investor Class | 0.6880% to 0.8700% | 0.2500% to 0.3100% | 1.00% | 0.99% | ||||||||||
I Class | 0.0500% to 0.1100% | 0.80% | 0.79% | |||||||||||
Y Class | 0.0000% to 0.0600% | 0.75% | 0.74% | |||||||||||
A Class | 0.2500% to 0.3100% | 1.00% | 0.99% | |||||||||||
C Class | 0.2500% to 0.3100% | 1.00% | 0.99% | |||||||||||
R Class | 0.2500% to 0.3100% | 1.00% | 0.99% | |||||||||||
R5 Class | 0.0500% to 0.1100% | 0.80% | 0.79% |
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 ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. 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 December 31, 2020 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.
16
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $9,204,163 and $9,670,592, respectively. The effect of interfund transactions on the Statement of Operations was $725,924 in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended December 31, 2020 were $422,254,414 and $444,084,522, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended December 31, 2020 | Year ended June 30, 2020 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 400,000,000 | 170,000,000 | ||||||||||||
Sold | 973,485 | $ | 25,569,490 | 1,261,048 | $ | 27,858,757 | ||||||||
Issued in reinvestment of distributions | 1,738,860 | 41,937,569 | 889,315 | 19,280,340 | ||||||||||
Redeemed | (1,430,367) | (37,694,319) | (3,908,883) | (85,287,974) | ||||||||||
1,281,978 | 29,812,740 | (1,758,520) | (38,148,877) | |||||||||||
I Class/Shares Authorized | 100,000,000 | 100,000,000 | ||||||||||||
Sold | 551,646 | 14,673,087 | 947,512 | 20,998,104 | ||||||||||
Issued in reinvestment of distributions | 955,719 | 23,243,092 | 664,465 | 14,478,684 | ||||||||||
Redeemed | (1,491,067) | (38,612,272) | (5,846,700) | (126,745,336) | ||||||||||
16,298 | (696,093) | (4,234,723) | (91,268,548) | |||||||||||
Y Class/Shares Authorized | 40,000,000 | 50,000,000 | ||||||||||||
Sold | — | — | 547 | 12,143 | ||||||||||
Issued in reinvestment of distributions | 1,704 | 41,485 | 1,368 | 29,840 | ||||||||||
Redeemed | (1,933) | (48,764) | (18,978) | (429,123) | ||||||||||
(229) | (7,279) | (17,063) | (387,140) | |||||||||||
A Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||||||
Sold | 224,171 | 5,843,072 | 238,636 | 5,163,120 | ||||||||||
Issued in reinvestment of distributions | 260,803 | 6,175,823 | 111,662 | 2,390,694 | ||||||||||
Redeemed | (231,496) | (5,998,012) | (400,827) | (8,643,889) | ||||||||||
253,478 | 6,020,883 | (50,529) | (1,090,075) | |||||||||||
C Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 27,438 | 642,493 | 53,988 | 1,039,561 | ||||||||||
Issued in reinvestment of distributions | 187,436 | 3,964,277 | 102,058 | 2,005,435 | ||||||||||
Redeemed | (202,962) | (4,822,496) | (445,546) | (8,913,381) | ||||||||||
11,912 | (215,726) | (289,500) | (5,868,385) | |||||||||||
R Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 63,052 | 1,603,418 | 82,972 | 1,773,737 | ||||||||||
Issued in reinvestment of distributions | 82,772 | 1,895,474 | 37,170 | 775,728 | ||||||||||
Redeemed | (55,922) | (1,424,413) | (184,733) | (3,945,878) | ||||||||||
89,902 | 2,074,479 | (64,591) | (1,396,413) | |||||||||||
R5 Class/Shares Authorized | 40,000,000 | 50,000,000 | ||||||||||||
Sold | 10,290 | 271,040 | 20,945 | 454,916 | ||||||||||
Issued in reinvestment of distributions | 9,874 | 240,227 | 2,962 | 64,578 | ||||||||||
Redeemed | (5,152) | (138,958) | (20,777) | (456,967) | ||||||||||
15,012 | 372,309 | 3,130 | 62,527 | |||||||||||
Net increase (decrease) | 1,668,351 | $ | 37,361,313 | (6,411,796) | $ | (138,096,911) |
17
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.
As of period end, the fund’s investment securities were classified as Level 1. The Schedule of Investments provides additional information on the fund's portfolio holdings.
7. Derivative Instruments
Equity Price Risk — The fund is subject to equity price risk in the normal course of pursuing its investment objectives. A fund may enter into futures contracts based on an equity index in order to manage its exposure to changes in market conditions. 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 is required to deposit either cash or securities in an amount equal to a certain percentage of the contract value (initial margin). 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 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. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. The fund's average notional exposure to equity price risk derivative instruments held during the period was $6,081,463 futures contracts purchased.
At period end, the fund did not have any derivative instruments disclosed on the Statement of Assets and Liabilities. For the six months ended December 31, 2020, the effect of equity price risk derivative instruments on the Statement of Operations was $1,046,475 in net realized gain (loss) on futures contract transactions and $(36,367) in change in net unrealized appreciation (depreciation) on futures contracts.
8. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
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.
18
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 | $ | 266,551,857 | |||
Gross tax appreciation of investments | $ | 213,695,862 | |||
Gross tax depreciation of investments | (1,399,915) | ||||
Net tax appreciation (depreciation) of investments | $ | 212,295,947 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
19
Financial Highlights |
For a Share Outstanding Throughout the Years Ended June 30 (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 | |||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $24.39 | (0.04) | 4.61 | 4.57 | — | (4.66) | (4.66) | $24.30 | 18.88% | 1.00%(4) | 1.01%(4) | (0.28)%(4) | (0.29)%(4) | 93% | $268,645 | ||||||||||||||||||||||||||||||||
2020 | $21.76 | (0.02) | 4.59 | 4.57 | — | (1.94) | (1.94) | $24.39 | 22.13% | 1.01% | 1.02% | (0.10)% | (0.11)% | 142% | $238,408 | ||||||||||||||||||||||||||||||||
2019 | $24.05 | 0.05 | 1.08 | 1.13 | (0.04) | (3.38) | (3.42) | $21.76 | 6.61% | 1.02% | 1.02% | 0.24% | 0.24% | 105% | $250,920 | ||||||||||||||||||||||||||||||||
2018 | $22.10 | 0.05 | 3.97 | 4.02 | (0.03) | (2.04) | (2.07) | $24.05 | 18.80% | 1.02% | 1.02% | 0.21% | 0.21% | 97% | $362,865 | ||||||||||||||||||||||||||||||||
2017 | $18.36 | 0.11 | 3.74 | 3.85 | (0.11) | — | (0.11) | $22.10 | 20.88% | 1.02% | 1.02% | 0.51% | 0.51% | 124% | $434,242 | ||||||||||||||||||||||||||||||||
2016 | $19.15 | 0.12 | (0.53) | (0.41) | (0.12) | (0.26) | (0.38) | $18.36 | (2.08)% | 1.03% | 1.03% | 0.64% | 0.64% | 113% | $370,901 | ||||||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $24.54 | (0.01) | 4.63 | 4.62 | — | (4.66) | (4.66) | $24.50 | 18.97% | 0.80%(4) | 0.81%(4) | (0.08)%(4) | (0.09)%(4) | 93% | $136,547 | ||||||||||||||||||||||||||||||||
2020 | $21.84 | 0.02 | 4.62 | 4.64 | — | (1.94) | (1.94) | $24.54 | 22.38% | 0.81% | 0.82% | 0.10% | 0.09% | 142% | $136,351 | ||||||||||||||||||||||||||||||||
2019 | $24.13 | 0.10 | 1.08 | 1.18 | (0.09) | (3.38) | (3.47) | $21.84 | 6.82% | 0.82% | 0.82% | 0.44% | 0.44% | 105% | $213,805 | ||||||||||||||||||||||||||||||||
2018 | $22.16 | 0.10 | 3.99 | 4.09 | (0.08) | (2.04) | (2.12) | $24.13 | 19.01% | 0.82% | 0.82% | 0.41% | 0.41% | 97% | $231,261 | ||||||||||||||||||||||||||||||||
2017 | $18.41 | 0.15 | 3.75 | 3.90 | (0.15) | — | (0.15) | $22.16 | 21.18% | 0.82% | 0.82% | 0.71% | 0.71% | 124% | $238,480 | ||||||||||||||||||||||||||||||||
2016 | $19.20 | 0.16 | (0.53) | (0.37) | (0.16) | (0.26) | (0.42) | $18.41 | (1.95)% | 0.83% | 0.83% | 0.84% | 0.84% | 113% | $318,576 |
For a Share Outstanding Throughout the Years Ended June 30 (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) | |||||||||||||||||||||||||||||||||
Y Class | |||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $24.56 | —(5) | 4.64 | 4.64 | — | (4.66) | (4.66) | $24.54 | 19.04% | 0.75%(4) | 0.76%(4) | (0.03)%(4) | (0.04)%(4) | 93% | $226 | ||||||||||||||||||||||||||||||||
2020 | $21.85 | 0.04 | 4.61 | 4.65 | — | (1.94) | (1.94) | $24.56 | 22.42% | 0.76% | 0.77% | 0.15% | 0.14% | 142% | $232 | ||||||||||||||||||||||||||||||||
2019 | $24.14 | 0.12 | 1.07 | 1.19 | (0.10) | (3.38) | (3.48) | $21.85 | 6.87% | 0.77% | 0.77% | 0.49% | 0.49% | 105% | $579 | ||||||||||||||||||||||||||||||||
2018 | $22.17 | 0.11 | 3.99 | 4.10 | (0.09) | (2.04) | (2.13) | $24.14 | 19.06% | 0.77% | 0.77% | 0.46% | 0.46% | 97% | $6 | ||||||||||||||||||||||||||||||||
2017(6) | $21.62 | 0.04 | 0.63 | 0.67 | (0.12) | — | (0.12) | $22.17 | 3.07% | 0.77%(4) | 0.77%(4) | 0.74%(4) | 0.74%(4) | 124%(7) | $5 | ||||||||||||||||||||||||||||||||
A Class | |||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $24.05 | (0.07) | 4.54 | 4.47 | — | (4.66) | (4.66) | $23.86 | 18.74% | 1.25%(4) | 1.26%(4) | (0.53)%(4) | (0.54)%(4) | 93% | $39,911 | ||||||||||||||||||||||||||||||||
2020 | $21.53 | (0.08) | 4.54 | 4.46 | — | (1.94) | (1.94) | $24.05 | 21.84% | 1.26% | 1.27% | (0.35)% | (0.36)% | 142% | $34,139 | ||||||||||||||||||||||||||||||||
2019 | $23.87 | —(5) | 1.06 | 1.06 | (0.02) | (3.38) | (3.40) | $21.53 | 6.32% | 1.27% | 1.27% | (0.01)% | (0.01)% | 105% | $31,650 | ||||||||||||||||||||||||||||||||
2018 | $21.97 | (0.01) | 3.95 | 3.94 | — | (2.04) | (2.04) | $23.87 | 18.48% | 1.27% | 1.27% | (0.04)% | (0.04)% | 97% | $37,832 | ||||||||||||||||||||||||||||||||
2017 | $18.28 | 0.05 | 3.72 | 3.77 | (0.08) | — | (0.08) | $21.97 | 20.61% | 1.27% | 1.27% | 0.26% | 0.26% | 124% | $58,469 | ||||||||||||||||||||||||||||||||
2016 | $19.09 | 0.07 | (0.52) | (0.45) | (0.10) | (0.26) | (0.36) | $18.28 | (2.35)% | 1.28% | 1.28% | 0.39% | 0.39% | 113% | $133,042 | ||||||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $21.99 | (0.15) | 4.13 | 3.98 | — | (4.66) | (4.66) | $21.31 | 18.26% | 2.00%(4) | 2.01%(4) | (1.28)%(4) | (1.29)%(4) | 93% | $21,911 | ||||||||||||||||||||||||||||||||
2020 | $19.98 | (0.22) | 4.17 | 3.95 | — | (1.94) | (1.94) | $21.99 | 20.94% | 2.01% | 2.02% | (1.10)% | (1.11)% | 142% | $22,346 | ||||||||||||||||||||||||||||||||
2019 | $22.55 | (0.16) | 0.97 | 0.81 | — | (3.38) | (3.38) | $19.98 | 5.57% | 2.02% | 2.02% | (0.76)% | (0.76)% | 105% | $26,088 | ||||||||||||||||||||||||||||||||
2018 | $21.00 | (0.17) | 3.76 | 3.59 | — | (2.04) | (2.04) | $22.55 | 17.57% | 2.02% | 2.02% | (0.79)% | (0.79)% | 97% | $40,253 | ||||||||||||||||||||||||||||||||
2017 | $17.54 | (0.09) | 3.55 | 3.46 | — | — | — | $21.00 | 19.73% | 2.02% | 2.02% | (0.49)% | (0.49)% | 124% | $44,456 | ||||||||||||||||||||||||||||||||
2016 | $18.41 | (0.06) | (0.51) | (0.57) | (0.04) | (0.26) | (0.30) | $17.54 | (3.11)% | 2.03% | 2.03% | (0.36)% | (0.36)% | 113% | $45,050 |
For a Share Outstanding Throughout the Years Ended June 30 (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) | |||||||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $23.42 | (0.10) | 4.41 | 4.31 | — | (4.66) | (4.66) | $23.07 | 18.55% | 1.50%(4) | 1.51%(4) | (0.78)%(4) | (0.79)%(4) | 93% | $11,481 | ||||||||||||||||||||||||||||||||
2020 | $21.06 | (0.13) | 4.43 | 4.30 | — | (1.94) | (1.94) | $23.42 | 21.56% | 1.51% | 1.52% | (0.60)% | (0.61)% | 142% | $9,548 | ||||||||||||||||||||||||||||||||
2019 | $23.47 | (0.06) | 1.03 | 0.97 | — | (3.38) | (3.38) | $21.06 | 6.03% | 1.52% | 1.52% | (0.26)% | (0.26)% | 105% | $9,948 | ||||||||||||||||||||||||||||||||
2018 | $21.68 | (0.06) | 3.89 | 3.83 | — | (2.04) | (2.04) | $23.47 | 18.20% | 1.52% | 1.52% | (0.29)% | (0.29)% | 97% | $10,626 | ||||||||||||||||||||||||||||||||
2017 | $18.06 | —(5) | 3.67 | 3.67 | (0.05) | — | (0.05) | $21.68 | 20.33% | 1.52% | 1.52% | 0.01% | 0.01% | 124% | $11,184 | ||||||||||||||||||||||||||||||||
2016 | $18.89 | 0.03 | (0.52) | (0.49) | (0.08) | (0.26) | (0.34) | $18.06 | (2.60)% | 1.53% | 1.53% | 0.14% | 0.14% | 113% | $12,778 | ||||||||||||||||||||||||||||||||
R5 Class | |||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $24.55 | (0.01) | 4.64 | 4.63 | — | (4.66) | (4.66) | $24.52 | 19.01% | 0.80%(4) | 0.81%(4) | (0.08)%(4) | (0.09)%(4) | 93% | $1,519 | ||||||||||||||||||||||||||||||||
2020 | $21.85 | 0.02 | 4.62 | 4.64 | — | (1.94) | (1.94) | $24.55 | 22.37% | 0.81% | 0.82% | 0.10% | 0.09% | 142% | $1,153 | ||||||||||||||||||||||||||||||||
2019 | $24.14 | 0.10 | 1.08 | 1.18 | (0.09) | (3.38) | (3.47) | $21.85 | 6.82% | 0.82% | 0.82% | 0.44% | 0.44% | 105% | $957 | ||||||||||||||||||||||||||||||||
2018 | $22.17 | 0.10 | 3.99 | 4.09 | (0.08) | (2.04) | (2.12) | $24.14 | 19.00% | 0.82% | 0.82% | 0.41% | 0.41% | 97% | $1,142 | ||||||||||||||||||||||||||||||||
2017(6) | $21.62 | 0.03 | 0.63 | 0.66 | (0.11) | — | (0.11) | $22.17 | 3.06% | 0.82%(4) | 0.82%(4) | 0.69%(4) | 0.69%(4) | 124%(7) | $5 |
Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(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.
(3)Six months ended December 31, 2020 (unaudited).
(4)Annualized.
(5)Per-share amount was less than $0.005.
(6)April 10, 2017 (commencement of sale) through June 30, 2017.
(7)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended June 30, 2017.
See Notes to Financial Statements.
Additional Information |
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 American Century Investments’ website at americancentury.com/proxy. 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 americancentury.com/proxy. 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 as an exhibit to its reports on Form N-PORT. The fund’s 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.
24
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 | |||||||
American Century Quantitative Equity Funds, 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. | ||||||||
©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-91454 2102 |
Semiannual Report | |||||
December 31, 2020 | |||||
Equity Growth Fund | |||||
Investor Class (BEQGX) | |||||
I Class (AMEIX) | |||||
A Class (BEQAX) | |||||
C Class (AEYCX) | |||||
R Class (AEYRX) | |||||
R5 Class (AEYGX) |
Table of Contents |
President's Letter | |||||
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Additional Information |
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.
President’s Letter |
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended December 31, 2020. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Stocks Soared as Backdrop Improved
The reporting period began amid an extraordinary recovery from massive market and economic disruptions triggered by the COVID-19 pandemic. Thanks to swift and aggressive action from central banks and federal governments, stocks and other riskier assets rebounded quickly as investors regained confidence in the global financial markets. In addition, the gradual reopening of economies along with COVID-19 treatment and vaccine progress also helped fuel the market's summer recovery.
Challenges related to the virus’s spread and the upcoming U.S. elections emerged in the fall. However, the November 3 election results removed some of the prevailing political uncertainty. Additionally, U.S. and European regulatory agencies approved the emergency use of two COVID-19 vaccines, and the U.S. Congress passed a second coronavirus fiscal aid package. These events, along with the U.K.’s orderly exit from the European Union, prompted a strong rally among global stocks. Investors looked ahead optimistically, even as a surge in COVID-19 infection rates triggered new lockdown measures.
Overall, global stocks delivered robust six-month returns. Non-U.S. stocks generally outpaced U.S. stocks, and within the U.S. market, small-cap stocks (Russell 2000 Index) were top performers, gaining nearly 38%. Growth stocks modestly outperformed value stocks across the board.
A Return to Normalcy
The return to pre-pandemic life appears to be on the horizon now that the first COVID-19 vaccines are available. In addition, medical professionals continue to improve treatment protocols for those afflicted with the virus. However, until the vaccine is widely distributed, investors may face periods of outbreak-related disruptions, economic uncertainty and heightened market volatility. These influences can be unsettling, but they tend to be temporary.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
DECEMBER 31, 2020 | |||||
Top Ten Holdings | % of net assets | ||||
Apple, Inc. | 6.5% | ||||
Microsoft Corp. | 4.2% | ||||
Amazon.com, Inc. | 3.9% | ||||
Alphabet, Inc., Class A | 1.9% | ||||
Bristol-Myers Squibb Co. | 1.4% | ||||
Facebook, Inc., Class A | 1.4% | ||||
Johnson & Johnson | 1.3% | ||||
Adobe, Inc. | 1.3% | ||||
Berkshire Hathaway, Inc., Class B | 1.3% | ||||
QUALCOMM, Inc. | 1.2% | ||||
Top Five Industries | % of net assets | ||||
Software | 11.6% | ||||
Technology Hardware, Storage and Peripherals | 7.4% | ||||
Semiconductors and Semiconductor Equipment | 7.0% | ||||
Internet and Direct Marketing Retail | 4.7% | ||||
Health Care Providers and Services | 4.2% | ||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 99.6% | ||||
Temporary Cash Investments | 0.4% | ||||
Other Assets and Liabilities | —* |
*Category is less than 0.05% of total net assets.
3
Shareholder Fee Example |
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 July 1, 2020 to December 31, 2020.
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 through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual 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 $25.00 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.
4
Beginning Account Value 7/1/20 | Ending Account Value 12/31/20 | Expenses Paid During Period(1) 7/1/20 - 12/31/20 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,173.70 | $3.62 | 0.66% | ||||||||||
I Class | $1,000 | $1,174.80 | $2.52 | 0.46% | ||||||||||
A Class | $1,000 | $1,172.40 | $4.98 | 0.91% | ||||||||||
C Class | $1,000 | $1,167.50 | $9.07 | 1.66% | ||||||||||
R Class | $1,000 | $1,170.70 | $6.35 | 1.16% | ||||||||||
R5 Class | $1,000 | $1,175.10 | $2.52 | 0.46% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,021.88 | $3.36 | 0.66% | ||||||||||
I Class | $1,000 | $1,022.89 | $2.35 | 0.46% | ||||||||||
A Class | $1,000 | $1,020.62 | $4.63 | 0.91% | ||||||||||
C Class | $1,000 | $1,016.84 | $8.44 | 1.66% | ||||||||||
R Class | $1,000 | $1,019.36 | $5.90 | 1.16% | ||||||||||
R5 Class | $1,000 | $1,022.89 | $2.35 | 0.46% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
5
Schedule of Investments |
DECEMBER 31, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.6% | ||||||||
Aerospace and Defense — 0.4% | ||||||||
Raytheon Technologies Corp. | 60,890 | $ | 4,354,244 | |||||
Textron, Inc. | 121,664 | 5,880,021 | ||||||
10,234,265 | ||||||||
Auto Components — 1.2% | ||||||||
Adient plc(1) | 195,704 | 6,804,628 | ||||||
BorgWarner, Inc. | 160,472 | 6,200,638 | ||||||
Lear Corp. | 62,314 | 9,909,796 | ||||||
Magna International, Inc. | 92,720 | 6,564,576 | ||||||
29,479,638 | ||||||||
Automobiles — 0.5% | ||||||||
General Motors Co. | 53,139 | 2,212,708 | ||||||
Tesla, Inc.(1) | 12,280 | 8,665,628 | ||||||
10,878,336 | ||||||||
Banks — 4.0% | ||||||||
Bank of America Corp. | 722,956 | 21,912,796 | ||||||
Citigroup, Inc. | 288,312 | 17,777,318 | ||||||
Citizens Financial Group, Inc. | 135,283 | 4,837,720 | ||||||
Comerica, Inc. | 103,311 | 5,770,953 | ||||||
East West Bancorp, Inc. | 116,929 | 5,929,470 | ||||||
Fifth Third Bancorp | 393,965 | 10,861,615 | ||||||
JPMorgan Chase & Co. | 87,168 | 11,076,438 | ||||||
KeyCorp | 483,696 | 7,937,451 | ||||||
People's United Financial, Inc. | 409,697 | 5,297,382 | ||||||
Regions Financial Corp. | 286,027 | 4,610,755 | ||||||
96,011,898 | ||||||||
Beverages — 0.2% | ||||||||
PepsiCo, Inc. | 26,027 | 3,859,804 | ||||||
Biotechnology — 1.4% | ||||||||
AbbVie, Inc. | 172,147 | 18,445,551 | ||||||
Alexion Pharmaceuticals, Inc.(1) | 37,663 | 5,884,467 | ||||||
Amgen, Inc. | 15,623 | 3,592,040 | ||||||
Vertex Pharmaceuticals, Inc.(1) | 22,083 | 5,219,097 | ||||||
33,141,155 | ||||||||
Building Products — 1.4% | ||||||||
Masco Corp. | 482,971 | 26,529,597 | ||||||
Owens Corning | 81,359 | 6,163,758 | ||||||
32,693,355 | ||||||||
Capital Markets — 2.5% | ||||||||
Brookfield Asset Management, Inc., Class A | 236,238 | 9,749,542 | ||||||
Moody's Corp. | 32,830 | 9,528,579 | ||||||
Morgan Stanley | 248,227 | 17,010,997 | ||||||
MSCI, Inc. | 12,485 | 5,574,927 | ||||||
State Street Corp. | 238,326 | 17,345,366 | ||||||
59,209,411 | ||||||||
Chemicals — 3.0% | ||||||||
Air Products and Chemicals, Inc. | 7,910 | 2,161,170 |
6
Shares | Value | |||||||
Dow, Inc. | 77,622 | $ | 4,308,021 | |||||
Eastman Chemical Co. | 47,370 | 4,750,264 | ||||||
Ecolab, Inc. | 81,472 | 17,627,282 | ||||||
Huntsman Corp. | 378,978 | 9,527,507 | ||||||
Linde plc | 26,956 | 7,103,175 | ||||||
Mosaic Co. (The) | 441,125 | 10,150,286 | ||||||
Sherwin-Williams Co. (The) | 21,045 | 15,466,181 | ||||||
71,093,886 | ||||||||
Commercial Services and Supplies — 0.5% | ||||||||
Waste Management, Inc. | 99,698 | 11,757,385 | ||||||
Communications Equipment — 1.4% | ||||||||
Arista Networks, Inc.(1) | 21,679 | 6,299,267 | ||||||
Cisco Systems, Inc. | 315,196 | 14,105,021 | ||||||
Lumentum Holdings, Inc.(1) | 51,396 | 4,872,341 | ||||||
Motorola Solutions, Inc. | 41,045 | 6,980,112 | ||||||
32,256,741 | ||||||||
Construction and Engineering — 0.4% | ||||||||
Quanta Services, Inc. | 123,191 | 8,872,216 | ||||||
Consumer Finance — 0.4% | ||||||||
Synchrony Financial | 296,279 | 10,283,844 | ||||||
Containers and Packaging — 0.6% | ||||||||
International Paper Co. | 210,154 | 10,448,857 | ||||||
Packaging Corp. of America | 35,606 | 4,910,423 | ||||||
15,359,280 | ||||||||
Distributors — 0.2% | ||||||||
LKQ Corp.(1) | 152,444 | 5,372,127 | ||||||
Diversified Financial Services — 1.3% | ||||||||
Berkshire Hathaway, Inc., Class B(1) | 129,250 | 29,969,197 | ||||||
Diversified Telecommunication Services — 2.3% | ||||||||
AT&T, Inc. | 882,510 | 25,380,988 | ||||||
Verizon Communications, Inc. | 496,116 | 29,146,815 | ||||||
54,527,803 | ||||||||
Electric Utilities — 0.9% | ||||||||
NextEra Energy, Inc. | 55,931 | 4,315,077 | ||||||
NRG Energy, Inc. | 217,107 | 8,152,368 | ||||||
PPL Corp. | 360,251 | 10,159,078 | ||||||
22,626,523 | ||||||||
Electrical Equipment — 1.6% | ||||||||
Emerson Electric Co. | 327,809 | 26,346,009 | ||||||
Hubbell, Inc. | 81,243 | 12,738,090 | ||||||
39,084,099 | ||||||||
Electronic Equipment, Instruments and Components — 1.0% | ||||||||
Jabil, Inc. | 202,420 | 8,608,922 | ||||||
SYNNEX Corp. | 84,650 | 6,893,896 | ||||||
Zebra Technologies Corp., Class A(1) | 22,066 | 8,480,626 | ||||||
23,983,444 | ||||||||
Entertainment — 1.7% | ||||||||
Activision Blizzard, Inc. | 60,341 | 5,602,662 | ||||||
Electronic Arts, Inc. | 60,937 | 8,750,553 | ||||||
Madison Square Garden Sports Corp., Class A(1) | 55,463 | 10,210,739 | ||||||
Netflix, Inc.(1) | 9,507 | 5,140,720 | ||||||
Walt Disney Co. (The)(1) | 64,223 | 11,635,923 | ||||||
41,340,597 |
7
Shares | Value | |||||||
Equity Real Estate Investment Trusts (REITs) — 1.1% | ||||||||
Iron Mountain, Inc. | 171,493 | $ | 5,055,614 | |||||
Lamar Advertising Co., Class A | 47,637 | 3,964,351 | ||||||
Spirit Realty Capital, Inc. | 248,424 | 9,979,192 | ||||||
Weyerhaeuser Co. | 214,303 | 7,185,579 | ||||||
26,184,736 | ||||||||
Food and Staples Retailing — 0.3% | ||||||||
Kroger Co. (The) | 229,122 | 7,276,915 | ||||||
Food Products — 0.7% | ||||||||
Campbell Soup Co. | 80,189 | 3,877,138 | ||||||
Hormel Foods Corp. | 170,028 | 7,925,005 | ||||||
J.M. Smucker Co. (The) | 35,020 | 4,048,312 | ||||||
15,850,455 | ||||||||
Gas Utilities — 0.4% | ||||||||
UGI Corp. | 265,025 | 9,265,274 | ||||||
Health Care Equipment and Supplies — 2.3% | ||||||||
Danaher Corp. | 106,604 | 23,681,012 | ||||||
DexCom, Inc.(1) | 6,136 | 2,268,602 | ||||||
Medtronic plc | 176,657 | 20,693,601 | ||||||
Zimmer Biomet Holdings, Inc. | 60,810 | 9,370,213 | ||||||
56,013,428 | ||||||||
Health Care Providers and Services — 4.2% | ||||||||
AmerisourceBergen Corp. | 73,213 | 7,157,303 | ||||||
Anthem, Inc. | 41,279 | 13,254,274 | ||||||
Cardinal Health, Inc. | 66,614 | 3,567,846 | ||||||
CVS Health Corp. | 194,641 | 13,293,980 | ||||||
HCA Healthcare, Inc. | 26,432 | 4,347,007 | ||||||
Henry Schein, Inc.(1) | 180,722 | 12,083,073 | ||||||
Humana, Inc. | 45,361 | 18,610,257 | ||||||
McKesson Corp. | 61,490 | 10,694,341 | ||||||
UnitedHealth Group, Inc. | 49,950 | 17,516,466 | ||||||
100,524,547 | ||||||||
Hotels, Restaurants and Leisure — 3.5% | ||||||||
Aramark | 259,594 | 9,989,177 | ||||||
Boyd Gaming Corp.(1) | 232,894 | 9,995,810 | ||||||
Churchill Downs, Inc. | 50,648 | 9,865,724 | ||||||
Darden Restaurants, Inc. | 88,422 | 10,532,829 | ||||||
Texas Roadhouse, Inc. | 127,320 | 9,951,331 | ||||||
Vail Resorts, Inc. | 34,255 | 9,555,775 | ||||||
Yum! Brands, Inc. | 210,669 | 22,870,227 | ||||||
82,760,873 | ||||||||
Household Durables — 0.3% | ||||||||
Mohawk Industries, Inc.(1) | 45,378 | 6,396,029 | ||||||
Household Products — 1.5% | ||||||||
Clorox Co. (The) | 40,872 | 8,252,874 | ||||||
Colgate-Palmolive Co. | 329,966 | 28,215,393 | ||||||
36,468,267 | ||||||||
Industrial Conglomerates — 1.7% | ||||||||
3M Co. | 115,948 | 20,266,551 | ||||||
Honeywell International, Inc. | 100,230 | 21,318,921 | ||||||
41,585,472 | ||||||||
Insurance — 1.2% | ||||||||
Athene Holding Ltd., Class A(1) | 99,304 | 4,283,974 |
8
Shares | Value | |||||||
Fidelity National Financial, Inc. | 96,912 | $ | 3,788,290 | |||||
Marsh & McLennan Cos., Inc. | 89,417 | 10,461,789 | ||||||
Prudential Financial, Inc. | 132,467 | 10,341,699 | ||||||
28,875,752 | ||||||||
Interactive Media and Services — 3.3% | ||||||||
Alphabet, Inc., Class A(1) | 26,421 | 46,306,501 | ||||||
Facebook, Inc., Class A(1) | 118,793 | 32,449,496 | ||||||
78,755,997 | ||||||||
Internet and Direct Marketing Retail — 4.7% | ||||||||
Amazon.com, Inc.(1) | 28,214 | 91,891,023 | ||||||
Booking Holdings, Inc.(1) | 4,731 | 10,537,214 | ||||||
eBay, Inc. | 173,551 | 8,720,938 | ||||||
111,149,175 | ||||||||
IT Services — 2.3% | ||||||||
Cognizant Technology Solutions Corp., Class A | 81,065 | 6,643,277 | ||||||
International Business Machines Corp. | 140,979 | 17,746,437 | ||||||
Mastercard, Inc., Class A | 23,912 | 8,535,149 | ||||||
PayPal Holdings, Inc.(1) | 17,195 | 4,027,069 | ||||||
Visa, Inc., Class A | 62,340 | 13,635,628 | ||||||
WEX, Inc.(1) | 20,111 | 4,093,192 | ||||||
54,680,752 | ||||||||
Life Sciences Tools and Services — 1.1% | ||||||||
Agilent Technologies, Inc. | 186,516 | 22,100,281 | ||||||
Illumina, Inc.(1) | 10,068 | 3,725,160 | ||||||
25,825,441 | ||||||||
Machinery — 1.1% | ||||||||
Cummins, Inc. | 23,430 | 5,320,953 | ||||||
Snap-on, Inc. | 96,773 | 16,561,731 | ||||||
Westinghouse Air Brake Technologies Corp. | 50,469 | 3,694,331 | ||||||
25,577,015 | ||||||||
Media — 1.3% | ||||||||
Comcast Corp., Class A | 241,388 | 12,648,731 | ||||||
Fox Corp., Class A | 209,991 | 6,114,938 | ||||||
Interpublic Group of Cos., Inc. (The) | 149,236 | 3,510,031 | ||||||
Liberty Broadband Corp., Class C(1) | 60,742 | 9,619,710 | ||||||
31,893,410 | ||||||||
Metals and Mining — 1.4% | ||||||||
Cleveland-Cliffs, Inc. | 757,083 | 11,023,128 | ||||||
Freeport-McMoRan, Inc. | 403,448 | 10,497,717 | ||||||
Reliance Steel & Aluminum Co. | 40,876 | 4,894,901 | ||||||
Steel Dynamics, Inc. | 173,626 | 6,401,591 | ||||||
32,817,337 | ||||||||
Multi-Utilities — 0.9% | ||||||||
CenterPoint Energy, Inc. | 433,381 | 9,378,365 | ||||||
Dominion Energy, Inc. | 176,550 | 13,276,560 | ||||||
22,654,925 | ||||||||
Multiline Retail — 0.9% | ||||||||
Dollar Tree, Inc.(1) | 27,993 | 3,024,364 | ||||||
Target Corp. | 97,898 | 17,281,934 | ||||||
20,306,298 | ||||||||
Oil, Gas and Consumable Fuels — 2.3% | ||||||||
Chevron Corp. | 107,219 | 9,054,645 |
9
Shares | Value | |||||||
Exxon Mobil Corp. | 311,432 | $ | 12,837,227 | |||||
New Fortress Energy, Inc. | 150,515 | 8,066,099 | ||||||
Phillips 66 | 146,496 | 10,245,930 | ||||||
Williams Cos., Inc. (The) | 755,024 | 15,138,231 | ||||||
55,342,132 | ||||||||
Personal Products — 0.2% | ||||||||
Herbalife Nutrition Ltd.(1) | 101,161 | 4,860,786 | ||||||
Pharmaceuticals — 3.9% | ||||||||
Bristol-Myers Squibb Co. | 533,711 | 33,106,093 | ||||||
Johnson & Johnson | 197,288 | 31,049,186 | ||||||
Merck & Co., Inc. | 276,366 | 22,606,739 | ||||||
Pfizer, Inc. | 153,968 | 5,667,562 | ||||||
92,429,580 | ||||||||
Road and Rail — 1.0% | ||||||||
CSX Corp. | 42,381 | 3,846,076 | ||||||
J.B. Hunt Transport Services, Inc. | 41,964 | 5,734,380 | ||||||
Kansas City Southern | 72,207 | 14,739,615 | ||||||
24,320,071 | ||||||||
Semiconductors and Semiconductor Equipment — 7.0% | ||||||||
Applied Materials, Inc. | 297,554 | 25,678,910 | ||||||
Broadcom, Inc. | 60,208 | 26,362,073 | ||||||
Intel Corp. | 84,438 | 4,206,701 | ||||||
KLA Corp. | 50,824 | 13,158,842 | ||||||
Lam Research Corp. | 36,256 | 17,122,621 | ||||||
Micron Technology, Inc.(1) | 134,887 | 10,140,805 | ||||||
NVIDIA Corp. | 17,529 | 9,153,644 | ||||||
NXP Semiconductors NV | 46,719 | 7,428,788 | ||||||
Qorvo, Inc.(1) | 28,145 | 4,679,669 | ||||||
QUALCOMM, Inc. | 191,961 | 29,243,339 | ||||||
Texas Instruments, Inc. | 121,918 | 20,010,401 | ||||||
167,185,793 | ||||||||
Software — 11.6% | ||||||||
Adobe, Inc.(1) | 61,621 | 30,817,894 | ||||||
Autodesk, Inc.(1) | 49,869 | 15,227,000 | ||||||
Cadence Design Systems, Inc.(1) | 40,062 | 5,465,659 | ||||||
Citrix Systems, Inc. | 52,945 | 6,888,144 | ||||||
Cloudflare, Inc., Class A(1) | 118,161 | 8,979,054 | ||||||
Fortinet, Inc.(1) | 29,313 | 4,353,860 | ||||||
Intuit, Inc. | 30,236 | 11,485,145 | ||||||
Microsoft Corp. | 454,491 | 101,087,888 | ||||||
NortonLifeLock, Inc. | 361,211 | 7,505,965 | ||||||
Oracle Corp. (New York) | 282,975 | 18,305,653 | ||||||
Palo Alto Networks, Inc.(1) | 15,817 | 5,621,204 | ||||||
Pegasystems, Inc. | 78,765 | 10,496,224 | ||||||
PTC, Inc.(1) | 65,711 | 7,859,693 | ||||||
salesforce.com, Inc.(1) | 80,236 | 17,854,917 | ||||||
ServiceNow, Inc.(1) | 30,029 | 16,528,862 | ||||||
Varonis Systems, Inc.(1) | 54,719 | 8,952,576 | ||||||
277,429,738 | ||||||||
Specialty Retail — 3.8% | ||||||||
AutoZone, Inc.(1) | 5,863 | 6,950,235 | ||||||
Best Buy Co., Inc. | 36,894 | 3,681,652 |
10
Shares | Value | |||||||
Burlington Stores, Inc.(1) | 42,309 | $ | 11,065,919 | |||||
Dick's Sporting Goods, Inc. | 111,696 | 6,278,432 | ||||||
Home Depot, Inc. (The) | 86,466 | 22,967,099 | ||||||
Lowe's Cos., Inc. | 102,022 | 16,375,551 | ||||||
O'Reilly Automotive, Inc.(1) | 19,842 | 8,979,894 | ||||||
Tractor Supply Co. | 58,830 | 8,270,321 | ||||||
Ulta Beauty, Inc.(1) | 20,123 | 5,778,521 | ||||||
90,347,624 | ||||||||
Technology Hardware, Storage and Peripherals — 7.4% | ||||||||
Apple, Inc. | 1,171,078 | 155,390,340 | ||||||
NetApp, Inc. | 161,323 | 10,686,036 | ||||||
Western Digital Corp. | 188,332 | 10,431,709 | ||||||
176,508,085 | ||||||||
Textiles, Apparel and Luxury Goods — 1.3% | ||||||||
Levi Strauss & Co., Class A | 245,059 | 4,920,785 | ||||||
Ralph Lauren Corp. | 101,620 | 10,542,059 | ||||||
Tapestry, Inc. | 538,245 | 16,728,654 | ||||||
32,191,498 | ||||||||
TOTAL COMMON STOCKS (Cost $1,730,465,795) | 2,377,512,409 | |||||||
TEMPORARY CASH INVESTMENTS — 0.4% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.75%, 11/30/23 - 11/15/43, valued at $4,100,756), in a joint trading account at 0.06%, dated 12/31/20, due 1/4/21 (Delivery value $4,017,135) | 4,017,108 | |||||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 0.125%, 10/15/23, valued at $5,121,453), at 0.06%, dated 12/31/20, due 1/4/21 (Delivery value $5,021,033) | 5,021,000 | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 4,005 | 4,005 | ||||||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $9,042,113) | 9,042,113 | |||||||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $1,739,507,908) | 2,386,554,522 | |||||||
OTHER ASSETS AND LIABILITIES† | (227,560) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 2,386,326,962 |
NOTES TO SCHEDULE OF INVESTMENTS |
†Category is less than 0.05% of total net assets.
(1)Non-income producing.
See Notes to Financial Statements.
11
Statement of Assets and Liabilities |
DECEMBER 31, 2020 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $1,739,507,908) | $ | 2,386,554,522 | |||
Receivable for capital shares sold | 961,410 | ||||
Dividends and interest receivable | 2,251,650 | ||||
2,389,767,582 | |||||
Liabilities | |||||
Payable for capital shares redeemed | 2,153,447 | ||||
Accrued management fees | 1,249,212 | ||||
Distribution and service fees payable | 30,127 | ||||
Dividends payable | 7,834 | ||||
3,440,620 | |||||
Net Assets | $ | 2,386,326,962 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 1,587,073,627 | |||
Distributable earnings | 799,253,335 | ||||
$ | 2,386,326,962 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $1,985,716,811 | 62,458,544 | $31.79 | ||||||||
I Class, $0.01 Par Value | $295,804,424 | 9,292,493 | $31.83 | ||||||||
A Class, $0.01 Par Value | $71,751,847 | 2,260,735 | $31.74* | ||||||||
C Class, $0.01 Par Value | $5,950,459 | 190,202 | $31.28 | ||||||||
R Class, $0.01 Par Value | $24,354,019 | 766,695 | $31.76 | ||||||||
R5 Class, $0.01 Par Value | $2,749,402 | 86,358 | $31.84 |
*Maximum offering price $33.68 (net asset value divided by 0.9425).
See Notes to Financial Statements.
12
Statement of Operations |
FOR THE SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $5,256) | $ | 19,535,224 | |||
Interest | 14,081 | ||||
19,549,305 | |||||
Expenses: | |||||
Management fees | 7,273,262 | ||||
Distribution and service fees: | |||||
A Class | 83,179 | ||||
C Class | 29,038 | ||||
R Class | 57,598 | ||||
Directors' fees and expenses | 81,967 | ||||
Other expenses | 11,795 | ||||
7,536,839 | |||||
Net investment income (loss) | 12,012,466 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | 196,209,570 | ||||
Futures contract transactions | 9,448,295 | ||||
205,657,865 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 159,626,339 | ||||
Futures contracts | (1,229,662) | ||||
158,396,677 | |||||
Net realized and unrealized gain (loss) | 364,054,542 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 376,067,008 |
See Notes to Financial Statements.
13
Statement of Changes in Net Assets |
SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED) AND YEAR ENDED JUNE 30, 2020 | ||||||||
Increase (Decrease) in Net Assets | December 31, 2020 | June 30, 2020 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 12,012,466 | $ | 27,692,706 | ||||
Net realized gain (loss) | 205,657,865 | 359,535,171 | ||||||
Change in net unrealized appreciation (depreciation) | 158,396,677 | (241,763,983) | ||||||
Net increase (decrease) in net assets resulting from operations | 376,067,008 | 145,463,894 | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (216,286,047) | (193,302,904) | ||||||
I Class | (32,117,020) | (40,657,808) | ||||||
A Class | (7,665,563) | (6,862,367) | ||||||
C Class | (629,536) | (598,033) | ||||||
R Class | (2,597,228) | (2,047,280) | ||||||
R5 Class | (300,019) | (218,843) | ||||||
Decrease in net assets from distributions | (259,595,413) | (243,687,235) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (30,261,402) | (449,071,936) | ||||||
Net increase (decrease) in net assets | 86,210,193 | (547,295,277) | ||||||
Net Assets | ||||||||
Beginning of period | 2,300,116,769 | 2,847,412,046 | ||||||
End of period | $ | 2,386,326,962 | $ | 2,300,116,769 |
See Notes to Financial Statements.
14
Notes to Financial Statements |
DECEMBER 31, 2020 (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. Equity Growth Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek long-term capital growth by investing in common stocks.
The fund offers the Investor Class, I Class, A Class, C Class, R Class and R5 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.
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 (NAV) 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.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price.
Open-end management investment companies are valued at the reported NAV 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.
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 NAV 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. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
15
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.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
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, if any, are generally declared and paid quarterly. Distributions from net realized gains, if any, are generally declared and paid annually. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
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.
16
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. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 9% of the shares of the fund.
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 ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, 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. 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 fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds.
The Investment Category Fee range, the Complex Fee range and the effective annual management fee for each class for the period ended December 31, 2020 are as follows:
Investment Category Fee Range | Complex Fee Range | Effective Annual Management Fee | |||||||||
Investor Class | 0.3380% to 0.5200% | 0.2500% to 0.3100% | 0.65% | ||||||||
I Class | 0.0500% to 0.1100% | 0.45% | |||||||||
A Class | 0.2500% to 0.3100% | 0.65% | |||||||||
C Class | 0.2500% to 0.3100% | 0.65% | |||||||||
R Class | 0.2500% to 0.3100% | 0.65% | |||||||||
R5 Class | 0.0500% to 0.1100% | 0.45% |
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 ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. 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 December 31, 2020 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.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $39,461,717 and $50,094,753, respectively. The effect of interfund transactions on the Statement of Operations was $2,629,065 in net realized gain (loss) on investment transactions.
17
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended December 31, 2020 were $2,190,859,972 and $2,401,649,621, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended December 31, 2020 | Year ended June 30, 2020 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 850,000,000 | 680,000,000 | ||||||||||||
Sold | 1,311,373 | $ | 43,567,730 | 3,076,813 | $ | 91,838,331 | ||||||||
Issued in reinvestment of distributions | 6,718,741 | 210,701,166 | 6,045,901 | 188,741,405 | ||||||||||
Redeemed | (4,411,064) | (144,590,435) | (22,435,146) | (701,557,557) | ||||||||||
3,619,050 | 109,678,461 | (13,312,432) | (420,977,821) | |||||||||||
I Class/Shares Authorized | 140,000,000 | 120,000,000 | ||||||||||||
Sold | 759,642 | 24,962,761 | 2,921,120 | 85,171,554 | ||||||||||
Issued in reinvestment of distributions | 1,008,585 | 31,677,114 | 1,283,020 | 40,071,785 | ||||||||||
Redeemed | (6,257,650) | (206,127,006) | (4,461,127) | (137,401,925) | ||||||||||
(4,489,423) | (149,487,131) | (256,987) | (12,158,586) | |||||||||||
A Class/Shares Authorized | 40,000,000 | 45,000,000 | ||||||||||||
Sold | 185,293 | 6,135,160 | 262,546 | 7,894,410 | ||||||||||
Issued in reinvestment of distributions | 225,139 | 7,049,378 | 202,427 | 6,313,811 | ||||||||||
Redeemed | (175,369) | (5,726,628) | (998,318) | (30,297,298) | ||||||||||
235,063 | 7,457,910 | (533,345) | (16,089,077) | |||||||||||
C Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 12,714 | 414,027 | 20,012 | 578,499 | ||||||||||
Issued in reinvestment of distributions | 19,316 | 596,100 | 17,839 | 550,419 | ||||||||||
Redeemed | (37,997) | (1,210,706) | (77,138) | (2,307,450) | ||||||||||
(5,967) | (200,579) | (39,287) | (1,178,532) | |||||||||||
R Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 68,011 | 2,236,106 | 216,601 | 6,406,575 | ||||||||||
Issued in reinvestment of distributions | 80,154 | 2,509,711 | 65,573 | 2,047,260 | ||||||||||
Redeemed | (85,632) | (2,801,455) | (253,381) | (7,460,016) | ||||||||||
62,533 | 1,944,362 | 28,793 | 993,819 | |||||||||||
R5 Class/Shares Authorized | 40,000,000 | 50,000,000 | ||||||||||||
Sold | 10,495 | 343,057 | 14,171 | 425,154 | ||||||||||
Issued in reinvestment of distributions | 9,440 | 296,484 | 7,007 | 218,843 | ||||||||||
Redeemed | (9,182) | (293,966) | (10,714) | (305,736) | ||||||||||
10,753 | 345,575 | 10,464 | 338,261 | |||||||||||
Net increase (decrease) | (567,991) | $ | (30,261,402) | (14,102,794) | $ | (449,071,936) |
18
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 | |||||||||||
Common Stocks | $ | 2,377,512,409 | — | — | |||||||
Temporary Cash Investments | 4,005 | $ | 9,038,108 | — | |||||||
$ | 2,377,516,414 | $ | 9,038,108 | — |
7. Derivative Instruments
Equity Price Risk — The fund is subject to equity price risk in the normal course of pursuing its investment objectives. A fund may enter into futures contracts based on an equity index in order to manage its exposure to changes in market conditions. 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 is required to deposit either cash or securities in an amount equal to a certain percentage of the contract value (initial margin). 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 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. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. The fund's average notional exposure to equity price risk derivative instruments held during the period was $41,290,310 futures contracts purchased.
At period end, the fund did not have any derivative instruments disclosed on the Statement of Assets and Liabilities. For the six months ended December 31, 2020, the effect of equity price risk derivative instruments on the Statement of Operations was $9,448,295 in net realized gain (loss) on futures contract transactions and $(1,229,662) in change in net unrealized appreciation (depreciation) on futures contracts.
8. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
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.
19
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 | $ | 1,743,811,331 | |||
Gross tax appreciation of investments | $ | 651,036,707 | |||
Gross tax depreciation of investments | (8,293,516) | ||||
Net tax appreciation (depreciation) of investments | $ | 642,743,191 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
20
Financial Highlights |
For a Share Outstanding Throughout the Years Ended June 30 (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 | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $30.41 | 0.17 | 5.05 | 5.22 | (0.17) | (3.67) | (3.84) | $31.79 | 17.37% | 0.66%(4) | 1.02%(4) | 97% | $1,985,717 | ||||||||||||||||||||||||||||
2020 | $31.73 | 0.34 | 1.58 | 1.92 | (0.33) | (2.91) | (3.24) | $30.41 | 5.86% | 0.67% | 1.09% | 113% | $1,789,426 | ||||||||||||||||||||||||||||
2019 | $33.36 | 0.39 | 1.56 | 1.95 | (0.37) | (3.21) | (3.58) | $31.73 | 7.21% | 0.67% | 1.23% | 80% | $2,289,532 | ||||||||||||||||||||||||||||
2018 | $31.79 | 0.43 | 4.40 | 4.83 | (0.40) | (2.86) | (3.26) | $33.36 | 15.62% | 0.66% | 1.30% | 84% | $2,557,773 | ||||||||||||||||||||||||||||
2017 | $27.44 | 0.40 | 4.50 | 4.90 | (0.40) | (0.15) | (0.55) | $31.79 | 17.99% | 0.67% | 1.34% | 85% | $2,542,710 | ||||||||||||||||||||||||||||
2016 | $30.56 | 0.41 | (1.29) | (0.88) | (0.40) | (1.84) | (2.24) | $27.44 | (2.78)% | 0.67% | 1.45% | 91% | $2,488,951 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $30.45 | 0.20 | 5.06 | 5.26 | (0.21) | (3.67) | (3.88) | $31.83 | 17.48% | 0.46%(4) | 1.22%(4) | 97% | $295,804 | ||||||||||||||||||||||||||||
2020 | $31.76 | 0.40 | 1.59 | 1.99 | (0.39) | (2.91) | (3.30) | $30.45 | 6.10% | 0.47% | 1.29% | 113% | $419,610 | ||||||||||||||||||||||||||||
2019 | $33.39 | 0.45 | 1.56 | 2.01 | (0.43) | (3.21) | (3.64) | $31.76 | 7.41% | 0.47% | 1.43% | 80% | $445,933 | ||||||||||||||||||||||||||||
2018 | $31.82 | 0.50 | 4.40 | 4.90 | (0.47) | (2.86) | (3.33) | $33.39 | 15.87% | 0.46% | 1.50% | 84% | $392,859 | ||||||||||||||||||||||||||||
2017 | $27.46 | 0.46 | 4.51 | 4.97 | (0.46) | (0.15) | (0.61) | $31.82 | 18.21% | 0.47% | 1.54% | 85% | $471,260 | ||||||||||||||||||||||||||||
2016 | $30.58 | 0.46 | (1.29) | (0.83) | (0.45) | (1.84) | (2.29) | $27.46 | (2.58)% | 0.47% | 1.65% | 91% | $453,858 |
For a Share Outstanding Throughout the Years Ended June 30 (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 | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
A Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $30.36 | 0.13 | 5.05 | 5.18 | (0.13) | (3.67) | (3.80) | $31.74 | 17.24% | 0.91%(4) | 0.77%(4) | 97% | $71,752 | ||||||||||||||||||||||||||||
2020 | $31.69 | 0.26 | 1.57 | 1.83 | (0.25) | (2.91) | (3.16) | $30.36 | 5.57% | 0.92% | 0.84% | 113% | $61,504 | ||||||||||||||||||||||||||||
2019 | $33.32 | 0.31 | 1.57 | 1.88 | (0.30) | (3.21) | (3.51) | $31.69 | 6.96% | 0.92% | 0.98% | 80% | $81,086 | ||||||||||||||||||||||||||||
2018 | $31.76 | 0.35 | 4.39 | 4.74 | (0.32) | (2.86) | (3.18) | $33.32 | 15.32% | 0.91% | 1.05% | 84% | $91,750 | ||||||||||||||||||||||||||||
2017 | $27.41 | 0.32 | 4.50 | 4.82 | (0.32) | (0.15) | (0.47) | $31.76 | 17.71% | 0.92% | 1.09% | 85% | $116,980 | ||||||||||||||||||||||||||||
2016 | $30.53 | 0.33 | (1.29) | (0.96) | (0.32) | (1.84) | (2.16) | $27.41 | (3.03)% | 0.92% | 1.20% | 91% | $144,365 | ||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $29.98 | —(5) | 4.97 | 4.97 | —(5) | (3.67) | (3.67) | $31.28 | 16.75% | 1.66%(4) | 0.02%(4) | 97% | $5,950 | ||||||||||||||||||||||||||||
2020 | $31.34 | 0.03 | 1.55 | 1.58 | (0.03) | (2.91) | (2.94) | $29.98 | 4.80% | 1.67% | 0.09% | 113% | $5,880 | ||||||||||||||||||||||||||||
2019 | $33.00 | 0.07 | 1.55 | 1.62 | (0.07) | (3.21) | (3.28) | $31.34 | 6.17% | 1.67% | 0.23% | 80% | $7,378 | ||||||||||||||||||||||||||||
2018 | $31.50 | 0.10 | 4.34 | 4.44 | (0.08) | (2.86) | (2.94) | $33.00 | 14.48% | 1.66% | 0.30% | 84% | $11,191 | ||||||||||||||||||||||||||||
2017 | $27.19 | 0.10 | 4.46 | 4.56 | (0.10) | (0.15) | (0.25) | $31.50 | 16.78% | 1.67% | 0.34% | 85% | $11,777 | ||||||||||||||||||||||||||||
2016 | $30.29 | 0.12 | (1.27) | (1.15) | (0.11) | (1.84) | (1.95) | $27.19 | (3.73)% | 1.67% | 0.45% | 91% | $12,542 | ||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $30.38 | 0.09 | 5.04 | 5.13 | (0.08) | (3.67) | (3.75) | $31.76 | 17.07% | 1.16%(4) | 0.52%(4) | 97% | $24,354 | ||||||||||||||||||||||||||||
2020 | $31.71 | 0.18 | 1.57 | 1.75 | (0.17) | (2.91) | (3.08) | $30.38 | 5.31% | 1.17% | 0.59% | 113% | $21,394 | ||||||||||||||||||||||||||||
2019 | $33.34 | 0.23 | 1.57 | 1.80 | (0.22) | (3.21) | (3.43) | $31.71 | 6.69% | 1.17% | 0.73% | 80% | $21,413 | ||||||||||||||||||||||||||||
2018 | $31.78 | 0.28 | 4.37 | 4.65 | (0.23) | (2.86) | (3.09) | $33.34 | 15.06% | 1.16% | 0.80% | 84% | $22,576 | ||||||||||||||||||||||||||||
2017 | $27.43 | 0.25 | 4.50 | 4.75 | (0.25) | (0.15) | (0.40) | $31.78 | 17.37% | 1.17% | 0.84% | 85% | $31,953 | ||||||||||||||||||||||||||||
2016 | $30.54 | 0.27 | (1.29) | (1.02) | (0.25) | (1.84) | (2.09) | $27.43 | (3.24)% | 1.17% | 0.95% | 91% | $28,535 |
For a Share Outstanding Throughout the Years Ended June 30 (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 | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
R5 Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $30.45 | 0.20 | 5.07 | 5.27 | (0.21) | (3.67) | (3.88) | $31.84 | 17.51% | 0.46%(4) | 1.22%(4) | 97% | $2,749 | ||||||||||||||||||||||||||||
2020 | $31.77 | 0.40 | 1.58 | 1.98 | (0.39) | (2.91) | (3.30) | $30.45 | 6.06% | 0.47% | 1.29% | 113% | $2,302 | ||||||||||||||||||||||||||||
2019 | $33.39 | 0.45 | 1.57 | 2.02 | (0.43) | (3.21) | (3.64) | $31.77 | 7.44% | 0.47% | 1.43% | 80% | $2,069 | ||||||||||||||||||||||||||||
2018 | $31.82 | 0.43 | 4.47 | 4.90 | (0.47) | (2.86) | (3.33) | $33.39 | 15.83% | 0.46% | 1.50% | 84% | $1,556 | ||||||||||||||||||||||||||||
2017(6) | $31.12 | 0.11 | 0.69 | 0.80 | (0.10) | — | (0.10) | $31.82 | 2.58% | 0.47%(4) | 1.60%(4) | 85%(7) | $5 |
Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(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.
(3)Six months ended December 31, 2020 (unaudited).
(4)Annualized.
(5)Per-share amount was less than $0.005.
(6)April 10, 2017 (commencement of sale) through June 30, 2017.
(7)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended June 30, 2017.
See Notes to Financial Statements.
Additional Information |
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 American Century Investments’ website at americancentury.com/proxy. 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 americancentury.com/proxy. 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 as an exhibit to its reports on Form N-PORT. The fund’s 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.
24
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 | |||||||
American Century Quantitative Equity Funds, 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. | ||||||||
©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-91455 2102 |
Semiannual Report | |||||
December 31, 2020 | |||||
Global Gold Fund | |||||
Investor Class (BGEIX) | |||||
I Class (AGGNX) | |||||
A Class (ACGGX) | |||||
C Class (AGYCX) | |||||
R Class (AGGWX) |
Table of Contents |
President's Letter | |||||
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Additional Information |
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.
President’s Letter |
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended December 31, 2020. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Stocks Soared as Backdrop Improved
The reporting period began amid an extraordinary recovery from massive market and economic disruptions triggered by the COVID-19 pandemic. Thanks to swift and aggressive action from central banks and federal governments, stocks and other riskier assets rebounded quickly as investors regained confidence in the global financial markets. In addition, the gradual reopening of economies along with COVID-19 treatment and vaccine progress also helped fuel the market's summer recovery.
Challenges related to the virus’s spread and the upcoming U.S. elections emerged in the fall. However, the November 3 election results removed some of the prevailing political uncertainty. Additionally, U.S. and European regulatory agencies approved the emergency use of two COVID-19 vaccines, and the U.S. Congress passed a second coronavirus fiscal aid package. These events, along with the U.K.’s orderly exit from the European Union, prompted a strong rally among global stocks. Investors looked ahead optimistically, even as a surge in COVID-19 infection rates triggered new lockdown measures.
Overall, global stocks delivered robust six-month returns. Non-U.S. stocks generally outpaced U.S. stocks, and within the U.S. market, small-cap stocks (Russell 2000 Index) were top performers, gaining nearly 38%. Growth stocks modestly outperformed value stocks across the board.
A Return to Normalcy
The return to pre-pandemic life appears to be on the horizon now that the first COVID-19 vaccines are available. In addition, medical professionals continue to improve treatment protocols for those afflicted with the virus. However, until the vaccine is widely distributed, investors may face periods of outbreak-related disruptions, economic uncertainty and heightened market volatility. These influences can be unsettling, but they tend to be temporary.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
DECEMBER 31, 2020 | |||||
Top Ten Holdings | % of net assets | ||||
Newmont Corp. | 12.1% | ||||
Barrick Gold Corp. | 10.1% | ||||
Franco-Nevada Corp.* | 6.5% | ||||
Wheaton Precious Metals Corp. | 4.7% | ||||
Newcrest Mining Ltd. | 4.5% | ||||
Kirkland Lake Gold Ltd. | 4.0% | ||||
Agnico Eagle Mines Ltd. (New York) | 3.9% | ||||
AngloGold Ashanti Ltd.* | 3.5% | ||||
Kinross Gold Corp. (New York) | 3.2% | ||||
Yamana Gold, Inc.* | 2.7% | ||||
*Includes shares traded on all exchanges. | |||||
Geographic Composition | % of net assets | ||||
Canada | 58.4% | ||||
United States | 16.1% | ||||
Australia | 11.0% | ||||
South Africa | 6.2% | ||||
United Kingdom | 3.8% | ||||
China | 2.8% | ||||
Peru | 0.7% | ||||
Exchange-Traded Funds | 0.9% | ||||
Cash and Equivalents* | 0.1% | ||||
*Includes temporary cash investments, temporary cash investments - securities lending collateral and other assets and liabilities | |||||
Types of Investments in Portfolio | % of net assets | ||||
Foreign Common Stocks | 82.9% | ||||
Domestic Common Stocks | 16.1% | ||||
Exchange-Traded Funds | 0.9% | ||||
Total Equity Exposure | 99.9% | ||||
Temporary Cash Investments | —* | ||||
Temporary Cash Investments - Securities Lending Collateral | —* | ||||
Other Assets and Liabilities | 0.1% |
*Category is less than 0.05% of total net assets.
3
Shareholder Fee Example |
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 July 1, 2020 to December 31, 2020.
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 through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual 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 $25.00 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.
4
Beginning Account Value 7/1/20 | Ending Account Value 12/31/20 | Expenses Paid During Period(1) 7/1/20 - 12/31/20 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $964.20 | $3.27 | 0.66% | ||||||||||
I Class | $1,000 | $965.60 | $2.28 | 0.46% | ||||||||||
A Class | $1,000 | $963.50 | $4.50 | 0.91% | ||||||||||
C Class | $1,000 | $959.60 | $8.20 | 1.66% | ||||||||||
R Class | $1,000 | $961.60 | $5.74 | 1.16% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,021.88 | $3.36 | 0.66% | ||||||||||
I Class | $1,000 | $1,022.89 | $2.35 | 0.46% | ||||||||||
A Class | $1,000 | $1,020.62 | $4.63 | 0.91% | ||||||||||
C Class | $1,000 | $1,016.84 | $8.44 | 1.66% | ||||||||||
R Class | $1,000 | $1,019.36 | $5.90 | 1.16% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
5
Schedule of Investments |
DECEMBER 31, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.0% | ||||||||
Australia — 11.0% | ||||||||
Evolution Mining Ltd. | 4,690,200 | $ | 17,824,269 | |||||
Newcrest Mining Ltd. | 1,736,413 | 34,591,052 | ||||||
Northern Star Resources Ltd. | 1,793,200 | 17,350,797 | ||||||
Perseus Mining Ltd.(1) | 3,645,100 | 3,613,651 | ||||||
Regis Resources Ltd. | 1,048,783 | 2,999,329 | ||||||
Saracen Mineral Holdings Ltd.(1) | 886,734 | 3,259,755 | ||||||
Silver Lake Resources Ltd.(1) | 2,802,100 | 3,822,506 | ||||||
Westgold Resources Ltd.(1) | 864,300 | 1,740,900 | ||||||
85,202,259 | ||||||||
Canada — 58.4% | ||||||||
Agnico Eagle Mines Ltd. (New York) | 427,200 | 30,121,872 | ||||||
Alamos Gold, Inc., Class A, (New York) | 888,600 | 7,775,250 | ||||||
B2Gold Corp. (New York) | 3,413,100 | 19,113,360 | ||||||
Barrick Gold Corp. | 3,407,820 | 77,630,140 | ||||||
Centerra Gold, Inc. | 875,500 | 10,138,165 | ||||||
Dundee Precious Metals, Inc.(2) | 1,241,400 | 8,923,568 | ||||||
Eldorado Gold Corp. (Toronto)(1) | 858,400 | 11,376,548 | ||||||
Endeavour Mining Corp.(1) | 126,865 | 2,952,110 | ||||||
First Majestic Silver Corp. (New York)(1)(2) | 619,700 | 8,328,768 | ||||||
First Quantum Minerals Ltd. | 513,600 | 9,219,703 | ||||||
Fortuna Silver Mines, Inc.(1) | 886,200 | 7,302,288 | ||||||
Franco-Nevada Corp. | 12,400 | 1,554,749 | ||||||
Franco-Nevada Corp. (New York) | 387,900 | 48,615,507 | ||||||
GoGold Resources, Inc.(1) | 4,050,000 | 7,413,387 | ||||||
Gran Colombia Gold Corp. | 910,900 | 5,767,817 | ||||||
K92 Mining, Inc.(1) | 628,100 | 3,755,080 | ||||||
Kinross Gold Corp. (New York) | 3,344,557 | 24,549,048 | ||||||
Kirkland Lake Gold Ltd. | 755,178 | 31,206,193 | ||||||
Lundin Mining Corp. | 181,000 | 1,606,803 | ||||||
New Gold, Inc.(1) | 2,099,800 | 4,598,562 | ||||||
New Gold, Inc. (Toronto)(1) | 550,600 | 1,211,156 | ||||||
Orezone Gold Corp.(1) | 5,150,000 | 4,450,467 | ||||||
Osisko Gold Royalties Ltd. | 324,000 | 4,108,320 | ||||||
Osisko Gold Royalties Ltd. (Toronto) | 200,900 | 2,545,775 | ||||||
Pan American Silver Corp. | 171,100 | 5,900,927 | ||||||
Pan American Silver Corp. (NASDAQ) | 376,200 | 12,982,662 | ||||||
Pure Gold Mining, Inc.(1) | 489,700 | 992,557 | ||||||
Roxgold, Inc.(1) | 5,055,000 | 6,393,707 | ||||||
Silvercorp Metals, Inc. | 314,700 | 2,105,343 | ||||||
SSR Mining, Inc.(1) | 521,362 | 10,469,018 | ||||||
SSR Mining, Inc. (NASDAQ)(1) | 96,900 | 1,948,659 | ||||||
Teranga Gold Corp.(1) | 682,038 | 7,319,223 | ||||||
Torex Gold Resources, Inc.(1) | 479,600 | 7,192,681 | ||||||
Wesdome Gold Mines Ltd.(1) | 431,700 | 3,601,739 | ||||||
Wheaton Precious Metals Corp. | 861,400 | 35,954,836 | ||||||
Yamana Gold, Inc. | 737,400 | 4,211,563 |
6
Shares | Value | |||||||
Yamana Gold, Inc. (New York) | 2,966,881 | $ | 16,940,891 | |||||
450,278,442 | ||||||||
China — 2.8% | ||||||||
Zhaojin Mining Industry Co. Ltd., H Shares | 2,710,000 | 3,203,801 | ||||||
Zijin Mining Group Co. Ltd., H Shares | 16,208,000 | 18,235,653 | ||||||
21,439,454 | ||||||||
Peru — 0.7% | ||||||||
Cia de Minas Buenaventura SAA, ADR(1) | 428,400 | 5,222,196 | ||||||
South Africa — 6.2% | ||||||||
AngloGold Ashanti Ltd. | 95,502 | 2,183,237 | ||||||
AngloGold Ashanti Ltd., ADR | 1,074,976 | 24,315,957 | ||||||
Gold Fields Ltd., ADR | 2,274,200 | 21,081,834 | ||||||
47,581,028 | ||||||||
United Kingdom — 3.8% | ||||||||
Anglo American plc | 235,100 | 7,830,548 | ||||||
BHP Group plc | 362,600 | 9,555,895 | ||||||
Centamin plc | 3,181,000 | 5,325,838 | ||||||
Rio Tinto plc | 85,900 | 6,427,374 | ||||||
29,139,655 | ||||||||
United States — 16.1% | ||||||||
Coeur Mining, Inc.(1) | 365,100 | 3,778,785 | ||||||
Freeport-McMoRan, Inc. | 121,900 | 3,171,838 | ||||||
Hecla Mining Co. | 1,836,200 | 11,898,576 | ||||||
Newmont Corp. | 1,557,280 | 93,265,499 | ||||||
Royal Gold, Inc. | 114,921 | 12,222,998 | ||||||
124,337,696 | ||||||||
TOTAL COMMON STOCKS (Cost $479,024,216) | 763,200,730 | |||||||
EXCHANGE-TRADED FUNDS — 0.9% | ||||||||
SPDR Gold Shares(1) (Cost $7,016,790) | 40,100 | 7,152,236 | ||||||
TEMPORARY CASH INVESTMENTS† | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.75%, 11/30/23 - 11/15/43, valued at $66,395), in a joint trading account at 0.06%, dated 12/31/20, due 1/4/21 (Delivery value $65,041) | 65,040 | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 91 | 91 | ||||||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $65,131) | 65,131 | |||||||
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3)† | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $261,250) | 261,250 | 261,250 | ||||||
TOTAL INVESTMENT SECURITIES — 99.9% (Cost $486,367,387) | 770,679,347 | |||||||
OTHER ASSETS AND LIABILITIES — 0.1% | 421,444 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 771,100,791 |
7
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
ADR | - | American Depositary Receipt |
†Category is less than 0.05% of total net assets.
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $1,514,752. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $1,614,983, which includes securities collateral of $1,353,733.
See Notes to Financial Statements.
8
Statement of Assets and Liabilities |
DECEMBER 31, 2020 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $486,106,137) — including $1,514,752 of securities on loan | $ | 770,418,097 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $261,250) | 261,250 | ||||
Total investment securities, at value (cost of $486,367,387) | 770,679,347 | ||||
Foreign currency holdings, at value (cost of $194,190) | 196,326 | ||||
Receivable for investments sold | 1,081,809 | ||||
Receivable for capital shares sold | 1,841,810 | ||||
Dividends and interest receivable | 261,314 | ||||
Securities lending receivable | 65 | ||||
774,060,671 | |||||
Liabilities | |||||
Disbursements in excess of demand deposit cash | 8,081 | ||||
Payable for collateral received for securities on loan | 261,250 | ||||
Payable for investments purchased | 1,605,912 | ||||
Payable for capital shares redeemed | 665,507 | ||||
Accrued management fees | 405,993 | ||||
Distribution and service fees payable | 13,137 | ||||
2,959,880 | |||||
Net Assets | $ | 771,100,791 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 606,235,083 | |||
Distributable earnings | 164,865,708 | ||||
$ | 771,100,791 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $636,959,453 | 48,689,113 | $13.08 | ||||||||
I Class, $0.01 Par Value | $96,322,055 | 7,278,544 | $13.23 | ||||||||
A Class, $0.01 Par Value | $22,373,404 | 1,749,272 | $12.79* | ||||||||
C Class, $0.01 Par Value | $4,354,087 | 359,186 | $12.12 | ||||||||
R Class, $0.01 Par Value | $11,091,792 | 877,798 | $12.64 |
*Maximum offering price $13.57 (net asset value divided by 0.9425).
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $500,798) | $ | 5,222,180 | |||
Securities lending, net | 71,854 | ||||
Interest | 2,630 | ||||
5,296,664 | |||||
Expenses: | |||||
Management fees | 2,657,504 | ||||
Distribution and service fees: | |||||
A Class | 28,595 | ||||
C Class | 25,095 | ||||
R Class | 28,458 | ||||
Directors' fees and expenses | 29,441 | ||||
Other expenses | 17,311 | ||||
2,786,404 | |||||
Net investment income (loss) | 2,510,260 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | 19,581,326 | ||||
Foreign currency translation transactions | 184,653 | ||||
19,765,979 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | (58,223,014) | ||||
Translation of assets and liabilities in foreign currencies | (2,296) | ||||
(58,225,310) | |||||
Net realized and unrealized gain (loss) | (38,459,331) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (35,949,071) |
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED) AND YEAR ENDED JUNE 30, 2020 | ||||||||
Increase (Decrease) in Net Assets | December 31, 2020 | June 30, 2020 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 2,510,260 | $ | 1,903,705 | ||||
Net realized gain (loss) | 19,765,979 | 16,960,803 | ||||||
Change in net unrealized appreciation (depreciation) | (58,225,310) | 184,510,203 | ||||||
Net increase (decrease) in net assets resulting from operations | (35,949,071) | 203,374,711 | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (3,390,463) | (4,394,193) | ||||||
I Class | (596,424) | (560,018) | ||||||
A Class | (89,030) | (82,256) | ||||||
R Class | (30,153) | (25,464) | ||||||
Decrease in net assets from distributions | (4,106,070) | (5,061,931) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 60,589,917 | 103,964,323 | ||||||
Net increase (decrease) in net assets | 20,534,776 | 302,277,103 | ||||||
Net Assets | ||||||||
Beginning of period | 750,566,015 | 448,288,912 | ||||||
End of period | $ | 771,100,791 | $ | 750,566,015 |
See Notes to Financial Statements.
11
Notes to Financial Statements |
DECEMBER 31, 2020 (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. Global Gold Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek to realize a total return (capital growth and dividends) consistent with investment in securities of companies that are engaged in mining, processing, fabricating or distributing gold or other precious metals throughout the world.
The fund offers the Investor Class, I Class, A Class, 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.
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 (NAV) 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.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity 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 NAV per share. Repurchase agreements are valued at cost, which approximates fair value.
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.
12
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV 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. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
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.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
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.
13
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, if any, are generally declared and paid semiannually. Distributions from 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.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of December 31, 2020.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 261,250 | — | — | — | $ | 261,250 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 261,250 |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
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.
14
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 ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, 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. 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 fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds.
The Investment Category Fee range, the Complex Fee range and the effective annual management fee for each class for the period ended December 31, 2020 are as follows:
Investment Category Fee Range | Complex Fee Range | Effective Annual Management Fee | |||||||||
Investor Class | 0.3380% to 0.5200% | 0.2500% to 0.3100% | 0.65% | ||||||||
I Class | 0.0500% to 0.1100% | 0.45% | |||||||||
A Class | 0.2500% to 0.3100% | 0.65% | |||||||||
C Class | 0.2500% to 0.3100% | 0.65% | |||||||||
R Class | 0.2500% to 0.3100% | 0.65% |
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 ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. 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 December 31, 2020 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.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund sales were $2,138,659 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $1,098,912 in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended December 31, 2020 were $556,120,674 and $484,780,310, respectively.
15
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended December 31, 2020 | Year ended June 30, 2020 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 800,000,000 | 360,000,000 | ||||||||||||
Sold | 12,391,308 | $ | 181,714,745 | 23,530,168 | $ | 259,679,350 | ||||||||
Issued in reinvestment of distributions | 234,117 | 2,995,809 | 404,401 | 4,136,691 | ||||||||||
Redeemed | (11,234,123) | (159,564,392) | (17,491,083) | (190,197,797) | ||||||||||
1,391,302 | 25,146,162 | 6,443,486 | 73,618,244 | |||||||||||
I Class/Shares Authorized | 100,000,000 | 30,000,000 | ||||||||||||
Sold | 3,073,693 | 43,046,248 | 5,075,948 | 56,439,549 | ||||||||||
Issued in reinvestment of distributions | 46,043 | 596,260 | 53,180 | 559,735 | ||||||||||
Redeemed | (1,259,574) | (17,599,604) | (2,808,552) | (30,720,336) | ||||||||||
1,860,162 | 26,042,904 | 2,320,576 | 26,278,948 | |||||||||||
A Class/Shares Authorized | 30,000,000 | 20,000,000 | ||||||||||||
Sold | 906,181 | 13,153,869 | 902,594 | 9,720,707 | ||||||||||
Issued in reinvestment of distributions | 6,926 | 86,712 | 8,049 | 80,011 | ||||||||||
Redeemed | (348,959) | (4,853,169) | (806,308) | (8,517,206) | ||||||||||
564,148 | 8,387,412 | 104,335 | 1,283,512 | |||||||||||
C Class/Shares Authorized | 20,000,000 | 15,000,000 | ||||||||||||
Sold | 55,862 | 756,956 | 134,297 | 1,385,471 | ||||||||||
Redeemed | (63,192) | (808,810) | (98,829) | (1,015,442) | ||||||||||
(7,330) | (51,854) | 35,468 | 370,029 | |||||||||||
R Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 318,706 | 4,285,996 | 800,388 | 8,567,549 | ||||||||||
Issued in reinvestment of distributions | 1,283 | 15,689 | 2,590 | 25,464 | ||||||||||
Redeemed | (236,898) | (3,236,392) | (599,664) | (6,179,423) | ||||||||||
83,091 | 1,065,293 | 203,314 | 2,413,590 | |||||||||||
Net increase (decrease) | 3,891,373 | $ | 60,589,917 | 9,107,179 | $ | 103,964,323 |
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.
16
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 | |||||||||||
Common Stocks | |||||||||||
Australia | — | $ | 85,202,259 | — | |||||||
Canada | $ | 302,075,506 | 148,202,936 | — | |||||||
China | — | 21,439,454 | — | ||||||||
South Africa | 45,397,791 | 2,183,237 | — | ||||||||
United Kingdom | — | 29,139,655 | — | ||||||||
Other Countries | 129,559,892 | — | — | ||||||||
Exchange-Traded Funds | 7,152,236 | — | — | ||||||||
Temporary Cash Investments | 91 | 65,040 | — | ||||||||
Temporary Cash Investments - Securities Lending Collateral | 261,250 | — | — | ||||||||
$ | 484,446,766 | $ | 286,232,581 | — |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
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.
The fund concentrates its investments in a narrow segment of the total market. Because of this, the fund may be subject to greater risk and market fluctuations than a portfolio representing a broader range of industries. Gold stocks are generally considered speculative because of high share price volatility. The price of gold will likely impact the value of the companies in which the fund invests. The price of gold will fluctuate, sometimes considerably. Though many investors believe that gold investments hedge against inflation, currency devaluations and stock market declines, there is no guarantee that these historical inverse relationships will continue.
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.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 489,612,307 | |||
Gross tax appreciation of investments | $ | 282,436,868 | |||
Gross tax depreciation of investments | (1,369,828) | ||||
Net tax appreciation (depreciation) of investments | $ | 281,067,040 |
17
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 June 30, 2020, the fund had accumulated short-term capital losses of $(41,701,713) and accumulated long-term capital losses of $(84,928,484), 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.
18
Financial Highlights |
For a Share Outstanding Throughout the Years Ended June 30 (except as noted) | |||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||
Income From Investment Operations: | 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 | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||
2020(3) | $13.64 | 0.04 | (0.53) | (0.49) | (0.07) | $13.08 | (3.58)% | 0.66%(4) | 0.60%(4) | 60% | $636,959 | ||||||||||||||||||||||||
2020 | $9.76 | 0.04 | 3.94 | 3.98 | (0.10) | $13.64 | 41.12% | 0.67% | 0.35% | 50% | $644,946 | ||||||||||||||||||||||||
2019 | $8.58 | 0.07 | 1.11 | 1.18 | — | $9.76 | 13.75% | 0.67% | 0.84% | 47% | $398,804 | ||||||||||||||||||||||||
2018 | $8.25 | 0.04 | 0.29 | 0.33 | — | $8.58 | 4.00% | 0.66% | 0.47% | 37% | $347,311 | ||||||||||||||||||||||||
2017 | $11.66 | —(5) | (2.57) | (2.57) | (0.84) | $8.25 | (21.33)% | 0.67% | 0.05% | 27% | $351,207 | ||||||||||||||||||||||||
2016 | $7.21 | —(5) | 4.45 | 4.45 | — | $11.66 | 61.72% | 0.68% | 0.06% | 11% | $474,952 | ||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||
2020(3) | $13.79 | 0.06 | (0.54) | (0.48) | (0.08) | $13.23 | (3.44)% | 0.46%(4) | 0.80%(4) | 60% | $96,322 | ||||||||||||||||||||||||
2020 | $9.88 | 0.06 | 3.98 | 4.04 | (0.13) | $13.79 | 41.34% | 0.47% | 0.55% | 50% | $74,730 | ||||||||||||||||||||||||
2019 | $8.67 | 0.08 | 1.13 | 1.21 | — | $9.88 | 13.96% | 0.47% | 1.04% | 47% | $30,608 | ||||||||||||||||||||||||
2018 | $8.32 | 0.06 | 0.29 | 0.35 | — | $8.67 | 4.21% | 0.46% | 0.67% | 37% | $13,464 | ||||||||||||||||||||||||
2017 | $11.75 | 0.02 | (2.60) | (2.58) | (0.85) | $8.32 | (21.17)% | 0.47% | 0.25% | 27% | $14,717 | ||||||||||||||||||||||||
2016 | $7.25 | 0.02 | 4.48 | 4.50 | — | $11.75 | 62.07% | 0.48% | 0.26% | 11% | $15,579 |
For a Share Outstanding Throughout the Years Ended June 30 (except as noted) | |||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||
Income From Investment Operations: | 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 | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||
A Class | |||||||||||||||||||||||||||||||||||
2020(3) | $13.33 | 0.03 | (0.52) | (0.49) | (0.05) | $12.79 | (3.65)% | 0.91%(4) | 0.35%(4) | 60% | $22,373 | ||||||||||||||||||||||||
2020 | $9.54 | 0.01 | 3.85 | 3.86 | (0.07) | $13.33 | 40.72% | 0.92% | 0.10% | 50% | $15,798 | ||||||||||||||||||||||||
2019 | $8.40 | 0.05 | 1.09 | 1.14 | — | $9.54 | 13.57% | 0.92% | 0.59% | 47% | $10,311 | ||||||||||||||||||||||||
2018 | $8.11 | 0.02 | 0.27 | 0.29 | — | $8.40 | 3.58% | 0.91% | 0.22% | 37% | $7,475 | ||||||||||||||||||||||||
2017 | $11.47 | (0.02) | (2.52) | (2.54) | (0.82) | $8.11 | (21.45)% | 0.92% | (0.20)% | 27% | $7,895 | ||||||||||||||||||||||||
2016 | $7.11 | (0.01) | 4.37 | 4.36 | — | $11.47 | 61.32% | 0.93% | (0.19)% | 11% | $15,196 | ||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||
2020(3) | $12.63 | (0.03) | (0.48) | (0.51) | — | $12.12 | (4.04)% | 1.66%(4) | (0.40)%(4) | 60% | $4,354 | ||||||||||||||||||||||||
2020 | $9.04 | (0.07) | 3.66 | 3.59 | — | $12.63 | 39.71% | 1.67% | (0.65)% | 50% | $4,628 | ||||||||||||||||||||||||
2019 | $8.03 | (0.01) | 1.02 | 1.01 | — | $9.04 | 12.58% | 1.67% | (0.16)% | 47% | $2,994 | ||||||||||||||||||||||||
2018 | $7.80 | (0.04) | 0.27 | 0.23 | — | $8.03 | 2.95% | 1.66% | (0.53)% | 37% | $2,463 | ||||||||||||||||||||||||
2017 | $11.07 | (0.09) | (2.43) | (2.52) | (0.75) | $7.80 | (22.04)% | 1.67% | (0.95)% | 27% | $2,284 | ||||||||||||||||||||||||
2016 | $6.91 | (0.06) | 4.22 | 4.16 | — | $11.07 | 60.20% | 1.68% | (0.94)% | 11% | $2,589 | ||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||
2020(3) | $13.17 | 0.01 | (0.51) | (0.50) | (0.03) | $12.64 | (3.84)% | 1.16%(4) | 0.10%(4) | 60% | $11,092 | ||||||||||||||||||||||||
2020 | $9.42 | (0.01) | 3.80 | 3.79 | (0.04) | $13.17 | 40.44% | 1.17% | (0.15)% | 50% | $10,464 | ||||||||||||||||||||||||
2019 | $8.32 | 0.02 | 1.08 | 1.10 | — | $9.42 | 13.22% | 1.17% | 0.34% | 47% | $5,573 | ||||||||||||||||||||||||
2018 | $8.05 | —(5) | 0.27 | 0.27 | — | $8.32 | 3.35% | 1.16% | (0.03)% | 37% | $5,524 | ||||||||||||||||||||||||
2017 | $11.39 | (0.04) | (2.50) | (2.54) | (0.80) | $8.05 | (21.63)% | 1.17% | (0.45)% | 27% | $4,517 | ||||||||||||||||||||||||
2016 | $7.08 | (0.03) | 4.34 | 4.31 | — | $11.39 | 60.88% | 1.18% | (0.44)% | 11% | $5,176 |
Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(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.
(3)Six months ended December 31, 2020 (unaudited).
(4)Annualized.
(5)Per-share amount was less than $0.005.
See Notes to Financial Statements.
Additional Information |
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 American Century Investments’ website at americancentury.com/proxy. 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 americancentury.com/proxy. 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 as an exhibit to its reports on Form N-PORT. The fund’s 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.
22
Notes |
23
Notes |
24
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 | |||||||
American Century Quantitative Equity Funds, 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. | ||||||||
©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-91453 2102 |
Semiannual Report | |||||
December 31, 2020 | |||||
NT Disciplined Growth Fund | |||||
Investor Class (ANTDX) | |||||
G Class (ANDGX) |
Table of Contents |
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Additional Information |
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.
Fund Characteristics |
DECEMBER 31, 2020 | |||||
Top Ten Holdings | % of net assets | ||||
Apple, Inc. | 11.0% | ||||
Microsoft Corp. | 9.0% | ||||
Amazon.com, Inc. | 7.8% | ||||
Alphabet, Inc., Class A | 3.8% | ||||
Facebook, Inc., Class A | 3.7% | ||||
Tesla, Inc. | 2.8% | ||||
Visa, Inc., Class A | 2.3% | ||||
Mastercard, Inc., Class A | 2.1% | ||||
NVIDIA Corp. | 1.9% | ||||
ServiceNow, Inc. | 1.8% | ||||
Top Five Industries | % of net assets | ||||
Software | 20.4% | ||||
Technology Hardware, Storage and Peripherals | 11.5% | ||||
Semiconductors and Semiconductor Equipment | 10.0% | ||||
Internet and Direct Marketing Retail | 8.9% | ||||
Interactive Media and Services | 7.5% | ||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 99.8% | ||||
Temporary Cash Investments | 0.5% | ||||
Other Assets and Liabilities | (0.3)% |
2
Shareholder Fee Example |
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 July 1, 2020 to December 31, 2020.
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.
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 7/1/20 | Ending Account Value 12/31/20 | Expenses Paid During Period(1) 7/1/20 - 12/31/20 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,186.80 | $5.51 | 1.00% | ||||||||||
G Class | $1,000 | $1,192.40 | $0.06 | 0.01% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,020.16 | $5.09 | 1.00% | ||||||||||
G Class | $1,000 | $1,025.16 | $0.05 | 0.01% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
3
Schedule of Investments |
DECEMBER 31, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.8% | ||||||||
Aerospace and Defense — 0.1% | ||||||||
Boeing Co. (The) | 3,740 | $ | 800,584 | |||||
Air Freight and Logistics — 0.3% | ||||||||
United Parcel Service, Inc., Class B | 9,425 | 1,587,170 | ||||||
Auto Components — 0.5% | ||||||||
Adient plc(1) | 41,034 | 1,426,752 | ||||||
Aptiv plc | 5,309 | 691,710 | ||||||
Visteon Corp.(1) | 5,091 | 639,022 | ||||||
2,757,484 | ||||||||
Automobiles — 3.1% | ||||||||
General Motors Co. | 33,522 | 1,395,856 | ||||||
Tesla, Inc.(1) | 24,455 | 17,257,160 | ||||||
18,653,016 | ||||||||
Biotechnology — 2.0% | ||||||||
AbbVie, Inc. | 64,001 | 6,857,707 | ||||||
Moderna, Inc.(1) | 9,515 | 994,032 | ||||||
Seagen, Inc.(1) | 13,130 | 2,299,588 | ||||||
Vertex Pharmaceuticals, Inc.(1) | 8,325 | 1,967,531 | ||||||
12,118,858 | ||||||||
Building Products — 0.9% | ||||||||
Advanced Drainage Systems, Inc. | 9,135 | 763,503 | ||||||
AO Smith Corp. | 36,266 | 1,988,102 | ||||||
AZEK Co., Inc. (The)(1) | 21,161 | 813,641 | ||||||
Carrier Global Corp. | 44,067 | 1,662,207 | ||||||
5,227,453 | ||||||||
Capital Markets — 0.9% | ||||||||
MSCI, Inc. | 6,634 | 2,962,280 | ||||||
S&P Global, Inc. | 7,933 | 2,607,815 | ||||||
5,570,095 | ||||||||
Chemicals — 0.8% | ||||||||
Scotts Miracle-Gro Co. (The) | 16,737 | 3,333,006 | ||||||
Trinseo SA | 34,072 | 1,744,827 | ||||||
5,077,833 | ||||||||
Communications Equipment — 0.1% | ||||||||
Motorola Solutions, Inc. | 3,857 | 655,921 | ||||||
Construction and Engineering — 0.8% | ||||||||
Ameresco, Inc., Class A(1) | 28,368 | 1,481,944 | ||||||
EMCOR Group, Inc. | 38,653 | 3,535,204 | ||||||
5,017,148 | ||||||||
Consumer Finance — 0.1% | ||||||||
Capital One Financial Corp. | 7,100 | 701,835 | ||||||
Containers and Packaging — 0.3% | ||||||||
Avery Dennison Corp. | 11,053 | 1,714,431 | ||||||
Electrical Equipment — 0.3% | ||||||||
TPI Composites, Inc.(1) | 15,288 | 806,901 | ||||||
Vertiv Holdings Co. | 53,915 | 1,006,593 | ||||||
1,813,494 |
4
Shares | Value | |||||||
Electronic Equipment, Instruments and Components — 0.5% | ||||||||
Itron, Inc.(1) | 7,842 | $ | 752,048 | |||||
Keysight Technologies, Inc.(1) | 17,014 | 2,247,379 | ||||||
2,999,427 | ||||||||
Entertainment — 2.1% | ||||||||
Electronic Arts, Inc. | 10,835 | 1,555,906 | ||||||
Netflix, Inc.(1) | 10,230 | 5,531,668 | ||||||
Roku, Inc.(1) | 5,022 | 1,667,404 | ||||||
Spotify Technology SA(1) | 2,273 | 715,222 | ||||||
Take-Two Interactive Software, Inc.(1) | 13,038 | 2,709,166 | ||||||
Walt Disney Co. (The)(1) | 4,249 | 769,834 | ||||||
12,949,200 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 0.7% | ||||||||
Crown Castle International Corp. | 15,379 | 2,448,183 | ||||||
Simon Property Group, Inc. | 22,671 | 1,933,383 | ||||||
4,381,566 | ||||||||
Food and Staples Retailing — 0.4% | ||||||||
Costco Wholesale Corp. | 5,881 | 2,215,843 | ||||||
Food Products — 0.6% | ||||||||
Freshpet, Inc.(1) | 13,722 | 1,948,387 | ||||||
Hershey Co. (The) | 10,617 | 1,617,287 | ||||||
3,565,674 | ||||||||
Health Care Equipment and Supplies — 3.6% | ||||||||
Align Technology, Inc.(1) | 5,564 | 2,973,290 | ||||||
DexCom, Inc.(1) | 9,224 | 3,410,297 | ||||||
IDEXX Laboratories, Inc.(1) | 7,825 | 3,911,483 | ||||||
Insulet Corp.(1) | 4,637 | 1,185,356 | ||||||
Intuitive Surgical, Inc.(1) | 2,376 | 1,943,806 | ||||||
Novocure Ltd.(1) | 22,473 | 3,888,728 | ||||||
Stryker Corp. | 8,310 | 2,036,283 | ||||||
Tandem Diabetes Care, Inc.(1) | 6,974 | 667,272 | ||||||
West Pharmaceutical Services, Inc. | 7,157 | 2,027,650 | ||||||
22,044,165 | ||||||||
Health Care Providers and Services — 2.5% | ||||||||
Amedisys, Inc.(1) | 4,378 | 1,284,199 | ||||||
Anthem, Inc. | 2,391 | 767,726 | ||||||
Chemed Corp. | 5,351 | 2,849,996 | ||||||
Guardant Health, Inc.(1) | 6,741 | 868,780 | ||||||
HCA Healthcare, Inc. | 10,641 | 1,750,019 | ||||||
UnitedHealth Group, Inc. | 22,476 | 7,881,884 | ||||||
15,402,604 | ||||||||
Health Care Technology — 0.2% | ||||||||
Veeva Systems, Inc., Class A(1) | 5,259 | 1,431,763 | ||||||
Hotels, Restaurants and Leisure — 1.2% | ||||||||
Chipotle Mexican Grill, Inc.(1) | 770 | 1,067,767 | ||||||
Starbucks Corp. | 38,451 | 4,113,488 | ||||||
Texas Roadhouse, Inc. | 8,199 | 640,834 | ||||||
Yum! Brands, Inc. | 14,784 | 1,604,951 | ||||||
7,427,040 | ||||||||
Household Durables — 0.3% | ||||||||
Tempur Sealy International, Inc.(1) | 56,130 | 1,515,510 | ||||||
Household Products — 0.4% | ||||||||
Clorox Co. (The) | 12,950 | 2,614,864 |
5
Shares | Value | |||||||
Industrial Conglomerates — 0.3% | ||||||||
3M Co. | 6,293 | $ | 1,099,954 | |||||
General Electric Co. | 60,548 | 653,918 | ||||||
1,753,872 | ||||||||
Insurance — 0.2% | ||||||||
Kinsale Capital Group, Inc. | 5,005 | 1,001,651 | ||||||
Interactive Media and Services — 7.5% | ||||||||
Alphabet, Inc., Class A(1) | 13,184 | 23,106,806 | ||||||
Facebook, Inc., Class A(1) | 81,307 | 22,209,820 | ||||||
45,316,626 | ||||||||
Internet and Direct Marketing Retail — 8.9% | ||||||||
Amazon.com, Inc.(1) | 14,536 | 47,342,734 | ||||||
Booking Holdings, Inc.(1) | 2,651 | 5,904,493 | ||||||
Etsy, Inc.(1) | 4,190 | 745,443 | ||||||
53,992,670 | ||||||||
IT Services — 7.3% | ||||||||
Accenture plc, Class A | 13,556 | 3,540,963 | ||||||
GoDaddy, Inc., Class A(1) | 7,438 | 616,982 | ||||||
Mastercard, Inc., Class A | 35,057 | 12,513,245 | ||||||
Okta, Inc.(1) | 4,881 | 1,241,043 | ||||||
PayPal Holdings, Inc.(1) | 34,815 | 8,153,673 | ||||||
Square, Inc., Class A(1) | 9,587 | 2,086,515 | ||||||
StoneCo Ltd., A Shares(1) | 18,961 | 1,591,207 | ||||||
Visa, Inc., Class A | 65,005 | 14,218,544 | ||||||
43,962,172 | ||||||||
Life Sciences Tools and Services — 0.9% | ||||||||
Illumina, Inc.(1) | 1,741 | 644,170 | ||||||
Mettler-Toledo International, Inc.(1) | 1,424 | 1,622,904 | ||||||
NeoGenomics, Inc.(1) | 13,578 | 731,039 | ||||||
Repligen Corp.(1) | 12,709 | 2,435,426 | ||||||
5,433,539 | ||||||||
Machinery — 0.9% | ||||||||
Lincoln Electric Holdings, Inc. | 35,222 | 4,094,558 | ||||||
Terex Corp. | 36,332 | 1,267,623 | ||||||
5,362,181 | ||||||||
Media — 0.5% | ||||||||
Cable One, Inc. | 1,398 | 3,114,353 | ||||||
Metals and Mining — 0.2% | ||||||||
Freeport-McMoRan, Inc. | 26,133 | 679,981 | ||||||
Nucor Corp. | 13,658 | 726,469 | ||||||
1,406,450 | ||||||||
Multiline Retail — 0.3% | ||||||||
Dollar General Corp. | 9,900 | 2,081,970 | ||||||
Personal Products — 0.6% | ||||||||
Estee Lauder Cos., Inc. (The), Class A | 13,061 | 3,476,708 | ||||||
Pharmaceuticals — 1.2% | ||||||||
Bristol-Myers Squibb Co. | 44,264 | 2,745,696 | ||||||
Merck & Co., Inc. | 56,392 | 4,612,865 | ||||||
7,358,561 | ||||||||
Professional Services — 0.1% | ||||||||
CoStar Group, Inc.(1) | 898 | 830,003 |
6
Shares | Value | |||||||
Real Estate Management and Development — 0.2% | ||||||||
Redfin Corp.(1) | 14,077 | $ | 966,104 | |||||
Road and Rail — 0.9% | ||||||||
Landstar System, Inc. | 20,640 | 2,779,382 | ||||||
Old Dominion Freight Line, Inc. | 6,720 | 1,311,610 | ||||||
Uber Technologies, Inc.(1) | 30,385 | 1,549,635 | ||||||
5,640,627 | ||||||||
Semiconductors and Semiconductor Equipment — 10.0% | ||||||||
Advanced Micro Devices, Inc.(1) | 46,151 | 4,232,508 | ||||||
Applied Materials, Inc. | 51,832 | 4,473,102 | ||||||
Broadcom, Inc. | 5,372 | 2,352,130 | ||||||
Cohu, Inc. | 17,014 | 649,595 | ||||||
Enphase Energy, Inc.(1) | 5,704 | 1,000,881 | ||||||
Lam Research Corp. | 3,127 | 1,476,788 | ||||||
Lattice Semiconductor Corp.(1) | 66,350 | 3,040,157 | ||||||
Marvell Technology Group Ltd. | 38,306 | 1,821,067 | ||||||
MaxLinear, Inc.(1) | 46,421 | 1,772,818 | ||||||
Micron Technology, Inc.(1) | 45,713 | 3,436,703 | ||||||
Monolithic Power Systems, Inc. | 7,195 | 2,635,025 | ||||||
NVIDIA Corp. | 22,626 | 11,815,297 | ||||||
QUALCOMM, Inc. | 66,750 | 10,168,695 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 33,702 | 3,674,866 | ||||||
Teradyne, Inc. | 14,032 | 1,682,297 | ||||||
Texas Instruments, Inc. | 31,938 | 5,241,984 | ||||||
Universal Display Corp. | 4,034 | 927,013 | ||||||
60,400,926 | ||||||||
Software — 20.4% | ||||||||
8x8, Inc.(1) | 30,915 | 1,065,640 | ||||||
Adobe, Inc.(1) | 20,542 | 10,273,465 | ||||||
Atlassian Corp. plc, Class A(1) | 10,631 | 2,486,272 | ||||||
Autodesk, Inc.(1) | 26,458 | 8,078,686 | ||||||
Cadence Design Systems, Inc.(1) | 8,284 | 1,130,186 | ||||||
Cloudflare, Inc., Class A(1) | 17,495 | 1,329,445 | ||||||
Coupa Software, Inc.(1) | 2,230 | 755,769 | ||||||
Crowdstrike Holdings, Inc., Class A(1) | 12,416 | 2,629,957 | ||||||
DocuSign, Inc.(1) | 8,321 | 1,849,758 | ||||||
Fair Isaac Corp.(1) | 2,550 | 1,303,152 | ||||||
Fortinet, Inc.(1) | 4,715 | 700,319 | ||||||
Guidewire Software, Inc.(1) | 6,455 | 830,952 | ||||||
Intuit, Inc. | 11,067 | 4,203,800 | ||||||
Microsoft Corp. | 244,930 | 54,477,331 | ||||||
Palo Alto Networks, Inc.(1) | 9,624 | 3,420,273 | ||||||
Proofpoint, Inc.(1) | 13,833 | 1,886,960 | ||||||
PTC, Inc.(1) | 6,920 | 827,701 | ||||||
Rapid7, Inc.(1) | 15,547 | 1,401,717 | ||||||
salesforce.com, Inc.(1) | 10,413 | 2,317,205 | ||||||
ServiceNow, Inc.(1) | 19,592 | 10,784,025 | ||||||
Varonis Systems, Inc.(1) | 11,700 | 1,914,237 | ||||||
Workday, Inc., Class A(1) | 28,374 | 6,798,694 | ||||||
Zendesk, Inc.(1) | 15,884 | 2,273,318 | ||||||
Zscaler, Inc.(1) | 3,505 | 699,984 | ||||||
123,438,846 |
7
Shares | Value | |||||||
Specialty Retail — 2.9% | ||||||||
American Eagle Outfitters, Inc. | 34,439 | $ | 691,191 | |||||
Home Depot, Inc. (The) | 18,423 | 4,893,518 | ||||||
Lowe's Cos., Inc. | 25,965 | 4,167,642 | ||||||
Ross Stores, Inc. | 25,425 | 3,122,444 | ||||||
TJX Cos., Inc. (The) | 49,187 | 3,358,980 | ||||||
Ulta Beauty, Inc.(1) | 4,282 | 1,229,619 | ||||||
17,463,394 | ||||||||
Technology Hardware, Storage and Peripherals — 11.5% | ||||||||
Apple, Inc. | 503,175 | 66,766,290 | ||||||
Pure Storage, Inc., Class A(1) | 126,457 | 2,859,193 | ||||||
69,625,483 | ||||||||
Textiles, Apparel and Luxury Goods — 2.0% | ||||||||
Deckers Outdoor Corp.(1) | 3,713 | 1,064,814 | ||||||
lululemon athletica, Inc.(1) | 1,939 | 674,830 | ||||||
NIKE, Inc., Class B | 68,330 | 9,666,645 | ||||||
Steven Madden Ltd. | 19,332 | 682,807 | ||||||
12,089,096 | ||||||||
Trading Companies and Distributors — 0.3% | ||||||||
SiteOne Landscape Supply, Inc.(1) | 13,309 | 2,111,207 | ||||||
TOTAL COMMON STOCKS (Cost $405,296,732) | 605,069,417 | |||||||
TEMPORARY CASH INVESTMENTS — 0.5% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.75%, 11/30/23 - 11/15/43, valued at $1,574,121), in a joint trading account at 0.06%, dated 12/31/20, due 1/4/21 (Delivery value $1,542,022) | 1,542,012 | |||||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 1.25%, 5/15/50, valued at $1,964,561), at 0.06%, dated 12/31/20, due 1/4/21 (Delivery value $1,926,013) | 1,926,000 | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 1,537 | 1,537 | ||||||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $3,469,549) | 3,469,549 | |||||||
TOTAL INVESTMENT SECURITIES — 100.3% (Cost $408,766,281) | 608,538,966 | |||||||
OTHER ASSETS AND LIABILITIES — (0.3)% | (2,121,029) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 606,417,937 |
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
ADR | - | American Depositary Receipt |
(1)Non-income producing.
See Notes to Financial Statements.
8
Statement of Assets and Liabilities |
DECEMBER 31, 2020 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $408,766,281) | $ | 608,538,966 | |||
Dividends and interest receivable | 148,413 | ||||
608,687,379 | |||||
Liabilities | |||||
Disbursements in excess of demand deposit cash | 265 | ||||
Payable for capital shares redeemed | 2,204,792 | ||||
Accrued management fees | 64,385 | ||||
2,269,442 | |||||
Net Assets | $ | 606,417,937 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 409,267,477 | |||
Distributable earnings | 197,150,460 | ||||
$ | 606,417,937 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $78,817,043 | 5,340,221 | $14.76 | ||||||||
G Class, $0.01 Par Value | $527,600,894 | 35,520,318 | $14.85 |
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $3,130) | $ | 2,016,396 | |||
Interest | 2,436 | ||||
2,018,832 | |||||
Expenses: | |||||
Management fees | 2,285,398 | ||||
Directors' fees and expenses | 19,390 | ||||
Other expenses | 1,803 | ||||
2,306,591 | |||||
Fees waived(1) | (1,898,120) | ||||
408,471 | |||||
Net investment income (loss) | 1,610,361 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | 15,889,726 | ||||
Futures contract transactions | 312,425 | ||||
16,202,151 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 75,878,630 | ||||
Futures contracts | (17,398) | ||||
75,861,232 | |||||
Net realized and unrealized gain (loss) | 92,063,383 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 93,673,744 |
(1)Amount consists of $3,897 and $1,894,223 for Investor Class and G Class, respectively.
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED) AND YEAR ENDED JUNE 30, 2020 | ||||||||
Increase (Decrease) in Net Assets | December 31, 2020 | June 30, 2020 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 1,610,361 | $ | 2,915,331 | ||||
Net realized gain (loss) | 16,202,151 | 85,021,489 | ||||||
Change in net unrealized appreciation (depreciation) | 75,861,232 | (2,258,531) | ||||||
Net increase (decrease) in net assets resulting from operations | 93,673,744 | 85,678,289 | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (9,855,826) | (3,798,350) | ||||||
G Class | (68,013,891) | (20,219,351) | ||||||
Decrease in net assets from distributions | (77,869,717) | (24,017,701) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 219,531,161 | (173,717,866) | ||||||
Net increase (decrease) in net assets | 235,335,188 | (112,057,278) | ||||||
Net Assets | ||||||||
Beginning of period | 371,082,749 | 483,140,027 | ||||||
End of period | $ | 606,417,937 | $ | 371,082,749 |
See Notes to Financial Statements.
11
Notes to Financial Statements |
DECEMBER 31, 2020 (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. NT Disciplined Growth Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek long-term capital growth. The fund is not permitted to invest in securities issued by companies assigned the Global Industry Classification Standard or the Bloomberg Industry Classification Standard for the tobacco industry. The fund offers the Investor Class and G Class.
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 (NAV) 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.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price.
Open-end management investment companies are valued at the reported NAV 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.
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 NAV 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. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
12
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.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
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, if any, are generally declared and paid semiannually. Distributions from net realized gains, if any, are generally declared and paid annually. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
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.
13
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., and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 64% 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 ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses. 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, which may be provided indirectly through another American Century Investments mutual fund. 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 fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds. During the period ended December 31, 2020, the investment advisor agreed to waive 0.01% of the fund's management fee. The investment advisor expects this waiver to continue until July 31, 2021 and cannot terminate it prior to such date without the approval of the Board of Directors. The investment advisor agreed to waive the G Class’s management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors.
The Investment Category Fee range, the Complex Fee range and the effective annual management fee before and after waiver for each class for the period ended December 31, 2020 are as follows:
Investment Category Fee Range | Complex Fee Range | Effective Annual Management Fee | ||||||||||||
Before Waiver | After Waiver | |||||||||||||
Investor Class | 0.6880% to 0.8700% | 0.2500% to 0.3100% | 1.00% | 0.99% | ||||||||||
G Class | 0.0500% to 0.1100% | 0.80% | 0.00% |
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.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $12,165,578 and $12,227,060, respectively. The effect of interfund transactions on the Statement of Operations was $438,080 in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments and in kind transactions, for the period ended December 31, 2020 were $501,942,968 and $540,674,902, respectively.
On July 29, 2020, the fund received investment securities valued at $188,106,507 from a purchase in kind from other products managed by the fund's investment advisor. A purchase in kind occurs when a fund receives securities into its portfolio in lieu of cash as payment from a purchasing shareholder.
14
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended December 31, 2020 | Year ended June 30, 2020 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 80,000,000 | 80,000,000 | ||||||||||||
Sold | — | — | 1,222,209 | $ | 15,548,929 | |||||||||
Issued in reinvestment of distributions | 672,753 | $ | 9,855,826 | 300,265 | 3,798,350 | |||||||||
Redeemed | (475,539) | (7,480,375) | (5,703,916) | (73,591,791) | ||||||||||
197,214 | 2,375,451 | (4,181,442) | (54,244,512) | |||||||||||
G Class/Shares Authorized | 550,000,000 | 330,000,000 | ||||||||||||
Sold | 14,187,497 | 213,711,219 | 6,451,142 | 82,271,277 | ||||||||||
Issued in reinvestment of distributions | 4,614,240 | 68,013,891 | 1,588,461 | 20,219,351 | ||||||||||
Redeemed | (4,141,785) | (64,569,400) | (17,105,855) | (221,963,982) | ||||||||||
14,659,952 | 217,155,710 | (9,066,252) | (119,473,354) | |||||||||||
Net increase (decrease) | 14,857,166 | $ | 219,531,161 | (13,247,694) | $ | (173,717,866) |
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 | |||||||||||
Common Stocks | $ | 605,069,417 | — | — | |||||||
Temporary Cash Investments | 1,537 | $ | 3,468,012 | — | |||||||
$ | 605,070,954 | $ | 3,468,012 | — |
15
7. Derivative Instruments
Equity Price Risk — The fund is subject to equity price risk in the normal course of pursuing its investment objectives. A fund may enter into futures contracts based on an equity index in order to manage its exposure to changes in market conditions. 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 is required to deposit either cash or securities in an amount equal to a certain percentage of the contract value (initial margin). 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 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. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. The fund's average notional exposure to equity price risk derivative instruments held during the period was $6,503,353 futures contracts purchased.
At period end, the fund did not have any derivative instruments disclosed on the Statement of Assets and Liabilities. For the six months ended December 31, 2020, the effect of equity price risk derivative instruments on the Statement of Operations was $312,425 in net realized gain (loss) on futures contract transactions and $(17,398) in change in net unrealized appreciation (depreciation) on futures contracts.
8. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
The fund is owned by a relatively small number of shareholders, and in the event such shareholders redeem, the ongoing operations of the fund may be at risk.
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 | $ | 412,264,051 | |||
Gross tax appreciation of investments | $ | 198,311,455 | |||
Gross tax depreciation of investments | (2,036,540) | ||||
Net tax appreciation (depreciation) of investments | $ | 196,274,915 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
16
Financial Highlights |
For a Share Outstanding Throughout the Years Ended June 30 (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 | |||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $14.23 | (0.02) | 2.66 | 2.64 | — | (2.11) | (2.11) | $14.76 | 18.68% | 1.00%(4) | 1.01%(4) | (0.27)%(4) | (0.28)%(4) | 92% | $78,817 | ||||||||||||||||||||||||||||||||
2020 | $12.29 | (0.01) | 2.64 | 2.63 | — | (0.69) | (0.69) | $14.23 | 22.14% | 1.01% | 1.02% | (0.09)% | (0.10)% | 137% | $73,179 | ||||||||||||||||||||||||||||||||
2019 | $13.13 | 0.03 | 0.65 | 0.68 | (0.04) | (1.48) | (1.52) | $12.29 | 6.76% | 1.02% | 1.02% | 0.23% | 0.23% | 115% | $114,600 | ||||||||||||||||||||||||||||||||
2018 | $11.41 | 0.03 | 2.10 | 2.13 | (0.03) | (0.38) | (0.41) | $13.13 | 18.85% | 1.01% | 1.01% | 0.22% | 0.22% | 105% | $120,907 | ||||||||||||||||||||||||||||||||
2017 | $9.49 | 0.05 | 1.92 | 1.97 | (0.05) | — | (0.05) | $11.41 | 20.83% | 1.02% | 1.02% | 0.51% | 0.51% | 131% | $106,476 | ||||||||||||||||||||||||||||||||
2016 | $9.77 | 0.06 | (0.27) | (0.21) | (0.07) | — | (0.07) | $9.49 | (2.18)% | 1.02% | 1.02% | 0.62% | 0.62% | 118% | $92,560 | ||||||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $14.28 | 0.06 | 2.67 | 2.73 | (0.05) | (2.11) | (2.16) | $14.85 | 19.24% | 0.01%(4) | 0.81%(4) | 0.72%(4) | (0.08)%(4) | 92% | $527,601 | ||||||||||||||||||||||||||||||||
2020 | $12.31 | 0.12 | 2.66 | 2.78 | (0.12) | (0.69) | (0.81) | $14.28 | 23.39% | 0.01% | 0.82% | 0.91% | 0.10% | 137% | $297,903 | ||||||||||||||||||||||||||||||||
2019 | $13.14 | 0.15 | 0.65 | 0.80 | (0.15) | (1.48) | (1.63) | $12.31 | 7.80% | 0.01% | 0.82% | 1.24% | 0.43% | 115% | $368,540 | ||||||||||||||||||||||||||||||||
2018 | $11.41 | 0.15 | 2.10 | 2.25 | (0.14) | (0.38) | (0.52) | $13.14 | 19.98% | 0.07% | 0.81% | 1.16% | 0.42% | 105% | $430,102 | ||||||||||||||||||||||||||||||||
2017 | $9.49 | 0.08 | 1.92 | 2.00 | (0.08) | — | (0.08) | $11.41 | 21.08% | 0.82% | 0.82% | 0.71% | 0.71% | 131% | $449,768 | ||||||||||||||||||||||||||||||||
2016 | $9.78 | 0.08 | (0.28) | (0.20) | (0.09) | — | (0.09) | $9.49 | (2.03)% | 0.82% | 0.82% | 0.82% | 0.82% | 118% | $397,955 |
Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized.
(3)Six months ended December 31, 2020 (unaudited).
(4)Annualized.
See Notes to Financial Statements.
Additional Information |
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 American Century Investments’ website at americancentury.com/proxy. 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 americancentury.com/proxy. 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 as an exhibit to its reports on Form N-PORT. The fund’s 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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20
Notes |
21
Notes |
22
Notes |
23
Notes |
24
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 | |||||||
American Century Quantitative Equity Funds, 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. | ||||||||
©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-91465 2102 |
Semiannual Report | |||||
December 31, 2020 | |||||
NT Equity Growth Fund | |||||
G Class (ACLEX) |
Table of Contents |
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Additional Information |
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.
Fund Characteristics |
DECEMBER 31, 2020 | |||||
Top Ten Holdings | % of net assets | ||||
Apple, Inc. | 6.4% | ||||
Microsoft Corp. | 4.2% | ||||
Amazon.com, Inc. | 3.8% | ||||
Alphabet, Inc., Class A | 1.9% | ||||
Bristol-Myers Squibb Co. | 1.4% | ||||
Facebook, Inc., Class A | 1.4% | ||||
Johnson & Johnson | 1.3% | ||||
Adobe, Inc. | 1.3% | ||||
Berkshire Hathaway, Inc., Class B | 1.2% | ||||
Verizon Communications, Inc. | 1.2% | ||||
Top Five Industries | % of net assets | ||||
Software | 11.5% | ||||
Technology Hardware, Storage and Peripherals | 7.3% | ||||
Semiconductors and Semiconductor Equipment | 7.0% | ||||
Internet and Direct Marketing Retail | 4.6% | ||||
Health Care Providers and Services | 4.2% | ||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 98.9% | ||||
Temporary Cash Investments | 1.1% | ||||
Other Assets and Liabilities | —* |
*Category is less than 0.05% of total net assets.
2
Shareholder Fee Example |
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 July 1, 2020 to December 31, 2020.
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.
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 7/1/20 | Ending Account Value 12/31/20 | Expenses Paid During Period(1) 7/1/20 - 12/31/20 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
G Class | $1,000 | $1,178.00 | $0.05 | 0.01% | ||||||||||
Hypothetical | ||||||||||||||
G Class | $1,000 | $1,025.16 | $0.05 | 0.01% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
3
Schedule of Investments |
DECEMBER 31, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 98.9% | ||||||||
Aerospace and Defense — 0.4% | ||||||||
Raytheon Technologies Corp. | 27,585 | $ | 1,972,603 | |||||
Textron, Inc. | 55,095 | 2,662,742 | ||||||
4,635,345 | ||||||||
Auto Components — 1.2% | ||||||||
Adient plc(1) | 88,648 | 3,082,291 | ||||||
BorgWarner, Inc. | 71,947 | 2,780,032 | ||||||
Lear Corp. | 28,226 | 4,488,781 | ||||||
Magna International, Inc. | 41,999 | 2,973,529 | ||||||
13,324,633 | ||||||||
Automobiles — 0.5% | ||||||||
General Motors Co. | 24,064 | 1,002,025 | ||||||
Tesla, Inc.(1) | 5,520 | 3,895,298 | ||||||
4,897,323 | ||||||||
Banks — 4.0% | ||||||||
Bank of America Corp. | 327,477 | 9,925,828 | ||||||
Citigroup, Inc. | 130,597 | 8,052,611 | ||||||
Citizens Financial Group, Inc. | 61,004 | 2,181,503 | ||||||
Comerica, Inc. | 46,797 | 2,614,080 | ||||||
East West Bancorp, Inc. | 52,972 | 2,686,210 | ||||||
Fifth Third Bancorp | 178,454 | 4,919,977 | ||||||
JPMorgan Chase & Co. | 40,583 | 5,156,882 | ||||||
KeyCorp | 219,038 | 3,594,414 | ||||||
People's United Financial, Inc. | 185,580 | 2,399,549 | ||||||
Regions Financial Corp. | 128,980 | 2,079,158 | ||||||
43,610,212 | ||||||||
Beverages — 0.2% | ||||||||
PepsiCo, Inc. | 11,791 | 1,748,605 | ||||||
Biotechnology — 1.4% | ||||||||
AbbVie, Inc. | 78,805 | 8,443,956 | ||||||
Alexion Pharmaceuticals, Inc.(1) | 17,242 | 2,693,890 | ||||||
Amgen, Inc. | 6,574 | 1,511,494 | ||||||
Vertex Pharmaceuticals, Inc.(1) | 10,000 | 2,363,400 | ||||||
15,012,740 | ||||||||
Building Products — 1.4% | ||||||||
Masco Corp. | 218,771 | 12,017,091 | ||||||
Owens Corning | 36,853 | 2,791,983 | ||||||
14,809,074 | ||||||||
Capital Markets — 2.5% | ||||||||
Brookfield Asset Management, Inc., Class A | 107,009 | 4,416,261 | ||||||
Moody's Corp. | 14,720 | 4,272,333 | ||||||
Morgan Stanley | 111,511 | 7,641,849 | ||||||
MSCI, Inc. | 5,655 | 2,525,127 | ||||||
State Street Corp. | 107,675 | 7,836,587 | ||||||
26,692,157 | ||||||||
Chemicals — 2.9% | ||||||||
Air Products and Chemicals, Inc. | 3,582 | 978,674 |
4
Shares | Value | |||||||
Dow, Inc. | 34,859 | $ | 1,934,674 | |||||
Eastman Chemical Co. | 19,934 | 1,998,982 | ||||||
Ecolab, Inc. | 36,588 | 7,916,180 | ||||||
Huntsman Corp. | 171,665 | 4,315,658 | ||||||
Linde plc | 12,155 | 3,202,964 | ||||||
Mosaic Co. (The) | 199,816 | 4,597,766 | ||||||
Sherwin-Williams Co. (The) | 9,533 | 7,005,897 | ||||||
31,950,795 | ||||||||
Commercial Services and Supplies — 0.5% | ||||||||
Waste Management, Inc. | 45,160 | 5,325,719 | ||||||
Communications Equipment — 1.3% | ||||||||
Arista Networks, Inc.(1) | 9,820 | 2,853,397 | ||||||
Cisco Systems, Inc. | 142,774 | 6,389,137 | ||||||
Lumentum Holdings, Inc.(1) | 23,284 | 2,207,323 | ||||||
Motorola Solutions, Inc. | 18,480 | 3,142,709 | ||||||
14,592,566 | ||||||||
Construction and Engineering — 0.4% | ||||||||
Quanta Services, Inc. | 56,257 | 4,051,629 | ||||||
Consumer Finance — 0.4% | ||||||||
Synchrony Financial | 133,054 | 4,618,304 | ||||||
Containers and Packaging — 0.6% | ||||||||
International Paper Co. | 95,437 | 4,745,128 | ||||||
Packaging Corp. of America | 16,128 | 2,224,212 | ||||||
6,969,340 | ||||||||
Distributors — 0.2% | ||||||||
LKQ Corp.(1) | 69,033 | 2,432,723 | ||||||
Diversified Financial Services — 1.2% | ||||||||
Berkshire Hathaway, Inc., Class B(1) | 57,949 | 13,436,635 | ||||||
Diversified Telecommunication Services — 2.3% | ||||||||
AT&T, Inc. | 396,321 | 11,398,192 | ||||||
Verizon Communications, Inc. | 223,985 | 13,159,119 | ||||||
24,557,311 | ||||||||
Electric Utilities — 0.9% | ||||||||
NextEra Energy, Inc. | 25,338 | 1,954,827 | ||||||
NRG Energy, Inc. | 97,622 | 3,665,706 | ||||||
PPL Corp. | 164,915 | 4,650,603 | ||||||
10,271,136 | ||||||||
Electrical Equipment — 1.6% | ||||||||
Emerson Electric Co. | 147,214 | 11,831,589 | ||||||
Hubbell, Inc. | 36,801 | 5,770,029 | ||||||
17,601,618 | ||||||||
Electronic Equipment, Instruments and Components — 1.0% | ||||||||
Jabil, Inc. | 91,096 | 3,874,313 | ||||||
SYNNEX Corp. | 38,344 | 3,122,735 | ||||||
Zebra Technologies Corp., Class A(1) | 9,460 | 3,635,762 | ||||||
10,632,810 | ||||||||
Entertainment — 1.7% | ||||||||
Activision Blizzard, Inc. | 27,333 | 2,537,869 | ||||||
Electronic Arts, Inc. | 27,603 | 3,963,791 | ||||||
Madison Square Garden Sports Corp., Class A(1) | 25,123 | 4,625,144 | ||||||
Netflix, Inc.(1) | 4,075 | 2,203,475 | ||||||
Walt Disney Co. (The)(1) | 29,091 | 5,270,707 | ||||||
18,600,986 |
5
Shares | Value | |||||||
Equity Real Estate Investment Trusts (REITs) — 1.1% | ||||||||
Iron Mountain, Inc. | 77,659 | $ | 2,289,387 | |||||
Lamar Advertising Co., Class A | 21,581 | 1,795,971 | ||||||
Spirit Realty Capital, Inc. | 112,528 | 4,520,250 | ||||||
Weyerhaeuser Co. | 97,073 | 3,254,858 | ||||||
11,860,466 | ||||||||
Food and Staples Retailing — 0.3% | ||||||||
Kroger Co. (The) | 103,785 | 3,296,212 | ||||||
Food Products — 0.7% | ||||||||
Campbell Soup Co. | 33,745 | 1,631,571 | ||||||
Hormel Foods Corp. | 78,875 | 3,676,364 | ||||||
J.M. Smucker Co. (The) | 16,032 | 1,853,299 | ||||||
7,161,234 | ||||||||
Gas Utilities — 0.4% | ||||||||
UGI Corp. | 119,018 | 4,160,869 | ||||||
Health Care Equipment and Supplies — 2.3% | ||||||||
Danaher Corp. | 48,275 | 10,723,808 | ||||||
DexCom, Inc.(1) | 2,779 | 1,027,452 | ||||||
Medtronic plc | 79,334 | 9,293,185 | ||||||
Zimmer Biomet Holdings, Inc. | 27,545 | 4,244,409 | ||||||
25,288,854 | ||||||||
Health Care Providers and Services — 4.2% | ||||||||
AmerisourceBergen Corp. | 33,154 | 3,241,135 | ||||||
Anthem, Inc. | 18,561 | 5,959,751 | ||||||
Cardinal Health, Inc. | 30,166 | 1,615,691 | ||||||
CVS Health Corp. | 88,166 | 6,021,738 | ||||||
HCA Healthcare, Inc. | 11,973 | 1,969,080 | ||||||
Henry Schein, Inc.(1) | 81,159 | 5,426,291 | ||||||
Humana, Inc. | 21,042 | 8,632,901 | ||||||
McKesson Corp. | 28,628 | 4,978,982 | ||||||
UnitedHealth Group, Inc. | 22,866 | 8,018,649 | ||||||
45,864,218 | ||||||||
Hotels, Restaurants and Leisure — 3.5% | ||||||||
Aramark | 117,588 | 4,524,786 | ||||||
Boyd Gaming Corp.(1) | 105,494 | 4,527,803 | ||||||
Churchill Downs, Inc. | 22,942 | 4,468,872 | ||||||
Darden Restaurants, Inc. | 40,052 | 4,770,994 | ||||||
Texas Roadhouse, Inc. | 57,672 | 4,507,644 | ||||||
Vail Resorts, Inc. | 15,516 | 4,328,343 | ||||||
Yum! Brands, Inc. | 95,427 | 10,359,555 | ||||||
37,487,997 | ||||||||
Household Durables — 0.3% | ||||||||
Mohawk Industries, Inc.(1) | 20,555 | 2,897,227 | ||||||
Household Products — 1.5% | ||||||||
Clorox Co. (The) | 18,514 | 3,738,347 | ||||||
Colgate-Palmolive Co. | 149,465 | 12,780,752 | ||||||
16,519,099 | ||||||||
Industrial Conglomerates — 1.7% | ||||||||
3M Co. | 52,136 | 9,112,851 | ||||||
Honeywell International, Inc. | 45,388 | 9,654,028 | ||||||
18,766,879 |
6
Shares | Value | |||||||
Insurance — 1.2% | ||||||||
Athene Holding Ltd., Class A(1) | 44,982 | $ | 1,940,524 | |||||
Fidelity National Financial, Inc. | 43,904 | 1,716,207 | ||||||
Marsh & McLennan Cos., Inc. | 40,259 | 4,710,303 | ||||||
Prudential Financial, Inc. | 60,004 | 4,684,512 | ||||||
13,051,546 | ||||||||
Interactive Media and Services — 3.3% | ||||||||
Alphabet, Inc., Class A(1) | 11,965 | 20,970,337 | ||||||
Facebook, Inc., Class A(1) | 53,810 | 14,698,740 | ||||||
35,669,077 | ||||||||
Internet and Direct Marketing Retail — 4.6% | ||||||||
Amazon.com, Inc.(1) | 12,670 | 41,265,303 | ||||||
Booking Holdings, Inc.(1) | 2,143 | 4,773,039 | ||||||
eBay, Inc. | 77,811 | 3,910,003 | ||||||
49,948,345 | ||||||||
IT Services — 2.3% | ||||||||
Cognizant Technology Solutions Corp., Class A | 34,756 | 2,848,254 | ||||||
International Business Machines Corp. | 64,537 | 8,123,918 | ||||||
Mastercard, Inc., Class A | 11,301 | 4,033,779 | ||||||
PayPal Holdings, Inc.(1) | 7,236 | 1,694,671 | ||||||
Visa, Inc., Class A | 28,918 | 6,325,234 | ||||||
WEX, Inc.(1) | 9,032 | 1,838,283 | ||||||
24,864,139 | ||||||||
Life Sciences Tools and Services — 1.1% | ||||||||
Agilent Technologies, Inc. | 84,742 | 10,041,080 | ||||||
Illumina, Inc.(1) | 4,609 | 1,705,330 | ||||||
11,746,410 | ||||||||
Machinery — 1.1% | ||||||||
Cummins, Inc. | 10,613 | 2,410,212 | ||||||
Snap-on, Inc. | 43,835 | 7,501,922 | ||||||
Westinghouse Air Brake Technologies Corp. | 22,864 | 1,673,645 | ||||||
11,585,779 | ||||||||
Media — 1.3% | ||||||||
Comcast Corp., Class A | 108,428 | 5,681,627 | ||||||
Fox Corp., Class A | 95,120 | 2,769,895 | ||||||
Interpublic Group of Cos., Inc. (The) | 62,087 | 1,460,286 | ||||||
Liberty Broadband Corp., Class C(1) | 27,514 | 4,357,392 | ||||||
14,269,200 | ||||||||
Metals and Mining — 1.4% | ||||||||
Cleveland-Cliffs, Inc. | 342,935 | 4,993,133 | ||||||
Freeport-McMoRan, Inc. | 182,750 | 4,755,155 | ||||||
Reliance Steel & Aluminum Co. | 18,516 | 2,217,291 | ||||||
Steel Dynamics, Inc. | 73,333 | 2,703,788 | ||||||
14,669,367 | ||||||||
Multi-Utilities — 1.0% | ||||||||
CenterPoint Energy, Inc. | 198,391 | 4,293,181 | ||||||
Dominion Energy, Inc. | 80,027 | 6,018,031 | ||||||
10,311,212 | ||||||||
Multiline Retail — 0.8% | ||||||||
Dollar Tree, Inc.(1) | 12,815 | 1,384,532 | ||||||
Target Corp. | 43,964 | 7,760,965 | ||||||
9,145,497 |
7
Shares | Value | |||||||
Oil, Gas and Consumable Fuels — 2.3% | ||||||||
Chevron Corp. | 48,150 | $ | 4,066,267 | |||||
Exxon Mobil Corp. | 139,858 | 5,764,947 | ||||||
New Fortress Energy, Inc. | 68,179 | 3,653,713 | ||||||
Phillips 66 | 66,358 | 4,641,079 | ||||||
Williams Cos., Inc. (The) | 339,069 | 6,798,333 | ||||||
24,924,339 | ||||||||
Personal Products — 0.2% | ||||||||
Herbalife Nutrition Ltd.(1) | 45,810 | 2,201,170 | ||||||
Pharmaceuticals — 3.8% | ||||||||
Bristol-Myers Squibb Co. | 239,921 | 14,882,299 | ||||||
Johnson & Johnson | 89,365 | 14,064,264 | ||||||
Merck & Co., Inc. | 125,185 | 10,240,133 | ||||||
Pfizer, Inc. | 69,723 | 2,566,504 | ||||||
41,753,200 | ||||||||
Road and Rail — 1.0% | ||||||||
CSX Corp. | 19,200 | 1,742,400 | ||||||
J.B. Hunt Transport Services, Inc. | 19,003 | 2,596,760 | ||||||
Kansas City Southern | 32,544 | 6,643,207 | ||||||
10,982,367 | ||||||||
Semiconductors and Semiconductor Equipment — 7.0% | ||||||||
Applied Materials, Inc. | 134,745 | 11,628,493 | ||||||
Broadcom, Inc. | 27,119 | 11,874,054 | ||||||
Intel Corp. | 37,968 | 1,891,566 | ||||||
KLA Corp. | 22,900 | 5,929,039 | ||||||
Lam Research Corp. | 16,282 | 7,689,500 | ||||||
Micron Technology, Inc.(1) | 61,100 | 4,593,498 | ||||||
NVIDIA Corp. | 7,938 | 4,145,224 | ||||||
NXP Semiconductors NV | 20,947 | 3,330,782 | ||||||
Qorvo, Inc.(1) | 12,884 | 2,142,223 | ||||||
QUALCOMM, Inc. | 86,316 | 13,149,379 | ||||||
Texas Instruments, Inc. | 56,866 | 9,333,417 | ||||||
75,707,175 | ||||||||
Software — 11.5% | ||||||||
Adobe, Inc.(1) | 27,674 | 13,840,321 | ||||||
Autodesk, Inc.(1) | 22,583 | 6,895,493 | ||||||
Cadence Design Systems, Inc.(1) | 17,992 | 2,454,649 | ||||||
Citrix Systems, Inc. | 23,976 | 3,119,278 | ||||||
Cloudflare, Inc., Class A(1) | 53,523 | 4,067,213 | ||||||
Fortinet, Inc.(1) | 13,142 | 1,951,981 | ||||||
Intuit, Inc. | 13,692 | 5,200,906 | ||||||
Microsoft Corp. | 204,105 | 45,397,034 | ||||||
NortonLifeLock, Inc. | 163,618 | 3,399,982 | ||||||
Oracle Corp. (New York) | 128,143 | 8,289,571 | ||||||
Palo Alto Networks, Inc.(1) | 7,127 | 2,532,864 | ||||||
Pegasystems, Inc. | 35,678 | 4,754,450 | ||||||
PTC, Inc.(1) | 29,765 | 3,560,192 | ||||||
salesforce.com, Inc.(1) | 36,205 | 8,056,699 | ||||||
ServiceNow, Inc.(1) | 13,598 | 7,484,747 | ||||||
Varonis Systems, Inc.(1) | 24,786 | 4,055,237 | ||||||
125,060,617 |
8
Shares | Value | |||||||
Specialty Retail — 3.8% | ||||||||
AutoZone, Inc.(1) | 2,648 | $ | 3,139,045 | |||||
Best Buy Co., Inc. | 17,436 | 1,739,938 | ||||||
Burlington Stores, Inc.(1) | 19,165 | 5,012,606 | ||||||
Dick's Sporting Goods, Inc. | 50,160 | 2,819,494 | ||||||
Home Depot, Inc. (The) | 39,155 | 10,400,351 | ||||||
Lowe's Cos., Inc. | 46,343 | 7,438,515 | ||||||
O'Reilly Automotive, Inc.(1) | 8,988 | 4,067,699 | ||||||
Tractor Supply Co. | 26,648 | 3,746,176 | ||||||
Ulta Beauty, Inc.(1) | 9,041 | 2,596,213 | ||||||
40,960,037 | ||||||||
Technology Hardware, Storage and Peripherals — 7.3% | ||||||||
Apple, Inc. | 525,960 | 69,789,632 | ||||||
NetApp, Inc. | 73,074 | 4,840,422 | ||||||
Western Digital Corp. | 85,309 | 4,725,266 | ||||||
79,355,320 | ||||||||
Textiles, Apparel and Luxury Goods — 1.3% | ||||||||
Levi Strauss & Co., Class A | 111,004 | 2,228,960 | ||||||
Ralph Lauren Corp. | 46,031 | 4,775,256 | ||||||
Tapestry, Inc. | 243,809 | 7,577,584 | ||||||
14,581,800 | ||||||||
TOTAL COMMON STOCKS (Cost $836,917,964) | 1,073,861,313 | |||||||
TEMPORARY CASH INVESTMENTS — 1.1% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.75%, 11/30/23 - 11/15/43, valued at $5,521,693), in a joint trading account at 0.06%, dated 12/31/20, due 1/4/21 (Delivery value $5,409,096) | 5,409,060 | |||||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 0.125%, 10/15/23, valued at $6,896,236), at 0.06%, dated 12/31/20, due 1/4/21 (Delivery value $6,761,045) | 6,761,000 | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 5,391 | 5,391 | ||||||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $12,175,451) | 12,175,451 | |||||||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $849,093,415) | 1,086,036,764 | |||||||
OTHER ASSETS AND LIABILITIES† | 483,827 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 1,086,520,591 |
FUTURES CONTRACTS PURCHASED | ||||||||||||||
Reference Entity | Contracts | Expiration Date | Notional Amount | Unrealized Appreciation (Depreciation)^ | ||||||||||
S&P 500 E-Mini | 41 | March 2021 | $ | 7,685,040 | $ | 186,160 |
^Amount represents value and unrealized appreciation (depreciation).
NOTES TO SCHEDULE OF INVESTMENTS |
†Category is less than 0.05% of total net assets.
(1)Non-income producing.
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
DECEMBER 31, 2020 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $849,093,415) | $ | 1,086,036,764 | |||
Deposits with broker for futures contracts | 451,000 | ||||
Receivable for capital shares sold | 138,194 | ||||
Receivable for variation margin on futures contracts | 50,430 | ||||
Dividends and interest receivable | 1,008,971 | ||||
1,087,685,359 | |||||
Liabilities | |||||
Payable for capital shares redeemed | 1,164,768 | ||||
Net Assets | $ | 1,086,520,591 | |||
G Class Capital Shares, $0.01 Par Value | |||||
Shares authorized | 1,300,000,000 | ||||
Shares outstanding | 96,714,890 | ||||
Net Asset Value Per Share | $ | 11.23 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 822,767,038 | |||
Distributable earnings | 263,753,553 | ||||
$ | 1,086,520,591 |
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $2,357) | $ | 8,259,014 | |||
Interest | 4,617 | ||||
8,263,631 | |||||
Expenses: | |||||
Management fees | 2,183,504 | ||||
Directors' fees and expenses | 33,720 | ||||
Other expenses | 2,416 | ||||
2,219,640 | |||||
Fees waived | (2,183,504) | ||||
36,136 | |||||
Net investment income (loss) | 8,227,495 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | 31,454,045 | ||||
Futures contract transactions | 3,494,454 | ||||
34,948,499 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 107,654,106 | ||||
Futures contracts | 76,460 | ||||
107,730,566 | |||||
Net realized and unrealized gain (loss) | 142,679,065 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 150,906,560 |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED) AND YEAR ENDED JUNE 30, 2020 | ||||||||
Increase (Decrease) in Net Assets | December 31, 2020 | June 30, 2020 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 8,227,495 | $ | 15,555,257 | ||||
Net realized gain (loss) | 34,948,499 | 295,927,221 | ||||||
Change in net unrealized appreciation (depreciation) | 107,730,566 | (228,946,254) | ||||||
Net increase (decrease) in net assets resulting from operations | 150,906,560 | 82,536,224 | ||||||
Distributions to Shareholders | ||||||||
From earnings | (115,879,682) | (159,452,313) | ||||||
Capital Share Transactions | ||||||||
Proceeds from shares sold | 448,805,128 | 30,112,019 | ||||||
Proceeds from reinvestment of distributions | 115,879,682 | 159,452,313 | ||||||
Payments for shares redeemed | (89,180,332) | (958,021,793) | ||||||
Net increase (decrease) in net assets from capital share transactions | 475,504,478 | (768,457,461) | ||||||
Net increase (decrease) in net assets | 510,531,356 | (845,373,550) | ||||||
Net Assets | ||||||||
Beginning of period | 575,989,235 | 1,421,362,785 | ||||||
End of period | $ | 1,086,520,591 | $ | 575,989,235 | ||||
Transactions in Shares of the Fund | ||||||||
Sold | 40,037,828 | 2,954,313 | ||||||
Issued in reinvestment of distributions | 10,453,021 | 14,469,417 | ||||||
Redeemed | (7,692,137) | (72,058,057) | ||||||
Net increase (decrease) in shares of the fund | 42,798,712 | (54,634,327) |
See Notes to Financial Statements.
12
Notes to Financial Statements |
DECEMBER 31, 2020 (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. NT Equity Growth Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek long-term capital growth. The fund is not permitted to invest in securities issued by companies assigned the Global Industry Classification Standard or the Bloomberg Industry Classification Standard for the tobacco industry. The fund offers the G Class.
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 (NAV) 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.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price.
Open-end management investment companies are valued at the reported NAV 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.
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 NAV 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. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
13
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.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
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.
Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid quarterly. Distributions from net realized gains, if any, are generally declared and paid annually. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
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., and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 56% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
14
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). The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses. The fee is computed and accrued daily based on the daily net assets of the fund and paid monthly in arrears. The fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds. The rates for the Investment Category Fee range from 0.3380% to 0.5200%. The rates for the Complex Fee range from 0.0500% to 0.1100%. The investment advisor agreed to waive the fund's management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors. The effective annual management fee for the period ended December 31, 2020 was 0.45% before waiver and 0.00% after waiver.
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.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $17,859,461 and $23,498,372, respectively. The effect of interfund transactions on the Statement of Operations was $103,142 in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments and in kind transactions, for the period ended December 31, 2020 were $950,655,233 and $985,035,813, respectively.
On July 29, 2020, the fund received investment securities valued at $401,649,235 from a purchase in kind from other products managed by the fund's investment advisor. A purchase in kind occurs when a fund receives securities into its portfolio in lieu of cash as payment from a purchasing shareholder.
5. 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.
15
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 | |||||||||||
Common Stocks | $ | 1,073,861,313 | — | — | |||||||
Temporary Cash Investments | 5,391 | $ | 12,170,060 | — | |||||||
$ | 1,073,866,704 | $ | 12,170,060 | — | |||||||
Other Financial Instruments | |||||||||||
Futures Contracts | $ | 186,160 | — | — |
6. Derivative Instruments
Equity Price Risk — The fund is subject to equity price risk in the normal course of pursuing its investment objectives. A fund may enter into futures contracts based on an equity index in order to manage its exposure to changes in market conditions. 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 is required to deposit either cash or securities in an amount equal to a certain percentage of the contract value (initial margin). 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 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. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. The fund's average notional exposure to equity price risk derivative instruments held during the period was $12,616,969 futures contracts purchased.
The value of equity price risk derivative instruments as of December 31, 2020, is disclosed on the Statement of Assets and Liabilities as an asset of $50,430 in receivable for variation margin on futures contracts*. For the six months ended December 31, 2020, the effect of equity price risk derivative instruments on the Statement of Operations was $3,494,454 in net realized gain (loss) on futures contract transactions and $76,460 in change in net unrealized appreciation (depreciation) on futures contracts.
* Included in the unrealized appreciation (depreciation) on futures contracts as reported in the Schedule of Investments.
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
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.
The fund is owned by a relatively small number of shareholders, and in the event such shareholders redeem, the ongoing operations of the fund may be at risk.
16
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 854,039,364 | |||
Gross tax appreciation of investments | $ | 236,166,535 | |||
Gross tax depreciation of investments | (4,169,135) | ||||
Net tax appreciation (depreciation) of investments | $ | 231,997,400 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
17
Financial Highlights |
For a Share Outstanding Throughout the Years Ended June 30 (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) | |||||||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $10.68 | 0.10 | 1.78 | 1.88 | (0.09) | (1.24) | (1.33) | $11.23 | 17.80% | 0.01%(4) | 0.46%(4) | 1.70%(4) | 1.25%(4) | 101% | $1,086,521 | ||||||||||||||||||||||||||||||||
2020 | $13.09 | 0.21 | 0.71 | 0.92 | (0.25) | (3.08) | (3.33) | $10.68 | 6.58% | 0.01% | 0.47% | 1.69% | 1.23% | 108% | $575,989 | ||||||||||||||||||||||||||||||||
2019 | $14.02 | 0.25 | 0.64 | 0.89 | (0.24) | (1.58) | (1.82) | $13.09 | 8.05% | 0.01% | 0.47% | 1.89% | 1.43% | 84% | $1,421,363 | ||||||||||||||||||||||||||||||||
2018 | $13.03 | 0.27 | 1.79 | 2.06 | (0.26) | (0.81) | (1.07) | $14.02 | 16.11% | 0.04% | 0.46% | 1.93% | 1.51% | 83% | $1,672,840 | ||||||||||||||||||||||||||||||||
2017 | $11.20 | 0.19 | 1.83 | 2.02 | (0.19) | — | (0.19) | $13.03 | 18.09% | 0.47% | 0.47% | 1.54% | 1.54% | 88% | $1,771,561 | ||||||||||||||||||||||||||||||||
2016 | $12.30 | 0.19 | (0.53) | (0.34) | (0.19) | (0.57) | (0.76) | $11.20 | (2.65)% | 0.47% | 0.47% | 1.65% | 1.65% | 94% | $1,563,685 |
Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized.
(3)Six months ended December 31, 2020 (unaudited).
(4)Annualized.
See Notes to Financial Statements.
Additional Information |
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 American Century Investments’ website at americancentury.com/proxy. 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 americancentury.com/proxy. 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 as an exhibit to its reports on Form N-PORT. The fund’s 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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20
Notes |
21
Notes |
22
Notes |
23
Notes |
24
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 | |||||||
American Century Quantitative Equity Funds, 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. | ||||||||
©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-91462 2102 |
Semiannual Report | |||||
December 31, 2020 | |||||
Small Company Fund | |||||
Investor Class (ASQIX) | |||||
I Class (ASCQX) | |||||
A Class (ASQAX) | |||||
C Class (ASQCX) | |||||
R Class (ASCRX) | |||||
R5 Class (ASQGX) |
Table of Contents |
President's Letter | |||||
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Additional Information |
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.
President’s Letter |
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended December 31, 2020. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Stocks Soared as Backdrop Improved
The reporting period began amid an extraordinary recovery from massive market and economic disruptions triggered by the COVID-19 pandemic. Thanks to swift and aggressive action from central banks and federal governments, stocks and other riskier assets rebounded quickly as investors regained confidence in the global financial markets. In addition, the gradual reopening of economies along with COVID-19 treatment and vaccine progress also helped fuel the market's summer recovery.
Challenges related to the virus’s spread and the upcoming U.S. elections emerged in the fall. However, the November 3 election results removed some of the prevailing political uncertainty. Additionally, U.S. and European regulatory agencies approved the emergency use of two COVID-19 vaccines, and the U.S. Congress passed a second coronavirus fiscal aid package. These events, along with the U.K.’s orderly exit from the European Union, prompted a strong rally among global stocks. Investors looked ahead optimistically, even as a surge in COVID-19 infection rates triggered new lockdown measures.
Overall, global stocks delivered robust six-month returns. Non-U.S. stocks generally outpaced U.S. stocks, and within the U.S. market, small-cap stocks (Russell 2000 Index) were top performers, gaining nearly 38%. Growth stocks modestly outperformed value stocks across the board.
A Return to Normalcy
The return to pre-pandemic life appears to be on the horizon now that the first COVID-19 vaccines are available. In addition, medical professionals continue to improve treatment protocols for those afflicted with the virus. However, until the vaccine is widely distributed, investors may face periods of outbreak-related disruptions, economic uncertainty and heightened market volatility. These influences can be unsettling, but they tend to be temporary.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
DECEMBER 31, 2020 | |||||
Top Ten Holdings | % of net assets | ||||
Evercore, Inc., Class A | 1.2% | ||||
Advanced Drainage Systems, Inc. | 1.1% | ||||
Commercial Metals Co. | 1.1% | ||||
CommVault Systems, Inc. | 1.0% | ||||
ASGN, Inc. | 1.0% | ||||
j2 Global, Inc. | 1.0% | ||||
Shutterstock, Inc. | 1.0% | ||||
Essent Group Ltd. | 0.9% | ||||
Stewart Information Services Corp. | 0.9% | ||||
Enstar Group Ltd. | 0.8% | ||||
Top Five Industries | % of net assets | ||||
Software | 7.6% | ||||
Biotechnology | 7.2% | ||||
Banks | 6.3% | ||||
Specialty Retail | 5.3% | ||||
Health Care Equipment and Supplies | 3.6% | ||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 99.5% | ||||
Temporary Cash Investments | 0.7% | ||||
Temporary Cash Investments - Securities Lending Collateral | 1.2% | ||||
Other Assets and Liabilities | (1.4)% |
3
Shareholder Fee Example |
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 July 1, 2020 to December 31, 2020.
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 through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual 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 $25.00 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.
4
Beginning Account Value 7/1/20 | Ending Account Value 12/31/20 | Expenses Paid During Period(1) 7/1/20 - 12/31/20 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,339.50 | $5.13 | 0.87% | ||||||||||
I Class | $1,000 | $1,340.90 | $3.95 | 0.67% | ||||||||||
A Class | $1,000 | $1,337.80 | $6.60 | 1.12% | ||||||||||
C Class | $1,000 | $1,333.00 | $11.00 | 1.87% | ||||||||||
R Class | $1,000 | $1,336.20 | $8.07 | 1.37% | ||||||||||
R5 Class | $1,000 | $1,340.60 | $3.95 | 0.67% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,020.82 | $4.43 | 0.87% | ||||||||||
I Class | $1,000 | $1,021.83 | $3.41 | 0.67% | ||||||||||
A Class | $1,000 | $1,019.56 | $5.70 | 1.12% | ||||||||||
C Class | $1,000 | $1,015.78 | $9.50 | 1.87% | ||||||||||
R Class | $1,000 | $1,018.30 | $6.97 | 1.37% | ||||||||||
R5 Class | $1,000 | $1,021.83 | $3.41 | 0.67% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
5
Schedule of Investments |
DECEMBER 31, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.5% | ||||||||
Aerospace and Defense — 0.2% | ||||||||
Axon Enterprise, Inc.(1) | 3,482 | $ | 426,648 | |||||
Air Freight and Logistics — 0.3% | ||||||||
Atlas Air Worldwide Holdings, Inc.(1) | 10,964 | 597,977 | ||||||
Auto Components — 2.3% | ||||||||
Adient plc(1) | 17,689 | 615,047 | ||||||
American Axle & Manufacturing Holdings, Inc.(1) | 36,038 | 300,557 | ||||||
Dorman Products, Inc.(1) | 4,324 | 375,410 | ||||||
LCI Industries | 9,937 | 1,288,630 | ||||||
Patrick Industries, Inc. | 12,287 | 839,816 | ||||||
Stoneridge, Inc.(1) | 21,969 | 664,123 | ||||||
4,083,583 | ||||||||
Banks — 6.3% | ||||||||
Bancorp, Inc. (The)(1) | 26,681 | 364,196 | ||||||
Bank of NT Butterfield & Son Ltd. (The) | 29,310 | 913,300 | ||||||
Cadence BanCorp | 34,935 | 573,633 | ||||||
Cathay General Bancorp. | 34,332 | 1,105,147 | ||||||
Community Bank System, Inc. | 19,903 | 1,240,156 | ||||||
East West Bancorp, Inc. | 7,368 | 373,631 | ||||||
First BanCorp | 106,120 | 978,426 | ||||||
First Citizens BancShares, Inc., Class A | 976 | 560,487 | ||||||
First Financial Bankshares, Inc. | 9,719 | 351,585 | ||||||
First Merchants Corp. | 21,503 | 804,427 | ||||||
Horizon Bancorp, Inc. | 21,986 | 348,698 | ||||||
Independent Bank Group, Inc. | 9,034 | 564,806 | ||||||
International Bancshares Corp. | 7,751 | 290,197 | ||||||
Park National Corp. | 3,053 | 320,596 | ||||||
Signature Bank | 2,939 | 397,617 | ||||||
Texas Capital Bancshares, Inc.(1) | 16,055 | 955,272 | ||||||
United Bankshares, Inc. | 8,047 | 260,723 | ||||||
United Community Banks, Inc. | 22,665 | 644,593 | ||||||
Valley National Bancorp | 34,753 | 338,842 | ||||||
11,386,332 | ||||||||
Biotechnology — 7.2% | ||||||||
Agenus, Inc.(1) | 41,616 | 132,339 | ||||||
Akebia Therapeutics, Inc.(1) | 138,892 | 388,898 | ||||||
Blueprint Medicines Corp.(1) | 5,036 | 564,787 | ||||||
CareDx, Inc.(1) | 5,200 | 376,740 | ||||||
Coherus Biosciences, Inc.(1) | 22,249 | 386,688 | ||||||
Dicerna Pharmaceuticals, Inc.(1) | 4,361 | 96,073 | ||||||
Eagle Pharmaceuticals, Inc.(1) | 11,537 | 537,278 | ||||||
Esperion Therapeutics, Inc.(1)(2) | 8,782 | 228,332 | ||||||
Exact Sciences Corp.(1) | 1,712 | 226,823 | ||||||
Fate Therapeutics, Inc.(1) | 12,427 | 1,129,987 | ||||||
Halozyme Therapeutics, Inc.(1) | 16,866 | 720,347 | ||||||
Heron Therapeutics, Inc.(1) | 23,701 | 501,632 |
6
Shares | Value | |||||||
Invitae Corp.(1)(2) | 8,038 | $ | 336,069 | |||||
Ironwood Pharmaceuticals, Inc.(1) | 103,755 | 1,181,769 | ||||||
Mirati Therapeutics, Inc.(1) | 1,420 | 311,889 | ||||||
Natera, Inc.(1) | 4,646 | 462,370 | ||||||
Novavax, Inc.(1)(2) | 4,563 | 508,820 | ||||||
PTC Therapeutics, Inc.(1) | 9,986 | 609,445 | ||||||
Radius Health, Inc.(1) | 44,052 | 786,769 | ||||||
Rocket Pharmaceuticals, Inc.(1) | 22,755 | 1,247,884 | ||||||
Sangamo Therapeutics, Inc.(1) | 17,707 | 276,318 | ||||||
Sarepta Therapeutics, Inc.(1) | 2,218 | 378,147 | ||||||
Ultragenyx Pharmaceutical, Inc.(1) | 1,689 | 233,808 | ||||||
Vanda Pharmaceuticals, Inc.(1) | 51,909 | 682,084 | ||||||
Veracyte, Inc.(1) | 7,182 | 351,487 | ||||||
Vericel Corp.(1) | 8,635 | 266,649 | ||||||
12,923,432 | ||||||||
Building Products — 2.9% | ||||||||
Advanced Drainage Systems, Inc. | 23,287 | 1,946,328 | ||||||
Apogee Enterprises, Inc. | 24,187 | 766,244 | ||||||
Builders FirstSource, Inc.(1) | 18,879 | 770,452 | ||||||
JELD-WEN Holding, Inc.(1) | 5,865 | 148,736 | ||||||
Masonite International Corp.(1) | 2,407 | 236,704 | ||||||
PGT Innovations, Inc.(1) | 37,236 | 757,380 | ||||||
UFP Industries, Inc. | 9,425 | 523,559 | ||||||
5,149,403 | ||||||||
Capital Markets — 2.0% | ||||||||
Evercore, Inc., Class A | 18,845 | 2,066,166 | ||||||
Moelis & Co., Class A | 10,647 | 497,854 | ||||||
Piper Sandler Cos. | 3,066 | 309,359 | ||||||
PJT Partners, Inc., Class A | 8,946 | 673,186 | ||||||
3,546,565 | ||||||||
Chemicals — 1.4% | ||||||||
Minerals Technologies, Inc. | 8,709 | 541,003 | ||||||
Sensient Technologies Corp. | 15,506 | 1,143,878 | ||||||
Trinseo SA | 14,867 | 761,339 | ||||||
2,446,220 | ||||||||
Commercial Services and Supplies — 3.6% | ||||||||
Cimpress plc(1) | 14,623 | 1,283,022 | ||||||
Deluxe Corp. | 30,602 | 893,578 | ||||||
Healthcare Services Group, Inc. | 47,134 | 1,324,465 | ||||||
Herman Miller, Inc. | 18,702 | 632,128 | ||||||
HNI Corp. | 34,024 | 1,172,467 | ||||||
Matthews International Corp., Class A | 13,984 | 411,130 | ||||||
Steelcase, Inc., Class A | 49,424 | 669,695 | ||||||
6,386,485 | ||||||||
Communications Equipment — 1.5% | ||||||||
Calix, Inc.(1) | 5,805 | 172,757 | ||||||
Extreme Networks, Inc.(1) | 90,835 | 625,853 | ||||||
Harmonic, Inc.(1) | 88,211 | 651,879 | ||||||
Lumentum Holdings, Inc.(1) | 6,166 | 584,537 | ||||||
Plantronics, Inc. | 21,142 | 571,468 | ||||||
2,606,494 |
7
Shares | Value | |||||||
Construction and Engineering — 1.3% | ||||||||
Comfort Systems USA, Inc. | 4,019 | $ | 211,641 | |||||
EMCOR Group, Inc. | 7,959 | 727,930 | ||||||
MasTec, Inc.(1) | 15,425 | 1,051,676 | ||||||
Tutor Perini Corp.(1) | 22,234 | 287,930 | ||||||
2,279,177 | ||||||||
Construction Materials — 0.4% | ||||||||
US Concrete, Inc.(1) | 16,152 | 645,595 | ||||||
Consumer Finance — 0.5% | ||||||||
Encore Capital Group, Inc.(1) | 5,608 | 218,432 | ||||||
Green Dot Corp., Class A(1) | 10,973 | 612,293 | ||||||
PROG Holdings, Inc. | 2,089 | 112,534 | ||||||
943,259 | ||||||||
Distributors — 0.4% | ||||||||
Core-Mark Holding Co., Inc. | 23,321 | 684,938 | ||||||
Diversified Consumer Services — 0.3% | ||||||||
WW International, Inc.(1) | 20,833 | 508,325 | ||||||
Electrical Equipment — 2.2% | ||||||||
Atkore International Group, Inc.(1) | 25,311 | 1,040,535 | ||||||
AZZ, Inc. | 24,898 | 1,181,161 | ||||||
Plug Power, Inc.(1) | 27,000 | 915,570 | ||||||
TPI Composites, Inc.(1) | 14,287 | 754,068 | ||||||
3,891,334 | ||||||||
Electronic Equipment, Instruments and Components — 0.8% | ||||||||
OSI Systems, Inc.(1) | 12,784 | 1,191,724 | ||||||
Sanmina Corp.(1) | 7,931 | 252,920 | ||||||
1,444,644 | ||||||||
Energy Equipment and Services — 1.1% | ||||||||
Archrock, Inc. | 62,161 | 538,314 | ||||||
Cactus, Inc., Class A | 14,496 | 377,911 | ||||||
ChampionX Corp.(1) | 47,055 | 719,941 | ||||||
Liberty Oilfield Services, Inc., Class A | 32,522 | 335,302 | ||||||
1,971,468 | ||||||||
Entertainment — 0.1% | ||||||||
Glu Mobile, Inc.(1) | 20,182 | 181,840 | ||||||
Equity Real Estate Investment Trusts (REITs) — 3.0% | ||||||||
American Assets Trust, Inc. | 8,182 | 236,296 | ||||||
CareTrust REIT, Inc. | 27,977 | 620,530 | ||||||
Equity Lifestyle Properties, Inc. | 3,922 | 248,498 | ||||||
Kite Realty Group Trust | 16,532 | 247,319 | ||||||
LTC Properties, Inc. | 11,648 | 453,223 | ||||||
National Health Investors, Inc. | 16,436 | 1,136,878 | ||||||
Omega Healthcare Investors, Inc. | 21,635 | 785,783 | ||||||
Retail Opportunity Investments Corp. | 22,261 | 298,075 | ||||||
Retail Properties of America, Inc., Class A | 28,782 | 246,374 | ||||||
Sabra Health Care REIT, Inc. | 14,629 | 254,106 | ||||||
Uniti Group, Inc. | 21,499 | 252,183 | ||||||
Washington Real Estate Investment Trust | 28,263 | 611,329 | ||||||
5,390,594 | ||||||||
Food and Staples Retailing — 0.1% | ||||||||
SpartanNash Co. | 9,900 | 172,359 |
8
Shares | Value | |||||||
Food Products — 0.4% | ||||||||
Freshpet, Inc.(1) | 3,001 | $ | 426,112 | |||||
Lancaster Colony Corp. | 1,853 | 340,452 | ||||||
766,564 | ||||||||
Health Care Equipment and Supplies — 3.6% | ||||||||
Cardiovascular Systems, Inc.(1) | 28,912 | 1,265,189 | ||||||
Cerus Corp.(1) | 38,726 | 267,984 | ||||||
GenMark Diagnostics, Inc.(1) | 15,087 | 220,270 | ||||||
Integra LifeSciences Holdings Corp.(1) | 5,274 | 342,388 | ||||||
iRhythm Technologies, Inc.(1) | 1,882 | 446,429 | ||||||
Lantheus Holdings, Inc.(1) | 8,681 | 117,107 | ||||||
Nevro Corp.(1) | 3,616 | 625,929 | ||||||
NuVasive, Inc.(1) | 20,957 | 1,180,508 | ||||||
OraSure Technologies, Inc.(1) | 35,978 | 380,827 | ||||||
STAAR Surgical Co.(1) | 5,399 | 427,709 | ||||||
Tandem Diabetes Care, Inc.(1) | 6,085 | 582,213 | ||||||
Varex Imaging Corp.(1) | 38,160 | 636,509 | ||||||
6,493,062 | ||||||||
Health Care Providers and Services — 3.0% | ||||||||
Amedisys, Inc.(1) | 2,982 | 874,710 | ||||||
BioTelemetry, Inc.(1) | 8,355 | 602,228 | ||||||
Castle Biosciences, Inc.(1) | 9,978 | 670,023 | ||||||
HealthEquity, Inc.(1) | 5,731 | 399,508 | ||||||
Option Care Health, Inc.(1) | 37,694 | 589,534 | ||||||
Providence Service Corp. (The)(1) | 3,781 | 524,160 | ||||||
Tenet Healthcare Corp.(1) | 25,563 | 1,020,731 | ||||||
Tivity Health, Inc.(1) | 34,287 | 671,682 | ||||||
5,352,576 | ||||||||
Health Care Technology — 1.1% | ||||||||
Inspire Medical Systems, Inc.(1) | 3,769 | 708,911 | ||||||
Teladoc Health, Inc.(1) | 2,049 | 409,718 | ||||||
Vocera Communications, Inc.(1) | 18,876 | 783,921 | ||||||
1,902,550 | ||||||||
Hotels, Restaurants and Leisure — 2.8% | ||||||||
Boyd Gaming Corp.(1) | 15,199 | 652,341 | ||||||
Cheesecake Factory, Inc. (The) | 16,196 | 600,224 | ||||||
Cracker Barrel Old Country Store, Inc. | 4,566 | 602,347 | ||||||
Denny's Corp.(1) | 47,591 | 698,636 | ||||||
International Game Technology plc | 18,406 | 311,797 | ||||||
Jack in the Box, Inc. | 10,161 | 942,941 | ||||||
Scientific Games Corp., Class A(1) | 7,865 | 326,319 | ||||||
Texas Roadhouse, Inc. | 9,723 | 759,949 | ||||||
Wingstop, Inc. | 876 | 116,114 | ||||||
5,010,668 | ||||||||
Household Durables — 1.2% | ||||||||
Installed Building Products, Inc.(1) | 4,499 | 458,583 | ||||||
iRobot Corp.(1)(2) | 6,742 | 541,315 | ||||||
KB Home | 5,776 | 193,612 | ||||||
TRI Pointe Group, Inc.(1) | 53,712 | 926,532 | ||||||
2,120,042 | ||||||||
Household Products — 0.5% | ||||||||
Central Garden & Pet Co., Class A(1) | 26,538 | 964,126 |
9
Shares | Value | |||||||
Independent Power and Renewable Electricity Producers — 0.8% | ||||||||
Clearway Energy, Inc., Class C | 44,032 | $ | 1,405,942 | |||||
Industrial Conglomerates — 0.1% | ||||||||
Raven Industries, Inc. | 7,764 | 256,911 | ||||||
Insurance — 2.9% | ||||||||
BRP Group, Inc., Class A(1) | 20,142 | 603,656 | ||||||
Enstar Group Ltd.(1) | 7,384 | 1,512,908 | ||||||
Goosehead Insurance, Inc., Class A | 3,825 | 477,207 | ||||||
Stewart Information Services Corp. | 31,561 | 1,526,290 | ||||||
Trupanion, Inc.(1) | 9,320 | 1,115,697 | ||||||
5,235,758 | ||||||||
Interactive Media and Services — 0.9% | ||||||||
Cars.com, Inc.(1) | 51,230 | 578,899 | ||||||
EverQuote, Inc., Class A(1) | 3,803 | 142,042 | ||||||
Yelp, Inc.(1) | 24,982 | 816,162 | ||||||
1,537,103 | ||||||||
Internet and Direct Marketing Retail — 1.5% | ||||||||
Etsy, Inc.(1) | 1,466 | 260,816 | ||||||
Groupon, Inc.(1) | 9,907 | 376,416 | ||||||
PetMed Express, Inc.(2) | 8,192 | 262,636 | ||||||
Shutterstock, Inc. | 24,202 | 1,735,283 | ||||||
2,635,151 | ||||||||
IT Services — 1.4% | ||||||||
CSG Systems International, Inc. | 14,904 | 671,723 | ||||||
LiveRamp Holdings, Inc.(1) | 9,648 | 706,137 | ||||||
MAXIMUS, Inc. | 12,160 | 889,991 | ||||||
NIC, Inc. | 12,382 | 319,827 | ||||||
2,587,678 | ||||||||
Leisure Products — 0.4% | ||||||||
Malibu Boats, Inc., Class A(1) | 8,597 | 536,797 | ||||||
YETI Holdings, Inc.(1) | 3,371 | 230,812 | ||||||
767,609 | ||||||||
Life Sciences Tools and Services — 0.2% | ||||||||
Medpace Holdings, Inc.(1) | 3,075 | 428,040 | ||||||
Machinery — 2.9% | ||||||||
Albany International Corp., Class A | 3,870 | 284,135 | ||||||
Astec Industries, Inc. | 14,020 | 811,478 | ||||||
Enerpac Tool Group Corp. | 27,147 | 613,794 | ||||||
Hillenbrand, Inc. | 20,595 | 819,681 | ||||||
Mueller Industries, Inc. | 25,631 | 899,904 | ||||||
Navistar International Corp.(1) | 11,155 | 490,374 | ||||||
Proto Labs, Inc.(1) | 1,837 | 281,796 | ||||||
Tennant Co. | 5,867 | 411,687 | ||||||
Wabash National Corp. | 35,729 | 615,611 | ||||||
5,228,460 | ||||||||
Media — 1.1% | ||||||||
AMC Networks, Inc., Class A(1)(2) | 14,531 | 519,774 | ||||||
Cardlytics, Inc.(1) | 2,369 | 338,222 | ||||||
Meredith Corp. | 22,208 | 426,394 | ||||||
Scholastic Corp. | 25,346 | 633,650 | ||||||
1,918,040 |
10
Shares | Value | |||||||
Metals and Mining — 3.0% | ||||||||
Allegheny Technologies, Inc.(1) | 39,041 | $ | 654,717 | |||||
Cleveland-Cliffs, Inc.(2) | 51,073 | 743,623 | ||||||
Commercial Metals Co. | 94,298 | 1,936,881 | ||||||
Kaiser Aluminum Corp. | 10,528 | 1,041,219 | ||||||
Materion Corp. | 10,503 | 669,251 | ||||||
Worthington Industries, Inc. | 6,958 | 357,224 | ||||||
5,402,915 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) — 0.1% | ||||||||
Blackstone Mortgage Trust, Inc., Class A | 6,549 | 180,294 | ||||||
Oil, Gas and Consumable Fuels — 2.5% | ||||||||
DHT Holdings, Inc. | 225,548 | 1,179,616 | ||||||
Magnolia Oil & Gas Corp., Class A(1) | 66,168 | 467,146 | ||||||
Nordic American Tankers Ltd. | 130,901 | 386,158 | ||||||
Ovintiv, Inc. | 64,506 | 926,306 | ||||||
PDC Energy, Inc.(1) | 37,837 | 776,794 | ||||||
Southwestern Energy Co.(1) | 120,413 | 358,831 | ||||||
World Fuel Services Corp. | 13,076 | 407,448 | ||||||
4,502,299 | ||||||||
Paper and Forest Products — 0.9% | ||||||||
Neenah, Inc. | 16,741 | 926,112 | ||||||
Schweitzer-Mauduit International, Inc. | 19,355 | 778,265 | ||||||
1,704,377 | ||||||||
Personal Products — 1.6% | ||||||||
Edgewell Personal Care Co. | 6,052 | 209,278 | ||||||
elf Beauty, Inc.(1) | 20,781 | 523,473 | ||||||
Medifast, Inc. | 5,517 | 1,083,208 | ||||||
USANA Health Sciences, Inc.(1) | 13,258 | 1,022,192 | ||||||
2,838,151 | ||||||||
Pharmaceuticals — 2.3% | ||||||||
Collegium Pharmaceutical, Inc.(1) | 20,884 | 418,306 | ||||||
Corcept Therapeutics, Inc.(1) | 30,382 | 794,793 | ||||||
Innoviva, Inc.(1) | 68,202 | 845,023 | ||||||
Omeros Corp.(1)(2) | 15,019 | 214,546 | ||||||
Pacira BioSciences, Inc.(1) | 17,345 | 1,037,925 | ||||||
Supernus Pharmaceuticals, Inc.(1) | 33,561 | 844,395 | ||||||
4,154,988 | ||||||||
Professional Services — 1.5% | ||||||||
ASGN, Inc.(1) | 21,356 | 1,783,867 | ||||||
TriNet Group, Inc.(1) | 6,515 | 525,109 | ||||||
TrueBlue, Inc.(1) | 20,423 | 381,706 | ||||||
2,690,682 | ||||||||
Real Estate Management and Development — 1.0% | ||||||||
Cushman & Wakefield plc(1) | 16,301 | 241,744 | ||||||
eXp World Holdings, Inc.(1) | 4,928 | 311,055 | ||||||
Realogy Holdings Corp.(1) | 42,804 | 561,588 | ||||||
Redfin Corp.(1) | 8,744 | 600,101 | ||||||
1,714,488 | ||||||||
Road and Rail — 0.2% | ||||||||
Werner Enterprises, Inc. | 9,846 | 386,160 | ||||||
Semiconductors and Semiconductor Equipment — 3.2% | ||||||||
Amkor Technology, Inc. | 19,354 | 291,858 |
11
Shares | Value | |||||||
Axcelis Technologies, Inc.(1) | 6,731 | $ | 196,007 | |||||
Cirrus Logic, Inc.(1) | 11,139 | 915,626 | ||||||
Diodes, Inc.(1) | 8,179 | 576,619 | ||||||
Enphase Energy, Inc.(1) | 3,427 | 601,336 | ||||||
FormFactor, Inc.(1) | 25,062 | 1,078,167 | ||||||
MaxLinear, Inc.(1) | 15,216 | 581,099 | ||||||
Silicon Laboratories, Inc.(1) | 1,080 | 137,527 | ||||||
SiTime Corp.(1) | 2,316 | 259,230 | ||||||
Ultra Clean Holdings, Inc.(1) | 13,992 | 435,851 | ||||||
Veeco Instruments, Inc.(1) | 43,885 | 761,844 | ||||||
5,835,164 | ||||||||
Software — 7.6% | ||||||||
8x8, Inc.(1) | 29,799 | 1,027,172 | ||||||
Alarm.com Holdings, Inc.(1) | 3,202 | 331,247 | ||||||
Appfolio, Inc., Class A(1) | 3,506 | 631,220 | ||||||
Box, Inc., Class A(1) | 41,792 | 754,346 | ||||||
ChannelAdvisor Corp.(1) | 11,457 | 183,083 | ||||||
Cloudera, Inc.(1) | 55,559 | 772,826 | ||||||
CommVault Systems, Inc.(1) | 32,993 | 1,826,822 | ||||||
Cornerstone OnDemand, Inc.(1) | 5,042 | 222,050 | ||||||
Five9, Inc.(1) | 2,376 | 414,374 | ||||||
HubSpot, Inc.(1) | 749 | 296,934 | ||||||
j2 Global, Inc.(1) | 17,877 | 1,746,404 | ||||||
Mitek Systems, Inc.(1) | 23,803 | 423,217 | ||||||
Model N, Inc.(1) | 23,924 | 853,608 | ||||||
Progress Software Corp. | 14,717 | 665,061 | ||||||
Proofpoint, Inc.(1) | 3,619 | 493,668 | ||||||
RingCentral, Inc., Class A(1) | 851 | 322,503 | ||||||
SPS Commerce, Inc.(1) | 5,591 | 607,127 | ||||||
Tenable Holdings, Inc.(1) | 5,604 | 292,865 | ||||||
Varonis Systems, Inc.(1) | 4,956 | 810,851 | ||||||
Workiva, Inc.(1) | 7,582 | 694,663 | ||||||
Zendesk, Inc.(1) | 2,224 | 318,299 | ||||||
13,688,340 | ||||||||
Specialty Retail — 5.3% | ||||||||
Abercrombie & Fitch Co., Class A | 20,075 | 408,727 | ||||||
American Eagle Outfitters, Inc. | 32,181 | 645,873 | ||||||
Bed Bath & Beyond, Inc.(2) | 31,063 | 551,679 | ||||||
Camping World Holdings, Inc., Class A | 8,623 | 224,629 | ||||||
Guess?, Inc. | 22,759 | 514,809 | ||||||
Lithia Motors, Inc., Class A | 2,271 | 664,654 | ||||||
Lumber Liquidators Holdings, Inc.(1) | 18,774 | 577,113 | ||||||
MarineMax, Inc.(1) | 20,219 | 708,271 | ||||||
ODP Corp. (The) | 18,598 | 544,921 | ||||||
Rent-A-Center, Inc. | 22,296 | 853,714 | ||||||
RH(1) | 2,954 | 1,321,974 | ||||||
Signet Jewelers Ltd. | 38,004 | 1,036,369 | ||||||
Sleep Number Corp.(1) | 11,182 | 915,358 | ||||||
Zumiez, Inc.(1) | 16,413 | 603,670 | ||||||
9,571,761 | ||||||||
Technology Hardware, Storage and Peripherals — 0.4% | ||||||||
Diebold Nixdorf, Inc.(1) | 13,928 | 148,472 |
12
Shares | Value | |||||||
Pure Storage, Inc., Class A(1) | 25,237 | $ | 570,609 | |||||
719,081 | ||||||||
Textiles, Apparel and Luxury Goods — 2.1% | ||||||||
Crocs, Inc.(1) | 17,714 | 1,109,959 | ||||||
G-III Apparel Group Ltd.(1) | 32,481 | 771,099 | ||||||
Kontoor Brands, Inc. | 5,196 | 210,750 | ||||||
Oxford Industries, Inc. | 9,490 | 621,690 | ||||||
Steven Madden Ltd. | 31,625 | 1,116,995 | ||||||
3,830,493 | ||||||||
Thrifts and Mortgage Finance — 2.1% | ||||||||
Essent Group Ltd. | 36,595 | 1,580,904 | ||||||
NMI Holdings, Inc., Class A(1) | 41,409 | 937,914 | ||||||
Radian Group, Inc. | 58,892 | 1,192,563 | ||||||
3,711,381 | ||||||||
Trading Companies and Distributors — 3.0% | ||||||||
Applied Industrial Technologies, Inc. | 2,746 | 214,161 | ||||||
BMC Stock Holdings, Inc.(1) | 22,919 | 1,230,292 | ||||||
Boise Cascade Co. | 16,938 | 809,636 | ||||||
GMS, Inc.(1) | 21,750 | 662,940 | ||||||
H&E Equipment Services, Inc. | 22,315 | 665,210 | ||||||
Herc Holdings, Inc.(1) | 10,823 | 718,755 | ||||||
NOW, Inc.(1) | 82,681 | 593,650 | ||||||
Triton International Ltd. | 11,475 | 556,652 | ||||||
5,451,296 | ||||||||
TOTAL COMMON STOCKS (Cost $128,886,037) | 178,658,822 | |||||||
TEMPORARY CASH INVESTMENTS — 0.7% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.75%, 11/30/23 - 11/15/43, valued at $535,206), in a joint trading account at 0.06%, dated 12/31/20, due 1/4/21 (Delivery value $524,293) | 524,289 | |||||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 1.25%, 5/15/50, valued at $668,164), at 0.06%, dated 12/31/20, due 1/4/21 (Delivery value $655,004) | 655,000 | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 523 | 523 | ||||||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $1,179,812) | 1,179,812 | |||||||
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 1.2% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $2,129,640) | 2,129,640 | 2,129,640 | ||||||
TOTAL INVESTMENT SECURITIES — 101.4% (Cost $132,195,489) | 181,968,274 | |||||||
OTHER ASSETS AND LIABILITIES — (1.4)% | (2,475,061) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 179,493,213 |
FUTURES CONTRACTS PURCHASED | ||||||||||||||
Reference Entity | Contracts | Expiration Date | Notional Amount | Unrealized Appreciation (Depreciation)^ | ||||||||||
Russell 2000 E-Mini Index | 7 | March 2021 | $ | 691,180 | $ | 22,546 |
^Amount represents value and unrealized appreciation (depreciation).
13
NOTES TO SCHEDULE OF INVESTMENTS |
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $3,906,713. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $4,050,920, which includes securities collateral of $1,921,280.
See Notes to Financial Statements.
14
Statement of Assets and Liabilities |
DECEMBER 31, 2020 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $130,065,849) — including $3,906,713 of securities on loan | $ | 179,838,634 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $2,129,640) | 2,129,640 | ||||
Total investment securities, at value (cost of $132,195,489) | 181,968,274 | ||||
Deposits with broker for futures contracts | 42,000 | ||||
Receivable for capital shares sold | 37,785 | ||||
Dividends and interest receivable | 97,453 | ||||
Securities lending receivable | 1,975 | ||||
182,147,487 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 2,129,640 | ||||
Payable for capital shares redeemed | 394,122 | ||||
Payable for variation margin on futures contracts | 595 | ||||
Accrued management fees | 125,692 | ||||
Distribution and service fees payable | 4,225 | ||||
2,654,274 | |||||
Net Assets | $ | 179,493,213 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 152,702,919 | |||
Distributable earnings | 26,790,294 | ||||
$ | 179,493,213 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $155,621,287 | 9,625,156 | $16.17 | ||||||||
I Class, $0.01 Par Value | $9,036,889 | 556,247 | $16.25 | ||||||||
A Class, $0.01 Par Value | $10,819,783 | 687,781 | $15.73* | ||||||||
C Class, $0.01 Par Value | $866,441 | 58,514 | $14.81 | ||||||||
R Class, $0.01 Par Value | $2,929,791 | 191,494 | $15.30 | ||||||||
R5 Class, $0.01 Par Value | $219,022 | 13,468 | $16.26 |
*Maximum offering price $16.69 (net asset value divided by 0.9425).
See Notes to Financial Statements.
15
Statement of Operations |
FOR THE SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $1,112) | $ | 1,102,882 | |||
Securities lending, net | 14,146 | ||||
Interest | 1,108 | ||||
1,118,136 | |||||
Expenses: | |||||
Management fees | 688,372 | ||||
Distribution and service fees: | |||||
A Class | 11,987 | ||||
C Class | 3,890 | ||||
R Class | 14,229 | ||||
Directors' fees and expenses | 5,683 | ||||
Other expenses | 6,251 | ||||
730,412 | |||||
Net investment income (loss) | 387,724 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | 13,903,027 | ||||
Futures contract transactions | 1,373,131 | ||||
15,276,158 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 31,985,457 | ||||
Futures contracts | (179,855) | ||||
31,805,602 | |||||
Net realized and unrealized gain (loss) | 47,081,760 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 47,469,484 |
See Notes to Financial Statements.
16
Statement of Changes in Net Assets |
SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED) AND YEAR ENDED JUNE 30, 2020 | ||||||||
Increase (Decrease) in Net Assets | December 31, 2020 | June 30, 2020 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 387,724 | $ | 2,169,734 | ||||
Net realized gain (loss) | 15,276,158 | (18,438,282) | ||||||
Change in net unrealized appreciation (depreciation) | 31,805,602 | (13,472,667) | ||||||
Net increase (decrease) in net assets resulting from operations | 47,469,484 | (29,741,215) | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (324,475) | (3,031,824) | ||||||
I Class | (29,013) | (156,076) | ||||||
A Class | (9,995) | (31,135) | ||||||
R Class | — | (14,146) | ||||||
R5 Class | (654) | (2,505) | ||||||
Decrease in net assets from distributions | (364,137) | (3,235,686) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (26,247,134) | (419,982,085) | ||||||
Net increase (decrease) in net assets | 20,858,213 | (452,958,986) | ||||||
Net Assets | ||||||||
Beginning of period | 158,635,000 | 611,593,986 | ||||||
End of period | $ | 179,493,213 | $ | 158,635,000 |
See Notes to Financial Statements.
17
Notes to Financial Statements |
DECEMBER 31, 2020 (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. Small Company Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek long-term capital growth by investing primarily in common stocks of small companies.
The fund offers the Investor Class, I Class, A Class, C Class, R Class and R5 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.
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 (NAV) 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.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price.
Open-end management investment companies are valued at the reported NAV 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.
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.
18
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV 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. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
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.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
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, if any, are generally declared and paid quarterly. Distributions from net realized gains, if any, are generally declared and paid annually.
19
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.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of December 31, 2020.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 2,129,640 | — | — | — | $ | 2,129,640 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 2,129,640 |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
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.
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 ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, 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. 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 fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds.
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The Investment Category Fee range, the Complex Fee range and the effective annual management fee for each class for the period ended December 31, 2020 are as follows:
Investment Category Fee Range | Complex Fee Range | Effective Annual Management Fee | |||||||||
Investor Class | 0.5380% to 0.7200% | 0.2500% to 0.3100% | 0.85% | ||||||||
I Class | 0.0500% to 0.1100% | 0.65% | |||||||||
A Class | 0.2500% to 0.3100% | 0.85% | |||||||||
C Class | 0.2500% to 0.3100% | 0.85% | |||||||||
R Class | 0.2500% to 0.3100% | 0.85% | |||||||||
R5 Class | 0.0500% to 0.1100% | 0.65% |
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 ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. 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 December 31, 2020 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.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund sales were $245,471 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $116,792 in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended December 31, 2020 were $99,680,637 and $116,174,170, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended December 31, 2020 | Year ended June 30, 2020 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 400,000,000 | 340,000,000 | ||||||||||||
Sold | 232,040 | $ | 3,232,409 | 5,240,049 | $ | 58,414,522 | ||||||||
Issued in reinvestment of distributions | 18,531 | 260,571 | 229,972 | 2,972,437 | ||||||||||
Redeemed | (1,634,579) | (21,259,381) | (37,095,980) | (464,184,870) | ||||||||||
(1,384,008) | (17,766,401) | (31,625,959) | (402,797,911) | |||||||||||
I Class/Shares Authorized | 40,000,000 | 35,000,000 | ||||||||||||
Sold | 30,722 | 422,801 | 397,413 | 5,124,981 | ||||||||||
Issued in reinvestment of distributions | 2,024 | 28,980 | 11,912 | 155,978 | ||||||||||
Redeemed | (165,482) | (2,267,799) | (1,089,775) | (14,417,556) | ||||||||||
(132,736) | (1,816,018) | (680,450) | (9,136,597) | |||||||||||
A Class/Shares Authorized | 30,000,000 | 35,000,000 | ||||||||||||
Sold | 53,037 | 698,789 | 118,109 | 1,422,983 | ||||||||||
Issued in reinvestment of distributions | 673 | 9,346 | 2,415 | 29,014 | ||||||||||
Redeemed | (107,287) | (1,448,669) | (539,724) | (6,484,672) | ||||||||||
(53,577) | (740,534) | (419,200) | (5,032,675) | |||||||||||
C Class/Shares Authorized | 20,000,000 | 15,000,000 | ||||||||||||
Sold | 275 | 3,294 | 1,479 | 16,998 | ||||||||||
Redeemed | (10,377) | (126,667) | (56,297) | (647,404) | ||||||||||
(10,102) | (123,373) | (54,818) | (630,406) | |||||||||||
R Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 45,963 | 591,468 | 157,494 | 1,830,770 | ||||||||||
Issued in reinvestment of distributions | — | — | 1,211 | 13,928 | ||||||||||
Redeemed | (500,808) | (6,392,211) | (350,822) | (4,143,065) | ||||||||||
(454,845) | (5,800,743) | (192,117) | (2,298,367) | |||||||||||
R5 Class/Shares Authorized | 40,000,000 | 50,000,000 | ||||||||||||
Sold | 411 | 5,669 | 2,993 | 38,434 | ||||||||||
Issued in reinvestment of distributions | 45 | 654 | 192 | 2,505 | ||||||||||
Redeemed | (477) | (6,388) | (10,755) | (127,068) | ||||||||||
(21) | (65) | (7,570) | (86,129) | |||||||||||
Net increase (decrease) | (2,035,289) | $ | (26,247,134) | (32,980,114) | $ | (419,982,085) |
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.
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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 | |||||||||||
Common Stocks | $ | 178,658,822 | — | — | |||||||
Temporary Cash Investments | 523 | $ | 1,179,289 | — | |||||||
Temporary Cash Investments - Securities Lending Collateral | 2,129,640 | — | — | ||||||||
$ | 180,788,985 | $ | 1,179,289 | — | |||||||
Other Financial Instruments | |||||||||||
Futures Contracts | $ | 22,546 | — | — |
7. Derivative Instruments
Equity Price Risk — The fund is subject to equity price risk in the normal course of pursuing its investment objectives. A fund may enter into futures contracts based on an equity index in order to manage its exposure to changes in market conditions. 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 is required to deposit either cash or securities in an amount equal to a certain percentage of the contract value (initial margin). 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 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. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. The fund's average notional exposure to equity price risk derivative instruments held during the period was $2,719,896 futures contracts purchased.
The value of equity price risk derivative instruments as of December 31, 2020, is disclosed on the Statement of Assets and Liabilities as a liability of $595 in payable for variation margin on futures contracts.* For the six months ended December 31, 2020, the effect of equity price risk derivative instruments on the Statement of Operations was $1,373,131 in net realized gain (loss) on futures contract transactions and $(179,855) in change in net unrealized appreciation (depreciation) on futures contracts.
* Included in the unrealized appreciation (depreciation) on futures contracts as reported in the Schedule of Investments.
8. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
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.
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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 | $ | 133,515,897 | |||
Gross tax appreciation of investments | $ | 50,407,807 | |||
Gross tax depreciation of investments | (1,955,430) | ||||
Net tax appreciation (depreciation) of investments | $ | 48,452,377 |
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 June 30, 2020, the fund had accumulated short-term capital losses of $(18,998,788), 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.
As of June 30, 2020, the fund had post-October capital loss deferrals of $(17,683,067), which represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended June 30 (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 | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.10 | 0.03 | 4.07 | 4.10 | (0.03) | — | (0.03) | $16.17 | 33.95% | 0.87%(4) | 0.50%(4) | 64% | $155,621 | ||||||||||||||||||||||||||||
2020 | $13.28 | 0.06 | (1.14) | (1.08) | (0.10) | — | (0.10) | $12.10 | (8.19)% | 0.87% | 0.45% | 140% | $133,205 | ||||||||||||||||||||||||||||
2019 | $16.17 | 0.04 | (1.39) | (1.35) | (0.01) | (1.53) | (1.54) | $13.28 | (7.66)% | 0.87% | 0.30% | 99% | $566,025 | ||||||||||||||||||||||||||||
2018 | $15.04 | 0.02 | 1.91 | 1.93 | (0.02) | (0.78) | (0.80) | $16.17 | 13.18% | 0.86% | 0.11% | 92% | $592,615 | ||||||||||||||||||||||||||||
2017 | $12.46 | 0.05 | 2.58 | 2.63 | (0.05) | — | (0.05) | $15.04 | 21.19% | 0.87% | 0.37% | 90% | $594,198 | ||||||||||||||||||||||||||||
2016 | $13.68 | 0.04 | (1.22) | (1.18) | (0.04) | — | (0.04) | $12.46 | (8.63)% | 0.88% | 0.36% | 93% | $654,517 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.16 | 0.05 | 4.09 | 4.14 | (0.05) | — | (0.05) | $16.25 | 34.09% | 0.67%(4) | 0.70%(4) | 64% | $9,037 | ||||||||||||||||||||||||||||
2020 | $13.36 | 0.08 | (1.14) | (1.06) | (0.14) | — | (0.14) | $12.16 | (7.97)% | 0.67% | 0.65% | 140% | $8,376 | ||||||||||||||||||||||||||||
2019 | $16.26 | 0.07 | (1.40) | (1.33) | (0.04) | (1.53) | (1.57) | $13.36 | (7.50)% | 0.67% | 0.50% | 99% | $18,293 | ||||||||||||||||||||||||||||
2018 | $15.11 | 0.05 | 1.92 | 1.97 | (0.04) | (0.78) | (0.82) | $16.26 | 13.42% | 0.66% | 0.31% | 92% | $27,213 | ||||||||||||||||||||||||||||
2017 | $12.52 | 0.08 | 2.59 | 2.67 | (0.08) | — | (0.08) | $15.11 | 21.41% | 0.67% | 0.57% | 90% | $25,863 | ||||||||||||||||||||||||||||
2016 | $13.76 | 0.07 | (1.24) | (1.17) | (0.07) | — | (0.07) | $12.52 | (8.50)% | 0.68% | 0.56% | 93% | $34,094 |
For a Share Outstanding Throughout the Years Ended June 30 (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 | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
A Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $11.77 | 0.02 | 3.95 | 3.97 | (0.01) | — | (0.01) | $15.73 | 33.78% | 1.12%(4) | 0.25%(4) | 64% | $10,820 | ||||||||||||||||||||||||||||
2020 | $12.89 | 0.02 | (1.10) | (1.08) | (0.04) | — | (0.04) | $11.77 | (8.38)% | 1.12% | 0.20% | 140% | $8,727 | ||||||||||||||||||||||||||||
2019 | $15.78 | —(5) | (1.36) | (1.36) | — | (1.53) | (1.53) | $12.89 | (7.90)% | 1.12% | 0.05% | 99% | $14,960 | ||||||||||||||||||||||||||||
2018 | $14.72 | (0.02) | 1.86 | 1.84 | — | (0.78) | (0.78) | $15.78 | 12.90% | 1.11% | (0.14)% | 92% | $23,970 | ||||||||||||||||||||||||||||
2017 | $12.19 | 0.02 | 2.53 | 2.55 | (0.02) | — | (0.02) | $14.72 | 20.85% | 1.12% | 0.12% | 90% | $31,600 | ||||||||||||||||||||||||||||
2016 | $13.39 | 0.01 | (1.20) | (1.19) | (0.01) | — | (0.01) | $12.19 | (8.89)% | 1.13% | 0.11% | 93% | $35,153 | ||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $11.11 | (0.03) | 3.73 | 3.70 | — | — | — | $14.81 | 33.30% | 1.87%(4) | (0.50)%(4) | 64% | $866 | ||||||||||||||||||||||||||||
2020 | $12.22 | (0.07) | (1.04) | (1.11) | — | — | — | $11.11 | (9.08)% | 1.87% | (0.55)% | 140% | $762 | ||||||||||||||||||||||||||||
2019 | $15.16 | (0.10) | (1.31) | (1.41) | — | (1.53) | (1.53) | $12.22 | (8.60)% | 1.87% | (0.70)% | 99% | $1,508 | ||||||||||||||||||||||||||||
2018 | $14.27 | (0.13) | 1.80 | 1.67 | — | (0.78) | (0.78) | $15.16 | 12.01% | 1.86% | (0.89)% | 92% | $1,989 | ||||||||||||||||||||||||||||
2017 | $11.89 | (0.08) | 2.46 | 2.38 | — | — | — | $14.27 | 20.02% | 1.87% | (0.63)% | 90% | $1,703 | ||||||||||||||||||||||||||||
2016 | $13.15 | (0.07) | (1.19) | (1.26) | — | — | — | $11.89 | (9.58)% | 1.88% | (0.64)% | 93% | $1,631 | ||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $11.45 | —(5) | 3.85 | 3.85 | — | — | — | $15.30 | 33.62% | 1.37%(4) | 0.00%(4)(6) | 64% | $2,930 | ||||||||||||||||||||||||||||
2020 | $12.55 | (0.01) | (1.07) | (1.08) | (0.02) | — | (0.02) | $11.45 | (8.59)% | 1.37% | (0.05)% | 140% | $7,401 | ||||||||||||||||||||||||||||
2019 | $15.45 | (0.03) | (1.34) | (1.37) | — | (1.53) | (1.53) | $12.55 | (8.15)% | 1.37% | (0.20)% | 99% | $10,525 | ||||||||||||||||||||||||||||
2018 | $14.46 | (0.06) | 1.83 | 1.77 | — | (0.78) | (0.78) | $15.45 | 12.56% | 1.36% | (0.39)% | 92% | $15,038 | ||||||||||||||||||||||||||||
2017 | $11.99 | (0.02) | 2.49 | 2.47 | — | — | — | $14.46 | 20.60% | 1.37% | (0.13)% | 90% | $17,067 | ||||||||||||||||||||||||||||
2016 | $13.19 | (0.01) | (1.19) | (1.20) | — | — | — | $11.99 | (9.10)% | 1.38% | (0.14)% | 93% | $14,847 |
For a Share Outstanding Throughout the Years Ended June 30 (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 | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
R5 Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.17 | 0.05 | 4.09 | 4.14 | (0.05) | — | (0.05) | $16.26 | 34.06% | 0.67%(4) | 0.70%(4) | 64% | $219 | ||||||||||||||||||||||||||||
2020 | $13.37 | 0.08 | (1.14) | (1.06) | (0.14) | — | (0.14) | $12.17 | (7.97)% | 0.67% | 0.65% | 140% | $164 | ||||||||||||||||||||||||||||
2019 | $16.27 | 0.07 | (1.40) | (1.33) | (0.04) | (1.53) | (1.57) | $13.37 | (7.49)% | 0.67% | 0.50% | 99% | $282 | ||||||||||||||||||||||||||||
2018 | $15.12 | 0.06 | 1.90 | 1.96 | (0.03) | (0.78) | (0.81) | $16.27 | 13.34% | 0.66% | 0.31% | 92% | $213 | ||||||||||||||||||||||||||||
2017(7) | $14.90 | 0.02 | 0.20 | 0.22 | — | — | — | $15.12 | 1.48% | 0.67%(4) | 0.51%(4) | 90%(8) | $5 |
Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(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.
(3)Six months ended December 31, 2020 (unaudited).
(4)Annualized.
(5)Per-share amount was less than $0.005.
(6)Ratio was less than 0.005%.
(7)April 10, 2017 (commencement of sale) through June 30, 2017.
(8)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended June 30, 2017.
See Notes to Financial Statements.
Additional Information |
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 American Century Investments’ website at americancentury.com/proxy. 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 americancentury.com/proxy. 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 as an exhibit to its reports on Form N-PORT. The fund’s 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.
28
Notes |
29
Notes |
30
Notes |
31
Notes |
32
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 | |||||||
American Century Quantitative Equity Funds, 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. | ||||||||
©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-91457 2102 |
Semiannual Report | |||||
December 31, 2020 | |||||
Utilities Fund | |||||
Investor Class (BULIX) |
Table of Contents |
President's Letter | |||||
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Additional Information |
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.
President’s Letter |
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended December 31, 2020. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Stocks Soared as Backdrop Improved
The reporting period began amid an extraordinary recovery from massive market and economic disruptions triggered by the COVID-19 pandemic. Thanks to swift and aggressive action from central banks and federal governments, stocks and other riskier assets rebounded quickly as investors regained confidence in the global financial markets. In addition, the gradual reopening of economies along with COVID-19 treatment and vaccine progress also helped fuel the market's summer recovery.
Challenges related to the virus’s spread and the upcoming U.S. elections emerged in the fall. However, the November 3 election results removed some of the prevailing political uncertainty. Additionally, U.S. and European regulatory agencies approved the emergency use of two COVID-19 vaccines, and the U.S. Congress passed a second coronavirus fiscal aid package. These events, along with the U.K.’s orderly exit from the European Union, prompted a strong rally among global stocks. Investors looked ahead optimistically, even as a surge in COVID-19 infection rates triggered new lockdown measures.
Overall, global stocks delivered robust six-month returns. Non-U.S. stocks generally outpaced U.S. stocks, and within the U.S. market, small-cap stocks (Russell 2000 Index) were top performers, gaining nearly 38%. Growth stocks modestly outperformed value stocks across the board.
A Return to Normalcy
The return to pre-pandemic life appears to be on the horizon now that the first COVID-19 vaccines are available. In addition, medical professionals continue to improve treatment protocols for those afflicted with the virus. However, until the vaccine is widely distributed, investors may face periods of outbreak-related disruptions, economic uncertainty and heightened market volatility. These influences can be unsettling, but they tend to be temporary.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
DECEMBER 31, 2020 | |||||
Top Ten Holdings | % of net assets | ||||
NextEra Energy, Inc. | 15.6% | ||||
Dominion Energy, Inc. | 5.6% | ||||
Duke Energy Corp. | 5.5% | ||||
Southern Co. (The) | 5.0% | ||||
Sempra Energy | 4.4% | ||||
PPL Corp. | 3.8% | ||||
AES Corp. (The) | 3.5% | ||||
DTE Energy Co. | 3.3% | ||||
Entergy Corp. | 3.2% | ||||
American Water Works Co., Inc. | 3.2% | ||||
Sub-Industry Allocation | % of net assets | ||||
Electric Utilities | 56.1% | ||||
Multi-Utilities | 22.2% | ||||
Renewable Electricity | 5.1% | ||||
Independent Power Producers and Energy Traders | 5.0% | ||||
Water Utilities | 4.1% | ||||
Heavy Electrical Equipment | 2.1% | ||||
Semiconductor Equipment | 1.3% | ||||
Semiconductors | 1.2% | ||||
Wireless Telecommunication Services | 0.7% | ||||
Internet Services & Infrastructure | 0.6% | ||||
Mortgage REITs | 0.5% | ||||
Oil and Gas Refining and Marketing | 0.4% | ||||
Industrial Machinery | 0.3% | ||||
Electrical Components and Equipment | 0.3% | ||||
Cash and Equivalents* | 0.1% | ||||
*Includes temporary cash investments, temporary cash investments - securities lending collateral and other assets and liabilities. | |||||
Types of Investments in Portfolio | % of net assets | ||||
Domestic Common Stocks | 91.3% | ||||
Foreign Common Stocks* | 8.6% | ||||
Total Common Stocks | 99.9% | ||||
Temporary Cash Investments | 0.2% | ||||
Temporary Cash Investments - Securities Lending Collateral | 0.5% | ||||
Other Assets and Liabilities | (0.6)% |
*Includes depositary shares, dual listed securities and foreign ordinary shares.
3
Shareholder Fee Example |
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 July 1, 2020 to December 31, 2020.
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 through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual 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 $25.00 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.
4
Beginning Account Value 7/1/20 | Ending Account Value 12/31/20 | Expenses Paid During Period(1) 7/1/20 - 12/31/20 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,153.10 | $3.58 | 0.66% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,021.88 | $3.36 | 0.66% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
5
Schedule of Investments |
DECEMBER 31, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.9% | ||||||||
Electric Utilities — 56.1% | ||||||||
Alliant Energy Corp. | 115,252 | $ | 5,938,936 | |||||
American Electric Power Co., Inc. | 113,863 | 9,481,372 | ||||||
Duke Energy Corp. | 201,105 | 18,413,174 | ||||||
Edison International | 128,029 | 8,042,782 | ||||||
EDP - Energias de Portugal SA | 114,870 | 723,849 | ||||||
Electricite de France SA(1) | 55,522 | 879,410 | ||||||
Enel SpA | 112,925 | 1,140,358 | ||||||
Entergy Corp. | 108,390 | 10,821,658 | ||||||
Eversource Energy | 103,940 | 8,991,849 | ||||||
Exelon Corp. | 236,966 | 10,004,704 | ||||||
FirstEnergy Corp. | 104,561 | 3,200,612 | ||||||
Fortis, Inc.(2) | 45,991 | 1,877,353 | ||||||
Iberdrola SA | 222,252 | 3,178,548 | ||||||
NextEra Energy, Inc. | 681,871 | 52,606,348 | ||||||
NRG Energy, Inc. | 237,756 | 8,927,738 | ||||||
Pinnacle West Capital Corp. | 84,167 | 6,729,152 | ||||||
PPL Corp. | 450,944 | 12,716,621 | ||||||
Southern Co. (The) | 274,386 | 16,855,532 | ||||||
Xcel Energy, Inc. | 130,061 | 8,671,167 | ||||||
189,201,163 | ||||||||
Electrical Components and Equipment — 0.3% | ||||||||
Generac Holdings, Inc.(1) | 4,102 | 932,836 | ||||||
Heavy Electrical Equipment — 2.1% | ||||||||
Siemens Energy AG(1) | 30,385 | 1,115,157 | ||||||
Siemens Gamesa Renewable Energy SA | 44,001 | 1,786,268 | ||||||
TPI Composites, Inc.(1) | 51,658 | 2,726,509 | ||||||
Vestas Wind Systems A/S | 6,516 | 1,542,166 | ||||||
7,170,100 | ||||||||
Independent Power Producers and Energy Traders — 5.0% | ||||||||
AES Corp. (The) | 504,085 | 11,845,997 | ||||||
Clearway Energy, Inc., Class C | 114,478 | 3,655,283 | ||||||
Northland Power, Inc.(2) | 37,643 | 1,350,582 | ||||||
16,851,862 | ||||||||
Industrial Machinery — 0.3% | ||||||||
Evoqua Water Technologies Corp.(1) | 40,039 | 1,080,252 | ||||||
Internet Services & Infrastructure — 0.6% | ||||||||
NEXTDC Ltd.(1) | 231,308 | 2,190,811 | ||||||
Mortgage REITs — 0.5% | ||||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 24,146 | 1,531,581 | ||||||
Multi-Utilities — 22.2% | ||||||||
Algonquin Power & Utilities Corp.(2) | 53,844 | 886,190 | ||||||
Ameren Corp. | 62,911 | 4,910,833 | ||||||
CMS Energy Corp. | 44,714 | 2,728,001 | ||||||
Consolidated Edison, Inc. | 117,002 | 8,455,735 | ||||||
Dominion Energy, Inc. | 251,404 | 18,905,581 | ||||||
DTE Energy Co. | 91,030 | 11,051,952 |
6
Shares | Value | |||||||
Public Service Enterprise Group, Inc. | 98,776 | $ | 5,758,641 | |||||
Sempra Energy | 117,215 | 14,934,363 | ||||||
WEC Energy Group, Inc. | 78,807 | 7,252,608 | ||||||
74,883,904 | ||||||||
Oil and Gas Refining and Marketing — 0.4% | ||||||||
Renewable Energy Group, Inc.(1) | 18,557 | 1,314,207 | ||||||
Renewable Electricity — 5.1% | ||||||||
Boralex, Inc., A Shares | 31,218 | 1,158,566 | ||||||
Brookfield Renewable Partners LP | 81,501 | 3,516,768 | ||||||
EDP Renovaveis SA | 14,778 | 410,266 | ||||||
Encavis AG | 106,293 | 2,765,042 | ||||||
Innergex Renewable Energy, Inc. | 39,961 | 859,245 | ||||||
NextEra Energy Partners LP | 50,074 | 3,357,462 | ||||||
Sunnova Energy International, Inc.(1) | 58,697 | 2,648,995 | ||||||
TransAlta Renewables, Inc.(2) | 137,930 | 2,357,889 | ||||||
17,074,233 | ||||||||
Semiconductor Equipment — 1.3% | ||||||||
Enphase Energy, Inc.(1) | 11,037 | 1,936,662 | ||||||
SolarEdge Technologies, Inc.(1) | 2,946 | 940,128 | ||||||
Xinyi Solar Holdings Ltd. | 632,000 | 1,649,265 | ||||||
4,526,055 | ||||||||
Semiconductors — 1.2% | ||||||||
QUALCOMM, Inc. | 27,763 | 4,229,415 | ||||||
Water Utilities — 4.1% | ||||||||
American Water Works Co., Inc. | 69,723 | 10,700,389 | ||||||
Essential Utilities, Inc. | 42,197 | 1,995,496 | ||||||
Middlesex Water Co. | 15,715 | 1,138,866 | ||||||
13,834,751 | ||||||||
Wireless Telecommunication Services — 0.7% | ||||||||
T-Mobile US, Inc.(1) | 16,600 | 2,238,510 | ||||||
TOTAL COMMON STOCKS (Cost $270,459,278) | 337,059,680 | |||||||
TEMPORARY CASH INVESTMENTS — 0.2% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.75%, 11/30/23 - 11/15/43, valued at $333,379), in a joint trading account at 0.06%, dated 12/31/20, due 1/4/21 (Delivery value $326,580) | 326,578 | |||||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 1.25%, 5/15/50, valued at $416,165), at 0.06%, dated 12/31/20, due 1/4/21 (Delivery value $408,003) | 408,000 | |||||||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $734,578) | 734,578 | |||||||
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 0.5% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $1,729,362) | 1,729,362 | 1,729,362 | ||||||
TOTAL INVESTMENT SECURITIES — 100.6% (Cost $272,923,218) | 339,523,620 | |||||||
OTHER ASSETS AND LIABILITIES — (0.6)% | (2,082,237) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 337,441,383 |
7
NOTES TO SCHEDULE OF INVESTMENTS |
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $4,496,288. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $4,740,438, which includes securities collateral of $3,011,076.
See Notes to Financial Statements.
8
Statement of Assets and Liabilities |
DECEMBER 31, 2020 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $271,193,856) — including $4,496,288 of securities on loan | $ | 337,794,258 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $1,729,362) | 1,729,362 | ||||
Total investment securities, at value (cost of $272,923,218) | 339,523,620 | ||||
Cash | 12,227 | ||||
Foreign currency holdings, at value (cost of $7,195) | 7,215 | ||||
Receivable for capital shares sold | 82,772 | ||||
Dividends and interest receivable | 625,814 | ||||
Securities lending receivable | 557 | ||||
340,252,205 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 1,729,362 | ||||
Payable for capital shares redeemed | 897,817 | ||||
Accrued management fees | 183,643 | ||||
2,810,822 | |||||
Net Assets | $ | 337,441,383 | |||
Investor Class Capital Shares, $0.01 Par Value | |||||
Shares authorized | 300,000,000 | ||||
Shares outstanding | 19,586,858 | ||||
Net Asset Value Per Share | $ | 17.23 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 273,549,881 | |||
Distributable earnings | 63,891,502 | ||||
$ | 337,441,383 |
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $36,035) | $ | 5,372,458 | |||
Securities lending, net | 7,287 | ||||
Interest | 727 | ||||
5,380,472 | |||||
Expenses: | |||||
Management fees | 1,109,373 | ||||
Directors' fees and expenses | 12,051 | ||||
Other expenses | 652 | ||||
1,122,076 | |||||
Net investment income (loss) | 4,258,396 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | 2,737,478 | ||||
Foreign currency translation transactions | 9,107 | ||||
2,746,585 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 40,602,799 | ||||
Translation of assets and liabilities in foreign currencies | 1,096 | ||||
40,603,895 | |||||
Net realized and unrealized gain (loss) | 43,350,480 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 47,608,876 |
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED) AND YEAR ENDED JUNE 30, 2020 | ||||||||
Increase (Decrease) in Net Assets | December 31, 2020 | June 30, 2020 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 4,258,396 | $ | 11,464,427 | ||||
Net realized gain (loss) | 2,746,585 | 16,330,266 | ||||||
Change in net unrealized appreciation (depreciation) | 40,603,895 | (57,768,238) | ||||||
Net increase (decrease) in net assets resulting from operations | 47,608,876 | (29,973,545) | ||||||
Distributions to Shareholders | ||||||||
From earnings | (20,247,405) | (11,389,979) | ||||||
Capital Share Transactions | ||||||||
Proceeds from shares sold | 11,482,092 | 33,412,352 | ||||||
Proceeds from reinvestment of distributions | 19,017,689 | 10,727,644 | ||||||
Payments for shares redeemed | (42,336,725) | (87,807,808) | ||||||
Net increase (decrease) in net assets from capital share transactions | (11,836,944) | (43,667,812) | ||||||
Net increase (decrease) in net assets | 15,524,527 | (85,031,336) | ||||||
Net Assets | ||||||||
Beginning of period | 321,916,856 | 406,948,192 | ||||||
End of period | $ | 337,441,383 | $ | 321,916,856 | ||||
Transactions in Shares of the Fund | ||||||||
Sold | 666,507 | 1,868,720 | ||||||
Issued in reinvestment of distributions | 1,140,247 | 589,723 | ||||||
Redeemed | (2,451,373) | (4,988,647) | ||||||
Net increase (decrease) in shares of the fund | (644,619) | (2,530,204) |
See Notes to Financial Statements.
11
Notes to Financial Statements |
DECEMBER 31, 2020 (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. Utilities Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objectives are to seek current income and long-term growth of capital and income. The fund invests at least 80% of its assets in equity securities of companies engaged in the utilities industry. The fund offers the Investor Class.
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 (NAV) 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.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity 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 NAV per share. Repurchase agreements are valued at cost, which approximates fair value.
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 NAV 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. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
12
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.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
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.
Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid quarterly. Distributions from 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.
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Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of December 31, 2020.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 1,729,362 | — | — | — | $ | 1,729,362 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 1,729,362 |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
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., and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
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). The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses. The fee is computed and accrued daily based on the daily net assets of the fund and paid monthly in arrears. The fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds. The rates for the Investment Category Fee range from 0.3380% to 0.5200% and the rates for the Complex Fee range from 0.2500% to 0.3100%. The effective annual management fee for the period ended December 31, 2020 was 0.65%.
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.
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Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $405,736 and $1,733,161, respectively. The effect of interfund transactions on the Statement of Operations was $188,809 in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended December 31, 2020 were $165,005,045 and $187,880,694, respectively.
5. 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 | |||||||||||
Common Stocks | |||||||||||
Electric Utilities | $ | 183,278,998 | $ | 5,922,165 | — | ||||||
Heavy Electrical Equipment | 2,726,509 | 4,443,591 | — | ||||||||
Independent Power Producers and Energy Traders | 15,501,280 | 1,350,582 | — | ||||||||
Internet Services & Infrastructure | — | 2,190,811 | — | ||||||||
Multi-Utilities | 73,997,714 | 886,190 | — | ||||||||
Renewable Electricity | 9,523,225 | 7,551,008 | |||||||||
Semiconductor Equipment | 2,876,790 | 1,649,265 | — | ||||||||
Other Industries | 25,161,552 | — | — | ||||||||
Temporary Cash Investments | — | 734,578 | — | ||||||||
Temporary Cash Investments - Securities Lending Collateral | 1,729,362 | — | — | ||||||||
$ | 314,795,430 | $ | 24,728,190 | — |
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6. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
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.
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.
The fund concentrates its investments in a narrow segment of the total market. Because of this, the fund may be subject to greater risk and market fluctuations than a portfolio representing a broader range of industries.
7. 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 | $ | 275,295,380 | |||
Gross tax appreciation of investments | $ | 65,325,904 | |||
Gross tax depreciation of investments | (1,097,664) | ||||
Net tax appreciation (depreciation) of investments | $ | 64,228,240 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended June 30 (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 | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||
2020(3) | $15.91 | 0.22 | 2.17 | 2.39 | (0.23) | (0.84) | (1.07) | $17.23 | 15.31% | 0.66%(4) | 2.50%(4) | 50% | $337,441 | ||||||||||||||||||||||||||||
2020 | $17.88 | 0.53 | (1.97) | (1.44) | (0.53) | — | (0.53) | $15.91 | (8.39)% | 0.67% | 2.95% | 102% | $321,917 | ||||||||||||||||||||||||||||
2019 | $16.85 | 0.56 | 1.46 | 2.02 | (0.56) | (0.43) | (0.99) | $17.88 | 12.26% | 0.67% | 3.20% | 64% | $406,948 | ||||||||||||||||||||||||||||
2018 | $18.14 | 0.58 | (0.58) | —(5) | (0.56) | (0.73) | (1.29) | $16.85 | (0.06)% | 0.67% | 3.31% | 48% | $405,844 | ||||||||||||||||||||||||||||
2017 | $19.35 | 0.59 | (0.48) | 0.11 | (0.58) | (0.74) | (1.32) | $18.14 | 0.61% | 0.67% | 3.17% | 39% | $540,880 | ||||||||||||||||||||||||||||
2016 | $16.28 | 0.57 | 3.44 | 4.01 | (0.54) | (0.40) | (0.94) | $19.35 | 25.76% | 0.68% | 3.35% | 36% | $640,342 |
Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized.
(3)Six months ended December 31, 2020 (unaudited).
(4)Annualized.
(5)Per-share amount was less than $0.005.
See Notes to Financial Statements.
Additional Information |
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 American Century Investments’ website at americancentury.com/proxy. 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 americancentury.com/proxy. 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 as an exhibit to its reports on Form N-PORT. The fund’s 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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Notes |
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Notes |
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Notes |
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Notes |
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Notes |
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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 | |||||||
American Century Quantitative Equity Funds, 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. | ||||||||
©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-91451 2102 |
(b) None.
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.
(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 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.
(a)(1) Not applicable for semiannual report filings.
(a)(2) Separate certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are filed and attached hereto as EX-99.CERT.
(a)(3) Not applicable.
(a)(4) 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 Quantitative Equity Funds, Inc. | |||||||||||||
By: | /s/ Patrick Bannigan | |||||||||||||
Name: | Patrick Bannigan | |||||||||||||
Title: | President | |||||||||||||
Date: | February 24, 2021 |
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/ Patrick Bannigan | ||||||||||
Name: | Patrick Bannigan | ||||||||||
Title: | President | ||||||||||
(principal executive officer) | |||||||||||
Date: | February 24, 2021 |
By: | /s/ R. Wes Campbell | ||||||||||
Name: | R. Wes Campbell | ||||||||||
Title: | Treasurer and | ||||||||||
Chief Financial Officer | |||||||||||
(principal financial officer) | |||||||||||
Date: | February 24, 2021 |