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 811-6247 ---------------------------------------------- AMERICAN CENTURY WORLD MUTUAL 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: 11-30 ------------------------------------------------------ Date of reporting period: 11-30-2007 ------------------------------------------------------ ITEM 1. REPORTS TO STOCKHOLDERS. [front cover] AMERICAN CENTURY INVESTMENTS Annual Report November 30, 2007 [photo of winter] International Growth Fund Global Growth Fund Emerging Markets Fund International Value Fund [american century investments logo and text logo] OUR MESSAGE TO YOU [photo of Jonathan Thomas] JONATHAN THOMAS President and CEO American Century Companies, Inc. To help you monitor your investment, my colleagues and I take pride in providing you with the annual report for the American Century® International Growth, Global Growth, Emerging Markets, and International Value funds for the 12 months ended November 30, 2007. I am honored to be addressing you in the "Our Message" space long devoted to company founder Jim Stowers, Jr. and his son Jim Stowers III. Jim Stowers III stepped down from the American Century Companies, Inc. (ACC) board of directors in July 2007, his final step in a well-planned career transition to pursue new ventures outside the company. This reflected his family's support of our company's direction and its leadership team. The Stowers family remains an integral part of our heritage, leadership, and financial structure. In fact, Jim Stowers, Jr. continues as co-chair of the ACC board with Richard Brown, who has been on the board since 1998. American Century Investments, our clients, and our employees have been my top priority since I became company president and CEO in March, 2007. We have also added the executive talents of overall chief investment officer (CIO) Enrique Chang, international equity CIO Mark On, U.S. growth equity CIO Steve Lurito, and chief operating officer Barry Fink. This skilled group, combined with our existing senior management team, has already had a positive impact on the development and management of the products and services we take pride in delivering to you. We believe the ultimate measure of our performance is our clients' success. Therefore, our focus continues to be on building a long-term relationship with you and on delivering superior investment performance across our product line. /s/Jonathan Thomas [photo of James E. Stowers, Jr.] JAMES E. STOWERS, JR. Founder and Co-Chairman of the Board American Century Companies, Inc. [photo of Richard Brown] RICHARD BROWN Co-Chairman of the Board American Century Companies, Inc. TABLE OF CONTENTS Market Perspective. . . . . . . . . . . . . . . . . . . . . . . . . . 2 International Equity Total Returns . . . . . . . . . . . . . . . . . 2 INTERNATIONAL GROWTH Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . . 5 Top Ten Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Types of Investments in Portfolio and Investments by Country . . . . 6 Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . 7 GLOBAL GROWTH Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . . 12 Top Ten Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Types of Investments in Portfolio and Investments by Country . . . . 13 Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . 14 EMERGING MARKETS Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . . 19 Top Ten Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Types of Investments in Portfolio and Investments by Country . . . . 20 Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . 21 INTERNATIONAL VALUE Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . . 26 Top Ten Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Types of Investments in Portfolio and Investments by Country . . . . 27 Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . 28 Shareholder Fee Examples. . . . . . . . . . . . . . . . . . . . . . . 31 FINANCIAL STATEMENTS Statement of Assets and Liabilities . . . . . . . . . . . . . . . . . 35 Statement of Operations . . . . . . . . . . . . . . . . . . . . . . . 37 Statement of Changes in Net Assets. . . . . . . . . . . . . . . . . . 38 Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . 41 Financial Highlights. . . . . . . . . . . . . . . . . . . . . . . . . 54 Report of Independent Registered Public Accounting Firm . . . . . . . 79 OTHER INFORMATION Proxy Voting Results. . . . . . . . . . . . . . . . . . . . . . . . . 80 Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 Share Class Information . . . . . . . . . . . . . . . . . . . . . . . 85 Additional Information. . . . . . . . . . . . . . . . . . . . . . . . 87 Index Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . 88 The opinions expressed in the Market Perspective and each of the Portfolio Commentaries reflect those of the portfolio management team as of the date of the report, and do not necessarily represent the opinions of American Century or any other person in the American Century organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century 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 funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century 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 by third party vendors. To the best of American Century's knowledge, such information is accurate at the time of printing. MARKET PERSPECTIVE [photo of chief investment officer] By Mark On, Chief Investment Officer, International Equity INTERNATIONAL STOCKS SHOWED ROBUST GAINS A strong global economy combined with relatively tame inflation and healthy labor markets helped promote stellar stock gains for the 12 months ended November 30, 2007. Among the developed markets, Europe fared well, with the strongest returns coming from the euro-zone nations. In contrast, performance was flat in Japan, as weak consumer spending, a challenging political climate, and slowing demand from the United States pressured Japan's stocks. Emerging markets remained the world's standout performers, due to optimistic growth forecasts for developing markets and higher commodity prices. U.S. CREDIT WOES RATTLED MARKETS Mounting problems in the U.S. subprime mortgage market led to concerns regarding global economic growth, generating periodic market volatility and contributing to a growing desire globally for less-risky assets. In an effort to soothe frayed nerves, the U.S. Federal Reserve (the Fed), the European Central Bank, and the Bank of England injected liquidity into their banking systems. A mid-September rate cut by the Fed served to strengthen the euro and British pound, relative to the sagging U.S. dollar. Late in the period, the dollar hit new record lows against those currencies. RATES ROSE IN EUROPE AND BRITAIN Healthy economic growth prompted the European Central Bank and the Bank of England to raise interest rates three times during the period. Although inflationary pressures remained at the fore, both banks held off making additional rate increases given the fallout from the credit-market turmoil. Optimism surrounding improving economic growth prompted the Bank of Japan to raise rates in February. Nevertheless, expectations for additional rate hikes went unfulfilled, as sluggish domestic consumption kept the central bank on hold. OPPORTUNITIES ABOUND Although the outlook for international equities remains somewhat uncertain, we believe international stocks present significant opportunities for investors. Combining the higher growth rate of the international markets with our international team's focus on companies with growth acceleration, we believe there is a significant opportunity to deliver attractive performance in the coming year. International Equity Total Returns For the 12 months ended November 30, 2007 (in U.S. dollars) MSCI EM Index 45.57% MSCI EAFE Growth Index 22.32% MSCI Europe Index 19.61% MSCI EAFE Index 17.30% MSCI World Free Index 12.71% MSCI EAFE Value Index 12.30% MSCI Japan Index 2.19% - ------ 2 PERFORMANCE International Growth Total Returns as of November 30, 2007 Average Annual Returns Since Inception 1 year 5 years 10 years Inception Date INVESTOR CLASS 23.09% 18.53% 9.47% 11.14% 5/9/91 MSCI EAFE INDEX 17.30% 21.31% 9.00% 8.13%(1) -- MSCI EAFE GROWTH INDEX 22.32% 19.81% 6.83% 6.15%(1) -- Institutional Class 23.36% 18.76% 9.70% 9.63% 11/20/97 Advisor Class 22.87% 18.26% 9.20% 10.18% 10/2/96 A Class No sales charge* 22.84% -- -- 21.02% With sales charge* 15.78% -- -- 19.56% 1/31/03 B Class No sales charge* 21.93% -- -- 20.13% With sales charge* 17.93% -- -- 19.92% 1/31/03 C Class 21.97% 17.39% -- 7.58% 6/4/01 R Class 22.48% -- -- 19.91%(2) 8/29/03 * Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. B Class shares redeemed within six years of purchase are subject to a CDSC that declines from 5.00% during the first year after purchase to 0.00% the sixth year after purchase. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. Please see the Share Class Information pages for more about the applicable sales charges for each share class. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied. (1) Since 4/30/91, the date nearest the Investor Class's inception for which data are available. (2) Class returns would have been lower if the class had not received partial reimbursements of its distribution and service fees. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the indices do not. - ------ 3 International Growth Growth of $10,000 Over 10 Years $10,000 investment made November 30, 1997
![](https://capedge.com/proxy/N-CSR/0000872825-08-000005/growthintlgrowth0801.gif)
One-Year Returns Over 10 Years Periods ended November 30 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Investor Class 16.74% 43.22% -2.47% -24.18% -14.54% 13.70% 17.45% 12.09% 27.03% 23.09% MSCI EAFE Index 16.45% 21.10% -9.67% -19.13% -12.50% 24.22% 24.19% 13.25% 28.20% 17.30% MSCI EAFE Growth Index 17.05% 23.18% -17.66% -23.61% -13.53% 20.63% 19.07% 12.14% 25.29% 22.32% Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the indices do not. - ------ 4 PORTFOLIO COMMENTARY International Growth Portfolio Managers: Alex Tedder and Keith Creveling PERFORMANCE SUMMARY International Growth gained 23.09%* during the 12 months ended November 30, 2007. The portfolio's benchmark, the MSCI EAFE Index, advanced 17.30%. Compared to its peers, International Growth outperformed the average return of 20.46%** for the 63 funds in Lipper Inc.'s International Large Cap Growth Funds category. Strong global economic growth combined with a weak U.S. dollar helped generate strong 12-month performance among international stocks. On an absolute basis, all sectors the portfolio invested in posted positive returns, and all but one sector (consumer discretionary) showed double-digit gains. Favorable stock selection in six of 10 sectors accounted for the portfolio's outperformance relative to the benchmark. From a country perspective, Japan (the portfolio's largest country weighting), India (which was not represented in the benchmark), and Germany made the greatest overall contributions to the portfolio's relative performance. Stock selection in Japan and Germany was effective, as were an underweight in Japan and an overweight in Germany. Despite its relatively small weighting, India had a strong impact on the portfolio's relative return. The worst country contributors to relative performance included the Netherlands, South Korea and Sweden. Our investments and an underweight hurt performance in the Netherlands, while our holdings in Sweden accounted for the lagging results. Our South Korean holdings posted a negative return for the reporting period, and the benchmark had no exposure to that market. FINANCIALS, INDUSTRIALS LED ALL SECTORS The financials sector, the largest weighting in the portfolio, made the greatest positive contribution to relative performance. In particular, our stock selections within the commercial banking and diversified financial services industries offered strong performance. Our overweight in Deutsche Boerse AG, the Germany-based owner of several securities exchanges, led to solid results. In addition, our position in China Merchants Bank, an emerging-market investment not represented in the benchmark, boosted performance, as the stock returned 142% during the reporting period. Top Ten Holdings as of November 30, 2007 % of net % of net assets as of assets as of 11/30/07 5/31/07 Deutsche Boerse AG 1.8% 1.2% Julius Baer Holding AG 1.8% 1.6% Nintendo Co., Ltd. 1.6% 1.6% Tesco plc 1.6% 1.6% National Bank of Greece SA 1.6% 1.6% BG Group plc 1.6% 1.3% Nestle SA 1.6% 1.1% Saipem SpA 1.6% 1.4% Novo Nordisk AS B Shares 1.5% -- Syngenta AG 1.5% 1.2% * All fund returns referenced in this commentary are for Investor Class shares. ** The Lipper Inc.'s International Large Cap Growth Funds category average returns for the five- and 10-year periods as of November 30, 2007, were 18.24% and 6.91%, respectively. Data provided by Lipper Inc. -- A Reuters Company. ©2007 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Lipper Fund Performance -- Performance data is total return, and is preliminary and subject to revision. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. - ------ 5 International Growth The portfolio's relative performance also benefited from strong stock selection combined with an overweight in the industrials sector. In particular, our stocks in the electrical equipment industry performed well, including Q-Cells AG, the German manufacturer of solar cells, and Vestas Wind Systems, a Danish supplier of wind power solutions. Our information technology stocks were also strong contributors, led by Japan's Nintendo, a videogame manufacturer, which advanced 160% during the reporting period on strong sales of its Wii gaming system. Nintendo was the portfolio's top-performing stock for the reporting period. CONSUMER SECTORS LAGGED Despite posting a total return of 22.70% for the reporting period, the portfolio's consumer staples sector was the greatest laggard relative to the benchmark. Our stock selection and underweight in the food products and tobacco industries primarily accounted for the shortfall. The consumer discretionary sector also detracted, primarily due to slumping stocks and an overweight, with stock selection in the automobile industry detracting the most in that sector. OUTLOOK International Growth seeks companies located throughout the world, excluding the United States, exhibiting accelerating earnings and revenue growth. Our analysis indicates the outlook for large-cap growth companies remains favorable. The portfolio has broad exposure to high-quality growth companies in numerous markets, and we believe these companies will deliver solid returns, even during volatile market conditions. Types of Investments in Portfolio % of net % of net assets as of assets as of 11/30/07 5/31/07 Foreign Common Stocks 99.6% 100.6% Foreign Preferred Stocks -- 0.6% TOTAL EQUITY EXPOSURE 99.6% 101.2% Temporary Cash Investments 0.4% 0.1% Other Assets and Liabilities(1) --(2) (1.3)% (1) Includes securities lending collateral and other assets and liabilities. (2) Category is less than 0.05% of total net assets. Investments by Country as of November 30, 2007 % of net % of net assets as of assets as of 11/30/07 5/31/07 Japan 15.0% 17.5% United Kingdom 13.0% 14.7% Switzerland 11.4% 12.9% Germany 9.1% 10.9% France 8.7% 9.5% Australia 5.4% 5.0% Spain 3.9% 2.3% Canada 3.5% 0.8% India 3.0% 2.8% Italy 2.8% 4.6% Other Countries 23.8% 20.2% Cash and Equivalents(3) 0.4% (1.2)% (3) Includes temporary cash investments, securities lending collateral and other assets and liabilities. - ------ 6 SCHEDULE OF INVESTMENTS International Growth NOVEMBER 30, 2007 Shares ($ IN THOUSANDS) Value Common Stocks -- 99.6% AUSTRALIA -- 5.4% 988,394 BHP Billiton Ltd.(1) $ 37,560 3,539,528 Boart Longyear Group(2) 7,583 886,930 CSL Ltd.(1) 27,402 2,826,960 Oxiana Ltd.(1) 10,022 998,500 QBE Insurance Group Ltd. 28,902 120,704 Rio Tinto Ltd.(1) 15,536 580,410 Westpac Banking Corp. 14,562 ---------- 141,567 ---------- AUSTRIA -- 0.5% 183,709 Erste Bank der oesterreichischen Sparkassen AG 13,250 ---------- BELGIUM -- 2.2% 269,985 KBC Groupe 37,369 511,517 SES SA Fiduciary Depositary Receipt(2) 12,864 28,051 Umicore 6,576 ---------- 56,809 ---------- BRAZIL -- 1.3% 170,000 Bolsa de Mercadorias e Futuros -- BM&F SA(2) 2,289 1,067,600 Redecard SA 19,392 800,900 Unibanco-Uniao de Bancos Brasileiros SA 11,855 ---------- 33,536 ---------- CANADA -- 3.5% 187,420 EnCana Corp.(1) 12,229 235,650 Research In Motion Ltd.(2) 26,822 650,570 Rogers Communications Inc. Cl B 27,043 243,159 Shoppers Drug Mart Corp. 13,342 124,620 Suncor Energy Inc. 11,917 ---------- 91,353 ---------- CZECH REPUBLIC -- 1.1% 389,750 CEZ AS 28,807 ---------- DENMARK -- 2.5% 320,200 Novo Nordisk AS B Shares 40,484 277,740 Vestas Wind Systems AS(2) 26,263 ---------- 66,747 ---------- FINLAND -- 1.4% 94,080 Metso Oyj(1) 5,103 781,740 Nokia Oyj 30,797 ---------- 35,900 ---------- Shares ($ IN THOUSANDS) Value FRANCE -- 8.7% 126,139 Accor SA $ 10,694 119,770 ALSTOM Co. 26,900 562,798 AXA SA 22,836 248,798 Groupe Danone(1) 21,956 135,920 L'Oreal SA 18,864 163,073 PPR SA 27,484 119,770 Renault SA 17,462 229,816 Societe Generale(1) 35,214 433,876 Total SA 35,116 169,560 Vinci SA(1) 13,432 ---------- 229,958 ---------- GERMANY -- 9.1% 82,510 Allianz SE 16,990 176,650 BASF AG 24,482 100,590 Continental AG 13,102 257,380 Deutsche Boerse AG(1) 48,235 446,203 Fresenius Medical Care AG & Co. KGaA(1) 24,906 562,047 GEA Group AG(2) 20,366 111,236 K+S AG 22,718 163,430 Linde AG 21,377 129,772 Q-Cells AG(2) 18,124 176,260 SAP AG 8,985 133,560 Siemens AG 20,275 ---------- 239,560 ---------- GREECE -- 1.6% 639,160 National Bank of Greece SA 42,747 ---------- HONG KONG -- 1.9% 1,801,600 Esprit Holdings Ltd.(1) 27,195 1,156,800 Hang Seng Bank Ltd.(1) 22,142 ---------- 49,337 ---------- INDIA -- 3.0% 241,880 Bharat Heavy Electricals Ltd. 16,471 1,064,920 Bharti Airtel Ltd.(2) 25,302 325,160 DLF Ltd. 7,762 278,270 Housing Development Finance Corp. Ltd. 19,667 413,400 Tata Consultancy Services Ltd. 10,630 ---------- 79,832 ---------- ITALY -- 2.8% 308,779 ENI SpA 11,034 415,570 Fiat SpA 11,443 338,140 Finmeccanica SpA 10,095 1,014,744 Saipem SpA 40,906 ---------- 73,478 ---------- - ------ 7 International Growth Shares ($ IN THOUSANDS) Value JAPAN -- 15.0% 380,900 Canon, Inc. $ 20,051 691,000 Daikin Industries Ltd. 35,587 2,030 East Japan Railway Co. 16,789 86,500 Fanuc Ltd. 9,048 265,200 Ibiden Co. Ltd. 20,972 876,000 Isuzu Motors Ltd. 4,058 4,310 Japan Tobacco Inc. 24,405 1,064,500 Kuraray Co. Ltd. 13,091 224,100 Makita Corp. 9,970 3,067,000 Marubeni Corp. 23,541 70,800 Nintendo Co., Ltd. 43,507 1,930,000 Nippon Yusen Kabushiki Kaisha 16,754 8,995 NTT DoCoMo, Inc. 14,275 5,070 Sony Financial Holdings Inc.(2) 19,158 1,611,000 Sumitomo Chemical Co., Ltd. 13,745 761,000 Sumitomo Heavy Industries Ltd. 8,270 2,180,000 Sumitomo Metal Industries Ltd. 9,667 639,000 Sumitomo Realty & Development Co. Ltd. 19,411 372,900 Terumo Corp. 18,833 578,500 Toyota Motor Corp. 32,564 192,330 Yamada Denki Co. Ltd. 22,277 ---------- 395,973 ---------- MALAYSIA -- 0.5% 4,157,100 Bumiputra -- Commerce Holdings Bhd 13,269 ---------- MEXICO -- 1.4% 601,332 America Movil, SAB de CV ADR 37,078 ---------- NETHERLANDS -- 1.6% 193,000 ASML Holding N.V. 6,699 175,020 CNH Global N.V. 10,734 371,910 Heineken N.V. 24,326 ---------- 41,759 ---------- NORWAY -- 2.0% 412,200 Aker Kvaerner ASA 11,747 947,550 StatoilHydro ASA(1) 30,798 246,510 Yara International ASA 9,368 ---------- 51,913 ---------- PEOPLE'S REPUBLIC OF CHINA -- 1.2% 4,074,000 Agile Property Holdings Ltd. 8,119 5,234,500 China Merchants Bank Co., Ltd. Cl H 24,293 ---------- 32,412 ---------- Shares ($ IN THOUSANDS) Value SINGAPORE -- 1.6% 2,936,000 Keppel Corp. Ltd. $ 27,328 2,673,000 Oversea-Chinese Banking Corp. 15,765 ---------- 43,093 ---------- SOUTH AFRICA -- 1.0% 215,309 Anglo American plc 14,579 698,990 MTN Group Ltd. 14,080 ---------- 28,659 ---------- SPAIN -- 3.9% 1,197,450 Banco Bilbao Vizcaya Argentaria SA(1) 29,689 799,510 Cintra Concesiones de Infraestructuras de Transporte SA(1) 12,782 36,225 Cintra Concesiones de Infraestructuras de Transporte SA Entitlement Shares 578 452,929 Inditex SA 31,458 882,490 Telefonica SA 29,554 ---------- 104,061 ---------- SWITZERLAND -- 11.4% 1,171,625 ABB Ltd. 34,460 297,129 Compagnie Financiere Richemont SA Cl A 20,426 305,880 Holcim Ltd. 32,771 560,230 Julius Baer Holding AG 47,035 86,090 Nestle SA 41,196 444,585 Novartis AG 25,203 162,019 Roche Holding AG 30,794 85,560 Sonova Holding AG 9,161 161,223 Syngenta AG 39,950 393,614 UBS AG 19,800 ---------- 300,796 ---------- TAIWAN (REPUBLIC OF CHINA) -- 1.4% 7,381,000 AU Optronics Corp. 14,428 3,578,760 Hon Hai Precision Industry Co., Ltd. 22,932 ---------- 37,360 ---------- TURKEY -- 0.6% 1,884,390 Turkiye Garanti Bankasi AS 16,562 ---------- UNITED KINGDOM -- 13.0% 553,480 Admiral Group plc 11,866 751,390 AMEC plc 11,894 506,491 Barclays plc 5,870 1,990,499 BG Group plc 41,712 159,261 British Sky Broadcasting Group plc 2,049 2,177,296 Burberry Group plc 25,769 773,161 Capita Group plc 11,793 - ------ 8 International Growth Shares ($ IN THOUSANDS) Value 557,850 easyJet plc(2) $ 6,452 319,982 GlaxoSmithKline plc 8,449 312,899 HSBC Holdings plc 5,345 2,377,050 International Power plc 22,810 2,187,567 Man Group plc 25,056 2,318,694 Man Group plc Cl B 3,246 521,091 Reckitt Benckiser Group plc 30,956 601,980 Reed Elsevier plc 7,569 970,040 Scottish and Southern Energy plc 31,696 4,360,609 Tesco plc 42,987 2,232,960 TUI Travel plc(2) 12,636 9,260,930 Vodafone Group plc 34,669 ---------- 342,824 ---------- TOTAL COMMON STOCKS (Cost $1,912,898) 2,628,640 ---------- Temporary Cash Investments -- 0.4% Repurchase Agreement, Credit Suisse First Boston, Inc., (collateralized by various U.S. Treasury obligations, 6.25%, 8/15/23, valued at $9,990), in a joint trading account at 3.05%, dated 11/30/07, due 12/3/07 (Delivery value $9,803) (Cost $9,800) 9,800 ---------- Temporary Cash Investments -- Securities Lending Collateral(3) -- 5.0% Repurchase Agreement, BNP Paribas, (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.65%, dated 11/30/07, due 12/3/07 (Delivery value $75,029) 75,000 Repurchase Agreement, Deutsche Bank Securities, Inc., (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.56%, dated 11/30/07, due 12/3/07 (Delivery value $17,405) 17,398 Repurchase Agreement, Lehman Brothers, Inc., (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.64%, dated 11/30/07, due 12/3/07 (Delivery value $40,015) 40,000 ---------- TOTAL TEMPORARY CASH INVESTMENTS -- SECURITIES LENDING COLLATERAL (Cost $132,398) 132,398 ---------- TOTAL INVESTMENT SECURITIES -- 105.0% (Cost $2,055,096) 2,770,838 ---------- OTHER ASSETS AND LIABILITIES -- (5.0)% (132,895) ---------- TOTAL NET ASSETS -- 100.0% $2,637,943 ========== Market Sector Diversification (as a % of net assets) Financials 23.0% Industrials 14.8% Consumer Discretionary 10.9% Materials 10.3% Consumer Staples 8.3% Information Technology 7.8% Energy 7.4% Health Care 7.0% Telecommunication Services 6.9% Utilities 3.2% Cash and Equivalents* 0.4% * Includes temporary cash investments, securities lending collateral and other assets and liabilities. Notes to Schedule of Investments ADR = American Depositary Receipt (1) Security, or a portion thereof, was on loan as of November 30, 2007. (2) Non-income producing. (3) Investments represent purchases made by the lending agent with cash collateral received through securities lending transactions. As of November 30, 2007, securities with an aggregate value of $2,452,114 (in thousands), which represented 93.0% of total net assets, were valued in accordance with alternative pricing procedures adopted by the Board of Directors. See Notes to Financial Statements. - ------ 9 PERFORMANCE Global Growth Total Returns as of November 30, 2007 Average Annual Returns Since Inception 1 year 5 years Inception Date INVESTOR CLASS 23.73% 19.50% 12.74% 12/1/98 MSCI WORLD FREE INDEX 12.71% 16.10% 5.93%(1) -- Institutional Class 23.99% 19.76% 5.49% 8/1/00 A Class(2) No sales charge* 23.47% 19.21% 11.35% With sales charge* 16.32% 17.80% 10.61% 2/5/99 B Class No sales charge* 22.51% -- 19.39% With sales charge* 18.51% -- 17.70% 12/1/05 C Class 22.54% 18.35% 13.04% 3/1/02 R Class 23.08% -- 20.53% 7/29/05 * Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. B Class shares redeemed within six years of purchase are subject to a CDSC that declines from 5.00% during the first year after purchase to 0.00% the sixth year after purchase. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. Please see the Share Class Information pages for more about the applicable sales charges for each share class. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied. (1) Since 11/30/98, the date nearest the Investor Class's inception for which data are available. (2) Prior to September 4, 2007, the A Class was referred to as the Advisor Class. Performance, with sales charge, prior to that date has been adjusted to reflect the A Class's current sales charge. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. - ------ 10 Global Growth Growth of $10,000 Over Life of Class $10,000 investment made December 1, 1998
![](https://capedge.com/proxy/N-CSR/0000872825-08-000005/growthglobalgrowth0801.gif)
One-Year Returns Over Life of Class Periods ended November 30 1999* 2000 2001 2002 2003 2004 2005 2006 2007 Investor Class 66.60% 8.81% -23.62% -12.78% 20.22% 15.59% 18.87% 19.30% 23.73% MSCI World Free Index 21.11% -7.64% -16.01% -15.27% 19.17% 17.43% 11.20% 20.28% 12.71% * From 12/1/98, the Investor Class's inception date. Index data from 11/30/98, the date nearest the Investor Class's inception for which data are available. Not annualized. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. - ------ 11 PORTFOLIO COMMENTARY Global Growth Portfolio Managers: Keith Creveling and Helen O'Donnell PERFORMANCE SUMMARY Global Growth gained 23.73%* during the 12 months ended November 30, 2007. The portfolio's benchmark, the MSCI World Free Index, advanced 12.71%. The portfolio also outpaced the average return of 15.93%** for the 86 funds in Lipper Inc.'s Global Large Cap Growth Funds category. Strong worldwide economic growth and a series of U.S. Federal Reserve rate cuts helped generate strong 12-month performance among global stocks. Overall, stock selection was a strong positive contributor to portfolio performance, particularly in the United States, Germany and Japan, all of which outperformed the benchmark. Our holdings in the United States made the greatest contribution to return, followed by Germany and Japan. Sweden, Taiwan and Finland detracted most from the portfolio's relative performance. Lagging holdings were the overriding factor in Sweden and Finland. The benchmark had no exposure to Taiwan, while our small exposure to that country generated a negative return. On a positive note, the portfolio benefited from solid performance in the emerging markets of Mexico, India and Russia, which were not included in the benchmark. ALL SECTORS SHOWED POSITIVE RETURNS On an absolute basis, all sectors in the portfolio generated positive total returns, and all but one sector (utilities) recorded double-digit gains. Compared to the benchmark, all portfolio sectors outperformed except the utilities area. Our stock selection efforts were particularly strong in the financials, industrials and energy sectors. Deutsche Boerse AG, the Germany-based owner of several securities exchanges, was the portfolio's top performer in the financials sector. The company's plans to acquire U.S.-based International Securities Exchange Holdings and create a massive derivatives market helped drive performance. In addition, Julius Baer Holdings, the Swiss wealth-management company, which was not included in the benchmark, advanced on strong profit growth and a robust inflow of assets from its client base. Top Ten Holdings as of November 30, 2007 % of net % of net assets as of assets as of 11/30/07 5/31/07 Deutsche Boerse AG 2.5% 1.9% Saipem SpA 1.8% 1.6% National Bank of Greece SA 1.7% 1.7% Julius Baer Holding AG 1.7% 1.4% Allergan, Inc. 1.6% 1.4% Societe Generale 1.6% 0.9% Colgate-Palmolive Co. 1.6% 1.1% Shoppers Drug Mart Corp. 1.6% -- Cisco Systems Inc. 1.5% 2.0% Hewlett-Packard Co. 1.5% 1.9% * All fund returns referenced in this commentary are for Investor Class shares. ** The Lipper Inc.'s Global Large Cap Growth Funds category average returns for the five-year period as of November 30, 2007, was 15.96%. Data provided by Lipper Inc. -- A Reuters Company. ©2007 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Lipper Fund Performance -- Performance data is total return, and is preliminary and subject to revision. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. - ------ 12 Global Growth Our industrials holdings also contributed favorably, primarily due to overweights and good stock selection in the electrical equipment and aerospace and defense industries. In the electrical equipment area, our overweighted positions in Vestas Wind Systems, a Danish supplier of wind power solutions, and ABB Ltd., a Zurich-based provider of power and automation technologies to utilities and industries, drove performance. In the aerospace area, shares of Precision Castparts (which was not included in the benchmark), an Oregon-based manufacturer of casts for airline engines, soared on strong demand, surging sales and stellar profit growth. In the energy sector's equipment and services group, Italy's Saipem was a strong contributor. The company's stock, which was not included in the benchmark, benefited from its focus on deepwater exploration projects, an area gaining attention as worldwide oil reserves are shrinking. The portfolio's information technology sector also contributed positively to performance. This primarily was due to impressive results from Japanese videogame manufacturer Nintendo. The stock, which was among the top performers in the portfolio, advanced on strong worldwide sales of its Wii game console. UTILITIES POSTED LAGGING RESULTS Although our exposure to the utilities sector was minimal, it nevertheless detracted from relative performance. Our underweight combined with faltering stocks led to lagging results versus the benchmark. OUTLOOK Global Growth seeks to invest in companies located in developed countries throughout the world, including the United States, exhibiting accelerating growth characteristics. The portfolio has broad exposure to high-quality growth companies in numerous markets, and we believe these companies will deliver solid returns, even during volatile market conditions. Types of Investments in Portfolio % of net % of net assets as of assets as of 11/30/07 5/31/07 Foreign Common Stocks 57.0% 58.3% Foreign Preferred Stocks -- 0.7% Domestic Common Stocks 41.6% 40.3% TOTAL EQUITY EXPOSURE 98.6% 99.3% Temporary Cash Investments 0.4% 0.8% Other Assets and Liabilities(1) 1.0% (0.1)% (1) Includes securities lending collateral and other assets and liabilities. Investments by Country as of November 30, 2007 % of net % of net assets as of assets as of 11/30/07 5/31/07 United States 41.6% 40.3% United Kingdom 7.9% 6.2% France 7.0% 7.0% Japan 6.5% 8.0% Switzerland 5.3% 9.3% Germany 4.9% 4.1% Canada 3.6% 0.8% Other Countries 21.8% 23.6% Cash and Equivalents(2) 1.4% 0.7% (2) Includes temporary cash investments, securities lending collateral and other assets and liabilities. - ------ 13 SCHEDULE OF INVESTMENTS Global Growth NOVEMBER 30, 2007 Shares ($ IN THOUSANDS) Value Common Stocks -- 98.6% AUSTRALIA -- 2.5% 194,960 BHP Billiton Ltd.(1) $ 7,408 93,030 CSL Ltd. 2,874 776,710 Oxiana Ltd.(1) 2,754 -------- 13,036 -------- AUSTRIA -- 1.1% 81,850 Erste Bank der oesterreichischen Sparkassen AG 5,904 -------- BELGIUM -- 1.8% 36,320 KBC Groupe 5,027 103,507 SES SA Fiduciary Depositary Receipt(2) 2,603 8,420 Umicore 1,974 -------- 9,604 -------- BRAZIL -- 1.3% 33,300 Bolsa de Mercadorias e Futuros -- BM&F SA(2) 448 166,800 NET Servicos de Comunicacao SA ADR 2,462 212,200 Redecard SA 3,855 -------- 6,765 -------- CANADA -- 3.6% 29,900 Research In Motion Ltd.(2) 3,403 147,460 Shoppers Drug Mart Corp. 8,091 74,531 Suncor Energy Inc. 7,127 -------- 18,621 -------- DENMARK -- 1.0% 53,365 Vestas Wind Systems AS(2) 5,046 -------- FINLAND -- 1.0% 96,460 Metso Oyj(1) 5,232 -------- FRANCE -- 7.0% 87,980 Accor SA(1) 7,459 18,990 ALSTOM Co. 4,265 49,708 JC Decaux SA 1,929 53,480 Societe Generale(1) 8,195 85,190 Total SA 6,895 27,190 Veolia Environnement 2,506 63,900 Vinci SA(1) 5,062 -------- 36,311 -------- Shares ($ IN THOUSANDS) Value GERMANY -- 4.9% 69,490 Deutsche Boerse AG(1) $ 13,023 112,370 Fresenius Medical Care AG & Co. KGaA 6,272 31,300 Linde AG 4,094 16,510 Q-Cells AG(2) 2,306 -------- 25,695 -------- GREECE -- 1.7% 135,340 National Bank of Greece SA 9,052 -------- HONG KONG -- 1.0% 345,200 Esprit Holdings Ltd. 5,211 -------- INDIA -- 0.9% 205,471 Bharti Airtel Ltd.(2) 4,882 -------- ITALY -- 1.8% 235,470 Saipem SpA 9,492 -------- JAPAN -- 6.5% 124,700 Makita Corp. 5,548 117,000 NGK Insulators Ltd. 3,618 9,000 Nintendo Co., Ltd. 5,531 1,085 Sony Financial Holdings Inc.(2) 4,099 550,000 Sumitomo Chemical Co., Ltd. 4,693 126,000 Sumitomo Realty & Development Co. Ltd. 3,828 56,100 Terumo Corp. 2,833 30,120 Yamada Denki Co. Ltd. 3,489 -------- 33,639 -------- LUXEMBOURG -- 0.3% 11,224 Millicom International Cellular SA(2) 1,339 -------- MALAYSIA -- 0.4% 591,000 Bumiputra -- Commerce Holdings Bhd 1,886 -------- MEXICO -- 1.3% 106,220 America Movil, SAB de CV ADR 6,549 -------- NETHERLANDS -- 2.7% 59,220 CNH Global N.V. 3,632 78,960 Heineken N.V. 5,165 54,290 Schlumberger Ltd. 5,073 -------- 13,870 -------- - ------ 14 Global Growth Shares ($ IN THOUSANDS) Value SPAIN -- 1.2% 253,550 Cintra Concesiones de Infraestructuras de Transporte SA $ 4,054 12,677 Cintra Concesiones de Infraestructuras de Transporte SA Entitlement Shares 202 44,850 Gamesa Corporacion Tecnologica SA 2,035 -------- 6,291 -------- SWITZERLAND -- 5.3% 234,170 ABB Ltd. 6,888 107,560 Julius Baer Holding AG 9,030 11,040 Nestle SA 5,283 15,060 Roche Holding AG 2,862 69,760 UBS AG 3,509 -------- 27,572 -------- TAIWAN (REPUBLIC OF CHINA) -- 1.5% 815,760 Hon Hai Precision Industry Co., Ltd. 5,227 262,150 Taiwan Semiconductor Manufacturing Co. Ltd. ADR 2,601 -------- 7,828 -------- TURKEY -- 0.3% 174,000 Turkiye Garanti Bankasi AS 1,529 -------- UNITED KINGDOM -- 7.9% 200,439 Admiral Group plc 4,297 567,808 Burberry Group plc 6,720 349,979 Capita Group plc 5,338 396,320 Compass Group plc 2,596 396,429 Man Group plc 4,541 453,062 Man Group plc Cl B 634 116,975 Reckitt Benckiser Group plc 6,949 102,930 Shire plc 2,443 776,000 Tesco plc 7,650 -------- 41,168 -------- UNITED STATES -- 41.6% 122,520 Activision, Inc.(2) 2,714 89,790 Adobe Systems Inc.(2) 3,784 75,640 Air Products & Chemicals, Inc. 7,491 125,390 Allergan, Inc. 8,407 110,660 American Express Co. 6,526 113,260 American Tower Corp. Cl A(2) 5,158 Shares ($ IN THOUSANDS) Value 60,990 Apollo Group, Inc. Cl A(2) $ 4,667 35,410 Apple Inc.(2) 6,452 170,500 Automatic Data Processing, Inc. 7,683 44,400 Bank of New York Mellon Corp. (The) 2,129 13,500 Charles River Laboratories(2) 858 58,940 Ciena Corp.(2) 2,592 283,890 Cisco Systems Inc.(2) 7,954 87,400 Coca-Cola Company (The) 5,428 101,690 Colgate-Palmolive Co. 8,143 103,200 Corrections Corp. of America(2) 3,149 138,500 CVS/Caremark Corp. 5,552 34,690 Deere & Co. 5,960 52,470 Devon Energy Corporation 4,345 53,990 Exelon Corporation 4,377 95,720 FMC Technologies Inc.(2) 5,321 145,860 General Electric Co. 5,585 10,500 Google Inc. Cl A(2) 7,277 153,850 Hewlett-Packard Co. 7,871 99,460 Hudson City Bancorp, Inc. 1,514 274,090 Intel Corp. 7,148 75,310 McDermott International, Inc.(2) 3,939 91,960 McDonald's Corporation 5,376 107,500 Merck & Co., Inc. 6,381 198,840 Microsoft Corporation 6,681 57,820 Monsanto Co. 5,746 215,410 News Corp. Cl B 4,670 80,670 Occidental Petroleum Corp. 5,629 86,590 Owens-Illinois Inc.(2) 3,887 48,560 Precision Castparts Corp. 7,154 51,490 Prudential Financial, Inc. 4,847 108,437 Schering-Plough Corp. 3,394 158,790 Schwab (Charles) Corp. 3,860 72,600 Southwestern Energy Company(2) 3,613 92,500 St. Jude Medical, Inc.(2) 3,677 78,440 Textron Inc. 5,416 67,540 Thermo Fisher Scientific Inc.(2) 3,893 -------- 216,248 -------- TOTAL COMMON STOCKS (Cost $393,035) 512,770 -------- - ------ 15 Global Growth Shares ($ IN THOUSANDS) Value Temporary Cash Investments -- 0.4% Repurchase Agreement, Deutsche Bank Securities, Inc., (collateralized by various U.S. Treasury obligations, 2.625%, 7/15/17, valued at $1,942), in a joint trading account at 3.10%, dated 11/30/07, due 12/3/07 (Delivery value $1,901) (Cost $1,900) $ 1,900 -------- Temporary Cash Investments -- Securities Lending Collateral(3) -- 4.1% Repurchase Agreement, BNP Paribas, (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.65%, dated 11/30/07, due 12/3/07 (Delivery value $8,003) 8,000 Repurchase Agreement, Deutsche Bank Securities, Inc., (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.56%, dated 11/30/07, due 12/3/07 (Delivery value $5,112) 5,110 Repurchase Agreement, Lehman Brothers, Inc., (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.64%, dated 11/30/07, due 12/3/07 (Delivery value $8,003) 8,000 -------- TOTAL TEMPORARY CASH INVESTMENTS -- SECURITIES LENDING COLLATERAL (Cost $21,110) 21,110 -------- TOTAL INVESTMENT SECURITIES -- 103.1% (Cost $416,045) 535,780 -------- OTHER ASSETS AND LIABILITIES -- (3.1)% (16,062) -------- TOTAL NET ASSETS -- 100.0% $519,718 ======== Market Sector Diversification (as a % of net assets) Financials 18.8% Information Technology 14.8% Industrials 14.5% Consumer Discretionary 10.8% Consumer Staples 10.1% Energy 9.1% Health Care 8.4% Materials 7.3% Telecommunication Services 3.5% Utilities 1.3% Cash and Equivalents* 1.4% * Includes temporary cash investments, securities lending collateral and other assets and liabilities. Notes to Schedule of Investments ADR = American Depositary Receipt. (1) Security, or a portion thereof, was on loan as of November 30, 2007. (2) Non-income producing. (3) Investments represent purchases made by the lending agent with cash collateral received through securities lending transactions. As of November 30, 2007, securities with an aggregate value of $251,105 (in thousands), which represented 48.3% of total net assets, were valued in accordance with alternative pricing procedures adopted by the Board of Directors. See Notes to Financial Statements. - ------ 16 PERFORMANCE Emerging Markets Total Returns as of November 30, 2007 Average Annual Returns Since Inception 1 year 5 years 10 years Inception Date INVESTOR CLASS 48.81% 38.14% 16.32% 13.93% 9/30/97 MSCI EM INDEX 45.57% 36.44% 14.76% 12.09% -- Institutional Class 49.21% 38.38% -- 21.64% 1/28/99 A Class(1) No sales charge* 48.61% 37.77% -- 18.10% With sales charge* 40.08% 36.13% -- 17.29% 5/12/99 B Class No sales charge* -- -- -- 4.28%(2) With sales charge* -- -- -- -0.72%(2) 9/28/07 C Class 47.39% 36.81% -- 26.48% 12/18/01 R Class -- -- -- 4.36%(2) 9/28/07 * Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. B Class shares redeemed within six years of purchase are subject to a CDSC that declines from 5.00% during the first year after purchase to 0.00% the sixth year after purchase. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. Please see the Share Class Information pages for more about the applicable sales charges for each share class. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied. (1) Prior to September 4, 2007, the A Class was referred to as the Advisor Class. Performance, with sales charge, prior to that date has been adjusted to reflect the A Class's current sales charge. (2) Total returns for periods less than one year are not annualized. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. The fund's performance may be affected by investments in initial public offerings. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. - ------ 17 Emerging Markets Growth of $10,000 Over 10 Years $10,000 investment made November 30, 1997
![](https://capedge.com/proxy/N-CSR/0000872825-08-000005/growthemergingmarkets0801.gif)
One-Year Returns Over 10 Years Periods ended November 30 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Investor Class -15.90% 61.03% -16.73% -10.28% -10.86% 46.26% 18.94% 33.10% 46.10% 48.81% MSCI EM Index -22.42% 45.49% -23.63% -7.37% 4.95% 40.87% 28.88% 33.13% 34.38% 45.57% Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. The fund's performance may be affected by investments in initial public offerings. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. - ------ 18 PORTFOLIO COMMENTARY Emerging Markets Portfolio Managers: Mark On and Patricia Ribeiro PERFORMANCE SUMMARY Emerging Markets gained 48.81%* during the 12 months ended November 30, 2007. The portfolio's benchmark, the MSCI EM Index, advanced 45.57%. Compared to its peers, Emerging Markets outperformed the average return of 41.98%** for the 257 funds in Lipper Inc.'s Emerging Markets Funds category. Strong global economic growth combined with a weak U.S. dollar helped generate strong 12-month performance among international stocks, particularly those from the world's emerging markets. Emerging market stocks significantly outperformed the developed markets, which, as measured by the MSCI EAFE Index, returned 17.30% for the reporting period. The portfolio's performance benefited from this trend, and from our stock selection across most market sectors. Overall, stock selection accounted for the portfolio's outperformance relative to the benchmark. On an absolute basis, all sectors the portfolio invested in posted positive returns and made positive contributions to performance. Compared with the benchmark, each of the portfolio's market sectors outperformed except materials and financials. The portfolio also derived a portion of its returns from participating in several initial public offerings (IPOs). INDIA, RUSSIA, MEXICO OUTPERFORMED From a country perspective, India, Russia and Mexico had the greatest positive influence on the portfolio's relative performance. Stock selection was the key contributor in all three markets. Strong stock selection in South Korea also contributed to the portfolio's outperformance. Brazil and China detracted from the portfolio's relative performance, with stock selection accounting for the shortfall. TECH, ENERGY, CONSUMER DISCRETIONARY LED ALL SECTORS Good stock selection helped make the information technology sector the top contributor to the portfolio's relative performance. Our stock picks and allocation decisions were particularly strong in the semiconductor industry, where underweighting South Korea's Samsung Electronics, which faced waning demand in the memory chip market, proved effective. Top Ten Holdings as of November 30, 2007 % of net % of net assets as of assets as of 11/30/07 5/31/07 Petroleo Brasileiro SA ADR 3.0% 2.0% China Mobile Ltd. ADR 2.3% 0.9% Cia Vale do Rio Doce ADR 2.1% 1.7% PT Bumi Resources Tbk 1.9% -- America Movil, SAB de CV ADR 1.8% 1.7% Turkiye Garanti Bankasi AS 1.7% 1.5% Samsung Electronics 1.6% 1.8% Focus Media Holding Ltd. ADR 1.5% 0.7% China National Building Material Co. Ltd. Cl H 1.4% 0.3% ICICI Bank Ltd. ADR 1.4% 1.3% * All fund returns referenced in this commentary are for Investor Class shares. ** The Lipper Inc.'s Emerging Markets Funds category average returns for the five- and 10-year periods as of November 30, 2007, were 34.72% and 14.16%, respectively. Data provided by Lipper Inc. -- A Reuters Company. ©2007 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Lipper Fund Performance -- Performance data is total return, and is preliminary and subject to revision. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. - ------ 19 Emerging Markets In the energy sector, good security selection--particularly in the oil, gas and consumable fuels industry--helped the portfolio outperform the benchmark. Similarly, our favorable stock choices led to outperformance for the portfolio's consumer discretionary sector. For example, our out-of-benchmark position in Parkson Retail Group, which operates a chain of department stores in China, benefited from the company's expansion plans and China's growing retail market. In the auto components industry, Nokian Renkaat Oyj, another position not represented in the benchmark, contributed strongly to relative performance. The Finnish tire manufacturer advanced on strong sales and profit growth, primarily in Russia. MATERIALS, FINANCIALS LAGGED The materials and financials sectors were the largest detractors from the portfolio's relative performance. This primarily was due to our underweighted positions in both areas. Specifically, our underweight to the outperforming metals and mining industry hurt relative performance in the materials sector. The financials sector was the portfolio's largest, yet underweights and poor stock selection in the insurance and capital markets segments detracted from the portfolio's performance. The subprime mortgage market mess reverberated globally during the reporting period and dragged down holdings such as Shin Kong Financial Holding, a Taiwanese life insurer that acknowledged a portion of its fixed income portfolio was backed by U.S. subprime mortgages. In addition, not having any exposure to diversified financial services companies hurt the portfolio's results relative to the benchmark. OUTLOOK Focusing almost exclusively on equity securities of companies located in emerging market countries, we seek out companies with earnings and revenues growing at an improving rate. We will continue to select stocks based on extensive company-level research that focuses on identifying accelerating growth characteristics. Types of Investments in Portfolio % of net % of net assets as of assets as of 11/30/07 5/31/07 Foreign Common Stocks and Rights 97.9% 96.5% Foreign Preferred Stocks -- 1.4% TOTAL EQUITY EXPOSURE 97.9% 97.9% Temporary Cash Investments 1.4% 2.6% Other Assets and Liabilities(1) 0.7% (0.5)% (1) Includes securities lending collateral and other assets and liabilities. Investments by Country as of November 30, 2007 % of net % of net assets as of assets as of 11/30/07 5/31/07 People's Republic of China 15.0% 5.8% South Korea 13.1% 14.9% Brazil 11.7% 13.3% India 9.2% 5.0% Russian Federation 7.5% 6.5% South Africa 7.0% 8.0% Taiwan (Republic of China) 6.9% 11.5% Mexico 4.7% 6.6% Indonesia 4.4% 2.5% Hong Kong 3.1% 4.2% Other Countries 15.3% 19.6% Cash and Equivalents(2) 2.1% 2.1% (2) Includes temporary cash investments, securities lending collateral and other assets and liabilities. - ------ 20 SCHEDULE OF INVESTMENTS Emerging Markets NOVEMBER 30, 2007 Shares ($ IN THOUSANDS) Value Common Stocks -- 97.9% BRAZIL -- 11.7% 37,300 Bolsa de Mercadorias e Futuros -- BM&F SA(1) $502 734,152 Cia Vale do Rio Doce ADR 25,387 364,552 Dufry South America Ltd. BDR(1) 10,498 717,840 Lojas Renner SA 16,777 550,454 LPS Brasil -- Consultoria de Imoveis SA(1) 8,546 328,300 Lupatech SA 9,135 416,400 Marisa SA(1) 2,484 750,600 Net Servicos de Comunicacao SA(1) 11,111 369,025 Petroleo Brasileiro SA ADR 35,537 653,400 Redecard SA 11,869 210,818 Totvs SA 7,156 ---------- 139,002 ---------- CHILE -- 2.6% 2,230,015 Cencosud SA 8,410 709,607 Compania Cervecerias Unidas SA 5,133 1,554,437 La Polar SA 11,736 367,645 Lan Airlines SA ADR(2) 5,423 ---------- 30,702 ---------- CZECH REPUBLIC -- 2.1% 190,973 CEZ AS 14,115 50,689 Komercni Banka AS 11,418 ---------- 25,533 ---------- EGYPT -- 0.9% 112,116 Orascom Construction Industries 10,223 ---------- HONG KONG -- 3.1% 7,090,000 AAC Acoustic Technology Holdings Inc.(1)(2) 9,600 299,121 China Mobile Ltd. ADR 27,417 ---------- 37,017 ---------- INDIA -- 9.2% 328,815 ABB India Ltd. 12,954 211,812 Bharat Heavy Electricals Ltd. 14,424 538,001 DLF Ltd. 12,843 279,851 ICICI Bank Ltd. ADR 16,933 610,693 JSW Steel Ltd. 15,587 6,730 Mundra Port and Special Economic Zone Ltd.(1) 157 577,404 Reliance Communication Ventures Ltd. 9,855 Shares ($ IN THOUSANDS) Value 218,834 Reliance Industries Ltd. $ 15,786 612,500 Rolta India Ltd. 11,305 ---------- 109,844 ---------- INDONESIA -- 4.4% 4,996,500 PT Astra International Tbk 13,384 24,086,000 PT Bank Mandiri Tbk 9,175 36,526,000 PT Bumi Resources Tbk 22,161 756,000 PT International Nickel Indonesia Tbk 7,636 ---------- 52,356 ---------- ISRAEL -- 0.6% 66,407 Elbit Systems Ltd. 3,766 350,387 Israel Chemicals Ltd. 3,738 ---------- 7,504 ---------- KAZAKHSTAN -- 0.7% 305,218 KazMunaiGas Exploration Production GDR 8,189 ---------- MALAYSIA -- 2.0% 4,118,200 Bumiputra - Commerce Holdings Bhd 13,145 2,073,300 Genting Bhd 4,920 4,584,500 Resorts World Bhd 5,192 ---------- 23,257 ---------- MEXICO -- 4.7% 343,441 America Movil, SAB de CV ADR 21,177 4,819,827 Axtel, SAB de CV(1)(2) 11,815 192,704 Grupo Aeroportuario del Pacifico, SAB de CV ADR 8,851 2,189,803 Grupo Financiero Banorte, SAB de CV 9,492 1,396,860 Urbi Desarrollos Urbanos, SAB de CV(1) 4,736 ---------- 56,071 ---------- PAKISTAN -- 0.6% 340,975 Oil & Gas Development Co. Ltd. GDR 6,649 ---------- PEOPLE'S REPUBLIC OF CHINA -- 15.0% 8,100,000 Agile Property Holdings Ltd.(2) 16,143 2,179,851 Alibaba.com Ltd.(1)(2) 11,185 10,638 Baidu.com, Inc. ADR(1) 4,063 11,259,000 China Construction Bank Cl H 10,891 26,804,000 China Gas Holdings Ltd.(2) 12,498 2,791,000 China Merchants Bank Co., Ltd. Cl H 12,953 3,906,000 China National Building Material Co. Ltd. Cl H 17,005 - ------ 21 Emerging Markets Shares ($ IN THOUSANDS) Value 9,312,000 China Petroleum & Chemical Corp. Cl H(2) $ 14,164 1,215,500 China Shenhua Energy Co. Ltd. Cl H 7,227 8,614,000 China Yurun Food Group Ltd.(2) 14,179 8,505,000 CNOOC Ltd. 15,683 306,121 Focus Media Holding Ltd. ADR(1)(2) 17,278 4,677,314 Nine Dragons Paper Holdings Ltd.(2) 11,799 1,332,000 Parkson Retail Group Ltd.(2) 14,133 ---------- 179,201 ---------- PERU -- 0.6% 107,243 Credicorp Ltd. 7,635 ---------- PHILIPPINES -- 1.6% 100,251,000 Alliance Global Group Inc.(1) 13,531 13,343,600 Robinsons Land Corp. 5,774 ---------- 19,305 ---------- POLAND -- 0.7% 42,272 BRE Bank SA(1) 8,450 ---------- RUSSIAN FEDERATION -- 7.5% 168,486 Mobile TeleSystems ADR 15,282 199,870 OAO Gazprom ADR(1) 10,493 119,794 OAO LUKOIL 10,333 312,483 OAO TMK GDR 13,547 30,236 OJSC MMC Norilsk Nickel ADR 8,754 351,032 OJSC Pharmstandard GDR(1) 8,251 2,323,974 Sberbank(1) 9,803 198,830 Uralkali GDR (Acquired 10/15/07-11/30/07, Cost $4,154) (1)(2)(3) 4,772 254,752 X5 Retail Group N.V. GDR(1) 7,993 ---------- 89,228 ---------- SOUTH AFRICA -- 7.0% 146,042 Anglo American plc 9,738 388,000 Barloworld Ltd. 6,489 6,314,987 Dimension Data Holdings plc(2) 7,918 669,512 Exxaro Resources Ltd. 10,211 267,575 Impala Platinum Holdings Limited 9,284 364,908 Kumba Iron Ore Ltd. 14,457 727,515 Murray & Roberts Holdings Ltd. 10,278 1,366,550 Pretoria Portland Cement Co. Ltd.(2) 9,077 274,304 Sun International Ltd. 5,717 ---------- 83,169 ---------- Shares ($ IN THOUSANDS) Value SOUTH KOREA -- 13.1% 59,035 Daelim Industrial Co., Ltd. $ 10,390 183,190 Doosan Infracore Co., Ltd. 6,509 167,460 GS Holdings Corp. 11,296 57,209 Hyundai Department Store Co. Ltd. 6,988 30,026 Hyundai Heavy Industries Co., Ltd. 15,350 101,790 LG.Philips LCD Co., Ltd.(1) 5,731 319,600 LIG Non-Life Insurance Co., Ltd. 7,920 46,964 MegaStudy Co., Ltd. 15,933 19,653 Mirae Asset Securities Co. Ltd.(1) 3,351 121,713 Modetour Network Inc. 6,720 55,160 NHN Corp.(1) 15,664 16,109 POSCO 10,176 31,104 Samsung Electronics 19,053 191,511 Shinhan Financial Group Co., Ltd. 10,430 13,360 Shinsegae Co. Ltd. 10,517 ---------- 156,028 ---------- TAIWAN (REPUBLIC OF CHINA) -- 6.9% 5,817,409 Asia Cement Corp. 8,502 6,432,000 AU Optronics Corp. 12,573 2,020,000 Catcher Technology Co. Ltd. 12,467 6,255,663 China Steel Corp. 8,224 2,340,000 Hon Hai Precision Industry Co., Ltd. 14,994 4,773,000 U-Ming Marine Transport Corp. 12,754 7,403,979 Wistron Corp. 12,787 ---------- 82,301 ---------- TURKEY -- 2.9% 874,020 Enka Insaat ve Sanayi AS 14,078 2,308,895 Turkiye Garanti Bankasi AS 20,293 ---------- 34,371 ---------- TOTAL COMMON STOCKS (Cost $824,429) 1,166,035 ---------- Temporary Cash Investments -- 1.4% Repurchase Agreement, Deutsche Bank Securities, Inc., (collateralized by various U.S. Treasury obligations, 2.625%, 7/15/17, valued at $16,863), in a joint trading account at 3.10%, dated 11/30/07, due 12/3/07 (Delivery value $16,504) (Cost $16,500) 16,500 ---------- - ------ 22 Emerging Markets Shares ($ IN THOUSANDS) Value Temporary Cash Investments -- Securities Lending Collateral(4) -- 4.9% Repurchase Agreement, BNP Paribas, (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.65%, dated 11/30/07, due 12/3/07 (Delivery value $20,008) $ 20,000 Repurchase Agreement, Deutsche Bank Securities, Inc., (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.56%, dated 11/30/07, due 12/3/07 (Delivery value $18,169) 18,162 Repurchase Agreement, Lehman Brothers, Inc., (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.64%, dated 11/30/07, due 12/3/07 (Delivery value $20,008) 20,000 ---------- TOTAL TEMPORARY CASH INVESTMENTS -- SECURITIES LENDING COLLATERAL (Cost $58,162) 58,162 ---------- TOTAL INVESTMENT SECURITIES -- 104.2% (Cost $899,091) 1,240,697 ---------- OTHER ASSETS AND LIABILITIES -- (4.2)% (49,688) ---------- TOTAL NET ASSETS -- 100.0% $1,191,009 ========== Market Sector Diversification (as a % of net assets) Financials 17.5% Materials 14.6% Energy 14.4% Consumer Discretionary 12.4% Information Technology 12.1% Industrials 11.8% Telecommunication Services 7.2% Consumer Staples 5.0% Utilities 2.2% Health Care 0.7% Cash and Equivalents* 2.1% * Includes temporary cash investments, securities lending collateral and other assets and liabilities. Notes to Schedule of Investments ADR = American Depositary Receipt BDR = Brazilian Depositary Receipt GDR = Global Depositary Receipt OJSC = Open Joint Stock Company (1) Non-income producing. (2) Security, or a portion thereof, was on loan as of November 30, 2007. (3) Security was purchased under Rule 144A of the Securities Act of 1933 or is a private placement and, unless registered under the Act or exempted from registration, may only be sold to qualified institutional investors. The aggregate value of restricted securities at November 30, 2007 was $4,772 (in thousands), which represented 0.4% of total net assets. (4) Investments represent purchases made by the lending agent with cash collateral received through securities lending transactions. As of November 30, 2007, securities with an aggregate value of $846,880 (in thousands), which represented 71.1% of total net assets, were valued in accordance with alternative pricing procedures adopted by the Board of Directors. See Notes to Financial Statements. - ------ 23 PERFORMANCE International Value Total Returns as of November 30, 2007 Average Annual Returns Since Inception 1 year 5 years 10 years Inception Date A CLASS(1) No sales charge* 23.44% 20.78% 8.43% 7.74% With sales charge* 16.31% 19.35% 7.79% 7.14% 3/31/97 MSCI EAFE INDEX 17.30% 21.31% 9.00% 8.67% -- Investor Class 23.55% -- -- 21.45% 4/3/06 Institutional Class 23.77% -- -- 21.68% 4/3/06 B Class(1) No sales charge* 22.51% 19.96% 7.71% 7.02% With sales charge* 18.51% 19.86% 7.71% 7.02% 3/31/97 C Class 22.28% -- -- 20.24% 4/3/06 R Class 22.91% -- -- 20.81% 4/3/06 * Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. B Class shares redeemed within six years of purchase are subject to a CDSC that declines from 5.00% during the first year after purchase to 0.00% the sixth year after purchase. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. Please see the Share Class Information pages for more about the applicable sales charges for each share class. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied. International Value acquired all the net assets of the Mason Street International Equity Fund on March 31, 2006, pursuant to a plan of reorganization approved by the acquired fund's shareholders on March 15, 2006. Performance information prior to April 1, 2006, is that of the Mason Street International Equity Fund. (1) Class returns would have been lower if fees had not been waived. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. Unless otherwise indicated, performance reflects A Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. - ------ 24 International Value Growth of $10,000 Over 10 Years $10,000 investment made November 30, 1997*
![](https://capedge.com/proxy/N-CSR/0000872825-08-000005/growthintlvalue0801.gif)
One-Year Returns Over 10 Years Periods ended November 30 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 A Class (no sales charge)** -0.96% 11.54% 0.00% -11.24% -10.87% 20.77% 21.40% 10.68% 28.36% 23.44% % MSCI EAFE Index 16.45% 21.10% -9.67 -19.13% -12.50% 24.22% 24.19% 13.25% 28.20% 17.30% * International Value A Class's initial investment is $9,425 to reflect the maximum 5.75% initial sales charge. ** Class returns would have been lower, along with ending value, if fees had not been waived. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. Unless otherwise indicated, performance reflects A Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. - ------ 25 PORTFOLIO COMMENTARY International Value Portfolio Managers: Gary Motyl and Guang Yang PERFORMANCE SUMMARY International Value returned 23.44%* for the 12 months ended November 30, 2007. Its benchmark, the MSCI EAFE Index, returned 17.30%. The portfolio's performance reflected the generally positive global economic and investing climate prevailing during the fiscal year (see the Market Perspective on page 2). In that environment, every sector contributed to performance on an absolute basis. Relative to the benchmark, contribution to return was broad based, driven by holdings benefiting from global economic growth. In addition, good stock picks and an underweight position in financials shares helped performance. However, an underweight position among materials shares detracted from relative results. KEY CONTRIBUTORS The key theme explaining the portfolio's outperformance was its exposure to firms benefiting from economic expansion and a rise in living standards around the world. For example, the top contributor to return for the year was China Shenhua Energy. The company is the largest coal producer in China, which relies heavily on coal-fired plants to fuel its rapid expansion. Other top-10 contributors to performance were Shanghai Electric Group, which is China's biggest power-equipment maker, and Cheung Kong Holdings, a Hong Kong-listed stock with exposure to the strong Hong Kong and Chinese real estate markets. You can also see this theme at work in the portfolio's telecommunication services holdings, which benefited from exposure to growing emerging market economies. Key contributors in this space included BCE, Telefonos de Mexico, China Telecom, Telenor, and Telefonica. Spanish firm Telefonica is a good example -- it's an overweight position that gained more than 60% for the year on strong mobile subscriber growth in South America and continued to generate strong free cash flow. In addition, the company owns fixed and mobile providers in the Czech Republic, Argentina, and Great Britain. Similarly, the industrial sector was home to a number of leading contributors to portfolio performance, including Danish firm Vestas Wind Systems. The stock is a long-held overweight position and one of the largest stakes in the portfolio. It's a leading provider of wind turbines, and continued to benefit from demand for alternative energy sources driven by record-high oil prices. Top Ten Holdings as of November 30, 2007 % of net % of net assets as of assets as of 11/30/07 5/31/07 Nintendo Co., Ltd. 2.7% 1.7% Telenor ASA 1.9% 1.7% E.On AG 1.8% 1.6% Telefonica SA ADR 1.8% 1.3% Cia Vale do Rio Doce ADR 1.6% 1.1% Vestas Wind Systems AS 1.4% 1.6% Rolls-Royce Group plc 1.4% 1.4%(1) Deutsche Post AG 1.3% 1.4% ING Groep N.V. CVA 1.3% 1.7% Cheung Kong Holdings Ltd. 1.3% 1.0% (1) Includes shares traded on all exchanges. *All fund returns referenced in this commentary are for A Class shares and are not reduced by sales charges. A Class shares are subject to a maximum sales charge of 5.75%. Had the sales charge been applied, returns would have been lower than those shown. - ------ 26 International Value MATERIALS DETRACTED The portfolio's performance relative to the benchmark would have been even better but for positioning among materials shares, where an overweight position in the paper & forest products industry limited relative results. The business climate for these shares was difficult during the fiscal year because of falling demand for their products and rising costs associated with raw material prices. Leading detractors in this industry segment were Norwegian paper products firm Norske Skogindustrier and Finnish firm UPM-Kymmene, the world's leading producer of magazine paper. While these stocks underperformed, they are a good example of our value-oriented investment process at work. We're looking for companies trading at a discount to our estimate of their value, and our long-term approach means we're willing to build positions in out-of-favor industries where we believe the prospects for an eventual turnaround are good. That process led us to hold an overweight position in what we believe is a temporarily beaten-down industry that's attractively valued and that we believe is well on its way to restructuring and consolidation. STARTING POINT FOR NEXT REPORTING PERIOD "Because we build the International Value portfolio stock by stock, our sector and industry allocations typically reflect where we're finding the best values in the market at a given time," explained portfolio manager Guang Yang. "As of November 30, we continued to see opportunity in the telecommunication and industrials sectors, which were our largest overweight positions. At the same time, our most significant underweight position was in financial shares. In part this is because financials make up almost 30% of our index and we're reluctant to concentrate the portfolio so heavily in a single sector. But it's also because of earnings and valuation concerns we have for a number of companies in the sector amid difficult business conditions for many banks and other financial firms." Types of Investments in Portfolio % of net % of net assets as of assets as of 11/30/07 5/31/07 Foreign Common Stocks 84.5% 92.5% Foreign Preferred Stocks 2.0% 1.6% TOTAL EQUITY EXPOSURE 86.5% 94.1% Temporary Cash Investments 12.9% 5.6% Other Assets and Liabilities 0.6% 0.3% Investments by Country as of November 30, 2007 % of net % of net assets as of assets as of 11/30/07 5/31/07 United Kingdom 18.3% 19.9% Japan 8.5% 8.6% France 8.2% 8.7% Germany 6.8% 6.9% Netherlands 6.2% 7.1% South Korea 4.8% 5.2% Spain 4.8% 4.4% Switzerland 3.8% 2.4% Hong Kong 3.4% 2.8% Other Countries 21.7% 28.1% Cash and Equivalents(1) 13.5% 5.9% (1) Includes temporary cash investments and other assets and liabilities. - ------ 27 SCHEDULE OF INVESTMENTS International Value NOVEMBER 30, 2007 Shares ($ IN THOUSANDS) Value Common Stocks -- 84.5% AUSTRALIA -- 1.7% 48,280 Alumina Ltd. $ 276 4,630 Australia & New Zealand Banking Group Ltd. 115 26,912 National Australia Bank Ltd. 913 ------- 1,304 ------- BELGIUM -- 0.2% 11,400 AGFA-Gevaert N.V. 126 ------- BERMUDA -- 1.3% 11,760 Ace, Ltd. 704 4,700 XL Capital Ltd. Cl A 275 ------- 979 ------- CANADA -- 0.5% 49,300 Domtar Corp.(1) 374 ------- DENMARK -- 1.4% 11,664 Vestas Wind Systems AS(1) 1,103 ------- FINLAND -- 1.3% 34,110 Stora Enso Oyj R Shares 562 20,660 UPM-Kymmene Oyj 437 ------- 999 ------- FRANCE -- 8.2% 4,160 Accor SA 353 24,219 AXA SA 983 8,110 Compagnie Generale des Etablissements Michelin Cl B 963 6,680 Electricite de France 813 21,700 France Telecom SA 823 8,483 Sanofi-Aventis 806 12,420 Suez SA 824 15,920 Thomson 248 3,880 Total SA 314 5,032 Valeo SA 254 ------- 6,381 ------- GERMANY -- 6.8% 4,310 BASF AG 597 15,080 Bayerische Motoren Werke AG 920 30,710 Deutsche Post AG 1,043 6,950 E.On AG 1,416 25,810 Infineon Technologies AG(1) 307 6,300 Siemens AG ADR 956 ------- 5,239 ------- Shares ($ IN THOUSANDS) Value HONG KONG -- 3.4% 54,300 Cheung Kong Holdings Ltd. $ 1,023 56,900 Hutchison Whampoa Ltd. 677 40,500 Swire Pacific Ltd. A Shares 550 146,000 Swire Pacific Ltd. B Shares 366 ------- 2,616 ------- ISRAEL -- 0.5% 19,490 Check Point Software Technologies Ltd.(1) 445 ------- ITALY -- 1.8% 21,370 ENI SpA 764 26,230 Mediaset SpA 256 42,150 UniCredito Italiano SpA 357 ------- 1,377 ------- JAPAN -- 8.5% 8,200 FUJIFILM Holdings Corp. 361 62,400 Hitachi Ltd. 436 6,600 Mabuchi Motor Co. Ltd. 428 22,000 Mitsubishi UFJ Financial Group, Inc. 216 9,000 Mitsubishi UFJ Financial Group, Inc. ADR 88 3,400 Nintendo Co., Ltd. 2,090 101 Nippon Telegraph & Telephone Corp. 457 17,600 Nomura Holdings, Inc. 315 11,900 Olympus Corp. 491 32,600 Sompo Japan Insurance Inc. 315 12,300 Sony Corp. 664 10,600 Takeda Pharmaceutical Co Ltd. 685 300 Toshiba Corp. 2 ------- 6,548 ------- MEXICO -- 1.1% 22,820 Telefonos de Mexico, SAB de CV ADR 851 ------- NETHERLANDS -- 6.2% 4,410 Akzo Nobel N.V. 339 27,040 ING Groep N.V. CVA 1,041 23,417 Koninklijke Philips Electronics N.V. 975 33,730 Reed Elsevier N.V. 622 21,145 Royal Dutch Shell plc Cl B 849 23,440 SBM Offshore N.V. 816 5,240 Wolters Kluwer N.V. 162 ------- 4,804 ------- - ------ 28 International Value Shares ($ IN THOUSANDS) Value NORWAY -- 2.1% 23,899 Norske Skogindustrier ASA $ 172 62,970 Telenor ASA 1,460 ------- 1,632 ------- PEOPLE'S REPUBLIC OF CHINA -- 1.7% 63,500 China Shenhua Energy Co. Ltd. Cl H 378 824,000 China Telecom Corp. Ltd. Cl H 659 400,000 Shanghai Electric Group Corp. Cl H 319 ------- 1,356 ------- PORTUGAL -- 0.7% 32,950 Portugal Telecom SGPS SA 449 4,641 PT Multimedia-Servicos de Telecomunicacoes e Multimedia, SGPS, SA 64 ------- 513 ------- SINGAPORE -- 1.1% 61,500 DBS Group Holdings Ltd. 854 ------- SOUTH KOREA -- 4.8% 10,360 Hyundai Motor Company 778 6,890 Kookmin Bank 498 13,780 Korea Electric Power Corp. 577 19,660 KT Corp. ADR 515 1,370 Samsung Electronics 839 16,530 SK Telecom Co. Ltd. ADR 524 ------- 3,731 ------- SPAIN -- 4.8% 41,710 Banco Santander Central Hispano SA 895 27,680 Iberdrola SA 456 27,430 Repsol YPF, SA 1,013 13,460 Telefonica SA ADR 1,355 ------- 3,719 ------- SWEDEN -- 2.8% 50,980 Atlas Copco AB A Shares 749 12,900 Nordea Bank AB 217 47,630 Nordea Bank AB FDR 793 18,570 Securitas AB B Shares 254 18,570 Securitas Direct AB B Shares(1) 78 18,570 Securitas Systems AB B Shares 59 ------- 2,150 ------- Shares ($ IN THOUSANDS) Value SWITZERLAND -- 3.8% 2,030 Nestle SA $ 971 16,660 Novartis AG 944 9,307 Swiss Reinsurance 687 6,520 UBS AG 328 ------- 2,930 ------- TAIWAN (REPUBLIC OF CHINA) -- 1.2% 16,044 Chunghwa Telecom Co. Ltd. ADR 320 302,082 Compal Electronics Inc. 350 148,733 Lite-On Technology Corp. 257 ------- 927 ------- TURKEY -- 0.3% 10,400 Turkcell Iletisim Hizmetleri AS ADR 284 ------- UNITED KINGDOM -- 18.3% 23,810 Aviva plc 334 92,850 BAE Systems plc 878 54,390 BP plc 659 63,150 British Sky Broadcasting Group plc 812 30,150 Burberry Group plc 357 56,630 Cadbury Schweppes plc 727 76,750 Compass Group plc 503 45,210 GKN plc 297 18,940 GlaxoSmithKline plc 500 58,200 HSBC Holdings plc 988 145,040 Kingfisher plc 455 32,590 Lloyds TSB Group plc 332 35,602 National Grid plc 601 195,070 Old Mutual plc 675 40,140 Pearson plc 616 139,260 Rentokil Initial plc 432 99,630 Rolls-Royce Group plc 1,081 74,010 Royal Bank of Scotland Group plc 698 16,746 Smiths Group plc 368 19,350 Standard Chartered plc 763 18,085 Unilever plc 663 230,903 Vodafone Group plc 864 61,640 Yell Group plc 527 ------- 14,130 ------- TOTAL COMMON STOCKS (Cost $38,735) 65,372 ------- - ------ 29 International Value Shares ($ IN THOUSANDS) Value Preferred Stocks -- 2.0% BRAZIL -- 2.0% 41,720 Cia Vale do Rio Doce ADR $ 1,207 7,470 Empresa Brasiliera de Aeronautica SA ADR 326 ------- TOTAL PREFERRED STOCKS (Cost $302) 1,533 ------- Temporary Cash Investments -- 12.9% Repurchase Agreement, Bank of America Securities, LLC, (collateralized by various U.S. Treasury obligations, 3.625%, 1/15/08, valued at $2,449), in a joint trading account at 3.00%, dated 11/30/07, due 12/3/07 (Delivery value $2,401) 2,400 Repurchase Agreement, Credit Suisse First Boston, Inc., (collateralized by various U.S. Treasury obligations, 6.25%, 8/15/23, valued at $3,873), in a joint trading account at 3.05%, dated 11/30/07, due 12/3/07 (Delivery value $3,801) 3,800 Repurchase Agreement, Merrill Lynch & Co., Inc., (collateralized by various U.S. Treasury obligations, 3.68%, 12/27/07, valued at $3,875), in a joint trading account at 3.05%, dated 11/30/07, due 12/3/07 (Delivery value $3,801) 3,800 ------- TOTAL TEMPORARY CASH INVESTMENTS (Cost $10,000) 10,000 ------- TOTAL INVESTMENT SECURITIES -- 99.4% (Cost $49,037) 76,905 ------- OTHER ASSETS AND LIABILITIES -- 0.6% 442 ------- TOTAL NET ASSETS -- 100.0% $77,347 ======= Market Sector Diversification (as a % of net assets) Financials 19.8% Consumer Discretionary 12.8% Telecommunication Services 11.1% Industrials 10.6% Information Technology 7.1% Energy 6.2% Utilities 6.1% Materials 5.1% Health Care 4.6% Consumer Staples 3.1% Cash and Equivalents* 13.5% * Includes temporary cash investments and other assets and liabilities. Notes to Schedule of Investments ADR = American Depositary Receipt CVA = Certificaten Van Aandelen FDR = Finnish Depositary Receipt (1) Non-income producing. As of November 30, 2007, securities with an aggregate value of $58,682 (in thousands), which represented 75.9% of total net assets, were valued in accordance with alternative pricing procedures adopted by the Board of Directors. See Notes to Financial Statements. - ------ 30 SHAREHOLDER FEE EXAMPLES (UNAUDITED) Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from June 1, 2007 to November 30, 2007 (except as noted). ACTUAL EXPENSES The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If you hold Investor Class shares of any American Century fund, or Institutional Class shares of the American Century Diversified Bond Fund, in an American Century account (i.e., not a financial intermediary or retirement plan account), American Century may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all PERSONAL ACCOUNTS (including American Century 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 Brokerage accounts, you are currently not subject to this fee. We will not charge the fee as long as you choose to manage your accounts exclusively online. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund's share class. The hypothetical 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. - ------ 31 Expenses Paid Beginning Ending During Account Account Period(1) Annualized Value Value 6/1/07 - Expense 6/1/07 11/30/07 11/30/07 Ratio(1) International Growth ACTUAL Investor Class $1,000 $1,080.70 $6.68 1.28% Institutional Class $1,000 $1,082.00 $5.64 1.08% Advisor Class $1,000 $1,079.40 $7.98 1.53% A Class $1,000 $1,080.10 $7.98 1.53% B Class $1,000 $1,076.20 $11.87 2.28% C Class $1,000 $1,075.90 $11.87 2.28% R Class $1,000 $1,077.90 $9.27 1.78% HYPOTHETICAL Investor Class $1,000 $1,018.65 $6.48 1.28% Institutional Class $1,000 $1,019.65 $5.47 1.08% Advisor Class $1,000 $1,017.40 $7.74 1.53% A Class $1,000 $1,017.40 $7.74 1.53% B Class $1,000 $1,013.64 $11.51 2.28% C Class $1,000 $1,013.64 $11.51 2.28% R Class $1,000 $1,016.14 $9.00 1.78% Global Growth ACTUAL Investor Class $1,000 $1,078.20 $6.77 1.30% Institutional Class $1,000 $1,079.30 $5.73 1.10% A Class $1,000 $1,076.30 $8.07 1.55% B Class $1,000 $1,073.00 $11.95 2.30% C Class $1,000 $1,072.30 $11.95 2.30% R Class $1,000 $1,075.00 $9.36 1.80% HYPOTHETICAL Investor Class $1,000 $1,018.55 $6.58 1.30% Institutional Class $1,000 $1,019.55 $5.57 1.10% A Class $1,000 $1,017.30 $7.84 1.55% B Class $1,000 $1,013.54 $11.61 2.30% C Class $1,000 $1,013.54 $11.61 2.30% R Class $1,000 $1,016.04 $9.10 1.80% (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 183, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. - ------ 32 Expenses Paid Beginning Ending During Account Account Period(1) Annualized Value Value 6/1/07 - Expense 6/1/07 11/30/07 11/30/07 Ratio(1) Emerging Markets ACTUAL Investor Class $1,000 $1,222.50 $9.03 1.62% Institutional Class $1,000 $1,223.50 $7.92 1.42% A Class $1,000 $1,220.50 $10.41 1.87% B Class $1,000 $1,042.80(2) $4.62(3) 2.62% C Class $1,000 $1,216.10 $14.56 2.62% R Class $1,000 $1,043.60(2) $3.74(3) 2.12% HYPOTHETICAL Investor Class $1,000 $1,016.95 $8.19 1.62% Institutional Class $1,000 $1,017.95 $7.18 1.42% A Class $1,000 $1,015.69 $9.45 1.87% B Class $1,000 $1,011.93(4) $13.21(4) 2.62% C Class $1,000 $1,011.93 $13.21 2.62% R Class $1,000 $1,014.44(4) $10.71(4) 2.12% (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 183, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. (2) Ending account value based on actual return from September 28, 2007 (commencement of sale) through November 30, 2007. (3) 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 63, the number of days in the period from September 28, 2007 (commencement of sale) through November 30, 2007, divided by 365, to reflect the period. Had the class been available for the full period, the expenses paid during the period would have been higher. (4) Ending account value and expenses paid during period assumes the class had been available throughout the entire period and are calculated using the class's annualized expense ratio listed in the table above. - ------ 33 Expenses Paid Beginning Ending During Account Account Period(1) Annualized Value Value 6/1/07 - Expense 6/1/07 11/30/07 11/30/07 Ratio(1) International Value ACTUAL Investor Class $1,000 $1,050.30 $6.68 1.30% Institutional Class $1,000 $1,051.20 $5.66 1.10% A Class (after waiver)(2) $1,000 $1,049.30 $7.19 1.40% A Class (before waiver) $1,000 $1,049.30(3) $7.96 1.55% B Class (after waiver)(2) $1,000 $1,045.90 $10.72 2.09% B Class (before waiver) $1,000 $1,045.90(3) $11.80 2.30% C Class $1,000 $1,045.00 $11.79 2.30% R Class $1,000 $1,046.70 $9.24 1.80% HYPOTHETICAL Investor Class $1,000 $1,018.55 $6.58 1.30% Institutional Class $1,000 $1,019.55 $5.57 1.10% A Class (after waiver)(2) $1,000 $1,018.05 $7.08 1.40% A Class (before waiver) $1,000 $1,017.30 $7.84 1.55% B Class (after waiver)(2) $1,000 $1,014.59 $10.56 2.09% B Class (before waiver) $1,000 $1,013.54 $11.61 2.30% C Class $1,000 $1,013.54 $11.61 2.30% R Class $1,000 $1,016.04 $9.10 1.80% (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 183, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. (2) During the six months ended November 30, 2007, the class received a partial waiver of its distribution and service fees. (3) Ending account value assumes the return earned after waiver. The return would have been lower had fees not been waived and may have resulted in a lower ending account value. - ------ 34 STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) International Global Emerging International Growth Growth Markets Value ASSETS Investment securities - -- at value (cost of $1,922,698, $394,935, $840,929 and $49,037, respectively) -- including $128,531, $28,070, $57,610 and $- of securities on loan, respectively $2,638,440 $514,670 $1,182,535 $76,905 Investments made with cash collateral received for securities on loan, at value (cost of $132,398, $21,110, $58,162 and $-, respectively) 132,398 21,110 58,162 -- ----------- ---------- ---------- ----------- Total investment securities, at value (cost of $2,055,096, $416,045, $899,091 and $49,037, respectively) 2,770,838 535,780 1,240,697 76,905 Cash -- 234 1,091 50 Foreign currency holdings, at value (cost of $2,874, $6, $5,811 and $5, respectively) 2,884 6 5,804 5 Receivable for investments sold 45,173 11,309 13,258 8 Receivable for capital shares sold 518 411 3 300 Dividends and interest receivable 4,001 616 1,562 168 ----------- ---------- ---------- ----------- 2,823,414 548,356 1,262,415 77,436 ----------- ---------- ---------- ----------- LIABILITIES Disbursements in excess of demand deposit cash 348 -- -- -- Payable for collateral received for securities on loan 132,398 21,110 58,162 -- Payable for investments purchased 49,957 6,973 11,688 -- Payable for capital shares redeemed -- 2 -- 9 Accrued management fees 2,701 547 1,541 75 Distribution fees payable 7 2 6 3 Service fees (and distribution fees -- Advisor Class, A Class and R Class) payable 60 4 9 2 ----------- ---------- ---------- ----------- 185,471 28,638 71,406 89 ----------- ---------- ---------- ----------- NET ASSETS $2,637,943 $519,718 $1,191,009 $77,347 =========== ========== ========== =========== See Notes to Financial Statements. - ------ 35 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS EXCEPT AS NOTED) International Global Emerging International Growth Growth Markets Value NET ASSETS CONSIST OF: Capital (par value and paid-in surplus) $1,776,637 $315,357 $ 724,652 $43,409 Accumulated undistributed net investment income (loss) 17,791 (42) 3,042 938 Undistributed net realized gain on investment and foreign currency transactions 129,036 84,670 125,278 5,128 Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies 714,479 119,733 338,037 27,872 ----------- ----------- ----------- ----------- $2,637,943 $519,718 $1,191,009 $77,347 =========== =========== =========== =========== INVESTOR CLASS, $0.01 PAR VALUE ($ AND SHARES IN FULL) Net assets $2,267,093,056 $481,553,351 $1,070,138,397 $3,043,927 Shares outstanding 152,435,490 37,945,883 84,333,974 265,144 Net asset value per share $14.87 $12.69 $12.69 $11.48 INSTITUTIONAL CLASS, $0.01 PAR VALUE ($ AND SHARES IN FULL) Net assets $80,452,140 $16,297,521 $74,896,772 $45,262,332 Shares outstanding 5,394,335 1,273,992 5,798,290 3,935,852 Net asset value per share $14.91 $12.79 $12.92 $11.50 ADVISOR CLASS, $0.01 PAR VALUE ($ AND SHARES IN FULL) Net assets $241,578,575 N/A N/A N/A Shares outstanding 16,299,576 N/A N/A N/A Net asset value per share $14.82 N/A N/A N/A A CLASS, $0.01 PAR VALUE ($ AND SHARES IN FULL) Net assets $34,138,899 $18,401,691 $36,794,559 $24,558,179 Shares outstanding 2,300,787 1,465,401 2,968,112 2,138,031 Net asset value per share $14.84 $12.56 $12.40 $11.49 Maximum offering price (net asset value divided by 0.9425) $15.75 $13.33 $13.16 $12.19 B CLASS, $0.01 PAR VALUE ($ AND SHARES IN FULL) Net assets $3,319,574 $638,906 $53,837 $4,058,842 Shares outstanding 226,194 51,108 4,249 363,670 Net asset value per share $14.68 $12.50 $12.67 $11.16 C CLASS, $0.01 PAR VALUE ($ AND SHARES IN FULL) Net assets $7,318,465 $2,624,593 $9,098,265 $221,712 Shares outstanding 501,246 215,804 751,828 19,504 Net asset value per share $14.60 $12.16 $12.10 $11.37 R CLASS, $0.01 PAR VALUE ($ AND SHARES IN FULL) Net assets $4,042,421 $201,916 $26,887 $201,820 Shares outstanding 272,871 15,996 2,120 17,668 Net asset value per share $14.81 $12.62 $12.68 $11.42 See Notes to Financial Statements. - ------ 36 STATEMENT OF OPERATIONS YEAR ENDED NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) International Global Emerging International Growth Growth Markets Value INVESTMENT INCOME (LOSS) INCOME: Dividends (net of foreign taxes withheld of $4,989, $454, $1,793 and $175, respectively) $ 56,613 $ 7,176 $ 20,782 $ 2,068 Interest and other income 375 151 1,175 170 Securities lending 3,026 237 935 -- --------- --------- --------- --------- 60,014 7,564 22,892 2,238 --------- --------- --------- --------- EXPENSES: Management fees 33,295 6,157 14,302 810 Distribution fees: Advisor Class 560 -- -- -- A Class -- 11 28 -- B Class 23 3 -- 32 C Class 50 12 42 1 Service fees: Advisor Class 560 -- -- -- A Class -- 11 28 -- B Class 8 1 -- 11 C Class 17 4 14 -- Distribution and service fees: Advisor Class 167 -- -- -- A Class 78 11 20 55 A Class (old) (Note 10) -- 14 -- -- R Class 15 -- -- -- Directors' fees and expenses 59 9 16 2 Other expenses 263 11 9 -- --------- --------- --------- --------- 35,095 6,244 14,459 911 --------- --------- --------- --------- Amount waived -- -- -- (42) --------- --------- --------- --------- 35,095 6,244 14,459 869 --------- --------- --------- --------- NET INVESTMENT INCOME (LOSS) 24,919 1,320 8,433 1,369 --------- --------- --------- --------- REALIZED AND UNREALIZED GAIN (LOSS) NET REALIZED GAIN (LOSS) ON: Investment transactions (net of foreign taxes accrued of $1,358, $240, $570 and $-, respectively) 470,033 79,288 111,033 4,686 Foreign currency transactions 115,259 9,085 12,907 784 --------- --------- --------- --------- 585,292 88,373 123,940 5,470 --------- --------- --------- --------- CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON: Investments (net of foreign taxes accrued of $(1,089), $286, $(3,299) and $-, respectively) (64,727) 5,746 193,247 5,510 Translation of assets and liabilities in foreign currencies 24,945 5,005 15,601 1,828 --------- --------- --------- --------- (39,782) 10,751 208,848 7,338 --------- --------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) 545,510 99,124 332,788 12,808 --------- --------- --------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $570,429 $100,444 $341,221 $14,177 ========= ========= ========= ========= See Notes to Financial Statements. - ------ 37 STATEMENT OF CHANGES IN NET ASSETS YEARS ENDED NOVEMBER 30, 2007 AND NOVEMBER 30, 2006 (AMOUNTS IN THOUSANDS) International Growth Global Growth Increase (Decrease) in Net Assets 2007 2006 2007 2006 OPERATIONS Net investment income (loss) $ 24,919 $ 13,732 $ 1,320 $ (228) Net realized gain (loss) 585,292 431,240 88,373 62,564 Change in net unrealized appreciation (depreciation) (39,782) 223,543 10,751 10,585 ---------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 570,429 668,515 100,444 72,921 ---------- ---------- ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income: Investor Class (16,995) (40,600) (1,908) (2,722) Institutional Class (1,199) (4,912) (56) (80) Advisor Class (1,634) (4,014) -- -- A Class (140) (391) (11) (16) A Class (old) (Note 10) -- -- (11) -- B Class -- (13) -- -- C Class -- (42) -- -- R Class (5) (24) -- -- From net realized gains: Investor Class -- -- (8,547) -- Institutional Class -- -- (266) -- A Class -- -- (113) -- A Class (old) (Note 10) -- -- (136) -- B Class -- -- (8) -- C Class -- -- (28) -- R Class -- -- (1) -- ---------- ---------- ---------- ---------- Decrease in net assets from distributions (19,973) (49,996) (11,085) (2,818) ---------- ---------- ---------- ---------- CAPITAL SHARE TRANSACTIONS Net increase (decrease) in net assets from capital share transactions (767,214) (553,900) (8,664) (22,870) ---------- ---------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS (216,758) 64,619 80,695 47,233 NET ASSETS Beginning of period 2,854,701 2,790,082 439,023 391,790 ---------- ---------- ---------- ---------- End of period $2,637,943 $2,854,701 $519,718 $439,023 ========== ========== ========== ========== Accumulated undistributed net investment income (loss) $17,791 $(11,917) $(42) $(3,027) ========== ========== ========== ========== See Notes to Financial Statements. - ------ 38 YEARS ENDED NOVEMBER 30, 2007 AND NOVEMBER 30, 2006 (AMOUNTS IN THOUSANDS) Emerging Markets Increase (Decrease) in Net Assets 2007 2006 OPERATIONS Net investment income (loss) $ 8,433 $ 6,296 Net realized gain (loss) 123,940 92,060 Change in net unrealized appreciation (depreciation) 208,848 71,275 ---------- --------- Net increase (decrease) in net assets resulting from operations 341,221 169,631 ---------- --------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income: Investor Class (6,964) (1,354) Institutional Class (1,223) (916) A Class (110) (6) C Class (9) -- From net realized gains: Investor Class (77,026) (38,795) Institutional Class (11,255) (18,743) A Class (1,526) (323) C Class (449) (145) ---------- --------- Decrease in net assets from distributions (98,562) (60,282) ---------- --------- CAPITAL SHARE TRANSACTIONS Net increase (decrease) in net assets from capital share transactions 326,166 175,844 ---------- --------- NET INCREASE (DECREASE) IN NET ASSETS 568,825 285,193 NET ASSETS Beginning of period 622,184 336,991 ---------- --------- End of period $1,191,009 $622,184 ========== ========= Undistributed net investment income $3,042 $4,164 ========== ========= See Notes to Financial Statements. - ------ 39 YEAR ENDED NOVEMBER 30, 2007, EIGHT MONTHS ENDED NOVEMBER 30, 2006 AND YEAR ENDED MARCH 31, 2006 (AMOUNTS IN THOUSANDS) International Value Nov. 30, Nov. 30, March 31, Increase (Decrease) in Net Assets 2007 2006(1) 2006 OPERATIONS Net investment income (loss) $ 1,369 $ 1,046 $ 3,019 Net realized gain (loss) 5,470 4,933 70,935 Change in net unrealized appreciation (depreciation) 7,338 1,099 (38,416) --------- --------- --------- Net increase (decrease) in net assets resulting from operations 14,177 7,078 35,538 --------- --------- --------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income: Investor Class (15) -- -- Institutional Class (1,222) -- -- A Class (614) -- (2,743) B Class (113) -- (23) C Class (1) -- -- R Class (1) -- -- From net realized gains: Investor Class (145) -- -- Institutional Class (11,690) -- -- A Class (6,476) -- (3,924) B Class (1,432) -- (86) C Class (14) -- -- R Class (9) -- -- --------- --------- --------- Decrease in net assets from distributions (21,732) -- (6,776) --------- --------- --------- CAPITAL SHARE TRANSACTIONS Net increase (decrease) in net assets from capital share transactions 24,619 (6,329) (177,608) --------- --------- --------- NET INCREASE (DECREASE) IN NET ASSETS 17,064 749 (148,846) NET ASSETS Beginning of period 60,283 59,534 208,380 --------- --------- --------- End of period $77,347 $60,283 $ 59,534 ========= ========= ========= Undistributed net investment income $938 $1,532 $496 ========= ========= ========= (1) The fund's fiscal year end was changed from March 31 to November 30, resulting in an eight-month annual reporting period (see Note 9). See Notes to Financial Statements. - ------ 40 NOTES TO FINANCIAL STATEMENTS NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION -- American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act) as an open-end management investment company. International Growth Fund (International Growth), Global Growth Fund (Global Growth), Emerging Markets Fund (Emerging Markets) and International Value Fund (International Value) (collectively, the funds) are four funds in a series issued by the corporation (see Note 9). The funds are diversified under the 1940 Act. International Growth, Global Growth and Emerging Markets' investment objective is to seek capital growth. International Value's investment objective is to seek long-term capital growth. International Growth pursues its objective by investing primarily in equity securities of foreign companies located in at least three developed countries (excluding the United States). Global Growth pursues its objective by investing primarily in equity securities of issuers in the United States and other developed countries. Emerging Markets invests at least 80% of its assets in securities of issuers in emerging market countries and companies that derive a significant portion of their business from emerging market countries. International Value pursues its objective by investing primarily in equity securities of foreign companies. International Value may also invest a portion of its assets in U.S. companies. The following is a summary of the funds' significant accounting policies. MULTIPLE CLASS -- International Growth is authorized to issue the Investor Class, the Institutional Class, the Advisor Class, the A Class, the B Class, the C Class and the R Class. Global Growth is authorized to issue the Investor Class, the Institutional Class, the A Class (formerly Advisor Class) (see Note 10), the B Class, the C Class and the R Class. Emerging Markets is authorized to issue the Investor Class, the Institutional Class, the A Class (formerly Advisor Class), the B Class, the C Class and the R Class. International Value is authorized to issue the Investor Class, the Institutional Class, the A Class, the B Class, the C Class and the R Class. The A Class may incur an initial sales charge. The A Class, B Class and C Class may be subject to a contingent deferred sales charge. The share classes differ principally in their respective sales charges and distribution and shareholder servicing expenses and arrangements. All shares of the funds represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the funds are allocated to each class of shares based on their relative net assets. Sale of Global Growth's B Class commenced on December 1, 2005. Sale of Emerging Market's B Class and R Class commenced on September 28, 2007. Sale of International Value's Investor Class, Institutional Class, C Class and R Class commenced on April 3, 2006. SECURITY VALUATIONS -- Securities traded primarily on a principal securities exchange are valued at the last reported sales price, or at the mean of the latest bid and asked prices where no last sales price is available. Depending on local convention or regulation, securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official close price. Debt securities not traded on a principal securities exchange are valued through a commercial pricing service or at the mean of the most recent bid and asked prices. Discount notes may be valued through a commercial pricing service or at amortized cost, which approximates fair value. Securities traded on foreign securities exchanges and over-the-counter markets are normally completed before the close of business on days that the New York Stock Exchange (the Exchange) is open and may also take place on days when the Exchange is not open. If an event occurs after the value of a security was established but before the net asset value per share was determined that was likely to materially change the net asset value, that security would be valued as determined in accordance with procedures adopted by the Board of Directors. If the funds determine that the market price of a portfolio security is not readily available, or that the valuation methods mentioned above do not reflect the security's fair value, such security is valued as determined by, or in accordance with procedures adopted by, the Board of Directors or its designee if such determination would materially impact a fund's net asset value. Certain other circumstances may cause the funds to use alternative procedures to value a security such as: a security has been declared in default; trading in a security has been halted during the trading day; or there is a foreign market holiday and no trading will commence. - ------ 41 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) SECURITY TRANSACTIONS -- For financial reporting purposes, security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The funds record the foreign tax expense, if any, on an accrual basis. The realized and unrealized tax provision reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively. INVESTMENT INCOME -- Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. SECURITIES ON LOAN -- International Growth, Global Growth and Emerging Markets may lend portfolio securities through their lending agent to certain approved borrowers in order to earn additional income. International Growth, Global Growth and Emerging Markets continue to recognize any gain or loss in the market price of the securities loaned and record any interest earned or dividends declared. FOREIGN CURRENCY TRANSACTIONS -- All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Realized and unrealized gains and losses from foreign currency translations arise from changes in currency exchange rates. Net realized and unrealized foreign currency exchange gains or losses occurring during the holding period of investment securities are a component of realized gain (loss) on foreign currency transactions and unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies, respectively. Certain countries may impose taxes on the contract amount of purchases and sales of foreign currency contracts in their currency. The funds record the foreign tax expense, if any, as a reduction to the net realized gain (loss) on foreign currency transactions. REPURCHASE AGREEMENTS -- The funds may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. Each repurchase agreement is recorded at cost. Each fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable each 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 each fund under each repurchase agreement. JOINT TRADING ACCOUNT -- Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, each fund, along with other registered investment companies having management agreements with ACIM or American Century Global Investment Management, Inc. (ACGIM), 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. INCOME TAX STATUS -- It is each fund's policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. The funds are no longer subject to examination by tax authorities for years prior to 2004. At this time, management has not identified any uncertain tax positions that would materially impact the financial statements. Accordingly, no provision has been made for federal or state income taxes. Interest and penalties associated with any federal or state income tax obligations, if any, are recorded as interest expense. DISTRIBUTIONS TO SHAREHOLDERS -- Distributions to shareholders are recorded on the ex-dividend date. Distributions from net investment income, if any, are generally declared and paid annually. Distributions from net realized gains, if any, are generally declared and paid twice per year. The funds may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act. - ------ 42 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) REDEMPTION -- The funds may impose a 2.00% redemption fee on shares held less than 60 days. The redemption fee may not be applicable to all classes. The redemption fee is recorded as a reduction in the cost of shares redeemed. The redemption fee is retained by the funds and helps cover transaction costs that long-term investors may bear when a fund sells securities to meet investor redemptions. INDEMNIFICATIONS -- Under the corporation's organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business, the funds enter into contracts that provide general indemnifications. The funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. The risk of material loss from such claims is considered by management to be remote. USE OF ESTIMATES -- The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. 2. FEES AND TRANSACTIONS WITH RELATED PARTIES On July 27, 2007, the Advisor Class shareholders of International Growth and the A Class (formerly Advisor Class, also referred to as "A Class (new)") shareholders of Global Growth and Emerging Markets approved a change to the class's fee structure. The change was approved by the Board of Directors on November 29, 2006 and March 7, 2007. Effective September 4, 2007, the fee structure change resulted in an increase of 0.25% in the unified management fee and a simultaneous decrease of 0.25% in the total distribution and service fee, resulting in no change to the total operating expense ratio of the class. MANAGEMENT FEES -- The corporation has entered into a Management Agreement with ACGIM (the investment advisor), under which ACGIM provides the funds with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The Agreement provides that all expenses of the funds, except brokerage commissions, taxes, interest, fees and expenses of those directors who are not considered "interested persons" as defined in the 1940 Act (including counsel fees) and extraordinary expenses, will be paid by ACGIM. The fee is computed and accrued daily based on the daily net assets of each specific class of shares of each fund and paid monthly in arrears. For funds with a stepped fee schedule, the rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account all of the investment advisor's assets under management in each fund's investment strategy (strategy assets) to calculate the appropriate fee rate for each fund. The strategy assets include each fund's assets and the assets of other clients of the investment advisor that are not in the American Century family of funds, but that have the same investment team and investment strategy. The strategy assets of International Growth includes the assets of NT International Growth Fund, one fund in a series issued by the corporation. The annual management fee schedule for International Growth ranges from 1.10% to 1.50% for the Investor Class, Advisor Class, A Class, B Class, C Class and R Class. Prior to September 4, 2007, the Advisor Class was 0.25% less at each point within the range for International Growth. The annual management fee schedule for Global Growth ranges from 1.05% to 1.30% for the Investor Class, A Class, B Class, C Class and R Class. The annual management fee schedule for Emerging Markets ranges from 1.25% to 1.85% for the Investor Class, A Class, B Class, C Class and R Class. Prior to September 4, 2007, the A Class (new) was 0.25% less at each point within the range for Global Growth and Emerging Markets. The annual management fee schedule for International Value ranges from 1.10% to 1.30% for the Investor Class, A Class, B Class, C Class and R Class. The Institutional Class of each fund is 0.20% less at each point within the range. - ------ 43 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) The effective annual management fee for each class of each fund for the year ended November 30, 2007, was as follows: Investor & C Institutional Advisor A B R International Growth 1.26% 1.06% 1.06% 1.26% 1.26% 1.26% Global Growth 1.30% 1.10% N/A 1.18% 1.30% 1.30% Emerging Markets 1.66% 1.46% N/A 1.50% 1.58% 1.58% International Value 1.30% 1.10% N/A 1.30% 1.30% 1.30% ACGIM has entered into a Subadvisory Agreement with ACIM (the subadvisor) on behalf of International Growth, Global Growth and Emerging Markets. The subadvisor makes investment decisions for the cash portion of International Growth, Global Growth and Emerging Markets in accordance with their investment objectives, policies and restrictions under the supervision of ACGIM and the Board of Directors. ACGIM pays all costs associated with retaining ACIM as the subadvisor of International Growth, Global Growth and Emerging Markets. ACGIM has entered into a Subadvisory Agreement with Templeton Investment Counsel, LLC (Templeton) on behalf of International Value. Templeton makes investment decisions for International Value in accordance with its investment objectives, policies, and restrictions under the supervision of ACGIM and the Board of Directors. ACGIM pays all costs associated with retaining Templeton as the subadvisor of International Value. DISTRIBUTION AND SERVICE FEES -- For International Growth, the Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the Advisor Class, A Class, B Class, C Class and R Class (collectively the International Growth plans), pursuant to Rule 12b-1 of the 1940 Act. The International Growth plans provide that the Advisor Class will pay American Century Investment Services, Inc. (ACIS) an annual distribution and service fee of 0.25%. Prior to September 4, 2007, the Board of Directors had adopted a Master Distribution and Shareholder Services Plan for the Advisor Class of International Growth, pursuant to Rule 12b-1 of the 1940 Act, which provided that the Advisor Class would pay ACIS an annual distribution fee of 0.25% and service fee of 0.25%. The International Growth plans provide that the A Class and the R Class will pay ACIS an annual distribution and service fee of 0.25% for the A Class and 0.50% for the R Class. The International Growth plans provide that the B Class and the C Class will each pay ACIS an annual distribution fee of 0.75% and service fee of 0.25%. For Global Growth and Emerging Markets, the Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, B 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 B Class and the C Class will each pay ACIS an annual distribution fee of 0.75% and service fee of 0.25%. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. Prior to September 4, 2007, the Board of Directors had adopted a Master Distribution and Shareholder Services Plan for the A Class (new) for Global Growth and Emerging Markets, pursuant to Rule 12b-1 of the 1940 Act, in which the A Class (new) paid ACIS an annual distribution fee of 0.25% and service fee of 0.25%. For International Value, the Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, B Class, C Class and R Class (collectively the International Value plans), pursuant to Rule 12b-1 of the 1940 Act. The International Value plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The International Value plans provide that the B Class and C Class will each pay ACIS an annual distribution fee of 0.75% and service fee of 0.25%. The International Value plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. - ------ 44 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) The fees are computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The distribution fee provides compensation for expenses incurred in connection with distributing shares of the classes including, but not limited to, payments to brokers, dealers, and financial institutions that have entered into sales agreements with respect to shares of the funds. The service fee provides compensation for shareholder and administrative services rendered by ACIS, its affiliates or independent third party providers for Advisor Class shares and prior to September 4, 2007, for A Class (new) shares. The service fee provides compensation for individual shareholder services rendered by broker/dealers or other independent financial intermediaries for A Class (new), A Class (old), B Class, C Class and R Class shares. ACIS has agreed to voluntarily waive a portion of its distribution and service fees through March 31, 2008, by 0.15% for the A Class and 0.21% for the B Class of International Value. For the year ended November 30, 2007, the A Class and B Class of International Value waived $32,784 and $8,861 ($ in full), respectively, of distribution and service fees. Fees incurred under the International Growth plans, the plans, and the International Value plans during the year ended November 30, 2007, are detailed in the Statement of Operations. RELATED PARTIES -- Certain officers and directors of the corporation are also officers and/or directors, and, as a group, controlling stockholders of American Century Companies, Inc. (ACC), the parent of the corporation's investment advisor, ACGIM, the corporation's subadvisor, ACIM, the distributor of the corporation, ACIS, and the corporation's transfer agent, American Century Services, LLC. Beginning in December 2006, the funds are eligible to invest in a money market fund for temporary purposes, which is managed by J.P. Morgan Investment Management, Inc. (JPMIM). JPMIM is a wholly owned subsidiary of JPMorgan Chase & Co. (JPM). JPM is an equity investor in ACC. The funds have a bank line of credit agreement with JPMorgan Chase Bank (JPMCB). International Growth, Global Growth and Emerging Markets have a securities lending agreement with JPMCB. JPMCB is a custodian of the funds and a wholly owned subsidiary of JPM. 3. INVESTMENT TRANSACTIONS Investment transactions, excluding short-term investments, for the year ended November 30, 2007, were as follows: International Global Emerging International Growth Growth Markets Value Purchases $3,576,387 $512,851 $962,656 $7,307 Proceeds from sales $4,345,192 $538,421 $724,062 $10,068 - ------ 45 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) 4. CAPITAL SHARE TRANSACTIONS Transactions in shares of the funds were as follows: Year ended Year ended November 30, 2007 November 30, 2006 Shares Amount Shares Amount International Growth INVESTOR CLASS/SHARES AUTHORIZED 1,000,000 1,000,000 ========= ========= Sold 22,606 $ 302,364 31,222 $ 343,306 Issued in reinvestment of distributions 1,168 14,427 3,469 34,698 Redeemed (64,757) (860,557)(1) (72,005) (780,967)(2) --------- ------------ --------- ------------ (40,983) (543,766) (37,314) (402,963) --------- ------------ --------- ------------ INSTITUTIONAL CLASS/SHARES AUTHORIZED 150,000 150,000 ========= ========= Sold 1,731 22,661 4,490 48,649 Issued in reinvestment of distributions 90 1,117 435 4,357 Redeemed (6,740) (89,101)(3) (19,888) (212,746)(4) --------- ------------ --------- ------------ (4,919) (65,323) (14,963) (159,740) --------- ------------ --------- ------------ ADVISOR CLASS/SHARES AUTHORIZED 100,000 100,000 ========= ========= Sold 7,416 98,766 10,987 120,231 Issued in reinvestment of distributions 121 1,489 373 3,722 Redeemed (18,992) (259,071)(5) (10,331) (112,654)(6) --------- ------------ --------- ------------ (11,455) (158,816) 1,029 11,299 --------- ------------ --------- ------------ A CLASS/SHARES AUTHORIZED 25,000 25,000 ========= ========= Sold 507 6,888 608 6,644 Issued in reinvestment of distributions 11 134 38 377 Redeemed (554) (7,490) (899) (9,623) --------- ------------ --------- ------------ (36) (468) (253) (2,602) --------- ------------ --------- ------------ B CLASS/SHARES AUTHORIZED 10,000 10,000 ========= ========= Sold 32 425 80 866 Issued in reinvestment of distributions -- -- 1 10 Redeemed (30) (398) (31) (330) --------- ------------ --------- ------------ 2 27 50 546 --------- ------------ --------- ------------ C CLASS/SHARES AUTHORIZED 10,000 10,000 ========= ========= Sold 108 1,470 128 1,397 Issued in reinvestment of distributions -- -- 3 32 Redeemed (129) (1,700) (156) (1,664) --------- ------------ --------- ------------ (21) (230) (25) (235) --------- ------------ --------- ------------ R CLASS/SHARES AUTHORIZED 5,000 5,000 ========= ========= Sold 165 2,253 140 1,533 Issued in reinvestment of distributions -- 4 2 20 Redeemed (66) (895) (154) (1,758) --------- ------------ --------- ------------ 99 1,362 (12) (205) --------- ------------ --------- ------------ Net increase (decrease) (57,313) $(767,214) (51,488) $(553,900) ========= ============ ========= ============ (1) Net of redemption fees of $183. (2) Net of redemption fees of $156. (3) Net of redemption fees of $65. (4) Net of redemption fees of $16. (5) Net of redemption fees of $87. (6) Net of redemption fees of $81. - ------ 46 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) Year ended Year ended November 30, 2007 November 30, 2006 Shares Amount Shares Amount Global Growth INVESTOR CLASS/SHARES AUTHORIZED 150,000 150,000 ======== ======== Sold 3,827 $ 44,774 5,161 $ 50,085 Issued in reinvestment of distributions 962 10,090 289 2,636 Redeemed (6,605) (75,173)(1) (8,373) (80,834)(2) -------- ------------ -------- ------------ (1,816) (20,309) (2,923) (28,113) -------- ------------ -------- ------------ INSTITUTIONAL CLASS/SHARES AUTHORIZED 5,000 5,000 ======== ======== Sold 664 7,441 219 2,130 Issued in reinvestment of distributions 30 322 9 80 Redeemed (226) (2,605)(3) (391) (3,851) -------- ------------ -------- ------------ 468 5,158 (163) (1,641) -------- ------------ -------- ------------ A CLASS/SHARES AUTHORIZED 15,000 5,000 ======== ======== Sold 258 3,045 332 3,165 Issued in connection with reclassification (Note 10) 845 9,866 -- -- Issued in reinvestment of distributions 12 124 1 13 Redeemed (185) (2,159) (215) (2,037)(4) -------- ------------ -------- ------------ 930 10,876 118 1,141 -------- ------------ -------- ------------ A CLASS (OLD)/SHARES AUTHORIZED NA 10,000 ======== ======== Sold 427 4,824 532 5,196 Issued in reinvestment of distributions 13 134 -- -- Redeemed in connection with reclassification (Note 10) (845) (9,866) -- -- Redeemed (100) (1,127) (27) (261) -------- ------------ -------- ------------ (505) (6,035) 505 4,935 -------- ------------ -------- ------------ B CLASS/SHARES AUTHORIZED 10,000 10,000 ======== ======== Sold 20 244 37 357 Issued in reinvestment of distributions 1 8 -- -- Redeemed (4) (46) (3) (32) -------- ------------ -------- ------------ 17 206 34 325 -------- ------------ -------- ------------ C CLASS/SHARES AUTHORIZED 10,000 5,000 ======== ======== Sold 134 1,518 82 772 Issued in reinvestment of distributions 2 22 -- -- Redeemed (24) (263) (31) (289) -------- ------------ -------- ------------ 112 1,277 51 483 -------- ------------ -------- ------------ R CLASS/SHARES AUTHORIZED 5,000 10,000 ======== ======== Sold 16 200 -- -- Issued in reinvestment of distributions -- 1 -- -- Redeemed (3) (38) -- -- -------- ------------ -------- ------------ 13 163 -- -- -------- ------------ -------- ------------ Net increase (decrease) (781) $ (8,664) (2,378) $(22,870) ======== ============ ======== ============ (1) Net of redemption fees of $18. (2) Net of redemption fees of $18. (3) Net of redemption fees of $2. (4) Net of redemption fees of $1. - ------ 47 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) Year ended Year ended November 30, 2007(1) November 30, 2006 Shares Amount Shares Amount Emerging Markets INVESTOR CLASS/SHARES AUTHORIZED 185,000 100,000 ======== ======== Sold 47,827 $ 504,521 35,516 $ 303,189 Issued in reinvestment of distributions 8,563 74,867 4,400 32,030 Redeemed (24,149) (254,670)(2) (14,582) (122,512)(3) -------- ------------ -------- ------------ 32,241 324,718 25,334 212,707 -------- ------------ -------- ------------ INSTITUTIONAL CLASS/SHARES AUTHORIZED 40,000 50,000 ======== ======== Sold 1,338 13,765 3,640 29,912 Issued in reinvestment of distributions 1,405 12,478 2,503 18,363 Redeemed (5,355) (51,169)(4) (11,341) (93,403)(5) -------- ------------ -------- ------------ (2,612) (24,926) (5,198) (45,128) -------- ------------ -------- ------------ A CLASS/SHARES AUTHORIZED 10,000 5,000 ======== ======== Sold 2,414 26,234 975 8,291 Issued in reinvestment of distributions 190 1,625 43 313 Redeemed (641) (6,494)(6) (232) (1,859)(7) -------- ------------ -------- ------------ 1,963 21,365 786 6,745 -------- ------------ -------- ------------ B CLASS/SHARES AUTHORIZED 10,000 N/A ======== ======== Sold 4 52 -------- ------------ C CLASS/SHARES AUTHORIZED 5,000 5,000 ======== ======== Sold 651 6,763 321 2,649 Issued in reinvestment of distributions 52 442 20 142 Redeemed (219) (2,274) (165) (1,271) -------- ------------ -------- ------------ 484 4,931 176 1,520 -------- ------------ -------- ------------ R CLASS/SHARES AUTHORIZED 10,000 N/A ======== ======== Sold 2 26 -------- ------------ -------- ------------ Net increase (decrease) 32,082 $ 326,166 21,098 $ 175,844 ======== ============ ======== ============ (1) September 28, 2007 (commencement of sale) through November 30, 2007 for the B Class and R Class. (2) Net of redemption fees of $1,726. (3) Net of redemption fees of $540. (4) Net of redemption fees of $20. (5) Net of redemption fees of $134. (6) Net of redemption fees of $30. (7) Net of redemption fees of $14. - ------ 48 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) Year ended Period ended Year ended November 30, 2007 November 30, 2006(1) March 31, 2006 Shares Amount Shares Amount Shares Amount International Value INVESTOR CLASS/SHARES AUTHORIZED 55,000 55,000 N/A ======= ======= ======== Sold 248 $ 2,766 30 $ 413 Issued in reinvestment of distributions 16 157 -- -- Redeemed (29) (314)(2) -- -- ------- ---------- ------- ---------- 235 2,609 30 413 ------- ---------- ------- ---------- INSTITUTIONAL CLASS/SHARES AUTHORIZED 55,000 55,000 N/A ======= ======= ======== Sold 159 1,650 2,474 31,954 Issued in reinvestment of distributions 1,355 12,912 -- -- Redeemed (52) (550)(3) -- -- ------- ---------- ------- ---------- 1,462 14,012 2,474 31,954 ------- ---------- ------- ---------- A CLASS/SHARES AUTHORIZED 55,000 55,000 179,529 ======= ======= ======== Sold 737 7,785 242 3,170 474 $ 5,502 Issued in reinvestment of distributions 697 6,655 -- -- 565 6,637 Redeemed (682) (7,201) (3,158) (40,813) (15,369) (188,758) ------- ---------- ------- ---------- -------- ---------- 752 7,239 (2,916) (37,643) (14,330) (176,619) ------- ---------- ------- ---------- -------- ---------- B CLASS/SHARES AUTHORIZED 5,000 5,000 90,471 ======= ======= ======== Sold 55 547 30 385 54 604 Issued in reinvestment of distributions 161 1,506 -- -- 9 108 Redeemed (158) (1,631) (117) (1,501) (150) (1,701) ------- ---------- ------- ---------- -------- ---------- 58 422 (87) (1,116) (87) (989) ------- ---------- ------- ---------- -------- ---------- C CLASS/SHARES AUTHORIZED 50,000 50,000 N/A ======= ======= ======== Sold 19 199 3 38 Issued in reinvestment of distributions 2 15 -- -- Redeemed (4) (38) -- -- ------- ---------- ------- ---------- 17 176 3 38 ------- ---------- ------- ---------- R CLASS/SHARES AUTHORIZED 5,000 5,000 N/A ======= ======= ======== Sold 18 188 2 25 Issued in reinvestment of distributions 1 10 -- -- Redeemed (3) (37) -- -- ------- ---------- ------- ---------- 16 161 2 25 ------- ---------- ------- ---------- -------- ---------- Net increase (decrease) 2,540 $24,619 (494) $ (6,329) (14,417) $(177,608) ======= ========== ======= ========== ======== ========== (1) April 3, 2006 (commencement of sale) through November 30, 2006 for Investor Class, Institutional Class, C Class and R Class. April 1, 2006 through November 30, 2006 for A Class and B Class. International Value's fiscal year end was changed from March 31 to November 30, resulting in an eight-month annual reporting period (see Note 9). (2) Net of redemption fees of $3. (3) Net of redemption fees of $1. - ------ 49 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) 5. SECURITIES LENDING As of November 30, 2007, securities in International Growth, Global Growth and Emerging Markets valued at $128,531, $28,070 and $57,610, respectively, were on loan through the lending agent, JPMCB, to certain approved borrowers. JPMCB receives and maintains collateral in the form of cash and/or acceptable securities as approved by ACIM or ACGIM. Cash collateral is invested in authorized investments by the lending agent in a pooled account. The value of cash collateral received at period end is disclosed in the Statement of Assets and Liabilities and investments made with the cash by the lending agent are listed in the Schedule of Investments. Any deficiencies or excess of collateral must be delivered or transferred by the member firms no later than the close of business on the next business day. The total value of all collateral received, at this date, was $132,398, $28,835 and $58,162, respectively. International Growth, Global Growth and Emerging Markets' risks in securities lending are that the borrower may not provide additional collateral when required or return the securities when due. If the borrower defaults, receipt of the collateral by International Growth, Global Growth and Emerging Markets may be delayed or limited. 6. BANK LINE OF CREDIT International Growth, Global Growth and Emerging Markets, along with certain other funds managed by ACIM or ACGIM, have a $500 million unsecured bank line of credit agreement (the agreement) with JPMCB. International Value entered into the agreement on December 13, 2006. The funds may borrow money for temporary or emergency purposes to fund shareholder redemptions. Borrowings under the agreement bear interest at the Federal Funds rate plus 0.40%. The funds did not borrow from the line during the year ended November 30, 2007. Effective December 12, 2007, the funds, along with certain other funds managed by ACIM or ACGIM, have a $500 million unsecured bank line of credit agreement with Bank of America, N.A. (the Bank of America agreement). The funds may borrow money for temporary or emergency purposes to fund shareholder redemptions. Borrowings under the Bank of America agreement bear interest at the Federal Funds rate plus 0.40%. 7. RISK FACTORS There are certain risks involved in investing in foreign securities. These risks include those resulting from future adverse political, social, and economic developments, fluctuations in currency exchange rates, the possible imposition of exchange controls, and other foreign laws or restrictions. Investing in emerging markets may accentuate these risks. Emerging Market's performance may be affected by investments in initial public offerings (IPOs). The impact of IPOs on a fund's performance depends on the strength of the IPO market and the size of the fund. IPOs may have less impact on a fund's performance as its assets grow. 8. FEDERAL TAX INFORMATION On December 18, 2007, International Growth, Emerging Markets and International Value declared and paid the following per-share distributions from net investment income to shareholders of record on December 17, 2007: Investor Institutional A B C R International Growth $0.0843 $0.1124 $0.0492 -- -- $0.0141 Emerging Markets $0.1027 $0.1265 $0.0729 -- -- $0.0432 International Value $0.2361 $0.2585 $0.2082 $0.1244 $0.1244 $0.1803 On December 18, 2007, International Growth, Global Growth and International Value declared and paid a per-share distribution from net realized gains to shareholders of record on December 17, 2007 of $0.7403, $1.9888 and $0.5580, respectively, for each class of the funds. On December 18, 2007, Emerging Markets declared and paid a per-share distribution from net realized gains to shareholders of record on December 17, 2007 of $1.0786 for the Investor Class, Institutional Class, A Class and R Class and $1.0623 for the B Class and C Class. - ------ 50 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) The tax character of distributions paid during the years ended November 30, 2007 and November 30, 2006 for International Growth, Global Growth and Emerging Markets were as follows: International Growth Global Growth Emerging Markets 2007 2006 2007 2006 2007 2006 DISTRIBUTIONS PAID FROM Ordinary income $19,973 $49,996 $1,986 $2,818 $64,774 $38,186 Long-term capital gain -- -- $9,099 -- $33,788 $22,096 The tax character of distributions paid during the year ended November 30, 2007, the eight months ended November 30, 2006 and the year ended March 31, 2006 for International Value were as follows: International Value Nov. 30, 2007 Nov. 30, 2006(1) March 31, 2006 DISTRIBUTIONS PAID FROM Ordinary income $3,184 -- $2,768 Long-term capital gain $18,548 -- $4,008 (1) April 1, 2006 through November 30, 2006, International Value's fiscal year end was changed from March 31 to November 30, resulting in an eight-month annual reporting period. 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 November 30, 2007, the components of distributable earnings on a tax-basis and the federal tax cost of investments were as follows: International Global Emerging International Growth Growth Markets Value Federal tax cost of investments $2,065,967 $416,129 $904,079 $49,988 ============== ========= ========= ============== Gross tax appreciation of investments $719,073 $121,250 $349,266 $28,320 Gross tax depreciation of investments (14,202) (1,599) (12,648) (1,403) -------------- --------- --------- -------------- Net tax appreciation (depreciation) of investments $704,871 $119,651 $336,618 $26,917 ============== ========= ========= ============== Net tax appreciation (depreciation) on translation of assets and liabilities in foreign currencies $(1,196) $(38) $(3,588) $4 -------------- --------- --------- -------------- Net tax appreciation (depreciation) $703,675 $119,613 $333,030 $26,921 ============== ========= ========= ============== Undistributed ordinary income $18,363 $24,420 $63,284 $2,487 Accumulated long-term gains $139,372 $60,334 $70,118 $4,542 Currency loss deferrals $(104) $(6) $(75) $(12) The difference between book-basis and tax-basis cost and unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales, return of capital dividends and on investments in passive foreign investment companies. The currency loss deferrals listed above represent net foreign currency losses incurred in the one-month period ended November 30, 2007. The funds have elected to treat such losses as having been incurred in the following fiscal year for federal income tax purposes. - ------ 51 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) 9. REORGANIZATION PLAN As of the close of business on March 31, 2006, International Value acquired all of the net assets of the Mason Street International Equity Fund (International Equity), one fund in a series issued by Mason Street Funds, Inc., pursuant to a plan of reorganization approved by the acquired fund's shareholders on March 15, 2006. International Value is maintaining the financial statements and performance history of International Equity. International Value's fiscal year end changed from March 31 to November 30. Prior to the reorganization, International Equity had A Class and B Class shares. At the close of business and as a result of the reorganization, A Class shares and B Class shares of the acquired fund were converted to A Class shares and B Class shares, respectively, of the surviving fund. A Class and B Class net assets of International Equity before the reorganization were $54,617 and $4,917, respectively. Immediately after the reorganization, A Class and B Class net assets of International Value were $54,617 and $4,917, respectively. 10. CORPORATE EVENT On July 27, 2007, the A Class (old) shareholders of Global Growth approved a reclassification of A Class (old) shares into Advisor Class shares. The change was approved by the Board of Directors on November 29, 2006 and March 7, 2007. The reclassification was effective on September 4, 2007. Subsequent to the reclassification, the Advisor Class was renamed A Class. On September 25, 2007, the A Class shareholders of International Growth approved a reclassification of A Class shares into Advisor Class shares. The change was approved by the Board of Directors on November 29, 2006 and March 7, 2007. The reclassification was effective December 3, 2007. Subsequent to the reclassification, the Advisor Class was renamed A Class. 11. RECENTLY ISSUED ACCOUNTING STANDARDS In June 2006, the Financial Accounting Standards Board (FASB) issued Interpretation No. 48, "Accounting for Uncertainty in Income Taxes -- an Interpretation of FASB Statement No. 109" (FIN 48). FIN 48 establishes a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. FIN 48 is effective for fiscal years beginning after December 15, 2006, and is to be applied to all open tax years as of the date of effectiveness. Management has concluded that the adoption of FIN 48 will not materially impact the financial statements. The FASB issued Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157), in September 2006, which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands the required financial statement disclosures about fair value measurements. Management is currently evaluating the impact that adopting FAS 157 will have on the financial statement disclosures. - ------ 52 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) 12. OTHER TAX INFORMATION (UNAUDITED) ($ IN FULL) The following information is provided pursuant to provisions of the Internal Revenue Code. The funds hereby designate up to the maximum amount allowable as qualified dividend income for the fiscal year ended November 30, 2007. For corporate taxpayers, the following ordinary income distributions paid during the fiscal year ended November 30, 2007, qualify for the corporate dividends received deduction. International Growth Global Growth Emerging Markets International Value $176,082 $539,954 -- -- The funds hereby designate capital gain distributions for the fiscal year ended November 30, 2007, as follows: International Growth Global Growth Emerging Markets International Value -- $9,098,675 $33,788,249 $18,548,406 The funds hereby designate qualified short-term capital gains distributions for purposes of Internal Revenue Code Section 871 for the fiscal year ended November 30, 2007, as follows: International Growth Global Growth Emerging Markets International Value -- $273,868 $56,467,424 $1,219,621 As of November 30, 2007, the funds designate the following as a foreign tax credit, which represents taxes paid on income derived from sources within foreign countries or possession of the United States. International Growth Global Growth Emerging Markets International Value $1,492,534 $92,186 $828,471 $168,931 - ------ 53 FINANCIAL HIGHLIGHTS International Growth Investor Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $12.17 $9.75 $8.79 $7.54 $6.69 -------- -------- -------- -------- -------- Income From Investment Operations Net Investment Income (Loss)(1) 0.13 0.06 0.11 0.05 0.06 Net Realized and Unrealized Gain (Loss) 2.66 2.54 0.94 1.26 0.85 -------- -------- -------- -------- -------- Total From Investment Operations 2.79 2.60 1.05 1.31 0.91 -------- -------- -------- -------- -------- Distributions From Net Investment Income (0.09) (0.18) (0.09) (0.06) (0.06) -------- -------- -------- -------- -------- Net Asset Value, End of Period $14.87 $12.17 $9.75 $8.79 $7.54 ========- ======== ======== ======== ======== TOTAL RETURN(2) 23.09% 27.03% 12.09% 17.45% 13.70% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.27% 1.26% 1.23% 1.26% 1.28% Ratio of Net Investment Income (Loss) to Average Net Assets 0.94% 0.52% 1.22% 0.57% 0.84% Portfolio Turnover Rate 133% 95% 89% 118% 169% Net Assets, End of Period (in thousands) $2,267,093 $2,352,967 $2,249,430 $2,395,249 $2,502,831 (1) Computed using average shares outstanding throughout the period. (2) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 54 International Growth Institutional Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $12.20 $9.78 $8.82 $7.56 $6.71 -------- -------- -------- -------- -------- Income From Investment Operations Net Investment Income (Loss)(1) 0.17 0.07 0.13 0.06 0.07 Net Realized and Unrealized Gain (Loss) 2.66 2.55 0.94 1.27 0.85 -------- -------- -------- -------- -------- Total From Investment Operations 2.83 2.62 1.07 1.33 0.92 -------- -------- -------- -------- -------- Distributions From Net Investment Income (0.12) (0.20) (0.11) (0.07) (0.07) -------- -------- -------- -------- -------- Net Asset Value, End of Period $14.91 $12.20 $9.78 $8.82 $7.56 ======== ======== ======== ======== ======== TOTAL RETURN(2) 23.36% 27.19% 12.28% 17.78% 13.89% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.07% 1.06% 1.03% 1.06% 1.08% Ratio of Net Investment Income (Loss) to Average Net Assets 1.14% 0.72% 1.42% 0.77% 1.04% Portfolio Turnover Rate 133% 95% 89% 118% 169% Net Assets, End of Period (in thousands) $80,452 $125,814 $247,077 $283,330 $301,854 (1) Computed using average shares outstanding throughout the period. (2) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 55 International Growth Advisor Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $12.12 $9.72 $8.76 $7.52 $6.66 -------- -------- -------- -------- -------- Income From Investment Operations Net Investment Income (Loss)(1) 0.08 0.03 0.09 0.03 0.03 Net Realized and Unrealized Gain (Loss) 2.68 2.52 0.94 1.25 0.87 -------- -------- -------- -------- -------- Total From Investment Operations 2.76 2.55 1.03 1.28 0.90 -------- -------- -------- -------- -------- Distributions From Net Investment Income (0.06) (0.15) (0.07) (0.04) (0.04) -------- -------- -------- -------- -------- Net Asset Value, End of Period $14.82 $12.12 $9.72 $8.76 $7.52 ======== ======== ======== ======== ======== TOTAL RETURN(2) 22.87% 26.57% 11.85% 17.07% 13.62% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.52% 1.51% 1.48% 1.51% 1.53% Ratio of Net Investment Income (Loss) to Average Net Assets 0.69% 0.27% 0.97% 0.32% 0.59% Portfolio Turnover Rate 133% 95% 89% 118% 169% Net Assets, End of Period (in thousands) $241,579 $336,497 $259,651 $275,195 $239,256 (1) Computed using average shares outstanding throughout the period. (2) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 56 International Growth A Class For a Share Outstanding Throughout the Years Ended November 30 (except as noted) 2007 2006 2005 2004 2003(1) PER-SHARE DATA Net Asset Value, Beginning of Period $12.14 $9.73 $8.77 $7.53 $6.10 -------- -------- -------- -------- -------- Income From Investment Operations Net Investment Income (Loss)(2) 0.10 0.04 0.09 0.03 (0.02) Net Realized and Unrealized Gain (Loss) 2.66 2.52 0.94 1.25 1.45 -------- -------- -------- -------- -------- Total From Investment Operations 2.76 2.56 1.03 1.28 1.43 -------- -------- -------- -------- -------- Distributions From Net Investment Income (0.06) (0.15) (0.07) (0.04) -- -------- -------- -------- -------- -------- Net Asset Value, End of Period $14.84 $12.14 $9.73 $8.77 $7.53 ======== ======== ======== ======== ======== TOTAL RETURN(3) 22.84% 26.65% 11.84% 17.10% 23.44% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.52% 1.51% 1.48% 1.51% 1.53%(4) Ratio of Net Investment Income (Loss) to Average Net Assets 0.69% 0.27% 0.97% 0.32% (0.40)%(4) Portfolio Turnover Rate 133% 95% 89% 118% 169%(5) Net Assets, End of Period (in thousands) $34,139 $28,367 $25,193 $14,170 $7,395 (1) January 31, 2003 (commencement of sale) through November 30, 2003. (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (4) Annualized. (5) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2003. See Notes to Financial Statements. - ------ 57 International Growth B Class For a Share Outstanding Throughout the Years Ended November 30 (except as noted) 2007 2006 2005 2004 2003(1) PER-SHARE DATA Net Asset Value, Beginning of Period $12.04 $9.65 $8.70 $7.48 $6.10 ------- ------- ------- ------- ------- Income From Investment Operations Net Investment Income (Loss)(2) --(3) (0.05) 0.02 (0.03) (0.03) Net Realized and Unrealized Gain (Loss) 2.64 2.52 0.93 1.25 1.41 ------- ------- ------- ------- ------- Total From Investment Operations 2.64 2.47 0.95 1.22 1.38 ------- ------- ------- ------- ------- Distributions From Net Investment Income -- (0.08) --(3) -- -- ------- ------- ------- ------- ------- Net Asset Value, End of Period $14.68 $12.04 $9.65 $8.70 $7.48 ======= ======= ======= ======= ======= TOTAL RETURN(4) 21.93% 25.71% 10.97% 16.31% 22.62% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 2.27% 2.26% 2.23% 2.26% 2.28%(5) Ratio of Net Investment Income (Loss) to Average Net Assets (0.06)% (0.48)% 0.22% (0.43)% (0.51)%(5) Portfolio Turnover Rate 133% 95% 89% 118% 169%(6) Net Assets, End of Period (in thousands) $3,320 $2,699 $1,676 $1,107 $513 (1) January 31, 2003 (commencement of sale) through November 30, 2003. (2) Computed using average shares outstanding throughout the period. (3) Per-share amount was less than $0.005. (4) Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (5) Annualized. (6) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2003. See Notes to Financial Statements. - ------ 58 International Growth C Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $11.97 $9.60 $8.66 $7.45 $6.60 ------- ------- ------- ------- ------- Income From Investment Operations Net Investment Income (Loss)(1) --(2) (0.05) 0.02 (0.03) (0.01) ------- ------- ------- ------- ------- Net Realized and Unrealized Gain (Loss) 2.63 2.50 0.92 1.24 0.86 ------- ------- ------- ------- ------- Total From Investment Operations 2.63 2.45 0.94 1.21 0.85 Distributions From Net Investment Income -- (0.08) --(2) -- -- ------- ------- ------- ------- ------- Net Asset Value, End of Period $14.60 $11.97 $9.60 $8.66 $7.45 ======= ======= ======= ======= ======= TOTAL RETURN(3) 21.97% 25.64% 10.91% 16.24% 12.88% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 2.27% 2.26% 2.23% 2.26% 2.28% Ratio of Net Investment Income (Loss) to Average Net Assets (0.06)% (0.48)% 0.22% (0.43)% (0.16)% Portfolio Turnover Rate 133% 95% 89% 118% 169% Net Assets, End of Period (in thousands) $7,318 $6,250 $5,246 $5,070 $1,933 (1) Computed using average shares outstanding throughout the period. (2) Per-share amount was less than $0.005. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 59 International Growth R Class For a Share Outstanding Throughout the Years Ended November 30 (except as noted) 2007 2006 2005 2004 2003(1) PER-SHARE DATA Net Asset Value, Beginning of Period $12.12 $9.71 $8.75 $7.53 $7.02 ------- ------- ------- ------- ------- Income From Investment Operations Net Investment Income (Loss)(2) 0.07 0.01 0.07 0.02 (0.01) Net Realized and Unrealized Gain (Loss) 2.65 2.53 0.94 1.25 0.52 ------- ------- ------- ------- ------- Total From Investment Operations 2.72 2.54 1.01 1.27 0.51 ------- ------- ------- ------- ------- Distributions From Net Investment Income (0.03) (0.13) (0.05) (0.05) -- ------- ------- ------- ------- ------- Net Asset Value, End of Period $14.81 $12.12 $9.71 $8.75 $7.53 ======= ======= ======= ======= ======= TOTAL RETURN(3) 22.48% 26.39% 11.58% 16.92% 7.26% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.77% 1.76% 1.69%(4) 1.76% 1.78%(5) Ratio of Net Investment Income (Loss) to Average Net Assets 0.44% 0.02% 0.76%(4) 0.07% (0.74)%(5) Portfolio Turnover Rate 133% 95% 89% 118% 169%(6) Net Assets, End of Period (in thousands) $4,042 $2,106 $1,809 $376 $3 (1) August 29, 2003 (commencement of sale) through November 30, 2003. (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (4) During the year ended November 30, 2005, the class received a partial reimbursement of its distribution and service fees. Had fees not been reimbursed, the ratio of operating expenses to average net assets and the ratio of net investment income (loss) to average net assets would have been 1.73% and 0.72%, respectively. (5) Annualized. (6) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2003. See Notes to Financial Statements. - ------ 60 Global Growth Investor Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $10.52 $8.88 $7.49 $6.48 $5.39 -------- -------- -------- -------- -------- Income From Investment Operations Net Investment Income (Loss)(1) 0.03 --(2) --(2) (0.01) --(2) Net Realized and Unrealized Gain (Loss) 2.41 1.70 1.41 1.02 1.09 -------- -------- -------- -------- -------- Total From Investment Operations 2.44 1.70 1.41 1.01 1.09 -------- -------- -------- -------- -------- Distributions From Net Investment Income (0.05) (0.06) (0.02) -- -- From Net Realized Gains (0.22) -- -- -- -- -------- -------- -------- -------- -------- Total Distributions (0.27) (0.06) (0.02) -- -- -------- -------- -------- -------- -------- Net Asset Value, End of Period $12.69 $10.52 $8.88 $7.49 $6.48 ======== ======== ======== ======== ======== TOTAL RETURN(3) 23.73% 19.30% 18.87% 15.59% 20.22% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.30% 1.31% 1.30% 1.30% 1.31% Ratio of Net Investment Income (Loss) to Average Net Assets 0.29% (0.05)% (0.01)% (0.12)% 0.00% Portfolio Turnover Rate 108% 95% 36% 79% 152% Net Assets, End of Period (in thousands) $481,553 $418,185 $378,976 $299,807 $250,306 (1) Computed using average shares outstanding throughout the period. (2) Per-share amount was less than $0.005. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 61 Global Growth Institutional Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $10.60 $8.95 $7.55 $6.52 $5.41 ------- ------- ------- ------- ------- Income From Investment Operations Net Investment Income (Loss)(1) 0.06 0.01 0.01 --(2) 0.01 Net Realized and Unrealized Gain (Loss) 2.42 1.72 1.43 1.03 1.10 ------- ------- ------- ------- ------- Total From Investment Operations 2.48 1.73 1.44 1.03 1.11 ------- ------- ------- ------- ------- Distributions From Net Investment Income (0.07) (0.08) (0.04) -- -- From Net Realized Gains (0.22) -- -- -- -- ------- ------- ------- ------- ------- Total Distributions (0.29) (0.08) (0.04) -- -- ------- ------- ------- ------- ------- Net Asset Value, End of Period $12.79 $10.60 $8.95 $7.55 $6.52 ======= ======= ======= ======= ======= TOTAL RETURN(3) 23.99% 19.50% 19.22% 15.80% 20.52% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.10% 1.11% 1.10% 1.10% 1.11% Ratio of Net Investment Income (Loss) to Average Net Assets 0.49% 0.15% 0.19% 0.08% 0.20% Portfolio Turnover Rate 108% 95% 36% 79% 152% Net Assets, End of Period (in thousands) $16,298 $8,540 $8,669 $6,774 $7,901 (1) Computed using average shares outstanding throughout the period. (2) Per-share amount was less than $0.005. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 62 Global Growth A Class(1) For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $10.41 $8.79 $7.41 $6.43 $5.36 ------- ------- ------- ------- ------- Income From Investment Operations Net Investment Income (Loss)(2) 0.01 (0.03) (0.02) (0.02) (0.02) Net Realized and Unrealized Gain (Loss) 2.38 1.69 1.40 1.00 1.09 ------- ------- ------- ------- ------- Total From Investment Operations 2.39 1.66 1.38 0.98 1.07 ------- ------- ------- ------- ------- Distributions From Net Investment Income (0.02) (0.04) -- -- -- From Net Realized Gains (0.22) -- -- -- -- ------- ------- ------- ------- ------- Total Distributions (0.24) (0.04) -- -- -- ------- ------- ------- ------- ------- Net Asset Value, End of Period $12.56 $10.41 $8.79 $7.41 $6.43 ======= ======= ======= ======= ======= TOTAL RETURN(3) 23.47% 18.97% 18.62% 15.24% 19.96% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.55% 1.56% 1.55% 1.55% 1.56% Ratio of Net Investment Income (Loss) to Average Net Assets 0.04% (0.30)% (0.26)% (0.37)% (0.25)% Portfolio Turnover Rate 108% 95% 36% 79% 152% Net Assets, End of Period (in thousands) $18,402 $5,571 $3,664 $2,475 $1,044 (1) Prior to September 4, 2007, the A Class was referred to as the Advisor Class. (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 63 Global Growth B Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 PER-SHARE DATA Net Asset Value, Beginning of Period $10.42 $9.02 ------- ------- Income From Investment Operations Net Investment Income (Loss)(1) (0.08) (0.11) Net Realized and Unrealized Gain (Loss) 2.38 1.57 ------- ------- Total From Investment Operations 2.30 1.46 ------- ------- Distributions From Net Investment Income -- (0.06) From Net Realized Gains (0.22) -- ------- ------- Total Distributions (0.22) (0.06) ------- ------- Net Asset Value, End of Period $12.50 $10.42 ======= ======= TOTAL RETURN(2) 22.51% 16.29% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 2.30% 2.31% Ratio of Net Investment Income (Loss) to Average Net Assets (0.71)% (1.05)% Portfolio Turnover Rate 108% 95% Net Assets, End of Period (in thousands) $639 $352 (1) Computed using average shares outstanding throughout the period. (2) Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 64 Global Growth C Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $10.14 $8.59 $7.29 $6.37 $5.35 ------- ------- ------- ------- ------- Income From Investment Operations Net Investment Income (Loss)(1) (0.07) (0.10) (0.08) (0.08) (0.05) Net Realized and Unrealized Gain (Loss) 2.31 1.65 1.38 1.00 1.07 ------- ------- ------- ------- ------- Total From Investment Operations 2.24 1.55 1.30 0.92 1.02 ------- ------- ------- ------- ------- Distributions From Net Realized Gains (0.22) -- -- -- -- ------- ------- ------- ------- ------- Net Asset Value, End of Period $12.16 $10.14 $8.59 $7.29 $6.37 ======= ======= ======= ======= ======= TOTAL RETURN(2) 22.54% 18.04% 17.83% 14.44% 19.07% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 2.30% 2.31% 2.30% 2.30% 2.31% Ratio of Net Investment Income (Loss) to Average Net Assets (0.71)% (1.05)% (1.01)% (1.12)% (1.00)% Portfolio Turnover Rate 108% 95% 36% 79% 152% Net Assets, End of Period (in thousands) $2,625 $1,050 $454 $184 $56 (1) Computed using average shares outstanding throughout the period. (2) Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 65 Global Growth R Class For a Share Outstanding Throughout the Years Ended November 30 (except as noted) 2007 2006 2005(1) PER-SHARE DATA Net Asset Value, Beginning of Period $10.47 $8.86 $8.37 -------- -------- -------- Income From Investment Operations Net Investment Income (Loss)(2) 0.02 (0.05) (0.02) Net Realized and Unrealized Gain (Loss) 2.35 1.71 0.51 -------- -------- -------- Total From Investment Operations 2.37 1.66 0.49 -------- -------- -------- Distributions From Net Investment Income -- (0.05) -- From Net Realized Gains (0.22) -- -- -------- -------- -------- Total Distributions (0.22) (0.05) -- -------- -------- -------- Net Asset Value, End of Period $12.62 $10.47 $8.86 ======== ======== ======== TOTAL RETURN(3) 23.08% 18.79% 5.85% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.80% 1.81% 1.80%(4) Ratio of Net Investment Income (Loss) to Average Net Assets (0.21)% (0.55)% (0.71)%(4) Portfolio Turnover Rate 108% 95% 36%(5) Net Assets, End of Period (in thousands) $202 $32 $26 (1) July 29, 2005 (commencement of sale) through November 30, 2005. (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (4) Annualized. (5) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2005. See Notes to Financial Statements. - ------ 66 Emerging Markets Investor Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $10.06 $8.25 $6.28 $5.28 $3.61 -------- -------- -------- -------- -------- Income From Investment Operations Net Investment Income (Loss)(1) 0.10 0.11 0.01 (0.01) --(2) Net Realized and Unrealized Gain (Loss) 4.06 3.11 2.05 1.00 1.66 -------- -------- -------- -------- -------- Total From Investment Operations 4.16 3.22 2.06 0.99 1.66 -------- -------- -------- -------- -------- Distributions From Net Investment Income (0.13) (0.05) -- -- -- From Net Realized Gains (1.42) (1.37) (0.09) -- -- -------- -------- -------- -------- -------- Total Distributions (1.55) (1.42) (0.09) -- -- -------- -------- -------- -------- -------- Redemption Fees(1) 0.02 0.01 --(2) 0.01 0.01 -------- -------- -------- -------- -------- Net Asset Value, End of Period $12.69 $10.06 $8.25 $6.28 $5.28 ======== ======== ======== ======== ======== TOTAL RETURN(3) 48.81% 46.10% 33.10% 18.94% 46.26% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.66% 1.80% 1.94% 2.00% 2.01% Ratio of Net Investment Income (Loss) to Average Net Assets 0.96% 1.31% 0.17% (0.22)% 0.03% Portfolio Turnover Rate 85% 115% 153% 208% 286% Net Assets, End of Period (in thousands) $1,070,138 $523,813 $220,720 $135,355 $103,737 (1) Computed using average shares outstanding throughout the period. (2) Per-share amount was less than $0.005. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 67 Emerging Markets Institutional Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $10.21 $8.36 $6.35 $5.33 $3.64 ------- ------- ------- ------- ------- Income From Investment Operations Net Investment Income (Loss)(1) 0.12 0.12 0.03 --(2) 0.01 Net Realized and Unrealized Gain (Loss) 4.14 3.16 2.07 1.01 1.67 ------- ------- ------- ------- ------- Total From Investment Operations 4.26 3.28 2.10 1.01 1.68 ------- ------- ------- ------- ------- Distributions From Net Investment Income (0.15) (0.07) -- -- -- From Net Realized Gains (1.42) (1.37) (0.09) -- -- ------- ------- ------- ------- ------- Total Distributions (1.57) (1.44) (0.09) -- -- ------- ------- ------- ------- ------- Redemption Fees(1) 0.02 0.01 --(2) 0.01 0.01 ------- ------- ------- ------- ------- Net Asset Value, End of Period $12.92 $10.21 $8.36 $6.35 $5.33 ======= ======= ======= ======= ======= TOTAL RETURN(3) 49.21% 46.31% 33.37% 19.14% 46.43% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.46% 1.60% 1.74% 1.80% 1.81% Ratio of Net Investment Income (Loss) to Average Net Assets 1.16% 1.51% 0.37% (0.02)% 0.23% Portfolio Turnover Rate 85% 115% 153% 208% 286% Net Assets, End of Period (in thousands) $74,897 $85,886 $113,765 $92,673 $63,242 (1) Computed using average shares outstanding throughout the period. (2) Per-share amount was less than $0.005. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 68 Emerging Markets A Class(1) For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $9.85 $8.11 $6.19 $5.22 $3.58 ------- ------- ------- ------- ------- Income From Investment Operations Net Investment Income (Loss)(2) 0.07 0.11 (0.01) (0.03) --(3) Net Realized and Unrealized Gain (Loss) 3.99 3.02 2.02 0.99 1.63 ------- ------- ------- ------- ------- Total From Investment Operations 4.06 3.13 2.01 0.96 1.63 ------- ------- ------- ------- ------- Distributions From Net Investment Income (0.11) (0.03) -- -- -- From Net Realized Gains (1.42) (1.37) (0.09) -- -- ------- ------- ------- ------- ------- Total Distributions (1.53) (1.40) (0.09) -- -- ------- ------- ------- ------- ------- Redemption Fees(2) 0.02 0.01 --(3) 0.01 0.01 ------- ------- ------- ------- ------- Net Asset Value, End of Period $12.40 $9.85 $8.11 $6.19 $5.22 ======= ======= ======= ======= ======= TOTAL RETURN(4) 48.61% 45.59% 32.77% 18.58% 45.81% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.91% 2.05% 2.19% 2.25% 2.26% Ratio of Net Investment Income (Loss) to Average Net Assets 0.71% 1.06% (0.08)% (0.47)% (0.22)% Portfolio Turnover Rate 85% 115% 153% 208% 286% Net Assets, End of Period (in thousands) $36,795 $9,905 $1,773 $1,178 $597 (1) Prior to September 4, 2007, the A Class was referred to as the Advisor Class. (2) Computed using average shares outstanding throughout the period. (3) Per-share amount was less than $0.005. (4) Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 69 Emerging Markets B Class For a Share Outstanding Throughout the Period Indicated 2007(1) PER-SHARE DATA Net Asset Value, Beginning of Period $12.15 -------- Income From Investment Operations Net Investment Income (Loss)(2) (0.03) Net Realized and Unrealized Gain (Loss) 0.53 -------- Total From Investment Operations 0.50 -------- Redemption Fees(2) 0.02 -------- Net Asset Value, End of Period $12.67 ======== TOTAL RETURN(3) 4.28% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 2.58%(4) Ratio of Net Investment Income (Loss) to Average Net Assets (1.30)%(4) Portfolio Turnover Rate 85%(5) Net Assets, End of Period (in thousands) $54 (1) September 28, 2007 (commencement of sale) through November 30, 2007. (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (4) Annualized. (5) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2007. See Notes to Financial Statements. - ------ 70 Emerging Markets C Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $9.64 $7.95 $6.12 $5.19 $3.58 ------- ------- ------- ------- ------- Income From Investment Operations Net Investment Income (Loss)(1) (0.01) 0.03 (0.05) (0.07) (0.04) Net Realized and Unrealized Gain (Loss) 3.90 2.99 1.97 0.99 1.64 ------- ------- ------- ------- ------- Total From Investment Operations 3.89 3.02 1.92 0.92 1.60 ------- ------- ------- ------- ------- Distributions From Net Investment Income (0.03) -- -- -- -- From Net Realized Gains (1.42) (1.34) (0.09) -- -- ------- ------- ------- ------- ------- Total Distributions (1.45) (1.34) (0.09) -- -- ------- ------- ------- ------- ------- Redemption Fees(1) 0.02 0.01 --(2) 0.01 0.01 ------- ------- ------- ------- ------- Net Asset Value, End of Period $12.10 $9.64 $7.95 $6.12 $5.19 ======= ======= ======= ======= ======= TOTAL RETURN(3) 47.39% 44.59% 31.67% 17.92% 44.97% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 2.66% 2.80% 2.94% 3.00% 3.01% Ratio of Net Investment Income (Loss) to Average Net Assets (0.04)% 0.31% (0.83)% (1.22)% (0.97)% Portfolio Turnover Rate 85% 115% 153% 208% 286% Net Assets, End of Period (in thousands) $9,098 $2,581 $733 $521 $291 (1) Computed using average shares outstanding throughout the period. (2) Per-share amount was less than $0.005. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 71 Emerging Markets R Class For a Share Outstanding Throughout the Period Indicated 2007(1) PER-SHARE DATA Net Asset Value, Beginning of Period $12.15 -------- Income From Investment Operations Net Investment Income (Loss)(2) (0.01) Net Realized and Unrealized Gain (Loss) 0.52 -------- Total From Investment Operations 0.51 -------- Redemption Fees(2) 0.02 -------- Net Asset Value, End of Period $12.68 ======== TOTAL RETURN(3) 4.36% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 2.08%(4) Ratio of Net Investment Income (Loss) to Average Net Assets (0.68)%(4) Portfolio Turnover Rate 85%(5) Net Assets, End of Period (in thousands) $27 (1) September 28, 2007 (commencement of sale) through November 30, 2007. (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (4) Annualized. (5) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2007. See Notes to Financial Statements. - ------ 72 International Value Investor Class For a Share Outstanding Throughout the Years Ended November 30 (except as noted) 2007 2006(1) PER-SHARE DATA Net Asset Value, Beginning of Period $14.36 $12.85 -------- -------- Income From Investment Operations Net Investment Income (Loss)(2) 0.22 0.15 Net Realized and Unrealized Gain (Loss) 2.09 1.36 -------- -------- Total From Investment Operations 2.31 1.51 -------- -------- Distributions From Net Investment Income (0.47) -- From Net Realized Gains (4.72) -- -------- -------- Total Distributions (5.19) -- -------- -------- Net Asset Value, End of Period $11.48 $14.36 ======== ======== TOTAL RETURN(3) 23.55% 11.75% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.30% 1.30%(4) Ratio of Net Investment Income (Loss) to Average Net Assets 1.96% 2.77%(4)(5) Portfolio Turnover Rate 11% 17% Net Assets, End of Period (in thousands) $3,044 $437 (1) April 3, 2006 (commencement of sale) through November 30, 2006. (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (4) Annualized. (5) Due to cyclical dividends and the eight-month period ended November 30, 2006, the annualized ratio of net investment income (loss) to average net assets is higher than expected. See Notes to Financial Statements. - ------ 73 International Value Institutional Class For a Share Outstanding Throughout the Years Ended November 30 (except as noted) 2007 2006(1) PER-SHARE DATA Net Asset Value, Beginning of Period $14.38 $12.85 -------- -------- Income From Investment Operations Net Investment Income (Loss)(2) 0.23 0.25 Net Realized and Unrealized Gain (Loss) 2.10 1.28 -------- -------- Total From Investment Operations 2.33 1.53 -------- -------- Distributions From Net Investment Income (0.49) -- From Net Realized Gains (4.72) -- -------- -------- Total Distributions (5.21) -- -------- -------- Net Asset Value, End of Period $11.50 $14.38 ======== ======== TOTAL RETURN(3) 23.77% 11.91% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.10% 1.10%(4) Ratio of Net Investment Income (Loss) to Average Net Assets 2.16% 2.97%(4)(5) Portfolio Turnover Rate 11% 17% Net Assets, End of Period (in thousands) $45,262 $35,574 (1) April 3, 2006 (commencement of sale) through November 30, 2006. (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (4) Annualized. (5) Due to cyclical dividends and the eight-month period ended November 30, 2006, the annualized ratio of net investment income (loss) to average net assets is higher than expected. See Notes to Financial Statements. - ------ 74 International Value A Class For a Share Outstanding Throughout the Years Ended November 30 (except as noted) 2007 2006(1) 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $14.35 $12.70 $10.91 $9.64 $6.22 $8.70 -------- -------- -------- -------- -------- -------- Income From Investment Operations Net Investment Income (Loss)(2) 0.20 0.25 0.18 0.13 0.10 0.07 Net Realized and Unrealized Gain (Loss) 2.11 1.40 1.97 1.37 3.42 (2.51) -------- -------- -------- -------- -------- -------- Total From Investment Operations 2.31 1.65 2.15 1.50 3.52 (2.44) -------- -------- -------- -------- -------- -------- Distributions From Net Investment Income (0.45) -- (0.15) (0.11) (0.10) (0.04) From Net Realized Gains (4.72) -- (0.21) (0.12) -- -- -------- -------- -------- -------- -------- -------- Total Distributions (5.17) -- (0.36) (0.23) (0.10) (0.04) -------- -------- -------- -------- -------- -------- Net Asset Value, End of Period $11.49 $14.35 $12.70 $10.91 $9.64 $6.22 ======== ======== ======== ======== ======== ======== TOTAL RETURN(3) 23.44% 12.99% 19.95% 15.58% 56.65% (28.10)% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.40%(4) 1.40%(4)(5) 1.35% 1.41% 1.47% 1.65%(6) Ratio of Operating Expenses to Average Net Assets (Before Expense Waiver) 1.55% 1.55%(5) 1.35% 1.41% 1.47% 1.66% Ratio of Net Investment Income (Loss) to Average Net Assets 1.86%(4) 2.67%(4)(5)(7) 1.52% 1.28% 1.13% 0.89%(6) Ratio of Net Investment Income (Loss) to Average Net Assets (Before Expense Waiver) 1.71% 2.52%(5)(7) 1.52% 1.28% 1.13% 0.90% Portfolio Turnover Rate 11% 17% 7% 18% 10% 18% Net Assets, End of Period (in thousands) $24,558 $19,890 $54,617 $203,215 $174,387 $105,862 (1) April 1, 2006 through November 30, 2006. The fund's fiscal year end was changed from March 31 to November 30, resulting in an eight-month annual reporting period. For the years before November 30, 2006, the fund's fiscal year end was March 31. (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (4) During the periods ended November 30, 2007 and November 30, 2006, the distributor voluntarily waived a portion of its distribution and service fees. (5) Annualized. (6) The investment advisor voluntarily agreed to waive fees and absorb certain operating expenses. (7) Due to cyclical dividends and the eight-month period ended November 30, 2006, the annualized ratio of net investment income (loss) to average net assets is higher than expected. See Notes to Financial Statements. - ------ 75 International Value B Class For a Share Outstanding Throughout the Years Ended November 30 (except as noted) 2007 2006(1) 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $14.08 $12.51 $10.75 $9.52 $6.14 $8.61 -------- -------- -------- -------- --------- -------- Income From Investment Operations Net Investment Income (Loss)(2) 0.12 0.17 0.10 0.06 0.04 0.01 Net Realized and Unrealized Gain (Loss) 2.05 1.40 1.93 1.34 3.39 (2.48) -------- -------- -------- -------- --------- -------- Total From Investment Operations 2.17 1.57 2.03 1.40 3.43 (2.47) -------- -------- -------- -------- --------- -------- Distributions From Net Investment Income (0.37) -- (0.06) (0.05) (0.05) -- From Net Realized Gains (4.72) -- (0.21) (0.12) -- -- -------- -------- -------- -------- --------- -------- Total Distributions (5.09) -- (0.27) (0.17) (0.05) -- -------- -------- -------- -------- --------- -------- Net Asset Value, End of Period $11.16 $14.08 $12.51 $10.75 $9.52 $6.14 ======== ======== ======== ======== ========- ======== TOTAL RETURN(3) 22.51% 12.55% 19.07% 14.69% 55.86% (28.69)% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 2.09%(4) 2.09%(4)(5) 2.08% 2.09% 2.11% 2.30%(6) Ratio of Operating Expenses to Average Net Assets (Before Expense Waiver) 2.30% 2.30%(5) 2.08% 2.09% 2.11% 2.31% Ratio of Net Investment Income (Loss) to Average Net Assets 1.17%(4) 1.98%(4)(5)(7) 0.90% 0.61% 0.52% 0.10%(6) Ratio of Net Investment Income (Loss) to Average Net Assets (Before Expense Waiver) 0.96% 1.77%(5)(7) 0.90% 0.61% 0.52% 0.09% Portfolio Turnover Rate 11% 17% 7% 18% 10% 18% Net Assets, End of Period (in thousands) $4,059 $4,313 $4,917 $5,165 $4,491 $3,011 (1) April 1, 2006 through November 30, 2006. The fund's fiscal year end was changed from March 31 to November 30, resulting in an eight-month annual reporting period. For the years before November 30, 2006, the fund's fiscal year end was March 31. (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (4) During the periods ended November 30, 2007 and November 30, 2006, the distributor voluntarily waived a portion of its distribution and service fees. (5) Annualized. (6) The investment advisor voluntarily agreed to waive fees and absorb certain operating expenses. (7) Due to cyclical dividends and the eight-month period ended November 30, 2006, the annualized ratio of net investment income (loss) to average net assets is higher than expected. See Notes to Financial Statements. - ------ 76 International Value C Class For a Share Outstanding Throughout the Years Ended November 30 (except as noted) 2007 2006(1) PER-SHARE DATA Net Asset Value, Beginning of Period $14.27 $12.85 -------- -------- Income From Investment Operations Net Investment Income (Loss)(2) 0.12 0.14 Net Realized and Unrealized Gain (Loss) 2.07 1.28 -------- -------- Total From Investment Operations 2.19 1.42 -------- -------- Distributions From Net Investment Income (0.37) -- From Net Realized Gains (4.72) -- -------- -------- Total Distributions (5.09) -- -------- -------- Net Asset Value, End of Period $11.37 $14.27 ======== ======== TOTAL RETURN(3) 22.28% 11.05% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 2.30% 2.30%(4) Ratio of Net Investment Income (Loss) to Average Net Assets 0.96% 1.77%(4)(5) Portfolio Turnover Rate 11% 17% Net Assets, End of Period (in thousands) $222 $41 (1) April 3, 2006 (commencement of sale) through November 30, 2006. (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (4) Annualized. (5) Due to cyclical dividends and the eight-month period ended November 30, 2006, the annualized ratio of net investment income (loss) to average net assets is higher than expected. See Notes to Financial Statements. - ------ 77 International Value R Class For a Share Outstanding Throughout the Years Ended November 30 (except as noted) 2007 2006(1) PER-SHARE DATA Net Asset Value, Beginning of Period $14.31 $12.85 -------- -------- Income From Investment Operations Net Investment Income (Loss)(2) 0.11 0.19 Net Realized and Unrealized Gain (Loss) 2.14 1.27 -------- -------- Total From Investment Operations 2.25 1.46 -------- -------- Distributions From Net Investment Income (0.42) -- From Net Realized Gains (4.72) -- -------- -------- Total Distributions (5.14) -- -------- -------- Net Asset Value, End of Period $11.42 $14.31 ======== ======== TOTAL RETURN(3) 22.91% 11.36% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.80% 1.80%(4) Ratio of Net Investment Income (Loss) to Average Net Assets 1.46% 2.27%(4)(5) Portfolio Turnover Rate 11% 17% Net Assets, End of Period (in thousands) $202 $28 (1) April 3, 2006 (commencement of sale) through November 30, 2006. (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (4) Annualized. (5) Due to cyclical dividends and the eight-month period ended November 30, 2006, the annualized ratio of net investment income (loss) to average net assets is higher than expected. See Notes to Financial Statements. - ------ 78 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Shareholders, American Century World Mutual Funds, Inc.: We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of International Growth Fund, Global Growth Fund, Emerging Markets Fund, and International Value Fund (the "Funds"), four of the mutual funds comprising American Century World Mutual Funds, Inc., as of November 30, 2007, and the related statements of operations for the year then ended, and the statements of changes in net assets and the financial highlights for the periods presented (except as noted below). These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial statements and financial highlights for International Value Fund for each of the periods ended March 31, 2006 and prior were audited by other auditors whose report, dated May 1, 2006, expressed an unqualified opinion on those financial statements and financial highlights. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2007, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective Funds of American Century World Mutual Funds, Inc. as of November 30, 2007, the results of their operations for the year then ended, and the changes in their net assets and the financial highlights for the periods presented (except as noted above in reference to the report of other auditors), in conformity with accounting principles generally accepted in the United States of America. Deloitte & Touche LLP Kansas City, Missouri January 14, 2008 - ------ 79 PROXY VOTING RESULTS Special meetings of shareholders were held on July 27, 2007 and August 24, 2007, to vote on the following proposals. The proposals received the required number of votes of the American Century World Mutual Funds, Inc. or the applicable fund, depending on the proposal, and were adopted. A summary of voting results is listed below each proposal. PROPOSAL 1: To elect nine Directors to the Board of Directors of American Century World Mutual Funds, Inc. (the proposal was voted on by all shareholders of funds issued by American Century World Mutual Funds, Inc.). James E. Stowers, Jr. For: 4,492,465,030 Withhold: 84,151,860 Abstain: 0 Broker Non-Vote: 0 Jonathan S. Thomas For: 4,496,101,969 Withhold: 80,514,921 Abstain: 0 Broker Non-Vote: 0 Thomas A. Brown For: 4,497,551,079 Withhold: 79,065,811 Abstain: 0 Broker Non-Vote: 0 Andrea C. Hall For: 4,497,808,657 Withhold: 78,808,233 Abstain: 0 Broker Non-Vote: 0 James A. Olson For: 4,497,582,906 Withhold: 79,033,984 Abstain: 0 Broker Non-Vote: 0 Donald H. Pratt For: 4,496,273,853 Withhold: 80,343,037 Abstain: 0 Broker Non-Vote: 0 Gale E. Sayers For: 4,496,553,346 Withhold: 80,063,544 Abstain: 0 Broker Non-Vote: 0 M. Jeannine Strandjord For: 4,494,879,736 Withhold: 81,737,154 Abstain: 0 Broker Non-Vote: 0 Timothy S. Webster For: 4,497,903,345 Withhold: 78,713,545 Abstain: 0 Broker Non-Vote: 0 - ------ 80 PROPOSAL 2: To approve a change in the fee structure of the Advisor Class. This proposal was voted on by the Advisor Class shareholders of the following funds: International Growth Global Growth Emerging Markets For: 245,711,113 2,292,355 5,260,676 Against: 1,308,358 73,170 286,704 Abstain: 2,136,809 124,243 365,861 Broker Non-Vote: 26,235,847 376,929 1,766,698 PROPOSAL 3: To approve the reclassification of the A Class shares of the fund, whereby all of the A Class shares will be reclassified as Advisor Class shares of the funds. This proposal was voted on by the A Class shareholders of the following funds: International Growth Global Growth For: 16,241,902 4,145,193 Against: 963,656 64,926 Abstain: 1,099,165 147,213 Broker Non-Vote: 12,602,709 3,294,547 - ------ 81 MANAGEMENT The individuals listed below serve as directors or officers of the funds. Each director serves until his or her successor is duly elected and qualified or until he or she retires. Mandatory retirement age for independent directors is 72. Those listed as interested directors are "interested" primarily by virtue of their engagement as directors and/or officers of, or ownership interest in, American Century Companies, Inc. (ACC) or its wholly owned, direct or indirect, subsidiaries, including the funds' investment advisor, American Century Global Investment Management, Inc. (ACGIM) or American Century Investment Management, Inc. (ACIM); the funds' principal underwriter, American Century Investment Services, Inc. (ACIS); and the funds' transfer agent, American Century Services, LLC (ACS). The other directors (more than three-fourths of the total number) are independent; that is, they have never been employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACGIM, ACIM, ACIS, and ACS. The directors serve in this capacity for seven registered investment companies in the American Century family of funds. All persons named as officers of the funds also serve in similar capacities for the other 14 investment companies in the American Century family of funds advised by ACIM, or ACGIM, a wholly owned subsidiary of ACIM, unless otherwise noted. Only officers with policy-making functions are listed. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. INTERESTED DIRECTORS JAMES E. STOWERS, JR., 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1924 POSITION(S) HELD WITH FUNDS: Director (since 1958) and Vice Chairman (since 2007) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Founder, Co-Chairman, Director and Controlling Shareholder, ACC; Co-Vice Chairman, ACC (January 2005 to February 2007); Chairman, ACC (January 1995 to December 2004); Director, ACIM, ACGIM, ACS, ACIS and other ACC subsidiaries NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None JONATHAN S. THOMAS, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1963 POSITION(S) HELD WITH FUNDS: Director (since 2007) and President (since 2007) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President and Chief Executive Officer, ACC (March 2007 to present); Chief Administrative Officer, ACC (February 2006 to February 2007); Executive Vice President, ACC (November 2005 to February 2007). Also serves as: President, Chief Executive Officer and Director, ACS; Executive Vice President, ACIM and ACGIM; Director, ACIM, ACGIM, ACIS and other ACC subsidiaries; Managing Director, Morgan Stanley (March 2000 to November 2005) NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 105 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None - ------ 82 INDEPENDENT DIRECTORS THOMAS A. BROWN, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1940 POSITION(S) HELD WITH FUNDS: Director (since 1980) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Member, Associated Investments, LLC (real estate investment company); Managing Member, Brown Cascade Properties, LLC (real estate investment company); Retired, Area Vice President, Applied Industrial Technologies NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None ANDREA C. HALL, PH.D., 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1945 POSITION(S) HELD WITH FUNDS: Director (since 1997) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Retired, Advisor to the President, Midwest Research Institute NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None JAMES A. OLSON, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1942 POSITION(S) HELD WITH FUNDS: Director (since 2007) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Member, Plaza Belmont LLC; Chief Financial Officer, Plaza Belmont LLC (September 1999 to September 2006) NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: Director, Saia, Inc. and Entertainment Properties Trust DONALD H. PRATT, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1937 POSITION(S) HELD WITH FUNDS: Director (since 1995) and Chairman of the Board (since 2005) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chairman and Chief Executive Officer, Western Investments, Inc.; Retired Chairman of the Board, Butler Manufacturing Company NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None GALE E. SAYERS, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1943 POSITION(S) HELD WITH FUNDS: Director (since 2000) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President, Chief Executive Officer and Founder, Sayers40, Inc., a technology products and services provider NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None M. JEANNINE STRANDJORD, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1945 POSITION(S) HELD WITH FUNDS: Director (since 1994) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Retired, formerly Senior Vice President, Sprint Corporation NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: Director, DST Systems, Inc.; Director, Euronet Worldwide, Inc.; Director, Charming Shoppes, Inc. - ------ 83 TIMOTHY S. WEBSTER, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1961 POSITION(S) HELD WITH FUNDS: Director (since 2001) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Director, TDB Acquisition Group LLC (September 2006 to present); Founder and Principal, Growth Consulting and Investments LLC (November 2007 to present); President and Chief Executive Officer, American Italian Pasta Company (2001 to December 2005) NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None OFFICERS BARRY FINK, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1955 POSITION(S) HELD WITH FUNDS: Executive Vice President (since 2007) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Operating Officer and Executive Vice President, ACC (September 2007 to present); President, ACS LLC (October 2007 to present); Managing Director, Morgan Stanley (2000 to 2007); Global General Counsel, Morgan Stanley (2000 to 2006). Also serves as: Director, ACC, ACS, ACIS and other ACC subsidiaries MARYANNE ROEPKE, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1956 POSITION(S) HELD WITH FUNDS: Chief Compliance Officer (since 2006) and Senior Vice President (since 2000) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Compliance Officer, ACIM, ACGIM and ACS (August 2006 to present); Assistant Treasurer, ACC (January 1995 to August 2006); and Treasurer and Chief Financial Officer, various American Century funds (July 2000 to August 2006). Also serves as: Senior Vice President, ACS CHARLES A. ETHERINGTON, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1957 POSITION(S) HELD WITH FUNDS: General Counsel (since 2007) and Senior Vice President (since 2006) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Attorney, ACC (February 1994 to present); Vice President, ACC (November 2005 to present); General Counsel, ACC (March 2007 to present). Also serves as: General Counsel, ACIM, ACGIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM, ACGIM and ACS ROBERT LEACH, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1966 POSITION(S) HELD WITH FUNDS: Vice President, Treasurer and Chief Financial Officer (all since 2006) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President, ACS (February 2000 to present) and Controller, various American Century funds (1997 to September 2006) JON ZINDEL, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1967 POSITION(S) HELD WITH FUNDS: Tax Officer (since 1998) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Financial Officer and Chief Accounting Officer, ACC (March 2007 to present); Vice President, ACC (October 2001 to present); Vice President, certain ACC subsidiaries (October 2001 to August 2006); Vice President, Corporate Tax, ACS (April 1998 to August 2006). Also serves as: Chief Financial Officer, Chief Accounting Officer and Senior Vice President, ACIM, ACGIM, ACS and other ACC subsidiaries; and Chief Accounting Officer and Senior Vice President, ACIS The SAI has additional information about the funds' directors and is available without charge, upon request, by calling 1-800-345-2021. - ------ 84 SHARE CLASS INFORMATION Seven classes of shares are authorized for sale by International Growth: Investor Class, Institutional Class, Advisor Class, A Class, B Class, C Class, and R Class. Six classes of shares are authorized for sale by Global Growth, Emerging Markets and International Value: Investor Class, Institutional Class, A Class, B Class, C Class, and R Class. The total expense ratio of Institutional Class shares is lower than that of Investor Class shares. The total expense ratios of Advisor Class, A Class, B Class, C Class, and R Class shares are higher than that of Investor Class shares. The Advisor Class is no longer available effective December 3, 2007. INVESTOR CLASS shares are available for purchase in two ways: 1) directly from American Century without any commissions or other fees; and/or 2) through certain financial intermediaries (such as banks, broker-dealers, insurance companies and investment advisors), which may require payment of a transaction fee to the financial intermediary. The funds' prospectuses contain additional information regarding eligibility for Investor Class shares. INSTITUTIONAL CLASS shares are available to large investors such as endowments, foundations, and retirement plans, and to financial intermediaries serving these investors. This class recognizes the relatively lower cost of serving institutional customers and others who invest at least $5 million ($3 million for endowments and foundations) in an American Century fund or at least $10 million in multiple funds. In recognition of the larger investments and account balances and comparatively lower transaction costs, the unified management fee of Institutional Class shares is 0.20% less than the unified management fee of Investor Class shares. ADVISOR CLASS shares are sold primarily through institutions such as investment advisors, banks, broker-dealers, insurance companies, and financial advisors. The unified management fee for Advisor Class shares is the same as for Investor Class shares. Advisor Class shares are subject to a 0.25% annual Rule 12b-1 distribution and service fee. A CLASS shares are sold primarily through employer-sponsored retirement plans and through institutions such as investment advisors, banks, broker-dealers, and insurance companies. A Class shares are sold at their offering price, which is net asset value plus an initial sales charge that ranges from 5.75% to 0.00% for equity funds, depending on the amount invested. The initial sales charge is deducted from the purchase amount before it is invested. A Class shares may be subject to a contingent deferred sales charge (CDSC). There is no CDSC on shares acquired through reinvestment of dividends or capital gains. The prospectus contains information regarding reductions and waivers of sales charges for A Class shares. The unified management fee for A Class shares is the same as for Investor Class shares. A Class shares also are subject to a 0.25% annual Rule 12b-1 distribution and service fee. B CLASS shares are sold primarily through employer-sponsored retirement plans and through institutions such as investment advisors, banks, broker-dealers, and insurance companies. B Class shares redeemed within six years of purchase are subject to a CDSC that declines from 5.00% during the first year after purchase to 0.00% after the sixth year. There is no CDSC on shares acquired through reinvestment of dividends or capital gains. The unified management fee for B Class shares is the same as for Investor Class shares. B Class shares also are subject to a 1.00% annual Rule 12b-1 distribution and service fee. B Class shares automatically convert to A Class shares (with lower expenses) eight years after their purchase date. - ------ 85 C CLASS shares are sold primarily through employer-sponsored retirement plans and through institutions such as investment advisors, banks, broker-dealers, and insurance companies. C Class shares redeemed within 12 months of purchase are subject to a CDSC of 1.00%. There is no CDSC on shares acquired through reinvestment of dividends or capital gains. The unified management fee for C Class shares is the same as for Investor Class shares. C Class shares also are subject to a Rule 12b-1 distribution and service fee of 1.00%. R CLASS shares are sold primarily through employer-sponsored retirement plans and through institutions such as investment advisors, banks, broker-dealers, and insurance companies. The unified management fee for R Class shares is the same as for Investor Class shares. R Class shares are subject to a 0.50% annual Rule 12b-1 distribution and service fee. All classes of shares represent a pro rata interest in the funds and generally have the same rights and preferences. - ------ 86 ADDITIONAL INFORMATION RETIREMENT ACCOUNT INFORMATION As required by law, any distributions you receive from an IRA or certain 403(b), 457 and qualified plans [those not eligible for rollover to an IRA or to another qualified plan] 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. Even if you plan to roll over the amount you withdraw to another tax-deferred account, the withholding rate still applies to the withdrawn amount unless we have received notice not to withhold federal income tax prior to the withdrawal. You may notify us in writing or in certain situations by telephone or through other electronic means. You have the right to revoke your withholding election at any time and any election you make may remain in effect until revoked by filing a new election. Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don't have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld. State taxes will be withheld from your distribution in accordance with the respective state rules. PROXY VOTING GUIDELINES American Century Global Investment Management, Inc., the funds' investment advisor, is responsible for exercising the voting rights associated with the securities purchased and/or held by the funds. A description of the policies and procedures the advisor uses in fulfilling this responsibility is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century's website at americancentury.com and on the Securities and Exchange Commission's website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov. QUARTERLY PORTFOLIO DISCLOSURE The funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The funds' Forms N-Q are available on the SEC's website at sec.gov, and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The funds also make their complete schedule of portfolio holdings for the most recent quarter of their fiscal year available on their website at americancentury.com and, upon request, by calling 1-800-345-2021. - ------ 87 INDEX DEFINITIONS The following indices are used to illustrate investment market, sector, or style performance or to serve as fund performance comparisons. They are not investment products available for purchase. Morgan Stanley Capital International (MSCI) has developed several indices that measure the performance of foreign stock markets. The MSCI EAFE® (Europe, Australasia, Far East) INDEX is designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI EAFE® GROWTH INDEX is a capitalization-weighted index that monitors the performance of growth stocks from Europe, Australasia, and the Far East. The MSCI EAFE® VALUE INDEX is a capitalization-weighted index that monitors the performance of value stocks from Europe, Australasia, and the Far East. The MSCI EM (Emerging Markets) INDEX represents the gross performance of stocks in global emerging market countries. The MSCI EUROPE INDEX is designed to measure equity market performance in Europe. The MSCI JAPAN INDEX is designed to measure equity market performance in Japan. The MSCI WORLD FREE INDEX represents the performance of stocks in developed countries (including the United States) that are available for purchase by global investors. - ------ 88 [back cover] CONTACT US AMERICANCENTURY.COM AUTOMATED INFORMATION LINE: 1-800-345-8765 INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021 or 816-531-5575 INVESTORS USING ADVISORS: 1-800-378-9878 BUSINESS, NOT-FOR-PROFIT, EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533 BANKS AND TRUST COMPANIES, BROKER-DEALERS, FINANCIAL PROFESSIONALS, INSURANCE COMPANIES: 1-800-345-6488 TELECOMMUNICATIONS DEVICE FOR THE DEAF: 1-800-634-4113 or 816-444-3485 AMERICAN CENTURY WORLD MUTUAL FUNDS, INC. INVESTMENT ADVISOR: American Century Global Investment Management, Inc. New York, New York THIS REPORT AND THE STATEMENTS IT CONTAINS ARE SUBMITTED FOR THE GENERAL INFORMATION OF OUR SHAREHOLDERS. THE REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. American Century Investments P.O. Box 419200 Kansas City, MO 64141-6200 PRSRT STD U.S. POSTAGE PAID AMERICAN CENTURY COMPANIES American Century Investment Services, Inc., Distributor ©2008 American Century Proprietary Holdings, Inc. All rights reserved. The American Century Investments logo, American Century and American Century Investments are service marks of American Century Proprietary Holdings, Inc. 0801 SH-ANN-57975S
[front cover] AMERICAN CENTURY INVESTMENTS Annual Report November 30, 2007 [photo of winter] International Stock Fund International Discovery Fund International Opportunities Fund [american century investments logo and text logo] OUR MESSAGE TO YOU [photo of Jonathan Thomas] JONATHAN THOMAS President and CEO American Century Companies, Inc. To help you monitor your investment, my colleagues and I take pride in providing you with the annual report for the American Century® International Stock, International Discovery and International Opportunities funds for the 12 months ended November 30, 2007. I am honored to be addressing you in the "Our Message" space long devoted to company founder Jim Stowers, Jr. and his son Jim Stowers III. Jim Stowers III stepped down from the American Century Companies, Inc. (ACC) board of directors in July 2007, his final step in a well-planned career transition to pursue new ventures outside the company. This reflected his family's support of our company's direction and its leadership team. The Stowers family remains an integral part of our heritage, leadership, and financial structure. In fact, Jim Stowers, Jr. continues as co-chair of the ACC board with Richard Brown, who has been on the board since 1998. American Century Investments, our clients, and our employees have been my top priority since I became company president and CEO in March, 2007. We have also added the executive talents of overall chief investment officer (CIO) Enrique Chang, international equity CIO Mark On, U.S. growth equity CIO Steve Lurito, and chief operating officer Barry Fink. This skilled group, combined with our existing senior management team, has already had a positive impact on the development and management of the products and services we take pride in delivering to you. We believe the ultimate measure of our performance is our clients' success. Therefore, our focus continues to be on building a long-term relationship with you and on delivering superior investment performance across our product line. /s/ Jonathan Thomas Jonathan Thomas [photo of James E. Stowers, Jr.] JAMES E. STOWERS, JR. Founder and Co-Chairman of the Board American Century Companies, Inc. [photo of Richard Brown] RICHARD BROWN Co-Chairman of the Board American Century Companies, Inc. TABLE OF CONTENTS Market Perspective. . . . . . . . . . . . . . . . . . . . . . . . . . 2 International Equity Total Returns . . . . . . . . . . . . . . . . 2 INTERNATIONAL STOCK Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . . 5 Top Ten Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Types of Investments in Portfolio and Investments by Country . . . . 6 Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . 7 INTERNATIONAL DISCOVERY Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . . 12 Top Ten Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Types of Investments in Portfolio and Investments by Country . . . . 13 Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . 14 INTERNATIONAL OPPORTUNITIES Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . . 19 Top Ten Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Types of Investments in Portfolio and Investments by Country . . . . 20 Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . 21 Shareholder Fee Examples. . . . . . . . . . . . . . . . . . . . . . . 24 FINANCIAL STATEMENTS Statement of Assets and Liabilities . . . . . . . . . . . . . . . . . 26 Statement of Operations . . . . . . . . . . . . . . . . . . . . . . . 28 Statement of Changes in Net Assets. . . . . . . . . . . . . . . . . . 29 Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . 31 Financial Highlights. . . . . . . . . . . . . . . . . . . . . . . . . 39 Report of Independent Registered Public Accounting Firm . . . . . . . 45 OTHER INFORMATION Proxy Voting Results. . . . . . . . . . . . . . . . . . . . . . . . . 46 Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Share Class Information . . . . . . . . . . . . . . . . . . . . . . . 51 Additional Information. . . . . . . . . . . . . . . . . . . . . . . . 52 Index Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . 53 The opinions expressed in the Market Perspective and each of the Portfolio Commentaries reflect those of the portfolio management team as of the date of the report, and do not necessarily represent the opinions of American Century or any other person in the American Century organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century 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 funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century 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 by third party vendors. To the best of American Century's knowledge, such information is accurate at the time of printing. MARKET PERSPECTIVE [photo of Chief Investment Officer] By Mark On, Chief Investment Officer, International Equity INTERNATIONAL STOCKS SHOWED ROBUST GAINS A strong global economy combined with relatively tame inflation and healthy labor markets helped promote stellar stock gains for the 12 months ended November 30, 2007. Among the developed markets, Europe fared well, with the strongest returns coming from the euro-zone nations. In contrast, performance was flat in Japan, as weak consumer spending, a challenging political climate, and slowing demand from the United States pressured Japan's stocks. Emerging markets remained the world's standout performers, due to optimistic growth forecasts for developing markets and higher commodity prices. U.S. CREDIT WOES RATTLED MARKETS Mounting problems in the U.S. subprime mortgage market led to concerns regarding global economic growth, generating periodic market volatility and contributing to a growing desire globally for less-risky assets. In an effort to soothe frayed nerves, the U.S. Federal Reserve (the Fed), the European Central Bank, and the Bank of England injected liquidity into their banking systems. A mid-September rate cut by the Fed served to strengthen the euro and British pound, relative to the sagging U.S. dollar. Late in the period, the dollar hit new record lows against those currencies. RATES ROSE IN EUROPE AND BRITAIN Healthy economic growth prompted the European Central Bank and the Bank of England to raise interest rates three times during the period. Although inflationary pressures remained at the fore, both banks held off making additional rate increases given the fallout from the credit-market turmoil. Optimism surrounding improving economic growth prompted the Bank of Japan to raise rates in February. Nevertheless, expectations for additional rate hikes went unfulfilled, as sluggish domestic consumption kept the central bank on hold. OPPORTUNITIES ABOUND Although the outlook for international equities remains somewhat uncertain, we believe international stocks present significant opportunities for investors. Combining the higher growth rate of the international markets with our international team's focus on companies with growth acceleration, we believe there is a significant opportunity to deliver attractive performance in the coming year. International Equity Total Returns For the 12 months ended November 30, 2007 (in U.S. dollars) MSCI EM Index 45.57% MSCI EAFE Growth Index 22.32% MSCI Europe Index 19.61% MSCI EAFE Index 17.30% MSCI World Free Index 12.71% MSCI EAFE Value Index 12.30% MSCI Japan Index 2.19% - ------ 2 PERFORMANCE International Stock Total Returns as of November 30, 2007 Average Annual Returns Since Inception 1 year Inception Date INVESTOR CLASS 22.22% 21.20% 3/31/05 MSCI EAFE INDEX 17.30% 20.22% -- Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. - ------ 3 International Stock Growth of $10,000 Over Life of Class $10,000 investment made March 31, 2005
![](https://capedge.com/proxy/N-CSR/0000872825-08-000005/growthintlstock0801.gif)
One-Year Returns Over Life of Class Periods ended November 30 2005* 2006 2007 Investor Class 8.40% 26.07% 22.22% MSCI EAFE Index 8.67% 28.20% 17.30% * From 3/31/05, the Investor Class's inception date. Not annualized. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. - ------ 4 PORTFOLIO COMMENTARY International Stock Portfolio Managers: Alex Tedder and Keith Creveling PERFORMANCE SUMMARY International Stock gained 22.22% during the 12 months ended November 30, 2007. The portfolio's benchmark, the MSCI EAFE Index, advanced 17.30%. Compared to its peers, International Stock outperformed the average return of 15.06%* for the 129 funds in Lipper Inc.'s International Multi-Cap Value Funds category. Strong global economic growth combined with a weak U.S. dollar helped generate strong 12-month performance among international stocks. On an absolute basis, all sectors the portfolio invested in posted positive, double-digit returns and made positive contributions to performance. Stock selection was the primary driver of the portfolio's overall outperformance relative to the benchmark. JAPAN, UK CONTRIBUTED STRONGLY From a country perspective, Japan, the United Kingdom and Germany made the greatest positive contributions to the portfolio's relative performance. Japan, the largest country weighting in the portfolio, benefited from strong stock selection and a significant underweight relative to the benchmark. Stock selection was the overriding positive influence in the United Kingdom and Germany. Maintaining an overweighted position in Germany also helped. Our small allocation to Sweden detracted from performance relative to the benchmark due to poor stock selection. Our small weighting to South Korea was another detractor, due to our unfavorable stock selections and the benchmark's avoidance of the market. FINANCIALS, INDUSTRIALS SHOWED STRONG RETURNS The financials sector, the largest weighting in the portfolio, was the top sector contributor, primarily due to strong stock selection. Specifically, our position in Deutsche Boerse AG, the Germany-based owner of several securities exchanges and one of the portfolio's largest holdings, made a strong showing. The company's plans to acquire U.S.-based International Securities Exchange Holdings to create a massive derivatives Top Ten Holdings as of November 30, 2007 % of % of net assets net assets as of as of 11/30/07 5/31/07 Deutsche Boerse AG 1.7% 1.1% Nintendo Co., Ltd. 1.7% 1.6% Julius Baer Holding AG 1.7% 1.3% National Bank of Greece SA 1.7% 1.6% Saipem SpA 1.6% 1.2% BG Group plc 1.5% 1.2% BHP Billiton Ltd. 1.5% 1.2% Tesco plc 1.4% 1.3% America Movil, SAB de CV ADR 1.4% 1.0% ABB Ltd. 1.4% 1.1% * Data provided by Lipper Inc. - A Reuters Company. ©2007 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Lipper Fund Performance -- Performance data is total return, and is preliminary and subject to revision. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. - ------ 5 International Stock market helped drive results. In addition, our position in China Merchants Bank, an emerging-market investment not represented in the benchmark, boosted performance, as the stock returned 142% during the reporting period. The portfolio's holdings in the industrials sector also contributed positively. Strong stock selection combined with an overweight to the sector drove outperformance. In particular, our stocks in the electrical equipment industry performed well, including Q-Cells AG, a German manufacturer of solar cells, and Vestas Wind Systems, a Danish supplier of wind power solutions. Our information technology stocks also were strong contributors, led by Japan's Nintendo, a videogame manufacturer, which advanced 160% during the reporting period on strong sales of its Wii gaming system. Nintendo was the portfolio's best-performing stock for the period. TELECOM, CONSUMER SECTORS LAGGED Despite a healthy absolute return of 28.47%, the portfolio's telecommunication services sector was the largest detractor on a relative basis. Our underweight to the sector accounted for the bulk of the underperformance. The portfolio's consumer staples sector returned 24.48% for the reporting period, but nevertheless weighed on relative performance as unfavorable stock selection led to lagging results compared to the benchmark. The consumer discretionary sector also detracted, due to our overweight and slumping stocks, with our stock selection in the automobile industry having the largest negative impact. OUTLOOK International Stock seeks companies located outside the United States exhibiting accelerating growth characteristics. Our analysis indicates the outlook for such companies remains favorable. The portfolio has broad exposure to high-quality growth companies in numerous markets, and we believe these companies will deliver solid returns, even during volatile markets. Types of Investments in Portfolio % of % of net assets net assets as of as of 11/30/07 5/31/07 Foreign Common Stocks 99.9% 98.5% Foreign Preferred Stocks -- 0.4% TOTAL EQUITY EXPOSURE 99.9% 98.9% Temporary Cash Investments -- 0.9% Other Assets and Liabilities(1) 0.1% 0.2% (1) Includes securities lending collateral and other assets and liabilities. Investments by Country as of November 30, 2007 % of % of net assets net assets as of as of 11/30/07 5/31/07 Japan 15.5% 18.2% United Kingdom 13.6% 14.7% Switzerland 10.8% 11.7% Germany 10.0% 10.5% France 8.6% 9.8% Australia 5.4% 4.8% Spain 3.9% 1.5% Canada 3.7% 0.8% Italy 2.7% 4.0% Denmark 2.2% 1.0% Belgium 2.1% 1.7% Norway 2.0% 2.9% Singapore 2.0% 0.7% Other Countries 17.4% 16.6% Cash and Equivalents(2) 0.1% 1.1% (2) Includes temporary cash investments, securities lending collateral and other assets and liabilities. - ------ 6 SCHEDULE OF INVESTMENTS International Stock NOVEMBER 30, 2007 Shares ($ IN THOUSANDS) Value Common Stocks -- 99.9% AUSTRALIA -- 5.4% 10,060 Babcock & Brown Ltd.(1) $ 235 56,711 BHP Billiton Ltd.(1) 2,155 192,295 Boart Longyear Group(2) 412 49,016 CSL Ltd. 1,514 98,809 Oxiana Ltd.(1) 350 55,149 QBE Insurance Group Ltd. 1,597 8,329 Rio Tinto Ltd.(1) 1,072 19,977 Westpac Banking Corp. 501 -------- 7,836 -------- AUSTRIA -- 0.6% 11,400 Erste Bank der oesterreichischen Sparkassen AG 822 -------- BELGIUM -- 2.1% 9,899 KBC Groupe 1,370 26,173 SES SA Fiduciary Depositary Receipt(2) 658 4,235 Umicore 993 -------- 3,021 -------- BRAZIL -- 1.0% 9,400 Bolsa de Mercadorias e Futuros - BM&F SA(2) 127 48,100 Redecard SA 873 24,600 Unibanco-Uniao de Bancos Brasileiros SA 364 -------- 1,364 -------- CANADA -- 3.7% 11,926 EnCana Corp. 778 14,268 Research In Motion Ltd.(2) 1,624 35,809 Rogers Communications Inc. Cl B 1,489 13,404 Shoppers Drug Mart Corp. 735 7,821 Suncor Energy Inc. 748 -------- 5,374 -------- CZECH REPUBLIC -- 1.1% 21,027 CEZ AS 1,554 -------- DENMARK -- 2.2% 13,698 Novo Nordisk AS B Shares 1,732 15,374 Vestas Wind Systems AS(2) 1,454 -------- 3,186 -------- FINLAND -- 1.4% 5,204 Metso Oyj 282 42,445 Nokia Oyj 1,672 -------- 1,954 -------- Shares ($ IN THOUSANDS) Value FRANCE -- 8.6% 7,773 Accor SA $ 659 6,618 ALSTOM Co. 1,487 31,130 AXA SA 1,263 11,927 Groupe Danone(1) 1,053 5,232 L'Oreal SA 726 5,576 PPR SA 940 2,767 Renault SA 403 3,296 Schneider Electric SA 457 11,276 Societe Generale 1,728 17,627 Suez SA 1,168 23,572 Total SA(1) 1,908 9,216 Vinci SA 730 -------- 12,522 -------- GERMANY -- 10.0% 5,206 Allianz SE 1,072 9,831 BASF AG 1,363 6,429 Continental AG 837 13,499 Deutsche Boerse AG 2,531 28,086 Fresenius Medical Care AG & Co. KGaA 1,568 31,807 GEA Group AG(2) 1,153 8,513 Hochtief AG 1,126 6,093 K+S AG 1,244 3,423 Linde AG 448 9,879 Q-Cells AG(2) 1,379 11,166 SAP AG 569 7,391 Siemens AG 1,122 -------- 14,412 -------- GREECE -- 1.7% 35,980 National Bank of Greece SA 2,406 -------- HONG KONG -- 1.5% 99,000 Esprit Holdings Ltd. 1,494 37,000 Hang Seng Bank Ltd. 708 -------- 2,202 -------- INDIA -- 1.3% 13,192 Bharat Heavy Electricals Ltd. 898 17,990 DLF Ltd. 429 22,871 Tata Consultancy Services Ltd. 588 -------- 1,915 -------- IRELAND -- 0.6% 18,928 Anglo Irish Bank Corp. plc 330 26,378 Kingspan Group plc 558 -------- 888 -------- - ------ 7 International Stock Shares ($ IN THOUSANDS) Value ITALY -- 2.7% 17,089 ENI SpA $ 611 15,738 Fiat SpA 433 18,708 Finmeccanica SpA 559 57,846 Saipem SpA 2,332 -------- 3,935 -------- JAPAN -- 15.5% 30,200 Canon, Inc. 1,591 38,100 Daikin Industries Ltd. 1,962 7,400 Daito Trust Construction Co., Ltd. 355 104 East Japan Railway Co. 860 4,800 Fanuc Ltd. 502 14,700 Ibiden Co. Ltd.(1) 1,162 49,000 Isuzu Motors Ltd. 227 249 Japan Tobacco Inc. 1,410 96,000 Kobe Steel Ltd. 316 30,500 Kuraray Co. Ltd. 375 10,700 Makita Corp. 476 169,000 Marubeni Corp. 1,297 53,000 Mitsubishi Electric Corp. 605 4,100 Nintendo Co., Ltd. 2,520 95,000 Nippon Yusen Kabushiki Kaisha 825 454 NTT DoCoMo, Inc. 720 279 Sony Financial Holdings Inc.(2) 1,054 89,000 Sumitomo Chemical Co., Ltd. 759 42,000 Sumitomo Heavy Industries Ltd. 456 135,000 Sumitomo Metal Industries Ltd.(1) 599 39,000 Sumitomo Realty & Development Co. Ltd. 1,185 15,300 Terumo Corp. 773 31,700 Toyota Motor Corp. 1,785 5,140 Yamada Denki Co. Ltd. 596 -------- 22,410 -------- MALAYSIA -- 0.6% 288,600 Bumiputra - Commerce Holdings Bhd 921 -------- MEXICO -- 1.4% 33,227 America Movil, SAB de CV ADR 2,048 -------- NETHERLANDS -- 1.4% 10,741 ASML Holding N.V. 373 4,673 CNH Global N.V. 287 20,443 Heineken N.V. 1,337 -------- 1,997 -------- Shares ($ IN THOUSANDS) Value NORWAY -- 2.0% 26,205 Aker Kvaerner ASA $ 747 51,525 StatoilHydro ASA 1,674 13,550 Yara International ASA 515 -------- 2,936 -------- PEOPLE'S REPUBLIC OF CHINA -- 1.3% 222,000 Agile Property Holdings Ltd. 442 1,169 Alibaba.com Ltd.(1)(2) 6 288,000 China Merchants Bank Co., Ltd. Cl H 1,337 -------- 1,785 -------- SINGAPORE -- 2.0% 186,000 Keppel Corp. Ltd. 1,731 203,000 Oversea-Chinese Banking Corp. 1,197 -------- 2,928 -------- SOUTH AFRICA -- 1.3% 17,015 Anglo American plc 1,152 38,423 MTN Group Ltd. 774 -------- 1,926 -------- SOUTH KOREA -- 0.2% 546 Samsung Electronics 334 -------- SPAIN -- 3.9% 58,405 Banco Bilbao Vizcaya Argentaria SA 1,448 44,245 Cintra Concesiones de Infraestructuras de Transporte SA(1) 707 1,574 Cintra Concesiones de Infraestructuras de Transporte SA Entitlement Shares 25 27,233 Inditex SA 1,891 48,816 Telefonica SA 1,635 -------- 5,706 -------- SWITZERLAND -- 10.8% 67,403 ABB Ltd. 1,982 12,148 Actelion Ltd.(2) 539 14,365 Compagnie Financiere Richemont SA Cl A 988 15,607 Holcim Ltd. 1,672 29,916 Julius Baer Holding AG 2,512 4,073 Nestle SA 1,949 14,664 Novartis AG 831 9,394 Roche Holding AG 1,785 4,703 Sonova Holding AG 504 7,602 Syngenta AG 1,884 19,397 UBS AG 976 -------- 15,622 -------- - ------ 8 International Stock Shares ($ IN THOUSANDS) Value TAIWAN (REPUBLIC OF CHINA) -- 1.4% 411,000 AU Optronics Corp. $ 803 198,320 Hon Hai Precision Industry Co., Ltd. 1,271 -------- 2,074 -------- TURKEY -- 0.6% 103,581 Turkiye Garanti Bankasi AS 910 -------- UNITED KINGDOM -- 13.6% 30,055 Admiral Group plc 644 33,999 Aggreko plc 355 40,858 AMEC plc 647 28,016 Barclays plc 325 104,650 BG Group plc 2,193 172 British American Tobacco plc 7 8,813 British Sky Broadcasting Group plc 113 139,518 Burberry Group plc 1,652 42,500 Capita Group plc 648 43,634 Compass Group plc 286 32,075 easyJet plc(2) 371 17,674 GlaxoSmithKline plc 467 36,876 HSBC Holdings plc 630 131,356 International Power plc 1,260 107,885 Man Group plc 1,236 123,298 Man Group plc Cl B 173 28,786 Reckitt Benckiser Group plc 1,710 52,740 Reed Elsevier plc 663 55,836 Scottish and Southern Energy plc 1,825 209,097 Tesco plc 2,061 121,381 TUI Travel plc(2) 687 483,686 Vodafone Group plc 1,811 -------- 19,764 -------- TOTAL COMMON STOCKS (Cost $114,928) 144,752 -------- Temporary Cash Investments - Securities Lending Collateral(3) -- 5.2% Repurchase Agreement, BNP Paribas, (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.65%, dated 11/30/07, due 12/3/07 (Delivery value $3,001) 3,000 Repurchase Agreement, Deutsche Bank Securities, Inc., (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.56%, dated 11/30/07, due 12/3/07 (Delivery value $1,502) 1,501 Shares ($ IN THOUSANDS) Value Repurchase Agreement, Lehman Brothers, Inc., (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.64%, dated 11/30/07, due 12/3/07 (Delivery value $3,001) $3,000 -------- TOTAL TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL (Cost $7,501) 7,501 -------- TOTAL INVESTMENT SECURITIES -- 105.1% (Cost $122,429) 152,253 -------- OTHER ASSETS AND LIABILITIES -- (5.1)% (7,441) -------- TOTAL NET ASSETS -- 100.0% $144,812 ======== Market Sector Diversification (as a % of net assets) Financials 21.6% Industrials 17.1% Consumer Discretionary 10.5% Materials 10.3% Information Technology 8.6% Energy 7.6% Consumer Staples 7.6% Health Care 6.7% Telecommunication Services 5.9% Utilities 4.0% Cash and Equivalents* 0.1% * Includes securities lending collateral and other assets and liabilities. Notes to Schedule of Investments ADR = American Depositary Receipt (1) Security, or a portion thereof, was on loan as of November 30, 2007. (2) Non-income producing. (3) Investments represent purchases made by the lending agent with cash collateral received through securities lending transactions. As of November 30, 2007, securities with an aggregate value of $135,480 (in thousands), which represented 93.6% of total net assets, were valued in accordance with alternative pricing procedures adopted by the Board of Directors. See Notes to Financial Statements. - ------ 9 PERFORMANCE International Discovery Total Returns as of November 30, 2007 Average Annual Returns Since Inception 1 year 5 years 10 years Inception Date INVESTOR CLASS 32.18% 29.52% 17.48% 17.45% 4/1/94 S&P/CITIGROUP EMI GROWTH WORLD EX-US 14.82% 26.10% 10.27% 7.93%(1) -- Institutional Class 32.45% 29.75% -- 17.68% 1/2/98 Advisor Class 31.83% 29.20% -- 15.24% 4/28/98 (1) Since 3/31/94, the date nearest the Investor Class's inception for which data are available. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. - ------ 10 International Discovery Growth of $10,000 Over 10 Years $10,000 investment made November 30, 1997
![](https://capedge.com/proxy/N-CSR/0000872825-08-000005/growthintldiscovery0801.gif)
One-Year Returns Over 10 Years Periods ended November 30 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Investor Class 14.79% 65.12% -1.27% -20.17% -8.00% 37.05% 18.76% 24.30% 36.41% 32.18% S&P/Citigroup EMI Growth World ex-US 7.30% 27.50% -14.20% -20.23% -10.96% 38.79% 27.58% 19.21% 31.56% 14.82% Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. - ------ 11 PORTFOLIO COMMENTARY International Discovery Portfolio Managers: Mark Kopinski and Brian Brady PERFORMANCE SUMMARY International Discovery gained 32.18%* during the 12 months ended November 30, 2007. The portfolio's benchmark, the S&P/Citigroup EMI Growth World ex-U.S. Index, advanced 14.82%. Compared to its peers, International Discovery outperformed the average return of 18.85%** for the 96 funds in Lipper Inc.'s International Small/Mid Cap Growth Funds category. Sustained global economic growth combined with a weak U.S. dollar helped generate strong 12-month performance among international stocks. The portfolio's holdings benefited from this trend. Overall, stock selection accounted for the portfolio's outperformance relative to the benchmark. On an absolute basis, all sectors in the portfolio posted positive returns and contributed to performance. The utilities sector, generally not viewed as a growth sector, was the only exception. Total returns in seven of the portfolio's 10 market sectors exceeded 33% for the reporting period, outperforming the benchmark handsomely. COUNTRY GAINS WERE WIDESPREAD From a country perspective, the portfolio enjoyed positive performance from most markets in which it invested. In particular, markets in Japan, Australia and China offered the greatest contributions on a relative basis. While benchmark returns for Japan were among the smallest, stock selection was a particularly strong factor among our holdings. Our overweights in Australia and China combined with good stock selection also contributed favorably. Taiwan (which was not represented in the benchmark), Greece and Singapore comprised the largest detractors to the portfolio's relative performance. On an absolute basis, performance in Taiwan was positive, but currency factors led to an overall negative effect on relative performance. The portfolio underperformed the benchmark in Greece, where stock selection was the culprit. In Singapore, our underweight accounted for the lagging results. Top Ten Holdings as of November 30, 2007 % of % of net assets net assets as of as of 11/30/07 5/31/07 CSL Ltd. 3.1% 2.5% Boart Longyear Group 2.4% 2.3% Mitsumi Electric Co., Ltd. 2.3% 0.7% Gildan Activewear Inc. 2.2% 1.5% IG Group Holdings plc 2.2% 1.0% NGK Insulators Ltd. 2.0% 2.2% Millicom International Cellular SA 2.0% 2.9% FLSmidth & Co. AS 1.9% 1.3% Focus Media Holding Ltd. ADR 1.9% 1.6% Lonza Group AG 1.9% 2.0% * All fund returns referenced in this commentary are for Investor Class shares. ** The Lipper Inc.'s International Small/Mid Cap Growth Funds category average returns for the five- and 10-year periods as of November 30, 2007, were 28.00% and 16.23%, respectively. Data provided by Lipper Inc. - A Reuters Company. ©2007 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Lipper Fund Performance - Performance data is total return, and is preliminary and subject to revision. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. - ------ 12 International Discovery AUSTRALIAN DRUG MAKER CONTRIBUTED STRONGLY Our position in Australian vaccine and drug treatment maker CSL, which we have owned since early 2004, was among the portfolio's top contributors. Continued strong financial results, positive product developments, and royalties received from the popular Gardasil vaccine for cervical cancer buoyed performance. CSL is the largest position in the portfolio. STOCK PICKS IN JAPAN BOOSTED SECTOR RESULTS Industrials, the portfolio's largest sector weighting, made the greatest contribution to relative performance, due to strong stock selection and an overweight to the sector. Our position in Japan Steel Works, a manufacturer of fabricating machinery, was particularly helpful, as the stock was among the portfolio's top 10 contributors for the reporting period. The company's stock participated in a rally among suppliers to the nuclear power industry, as officials in Texas announced plans to build two power-generating reactors. Similarly, stock selection in Japan contributed to our consumer discretionary sector's favorable performance. For example, the auto components industry was the sector's top contributor, primarily due to NGK Insulators, a Japanese manufacturer of various insulation products and one of the portfolio's best performers for the reporting period. The company's stock advanced on upgraded sales and profit projections. UTILITIES SECTOR LAGGED Our utilities sector, the smallest sector in the portfolio, was the only sector that detracted from relative performance. Stock selection primarily was to blame, as the few positions we owned performed poorly. Also, our underweight relative to the benchmark was a slightly negative influence. OUTLOOK We remain committed to our investment strategy of seeking the stocks of small- to mid-sized foreign companies we believe have a high likelihood of growing earnings and revenues at an improving rate. We select these stocks with the assistance of extensive company-level research that focuses on identifying accelerating growth characteristics. Types of Investments in Portfolio % of % of net assets net assets as of as of 11/30/07 5/31/07 Foreign Common Stocks 96.9% 99.0% Temporary Cash Investments 3.6% -- Other Assets and Liabilities(1) (0.5)% 1.0% (1) Includes securities lending collateral and other assets and liabilities. Investments by Country as of November 30, 2007 % of % of net assets net assets as of as of 11/30/07 5/31/07 United Kingdom 15.1% 11.8% Australia 12.4% 12.1% Japan 10.6% 10.5% Germany 6.6% 8.3% Canada 5.6% 7.3% People's Republic of China 4.0% 3.4% Switzerland 4.0% 6.0% Spain 3.5% 1.6% South Africa 3.2% 0.6% Norway 2.8% 1.6% Hong Kong 2.5% 0.5% Taiwan (Republic of China) 2.3% 2.4% Finland 2.2% 0.8% Singapore 2.1% 1.2% Luxembourg 2.0% 2.9% Other Countries 18.0% 28.0% Cash and Equivalents(2) 3.1% 1.0% (2) Includes temporary cash investments, securities lending collateral and other assets and liabilities. - ------ 13 SCHEDULE OF INVESTMENTS International Discovery NOVEMBER 30, 2007 Shares ($ IN THOUSANDS) Value Common Stocks -- 96.9% AUSTRALIA -- 12.4% 6,195,000 Arrow Energy NL(1) $ 16,876 1,152,600 Babcock & Brown Ltd. 26,929 6,108,200 Babcock & Brown Power Ltd. 16,176 21,761,500 Boart Longyear Group(1) 46,621 1,899,900 CSL Ltd. 58,696 147,100 Incitec Pivot Ltd. 11,841 5,999,100 Oxiana Ltd. 21,268 1,805,900 Paladin Energy Ltd.(1) 10,961 771,600 Transfield Services Ltd. 10,497 366,200 WorleyParsons Ltd. 16,252 ---------- 236,117 ---------- AUSTRIA -- 0.3% 108,200 Andritz AG 6,622 ---------- BELGIUM -- 1.5% 631,700 Telenet Group Holding N.V. 18,150 43,400 Umicore 10,174 ---------- 28,324 ---------- BERMUDA -- 0.6% 10,067,000 Synear Food Holdings Ltd.(1) 12,172 ---------- BRAZIL -- 0.7% 428,300 Rossi Residencial SA 12,525 ---------- CANADA -- 5.6% 382,000 Agrium Inc. 22,095 1,098,000 Gildan Activewear Inc.(1) 41,721 465,200 Petrobank Energy & Resources Ltd.(1) 23,428 928,900 Sino-Forest Corp.(1) 20,440 ---------- 107,684 ---------- DENMARK -- 1.9% 362,800 FLSmidth & Co. AS 36,671 ---------- EGYPT -- 1.3% 1,387,300 Egyptian Financial Group - Hermes Holding SAE 14,430 799,900 Orascom Hotels & Development 11,134 ---------- 25,564 ---------- FINLAND -- 2.2% 910,900 Nokian Renkaat Oyj 34,738 106,200 Outotec Oyj 6,725 ---------- 41,463 ---------- Shares ($ IN THOUSANDS) Value FRANCE -- 0.4% 53,000 Nexans SA $ 7,092 ---------- GERMANY -- 6.6% 106,600 ElringKlinger AG 11,332 115,600 Hamburger Hafen und Logistik AG(1) 10,153 267,826 IVG Immobilien AG 10,554 115,900 K+S AG 23,671 195,400 Leoni AG 10,270 165,100 SGL Carbon AG(1) 9,325 368,600 SolarWorld AG 22,009 1,190,639 United Internet AG 27,737 ---------- 125,051 ---------- GREECE -- 1.5% 1,477,752 Intralot SA 27,483 ---------- HONG KONG -- 2.5% 6,988,000 AAC Acoustic Technology Holdings Inc.(1) 9,462 8,956,000 C C Land Holdings Ltd. 15,299 2,037,000 Kowloon Development Co. Ltd. 5,146 10,660,000 Melco International Development Ltd. 17,143 ---------- 47,050 ---------- INDIA -- 1.3% 113,100 Aban Offshore Ltd.(1) 13,179 307,500 ABB India Ltd. 12,114 ---------- 25,293 ---------- IRELAND -- 0.7% 240,700 ICON plc ADR(1) 14,276 ---------- ISRAEL -- 0.6% 1,391,000 Makhteshim-Agan Industries Ltd.(1) 11,864 ---------- ITALY -- 1.4% 962,418 Geox SpA 21,534 187,400 Prysmian SpA(1) 4,713 ---------- 26,247 ---------- JAPAN -- 10.6% 522,700 Capcom Co. Ltd. 14,080 796,000 Hitachi Chemical Co., Ltd. 18,861 1,659,000 Japan Steel Works Ltd. (The) 24,416 185,900 Konami Corp. 5,483 1,511,500 Kuraray Co. Ltd. 18,589 154,800 Makita Corp. 6,887 1,098,500 Mitsumi Electric Co., Ltd. 43,214 - ------ 14 International Discovery Shares ($ IN THOUSANDS) Value 1,259,000 NGK Insulators Ltd. $38,934 3,082,000 SANYO Electric Co., Ltd.(1) 5,899 277,500 Shinko Electric Industries Co., Ltd. 6,076 209,300 Toyo Tanso Co. Ltd. 20,128 ---------- 202,567 ---------- LUXEMBOURG -- 2.0% 325,200 Millicom International Cellular SA(1) 38,790 ---------- NETHERLANDS -- 1.4% 311,600 Fugro N.V. CVA 25,655 ---------- NORWAY -- 2.8% 3,762,905 Pronova BioPharma AS(1) 14,128 973,100 SeaDrill Ltd.(1) 21,108 1,347,300 Sevan Marine ASA(1) 18,036 ---------- 53,272 ---------- PEOPLE'S REPUBLIC OF CHINA -- 4.0% 8,424,901 Agile Property Holdings Ltd. 16,790 444,539 China Nepstar Chain Drugstore Ltd. ADR(1)(2) 8,282 646,000 Focus Media Holding Ltd. ADR(1)(2) 36,460 351,000 Mindray Medical International Ltd. ADR(2) 14,216 ---------- 75,748 ---------- RUSSIAN FEDERATION -- 0.5% 82,400 Wimm-Bill-Dann Foods OJSC ADR 9,441 ---------- SINGAPORE -- 2.1% 19,055,600 Noble Group Ltd. 29,500 4,260,000 Yanlord Land Group Ltd. 11,041 ---------- 40,541 ---------- SOUTH AFRICA -- 3.2% 626,700 Aquarius Platinum Ltd. 22,860 976,100 Exxaro Resources Ltd. 14,886 1,692,200 Murray & Roberts Holdings Ltd. 23,905 ---------- 61,651 ---------- SOUTH KOREA -- 1.6% 96,100 Hyundai Steel Co. 8,141 106,200 SODIFF Advanced Materials Co. Ltd. 7,768 6,412,000 STX Pan Ocean Co. Ltd. 13,998 ---------- 29,907 ---------- Shares ($ IN THOUSANDS) Value SPAIN -- 3.5% 296,900 Bolsas y Mercados Espanoles $ 21,260 482,940 Solaria Energia y Medio Ambiente SA(1) 14,403 430,000 Tecnicas Reunidas SA 30,987 ---------- 66,650 ---------- SWEDEN -- 0.3% 285,700 Hexagon AB Cl B 6,475 ---------- SWITZERLAND -- 4.0% 2,706 Barry Callebaut AG 2,112 70,400 Basilea Pharmaceutica AG(1) 12,183 7,800 Lindt & Spruengli AG 25,880 302,300 Lonza Group AG 35,373 ---------- 75,548 ---------- TAIWAN (REPUBLIC OF CHINA) -- 2.3% 3,923,368 Epistar Corp. 16,356 53,250,916 HannStar Display Corp.(1) 23,805 457,000 Motech Industries Inc. 3,503 ---------- 43,664 ---------- THAILAND -- 0.6% 891,700 Banpu Public Company Ltd. 11,607 ---------- TURKEY -- 1.0% 2,272,639 Asya Katilim Bankasi AS(1) 18,747 ---------- UNITED ARAB EMIRATES -- 0.4% 1,136,400 Lamprell plc 8,419 ---------- UNITED KINGDOM -- 15.1% 1,487,300 Admiral Group plc 31,885 986,900 Aggreko plc 10,291 1,106,700 Autonomy Corp. plc(1) 18,161 796,400 AVEVA Group plc 15,486 1,420,600 Carphone Warehouse Group plc 10,678 316,200 De La Rue plc 5,676 1,026,300 Expro International Group plc 21,394 2,334,800 Ferrexpo plc(1) 11,535 4,884,000 IG Group Holdings plc 41,115 988,200 Intertek Group plc 18,376 527,300 Rotork plc 10,676 2,487,100 Serco Group plc 24,292 2,268,657 VT Group plc 30,094 1,075,400 Wellstream Holdings plc(1) 23,183 605,400 WS Atkins plc 15,046 ---------- 287,888 ---------- TOTAL COMMON STOCKS (Cost $1,431,884) 1,848,068 ---------- - ------ 15 International Discovery Shares ($ IN THOUSANDS) Value Temporary Cash Investments -- 3.6% Repurchase Agreement, Credit Suisse First Boston, Inc., (collateralized by various U.S. Treasury obligations, 6.25%, 8/15/23, valued at $39,347), in a joint trading account at 3.05%, dated 11/30/07, due 12/3/07 (Delivery value $38,610) $ 38,600 Repurchase Agreement, Deutsche Bank Securities, Inc., (collateralized by various U.S. Treasury obligations, 2.625%, 7/15/17, valued at $30,456), in a joint trading account at 3.10%, dated 11/30/07, due 12/3/07 (Delivery value $29,808) 29,800 ---------- TOTAL TEMPORARY CASH INVESTMENTS (Cost $68,400) 68,400 ---------- Temporary Cash Investments -- Securities Lending Collateral(3) -- 2.6% Repurchase Agreement, BNP Paribas, (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.65%, dated 11/30/07, due 12/3/07 (Delivery value $17,507) 17,500 Repurchase Agreement, Deutsche Bank Securities, Inc., (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.56%, dated 11/30/07, due 12/3/07 (Delivery value $14,856) 14,850 Repurchase Agreement, Lehman Brothers, Inc., (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.64%, dated 11/30/07, due 12/3/07 (Delivery value $17,507) 17,500 ---------- TOTAL TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL (Cost $49,850) 49,850 ---------- TOTAL INVESTMENT SECURITIES -- 103.1% (Cost $1,550,134) 1,966,318 ---------- OTHER ASSETS AND LIABILITIES -- (3.1)% (59,766) ---------- TOTAL NET ASSETS -- 100.0% $1,906,552 ========== Market Sector Diversification (as a % of net assets) Industrials 22.6% Consumer Discretionary 14.1% Materials 14.1% Financials 12.1% Energy 11.0% Information Technology 10.2% Health Care 6.0% Consumer Staples 3.0% Telecommunication Services 3.0% Utilities 0.8% Cash and Equivalents* 3.1% * Includes temporary cash investments, securities lending collateral and other assets and liabilities. Notes to Schedule of Investments ADR = American Depositary Receipt CVA = Certificaten Van Aandelen OJSC = Open Joint Stock Company (1) Non-income producing. (2) Security, or a portion thereof, was on loan as of November 30, 2007. (3) Investments represent purchases made by the lending agent with cash collateral received through securities lending transactions. As of November 30, 2007, securities with an aggregate value of $1,606,395 (in thousands), which represented 84.3% of total net assets, were valued in accordance with alternative pricing procedures adopted by the Board of Directors. See Notes to Financial Statements. - ------ 16 PERFORMANCE International Opportunities Total Returns as of November 30, 2007 Average Annual Returns Since Inception 1 year 5 years Inception Date INVESTOR CLASS 33.73% 36.01% 25.62% 6/1/01 S&P/CITIGROUP EMI GROWTH WORLD EX-US 14.82% 26.10% 14.62%(1) -- Institutional Class 33.97% -- 36.75% 1/9/03 (1) Since 5/31/01, the date nearest the Investor Class's inception for which data are available. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. - ------ 17 International Opportunities Growth of $10,000 Over Life of Class $10,000 investment made June 1, 2001
![](https://capedge.com/proxy/N-CSR/0000872825-08-000005/growthintlopportunities0801.gif)
One-Year Returns Over Life of Class Periods ended November 30 2001* 2002 2003 2004 2005 2006 2007 Investor Class -2.60% -2.87% 61.54% 27.14% 35.28% 25.37% 33.73% S&P/Citigroup EMI Growth World ex-US -14.51% -10.96% 38.79% 27.58% 19.21% 31.56% 14.82% * From 6/1/01, the Investor Class's inception date. Index data from 5/31/01, the date nearest the Investor Class's inception for which data are available. Not annualized. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. - ------ 18 PORTFOLIO COMMENTARY International Opportunities Portfolio Managers: Federico Laffan and Trevor Gurwich PERFORMANCE SUMMARY International Opportunities gained 33.73%* during the 12 months ended November 30, 2007. The portfolio's benchmark, the S&P/Citigroup EMI Growth World ex-U.S. Index, advanced 14.82%. Compared to its peers, International Opportunities outperformed the average return of 18.85%** for the 96 funds in Lipper Inc.'s International Small/Mid Cap Growth Funds category. Strong global economic growth combined with a weak U.S. dollar helped generate strong 12-month performance among international stocks. On an absolute basis, all sectors the portfolio invested in posted positive, double-digit--and, in the case of energy, triple-digit--returns and contributed to absolute performance, except telecommunication services. Compared to the benchmark, eight out of 10 of the portfolio's market sectors outperformed, with the exception of utilities and telecommunication services. Overall, our stock selection was stellar, accounting for the bulk of the portfolio's outperformance. COUNTRY CONTRIBUTIONS WERE BROAD From a country perspective, most markets in which the portfolio invested contributed positively to total return. Markets in Japan, China, and Singapore were the strongest contributors to relative performance. Stock selection was positive in all three markets, and an underweight in Japan and overweights in China and Singapore contributed to the portfolio's outperformance versus the benchmark. Our exposure to Australia was the greatest detractor relative to the benchmark. A significant underweight combined with poor stock selection accounted for our underperformance. Our underweight in South Korea also contributed to lagging performance for that market. In addition, our exposure to Taiwan, which was not in the benchmark, detracted from relative performance. Top Ten Holdings as of November 30, 2007 % of % of net assets net assets as of as of 11/30/07 5/31/07 Straits Asia Resources Ltd. 2.2% 0.8% Hosiden Corp. 2.2% -- Major Drilling Group International Inc. 2.1% -- Tubacex SA 1.9% 0.5% Southern Cross Healthcare Ltd. 1.9% 1.9% Grifols SA 1.8% 1.6% Capcom Co. Ltd. 1.8% 0.6% China National Building Material Co. Ltd. Cl H 1.8% 1.6% PT Bakrie Sumatera Plantations Tbk 1.7% 0.8% Mount Gibson Iron Ltd. 1.6% -- * All fund returns referenced in this commentary are for Investor Class shares. ** The Lipper Inc.'s International Small/Mid Cap Growth Funds category average return for the five-year period as of November 30, 2007, was 28.00%. Data provided by Lipper Inc. - A Reuters Company. ©2007 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Lipper Fund Performance -- Performance data is total return, and is preliminary and subject to revision. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. - ------ 19 CHINA DEMAND HELPED PERFORMANCE From a sector perspective, our consumer discretionary holdings made the greatest contribution to the portfolio's total return, with strong stock selection driving results. For example, China's Li Ning, a fast-growing sports-apparel retailer not represented in the benchmark, was the sector's top contributor to performance. Growing consumer demand in China led to strong sales growth and soaring profits for the company. Favorable stock selection also led to strong performance for the portfolio's financials and energy sectors. China's Shenzhen Investment, a property developer not represented in the benchmark, was the financial sector's leading contributor. In energy, our overweighted position in Straits Asia Resources, a Singapore-based mining company, contributed strongly to performance on rising coal prices and robust demand. TELECOMM, UTILITIES SECTORS LAGGED Our stocks in the utilities sector, the portfolio's second-smallest sector weighting, represented the largest performance detractor in the portfolio. Our underweight combined with poor stock selection led to the lagging results. The portfolio's telecommunication services sector also detracted from relative performance. Stock selection was the major culprit, as the few positions we owned in this sector (the portfolio's smallest) performed poorly. Most of the benchmark companies in the telecommunication and utilities sectors have market capitalizations that exceed the portfolio's requirements. OUTLOOK We remain committed to our investment strategy of seeking the stocks of small, foreign companies we believe have a high likelihood of growing earnings and revenues at an improving rate. We select these stocks with the assistance of extensive company-level research that focuses on identifying accelerating growth characteristics. Types of Investments in Portfolio % of % of net assets net assets as of as of 11/30/07 5/31/07 Foreign Common Stocks 96.9% 97.4% Foreign Preferred Stocks 0.6% 1.2% TOTAL EQUITY EXPOSURE 97.5% 98.6% Temporary Cash Investments 2.1% 1.0% Other Assets and Liabilities(1) 0.4% 0.4% (1) Includes securities lending collateral and other assets and liabilities. Investments by Country as of November 30, 2007 % of % of net assets net assets as of as of 11/30/07 5/31/07 Japan 11.5% 6.9% United Kingdom 11.0% 10.5% People's Republic of China 7.3% 5.6% Germany 6.7% 10.6% Canada 5.7% 2.6% Hong Kong 5.6% 2.7% Australia 5.2% 1.4% Singapore 5.1% 4.2% South Korea 4.8% 2.0% Spain 4.7% 3.9% Switzerland 3.9% 5.9% Norway 3.7% 4.8% France 3.3% 4.9% Netherlands 2.8% 6.1% India 2.4% - Indonesia 2.3% 1.2% Greece 2.1% 3.0% Other Countries 9.4% 22.3% Cash and Equivalents(2) 2.5% 1.4% (2) Includes temporary cash investments, securities lending collateral and other assets and liabilities. - ------ 20 SCHEDULE OF INVESTMENTS International Opportunities NOVEMBER 30, 2007 Shares ($ IN THOUSANDS) Value Common Stocks -- 96.9% AUSTRALIA -- 5.2% 604,058 Arrow Energy NL(1)(2) $1,646 265,694 Bradken Ltd. 3,184 787,246 HFA Holdings Ltd.(2) 1,508 1,475,639 Mount Gibson Iron Ltd.(1) 3,408 532,970 NRW Holdings Ltd.(1) 1,443 -------- 11,189 -------- BELGIUM -- 1.0% 18,859 EVS Broadcast Equipment SA 2,232 -------- BRAZIL -- 1.3% 179,800 Drogasil SA 1,271 54,386 Dufry South America Ltd. BDR(1) 1,566 -------- 2,837 -------- CANADA -- 5.7% 664,400 Bayou Bend Petroleum Ltd.(1) 309 86,331 Canadian Western Bank(2) 2,334 30,993 Forzani Group Ltd. (The) Cl A(1) 438 77,634 Major Drilling Group International Inc.(1) 4,443 63,009 Petrobank Energy & Resources Ltd.(1)(2) 3,173 41,966 Transat A.T. Inc. Cl B 1,566 -------- 12,263 -------- DENMARK -- 0.7% 21,876 East Asiatic Co. Ltd. AS (The)(2) 1,497 -------- FRANCE -- 3.3% 9,921 Eurofins Scientific SA 1,170 11,469 Nexans SA 1,535 34,881 Sechilienne-Sidec(2) 2,792 28,020 SeLoger.com(1) 1,689 -------- 7,186 -------- GERMANY -- 6.1% 87,767 D+S europe AG(1)(2) 1,671 97,549 Gildemeister AG 2,449 141,268 Kontron AG 3,046 18,521 Leoni AG 973 6,796 Software AG 555 4,813 SOLON AG fur Solartechnik(1) 514 10,105 Vossloh AG 1,094 168,657 Wire Card AG(1) 2,836 -------- 13,138 -------- Shares ($ IN THOUSANDS) Value GREECE -- 2.1% 85,936 Hellenic Exchanges SA $2,537 126,991 Michaniki SA 1,112 49,627 Sprider Stores SA 954 -------- 4,603 -------- HONG KONG -- 5.6% 4,856,000 Dore Holdings Ltd.(2) 1,395 1,245,000 Huabao International Holdings Ltd. 1,288 1,654,000 Peace Mark Holdings Ltd. 2,459 3,115,000 Polytec Asset Holdings Ltd. 965 16,775,000 REXCAPITAL Financial Holdings Ltd.(1)(2) 3,011 2,648,000 Xinyi Glass Holdings Co. Ltd. 3,113 -------- 12,231 -------- INDIA -- 2.4% 162,887 Elecon Engineering Co. Ltd.(1) 1,207 49,844 Tulip IT Services Ltd. 1,176 470,775 Voltas Ltd. 2,872 -------- 5,255 -------- INDONESIA -- 2.3% 15,280,850 PT Bakrie Sumatera Plantations Tbk 3,609 3,169,500 PT Sumalindo Lestari Jaya Tbk(1) 1,048 124,000 PT Timah Tbk 333 -------- 4,990 -------- ITALY -- 0.9% 314,185 Polynt SpA(1) 1,341 57,951 SNAI SpA(1) 505 -------- 1,846 -------- JAPAN -- 11.5% 147,700 Capcom Co. Ltd.(2) 3,979 281,900 Hosiden Corp.(2) 4,757 270,000 Nippon Synthetic Chemical Industry Co., Ltd. (The)(2) 1,576 147,500 Shinko Plantech Co. Ltd.(2) 2,354 690 So-net Entertainment Corp.(2) 2,943 140,000 Takasago Thermal Engineering Co. Ltd.(2) 1,267 108,700 Tamron Co. Ltd.(2) 3,250 214,000 Tokai Carbon Co. Ltd.(2) 2,289 25,872 Toyo Tanso Co. Ltd.(2) 2,488 -------- 24,903 -------- - ------ 21 International Opportunities Shares ($ IN THOUSANDS) Value MALAYSIA -- 0.8% 1,953,000 Alliance Financial Group Bhd $1,751 -------- NETHERLANDS -- 2.8% 31,167 Draka Holding N.V.(2) 1,097 22,313 Imtech N.V.(2) 537 19,402 Smartrac N.V.(1) 1,040 24,417 Smit Internationale N.V. 2,461 35,982 Unit 4 Agresso N.V. 943 -------- 6,078 -------- NORWAY -- 3.7% 555,161 Deep Sea Supply plc 2,508 370,736 Golden Ocean Group Ltd.(2) 2,358 141,424 ODIM ASA(1) 2,127 265,698 StepStone ASA(1) 1,115 -------- 8,108 -------- PEOPLE'S REPUBLIC OF CHINA -- 7.3% 27,306 Agria Corp. ADR(1) 334 1,190,000 Ajisen China Holdings Ltd.(1) 1,858 878,000 China National Building Material Co. Ltd. Cl H 3,822 58,336 China Nepstar Chain Drugstore Ltd. ADR(1)(2) 1,087 1,598,000 China Properties Group Ltd. 1,084 1,868,000 Fibrechem Technologies Ltd.(2) 1,855 739,000 Haitian International Holdings Ltd. 523 982,000 Li Ning Co. Ltd.(2) 3,335 2,448,000 Shenzhen Investment Ltd.(2) 1,870 -------- 15,768 -------- PHILIPPINES -- 0.2% 14,141,800 Filinvest Land Inc.(1) 501 -------- SINGAPORE -- 5.1% 1,055,000 Epure International Ltd.(1) 1,465 814,000 Ezra Holdings Ltd. 1,887 539,000 Midas Holdings Ltd.(2) 540 2,195,000 Straits Asia Resources Ltd.(2) 4,809 1,016,000 Tat Hong Holdings Ltd. 2,244 -------- 10,945 -------- SOUTH AFRICA -- 1.6% 93,545 JSE Ltd. 1,257 272,410 Spar Group Ltd. (The) 2,259 -------- 3,516 -------- Shares ($ IN THOUSANDS) Value SOUTH KOREA -- 4.8% 69,070 Hotel Shilla Co. Ltd. $1,886 75,711 Jinsung T.E.C. Co., Ltd.(1) 926 127,180 LIG Non-Life Insurance Co., Ltd. 3,152 7,888 MegaStudy Co., Ltd. 2,676 49,584 TK Corp. 1,710 -------- 10,350 -------- SPAIN -- 4.7% 172,161 Grifols SA 3,989 396,943 Tubacex SA(2) 4,177 88,884 Viscofan SA 2,074 -------- 10,240 -------- SWEDEN -- 1.1% 143,103 Intrum Justitia AB(2) 2,444 -------- SWITZERLAND -- 3.9% 11,500 Bucher Industries AG 2,845 5,530 Galenica Holding AG 3,012 5,411 Meyer Burger Technology AG(1) 1,670 12,350 SCHMOLZ+BICKENBACH AG 1,030 -------- 8,557 -------- TAIWAN (REPUBLIC OF CHINA) -- 0.9% 433,000 Chicony Electronics Co. Ltd. 799 328,680 Merry Electronics Co. Ltd. 999 -------- 1,798 -------- TURKEY -- 0.9% 229,640 Asya Katilim Bankasi AS(1) 1,894 -------- UNITED KINGDOM -- 11.0% 241,512 Babcock International Group plc 2,929 36,271 Chemring Group plc 1,599 186,805 Hikma Pharmaceuticals plc 1,815 176,162 IG Group Holdings plc 1,483 296,679 MITIE Group plc 1,681 830,653 RAB Capital plc 1,463 157,809 RPS Group plc 980 340,390 Southern Cross Healthcare Ltd. 4,041 95,692 Spice plc 989 65,242 Tradus plc(1) 2,290 65,908 Wellstream Holdings plc(1) 1,421 89,651 WSP Group plc 1,268 310,494 Xchanging Ltd.(1) 1,889 -------- 23,848 -------- TOTAL COMMON STOCKS (Cost $162,227) 209,968 -------- - ------ 22 International Opportunities Shares ($ IN THOUSANDS) Value Preferred Stocks -- 0.6% GERMANY -- 0.6% 17,535 Hugo Boss AG $1,206 (Cost $524) -------- Temporary Cash Investments -- 2.1% Repurchase Agreement, Credit Suisse First Boston, Inc., (collateralized by various U.S. Treasury obligations, 6.25%, 8/15/23, valued at $4,587), in a joint trading account at 3.05%, dated 11/30/07, due 12/3/07 (Delivery value $4,501) (Cost $4,500) 4,500 -------- Temporary Cash Investments - Securities Lending Collateral(3) -- 14.7% Repurchase Agreement, BNP Paribas, (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.65%, dated 11/30/07, due 12/3/07 (Delivery value $10,004) 10,000 Repurchase Agreement, Deutsche Bank Securities, Inc., (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.56%, dated 11/30/07, due 12/3/07 (Delivery value $11,906) 11,901 Repurchase Agreement, Lehman Brothers, Inc., (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.64%, dated 11/30/07, due 12/3/07 (Delivery value $10,004) 10,000 -------- TOTAL TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL (Cost $31,901) 31,901 -------- TOTAL INVESTMENT SECURITIES -- 114.3% (Cost $199,152) 247,575 -------- OTHER ASSETS AND LIABILITIES -- (14.3)% (30,905) -------- TOTAL NET ASSETS -- 100.0% $216,670 ======== Market Sector Diversification (as a % of net assets) Industrials 25.7% Consumer Discretionary 16.3% Financials 11.5% Materials 11.0% Information Technology 10.2% Energy 8.2% Health Care 6.5% Consumer Staples 5.6% Utilities 2.0% Telecommunication Services 0.5% Cash and Equivalents* 2.5% * Includes temporary cash investments, securities lending collateral and other assets and liabilities. Notes to Schedule of Investments ADR = American Depositary Receipt BDR = Brazilian Depositary Receipt (1) Non-income producing. (2) Security, or a portion thereof, was on loan as of November 30, 2007. (3) Investments represent purchases made by the lending agent with cash collateral received through securities lending transactions. As of November 30, 2007, securities with an aggregate value of $194,651 (in thousands), which represented 89.8% of total net assets, were valued in accordance with alternative pricing procedures adopted by the Board of Directors. See Notes to Financial Statements. - ------ 23 SHAREHOLDER FEE EXAMPLES (UNAUDITED) Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from June 1, 2007 to November 30, 2007. 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 fund, or Institutional Class shares of the American Century Diversified Bond Fund, in an American Century account (i.e., not a financial intermediary or retirement plan account), American Century may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all PERSONAL ACCOUNTS (including American Century 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 Brokerage accounts, you are currently not subject to this fee. We will not charge the fee as long as you choose to manage your accounts exclusively online. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund's share class. The hypothetical 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. - ------ 24 Expenses Paid Beginning Ending During Period* Annualized Account Account Value 6/1/07 - Expense Value 6/1/07 11/30/07 11/30/07 Ratio* International Stock ACTUAL Investor Class $1,000 $1,075.50 $7.80 1.50% HYPOTHETICAL Investor Class $1,000 $1,017.55 $7.59 1.50% International Discovery ACTUAL Investor Class $1,000 $1,080.40 $7.04 1.35% Institutional Class $1,000 $1,082.10 $6.00 1.15% Advisor Class $1,000 $1,079.40 $8.34 1.60% HYPOTHETICAL Investor Class $1,000 $1,018.30 $6.83 1.35% Institutional Class $1,000 $1,019.30 $5.82 1.15% Advisor Class $1,000 $1,017.05 $8.09 1.60% International Opportunities ACTUAL Investor Class $1,000 $1,042.20 $9.22 1.80% Institutional Class $1,000 $1,042.80 $8.19 1.60% HYPOTHETICAL Investor Class $1,000 $1,016.04 $9.10 1.80% Institutional Class $1,000 $1,017.05 $8.09 1.60% * 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 183, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. - ------ 25 STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) International International International Stock Discovery Opportunities ASSETS Investment securities, at value (cost of $114,928, $1,500,284 and $167,251, respectively) -- including $7,257, $50,160 and $30,481 of securities on loan, respectively $144,752 $1,916,468 $215,674 Investments made with cash collateral received for securities on loan, at value (cost of $7,501, $49,850 and $31,901, respectively) 7,501 49,850 31,901 ------------- ------------- -------------- Total investment securities, at value (cost of $122,429, $1,550,134 and $199,152, respectively) 152,253 1,966,318 247,575 Cash -- 633 -- Foreign currency holdings, at value (cost of $-, $7,314 and $1,009, respectively) -- 7,294 1,013 Receivable for investments sold 1,528 31,552 2,657 Dividends and interest receivable 229 1,821 673 ------------- ------------- -------------- 154,010 2,007,618 251,918 ------------- ------------- -------------- LIABILITIES Disbursements in excess of demand deposit cash 224 -- 186 Payable for collateral received for securities on loan 7,501 49,850 31,901 Payable for investments purchased 1,295 49,111 2,837 Accrued management fees 178 2,105 324 ------------- ------------- -------------- 9,198 101,066 35,248 ------------- ------------- -------------- NET ASSETS $144,812 $1,906,552 $216,670 ============= ============= ============= See Notes to Financial Statements. - ------ 26 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS EXCEPT AS NOTED) International International International Stock Discovery Opportunities NET ASSETS CONSIST OF: Capital (par value and paid-in surplus) $108,855 $1,059,034 $118,861 Undistributed net investment income 935 6,987 1,023 Undistributed net realized gain on investment and foreign currency transactions 5,206 424,762 48,409 Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies 29,816 415,769 48,377 ------------- --------------- ------------- $144,812 $1,906,552 $216,670 ============= =============== ============= INVESTOR CLASS, $0.01 PAR VALUE ($ AND SHARES IN FULL) Net assets $144,812,053 $1,758,334,824 $212,157,420 Shares outstanding 8,758,992 95,580,864 18,652,511 Net asset value per share $16.53 $18.40 $11.37 INSTITUTIONAL CLASS, $0.01 PAR VALUE ($ AND SHARES IN FULL) Net assets N/A $145,723,196 $4,512,753 Shares outstanding N/A 7,840,680 394,428 Net asset value per share N/A $18.59 $11.44 ADVISOR CLASS, $0.01 PAR VALUE ($ AND SHARES IN FULL) Net assets N/A $2,493,976 N/A Shares outstanding N/A 137,932 N/A Net asset value per share N/A $18.08 N/A See Notes to Financial Statements. - ------ 27 STATEMENT OF OPERATIONS YEAR ENDED NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) International International International Stock Discovery Opportunities INVESTMENT INCOME (LOSS) INCOME: Dividends (net of foreign taxes withheld of $241, $2,016 and $310, respectively) $ 2,818 $ 27,301 $ 3,733 Interest 95 1,221 156 Securities lending 85 460 276 ------------ ------------ ------------ 2,998 28,982 4,165 ------------ ------------ ------------ EXPENSES: Management fees 1,924 23,428 3,742 Distribution and service fees -- Advisor Class -- 1 -- Directors' fees and expenses 2 31 4 Other expenses 1 72 8 ------------ ------------ ------------ 1,927 23,532 3,754 ------------ ------------ ------------ NET INVESTMENT INCOME (LOSS) 1,071 5,450 411 ------------ ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS) NET REALIZED GAIN (LOSS) ON: Investment transactions (net of foreign taxes accrued of $--, $1,397 and $2, respectively) 1,900 353,922 40,588 Foreign currency transactions 4,090 76,634 9,282 ------------ ------------ ------------ 5,990 430,556 49,870 ------------ ------------ ------------ CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON: Investments (net of foreign taxes accrued of $(13), $79 and $(15), respectively) 12,810 20,907 6,728 Translation of assets and liabilities in foreign currencies 4,624 14,773 1,156 ------------ ------------ ------------ 17,434 35,680 7,884 ------------ ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) 23,424 466,236 57,754 ------------ ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $24,495 $471,686 $58,165 ============ ============ ============ See Notes to Financial Statements. - ------ 28 STATEMENT OF CHANGES IN NET ASSETS YEARS ENDED NOVEMBER 30, 2007 AND NOVEMBER 30, 2006 (AMOUNTS IN THOUSANDS) International International Stock Discovery Increase (Decrease) in Net Assets 2007 2006 2007 2006 OPERATIONS Net investment income (loss) $ 1,071 $229 $5,450 $ (1,254) Net realized gain (loss) 5,990 (508) 430,556 372,416 Change in net unrealized appreciation (depreciation) 17,434 11,102 35,680 90,140 -------- ------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 24,495 10,823 471,686 461,302 -------- ------- ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income: Investor Class (320) (155) -- (9,106) Institutional Class -- -- -- (2,071) From net realized gains: Investor Class -- -- (348,488) (200,178) Institutional Class -- -- (25,425) (36,186) Advisor Class -- -- (3) (12) -------- ------- ---------- ---------- Decrease in net assets from distributions (320) (155) (373,916) (247,553) -------- ------- ---------- ---------- CAPITAL SHARE TRANSACTIONS Net increase (decrease) in net assets from capital share transactions 30,456 59,171 255,971 (12,037) -------- ------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS 54,631 69,839 353,741 201,712 NET ASSETS Beginning of period 90,181 20,342 1,552,811 1,351,099 -------- ------- ---------- ---------- End of period $144,812 $90,181 $1,906,552 $1,552,811 ======== ======= ========== ========== Accumulated undistributed net investment income (loss) $935 $87 $6,987 $(54) ======== ======= ========== ========== See Notes to Financial Statements. - ------ 29 YEARS ENDED NOVEMBER 30, 2007 AND NOVEMBER 30, 2006 (AMOUNTS IN THOUSANDS) International Opportunities Increase (Decrease) in Net Assets 2007 2006 OPERATIONS Net investment income (loss) $ 411 $(122) Net realized gain (loss) 49,870 52,034 Change in net unrealized appreciation (depreciation) 7,884 (7,653) --------- --------- Net increase (decrease) in net assets resulting from operations 58,165 44,259 --------- --------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income: Investor Class (46) (213) Institutional Class (3) -- From net realized gains: Investor Class (52,245) (48,721) Institutional Class (352) (8) --------- --------- Decrease in net assets from distributions (52,646) (48,942) --------- --------- CAPITAL SHARE TRANSACTIONS Net increase (decrease) in net assets from capital share transactions 29,320 (11,714) --------- --------- NET INCREASE (DECREASE) IN NET ASSETS 34,839 (16,397) NET ASSETS Beginning of period 181,831 198,228 --------- --------- End of period $216,670 $181,831 ========= ========= Accumulated undistributed net investment income (loss) $1,023 $(174) ========= ========= See Notes to Financial Statements. - ------ 30 NOTES TO FINANCIAL STATEMENTS NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION -- American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act) as an open-end management investment company. International Stock Fund (International Stock), International Discovery Fund (International Discovery) and International Opportunities Fund (International Opportunities) (collectively, the funds) are three funds in a series issued by the corporation. The funds are diversified under the 1940 Act. The funds' investment objective is to seek capital growth. The funds pursue their objective by investing primarily in equity securities of foreign companies. International Stock primarily invests in securities of issuers in developed foreign countries that are large-sized companies. International Discovery primarily invests in securities of issuers in developed or emerging market countries that are small- to medium-sized companies at the time of purchase. International Opportunities primarily invests in securities of issuers in developed or emerging market countries that are small-sized companies at the time of purchase. The following is a summary of the funds' significant accounting policies. MULTIPLE CLASS -- International Stock is authorized to issue the Investor Class. International Discovery is authorized to issue the Investor Class, the Institutional Class and the Advisor Class. International Opportunities is authorized to issue the Investor Class and the Institutional Class. The share classes differ principally in their respective distribution and shareholder servicing expenses and arrangements. All shares of each fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the funds are allocated to each class of shares based on their relative net assets. SECURITY VALUATIONS -- Securities traded primarily on a principal securities exchange are valued at the last reported sales price, or at the mean of the latest bid and asked prices where no last sales price is available. Depending on local convention or regulation, securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official close price. Debt securities not traded on a principal securities exchange are valued through a commercial pricing service or at the mean of the most recent bid and asked prices. Discount notes may be valued through a commercial pricing service or at amortized cost, which approximates fair value. Securities traded on foreign securities exchanges and over-the-counter markets are normally completed before the close of business on days that the New York Stock Exchange (the Exchange) is open and may also take place on days when the Exchange is not open. If an event occurs after the value of a security was established but before the net asset value per share was determined that was likely to materially change the net asset value, that security would be valued as determined in accordance with procedures adopted by the Board of Directors. If the funds determine that the market price of a portfolio security is not readily available, or that the valuation methods mentioned above do not reflect the security's fair value, such security is valued as determined by, or in accordance with procedures adopted by, the Board of Directors or its designee if such determination would materially impact a fund's net asset value. Certain other circumstances may cause the funds to use alternative procedures to value a security such as: a security has been declared in default; trading in a security has been halted during the trading day; or there is a foreign market holiday and no trading will commence. SECURITY TRANSACTIONS -- For financial reporting purposes, security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The funds record the foreign tax expense, if any, on an accrual basis. The realized and unrealized tax provision reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively. INVESTMENT INCOME -- Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. SECURITIES ON LOAN -- The funds may lend portfolio securities through their lending agent to certain approved borrowers in order to earn additional income. The funds continue to recognize any gain or loss in the market price of the securities loaned and record any interest earned or dividends declared. - ------ 31 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) FOREIGN CURRENCY TRANSACTIONS -- All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Realized and unrealized gains and losses from foreign currency translations arise from changes in currency exchange rates. Net realized and unrealized foreign currency exchange gains or losses occurring during the holding period of investment securities are a component of realized gain (loss) on foreign currency transactions and unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies, respectively. Certain countries may impose taxes on the contract amount of purchases and sales of foreign currency contracts in their currency. The funds record the foreign tax expense, if any, as a reduction to the net realized gain (loss) on foreign currency transactions. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- The funds may enter into forward foreign currency exchange contracts to facilitate transactions of securities denominated in a foreign currency or to hedge the funds' exposure to foreign currency exchange rate fluctuations. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the funds and the resulting unrealized appreciation or depreciation are determined daily using prevailing exchange rates. The funds bear the risk of an unfavorable change in the foreign currency exchange rate underlying the forward contract. Additionally, losses may arise if the counterparties do not perform under the contract terms. REPURCHASE AGREEMENTS -- The funds may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. Each repurchase agreement is recorded at cost. Each fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable each 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 each fund under each repurchase agreement. JOINT TRADING ACCOUNT -- Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, each fund, along with other registered investment companies having management agreements with ACIM or American Century Global Investment Management, Inc. (ACGIM), 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. INCOME TAX STATUS -- It is each fund's policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. The funds are no longer subject to examination by tax authorities for years prior to 2004. At this time, management has not identified any uncertain tax positions that would materially impact the financial statements. Accordingly, no provision has been made for federal or state income taxes. Interest and penalties associated with any federal or state income tax obligations, if any, are recorded as interest expense. DISTRIBUTIONS TO SHAREHOLDERS -- Distributions to shareholders are recorded on the ex-dividend date. Distributions from net investment income, if any, are generally declared and paid annually. Distributions from net realized gains, if any, are generally declared and paid twice per year. The funds may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act. REDEMPTION -- International Stock may impose a 2.00% redemption fee on shares held less then 60 days. International Discovery and International Opportunities may impose a 2.00% redemption fee on shares held less than 180 days. These fees may not be applicable to all classes. These redemption fees are recorded as a reduction in the cost of shares redeemed. These redemption fees are retained by the funds and help cover transaction costs that long-term investors may bear when a fund sells securities to meet investor redemptions. - ------ 32 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) INDEMNIFICATIONS -- Under the corporation's organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business, the funds enter into contracts that provide general indemnifications. The funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. The risk of material loss from such claims is considered by management to be remote. USE OF ESTIMATES -- The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. 2. FEES AND TRANSACTIONS WITH RELATED PARTIES On July 27, 2007, the Advisor Class shareholders of International Discovery approved a change to the class's fee structure. The change was approved by the Board of Directors on November 29, 2006 and March 7, 2007. Effective September 4, 2007, the fee structure change resulted in an increase of 0.25% in the unified management fee and a simultaneous decrease of 0.25% in the total distribution and service fee, resulting in no change to the total operating expense ratio of the class. MANAGEMENT FEES -- The corporation has entered into a Management Agreement with ACGIM (the investment advisor), under which ACGIM provides the funds with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The Agreement provides that all expenses of the funds, except brokerage commissions, taxes, interest, fees and expenses of those directors who are not considered "interested persons" as defined in the 1940 Act (including counsel fees) and extraordinary expenses, will be paid by ACGIM. The fee is computed and accrued daily based on the daily net assets of each specific class of shares of each fund and paid monthly in arrears. For funds with a stepped fee schedule, the rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account all of the investment advisor's assets under management in each fund's investment strategy (strategy assets) to calculate the appropriate fee rate for each fund. The strategy assets include each fund's assets and the assets of other clients of the investment advisor that are not in the American Century family of funds, but that have the same investment team and investment strategy. The annual management fee schedule for International Stock ranges from 1.10% to 1.50% for the Investor Class. The annual management fee schedule for International Discovery ranges from 1.20% to 1.75% for the Investor Class and Advisor Class. The annual management fee schedule for International Opportunities ranges from 1.60% to 2.00% for the Investor Class. The Institutional Class is 0.20% less at each point within the range. Prior to September 4, 2007, the Advisor Class was 0.25% less at each point within the range for International Discovery. The effective annual management fee for each class of each fund for the year ended November 30, 2007, was as follows: Investor Institutional Advisor International Stock 1.50% N/A N/A International Discovery 1.35% 1.15% 1.29% International Opportunities 1.80% 1.60% N/A ACGIM has entered into a Subadvisory Agreement with ACIM (the subadvisor) on behalf of the funds. The subadvisor makes investment decisions for the cash portion of the funds in accordance with the funds' investment objectives, policies and restrictions under the supervision of ACGIM and the Board of Directors. ACGIM pays all costs associated with retaining ACIM as the subadvisor of the funds. - ------ 33 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) DISTRIBUTION AND SERVICE FEE -- The Board of Directors has adopted a Master Distribution and Individual Shareholder Services Plan (the plan) for the Advisor Class, pursuant to Rule 12b-1 of the 1940 Act. The plan provides that the Advisor Class will pay American Century Investment Services, Inc. (ACIS) an annual distribution and service fee of 0.25%. Prior to September 4, 2007, the Board of Directors had adopted a Master Distribution and Shareholder Services Plan for the Advisor Class, pursuant to Rule 12b-1 of the 1940 Act, which provided that the Advisor Class would pay ACIS an annual distribution fee of 0.25% and service fee of 0.25%. The fees are computed and accrued daily based on the Advisor Class's daily net assets and paid monthly in arrears. The distribution fee provides compensation for expenses incurred by financial intermediaries in connection with distributing shares of the Advisor Class including, but not limited to, payments to brokers, dealers, and financial institutions that have entered into sales agreements with respect to shares of the funds. The service fee provides compensation for shareholder and administrative services rendered by ACIS, its affiliates or independent third party providers. Fees incurred under the plans during the year ended November 30, 2007, are detailed in the Statement of Operations. RELATED PARTIES -- Certain officers and directors of the corporation are also officers and/or directors, and, as a group, controlling stockholders of American Century Companies, Inc. (ACC), the parent of the corporation's investment advisor, ACGIM, the corporation's subadvisor, ACIM, the distributor of the corporation, ACIS, and the corporation's transfer agent, American Century Services, LLC. Beginning in December 2006, the funds are eligible to invest in a money market fund for temporary purposes, which is managed by J.P. Morgan Investment Management, Inc. (JPMIM). JPMIM is a wholly owned subsidiary of JPMorgan Chase & Co. (JPM). JPM is an equity investor in ACC. The funds have a bank line of credit agreement and securities lending agreement with JPMorgan Chase Bank (JPMCB). JPMCB is a custodian of the funds and a wholly owned subsidiary of JPM. 3. INVESTMENT TRANSACTIONS Investment transactions, excluding short-term investments, for the year ended November 30, 2007, were as follows: International International International Stock Discovery Opportunities Purchases $164,331 $2,779,903 $303,879 Proceeds from sales $131,374 $2,896,069 $326,402 4. CAPITAL SHARE TRANSACTIONS Transactions in shares of the funds were as follows: Year ended Year ended November 30, 2007 November 30, 2006 Shares Amount Shares Amount International Stock INVESTOR CLASS/SHARES AUTHORIZED 100,000 100,000 ======== ======== Sold 4,667 $69,026 6,064 $75,036 Issued in reinvestment of distributions 23 314 14 152 Redeemed (2,577) (38,884)(1) (1,309) (16,017)(2) -------- ----------- -------- ----------- Net increase (decrease) 2,113 $30,456 4,769 $59,171 ======== =========== ======== =========== (1) Net of redemption fees of $30. (2) Net of redemption fees of $37. - ------ 34 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) Year ended Year ended November 30, 2007 November 30, 2006 Shares Amount Shares Amount International Discovery INVESTOR CLASS/SHARES AUTHORIZED 400,000 400,000 ========= ======== Sold 8,720 $151,608 5,524 $89,151 Issued in reinvestment of distributions 22,035 328,727 14,024 198,371 Redeemed (15,512) (258,448)(1) (11,071) (179,701)(2) --------- ------------ -------- ------------ 15,243 221,887 8,477 107,821 --------- ------------ -------- ------------ INSTITUTIONAL CLASS/SHARES AUTHORIZED 75,000 75,000 ========= ======== Sold 1,808 31,398 5,976 97,632 Issued in reinvestment of distributions 1,690 25,425 2,683 38,220 Redeemed (1,485) (25,232)(3) (15,621) (255,645)(4) --------- ------------ -------- ------------ 2,013 31,591 (6,962) (119,793) --------- ------------ -------- ------------ ADVISOR CLASS/SHARES AUTHORIZED 5,000 5,000 ========= ======== Sold 142 2,568 -- -- Issued in reinvestment of distributions -- 3 1 12 Redeemed (4) (78)(5) (5) (77) --------- ------------ -------- ------------ 138 2,493 (4) (65) --------- ------------ -------- ------------ Net increase (decrease) 17,394 $255,971 1,511 $(12,037) ========= ============ ======== ============ International Opportunities INVESTOR CLASS/SHARES AUTHORIZED 100,000 10,000 ========= ======== Sold 108 $1,145 96 $1,070 Issued in reinvestment of distributions 5,745 51,241 4,719 48,005 Redeemed (2,527) (26,039)(6) (5,636) (61,797) --------- ------------ -------- ------------ 3,326 26,347 (821) (12,722) --------- ------------ -------- ------------ INSTITUTIONAL CLASS/SHARES AUTHORIZED 10,000 10,000 ========= ======== Sold 261 2,618 90 1,000 Issued in reinvestment of distributions 40 355 1 8 --------- ------------ -------- ------------ 301 2,973 91 1,008 --------- ------------ -------- ------------ Net increase (decrease) 3,627 $29,320 (730) $(11,714) ========= ============ ======== ============ (1) Net of redemption fees of $102. (2) Net of redemption fees of $90. (3) Net of redemption fees of $23. (4) Net of redemption fees of $164. (5) Net of redemption fees of $2. (6) Net of redemption fees of $1. - ------ 35 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) 5. SECURITIES LENDING As of November 30, 2007, securities in International Stock, International Discovery and International Opportunities valued at $7,257, $50,160 and $30,481, respectively, were on loan through the lending agent, JPMCB, to certain approved borrowers. JPMCB receives and maintains collateral in the form of cash and/or acceptable securities as approved by ACIM or ACGIM. Cash collateral is invested in authorized investments by the lending agent in a pooled account. The value of cash collateral received at period end is disclosed in the Statement of Assets and Liabilities and investments made with the cash by the lending agent are listed in the Schedule of Investments. Any deficiencies or excess of collateral must be delivered or transferred by the member firms no later than the close of business on the next business day. The total value of all collateral received, at this date, was $7,501, $49,850 and $31,901, respectively. The funds' risks in securities lending are that the borrower may not provide additional collateral when required or return the securities when due. If the borrower defaults, receipt of the collateral by the funds may be delayed or limited. 6. BANK LINE OF CREDIT The funds, along with certain other funds managed by ACIM or ACGIM, have a $500 million unsecured bank line of credit agreement with JPMCB. The funds may borrow money for temporary or emergency purposes to fund shareholder redemptions. Borrowings under the agreement bear interest at the Federal Funds rate plus 0.40%. The funds did not borrow from the line during the year ended November 30, 2007. Effective December 12, 2007, the funds, along with certain other funds managed by ACIM or ACGIM, have a $500 million unsecured bank line of credit agreement with Bank of America, N.A. (the Bank of America agreement). The funds may borrow money for temporary or emergency purposes to fund shareholder redemptions. Borrowings under the Bank of America agreement bear interest at the Federal Funds rate plus 0.40%. 7. RISK FACTORS There are certain risks involved in investing in foreign securities. These risks include those resulting from future adverse political, social, and economic developments, fluctuations in currency exchange rates, the possible imposition of exchange controls, and other foreign laws or restrictions. Investing in emerging markets may accentuate these risks. 8. FEDERAL TAX INFORMATION On December 18, 2007, the funds declared and paid the following per-share distributions from net investment income to shareholders of record on December 17, 2007: Investor Institutional Advisor International Stock $0.1233 N/A N/A International Discovery $0.0514 $0.0858 $0.0084 International Opportunities $0.0491 $0.0700 N/A On December 18, 2007, International Stock, International Discovery and International Opportunities declared and paid a per-share distribution from net realized gains to shareholders of record on December 17, 2007 of $0.6521, $3.7176 and $2.4668, respectively, for each class of the funds. - ------ 36 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) The tax character of distributions paid during the years ended November 30, 2007 and November 30, 2006 were as follows: International Stock International Discovery 2007 2006 2007 2006 DISTRIBUTIONS PAID FROM Ordinary income $320 $155 $117,025 $115,168 Long-term capital gains -- -- $256,891 $132,385 International Opportunities 2007 2006 DISTRIBUTIONS PAID FROM Ordinary income $9,422 $19,416 Long-term capital gains $43,224 $29,526 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 November 30, 2007, the components of distributable earnings on a tax-basis and the federal tax cost of investments were as follows: International International International Stock Discovery Opportunities Federal tax cost of investments $122,751 $1,554,564 $199,770 ============ ============= ============= Gross tax appreciation of investments $30,592 $447,852 $53,859 Gross tax depreciation of investments (1,090) (36,098) (6,054) ------------ ------------- ------------- Net tax appreciation (depreciation) of investments $29,502 $411,754 $47,805 ============ ============= ============= Net tax appreciation (depreciation) on derivatives and translation of assets and liabilities in foreign currencies $(7) $(285) $(59) ------------ ------------- ------------- Net tax appreciation (depreciation) $29,495 $411,469 $47,746 ============ ============= ============= Undistributed ordinary income $3,003 $142,707 $18,331 Accumulated long-term gains $3,692 $293,720 $31,732 Capital loss deferrals $(233) -- -- Currency loss deferrals -- $(378) -- The difference between book-basis and tax-basis cost and unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales and on investments in passive foreign investment companies. The capital and currency loss deferrals listed above represent net capital and foreign currency losses incurred in the one-month period ended November 30, 2007. The funds have elected to treat such losses as having been incurred in the following fiscal year for federal income tax purposes. - ------ 37 NOVEMBER 30, 2007 (AMOUNTS IN THOUSANDS) 9. RECENTLY ISSUED ACCOUNTING STANDARDS In June 2006, the Financial Accounting Standards Board (FASB) issued Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an Interpretation of FASB Statement No. 109" (FIN 48). FIN 48 establishes a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. FIN 48 is effective for fiscal years beginning after December 15, 2006, and is to be applied to all open tax years as of the date of effectiveness. Management has concluded that the adoption of FIN 48 will not materially impact the financial statements. The FASB issued Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157), in September 2006, which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands the required financial statement disclosures about fair value measurements. Management is currently evaluating the impact that adopting FAS 157 will have on the financial statement disclosures. 10. OTHER TAX INFORMATION (UNAUDITED) ($ IN FULL) The following information is provided pursuant to provisions of the Internal Revenue Code. The funds hereby designate up to the maximum amount allowable as qualified dividend income for the fiscal year ended November 30, 2007. The funds hereby designate capital gain distributions for the fiscal year ended November 30, 2007, as follows: International Stock International Discovery International Opportunities -- $256,891,012 $43,224,332 For corporate taxpayers, ordinary income distributions paid during the fiscal year ended November 30, 2007, qualify for the corporate dividends received deduction as follows: International Stock International Discovery International Opportunities $6,559 -- -- The funds hereby designate qualified short-term capital gains distributions for purposes of Internal Revenue Code Section 871 for the fiscal year ended November 30, 2007, as follows: International Stock International Discovery International Opportunities -- $117,024,896 $9,372,754 As of November 30, 2007, the funds designate the following as a foreign tax credit, which represents taxes paid on income derived from sources within foreign countries or possessions of the United States: International Stock International Discovery International Opportunities $98,831 $803,250 $168,496 - ------ 38 FINANCIAL HIGHLIGHTS International Stock Investor Class For a Share Outstanding Throughout the Years Ended November 30 (except as noted) 2007 2006 2005(1) PER-SHARE DATA Net Asset Value, Beginning of Period $13.57 $10.84 $10.00 -------- ------- -------- Income From Investment Operations Net Investment Income (Loss) 0.13 0.06 0.06(2) Net Realized and Unrealized Gain (Loss) 2.88 2.74 0.78 -------- ------- -------- Total From Investment Operations 3.01 2.80 0.84 -------- ------- -------- Distributions From Net Investment Income (0.05) (0.08) -- -------- ------- -------- Redemption Fees(2) --(3) 0.01 -- -------- ------- -------- Net Asset Value, End of Period $16.53 $13.57 $10.84 ======== ======= ======== TOTAL RETURN(4) 22.22% 26.07% 8.40% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.50% 1.50% 1.50%(5) Ratio of Net Investment Income (Loss) to Average Net Assets 0.83% 0.40% 0.91%(5) Portfolio Turnover Rate 103% 109% 109% Net Assets, End of Period (in thousands) $144,812 $90,181 $20,342 (1) March 31, 2005 (fund inception) through November 30, 2005. (2) Computed using average shares outstanding throughout the period. (3) Per-share amount was less than $0.005. (4) Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. (5) Annualized. See Notes to Financial Statements. - ------ 39 International Discovery Investor Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $18.01 $15.94 $15.11 $12.75 $9.32 ---------- ---------- ---------- ---------- ---------- Income From Investment Operations Net Investment Income (Loss)(1) 0.05 (0.02) 0.14 (0.01) 0.03 Net Realized and Unrealized Gain (Loss) 4.60 5.00 2.97 2.40 3.42 ---------- ---------- ---------- ---------- ---------- Total From Investment Operations 4.65 4.98 3.11 2.39 3.45 ---------- ---------- ---------- ---------- ---------- Distributions From Net Investment Income -- (0.13) -- (0.03) (0.02) From Net Realized Gains (4.26) (2.78) (2.28) -- -- ---------- ---------- ---------- ---------- ---------- Total Distributions (4.26) (2.91) (2.28) (0.03) (0.02) ---------- ---------- ---------- ---------- ---------- Net Asset Value, End of Period $18.40 $18.01 $15.94 $15.11 $12.75 ========== ========== ========== ========== ========== TOTAL RETURN(2) 32.18% 36.41% 24.30% 18.76% 37.05% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.36% 1.41% 1.47% 1.49% 1.57% Ratio of Net Investment Income (Loss) to Average Net Assets 0.30% (0.11)% 1.02% (0.06)% 0.27% Portfolio Turnover Rate 162% 148% 145% 201% 215% Net Assets, End of Period (in thousands) $1,758,335 $1,446,955 $1,145,623 $1,112,870 $1,028,934 (1) Computed using average shares outstanding throughout the period. (2) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 40 International Discovery Institutional Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $18.16 $16.06 $15.21 $12.84 $9.39 -------- -------- -------- -------- -------- Income From Investment Operations Net Investment Income (Loss)(1) 0.09 0.04 0.17 0.02 0.05 Net Realized and Unrealized Gain (Loss) 4.64 5.00 2.99 2.40 3.43 -------- -------- -------- -------- -------- Total From Investment Operations 4.73 5.04 3.16 2.42 3.48 -------- -------- -------- -------- -------- Distributions From Net Investment Income -- (0.16) -- (0.05) (0.03) -------- -------- -------- -------- -------- From Net Realized Gains (4.30) (2.78) (2.31) -- -- -------- -------- -------- -------- -------- Total Distributions (4.30) (2.94) (2.31) (0.05) (0.03) -------- -------- -------- -------- -------- Net Asset Value, End of Period $18.59 $18.16 $16.06 $15.21 $12.84 ======== ======== ======== ======== ======== TOTAL RETURN(2) 32.45% 36.65% 24.56% 18.94% 37.25% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.16% 1.21% 1.27% 1.29% 1.37% Ratio of Net Investment Income (Loss) to Average Net Assets 0.50% 0.09% 1.22% 0.14% 0.47% Portfolio Turnover Rate 162% 148% 145% 201% 215% Net Assets, End of Period (in thousands) $145,723 $105,849 $205,406 $165,600 $147,531 (1) Computed using average shares outstanding throughout the period. (2) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 41 International Discovery Advisor Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $17.76 $15.75 $14.95 $12.63 $9.23 ------ ------- ------ ------- ------ Income From Investment Operations Net Investment Income (Loss)(1) 0.07 (0.08) 0.10 (0.05) 0.01 Net Realized and Unrealized Gain (Loss) 4.46 4.96 2.95 2.37 3.39 ------ ------- ------ ------- ------ Total From Investment Operations 4.53 4.88 3.05 2.32 3.40 ------ ------- ------ ------- ------ Distributions From Net Investment Income -- (0.09) -- -- -- From Net Realized Gains (4.21) (2.78) (2.25) -- -- ------ ------- ------ ------- ------ Total Distributions (4.21) (2.87) (2.25) -- -- ------ ------- ------ ------- ------ Net Asset Value, End of Period $18.08 $17.76 $15.75 $14.95 $12.63 ====== ======= ====== ======= ====== TOTAL RETURN(2) 31.83% 36.08% 24.01% 18.37% 36.84% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.61% 1.66% 1.72% 1.74% 1.82% Ratio of Net Investment Income (Loss) to Average Net Assets 0.05% (0.36)% 0.77% (0.31)% 0.02% Portfolio Turnover Rate 162% 148% 145% 201% 215% Net Assets, End of Period (in thousands) $2,494 $7 $70 $201 $161 (1) Computed using average shares outstanding throughout the period. (2) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 42 International Opportunities Investor Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $11.79 $12.27 $9.35 $7.62 $4.73 -------- -------- -------- -------- ------- Income From Investment Operations Net Investment Income (Loss)(1) 0.02 (0.01) 0.02 (0.05) (0.01) Net Realized and Unrealized Gain (Loss) 2.94 2.53 3.19 2.03 2.90 -------- -------- -------- -------- ------- Total From Investment Operations 2.96 2.52 3.21 1.98 2.89 -------- -------- -------- -------- ------- Distributions From Net Investment Income --(2) (0.01) -- -- (0.01) From Net Realized Gains (3.38) (2.99) (0.29) (0.27) -- -------- -------- -------- -------- ------- Total Distributions (3.38) (3.00) (0.29) (0.27) (0.01) -------- -------- -------- -------- ------- Redemption Fees(1) --(2) --(2) --(2) 0.02 0.01 -------- -------- -------- -------- ------- Net Asset Value, End of Period $11.37 $11.79 $12.27 $9.35 $7.62 ======== ======== ======== ======== ======= TOTAL RETURN(3) 33.73% 25.37% 35.28% 27.14% 61.54% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.81% 1.85% 1.91% 1.97% 2.00% Ratio of Net Investment Income (Loss) to Average Net Assets 0.19% (0.06)% 0.20% (0.63)% (0.23)% Portfolio Turnover Rate 149% 160% 112% 139% 219% Net Assets, End of Period (in thousands) $212,157 $180,732 $198,197 $176,100 $72,008 (1) Computed using average shares outstanding throughout the period. (2) Per-share amount was less than $0.005. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 43 International Opportunities Institutional Class For a Share Outstanding Throughout the Years Ended November 30 (except as noted) 2007 2006 2005 2004 2003(1) PER-SHARE DATA Net Asset Value, Beginning of Period $11.85 $12.32 $9.37 $7.63 $4.80 ------ ------ ------ ------- -------- Income From Investment Operations Net Investment Income (Loss)(2) 0.06 0.02 0.10 (0.03) 0.01 Net Realized and Unrealized Gain (Loss) 2.94 2.54 3.14 2.04 2.81 ------ ------ ------ ------- -------- Total From Investment Operations 3.00 2.56 3.24 2.01 2.82 ------ ------ ------ ------- -------- Distributions From Net Investment Income (0.03) (0.04) -- -- -- From Net Realized Gains (3.38) (2.99) (0.29) (0.29) -- ------ ------ ------ ------- -------- Total Distributions (3.41) (3.03) (0.29) (0.29) -- ------ ------ ------ ------- -------- Redemption Fees(2) --(3) --(3) --(3) 0.02 0.01 ------ ------ ------ ------- -------- Net Asset Value, End of Period $11.44 $11.85 $12.32 $9.37 $7.63 ====== ====== ====== ======= ======== TOTAL RETURN(4) 33.97% 25.66% 35.53% 27.50% 58.96% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.61% 1.65% 1.71% 1.77% 1.80%(5) Ratio of Net Investment Income (Loss) to Average Net Assets 0.39% 0.14% 0.40% (0.43)% 0.18%(5) Portfolio Turnover Rate 149% 160% 112% 139% 219%(6) Net Assets, End of Period (in thousands) $4,513 $1,099 $31 $10,868 $8,523 (1) January 9, 2003 (commencement of sale) through November 30, 2003. (2) Computed using average shares outstanding throughout the period. (3) Per-share amount was less than $0.005. (4) Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (5) Annualized. (6) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2003. See Notes to Financial Statements. - ------ 44 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Shareholders, American Century World Mutual Funds, Inc.: We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of International Stock Fund, International Discovery Fund and International Opportunities Fund (the "Funds"), three of the mutual funds comprising American Century World Mutual Funds, Inc., as of November 30, 2007, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2007, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective Funds of American Century World Mutual Funds, Inc. as of November 30, 2007, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. Deloitte & Touche LLP Kansas City, Missouri January 14, 2008 - ------ 45 PROXY VOTING RESULTS A special meeting of shareholders was held on July 27, 2007, to vote on the following proposals. The proposals received the required number of votes of the American Century World Mutual Funds, Inc. or the applicable fund, depending on the proposal, and were adopted. A summary of voting results is listed below each proposal. PROPOSAL 1: To elect nine Directors to the Board of Directors of American Century World Mutual Funds, Inc. (the proposal was voted on by all shareholders of funds issued by American Century World Mutual Funds, Inc.). James E. Stowers, Jr. For: 4,492,465,030 Withhold: 84,151,860 Abstain: 0 Broker Non-Vote: 0 Jonathan S. Thomas For: 4,496,101,969 Withhold: 80,514,921 Abstain: 0 Broker Non-Vote: 0 Thomas A. Brown For: 4,497,551,079 Withhold: 79,065,811 Abstain: 0 Broker Non-Vote: 0 Andrea C. Hall For: 4,497,808,657 Withhold: 78,808,233 Abstain: 0 Broker Non-Vote: 0 James A. Olson For: 4,497,582,906 Withhold: 79,033,984 Abstain: 0 Broker Non-Vote: 0 Donald H. Pratt For: 4,496,273,853 Withhold: 80,343,037 Abstain: 0 Broker Non-Vote: 0 Gale E. Sayers For: 4,496,553,346 Withhold: 80,063,544 Abstain: 0 Broker Non-Vote: 0 M. Jeannine Strandjord For: 4,494,879,736 Withhold: 81,737,154 Abstain: 0 Broker Non-Vote: 0 Timothy S. Webster For: 4,497,903,345 Withhold: 78,713,545 Abstain: 0 Broker Non-Vote: 0 - ------ 46 PROPOSAL 2: To approve a change in the fee structure of the Advisor Class of International Discovery. This proposal was voted on by the Advisor Class shareholders of International Discovery. International Discovery For: 141,301 Against: 0 Abstain: 0 Broker Non-Vote: 0 - ------ 47 MANAGEMENT The individuals listed below serve as directors or officers of the funds. Each director serves until his or her successor is duly elected and qualified or until he or she retires. Mandatory retirement age for independent directors is 72. Those listed as interested directors are "interested" primarily by virtue of their engagement as directors and/or officers of, or ownership interest in, American Century Companies, Inc. (ACC) or its wholly owned, direct or indirect, subsidiaries, including the funds' investment advisor, American Century Global Investment Management, Inc. (ACGIM) or American Century Investment Management, Inc. (ACIM); the funds' principal underwriter, American Century Investment Services, Inc. (ACIS); and the funds' transfer agent, American Century Services, LLC (ACS). The other directors (more than three-fourths of the total number) are independent; that is, they have never been employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACGIM, ACIM, ACIS, and ACS. The directors serve in this capacity for seven registered investment companies in the American Century family of funds. All persons named as officers of the funds also serve in similar capacities for the other 14 investment companies in the American Century family of funds advised by ACIM, or ACGIM, a wholly owned subsidiary of ACIM, unless otherwise noted. Only officers with policy-making functions are listed. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. INTERESTED DIRECTORS JAMES E. STOWERS, JR., 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1924 POSITION(S) HELD WITH FUNDS: Director (since 1958) and Vice Chairman (since 2007) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Founder, Co-Chairman, Director and Controlling Shareholder, ACC; Co-Vice Chairman, ACC (January 2005 to February 2007); Chairman, ACC (January 1995 to December 2004); Director, ACIM, ACGIM, ACS, ACIS and other ACC subsidiaries NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None JONATHAN S. THOMAS, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1963 POSITION(S) HELD WITH FUNDS: Director (since 2007) and President (since 2007) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President and Chief Executive Officer, ACC (March 2007 to present); Chief Administrative Officer, ACC (February 2006 to February 2007); Executive Vice President, ACC (November 2005 to February 2007). Also serves as: President, Chief Executive Officer and Director, ACS; Executive Vice President, ACIM and ACGIM; Director, ACIM, ACGIM, ACIS and other ACC subsidiaries; Managing Director, Morgan Stanley (March 2000 to November 2005) NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 105 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None - ------ 48 INDEPENDENT DIRECTORS THOMAS A. BROWN, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1940 POSITION(S) HELD WITH FUNDS: Director (since 1980) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Member, Associated Investments, LLC (real estate investment company); Managing Member, Brown Cascade Properties, LLC (real estate investment company); Retired, Area Vice President, Applied Industrial Technologies NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None ANDREA C. HALL, PH.D., 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1945 POSITION(S) HELD WITH FUNDS: Director (since 1997) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Retired, Advisor to the President, Midwest Research Institute NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None JAMES A. OLSON, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1942 POSITION(S) HELD WITH FUNDS: Director (since 2007) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Member, Plaza Belmont LLC; Chief Financial Officer, Plaza Belmont LLC (September 1999 to September 2006) NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: Director, Saia, Inc. and Entertainment Properties Trust DONALD H. PRATT, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1937 POSITION(S) HELD WITH FUNDS: Director (since 1995) and Chairman of the Board (since 2005) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chairman and Chief Executive Officer, Western Investments, Inc.; Retired Chairman of the Board, Butler Manufacturing Company NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None GALE E. SAYERS, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1943 POSITION(S) HELD WITH FUNDS: Director (since 2000) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President, Chief Executive Officer and Founder, Sayers40, Inc., a technology products and services provider NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None M. JEANNINE STRANDJORD, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1945 POSITION(S) HELD WITH FUNDS: Director (since 1994) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Retired, formerly Senior Vice President, Sprint Corporation NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: Director, DST Systems, Inc.; Director, Euronet Worldwide, Inc.; Director, Charming Shoppes, Inc. - ------ 49 TIMOTHY S. WEBSTER, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1961 POSITION(S) HELD WITH FUNDS: Director (since 2001) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Director, TDB Acquisition Group LLC (September 2006 to present); Founder and Principal, Growth Consulting and Investments LLC (November 2007 to present); President and Chief Executive Officer, American Italian Pasta Company (2001 to December 2005) NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None OFFICERS BARRY FINK, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1955 POSITION(S) HELD WITH FUNDS: Executive Vice President (since 2007) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Operating Officer and Executive Vice President, ACC (September 2007 to present); President, ACS LLC (October 2007 to present); Managing Director, Morgan Stanley (2000 to 2007); Global General Counsel, Morgan Stanley (2000 to 2006). Also serves as: Director, ACC, ACS, ACIS and other ACC subsidiaries MARYANNE ROEPKE, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1956 POSITION(S) HELD WITH FUNDS: Chief Compliance Officer (since 2006) and Senior Vice President (since 2000) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Compliance Officer, ACIM, ACGIM and ACS (August 2006 to present); Assistant Treasurer, ACC (January 1995 to August 2006); and Treasurer and Chief Financial Officer, various American Century funds (July 2000 to August 2006). Also serves as: Senior Vice President, ACS CHARLES A. ETHERINGTON, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1957 POSITION(S) HELD WITH FUNDS: General Counsel (since 2007) and Senior Vice President (since 2006) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Attorney, ACC (February 1994 to present); Vice President, ACC (November 2005 to present); General Counsel, ACC (March 2007 to present). Also serves as: General Counsel, ACIM, ACGIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM, ACGIM and ACS ROBERT LEACH, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1966 POSITION(S) HELD WITH FUNDS: Vice President, Treasurer and Chief Financial Officer (all since 2006) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President, ACS (February 2000 to present) and Controller, various American Century funds (1997 to September 2006) JON ZINDEL, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1967 POSITION(S) HELD WITH FUNDS: Tax Officer (since 1998) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Financial Officer and Chief Accounting Officer, ACC (March 2007 to present); Vice President, ACC (October 2001 to present); Vice President, certain ACC subsidiaries (October 2001 to August 2006); Vice President, Corporate Tax, ACS (April 1998 to August 2006). Also serves as: Chief Financial Officer, Chief Accounting Officer and Senior Vice President, ACIM, ACGIM, ACS and other ACC subsidiaries; and Chief Accounting Officer and Senior Vice President, ACIS The SAI has additional information about the funds' directors and is available without charge, upon request, by calling 1-800-345-2021. - ------ 50 SHARE CLASS INFORMATION One class of shares is authorized for sale by International Stock: Investor Class. Three classes of shares are authorized for sale by International Discovery: Investor Class, Institutional Class and Advisor Class. Two classes of shares are authorized for sale by International Opportunities: Investor Class and Institutional Class. The total expense ratio of Institutional Class shares is lower than that of Investor Class shares. The total expense ratio of Advisor Class shares is higher than that of Investor Class shares. INVESTOR CLASS shares are available for purchase in two ways: 1) directly from American Century without any commissions or other fees; and/or 2) through certain financial intermediaries (such as banks, broker-dealers, insurance companies and investment advisors), which may require payment of a transaction fee to the financial intermediary. The funds' prospectuses contain additional information regarding eligibility for Investor Class shares. INSTITUTIONAL CLASS shares are available to large investors such as endowments, foundations, and retirement plans, and to financial intermediaries serving these investors. This class recognizes the relatively lower cost of serving institutional customers and others who invest at least $5 million ($3 million for endowments and foundations) in an American Century fund or at least $10 million in multiple funds. In recognition of the larger investments and account balances and comparatively lower transaction costs, the unified management fee of Institutional Class shares is 0.20% less than the unified management fee of Investor Class shares. ADVISOR CLASS shares are sold primarily through institutions such as investment advisors, banks, broker-dealers, insurance companies, and financial advisors. The unified management fee for Advisor Class shares is the same as for Investor Class shares. Advisor Class shares are subject to a 0.25% annual Rule 12b-1 distribution and service fee. All classes of shares represent a pro rata interest in the funds and generally have the same rights and preferences. - ------ 51 ADDITIONAL INFORMATION RETIREMENT ACCOUNT INFORMATION As required by law, any distributions you receive from an IRA or certain 403(b), 457 and qualified plans [those not eligible for rollover to an IRA or to another qualified plan] 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. Even if you plan to roll over the amount you withdraw to another tax-deferred account, the withholding rate still applies to the withdrawn amount unless we have received notice not to withhold federal income tax prior to the withdrawal. You may notify us in writing or in certain situations by telephone or through other electronic means. You have the right to revoke your withholding election at any time and any election you make may remain in effect until revoked by filing a new election. Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don't have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld. State taxes will be withheld from your distribution in accordance with the respective state rules. PROXY VOTING GUIDELINES American Century Global Investment Management, Inc., the funds' investment advisor, is responsible for exercising the voting rights associated with the securities purchased and/or held by the funds. A description of the policies and procedures the advisor uses in fulfilling this responsibility is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century's website at americancentury.com and on the Securities and Exchange Commission's website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov. QUARTERLY PORTFOLIO DISCLOSURE The funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The funds' Forms N-Q are available on the SEC's website at sec.gov, and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The funds also make their complete schedule of portfolio holdings for the most recent quarter of their fiscal year available on their website at americancentury.com and, upon request, by calling 1-800-345-2021. - ------ 52 INDEX DEFINITIONS The following indices are used to illustrate investment market, sector, or style performance or to serve as fund performance comparisons. They are not investment products available for purchase. Morgan Stanley Capital International (MSCI) has developed several indices that measure the performance of foreign stock markets. The MSCI EAFE® (EUROPE, AUSTRALASIA, FAR EAST) INDEX is designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI EAFE® GROWTH INDEX is a capitalization-weighted index that monitors the performance of growth stocks from Europe, Australasia, and the Far East. The MSCI EAFE® VALUE INDEX is a capitalization-weighted index that monitors the performance of value stocks from Europe, Australasia, and the Far East. The MSCI EM (EMERGING MARKETS) INDEX represents the gross performance of stocks in global emerging market countries. The MSCI EUROPE INDEX is designed to measure equity market performance in Europe. The MSCI JAPAN INDEX is designed to measure equity market performance in Japan. The MSCI WORLD FREE INDEX represents the performance of stocks in developed countries (including the United States) that are available for purchase by global investors. The S&P/CITIGROUP EMI (EXTENDED MARKET INDEX) GROWTH WORLD EX-US represents the smaller-cap universe of stocks of growth companies in developed country markets outside the United States. - ------ 53 NOTES - ------ 54 NOTES - ------ 55 NOTES - ------ 56 [back cover] CONTACT US AMERICANCENTURY.COM AUTOMATED INFORMATION LINE: 1-800-345-8765 INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021 or 816-531-5575 BUSINESS, NOT-FOR-PROFIT, EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533 BANKS AND TRUST COMPANIES, BROKER-DEALERS, FINANCIAL PROFESSIONALS, INSURANCE COMPANIES: 1-800-345-6488 TELECOMMUNICATIONS DEVICE FOR THE DEAF: 1-800-634-4113 or 816-444-3485 AMERICAN CENTURY WORLD MUTUAL FUNDS, INC. INVESTMENT ADVISOR: American Century Global Investment Management, Inc. New York, New York THIS REPORT AND THE STATEMENTS IT CONTAINS ARE SUBMITTED FOR THE GENERAL INFORMATION OF OUR SHAREHOLDERS. THE REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. American Century Investments P.O. Box 419200 Kansas City, MO 64141-6200 PRSRT STD U.S. POSTAGE PAID AMERICAN CENTURY COMPANIES American Century Investment Services, Inc., Distributor ©2008 American Century Proprietary Holdings, Inc. All rights reserved. The American Century Investments logo, American Century and American Century Investments are service marks of American Century Proprietary Holdings, Inc. 0801 SH-ANN-57974S
[front cover] AMERICAN CENTURY INVESTMENTS Annual Report November 30, 2007 [winter photo] Life Sciences Fund Technology Fund [american century investments logo and text logo] OUR MESSAGE TO YOU [photo of Jonathan Thomas] JONATHAN THOMAS President and CEO American Century Companies, Inc. To help you monitor your investment, my colleagues and I take pride in providing you with the annual report for the American Century® Life Sciences and Technology funds for the 12 months ended November 30, 2007. I am honored to be addressing you in the "Our Message" space long devoted to company founder Jim Stowers, Jr. and his son Jim Stowers III. Jim Stowers III stepped down from the ACC board in July 2007, his final step in a well-planned career transition to pursue new ventures outside the company. This reflected his family's support of our company's direction and the leadership team of American Century Investments. The Stowers family remains an integral part of our heritage, leadership, and financial structure. In fact, Jim Stowers, Jr. continues as co-chair of the American Century Companies, Inc. (ACC) board of directors with Richard Brown, who has been on the board since 1998. American Century Investments, our clients, and our employees have been my top priority since I became company president and CEO in March, 2007. We have also added the executive talents of overall chief investment officer (CIO) Enrique Chang, international equity CIO Mark On, U.S. growth equity CIO Steve Lurito, and chief operating officer Barry Fink. This skilled group, combined with our existing senior management team, has already had a positive impact on the development and management of the products and services we take pride in delivering to you. We believe the ultimate measure of our performance is our clients' success. Therefore, our focus continues to be on building a long-term relationship with you and on delivering superior investment performance across our product line. /s/Jonathan Thomas [photo of James E. Stowers, Jr.] JAMES E. STOWERS, JR. Founder and Co-Chairman of the Board American Century Companies, Inc. [photo of Richard Brown] RICHARD BROWN Co-Chairman of the Board American Century Companies, Inc. TABLE OF CONTENTS Market Perspective. . . . . . . . . . . . . . . . . . . . . . . . . . 2 Market Returns . . . . . . . . . . . . . . . . . . . . . . . . . . 2 LIFE SCIENCES Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . . 5 Top Ten Holdings . . . . . . . . . . . . . . . . . . . . . . . . . 5 Top Five Industries. . . . . . . . . . . . . . . . . . . . . . . . 6 Types of Investments in Portfolio. . . . . . . . . . . . . . . . . 6 Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . 7 TECHNOLOGY Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . . 11 Top Ten Holdings . . . . . . . . . . . . . . . . . . . . . . . . . 11 Top Five Industries. . . . . . . . . . . . . . . . . . . . . . . . 12 Types of Investments in Portfolio. . . . . . . . . . . . . . . . . 12 Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . 13 Shareholder Fee Examples. . . . . . . . . . . . . . . . . . . . . . . 15 FINANCIAL STATEMENTS Statement of Assets and Liabilities . . . . . . . . . . . . . . . . . 17 Statement of Operations . . . . . . . . . . . . . . . . . . . . . . . 18 Statement of Changes in Net Assets. . . . . . . . . . . . . . . . . . 19 Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . 20 Financial Highlights. . . . . . . . . . . . . . . . . . . . . . . . . 27 Report of Independent Registered Public Accounting Firm . . . . . . . 34 OTHER INFORMATION Proxy Voting Results. . . . . . . . . . . . . . . . . . . . . . . . . 35 Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Share Class Information . . . . . . . . . . . . . . . . . . . . . . . 40 Additional Information. . . . . . . . . . . . . . . . . . . . . . . . 41 Index Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . 42 The opinions expressed in the Market Perspective and each of the Portfolio Commentaries reflect those of the portfolio management team as of the date of the report, and do not necessarily represent the opinions of American Century or any other person in the American Century organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century 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 funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century 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 by third party vendors. To the best of American Century's knowledge, such information is accurate at the time of printing. MARKET PERSPECTIVE [photo of Chief Investment Officer] By Enrique Chang, Chief Investment Officer, American Century Investments STOCKS ADVANCED DESPITE INCREASE IN VOLATILITY The broad U.S. stock indexes gained ground for the 12 months ended November 30, 2007, despite facing a confluence of challenges that led to extraordinary market volatility. The stock market generally rallied during the first half of the period, with the exception of a brief drop in late February caused by a drop in the Chinese stock market and growing financial troubles among subprime mortgage lenders. Stocks benefited from corporate earnings growth, which gradually decelerated but continued to surpass expectations, and robust merger activity, which continued at a brisk pace thanks to leveraged buy-outs from private equity firms. After reaching all-time highs in mid-July, however, the major stock indexes declined sharply as subprime lending problems worsened, leading to a credit crisis that threatened to derail the economic expansion. Tighter lending standards crimped funding for leveraged buy-outs, removing an important leg of support for the stock market, and rising energy and commodity prices sparked inflation worries despite slowing economic activity. As investors grew increasingly risk-averse, the Federal Reserve (the Fed) lowered its discount rate in mid-August and its federal funds rate target in both September and October -- the Fed's first rate cuts since June 2003. The Fed's actions helped alleviate some of the credit and economic concerns, allowing the major stock indexes to stage an uneven recovery in September and October. However, stocks finished the period on a down note, declining in November amid reports of further subprime-related losses. Energy was the best-performing sector in the stock market during the 12-month period, benefiting from a 40% increase in the price of oil. Materials and utilities stocks also fared well. The only two sectors of the market to decline during the period were financials and consumer discretionary. ECONOMIC STRENGTH BOOSTED FOREIGN STOCKS Overseas stock markets comfortably outperformed domestic equities during the period, benefiting from strong economic conditions outside the U.S. Weakness in the U.S. dollar also contributed favorably to international stock returns. By far, emerging markets generated the best results, while Pacific Rim countries (excluding Japan, which posted modest gains) were the top performers among developed markets. Market Returns For the 12 months ended November 30, 2007 U.S. STOCKS Russell 1000 Index (Large-Cap) 7.83% Russell Midcap Index 5.92% Russell 2000 Index (Small-Cap) -1.17% FOREIGN STOCKS MSCI EAFE Index 17.30% MSCI EM Index 45.57% - ------ 2 PERFORMANCE Life Sciences Total Returns as of November 30, 2007 Average Annual Returns Since Inception 1 year 5 years Inception Date INVESTOR CLASS 14.94% 11.12% 2.84% 6/30/00 S&P COMPOSITE 1500 HEALTH CARE INDEX(1) 11.93% 8.41% 2.82% -- S&P 500 INDEX(1) 7.72% 11.63% 1.95% -- Institutional Class 15.12% 11.33% 2.36% 7/17/00 Advisor Class 14.59% 10.90% 1.40% 11/14/00 C Class 13.68% 10.11% 2.50% 11/29/01 (1) Data provided by Lipper Inc. -- A Reuters Company. ©2007 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Lipper Fund Performance -- Performance data is total return, and is preliminary and subject to revision. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The fund concentrates its investments in a narrow segment of the total market and is therefore subject to greater risks and market fluctuations than a portfolio representing a broader range of industries. International investing involves special risks, such as political instability and currency fluctuations. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the indices do not. - ------ 3 Life Sciences Growth of $10,000 Over Life of Class $10,000 investment made June 30, 2000
![](https://capedge.com/proxy/N-CSR/0000872825-08-000005/lifescigrowth10k.gif)
One-Year Returns Over Life of Class Periods ended November 30 2000* 2001 2002 2003 2004 2005 2006 2007 Investor 5.60% -5.35% -27.31% 23.16% 7.57% 13.43% -1.88% 14.94% Class S&P Composite 7.11% -6.10% -18.37% 8.06% 2.91% 10.26% 9.09% 11.93% 1500 Health Care Index S&P 500 -9.16% -12.22% -16.51% 15.09% 12.86% 8.44% 14.23% 7.72% Index *From 6/30/00, the Investor's Class's inception date. Not annualized. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The fund concentrates its investments in a narrow segment of the total market and is therefore subject to greater risks and market fluctuations than a portfolio representing a broader range of industries. International investing involves special risks, such as political instability and currency fluctuations. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the indices do not. - ------ 4 PORTFOLIO COMMENTARY Life Sciences Portfolio Managers: Arnold Douville and Christy Turner PERFORMANCE SUMMARY Life Sciences returned 14.94%* for the 12 months ended November 30, 2007. The portfolio's benchmark, the S&P Composite 1500 Health Care Index, returned 11.93%. The broader equity market, represented by the S&P 500 Index, returned 7.72%. The portfolio outperformed the average return for the 180 funds in the Lipper Health/Biotechnology Funds category, which returned 11.73%.** Periods of volatility in the equity markets generally led to better performance from companies with stable earnings-growth prospects. This sentiment helped the health care sector and led to gains in the portfolio and its benchmark. We also allocated a portion of Life Science's assets to holdings of companies outside of the United States. The portfolio benefited from this allocation, as international stocks generated higher returns than the domestic market, boosted by improving global economic conditions and a declining U.S. dollar. STOCK SELECTION DROVE RESULTS Strong stock selection throughout the health care industry accounted for the majority of the portfolio's outperformance relative to the benchmark. Additionally, overweights in health care equipment and life sciences tools and services and an underweight in the struggling pharmaceuticals area contributed positively to the portfolio's performance. In the health care equipment category, our overweight position in Respironics, a manufacturer of respiratory products that treat sleep disorders, boosted performance. The company, which reported record earnings and revenue growth in the third calendar quarter of 2007, was among the portfolio's top-10 contributors for the reporting period. Our position in Waters Corp. was the top contributor in the life sciences tools and services segment and one of the portfolio's top 10 contributing securities. The company, which produces analytical instruments for research labs, experienced strong stock gains due to earnings growth and a favorable spending environment. Another top contributor was Thermo Fisher Scientific, which has prospered since the merger of Thermo Electron and Fisher Scientific International created the company in late 2006. The supplier of laboratory devices reported solid revenues and profits and increased its full-year earnings and revenue projections for 2007. Top Ten Holdings as of November 30, 2007 % of % of net assets net assets as of as of 11/30/07 5/31/07 Merck & Co., Inc 5.8% 4.9% Thermo Fisher Scientific Inc. 5.6% 5.1% Johnson & Johnson 5.1% 2.6% Abbott Laboratories 4.3% 3.5% Manor Care, Inc. 4.1% 3.6% Gilead Sciences, Inc 3.7% 2.6% Baxter International Inc. 3.6% 3.2% Respironics, Inc. 3.0% 2.8% Schering-Plough Corp. 2.9% 1.5% Novartis AG ADR 2.8% 2.5% * All fund returns referenced in this commentary are for Investor Class shares. ** As of November 30, 2007, the five-year average return for the 144 funds in the Lipper category was 11.93%. - ------ 5 Life Sciences UNDERWEIGHTS HELPED IN PHARMACEUTICALS Although pharmaceuticals represented the largest weighting in the portfolio, our hefty underweight compared to the benchmark was a positive influence on relative performance. Our underweighted positions in some drug makers (such as Johnson & Johnson), and avoidance of others (including Pfizer and Eli Lilly), paid off during the reporting period. Many drug companies posted significant losses -- some due to regulatory issues and others due to disappointing financial results -- and our strategy helped the portfolio's relative performance. OUT-OF-BENCHMARK POSITIONS HELPED A small, out-of-benchmark weighting to the materials industry contributed favorably to the portfolio's relative performance. Specifically, in the materials sector, our exposure to the chemicals industry through a position in Sigma-Aldrich Corp. was a positive influence. INDIVIDUAL NAMES DETRACTED All sectors in which the portfolio invested contributed positively to relative performance. In general, detractors included stocks that performed well but were either not represented or were underweighted in the portfolio. For example, Medco Health Solutions, the pharmacy benefit manager, represented the largest individual detractor to the portfolio's relative performance. This outperforming stock was included in the benchmark but not in the portfolio. STARTING POINT FOR NEXT REPORTING PERIOD Regardless of the macro-economic environment, we will continue to emphasize companies exhibiting accelerating earnings in our attempt to build and maintain a portfolio of strong individual companies. Our investment decisions may result in shifts in industry weightings, but any such developments stem from a fundamental, bottom-up assessment of each company's merits. Top Five Industries as of November 30, 2007 % of % of net assets net assets as of as of 11/30/07 5/31/07 Pharmaceuticals 34.8% 29.3% Health Care Equipment & Supplies 24.1% 27.5% Health Care Providers & Services 16.8% 24.3% Life Sciences Tools & Services 9.9% 11.3% Biotechnology 8.3% 4.7% Types of Investments in Portfolio % of % of net assets net assets as of as of 11/30/07 5/31/07 Domestic Common Stocks 82.6% 84.1% Foreign Common Stocks(1) 16.2% 15.1% TOTAL COMMON STOCKS 98.8% 99.2% Temporary Cash Investments 1.4% 0.8% Other Assets & Liabilities (0.2)% --(2) (1) Includes depositary shares, dual listed securities and foreign ordinary shares. (2) Category is less than 0.05% of total net assets. - ------ 6 SCHEDULE OF INVESTMENTS Life Sciences NOVEMBER 30, 2007 Shares Value Common Stocks -- 98.8% BIOTECHNOLOGY -- 8.3% 22,000 Biogen Idec Inc.(1) $ 1,630,640 25,051 Celgene Corp.(1) 1,541,889 14,000 Genentech, Inc.(1) 1,067,500 82,542 Gilead Sciences, Inc.(1) 3,841,505 24,000 PDL BioPharma Inc.(1) 425,040 ------------ 8,506,574 ------------ CHEMICALS -- 2.3% 44,250 Sigma-Aldrich Corp. 2,329,763 ------------ FOOD & STAPLES RETAILING -- 1.6% 40,500 CVS/Caremark Corp. 1,623,645 ------------ HEALTH CARE EQUIPMENT & SUPPLIES -- 24.1% 20,000 Alcon, Inc. 2,782,800 13,000 C.R. Bard, Inc. 1,098,890 62,068 Baxter International Inc. 3,716,011 15,570 Beckman Coulter, Inc. 1,101,266 27,982 Becton, Dickinson & Co. 2,314,951 57,000 DENTSPLY International Inc. 2,438,460 25,000 Inverness Medical Innovations, Inc.(1) 1,467,000 44,000 Medtronic, Inc. 2,237,400 8,600 Mettler-Toledo International, Inc.(1) 1,000,697 61,500 Respironics, Inc.(1) 3,029,490 26,323 Smith & Nephew plc ADR 1,573,326 40,000 St. Jude Medical, Inc.(1) 1,590,000 21,000 TomoTherapy Inc.(1) 390,600 ------------ 24,740,891 ------------ HEALTH CARE PROVIDERS & SERVICES -- 16.8% 23,000 Express Scripts, Inc.(1) 1,558,250 17,359 Humana Inc.(1) 1,337,164 13,000 Laboratory Corp. of America Holdings(1) 944,710 65,000 Manor Care, Inc. 4,200,299 25,491 Owens & Minor Inc. 1,001,032 57,417 Psychiatric Solutions, Inc.(1) 2,097,443 53,000 Skilled Healthcare Group Inc. Cl A(1) 802,950 134,000 Sun Healthcare Group, Inc.(1) 2,223,060 47,000 Sunrise Senior Living, Inc.(1) 1,475,330 18,300 WellPoint Inc.(1) 1,541,043 ------------ 17,181,281 ------------ Shares Value LIFE SCIENCES TOOLS & SERVICES -- 9.9% 15,000 Covance Inc.(1) $ 1,309,950 21,000 Millipore Corp.(1) 1,719,480 100,000 Thermo Fisher Scientific Inc.(1) 5,764,000 17,557 Waters Corp.(1) 1,370,148 ------------ 10,163,578 ------------ MULTI-INDUSTRY -- 1.0% 14,400 iShares Dow Jones U.S. Healthcare Sector Index Fund 1,046,304 ------------ PHARMACEUTICALS -- 34.8% 76,500 Abbott Laboratories 4,399,515 27,196 Allergan, Inc. 1,823,220 71,005 Bristol-Myers Squibb Co. 2,103,878 66,873 Elan Corp. plc ADR(1) 1,540,085 76,500 Johnson & Johnson 5,182,110 100,000 Merck & Co., Inc. 5,935,999 50,000 Novartis AG ADR 2,826,000 25,000 Pharmaceutical HOLDRs(SM) Trust 2,066,250 11,250 Roche Holding AG ORD 2,138,179 94,000 Schering-Plough Corp. 2,942,200 38,000 Shire plc ADR 2,696,100 46,662 Teva Pharmaceutical Industries Ltd. ADR 2,082,525 ------------ 35,736,061 ------------ TOTAL COMMON STOCKS (Cost $82,205,405) 101,328,097 ------------ Temporary Cash Investments -- 1.4% Repurchase Agreement, Credit Suisse First Boston, Inc., (collateralized by various U.S. Treasury obligations, 6.25%, 8/15/23, valued at $1,427,078), in a joint trading account at 3.05%, dated 11/30/07, due 12/3/07 (Delivery value $1,400,356) (Cost $1,400,000) 1,400,000 ------------ TOTAL INVESTMENT SECURITIES -- 100.2% (Cost $83,605,405) 102,728,097 ------------ OTHER ASSETS AND LIABILITIES -- (0.2)% (163,069) ------------ TOTAL NET ASSETS -- 100.0% $102,565,028 ============ - ------ 7 Life Sciences Forward Foreign Currency Exchange Contracts Settlement Unrealized Gain Contracts to Sell Date Value (Loss) 1,192,500 CHF for USD 12/31/07 $1,056,680 $13,556 ============= ================ (Value on Settlement Date $1,070,236) Notes to Schedule of Investments ADR = American Depositary Receipt CHF = Swiss Franc HOLDRs = Holding Company Depositary Receipts ORD = Foreign Ordinary Share USD = United States Dollar (1) Non-income producing. As of November 30, 2007, securities with an aggregate value of $2,138,179, which represented 2.1% of total net assets, were valued in accordance with alternative pricing procedures adopted by the Board of Directors. See Notes to Financial Statements. - ------ 8 PERFORMANCE Technology Total Returns as of November 30, 2007 Average Annual Returns Since Inception 1 year 5 years Inception Date INVESTOR CLASS 21.33% 12.19% -8.62% 6/30/00 S&P COMPOSITE 1500 TECHNOLOGY INDEX(1) 12.50% 10.32% -7.64% -- S&P 500 INDEX(1) 7.72% 11.63% 1.95% -- Institutional Class 21.54% 12.39% -9.73% 7/14/00 Advisor Class 21.04% 11.88% -8.88% 6/30/00 (1) Data provided by Lipper Inc. -- A Reuters Company. ©2007 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Lipper Fund Performance -- Performance data is total return, and is preliminary and subject to revision. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The fund concentrates its investments in a narrow segment of the total market and is therefore subject to greater risks and market fluctuations than a portfolio representing a broader range of industries. The fund's investment process may involve high portfolio turnover and high capital gains distributions. In addition, its investment approach may involve higher volatility and risk. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the indices do not. - ------ 9 Technology Growth of $10,000 Over Life of Class $10,000 investment made June 30, 2000
![](https://capedge.com/proxy/N-CSR/0000872825-08-000005/techgrowth10k.gif)
One-Year Returns Over Life of Class Periods ended November 30 2000* 2001 2002 2003 2004 2005 2006 2007 Technology -36.20% -34.48% -31.10% 35.97% -7.05% 7.75% 7.60% 21.33% S&P Composite -33.66% -29.22% -27.70% 24.02% 1.48% 7.21% 7.65% 12.50% 1500 Technology Index S&P 500 Index -9.16% -12.22% -16.51% 15.09% 12.86% 8.44% 14.23% 7.72% *From 6/30/00, the Investor's Class's inception date. Not annualized. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The fund concentrates its investments in a narrow segment of the total market and is therefore subject to greater risks and market fluctuations than a portfolio representing a broader range of industries. The fund's investment process may involve high portfolio turnover and high capital gains distributions. In addition, its investment approach may involve higher volatility and risk. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the indices do not. - ------ 10 PORTFOLIO COMMENTARY Technology Portfolio Manager: Tom Telford PERFORMANCE SUMMARY Technology returned 21.33%* for the 12 months ended November 30, 2007. The portfolio's benchmark, the S&P Composite 1500 Technology Index, returned 12.50%. The broader equity market, represented by the S&P 500 Index, returned 7.72%. The portfolio outperformed the average return of 13.66%** for the 270 funds in the Lipper Science and Technology Funds category. With mounting concerns surrounding U.S. economic growth prospects, investors returned to the traditional growth sectors during the reporting period. This sentiment helped the technology sector, where firms with accelerating earnings and revenue growth rates and positive share price momentum performed well. In addition, more than 23% of the portfolio's assets were allocated to foreign stocks during the period (down slightly from 28% on May 31, 2007). The portfolio benefited significantly from this allocation as international stocks generated higher returns than the domestic market, boosted by improving global economic conditions and a declining U.S. dollar. STOCK SELECTION DROVE RESULTS Strong stock selection accounted for the bulk of our portfolio's outperformance relative to the benchmark. Additionally, our holdings in the industrials and telecommunication services sectors made positive contributions. RIM WAS TOP CONTRIBUTOR The portfolio's communication equipment segment made the greatest contribution to returns, primarily due to strong performance from Research in Motion (RIM), the Canadian manufacturer of the BlackBerry wireless handheld device. RIM was the portfolio's top absolute and relative contributor and largest holding. The company benefited from multiple new product cycles, expanding market share, and increasing demand for smartphones, which led to accelerating revenue and earnings growth rates throughout the year. RIM continues to enjoy strong subscriber growth, and the company's earnings and revenue outlooks are robust. As such, the company remains among our portfolio's largest holdings. In the software industry, the portfolio's performance benefited from investments in Vasco Data Security and Nintendo, but was hindered by i2 Technologies. Vasco Data Security, the provider of security software, is benefiting from the growth in online banking and from the increasing need for strong user authentication for online access Top Ten Holdings as of November 30, 2007 % of % of net assets net assets as of as of 11/30/07 5/31/07 Research In Motion Ltd. 8.0% 4.6% Google Inc. Cl A 6.4% 3.3% Intel Corp. 5.4% 2.1% Cisco Systems Inc. 4.5% 3.1% Microsoft Corporation 4.4% 2.8% MEMC Electronic Materials Inc. 3.3% 1.3% Corning Inc. 3.2% 3.1% Apple Inc. 3.1% 1.9% Hewlett-Packard Co. 3.0% 2.2% Adobe Systems Inc. 2.8% 2.4% * All fund returns referenced in this commentary are for Investor Class shares. ** As of November 30, 2007, the five-year average return for the 224 funds in the Lipper category was 12.77%. - ------ 11 Technology and e-commerce. Nintendo, a Japanese videogame manufacturer, is experiencing strong growth from its new Wii and next generation Nintendo DS game consoles. Hurt by disappointing software sales and the departure of its CEO, i2 Technologies was the portfolio's biggest software detractor. INDUSTRIALS, TELECOM ENHANCE RESULTS In the industrials sector, our investment in aerospace-and-defense-industry component Precision Castparts, the Oregon-based manufacturer of casts for airline engines, soared on strong demand, surging sales and stellar profit growth. Precision Castparts was among the portfolio's top contributors. Our positive performance in the telecommunication services sector reflected the growing demand for such services in the emerging markets. For example, our position in Millicom International Cellular, the Luxembourg-based provider of prepaid cellular phone service in developing countries, contributed strongly and was among the portfolio's leading contributors. In the internet group, our second largest holding, Google, continued to gain market share in internet search and internet advertising. The stock was up 42.94% for the year. Ebay, an e-commerce marketplace, failed to meet rising investor expectations and was among the portfolio's biggest absolute and relative detractors. In the semiconductor industry, MEMC Electronic Materials, a maker of silicon wafers and polysilicon, benefited from rising demand for semiconductors and rapidly increasing demand for silicon-based solar cells. Our position in Credence Systems, a manufacturer of test and analytical equipment for the global semiconductor industry, hindered performance, as the company experienced poor execution and sales shortfalls at key customer Advanced Micro Devices. STARTING POINT FOR NEXT REPORTING PERIOD We will continue to focus on technology firms with accelerating earnings and revenue growth rates and positive share price momentum, as we believe such stocks will generate superior returns over time. Although returns from technology stocks have been strong recently, it's important to remember sector funds can show strong volatility to the up and down sides. Therefore, it may be best to use such funds in the context of a larger, long-term, growth-oriented strategy. Top Five Industries as of November 30, 2007 % of % of net assets net assets as of as of 11/30/07 5/31/07 Communications Equipment 21.4% 17.1% Software 21.4% 21.2% Semiconductors & Semiconductor Equipment 15.6% 15.4% Computers & Peripherals 12.0% 8.4% Internet Software & Services 8.8% 8.3% Types of Investments in Portfolio % of % of net assets net assets as of as of 11/30/07 5/31/07 Domestic Common Stocks 73.9% 70.8% Foreign Common Stocks(1) 23.2% 27.9% TOTAL COMMON STOCKS 97.1% 98.7% Temporary Cash Investments 3.2% 0.2% Other Assets & Liabilities (0.3)% 1.1% (1) Includes depositary shares, dual listed securities and foreign ordinary shares. - ------ 12 SCHEDULE OF INVESTMENTS Technology NOVEMBER 30, 2007 Shares Value Common Stocks -- 97.1% AEROSPACE & DEFENSE -- 3.1% 9,710 Lockheed Martin Corp. $ 1,074,606 14,157 Precision Castparts Corp. 2,085,892 16,605 Raytheon Company 1,027,019 ------------ 4,187,517 ------------ COMMERCIAL SERVICES & SUPPLIES -- 0.8% 29,500 Nissha Printing Co., Ltd. ORD 1,076,864 ------------ COMMUNICATIONS EQUIPMENT -- 21.4% 62,124 Ciena Corp.(1) 2,732,214 219,744 Cisco Systems Inc.(1) 6,157,227 179,806 Corning Inc. 4,367,488 72,689 Foundry Networks, Inc.(1) 1,281,507 63,685 Juniper Networks, Inc.(1) 1,892,718 50,701 Nokia Oyj ADR 1,994,070 95,718 Research In Motion Ltd.(1) 10,894,623 ------------ 29,319,847 ------------ COMPUTERS & PERIPHERALS -- 12.0% 23,187 Apple Inc.(1) 4,225,134 49,392 EMC Corp.(1) 951,784 78,898 Hewlett-Packard Co. 4,036,422 137,900 High Tech Computer Corp. ORD 2,568,689 28,736 Logitech International SA(1) 977,886 201,000 Toshiba Corp. ORD 1,644,567 74,287 Western Digital Corp.(1) 2,052,550 ------------ 16,457,032 ------------ ELECTRICAL EQUIPMENT -- 2.5% 187,000 BYD Co. Ltd. Cl H ORD 1,431,199 35,804 Emerson Electric Co. 2,041,544 ------------ 3,472,743 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS -- 4.3% 141,718 Brightpoint Inc.(1) 2,353,937 168,000 Everlight Electronics Co. Ltd. ORD 648,613 32,322 Plexus Corp.(1) 961,903 125,000 SMK Corp. ORD 1,044,178 696,000 Wintek Corp. ORD 928,657 ------------ 5,937,288 ------------ INTERNET & CATALOG RETAIL -- 1.3% 14,972 Priceline.com Inc.(1) 1,703,814 ------------ Shares Value INTERNET SOFTWARE & SERVICES -- 8.8% 8,305 Equinix Inc.(1) $ 864,634 12,612 Google Inc. Cl A(1) 8,740,116 155,279 NaviSite, Inc.(1) 1,445,647 37,489 Yahoo! Inc.(1) 1,005,080 ------------ 12,055,477 ------------ IT SERVICES -- 2.7% 19,157 DST Systems, Inc.(1) 1,623,556 18,492 International Business Machines Corp. 1,944,988 ------------ 3,568,544 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 15.6% 79,419 Advanced Analogic Technologies Inc.(1) 855,343 284,699 Intel Corp. 7,424,949 58,590 MEMC Electronic Materials Inc.(1) 4,545,412 63,112 Monolithic Power Systems, Inc.(1) 1,204,177 104,681 NVIDIA Corp.(1) 3,301,639 107,766 Pericom Semiconductor Corp.(1) 1,785,683 117,847 Semtech Corp.(1) 1,798,345 8,384 Varian Semiconductor Equipment Associates, Inc.(1) 348,020 ------------ 21,263,568 ------------ SOFTWARE -- 21.4% 90,194 Adobe Systems Inc.(1) 3,800,774 70,898 Aladdin Knowledge Systems Ltd.(1) 1,856,110 60,724 Citrix Systems, Inc.(1) 2,245,574 162,252 FalconStor Software, Inc.(1) 1,964,872 95,267 Informatica Corp.(1) 1,633,829 53,980 McAfee Inc.(1) 2,102,521 12,890 Micros Systems, Inc.(1) 929,885 178,314 Microsoft Corporation 5,991,349 9,219 MicroStrategy Inc. Cl A(1) 929,736 127,550 NetScout Systems, Inc.(1) 1,549,733 3,600 Nintendo Co., Ltd. ORD 2,212,238 95,654 Oracle Corp.(1) 1,930,298 59,001 Sybase, Inc.(1) 1,512,786 6,663 VMware, Inc. Cl A(1) 608,798 ------------ 29,268,503 ------------ - ------ 13 Shares Value WIRELESS TELECOMMUNICATION SERVICES -- 3.2% 16,377 America Movil, SAB de CV ADR $ 1,009,806 14,581 China Mobile Ltd. ADR 1,336,494 533,535 Vodafone Group plc ORD 1,997,349 ------------ 4,343,649 ------------ TOTAL COMMON STOCKS (Cost $114,070,791) 132,654,846 ------------ Temporary Cash Investments -- 3.2% Repurchase Agreement, Bank of America Securities, LLC, (collateralized by various U.S. Treasury obligations, 3.625%, 1/15/08, valued at $4,488,983), in a joint trading account at 3.00%, dated 11/30/07, due 12/3/07 (Delivery value $4,401,100) (Cost $4,400,000) 4,400,000 ------------ TOTAL INVESTMENT SECURITIES -- 100.3% (Cost $118,470,791) 137,054,846 ------------ OTHER ASSETS AND LIABILITIES -- (0.3)% (355,708) ------------ TOTAL NET ASSETS -- 100.0% $136,699,138 ============ Notes to Schedule of Investments ADR = American Depositary Receipt ORD = Foreign Ordinary Share (1) Non-income producing. As of November 30, 2007, securities with an aggregate value of $13,552,354, which represented 9.9% of total net assets, were valued in accordance with alternative pricing procedures adopted by the Board of Directors. See Notes to Financial Statements. - ------ 14 SHAREHOLDER FEE EXAMPLES (UNAUDITED) Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from June 1, 2007 to November 30, 2007. 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 fund, or Institutional Class shares of the American Century Diversified Bond Fund, in an American Century account (i.e., not a financial intermediary or retirement plan account), American Century may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all PERSONAL ACCOUNTS (including American Century 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 Brokerage accounts, you are currently not subject to this fee. We will not charge the fee as long as you choose to manage your accounts exclusively online. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund's share class. The hypothetical 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. - ------ 15 Expenses Paid Beginning Ending During Period* Annualized Account Account Value 6/1/07 -- Expense Value 6/1/07 11/30/07 11/30/07 Ratio* Life Sciences ACTUAL Investor Class $1,000 $1,030.90 $6.87 1.35% Institutional $1,000 $1,030.50 $5.85 1.15% Class Advisor Class $1,000 $1,029.70 $8.14 1.60% C Class $1,000 $1,025.40 $11.93 2.35% HYPOTHETICAL Investor Class $1,000 $1,018.30 $6.83 1.35% Institutional $1,000 $1,019.30 $5.82 1.15% Class Advisor Class $1,000 $1,017.05 $8.09 1.60% C Class $1,000 $1,013.29 $11.86 2.35% Technology ACTUAL Investor Class $1,000 $1,077.40 $7.81 1.50% Institutional $1,000 $1,078.40 $6.77 1.30% Class Advisor Class $1,000 $1,075.90 $9.11 1.75% HYPOTHETICAL Investor Class $1,000 $1,017.55 $7.59 1.50% Institutional $1,000 $1,018.55 $6.58 1.30% Class Advisor Class $1,000 $1,016.29 $8.85 1.75% *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 183, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. - ------ 16 STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 2007 Life Sciences Technology ASSETS Investment securities, at value (cost of $83,605,405 and $118,470,791, respectively) $102,728,097 $137,054,846 Cash 7,174 176,895 Foreign currency holdings, at value (cost of $-- and $16, respectively) -- 16 Receivable for investments sold -- 1,590,555 Receivable for forward foreign currency exchange contracts 13,556 -- Receivable for capital shares sold -- 20,754 Dividends and interest receivable 58,816 131,332 ------------ ------------ 102,807,643 138,974,398 ------------ ------------ LIABILITIES Payable for investments purchased 130,492 2,109,484 Accrued management fees 112,066 165,695 Distribution fees payable 26 -- Service fees (and distribution fees - Advisor Class) payable 31 81 ------------ ------------ 242,615 2,275,260 ------------ ------------ NET ASSETS $102,565,028 $136,699,138 ============ ============ NET ASSETS CONSIST OF: Capital (par value and paid-in surplus) $92,977,166 $314,134,933 Accumulated net investment loss (32,513) -- Accumulated net realized loss on investment and foreign currency transactions (9,516,784) (196,020,935) Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies 19,137,159 18,585,140 ------------ ------------ $102,565,028 $136,699,138 ============ ============ INVESTOR CLASS, $0.01 PAR VALUE Net assets $100,120,280 $130,853,761 Shares outstanding 16,697,477 5,111,654 Net asset value per share $6.00 $25.60 INSTITUTIONAL CLASS, $0.01 PAR VALUE Net assets $2,308,644 $5,480,584 Shares outstanding 379,159 210,688 Net asset value per share $6.09 $26.01 ADVISOR CLASS, $0.01 PAR VALUE Net assets $92,570 $364,793 Shares outstanding 15,724 14,547 Net asset value per share $5.89 $25.08 C CLASS, $0.01 PAR VALUE Net assets $43,534 N/A Shares outstanding 7,709 N/A Net asset value per share $5.65 N/A See Notes to Financial Statements. - ------ 17 STATEMENT OF OPERATIONS YEAR ENDED NOVEMBER 30, 2007 Life Sciences Technology INVESTMENT INCOME (LOSS) INCOME: Dividends (net of foreign taxes withheld of $18,738 and $45,248, respectively) $ 894,147 $ 645,824 Interest 125,626 98,346 ----------- ----------- 1,019,773 744,170 ----------- ----------- EXPENSES: Management fees 1,435,187 1,836,825 Distribution fees: Advisor Class 194 238 C Class 299 -- Service fees: Advisor Class 194 238 C Class 99 -- Distribution and service fees: Advisor Class 69 199 Directors' fees and expenses 1,934 2,200 Other expenses 985 8,116 ----------- ----------- 1,438,961 1,847,816 ----------- ----------- NET INVESTMENT INCOME (LOSS) (419,188) (1,103,646) ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) NET REALIZED GAIN (LOSS) ON: Investment transactions (net of foreign taxes accrued of $-- and $20,132, respectively) 7,570,298 22,508,552 Foreign currency transactions (27,085) 6,653 ----------- ----------- 7,543,213 22,515,205 ----------- ----------- CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON: Investments (net of foreign taxes accrued of $-- and $23,057, respectively) 7,659,730 1,101,596 Translation of assets and liabilities in foreign currencies 45,146 (3,093) ----------- ----------- 7,704,876 1,098,503 ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) 15,248,089 23,613,708 ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $14,828,901 $22,510,062 =========== =========== See Notes to Financial Statements. - ------ 18 STATEMENT OF CHANGES IN NET ASSETS YEARS ENDED NOVEMBER 30, 2007 AND NOVEMBER 30, 2006 Life Sciences Technology Increase (Decrease) in Net Assets 2007 2006 2007 2006 OPERATIONS Net investment income (loss) $(419,188) $(930,959) $(1,103,646) $(1,597,767) Net realized gain (loss) 7,543,213 4,474,185 22,515,205 16,541,436 Change in net unrealized appreciation (depreciation) 7,704,876 (6,266,439) 1,098,503 (5,347,428) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations 14,828,901 (2,723,213) 22,510,062 9,596,241 ------------ ------------ ------------ ------------ CAPITAL SHARE TRANSACTIONS Net increase (decrease) in net assets from capital share transactions (27,830,419) (41,767,562) (13,354,560) (25,969,525) ------------ ------------ ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS (13,001,518) (44,490,775) 9,155,502 (16,373,284) NET ASSETS Beginning of period 115,566,546 160,057,321 127,543,636 143,916,920 ------------ ------------ ------------ ------------ End of period $102,565,028 $115,566,546 $136,699,138 $127,543,636 ============ ============ ============ ============ Accumulated net investment loss $(32,513) $(98,867) -- $(3,910) ============ ============ ============ ============ See Notes to Financial Statements. - ------ 19 NOTES TO FINANCIAL STATEMENTS NOVEMBER 30, 2007 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION -- American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act) as an open-end management investment company. Life Sciences Fund (Life Sciences) and Technology Fund (Technology) (collectively, the funds) are two funds in a series issued by the corporation. The funds are non-diversified under the 1940 Act. The funds' investment objectives are to seek capital growth. Life Sciences and Technology pursue their objectives by seeking to invest primarily in stocks of growing companies in the life sciences and in the technology and telecommunications-related sectors, respectively. Specifically, Life Sciences invests at least 80% of its assets in companies that engage in the business of providing products and services that help promote health and wellness. In addition, Technology invests at least 80% of its assets in companies primarily engaged in offering, using or developing products, processes or services that provide or will benefit significantly from technological advancements or improvements. The following is a summary of the funds' significant accounting policies. MULTIPLE CLASS -- Life Sciences is authorized to issue the Investor Class, the Institutional Class, the Advisor Class and the C Class. Technology is authorized to issue the Investor Class, the Institutional Class and the Advisor Class. The C Class may be subject to a contingent deferred sales charge. The share classes differ principally in their respective sales charges and distribution and shareholder servicing expenses and arrangements. All shares of each fund represent an equal pro rata interest in the assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the funds are allocated to each class of shares based on their relative net assets. SECURITY VALUATIONS -- Securities traded primarily on a principal securities exchange are valued at the last reported sales price, or at the mean of the latest bid and asked prices where no last sales price is available. Depending on local convention or regulation, securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official close price. Debt securities not traded on a principal securities exchange are valued through a commercial pricing service or at the mean of the most recent bid and asked prices. Discount notes may be valued through a commercial pricing service or at amortized cost, which approximates fair value. Securities traded on foreign securities exchanges and over-the-counter markets are normally completed before the close of business on days that the New York Stock Exchange (the Exchange) is open and may also take place on days when the Exchange is not open. If an event occurs after the value of a security was established but before the net asset value per share was determined that was likely to materially change the net asset value, that security would be valued as determined in accordance with procedures adopted by the Board of Directors. If the funds determine that the market price of a portfolio security is not readily available, or that the valuation methods mentioned above do not reflect the security's fair value, such security is valued as determined by, or in accordance with procedures adopted by, the Board of Directors or its designee if such determination would materially impact a fund's net asset value. Certain other circumstances may cause the funds to use alternative procedures to value a security such as: a security has been declared in default; trading in a security has been halted during the trading day; or there is a foreign market holiday and no trading will commence. SECURITY TRANSACTIONS -- For financial reporting purposes, security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The funds record the foreign tax expense, if any, on an accrual basis. The realized and unrealized tax provision reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively. INVESTMENT INCOME -- Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. - ------ 20 EXCHANGE TRADED FUNDS -- The funds may invest in exchange traded funds (ETFs). ETFs are a type of index fund bought and sold on a securities exchange. An ETF trades like common stock and represents a fixed portfolio of securities designed to track the performance and dividend yield of a particular domestic or foreign market index. A fund may purchase an ETF to temporarily gain exposure to a portion of the U.S. or a foreign market while awaiting purchase of underlying securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities they are designed to track, although the lack of liquidity on an ETF could result in it being more volatile. Additionally, ETFs have management fees, which increase their cost. FOREIGN CURRENCY TRANSACTIONS -- All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. For assets and liabilities, other than investments in securities, net realized and unrealized gains and losses from foreign currency translations arise from changes in currency exchange rates. Net realized and unrealized foreign currency exchange gains or losses occurring during the holding period of investment securities are a component of realized gain (loss) on investment transactions and unrealized appreciation (depreciation) on investments, respectively. Certain countries may impose taxes on the contract amount of purchases and sales of foreign currency contracts in their currency. The funds record the foreign tax expense, if any, as a reduction to the net realized gain (loss) on foreign currency transactions. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- The funds may enter into forward foreign currency exchange contracts to facilitate transactions of securities denominated in a foreign currency or to hedge the funds' exposure to foreign currency exchange rate fluctuations. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the funds and the resulting unrealized appreciation or depreciation are determined daily using prevailing exchange rates. The funds bear the risk of an unfavorable change in the foreign currency exchange rate underlying the forward contract. Additionally, losses may arise if the counterparties do not perform under the contract terms. REPURCHASE AGREEMENTS -- The funds may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. Each repurchase agreement is recorded at cost. Each fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable each 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 each fund under each repurchase agreement. JOINT TRADING ACCOUNT -- Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, each fund, along with other registered investment companies having management agreements with ACIM or American Century Global Investment Management, Inc. (ACGIM), 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. INCOME TAX STATUS -- It is each fund's policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. The funds are no longer subject to examination by tax authorities for years prior to 2004. At this time, management has not identified any uncertain tax positions that would materially impact the financial statements. Accordingly, no provision has been made for federal or state income taxes. Interest and penalties associated with any federal or state income tax obligations, if any, are recorded as interest expense. DISTRIBUTIONS TO SHAREHOLDERS -- Distributions to shareholders are recorded on the ex-dividend date. Distributions from net investment income, if any, are generally declared and paid annually. Distributions from net realized gains, if any, are generally declared and paid twice per year. The funds may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act. - ------ 21 INDEMNIFICATIONS -- Under the corporation's organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business, the funds enter into contracts that provide general indemnifications. The funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. The risk of material loss from such claims is considered by management to be remote. USE OF ESTIMATES -- The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. 2. FEES AND TRANSACTIONS WITH RELATED PARTIES On July 27, 2007, the Advisor Class shareholders of Life Sciences and Technology approved a change to the class's fee structure. The change was approved by the Board of Directors on November 29, 2006 and March 7, 2007. Effective September 4, 2007, the fee structure change resulted in an increase of 0.25% in the unified management fee and a simultaneous decrease of 0.25% in the total distribution and service fee, resulting in no change to the total operating expense ratio of the class. MANAGEMENT FEES -- The corporation has entered into a Management Agreement with ACIM for Technology and ACGIM for Life Sciences (the investment advisor, respectively), under which the investment advisor provides the funds with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The Agreement provides that all expenses of the funds, except brokerage commissions, taxes, interest, fees and expenses of those directors who are not considered "interested persons" as defined in the 1940 Act (including counsel fees) and extraordinary expenses, will be paid by the investment advisor. The fee is computed and accrued daily based on the daily net assets of each specific class of shares of each fund and paid monthly in arrears. For funds with a stepped fee schedule, the rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account all of the investment advisor's assets under management in each fund's investment strategy (strategy assets) to calculate the appropriate fee rate for each fund. The strategy assets include each fund's assets and the assets of other clients of the investment advisor that are not in the American Century family of funds, but that have the same investment team and investment strategy. The annual management fee schedule for Life Sciences ranges from 1.10% to 1.35% for Investor Class, Advisor Class and C Class. The annual management fee schedule for Technology ranges from 1.20% to 1.50% for Investor Class and Advisor Class. The Institutional Class is 0.20% less at each point within the range. Prior to September 4, 2007, the Advisor Class was 0.25% less at each point within the range. The effective annual management fee for each class of the funds for the year ended November 30, 2007, was as follows: Investor Institutional Advisor C Life Sciences 1.35% 1.15% 1.16% 1.35% Technology 1.50% 1.30% 1.36% N/A ACGIM has entered into a Subadvisory Agreement with ACIM (the subadvisor) on behalf of Life Sciences. The subadvisor makes investment decisions for the cash portion of Life Sciences in accordance with Life Sciences' investment objectives, policies and restrictions under the supervision of ACGIM and the Board of Directors. ACGIM pays all costs associated with retaining ACIM as the subadvisor of Life Sciences. - ------ 22 DISTRIBUTION AND SERVICE FEES -- The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the Advisor Class and C Class (collectively, the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the Advisor Class will pay American Century Investment Services, Inc. (ACIS) an annual distribution and service fee of 0.25%. Prior to September 4, 2007, the Board of Directors had adopted a Master Distribution and Shareholder Services Plan for the Advisor Class, pursuant to Rule 12b-1of the 1940 Act, in which provided that the Advisor Class paid ACIS an annual distribution fee of 0.25% and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution fee of 0.75% and service fee of 0.25%. The fees are computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The distribution fee provides compensation for expenses incurred by financial intermediaries in connection with distributing shares of the classes including, but not limited to, payments to brokers, dealers, and financial institutions that have entered into sales agreements with respect to shares of the funds. The service fee provides compensation for shareholder and administrative services rendered by ACIS, its affiliates or independent third party providers for Advisor Class shares and for individual shareholder services rendered by broker/dealers or other independent financial intermediaries for C Class shares. Fees incurred under the plans during the year ended November 30, 2007, are detailed in the Statement of Operations. RELATED PARTIES -- Certain officers and directors of the corporation are also officers and/or directors, and, as a group, controlling stockholders of American Century Companies, Inc. (ACC), the parent of the corporation's investment advisor, ACIM or ACGIM, the distributor of the corporation, ACIS, and the corporation's transfer agent, American Century Services, LLC. Beginning in December 2006, the funds are eligible to invest in a money market fund for temporary purposes, which is managed by J.P. Morgan Investment Management, Inc. (JPMIM). JPMIM is a wholly owned subsidiary of JPMorgan Chase & Co. (JPM). JPM is an equity investor in ACC. The funds have a bank line of credit agreement with JPMorgan Chase Bank (JPMCB). JPMCB is a custodian of the funds and a wholly owned subsidiary of JPM. 3. INVESTMENT TRANSACTIONS Investment transactions, excluding short-term investments, for the year ended November 30, 2007, were as follows: Life Sciences Technology Purchases $75,670,441 $315,948,174 Proceeds from sales $100,631,654 $332,515,445 - ------ 23 4. CAPITAL SHARE TRANSACTIONS Transactions in shares of the funds were as follows: Year ended Year ended November 30, 2007 November 30, 2006 Shares Amount Shares Amount Life Sciences INVESTOR CLASS/SHARES AUTHORIZED 100,000,000 100,000,000 =========== =========== Sold 1,584,191 $ 8,866,913 2,142,299 $ 11,360,065 Redeemed (6,459,895) (35,850,490) (9,872,777) (51,883,699) ----------- ------------- ----------- ------------- (4,875,704) (26,983,577) (7,730,478) (40,523,634) ----------- ------------- ----------- ------------- INSTITUTIONAL CLASS/SHARES AUTHORIZED 5,000,000 5,000,000 =========== =========== Sold 107,059 588,684 131,154 713,811 Redeemed (246,509) (1,377,285) (347,592) (1,871,619) ----------- ------------- ----------- ------------- (139,450) (788,601) (216,438) (1,157,808) ----------- ------------- ----------- ------------- ADVISOR CLASS/SHARES AUTHORIZED 5,000,000 5,000,000 =========== =========== Sold 5,964 32,965 15,949 84,134 Redeemed (17,468) (95,202) (20,660) (106,796) ----------- ------------- ----------- ------------- (11,504) (62,237) (4,711) (22,662) ----------- ------------- ----------- ------------- C CLASS/SHARES AUTHORIZED 5,000,000 5,000,000 =========== =========== Sold 750 3,996 5,990 31,096 Redeemed -- -- (18,910) (94,554) ----------- ------------- ----------- ------------- 750 3,996 (12,920) (63,458) ----------- ------------- ----------- ------------- Net increase (decrease) (5,025,908) $(27,830,419) (7,964,547) $(41,767,562) =========== ============= =========== ============= Technology INVESTOR CLASS/SHARES AUTHORIZED 100,000,000 100,000,000 =========== =========== Sold 1,561,495 $ 38,575,501 1,661,765 $ 34,930,608 Redeemed (2,249,110) (51,673,565) (2,886,044) (59,469,218) ----------- ------------- ----------- ------------- (687,615) (13,098,064) (1,224,279) (24,538,610) ----------- ------------- ----------- ------------- INSTITUTIONAL CLASS/SHARES AUTHORIZED 5,000,000 5,000,000 =========== =========== Sold 80,907 2,000,214 69,396 1,474,148 Redeemed (106,292) (2,480,039) (140,648) (2,927,075) ----------- ------------- ----------- ------------- (25,385) (479,825) (71,252) (1,452,927) ----------- ------------- ----------- ------------- ADVISOR CLASS/SHARES AUTHORIZED 10,000,000 5,000,000 =========== =========== Sold 15,122 393,853 3,675 72,810 Redeemed (7,302) (170,524) (2,582) (50,798) ----------- ------------- ----------- ------------- 7,820 223,329 1,093 22,012 ----------- ------------- ----------- ------------- Net increase (decrease) (705,180) $(13,354,560) (1,294,438) $(25,969,525) =========== ============= =========== ============= 5. BANK LINE OF CREDIT The funds, along with certain other funds managed by ACIM or ACGIM, have a $500,000,000 unsecured bank line of credit agreement with JPMCB. The funds may borrow money for temporary or emergency purposes to fund shareholder redemptions. Borrowings under the agreement bear interest at the Federal Funds rate plus 0.40%. The funds did not borrow from the line during the year ended November 30, 2007. Effective December 12, 2007, the funds, along with certain other funds managed by ACIM or ACGIM, have a $500,000,000 unsecured bank line of credit agreement with Bank of America, N.A (the Bank of America agreement). The funds may borrow money for temporary or emergency purposes to fund shareholder redemptions. Borrowings under the Bank of America agreement bear interest at the Federal Funds rate plus 0.40%. - ------ 24 6. RISK FACTORS The funds concentrate their investments in a narrow segment of the total market. Because of this, the funds may be subject to greater risks and market fluctuations than a portfolio representing a broader range of industries. In addition, its investment approach may involve higher volatility and risk. There are certain risks involved in investing in foreign securities. These risks include those resulting from future adverse political, social, and economic developments, fluctuations in currency exchange rates, the possible imposition of exchange controls, and other foreign laws or restrictions. Technology's investment process may result in high portfolio turnover, high commission costs and high capital gains distributions. Investing in emerging markets may accentuate these risks. 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. There were no distributions paid by the funds during the years ended November 30, 2007 and November 30, 2006. As of November 30, 2007, the components of distributable earnings on a tax-basis and the federal tax cost of investments were as follows: Life Sciences Technology Federal tax cost of investments $83,626,472 $118,867,589 ============ ============== Gross tax appreciation of investments $20,020,968 $21,134,281 Gross tax depreciation of investments (919,343) (2,947,024) ------------ -------------- Net tax appreciation (depreciation) of investments $19,101,625 $18,187,257 ============ ============== Net tax appreciation (depreciation) on derivatives and translation of assets and liabilities in foreign currencies $912 $1,084 ------------ -------------- Net tax appreciation (depreciation) $19,102,537 $18,188,341 ============ ============== Accumulated capital losses $(9,361,643) $(195,624,136) Capital loss deferrals $(134,074) -- Currency loss deferrals $(18,958) -- The difference between book-basis and tax-basis cost and unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales and the realization for tax purposes of unrealized gains on certain forward foreign currency exchange contracts. The accumulated capital losses listed above represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers expire as follows: 2009 2010 Life Sciences -- $(9,361,643) Technology $(142,889,307) $(52,734,829) The capital and currency deferrals represent net capital and foreign currency losses incurred in the one-month period ended November 30, 2007. The funds have elected to treat such losses as having been incurred in the following fiscal year for federal income tax purposes. 8. CORPORATE EVENT On July 27, 2007, the Advisor Class and C Class shareholders of Life Sciences approved a reclassification of Advisor Class and C Class shares into Investor Class shares. On July 27, 2007, the Advisor Class shareholders of Technology approved a reclassification of Advisor Class shares into Investor Class shares. Each change was approved by the Board of Directors on November 29, 2006 and March 7, 2007. The reclassification was effective December 3, 2007. - ------ 25 9. RECENTLY ISSUED ACCOUNTING STANDARDS In June 2006, the Financial Accounting Standards Board (FASB) issued Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an Interpretation of FASB Statement No. 109" (FIN 48). FIN 48 establishes a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. FIN 48 is effective for fiscal years beginning after December 15, 2006, and is to be applied to all open tax years as of the date of effectiveness. Management has concluded that the adoption of FIN 48 will not materially impact the financial statements. The FASB issued Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157), in September 2006, which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands the required financial statement disclosures about fair value measurements. Management is currently evaluating the impact that adopting FAS 157 will have on the financial statement disclosures. - ------ 26 FINANCIAL HIGHLIGHTS Life Sciences Investor Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $5.22 $5.32 $4.69 $4.36 $3.54 -------- -------- -------- -------- -------- Income From Investment Operations Net Investment Income (Loss)(1) (0.02) (0.04) (0.04) (0.04) (0.03) Net Realized and Unrealized Gain (Loss) 0.80 (0.06) 0.67 0.37 0.85 -------- -------- -------- -------- -------- Total From Investment Operations 0.78 (0.10) 0.63 0.33 0.82 -------- -------- -------- -------- -------- Net Asset Value, End of Period $6.00 $5.22 $5.32 $4.69 $4.36 ======== ======== ======== ======== ======== TOTAL RETURN(2) 14.94% (1.88)% 13.43% 7.57% 23.16% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.35% 1.46% 1.50% 1.50% 1.50% Ratio of Net Investment Income (Loss) to Average Net Assets (0.39)% (0.67)% (0.81)% (0.85)% (0.89)% Portfolio Turnover Rate 73% 151% 162% 215% 138% Net Assets, End of Period (in thousands) $100,120 $112,648 $155,835 $155,530 $160,187 (1) Computed using average shares outstanding throughout the period. (2) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 27 Life Sciences Institutional Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $5.29 $5.38 $4.74 $4.40 $3.56 ------- ------- ------- ------- ------- Income From Investment Operations Net Investment Income (Loss)(1) (0.01) (0.02) (0.03) (0.03) (0.03) Net Realized and Unrealized Gain (Loss) 0.81 (0.07) 0.67 0.37 0.87 ------- ------- ------- ------- ------- Total From Investment Operations 0.80 (0.09) 0.64 0.34 0.84 ------- ------- ------- ------- ------- Net Asset Value, End of Period $6.09 $5.29 $5.38 $4.74 $4.40 ======= ======= ======= ======= ======= TOTAL RETURN(2) 15.12% (1.67)% 13.50% 7.73% 23.60% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.15% 1.26% 1.30% 1.30% 1.30% Ratio of Net Investment Income (Loss) to Average Net Assets (0.19)% (0.47)% (0.61)% (0.65)% (0.69)% Portfolio Turnover Rate 73% 151% 162% 215% 138% Net Assets, End of Period (in thousands) $2,309 $2,744 $3,953 $3,510 $4,019 (1) Computed using average shares outstanding throughout the period. (2) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 28 Life Sciences Advisor Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $5.14 $5.25 $4.64 $4.33 $3.51 ------- ------- ------- ------- ------- Income From Investment Operations Net Investment Income (Loss)(1) (0.04) (0.05) (0.05) (0.05) (0.04) Net Realized and Unrealized Gain (Loss) 0.79 (0.06) 0.66 0.36 0.86 ------- ------- ------- ------- ------- Total From Investment Operations 0.75 (0.11) 0.61 0.31 0.82 ------- ------- ------- ------- ------- Net Asset Value, End of Period $5.89 $5.14 $5.25 $4.64 $4.33 ======= ======= ======= ======= ======= TOTAL RETURN(2) 14.59% (2.10)% 13.15% 7.16% 23.36% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.60% 1.71% 1.75% 1.75% 1.75% Ratio of Net Investment Income (Loss) to Average Net Assets (0.64)% (0.92)% (1.06)% (1.10)% (1.14)% Portfolio Turnover Rate 73% 151% 162% 215% 138% Net Assets, End of Period (in thousands) $93 $140 $168 $107 $46 (1) Computed using average shares outstanding throughout the period. (2) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 29 Life Sciences C Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003 PER-SHARE DATA Net Asset Value, Beginning of Period $4.97 $5.11 $4.56 $4.28 $3.49 ------- ------- ------- ------- ------- Income From Investment Operations Net Investment Income (Loss)(1) (0.08) (0.09) (0.09) (0.08) (0.07) Net Realized and Unrealized Gain (Loss) 0.76 (0.05) 0.64 0.36 0.86 ------- ------- ------- ------- ------- Total From Investment Operations 0.68 (0.14) 0.55 0.28 0.79 ------- ------- ------- ------- ------- Net Asset Value, End of Period $5.65 $4.97 $5.11 $4.56 $4.28 ======= ======= ======= ======= ======= TOTAL RETURN(2) 13.68% (2.74)% 12.06% 6.54% 22.64% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 2.35% 2.46% 2.50% 2.50% 2.50% Ratio of Net Investment Income (Loss) to Average Net Assets (1.39)% (1.67)% (1.81)% (1.85)% (1.89)% Portfolio Turnover Rate 73% 151% 162% 215% 138% Net Assets, End of Period (in thousands) $44 $35 $102 $25 $10 (1) Computed using average shares outstanding throughout the period. (2) Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three dicimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------- 30 Technology Investor Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003(1) PER-SHARE DATA Net Asset Value, Beginning of Period $21.10 $19.61 $18.20 $19.58 $14.40 -------- -------- -------- -------- -------- Income From Investment Operations Net Investment Income (Loss)(2) (0.21) (0.24) (0.19) (0.24) (0.19) Net Realized and Unrealized Gain (Loss) 4.71 1.73 1.60 (1.14) 5.37 -------- -------- -------- -------- -------- Total From Investment Operations 4.50 1.49 1.41 (1.38) 5.18 -------- -------- -------- -------- -------- Net Asset Value, End of Period $25.60 $21.10 $19.61 $18.20 $19.58 ======== ======== ======== ======== ======== TOTAL RETURN(3) 21.33% 7.60% 7.75% (7.05)% 35.97% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.51% 1.51% 1.51% 1.50% 1.50% Ratio of Net Investment Income (Loss) to Average Net Assets (0.91)% (1.15)% (1.06)% (1.30)% (1.25)% Portfolio Turnover Rate 260% 385% 388% 279% 218% Net Assets, End of Period (in thousands) $130,854 $122,353 $137,710 $166,986 $202,884 (1) Per-share data has been restated, as applicable, to reflect a 1-for-10 reverse share split that occurred on the close of business on May 16, 2003. (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 31 Technology Institutional Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003(1) PER-SHARE DATA Net Asset Value, Beginning of Period $21.40 $19.84 $18.38 $19.74 $14.50 ------- ------- ------- ------- ------- Income From Investment Operations Net Investment Income (Loss)(2) (0.17) (0.20) (0.15) (0.20) (0.16) Net Realized and Unrealized Gain (Loss) 4.78 1.76 1.61 (1.16) 5.40 ------- ------- ------- ------- ------- Total From Investment Operations 4.61 1.56 1.46 (1.36) 5.24 ------- ------- ------- ------- ------- Net Asset Value, End of Period $26.01 $21.40 $19.84 $18.38 $19.74 ======= ======= ======= ======= ======= TOTAL RETURN(3) 21.54% 7.86% 7.94% (6.89)% 36.14% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.31% 1.31% 1.31% 1.30% 1.30% Ratio of Net Investment Income (Loss) to Average Net Assets (0.71)% (0.95)% (0.86)% (1.10)% (1.05)% Portfolio Turnover Rate 260% 385% 388% 279% 218% Net Assets, End of Period (in thousands) $5,481 $5,051 $6,099 $7,805 $10,191 (1) Per-share data has been restated, as applicable, to reflect a 1-for-10 reverse share split that occurred on the close of business on May 16, 2003. (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------- 32 Technology Advisor Class For a Share Outstanding Throughout the Years Ended November 30 2007 2006 2005 2004 2003(1) PER-SHARE DATA Net Asset Value, Beginning of Period $20.72 $19.30 $17.96 $19.37 $14.30 Income From Investment Operations Net Investment Income (Loss)(2) (0.25) (0.28) (0.24) (0.27) (0.20) Net Realized and Unrealized Gain (Loss) 4.61 1.70 1.58 (1.14) 5.27 ------- ------- ------- ------- ------- Total From Investment Operations 4.36 1.42 1.34 (1.41) 5.07 ------- ------- ------- ------- ------- Net Asset Value, End of Period $25.08 $20.72 $19.30 $17.96 $19.37 ======= ======= ======= ======= ======= TOTAL RETURN(3) 21.04% 7.36% 7.46% (7.28)% 35.45% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.76% 1.76% 1.76% 1.75% 1.75% Ratio of Net Investment Income (Loss) to Average Net Assets (1.16)% (1.40)% (1.31)% (1.55)% (1.50)% Portfolio Turnover Rate 260% 385% 388% 279% 218% Net Assets, End of Period (in thousands) $365 $139 $109 $78 $18 (1) Per-share data has been restated, as applicable, to reflect a 1-for-10 reverse share split that occurred on the close of business on May 16, 2003. (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. See Notes to Financial Statements. - ------ 33 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Shareholders, American Century World Mutual Funds, Inc.: We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Life Sciences Fund and Technology Fund (the "Funds"), two of the mutual funds comprising American Century World Mutual Funds, Inc., as of November 30, 2007, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2007, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective Funds of American Century World Mutual Funds, Inc., as of November 30, 2007, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. Deloitte & Touche LLP Kansas City, Missouri January 14, 2008 - ------ 34 PROXY VOTING RESULTS A special meeting of shareholders was held on July 27, 2007, to vote on the following proposals. The proposals received the required number of votes of the American Century World Mutual Funds, Inc. or the applicable fund, depending on the proposal, and were adopted. A summary of voting results is listed below each proposal. PROPOSAL 1: To elect nine Directors to the Board of Directors of American Century World Mutual Funds, Inc. (the proposal was voted on by all shareholders of funds issued by American Century World Mutual Funds, Inc.). James E. Stowers, Jr. For: 4,492,465,030 Withhold: 84,151,860 Abstain: 0 Broker Non-Vote: 0 Jonathan S. Thomas For: 4,496,101,969 Withhold: 80,514,921 Abstain: 0 Broker Non-Vote: 0 Thomas A. Brown For: 4,497,551,079 Withhold: 79,065,811 Abstain: 0 Broker Non-Vote: 0 Andrea C. Hall For: 4,497,808,657 Withhold: 78,808,233 Abstain: 0 Broker Non-Vote: 0 James A. Olson For: 4,497,582,906 Withhold: 79,033,984 Abstain: 0 Broker Non-Vote: 0 Donald H. Pratt For: 4,496,273,853 Withhold: 80,343,037 Abstain: 0 Broker Non-Vote: 0 Gale E. Sayers For: 4,496,553,346 Withhold: 80,063,544 Abstain: 0 Broker Non-Vote: 0 M. Jeannine Strandjord For: 4,494,879,736 Withhold: 81,737,154 Abstain: 0 Broker Non-Vote: 0 Timothy S. Webster For: 4,497,903,345 Withhold: 78,713,545 Abstain: 0 Broker Non-Vote: 0 - ------ 35 PROPOSAL 2: To approve a change in the fee structure of the Advisor Class. This proposal was voted on by the Advisor Class shareholders of the following funds: Life Sciences Technology For: 48,288 93,748 Against: 2,902 0 Abstain: 0 0 Broker Non-votes 0 2,115 PROPOSAL 3: To approve the reclassification of the Advisor Class shares of the fund, whereby all of the Advisor Class shares will be reclassified as Investor Class shares of that fund. This proposal was voted on by the Advisor Class shareholders of the following funds: Life Sciences Technology For: 48,288 93,748 Against: 2,902 0 Abstain: 0 0 Broker Non-Vote: 0 2,115 PROPOSAL 4: To approve the reclassification of the C Class shares of Life Sciences, whereby all of the C Class shares will be reclassified as Investor Class shares of that fund. This proposal was voted on by the C Class shareholders of Life Sciences. Life Sciences For: 30,722 Against: 0 Abstain: 0 Broker Non-Vote: 9,150 - ------ 36 MANAGEMENT The individuals listed below serve as directors or officers of the funds. Each director serves until his or her successor is duly elected and qualified or until he or she retires. Mandatory retirement age for independent directors is 72. Those listed as interested directors are "interested" primarily by virtue of their engagement as directors and/or officers of, or ownership interest in, American Century Companies, Inc. (ACC) or its wholly owned, direct or indirect, subsidiaries, including the funds' investment advisor, American Century Global Investment Management, Inc. (ACGIM) or American Century Investment Management, Inc. (ACIM); the funds' principal underwriter, American Century Investment Services, Inc. (ACIS); and the funds' transfer agent, American Century Services, LLC (ACS). The other directors (more than three-fourths of the total number) are independent; that is, they have never been employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACGIM, ACIM, ACIS, and ACS. The directors serve in this capacity for seven registered investment companies in the American Century family of funds. All persons named as officers of the funds also serve in similar capacities for the other 14 investment companies in the American Century family of funds advised by ACIM, or ACGIM, a wholly owned subsidiary of ACIM, unless otherwise noted. Only officers with policy-making functions are listed. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. INTERESTED DIRECTORS JAMES E. STOWERS, JR., 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1924 POSITION(S) HELD WITH FUNDS: Director (since 1958) and Vice Chairman (since 2007) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Founder, Co-Chairman, Director and Controlling Shareholder, ACC; Co-Vice Chairman, ACC (January 2005 to February 2007); Chairman, ACC (January 1995 to December 2004); Director, ACIM, ACGIM, ACS, ACIS and other ACC subsidiaries NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None JONATHAN S. THOMAS, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1963 POSITION(S) HELD WITH FUNDS: Director (since 2007) and President (since 2007) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President and Chief Executive Officer, ACC (March 2007 to present); Chief Administrative Officer, ACC (February 2006 to February 2007); Executive Vice President, ACC (November 2005 to February 2007). Also serves as: President, Chief Executive Officer and Director, ACS; Executive Vice President, ACIM and ACGIM; Director, ACIM, ACGIM, ACIS and other ACC subsidiaries; Managing Director, Morgan Stanley (March 2000 to November 2005) NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 105 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None - ------ 37 INDEPENDENT DIRECTORS THOMAS A. BROWN, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1940 POSITION(S) HELD WITH FUNDS: Director (since 1980) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Member, Associated Investments, LLC (real estate investment company); Managing Member, Brown Cascade Properties, LLC (real estate investment company); Retired, Area Vice President, Applied Industrial Technologies NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 Other Directorships Held by Director: None ANDREA C. HALL, PH.D., 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1945 POSITION(S) HELD WITH FUNDS: Director (since 1997) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Retired, Advisor to the President, Midwest Research Institute NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None JAMES A. OLSON, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1942 POSITION(S) HELD WITH FUNDS: Director (since 2007) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Member, Plaza Belmont LLC; Chief Financial Officer, Plaza Belmont LLC (September 1999 to September 2006) NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: Director, Saia, Inc. and Entertainment Properties Trust DONALD H. PRATT, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1937 POSITION(S) HELD WITH FUNDS: Director (since 1995) and Chairman of the Board (since 2005) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chairman and Chief Executive Officer, Western Investments, Inc.; Retired Chairman of the Board, Butler Manufacturing Company NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None GALE E. SAYERS, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1943 POSITION(S) HELD WITH FUNDS: Director (since 2000) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President, Chief Executive Officer and Founder, Sayers40, Inc., a technology products and services provider NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None M. JEANNINE STRANDJORD, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1945 POSITION(S) HELD WITH FUNDS: Director (since 1994) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Retired, formerly Senior Vice President, Sprint Corporation NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: Director, DST Systems, Inc.; Director, Euronet Worldwide, Inc.; Director, Charming Shoppes, Inc. - ------ 38 TIMOTHY S. WEBSTER, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1961 POSITION(S) HELD WITH FUNDS: Director (since 2001) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Director, TDB Acquisition Group LLC (September 2006 to present); Founder and Principal, Growth Consulting and Investments LLC (November 2007 to present); President and Chief Executive Officer, American Italian Pasta Company (2001 to December 2005) NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None OFFICERS BARRY FINK, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1955 POSITION(S) HELD WITH FUNDS: Executive Vice President (since 2007) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Operating Officer and Executive Vice President, ACC (September 2007 to present); President, ACS LLC (October 2007 to present); Managing Director, Morgan Stanley (2000 to 2007); Global General Counsel, Morgan Stanley (2000 to 2006). Also serves as: Director, ACC, ACS, ACIS and other ACC subsidiaries MARYANNE ROEPKE, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1956 POSITION(S) HELD WITH FUNDS: Chief Compliance Officer (since 2006) and Senior Vice President (since 2000) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Compliance Officer, ACIM, ACGIM and ACS (August 2006 to present); Assistant Treasurer, ACC (January 1995 to August 2006); and Treasurer and Chief Financial Officer, various American Century funds (July 2000 to August 2006). Also serves as: Senior Vice President, ACS CHARLES A. ETHERINGTON, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1957 POSITION(S) HELD WITH FUNDS: General Counsel (since 2007) and Senior Vice President (since 2006) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Attorney, ACC (February 1994 to present); Vice President, ACC (November 2005 to present); General Counsel, ACC (March 2007 to present). Also serves as: General Counsel, ACIM, ACGIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM, ACGIM and ACS ROBERT LEACH, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1966 POSITION(S) HELD WITH FUNDS: Vice President, Treasurer and Chief Financial Officer (all since 2006) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President, ACS (February 2000 to present) and Controller, various American Century funds (1997 to September 2006) JON ZINDEL, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1967 POSITION(S) HELD WITH FUNDS: Tax Officer (since 1998) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Financial Officer and Chief Accounting Officer, ACC (March 2007 to present); Vice President, ACC (October 2001 to present); Vice President, certain ACC subsidiaries (October 2001 to August 2006); Vice President, Corporate Tax, ACS (April 1998 to August 2006). Also serves as: Chief Financial Officer, Chief Accounting Officer and Senior Vice President, ACIM, ACGIM, ACS and other ACC subsidiaries; and Chief Accounting Officer and Senior Vice President, ACIS The SAI has additional information about the funds' directors and is available without charge, upon request, by calling 1-800-345-2021. - ------ 39 SHARE CLASS INFORMATION Four classes of shares are authorized for sale by Life Sciences: Investor Class, Institutional Class, Advisor Class and C Class. Three classes of shares are authorized for sale by Technology: Investor Class, Institutional Class and Advisor Class. The total expense ratio of Institutional Class shares is lower than that of Investor Class shares. The total expense ratios of Advisor Class and C Class shares are higher than that of Investor Class shares. The Advisor Class and C Class are no longer available effective December 3, 2007. INVESTOR CLASS shares are available for purchase in two ways: 1) directly from American Century without any commissions or other fees; and/or 2) through certain financial intermediaries (such as banks, broker-dealers, insurance companies and investment advisors), which may require payment of a transaction fee to the financial intermediary. The funds' prospectuses additional information regarding eligibility for Investor Class shares. INSTITUTIONAL CLASS shares are available to large investors such as endowments, foundations, and retirement plans, and to financial intermediaries serving these investors. This class recognizes the relatively lower cost of serving institutional customers and others who invest at least $5 million ($3 million for endowments and foundations) in an American Century fund or at least $10 million in multiple funds. In recognition of the larger investments and account balances and comparatively lower transaction costs, the unified management fee of Institutional Class shares is 0.20% less than the unified management fee of Investor Class shares. ADVISOR CLASS shares are sold primarily through institutions such as investment advisors, banks, broker-dealers, insurance companies, and financial advisors. The unified management fee for Advisor Class shares is the same as for Investor Class shares. Advisor Class shares are subject to a 0.25% annual Rule 12b-1 distribution and service fee. C CLASS shares are sold primarily through employer-sponsored retirement plans and through institutions such as investment advisors, banks, broker-dealers, and insurance companies. C Class shares redeemed within 12 months of purchase are subject to a contingent deferred sales charge (CDSC) of 1.00%. There is no CDSC on shares acquired through reinvestment of dividends or capital gains. The unified management fee for C Class shares is the same as for Investor Class shares. C Class shares also are subject to a Rule 12b-1 distribution and service fee of 1.00%. All classes of shares represent a pro rata interest in the funds and generally have the same rights and preferences. - ------ 40 ADDITIONAL INFORMATION RETIREMENT ACCOUNT INFORMATION As required by law, any distributions you receive from an IRA or certain 403(b), 457 and qualified plans [those not eligible for rollover to an IRA or to another qualified plan] 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. Even if you plan to roll over the amount you withdraw to another tax-deferred account, the withholding rate still applies to the withdrawn amount unless we have received notice not to withhold federal income tax prior to the withdrawal. You may notify us in writing or in certain situations by telephone or through other electronic means. You have the right to revoke your withholding election at any time and any election you make may remain in effect until revoked by filing a new election. Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don't have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld. State taxes will be withheld from your distribution in accordance with the respective state rules. PROXY VOTING GUIDELINES American Century Investment Management, Inc. and American Century Global Investment Management, Inc., the funds' investment advisors, are responsible for exercising the voting rights associated with the securities purchased and/or held by the funds. A description of the policies and procedures the advisor uses in fulfilling this responsibility is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century's website at americancentury.com and on the Securities and Exchange Commission's website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov. QUARTERLY PORTFOLIO DISCLOSURE The funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The funds' Forms N-Q are available on the SEC's website at sec.gov, and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The funds also make their complete schedule of portfolio holdings for the most recent quarter of their fiscal year available on their website at americancentury.com and, upon request, by calling 1-800-345-2021. - ------ 41 INDEX DEFINITIONS The following indices are used to illustrate investment market, sector, or style performance or to serve as fund performance comparisons. They are not investment products available for purchase. Morgan Stanley Capital International (MSCI) has developed several indices that measure the performance of foreign stock markets. The MSCI EAFE® (Europe, Australasia, Far East) INDEX is designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI EM (Emerging Markets) INDEX represents the performance of stocks in global emerging market countries. The RUSSELL 1000® INDEX is a market-capitalization weighted, large-cap index created by Frank Russell Company to measure the performance of the 1,000 largest companies in the Russell 3000 Index (the 3,000 largest publicly traded U.S. companies, based on total market capitalization). The RUSSELL 2000® INDEX is a market-capitalization weighted index created by Frank Russell Company to measure the performance of the 2,000 smallest of the 3,000 largest publicly traded U.S. companies, based on total market capitalization. The RUSSELL MIDCAP® INDEX measures the performance of the 800 smallest of the 1,000 largest publicly traded U.S. companies, based on total market capitalization. The S&P 500 INDEX is a market value-weighted index of the stocks of 500 publicly traded U.S. companies chosen for market size, liquidity, and industry group representation that are considered to be leading firms in dominant industries. Each stock's weight in the index is proportionate to its market value. Created by Standard & Poor's, it is considered to be a broad measure of U.S. stock market performance. The S&P COMPOSITE 1500 INDEX combines the S&P 500, MidCap 400 and SmallCap 600 indices. The S&P COMPOSITE 1500 HEALTH CARE INDEX represents those S&P Composite 1500 companies in two main industry groups: Health care equipment and supplies companies or companies that provide health care related services, and companies that provide research, development, production and marketing of pharmaceuticals and biotechnology products. The S&P COMPOSITE 1500 TECHNOLOGY INDEX represents those S&P Composite 1500 companies in two main industry groups: Technology software and services companies, and technology hardware and equipment companies. - ------ 42 NOTES - ------ 43 NOTES - ------ 44 [INSIDE BACK COVER BLANK] CONTACT US AMERICANCENTURY.COM AUTOMATED INFORMATION LINE: 1-800-345-8765 INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021 or 816-531-5575 BUSINESS, NOT-FOR-PROFIT, EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533 BANKS AND TRUST COMPANIES, BROKER-DEALERS, FINANCIAL PROFESSIONALS, INSURANCE COMPANIES: 1-800-345-6488 TELECOMMUNICATIONS DEVICE FOR THE DEAF: 1-800-634-4113 or 816-444-3485 AMERICAN CENTURY WORLD MUTUAL FUNDS, INC. INVESTMENT ADVISOR: American Century Investment Management, Inc. Kansas City, Missouri American Century Global Investment Management, Inc. New York, New York THIS REPORT AND THE STATEMENTS IT CONTAINS ARE SUBMITTED FOR THE GENERAL INFORMATION OF OUR SHAREHOLDERS. THE REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. American Century Investments PRSRT STD P.O. Box 419200 U.S. POSTAGE PAID Kansas City, MO 64141-6200 AMERICAN CENTURY COMPANIES The American Century Investments logo, American Century and American Century Investments are service marks of American Century Proprietary Holdings, Inc. American Century Investment Services, Inc., Distributor ©2008 American Century Proprietary Holdings, Inc. All rights reserved. 0801 SH-ANN-57976S
[front cover] AMERICAN CENTURY INVESTMENTS Annual Report November 30, 2007 [photo of winter] NT International Growth Fund NT Emerging Markets Fund [american century investments logo and text logo] OUR MESSAGE TO YOU To help you monitor your investment, my colleagues and I take pride in providing you with the annual report for the American Century® NT International Growth and NT Emerging Markets funds for the 12 months ended November 30, 2007. I am honored to be addressing you in the "Our Message" space long devoted to company founder Jim Stowers, Jr. and his son Jim Stowers III. Jim Stowers III stepped down from the American Century Companies, Inc. (ACC) board of directors in July 2007, his final step in a well-planned career transition to pursue new ventures outside the company. This reflected his family's support of our company's direction and its leadership team. The Stowers family remains an integral part of our heritage, leadership, and financial structure. In fact, Jim Stowers, Jr. continues as co-chair of the ACC board with Richard Brown, who has been on the board since 1998. American Century Investments, our clients, and our employees have been my top priority since I became company president and CEO in March, 2007. We have also added the executive talents of overall chief investment officer (CIO) Enrique Chang, international equity CIO Mark On, U.S. growth equity CIO Steve Lurito, and chief operating officer Barry Fink. This skilled group, combined with our existing senior management team, has already had a positive impact on the development and management of the products and services we take pride in delivering to you. We believe the ultimate measure of our performance is our clients' success. Therefore, our focus continues to be on building a long-term relationship with you and on delivering superior investment performance across our product line. /s/Jonathan Thomas Jonathan Thomas [photo of Jonathan Thomas] JONATHAN THOMAS President and CEO American Century Companies, Inc. [photo of James E. Stowers, Jr.] JAMES E. STOWERS, JR. Founder and Co-Chairman of the Board American Century Companies, Inc. [photo of Richard Brown] RICHARD BROWN Co-Chairman of the Board American Century Companies, Inc. TABLE OF CONTENTS Market Perspective. . . . . . . . . . . . . . . . . . . . . . . . . . 2 International Equity Total Returns. . . . . . . . . . . . . . . . . . 2 NT INTERNATIONAL GROWTH Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . . 4 Top Ten Holdings. . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Investments by Country. . . . . . . . . . . . . . . . . . . . . . . . 5 Types of Investments in Portfolio . . . . . . . . . . . . . . . . . . 5 Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . 6 NT EMERGING MARKETS Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . . 11 Top Ten Holdings. . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Investments by Country. . . . . . . . . . . . . . . . . . . . . . . . 12 Types of Investments in Portfolio . . . . . . . . . . . . . . . . . . 12 Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . 13 Shareholder Fee Examples. . . . . . . . . . . . . . . . . . . . . . . 16 FINANCIAL STATEMENTS Statement of Assets and Liabilities . . . . . . . . . . . . . . . . . 18 Statement of Operations . . . . . . . . . . . . . . . . . . . . . . . 19 Statement of Changes in Net Assets. . . . . . . . . . . . . . . . . . 20 Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . 21 Financial Highlights. . . . . . . . . . . . . . . . . . . . . . . . . 26 Report of Independent Registered Public Accounting Firm . . . . . . . 28 OTHER INFORMATION Proxy Voting Results. . . . . . . . . . . . . . . . . . . . . . . . . 29 Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Additional Information. . . . . . . . . . . . . . . . . . . . . . . . 33 Index Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . 34 The opinions expressed in the Market Perspective and each of the Portfolio Commentaries reflect those of the portfolio management team as of the date of the report, and do not necessarily represent the opinions of American Century or any other person in the American Century organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century 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 funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century 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 by third party vendors. To the best of American Century's knowledge, such information is accurate at the time of printing. MARKET PERSPECTIVE [photo of Chief Investment Officer] By Mark On, Chief Investment Officer, International Equity INTERNATIONAL STOCKS SHOWED ROBUST GAINS A strong global economy combined with relatively tame inflation and healthy labor markets helped promote stellar stock gains for the 12 months ended November 30, 2007. Among the developed markets, Europe fared well, with the strongest returns coming from the euro-zone nations. In contrast, performance was flat in Japan, as weak consumer spending, a challenging political climate, and slowing demand from the United States pressured Japan's stocks. Emerging markets remained the world's standout performers, due to optimistic growth forecasts for developing markets and higher commodity prices. U.S. CREDIT WOES RATTLED MARKETS Mounting problems in the U.S. subprime mortgage market led to concerns regarding global economic growth, generating periodic market volatility and contributing to a growing desire globally for less-risky assets. In an effort to soothe frayed nerves, the U.S. Federal Reserve (the Fed), the European Central Bank, and the Bank of England injected liquidity into their banking systems. A mid-September rate cut by the Fed served to strengthen the euro and British pound, relative to the sagging U.S. dollar. Late in the period, the dollar hit new record lows against those currencies. RATES ROSE IN EUROPE AND BRITAIN Healthy economic growth prompted the European Central Bank and the Bank of England to raise interest rates three times during the period. Although inflationary pressures remained at the fore, both banks held off making additional rate increases given the fallout from the credit-market turmoil. Optimism surrounding improving economic growth prompted the Bank of Japan to raise rates in February. Nevertheless, expectations for additional rate hikes went unfulfilled, as sluggish domestic consumption kept the central bank on hold. OPPORTUNITIES ABOUND Although the international market continues to be somewhat uncertain, we believe the international stock market presents significant opportunities for investors. Combining the higher growth rate of the international markets with our international team's focus on companies with growth acceleration, we believe there is a significant opportunity to deliver attractive performance in the coming year. International Equity Total Returns For the 12 months ended November 30, 2007 (in U.S. dollars) MSCI EM Index 45.15% MSCI EAFE Growth Index 22.32% MSCI Europe Index 19.61% MSCI EAFE Index 17.30% MSCI World Free Index 12.71% MSCI EAFE Value Index 12.30% MSCI Japan Index 2.19% - ------ 2 PERFORMANCE NT International Growth Total Returns as of November 30, 2007 Since Inception 1 year Inception Date INSTITUTIONAL CLASS 23.40% 16.98% 5/12/06 MSCI EAFE INDEX 17.30% 14.32% -- MSCI EAFE GROWTH INDEX 22.32% 15.62% -- Growth of $10,000 Over Life of Class $10,000 investment made May 12, 2006
![](https://capedge.com/proxy/N-CSR/0000872825-08-000005/growthntintlgwth0801.gif)
One-Year Returns Over Life of Class Periods ended November 30 2006* 2007 Institutional Class 3.40% 23.40% MSCI EAFE Index 4.97% 17.30% MSCI EAFE Growth Index 2.43% 22.32% *From 5/12/06, the Institutional Class's inception date. Not annualized. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the indices do not. - ------ 3 PORTFOLIO COMMENTARY NT International Growth Portfolio Managers: Alex Tedder and Keith Creveling PERFORMANCE SUMMARY NT International Growth gained 23.40% during the 12 months ended November 30, 2007. The portfolio's benchmark, the MSCI EAFE Index, advanced 17.30%. Compared to its peers, NT International Growth outperformed the average return of 20.46%* for the 63 funds in Lipper Inc.'s International Large Cap Growth Funds category. Strong global economic growth combined with a weak U.S. dollar helped generate strong 12-month performance among international stocks. On an absolute basis, all sectors the portfolio invested in posted positive returns, and all but one sector (consumer discretionary) showed double-digit gains. Favorable stock selection in six of 10 sectors accounted for the portfolio's outperformance relative to the benchmark. From a country perspective, Japan, the United Kingdom, and India, which was not represented in the benchmark, made the greatest overall contributions to the portfolio's relative performance. Stock selection in Japan and the United Kingdom was effective, as was an underweight in Japan. Despite its relatively small weighting, India had a strong impact on the portfolio's relative return. The worst country contributors to relative performance included the Netherlands, North America (U.S.-listed ADRs and Canadian securities), and South Korea. Our investments and an underweight hurt performance in the Netherlands, while our overweight in North America accounted for the lagging results. Our South Korean holdings posted a negative return for the reporting period, and the benchmark had no exposure to that market. FINANCIALS, INDUSTRIALS LED ALL SECTORS The financials sector, the largest weighting in the portfolio, made the greatest positive contribution to relative performance. Our overweight to Deutsche Boerse AG, the Germany-based owner of several securities exchanges, led to solid results for the diversified financial services area. In addition, our position in China Merchants Bank, an emerging-market investment not represented in the benchmark, boosted performance in the commercial banking segment, as the stock returned 142% during the reporting period. Top Ten Holdings as of November 30, 2007 % of net % of net assets as of assets as of 11/30/07 5/31/07 Deutsche Boerse AG 1.7% 1.1% Nintendo Co., Ltd. 1.7% 1.5% Julius Baer Holding AG 1.7% 1.2% National Bank of Greece SA 1.6% 1.5% Saipem SpA 1.6% 1.1% BG Group plc 1.5% 1.2% Nestle SA 1.5% 0.5% BHP Billiton Ltd. 1.5% 1.2% America Movil, SAB de CV ADR 1.4% 0.9% Daikin Industries Ltd. 1.3% 0.5% *Data provided by Lipper Inc. -- A Reuters Company. ©2007 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Lipper Fund Performance -- Performance data is total return, and is preliminary and subject to revision. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. - ------ 4 NT International Growth The portfolio's relative performance also benefited from strong stock selection combined with an overweight in the industrials sector. In particular, our stocks in the electrical equipment industry performed well, including Q-Cells AG, the German manufacturer of solar cells, and Vestas Wind Systems, a Danish supplier of wind power solutions. Our information technology stocks also were strong contributors, led by Japan's Nintendo, a videogame manufacturer, which advanced 160% during the reporting period on strong sales of its Wii gaming system. Nintendo was the portfolio's top contributor for the reporting period. CONSUMER SECTOR LAGGED Despite posting a total return of 24.06% for the reporting period, the portfolio's consumer staples sector was the greatest laggard relative to the benchmark. Our stock selection and underweight in the food products industry and avoidance of the tobacco industry primarily accounted for the shortfall. The telecommunication services sector also detracted, primarily due to our slight overweight to the sector. OUTLOOK NT International Growth seeks companies located throughout the world, excluding the United States, exhibiting accelerating earnings and revenue growth. Our analysis indicates the outlook for large-cap growth companies remains favorable. The portfolio has broad exposure to high-quality growth companies in numerous markets, and we believe these companies will deliver solid returns, even during volatile market conditions. Investments by Country as of November 30, 2007 % of net % of net assets as of assets as of 11/30/07 5/31/07 United Kingdom 13.6% 14.6% Japan 13.3% 17.0% Germany 10.5% 10.0% Switzerland 10.3% 11.1% France 8.7% 8.8% Australia 5.8% 4.4% Canada 3.6% 0.7% Spain 3.4% 1.7% Italy 3.3% 4.0% India 3.1% 2.4% Denmark 2.2% 0.8% Norway 2.0% 2.3% Belgium 2.0% 1.7% Singapore 2.0% 0.7% Other Countries 15.6% 15.6% Cash and Equivalents(1) 0.6% 4.2% (1) Includes temporary cash investments, securities lending collateral and other assets and liabilities. Types of Investments in Portfolio % of net % of net assets as of assets as of 11/30/07 5/31/07 Foreign Common Stocks 99.0% 95.4% Foreign Preferred Stocks 0.4% 0.4% TOTAL EQUITY EXPOSURE 99.4% 95.8% Temporary Cash Investments 1.2% 2.5% Other Assets and Liabilities(2) (0.6)% 1.7% (2) Includes securities lending collateral and other assets and liabilities. - ------ 5 SCHEDULE OF INVESTMENTS NT International Growth NOVEMBER 30, 2007 Shares Value Common Stocks -- 99.0% AUSTRALIA -- 5.8% 4,600 Babcock & Brown Ltd.(1) $ 107,474 25,931 BHP Billiton Ltd.(1) 985,384 89,061 Boart Longyear Group(2) 190,797 22,400 CSL Ltd. 692,044 72,400 Oxiana Ltd.(1) 256,680 28,623 QBE Insurance Group Ltd. 828,490 4,146 Rio Tinto Ltd.(1) 533,653 12,000 Westpac Banking Corp. 301,079 ----------- 3,895,601 ----------- AUSTRIA -- 0.7% 6,335 Erste Bank der oesterreichischen Sparkassen AG 456,917 ----------- BELGIUM -- 2.0% 4,355 KBC Groupe 602,789 12,030 SES SA Fiduciary Depositary Receipt(2) 302,543 1,897 Umicore 444,714 ----------- 1,350,046 ----------- BRAZIL -- 1.0% 4,400 Bolsa de Mercadorias e Futuros - BM&F SA(2) 59,254 20,700 Redecard SA 375,987 18,600 Unibanco-Uniao de Bancos Brasileiros SA 275,326 ----------- 710,567 ----------- CANADA -- 3.6% 5,500 EnCana Corp. 358,875 6,400 Research In Motion Ltd.(2) 728,448 16,300 Rogers Communications Inc. Cl B 677,564 6,224 Shoppers Drug Mart Corp. 341,517 3,600 Suncor Energy Inc. 344,265 ----------- 2,450,669 ----------- CZECH REPUBLIC -- 1.0% 9,100 CEZ AS 672,588 ----------- DENMARK -- 2.2% 6,400 Novo Nordisk AS B Shares 809,182 7,000 Vestas Wind Systems AS(2) 661,909 ----------- 1,471,091 ----------- FINLAND -- 1.3% 2,400 Metso Oyj 130,181 19,600 Nokia Oyj 772,162 ----------- 902,343 ----------- Shares Value FRANCE -- 8.7% 3,721 Accor SA $ 315,462 3,000 ALSTOM Co. 673,784 14,331 AXA SA 581,495 7,982 Groupe Danone 704,403 3,500 L'Oreal SA 485,755 2,367 PPR SA 398,923 1,300 Renault SA 189,538 1,500 Schneider Electric SA 208,040 5,178 Societe Generale 793,412 4,400 Suez SA 291,492 10,924 Total SA 884,138 4,200 Vinci SA 332,713 ----------- 5,859,155 ----------- GERMANY -- 10.1% 2,400 Allianz SE 494,202 3,774 Arcandor AG(2) 113,976 5,000 BASF AG 692,927 2,900 Continental AG 377,730 6,240 Deutsche Boerse AG 1,169,396 10,370 Fresenius Medical Care AG & Co. KGaA 578,835 14,543 GEA Group AG(2) 526,971 4,200 Hochtief AG 555,529 2,782 K+S AG 568,182 2,900 Linde AG 379,334 4,500 Q-Cells AG(2) 628,485 5,100 SAP AG 259,979 3,400 Siemens AG 516,123 ----------- 6,861,669 ----------- GREECE -- 1.6% 16,000 National Bank of Greece SA 1,070,091 ----------- HONG KONG -- 1.5% 52,700 Esprit Holdings Ltd. 795,510 13,300 Hang Seng Bank Ltd. 254,566 ----------- 1,050,076 ----------- INDIA -- 3.1% 7,100 Bharat Heavy Electricals Ltd. 483,487 15,400 Bharti Airtel Ltd.(2) 365,899 5,800 DLF Ltd. 138,452 7,600 Housing Development Finance Corp. Ltd. 537,142 4,500 Reliance Industries Ltd. 324,619 10,500 Tata Consultancy Services Ltd. 269,996 ----------- 2,119,595 ----------- - ------ 6 NT International Growth Shares Value IRELAND -- 0.6% 8,693 Anglo Irish Bank Corp. plc $ 151,677 11,200 Kingspan Group plc 236,732 ----------- 388,409 ----------- ITALY -- 3.3% 7,500 Bulgari SpA 111,087 7,811 ENI SpA 279,133 9,200 Fiat SpA 253,327 8,600 Finmeccanica SpA 256,760 9,232 Luxottica Group SpA 307,806 26,062 Saipem SpA 1,050,591 ----------- 2,258,704 ----------- JAPAN -- 13.3% 13,300 Canon, Inc. 700,130 17,500 Daikin Industries Ltd.(1) 901,246 2,200 Fanuc Ltd. 230,130 6,700 Ibiden Co. Ltd. 529,830 23,000 Isuzu Motors Ltd. 106,543 44,000 Kobe Steel Ltd. 144,878 16,000 Kuraray Co. Ltd. 196,772 5,000 Makita Corp. 222,436 78,000 Marubeni Corp. 598,708 23,000 Mitsubishi Electric Corp. 262,337 1,900 Nintendo Co., Ltd. 1,167,570 42,000 Nippon Yusen Kabushiki Kaisha 364,584 200 NTT DoCoMo, Inc. 317,395 124 Sony Financial Holdings Inc.(2) 468,556 40,000 Sumitomo Chemical Co., Ltd. 341,281 20,000 Sumitomo Heavy Industries Ltd. 217,337 62,000 Sumitomo Metal Industries Ltd. 274,926 14,000 Sumitomo Realty & Development Co. Ltd.(1) 425,282 7,000 Terumo Corp.(1) 353,524 14,800 Toyota Motor Corp. 833,118 3,100 Yamada Denki Co. Ltd. 359,072 ----------- 9,015,655 ----------- MALAYSIA -- 0.6% 132,900 Bumiputra -- Commerce Holdings Bhd 424,214 ----------- MEXICO -- 1.4% 15,248 America Movil, SAB de CV ADR 940,191 ----------- NETHERLANDS -- 1.2% 4,855 ASML Holding N.V. 168,512 9,500 Heineken N.V. 621,386 ----------- 789,898 ----------- Shares Value NORWAY -- 2.0% 11,890 Aker Kvaerner ASA $ 338,854 23,800 StatoilHydro ASA 773,552 6,300 Yara International ASA 239,405 ----------- 1,351,811 ----------- PEOPLE'S REPUBLIC OF CHINA -- 1.1% 84,000 Agile Property Holdings Ltd. 167,403 536 Alibaba.com Ltd.(1)(2) 2,750 133,500 China Merchants Bank Co., Ltd. Cl H 619,557 ----------- 789,710 ----------- SINGAPORE -- 2.0% 86,000 Keppel Corp. Ltd. 800,485 93,000 Oversea-Chinese Banking Corp. 548,493 ----------- 1,348,978 ----------- SOUTH AFRICA -- 1.4% 8,499 Anglo American plc 575,469 17,900 MTN Group Ltd. 360,560 ----------- 936,029 ----------- SOUTH KOREA -- 0.2% 4,400 Hynix Semiconductor Inc.(2) 123,529 ----------- SPAIN -- 3.4% 14,200 Banco Bilbao Vizcaya Argentaria SA(1) 352,068 20,200 Cintra Concesiones de Infraestructuras de Transporte SA 322,937 730 Cintra Concesiones de Infraestructuras de Transporte SA Entitlement Shares 11,658 12,501 Inditex SA 868,242 22,400 Telefonica SA 750,164 ----------- 2,305,069 ----------- SWITZERLAND -- 10.3% 30,015 ABB Ltd. 882,817 6,631 Compagnie Financiere Richemont SA Cl A 455,850 6,600 Holcim Ltd. 707,105 13,600 Julius Baer Holding AG 1,141,806 2,100 Nestle SA 1,004,889 6,765 Novartis AG 383,498 4,366 Roche Holding AG 829,804 2,200 Sonova Holding AG 235,558 3,507 Syngenta AG 869,019 8,858 UBS AG 445,575 ----------- 6,955,921 ----------- - ------ 7 NT International Growth Shares Value TAIWAN (REPUBLIC OF CHINA) -- 1.4% 187,000 AU Optronics Corp. $ 365,533 91,800 Hon Hai Precision Industry Co., Ltd. 588,230 ----------- 953,763 ----------- TURKEY -- 0.6% 48,200 Turkiye Garanti Bankasi AS 423,637 ----------- UNITED KINGDOM -- 13.6% 13,900 Admiral Group plc 297,988 13,800 Aggreko plc 143,904 18,800 AMEC plc 297,605 12,851 Barclays plc 148,937 48,331 BG Group plc 1,012,797 7,465 British Sky Broadcasting Group plc 96,023 64,210 Burberry Group plc 759,950 19,801 Capita Group plc 302,022 20,100 Compass Group plc 131,637 19,300 easyJet plc(2) 223,221 8,172 GlaxoSmithKline plc 215,791 28,405 HSBC Holdings plc 485,226 64,800 International Power plc 621,803 49,014 Man Group plc 561,405 56,016 Man Group plc Cl B 78,422 13,207 Reckitt Benckiser Group plc 784,584 24,300 Reed Elsevier plc 305,539 23,800 Scottish and Southern Energy plc 777,683 90,882 Tesco plc 895,907 55,900 TUI Travel plc(2) 316,327 206,800 Vodafone Group plc 774,179 ----------- 9,230,950 ----------- TOTAL COMMON STOCKS (Cost $54,383,179) 67,106,876 ----------- Preferred Stocks -- 0.4% GERMANY -- 0.4% 4,500 Henkel KGaA 248,482 (Cost $239,648) ----------- Temporary Cash Investments -- 1.2% Repurchase Agreement, Credit Suisse First Boston, Inc., (collateralized by various U.S. Treasury obligations, 6.25%, 8/15/23, valued at $815,473), in a joint trading account at 3.05%, dated 11/30/07, due 12/3/07 (Delivery value $800,203) (Cost $800,000) 800,000 ----------- Shares Value Temporary Cash Investments -- Securities Lending Collateral(3) -- 4.5% Repurchase Agreement, BNP Paribas, (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.65%, dated 11/30/07, due 12/3/07 (Delivery value $1,350,523) $ 1,350,000 Repurchase Agreement, Deutsche Bank Securities, Inc., (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.56%, dated 11/30/07, due 12/3/07 (Delivery value $316,467) 316,347 Repurchase Agreement, Lehman Brothers, Inc., (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.64%, dated 11/30/07, due 12/3/07 (Delivery value $1,350,522) 1,350,000 ----------- TOTAL TEMPORARY CASH INVESTMENTS -- SECURITIES LENDING COLLATERAL (Cost $3,016,347) 3,016,347 ----------- TOTAL INVESTMENT SECURITIES -- 105.1% (Cost $58,439,174) 71,171,705 ----------- OTHER ASSETS AND LIABILITIES -- (5.1)% (3,468,793) ----------- TOTAL NET ASSETS -- 100.0% $67,702,912 ============ Market Sector Diversification (as a % of net assets) Financials 21.7% Industrials 16.2% Consumer Discretionary 11.3% Materials 10.6% Information Technology 8.4% Energy 7.9% Consumer Staples 7.5% Telecommunication Services 6.2% Health Care 6.1% Utilities 3.5% Cash and Equivalents* 0.6% * Includes temporary cash investments, securities lending collateral and other assets and liabilities. - ------ 8 NT International Growth Notes to Schedule of Investments ADR = American Depositary Receipt (1) Security, or a portion thereof, was on loan as of November 30, 2007. (2) Non-income producing. (3) Investments represent purchases made by the lending agent with cash collateral received through securities lending transactions. As of November 30, 2007, securities with an aggregate value of $63,163,844, which represented 93.3% of total net assets, were valued in accordance with alternative pricing procedures adopted by the Board of Directors. See Notes to Financial Statements. - ------ 9 PERFORMANCE NT Emerging Markets Total Returns as of November 30, 2007 Since Inception 1 year Inception Date INSTITUTIONAL CLASS 48.22% 37.06% 5/12/06 MSCI EM INDEX 45.15% 29.85% -- Growth of $10,000 Over Life of Class $10,000 investment made May 12, 2006
![](https://capedge.com/proxy/N-CSR/0000872825-08-000005/growthntemgmkt0801.gif)
One-Year Returns Over Life of Class Periods ended November 30 2006* 2007 10.10% 48.22% Institutional Class 3.37% 45.15% MSCI EM Index *From 5/12/06, the Institutional Class's inception date. Not annualized. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. The fund's performance may be affected by investments in initial public offerings. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. - ------ 10 PORTFOLIO COMMENTARY NT Emerging Markets Portfolio Managers: Mark On and Patricia Ribeiro PERFORMANCE SUMMARY NT Emerging Markets gained 48.22% during the 12 months ended November 30, 2007. The portfolio's benchmark, the MSCI EM Index, advanced 45.15%. Compared to its peers, NT Emerging Markets outperformed the average return of 41.98%* for the 257 funds in Lipper Inc.'s Emerging Markets Funds category. Strong global economic growth combined with a weak U.S. dollar helped generate strong 12-month performance among international stocks, particularly those from the world's emerging markets. Emerging market stocks significantly outperformed the developed markets, which, as measured by the MSCI EAFE Index, returned 17.30% for the reporting period. The portfolio's performance benefited from this trend, along with our stock selection across most market sectors. Overall, stock selection accounted for the portfolio's outperformance relative to the benchmark. On an absolute basis, all sectors the portfolio invested in posted positive returns and made positive contributions to performance. Compared with the benchmark, each of the portfolio's market sectors outperformed except materials, financials and health care. The portfolio also derived a portion of its returns from participating in several initial public offerings (IPOs). RUSSIA, INDIA, SOUTH KOREA OUTPERFORMED From a country perspective, Russia, India and South Korea had the greatest positive influence on the portfolio's relative performance. Stock selection was the key contributor in all three markets. Brazil and China detracted from the portfolio's relative performance, with stock selection accounting for the shortfall. TECH, ENERGY, CONSUMER DISCRETIONARY LED ALL SECTORS Good stock selection helped make the information technology sector the top contributor to the portfolio's relative performance. Our stock picks and allocation decisions were particularly strong in the semiconductor industry, where underweighting South Korea's Samsung Electronics, which faced waning demand in the memory chip market, proved effective. Top Ten Holdings as of November 30, 2007 % of net % of net assets as of assets as of 11/30/07 5/31/07 Petroleo Brasileiro SA ADR 3.0% 1.5% China Mobile Ltd. ADR 2.3% -- Cia Vale do Rio Doce ADR 2.1% 1.7% PT Bumi Resources Tbk 1.8% -- America Movil, SAB de CV ADR 1.7% 1.5% Turkiye Garanti Bankasi AS 1.7% 1.4% Samsung Electronics 1.5% 1.9% China National Building Material Co. Ltd. Cl H 1.4% 0.3% Focus Media Holding Ltd. ADR 1.4% 0.7% ICICI Bank Ltd. ADR 1.4% 1.2% *Data provided by Lipper Inc. -- A Reuters Company. ©2007 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Lipper Fund Performance -- Performance data is total return, and is preliminary and subject to revision. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. - ------ 11 NT Emerging Markets In the energy sector, good security selection -- particularly in the oil, gas and consumable fuels industry -- helped the portfolio outperform the benchmark. Similarly, our favorable stock choices led to outperformance for the portfolio's consumer discretionary sector. For example, in the auto components industry, Nokian Renkaat Oyj, a position not represented in the benchmark, contributed strongly to relative performance. The Finnish tire manufacturer advanced on strong sales and profit growth, primarily in Russia. Another out-of-benchmark position, Parkson Retail Group, which operates a chain of department stores in China, benefited from the company's expansion plans and China's growing retail market. MATERIALS, FINANCIALS LAGGED The materials and financials sectors were the largest detractors to the portfolio's relative performance. This primarily was due to our underweighted positions in both sectors and to lagging stocks in the financials sector. The financials sector was the portfolio's largest, yet underweights and stock selection in the insurance and capital markets segments detracted from the portfolio's performance. The subprime mortgage market mess reverberated globally during the reporting period and dragged down holdings such as Shin Kong Financial Holding, a Taiwanese life insurer that acknowledged a portion of its fixed income portfolio was backed by U.S. subprime mortgages. In addition, not having any exposure to diversified financial services companies hurt the portfolio's results relative to the benchmark. OUTLOOK Focusing almost exclusively on equity securities of companies located in emerging market countries, we seek out companies with earnings and revenues growing at an improving rate. We will continue to select stocks based on extensive company-level research that focuses on identifying accelerating growth characteristics. Investments by Country as of November 30, 2007 % of net % of net assets as of assets as of 11/30/07 5/31/07 People's Republic of China 14.6% 5.7% South Korea 12.9% 15.2% Brazil 11.5% 13.1% India 9.0% 5.0% Russian Federation 7.4% 5.8% South Africa 6.8% 8.1% Taiwan (Republic of China) 6.8% 10.8% Mexico 4.7% 5.7% Indonesia 4.3% 2.5% Hong Kong 3.0% 3.3% Turkey 2.8% 2.1% Chile 2.5% 3.6% Czech Republic 2.1% 1.7% Malaysia 2.0% 3.3% Other Countries 5.7% 8.6% Cash and Equivalents(1) 3.9% 5.5% (1) Includes temporary cash investments, securities lending collateral and other assets and liabilities. Types of Investments in Portfolio % of net % of net assets as of assets as of 11/30/07 5/31/07 Foreign Common Stocks and Rights 96.1% 93.1% Foreign Preferred Stocks -- 1.4% TOTAL EQUITY EXPOSURE 96.1% 94.5% Temporary Cash Investments 3.5% 4.2% Other Assets and Liabilities(2) 0.4% 1.3% (2) Includes securities lending collateral and other assets and liabilities. - ------ 12 SCHEDULE OF INVESTMENTS NT Emerging Markets NOVEMBER 30, 2007 Shares Value Common Stocks -- 96.1% BRAZIL -- 11.5% 900 Bolsa de Mercadorias e Futuros -- BM&F SA(1) $ 12,120 17,300 Cia Vale do Rio Doce ADR 598,234 8,549 Dufry South America Ltd. BDR(1) 246,194 16,600 Lojas Renner SA 387,980 12,733 LPS Brasil -- Consultoria de Imoveis SA(1) 197,691 7,600 Lupatech SA 211,464 9,700 Marisa SA(1) 57,865 17,400 Net Servicos de Comunicacao SA(1) 257,563 8,764 Petroleo Brasileiro SA ADR 843,973 15,250 Redecard SA 276,995 5,200 Totvs SA 176,516 ----------- 3,266,595 ----------- CHILE -- 2.5% 53,973 Cencosud SA 203,539 16,400 Compania Cervecerias Unidas SA 118,636 36,010 La Polar SA 271,874 8,500 Lan Airlines SA ADR(2) 125,375 ----------- 719,424 ----------- CZECH REPUBLIC -- 2.1% 4,400 CEZ AS 325,207 1,200 Komercni Banka AS 270,310 ----------- 595,517 ----------- EGYPT -- 0.8% 2,600 Orascom Construction Industries 237,064 ----------- HONG KONG -- 3.0% 164,000 AAC Acoustic Technology Holdings Inc.(1) 222,065 7,000 China Mobile Ltd. ADR 641,620 ----------- 863,685 ----------- INDIA -- 9.0% 7,600 ABB India Ltd. 299,409 4,900 Bharat Heavy Electricals Ltd. 333,674 12,841 DLF Ltd. 306,527 6,500 ICICI Bank Ltd. ADR 393,315 14,100 JSW Steel Ltd. 359,887 156 Mundra Port and Special Economic Zone Ltd.(1) 3,643 Shares Value 13,800 Reliance Communication Ventures Ltd. $ 235,525 5,100 Reliance Industries Ltd. 367,902 14,200 Rolta India Ltd. 262,085 ----------- 2,561,967 ----------- INDONESIA -- 4.3% 116,000 PT Astra International Tbk 310,722 558,000 PT Bank Mandiri Tbk 212,558 846,000 PT Bumi Resources Tbk 513,288 17,500 PT International Nickel Indonesia Tbk 176,761 ----------- 1,213,329 ----------- ISRAEL -- 0.6% 1,500 Elbit Systems Ltd. 85,079 8,200 Israel Chemicals Ltd. 87,486 ----------- 172,565 ----------- KAZAKHSTAN -- 0.7% 7,169 KazMunaiGas Exploration Production GDR 192,342 ----------- MALAYSIA -- 2.0% 99,100 Bumiputra -- Commerce Holdings Bhd 316,325 46,700 Genting Bhd 110,824 114,100 Resorts World Bhd 129,225 ----------- 556,374 ----------- MEXICO -- 4.7% 8,000 America Movil, SAB de CV ADR 493,280 111,561 Axtel, SAB de CV(1) 273,479 4,746 Grupo Aeroportuario del Pacifico, SAB de CV ADR 217,984 50,700 Grupo Financiero Banorte, SAB de CV(2) 219,764 34,775 Urbi Desarrollos Urbanos, SAB de CV(1)(2) 117,912 ----------- 1,322,419 ----------- PAKISTAN -- 0.6% 8,527 Oil & Gas Development Co. Ltd. GDR 166,277 ----------- PEOPLE'S REPUBLIC OF CHINA -- 14.6% 188,000 Agile Property Holdings Ltd.(2) 374,664 50,141 Alibaba.com Ltd.(1)(2) 257,270 200 Baidu.com, Inc. ADR(1) 76,392 261,000 China Construction Bank Cl H 252,470 620,000 China Gas Holdings Ltd.(2) 289,100 65,000 China Merchants Bank Co., Ltd. Cl H 301,656 - ------ 13 NT Emerging Markets Shares Value 92,000 China National Building Material Co. Ltd. Cl H $ 400,526 214,000 China Petroleum & Chemical Corp. Cl H 325,515 28,000 China Shenhua Energy Co. Ltd. Cl H(2) 166,475 200,000 China Yurun Food Group Ltd. 329,232 200,000 CNOOC Ltd. 368,769 7,072 Focus Media Holding Ltd. ADR(1)(2) 399,143 109,000 Nine Dragons Paper Holdings Ltd. 274,954 32,000 Parkson Retail Group Ltd. 339,533 ----------- 4,155,699 ----------- PERU -- 0.7% 2,600 Credicorp Ltd. 185,094 ----------- PHILIPPINES -- 1.6% 2,401,000 Alliance Global Group Inc.(1) 324,060 321,100 Robinsons Land Corp. 138,955 ----------- 463,015 ----------- POLAND -- 0.7% 1,000 BRE Bank SA(1) 199,905 ----------- RUSSIAN FEDERATION -- 7.4% 4,000 Mobile TeleSystems ADR 362,800 4,800 OAO Gazprom ADR(1) 251,985 2,800 OAO LUKOIL 241,510 7,273 OAO TMK GDR 315,323 700 OJSC MMC Norilsk Nickel ADR 202,673 8,101 OJSC Pharmstandard GDR(1) 190,420 53,800 Sberbank(1) 226,941 4,700 Uralkali GDR (Acquired 10/15/07-11/30/07, Cost $98,205)(1)(3) 112,800 5,869 X5 Retail Group N.V. GDR(1) 184,135 ----------- 2,088,587 ----------- SOUTH AFRICA -- 6.8% 3,376 Anglo American plc 225,118 8,982 Barloworld Ltd. 150,219 149,100 Dimension Data Holdings plc(2) 186,955 15,800 Exxaro Resources Ltd. 240,959 6,300 Impala Platinum Holdings Limited 218,601 8,466 Kumba Iron Ore Ltd.(2) 335,387 16,800 Murray & Roberts Holdings Ltd. 237,330 31,632 Pretoria Portland Cement Co. Ltd. 210,111 6,500 Sun International Ltd. 135,467 ----------- 1,940,147 ----------- Shares Value SOUTH KOREA -- 12.9% 1,400 Daelim Industrial Co., Ltd. $ 246,403 4,200 Doosan Infracore Co., Ltd. 149,223 3,830 GS Holdings Corp. 258,360 1,400 Hyundai Department Store Co. Ltd. 171,020 700 Hyundai Heavy Industries Co., Ltd. 357,874 2,400 LG.Philips LCD Co., Ltd.(1) 135,122 7,400 LIG Non-Life Insurance Co., Ltd. 183,384 1,100 MegaStudy Co., Ltd. 373,157 500 Mirae Asset Securities Co. Ltd.(1) 85,262 3,000 Modetour Network Inc. 165,646 1,300 NHN Corp.(1) 369,156 400 POSCO 252,675 700 Samsung Electronics 428,803 4,420 Shinhan Financial Group Co., Ltd. 240,704 300 Shinsegae Co. Ltd. 236,152 ----------- 3,652,941 ----------- TAIWAN (REPUBLIC OF CHINA) -- 6.8% 137,611 Asia Cement Corp. 201,115 153,000 AU Optronics Corp. 299,072 47,000 Catcher Technology Co. Ltd. 290,078 145,426 China Steel Corp. 191,185 55,080 Hon Hai Precision Industry Co., Ltd. 352,939 112,000 U-Ming Marine Transport Corp. 299,280 176,565 Wistron Corp. 304,934 ----------- 1,938,603 ----------- TURKEY -- 2.8% 20,200 Enka Insaat ve Sanayi AS 325,370 53,500 Turkiye Garanti Bankasi AS 470,220 ----------- 795,590 ----------- TOTAL COMMON STOCKS (Cost $19,903,408) 27,287,139 ----------- Temporary Cash Investments -- 3.5% Repurchase Agreement, Credit Suisse First Boston, Inc., (collateralized by various U.S. Treasury obligations, 6.25%, 8/15/23, valued at $1,019,342), in a joint trading account at 3.05%, dated 11/30/07, due 12/3/07 (Delivery value $1,000,254) (Cost $1,000,000) 1,000,000 ----------- - ------ 14 NT Emerging Markets Shares Value Temporary Cash Investments -- Securities Lending Collateral(4) -- 5.9% Repurchase Agreement, BNP Paribas, (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.65%, dated 11/30/07, due 12/3/07 (Delivery value $400,155) $ 400,000 Repurchase Agreement, Deutsche Bank Securities, Inc., (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.56%, dated 11/30/07, due 12/3/07 (Delivery value $861,308) 860,981 Repurchase Agreement, Lehman Brothers, Inc., (collateralized by various U.S. Government Agency obligations in a pooled account at the lending agent), 4.64%, dated 11/30/07, due 12/3/07 (Delivery value $400,155) 400,000 ----------- TOTAL TEMPORARY CASH INVESTMENTS -- SECURITIES LENDING COLLATERAL (Cost $1,660,981) 1,660,981 ----------- TOTAL INVESTMENT SECURITIES -- 105.5% (Cost $22,564,389) 29,948,120 ----------- OTHER ASSETS AND LIABILITIES -- (5.5)% (1,569,749) ----------- TOTAL NET ASSETS -- 100.0% $28,378,371 =========== Market Sector Diversification (as a % of net assets) Financials 17.1% Materials 14.4% Energy 14.1% Consumer Discretionary 12.2% Information Technology 11.8% Industrials 11.6% Telecommunication Services 7.1% Consumer Staples 4.9% Utilities 2.2% Health Care 0.7% Cash and Equivalents* 3.9% * Includes temporary cash investments, securities lending collateral and other assets and liabilities. Notes to Schedule of Investments ADR = American Depositary Receipt BDR = Brazilian Depositary Receipt GDR = Global Depositary Receipt OJSC = Open Joint Stock Company (1) Non-income producing. (2) Security, or a portion thereof, was on loan as of November 30, 2007. (3) Security was purchased under Rule 144A of the Securities Act of 1933 or is a private placement and, unless registered under the Act or exempted from registration, may only be sold to qualified institutional investors. The aggregate value of restricted securities at November 30, 2007 was $112,800, which represented 0.4% of total net assets. (4) Investments represent purchases made by the lending agent with cash collateral received through securities lending transactions. As of November 30, 2007, securities with an aggregate value of $19,807,534, which represented 69.8% of total net assets, were valued in accordance with alternative pricing procedures adopted by the Board of Directors. See Notes to Financial Statements. - ------ 15 SHAREHOLDER FEE EXAMPLES (UNAUDITED) Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from June 1, 2007 to November 30, 2007. 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 fund, or Institutional Class shares of the American Century Diversified Bond Fund, in an American Century account (i.e., not a financial intermediary or retirement plan account), American Century may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all PERSONAL ACCOUNTS (including American Century 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 Brokerage accounts, you are currently not subject to this fee. We will not charge the fee as long as you choose to manage your accounts exclusively online. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund's share class. The hypothetical 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. - ------ 16 Expenses Paid Beginning Ending During Period* Account Value Account Value 6/1/07 - Annualized 6/1/07 11/30/07 11/30/07 Expense Ratio* NT International Growth -- Institutional Class Actual $1,000 $1,085.30 $5.59 1.07% Hypothetical $1,000 $1,019.70 $5.42 1.07% NT Emerging Markets -- Institutional Class Actual $1,000 $1,215.50 $7.94 1.43% Hypothetical $1,000 $1,017.90 $7.23 1.43% *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 183, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. - ------ 17 STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 2007 NT International NT Emerging Growth Markets ASSETS Investment securities -- at value (cost of $55,422,827 and $20,903,408, respectively) -- including $2,919,428 and $1,642,441 of securities on loan, respectively $68,155,358 $28,287,139 Investments made with cash collateral received for securities on loan, at value (cost of $3,016,347 and $1,660,981, respectively) 3,016,347 1,660,981 ----------- ----------- Total investment securities -- at value (cost of $58,439,174 and $22,564,389, respectively) 71,171,705 29,948,120 Cash 14,642 7,038 Foreign currency holdings, at value (cost of $43,105 and $72,912, respectively) 43,402 72,723 Receivable for investments sold 509,774 304,977 Dividends and interest receivable 126,181 34,269 ----------- ----------- 71,865,704 30,367,127 ----------- ----------- LIABILITIES Payable for collateral received for securities on loan 3,016,347 1,660,981 Payable for investments purchased 1,088,556 296,008 Accrued management fees 57,889 31,767 ----------- ----------- 4,162,792 1,988,756 ----------- ----------- NET ASSETS $67,702,912 $28,378,371 =========== =========== INSTITUTIONAL CLASS CAPITAL SHARES, $0.01 PAR VALUE Authorized 50,000,000 50,000,000 =========== =========== Outstanding 5,323,213 1,752,457 =========== =========== NET ASSET VALUE PER SHARE $12.72 $16.19 =========== =========== NET ASSETS CONSIST OF: Capital (par value and paid-in surplus) $53,284,140 $17,001,929 Undistributed net investment income 569,114 218,538 Undistributed net realized gain on investment and foreign currency transactions 1,163,990 3,854,942 Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies 12,685,668 7,302,962 ----------- ----------- $67,702,912 $28,378,371 =========== =========== See Notes to Financial Statements. - ------ 18 STATEMENT OF OPERATIONS YEAR ENDED NOVEMBER 30, 2007 NT NT International Emerging Growth Markets INVESTMENT INCOME (LOSS) INCOME: Dividends (net of foreign taxes withheld of $96,330 and $45,593, respectively) $ 1,180,040 $543,066 Interest 41,217 30,186 Securities lending 20,842 1,132 ----------- ---------- 1,242,099 574,384 ----------- ---------- EXPENSES: Management fees 594,176 324,338 Directors' fees and expenses 992 394 Other expenses 3,084 191 ----------- ---------- 598,252 324,923 ----------- ---------- NET INVESTMENT INCOME (LOSS) 643,847 249,461 ----------- ---------- REALIZED AND UNREALIZED GAIN (LOSS) NET REALIZED GAIN (LOSS) ON: Investment transactions (net of foreign taxes accrued of $34,410 and $19,263, respectively) 1,434,368 3,523,495 Foreign currency transactions (net of foreign taxes accrued of $-- and $249, respectively) 1,255,442 418,833 ----------- ---------- 2,689,810 3,942,328 ----------- ---------- CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON: Investments (net of foreign taxes accrued of $(31,009) and $(72,797), respectively) 6,162,057 4,617,096 Translation of assets and liabilities in foreign currencies 2,535,293 394,068 ----------- ---------- 8,697,350 5,011,164 ----------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) 11,387,160 8,953,492 ----------- ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $12,031,007 $9,202,953 =========== ========== See Notes to Financial Statements. - ------ 19 STATEMENT OF CHANGES IN NET ASSETS YEAR ENDED NOVEMBER 30, 2007 AND PERIOD ENDED NOVEMBER 30, 2006(1) NT International Growth NT Emerging Markets Increase (Decrease) in Net Assets 2007 2006 2007 2006 OPERATIONS Net investment income (loss) $ 643,847 $ 118,808 $ 249,461 $ 134,730 Net realized gain (loss) 2,689,810 (1,581,308) 3,942,328 (120,093) Change in net unrealized appreciation (depreciation) 8,697,350 3,988,318 5,011,164 2,291,798 ----------- ----------- ------------ ----------- Net increase (decrease) in net assets resulting from operations 12,031,007 2,525,818 9,202,953 2,306,435 ----------- ----------- ------------ ----------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income (138,053) -- (132,946) -- ----------- ----------- ------------ ----------- CAPITAL SHARE TRANSACTIONS Proceeds from shares sold 25,863,755 44,735,507 10,699,873 17,857,562 Payments for shares redeemed (16,433,430) (881,692) (11,235,649) (319,857) ----------- ----------- ------------ ----------- Net increase (decrease) in net assets from capital share transactions 9,430,325 43,853,815 (535,776) 17,537,705 ----------- ----------- ------------ ----------- NET INCREASE (DECREASE) IN NET ASSETS 21,323,279 46,379,633 8,534,231 19,844,140 NET ASSETS Beginning of period 46,379,633 -- 19,844,140 -- ----------- ----------- ------------ ----------- End of period $67,702,912 $46,379,633 $28,378,371 $19,844,140 =========== =========== ============ =========== Undistributed net investment income $569,114 $96,508 $218,538 $121,733 =========== =========== ============ =========== TRANSACTIONS IN SHARES OF THE FUNDS Sold 2,284,414 4,577,398 836,418 1,836,860 Redeemed (1,444,625) (93,974) (886,517) (34,304) ----------- ----------- ------------ ----------- Net increase (decrease) in shares of the funds 839,789 4,483,424 (50,099) 1,802,556 =========== =========== ============ =========== (1) May 12, 2006 (fund inception) through November 30, 2006. See Notes to Financial Statements. - ------ 20 NOTES TO FINANCIAL STATEMENTS NOVEMBER 30, 2007 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION -- American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act) as an open-end management investment company. NT International Growth Fund (NT International Growth) and NT Emerging Markets Fund (NT Emerging Markets) (collectively, the funds) are two funds in a series issued by the corporation. The funds are diversified under the 1940 Act. The funds' investment objective is to seek capital growth. The funds pursue this objective by investing primarily in equity securities of foreign companies. NT International Growth primarily invests in companies located in at least three developed countries (excluding United States). NT Emerging Markets invests at least 80% of its assets in securities of issuers in emerging market countries and companies that derive a significant portion of their business from emerging market countries. The funds are not permitted to invest in any securities issued by companies assigned by the Global Industry Classification Standard to the tobacco industry. The funds incepted on May 12, 2006. The following is a summary of the funds' significant accounting policies. SECURITY VALUATIONS -- Securities traded primarily on a principal securities exchange are valued at the last reported sales price, or at the mean of the latest bid and asked prices where no last sales price is available. Depending on local convention or regulation, securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official close price. Debt securities not traded on a principal securities exchange are valued through a commercial pricing service or at the mean of the most recent bid and asked prices. Discount notes may be valued through a commercial pricing service or at amortized cost, which approximates fair value. Securities traded on foreign securities exchanges and over-the-counter markets are normally completed before the close of business on days that the New York Stock Exchange (the Exchange) is open and may also take place on days when the Exchange is not open. If an event occurs after the value of a security was established but before the net asset value per share was determined that was likely to materially change the net asset value, that security would be valued as determined in accordance with procedures adopted by the Board of Directors. If the funds determine that the market price of a portfolio security is not readily available, or that the valuation methods mentioned above do not reflect the security's fair value, such security is valued as determined by, or in accordance with procedures adopted by, the Board of Directors or its designee if such determination would materially impact a fund's net asset value. Certain other circumstances may cause the funds to use alternative procedures to value a security such as: a security has been declared in default; trading in a security has been halted during the trading day; or there is a foreign market holiday and no trading will commence. SECURITY TRANSACTIONS -- For financial reporting purposes, security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The funds record the foreign tax expense, if any, on an accrual basis. The realized and unrealized tax provision reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively. INVESTMENT INCOME -- Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. EXCHANGE TRADED FUNDS -- The funds may invest in exchange traded funds (ETFs). ETFs are a type of index fund bought and sold on a securities exchange. An ETF trades like common stock and represents a fixed portfolio of securities designed to track the performance and dividend yield of a particular domestic or foreign market index. A fund may purchase an ETF to temporarily gain exposure to a portion of the U.S. or a foreign market while awaiting purchase of underlying securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities they are designed to track, although the lack of liquidity on an ETF could result in it being more volatile. Additionally, ETFs have management fees, which increase their cost. FOREIGN CURRENCY TRANSACTIONS -- All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Realized and unrealized gains and losses from foreign currency translations arise from changes in currency exchange rates. - ------ 21 Net realized and unrealized foreign currency exchange gains or losses occurring during the holding period of investment securities are a component of realized gain (loss) on foreign currency transactions and unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies, respectively. Certain countries may impose taxes on the contract amount of purchases and sales of foreign currency contracts in their currency. The funds record the foreign tax expense, if any, as a reduction to the net realized gain (loss) on foreign currency transactions. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- The funds may enter into forward foreign currency exchange contracts to facilitate transactions of securities denominated in a foreign currency or to hedge the funds' exposure to foreign currency exchange rate fluctuations. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the funds and the resulting unrealized appreciation or depreciation are determined daily using prevailing exchange rates. The funds bear the risk of an unfavorable change in the foreign currency exchange rate underlying the forward contract. Additionally, losses may arise if the counterparties do not perform under the contract terms. SECURITIES ON LOAN -- The funds may lend portfolio securities through their lending agent to certain approved borrowers in order to earn additional income. The funds continue to recognize any gain or loss in the market price of the securities loaned and record any interest earned or dividends declared. REPURCHASE AGREEMENTS -- The funds may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. Each repurchase agreement is recorded at cost. Each fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable each 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 each fund under each repurchase agreement. JOINT TRADING ACCOUNT -- Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, each fund, along with other registered investment companies having management agreements with ACIM or American Century Global Investment Management, Inc. (ACGIM), 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. INCOME TAX STATUS -- It is each fund's policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. At this time, management has not identified any uncertain tax positions that would materially impact the financial statements. Accordingly, no provision has been made for federal or state income taxes. Interest and penalties associated with any federal or state income tax obligations, if any, are recorded as interest expense. DISTRIBUTIONS TO SHAREHOLDERS -- Distributions to shareholders are recorded on the ex-dividend date. Distributions from net investment income, if any, are generally declared and paid annually. Distributions from net realized gains, if any, are generally declared and paid twice per year. The funds may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act. INDEMNIFICATIONS -- Under the corporation's organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business, the funds enter into contracts that provide general indemnifications. The funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. The risk of material loss from such claims is considered by management to be remote. USE OF ESTIMATES -- The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. 2. FEES AND TRANSACTIONS WITH RELATED PARTIES MANAGEMENT FEES -- The corporation has entered into a Management Agreement with ACGIM (the investment advisor), under which ACGIM provides the funds with investment advisory and management services in exchange for a single, unified management fee (the fee). The Agreement provides that all expenses of the funds, except brokerage commissions, taxes, interest, fees and expenses of those - ------ 22 directors who are not considered "interested persons" as defined in the 1940 Act (including counsel fees) and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on the daily net assets of each fund and paid monthly in arrears. For funds with a stepped fee schedule, the rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account all of the investment advisor's assets under management in each fund's investment strategy (strategy assets) to calculate the appropriate fee rate for each fund. The strategy assets include each fund's assets and the assets of other clients of the investment advisor that are not in the American Century family of funds, but that have the same investment team and investment strategy. The strategy assets of NT International Growth and NT Emerging Markets include the assets of International Growth Fund and Emerging Markets Fund, respectively, two funds in a series issued by the corporation. The annual management fee schedule for NT International Growth ranges from 0.90% to 1.30%. The annual management fee schedule for NT Emerging Markets ranges from 1.05% to 1.65%. The effective annual management fee for NT International Growth and NT Emerging Markets for the year ended November 30, 2007 was 1.06% and 1.46%, respectively. ACGIM has entered into a Subadvisory Agreement with ACIM (the subadvisor) on behalf of the funds. The subadvisor makes investment decisions for the cash portion of the funds in accordance with the funds' investment objectives, policies and restrictions under the supervision of ACGIM and the Board of Directors. ACGIM pays all costs associated with retaining ACIM as the subadvisor of the funds. RELATED PARTIES -- Certain officers and directors of the corporation are also officers and/or directors, and, as a group, controlling stockholders of American Century Companies, Inc. (ACC), the parent of the corporation's investment advisor, ACGIM, the corporation's subadvisor, ACIM, the distributor of the corporation, American Century Investment Services, Inc., and the corporation's transfer agent, American Century Services, LLC. The funds are wholly owned by American Century Asset Allocation Portfolios, Inc. (ACAAP). ACAAP does not invest in the funds for purpose of exercising management or control. Beginning in December 2006, the funds are eligible to invest in a money market fund for temporary purposes, which is managed by J.P. Morgan Investment Management, Inc. (JPMIM). JPMIM is a wholly owned subsidiary of JPMorgan Chase & Co. (JPM). JPM is an equity investor in ACC. The funds have a bank line of credit agreement and securities lending agreement with JPMorgan Chase Bank (JPMCB). JPMCB is a custodian of the funds and a wholly owned subsidiary of JPM. 3. INVESTMENT TRANSACTIONS Investment transactions, excluding short-term investments, for the year ended November 30, 2007, were as follows: NT International Growth NT Emerging Markets Purchases $70,196,786 $25,082,712 Proceeds from sales $57,648,047 $24,613,657 4. SECURITIES LENDING As of November 30, 2007, securities in NT International Growth and NT Emerging Markets valued at $2,919,428 and $1,642,441, respectively, were on loan through the lending agent, JPMCB, to certain approved borrowers. JPMCB receives and maintains collateral in the form of cash and/or acceptable securities as approved by ACIM. Cash collateral is invested in authorized investments by the lending agent in a pooled account. The value of cash collateral received at period end is disclosed in the Statement of Assets and Liabilities and investments made with the cash by the lending agent are listed in the Schedule of Investments. Any deficiencies or excess of collateral must be delivered or transferred by the member firms no later than the close of business on the next business day. The total value of all collateral received, at this date, was $3,016,347 and $1,660,981, respectively. The funds' risks in securities lending are that the borrower may not provide additional collateral when required or return the securities when due. If the borrower defaults, receipt of the collateral by the funds may be delayed or limited. - ------ 23 5. BANK LINE OF CREDIT The funds, along with certain other funds managed by ACIM or ACGIM, have a $500,000,000 unsecured bank line of credit agreement with JPMCB. The funds may borrow money for temporary or emergency purposes to fund shareholder redemptions. Borrowings under the agreement bear interest at the Federal Funds rate plus 0.40%. The funds did not borrow from the line during the year ended November 30, 2007. Effective December 12, 2007, the funds, along with certain other funds managed by ACIM or ACGIM, have a $500,000,000 unsecured bank line of credit agreement with Bank of America, N.A. (the Bank of America agreement). The funds may borrow money for temporary or emergency purposes to fund shareholder redemptions. Borrowings under the Bank of America agreement bear interest at the Federal Funds rate plus 0.40%. 6. RISK FACTORS There are certain risks involved in investing in foreign securities. These risks include those resulting from future adverse political, social, and economic developments, fluctuations in currency exchange rates, the possible imposition of exchange controls, and other foreign laws or restrictions. Investing in emerging markets may accentuate these risks. NT Emerging Market's performance may be affected by investments in initial public offerings (IPOs). The impact of IPOs on a fund's performance depends on the strength of the IPO market and the size of the fund. IPOs may have less impact on a fund's performance as its assets grow. 7. FEDERAL TAX INFORMATION The tax character of distributions paid during the year ended November 30, 2007 and the period May 12, 2006 (fund inception) through November 30, 2006 were as follows: NT International Growth NT Emerging Markets 2007 2006 2007 2006 DISTRIBUTIONS PAID FROM Ordinary income $138,053 -- $132,946 -- Long-term capital gains -- -- -- -- 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 November 30, 2007, the components of distributable earnings on a tax-basis and the federal tax cost of investments were as follows: NT International NT Emerging Growth Markets Federal tax cost of investments $58,648,867 $22,613,143 =========== =========== Gross tax appreciation of investments $13,140,633 $7,629,439 Gross tax depreciation of investments (617,795) (294,462) ----------- ----------- Net tax appreciation (depreciation) of investments $12,522,838 $7,334,977 =========== =========== Net tax appreciation (depreciation) on translation of assets and liabilities in foreign currencies $(45,961) $(81,208) ----------- ----------- Net tax appreciation (depreciation) $12,476,877 $7,253,769 =========== =========== Undistributed ordinary income $1,138,429 $2,306,135 Accumulated long-term gains $864,531 $1,821,253 Capital loss deferrals $(61,065) -- Currency loss deferrals -- $(4,715) - ------ 24 The difference between book-basis and tax-basis cost and unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains on certain forward foreign currency contracts and on investments in passive foreign investment companies. The capital and currency loss deferrals listed on the previous page for the funds represent net capital and foreign currency losses incurred in the one-month period ended November 30, 2007. The funds have elected to treat such losses as having been incurred in the following fiscal year for federal income tax purposes. 8. RECENTLY ISSUED ACCOUNTING STANDARDS In June 2006, the Financial Accounting Standards Board (FASB) issued Interpretation No. 48, "Accounting for Uncertainty in Income Taxes -- an Interpretation of FASB Statement No. 109" (FIN 48). FIN 48 establishes a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. FIN 48 is effective for fiscal years beginning after December 15, 2006, and is to be applied to all open tax years as of the date of effectiveness. Management has concluded that the adoption of FIN 48 will not materially impact the financial statements. The FASB issued Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157), in September 2006, which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands the required financial statement disclosures about fair value measurements. Management is currently evaluating the impact that adopting FAS 157 will have on the financial statement disclosures. 9. OTHER TAX INFORMATION (UNAUDITED) The following information is provided pursuant to provisions of the Internal Revenue Code. The funds hereby designate up to the maximum amount allowable as qualified dividend income for the fiscal year ended November 30, 2007. For corporate taxpayers, the ordinary income distributions paid during the fiscal year ended November 30, 2007, qualify for the corporate dividends received deduction as follows: NT International Growth NT Emerging Markets $2,944 -- As of November 30, 2007, the funds designate the following as a foreign tax credit, which represents taxes paid on income derived from sources within foreign countries or possessions of the United States. NT International Growth NT Emerging Markets $86,311 $20,951 - ------ 25 FINANCIAL HIGHLIGHTS NT International Growth For a Share Outstanding Throughout the Years Ended November 30 (except as noted) 2007 2006(1) PER-SHARE DATA Net Asset Value, Beginning of Period $10.34 $10.00 -------- -------- Income From Investment Operations Net Investment Income (Loss) 0.12 0.03 Net Realized and Unrealized Gain (Loss) 2.29 0.31 -------- -------- Total From Investment Operations 2.41 0.34 -------- -------- Distributions From Net Investment Income (0.03) -- -------- -------- Net Asset Value, End of Period $12.72 $10.34 ======== ======== TOTAL RETURN(2) 23.40% 3.40% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.07% 1.07%(3) Ratio of Net Investment Income (Loss) to Average Net Assets 1.15% 0.59%(3) Portfolio Turnover Rate 104% 65% Net Assets, End of Period (in thousands) $67,703 $46,380 (1) May 12, 2006 (fund inception) through November 30, 2006. (2) Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. (3) Annualized. See Notes to Financial Statements. - ------ 26 NT Emerging Markets For a Share Outstanding Throughout the Years Ended November 30 (except as noted) 2007 2006(1) PER-SHARE DATA Net Asset Value, Beginning of Period $11.01 $10.00 ------- ------- Income From Investment Operations Net Investment Income (Loss) 0.15 0.07 Net Realized and Unrealized Gain (Loss) 5.12 0.94 ------- ------- Total From Investment Operations 5.27 1.01 ------- ------- Distributions From Net Investment Income (0.09) - ------- ------- Net Asset Value, End of Period $16.19 $11.01 ======= ======= TOTAL RETURN(2) 48.22% 10.10% RATIOS/SUPPLEMENTAL DATA Ratio of Operating Expenses to Average Net Assets 1.46% 1.60%(3) Ratio of Net Investment Income (Loss) to Average Net Assets 1.12% 1.68%(3) Portfolio Turnover Rate 113% 59% Net Assets, End of Period (in thousands) $28,378 $19,844 (1) May 12, 2006 (fund inception) through November 30, 2006. (2) Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. (3) Annualized. See Notes to Financial Statements. - ------ 27 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Shareholders, American Century World Mutual Funds, Inc.: We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of NT International Growth Fund and NT Emerging Markets Fund (the "Funds"), two of the mutual funds comprising American Century World Mutual Funds, Inc., as of November 30, 2007, and the related statements of operations for the year then ended, and the statements of changes in net assets and the financial highlights for the year ended November 30, 2007 and the period May 12, 2006 (fund inception) to November 30, 2006. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2007, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective Funds of American Century World Mutual Funds, Inc. as of November 30, 2007, the results of their operations for the year then ended, and the changes in their net assets and the financial highlights for the year ended November 30, 2007 and the period May 12, 2006 (fund inception) to November 30, 2006, in conformity with accounting principles generally accepted in the United States of America. Deloitte & Touche LLP Kansas City, Missouri January 14, 2008 - ------ 28 PROXY VOTING RESULTS A special meeting of shareholders was held on July 27, 2007, to vote on the following proposal. The proposal received the required number of votes of the American Century World Mutual Funds, Inc. and was adopted. A summary of voting results is listed below the proposal. PROPOSAL: To elect nine Directors to the Board of Directors of American Century World Mutual Funds, Inc. (the proposal was voted on by all shareholders of funds issued by American Century World Mutual Funds, Inc.). James E. Stowers, Jr. For: 4,492,465,030 Withhold: 84,151,860 Abstain: 0 Broker Non-Vote: 0 Jonathan S. Thomas For: 4,496,101,969 Withhold: 80,514,921 Abstain: 0 Broker Non-Vote: 0 Thomas A. Brown For: 4,497,551,079 Withhold: 79,065,811 Abstain: 0 Broker Non-Vote: 0 Andrea C. Hall For: 4,497,808,657 Withhold: 78,808,233 Abstain: 0 Broker Non-Vote: 0 James A. Olson For: 4,497,582,906 Withhold: 79,033,984 Abstain: 0 Broker Non-Vote: 0 Donald H. Pratt For: 4,496,273,853 Withhold: 80,343,037 Abstain: 0 Broker Non-Vote: 0 Gale E. Sayers For: 4,496,553,346 Withhold: 80,063,544 Abstain: 0 Broker Non-Vote: 0 M. Jeannine Strandjord For: 4,494,879,736 Withhold: 81,737,154 Abstain: 0 Broker Non-Vote: 0 Timothy S. Webster For: 4,497,903,345 Withhold: 78,713,545 Abstain: 0 Broker Non-Vote: 0 - ------ 29 MANAGEMENT The individuals listed below serve as directors or officers of the funds. Each director serves until his or her successor is duly elected and qualified or until he or she retires. Mandatory retirement age for independent directors is 72. Those listed as interested directors are "interested" primarily by virtue of their engagement as directors and/or officers of, or ownership interest in, American Century Companies, Inc. (ACC) or its wholly owned, direct or indirect, subsidiaries, including the funds' investment advisor, American Century Global Investment Management, Inc. (ACGIM) or American Century Investment Management, Inc. (ACIM); the funds' principal underwriter, American Century Investment Services, Inc. (ACIS); and the funds' transfer agent, American Century Services, LLC (ACS). The other directors (more than three-fourths of the total number) are independent; that is, they have never been employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACGIM, ACIM, ACIS, and ACS. The directors serve in this capacity for seven registered investment companies in the American Century family of funds. All persons named as officers of the funds also serve in similar capacities for the other 14 investment companies in the American Century family of funds advised by ACIM, or ACGIM, a wholly owned subsidiary of ACIM, unless otherwise noted. Only officers with policy-making functions are listed. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. INTERESTED DIRECTORS JAMES E. STOWERS, JR., 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1924 POSITION(S) HELD WITH FUNDS: Director (since 1958) and Vice Chairman (since 2007) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Founder, Co-Chairman, Director and Controlling Shareholder, ACC; Co-Vice Chairman, ACC (January 2005 to February 2007); Chairman, ACC (January 1995 to December 2004); Director, ACIM, ACGIM, ACS, ACIS and other ACC subsidiaries NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None JONATHAN S. THOMAS, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1963 POSITION(S) HELD WITH FUNDS: Director (since 2007) and President (since 2007) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President and Chief Executive Officer, ACC (March 2007 to present); Chief Administrative Officer, ACC (February 2006 to February 2007); Executive Vice President, ACC (November 2005 to February 2007). Also serves as: President, Chief Executive Officer and Director, ACS; Executive Vice President, ACIM and ACGIM; Director, ACIM, ACGIM, ACIS and other ACC subsidiaries; Managing Director, Morgan Stanley (March 2000 to November 2005) NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 105 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None - ------ 30 INDEPENDENT DIRECTORS THOMAS A. BROWN, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1940 POSITION(S) HELD WITH FUNDS: Director (since 1980) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Member, Associated Investments, LLC (real estate investment company); Managing Member, Brown Cascade Properties, LLC (real estate investment company); Retired, Area Vice President, Applied Industrial Technologies NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None ANDREA C. HALL, PH.D., 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1945 POSITION(S) HELD WITH FUNDS: Director (since 1997) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Retired, Advisor to the President, Midwest Research Institute NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None JAMES A. OLSON, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1942 POSITION(S) HELD WITH FUNDS: Director (since 2007) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Member, Plaza Belmont LLC; Chief Financial Officer, Plaza Belmont LLC (September 1999 to September 2006) NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: Director, Saia, Inc. and Entertainment Properties Trust DONALD H. PRATT, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1937 POSITION(S) HELD WITH FUNDS: Director (since 1995) and Chairman of the Board (since 2005) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chairman and Chief Executive Officer, Western Investments, Inc.; Retired Chairman of the Board, Butler Manufacturing Company NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None GALE E. SAYERS, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1943 POSITION(S) HELD WITH FUNDS: Director (since 2000) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President, Chief Executive Officer and Founder, Sayers40, Inc., a technology products and services provider NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None M. JEANNINE STRANDJORD, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1945 POSITION(S) HELD WITH FUNDS: Director (since 1994) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Retired, formerly Senior Vice President, Sprint Corporation NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: Director, DST Systems, Inc.; Director, Euronet Worldwide, Inc.; Director, Charming Shoppes, Inc. - ------ 31 TIMOTHY S. WEBSTER, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1961 POSITION(S) HELD WITH FUNDS: Director (since 2001) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Director, TDB Acquisition Group LLC (September 2006 to present); Founder and Principal, Growth Consulting and Investments LLC (November 2007 to present); President and Chief Executive Officer, American Italian Pasta Company (2001 to December 2005) NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66 OTHER DIRECTORSHIPS HELD BY DIRECTOR: None OFFICERS BARRY FINK, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1955 POSITION(S) HELD WITH FUND: Executive Vice President (since 2007) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Operating Officer and Executive Vice President, ACC (September 2007 to present); President, ACS LLC (October 2007 to present); Managing Director, Morgan Stanley (2000 to 2007); Global General Counsel, Morgan Stanley (2000 to 2006). Also serves as: Director, ACC, ACS, ACIS and other ACC subsidiaries MARYANNE ROEPKE, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1956 POSITION(S) HELD WITH FUNDS: Chief Compliance Officer (since 2006) and Senior Vice President (since 2000) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Compliance Officer, ACIM, ACGIM and ACS (August 2006 to present); Assistant Treasurer, ACC (January 1995 to August 2006); and Treasurer and Chief Financial Officer, various American Century funds (July 2000 to August 2006). Also serves as: Senior Vice President, ACS CHARLES A. ETHERINGTON, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1957 POSITION(S) HELD WITH FUNDS: General Counsel (since 2007) and Senior Vice President (since 2006) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Attorney, ACC (February 1994 to present); Vice President, ACC (November 2005 to present); General Counsel, ACC (March 2007 to present). Also serves as: General Counsel, ACIM, ACGIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM, ACGIM and ACS ROBERT LEACH, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1966 POSITION(S) HELD WITH FUNDS: Vice President, Treasurer and Chief Financial Officer (all since 2006) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President, ACS (February 2000 to present) and Controller, various American Century funds (1997 to September 2006) JON ZINDEL, 4500 Main Street, Kansas City, MO 64111 YEAR OF BIRTH: 1967 POSITION(S) HELD WITH FUNDS: Tax Officer (since 1998) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Financial Officer and Chief Accounting Officer, ACC (March 2007 to present); Vice President, ACC (October 2001 to present); Vice President, certain ACC subsidiaries (October 2001 to August 2006); Vice President, Corporate Tax, ACS (April 1998 to August 2006). Also serves as: Chief Financial Officer, Chief Accounting Officer and Senior Vice President, ACIM, ACGIM, ACS and other ACC subsidiaries; and Chief Accounting Officer and Senior Vice President, ACIS The SAI has additional information about the funds' directors and is available without charge, upon request, by calling 1-800-345-2021. - ------ 32 ADDITIONAL INFORMATION RETIREMENT ACCOUNT INFORMATION As required by law, any distributions you receive from an IRA or certain 403(b), 457 and qualified plans [those not eligible for rollover to an IRA or to another qualified plan] 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. Even if you plan to roll over the amount you withdraw to another tax-deferred account, the withholding rate still applies to the withdrawn amount unless we have received notice not to withhold federal income tax prior to the withdrawal. You may notify us in writing or in certain situations by telephone or through other electronic means. You have the right to revoke your withholding election at any time and any election you make may remain in effect until revoked by filing a new election. Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don't have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld. State taxes will be withheld from your distribution in accordance with the respective state rules. PROXY VOTING GUIDELINES American Century Global Investment Management, Inc., the funds' investment advisor, is responsible for exercising the voting rights associated with the securities purchased and/or held by the funds. A description of the policies and procedures the advisor uses in fulfilling this responsibility is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century's website at americancentury.com and on the Securities and Exchange Commission's website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov. QUARTERLY PORTFOLIO DISCLOSURE The funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The funds' Forms N-Q are available on the SEC's website at sec.gov, and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The funds also make their complete schedule of portfolio holdings for the most recent quarter of their fiscal year available on their website at americancentury.com and, upon request, by calling 1-800-345-2021. - ------ 33 INDEX DEFINITIONS The following indices are used to illustrate investment market, sector, or style performance or to serve as fund performance comparisons. They are not investment products available for purchase. Morgan Stanley Capital International (MSCI) has developed several indices that measure the performance of foreign stock markets. The MSCI EAFE® (Europe, Australasia, Far East) INDEX is designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI EAFE® GROWTH INDEX is a capitalization-weighted index that monitors the performance of growth stocks from Europe, Australasia, and the Far East. The MSCI EAFE® VALUE INDEX is a capitalization-weighted index that monitors the performance of value stocks from Europe, Australasia, and the Far East. The MSCI EM (Emerging Markets) INDEX represents the net performance of stocks in global emerging market countries. The MSCI EUROPE INDEX is designed to measure equity market performance in Europe. The MSCI JAPAN INDEX is designed to measure equity market performance in Japan. The MSCI WORLD FREE INDEX represents the performance of stocks in developed countries (including the United States) that are available for purchase by global investors. - ------ 34 NOTES - ------ 35 NOTES - ------ 36 CONTACT US AMERICANCENTURY.COM AUTOMATED INFORMATION LINE: 1-800-345-8765 INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021 or 816-531-5575 BUSINESS, NOT-FOR-PROFIT, EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533 BANKS AND TRUST COMPANIES, BROKER-DEALERS, FINANCIAL PROFESSIONALS, INSURANCE COMPANIES: 1-800-345-6488 TELECOMMUNICATIONS DEVICE FOR THE DEAF: 1-800-634-4113 or 816-444-3485 AMERICAN CENTURY WORLD MUTUAL FUNDS, INC. INVESTMENT ADVISOR: American Century Global Investment Management, Inc. New York, New York THIS REPORT AND THE STATEMENTS IT CONTAINS ARE SUBMITTED FOR THE GENERAL INFORMATION OF OUR SHAREHOLDERS. THE REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. American Century Investment Services, Inc., Distributor ©2008 American Century Proprietary Holdings, Inc. All rights reserved. The American Century Investments logo, American Century and American Century Investments are service marks of American Century Proprietary Holdings, Inc. 0801 SH-ANN-57978N
ITEM 2. CODE OF ETHICS. a. The registrant has adopted a Code of Ethics for Senior Financial Officers that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer, and persons performing similar functions. b. No response required. c. None. d. None. e. Not applicable. f. The registrant's Code of Ethics for Senior Financial Officers was filed as Exhibit 12 (a)(1) to American Century Asset Allocation Portfolios, Inc.'s Annual Certified Shareholder Report on Form N-CSR, File No. 811-21591, on September 29, 2005, and is incorporated herein by reference. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. (a)(1) The registrant's board has determined that the registrant has at least one audit committee financial expert serving on its audit committee. (a)(2) Donald H. Pratt, Thomas A. Brown, Timothy S. Webster and Gale E. Sayers are the registrant's designated audit committee financial experts. They are "independent" as defined in Item 3 of Form N-CSR. (a)(3) Not applicable. (b) No response required. (c) No response required. (d) No response required. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) Audit Fees. The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were as follows: FY 2006: $202,398 FY 2007: $236,908 (b) Audit-Related Fees. The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item were as follows: For services rendered to the registrant: FY 2006: $0 FY 2007: $0 Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X (relating to certain engagements for non-audit services with the registrant's investment adviser and its affiliates): FY 2006: $0 FY 2007: $0 (c) Tax Fees. The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were as follows: For services rendered to the registrant: FY 2006: $32,267 FY 2007: $ 3,941 These services included review of federal and state income tax forms and federal excise tax forms related to fiscal year end 2006, of which some of the 2006 fiscal year end services were received in 2007. Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X (relating to certain engagements for non-audit services with the registrant's investment adviser and its affiliates): FY 2006: $0 FY 2007: $0 (d) All Other Fees. The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item were as follows: For services rendered to the registrant: FY 2006: $0 FY 2007: $0 Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X (relating to certain engagements for non-audit services with the registrant's investment adviser and its affiliates): FY 2006: $0 FY 2007: $0 (e)(1) In accordance with paragraph (c)(7)(i)(A) of Rule 2-01 of Regulation S-X, before the accountant is engaged by the registrant to render audit or non-audit services, the engagement is approved by the registrant's audit committee. Pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, the registrant's audit committee also pre-approves its accountant's engagements for non-audit services with the registrant's investment adviser, its parent company, and any entity controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, if the engagement relates directly to the operations and financial reporting of the registrant. (e)(2) All services described in each of paragraphs (b) through (d) of this Item were pre-approved before the engagement by the registrant's audit committee pursuant to paragraph (c)(7)(i)(A) of Rule 2-01 of Regulation S-X. Consequently, none of such services were required to be approved by the audit committee pursuant to paragraph (c)(7)(i)(C). (f) The percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was less than 50%. (g) The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant were as follows: FY 2006: $201,504 FY 2007: $160,804 (h) The registrant's investment adviser and accountant have notified the registrant's audit committee of all non-audit services that were rendered by the registrant's accountant to the registrant's investment adviser, its parent company, and any entity controlled by, or under common control with the investment adviser that provides services to the registrant, which services were not required to be pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X. The notification provided to the registrant's audit committee included sufficient details regarding such services to allow the registrant's audit committee to consider the continuing independence of its principal accountant. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS. The schedule of investments is included as part of the report to stockholders filed under Item 1 of this Form. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. During the reporting period, there were no material changes to the procedures by which shareholders may recommend nominees to the registrant's board. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report. (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) Registrant's Code of Ethics for Senior Financial Officers, which is the subject of the disclosure required by Item 2 of Form N-CSR, was filed as Exhibit 12(a)(1) to American Century Asset Allocation Portfolios, Inc.'s Certified Shareholder Report on Form N-CSR, File No. 811-21591, on September 29, 2005. (a)(2) Separate certifications by the registrant's principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are filed and attached hereto as Exhibit 99.302CERT. (a)(3) Not applicable. (b) A certification by the registrant's chief executive officer and chief financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, is furnished and attached hereto as Exhibit 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 WORLD MUTUAL FUNDS, INC. By: /s/ Jonathan S. Thomas ------------------------------------ Name: Jonathan S. Thomas Title: President Date: January 6, 2008 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Jonathan S. Thomas ------------------------------------- Name: Jonathan S. Thomas Title: President (principal executive officer) Date: January 6, 2008 By: /s/ Robert J. Leach ------------------------------------- Name: Robert J. Leach Title: Vice President, Treasurer, and Chief Financial Officer (principal financial officer) Date: January 6, 2008