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 | 811-06247 | |||||
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: | 05-31-09 |
ITEM 1. REPORTS TO STOCKHOLDERS.
Semiannual Report |
May 31, 2009 |
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65838x1x1.jpg)
American Century Investments |
International Growth Fund
Global Growth Fund
Emerging Markets Fund
International Value Fund
Global Growth Fund
Emerging Markets Fund
International Value Fund
Prospectus Supplement Enclosed
President’s Letter |
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Dear Investor:
Thank you for investing with us during the financial reporting period ended May 31, 2009. We appreciate your trust in American Century Investments® during these challenging times.
The U.S. economy continued to struggle at the close of the reporting period, part of the lingering fallout from the subprime-initiated credit and financial crises and global recession that shook the capital markets during the past two years. The recession has affected everyone—from first-time individual investors to hundred-year-old financial institutions.
However, as we mark the second anniversary of the start of the subprime mortgage meltdown, the worst of the economic and financial market obstacles appear to be behind us. The rate of U.S. economic decline has slowed, as have the drop-offs in housing prices and jobs. Risk appetites returned to the markets in recent months, evidenced by the strong stock rebound since early March.
Risk was a predominant theme during the reporting period, as the investment pendulum swung from risk avoidance to risk acceptance. We believe, however, that caution and risk management are still advisable. We don’t think we’re out of the economic woods yet, not with mortgage and corporate default rates on the rise, housing prices still declining, and job losses still mounting.
Effective risk management requires a commitment to disciplined investment approaches that balance risk and reward, with the goal of setting and maintaining risk levels that are appropriate for portfolio objectives. At American Century Investments, we’ve stayed true to the principles that have guided us for over 50 years, including our commitment to delivering superior investment performance and helping investors reach their financial goals. Risk management is part of that commitment—we offer portfolios that can help diversify and stabilize investment returns.
The coming months will likely present additional challenges, but I’m certain that we have the investment professionals and processes in place to provide competitive and compelling long-term results for you. Thank you for your continued confidence in us.
Sincerely,
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65838x2x2.jpg)
Jonathan S. Thomas
President and Chief Executive Officer
American Century Investments
President and Chief Executive Officer
American Century Investments
Independent Chairman’s Letter |
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I am Don Pratt, an independent director and chairman of the mutual fund board responsible for the U.S. Growth Equity, U.S. Value Equity, Global and Non-U.S. Equity and Asset Allocation funds managed by American Century Investments. The board consists of seven independent directors and two directors who are affiliated with the investment advisor.
As one of your independent shareholder representatives on the fund board, I plan to write you from time to time with updates on board activities and news about your funds. My co-independent directors and I are committed to putting your interests first. We work closely with American Century Investments on maintaining strong fund performance, providing quality service to shareholders at competitive fees and ensuring ethical business practices and compliance with all applicable fund regulations.
Last year, the board welcomed its newest independent director, John R. Whitten. He is a great addition to an experienced board where, collectively, the independent directors have served the funds for more than 76 years. This continuity served shareholders well as the investment advisor initiated a successful management transition, creating a strong senior leadership team consisting of well-tenured company executives and experienced industry veterans. Under the leadership of President and Chief Executive Officer Jonathan Thomas and Chief Investment Officer Enrique Chang, the firm has made the achievement of superior investment performance its primary focus and the key driver of its success going forward. This focus helped the company generate strong relative performance against the backdrop of 2008’s unprecedented market volatility.
As investors in the American Century funds, my fellow directors and I share your investing experience. We know firsthand how decisions made at the board level affect all shareholders. To further guide our efforts on your behalf, I invite you to send me your comments, questions or suggestions by email to dhpratt@fundboardchair.com. Thank you for allowing me to serve as your advocate on our board.
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Table of Contents |
Market Perspective | 2 |
International Equity Total Returns | 2 |
International Growth | |
Performance | 3 |
Portfolio Commentary | 5 |
Top Ten Holdings, Types of Investments in Portfolio | |
and Investments by Country | 7 |
Global Growth | |
Performance | 8 |
Portfolio Commentary | 10 |
Top Ten Holdings, Types of Investments in Portfolio | |
and Investments by Country | 12 |
Emerging Markets | |
Performance | 13 |
Portfolio Commentary | 15 |
Top Ten Holdings, Types of Investments in Portfolio | |
and Investments by Country | 17 |
International Value | |
Performance | 18 |
Portfolio Commentary | 20 |
Top Ten Holdings, Types of Investments in Portfolio | |
and Investments by Country | 22 |
Shareholder Fee Examples | 23 |
Financial Statements | |
Schedule of Investments | 26 |
Statement of Assets and Liabilities | 37 |
Statement of Operations | 39 |
Statement of Changes in Net Assets | 40 |
Notes to Financial Statements | 42 |
Financial Highlights | 54 |
Other Information | |
Additional Information | 78 |
Index Definitions | 79 |
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 Investments or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Market Perspective |
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65838x6x1.jpg)
By Mark Kopinski, Chief Investment Officer, Global and Non-U.S. Equity
Stock Performance Made a U-Turn
The global economic slowdown and ongoing credit crisis weighed heavily on the world’s equity markets for the first half of the period, as import and export volumes plummeted, industrial output shrank, and unemployment soared. As a result, stocks remained on the downward track triggered by last fall’s near-collapse of the global financial system.
Midway through the period, however, investor confidence and stock market performance showed an abrupt and surprising rebound. After hitting multi-year lows on March 9, global stocks rallied sharply to finish the six-month period with strong gains. The rebound was triggered by a belief that the global financial system was no longer in imminent danger of collapse.
Prominent central banks, including those in the United States, United Kingdom, and Japan, helped steady investor confidence by launching debt-purchase programs aimed at taming interest rates. Additionally, easy monetary and fiscal policies, including $2.1 trillion in stimulus programs targeting infrastructure development and consumer demand, contributed to improved investor sentiment. Nevertheless, GDP growth remained negative. Shrinking exports weighed on Germany’s economy, where manufacturing output sagged and the unemployment rate climbed. Likewise, reduced output and a deteriorating jobs environment darkened economic prospects for France and the United Kingdom, suggesting an uneven recovery at best.
Emerging Markets Gained as “Riskier” Assets Returned to Favor
With renewed confidence in equities, investors shifted funds toward assets considered “riskier.” Additionally, an uptick in commodity prices coupled with monetary and fiscal stimulus provided support to domestic growth in these economies. As a result, emerging equities performed exceptionally well, reversing some of last year’s significant declines. In China, optimism about the country’s large domestic-oriented stimulus plan helped propel the Shanghai Composite higher, even as declining global export levels remained a concern.
Economic growth seems likely to improve in the second half of the year. However, the economic recovery may not be as robust as the financial markets have discounted. A tug of war between bulls and bears may best characterize the second half of the year.
International Equity Total Returns | ||||
For the six months ended May 31, 2009 (in U.S. dollars)* | ||||
MSCI EM Index (Net) | 48.62% | MSCI EAFE Index | 15.10% | |
MSCI EM Growth Index | 48.09% | MSCI World Free Index | 10.26% | |
MSCI EAFE Growth Index | 13.26% | MSCI EAFE Value Index | 16.96% | |
MSCI Europe Index | 14.90% | MSCI Japan Index | 9.01% | |
*Total returns for periods less than one year are not annualized. |
2
Performance | ||||||
International Growth | ||||||
Total Returns as of May 31, 2009 | ||||||
Average Annual Returns | ||||||
Since | Inception | |||||
6 months(1) | 1 year | 5 years | 10 years | Inception | Date | |
Investor Class | 15.05% | -39.24% | 2.50% | 1.57% | 7.00% | 5/9/91 |
MSCI EAFE Index | 15.10% | -36.61% | 2.87% | 1.62% | 4.45%(2) | — |
MSCI EAFE Growth Index | 13.26% | -38.12% | 2.47% | -0.20% | 2.65%(2) | — |
Institutional Class | 15.09% | -39.15% | 2.71% | 1.78% | 3.51% | 11/20/97 |
A Class(3) | 10/2/96 | |||||
No sales charge* | 14.82% | -39.45% | 2.24% | 1.30% | 4.45% | |
With sales charge* | 8.29% | -42.91% | 1.03% | 0.71% | 3.96% | |
B Class | 1/31/03 | |||||
No sales charge* | 14.47% | -39.82% | 1.48% | — | 5.59% | |
With sales charge* | 9.47% | -43.82% | 1.29% | — | 5.59% | |
C Class | 6/4/01 | |||||
No sales charge* | 14.41% | -39.88% | 1.46% | — | -0.85% | |
With sales charge* | 13.41% | -39.88% | 1.46% | — | -0.85% | |
R Class | 14.83% | -39.53% | 2.02% | — | 4.25% | 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%. The SEC requires that | |
mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied. | |
(1) | Total returns for periods less than one year are not annualized. |
(2) | Since 4/30/91, the date nearest the Investor Class’s inception for which data are available. |
(3) | Prior to December 3, 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 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 |
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65838x8x1.jpg)
One-Year Returns Over 10 Years | ||||||||||
Periods ended May 31 | ||||||||||
2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | |
Investor Class | 48.27% | -22.48% | -13.34% | -15.25% | 22.36% | 10.36% | 26.80% | 26.71% | 5.05% | -39.24% |
MSCI EAFE Index | 17.14% | -17.23% | -9.60% | -12.30% | 32.66% | 14.62% | 28.24% | 26.84% | -2.53% | -36.61% |
MSCI EAFE | ||||||||||
Growth Index | 20.82% | -27.39% | -11.58% | -11.92% | 27.01% | 11.88% | 26.83% | 25.13% | 2.83% | -38.12% |
Total Annual Fund Operating Expenses | ||||||||||
Institutional | ||||||||||
Investor Class | Class | A Class | B Class | C Class | R Class | |||||
1.41% | 1.21% | 1.66% | 2.41% | 2.41% | 1.91% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. 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 Raj Gandhi
Performance Summary
The International Growth portfolio advanced 15.05%* for the six months ended May 31, 2009, compared with its benchmark, the MSCI EAFE Index, which gained 15.10%.
The reporting period began with international stocks suffering the effects of a severe global recession and financial-sector crisis. In early March, stocks plunged to new current-cycle lows, as rising unemployment, shrinking industrial output, and negative economic growth rates sent investor confidence tumbling. Market sentiment and performance reversed course quickly, though, as the numerous and unprecedented actions from global central banks and governments sparked optimism among investors. As a result, stocks rebounded sharply in the second half of the reporting period, to finish the six months with solid gains.
On an absolute basis, all sectors and nearly every country represented in the portfolio and benchmark posted positive returns for the six-month period. Sector allocations accounted for the portfolio’s slight underperformance relative to the benchmark.
Germany Led Detractors; Italy Topped Contributors
From a regional perspective, the portfolio’s holdings in Germany detracted the most from relative results, followed by positions in France and Sweden. Stock selection was the culprit in Germany and France, while an underweight hurt relative performance in Sweden.
At the opposite end of the performance spectrum, Italy, followed by portfolio-only positions in Canada and South Korea, made the greatest contributions to relative performance. Canada’s Research In Motion (RIM), the developer of the BlackBerry wireless device, was the portfolio’s top performer for the period. Sales of the company’s touch-screen BlackBerry Storm device, RIM’s answer to Apple’s iPhone, gained traction after RIM resolved several software issues. Within our allocation to South Korea, automaker Hyundai Motor Co. drove results.
Materials Sector Lagged
The materials sector represented the portfolio’s largest performance detractor. Our underweight combined with negative stock selection in the metals and mining industry accounted for the bulk of the sector’s under-performance. Although our overweight to the consumer discretionary sector yielded positive performance, our stock selection—particularly in the textiles, apparel, and luxury goods segment—led to overall lagging results on a relative basis.
*All fund returns referenced in this commentary are for Investor Class shares. Total returns for periods less than one year are not annualized.
5
International Growth
The portfolio’s health care sector also detracted from performance, primarily due to an overweight in the biotechnology industry and in the health care providers and services segment. In particular, our overweight positions in Switzerland-based Actelion Ltd., a biopharmaceutical company, and Germany’s Fresenius Medical Care, a provider of dialysis products and services, hurt results.
Technology, Energy Outperform
The top contributors to the portfolio’s relative performance included the information technology and energy sectors. The outperformance primarily was due to stock selection, but our allocations (overweight technology, underweight energy) also helped. In addition to the strong results from RIM, the portfolio benefited from good stock selection in the internet software and services and computer and peripherals areas.
After falling in the first half of the reporting period, oil prices skyrocketed later in the six-month period, and this helped push select energy stocks higher. Our energy stocks showed strong results, led by our overweighted position in Italy’s Saipem, an oil and gas services company.
Another leading portfolio performer was Belgium-based brewer Anheuser-Busch InBev. The company shored up its balance sheet by selling most of its stake in Tsingtao Brewery, one of China’s largest brewers; soliciting bids for its Oriental Brewing of South Korea; and cutting $1 billion from its capital expenditure budget.
Outlook
International Growth primarily invests in companies located in developed countries around the world (excluding the United States). Although we expect further volatility throughout the international stock markets, we will continue to focus on finding companies with sustainable growth characteristics and promising long-term outlooks.
6
International Growth | ||
Top Ten Holdings as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
ENI SpA | 1.9% | 2.2% |
Nestle SA | 1.8% | 2.1% |
Banco Santander SA | 1.8% | 1.2% |
BG Group plc | 1.8% | 2.4% |
BHP Billiton Ltd. | 1.7% | 1.1% |
Muenchener Rueckversicherungs-Gesellschaft AG | 1.6% | 1.6% |
Saipem SpA | 1.6% | 1.2% |
iShares MSCI Japan Index Fund | 1.5% | 1.7% |
Vale SA Preference Shares | 1.5% | 0.8% |
Koninklijke Ahold NV | 1.4% | 1.7% |
Types of Investments in Portfolio | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Foreign Common Stocks & Rights | 99.5% | 99.4% |
Temporary Cash Investments | 0.5% | 0.3% |
Other Assets and Liabilities | —(1) | 0.3% |
(1) Category is less than 0.05% of total net assets. | ||
Investments by Country as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
United Kingdom | 17.6% | 23.1% |
Japan | 14.2% | 14.4% |
Switzerland | 9.9% | 9.8% |
Germany | 6.9% | 7.2% |
France | 6.1% | 7.2% |
Italy | 5.1% | 4.0% |
Australia | 4.8% | 4.3% |
Spain | 3.4% | 4.1% |
People’s Republic of China | 3.3% | 1.1% |
South Korea | 2.9% | 0.4% |
Canada | 2.8% | 3.8% |
Brazil | 2.7% | 2.2% |
Other Countries | 19.8% | 17.8% |
Cash and Equivalents(2) | 0.5% | 0.6% |
(2) Includes temporary cash investments and other assets and liabilities. |
7
Performance |
Global Growth | |||||||
Total Returns as of May 31, 2009 | |||||||
Average Annual Returns | |||||||
Since | Inception | ||||||
6 months(1) | 1 year | 5 years | 10 years | Inception | Date | ||
Investor Class | 9.18% | -37.82% | 3.00% | 4.26% | 5.75% | 12/1/98 | |
MSCI World Free Index | 10.26% | -34.83% | 0.53% | -0.35% | 0.46%(2) | — | |
Institutional Class | 9.28% | -37.69% | 3.22% | — | -1.09% | 8/1/00 | |
A Class(3) | 2/5/99 | ||||||
No sales charge* | 9.12% | -37.90% | 2.74% | 4.00% | 4.48% | ||
With sales charge* | 2.92% | -41.46% | 1.53% | 3.38% | 3.89% | ||
B Class | 12/1/05 | ||||||
No sales charge* | 8.73% | -38.44% | — | — | -4.29% | ||
With sales charge* | 3.73% | -42.44% | — | — | -5.26% | ||
C Class | 3/1/02 | ||||||
No sales charge* | 8.84% | -38.41% | 2.00% | — | 2.77% | ||
With sales charge* | 7.84% | -38.41% | 2.00% | — | 2.77% | ||
R Class | 9.11% | -38.17% | — | — | -1.63% | 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%. The SEC requires that | |||||||
mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied. | |||||||
(1) | Total returns for periods less than one year are not annualized. | ||||||
(2) | Since 11/30/98, the date nearest the Investor Class’s inception for which data are available. | ||||||
(3) | 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.
8
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65838x13x1.jpg)
One-Year Returns Over 10 Years | ||||||||||
Periods ended May 31 | ||||||||||
2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | |
Investor Class | 61.77% | -15.57% | -12.17% | -13.86% | 26.69% | 12.61% | 24.97% | 24.97% | 6.00% | -37.82% |
MSCI World | ||||||||||
Free Index | 13.56% | -14.95% | -12.56% | -9.86% | 23.60% | 11.35% | 17.98% | 24.51% | -3.68% | -34.83% |
Total Annual Fund Operating Expenses | ||||||||||
Institutional | ||||||||||
Investor Class | Class | A Class | B Class | C Class | R Class | |||||
1.26% | 1.06% | 1.51% | 2.26% | 2.26% | 1.76% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. 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.
9
Portfolio Commentary |
Global Growth
Portfolio Managers: Keith Creveling and Brent Puff
Performance Summary
The Global Growth portfolio advanced 9.18%* for the six months ended May 31, 2009, underperforming its benchmark, the MSCI World Free Index, which gained 10.26%.
The reporting period began with stocks around the world suffering the effects of a severe global recession and financial-sector crisis. In early March, stocks plunged to new current-cycle lows, as rising unemployment, shrinking industrial output, and negative economic growth rates sent investor confidence tumbling. Market sentiment and performance reversed course quickly, though, as the numerous and unprecedented actions from global central banks and governments sparked optimism among investors. As a result, global stocks rebounded sharply in the second half of the reporting period, to finish the six months with solid gains.
Other than the utilities sector, every sector in the portfolio and benchmark showed positive absolute returns for the period.
Canada Led Detractors; U.S. Was Top Contributor
From a country perspective, the portfolio’s holdings in Canada, Spain, and Japan detracted the most from relative performance, primarily due to stock selection. In addition, we underweighted each country, which also detracted from relative results. Spain was home to the portfolio’s leading detractor, toll road operator Cintra Concesiones de Infraestructuras de Transporte. The company reported traffic declines on its roads in the U.S. and Spain and experienced funding complications and minority shareholder challenges when it explored a potential merger with its parent, Grupo Ferrovial of Spain.
The United States led all country contributors in the portfolio, followed by China and the United Kingdom. Performance in the United States was driven by overweight positions in Goldman Sachs Group and Apple Inc. Shares in Goldman Sachs advanced, as the investment company’s competitive environment improved and a boost in trading revenues bolstered the company’s bottom line. At computer and electronic device maker Apple, better-than-expected revenues and strong market enthusiasm for the iPhone’s extensive software update helped push the stock price higher.
Materials Stocks Lagged
Stock selection showed the greatest drag on relative results in the portfolio’s materials, consumer discretionary, and information technology sectors. In the materials sector, our stock selections combined with an underweight in the metals and mining industry hurt performance.
*All fund returns referenced in this commentary are for Investor Class shares. Total returns for periods less than one year are not annualized.
10
Global Growth
In the consumer discretionary sector, U.S.-based Apollo Group, an educational services company, tumbled on concerns about potential regulatory and legal changes from the U.S. Department of Education. An overweight to the information technology sector (the portfolio’s largest sector weighting) contributed positively to the portfolio’s performance, but stock selection, primarily in the software and IT services industries, detracted from results.
Energy Led All Sectors
A sharp upswing in oil prices during the second half of the reporting period helped generate strong returns in the energy sector. Our overweight positions in Saipem, an Italian oil and gas services company, and Southwestern Energy and Occidental Petroleum, U.S.-based oil and natural gas exploration companies, drove the portfolio’s energy-sector outperformance.
The portfolio’s utilities and telecommunication services sectors also contributed positively to relative performance. Specifically, an underweight in utilities, which was the smallest sector allocation in the portfolio, and favorable stock selection among wireless telecommunication providers helped drive results.
Outlook
Global Growth primarily invests in companies located in developed countries throughout the world, including the United States. We remain focused on identifying companies with the ability to grow sustainably over time. In the current environment, we are focused on identifying companies with sustainable growth characteristics, a management team focused on protecting profit margins, and a strong competitive position in the marketplace. Although we expect continued market volatility in the short term, we remain committed to identifying and exploiting attractive opportunities and helping our shareholders build value over time.
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Global Growth | ||
Top Ten Holdings as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Compass Group plc | 2.1% | 1.7% |
Apple, Inc. | 2.0% | 1.5% |
BG Group plc | 1.8% | 1.4% |
Colgate-Palmolive Co. | 1.8% | 1.6% |
American Tower Corp., Class A | 1.8% | 1.4% |
Occidental Petroleum Corp. | 1.8% | 1.6% |
Hewlett-Packard Co. | 1.8% | 2.1% |
BHP Billiton Ltd. | 1.8% | 1.4% |
Southwestern Energy Co. | 1.8% | 1.3% |
Goldman Sachs Group, Inc. (The) | 1.8% | — |
Types of Investments in Portfolio | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Domestic Common Stocks | 50.4% | 51.6% |
Foreign Common Stocks | 48.5% | 47.0% |
Total Equity Exposure | 98.9% | 98.6% |
Temporary Cash Investments | 0.5% | 1.4% |
Other Assets and Liabilities | 0.6% | —(1) |
(1) Category is less than 0.05% of total net assets. | ||
Investments by Country as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
United States | 50.4% | 51.6% |
United Kingdom | 9.7% | 10.5% |
Japan | 6.3% | 4.3% |
Switzerland | 4.5% | 6.0% |
Germany | 4.4% | 5.7% |
Australia | 3.3% | 3.8% |
Netherlands | 3.2% | 2.4% |
Ireland | 2.2% | 0.6% |
People’s Republic of China | 2.0% | — |
Other Countries | 12.9% | 13.7% |
Cash and Equivalents(2) | 1.1% | 1.4% |
(2) Includes temporary cash investments and other assets and liabilities. |
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Performance |
Emerging Markets | |||||||
Total Returns as of May 31, 2009 | |||||||
Average Annual Returns | |||||||
Since | Inception | ||||||
6 months(1) | 1 year | 5 years | 10 years | Inception | Date | ||
Investor Class | 38.50% | -44.86% | 11.59% | 8.44% | 5.88% | 9/30/97 | |
MSCI EM Growth Index(2)(3) | 48.09% | -37.52% | 12.60% | — | — | — | |
MSCI EM (Net) Index(2)(3) | 48.62% | -34.36% | 15.12% | 10.03% | — | — | |
MSCI EM (Gross) Index(3) | 48.86% | -34.13% | 15.50% | 10.34% | 6.44% | — | |
Institutional Class | 38.74% | -44.76% | 11.78% | 8.65% | 10.95% | 1/28/99 | |
A Class(4) | 5/12/99 | ||||||
No sales charge* | 38.71% | -44.87% | 11.36% | 8.19% | 7.88% | ||
With sales charge* | 30.69% | -48.01% | 10.03% | 7.56% | 7.24% | ||
B Class | 9/28/07 | ||||||
No sales charge* | 38.13% | -45.40% | — | — | -31.44% | ||
With sales charge* | 33.13% | -49.40% | — | — | -34.57% | ||
C Class | 12/18/01 | ||||||
No sales charge* | 38.13% | -45.35% | 10.47% | — | 10.22% | ||
With sales charge* | 37.13% | -45.35% | 10.47% | — | 10.22% | ||
R Class | 38.42% | -45.13% | — | — | -31.13% | 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%. The SEC requires that | |||||||
mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied. | |||||||
(1) | Total returns for periods less than one year are not annualized. | ||||||
(2) | MSCI EM Growth Index data first available 2/1/01. MSCI EM (Net) Index data first available 12/31/98. | ||||||
(3) | From September of 1997 through December 2008, the fund’s benchmark was the MSCI EM (Gross) Index. From January 2009 through | ||||||
March 2009, the fund’s benchmark was the MSCI EM (Net) Index. In April of 2009, the fund’s benchmark changed from the MSCI EM (Net) | |||||||
Index to the MSCI EM Growth Index. The fund’s investment advisor believes this index better represents the fund’s portfolio composition. | |||||||
(4) | 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.
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![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65838x18x1.jpg)
One-Year Returns Over 10 Years | |||||||||||
Periods ended May 31 | |||||||||||
2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | ||
Investor Class | 44.57% | -22.82% | -0.43% | -17.03% | 41.04% | 23.34% | 51.35% | 46.65% | 14.66% | -44.86% | |
MSCI EM | |||||||||||
Growth Index(1) | — | -15.45%(2) | 4.13% | -8.63% | 37.78% | 26.82% | 39.20% | 38.64% | 18.37% | -37.52% | |
MSCI EM | |||||||||||
(Net) Index | 17.64% | -21.93% | 7.03% | -6.65% | 40.10% | 30.52% | 40.41% | 38.16% | 21.67% | -34.36% | |
MSCI EM | |||||||||||
(Gross) Index | 17.75% | -21.60% | 7.28% | -6.40% | 40.48% | 30.99% | 40.90% | 38.59% | 22.00% | -34.13% | |
(1) | Since benchmark data is only available from 2/1/01, it is not included in the line chart. One year data is listed for all periods available. | ||||||||||
(2) | Benchmark return from 2/1/01 to 5/31/01. Not annualized. | ||||||||||
Total Annual Fund Operating Expenses | |||||||||||
Institutional | |||||||||||
Investor Class | Class | A Class | B Class | C Class | R Class | ||||||
1.82% | 1.62% | 2.07% | 2.82% | 2.82% | 2.32% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includesn acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. 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.
14
Portfolio Commentary |
Emerging Markets |
Portfolio Manager: Patricia Ribeiro
Performance Summary
The Emerging Markets portfolio advanced 38.50%* for the six months ended May 31, 2009, underperforming its benchmark, the MSCI Emerging Markets Growth Index, which gained 48.09%.
The global economic recession and worldwide financial crisis led to plummeting returns for emerging market stocks during the first three months of the reporting period. Then, in mid-March, optimism surrounding global governments’ efforts to battle the recession and restore credit flow and economic growth helped generate a strong worldwide stock market rally.
Emerging market stocks significantly outperformed the developed markets, which, as measured by the MSCI EAFE Index, returned 15.10% for the six-month period. In particular, rising commodity prices in the second half of the reporting period helped boost performance among the natural resources-rich developing markets.
Former Laggards Led Rally
Within the MSCI Emerging Markets Growth Index, every sector and nearly every country showed double-digit gains for the period. The strong rally that propelled stocks in the second half of the reporting period was primarily driven by former market laggards. In general, these companies outperformed even the higher-quality companies that had been reporting strong earnings growth—the type of companies we tend to favor in our portfolio. This factor accounted for the bulk of the portfolio’s performance shortfall relative to the benchmark.
Korea Led Detractors; Mexico Led Contributors
From a regional perspective, the portfolio’s largest detractors to performance included South Korea (which was among the portfolio’s four largest-weighted countries), India, and Israel. In each country, stock selection primarily accounted for the portfolio’s poor relative performance.
On the positive side, Mexico, Malaysia, and an out-of-benchmark position in Singapore represented the portfolio’s leading country contributors. Stock selection drove the portfolio’s positive relative results in Mexico, while an underweight accounted for the portfolio’s better relative performance in Malaysia.
All Sectors Showed Positive Returns
On an absolute basis, all of the portfolio’s 10 sectors posted gains for the six-month period—and other than in the health care sector, all were strong double-digit gains. Relative to the benchmark, the portfolio’s information technology, materials, and energy sectors detracted from results, while its telecommunication services and utilities sectors contributed positively to relative performance.
*All fund returns referenced in this commentary are for Investor Class shares. Total returns for periods less than one year are not annualized. |
15
Emerging Markets
Our poor relative performance in the information technology sector was primarily due to portfolio-only holding Rolta India. Stock in the India-based geospatial mapping systems company plummeted in the wake of a scandal involving Indian technology outsourcing company Satyam, which falsified its financial statements. Subsequent rumors implicated Rolta, which responded with a firm denial of any wrongdoing.
In the materials sector, our stock selection and an underweight in the metals and mining industry accounted for the bulk of the lagging results. In particular, our underweight position in Brazilian iron ore miner Companhia Vale do Rio Doce detracted from performance. The company, a leading supplier to the global steel industry, said it anticipates stable demand levels from China, a large steel producer.
The portfolio’s outperformance in the telecommunication services sector was largely due to our portfolio-only position in Vivo Participacoes, a Brazil-based wireless telecommunication provider. The company reported sharp increases in its net income, revenues, and subscriber base. Stock selection in the electric utilities industry drove the strong overall performance in the portfolio’s utilities sector. In particular, the portfolio benefited from our overweight position in India’s state-owned Power Grid Corp.
Outlook
Emerging Markets primarily invests in companies located in emerging market countries. We anticipate continued volatility throughout the global financial markets is likely. As we navigate this turbulence, we will continue to focus on finding companies we believe possess sustainable growth characteristics, including the ability to grow earnings and revenues, and promising long-term outlooks.
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Emerging Markets | ||
Top Ten Holdings as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Petroleo Brasileiro SA ADR | 4.9% | 3.4% |
Vale SA Preference Shares | 4.3% | — |
Samsung Electronics Co. Ltd. | 3.5% | 2.2% |
China Mobile Ltd. ADR | 2.6% | 3.1% |
Taiwan Semiconductor Manufacturing Co. Ltd. | 2.4% | 2.1% |
America Movil SAB de CV ADR, Series L | 2.3% | 1.2% |
OAO Gazprom ADR | 2.1% | 2.1% |
Reliance Industries Ltd. | 2.1% | — |
Itau Unibanco Banco Holding SA Preference Shares | 2.0% | — |
Hon Hai Precision Industry Co. Ltd. | 1.9% | 0.6% |
Types of Investments in Portfolio | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Foreign Common Stocks | 98.1% | 97.7% |
Temporary Cash Investments | 0.8% | 1.2% |
Other Assets and Liabilities | 1.1% | 1.1% |
Investments by Country as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Brazil | 16.8% | 12.9% |
Taiwan (Republic of China) | 13.9% | 7.1% |
People’s Republic of China | 13.7% | 15.7% |
South Korea | 11.6% | 10.6% |
India | 8.5% | 6.5% |
Russian Federation | 6.7% | 4.4% |
South Africa | 6.7% | 7.5% |
Hong Kong | 5.2% | 5.1% |
Mexico | 2.9% | 3.1% |
Other Countries | 12.1% | 24.8% |
Cash and Equivalents* | 1.9% | 2.3% |
* Includes temporary cash investments and other assets and liabilities. |
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Performance |
International Value | ||||||
Total Returns as of May 31, 2009 | ||||||
Average Annual Returns | ||||||
Since | Inception | |||||
6 months(1) | 1 year | 5 years | 10 years | Inception | Date | |
A Class | 3/31/97 | |||||
No sales charge* | 14.07% | -35.62% | 3.36%(2) | 2.63%(2) | 2.35%(2) | |
With sales charge* | 7.59% | -39.31% | 2.13%(2) | 2.02%(2) | 1.85%(2) | |
MSCI EAFE Index | 15.10% | -36.61% | 2.87% | 1.62% | 3.15% | — |
Investor Class | 14.37% | -35.44% | — | — | -5.72% | 4/3/06 |
Institutional Class | 14.38% | -35.31% | — | — | -5.56% | 4/3/06 |
B Class | 3/31/97 | |||||
No sales charge* | 13.46% | -36.12% | 2.60%(2) | 1.92%(2) | 1.65%(2) | |
With sales charge* | 8.46% | -40.12% | 2.42%(2) | 1.92%(2) | 1.65%(2) | |
C Class | 4/3/06 | |||||
No sales charge* | 13.59% | -36.14% | — | — | -6.70% | |
With sales charge* | 12.59% | -36.14% | — | — | -6.70% | |
R Class | 13.87% | -35.75% | — | — | -6.21% | 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%. 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) | Total returns for periods less than one year are not annualized. |
(2) | 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.
18
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65838x23x1.jpg)
One-Year Returns Over 10 Years | ||||||||||
Periods ended May 31 | ||||||||||
2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | |
A Class | ||||||||||
(no sales charge)** | 8.40% | -1.91% | -4.88% | -16.59% | 30.27% | 14.87% | 24.74% | 31.07% | -2.43% | -35.62% |
MSCI EAFE Index | 17.14% | -17.23% | -9.60% | -12.30% | 32.66% | 14.62% | 28.24% | 26.84% | -2.53% | -36.61% |
* 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 if fees had not been waived. | ||||||||||
Total Annual Fund Operating Expenses | ||||||||||
Institutional | ||||||||||
Investor Class | Class | A Class | B Class | C Class | R Class | |||||
1.31% | 1.11% | 1.56% | 2.31% | 2.31% | 1.81% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. 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.
19
Portfolio Commentary |
International Value |
Portfolio Managers: Gary Motyl and Guang Yang
Performance Summary
International Value returned 14.07%* for the six months ended May 31, 2009. By comparison, its benchmark, the MSCI EAFE Index, returned 15.10%.
The portfolio’s performance was indicative of a volatile period in which global financial markets generally declined through about early March, then rallied sharply to end the six months with sizable gains. In that environment, consumer discretionary shares contributed most to the portfolio’s absolute results. The fund’s utilities allocation was the only segment to detract from absolute performance in dollar terms. In terms of returns compared with the benchmark, stock selection and an underweight position meant materials shares detracted most from relative results, while holdings in the industrials sector contributed most to relative performance.
Materials Led Detractors
In the materials sector, the main source of weakness was positioning among metals and mining and paper and forest products companies. Four of the portfolio’s top-10 detractors for the six months come from these industry segments. In particular, it hurt to be underrepresented in mining conglomerates BHP Billiton and Rio Tinto, which benefited from optimism on improving global growth and a rebound from a sharp sell-off through early 2009. The two other notable detractors were overweight positions in Finnish paper-products companies UPM-Kymmene and Stora Enso Oyj. These stocks continued to struggle with issues of overcapacity, high input costs, and poor demand that have plagued the industry for some time. We like the cost and capacity cuts these firms have enacted and believe they can perform well when demand stabilizes.
Financials, Health Care Also Hurt
It also hurt relative results to be underweight financial shares, which rallied sharply since early March, and overweight health care, which lagged in the market recovery. The leading detractors were property and casualty insurer Ace Limited and Takeda Pharmaceutical, which is Japan’s largest drug maker. We consider both to be high-quality, fairly defensive-oriented shares—they held up better than the market during the sharp sell-off in 2008 and early 2009, but underperformed in the recent market rebound.
Industrials Contributed Most
The leading contribution to portfolio performance at the sector level came from stock picks in the industrials sector. The key sources of strength in the sector were overweight stakes in Shanghai Electric, Vestas Wind Systems, and Atlas Copco. Shanghai Electric is among China’s largest mechanical and electrical equipment manufacturers, and benefited from optimism on a recovery in global growth. Norwegian firm Vestas is a leading wind
* 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. Total returns for periods |
less than one year are not annualized. |
20
International Value
turbine provider well positioned to benefit from the increasing demand for alternative energy sources. Swedish manufacturer Atlas, which announced cost and capacity cuts in recent months, rallied sharply with the market beginning in March.
Other Contributors
Stock picks in the consumer discretionary and information technology sectors also helped. The top contributors in these sectors were Korean car maker Hyundai Motor Co. and Chinese battery and auto manufacturer BYD, respectively. Both are seen as benefiting from the turmoil in the U.S. auto market and demand for lower-cost, more fuel-efficient vehicles.
Outlook
“Despite the volatile market and economic conditions, we remain focused on adding what we believe to be high-quality companies trading at very attractive valuations,” said portfolio manager Guang Yang. “We believe that owning such companies will generate attractive, risk-adjusted results over time compared with our benchmark and peer group.”
“Because we build the International Value portfolio stock by stock from the bottom up, the portfolio’s sector and industry selection as well as capitalization range allocations reflect where we are finding individual securities about which we have the highest conviction at a given time,” noted Yang. “As of May 31, 2009, we found opportunity in the telecommunication services and information technology sectors, the portfolio’s largest overweight positions,” he added. “We also continued to maintain our most sizable underweight positions in the financials and consumer staples sectors.”
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International Value | ||
Top Ten Holdings as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Nintendo Co. Ltd. | 1.9% | 2.4% |
Sanofi-Aventis | 1.9% | 1.8% |
Samsung Electronics Co. Ltd. | 1.8% | 1.5% |
Telefonica SA ADR | 1.8% | 1.9% |
Novartis AG | 1.8% | 2.3% |
France Telecom SA | 1.7% | 2.0% |
Royal Dutch Shell plc, Class B | 1.6% | 1.7% |
GlaxoSmithKline plc | 1.6% | 1.8% |
DBS Group Holdings Ltd. | 1.6% | 0.9% |
HSBC Holdings plc | 1.6% | 2.1% |
Types of Investments in Portfolio | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Foreign Common Stocks & Rights | 92.9% | 91.1% |
Temporary Cash Investments | 6.4% | 8.4% |
Other Assets and Liabilities | 0.7% | 0.5% |
Investments by Country as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
United Kingdom | 16.5% | 19.1% |
France | 9.0% | 9.0% |
Germany | 8.2% | 8.5% |
Switzerland | 7.9% | 8.2% |
Japan | 6.8% | 9.2% |
Netherlands | 5.4% | 5.3% |
South Korea | 4.6% | 4.2% |
Hong Kong | 4.5% | 2.9% |
Spain | 4.5% | 4.4% |
People’s Republic of China | 3.9% | 2.3% |
Brazil | 3.2% | 1.7% |
Taiwan (Republic of China) | 2.6% | 2.3% |
Other Countries | 15.8% | 14.0% |
Cash and Equivalents* | 7.1% | 8.9% |
* Includes temporary cash investments and other assets and liabilities. |
22
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 December 1, 2008 to May 31, 2009.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or Institutional Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. We will not charge the fee as long as you choose to manage your accounts exclusively online. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical 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.
23
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses Paid | ||
Account Value | Account Value | During Period* | Annualized | |
12/1/08 | 5/31/09 | 12/1/08 – 5/31/09 | Expense Ratio* | |
International Growth | ||||
Actual | ||||
Investor Class | $1,000 | $1,150.50 | $7.56 | 1.41% |
Institutional Class | $1,000 | $1,150.90 | $6.49 | 1.21% |
A Class | $1,000 | $1,148.20 | $8.89 | 1.66% |
B Class | $1,000 | $1,144.70 | $12.89 | 2.41% |
C Class | $1,000 | $1,144.10 | $12.88 | 2.41% |
R Class | $1,000 | $1,148.30 | $10.23 | 1.91% |
Hypothetical | ||||
Investor Class | $1,000 | $1,017.90 | $7.09 | 1.41% |
Institutional Class | $1,000 | $1,018.90 | $6.09 | 1.21% |
A Class | $1,000 | $1,016.65 | $8.35 | 1.66% |
B Class | $1,000 | $1,012.91 | $12.09 | 2.41% |
C Class | $1,000 | $1,012.91 | $12.09 | 2.41% |
R Class | $1,000 | $1,015.41 | $9.60 | 1.91% |
Global Growth | ||||
Actual | ||||
Investor Class | $1,000 | $1,091.80 | $6.57 | 1.26% |
Institutional Class | $1,000 | $1,092.80 | $5.53 | 1.06% |
A Class | $1,000 | $1,091.20 | $7.87 | 1.51% |
B Class | $1,000 | $1,087.30 | $11.76 | 2.26% |
C Class | $1,000 | $1,088.40 | $11.77 | 2.26% |
R Class | $1,000 | $1,091.10 | $9.18 | 1.76% |
Hypothetical | ||||
Investor Class | $1,000 | $1,018.65 | $6.34 | 1.26% |
Institutional Class | $1,000 | $1,019.65 | $5.34 | 1.06% |
A Class | $1,000 | $1,017.40 | $7.59 | 1.51% |
B Class | $1,000 | $1,013.66 | $11.35 | 2.26% |
C Class | $1,000 | $1,013.66 | $11.35 | 2.26% |
R Class | $1,000 | $1,016.16 | $8.85 | 1.76% |
* 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 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. |
24
Beginning | Ending | Expenses Paid | ||
Account Value | Account Value | During Period* | Annualized | |
12/1/08 | 5/31/09 | 12/1/08 – 5/31/09 | Expense Ratio* | |
Emerging Markets | ||||
Actual | ||||
Investor Class | $1,000 | $1,385.00 | $10.76 | 1.81% |
Institutional Class | $1,000 | $1,387.40 | $9.58 | 1.61% |
A Class | $1,000 | $1,387.10 | $12.26 | 2.06% |
B Class | $1,000 | $1,381.30 | $16.68 | 2.81% |
C Class | $1,000 | $1,381.30 | $16.68 | 2.81% |
R Class | $1,000 | $1,384.20 | $13.73 | 2.31% |
Hypothetical | ||||
Investor Class | $1,000 | $1,015.91 | $9.10 | 1.81% |
Institutional Class | $1,000 | $1,016.90 | $8.10 | 1.61% |
A Class | $1,000 | $1,014.66 | $10.35 | 2.06% |
B Class | $1,000 | $1,010.92 | $14.09 | 2.81% |
C Class | $1,000 | $1,010.92 | $14.09 | 2.81% |
R Class | $1,000 | $1,013.41 | $11.60 | 2.31% |
International Value | ||||
Actual | ||||
Investor Class | $1,000 | $1,143.70 | $6.95 | 1.30% |
Institutional Class | $1,000 | $1,143.80 | $5.88 | 1.10% |
A Class | $1,000 | $1,140.70 | $8.27 | 1.55% |
B Class | $1,000 | $1,134.60 | $12.24 | 2.30% |
C Class | $1,000 | $1,135.90 | $12.25 | 2.30% |
R Class | $1,000 | $1,138.70 | $9.60 | 1.80% |
Hypothetical | ||||
Investor Class | $1,000 | $1,018.45 | $6.54 | 1.30% |
Institutional Class | $1,000 | $1,019.45 | $5.54 | 1.10% |
A Class | $1,000 | $1,017.20 | $7.80 | 1.55% |
B Class | $1,000 | $1,013.46 | $11.55 | 2.30% |
C Class | $1,000 | $1,013.46 | $11.55 | 2.30% |
R Class | $1,000 | $1,015.96 | $9.05 | 1.80% |
* 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 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. |
25
Schedule of Investments |
International Growth |
MAY 31, 2009 (UNAUDITED) | ||||||
Shares | Value | Shares | Value | |||
Common Stocks — 99.5% | LVMH Moet Hennessy | |||||
Louis Vuitton SA | 39,820 | $ 3,310,475 | ||||
AUSTRALIA — 4.8% | Publicis Groupe | 104,580 | 3,395,598 | |||
BHP Billiton Ltd. | 793,564 | $ 22,294,517 | Total SA | 329,256 | 19,058,499 | |
Commonwealth | 80,986,316 | |||||
Bank of Australia | 279,210 | 7,935,846 | ||||
CSL Ltd. | 571,362 | 13,379,710 | GERMANY — 6.9% | |||
Origin Energy Ltd. | 498,010 | 5,911,307 | Allianz SE | 87,320 | 8,608,052 | |
Rio Tinto Ltd. | 115,034 | 6,006,809 | BASF SE | 283,290 | 11,963,280 | |
Wesfarmers Ltd. | 474,640 | 8,150,958 | Bayer AG | 98,950 | 5,634,379 | |
63,679,147 | Daimler AG | 152,700 | 5,600,363 | |||
BELGIUM — 1.2% | Deutsche Boerse AG | 149,760 | 13,075,602 | |||
Fresenius Medical | ||||||
Anheuser-Busch InBev NV | 457,077 | 16,155,379 | Care AG & Co. KGaA | 315,663 | 13,230,438 | |
BERMUDA — 0.3% | Muenchener | |||||
Seadrill Ltd. | 269,140 | 3,955,440 | Rueckversicherungs- | |||
BRAZIL — 2.7% | Gesellschaft AG | 150,080 | 21,057,594 | |||
Vale SA Preference Shares | 1,204,000 | 19,868,815 | SAP AG | 178,220 | 7,672,440 | |
Petroleo Brasileiro SA ADR | 179,930 | 7,922,318 | Wacker Chemie AG | 42,310 | 5,296,193 | |
Redecard SA | 565,700 | 8,165,216 | 92,138,341 | |||
35,956,349 | GREECE — 1.3% | |||||
CANADA — 2.8% | National Bank | |||||
Canadian National | of Greece SA(1) | 626,201 | 17,331,515 | |||
Railway Co. | 229,150 | 9,862,843 | HONG KONG — 1.2% | |||
EnCana Corp. | 154,514 | 8,564,711 | Hang Seng Bank Ltd. | 205,300 | 2,950,140 | |
Precision Drilling Trust | 240,480 | 1,407,527 | Li & Fung Ltd. | 2,098,000 | 5,645,001 | |
Research In Motion Ltd.(1) | 222,640 | 17,508,409 | Link Real Estate | |||
37,343,490 | Investment Trust (The) | 3,909,000 | 7,688,865 | |||
CZECH REPUBLIC — 0.2% | 16,284,006 | |||||
CEZ AS | 72,340 | 3,268,198 | INDIA — 1.3% | |||
DENMARK — 1.7% | Housing Development | |||||
Finance Corp. Ltd. | 90,848 | 4,208,544 | ||||
Novo Nordisk A/S B Shares | 231,099 | 12,034,037 | ICICI Bank Ltd. ADR | 185,880 | 5,788,303 | |
Vestas Wind Systems A/S(1) | 145,980 | 10,682,286 | ||||
22,716,323 | Larsen & Toubro Ltd. | 230,300 | 6,862,543 | |||
16,859,390 | ||||||
FINLAND — 0.6% | INDONESIA — 0.1% | |||||
Nokia Oyj | 480,620 | 7,361,285 | PT Bank Rakyat Indonesia | 3,307,000 | 2,019,144 | |
FRANCE — 6.1% | IRELAND — 2.4% | |||||
Air Liquide SA | 95,170 | 8,852,845 | CRH plc | 380,722 | 9,017,270 | |
ALSTOM SA | 75,410 | 4,790,220 | Experian plc | 1,945,850 | 14,409,077 | |
BNP Paribas | 237,230 | 16,493,082 | Ryanair Holdings plc ADR(1) | 274,314 | 7,988,024 | |
Cie Generale des | 31,414,371 | |||||
Etablissements Michelin, | ||||||
Class B | 178,920 | 10,881,871 | ISRAEL — 0.9% | |||
Cie Generale d’Optique | Teva Pharmaceutical | |||||
Essilor International SA | 71,550 | 3,296,155 | Industries Ltd. ADR | 257,620 | 11,943,263 | |
Danone SA | 90,608 | 4,514,736 | ITALY — 5.1% | |||
Legrand SA(1) | 301,830 | 6,392,835 | ENI SpA | 1,038,969 | 25,151,105 | |
Intesa Sanpaolo SpA(1) | 3,387,160 | 12,253,007 |
26
International Growth | ||||||
Shares | Value | Shares | Value | |||
Luxottica Group SpA(1) | 118,630 | $ 2,470,293 | NETHERLANDS — 2.0% | |||
Saipem SpA | 809,344 | 20,668,433 | ASML Holding NV | 201,410 | $ 4,155,209 | |
Snam Rete Gas SpA | 1,831,824 | 7,933,539 | Koninklijke Ahold NV | 1,581,870 | 19,183,147 | |
68,476,377 | Koninklijke KPN NV | 249,540 | 3,282,910 | |||
JAPAN — 14.2% | 26,621,266 | |||||
Benesse Corp. | 246,100 | 10,345,302 | PEOPLE’S REPUBLIC OF CHINA — 3.3% | |||
Central Japan Railway Co. | 1,181 | 7,568,690 | Baidu, Inc. ADR(1) | 15,140 | 3,996,203 | |
Daikin Industries Ltd. | 83,600 | 2,584,304 | China Merchants Bank Co. | |||
FAST RETAILING CO. LTD. | 54,700 | 6,498,885 | Ltd. H Shares | 4,526,600 | 9,277,384 | |
Honda Motor Co. Ltd. | 562,100 | 16,316,719 | Ctrip.com International | |||
HOYA Corp. | 345,900 | 7,246,487 | Ltd. ADR | 140,570 | 5,756,342 | |
iShares FTSE/Xinhua China | ||||||
iShares MSCI Japan | 25 Index Fund | 140,930 | 5,262,326 | |||
Index Fund | 2,146,420 | 20,111,955 | ||||
Japan Steel | NetEase.com, Inc. ADR(1) | 174,330 | 6,028,331 | |||
Works Ltd. (The) | 902,000 | 11,783,563 | Shanda Interactive | |||
Entertainment Ltd. ADR(1) | 49,820 | 2,870,629 | ||||
Kurita Water Industries Ltd. | 181,300 | 5,024,800 | ||||
Mitsubishi Corp. | 721,000 | 13,682,985 | Tencent Holdings Ltd. | 940,600 | 10,535,681 | |
Mitsubishi Estate Co. Ltd. | 432,000 | 7,123,704 | 43,726,896 | |||
Mitsubishi UFJ | SINGAPORE — 0.6% | |||||
Financial Group, Inc. | 1,798,800 | 11,350,990 | United Overseas Bank Ltd. | 779,000 | 7,706,989 | |
Murata Manufacturing | SOUTH KOREA — 2.9% | |||||
Co. Ltd. | 142,400 | 6,091,285 | Hyundai Motor Co. | 225,450 | 12,550,857 | |
Nidec Corp. | 114,200 | 6,567,029 | KB Financial Group, Inc.(1) | 88,790 | 2,879,654 | |
Nintendo Co. Ltd. | 9,400 | 2,553,730 | POSCO | 22,840 | 7,656,370 | |
Nitori Co. Ltd. | 178,750 | 10,845,882 | Samsung | |||
Rakuten, Inc. | 26,040 | 14,320,492 | Electronics Co. Ltd. | 35,810 | 16,056,383 | |
SMC Corp. | 55,600 | 5,943,505 | 39,143,264 | |||
SOFTBANK CORP. | 438,200 | 8,007,740 | SPAIN — 3.4% | |||
Sony Financial Holdings, Inc. | 2,270 | 6,634,240 | Banco Santander SA | 2,234,292 | 24,088,724 | |
Terumo Corp. | 82,100 | 3,449,866 | Indra Sistemas SA | 261,340 | 5,955,544 | |
Unicharm Corp. | 84,900 | 5,931,313 | Telefonica SA | 686,930 | 14,838,751 | |
189,983,466 | 44,883,019 | |||||
LUXEMBOURG — 1.5% | SWEDEN — 0.6% | |||||
Millicom International | Electrolux AB, Series B(1) | 249,050 | 3,184,280 | |||
Cellular SA(1) | 166,967 | 10,134,897 | H & M Hennes & Mauritz AB | |||
SES SA Fiduciary | B Shares | 100,620 | 4,805,878 | |||
Depositary Receipt | 469,509 | 9,394,896 | 7,990,158 | |||
19,529,793 | SWITZERLAND — 9.9% | |||||
MEXICO — 0.3% | ABB Ltd.(1) | 402,565 | 6,634,798 | |||
America Movil, SAB de CV | Actelion Ltd.(1) | 94,850 | 4,906,871 | |||
ADR, Series L | 119,140 | 4,566,636 | ||||
Adecco SA | 233,510 | 10,189,247 | ||||
MULTI-NATIONAL — 1.4% | ||||||
Credit Suisse Group AG | 346,930 | 15,525,542 | ||||
iShares MSCI EAFE | ||||||
Growth Index Fund | 70,568 | 3,333,633 | Julius Baer Holding AG | 313,820 | 13,371,346 | |
iShares MSCI EAFE | Lonza Group AG | 47,070 | 4,866,798 | |||
Index Fund | 70,460 | 3,339,804 | Nestle SA | 671,990 | 24,419,105 | |
iShares MSCI Emerging | Novartis AG | 405,010 | 16,192,804 | |||
Markets Index Fund | 343,820 | 11,435,453 | Roche Holding AG | 118,369 | 16,152,809 | |
18,108,890 |
27
International Growth | |||||||
Shares | Value | Shares | Value | ||||
SGS SA | 3,710 | $ 4,643,787 | Temporary Cash Investments — 0.5% | ||||
Syngenta AG | 61,742 | 15,030,779 | JPMorgan U.S. Treasury | ||||
131,933,886 | Plus Money Market Fund | ||||||
TAIWAN (REPUBLIC OF CHINA) — 1.5% | Agency Shares | 94,422 | $ 94,422 | ||||
AU Optronics Corp. ADR | 776,257 | 8,065,310 | Repurchase Agreement, Goldman Sachs | ||||
Taiwan Semiconductor | Group, Inc., (collateralized by various U.S. | ||||||
Manufacturing Co. Ltd. ADR | 764,520 | 8,363,849 | Treasury obligations, 4.75%, 2/15/37, valued | ||||
at $7,364,173), in a joint trading account | |||||||
Wistron Corp. | 2,326,000 | 3,696,328 | at 0.10%, dated 5/29/09, due 6/1/09 | ||||
20,125,487 | (Delivery value $7,200,060) | 7,200,000 | |||||
TURKEY — 0.7% | TOTAL TEMPORARY | ||||||
Turkiye Garanti | CASH INVESTMENTS | ||||||
Bankasi AS(1) | 3,590,220 | 9,089,743 | (Cost $7,294,422) | 7,294,422 | |||
UNITED KINGDOM — 17.6% | TOTAL INVESTMENT | ||||||
Admiral Group plc | 686,017 | 9,577,880 | SECURITIES — 100.0% | ||||
(Cost $1,149,137,698) | 1,333,427,444 | ||||||
AMEC plc | 375,180 | 4,103,349 | |||||
OTHER ASSETS AND LIABILITIES(2) | (95,687) | ||||||
AstraZeneca plc | 255,880 | 10,666,539 | |||||
TOTAL NET ASSETS — 100.0% | $1,333,331,757 | ||||||
Autonomy Corp. plc(1) | 268,483 | 6,726,202 | |||||
Barclays plc | 1,137,780 | 5,485,040 | Market Sector Diversification | ||||
BG Group plc | 1,279,079 | 23,440,652 | |||||
British American | (as a % of net assets) | ||||||
Tobacco plc | 296,028 | 8,086,468 | Financials | 20.6% | |||
British Sky | Consumer Discretionary | 13.4% | |||||
Broadcasting Group plc | 1,621,060 | 11,695,173 | Industrials | 10.9% | |||
Cadbury plc | 148,980 | 1,302,178 | Information Technology | 9.9% | |||
Capita Group plc (The) | 1,099,100 | 12,750,281 | Health Care | 9.4% | |||
Carnival plc | 359,900 | 9,374,359 | Energy | 9.0% | |||
Cobham plc | 1,308,106 | 3,786,170 | Consumer Staples | 9.0% | |||
Compass Group plc | 2,063,140 | 11,939,545 | Materials | 8.0% | |||
GlaxoSmithKline plc | 541,592 | 9,128,907 | Telecommunication Services | 3.9% | |||
HSBC Holdings plc | 1,839,791 | 16,539,476 | Diversified | 3.2% | |||
Intercontinental | Utilities | 2.2% | |||||
Hotels Group plc | 364,660 | 3,885,200 | Cash and Equivalents* | 0.5% | |||
Kingfisher plc | 3,126,160 | 9,025,164 | |||||
*Includes temporary cash investments and other assets and liabilities. | |||||||
Man Group plc | 699,287 | 2,769,720 | |||||
Next plc | 135,020 | 3,212,038 | Notes to Schedule of Investments | ||||
Reckitt Benckiser Group plc | 358,023 | 15,530,776 | ADR = American Depositary Receipt | ||||
Reed Elsevier plc | 16,283 | 132,184 | EAFE = Europe, Australasia, and Far East | ||||
Scottish & Southern | FTSE = Financial Times Stock Exchange | ||||||
Energy plc | 982,877 | 18,562,457 | MSCI = Morgan Stanley Capital International | ||||
Standard Chartered plc | 297,482 | 6,075,730 | (1) | Non-income producing. | |||
Tesco plc | 2,800,599 | 16,594,169 | (2) | Category is less than 0.05% of total net assets. | |||
TUI Travel plc | 958,640 | 3,881,459 | |||||
Vodafone Group plc | 5,613,530 | 10,564,079 | |||||
234,835,195 | See Notes to Financial Statements. | ||||||
TOTAL COMMON STOCKS | |||||||
(Cost $1,141,843,276) | 1,326,133,022 |
28
Global Growth | ||||||
MAY 31, 2009 (UNAUDITED) | ||||||
Shares | Value | Shares | Value | |||
Common Stocks — 98.9% | JAPAN — 6.3% | |||||
AUSTRALIA — 3.3% | FamilyMart Co. Ltd. | 40,900 | $ 1,203,953 | |||
Murata Manufacturing | ||||||
BHP Billiton Ltd. | 226,080 | $ 6,351,528 | Co. Ltd. | 44,400 | 1,899,249 | |
CSL Ltd. | 236,575 | 5,539,929 | Nidec Corp. | 38,100 | 2,190,926 | |
11,891,457 | Nintendo Co. Ltd. | 11,300 | 3,069,909 | |||
BERMUDA — 0.9% | Nitori Co. Ltd. | 28,100 | 1,705,003 | |||
Accenture Ltd., Class A | 108,320 | 3,242,018 | Rakuten, Inc. | 7,442 | 4,092,669 | |
BRAZIL — 1.5% | SMC Corp. | 26,800 | 2,864,855 | |||
Petroleo Brasileiro SA ADR | 88,200 | 3,883,446 | Toyota Motor Corp. | 136,300 | 5,460,159 | |
Redecard SA | 108,800 | 1,570,401 | 22,486,723 | |||
5,453,847 | LUXEMBOURG — 1.5% | |||||
CANADA — 0.9% | SES SA Fiduciary | |||||
Research In Motion Ltd.(1) | 38,560 | 3,032,358 | Depositary Receipt | 263,448 | 5,271,606 | |
DENMARK — 1.5% | NETHERLANDS — 3.2% | |||||
Vestas Wind Systems A/S(1) | 71,791 | 5,253,404 | Koninklijke Ahold NV | 499,910 | 6,062,348 | |
FRANCE — 1.6% | Koninklijke KPN NV | 418,290 | 5,502,959 | |||
Pernod-Ricard SA | 40,400 | 2,524,980 | 11,565,307 | |||
Total SA | 58,100 | 3,363,033 | PEOPLE’S REPUBLIC OF CHINA — 2.0% | |||
5,888,013 | NetEase.com, Inc. ADR(1) | 66,470 | 2,298,533 | |||
GERMANY — 4.4% | Shanda Interactive | |||||
BASF SE | 44,140 | 1,864,023 | Entertainment Ltd. ADR(1) | 21,470 | 1,237,101 | |
Deutsche Boerse AG | 47,030 | 4,106,207 | Tencent Holdings Ltd. | 325,600 | 3,647,053 | |
Fresenius Medical Care | 7,182,687 | |||||
AG & Co. KGaA | 87,300 | 3,659,020 | SOUTH KOREA — 0.6% | |||
Muenchener | Samsung | |||||
Rueckversicherungs- | Electronics Co. Ltd. | 4,580 | 2,053,567 | |||
Gesellschaft AG | 44,320 | 6,218,501 | SWITZERLAND — 4.5% | |||
15,847,751 | Adecco SA | 83,800 | 3,656,627 | |||
GREECE — 1.5% | Julius Baer Holding AG | 84,120 | 3,584,213 | |||
National Bank | Lonza Group AG | 23,730 | 2,453,561 | |||
of Greece SA(1) | 197,196 | 5,457,841 | ||||
HONG KONG — 0.4% | Novartis AG | 72,850 | 2,912,633 | |||
Link Real Estate | Roche Holding AG | 25,990 | 3,546,634 | |||
Investment Trust (The) | 739,000 | 1,453,587 | 16,153,668 | |||
INDIA — 0.5% | UNITED KINGDOM — 9.7% | |||||
Bharat Heavy Electricals Ltd. | 37,480 | 1,739,310 | Admiral Group plc | 125,070 | 1,746,175 | |
IRELAND — 2.2% | BG Group plc | 355,940 | 6,523,026 | |||
CRH plc | 199,332 | 4,650,087 | British Sky Broadcasting | |||
Experian plc | 452,860 | 3,353,442 | Group plc | 247,550 | 1,785,955 | |
8,003,529 | Capita Group plc (The) | 352,089 | 4,084,464 | |||
ISRAEL — 0.5% | Carnival plc | 30,080 | 783,497 | |||
Teva Pharmaceutical | Compass Group plc | 1,317,570 | 7,624,876 | |||
Industries Ltd. ADR | 39,940 | 1,851,618 | Man Group plc | 454,890 | 1,801,718 | |
ITALY — 1.5% | Reckitt Benckiser Group plc | 131,085 | 5,686,371 | |||
Saipem SpA | 140,100 | 3,577,771 | Standard Chartered plc | 160,410 | 3,276,191 | |
Snam Rete Gas SpA | 404,860 | 1,753,429 | Vodafone Group plc | 811,760 | 1,527,648 | |
5,331,200 | 34,839,921 |
29
Global Growth | ||||||
Shares | Value | Shares | Value | |||
UNITED STATES — 50.4% | United Parcel Service, Inc., | |||||
3M Co. | 84,310 | $ 4,814,101 | Class B | 77,650 | $ 3,971,021 | |
Abbott Laboratories | 130,770 | 5,892,496 | Wal-Mart Stores, Inc. | 69,690 | 3,466,381 | |
Air Products | Weatherford | |||||
& Chemicals, Inc. | 52,490 | 3,400,302 | International Ltd.(1) | 91,790 | 1,900,053 | |
Allergan, Inc. | 71,860 | 3,171,182 | Western Union Co. (The) | 201,620 | 3,554,561 | |
American Express Co. | 223,100 | 5,544,035 | XTO Energy, Inc. | 78,840 | 3,371,987 | |
American Tower Corp., | 180,972,289 | |||||
Class A(1) | 203,770 | 6,494,150 | TOTAL COMMON STOCKS | |||
Apollo Group, Inc., Class A(1) | 48,450 | 2,863,395 | (Cost $343,675,283) | 354,971,701 | ||
Apple, Inc.(1) | 53,140 | 7,216,943 | Temporary Cash Investments — 0.5% | |||
Applied Materials, Inc. | 95,860 | 1,079,384 | JPMorgan U.S. Treasury | |||
Bank of New York | Plus Money Market Fund | |||||
Mellon Corp. (The) | 110,290 | 3,063,856 | Agency Shares | 96,564 | 96,564 | |
Baxter International, Inc. | 51,220 | 2,621,952 | Repurchase Agreement, Bank of America | |||
Becton, Dickinson & Co. | 31,360 | 2,122,445 | Securities, LLC, (collateralized by various | |||
U.S. Treasury obligations, 1.375%, 2/15/12, | ||||||
Carnival Corp. | 40,760 | 1,036,934 | valued at $1,635,058), in a joint trading | |||
Celgene Corp.(1) | 38,630 | 1,631,731 | account at 0.12%, dated 5/29/09, due | |||
Charles Schwab Corp. (The) | 157,020 | 2,763,552 | 6/1/09 (Delivery value $1,600,016) | 1,600,000 | ||
Chevron Corp. | 63,530 | 4,235,545 | TOTAL TEMPORARY | |||
CASH INVESTMENTS | ||||||
Cisco Systems, Inc.(1) | 318,220 | 5,887,070 | (Cost $1,696,564) | 1,696,564 | ||
Coach, Inc.(1) | 141,870 | 3,726,925 | TOTAL INVESTMENT | |||
Colgate-Palmolive Co. | 98,630 | 6,504,648 | SECURITIES — 99.4% | |||
CVS/Caremark Corp. | 121,540 | 3,621,892 | (Cost $345,371,847) | 356,668,265 | ||
Danaher Corp. | 70,160 | 4,234,156 | OTHER ASSETS | |||
DIRECTV | AND LIABILITIES — 0.6% | 2,129,123 | ||||
Group, Inc. (The)(1) | 258,640 | 5,819,400 | TOTAL NET ASSETS — 100.0% | $358,797,388 | ||
Discovery Communications, | ||||||
Inc., Class A(1) | 170,560 | 3,829,072 | Market Sector Diversification | |||
Fidelity National Financial, | (as a % of net assets) | |||||
Inc., Class A | 185,578 | 2,586,957 | Information Technology | 17.8% | ||
Gap, Inc. (The) | 210,080 | 3,749,928 | Consumer Discretionary | 15.4% | ||
Goldman Sachs | Financials | 14.6% | ||||
Group, Inc. (The) | 43,540 | 6,294,578 | ||||
Health Care | 11.3% | |||||
Google, Inc., Class A(1) | 12,900 | 5,382,267 | ||||
Energy | 11.0% | |||||
Hewlett-Packard Co. | 185,300 | 6,365,055 | Industrials | 11.0% | ||
Hudson City Bancorp., Inc. | 231,320 | 2,967,836 | Consumer Staples | 8.1% | ||
MasterCard, Inc., Class A | 19,920 | 3,512,494 | Telecommunication Services | 4.6% | ||
McDonald’s Corp. | 64,580 | 3,809,574 | Materials | 4.6% | ||
MetroPCS | ||||||
Communications, Inc.(1) | 179,560 | 3,075,863 | Utilities | 0.5% | ||
Occidental Petroleum Corp. | 95,020 | 6,376,792 | Cash and Equivalents* | 1.1% | ||
Oracle Corp. | 313,770 | 6,146,754 | *Includes temporary cash investments and other assets and liabilities. | |||
priceline.com, Inc.(1) | 33,650 | 3,705,202 | Notes to Schedule of Investments | |||
QUALCOMM, Inc. | 50,430 | 2,198,244 | ADR = American Depositary Receipt | |||
Southwestern Energy Co.(1) | 145,635 | 6,330,753 | (1) Non-income producing. | |||
St. Jude Medical, Inc.(1) | 132,300 | 5,162,346 | ||||
Union Pacific Corp. | 110,990 | 5,468,477 | See Notes to Financial Statements. |
30
Emerging Markets | ||||||
MAY 31, 2009 (UNAUDITED) | ||||||
Shares | Value | Shares | Value | |||
Common Stocks — 98.1% | INDONESIA — 2.3% | |||||
BRAZIL — 16.8% | PT Bank Rakyat Indonesia | 6,691,500 | $ 4,085,607 | |||
ALL-America Latina | PT Bumi Resources Tbk | 18,598,500 | 3,556,550 | |||
Logistica SA | 450,100 | $ 2,626,117 | PT Perusahaan Gas Negara | 14,040,500 | 3,941,432 | |
Banco Bradesco SA | 11,583,589 | |||||
Preference Shares | 400,000 | 6,072,373 | ISRAEL — 1.0% | |||
Global Village Telecom | Teva Pharmaceutical | |||||
Holding SA(1) | 232,900 | 3,919,150 | Industries Ltd. ADR | 104,264 | 4,833,679 | |
Itau Unibanco Banco Holding | LUXEMBOURG — 0.8% | |||||
SA Preference Shares | 619,799 | 10,032,831 | Evraz Group SA GDR | 162,636 | 3,853,329 | |
Natura Cosmeticos SA | 246,400 | 3,175,800 | MALAYSIA — 1.2% | |||
Net Servicos de | Bumiputra - Commerce | |||||
Comunicacao SA | Holdings Bhd | 1,593,500 | 3,902,266 | |||
Preference Shares(1) | 124,000 | 1,228,908 | ||||
Kuala Lumpur Kepong Bhd | 590,000 | 1,947,471 | ||||
Petroleo Brasileiro SA ADR | 556,055 | 24,483,102 | 5,849,737 | |||
Redecard SA | 142,200 | 2,052,490 | MEXICO — 2.9% | |||
Vale SA Preference Shares | 1,306,500 | 21,560,304 | America Movil SAB de CV | |||
Vivo Particpacoes SA ADR | 197,055 | 3,974,599 | ADR, Series L | 292,618 | 11,216,048 | |
Votorantim Celulose e Papel | Grupo Financiero Banorte, | |||||
SA Preference Shares(1) | 372,100 | 4,434,715 | SAB de CV | 1,291,036 | 3,038,424 | |
83,560,389 | 14,254,472 | |||||
CZECH REPUBLIC — 0.5% | PANAMA — 0.1% | |||||
CEZ AS | 52,335 | 2,364,407 | Copa Holdings SA, Class A | 21,744 | 757,126 | |
HONG KONG — 5.2% | PEOPLE’S REPUBLIC OF CHINA — 13.7% | |||||
China Mobile Ltd. ADR | 268,073 | 13,191,872 | Agile Property Holdings Ltd. | 2,916,000 | 3,622,645 | |
China Overseas Land & | Asia Cement China | |||||
Investment Ltd. | 1,824,000 | 3,857,361 | Holdings Corp.(1) | 6,293,500 | 5,039,805 | |
China Resources Land Ltd. | 1,128,000 | 2,642,303 | Bank of China Ltd. | 6,521,000 | 2,936,306 | |
CNOOC Ltd. | 4,704,000 | 6,218,667 | BYD Co. Ltd. H Shares(1) | 645,000 | 2,582,868 | |
25,910,203 | Changyou.com Ltd. ADR(1) | 57,092 | 1,878,327 | |||
HUNGARY — 0.6% | China Construction Bank | |||||
OTP Bank plc(1) | 167,322 | 2,980,474 | Corp. H Shares | 4,848,000 | 3,163,716 | |
INDIA — 8.5% | China High Speed | |||||
Bank of Baroda | 294,266 | 2,743,835 | Transmission Equipment | |||
Bharat Heavy Electricals Ltd. | 83,179 | 3,860,035 | Group Co. Ltd. | 2,797,000 | 5,932,756 | |
Grasim Industries Ltd. | 74,927 | 3,346,603 | China Life Insurance Co. Ltd. | |||
H Shares | 2,480,000 | 9,072,812 | ||||
HDFC Bank Ltd.(1) | 149,095 | 4,577,704 | ||||
China National Building | ||||||
ICICI Bank Ltd. | 246,818 | 3,885,126 | Material Co. Ltd. H Shares | 1,284,000 | 2,814,539 | |
Infosys Technologies Ltd. | 117,264 | 4,010,923 | China Shenhua Energy Co. | |||
JSW Steel Ltd.(1) | 313,637 | 3,688,885 | Ltd. H Shares | 1,089,000 | 3,635,778 | |
Maruti Suzuki India Ltd. | 118,461 | 2,585,890 | China Zhongwang | |||
Power Grid Corp. | Holdings Ltd.(1) | 1,261,600 | 1,163,590 | |||
of India Ltd. | 566,223 | 1,387,922 | Foxconn International | |||
Holdings Ltd.(1) | 1,713,000 | 1,228,266 | ||||
Reliance Industries Ltd.(1) | 212,871 | 10,275,073 | Guangzhou R&F Properties | |||
Sesa Goa Ltd. | 641,278 | 2,255,643 | Co. Ltd. H Shares | 1,270,000 | 2,907,748 | |
42,617,639 |
31
Emerging Markets | ||||||
Shares | Value | Shares | Value | |||
Industrial & Commercial | LG Electronics, Inc. | 75,159 | $ 7,247,982 | |||
Bank of China Ltd. H Shares | 11,873,000 | $ 7,503,198 | MegaStudy Co. Ltd. | 13,178 | 2,353,330 | |
Ping An Insurance Group Co. | NHN Corp.(1) | 27,629 | 4,403,202 | |||
of China Ltd. H Shares | 350,000 | 2,437,553 | ||||
Sino-Ocean Land | POSCO | 12,282 | 4,117,143 | |||
Holdings Ltd. | 2,532,000 | 2,602,212 | Samsung Electronics | |||
Co. Ltd. | 38,852 | 17,420,346 | ||||
Tencent Holdings Ltd. | 638,600 | 7,152,973 | Shinhan Financial | |||
Zhuzhou CSR Times Electric | Group Co. Ltd.(1) | 116,980 | 2,979,611 | |||
Co. Ltd. H Shares | 1,663,000 | 2,439,399 | 57,938,290 | |||
68,114,491 | ||||||
TAIWAN (REPUBLIC OF CHINA) — 13.9% | ||||||
PERU — 1.0% | ||||||
Acer, Inc. | 799,000 | 1,457,914 | ||||
Credicorp Ltd. | 81,698 | 4,919,854 | ||||
Asia Cement Corp. | 2,791,673 | 3,159,471 | ||||
POLAND — 0.5% | ||||||
AU Optronics Corp. | 4,307,000 | 4,475,798 | ||||
KGHM Polska Miedz SA | 105,671 | 2,330,193 | ||||
Catcher Technology Co. Ltd. | 1,013,000 | 2,888,195 | ||||
RUSSIAN FEDERATION — 6.7% | Cathay Financial | |||||
CTC Media, Inc.(1) | 493,551 | 4,891,090 | Holding Co. Ltd. | 2,081,000 | 3,404,258 | |
OAO Gazprom ADR | 443,717 | 10,422,856 | Hon Hai Precision | |||
OAO LUKOIL | 114,937 | 6,035,575 | Industry Co. Ltd. | 2,535,200 | 9,652,406 | |
Sberbank | 4,113,848 | 5,873,072 | HTC Corp. | 282,000 | 4,570,393 | |
Vimpel-Communications | Huaku Development Co. Ltd. | 1,101,000 | 3,018,250 | |||
ADR(1) | 234,827 | 3,066,841 | Hung Poo Real Estate | |||
Wimm-Bill-Dann Foods | Development Corp. | 1,667,000 | 2,584,274 | |||
OJSC ADR(1) | 62,621 | 3,372,767 | MediaTek, Inc. | 348,350 | 4,329,173 | |
33,662,201 | Shin Zu Shing Co. Ltd. | 636,000 | 3,060,776 | |||
SINGAPORE — 0.7% | Taiwan Fertilizer Co. Ltd. | 1,006,000 | 3,235,857 | |||
Wilmar International Ltd. | 1,061,000 | 3,620,874 | Taiwan Semiconductor | |||
SOUTH AFRICA — 6.7% | Manufacturing Co. Ltd. | 6,260,100 | 11,750,373 | |||
Aspen Pharmacare | U-Ming Marine | |||||
Holdings Ltd.(1) | 552,529 | 3,334,675 | Transport Corp. | 1,327,000 | 2,764,161 | |
Gold Fields Ltd. ADR | 182,720 | 2,481,338 | Wistron Corp. | 3,938,000 | 6,258,013 | |
Harmony Gold | Yuanta Financial | |||||
Mining Co. Ltd.(1) | 231,598 | 2,819,092 | Holding Co. Ltd. | 3,400,000 | 2,552,578 | |
Impala Platinum | 69,161,890 | |||||
Holdings Ltd. | 272,442 | 6,622,237 | THAILAND — 0.9% | |||
MTN Group Ltd. | 391,264 | 5,705,634 | Banpu Public Co. Ltd. NVDR | 234,800 | 2,180,218 | |
Naspers Ltd. N Shares | 220,566 | 5,303,121 | Kasikornbank PCL | 1,507,500 | 2,598,365 | |
Netcare Ltd.(1) | 1,905,448 | 2,388,581 | 4,778,583 | |||
Sasol Ltd. | 121,665 | 4,600,725 | TURKEY — 1.9% | |||
33,255,403 | Turk Hava Yollari AO | 462,874 | 2,694,068 | |||
SOUTH KOREA — 11.6% | Turkiye Garanti | |||||
CJ Internet Corp. | 235,691 | 3,492,692 | Bankasi AS(1) | 2,648,560 | 6,705,642 | |
Hyundai Development Co. | 92,090 | 3,027,704 | 9,399,710 | |||
Hyundai Engineering & | UNITED KINGDOM — 0.6% | |||||
Construction Co. Ltd. | 71,870 | 3,711,360 | Antofagasta plc | 285,841 | 2,952,974 | |
Hyundai Mobis | 55,874 | 5,290,007 | TOTAL COMMON STOCKS | |||
Hyundai Motor Co. | 69,964 | 3,894,913 | (Cost $399,179,312) | 488,699,507 |
32
Emerging Markets | |
Value | |
Temporary Cash Investments — 0.8% | |
Repurchase Agreement, Bank of America | |
Securities, LLC, (collateralized by various | |
U.S. Treasury obligations, 1.375%, 2/15/12, | |
valued at $4,189,835), in a joint trading | |
account at 0.12%, dated 5/29/09, due | |
6/1/09 (Delivery value $4,100,041) | |
(Cost $4,100,000) | $ 4,100,000 |
TOTAL INVESTMENT | |
SECURITIES — 98.9% | |
(Cost $403,279,312) | 492,799,507 |
OTHER ASSETS | |
AND LIABILITIES — 1.1% | 5,429,819 |
TOTAL NET ASSETS — 100.0% | $498,229,326 |
Market Sector Diversification | |
(as a % of net assets) | |
Financials | 23.8% |
Information Technology | 16.9% |
Materials | 15.2% |
Energy | 14.3% |
Telecommunication Services | 8.3% |
Consumer Discretionary | 7.3% |
Industrials | 6.2% |
Consumer Staples | 2.4% |
Health Care | 2.1% |
Utilities | 1.6% |
Cash and Equivalents* | 1.9% |
*Includes temporary cash investments and other assets and liabilities. | |
Notes to Schedule of Investments | |
ADR = American Depositary Receipt | |
GDR = Global Depositary Receipt | |
NVDR = Non-Voting Depositary Receipt | |
OJSC = Open Joint Stock Company | |
(1) Non-income producing. |
See Notes to Financial Statements.
33
International Value | ||||||
MAY 31, 2009 (UNAUDITED) | ||||||
Shares | Value | Shares | Value | |||
Common Stocks — 92.9% | HONG KONG — 4.5% | |||||
AUSTRALIA — 2.4% | Cheung Kong Holdings Ltd. | 54,300 | $ 673,311 | |||
Alumina Ltd. | 553,580 | $ 607,342 | China Mobile Ltd. | 43,500 | 426,208 | |
Australia & New Zealand | Hutchison Whampoa Ltd. | 56,900 | 400,165 | |||
Banking Group Ltd. | 4,630 | 59,562 | Swire Pacific Ltd. A Shares | 40,500 | 405,947 | |
National Australia Bank Ltd. | 26,912 | 478,614 | Swire Pacific Ltd. B Shares | 146,000 | 272,200 | |
1,145,518 | 2,177,831 | |||||
AUSTRIA — 0.5% | ISRAEL — 1.0% | |||||
Telekom Austria AG | 16,860 | 260,403 | Check Point Software | |||
Technologies(1) | 19,490 | 455,092 | ||||
BRAZIL — 3.2% | ||||||
Empresa Brasileira de | ITALY — 2.0% | |||||
Aeronautica SA ADR | 18,780 | 360,200 | ENI SpA | 21,370 | 517,320 | |
Petroleo Brasileiro SA ADR | 11,580 | 509,867 | Mediaset SpA | 26,230 | 154,636 | |
Vale SA ADR | UniCredit SpA(1) | 107,195 | 281,862 | |||
Preference Shares | 41,720 | 677,116 | 953,818 | |||
1,547,183 | JAPAN — 6.8% | |||||
DENMARK — 1.1% | FUJIFILM Holdings Corp. | 10,200 | 294,837 | |||
Vestas Wind Systems A/S(1) | 6,874 | 503,014 | Mabuchi Motor Co. Ltd. | 6,600 | 329,685 | |
FINLAND — 0.8% | Mitsubishi UFJ Financial | |||||
Stora Enso Oyj R Shares(1) | 34,110 | 204,663 | Group, Inc. | 22,000 | 138,827 | |
UPM-Kymmene Oyj | 20,660 | 193,700 | Mitsubishi UFJ Financial | |||
398,363 | Group, Inc., ADR | 9,000 | 57,060 | |||
FRANCE — 9.0% | Nintendo Co. Ltd. | 3,400 | 923,689 | |||
Nippon Telegraph & | ||||||
Accor SA | 4,160 | 185,119 | Telephone Corp. | 10,100 | 419,844 | |
AXA SA | 24,219 | 453,534 | Nomura Holdings, Inc. | 17,600 | 132,965 | |
Cie Generale des | Olympus Corp. | 11,900 | 234,288 | |||
Etablissements Michelin, | ||||||
Class B | 8,110 | 493,248 | Sony Corp. | 12,300 | 322,623 | |
Electricite de France | 6,680 | 350,245 | Takeda Pharmaceutical | |||
France Telecom SA | 33,620 | 822,054 | Co. Ltd. | 10,600 | 420,384 | |
GDF Suez | 11,844 | 466,934 | 3,274,202 | |||
Sanofi-Aventis | 14,343 | 913,731 | MEXICO — 1.3% | |||
Telefonos de Mexico | ||||||
Suez Environnement SA | 3,105 | 56,446 | SAB de CV ADR | 22,820 | 379,040 | |
Total SA | 3,880 | 224,588 | Telmex Internacional | |||
Vivendi | 14,190 | 374,620 | SAB de CV ADR | 22,820 | 256,725 | |
4,340,519 | 635,765 | |||||
GERMANY — 8.2% | NETHERLANDS — 5.4% | |||||
BASF SE | 8,620 | 364,021 | Akzo Nobel NV | 4,410 | 205,536 | |
Bayerische Motoren | ING Groep NV CVA | 27,040 | 288,388 | |||
Werke AG | 15,080 | 543,495 | Koninklijke Philips | |||
Deutsche Post AG | 42,330 | 585,570 | Electronics NV | 23,417 | 441,338 | |
E.ON AG | 20,850 | 737,200 | Reed Elsevier NV | 29,199 | 352,452 | |
Merck KGaA | 6,980 | 672,101 | Royal Dutch Shell plc, | |||
SAP AG | 11,810 | 508,425 | Class B | 28,585 | 777,301 | |
Siemens AG ADR | 7,490 | 550,066 | SBM Offshore NV | 24,119 | 409,933 | |
3,960,878 | Wolters Kluwer NV | 5,240 | 99,536 | |||
2,574,484 |
34
International Value | ||||||
Shares | Value | Shares | Value | |||
NORWAY — 1.1% | Novartis AG | 21,250 | $ 849,601 | |||
Telenor ASA(1) | 62,970 | $ 532,435 | Roche Holding AG | 2,940 | 401,197 | |
PEOPLE’S REPUBLIC OF CHINA — 3.9% | Swiss Reinsurance | 9,307 | 304,358 | |||
BYD Co. Ltd. H Shares(1) | 145,000 | 580,645 | UBS AG(1) | 20,605 | 311,517 | |
China Shenhua Energy Co. | 3,802,005 | |||||
Ltd. H Shares | 63,500 | 212,004 | TAIWAN (REPUBLIC OF CHINA) — 2.6% | |||
China Telecom Corp. Ltd. | Chunghwa Telecom Co., | |||||
H Shares | 824,000 | 391,255 | Ltd. ADR | 9,356 | 177,857 | |
Shanghai Electric Group Co. | Compal Electronics, Inc. | 303,592 | 258,531 | |||
Ltd. H Shares | 1,422,000 | 677,173 | Lite-On Technology Corp. | 149,476 | 132,759 | |
1,861,077 | Taiwan Semiconductor | |||||
PORTUGAL — 0.7% | Manufacturing Co. Ltd. | 368,000 | 690,746 | |||
Portugal Telecom SGPS SA | 39,220 | 352,706 | 1,259,893 | |||
RUSSIAN FEDERATION — 0.8% | TURKEY — 0.3% | |||||
OAO Gazprom ADR | 16,680 | 391,811 | Turkcell Iletisim Hizmet | |||
SINGAPORE — 1.6% | AS ADR | 10,400 | 138,424 | |||
DBS Group Holdings Ltd. | 92,250 | 755,449 | UNITED KINGDOM — 16.5% | |||
SOUTH KOREA — 4.6% | Aviva plc | 69,640 | 384,489 | |||
Hyundai Motor Co. | 10,360 | 576,744 | BAE Systems plc | 92,850 | 515,727 | |
KB Financial Group, Inc.(1) | 6,890 | 223,458 | BP plc | 84,470 | 697,217 | |
KT Corp ADR | 19,660 | 266,196 | British Sky Broadcasting | |||
Samsung | Group plc | 75,080 | 541,666 | |||
Electronics Co. Ltd. | 1,950 | 874,335 | Burberry Group plc | 30,150 | 188,273 | |
SK Telecom Co. Ltd. ADR | 16,530 | 260,017 | Cadbury plc | 69,413 | 606,713 | |
2,200,750 | GlaxoSmithKline plc | 45,840 | 772,665 | |||
SPAIN — 4.5% | HSBC Holdings plc | 83,400 | 749,755 | |||
Banco Santander SA | 41,710 | 449,691 | Kingfisher plc | 145,040 | 418,728 | |
Iberdrola SA | 27,680 | 236,981 | National Grid plc | 35,602 | 345,015 | |
Repsol YPF SA | 27,430 | 616,405 | Pearson plc | 40,140 | 424,811 | |
Telefonica SA ADR | 13,460 | 873,823 | Rentokil Initial plc | 139,260 | 180,263 | |
2,176,900 | Rolls-Royce Group plc(1) | 99,630 | 530,273 | |||
SWEDEN — 2.2% | Rolls-Royce Group plc, | |||||
Atlas Copco AB A Shares | 50,980 | 516,324 | Class C(1) | 8,548,254 | 13,816 | |
Loomis AB B Shares | 3,714 | 39,611 | Smiths Group plc | 16,746 | 197,350 | |
Niscayah Group AB | 18,570 | 28,984 | Standard Chartered plc | 19,350 | 395,202 | |
Nordea Bank AB | 12,900 | 103,360 | Unilever plc | 18,085 | 426,466 | |
Nordea Bank AB FDR | 47,630 | 380,128 | Vodafone Group plc | 294,863 | 554,901 | |
1,068,407 | 7,943,330 | |||||
SWITZERLAND — 7.9% | TOTAL COMMON STOCKS | |||||
(Cost $45,876,164) | 44,710,257 | |||||
ACE Ltd. | 11,760 | 517,322 | ||||
Lonza Group AG | 6,580 | 680,339 | ||||
Nestle SA | 20,300 | 737,671 |
35
International Value | |||
Shares/ | |||
Principal | |||
Amount | Value | ||
Temporary Cash Investments — 6.4% | |||
FHLB Discount Notes, | |||
0.07%, 6/1/09(2) | $ 700,000 | $ 700,000 | |
JPMorgan U.S. Treasury | |||
Plus Money Market Fund | |||
Agency Shares | 90,060 | 90,060 | |
Repurchase Agreement, Goldman Sachs | |||
Group, Inc., (collateralized by various U.S. | |||
Treasury obligations, 4.75%, 2/15/37, valued | |||
at $2,352,444), in a joint trading account | |||
at 0.10%, dated 5/29/09, due 6/1/09 | |||
(Delivery value $2,300,019) | 2,300,000 | ||
TOTAL TEMPORARY | |||
CASH INVESTMENTS | |||
(Cost $3,090,060) | 3,090,060 | ||
TOTAL INVESTMENT | |||
SECURITIES — 99.3% | |||
(Cost $48,966,224) | 47,800,317 | ||
OTHER ASSETS | |||
AND LIABILITIES — 0.7% | 353,981 | ||
TOTAL NET ASSETS — 100.0% | $48,154,298 | ||
Market Sector Diversification | |||
(as a % of net assets) | |||
Financials | 16.2% | ||
Telecommunication Services | 12.7% | ||
Industrials | 11.5% | ||
Information Technology | 10.5% | ||
Health Care | 10.3% | ||
Consumer Discretionary | 9.7% | ||
Energy | 9.0% | ||
Materials | 4.7% | ||
Utilities | 4.6% | ||
Consumer Staples | 3.7% | ||
Cash and Equivalents* | 7.1% | ||
*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 | |||
FHLB = Federal Home Loan Bank | |||
(1) | Non-income producing. | ||
(2) | The rate indicated is the yield to maturity at purchase. |
See Notes to Financial Statements.
36
Statement of Assets and Liabilities |
MAY 31, 2009 (UNAUDITED) | ||||
International | Global | Emerging | International | |
Growth | Growth | Markets | Value | |
Assets | ||||
Investment securities, at value (cost of | ||||
$1,149,137,698, $345,371,847, $403,279,312 | ||||
and $48,966,224, respectively) | $1,333,427,444 | $356,668,265 | $492,799,507 | $47,800,317 |
Foreign currency holdings, at value | ||||
(cost of $38,890, $2,342,723, $2,768,468 | ||||
and $106,683, respectively) | 153,555 | 2,468,479 | 2,780,531 | 117,305 |
Receivable for investments sold | 38,312,154 | 1,586,054 | 11,577,491 | — |
Receivable for capital shares sold | 761,087 | 374,544 | 2,634,236 | 20,868 |
Dividends and interest receivable | 5,179,421 | 650,215 | 2,164,850 | 341,540 |
Other assets | 207,487 | — | 252,376 | — |
1,378,041,148 | 361,747,557 | 512,208,991 | 48,280,030 | |
Liabilities | ||||
Disbursements in excess | ||||
of demand deposit cash | 338,634 | — | 1,525,974 | 645 |
Payable for investments purchased | 41,280,150 | 2,373,718 | 11,689,749 | — |
Payable for capital shares redeemed | 1,571,547 | 174,730 | 66,896 | 74,273 |
Accrued management fees | 1,481,823 | 354,900 | 689,376 | 46,078 |
Distribution fees payable | 2,399 | 1,650 | 2,418 | 1,140 |
Service fees (and distribution fees — | ||||
A Class and R Class) payable | 34,838 | 6,250 | 5,252 | 3,596 |
Accrued foreign taxes | — | 38,921 | — | — |
44,709,391 | 2,950,169 | 13,979,665 | 125,732 | |
Net Assets | $1,333,331,757 | $358,797,388 | $498,229,326 | $48,154,298 |
See Notes to Financial Statements. |
37
MAY 31, 2009 (UNAUDITED) | ||||
International | Global | Emerging | International | |
Growth | Growth | Markets | Value | |
Net Assets Consist of: | ||||
Capital (par value and paid-in surplus) | $1,675,681,091 | $467,850,764 | $717,300,306 | $55,158,931 |
Undistributed net investment income | 12,587,473 | 1,718,988 | 575,610 | 503,635 |
Accumulated net realized loss | ||||
on investment and foreign | ||||
currency transactions | (539,598,370) | (122,174,141) | (309,207,227) | (6,366,003) |
Net unrealized appreciation (depreciation) | ||||
on investments and translation of assets | ||||
and liabilities in foreign currencies | 184,661,563 | 11,401,777 | 89,560,637 | (1,142,265) |
$1,333,331,757 | $358,797,388 | $498,229,326 | $48,154,298 | |
Investor Class, $0.01 Par Value | ||||
Net assets | $1,110,626,673 | $291,844,844 | $432,985,316 | $2,972,191 |
Shares outstanding | 137,295,514 | 45,309,717 | 75,264,457 | 486,043 |
Net asset value per share | $8.09 | $6.44 | $5.75 | $6.12 |
Institutional Class, $0.01 Par Value | ||||
Net assets | $54,621,058 | $36,459,497 | $39,041,526 | $27,487,059 |
Shares outstanding | 6,741,750 | 5,598,636 | 6,657,282 | 4,491,887 |
Net asset value per share | $8.10 | $6.51 | $5.86 | $6.12 |
A Class, $0.01 Par Value | ||||
Net assets | $159,916,740 | $27,552,745 | $21,703,543 | $15,662,230 |
Shares outstanding | 19,805,986 | 4,346,949 | 3,863,401 | 2,555,151 |
Net asset value per share | $8.07 | $6.34 | $5.62 | $6.13 |
Maximum offering price (net asset value | ||||
divided by 0.9425) | $8.56 | $6.73 | $5.96 | $6.50 |
B Class, $0.01 Par Value | ||||
Net assets | $1,165,157 | $405,405 | $134,568 | $1,348,028 |
Shares outstanding | 145,611 | 65,047 | 23,364 | 226,012 |
Net asset value per share | $8.00 | $6.23 | $5.76 | $5.96 |
C Class, $0.01 Par Value | ||||
Net assets | $2,762,388 | $2,278,374 | $3,993,921 | $576,028 |
Shares outstanding | 347,366 | 377,990 | 730,259 | 94,704 |
Net asset value per share | $7.95 | $6.03 | $5.47 | $6.08 |
R Class, $0.01 Par Value | ||||
Net assets | $4,239,741 | $256,523 | $370,452 | $108,762 |
Shares outstanding | 524,334 | 40,401 | 64,269 | 17,842 |
Net asset value per share | $8.09 | $6.35 | $5.76 | $6.10 |
See Notes to Financial Statements. |
38
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2009 (UNAUDITED) | ||||
International | Global | Emerging | International | |
Growth | Growth | Markets | Value | |
Investment Income (Loss) | ||||
Income: | ||||
Dividends (net of foreign taxes withheld | ||||
of $2,265,532, $268,697, $241,024 and | ||||
$85,339, respectively) | $ 20,752,961 | $ 3,720,700 | $ 4,130,511 | $ 951,139 |
Interest | 3,651 | 2,318 | 1,620 | 1,483 |
Securities lending, net | 355,122 | 26,709 | — | — |
21,111,734 | 3,749,727 | 4,132,131 | 952,622 | |
Expenses: | ||||
Management fees | 8,056,838 | 1,972,239 | 3,401,932 | 245,842 |
Distribution fees: | ||||
B Class | 4,246 | 1,486 | 409 | 4,828 |
C Class | 10,105 | 7,960 | 12,003 | 1,404 |
Service fees: | ||||
B Class | 1,415 | 495 | 136 | 1,609 |
C Class | 3,368 | 2,653 | 4,001 | 468 |
Distribution and service fees: | ||||
A Class | 172,626 | 28,758 | 21,920 | 17,308 |
R Class | 8,324 | 591 | 583 | 204 |
Directors’ fees and expenses | 24,254 | 6,502 | 7,356 | 1,090 |
Other expenses | 23,660 | 277 | 5,168 | 60 |
8,304,836 | 2,020,961 | 3,453,508 | 272,813 | |
Net investment income (loss) | 12,806,898 | 1,728,766 | 678,623 | 679,809 |
Realized and Unrealized Gain (Loss) | ||||
Net realized gain (loss) on: | ||||
Investment transactions (net of foreign | ||||
taxes accrued of $(645), $—, $(10,541) | ||||
and $—, respectively) | (199,990,221) | (52,105,425) | (80,136,032) | (4,091,403) |
Foreign currency transactions | (53,908,678) | (10,736,115) | (34,783,539) | (580,537) |
(253,898,899) | (62,841,540) | (114,919,571) | (4,671,940) | |
Change in net unrealized appreciation | ||||
(depreciation) on: | ||||
Investments (net of foreign taxes accrued | ||||
of $—, $38,921, $— and $—, respectively) | 277,172,839 | 67,822,994 | 191,469,787 | 5,967,459 |
Translation of assets and liabilities | ||||
in foreign currencies | 134,352,364 | 23,117,525 | 57,559,622 | 3,820,138 |
411,525,203 | 90,940,519 | 249,029,409 | 9,787,597 | |
Net realized and unrealized gain (loss) | 157,626,304 | 28,098,979 | 134,109,838 | 5,115,657 |
Net Increase (Decrease) in Net Assets | ||||
Resulting from Operations | $ 170,433,202 | $ 29,827,745 | $ 134,788,461 | $ 5,795,466 |
See Notes to Financial Statements. |
39
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2009 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2008 | ||||
International Growth | Global Growth | |||
Increase (Decrease) in Net Assets | 2009 | 2008 | 2009 | 2008 |
Operations | ||||
Net investment income (loss) | $ 12,806,898 | $ 24,042,865 | $ 1,728,766 | $ 1,854,490 |
Net realized gain (loss) | (253,898,899) | (277,888,882) | (62,841,540) | (59,581,994) |
Change in net unrealized | ||||
appreciation (depreciation) | 411,525,203 | (941,342,544) | 90,940,519 | (199,271,317) |
Net increase (decrease) in net assets | ||||
resulting from operations | 170,433,202 | (1,195,188,561) | 29,827,745 | (256,998,821) |
Distributions to Shareholders | ||||
From net investment income: | ||||
Investor Class | (18,150,440) | (16,396,751) | (63,581) | — |
Institutional Class | (723,098) | (741,676) | (59,013) | — |
A Class | (2,178,683) | (1,249,007) | — | — |
B Class | (9,776) | — | — | — |
C Class | (24,583) | — | — | — |
R Class | (35,665) | (7,882) | — | — |
From net realized gains: | ||||
Investor Class | — | (119,741,515) | — | (79,511,253) |
Institutional Class | — | (4,054,455) | — | (2,837,675) |
��A Class | — | (14,778,847) | — | (3,126,404) |
B Class | — | (175,930) | — | (115,751) |
C Class | — | (399,617) | — | (473,318) |
R Class | — | (233,277) | — | (56,481) |
Decrease in net assets from distributions | (21,122,245) | (157,778,957) | (122,594) | (86,120,882) |
Capital Share Transactions | ||||
Net increase (decrease) in net assets | ||||
from capital share transactions | (19,861,053) | (81,116,944)(1) | 500,452 | 151,986,102(1) |
Redemption Fees | ||||
Increase in net assets from redemption fees | 23,157 | —(1) | 7,408 | —(1) |
Net increase (decrease) in net assets | 129,473,061 | (1,434,084,462) | 30,213,011 | (191,133,601) |
Net Assets | ||||
Beginning of period | 1,203,858,696 | 2,637,943,158 | 328,584,377 | 519,717,978 |
End of period | $1,333,331,757 | $ 1,203,858,696 | $358,797,388 | $ 328,584,377 |
Undistributed net investment income | $12,587,473 | $20,902,820 | $1,718,988 | $112,816 |
(1) Capital share transactions for the year ended November 30, 2008 were net of redemption fees (Note 4). |
See Notes to Financial Statements.
40
SIX MONTHS ENDED MAY 31, 2009 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2008 | ||||
Emerging Markets | International Value | |||
Increase (Decrease) in Net Assets | 2009 | 2008 | 2009 | 2008 |
Operations | ||||
Net investment income (loss) | $ 678,623 | $ 9,207,119 | $ 679,809 | $ 1,474,818 |
Net realized gain (loss) | (114,919,571) | (194,735,483) | (4,671,940) | (1,349,802) |
Change in net unrealized | ||||
appreciation (depreciation) | 249,029,409 | (497,505,878) | 9,787,597 | (38,801,444) |
Net increase (decrease) in net assets | ||||
resulting from operations | 134,788,461 | (683,034,242) | 5,795,466 | (38,676,428) |
Distributions to Shareholders | ||||
From net investment income: | ||||
Investor Class | (1,926,282) | (8,696,244) | (55,648) | (67,236) |
Institutional Class | (220,437) | (738,636) | (609,469) | (1,019,740) |
A Class | (68,022) | (227,182) | (312,916) | (452,102) |
B Class | — | — | (20,569) | (44,990) |
C Class | — | — | (4,827) | (2,646) |
R Class | (418) | (93) | (1,437) | (3,223) |
From net realized gains: | ||||
Investor Class | — | (112,116,560) | — | (243,350) |
Institutional Class | — | (7,840,573) | — | (3,150,452) |
A Class | — | (4,290,167) | — | (1,754,896) |
B Class | — | (18,131) | — | (284,309) |
C Class | — | (1,035,923) | — | (20,803) |
R Class | — | (3,805) | — | (14,258) |
Decrease in net assets from distributions | (2,215,159) | (134,967,314) | (1,004,866) | (7,058,005) |
Capital Share Transactions | ||||
Net increase (decrease) in net assets | ||||
from capital share transactions | 1,075,596 | (8,499,246)(1) | 49,605 | 11,701,641(1) |
Redemption Fees | ||||
Increase in net assets from redemption fees | 72,514 | —(1) | 74 | —(1) |
Net increase (decrease) in net assets | 133,721,412 | (826,500,802) | 4,840,279 | (34,032,792) |
Net Assets | ||||
Beginning of period | 364,507,914 | 1,191,008,716 | 43,314,019 | 77,346,811 |
End of period | $ 498,229,326 | $ 364,507,914 | $48,154,298 | $ 43,314,019 |
Undistributed net investment income | $575,610 | $2,112,146 | $503,635 | $828,692 |
(1) Capital share transactions for the year ended November 30, 2008 were net of redemption fees (Note 4). | ||||
See Notes to Financial Statements. |
41
Notes to Financial Statements |
MAY 31, 2009 (UNAUDITED)
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. The funds are diversified under the 1940 Act. International Growth’s, Global Growth’s 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 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. 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 A Class (formerly Advisor Class) (see Note 10), the B Class, the C Class and the R Class. Global Growth, Emerging Markets, and International Value are 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.
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. Investments in open-end management investment companies are valued at the reported net asset value. 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 the Board of Directors or its designee, in accordance with procedures adopted by the Board of Directors, 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.
42
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. The income earned, net of any rebates or fees, is included in the Statement of Operations. 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.
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 fees and expenses that reduce their value.
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. The funds may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and 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 certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
43
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 2005. Additionally, non-U.S. tax returns filed by the funds due to investments in certain foreign securities remain subject to examination by the relevant taxing authority for 7 years from the date of filing. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Accordingly, no provision has been made for federal or state income taxes. Interest and penalties associated with any federal or state income tax obligations, if any, are recorded as interest expense.
Distributions to Shareholders — Distributions to shareholders are recorded on the ex-dividend date. Distributions from net investment income, if any, are generally declared and paid 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 — The funds may impose a 2.00% redemption fee on shares held less than 60 days. The fee may not be applicable to all classes. 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.
Subsequent Events — Management has evaluated events or transactions that may have occurred since May 31, 2009, that would merit recognition or disclosure in the financial statements. This evaluation was completed through July 22, 2009, the date the financial statements were available to be issued.
44
2. Fees and Transactions with Related Parties
Management Fees — The corporation has entered into a Management Agreement with American Century Global Investment Management, Inc. (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 each fund’s assets as well as certain assets, if any, of other clients of the investment advisor outside the American Century Investments family of funds (such as subadvised funds and separate accounts) that have very similar investment teams and investment strategies (strategy assets).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, A Class, B Class, C Class and R Class. 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 strategy assets of Emerging Markets includes the assets of NT Emerging Markets Fund, one fund in a series issued by the corporation. 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. 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.
The effective annual management fee for each class of each fund for the six months ended May 31, 2009 was as follows:
Investor, A, B, C & R | Institutional | |
International Growth | 1.40% | 1.20% |
Global Growth | 1.25% | 1.05% |
Emerging Markets | 1.81% | 1.61% |
International Value | 1.30% | 1.10% |
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. Templeton has entered into a Subadvisory Agreement with Franklin Templeton Investments (Asia) Limited on behalf of International Value.
45
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, 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 American Century Investment Services, Inc. (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%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the six months ended May 31, 2009 , are detailed in the Statement of Operations.
Acquired Fund Fees and Expenses — The funds may invest in mutual funds, exchange traded funds, and business development companies (the acquired funds). Each fund will indirectly realize its pro rata share of the fees and expenses of the acquired funds in which it invests. These indirect fees and expenses are not paid out of the fund’s assets but are reflected in the return realized by the fund on its investment in the acquired funds.
Related Parties — Certain officers and directors of the corporation are also officers and/ or directors, 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.
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). The funds have a Mutual Funds Services Agreement with J.P. Morgan Investor Services Co. (JPMIS). JPMorgan Chase Bank (JPMCB) is a custodian of the funds. International Growth, Global Growth, and Emerging Markets have a securities lending agreement with JPMCB. JPMIM, JPMIS and JPMCB are wholly owned subsidiaries of JPMorgan Chase & Co. (JPM). JPM is an equity investor in ACC.
3. Investment Transactions
Investment transactions, excluding short-term investments, for the six months ended May 31, 2009, were as follows:
International Growth | Global Growth | Emerging Markets | International Value | |
Purchases | $846,060,620 | $177,044,562 | $323,491,375 | $2,129,488 |
Proceeds from sales | $872,146,865 | $173,822,167 | $326,110,685 | $2,102,832 |
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4. Capital Share Transactions | ||||
Transactions in shares of the funds were as follows: | ||||
Six months ended May 31, 2009 | Year ended November 30, 2008 | |||
Shares | Amount | Shares | Amount | |
International Growth | ||||
Investor Class/Shares Authorized | 1,000,000,000 | 1,000,000,000 | ||
Sold | 7,231,270 | $ 49,409,469 | 16,346,524 | $ 188,343,865 |
Issued in reinvestment of distributions | 2,043,214 | 15,589,724 | 9,115,075 | 121,417,039 |
Redeemed | (14,474,936) | (96,873,407) | (35,401,123) | (406,466,004)(1) |
(5,200,452) | (31,874,214) | (9,939,524) | (96,705,100) | |
Institutional Class/Shares Authorized | 150,000,000 | 150,000,000 | ||
Sold | 2,590,421 | 17,714,635 | 2,270,167 | $28,658,822 |
Issued in reinvestment of distributions | 88,473 | 675,052 | 336,456 | 4,483,545 |
Redeemed | (1,121,927) | (7,537,436) | (2,816,175) | (33,255,557)(2) |
1,556,967 | 10,852,251 | (209,552) | (113,190) | |
A Class/Shares Authorized | 125,000,000 | 125,000,000 | ||
Sold | 3,613,780 | 24,969,114 | 7,835,854 | 89,842,720 |
Issued in reinvestment of distributions | 210,171 | 1,601,500 | 994,597 | 13,237,814 |
Issued in connection with reclassification | ||||
(Note 10) | 2,300,787 | 34,138,899 | ||
Redeemed | (3,771,058) | (25,573,818) | (7,677,721) | (88,327,633) |
52,893 | 996,796 | 3,453,517 | 48,891,800 | |
A Class (old) /Shares Authorized | N/A | N/A | ||
Redeemed in connection with | ||||
reclassification (Note 10) | (2,300,787) | (34,138,899) | ||
B Class/Shares Authorized | 10,000,000 | 10,000,000 | ||
Sold | 7,173 | 49,469 | 18,577 | 222,018 |
Issued in reinvestment of distributions | 971 | 7,361 | 8,548 | 113,065 |
Redeemed | (34,560) | (222,917) | (81,292) | (889,519) |
(26,416) | (166,087) | (54,167) | (554,436) | |
C Class/Shares Authorized | 10,000,000 | 10,000,000 | ||
Sold | 12,909 | 88,744 | 90,230 | 1,157,701 |
Issued in reinvestment of distributions | 2,254 | 16,969 | 21,431 | 281,955 |
Redeemed | (126,513) | (826,330) | (154,191) | (1,633,948) |
(111,350) | (720,617) | (42,530) | (194,292) | |
R Class/Shares Authorized | 5,000,000 | 5,000,000 | ||
Sold | 202,297 | 1,448,162 | 252,014 | 3,075,164 |
Issued in reinvestment of distributions | 4,389 | 33,532 | 16,313 | 217,298 |
Redeemed | (64,789) | (430,876) | (158,761) | (1,595,289)(3) |
141,897 | 1,050,818 | 109,566 | 1,697,173 | |
Net increase (decrease) | (3,586,461) | $ (19,861,053) | (8,983,477) | $ (81,116,944) |
(1) | Net of redemption fees of $133,577. |
(2) | Net of redemption fees of $4,072. |
(3) | Net of redemption fees of $36. |
47
Six months ended May 31, 2009 | Year ended November 30, 2008 | |||
Shares | Amount | Shares | Amount | |
Global Growth | ||||
Investor Class/Shares Authorized | 150,000,000 | 150,000,000 | ||
Sold | 2,694,372 | $ 15,425,327 | 12,903,489 | $ 117,137,528 |
Issued in reinvestment of distributions | 10,254 | 52,087 | 7,562,700 | 77,627,909 |
Redeemed | (3,974,701) | (22,505,154) | (11,832,280) | (100,451,544)(1) |
(1,270,075) | (7,027,740) | 8,633,909 | 94,313,893 | |
Institutional Class/Shares Authorized | 35,000,000 | 35,000,000 | ||
Sold | 1,357,431 | 8,034,453 | 6,292,500 | 53,627,417 |
Issued in reinvestment of distributions | 11,450 | 58,854 | 274,954 | 2,837,675 |
Redeemed | (543,715) | (3,043,579) | (3,067,976) | (22,933,004)(2) |
825,166 | 5,049,728 | 3,499,478 | 33,532,088 | |
A Class/Shares Authorized | 15,000,000 | 15,000,000 | ||
Sold | 1,450,587 | 8,184,462 | 3,419,298 | 29,258,859 |
Issued in reinvestment of distributions | — | — | 295,381 | 2,989,742 |
Redeemed | (969,401) | (5,378,547) | (1,314,317) | (10,733,547) |
481,186 | 2,805,915 | 2,400,362 | 21,515,054 | |
B Class/Shares Authorized | 10,000,000 | 10,000,000 | ||
Sold | 8,892 | 47,877 | 42,324 | 388,905 |
Issued in reinvestment of distributions | — | — | 10,224 | 102,885 |
Redeemed | (18,153) | (96,602) | (29,348) | (240,661) |
(9,261) | (48,725) | 23,200 | 251,129 | |
C Class/Shares Authorized | 10,000,000 | 10,000,000 | ||
Sold | 44,054 | 246,637 | 296,297 | 2,601,972 |
Issued in reinvestment of distributions | — | — | 30,561 | 297,645 |
Redeemed | (95,837) | (508,373) | (112,889) | (819,667) |
(51,783) | (261,736) | 213,969 | 2,079,950 | |
R Class/Shares Authorized | 5,000,000 | 5,000,000 | ||
Sold | 7,967 | 44,538 | 26,269 | 272,639 |
Issued in reinvestment of distributions | — | — | 5,543 | 56,481 |
Redeemed | (11,061) | (61,528) | (4,313) | (35,132)(3) |
(3,094) | (16,990) | 27,499 | 293,988 | |
Net increase (decrease) | (27,861) | $ 500,452 | 14,798,417 | $ 151,986,102 |
(1) | Net of redemption fees of $38,958. |
(2) | Net of redemption fees of $10,749. |
(3) | Net of redemption fees of $14. |
48
Six months ended May 31, 2009 | Year ended November 30, 2008 | |||
Shares | Amount | Shares | Amount | |
Emerging Markets | ||||
Investor Class/Shares Authorized | 235,000,000 | 235,000,000 | ||
Sold | 8,865,935 | $ 41,781,670 | 20,955,762 | $ 186,101,096 |
Issued in reinvestment of distributions | 411,074 | 1,602,423 | 10,190,892 | 109,760,155 |
Redeemed | (9,870,097) | (42,069,158) | (39,623,083) | (329,408,602)(1) |
(593,088) | 1,314,935 | (8,476,429) | (33,547,351) | |
Institutional Class/Shares Authorized | 40,000,000 | 40,000,000 | ||
Sold | 704,429 | 3,232,434 | 1,154,823 | 11,251,167 |
Issued in reinvestment of distributions | 55,526 | 220,437 | 783,601 | 8,579,209 |
Redeemed | (496,870) | (2,131,601) | (1,342,517) | (10,979,038)(2) |
263,085 | 1,321,270 | 595,907 | 8,851,338 | |
A Class/Shares Authorized | 40,000,000 | 40,000,000 | ||
Sold | 996,937 | 4,351,127 | 3,262,064 | 29,194,767 |
Issued in reinvestment of distributions | 17,381 | 66,223 | 423,941 | 4,440,300 |
Redeemed | (1,355,351) | (5,772,183) | (2,449,683) | (19,187,483)(3) |
(341,033) | (1,354,833) | 1,236,322 | 14,447,584 | |
B Class/Shares Authorized | 10,000,000 | 10,000,000 | ||
Sold | 3,561 | 16,228 | 29,032 | 308,820 |
Issued in reinvestment of distributions | — | — | 1,335 | 14,264 |
Redeemed | (7,215) | (29,839) | (7,598) | (83,381) |
(3,654) | (13,611) | 22,769 | 239,703 | |
C Class/Shares Authorized | 5,000,000 | 5,000,000 | ||
Sold | 100,850 | 426,289 | 487,010 | 4,542,960 |
Issued in reinvestment of distributions | — | — | 96,421 | 990,913 |
Redeemed | (182,686) | (747,462) | (523,164) | (4,321,726) |
(81,836) | (321,173) | 60,267 | 1,212,147 | |
R Class/Shares Authorized | 10,000,000 | 10,000,000 | ||
Sold | 33,509 | 144,523 | 41,643 | 357,176 |
Issued in reinvestment of distributions | 107 | 418 | 369 | 3,898 |
Redeemed | (3,786) | (15,933) | (9,693) | (63,741)(4) |
29,830 | 129,008 | 32,319 | 297,333 | |
Net increase (decrease) | (726,696) | $ 1,075,596 | (6,528,845) | $ (8,499,246) |
(1) | Net of redemption fees of $790,067. |
(2) | Net of redemption fees of $30,813. |
(3) | Net of redemption fees of $1,714. |
(4) | Net of redemption fees of $13. |
49
Six months ended May 31, 2009 | Year ended November 30, 2008 | |||
Shares | Amount | Shares | Amount | |
International Value | ||||
Investor Class/Shares Authorized | 55,000,000 | 55,000,000 | ||
Sold | 122,033 | $ 673,089 | 336,549 | $ 2,927,576 |
Issued in reinvestment of distributions | 9,438 | 54,649 | 30,784 | 306,033 |
Redeemed | (104,344) | (555,208) | (173,561) | (1,437,908)(1) |
27,127 | 172,530 | 193,772 | 1,795,701 | |
Institutional Class/Shares Authorized | 55,000,000 | 55,000,000 | ||
Sold | 51,501 | 278,897 | 60,908 | 582,254 |
Issued in reinvestment of distributions | 105,262 | 609,469 | 417,025 | 4,170,192 |
Redeemed | (14,276) | (72,760) | (64,385) | (530,218)(2) |
142,487 | 815,606 | 413,548 | 4,222,228 | |
A Class/Shares Authorized | 55,000,000 | 55,000,000 | ||
Sold | 310,798 | 1,670,425 | 1,272,162 | 11,190,952 |
Issued in reinvestment of distributions | 52,914 | 307,967 | 217,383 | 2,174,640 |
Redeemed | (547,786) | (2,812,564) | (888,351) | (7,481,603)(3) |
(184,074) | (834,172) | 601,194 | 5,883,989 | |
B Class/Shares Authorized | 5,000,000 | 5,000,000 | ||
Sold | 11,616 | 63,349 | 21,765 | 194,567 |
Issued in reinvestment of distributions | 3,600 | 20,448 | 33,502 | 327,311 |
Redeemed | (76,184) | (382,824) | (131,957) | (1,128,036) |
(60,968) | (299,027) | (76,690) | (606,158) | |
C Class/Shares Authorized | 50,000,000 | 50,000,000 | ||
Sold | 42,480 | 226,564 | 60,519 | 534,931 |
Issued in reinvestment of distributions | 808 | 4,679 | 2,136 | 20,888 |
Redeemed | (10,663) | (55,153) | (20,080) | (138,670) |
32,625 | 176,090 | 42,575 | 417,149 | |
R Class/Shares Authorized | 5,000,000 | 5,000,000 | ||
Sold | 3,368 | 18,107 | 11,311 | 96,932 |
Issued in reinvestment of distributions | 248 | 1,437 | 1,753 | 17,481 |
Redeemed | (177) | (966) | (16,329) | (125,681)(4) |
3,439 | 18,578 | (3,265) | (11,268) | |
Net increase (decrease) | (39,364) | $ 49,605 | 1,171,134 | $11,701,641 |
(1) | Net of redemption fees of $1,002. |
(2) | Net of redemption fees of $129. |
(3) | Net of redemption fees of $18. |
(4) | Net of redemption fees of $35. |
50
5. Fair Value Measurements
The funds’ securities valuation process is based on several considerations and may use multiple inputs to determine the fair value of the positions held by the funds. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels as follows:
• Level 1 valuation inputs consist of actual quoted prices based on an active market;
• Level 2 valuation inputs consist of significant direct or indirect observable market data; or
• Level 3 valuation inputs consist of significant unobservable inputs such as the fund’s own assumptions.
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the valuation inputs used to determine the fair value of the funds’ securities as of May 31, 2009:
Fund/Valuation Inputs | Value of Investment Securities |
International Growth | |
Level 1 — Quoted Prices | $ 153,074,818 |
Level 2 — Other Significant Observable Inputs | 1,180,352,626 |
Level 3 — Significant Unobservable Inputs | — |
$1,333,427,444 | |
Global Growth | |
Level 1 — Quoted Prices | $196,613,927 |
Level 2 — Other Significant Observable Inputs | 160,054,338 |
Level 3 — Significant Unobservable Inputs | — |
$356,668,265 | |
Emerging Markets | |
Level 1 — Quoted Prices | $ 75,092,043 |
Level 2 — Other Significant Observable Inputs | 417,707,464 |
Level 3 — Significant Unobservable Inputs | — |
$492,799,507 | |
International Value | |
Level 1 — Quoted Prices | $ 5,568,866 |
Level 2 — Other Significant Observable Inputs | 42,231,451 |
Level 3 — Significant Unobservable Inputs | — |
$47,800,317 |
51
6. Bank Line of Credit
The funds, along with certain other funds in the American Century Investments family of funds, had a $500,000,000 unsecured bank line of credit agreement with Bank of America, N.A. The line expired December 10, 2008, and was not renewed. The agreement allowed the funds to borrow money for temporary or emergency purposes to fund shareholder redemptions. Borrowings under the agreement were subject to interest at the Federal Funds rate plus 0.40%. The funds did not borrow from the line during the six months ended May 31, 2009.
7. Interfund Lending
The funds, along with certain other funds in the American Century Investments family of funds, may participate in an interfund lending program, pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC). This program provides an alternative credit facility allowing the funds to borrow from or lend to other funds in the American Century Investments family of funds that permit such transactions. Interfund lending transactions are subject to each fund’s investment policies and borrowing and lending limits. The interfund loan rate earned/paid on interfund lending transactions is determined daily based on the average of certain current market rates. Interfund lending transactions normally extend only overnight, but can have a maximum duration of seven days. The program is subject to annual approval by the Board of Directors. During the six months ended May 31, 2009, the funds did not utilize the program.
8. 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.
9. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of May 31, 2009, the components of investments for federal income tax purposes were as follows:
International Growth | Global Growth | Emerging Markets | International Value | |
Federal tax cost of investments | $1,228,130,015 | $350,016,901 | $410,687,149 | $49,124,045 |
Gross tax appreciation | ||||
of investments | $155,235,093 | $ 30,775,585 | $ 97,901,053 | $ 8,115,311 |
Gross tax depreciation | ||||
of investments | (49,937,664) | (24,124,221) | (15,788,695) | (9,439,039) |
Net tax appreciation | ||||
(depreciation) of investments | $105,297,429 | $ 6,651,364 | $ 82,112,358 | $(1,323,728) |
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.
52
As of November 30, 2008, the accumulated capital losses listed below 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 in 2016.
The capital and currency loss deferrals listed below for the funds represent net capital and foreign currency losses incurred in the one-month period ended November 30, 2008. The funds have elected to treat such losses as having been incurred in the following fiscal year for federal income tax purposes.
International Growth | Global Growth | Emerging Markets | International Value | |
Accumulated capital losses | $(131,091,099) | $(40,260,034) | $(150,745,366) | $(684,213) |
Capital loss deferrals | $(72,036,444) | $(11,678,863) | $(39,676,576) | $(686,290) |
Currency loss deferrals | $(36,669) | $(15,152) | $(94,323) | $(16,268) |
10. Corporate Event
On September 25, 2007, the A Class (old) shareholders of International 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 December 3, 2007. Subsequent to the reclassification, the Advisor Class was renamed A Class.
11. Recently Issued Accounting Standards
In March 2008, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities—an amendment of FASB Statement No. 133” (FAS 161). FAS 161 is effective for interim periods beginning after November 15, 2008 and has been adopted by the funds. FAS 161 amends and expands disclosures about derivative instruments and hedging activities. FAS 161 requires qualitative disclosures about the objectives and strategies of derivative instruments, quantitative disclosures about the fair value amounts of and gains and losses on derivative instruments, and disclosures of credit risk-related contingent features in hedging activities.
53
Financial Highlights | ||||||
International Growth | ||||||
Investor Class | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(1) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $7.15 | $14.87 | $12.17 | $9.75 | $8.79 | $7.54 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | 0.08 | 0.14 | 0.13 | 0.06 | 0.11 | 0.05 |
Net Realized and | ||||||
Unrealized Gain (Loss) | 0.99 | (6.96) | 2.66 | 2.54 | 0.94 | 1.26 |
Total From | ||||||
Investment Operations | 1.07 | (6.82) | 2.79 | 2.60 | 1.05 | 1.31 |
Distributions | ||||||
From Net | ||||||
Investment Income | (0.13) | (0.11) | (0.09) | (0.18) | (0.09) | (0.06) |
From Net Realized Gains | — | (0.79) | — | — | — | — |
Total Distributions | (0.13) | (0.90) | (0.09) | (0.18) | (0.09) | (0.06) |
Net Asset Value, | ||||||
End of Period | $8.09 | $7.15 | $14.87 | $12.17 | $9.75 | $8.79 |
Total Return(3) | 15.05% | (48.67)% | 23.09% | 27.03% | 12.09% | 17.45% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 1.41%(4) | 1.31% | 1.27% | 1.26% | 1.23% | 1.26% |
Ratio of Net Investment | ||||||
Income (Loss) to Average | ||||||
Net Assets | 2.24%(4) | 1.18% | 0.94% | 0.52% | 1.22% | 0.57% |
Portfolio Turnover Rate | 73% | 144% | 133% | 95% | 89% | 118% |
Net Assets, End of Period | ||||||
(in thousands) | $1,110,627 | $1,018,753 | $2,267,093 | $2,352,967 | $2,249,430 | $2,395,249 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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. |
See Notes to Financial Statements.
54
International Growth | ||||||
Institutional Class | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(1) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $7.17 | $14.91 | $12.20 | $9.78 | $8.82 | $7.56 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | 0.10 | 0.15 | 0.17 | 0.07 | 0.13 | 0.06 |
Net Realized and | ||||||
Unrealized Gain (Loss) | 0.97 | (6.96) | 2.66 | 2.55 | 0.94 | 1.27 |
Total From | ||||||
Investment Operations | 1.07 | (6.81) | 2.83 | 2.62 | 1.07 | 1.33 |
Distributions | ||||||
From Net | ||||||
Investment Income | (0.14) | (0.14) | (0.12) | (0.20) | (0.11) | (0.07) |
From Net Realized Gains | — | (0.79) | — | — | — | — |
Total Distributions | (0.14) | (0.93) | (0.12) | (0.20) | (0.11) | (0.07) |
Net Asset Value, | ||||||
End of Period | $8.10 | $7.17 | $14.91 | $12.20 | $9.78 | $8.82 |
Total Return(3) | 15.09% | (48.55)% | 23.36% | 27.19% | 12.28% | 17.78% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 1.21%(4) | 1.11% | 1.07% | 1.06% | 1.03% | 1.06% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 2.44%(4) | 1.38% | 1.14% | 0.72% | 1.42% | 0.77% |
Portfolio Turnover Rate | 73% | 144% | 133% | 95% | 89% | 118% |
Net Assets, End of Period | ||||||
(in thousands) | $54,621 | $37,160 | $80,452 | $125,814 | $247,077 | $283,330 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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. |
See Notes to Financial Statements.
55
International Growth | ||||||
A Class(1) | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(2) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $7.13 | $14.82 | $12.12 | $9.72 | $8.76 | $7.52 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(3) | 0.07 | 0.11 | 0.08 | 0.03 | 0.09 | 0.03 |
Net Realized and | ||||||
Unrealized Gain (Loss) | 0.98 | (6.94) | 2.68 | 2.52 | 0.94 | 1.25 |
Total From | ||||||
Investment Operations | 1.05 | (6.83) | 2.76 | 2.55 | 1.03 | 1.28 |
Distributions | ||||||
From Net | ||||||
Investment Income | (0.11) | (0.07) | (0.06) | (0.15) | (0.07) | (0.04) |
From Net Realized Gains | — | (0.79) | — | — | — | — |
Total Distributions | (0.11) | (0.86) | (0.06) | (0.15) | (0.07) | (0.04) |
Net Asset Value, | ||||||
End of Period | $8.07 | $7.13 | $14.82 | $12.12 | $9.72 | $8.76 |
Total Return(4) | 14.82% | (48.79)% | 22.87% | 26.57% | 11.85% | 17.07% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 1.66%(5) | 1.56% | 1.52% | 1.51% | 1.48% | 1.51% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 1.99%(5) | 0.93% | 0.69% | 0.27% | 0.97% | 0.32% |
Portfolio Turnover Rate | 73% | 144% | 133% | 95% | 89% | 118% |
Net Assets, End of Period | ||||||
(in thousands) | $159,917 | $140,798 | $241,579 | $336,497 | $259,651 | $275,195 |
(1) | Prior to December 3, 2007, the A Class was referred to as the Advisor Class. |
(2) | Six months ended May 31, 2009 (unaudited). |
(3) | Computed using average shares outstanding throughout the period. |
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. Total returns for periods less 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. |
See Notes to Financial Statements.
56
International Growth | ||||||
B Class | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(1) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $7.04 | $14.68 | $12.04 | $9.65 | $8.70 | $7.48 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | 0.04 | 0.02 | —(3) | (0.05) | 0.02 | (0.03) |
Net Realized and | ||||||
Unrealized Gain (Loss) | 0.98 | (6.87) | 2.64 | 2.52 | 0.93 | 1.25 |
Total From | ||||||
Investment Operations | 1.02 | (6.85) | 2.64 | 2.47 | 0.95 | 1.22 |
Distributions | ||||||
From Net | ||||||
Investment Income | (0.06) | — | — | (0.08) | —(3) | — |
From Net Realized Gains | — | (0.79) | — | — | — | — |
Total Distributions | (0.06) | (0.79) | — | (0.08) | —(3) | — |
Net Asset Value, | ||||||
End of Period | $8.00 | $7.04 | $14.68 | $12.04 | $9.65 | $8.70 |
Total Return(4) | 14.47% | (49.18%) | 21.93% | 25.71% | 10.97% | 16.31% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 2.41%(5) | 2.31% | 2.27% | 2.26% | 2.23% | 2.26% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 1.24%(5) | 0.18% | (0.06)% | (0.48)% | 0.22% | (0.43)% |
Portfolio Turnover Rate | 73% | 144% | 133% | 95% | 89% | 118% |
Net Assets, End of Period | ||||||
(in thousands) | $1,165 | $1,211 | $3,320 | $2,699 | $1,676 | $1,107 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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 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. |
See Notes to Financial Statements.
57
International Growth | ||||||
C Class | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(1) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $7.00 | $14.60 | $11.97 | $9.60 | $8.66 | $7.45 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | 0.04 | 0.02 | —(3) | (0.05) | 0.02 | (0.03) |
Net Realized and | ||||||
Unrealized Gain (Loss) | 0.97 | (6.83) | 2.63 | 2.50 | 0.92 | 1.24 |
Total From | ||||||
Investment Operations | 1.01 | (6.81) | 2.63 | 2.45 | 0.94 | 1.21 |
Distributions | ||||||
From Net | ||||||
Investment Income | (0.06) | — | — | (0.08) | —(3) | — |
From Net Realized Gains | — | (0.79) | — | — | — | — |
Total Distributions | (0.06) | (0.79) | — | (0.08) | —(3) | — |
Net Asset Value, | ||||||
End of Period | $7.95 | $7.00 | $14.60 | $11.97 | $9.60 | $8.66 |
Total Return(4) | 14.41% | (49.18)% | 21.97% | 25.64% | 10.91% | 16.24% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 2.41%(5) | 2.31% | 2.27% | 2.26% | 2.23% | 2.26% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 1.24%(5) | 0.18% | (0.06)% | (0.48)% | 0.22% | (0.43)% |
Portfolio Turnover Rate | 73% | 144% | 133% | 95% | 89% | 118% |
Net Assets, End of Period | ||||||
(in thousands) | $2,762 | $3,210 | $7,318 | $6,250 | $5,246 | $5,070 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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 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. |
See Notes to Financial Statements.
58
International Growth | ||||||
R Class | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(1) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $7.13 | $14.81 | $12.12 | $9.71 | $8.75 | $7.53 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | 0.07 | 0.09 | 0.07 | 0.01 | 0.07 | 0.02 |
Net Realized and | ||||||
Unrealized Gain (Loss) | 0.98 | (6.96) | 2.65 | 2.53 | 0.94 | 1.25 |
Total From | ||||||
Investment Operations | 1.05 | (6.87) | 2.72 | 2.54 | 1.01 | 1.27 |
Distributions | ||||||
From Net | ||||||
Investment Income | (0.09) | (0.02) | (0.03) | (0.13) | (0.05) | (0.05) |
From Net Realized Gains | — | (0.79) | — | — | — | — |
Total Distributions | (0.09) | (0.81) | (0.03) | (0.13) | (0.05) | (0.05) |
Net Asset Value, | ||||||
End of Period | $8.09 | $7.13 | $14.81 | $12.12 | $9.71 | $8.75 |
Total Return(3) | 14.83% | (48.92)% | 22.48% | 26.39% | 11.58% | 16.92% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 1.91%(4) | 1.81% | 1.77% | 1.76% | 1.69%(5) | 1.76% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 1.74%(4) | 0.68% | 0.44% | 0.02% | 0.76%(5) | 0.07% |
Portfolio Turnover Rate | 73% | 144% | 133% | 95% | 89% | 118% |
Net Assets, End of Period | ||||||
(in thousands) | $4,240 | $2,727 | $4,042 | $2,106 | $1,809 | $376 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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) | 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. |
See Notes to Financial Statements.
59
Global Growth | ||||||
Investor Class | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(1) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $5.90 | $12.69 | $10.52 | $8.88 | $7.49 | $6.48 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | 0.03 | 0.04 | 0.03 | —(3) | —(3) | (0.01) |
Net Realized and | ||||||
Unrealized Gain (Loss) | 0.51 | (4.75) | 2.41 | 1.70 | 1.41 | 1.02 |
Total From | ||||||
Investment Operations | 0.54 | (4.71) | 2.44 | 1.70 | 1.41 | 1.01 |
Distributions | ||||||
From Net | ||||||
Investment Income | —(3) | — | (0.05) | (0.06) | (0.02) | — |
From Net Realized Gains | — | (2.08) | (0.22) | — | — | — |
Total Distributions | —(3) | (2.08) | (0.27) | (0.06) | (0.02) | — |
Net Asset Value, | ||||||
End of Period | $6.44 | $5.90 | $12.69 | $10.52 | $8.88 | $7.49 |
Total Return(4) | 9.18% | (44.01)% | 23.73% | 19.30% | 18.87% | 15.59% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 1.26%(5) | 1.26% | 1.30% | 1.31% | 1.30% | 1.30% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 1.08%(5) | 0.40% | 0.29% | (0.05)% | (0.01)% | (0.12)% |
Portfolio Turnover Rate | 54% | 121% | 108% | 95% | 36% | 79% |
Net Assets, End of Period | ||||||
(in thousands) | $291,845 | $274,599 | $481,553 | $418,185 | $378,976 | $299,807 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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. |
See Notes to Financial Statements.
60
Global Growth | ||||||
Institutional Class | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(1) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $5.97 | $12.79 | $10.60 | $8.95 | $7.55 | $6.52 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | 0.04 | 0.07 | 0.06 | 0.01 | 0.01 | —(3) |
Net Realized and | ||||||
Unrealized Gain (Loss) | 0.51 | (4.81) | 2.42 | 1.72 | 1.43 | 1.03 |
Total From | ||||||
Investment Operations | 0.55 | (4.74) | 2.48 | 1.73 | 1.44 | 1.03 |
Distributions | ||||||
From Net | ||||||
Investment Income | (0.01) | — | (0.07) | (0.08) | (0.04) | — |
From Net Realized Gains | — | (2.08) | (0.22) | — | — | — |
Total Distributions | (0.01) | (2.08) | (0.29) | (0.08) | (0.04) | — |
Net Asset Value, | ||||||
End of Period | $6.51 | $5.97 | $12.79 | $10.60 | $8.95 | $7.55 |
Total Return(4) | 9.28% | (43.88)% | 23.99% | 19.50% | 19.22% | 15.80% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 1.06%(5) | 1.05% | 1.10% | 1.11% | 1.10% | 1.10% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 1.28%(5) | 0.61% | 0.49% | 0.15% | 0.19% | 0.08% |
Portfolio Turnover Rate | 54% | 121% | 108% | 95% | 36% | 79% |
Net Assets, End of Period | ||||||
(in thousands) | $36,459 | $28,477 | $16,298 | $8,540 | $8,669 | $6,774 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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. |
See Notes to Financial Statements.
61
Global Growth | ||||||
A Class(1) | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(2) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $5.81 | $12.56 | $10.41 | $8.79 | $7.41 | $6.43 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | 0.02 | 0.01 | 0.01 | (0.03) | (0.02) | (0.02) |
Net Realized and | ||||||
Unrealized Gain (Loss) | 0.51 | (4.68) | 2.38 | 1.69 | 1.40 | 1.00 |
Total From | ||||||
Investment Operations | 0.53 | (4.67) | 2.39 | 1.66 | 1.38 | 0.98 |
Distributions | ||||||
From Net | ||||||
Investment Income | — | — | (0.02) | (0.04) | — | — |
From Net Realized Gains | — | (2.08) | (0.22) | — | — | — |
Total Distributions | — | (2.08) | (0.24) | (0.04) | — | — |
Net Asset Value, | ||||||
End of Period | $6.34 | $5.81 | $12.56 | $10.41 | $8.79 | $7.41 |
Total Return(4) | 9.12% | (44.17)% | 23.47% | 18.97% | 18.62% | 15.24% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 1.51%(5) | 1.51% | 1.55% | 1.56% | 1.55% | 1.55% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 0.83%(5) | 0.15% | 0.04% | (0.30)% | (0.26)% | (0.37)% |
Portfolio Turnover Rate | 54% | 121% | 108% | 95% | 36% | 79% |
Net Assets, End of Period | ||||||
(in thousands) | $27,553 | $22,447 | $18,402 | $5,571 | $3,664 | $2,475 |
(1) | Prior to September 4, 2007, the A Class was referred to as the Advisor Class. |
(2) | Six months ended May 31, 2009 (unaudited). |
(3) | Computed using average shares outstanding throughout the period. |
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. Total returns for periods less 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. |
See Notes to Financial Statements.
62
Global Growth | ||||
B Class | ||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||
2009(1) | 2008 | 2007 | 2006 | |
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $5.73 | $12.50 | $10.42 | $9.02 |
Income From Investment Operations | ||||
Net Investment Income (Loss)(2) | —(3) | (0.05) | (0.08) | (0.11) |
Net Realized and Unrealized Gain (Loss) | 0.50 | (4.64) | 2.38 | 1.57 |
Total From Investment Operations | 0.50 | (4.69) | 2.30 | 1.46 |
Distributions | ||||
From Net Investment Income | — | — | — | (0.06) |
From Net Realized Gains | — | (2.08) | (0.22) | — |
Total Distributions | — | (2.08) | (0.22) | (0.06) |
Net Asset Value, End of Period | $6.23 | $5.73 | $12.50 | $10.42 |
Total Return(4) | 8.73% | (44.62)% | 22.51% | 16.29% |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets | 2.26%(5) | 2.26% | 2.30% | 2.31% |
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.08%(5) | (0.60)% | (0.71)% | (1.05)% |
Portfolio Turnover Rate | 54% | 121% | 108% | 95% |
Net Assets, End of Period (in thousands) | $405 | $426 | $639 | $352 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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 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. |
See Notes to Financial Statements.
63
Global Growth | ||||||
C Class | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(1) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $5.54 | $12.16 | $10.14 | $8.59 | $7.29 | $6.37 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | —(3) | (0.05) | (0.07) | (0.10) | (0.08) | (0.08) |
Net Realized and | ||||||
Unrealized Gain (Loss) | 0.49 | (4.49) | 2.31 | 1.65 | 1.38 | 1.00 |
Total From | ||||||
Investment Operations | 0.49 | (4.54) | 2.24 | 1.55 | 1.30 | 0.92 |
Distributions | ||||||
From Net Realized Gains | — | (2.08) | (0.22) | — | — | — |
Net Asset Value, | ||||||
End of Period | $6.03 | $5.54 | $12.16 | $10.14 | $8.59 | $7.29 |
Total Return(4) | 8.84% | (44.64)% | 22.54% | 18.04% | 17.83% | 14.44% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 2.26%(5) | 2.26% | 2.30% | 2.31% | 2.30% | 2.30% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 0.08%(5) | (0.60)% | (0.71)% | (1.05)% | (1.01)% | (1.12)% |
Portfolio Turnover Rate | 54% | 121% | 108% | 95% | 36% | 79% |
Net Assets, End of Period | ||||||
(in thousands) | $2,278 | $2,382 | $2,625 | $1,050 | $454 | $184 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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 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. |
See Notes to Financial Statements.
64
Global Growth | |||||
R Class | |||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||
2009(1) | 2008 | 2007 | 2006 | 2005(2) | |
Per-Share Data | |||||
Net Asset Value, Beginning of Period | $5.82 | $12.62 | $10.47 | $8.86 | $8.37 |
Income From Investment Operations | |||||
Net Investment Income (Loss)(3) | 0.01 | (0.01) | 0.02 | (0.05) | (0.02) |
Net Realized and Unrealized Gain (Loss) | 0.52 | (4.71) | 2.35 | 1.71 | 0.51 |
Total From Investment Operations | 0.53 | (4.72) | 2.37 | 1.66 | 0.49 |
Distributions | |||||
From Net Investment Income | — | — | — | (0.05) | — |
From Net Realized Gains | — | (2.08) | (0.22) | — | — |
Total Distributions | — | (2.08) | (0.22) | (0.05) | — |
Net Asset Value, End of Period | $6.35 | $5.82 | $12.62 | $10.47 | $8.86 |
Total Return(4) | 9.11% | (44.40)% | 23.08% | 18.79% | 5.85% |
Ratios/Supplemental Data | |||||
Ratio of Operating Expenses | |||||
to Average Net Assets | 1.76%(5) | 1.76% | 1.80% | 1.81% | 1.80%(5) |
Ratio of Net Investment Income (Loss) | |||||
to Average Net Assets | 0.58%(5) | (0.10)% | (0.21)% | (0.55)% | (0.71)%(5) |
Portfolio Turnover Rate | 54% | 121% | 108% | 95% | 36%(6) |
Net Assets, End of Period (in thousands) | $257 | $253 | $202 | $32 | $26 |
(1) | Six months ended May 31, 2009 (unaudited). |
(2) | July 29, 2005 (commencement of sale) through November 30, 2005. |
(3) | Computed using average shares outstanding throughout the period. |
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. |
(5) | Annualized. |
(6) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2005. |
See Notes to Financial Statements.
65
Emerging Markets | ||||||
Investor Class | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(1) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $4.17 | $12.69 | $10.06 | $8.25 | $6.28 | $5.28 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | 0.01 | 0.09 | 0.10 | 0.11 | 0.01 | (0.01) |
Net Realized and | ||||||
Unrealized Gain (Loss) | 1.60 | (7.21) | 4.06 | 3.11 | 2.05 | 1.00 |
Total From | ||||||
Investment Operations | 1.61 | (7.12) | 4.16 | 3.22 | 2.06 | 0.99 |
Distributions | ||||||
From Net | ||||||
Investment Income | (0.03) | (0.10) | (0.13) | (0.05) | — | — |
From Net Realized Gains | — | (1.31) | (1.42) | (1.37) | (0.09) | — |
Total Distributions | (0.03) | (1.41) | (1.55) | (1.42) | (0.09) | — |
Redemption Fees(2) | —(3) | 0.01 | 0.02 | 0.01 | —(3) | 0.01 |
Net Asset Value, | ||||||
End of Period | $5.75 | $4.17 | $12.69 | $10.06 | $8.25 | $6.28 |
Total Return(4) | 38.50% | (62.66)% | 48.81% | 46.10% | 33.10% | 18.94% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 1.81%(5) | 1.66% | 1.66% | 1.80% | 1.94% | 2.00% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 0.36%(5) | 1.06% | 0.96% | 1.31% | 0.17% | (0.22)% |
Portfolio Turnover Rate | 85% | 121% | 85% | 115% | 153% | 208% |
Net Assets, End of Period | ||||||
(in thousands) | $432,985 | $316,695 | $1,070,138 | $523,813 | $220,720 | $135,355 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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. |
See Notes to Financial Statements.
66
Emerging Markets | ||||||
Institutional Class | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(1) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $4.26 | $12.92 | $10.21 | $8.36 | $6.35 | $5.33 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | 0.01 | 0.12 | 0.12 | 0.12 | 0.03 | —(3) |
Net Realized and | ||||||
Unrealized Gain (Loss) | 1.62 | (7.35) | 4.14 | 3.16 | 2.07 | 1.01 |
Total From | ||||||
Investment Operations | 1.63 | (7.23) | 4.26 | 3.28 | 2.10 | 1.01 |
Distributions | ||||||
From Net | ||||||
Investment Income | (0.03) | (0.13) | (0.15) | (0.07) | — | — |
From Net Realized Gains | — | (1.31) | (1.42) | (1.37) | (0.09) | — |
Total Distributions | (0.03) | (1.44) | (1.57) | (1.44) | (0.09) | — |
Redemption Fees(2) | —(3) | 0.01 | 0.02 | 0.01 | —(3) | 0.01 |
Net Asset Value, | ||||||
End of Period | $5.86 | $4.26 | $12.92 | $10.21 | $8.36 | $6.35 |
Total Return(4) | 38.74% | (62.63)% | 49.21% | 46.31% | 33.37% | 19.14% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 1.61%(5) | 1.46% | 1.46% | 1.60% | 1.74% | 1.80% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 0.56%(5) | 1.26% | 1.16% | 1.51% | 0.37% | (0.02)% |
Portfolio Turnover Rate | 85% | 121% | 85% | 115% | 153% | 208% |
Net Assets, End of Period | ||||||
(in thousands) | $39,042 | $27,235 | $74,897 | $85,886 | $113,765 | $92,673 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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. |
See Notes to Financial Statements.
67
Emerging Markets | ||||||
A Class(1) | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(2) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $4.07 | $12.40 | $9.85 | $8.11 | $6.19 | $5.22 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(3) | —(4) | 0.07 | 0.07 | 0.11 | (0.01) | (0.03) |
Net Realized and | ||||||
Unrealized Gain (Loss) | 1.57 | (7.03) | 3.99 | 3.02 | 2.02 | 0.99 |
Total From | ||||||
Investment Operations | 1.57 | (6.96) | 4.06 | 3.13 | 2.01 | 0.96 |
Distributions | ||||||
From Net | ||||||
Investment Income | (0.02) | (0.07) | (0.11) | (0.03) | — | — |
From Net Realized Gains | — | (1.31) | (1.42) | (1.37) | (0.09) | — |
Total Distributions | (0.02) | (1.38) | (1.53) | (1.40) | (0.09) | — |
Redemption Fees(3) | —(4) | 0.01 | 0.02 | 0.01 | —(4) | 0.01 |
Net Asset Value, | ||||||
End of Period | $5.62 | $4.07 | $12.40 | $9.85 | $8.11 | $6.19 |
Total Return(5) | 38.71% | (62.78)% | 48.61% | 45.59% | 32.77% | 18.58% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 2.06%(6) | 1.91% | 1.91% | 2.05% | 2.19% | 2.25% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 0.11%(6) | 0.81% | 0.71% | 1.06% | (0.08)% | (0.47)% |
Portfolio Turnover Rate | 85% | 121% | 85% | 115% | 153% | 208% |
Net Assets, End of Period | ||||||
(in thousands) | $21,704 | $17,105 | $36,795 | $9,905 | $1,773 | $1,178 |
(1) | Prior to September 4, 2007, the A Class was referred to as the Advisor Class. |
(2) | Six months ended May 31, 2009 (unaudited). |
(3) | Computed using average shares outstanding throughout the period. |
(4) | Per-share amount was less than $0.005. |
(5) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. Total returns for periods less less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. |
(6) | Annualized. |
See Notes to Financial Statements.
68
Emerging Markets | |||
B Class | |||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||
2009(1) | 2008 | 2007(2) | |
Per-Share Data | |||
Net Asset Value, Beginning of Period | $4.17 | $12.67 | $12.15 |
Income From Investment Operations | |||
Net Investment Income (Loss)(3) | (0.02) | 0.02 | (0.03) |
Net Realized and Unrealized Gain (Loss) | 1.61 | (7.24) | 0.53 |
Total From Investment Operations | 1.59 | (7.22) | 0.50 |
Distributions | |||
From Net Realized Gains | — | (1.29) | — |
Redemption Fees(3) | — | 0.01 | 0.02 |
Net Asset Value, End of Period | $5.76 | $4.17 | $12.67 |
Total Return(4) | 38.13% | (63.09)% | 4.28% |
Ratios/Supplemental Data | |||
Ratio of Operating Expenses to Average Net Assets | 2.81%(5) | 2.67% | 2.58%(5) |
Ratio of Net Investment Income (Loss) to Average Net Assets | (0.64)%(5) | 0.05% | (1.30)%(5) |
Portfolio Turnover Rate | 85% | 121% | 85%(6) |
Net Assets, End of Period (in thousands) | $135 | $113 | $54 |
(1) | Six months ended May 31, 2009 (unaudited). |
(2) | September 28, 2007 (commencement of sale) through November 30, 2007. |
(3) | Computed using average shares outstanding throughout the period. |
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. Total returns for periods less 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, 2007. |
See Notes to Financial Statements.
69
Emerging Markets | ||||||
C Class | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(1) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $3.96 | $12.10 | $9.64 | $7.95 | $6.12 | $5.19 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | (0.01) | 0.01 | (0.01) | 0.03 | (0.05) | (0.07) |
Net Realized and | ||||||
Unrealized Gain (Loss) | 1.52 | (6.87) | 3.90 | 2.99 | 1.97 | 0.99 |
Total From | ||||||
Investment Operations | 1.51 | (6.86) | 3.89 | 3.02 | 1.92 | 0.92 |
Distributions | ||||||
From Net | ||||||
Investment Income | — | — | (0.03) | — | — | — |
From Net Realized Gains | — | (1.29) | (1.42) | (1.34) | (0.09) | — |
Total Distributions | — | (1.29) | (1.45) | (1.34) | (0.09) | — |
Redemption Fees(2) | —(3) | 0.01 | 0.02 | 0.01 | —(3) | 0.01 |
Net Asset Value, | ||||||
End of Period | $5.47 | $3.96 | $12.10 | $9.64 | $7.95 | $6.12 |
Total Return(4) | 38.13% | (63.09)% | 47.39% | 44.59% | 31.67% | 17.92% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 2.81%(5) | 2.66% | 2.66% | 2.80% | 2.94% | 3.00% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | (0.64)%(5) | 0.06% | (0.04)% | 0.31% | (0.83)% | (1.22)% |
Portfolio Turnover Rate | 85% | 121% | 85% | 115% | 153% | 208% |
Net Assets, End of Period | ||||||
(in thousands) | $3,994 | $3,217 | $9,098 | $2,581 | $733 | $521 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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 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. |
See Notes to Financial Statements.
70
Emerging Markets | |||
R Class | |||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||
2009(1) | 2008 | 2007(2) | |
Per-Share Data | |||
Net Asset Value, Beginning of Period | $4.17 | $12.68 | $12.15 |
Income From Investment Operations | |||
Net Investment Income (Loss)(3) | —(4) | 0.05 | (0.01) |
Net Realized and Unrealized Gain (Loss) | 1.60 | (7.22) | 0.52 |
Total From Investment Operations | 1.60 | (7.17) | 0.51 |
Distributions | |||
From Net Investment Income | (0.01) | (0.04) | — |
From Net Realized Gains | — | (1.31) | — |
Total Distributions | (0.01) | (1.35) | — |
Redemption Fees(3) | —(4) | 0.01 | 0.02 |
Net Asset Value, End of Period | $5.76 | $4.17 | $12.68 |
Total Return(5) | 38.42% | (62.92)% | 4.36% |
Ratios/Supplemental Data | |||
Ratio of Operating Expenses to Average Net Assets | 2.31%(6) | 2.19% | 2.08%(6) |
Ratio of Net Investment Income (Loss) to Average Net Assets | (0.14)%(6) | 0.53% | (0.68)%(6) |
Portfolio Turnover Rate | 85% | 121% | 85%(7) |
Net Assets, End of Period (in thousands) | $370 | $144 | $27 |
(1) | Six months ended May 31, 2009 (unaudited). |
(2) | September 28, 2007 (commencement of sale) through November 30, 2007. |
(3) | Computed using average shares outstanding throughout the period. |
(4) | Per-share amount was less than $0.005. |
(5) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. |
(6) | Annualized. |
(7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2007. |
See Notes to Financial Statements.
71
International Value | ||||
Investor Class | ||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||
2009(1) | 2008 | 2007 | 2006(2) | |
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $5.47 | $11.48 | $14.36 | $12.85 |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.09 | 0.19 | 0.22 | 0.15 |
Net Realized and Unrealized Gain (Loss) | 0.69 | (5.18) | 2.09 | 1.36 |
Total From Investment Operations | 0.78 | (4.99) | 2.31 | 1.51 |
Distributions | ||||
From Net Investment Income | (0.13) | (0.24) | (0.47) | — |
From Net Realized Gains | — | (0.78) | (4.72) | — |
Total Distributions | (0.13) | (1.02) | (5.19) | — |
Net Asset Value, End of Period | $6.12 | $5.47 | $11.48 | $14.36 |
Total Return(4) | 14.37% | (47.43)% | 23.55% | 11.75% |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets | 1.30%(5) | 1.31% | 1.30% | 1.30%(5) |
Ratio of Net Investment Income (Loss) to Average Net Assets | 3.29%(5) | 2.20% | 1.96% | 2.77%(5)(6) |
Portfolio Turnover Rate | 5% | 4% | 11% | 17% |
Net Assets, End of Period (in thousands) | $2,972 | $2,512 | $3,044 | $437 |
(1) | Six months ended May 31, 2009 (unaudited). |
(2) | April 3, 2006 (commencement of sale) through November 30, 2006. |
(3) | Computed using average shares outstanding throughout the period. |
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. |
(5) | Annualized. |
(6) | 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.
72
International Value | ||||
Institutional Class | ||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||
2009(1) | 2008 | 2007 | 2006(2) | |
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $5.48 | $11.50 | $14.38 | $12.85 |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.09 | 0.21 | 0.23 | 0.25 |
Net Realized and Unrealized Gain (Loss) | 0.69 | (5.19) | 2.10 | 1.28 |
Total From Investment Operations | 0.78 | (4.98) | 2.33 | 1.53 |
Distributions | ||||
From Net Investment Income | (0.14) | (0.26) | (0.49) | — |
From Net Realized Gains | — | (0.78) | (4.72) | — |
Total Distributions | (0.14) | (1.04) | (5.21) | — |
Net Asset Value, End of Period | $6.12 | $5.48 | $11.50 | $14.38 |
Total Return(4) | 14.38% | (47.32)% | 23.77% | 11.91% |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets | 1.10%(5) | 1.11% | 1.10% | 1.10%(5) |
Ratio of Net Investment Income (Loss) to Average Net Assets | 3.49%(5) | 2.40% | 2.16% | 2.97%(5)(6) |
Portfolio Turnover Rate | 5% | 4% | 11% | 17% |
Net Assets, End of Period (in thousands) | $27,487 | $23,847 | $45,262 | $35,574 |
(1) | Six months ended May 31, 2009 (unaudited). |
(2) | April 3, 2006 (commencement of sale) through November 30, 2006. |
(3) | Computed using average shares outstanding throughout the period. |
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. |
(5) | Annualized. |
(6) | 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 | |||||||
A Class | |||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||
2009(1) | 2008 | 2007 | 2006(2) | 2006 | 2005 | 2004 | |
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $5.48 | $11.49 | $14.35 | $12.70 | $10.91 | $9.64 | $6.22 |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.08 | 0.18 | 0.20 | 0.25 | 0.18 | 0.13 | 0.10 |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.68 | (5.20) | 2.11 | 1.40 | 1.97 | 1.37 | 3.42 |
Total From | |||||||
Investment Operations | 0.76 | (5.02) | 2.31 | 1.65 | 2.15 | 1.50 | 3.52 |
Distributions | |||||||
From Net | |||||||
Investment Income | (0.11) | (0.21) | (0.45) | — | (0.15) | (0.11) | (0.10) |
From Net Realized Gains | — | (0.78) | (4.72) | — | (0.21) | (0.12) | — |
Total Distributions | (0.11) | (0.99) | (5.17) | — | (0.36) | (0.23) | (0.10) |
Net Asset Value, End of Period | $6.13 | $5.48 | $11.49 | $14.35 | $12.70 | $10.91 | $9.64 |
Total Return(4) | 14.07% | (47.53)% | 23.44% | 12.99% | 19.95% | 15.58% | 56.65% |
Ratios/Supplemental Data | |||||||
Ratio of Operating Expenses | |||||||
to Average Net Assets | 1.55%(5) | 1.51%(6) | 1.40%(6) | 1.40%(5)(6) | 1.35% | 1.41% | 1.47% |
Ratio of Operating Expenses | |||||||
to Average Net Assets | |||||||
(Before Expense Waiver) | 1.55%(5) | 1.56% | 1.55% | 1.55%(5) | 1.35% | 1.41% | 1.47% |
Ratio of Net Investment Income | |||||||
(Loss) to Average Net Assets | 3.04%(5) | 2.00%(6) | 1.86%(6) | 2.67%(5)(6)(7) | 1.52% | 1.28% | 1.13% |
Ratio of Net Investment Income | |||||||
(Loss) to Average Net Assets | |||||||
(Before Expense Waiver) | 3.04%(5) | 1.95% | 1.71% | 2.52%(5)(7) | 1.52% | 1.28% | 1.13% |
Portfolio Turnover Rate | 5% | 4% | 11% | 17% | 7% | 18% | 10% |
Net Assets, End of Period | |||||||
(in thousands) | $15,662 | $15,015 | $24,558 | $19,890 | $54,617 | $203,215 | $174,387 |
(1) | Six months ended May 31, 2009 (unaudited). |
(2) | 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. |
(3) | Computed using average shares outstanding throughout the period. |
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. Total returns for periods less 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) | The distributor voluntarily waived a portion of its distribution and service fees from April 1, 2006 through March 31, 2008. |
(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.
74
International Value | |||||||
B Class | |||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||
2009(1) | 2008 | 2007 | 2006(2) | 2006 | 2005 | 2004 | |
Per-Share Data | |||||||
Net Asset Value, | |||||||
Beginning of Period | $5.32 | $11.16 | $14.08 | $12.51 | $10.75 | $9.52 | $6.14 |
Income From | |||||||
Investment Operations | |||||||
Net Investment | |||||||
Income (Loss)(3) | 0.05 | 0.11 | 0.12 | 0.17 | 0.10 | 0.06 | 0.04 |
Net Realized and | |||||||
Unrealized Gain (Loss) | 0.66 | (5.05) | 2.05 | 1.40 | 1.93 | 1.34 | 3.39 |
Total From | |||||||
Investment Operations | 0.71 | (4.94) | 2.17 | 1.57 | 2.03 | 1.40 | 3.43 |
Distributions | |||||||
From Net Investment Income | (0.07) | (0.12) | (0.37) | — | (0.06) | (0.05) | (0.05) |
From Net Realized Gains | — | (0.78) | (4.72) | — | (0.21) | (0.12) | — |
Total Distributions | (0.07) | (0.90) | (5.09) | — | (0.27) | (0.17) | (0.05) |
Net Asset Value, End of Period | $5.96 | $5.32 | $11.16 | $14.08 | $12.51 | $10.75 | $9.52 |
Total Return(4) | 13.46% | (47.84)% | 22.51% | 12.55% | 19.07% | 14.69% | 55.86% |
Ratios/Supplemental Data | |||||||
Ratio of Operating Expenses | |||||||
to Average Net Assets | 2.30%(5) | 2.22%(6) | 2.09%(6) | 2.09%(5)(6) | 2.08% | 2.09% | 2.11% |
Ratio of Operating Expenses | |||||||
to Average Net Assets | |||||||
(Before Expense Waiver) | 2.30%(5) | 2.31% | 2.30% | 2.30%(5) | 2.08% | 2.09% | 2.11% |
Ratio of Net Investment Income | |||||||
(Loss) to Average Net Assets | 2.29%(5) | 1.29%(6) | 1.17%(6) | 1.98%(5)(6)(7) | 0.90% | 0.61% | 0.52% |
Ratio of Net Investment Income | |||||||
(Loss) to Average Net Assets | |||||||
(Before Expense Waiver) | 2.29%(5) | 1.20% | 0.96% | 1.77%(5)(7) | 0.90% | 0.61% | 0.52% |
Portfolio Turnover Rate | 5% | 4% | 11% | 17% | 7% | 18% | 10% |
Net Assets, End of Period | |||||||
(in thousands) | $1,348 | $1,526 | $4,059 | $4,313 | $4,917 | $5,165 | $4,491 |
(1) | Six months ended May 31, 2009 (unaudited). |
(2) | 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. |
(3) | Computed using average shares outstanding throughout the period. |
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. Total returns for periods less 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) | The distributor voluntarily waived a portion of its distribution and service fees from April 1, 2006 through March 31, 2008. |
(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 | ||||
C Class | ||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||
2009(1) | 2008 | 2007 | 2006(2) | |
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $5.42 | $11.37 | $14.27 | $12.85 |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.07 | 0.12 | 0.12 | 0.14 |
Net Realized and Unrealized Gain (Loss) | 0.66 | (5.17) | 2.07 | 1.28 |
Total From Investment Operations | 0.73 | (5.05) | 2.19 | 1.42 |
Distributions | ||||
From Net Investment Income | (0.07) | (0.12) | (0.37) | — |
From Net Realized Gains | — | (0.78) | (4.72) | — |
Total Distributions | (0.07) | (0.90) | (5.09) | — |
Net Asset Value, End of Period | $6.08 | $5.42 | $11.37 | $14.27 |
Total Return(4) | 13.59% | (47.93)% | 22.28% | 11.05% |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets | 2.30%(5) | 2.31% | 2.30% | 2.30%(5) |
Ratio of Net Investment Income (Loss) to Average Net Assets | 2.29%(5) | 1.20% | 0.96% | 1.77%(5)(6) |
Portfolio Turnover Rate | 5% | 4% | 11% | 17% |
Net Assets, End of Period (in thousands) | $576 | $337 | $222 | $41 |
(1) | Six months ended May 31, 2009 (unaudited). |
(2) | April 3, 2006 (commencement of sale) through November 30, 2006. |
(3) | Computed using average shares outstanding throughout the period. |
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. Total returns for periods less than one year are not annualized. 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) | 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 | ||||
R Class | ||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||
2009(1) | 2008 | 2007 | 2006(2) | |
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $5.45 | $11.42 | $14.31 | $12.85 |
Income From Investment Operations | ||||
Net Investment Income (Loss)(3) | 0.08 | 0.13 | 0.11 | 0.19 |
Net Realized and Unrealized Gain (Loss) | 0.67 | (5.14) | 2.14 | 1.27 |
Total From Investment Operations | 0.75 | (5.01) | 2.25 | 1.46 |
Distributions | ||||
From Net Investment Income | (0.10) | (0.18) | (0.42) | — |
From Net Realized Gains | — | (0.78) | (4.72) | — |
Total Distributions | (0.10) | (0.96) | (5.14) | — |
Net Asset Value, End of Period | $6.10 | $5.45 | $11.42 | $14.31 |
Total Return(4) | 13.87% | (47.61)% | 22.91% | 11.36% |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets | 1.80%(5) | 1.81% | 1.80% | 1.80%(5) |
Ratio of Net Investment Income (Loss) to Average Net Assets | 2.79%(5) | 1.70% | 1.46% | 2.27%(5)(6) |
Portfolio Turnover Rate | 5% | 4% | 11% | 17% |
Net Assets, End of Period (in thousands) | $109 | $78 | $202 | $28 |
(1) | Six months ended May 31, 2009 (unaudited). |
(2) | April 3, 2006 (commencement of sale) through November 30, 2006. |
(3) | Computed using average shares outstanding throughout the period. |
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. |
(5) | Annualized. |
(6) | 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
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs, or 403(b), 457 and qualified plans are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. You have the right to revoke your withholding election at any time and any election you make may remain in effect until revoked by filing a new election.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld. State taxes will be withheld from your distribution in accordance with the respective state rules.
Proxy Voting Guidelines
American Century 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 Investments’ website at americancentury.com and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the “About Us” page at americancentury.com. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The funds’ Forms N-Q are available on the SEC’s website at sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The funds also make their complete schedule of portfolio holdings for the most recent quarter of their fiscal year available on their website at americancentury.com and, upon request, by calling 1-800-345-2021.
78
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 performance of stocks in global emerging market countries.
The MSCI EM Growth Index represents the performance of growth 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.
79
Notes |
80
Notes |
81
Notes |
82
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Contact Us | |
americancentury.com | |
Automated Information Line | 1-800-345-8765 |
Investor Services Representative | 1-800-345-2021 or |
816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 |
Business, Not-For-Profit, Employer-Sponsored | |
Retirement Plans | 1-800-345-3533 |
Banks and Trust Companies, Broker-Dealers, | |
Financial Professionals, Insurance Companies | 1-800-345-6488 |
Telecommunications Device for the Deaf | 1-800-634-4113 |
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
©2009 American Century Proprietary Holdings, Inc. All rights reserved.
0907 CL-SAN-65838N-SUP
Semiannual Report |
May 31, 2009 |
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65839x1x1.jpg)
American Century Investments |
International Stock Fund
International Discovery Fund
International Opportunities Fund
International Discovery Fund
International Opportunities Fund
President’s Letter |
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Dear Investor:
Thank you for investing with us during the financial reporting period ended May 31, 2009. We appreciate your trust in American Century Investments® during these challenging times.
The U.S. economy continued to struggle at the close of the reporting period, part of the lingering fallout from the subprime-initiated credit and financial crises and global recession that shook the capital markets during the past two years. The recession has affected everyone—from first-time individual investors to hundred-year-old financial institutions.
However, as we mark the second anniversary of the start of the subprime mortgage meltdown, the worst of the economic and financial market obstacles appear to be behind us. The rate of U.S. economic decline has slowed, as have the drop-offs in housing prices and jobs. Risk appetites returned to the markets in recent months, evidenced by the strong stock rebound since early March.
Risk was a predominant theme during the reporting period, as the investment pendulum swung from risk avoidance to risk acceptance. We believe, however, that caution and risk management are still advisable. We don’t think we’re out of the economic woods yet, not with mortgage and corporate default rates on the rise, housing prices still declining, and job losses still mounting.
Effective risk management requires a commitment to disciplined investment approaches that balance risk and reward, with the goal of setting and maintaining risk levels that are appropriate for portfolio objectives. At American Century Investments, we’ve stayed true to the principles that have guided us for over 50 years, including our commitment to delivering superior investment performance and helping investors reach their financial goals. Risk management is part of that commitment—we offer portfolios that can help diversify and stabilize investment returns.
The coming months will likely present additional challenges, but I’m certain that we have the investment professionals and processes in place to provide competitive and compelling long-term results for you. Thank you for your continued confidence in us.
Sincerely,
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65839x2x2.jpg)
Jonathan S. Thomas
President and Chief Executive Officer
American Century Investments
President and Chief Executive Officer
American Century Investments
Independent Chairman’s Letter |
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I am Don Pratt, an independent director and chairman of the mutual fund board responsible for the U.S. Growth Equity, U.S. Value Equity, Global and Non-U.S. Equity and Asset Allocation funds managed by American Century Investments. The board consists of seven independent directors and two directors who are affiliated with the investment advisor.
As one of your independent shareholder representatives on the fund board, I plan to write you from time to time with updates on board activities and news about your funds. My co-independent directors and I are committed to putting your interests first. We work closely with American Century Investments on maintaining strong fund performance, providing quality service to shareholders at competitive fees and ensuring ethical business practices and compliance with all applicable fund regulations.
Last year, the board welcomed its newest independent director, John R. Whitten He is a great addition to an experienced board where, collectively, the independent directors have served the funds for more than 76 years. This continuity served shareholders well as the investment advisor initiated a successful management transition, creating a strong senior leadership team consisting of well-tenured company executives and experienced industry veterans. Under the leadership of President and Chief Executive Officer Jonathan Thomas and Chief Investment Officer Enrique Chang, the firm has made the achievement of superior investment performance its primary focus and the key driver of its success going forward. This focus helped the company generate strong relative performance against the backdrop of 2008’s unprecedented market volatility.
As investors in the American Century funds, my fellow directors and I share your investing experience. We know firsthand how decisions made at the board level affect all shareholders. To further guide our efforts on your behalf, I invite you to send me your comments, questions or suggestions by email to dhpratt@fundboardchair.com. Thank you for allowing me to serve as your advocate on our board.
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65839x3x2.jpg)
Table of Contents |
Market Perspective | 2 |
International Equity Total Returns | 2 |
International Stock | |
Performance | 3 |
Portfolio Commentary | 5 |
Top Ten Holdings | 7 |
Types of Investments in Portfolio | 7 |
Investments by Country | 7 |
International Discovery | |
Performance | 8 |
Portfolio Commentary | 10 |
Top Ten Holdings | 12 |
Types of Investments in Portfolio | 12 |
Investments by Country | 12 |
International Opportunities | |
Performance | 13 |
Portfolio Commentary | 15 |
Top Ten Holdings | 17 |
Types of Investments in Portfolio | 17 |
Investments by Country | 17 |
Shareholder Fee Examples | 18 |
Financial Statements | |
Schedule of Investments | 20 |
Statement of Assets and Liabilities | 30 |
Statement of Operations | 31 |
Statement of Changes in Net Assets | 32 |
Notes to Financial Statements | 34 |
Financial Highlights | 42 |
Other Information | |
Additional Information | 48 |
Index Definitions | 49 |
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 Investments or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Market Perspective |
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65839x6x1.jpg)
By Mark Kopinski, Chief Investment Officer, Global and Non-U.S. Equity
Stock Performance Made a U-Turn
The global economic slowdown and ongoing credit crisis weighed heavily on the world’s equity markets for the first half of the period, as import and export volumes plummeted, industrial output shrank, and unemployment soared. As a result, stocks remained on the downward track triggered by last fall’s near-collapse of the global financial system.
Midway through the period, however, investor confidence and stock market performance showed an abrupt and surprising rebound. After hitting multi-year lows on March 9, global stocks rallied sharply to finish the six-month period with strong gains. The rebound was triggered by a belief that the global financial system was no longer in imminent danger of collapse.
Prominent central banks, including those in the United States, United Kingdom, and Japan, helped steady investor confidence by launching debt-purchase programs aimed at taming interest rates. Additionally, easy monetary and fiscal policies, including $2.1 trillion in stimulus programs targeting infrastructure development and consumer demand, contributed to improved investor sentiment. Nevertheless, GDP growth remained negative. Shrinking exports weighed on Germany’s economy, where manufacturing output sagged and the unemployment rate climbed. Likewise, reduced output and a deteriorating jobs environment darkened economic prospects for France and the United Kingdom, suggesting an uneven recovery at best.
Emerging Markets Gained as “Riskier” Assets Returned to Favor
With renewed confidence in equities, investors shifted funds toward assets considered “riskier.” Additionally, an uptick in commodity prices coupled with monetary and fiscal stimulus provided support to domestic growth in these economies. As a result, emerging equities performed exceptionally well, reversing some of last year’s significant declines. In China, optimism about the country’s large domestic-oriented stimulus plan helped propel the Shanghai Composite higher, even as declining global export levels remained a concern.
Economic growth seems likely to improve in the second half of the year. However, the economic recovery may not be as robust as the financial markets have discounted. A tug of war between bulls and bears may best characterize the second half of the year.
International Equity Total Returns | ||||
For the six months ended May 31, 2009 (in U.S. dollars)* | ||||
MSCI EM Index | 48.62% | MSCI EAFE Index | 15.10% | |
MSCI EM Growth Index | 48.09% | MSCI World Free Index | 10.26% | |
MSCI EAFE Growth Index | 13.26% | MSCI EAFE Value Index | 16.96% | |
MSCI Europe Index | 14.90% | MSCI Japan Index | 9.01% | |
*Total returns for periods less than one year are not annualized. |
2
Performance | ||||
International Stock | ||||
Total Returns as of May 31, 2009 | ||||
Average Annual | ||||
Returns | ||||
Since | Inception | |||
6 months(1) | 1 year | Inception | Date | |
Investor Class | 14.51% | -39.21% | -0.36% | 3/31/05 |
MSCI EAFE Index | 15.10% | -36.61% | -0.44% | — |
(1) 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.
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
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One-Year Returns Over Life of Class | |||||
Periods ended May 31 | |||||
2005* | 2006 | 2007 | 2008 | 2009 | |
Investor Class | -2.10% | 25.91% | 25.99% | 4.34% | -39.21% |
MSCI EAFE Index | -2.30% | 28.24% | 26.84% | -2.53% | -36.61% |
*From 3/31/05, the Investor Class’s inception date. Not annualized. | |||||
Total Annual Fund Operating Expenses | |
Investor Class | 1.51% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. 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 Raj Gandhi
Performance Summary
The International Stock portfolio gained 14.51%* for the six months ended May 31, 2009, compared with its benchmark, the MSCI EAFE Index, which advanced 15.10%.
The reporting period began with international stocks suffering the effects of a severe global recession and financial-sector crisis. In early March, stocks plunged to new current-cycle lows, as rising unemployment, shrinking industrial output, and negative economic growth rates sent investor confidence tumbling. Market sentiment and performance reversed course quickly, though, as the numerous and unprecedented actions from global central banks and governments sparked optimism among investors. As a result, stocks rebounded sharply in the second half of the reporting period, to finish the six months with solid gains.
On an absolute basis, all sectors and nearly every country represented in the portfolio and benchmark posted positive returns for the six-month period. Sector allocations accounted for the portfolio’s slight underperformance relative to the benchmark.
France Led Detractors; Italy Topped Contributors
From a country perspective, the portfolio’s holdings in France detracted the most from relative results, followed by positions in Germany and Sweden. Stock selection was the culprit in France and Germany, while an underweight hurt relative performance in Sweden.
At the opposite end of the performance spectrum, Italy made the greatest contribution to portfolio performance. In addition, the portfolio’s performance benefited from our portfolio-only position in Canada and our holdings in the United Kingdom, the portfolio’s largest country weighting.
Canada’s Research In Motion (RIM), the developer of the BlackBerry wireless device, was the portfolio’s top performer for the period. Sales of the company’s touch-screen BlackBerry Storm device, RIM’s answer to Apple’s iPhone, gained traction after RIM resolved several software issues.
*Total returns for periods less than one year are not annualized.
5
International Stock
Materials Sector Lagged
Materials Sector Lagged
The materials sector represented the portfolio’s largest performance detractor. Our underweight combined with negative stock selection in the metals and mining industry accounted for the bulk of the sector’s underperformance.
Although our overweight to the consumer discretionary sector yielded positive performance, our stock selection—particularly in the textiles, apparel, and luxury goods segment—led to overall lagging results on a relative basis. Similarly, our positive stock selection in the financials sector was offset by negative results from our underweight to the sector—particularly in the capital markets industry.
Energy, Technology Outperform
The top contributors to the portfolio’s relative performance included the energy and information technology sectors. The outperformance primarily was due to stock selection, but our allocations (overweight technology, underweight energy) also helped.
After falling in the first half of the reporting period, oil prices skyrocketed later in the six-month period, and this helped push select energy stocks higher. Our energy holdings showed strong results, led by our overweighted position in Italy’s Saipem, an oil and gas services company.
In addition to the strong results from technology holding RIM, the portfolio benefited from good stock selection in the computer and peripherals area.
Outlook
International Stock primarily invests in companies located in developed countries around the world, excluding the United States. Although we expect further volatility throughout the international stock markets, we will continue to focus on finding companies with sustainable growth characteristics and promising long-term outlooks.
6
International Stock | ||
Top Ten Holdings as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
BG Group plc | 2.0% | 2.5% |
ENI SpA | 1.9% | 2.3% |
Nestle SA | 1.8% | 2.3% |
Saipem SpA | 1.8% | 1.2% |
Banco Santander SA | 1.8% | 1.1% |
BHP Billiton Ltd. | 1.6% | 1.1% |
Koninklijke Ahold NV | 1.6% | 1.4% |
Total SA | 1.5% | 2.1% |
iShares MSCI Japan Index Fund | 1.5% | 1.6% |
Muenchener Rueckversicherungs-Gesellschaft AG | 1.5% | 1.6% |
Types of Investments in Portfolio | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Foreign Common Stocks & Rights | 98.8% | 99.9% |
Temporary Cash Investments | 0.6% | 0.3% |
Other Assets and Liabilities | 0.6% | (0.2)% |
Investments by Country as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
United Kingdom | 18.4% | 22.9% |
Japan | 13.8% | 15.1% |
Switzerland | 10.3% | 10.9% |
Germany | 6.7% | 7.0% |
France | 6.1% | 8.1% |
Italy | 5.0% | 4.3% |
Australia | 4.2% | 4.5% |
Spain | 3.4% | 3.7% |
People’s Republic of China | 2.9% | 1.0% |
Canada | 2.8% | 3.4% |
South Korea | 2.7% | 0.3% |
Brazil | 2.6% | 1.7% |
Ireland | 2.3% | 1.0% |
Netherlands | 2.1% | 3.2% |
Other Countries | 15.5% | 12.8% |
Cash and Equivalents* | 1.2% | 0.1% |
*Includes temporary cash investments and other assets and liabilities. |
7
Performance | ||||||
International Discovery | ||||||
Total Returns as of May 31, 2009 | ||||||
Average Annual Returns | ||||||
Since | Inception | |||||
6 months(1) | 1 year | 5 years | 10 years | Inception | Date | |
Investor Class | 16.58% | -45.25% | 4.85% | 6.90% | 10.71% | 4/1/94 |
MSCI AC World ex-US | ||||||
Mid Cap Growth Index | 25.28% | -39.84% | 4.10% | 1.85% | N/A(2) | — |
Institutional Class | 16.60% | -45.16% | 5.06% | 7.10% | 8.78% | 1/2/98 |
Advisor Class | 16.32% | -45.44% | 4.58% | 6.63% | 6.52% | 4/28/98 |
(1) | Total returns for periods less than one year are not annualized. |
(2) | Benchmark data first available June 1994. |
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. Historically, small company stocks have been more volatile than the stocks of larger, more established companies. 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.
8
International Discovery
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One-Year Returns Over 10 Years | ||||||||||
Periods ended May 31 | ||||||||||
2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | |
Investor Class | 63.12% | -20.05% | -7.80% | -8.75% | 40.25% | 9.25% | 58.75% | 30.29% | 2.43% | -45.25% |
MSCI AC World | ||||||||||
ex-US Mid Cap | ||||||||||
Growth Index | 27.56% | -30.19% | -9.75% | -12.63% | 39.90% | 17.13% | 35.27% | 32.41% | -3.15% | -39.84% |
Total Annual Fund Operating Expenses | |||
Investor Class | Institutional Class | Advisor Class | |
1.53% | 1.33% | 1.78% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. Historically, small company stocks have been more volatile than the stocks of larger, more established companies. 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.
9
Portfolio Commentary |
International Discovery |
Portfolio Managers: Mark Kopinski and Brian Brady
Performance Summary
The International Discovery portfolio gained 16.58%* for the six months ended May 31, 2009, underperforming its benchmark, the MSCI AC World ex-US Mid Cap Growth Index, which advanced 25.28%.
The reporting period began with international stocks suffering the effects of a severe global recession and financial-sector crisis. In early March, stocks plunged to new current-cycle lows, as rising unemployment, shrinking industrial output, and negative economic growth rates sent investor confidence tumbling. Market sentiment and performance reversed course quickly, though, as the numerous and unprecedented actions from global central banks and governments sparked optimism among investors. Stocks rebounded sharply in the second half of the reporting period, to finish the six months with solid gains. Emerging market stocks significantly outperformed their developed-market counterparts, as rising commodity prices in the second half of the reporting period helped boost performance among the natural resources-rich developing markets.
The strong rally that propelled stocks in the second half of the reporting period was primarily driven by former market laggards. In general, these companies outperformed even the higher-quality companies that had been reporting strong earnings growth—the type of companies we tend to favor in our portfolio. This factor accounted for the bulk of the portfolio’s performance shortfall relative to the benchmark.
Japan Led Detractors
From a country perspective, exposure in Japan detracted the most from relative results. Our underweight position helped, but it wasn’t enough to offset the negative impact of stock selection. In addition, our positions in Canada and Spain detracted from performance. Stock selection hurt in Canada, while stock selection combined with an overweighted position were negative influences in Spain.
At the opposite end of the performance spectrum, our positions in China, Brazil, and Norway made the greatest contributions to the portfolio’s relative performance. In each country, stock selection was effective, but our overweighted positions accounted for the bulk of the outperformance.
Consumer, Industrials Stocks Disappointed
The portfolio’s consumer discretionary, industrials, and materials sectors represented the largest detractors to relative performance. In the consumer discretionary sector, stock selection was the primary detractor. In particular, Canadian T-shirt maker Gildan Activewear, the portfolio’s weakest holding,
*All fund returns referenced in this commentary are for Investor Class shares. Total returns for periods less than one year are not annualized.
10
International Discovery
tumbled after reporting soft North American demand, which prompted a cut in its full-year profit outlook. Despite the near-term gloom, the company planned to increase production in 2009 in an effort to take market share from weaker competitors.
Stock selection also was the key detractor in the industrials sector. Our portfolio-only position in VT Group, a British defense and services company, was among the portfolio’s worst performers. In addition, Japan’s Nissha Printing Co., an industrial printing company, detracted from results, as the company lowered its fiscal-year profit outlook.
Energy Stocks Outperformed
The top contributors to the portfolio’s relative performance included the energy and information technology sectors. The outperformance primarily was due to stock selection, but our overweight allocations also helped.
After falling in the first half of the reporting period, oil prices skyrocketed later in the six-month period, and this helped push select energy stocks higher. Our energy equipment and services companies showed strong results, led by our overweighted position in Seadrill, an offshore drilling company.
Performance in the information technology sector was led by Shanda Interactive Entertainment, a China-based online game operator. The company’s stock rallied after Shanda reported a sharp rise in net income. Additionally, the company successfully integrated several acquisitions during the past two years, and it has developed a strong pipeline of interactive games it expects to launch by 2012.
The portfolio’s financials sector also outperformed, led by Brazil’s BM&FBOVESPA, the company that operates Brazil’s main securities exchanges. The stock was the portfolio’s top performer for the six-month period, advancing on record trading volumes.
Outlook
International Discovery primarily invests in small- to medium-sized companies located around the world (excluding the United States). Although we expect additional short-term volatility in the international equity markets, we will continue to focus on finding companies we believe have a high likelihood of growing earnings and revenues at improving rates.
11
International Discovery | ||
Top Ten Holdings as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Seadrill Ltd. | 3.1% | 1.4% |
BM&FBOVESPA SA | 2.7% | — |
Tullow Oil plc | 2.5% | — |
Vedanta Resources plc | 2.4% | — |
Lonza Group AG | 2.3% | 2.3% |
Precision Drilling Trust | 1.9% | — |
Melco Crown Entertainment Ltd. ADR | 1.9% | — |
First Quantum Minerals Ltd. | 1.8% | — |
Man Group plc | 1.8% | — |
Shanda Interactive Entertainment Ltd. ADR | 1.7% | — |
Types of Investments in Portfolio | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Foreign Common Stocks | 98.3% | 97.4% |
Temporary Cash Investments | 0.3% | 2.4% |
Other Assets and Liabilities | 1.4% | 0.2% |
Investments by Country as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
United Kingdom | 16.5% | 20.3% |
Japan | 15.9% | 24.7% |
People’s Republic of China | 7.8% | 4.7% |
Switzerland | 5.6% | 6.1% |
Canada | 5.6% | 8.2% |
Hong Kong | 5.5% | 1.9% |
Taiwan (Republic of China) | 5.3% | 1.4% |
Brazil | 5.1% | 1.3% |
Germany | 3.8% | — |
Bermuda | 3.1% | 3.6% |
Australia | 3.1% | 5.6% |
Greece | 2.3% | 0.2% |
Netherlands | 2.1% | 1.8% |
India | 2.0% | — |
Other Countries | 14.6% | 17.6% |
Cash and Equivalents* | 1.7% | 2.6% |
*Includes temporary cash investments and other assets and liabilities. |
12
Performance | |||||
International Opportunities | |||||
Total Returns as of May 31, 2009 | |||||
Average Annual Returns | |||||
Since | Inception | ||||
6 months(1) | 1 year | 5 years | Inception | Date | |
Investor Class | 21.89% | -38.97% | 5.77% | 11.20% | 6/1/01 |
MSCI AC World ex-US | |||||
Small Cap Growth Index | 35.50% | -37.51% | 4.47% | 4.96%(2) | — |
Institutional Class | 22.31% | -38.76% | 6.03% | 15.14% | 1/9/03 |
(1) | Total returns for periods less than one year are not annualized. |
(2) | 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. Historically, small company stocks have been more volatile than the stocks of larger, more established companies. 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.
13
International Opportunities
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65839x18x1.jpg)
One-Year Returns Over Life of Class | ||||||||
Periods ended May 31 | ||||||||
2002* | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | |
Investor Class | 15.00% | -5.48% | 62.50% | 22.00% | 46.95% | 33.53% | -9.36% | -38.97% |
MSCI AC World ex-US Small | ||||||||
Cap Growth | -7.91% | -9.72% | 42.42% | 18.46% | 37.58% | 29.37% | -5.56% | -37.51% |
*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. |
Total Annual Fund Operating Expenses | ||
Investor Class | Institutional Class | |
1.98% | 1.78% | |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. Historically, small company stocks have been more volatile than the stocks of larger, more established companies. 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.
14
Portfolio Commentary |
International Opportunities |
Portfolio Managers: Mark Kopinski and Trevor Gurwich
Performance Summary
The International Opportunities portfolio gained 21.89%* for the six months ended May 31, 2009, underperforming its benchmark, the MSCI AC World ex-US Small Cap Growth Index, which advanced 35.50%.
The reporting period began with international stocks suffering the effects of a severe global recession and financial-sector crisis. In early March, stocks plunged to new current-cycle lows, as rising unemployment, shrinking industrial output, and negative economic growth rates sent investor confidence tumbling. Market sentiment and performance reversed course quickly, though, as the numerous and unprecedented actions from global central banks and governments sparked optimism among investors. Stocks rebounded sharply in the second half of the reporting period, to finish the six months with solid gains. Emerging market stocks significantly outperformed their developed-market counterparts, as rising commodity prices in the second half of the reporting period helped boost performance among the natural resources-rich developing markets.
The strong rally that propelled stocks in the second half of the reporting period was primarily driven by former market laggards. In general, these companies outperformed even the higher-quality companies that had been reporting strong earnings growth–the type of companies we tend to favor in our portfolio. This factor accounted for the bulk of the portfolio’s performance shortfall relative to the benchmark
Japan, U.K. Led Country Detractors
From a country perspective, Japan, the portfolio’s largest-weighted country during the period, was the weakest performer. As the Japanese economy deteriorated, several Japan-based companies detracted considerably from performance. In addition, the United Kingdom, the portfolio’s second-largest country position during the period, and Australia posted lagging results. Stock selection was the culprit in each country.
At the opposite end of the performance spectrum, the developing markets of China, India, and Israel made the greatest positive contributions to the portfolio’s relative performance, reflecting the overall stronger results from emerging market stocks. China National Building Material, a China-based cement firm, was among the portfolio’s top performers. The company reported healthy order volumes, as the Chinese government directed stimulus funds toward road and rail projects. The company, a portfolio-only holding, also focused on stabilizing its financial foundation, as it completed a successful share offering, secured a four-year line of credit, and explored sale-leaseback options on its construction equipment.
*All fund returns referenced in this commentary are for Investor Class shares. Total returns for periods less than one year are not annualized.
15
International Opportunities
Industrials, Technology Stocks Lagged
Industrials, Technology Stocks Lagged
On an absolute basis, all sectors in the portfolio posted positive total returns for the period. Compared with the benchmark, though, only our utilities sector outperformed, primarily due to our portfolio-only position in India’s GVK Power & Infrastructure, an urban infrastructure company.
The industrials, information technology, and energy sectors represented the portfolio’s weakest contributors, due to negative stock selection. In the industrials sector, Japan’s Nissha Printing, an industrial printing company, led the portfolio’s overall detractors, as the company lowered its fiscal-year profit outlook. Additionally, Japan’s Aeon Delight, a building maintenance services company for shopping malls, was also among the portfolio’s worst performers. The company announced its fiscal-year-end results would include a large loss due to the write-down of select securities.
Poor performance in the portfolio’s information technology sector primarily was due to ineffective stock selection among semiconductor and software companies. In the energy sector, our stock picks in the energy equipment and services industry drove the portfolio’s negative results.
Outlook
International Opportunities primarily invests in small-capitalization companies located around the world (excluding the United States). Although we expect to encounter continued volatility in the short term, the International Opportunities team will continue to focus on finding companies we believe exhibit a high likelihood of growing earnings and revenues at improving rates.
16
International Opportunities | ||
Top Ten Holdings as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Azimut Holding SpA | 2.0% | — |
Tecnicas Reunidas SA | 1.7% | — |
Aquarius Platinum Ltd. | 1.7% | — |
Premier Oil plc | 1.6% | — |
Shenzhen Investment Ltd. | 1.5% | — |
Nexity | 1.5% | — |
Charter International plc | 1.5% | — |
Techtronic Industries Co. | 1.5% | — |
Disco Corp. | 1.4% | — |
HudBay Minerals, Inc. | 1.4% | — |
Types of Investments in Portfolio | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Foreign Common Stocks & Rights | 97.9% | 98.6% |
Temporary Cash Investments | 0.8% | 0.1% |
Other Assets and Liabilities | 1.3% | 1.3% |
Investments by Country as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
United Kingdom | 16.1% | 17.3% |
Japan | 15.1% | 29.7% |
Hong Kong | 7.3% | 4.4% |
Taiwan (Republic of China) | 7.3% | 1.7% |
Canada | 6.6% | 2.5% |
South Korea | 6.1% | 2.3% |
Italy | 4.8% | 4.8% |
People’s Republic of China | 4.7% | 2.8% |
India | 3.6% | 2.0% |
Germany | 3.3% | 6.6% |
Spain | 2.7% | 4.3% |
Australia | 2.5% | 1.5% |
Turkey | 2.4% | — |
Sweden | 2.1% | 0.8% |
France | 2.0% | 3.6% |
Other Countries | 11.3% | 14.3% |
Cash and Equivalents* | 2.1% | 1.4% |
*Includes temporary cash investments and other assets and liabilities. |
17
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 December 1, 2008 to May 31, 2009.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or Institutional Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. We will not charge the fee as long as you choose to manage your accounts exclusively online. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical 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.
18
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses Paid | ||
Account Value | Account Value | During Period* | Annualized | |
12/1/08 | 5/31/09 | 12/1/08 - 5/31/09 | Expense Ratio* | |
International Stock | ||||
Actual | ||||
Investor Class | $1,000 | $1,145.10 | $8.08 | 1.51% |
Hypothetical | ||||
Investor Class | $1,000 | $1,017.40 | $7.59 | 1.51% |
International Discovery | ||||
Actual | ||||
Investor Class | $1,000 | $1,165.80 | $8.21 | 1.52% |
Institutional Class | $1,000 | $1,166.00 | $7.13 | 1.32% |
Advisor Class | $1,000 | $1,163.20 | $9.55 | 1.77% |
Hypothetical | ||||
Investor Class | $1,000 | $1,017.35 | $7.64 | 1.52% |
Institutional Class | $1,000 | $1,018.35 | $6.64 | 1.32% |
Advisor Class | $1,000 | $1,016.11 | $8.90 | 1.77% |
International Opportunities | ||||
Actual | ||||
Investor Class | $1,000 | $1,218.90 | $11.01 | 1.99% |
Institutional Class | $1,000 | $1,223.10 | $9.92 | 1.79% |
Hypothetical | ||||
Investor Class | $1,000 | $1,015.01 | $10.00 | 1.99% |
Institutional Class | $1,000 | $1,016.01 | $9.00 | 1.79% |
*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 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period.
19
Schedule of Investments |
International Stock |
MAY 31, 2009 (UNAUDITED) | ||||||
Shares | Value | Shares | Value | |||
Common Stocks — 98.8% | Cie Generale d’Optique | |||||
Essilor International SA | 4,687 | $ 215,920 | ||||
AUSTRALIA — 4.2% | Danone SA | 3,852 | 191,934 | |||
BHP Billiton Ltd. | 36,777 | $ 1,033,219 | GDF Suez | 8,368 | 329,897 | |
Commonwealth Bank | Legrand SA | 2,870 | 60,787 | |||
of Australia | 8,791 | 249,862 | ||||
LVMH Moet Hennessy Louis | ||||||
CSL Ltd. | 27,603 | 646,386 | Vuitton SA | 1,943 | 161,533 | |
Origin Energy Ltd. | 12,770 | 151,578 | Publicis Groupe | 8,231 | 267,252 | |
Rio Tinto Ltd. | 4,153 | 216,860 | Total SA | 17,223 | 996,928 | |
Wesfarmers Ltd. | 22,956 | 394,222 | 3,949,523 | |||
2,692,127 | GERMANY — 6.7% | |||||
BELGIUM — 1.3% | Allianz SE | 4,226 | 416,602 | |||
Anheuser-Busch InBev NV | 23,833 | 842,377 | BASF SE | 12,164 | 513,683 | |
BERMUDA — 0.3% | Bayer AG | 4,783 | 272,352 | |||
Seadrill Ltd. | 13,027 | 191,452 | Daimler AG | 6,982 | 256,069 | |
BRAZIL — 2.6% | Deutsche Boerse AG | 6,320 | 551,802 | |||
Petroleo Brasileiro SA ADR | 8,708 | 383,413 | Fresenius Medical Care AG | |||
Redecard SA | 27,400 | 395,487 | & Co. KGaA | 16,031 | 671,910 | |
Vale SA Preference Shares | 54,000 | 891,126 | K+S AG | 1,203 | 89,576 | |
1,670,026 | Muenchener | |||||
CANADA — 2.8% | Rueckversicherungs- | |||||
Canadian National | Gesellschaft AG | 6,781 | 951,436 | |||
Railway Co. | 10,281 | 442,504 | SAP AG | 7,725 | 332,564 | |
EnCana Corp. | 7,455 | 413,231 | Wacker Chemie AG | 2,048 | 256,360 | |
Precision Drilling Trust | 11,641 | 68,135 | 4,312,354 | |||
Research In Motion Ltd.(1) | 11,552 | 908,449 | GREECE — 1.5% | |||
1,832,319 | National Bank | |||||
of Greece SA(1) | 33,941 | 939,393 | ||||
CZECH REPUBLIC — 0.2% | ||||||
CEZ AS | 3,495 | 157,898 | HONG KONG — 1.6% | |||
DENMARK — 1.7% | Hang Seng Bank Ltd. | 20,900 | 300,331 | |||
Novo Nordisk A/S B Shares | 10,004 | 520,939 | Li & Fung Ltd. | 104,000 | 279,829 | |
Vestas Wind Systems A/S(1) | 7,805 | 571,142 | Link Real Estate | |||
Investment Trust (The) | 216,000 | 424,864 | ||||
1,092,081 | 1,005,024 | |||||
FINLAND — 0.6% | INDIA — 1.2% | |||||
Nokia Oyj | 23,264 | 356,317 | Housing Development | |||
FRANCE — 6.1% | Finance Corp. Ltd. | 4,397 | 203,692 | |||
Air Liquide SA | 4,596 | 427,526 | ICICI Bank Ltd. ADR | 8,981 | 279,668 | |
ALSTOM SA | 3,641 | 231,285 | Larsen & Toubro Ltd. | 8,775 | 261,480 | |
BNP Paribas | 10,452 | 726,661 | 744,840 | |||
Cie Generale des | INDONESIA — 0.2% | |||||
Etablissements Michelin, | ||||||
Class B | 5,587 | 339,800 | PT Bank Rakyat Indonesia | 160,000 | 97,691 |
20
International Stock | ||||||
Shares | Value | Shares | Value | |||
IRELAND — 2.3% | LUXEMBOURG — 1.7% | |||||
CRH plc | 16,429 | $ 389,115 | Millicom International | |||
Experian plc | 94,004 | 696,102 | Cellular SA(1) | 8,080 | $ 490,456 | |
Ryanair Holdings plc ADR(1) | 14,356 | 418,047 | SES SA Fiduciary | |||
Depositary Receipt | 31,489 | 630,096 | ||||
1,503,264 | ||||||
1,120,552 | ||||||
ISRAEL — 1.1% | ||||||
MEXICO — 0.3% | ||||||
Teva Pharmaceutical | ||||||
Industries Ltd. ADR | 16,028 | 743,058 | America Movil SAB de CV | |||
ADR, Series L | 4,992 | 191,343 | ||||
ITALY — 5.0% | ||||||
MULTI-NATIONAL — 0.5% | ||||||
ENI SpA | 50,366 | 1,219,248 | ||||
iShares MSCI EAFE | ||||||
Intesa Sanpaolo SpA(1) | 116,910 | 422,920 | Index Fund | 3,408 | 161,539 | |
Luxottica Group SpA(1) | 2,749 | 57,244 | iShares MSCI Emerging | |||
Saipem SpA | 46,083 | 1,176,834 | Markets Index Fund | 5,052 | 168,030 | |
Snam Rete Gas SpA | 88,651 | 383,943 | 329,569 | |||
3,260,189 | NETHERLANDS — 2.1% | |||||
JAPAN — 13.8% | ASML Holding NV | 9,917 | 204,594 | |||
Benesse Corp. | 9,400 | 395,148 | Koninklijke Ahold NV | 82,972 | 1,006,191 | |
Central Japan Railway Co. | 42 | 269,166 | Koninklijke KPN NV | 12,076 | 158,870 | |
Daikin Industries Ltd. | 4,000 | 123,651 | 1,369,655 | |||
Daito Trust | PEOPLE’S REPUBLIC OF CHINA — 2.9% | |||||
Construction Co. Ltd. | 5,200 | 236,043 | Baidu, Inc. ADR(1) | 775 | 204,561 | |
FAST RETAILING CO. LTD. | 1,900 | 225,738 | China Merchants Bank Co. | |||
Honda Motor Co. Ltd. | 22,900 | 664,745 | Ltd. H Shares | 193,050 | 395,661 | |
HOYA Corp. | 15,300 | 320,530 | Ctrip.com International | |||
iShares MSCI Japan | Ltd. ADR | 6,803 | 278,583 | |||
Index Fund | 103,812 | 972,718 | iShares FTSE/Xinhua China | |||
Japan Steel | 25 Index Fund | 6,182 | 230,836 | |||
Works Ltd. (The) | 33,000 | 431,106 | NetEase.com, Inc. ADR(1) | 8,432 | 291,578 | |
Kurita Water Industries Ltd. | 9,000 | 249,439 | Shanda Interactive | |||
Mitsubishi Corp. | 34,700 | 658,529 | Entertainment Ltd. ADR(1) | 1,273 | 73,350 | |
Mitsubishi Estate Co. Ltd. | 21,000 | 346,291 | Tencent Holdings Ltd. | 35,800 | 400,997 | |
Mitsubishi UFJ Financial | 1,875,566 | |||||
Group, Inc. | 89,800 | 566,666 | SINGAPORE — 0.6% | |||
Murata Manufacturing | United Overseas Bank Ltd. | 38,000 | 375,951 | |||
Co. Ltd. | 6,900 | 295,154 | SOUTH KOREA — 2.7% | |||
Nidec Corp. | 5,500 | 316,275 | Hyundai Motor Co. | 8,481 | 472,139 | |
Nintendo Co. Ltd. | 500 | 135,837 | KB Financial Group, Inc.(1) | 4,287 | 139,037 | |
Nitori Co. Ltd. | 5,550 | 336,753 | POSCO | 1,105 | 370,416 | |
Rakuten, Inc. | 1,273 | 700,076 | Samsung Electronics | |||
SMC Corp. | 3,100 | 331,382 | Co. Ltd. | 1,732 | 776,589 | |
SOFTBANK CORP. | 21,600 | 394,722 | 1,758,181 | |||
Sony Financial Holdings, Inc. | 110 | 321,483 | SPAIN — 3.4% | |||
Sumitomo Mitsui Financial | Banco Santander SA | 107,846 | 1,162,727 | |||
Group, Inc. | 700 | 27,095 | Indra Sistemas SA | 13,387 | 305,070 | |
Terumo Corp. | 6,900 | 289,940 | Telefonica SA | 34,525 | 745,793 | |
Unicharm Corp. | 4,200 | 293,422 | 2,213,590 | |||
8,901,909 |
21
International Stock | ||||||
Shares | Value | Shares | Value | |||
SWEDEN — 0.6% | Carnival plc | 17,382 | $ 452,751 | |||
Electrolux AB(1) | 10,023 | $ 128,151 | Cobham plc | 56,274 | 162,879 | |
H & M Hennes & Mauritz AB | Compass Group plc | 112,098 | 648,719 | |||
B Shares | 4,855 | 231,888 | GlaxoSmithKline plc | 29,666 | 500,041�� | |
360,039 | HSBC Holdings plc | 99,767 | 896,892 | |||
SWITZERLAND — 10.3% | Intercontinental Hotels | |||||
ABB Ltd.(1) | 24,533 | 404,336 | Group plc | 14,921 | 158,973 | |
Actelion Ltd.(1) | 5,896 | 305,017 | Kingfisher plc | 151,038 | 436,044 | |
Adecco SA | 9,269 | 404,454 | Man Group plc | 33,842 | 134,041 | |
Credit Suisse Group AG | 15,011 | 671,761 | Next plc | 9,458 | 225,000 | |
Julius Baer Holding AG | 18,606 | 792,771 | Reckitt Benckiser Group plc | 18,643 | 808,720 | |
Lonza Group AG | 3,041 | 314,424 | Reed Elsevier plc | 788 | 6,397 | |
Nestle SA | 32,598 | 1,184,562 | Scottish & Southern | |||
Novartis AG | 19,579 | 782,793 | Energy plc | 46,478 | 877,776 | |
Roche Holding AG | 5,724 | 781,105 | Standard Chartered plc | 12,775 | 260,915 | |
SGS SA | 219 | 274,121 | Tesco plc | 152,969 | 906,375 | |
Syngenta AG | 2,989 | 727,657 | TUI Travel plc | 46,365 | 187,728 | |
6,643,001 | Vodafone Group plc | 271,692 | 511,296 | |||
TAIWAN (REPUBLIC OF CHINA) — 1.6% | 11,887,830 | |||||
TOTAL COMMON STOCKS | ||||||
AU Optronics Corp. ADR | 48,878 | 507,842 | (Cost $60,048,163) | 63,822,977 | ||
Taiwan Semiconductor | ||||||
Manufacturing Co. Ltd. ADR | 37,002 | 404,802 | Temporary Cash Investments — 0.6% | |||
Wistron Corp. | 96,000 | 152,557 | JPMorgan U.S. Treasury | |||
1,065,201 | Plus Money Market Fund | |||||
TURKEY — 0.5% | Agency Shares | 77,932 | 77,932 | |||
Turkiye Garanti | Repurchase Agreement, Goldman Sachs | |||||
Bankasi AS(1) | 134,551 | 340,657 | Group, Inc., (collateralized by various U.S. | |||
UNITED KINGDOM — 18.4% | Treasury obligations, 4.75%, 2/15/37, valued | |||||
at $306,841), in a joint trading account | ||||||
Admiral Group plc | 31,304 | 437,053 | at 0.10%, dated 5/29/09, due 6/1/09 | |||
AMEC plc | 18,157 | 198,583 | (Delivery value $300,003) | 300,000 | ||
AstraZeneca plc | 13,903 | 579,556 | TOTAL TEMPORARY | |||
Autonomy Corp. plc(1) | 13,715 | 343,597 | CASH INVESTMENTS | |||
(Cost $377,932) | 377,932 | |||||
Barclays plc | 48,920 | 235,835 | TOTAL INVESTMENT | |||
BG Group plc | 70,550 | 1,292,913 | SECURITIES — 99.4% | |||
British American | (Cost $60,426,095) | 64,200,909 | ||||
Tobacco plc | 12,017 | 328,263 | OTHER ASSETS | |||
British Sky Broadcasting | AND LIABILITIES — 0.6% | 361,456 | ||||
Group plc | 75,055 | 541,486 | TOTAL NET ASSETS — 100.0% | $64,562,365 | ||
Cadbury plc | 7,206 | 62,985 | ||||
Capita Group plc (The) | 59,739 | 693,012 |
22
International Stock | |||
Market Sector Diversification | Notes to Schedule of Investments | ||
(as a % of net assets) | ADR = American Depositary Receipt | ||
Financials | 20.6% | EAFE = Europe, Australasia, and Far East | |
Consumer Discretionary | 12.5% | FTSE = Financial Times Stock Exchange | |
Industrials | 10.3% | MSCI = Morgan Stanley Capital International | |
Health Care | 10.3% | (1) Non-income producing. | |
Information Technology | 9.8% | ||
Energy | 9.4% | ||
Consumer Staples | 9.3% | See Notes to Financial Statements. | |
Materials | 7.6% | ||
Telecommunication Services | 3.9% | ||
Utilities | 2.7% | ||
Diversified | 2.4% | ||
Cash and Equivalents* | 1.2% | ||
*Includes temporary cash investments and other assets and liabilities. |
23
International Discovery
MAY 31, 2009 (UNAUDITED) | ||||||
Shares | Value | Shares | Value | |||
Common Stocks — 98.3% | GERMANY — 3.8% | |||||
Infineon Technologies AG(1) | 1,610,300 | $ 5,118,562 | ||||
AUSTRALIA — 3.1% | ||||||
Arrow Energy Ltd(1) | 1,645,200 | $ 4,966,244 | Solarworld AG | 166,500 | 5,208,923 | |
United Internet AG(1) | 647,200 | 8,321,638 | ||||
CSL Ltd. | 367,400 | 8,603,487 | ||||
Nufarm Ltd. | 926,804 | 9,148,718 | Wacker Chemie AG | 108,500 | 13,581,587 | |
Tatts Group Ltd. | 1,692,800 | 3,324,394 | 32,230,710 | |||
26,042,843 | GREECE — 2.3% | |||||
AUSTRIA — 0.5% | OPAP SA | 157,400 | 4,863,154 | |||
Andritz AG | 111,900 | 4,562,447 | Piraeus Bank SA(1) | 913,500 | 10,581,145 | |
BELGIUM — 1.1% | Public Power Corp. SA | 185,800 | 4,219,948 | |||
Bekaert SA | 49,202 | 5,008,791 | 19,664,247 | |||
Colruyt SA | 19,500 | 4,596,097 | HONG KONG — 5.5% | |||
9,604,888 | China Everbright Ltd. | 3,516,000 | 8,485,695 | |||
BERMUDA — 3.1% | Hengan International | |||||
Group Co. Ltd. | 402,000 | 1,836,490 | ||||
Seadrill Ltd. | 1,792,100 | 26,337,758 | ||||
Link Real Estate Investment | ||||||
BRAZIL — 5.1% | Trust (The) | 2,435,000 | 4,789,559 | |||
Aracruz Celulose SA ADR(1) | 540,100 | 9,230,309 | Melco Crown Entertainment | |||
BM&FBOVESPA SA | 3,935,500 | 22,561,720 | Ltd. ADR(1) | 2,606,600 | 15,691,732 | |
Global Village Telecom | Nine Dragons Paper | |||||
Holding SA(1) | 377,200 | 6,347,373 | Holdings Ltd. | 10,519,000 | 7,647,646 | |
MMX Mineracao | Wing Hang Bank Ltd. | 869,000 | 7,854,352 | |||
e Metalicos SA(1) | 908,900 | 3,113,431 | 46,305,474 | |||
Natura Cosmeticos SA | 160,800 | 2,072,519 | HUNGARY — 0.6% | |||
43,325,352 | OTP Bank plc(1) | 303,100 | 5,399,061 | |||
CANADA — 5.6% | INDIA — 2.0% | |||||
Agnico-Eagle Mines Ltd. | 92,700 | 5,730,546 | Aban Offshore Ltd. | 296,764 | 5,707,210 | |
Eldorado Gold Corp.(1) | 296,000 | 2,933,565 | Housing Development & | |||
Ensign Energy Services, Inc. | 124,000 | 1,886,549 | Infrastructure Ltd. | 701,500 | 4,242,000 | |
First Quantum Minerals Ltd. | 351,000 | 15,637,866 | India Fund, Inc. (The) | 60,500 | 1,777,490 | |
Precision Drilling Trust | 2,782,171 | 16,303,522 | Maruti Suzuki India Ltd. | 220,500 | 4,813,304 | |
SNC-Lavalin Group, Inc. | 140,600 | 5,044,472 | 16,540,004 | |||
47,536,520 | INDONESIA — 1.0% | |||||
DENMARK — 0.7% | PT Bumi Resources Tbk | 42,891,000 | 8,201,952 | |||
FLSmidth & Co. A/S(1) | 100,700 | 3,745,725 | IRELAND — 1.0% | |||
Genmab A/S(1) | 56,700 | 2,102,291 | Experian plc | 1,102,700 | 8,165,526 | |
5,848,016 | JAPAN — 15.9% | |||||
FINLAND — 0.6% | Aisin Seiki Co. Ltd. | 413,400 | 8,248,893 | |||
KONE Oyj B Shares | 179,300 | 5,446,451 | Benesse Corp. | 93,900 | 3,947,273 | |
FRANCE — 1.8% | Credit Saison Co. Ltd. | 567,500 | 7,670,404 | |||
Iliad SA | 52,100 | 5,802,739 | Japan Steel | |||
Publicis Groupe | 304,000 | 9,870,548 | Works Ltd. (The) | 804,000 | 10,503,309 | |
15,673,287 | JGC Corp. | 349,000 | 5,832,800 | |||
Jupiter Telecommunications | ||||||
Co. Ltd. | 4,700 | 3,468,657 |
24
International Discovery
Shares | Value | Shares | Value | |||
Marubeni Corp. | 2,390,000 | $ 10,859,179 | Shanda Interactive | |||
Mitsubishi Gas | Entertainment Ltd. ADR(1) | 249,700 | $ 14,387,714 | |||
Chemical Co., Inc. | 712,000 | 4,066,719 | Sino-Ocean Land | |||
NGK Insulators Ltd. | 364,000 | 6,512,862 | Holdings Ltd. | 9,125,000 | 9,378,036 | |
Nippon Electric | Suntech Power | |||||
Glass Co. Ltd. | 706,000 | 6,859,928 | Holdings Co. Ltd. ADR(1) | 341,700 | 5,583,378 | |
Nitto Denko Corp. | 208,300 | 5,847,830 | 65,712,069 | |||
NSK Ltd. | 1,347,000 | 6,537,690 | PERU — 0.2% | |||
ORIX Corp. | 135,700 | 8,568,481 | Credicorp Ltd. | 27,300 | 1,644,006 | |
Rakuten, Inc. | 5,800 | 3,189,664 | SINGAPORE(2) | |||
Shinko Electric | Yanlord Land Group Ltd. | 88,000 | 134,097 | |||
Industries Co. Ltd. | 354,200 | 4,078,640 | SOUTH KOREA — 1.3% | |||
Shionogi & Co. Ltd. | 430,000 | 8,494,589 | Hynix Semiconductor, Inc.(1) | 362,200 | 3,770,794 | |
Sumco Corp. | 413,100 | 6,400,324 | Kia Motors Corp.(1) | 323,100 | 3,099,357 | |
Sumitomo Heavy | NHN Corp.(1) | 23,900 | 3,808,916 | |||
Industries Ltd. | 1,032,000 | 4,345,687 | 10,679,067 | |||
Tokyo Steel | ||||||
Manufacturing Co. Ltd. | 406,800 | 4,798,953 | SPAIN — 1.9% | |||
Toyota Tsusho Corp. | 291,200 | 4,060,729 | Abengoa SA | 203,500 | 5,082,327 | |
Trend Micro, Inc. | 149,500 | 4,966,074 | EDP Renovaveis SA(1) | 835,000 | 8,856,530 | |
Yamada Denki Co. Ltd. | 92,300 | 5,285,772 | Indra Sistemas SA | 107,000 | 2,438,368 | |
134,544,457 | 16,377,225 | |||||
LUXEMBOURG — 0.9% | SWEDEN — 1.7% | |||||
Millicom International | ASSA ABLOY AB, Class B | 297,200 | 3,924,520 | |||
Cellular SA(1) | 122,000 | 7,405,400 | Modern Times Group AB, | |||
MEXICO — 0.5% | Class B | 190,800 | 5,659,881 | |||
Kimberly-Clark de Mexico | Swedish Match AB | 300,500 | 4,829,637 | |||
SAB de CV, Class A | 1,103,300 | 4,263,435 | 14,414,038 | |||
NETHERLANDS — 2.1% | SWITZERLAND — 5.6% | |||||
ASML Holding NV | 346,100 | 7,140,251 | Actelion Ltd.(1) | 90,700 | 4,692,179 | |
Fugro NV CVA | 39,500 | 1,652,288 | Adecco SA | 194,800 | 8,500,130 | |
Koninklijke Vopak NV(1) | 117,700 | 5,861,968 | Geberit AG | 68,200 | 8,418,885 | |
QIAGEN NV(1) | 180,100 | 3,202,023 | Lonza Group AG | 185,100 | 19,138,397 | |
17,856,530 | STMicroelectronics NV | 943,300 | 7,014,802 | |||
NORWAY — 0.3% | 47,764,393 | |||||
Pronova BioPharma ASA(1) | 1,001,800 | 2,948,137 | TAIWAN (REPUBLIC OF CHINA) — 5.3% | |||
PEOPLE’S REPUBLIC OF CHINA — 7.8% | Acer, Inc. | 4,917,000 | 8,971,917 | |||
Anhui Conch Cement Co. | Asia Cement Corp. | 6,695,000 | 7,577,054 | |||
Ltd. H Shares | 1,434,000 | 10,319,612 | Catcher Technology Co. Ltd. | 1,669,000 | 4,758,537 | |
China High Speed | Coretronic Corp. | 3,689,000 | 4,491,096 | |||
Transmission Equipment | iShares MSCI Taiwan | |||||
Group Co. Ltd. | 2,096,000 | 4,445,855 | Index Fund | 215,900 | 2,435,352 | |
Dongfeng Motor Group Co. | Siliconware Precision | |||||
Ltd. H Shares | 7,934,000 | 7,641,605 | Industries Co. ADR | 487,900 | 3,610,460 | |
Foxconn International | Wistron Corp. | 6,019,000 | 9,565,003 | |||
Holdings Ltd.(1) | 11,800,000 | 8,460,912 | ||||
Yuanta Financial | ||||||
Guangzhou R&F Properties | Holding Co. Ltd. | 4,417,000 | 3,316,099 | |||
Co. Ltd. H Shares | 2,400,000 | 5,494,957 | 44,725,518 |
25
International Discovery
Shares | Value | Market Sector Diversification | ||||
TURKEY — 0.5% | (as a % of net assets) | |||||
Asya Katilim Bankasi AS(1) | 3,422,700 | $ 4,072,245 | Industrials | 17.9% | ||
UNITED KINGDOM — 16.5% | Financials | 16.0% | ||||
Amlin plc | 1,277,600 | 7,274,307 | Materials | 14.4% | ||
Ashmore Group plc | 1,122,700 | 3,819,547 | Information Technology | 14.0% | ||
Autonomy Corp. plc(1) | 167,200 | 4,188,798 | Consumer Discretionary | 12.6% | ||
Balfour Beatty plc | 501,000 | 2,756,871 | Energy | 10.4% | ||
Berkeley Group | Health Care | 5.8% | ||||
Holdings plc(1) | 394,800 | 5,711,599 | Telecommunication Services | 3.0% | ||
Carphone Warehouse | Consumer Staples | 2.1% | ||||
Group plc | 4,747,100 | 12,987,133 | Utilities | 1.6% | ||
G4S plc | 1,223,300 | 4,189,364 | Diversified | 0.5% | ||
Inmarsat plc | 742,400 | 6,202,660 | Cash and Equivalents* | 1.7% | ||
Invensys plc(1) | 2,840,500 | 10,781,638 | ||||
*Includes temporary cash investments and other assets and liabilities. | ||||||
Johnson Matthey plc | 119,600 | 2,340,267 | ||||
Man Group plc | 3,780,600 | 14,974,114 | Notes to Schedule of Investments | |||
Next plc | 108,300 | 2,576,387 | ADR = American Depositary Receipt | |||
Petrofac Ltd. | 327,200 | 3,515,097 | CVA = Certificaten Van Aandelen | |||
Premier Oil plc(1) | 228,600 | 4,239,118 | MSCI = Morgan Stanley Capital International | |||
Serco Group plc | 1,067,900 | 6,984,410 | (1) | Non-income producing. | ||
Tullow Oil plc | 1,308,300 | 21,140,275 | (2) | Category is less than 0.05% of total net assets. | ||
Vedanta Resources plc | 787,400 | 20,400,205 | ||||
VT Group plc | 756,900 | 5,732,780 | ||||
139,814,570 | See Notes to Financial Statements. | |||||
TOTAL COMMON STOCKS | ||||||
(Cost $654,268,840) | 833,239,723 | |||||
Temporary Cash Investments — 0.3% | ||||||
Repurchase Agreement, Goldman Sachs | ||||||
Group, Inc., (collateralized by various U.S. | ||||||
Treasury obligations, 4.75%, 2/15/37, valued | ||||||
at $2,454,724), in a joint trading account | ||||||
at 0.10%, dated 5/29/09, due 6/1/09 | ||||||
(Delivery value $2,400,020) | ||||||
(Cost $2,400,000) | 2,400,000 | |||||
TOTAL INVESTMENT | ||||||
SECURITIES — 98.6% | ||||||
(Cost $656,668,840) | 835,639,723 | |||||
OTHER ASSETS | ||||||
AND LIABILITIES — 1.4% | 12,091,657 | |||||
TOTAL NET ASSETS — 100.0% | $847,731,380 |
26
International Opportunities
MAY 31, 2009 (UNAUDITED) | ||||||
Shares | Value | Shares | Value | |||
Common Stocks & Rights — 97.9% | HONG KONG — 7.3% | |||||
China Everbright | ||||||
AUSTRALIA — 2.5% | International Ltd. | 1,163,000 | $ 373,480 | |||
JB Hi-Fi Ltd. | 40,403 | $ 407,341 | Comba Telecom Systems | |||
PanAust Ltd.(1) | 2,836,636 | 832,170 | Holdings Ltd. | 800,800 | 418,329 | |
Sino Gold Mining Ltd.(1) | 111,944 | 586,113 | Hengan International | |||
1,825,624 | Group Co. Ltd. | 74,000 | 338,060 | |||
AUSTRIA — 0.8% | Ju Teng International | |||||
bwin Interactive | Holdings Ltd. | 820,000 | 503,435 | |||
Entertainment AG(1) | 13,420 | 544,277 | Melco International | |||
Development Ltd.(1) | 1,025,000 | 761,958 | ||||
BELGIUM — 1.3% | ||||||
Nyrstar(1) | 61,606 | 563,234 | Shenzhen Investment Ltd. | 2,558,000 | 1,112,950 | |
Techtronic Industries Co. | 1,420,000 | 1,069,362 | ||||
Telenet Group Holding NV(1) | 18,357 | 365,805 | ||||
Xinyi Glass Holdings Co. Ltd. | 946,000 | 717,979 | ||||
929,039 | ||||||
5,295,553 | ||||||
BRAZIL — 0.7% | ||||||
INDIA — 3.6% | ||||||
Votorantim Celulose | ||||||
e Papel SA ADR | Dabur India Ltd. | 136,975 | 321,338 | |||
Preference Shares(1) | 45,794 | 543,575 | GVK Power & | |||
CANADA — 6.6% | Infrastructure Ltd.(1) | 833,392 | 813,567 | |||
Equinox Minerals Ltd.(1) | 326,254 | 806,857 | Housing Development & | |||
Infrastructure Ltd. | 112,227 | 678,642 | ||||
Gran Tierra Energy, Inc.(1) | 142,607 | 433,525 | ||||
Voltas Ltd. | 371,216 | 780,379 | ||||
HudBay Minerals, Inc.(1) | 138,894 | 1,020,316 | ||||
2,593,926 | ||||||
Petrominerales Ltd.(1) | 33,480 | 383,329 | INDONESIA — 0.1% | |||
Precision Drilling Trust | 154,140 | 902,180 | PT Perusahaan Perkebunan | |||
Stantec, Inc.(1) | 27,543 | 716,232 | London Sumatra | |||
SXC Health | Indonesia Tbk | 163,500 | 91,994 | |||
Solutions Corp.(1) | 20,225 | 499,627 | IRELAND — 1.8% | |||
4,762,066 | C&C Group plc | 226,172 | 721,684 | |||
DENMARK — 0.5% | Paddy Power plc | 22,806 | 554,246 | |||
Rockwool International A/S, | 1,275,930 | |||||
Class B | 4,743 | 373,787 | ISRAEL — 1.0% | |||
FRANCE — 2.0% | Elbit Systems Ltd. | 12,022 | 735,348 | |||
Groupe Steria SCA | 18,931 | 381,183 | ITALY — 4.8% | |||
Nexity | 31,166 | 1,074,159 | Amplifon SpA(1) | 159,625 | 618,947 | |
1,455,342 | Ansaldo STS SpA | 30,113 | 507,765 | |||
GERMANY — 3.3% | Azimut Holding SpA | 156,569 | 1,474,600 | |||
Centrotherm | DiaSorin SpA | 12,622 | 320,917 | |||
Photovoltaics AG(1) | 16,535 | 747,870 | ||||
Gruppo Editoriale | ||||||
Kloeckner & Co. AG | 17,263 | 350,442 | L’Espresso SpA(1) | 293,332 | 547,324 | |
Phoenix Solar AG | 14,032 | 724,660 | 3,469,553 | |||
Wirecard AG(1) | 58,131 | 529,176 | ||||
2,352,148 |
27
International Opportunities
Shares | Value | Shares | Value | |||
JAPAN — 15.1% | SOUTH AFRICA — 1.7% | |||||
Aeon Delight Co. Ltd. | 20,900 | $ 323,913 | Aquarius Platinum Ltd. | 254,352 | $ 1,263,911 | |
Autobacs Seven Co. Ltd. | 16,600 | 555,415 | SOUTH KOREA — 6.1% | |||
Capcom Co. Ltd. | 18,700 | 365,597 | CJ Internet Corp. | 24,461 | 362,486 | |
CyberAgent, Inc. | 458 | 335,385 | CJ O Shopping Co. Ltd. | 7,172 | 498,393 | |
Disco Corp. | 29,400 | 1,040,940 | DigiTech Systems Co. Ltd.(1) | 34,522 | 707,060 | |
Exedy Corp. | 34,900 | 681,750 | Humax Co. Ltd. | 57,070 | 618,946 | |
F.C.C. Co. Ltd. | 36,400 | 458,830 | KIWOOM Securities Co. Ltd. | 13,450 | 562,844 | |
Horiba Ltd. | 38,000 | 931,053 | MegaStudy Co. Ltd. | 4,078 | 728,250 | |
Kakaku.com, Inc. | 196 | 727,706 | Taewoong Co. Ltd. | 6,183 | 567,511 | |
Nabtesco Corp. | 109,000 | 978,761 | Woongjin Thinkbig Co. Ltd. | 21,680 | 360,111 | |
Nichii Gakkan Co. | 38,800 | 329,541 | 4,405,601 | |||
Nifco, Inc. | 27,000 | 359,476 | SPAIN — 2.7% | |||
Nippo Corp. | 56,000 | 510,846 | Antena 3 de Television SA | 42,355 | 299,810 | |
Shinko Plantech Co. Ltd. | 62,000 | 589,512 | Construcciones y Auxiliar de | |||
THK Co. Ltd. | 20,900 | 315,621 | Ferrocarriles SA | 857 | 367,154 | |
Toyo Engineering Corp. | 189,000 | 677,505 | Tecnicas Reunidas SA(1) | 28,487 | 1,264,900 | |
Tsumura & Co. | 6,000 | 179,053 | 1,931,864 | |||
Ulvac, Inc. | 25,200 | 514,351 | SWEDEN — 2.1% | |||
Unicharm Petcare Corp. | 18,300 | 527,168 | Autoliv, Inc. SDR | 27,877 | 778,539 | |
Union Tool Co. | 20,200 | 527,845 | Loomis AB B Shares | 36,085 | 384,857 | |
10,930,268 | Modern Times Group AB, | |||||
MALAYSIA — 0.9% | Class B | 10,861 | 322,180 | |||
IJM Corp. Bhd | 408,400 | 661,576 | 1,485,576 | |||
NETHERLANDS — 1.3% | TAIWAN (REPUBLIC OF CHINA) — 7.3% | |||||
ARCADIS NV | 22,037 | 345,536 | Catcher Technology Co. Ltd. | 193,000 | 550,268 | |
BinckBank NV | 43,819 | 565,967 | Cheng Shin Rubber | |||
Industry Co. Ltd. | 297,000 | 502,961 | ||||
911,503 | Coretronic Corp. | 324,000 | 394,447 | |||
NORWAY — 1.2% | Goldsun Development & | |||||
Marine Harvest ASA(1) | 617,917 | 364,358 | Construction Co. Ltd. | 1,319,000 | 736,755 | |
TGS Nopec | Huaku Development Co. Ltd. | 295,000 | 808,705 | |||
Geophysical Co. ASA(1) | 50,199 | 499,339 | ||||
Kinsus Interconnect | ||||||
863,697 | Technology Corp. | 358,000 | 652,434 | |||
PEOPLE’S REPUBLIC OF CHINA — 4.7% | Radiant | |||||
China National Building | Opto-Electronics Corp. | 367,000 | 418,189 | |||
Material Co. Ltd. H Shares | 462,000 | 1,012,708 | Shin Zu Shing Co. Ltd. | 118,000 | 567,880 | |
China Shanshui Cement | WPG Holdings Co. Ltd. | 580,000 | 620,653 | |||
Group Ltd. | 854,000 | 529,953 | 5,252,292 | |||
Shandong Weigao Group | ||||||
Medical Polymer Co. Ltd. | TURKEY — 2.4% | |||||
H Shares | 136,000 | 326,276 | Tofas Turk Otomobil | |||
Yingli Green Energy | Fabrikasi AS | 468,395 | 771,933 | |||
Holding Co. Ltd.(1) | 71,647 | 917,082 | Turkiye Vakiflar Bankasi Tao, | |||
Class D(1) | 707,666 | 992,896 | ||||
Zhuzhou CSR Times Electric | ||||||
Co. Ltd. H Shares | 428,000 | 627,819 | 1,764,829 | |||
3,413,838 |
28
International Opportunities
Shares | Value | Market Sector Diversification | |||
UNITED KINGDOM — 16.1% | (as a % of net assets) | ||||
Acergy SA | 88,469 | $ 896,924 | Industrials | 25.2% | |
Afren plc(1) | 944,766 | 770,675 | Consumer Discretionary | 17.8% | |
Autonomy Corp. plc(1) | 16,145 | 404,475 | Information Technology | 14.3% | |
Babcock International | Energy | 11.6% | |||
Group plc | 44,882 | 336,355 | Materials | 11.4% | |
Charter International plc | 124,203 | 1,073,149 | Financials | 9.5% | |
Chemring Group plc | 10,290 | 335,281 | Consumer Staples | 3.3% | |
Cookson Group plc(1) | 89,058 | 395,563 | Health Care | 3.2% | |
CSR plc(1) | 95,296 | 542,746 | Utilities | 1.1% | |
Dana Petroleum plc(1) | 46,013 | 984,062 | Telecommunication Services | 0.5% | |
Intertek Group plc | 29,909 | 508,536 | Cash and Equivalents* | 2.1% | |
Michael Page | *Includes temporary cash investments and other assets and liabilities. | ||||
International plc | 177,069 | 737,964 | |||
Micro Focus | Notes to Schedule of Investments | ||||
International plc | 101,266 | 650,108 | ADR = American Depositary Receipt | ||
Petrofac Ltd. | 45,259 | 486,216 | SDR = Swedish Depositary Receipt | ||
Premier Oil plc(1) | 61,400 | 1,138,591 | (1) Non-income producing. | ||
Rightmove plc | 122,264 | 697,895 | |||
Travis Perkins plc | 59,147 | 519,104 | |||
Travis Perkins plc Rights(1) | 41,402 | 114,430 | See Notes to Financial Statements. | ||
Tullett Prebon plc | 145,029 | 697,210 | |||
Weir Group plc (The) | 44,534 | 371,881 | |||
11,661,165 | |||||
TOTAL COMMON STOCKS & RIGHTS | |||||
(Cost $54,238,985) | 70,794,282 | ||||
Temporary Cash Investments — 0.8% | |||||
JPMorgan U.S. Treasury | |||||
Plus Money Market Fund | |||||
Agency Shares | 98,741 | 98,741 | |||
Repurchase Agreement, Goldman Sachs | |||||
Group, Inc., (collateralized by various U.S. | |||||
Treasury obligations, 4.75%, 2/15/37, valued | |||||
at $511,401), in a joint trading account | |||||
at 0.10%, dated 5/29/09, due 6/1/09 | |||||
(Delivery value $500,004) | 500,000 | ||||
TOTAL TEMPORARY | |||||
CASH INVESTMENTS | |||||
(Cost $598,741) | 598,741 | ||||
TOTAL INVESTMENT | |||||
SECURITIES — 98.7% | |||||
(Cost $54,837,726) | 71,393,023 | ||||
OTHER ASSETS | |||||
AND LIABILITIES — 1.3% | 924,026 | ||||
TOTAL NET ASSETS — 100.0% | $72,317,049 |
29
Statement of Assets and Liabilities | |||
MAY 31, 2009 (UNAUDITED) | |||
International | International | International | |
Stock | Discovery | Opportunities | |
Assets | |||
Investment securities, at value (cost of $60,426,095, | |||
$656,668,840 and $54,837,726, respectively) | $64,200,909 | $835,639,723 | $71,393,023 |
Foreign currency holdings, at value (cost of $10,581, | |||
$1,032,450 and $90,470, respectively) | 17,928 | 1,033,129 | 89,985 |
Receivable for investments sold | 1,717,080 | 32,480,451 | 4,713,750 |
Receivable for capital shares sold | 34,527 | 283,256 | 96,046 |
Dividends and interest receivable | 267,802 | 2,107,660 | 290,647 |
Other assets | 416 | 110,364 | 13,598 |
66,238,662 | 871,654,583 | 76,597,049 | |
Liabilities | |||
Disbursements in excess of demand deposit cash | 17,018 | 156,531 | 10,870 |
Payable for investments purchased | 1,562,621 | 21,997,161 | 4,155,814 |
Payable for capital shares redeemed | 18,576 | 348,392 | 2,335 |
Accrued management fees | 78,082 | 994,110 | 110,981 |
Distribution and service fee payable | — | 1,613 | — |
Accrued foreign taxes | — | 425,396 | — |
1,676,297 | 23,923,203 | 4,280,000 | |
Net Assets | $64,562,365 | $847,731,380 | $72,317,049 |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ 92,065,464 | $1,363,363,721 | $118,416,504 |
Undistributed net investment income | 601,294 | 1,914,490 | 38,493 |
Accumulated net realized loss on investment and | |||
foreign currency transactions | (31,898,358) | (696,208,226) | (62,703,084) |
Net unrealized appreciation on investments and | |||
translation of assets and liabilities in foreign currencies | 3,793,965 | 178,661,395 | 16,565,136 |
$ 64,562,365 | $ 847,731,380 | $ 72,317,049 | |
Investor Class, $0.01 Par Value | |||
Net assets | $64,562,365 | $772,598,721 | $72,289,585 |
Shares outstanding | 7,073,044 | 107,052,794 | 16,028,166 |
Net asset value per share | $9.13 | $7.22 | $4.51 |
Institutional Class, $0.01 Par Value | |||
Net assets | N/A | $67,217,082 | $27,464 |
Shares outstanding | N/A | 9,206,247 | 6,042 |
Net asset value per share | N/A | $7.30 | $4.55 |
Advisor Class, $0.01 Par Value | |||
Net assets | N/A | $7,915,577 | N/A |
Shares outstanding | N/A | 1,119,123 | N/A |
Net asset value per share | N/A | $7.07 | N/A |
See Notes to Financial Statements. |
30
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2009 (UNAUDITED) | |||
International | International | International | |
Stock | Discovery | Opportunities | |
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $116,925, | |||
$751,710 and $64,323, respectively) | $1,054,752 | $ 7,677,006 | $ 636,562 |
Interest | 140 | 9,362 | 3,154 |
Securities lending, net | — | 53,210 | 3,770 |
1,054,892 | 7,739,578 | 643,486 | |
Expenses: | |||
Management fees | 434,221 | 5,538,208 | 603,537 |
Distribution and service fees | — | 9,982 | — |
Directors’ fees and expenses | 1,068 | 13,872 | 1,137 |
Other expenses | 1,233 | 5,058 | 319 |
436,522 | 5,567,120 | 604,993 | |
Net investment income (loss) | 618,370 | 2,172,458 | 38,493 |
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions (net of foreign taxes accrued | |||
of $–, $(60,763) and $–, respectively) | (10,516,237) | (171,862,945) | (11,876,315) |
Foreign currency transactions | (2,371,534) | (37,664,310) | (3,823,371) |
(12,887,771) | (209,527,255) | (15,699,686) | |
Change in net unrealized appreciation (depreciation) on: | |||
Investments (net of foreign taxes accrued of | |||
$–, $425,397 and $–, respectively) | 13,479,873 | 242,232,674 | 21,054,816 |
Translation of assets and liabilities in foreign currencies | 6,726,700 | 82,303,687 | 7,445,988 |
20,206,573 | 324,536,361 | 28,500,804 | |
Net realized and unrealized gain (loss) | 7,318,802 | 115,009,106 | 12,801,118 |
Net Increase (Decrease) in Net Assets | |||
Resulting from Operations | $7,937,172 | $117,181,564 | $12,839,611 |
See Notes to Financial Statements. |
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Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2009 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2008 | ||||
International Stock | International Discovery | |||
Increase (Decrease) in Net Assets | 2009 | 2008 | 2009 | 2008 |
Operations | ||||
Net investment income (loss) | $ 618,370 | $ 1,256,435 | $ 2,172,458 | $ 7,979,262 |
Net realized gain (loss) | (12,887,771) | (18,600,496) | (209,527,255) | (483,272,867) |
Change in net unrealized | ||||
appreciation (depreciation) | 20,206,573 | (46,228,444) | 324,536,361 | (561,643,872) |
Net increase (decrease) in net assets | ||||
resulting from operations | 7,937,172 | (63,572,505) | 117,181,564 | (1,036,937,477) |
Distributions to Shareholders | ||||
From net investment income: | ||||
Investor Class | (936,365) | (1,082,682) | (6,272,184) | (6,356,563) |
Institutional Class | — | — | (623,698) | (874,387) |
Advisor Class | — | — | (57,588) | (6,979) |
From net realized gains: | ||||
Investor Class | — | (5,805,544) | — | (394,844,373) |
Institutional Class | — | — | — | (32,915,911) |
Advisor Class | — | — | — | (1,442,399) |
Decrease in net assets from distributions | (936,365) | (6,888,226) | (6,953,470) | (436,440,612) |
Capital Share Transactions | ||||
Net increase (decrease) in net assets | ||||
from capital share transactions | (2,352,063) | (14,439,277)(1) | (42,090,546) | 346,302,568(1) |
Redemption Fees | ||||
Increase in net assets | ||||
from redemption fees | 1,576 | —(1) | 117,357 | —(1) |
Net increase (decrease) in net assets | 4,650,320 | (84,900,008) | 68,254,905 | (1,127,075,521) |
Net Assets | ||||
Beginning of period | 59,912,045 | 144,812,053 | 779,476,475 | 1,906,551,996 |
End of period | $64,562,365 | $ 59,912,045 | $847,731,380 | $ 779,476,475 |
Undistributed net investment income | $601,294 | $919,289 | $1,914,490 | $6,695,502 |
(1) Capital share transactions for the year ended November 30, 2008 were net of redemption fees (Note 4). | ||||
See Notes to Financial Statements. |
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SIX MONTHS ENDED MAY 31, 2009 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2008 | ||
International Opportunities | ||
Increase (Decrease) in Net Assets | 2009 | 2008 |
Operations | ||
Net investment income (loss) | $ 38,493 | $ 1,066,415 |
Net realized gain (loss) | (15,699,686) | (46,449,501) |
Change in net unrealized appreciation (depreciation) | 28,500,804 | (60,312,691) |
Net increase (decrease) in net assets resulting from operations | 12,839,611 | (105,695,777) |
Distributions to Shareholders | ||
From net investment income: | ||
Investor Class | — | (1,005,979) |
Institutional Class | — | (33,311) |
From net realized gains: | ||
Investor Class | — | (48,940,313) |
Institutional Class | — | (1,080,457) |
Decrease in net assets from distributions | — | (51,060,060) |
Capital Share Transactions | ||
Net increase (decrease) in net assets from capital share transactions | (7,308,843) | 6,871,665(1) |
Redemption Fees | ||
Increase in net assets from redemption fees | 280 | —(1) |
Net increase (decrease) in net assets | 5,531,048 | (149,884,172) |
Net Assets | ||
Beginning of period | 66,786,001 | 216,670,173 |
End of period | $ 72,317,049 | $ 66,786,001 |
Undistributed net investment income | $38,493 | — |
(1) Capital share transactions for the year ended November 30, 2008 were net of redemption fees (Note 4). | ||
See Notes to Financial Statements. |
33
Notes to Financial Statements |
MAY 31, 2009 (UNAUDITED)
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, although it may invest in companies of any size. 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 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.
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. Investments in open-end management investment companies are valued at the reported net asset value. 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 the Board of Directors or its designee, in accordance with procedures adopted by the Board of Directors, 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.
34
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 income earned, net of any rebates or fees, is included in the Statement of Operations. 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.
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 fees and expenses that reduce their value.
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. The funds may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and 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 certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
35
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. All tax years for International Stock remain subject to examination by tax authorities. International Discovery and International Opportunities are no longer subject to examination by tax authorities for years prior to 2005. Additionally, non-U.S. tax returns filed by the funds due to investments in certain foreign securities remain subject to examination by the relevant taxing authority for 7 years from the date of filing. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Accordingly, no provision has been made for federal or state income taxes. Interest and penalties associated with any federal or state income tax obligations, if any, are recorded as interest expense.
Distributions to Shareholders — Distributions to shareholders are recorded on the ex-dividend date. Distributions from net investment income, if any, are generally declared and paid 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 than 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 retained by the funds and help 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.
Subsequent Events — Management has evaluated events or transactions that may have occurred since May 31, 2009, that would merit recognition or disclosure in the financial statements. This evaluation was completed through July 22, 2009, the date the financial statements were available to be issued.
2. Fees and Transactions with Related Parties
Management Fees — The corporation has entered into a Management Agreement with American Century Global Investment Management, Inc. (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 each fund’s assets as well as certain assets, if any, of other clients of the investment advisor outside the American Century Investments family of funds (such as subadvised funds and separate accounts)
36
that have very similar investment teams and investment strategies (strategy assets). 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 the 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.
The effective annual management fee for each class of each fund for the six months ended May 31, 2009, was as follows:
Investor | Institutional | Advisor | |
International Stock | 1.50% | N/A | N/A |
International Discovery | 1.52% | 1.32% | 1.52% |
International Opportunities | 1.98% | 1.78% | 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.
Distribution and Service Fees — 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%. The fees are computed and accrued daily based on the Advisor Class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plan during the six months ended May 31, 2009, are detailed in the Statement of Operations.
Acquired Fund Fees and Expenses — The funds may invest in mutual funds, exchange traded funds, and business development companies (the acquired funds). Each fund will indirectly realize its pro rata share of the fees and expenses of the acquired funds in which it invests. These indirect fees and expenses are not paid out of each fund’s assets but are reflected in the return realized by the fund on its investment in the acquired funds.
Related Parties — Certain officers and directors of the corporation are also officers and/ or directors, 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.
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). The funds have a Mutual Funds Services Agreement with J.P. Morgan Investor Services Co. (JPMIS) and a securities lending agreement with JPMorgan Chase Bank (JPMCB). JPMCB is a custodian of the funds. JPMIM, JPMIS and JPMCB are wholly owned subsidiaries of JPMorgan Chase & Co. (JPM). JPM is an equity investor in ACC.
3. Investment Transactions
Investment transactions, excluding short-term investments, for the six months ended May 31, 2009, were as follows:
International Stock | International Discovery | International Opportunities | |
Purchases | $28,336,358 | $917,510,349 | $79,385,158 |
Proceeds from sales | $31,663,421 | $958,916,723 | $87,381,187 |
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4. Capital Share Transactions | ||||
Transactions in shares of the funds were as follows: | ||||
Six months ended May 31, 2009 | Year ended November 30, 2008 | |||
Shares | Amount | Shares | Amount | |
International Stock | ||||
Investor Class/Shares Authorized | 50,000,000 | 50,000,000 | ||
Sold | 453,073 | $ 3,588,121 | 1,268,342 | $ 17,252,483 |
Issued in reinvestment of distributions | 105,583 | 914,349 | 450,577 | 6,757,448 |
Redeemed | (886,749) | (6,854,533) | (3,076,774) | (38,449,208)(1) |
Net increase (decrease) | (328,093) | $(2,352,063) | (1,357,855) | $(14,439,277) |
International Discovery | ||||
Investor Class/Shares Authorized | 400,000,000 | 400,000,000 | ||
Sold | 5,390,112 | $ 33,520,571 | 15,572,354 | $185,693,343 |
Issued in reinvestment of distributions | 1,112,979 | 6,032,128 | 28,325,967 | 386,169,151 |
Redeemed | (13,394,588) | (81,286,911) | (25,534,894) | (273,173,021)(2) |
(6,891,497) | (41,734,212) | 18,363,427 | 298,689,473 | |
Institutional Class/Shares Authorized | 70,000,000 | 70,000,000 | ||
Sold | 1,782,274 | 11,172,610 | 3,577,588 | 45,306,392 |
Issued in reinvestment of distributions | 107,347 | 588,261 | 2,453,486 | 33,751,832 |
Redeemed | (1,370,354) | (8,366,842) | (5,184,774) | (52,166,981)(3) |
519,267 | 3,394,029 | 846,300 | 26,891,243 | |
Advisor Class/Shares Authorized | 10,000,000 | 10,000,000 | ||
Sold | 176,614 | 1,087,064 | 2,008,006 | 24,142,371 |
Issued in reinvestment of distributions | 10,693 | 56,778 | 109,343 | 1,447,972 |
Redeemed | (800,173) | (4,894,205) | (523,292) | (4,868,491)(4) |
(612,866) | (3,750,363) | 1,594,057 | 20,721,852 | |
Net increase (decrease) | (6,985,096) | $(42,090,546) | 20,803,784 | $346,302,568 |
International Opportunities | ||||
Investor Class/Shares Authorized | 100,000,000 | 100,000,000 | ||
Sold | 706,528 | $ 2,715,224 | 799,367 | $ 5,682,329 |
Issued in reinvestment of distributions | — | — | 6,031,614 | 48,303,707 |
Redeemed | (2,406,329) | (8,766,676) | (7,755,525) | (47,755,326)(5) |
(1,699,801) | (6,051,452) | (924,544) | 6,230,710 | |
Institutional Class/Shares Authorized | 10,000,000 | 10,000,000 | ||
Sold | — | — | 242,328 | 1,848,016 |
Issued in reinvestment of distributions | — | — | 138,903 | 1,113,768 |
Redeemed | (328,394) | (1,257,391) | (441,223) | (2,320,829) |
(328,394) | (1,257,391) | (59,992) | 640,955 | |
Net increase (decrease) | (2,028,195) | $(7,308,843) | (984,536) | $ 6,871,665 |
(1) | Net of redemption fees of $22,320. |
(2) | Net of redemption fees of $401,633. |
(3) | Net of redemption fees of $33,836. |
(4) | Net of redemption fees of $29,868. |
(5) | Net of redemption fees of $4,553. |
38
5. Fair Value Measurements
The funds’ securities valuation process is based on several considerations and may use multiple inputs to determine the fair value of the positions held by the funds. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels as follows:
- Level 1 valuation inputs consist of actual quoted prices based on an active market;
- Level 2 valuation inputs consist of significant direct or indirect observable market data; or
- Level 3 valuation inputs consist of significant unobservable inputs such as the fund’s own assumptions.
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the valuation inputs used to determine the fair value of the funds’ securities as of May 31, 2009:
Fund/Valuation Inputs | Value of Investment Securities |
International Stock | |
Level 1 — Quoted Prices | $7,199,438 |
Level 2 — Other Significant Observable Inputs | 57,001,471 |
Level 3 — Significant Unobservable Inputs | — |
$64,200,909 | |
International Discovery | |
Level 1 — Quoted Prices | $78,069,363 |
Level 2 — Other Significant Observable Inputs | 757,570,360 |
Level 3 — Significant Unobservable Inputs | — |
$835,639,723 | |
International Opportunities | |
Level 1 — Quoted Prices | $1,992,923 |
Level 2 — Other Significant Observable Inputs | 69,400,100 |
Level 3 — Significant Unobservable Inputs | — |
$71,393,023 |
6. Bank Line of Credit
The funds, along with certain other funds in the American Century Investments family of funds, had a $500,000,000 unsecured bank line of credit agreement with Bank of America, N.A. The line expired December 10, 2008, and was not renewed. The agreement allowed the funds to borrow money for temporary or emergency purposes to fund shareholder redemptions. Borrowings under the agreement were subject to interest at the Federal Funds rate plus 0.40%. The funds did not borrow from the line during the six months ended May 31, 2009.
39
7. Interfund Lending
The funds, along with certain other funds in the American Century Investments family of funds, may participate in an interfund lending program, pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC). This program provides an alternative credit facility allowing the funds to borrow from or lend to other funds in the American Century Investments family of funds that permit such transactions. Interfund lending transactions are subject to each fund’s investment policies and borrowing and lending limits. The interfund loan rate earned/paid on interfund lending transactions is determined daily based on the average of certain current market rates. Interfund lending transactions normally extend only overnight, but can have a maximum duration of seven days. The program is subject to annual approval by the Board of Directors. During the six months ended May 31, 2009, the funds did not utilize the program.
8. 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.
International Discovery and International Opportunities concentrate their investments in common stocks of smaller companies. Because of this, International Discovery and International Opportunities may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
9. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of May 31, 2009, the components of investments for federal income tax purposes were as follows:
International Stock | International Discovery | International Opportunities | |
Federal tax cost of investments | $61,842,190 | $668,420,585 | $56,358,657 |
Gross tax appreciation | |||
of investments | $6,776,096 | $172,365,444 | $15,145,374 |
Gross tax depreciation | |||
of investments | (4,417,377) | (5,146,306) | (111,008) |
Net tax appreciation | |||
(depreciation) of investments | $2,358,719 | $167,219,138 | $15,034,366 |
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.
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As of November 30, 2008, the accumulated capital losses listed below 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 in 2016.
The capital and currency loss deferrals listed below represent net capital and foreign currency losses incurred in the one-month period ended November 30, 2008. The funds have elected to treat such losses as having been incurred in the following fiscal year for federal income tax purposes.
International Stock | International Discovery | International Opportunities | |
Accumulated capital losses | $(13,201,545) | $(318,602,999) | $(36,833,557) |
Capital loss deferrals | $(4,024,663) | $(137,900,135) | $(5,960,896) |
Currency loss deferrals | — | $(247,368) | — |
10. Recently Issued Accounting Standards
In March 2008, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB Statement No. 133” (FAS 161). FAS 161 is effective for interim periods beginning after November 15, 2008 and has been adopted by the funds. FAS 161 amends and expands disclosures about derivative instruments and hedging activities. FAS 161 requires qualitative disclosures about the objectives and strategies of derivative instruments, quantitative disclosures about the fair value amounts of and gains and losses on derivative instruments, and disclosures of credit-risk-related contingent features in hedging activities.
41
Financial Highlights | |||||
International Stock | |||||
Investor Class | |||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||
2009(1) | 2008 | 2007 | 2006 | 2005(2) | |
Per-Share Data | |||||
Net Asset Value, Beginning of Period | $8.09 | $16.53 | $13.57 | $10.84 | $10.00 |
Income From Investment Operations | |||||
Net Investment Income (Loss) | 0.09(3) | 0.15(3) | 0.13 | 0.06 | 0.06(3) |
Net Realized and Unrealized Gain (Loss) | 1.08 | (7.81) | 2.88 | 2.74 | 0.78 |
Total From Investment Operations | 1.17 | (7.66) | 3.01 | 2.80 | 0.84 |
Distributions | |||||
From Net Investment Income | (0.13) | (0.12) | (0.05) | (0.08) | — |
From Net Realized Gains | — | (0.66) | — | — | — |
Total Distributions | (0.13) | (0.78) | (0.05) | (0.08) | — |
Redemption Fees(3) | —(4) | —(4) | —(4) | 0.01 | — |
Net Asset Value, End of Period | $9.13 | $8.09 | $16.53 | $13.57 | $10.84 |
Total Return(5) | 14.51% | (48.50)% | 22.22% | 26.07% | 8.40% |
Ratios/Supplemental Data | |||||
Ratio of Operating Expenses | |||||
to Average Net Assets | 1.51%(6) | 1.51% | 1.50% | 1.50% | 1.50%(6) |
Ratio of Net Investment Income (Loss) | |||||
to Average Net Assets | 2.16%(6) | 1.12% | 0.83% | 0.40% | 0.91%(6) |
Portfolio Turnover Rate | 49% | 107% | 103% | 109% | 109% |
Net Assets, End of Period (in thousands) | $64,562 | $59,912 | $144,812 | $90,181 | $20,342 |
(1) | Six months ended May 31, 2009 (unaudited). |
(2) | March 31, 2005 (fund inception) through November 30, 2005. |
(3) | Computed using average shares outstanding throughout the period. |
(4) | Per-share amount was less than $0.005. |
(5) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. |
(6) | Annualized. |
See Notes to Financial Statements.
42
International Discovery | ||||||
Investor Class | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(1) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $6.26 | $18.40 | $18.01 | $15.94 | $15.11 | $12.75 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | 0.02 | 0.06 | 0.05 | (0.02) | 0.14 | (0.01) |
Net Realized and | ||||||
Unrealized Gain (Loss) | 1.00 | (8.09) | 4.60 | 5.00 | 2.97 | 2.40 |
Total From | ||||||
Investment Operations | 1.02 | (8.03) | 4.65 | 4.98 | 3.11 | 2.39 |
Distributions | ||||||
From Net | ||||||
Investment Income | (0.06) | (0.06) | — | (0.13) | — | (0.03) |
From Net | ||||||
Realized Gains | — | (4.05) | (4.26) | (2.78) | (2.28) | — |
Total Distributions | (0.06) | (4.11) | (4.26) | (2.91) | (2.28) | (0.03) |
Net Asset Value, | ||||||
End of Period | $7.22 | $6.26 | $18.40 | $18.01 | $15.94 | $15.11 |
Total Return(3) | 16.58% | (55.48)% | 32.18% | 36.41% | 24.30% | 18.76% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 1.52%(4) | 1.37% | 1.36% | 1.41% | 1.47% | 1.49% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 0.58%(4) | 0.51% | 0.30% | (0.11)% | 1.02% | (0.06)% |
Portfolio Turnover Rate | 125% | 175% | 162% | 148% | 145% | 201% |
Net Assets, End of Period | ||||||
(in thousands) | $772,599 | $713,764 | $1,758,335 | $1,446,955 | $1,145,623 | $1,112,870 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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. |
See Notes to Financial Statements.
43
International Discovery | ||||||
Institutional Class | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(1) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $6.34 | $18.59 | $18.16 | $16.06 | $15.21 | $12.84 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | 0.03 | 0.08 | 0.09 | 0.04 | 0.17 | 0.02 |
Net Realized and | ||||||
Unrealized Gain (Loss) | 1.00 | (8.18) | 4.64 | 5.00 | 2.99 | 2.40 |
Total From | ||||||
Investment Operations | 1.03 | (8.10) | 4.73 | 5.04 | 3.16 | 2.42 |
Distributions | ||||||
From Net | ||||||
Investment Income | (0.07) | (0.10) | — | (0.16) | — | (0.05) |
From Net | ||||||
Realized Gains | — | (4.05) | (4.30) | (2.78) | (2.31) | — |
Total Distributions | (0.07) | (4.15) | (4.30) | (2.94) | (2.31) | (0.05) |
Net Asset Value, | ||||||
End of Period | $7.30 | $6.34 | $18.59 | $18.16 | $16.06 | $15.21 |
Total Return(3) | 16.60% | (55.37)% | 32.45% | 36.65% | 24.56% | 18.94% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 1.32%(4) | 1.17% | 1.16% | 1.21% | 1.27% | 1.29% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 0.78%(4) | 0.71% | 0.50% | 0.09% | 1.22% | 0.14% |
Portfolio Turnover Rate | 125% | 175% | 162% | 148% | 145% | 201% |
Net Assets, End of Period | ||||||
(in thousands) | $67,217 | $55,091 | $145,723 | $105,849 | $205,406 | $165,600 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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. |
See Notes to Financial Statements.
44
International Discovery | ||||||
Advisor Class | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(1) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $6.13 | $18.08 | $17.76 | $15.75 | $14.95 | $12.63 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | 0.01 | 0.06 | 0.07 | (0.08) | 0.10 | (0.05) |
Net Realized and | ||||||
Unrealized Gain (Loss) | 0.98 | (7.95) | 4.46 | 4.96 | 2.95 | 2.37 |
Total From | ||||||
Investment Operations | 0.99 | (7.89) | 4.53 | 4.88 | 3.05 | 2.32 |
Distributions | ||||||
From Net | ||||||
Investment Income | (0.05) | (0.01) | — | (0.09) | — | — |
From Net | ||||||
Realized Gains | — | (4.05) | (4.21) | (2.78) | (2.25) | — |
Total Distributions | (0.05) | (4.06) | (4.21) | (2.87) | (2.25) | — |
Net Asset Value, | ||||||
End of Period | $7.07 | $6.13 | $18.08 | $17.76 | $15.75 | $14.95 |
Total Return(3) | 16.32% | (55.56)% | 31.83% | 36.08% | 24.01% | 18.37% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 1.77%(4) | 1.63% | 1.61% | 1.66% | 1.72% | 1.74% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 0.33%(4) | 0.25% | 0.05% | (0.36)% | 0.77% | (0.31)% |
Portfolio Turnover Rate | 125% | 175% | 162% | 148% | 145% | 201% |
Net Assets, End of Period | ||||||
(in thousands) | $7,916 | $10,622 | $2,494 | $7 | $70 | $201 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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. |
See Notes to Financial Statements.
45
International Opportunities | ||||||
Investor Class | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(1) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $3.70 | $11.37 | $11.79 | $12.27 | $9.35 | $7.62 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | —(3) | 0.05 | 0.02 | (0.01) | 0.02 | (0.05) |
Net Realized | ||||||
and Unrealized | ||||||
Gain (Loss) | 0.81 | (5.06) | 2.94 | 2.53 | 3.19 | 2.03 |
Total From | ||||||
Investment Operations | 0.81 | (5.01) | 2.96 | 2.52 | 3.21 | 1.98 |
Distributions | ||||||
From Net | ||||||
Investment Income | — | (0.05) | —(3) | (0.01) | — | — |
From Net | ||||||
Realized Gains | — | (2.61) | (3.38) | (2.99) | (0.29) | (0.27) |
Total Distributions | — | (2.66) | (3.38) | (3.00) | (0.29) | (0.27) |
Redemption Fees(2) | —(3) | —(3) | —(3) | —(3) | —(3) | 0.02 |
Net Asset Value, | ||||||
End of Period | $4.51 | $3.70 | $11.37 | $11.79 | $12.27 | $9.35 |
Total Return(4) | 21.89% | (56.46)% | 33.73% | 25.37% | 35.28% | 27.14% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 1.99%(5) | 1.87% | 1.81% | 1.85% | 1.91% | 1.97% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 0.12%(5) | 0.72% | 0.19% | (0.06)% | 0.20% | (0.63)% |
Portfolio Turnover Rate | 129% | 206% | 149% | 160% | 112% | 139% |
Net Assets, End of Period | ||||||
(in thousands) | $72,290 | $65,541 | $212,157 | $180,732 | $198,197 | $176,100 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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. |
See Notes to Financial Statements.
46
International Opportunities | ||||||
Institutional Class | ||||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||
2009(1) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Per-Share Data | ||||||
Net Asset Value, | ||||||
Beginning of Period | $3.72 | $11.44 | $11.85 | $12.32 | $9.37 | $7.63 |
Income From | ||||||
Investment Operations | ||||||
Net Investment | ||||||
Income (Loss)(2) | (0.02) | 0.07 | 0.06 | 0.02 | 0.10 | (0.03) |
Net Realized and | ||||||
Unrealized Gain (Loss) | 0.85 | (5.10) | 2.94 | 2.54 | 3.14 | 2.04 |
Total From | ||||||
Investment Operations | 0.83 | (5.03) | 3.00 | 2.56 | 3.24 | 2.01 |
Distributions | ||||||
From Net | ||||||
Investment Income | — | (0.08) | (0.03) | (0.04) | — | — |
From Net | ||||||
Realized Gains | — | (2.61) | (3.38) | (2.99) | (0.29) | (0.29) |
Total Distributions | — | (2.69) | (3.41) | (3.03) | (0.29) | (0.29) |
Redemption Fees(2) | —(3) | —(3) | —(3) | —(3) | —(3) | 0.02 |
Net Asset Value, | ||||||
End of Period | $4.55 | $3.72 | $11.44 | $11.85 | $12.32 | $9.37 |
Total Return(4) | 22.31% | (56.44)% | 33.97% | 25.66% | 35.53% | 27.50% |
Ratios/Supplemental Data | ||||||
Ratio of Operating | ||||||
Expenses to Average | ||||||
Net Assets | 1.79%(5) | 1.67% | 1.61% | 1.65% | 1.71% | 1.77% |
Ratio of Net Investment | ||||||
Income (Loss) to | ||||||
Average Net Assets | 0.32%(5) | 0.92% | 0.39% | 0.14% | 0.40% | (0.43)% |
Portfolio Turnover Rate | 129% | 206% | 149% | 160% | 112% | 139% |
Net Assets, End of Period | ||||||
(in thousands) | $27 | $1,245 | $4,513 | $1,099 | $31 | $10,868 |
(1) | Six months ended May 31, 2009 (unaudited). |
(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. |
See Notes to Financial Statements.
47
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs, or 403(b), 457 and qualified plans are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. You have the right to revoke your withholding election at any time and any election you make may remain in effect until revoked by filing a new election.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld. State taxes will be withheld from your distribution in accordance with the respective state rules.
Proxy Voting Guidelines
American Century 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 Investments’ website at americancentury.com and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the “About Us” page at americancentury.com. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The funds’ Forms N-Q are available on the SEC’s website at sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The funds also make their complete schedule of portfolio holdings for the most recent quarter of their fiscal year available on their website at americancentury.com and, upon request, by calling 1-800-345-2021.
48
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 Morgan Stanley Capital International All Country World Index (MSCI ACWI) is designed to measure equity market performance of developed and emerging markets. The MSCI ACWI includes 47 country indices.
The MSCI AC (All Country) World ex-US Mid Cap Growth Index represents the performance of mid cap growth stocks in developed and emerging markets, excluding the United States.
The MSCI AC (All Country) World ex-US Small Cap Growth Index represents the performance of small cap growth stocks in developed and emerging markets, excluding the United States.
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 EM Growth Index represents the performance of growth 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.
49
Notes |
50
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Contact Us | |
americancentury.com | |
Automated Information Line | 1-800-345-8765 |
Investor Services Representative | 1-800-345-2021 or |
816-531-5575 | |
Business, Not-For-Profit, Employer-Sponsored | |
Retirement Plans | 1-800-345-3533 |
Banks and Trust Companies, Broker-Dealers, | |
Financial Professionals, Insurance Companies | 1-800-345-6488 |
Telecommunications Device for the Deaf | 1-800-634-4113 |
American Century 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.
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
©2009 American Century Proprietary Holdings, Inc. All rights reserved.
©2009 American Century Proprietary Holdings, Inc. All rights reserved.
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CL-SAN-65839N
CL-SAN-65839N
Semiannual Report |
May 31, 2009 |
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65837nx1x1.jpg)
American Century Investments |
NT International Growth Fund
NT Emerging Markets Fund
NT Emerging Markets Fund
President’s Letter |
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Dear Investor:
Thank you for investing with us during the financial reporting period ended May 31, 2009. We appreciate your trust in American Century Investments® during these challenging times.
The U.S. economy continued to struggle at the close of the reporting period, part of the lingering fallout from the subprime-initiated credit and financial crises and global recession that shook the capital markets during the past two years. The recession has affected everyone—from first-time individual investors to hundred-year-old financial institutions.
However, as we mark the second anniversary of the start of the subprime mortgage meltdown, the worst of the economic and financial market obstacles appear to be behind us. The rate of U.S. economic decline has slowed, as have the drop-offs in housing prices and jobs. Risk appetites returned to the markets in recent months, evidenced by the strong stock rebound since early March.
Risk was a predominant theme during the reporting period, as the investment pendulum swung from risk avoidance to risk acceptance. We believe, however, that caution and risk management are still advisable. We don’t think we’re out of the economic woods yet, not with mortgage and corporate default rates on the rise, housing prices still declining, and job losses still mounting.
Effective risk management requires a commitment to disciplined investment approaches that balance risk and reward, with the goal of setting and maintaining risk levels that are appropriate for portfolio objectives. At American Century Investments, we’ve stayed true to the principles that have guided us for over 50 years, including our commitment to delivering superior investment performance and helping investors reach their financial goals. Risk management is part of that commitment—we offer portfolios that can help diversify and stabilize investment returns.
The coming months will likely present additional challenges, but I’m certain that we have the investment professionals and processes in place to provide competitive and compelling long-term results for you. Thank you for your continued confidence in us.
Sincerely,
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65837nx2x2.jpg)
Jonathan S. Thomas
President and Chief Executive Officer
American Century Investments
President and Chief Executive Officer
American Century Investments
Independent Chairman’s Letter |
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I am Don Pratt, an independent director and chairman of the mutual fund board responsible for the U.S. Growth Equity, U.S. Value Equity, Global and Non-U.S. Equity and Asset Allocation funds managed by American Century Investments. The board consists of seven independent directors and two directors who are affiliated with the investment advisor.
As one of your independent shareholder representatives on the fund board, I plan to write you from time to time with updates on board activities and news about your funds. My co-independent directors and I are committed to putting your interests first. We work closely with American Century Investments on maintaining strong fund performance, providing quality service to shareholders at competitive fees and ensuring ethical business practices and compliance with all applicable fund regulations.
Last year, the board welcomed its newest independent director, John R. Whitten. He is a great addition to an experienced board where, collectively, the independent directors have served the funds for more than 76 years. This continuity served shareholders well as the investment advisor initiated a successful management transition, creating a strong senior leadership team consisting of well-tenured company executives and experienced industry veterans. Under the leadership of President and Chief Executive Officer Jonathan Thomas and Chief Investment Officer Enrique Chang, the firm has made the achievement of superior investment performance its primary focus and the key driver of its success going forward. This focus helped the company generate strong relative performance against the backdrop of 2008’s unprecedented market volatility.
As investors in the American Century funds, my fellow directors and I share your investing experience. We know firsthand how decisions made at the board level affect all shareholders. To further guide our efforts on your behalf, I invite you to send me your comments, questions or suggestions by email to dhpratt@fundboardchair.com. Thank you for allowing me to serve as your advocate on our board.
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65837nx3x2.jpg)
Table of Contents |
Market Perspective | 2 |
International Equity Total Returns | 2 |
NT International Growth | |
Performance | 3 |
Portfolio Commentary | 5 |
Top Ten Holdings | 7 |
Types of Investments in Portfolio | 7 |
Investments by Country | 7 |
NT Emerging Markets | |
Performance | 8 |
Portfolio Commentary | 10 |
Top Ten Holdings | 12 |
Types of Investments in Portfolio | 12 |
Investments by Country | 12 |
Shareholder Fee Examples | 13 |
Financial Statements | |
Schedule of Investments | 15 |
Statement of Assets and Liabilities | 21 |
Statement of Operations | 22 |
Statement of Changes in Net Assets | 23 |
Notes to Financial Statements | 24 |
Financial Highlights | 30 |
Other Information | |
Additional Information | 32 |
Index Definitions | 33 |
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 Investments or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Market Perspective |
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65837nx6x1.jpg)
By Mark Kopinski, Chief Investment Officer, Global and Non-U.S. Equity
Stock Performance Made a U-Turn
The global economic slowdown and ongoing credit crisis weighed heavily on the world’s equity markets for the first half of the period, as import and export volumes plummeted, industrial output shrank, and unemployment soared. As a result, stocks remained on the downward track triggered by last fall’s near-collapse of the global financial system.
Midway through the period, however, investor confidence and stock market performance showed an abrupt and surprising rebound. After hitting multi-year lows on March 9, global stocks rallied sharply to finish the six-month period with strong gains. The rebound was triggered by a belief that the global financial system was no longer in imminent danger of collapse.
Prominent central banks, including those in the United States, United Kingdom, and Japan, helped steady investor confidence by launching debt-purchase programs aimed at taming interest rates. Additionally, easy monetary and fiscal policies, including $2.1 trillion in stimulus programs targeting infrastructure development and consumer demand, contributed to improved investor sentiment. Nevertheless, GDP growth remained negative. Shrinking exports weighed on Germany’s economy, where manufacturing output sagged and the unemployment rate climbed. Likewise, reduced output and a deteriorating jobs environment darkened economic prospects for France and the United Kingdom, suggesting an uneven recovery at best.
Emerging Markets Gained as “Riskier” Assets Returned to Favor
With renewed confidence in equities, investors shifted funds toward assets considered “riskier.” Additionally, an uptick in commodity prices coupled with monetary and fiscal stimulus provided support to domestic growth in these economies. As a result, emerging equities performed exceptionally well, reversing some of last year’s significant declines. In China, optimism about the country’s large domestic-oriented stimulus plan helped propel the Shanghai Composite higher, even as declining global export levels remained a concern.
Economic growth seems likely to improve in the second half of the year. However, the economic recovery may not be as robust as the financial markets have discounted. A tug of war between bulls and bears may best characterize the second half of the year.
International Equity Total Returns | ||||
For the six months ended May 31, 2009 (in U.S. dollars)* | ||||
MSCI EM Index | 48.62% | MSCI EAFE Index | 15.10% | |
MSCI EM Growth Index | 48.09% | MSCI World Free Index | 10.26% | |
MSCI EAFE Growth Index | 13.26% | MSCI EAFE Value Index | 16.96% | |
MSCI Europe Index | 14.90% | MSCI Japan Index | 9.01% | |
*Total returns for periods less than one year are not annualized. |
2
Performance | ||||
NT International Growth | ||||
Total Returns as of May 31, 2009 | ||||
Average | ||||
Annual Returns | ||||
6 months(1) | 1 year | Since Inception | Inception Date | |
Institutional Class | 16.15% | -38.76% | -8.65% | 5/12/06 |
MSCI EAFE Index | 15.10% | -36.61% | -9.39% | — |
MSCI EAFE Growth Index | 13.26% | -38.12% | -9.06% | — |
(1) 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.
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
NT International Growth
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65837nx8x1.jpg)
One-Year Returns Over Life of Class | |||||
Periods ended May 31 | |||||
2006* | 2007 | 2008 | 2009 | ||
Institutional Class | -6.60% | 25.87% | 5.36% | -38.76% | |
MSCI EAFE Index | -5.59% | 26.84% | -2.53% | -36.61% | |
MSCI EAFE Growth Index | -6.04% | 25.13% | 2.83% | -38.12% | |
* From 5/12/06, the Institutional Class’s inception date. Not annualized. | |||||
Total Annual Fund Operating Expenses | |||||
Institutional Class | 1.22% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. 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.
4
Portfolio Commentary |
NT International Growth |
Portfolio Managers: Alex Tedder and Raj Gandhi
Performance Summary
The NT International Growth portfolio advanced 16.15%* for the six months ended May 31, 2009, outperforming its benchmark, the MSCI EAFE Index, which gained 15.10%.
The reporting period began with international stocks suffering the effects of a severe global recession and financial-sector crisis. In early March, stocks plunged to new current-cycle lows, as rising unemployment, shrinking industrial output, and negative economic growth rates sent investor confidence tumbling. Market sentiment and performance reversed course quickly, though, as the numerous and unprecedented actions from global central banks and governments sparked optimism among investors. As a result, stocks rebounded sharply in the second half of the reporting period, to finish the six months with solid gains.
On an absolute basis, all sectors and nearly every country represented in the portfolio and benchmark posted positive returns for the six-month period. Effective stock selection accounted for the portfolio’s outperformance relative to the benchmark.
Italy, Belgium Topped Contributors
From a regional perspective, Italy, Belgium and the United Kingdom, which was the portfolio’s largest country weighting, made the greatest contributions to relative performance. Stock selection was helpful in each country, and in Belgium, our overweighted position also was effective.
At the opposite end of the performance spectrum, the portfolio’s holdings in Sweden, which was among the portfolio’s smallest-weighted countries, detracted the most from relative results, followed by positions in France and Hong Kong. Our underweight was the culprit in Sweden, while stock selection was a negative contributor in France and Hong Kong.
Energy, Technology Outperform
After falling in the first half of the reporting period, oil prices skyrocketed later in the six-month period, and this helped push select energy stocks higher. Our energy stocks showed strong results, led by our overweighted position in Italy’s Saipem, an oil and gas services company.
The top contributors to the portfolio’s relative performance included the information technology and energy sectors. The outperformance primarily was due to stock selection, but our allocations (overweight technology, underweight energy) also helped. Canada’s Research In Motion (RIM), the developer of the BlackBerry wireless device, was the portfolio’s top performer for the period. Sales of the company’s touch-screen BlackBerry Storm device, RIM’s answer to Apple’s iPhone, gained traction after RIM
*Total returns for periods less than one year are not annualized.
5
NT International Growth
resolved several software issues. In addition to the strong results from RIM, the portfolio benefited from good stock selection in the computer and peripherals segment.
Another leading portfolio performer was Belgium-based brewer Anheuser-Busch InBev, which we overweighted. The company shored up its balance sheet by selling most of its stake in Tsingtao Brewery, one of China’s largest brewers; soliciting bids for its Oriental Brewing of South Korea; and cutting $1 billion from its capital expenditure budget.
Materials Sector Lagged
The materials sector represented the portfolio’s largest performance detractor. Our underweight combined with negative stock selection in the metals and mining industry accounted for the bulk of the sector’s under-performance. Although our overweight to the consumer discretionary sector yielded positive performance, our stock selection—particularly in the textiles, apparel, and luxury goods segment—led to overall lagging results for the sector on a relative basis.
The portfolio’s industrials sector also detracted from performance, primarily due to an underweight and stock selection in the machinery industry and to stock selection among transportation infrastructure companies. In particular, our overweight position in Central Japan Railway, a provider of passenger railway services in Japan, detracted from results.
Outlook
NT International Growth primarily invests in companies located in developed countries around the world (excluding the United States). Although we expect further volatility throughout the international stock markets, we will continue to focus on finding companies with sustainable growth characteristics and promising long-term outlooks.
6
NT International Growth | ||
Top Ten Holdings as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Nestle SA | 1.9% | 2.2% |
ENI SpA | 1.9% | 2.2% |
Banco Santander SA | 1.9% | 1.0% |
BG Group plc | 1.9% | 2.4% |
Saipem SpA | 1.7% | 1.2% |
National Bank of Greece SA | 1.6% | 1.3% |
BHP Billiton Ltd. | 1.6% | 1.1% |
Koninklijke Ahold NV | 1.6% | 1.5% |
Total SA | 1.5% | 2.0% |
iShares MSCI Japan Index Fund | 1.5% | 1.7% |
Types of Investments in Portfolio | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Foreign Common Stocks & Rights | 98.7% | 99.3% |
Temporary Cash Investments | 0.9% | 0.7% |
Other Assets and Liabilities | 0.4% | —(1) |
(1) Category is less than 0.05% of total net assets. | ||
Investments by Country as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
United Kingdom | 17.2% | 21.9% |
Japan | 13.8% | 14.2% |
Switzerland | 10.0% | 9.6% |
Germany | 6.5% | 6.8% |
France | 6.0% | 7.4% |
Italy | 4.9% | 4.2% |
Australia | 4.4% | 4.4% |
Spain | 3.3% | 3.8% |
People’s Republic of China | 3.0% | 1.2% |
South Korea | 2.9% | 0.4% |
Canada | 2.8% | 3.8% |
Brazil | 2.6% | 2.1% |
Other Countries | 21.3% | 19.5% |
Cash and Equivalents(2) | 1.3% | 0.7% |
(2) Includes temporary cash investments and other assets and liabilities. |
7
Performance | ||||
NT Emerging Markets | ||||
Total Returns as of May 31, 2009 | ||||
Average | ||||
Annual Returns | ||||
6 months(1) | 1 year | Since Inception | Inception Date | |
Institutional Class | 38.15% | -43.73% | -4.73% | 5/12/06 |
MSCI EM Growth Index(2) | 48.09% | -37.52% | 0.84%(3) | — |
MSCI EM Index | 48.62% | -34.36% | -1.03% | — |
(1) | Total returns for periods less than one year are not annualized. |
(2) | In April of 2009, the fund’s benchmark changed from the MSCI EM Index to the MSCI EM Growth Index. The fund’s investment advisor believes this index better represents the fund’s portfolio composition. |
(3) | Since 5/31/2006, the date nearest the fund’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.
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.
8
NT Emerging Markets
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65837nx13x1.jpg)
One-Year Returns Over Life of Class | ||||
Periods ended May 31 | ||||
2006* | 2007 | 2008 | 2009 | |
Institutional Class | -8.50% | 46.74% | 14.15% | -43.73% |
MSCI EM Growth Index | — | 38.64% | 18.37% | -37.52% |
MSCI EM Index | -12.21% | 38.16% | 21.67% | -34.36% |
* From 5/12/06, the Institutional Class’s inception date. MSCI EM Growth Index data from 5/31/06, the date nearest the fund’s inception for which | ||||
data are available. Not annualized. | ||||
Total Annual Fund Operating Expenses | ||||
Institutional Class | 1.67% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent ; month end, please call 1-800-345-2021 or visit americancentury.com. 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.
9
Portfolio Commentary |
NT Emerging Markets |
Portfolio Manager: Patricia Ribeiro
Performance Summary
The NT Emerging Markets portfolio advanced 38.15%* for the six months ended May 31, 2009, underperforming its benchmark, the MSCI Emerging Markets Growth Index, which gained 48.09%.
The global economic recession and worldwide financial crisis led to plummeting returns for emerging market stocks during the first three months of the reporting period. Then, in mid-March, optimism surrounding global governments’ efforts to battle the recession and restore credit flow and economic growth helped generate a strong worldwide stock market rally.
Emerging market stocks significantly outperformed the developed markets, which, as measured by the MSCI EAFE Index, returned 15.10% for the six-month period. In particular, rising commodity prices in the second half of the reporting period helped boost performance among the natural resources-rich developing markets.
Former Laggards Led Rally
Within the MSCI Emerging Markets Growth Index, every sector and nearly every country showed double-digit gains for the period. The strong rally that propelled stocks in the second half of the reporting period was primarily driven by former market laggards. In general, these companies outperformed even the higher-quality companies that had been reporting strong earnings growth—the type of companies we tend to favor in our portfolio. This factor accounted for the bulk of the portfolio’s performance shortfall relative to the benchmark.
India Led Detractors; Mexico Led Contributors
From a regional perspective, the portfolio’s largest detractors to performance included India, South Korea, and Israel. Stock selection primarily accounted for the portfolio’s poor relative performance.
On the positive side, Mexico, Malaysia, and Turkey represented the portfolio’s leading country contributors. Stock selection was effective in each country, while underweights in Mexico and Malaysia also helped.
All Sectors Showed Positive Returns
On an absolute basis, all of the portfolio’s 10 sectors posted gains for the six-month period—and other than in the health care sector, all were strong double-digit gains. Relative to the benchmark, the portfolio’s information technology, materials, and energy sectors detracted from results, while its telecommunication services, utilities, and consumer staples sectors contributed positively to relative performance.
*Total returns for periods less than one year are not annualized.
10
NT Emerging Markets
Our poor relative performance in the information technology sector was primarily due to portfolio-only holding Rolta India. Stock in the India-based geospatial mapping systems company plummeted in the wake of a scandal involving Indian technology outsourcing company Satyam, which falsified its financial statements. Subsequent rumors implicated Rolta, which responded with a firm denial of any wrongdoing.
In the materials sector, our stock selection and an underweight in the metals and mining industry accounted for the bulk of the lagging results. In particular, our underweight position in Brazilian iron ore miner Companhia Vale do Rio Doce detracted from performance. The company, a leading supplier to the global steel industry, said it anticipates stable demand levels from China, a large steel producer.
The portfolio’s outperformance in the telecommunication services sector was largely due to our overweight position in Vivo Participacoes, a Brazil-based wireless telecommunication provider. The company reported sharp increases in its net income, revenues, and subscriber base. Stock selection in the electric utilities industry drove the strong overall performance in the portfolio’s utilities sector. In particular, the portfolio benefited from our overweight position in India’s state-owned Power Grid Corp.
Outlook
NT Emerging Markets primarily invests in companies located in emerging market countries. We anticipate continued volatility throughout the global financial markets is likely. As we navigate this turbulence, we will continue to focus on finding companies we believe possess sustainable growth characteristics, including the ability to grow earnings and revenues, and promising long-term outlooks.
11
NT Emerging Markets | ||
Top Ten Holdings as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Petroleo Brasileiro SA ADR | 4.9% | 3.5% |
Vale SA Preference Shares | 4.2% | — |
Samsung Electronics Co. Ltd. | 3.5% | 2.2% |
China Mobile Ltd. ADR | 2.6% | 3.1% |
Taiwan Semiconductor Manufacturing Co. Ltd. | 2.4% | 2.1% |
Hon Hai Precision Industry Co. Ltd. | 2.2% | 0.6% |
America Movil SAB de CV ADR, Series L | 2.2% | 1.1% |
OAO Gazprom ADR | 2.1% | 2.1% |
Itau Unibanco Banco Holding SA Preference Shares | 2.0% | — |
Reliance Industries Ltd. | 2.0% | — |
Types of Investments in Portfolio | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Foreign Common Stocks | 98.3% | 96.9% |
Temporary Cash Investments | 0.7% | 2.0% |
Other Assets and Liabilities | 1.0% | 1.1% |
Investments by Country as of May 31, 2009 | ||
% of net assets | % of net assets | |
as of 5/31/09 | as of 11/30/08 | |
Brazil | 16.7% | 12.9% |
Taiwan (Republic of China) | 14.2% | 7.0% |
People’s Republic of China | 13.7% | 15.7% |
South Korea | 11.7% | 10.6% |
India | 8.5% | 6.4% |
Russian Federation | 6.7% | 4.3% |
South Africa | 6.7% | 7.4% |
Hong Kong | 5.2% | 5.0% |
Mexico | 2.8% | 3.0% |
Other Countries | 12.1% | 24.6% |
Cash and Equivalents* | 1.7% | 3.1% |
* Includes temporary cash investments and other assets and liabilities. |
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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 December 1, 2008 to May 31, 2009.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or Institutional Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. We will not charge the fee as long as you choose to manage your accounts exclusively online. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical 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.
13
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses Paid | ||
Account Value | Account Value | During Period* | Annualized | |
12/1/08 | 5/31/09 | 12/1/08 – 5/31/09 | Expense Ratio* | |
NT International Growth | ||||
Actual | $1,000 | $1,161.50 | $6.52 | 1.21% |
Hypothetical | $1,000 | $1,018.90 | $6.09 | 1.21% |
NT Emerging Markets | ||||
Actual | $1,000 | $1,381.50 | $9.56 | 1.61% |
Hypothetical | $1,000 | $1,016.90 | $8.10 | 1.61% |
* | Expenses are equal to the fund’s annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. |
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Schedule of Investments |
NT International Growth |
MAY 31, 2009 (UNAUDITED) | ||||||
Shares | Value | Shares | Value | |||
Common Stocks — 98.7% | LVMH Moet Hennessy | |||||
Louis Vuitton SA | 3,500 | $ 290,976 | ||||
AUSTRALIA — 4.4% | Publicis Groupe | 7,200 | 233,776 | |||
BHP Billiton Ltd. | 67,831 | $ 1,905,655 | Total SA | 31,524 | 1,824,720 | |
Commonwealth Bank of Australia | 29,300 | 832,779 | 7,245,247 | |||
CSL Ltd. | 50,934 | 1,192,733 | GERMANY — 6.5% | |||
Origin Energy Ltd. | 22,500 | 267,072 | Allianz SE | 7,800 | 768,928 | |
Rio Tinto Ltd. | 7,046 | 367,926 | BASF SE | 25,300 | 1,068,414 | |
Wesfarmers Ltd. | 42,600 | 731,566 | Bayer AG | 10,700 | 609,276 | |
5,297,731 | Daimler AG | 10,800 | 396,096 | |||
BELGIUM — 1.3% | Deutsche Boerse AG | 14,440 | 1,260,762 | |||
Anheuser-Busch InBev NV | 45,108 | 1,594,341 | Fresenius Medical Care | |||
BERMUDA — 0.3% | AG & Co. KGaA | 18,670 | 782,519 | |||
Seadrill Ltd. | 24,200 | 355,657 | Muenchener | |||
BRAZIL — 2.6% | Rueckversicherungs-Gesellschaft | |||||
Petroleo Brasileiro SA ADR | 16,200 | 713,286 | AG | 12,500 | 1,753,864 | |
Redecard SA | 50,800 | 733,238 | SAP AG | 15,400 | 662,976 | |
Vale SA Preference Shares | 99,900 | 1,648,584 | Wacker Chemie AG | 3,800 | 475,669 | |
3,095,108 | 7,778,504 | |||||
CANADA — 2.8% | GREECE — 1.6% | |||||
Canadian National Railway Co. | 20,600 | 886,644 | National Bank of Greece SA(1) | 69,684 | 1,928,661 | |
EnCana Corp. | 14,576 | 807,948 | HONG KONG — 1.4% | |||
Precision Drilling Trust | 21,600 | 126,425 | Hang Seng Bank Ltd. | 38,300 | 550,367 | |
Research In Motion Ltd.(1) | 19,500 | 1,533,480 | Li & Fung Ltd. | 180,000 | 484,319 | |
3,354,497 | Link Real Estate | |||||
Investment Trust (The) | 346,500 | 681,553 | ||||
CZECH REPUBLIC — 0.5% | ||||||
1,716,239 | ||||||
CEZ AS | 12,900 | 582,800 | ||||
INDIA — 1.5% | ||||||
DENMARK — 1.7% | ||||||
Bharat Heavy Electricals Ltd. | 8,200 | 380,532 | ||||
Novo Nordisk A/S B Shares | 20,600 | 1,072,705 | ||||
Housing Development | ||||||
Vestas Wind Systems A/S(1) | 13,800 | 1,009,834 | Finance Corp. Ltd. | 8,167 | 378,337 | |
2,082,539 | ICICI Bank Ltd. ADR | 16,600 | 516,924 | |||
FINLAND — 0.5% | Larsen & Toubro Ltd. | 15,900 | 473,793 | |||
Nokia Oyj | 43,000 | 658,598 | 1,749,586 | |||
FRANCE — 6.0% | INDONESIA — 0.2% | |||||
Air Liquide SA | 9,000 | 837,193 | PT Bank Rakyat Indonesia | 297,000 | 181,338 | |
ALSTOM SA | 6,700 | 425,600 | IRELAND — 2.3% | |||
BNP Paribas | 20,400 | 1,418,281 | CRH plc | 30,309 | 717,858 | |
Cie Generale des Etablissements | Experian plc | 173,900 | 1,287,735 | |||
Michelin, Class B | 12,500 | 760,247 | ||||
Ryanair Holdings plc ADR(1) | 26,455 | 770,369 | ||||
Cie Generale d’Optique | ||||||
Essilor International SA | 8,700 | 400,790 | 2,775,962 | |||
Danone SA | 5,282 | 263,187 | ISRAEL — 1.0% | |||
Lafarge SA(1) | 5,590 | 383,816 | Teva Pharmaceutical | |||
Industries Ltd. ADR | 27,000 | 1,251,720 | ||||
Legrand SA | 19,200 | 406,661 |
15
NT International Growth
Shares | Value | Shares | Value | |||
ITALY — 4.9% | NETHERLANDS — 2.1% | |||||
ENI SpA | 94,111 | $ 2,278,216 | ASML Holding NV | 17,700 | $ 365,162 | |
Intesa Sanpaolo SpA(1) | 198,800 | 719,156 | Koninklijke Ahold NV | 154,100 | 1,868,752 | |
Luxottica Group SpA(1) | 5,100 | 106,200 | Koninklijke KPN NV | 22,400 | 294,691 | |
Saipem SpA | 81,662 | 2,085,424 | 2,528,605 | |||
Snam Rete Gas SpA | 164,564 | 712,719 | PEOPLE’S REPUBLIC OF CHINA — 3.0% | |||
5,901,715 | Baidu, Inc. ADR(1) | 1,400 | 369,530 | |||
JAPAN — 13.8% | China Merchants Bank | |||||
Benesse Corp. | 16,100 | 676,795 | Co. Ltd. H Shares | 376,350 | 771,339 | |
Central Japan Railway Co. | 100 | 640,871 | Ctrip.com International Ltd. ADR | 12,600 | 515,970 | |
Daikin Industries Ltd. | 7,500 | 231,846 | iShares FTSE/Xinhua | |||
China 25 Index Fund | 11,400 | 425,676 | ||||
FAST RETAILING CO. LTD. | 3,600 | 427,715 | ||||
NetEase.com, Inc. ADR(1) | 15,600 | 539,448 | ||||
Honda Motor Co. Ltd. | 47,400 | 1,375,934 | ||||
Shanda Interactive | ||||||
HOYA Corp. | 27,300 | 571,926 | Entertainment Ltd. ADR(1) | 4,400 | 253,528 | |
iShares MSCI Japan Index Fund | 192,700 | 1,805,599 | Tencent Holdings Ltd. | 66,000 | 739,267 | |
Japan Steel Works Ltd. (The) | 55,000 | 718,510 | 3,614,758 | |||
Kurita Water Industries Ltd. | 15,300 | 424,046 | SINGAPORE — 0.9% | |||
Mitsubishi Corp. | 63,700 | 1,208,885 | United Overseas Bank Ltd. | 104,000 | 1,028,918 | |
Mitsubishi Estate Co. Ltd. | 39,000 | 643,112 | SOUTH KOREA — 2.9% | |||
Mitsubishi UFJ Financial | Hyundai Motor Co. | 20,200 | 1,124,539 | |||
Group, Inc. | 148,300 | 935,819 | ||||
KB Financial Group, Inc.(1) | 7,900 | 256,214 | ||||
Murata Manufacturing Co. Ltd. | 12,800 | 547,531 | ||||
Nidec Corp. | 10,300 | 592,298 | POSCO | 2,100 | 703,957 | |
Nintendo Co. Ltd. | 1,300 | 353,175 | Samsung Electronics Co. Ltd. | 3,200 | 1,434,807 | |
Nitori Co. Ltd. | 16,000 | 970,820 | 3,519,517 | |||
Rakuten, Inc. | 2,500 | 1,374,855 | SPAIN — 3.3% | |||
Sharp Corp. | 18,000 | 205,040 | Banco Santander SA | 211,025 | 2,275,138 | |
SMC Corp. | 5,600 | 598,626 | Indra Sistemas SA | 23,900 | 544,645 | |
SOFTBANK CORP. | 38,300 | 699,901 | Telefonica SA | 54,100 | 1,168,644 | |
Sony Financial Holdings, Inc. | 224 | 654,656 | 3,988,427 | |||
Terumo Corp. | 12,100 | 508,446 | SWEDEN — 0.6% | |||
Electrolux AB(1) | 18,500 | 236,535 | ||||
Unicharm Corp. | 6,700 | 468,078 | ||||
16,634,484 | H & M Hennes & Mauritz | |||||
AB B Shares | 9,000 | 429,864 | ||||
LUXEMBOURG — 1.8% | 666,399 | |||||
Millicom International | ||||||
Cellular SA(1) | 15,006 | 910,864 | SWITZERLAND — 10.0% | |||
SES SA Fiduciary | ABB Ltd.(1) | 47,915 | 789,702 | |||
Depositary Receipt | 59,501 | 1,190,618 | Actelion Ltd.(1) | 9,000 | 465,597 | |
2,101,482 | Adecco SA | 17,700 | 772,342 | |||
MEXICO — 0.3% | Credit Suisse Group AG | 24,900 | 1,114,305 | |||
America Movil SAB de CV ADR, | Julius Baer Holding AG | 31,300 | 1,333,641 | |||
Series L | 9,300 | 356,469 | Lonza Group AG | 5,200 | 537,654 | |
MULTI-NATIONAL — 0.9% | Nestle SA | 63,500 | 2,307,494 | |||
iShares MSCI EAFE Growth | Novartis AG | 36,165 | 1,445,922 | |||
Index Fund | 10,162 | 480,053 | Roche Holding AG | 11,866 | 1,619,252 | |
iShares MSCI EAFE Index Fund | 6,300 | 298,620 | SGS SA | 300 | 375,508 | |
iShares MSCI Emerging Markets | ||||||
Index Fund | 9,100 | 302,666 | Syngenta AG | 5,107 | 1,243,273 | |
1,081,339 | 12,004,690 |
16
NT International Growth | ||||||
Shares | Value | Shares | Value | |||
TAIWAN (REPUBLIC OF CHINA) — 1.9% | Temporary Cash Investments — 0.9% | |||||
AU Optronics Corp. | 316,599 | $ 329,007 | JPMorgan U.S. Treasury | |||
AU Optronics Corp. ADR | 92,100 | 956,919 | Plus Money Market Fund | |||
Taiwan Semiconductor | Agency Shares | 85,072 | $ 85,072 | |||
Manufacturing Co. Ltd. ADR | 58,100 | 635,614 | Repurchase Agreement, Goldman Sachs | |||
Wistron Corp. | 219,000 | 348,021 | Group, Inc., (collateralized by various U.S. | |||
2,269,561 | Treasury obligations, 4.75%, 2/15/37, valued | |||||
at $1,022,802), in a joint trading account | ||||||
TURKEY — 0.5% | at 0.10%, dated 5/29/09, due 6/1/09 | |||||
Turkiye Garanti Bankasi AS(1) | 232,600 | 588,898 | (Delivery value $1,000,008) | 1,000,000 | ||
UNITED KINGDOM — 17.2% | TOTAL TEMPORARY | |||||
Admiral Group plc | 45,876 | 640,501 | CASH INVESTMENTS | |||
AMEC plc | 33,700 | 368,577 | (Cost $1,085,072) | 1,085,072 | ||
AstraZeneca plc | 25,600 | 1,067,154 | TOTAL INVESTMENT | |||
SECURITIES — 99.6% | ||||||
Autonomy Corp. plc(1) | 25,198 | 631,276 | (Cost $106,614,972) | 119,738,849 | ||
Barclays plc | 90,500 | 436,285 | OTHER ASSETS | |||
BG Group plc | 123,231 | 2,258,356 | AND LIABILITIES — 0.4% | 439,486 | ||
British Sky Broadcasting | TOTAL NET ASSETS — 100.0% | $120,178,335 | ||||
Group plc | 138,800 | 1,001,376 | ||||
Cadbury plc | 13,400 | 117,124 | Market Sector Diversification | |||
Capita Group plc (The) | 109,401 | 1,269,123 | (as a % of net assets) | |||
Carnival plc | 32,000 | 833,508 | Financials | 20.6% | ||
Cobham plc | 103,160 | 298,585 | Consumer Discretionary | 13.0% | ||
Compass Group plc | 205,300 | 1,188,086 | Industrials | 10.8% | ||
GlaxoSmithKline plc | 54,672 | 921,534 | Information Technology | 10.0% | ||
HSBC Holdings plc | 185,978 | 1,671,918 | Health Care | 9.9% | ||
Intercontinental Hotels Group plc | 27,700 | 295,124 | Energy | 9.2% | ||
Kingfisher plc | 278,400 | 803,736 | Consumer Staples | 8.6% | ||
Man Group plc | 62,860 | 248,975 | Materials | 7.8% | ||
Next plc | 16,900 | 402,040 | Telecommunication Services | 3.6% | ||
Reckitt Benckiser Group plc | 31,108 | 1,349,442 | Diversified | 2.8% | ||
Reed Elsevier plc | 1,498 | 12,161 | Utilities | 2.4% | ||
Scottish & Southern Energy plc | 82,106 | 1,550,641 | Cash and Equivalents* | 1.3% | ||
Standard Chartered plc | 23,514 | 480,247 | ||||
Tesco plc | 266,082 | 1,576,595 | *Includes temporary cash investments and other assets and liabilities. | |||
TUI Travel plc | 86,000 | 348,207 | ||||
Vodafone Group plc | 504,500 | 949,416 | ||||
20,719,987 | ||||||
TOTAL COMMON STOCKS | ||||||
(Cost $105,529,900) | 118,653,777 | |||||
Notes to Schedule of Investments | ||||||
ADR = American Depositary Receipt | FTSE = Financial Times Stock Exchange | |||||
EAFE = Europe, Australasia, and Far East | MSCI = Morgan Stanley Capital International | |||||
(1) Non-income producing. | ||||||
See Notes to Financial Statements. |
17
NT Emerging Markets
MAY 31, 2009 (UNAUDITED) | ||||||
Shares | Value | Shares | Value | |||
Common Stocks — 98.3% | INDONESIA — 2.3% | |||||
BRAZIL — 16.7% | PT Bank Rakyat Indonesia | 560,500 | $ 342,223 | |||
ALL - America Latina | PT Bumi Resources Tbk | 1,613,000 | 308,450 | |||
Logistica SA | 37,200 | $ 217,044 | PT Perusahaan Gas Negara | 1,217,000 | 341,635 | |
Banco Bradesco SA | 992,308 | |||||
Preference Shares | 34,400 | 522,224 | ISRAEL — 1.0% | |||
Global Village Telecom | Teva Pharmaceutical | |||||
Holding SA(1) | 20,900 | 351,697 | Industries Ltd. ADR | 9,040 | 419,094 | |
Itau Unibanco Banco Holding SA | LUXEMBOURG — 0.7% | |||||
Preference Shares | 53,618 | 867,927 | Evraz Group SA GDR | 13,293 | 314,951 | |
Natura Cosmeticos SA | 21,400 | 275,820 | MALAYSIA — 1.2% | |||
Net Servicos de Comunicacao SA | Bumiputra - Commerce | |||||
Preference Shares(1) | 10,800 | 107,034 | Holdings Bhd | 138,300 | 338,678 | |
Petroleo Brasileiro SA ADR | 48,160 | 2,120,485 | Kuala Lumpur Kepong Bhd | 49,900 | 164,710 | |
Redecard SA | 12,350 | 178,258 | 503,388 | |||
Vale SA Preference Shares | 110,800 | 1,828,459 | MEXICO — 2.8% | |||
Vivo Particpacoes SA ADR | 17,282 | 348,578 | America Movil SAB | |||
Votorantim Celulose e Papel SA | de CV ADR, Series L | 24,309 | 931,764 | |||
Preference Shares(1) | 32,300 | 384,954 | Grupo Financiero Banorte, | |||
7,202,480 | SAB de CV | 111,249 | 261,822 | |||
CZECH REPUBLIC — 0.5% | 1,193,586 | |||||
CEZ AS | 4,590 | 207,368 | PANAMA — 0.1% | |||
HONG KONG — 5.2% | Copa Holdings SA, Class A | 1,890 | 65,810 | |||
China Mobile Ltd. ADR | 22,824 | 1,123,169 | PEOPLE’S REPUBLIC OF CHINA — 13.7% | |||
China Overseas Land & | Agile Property Holdings Ltd. | 252,000 | 313,068 | |||
Investment Ltd. | 160,000 | 338,365 | Asia Cement China | |||
China Resources Land Ltd. | 98,000 | 229,562 | Holdings Corp.(1) | 545,500 | 436,834 | |
CNOOC Ltd. | 410,000 | 542,018 | Bank of China Ltd. | 575,000 | 258,914 | |
2,233,114 | BYD Co. Ltd. H Shares(1) | 56,000 | 224,249 | |||
HUNGARY — 0.6% | Changyou.com Ltd. ADR(1) | 4,947 | 162,756 | |||
OTP Bank plc(1) | 14,551 | 259,194 | China Construction | |||
INDIA — 8.5% | Bank Corp. H Shares | 421,000 | 274,737 | |||
Bank of Baroda | 25,528 | 238,032 | China High Speed Transmission | |||
Bharat Heavy Electricals Ltd. | 7,224 | 335,240 | Equipment Group Co. Ltd. | 242,000 | 513,310 | |
Grasim Industries Ltd. | 6,516 | 291,036 | China Life Insurance | |||
Co. Ltd. H Shares | 216,000 | 790,213 | ||||
HDFC Bank Ltd.(1) | 12,871 | 395,182 | ||||
China National Building | ||||||
ICICI Bank Ltd. | 21,307 | 335,390 | Material Co. Ltd. H Shares | 110,000 | 241,121 | |
Infosys Technologies Ltd. | 10,167 | 347,754 | China Shenhua Energy | |||
JSW Steel Ltd.(1) | 27,275 | 320,799 | Co. Ltd. H Shares | 94,000 | 313,832 | |
Maruti Suzuki India Ltd. | 10,271 | 224,206 | China Zhongwang | |||
Holdings Ltd.(1) | 128,800 | 118,794 | ||||
Power Grid Corp. of India Ltd. | 49,121 | 120,405 | ||||
Reliance Industries Ltd.(1) | 17,714 | 855,037 | Foxconn International | |||
Holdings Ltd.(1) | 173,000 | 124,045 | ||||
Sesa Goa Ltd. | 55,632 | 195,681 | Guangzhou R&F Properties | |||
3,658,762 | Co. Ltd. H Shares | 110,400 | 252,768 | |||
Industrial & Commercial | ||||||
Bank of China Ltd. H Shares | 1,032,000 | 652,177 |
18
NT Emerging Markets
Shares | Value | Shares | Value | |||
Ping An Insurance Group Co. | TAIWAN (REPUBLIC OF CHINA) — 14.2% | |||||
of China Ltd. H Shares | 30,500 | $ 212,415 | Acer, Inc. | 70,000 | $ 127,727 | |
Sino-Ocean Land Holdings Ltd. | 220,000 | 226,101 | Asia Cement Corp. | 250,267 | 283,239 | |
Tencent Holdings Ltd. | 54,200 | 607,095 | AU Optronics Corp. | 373,000 | 387,618 | |
Zhuzhou CSR Times Electric | Catcher Technology Co. Ltd. | 89,000 | 253,751 | |||
Co. Ltd. H Shares | 144,000 | 211,229 | Cathay Financial Holding Co. Ltd. | 180,000 | 294,458 | |
5,933,658 | Hon Hai Precision | |||||
PERU — 1.1% | Industry Co. Ltd. | 250,050 | 952,029 | |||
Credicorp Ltd. | 8,157 | 491,214 | HTC Corp. | 24,000 | 388,970 | |
POLAND — 0.5% | Huaku Development Co. Ltd. | 95,000 | 260,430 | |||
KGHM Polska Miedz SA | 9,189 | 202,630 | Hung Poo Real Estate | |||
RUSSIAN FEDERATION — 6.7% | Development Corp. | 144,000 | 223,237 | |||
CTC Media, Inc.(1) | 41,831 | 414,545 | MediaTek, Inc. | 29,190 | 362,763 | |
OAO Gazprom ADR | 38,173 | 896,679 | Shin Zu Shing Co. Ltd. | 55,000 | 264,690 | |
OAO LUKOIL | 10,142 | 532,577 | Taiwan Fertilizer Co. Ltd. | 87,000 | 279,840 | |
Sberbank | 357,123 | 509,841 | Taiwan Semiconductor | |||
Vimpel-Communications ADR(1) | 20,366 | 265,980 | Manufacturing Co. Ltd. | 545,194 | 1,023,343 | |
Wimm-Bill-Dann Foods | U-Ming Marine Transport Corp. | 117,000 | 243,713 | |||
OJSC ADR(1) | 5,414 | 291,598 | Wistron Corp. | 341,000 | 541,895 | |
2,911,220 | Yuanta Financial Holding Co. Ltd. | 295,000 | 221,474 | |||
SINGAPORE — 0.7% | 6,109,177 | |||||
Wilmar International Ltd. | 91,000 | 310,556 | THAILAND — 1.0% | |||
SOUTH AFRICA — 6.7% | Banpu Public Co. Ltd. NVDR | 20,300 | 188,494 | |||
Aspen Pharmacare | Kasikornbank PCL | 139,000 | 239,584 | |||
Holdings Ltd.(1) | 45,806 | 276,453 | 428,078 | |||
Gold Fields Ltd. ADR | 15,882 | 215,678 | TURKEY — 1.8% | |||
Harmony Gold Mining Co. Ltd.(1) | 20,803 | 253,221 | Turk Hava Yollari AO | 37,777 | 219,874 | |
Impala Platinum Holdings Ltd. | 23,992 | 583,173 | Turkiye Garanti Bankasi AS(1) | 229,646 | 581,419 | |
MTN Group Ltd. | 33,904 | 494,407 | 801,293 | |||
Naspers Ltd. N Shares | 19,423 | 466,992 | UNITED KINGDOM — 0.6% | |||
Netcare Ltd.(1) | 155,509 | 194,939 | Antofagasta plc | 23,697 | 244,810 | |
Sasol Ltd. | 10,365 | 391,949 | TOTAL COMMON STOCKS | |||
2,876,812 | (Cost $31,455,544) | 42,400,602 | ||||
SOUTH KOREA — 11.7% | Temporary Cash Investments — 0.7% | |||||
CJ Internet Corp. | 21,214 | 314,369 | Repurchase Agreement, Goldman Sachs | |||
Hyundai Development Co. | 8,000 | 263,021 | Group, Inc., (collateralized by various U.S. | |||
Hyundai Engineering & | Treasury obligations, 4.75%, 2/15/37, | |||||
Construction Co. Ltd. | 6,244 | 322,440 | valued at $306,841), in a joint trading | |||
account at 0.10%, dated 5/29/09, due | ||||||
Hyundai Mobis | 4,815 | 455,872 | 6/1/09 (Delivery value $300,003) | |||
Hyundai Motor Co. | 6,150 | 342,372 | (Cost $300,000) | 300,000 | ||
LG Electronics, Inc. | 6,532 | 629,915 | TOTAL INVESTMENT | |||
MegaStudy Co. Ltd. | 1,113 | 198,760 | SECURITIES — 99.0% | |||
NHN Corp.(1) | 2,400 | 382,485 | (Cost $31,755,544) | 42,700,602 | ||
POSCO | 1,068 | 358,012 | OTHER ASSETS | |||
AND LIABILITIES — 1.0% | 438,080 | |||||
Samsung Electronics Co. Ltd. | 3,379 | 1,515,066 | TOTAL NET ASSETS — 100.0% | $43,138,682 | ||
Shinhan Financial | ||||||
Group Co. Ltd.(1) | 10,160 | 258,787 | ||||
5,041,099 |
19
NT Emerging Markets | |||
Market Sector Diversification | Notes to Schedule of Investments | ||
(as a % of net assets) | ADR = American Depositary Receipt | ||
Financials | 24.0% | GDR = Global Depositary Receipt | |
Information Technology | 17.2% | NVDR = Non-Voting Depositary Receipt | |
Materials | 15.2% | OJSC = Open Joint Stock Company | |
Energy | 14.2% | ||
Telecommunication Services | 8.1% | (1) Non-income producing. | |
Consumer Discretionary | 7.3% | ||
Industrials | 6.2% | ||
Consumer Staples | 2.4% | See Notes to Financial Statements. | |
Health Care | 2.1% | ||
Utilities | 1.6% | ||
Cash and Equivalents* | 1.7% | ||
*Includes temporary cash investments and other assets and liabilities. |
20
Statement of Assets and Liabilities | ||
MAY 31, 2009 (UNAUDITED) | ||
NT International | NT Emerging | |
Growth | Markets | |
Assets | ||
Investment securities, at value (cost of $106,614,972 and $31,755,544, respectively) | $119,738,849 | $42,700,602 |
Foreign currency holdings, at value (cost of $- and $204,712, respectively) | — | 205,619 |
Receivable for investments sold | 2,651,914 | 922,891 |
Receivable for capital shares sold | 521,793 | 200,781 |
Dividends and interest receivable | 462,161 | 182,198 |
123,374,717 | 44,212,091 | |
Liabilities | ||
Disbursements in excess of demand deposit cash | 40,932 | 79,074 |
Foreign currency overdraft payable, at value (cost of $19,437 and $-, respectively) | 6,276 | — |
Payable for investments purchased | 2,806,407 | 872,688 |
Payable for capital shares redeemed | 214,924 | 44,781 |
Accrued management fees | 115,281 | 55,625 |
Accrued foreign taxes | 12,562 | 21,241 |
3,196,382 | 1,073,409 | |
Net Assets | $120,178,335 | $43,138,682 |
Institutional Class Capital Shares, $0.01 Par Value | ||
Authorized | 50,000,000 | 50,000,000 |
Outstanding | 16,725,118 | 6,130,868 |
Net Asset Value Per Share | $7.19 | $7.04 |
Net Assets Consist of: | ||
Capital (par value and paid-in surplus) | $134,554,011 | $ 46,451,324 |
Undistributed net investment income | 1,294,175 | 96,351 |
Accumulated net realized loss on investment and foreign currency transactions | (28,813,171) | (14,335,161) |
Net unrealized appreciation on investments and translation of assets | ||
and liabilities in foreign currencies | 13,143,320 | 10,926,168 |
$120,178,335 | $ 43,138,682 | |
See Notes to Financial Statements. |
21
Statement of Operations | ||
FOR THE SIX MONTHS ENDED MAY 31, 2009 (UNAUDITED) | ||
NT International | NT Emerging | |
Growth | Markets | |
Investment Income (Loss) | ||
Income: | ||
Dividends (net of foreign taxes withheld of $216,262 and $20,034, respectively) | $ 1,863,499 | $ 374,479 |
Interest | 1,089 | 386 |
1,864,588 | 374,865 | |
Expenses: | ||
Management fees | 558,149 | 268,433 |
Directors’ fees and expenses | 1,598 | 581 |
Other expenses | 344 | 116 |
560,091 | 269,130 | |
Net investment income (loss) | 1,304,497 | 105,735 |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment transactions | (13,808,316) | (4,782,183) |
Foreign currency transactions | (2,250,027) | (2,014,410) |
(16,058,343) | (6,796,593) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investments (net of foreign taxes accrued of $16,301 and $22,465, respectively) | 20,740,313 | 14,700,286 |
Translation of assets and liabilities in foreign currencies | 9,243,938 | 3,761,338 |
29,984,251 | 18,461,624 | |
Net realized and unrealized gain (loss) | 13,925,908 | 11,665,031 |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ 15,230,405 | $ 11,770,766 |
See Notes to Financial Statements. |
22
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2009 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2008 | |||||
NT International Growth | NT Emerging Markets | ||||
Increase (Decrease) in Net Assets | 2009 | 2008 | 2009 | 2008 | |
Operations | |||||
Net investment income (loss) | $ 1,304,497 | $ 1,057,236 | $ 105,735 | $ 281,229 | |
Net realized gain (loss) | (16,058,343) | (12,540,805) | (6,796,593) | (7,576,355) | |
Change in net unrealized | |||||
appreciation (depreciation) | 29,984,251 | (29,526,599) | 18,461,624 | (14,838,418) | |
Net increase (decrease) in net assets | |||||
resulting from operations | 15,230,405 | (41,010,168) | 11,770,766 | (22,133,544) | |
Distributions to Shareholders | |||||
From net investment income | (1,011,101) | (585,193) | (152,834) | (292,689) | |
From net realized gains | — | (1,418,391) | — | (3,880,783) | |
Decrease in net assets from distributions | (1,011,101) | (2,003,584) | (152,834) | (4,173,472) | |
Capital Share Transactions | |||||
Proceeds from shares sold | 64,215,335 | 47,294,600 | 20,327,817 | 25,420,763 | |
Payments for shares redeemed | (14,115,959) | (16,124,105) | (9,521,722) | (6,777,463) | |
Net increase (decrease) in net assets | |||||
from capital share transactions | 50,099,376 | 31,170,495 | 10,806,095 | 18,643,300 | |
Net increase (decrease) in net assets | 64,318,680 | (11,843,257) | 22,424,027 | (7,663,716) | |
Net Assets | |||||
Beginning of period | 55,859,655 | 67,702,912 | 20,714,655 | 28,378,371 | |
End of period | $120,178,335 | $ 55,859,655 | $ 43,138,682 | $ 20,714,655 | |
Undistributed net investment income | $1,294,175 | $1,000,779 | $96,351 | $143,450 | |
Transactions in Shares of the Funds | |||||
Sold | 10,084,049 | 4,992,480 | 3,695,031 | 2,804,035 | |
Redeemed | (2,241,220) | (1,433,404) | (1,611,821) | (508,834) | |
Net increase (decrease) | |||||
in shares of the funds | 7,842,829 | 3,559,076 | 2,083,210 | 2,295,201 | |
See Notes to Financial Statements. |
23
Notes to Financial Statements |
MAY 31, 2009 (UNAUDITED)
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. 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 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. Investments in open-end management investment companies are valued at the reported net asset value. 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 the Board of Directors or its designee, in accordance with procedures adopted by the Board of Directors, 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.
24
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 fees and expenses that reduce their value.
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. The funds may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and 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 certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
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. All tax years for the funds remain subject to examination by tax authorities. Additionally, non-U.S. tax returns filed by the funds due to investments in certain foreign securities remain subject to examination by the relevant taxing authority for 7 years from the date of filing. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Accordingly, no provision has been made for federal or state income taxes. Interest and penalties associated with any federal or state income tax obligations, if any, are recorded as interest expense.
Distributions to Shareholders — Distributions to shareholders are recorded on the ex-dividend date. Distributions from net investment income, if any, are generally declared and paid 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.
25
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business, the funds enter into contracts that provide general indemnifications. The 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.
Subsequent Events — Management has evaluated events or transactions that may have occurred since May 31, 2009, that would merit recognition or disclosure in the financial statements. This evaluation was completed through July 22, 2009, the date the financial statements were available to be issued.
2. Fees and Transactions with Related Parties
Management Fees — The corporation has entered into a Management Agreement with American Century Global Investment Management, Inc. (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 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 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 each fund’s assets as well as certain assets, if any, of other clients of the investment advisor outside the American Century Investments family of funds (such as subadvised funds and separate accounts) that have very similar investment teams and investment strategies (strategy assets). 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 six months ended May 31, 2009 was 1.20% and 1.61%, 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.
Acquired Fund Fees and Expenses — The funds may invest in mutual funds, exchange traded funds, and business development companies (the acquired funds). Each fund will indirectly realize its pro rata share of the fees and expenses of the acquired funds in which it invests. These indirect fees and expenses are not paid out of each fund’s assets but are reflected in the return realized by the fund on its investment in the acquired funds.
Related Parties — Certain officers and directors of the corporation are also officers and/ or directors, 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.
26
The funds are wholly owned, in aggregate, by various funds in a series issued by American Century Asset Allocation Portfolios, Inc. (ACAAP). ACAAP does not invest in the funds for the purpose of exercising management or control.
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). The funds have a Mutual Funds Services Agreement with J.P. Morgan Investor Services Co. (JPMIS). JPMorgan Chase Bank (JPMCB) is a custodian of the funds. The funds have a securities lending agreement with JPMCB. JPMIM, JPMIS and JPMCB are wholly owned subsidiaries of JPMorgan Chase & Co. (JPM). JPM is an equity investor in ACC.
3. Investment Transactions
Investment transactions, excluding short-term investments, for the six months ended May 31, 2009, were as follows:
NT International Growth | NT Emerging Markets | |
Purchases | $104,021,956 | $45,157,414 |
Proceeds from sales | $54,513,934 | $34,581,025 |
4. Fair Value Measurements
The funds’ securities valuation process is based on several considerations and may use multiple inputs to determine the fair value of the positions held by the funds. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels as follows:
• Level 1 valuation inputs consist of actual quoted prices based on an active market;
• Level 2 valuation inputs consist of significant direct or indirect observable market data; or
• Level 3 valuation inputs consist of significant unobservable inputs such as the fund’s own assumptions.
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the valuation inputs used to determine the fair value of the funds’ securities as of May 31, 2009:
Fund/Valuation Inputs | Value of Investment Securities |
NT International Growth | |
Level 1 — Quoted Prices | $ 13,529,755 |
Level 2 — Other Significant Observable Inputs | 106,209,094 |
Level 3 — Significant Unobservable Inputs | — |
$119,738,849 | |
NT Emerging Markets | |
Level 1 — Quoted Prices | $ 6,502,094 |
Level 2 — Other Significant Observable Inputs | 36,198,508 |
Level 3 — Significant Unobservable Inputs | — |
$42,700,602 |
27
5. Bank Line of Credit
The funds, along with certain other funds in the American Century Investments family of funds, had a $500,000,000 unsecured bank line of credit agreement with Bank of America, N.A. The line expired December 10, 2008, and was not renewed. The agreement allowed the funds to borrow money for temporary or emergency purposes to fund shareholder redemptions. Borrowings under the agreement were subject to interest at the Federal Funds rate plus 0.40%. The funds did not borrow from the line during the six months ended May 31, 2009.
6. Interfund Lending
The funds, along with certain other funds in the American Century Investments family of funds, may participate in an interfund lending program, pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC). This program provides an alternative credit facility allowing the funds to borrow from or lend to other funds in the American Century Investments family of funds that permit such transactions. Interfund lending transactions are subject to each fund’s investment policies and borrowing and lending limits. The interfund loan rate earned/paid on interfund lending transactions is determined daily based on the average of certain current market rates. Interfund lending transactions normally extend only overnight, but can have a maximum duration of seven days. The program is subject to annual approval by the Board of Directors. During the six months ended May 31, 2009, the funds did not utilize the program.
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
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 May 31, 2009, the components of investments for federal income tax purposes were as follows:
NT International | NT Emerging | |
Growth | Markets | |
Federal tax cost of investments | $112,120,886 | $33,322,222 |
Gross tax appreciation of investments | $ 9,670,570 | $9,385,422 |
Gross tax depreciation of investments | (2,052,607) | (7,042) |
Net tax appreciation (depreciation) of investments | $ 7,617,963 | $9,378,380 |
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.
28
As of November 30, 2008, the accumulated capital losses listed below 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 in 2016.
The capital and currency loss deferrals listed below for the funds represent net capital and foreign currency losses incurred in the one-month period ended November 30, 2008. The funds have elected to treat such losses as having been incurred in the following fiscal year for federal income tax purposes.
NT International Growth | NT Emerging Markets | |
Accumulated capital losses | $(6,493,005) | $(3,303,739) |
Capital loss deferrals | $(3,194,191) | $(2,463,844) |
Currency loss deferrals | — | $(8,786) |
9. Recently Issued Accounting Standards
In March 2008, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB Statement No. 133” (FAS 161). FAS 161 is effective for interim periods beginning after November 15, 2008 and has been adopted by the funds. FAS 161 amends and expands disclosures about derivative instruments and hedging activities. FAS 161 requires qualitative disclosures about the objectives and strategies of derivative instruments, quantitative disclosures about the fair value amounts of and gains and losses on derivative instruments, and disclosures of credit-risk-related contingent features in hedging activities.
29
Financial Highlights | ||||
NT International Growth | ||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||
2009(1) | 2008 | 2007 | 2006(2) | |
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $6.29 | $12.72 | $10.34 | $10.00 |
Income From Investment Operations | ||||
Net Investment Income (Loss) | 0.09(3) | 0.16(3) | 0.12 | 0.03 |
Net Realized and Unrealized Gain (Loss) | 0.92 | (6.18) | 2.29 | 0.31 |
Total From Investment Operations | 1.01 | (6.02) | 2.41 | 0.34 |
Distributions | ||||
From Net Investment Income | (0.11) | (0.12) | (0.03) | — |
From Net Realized Gains | — | (0.29) | — | — |
Total Distributions | (0.11) | (0.41) | (0.03) | — |
Net Asset Value, End of Period | $7.19 | $6.29 | $12.72 | $10.34 |
Total Return(4) | 16.15% | (48.82)% | 23.40% | 3.40% |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets | 1.21%(5) | 1.12% | 1.07% | 1.07%(5) |
Ratio of Net Investment Income (Loss) to Average Net Assets | 2.81%(5) | 1.62% | 1.15% | 0.59%(5) |
Portfolio Turnover Rate | 61% | 119% | 104% | 65% |
Net Assets, End of Period (in thousands) | $120,178 | $55,860 | $67,703 | $46,380 |
(1) | Six months ended May 31, 2009 (unaudited). |
(2) | May 12, 2006 (fund inception) through November 30, 2006. |
(3) | Computed using average shares outstanding throughout the period. |
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. |
(5) | Annualized. |
See Notes to Financial Statements.
30
NT Emerging Markets | ||||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||
2009(1) | 2008 | 2007 | 2006(2) | |
Per-Share Data | ||||
Net Asset Value, Beginning of Period | $5.12 | $16.19 | $11.01 | $10.00 |
Income From Investment Operations | ||||
Net Investment Income (Loss) | 0.02(3) | 0.11(3) | 0.15 | 0.07 |
Net Realized and Unrealized Gain (Loss) | 1.92 | (8.52) | 5.12 | 0.94 |
Total From Investment Operations | 1.94 | (8.41) | 5.27 | 1.01 |
Distributions | ||||
From Net Investment Income | (0.02) | (0.20) | (0.09) | — |
From Net Realized Gains | — | (2.46) | — | — |
Total Distributions | (0.02) | (2.66) | (0.09) | — |
Net Asset Value, End of Period | $7.04 | $5.12 | $16.19 | $11.01 |
Total Return(4) | 38.15% | (61.75)% | 48.22% | 10.10% |
Ratios/Supplemental Data | ||||
Ratio of Operating Expenses to Average Net Assets | 1.61%(5) | 1.52% | 1.46% | 1.60%(5) |
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.63%(5) | 1.17% | 1.12% | 1.68%(5) |
Portfolio Turnover Rate | 108% | 157% | 113% | 59% |
Net Assets, End of Period (in thousands) | $43,139 | $20,715 | $28,378 | $19,844 |
(1) | Six months ended May 31, 2009 (unaudited). |
(2) | May 12, 2006 (fund inception) through November 30, 2006. |
(3) | Computed using average shares outstanding throughout the period. |
(4) | Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. |
(5) | Annualized. |
See Notes to Financial Statements.
31
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs, or 403(b), 457 and qualified plans are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. You have the right to revoke your withholding election at any time and any election you make may remain in effect until revoked by filing a new election.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld. State taxes will be withheld from your distribution in accordance with the respective state rules.
Proxy Voting Guidelines
American Century 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 Investments’ website at americancentury.com and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the “About Us” page at americancentury.com. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The funds’ Forms N-Q are available on the SEC’s website at sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The funds also make their complete schedule of portfolio holdings for the most recent quarter of their fiscal year available on their website at americancentury.com and, upon request, by calling 1-800-345-2021.
32
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 performance of stocks in global emerging market countries.
The MSCI EM Growth Index represents the performance of growth 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.
33
Notes |
34
![](https://capedge.com/proxy/N-CSRS/0000872825-09-000065/cl-san65837nx40x1.jpg)
Contact Us | |
americancentury.com | |
Automated Information Line | 1-800-345-8765 |
Investor Services Representative | 1-800-345-2021 or |
816-531-5575 | |
Business, Not-For-Profit, Employer-Sponsored | |
Retirement Plans | 1-800-345-3533 |
Banks and Trust Companies, Broker-Dealers, | |
Financial Professionals, Insurance Companies | 1-800-345-6488 |
Telecommunications Device for the Deaf | 1-800-634-4113 |
American Century 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.
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
©2009 American Century Proprietary Holdings, Inc. All rights reserved.
©2009 American Century Proprietary Holdings, Inc. All rights reserved.
0907
CL-SAN-65837N
CL-SAN-65837N
ITEM 2. CODE OF ETHICS.
Not applicable for semiannual report filings.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semiannual report filings.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semiannual report filings.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) | The schedule of investments is included as part of the report to stockholders filed under Item 1 of this Form. |
(b) | Not applicable. |
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
During the reporting period, there were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board.
ITEM 11. CONTROLS AND PROCEDURES.
(a) | The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report. |
(b) | There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
ITEM 12. EXHIBITS.
(a)(1) | Not applicable for semiannual report filings. |
(a)(2) | Separate certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are filed and attached hereto as EX-99.CERT. |
(a)(3) | Not applicable. |
(b) | A certification by the registrant’s chief executive officer and chief financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, is furnished and attached hereto as EX- 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | AMERICAN CENTURY WORLD MUTUAL FUNDS, INC. | |||
By: | /s/ Jonathan S. Thomas | |||
Name: | Jonathan S. Thomas | |||
Title: | President | |||
Date: | July 30, 2009 | |||
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: | July 30, 2009 |
By: | /s/ Robert J. Leach | ||
Name: | Robert J. Leach | ||
Title: | Vice President, Treasurer, and | ||
Chief Financial Officer | |||
(principal financial officer) | |||
Date: | July 30, 2009 |