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: | 05-31-2017 |
ITEM 1. REPORTS TO STOCKHOLDERS.
![acihorizblkb99.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/acihorizblkb99.jpg)
Semiannual Report | |
May 31, 2017 | |
Emerging Markets Fund |
Table of Contents |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2017. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, we encourage you to visit our website, americancentury.com.
“Risk-On” Sentiment Generally Prevailed Among Investors
Optimism surrounding President Trump’s aggressive pro-growth agenda, along with improving global economic data, upbeat corporate earnings reports in the U.S. and Europe, and continued accommodative central bank policies, triggered rallies among higher-risk assets during the six-month period. In addition, moderate candidate Emmanuel Macron’s victory in France’s presidential election helped ease political uncertainty in Europe, which further aided financial market performance. Global equity markets soared, including the S&P 500 Index, the MSCI EAFE Index, and the MSCI Emerging Markets Index, which gained 10.81%, 17.91%, and 17.51%, respectively. Within these indices, growth stocks significantly outperformed their value counterparts, as investors generally favored companies expected to perform well as economic fundamentals improve.
A similar pattern prevailed within the global fixed-income markets, where higher-risk and higher-yielding sectors were top performers. Meanwhile, yields on short-maturity U.S. Treasuries increased as the Federal Reserve (the Fed) raised its interest rate target twice during the reporting period. However, yields on longer-maturity U.S. Treasuries declined, largely due to waning U.S. economic growth and inflation expectations as the reporting period unfolded. Outside the U.S., ongoing central bank stimulus programs helped keep government bond yields low. Overall, returns among broad U.S. and global fixed-income indices were positive.
Late in the reporting period, investor optimism toward President Trump’s policy agenda faded as health care and tax reform remained stalled. Further delays to these and other pro-growth proposals, combined with the Fed’s efforts to normalize U.S. monetary policy, may impede future risk-on sentiment. Meanwhile, as the Fed continues to tighten, central banks in Europe, the U.K., and Japan remain extremely accommodative. In this environment, we continue to believe in a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2017 | |
Top Ten Holdings | % of net assets |
Samsung Electronics Co. Ltd. | 6.5% |
Tencent Holdings Ltd. | 5.5% |
Taiwan Semiconductor Manufacturing Co. Ltd. | 4.7% |
Alibaba Group Holding Ltd. ADR | 3.7% |
Naspers Ltd., N Shares | 2.5% |
HDFC Bank Ltd. | 1.9% |
Industrial & Commercial Bank of China Ltd., H Shares | 1.7% |
Ping An Insurance Group Co. of China Ltd., H Shares | 1.6% |
Medy-Tox, Inc. | 1.5% |
SK Hynix, Inc. | 1.4% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 97.3% |
Temporary Cash Investments | 3.3% |
Other Assets and Liabilities | (0.6)% |
Investments by Country | % of net assets |
China | 28.9% |
South Korea | 13.8% |
Taiwan | 9.7% |
India | 7.0% |
Brazil | 6.5% |
South Africa | 5.5% |
Indonesia | 5.4% |
Russia | 4.5% |
Thailand | 3.9% |
Other Countries | 12.1% |
Cash and Equivalents* | 2.7% |
*Includes temporary cash investments and other assets and liabilities. |
3
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2016 to May 31, 2017 (except as noted).
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
4
Beginning Account Value 12/1/16 | Ending Account Value 5/31/17 | Expenses Paid During Period(1) 12/1/16 - 5/31/17 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class (after waiver) | $1,000 | $1,181.10 | $6.91 | 1.27% |
Investor Class (before waiver) | $1,000 | $1,181.10(2) | $8.48 | 1.56% |
I Class (after waiver) | $1,000 | $1,182.20 | $5.82 | 1.07% |
I Class (before waiver) | $1,000 | $1,182.20(2) | $7.40 | 1.36% |
Y Class (after waiver) | $1,000 | $1,058.20(3) | $1.22(4) | 0.83% |
Y Class (before waiver) | $1,000 | $1,058.20(2)(3) | $1.73(4) | 1.18% |
A Class (after waiver) | $1,000 | $1,179.90 | $8.26 | 1.52% |
A Class (before waiver) | $1,000 | $1,179.90(2) | $9.84 | 1.81% |
C Class (after waiver) | $1,000 | $1,175.60 | $12.31 | 2.27% |
C Class (before waiver) | $1,000 | $1,175.60(2) | $13.89 | 2.56% |
R Class (after waiver) | $1,000 | $1,177.70 | $9.61 | 1.77% |
R Class (before waiver) | $1,000 | $1,177.70(2) | $11.18 | 2.06% |
R5 Class (after waiver) | $1,000 | $1,058.30(3) | $1.44(4) | 0.98% |
R5 Class (before waiver) | $1,000 | $1,058.30(2)(3) | $1.95(4) | 1.33% |
R6 Class (after waiver) | $1,000 | $1,182.40 | $5.01 | 0.92% |
R6 Class (before waiver) | $1,000 | $1,182.40(2) | $6.58 | 1.21% |
Hypothetical | ||||
Investor Class (after waiver) | $1,000 | $1,018.60 | $6.39 | 1.27% |
Investor Class (before waiver) | $1,000 | $1,017.15 | $7.85 | 1.56% |
I Class (after waiver) | $1,000 | $1,019.60 | $5.39 | 1.07% |
I Class (before waiver) | $1,000 | $1,018.15 | $6.84 | 1.36% |
Y Class (after waiver) | $1,000 | $1,020.79(5) | $4.18(5) | 0.83% |
Y Class (before waiver) | $1,000 | $1,019.05(5) | $5.94(5) | 1.18% |
A Class (after waiver) | $1,000 | $1,017.35 | $7.64 | 1.52% |
A Class (before waiver) | $1,000 | $1,015.91 | $9.10 | 1.81% |
C Class (after waiver) | $1,000 | $1,013.61 | $11.40 | 2.27% |
C Class (before waiver) | $1,000 | $1,012.17 | $12.84 | 2.56% |
R Class (after waiver) | $1,000 | $1,016.11 | $8.90 | 1.77% |
R Class (before waiver) | $1,000 | $1,014.66 | $10.35 | 2.06% |
R5 Class (after waiver) | $1,000 | $1,020.04(5) | $4.94(5) | 0.98% |
R5 Class (before waiver) | $1,000 | $1,018.30(5) | $6.69(5) | 1.33% |
R6 Class (after waiver) | $1,000 | $1,020.34 | $4.63 | 0.92% |
R6 Class (before waiver) | $1,000 | $1,018.90 | $6.09 | 1.21% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. |
(2) | Ending account value assumes the return earned after waiver and would have been lower if a portion of the fees had not been waived. |
(3) | Ending account value based on actual return from April 10, 2017 (commencement of sale) through May 31, 2017. |
(4) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 52, the number of days in the period from April 10, 2017 (commencement of sale) through May 31, 2017, divided by 365, to reflect the period. Had the class been available for the full period, the expenses paid during the period would have been higher. |
(5) | Ending account value and expenses paid during the period assumes the class had been available throughout the entire period and are calculated using the class's annualized expense ratio listed in the table above. |
5
Schedule of Investments |
MAY 31, 2017 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 97.3% | |||||
Argentina — 1.0% | |||||
Banco Macro SA ADR | 55,810 | $ | 4,993,321 | ||
YPF SA ADR | 139,853 | 3,448,775 | |||
8,442,096 | |||||
Brazil — 6.5% | |||||
Banco do Brasil SA | 514,100 | 4,496,061 | |||
Gerdau SA Preference Shares | 1,508,900 | 4,448,433 | |||
Itau Unibanco Holding SA ADR | 832,245 | 9,079,793 | |||
Klabin SA | 666,200 | 3,479,281 | |||
Kroton Educacional SA | 1,378,400 | 6,146,669 | |||
Multiplan Empreendimentos Imobiliarios SA | 343,819 | 6,810,611 | |||
Petroleo Brasileiro SA ADR(1) | 688,864 | 5,841,567 | |||
Raia Drogasil SA | 174,300 | 3,877,104 | |||
Vale SA ADR | 1,067,587 | 8,935,703 | |||
53,115,222 | |||||
China — 28.9% | |||||
AAC Technologies Holdings, Inc. | 675,000 | 7,154,911 | |||
Alibaba Group Holding Ltd. ADR(1) | 243,202 | 29,782,517 | |||
Anhui Conch Cement Co. Ltd., H Shares | 2,170,000 | 7,198,478 | |||
Beijing Enterprises Water Group Ltd. | 10,952,000 | 8,769,976 | |||
Brilliance China Automotive Holdings Ltd. | 4,996,000 | 9,321,960 | |||
China Gas Holdings Ltd. | 3,108,000 | 4,738,249 | |||
China Lodging Group Ltd. ADR(1) | 126,194 | 9,641,221 | |||
China Railway Construction Corp. Ltd., H Shares | 6,043,000 | 8,297,682 | |||
Ctrip.com International Ltd. ADR(1) | 152,756 | 8,348,115 | |||
Haier Electronics Group Co. Ltd. | 3,016,000 | 7,671,060 | |||
Industrial & Commercial Bank of China Ltd., H Shares | 21,036,645 | 14,064,834 | |||
Maanshan Iron & Steel Co. Ltd., H Shares(1) | 11,644,000 | 4,109,181 | |||
Momo, Inc. ADR(1) | 93,896 | 3,571,804 | |||
New Oriental Education & Technology Group, Inc. ADR(1) | 119,141 | 8,538,835 | |||
Nine Dragons Paper Holdings Ltd. | 6,511,000 | 7,720,405 | |||
Ping An Insurance Group Co. of China Ltd., H Shares | 1,992,000 | 12,768,657 | |||
Shenzhou International Group Holdings Ltd. | 1,159,000 | 7,934,842 | |||
Sunny Optical Technology Group Co. Ltd. | 1,099,000 | 8,560,651 | |||
TAL Education Group ADR | 100,170 | 11,666,800 | |||
Tencent Holdings Ltd. | 1,302,600 | 44,731,925 | |||
Weibo Corp. ADR(1) | 72,113 | 5,302,469 | |||
Weichai Power Co. Ltd., H Shares | 2,789,000 | 4,523,931 | |||
234,418,503 | |||||
Czech — 0.8% | |||||
Moneta Money Bank AS | 1,980,024 | 6,740,058 | |||
Egypt — 0.9% | |||||
Commercial International Bank Egypt S.A.E. | 587,884 | 2,712,062 | |||
Commercial International Bank Egypt S.A.E. GDR | 972,720 | 4,279,968 | |||
6,992,030 |
6
Shares | Value | ||||
Hungary — 1.9% | |||||
OTP Bank plc | 228,461 | $ | 7,122,807 | ||
Richter Gedeon Nyrt | 339,720 | 8,683,722 | |||
15,806,529 | |||||
India — 7.0% | |||||
Bharat Financial Inclusion Ltd.(1) | 392,485 | 4,475,376 | |||
Godrej Consumer Products Ltd. | 311,458 | 8,744,912 | |||
Havells India Ltd. | 888,031 | 6,708,405 | |||
HDFC Bank Ltd. | 594,713 | 15,141,124 | |||
Larsen & Toubro Ltd. | 221,865 | 6,054,521 | |||
Motherson Sumi Systems Ltd.(1) | 1,411,551 | 9,857,010 | |||
Vakrangee Ltd. | 1,050,596 | 5,941,762 | |||
56,923,110 | |||||
Indonesia — 5.4% | |||||
Astra International Tbk PT | 14,372,000 | 9,441,066 | |||
Bank Rakyat Indonesia Persero Tbk PT | 8,335,600 | 9,058,394 | |||
Indofood Sukses Makmur Tbk PT | 13,329,700 | 8,756,372 | |||
Telekomunikasi Indonesia Persero Tbk PT | 20,310,500 | 6,632,934 | |||
United Tractors Tbk PT | 4,590,600 | 9,572,366 | |||
43,461,132 | |||||
Malaysia — 0.8% | |||||
My EG Services Bhd | 13,205,350 | 6,540,968 | |||
Mexico — 1.6% | |||||
Alsea SAB de CV | 1,625,034 | 5,860,964 | |||
Cemex SAB de CV ADR(1) | 833,454 | 6,892,665 | |||
12,753,629 | |||||
Peru — 0.5% | |||||
Credicorp Ltd. | 22,850 | 3,827,832 | |||
Philippines — 1.2% | |||||
Ayala Land, Inc. | 11,834,600 | 9,367,820 | |||
Poland — 0.5% | |||||
KRUK SA | 49,825 | 4,030,145 | |||
Russia — 4.5% | |||||
Novatek PJSC GDR | 43,551 | 4,895,133 | |||
Sberbank of Russia PJSC ADR | 936,661 | 10,443,770 | |||
TMK PJSC | 2,449,846 | 3,541,306 | |||
X5 Retail Group NV GDR(1) | 255,866 | 9,262,349 | |||
Yandex NV, A Shares(1) | 318,936 | 8,445,425 | |||
36,587,983 | |||||
South Africa — 5.5% | |||||
Capitec Bank Holdings Ltd. | 134,165 | 7,966,833 | |||
Discovery Ltd. | 790,905 | 7,726,325 | |||
Naspers Ltd., N Shares | 97,379 | 20,163,059 | |||
Sappi Ltd. | 1,187,467 | 8,747,326 | |||
44,603,543 | |||||
South Korea — 13.8% | |||||
CJ Korea Express Corp.(1) | 29,806 | 5,124,736 | |||
Cosmax, Inc. | 10,293 | 1,176,763 | |||
GS Retail Co. Ltd. | 144,027 | 7,216,787 | |||
Hana Financial Group, Inc. | 65,122 | 2,387,690 | |||
HS Industries Co. Ltd. | 457,469 | 3,930,736 |
7
Shares | Value | ||||
LG Innotek Co. Ltd. | 31,526 | $ | 3,773,208 | ||
Medy-Tox, Inc. | 26,106 | 12,171,608 | |||
NAVER Corp. | 7,549 | 5,697,486 | |||
Samsung Electronics Co. Ltd. | 26,385 | 52,671,021 | |||
Seegene, Inc.(1) | 163,156 | 5,661,496 | |||
SK Hynix, Inc. | 229,639 | 11,691,160 | |||
111,502,691 | |||||
Taiwan — 9.7% | |||||
Airtac International Group | 483,000 | 5,331,161 | |||
ASPEED Technology, Inc. | 185,000 | 4,655,906 | |||
Hota Industrial Manufacturing Co. Ltd. | 1,122,434 | 5,578,772 | |||
Largan Precision Co. Ltd. | 27,000 | 4,263,772 | |||
Powertech Technology, Inc. | 1,527,000 | 4,690,808 | |||
President Chain Store Corp. | 894,000 | 7,995,146 | |||
Taiwan Paiho Ltd. | 2,456,000 | 8,205,991 | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 5,657,939 | 38,184,834 | |||
78,906,390 | |||||
Thailand — 3.9% | |||||
Airports of Thailand PCL | 3,840,300 | 4,848,294 | |||
CP ALL PCL | 2,935,500 | 5,386,634 | |||
Kasikornbank PCL | 764,400 | 4,196,794 | |||
KCE Electronics PCL | 1,142,400 | 3,622,408 | |||
Minor International PCL | 6,394,700 | 7,040,553 | |||
Srisawad Power 1979 PCL | 4,350,980 | 6,419,165 | |||
31,513,848 | |||||
Turkey — 1.9% | |||||
BIM Birlesik Magazalar AS | 342,697 | 6,095,478 | |||
Tofas Turk Otomobil Fabrikasi AS | 1,084,456 | 9,006,650 | |||
15,102,128 | |||||
United Kingdom — 1.0% | |||||
Tullow Oil plc(1) | 3,366,566 | 7,929,231 | |||
TOTAL COMMON STOCKS (Cost $600,131,841) | 788,564,888 | ||||
TEMPORARY CASH INVESTMENTS — 3.3% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.875% - 2.125%, 9/30/17 - 2/15/26, valued at $14,760,694), in a joint trading account at 0.70%, dated 5/31/17, due 6/1/17 (Delivery value $14,471,679) | 14,471,398 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 0.75%, 2/15/45, valued at $12,311,453), at 0.22%, dated 5/31/17, due 6/1/17 (Delivery value $12,066,074) | 12,066,000 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 344 | 344 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $26,537,742) | 26,537,742 | ||||
TOTAL INVESTMENT SECURITIES — 100.6% (Cost $626,669,583) | 815,102,630 | ||||
OTHER ASSETS AND LIABILITIES — (0.6)% | (4,765,857 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 810,336,773 |
8
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Information Technology | 30.7 | % |
Consumer Discretionary | 18.3 | % |
Financials | 17.6 | % |
Consumer Staples | 7.5 | % |
Materials | 6.3 | % |
Industrials | 4.9 | % |
Energy | 4.3 | % |
Health Care | 3.2 | % |
Real Estate | 2.0 | % |
Utilities | 1.7 | % |
Telecommunication Services | 0.8 | % |
Cash and Equivalents* | 2.7 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
GDR | - | Global Depositary Receipt |
(1) Non-income producing.
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2017 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $626,669,583) | $ | 815,102,630 | |
Foreign currency holdings, at value (cost of $5,308,680) | 5,308,884 | ||
Receivable for capital shares sold | 3,704,667 | ||
Dividends and interest receivable | 1,129,132 | ||
825,245,313 | |||
Liabilities | |||
Payable for investments purchased | 12,991,198 | ||
Payable for capital shares redeemed | 290,165 | ||
Accrued management fees | 745,431 | ||
Distribution and service fees payable | 16,008 | ||
Accrued foreign taxes | 865,738 | ||
14,908,540 | |||
Net Assets | $ | 810,336,773 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 685,515,824 | |
Distributions in excess of net investment income | (834,843 | ) | |
Accumulated net realized loss | (61,936,959 | ) | |
Net unrealized appreciation | 187,592,751 | ||
$ | 810,336,773 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $639,894,616 | 63,421,488 | $10.09 | |||
I Class, $0.01 Par Value | $80,744,004 | 7,806,902 | $10.34 | |||
Y Class, $0.01 Par Value | $5,292 | 511 | $10.36 | |||
A Class, $0.01 Par Value | $31,514,271 | 3,237,211 | $9.74* | |||
C Class, $0.01 Par Value | $9,632,096 | 1,074,041 | $8.97 | |||
R Class, $0.01 Par Value | $2,991,863 | 304,918 | $9.81 | |||
R5 Class, $0.01 Par Value | $5,289 | 511 | $10.35 | |||
R6 Class, $0.01 Par Value | $45,549,342 | 4,399,127 | $10.35 |
*Maximum offering price $10.33 (net asset value divided by 0.9425).
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $536,926) | $ | 4,524,524 | |
Interest | 31,712 | ||
4,556,236 | |||
Expenses: | |||
Management fees | 5,048,883 | ||
Distribution and service fees: | |||
A Class | 45,878 | ||
C Class | 35,875 | ||
R Class | 6,730 | ||
Directors' fees and expenses | 9,206 | ||
Other expenses | 19,034 | ||
5,165,606 | |||
Fees waived(1) | (954,951 | ) | |
4,210,655 | |||
Net investment income (loss) | 345,581 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 6,675,757 | ||
Foreign currency transactions | 10,777 | ||
6,686,534 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $(865,738)) | 104,092,419 | ||
Translation of assets and liabilities in foreign currencies | 52,028 | ||
104,144,447 | |||
Net realized and unrealized gain (loss) | 110,830,981 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 111,176,562 |
(1) | Amount consists of $770,724, $62,218, $3, $52,109, $10,381, $3,854, $3 and $55,659 for the Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class, respectively. |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2016 | ||||||
Increase (Decrease) in Net Assets | May 31, 2017 | November 30, 2016 | ||||
Operations | ||||||
Net investment income (loss) | $ | 345,581 | $ | 1,592,402 | ||
Net realized gain (loss) | 6,686,534 | (7,224,748 | ) | |||
Change in net unrealized appreciation (depreciation) | 104,144,447 | 37,695,499 | ||||
Net increase (decrease) in net assets resulting from operations | 111,176,562 | 32,063,153 | ||||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (1,705,705 | ) | (550,390 | ) | ||
I Class | (210,725 | ) | (88,977 | ) | ||
A Class | (23,887 | ) | — | |||
R6 Class | (256,448 | ) | (128,912 | ) | ||
Decrease in net assets from distributions | (2,196,765 | ) | (768,279 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 113,996,308 | 96,278,777 | ||||
Redemption Fees | ||||||
Increase in net assets from redemption fees | 57,773 | 66,323 | ||||
Net increase (decrease) in net assets | 223,033,878 | 127,639,974 | ||||
Net Assets | ||||||
Beginning of period | 587,302,895 | 459,662,921 | ||||
End of period | $ | 810,336,773 | $ | 587,302,895 | ||
Undistributed (distributions in excess of) net investment income | $ | (834,843 | ) | $ | 1,016,341 |
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2017 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Emerging Markets Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital growth.
The fund offers the Investor Class, I Class (formerly Institutional Class), Y Class, A Class, C Class, R Class, R5 Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge. Sale of the Y Class and R5 Class commenced on April 10, 2017.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of
13
Directors, or its delegate, deems appropriate. If significant fluctuations in foreign markets are identified, the fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund 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.
14
Redemption Fees — The fund 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 fund and helps cover transaction costs that long-term investors may bear when the 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 fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. and American Century Strategic Asset Allocations, Inc. own, in aggregate, 18% of the shares of the fund.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account the 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 use very similar investment teams and strategies (strategy assets). The strategy assets of the fund also include the assets of NT Emerging Markets Fund, one fund in a series issued by the corporation. From December 1, 2016 through March 31, 2017, the investment advisor agreed to waive 0.250% of the fund's management fee. Effective April 1, 2017, the investment advisor agreed to increase the amount of the waiver from 0.250% to 0.350% of the fund's management fee. The investment advisor expects this waiver to continue until April 9, 2018 and cannot terminate it prior to such date without the approval of the Board of Directors.
The management fee schedule range and the effective annual management fee before and after waiver for each class for the period ended May 31, 2017 are as follows:
Effective Annual Management Fee | |||
Management Fee Schedule Range | Before Waiver | After Waiver | |
Investor Class | 1.250% to 1.850% | 1.55% | 1.26% |
I Class | 1.050% to 1.650% | 1.35% | 1.06% |
Y Class | 0.900% to 1.500% | 1.17% | 0.82% |
A Class | 1.250% to 1.850% | 1.55% | 1.26% |
C Class | 1.250% to 1.850% | 1.55% | 1.26% |
R Class | 1.250% to 1.850% | 1.55% | 1.26% |
R5 Class | 1.050% to 1.650% | 1.32% | 0.97% |
R6 Class | 0.900% to 1.500% | 1.20% | 0.91% |
15
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2017 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Acquired Fund Fees and Expenses — The fund may invest in mutual funds, exchange-traded funds, and business development companies (the acquired funds). The 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.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases were $5,210 and there were no interfund sales.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2017 were $255,069,195 and $146,932,719, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2017(1) | Year ended November 30, 2016 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 470,000,000 | 380,000,000 | ||||||||
Sold | 19,262,676 | $ | 181,929,308 | 18,596,256 | $ | 153,561,388 | ||||
Issued in reinvestment of distributions | 170,927 | 1,625,512 | 70,047 | 535,859 | ||||||
Redeemed | (10,885,190 | ) | (102,208,598 | ) | (13,125,822 | ) | (108,549,360 | ) | ||
8,548,413 | 81,346,222 | 5,540,481 | 45,547,887 | |||||||
I Class/Shares Authorized | 60,000,000 | 35,000,000 | ||||||||
Sold | 4,226,431 | 42,850,810 | 4,559,594 | 37,876,044 | ||||||
Issued in reinvestment of distributions | 21,610 | 210,697 | 11,337 | 88,884 | ||||||
Redeemed | (652,928 | ) | (6,165,974 | ) | (936,195 | ) | (8,059,380 | ) | ||
3,595,113 | 36,895,533 | 3,634,736 | 29,905,548 | |||||||
Y Class/Shares Authorized | 50,000,000 | N/A | ||||||||
Sold | 511 | 5,000 | ||||||||
A Class/Shares Authorized | 50,000,000 | 30,000,000 | ||||||||
Sold | 2,246,981 | 20,403,892 | 3,099,527 | 24,741,141 | ||||||
Issued in reinvestment of distributions | 2,219 | 20,368 | — | — | ||||||
Redeemed | (3,582,315 | ) | (32,676,251 | ) | (1,808,554 | ) | (14,483,730 | ) | ||
(1,333,115 | ) | (12,251,991 | ) | 1,290,973 | 10,257,411 | |||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 452,259 | 3,792,691 | 446,258 | 3,315,528 | ||||||
Redeemed | (143,417 | ) | (1,166,881 | ) | (113,764 | ) | (851,314 | ) | ||
308,842 | 2,625,810 | 332,494 | 2,464,214 | |||||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 82,511 | 736,098 | 158,468 | 1,280,298 | ||||||
Redeemed | (58,540 | ) | (532,547 | ) | (57,800 | ) | (468,776 | ) | ||
23,971 | 203,551 | 100,668 | 811,522 | |||||||
R5 Class/Shares Authorized | 50,000,000 | N/A | ||||||||
Sold | 511 | 5,000 | ||||||||
R6 Class/Shares Authorized | 50,000,000 | 40,000,000 | ||||||||
Sold | 1,199,864 | 11,457,806 | 1,486,340 | 12,613,520 | ||||||
Issued in reinvestment of distributions | 26,302 | 256,448 | 16,443 | 128,912 | ||||||
Redeemed | (694,054 | ) | (6,547,071 | ) | (633,883 | ) | (5,450,237 | ) | ||
532,112 | 5,167,183 | 868,900 | 7,292,195 | |||||||
Net increase (decrease) | 11,676,358 | $ | 113,996,308 | 11,768,252 | $ | 96,278,777 |
(1) | April 10, 2017 (commencement of sale) through May 31, 2017 for the Y Class and R5 Class. |
17
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | ||||||||
Argentina | $ | 8,442,096 | — | — | ||||
Brazil | 23,857,063 | $ | 29,258,159 | — | ||||
China | 76,851,761 | 157,566,742 | — | |||||
Mexico | 6,892,665 | 5,860,964 | — | |||||
Peru | 3,827,832 | — | — | |||||
Russia | 8,445,425 | 28,142,558 | — | |||||
Other Countries | — | 439,419,623 | — | |||||
Temporary Cash Investments | 344 | 26,537,398 | — | |||||
$ | 128,317,186 | $ | 686,785,444 | — |
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.
18
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 626,992,331 | |
Gross tax appreciation of investments | $ | 195,753,165 | |
Gross tax depreciation of investments | (7,642,866 | ) | |
Net tax appreciation (depreciation) of investments | $ | 188,110,299 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2016, the fund had accumulated short-term capital losses of $(66,561,862) and accumulated long-term capital losses of $(1,738,883), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. Any unlimited losses will be required to be utilized prior to the losses which carry an expiration date. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations. Capital loss carryovers of $(57,815,598) expire in 2017 and the remaining losses are unlimited.
9. Recently Issued Accounting Guidance
In October 2016, the Securities and Exchange Commission adopted new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other provisions. Compliance with the amendments is effective on August 1, 2017. Management is currently evaluating the impact that adopting the amendments will have on the financial statement disclosures.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||||
2017(3) | $8.57 | —(4) | 1.55 | 1.55 | (0.03) | $10.09 | 18.11% | 1.27%(5) | 1.56%(5) | 0.10%(5) | (0.19)%(5) | 22% | $639,895 | ||
2016 | $8.10 | 0.02 | 0.46 | 0.48 | (0.01) | $8.57 | 5.95% | 1.38% | 1.63% | 0.30% | 0.05% | 59% | $470,280 | ||
2015 | $9.00 | 0.03 | (0.92) | (0.89) | (0.01) | $8.10 | (9.93)% | 1.43% | 1.68% | 0.30% | 0.05% | 58% | $399,694 | ||
2014 | $8.87 | 0.03 | 0.13 | 0.16 | (0.03) | $9.00 | 1.84% | 1.45% | 1.70% | 0.29% | 0.04% | 74% | $393,357 | ||
2013 | $8.36 | 0.01 | 0.53 | 0.54 | (0.03) | $8.87 | 6.48% | 1.63% | 1.72% | 0.17% | 0.08% | 68% | $421,274 | ||
2012 | $7.38 | 0.02 | 0.96 | 0.98 | — | $8.36 | 13.28% | 1.74% | 1.74% | 0.29% | 0.29% | 85% | $452,331 | ||
I Class(6) | |||||||||||||||
2017(3) | $8.79 | 0.01 | 1.59 | 1.60 | (0.05) | $10.34 | 18.22% | 1.07%(5) | 1.36%(5) | 0.30%(5) | 0.01%(5) | 22% | $80,744 | ||
2016 | $8.31 | 0.04 | 0.47 | 0.51 | (0.03) | $8.79 | 6.13% | 1.18% | 1.43% | 0.50% | 0.25% | 59% | $37,036 | ||
2015 | $9.24 | 0.02 | (0.93) | (0.91) | (0.02) | $8.31 | (9.83)% | 1.23% | 1.48% | 0.50% | 0.25% | 58% | $4,797 | ||
2014 | $9.09 | 0.05 | 0.14 | 0.19 | (0.04) | $9.24 | 2.07% | 1.25% | 1.50% | 0.49% | 0.24% | 74% | $16,300 | ||
2013 | $8.56 | 0.03 | 0.55 | 0.58 | (0.05) | $9.09 | 6.77% | 1.43% | 1.52% | 0.37% | 0.28% | 68% | $32,452 | ||
2012 | $7.56 | 0.04 | 0.97 | 1.01 | (0.01) | $8.56 | 13.43% | 1.54% | 1.54% | 0.49% | 0.49% | 85% | $28,536 | ||
Y Class | |||||||||||||||
2017(7) | $9.79 | 0.02 | 0.55 | 0.57 | — | $10.36 | 5.82% | 0.83%(5) | 1.18%(5) | 1.57%(5) | 1.22%(5) | 22%(8) | $5 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
A Class | |||||||||||||||
2017(3) | $8.26 | (0.01) | 1.50 | 1.49 | (0.01) | $9.74 | 17.99% | 1.52%(5) | 1.81%(5) | (0.15)%(5) | (0.44)%(5) | 22% | $31,514 | ||
2016 | $7.82 | 0.01 | 0.43 | 0.44 | — | $8.26 | 5.63% | 1.63% | 1.88% | 0.05% | (0.20)% | 59% | $37,743 | ||
2015 | $8.70 | 0.01 | (0.89) | (0.88) | — | $7.82 | (10.11)% | 1.68% | 1.93% | 0.05% | (0.20)% | 58% | $25,632 | ||
2014 | $8.59 | 0.01 | 0.12 | 0.13 | (0.02) | $8.70 | 1.59% | 1.70% | 1.95% | 0.04% | (0.21)% | 74% | $9,278 | ||
2013 | $8.09 | (0.01) | 0.52 | 0.51 | (0.01) | $8.59 | 6.30% | 1.88% | 1.97% | (0.08)% | (0.17)% | 68% | $11,575 | ||
2012 | $7.16 | —(4) | 0.93 | 0.93 | — | $8.09 | 12.99% | 1.99% | 1.99% | 0.04% | 0.04% | 85% | $13,745 | ||
C Class | |||||||||||||||
2017(3) | $7.63 | (0.04) | 1.38 | 1.34 | — | $8.97 | 17.56% | 2.27%(5) | 2.56%(5) | (0.90)%(5) | (1.19)%(5) | 22% | $9,632 | ||
2016 | $7.28 | (0.05) | 0.40 | 0.35 | — | $7.63 | 4.81% | 2.38% | 2.63% | (0.70)% | (0.95)% | 59% | $5,840 | ||
2015 | $8.15 | (0.05) | (0.82) | (0.87) | — | $7.28 | (10.67)% | 2.43% | 2.68% | (0.70)% | (0.95)% | 58% | $3,149 | ||
2014 | $8.09 | (0.06) | 0.13 | 0.07 | (0.01) | $8.15 | 0.82% | 2.45% | 2.70% | (0.71)% | (0.96)% | 74% | $3,129 | ||
2013 | $7.67 | (0.06) | 0.48 | 0.42 | — | $8.09 | 5.48% | 2.63% | 2.72% | (0.83)% | (0.92)% | 68% | $3,571 | ||
2012 | $6.84 | (0.05) | 0.88 | 0.83 | — | $7.67 | 12.13% | 2.74% | 2.74% | (0.71)% | (0.71)% | 85% | $3,376 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
R Class | |||||||||||||||
2017(3) | $8.33 | (0.02) | 1.50 | 1.48 | — | $9.81 | 17.77% | 1.77%(5) | 2.06%(5) | (0.40)%(5) | (0.69)%(5) | 22% | $2,992 | ||
2016 | $7.90 | (0.02) | 0.45 | 0.43 | — | $8.33 | 5.44% | 1.88% | 2.13% | (0.20)% | (0.45)% | 59% | $2,340 | ||
2015 | $8.82 | (0.02) | (0.90) | (0.92) | — | $7.90 | (10.43)% | 1.93% | 2.18% | (0.20)% | (0.45)% | 58% | $1,425 | ||
2014 | $8.72 | (0.02) | 0.14 | 0.12 | (0.02) | $8.82 | 1.38% | 1.95% | 2.20% | (0.21)% | (0.46)% | 74% | $1,712 | ||
2013 | $8.23 | (0.02) | 0.51 | 0.49 | — | $8.72 | 5.95% | 2.13% | 2.22% | (0.33)% | (0.42)% | 68% | $1,133 | ||
2012 | $7.30 | (0.02) | 0.95 | 0.93 | — | $8.23 | 12.74% | 2.24% | 2.24% | (0.21)% | (0.21)% | 85% | $824 | ||
R5 Class | |||||||||||||||
2017(7) | $9.78 | 0.02 | 0.55 | 0.57 | — | $10.35 | 5.83% | 0.98%(5) | 1.33%(5) | 1.42%(5) | 1.07%(5) | 22%(8) | $5 | ||
R6 Class | |||||||||||||||
2017(3) | $8.81 | 0.02 | 1.58 | 1.60 | (0.06) | $10.35 | 18.24% | 0.92%(5) | 1.21%(5) | 0.45%(5) | 0.16%(5) | 22% | $45,549 | ||
2016 | $8.33 | 0.06 | 0.46 | 0.52 | (0.04) | $8.81 | 6.27% | 1.03% | 1.28% | 0.65% | 0.40% | 59% | $34,065 | ||
2015 | $9.25 | 0.07 | (0.95) | (0.88) | (0.04) | $8.33 | (9.58)% | 1.08% | 1.33% | 0.65% | 0.40% | 58% | $24,965 | ||
2014 | $9.09 | —(4) | 0.20 | 0.20 | (0.04) | $9.25 | 2.23% | 1.10% | 1.35% | 0.64% | 0.39% | 74% | $15,174 | ||
2013(9) | $8.46 | —(4) | 0.63 | 0.63 | — | $9.09 | 7.45% | 1.12%(5) | 1.37%(5) | 0.14%(5) | (0.11)%(5) | 68%(10) | $27 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2017 (unaudited). |
(4) | Per-share amount was less than $0.005. |
(5) | Annualized. |
(6) | Prior to April 10, 2017, the I Class was referred to as the Institutional Class. |
(7) | April 10, 2017 (commencement of sale) through May 31, 2017 (unaudited). |
(8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the six months ended May 31, 2017. |
(9) | July 26, 2013 (commencement of sale) through November 30, 2013. |
(10) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2013. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
Distributions you receive from 403(b), 457 and qualified plans are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on the "About Us" page of 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 fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s 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 fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
24
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2017 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92633 1707 |
![acihorizblkb99.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/acihorizblkb99.jpg)
Semiannual Report | |
May 31, 2017 | |
Emerging Markets Small Cap Fund |
Table of Contents |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2017. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, we encourage you to visit our website, americancentury.com.
“Risk-On” Sentiment Generally Prevailed Among Investors
Optimism surrounding President Trump’s aggressive pro-growth agenda, along with improving global economic data, upbeat corporate earnings reports in the U.S. and Europe, and continued accommodative central bank policies, triggered rallies among higher-risk assets during the six-month period. In addition, moderate candidate Emmanuel Macron’s victory in France’s presidential election helped ease political uncertainty in Europe, which further aided financial market performance. Global equity markets soared, including the S&P 500 Index, the MSCI EAFE Index, and the MSCI Emerging Markets Index, which gained 10.81%, 17.91%, and 17.51%, respectively. Within these indices, growth stocks significantly outperformed their value counterparts, as investors generally favored companies expected to perform well as economic fundamentals improve.
A similar pattern prevailed within the global fixed-income markets, where higher-risk and higher-yielding sectors were top performers. Meanwhile, yields on short-maturity U.S. Treasuries increased as the Federal Reserve (the Fed) raised its interest rate target twice during the reporting period. However, yields on longer-maturity U.S. Treasuries declined, largely due to waning U.S. economic growth and inflation expectations as the reporting period unfolded. Outside the U.S., ongoing central bank stimulus programs helped keep government bond yields low. Overall, returns among broad U.S. and global fixed-income indices were positive.
Late in the reporting period, investor optimism toward President Trump’s policy agenda faded as health care and tax reform remained stalled. Further delays to these and other pro-growth proposals, combined with the Fed’s efforts to normalize U.S. monetary policy, may impede future risk-on sentiment. Meanwhile, as the Fed continues to tighten, central banks in Europe, the U.K., and Japan remain extremely accommodative. In this environment, we continue to believe in a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2017 | |
Top Ten Holdings | % of net assets |
iShares MSCI India Small-Cap ETF | 4.6% |
Sunny Optical Technology Group Co. Ltd. | 2.1% |
Duk San Neolux Co. Ltd. | 2.0% |
TAL Education Group ADR | 2.0% |
Medy-Tox, Inc. | 1.9% |
China Lodging Group Ltd. ADR | 1.7% |
ASPEED Technology, Inc. | 1.6% |
Vakrangee Ltd. | 1.6% |
Gourmet Master Co. Ltd. | 1.5% |
My EG Services Bhd | 1.5% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 86.3% |
Exchange-Traded Funds | 4.6% |
Total Equity Exposure | 90.9% |
Temporary Cash Investments | 9.1% |
Other Assets and Liabilities | —* |
*Category is less than 0.05% of total net assets. | |
Investments by Country | % of net assets |
China | 19.3% |
Taiwan | 13.0% |
South Korea | 12.3% |
Brazil | 6.8% |
South Africa | 5.6% |
Thailand | 4.6% |
Russia | 3.6% |
India | 3.3% |
Mexico | 3.1% |
Indonesia | 2.5% |
Malaysia | 2.1% |
Other Countries | 10.1% |
Exchange-Traded Funds(1) | 4.6% |
Cash and Equivalents(2) | 9.1% |
(1) Category may increase exposure to the countries indicated. The Schedule of Investments provides additional information on the fund's portfolio holdings. | |
(2) Includes temporary cash investments and other assets and liabilities. |
3
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2016 to May 31, 2017.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
4
Beginning Account Value 12/1/16 | Ending Account Value 5/31/17 | Expenses Paid During Period(1) 12/1/16 - 5/31/17 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,134.10 | $8.51 | 1.60% |
I Class | $1,000 | $1,135.30 | $7.45 | 1.40% |
A Class | $1,000 | $1,133.40 | $9.84 | 1.85% |
C Class | $1,000 | $1,129.10 | $13.80 | 2.60% |
R Class | $1,000 | $1,131.80 | $11.16 | 2.10% |
R6 Class | $1,000 | $1,136.90 | $6.66 | 1.25% |
Hypothetical | ||||
Investor Class | $1,000 | $1,016.95 | $8.05 | 1.60% |
I Class | $1,000 | $1,017.95 | $7.04 | 1.40% |
A Class | $1,000 | $1,015.71 | $9.30 | 1.85% |
C Class | $1,000 | $1,011.97 | $13.04 | 2.60% |
R Class | $1,000 | $1,014.46 | $10.55 | 2.10% |
R6 Class | $1,000 | $1,018.70 | $6.29 | 1.25% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. |
5
Schedule of Investments |
MAY 31, 2017 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 86.3% | |||||
Argentina — 1.1% | |||||
Banco Macro SA ADR | 991 | $ | 88,665 | ||
Brazil — 6.8% | |||||
Arezzo Industria e Comercio SA | 7,000 | 68,573 | |||
Azul SA ADR(1) | 3,075 | 67,835 | |||
Banco ABC Brasil SA Preference Shares | 17,400 | 92,163 | |||
Bradespar SA Preference Shares | 11,500 | 68,234 | |||
Linx SA | 10,400 | 59,521 | |||
Metalurgica Gerdau SA Preference Shares(1) | 56,000 | 76,664 | |||
Multiplan Empreendimentos Imobiliarios SA | 3,153 | 62,457 | |||
Raia Drogasil SA | 1,900 | 42,263 | |||
537,710 | |||||
China — 19.3% | |||||
AviChina Industry & Technology Co. Ltd., H Shares | 56,000 | 34,423 | |||
Baozun, Inc. ADR(1) | 3,009 | 61,835 | |||
Beijing Enterprises Water Group Ltd. | 100,000 | 80,076 | |||
Brilliance China Automotive Holdings Ltd. | 32,000 | 59,708 | |||
China Agri-Industries Holdings Ltd.(1) | 206,000 | 88,559 | |||
China Lodging Group Ltd. ADR(1) | 1,796 | 137,214 | |||
China Resources Cement Holdings Ltd. | 124,000 | 61,423 | |||
China Suntien Green Energy Corp. Ltd., H Shares | 342,000 | 65,832 | |||
Golden Eagle Retail Group Ltd. | 54,000 | 77,613 | |||
Huaneng Renewables Corp. Ltd., H Shares | 166,000 | 54,960 | |||
IMAX China Holding, Inc.(1) | 9,500 | 41,389 | |||
Lonking Holdings Ltd. | 252,000 | 69,851 | |||
Maanshan Iron & Steel Co. Ltd., H Shares(1) | 170,000 | 59,993 | |||
Minth Group Ltd. | 10,000 | 40,680 | |||
Nine Dragons Paper Holdings Ltd. | 43,000 | 50,987 | |||
SINA Corp.(1) | 991 | 97,088 | |||
Sinotruk Hong Kong Ltd. | 44,500 | 27,411 | |||
Sunny Optical Technology Group Co. Ltd. | 21,000 | 163,579 | |||
TAL Education Group ADR | 1,365 | 158,982 | |||
Weibo Corp. ADR(1) | 1,356 | 99,707 | |||
1,531,310 | |||||
Colombia — 0.7% | |||||
Cementos Argos SA | 12,956 | 52,777 | |||
Czech — 1.1% | |||||
Moneta Money Bank AS | 25,330 | 86,224 | |||
Greece — 1.4% | |||||
JUMBO SA | 6,136 | 111,044 | |||
Hungary — 1.0% | |||||
Richter Gedeon Nyrt | 2,996 | 76,582 | |||
India — 3.3% | |||||
Bharat Financial Inclusion Ltd.(1) | 5,877 | 67,013 | |||
Havells India Ltd. | 9,039 | 68,283 |
6
Shares | Value | ||||
Vakrangee Ltd. | 22,005 | $ | 124,452 | ||
259,748 | |||||
Indonesia — 2.5% | |||||
AKR Corporindo Tbk PT | 141,400 | 70,328 | |||
Indofood Sukses Makmur Tbk PT | 139,800 | 91,836 | |||
Mitra Keluarga Karyasehat Tbk PT | 231,100 | 35,394 | |||
197,558 | |||||
Malaysia — 2.1% | |||||
Carlsberg Brewery Malaysia Bhd | 15,600 | 53,871 | |||
My EG Services Bhd | 233,400 | 115,609 | |||
169,480 | |||||
Mexico — 3.1% | |||||
Alsea SAB de CV | 20,664 | 74,528 | |||
Banregio Grupo Financiero SAB de CV | 16,363 | 91,775 | |||
Grupo Aeroportuario del Pacifico SAB de CV, B Shares | 7,799 | 78,350 | |||
244,653 | |||||
Philippines — 1.6% | |||||
DoubleDragon Properties Corp.(1) | 60,940 | 59,379 | |||
Puregold Price Club, Inc. | 77,000 | 66,906 | |||
126,285 | |||||
Poland — 1.2% | |||||
KRUK SA | 1,165 | 94,232 | |||
Russia — 3.6% | |||||
Moscow Exchange MICEX-RTS PJSC | 18,441 | 32,847 | |||
TMK PJSC | 49,234 | 71,169 | |||
X5 Retail Group NV GDR(1) | 2,880 | 104,256 | |||
Yandex NV, A Shares(1) | 2,813 | 74,488 | |||
282,760 | |||||
South Africa — 5.6% | |||||
Capitec Bank Holdings Ltd. | 1,711 | 101,601 | |||
Dis-Chem Pharmacies Ltd. | 42,293 | 92,970 | |||
Discovery Ltd. | 6,941 | 67,806 | |||
Petra Diamonds Ltd.(1) | 49,350 | 82,470 | |||
Sappi Ltd. | 14,009 | 103,196 | |||
448,043 | |||||
South Korea — 12.3% | |||||
CJ Korea Express Corp.(1) | 231 | 39,717 | |||
Cosmax, Inc. | 767 | 87,689 | |||
Duk San Neolux Co. Ltd.(1) | 3,845 | 159,006 | |||
GS Retail Co. Ltd. | 2,045 | 102,469 | |||
HS Industries Co. Ltd. | 9,582 | 82,332 | |||
Kumho Petrochemical Co. Ltd. | 1,013 | 70,755 | |||
LG Innotek Co. Ltd. | 597 | 71,452 | |||
Medy-Tox, Inc. | 325 | 151,527 | |||
Seegene, Inc.(1) | 2,987 | 103,649 | |||
SK Materials Co. Ltd. | 591 | 103,673 | |||
972,269 | |||||
Taiwan — 13.0% | |||||
Airtac International Group | 8,000 | 88,301 | |||
ASPEED Technology, Inc. | 5,000 | 125,835 | |||
AU Optronics Corp. | 175,000 | 68,362 |
7
Shares | Value | ||||
Chroma ATE, Inc. | 31,000 | $ | 97,187 | ||
Egis Technology, Inc.(1) | 7,000 | 44,217 | |||
Global PMX Co. Ltd. | 15,000 | 71,312 | |||
Gourmet Master Co. Ltd. | 11,000 | 120,682 | |||
Hota Industrial Manufacturing Co. Ltd. | 13,829 | 68,734 | |||
Nien Made Enterprise Co. Ltd. | 4,000 | 41,557 | |||
Powertech Technology, Inc. | 22,000 | 67,582 | |||
Taiwan Paiho Ltd. | 27,000 | 90,213 | |||
TCI Co. Ltd. | 15,000 | 84,278 | |||
Vanguard International Semiconductor Corp. | 32,000 | 60,321 | |||
1,028,581 | |||||
Thailand — 4.6% | |||||
CH Karnchang PCL | 44,900 | 35,923 | |||
Digital Telecommunications Infrastructure Fund | 139,300 | 58,076 | |||
KCE Electronics PCL | 11,500 | 36,465 | |||
Minor International PCL | 81,000 | 89,181 | |||
Sino-Thai Engineering & Construction PCL | 89,600 | 67,739 | |||
Srisawad Power 1979 PCL | 54,012 | 79,686 | |||
367,070 | |||||
Turkey — 1.0% | |||||
Tofas Turk Otomobil Fabrikasi AS | 9,239 | 76,732 | |||
United Kingdom — 1.0% | |||||
Tullow Oil plc(1) | 33,352 | 78,554 | |||
TOTAL COMMON STOCKS (Cost $5,698,903) | 6,830,277 | ||||
EXCHANGE-TRADED FUNDS — 4.6% | |||||
iShares MSCI India Small-Cap ETF (Cost $244,801) | 8,248 | 359,530 | |||
TEMPORARY CASH INVESTMENTS — 9.1% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.875% - 2.125%, 9/30/17 - 2/15/26, valued at $402,096), in a joint trading account at 0.70%, dated 5/31/17, due 6/1/17 (Delivery value $394,223) | 394,215 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.875%, 8/15/45, valued at $336,668), at 0.22%, dated 5/31/17, due 6/1/17 (Delivery value $328,002) | 328,000 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 834 | 834 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $723,049) | 723,049 | ||||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $6,666,753) | 7,912,856 | ||||
OTHER ASSETS AND LIABILITIES† | 34 | ||||
TOTAL NET ASSETS — 100.0% | $ | 7,912,890 |
8
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Consumer Discretionary | 17.8 | % |
Information Technology | 17.4 | % |
Materials | 11.3 | % |
Consumer Staples | 10.3 | % |
Financials | 10.1 | % |
Industrials | 8.1 | % |
Health Care | 4.6 | % |
Energy | 2.7 | % |
Utilities | 1.7 | % |
Real Estate | 1.6 | % |
Telecommunication Services | 0.7 | % |
Exchange-Traded Funds | 4.6 | % |
Cash and Equivalents* | 9.1 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
GDR | - | Global Depositary Receipt |
† | Category is less than 0.05% of total net assets. |
(1) | Non-income producing. |
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2017 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $6,666,753) | $ | 7,912,856 | |
Foreign currency holdings, at value (cost of $3,949) | 3,965 | ||
Receivable for capital shares sold | 37 | ||
Dividends and interest receivable | 14,565 | ||
7,931,423 | |||
Liabilities | |||
Accrued management fees | 10,337 | ||
Distribution and service fees payable | 1,445 | ||
Accrued foreign taxes | 6,751 | ||
18,533 | |||
Net Assets | $ | 7,912,890 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 6,892,760 | |
Accumulated net investment loss | (45,539 | ) | |
Accumulated net realized loss | (174,289 | ) | |
Net unrealized appreciation | 1,239,958 | ||
$ | 7,912,890 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $3,895,554 | 331,509 | $11.75 | |||
I Class, $0.01 Par Value | $712,782 | 60,639 | $11.75 | |||
A Class, $0.01 Par Value | $1,637,397 | 139,389 | $11.75* | |||
C Class, $0.01 Par Value | $1,171,745 | 100,000 | $11.72 | |||
R Class, $0.01 Par Value | $257,410 | 21,920 | $11.74 | |||
R6 Class, $0.01 Par Value | $238,002 | 20,244 | $11.76 |
*Maximum offering price $12.47 (net asset value divided by 0.9425).
See Notes to Financial Statements.
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Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $4,853) | $ | 48,440 | |
Interest | 414 | ||
48,854 | |||
Expenses: | |||
Management fees | 52,311 | ||
Distribution and service fees: | |||
A Class | 1,882 | ||
C Class | 5,460 | ||
R Class | 576 | ||
Directors' fees and expenses | 91 | ||
Other expenses | 52 | ||
60,372 | |||
Net investment income (loss) | (11,518 | ) | |
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 14,807 | ||
Foreign currency transactions | (873 | ) | |
13,934 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $(6,751)) | 837,241 | ||
Translation of assets and liabilities in foreign currencies | 1,042 | ||
838,283 | |||
Net realized and unrealized gain (loss) | 852,217 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 840,699 |
See Notes to Financial Statements.
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Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) AND PERIOD ENDED NOVEMBER 30, 2016 | ||||||
Increase (Decrease) in Net Assets | May 31, 2017 | November 30, 2016(1) | ||||
Operations | ||||||
Net investment income (loss) | $ | (11,518 | ) | $ | 12,647 | |
Net realized gain (loss) | 13,934 | (199,836 | ) | |||
Change in net unrealized appreciation (depreciation) | 838,283 | 401,675 | ||||
Net increase (decrease) in net assets resulting from operations | 840,699 | 214,486 | ||||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (20,088 | ) | — | |||
I Class | (6,486 | ) | — | |||
A Class | (8,573 | ) | — | |||
R Class | (737 | ) | — | |||
R6 Class | (2,472 | ) | — | |||
Decrease in net assets from distributions | (38,356 | ) | — | |||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 1,606,858 | 5,289,203 | ||||
Net increase (decrease) in net assets | 2,409,201 | 5,503,689 | ||||
Net Assets | ||||||
Beginning of period | 5,503,689 | — | ||||
End of period | $ | 7,912,890 | $ | 5,503,689 | ||
Accumulated undistributed net investment income (loss) | $ | (45,539 | ) | $ | 4,335 |
(1) | April 7, 2016 (fund inception) through November 30, 2016. |
See Notes to Financial Statements.
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Notes to Financial Statements |
MAY 31, 2017 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Emerging Markets Small Cap Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital growth.
The fund offers the Investor Class, I Class (formerly Institutional Class), A Class, C Class, R Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge. All classes of the fund commenced sale on April 7, 2016, the fund’s inception date.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. If significant fluctuations in foreign markets are identified, the
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fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in
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the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. ACIM owns 75% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class.
The annual management fee for each class is as follows:
Investor Class | I Class | A Class | C Class | R Class | R6 Class |
1.60% | 1.40% | 1.60% | 1.60% | 1.60% | 1.25% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2017 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Acquired Fund Fees and Expenses — The fund may invest in mutual funds, exchange-traded funds, and business development companies (the acquired funds). The 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.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended
May 31, 2017 were $2,847,575 and $1,832,069, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2017 | Period ended November 30, 2016(1) | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 121,724 | $ | 1,365,799 | 236,567 | $ | 2,387,142 | ||||
Issued in reinvestment of distributions | 1,979 | 20,088 | — | — | ||||||
Redeemed | (19,332 | ) | (219,693 | ) | (9,429 | ) | (101,758 | ) | ||
104,371 | 1,166,194 | 227,138 | 2,285,384 | |||||||
I Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | — | — | 60,000 | 600,000 | ||||||
Issued in reinvestment of distributions | 639 | 6,486 | — | — | ||||||
639 | 6,486 | 60,000 | 600,000 | |||||||
A Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 38,517 | 405,618 | 100,028 | 1,000,309 | ||||||
Issued in reinvestment of distributions | 844 | 8,573 | — | — | ||||||
39,361 | 414,191 | 100,028 | 1,000,309 | |||||||
C Class/Shares Authorized | 40,000,000 | 50,000,000 | ||||||||
Sold | — | — | 100,000 | 1,000,000 | ||||||
R Class/Shares Authorized | 30,000,000 | 50,000,000 | ||||||||
Sold | 1,585 | 17,557 | 20,378 | 203,997 | ||||||
Issued in reinvestment of distributions | 73 | 737 | — | — | ||||||
Redeemed | (71 | ) | (779 | ) | (45 | ) | (487 | ) | ||
1,587 | 17,515 | 20,333 | 203,510 | |||||||
R6 Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | — | — | 20,000 | 200,000 | ||||||
Issued in reinvestment of distributions | 244 | 2,472 | — | — | ||||||
244 | 2,472 | 20,000 | 200,000 | |||||||
Net increase (decrease) | 146,202 | $ | 1,606,858 | 527,499 | $ | 5,289,203 |
(1) | April 7, 2016 (fund inception) through November 30, 2016. |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
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The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | ||||||||
Argentina | $ | 88,665 | — | — | ||||
Brazil | 67,835 | $ | 469,875 | — | ||||
China | 554,826 | 976,484 | — | |||||
Russia | 74,488 | 208,272 | — | |||||
Other Countries | — | 4,389,832 | — | |||||
Exchange-Traded Funds | 359,530 | — | — | |||||
Temporary Cash Investments | 834 | 722,215 | — | |||||
$ | 1,146,178 | $ | 6,766,678 | — |
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.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 6,666,753 | |
Gross tax appreciation of investments | $ | 1,379,190 | |
Gross tax depreciation of investments | (133,087 | ) | |
Net tax appreciation (depreciation) of investments | $ | 1,246,103 |
The cost of investments for federal income tax purposes was the same as the cost for financial reporting purposes.
As of November 30, 2016, the fund had accumulated short-term capital losses of $(188,223), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
9. Recently Issued Accounting Guidance
In October 2016, the Securities and Exchange Commission adopted new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other provisions. Compliance with the amendments is effective on August 1, 2017. Management is currently evaluating the impact that adopting the amendments will have on the financial statement disclosures.
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Financial Highlights |
For a Share Outstanding Throughout the Periods Indicated | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2017(4) | $10.45 | (0.01) | 1.40 | 1.39 | (0.09) | $11.75 | 13.41% | 1.60%(5) | (0.14)%(5) | 29% | $3,896 | ||
2016(6) | $10.00 | 0.04 | 0.41 | 0.45 | — | $10.45 | 4.50% | 1.60%(5) | 0.59%(5) | 51% | $2,373 | ||
I Class(7) | |||||||||||||
2017(4) | $10.46 | —(8) | 1.40 | 1.40 | (0.11) | $11.75 | 13.53% | 1.40%(5) | 0.06%(5) | 29% | $713 | ||
2016(6) | $10.00 | 0.05 | 0.41 | 0.46 | — | $10.46 | 4.60% | 1.40%(5) | 0.79%(5) | 51% | $628 | ||
A Class | |||||||||||||
2017(4) | $10.43 | (0.02) | 1.40 | 1.38 | (0.06) | $11.75 | 13.34% | 1.85%(5) | (0.39)%(5) | 29% | $1,637 | ||
2016(6) | $10.00 | 0.02 | 0.41 | 0.43 | — | $10.43 | 4.30% | 1.85%(5) | 0.34%(5) | 51% | $1,043 | ||
C Class | |||||||||||||
2017(4) | $10.38 | (0.06) | 1.40 | 1.34 | — | $11.72 | 12.91% | 2.60%(5) | (1.14)%(5) | 29% | $1,172 | ||
2016(6) | $10.00 | (0.03) | 0.41 | 0.38 | — | $10.38 | 3.80% | 2.60%(5) | (0.41)%(5) | 51% | $1,038 | ||
R Class | |||||||||||||
2017(4) | $10.41 | (0.04) | 1.41 | 1.37 | (0.04) | $11.74 | 13.18% | 2.10%(5) | (0.64)%(5) | 29% | $257 | ||
2016(6) | $10.00 | 0.01 | 0.40 | 0.41 | — | $10.41 | 4.10% | 2.10%(5) | 0.09%(5) | 51% | $212 | ||
R6 Class | |||||||||||||
2017(4) | $10.47 | 0.01 | 1.40 | 1.41 | (0.12) | $11.76 | 13.69% | 1.25%(5) | 0.21%(5) | 29% | $238 | ||
2016(6) | $10.00 | 0.06 | 0.41 | 0.47 | — | $10.47 | 4.70% | 1.25%(5) | 0.94%(5) | 51% | $209 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Ratio of operating expenses to average net assets does not include any fees and expenses of the acquired funds. |
(4) | Six months ended May 31, 2017 (unaudited). |
(5) | Annualized. |
(6) | April 7, 2016 (fund inception) through November 30, 2016. |
(7) | Prior to April 10, 2017, the I Class was referred to as the Institutional Class. |
(8) | Per-share amount was less than $0.005. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
Distributions you receive from 403(b), 457 and qualified plans are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on the "About Us" page of 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 fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s 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 fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2017 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92636 1707 |
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Semiannual Report | |
May 31, 2017 | |
Focused International Growth Fund |
Table of Contents |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2017. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, we encourage you to visit our website, americancentury.com.
“Risk-On” Sentiment Generally Prevailed Among Investors
Optimism surrounding President Trump’s aggressive pro-growth agenda, along with improving global economic data, upbeat corporate earnings reports in the U.S. and Europe, and continued accommodative central bank policies, triggered rallies among higher-risk assets during the six-month period. In addition, moderate candidate Emmanuel Macron’s victory in France’s presidential election helped ease political uncertainty in Europe, which further aided financial market performance. Global equity markets soared, including the S&P 500 Index, the MSCI EAFE Index, and the MSCI Emerging Markets Index, which gained 10.81%, 17.91%, and 17.51%, respectively. Within these indices, growth stocks significantly outperformed their value counterparts, as investors generally favored companies expected to perform well as economic fundamentals improve.
A similar pattern prevailed within the global fixed-income markets, where higher-risk and higher-yielding sectors were top performers. Meanwhile, yields on short-maturity U.S. Treasuries increased as the Federal Reserve (the Fed) raised its interest rate target twice during the reporting period. However, yields on longer-maturity U.S. Treasuries declined, largely due to waning U.S. economic growth and inflation expectations as the reporting period unfolded. Outside the U.S., ongoing central bank stimulus programs helped keep government bond yields low. Overall, returns among broad U.S. and global fixed-income indices were positive.
Late in the reporting period, investor optimism toward President Trump’s policy agenda faded as health care and tax reform remained stalled. Further delays to these and other pro-growth proposals, combined with the Fed’s efforts to normalize U.S. monetary policy, may impede future risk-on sentiment. Meanwhile, as the Fed continues to tighten, central banks in Europe, the U.K., and Japan remain extremely accommodative. In this environment, we continue to believe in a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Fund Characteristics |
MAY 31, 2017 | |
Top Ten Holdings | % of net assets |
Tencent Holdings Ltd. | 3.9% |
Kering | 3.8% |
Alibaba Group Holding Ltd. ADR | 3.8% |
Roche Holding AG | 3.2% |
London Stock Exchange Group plc | 3.2% |
AIA Group Ltd. | 2.8% |
Lonza Group AG | 2.8% |
KBC Group NV | 2.7% |
adidas AG | 2.7% |
CRH plc | 2.6% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 94.7% |
Temporary Cash Investments | 4.9% |
Other Assets and Liabilities | 0.4% |
Investments by Country | % of net assets |
United Kingdom | 16.5% |
Japan | 12.8% |
China | 7.7% |
Germany | 6.7% |
Switzerland | 6.0% |
France | 6.0% |
Ireland | 4.7% |
Australia | 4.5% |
India | 4.0% |
Denmark | 4.0% |
Russia | 3.5% |
Hong Kong | 2.8% |
Belgium | 2.7% |
Portugal | 2.6% |
Indonesia | 2.5% |
Austria | 2.4% |
Other Countries | 5.3% |
Cash and Equivalents* | 5.3% |
*Includes temporary cash investments and other assets and liabilities.
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Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2016 to May 31, 2017.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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Beginning Account Value 12/1/16 | Ending Account Value 5/31/17 | Expenses Paid During Period(1) 12/1/16 - 5/31/17 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,157.60 | $6.62 | 1.23% |
I Class | $1,000 | $1,158.70 | $5.54 | 1.03% |
A Class | $1,000 | $1,156.00 | $7.96 | 1.48% |
C Class | $1,000 | $1,151.90 | $11.96 | 2.23% |
R Class | $1,000 | $1,154.30 | $9.29 | 1.73% |
R6 Class | $1,000 | $1,159.30 | $4.74 | 0.88% |
Hypothetical | ||||
Investor Class | $1,000 | $1,018.80 | $6.19 | 1.23% |
I Class | $1,000 | $1,019.80 | $5.19 | 1.03% |
A Class | $1,000 | $1,017.55 | $7.44 | 1.48% |
C Class | $1,000 | $1,013.81 | $11.20 | 2.23% |
R Class | $1,000 | $1,016.31 | $8.70 | 1.73% |
R6 Class | $1,000 | $1,020.54 | $4.43 | 0.88% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 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 |
MAY 31, 2017 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 94.7% | |||||
Australia — 4.5% | |||||
CSL Ltd. | 1,570 | $ | 150,828 | ||
Treasury Wine Estates Ltd. | 14,560 | 140,861 | |||
291,689 | |||||
Austria — 2.4% | |||||
Erste Group Bank AG | 4,210 | 152,756 | |||
Belgium — 2.7% | |||||
KBC Group NV | 2,310 | 173,809 | |||
Brazil — 1.7% | |||||
Itau Unibanco Holding SA Preference Shares | 9,700 | 106,864 | |||
China — 7.7% | |||||
Alibaba Group Holding Ltd. ADR(1) | 1,990 | 243,695 | |||
Tencent Holdings Ltd. | 7,400 | 254,120 | |||
497,815 | |||||
Denmark — 4.0% | |||||
AP Moller - Maersk A/S, B Shares | 60 | 114,265 | |||
DSV A/S | 2,290 | 139,410 | |||
253,675 | |||||
France — 6.0% | |||||
Kering | 740 | 244,728 | |||
TOTAL SA | 2,700 | 143,372 | |||
388,100 | |||||
Germany — 6.7% | |||||
adidas AG | 900 | 172,125 | |||
Infineon Technologies AG | 5,870 | 129,837 | |||
Zalando SE(1) | 2,650 | 126,547 | |||
428,509 | |||||
Hong Kong — 2.8% | |||||
AIA Group Ltd. | 25,600 | 181,507 | |||
India — 4.0% | |||||
HDFC Bank Ltd. ADR | 1,620 | 142,236 | |||
Tata Motors Ltd. ADR | 3,110 | 114,541 | |||
256,777 | |||||
Indonesia — 2.5% | |||||
Bank Mandiri Persero Tbk PT | 172,800 | 163,460 | |||
Ireland — 4.7% | |||||
CRH plc | 4,650 | 167,442 | |||
Ryanair Holdings plc ADR(1) | 1,270 | 135,560 | |||
303,002 | |||||
Japan — 12.8% | |||||
Calbee, Inc. | 3,900 | 151,070 | |||
Komatsu Ltd. | 4,900 | 116,516 | |||
MonotaRO Co. Ltd. | 4,000 | 134,718 | |||
Omron Corp. | 848 | 35,452 | |||
ORIX Corp. | 8,800 | 138,893 | |||
Pola Orbis Holdings, Inc. | 800 | 22,393 |
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Shares | Value | ||||
Shin-Etsu Chemical Co. Ltd. | 1,300 | $ | 116,583 | ||
Start Today Co. Ltd. | 4,400 | 109,811 | |||
825,436 | |||||
Portugal — 2.6% | |||||
Jeronimo Martins SGPS SA | 8,350 | 166,213 | |||
Russia — 3.5% | |||||
X5 Retail Group NV GDR(1) | 3,140 | 113,668 | |||
Yandex NV, A Shares(1) | 4,110 | 108,833 | |||
222,501 | |||||
Sweden — 1.7% | |||||
Lundin Petroleum AB(1) | 5,610 | 108,955 | |||
Switzerland — 6.0% | |||||
Lonza Group AG | 870 | 180,189 | |||
Roche Holding AG | 760 | 208,567 | |||
388,756 | |||||
Taiwan — 1.9% | |||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 18,000 | 121,480 | |||
United Kingdom — 16.5% | |||||
Ashtead Group plc | 4,980 | 100,482 | |||
London Stock Exchange Group plc | 4,690 | 206,967 | |||
Shire plc | 2,090 | 120,411 | |||
St. James's Place plc | 7,550 | 114,107 | |||
Tullow Oil plc(1) | 38,146 | 89,845 | |||
Weir Group plc (The) | 5,750 | 134,540 | |||
Wolseley plc | 2,020 | 132,996 | |||
Worldpay Group plc | 40,750 | 163,079 | |||
1,062,427 | |||||
TOTAL COMMON STOCKS (Cost $5,215,026) | 6,093,731 | ||||
TEMPORARY CASH INVESTMENTS — 4.9% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.875% - 2.125%, 9/30/17 - 2/15/26, valued at $176,584), in a joint trading account at 0.70%, dated 5/31/17, due 6/1/17 (Delivery value $173,126) | 173,123 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 1.00%, 2/15/46, valued at $151,983), at 0.22%, dated 5/31/17, due 6/1/17 (Delivery value $144,001) | 144,000 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 410 | 410 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $317,533) | 317,533 | ||||
TOTAL INVESTMENT SECURITIES — 99.6% (Cost $5,532,559) | 6,411,264 | ||||
OTHER ASSETS AND LIABILITIES — 0.4% | 27,279 | ||||
TOTAL NET ASSETS — 100.0% | $ | 6,438,543 |
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MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Financials | 21.5 | % |
Information Technology | 16.4 | % |
Industrials | 15.7 | % |
Consumer Discretionary | 12.0 | % |
Health Care | 10.2 | % |
Consumer Staples | 9.2 | % |
Energy | 5.3 | % |
Materials | 4.4 | % |
Cash and Equivalents* | 5.3 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
GDR | - | Global Depositary Receipt |
(1) | Non-income producing. |
See Notes to Financial Statements.
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Statement of Assets and Liabilities |
MAY 31, 2017 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $5,532,559) | $ | 6,411,264 | |
Foreign currency holdings, at value (cost of $9,015) | 9,024 | ||
Receivable for investments sold | 31,423 | ||
Dividends and interest receivable | 16,825 | ||
6,468,536 | |||
Liabilities | |||
Payable for investments purchased | 22,449 | ||
Accrued management fees | 6,271 | ||
Distribution and service fees payable | 1,273 | ||
29,993 | |||
Net Assets | $ | 6,438,543 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 5,799,073 | |
Undistributed net investment income | 4,676 | ||
Accumulated net realized loss | (244,062 | ) | |
Net unrealized appreciation | 878,856 | ||
$ | 6,438,543 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $3,058,774 | 273,209 | $11.20 | |||
I Class, $0.01 Par Value | $678,546 | 60,585 | $11.20 | |||
A Class, $0.01 Par Value | $1,130,489 | 101,014 | $11.19* | |||
C Class, $0.01 Par Value | $1,115,129 | 100,000 | $11.15 | |||
R Class, $0.01 Par Value | $229,026 | 20,473 | $11.19 | |||
R6 Class, $0.01 Par Value | $226,579 | 20,225 | $11.20 |
*Maximum offering price $11.87 (net asset value divided by 0.9425).
See Notes to Financial Statements.
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Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $5,548) | $ | 56,766 | |
Interest | 287 | ||
57,053 | |||
Expenses: | |||
Management fees | 32,657 | ||
Distribution and service fees: | |||
A Class | 1,298 | ||
C Class | 5,131 | ||
R Class | 523 | ||
Directors' fees and expenses | 77 | ||
39,686 | |||
Net investment income (loss) | 17,367 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | (89,967 | ) | |
Foreign currency transactions | (1,351 | ) | |
(91,318 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | 876,888 | ||
Translation of assets and liabilities in foreign currencies | 500 | ||
877,388 | |||
Net realized and unrealized gain (loss) | 786,070 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 803,437 |
See Notes to Financial Statements.
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Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) AND PERIOD ENDED NOVEMBER 30, 2016 | ||||||
Increase (Decrease) in Net Assets | May 31, 2017 | November 30, 2016(1) | ||||
Operations | ||||||
Net investment income (loss) | $ | 17,367 | $ | 11,526 | ||
Net realized gain (loss) | (91,318 | ) | (150,814 | ) | ||
Change in net unrealized appreciation (depreciation) | 877,388 | 1,468 | ||||
Net increase (decrease) in net assets resulting from operations | 803,437 | (137,820 | ) | |||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (15,998 | ) | — | |||
I Class | (5,676 | ) | — | |||
A Class | (5,085 | ) | — | |||
R Class | (529 | ) | — | |||
R6 Class | (2,184 | ) | — | |||
Decrease in net assets from distributions | (29,472 | ) | — | |||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 666,418 | 5,135,980 | ||||
Net increase (decrease) in net assets | 1,440,383 | 4,998,160 | ||||
Net Assets | ||||||
Beginning of period | 4,998,160 | — | ||||
End of period | $ | 6,438,543 | $ | 4,998,160 | ||
Undistributed net investment income | $ | 4,676 | $ | 16,781 |
(1) | March 29, 2016 (fund inception) through November 30, 2016. |
See Notes to Financial Statements.
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Notes to Financial Statements |
MAY 31, 2017 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Focused International Growth Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek capital growth.
The fund offers the Investor Class, I Class (formerly Institutional Class), A Class, C Class, R Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge. All classes of the fund commenced sale on March 29, 2016, the fund's inception date.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. If significant fluctuations in foreign markets are identified, the
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fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
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3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. ACIM owns 87% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class.
The annual management fee for each class is as follows:
Investor Class | I Class | A Class | C Class | R Class | R6 Class |
1.23% | 1.03% | 1.23% | 1.23% | 1.23% | 0.88% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2017 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Acquired Fund Fees and Expenses — The fund may invest in mutual funds, exchange-traded funds, and business development companies (the acquired funds). The 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.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2017 were $2,965,558 and $2,575,745, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2017 | Period ended November 30, 2016(1) | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 72,295 | $ | 771,916 | 220,924 | $ | 2,212,252 | ||||
Issued in reinvestment of distributions | 1,649 | 15,998 | — | — | ||||||
Redeemed | (13,450 | ) | (137,414 | ) | (8,209 | ) | (83,202 | ) | ||
60,494 | 650,500 | 212,715 | 2,129,050 | |||||||
I Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | — | — | 60,000 | 600,000 | ||||||
Issued in reinvestment of distributions | 585 | 5,676 | — | — | ||||||
585 | 5,676 | 60,000 | 600,000 | |||||||
A Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | — | — | 100,491 | 1,005,000 | ||||||
Issued in reinvestment of distributions | 523 | 5,085 | — | — | ||||||
523 | 5,085 | 100,491 | 1,005,000 | |||||||
C Class/Shares Authorized | 40,000,000 | 50,000,000 | ||||||||
Sold | — | — | 100,000 | 1,000,000 | ||||||
R Class/Shares Authorized | 30,000,000 | 50,000,000 | ||||||||
Sold | 276 | 2,912 | 20,203 | 202,104 | ||||||
Issued in reinvestment of distributions | 54 | 529 | — | — | ||||||
Redeemed | (43 | ) | (468 | ) | (17 | ) | (174 | ) | ||
287 | 2,973 | 20,186 | 201,930 | |||||||
R6 Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | — | — | 20,000 | 200,000 | ||||||
Issued in reinvestment of distributions | 225 | 2,184 | — | — | ||||||
225 | 2,184 | 20,000 | 200,000 | |||||||
Net increase (decrease) | 62,114 | $ | 666,418 | 513,392 | $ | 5,135,980 |
(1) | March 29, 2016 (fund inception) through November 30, 2016. |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
15
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | ||||||||
China | $ | 243,695 | $ | 254,120 | — | |||
India | 256,777 | — | — | |||||
Ireland | 135,560 | 167,442 | — | |||||
Russia | 108,833 | 113,668 | — | |||||
Other Countries | — | 4,813,636 | — | |||||
Temporary Cash Investments | 410 | 317,123 | — | |||||
$ | 745,275 | $ | 5,665,989 | — |
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 period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 5,543,609 | |
Gross tax appreciation of investments | $ | 913,352 | |
Gross tax depreciation of investments | (45,697 | ) | |
Net tax appreciation (depreciation) of investments | $ | 867,655 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2016, the fund had accumulated short-term capital losses of $(150,392), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
9. Recently Issued Accounting Guidance
In October 2016, the Securities and Exchange Commission adopted new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other provisions. Compliance with the amendments is effective on August 1, 2017. Management is currently evaluating the impact that adopting the amendments will have on the financial statement disclosures.
16
Financial Highlights |
For a Share Outstanding Throughout the Periods Indicated | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2017(3) | $9.75 | 0.05 | 1.48 | 1.53 | (0.08) | $11.20 | 15.76% | 1.23%(4) | 0.85%(4) | 48% | $3,059 | ||
2016(5) | $10.00 | 0.04 | (0.29) | (0.25) | — | $9.75 | (2.50)% | 1.23%(4) | 0.56%(4) | 47% | $2,074 | ||
I Class(6) | |||||||||||||
2017(3) | $9.76 | 0.05 | 1.48 | 1.53 | (0.09) | $11.20 | 15.87% | 1.03%(4) | 1.05%(4) | 48% | $679 | ||
2016(5) | $10.00 | 0.05 | (0.29) | (0.24) | — | $9.76 | (2.40)% | 1.03%(4) | 0.76%(4) | 47% | $586 | ||
A Class | |||||||||||||
2017(3) | $9.73 | 0.03 | 1.48 | 1.51 | (0.05) | $11.19 | 15.60% | 1.48%(4) | 0.60%(4) | 48% | $1,130 | ||
2016(5) | $10.00 | 0.02 | (0.29) | (0.27) | — | $9.73 | (2.70)% | 1.48%(4) | 0.31%(4) | 47% | $978 | ||
C Class | |||||||||||||
2017(3) | $9.68 | (0.01) | 1.48 | 1.47 | — | $11.15 | 15.19% | 2.23%(4) | (0.15)%(4) | 48% | $1,115 | ||
2016(5) | $10.00 | (0.03) | (0.29) | (0.32) | — | $9.68 | (3.20)% | 2.23%(4) | (0.44)%(4) | 47% | $968 | ||
R Class | |||||||||||||
2017(3) | $9.72 | 0.02 | 1.48 | 1.50 | (0.03) | $11.19 | 15.43% | 1.73%(4) | 0.35%(4) | 48% | $229 | ||
2016(5) | $10.00 | —(7) | (0.28) | (0.28) | — | $9.72 | (2.80)% | 1.73%(4) | 0.06%(4) | 47% | $196 | ||
R6 Class | |||||||||||||
2017(3) | $9.77 | 0.06 | 1.48 | 1.54 | (0.11) | $11.20 | 15.93% | 0.88%(4) | 1.20%(4) | 48% | $227 | ||
2016(5) | $10.00 | 0.06 | (0.29) | (0.23) | — | $9.77 | (2.30)% | 0.88%(4) | 0.91%(4) | 47% | $195 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2017 (unaudited). |
(4) | Annualized. |
(5) | March 29, 2016 (fund inception) through November 30, 2016. |
(6) | Prior to April 10, 2017, the I Class was referred to as the Institutional Class. |
(7) | Per-share amount was less than $0.005. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
Distributions you receive from 403(b), 457 and qualified plans are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on the "About Us" page of 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 fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s 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 fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
19
Notes |
20
![]() | ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2017 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92637 1707 |
![acihorizblkb99.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/acihorizblkb99.jpg)
Semiannual Report | |
May 31, 2017 | |
Global Growth Fund |
Table of Contents |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2017. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, we encourage you to visit our website, americancentury.com.
“Risk-On” Sentiment Generally Prevailed Among Investors
Optimism surrounding President Trump’s aggressive pro-growth agenda, along with improving global economic data, upbeat corporate earnings reports in the U.S. and Europe, and continued accommodative central bank policies, triggered rallies among higher-risk assets during the six-month period. In addition, moderate candidate Emmanuel Macron’s victory in France’s presidential election helped ease political uncertainty in Europe, which further aided financial market performance. Global equity markets soared, including the S&P 500 Index, the MSCI EAFE Index, and the MSCI Emerging Markets Index, which gained 10.81%, 17.91%, and 17.51%, respectively. Within these indices, growth stocks significantly outperformed their value counterparts, as investors generally favored companies expected to perform well as economic fundamentals improve.
A similar pattern prevailed within the global fixed-income markets, where higher-risk and higher-yielding sectors were top performers. Meanwhile, yields on short-maturity U.S. Treasuries increased as the Federal Reserve (the Fed) raised its interest rate target twice during the reporting period. However, yields on longer-maturity U.S. Treasuries declined, largely due to waning U.S. economic growth and inflation expectations as the reporting period unfolded. Outside the U.S., ongoing central bank stimulus programs helped keep government bond yields low. Overall, returns among broad U.S. and global fixed-income indices were positive.
Late in the reporting period, investor optimism toward President Trump’s policy agenda faded as health care and tax reform remained stalled. Further delays to these and other pro-growth proposals, combined with the Fed’s efforts to normalize U.S. monetary policy, may impede future risk-on sentiment. Meanwhile, as the Fed continues to tighten, central banks in Europe, the U.K., and Japan remain extremely accommodative. In this environment, we continue to believe in a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2017 | |
Top Ten Holdings | % of net assets |
Alphabet, Inc.* | 4.0% |
Facebook, Inc., Class A | 2.6% |
Tencent Holdings Ltd. | 2.2% |
Martin Marietta Materials, Inc. | 2.1% |
Pioneer Natural Resources Co. | 1.9% |
Equinix, Inc. | 1.9% |
Adobe Systems, Inc. | 1.8% |
CRH plc | 1.7% |
Kering | 1.7% |
Visa, Inc., Class A | 1.7% |
*Includes all classes of the issuer held by the fund. | |
Types of Investments in Portfolio | % of net assets |
Domestic Common Stocks | 62.2% |
Foreign Common Stocks | 36.5% |
Total Common Stocks | 98.7% |
Temporary Cash Investments | 1.1% |
Other Assets and Liabilities | 0.2% |
Investments by Country | % of net assets |
United States | 62.2% |
France | 8.0% |
Japan | 4.5% |
China | 3.6% |
United Kingdom | 3.3% |
Hong Kong | 2.3% |
Other Countries | 14.8% |
Cash and Equivalents** | 1.3% |
**Includes temporary cash investments and other assets and liabilities.
3
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2016 to May 31, 2017 (except as noted).
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
4
Beginning Account Value 12/1/16 | Ending Account Value 5/31/17 | Expenses Paid During Period(1) 12/1/16 - 5/31/17 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,161.90 | $5.82 | 1.08% |
I Class | $1,000 | $1,162.60 | $4.74 | 0.88% |
Y Class | $1,000 | $1,059.40(2) | $1.07(3) | 0.73% |
A Class | $1,000 | $1,160.50 | $7.16 | 1.33% |
C Class | $1,000 | $1,155.70 | $11.18 | 2.08% |
R Class | $1,000 | $1,158.60 | $8.50 | 1.58% |
R5 Class | $1,000 | $1,059.70(2) | $1.29(3) | 0.88% |
R6 Class | $1,000 | $1,163.30 | $3.94 | 0.73% |
Hypothetical | ||||
Investor Class | $1,000 | $1,019.55 | $5.44 | 1.08% |
I Class | $1,000 | $1,020.54 | $4.43 | 0.88% |
Y Class | $1,000 | $1,021.29(4) | $3.68(4) | 0.73% |
A Class | $1,000 | $1,018.30 | $6.69 | 1.33% |
C Class | $1,000 | $1,014.56 | $10.45 | 2.08% |
R Class | $1,000 | $1,017.05 | $7.95 | 1.58% |
R5 Class | $1,000 | $1,020.54(4) | $4.43(4) | 0.88% |
R6 Class | $1,000 | $1,021.29 | $3.68 | 0.73% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. |
(2) | Ending account value based on actual return from April 10, 2017 (commencement of sale) through May 31, 2017. |
(3) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 52, the number of days in the period from April 10, 2017 (commencement of sale) through May 31, 2017, divided by 365, to reflect the period. Had the class been available for the full period, the expenses paid during the period would have been higher. |
(4) | Ending account value and expenses paid during the period assumes the class had been available throughout the entire period and are calculated using the class's annualized expense ratio listed in the table above. |
5
Schedule of Investments |
MAY 31, 2017 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 98.7% | |||||
Austria — 0.7% | |||||
Erste Group Bank AG | 103,750 | $ | 3,764,484 | ||
Belgium — 0.3% | |||||
UCB SA | 23,720 | 1,673,892 | |||
Brazil — 0.8% | |||||
BM&FBovespa SA - Bolsa de Valores Mercadorias e Futuros | 465,700 | 2,684,005 | |||
CCR SA | 323,800 | 1,662,052 | |||
4,346,057 | |||||
China — 3.6% | |||||
Alibaba Group Holding Ltd. ADR(1) | 58,440 | 7,156,563 | |||
Tencent Holdings Ltd. | 335,900 | 11,534,971 | |||
18,691,534 | |||||
Denmark — 0.8% | |||||
AP Moller - Maersk A/S, B Shares | 2,180 | 4,151,628 | |||
France — 8.0% | |||||
Danone SA | 81,030 | 6,014,932 | |||
Ingenico Group SA | 36,750 | 3,572,639 | |||
Kering | 27,080 | 8,955,737 | |||
Legrand SA | 61,460 | 4,213,575 | |||
Thales SA | 34,070 | 3,762,953 | |||
TOTAL SA | 158,290 | 8,405,314 | |||
Valeo SA | 77,760 | 5,413,182 | |||
Vivendi SA | 71,840 | 1,557,941 | |||
41,896,273 | |||||
Germany — 1.5% | |||||
Fresenius Medical Care AG & Co. KGaA | 49,183 | 4,705,064 | |||
Zalando SE(1) | 63,560 | 3,035,217 | |||
7,740,281 | |||||
Hong Kong — 2.3% | |||||
AIA Group Ltd. | 804,200 | 5,701,863 | |||
Hang Seng Bank Ltd. | 148,100 | 3,126,377 | |||
Melco Resorts & Entertainment Ltd. ADR | 134,009 | 3,025,923 | |||
11,854,163 | |||||
Hungary — 0.5% | |||||
OTP Bank plc | 80,490 | 2,509,464 | |||
India — 1.5% | |||||
HDFC Bank Ltd. | 210,380 | 5,356,180 | |||
Tata Motors Ltd. ADR | 67,430 | 2,483,447 | |||
7,839,627 | |||||
Indonesia — 1.4% | |||||
Astra International Tbk PT | 5,940,300 | 3,902,224 | |||
Bank Central Asia Tbk PT | 2,652,700 | 3,415,451 | |||
7,317,675 | |||||
Ireland — 1.7% | |||||
CRH plc | 251,475 | 9,055,354 |
6
Shares | Value | ||||
Japan — 4.5% | |||||
Keyence Corp. | 11,800 | $ | 5,360,343 | ||
ORIX Corp. | 376,900 | 5,948,724 | |||
Pola Orbis Holdings, Inc. | 33,800 | 946,095 | |||
Rakuten, Inc. | 220,300 | 2,677,416 | |||
Rohm Co. Ltd. | 21,200 | 1,701,743 | |||
Start Today Co. Ltd. | 170,900 | 4,265,170 | |||
Sysmex Corp. | 40,600 | 2,412,171 | |||
23,311,662 | |||||
Netherlands — 1.1% | |||||
ASML Holding NV | 17,800 | 2,349,485 | |||
Unilever NV CVA | 62,470 | 3,557,905 | |||
5,907,390 | |||||
Poland — 0.4% | |||||
Powszechny Zaklad Ubezpieczen SA | 179,130 | 2,134,604 | |||
Portugal — 0.9% | |||||
Jeronimo Martins SGPS SA | 236,760 | 4,712,886 | |||
Spain — 0.8% | |||||
Industria de Diseno Textil SA | 98,300 | 4,018,927 | |||
Switzerland — 1.9% | |||||
Julius Baer Group Ltd. | 75,490 | 3,908,754 | |||
Roche Holding AG | 21,011 | 5,766,066 | |||
9,674,820 | |||||
Turkey — 0.5% | |||||
Turkiye Garanti Bankasi AS | 1,032,980 | 2,810,910 | |||
United Kingdom — 3.3% | |||||
Ashtead Group plc | 247,108 | 4,985,932 | |||
London Stock Exchange Group plc | 100,990 | 4,456,631 | |||
Shire plc | 79,050 | 4,554,313 | |||
Weir Group plc (The) | 142,990 | 3,345,718 | |||
17,342,594 | |||||
United States — 62.2% | |||||
Adobe Systems, Inc.(1) | 64,797 | 9,192,102 | |||
Agilent Technologies, Inc. | 90,240 | 5,445,082 | |||
Allegion plc | 64,236 | 5,050,877 | |||
Allergan plc | 22,760 | 5,092,550 | |||
Alliance Data Systems Corp. | 27,522 | 6,636,380 | |||
Alphabet, Inc., Class A(1) | 11,555 | 11,405,825 | |||
Alphabet, Inc., Class C(1) | 9,844 | 9,498,082 | |||
American Express Co. | 94,570 | 7,276,216 | |||
American Tower Corp. | 40,860 | 5,360,423 | |||
AMETEK, Inc. | 54,160 | 3,304,843 | |||
Autodesk, Inc.(1) | 71,360 | 7,975,907 | |||
Bank of America Corp. | 144,700 | 3,242,727 | |||
Becton Dickinson and Co. | 39,920 | 7,554,062 | |||
Boston Scientific Corp.(1) | 260,330 | 7,036,720 | |||
Celgene Corp.(1) | 75,068 | 8,588,530 | |||
Cerner Corp.(1) | 57,240 | 3,740,634 | |||
Citizens Financial Group, Inc. | 93,640 | 3,193,124 | |||
Cognizant Technology Solutions Corp., Class A | 50,810 | 3,399,697 | |||
Comerica, Inc. | 68,870 | 4,721,727 |
7
Shares | Value | ||||
Costco Wholesale Corp. | 21,210 | $ | 3,826,920 | ||
Danaher Corp. | 47,160 | 4,005,770 | |||
EOG Resources, Inc. | 88,130 | 7,959,020 | |||
EQT Corp. | 114,070 | 6,304,649 | |||
Equinix, Inc. | 21,956 | 9,682,816 | |||
Facebook, Inc., Class A(1) | 89,641 | 13,577,026 | |||
Fidelity National Information Services, Inc. | 46,905 | 4,027,732 | |||
Fortune Brands Home & Security, Inc. | 103,103 | 6,505,799 | |||
HD Supply Holdings, Inc.(1) | 104,390 | 4,212,136 | |||
Home Depot, Inc. (The) | 51,254 | 7,868,001 | |||
IHS Markit Ltd.(1) | 127,200 | 5,832,120 | |||
Ingersoll-Rand plc | 45,795 | 4,103,232 | |||
Intercontinental Exchange, Inc. | 145,610 | 8,764,266 | |||
Lennox International, Inc. | 21,990 | 3,894,429 | |||
MarketAxess Holdings, Inc. | 15,903 | 3,030,794 | |||
Martin Marietta Materials, Inc. | 49,930 | 11,189,313 | |||
Mastercard, Inc., Class A | 57,790 | 7,101,235 | |||
Mondelez International, Inc., Class A | 89,610 | 4,174,930 | |||
Monster Beverage Corp.(1) | 87,120 | 4,404,787 | |||
MSCI, Inc., Class A | 44,820 | 4,559,539 | |||
Netflix, Inc.(1) | 12,780 | 2,084,035 | |||
Newell Brands, Inc. | 131,970 | 6,987,811 | |||
PayPal Holdings, Inc.(1) | 114,980 | 6,003,106 | |||
Pioneer Natural Resources Co. | 58,388 | 9,742,622 | |||
Priceline Group, Inc. (The)(1) | 1,710 | 3,209,824 | |||
Roper Technologies, Inc. | 37,970 | 8,626,784 | |||
SBA Communications Corp.(1) | 17,600 | 2,431,968 | |||
Sirius XM Holdings, Inc. | 860,760 | 4,518,990 | |||
Sysco Corp. | 60,910 | 3,323,250 | |||
Texas Capital Bancshares, Inc.(1) | 45,040 | 3,305,936 | |||
Texas Instruments, Inc. | 51,540 | 4,251,535 | |||
Ulta Salon Cosmetics & Fragrance, Inc.(1) | 10,350 | 3,155,094 | |||
UnitedHealth Group, Inc. | 27,296 | 4,781,713 | |||
Visa, Inc., Class A | 92,142 | 8,774,683 | |||
Zions Bancorporation | 143,859 | 5,764,430 | |||
Zoetis, Inc. | 93,648 | 5,832,397 | |||
325,534,200 | |||||
TOTAL COMMON STOCKS (Cost $361,428,925) | 516,288,425 | ||||
TEMPORARY CASH INVESTMENTS — 1.1% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.875% - 2.125%, 9/30/17 - 2/15/26, valued at $3,063,806), in a joint trading account at 0.70%, dated 5/31/17, due 6/1/17 (Delivery value $3,003,816) | 3,003,758 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.875%, 8/15/45, valued at $2,557,674), at 0.22%, dated 5/31/17, due 6/1/17 (Delivery value $2,504,015) | 2,504,000 | ||||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $5,507,758) | 5,507,758 | ||||
TOTAL INVESTMENT SECURITIES — 99.8% (Cost $366,936,683) | 521,796,183 | ||||
OTHER ASSETS AND LIABILITIES — 0.2% | 1,213,961 | ||||
TOTAL NET ASSETS — 100.0% | $ | 523,010,144 |
8
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Information Technology | 23.8 | % |
Financials | 17.2 | % |
Health Care | 13.5 | % |
Consumer Discretionary | 12.8 | % |
Industrials | 12.1 | % |
Energy | 6.2 | % |
Consumer Staples | 5.9 | % |
Materials | 3.8 | % |
Real Estate | 3.4 | % |
Cash and Equivalents* | 1.3 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
CVA | - | Certificaten Van Aandelen |
(1) | Non-income producing. |
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2017 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $366,936,683) | $ | 521,796,183 | |
Cash | 1,092 | ||
Foreign currency holdings, at value (cost of $215,623) | 215,697 | ||
Receivable for investments sold | 2,770,742 | ||
Receivable for capital shares sold | 88,144 | ||
Dividends and interest receivable | 1,501,768 | ||
Other assets | 1,360 | ||
526,374,986 | |||
Liabilities | |||
Payable for investments purchased | 1,608,758 | ||
Payable for capital shares redeemed | 1,280,733 | ||
Accrued management fees | 460,090 | ||
Distribution and service fees payable | 15,261 | ||
3,364,842 | |||
Net Assets | $ | 523,010,144 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 343,447,436 | |
Distributions in excess of net investment income | (1,727,060 | ) | |
Undistributed net realized gain | 26,403,788 | ||
Net unrealized appreciation | 154,885,980 | ||
$ | 523,010,144 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $417,098,624 | 33,622,843 | $12.41 | |||
I Class, $0.01 Par Value | $43,265,843 | 3,430,683 | $12.61 | |||
Y Class, $0.01 Par Value | $5,293 | 418 | $12.66 | |||
A Class, $0.01 Par Value | $30,241,716 | 2,499,605 | $12.10* | |||
C Class, $0.01 Par Value | $5,907,013 | 550,354 | $10.73 | |||
R Class, $0.01 Par Value | $7,817,410 | 653,861 | $11.96 | |||
R5 Class, $0.01 Par Value | $5,297 | 420 | $12.61 | |||
R6 Class, $0.01 Par Value | $18,668,948 | 1,474,503 | $12.66 |
*Maximum offering price $12.84 (net asset value divided by 0.9425).
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $273,846) | $ | 4,056,723 | |
Interest | 6,795 | ||
4,063,518 | |||
Expenses: | |||
Management fees | 2,591,748 | ||
Distribution and service fees: | |||
A Class | 43,673 | ||
C Class | 31,200 | ||
R Class | 19,466 | ||
Directors' fees and expenses | 7,040 | ||
Other expenses | 9,081 | ||
2,702,208 | |||
Net investment income (loss) | 1,361,310 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 27,780,931 | ||
Foreign currency transactions | (39,092 | ) | |
27,741,839 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | 45,785,254 | ||
Translation of assets and liabilities in foreign currencies | 47,488 | ||
45,832,742 | |||
Net realized and unrealized gain (loss) | 73,574,581 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 74,935,891 |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2016 | ||||||
Increase (Decrease) in Net Assets | May 31, 2017 | November 30, 2016 | ||||
Operations | ||||||
Net investment income (loss) | $ | 1,361,310 | $ | 1,269,097 | ||
Net realized gain (loss) | 27,741,839 | 5,171,444 | ||||
Change in net unrealized appreciation (depreciation) | 45,832,742 | (24,819,740 | ) | |||
Net increase (decrease) in net assets resulting from operations | 74,935,891 | (18,379,199 | ) | |||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (1,172,124 | ) | (479,702 | ) | ||
I Class | (138,636 | ) | (98,254 | ) | ||
A Class | (88,871 | ) | — | |||
C Class | (5,519 | ) | — | |||
R Class | (15,751 | ) | — | |||
R6 Class | (66,880 | ) | (70,054 | ) | ||
From net realized gains: | ||||||
Investor Class | (4,516,594 | ) | (28,545,970 | ) | ||
I Class | (453,950 | ) | (2,099,704 | ) | ||
A Class | (430,288 | ) | (3,017,077 | ) | ||
C Class | (85,683 | ) | (622,424 | ) | ||
R Class | (92,080 | ) | (412,601 | ) | ||
R6 Class | (199,745 | ) | (1,009,189 | ) | ||
Decrease in net assets from distributions | (7,266,121 | ) | (36,354,975 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (35,615,574 | ) | (7,759,236 | ) | ||
Redemption Fees | ||||||
Increase in net assets from redemption fees | 4,032 | 16,755 | ||||
Net increase (decrease) in net assets | 32,058,228 | (62,476,655 | ) | |||
Net Assets | ||||||
Beginning of period | 490,951,916 | 553,428,571 | ||||
End of period | $ | 523,010,144 | $ | 490,951,916 | ||
Distributions in excess of net investment income | $ | (1,727,060 | ) | $ | (1,600,589 | ) |
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2017 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Global Growth Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek capital growth.
The fund offers the Investor Class, I Class (formerly Institutional Class), Y Class, A Class, C Class, R Class, R5 Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge. Sale of the Y Class and R5 Class commenced on April 10, 2017.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of
13
Directors, or its delegate, deems appropriate. If significant fluctuations in foreign markets are identified, the fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund 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 Fees — The fund 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 fund and helps cover transaction costs that long-term investors may bear when the fund sells securities to meet investor redemptions.
14
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account the 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 use very similar investment teams and strategies (strategy assets).
The management fee schedule range and the effective annual management fee for each class for the period ended May 31, 2017 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |
Investor Class | 1.050% to 1.300% | 1.07% |
I Class | 0.850% to 1.100% | 0.87% |
Y Class | 0.700% to 0.950% | 0.72% |
A Class | 1.050% to 1.300% | 1.07% |
C Class | 1.050% to 1.300% | 1.07% |
R Class | 1.050% to 1.300% | 1.07% |
R5 Class | 0.850% to 1.100% | 0.87% |
R6 Class | 0.700% to 0.950% | 0.72% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2017 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
15
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $306,228 and $15,854, respectively. The effect of interfund transactions on the Statement of Operations was $5,580 in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2017 were $144,229,398 and $190,632,565, respectively.
16
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2017(1) | Year ended November 30, 2016 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 350,000,000 | 300,000,000 | ||||||||
Sold | 1,530,311 | $ | 17,886,341 | 2,727,985 | $ | 29,305,976 | ||||
Issued in reinvestment of distributions | 489,710 | 5,515,331 | 2,586,515 | 28,244,747 | ||||||
Redeemed | (4,116,080 | ) | (46,640,969 | ) | (6,568,047 | ) | (70,685,855 | ) | ||
(2,096,059 | ) | (23,239,297 | ) | (1,253,547 | ) | (13,135,132 | ) | |||
I Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||
Sold | 1,579,703 | 18,665,805 | 1,238,720 | 13,699,629 | ||||||
Issued in reinvestment of distributions | 50,829 | 582,556 | 198,510 | 2,197,504 | ||||||
Redeemed | (1,562,950 | ) | (18,527,356 | ) | (799,663 | ) | (8,646,207 | ) | ||
67,582 | 721,005 | 637,567 | 7,250,926 | |||||||
Y Class/Shares Authorized | 50,000,000 | N/A | ||||||||
Sold | 418 | 5,000 | ||||||||
A Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||
Sold | 233,654 | 2,620,430 | 629,395 | 6,620,405 | ||||||
Issued in reinvestment of distributions | 46,105 | 505,916 | 272,105 | 2,906,077 | ||||||
Redeemed | (1,218,484 | ) | (13,966,200 | ) | (1,363,917 | ) | (14,333,551 | ) | ||
(938,725 | ) | (10,839,854 | ) | (462,417 | ) | (4,807,069 | ) | |||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 25,979 | 254,326 | 148,416 | 1,403,670 | ||||||
Issued in reinvestment of distributions | 7,178 | 69,813 | 44,341 | 424,787 | ||||||
Redeemed | (212,179 | ) | (2,099,447 | ) | (265,093 | ) | (2,518,810 | ) | ||
(179,022 | ) | (1,775,308 | ) | (72,336 | ) | (690,353 | ) | |||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 81,501 | 897,728 | 261,294 | 2,727,028 | ||||||
Issued in reinvestment of distributions | 9,907 | 107,627 | 38,905 | 412,005 | ||||||
Redeemed | (107,006 | ) | (1,243,112 | ) | (148,521 | ) | (1,562,953 | ) | ||
(15,598 | ) | (237,757 | ) | 151,678 | 1,576,080 | |||||
R5 Class/Shares Authorized | 50,000,000 | N/A | ||||||||
Sold | 420 | 5,000 | ||||||||
R6 Class/Shares Authorized | 50,000,000 | 40,000,000 | ||||||||
Sold | 122,546 | 1,446,838 | 470,512 | 5,062,149 | ||||||
Issued in reinvestment of distributions | 23,164 | 266,625 | 97,317 | 1,079,243 | ||||||
Redeemed | (165,338 | ) | (1,967,826 | ) | (373,215 | ) | (4,095,080 | ) | ||
(19,628 | ) | (254,363 | ) | 194,614 | 2,046,312 | |||||
Net increase (decrease) | (3,180,612 | ) | $ | (35,615,574 | ) | (804,441 | ) | $ | (7,759,236 | ) |
(1) | April 10, 2017 (commencement of sale) through May 31, 2017 for the Y Class and R5 Class. |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
17
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | ||||||||
Austria | — | $ | 3,764,484 | — | ||||
Belgium | — | 1,673,892 | — | |||||
Brazil | — | 4,346,057 | — | |||||
China | $ | 7,156,563 | 11,534,971 | — | ||||
Denmark | — | 4,151,628 | — | |||||
France | — | 41,896,273 | — | |||||
Germany | — | 7,740,281 | — | |||||
Hong Kong | 3,025,923 | 8,828,240 | — | |||||
Hungary | — | 2,509,464 | — | |||||
India | 2,483,447 | 5,356,180 | — | |||||
Indonesia | — | 7,317,675 | — | |||||
Ireland | — | 9,055,354 | — | |||||
Japan | — | 23,311,662 | — | |||||
Netherlands | — | 5,907,390 | — | |||||
Poland | — | 2,134,604 | — | |||||
Portugal | — | 4,712,886 | — | |||||
Spain | — | 4,018,927 | — | |||||
Switzerland | — | 9,674,820 | — | |||||
Turkey | — | 2,810,910 | — | |||||
United Kingdom | — | 17,342,594 | — | |||||
United States | 325,534,200 | — | — | |||||
Temporary Cash Investments | — | 5,507,758 | — | |||||
$ | 338,200,133 | $ | 183,596,050 | — |
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.
18
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 368,366,766 | |
Gross tax appreciation of investments | $ | 155,936,717 | |
Gross tax depreciation of investments | (2,507,300 | ) | |
Net tax appreciation (depreciation) of investments | $ | 153,429,417 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
9. Recently Issued Accounting Guidance
In October 2016, the Securities and Exchange Commission adopted new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other provisions. Compliance with the amendments is effective on August 1, 2017. Management is currently evaluating the impact that adopting the amendments will have on the financial statement disclosures.
19
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||||
2017(3) | $10.84 | 0.03 | 1.71 | 1.74 | (0.04) | (0.13) | (0.17) | $12.41 | 16.19% | 1.08%(4) | 0.55%(4) | 29% | $417,099 | ||
2016 | $12.01 | 0.03 | (0.42) | (0.39) | (0.01) | (0.77) | (0.78) | $10.84 | (3.24)% | 1.08% | 0.27% | 57% | $387,155 | ||
2015 | $12.94 | —(5) | 0.12 | 0.12 | — | (1.05) | (1.05) | $12.01 | 1.37% | 1.08% | 0.04% | 50% | $443,915 | ||
2014 | $12.39 | —(5) | 0.91 | 0.91 | (0.08) | (0.28) | (0.36) | $12.94 | 7.53% | 1.08% | 0.03% | 46% | $462,889 | ||
2013 | $9.63 | 0.01 | 2.79 | 2.80 | (0.04) | — | (0.04) | $12.39 | 29.15% | 1.09% | 0.11% | 64% | $437,599 | ||
2012 | $8.52 | 0.03 | 1.11 | 1.14 | (0.03) | — | (0.03) | $9.63 | 13.37% | 1.10% | 0.28% | 54% | $373,887 | ||
I Class(6) | |||||||||||||||
2017(3) | $11.01 | 0.05 | 1.72 | 1.77 | (0.04) | (0.13) | (0.17) | $12.61 | 16.26% | 0.88%(4) | 0.75%(4) | 29% | $43,266 | ||
2016 | $12.19 | 0.05 | (0.42) | (0.37) | (0.04) | (0.77) | (0.81) | $11.01 | (3.07)% | 0.88% | 0.47% | 57% | $37,028 | ||
2015 | $13.09 | 0.03 | 0.12 | 0.15 | — | (1.05) | (1.05) | $12.19 | 1.60% | 0.88% | 0.24% | 50% | $33,211 | ||
2014 | $12.52 | 0.03 | 0.91 | 0.94 | (0.09) | (0.28) | (0.37) | $13.09 | 7.68% | 0.88% | 0.23% | 46% | $78,802 | ||
2013 | $9.73 | 0.03 | 2.82 | 2.85 | (0.06) | — | (0.06) | $12.52 | 29.42% | 0.89% | 0.31% | 64% | $80,968 | ||
2012 | $8.60 | 0.05 | 1.13 | 1.18 | (0.05) | — | (0.05) | $9.73 | 13.71% | 0.90% | 0.48% | 54% | $47,203 | ||
Y Class | |||||||||||||||
2017(7) | $11.95 | 0.03 | 0.68 | 0.71 | — | — | — | $12.66 | 5.94% | 0.73%(4) | 1.96%(4) | 29%(8) | $5 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
A Class | |||||||||||||||
2017(3) | $10.58 | 0.01 | 1.67 | 1.68 | (0.03) | (0.13) | (0.16) | $12.10 | 16.05% | 1.33%(4) | 0.30%(4) | 29% | $30,242 | ||
2016 | $11.76 | —(5) | (0.41) | (0.41) | — | (0.77) | (0.77) | $10.58 | (3.52)% | 1.33% | 0.02% | 57% | $36,382 | ||
2015 | $12.72 | (0.02) | 0.11 | 0.09 | — | (1.05) | (1.05) | $11.76 | 1.14% | 1.33% | (0.21)% | 50% | $45,855 | ||
2014 | $12.21 | (0.03) | 0.89 | 0.86 | (0.07) | (0.28) | (0.35) | $12.72 | 7.23% | 1.33% | (0.22)% | 46% | $54,091 | ||
2013 | $9.49 | (0.02) | 2.75 | 2.73 | (0.01) | — | (0.01) | $12.21 | 28.83% | 1.34% | (0.14)% | 64% | $51,351 | ||
2012 | $8.39 | —(5) | 1.10 | 1.10 | —(5) | — | —(5) | $9.49 | 13.16% | 1.35% | 0.03% | 54% | $33,938 | ||
C Class | |||||||||||||||
2017(3) | $9.42 | (0.02) | 1.47 | 1.45 | (0.01) | (0.13) | (0.14) | $10.73 | 15.57% | 2.08%(4) | (0.45)%(4) | 29% | $5,907 | ||
2016 | $10.63 | (0.07) | (0.37) | (0.44) | — | (0.77) | (0.77) | $9.42 | (4.23)% | 2.08% | (0.73)% | 57% | $6,872 | ||
2015 | $11.68 | (0.10) | 0.10 | —(5) | — | (1.05) | (1.05) | $10.63 | 0.40% | 2.08% | (0.96)% | 50% | $8,520 | ||
2014 | $11.30 | (0.11) | 0.81 | 0.70 | (0.04) | (0.28) | (0.32) | $11.68 | 6.39% | 2.08% | (0.97)% | 46% | $7,234 | ||
2013 | $8.84 | (0.09) | 2.55 | 2.46 | — | — | — | $11.30 | 27.97% | 2.09% | (0.89)% | 64% | $5,615 | ||
2012 | $7.87 | (0.06) | 1.03 | 0.97 | — | — | — | $8.84 | 12.20% | 2.10% | (0.72)% | 54% | $4,098 | ||
R Class | |||||||||||||||
2017(3) | $10.47 | —(5) | 1.64 | 1.64 | (0.02) | (0.13) | (0.15) | $11.96 | 15.86% | 1.58%(4) | 0.05%(4) | 29% | $7,817 | ||
2016 | $11.67 | (0.03) | (0.40) | (0.43) | — | (0.77) | (0.77) | $10.47 | (3.73)% | 1.58% | (0.23)% | 57% | $7,007 | ||
2015 | $12.66 | (0.05) | 0.11 | 0.06 | — | (1.05) | (1.05) | $11.67 | 0.89% | 1.58% | (0.46)% | 50% | $6,040 | ||
2014 | $12.18 | (0.06) | 0.88 | 0.82 | (0.06) | (0.28) | (0.34) | $12.66 | 7.00% | 1.58% | (0.47)% | 46% | $5,632 | ||
2013 | $9.47 | (0.04) | 2.75 | 2.71 | — | — | — | $12.18 | 28.51% | 1.59% | (0.39)% | 64% | $4,489 | ||
2012 | $8.39 | (0.02) | 1.10 | 1.08 | — | — | — | $9.47 | 12.87% | 1.60% | (0.22)% | 54% | $1,587 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
R5 Class | |||||||||||||||
2017(7) | $11.90 | 0.03 | 0.68 | 0.71 | — | — | — | $12.61 | 5.97% | 0.88%(4) | 1.81%(4) | 29%(8) | $5 | ||
R6 Class | |||||||||||||||
2017(3) | $11.05 | 0.05 | 1.73 | 1.78 | (0.04) | (0.13) | (0.17) | $12.66 | 16.33% | 0.73%(4) | 0.90%(4) | 29% | $18,669 | ||
2016 | $12.23 | 0.07 | (0.43) | (0.36) | (0.05) | (0.77) | (0.82) | $11.05 | (2.91)% | 0.73% | 0.62% | 57% | $16,508 | ||
2015 | $13.11 | 0.05 | 0.12 | 0.17 | — | (1.05) | (1.05) | $12.23 | 1.76% | 0.73% | 0.39% | 50% | $15,887 | ||
2014 | $12.53 | 0.02 | 0.93 | 0.95 | (0.09) | (0.28) | (0.37) | $13.11 | 7.80% | 0.73% | 0.38% | 46% | $16,992 | ||
2013(9) | $11.22 | —(5) | 1.31 | 1.31 | — | — | — | $12.53 | 11.68% | 0.74%(4) | 0.00%(4)(10) | 64%(11) | $28 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2017 (unaudited). |
(4) | Annualized. |
(5) | Per-share amount was less than $0.005. |
(6) | Prior to April 10, 2017, the I Class was referred to as the Institutional Class. |
(7) | April 10, 2017 (commencement of sale) through May 31, 2017 (unaudited). |
(8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the six months ended May 31, 2017. |
(9) | July 26, 2013 (commencement of sale) through November 30, 2013. |
(10) | Ratio was less than 0.005%. |
(11) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2013. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
Distributions you receive from 403(b), 457 and qualified plans are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on the "About Us" page of 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 fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s 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 fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
23
Notes |
24
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2017 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92631 1707 |
![acihorizblkb99.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/acihorizblkb99.jpg)
Semiannual Report | |
May 31, 2017 | |
Global Small Cap Fund |
Table of Contents |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2017. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, we encourage you to visit our website, americancentury.com.
“Risk-On” Sentiment Generally Prevailed Among Investors
Optimism surrounding President Trump’s aggressive pro-growth agenda, along with improving global economic data, upbeat corporate earnings reports in the U.S. and Europe, and continued accommodative central bank policies, triggered rallies among higher-risk assets during the six-month period. In addition, moderate candidate Emmanuel Macron’s victory in France’s presidential election helped ease political uncertainty in Europe, which further aided financial market performance. Global equity markets soared, including the S&P 500 Index, the MSCI EAFE Index, and the MSCI Emerging Markets Index, which gained 10.81%, 17.91%, and 17.51%, respectively. Within these indices, growth stocks significantly outperformed their value counterparts, as investors generally favored companies expected to perform well as economic fundamentals improve.
A similar pattern prevailed within the global fixed-income markets, where higher-risk and higher-yielding sectors were top performers. Meanwhile, yields on short-maturity U.S. Treasuries increased as the Federal Reserve (the Fed) raised its interest rate target twice during the reporting period. However, yields on longer-maturity U.S. Treasuries declined, largely due to waning U.S. economic growth and inflation expectations as the reporting period unfolded. Outside the U.S., ongoing central bank stimulus programs helped keep government bond yields low. Overall, returns among broad U.S. and global fixed-income indices were positive.
Late in the reporting period, investor optimism toward President Trump’s policy agenda faded as health care and tax reform remained stalled. Further delays to these and other pro-growth proposals, combined with the Fed’s efforts to normalize U.S. monetary policy, may impede future risk-on sentiment. Meanwhile, as the Fed continues to tighten, central banks in Europe, the U.K., and Japan remain extremely accommodative. In this environment, we continue to believe in a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2017 | |
Top Ten Holdings | % of net assets |
Melco International Development Ltd. | 1.6% |
Hostess Brands, Inc. | 1.5% |
Shopify, Inc., Class A | 1.4% |
Logitech International SA | 1.4% |
Square, Inc., Class A | 1.3% |
National Instruments Corp. | 1.3% |
Moncler SpA | 1.2% |
Rentokil Initial plc | 1.1% |
Ulvac, Inc. | 1.1% |
UDG Healthcare plc | 1.1% |
Types of Investments in Portfolio | % of net assets |
Foreign Common Stocks | 56.5% |
Domestic Common Stocks | 42.2% |
Total Common Stocks | 98.7% |
Temporary Cash Investments | 1.3% |
Other Assets and Liabilities | —* |
*Category is less than 0.05% of total net assets. | |
Investments by Country | % of net assets |
United States | 42.2% |
Japan | 8.7% |
United Kingdom | 7.7% |
Canada | 6.7% |
Sweden | 4.1% |
Italy | 4.0% |
France | 3.4% |
Switzerland | 3.2% |
Taiwan | 2.8% |
Germany | 2.4% |
South Korea | 2.2% |
Other Countries | 11.3% |
Cash and Equivalents** | 1.3% |
**Includes temporary cash investments and other assets and liabilities.
3
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2016 to May 31, 2017.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
4
Beginning Account Value 12/1/16 | Ending Account Value 5/31/17 | Expenses Paid During Period(1) 12/1/16 - 5/31/17 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,164.10 | $8.09 | 1.50% |
I Class | $1,000 | $1,165.70 | $7.02 | 1.30% |
A Class | $1,000 | $1,162.50 | $9.44 | 1.75% |
C Class | $1,000 | $1,157.70 | $13.45 | 2.50% |
R Class | $1,000 | $1,161.90 | $10.78 | 2.00% |
R6 Class | $1,000 | $1,165.40 | $6.21 | 1.15% |
Hypothetical | ||||
Investor Class | $1,000 | $1,017.45 | $7.54 | 1.50% |
I Class | $1,000 | $1,018.45 | $6.54 | 1.30% |
A Class | $1,000 | $1,016.21 | $8.80 | 1.75% |
C Class | $1,000 | $1,012.47 | $12.54 | 2.50% |
R Class | $1,000 | $1,014.96 | $10.05 | 2.00% |
R6 Class | $1,000 | $1,019.20 | $5.79 | 1.15% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. |
5
Schedule of Investments |
MAY 31, 2017 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 98.7% | |||||
Australia — 1.5% | |||||
BlueScope Steel Ltd. | 4,498 | $ | 38,436 | ||
Nanosonics Ltd.(1) | 19,255 | 40,347 | |||
Northern Star Resources Ltd. | 17,382 | 60,962 | |||
139,745 | |||||
Belgium — 0.5% | |||||
Galapagos NV(1) | 549 | 45,687 | |||
Brazil — 0.7% | |||||
CVC Brasil Operadora e Agencia de Viagens SA | 7,400 | 68,490 | |||
Canada — 6.7% | |||||
Alamos Gold, Inc., Class A | 6,433 | 43,288 | |||
Canadian Energy Services & Technology Corp. | 12,115 | 57,398 | |||
Descartes Systems Group, Inc. (The)(1) | 1,801 | 45,037 | |||
Enerflex Ltd. | 4,147 | 52,649 | |||
FirstService Corp. | 661 | 41,353 | |||
Hudbay Minerals, Inc. | 8,007 | 40,958 | |||
Interfor Corp.(1) | 4,231 | 55,219 | |||
Parex Resources, Inc.(1) | 4,865 | 58,379 | |||
Real Matters, Inc.(1) | 10,000 | 92,905 | |||
Shopify, Inc., Class A(1) | 1,389 | 128,242 | |||
615,428 | |||||
China — 1.2% | |||||
Lonking Holdings Ltd. | 148,000 | 41,024 | |||
Q Technology Group Co. Ltd.(1) | 57,000 | 43,156 | |||
Tongda Group Holdings Ltd. | 80,000 | 22,791 | |||
106,971 | |||||
France — 3.4% | |||||
Alten SA | 611 | 54,443 | |||
Maisons du Monde SA(1) | 2,146 | 81,024 | |||
SOITEC(1) | 1,011 | 55,774 | |||
Tarkett SA | 1,450 | 72,354 | |||
X-Fab Silicon Foundries SE(1) | 4,719 | 48,240 | |||
311,835 | |||||
Germany — 2.4% | |||||
CTS Eventim AG & Co. KGaA | 1,553 | 67,698 | |||
MorphoSys AG(1) | 731 | 53,532 | |||
Stabilus SA | 1,180 | 95,652 | |||
216,882 | |||||
Hong Kong — 1.6% | |||||
Melco International Development Ltd. | 56,000 | 147,320 | |||
India — 1.1% | |||||
Indiabulls Housing Finance Ltd., ADR | 2,630 | 47,309 | |||
Vakrangee Ltd. | 9,791 | 55,374 | |||
102,683 | |||||
Italy — 4.0% | |||||
Amplifon SpA | 4,335 | 61,748 |
6
Shares | Value | ||||
Banca Generali SpA | 2,858 | $ | 82,479 | ||
Davide Campari-Milano SpA | 10,308 | 72,082 | |||
Moncler SpA | 4,486 | 109,253 | |||
Salvatore Ferragamo SpA | 1,520 | 42,431 | |||
367,993 | |||||
Japan — 8.7% | |||||
Cosmos Pharmaceutical Corp. | 400 | 84,406 | |||
Daifuku Co. Ltd. | 2,200 | 67,043 | |||
DMG Mori Co. Ltd. | 3,900 | 61,344 | |||
Itochu Techno-Solutions Corp. | 2,100 | 71,580 | |||
Nachi-Fujikoshi Corp. | 8,000 | 40,379 | |||
Pigeon Corp. | 2,500 | 86,230 | |||
Sakata Seed Corp. | 1,800 | 57,454 | |||
SMS Co. Ltd. | 1,600 | 44,208 | |||
Topcon Corp. | 2,400 | 43,839 | |||
Toyo Tire & Rubber Co. Ltd. | 4,300 | 82,778 | |||
Ulvac, Inc. | 1,900 | 105,336 | |||
Vector, Inc. | 4,200 | 61,625 | |||
806,222 | |||||
Netherlands — 1.6% | |||||
ASR Nederland NV(1) | 2,847 | 91,372 | |||
OCI NV(1) | 2,467 | 58,959 | |||
150,331 | |||||
New Zealand — 1.4% | |||||
a2 Milk Co. Ltd.(1) | 35,278 | 83,358 | |||
Fisher & Paykel Healthcare Corp. Ltd. | 5,728 | 43,424 | |||
126,782 | |||||
Norway — 0.5% | |||||
Asetek A/S | 3,773 | 49,343 | |||
South Africa — 0.8% | |||||
Dis-Chem Pharmacies Ltd. | 31,623 | 69,515 | |||
South Korea — 2.2% | |||||
CJ CGV Co. Ltd. | 1,043 | 78,719 | |||
HS Industries Co. Ltd. | 5,156 | 44,302 | |||
Korea Kolmar Co. Ltd. | 1,107 | 84,439 | |||
207,460 | |||||
Sweden — 4.1% | |||||
Ambea AB(1) | 4,210 | 44,442 | |||
Munters Group AB(1) | 1,411 | 11,648 | |||
RaySearch Laboratories AB(1) | 1,885 | 51,835 | |||
Saab AB, B Shares | 1,749 | 90,998 | |||
Scandic Hotels Group AB | 6,594 | 84,593 | |||
Vitrolife AB | 1,449 | 90,694 | |||
374,210 | |||||
Switzerland — 3.2% | |||||
Logitech International SA | 3,424 | 125,145 | |||
Straumann Holding AG | 143 | 79,211 | |||
Temenos Group AG | 928 | 86,328 | |||
290,684 | |||||
Taiwan — 2.8% | |||||
Advanced Ceramic X Corp. | 4,000 | 42,289 |
7
Shares | Value | ||||
Airtac International Group | 6,000 | $ | 66,225 | ||
Merry Electronics Co. Ltd. | 13,000 | 72,825 | |||
Silergy Corp. | 4,000 | 78,992 | |||
260,331 | |||||
Thailand — 0.4% | |||||
Taokaenoi Food & Marketing PCL | 51,500 | 34,777 | |||
United Kingdom — 7.7% | |||||
Ashmore Group plc | 9,671 | 43,699 | |||
ASOS plc(1) | 1,080 | 89,294 | |||
BBA Aviation plc | 16,147 | 67,053 | |||
Bellway plc | 2,227 | 81,089 | |||
CVS Group plc | 2,567 | 46,536 | |||
Jimmy Choo plc(1) | 21,899 | 55,726 | |||
NEX Group plc | 7,829 | 65,013 | |||
Rentokil Initial plc | 30,924 | 105,826 | |||
Spectris plc | 1,694 | 57,032 | |||
UDG Healthcare plc | 9,612 | 101,120 | |||
712,388 | |||||
United States — 42.2% | |||||
2U, Inc.(1) | 1,491 | 63,740 | |||
AAR Corp. | 1,531 | 53,493 | |||
ABIOMED, Inc.(1) | 446 | 61,294 | |||
Almost Family, Inc.(1) | 1,615 | 92,701 | |||
American Homes 4 Rent, Class A | 2,212 | 49,704 | |||
BMC Stock Holdings, Inc.(1) | 2,764 | 53,898 | |||
Burlington Stores, Inc.(1) | 826 | 80,824 | |||
BWX Technologies, Inc. | 1,547 | 75,184 | |||
Callon Petroleum Co.(1) | 5,831 | 66,007 | |||
Catalent, Inc.(1) | 1,331 | 47,290 | |||
Collegium Pharmaceutical, Inc.(1) | 2,755 | 22,646 | |||
Copart, Inc.(1) | 2,639 | 82,310 | |||
Essent Group Ltd.(1) | 1,824 | 66,157 | |||
Euronet Worldwide, Inc.(1) | 777 | 67,778 | |||
Evolent Health, Inc., Class A(1) | 3,499 | 80,302 | |||
Fair Isaac Corp. | 303 | 40,196 | |||
FCB Financial Holdings, Inc., Class A(1) | 1,933 | 88,531 | |||
First Industrial Realty Trust, Inc. | 2,774 | 80,113 | |||
Flexion Therapeutics, Inc.(1) | 2,583 | 44,143 | |||
Granite Construction, Inc. | 829 | 38,847 | |||
HealthEquity, Inc.(1) | 2,049 | 93,844 | |||
HEICO Corp. | 982 | 72,874 | |||
Home BancShares, Inc. | 2,978 | 69,715 | |||
Hostess Brands, Inc.(1) | 8,939 | 140,700 | |||
James River Group Holdings Ltd. | 1,674 | 66,357 | |||
John Bean Technologies Corp. | 433 | 37,368 | |||
Kennametal, Inc. | 2,310 | 88,866 | |||
Kinsale Capital Group, Inc. | 1,840 | 66,682 | |||
Lincoln Electric Holdings, Inc. | 996 | 89,023 | |||
Malibu Boats, Inc., Class A(1) | 2,601 | 63,074 | |||
MarketAxess Holdings, Inc. | 444 | 84,618 | |||
Medpace Holdings, Inc.(1) | 1,684 | 46,849 |
8
Shares | Value | ||||
MGP Ingredients, Inc. | 1,399 | $ | 71,643 | ||
Monolithic Power Systems, Inc. | 923 | 90,639 | |||
MRC Global, Inc.(1) | 3,980 | 71,839 | |||
National Instruments Corp. | 3,022 | 115,289 | |||
Nutrisystem, Inc. | 1,699 | 88,433 | |||
Ollie's Bargain Outlet Holdings, Inc.(1) | 1,683 | 69,255 | |||
ON Semiconductor Corp.(1) | 2,852 | 44,149 | |||
Paycom Software, Inc.(1) | 701 | 45,873 | |||
RenaissanceRe Holdings Ltd. | 512 | 73,144 | |||
RH(1) | 1,491 | 83,660 | |||
RSP Permian, Inc.(1) | 1,528 | 54,382 | |||
Sensient Technologies Corp. | 651 | 52,269 | |||
SiteOne Landscape Supply, Inc.(1) | 1,669 | 88,757 | |||
Six Flags Entertainment Corp. | 1,188 | 71,731 | |||
Square, Inc., Class A(1) | 5,240 | 120,468 | |||
Summit Materials, Inc., Class A(1) | 2,251 | 60,462 | |||
SVB Financial Group(1) | 391 | 66,666 | |||
Trupanion, Inc.(1) | 4,211 | 85,652 | |||
Vail Resorts, Inc. | 261 | 55,828 | |||
Varex Imaging Corp.(1) | 1,654 | 56,815 | |||
Vocera Communications, Inc.(1) | 3,006 | 80,350 | |||
Western Alliance Bancorp(1) | 1,814 | 82,936 | |||
XPO Logistics, Inc.(1) | 1,504 | 79,110 | |||
3,884,478 | |||||
TOTAL COMMON STOCKS (Cost $7,662,654) | 9,089,555 | ||||
TEMPORARY CASH INVESTMENTS — 1.3% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.875% - 2.125%, 9/30/17 - 2/15/26, valued at $66,217), in a joint trading account at 0.70%, dated 5/31/17, due 6/1/17 (Delivery value $64,921) | 64,920 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 54,153 | 54,153 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $119,073) | 119,073 | ||||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $7,781,727) | 9,208,628 | ||||
OTHER ASSETS AND LIABILITIES† | 420 | ||||
TOTAL NET ASSETS — 100.0% | $ | 9,209,048 |
9
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Information Technology | 20.2 | % |
Consumer Discretionary | 17.9 | % |
Industrials | 16.9 | % |
Health Care | 14.1 | % |
Financials | 11.7 | % |
Consumer Staples | 8.5 | % |
Materials | 4.4 | % |
Energy | 3.1 | % |
Real Estate | 1.9 | % |
Cash and Equivalents* | 1.3 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
† | Category is less than 0.05% of total net assets. |
(1) | Non-income producing. |
See Notes to Financial Statements.
10
Statement of Assets and Liabilities |
MAY 31, 2017 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $7,781,727) | $ | 9,208,628 | |
Foreign currency holdings, at value (cost of $2,606) | 2,597 | ||
Receivable for capital shares sold | 1,859 | ||
Dividends and interest receivable | 10,602 | ||
9,223,686 | |||
Liabilities | |||
Accrued management fees | 10,896 | ||
Distribution and service fees payable | 1,423 | ||
Accrued foreign taxes | 2,319 | ||
14,638 | |||
Net Assets | $ | 9,209,048 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 7,711,288 | |
Accumulated net investment loss | (27,400 | ) | |
Undistributed net realized gain | 100,581 | ||
Net unrealized appreciation | 1,424,579 | ||
$ | 9,209,048 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $5,360,006 | 424,439 | $12.63 | |||
I Class, $0.01 Par Value | $759,517 | 60,000 | $12.66 | |||
A Class, $0.01 Par Value | $1,259,212 | 100,000 | $12.59* | |||
C Class, $0.01 Par Value | $1,258,647 | 100,836 | $12.48 | |||
R Class, $0.01 Par Value | $259,113 | 20,638 | $12.56 | |||
R6 Class, $0.01 Par Value | $312,553 | 24,646 | $12.68 |
*Maximum offering price $13.36 (net asset value divided by 0.9425).
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $3,041) | $ | 48,360 | |
Interest | 252 | ||
48,612 | |||
Expenses: | |||
Management fees | 51,534 | ||
Distribution and service fees: | |||
A Class | 1,446 | ||
C Class | 5,785 | ||
R Class | 586 | ||
Directors' fees and expenses | 96 | ||
59,447 | |||
Net investment income (loss) | (10,835 | ) | |
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 245,824 | ||
Foreign currency transactions | 886 | ||
246,710 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $(2,319)) | 836,227 | ||
Translation of assets and liabilities in foreign currencies | 285 | ||
836,512 | |||
Net realized and unrealized gain (loss) | 1,083,222 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,072,387 |
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) AND PERIOD ENDED NOVEMBER 30, 2016 | ||||||
Increase (Decrease) in Net Assets | May 31, 2017 | November 30, 2016(1) | ||||
Operations | ||||||
Net investment income (loss) | $ | (10,835 | ) | $ | (22,670 | ) |
Net realized gain (loss) | 246,710 | (143,383 | ) | |||
Change in net unrealized appreciation (depreciation) | 836,512 | 588,067 | ||||
Net increase (decrease) in net assets resulting from operations | 1,072,387 | 422,014 | ||||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 2,531,571 | 5,183,076 | ||||
Net increase (decrease) in net assets | 3,603,958 | 5,605,090 | ||||
Net Assets | ||||||
Beginning of period | 5,605,090 | — | ||||
End of period | $ | 9,209,048 | $ | 5,605,090 | ||
Accumulated net investment loss | $ | (27,400 | ) | $ | (16,565 | ) |
(1) | March 29, 2016 (fund inception) through November 30, 2016. |
See Notes to Financial Statements.
13
Notes to Financial Statements |
MAY 31, 2017 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Global Small Cap Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital growth.
The fund offers the Investor Class, I Class (formerly Institutional Class), A Class, C Class, R Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge. All classes of the fund commenced sale on March 29, 2016, the fund’s inception date.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. If significant fluctuations in foreign markets are identified, the
14
fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund 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.
15
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. ACIM owns 68% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class.
The annual management fee for each class is as follows:
Investor Class | I Class | A Class | C Class | R Class | R6 Class |
1.50% | 1.30% | 1.50% | 1.50% | 1.50% | 1.15% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans),pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2017 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Acquired Fund Fees and Expenses — The fund may invest in mutual funds, exchange-traded funds, and business development companies (the acquired funds). The 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.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2017 were $7,320,817 and $4,893,288, respectively.
16
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2017 | Period ended November 30, 2016(1) | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 248,391 | $ | 2,950,727 | 222,420 | $ | 2,237,196 | ||||
Redeemed | (41,241 | ) | (491,156 | ) | (5,131 | ) | (55,668 | ) | ||
207,150 | 2,459,571 | 217,289 | 2,181,528 | |||||||
I Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | — | — | 60,000 | 600,000 | ||||||
A Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | — | — | 100,000 | 1,000,000 | ||||||
C Class/Shares Authorized | 40,000,000 | 50,000,000 | ||||||||
Sold | 836 | 8,999 | 100,000 | 1,000,000 | ||||||
R Class/Shares Authorized | 30,000,000 | 50,000,000 | ||||||||
Sold | 567 | 6,674 | 20,190 | 202,067 | ||||||
Redeemed | (71 | ) | (825 | ) | (48 | ) | (519 | ) | ||
496 | 5,849 | 20,142 | 201,548 | |||||||
R6 Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 4,646 | 57,152 | 20,000 | 200,000 | ||||||
Net increase (decrease) | 213,128 | $ | 2,531,571 | 517,431 | $ | 5,183,076 |
(1) | March 29, 2016 (fund inception) through November 30, 2016. |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
17
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | ||||||||
United States | $ | 3,884,478 | — | — | ||||
Other Countries | — | $ | 5,205,077 | — | ||||
Temporary Cash Investments | 54,153 | 64,920 | — | |||||
$ | 3,938,631 | $ | 5,269,997 | — |
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.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
The fund’s investment process may result in high portfolio turnover, which could mean high transaction costs, affecting both performance and capital gains tax liabilities to investors.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 7,796,747 | |
Gross tax appreciation of investments | $ | 1,508,630 | |
Gross tax depreciation of investments | (96,749 | ) | |
Net tax appreciation (depreciation) of investments | $ | 1,411,881 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2016, the fund had accumulated short-term capital losses of $(140,579), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
As of November 30, 2016, the fund had late-year ordinary loss deferrals of $(16,565), which represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
9. Recently Issued Accounting Guidance
In October 2016, the Securities and Exchange Commission adopted new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other provisions. Compliance with the amendments is effective on August 1, 2017. Management is currently evaluating the impact that adopting the amendments will have on the financial statement disclosures.
18
Financial Highlights |
For a Share Outstanding Throughout the Periods Indicated | ||||||||||||
Per-Share Data | Ratios and Supplemental Data | |||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | |||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | ||||||||||||
2017(3) | $10.85 | (0.01) | 1.79 | 1.78 | $12.63 | 16.41% | 1.50%(4) | (0.12)%(4) | 70% | $5,360 | ||
2016(5) | $10.00 | (0.03) | 0.88 | 0.85 | $10.85 | 8.50% | 1.50%(4) | (0.40)%(4) | 95% | $2,357 | ||
I Class(6) | ||||||||||||
2017(3) | $10.86 | —(7) | 1.80 | 1.80 | $12.66 | 16.57% | 1.30%(4) | 0.08%(4) | 70% | $760 | ||
2016(5) | $10.00 | (0.01) | 0.87 | 0.86 | $10.86 | 8.60% | 1.30%(4) | (0.20)%(4) | 95% | $652 | ||
A Class | ||||||||||||
2017(3) | $10.83 | (0.02) | 1.78 | 1.76 | $12.59 | 16.25% | 1.75%(4) | (0.37)%(4) | 70% | $1,259 | ||
2016(5) | $10.00 | (0.05) | 0.88 | 0.83 | $10.83 | 8.30% | 1.75%(4) | (0.65)%(4) | 95% | $1,083 | ||
C Class | ||||||||||||
2017(3) | $10.78 | (0.06) | 1.76 | 1.70 | $12.48 | 15.77% | 2.50%(4) | (1.12)%(4) | 70% | $1,259 | ||
2016(5) | $10.00 | (0.10) | 0.88 | 0.78 | $10.78 | 7.80% | 2.50%(4) | (1.40)%(4) | 95% | $1,078 | ||
R Class | ||||||||||||
2017(3) | $10.81 | (0.04) | 1.79 | 1.75 | $12.56 | 16.19% | 2.00%(4) | (0.62)%(4) | 70% | $259 | ||
2016(5) | $10.00 | (0.06) | 0.87 | 0.81 | $10.81 | 8.10% | 2.00%(4) | (0.90)%(4) | 95% | $218 | ||
R6 Class | ||||||||||||
2017(3) | $10.87 | 0.02 | 1.79 | 1.81 | $12.68 | 16.54% | 1.15%(4) | 0.23%(4) | 70% | $313 | ||
2016(5) | $10.00 | —(7) | 0.87 | 0.87 | $10.87 | 8.80% | 1.15%(4) | (0.05)%(4) | 95% | $217 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2017 (unaudited). |
(4) | Annualized. |
(5) | March 29, 2016 (fund inception) through November 30, 2016. |
(6) | Prior to April 10, 2017, the I Class was referred to as the Institutional Class. |
(7) | Per-share amount was less than $0.005. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
Distributions you receive from 403(b), 457 and qualified plans are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on the "About Us" page of 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 fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s 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 fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
21
Notes |
22
Notes |
23
Notes |
24
![]() | ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2017 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92638 1707 |
![acihorizblkb99.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/acihorizblkb99.jpg)
Semiannual Report | |
May 31, 2017 | |
International Discovery Fund |
Table of Contents |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2017. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, we encourage you to visit our website, americancentury.com.
“Risk-On” Sentiment Generally Prevailed Among Investors
Optimism surrounding President Trump’s aggressive pro-growth agenda, along with improving global economic data, upbeat corporate earnings reports in the U.S. and Europe, and continued accommodative central bank policies, triggered rallies among higher-risk assets during the six-month period. In addition, moderate candidate Emmanuel Macron’s victory in France’s presidential election helped ease political uncertainty in Europe, which further aided financial market performance. Global equity markets soared, including the S&P 500 Index, the MSCI EAFE Index, and the MSCI Emerging Markets Index, which gained 10.81%, 17.91%, and 17.51%, respectively. Within these indices, growth stocks significantly outperformed their value counterparts, as investors generally favored companies expected to perform well as economic fundamentals improve.
A similar pattern prevailed within the global fixed-income markets, where higher-risk and higher-yielding sectors were top performers. Meanwhile, yields on short-maturity U.S. Treasuries increased as the Federal Reserve (the Fed) raised its interest rate target twice during the reporting period. However, yields on longer-maturity U.S. Treasuries declined, largely due to waning U.S. economic growth and inflation expectations as the reporting period unfolded. Outside the U.S., ongoing central bank stimulus programs helped keep government bond yields low. Overall, returns among broad U.S. and global fixed-income indices were positive.
Late in the reporting period, investor optimism toward President Trump’s policy agenda faded as health care and tax reform remained stalled. Further delays to these and other pro-growth proposals, combined with the Fed’s efforts to normalize U.S. monetary policy, may impede future risk-on sentiment. Meanwhile, as the Fed continues to tighten, central banks in Europe, the U.K., and Japan remain extremely accommodative. In this environment, we continue to believe in a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2017 | |
Top Ten Holdings | % of net assets |
DSV A/S | 3.0% |
Treasury Wine Estates Ltd. | 2.3% |
Lonza Group AG | 2.0% |
Melrose Industries plc | 2.0% |
Challenger Ltd. | 1.9% |
X5 Retail Group NV GDR | 1.8% |
Logitech International SA | 1.8% |
ASM Pacific Technology Ltd. | 1.8% |
RPC Group plc | 1.7% |
Teleperformance | 1.7% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 99.3% |
Temporary Cash Investments | 0.6% |
Other Assets and Liabilities | 0.1% |
Investments by Country | % of net assets |
Japan | 15.5% |
United Kingdom | 11.8% |
France | 8.0% |
China | 7.6% |
Canada | 7.0% |
Switzerland | 5.7% |
South Korea | 5.3% |
Italy | 4.7% |
Denmark | 4.5% |
Australia | 4.4% |
Germany | 3.8% |
Finland | 3.6% |
India | 2.7% |
Hong Kong | 2.5% |
Russia | 2.4% |
Other Countries | 9.8% |
Cash and Equivalents* | 0.7% |
*Includes temporary cash investments and other assets and liabilities.
3
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2016 to May 31, 2017 (except as noted).
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
4
Beginning Account Value 12/1/16 | Ending Account Value 5/31/17 | Expenses Paid During Period(1) 12/1/16 - 5/31/17 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,186.80 | $9.05 | 1.66% |
I Class | $1,000 | $1,188.60 | $7.97 | 1.46% |
Y Class | $1,000 | $1,074.20(2) | $1.94(3) | 1.31% |
A Class | $1,000 | $1,185.10 | $10.41 | 1.91% |
C Class | $1,000 | $1,181.70 | $14.47 | 2.66% |
R Class | $1,000 | $1,183.50 | $11.76 | 2.16% |
Hypothetical | ||||
Investor Class | $1,000 | $1,016.65 | $8.35 | 1.66% |
I Class | $1,000 | $1,017.65 | $7.34 | 1.46% |
Y Class | $1,000 | $1,018.40(4) | $6.59(4) | 1.31% |
A Class | $1,000 | $1,015.41 | $9.60 | 1.91% |
C Class | $1,000 | $1,011.67 | $13.34 | 2.66% |
R Class | $1,000 | $1,014.16 | $10.85 | 2.16% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. |
(2) | Ending account value based on actual return from April 10, 2017 (commencement of sale) through May 31, 2017. |
(3) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 52, the number of days in the period from April 10, 2017 (commencement of sale) through May 31, 2017, divided by 365, to reflect the period. Had the class been available for the full period, the expenses paid during the period would have been higher. |
(4) | Ending account value and expenses paid during the period assumes the class had been available throughout the entire period and are calculated using the class's annualized expense ratio listed in the table above. |
5
Schedule of Investments |
MAY 31, 2017 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 99.3% | |||||
Australia — 4.4% | |||||
Challenger Ltd. | 976,120 | $ | 9,276,666 | ||
Fortescue Metals Group Ltd. | 298,890 | 1,077,138 | |||
Treasury Wine Estates Ltd. | 1,174,270 | 11,360,492 | |||
21,714,296 | |||||
Austria — 1.1% | |||||
Wienerberger AG | 219,510 | 5,174,616 | |||
Belgium — 0.9% | |||||
Galapagos NV(1) | 52,240 | 4,347,294 | |||
Brazil — 0.5% | |||||
Smiles SA | 128,200 | 2,489,955 | |||
Canada — 7.0% | |||||
CCL Industries, Inc., Class B | 31,590 | 7,464,112 | |||
Dollarama, Inc. | 54,642 | 5,061,519 | |||
Lundin Mining Corp. | 502,860 | 2,769,574 | |||
Premium Brands Holdings Corp. | 40,010 | 2,734,666 | |||
Seven Generations Energy Ltd., Class A(1) | 189,410 | 3,397,420 | |||
Shopify, Inc., Class A(1) | 13,890 | 1,275,935 | |||
Sleep Country Canada Holdings, Inc. | 118,720 | 3,427,531 | |||
Teck Resources Ltd., Class B | 270,570 | 4,832,380 | |||
Trican Well Service Ltd.(1) | 1,105,290 | 3,281,055 | |||
34,244,192 | |||||
China — 7.6% | |||||
Beijing Enterprises Water Group Ltd. | 3,852,000 | 3,084,546 | |||
Brilliance China Automotive Holdings Ltd. | 4,046,000 | 7,549,369 | |||
China Lodging Group Ltd. ADR(1) | 55,543 | 4,243,485 | |||
Haier Electronics Group Co. Ltd. | 2,195,000 | 5,582,884 | |||
Momo, Inc. ADR(1) | 127,130 | 4,836,025 | |||
Shenzhou International Group Holdings Ltd. | 376,000 | 2,574,202 | |||
Sunny Optical Technology Group Co. Ltd. | 445,000 | 3,466,324 | |||
Weibo Corp. ADR(1) | 82,430 | 6,061,078 | |||
37,397,913 | |||||
Denmark — 4.5% | |||||
DSV A/S | 240,780 | 14,658,182 | |||
Genmab A/S(1) | 35,780 | 7,635,358 | |||
22,293,540 | |||||
Finland — 3.6% | |||||
Cargotec Oyj, B Shares | 110,900 | 6,602,710 | |||
Konecranes Oyj, Class B | 84,735 | 3,496,219 | |||
Nokian Renkaat Oyj | 183,110 | 7,483,239 | |||
17,582,168 | |||||
France — 8.0% | |||||
Arkema SA | 76,410 | 7,984,383 | |||
BioMerieux | 32,200 | 6,782,222 | |||
Eiffage SA | 24,300 | 2,209,724 | |||
Nexans SA | 83,600 | 4,572,106 |
6
Shares | Value | ||||
SEB SA | 25,130 | $ | 4,409,490 | ||
Teleperformance | 64,100 | 8,385,180 | |||
Thales SA | 42,680 | 4,713,908 | |||
39,057,013 | |||||
Germany — 3.8% | |||||
AURELIUS Equity Opportunities SE & Co. KGaA | 42,782 | 2,492,346 | |||
Dialog Semiconductor plc(1) | 68,890 | 3,288,583 | |||
Drillisch AG | 62,960 | 3,978,342 | |||
KION Group AG | 86,571 | 6,404,851 | |||
Salzgitter AG | 61,950 | 2,359,152 | |||
18,523,274 | |||||
Hong Kong — 2.5% | |||||
ASM Pacific Technology Ltd. | 602,000 | 8,636,916 | |||
Samsonite International SA | 942,000 | 3,801,824 | |||
12,438,740 | |||||
India — 2.7% | |||||
Dalmia Bharat Ltd.(1) | 90,660 | 3,416,401 | |||
Vakrangee Ltd. | 1,073,700 | 6,072,429 | |||
Yes Bank Ltd. | 178,250 | 3,954,404 | |||
13,443,234 | |||||
Indonesia — 1.5% | |||||
United Tractors Tbk PT | 3,631,000 | 7,571,398 | |||
Ireland — 0.5% | |||||
Glanbia plc | 121,230 | 2,464,924 | |||
Italy — 4.7% | |||||
Buzzi Unicem SpA | 174,360 | 4,526,491 | |||
Davide Campari-Milano SpA | 393,200 | 2,749,589 | |||
Ferrari NV | 77,850 | 6,733,862 | |||
FinecoBank Banca Fineco SpA | 301,560 | 2,266,286 | |||
Industria Macchine Automatiche SpA | 31,750 | 2,837,257 | |||
Salvatore Ferragamo SpA | 141,109 | 3,939,090 | |||
23,052,575 | |||||
Japan — 15.5% | |||||
Ain Holdings, Inc. | 31,300 | 2,518,131 | |||
Alps Electric Co. Ltd. | 141,100 | 3,962,266 | |||
Calbee, Inc. | 27,300 | 1,057,490 | |||
CyberAgent, Inc. | 129,100 | 4,662,754 | |||
Disco Corp. | 22,400 | 3,863,115 | |||
Don Quijote Holdings Co. Ltd. | 125,600 | 4,910,592 | |||
eRex Co. Ltd. | 126,800 | 1,199,877 | |||
GMO Payment Gateway, Inc. | 54,100 | 3,150,745 | |||
LIXIL Group Corp. | 164,800 | 4,007,281 | |||
Mabuchi Motor Co. Ltd. | 74,600 | 4,203,196 | |||
NGK Spark Plug Co. Ltd. | 210,700 | 4,282,489 | |||
Nippon Shinyaku Co. Ltd. | 63,000 | 3,674,763 | |||
Nitori Holdings Co. Ltd. | 41,300 | 6,037,445 | |||
Omron Corp. | 66,100 | 2,763,368 | |||
Seria Co. Ltd. | 105,000 | 5,081,716 | |||
Start Today Co. Ltd. | 129,300 | 3,226,954 | |||
Sumco Corp. | 438,000 | 7,241,336 |
7
Shares | Value | ||||
Taiyo Nippon Sanso Corp. | 300,700 | $ | 3,051,800 | ||
Temp Holdings Co. Ltd. | 210,300 | 4,152,832 | |||
Topcon Corp. | 165,300 | 3,019,430 | |||
76,067,580 | |||||
Russia — 2.4% | |||||
X5 Retail Group NV GDR(1) | 243,230 | 8,804,926 | |||
Yandex NV, A Shares(1) | 103,370 | 2,737,238 | |||
11,542,164 | |||||
South Africa — 0.6% | |||||
Capitec Bank Holdings Ltd. | 52,510 | 3,118,089 | |||
South Korea — 5.3% | |||||
BGF retail Co. Ltd. | 64,850 | 8,080,185 | |||
CJ CGV Co. Ltd. | 32,270 | 2,435,526 | |||
Hanssem Co. Ltd. | 18,500 | 3,635,227 | |||
Hugel, Inc.(1) | 3,560 | 1,486,513 | |||
Medy-Tox, Inc. | 9,566 | 4,460,032 | |||
Samsung SDI Co. Ltd. | 40,860 | 6,039,952 | |||
26,137,435 | |||||
Spain — 0.5% | |||||
Bankia SA | 2,318,190 | 2,666,637 | |||
Sweden — 1.6% | |||||
Intrum Justitia AB | 78,411 | 2,654,177 | |||
Lundin Petroleum AB(1) | 155,940 | 3,028,588 | |||
SSAB AB, A Shares(1) | 504,160 | 2,057,500 | |||
7,740,265 | |||||
Switzerland — 5.7% | |||||
Logitech International SA | 237,630 | 8,685,253 | |||
Lonza Group AG | 47,360 | 9,808,906 | |||
Partners Group Holding AG | 9,190 | 5,631,372 | |||
Sika AG | 620 | 3,994,425 | |||
28,119,956 | |||||
Taiwan — 1.6% | |||||
Airtac International Group | 544,000 | 6,004,455 | |||
Merry Electronics Co. Ltd. | 304,000 | 1,702,982 | |||
7,707,437 | |||||
Turkey — 1.0% | |||||
Turk Hava Yollari AO(1) | 2,482,570 | 5,094,761 | |||
United Kingdom — 11.8% | |||||
Ashtead Group plc | 363,740 | 7,339,232 | |||
ASOS plc(1) | 56,040 | 4,633,380 | |||
B&M European Value Retail SA | 763,310 | 3,582,844 | |||
DCC plc | 76,590 | 7,277,829 | |||
easyJet plc | 268,000 | 4,882,609 | |||
Just Eat plc(1) | 348,920 | 3,018,837 | |||
Melrose Industries plc | 3,140,090 | 9,679,698 | |||
NEX Group plc | 468,710 | 3,892,198 | |||
RPC Group plc | 775,340 | 8,571,311 | |||
Segro plc | 371,660 | 2,408,694 |
8
Shares | Value | ||||
Tullow Oil plc(1) | 1,071,710 | $ | 2,524,185 | ||
57,810,817 | |||||
TOTAL COMMON STOCKS (Cost $405,418,487) | 487,800,273 | ||||
TEMPORARY CASH INVESTMENTS — 0.6% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.875% - 2.125%, 9/30/17 - 2/15/26, valued at $1,532,699), in a joint trading account at 0.70%, dated 5/31/17, due 6/1/17 (Delivery value $1,502,689) | 1,502,660 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 1.00%, 2/15/46, valued at $1,278,756), at 0.22%, dated 5/31/17, due 6/1/17 (Delivery value $1,252,008) | 1,252,000 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 1,319 | 1,319 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $2,755,979) | 2,755,979 | ||||
TOTAL INVESTMENT SECURITIES — 99.9% (Cost $408,174,466) | 490,556,252 | ||||
OTHER ASSETS AND LIABILITIES — 0.1% | 625,195 | ||||
TOTAL NET ASSETS — 100.0% | $ | 491,181,447 |
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Industrials | 22.4 | % |
Consumer Discretionary | 20.3 | % |
Information Technology | 16.3 | % |
Materials | 11.7 | % |
Consumer Staples | 8.0 | % |
Health Care | 7.8 | % |
Financials | 6.7 | % |
Energy | 4.0 | % |
Utilities | 0.8 | % |
Telecommunication Services | 0.8 | % |
Real Estate | 0.5 | % |
Cash and Equivalents* | 0.7 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
GDR | - | Global Depositary Receipt |
(1) | Non-income producing. |
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2017 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $408,174,466) | $ | 490,556,252 | |
Foreign currency holdings, at value (cost of $310,034) | 310,959 | ||
Receivable for investments sold | 4,468,184 | ||
Receivable for capital shares sold | 28,314 | ||
Dividends and interest receivable | 940,000 | ||
Other assets | 117,262 | ||
496,420,971 | |||
Liabilities | |||
Payable for investments purchased | 4,027,052 | ||
Payable for capital shares redeemed | 534,754 | ||
Accrued management fees | 675,750 | ||
Distribution and service fees payable | 1,968 | ||
5,239,524 | |||
Net Assets | $ | 491,181,447 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 517,798,811 | |
Accumulated net investment loss | (895,009 | ) | |
Accumulated net realized loss | (108,045,278 | ) | |
Net unrealized appreciation | 82,322,923 | ||
$ | 491,181,447 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $463,264,935 | 32,122,446 | $14.42 | |||
I Class, $0.01 Par Value | $21,673,557 | 1,482,839 | $14.62 | |||
Y Class, $0.01 Par Value | $5,367 | 367 | $14.62 | |||
A Class, $0.01 Par Value | $5,150,763 | 367,309 | $14.02* | |||
C Class, $0.01 Par Value | $996,947 | 72,317 | $13.79 | |||
R Class, $0.01 Par Value | $89,878 | 6,333 | $14.19 |
*Maximum offering price $14.88 (net asset value divided by 0.9425).
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $269,404) | $ | 3,750,992 | |
Interest | 8,531 | ||
3,759,523 | |||
Expenses: | |||
Management fees | 3,768,717 | ||
Distribution and service fees: | |||
A Class | 6,595 | ||
C Class | 4,539 | ||
R Class | 400 | ||
Directors' fees and expenses | 6,465 | ||
Other expenses | 6,984 | ||
3,793,700 | |||
Net investment income (loss) | (34,177 | ) | |
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 24,662,838 | ||
Foreign currency transactions | (183,176 | ) | |
24,479,662 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | 54,559,688 | ||
Translation of assets and liabilities in foreign currencies | 61,333 | ||
54,621,021 | |||
Net realized and unrealized gain (loss) | 79,100,683 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 79,066,506 |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2016 | ||||||
Increase (Decrease) in Net Assets | May 31, 2017 | November 30, 2016 | ||||
Operations | ||||||
Net investment income (loss) | $ | (34,177 | ) | $ | (1,228,563 | ) |
Net realized gain (loss) | 24,479,662 | (16,140,832 | ) | |||
Change in net unrealized appreciation (depreciation) | 54,621,021 | (9,168,454 | ) | |||
Net increase (decrease) in net assets resulting from operations | 79,066,506 | (26,537,849 | ) | |||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | — | (2,556,611 | ) | |||
I Class | — | (154,815 | ) | |||
A Class | — | (18,092 | ) | |||
R Class | — | (75 | ) | |||
Decrease in net assets from distributions | — | (2,729,593 | ) | |||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (34,645,293 | ) | (60,707,535 | ) | ||
Redemption Fees | ||||||
Increase in net assets from redemption fees | 3,304 | 4,955 | ||||
Net increase (decrease) in net assets | 44,424,517 | (89,970,022 | ) | |||
Net Assets | ||||||
Beginning of period | 446,756,930 | 536,726,952 | ||||
End of period | $ | 491,181,447 | $ | 446,756,930 | ||
Accumulated net investment loss | $ | (895,009 | ) | $ | (860,832 | ) |
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2017 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. International Discovery Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek capital growth.
The fund offers the Investor Class, I Class (formerly Institutional Class), Y Class, A Class, C Class, and R Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge. Sale of the Y Class commenced on April 10, 2017.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. If significant fluctuations in foreign markets are identified, the
13
fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund 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 Fees — The fund 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 fund and helps cover transaction costs that long-term investors may bear when the fund sells securities to meet investor redemptions.
14
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account the 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 use very similar investment teams and strategies (strategy assets).
The management fee schedule range and the effective annual management fee for each class for the period ended May 31, 2017 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |
Investor Class | 1.200% to 1.750% | 1.66% |
I Class | 1.000% to 1.550% | 1.46% |
Y Class | 0.850% to 1.400% | 1.31% |
A Class | 1.200% to 1.750% | 1.66% |
C Class | 1.200% to 1.750% | 1.66% |
R Class | 1.200% to 1.750% | 1.66% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2017 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Acquired Fund Fees and Expenses — The fund may invest in mutual funds, exchange-traded funds, and business development companies (the acquired funds). The 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.
15
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases were $53,556 and there were no interfund sales.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2017 were $288,113,669 and $315,978,137, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2017(1) | Year ended November 30, 2016 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 350,000,000 | 380,000,000 | ||||||||
Sold | 525,612 | $ | 7,061,841 | 596,121 | $ | 7,445,535 | ||||
Issued in reinvestment of distributions | — | — | 204,271 | 2,418,572 | ||||||
Redeemed | (3,076,354 | ) | (39,616,625 | ) | (5,416,519 | ) | (67,763,718 | ) | ||
(2,550,742 | ) | (32,554,784 | ) | (4,616,127 | ) | (57,899,611 | ) | |||
I Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||
Sold | 109,827 | 1,481,634 | 159,528 | 2,008,154 | ||||||
Issued in reinvestment of distributions | — | — | 12,934 | 154,815 | ||||||
Redeemed | (188,997 | ) | (2,503,155 | ) | (326,816 | ) | (4,131,076 | ) | ||
(79,170 | ) | (1,021,521 | ) | (154,354 | ) | (1,968,107 | ) | |||
Y Class/Shares Authorized | 50,000,000 | N/A | ||||||||
Sold | 367 | 5,000 | ||||||||
A Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 24,310 | 308,870 | 68,647 | 841,403 | ||||||
Issued in reinvestment of distributions | — | — | 1,566 | 18,092 | ||||||
Redeemed | (95,966 | ) | (1,255,711 | ) | (156,499 | ) | (1,909,517 | ) | ||
(71,656 | ) | (946,841 | ) | (86,286 | ) | (1,050,022 | ) | |||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 1,082 | 13,620 | 55,435 | 678,052 | ||||||
Redeemed | (3,496 | ) | (42,180 | ) | (38,509 | ) | (459,546 | ) | ||
(2,414 | ) | (28,560 | ) | 16,926 | 218,506 | |||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 983 | 12,581 | 2,380 | 29,452 | ||||||
Issued in reinvestment of distributions | — | — | 6 | 75 | ||||||
Redeemed | (8,121 | ) | (111,168 | ) | (3,003 | ) | (37,828 | ) | ||
(7,138 | ) | (98,587 | ) | (617 | ) | (8,301 | ) | |||
Net increase (decrease) | (2,710,753 | ) | $ | (34,645,293 | ) | (4,840,458 | ) | $ | (60,707,535 | ) |
(1) | April 10, 2017 (commencement of sale) through May 31, 2017 for the Y Class. |
16
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | $ | 23,986,141 | $ | 463,814,132 | — | |||
Temporary Cash Investments | 1,319 | 2,754,660 | — | |||||
$ | 23,987,460 | $ | 466,568,792 | — |
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.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
The fund’s investment process may result in high portfolio turnover, which could mean high transaction costs, affecting both performance and capital gains tax liabilities to investors.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 408,182,776 | |
Gross tax appreciation of investments | $ | 88,050,528 | |
Gross tax depreciation of investments | (5,677,052 | ) | |
Net tax appreciation (depreciation) of investments | $ | 82,373,476 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
17
As of November 30, 2016, the fund had accumulated short-term capital losses of $(132,519,625), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. Any unlimited losses will be required to be utilized prior to the losses which carry an expiration date. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations. Capital loss carryovers of $(114,127,606) expire in 2017 and the remaining losses are unlimited.
As of November 30, 2016, the fund had late-year ordinary loss deferrals of $(859,264), which represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
9. Recently Issued Accounting Guidance
In October 2016, the Securities and Exchange Commission adopted new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other provisions. Compliance with the amendments is effective on August 1, 2017. Management is currently evaluating the impact that adopting the amendments will have on the financial statement disclosures.
18
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2017(3) | $12.15 | —(4) | 2.27 | 2.27 | — | $14.42 | 18.68% | 1.66%(5) | (0.02)%(5) | 64% | $463,265 | ||
2016 | $12.90 | (0.03) | (0.65) | (0.68) | (0.07) | $12.15 | (5.21)% | 1.64% | (0.25)% | 139% | $421,314 | ||
2015 | $12.35 | —(4) | 0.58 | 0.58 | (0.03) | $12.90 | 4.61% | 1.67% | 0.00%(6) | 171% | $506,817 | ||
2014 | $12.70 | 0.03 | (0.24) | (0.21) | (0.14) | $12.35 | (1.73)% | 1.61% | 0.20% | 134% | $541,410 | ||
2013 | $10.08 | —(4) | 2.79 | 2.79 | (0.17) | $12.70 | 27.97% | 1.56% | 0.03% | 157% | $620,359 | ||
2012 | $9.22 | 0.04 | 0.82 | 0.86 | —(4) | $10.08 | 9.23% | 1.50% | 0.42% | 154% | $582,331 | ||
I Class(7) | |||||||||||||
2017(3) | $12.30 | 0.01 | 2.31 | 2.32 | — | $14.62 | 18.86% | 1.46%(5) | 0.18%(5) | 64% | $21,674 | ||
2016 | $13.06 | (0.01) | (0.66) | (0.67) | (0.09) | $12.30 | (5.03)% | 1.44% | (0.05)% | 139% | $19,217 | ||
2015 | $12.50 | 0.03 | 0.58 | 0.61 | (0.05) | $13.06 | 4.84% | 1.47% | 0.20% | 171% | $22,415 | ||
2014 | $12.86 | 0.06 | (0.25) | (0.19) | (0.17) | $12.50 | (1.55)% | 1.41% | 0.40% | 134% | $22,304 | ||
2013 | $10.20 | 0.05 | 2.80 | 2.85 | (0.19) | $12.86 | 28.16% | 1.36% | 0.23% | 157% | $27,341 | ||
2012 | $9.34 | 0.05 | 0.83 | 0.88 | (0.02) | $10.20 | 9.44% | 1.30% | 0.62% | 154% | $48,794 | ||
Y Class | |||||||||||||
2017(8) | $13.61 | 0.02 | 0.99 | 1.01 | — | $14.62 | 7.42% | 1.31%(5) | 1.22%(5) | 64%(9) | $5 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
A Class | |||||||||||||
2017(3) | $11.83 | (0.02) | 2.21 | 2.19 | — | $14.02 | 18.51% | 1.91%(5) | (0.27)%(5) | 64% | $5,151 | ||
2016 | $12.56 | (0.06) | (0.63) | (0.69) | (0.04) | $11.83 | (5.44)% | 1.89% | (0.50)% | 139% | $5,193 | ||
2015 | $12.03 | (0.03) | 0.56 | 0.53 | — | $12.56 | 4.32% | 1.92% | (0.25)% | 171% | $6,596 | ||
2014 | $12.36 | (0.01) | (0.22) | (0.23) | (0.10) | $12.03 | (1.92)% | 1.86% | (0.05)% | 134% | $5,576 | ||
2013 | $9.81 | (0.03) | 2.72 | 2.69 | (0.14) | $12.36 | 27.69% | 1.81% | (0.22)% | 157% | $3,585 | ||
2012 | $9.00 | 0.01 | 0.80 | 0.81 | — | $9.81 | 8.88% | 1.75% | 0.17% | 154% | $2,838 | ||
C Class | |||||||||||||
2017(3) | $11.67 | (0.06) | 2.18 | 2.12 | — | $13.79 | 18.17% | 2.66%(5) | (1.02)%(5) | 64% | $997 | ||
2016 | $12.45 | (0.15) | (0.63) | (0.78) | — | $11.67 | (6.19)% | 2.64% | (1.25)% | 139% | $872 | ||
2015 | $12.01 | (0.12) | 0.56 | 0.44 | — | $12.45 | 3.58% | 2.67% | (1.00)% | 171% | $720 | ||
2014 | $12.39 | (0.10) | (0.23) | (0.33) | (0.05) | $12.01 | (2.74)% | 2.61% | (0.80)% | 134% | $456 | ||
2013 | $9.83 | (0.14) | 2.76 | 2.62 | (0.06) | $12.39 | 26.75% | 2.56% | (0.97)% | 157% | $342 | ||
2012 | $9.08 | (0.05) | 0.80 | 0.75 | — | $9.83 | 8.14% | 2.50% | (0.58)% | 154% | $93 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
R Class | |||||||||||||
2017(3) | $11.98 | (0.04) | 2.25 | 2.21 | — | $14.19 | 18.35% | 2.16%(5) | (0.52)%(5) | 64% | $90 | ||
2016 | $12.73 | (0.10) | (0.64) | (0.74) | (0.01) | $11.98 | (5.69)% | 2.14% | (0.75)% | 139% | $161 | ||
2015 | $12.22 | (0.08) | 0.59 | 0.51 | — | $12.73 | 4.09% | 2.17% | (0.50)% | 171% | $179 | ||
2014 | $12.55 | (0.05) | (0.22) | (0.27) | (0.06) | $12.22 | (2.19)% | 2.11% | (0.30)% | 134% | $374 | ||
2013 | $9.96 | (0.06) | 2.76 | 2.70 | (0.11) | $12.55 | 27.35% | 2.06% | (0.47)% | 157% | $388 | ||
2012 | $9.15 | —(4) | 0.81 | 0.81 | — | $9.96 | 8.73% | 2.00% | (0.08)% | 154% | $290 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2017 (unaudited). |
(4) | Per-share amount was less than $0.005. |
(5) | Annualized. |
(6) | Ratio was less than 0.005%. |
(7) | Prior to April 10, 2017, the I Class was referred to as the Institutional Class. |
(8) | April 10, 2017 (commencement of sale) through May 31, 2017 (unaudited). |
(9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the six months ended May 31, 2017. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
Distributions you receive from 403(b), 457 and qualified plans are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on the "About Us" page of 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 fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s 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 fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
22
Notes |
23
Notes |
24
![]() | ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2017 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92634 1707 |
![acihorizblkb99.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/acihorizblkb99.jpg)
Semiannual Report | |
May 31, 2017 | |
International Growth Fund |
Table of Contents |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2017. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, we encourage you to visit our website, americancentury.com.
“Risk-On” Sentiment Generally Prevailed Among Investors
Optimism surrounding President Trump’s aggressive pro-growth agenda, along with improving global economic data, upbeat corporate earnings reports in the U.S. and Europe, and continued accommodative central bank policies, triggered rallies among higher-risk assets during the six-month period. In addition, moderate candidate Emmanuel Macron’s victory in France’s presidential election helped ease political uncertainty in Europe, which further aided financial market performance. Global equity markets soared, including the S&P 500 Index, the MSCI EAFE Index, and the MSCI Emerging Markets Index, which gained 10.81%, 17.91%, and 17.51%, respectively. Within these indices, growth stocks significantly outperformed their value counterparts, as investors generally favored companies expected to perform well as economic fundamentals improve.
A similar pattern prevailed within the global fixed-income markets, where higher-risk and higher-yielding sectors were top performers. Meanwhile, yields on short-maturity U.S. Treasuries increased as the Federal Reserve (the Fed) raised its interest rate target twice during the reporting period. However, yields on longer-maturity U.S. Treasuries declined, largely due to waning U.S. economic growth and inflation expectations as the reporting period unfolded. Outside the U.S., ongoing central bank stimulus programs helped keep government bond yields low. Overall, returns among broad U.S. and global fixed-income indices were positive.
Late in the reporting period, investor optimism toward President Trump’s policy agenda faded as health care and tax reform remained stalled. Further delays to these and other pro-growth proposals, combined with the Fed’s efforts to normalize U.S. monetary policy, may impede future risk-on sentiment. Meanwhile, as the Fed continues to tighten, central banks in Europe, the U.K., and Japan remain extremely accommodative. In this environment, we continue to believe in a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2017 | |
Top Ten Holdings | % of net assets |
Roche Holding AG | 2.9% |
British American Tobacco plc | 2.3% |
Unilever NV CVA | 2.1% |
Kering | 2.1% |
Alibaba Group Holding Ltd. ADR | 2.0% |
Tencent Holdings Ltd. | 2.0% |
AIA Group Ltd. | 1.9% |
Industria de Diseno Textil SA | 1.9% |
CRH plc | 1.8% |
SAP SE | 1.7% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 100.8% |
Temporary Cash Investments | 1.2% |
Other Assets and Liabilities | (2.0)% |
Investments by Country | % of net assets |
United Kingdom | 22.3% |
Japan | 15.1% |
France | 11.6% |
Germany | 8.3% |
Switzerland | 6.3% |
Netherlands | 4.1% |
China | 4.0% |
Ireland | 3.3% |
Denmark | 3.2% |
Sweden | 2.8% |
Spain | 2.7% |
Hong Kong | 2.4% |
Australia | 2.4% |
Other Countries | 12.3% |
Cash and Equivalents* | (0.8)% |
*Includes temporary cash investments and other assets and liabilities.
3
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2016 to May 31, 2017 (except as noted).
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
4
Beginning Account Value 12/1/16 | Ending Account Value 5/31/17 | Expenses Paid During Period(1) 12/1/16 - 5/31/17 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,185.70 | $6.38 | 1.17% |
I Class | $1,000 | $1,186.10 | $5.29 | 0.97% |
Y Class | $1,000 | $1,079.30(2) | $1.21(3) | 0.82% |
A Class | $1,000 | $1,183.40 | $7.73 | 1.42% |
C Class | $1,000 | $1,179.10 | $11.79 | 2.17% |
R Class | $1,000 | $1,181.90 | $9.08 | 1.67% |
R5 Class | $1,000 | $1,078.40(2) | $1.44(3) | 0.97% |
R6 Class | $1,000 | $1,186.60 | $4.47 | 0.82% |
Hypothetical | ||||
Investor Class | $1,000 | $1,019.10 | $5.89 | 1.17% |
I Class | $1,000 | $1,020.10 | $4.89 | 0.97% |
Y Class | $1,000 | $1,020.84(4) | $4.13(4) | 0.82% |
A Class | $1,000 | $1,017.85 | $7.14 | 1.42% |
C Class | $1,000 | $1,014.11 | $10.90 | 2.17% |
R Class | $1,000 | $1,016.60 | $8.40 | 1.67% |
R5 Class | $1,000 | $1,020.10(4) | $4.89(4) | 0.97% |
R6 Class | $1,000 | $1,020.84 | $4.13 | 0.82% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. |
(2) | Ending account value based on actual return from April 10, 2017 (commencement of sale) through May 31, 2017. |
(3) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 52, the number of days in the period from April 10, 2017 (commencement of sale) through May 31, 2017, divided by 365, to reflect the period. Had the class been available for the full period, the expenses paid during the period would have been higher. |
(4) | Ending account value and expenses paid during the period assumes the class had been available throughout the entire period and are calculated using the class's annualized expense ratio listed in the table above. |
5
Schedule of Investments |
MAY 31, 2017 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 100.8% | |||||
Australia — 2.4% | |||||
CSL Ltd. | 182,610 | $ | 17,543,154 | ||
Treasury Wine Estates Ltd. | 2,093,770 | 20,256,208 | |||
37,799,362 | |||||
Austria — 1.3% | |||||
Erste Group Bank AG | 553,592 | 20,086,634 | |||
Belgium — 1.7% | |||||
KBC Group NV | 345,660 | 26,008,129 | |||
Brazil — 0.5% | |||||
Itau Unibanco Holding SA Preference Shares | 649,700 | 7,157,652 | |||
Canada — 0.7% | |||||
Dollarama, Inc. | 112,150 | 10,388,518 | |||
China — 4.0% | |||||
Alibaba Group Holding Ltd. ADR(1) | 259,180 | 31,739,183 | |||
Tencent Holdings Ltd. | 890,300 | 30,573,340 | |||
62,312,523 | |||||
Denmark — 3.2% | |||||
AP Moller - Maersk A/S, B Shares | 7,880 | 15,006,804 | |||
Chr Hansen Holding A/S | 191,380 | 13,402,337 | |||
DSV A/S | 366,680 | 22,322,710 | |||
50,731,851 | |||||
France — 11.6% | |||||
Accor SA | 295,300 | 14,020,360 | |||
Arkema SA | 157,630 | 16,471,383 | |||
BNP Paribas SA | 335,940 | 23,706,886 | |||
Criteo SA ADR(1) | 210,710 | 11,047,525 | |||
Essilor International SA | 120,825 | 16,063,490 | |||
Kering | 97,850 | 32,360,371 | |||
L'Oreal SA | 89,550 | 19,158,496 | |||
Publicis Groupe SA | 227,110 | 17,386,692 | |||
TOTAL SA | 361,680 | 19,205,470 | |||
Valeo SA | 192,106 | 13,373,260 | |||
182,793,933 | |||||
Germany — 8.3% | |||||
adidas AG | 102,370 | 19,578,286 | |||
Deutsche Boerse AG | 141,520 | 14,702,138 | |||
Fresenius Medical Care AG & Co. KGaA | 165,770 | 15,858,293 | |||
HeidelbergCement AG | 200,400 | 18,657,881 | |||
Infineon Technologies AG | 619,690 | 13,706,768 | |||
SAP SE | 248,480 | 26,640,153 | |||
Zalando SE(1) | 453,210 | 21,642,401 | |||
130,785,920 | |||||
Hong Kong — 2.4% | |||||
AIA Group Ltd. | 4,300,400 | 30,490,289 | |||
Sands China Ltd. | 1,736,400 | 8,010,674 | |||
38,500,963 |
6
Shares | Value | ||||
India — 1.9% | |||||
HDFC Bank Ltd. | 445,050 | $ | 11,330,772 | ||
Tata Motors Ltd. | 2,412,780 | 17,806,032 | |||
29,136,804 | |||||
Indonesia — 1.9% | |||||
Astra International Tbk PT | 22,645,500 | 14,875,985 | |||
Bank Mandiri Persero Tbk PT | 16,733,700 | 15,829,176 | |||
30,705,161 | |||||
Ireland — 3.3% | |||||
CRH plc | 777,120 | 27,983,286 | |||
Ryanair Holdings plc ADR(1) | 217,371 | 23,202,181 | |||
51,185,467 | |||||
Italy — 0.8% | |||||
UniCredit SpA(1) | 731,250 | 12,789,965 | |||
Japan — 15.1% | |||||
Calbee, Inc. | 510,100 | 19,759,178 | |||
CyberAgent, Inc. | 278,200 | 10,047,856 | |||
Daikin Industries Ltd. | 175,500 | 17,201,377 | |||
Daito Trust Construction Co. Ltd. | 55,600 | 8,770,492 | |||
FANUC Corp. | 65,400 | 12,855,603 | |||
Keyence Corp. | 44,100 | 20,033,147 | |||
Komatsu Ltd. | 636,300 | 15,130,438 | |||
MonotaRO Co. Ltd. | 348,700 | 11,744,027 | |||
Nitori Holdings Co. Ltd. | 137,100 | 20,041,977 | |||
Omron Corp. | 116,818 | 4,883,678 | |||
ORIX Corp. | 1,183,900 | 18,685,844 | |||
Pola Orbis Holdings, Inc. | 34,300 | 960,090 | |||
Rakuten, Inc. | 1,013,600 | 12,318,786 | |||
Rohm Co. Ltd. | 132,300 | 10,619,838 | |||
Ryohin Keikaku Co. Ltd. | 29,000 | 7,549,165 | |||
Shin-Etsu Chemical Co. Ltd. | 162,500 | 14,572,912 | |||
Start Today Co. Ltd. | 828,500 | 20,676,966 | |||
Sysmex Corp. | 194,000 | 11,526,140 | |||
237,377,514 | |||||
Netherlands — 4.1% | |||||
ASML Holding NV | 148,800 | 19,640,640 | |||
Heineken NV | 127,860 | 12,592,169 | |||
Unilever NV CVA | 574,310 | 32,709,145 | |||
64,941,954 | |||||
Norway — 0.9% | |||||
DNB ASA | 801,980 | 13,582,585 | |||
Portugal — 1.1% | |||||
Jeronimo Martins SGPS SA | 875,751 | 17,432,481 | |||
Russia — 0.7% | |||||
Yandex NV, A Shares(1) | 438,070 | 11,600,094 | |||
Spain — 2.7% | |||||
Amadeus IT Group SA, A Shares | 85,130 | 4,958,453 | |||
CaixaBank SA | 1,578,500 | 7,454,562 | |||
Industria de Diseno Textil SA | 721,520 | 29,498,841 | |||
41,911,856 | |||||
7
Shares | Value | ||||
Sweden — 2.8% | |||||
Hexagon AB, B Shares | 427,030 | $ | 18,704,734 | ||
Lundin Petroleum AB(1) | 738,850 | 14,349,573 | |||
Sandvik AB | 749,890 | 11,751,273 | |||
44,805,580 | |||||
Switzerland — 6.3% | |||||
Cie Financiere Richemont SA | 138,200 | 11,529,152 | |||
Julius Baer Group Ltd. | 382,500 | 19,805,250 | |||
Lonza Group AG | 108,010 | 22,370,353 | |||
Roche Holding AG | 164,354 | 45,103,808 | |||
98,808,563 | |||||
Taiwan — 0.8% | |||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,986,000 | 13,403,305 | |||
United Kingdom — 22.3% | |||||
Ashtead Group plc | 676,915 | 13,658,206 | |||
ASOS plc(1) | 233,696 | 19,321,956 | |||
Associated British Foods plc | 323,880 | 12,502,409 | |||
Aviva plc | 3,081,565 | 20,844,832 | |||
British American Tobacco plc | 500,060 | 35,629,934 | |||
Bunzl plc | 419,600 | 13,148,216 | |||
Carnival plc | 166,930 | 10,689,529 | |||
Compass Group plc | 756,750 | 16,283,084 | |||
HSBC Holdings plc (Hong Kong) | 1,982,000 | 17,219,190 | |||
London Stock Exchange Group plc | 556,400 | 24,553,616 | |||
Reckitt Benckiser Group plc | 128,446 | 13,137,098 | |||
RELX plc | 777,940 | 16,668,868 | |||
Rio Tinto plc | 448,100 | 17,912,430 | |||
Royal Dutch Shell plc, A Shares | 559,197 | 15,170,392 | |||
Shire plc | 352,970 | 20,335,685 | |||
St. James's Place plc | 1,020,041 | 15,416,416 | |||
Tullow Oil plc(1) | 4,220,596 | 9,940,718 | |||
Weir Group plc (The) | 752,410 | 17,605,087 | |||
Wolseley plc | 315,150 | 20,749,421 | |||
Worldpay Group plc | 5,154,426 | 20,627,639 | |||
351,414,726 | |||||
TOTAL COMMON STOCKS (Cost $1,248,714,056) | 1,585,661,540 | ||||
TEMPORARY CASH INVESTMENTS — 1.2% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.875% - 2.125%, 9/30/17 - 2/15/26, valued at $10,649,941), in a joint trading account at 0.70%, dated 5/31/17, due 6/1/17 (Delivery value $10,441,415) | 10,441,212 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.875%, 8/15/45, valued at $8,884,023), at 0.22%, dated 5/31/17, due 6/1/17 (Delivery value $8,705,053) | 8,705,000 | ||||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $19,146,212) | 19,146,212 | ||||
TOTAL INVESTMENT SECURITIES — 102.0% (Cost $1,267,860,268) | 1,604,807,752 | ||||
OTHER ASSETS AND LIABILITIES — (2.0)% | (32,172,927 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 1,572,634,825 |
8
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Consumer Discretionary | 20.9 | % |
Financials | 19.2 | % |
Information Technology | 15.1 | % |
Industrials | 13.4 | % |
Consumer Staples | 11.7 | % |
Health Care | 9.4 | % |
Materials | 6.8 | % |
Energy | 3.7 | % |
Real Estate | 0.6 | % |
Cash and Equivalents* | (0.8 | )% |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
CVA | - | Certificaten Van Aandelen |
(1) | Non-income producing. |
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2017 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $1,267,860,268) | $ | 1,604,807,752 | |
Foreign currency holdings, at value (cost of $1,763,249) | 1,764,673 | ||
Receivable for investments sold | 10,834,831 | ||
Receivable for capital shares sold | 120,866 | ||
Dividends and interest receivable | 7,260,771 | ||
Other assets | 70,304 | ||
1,624,859,197 | |||
Liabilities | |||
Disbursements in excess of demand deposit cash | 12,404 | ||
Payable for investments purchased | 7,819,048 | ||
Payable for capital shares redeemed | 42,567,165 | ||
Accrued management fees | 1,547,014 | ||
Distribution and service fees payable | 23,230 | ||
Accrued foreign taxes | 255,511 | ||
52,224,372 | |||
Net Assets | $ | 1,572,634,825 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | 1,269,278,189 | ||
Distributions in excess of net investment income | (996,547 | ) | |
Accumulated net realized loss | (32,358,626 | ) | |
Net unrealized appreciation | 336,711,809 | ||
$ | 1,572,634,825 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $1,342,549,267 | 107,779,864 | $12.46 | |||
I Class, $0.01 Par Value | $102,350,599 | 8,264,463 | $12.38 | |||
Y Class, $0.01 Par Value | $5,400 | 436 | $12.39 | |||
A Class, $0.01 Par Value | $76,224,941 | 6,075,431 | $12.55* | |||
C Class, $0.01 Par Value | $6,118,999 | 502,509 | $12.18 | |||
R Class, $0.01 Par Value | $3,333,134 | 263,127 | $12.67 | |||
R5 Class, $0.01 Par Value | $5,396 | 436 | $12.38 | |||
R6 Class, $0.01 Par Value | $42,047,089 | 3,393,852 | $12.39 |
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $1,803,358) | $ | 20,516,040 | |
Interest | 13,166 | ||
20,529,206 | |||
Expenses: | |||
Management fees | 8,645,985 | ||
Distribution and service fees: | |||
A Class | 121,033 | ||
C Class | 31,291 | ||
R Class | 7,993 | ||
Directors' fees and expenses | 21,245 | ||
Other expenses | 8,236 | ||
8,835,783 | |||
Net investment income (loss) | 11,693,423 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 10,667,663 | ||
Foreign currency transactions | (339,829 | ) | |
10,327,834 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $(255,511)) | 236,644,248 | ||
Translation of assets and liabilities in foreign currencies | 269,272 | ||
236,913,520 | |||
Net realized and unrealized gain (loss) | 247,241,354 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 258,934,777 |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2016 | ||||||
Increase (Decrease) in Net Assets | May 31, 2017 | November 30, 2016 | ||||
Operations | ||||||
Net investment income (loss) | $ | 11,693,423 | $ | 12,812,320 | ||
Net realized gain (loss) | 10,327,834 | (35,597,694 | ) | |||
Change in net unrealized appreciation (depreciation) | 236,913,520 | (115,941,033 | ) | |||
Net increase (decrease) in net assets resulting from operations | 258,934,777 | (138,726,407 | ) | |||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (5,994,029 | ) | (7,144,126 | ) | ||
I Class | (404,902 | ) | (467,296 | ) | ||
A Class | (256,085 | ) | (436,078 | ) | ||
R Class | — | (4,047 | ) | |||
R6 Class | (317,212 | ) | (376,203 | ) | ||
From net realized gains: | ||||||
Investor Class | — | (71,718,645 | ) | |||
I Class | — | (3,592,483 | ) | |||
A Class | — | (7,082,263 | ) | |||
C Class | — | (530,306 | ) | |||
R Class | — | (173,171 | ) | |||
R6 Class | — | (2,461,989 | ) | |||
Decrease in net assets from distributions | (6,972,228 | ) | (93,986,607 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (124,687,058 | ) | (28,937,016 | ) | ||
Redemption Fees | ||||||
Increase in net assets from redemption fees | 7,002 | 19,316 | ||||
Net increase (decrease) in net assets | 127,282,493 | (261,630,714 | ) | |||
Net Assets | ||||||
Beginning of period | 1,445,352,332 | 1,706,983,046 | ||||
End of period | $ | 1,572,634,825 | $ | 1,445,352,332 | ||
Distributions in excess of net investment income | $ | (996,547 | ) | $ | (5,717,742 | ) |
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2017 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. International Growth Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek capital growth.
The fund offers the Investor Class, I Class (formerly Institutional Class), Y Class, A Class, C Class, R Class, R5 Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge. Sale of the Y Class and R5 Class commenced on April 10, 2017.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of
13
Directors, or its delegate, deems appropriate. If significant fluctuations in foreign markets are identified, the fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund 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 Fees — The fund 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 fund and helps cover
14
transaction costs that long-term investors may bear when the 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 fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. and American Century Strategic Asset Allocations, Inc. own, in aggregate, 21% of the shares of the fund.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account the 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 use very similar investment teams and strategies (strategy assets). The strategy assets of the fund also include the assets of NT International Growth Fund, one fund in a series issued by the corporation.
The management fee schedule range and the effective annual management fee for each class for the period ended May 31, 2017 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |
Investor Class | 1.050% to 1.500% | 1.17% |
I Class | 0.850% to 1.300% | 0.97% |
Y Class | 0.700% to 1.150% | 0.82% |
A Class | 1.050% to 1.500% | 1.17% |
C Class | 1.050% to 1.500% | 1.17% |
R Class | 1.050% to 1.500% | 1.17% |
R5 Class | 0.850% to 1.300% | 0.97% |
R6 Class | 0.700% to 1.150% | 0.82% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2017 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
15
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases were $456,970 and there were no interfund sales.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2017 were $452,340,549 and $549,396,984, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2017(1) | Year ended November 30, 2016 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 920,000,000 | 875,000,000 | ||||||||
Sold | 5,491,637 | $ | 61,816,145 | 10,482,368 | $ | 113,487,463 | ||||
Issued in reinvestment of distributions | 552,236 | 5,837,134 | 6,787,008 | 76,693,189 | ||||||
Redeemed | (14,647,309 | ) | (169,555,051 | ) | (17,865,264 | ) | (197,712,746 | ) | ||
(8,603,436 | ) | (101,901,772 | ) | (595,888 | ) | (7,532,094 | ) | |||
I Class/Shares Authorized | 80,000,000 | 70,000,000 | ||||||||
Sold | 3,533,111 | 39,868,737 | 1,251,989 | 13,630,649 | ||||||
Issued in reinvestment of distributions | 38,562 | 404,902 | 361,512 | 4,059,779 | ||||||
Redeemed | (941,398 | ) | (10,798,330 | ) | (1,756,602 | ) | (19,107,397 | ) | ||
2,630,275 | 29,475,309 | (143,101 | ) | (1,416,969 | ) | |||||
Y Class/Shares Authorized | 50,000,000 | N/A | ||||||||
Sold | 436 | 5,000 | ||||||||
A Class/Shares Authorized | 120,000,000 | 185,000,000 | ||||||||
Sold | 476,829 | 5,418,188 | 1,831,048 | 20,171,236 | ||||||
Issued in reinvestment of distributions | 23,420 | 249,663 | 646,908 | 7,374,750 | ||||||
Redeemed | (4,665,878 | ) | (53,655,312 | ) | (3,693,064 | ) | (40,701,226 | ) | ||
(4,165,629 | ) | (47,987,461 | ) | (1,215,108 | ) | (13,155,240 | ) | |||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 17,560 | 198,731 | 70,768 | 760,067 | ||||||
Issued in reinvestment of distributions | — | — | 39,978 | 445,758 | ||||||
Redeemed | (167,957 | ) | (1,852,899 | ) | (321,709 | ) | (3,439,340 | ) | ||
(150,397 | ) | (1,654,168 | ) | (210,963 | ) | (2,233,515 | ) | |||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 53,438 | 619,070 | 101,622 | 1,141,480 | ||||||
Issued in reinvestment of distributions | — | — | 13,640 | 157,129 | ||||||
Redeemed | (78,642 | ) | (916,575 | ) | (93,508 | ) | (1,040,020 | ) | ||
(25,204 | ) | (297,505 | ) | 21,754 | 258,589 | |||||
R5 Class/Shares Authorized | 50,000,000 | N/A | ||||||||
Sold | 436 | 5,000 | ||||||||
R6 Class/Shares Authorized | 50,000,000 | 40,000,000 | ||||||||
Sold | 298,978 | 3,307,743 | 1,828,729 | 19,554,531 | ||||||
Issued in reinvestment of distributions | 30,211 | 317,212 | 252,958 | 2,838,192 | ||||||
Redeemed | (535,957 | ) | (5,956,416 | ) | (2,488,738 | ) | (27,250,510 | ) | ||
(206,768 | ) | (2,331,461 | ) | (407,051 | ) | (4,857,787 | ) | |||
Net increase (decrease) | (10,520,287 | ) | $ | (124,687,058 | ) | (2,550,357 | ) | $ | (28,937,016 | ) |
(1) | April 10, 2017 (commencement of sale) through May 31, 2017 for the Y Class and R5 Class. |
16
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | $ | 77,588,983 | $ | 1,508,072,557 | — | |||
Temporary Cash Investments | — | 19,146,212 | — | |||||
$ | 77,588,983 | $ | 1,527,218,769 | — |
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 period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 1,271,456,070 | |
Gross tax appreciation of investments | $ | 337,388,605 | |
Gross tax depreciation of investments | (4,036,923 | ) | |
Net tax appreciation (depreciation) of investments | $ | 333,351,682 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2016, the fund had accumulated short-term capital losses of $(37,331,872), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
17
9. Recently Issued Accounting Guidance
In October 2016, the Securities and Exchange Commission adopted new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other provisions. Compliance with the amendments is effective on August 1, 2017. Management is currently evaluating the impact that adopting the amendments will have on the financial statement disclosures.
18
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||||
2017(3) | $10.56 | 0.09 | 1.86 | 1.95 | (0.05) | — | (0.05) | $12.46 | 18.57% | 1.17%(4) | 1.55%(4) | 30% | $1,342,549 | ||
2016 | $12.25 | 0.09 | (1.10) | (1.01) | (0.06) | (0.62) | (0.68) | $10.56 | (8.59)% | 1.18% | 0.83% | 70% | $1,229,531 | ||
2015 | $13.40 | 0.07 | (0.34) | (0.27) | (0.08) | (0.80) | (0.88) | $12.25 | (1.86)% | 1.17% | 0.62% | 62% | $1,432,784 | ||
2014 | $13.78 | 0.10 | —(5) | 0.10 | (0.20) | (0.28) | (0.48) | $13.40 | 0.80% | 1.18% | 0.74% | 75% | $1,521,655 | ||
2013 | $11.27 | 0.11 | 2.58 | 2.69 | (0.18) | — | (0.18) | $13.78 | 24.22% | 1.22% | 0.84% | 110% | $1,499,623 | ||
2012 | $9.90 | 0.15 | 1.33 | 1.48 | (0.11) | — | (0.11) | $11.27 | 15.10% | 1.29% | 1.41% | 106% | $1,268,251 | ||
I Class(6) | |||||||||||||||
2017(3) | $10.51 | 0.12 | 1.82 | 1.94 | (0.07) | — | (0.07) | $12.38 | 18.61% | 0.97%(4) | 1.75%(4) | 30% | $102,351 | ||
2016 | $12.19 | 0.11 | (1.09) | (0.98) | (0.08) | (0.62) | (0.70) | $10.51 | (8.40)% | 0.98% | 1.03% | 70% | $59,236 | ||
2015 | $13.33 | 0.10 | (0.34) | (0.24) | (0.10) | (0.80) | (0.90) | $12.19 | (1.63)% | 0.97% | 0.82% | 62% | $70,422 | ||
2014 | $13.73 | 0.14 | (0.03) | 0.11 | (0.23) | (0.28) | (0.51) | $13.33 | 0.91% | 0.98% | 0.94% | 75% | $138,527 | ||
2013 | $11.24 | 0.13 | 2.58 | 2.71 | (0.22) | — | (0.22) | $13.73 | 24.54% | 1.02% | 1.04% | 110% | $185,325 | ||
2012 | $9.89 | 0.17 | 1.33 | 1.50 | (0.15) | — | (0.15) | $11.24 | 15.28% | 1.09% | 1.61% | 106% | $140,446 | ||
Y Class | |||||||||||||||
2017(7) | $11.48 | 0.07 | 0.84 | 0.91 | — | — | — | $12.39 | 7.93% | 0.82%(4) | 3.91%(4) | 30%(8) | $5 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
A Class | |||||||||||||||
2017(3) | $10.63 | 0.05 | 1.90 | 1.95 | (0.03) | — | (0.03) | $12.55 | 18.34% | 1.42%(4) | 1.30%(4) | 30% | $76,225 | ||
2016 | $12.32 | 0.06 | (1.09) | (1.03) | (0.04) | (0.62) | (0.66) | $10.63 | (8.73)% | 1.43% | 0.58% | 70% | $108,847 | ||
2015 | $13.48 | 0.07 | (0.37) | (0.30) | (0.06) | (0.80) | (0.86) | $12.32 | (2.13)% | 1.42% | 0.37% | 62% | $141,175 | ||
2014 | $13.86 | 0.07 | (0.01) | 0.06 | (0.16) | (0.28) | (0.44) | $13.48 | 0.49% | 1.43% | 0.49% | 75% | $301,164 | ||
2013 | $11.33 | 0.07 | 2.61 | 2.68 | (0.15) | — | (0.15) | $13.86 | 23.98% | 1.47% | 0.59% | 110% | $267,979 | ||
2012 | $9.92 | 0.12 | 1.35 | 1.47 | (0.06) | — | (0.06) | $11.33 | 14.80% | 1.54% | 1.16% | 106% | $198,434 | ||
C Class | |||||||||||||||
2017(3) | $10.33 | 0.02 | 1.83 | 1.85 | — | — | — | $12.18 | 17.91% | 2.17%(4) | 0.55%(4) | 30% | $6,119 | ||
2016 | $12.04 | (0.02) | (1.07) | (1.09) | — | (0.62) | (0.62) | $10.33 | (9.43)% | 2.18% | (0.17)% | 70% | $6,743 | ||
2015 | $13.22 | (0.05) | (0.33) | (0.38) | — | (0.80) | (0.80) | $12.04 | (2.81)% | 2.17% | (0.38)% | 62% | $10,402 | ||
2014 | $13.58 | (0.03) | (0.02) | (0.05) | (0.03) | (0.28) | (0.31) | $13.22 | (0.29)% | 2.18% | (0.26)% | 75% | $10,129 | ||
2013 | $11.14 | (0.03) | 2.57 | 2.54 | (0.10) | — | (0.10) | $13.58 | 23.00% | 2.22% | (0.16)% | 110% | $4,859 | ||
2012 | $9.77 | 0.04 | 1.33 | 1.37 | — | — | — | $11.14 | 14.02% | 2.29% | 0.41% | 106% | $2,497 | ||
R Class | |||||||||||||||
2017(3) | $10.72 | 0.06 | 1.89 | 1.95 | — | — | — | $12.67 | 18.19% | 1.67%(4) | 1.05%(4) | 30% | $3,333 | ||
2016 | $12.43 | 0.04 | (1.12) | (1.08) | (0.01) | (0.62) | (0.63) | $10.72 | (9.00)% | 1.68% | 0.33% | 70% | $3,090 | ||
2015 | $13.59 | 0.02 | (0.35) | (0.33) | (0.03) | (0.80) | (0.83) | $12.43 | (2.31)% | 1.67% | 0.12% | 62% | $3,313 | ||
2014 | $13.96 | 0.03 | (0.01) | 0.02 | (0.11) | (0.28) | (0.39) | $13.59 | 0.25% | 1.68% | 0.24% | 75% | $2,195 | ||
2013 | $11.41 | 0.05 | 2.62 | 2.67 | (0.12) | — | (0.12) | $13.96 | 23.59% | 1.72% | 0.34% | 110% | $2,270 | ||
2012 | $9.97 | 0.10 | 1.35 | 1.45 | (0.01) | — | (0.01) | $11.41 | 14.56% | 1.79% | 0.91% | 106% | $2,262 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
R5 Class | |||||||||||||||
2017(7) | $11.48 | 0.06 | 0.84 | 0.90 | — | — | — | $12.38 | 7.84% | 0.97%(4) | 3.76%(4) | 30%(8) | $5 | ||
R6 Class | |||||||||||||||
2017(3) | $10.53 | 0.11 | 1.84 | 1.95 | (0.09) | — | (0.09) | $12.39 | 18.66% | 0.82%(4) | 1.90%(4) | 30% | $42,047 | ||
2016 | $12.20 | 0.14 | (1.10) | (0.96) | (0.09) | (0.62) | (0.71) | $10.53 | (8.19)% | 0.83% | 1.18% | 70% | $37,903 | ||
2015 | $13.34 | 0.11 | (0.33) | (0.22) | (0.12) | (0.80) | (0.92) | $12.20 | (1.50)% | 0.82% | 0.97% | 62% | $48,887 | ||
2014 | $13.74 | 0.13 | —(5) | 0.13 | (0.25) | (0.28) | (0.53) | $13.34 | 1.10% | 0.83% | 1.09% | 75% | $8,411 | ||
2013(9) | $12.56 | 0.01 | 1.17 | 1.18 | — | — | — | $13.74 | 9.39% | 0.85%(4) | 0.20%(4) | 110%(10) | $5,076 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2017 (unaudited). |
(4) | Annualized. |
(5) | Per-share amount was less than $0.005. |
(6) | Prior to April 10, 2017, the I Class was referred to as the Institutional Class. |
(7) | April 10, 2017 (commencement of sale) through May 31, 2017 (unaudited). |
(8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the six months ended May 31, 2017. |
(9) | July 26, 2013 (commencement of sale) through November 30, 2013. |
(10) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2013. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
Distributions you receive from 403(b), 457 and qualified plans are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on the "About Us" page of 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 fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s 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 fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
22
Notes |
23
Notes |
24
![]() | ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2017 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92630 1707 |
![acihorizblkb99.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/acihorizblkb99.jpg)
Semiannual Report | |
May 31, 2017 | |
International Opportunities Fund |
Table of Contents |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2017. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, we encourage you to visit our website, americancentury.com.
“Risk-On” Sentiment Generally Prevailed Among Investors
Optimism surrounding President Trump’s aggressive pro-growth agenda, along with improving global economic data, upbeat corporate earnings reports in the U.S. and Europe, and continued accommodative central bank policies, triggered rallies among higher-risk assets during the six-month period. In addition, moderate candidate Emmanuel Macron’s victory in France’s presidential election helped ease political uncertainty in Europe, which further aided financial market performance. Global equity markets soared, including the S&P 500 Index, the MSCI EAFE Index, and the MSCI Emerging Markets Index, which gained 10.81%, 17.91%, and 17.51%, respectively. Within these indices, growth stocks significantly outperformed their value counterparts, as investors generally favored companies expected to perform well as economic fundamentals improve.
A similar pattern prevailed within the global fixed-income markets, where higher-risk and higher-yielding sectors were top performers. Meanwhile, yields on short-maturity U.S. Treasuries increased as the Federal Reserve (the Fed) raised its interest rate target twice during the reporting period. However, yields on longer-maturity U.S. Treasuries declined, largely due to waning U.S. economic growth and inflation expectations as the reporting period unfolded. Outside the U.S., ongoing central bank stimulus programs helped keep government bond yields low. Overall, returns among broad U.S. and global fixed-income indices were positive.
Late in the reporting period, investor optimism toward President Trump’s policy agenda faded as health care and tax reform remained stalled. Further delays to these and other pro-growth proposals, combined with the Fed’s efforts to normalize U.S. monetary policy, may impede future risk-on sentiment. Meanwhile, as the Fed continues to tighten, central banks in Europe, the U.K., and Japan remain extremely accommodative. In this environment, we continue to believe in a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2017 | |
Top Ten Holdings | % of net assets |
Rentokil Initial plc | 2.3% |
Teleperformance | 2.2% |
Melco International Development Ltd. | 1.8% |
Saab AB, B Shares | 1.7% |
Straumann Holding AG | 1.6% |
Shopify, Inc., Class A | 1.5% |
Logitech International SA | 1.5% |
ASOS plc | 1.5% |
Davide Campari-Milano SpA | 1.4% |
Bellway plc | 1.4% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 98.1% |
Temporary Cash Investments | 1.8% |
Other Assets and Liabilities | 0.1% |
Investments by Country | % of net assets |
Japan | 19.5% |
Canada | 10.7% |
United Kingdom | 10.2% |
France | 8.7% |
Italy | 7.4% |
Germany | 5.9% |
South Korea | 5.1% |
Switzerland | 4.3% |
Taiwan | 3.5% |
Sweden | 3.4% |
India | 2.4% |
New Zealand | 2.0% |
Other Countries | 15.0% |
Cash and Equivalents* | 1.9% |
* Includes temporary cash investments and other assets and liabilities.
3
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2016 to May 31, 2017.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
4
Beginning Account Value 12/1/16 | Ending Account Value 5/31/17 | Expenses Paid During Period(1) 12/1/16 - 5/31/17 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class (after waiver) | $1,000 | $1,203.10 | $8.57 | 1.56% |
Investor Class (before waiver) | $1,000 | $1,203.10(2) | $9.67 | 1.76% |
I Class (after waiver) | $1,000 | $1,204.50 | $7.47 | 1.36% |
I Class (before waiver) | $1,000 | $1,204.50(2) | $8.57 | 1.56% |
A Class (after waiver) | $1,000 | $1,201.70 | $9.94 | 1.81% |
A Class (before waiver) | $1,000 | $1,201.70(2) | $11.03 | 2.01% |
C Class (after waiver) | $1,000 | $1,197.30 | $14.02 | 2.56% |
C Class (before waiver) | $1,000 | $1,197.30(2) | $15.12 | 2.76% |
R Class (after waiver) | $1,000 | $1,200.70 | $11.30 | 2.06% |
R Class (before waiver) | $1,000 | $1,200.70(2) | $12.40 | 2.26% |
Hypothetical | ||||
Investor Class (after waiver) | $1,000 | $1,017.15 | $7.85 | 1.56% |
Investor Class (before waiver) | $1,000 | $1,016.16 | $8.85 | 1.76% |
I Class (after waiver) | $1,000 | $1,018.15 | $6.84 | 1.36% |
I Class (before waiver) | $1,000 | $1,017.15 | $7.85 | 1.56% |
A Class (after waiver) | $1,000 | $1,015.91 | $9.10 | 1.81% |
A Class (before waiver) | $1,000 | $1,014.91 | $10.10 | 2.01% |
C Class (after waiver) | $1,000 | $1,012.17 | $12.84 | 2.56% |
C Class (before waiver) | $1,000 | $1,011.17 | $13.84 | 2.76% |
R Class (after waiver) | $1,000 | $1,014.66 | $10.35 | 2.06% |
R Class (before waiver) | $1,000 | $1,013.66 | $11.35 | 2.26% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. |
(2) | Ending account value assumes the return earned after waiver and would have been lower if a portion of the fees had not been waived. |
5
Schedule of Investments |
MAY 31, 2017 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 98.1% | |||||
Australia — 1.5% | |||||
BlueScope Steel Ltd. | 80,840 | $ | 690,784 | ||
Nanosonics Ltd.(1) | 248,286 | 520,259 | |||
Northern Star Resources Ltd. | 304,660 | 1,068,503 | |||
2,279,546 | |||||
Austria — 0.9% | |||||
Lenzing AG | 7,510 | 1,345,177 | |||
Belgium — 0.7% | |||||
Galapagos NV(1) | 12,700 | 1,056,865 | |||
Brazil — 1.9% | |||||
CVC Brasil Operadora e Agencia de Viagens SA | 135,000 | 1,249,479 | |||
EcoRodovias Infraestrutura e Logistica SA | 256,400 | 729,753 | |||
Iguatemi Empresa de Shopping Centers SA | 102,400 | 1,000,282 | |||
2,979,514 | |||||
Canada — 10.7% | |||||
Alamos Gold, Inc., Class A | 113,882 | 766,323 | |||
BRP, Inc.(1) | 31,761 | 772,600 | |||
Canadian Energy Services & Technology Corp. | 255,503 | 1,210,511 | |||
Descartes Systems Group, Inc. (The)(1) | 67,360 | 1,684,436 | |||
Enerflex Ltd. | 72,564 | 921,252 | |||
FirstService Corp. | 22,170 | 1,386,969 | |||
Hudbay Minerals, Inc. | 111,110 | 568,361 | |||
Interfor Corp.(1) | 96,246 | 1,256,111 | |||
New Flyer Industries, Inc. | 51,804 | 2,130,681 | |||
Parex Resources, Inc.(1) | 111,437 | 1,337,227 | |||
Premium Brands Holdings Corp. | 24,898 | 1,701,767 | |||
Shopify, Inc., Class A(1) | 26,042 | 2,392,218 | |||
Trican Well Service Ltd.(1) | 214,760 | 637,515 | |||
16,765,971 | |||||
China — 1.9% | |||||
China Resources Cement Holdings Ltd. | 1,470,000 | 728,157 | |||
Lonking Holdings Ltd. | 3,884,000 | 1,076,597 | |||
Q Technology Group Co. Ltd.(1) | 1,165,000 | 882,060 | |||
Tongda Group Holdings Ltd. | 1,230,000 | 350,412 | |||
3,037,226 | |||||
Denmark — 0.5% | |||||
Ambu A/S, B Shares | 11,391 | 763,821 | |||
France — 8.7% | |||||
Alten SA | 11,325 | 1,009,104 | |||
Eurofins Scientific SE | 1,590 | 844,391 | |||
Maisons du Monde SA(1) | 36,699 | 1,385,599 | |||
Nexans SA | 14,045 | 768,125 | |||
Rubis SCA | 18,040 | 2,090,358 | |||
SOITEC(1) | 15,840 | 873,856 | |||
Tarkett SA | 25,460 | 1,270,433 | |||
Teleperformance | 25,893 | 3,387,168 |
6
Shares | Value | ||||
Worldline SA(1) | 32,930 | $ | 1,157,291 | ||
X-Fab Silicon Foundries SE(1) | 83,878 | 857,441 | |||
13,643,766 | |||||
Germany — 5.9% | |||||
AURELIUS Equity Opportunities SE & Co. KGaA | 18,462 | 1,075,539 | |||
Carl Zeiss Meditec AG | 23,549 | 1,218,063 | |||
CTS Eventim AG & Co. KGaA | 33,363 | 1,454,346 | |||
Duerr AG | 14,700 | 1,603,270 | |||
Jungheinrich AG Preference Shares | 29,585 | 1,113,515 | |||
MorphoSys AG(1) | 13,810 | 1,011,322 | |||
Sartorius AG Preference Shares | 16,950 | 1,727,950 | |||
9,204,005 | |||||
Hong Kong — 1.8% | |||||
Melco International Development Ltd. | 1,090,000 | 2,867,482 | |||
India — 2.4% | |||||
Indiabulls Housing Finance Ltd., ADR | 108,360 | 1,949,204 | |||
Vakrangee Ltd. | 333,030 | 1,883,488 | |||
3,832,692 | |||||
Indonesia — 1.0% | |||||
PT Bank Tabungan Negara Persero Tbk | 8,104,900 | 1,521,190 | |||
Italy — 7.4% | |||||
Amplifon SpA | 125,530 | 1,788,058 | |||
Banca Generali SpA | 50,299 | 1,451,571 | |||
Buzzi Unicem SpA | 56,040 | 1,454,832 | |||
Davide Campari-Milano SpA | 307,880 | 2,152,959 | |||
FinecoBank Banca Fineco SpA | 219,530 | 1,649,814 | |||
Moncler SpA | 82,750 | 2,015,311 | |||
Salvatore Ferragamo SpA | 36,076 | 1,007,070 | |||
11,519,615 | |||||
Japan — 19.5% | |||||
Anritsu Corp. | 133,900 | 1,158,250 | |||
Cosmos Pharmaceutical Corp. | 6,800 | 1,434,907 | |||
Daifuku Co. Ltd. | 57,100 | 1,740,068 | |||
DMG Mori Co. Ltd. | 73,000 | 1,148,226 | |||
eRex Co. Ltd. | 37,200 | 352,014 | |||
GMO Payment Gateway, Inc. | 20,500 | 1,193,905 | |||
Hitachi Maxell Ltd. | 55,600 | 1,091,417 | |||
Itochu Techno-Solutions Corp. | 48,500 | 1,653,160 | |||
Kanto Denka Kogyo Co. Ltd. | 42,600 | 347,724 | |||
Lion Corp. | 74,300 | 1,572,544 | |||
Nachi-Fujikoshi Corp. | 197,000 | 994,339 | |||
Nifco, Inc. | 14,900 | 761,481 | |||
Nihon M&A Center, Inc. | 31,400 | 1,240,406 | |||
Nippon Shinyaku Co. Ltd. | 22,700 | 1,324,081 | |||
Outsourcing, Inc. | 9,600 | 438,609 | |||
Pigeon Corp. | 56,800 | 1,959,151 | |||
Sakata Seed Corp. | 33,000 | 1,053,318 | |||
SMS Co. Ltd. | 29,600 | 817,842 | |||
Sumco Corp. | 73,000 | 1,206,889 | |||
Topcon Corp. | 70,300 | 1,284,126 | |||
Toyo Tire & Rubber Co. Ltd. | 77,200 | 1,486,144 |
7
Shares | Value | ||||
Tsukui Corp. | 127,200 | $ | 790,191 | ||
Ulvac, Inc. | 38,400 | 2,128,903 | |||
Vector, Inc. | 91,700 | 1,345,485 | |||
Yumeshin Holdings Co. Ltd. | 78,600 | 522,344 | |||
Zenkoku Hosho Co. Ltd. | 33,400 | 1,367,666 | |||
30,413,190 | |||||
Netherlands — 1.8% | |||||
ASR Nederland NV(1) | 52,650 | 1,689,754 | |||
OCI NV(1) | 47,309 | 1,130,650 | |||
2,820,404 | |||||
New Zealand — 2.0% | |||||
a2 Milk Co. Ltd.(1) | 653,590 | 1,544,368 | |||
Fisher & Paykel Healthcare Corp. Ltd. | 205,670 | 1,559,173 | |||
3,103,541 | |||||
Norway — 0.9% | |||||
Aker BP ASA | 87,045 | 1,421,681 | |||
South Africa — 0.8% | |||||
Dis-Chem Pharmacies Ltd. | 574,960 | 1,263,904 | |||
South Korea — 5.1% | |||||
CJ CGV Co. Ltd. | 19,400 | 1,464,184 | |||
HS Industries Co. Ltd. | 97,280 | 835,864 | |||
Korea Kolmar Co. Ltd. | 19,405 | 1,480,160 | |||
Loen Entertainment, Inc. | 13,980 | 1,020,155 | |||
Medy-Tox, Inc. | 2,620 | 1,221,543 | |||
SK Materials Co. Ltd. | 6,719 | 1,178,646 | |||
Vieworks Co. Ltd. | 14,364 | 746,682 | |||
7,947,234 | |||||
Spain — 0.8% | |||||
NH Hotel Group SA(1) | 201,813 | 1,181,141 | |||
Sweden — 3.4% | |||||
Munters Group AB(1) | 48,347 | 399,118 | |||
Saab AB, B Shares | 50,150 | 2,609,226 | |||
Scandic Hotels Group AB | 119,070 | 1,527,522 | |||
SSAB AB, A Shares(1) | 204,040 | 832,697 | |||
5,368,563 | |||||
Switzerland — 4.3% | |||||
Logitech International SA | 64,689 | 2,364,349 | |||
Straumann Holding AG | 4,420 | 2,448,330 | |||
Temenos Group AG | 20,092 | 1,869,072 | |||
6,681,751 | |||||
Taiwan — 3.5% | |||||
Advanced Ceramic X Corp. | 80,000 | 845,773 | |||
Airtac International Group | 113,000 | 1,247,249 | |||
Basso Industry Corp. | 284,000 | 805,386 | |||
Merry Electronics Co. Ltd. | 220,000 | 1,232,421 | |||
Silergy Corp. | 68,000 | 1,342,863 | |||
5,473,692 | |||||
Thailand — 0.5% | |||||
Taokaenoi Food & Marketing PCL, Class F | 1,200,100 | 810,402 | |||
United Kingdom — 10.2% | |||||
Ashmore Group plc | 333,264 | 1,505,885 |
8
Shares | Value | ||||
ASOS plc(1) | 28,499 | $ | 2,356,294 | ||
BBA Aviation plc | 282,259 | 1,172,130 | |||
Bellway plc | 58,600 | 2,133,720 | |||
NEX Group plc | 136,714 | 1,135,282 | |||
Rentokil Initial plc | 1,054,902 | 3,610,006 | |||
RPC Group plc | 105,200 | 1,162,976 | |||
Spectris plc | 58,660 | 1,974,919 | |||
Ultra Electronics Holdings plc | 31,600 | 868,045 | |||
15,919,257 | |||||
TOTAL COMMON STOCKS (Cost $116,825,703) | 153,221,630 | ||||
TEMPORARY CASH INVESTMENTS — 1.8% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.875% - 2.125%, 9/30/17 - 2/15/26, valued at $1,546,376), in a joint trading account at 0.70%, dated 5/31/17, due 6/1/17 (Delivery value $1,516,098) | 1,516,069 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 1.00%, 2/15/46, valued at $1,294,479), at 0.22%, dated 5/31/17, due 6/1/17 (Delivery value $1,264,008) | 1,264,000 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 666 | 666 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $2,780,735) | 2,780,735 | ||||
TOTAL INVESTMENT SECURITIES — 99.9% (Cost $119,606,438) | 156,002,365 | ||||
OTHER ASSETS AND LIABILITIES — 0.1% | 182,182 | ||||
TOTAL NET ASSETS — 100.0% | $ | 156,184,547 |
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Information Technology | 19.5 | % |
Industrials | 17.9 | % |
Consumer Discretionary | 17.0 | % |
Health Care | 11.0 | % |
Consumer Staples | 9.6 | % |
Financials | 8.6 | % |
Materials | 8.0 | % |
Energy | 3.5 | % |
Utilities | 1.5 | % |
Real Estate | 1.5 | % |
Cash and Equivalents* | 1.9 | % |
* Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
(1) | Non-income producing. |
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2017 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $119,606,438) | $ | 156,002,365 | |
Foreign currency holdings, at value (cost of $20,367) | 20,358 | ||
Receivable for investments sold | 162,326 | ||
Receivable for capital shares sold | 59,989 | ||
Dividends and interest receivable | 333,493 | ||
Other assets | 56,007 | ||
156,634,538 | |||
Liabilities | |||
Payable for investments purchased | 60,208 | ||
Payable for capital shares redeemed | 108,095 | ||
Accrued management fees | 194,080 | ||
Distribution and service fees payable | 4,849 | ||
Accrued foreign taxes | 82,759 | ||
449,991 | |||
Net Assets | $ | 156,184,547 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 116,676,093 | |
Distributions in excess of net investment income | (348,840 | ) | |
Undistributed net realized gain | 3,557,970 | ||
Net unrealized appreciation | 36,299,324 | ||
$ | 156,184,547 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $126,356,870 | 12,374,414 | $10.21 | |||
I Class, $0.01 Par Value | $13,038,146 | 1,264,401 | $10.31 | |||
A Class, $0.01 Par Value | $14,251,660 | 1,406,267 | $10.13* | |||
C Class, $0.01 Par Value | $1,702,663 | 173,131 | $9.83 | |||
R Class, $0.01 Par Value | $835,208 | 83,116 | $10.05 |
*Maximum offering price $10.75 (net asset value divided by 0.9425).
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $118,174) | $ | 1,172,116 | |
Interest | 1,822 | ||
1,173,938 | |||
Expenses: | |||
Management fees | 1,186,489 | ||
Distribution and service fees: | |||
A Class | 18,652 | ||
C Class | 7,927 | ||
R Class | 1,813 | ||
Directors' fees and expenses | 1,912 | ||
Other expenses | 3,253 | ||
1,220,046 | |||
Fees waived(1) | (136,512 | ) | |
1,083,534 | |||
Net investment income (loss) | 90,404 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 4,108,969 | ||
Foreign currency transactions | (13,761 | ) | |
4,095,208 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $(82,759)) | 21,468,624 | ||
Translation of assets and liabilities in foreign currencies | 22,895 | ||
21,491,519 | |||
Net realized and unrealized gain (loss) | 25,586,727 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 25,677,131 |
(1) | Amount consists of $111,942, $7,337, $14,923, $1,585 and $725 for the Investor Class, I Class, A Class, C Class and R Class, respectively. |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2016 | ||||||
Increase (Decrease) in Net Assets | May 31, 2017 | November 30, 2016 | ||||
Operations | ||||||
Net investment income (loss) | $ | 90,404 | $ | (150,974 | ) | |
Net realized gain (loss) | 4,095,208 | 1,245,292 | ||||
Change in net unrealized appreciation (depreciation) | 21,491,519 | (7,284,247 | ) | |||
Net increase (decrease) in net assets resulting from operations | 25,677,131 | (6,189,929 | ) | |||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (41,869 | ) | (1,126,676 | ) | ||
I Class | (15,442 | ) | (65,585 | ) | ||
A Class | — | (135,676 | ) | |||
C Class | — | (1,467 | ) | |||
R Class | — | (3,245 | ) | |||
From net realized gains: | ||||||
Investor Class | — | (2,032,554 | ) | |||
I Class | — | (100,298 | ) | |||
A Class | — | (315,770 | ) | |||
C Class | — | (25,684 | ) | |||
R Class | — | (10,615 | ) | |||
Decrease in net assets from distributions | (57,311 | ) | (3,817,570 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (693,334 | ) | (15,817,396 | ) | ||
Redemption Fees | ||||||
Increase in net assets from redemption fees | 7,150 | 11,338 | ||||
Net increase (decrease) in net assets | 24,933,636 | (25,813,557 | ) | |||
Net Assets | ||||||
Beginning of period | 131,250,911 | 157,064,468 | ||||
End of period | $ | 156,184,547 | $ | 131,250,911 | ||
Accumulated (distributions in excess of) net investment income (loss) | $ | (348,840 | ) | $ | (381,933 | ) |
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2017 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. International Opportunities Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek capital growth.
The fund offers the Investor Class, I Class (formerly Institutional Class), A Class, C Class and R Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. If significant fluctuations in foreign markets are identified, the
13
fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund 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.
14
Redemption Fees — The fund 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 fund and helps cover transaction costs that long-term investors may bear when the 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 fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account the 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 use very similar investment teams and strategies (strategy assets). During the period ended May 31, 2017, the investment advisor agreed to waive 0.20% of the fund's management fee. The investment advisor expects this waiver to continue until March 31, 2018 and cannot terminate it prior to such date without the approval of the Board of Directors.
The management fee schedule range and the effective annual management fee before and after waiver for each class for the period ended May 31, 2017 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | ||
Before Waiver | After Waiver | ||
Investor Class | 1.400% to 2.000% | 1.75% | 1.55% |
I Class | 1.200% to 1.800% | 1.55% | 1.35% |
A Class | 1.400% to 2.000% | 1.75% | 1.55% |
C Class | 1.400% to 2.000% | 1.75% | 1.55% |
R Class | 1.400% to 2.000% | 1.75% | 1.55% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2017 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
15
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. There were no interfund transactions during the period.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2017 were $90,984,611 and $93,153,249, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2017 | Year ended November 30, 2016 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 120,000,000 | 120,000,000 | ||||||||
Sold | 1,569,449 | $ | 14,710,925 | 2,324,522 | $ | 20,183,544 | ||||
Issued in reinvestment of distributions | 4,880 | 40,599 | 343,807 | 3,039,251 | ||||||
Redeemed | (1,946,348 | ) | (17,594,429 | ) | (4,064,261 | ) | (35,125,896 | ) | ||
(372,019 | ) | (2,842,905 | ) | (1,395,932 | ) | (11,903,101 | ) | |||
I Class/Shares Authorized | 40,000,000 | 35,000,000 | ||||||||
Sold | 550,139 | 5,547,231 | 144,305 | 1,241,192 | ||||||
Issued in reinvestment of distributions | 1,838 | 15,442 | 18,597 | 165,883 | ||||||
Redeemed | (65,539 | ) | (579,049 | ) | (113,497 | ) | (1,004,870 | ) | ||
486,438 | 4,983,624 | 49,405 | 402,205 | |||||||
A Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 301,519 | 2,688,208 | 793,313 | 6,858,283 | ||||||
Issued in reinvestment of distributions | — | — | 51,180 | 450,388 | ||||||
Redeemed | (574,403 | ) | (5,398,804 | ) | (1,357,678 | ) | (11,880,126 | ) | ||
(272,884 | ) | (2,710,596 | ) | (513,185 | ) | (4,571,455 | ) | |||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 8,422 | 77,730 | 71,416 | 602,250 | ||||||
Issued in reinvestment of distributions | — | — | 2,651 | 22,907 | ||||||
Redeemed | (27,554 | ) | (242,331 | ) | (49,685 | ) | (418,768 | ) | ||
(19,132 | ) | (164,601 | ) | 24,382 | 206,389 | |||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 8,311 | 74,609 | 16,014 | 138,491 | ||||||
Issued in reinvestment of distributions | — | — | 1,582 | 13,860 | ||||||
Redeemed | (3,843 | ) | (33,465 | ) | (11,891 | ) | (103,785 | ) | ||
4,468 | 41,144 | 5,705 | 48,566 | |||||||
Net increase (decrease) | (173,129 | ) | $ | (693,334 | ) | (1,829,625 | ) | $ | (15,817,396 | ) |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
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• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | $ | 2,392,218 | $ | 150,829,412 | — | |||
Temporary Cash Investments | 666 | 2,780,069 | — | |||||
$ | 2,392,884 | $ | 153,609,481 | — |
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.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
The fund’s investment process may result in high portfolio turnover, which could mean high transaction costs, affecting both performance and capital gains tax liabilities to investors.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 120,412,821 | |
Gross tax appreciation of investments | $ | 36,333,594 | |
Gross tax depreciation of investments | (744,050 | ) | |
Net tax appreciation (depreciation) of investments | $ | 35,589,544 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2016, the fund had late-year ordinary loss deferrals of $(191,433) and post-October capital loss deferrals of $(200,612), which represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
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9. Recently Issued Accounting Guidance
In October 2016, the Securities and Exchange Commission adopted new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other provisions. Compliance with the amendments is effective on August 1, 2017. Management is currently evaluating the impact that adopting the amendments will have on the financial statement disclosures.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||||||
2017(3) | $8.49 | 0.01 | 1.71 | 1.72 | —(4) | — | —(4) | $10.21 | 20.31% | 1.56%(5) | 1.76%(5) | 0.16%(5) | (0.04)%(5) | 67% | $126,357 | ||
2016 | $9.08 | (0.01) | (0.36) | (0.37) | (0.08) | (0.14) | (0.22) | $8.49 | (4.14)% | 1.54% | 1.74% | (0.07)% | (0.27)% | 130% | $108,184 | ||
2015 | $8.92 | (0.03) | 0.58 | 0.55 | (0.02) | (0.37) | (0.39) | $9.08 | 6.67% | 1.51% | 1.71% | (0.33)% | (0.53)% | 152% | $128,450 | ||
2014 | $9.20 | 0.01 | (0.26) | (0.25) | (0.03) | — | (0.03) | $8.92 | (2.77)% | 1.55% | 1.75% | 0.11% | (0.09)% | 128% | $123,835 | ||
2013 | $7.14 | —(4) | 2.14 | 2.14 | (0.08) | — | (0.08) | $9.20 | 30.13% | 1.72% | 1.79% | (0.04)% | (0.11)% | 123% | $137,264 | ||
2012 | $5.98 | —(4) | 1.16 | 1.16 | — | — | — | $7.14 | 19.40% | 1.87% | 1.87% | (0.04)% | (0.04)% | 127% | $99,445 | ||
I Class(6) | |||||||||||||||||
2017(3) | $8.58 | 0.02 | 1.73 | 1.75 | (0.02) | — | (0.02) | $10.31 | 20.45% | 1.36%(5) | 1.56%(5) | 0.36%(5) | 0.16%(5) | 67% | $13,038 | ||
2016 | $9.18 | 0.01 | (0.38) | (0.37) | (0.09) | (0.14) | (0.23) | $8.58 | (4.05)% | 1.34% | 1.54% | 0.13% | (0.07)% | 130% | $6,674 | ||
2015 | $9.02 | (0.01) | 0.58 | 0.57 | (0.04) | (0.37) | (0.41) | $9.18 | 6.82% | 1.31% | 1.51% | (0.13)% | (0.33)% | 152% | $6,685 | ||
2014 | $9.29 | 0.03 | (0.27) | (0.24) | (0.03) | — | (0.03) | $9.02 | (2.58)% | 1.35% | 1.55% | 0.31% | 0.11% | 128% | $4,491 | ||
2013 | $7.21 | (0.04) | 2.21 | 2.17 | (0.09) | — | (0.09) | $9.29 | 30.38% | 1.52% | 1.59% | 0.16% | 0.09% | 123% | $3,100 | ||
2012 | $6.03 | 0.01 | 1.17 | 1.18 | — | — | — | $7.21 | 19.57% | 1.67% | 1.67% | 0.16% | 0.16% | 127% | $45 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
A Class | |||||||||||||||||
2017(3) | $8.43 | (0.01) | 1.71 | 1.70 | — | — | — | $10.13 | 20.17% | 1.81%(5) | 2.01%(5) | (0.09)%(5) | (0.29)%(5) | 67% | $14,252 | ||
2016 | $9.03 | (0.03) | (0.37) | (0.40) | (0.06) | (0.14) | (0.20) | $8.43 | (4.47)% | 1.79% | 1.99% | (0.32)% | (0.52)% | 130% | $14,156 | ||
2015 | $8.88 | (0.05) | 0.58 | 0.53 | (0.01) | (0.37) | (0.38) | $9.03 | 6.48% | 1.76% | 1.96% | (0.58)% | (0.78)% | 152% | $19,796 | ||
2014 | $9.18 | (0.01) | (0.27) | (0.28) | (0.02) | — | (0.02) | $8.88 | (3.06)% | 1.80% | 2.00% | (0.14)% | (0.34)% | 128% | $14,683 | ||
2013 | $7.12 | (0.03) | 2.15 | 2.12 | (0.06) | — | (0.06) | $9.18 | 29.89% | 1.97% | 2.04% | (0.29)% | (0.36)% | 123% | $6,743 | ||
2012 | $5.98 | (0.04) | 1.18 | 1.14 | — | — | — | $7.12 | 19.06% | 2.12% | 2.12% | (0.29)% | (0.29)% | 127% | $1,931 | ||
C Class | |||||||||||||||||
2017(3) | $8.21 | (0.04) | 1.66 | 1.62 | — | — | — | $9.83 | 19.73% | 2.56%(5) | 2.76%(5) | (0.84)%(5) | (1.04)%(5) | 67% | $1,703 | ||
2016 | $8.81 | (0.09) | (0.36) | (0.45) | (0.01) | (0.14) | (0.15) | $8.21 | (5.17)% | 2.54% | 2.74% | (1.07)% | (1.27)% | 130% | $1,579 | ||
2015 | $8.73 | (0.12) | 0.57 | 0.45 | —(4) | (0.37) | (0.37) | $8.81 | 5.59% | 2.51% | 2.71% | (1.33)% | (1.53)% | 152% | $1,479 | ||
2014 | $9.07 | (0.08) | (0.26) | (0.34) | — | — | — | $8.73 | (3.75)% | 2.55% | 2.75% | (0.89)% | (1.09)% | 128% | $713 | ||
2013 | $7.04 | (0.09) | 2.12 | 2.03 | — | — | — | $9.07 | 29.02% | 2.72% | 2.79% | (1.04)% | (1.11)% | 123% | $425 | ||
2012 | $5.95 | (0.06) | 1.15 | 1.09 | — | — | — | $7.04 | 18.15% | 2.87% | 2.87% | (1.04)% | (1.04)% | 127% | $123 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
R Class | |||||||||||||||||
2017(3) | $8.37 | (0.01) | 1.69 | 1.68 | — | — | — | $10.05 | 20.07% | 2.06%(5) | 2.26%(5) | (0.34)%(5) | (0.54)%(5) | 67% | $835 | ||
2016 | $8.97 | (0.05) | (0.37) | (0.42) | (0.04) | (0.14) | (0.18) | $8.37 | (4.69)% | 2.04% | 2.24% | (0.57)% | (0.77)% | 130% | $658 | ||
2015 | $8.85 | (0.07) | 0.57 | 0.50 | (0.01) | (0.37) | (0.38) | $8.97 | 6.09% | 2.01% | 2.21% | (0.83)% | (1.03)% | 152% | $654 | ||
2014 | $9.15 | (0.04) | (0.25) | (0.29) | (0.01) | — | (0.01) | $8.85 | (3.15)% | 2.05% | 2.25% | (0.39)% | (0.59)% | 128% | $583 | ||
2013 | $7.10 | (0.03) | 2.12 | 2.09 | (0.04) | — | (0.04) | $9.15 | 29.50% | 2.22% | 2.29% | (0.54)% | (0.61)% | 123% | $623 | ||
2012 | $5.98 | (0.03) | 1.15 | 1.12 | — | — | — | $7.10 | 18.73% | 2.37% | 2.37% | (0.54)% | (0.54)% | 127% | $109 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2017 (unaudited). |
(4) | Per-share amount was less than $0.005. |
(5) | Annualized. |
(6) | Prior to April 10, 2017, the I Class was referred to as the Institutional Class. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
Distributions you receive from 403(b), 457 and qualified plans are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on the "About Us" page of 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 fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s 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 fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
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Notes |
23
Notes |
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![]() | ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2017 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92635 1707 |
![acihorizblkb99.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/acihorizblkb99.jpg)
Semiannual Report | |
May 31, 2017 | |
International Value Fund |
Table of Contents |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2017. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, we encourage you to visit our website, americancentury.com.
“Risk-On” Sentiment Generally Prevailed Among Investors
Optimism surrounding President Trump’s aggressive pro-growth agenda, along with improving global economic data, upbeat corporate earnings reports in the U.S. and Europe, and continued accommodative central bank policies, triggered rallies among higher-risk assets during the six-month period. In addition, moderate candidate Emmanuel Macron’s victory in France’s presidential election helped ease political uncertainty in Europe, which further aided financial market performance. Global equity markets soared, including the S&P 500 Index, the MSCI EAFE Index, and the MSCI Emerging Markets Index, which gained 10.81%, 17.91%, and 17.51%, respectively. Within these indices, growth stocks significantly outperformed their value counterparts, as investors generally favored companies expected to perform well as economic fundamentals improve.
A similar pattern prevailed within the global fixed-income markets, where higher-risk and higher-yielding sectors were top performers. Meanwhile, yields on short-maturity U.S. Treasuries increased as the Federal Reserve (the Fed) raised its interest rate target twice during the reporting period. However, yields on longer-maturity U.S. Treasuries declined, largely due to waning U.S. economic growth and inflation expectations as the reporting period unfolded. Outside the U.S., ongoing central bank stimulus programs helped keep government bond yields low. Overall, returns among broad U.S. and global fixed-income indices were positive.
Late in the reporting period, investor optimism toward President Trump’s policy agenda faded as health care and tax reform remained stalled. Further delays to these and other pro-growth proposals, combined with the Fed’s efforts to normalize U.S. monetary policy, may impede future risk-on sentiment. Meanwhile, as the Fed continues to tighten, central banks in Europe, the U.K., and Japan remain extremely accommodative. In this environment, we continue to believe in a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Fund Characteristics |
MAY 31, 2017 | |
Top Ten Holdings | % of net assets |
HSBC Holdings plc | 3.4% |
Royal Dutch Shell plc, B Shares | 2.6% |
Allianz SE | 2.2% |
BNP Paribas SA | 2.1% |
ING Groep NV | 2.0% |
Toyota Motor Corp. | 1.7% |
Australia & New Zealand Banking Group Ltd. | 1.7% |
Siemens AG | 1.6% |
Zurich Insurance Group AG | 1.6% |
Banco Santander SA | 1.6% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 99.1% |
Other Assets and Liabilities | 0.9% |
Investments by Country | % of net assets |
Japan | 20.5% |
United Kingdom | 16.1% |
Germany | 10.9% |
France | 10.6% |
Switzerland | 6.9% |
Australia | 6.8% |
Sweden | 5.3% |
Spain | 5.2% |
Netherlands | 2.4% |
Other Countries | 14.4% |
Other Assets and Liabilities | 0.9% |
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Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2016 to May 31, 2017.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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Beginning Account Value 12/1/16 | Ending Account Value 5/31/17 | Expenses Paid During Period(1) 12/1/16 - 5/31/17 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,150.40 | $6.97 | 1.30% |
I Class | $1,000 | $1,151.60 | $5.90 | 1.10% |
A Class | $1,000 | $1,150.70 | $8.31 | 1.55% |
C Class | $1,000 | $1,145.50 | $12.30 | 2.30% |
R Class | $1,000 | $1,148.20 | $9.64 | 1.80% |
R6 Class | $1,000 | $1,152.20 | $5.10 | 0.95% |
Hypothetical | ||||
Investor Class | $1,000 | $1,018.45 | $6.54 | 1.30% |
I Class | $1,000 | $1,019.45 | $5.54 | 1.10% |
A Class | $1,000 | $1,017.20 | $7.80 | 1.55% |
C Class | $1,000 | $1,013.46 | $11.55 | 2.30% |
R Class | $1,000 | $1,015.96 | $9.05 | 1.80% |
R6 Class | $1,000 | $1,020.20 | $4.78 | 0.95% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 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 |
MAY 31, 2017 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 99.1% | |||||
Australia — 6.8% | |||||
Australia & New Zealand Banking Group Ltd. | 73,008 | $ | 1,519,504 | ||
BWP Trust | 22,510 | 50,847 | |||
CIMIC Group Ltd. | 2,759 | 83,028 | |||
Commonwealth Bank of Australia | 9,993 | 591,425 | |||
Dexus | 19,760 | 152,553 | |||
Downer EDI Ltd. | 103,398 | 491,711 | |||
Fortescue Metals Group Ltd. | 120,143 | 432,971 | |||
Mirvac Group | 26,012 | 44,068 | |||
National Australia Bank Ltd. | 22,872 | 511,891 | |||
Qantas Airways Ltd. | 215,577 | 802,525 | |||
Regis Resources Ltd. | 51,405 | 124,903 | |||
Scentre Group | 78,874 | 249,667 | |||
Telstra Corp. Ltd. | 92,741 | 303,209 | |||
Westpac Banking Corp. | 38,812 | 879,598 | |||
6,237,900 | |||||
Austria — 0.8% | |||||
OMV AG | 13,677 | 712,969 | |||
Belgium — 1.3% | |||||
KBC Group NV | 15,455 | 1,162,864 | |||
China — 1.7% | |||||
China CITIC Bank Corp. Ltd., H Shares | 359,000 | 221,595 | |||
China Construction Bank Corp., H Shares | 572,000 | 472,718 | |||
Country Garden Holdings Co. Ltd. | 570,000 | 673,682 | |||
Industrial & Commercial Bank of China Ltd., H Shares | 280,000 | 187,205 | |||
1,555,200 | |||||
Denmark — 1.6% | |||||
H Lundbeck A/S | 3,706 | 197,741 | |||
TDC A/S | 53,052 | 316,720 | |||
Vestas Wind Systems A/S | 10,186 | 905,309 | |||
1,419,770 | |||||
Finland — 0.6% | |||||
UPM-Kymmene Oyj | 20,633 | 581,769 | |||
France — 10.6% | |||||
AXA SA | 30,504 | 813,490 | |||
BNP Paribas SA | 26,675 | 1,882,423 | |||
Cie Generale des Etablissements Michelin, Class B | 844 | 106,188 | |||
CNP Assurances | 45,764 | 1,006,588 | |||
Engie SA | 29,599 | 451,702 | |||
Faurecia | 11,670 | 612,606 | |||
Metropole Television SA | 4,281 | 101,952 | |||
Orange SA | 29,116 | 511,544 | |||
Peugeot SA | 44,088 | 869,185 | |||
Sanofi | 6,052 | 599,425 | |||
Schneider Electric SE | 1,679 | 129,311 | |||
SCOR SE | 2,842 | 111,883 |
6
Shares | Value | ||||
Societe Generale SA | 26,409 | $ | 1,384,537 | ||
TOTAL SA | 13,691 | 727,002 | |||
Valeo SA | 4,661 | 324,471 | |||
9,632,307 | |||||
Germany — 10.9% | |||||
Allianz SE | 10,388 | 1,994,293 | |||
BASF SE | 3,773 | 355,347 | |||
Covestro AG | 3,166 | 236,793 | |||
Daimler AG | 872 | 63,289 | |||
Deutsche Lufthansa AG | 49,754 | 966,637 | |||
Deutsche Telekom AG | 17,776 | 353,945 | |||
Deutsche Wohnen AG | 15,253 | 598,249 | |||
E.ON SE | 83,760 | 732,787 | |||
Grand City Properties SA | 4,291 | 88,910 | |||
Hannover Rueck SE | 6,262 | 745,648 | |||
METRO AG | 4,458 | 149,235 | |||
Muenchener Rueckversicherungs-Gesellschaft AG | 1,236 | 244,022 | |||
ProSiebenSat.1 Media SE | 19,574 | 831,053 | |||
RTL Group SA | 4,018 | 312,703 | |||
Schaeffler AG Preference Shares | 22,862 | 377,654 | |||
Siemens AG | 10,341 | 1,475,883 | |||
Uniper SE(1) | 21,626 | 421,615 | |||
9,948,063 | |||||
Hong Kong — 1.9% | |||||
BOC Hong Kong Holdings Ltd. | 183,000 | 825,461 | |||
Kerry Properties Ltd. | 26,500 | 93,689 | |||
New World Development Co. Ltd. | 105,000 | 130,702 | |||
PCCW Ltd. | 509,000 | 296,547 | |||
Wharf Holdings Ltd. (The) | 9,000 | 76,573 | |||
Wheelock & Co. Ltd. | 43,000 | 321,705 | |||
1,744,677 | |||||
India — 0.3% | |||||
Tata Power Co. Ltd. (The) | 138,787 | 174,237 | |||
Yes Bank Ltd. | 3,338 | 74,052 | |||
248,289 | |||||
Ireland — 0.6% | |||||
CRH plc | 3,569 | 128,516 | |||
Smurfit Kappa Group plc | 13,834 | 389,365 | |||
517,881 | |||||
Israel — 0.1% | |||||
Tower Semiconductor Ltd.(1) | 2,858 | 73,988 | |||
Italy — 0.9% | |||||
Enel SpA | 62,147 | 332,169 | |||
Fiat Chrysler Automobiles NV(1) | 26,297 | 276,058 | |||
UnipolSai Assicurazioni SpA | 95,547 | 216,383 | |||
824,610 | |||||
Japan — 20.5% | |||||
Bridgestone Corp. | 23,500 | 987,106 | |||
Brother Industries Ltd. | 14,200 | 315,157 | |||
Canon, Inc. | 11,800 | 402,745 | |||
Dai-ichi Life Holdings, Inc. | 8,200 | 136,568 |
7
Shares | Value | ||||
Daiwa House Industry Co. Ltd. | 6,100 | $ | 199,331 | ||
Daiwa Securities Group, Inc. | 67,000 | 407,445 | |||
Furukawa Electric Co. Ltd. | 4,000 | 178,962 | |||
Hitachi Chemical Co. Ltd. | 14,800 | 408,253 | |||
Hitachi Construction Machinery Co. Ltd. | 8,600 | 199,489 | |||
Honda Motor Co. Ltd. | 13,500 | 379,950 | |||
Japan Airlines Co. Ltd. | 9,200 | 269,562 | |||
JXTG Holdings, Inc. | 241,400 | 1,051,480 | |||
KDDI Corp. | 13,600 | 376,502 | |||
Leopalace21 Corp. | 61,900 | 364,413 | |||
Maeda Corp. | 7,000 | 75,657 | |||
Miraca Holdings, Inc. | 13,000 | 546,411 | |||
Mitsubishi Chemical Holdings Corp. | 85,000 | 643,544 | |||
Mitsubishi UFJ Financial Group, Inc. | 192,100 | 1,198,392 | |||
Mitsui Chemicals, Inc. | 40,000 | 198,646 | |||
Mixi, Inc. | 700 | 43,928 | |||
Mizuho Financial Group, Inc. | 497,100 | 865,380 | |||
Nichias Corp. | 11,000 | 130,709 | |||
Nippon Telegraph & Telephone Corp. | 16,800 | 805,186 | |||
NSK Ltd. | 28,500 | 339,684 | |||
NTT DOCOMO, Inc. | 33,900 | 831,660 | |||
Oracle Corp. Japan(1) | 1,500 | 88,307 | |||
ORIX Corp. | 30,400 | 479,812 | |||
SBI Holdings, Inc. | 26,700 | 345,714 | |||
Sega Sammy Holdings, Inc. | 25,000 | 317,156 | |||
Sompo Holdings, Inc. | 4,100 | 158,225 | |||
Subaru Corp. | 27,900 | 943,436 | |||
Sumitomo Corp. | 13,800 | 176,004 | |||
Sumitomo Mitsui Financial Group, Inc. | 18,400 | 660,240 | |||
Suzuki Motor Corp. | 14,500 | 682,776 | |||
Toshiba Plant Systems & Services Corp. | 9,700 | 144,339 | |||
Tosoh Corp. | 78,000 | 662,736 | |||
Toyota Boshoku Corp. | 19,500 | 376,266 | |||
Toyota Motor Corp. | 29,400 | 1,574,725 | |||
Toyota Tsusho Corp. | 13,200 | 404,641 | |||
TS Tech Co. Ltd. | 10,900 | 306,578 | |||
18,677,115 | |||||
Netherlands — 2.4% | |||||
ING Groep NV | 106,375 | 1,779,300 | |||
NN Group NV | 10,069 | 361,952 | |||
2,141,252 | |||||
Norway — 0.8% | |||||
Subsea 7 SA | 51,352 | 738,436 | |||
Portugal — 0.9% | |||||
EDP - Energias de Portugal SA | 194,843 | 716,603 | |||
Galp Energia SGPS SA | 8,537 | 131,671 | |||
848,274 | |||||
Singapore — 0.4% | |||||
Oversea-Chinese Banking Corp. Ltd. | 22,400 | 169,823 | |||
United Overseas Bank Ltd. | 13,700 | 227,533 | |||
397,356 |
8
Shares | Value | ||||
South Korea — 1.6% | |||||
Hyundai Development Co-Engineering & Construction | 6,959 | $ | 319,482 | ||
LG Uplus Corp. | 20,719 | 299,793 | |||
Lotte Chemical Corp. | 350 | 112,697 | |||
Samsung Electronics Co. Ltd. | 138 | 275,482 | |||
SK Innovation Co. Ltd. | 3,251 | 490,728 | |||
1,498,182 | |||||
Spain — 5.2% | |||||
Banco Santander SA | 221,136 | 1,436,075 | |||
Endesa SA | 41,933 | 1,046,447 | |||
Mapfre SA | 169,242 | 601,913 | |||
Repsol SA | 43,390 | 726,989 | |||
Telefonica SA | 83,193 | 926,511 | |||
4,737,935 | |||||
Sweden — 5.3% | |||||
Axfood AB | 4,491 | 75,131 | |||
Boliden AB | 11,340 | 310,397 | |||
Electrolux AB, Series B | 33,724 | 1,082,952 | |||
Fabege AB | 21,392 | 401,928 | |||
Industrivarden AB, C Shares | 12,371 | 292,358 | |||
Intrum Justitia AB | 3,776 | 127,816 | |||
Investor AB, B Shares | 3,370 | 155,794 | |||
Kinnevik AB, B Shares | 11,987 | 344,243 | |||
L E Lundbergforetagen AB, B Shares | 1,297 | 101,848 | |||
NCC AB, B Shares | 10,267 | 287,052 | |||
Peab AB | 19,757 | 234,363 | |||
Sandvik AB | 63,427 | 993,943 | |||
SKF AB, B Shares | 19,094 | 390,606 | |||
4,798,431 | |||||
Switzerland — 6.9% | |||||
ABB Ltd. | 17,021 | 427,568 | |||
dormakaba Holding AG | 129 | 116,474 | |||
Julius Baer Group Ltd. | 9,521 | 492,982 | |||
Logitech International SA | 4,811 | 175,839 | |||
Nestle SA | 2,510 | 214,188 | |||
Pargesa Holding SA | 1,178 | 91,584 | |||
Roche Holding AG | 3,437 | 943,219 | |||
Swiss Re AG | 13,545 | 1,234,860 | |||
Swisscom AG | 1,274 | 610,857 | |||
UBS Group AG | 34,114 | 542,414 | |||
Zurich Insurance Group AG | 4,978 | 1,463,256 | |||
6,313,241 | |||||
Taiwan — 0.9% | |||||
Lite-On Technology Corp. | 60,000 | 100,735 | |||
Quanta Computer, Inc. | 201,000 | 459,749 | |||
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 6,900 | 243,984 | |||
804,468 | |||||
United Kingdom — 16.1% | |||||
3i Group plc | 91,984 | 1,060,726 | |||
AA plc | 28,562 | 85,930 | |||
Anglo American plc(1) | 18,654 | 247,919 |
9
Shares | Value | ||||
AstraZeneca plc | 2,934 | $ | 197,862 | ||
Barclays plc | 139,998 | 378,799 | |||
BHP Billiton plc | 6,814 | 102,984 | |||
BP plc | 120,341 | 723,634 | |||
Centamin plc | 35,940 | 77,101 | |||
Centrica plc | 295,550 | 774,170 | |||
Evraz plc(1) | 82,235 | 201,316 | |||
Firstgroup plc(1) | 44,014 | 84,951 | |||
G4S plc | 131,163 | 549,240 | |||
GlaxoSmithKline plc | 44,427 | 975,117 | |||
Glencore plc | 16,207 | 59,534 | |||
HSBC Holdings plc | 358,951 | 3,124,587 | |||
Imperial Brands plc | 10,755 | 502,881 | |||
Indivior plc | 32,548 | 136,587 | |||
Investec plc | 33,763 | 264,492 | |||
Kier Group plc | 3,701 | 59,893 | |||
Legal & General Group plc | 43,621 | 141,520 | |||
Lloyds Banking Group plc | 324,066 | 294,744 | |||
Marks & Spencer Group plc | 48,450 | 238,777 | |||
Petrofac Ltd. | 22,533 | 110,324 | |||
Rio Tinto plc | 30,592 | 1,222,890 | |||
Royal Dutch Shell plc, B Shares | 86,161 | 2,379,589 | |||
Royal Mail plc | 70,811 | 402,718 | |||
Vedanta Resources plc | 32,776 | 258,238 | |||
14,656,523 | |||||
TOTAL INVESTMENT SECURITIES — 99.1% (Cost $86,062,924) | 90,271,500 | ||||
OTHER ASSETS AND LIABILITIES — 0.9% | 793,137 | ||||
TOTAL NET ASSETS — 100.0% | $ | 91,064,637 |
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Financials | 37.1 | % |
Consumer Discretionary | 11.9 | % |
Industrials | 11.8 | % |
Energy | 8.5 | % |
Materials | 7.3 | % |
Telecommunication Services | 6.2 | % |
Utilities | 5.1 | % |
Health Care | 3.9 | % |
Real Estate | 3.8 | % |
Information Technology | 2.4 | % |
Consumer Staples | 1.1 | % |
Other Assets and Liabilities | 0.9 | % |
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
(1) | Non-income producing. |
See Notes to Financial Statements.
10
Statement of Assets and Liabilities |
MAY 31, 2017 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $86,062,924) | $ | 90,271,500 | |
Foreign currency holdings, at value (cost of $52,011) | 52,619 | ||
Receivable for investments sold | 164,167 | ||
Receivable for capital shares sold | 9,926 | ||
Dividends and interest receivable | 841,803 | ||
91,340,015 | |||
Liabilities | |||
Disbursements in excess of demand deposit cash | 137,823 | ||
Payable for investments purchased | 521 | ||
Payable for capital shares redeemed | 44,830 | ||
Accrued management fees | 82,903 | ||
Distribution and service fees payable | 6,147 | ||
Accrued foreign taxes | 3,154 | ||
275,378 | |||
Net Assets | $ | 91,064,637 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 93,568,269 | |
Undistributed net investment income | 1,480,870 | ||
Accumulated net realized loss | (8,194,238 | ) | |
Net unrealized appreciation | 4,209,736 | ||
$ | 91,064,637 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $16,982,439 | 2,035,698 | $8.34 | |||
I Class, $0.01 Par Value | $7,241,982 | 868,349 | $8.34 | |||
A Class, $0.01 Par Value | $9,657,456 | 1,153,007 | $8.38* | |||
C Class, $0.01 Par Value | $4,533,855 | 546,356 | $8.30 | |||
R Class, $0.01 Par Value | $519,655 | 62,371 | $8.33 | |||
R6 Class, $0.01 Par Value | $52,129,250 | 6,248,416 | $8.34 |
*Maximum offering price $8.89 (net asset value divided by 0.9425).
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $204,234) | $ | 2,026,889 | |
Interest | 976 | ||
2,027,865 | |||
Expenses: | |||
Management fees | 473,409 | ||
Distribution and service fees: | |||
A Class | 13,622 | ||
C Class | 20,677 | ||
R Class | 1,218 | ||
Directors' fees and expenses | 1,190 | ||
Other expenses | 1,657 | ||
511,773 | |||
Net investment income (loss) | 1,516,092 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions (net of foreign tax expenses paid (refunded) of $1,505) | 2,267,286 | ||
Foreign currency transactions | (70,456 | ) | |
2,196,830 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $(3,154)) | 8,080,614 | ||
Translation of assets and liabilities in foreign currencies | 23,826 | ||
8,104,440 | |||
Net realized and unrealized gain (loss) | 10,301,270 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 11,817,362 |
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2016 | ||||||
Increase (Decrease) in Net Assets | May 31, 2017 | November 30, 2016 | ||||
Operations | ||||||
Net investment income (loss) | $ | 1,516,092 | $ | 1,961,451 | ||
Net realized gain (loss) | 2,196,830 | (4,134,276 | ) | |||
Change in net unrealized appreciation (depreciation) | 8,104,440 | (587,266 | ) | |||
Net increase (decrease) in net assets resulting from operations | 11,817,362 | (2,760,091 | ) | |||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (303,253 | ) | (460,998 | ) | ||
I Class | (197,608 | ) | (145,691 | ) | ||
A Class | (192,998 | ) | (329,220 | ) | ||
C Class | (48,855 | ) | (57,981 | ) | ||
R Class | (6,975 | ) | (7,725 | ) | ||
R6 Class | (1,271,342 | ) | (823,525 | ) | ||
Decrease in net assets from distributions | (2,021,031 | ) | (1,825,140 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 21,525,171 | (14,577,219 | ) | |||
Redemption Fees | ||||||
Increase in net assets from redemption fees | 4,261 | 12,179 | ||||
Net increase (decrease) in net assets | 31,325,763 | (19,150,271 | ) | |||
Net Assets | ||||||
Beginning of period | 59,738,874 | 78,889,145 | ||||
End of period | $ | 91,064,637 | $ | 59,738,874 | ||
Undistributed net investment income | $ | 1,480,870 | $ | 1,985,809 |
See Notes to Financial Statements.
13
Notes to Financial Statements |
MAY 31, 2017 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. International Value Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek long-term capital growth.
The fund offers the Investor Class, I Class (formerly Institutional Class), A Class, C Class, R Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. If significant fluctuations in foreign markets are identified, the
14
fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund 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 Fees — The fund 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 fund and helps cover
15
transaction costs that long-term investors may bear when the 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 fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Strategic Asset Allocations, Inc. own, in aggregate, 6% of the shares of the fund.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account the 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 use very similar investment teams and strategies (strategy assets). The strategy assets of the fund also include the assets of NT International Value Fund, one fund in a series issued by the corporation.
The management fee schedule range and the effective annual management fee for each class for the period ended May 31, 2017 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |
Investor Class | 1.100% to 1.300% | 1.29% |
I Class | 0.900% to 1.100% | 1.09% |
A Class | 1.100% to 1.300% | 1.29% |
C Class | 1.100% to 1.300% | 1.29% |
R Class | 1.100% to 1.300% | 1.29% |
R6 Class | 0.750% to 0.950% | 0.94% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2017 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Acquired Fund Fees and Expenses — The fund may invest in mutual funds, exchange-traded funds, and business development companies (the acquired funds). The fund will indirectly realize its pro rata share of the
16
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.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. There were no interfund transactions during the period.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2017 were $55,751,279 and $34,353,552, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2017 | Year ended November 30, 2016 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 45,000,000 | 40,000,000 | ||||||||
Sold | 514,535 | $ | 4,135,937 | 401,530 | $ | 2,846,272 | ||||
Issued in reinvestment of distributions | 37,544 | 294,211 | 60,843 | 452,063 | ||||||
Redeemed | (383,500 | ) | (3,038,319 | ) | (1,269,793 | ) | (9,218,798 | ) | ||
168,579 | 1,391,829 | (807,420 | ) | (5,920,463 | ) | |||||
I Class/Shares Authorized | 45,000,000 | 40,000,000 | ||||||||
Sold | 344,764 | 2,725,990 | 781,879 | 5,594,122 | ||||||
Issued in reinvestment of distributions | 25,255 | 197,608 | 19,608 | 145,691 | ||||||
Redeemed | (487,402 | ) | (3,982,540 | ) | (810,595 | ) | (5,951,079 | ) | ||
(117,383 | ) | (1,058,942 | ) | (9,108 | ) | (211,266 | ) | |||
A Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 86,588 | 685,906 | 213,147 | 1,608,740 | ||||||
Issued in reinvestment of distributions | 24,285 | 191,871 | 43,886 | 327,831 | ||||||
Redeemed | (445,842 | ) | (3,600,147 | ) | (659,017 | ) | (4,756,597 | ) | ||
(334,969 | ) | (2,722,370 | ) | (401,984 | ) | (2,820,026 | ) | |||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 63,615 | 502,722 | 104,947 | 761,997 | ||||||
Issued in reinvestment of distributions | 6,082 | 48,354 | 7,683 | 57,085 | ||||||
Redeemed | (38,416 | ) | (301,966 | ) | (47,991 | ) | (345,801 | ) | ||
31,281 | 249,110 | 64,639 | 473,281 | |||||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 5,934 | 46,225 | 49,496 | 360,384 | ||||||
Issued in reinvestment of distributions | 878 | 6,952 | 1,035 | 7,694 | ||||||
Redeemed | (5,266 | ) | (41,409 | ) | (39,342 | ) | (286,029 | ) | ||
1,546 | 11,768 | 11,189 | 82,049 | |||||||
R6 Class/Shares Authorized | 80,000,000 | 40,000,000 | ||||||||
Sold | 4,078,361 | 31,509,664 | 1,603,014 | 11,465,579 | ||||||
Issued in reinvestment of distributions | 163,023 | 1,271,342 | 110,838 | 823,525 | ||||||
Redeemed | (1,145,066 | ) | (9,127,230 | ) | (2,565,732 | ) | (18,469,898 | ) | ||
3,096,318 | 23,653,776 | (851,880 | ) | (6,180,794 | ) | |||||
Net increase (decrease) | 2,845,372 | $ | 21,525,171 | (1,994,564 | ) | $ | (14,577,219 | ) |
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6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | $ | 243,984 | $ | 90,027,516 | — |
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.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 86,124,457 | |
Gross tax appreciation of investments | $ | 7,751,253 | |
Gross tax depreciation of investments | (3,604,210 | ) | |
Net tax appreciation (depreciation) of investments | $ | 4,147,043 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2016, the fund had accumulated short-term capital losses of $(8,530,912) and accumulated long-term capital losses of $(1,796,864), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. Any unlimited losses will be required to be utilized prior to the losses which carry an expiration date. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations. Capital loss carryovers of $(2,258,267) expire in 2017 and the remaining losses are unlimited.
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9. Recently Issued Accounting Guidance
In October 2016, the Securities and Exchange Commission adopted new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other provisions. Compliance with the amendments is effective on August 1, 2017. Management is currently evaluating the impact that adopting the amendments will have on the financial statement disclosures.
19
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2017(3) | $7.40 | 0.13 | 0.97 | 1.10 | (0.16) | $8.34 | 15.04% | 1.30%(4) | 3.30%(4) | 41% | $16,982 | ||
2016 | $7.83 | 0.20 | (0.45) | (0.25) | (0.18) | $7.40 | (3.15)% | 1.31% | 2.86% | 76% | $13,810 | ||
2015 | $8.91 | 0.22 | (0.97) | (0.75) | (0.33) | $7.83 | (8.56)% | 1.31% | 2.70% | 77% | $20,945 | ||
2014 | $8.97 | 0.32 | (0.19) | 0.13 | (0.19) | $8.91 | 1.38% | 1.30% | 3.55% | 89% | $19,068 | ||
2013 | $7.40 | 0.21 | 1.60 | 1.81 | (0.24) | $8.97 | 24.96% | 1.31% | 2.63% | 83% | $17,920 | ||
2012 | $6.84 | 0.20 | 0.49 | 0.69 | (0.13) | $7.40 | 10.25% | 1.31% | 2.95% | 125% | $10,423 | ||
I Class(5) | |||||||||||||
2017(3) | $7.41 | 0.13 | 0.98 | 1.11 | (0.18) | $8.34 | 15.16% | 1.10%(4) | 3.50%(4) | 41% | $7,242 | ||
2016 | $7.84 | 0.22 | (0.45) | (0.23) | (0.20) | $7.41 | (2.99)% | 1.11% | 3.06% | 76% | $7,300 | ||
2015 | $8.92 | 0.28 | (1.01) | (0.73) | (0.35) | $7.84 | (8.37)% | 1.11% | 2.90% | 77% | $7,798 | ||
2014 | $8.96 | 0.38 | (0.23) | 0.15 | (0.19) | $8.92 | 1.67% | 1.10% | 3.75% | 89% | $513 | ||
2013 | $7.39 | 0.23 | 1.59 | 1.82 | (0.25) | $8.96 | 25.24% | 1.11% | 2.83% | 83% | $769 | ||
2012 | $6.84 | 0.23 | 0.47 | 0.70 | (0.15) | $7.39 | 10.33% | 1.11% | 3.15% | 125% | $235 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
A Class | |||||||||||||
2017(3) | $7.41 | 0.11 | 1.00 | 1.11 | (0.14) | $8.38 | 15.07% | 1.55%(4) | 3.05%(4) | 41% | $9,657 | ||
2016 | $7.85 | 0.18 | (0.45) | (0.27) | (0.17) | $7.41 | (3.46)% | 1.56% | 2.61% | 76% | $11,029 | ||
2015 | $8.93 | 0.20 | (0.97) | (0.77) | (0.31) | $7.85 | (8.77)% | 1.56% | 2.45% | 77% | $14,838 | ||
2014 | $9.01 | 0.30 | (0.20) | 0.10 | (0.18) | $8.93 | 1.08% | 1.55% | 3.30% | 89% | $15,423 | ||
2013 | $7.43 | 0.20 | 1.60 | 1.80 | (0.22) | $9.01 | 24.67% | 1.56% | 2.38% | 83% | $15,554 | ||
2012 | $6.87 | 0.19 | 0.48 | 0.67 | (0.11) | $7.43 | 9.91% | 1.56% | 2.70% | 125% | $14,155 | ||
C Class | |||||||||||||
2017(3) | $7.33 | 0.09 | 0.97 | 1.06 | (0.09) | $8.30 | 14.55% | 2.30%(4) | 2.30%(4) | 41% | $4,534 | ||
2016 | $7.78 | 0.13 | (0.46) | (0.33) | (0.12) | $7.33 | (4.21)% | 2.31% | 1.86% | 76% | $3,774 | ||
2015 | $8.85 | 0.13 | (0.95) | (0.82) | (0.25) | $7.78 | (9.39)% | 2.31% | 1.70% | 77% | $3,502 | ||
2014 | $8.97 | 0.23 | (0.19) | 0.04 | (0.16) | $8.85 | 0.41% | 2.30% | 2.55% | 89% | $2,301 | ||
2013 | $7.40 | 0.14 | 1.59 | 1.73 | (0.16) | $8.97 | 23.68% | 2.31% | 1.63% | 83% | $2,009 | ||
2012 | $6.84 | 0.13 | 0.49 | 0.62 | (0.06) | $7.40 | 9.10% | 2.31% | 1.95% | 125% | $1,412 | ||
R Class | |||||||||||||
2017(3) | $7.36 | 0.11 | 0.97 | 1.08 | (0.11) | $8.33 | 14.82% | 1.80%(4) | 2.80%(4) | 41% | $520 | ||
2016 | $7.80 | 0.18 | (0.47) | (0.29) | (0.15) | $7.36 | (3.68)% | 1.81% | 2.36% | 76% | $448 | ||
2015 | $8.87 | 0.18 | (0.96) | (0.78) | (0.29) | $7.80 | (8.95)% | 1.81% | 2.20% | 77% | $387 | ||
2014 | $8.97 | 0.28 | (0.21) | 0.07 | (0.17) | $8.87 | 0.78% | 1.80% | 3.05% | 89% | $479 | ||
2013 | $7.40 | 0.18 | 1.59 | 1.77 | (0.20) | $8.97 | 24.32% | 1.81% | 2.13% | 83% | $297 | ||
2012 | $6.84 | 0.17 | 0.49 | 0.66 | (0.10) | $7.40 | 9.67% | 1.81% | 2.45% | 125% | $283 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
R6 Class | |||||||||||||
2017(3) | $7.42 | 0.15 | 0.96 | 1.11 | (0.19) | $8.34 | 15.22% | 0.95%(4) | 3.65%(4) | 41% | $52,129 | ||
2016 | $7.85 | 0.23 | (0.45) | (0.22) | (0.21) | $7.42 | (2.87)% | 0.96% | 3.21% | 76% | $23,378 | ||
2015 | $8.93 | 0.23 | (0.95) | (0.72) | (0.36) | $7.85 | (8.22)% | 0.96% | 3.05% | 77% | $31,418 | ||
2014 | $8.96 | 0.33 | (0.17) | 0.16 | (0.19) | $8.93 | 1.83% | 0.95% | 3.90% | 89% | $562 | ||
2013(6) | $8.21 | 0.06 | 0.69 | 0.75 | — | $8.96 | 9.14% | 0.96%(4) | 2.02%(4) | 83%(7) | $27 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2017 (unaudited). |
(4) | Annualized. |
(5) | Prior to April 10, 2017, the I Class was referred to as the Institutional Class. |
(6) | July 26, 2013 (commencement of sale) through November 30, 2013. |
(7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2013. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
Distributions you receive from 403(b), 457 and qualified plans are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on the "About Us" page of 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 fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s 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 fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
23
Notes |
24
![]() | ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2017 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92632 1707 |
![acihorizblkb99.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/acihorizblkb99.jpg)
Semiannual Report | |
May 31, 2017 | |
NT Emerging Markets Fund |
Table of Contents |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Fund Characteristics |
MAY 31, 2017 | |
Top Ten Holdings | % of net assets |
Samsung Electronics Co. Ltd. | 7.0% |
Tencent Holdings Ltd. | 5.7% |
Taiwan Semiconductor Manufacturing Co. Ltd. | 4.9% |
Alibaba Group Holding Ltd. ADR | 3.9% |
Naspers Ltd., N Shares | 2.1% |
HDFC Bank Ltd. | 1.9% |
Industrial & Commercial Bank of China Ltd., H Shares | 1.8% |
Ping An Insurance Group Co. of China Ltd., H Shares | 1.6% |
Medy-Tox, Inc. | 1.6% |
TAL Education Group ADR | 1.5% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 100.3% |
Temporary Cash Investments | 0.4% |
Other Assets and Liabilities | (0.7)% |
Investments by Country | % of net assets |
China | 29.9% |
South Korea | 14.4% |
Taiwan | 9.8% |
India | 7.4% |
Brazil | 7.0% |
Indonesia | 5.3% |
South Africa | 5.3% |
Russia | 4.8% |
Thailand | 4.3% |
Hungary | 2.0% |
Other Countries | 10.1% |
Cash and Equivalents* | (0.3)% |
*Includes temporary cash investments and other assets and liabilities.
2
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2016 to May 31, 2017.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value 12/1/16 | Ending Account Value 5/31/17 | Expenses Paid During Period(1) 12/1/16 - 5/31/17 | Annualized Expense Ratio(1) | |
Actual | ||||
Institutional Class (after waiver) | $1,000 | $1,184.00 | $6.04 | 1.11% |
Institutional Class (before waiver) | $1,000 | $1,184.00(2) | $7.41 | 1.36% |
R6 Class (after waiver) | $1,000 | $1,184.60 | $5.23 | 0.96% |
R6 Class (before waiver) | $1,000 | $1,184.60(2) | $6.59 | 1.21% |
Hypothetical | ||||
Institutional Class (after waiver) | $1,000 | $1,019.40 | $5.59 | 1.11% |
Institutional Class (before waiver) | $1,000 | $1,018.15 | $6.84 | 1.36% |
R6 Class (after waiver) | $1,000 | $1,020.15 | $4.84 | 0.96% |
R6 Class (before waiver) | $1,000 | $1,018.90 | $6.09 | 1.21% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. |
(2) | Ending account value assumes the return earned after waiver and would have been lower if a portion of the fees had not been waived. |
3
Schedule of Investments |
MAY 31, 2017 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 100.3% | |||||
Argentina — 1.2% | |||||
Banco Macro SA ADR | 36,895 | $ | 3,300,996 | ||
YPF SA ADR | 93,424 | 2,303,836 | |||
5,604,832 | |||||
Brazil — 7.0% | |||||
Banco do Brasil SA | 319,600 | 2,795,062 | |||
Gerdau SA Preference Shares | 1,043,500 | 3,076,373 | |||
Itau Unibanco Holding SA ADR | 528,881 | 5,770,092 | |||
Klabin SA | 452,900 | 2,365,305 | |||
Kroton Educacional SA | 765,100 | 3,411,794 | |||
Multiplan Empreendimentos Imobiliarios SA | 203,718 | 4,035,391 | |||
Petroleo Brasileiro SA ADR(1) | 379,065 | 3,214,471 | |||
Raia Drogasil SA | 118,900 | 2,644,794 | |||
Vale SA ADR | 748,040 | 6,261,095 | |||
33,574,377 | |||||
China — 29.9% | |||||
AAC Technologies Holdings, Inc. | 392,500 | 4,160,448 | |||
Alibaba Group Holding Ltd. ADR(1) | 152,391 | 18,661,802 | |||
Anhui Conch Cement Co. Ltd., H Shares | 1,409,500 | 4,675,694 | |||
Beijing Enterprises Water Group Ltd. | 6,682,000 | 5,350,711 | |||
Brilliance China Automotive Holdings Ltd. | 3,128,000 | 5,836,488 | |||
China Gas Holdings Ltd. | 2,180,000 | 3,323,482 | |||
China Lodging Group Ltd. ADR(1) | 79,250 | 6,054,700 | |||
China Railway Construction Corp. Ltd., H Shares | 3,994,000 | 5,484,187 | |||
Ctrip.com International Ltd. ADR(1) | 93,999 | 5,137,045 | |||
Haier Electronics Group Co. Ltd. | 1,528,000 | 3,886,399 | |||
Industrial & Commercial Bank of China Ltd., H Shares | 12,946,095 | 8,655,595 | |||
Maanshan Iron & Steel Co. Ltd., H Shares(1) | 7,662,000 | 2,703,929 | |||
Momo, Inc. ADR(1) | 62,724 | 2,386,021 | |||
New Oriental Education & Technology Group, Inc. ADR(1) | 77,951 | 5,586,748 | |||
Nine Dragons Paper Holdings Ltd. | 2,299,000 | 2,726,035 | |||
Ping An Insurance Group Co. of China Ltd., H Shares | 1,226,500 | 7,861,826 | |||
Shenzhou International Group Holdings Ltd. | 730,000 | 4,997,786 | |||
Sunny Optical Technology Group Co. Ltd. | 700,000 | 5,452,644 | |||
TAL Education Group ADR | 63,362 | 7,379,772 | |||
Tencent Holdings Ltd. | 801,700 | 27,530,772 | |||
Weibo Corp. ADR(1) | 48,180 | 3,542,675 | |||
Weichai Power Co. Ltd., H Shares | 1,904,000 | 3,088,406 | |||
144,483,165 | |||||
Czech — 0.9% | |||||
Moneta Money Bank AS | 1,244,044 | 4,234,761 | |||
Egypt — 1.0% | |||||
Commercial International Bank Egypt S.A.E. | 448,568 | 2,069,361 | |||
Commercial International Bank Egypt S.A.E. GDR | 683,106 | 3,005,666 | |||
5,075,027 |
4
Shares | Value | ||||
Hungary — 2.0% | |||||
OTP Bank plc | 140,797 | $ | 4,389,676 | ||
Richter Gedeon Nyrt | 202,328 | 5,171,789 | |||
9,561,465 | |||||
India — 7.4% | |||||
Bharat Financial Inclusion Ltd.(1) | 255,186 | 2,909,801 | |||
Godrej Consumer Products Ltd. | 198,435 | 5,571,527 | |||
Havells India Ltd. | 554,022 | 4,185,219 | |||
HDFC Bank Ltd. | 365,956 | 9,317,074 | |||
Larsen & Toubro Ltd. | 134,598 | 3,673,074 | |||
Motherson Sumi Systems Ltd.(1) | 892,855 | 6,234,901 | |||
Vakrangee Ltd. | 700,169 | 3,959,883 | |||
35,851,479 | |||||
Indonesia — 5.3% | |||||
Astra International Tbk PT | 9,334,000 | 6,131,569 | |||
Bank Rakyat Indonesia Persero Tbk PT | 4,274,600 | 4,645,258 | |||
Indofood Sukses Makmur Tbk PT | 7,298,400 | 4,794,369 | |||
Telekomunikasi Indonesia Persero Tbk PT | 12,517,100 | 4,087,792 | |||
United Tractors Tbk PT | 2,878,000 | 6,001,235 | |||
25,660,223 | |||||
Malaysia — 0.9% | |||||
My EG Services Bhd | 8,604,400 | 4,261,993 | |||
Mexico — 1.5% | |||||
Alsea SAB de CV | 1,001,486 | 3,612,031 | |||
Cemex SAB de CV ADR(1) | 430,927 | 3,563,766 | |||
7,175,797 | |||||
Peru — 0.5% | |||||
Credicorp Ltd. | 15,264 | 2,557,025 | |||
Philippines — 1.0% | |||||
Ayala Land, Inc. | 5,975,600 | 4,730,058 | |||
Poland — 0.3% | |||||
KRUK SA | 19,132 | 1,547,511 | |||
Russia — 4.8% | |||||
Novatek PJSC GDR | 28,716 | 3,227,678 | |||
Sberbank of Russia PJSC ADR | 611,179 | 6,814,646 | |||
TMK PJSC | 1,738,764 | 2,513,421 | |||
X5 Retail Group NV GDR(1) | 152,973 | 5,537,623 | |||
Yandex NV, A Shares(1) | 187,971 | 4,977,472 | |||
23,070,840 | |||||
South Africa — 5.3% | |||||
Capitec Bank Holdings Ltd. | 84,103 | 4,994,108 | |||
Discovery Ltd. | 487,424 | 4,761,629 | |||
Naspers Ltd., N Shares | 48,929 | 10,131,120 | |||
Sappi Ltd. | 760,497 | 5,602,106 | |||
25,488,963 | |||||
South Korea — 14.4% | |||||
CJ Korea Express Corp.(1) | 19,513 | 3,354,995 | |||
Cosmax, Inc. | 6,595 | 753,984 | |||
GS Retail Co. Ltd. | 87,948 | 4,406,826 | |||
HS Industries Co. Ltd. | 320,621 | 2,754,889 | |||
Kumho Petrochemical Co. Ltd. | 31,840 | 2,223,909 |
5
Shares | Value | ||||
LG Innotek Co. Ltd. | 20,841 | $ | 2,494,368 | ||
Medy-Tox, Inc. | 16,513 | 7,698,987 | |||
NAVER Corp. | 5,030 | 3,796,311 | |||
Samsung Electronics Co. Ltd. | 16,838 | 33,612,835 | |||
Seegene, Inc.(1) | 109,741 | 3,808,001 | |||
SK Hynix, Inc. | 87,539 | 4,456,701 | |||
69,361,806 | |||||
Taiwan — 9.8% | |||||
Airtac International Group | 304,000 | 3,355,431 | |||
ASPEED Technology, Inc. | 68,000 | 1,711,360 | |||
Hota Industrial Manufacturing Co. Ltd. | 608,517 | 3,024,479 | |||
Largan Precision Co. Ltd. | 17,000 | 2,684,597 | |||
Powertech Technology, Inc. | 1,009,000 | 3,099,558 | |||
President Chain Store Corp. | 545,000 | 4,873,998 | |||
Taiwan Paiho Ltd. | 1,519,000 | 5,075,285 | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 3,482,774 | 23,504,875 | |||
47,329,583 | |||||
Thailand — 4.3% | |||||
Airports of Thailand PCL | 2,565,300 | 3,238,635 | |||
CP ALL PCL | 1,880,100 | 3,449,978 | |||
Kasikornbank PCL | 553,400 | 3,038,338 | |||
KCE Electronics PCL | 751,500 | 2,382,912 | |||
Minor International PCL | 4,011,900 | 4,417,095 | |||
Srisawad Power 1979 PCL | 2,905,985 | 4,287,309 | |||
20,814,267 | |||||
Turkey — 1.8% | |||||
BIM Birlesik Magazalar AS | 209,262 | 3,722,098 | |||
Tofas Turk Otomobil Fabrikasi AS | 606,232 | 5,034,893 | |||
8,756,991 | |||||
United Kingdom — 1.0% | |||||
Tullow Oil plc(1) | 2,148,040 | 5,059,252 | |||
TOTAL COMMON STOCKS (Cost $382,695,774) | 484,199,415 | ||||
TEMPORARY CASH INVESTMENTS — 0.4% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.875% - 2.125%, 9/30/17 - 2/15/26, valued at $1,005,391), in a joint trading account at 0.70%, dated 5/31/17, due 6/1/17 (Delivery value $985,705) | 985,686 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 1.00%, 2/15/46, valued at $838,529), at 0.22%, dated 5/31/17, due 6/1/17 (Delivery value $821,005) | 821,000 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 1,104 | 1,104 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $1,807,790) | 1,807,790 | ||||
TOTAL INVESTMENT SECURITIES — 100.7% (Cost $384,503,564) | 486,007,205 | ||||
OTHER ASSETS AND LIABILITIES — (0.7)% | (3,323,913 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 482,683,292 |
6
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Information Technology | 31.7 | % |
Consumer Discretionary | 18.3 | % |
Financials | 17.9 | % |
Consumer Staples | 7.4 | % |
Materials | 7.0 | % |
Industrials | 5.5 | % |
Energy | 4.6 | % |
Health Care | 3.5 | % |
Real Estate | 1.8 | % |
Utilities | 1.8 | % |
Telecommunication Services | 0.8 | % |
Cash and Equivalents* | (0.3 | )% |
* Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
GDR | - | Global Depositary Receipt |
(1) | Non-income producing. |
See Notes to Financial Statements.
7
Statement of Assets and Liabilities |
MAY 31, 2017 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $384,503,564) | $ | 486,007,205 | |
Foreign currency holdings, at value (cost of $105,646) | 105,970 | ||
Receivable for capital shares sold | 37,533 | ||
Dividends and interest receivable | 741,920 | ||
Other assets | 39,698 | ||
486,932,326 | |||
Liabilities | |||
Payable for capital shares redeemed | 3,106,958 | ||
Accrued management fees | 432,505 | ||
Accrued foreign taxes | 709,571 | ||
4,249,034 | |||
Net Assets | $ | 482,683,292 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 371,649,626 | |
Distributions in excess of net investment income | (1,139,635 | ) | |
Undistributed net realized gain | 11,354,898 | ||
Net unrealized appreciation | 100,818,403 | ||
$ | 482,683,292 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Institutional Class, $0.01 Par Value | $430,105,242 | 35,671,001 | $12.06 | |||
R6 Class, $0.01 Par Value | $52,578,050 | 4,360,998 | $12.06 |
See Notes to Financial Statements.
8
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $378,960) | $ | 3,086,405 | |
Interest | 5,932 | ||
3,092,337 | |||
Expenses: | |||
Management fees | 3,071,918 | ||
Directors' fees and expenses | 6,509 | ||
Other expenses | 8,068 | ||
3,086,495 | |||
Fees waived(1) | (574,258 | ) | |
2,512,237 | |||
Net investment income (loss) | 580,100 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions (net of foreign tax expenses paid (refunded) of $21,566) | 15,960,437 | ||
Foreign currency transactions | (61,140 | ) | |
15,899,297 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $(709,571)) | 62,239,238 | ||
Translation of assets and liabilities in foreign currencies | 121,870 | ||
62,361,108 | |||
Net realized and unrealized gain (loss) | 78,260,405 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 78,840,505 |
(1) | Amount consists of $515,152 and $59,106 for the Institutional Class and R6 Class, respectively. |
See Notes to Financial Statements.
9
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2016 | ||||||
Increase (Decrease) in Net Assets | May 31, 2017 | November 30, 2016 | ||||
Operations | ||||||
Net investment income (loss) | $ | 580,100 | $ | 2,255,060 | ||
Net realized gain (loss) | 15,899,297 | 6,902,767 | ||||
Change in net unrealized appreciation (depreciation) | 62,361,108 | 20,855,213 | ||||
Net increase (decrease) in net assets resulting from operations | 78,840,505 | 30,013,040 | ||||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Institutional Class | (3,148,286 | ) | (1,209,292 | ) | ||
R6 Class | (409,550 | ) | (111,666 | ) | ||
Decrease in net assets from distributions | (3,557,836 | ) | (1,320,958 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (26,415,829 | ) | 10,227,920 | |||
Net increase (decrease) in net assets | 48,866,840 | 38,920,002 | ||||
Net Assets | ||||||
Beginning of period | 433,816,452 | 394,896,450 | ||||
End of period | $ | 482,683,292 | $ | 433,816,452 | ||
Undistributed (distributions in excess of) net investment income | $ | (1,139,635 | ) | $ | 1,838,101 |
See Notes to Financial Statements.
10
Notes to Financial Statements |
MAY 31, 2017 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. NT Emerging Markets Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital growth. The fund is not permitted to invest in securities issued by companies assigned the Global Industry Classification Standard for the tobacco industry. The fund offers the Institutional Class and the R6 Class.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. If significant fluctuations in foreign markets are identified, the fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
11
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
12
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc., and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 100% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees —The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for shareholder services, which may be provided indirectly through another American Century Investments mutual fund. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account the 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 use very similar investment teams and strategies (strategy assets). The strategy assets of the fund also include the assets of Emerging Markets Fund, one fund in a series issued by the corporation. During the period ended May 31, 2017, the investment advisor agreed to waive 0.250% of the fund's management fee. The investment advisor expects this waiver to continue until March 31, 2018 and cannot terminate it prior to such date without the approval of the Board of Directors.
The management fee schedule range and the effective annual management fee before and after waiver for each class for the period ended May 31, 2017 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | ||
Before Waiver | After Waiver | ||
Institutional Class | 1.050% to 1.650% | 1.35% | 1.10% |
R6 Class | 0.900% to 1.500% | 1.20% | 0.95% |
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Acquired Fund Fees and Expenses — The fund may invest in mutual funds, exchange-traded funds, and business development companies (the acquired funds). The 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.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $3,213 and $366,926, respectively. The effect of interfund transactions on the Statement of Operations was $97,459 in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2017 were $134,488,669 and $148,175,923, respectively.
13
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2017 | Year ended November 30, 2016 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Institutional Class/Shares Authorized | 360,000,000 | 300,000,000 | ||||||||
Sold | 2,749,963 | $ | 28,385,705 | 8,207,796 | $ | 77,497,490 | ||||
Issued in reinvestment of distributions | 316,093 | 3,148,286 | 127,027 | 1,209,292 | ||||||
Redeemed | (5,793,024 | ) | (63,347,418 | ) | (8,182,457 | ) | (83,579,731 | ) | ||
(2,726,968 | ) | (31,813,427 | ) | 152,366 | (4,872,949 | ) | ||||
R6 Class/Shares Authorized | 60,000,000 | 40,000,000 | ||||||||
Sold | 948,432 | 9,996,226 | 1,966,054 | 19,216,804 | ||||||
Issued in reinvestment of distributions | 41,161 | 409,550 | 11,730 | 111,666 | ||||||
Redeemed | (460,080 | ) | (5,008,178 | ) | (411,611 | ) | (4,227,601 | ) | ||
529,513 | 5,397,598 | 1,566,173 | 15,100,869 | |||||||
Net increase (decrease) | (2,197,455 | ) | $ | (26,415,829 | ) | 1,718,539 | $ | 10,227,920 |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | ||||||||
Argentina | $ | 5,604,832 | — | — | ||||
Brazil | 15,245,658 | $ | 18,328,719 | — | ||||
China | 48,748,763 | 95,734,402 | — | |||||
Mexico | 3,563,766 | 3,612,031 | — | |||||
Peru | 2,557,025 | — | — | |||||
Russia | 4,977,472 | 18,093,368 | — | |||||
Other Countries | — | 267,733,379 | — | |||||
Temporary Cash Investments | 1,104 | 1,806,686 | — | |||||
$ | 80,698,620 | $ | 405,308,585 | — |
14
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 period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 385,192,727 | |
Gross tax appreciation of investments | $ | 107,434,891 | |
Gross tax depreciation of investments | (6,620,413 | ) | |
Net tax appreciation (depreciation) of investments | $ | 100,814,478 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2016, the fund had accumulated short-term capital losses of $(3,473,814), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. Any unlimited losses will be required to be utilized prior to the losses which carry an expiration date. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations. Capital loss carryovers of $(1,146,451) expire in 2017 and the remaining losses are unlimited.
9. Recently Issued Accounting Guidance
In October 2016, the Securities and Exchange Commission adopted new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other provisions. Compliance with the amendments is effective on August 1, 2017. Management is currently evaluating the impact that adopting the amendments will have on the financial statement disclosures.
15
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Institutional Class | |||||||||||||||
2017(3) | $10.27 | 0.01 | 1.86 | 1.87 | (0.08) | $12.06 | 18.40% | 1.11%(4) | 1.36%(4) | 0.23%(4) | (0.02)%(4) | 30% | $430,105 | ||
2016 | $9.75 | 0.05 | 0.50 | 0.55 | (0.03) | $10.27 | 5.68% | 1.18% | 1.43% | 0.53% | 0.28% | 75% | $394,433 | ||
2015 | $10.84 | 0.05 | (1.12) | (1.07) | (0.02) | $9.75 | (9.88)% | 1.24% | 1.49% | 0.49% | 0.24% | 61% | $372,802 | ||
2014 | $10.67 | 0.05 | 0.16 | 0.21 | (0.04) | $10.84 | 2.02% | 1.25% | 1.50% | 0.45% | 0.20% | 84% | $323,641 | ||
2013 | $10.05 | 0.04 | 0.63 | 0.67 | (0.05) | $10.67 | 6.66% | 1.42% | 1.52% | 0.38% | 0.28% | 76% | $269,117 | ||
2012 | $8.94 | 0.05 | 1.07 | 1.12 | (0.01) | $10.05 | 12.51% | 1.54% | 1.54% | 0.50% | 0.50% | 101% | $169,277 | ||
R6 Class | |||||||||||||||
2017(3) | $10.28 | 0.02 | 1.86 | 1.88 | (0.10) | $12.06 | 18.46% | 0.96%(4) | 1.21%(4) | 0.38%(4) | 0.13%(4) | 30% | $52,578 | ||
2016 | $9.75 | 0.06 | 0.52 | 0.58 | (0.05) | $10.28 | 5.94% | 1.03% | 1.28% | 0.68% | 0.43% | 75% | $39,383 | ||
2015 | $10.84 | 0.07 | (1.12) | (1.05) | (0.04) | $9.75 | (9.74)% | 1.09% | 1.34% | 0.64% | 0.39% | 61% | $22,095 | ||
2014 | $10.68 | 0.06 | 0.16 | 0.22 | (0.06) | $10.84 | 2.11% | 1.10% | 1.35% | 0.60% | 0.35% | 84% | $9,993 | ||
2013(5) | $9.90 | (0.01) | 0.79 | 0.78 | — | $10.68 | 7.88% | 1.12%(4) | 1.37%(4) | (0.37)%(4) | (0.62)%(4) | 76%(6) | $2,280 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2017 (unaudited). |
(4) | Annualized. |
(5) | July 26, 2013 (commencement of sale) through November 30, 2013. |
(6) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2013. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
Distributions you receive from 403(b), 457 and qualified plans are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on the "About Us" page of 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 fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s 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 fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
18
Notes |
19
Notes |
20
![]() | ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2017 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92626 1707 |
![acihorizblkb99.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/acihorizblkb99.jpg)
Semiannual Report | |
May 31, 2017 | |
NT International Growth Fund |
Table of Contents |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Fund Characteristics |
MAY 31, 2017 | |
Top Ten Holdings | % of net assets |
Roche Holding AG | 2.8% |
Unilever NV CVA | 2.0% |
Kering | 2.0% |
Alibaba Group Holding Ltd. ADR | 2.0% |
AIA Group Ltd. | 1.9% |
Tencent Holdings Ltd. | 1.9% |
Industria de Diseno Textil SA | 1.8% |
CRH plc | 1.7% |
SAP SE | 1.6% |
KBC Group NV | 1.6% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 97.9% |
Exchange-Traded Funds | 1.2% |
Total Equity Exposure | 99.1% |
Temporary Cash Investments | 1.0% |
Other Assets and Liabilities | (0.1)% |
Investments by Country | % of net assets |
United Kingdom | 19.8% |
Japan | 15.1% |
France | 11.5% |
Germany | 8.1% |
Switzerland | 6.8% |
Netherlands | 4.1% |
China | 3.9% |
Denmark | 3.2% |
Ireland | 3.2% |
Sweden | 2.8% |
Spain | 2.6% |
Hong Kong | 2.4% |
Australia | 2.4% |
Other Countries | 12.0% |
Exchange-Traded Funds | 1.2% |
Cash and Equivalents* | 0.9% |
*Includes temporary cash investments and other assets and liabilities.
2
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2016 to May 31, 2017.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value 12/1/16 | Ending Account Value 5/31/17 | Expenses Paid During Period(1) 12/1/16 - 5/31/17 | Annualized Expense Ratio(1) | |
Actual | ||||
Institutional Class | $1,000 | $1,181.60 | $5.28 | 0.97% |
R6 Class | $1,000 | $1,183.20 | $4.46 | 0.82% |
Hypothetical | ||||
Institutional Class | $1,000 | $1,020.10 | $4.89 | 0.97% |
R6 Class | $1,000 | $1,020.84 | $4.13 | 0.82% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. |
3
Schedule of Investments |
MAY 31, 2017 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 97.9% | |||||
Australia — 2.4% | |||||
CSL Ltd. | 119,090 | $ | 11,440,853 | ||
Treasury Wine Estates Ltd. | 1,374,040 | 13,293,170 | |||
24,734,023 | |||||
Austria — 1.3% | |||||
Erste Group Bank AG | 358,594 | 13,011,291 | |||
Belgium — 1.6% | |||||
KBC Group NV | 222,050 | 16,707,473 | |||
Brazil — 0.5% | |||||
Itau Unibanco Holding SA Preference Shares | 423,100 | 4,661,232 | |||
Canada — 0.7% | |||||
Dollarama, Inc. | 73,900 | 6,845,399 | |||
China — 3.9% | |||||
Alibaba Group Holding Ltd. ADR(1) | 167,130 | 20,466,740 | |||
Tencent Holdings Ltd. | 572,300 | 19,653,063 | |||
40,119,803 | |||||
Denmark — 3.2% | |||||
AP Moller - Maersk A/S, B Shares | 5,200 | 9,902,967 | |||
Chr Hansen Holding A/S | 127,050 | 8,897,309 | |||
DSV A/S | 238,410 | 14,513,901 | |||
33,314,177 | |||||
France — 11.5% | |||||
Accor SA | 194,440 | 9,231,693 | |||
Arkema SA | 101,580 | 10,614,496 | |||
BNP Paribas SA | 220,080 | 15,530,783 | |||
Criteo SA ADR(1) | 137,360 | 7,201,785 | |||
Essilor International SA | 79,821 | 10,612,074 | |||
Kering | 63,290 | 20,930,893 | |||
L'Oreal SA | 58,040 | 12,417,187 | |||
Publicis Groupe SA | 151,590 | 11,605,163 | |||
TOTAL SA | 235,151 | 12,486,689 | |||
Valeo SA | 126,291 | 8,791,617 | |||
119,422,380 | |||||
Germany — 8.1% | |||||
adidas AG | 65,980 | 12,618,690 | |||
Deutsche Boerse AG | 91,490 | 9,504,654 | |||
Fresenius Medical Care AG & Co. KGaA | 104,040 | 9,952,927 | |||
HeidelbergCement AG | 130,100 | 12,112,726 | |||
Infineon Technologies AG | 407,380 | 9,010,736 | |||
SAP SE | 159,630 | 17,114,326 | |||
Zalando SE(1) | 292,730 | 13,978,906 | |||
84,292,965 | |||||
Hong Kong — 2.4% | |||||
AIA Group Ltd. | 2,786,000 | 19,753,033 | |||
Sands China Ltd. | 1,129,200 | 5,209,430 | |||
24,962,463 |
4
Shares | Value | ||||
India — 1.8% | |||||
HDFC Bank Ltd. | 292,870 | $ | 7,456,338 | ||
Tata Motors Ltd. | 1,594,070 | 11,764,049 | |||
19,220,387 | |||||
Indonesia — 1.9% | |||||
Astra International Tbk PT | 14,643,000 | 9,619,088 | |||
Bank Mandiri Persero Tbk PT | 10,828,300 | 10,242,986 | |||
19,862,074 | |||||
Ireland — 3.2% | |||||
CRH plc | 505,640 | 18,207,573 | |||
Ryanair Holdings plc ADR(1) | 141,334 | 15,085,991 | |||
33,293,564 | |||||
Italy — 0.8% | |||||
UniCredit SpA(1) | 475,730 | 8,320,779 | |||
Japan — 15.1% | |||||
Calbee, Inc. | 334,600 | 12,961,029 | |||
CyberAgent, Inc. | 181,100 | 6,540,858 | |||
Daikin Industries Ltd. | 116,300 | 11,398,975 | |||
Daito Trust Construction Co. Ltd. | 36,700 | 5,789,156 | |||
FANUC Corp. | 43,000 | 8,452,460 | |||
Keyence Corp. | 28,700 | 13,037,445 | |||
Komatsu Ltd. | 413,800 | 9,839,660 | |||
MonotaRO Co. Ltd. | 227,100 | 7,648,605 | |||
Nitori Holdings Co. Ltd. | 100,400 | 14,676,984 | |||
Omron Corp. | 76,391 | 3,193,592 | |||
ORIX Corp. | 767,200 | 12,108,944 | |||
Pola Orbis Holdings, Inc. | 22,700 | 635,395 | |||
Rakuten, Inc. | 659,800 | 8,018,879 | |||
Rohm Co. Ltd. | 87,000 | 6,983,567 | |||
Ryohin Keikaku Co. Ltd. | 19,300 | 5,024,099 | |||
Shin-Etsu Chemical Co. Ltd. | 105,400 | 9,452,215 | |||
Start Today Co. Ltd. | 534,700 | 13,344,567 | |||
Sysmex Corp. | 128,800 | 7,652,406 | |||
156,758,836 | |||||
Netherlands — 4.1% | |||||
ASML Holding NV | 96,120 | 12,687,220 | |||
Heineken NV | 90,760 | 8,938,412 | |||
Unilever NV CVA | 373,850 | 21,292,183 | |||
42,917,815 | |||||
Norway — 0.8% | |||||
DNB ASA | 506,400 | 8,576,550 | |||
Portugal — 1.1% | |||||
Jeronimo Martins SGPS SA | 580,310 | 11,551,506 | |||
Russia — 0.7% | |||||
Yandex NV, A Shares(1) | 285,570 | 7,561,894 | |||
Spain — 2.6% | |||||
Amadeus IT Group SA, A Shares | 56,210 | 3,273,989 | |||
CaixaBank SA | 1,045,080 | 4,935,454 | |||
Industria de Diseno Textil SA | 470,565 | 19,238,721 | |||
27,448,164 |
5
Shares | Value | ||||
Sweden — 2.8% | |||||
Hexagon AB, B Shares | 275,240 | $ | 12,056,040 | ||
Lundin Petroleum AB(1) | 484,100 | 9,401,947 | |||
Sandvik AB | 498,060 | 7,804,930 | |||
29,262,917 | |||||
Switzerland — 6.8% | |||||
Chocoladefabriken Lindt & Spruengli AG | 1,020 | 6,197,615 | |||
Cie Financiere Richemont SA | 89,860 | 7,496,452 | |||
Julius Baer Group Ltd. | 248,680 | 12,876,260 | |||
Lonza Group AG | 70,310 | 14,562,166 | |||
Roche Holding AG | 107,824 | 29,590,232 | |||
70,722,725 | |||||
Taiwan — 0.8% | |||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,307,000 | 8,820,805 | |||
United Kingdom — 19.8% | |||||
Ashtead Group plc | 441,473 | 8,907,661 | |||
ASOS plc(1) | 148,651 | 12,290,446 | |||
Associated British Foods plc | 211,230 | 8,153,896 | |||
Aviva plc | 1,972,581 | 13,343,259 | |||
Bunzl plc | 264,830 | 8,298,479 | |||
Carnival plc | 108,820 | 6,968,397 | |||
Compass Group plc | 496,970 | 10,693,366 | |||
HSBC Holdings plc (Hong Kong) | 1,300,000 | 11,294,121 | |||
London Stock Exchange Group plc | 362,110 | 15,979,709 | |||
Reckitt Benckiser Group plc | 83,960 | 8,587,194 | |||
RELX plc | 583,680 | 12,506,472 | |||
Rio Tinto plc | 291,496 | 11,652,313 | |||
Royal Dutch Shell plc, A Shares | 354,602 | 9,619,958 | |||
Shire plc | 229,630 | 13,229,689 | |||
St James's Place plc | 669,750 | 10,122,284 | |||
Tullow Oil plc(1) | 2,781,403 | 6,551,004 | |||
Weir Group plc (The) | 487,910 | 11,416,246 | |||
Wolseley plc | 206,150 | 13,572,880 | |||
Worldpay Group plc | 3,314,327 | 13,263,696 | |||
206,451,070 | |||||
TOTAL COMMON STOCKS (Cost $812,255,072) | 1,018,840,292 | ||||
EXCHANGE-TRADED FUNDS — 1.2% | |||||
iShares MSCI EAFE ETF (Cost $10,870,119) | 186,680 | 12,332,081 | |||
TEMPORARY CASH INVESTMENTS — 1.0% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.875% - 2.125%, 9/30/17 - 2/15/26, valued at $6,180,131), in a joint trading account at 0.70%, dated 5/31/17, due 6/1/17 (Delivery value $6,059,124) | 6,059,006 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 1.00%, 2/15/46, valued at $5,156,952), at 0.22%, dated 5/31/17, due 6/1/17 (Delivery value $5,051,031) | 5,051,000 |
6
Shares | Value | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 3,120 | $ | 3,120 | ||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $11,113,126) | 11,113,126 | ||||
TOTAL INVESTMENT SECURITIES — 100.1% (Cost $834,238,317) | 1,042,285,499 | ||||
OTHER ASSETS AND LIABILITIES — (0.1)% | (1,490,760 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 1,040,794,739 |
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Consumer Discretionary | 20.6 | % |
Financials | 18.8 | % |
Information Technology | 14.9 | % |
Industrials | 13.2 | % |
Consumer Staples | 10.0 | % |
Health Care | 9.4 | % |
Materials | 6.8 | % |
Energy | 3.6 | % |
Real Estate | 0.6 | % |
Exchange-Traded Funds | 1.2 | % |
Cash and Equivalents* | 0.9 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
CVA | - | Certificaten Van Aandelen |
(1) | Non-income producing. |
See Notes to Financial Statements.
7
Statement of Assets and Liabilities |
MAY 31, 2017 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $834,238,317) | $ | 1,042,285,499 | |
Foreign currency holdings, at value (cost of $1,142,678) | 1,143,587 | ||
Receivable for investments sold | 7,038,941 | ||
Receivable for capital shares sold | 13,753 | ||
Dividends and interest receivable | 4,986,816 | ||
Other assets | 13,407 | ||
1,055,482,003 | |||
Liabilities | |||
Payable for investments purchased | 5,133,693 | ||
Payable for capital shares redeemed | 8,548,727 | ||
Accrued management fees | 835,696 | ||
Accrued foreign taxes | 169,148 | ||
14,687,264 | |||
Net Assets | $ | 1,040,794,739 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 862,466,610 | |
Undistributed net investment income | 3,761,043 | ||
Accumulated net realized loss | (33,319,838 | ) | |
Net unrealized appreciation | 207,886,924 | ||
$ | 1,040,794,739 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Institutional Class, $0.01 Par Value | $928,265,674 | 82,474,792 | $11.26 | |||
R6 Class, $0.01 Par Value | $112,529,065 | 9,997,965 | $11.26 |
See Notes to Financial Statements.
8
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $1,321,553) | $ | 13,000,350 | |
Interest | 12,305 | ||
13,012,655 | |||
Expenses: | |||
Management fees | 4,718,896 | ||
Directors' fees and expenses | 14,005 | ||
Other expenses | 2,755 | ||
4,735,656 | |||
Net investment income (loss) | 8,276,999 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 4,917,705 | ||
Foreign currency transactions | (226,793 | ) | |
4,690,912 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $(169,148)) | 155,075,946 | ||
Translation of assets and liabilities in foreign currencies | 171,290 | ||
155,247,236 | |||
Net realized and unrealized gain (loss) | 159,938,148 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 168,215,147 |
See Notes to Financial Statements.
9
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2016 | ||||||
Increase (Decrease) in Net Assets | May 31, 2017 | November 30, 2016 | ||||
Operations | ||||||
Net investment income (loss) | $ | 8,276,999 | $ | 8,749,888 | ||
Net realized gain (loss) | 4,690,912 | (34,751,807 | ) | |||
Change in net unrealized appreciation (depreciation) | 155,247,236 | (43,642,580 | ) | |||
Net increase (decrease) in net assets resulting from operations | 168,215,147 | (69,644,499 | ) | |||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Institutional Class | (7,905,118 | ) | (5,713,153 | ) | ||
R6 Class | (1,009,740 | ) | (434,699 | ) | ||
From net realized gains: | ||||||
Institutional Class | — | (23,995,241 | ) | |||
R6 Class | — | (1,521,449 | ) | |||
Decrease in net assets from distributions | (8,914,858 | ) | (31,664,542 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (47,877,154 | ) | 188,346,075 | |||
Net increase (decrease) in net assets | 111,423,135 | 87,037,034 | ||||
Net Assets | ||||||
Beginning of period | 929,371,604 | 842,334,570 | ||||
End of period | $ | 1,040,794,739 | $ | 929,371,604 | ||
Undistributed net investment income | $ | 3,761,043 | $ | 4,398,902 |
See Notes to Financial Statements.
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Notes to Financial Statements |
MAY 31, 2017 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. NT International Growth Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek capital growth. The fund is not permitted to invest in securities issued by companies assigned the Global Industry Classification Standard for the tobacco industry. The fund offers the Institutional Class and R6 Class.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. If significant fluctuations in foreign markets are identified, the fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
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Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
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3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc., and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 100% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for shareholder services, which may be provided indirectly through another American Century Investments mutual fund. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account the 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 use very similar investment teams and strategies (strategy assets). The strategy assets of the fund also include the assets of International Growth Fund, one fund in a series issued by the corporation.
The management fee schedule range and the effective annual management fee for the period ended May 31, 2017 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |
Institutional Class | 0.850% to 1.300% | 0.97% |
R6 Class | 0.700% to 1.150% | 0.82% |
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases were $291,292 and there were no interfund sales.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2017 were $315,238,426 and $350,249,996, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2017 | Year ended November 30, 2016 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Institutional Class/Shares Authorized | 690,000,000 | 560,000,000 | ||||||||
Sold | 3,971,441 | $ | 39,015,648 | 21,881,050 | $ | 212,057,635 | ||||
Issued in reinvestment of distributions | 826,031 | 7,905,118 | 2,887,113 | 29,708,394 | ||||||
Redeemed | (10,277,127 | ) | (106,869,480 | ) | (9,532,690 | ) | (97,969,015 | ) | ||
(5,479,655 | ) | (59,948,714 | ) | 15,235,473 | 143,797,014 | |||||
R6 Class/Shares Authorized | 80,000,000 | 40,000,000 | ||||||||
Sold | 2,373,211 | 23,613,065 | 5,047,460 | 50,034,983 | ||||||
Issued in reinvestment of distributions | 105,511 | 1,009,740 | 190,102 | 1,956,148 | ||||||
Redeemed | (1,207,423 | ) | (12,551,245 | ) | (742,018 | ) | (7,442,070 | ) | ||
1,271,299 | 12,071,560 | 4,495,544 | 44,549,061 | |||||||
Net increase (decrease) | (4,208,356 | ) | $ | (47,877,154 | ) | 19,731,017 | $ | 188,346,075 |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | $ | 50,316,410 | $ | 968,523,882 | — | |||
Exchange-Traded Funds | 12,332,081 | — | — | |||||
Temporary Cash Investments | 3,120 | 11,110,006 | — | |||||
$ | 62,651,611 | $ | 979,633,888 | — |
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.
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8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 837,968,451 | |
Gross tax appreciation of investments | $ | 206,420,557 | |
Gross tax depreciation of investments | (2,103,509 | ) | |
Net tax appreciation (depreciation) of investments | $ | 204,317,048 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2016, the fund had accumulated short-term capital losses of $(32,204,013), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
9. Recently Issued Accounting Guidance
In October 2016, the Securities and Exchange Commission adopted new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other provisions. Compliance with the amendments is effective on August 1, 2017. Management is currently evaluating the impact that adopting the amendments will have on the financial statement disclosures.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Institutional Class | |||||||||||||||
2017(3) | $9.61 | 0.08 | 1.66 | 1.74 | (0.09) | — | (0.09) | $11.26 | 18.16% | 0.97%(4) | 1.65%(4) | 32% | $928,266 | ||
2016 | $10.95 | 0.10 | (1.02) | (0.92) | (0.08) | (0.34) | (0.42) | $9.61 | (8.69)% | 0.98% | 0.98% | 69% | $845,423 | ||
2015 | $11.58 | 0.08 | (0.26) | (0.18) | (0.05) | (0.40) | (0.45) | $10.95 | (1.44)% | 0.97% | 0.69% | 83% | $795,985 | ||
2014 | $12.17 | 0.10 | 0.03 | 0.13 | (0.17) | (0.55) | (0.72) | $11.58 | 1.26% | 0.98% | 0.86% | 67% | $938,672 | ||
2013 | $9.94 | 0.11 | 2.27 | 2.38 | (0.15) | — | (0.15) | $12.17 | 24.27% | 1.02% | 1.01% | 89% | $771,045 | ||
2012 | $8.71 | 0.13 | 1.17 | 1.30 | (0.07) | — | (0.07) | $9.94 | 15.13% | 1.08% | 1.47% | 93% | $487,964 | ||
R6 Class | |||||||||||||||
2017(3) | $9.62 | 0.10 | 1.64 | 1.74 | (0.10) | — | (0.10) | $11.26 | 18.32% | 0.82%(4) | 1.80%(4) | 32% | $112,529 | ||
2016 | $10.95 | 0.11 | (1.00) | (0.89) | (0.10) | (0.34) | (0.44) | $9.62 | (8.46)% | 0.83% | 1.13% | 69% | $83,948 | ||
2015 | $11.59 | 0.10 | (0.27) | (0.17) | (0.07) | (0.40) | (0.47) | $10.95 | (1.37)% | 0.82% | 0.84% | 83% | $46,349 | ||
2014 | $12.18 | 0.11 | 0.04 | 0.15 | (0.19) | (0.55) | (0.74) | $11.59 | 1.43% | 0.83% | 1.01% | 67% | $28,220 | ||
2013(5) | $11.13 | (0.01) | 1.06 | 1.05 | — | — | — | $12.18 | 9.43% | 0.85%(4) | (0.34)%(4) | 89%(6) | $6,561 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2017 (unaudited). |
(4) | Annualized. |
(5) | July 26, 2013 (commencement of sale) through November 30, 2013. |
(6) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2013. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
Distributions you receive from 403(b), 457 and qualified plans are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on the "About Us" page of 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 fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s 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 fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
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Notes |
19
Notes |
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2017 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92627 1707 |
![acihorizblkb99.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/acihorizblkb99.jpg)
Semiannual Report | |
May 31, 2017 | |
NT International Small-Mid Cap Fund |
Table of Contents |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Fund Characteristics |
MAY 31, 2017 | |
Top Ten Holdings | % of net assets |
DSV A/S | 2.3% |
Treasury Wine Estates Ltd. | 2.2% |
Melrose Industries plc | 2.0% |
Challenger Ltd. | 1.9% |
Logitech International SA | 1.8% |
RPC Group plc | 1.7% |
Nokian Renkaat Oyj | 1.7% |
ASM Pacific Technology Ltd. | 1.7% |
Teleperformance | 1.6% |
Ashtead Group plc | 1.6% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 97.6% |
Temporary Cash Investments | 1.5% |
Other Assets and Liabilities | 0.9% |
Investments by Country | % of net assets |
Japan | 21.0% |
United Kingdom | 17.2% |
France | 9.6% |
Canada | 6.4% |
Germany | 5.0% |
Italy | 4.9% |
Australia | 4.6% |
Switzerland | 4.4% |
China | 4.1% |
Finland | 4.0% |
Denmark | 3.7% |
Sweden | 3.4% |
Hong Kong | 2.5% |
Other Countries | 6.8% |
Cash and Equivalents* | 2.4% |
*Includes temporary cash investments and other assets and liabilities. |
2
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2016 to May 31, 2017.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value 12/1/16 | Ending Account Value 5/31/17 | Expenses Paid During Period(1) 12/1/16 - 5/31/17 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,169.00 | $7.95 | 1.47% |
Institutional Class | $1,000 | $1,170.80 | $6.87 | 1.27% |
R6 Class | $1,000 | $1,171.20 | $6.06 | 1.12% |
Hypothetical | ||||
Investor Class | $1,000 | $1,017.60 | $7.39 | 1.47% |
Institutional Class | $1,000 | $1,018.60 | $6.39 | 1.27% |
R6 Class | $1,000 | $1,019.35 | $5.64 | 1.12% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. |
3
Schedule of Investments |
MAY 31, 2017 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 97.6% | |||||
Australia — 4.6% | |||||
Challenger Ltd. | 504,430 | $ | 4,793,907 | ||
Corporate Travel Management Ltd. | 78,750 | 1,289,090 | |||
Treasury Wine Estates Ltd. | 556,399 | 5,382,890 | |||
11,465,887 | |||||
Austria — 1.9% | |||||
Lenzing AG | 8,780 | 1,572,657 | |||
Wienerberger AG | 135,270 | 3,188,785 | |||
4,761,442 | |||||
Belgium — 1.5% | |||||
Galapagos NV(1) | 24,309 | 2,022,939 | |||
Ion Beam Applications | 29,229 | 1,773,385 | |||
3,796,324 | |||||
Canada — 6.4% | |||||
CCL Industries, Inc., Class B | 12,020 | 2,840,096 | |||
Lundin Mining Corp. | 282,790 | 1,557,506 | |||
Premium Brands Holdings Corp. | 32,710 | 2,235,714 | |||
Seven Generations Energy Ltd.(1) | 110,924 | 1,989,628 | |||
Shopify, Inc., Class A(1) | 7,130 | 654,962 | |||
Sleep Country Canada Holdings, Inc. | 100,010 | 2,887,360 | |||
Teck Resources Ltd. | 119,150 | 2,128,019 | |||
Trican Well Service Ltd.(1) | 561,830 | 1,667,793 | |||
15,961,078 | |||||
China — 4.1% | |||||
Beijing Enterprises Water Group Ltd. | 1,948,000 | 1,559,890 | |||
Brilliance China Automotive Holdings Ltd. | 1,926,000 | 3,593,694 | |||
Haier Electronics Group Co. Ltd. | 1,104,000 | 2,807,974 | |||
Tongda Group Holdings Ltd. | 7,780,000 | 2,216,425 | |||
10,177,983 | |||||
Denmark — 3.7% | |||||
Ambu A/S, B Shares | 14,370 | 963,577 | |||
DSV A/S | 92,774 | 5,647,887 | |||
Genmab A/S(1) | 12,322 | 2,629,482 | |||
9,240,946 | |||||
Finland — 4.0% | |||||
Cargotec Oyj | 60,628 | 3,609,641 | |||
Konecranes Oyj | 50,558 | 2,086,055 | |||
Nokian Renkaat Oyj | 102,373 | 4,183,723 | |||
9,879,419 | |||||
France — 9.6% | |||||
Arkema SA | 37,120 | 3,878,816 | |||
Aroundtown Property Holdings plc | 284,892 | 1,475,353 | |||
BioMerieux | 14,470 | 3,047,787 | |||
Elior Group | 17,540 | 496,924 | |||
Eurofins Scientific SE | 2,709 | 1,438,651 | |||
Maisons du Monde SA(1) | 87,656 | 3,309,520 |
4
Shares | Value | ||||
Nexans SA | 47,115 | $ | 2,576,732 | ||
SEB SA | 12,769 | 2,240,540 | |||
Teleperformance | 30,937 | 4,046,994 | |||
X-Fab Silicon Foundries SE(1) | 125,389 | 1,281,786 | |||
23,793,103 | |||||
Germany — 5.0% | |||||
AURELIUS Equity Opportunities SE & Co. KGaA | 44,090 | 2,568,547 | |||
CompuGroup Medical SE | 25,817 | 1,466,896 | |||
Dialog Semiconductor plc(1) | 34,980 | 1,669,831 | |||
Drillisch AG | 33,325 | 2,105,753 | |||
KION Group AG | 43,898 | 3,247,740 | |||
Salzgitter AG | 35,190 | 1,340,090 | |||
12,398,857 | |||||
Hong Kong — 2.5% | |||||
ASM Pacific Technology Ltd. | 291,200 | 4,177,857 | |||
Samsonite International SA | 490,200 | 1,978,401 | |||
6,156,258 | |||||
Ireland — 0.5% | |||||
Glanbia plc | 61,540 | 1,251,270 | |||
Italy — 4.9% | |||||
Buzzi Unicem SpA | 77,870 | 2,021,552 | |||
Davide Campari-Milano SpA | 73,290 | 512,506 | |||
Ferrari NV | 34,440 | 2,978,988 | |||
FinecoBank Banca Fineco SpA | 266,990 | 2,006,485 | |||
Industria Macchine Automatiche SpA | 14,980 | 1,338,649 | |||
Salvatore Ferragamo SpA | 87,409 | 2,440,043 | |||
Unione di Banche Italiane SpA | 255,520 | 965,023 | |||
12,263,246 | |||||
Japan — 21.0% | |||||
Ain Holdings, Inc. | 15,800 | 1,271,133 | |||
Alps Electric Co. Ltd. | 65,600 | 1,842,131 | |||
Anritsu Corp. | 165,000 | 1,427,269 | |||
Calbee, Inc. | 13,800 | 534,555 | |||
CyberAgent, Inc. | 66,100 | 2,387,359 | |||
Disco Corp. | 12,600 | 2,173,002 | |||
DMG Mori Co. Ltd. | 66,800 | 1,050,705 | |||
Don Quijote Holdings Co. Ltd. | 71,500 | 2,795,440 | |||
eRex Co. Ltd. | 99,800 | 944,383 | |||
GMO Payment Gateway, Inc. | 27,500 | 1,601,580 | |||
Ichikoh Industries Ltd. | 37,000 | 226,844 | |||
Kanto Denka Kogyo Co. Ltd. | 93,600 | 764,013 | |||
Kose Corp. | 13,600 | 1,467,449 | |||
LIXIL Group Corp. | 85,400 | 2,076,589 | |||
Mabuchi Motor Co. Ltd. | 42,200 | 2,377,679 | |||
NGK Spark Plug Co. Ltd. | 117,900 | 2,396,324 | |||
Nippon Shinyaku Co. Ltd. | 27,100 | 1,580,731 | |||
Nitori Holdings Co. Ltd. | 17,300 | 2,529,002 | |||
Omron Corp. | 32,800 | 1,371,233 | |||
Outsourcing, Inc. | 35,400 | 1,617,372 | |||
Sawai Pharmaceutical Co. Ltd. | 44,100 | 2,385,183 | |||
Seria Co. Ltd. | 58,600 | 2,836,081 |
5
Shares | Value | ||||
Sony Financial Holdings, Inc. | 75,900 | $ | 1,168,483 | ||
Start Today Co. Ltd. | 64,100 | 1,599,751 | |||
Sumco Corp. | 210,100 | 3,473,527 | |||
Taiyo Nippon Sanso Corp. | 184,600 | 1,873,503 | |||
Temp Holdings Co. Ltd. | 135,500 | 2,675,743 | |||
Tokyo Base Co. Ltd.(1) | 42,000 | 1,293,183 | |||
Topcon Corp. | 100,900 | 1,843,076 | |||
Vector, Inc. | 1,500 | 22,009 | |||
Yumeshin Holdings Co. Ltd. | 74,400 | 494,433 | |||
52,099,765 | |||||
New Zealand — 0.8% | |||||
a2 Milk Co. Ltd.(1) | 804,240 | 1,900,339 | |||
Norway — 1.1% | |||||
Asetek A/S | 85,440 | 1,117,385 | |||
Storebrand ASA | 228,930 | 1,494,264 | |||
2,611,649 | |||||
Spain — 1.0% | |||||
Bankia SA | 1,258,840 | 1,448,056 | |||
NH Hotel Group SA(1) | 176,850 | 1,035,041 | |||
2,483,097 | |||||
Sweden — 3.4% | |||||
Ambea AB(1) | 129,517 | 1,367,235 | |||
Intrum Justitia AB | 39,847 | 1,348,803 | |||
Loomis AB, B Shares | 39,200 | 1,477,092 | |||
Lundin Petroleum AB(1) | 72,184 | 1,401,922 | |||
RaySearch Laboratories AB(1) | 68,704 | 1,889,253 | |||
SSAB AB, A Shares(1) | 256,350 | 1,046,176 | |||
8,530,481 | |||||
Switzerland — 4.4% | |||||
Logitech International SA | 121,010 | 4,422,853 | |||
Lonza Group AG | 16,481 | 3,413,441 | |||
Partners Group Holding AG | 5,190 | 3,180,285 | |||
11,016,579 | |||||
United Kingdom — 17.2% | |||||
Ashtead Group plc | 194,140 | 3,917,189 | |||
ASOS plc(1) | 26,749 | 2,211,604 | |||
B&M European Value Retail SA | 412,860 | 1,937,893 | |||
BBA Aviation plc | 617,640 | 2,564,859 | |||
Cairn Homes plc(1) | 1,711,203 | 3,056,423 | |||
Cineworld Group plc | 282,490 | 2,613,336 | |||
CVS Group plc | 161,380 | 2,925,577 | |||
DCC plc | 37,092 | 3,524,602 | |||
easyJet plc | 136,400 | 2,485,030 | |||
Just Eat plc(1) | 234,930 | 2,032,602 | |||
Melrose Industries plc | 1,586,295 | 4,889,942 | |||
NEX Group plc | 242,370 | 2,012,656 | |||
Rentokil Initial plc | 760,870 | 2,603,792 | |||
RPC Group plc | 379,847 | 4,199,173 | |||
Segro plc | 188,210 | 1,219,771 |
6
Shares | Value | ||||
Tullow Oil plc(1) | 263,097 | $ | 619,669 | ||
42,814,118 | |||||
TOTAL COMMON STOCKS (Cost $196,626,787) | 242,601,841 | ||||
TEMPORARY CASH INVESTMENTS — 1.5% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.875% - 2.125%, 9/30/17 - 2/15/26, valued at $2,128,363), in a joint trading account at 0.70%, dated 5/31/17, due 6/1/17 (Delivery value $2,086,690) | 2,086,649 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 1.00%, 2/15/46, valued at $1,776,633), at 0.22%, dated 5/31/17, due 6/1/17 (Delivery value $1,739,011) | 1,739,000 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 1,579 | 1,579 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $3,827,228) | 3,827,228 | ||||
TOTAL INVESTMENT SECURITIES — 99.1% (Cost $200,454,015) | 246,429,069 | ||||
OTHER ASSETS AND LIABILITIES — 0.9% | 2,232,291 | ||||
TOTAL NET ASSETS — 100.0% | $ | 248,661,360 |
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Industrials | 22.4 | % |
Consumer Discretionary | 22.2 | % |
Information Technology | 12.7 | % |
Health Care | 10.7 | % |
Materials | 10.5 | % |
Financials | 7.9 | % |
Consumer Staples | 5.9 | % |
Energy | 2.3 | % |
Real Estate | 1.1 | % |
Utilities | 1.0 | % |
Telecommunication Services | 0.9 | % |
Cash and Equivalents* | 2.4 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS |
(1) | Non-income producing. |
See Notes to Financial Statements.
7
Statement of Assets and Liabilities |
MAY 31, 2017 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $200,454,015) | $ | 246,429,069 | |
Foreign currency holdings, at value (cost of $167,203) | 167,626 | ||
Receivable for investments sold | 3,150,127 | ||
Receivable for capital shares sold | 72 | ||
Dividends and interest receivable | 577,458 | ||
250,324,352 | |||
Liabilities | |||
Payable for investments purchased | 1,175,506 | ||
Payable for capital shares redeemed | 212,141 | ||
Accrued management fees | 275,345 | ||
1,662,992 | |||
Net Assets | $ | 248,661,360 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 213,310,862 | |
Undistributed net investment income | 461,555 | ||
Accumulated net realized loss | (11,088,044 | ) | |
Net unrealized appreciation | 45,976,987 | ||
$ | 248,661,360 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $74,649,463 | 6,464,947 | $11.55 | |||
Institutional Class, $0.01 Par Value | $154,908,575 | 13,400,652 | $11.56 | |||
R6 Class, $0.01 Par Value | $19,103,322 | 1,651,594 | $11.57 |
See Notes to Financial Statements.
8
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $230,914) | $ | 1,981,927 | |
Interest | 5,739 | ||
1,987,666 | |||
Expenses: | |||
Management fees | 1,511,970 | ||
Directors' fees and expenses | 3,220 | ||
Other expenses | 686 | ||
1,515,876 | |||
Net investment income (loss) | 471,790 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 5,555,945 | ||
Foreign currency transactions | (28,488 | ) | |
5,527,457 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | 30,536,388 | ||
Translation of assets and liabilities in foreign currencies | 26,139 | ||
30,562,527 | |||
Net realized and unrealized gain (loss) | 36,089,984 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 36,561,774 |
See Notes to Financial Statements.
9
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2016 | ||||||
Increase (Decrease) in Net Assets | May 31, 2017 | November 30, 2016 | ||||
Operations | ||||||
Net investment income (loss) | $ | 471,790 | $ | 143,007 | ||
Net realized gain (loss) | 5,527,457 | (7,312,939 | ) | |||
Change in net unrealized appreciation (depreciation) | 30,562,527 | 1,682,925 | ||||
Net increase (decrease) in net assets resulting from operations | 36,561,774 | (5,487,007 | ) | |||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | — | (438,707 | ) | |||
Institutional Class | (229,198 | ) | (1,087,818 | ) | ||
R6 Class | (48,848 | ) | (82,548 | ) | ||
Decrease in net assets from distributions | (278,046 | ) | (1,609,073 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 1,062,092 | 11,295,936 | ||||
Net increase (decrease) in net assets | 37,345,820 | 4,199,856 | ||||
Net Assets | ||||||
Beginning of period | 211,315,540 | 207,115,684 | ||||
End of period | $ | 248,661,360 | $ | 211,315,540 | ||
Undistributed net investment income | $ | 461,555 | $ | 267,811 |
See Notes to Financial Statements.
10
Notes to Financial Statements |
MAY 31, 2017 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. NT International Small-Mid Cap Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital growth. The fund is not permitted to invest in securities issued by companies assigned the Global Industry Classification Standard for the tobacco industry. The fund offers the Investor Class, Institutional Class and R6 Class.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. If significant fluctuations in foreign markets are identified, the fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
11
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
12
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc., and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. and American Century Strategic Asset Allocations, Inc. own, in aggregate, 100% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for shareholder services, which may be provided indirectly through another American Century Investments mutual fund. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class.
The annual management fee for each class is as follows:
Investor Class | Institutional Class | R6 Class |
1.47% | 1.27% | 1.12% |
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. There were no interfund transactions during the period.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2017 were $149,908,451 and $149,321,611, respectively.
13
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2017 | Year ended November 30, 2016 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 80,000,000 | 80,000,000 | ||||||||
Sold | 185,865 | $ | 1,926,572 | 251,243 | $ | 2,516,289 | ||||
Issued in reinvestment of distributions | — | — | 43,010 | 438,707 | ||||||
Redeemed | (15,312 | ) | (165,777 | ) | (360,077 | ) | (3,719,805 | ) | ||
170,553 | 1,760,795 | (65,824 | ) | (764,809 | ) | |||||
Institutional Class/Shares Authorized | 120,000,000 | 130,000,000 | ||||||||
Sold | 468,660 | 4,775,200 | 2,158,137 | 21,060,150 | ||||||
Issued in reinvestment of distributions | 23,435 | 229,198 | 106,649 | 1,087,818 | ||||||
Redeemed | (774,515 | ) | (8,345,344 | ) | (1,517,409 | ) | (15,850,337 | ) | ||
(282,420 | ) | (3,340,946 | ) | 747,377 | 6,297,631 | |||||
R6 Class/Shares Authorized | 50,000,000 | 40,000,000 | ||||||||
Sold | 363,904 | 3,730,484 | 646,960 | 6,528,039 | ||||||
Issued in reinvestment of distributions | 4,995 | 48,848 | 8,093 | 82,548 | ||||||
Redeemed | (107,925 | ) | (1,137,089 | ) | (82,231 | ) | (847,473 | ) | ||
260,974 | 2,642,243 | 572,822 | 5,763,114 | |||||||
Net increase (decrease) | 149,107 | $ | 1,062,092 | 1,254,375 | $ | 11,295,936 |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | $ | 2,782,981 | $ | 239,818,860 | — | |||
Temporary Cash Investments | 1,579 | 3,825,649 | — | |||||
$ | 2,784,560 | $ | 243,644,509 | — |
14
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.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
The fund’s investment process may result in high portfolio turnover, which could mean high transaction costs, affecting both performance and capital gains tax liabilities to investors.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 200,613,516 | |
Gross tax appreciation of investments | $ | 47,713,449 | |
Gross tax depreciation of investments | (1,897,896 | ) | |
Net tax appreciation (depreciation) of investments | $ | 45,815,553 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2016, the fund had accumulated short-term capital losses of $(16,373,609), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
9. Recently Issued Accounting Guidance
In October 2016, the Securities and Exchange Commission adopted new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other provisions. Compliance with the amendments is effective on August 1, 2017. Management is currently evaluating the impact that adopting the amendments will have on the financial statement disclosures.
15
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2017(3) | $9.88 | 0.01 | 1.66 | 1.67 | — | $11.55 | 16.90% | 1.47%(4) | 0.26%(4) | 66% | $74,649 | ||
2016 | $10.29 | (0.01) | (0.33) | (0.34) | (0.07) | $9.88 | (3.12)% | 1.47% | (0.07)% | 138% | $62,162 | ||
2015(5) | $10.00 | 0.02 | 0.27 | 0.29 | — | $10.29 | 2.70% | 1.47%(4) | 0.32%(4) | 118% | $65,428 | ||
Institutional Class | |||||||||||||
2017(3) | $9.89 | 0.02 | 1.67 | 1.69 | (0.02) | $11.56 | 17.08% | 1.27%(4) | 0.46%(4) | 66% | $154,909 | ||
2016 | $10.30 | 0.01 | (0.33) | (0.32) | (0.09) | $9.89 | (2.97)% | 1.27% | 0.13% | 138% | $135,377 | ||
2015(5) | $10.00 | 0.04 | 0.26 | 0.30 | — | $10.30 | 2.80% | 1.27%(4) | 0.52%(4) | 118% | $133,255 | ||
R6 Class | |||||||||||||
2017(3) | $9.91 | 0.03 | 1.66 | 1.69 | (0.03) | $11.57 | 17.12% | 1.12%(4) | 0.61%(4) | 66% | $19,103 | ||
2016 | $10.31 | 0.02 | (0.32) | (0.30) | (0.10) | $9.91 | (2.75)% | 1.12% | 0.28% | 138% | $13,777 | ||
2015(5) | $10.00 | 0.05 | 0.26 | 0.31 | — | $10.31 | 2.90% | 1.12%(4) | 0.67%(4) | 118% | $8,433 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2017 (unaudited). |
(4) | Annualized. |
(5) | March 19, 2015 (fund inception) through November 30, 2015. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
Distributions you receive from 403(b), 457 and qualified plans are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on the "About Us" page of 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 fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s 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 fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
18
Notes |
19
Notes |
20
![]() | ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2017 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92628 1707 |
![acihorizblkb99.jpg](https://capedge.com/proxy/N-CSRS/0000872825-17-000112/acihorizblkb99.jpg)
Semiannual Report | |
May 31, 2017 | |
NT International Value Fund |
Table of Contents |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Fund Characteristics |
MAY 31, 2017 | |
Top Ten Holdings | % of net assets |
HSBC Holdings plc | 3.5% |
Royal Dutch Shell plc, B Shares | 2.5% |
Allianz SE | 2.1% |
BNP Paribas SA | 2.0% |
ING Groep NV | 2.0% |
Toyota Motor Corp. | 1.7% |
Australia & New Zealand Banking Group Ltd. | 1.7% |
Zurich Insurance Group AG | 1.6% |
Banco Santander SA | 1.6% |
Siemens AG | 1.5% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 97.4% |
Exchange-Traded Funds | 0.5% |
Total Equity Exposure | 97.9% |
Temporary Cash Investments | 1.5% |
Other Assets and Liabilities | 0.6% |
Investments by Country | % of net assets |
Japan | 20.2% |
United Kingdom | 15.8% |
Germany | 10.7% |
France | 10.5% |
Australia | 6.8% |
Switzerland | 6.7% |
Sweden | 5.1% |
Spain | 5.1% |
Netherlands | 2.4% |
Other Countries | 14.1% |
Exchange-Traded Funds* | 0.5% |
Cash and Equivalents** | 2.1% |
*Category may increase exposure to the countries indicated. The Schedule of Investments provides | |
additional information on the fund's portfolio holdings. | |
**Includes temporary cash investments and other assets and liabilities. |
2
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2016 to May 31, 2017.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value 12/1/16 | Ending Account Value 5/31/17 | Expenses Paid During Period(1) 12/1/16 - 5/31/17 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,155.80 | $6.93 | 1.29% |
Institutional Class | $1,000 | $1,156.70 | $5.86 | 1.09% |
R6 Class | $1,000 | $1,157.10 | $5.06 | 0.94% |
Hypothetical | ||||
Investor Class | $1,000 | $1,018.50 | $6.49 | 1.29% |
Institutional Class | $1,000 | $1,019.50 | $5.49 | 1.09% |
R6 Class | $1,000 | $1,020.24 | $4.73 | 0.94% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. |
3
Schedule of Investments |
MAY 31, 2017 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 97.4% | |||||
Australia — 6.8% | |||||
Australia & New Zealand Banking Group Ltd. | 765,373 | $ | 15,929,584 | ||
BWP Trust | 268,275 | 605,999 | |||
CIMIC Group Ltd. | 31,655 | 952,611 | |||
Commonwealth Bank of Australia | 108,020 | 6,393,050 | |||
Dexus | 228,581 | 1,764,712 | |||
Downer EDI Ltd. | 1,081,851 | 5,144,766 | |||
Fortescue Metals Group Ltd. | 1,254,075 | 4,519,428 | |||
Mirvac Group | 271,213 | 459,477 | |||
National Australia Bank Ltd. | 242,974 | 5,437,922 | |||
Qantas Airways Ltd. | 2,221,768 | 8,270,935 | |||
Regis Resources Ltd. | 464,360 | 1,128,290 | |||
Scentre Group | 755,111 | 2,390,224 | |||
Telstra Corp. Ltd. | 1,004,819 | 3,285,176 | |||
Westpac Banking Corp. | 407,011 | 9,224,103 | |||
65,506,277 | |||||
Austria — 0.7% | |||||
OMV AG | 137,973 | 7,192,398 | |||
Belgium — 1.3% | |||||
KBC Group NV | 161,399 | 12,143,974 | |||
China — 1.6% | |||||
China CITIC Bank Corp. Ltd., H Shares | 3,455,000 | 2,132,620 | |||
China Construction Bank Corp., H Shares | 5,727,000 | 4,732,967 | |||
Country Garden Holdings Co. Ltd. | 5,914,000 | 6,989,745 | |||
Industrial & Commercial Bank of China Ltd., H Shares | 2,704,000 | 1,807,860 | |||
15,663,192 | |||||
Denmark — 1.6% | |||||
H Lundbeck A/S | 36,282 | 1,935,895 | |||
TDC A/S | 488,956 | 2,919,063 | |||
Vestas Wind Systems A/S | 113,832 | 10,117,139 | |||
14,972,097 | |||||
Finland — 0.6% | |||||
UPM-Kymmene Oyj | 212,592 | 5,994,259 | |||
France — 10.5% | |||||
AXA SA | 319,066 | 8,508,952 | |||
BNP Paribas SA | 272,337 | 19,218,497 | |||
Cie Generale des Etablissements Michelin, Class B | 8,966 | 1,128,059 | |||
CNP Assurances | 452,941 | 9,962,519 | |||
Engie SA | 313,660 | 4,786,672 | |||
Faurecia | 119,457 | 6,270,790 | |||
Metropole Television SA | 58,022 | 1,381,794 | |||
Orange SA | 325,286 | 5,715,010 | |||
Peugeot SA | 465,360 | 9,174,471 | |||
Sanofi | 60,425 | 5,984,837 | |||
Schneider Electric SE | 24,049 | 1,852,178 | |||
SCOR SE | 36,591 | 1,440,506 |
4
Shares | Value | ||||
Societe Generale SA | 275,784 | $ | 14,458,449 | ||
TOTAL SA | 144,012 | 7,647,142 | |||
Valeo SA | 50,116 | 3,488,773 | |||
101,018,649 | |||||
Germany — 10.7% | |||||
Allianz SE | 107,606 | 20,658,244 | |||
BASF SE | 37,147 | 3,498,564 | |||
Covestro AG | 31,311 | 2,341,831 | |||
Daimler AG | 8,439 | 612,499 | |||
Deutsche Lufthansa AG | 507,720 | 9,864,151 | |||
Deutsche Telekom AG | 176,788 | 3,520,091 | |||
Deutsche Wohnen AG | 148,644 | 5,830,077 | |||
E.ON SE | 864,441 | 7,562,687 | |||
Grand City Properties SA | 31,310 | 648,749 | |||
Hannover Rueck SE | 70,241 | 8,363,950 | |||
METRO AG | 59,392 | 1,988,195 | |||
Muenchener Rueckversicherungs-Gesellschaft AG | 15,729 | 3,105,355 | |||
ProSiebenSat.1 Media SE | 204,973 | 8,702,537 | |||
RTL Group SA | 41,078 | 3,196,922 | |||
Schaeffler AG Preference Shares | 229,994 | 3,799,237 | |||
Siemens AG | 103,465 | 14,766,684 | |||
Uniper SE(1) | 245,082 | 4,778,052 | |||
103,237,825 | |||||
Hong Kong — 1.9% | |||||
BOC Hong Kong Holdings Ltd. | 1,986,000 | 8,958,287 | |||
Kerry Properties Ltd. | 261,000 | 922,747 | |||
New World Development Co. Ltd. | 1,008,000 | 1,254,737 | |||
PCCW Ltd. | 5,916,000 | 3,446,707 | |||
Wharf Holdings Ltd. (The) | 89,000 | 757,223 | |||
Wheelock & Co. Ltd. | 443,000 | 3,314,307 | |||
18,654,008 | |||||
India — 0.3% | |||||
Tata Power Co. Ltd. (The) | 1,636,147 | 2,054,059 | |||
Yes Bank Ltd. | 34,013 | 754,565 | |||
2,808,624 | |||||
Ireland — 0.5% | |||||
CRH plc | 29,811 | 1,073,463 | |||
Smurfit Kappa Group plc | 140,749 | 3,961,454 | |||
5,034,917 | |||||
Israel — 0.1% | |||||
Tower Semiconductor Ltd.(1) | 33,402 | 864,716 | |||
Italy — 0.9% | |||||
Enel SpA | 730,198 | 3,902,833 | |||
Fiat Chrysler Automobiles NV(1) | 242,269 | 2,543,267 | |||
UnipolSai Assicurazioni SpA | 939,090 | 2,126,731 | |||
8,572,831 | |||||
Japan — 20.2% | |||||
Bridgestone Corp. | 239,500 | 10,060,081 | |||
Brother Industries Ltd. | 143,600 | 3,187,077 | |||
Canon, Inc. | 127,200 | 4,341,454 | |||
Dai-ichi Life Holdings, Inc. | 84,000 | 1,398,989 |
5
Shares | Value | ||||
Daiwa House Industry Co. Ltd. | 68,000 | $ | 2,222,050 | ||
Daiwa Securities Group, Inc. | 679,000 | 4,129,178 | |||
Furukawa Electric Co. Ltd. | 40,900 | 1,829,883 | |||
Hitachi Chemical Co. Ltd. | 154,800 | 4,270,104 | |||
Hitachi Construction Machinery Co. Ltd. | 91,000 | 2,110,871 | |||
Honda Motor Co. Ltd. | 145,300 | 4,089,391 | |||
Japan Airlines Co. Ltd. | 96,000 | 2,812,822 | |||
JXTG Holdings, Inc. | 2,486,200 | 10,829,281 | |||
KDDI Corp. | 133,300 | 3,690,274 | |||
Leopalace21 Corp. | 637,900 | 3,755,402 | |||
Maeda Corp. | 84,000 | 907,883 | |||
Miraca Holdings, Inc. | 132,200 | 5,556,578 | |||
Mitsubishi Chemical Holdings Corp. | 887,100 | 6,716,328 | |||
Mitsubishi UFJ Financial Group, Inc. | 1,945,900 | 12,139,253 | |||
Mitsui Chemicals, Inc. | 472,000 | 2,344,018 | |||
Mixi, Inc. | 7,700 | 483,205 | |||
Mizuho Financial Group, Inc. | 4,775,500 | 8,313,466 | |||
Nichias Corp. | 119,000 | 1,414,032 | |||
Nippon Telegraph & Telephone Corp. | 179,500 | 8,603,034 | |||
NSK Ltd. | 284,700 | 3,393,264 | |||
NTT DOCOMO, Inc. | 359,800 | 8,826,877 | |||
Oracle Corp. Japan(1) | 22,300 | 1,312,831 | |||
ORIX Corp. | 328,500 | 5,184,813 | |||
SBI Holdings, Inc. | 289,900 | 3,753,649 | |||
Sega Sammy Holdings, Inc. | 279,300 | 3,543,264 | |||
Sompo Holdings, Inc. | 34,600 | 1,335,263 | |||
Subaru Corp. | 297,300 | 10,053,169 | |||
Sumitomo Corp. | 110,000 | 1,402,935 | |||
Sumitomo Mitsui Financial Group, Inc. | 187,300 | 6,720,814 | |||
Suzuki Motor Corp. | 141,300 | 6,653,539 | |||
Toshiba Plant Systems & Services Corp. | 109,400 | 1,627,912 | |||
Tosoh Corp. | 815,000 | 6,924,740 | |||
Toyota Boshoku Corp. | 189,600 | 3,658,467 | |||
Toyota Motor Corp. | 307,600 | 16,475,695 | |||
Toyota Tsusho Corp. | 141,300 | 4,331,499 | |||
TS Tech Co. Ltd. | 125,600 | 3,532,677 | |||
193,936,062 | |||||
Netherlands — 2.4% | |||||
ING Groep NV | 1,131,961 | 18,933,941 | |||
NN Group NV | 114,365 | 4,111,099 | |||
23,045,040 | |||||
Norway — 0.8% | |||||
Subsea 7 SA | 527,587 | 7,586,643 | |||
Portugal — 0.9% | |||||
EDP - Energias de Portugal SA | 2,065,874 | 7,597,966 | |||
Galp Energia SGPS SA | 51,139 | 788,747 | |||
8,386,713 | |||||
Singapore — 0.4% | |||||
Oversea-Chinese Banking Corp. Ltd. | 140,600 | 1,065,944 |
6
Shares | Value | ||||
United Overseas Bank Ltd. | 158,100 | $ | 2,625,764 | ||
3,691,708 | |||||
South Korea — 1.6% | |||||
Hyundai Development Co-Engineering & Construction | 72,403 | 3,323,968 | |||
LG Uplus Corp. | 209,970 | 3,038,151 | |||
Lotte Chemical Corp. | 4,789 | 1,542,010 | |||
Samsung Electronics Co. Ltd. | 1,356 | 2,706,913 | |||
SK Innovation Co. Ltd. | 33,820 | 5,105,020 | |||
15,716,062 | |||||
Spain — 5.1% | |||||
Banco Santander SA | 2,310,591 | 15,005,169 | |||
Endesa SA | 426,440 | 10,641,898 | |||
Mapfre SA | 1,798,915 | 6,397,885 | |||
Repsol SA | 432,672 | 7,249,314 | |||
Telefonica SA | 873,589 | 9,729,061 | |||
49,023,327 | |||||
Sweden — 5.1% | |||||
Axfood AB | 41,036 | 686,499 | |||
Boliden AB | 112,530 | 3,080,158 | |||
Electrolux AB | 361,851 | 11,619,833 | |||
Fabege AB | 221,471 | 4,161,149 | |||
Industrivarden AB, C Shares | 119,871 | 2,832,858 | |||
Intrum Justitia AB | 40,773 | 1,380,148 | |||
Investor AB, B Shares | 28,206 | 1,303,952 | |||
Kinnevik AB | 121,506 | 3,489,415 | |||
L E Lundbergforetagen AB, B Shares | 14,485 | 1,137,448 | |||
NCC AB, B Shares | 108,239 | 3,026,219 | |||
Peab AB | 218,931 | 2,597,025 | |||
Sandvik AB | 649,235 | 10,173,943 | |||
SKF AB, B Shares | 187,586 | 3,837,447 | |||
49,326,094 | |||||
Switzerland — 6.7% | |||||
ABB Ltd. | 148,776 | 3,737,257 | |||
dormakaba Holding AG(1) | 1,263 | 1,140,358 | |||
Julius Baer Group Ltd.(1) | 96,065 | 4,974,095 | |||
Logitech International SA | 46,211 | 1,688,988 | |||
Nestle SA | 37,115 | 3,167,162 | |||
Pargesa Holding SA | 6,410 | 498,346 | |||
Roche Holding AG | 35,544 | 9,754,370 | |||
Swiss Re AG | 139,330 | 12,702,327 | |||
Swisscom AG | 12,863 | 6,167,546 | |||
UBS Group AG(1) | 336,835 | 5,355,696 | |||
Zurich Insurance Group AG | 52,914 | 15,553,782 | |||
64,739,927 | |||||
Taiwan — 0.9% | |||||
Lite-On Technology Corp. | 728,000 | 1,222,248 | |||
Quanta Computer, Inc. | 2,102,000 | 4,807,926 | |||
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 65,680 | 2,322,445 | |||
8,352,619 | |||||
United Kingdom — 15.8% | |||||
3i Group plc | 955,425 | 11,017,610 |
7
Shares | Value | ||||
AA plc | 339,853 | $ | 1,022,459 | ||
Anglo American plc(1) | 201,938 | 2,683,830 | |||
AstraZeneca plc | 38,265 | 2,580,496 | |||
Barclays plc | 1,485,292 | 4,018,823 | |||
BHP Billiton plc | 75,520 | 1,141,373 | |||
BP plc | 1,317,648 | 7,923,280 | |||
Centamin plc | 499,723 | 1,072,041 | |||
Centrica plc | 3,073,818 | 8,051,620 | |||
Evraz plc(1) | 859,164 | 2,103,282 | |||
Firstgroup plc(1) | 590,701 | 1,140,111 | |||
G4S plc | 1,392,762 | 5,832,141 | |||
GlaxoSmithKline plc | 468,625 | 10,285,736 | |||
Glencore plc(1) | 257,024 | 944,145 | |||
HSBC Holdings plc | 3,813,201 | 33,193,046 | |||
Indivior plc | 401,227 | 1,683,743 | |||
Investec plc | 390,642 | 3,060,203 | |||
Kier Group plc | 24,855 | 402,227 | |||
Legal & General Group plc | 595,094 | 1,930,675 | |||
Lloyds Banking Group plc | 3,423,488 | 3,113,721 | |||
Marks & Spencer Group plc | 622,433 | 3,067,551 | |||
Petrofac Ltd. | 239,279 | 1,171,537 | |||
Rio Tinto plc | 316,539 | 12,653,387 | |||
Royal Dutch Shell plc, B Shares | 887,896 | 24,521,857 | |||
Royal Mail plc | 791,653 | 4,502,305 | |||
Vedanta Resources plc | 316,790 | 2,495,949 | |||
151,613,148 | |||||
TOTAL COMMON STOCKS (Cost $829,938,108) | 937,081,110 | ||||
EXCHANGE-TRADED FUNDS — 0.5% | |||||
iShares MSCI Japan ETF | 48,000 | 2,557,920 | |||
iShares MSCI EAFE Value ETF | 38,000 | 1,994,620 | |||
TOTAL EXCHANGE-TRADED FUNDS (Cost $4,259,325) | 4,552,540 | ||||
TEMPORARY CASH INVESTMENTS — 1.5% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.875% - 2.125%, 9/30/17 - 2/15/26, valued at $7,969,333), in a joint trading account at 0.70%, dated 5/31/17, due 6/1/17 (Delivery value $7,813,294) | 7,813,142 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 1.00%, 2/15/46, valued at $6,645,341), at 0.22%, dated 5/31/17, due 6/1/17 (Delivery value $6,514,040) | 6,514,000 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 3,234 | 3,234 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $14,330,376) | 14,330,376 | ||||
TOTAL INVESTMENT SECURITIES — 99.4% (Cost $848,527,809) | 955,964,026 | ||||
OTHER ASSETS AND LIABILITIES — 0.6% | 6,164,110 | ||||
TOTAL NET ASSETS — 100.0% | $ | 962,128,136 |
8
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Financials | 36.5 | % |
Consumer Discretionary | 11.9 | % |
Industrials | 11.8 | % |
Energy | 8.2 | % |
Materials | 7.2 | % |
Telecommunication Services | 6.1 | % |
Utilities | 5.1 | % |
Health Care | 4.0 | % |
Real Estate | 3.5 | % |
Information Technology | 2.5 | % |
Consumer Staples | 0.6 | % |
Exchange-Traded Funds | 0.5 | % |
Cash and Equivalents* | 2.1 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
(1) | Non-income producing. |
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2017 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $848,527,809) | $ | 955,964,026 | |
Foreign currency holdings, at value (cost of $387,036) | 392,983 | ||
Receivable for investments sold | 1,037,615 | ||
Receivable for capital shares sold | 22,759 | ||
Dividends and interest receivable | 8,618,620 | ||
966,036,003 | |||
Liabilities | |||
Payable for investments purchased | 3,371 | ||
Payable for capital shares redeemed | 2,951,695 | ||
Accrued management fees | 916,854 | ||
Accrued foreign taxes | 35,947 | ||
3,907,867 | |||
Net Assets | $ | 962,128,136 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 949,051,611 | |
Undistributed net investment income | 13,079,761 | ||
Accumulated net realized loss | (107,456,275 | ) | |
Net unrealized appreciation | 107,453,039 | ||
$ | 962,128,136 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $245,868,076 | 25,122,943 | $9.79 | |||
Institutional Class, $0.01 Par Value | $637,761,476 | 65,109,752 | $9.80 | |||
R6 Class, $0.01 Par Value | $78,498,584 | 8,008,529 | $9.80 |
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $2,127,331) | $ | 20,578,766 | |
Interest | 11,314 | ||
20,590,080 | |||
Expenses: | |||
Management fees | 5,103,489 | ||
Directors' fees and expenses | 12,713 | ||
Other expenses | 8,120 | ||
5,124,322 | |||
Net investment income (loss) | 15,465,758 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions (net of foreign tax expenses paid (refunded) of $4,327) | 11,284,126 | ||
Foreign currency transactions | (58,151 | ) | |
11,225,975 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $(35,947)) | 104,473,443 | ||
Translation of assets and liabilities in foreign currencies | 279,629 | ||
104,753,072 | |||
Net realized and unrealized gain (loss) | 115,979,047 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 131,444,805 |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2017 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2016 | ||||||
Increase (Decrease) in Net Assets | May 31, 2017 | November 30, 2016 | ||||
Operations | ||||||
Net investment income (loss) | $ | 15,465,758 | $ | 24,206,386 | ||
Net realized gain (loss) | 11,225,975 | (83,971,587 | ) | |||
Change in net unrealized appreciation (depreciation) | 104,753,072 | 45,218,406 | ||||
Net increase (decrease) in net assets resulting from operations | 131,444,805 | (14,546,795 | ) | |||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (6,184,068 | ) | (3,816,917 | ) | ||
Institutional Class | (18,723,887 | ) | (12,359,341 | ) | ||
R6 Class | (2,164,034 | ) | (859,181 | ) | ||
Decrease in net assets from distributions | (27,071,989 | ) | (17,035,439 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 11,586,183 | 105,894,458 | ||||
Net increase (decrease) in net assets | 115,958,999 | 74,312,224 | ||||
Net Assets | ||||||
Beginning of period | 846,169,137 | 771,856,913 | ||||
End of period | $ | 962,128,136 | $ | 846,169,137 | ||
Undistributed net investment income | $ | 13,079,761 | $ | 24,685,992 |
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2017 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. NT International Value Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek long-term capital growth. The fund is not permitted to invest in securities issued by companies assigned the Global Industry Classification Standard for the tobacco industry. The fund offers the Investor Class, the Institutional Class and the R6 Class.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. If significant fluctuations in foreign markets are identified, the fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
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Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The
14
maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc., and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. and American Century Strategic Asset Allocations, Inc. own, in aggregate, 100% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for shareholder services, which may be provided indirectly through another American Century Investments mutual fund. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account the 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 use very similar investment teams and strategies (strategy assets). The strategy assets of the fund also include the assets of International Value Fund, one fund in a series issued by the corporation.
The management fee schedule range and the effective annual management fee for each class for the period ended May 31, 2017 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |
Investor Class | 1.100% to 1.300% | 1.29% |
Institutional Class | 0.900% to 1.100% | 1.09% |
R6 Class | 0.750% to 0.950% | 0.94% |
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund sales were $3,465 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $642 in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2017 were $388,336,806 and $393,361,041, respectively.
15
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2017 | Year ended November 30, 2016 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 250,000,000 | 200,000,000 | ||||||||
Sold | 1,864,032 | $ | 17,116,324 | 3,132,613 | $ | 26,218,987 | ||||
Issued in reinvestment of distributions | 706,751 | 6,184,068 | 434,234 | 3,816,917 | ||||||
Redeemed | (488,330 | ) | (4,686,996 | ) | (1,552,422 | ) | (14,447,913 | ) | ||
2,082,453 | 18,613,396 | 2,014,425 | 15,587,991 | |||||||
Institutional Class/Shares Authorized | 570,000,000 | 450,000,000 | ||||||||
Sold | 2,164,767 | 19,754,946 | 15,155,157 | 124,940,633 | ||||||
Issued in reinvestment of distributions | 2,139,873 | 18,723,887 | 1,406,068 | 12,359,341 | ||||||
Redeemed | (6,215,169 | ) | (57,086,022 | ) | (8,401,524 | ) | (73,318,382 | ) | ||
(1,910,529 | ) | (18,607,189 | ) | 8,159,701 | 63,981,592 | |||||
R6 Class/Shares Authorized | 80,000,000 | 40,000,000 | ||||||||
Sold | 1,704,272 | 15,545,370 | 3,801,362 | 32,137,412 | ||||||
Issued in reinvestment of distributions | 247,318 | 2,164,034 | 97,746 | 859,181 | ||||||
Redeemed | (662,951 | ) | (6,129,428 | ) | (776,551 | ) | (6,671,718 | ) | ||
1,288,639 | 11,579,976 | 3,122,557 | 26,324,875 | |||||||
Net increase (decrease) | 1,460,563 | $ | 11,586,183 | 13,296,683 | $ | 105,894,458 |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | $ | 2,322,445 | $ | 934,758,665 | — | |||
Exchange-Traded Funds | 4,552,540 | — | — | |||||
Temporary Cash Investments | 3,234 | 14,327,142 | — | |||||
$ | 6,878,219 | $ | 949,085,807 | — |
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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.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 855,384,560 | |
Gross tax appreciation of investments | $ | 113,072,017 | |
Gross tax depreciation of investments | (12,492,551 | ) | |
Net tax appreciation (depreciation) of investments | $ | 100,579,466 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2016, the fund had accumulated short-term capital losses of $(75,398,882) and accumulated long-term capital losses of $(37,819,957), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
9. Recently Issued Accounting Guidance
In October 2016, the Securities and Exchange Commission adopted new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other provisions. Compliance with the amendments is effective on August 1, 2017. Management is currently evaluating the impact that adopting the amendments will have on the financial statement disclosures.
17
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2017(3) | $8.73 | 0.15 | 1.18 | 1.33 | (0.27) | $9.79 | 15.58% | 1.29%(4) | 3.25%(4) | 44% | $245,868 | ||
2016 | $9.24 | 0.25 | (0.56) | (0.31) | (0.20) | $8.73 | (3.42)% | 1.30% | 2.88% | 81% | $201,138 | ||
2015(5) | $10.00 | 0.20 | (0.96) | (0.76) | — | $9.24 | (7.60)% | 1.30%(4) | 2.95%(4) | 55% | $194,181 | ||
Institutional Class | |||||||||||||
2017(3) | $8.75 | 0.16 | 1.18 | 1.34 | (0.29) | $9.80 | 15.67% | 1.09%(4) | 3.45%(4) | 44% | $637,761 | ||
2016 | $9.25 | 0.26 | (0.55) | (0.29) | (0.21) | $8.75 | (3.16)% | 1.10% | 3.08% | 81% | $586,173 | ||
2015(5) | $10.00 | 0.21 | (0.96) | (0.75) | — | $9.25 | (7.50)% | 1.10%(4) | 3.15%(4) | 55% | $544,369 | ||
R6 Class | |||||||||||||
2017(3) | $8.76 | 0.17 | 1.17 | 1.34 | (0.30) | $9.80 | 15.71% | 0.94%(4) | 3.60%(4) | 44% | $78,499 | ||
2016 | $9.26 | 0.27 | (0.55) | (0.28) | (0.22) | $8.76 | (3.04)% | 0.95% | 3.23% | 81% | $58,858 | ||
2015(5) | $10.00 | 0.22 | (0.96) | (0.74) | — | $9.26 | (7.40)% | 0.95%(4) | 3.30%(4) | 55% | $33,307 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2017 (unaudited). |
(4) | Annualized. |
(5) | March 19, 2015 (fund inception) through November 30, 2015. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
Distributions you receive from 403(b), 457 and qualified plans are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on the "About Us" page of 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 fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s 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 fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
19
Notes |
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2017 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92629 1707 |
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 26, 2017 |
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 26, 2017 |
By: | /s/ C. Jean Wade | ||
Name: C. Jean Wade | |||
Title: Vice President, Treasurer, and | |||
Chief Financial Officer | |||
(principal financial officer) | |||
Date: | July 26, 2017 |