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: | 05-31-2018 |
ITEM 1. REPORTS TO STOCKHOLDERS.
![acihorizblkd26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/acihorizblkd26.jpg)
Semiannual Report | |
May 31, 2018 | |
Emerging Markets Fund | |
Investor Class (TWMIX) | |
I Class (AMKIX) | |
Y Class (AEYMX) | |
A Class (AEMMX) | |
C Class (ACECX) | |
R Class (AEMRX) | |
R5 Class (AEGMX) | |
R6 Class (AEDMX) |
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/0000872825-18-000059/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the six months ended May 31, 2018. 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.
Volatility’s Rise Restrains Returns
Global stocks continued to rally early in the reporting period, bolstered by improving growth trends throughout the world, positive corporate earnings results, generally muted inflation, and still-low interest rates. For example, U.S. stocks were notably strong, with the S&P 500 Index gaining nearly 8% for the two months ended January 31, 2018. Outside the U.S., returns were similarly robust, as central bank accommodations enhanced the positive economic and earnings backdrop.
Sentiment changed swiftly and sharply in early February. U.S. stocks plunged after the U.S. Department of Labor announced wages grew at their fastest year-over-year pace in nine years. This news, coupled with other positive economic data and rising inflation expectations, pushed interest rates higher and triggered fears that the Federal Reserve (the Fed) would ramp up its rate-hike campaign. In addition, the U.S. announced a series of tariffs that sparked fears of a global trade war. However, by the end of the reporting period, U.S. market volatility subsided somewhat. U.S. economic and inflation data and the Fed’s rate-hike strategy were generally aligned with investor expectations, while trade concerns eased. But outside the U.S., stocks continued to stumble on slowing growth in Europe, political uncertainty in Italy, and a resurgence in the U.S. dollar. For the six-month period overall, U.S. stocks advanced modestly, but non-U.S. stocks were generally flat. Meanwhile, U.S. bond returns declined as interest rates and inflation increased. Non-U.S. bonds also declined, but only fractionally.
In this environment of heightened global market volatility, improving global growth, and differing central bank strategies, investors likely will face new opportunities and challenges in the months ahead. We believe this scenario warrants a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2018 | |
Top Ten Holdings | % of net assets |
Tencent Holdings Ltd. | 5.8% |
Alibaba Group Holding Ltd. ADR | 4.5% |
Samsung Electronics Co. Ltd. | 4.3% |
Taiwan Semiconductor Manufacturing Co. Ltd. | 3.4% |
Industrial & Commercial Bank of China Ltd., H Shares | 2.4% |
CNOOC Ltd. | 2.2% |
Naspers Ltd., N Shares | 2.1% |
HDFC Bank Ltd. | 1.9% |
China Construction Bank Corp., H Shares | 1.8% |
Bharat Financial Inclusion Ltd. | 1.7% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 97.3% |
Temporary Cash Investments | 4.0% |
Other Assets and Liabilities | (1.3)% |
Investments by Country | % of net assets |
China | 34.5% |
South Korea | 13.3% |
Taiwan | 9.8% |
India | 8.5% |
Brazil | 7.2% |
South Africa | 4.2% |
Russia | 3.6% |
Thailand | 3.2% |
Indonesia | 2.3% |
Mexico | 2.0% |
Other Countries | 8.7% |
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, 2017 to May 31, 2018.
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 12/1/17 | Ending Account Value 5/31/18 | Expenses Paid During Period(1) 12/1/17 - 5/31/18 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $997.00 | $5.53 | 1.11% |
I Class | $1,000 | $998.20 | $4.53 | 0.91% |
Y Class | $1,000 | $999.20 | $3.79 | 0.76% |
A Class | $1,000 | $995.30 | $6.77 | 1.36% |
C Class | $1,000 | $992.10 | $10.48 | 2.11% |
R Class | $1,000 | $994.50 | $8.01 | 1.61% |
R5 Class | $1,000 | $998.30 | $4.53 | 0.91% |
R6 Class | $1,000 | $998.80 | $3.79 | 0.76% |
Hypothetical | ||||
Investor Class | $1,000 | $1,019.40 | $5.59 | 1.11% |
I Class | $1,000 | $1,020.39 | $4.58 | 0.91% |
Y Class | $1,000 | $1,021.14 | $3.83 | 0.76% |
A Class | $1,000 | $1,018.15 | $6.84 | 1.36% |
C Class | $1,000 | $1,014.41 | $10.60 | 2.11% |
R Class | $1,000 | $1,016.90 | $8.10 | 1.61% |
R5 Class | $1,000 | $1,020.39 | $4.58 | 0.91% |
R6 Class | $1,000 | $1,021.14 | $3.83 | 0.76% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
5
Schedule of Investments |
MAY 31, 2018 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 97.3% | |||||
Brazil — 7.2% | |||||
Ambev SA ADR | 5,010,128 | $ | 26,353,273 | ||
Banco do Brasil SA | 1,617,700 | 13,119,880 | |||
Itau Unibanco Holding SA ADR | 2,238,945 | 25,859,815 | |||
Localiza Rent a Car SA | 3,057,300 | 20,229,075 | |||
Lojas Renner SA | 1,705,100 | 13,525,283 | |||
Magazine Luiza SA | 1,186,900 | 34,347,616 | |||
Pagseguro Digital Ltd., Class A(1) | 680,323 | 22,634,346 | |||
Petrobras Distribuidora SA | 2,813,000 | 13,711,321 | |||
Vale SA ADR | 1,289,875 | 17,542,300 | |||
187,322,909 | |||||
Chile — 1.3% | |||||
SACI Falabella | 3,590,254 | 33,614,840 | |||
China — 34.5% | |||||
Alibaba Group Holding Ltd. ADR(1) | 590,952 | 117,014,405 | |||
Anhui Conch Cement Co. Ltd., H Shares | 6,115,500 | 37,406,683 | |||
Brilliance China Automotive Holdings Ltd. | 12,702,000 | 23,714,972 | |||
China Construction Bank Corp., H Shares | 46,502,000 | 46,838,071 | |||
China Gas Holdings Ltd. | 8,330,400 | 34,449,505 | |||
China Lodging Group Ltd. ADR | 646,828 | 28,466,900 | |||
China Resources Beer Holdings Co. Ltd. | 9,080,000 | 44,056,984 | |||
CIFI Holdings Group Co. Ltd. | 18,800,000 | 14,430,292 | |||
CNOOC Ltd. | 33,921,000 | 57,480,668 | |||
Geely Automobile Holdings Ltd. | 8,786,000 | 24,700,811 | |||
Haier Electronics Group Co. Ltd. | 5,848,000 | 20,991,496 | |||
Industrial & Commercial Bank of China Ltd., H Shares | 75,002,645 | 61,702,824 | |||
KWG Property Holding Ltd. | 14,213,500 | 19,551,761 | |||
MMG Ltd.(1) | 16,880,000 | 12,238,710 | |||
New Oriental Education & Technology Group, Inc. ADR | 354,815 | 35,293,448 | |||
Nine Dragons Paper Holdings Ltd. | 7,523,000 | 11,875,911 | |||
Ping An Insurance Group Co. of China Ltd., H Shares | 3,415,000 | 33,230,425 | |||
Shenzhou International Group Holdings Ltd. | 2,988,000 | 34,903,135 | |||
Sunny Optical Technology Group Co. Ltd. | 1,085,600 | 21,861,794 | |||
TAL Education Group ADR(1) | 727,774 | 30,901,284 | |||
Tencent Holdings Ltd. | 2,978,100 | 150,119,030 | |||
Weibo Corp. ADR(1) | 108,845 | 11,092,394 | |||
Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., H Shares(1) | 4,956,500 | 20,219,111 | |||
892,540,614 | |||||
Czech Republic — 0.9% | |||||
Moneta Money Bank AS | 6,485,383 | 22,653,185 | |||
Egypt — 0.6% | |||||
Commercial International Bank Egypt S.A.E. | 1,772,166 | 8,343,852 |
6
Shares | Value | ||||
Commercial International Bank Egypt S.A.E. GDR | 1,344,881 | $ | 6,299,368 | ||
14,643,220 | |||||
Hungary — 1.0% | |||||
OTP Bank Nyrt | 729,626 | 26,099,401 | |||
India — 8.5% | |||||
Ashok Leyland Ltd. | 8,914,168 | 19,486,818 | |||
Balkrishna Industries Ltd. | 1,093,382 | 18,339,183 | |||
Bharat Financial Inclusion Ltd.(1) | 2,562,891 | 44,216,725 | |||
Future Retail Ltd.(1) | 2,117,692 | 18,432,939 | |||
Godrej Consumer Products Ltd. | 1,238,292 | 20,855,605 | |||
HDFC Bank Ltd. | 1,480,753 | 48,583,602 | |||
InterGlobe Aviation Ltd. | 309,022 | 5,574,931 | |||
Larsen & Toubro Ltd. | 1,269,117 | 25,725,387 | |||
Motherson Sumi Systems Ltd. | 3,952,686 | 18,114,614 | |||
219,329,804 | |||||
Indonesia — 2.3% | |||||
Bank Rakyat Indonesia Persero Tbk PT | 153,037,300 | 33,826,048 | |||
Telekomunikasi Indonesia Persero Tbk PT | 38,027,800 | 9,505,449 | |||
United Tractors Tbk PT | 6,693,300 | 16,829,130 | |||
60,160,627 | |||||
Malaysia — 0.8% | |||||
CIMB Group Holdings Bhd | 10,983,715 | 16,116,065 | |||
My EG Services Bhd | 20,805,450 | 4,633,102 | |||
20,749,167 | |||||
Mexico ��� 2.0% | |||||
America Movil SAB de CV, Series L ADR | 1,297,495 | 20,124,148 | |||
Mexichem SAB de CV | 10,913,553 | 30,774,078 | |||
50,898,226 | |||||
Peru — 1.0% | |||||
Credicorp Ltd. | 119,977 | 26,565,307 | |||
Philippines — 0.9% | |||||
Ayala Land, Inc. | 30,099,800 | 22,767,363 | |||
Russia — 3.6% | |||||
Novatek PJSC GDR | 202,398 | 29,168,206 | |||
Sberbank of Russia PJSC ADR (London) | 1,761,672 | 25,258,642 | |||
X5 Retail Group NV GDR | 403,898 | 11,471,506 | |||
Yandex NV, A Shares(1) | 849,422 | 28,472,625 | |||
94,370,979 | |||||
South Africa — 4.2% | |||||
Capitec Bank Holdings Ltd. | 332,868 | 22,844,345 | |||
Discovery Ltd. | 1,386,093 | 16,793,126 | |||
Foschini Group Ltd. (The) | 1,172,446 | 16,956,339 | |||
Naspers Ltd., N Shares | 224,033 | 53,312,720 | |||
109,906,530 | |||||
South Korea — 13.3% | |||||
CJ Logistics Corp.(1) | 175,474 | 24,280,152 | |||
Cosmax, Inc. | 91,544 | 14,379,388 |
7
Shares | Value | ||||
Doosan Infracore Co. Ltd.(1) | 3,499,180 | $ | 33,688,588 | ||
Hana Financial Group, Inc. | 695,301 | 26,757,658 | |||
Hotel Shilla Co. Ltd. | 335,165 | 38,384,677 | |||
Hyundai Heavy Industries Co. Ltd.(1) | 133,986 | 14,175,084 | |||
Mando Corp. | 257,310 | 9,173,215 | |||
Medy-Tox, Inc. | 25,968 | 18,075,908 | |||
Samsung Electronics Co. Ltd. | 2,354,794 | 110,536,538 | |||
Seegene, Inc.(1) | 553,704 | 16,177,873 | |||
SK Hynix, Inc. | 442,477 | 38,145,688 | |||
343,774,769 | |||||
Taiwan — 9.8% | |||||
Airtac International Group | 882,357 | 15,097,888 | |||
ASPEED Technology, Inc. | 423,000 | 12,697,299 | |||
Chailease Holding Co. Ltd. | 8,394,000 | 29,840,585 | |||
Chroma ATE, Inc. | 1,941,000 | 9,636,383 | |||
Globalwafers Co. Ltd. | 1,995,000 | 39,192,548 | |||
Hota Industrial Manufacturing Co. Ltd. | 2,760,434 | 13,297,188 | |||
LandMark Optoelectronics Corp. | 579,000 | 5,773,676 | |||
Powertech Technology, Inc. | 2,484,000 | 7,381,532 | |||
President Chain Store Corp. | 1,833,000 | 18,765,726 | |||
Taiwan Cement Corp. | 9,004,000 | 13,062,115 | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 11,779,939 | 87,898,605 | |||
252,643,545 | |||||
Thailand — 3.2% | |||||
Airports of Thailand PCL | 7,873,600 | 16,833,747 | |||
CP ALL PCL | 13,595,600 | 34,294,966 | |||
Kasikornbank PCL | 1,222,800 | 7,441,408 | |||
Kasikornbank PCL NVDR | 1,620,100 | 9,681,490 | |||
Minor International PCL | 14,960,900 | 15,163,468 | |||
Srisawad Corp. PCL | 322,278 | 353,886 | |||
83,768,965 | |||||
Turkey — 0.9% | |||||
BIM Birlesik Magazalar AS | 879,731 | 13,451,143 | |||
Ford Otomotiv Sanayi AS | 715,608 | 10,111,925 | |||
23,563,068 | |||||
United Kingdom — 1.3% | |||||
NMC Health plc | 705,685 | 33,069,188 | |||
TOTAL COMMON STOCKS (Cost $2,259,611,404) | 2,518,441,707 | ||||
TEMPORARY CASH INVESTMENTS — 4.0% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.750%, 8/31/18 - 8/15/44, valued at $57,886,421), in a joint trading account at 1.50%, dated 5/31/18, due 6/1/18 (Delivery value $56,472,617) | 56,470,264 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.75%, 11/15/42, valued at $48,023,509), at 0.74%, dated 5/31/18, due 6/1/18 (Delivery value $47,081,968) | 47,081,000 | ||||
8
Shares | Value | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 72,303 | $ | 72,303 | ||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $103,623,567) | 103,623,567 | ||||
TOTAL INVESTMENT SECURITIES — 101.3% (Cost $2,363,234,971) | 2,622,065,274 | ||||
OTHER ASSETS AND LIABILITIES — (1.3)% | (33,664,180 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 2,588,401,094 |
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Information Technology | 26.6 | % |
Financials | 21.4 | % |
Consumer Discretionary | 18.8 | % |
Consumer Staples | 7.7 | % |
Industrials | 6.7 | % |
Materials | 4.8 | % |
Energy | 3.9 | % |
Health Care | 2.6 | % |
Real Estate | 2.3 | % |
Utilities | 1.3 | % |
Telecommunication Services | 1.2 | % |
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 |
NVDR | - | Non-Voting Depositary Receipt |
(1) Non-income producing.
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2018 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $2,363,234,971) | $ | 2,622,065,274 | |
Foreign currency holdings, at value (cost of $16,804,402) | 16,812,345 | ||
Receivable for investments sold | 5,168,649 | ||
Receivable for capital shares sold | 8,762,570 | ||
Dividends and interest receivable | 3,166,699 | ||
2,655,975,537 | |||
Liabilities | |||
Payable for investments purchased | 59,076,709 | ||
Payable for capital shares redeemed | 4,191,676 | ||
Accrued management fees | 2,498,904 | ||
Distribution and service fees payable | 53,420 | ||
Accrued foreign taxes | 1,753,734 | ||
67,574,443 | |||
Net Assets | $ | 2,588,401,094 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 2,360,851,890 | |
Distributions in excess of net investment income | (825,227 | ) | |
Accumulated net realized loss | (28,581,914 | ) | |
Net unrealized appreciation | 256,956,345 | ||
$ | 2,588,401,094 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $1,212,278,412 | 102,034,949 | $11.88 | |||
I Class, $0.01 Par Value | $1,040,617,310 | 85,399,024 | $12.19 | |||
Y Class, $0.01 Par Value | $729,734 | 59,726 | $12.22 | |||
A Class, $0.01 Par Value | $82,842,121 | 7,227,382 | $11.46* | |||
C Class, $0.01 Par Value | $39,676,048 | 3,788,117 | $10.47 | |||
R Class, $0.01 Par Value | $6,098,159 | 529,262 | $11.52 | |||
R5 Class, $0.01 Par Value | $5,517,143 | 452,337 | $12.20 | |||
R6 Class, $0.01 Par Value | $200,642,167 | 16,449,989 | $12.20 |
*Maximum offering price $12.16 (net asset value divided by 0.9425).
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $1,829,437) | $ | 15,218,856 | |
Interest | 374,410 | ||
15,593,266 | |||
Expenses: | |||
Management fees | 13,541,791 | ||
Distribution and service fees: | |||
A Class | 92,774 | ||
C Class | 174,721 | ||
R Class | 14,968 | ||
Directors' fees and expenses | 28,633 | ||
Other expenses | 26,049 | ||
13,878,936 | |||
Fees waived(1) | (2,372,370 | ) | |
11,506,566 | |||
Net investment income (loss) | 4,086,700 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions (net of foreign tax expenses paid (refunded) of $388,109) | (26,774,644 | ) | |
Foreign currency translation transactions | (1,489,559 | ) | |
(28,264,203 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $1,229,095) | (33,194,820 | ) | |
Translation of assets and liabilities in foreign currencies | (126,960 | ) | |
(33,321,780 | ) | ||
Net realized and unrealized gain (loss) | (61,585,983 | ) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (57,499,283 | ) |
(1) | Amount consists of $1,260,678, $824,771, $90, $83,433, $38,072, $6,896, $2,497 and $155,933 for 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, 2018 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2017 | ||||||
Increase (Decrease) in Net Assets | May 31, 2018 | November 30, 2017 | ||||
Operations | ||||||
Net investment income (loss) | $ | 4,086,700 | $ | 2,216,425 | ||
Net realized gain (loss) | (28,264,203 | ) | 81,483,504 | |||
Change in net unrealized appreciation (depreciation) | (33,321,780 | ) | 206,829,821 | |||
Net increase (decrease) in net assets resulting from operations | (57,499,283 | ) | 290,529,750 | |||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (2,878,436 | ) | (1,705,705 | ) | ||
I Class | (3,835,501 | ) | (210,725 | ) | ||
Y Class | (868 | ) | — | |||
A Class | — | (23,887 | ) | |||
R5 Class | (17,904 | ) | — | |||
R6 Class | (1,005,150 | ) | (256,448 | ) | ||
From net realized gains: | ||||||
Investor Class | (5,766,403 | ) | — | |||
I Class | (4,158,562 | ) | — | |||
Y Class | (891 | ) | — | |||
A Class | (390,371 | ) | — | |||
C Class | (207,089 | ) | — | |||
R Class | (30,409 | ) | — | |||
R5 Class | (23,245 | ) | — | |||
R6 Class | (810,821 | ) | — | |||
Decrease in net assets from distributions | (19,125,650 | ) | (2,196,765 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 1,092,700,312 | 696,574,962 | ||||
Redemption Fees | ||||||
Increase in net assets from redemption fees | — | 114,873 | ||||
Net increase (decrease) in net assets | 1,016,075,379 | 985,022,820 | ||||
Net Assets | ||||||
Beginning of period | 1,572,325,715 | 587,302,895 | ||||
End of period | $ | 2,588,401,094 | $ | 1,572,325,715 | ||
Undistributed (distributions in excess of) net investment income | $ | (825,227 | ) | $ | 2,825,932 |
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2018 (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, 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 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 — Prior to October 9, 2017, the fund may have imposed a 2.00% redemption fee on shares held less than 60 days. The fee was not applicable to all classes. The redemption fee was retained by the fund to help 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. own, in aggregate, 7% 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 non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. From December 1, 2017 through March 31, 2018, the rate of the fee was determined by applying a fee rate calculation formula. This formula took 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 included the assets of NT Emerging Markets Fund, one fund in a series issued by the corporation. The annual management fee schedule ranged from 1.250% to 1.850% for the Investor Class, A Class, C Class and R Class. The annual management fee schedule ranged from 1.050% to 1.650% for the I Class and R5 Class and 0.900% to 1.500% for the Y Class and R6 Class. From December 1, 2017 through March 31, 2018, the investment advisor agreed to waive 0.350% of the fund’s management fee. Effective April 1, 2018, the stepped annual management fee schedule and the waiver were terminated. The annual management fee is 1.25% for the Investor Class, A Class, C Class and R Class, 1.05% for the I Class and R5 Class and 0.90% for the Y Class and R6 Class.
The effective annual management fee before and after waiver for each class for the period ended May 31, 2018 are as follows:
Effective Annual Management Fee | ||
Before Waiver | After Waiver | |
Investor Class | 1.33% | 1.11% |
I Class | 1.13% | 0.91% |
Y Class | 0.98% | 0.76% |
A Class | 1.33% | 1.11% |
C Class | 1.33% | 1.11% |
R Class | 1.33% | 1.11% |
R5 Class | 1.13% | 0.91% |
R6 Class | 0.98% | 0.76% |
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, 2018 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases were $993,456 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, 2018 were $1,442,544,611 and $391,609,401, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2018 | Year ended November 30, 2017(1) | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 500,000,000 | 500,000,000 | ||||||||
Sold | 40,235,294 | $ | 504,319,466 | 51,102,270 | $ | 545,843,887 | ||||
Issued in reinvestment of distributions | 651,263 | 8,388,269 | 170,927 | 1,625,512 | ||||||
Redeemed | (12,466,421 | ) | (154,487,557 | ) | (32,531,459 | ) | (341,641,540 | ) | ||
28,420,136 | 358,220,178 | 18,741,738 | 205,827,859 | |||||||
I Class/Shares Authorized | 210,000,000 | 210,000,000 | ||||||||
Sold | 51,390,180 | 660,858,154 | 40,142,662 | 459,185,069 | ||||||
Issued in reinvestment of distributions | 520,633 | 6,877,558 | 21,610 | 210,697 | ||||||
Redeemed | (7,512,310 | ) | (95,728,393 | ) | (3,375,540 | ) | (38,606,224 | ) | ||
44,398,503 | 572,007,319 | 36,788,732 | 420,789,542 | |||||||
Y Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 59,092 | 748,977 | 511 | 5,000 | ||||||
Issued in reinvestment of distributions | 133 | 1,759 | — | — | ||||||
Redeemed | (10 | ) | (125 | ) | — | — | ||||
59,215 | 750,611 | 511 | 5,000 | |||||||
A Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 3,008,669 | 35,990,708 | 5,641,981 | 58,277,889 | ||||||
Issued in reinvestment of distributions | 27,068 | 336,722 | 2,219 | 20,367 | ||||||
Redeemed | (1,132,721 | ) | (13,442,803 | ) | (4,890,160 | ) | (47,362,727 | ) | ||
1,903,016 | 22,884,627 | 754,040 | 10,935,529 | |||||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 1,620,832 | 17,979,528 | 1,827,106 | 17,797,424 | ||||||
Issued in reinvestment of distributions | 15,833 | 180,175 | — | — | ||||||
Redeemed | (201,376 | ) | (2,197,533 | ) | (239,477 | ) | (2,152,216 | ) | ||
1,435,289 | 15,962,170 | 1,587,629 | 15,645,208 | |||||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 213,045 | 2,552,497 | 296,970 | 3,157,947 | ||||||
Issued in reinvestment of distributions | 2,430 | 30,398 | — | — | ||||||
Redeemed | (99,455 | ) | (1,197,544 | ) | (164,675 | ) | (1,695,228 | ) | ||
116,020 | 1,385,351 | 132,295 | 1,462,719 | |||||||
R5 Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 459,737 | 5,862,690 | 3,703 | 44,866 | ||||||
Issued in reinvestment of distributions | 3,113 | 41,149 | — | — | ||||||
Redeemed | (14,216 | ) | (181,162 | ) | — | — | ||||
448,634 | 5,722,677 | 3,703 | 44,866 | |||||||
R6 Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 10,191,213 | 131,430,412 | 5,856,775 | 66,206,392 | ||||||
Issued in reinvestment of distributions | 136,929 | 1,810,200 | 26,302 | 256,448 | ||||||
Redeemed | (1,372,939 | ) | (17,473,233 | ) | (2,255,306 | ) | (24,598,601 | ) | ||
8,955,203 | 115,767,379 | 3,627,771 | 41,864,239 | |||||||
Net increase (decrease) | 85,736,016 | $ | 1,092,700,312 | 61,636,419 | $ | 696,574,962 |
(1) | April 10, 2017 (commencement of sale) through November 30, 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 | ||||||||
Brazil | $ | 92,389,734 | $ | 94,933,175 | — | |||
China | 222,768,431 | 669,772,183 | — | |||||
Mexico | 20,124,148 | 30,774,078 | — | |||||
Peru | 26,565,307 | — | — | |||||
Russia | 28,472,625 | 65,898,354 | — | |||||
Other Countries | — | 1,266,743,672 | — | |||||
Temporary Cash Investments | 72,303 | 103,551,264 | — | |||||
$ | 390,392,548 | $ | 2,231,672,726 | — |
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.
Investing a significant portion of assets in one country or region makes the fund more dependent upon the political and economic circumstances of that particular country or region than a fund that is more widely diversified.
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 | $ | 2,366,430,619 | |
Gross tax appreciation of investments | $ | 361,584,377 | |
Gross tax depreciation of investments | (105,949,722 | ) | |
Net tax appreciation (depreciation) of investments | $ | 255,634,655 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
19
Financial Highlights |
For a Share Outstanding Throughout the Years Ended 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 | |||||||||||||||||
2018(3) | $12.00 | 0.02 | (0.05) | (0.03) | (0.03) | (0.06) | (0.09) | $11.88 | (0.30)% | 1.11%(4) | 1.33%(4) | 0.31%(4) | 0.09%(4) | 18% | $1,212,278 | ||
2017 | $8.57 | 0.02 | 3.44 | 3.46 | (0.03) | — | (0.03) | $12.00 | 40.46% | 1.18% | 1.50% | 0.19% | (0.13)% | 47% | $883,436 | ||
2016 | $8.10 | 0.02 | 0.46 | 0.48 | (0.01) | — | (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) | — | (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) | — | (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) | — | (0.03) | $8.87 | 6.48% | 1.63% | 1.72% | 0.17% | 0.08% | 68% | $421,274 | ||
I Class | |||||||||||||||||
2018(3) | $12.32 | 0.03 | (0.04) | (0.01) | (0.06) | (0.06) | (0.12) | $12.19 | (0.18)% | 0.91%(4) | 1.13%(4) | 0.51%(4) | 0.29%(4) | 18% | $1,040,617 | ||
2017 | $8.79 | 0.04 | 3.54 | 3.58 | (0.05) | — | (0.05) | $12.32 | 40.86% | 0.94% | 1.26% | 0.43% | 0.11% | 47% | $505,000 | ||
2016 | $8.31 | 0.04 | 0.47 | 0.51 | (0.03) | — | (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) | — | (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) | — | (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) | — | (0.05) | $9.09 | 6.77% | 1.43% | 1.52% | 0.37% | 0.28% | 68% | $32,452 | ||
Y Class | |||||||||||||||||
2018(3) | $12.34 | 0.07 | (0.07) | — | (0.06) | (0.06) | (0.12) | $12.22 | (0.08)% | 0.76%(4) | 0.98%(4) | 0.66%(4) | 0.44%(4) | 18% | $730 | ||
2017(5) | $9.79 | 0.07 | 2.48 | 2.55 | — | — | — | $12.34 | 26.05% | 0.77%(4) | 1.12%(4) | 0.91%(4) | 0.56%(4) | 47%(6) | $6 |
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 | |||||||||||||||||
2018(3) | $11.57 | —(7) | (0.05) | (0.05) | — | (0.06) | (0.06) | $11.46 | (0.47)% | 1.36%(4) | 1.58%(4) | 0.06%(4) | (0.16)%(4) | 18% | $82,842 | ||
2017 | $8.26 | —(7) | 3.32 | 3.32 | (0.01) | — | (0.01) | $11.57 | 40.16% | 1.43% | 1.75% | (0.06)% | (0.38)% | 47% | $61,586 | ||
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) | — | (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) | — | (0.01) | $8.59 | 6.30% | 1.88% | 1.97% | (0.08)% | (0.17)% | 68% | $11,575 | ||
C Class | |||||||||||||||||
2018(3) | $10.61 | (0.04) | (0.04) | (0.08) | — | (0.06) | (0.06) | $10.47 | (0.79)% | 2.11%(4) | 2.33%(4) | (0.69)%(4) | (0.91)%(4) | 18% | $39,676 | ||
2017 | $7.63 | (0.08) | 3.06 | 2.98 | — | — | — | $10.61 | 39.06% | 2.16% | 2.48% | (0.79)% | (1.11)% | 47% | $24,972 | ||
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) | — | (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 |
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 | |||||||||||||||||
2018(3) | $11.64 | (0.01) | (0.05) | (0.06) | — | (0.06) | (0.06) | $11.52 | (0.55)% | 1.61%(4) | 1.83%(4) | (0.19)%(4) | (0.41)%(4) | 18% | $6,098 | ||
2017 | $8.33 | (0.02) | 3.33 | 3.31 | — | — | — | $11.64 | 39.74% | 1.68% | 2.00% | (0.31)% | (0.63)% | 47% | $4,811 | ||
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) | — | (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 | ||
R5 Class | |||||||||||||||||
2018(3) | $12.32 | 0.04 | (0.05) | (0.01) | (0.05) | (0.06) | (0.11) | $12.20 | (0.17)% | 0.91%(4) | 1.13%(4) | 0.51%(4) | 0.29%(4) | 18% | $5,517 | ||
2017(5) | $9.78 | 0.03 | 2.51 | 2.54 | – | – | – | $12.32 | 25.97% | 0.92%(4) | 1.27%(4) | 0.78%(4) | 0.43%(4) | 47%(6) | $46 | ||
R6 Class | |||||||||||||||||
2018(3) | $12.34 | 0.04 | (0.04) | — | (0.08) | (0.06) | (0.14) | $12.20 | (0.12)% | 0.76%(4) | 0.98%(4) | 0.66%(4) | 0.44%(4) | 18% | $200,642 | ||
2017 | $8.81 | 0.06 | 3.53 | 3.59 | (0.06) | — | (0.06) | $12.34 | 40.98% | 0.83% | 1.15% | 0.54% | 0.22% | 47% | $92,470 | ||
2016 | $8.33 | 0.06 | 0.46 | 0.52 | (0.04) | — | (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) | — | (0.04) | $8.33 | (9.58)% | 1.08% | 1.33% | 0.65% | 0.40% | 58% | $24,965 | ||
2014 | $9.09 | —(7) | 0.20 | 0.20 | (0.04) | — | (0.04) | $9.25 | 2.23% | 1.10% | 1.35% | 0.64% | 0.39% | 74% | $15,174 | ||
2013(8) | $8.46 | —(7) | 0.63 | 0.63 | — | — | — | $9.09 | 7.45% | 1.12%(4) | 1.37%(4) | 0.14%(4) | (0.11)%(4) | 68%(9) | $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, 2018 (unaudited). |
(4) | Annualized. |
(5) | April 10, 2017 (commencement of sale) through November 30, 2017. |
(6) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2017. |
(7) | Per-share amount was less than $0.005. |
(8) | July 26, 2013 (commencement of sale) through November 30, 2013. |
(9) | 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 retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
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. | ||
©2018 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92633 1807 |
![acihorizblkd26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/acihorizblkd26.jpg)
Semiannual Report | |
May 31, 2018 | |
Emerging Markets Small Cap Fund | |
Investor Class (AECVX) | |
I Class (AECSX) | |
A Class (AECLX) | |
C Class (AECHX) | |
R Class (AECMX) | |
R6 Class (AECTX) |
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/0000872825-18-000059/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the six months ended May 31, 2018. 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.
Volatility’s Rise Restrains Returns
Global stocks continued to rally early in the reporting period, bolstered by improving growth trends throughout the world, positive corporate earnings results, generally muted inflation, and still-low interest rates. For example, U.S. stocks were notably strong, with the S&P 500 Index gaining nearly 8% for the two months ended January 31, 2018. Outside the U.S., returns were similarly robust, as central bank accommodations enhanced the positive economic and earnings backdrop.
Sentiment changed swiftly and sharply in early February. U.S. stocks plunged after the U.S. Department of Labor announced wages grew at their fastest year-over-year pace in nine years. This news, coupled with other positive economic data and rising inflation expectations, pushed interest rates higher and triggered fears that the Federal Reserve (the Fed) would ramp up its rate-hike campaign. In addition, the U.S. announced a series of tariffs that sparked fears of a global trade war. However, by the end of the reporting period, U.S. market volatility subsided somewhat. U.S. economic and inflation data and the Fed’s rate-hike strategy were generally aligned with investor expectations, while trade concerns eased. But outside the U.S., stocks continued to stumble on slowing growth in Europe, political uncertainty in Italy, and a resurgence in the U.S. dollar. For the six-month period overall, U.S. stocks advanced modestly, but non-U.S. stocks were generally flat. Meanwhile, U.S. bond returns declined as interest rates and inflation increased. Non-U.S. bonds also declined, but only fractionally.
In this environment of heightened global market volatility, improving global growth, and differing central bank strategies, investors likely will face new opportunities and challenges in the months ahead. We believe this scenario warrants a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2018 | |
Top Ten Holdings | % of net assets |
Globalwafers Co. Ltd. | 2.1% |
China Resources Cement Holdings Ltd. | 2.1% |
Cosmax, Inc. | 2.0% |
Geopark Ltd. | 2.0% |
Koh Young Technology, Inc. | 1.8% |
Hotel Shilla Co. Ltd. | 1.7% |
TCI Co. Ltd. | 1.7% |
KWG Property Holding Ltd. | 1.7% |
Li Ning Co. Ltd. | 1.7% |
Magazine Luiza SA | 1.7% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 98.9% |
Temporary Cash Investments | 1.1% |
Other Assets and Liabilities | —* |
* Category is less than 0.05% of total net assets. | |
Investments by Country | % of net assets |
China | 30.7% |
South Korea | 15.9% |
Taiwan | 14.3% |
India | 6.7% |
Brazil | 6.5% |
South Africa | 4.6% |
Thailand | 3.9% |
Chile | 3.4% |
Mexico | 2.6% |
Russia | 2.2% |
Indonesia | 2.2% |
Other Countries | 5.9% |
Cash and Equivalents** | 1.1% |
** 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, 2017 to May 31, 2018.
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 12/1/17 | Ending Account Value 5/31/18 | Expenses Paid During Period(1) 12/1/17 - 5/31/18 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,041.90 | $8.20 | 1.61% |
I Class | $1,000 | $1,042.40 | $7.18 | 1.41% |
A Class | $1,000 | $1,040.10 | $9.46 | 1.86% |
C Class | $1,000 | $1,036.90 | $13.25 | 2.61% |
R Class | $1,000 | $1,039.00 | $10.73 | 2.11% |
R6 Class | $1,000 | $1,043.90 | $6.42 | 1.26% |
Hypothetical | ||||
Investor Class | $1,000 | $1,016.90 | $8.10 | 1.61% |
I Class | $1,000 | $1,017.90 | $7.09 | 1.41% |
A Class | $1,000 | $1,015.66 | $9.35 | 1.86% |
C Class | $1,000 | $1,011.92 | $13.09 | 2.61% |
R Class | $1,000 | $1,014.41 | $10.60 | 2.11% |
R6 Class | $1,000 | $1,018.65 | $6.34 | 1.26% |
(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. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
5
Schedule of Investments |
MAY 31, 2018 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 98.9% | |||||
Brazil — 6.5% | |||||
Azul SA ADR(1) | 4,049 | $ | 86,568 | ||
Banco ABC Brasil SA Preference Shares(1) | 23,857 | 104,736 | |||
Bradespar SA Preference Shares | 9,900 | 82,261 | |||
CVC Brasil Operadora e Agencia de Viagens SA | 11,600 | 158,553 | |||
Fleury SA | 15,500 | 102,022 | |||
Localiza Rent a Car SA | 19,000 | 125,716 | |||
Magazine Luiza SA | 8,100 | 234,405 | |||
894,261 | |||||
Chile — 3.4% | |||||
Geopark Ltd.(1) | 17,435 | 272,334 | |||
Itau CorpBanca | 19,648,108 | 200,640 | |||
472,974 | |||||
China — 30.7% | |||||
Baozun, Inc. ADR(1) | 2,750 | 168,603 | |||
Brilliance China Automotive Holdings Ltd. | 44,000 | 82,149 | |||
China Agri-Industries Holdings Ltd. | 288,000 | 122,128 | |||
China Everbright Greentech Ltd. | 156,000 | 173,617 | |||
China Foods Ltd. | 168,000 | 84,084 | |||
China Lodging Group Ltd. ADR | 4,724 | 207,903 | |||
China Resources Cement Holdings Ltd. | 248,000 | 290,087 | |||
China Yongda Automobiles Services Holdings Ltd. | 127,000 | 151,782 | |||
China ZhengTong Auto Services Holdings Ltd. | 198,500 | 170,260 | |||
CIFI Holdings Group Co. Ltd. | 188,000 | 144,303 | |||
Far East Horizon Ltd. | 139,000 | 147,197 | |||
GDS Holdings Ltd. ADR(1) | 3,137 | 118,610 | |||
Hollysys Automation Technologies Ltd. | 5,048 | 120,496 | |||
Kingsoft Corp. Ltd. | 20,000 | 62,569 | |||
KWG Property Holding Ltd. | 174,000 | 239,350 | |||
Lee & Man Paper Manufacturing Ltd. | 107,000 | 124,815 | |||
Li Ning Co. Ltd.(1) | 197,000 | 235,346 | |||
Maanshan Iron & Steel Co. Ltd., H Shares(1) | 136,000 | 65,337 | |||
MMG Ltd.(1) | 292,000 | 211,712 | |||
Nine Dragons Paper Holdings Ltd. | 32,000 | 50,516 | |||
SINA Corp.(1) | 612 | 55,582 | |||
Sunny Optical Technology Group Co. Ltd. | 7,100 | 142,980 | |||
TAL Education Group ADR(1) | 4,238 | 179,945 | |||
Uni-President China Holdings Ltd. | 165,000 | 177,578 | |||
Weibo Corp. ADR(1) | 987 | 100,585 | |||
West China Cement Ltd. | 806,000 | 150,852 | |||
Wisdom Education International Holdings Co. Ltd. | 178,000 | 154,818 | |||
Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., H Shares(1) | 32,500 | 132,578 | |||
Zhongsheng Group Holdings Ltd. | 53,000 | 169,375 | |||
4,235,157 | |||||
Czech Republic — 0.8% | |||||
Moneta Money Bank AS | 30,153 | 105,323 |
6
Shares | Value | ||||
Greece — 1.0% | |||||
JUMBO SA | 8,606 | $ | 138,253 | ||
India — 6.7% | |||||
Balkrishna Industries Ltd. | 8,706 | 146,025 | |||
Bharat Financial Inclusion Ltd.(1) | 12,836 | 221,455 | |||
Future Retail Ltd.(1) | 22,907 | 199,389 | |||
Future Supply Chain Solutions Ltd.(1) | 8,659 | 86,405 | |||
Graphite India Ltd. | 11,509 | 150,994 | |||
Zydus Wellness Ltd.(1) | 6,994 | 125,049 | |||
929,317 | |||||
Indonesia — 2.2% | |||||
Ace Hardware Indonesia Tbk PT | 1,993,100 | 179,007 | |||
AKR Corporindo Tbk PT | 149,900 | 52,924 | |||
Waskita Karya Persero Tbk PT | 409,200 | 68,014 | |||
299,945 | |||||
Malaysia — 0.9% | |||||
Carlsberg Brewery Malaysia Bhd | 14,500 | 72,129 | |||
My EG Services Bhd | 260,500 | 58,010 | |||
130,139 | |||||
Mexico — 2.6% | |||||
Alsea SAB de CV | 52,234 | 170,127 | |||
Regional SAB de CV | 33,230 | 184,922 | |||
355,049 | |||||
Philippines — 1.0% | |||||
Bloomberry Resorts Corp. | 702,600 | 144,228 | |||
Russia — 2.2% | |||||
TCS Group Holding plc GDR | 6,116 | 124,662 | |||
X5 Retail Group NV GDR | 2,880 | 81,798 | |||
Yandex NV, A Shares(1) | 2,813 | 94,292 | |||
300,752 | |||||
South Africa — 4.6% | |||||
Capitec Bank Holdings Ltd. | 2,231 | 153,111 | |||
Dis-Chem Pharmacies Ltd. | 44,598 | 100,528 | |||
Discovery Ltd. | 7,362 | 89,194 | |||
Foschini Group Ltd. (The) | 9,473 | 137,002 | |||
JSE Ltd. | 10,736 | 153,024 | |||
632,859 | |||||
South Korea — 15.9% | |||||
CJ Logistics Corp.(1) | 959 | 132,696 | |||
Cosmax, Inc. | 1,782 | 279,910 | |||
Doosan Infracore Co. Ltd.(1) | 19,739 | 190,039 | |||
Fila Korea Ltd. | 6,705 | 180,744 | |||
Hotel Shilla Co. Ltd. | 2,102 | 240,731 | |||
Hyundai Mipo Dockyard Co. Ltd.(1) | 2,049 | 177,388 | |||
Kakao M Corp. | 1,316 | 101,184 | |||
Koh Young Technology, Inc. | 2,860 | 251,426 | |||
Kumho Petrochemical Co. Ltd. | 1,543 | 149,736 | |||
Mando Corp. | 2,050 | 73,083 | |||
Medy-Tox, Inc. | 239 | 166,364 | |||
OCI Co. Ltd. | 863 | 105,429 |
7
Shares | Value | ||||
Seegene, Inc.(1) | 4,819 | $ | 140,799 | ||
2,189,529 | |||||
Taiwan — 14.3% | |||||
Airtac International Group | 6,446 | 110,297 | |||
ASPEED Technology, Inc. | 7,000 | 210,121 | |||
Chailease Holding Co. Ltd. | 64,000 | 227,519 | |||
Chroma ATE, Inc. | 39,000 | 193,621 | |||
Global PMX Co. Ltd. | 23,000 | 124,533 | |||
Globalwafers Co. Ltd. | 15,000 | 294,681 | |||
Hota Industrial Manufacturing Co. Ltd. | 15,829 | 76,249 | |||
LandMark Optoelectronics Corp. | 11,000 | 109,690 | |||
Macronix International(1) | 106,225 | 173,903 | |||
Powertech Technology, Inc. | 22,000 | 65,376 | |||
TCI Co. Ltd. | 18,411 | 240,062 | |||
Vanguard International Semiconductor Corp. | 67,000 | 146,548 | |||
1,972,600 | |||||
Thailand — 3.9% | |||||
Bangkok Chain Hospital PCL | 395,400 | 202,328 | |||
Digital Telecommunications Infrastructure Fund | 139,300 | 63,140 | |||
Erawan Group PCL (The) | 706,200 | 179,571 | |||
Minor International PCL | 90,400 | 91,624 | |||
Srisawad Corp. PCL | 3,129 | 3,436 | |||
540,099 | |||||
Turkey — 1.9% | |||||
Mavi Giyim Sanayi Ve Ticaret AS, B Shares | 9,430 | 101,465 | |||
TAV Havalimanlari Holding AS | 20,289 | 98,304 | |||
Tofas Turk Otomobil Fabrikasi AS | 12,378 | 68,325 | |||
268,094 | |||||
United Kingdom — 0.3% | |||||
DP Eurasia NV(1) | 22,943 | 48,811 | |||
TOTAL COMMON STOCKS (Cost $11,510,711) | 13,657,390 | ||||
TEMPORARY CASH INVESTMENTS — 1.1% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 8/31/18 - 8/15/44, valued at $82,716), in a joint trading account at 1.50%, dated 5/31/18, due 6/1/18 (Delivery value $80,695) | 80,692 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 67,323 | 67,323 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $148,015) | 148,015 | ||||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $11,658,726) | 13,805,405 | ||||
OTHER ASSETS AND LIABILITIES† | 5,198 | ||||
TOTAL NET ASSETS — 100.0% | $ | 13,810,603 |
8
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Consumer Discretionary | 28.5 | % |
Information Technology | 18.2 | % |
Financials | 12.5 | % |
Consumer Staples | 10.6 | % |
Industrials | 9.3 | % |
Materials | 9.0 | % |
Health Care | 4.4 | % |
Real Estate | 2.7 | % |
Energy | 2.0 | % |
Utilities | 1.3 | % |
Telecommunication Services | 0.4 | % |
Cash and Equivalents* | 1.1 | % |
*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, 2018 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $11,658,726) | $ | 13,805,405 | |
Foreign currency holdings, at value (cost of $15,054) | 15,083 | ||
Receivable for capital shares sold | 356 | ||
Dividends and interest receivable | 24,459 | ||
13,845,303 | |||
Liabilities | |||
Payable for capital shares redeemed | 10,000 | ||
Accrued management fees | 19,208 | ||
Distribution and service fees payable | 1,813 | ||
Accrued foreign taxes | 3,679 | ||
34,700 | |||
Net Assets | $ | 13,810,603 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 11,160,472 | |
Distributions in excess of net investment income | (126,147 | ) | |
Undistributed net realized gain | 633,251 | ||
Net unrealized appreciation | 2,143,027 | ||
$ | 13,810,603 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $8,676,490 | 616,763 | $14.07 | |||
I Class, $0.01 Par Value | $1,003,830 | 71,334 | $14.07 | |||
A Class, $0.01 Par Value | $2,042,837 | 145,262 | $14.06* | |||
C Class, $0.01 Par Value | $1,404,809 | 100,145 | $14.03 | |||
R Class, $0.01 Par Value | $393,421 | 27,984 | $14.06 | |||
R6 Class, $0.01 Par Value | $289,216 | 20,548 | $14.08 |
*Maximum offering price $14.92 (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, 2018 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $12,953) | $ | 122,695 | |
Interest | 1,307 | ||
124,002 | |||
Expenses: | |||
Management fees | 106,389 | ||
Distribution and service fees: | |||
A Class | 2,595 | ||
C Class | 7,160 | ||
R Class | 921 | ||
Directors' fees and expenses | 179 | ||
Other expenses | 162 | ||
117,406 | |||
Net investment income (loss) | 6,596 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions (net of foreign tax expenses paid (refunded) of $6,976) | 643,400 | ||
Foreign currency translation transactions | (10,114 | ) | |
633,286 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $26,291) | (270,312 | ) | |
Translation of assets and liabilities in foreign currencies | 52 | ||
(270,260 | ) | ||
Net realized and unrealized gain (loss) | 363,026 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 369,622 |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2017 | ||||||
Increase (Decrease) in Net Assets | May 31, 2018 | November 30, 2017 | ||||
Operations | ||||||
Net investment income (loss) | $ | 6,596 | $ | (28,257 | ) | |
Net realized gain (loss) | 633,286 | 233,726 | ||||
Change in net unrealized appreciation (depreciation) | (270,260 | ) | 2,011,612 | |||
Net increase (decrease) in net assets resulting from operations | 369,622 | 2,217,081 | ||||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (71,132 | ) | (20,088 | ) | ||
I Class | (10,242 | ) | (6,486 | ) | ||
A Class | (15,376 | ) | (8,573 | ) | ||
C Class | (430 | ) | — | |||
R Class | (1,788 | ) | (737 | ) | ||
R6 Class | (3,836 | ) | (2,472 | ) | ||
From net realized gains: | ||||||
Investor Class | (7,792 | ) | — | |||
I Class | (940 | ) | — | |||
A Class | (2,223 | ) | — | |||
C Class | (1,550 | ) | — | |||
R Class | (380 | ) | — | |||
R6 Class | (314 | ) | — | |||
Decrease in net assets from distributions | (116,003 | ) | (38,356 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 1,923,922 | 3,950,648 | ||||
Net increase (decrease) in net assets | 2,177,541 | 6,129,373 | ||||
Net Assets | ||||||
Beginning of period | 11,633,062 | 5,503,689 | ||||
End of period | $ | 13,810,603 | $ | 11,633,062 | ||
Distributions in excess of net investment income | $ | (126,147 | ) | $ | (29,939 | ) |
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2018 (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, 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
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
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 52% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class.
The annual management fee for each class is as follows:
Investor Class | I Class | 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, 2018 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2018 were $6,251,199 and $4,433,079, respectively.
15
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2018 | Year ended November 30, 2017 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 317,388 | $ | 4,598,319 | 426,322 | $ | 5,355,178 | ||||
Issued in reinvestment of distributions | 5,727 | 78,175 | 1,979 | 20,088 | ||||||
Redeemed | (210,242 | ) | (2,990,139 | ) | (151,549 | ) | (1,951,627 | ) | ||
112,873 | 1,686,355 | 276,752 | 3,423,639 | |||||||
I Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 9,946 | 142,456 | — | — | ||||||
Issued in reinvestment of distributions | 820 | 11,182 | 639 | 6,486 | ||||||
Redeemed | (71 | ) | (1,000 | ) | — | — | ||||
10,695 | 152,638 | 639 | 6,486 | |||||||
A Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||
Sold | 560 | 8,493 | 42,584 | 460,431 | ||||||
Issued in reinvestment of distributions | 1,288 | 17,599 | 844 | 8,573 | ||||||
Redeemed | (16 | ) | (217 | ) | (26 | ) | (328 | ) | ||
1,832 | 25,875 | 43,402 | 468,676 | |||||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Issued in reinvestment of distributions | 145 | 1,980 | — | — | ||||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 4,344 | 62,829 | 4,209 | 52,231 | ||||||
Issued in reinvestment of distributions | 159 | 2,168 | 73 | 737 | ||||||
Redeemed | (847 | ) | (12,073 | ) | (287 | ) | (3,593 | ) | ||
3,656 | 52,924 | 3,995 | 49,375 | |||||||
R6 Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Issued in reinvestment of distributions | 304 | 4,150 | 244 | 2,472 | ||||||
Net increase (decrease) | 129,505 | $ | 1,923,922 | 325,032 | $ | 3,950,648 |
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.
16
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | ||||||||
Brazil | $ | 86,568 | $ | 807,693 | — | |||
Chile | 272,334 | 200,640 | — | |||||
China | 951,724 | 3,283,433 | — | |||||
Russia | 94,292 | 206,460 | — | |||||
Other Countries | — | 7,754,246 | — | |||||
Temporary Cash Investments | 67,323 | 80,692 | — | |||||
$ | 1,472,241 | $ | 12,333,164 | — |
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.
Investing a significant portion of assets in one country or region makes the fund more dependent upon the political and economic circumstances of that particular country or region than a fund that is more widely diversified.
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 | $ | 11,659,103 | |
Gross tax appreciation of investments | $ | 2,734,247 | |
Gross tax depreciation of investments | (587,945 | ) | |
Net tax appreciation (depreciation) of investments | $ | 2,146,302 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
17
Financial Highlights |
For a Share Outstanding Throughout the Years Ended 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 | |||||||||||||
2018(4) | $13.66 | 0.02 | 0.55 | 0.57 | (0.14) | (0.02) | (0.16) | $14.07 | 4.19% | 1.61%(5) | 0.23%(5) | 34% | $8,676 |
2017 | $10.45 | (0.03) | 3.33 | 3.30 | (0.09) | — | (0.09) | $13.66 | 31.85% | 1.61% | (0.16)% | 49% | $6,884 |
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 | |||||||||||||
2018(4) | $13.68 | 0.03 | 0.55 | 0.58 | (0.17) | (0.02) | (0.19) | $14.07 | 4.24% | 1.41%(5) | 0.43%(5) | 34% | $1,004 |
2017 | $10.46 | 0.01 | 3.32 | 3.33 | (0.11) | — | (0.11) | $13.68 | 32.18% | 1.41% | 0.04% | 49% | $829 |
2016(6) | $10.00 | 0.05 | 0.41 | 0.46 | — | — | — | $10.46 | 4.60% | 1.40%(5) | 0.79%(5) | 51% | $628 |
A Class | |||||||||||||
2018(4) | $13.64 | —(3) | 0.55 | 0.55 | (0.11) | (0.02) | (0.13) | $14.06 | 4.01% | 1.86%(5) | (0.02)%(5) | 34% | $2,043 |
2017 | $10.43 | (0.04) | 3.31 | 3.27 | (0.06) | — | (0.06) | $13.64 | 31.57% | 1.86% | (0.41)% | 49% | $1,956 |
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 | |||||||||||||
2018(4) | $13.55 | (0.06) | 0.56 | 0.50 | —(3) | (0.02) | (0.02) | $14.03 | 3.69% | 2.61%(5) | (0.77)%(5) | 34% | $1,405 |
2017 | $10.38 | (0.13) | 3.30 | 3.17 | — | — | — | $13.55 | 30.54% | 2.61% | (1.16)% | 49% | $1,355 |
2016(6) | $10.00 | (0.03) | 0.41 | 0.38 | — | — | — | $10.38 | 3.80% | 2.60%(5) | (0.41)%(5) | 51% | $1,038 |
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) | |
R Class | |||||||||||||
2018(4) | $13.62 | (0.02) | 0.55 | 0.53 | (0.07) | (0.02) | (0.09) | $14.06 | 3.90% | 2.11%(5) | (0.27)%(5) | 34% | $393 |
2017 | $10.41 | (0.07) | 3.32 | 3.25 | (0.04) | — | (0.04) | $13.62 | 31.30% | 2.11% | (0.66)% | 49% | $331 |
2016(6) | $10.00 | 0.01 | 0.40 | 0.41 | — | — | — | $10.41 | 4.10% | 2.10%(5) | 0.09%(5) | 51% | $212 |
R6 Class | |||||||||||||
2018(4) | $13.69 | 0.04 | 0.56 | 0.60 | (0.19) | (0.02) | (0.21) | $14.08 | 4.39% | 1.26%(5) | 0.58%(5) | 34% | $289 |
2017 | $10.47 | 0.03 | 3.31 | 3.34 | (0.12) | — | (0.12) | $13.69 | 32.35% | 1.26% | 0.19% | 49% | $277 |
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) | Per share amount was less than $0.005 |
(4) | Six months ended May 31, 2018 (unaudited). |
(5) | Annualized. |
(6) | April 7, 2016 (fund inception) through November 30, 2016. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
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. | ||
©2018 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92636 1807 |
![acihorizblkd26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/acihorizblkd26.jpg)
Semiannual Report | |
May 31, 2018 | |
Focused International Growth Fund | |
Investor Class (AFCNX) | |
I Class (AFCSX) | |
A Class (AFCLX) | |
C Class (AFCHX) | |
R Class (AFCWX) | |
R6 Class (AFCMX) |
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/0000872825-18-000059/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the six months ended May 31, 2018. 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.
Volatility’s Rise Restrains Returns
Global stocks continued to rally early in the reporting period, bolstered by improving growth trends throughout the world, positive corporate earnings results, generally muted inflation, and still-low interest rates. For example, U.S. stocks were notably strong, with the S&P 500 Index gaining nearly 8% for the two months ended January 31, 2018. Outside the U.S., returns were similarly robust, as central bank accommodations enhanced the positive economic and earnings backdrop.
Sentiment changed swiftly and sharply in early February. U.S. stocks plunged after the U.S. Department of Labor announced wages grew at their fastest year-over-year pace in nine years. This news, coupled with other positive economic data and rising inflation expectations, pushed interest rates higher and triggered fears that the Federal Reserve (the Fed) would ramp up its rate-hike campaign. In addition, the U.S. announced a series of tariffs that sparked fears of a global trade war. However, by the end of the reporting period, U.S. market volatility subsided somewhat. U.S. economic and inflation data and the Fed’s rate-hike strategy were generally aligned with investor expectations, while trade concerns eased. But outside the U.S., stocks continued to stumble on slowing growth in Europe, political uncertainty in Italy, and a resurgence in the U.S. dollar. For the six-month period overall, U.S. stocks advanced modestly, but non-U.S. stocks were generally flat. Meanwhile, U.S. bond returns declined as interest rates and inflation increased. Non-U.S. bonds also declined, but only fractionally.
In this environment of heightened global market volatility, improving global growth, and differing central bank strategies, investors likely will face new opportunities and challenges in the months ahead. We believe this scenario warrants a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Fund Characteristics |
MAY 31, 2018 | |
Top Ten Holdings | % of net assets |
CSL Ltd. | 4.0% |
Lonza Group AG | 3.9% |
London Stock Exchange Group plc | 3.5% |
AIA Group Ltd. | 3.3% |
Alibaba Group Holding Ltd. ADR | 3.1% |
Treasury Wine Estates Ltd. | 3.1% |
Tencent Holdings Ltd. | 3.1% |
adidas AG | 2.9% |
Diageo plc | 2.8% |
Shiseido Co. Ltd. | 2.7% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 98.3% |
Temporary Cash Investments | 3.3% |
Other Assets and Liabilities | (1.6)% |
Investments by Country | % of net assets |
Japan | 17.3% |
United Kingdom | 15.1% |
Germany | 9.3% |
Australia | 7.1% |
China | 6.2% |
Canada | 4.9% |
France | 4.8% |
Belgium | 4.5% |
Switzerland | 3.9% |
Hong Kong | 3.3% |
Brazil | 3.2% |
Austria | 2.5% |
Sweden | 2.2% |
Indonesia | 2.2% |
India | 2.2% |
Other Countries | 9.6% |
Cash and Equivalents* | 1.7% |
*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, 2017 to May 31, 2018.
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 12/1/17 | Ending Account Value 5/31/18 | Expenses Paid During Period(1) 12/1/17 - 5/31/18 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,066.40 | $6.34 | 1.23% |
I Class | $1,000 | $1,067.00 | $5.31 | 1.03% |
A Class | $1,000 | $1,064.90 | $7.62 | 1.48% |
C Class | $1,000 | $1,060.60 | $11.46 | 2.23% |
R Class | $1,000 | $1,063.40 | $8.90 | 1.73% |
R6 Class | $1,000 | $1,068.50 | $4.54 | 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. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
5
Schedule of Investments |
MAY 31, 2018 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 98.3% | |||||
Australia — 7.1% | |||||
CSL Ltd. | 3,800 | $ | 532,237 | ||
Treasury Wine Estates Ltd. | 33,270 | 415,852 | |||
948,089 | |||||
Austria — 2.5% | |||||
Erste Group Bank AG(1) | 8,010 | 331,644 | |||
Belgium — 4.5% | |||||
KBC Group NV | 3,720 | 287,923 | |||
Umicore SA | 5,700 | 321,441 | |||
609,364 | |||||
Brazil — 3.2% | |||||
Banco do Brasil SA | 9,000 | 72,992 | |||
Localiza Rent a Car SA | 43,400 | 287,162 | |||
Lojas Renner SA | 8,400 | 66,631 | |||
426,785 | |||||
Canada — 4.9% | |||||
Bombardier, Inc., B Shares(1) | 94,180 | 354,464 | |||
First Quantum Minerals Ltd. | 19,230 | 301,813 | |||
656,277 | |||||
China — 6.2% | |||||
Alibaba Group Holding Ltd. ADR(1) | 2,110 | 417,801 | |||
Tencent Holdings Ltd. | 8,100 | 408,302 | |||
826,103 | |||||
Denmark — 1.6% | |||||
DSV A/S | 2,620 | 217,675 | |||
Finland — 1.8% | |||||
Neste Oyj | 2,970 | 242,115 | |||
France — 4.8% | |||||
Kering SA | 610 | 351,973 | |||
Ubisoft Entertainment SA(1) | 2,710 | 296,055 | |||
648,028 | |||||
Germany — 9.3% | |||||
adidas AG | 1,730 | 391,656 | |||
HeidelbergCement AG | 3,470 | 307,580 | |||
Infineon Technologies AG | 10,030 | 275,627 | |||
Zalando SE(1) | 5,070 | 270,192 | |||
1,245,055 | |||||
Hong Kong — 3.3% | |||||
AIA Group Ltd. | 49,200 | 448,947 | |||
India — 2.2% | |||||
HDFC Bank Ltd. ADR | 2,710 | 288,398 |
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Shares | Value | ||||
Indonesia — 2.2% | |||||
Bank Mandiri Persero Tbk PT | 574,000 | $ | 290,223 | ||
Ireland — 1.8% | |||||
Ryanair Holdings plc ADR(1) | 2,130 | 246,888 | |||
Japan — 17.3% | |||||
Don Quijote Holdings Co. Ltd. | 5,600 | 297,203 | |||
Komatsu Ltd. | 7,000 | 228,988 | |||
MonotaRO Co. Ltd. | 5,900 | 236,646 | |||
Nintendo Co. Ltd. | 600 | 246,998 | |||
Pola Orbis Holdings, Inc. | 5,700 | 281,077 | |||
Recruit Holdings Co. Ltd. | 12,400 | 343,604 | |||
Shiseido Co. Ltd. | 4,600 | 362,847 | |||
Start Today Co. Ltd. | 9,400 | 325,290 | |||
2,322,653 | |||||
Mexico — 1.6% | |||||
Grupo Financiero Banorte SAB de CV | 39,390 | 208,675 | |||
Portugal — 1.1% | |||||
Jeronimo Martins SGPS SA | 9,450 | 148,364 | |||
Russia — 1.7% | |||||
Yandex NV, A Shares(1) | 6,810 | 228,271 | |||
Sweden — 2.2% | |||||
Lundin Petroleum AB | 9,330 | 296,018 | |||
Switzerland — 3.9% | |||||
Lonza Group AG(1) | 1,970 | 528,742 | |||
United Kingdom — 15.1% | |||||
B&M European Value Retail SA | 47,400 | 253,516 | |||
Diageo plc | 10,160 | 373,191 | |||
Ferguson plc | 3,350 | 259,631 | |||
Intertek Group plc | 4,320 | 313,971 | |||
London Stock Exchange Group plc | 7,780 | 463,135 | |||
Weir Group plc (The) | 12,420 | 361,885 | |||
2,025,329 | |||||
TOTAL COMMON STOCKS (Cost $10,856,346) | 13,183,643 | ||||
TEMPORARY CASH INVESTMENTS — 3.3% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 8/31/18 - 8/15/44, valued at $248,733), in a joint trading account at 1.50%, dated 5/31/18, due 6/1/18 (Delivery value $242,658) | 242,648 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.75%, 11/15/43, valued at $209,678), at 0.74%, dated 5/31/18, due 6/1/18 (Delivery value $202,004) | 202,000 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 448 | 448 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $445,096) | 445,096 | ||||
TOTAL INVESTMENT SECURITIES — 101.6% (Cost $11,301,442) | 13,628,739 | ||||
OTHER ASSETS AND LIABILITIES — (1.6)% | (216,085 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 13,412,654 |
7
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Industrials | 21.1 | % |
Financials | 18.0 | % |
Consumer Discretionary | 14.5 | % |
Information Technology | 14.0 | % |
Consumer Staples | 11.8 | % |
Health Care | 7.9 | % |
Materials | 7.0 | % |
Energy | 4.0 | % |
Cash and Equivalents* | 1.7 | % |
*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.
8
Statement of Assets and Liabilities |
MAY 31, 2018 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $11,301,442) | $ | 13,628,739 | |
Foreign currency holdings, at value (cost of $2,073) | 2,079 | ||
Receivable for investments sold | 123,116 | ||
Receivable for capital shares sold | 66,786 | ||
Dividends and interest receivable | 42,391 | ||
13,863,111 | |||
Liabilities | |||
Payable for investments purchased | 144,925 | ||
Payable for capital shares redeemed | 290,000 | ||
Accrued management fees | 13,925 | ||
Distribution and service fees payable | 1,607 | ||
450,457 | |||
Net Assets | $ | 13,412,654 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 11,102,485 | |
Undistributed net investment income | 66,015 | ||
Accumulated net realized loss | (82,986 | ) | |
Net unrealized appreciation | 2,327,140 | ||
$ | 13,412,654 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $9,145,573 | 669,424 | $13.66 | |||
I Class, $0.01 Par Value | $829,656 | 60,585 | $13.69 | |||
A Class, $0.01 Par Value | $1,385,985 | 101,746 | $13.62* | |||
C Class, $0.01 Par Value | $1,347,414 | 100,015 | $13.47 | |||
R Class, $0.01 Par Value | $426,573 | 31,410 | $13.58 | |||
R6 Class, $0.01 Par Value | $277,453 | 20,225 | $13.72 |
*Maximum offering price $14.45 (net asset value divided by 0.9425).
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $11,330) | $ | 146,147 | |
Interest | 2,190 | ||
148,337 | |||
Expenses: | |||
Management fees | 72,911 | ||
Distribution and service fees: | |||
A Class | 1,701 | ||
C Class | 6,640 | ||
R Class | 909 | ||
Directors' fees and expenses | 161 | ||
82,322 | |||
Net investment income (loss) | 66,015 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 56,567 | ||
Foreign currency translation transactions | (6,650 | ) | |
49,917 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | 485,575 | ||
Translation of assets and liabilities in foreign currencies | (544 | ) | |
485,031 | |||
Net realized and unrealized gain (loss) | 534,948 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 600,963 |
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2017 | ||||||
Increase (Decrease) in Net Assets | May 31, 2018 | November 30, 2017 | ||||
Operations | ||||||
Net investment income (loss) | $ | 66,015 | $ | (3,393 | ) | |
Net realized gain (loss) | 49,917 | 28,896 | ||||
Change in net unrealized appreciation (depreciation) | 485,031 | 1,840,641 | ||||
Net increase (decrease) in net assets resulting from operations | 600,963 | 1,866,144 | ||||
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) | 3,030,261 | 2,946,598 | ||||
Net increase (decrease) in net assets | 3,631,224 | 4,783,270 | ||||
Net Assets | ||||||
Beginning of period | 9,781,430 | 4,998,160 | ||||
End of period | $ | 13,412,654 | $ | 9,781,430 | ||
Undistributed net investment income | $ | 66,015 | — |
See Notes to Financial Statements.
11
Notes to Financial Statements |
MAY 31, 2018 (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, 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
12
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.
13
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. ACIM owns 51% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class.
The annual management fee for each class is as follows:
Investor Class | I Class | 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, 2018 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2018 were $6,738,603 and $3,387,619, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2018 | Year ended November 30, 2017 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 430,795 | $ | 5,871,895 | 312,694 | $ | 3,673,401 | ||||
Issued in reinvestment of distributions | — | — | 1,649 | 15,998 | ||||||
Redeemed | (220,548 | ) | (2,956,301 | ) | (67,881 | ) | (795,766 | ) | ||
210,247 | 2,915,594 | 246,462 | 2,893,633 | |||||||
I Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Issued in reinvestment of distributions | — | — | 585 | 5,676 | ||||||
A Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||
Sold | 888 | 12,493 | 201 | 2,367 | ||||||
Issued in reinvestment of distributions | — | — | 524 | 5,085 | ||||||
Redeemed | (358 | ) | (5,089 | ) | — | — | ||||
530 | 7,404 | 725 | 7,452 | |||||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 3 | 35 | 12 | 147 | ||||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 8,426 | 111,437 | 3,495 | 42,262 | ||||||
Issued in reinvestment of distributions | — | — | 54 | 529 | ||||||
Redeemed | (321 | ) | (4,209 | ) | (430 | ) | (5,285 | ) | ||
8,105 | 107,228 | 3,119 | 37,506 | |||||||
R6 Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Issued in reinvestment of distributions | — | — | 225 | 2,184 | ||||||
Net increase (decrease) | 218,885 | $ | 3,030,261 | 251,128 | $ | 2,946,598 |
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 | ||||||||
China | $ | 417,801 | $ | 408,302 | — | |||
India | 288,398 | — | — | |||||
Ireland | 246,888 | — | — | |||||
Russia | 228,271 | — | — | |||||
Other Countries | — | 11,593,983 | — | |||||
Temporary Cash Investments | 448 | 444,648 | — | |||||
$ | 1,181,806 | $ | 12,446,933 | — |
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 | $ | 11,346,209 | |
Gross tax appreciation of investments | $ | 2,469,112 | |
Gross tax depreciation of investments | (186,582 | ) | |
Net tax appreciation (depreciation) of investments | $ | 2,282,530 |
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, 2017, the fund had accumulated short-term capital losses of $(126,437), 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.
16
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 | |||||||||||||
2018(3) | $12.81 | 0.09 | 0.76 | 0.85 | — | $13.66 | 6.64% | 1.23%(4) | 1.23%(4) | 29% | $9,146 | ||
2017 | $9.75 | 0.01 | 3.13 | 3.14 | (0.08) | $12.81 | 32.40% | 1.24% | 0.14% | 76% | $5,882 | ||
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 | |||||||||||||
2018(3) | $12.83 | 0.09 | 0.77 | 0.86 | — | $13.69 | 6.70% | 1.03%(4) | 1.43%(4) | 29% | $830 | ||
2017 | $9.76 | 0.05 | 3.11 | 3.16 | (0.09) | $12.83 | 32.74% | 1.04% | 0.34% | 76% | $777 | ||
2016(5) | $10.00 | 0.05 | (0.29) | (0.24) | — | $9.76 | (2.40)% | 1.03%(4) | 0.76%(4) | 47% | $586 | ||
A Class | |||||||||||||
2018(3) | $12.79 | 0.05 | 0.78 | 0.83 | — | $13.62 | 6.49% | 1.48%(4) | 0.98%(4) | 29% | $1,386 | ||
2017 | $9.73 | (0.01) | 3.12 | 3.11 | (0.05) | $12.79 | 32.13% | 1.49% | (0.11)% | 76% | $1,295 | ||
2016(5) | $10.00 | 0.02 | (0.29) | (0.27) | — | $9.73 | (2.70)% | 1.48%(4) | 0.31%(4) | 47% | $978 | ||
C Class | |||||||||||||
2018(3) | $12.70 | —(6) | 0.77 | 0.77 | — | $13.47 | 6.06% | 2.23%(4) | 0.23%(4) | 29% | $1,347 | ||
2017 | $9.68 | (0.09) | 3.11 | 3.02 | — | $12.70 | 31.20% | 2.24% | (0.86)% | 76% | $1,270 | ||
2016(5) | $10.00 | (0.03) | (0.29) | (0.32) | — | $9.68 | (3.20)% | 2.23%(4) | (0.44)%(4) | 47% | $968 |
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 | |||||||||||||
2018(3) | $12.77 | 0.05 | 0.76 | 0.81 | — | $13.58 | 6.34% | 1.73%(4) | 0.73%(4) | 29% | $427 | ||
2017 | $9.72 | (0.04) | 3.12 | 3.08 | (0.03) | $12.77 | 31.73% | 1.74% | (0.36)% | 76% | $298 | ||
2016(5) | $10.00 | —(6) | (0.28) | (0.28) | — | $9.72 | (2.80)% | 1.73%(4) | 0.06%(4) | 47% | $196 | ||
R6 Class | |||||||||||||
2018(3) | $12.84 | 0.10 | 0.78 | 0.88 | — | $13.72 | 6.85% | 0.88%(4) | 1.58%(4) | 29% | $277 | ||
2017 | $9.77 | 0.06 | 3.12 | 3.18 | (0.11) | $12.84 | 32.90% | 0.89% | 0.49% | 76% | $260 | ||
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, 2018 (unaudited). |
(4) | Annualized. |
(5) | March 29, 2016 (fund inception) through November 30, 2016. |
(6) | Per-share amount was less than $0.005. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
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. | ||
©2018 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92637 1807 |
![acihorizblkd26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/acihorizblkd26.jpg)
Semiannual Report | |
May 31, 2018 | |
Global Growth Fund | |
Investor Class (TWGGX) | |
I Class (AGGIX) | |
Y Class (AGYGX) | |
A Class (AGGRX) | |
C Class (AGLCX) | |
R Class (AGORX) | |
R5 Class (AGFGX) | |
R6 Class (AGGDX) |
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/0000872825-18-000059/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the six months ended May 31, 2018. 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.
Volatility’s Rise Restrains Returns
Global stocks continued to rally early in the reporting period, bolstered by improving growth trends throughout the world, positive corporate earnings results, generally muted inflation, and still-low interest rates. For example, U.S. stocks were notably strong, with the S&P 500 Index gaining nearly 8% for the two months ended January 31, 2018. Outside the U.S., returns were similarly robust, as central bank accommodations enhanced the positive economic and earnings backdrop.
Sentiment changed swiftly and sharply in early February. U.S. stocks plunged after the U.S. Department of Labor announced wages grew at their fastest year-over-year pace in nine years. This news, coupled with other positive economic data and rising inflation expectations, pushed interest rates higher and triggered fears that the Federal Reserve (the Fed) would ramp up its rate-hike campaign. In addition, the U.S. announced a series of tariffs that sparked fears of a global trade war. However, by the end of the reporting period, U.S. market volatility subsided somewhat. U.S. economic and inflation data and the Fed’s rate-hike strategy were generally aligned with investor expectations, while trade concerns eased. But outside the U.S., stocks continued to stumble on slowing growth in Europe, political uncertainty in Italy, and a resurgence in the U.S. dollar. For the six-month period overall, U.S. stocks advanced modestly, but non-U.S. stocks were generally flat. Meanwhile, U.S. bond returns declined as interest rates and inflation increased. Non-U.S. bonds also declined, but only fractionally.
In this environment of heightened global market volatility, improving global growth, and differing central bank strategies, investors likely will face new opportunities and challenges in the months ahead. We believe this scenario warrants a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Fund Characteristics |
MAY 31, 2018 | |
Top Ten Holdings | % of net assets |
Alphabet, Inc.* | 3.5% |
Visa, Inc., Class A | 2.1% |
Home Depot, Inc. (The) | 2.1% |
UnitedHealth Group, Inc. | 2.0% |
Adobe Systems, Inc. | 2.0% |
Facebook, Inc., Class A | 2.0% |
AIA Group Ltd. | 1.8% |
Bank of America Corp. | 1.7% |
American Express Co. | 1.7% |
Pioneer Natural Resources Co. | 1.7% |
*Includes all classes of the issuer held by the fund. | |
Types of Investments in Portfolio | % of net assets |
Domestic Common Stocks | 62.1% |
Foreign Common Stocks | 37.2% |
Total Common Stocks | 99.3% |
Temporary Cash Investments | 1.2% |
Other Assets and Liabilities | (0.5)% |
Investments by Country | % of net assets |
United States | 62.1% |
United Kingdom | 6.6% |
France | 6.1% |
Japan | 5.4% |
China | 3.2% |
Switzerland | 2.8% |
Hong Kong | 2.4% |
Other Countries | 10.7% |
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, 2017 to May 31, 2018.
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 12/1/17 | Ending Account Value 5/31/18 | Expenses Paid During Period(1) 12/1/17 - 5/31/18 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,052.10 | $5.47 | 1.07% |
I Class | $1,000 | $1,053.20 | $4.45 | 0.87% |
Y Class | $1,000 | $1,053.90 | $3.69 | 0.72% |
A Class | $1,000 | $1,051.30 | $6.75 | 1.32% |
C Class | $1,000 | $1,046.50 | $10.56 | 2.07% |
R Class | $1,000 | $1,049.50 | $8.02 | 1.57% |
R5 Class | $1,000 | $1,053.20 | $4.45 | 0.87% |
R6 Class | $1,000 | $1,053.60 | $3.69 | 0.72% |
Hypothetical | ||||
Investor Class | $1,000 | $1,019.60 | $5.39 | 1.07% |
I Class | $1,000 | $1,020.59 | $4.38 | 0.87% |
Y Class | $1,000 | $1,021.34 | $3.63 | 0.72% |
A Class | $1,000 | $1,018.35 | $6.64 | 1.32% |
C Class | $1,000 | $1,014.61 | $10.40 | 2.07% |
R Class | $1,000 | $1,017.10 | $7.90 | 1.57% |
R5 Class | $1,000 | $1,020.59 | $4.38 | 0.87% |
R6 Class | $1,000 | $1,021.34 | $3.63 | 0.72% |
(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. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
5
Schedule of Investments |
MAY 31, 2018 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 99.3% | |||||
Austria — 0.8% | |||||
Erste Group Bank AG(1) | 103,750 | $ | 4,295,632 | ||
Brazil — 1.4% | |||||
B3 SA - Brasil Bolsa Balcao | 890,600 | 5,180,793 | |||
Lojas Renner SA | 312,500 | 2,478,829 | |||
7,659,622 | |||||
Canada — 0.2% | |||||
First Quantum Minerals Ltd. | 84,873 | 1,332,073 | |||
China — 3.2% | |||||
Alibaba Group Holding Ltd. ADR(1) | 40,230 | 7,965,942 | |||
Industrial & Commercial Bank of China Ltd., H Shares | 3,340,000 | 2,747,735 | |||
Tencent Holdings Ltd. | 138,200 | 6,966,338 | |||
17,680,015 | |||||
France — 6.1% | |||||
Danone SA | 104,940 | 8,007,127 | |||
Kering SA | 12,740 | 7,351,043 | |||
Legrand SA | 70,350 | 5,299,303 | |||
TOTAL SA | 130,235 | 7,914,933 | |||
Valeo SA | 83,680 | 5,302,481 | |||
33,874,887 | |||||
Hong Kong — 2.4% | |||||
AIA Group Ltd. | 1,068,800 | 9,752,745 | |||
Hang Seng Bank Ltd. | 148,100 | 3,700,942 | |||
13,453,687 | |||||
Hungary — 0.8% | |||||
OTP Bank Nyrt | 114,623 | 4,100,171 | |||
India — 1.1% | |||||
HDFC Bank Ltd. | 185,410 | 6,083,314 | |||
Indonesia — 0.6% | |||||
Bank Central Asia Tbk PT | 1,945,700 | 3,171,705 | |||
Ireland — 1.6% | |||||
CRH plc | 243,835 | 9,008,896 | |||
Italy — 0.7% | |||||
UniCredit SpA | 223,348 | 3,731,708 | |||
Japan — 5.4% | |||||
Don Quijote Holdings Co. Ltd. | 42,900 | 2,276,786 | |||
Keyence Corp. | 10,200 | 6,235,121 | |||
ORIX Corp. | 373,200 | 6,238,200 | |||
Pola Orbis Holdings, Inc. | 60,400 | 2,978,428 | |||
Shiseido Co. Ltd. | 40,500 | 3,194,635 | |||
Start Today Co. Ltd. | 180,600 | 6,249,731 | |||
Sysmex Corp. | 29,800 | 2,671,757 | |||
29,844,658 | |||||
Mexico — 0.5% | |||||
Grupo Financiero Banorte SAB de CV | 381,740 | 2,022,329 |
6
Shares | Value | ||||
Grupo Mexico SAB de CV, Series B | 341,320 | $ | 848,481 | ||
2,870,810 | |||||
Netherlands — 1.7% | |||||
ASML Holding NV | 20,190 | 3,939,093 | |||
Unilever NV CVA | 96,050 | 5,351,837 | |||
9,290,930 | |||||
Peru — 0.5% | |||||
Credicorp Ltd. | 13,460 | 2,980,313 | |||
Portugal — 0.4% | |||||
Jeronimo Martins SGPS SA | 129,590 | 2,034,547 | |||
Switzerland — 2.8% | |||||
Julius Baer Group Ltd.(1) | 75,490 | 4,392,687 | |||
Lonza Group AG(1) | 28,320 | 7,601,000 | |||
Swatch Group AG (The) | 7,570 | 3,673,201 | |||
15,666,888 | |||||
Turkey — 0.4% | |||||
Turkiye Garanti Bankasi AS | 1,141,020 | 2,244,008 | |||
United Kingdom — 6.6% | |||||
Ashtead Group plc | 196,838 | 6,074,047 | |||
AstraZeneca plc | 81,710 | 5,964,210 | |||
B&M European Value Retail SA | 642,550 | 3,436,645 | |||
Diageo plc | 162,410 | 5,965,545 | |||
Intertek Group plc | 57,380 | 4,170,288 | |||
London Stock Exchange Group plc | 113,080 | 6,731,527 | |||
RPC Group plc | 408,570 | 4,295,892 | |||
36,638,154 | |||||
United States — 62.1% | |||||
Abbott Laboratories | 94,320 | 5,803,510 | |||
ABIOMED, Inc.(1) | 12,478 | 4,755,865 | |||
Adobe Systems, Inc.(1) | 45,057 | 11,231,809 | |||
Agilent Technologies, Inc. | 67,640 | 4,188,269 | |||
Alphabet, Inc., Class A(1) | 13,845 | 15,229,500 | |||
Alphabet, Inc., Class C(1) | 3,954 | 4,290,050 | |||
American Express Co. | 93,240 | 9,165,492 | |||
American Tower Corp. | 39,620 | 5,482,219 | |||
AMETEK, Inc. | 89,220 | 6,515,737 | |||
Bank of America Corp. | 329,500 | 9,568,680 | |||
Becton Dickinson and Co. | 35,760 | 7,924,058 | |||
Bio-Rad Laboratories, Inc., Class A(1) | 24,274 | 6,969,794 | |||
Burlington Stores, Inc.(1) | 47,270 | 6,913,238 | |||
Catalent, Inc.(1) | 93,890 | 3,686,121 | |||
Cheniere Energy, Inc.(1) | 45,160 | 3,008,559 | |||
Cintas Corp. | 19,810 | 3,610,373 | |||
Danaher Corp. | 86,020 | 8,540,066 | |||
Dollar Tree, Inc.(1) | 39,340 | 3,249,091 | |||
EOG Resources, Inc. | 63,670 | 7,500,963 | |||
Equinix, Inc. | 22,306 | 8,852,136 | |||
Facebook, Inc., Class A(1) | 58,381 | 11,196,308 | |||
FedEx Corp. | 16,440 | 4,095,533 | |||
Fortune Brands Home & Security, Inc. | 99,973 | 5,615,483 | |||
Home Depot, Inc. (The) | 61,364 | 11,447,454 |
7
Shares | Value | ||||
IHS Markit Ltd.(1) | 144,980 | $ | 7,144,614 | ||
Intercontinental Exchange, Inc. | 109,150 | 7,737,644 | |||
Keysight Technologies, Inc.(1) | 86,633 | 5,088,822 | |||
Liberty Media Corp-Liberty Formula One, Class C(1) | 100,127 | 3,162,011 | |||
MarketAxess Holdings, Inc. | 22,183 | 4,739,398 | |||
Martin Marietta Materials, Inc. | 26,520 | 5,910,512 | |||
MasterCard, Inc., Class A | 41,110 | 7,815,833 | |||
Medidata Solutions, Inc.(1) | 57,010 | 4,398,892 | |||
Monster Beverage Corp.(1) | 97,550 | 4,990,658 | |||
MSCI, Inc. | 29,030 | 4,719,407 | |||
PayPal Holdings, Inc.(1) | 87,200 | 7,156,504 | |||
Pioneer Natural Resources Co. | 47,348 | 9,142,899 | |||
Roper Technologies, Inc. | 26,560 | 7,324,982 | |||
ServiceNow, Inc.(1) | 30,440 | 5,406,448 | |||
Stanley Black & Decker, Inc. | 40,510 | 5,640,612 | |||
Sysco Corp. | 80,500 | 5,234,915 | |||
Tapestry, Inc. | 106,590 | 4,660,115 | |||
Target Corp. | 42,670 | 3,110,216 | |||
Teleflex, Inc. | 25,108 | 6,707,853 | |||
Texas Capital Bancshares, Inc.(1) | 50,000 | 4,817,500 | |||
Texas Instruments, Inc. | 60,240 | 6,741,458 | |||
UnitedHealth Group, Inc. | 46,636 | 11,263,060 | |||
VeriSign, Inc.(1) | 24,190 | 3,155,344 | |||
Visa, Inc., Class A | 89,342 | 11,678,786 | |||
Webster Financial Corp. | 82,690 | 5,300,429 | |||
Worldpay, Inc., Class A(1) | 90,618 | 7,201,413 | |||
Zions Bancorporation | 147,659 | 8,093,190 | |||
Zoetis, Inc. | 72,958 | 6,106,585 | |||
343,290,408 | |||||
TOTAL COMMON STOCKS (Cost $376,087,969) | 549,252,426 | ||||
TEMPORARY CASH INVESTMENTS — 1.2% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 8/31/18 - 8/15/44, valued at $3,609,196), in a joint trading account at 1.50%, dated 5/31/18, due 6/1/18 (Delivery value $3,521,047) | 3,520,900 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.75%, 11/15/43, valued at $2,997,835), at 0.74%, dated 5/31/18, due 6/1/18 (Delivery value $2,935,060) | 2,935,000 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 2,589 | 2,589 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $6,458,489) | 6,458,489 | ||||
TOTAL INVESTMENT SECURITIES — 100.5% (Cost $382,546,458) | 555,710,915 | ||||
OTHER ASSETS AND LIABILITIES — (0.5)% | (2,737,872 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 552,973,043 |
8
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Financials | 22.2 | % |
Information Technology | 21.9 | % |
Health Care | 15.7 | % |
Consumer Discretionary | 11.4 | % |
Industrials | 9.9 | % |
Consumer Staples | 6.9 | % |
Energy | 4.9 | % |
Materials | 3.8 | % |
Real Estate | 2.6 | % |
Cash and Equivalents* | 0.7 | % |
*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, 2018 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $382,546,458) | $ | 555,710,915 | |
Foreign currency holdings, at value (cost of $191,336) | 191,795 | ||
Receivable for investments sold | 131,805 | ||
Receivable for capital shares sold | 89,095 | ||
Dividends and interest receivable | 1,156,313 | ||
Other assets | 1,292 | ||
557,281,215 | |||
Liabilities | |||
Payable for investments purchased | 1,687,209 | ||
Payable for capital shares redeemed | 2,100,194 | ||
Accrued management fees | 485,537 | ||
Distribution and service fees payable | 14,289 | ||
Accrued foreign taxes | 20,943 | ||
4,308,172 | |||
Net Assets | $ | 552,973,043 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 359,482,516 | |
Distributions in excess of net investment income | (2,288,899 | ) | |
Undistributed net realized gain | 22,635,965 | ||
Net unrealized appreciation | 173,143,461 | ||
$ | 552,973,043 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $440,279,317 | 34,398,631 | $12.80 | |||
I Class, $0.01 Par Value | $23,725,150 | 1,819,181 | $13.04 | |||
Y Class, $0.01 Par Value | $6,165 | 470 | $13.12 | |||
A Class, $0.01 Par Value | $28,457,731 | 2,287,915 | $12.44* | |||
C Class, $0.01 Par Value | $5,809,666 | 539,269 | $10.77 | |||
R Class, $0.01 Par Value | $7,401,670 | 604,653 | $12.24 | |||
R5 Class, $0.01 Par Value | $6,153 | 472 | $13.04 | |||
R6 Class, $0.01 Par Value | $47,287,191 | 3,609,378 | $13.10 |
*Maximum offering price $13.20 (net asset value divided by 0.9425).
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $201,360) | $ | 4,336,397 | |
Interest | 25,921 | ||
4,362,318 | |||
Expenses: | |||
Management fees | 2,880,340 | ||
Distribution and service fees: | |||
A Class | 36,201 | ||
C Class | 30,479 | ||
R Class | 19,310 | ||
Directors' fees and expenses | 7,599 | ||
Other expenses | 5,541 | ||
2,979,470 | |||
Net investment income (loss) | 1,382,848 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 28,977,705 | ||
Foreign currency translation transactions | (17,288 | ) | |
28,960,417 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $(20,943)) | (2,281,607 | ) | |
Translation of assets and liabilities in foreign currencies | (5,845 | ) | |
(2,287,452 | ) | ||
Net realized and unrealized gain (loss) | 26,672,965 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 28,055,813 |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2017 | ||||||
Increase (Decrease) in Net Assets | May 31, 2018 | November 30, 2017 | ||||
Operations | ||||||
Net investment income (loss) | $ | 1,382,848 | $ | 711,727 | ||
Net realized gain (loss) | 28,960,417 | 59,921,989 | ||||
Change in net unrealized appreciation (depreciation) | (2,287,452 | ) | 66,377,675 | |||
Net increase (decrease) in net assets resulting from operations | 28,055,813 | 127,011,391 | ||||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (994,418 | ) | (1,172,124 | ) | ||
I Class | (156,326 | ) | (138,636 | ) | ||
Y Class | (27 | ) | — | |||
A Class | — | (88,871 | ) | |||
C Class | — | (5,519 | ) | |||
R Class | — | (15,751 | ) | |||
R5 Class | (21 | ) | — | |||
R6 Class | (230,863 | ) | (66,880 | ) | ||
From net realized gains: | ||||||
Investor Class | (47,037,567 | ) | (4,516,594 | ) | ||
I Class | (3,436,073 | ) | (453,950 | ) | ||
Y Class | (615 | ) | — | |||
A Class | (3,350,308 | ) | (430,288 | ) | ||
C Class | (752,010 | ) | (85,683 | ) | ||
R Class | (892,252 | ) | (92,080 | ) | ||
R5 Class | (618 | ) | — | |||
R6 Class | (3,939,904 | ) | (199,745 | ) | ||
Decrease in net assets from distributions | (60,791,002 | ) | (7,266,121 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 33,603,751 | (58,600,370 | ) | |||
Redemption Fees | ||||||
Increase in net assets from redemption fees | — | 7,665 | ||||
Net increase (decrease) in net assets | 868,562 | 61,152,565 | ||||
Net Assets | ||||||
Beginning of period | 552,104,481 | 490,951,916 | ||||
End of period | $ | 552,973,043 | $ | 552,104,481 | ||
Distributions in excess of net investment income | $ | (2,288,899 | ) | $ | (2,290,092 | ) |
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2018 (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, 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 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. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
14
Redemption Fees — Prior to October 9, 2017, the fund may have imposed a 2.00% redemption fee on shares held less than 60 days. The fee was not applicable to all classes. The redemption fee was retained by the fund to help 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 non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The 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, 2018 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, 2018 are detailed in the Statement of Operations.
15
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $634,578 and $171,066, respectively. The effect of interfund transactions on the Statement of Operations was $5,954 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, 2018 were $100,521,183 and $125,916,451, respectively.
16
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2018 | Year ended November 30, 2017(1) | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 340,000,000 | 340,000,000 | ||||||||
Sold | 1,375,821 | $ | 17,411,872 | 3,498,175 | $ | 43,157,809 | ||||
Issued in reinvestment of distributions | 3,851,797 | 46,801,407 | 489,710 | 5,515,330 | ||||||
Redeemed | (2,858,431 | ) | (36,247,334 | ) | (7,677,343 | ) | (92,524,581 | ) | ||
2,369,187 | 27,965,945 | (3,689,458 | ) | (43,851,442 | ) | |||||
I Class/Shares Authorized | 55,000,000 | 55,000,000 | ||||||||
Sold | 527,468 | 6,941,194 | 1,918,465 | 23,107,508 | ||||||
Issued in reinvestment of distributions | 269,213 | 3,338,740 | 50,829 | 582,556 | ||||||
Redeemed | (1,313,619 | ) | (16,772,111 | ) | (2,996,276 | ) | (37,375,484 | ) | ||
(516,938 | ) | (6,492,177 | ) | (1,026,982 | ) | (13,685,420 | ) | |||
Y Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | — | — | 418 | 5,000 | ||||||
Issued in reinvestment of distributions | 52 | 642 | — | — | ||||||
52 | 642 | 418 | 5,000 | |||||||
A Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||
Sold | 193,275 | 2,382,559 | 410,718 | 4,855,728 | ||||||
Issued in reinvestment of distributions | 273,488 | 3,221,690 | 46,105 | 505,916 | ||||||
Redeemed | (478,744 | ) | (5,852,770 | ) | (1,595,257 | ) | (18,764,878 | ) | ||
(11,981 | ) | (248,521 | ) | (1,138,434 | ) | (13,403,234 | ) | |||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 65,802 | 699,483 | 83,626 | 894,854 | ||||||
Issued in reinvestment of distributions | 62,611 | 641,132 | 7,178 | 69,813 | ||||||
Redeemed | (97,057 | ) | (1,034,749 | ) | (312,267 | ) | (3,208,186 | ) | ||
31,356 | 305,866 | (221,463 | ) | (2,243,519 | ) | |||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 47,836 | 580,893 | 131,343 | 1,517,519 | ||||||
Issued in reinvestment of distributions | 76,654 | 889,957 | 9,907 | 107,628 | ||||||
Redeemed | (122,948 | ) | (1,487,654 | ) | (207,598 | ) | (2,484,860 | ) | ||
1,542 | (16,804 | ) | (66,348 | ) | (859,713 | ) | ||||
R5 Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | — | — | 420 | 5,000 | ||||||
Issued in reinvestment of distributions | 52 | 639 | — | — | ||||||
52 | 639 | 420 | 5,000 | |||||||
R6 Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 795,819 | 10,326,647 | 1,567,880 | 20,550,216 | ||||||
Issued in reinvestment of distributions | 334,272 | 4,170,767 | 23,164 | 266,625 | ||||||
Redeemed | (185,759 | ) | (2,409,253 | ) | (420,129 | ) | (5,383,883 | ) | ||
944,332 | 12,088,161 | 1,170,915 | 15,432,958 | |||||||
Net increase (decrease) | 2,817,602 | $ | 33,603,751 | (4,970,932 | ) | $ | (58,600,370 | ) |
(1) | April 10, 2017 (commencement of sale) through November 30, 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 | ||||||||
Austria | — | $ | 4,295,632 | — | ||||
Brazil | — | 7,659,622 | — | |||||
Canada | — | 1,332,073 | — | |||||
China | $ | 7,965,942 | 9,714,073 | — | ||||
France | — | 33,874,887 | — | |||||
Hong Kong | — | 13,453,687 | — | |||||
Hungary | — | 4,100,171 | — | |||||
India | — | 6,083,314 | — | |||||
Indonesia | — | 3,171,705 | — | |||||
Ireland | — | 9,008,896 | — | |||||
Italy | — | 3,731,708 | — | |||||
Japan | — | 29,844,658 | — | |||||
Mexico | — | 2,870,810 | — | |||||
Netherlands | — | 9,290,930 | — | |||||
Portugal | — | 2,034,547 | — | |||||
Switzerland | — | 15,666,888 | — | |||||
Turkey | — | 2,244,008 | — | |||||
United Kingdom | — | 36,638,154 | — | |||||
Other Countries | 346,270,721 | — | — | |||||
Temporary Cash Investments | 2,589 | 6,455,900 | — | |||||
$ | 354,239,252 | $ | 201,471,663 | — |
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 | $ | 383,445,531 | |
Gross tax appreciation of investments | $ | 178,790,549 | |
Gross tax depreciation of investments | (6,525,165 | ) | |
Net tax appreciation (depreciation) of investments | $ | 172,265,384 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
19
Financial Highlights |
For a Share Outstanding Throughout the Years Ended 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 | |||||||||||||||
2018(3) | $13.67 | 0.03 | 0.60 | 0.63 | (0.03) | (1.47) | (1.50) | $12.80 | 5.21% | 1.07%(4) | 0.49%(4) | 18% | $440,279 | ||
2017 | $10.84 | 0.02 | 2.98 | 3.00 | (0.04) | (0.13) | (0.17) | $13.67 | 27.99% | 1.08% | 0.14% | 54% | $437,822 | ||
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 | ||
I Class | |||||||||||||||
2018(3) | $13.91 | 0.04 | 0.61 | 0.65 | (0.05) | (1.47) | (1.52) | $13.04 | 5.32% | 0.87%(4) | 0.69%(4) | 18% | $23,725 | ||
2017 | $11.01 | 0.05 | 3.02 | 3.07 | (0.04) | (0.13) | (0.17) | $13.91 | 28.25% | 0.88% | 0.34% | 54% | $32,498 | ||
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 | ||
Y Class | |||||||||||||||
2018(3) | $13.98 | 0.06 | 0.61 | 0.67 | (0.06) | (1.47) | (1.53) | $13.12 | 5.39% | 0.72%(4) | 0.84%(4) | 18% | $6 | ||
2017(6) | $11.95 | 0.04 | 1.99 | 2.03 | — | — | — | $13.98 | 16.99% | 0.73%(4) | 0.49%(4) | 54%(7) | $6 |
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 | |||||||||||||||
2018(3) | $13.31 | 0.01 | 0.59 | 0.60 | — | (1.47) | (1.47) | $12.44 | 5.13% | 1.32%(4) | 0.24%(4) | 18% | $28,458 | ||
2017 | $10.58 | (0.01) | 2.90 | 2.89 | (0.03) | (0.13) | (0.16) | $13.31 | 27.65% | 1.33% | (0.11)% | 54% | $30,622 | ||
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 | ||
C Class | |||||||||||||||
2018(3) | $11.77 | (0.03) | 0.50 | 0.47 | — | (1.47) | (1.47) | $10.77 | 4.65% | 2.07%(4) | (0.51)%(4) | 18% | $5,810 | ||
2017 | $9.42 | (0.09) | 2.58 | 2.49 | (0.01) | (0.13) | (0.14) | $11.77 | 26.77% | 2.08% | (0.86)% | 54% | $5,977 | ||
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 | ||
R Class | |||||||||||||||
2018(3) | $13.14 | —(5) | 0.57 | 0.57 | — | (1.47) | (1.47) | $12.24 | 4.95% | 1.57%(4) | (0.01)%(4) | 18% | $7,402 | ||
2017 | $10.47 | (0.04) | 2.86 | 2.82 | (0.02) | (0.13) | (0.15) | $13.14 | 27.29% | 1.58% | (0.36)% | 54% | $7,925 | ||
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 |
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 | |||||||||||||||
2018(3) | $13.90 | 0.05 | 0.60 | 0.65 | (0.04) | (1.47) | (1.51) | $13.04 | 5.32% | 0.87%(4) | 0.69%(4) | 18% | $6 | ||
2017(6) | $11.90 | 0.03 | 1.97 | 2.00 | — | — | — | $13.90 | 16.81% | 0.88%(4) | 0.34%(4) | 54%(7) | $6 | ||
R6 Class | |||||||||||||||
2018(3) | $13.98 | 0.06 | 0.60 | 0.66 | (0.07) | (1.47) | (1.54) | $13.10 | 5.36% | 0.72%(4) | 0.84%(4) | 18% | $47,287 | ||
2017 | $11.05 | 0.05 | 3.05 | 3.10 | (0.04) | (0.13) | (0.17) | $13.98 | 28.46% | 0.73% | 0.49% | 54% | $37,248 | ||
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(8) | $11.22 | —(5) | 1.31 | 1.31 | — | — | — | $12.53 | 11.68% | 0.74%(4) | 0.00%(4)(9) | 64%(10) | $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, 2018 (unaudited). |
(4) | Annualized. |
(5) | Per-share amount was less than $0.005. |
(6) | April 10, 2017 (commencement of sale) through November 30, 2017. |
(7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2017. |
(8) | July 26, 2013 (commencement of sale) through November 30, 2013. |
(9) | Ratio was less than 0.005%. |
(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 retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
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. | ||
©2018 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92631 1807 |
![acihorizblkd26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/acihorizblkd26.jpg)
Semiannual Report | |
May 31, 2018 | |
Global Small Cap Fund | |
Investor Class (AGCVX) | |
I Class (AGCSX) | |
A Class (AGCLX) | |
C Class (AGCHX) | |
R Class (AGCWX) | |
R6 Class (AGCTX) |
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/0000872825-18-000059/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the six months ended May 31, 2018. 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.
Volatility’s Rise Restrains Returns
Global stocks continued to rally early in the reporting period, bolstered by improving growth trends throughout the world, positive corporate earnings results, generally muted inflation, and still-low interest rates. For example, U.S. stocks were notably strong, with the S&P 500 Index gaining nearly 8% for the two months ended January 31, 2018. Outside the U.S., returns were similarly robust, as central bank accommodations enhanced the positive economic and earnings backdrop.
Sentiment changed swiftly and sharply in early February. U.S. stocks plunged after the U.S. Department of Labor announced wages grew at their fastest year-over-year pace in nine years. This news, coupled with other positive economic data and rising inflation expectations, pushed interest rates higher and triggered fears that the Federal Reserve (the Fed) would ramp up its rate-hike campaign. In addition, the U.S. announced a series of tariffs that sparked fears of a global trade war. However, by the end of the reporting period, U.S. market volatility subsided somewhat. U.S. economic and inflation data and the Fed’s rate-hike strategy were generally aligned with investor expectations, while trade concerns eased. But outside the U.S., stocks continued to stumble on slowing growth in Europe, political uncertainty in Italy, and a resurgence in the U.S. dollar. For the six-month period overall, U.S. stocks advanced modestly, but non-U.S. stocks were generally flat. Meanwhile, U.S. bond returns declined as interest rates and inflation increased. Non-U.S. bonds also declined, but only fractionally.
In this environment of heightened global market volatility, improving global growth, and differing central bank strategies, investors likely will face new opportunities and challenges in the months ahead. We believe this scenario warrants a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2018 | |
Top Ten Holdings | % of net assets |
Hamilton Lane, Inc., Class A | 1.5% |
Kinsale Capital Group, Inc. | 1.4% |
Melco International Development Ltd. | 1.3% |
Cavco Industries, Inc. | 1.3% |
Bottomline Technologies de, Inc. | 1.3% |
WNS Holdings Ltd. ADR | 1.2% |
Western Alliance Bancorp | 1.1% |
SVB Financial Group | 1.1% |
Cafe24 Corp. | 1.1% |
Malibu Boats, Inc., Class A | 1.1% |
Types of Investments in Portfolio | % of net assets |
Foreign Common Stocks | 50.1% |
Domestic Common Stocks | 48.7% |
Total Common Stocks | 98.8% |
Temporary Cash Investments | 3.2% |
Other Assets and Liabilities | (2.0)% |
Investments by Country | % of net assets |
United States | 48.7% |
Japan | 8.2% |
United Kingdom | 6.8% |
China | 5.1% |
Canada | 3.5% |
Germany | 3.1% |
South Korea | 2.8% |
India | 2.5% |
Switzerland | 2.3% |
Australia | 2.0% |
Other Countries | 13.8% |
Cash and Equivalents* | 1.2% |
*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, 2017 to May 31, 2018.
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 12/1/17 | Ending Account Value 5/31/18 | Expenses Paid During Period(1) 12/1/17 - 5/31/18 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,111.60 | $7.90 | 1.50% |
I Class | $1,000 | $1,112.60 | $6.85 | 1.30% |
A Class | $1,000 | $1,109.90 | $9.21 | 1.75% |
C Class | $1,000 | $1,105.70 | $13.12 | 2.50% |
R Class | $1,000 | $1,108.30 | $10.51 | 2.00% |
R6 Class | $1,000 | $1,113.00 | $6.06 | 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. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
5
Schedule of Investments |
MAY 31, 2018 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 98.8% | |||||
Australia — 2.0% | |||||
Kogan.com Ltd. | 17,526 | $ | 119,814 | ||
NEXTDC Ltd.(1) | 37,446 | 210,939 | |||
Northern Star Resources Ltd. | 24,341 | 114,992 | |||
445,745 | |||||
Austria — 0.7% | |||||
Schoeller-Bleckmann Oilfield Equipment AG | 1,276 | 160,030 | |||
Belgium — 0.5% | |||||
Galapagos NV(1) | 1,030 | 104,346 | |||
Canada — 3.5% | |||||
Arizona Mining, Inc.(1) | 42,662 | 135,889 | |||
Colliers International Group, Inc. | 1,359 | 98,042 | |||
FirstService Corp. | 1,241 | 87,328 | |||
Interfor Corp.(1) | 10,873 | 216,269 | |||
Parex Resources, Inc.(1) | 13,039 | 235,418 | |||
772,946 | |||||
China — 5.1% | |||||
Baozun, Inc. ADR(1) | 3,477 | 213,175 | |||
Chinasoft International Ltd. | 210,000 | 176,200 | |||
GDS Holdings Ltd. ADR(1) | 5,913 | 223,571 | |||
GreenTree Hospitality Group Ltd. ADR(1) | 9,459 | 177,072 | |||
Li Ning Co. Ltd.(1) | 122,000 | 145,747 | |||
Wisdom Education International Holdings Co. Ltd. | 218,000 | 189,608 | |||
1,125,373 | |||||
Denmark — 0.3% | |||||
Royal Unibrew A/S | 772 | 55,461 | |||
Finland — 0.5% | |||||
Outotec Oyj(1) | 12,815 | 119,809 | |||
France — 1.4% | |||||
Solutions 30 SE(1) | 3,532 | 166,264 | |||
Trigano SA | 706 | 141,357 | |||
307,621 | |||||
Germany — 3.1% | |||||
AIXTRON SE(1) | 6,899 | 103,507 | |||
MorphoSys AG(1) | 1,495 | 155,793 | |||
Rheinmetall AG | 1,266 | 161,586 | |||
Scout24 AG | 2,928 | 150,074 | |||
Stabilus SA | 1,091 | 110,139 | |||
681,099 | |||||
Hong Kong — 1.3% | |||||
Melco International Development Ltd. | 81,000 | 292,192 |
6
Shares | Value | ||||
India — 2.5% | |||||
Dewan Housing Finance Corp. Ltd. | 12,206 | $ | 110,190 | ||
Future Retail Ltd.(1) | 12,141 | 105,679 | |||
Satin Creditcare Network Ltd.(1) | 14,752 | 86,437 | |||
WNS Holdings Ltd. ADR(1) | 4,937 | 252,478 | |||
554,784 | |||||
Indonesia — 0.7% | |||||
Bank Tabungan Negara Persero Tbk PT | 653,200 | 143,096 | |||
Italy — 1.3% | |||||
Gima TT SpA | 3,672 | 67,832 | |||
IMA Industria Macchine Automatiche SpA | 522 | 50,740 | |||
Moncler SpA | 3,491 | 161,067 | |||
279,639 | |||||
Japan — 8.2% | |||||
Denka Co. Ltd. | 2,600 | 94,991 | |||
Fancl Corp. | 5,100 | 234,472 | |||
Ichikoh Industries Ltd. | 11,600 | 153,253 | |||
Outsourcing, Inc. | 9,700 | 184,363 | |||
Pigeon Corp. | 3,500 | 171,237 | |||
Rohto Pharmaceutical Co. Ltd. | 6,300 | 201,717 | |||
Seed Co. Ltd. | 2,000 | 135,146 | |||
Seino Holdings Co. Ltd. | 7,000 | 131,404 | |||
SHO-BOND Holdings Co. Ltd. | 1,900 | 127,188 | |||
Systena Corp. | 10,400 | 116,762 | |||
Tateru, Inc. | 8,000 | 156,043 | |||
Trust Tech, Inc. | 3,000 | 89,498 | |||
1,796,074 | |||||
Netherlands — 1.7% | |||||
ASR Nederland NV | 3,891 | 164,996 | |||
InterXion Holding NV(1) | 3,359 | 214,506 | |||
379,502 | |||||
New Zealand — 0.8% | |||||
a2 Milk Co. Ltd.(1) | 22,263 | 166,204 | |||
Norway — 0.8% | |||||
Petroleum Geo-Services ASA(1) | 35,117 | 168,339 | |||
South Korea — 2.8% | |||||
Cafe24 Corp.(1) | 1,562 | 248,986 | |||
Dentium Co. Ltd. | 1,314 | 106,817 | |||
Finetex EnE, Inc.(1) | 12,629 | 29,360 | |||
Hotel Shilla Co. Ltd. | 1,933 | 221,376 | |||
606,539 | |||||
Spain — 1.8% | |||||
Ence Energia y Celulosa SA | 23,575 | 185,191 | |||
Masmovil Ibercom SA(1) | 812 | 111,743 | |||
Talgo SA | 18,228 | 108,048 | |||
404,982 |
7
Shares | Value | ||||
Sweden — 0.8% | |||||
Elekta AB, B Shares | 9,696 | $ | 118,215 | ||
SSAB AB, A Shares | 9,797 | 52,715 | |||
170,930 | |||||
Switzerland — 2.3% | |||||
Georg Fischer AG | 135 | 174,258 | |||
Idorsia Ltd.(1) | 4,179 | 101,316 | |||
Medartis Holding AG(1) | 1,717 | 111,980 | |||
Tecan Group AG | 513 | 121,549 | |||
509,103 | |||||
Taiwan — 1.2% | |||||
Eclat Textile Co. Ltd. | 12,000 | 146,182 | |||
TCI Co. Ltd. | 9,000 | 117,352 | |||
263,534 | |||||
United Kingdom — 6.8% | |||||
Abcam plc | 6,755 | 108,955 | |||
Aveva Group plc | 5,118 | 161,528 | |||
Beazley plc | 21,496 | 170,896 | |||
Burford Capital Ltd. | 9,801 | 207,442 | |||
Dechra Pharmaceuticals plc | 3,635 | 134,597 | |||
Fevertree Drinks plc | 5,489 | 219,219 | |||
KAZ Minerals plc(1) | 9,820 | 132,285 | |||
Rentokil Initial plc | 45,086 | 205,395 | |||
SSP Group plc | 17,054 | 146,231 | |||
1,486,548 | |||||
United States — 48.7% | |||||
2U, Inc.(1) | 2,184 | 207,043 | |||
AAR Corp. | 3,416 | 152,661 | |||
ABIOMED, Inc.(1) | 379 | 144,452 | |||
Adamas Pharmaceuticals, Inc.(1) | 4,717 | 135,095 | |||
Amedisys, Inc.(1) | 1,794 | 136,972 | |||
American Eagle Outfitters, Inc. | 8,147 | 180,863 | |||
At Home Group, Inc.(1) | 4,561 | 157,856 | |||
Boot Barn Holdings, Inc.(1) | 8,245 | 195,242 | |||
Bottomline Technologies de, Inc.(1) | 5,876 | 279,463 | |||
Burlington Stores, Inc.(1) | 1,346 | 196,853 | |||
Callon Petroleum Co.(1) | 14,752 | 174,664 | |||
Cavco Industries, Inc.(1) | 1,356 | 281,506 | |||
Central Garden & Pet Co.(1) | 4,442 | 181,367 | |||
Chart Industries, Inc.(1) | 3,381 | 217,838 | |||
Chegg, Inc.(1) | 7,124 | 199,258 | |||
Churchill Downs, Inc. | 351 | 105,089 | |||
Copart, Inc.(1) | 2,056 | 112,730 | |||
Dycom Industries, Inc.(1) | 1,167 | 108,718 | |||
Energen Corp.(1) | 2,150 | 145,856 | |||
Etsy, Inc.(1) | 3,875 | 125,318 | |||
Fair Isaac Corp.(1) | 1,121 | 206,298 |
8
Shares | Value | ||||
Five9, Inc.(1) | 4,917 | $ | 171,554 | ||
Flexion Therapeutics, Inc.(1) | 5,068 | 137,394 | |||
Gardner Denver Holdings, Inc.(1) | 3,458 | 113,664 | |||
GreenSky, Inc., Class A(1) | 7,279 | 194,859 | |||
GrubHub, Inc.(1) | 970 | 103,994 | |||
Hamilton Lane, Inc., Class A | 6,905 | 322,878 | |||
HealthEquity, Inc.(1) | 2,105 | 156,423 | |||
HEICO Corp. | 2,326 | 213,666 | |||
Hilton Grand Vacations, Inc.(1) | 2,928 | 116,417 | |||
Houlihan Lokey, Inc. | 4,291 | 209,787 | |||
Insulet Corp.(1) | 2,381 | 223,314 | |||
Kadant, Inc. | 1,194 | 116,475 | |||
Kinsale Capital Group, Inc. | 5,940 | 314,582 | |||
Kratos Defense & Security Solutions, Inc.(1) | 11,235 | 125,720 | |||
LendingTree, Inc.(1) | 543 | 140,583 | |||
Malibu Boats, Inc., Class A(1) | 5,655 | 242,486 | |||
Masimo Corp.(1) | 1,617 | 160,164 | |||
MGP Ingredients, Inc. | 2,248 | 199,060 | |||
Mimecast Ltd.(1) | 3,578 | 159,471 | |||
Monolithic Power Systems, Inc. | 1,224 | 161,335 | |||
MRC Global, Inc.(1) | 7,624 | 157,436 | |||
National Instruments Corp. | 2,497 | 103,925 | |||
NMI Holdings, Inc., Class A(1) | 6,166 | 102,664 | |||
Nutrisystem, Inc. | 2,864 | 106,827 | |||
Ollie's Bargain Outlet Holdings, Inc.(1) | 2,560 | 180,992 | |||
Optinose, Inc.(1) | 6,582 | 151,847 | |||
PlayAGS, Inc.(1) | 8,689 | 220,006 | |||
RH(1) | 2,015 | 196,926 | |||
Semtech Corp.(1) | 3,188 | 154,299 | |||
SiteOne Landscape Supply, Inc.(1) | 1,559 | 117,938 | |||
Summit Materials, Inc., Class A(1) | 1,326 | 37,685 | |||
SVB Financial Group(1) | 803 | 250,640 | |||
Tailored Brands, Inc. | 4,745 | 155,683 | |||
Teladoc, Inc.(1) | 4,250 | 216,325 | |||
Terex Corp. | 3,274 | 129,585 | |||
Trupanion, Inc.(1) | 7,129 | 226,488 | |||
Vocera Communications, Inc.(1) | 5,810 | 156,986 | |||
Western Alliance Bancorp(1) | 4,187 | 252,309 | |||
Wintrust Financial Corp. | 2,413 | 222,261 | |||
XPO Logistics, Inc.(1) | 1,971 | 207,448 | |||
Zendesk, Inc.(1) | 1,807 | 100,993 | |||
10,678,231 | |||||
TOTAL COMMON STOCKS (Cost $17,906,739) | 21,672,127 | ||||
TEMPORARY CASH INVESTMENTS — 3.2% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 8/31/18 - 8/15/44, valued at $397,131), in a joint trading account at 1.50%, dated 5/31/18, due 6/1/18 (Delivery value $387,432) | 387,416 |
9
Shares | Value | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.75%, 11/15/43, valued at $334,352), at 0.74%, dated 5/31/18, due 6/1/18 (Delivery value $323,007) | $ | 323,000 | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 232 | 232 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $710,648) | 710,648 | ||||
TOTAL INVESTMENT SECURITIES — 102.0% (Cost $18,617,387) | 22,382,775 | ||||
OTHER ASSETS AND LIABILITIES — (2.0)% | (435,030 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 21,947,745 |
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Consumer Discretionary | 20.1 | % |
Information Technology | 19.4 | % |
Industrials | 15.1 | % |
Health Care | 13.6 | % |
Financials | 13.4 | % |
Consumer Staples | 6.7 | % |
Materials | 4.4 | % |
Energy | 4.1 | % |
Real Estate | 1.5 | % |
Telecommunication Services | 0.5 | % |
Cash and Equivalents* | 1.2 | % |
*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.
10
Statement of Assets and Liabilities |
MAY 31, 2018 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $18,617,387) | $ | 22,382,775 | |
Foreign currency holdings, at value (cost of $29,597) | 29,593 | ||
Receivable for investments sold | 164,604 | ||
Receivable for capital shares sold | 156,662 | ||
Dividends and interest receivable | 9,845 | ||
22,743,479 | |||
Liabilities | |||
Payable for investments purchased | 767,999 | ||
Accrued management fees | 25,820 | ||
Distribution and service fees payable | 1,915 | ||
795,734 | |||
Net Assets | $ | 21,947,745 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 17,563,503 | |
Accumulated net investment loss | (84,392 | ) | |
Undistributed net realized gain | 703,407 | ||
Net unrealized appreciation | 3,765,227 | ||
$ | 21,947,745 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $15,794,461 | 1,011,989 | $15.61 | |||
I Class, $0.01 Par Value | $1,868,614 | 119,166 | $15.68 | |||
A Class, $0.01 Par Value | $1,820,911 | 117,322 | $15.52* | |||
C Class, $0.01 Par Value | $1,615,341 | 105,863 | $15.26 | |||
R Class, $0.01 Par Value | $438,982 | 28,441 | $15.43 | |||
R6 Class, $0.01 Par Value | $409,436 | 26,024 | $15.73 |
*Maximum offering price $16.47 (net asset value divided by 0.9425).
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $6,160) | $ | 61,621 | |
Interest | 1,471 | ||
63,092 | |||
Expenses: | |||
Management fees | 125,911 | ||
Distribution and service fees: | |||
A Class | 2,112 | ||
C Class | 7,649 | ||
R Class | 945 | ||
Directors' fees and expenses | 223 | ||
Other expenses | 43 | ||
136,883 | |||
Net investment income (loss) | (73,791 | ) | |
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions (net of foreign tax expenses paid (refunded) of $7,303) | 741,919 | ||
Foreign currency translation transactions | (1,804 | ) | |
740,115 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $15,295) | 1,141,216 | ||
Translation of assets and liabilities in foreign currencies | (818 | ) | |
1,140,398 | |||
Net realized and unrealized gain (loss) | 1,880,513 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,806,722 |
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2017 | ||||||
Increase (Decrease) in Net Assets | May 31, 2018 | November 30, 2017 | ||||
Operations | ||||||
Net investment income (loss) | $ | (73,791 | ) | $ | (54,862 | ) |
Net realized gain (loss) | 740,115 | 943,716 | ||||
Change in net unrealized appreciation (depreciation) | 1,140,398 | 2,036,762 | ||||
Net increase (decrease) in net assets resulting from operations | 1,806,722 | 2,925,616 | ||||
Distributions to Shareholders | ||||||
From net realized gains: | ||||||
Investor Class | (529,903 | ) | — | |||
I Class | (47,681 | ) | — | |||
A Class | (81,489 | ) | — | |||
C Class | (77,608 | ) | — | |||
R Class | (17,910 | ) | — | |||
R6 Class | (18,878 | ) | — | |||
Decrease in net assets from distributions | (773,469 | ) | — | |||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 6,274,922 | 6,108,864 | ||||
Net increase (decrease) in net assets | 7,308,175 | 9,034,480 | ||||
Net Assets | ||||||
Beginning of period | 14,639,570 | 5,605,090 | ||||
End of period | $ | 21,947,745 | $ | 14,639,570 | ||
Accumulated net investment loss | $ | (84,392 | ) | $ | (10,601 | ) |
See Notes to Financial Statements.
13
Notes to Financial Statements |
MAY 31, 2018 (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, 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.
14
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.
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.
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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.
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 37% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class.
The annual management fee for each class is as follows:
Investor Class | I Class | 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, 2018 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2018 were $15,454,369 and $10,291,170, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2018 | Year ended November 30, 2017 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 464,665 | $ | 6,963,337 | 603,903 | $ | 7,813,445 | ||||
Issued in reinvestment of distributions | 36,736 | 522,899 | — | — | ||||||
Redeemed | (169,046 | ) | (2,482,826 | ) | (141,558 | ) | (1,850,032 | ) | ||
332,355 | 5,003,410 | 462,345 | 5,963,413 | |||||||
I Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 57,365 | 866,578 | — | — | ||||||
Issued in reinvestment of distributions | 3,332 | 47,681 | — | — | ||||||
Redeemed | (1,531 | ) | (22,901 | ) | — | — | ||||
59,166 | 891,358 | — | — | |||||||
A Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||
Sold | 8,679 | 128,659 | 2,893 | 41,378 | ||||||
Issued in reinvestment of distributions | 5,750 | 81,489 | — | — | ||||||
14,429 | 210,148 | 2,893 | 41,378 | |||||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 351 | 5,042 | 836 | 8,999 | ||||||
Issued in reinvestment of distributions | 5,556 | 77,608 | — | — | ||||||
Redeemed | (880 | ) | (12,385 | ) | — | — | ||||
5,027 | 70,265 | 836 | 8,999 | |||||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 4,933 | 73,065 | 3,309 | 43,878 | ||||||
Issued in reinvestment of distributions | 1,270 | 17,910 | — | — | ||||||
Redeemed | (821 | ) | (11,855 | ) | (392 | ) | (5,127 | ) | ||
5,382 | 79,120 | 2,917 | 38,751 | |||||||
R6 Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 131 | 1,948 | 4,797 | 59,181 | ||||||
Issued in reinvestment of distributions | 1,318 | 18,878 | — | — | ||||||
Redeemed | (14 | ) | (205 | ) | (208 | ) | (2,858 | ) | ||
1,435 | 20,621 | 4,589 | 56,323 | |||||||
Net increase (decrease) | 417,794 | $ | 6,274,922 | 473,580 | $ | 6,108,864 |
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).
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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 | ||||||||
Australia | — | $ | 445,745 | — | ||||
Austria | — | 160,030 | — | |||||
Belgium | — | 104,346 | — | |||||
Canada | — | 772,946 | — | |||||
China | $ | 613,818 | 511,555 | — | ||||
Denmark | — | 55,461 | — | |||||
Finland | — | 119,809 | — | |||||
France | — | 307,621 | — | |||||
Germany | — | 681,099 | — | |||||
Hong Kong | — | 292,192 | — | |||||
India | 252,478 | 302,306 | — | |||||
Indonesia | — | 143,096 | — | |||||
Italy | — | 279,639 | — | |||||
Japan | — | 1,796,074 | — | |||||
Netherlands | 214,506 | 164,996 | — | |||||
New Zealand | — | 166,204 | — | |||||
Norway | — | 168,339 | — | |||||
South Korea | — | 606,539 | — | |||||
Spain | — | 404,982 | — | |||||
Sweden | — | 170,930 | — | |||||
Switzerland | — | 509,103 | — | |||||
Taiwan | — | 263,534 | — | |||||
United Kingdom | — | 1,486,548 | — | |||||
Other Countries | 10,678,231 | — | — | |||||
Temporary Cash Investments | 232 | 710,416 | — | |||||
$ | 11,759,265 | $ | 10,623,510 | — |
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.
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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 | $ | 18,651,489 | |
Gross tax appreciation of investments | $ | 3,971,061 | |
Gross tax depreciation of investments | (239,775 | ) | |
Net tax appreciation (depreciation) of investments | $ | 3,731,286 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended 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 Realized Gains | 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 | |||||||||||||
2018(3) | $14.80 | (0.06) | 1.64 | 1.58 | (0.77) | $15.61 | 11.16% | 1.50%(4) | (0.76)%(4) | 60% | $15,794 | ||
2017 | $10.85 | (0.06) | 4.01 | 3.95 | — | $14.80 | 36.41% | 1.51% | (0.44)% | 130% | $10,059 | ||
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 | |||||||||||||
2018(3) | $14.85 | (0.04) | 1.64 | 1.60 | (0.77) | $15.68 | 11.26% | 1.30%(4) | (0.56)%(4) | 60% | $1,869 | ||
2017 | $10.86 | (0.02) | 4.01 | 3.99 | — | $14.85 | 36.74% | 1.31% | (0.24)% | 130% | $891 | ||
2016(5) | $10.00 | (0.01) | 0.87 | 0.86 | — | $10.86 | 8.60% | 1.30%(4) | (0.20)%(4) | 95% | $652 | ||
A Class | |||||||||||||
2018(3) | $14.74 | (0.08) | 1.63 | 1.55 | (0.77) | $15.52 | 10.99% | 1.75%(4) | (1.01)%(4) | 60% | $1,821 | ||
2017 | $10.83 | (0.08) | 3.99 | 3.91 | — | $14.74 | 36.10% | 1.76% | (0.69)% | 130% | $1,517 | ||
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 | |||||||||||||
2018(3) | $14.56 | (0.13) | 1.60 | 1.47 | (0.77) | $15.26 | 10.57% | 2.50%(4) | (1.76)%(4) | 60% | $1,615 | ||
2017 | $10.78 | (0.17) | 3.95 | 3.78 | — | $14.56 | 35.06% | 2.51% | (1.44)% | 130% | $1,468 | ||
2016(5) | $10.00 | (0.10) | 0.88 | 0.78 | — | $10.78 | 7.80% | 2.50%(4) | (1.40)%(4) | 95% | $1,078 |
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 Realized Gains | 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 | |||||||||||||
2018(3) | $14.68 | (0.09) | 1.61 | 1.52 | (0.77) | $15.43 | 10.83% | 2.00%(4) | (1.26)%(4) | 60% | $439 | ||
2017 | $10.81 | (0.11) | 3.98 | 3.87 | — | $14.68 | 35.80% | 2.01% | (0.94)% | 130% | $338 | ||
2016(5) | $10.00 | (0.06) | 0.87 | 0.81 | — | $10.81 | 8.10% | 2.00%(4) | (0.90)%(4) | 95% | $218 | ||
R6 Class | |||||||||||||
2018(3) | $14.89 | (0.03) | 1.64 | 1.61 | (0.77) | $15.73 | 11.30% | 1.15%(4) | (0.41)%(4) | 60% | $409 | ||
2017 | $10.87 | (0.01) | 4.03 | 4.02 | — | $14.89 | 36.86% | 1.16% | (0.09)% | 130% | $366 | ||
2016(5) | $10.00 | —(6) | 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, 2018 (unaudited). |
(4) | Annualized. |
(5) | March 29, 2016 (fund inception) through November 30, 2016. |
(6) | Per-share amount was less than $0.005. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
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. | ||
©2018 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92638 1807 |
![acihorizblkd26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/acihorizblkd26.jpg)
Semiannual Report | |
May 31, 2018 | |
International Discovery Fund | |
Investor Class (TWEGX) | |
I Class (TIDIX) | |
Y Class (AIYDX) | |
A Class (ACIDX) | |
C Class (TWECX) | |
R Class (TWERX) |
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/0000872825-18-000059/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the six months ended May 31, 2018. 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.
Volatility’s Rise Restrains Returns
Global stocks continued to rally early in the reporting period, bolstered by improving growth trends throughout the world, positive corporate earnings results, generally muted inflation, and still-low interest rates. For example, U.S. stocks were notably strong, with the S&P 500 Index gaining nearly 8% for the two months ended January 31, 2018. Outside the U.S., returns were similarly robust, as central bank accommodations enhanced the positive economic and earnings backdrop.
Sentiment changed swiftly and sharply in early February. U.S. stocks plunged after the U.S. Department of Labor announced wages grew at their fastest year-over-year pace in nine years. This news, coupled with other positive economic data and rising inflation expectations, pushed interest rates higher and triggered fears that the Federal Reserve (the Fed) would ramp up its rate-hike campaign. In addition, the U.S. announced a series of tariffs that sparked fears of a global trade war. However, by the end of the reporting period, U.S. market volatility subsided somewhat. U.S. economic and inflation data and the Fed’s rate-hike strategy were generally aligned with investor expectations, while trade concerns eased. But outside the U.S., stocks continued to stumble on slowing growth in Europe, political uncertainty in Italy, and a resurgence in the U.S. dollar. For the six-month period overall, U.S. stocks advanced modestly, but non-U.S. stocks were generally flat. Meanwhile, U.S. bond returns declined as interest rates and inflation increased. Non-U.S. bonds also declined, but only fractionally.
In this environment of heightened global market volatility, improving global growth, and differing central bank strategies, investors likely will face new opportunities and challenges in the months ahead. We believe this scenario warrants a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Fund Characteristics |
MAY 31, 2018 | |
Top Ten Holdings | % of net assets |
Melco Resorts & Entertainment Ltd. ADR | 2.1% |
Aristocrat Leisure Ltd. | 2.0% |
CNH Industrial NV | 2.0% |
Sika AG | 2.0% |
Chailease Holding Co. Ltd. | 1.9% |
Wirecard AG | 1.8% |
Ubisoft Entertainment SA | 1.6% |
Tokai Carbon Co. Ltd. | 1.6% |
Bombardier, Inc., B Shares | 1.6% |
China Resources Beer Holdings Co. Ltd. | 1.5% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 98.9% |
Temporary Cash Investments | 0.4% |
Other Assets and Liabilities | 0.7% |
Investments by Country | % of net assets |
Japan | 13.9% |
United Kingdom | 13.6% |
Canada | 9.1% |
China | 7.2% |
France | 6.4% |
Switzerland | 5.6% |
Germany | 4.8% |
South Korea | 4.4% |
Taiwan | 3.6% |
Australia | 3.0% |
Hong Kong | 2.8% |
Netherlands | 2.7% |
Italy | 2.5% |
Spain | 2.3% |
India | 2.2% |
Belgium | 2.2% |
Other Countries | 12.6% |
Cash and Equivalents* | 1.1% |
*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, 2017 to May 31, 2018.
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 12/1/17 | Ending Account Value 5/31/18 | Expenses Paid During Period(1) 12/1/17 - 5/31/18 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,055.60 | $8.35 | 1.63% |
I Class | $1,000 | $1,056.90 | $7.33 | 1.43% |
Y Class | $1,000 | $1,057.70 | $6.57 | 1.28% |
A Class | $1,000 | $1,053.90 | $9.63 | 1.88% |
C Class | $1,000 | $1,049.80 | $13.44 | 2.63% |
R Class | $1,000 | $1,053.20 | $10.90 | 2.13% |
Hypothetical | ||||
Investor Class | $1,000 | $1,016.80 | $8.20 | 1.63% |
I Class | $1,000 | $1,017.80 | $7.19 | 1.43% |
Y Class | $1,000 | $1,018.55 | $6.44 | 1.28% |
A Class | $1,000 | $1,015.56 | $9.45 | 1.88% |
C Class | $1,000 | $1,011.82 | $13.19 | 2.63% |
R Class | $1,000 | $1,014.31 | $10.70 | 2.13% |
(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. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
5
Schedule of Investments |
MAY 31, 2018 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 98.9% | |||||
Argentina — 0.4% | |||||
Grupo Supervielle SA ADR | 146,001 | $ | 2,506,837 | ||
Australia — 3.0% | |||||
Aristocrat Leisure Ltd. | 507,150 | 11,483,171 | |||
Treasury Wine Estates Ltd. | 443,680 | 5,545,697 | |||
17,028,868 | |||||
Belgium — 2.2% | |||||
Galapagos NV(1) | 55,390 | 5,611,361 | |||
Umicore SA | 119,460 | 6,736,715 | |||
12,348,076 | |||||
Brazil — 1.8% | |||||
Azul SA ADR(1) | 190,720 | 4,077,594 | |||
Localiza Rent a Car SA | 324,400 | 2,146,440 | |||
Magazine Luiza SA | 129,200 | 3,738,910 | |||
9,962,944 | |||||
Canada — 9.1% | |||||
Arizona Mining, Inc.(1) | 660,560 | 2,104,051 | |||
Bombardier, Inc., B Shares(1) | 2,321,510 | 8,737,443 | |||
BRP, Inc. | 167,570 | 7,805,976 | |||
Colliers International Group, Inc. | 49,060 | 3,539,312 | |||
First Quantum Minerals Ltd. | 389,060 | 6,106,256 | |||
Kirkland Lake Gold Ltd. | 261,070 | 4,800,177 | |||
Parex Resources, Inc.(1) | 292,270 | 5,276,909 | |||
Premium Brands Holdings Corp. | 77,110 | 6,901,006 | |||
Trevali Mining Corp.(1) | 2,745,960 | 2,244,885 | |||
Trican Well Service Ltd.(1) | 1,583,820 | 3,908,857 | |||
51,424,872 | |||||
China — 7.2% | |||||
3SBio, Inc.(1) | 1,390,000 | 3,959,130 | |||
58.com, Inc. ADR(1) | 41,760 | 3,391,747 | |||
Baozun, Inc. ADR(1) | 27,710 | 1,698,900 | |||
China Lodging Group Ltd. ADR | 86,640 | 3,813,026 | |||
China Resources Beer Holdings Co. Ltd. | 1,764,000 | 8,559,088 | |||
China Resources Cement Holdings Ltd. | 4,014,000 | 4,695,200 | |||
Shenzhou International Group Holdings Ltd. | 494,000 | 5,770,465 | |||
SINA Corp.(1) | 45,340 | 4,117,779 | |||
Sunny Optical Technology Group Co. Ltd. | 210,400 | 4,237,032 | |||
40,242,367 | |||||
Denmark — 1.7% | |||||
DSV A/S | 73,940 | 6,143,098 |
6
Shares | Value | ||||
Topdanmark A/S | 79,830 | $ | 3,583,207 | ||
9,726,305 | |||||
France — 6.4% | |||||
Eiffage SA | 40,160 | 4,519,962 | |||
Euronext NV | 77,630 | 4,968,290 | |||
Fnac Darty SA(1) | 40,180 | 4,221,564 | |||
Rubis SCA | 69,340 | 4,884,032 | |||
SOITEC(1) | 39,550 | 3,655,941 | |||
Teleperformance | 31,620 | 4,997,929 | |||
Ubisoft Entertainment SA(1) | 82,840 | 9,049,876 | |||
36,297,594 | |||||
Germany — 4.8% | |||||
1&1 Drillisch AG | 39,840 | 2,757,294 | |||
Aroundtown SA | 204,059 | 1,697,800 | |||
Rheinmetall AG | 30,390 | 3,878,843 | |||
Scout24 AG | 70,750 | 3,626,278 | |||
Wacker Chemie AG | 29,290 | 4,761,904 | |||
Wirecard AG | 66,160 | 10,230,443 | |||
26,952,562 | |||||
Hong Kong — 2.8% | |||||
Health and Happiness H&H International Holdings Ltd.(1) | 493,500 | 3,875,162 | |||
Melco Resorts & Entertainment Ltd. ADR | 358,510 | 11,708,936 | |||
15,584,098 | |||||
India — 2.2% | |||||
Ashok Leyland Ltd. | 1,879,470 | 4,108,616 | |||
Indiabulls Housing Finance Ltd. | 280,690 | 5,135,369 | |||
Vakrangee Ltd. | 399,691 | 192,428 | |||
Yes Bank Ltd. | 591,810 | 3,025,747 | |||
12,462,160 | |||||
Indonesia — 0.9% | |||||
United Tractors Tbk PT | 2,040,300 | 5,129,977 | |||
Israel — 1.8% | |||||
Frutarom Industries Ltd. | 28,760 | 2,808,445 | |||
Nice Ltd. ADR(1) | 70,100 | 7,413,075 | |||
10,221,520 | |||||
Italy — 2.5% | |||||
CNH Industrial NV | 961,370 | 11,216,704 | |||
IMA Industria Macchine Automatiche SpA | 28,650 | 2,784,864 | |||
14,001,568 | |||||
Japan — 13.9% | |||||
Anritsu Corp. | 442,200 | 5,891,883 | |||
Cosmos Pharmaceutical Corp. | 20,200 | 4,342,730 | |||
Daifuku Co. Ltd. | 56,600 | 2,918,660 | |||
Don Quijote Holdings Co. Ltd. | 56,600 | 3,003,871 | |||
Hitachi Construction Machinery Co. Ltd. | 92,100 | 3,376,130 | |||
Ichikoh Industries Ltd. | 234,500 | 3,098,084 | |||
Kose Corp. | 21,800 | 4,725,156 |
7
Shares | Value | ||||
Nextage Co. Ltd. | 253,400 | $ | 2,887,443 | ||
Outsourcing, Inc. | 292,400 | 5,557,506 | |||
Pressance Corp. | 247,700 | 3,990,128 | |||
Round One Corp. | 108,900 | 1,913,642 | |||
Sanwa Holdings Corp. | 219,100 | 2,386,308 | |||
Seino Holdings Co. Ltd. | 198,300 | 3,722,479 | |||
Seria Co. Ltd. | 44,200 | 2,125,997 | |||
Start Today Co. Ltd. | 164,000 | 5,675,282 | |||
SUMCO Corp. | 142,700 | 3,438,857 | |||
THK Co. Ltd. | 191,500 | 6,764,258 | |||
Tokai Carbon Co. Ltd. | 430,500 | 8,781,774 | |||
Tsubaki Nakashima Co. Ltd. | 142,500 | 3,544,328 | |||
78,144,516 | |||||
Mexico — 0.5% | |||||
Alpek SAB de CV | 1,793,064 | 2,673,686 | |||
Netherlands — 2.7% | |||||
AMG Advanced Metallurgical Group NV | 111,830 | 6,410,051 | |||
BE Semiconductor Industries NV | 98,920 | 3,315,697 | |||
InterXion Holding NV(1) | 83,019 | 5,301,593 | |||
15,027,341 | |||||
New Zealand — 0.6% | |||||
a2 Milk Co. Ltd.(1) | 446,990 | 3,336,995 | |||
Norway — 1.3% | |||||
Aker BP ASA | 77,530 | 2,822,521 | |||
Borr Drilling Ltd.(1) | 828,443 | 4,242,393 | |||
7,064,914 | |||||
Russia — 0.9% | |||||
Yandex NV, A Shares(1) | 151,340 | 5,072,917 | |||
Singapore — 0.1% | |||||
Venture Corp. Ltd. | 51,900 | 812,643 | |||
South Korea — 4.4% | |||||
Cafe24 Corp.(1) | 17,450 | 2,781,569 | |||
Dentium Co. Ltd. | 35,146 | 2,857,077 | |||
Finetex EnE, Inc.(1) | 220,367 | 512,306 | |||
Hotel Shilla Co. Ltd. | 68,900 | 7,890,753 | |||
ING Life Insurance Korea Ltd. | 78,040 | 2,905,626 | |||
Koh Young Technology, Inc. | 30,940 | 2,719,968 | |||
Samsung Electro-Mechanics Co. Ltd. | 41,640 | 5,151,206 | |||
24,818,505 | |||||
Spain — 2.3% | |||||
Cellnex Telecom SA | 214,010 | 5,454,003 | |||
Ence Energia y Celulosa SA | 437,670 | 3,438,072 | |||
NH Hotel Group SA | 549,480 | 4,125,678 | |||
13,017,753 | |||||
Sweden — 1.8% | |||||
Dometic Group AB | 752,690 | 7,716,564 |
8
Shares | Value | ||||
Elekta AB, B Shares | 180,610 | $ | 2,202,021 | ||
9,918,585 | |||||
Switzerland — 5.6% | |||||
GAM Holding AG | 233,365 | 3,495,836 | |||
Georg Fischer AG | 3,360 | 4,337,094 | |||
Partners Group Holding AG | 7,590 | 5,470,353 | |||
Sika AG | 1,380 | 10,986,991 | |||
Straumann Holding AG | 10,690 | 7,064,583 | |||
31,354,857 | |||||
Taiwan — 3.6% | |||||
Chailease Holding Co. Ltd. | 2,951,000 | 10,490,775 | |||
Eclat Textile Co. Ltd. | 349,000 | 4,251,475 | |||
Globalwafers Co. Ltd. | 58,000 | 1,139,432 | |||
Macronix International(1) | 1,895,845 | 3,103,721 | |||
TaiMed Biologics, Inc.(1) | 130,000 | 1,368,923 | |||
20,354,326 | |||||
Thailand — 0.8% | |||||
Beauty Community PCL | 7,923,300 | 4,321,129 | |||
United Kingdom — 13.6% | |||||
Ashtead Group plc | 178,200 | 5,498,913 | |||
ASOS plc(1) | 41,830 | 3,683,287 | |||
B&M European Value Retail SA | 733,840 | 3,924,905 | |||
Beazley plc | 506,830 | 4,029,367 | |||
Burford Capital Ltd. | 359,090 | 7,600,298 | |||
Coca-Cola HBC AG(1) | 159,470 | 5,449,196 | |||
Fevertree Drinks plc | 74,560 | 2,977,772 | |||
Howden Joinery Group plc | 326,970 | 2,178,674 | |||
Intermediate Capital Group plc | 361,220 | 5,492,488 | |||
KAZ Minerals plc(1) | 211,840 | 2,853,690 | |||
Keywords Studios plc | 153,630 | 3,480,329 | |||
NMC Health plc | 117,280 | 5,495,872 | |||
Persimmon plc | 186,270 | 7,013,822 | |||
Segro plc | 746,430 | 6,496,660 | |||
Weir Group plc (The) | 183,890 | 5,358,055 | |||
Wizz Air Holdings plc(1) | 107,860 | 4,866,613 | |||
76,399,941 | |||||
TOTAL COMMON STOCKS (Cost $489,279,633) | 556,207,856 | ||||
TEMPORARY CASH INVESTMENTS — 0.4% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 8/31/18 - 8/15/44, valued at $1,047,786), in a joint trading account at 1.50%, dated 5/31/18, due 6/1/18 (Delivery value $1,022,195) | 1,022,152 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.75%, 11/15/43, valued at $872,716), at 0.74%, dated 5/31/18, due 6/1/18 (Delivery value $852,018) | 852,000 |
9
Shares | Value | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 832 | $ | 832 | ||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $1,874,984) | 1,874,984 | ||||
TOTAL INVESTMENT SECURITIES — 99.3% (Cost $491,154,617) | 558,082,840 | ||||
OTHER ASSETS AND LIABILITIES — 0.7% | 4,183,341 | ||||
TOTAL NET ASSETS — 100.0% | $ | 562,266,181 |
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Consumer Discretionary | 20.3 | % |
Industrials | 18.5 | % |
Information Technology | 15.8 | % |
Materials | 12.4 | % |
Financials | 10.4 | % |
Consumer Staples | 8.1 | % |
Health Care | 5.1 | % |
Energy | 3.8 | % |
Real Estate | 2.1 | % |
Telecommunication Services | 1.5 | % |
Utilities | 0.9 | % |
Cash and Equivalents* | 1.1 | % |
*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.
10
Statement of Assets and Liabilities |
MAY 31, 2018 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $491,154,617) | $ | 558,082,840 | |
Foreign currency holdings, at value (cost of $135,190) | 135,231 | ||
Receivable for investments sold | 15,079,639 | ||
Receivable for capital shares sold | 99,702 | ||
Dividends and interest receivable | 982,270 | ||
Other assets | 111,375 | ||
574,491,057 | |||
Liabilities | |||
Payable for investments purchased | 11,364,114 | ||
Payable for capital shares redeemed | 94,621 | ||
Accrued management fees | 764,492 | ||
Distribution and service fees payable | 1,649 | ||
12,224,876 | |||
Net Assets | $ | 562,266,181 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 451,117,002 | |
Accumulated net investment loss | (5,081,031 | ) | |
Undistributed net realized gain | 49,363,082 | ||
Net unrealized appreciation | 66,867,128 | ||
$ | 562,266,181 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $521,755,776 | 29,763,372 | $17.53 | |||
I Class, $0.01 Par Value | $35,632,771 | 2,005,565 | $17.77 | |||
Y Class, $0.01 Par Value | $6,570 | 369 | $17.80 | |||
A Class, $0.01 Par Value | $3,812,145 | 223,655 | $17.04* | |||
C Class, $0.01 Par Value | $855,455 | 51,395 | $16.64 | |||
R Class, $0.01 Par Value | $203,464 | 11,815 | $17.22 |
*Maximum offering price $18.08 (net asset value divided by 0.9425).
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $426,704) | $ | 3,852,919 | |
Interest | 18,078 | ||
3,870,997 | |||
Expenses: | |||
Management fees | 4,536,248 | ||
Distribution and service fees: | |||
A Class | 5,388 | ||
C Class | 4,507 | ||
R Class | 350 | ||
Directors' fees and expenses | 7,694 | ||
Other expenses | 16,817 | ||
4,571,004 | |||
Net investment income (loss) | (700,007 | ) | |
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 49,499,670 | ||
Foreign currency translation transactions | (115,186 | ) | |
49,384,484 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $433,426) | (18,275,724 | ) | |
Translation of assets and liabilities in foreign currencies | (17,655 | ) | |
(18,293,379 | ) | ||
Net realized and unrealized gain (loss) | 31,091,105 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 30,391,098 |
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2017 | ||||||
Increase (Decrease) in Net Assets | May 31, 2018 | November 30, 2017 | ||||
Operations | ||||||
Net investment income (loss) | $ | (700,007 | ) | $ | (1,689,749 | ) |
Net realized gain (loss) | 49,384,484 | 98,264,879 | ||||
Change in net unrealized appreciation (depreciation) | (18,293,379 | ) | 57,458,605 | |||
Net increase (decrease) in net assets resulting from operations | 30,391,098 | 154,033,735 | ||||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (1,722,208 | ) | — | |||
I Class | (153,955 | ) | — | |||
Y Class | (35 | ) | — | |||
A Class | (3,172 | ) | — | |||
Decrease in net assets from distributions | (1,879,370 | ) | — | |||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (16,986,426 | ) | (50,054,022 | ) | ||
Redemption Fees | ||||||
Increase in net assets from redemption fees | — | 4,236 | ||||
Net increase (decrease) in net assets | 11,525,302 | 103,983,949 | ||||
Net Assets | ||||||
Beginning of period | 550,740,879 | 446,756,930 | ||||
End of period | $ | 562,266,181 | $ | 550,740,879 | ||
Accumulated net investment loss | $ | (5,081,031 | ) | $ | (2,501,654 | ) |
See Notes to Financial Statements.
13
Notes to Financial Statements |
MAY 31, 2018 (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, 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.
14
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.
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.
15
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 — Prior to October 9, 2017, the fund may have imposed a 2.00% redemption fee on shares held less than 60 days. The fee was not applicable to all classes. The redemption fee was retained by the fund to help 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 non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The 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, 2018 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |
Investor Class | 1.200% to 1.750% | 1.62% |
I Class | 1.000% to 1.550% | 1.42% |
Y Class | 0.850% to 1.400% | 1.27% |
A Class | 1.200% to 1.750% | 1.62% |
C Class | 1.200% to 1.750% | 1.62% |
R Class | 1.200% to 1.750% | 1.62% |
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, 2018 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
16
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 $305,148 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $205,550 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, 2018 were $414,331,360 and $424,693,524, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2018 | Year ended November 30, 2017(1) | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 340,000,000 | 340,000,000 | ||||||||
Sold | 617,983 | $ | 10,800,543 | 1,032,656 | $ | 14,967,943 | ||||
Issued in reinvestment of distributions | 93,498 | 1,636,220 | — | — | ||||||
Redeemed | (1,997,434 | ) | (34,555,617 | ) | (4,656,519 | ) | (64,073,784 | ) | ||
(1,285,953 | ) | (22,118,854 | ) | (3,623,863 | ) | (49,105,841 | ) | |||
I Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 476,366 | 8,282,561 | 386,641 | 5,886,834 | ||||||
Issued in reinvestment of distributions | 8,632 | 153,040 | — | — | ||||||
Redeemed | (128,123 | ) | (2,272,764 | ) | (299,960 | ) | (4,256,349 | ) | ||
356,875 | 6,162,837 | 86,681 | 1,630,485 | |||||||
Y Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | — | — | 367 | 5,000 | ||||||
Issued in reinvestment of distributions | 2 | 35 | — | — | ||||||
2 | 35 | 367 | 5,000 | |||||||
A Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 20,039 | 337,783 | 39,572 | 539,675 | ||||||
Issued in reinvestment of distributions | 186 | 3,172 | — | — | ||||||
Redeemed | (84,672 | ) | (1,429,542 | ) | (190,435 | ) | (2,697,895 | ) | ||
(64,447 | ) | (1,088,587 | ) | (150,863 | ) | (2,158,220 | ) | |||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 2,398 | 38,102 | 9,008 | 128,587 | ||||||
Redeemed | (6,577 | ) | (109,092 | ) | (28,165 | ) | (420,180 | ) | ||
(4,179 | ) | (70,990 | ) | (19,157 | ) | (291,593 | ) | |||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 7,852 | 134,740 | 2,625 | 37,296 | ||||||
Redeemed | (328 | ) | (5,607 | ) | (11,805 | ) | (171,149 | ) | ||
7,524 | 129,133 | (9,180 | ) | (133,853 | ) | |||||
Net increase (decrease) | (990,178 | ) | $ | (16,986,426 | ) | (3,716,015 | ) | $ | (50,054,022 | ) |
(1) | April 10, 2017 (commencement of sale) through November 30, 2017 for the Y Class. |
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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 | ||||||||
Argentina | $ | 2,506,837 | — | — | ||||
Brazil | 4,077,594 | $ | 5,885,350 | — | ||||
China | 13,021,452 | 27,220,915 | — | |||||
Hong Kong | 11,708,936 | 3,875,162 | — | |||||
Israel | 7,413,075 | 2,808,445 | — | |||||
Netherlands | 5,301,593 | 9,725,748 | — | |||||
Russia | 5,072,917 | — | — | |||||
Other Countries | — | 457,589,832 | — | |||||
Temporary Cash Investments | 832 | 1,874,152 | — | |||||
$ | 49,103,236 | $ | 508,979,604 | — |
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.
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As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 491,154,617 | |
Gross tax appreciation of investments | $ | 84,403,997 | |
Gross tax depreciation of investments | (17,475,774 | ) | |
Net tax appreciation (depreciation) of investments | $ | 66,928,223 |
The cost of investments for federal income tax purposes was the same as the cost for financial reporting purposes.
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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 | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2018(3) | $16.66 | (0.02) | 0.95 | 0.93 | (0.06) | $17.53 | 5.56% | 1.63%(4) | (0.26)%(4) | 74% | $521,756 | ||
2017 | $12.15 | (0.05) | 4.56 | 4.51 | — | $16.66 | 37.12% | 1.65% | (0.35)% | 125% | $517,259 | ||
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 | —(5) | 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 | —(5) | 2.79 | 2.79 | (0.17) | $12.70 | 27.97% | 1.56% | 0.03% | 157% | $620,359 | ||
I Class | |||||||||||||
2018(3) | $16.90 | —(5) | 0.96 | 0.96 | (0.09) | $17.77 | 5.69% | 1.43%(4) | (0.06)%(4) | 74% | $35,633 | ||
2017 | $12.30 | (0.02) | 4.62 | 4.60 | — | $16.90 | 37.40% | 1.45% | (0.15)% | 125% | $27,864 | ||
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 | ||
Y Class | |||||||||||||
2018(3) | $16.92 | 0.01 | 0.97 | 0.98 | (0.10) | $17.80 | 5.77% | 1.28%(4) | 0.09%(4) | 74% | $7 | ||
2017(7) | $13.61 | —(5) | 3.31 | 3.31 | — | $16.92 | 24.32% | 1.30%(4) | 0.02%(4) | 125%(8) | $6 |
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 | |||||||||||||
2018(3) | $16.18 | (0.05) | 0.92 | 0.87 | (0.01) | $17.04 | 5.39% | 1.88%(4) | (0.51)%(4) | 74% | $3,812 | ||
2017 | $11.83 | (0.08) | 4.43 | 4.35 | — | $16.18 | 36.77% | 1.90% | (0.60)% | 125% | $4,661 | ||
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 | ||
C Class | |||||||||||||
2018(3) | $15.85 | (0.10) | 0.89 | 0.79 | — | $16.64 | 4.98% | 2.63%(4) | (1.26)%(4) | 74% | $855 | ||
2017 | $11.67 | (0.18) | 4.36 | 4.18 | — | $15.85 | 35.82% | 2.65% | (1.35)% | 125% | $881 | ||
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 |
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 | |||||||||||||
2018(3) | $16.35 | (0.03) | 0.90 | 0.87 | — | $17.22 | 5.32% | 2.13%(4) | (0.76)%(4) | 74% | $203 | ||
2017 | $11.98 | (0.11) | 4.48 | 4.37 | — | $16.35 | 36.36% | 2.15% | (0.85)% | 125% | $70 | ||
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 |
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, 2018 (unaudited). |
(4) | Annualized. |
(5) | Per-share amount was less than $0.005. |
(6) | Ratio was less than 0.005%. |
(7) | April 10, 2017 (commencement of sale) through November 30, 2017. |
(8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2017. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
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. | ||
©2018 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92634 1807 |
![acihorizblkd26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/acihorizblkd26.jpg)
Semiannual Report | |
May 31, 2018 | |
International Growth Fund | |
Investor Class (TWIEX) | |
I Class (TGRIX) | |
Y Class (ATYGX) | |
A Class (TWGAX) | |
C Class (AIWCX) | |
R Class (ATGRX) | |
R5 Class (ATGGX) | |
R6 Class (ATGDX) |
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/0000872825-18-000059/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the six months ended May 31, 2018. 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.
Volatility’s Rise Restrains Returns
Global stocks continued to rally early in the reporting period, bolstered by improving growth trends throughout the world, positive corporate earnings results, generally muted inflation, and still-low interest rates. For example, U.S. stocks were notably strong, with the S&P 500 Index gaining nearly 8% for the two months ended January 31, 2018. Outside the U.S., returns were similarly robust, as central bank accommodations enhanced the positive economic and earnings backdrop.
Sentiment changed swiftly and sharply in early February. U.S. stocks plunged after the U.S. Department of Labor announced wages grew at their fastest year-over-year pace in nine years. This news, coupled with other positive economic data and rising inflation expectations, pushed interest rates higher and triggered fears that the Federal Reserve (the Fed) would ramp up its rate-hike campaign. In addition, the U.S. announced a series of tariffs that sparked fears of a global trade war. However, by the end of the reporting period, U.S. market volatility subsided somewhat. U.S. economic and inflation data and the Fed’s rate-hike strategy were generally aligned with investor expectations, while trade concerns eased. But outside the U.S., stocks continued to stumble on slowing growth in Europe, political uncertainty in Italy, and a resurgence in the U.S. dollar. For the six-month period overall, U.S. stocks advanced modestly, but non-U.S. stocks were generally flat. Meanwhile, U.S. bond returns declined as interest rates and inflation increased. Non-U.S. bonds also declined, but only fractionally.
In this environment of heightened global market volatility, improving global growth, and differing central bank strategies, investors likely will face new opportunities and challenges in the months ahead. We believe this scenario warrants a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2018 | |
Top Ten Holdings | % of net assets |
AIA Group Ltd. | 2.3% |
CSL Ltd. | 2.3% |
Lonza Group AG | 2.1% |
London Stock Exchange Group plc | 1.8% |
Diageo plc | 1.8% |
Treasury Wine Estates Ltd. | 1.7% |
Danone SA | 1.7% |
adidas AG | 1.7% |
Start Today Co. Ltd. | 1.5% |
AstraZeneca plc | 1.5% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 97.8% |
Temporary Cash Investments | 2.5% |
Other Assets and Liabilities | (0.3)% |
Investments by Country | % of net assets |
United Kingdom | 20.8% |
Japan | 16.5% |
Germany | 7.7% |
France | 6.7% |
Switzerland | 5.2% |
China | 5.1% |
Netherlands | 4.3% |
Australia | 4.0% |
Ireland | 3.4% |
Canada | 2.9% |
Sweden | 2.7% |
Belgium | 2.3% |
Hong Kong | 2.3% |
Spain | 2.2% |
Denmark | 2.1% |
Brazil | 2.1% |
Other Countries | 7.5% |
Cash and Equivalents* | 2.2% |
*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, 2017 to May 31, 2018.
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 12/1/17 | Ending Account Value 5/31/18 | Expenses Paid During Period(1) 12/1/17 - 5/31/18 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,048.90 | $5.98 | 1.17% |
I Class | $1,000 | $1,050.30 | $4.96 | 0.97% |
Y Class | $1,000 | $1,050.40 | $4.19 | 0.82% |
A Class | $1,000 | $1,048.40 | $7.25 | 1.42% |
C Class | $1,000 | $1,044.30 | $11.06 | 2.17% |
R Class | $1,000 | $1,046.80 | $8.52 | 1.67% |
R5 Class | $1,000 | $1,050.40 | $4.96 | 0.97% |
R6 Class | $1,000 | $1,050.70 | $4.19 | 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 | $4.13 | 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 | $4.89 | 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. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
5
Schedule of Investments |
MAY 31, 2018 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 97.8% | |||||
Australia — 4.0% | |||||
CSL Ltd. | 260,030 | $ | 36,420,375 | ||
Treasury Wine Estates Ltd. | 2,219,950 | 27,747,858 | |||
64,168,233 | |||||
Austria — 1.3% | |||||
Erste Group Bank AG(1) | 508,152 | 21,039,364 | |||
Belgium — 2.3% | |||||
KBC Group NV | 228,230 | 17,664,712 | |||
Umicore SA | 355,730 | 20,060,704 | |||
37,725,416 | |||||
Brazil — 2.1% | |||||
Banco do Brasil SA | 550,100 | 4,461,425 | |||
Itau Unibanco Holding SA, Preference Shares | 407,200 | 4,692,912 | |||
Localiza Rent a Car SA | 1,844,800 | 12,206,390 | |||
Lojas Renner SA | 589,300 | 4,674,476 | |||
Magazine Luiza SA | 261,400 | 7,564,636 | |||
33,599,839 | |||||
Canada — 2.9% | |||||
Bombardier, Inc., B Shares(1) | 6,237,780 | 23,477,068 | |||
Dollarama, Inc. | 65,710 | 7,584,067 | |||
First Quantum Minerals Ltd. | 959,550 | 15,060,036 | |||
46,121,171 | |||||
China — 5.1% | |||||
Alibaba Group Holding Ltd. ADR(1) | 112,150 | 22,206,822 | |||
ANTA Sports Products Ltd. | 2,373,000 | 13,650,395 | |||
China Lodging Group Ltd. ADR | 267,320 | 11,764,753 | |||
TAL Education Group ADR(1) | 337,300 | 14,321,758 | |||
Tencent Holdings Ltd. | 395,400 | 19,931,186 | |||
81,874,914 | |||||
Denmark — 2.1% | |||||
Chr Hansen Holding A/S | 204,610 | 19,672,539 | |||
DSV A/S | 178,490 | 14,829,343 | |||
34,501,882 | |||||
Finland — 1.0% | |||||
Neste Oyj | 205,780 | 16,775,221 | |||
France — 6.7% | |||||
Accor SA | 247,570 | 13,612,460 | |||
Arkema SA | 37,190 | 4,557,971 | |||
Danone SA | 356,840 | 27,227,589 | |||
Kering SA | 39,030 | 22,520,504 | |||
Ubisoft Entertainment SA(1) | 114,600 | 12,519,505 | |||
Valeo SA | 235,846 | 14,944,657 | |||
Vivendi SA | 497,500 | 12,516,915 | |||
107,899,601 | |||||
Germany — 7.7% | |||||
adidas AG | 118,450 | 26,815,973 |
6
Shares | Value | ||||
Deutsche Boerse AG | 145,460 | $ | 19,463,107 | ||
HeidelbergCement AG | 218,100 | 19,332,364 | |||
Infineon Technologies AG | 483,710 | 13,292,483 | |||
Symrise AG | 185,240 | 15,052,179 | |||
Wirecard AG | 85,000 | 13,143,707 | |||
Zalando SE(1) | 307,530 | 16,388,955 | |||
123,488,768 | |||||
Hong Kong — 2.3% | |||||
AIA Group Ltd. | 4,043,200 | 36,893,990 | |||
India — 0.8% | |||||
HDFC Bank Ltd. | 406,700 | 13,343,853 | |||
Indonesia — 0.9% | |||||
Bank Mandiri Persero Tbk PT | 29,514,700 | 14,923,094 | |||
Ireland — 3.4% | |||||
CRH plc | 610,540 | 22,557,432 | |||
Kerry Group plc, A Shares | 113,740 | 12,018,262 | |||
Ryanair Holdings plc ADR(1) | 179,351 | 20,788,574 | |||
55,364,268 | |||||
Italy — 0.6% | |||||
UniCredit SpA | 603,945 | 10,090,738 | |||
Japan — 16.5% | |||||
Chiba Bank Ltd. (The) | 1,238,000 | 9,496,859 | |||
Coca-Cola Bottlers Japan Holdings, Inc. | 284,300 | 11,908,765 | |||
CyberAgent, Inc. | 269,000 | 13,990,790 | |||
Daikin Industries Ltd. | 120,800 | 13,902,876 | |||
Don Quijote Holdings Co. Ltd. | 226,600 | 12,026,100 | |||
Keyence Corp. | 35,900 | 21,945,182 | |||
Komatsu Ltd. | 553,000 | 18,090,018 | |||
MonotaRO Co. Ltd. | 304,000 | 12,193,264 | |||
Nintendo Co. Ltd. | 36,800 | 15,149,222 | |||
Nitori Holdings Co. Ltd. | 73,700 | 12,639,360 | |||
Pola Orbis Holdings, Inc. | 320,600 | 15,809,339 | |||
Recruit Holdings Co. Ltd. | 650,700 | 18,030,894 | |||
Rohm Co. Ltd. | 155,300 | 14,288,724 | |||
Ryohin Keikaku Co. Ltd. | 41,100 | 13,929,184 | |||
Shiseido Co. Ltd. | 247,400 | 19,514,879 | |||
Start Today Co. Ltd. | 705,400 | 24,410,632 | |||
Sysmex Corp. | 216,000 | 19,365,758 | |||
266,691,846 | |||||
Mexico — 0.6% | |||||
Grupo Financiero Banorte SAB de CV | 1,931,910 | 10,234,605 | |||
Netherlands — 4.3% | |||||
ASML Holding NV | 110,880 | 21,632,821 | |||
Heineken NV | 160,215 | 16,062,459 | |||
InterXion Holding NV(1) | 211,160 | 13,484,678 | |||
Unilever NV CVA | 327,380 | 18,241,377 | |||
69,421,335 | |||||
Portugal — 0.5% | |||||
Jeronimo Martins SGPS SA | 477,091 | 7,490,270 | |||
Russia — 0.8% | |||||
Yandex NV, A Shares(1) | 373,820 | 12,530,446 |
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Shares | Value | ||||
Spain — 2.2% | |||||
Amadeus IT Group SA | 246,770 | $ | 19,556,174 | ||
CaixaBank SA | 939,510 | 3,993,963 | |||
Cellnex Telecom SA | 468,210 | 11,932,241 | |||
35,482,378 | |||||
Sweden — 2.7% | |||||
Hexagon AB, B Shares | 318,890 | 17,976,223 | |||
Lundin Petroleum AB | 498,580 | 15,818,699 | |||
Swedbank AB, A Shares | 450,750 | 9,374,879 | |||
43,169,801 | |||||
Switzerland — 5.2% | |||||
Cie Financiere Richemont SA | 206,580 | 18,970,568 | |||
Credit Suisse Group AG(1) | 953,140 | 14,479,267 | |||
Julius Baer Group Ltd.(1) | 269,570 | 15,686,008 | |||
Lonza Group AG(1) | 127,700 | 34,274,283 | |||
83,410,126 | |||||
Taiwan — 0.5% | |||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,055,000 | 7,872,114 | |||
Thailand — 0.5% | |||||
CP ALL PCL | 3,443,500 | 8,686,245 | |||
United Kingdom — 20.8% | |||||
Ashtead Group plc | 286,155 | 8,830,199 | |||
ASOS plc(1) | 188,856 | 16,629,473 | |||
Associated British Foods plc | 334,993 | 11,796,154 | |||
AstraZeneca plc | 327,880 | 23,932,751 | |||
Aviva plc | 1,832,625 | 12,446,639 | |||
B&M European Value Retail SA | 3,007,791 | 16,087,014 | |||
British American Tobacco plc | 222,070 | 11,423,813 | |||
Bunzl plc | 623,060 | 18,969,549 | |||
Carnival plc | 260,880 | 16,691,326 | |||
Coca-Cola HBC AG | 330,700 | 11,300,239 | |||
Compass Group plc | 785,039 | 16,881,924 | |||
Diageo plc | 776,100 | 28,507,231 | |||
Ferguson plc | 254,890 | 19,754,406 | |||
Intertek Group plc | 285,367 | 20,740,027 | |||
Just Eat plc(1) | 730,724 | 8,189,156 | |||
London Stock Exchange Group plc | 495,160 | 29,476,326 | |||
Royal Dutch Shell plc, A Shares | 565,967 | 19,691,871 | |||
Standard Chartered plc | 1,214,390 | 12,185,332 | |||
Tesco plc | 3,472,540 | 11,344,064 | |||
Weir Group plc (The) | 719,850 | 20,974,474 | |||
335,851,968 | |||||
TOTAL COMMON STOCKS (Cost $1,220,378,104) | 1,578,651,486 | ||||
TEMPORARY CASH INVESTMENTS — 2.5% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 8/31/18 - 8/15/44, valued at $22,773,375), in a joint trading account at 1.50%, dated 5/31/18, due 6/1/18 (Delivery value $22,217,163) | 22,216,237 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.75%, 11/15/43, valued at $18,893,728), at 0.74%, dated 5/31/18, due 6/1/18 (Delivery value $18,522,381) | 18,522,000 |
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Shares | Value | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 13,671 | $ | 13,671 | ||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $40,751,908) | 40,751,908 | ||||
TOTAL INVESTMENT SECURITIES — 100.3% (Cost $1,261,130,012) | 1,619,403,394 | ||||
OTHER ASSETS AND LIABILITIES — (0.3)% | (5,349,994 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 1,614,053,400 |
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Consumer Discretionary | 20.4 | % |
Financials | 16.2 | % |
Consumer Staples | 14.7 | % |
Information Technology | 14.5 | % |
Industrials | 13.8 | % |
Materials | 7.2 | % |
Health Care | 7.1 | % |
Energy | 3.2 | % |
Telecommunication Services | 0.7 | % |
Cash and Equivalents* | 2.2 | % |
*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, 2018 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $1,261,130,012) | $ | 1,619,403,394 | |
Foreign currency holdings, at value (cost of $714,086) | 715,924 | ||
Receivable for investments sold | 2,550,140 | ||
Receivable for capital shares sold | 607,346 | ||
Dividends and interest receivable | 5,577,211 | ||
Other assets | 70,572 | ||
1,628,924,587 | |||
Liabilities | |||
Payable for investments purchased | 11,709,685 | ||
Payable for capital shares redeemed | 1,515,751 | ||
Accrued management fees | 1,575,412 | ||
Distribution and service fees payable | 24,399 | ||
Accrued foreign taxes | 45,940 | ||
14,871,187 | |||
Net Assets | $ | 1,614,053,400 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 1,165,864,752 | |
Undistributed net investment income | 4,679,304 | ||
Undistributed net realized gain | 85,302,646 | ||
Net unrealized appreciation | 358,206,698 | ||
$ | 1,614,053,400 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $1,392,820,999 | 101,857,980 | $13.67 | |||
I Class, $0.01 Par Value | $85,516,172 | 6,294,439 | $13.59 | |||
Y Class, $0.01 Par Value | $1,468,025 | 108,003 | $13.59 | |||
A Class, $0.01 Par Value | $77,357,364 | 5,611,337 | $13.79* | |||
C Class, $0.01 Par Value | $7,186,517 | 538,380 | $13.35 | |||
R Class, $0.01 Par Value | $3,916,374 | 281,236 | $13.93 | |||
R5 Class, $0.01 Par Value | $6,280 | 462 | $13.59 | |||
R6 Class, $0.01 Par Value | $45,781,669 | 3,370,499 | $13.58 |
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $1,503,638) | $ | 19,041,210 | |
Interest | 73,343 | ||
19,114,553 | |||
Expenses: | |||
Management fees | 9,109,021 | ||
Distribution and service fees: | |||
A Class | 98,943 | ||
C Class | 34,644 | ||
R Class | 9,439 | ||
Directors' fees and expenses | 21,844 | ||
Other expenses | 83,113 | ||
9,357,004 | |||
Net investment income (loss) | 9,757,549 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions (net of foreign tax expenses paid (refunded) of $(4,073)) | 88,735,972 | ||
Foreign currency translation transactions | (174,687 | ) | |
88,561,285 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $30,766) | (21,555,074 | ) | |
Translation of assets and liabilities in foreign currencies | (67,193 | ) | |
(21,622,267 | ) | ||
Net realized and unrealized gain (loss) | 66,939,018 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 76,696,567 |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2017 | ||||||
Increase (Decrease) in Net Assets | May 31, 2018 | November 30, 2017 | ||||
Operations | ||||||
Net investment income (loss) | $ | 9,757,549 | $ | 12,286,535 | ||
Net realized gain (loss) | 88,561,285 | 125,630,001 | ||||
Change in net unrealized appreciation (depreciation) | (21,622,267 | ) | 280,030,676 | |||
Net increase (decrease) in net assets resulting from operations | 76,696,567 | 417,947,212 | ||||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (12,951,058 | ) | (5,994,029 | ) | ||
I Class | (1,042,199 | ) | (404,902 | ) | ||
Y Class | (603 | ) | — | |||
A Class | (503,450 | ) | (256,085 | ) | ||
R Class | (14,384 | ) | — | |||
R5 Class | (69 | ) | — | |||
R6 Class | (411,521 | ) | (317,212 | ) | ||
From net realized gains: | ||||||
Investor Class | (63,464,599 | ) | — | |||
I Class | (4,065,384 | ) | — | |||
Y Class | (2,251 | ) | — | |||
A Class | (3,582,611 | ) | — | |||
C Class | (324,175 | ) | — | |||
R Class | (166,047 | ) | — | |||
R5 Class | (281 | ) | — | |||
R6 Class | (1,389,681 | ) | — | |||
Decrease in net assets from distributions | (87,918,313 | ) | (6,972,228 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 59,050,049 | (290,117,289 | ) | |||
Redemption Fees | ||||||
Increase in net assets from redemption fees | — | 15,070 | ||||
Net increase (decrease) in net assets | 47,828,303 | 120,872,765 | ||||
Net Assets | ||||||
Beginning of period | 1,566,225,097 | 1,445,352,332 | ||||
End of period | $ | 1,614,053,400 | $ | 1,566,225,097 | ||
Undistributed net investment income | $ | 4,679,304 | $ | 9,845,039 |
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2018 (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, 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 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. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
14
Redemption Fees — Prior to October 9, 2017, the fund may have imposed a 2.00% redemption fee on shares held less than 60 days. The fee was not applicable to all classes. The redemption fee was retained by the fund to help 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. own, in aggregate, 22% 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 non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The 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, 2018 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |
Investor Class | 1.050% to 1.500% | 1.16% |
I Class | 0.850% to 1.300% | 0.96% |
Y Class | 0.700% to 1.150% | 0.81% |
A Class | 1.050% to 1.500% | 1.16% |
C Class | 1.050% to 1.500% | 1.16% |
R Class | 1.050% to 1.500% | 1.16% |
R5 Class | 0.850% to 1.300% | 0.96% |
R6 Class | 0.700% to 1.150% | 0.81% |
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, 2018 are detailed in the Statement of Operations.
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Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $654,949 and $1,354,977, respectively. The effect of interfund transactions on the Statement of Operations was $(189,371) 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, 2018 were $499,738,490 and $547,210,946, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2018 | Year ended November 30, 2017(1) | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 900,000,000 | 900,000,000 | ||||||||
Sold | 3,897,490 | $ | 53,110,581 | 9,241,163 | $ | 110,317,323 | ||||
Issued in reinvestment of distributions | 5,636,074 | 74,377,135 | 552,236 | 5,837,134 | ||||||
Redeemed | (6,032,999 | ) | (82,369,500 | ) | (27,819,284 | ) | (341,059,230 | ) | ||
3,500,565 | 45,118,216 | (18,025,885 | ) | (224,904,773 | ) | |||||
I Class/Shares Authorized | 80,000,000 | 80,000,000 | ||||||||
Sold | 1,429,937 | 19,515,729 | 7,040,337 | 84,877,441 | ||||||
Issued in reinvestment of distributions | 375,314 | 4,920,195 | 38,562 | 404,902 | ||||||
Redeemed | (2,111,864 | ) | (28,392,062 | ) | (6,112,035 | ) | (76,557,575 | ) | ||
(306,613 | ) | (3,956,138 | ) | 966,864 | 8,724,768 | |||||
Y Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 107,367 | 1,462,092 | 436 | 5,000 | ||||||
Issued in reinvestment of distributions | 211 | 2,854 | — | — | ||||||
Redeemed | (11 | ) | (152 | ) | — | — | ||||
107,567 | 1,464,794 | 436 | 5,000 | |||||||
A Class/Shares Authorized | 70,000,000 | 70,000,000 | ||||||||
Sold | 545,080 | 7,533,723 | 853,399 | 10,384,738 | ||||||
Issued in reinvestment of distributions | 301,770 | 4,018,060 | 23,420 | 249,663 | ||||||
Redeemed | (852,808 | ) | (11,744,317 | ) | (5,500,584 | ) | (64,648,352 | ) | ||
(5,958 | ) | (192,534 | ) | (4,623,765 | ) | (54,013,951 | ) | |||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 82,044 | 1,104,110 | 100,907 | 1,269,287 | ||||||
Issued in reinvestment of distributions | 23,686 | 306,426 | — | — | ||||||
Redeemed | (69,680 | ) | (925,376 | ) | (251,483 | ) | (2,905,747 | ) | ||
36,050 | 485,160 | (150,576 | ) | (1,636,460 | ) | |||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 41,153 | 573,561 | 102,324 | 1,268,493 | ||||||
Issued in reinvestment of distributions | 12,462 | 167,835 | — | — | ||||||
Redeemed | (30,181 | ) | (421,640 | ) | (132,853 | ) | (1,636,095 | ) | ||
23,434 | 319,756 | (30,529 | ) | (367,602 | ) | |||||
R5 Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | — | — | 436 | 5,000 | ||||||
Issued in reinvestment of distributions | 26 | 350 | — | — | ||||||
26 | 350 | 436 | 5,000 | |||||||
R6 Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 1,611,267 | 21,500,925 | 1,263,843 | 16,186,454 | ||||||
Issued in reinvestment of distributions | 137,501 | 1,801,202 | 30,211 | 317,212 | ||||||
Redeemed | (549,034 | ) | (7,491,682 | ) | (2,723,909 | ) | (34,432,937 | ) | ||
1,199,734 | 15,810,445 | (1,429,855 | ) | (17,929,271 | ) | |||||
Net increase (decrease) | 4,554,805 | $ | 59,050,049 | (23,292,874 | ) | $ | (290,117,289 | ) |
(1) | April 10, 2017 (commencement of sale) through November 30, 2017 for the Y Class and R5 Class. |
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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 | ||||||||
China | $ | 48,293,333 | $ | 33,581,581 | — | |||
Ireland | 20,788,574 | 34,575,694 | — | |||||
Netherlands | 13,484,678 | 55,936,657 | — | |||||
Russia | 12,530,446 | — | — | |||||
Other Countries | — | 1,359,460,523 | — | |||||
Temporary Cash Investments | 13,671 | 40,738,237 | — | |||||
$ | 95,110,702 | $ | 1,524,292,692 | — |
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 | $ | 1,262,207,696 | |
Gross tax appreciation of investments | $ | 377,632,503 | |
Gross tax depreciation of investments | (20,436,805 | ) | |
Net tax appreciation (depreciation) of investments | $ | 357,195,698 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended 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 | |||||||||||||||
2018(3) | $13.80 | 0.08 | 0.56 | 0.64 | (0.13) | (0.64) | (0.77) | $13.67 | 4.89% | 1.17%(4) | 1.21%(4) | 31% | $1,392,821 | ||
2017 | $10.56 | 0.10 | 3.19 | 3.29 | (0.05) | — | (0.05) | $13.80 | 31.32% | 1.17% | 0.80% | 57% | $1,357,353 | ||
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 | ||
I Class | |||||||||||||||
2018(3) | $13.74 | 0.09 | 0.56 | 0.65 | (0.16) | (0.64) | (0.80) | $13.59 | 5.03% | 0.97%(4) | 1.41%(4) | 31% | $85,516 | ||
2017 | $10.51 | 0.13 | 3.17 | 3.30 | (0.07) | — | (0.07) | $13.74 | 31.64% | 0.97% | 1.00% | 57% | $90,679 | ||
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 | ||
Y Class | |||||||||||||||
2018(3) | $13.75 | 0.11 | 0.55 | 0.66 | (0.18) | (0.64) | (0.82) | $13.59 | 5.04% | 0.82%(4) | 1.56%(4) | 31% | $1,468 | ||
2017(6) | $11.48 | 0.09 | 2.18 | 2.27 | — | — | — | $13.75 | 19.77% | 0.82%(4) | 1.14%(4) | 57%(7) | $6 |
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 | |||||||||||||||
2018(3) | $13.88 | 0.07 | 0.57 | 0.64 | (0.09) | (0.64) | (0.73) | $13.79 | 4.84% | 1.42%(4) | 0.96%(4) | 31% | $77,357 | ||
2017 | $10.63 | 0.06 | 3.22 | 3.28 | (0.03) | — | (0.03) | $13.88 | 30.88% | 1.42% | 0.55% | 57% | $77,983 | ||
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 | ||
C Class | |||||||||||||||
2018(3) | $13.42 | 0.02 | 0.55 | 0.57 | — | (0.64) | (0.64) | $13.35 | 4.43% | 2.17%(4) | 0.21%(4) | 31% | $7,187 | ||
2017 | $10.33 | (0.03) | 3.12 | 3.09 | — | — | — | $13.42 | 29.91% | 2.17% | (0.20)% | 57% | $6,743 | ||
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 | ||
R Class | |||||||||||||||
2018(3) | $14.00 | 0.05 | 0.58 | 0.63 | (0.06) | (0.64) | (0.70) | $13.93 | 4.68% | 1.67%(4) | 0.71%(4) | 31% | $3,916 | ||
2017 | $10.72 | 0.03 | 3.25 | 3.28 | — | — | — | $14.00 | 30.60% | 1.67% | 0.30% | 57% | $3,609 | ||
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 |
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 | |||||||||||||||
2018(3) | $13.73 | 0.09 | 0.57 | 0.66 | (0.16) | (0.64) | (0.80) | $13.59 | 5.04% | 0.97%(4) | 1.41%(4) | 31% | $6 | ||
2017(6) | $11.48 | 0.08 | 2.17 | 2.25 | — | — | — | $13.73 | 19.60% | 0.97%(4) | 0.99%(4) | 57%(7) | $6 | ||
R6 Class | |||||||||||||||
2018(3) | $13.75 | 0.13 | 0.53 | 0.66 | (0.19) | (0.64) | (0.83) | $13.58 | 5.07% | 0.82%(4) | 1.56%(4) | 31% | $45,782 | ||
2017 | $10.53 | 0.15 | 3.16 | 3.31 | (0.09) | — | (0.09) | $13.75 | 31.68% | 0.82% | 1.15% | 57% | $29,846 | ||
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(8) | $12.56 | 0.01 | 1.17 | 1.18 | — | — | — | $13.74 | 9.39% | 0.85%(4) | 0.20%(4) | 110%(9) | $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, 2018 (unaudited). |
(4) | Annualized. |
(5) | Per-share amount was less than $0.005. |
(6) | April 10, 2017 (commencement of sale) through November 30, 2017. |
(7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2017. |
(8) | July 26, 2013 (commencement of sale) through November 30, 2013. |
(9) | 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 retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
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 |
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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. | ||
©2018 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92630 1807 |
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Semiannual Report | |
May 31, 2018 | |
International Opportunities Fund | |
Investor Class (AIOIX) | |
I Class (ACIOX) | |
A Class (AIVOX) | |
C Class (AIOCX) | |
R Class (AIORX) |
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/0000872825-18-000059/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the six months ended May 31, 2018. 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.
Volatility’s Rise Restrains Returns
Global stocks continued to rally early in the reporting period, bolstered by improving growth trends throughout the world, positive corporate earnings results, generally muted inflation, and still-low interest rates. For example, U.S. stocks were notably strong, with the S&P 500 Index gaining nearly 8% for the two months ended January 31, 2018. Outside the U.S., returns were similarly robust, as central bank accommodations enhanced the positive economic and earnings backdrop.
Sentiment changed swiftly and sharply in early February. U.S. stocks plunged after the U.S. Department of Labor announced wages grew at their fastest year-over-year pace in nine years. This news, coupled with other positive economic data and rising inflation expectations, pushed interest rates higher and triggered fears that the Federal Reserve (the Fed) would ramp up its rate-hike campaign. In addition, the U.S. announced a series of tariffs that sparked fears of a global trade war. However, by the end of the reporting period, U.S. market volatility subsided somewhat. U.S. economic and inflation data and the Fed’s rate-hike strategy were generally aligned with investor expectations, while trade concerns eased. But outside the U.S., stocks continued to stumble on slowing growth in Europe, political uncertainty in Italy, and a resurgence in the U.S. dollar. For the six-month period overall, U.S. stocks advanced modestly, but non-U.S. stocks were generally flat. Meanwhile, U.S. bond returns declined as interest rates and inflation increased. Non-U.S. bonds also declined, but only fractionally.
In this environment of heightened global market volatility, improving global growth, and differing central bank strategies, investors likely will face new opportunities and challenges in the months ahead. We believe this scenario warrants a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2018 | |
Top Ten Holdings | % of net assets |
BRP, Inc. | 1.6% |
Melco International Development Ltd. | 1.6% |
Rubis SCA | 1.4% |
Baozun, Inc. ADR | 1.4% |
Parex Resources, Inc. | 1.3% |
Intermediate Capital Group plc | 1.3% |
China Resources Cement Holdings Ltd. | 1.2% |
ASR Nederland NV | 1.2% |
WNS Holdings Ltd. ADR | 1.2% |
iShares MSCI EAFE Small-Cap ETF | 1.2% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 96.8% |
Exchange-Traded Funds | 1.2% |
Total Equity Exposure | 98.0% |
Temporary Cash Investments | 2.8% |
Other Assets and Liabilities | (0.8)% |
Investments by Country | % of net assets |
Japan | 18.9% |
United Kingdom | 11.3% |
China | 8.0% |
Canada | 7.2% |
France | 6.2% |
Germany | 5.7% |
Spain | 3.7% |
South Korea | 3.5% |
Netherlands | 3.3% |
Italy | 3.2% |
Australia | 3.0% |
Taiwan | 2.7% |
India | 2.7% |
Switzerland | 2.5% |
Denmark | 2.2% |
Hong Kong | 2.0% |
Other Countries | 10.7% |
Exchange-Traded Funds | 1.2% |
Cash and Equivalents* | 2.0% |
* 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, 2017 to May 31, 2018.
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 12/1/17 | Ending Account Value 5/31/18 | Expenses Paid During Period(1) 12/1/17 - 5/31/18 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,063.00 | $7.56 | 1.47% |
I Class | $1,000 | $1,063.70 | $6.53 | 1.27% |
A Class | $1,000 | $1,061.70 | $8.84 | 1.72% |
C Class | $1,000 | $1,057.10 | $12.67 | 2.47% |
R Class | $1,000 | $1,060.30 | $10.12 | 1.97% |
Hypothetical | ||||
Investor Class | $1,000 | $1,017.60 | $7.39 | 1.47% |
I Class | $1,000 | $1,018.60 | $6.39 | 1.27% |
A Class | $1,000 | $1,016.36 | $8.65 | 1.72% |
C Class | $1,000 | $1,012.62 | $12.39 | 2.47% |
R Class | $1,000 | $1,015.11 | $9.90 | 1.97% |
(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. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
5
Schedule of Investments |
MAY 31, 2018 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 96.8% | |||||
Australia — 3.0% | |||||
ALS Ltd. | 221,874 | $ | 1,252,501 | ||
Kogan.com Ltd. | 237,877 | 1,626,217 | |||
NEXTDC Ltd.(1) | 510,280 | 2,874,477 | |||
Northern Star Resources Ltd. | 341,820 | 1,614,834 | |||
7,368,029 | |||||
Austria — 1.3% | |||||
FACC AG(1) | 68,277 | 1,311,316 | |||
Schoeller-Bleckmann Oilfield Equipment AG | 15,427 | 1,934,782 | |||
3,246,098 | |||||
Belgium — 0.7% | |||||
Galapagos NV(1) | 16,960 | 1,718,156 | |||
Brazil — 1.1% | |||||
CVC Brasil Operadora e Agencia de Viagens SA | 45,400 | 620,544 | |||
Magazine Luiza SA | 73,604 | 2,130,021 | |||
2,750,565 | |||||
Canada — 7.2% | |||||
Arizona Mining, Inc.(1) | 412,679 | 1,314,487 | |||
BRP, Inc. | 85,333 | 3,975,099 | |||
Descartes Systems Group, Inc. (The)(1) | 41,805 | 1,247,444 | |||
FirstService Corp. | 12,332 | 867,786 | |||
Interfor Corp.(1) | 136,988 | 2,724,757 | |||
Kirkland Lake Gold Ltd. | 122,548 | 2,253,235 | |||
Parex Resources, Inc.(1) | 175,673 | 3,171,761 | |||
Premium Brands Holdings Corp. | 23,555 | 2,108,069 | |||
17,662,638 | |||||
China — 8.0% | |||||
Baozun, Inc. ADR(1) | 56,935 | 3,490,685 | |||
China Resources Cement Holdings Ltd. | 2,634,000 | 3,081,006 | |||
Chinasoft International Ltd. | 2,480,000 | 2,080,839 | |||
GDS Holdings Ltd. ADR(1) | 73,682 | 2,785,916 | |||
GreenTree Hospitality Group Ltd. ADR(1) | 43,187 | 808,461 | |||
Li Ning Co. Ltd.(1) | 1,730,500 | 2,067,343 | |||
Lonking Holdings Ltd. | 3,960,000 | 1,974,113 | |||
O-Net Technologies Group Ltd.(1) | 962,000 | 611,488 | |||
Wisdom Education International Holdings Co. Ltd. | 3,338,000 | 2,903,265 | |||
19,803,116 | |||||
Denmark — 2.2% | |||||
Ambu A/S, B Shares | 88,198 | 2,655,540 | |||
Royal Unibrew A/S | 8,842 | 635,217 | |||
Topdanmark A/S | 47,148 | 2,116,260 | |||
5,407,017 | |||||
Finland — 0.6% | |||||
Outotec Oyj(1) | 151,127 | 1,412,900 | |||
France — 6.2% | |||||
Euronext NV | 18,699 | 1,196,729 |
6
Shares | Value | ||||
Rubis SCA | 50,127 | $ | 3,530,745 | ||
SOITEC(1) | 19,917 | 1,841,096 | |||
Solutions 30 SE(1) | 46,011 | 2,165,907 | |||
Teleperformance | 15,092 | 2,385,476 | |||
Trigano SA | 8,363 | 1,674,460 | |||
Worldline SA(1) | 41,485 | 2,394,049 | |||
15,188,462 | |||||
Germany — 5.7% | |||||
AIXTRON SE(1) | 94,948 | 1,424,516 | |||
AURELIUS Equity Opportunities SE & Co. KGaA | 21,527 | 1,435,598 | |||
Carl Zeiss Meditec AG | 28,455 | 1,966,271 | |||
Jungheinrich AG Preference Shares | 45,449 | 1,777,347 | |||
MorphoSys AG(1) | 27,271 | 2,841,889 | |||
Rheinmetall AG | 22,123 | 2,823,680 | |||
Scout24 AG | 35,609 | 1,825,133 | |||
14,094,434 | |||||
Hong Kong — 2.0% | |||||
Health and Happiness H&H International Holdings Ltd.(1) | 130,500 | 1,024,739 | |||
Melco International Development Ltd. | 1,079,000 | 3,892,286 | |||
4,917,025 | |||||
India — 2.7% | |||||
Dewan Housing Finance Corp. Ltd. | 169,154 | 1,527,039 | |||
Future Retail Ltd.(1) | 170,129 | 1,480,847 | |||
Satin Creditcare Network Ltd.(1) | 124,941 | 732,075 | |||
Vakrangee Ltd. | 120,179 | 57,859 | |||
WNS Holdings Ltd. ADR(1) | 57,072 | 2,918,662 | |||
6,716,482 | |||||
Indonesia — 0.7% | |||||
Bank Tabungan Negara Persero Tbk PT | 7,440,700 | 1,630,024 | |||
Italy — 3.2% | |||||
Amplifon SpA | 117,377 | 2,133,694 | |||
Biesse SpA | 19,907 | 884,218 | |||
FinecoBank Banca Fineco SpA | 96,728 | 965,789 | |||
Gima TT SpA | 44,173 | 816,001 | |||
IMA Industria Macchine Automatiche SpA | 10,792 | 1,049,014 | |||
Moncler SpA | 43,229 | 1,994,489 | |||
7,843,205 | |||||
Japan — 18.9% | |||||
Anritsu Corp. | 198,800 | 2,648,816 | |||
Denka Co. Ltd. | 64,100 | 2,341,885 | |||
Fancl Corp. | 62,300 | 2,864,239 | |||
GMO Payment Gateway, Inc. | 21,300 | 2,264,585 | |||
Ichikoh Industries Ltd. | 163,500 | 2,160,072 | |||
KH Neochem Co. Ltd. | 64,100 | 1,724,194 | |||
Maruwa Co. Ltd. | 23,300 | 1,851,592 | |||
Nihon Kohden Corp. | 73,200 | 2,027,918 | |||
Nihon M&A Center, Inc. | 49,400 | 1,615,904 | |||
Outsourcing, Inc. | 116,600 | 2,216,160 | |||
Pigeon Corp. | 54,600 | 2,671,304 | |||
Pressance Corp. | 123,100 | 1,982,982 | |||
Rohto Pharmaceutical Co. Ltd. | 88,500 | 2,833,649 |
7
Shares | Value | ||||
Sakata Seed Corp. | 34,000 | $ | 1,274,861 | ||
Sanwa Holdings Corp. | 34,800 | 379,021 | |||
Seed Co. Ltd. | 24,000 | 1,621,752 | |||
Seino Holdings Co. Ltd. | 122,900 | 2,307,074 | |||
SHO-BOND Holdings Co. Ltd. | 31,900 | 2,135,425 | |||
Systena Corp. | 148,000 | 1,661,605 | |||
Tateru, Inc. | 120,100 | 2,342,592 | |||
Trust Tech, Inc. | 41,400 | 1,235,078 | |||
Tsubaki Nakashima Co. Ltd. | 66,000 | 1,641,583 | |||
V Technology Co. Ltd. | 6,900 | 1,566,542 | |||
Zenkoku Hosho Co. Ltd. | 26,300 | 1,262,948 | |||
46,631,781 | |||||
Malaysia — 0.3% | |||||
My EG Services Bhd | 3,132,800 | 697,634 | |||
Mexico — 0.5% | |||||
Alpek SAB de CV | 811,453 | 1,209,979 | |||
Netherlands — 3.3% | |||||
AMG Advanced Metallurgical Group NV | 43,186 | 2,475,404 | |||
ASR Nederland NV | 70,009 | 2,968,710 | |||
InterXion Holding NV(1) | 43,030 | 2,747,896 | |||
8,192,010 | |||||
New Zealand — 0.8% | |||||
a2 Milk Co. Ltd.(1) | 255,678 | 1,908,759 | |||
Norway — 1.7% | |||||
Aker BP ASA | 51,230 | 1,865,055 | |||
Petroleum Geo-Services ASA(1) | 485,497 | 2,327,305 | |||
4,192,360 | |||||
Portugal — 0.2% | |||||
Banco Comercial Portugues SA, R Shares(1) | 1,649,102 | 483,080 | |||
Singapore — 0.9% | |||||
Venture Corp. Ltd. | 149,300 | 2,337,718 | |||
South Korea — 3.5% | |||||
Cafe24 Corp.(1) | 17,693 | 2,820,304 | |||
Dentium Co. Ltd. | 16,976 | 1,380,007 | |||
Finetex EnE, Inc.(1) | 174,649 | 406,021 | |||
Hotel Shilla Co. Ltd. | 25,077 | 2,871,936 | |||
Modetour Network, Inc. | 37,896 | 1,180,065 | |||
8,658,333 | |||||
Spain — 3.7% | |||||
Ence Energia y Celulosa SA | 298,616 | 2,345,748 | |||
Inmobiliaria Colonial Socimi SA | 172,246 | 1,835,354 | |||
Masmovil Ibercom SA(1) | 9,367 | 1,289,036 | |||
NH Hotel Group SA | 305,170 | 2,291,318 | |||
Talgo SA | 226,480 | 1,342,478 | |||
9,103,934 | |||||
Sweden — 1.5% | |||||
Catena Media plc(1) | 78,020 | 1,229,850 | |||
Elekta AB, B Shares | 114,001 | 1,389,915 | |||
SSAB AB, A Shares | 221,896 | 1,193,971 | |||
3,813,736 |
8
Shares | Value | ||||
Switzerland — 2.5% | |||||
Georg Fischer AG | 1,967 | $ | 2,539,007 | ||
Idorsia Ltd.(1) | 54,024 | 1,309,759 | |||
Tecan Group AG | 10,044 | 2,379,805 | |||
6,228,571 | |||||
Taiwan — 2.7% | |||||
Airtac International Group | 37,345 | 639,005 | |||
Chailease Holding Co. Ltd. | 680,000 | 2,417,393 | |||
Eclat Textile Co. Ltd. | 152,000 | 1,851,645 | |||
TCI Co. Ltd. | 142,000 | 1,851,547 | |||
6,759,590 | |||||
Thailand — 0.4% | |||||
Beauty Community PCL | 1,865,600 | 1,017,442 | |||
United Kingdom — 11.3% | |||||
Abcam plc | 89,146 | 1,437,877 | |||
Aveva Group plc | 61,034 | 1,926,286 | |||
Beazley plc | 267,262 | 2,124,769 | |||
Bellway plc | 48,201 | 2,104,098 | |||
Burford Capital Ltd. | 133,537 | 2,826,369 | |||
Dechra Pharmaceuticals plc | 41,928 | 1,552,508 | |||
Fevertree Drinks plc | 48,516 | 1,937,628 | |||
IG Group Holdings plc | 148,009 | 1,701,143 | |||
Intermediate Capital Group plc | 203,263 | 3,090,692 | |||
KAZ Minerals plc(1) | 171,704 | 2,313,019 | |||
Rentokil Initial plc | 573,707 | 2,613,592 | |||
Rotork plc | 570,982 | 2,532,969 | |||
SSP Group plc | 215,618 | 1,848,840 | |||
28,009,790 | |||||
TOTAL COMMON STOCKS (Cost $192,024,669) | 239,002,868 | ||||
EXCHANGE-TRADED FUNDS — 1.2% | |||||
iShares MSCI EAFE Small-Cap ETF (Cost $2,955,690) | 44,753 | 2,908,050 | |||
TEMPORARY CASH INVESTMENTS — 2.8% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 08/31/18 - 8/15/44, valued at $3,836,733), in a joint trading account at 1.50%, dated 5/31/18, due 6/1/18 (Delivery value $3,743,025) | 3,742,869 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.75%, 11/15/43, valued at $3,184,846), at 0.74%, dated 5/31/18, due 6/1/18 (Delivery value $3,120,064) | 3,120,000 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 2,738 | 2,738 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $6,865,607) | 6,865,607 | ||||
TOTAL INVESTMENT SECURITIES — 100.8% (Cost $201,845,966) | 248,776,525 | ||||
OTHER ASSETS AND LIABILITIES — (0.8)% | (1,905,097 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 246,871,428 |
9
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Information Technology | 19.1 | % |
Consumer Discretionary | 15.8 | % |
Industrials | 15.3 | % |
Health Care | 11.0 | % |
Financials | 10.7 | % |
Materials | 9.9 | % |
Consumer Staples | 7.3 | % |
Energy | 3.8 | % |
Real Estate | 2.0 | % |
Utilities | 1.4 | % |
Telecommunication Services | 0.5 | % |
Exchange-Traded Funds | 1.2 | % |
Cash and Equivalents* | 2.0 | % |
* 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.
10
Statement of Assets and Liabilities |
MAY 31, 2018 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $201,845,966) | $ | 248,776,525 | |
Foreign currency holdings, at value (cost of $391,711) | 391,707 | ||
Receivable for investments sold | 3,282,665 | ||
Receivable for capital shares sold | 142,685 | ||
Dividends and interest receivable | 433,692 | ||
Other assets | 53,195 | ||
253,080,469 | |||
Liabilities | |||
Payable for investments purchased | 5,569,650 | ||
Payable for capital shares redeemed | 338,973 | ||
Accrued management fees | 294,795 | ||
Distribution and service fees payable | 5,623 | ||
6,209,041 | |||
Net Assets | $ | 246,871,428 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 187,173,928 | |
Distributions in excess of net investment income | (140,183 | ) | |
Undistributed net realized gain | 12,938,947 | ||
Net unrealized appreciation | 46,898,736 | ||
$ | 246,871,428 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $179,787,932 | 15,588,408 | $11.53 | |||
I Class, $0.01 Par Value | $50,108,281 | 4,299,282 | $11.66 | |||
A Class, $0.01 Par Value | $13,030,734 | 1,139,044 | $11.44* | |||
C Class, $0.01 Par Value | $2,596,964 | 235,824 | $11.01 | |||
R Class, $0.01 Par Value | $1,347,517 | 118,892 | $11.33 |
*Maximum offering price $12.14 (net asset value divided by 0.9425).
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $192,139) | $ | 2,185,639 | |
Interest | 17,180 | ||
2,202,819 | |||
Expenses: | |||
Management fees | 1,851,712 | ||
Distribution and service fees: | |||
A Class | 16,628 | ||
C Class | 12,026 | ||
R Class | 2,746 | ||
Directors' fees and expenses | 3,014 | ||
Other expenses | 5,606 | ||
1,891,732 | |||
Fees waived(1) | (226,798 | ) | |
1,664,934 | |||
Net investment income (loss) | 537,885 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 13,503,819 | ||
Foreign currency translation transactions | (70,168 | ) | |
13,433,651 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $133,236) | (1,736,539 | ) | |
Translation of assets and liabilities in foreign currencies | (23,727 | ) | |
(1,760,266 | ) | ||
Net realized and unrealized gain (loss) | 11,673,385 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 12,211,270 |
(1) | Amount consists of $178,092, $31,900, $13,303, $2,405 and $1,098 for Investor Class, I Class, A Class, C Class and R Class, respectively. |
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2017 | ||||||
Increase (Decrease) in Net Assets | May 31, 2018 | November 30, 2017 | ||||
Operations | ||||||
Net investment income (loss) | $ | 537,885 | $ | (214,314 | ) | |
Net realized gain (loss) | 13,433,651 | 19,289,221 | ||||
Change in net unrealized appreciation (depreciation) | (1,760,266 | ) | 33,851,197 | |||
Net increase (decrease) in net assets resulting from operations | 12,211,270 | 52,926,104 | ||||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (849,675 | ) | (41,869 | ) | ||
I Class | (79,845 | ) | (15,442 | ) | ||
A Class | (32,673 | ) | — | |||
R Class | (41 | ) | — | |||
From net realized gains: | ||||||
Investor Class | (14,799,211 | ) | — | |||
I Class | (1,247,580 | ) | — | |||
A Class | (1,133,432 | ) | — | |||
C Class | (206,063 | ) | — | |||
R Class | (86,513 | ) | — | |||
Decrease in net assets from distributions | (18,435,033 | ) | (57,311 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 62,778,962 | 6,185,364 | ||||
Redemption Fees | ||||||
Increase in net assets from redemption fees | — | 11,161 | ||||
Net increase (decrease) in net assets | 56,555,199 | 59,065,318 | ||||
Net Assets | ||||||
Beginning of period | 190,316,229 | 131,250,911 | ||||
End of period | $ | 246,871,428 | $ | 190,316,229 | ||
Undistributed (distributions in excess of) net investment income | $ | (140,183 | ) | $ | 284,166 |
See Notes to Financial Statements.
13
Notes to Financial Statements |
MAY 31, 2018 (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, 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
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. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
15
Redemption Fees — Prior to October 9, 2017, the fund may have imposed a 2.00% redemption fee on shares held less than 60 days. The fee was not applicable to all classes. The redemption fee was retained by the fund to help 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 non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The 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, 2018, 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, 2019 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, 2018 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | ||
Before Waiver | After Waiver | ||
Investor Class | 1.400% to 2.000% | 1.66% | 1.46% |
I Class | 1.200% to 1.800% | 1.46% | 1.26% |
A Class | 1.400% to 2.000% | 1.66% | 1.46% |
C Class | 1.400% to 2.000% | 1.66% | 1.46% |
R Class | 1.400% to 2.000% | 1.66% | 1.46% |
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, 2018 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.
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Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund sales were $175,701 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $86,993 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, 2018 were $187,198,675 and $146,332,346, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2018 | Year ended November 30, 2017 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 120,000,000 | 120,000,000 | ||||||||
Sold | 3,954,897 | $ | 45,814,228 | 4,116,295 | $ | 42,533,004 | ||||
Issued in reinvestment of distributions | 1,361,694 | 15,058,840 | 4,880 | 40,599 | ||||||
Redeemed | (3,422,051 | ) | (39,250,341 | ) | (3,173,740 | ) | (31,170,405 | ) | ||
1,894,540 | 21,622,727 | 947,435 | 11,403,198 | |||||||
I Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 3,875,962 | 45,181,370 | 853,290 | 8,851,517 | ||||||
Issued in reinvestment of distributions | 116,500 | 1,312,375 | 1,838 | 15,442 | ||||||
Redeemed | (565,401 | ) | (6,561,074 | ) | (760,870 | ) | (8,148,776 | ) | ||
3,427,061 | 39,932,671 | 94,258 | 718,183 | |||||||
A Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||
Sold | 330,074 | 3,794,635 | 406,592 | 3,848,170 | ||||||
Issued in reinvestment of distributions | 105,230 | 1,155,579 | — | — | ||||||
Redeemed | (382,200 | ) | (4,393,704 | ) | (999,803 | ) | (10,089,192 | ) | ||
53,104 | 556,510 | (593,211 | ) | (6,241,022 | ) | |||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 64,744 | 712,457 | 84,620 | 901,605 | ||||||
Issued in reinvestment of distributions | 18,225 | 193,355 | — | — | ||||||
Redeemed | (61,461 | ) | (678,032 | ) | (62,567 | ) | (612,643 | ) | ||
21,508 | 227,780 | 22,053 | 288,962 | |||||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 40,868 | 467,102 | 18,549 | 185,040 | ||||||
Issued in reinvestment of distributions | 7,945 | 86,554 | — | — | ||||||
Redeemed | (10,047 | ) | (114,382 | ) | (17,071 | ) | (168,997 | ) | ||
38,766 | 439,274 | 1,478 | 16,043 | |||||||
Net increase (decrease) | 5,434,979 | $ | 62,778,962 | 472,013 | $ | 6,185,364 |
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. |
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• | 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 | ||||||||
China | $ | 7,085,062 | $ | 12,718,054 | — | |||
India | 2,918,662 | 3,797,820 | — | |||||
Netherlands | 2,747,896 | 5,444,114 | — | |||||
Other Countries | — | 204,291,260 | — | |||||
Exchange-Traded Funds | 2,908,050 | — | — | |||||
Temporary Cash Investments | 2,738 | 6,862,869 | — | |||||
$ | 15,662,408 | $ | 233,114,117 | — |
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 | $ | 202,528,153 | |
Gross tax appreciation of investments | $ | 51,406,958 | |
Gross tax depreciation of investments | (5,158,586 | ) | |
Net tax appreciation (depreciation) of investments | $ | 46,248,372 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended 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 | |||||||||||||||||
2018(3) | $11.94 | 0.02 | 0.68 | 0.70 | (0.06) | (1.05) | (1.11) | $11.53 | 6.30% | 1.47%(4) | 1.67%(4) | 0.47%(4) | 0.27%(4) | 66% | $179,788 | ||
2017 | $8.49 | (0.01) | 3.46 | 3.45 | —(5) | — | —(5) | $11.94 | 40.69% | 1.53% | 1.73% | (0.11)% | (0.31)% | 124% | $163,540 | ||
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 | —(5) | 2.14 | 2.14 | (0.08) | — | (0.08) | $9.20 | 30.13% | 1.72% | 1.79% | (0.04)% | (0.11)% | 123% | $137,264 | ||
I Class | |||||||||||||||||
2018(3) | $12.07 | 0.06 | 0.66 | 0.72 | (0.08) | (1.05) | (1.13) | $11.66 | 6.37% | 1.27%(4) | 1.47%(4) | 0.67%(4) | 0.47%(4) | 66% | $50,108 | ||
2017 | $8.58 | 0.02 | 3.49 | 3.51 | (0.02) | — | (0.02) | $12.07 | 41.01% | 1.33% | 1.53% | 0.09% | (0.11)% | 124% | $10,529 | ||
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 |
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 | |||||||||||||||||
2018(3) | $11.84 | 0.01 | 0.67 | 0.68 | (0.03) | (1.05) | (1.08) | $11.44 | 6.17% | 1.72%(4) | 1.92%(4) | 0.22%(4) | 0.02%(4) | 66% | $13,031 | ||
2017 | $8.43 | (0.03) | 3.44 | 3.41 | — | — | — | $11.84 | 40.45% | 1.78% | 1.98% | (0.36)% | (0.56)% | 124% | $12,855 | ||
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 | ||
C Class | |||||||||||||||||
2018(3) | $11.44 | (0.03) | 0.65 | 0.62 | — | (1.05) | (1.05) | $11.01 | 5.71% | 2.47%(4) | 2.67%(4) | (0.53)%(4) | (0.73)%(4) | 66% | $2,597 | ||
2017 | $8.21 | (0.11) | 3.34 | 3.23 | — | — | — | $11.44 | 39.46% | 2.53% | 2.73% | (1.11)% | (1.31)% | 124% | $2,453 | ||
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 | —(5) | (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 |
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 | |||||||||||||||||
2018(3) | $11.72 | —(5) | 0.66 | 0.66 | —(5) | (1.05) | (1.05) | $11.33 | 6.03% | 1.97%(4) | 2.17%(4) | (0.03)%(4) | (0.23)%(4) | 66% | $1,348 | ||
2017 | $8.37 | (0.06) | 3.41 | 3.35 | — | — | — | $11.72 | 40.02% | 2.03% | 2.23% | (0.61)% | (0.81)% | 124% | $939 | ||
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 |
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, 2018 (unaudited). |
(4) | Annualized. |
(5) | Per-share amount was less than $0.005. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
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. | ||
©2018 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92635 1807 |
![acihorizblkd26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/acihorizblkd26.jpg)
Semiannual Report | |
May 31, 2018 | |
International Value Fund | |
Investor Class (ACEVX) | |
I Class (ACVUX) | |
A Class (MEQAX) | |
C Class (ACCOX) | |
R Class (ACVRX) | |
R6 Class (ACVDX) |
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/0000872825-18-000059/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the six months ended May 31, 2018. 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.
Volatility’s Rise Restrains Returns
Global stocks continued to rally early in the reporting period, bolstered by improving growth trends throughout the world, positive corporate earnings results, generally muted inflation, and still-low interest rates. For example, U.S. stocks were notably strong, with the S&P 500 Index gaining nearly 8% for the two months ended January 31, 2018. Outside the U.S., returns were similarly robust, as central bank accommodations enhanced the positive economic and earnings backdrop.
Sentiment changed swiftly and sharply in early February. U.S. stocks plunged after the U.S. Department of Labor announced wages grew at their fastest year-over-year pace in nine years. This news, coupled with other positive economic data and rising inflation expectations, pushed interest rates higher and triggered fears that the Federal Reserve (the Fed) would ramp up its rate-hike campaign. In addition, the U.S. announced a series of tariffs that sparked fears of a global trade war. However, by the end of the reporting period, U.S. market volatility subsided somewhat. U.S. economic and inflation data and the Fed’s rate-hike strategy were generally aligned with investor expectations, while trade concerns eased. But outside the U.S., stocks continued to stumble on slowing growth in Europe, political uncertainty in Italy, and a resurgence in the U.S. dollar. For the six-month period overall, U.S. stocks advanced modestly, but non-U.S. stocks were generally flat. Meanwhile, U.S. bond returns declined as interest rates and inflation increased. Non-U.S. bonds also declined, but only fractionally.
In this environment of heightened global market volatility, improving global growth, and differing central bank strategies, investors likely will face new opportunities and challenges in the months ahead. We believe this scenario warrants a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2018 | |
Top Ten Holdings | % of net assets |
Royal Dutch Shell plc, B Shares | 3.9% |
HSBC Holdings plc | 2.5% |
GlaxoSmithKline plc | 2.2% |
Rio Tinto plc | 1.8% |
Toyota Motor Corp. | 1.7% |
BNP Paribas SA | 1.6% |
Novartis AG | 1.6% |
TOTAL SA | 1.5% |
iShares MSCI EAFE Value ETF | 1.4% |
ING Groep NV | 1.4% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 95.0% |
Exchange-Traded Funds | 2.9% |
Total Equity Exposure | 97.9% |
Temporary Cash Investments | 1.3% |
Other Assets and Liabilities | 0.8% |
Investments by Country | % of net assets |
Japan | 22.9% |
United Kingdom | 22.4% |
France | 7.5% |
Germany | 5.6% |
Switzerland | 4.8% |
Spain | 4.6% |
Italy | 3.6% |
Australia | 3.1% |
Netherlands | 3.1% |
Norway | 2.5% |
Singapore | 2.2% |
Hong Kong | 2.1% |
Other Countries | 10.6% |
Exchange-Traded Funds* | 2.9% |
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. |
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, 2017 to May 31, 2018.
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 12/1/17 | Ending Account Value 5/31/18 | Expenses Paid During Period(1) 12/1/17 - 5/31/18 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $983.60 | $6.48 | 1.31% |
I Class | $1,000 | $984.50 | $5.49 | 1.11% |
A Class | $1,000 | $981.20 | $7.71 | 1.56% |
C Class | $1,000 | $978.00 | $11.39 | 2.31% |
R Class | $1,000 | $980.80 | $8.94 | 1.81% |
R6 Class | $1,000 | $984.90 | $4.75 | 0.96% |
Hypothetical | ||||
Investor Class | $1,000 | $1,018.40 | $6.59 | 1.31% |
I Class | $1,000 | $1,019.40 | $5.59 | 1.11% |
A Class | $1,000 | $1,017.15 | $7.85 | 1.56% |
C Class | $1,000 | $1,013.41 | $11.60 | 2.31% |
R Class | $1,000 | $1,015.91 | $9.10 | 1.81% |
R6 Class | $1,000 | $1,020.15 | $4.84 | 0.96% |
(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. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
5
Schedule of Investments |
MAY 31, 2018 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 95.0% | |||||
Australia — 3.1% | |||||
Aristocrat Leisure Ltd. | 4,652 | $ | 105,333 | ||
Australia & New Zealand Banking Group Ltd. | 35,724 | 733,003 | |||
CIMIC Group Ltd. | 2,843 | 88,301 | |||
Commonwealth Bank of Australia | 8,765 | 458,692 | |||
Qantas Airways Ltd. | 70,021 | 335,388 | |||
Regis Resources Ltd. | 20,826 | 74,328 | |||
South32 Ltd. | 30,527 | 85,509 | |||
Wesfarmers Ltd. | 7,384 | 253,723 | |||
Westpac Banking Corp. | 10,459 | 219,594 | |||
Whitehaven Coal Ltd. | 36,875 | 145,999 | |||
2,499,870 | |||||
Austria — 1.1% | |||||
Erste Group Bank AG | 7,602 | 314,751 | |||
OMV AG | 7,623 | 434,431 | |||
Raiffeisen Bank International AG(1) | 3,883 | 121,598 | |||
870,780 | |||||
Belgium — 0.5% | |||||
KBC Group NV | 5,112 | 395,662 | |||
Brazil — 0.5% | |||||
Banco Santander Brasil SA ADR | 10,100 | 90,395 | |||
Petroleo Brasileiro SA ADR(1) | 31,500 | 321,300 | |||
411,695 | |||||
China — 1.5% | |||||
China Construction Bank Corp., H Shares | 477,000 | 480,447 | |||
China Huarong Asset Management Co. Ltd., H Shares | 379,000 | 126,934 | |||
Industrial & Commercial Bank of China Ltd., H Shares | 378,000 | 310,971 | |||
Ping An Insurance Group Co. of China Ltd., H Shares | 14,000 | 136,230 | |||
Tencent Holdings Ltd. | 3,500 | 176,427 | |||
1,231,009 | |||||
Denmark — 0.6% | |||||
H Lundbeck A/S | 5,022 | 354,415 | |||
Topdanmark A/S | 2,399 | 107,680 | |||
462,095 | |||||
Finland — 1.5% | |||||
UPM-Kymmene Oyj | 25,185 | 924,887 | |||
Valmet Oyj | 13,205 | 243,320 | |||
1,168,207 | |||||
France — 7.5% | |||||
BNP Paribas SA | 20,094 | 1,252,856 | |||
CNP Assurances | 24,137 | 564,201 | |||
Eiffage SA | 3,719 | 418,569 | |||
Engie SA | 25,720 | 409,176 | |||
Eutelsat Communications SA | 12,437 | 239,844 | |||
Metropole Television SA | 5,170 | 109,335 | |||
Orange SA | 24,260 | 416,990 |
6
Shares | Value | ||||
Peugeot SA | 12,359 | $ | 289,373 | ||
Sanofi | 5,312 | 407,508 | |||
Societe Generale SA | 11,330 | 490,200 | |||
TOTAL SA | 20,231 | 1,229,524 | |||
Veolia Environnement SA | 6,363 | 145,115 | |||
5,972,691 | |||||
Germany — 5.6% | |||||
Allianz SE | 3,158 | 651,597 | |||
BASF SE | 4,973 | 490,112 | |||
Covestro AG | 6,766 | 617,055 | |||
Daimler AG | 3,218 | 232,143 | |||
Deutsche Lufthansa AG | 12,624 | 343,306 | |||
Deutsche Telekom AG | 14,812 | 228,968 | |||
Hamburger Hafen und Logistik AG | 3,126 | 76,136 | |||
HUGO BOSS AG | 2,517 | 226,311 | |||
ProSiebenSat.1 Media SE | 9,830 | 289,286 | |||
Rheinmetall AG | 1,557 | 198,729 | |||
Schaeffler AG Preference Shares | 33,603 | 503,369 | |||
Siemens AG | 3,836 | 500,332 | |||
Vonovia SE | 1,917 | 90,490 | |||
4,447,834 | |||||
Hong Kong — 2.1% | |||||
Health and Happiness H&H International Holdings Ltd.(1) | 9,000 | 70,672 | |||
Kerry Properties Ltd. | 51,000 | 272,514 | |||
PCCW Ltd. | 551,000 | 324,375 | |||
Sands China Ltd. | 43,200 | 256,993 | |||
Wharf Holdings Ltd. (The) | 166,000 | 535,955 | |||
Wheelock & Co. Ltd. | 23,000 | 172,767 | |||
1,633,276 | |||||
India — 1.0% | |||||
Tata Power Co. Ltd. (The) | 180,423 | 217,023 | |||
Tata Steel Ltd. | 40,445 | 343,614 | |||
Yes Bank Ltd. | 48,189 | 246,376 | |||
807,013 | |||||
Indonesia — 0.3% | |||||
Adaro Energy Tbk PT | 869,200 | 117,434 | |||
Bank Negara Indonesia Persero Tbk PT | 152,400 | 92,667 | |||
210,101 | |||||
Israel — 0.3% | |||||
Bank Leumi Le-Israel BM | 44,263 | 275,696 | |||
Italy — 3.6% | |||||
Assicurazioni Generali SpA | 29,970 | 510,042 | |||
Enel SpA | 30,580 | 167,942 | |||
Eni SpA | 24,083 | 439,981 | |||
EXOR NV | 9,102 | 670,347 | |||
Fiat Chrysler Automobiles NV(1) | 32,179 | 729,187 | |||
Italgas SpA | 33,926 | 176,724 | |||
Terna Rete Elettrica Nazionale SpA | 29,978 | 158,666 | |||
2,852,889 | |||||
Japan — 22.9% | |||||
Astellas Pharma, Inc. | 41,100 | 627,271 |
7
Shares | Value | ||||
Brother Industries Ltd. | 17,900 | $ | 372,254 | ||
Canon, Inc. | 21,700 | 740,105 | |||
cocokara fine, Inc. | 900 | 66,604 | |||
Daiichikosho Co., Ltd. | 4,800 | 223,425 | |||
Daiwa Securities Group, Inc. | 41,000 | 237,191 | |||
Eisai Co. Ltd. | 1,400 | 101,006 | |||
Haseko Corp. | 6,000 | 90,844 | |||
Hitachi Construction Machinery Co. Ltd. | 7,200 | 263,932 | |||
Honda Motor Co. Ltd. | 11,900 | 378,173 | |||
Kajima Corp. | 60,000 | 487,868 | |||
Kansai Electric Power Co., Inc. (The) | 9,900 | 141,803 | |||
KDDI Corp. | 29,000 | 782,870 | |||
Kirin Holdings Co. Ltd. | 15,600 | 441,506 | |||
Lawson, Inc. | 3,700 | 240,745 | |||
Leopalace21 Corp. | 51,600 | 355,015 | |||
Marubeni Corp. | 6,400 | 49,716 | |||
Mebuki Financial Group, Inc. | 167,600 | 607,852 | |||
Meitec Corp. | 1,500 | 68,824 | |||
Mitsubishi Chemical Holdings Corp. | 47,900 | 441,549 | |||
Mitsubishi Corp. | 13,500 | 374,650 | |||
Mitsubishi UFJ Financial Group, Inc. | 135,200 | 807,826 | |||
Mizuho Financial Group, Inc. | 148,800 | 258,719 | |||
MS&AD Insurance Group Holdings, Inc. | 6,400 | 203,185 | |||
Nichias Corp. | 9,000 | 112,113 | |||
Nihon Unisys Ltd. | 10,500 | 262,448 | |||
Nippon Telegraph & Telephone Corp. | 15,500 | 725,829 | |||
NTT DOCOMO, Inc. | 23,600 | 610,063 | |||
Oji Holdings Corp. | 48,000 | 314,424 | |||
ORIX Corp. | 25,300 | 422,900 | |||
SBI Holdings, Inc. | 5,800 | 157,334 | |||
Sega Sammy Holdings, Inc. | 40,700 | 716,263 | |||
Sony Corp. | 5,300 | 249,899 | |||
Square Enix Holdings Co. Ltd. | 8,200 | 406,708 | |||
Subaru Corp. | 10,200 | 311,308 | |||
Sumitomo Dainippon Pharma Co., Ltd. | 24,100 | 499,387 | |||
Sumitomo Mitsui Financial Group, Inc. | 10,700 | 441,914 | |||
Suzuken Co. Ltd. | 6,300 | 281,820 | |||
Suzuki Motor Corp. | 10,900 | 624,814 | |||
Taisei Corp. | 13,300 | 727,851 | |||
Takeda Pharmaceutical Co., Ltd. | 6,600 | 269,048 | |||
Tokuyama Corp. | 4,100 | 145,583 | |||
Toyota Boshoku Corp. | 13,400 | 253,638 | |||
Toyota Motor Corp. | 21,400 | 1,354,522 | |||
Trend Micro, Inc. | 2,900 | 163,565 | |||
TS Tech Co. Ltd. | 15,500 | 679,760 | |||
Ulvac, Inc. | 2,700 | 119,356 | |||
18,213,480 | |||||
Malaysia — 0.5% | |||||
CIMB Group Holdings Bhd | 192,400 | 282,303 | |||
Malayan Banking Bhd | 51,700 | 124,965 | |||
407,268 |
8
Shares | Value | ||||
Netherlands — 3.1% | |||||
ABN AMRO Group NV CVA | 14,158 | $ | 368,212 | ||
Aegon NV | 51,217 | 318,084 | |||
ASR Nederland NV | 9,936 | 421,333 | |||
ING Groep NV | 74,338 | 1,080,298 | |||
Koninklijke Ahold Delhaize NV | 12,755 | 293,391 | |||
2,481,318 | |||||
Norway — 2.5% | |||||
Aker BP ASA | 14,623 | 532,358 | |||
Equinor ASA | 36,469 | 957,400 | |||
Telenor ASA | 24,076 | 495,852 | |||
1,985,610 | |||||
Poland — 0.5% | |||||
Powszechny Zaklad Ubezpieczen SA | 37,974 | 372,446 | |||
Singapore — 2.2% | |||||
ComfortDelGro Corp. Ltd. | 76,500 | 140,251 | |||
DBS Group Holdings Ltd. | 3,600 | 75,936 | |||
Oversea-Chinese Banking Corp. Ltd. | 76,700 | 714,684 | |||
StarHub Ltd. | 51,000 | 73,490 | |||
United Overseas Bank Ltd. | 34,400 | 720,050 | |||
1,724,411 | |||||
South Korea — 1.5% | |||||
GS Holdings Corp. | 921 | 49,725 | |||
Hanwha Corp. | 4,197 | 139,759 | |||
Hyundai Marine & Fire Insurance Co. Ltd. | 2,491 | 78,597 | |||
Samsung Electronics Co. Ltd. | 7,300 | 342,670 | |||
SK Hynix, Inc. | 4,670 | 402,598 | |||
SK Innovation Co. Ltd. | 820 | 156,390 | |||
1,169,739 | |||||
Spain — 4.6% | |||||
Abertis Infraestructuras SA | 7,180 | 154,123 | |||
Banco Bilbao Vizcaya Argentaria SA | 87,335 | 596,219 | |||
Banco Santander SA | 106,963 | 573,859 | |||
Endesa SA | 8,841 | 195,499 | |||
Mapfre SA | 150,882 | 459,037 | |||
Repsol SA | 45,475 | 865,050 | |||
Telefonica SA | 90,185 | 795,985 | |||
3,639,772 | |||||
Switzerland — 4.8% | |||||
Nestle SA | 4,262 | 321,228 | |||
Novartis AG | 16,706 | 1,239,479 | |||
Roche Holding AG | 2,584 | 554,223 | |||
Swisscom AG | 1,444 | 643,145 | |||
UBS Group AG | 2,230 | 33,510 | |||
Zurich Insurance Group AG | 3,507 | 1,041,583 | |||
3,833,168 | |||||
Taiwan — 0.8% | |||||
AU Optronics Corp. | 546,000 | 238,759 | |||
Catcher Technology Co. Ltd. | 12,000 | 138,889 | |||
Shin Kong Financial Holding Co. Ltd. | 400,000 | 159,396 |
9
Shares | Value | ||||
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 1,600 | $ | 61,920 | ||
598,964 | |||||
United Kingdom — 22.4% | |||||
3i Group plc | 56,423 | 715,051 | |||
Anglo American plc | 15,543 | 371,487 | |||
BAE Systems plc | 37,235 | 316,573 | |||
BHP Billiton plc | 46,981 | 1,080,231 | |||
BP plc | 99,665 | 763,780 | |||
BT Group plc | 47,067 | 128,215 | |||
Centamin plc | 29,946 | 51,300 | |||
Centrica plc | 317,068 | 614,997 | |||
Direct Line Insurance Group plc | 40,380 | 191,760 | |||
Evraz plc | 43,582 | 296,018 | |||
GlaxoSmithKline plc | 87,495 | 1,772,632 | |||
HSBC Holdings plc | 211,027 | 2,021,968 | |||
International Consolidated Airlines Group SA | 72,957 | 661,028 | |||
Investec plc | 67,680 | 500,027 | |||
Legal & General Group plc | 87,669 | 314,517 | |||
Lloyds Banking Group plc | 270,023 | 226,938 | |||
Marks & Spencer Group plc | 40,370 | 152,205 | |||
Next plc | 4,293 | 331,060 | |||
Rio Tinto plc | 24,744 | 1,395,169 | |||
Royal Dutch Shell plc, B Shares | 87,888 | 3,128,687 | |||
Royal Mail plc | 85,240 | 576,798 | |||
Segro plc | 38,931 | 338,841 | |||
Standard Life Aberdeen plc | 79,214 | 368,451 | |||
Thomas Cook Group plc | 302,355 | 453,044 | |||
Victrex plc | 3,679 | 137,908 | |||
Vodafone Group plc | 351,138 | 898,372 | |||
17,807,057 | |||||
TOTAL COMMON STOCKS (Cost $74,792,463) | 75,472,051 | ||||
EXCHANGE-TRADED FUNDS — 2.9% | |||||
iShares MSCI EAFE ETF | 15,200 | 1,054,880 | |||
iShares MSCI EAFE Value ETF | 21,000 | 1,124,130 | |||
iShares MSCI Japan ETF | 1,600 | 95,584 | |||
TOTAL EXCHANGE-TRADED FUNDS (Cost $2,276,444) | 2,274,594 | ||||
TEMPORARY CASH INVESTMENTS — 1.3% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 8/31/18 - 8/15/44, valued at $575,764), in a joint trading account at 1.50%, dated 5/31/18, due 6/1/18 (Delivery value $561,701) | 561,678 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.75%, 11/15/43, valued at $481,694), at 0.74%, dated 5/31/18, due 6/1/18 (Delivery value $468,010) | 468,000 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 352 | 352 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $1,030,030) | 1,030,030 | ||||
TOTAL INVESTMENT SECURITIES — 99.2% (Cost $78,098,937) | 78,776,675 | ||||
OTHER ASSETS AND LIABILITIES — 0.8% | 657,474 | ||||
TOTAL NET ASSETS — 100.0% | $ | 79,434,149 |
10
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Financials | 29.0 | % |
Energy | 11.7 | % |
Consumer Discretionary | 11.1 | % |
Materials | 8.7 | % |
Industrials | 7.8 | % |
Telecommunication Services | 7.7 | % |
Health Care | 7.6 | % |
Information Technology | 4.2 | % |
Utilities | 2.8 | % |
Real Estate | 2.2 | % |
Consumer Staples | 2.2 | % |
Exchange-Traded Funds | 2.9 | % |
Cash and Equivalents* | 2.1 | % |
*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.
11
Statement of Assets and Liabilities |
MAY 31, 2018 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $78,098,937) | $ | 78,776,675 | |
Foreign currency holdings, at value (cost of $2,932) | 2,927 | ||
Receivable for capital shares sold | 62,008 | ||
Dividends and interest receivable | 738,982 | ||
79,580,592 | |||
Liabilities | |||
Payable for capital shares redeemed | 66,977 | ||
Accrued management fees | 73,701 | ||
Distribution and service fees payable | 5,765 | ||
146,443 | |||
Net Assets | $ | 79,434,149 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 77,464,145 | |
Undistributed net investment income | 906,782 | ||
Undistributed net realized gain | 389,428 | ||
Net unrealized appreciation | 673,794 | ||
$ | 79,434,149 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $13,722,570 | 1,608,859 | $8.53 | |||
I Class, $0.01 Par Value | $4,879,643 | 572,211 | $8.53 | |||
A Class, $0.01 Par Value | $9,371,979 | 1,094,409 | $8.56* | |||
C Class, $0.01 Par Value | $3,823,327 | 450,604 | $8.48 | |||
R Class, $0.01 Par Value | $744,462 | 87,414 | $8.52 | |||
R6 Class, $0.01 Par Value | $46,892,168 | 5,496,941 | $8.53 |
*Maximum offering price $9.08 (net asset value divided by 0.9425).
See Notes to Financial Statements.
12
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $170,682) | $ | 1,705,867 | |
Interest | 3,620 | ||
1,709,487 | |||
Expenses: | |||
Management fees | 430,278 | ||
Distribution and service fees: | |||
A Class | 12,384 | ||
C Class | 20,528 | ||
R Class | 1,669 | ||
Directors' fees and expenses | 1,100 | ||
Other expenses | 10,096 | ||
476,055 | |||
Net investment income (loss) | 1,233,432 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions (net of foreign tax expenses paid (refunded) of $2,246) | 458,204 | ||
Foreign currency translation transactions | (10,155 | ) | |
448,049 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | (3,013,510 | ) | |
Translation of assets and liabilities in foreign currencies | (8,191 | ) | |
(3,021,701 | ) | ||
Net realized and unrealized gain (loss) | (2,573,652 | ) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (1,340,220 | ) |
See Notes to Financial Statements.
13
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2017 | ||||||
Increase (Decrease) in Net Assets | May 31, 2018 | November 30, 2017 | ||||
Operations | ||||||
Net investment income (loss) | $ | 1,233,432 | $ | 2,217,980 | ||
Net realized gain (loss) | 448,049 | 8,435,285 | ||||
Change in net unrealized appreciation (depreciation) | (3,021,701 | ) | 7,590,199 | |||
Net increase (decrease) in net assets resulting from operations | (1,340,220 | ) | 18,243,464 | |||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (466,849 | ) | (303,253 | ) | ||
I Class | (130,916 | ) | (197,608 | ) | ||
A Class | (291,034 | ) | (193,052 | ) | ||
C Class | (92,919 | ) | (48,855 | ) | ||
R Class | (17,238 | ) | (6,975 | ) | ||
R6 Class | (1,634,209 | ) | (1,271,342 | ) | ||
Decrease in net assets from distributions | (2,633,165 | ) | (2,021,085 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 3,383,984 | 4,056,076 | ||||
Redemption Fees | ||||||
Increase in net assets from redemption fees | — | 6,221 | ||||
Net increase (decrease) in net assets | (589,401 | ) | 20,284,676 | |||
Net Assets | ||||||
Beginning of period | 80,023,550 | 59,738,874 | ||||
End of period | $ | 79,434,149 | $ | 80,023,550 | ||
Undistributed net investment income | $ | 906,782 | $ | 2,306,515 |
See Notes to Financial Statements.
14
Notes to Financial Statements |
MAY 31, 2018 (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, 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
15
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 — Prior to October 9, 2017, the fund may have imposed a 2.00% redemption fee on shares held less than 60 days. The fee was not applicable to all classes. The redemption fee was retained by
16
the fund to help 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 Strategic Asset Allocations, Inc. own, in aggregate, 8% 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 non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The 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, 2018 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |
Investor Class | 1.100% to 1.300% | 1.28% |
I Class | 0.900% to 1.100% | 1.08% |
A Class | 1.100% to 1.300% | 1.28% |
C Class | 1.100% to 1.300% | 1.28% |
R Class | 1.100% to 1.300% | 1.28% |
R6 Class | 0.750% to 0.950% | 0.93% |
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, 2018 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.
Other Expenses — The fund’s other expenses may include interest charges, clearing exchange fees, proxy solicitation expenses, filing fees for foreign tax reclaims and other miscellaneous expenses. The impact of
17
other expenses to the ratio of operating expenses to average net assets was 0.03% for the period ended May 31, 2018.
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 $11,918 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, 2018 were $32,808,611 and $31,742,233, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2018 | Year ended November 30, 2017 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 45,000,000 | 45,000,000 | ||||||||
Sold | 200,652 | $ | 1,811,220 | 640,164 | $ | 5,234,228 | ||||
Issued in reinvestment of distributions | 51,815 | 453,754 | 37,544 | 294,211 | ||||||
Redeemed | (250,023 | ) | (2,227,550 | ) | (938,412 | ) | (7,864,014 | ) | ||
2,444 | 37,424 | (260,704 | ) | (2,335,575 | ) | |||||
I Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 241,800 | 2,145,987 | 530,867 | 4,319,261 | ||||||
Issued in reinvestment of distributions | 14,677 | 128,532 | 25,255 | 197,608 | ||||||
Redeemed | (149,469 | ) | (1,335,886 | ) | (1,076,651 | ) | (8,996,703 | ) | ||
107,008 | 938,633 | (520,529 | ) | (4,479,834 | ) | |||||
A Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 46,166 | 413,796 | 142,161 | 1,174,506 | ||||||
Issued in reinvestment of distributions | 33,039 | 290,588 | 24,292 | 191,924 | ||||||
Redeemed | (81,655 | ) | (729,985 | ) | (557,570 | ) | (4,576,658 | ) | ||
(2,450 | ) | (25,601 | ) | (391,117 | ) | (3,210,228 | ) | |||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 6,192 | 55,643 | 69,598 | 554,958 | ||||||
Issued in reinvestment of distributions | 10,599 | 92,411 | 6,082 | 48,354 | ||||||
Redeemed | (42,397 | ) | (374,780 | ) | (114,545 | ) | (951,482 | ) | ||
(25,606 | ) | (226,726 | ) | (38,865 | ) | (348,170 | ) | |||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 31,326 | 273,368 | 8,676 | 70,168 | ||||||
Issued in reinvestment of distributions | 1,967 | 17,188 | 878 | 6,952 | ||||||
Redeemed | (6,041 | ) | (54,360 | ) | (10,217 | ) | (83,536 | ) | ||
27,252 | 236,196 | (663 | ) | (6,416 | ) | |||||
R6 Class/Shares Authorized | 70,000,000 | 70,000,000 | ||||||||
Sold | 795,074 | 7,019,299 | 5,406,595 | 43,016,719 | ||||||
Issued in reinvestment of distributions | 186,520 | 1,634,209 | 163,023 | 1,271,342 | ||||||
Redeemed | (699,860 | ) | (6,229,450 | ) | (3,506,509 | ) | (29,851,762 | ) | ||
281,734 | 2,424,058 | 2,063,109 | 14,436,299 | |||||||
Net increase (decrease) | 390,382 | $ | 3,383,984 | 851,231 | $ | 4,056,076 |
18
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. 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 | $ | 473,615 | $ | 74,998,436 | — | |||
Exchange-Traded Funds | 2,274,594 | — | — | |||||
Temporary Cash Investments | 352 | 1,029,678 | — | |||||
$ | 2,748,561 | $ | 76,028,114 | — |
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 | $ | 78,130,210 | |
Gross tax appreciation of investments | $ | 5,592,343 | |
Gross tax depreciation of investments | (4,945,878 | ) | |
Net tax appreciation (depreciation) of investments | $ | 646,465 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
19
Financial Highlights |
For a Share Outstanding Throughout the Years Ended 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 | |||||||||||||
2018(3) | $8.96 | 0.13 | (0.27) | (0.14) | (0.29) | $8.53 | (1.64)% | 1.31%(4) | 2.92%(4) | 40% | $13,723 | ||
2017 | $7.40 | 0.21 | 1.51 | 1.72 | (0.16) | $8.96 | 23.59% | 1.30% | 2.47% | 101% | $14,398 | ||
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 | ||
I Class | |||||||||||||
2018(3) | $8.97 | 0.15 | (0.28) | (0.13) | (0.31) | $8.53 | (1.55)% | 1.11%(4) | 3.12%(4) | 40% | $4,880 | ||
2017 | $7.41 | 0.23 | 1.51 | 1.74 | (0.18) | $8.97 | 23.86% | 1.10% | 2.67% | 101% | $4,173 | ||
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 |
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 | |||||||||||||
2018(3) | $8.99 | 0.12 | (0.28) | (0.16) | (0.27) | $8.56 | (1.88)% | 1.56%(4) | 2.67%(4) | 40% | $9,372 | ||
2017 | $7.41 | 0.17 | 1.55 | 1.72 | (0.14) | $8.99 | 23.45% | 1.55% | 2.22% | 101% | $9,857 | ||
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 | ||
C Class | |||||||||||||
2018(3) | $8.87 | 0.08 | (0.27) | (0.19) | (0.20) | $8.48 | (2.20)% | 2.31%(4) | 1.92%(4) | 40% | $3,823 | ||
2017 | $7.33 | 0.12 | 1.51 | 1.63 | (0.09) | $8.87 | 22.41% | 2.30% | 1.47% | 101% | $4,225 | ||
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 | ||
R Class | |||||||||||||
2018(3) | $8.93 | 0.13 | (0.30) | (0.17) | (0.24) | $8.52 | (1.92)% | 1.81%(4) | 2.42%(4) | 40% | $744 | ||
2017 | $7.36 | 0.16 | 1.52 | 1.68 | (0.11) | $8.93 | 23.09% | 1.80% | 1.97% | 101% | $537 | ||
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 |
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 | |||||||||||||
2018(3) | $8.98 | 0.15 | (0.28) | (0.13) | (0.32) | $8.53 | (1.51)% | 0.96%(4) | 3.27%(4) | 40% | $46,892 | ||
2017 | $7.42 | 0.23 | 1.52 | 1.75 | (0.19) | $8.98 | 24.06% | 0.95% | 2.82% | 101% | $46,833 | ||
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(5) | $8.21 | 0.06 | 0.69 | 0.75 | — | $8.96 | 9.14% | 0.96%(4) | 2.02%(4) | 83%(6) | $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, 2018 (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 retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
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. | ||
©2018 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92632 1807 |
![acihorizblkd26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/acihorizblkd26.jpg)
Semiannual Report | |
May 31, 2018 | |
NT Emerging Markets Fund | |
G Class (ACLKX) |
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, 2018 | |
Top Ten Holdings | % of net assets |
Tencent Holdings Ltd. | 5.9% |
Samsung Electronics Co. Ltd. | 4.5% |
Alibaba Group Holding Ltd. ADR | 4.4% |
Taiwan Semiconductor Manufacturing Co. Ltd. | 3.3% |
Industrial & Commercial Bank of China Ltd., H Shares | 2.4% |
Naspers Ltd., N Shares | 2.1% |
China Construction Bank Corp., H Shares | 1.8% |
HDFC Bank Ltd. | 1.8% |
CNOOC Ltd. | 1.7% |
China Resources Beer Holdings Co. Ltd. | 1.6% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 97.0% |
Temporary Cash Investments | 3.1% |
Other Assets and Liabilities | (0.1)% |
Investments by Country | % of net assets |
China | 33.6% |
South Korea | 13.5% |
Taiwan | 10.0% |
Brazil | 7.6% |
India | 7.6% |
South Africa | 4.5% |
Russia | 3.8% |
Thailand | 3.6% |
Indonesia | 2.1% |
Other Countries | 10.7% |
Cash and Equivalents* | 3.0% |
*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, 2017 to May 31, 2018.
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 12/1/17 | Ending Account Value 5/31/18 | Expenses Paid During Period(1) 12/1/17 - 5/31/18 | Annualized Expense Ratio(1) | |
Actual | ||||
G Class | $1,000 | $1,002.80 | $0.10 | 0.02% |
Hypothetical | ||||
G Class | $1,000 | $1,024.83 | $0.10 | 0.02% |
(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. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
3
Schedule of Investments |
MAY 31, 2018 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 97.0% | |||||
Brazil — 7.6% | |||||
Ambev SA ADR | 867,936 | $ | 4,565,343 | ||
Banco do Brasil SA | 318,100 | 2,579,856 | |||
Itau Unibanco Holding SA ADR | 437,012 | 5,047,489 | |||
Localiza Rent a Car SA | 532,600 | 3,524,026 | |||
Lojas Renner SA | 337,700 | 2,678,722 | |||
Magazine Luiza SA | 205,500 | 5,946,950 | |||
Pagseguro Digital Ltd., Class A(1) | 122,032 | 4,060,005 | |||
Petrobras Distribuidora SA | 495,200 | 2,413,738 | |||
Vale SA ADR | 242,102 | 3,292,587 | |||
34,108,716 | |||||
Chile — 1.3% | |||||
SACI Falabella | 600,066 | 5,618,299 | |||
China — 33.6% | |||||
Alibaba Group Holding Ltd. ADR(1) | 98,843 | 19,571,902 | |||
Anhui Conch Cement Co. Ltd., H Shares | 967,500 | 5,917,908 | |||
Brilliance China Automotive Holdings Ltd. | 2,130,000 | 3,976,767 | |||
China Construction Bank Corp., H Shares | 8,128,000 | 8,186,741 | |||
China Gas Holdings Ltd. | 1,502,400 | 6,213,019 | |||
China Lodging Group Ltd. ADR | 121,404 | 5,342,990 | |||
China Resources Beer Holdings Co. Ltd. | 1,470,000 | 7,132,573 | |||
CIFI Holdings Group Co. Ltd. | 3,538,000 | 2,715,658 | |||
CNOOC Ltd. | 4,479,000 | 7,589,868 | |||
Geely Automobile Holdings Ltd. | 1,717,000 | 4,827,145 | |||
Haier Electronics Group Co. Ltd. | 1,032,000 | 3,704,382 | |||
Industrial & Commercial Bank of China Ltd., H Shares | 13,110,095 | 10,785,352 | |||
KWG Property Holding Ltd. | 2,045,500 | 2,813,742 | |||
MMG Ltd.(1) | 1,804,000 | 1,307,976 | |||
New Oriental Education & Technology Group, Inc. ADR | 59,075 | 5,876,190 | |||
Nine Dragons Paper Holdings Ltd. | 1,446,000 | 2,282,675 | |||
Ping An Insurance Group Co. of China Ltd., H Shares | 593,000 | 5,770,320 | |||
Shenzhou International Group Holdings Ltd. | 451,000 | 5,268,177 | |||
Sunny Optical Technology Group Co. Ltd. | 203,800 | 4,104,121 | |||
TAL Education Group ADR(1) | 138,925 | 5,898,756 | |||
Tencent Holdings Ltd. | 518,800 | 26,151,490 | |||
Weibo Corp. ADR(1) | 17,557 | 1,789,234 | |||
Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., H Shares(1) | 772,500 | 3,151,269 | |||
150,378,255 | |||||
Czech Republic — 0.9% | |||||
Moneta Money Bank AS | 1,080,898 | 3,775,534 | |||
Egypt — 0.6% | |||||
Commercial International Bank Egypt S.A.E. | 286,948 | 1,351,031 | |||
Commercial International Bank Egypt S.A.E. GDR | 298,604 | 1,398,649 | |||
2,749,680 | |||||
Hungary — 1.1% | |||||
OTP Bank Nyrt | 135,238 | 4,837,589 |
4
Shares | Value | ||||
India — 7.6% | |||||
Ashok Leyland Ltd. | 1,027,373 | $ | 2,245,889 | ||
Balkrishna Industries Ltd. | 125,968 | 2,112,848 | |||
Bharat Financial Inclusion Ltd.(1) | 371,216 | 6,404,469 | |||
Future Retail Ltd.(1) | 381,850 | 3,323,721 | |||
Godrej Consumer Products Ltd. | 232,420 | 3,914,472 | |||
HDFC Bank Ltd. | 243,900 | 8,002,375 | |||
InterGlobe Aviation Ltd. | 52,715 | 951,008 | |||
Larsen & Toubro Ltd. | 190,548 | 3,862,466 | |||
Motherson Sumi Systems Ltd. | 704,835 | 3,230,162 | |||
34,047,410 | |||||
Indonesia — 2.1% | |||||
Bank Rakyat Indonesia Persero Tbk PT | 20,479,200 | 4,526,546 | |||
Telekomunikasi Indonesia Persero Tbk PT | 7,263,100 | 1,815,488 | |||
United Tractors Tbk PT | 1,284,100 | 3,228,645 | |||
9,570,679 | |||||
Malaysia — 0.9% | |||||
CIMB Group Holdings Bhd | 1,961,053 | 2,877,393 | |||
My EG Services Bhd | 4,185,500 | 932,056 | |||
3,809,449 | |||||
Mexico — 1.7% | |||||
America Movil SAB de CV, Series L ADR | 231,408 | 3,589,138 | |||
Mexichem SAB de CV | 1,470,897 | 4,147,641 | |||
7,736,779 | |||||
Peru — 1.1% | |||||
Credicorp Ltd. | 22,519 | 4,986,157 | |||
Philippines — 0.8% | |||||
Ayala Land, Inc. | 4,654,300 | 3,520,493 | |||
Russia — 3.8% | |||||
Novatek PJSC GDR | 36,942 | 5,323,827 | |||
Sberbank of Russia PJSC ADR (London) | 321,546 | 4,610,288 | |||
X5 Retail Group NV GDR | 79,522 | 2,258,583 | |||
Yandex NV, A Shares(1) | 147,883 | 4,957,038 | |||
17,149,736 | |||||
South Africa — 4.5% | |||||
Capitec Bank Holdings Ltd. | 62,477 | 4,287,724 | |||
Discovery Ltd. | 260,161 | 3,151,965 | |||
Foschini Group Ltd. (The) | 220,061 | 3,182,602 | |||
Naspers Ltd., N Shares | 39,158 | 9,318,357 | |||
19,940,648 | |||||
South Korea — 13.5% | |||||
CJ Logistics Corp.(1) | 29,928 | 4,141,106 | |||
Cosmax, Inc. | 15,646 | 2,457,615 | |||
Doosan Infracore Co. Ltd.(1) | 528,268 | 5,085,935 | |||
Hana Financial Group, Inc. | 123,207 | 4,741,444 | |||
Hotel Shilla Co. Ltd. | 57,482 | 6,583,110 | |||
Hyundai Heavy Industries Co. Ltd.(1) | 23,327 | 2,467,886 | |||
Mando Corp. | 55,765 | 1,988,047 | |||
Medy-Tox, Inc. | 5,241 | 3,648,176 | |||
Samsung Electronics Co. Ltd. | 429,250 | 20,149,452 | |||
Seegene, Inc.(1) | 88,357 | 2,581,575 |
5
Shares | Value | ||||
SK Hynix, Inc. | 75,321 | $ | 6,493,380 | ||
60,337,726 | |||||
Taiwan — 10.0% | |||||
Airtac International Group | 180,025 | 3,080,383 | |||
ASPEED Technology, Inc. | 89,000 | 2,671,536 | |||
Chailease Holding Co. Ltd. | 1,448,000 | 5,147,625 | |||
Chroma ATE, Inc. | 364,000 | 1,807,132 | |||
Globalwafers Co. Ltd. | 359,000 | 7,052,694 | |||
Hota Industrial Manufacturing Co. Ltd. | 519,517 | 2,502,547 | |||
LandMark Optoelectronics Corp. | 159,000 | 1,585,517 | |||
Powertech Technology, Inc. | 467,000 | 1,387,752 | |||
President Chain Store Corp. | 243,000 | 2,487,764 | |||
Taiwan Cement Corp. | 1,564,000 | 2,268,897 | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,996,774 | 14,899,368 | |||
44,891,215 | |||||
Thailand — 3.6% | |||||
Airports of Thailand PCL | 1,572,100 | 3,361,148 | |||
CP ALL PCL | 2,159,300 | 5,446,845 | |||
Kasikornbank PCL | 321,100 | 1,954,069 | |||
Kasikornbank PCL NVDR | 402,400 | 2,404,686 | |||
Minor International PCL | 2,994,800 | 3,035,349 | |||
Srisawad Corp. PCL | 60,563 | 66,503 | |||
16,268,600 | |||||
Turkey — 1.0% | |||||
BIM Birlesik Magazalar AS | 165,120 | 2,524,695 | |||
Ford Otomotiv Sanayi AS | 130,085 | 1,838,171 | |||
4,362,866 | |||||
United Kingdom — 1.3% | |||||
NMC Health plc | 120,550 | 5,649,108 | |||
TOTAL COMMON STOCKS (Cost $320,341,534) | 433,738,939 | ||||
TEMPORARY CASH INVESTMENTS — 3.1% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 8/31/18 - 8/15/44, valued at $7,580,214), in a joint trading account at 1.50%, dated 5/31/18, due 6/1/18 (Delivery value $7,395,076) | 7,394,768 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.75%, 11/15/43, valued at $6,290,353), at 0.74%, dated 5/31/18, due 6/1/18 (Delivery value $6,165,127) | 6,165,000 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 4,672 | 4,672 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $13,564,440) | 13,564,440 | ||||
TOTAL INVESTMENT SECURITIES — 100.1% (Cost $333,905,974) | 447,303,379 | ||||
OTHER ASSETS AND LIABILITIES — (0.1)% | (300,872 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 447,002,507 |
6
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Information Technology | 27.0% | |
Financials | 21.6% | |
Consumer Discretionary | 19.2% | |
Consumer Staples | 7.6% | |
Industrials | 6.5% | |
Materials | 4.2% | |
Energy | 3.6% | |
Health Care | 2.7% | |
Real Estate | 2.0% | |
Utilities | 1.4% | |
Telecommunication Services | 1.2% | |
Cash and Equivalents* | 3.0 | % |
* Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
GDR | - | Global Depositary Receipt |
NVDR | - | Non-Voting Depositary Receipt |
(1) | Non-income producing. |
See Notes to Financial Statements.
7
Statement of Assets and Liabilities |
MAY 31, 2018 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $333,905,974) | $ | 447,303,379 | |
Foreign currency holdings, at value (cost of $1,587,833) | 1,589,155 | ||
Receivable for investments sold | 911,604 | ||
Dividends and interest receivable | 568,160 | ||
Other assets | 37,698 | ||
450,409,996 | |||
Liabilities | |||
Payable for investments purchased | 2,015,657 | ||
Payable for capital shares redeemed | 376,194 | ||
Accrued foreign taxes | 1,015,638 | ||
3,407,489 | |||
Net Assets | $ | 447,002,507 | |
G Class Capital Shares, $0.01 Par Value | |||
Shares authorized | 400,000,000 | ||
Shares outstanding | 34,356,670 | ||
Net Asset Value Per Share | $ | 13.01 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 297,919,244 | |
Undistributed net investment income | 1,037,808 | ||
Undistributed net realized gain | 35,678,829 | ||
Net unrealized appreciation | 112,366,626 | ||
$ | 447,002,507 |
See Notes to Financial Statements.
8
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $389,049) | $ | 3,139,441 | |
Interest | 19,104 | ||
3,158,545 | |||
Expenses: | |||
Management fees | 2,317,231 | ||
Directors' fees and expenses | 6,477 | ||
Other expenses | 32,780 | ||
2,356,488 | |||
Fees waived | (2,317,231 | ) | |
39,257 | |||
Net investment income (loss) | 3,119,288 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions (net of foreign tax expenses paid (refunded) of $531,328) | 38,918,250 | ||
Foreign currency translation transactions | (298,376 | ) | |
38,619,874 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $803,677) | (37,783,520 | ) | |
Translation of assets and liabilities in foreign currencies | (9,279 | ) | |
(37,792,799 | ) | ||
Net realized and unrealized gain (loss) | 827,075 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 3,946,363 |
See Notes to Financial Statements.
9
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2017 | ||||||
Increase (Decrease) in Net Assets | May 31, 2018 | November 30, 2017 | ||||
Operations | ||||||
Net investment income (loss) | $ | 3,119,288 | $ | 3,583,701 | ||
Net realized gain (loss) | 38,619,874 | 55,557,307 | ||||
Change in net unrealized appreciation (depreciation) | (37,792,799 | ) | 111,702,130 | |||
Net increase (decrease) in net assets resulting from operations | 3,946,363 | 170,843,138 | ||||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
G Class | (4,623,999 | ) | (3,148,286 | ) | ||
R6 Class | — | (409,550 | ) | |||
From net realized gains: | ||||||
G Class | (48,064,831 | ) | — | |||
Decrease in net assets from distributions | (52,688,830 | ) | (3,557,836 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 14,250,973 | (119,607,753 | ) | |||
Net increase (decrease) in net assets | (34,491,494 | ) | 47,677,549 | |||
Net Assets | ||||||
Beginning of period | 481,494,001 | 433,816,452 | ||||
End of period | $ | 447,002,507 | $ | 481,494,001 | ||
Undistributed net investment income | $ | 1,037,808 | $ | 2,542,519 |
See Notes to Financial Statements.
10
Notes to Financial Statements |
MAY 31, 2018 (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 or the Bloomberg Industry Classification Standard for the tobacco industry. The fund offers the G Class. On July 31, 2017, all outstanding R6 Class shares were converted to G Class shares and the fund discontinued offering 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
11
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.
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. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
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). The agreement provides that all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on the daily net assets of the fund and paid monthly in arrears. From December 1, 2017 through March 31, 2018, the rate of the fee was determined by applying a fee rate calculation formula. This formula took 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 included the assets of Emerging Markets Fund, one fund in a series issued by the corporation. The annual management fee schedule ranged from 0.900% to 1.500%. Effective April 1, 2018, the stepped annual management fee schedule was terminated. The annual management fee is 0.90%. During the period ended May 31, 2018, the investment advisor agreed to waive the management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors. The effective annual management fee for the period ended May 31, 2018 was 0.98% before waiver and 0.00% after waiver.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund sales were $2,276,087 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $800,103 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, 2018 were $176,096,196 and $226,002,122, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2018 | Year ended November 30, 2017 | |||||||||
Shares | Amount | Shares | Amount | |||||||
G Class/Shares Authorized | 400,000,000 | 400,000,000 | ||||||||
Sold | 2,627,598 | $ | 35,964,673 | 7,513,763 | $ | 91,808,056 | ||||
Issued in reinvestment of distributions | 3,988,864 | 52,688,830 | 316,093 | 3,148,286 | ||||||
Redeemed | (5,368,886 | ) | (74,402,530 | ) | (13,118,731 | ) | (162,731,010 | ) | ||
1,247,576 | 14,250,973 | (5,288,875 | ) | (67,774,668 | ) | |||||
R6 Class/Shares Authorized | N/A | N/A | ||||||||
Sold | 1,068,935 | 11,481,250 | ||||||||
Issued in reinvestment of distributions | 41,161 | 409,550 | ||||||||
Redeemed | (4,941,581 | ) | (63,723,885 | ) | ||||||
(3,831,485 | ) | (51,833,085 | ) | |||||||
Net increase (decrease) | 1,247,576 | $ | 14,250,973 | (9,120,360 | ) | $ | (119,607,753 | ) |
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 | ||||||||
Brazil | $ | 16,965,424 | $ | 17,143,292 | — | |||
China | 38,479,072 | 111,899,183 | — | |||||
Mexico | 3,589,138 | 4,147,641 | — | |||||
Peru | 4,986,157 | — | — | |||||
Russia | 4,957,038 | 12,192,698 | — | |||||
Other Countries | — | 219,379,296 | — | |||||
Temporary Cash Investments | 4,672 | 13,559,768 | — | |||||
$ | 68,981,501 | $ | 378,321,878 | — |
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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.
Investing a significant portion of assets in one country or region makes the fund more dependent upon the political and economic circumstances of that particular country or region than a fund that is more widely diversified.
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 | $ | 334,607,416 | |
Gross tax appreciation of investments | $ | 126,514,967 | |
Gross tax depreciation of investments | (13,819,004 | ) | |
Net tax appreciation (depreciation) of investments | $ | 112,695,963 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended 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) | |||
G Class | |||||||||||||||||
2018(3) | $14.54 | 0.09 | (0.04) | 0.05 | (0.14) | (1.44) | (1.58) | $13.01 | 0.28% | 0.02%(4) | 1.00%(4) | 1.33%(4) | 0.35%(4) | 38% | $447,003 | ||
2017 | $10.27 | 0.09 | 4.26 | 4.35 | (0.08) | — | (0.08) | $14.54 | 42.75% | 0.69% | 1.25% | 0.74% | 0.18% | 56% | $481,494 | ||
2016 | $9.75 | 0.05 | 0.50 | 0.55 | (0.03) | — | (0.03) | $10.27 | 5.68% | 1.18% | 1.18% | 0.53% | 0.53% | 75% | $394,433 | ||
2015 | $10.84 | 0.05 | (1.12) | (1.07) | (0.02) | — | (0.02) | $9.75 | (9.88)% | 1.24% | 1.24% | 0.49% | 0.49% | 61% | $372,802 | ||
2014 | $10.67 | 0.05 | 0.16 | 0.21 | (0.04) | — | (0.04) | $10.84 | 2.02% | 1.25% | 1.25% | 0.45% | 0.45% | 84% | $323,641 | ||
2013 | $10.05 | 0.04 | 0.63 | 0.67 | (0.05) | — | (0.05) | $10.67 | 6.66% | 1.42% | 1.42% | 0.38% | 0.38% | 76% | $269,117 |
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, 2018 (unaudited). |
(4) | Annualized. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
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.
17
Notes |
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. | ||
©2018 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92626 1807 |
![acihorizblkd26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/acihorizblkd26.jpg)
Semiannual Report | |
May 31, 2018 | |
NT International Growth Fund | |
G Class (ACLNX) |
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, 2018 | |
Top Ten Holdings | % of net assets |
AIA Group Ltd. | 2.3% |
CSL Ltd. | 2.3% |
Lonza Group AG | 2.1% |
London Stock Exchange Group plc | 1.8% |
Diageo plc | 1.8% |
Treasury Wine Estates Ltd. | 1.7% |
Danone SA | 1.7% |
adidas AG | 1.7% |
Start Today Co. Ltd. | 1.5% |
AstraZeneca plc | 1.5% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 99.2% |
Temporary Cash Investments | 1.0% |
Other Assets and Liabilities | (0.2)% |
Investments by Country | % of net assets |
United Kingdom | 20.6% |
Japan | 16.9% |
Germany | 7.5% |
France | 6.8% |
China | 5.2% |
Switzerland | 5.1% |
Netherlands | 4.4% |
Australia | 4.0% |
Ireland | 3.6% |
Canada | 2.9% |
Sweden | 2.9% |
Belgium | 2.4% |
Hong Kong | 2.3% |
Spain | 2.3% |
Denmark | 2.2% |
Brazil | 2.1% |
Other Countries | 8.0% |
Cash and Equivalents* | 0.8% |
*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, 2017 to May 31, 2018.
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 12/1/17 | Ending Account Value 5/31/18 | Expenses Paid During Period(1) 12/1/17 - 5/31/18 | Annualized Expense Ratio(1) | |
Actual | ||||
G Class | $1,000 | $1,060.50 | $0.10 | 0.02% |
Hypothetical | ||||
G Class | $1,000 | $1,024.83 | $0.10 | 0.02% |
(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. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
3
Schedule of Investments |
MAY 31, 2018 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 99.2% | |||||
Australia — 4.0% | |||||
CSL Ltd. | 161,620 | $ | 22,636,854 | ||
Treasury Wine Estates Ltd. | 1,349,840 | 16,872,077 | |||
39,508,931 | |||||
Austria — 1.4% | |||||
Erste Group Bank AG(1) | 334,494 | 13,849,283 | |||
Belgium — 2.4% | |||||
KBC Group NV | 146,980 | 11,376,065 | |||
Umicore SA | 217,130 | 12,244,626 | |||
23,620,691 | |||||
Brazil — 2.1% | |||||
Banco do Brasil SA | 335,500 | 2,720,974 | |||
Itau Unibanco Holding SA, Preference Shares | 256,400 | 2,954,967 | |||
Localiza Rent a Car SA | 1,117,200 | 7,392,118 | |||
Lojas Renner SA | 359,400 | 2,850,851 | |||
Magazine Luiza SA | 162,100 | 4,691,001 | |||
20,609,911 | |||||
Canada — 2.9% | |||||
Bombardier, Inc., B Shares(1) | 3,798,020 | 14,294,569 | |||
Dollarama, Inc. | 42,590 | 4,915,620 | |||
First Quantum Minerals Ltd. | 594,980 | 9,338,148 | |||
28,548,337 | |||||
China — 5.2% | |||||
Alibaba Group Holding Ltd. ADR(1) | 68,290 | 13,522,103 | |||
ANTA Sports Products Ltd. | 1,520,000 | 8,743,616 | |||
China Lodging Group Ltd. ADR | 165,680 | 7,291,577 | |||
TAL Education Group ADR(1) | 209,480 | 8,894,521 | |||
Tencent Holdings Ltd. | 250,300 | 12,617,035 | |||
51,068,852 | |||||
Denmark — 2.2% | |||||
Chr Hansen Holding A/S | 127,100 | 12,220,223 | |||
DSV A/S | 111,820 | 9,290,252 | |||
21,510,475 | |||||
Finland — 1.0% | |||||
Neste Oyj | 125,460 | 10,227,521 | |||
France — 6.8% | |||||
Accor SA | 160,870 | 8,845,322 | |||
Arkema SA | 22,680 | 2,779,639 | |||
Danone SA | 220,960 | 16,859,680 | |||
Kering SA | 24,440 | 14,102,001 | |||
Ubisoft Entertainment SA(1) | 69,790 | 7,624,226 | |||
Valeo SA | 143,811 | 9,112,752 |
4
Shares | Value | ||||
Vivendi SA | 311,690 | $ | 7,842,004 | ||
67,165,624 | |||||
Germany — 7.5% | |||||
adidas AG | 72,120 | 16,327,294 | |||
Deutsche Boerse AG | 88,810 | 11,883,119 | |||
HeidelbergCement AG | 138,790 | 12,302,332 | |||
Infineon Technologies AG | 295,110 | 8,109,704 | |||
Symrise AG | 113,090 | 9,189,435 | |||
Wirecard AG | 37,390 | 5,781,685 | |||
Zalando SE(1) | 193,410 | 10,307,247 | |||
73,900,816 | |||||
Hong Kong — 2.3% | |||||
AIA Group Ltd. | 2,524,600 | 23,036,844 | |||
India — 0.9% | |||||
HDFC Bank Ltd. | 278,760 | 9,146,134 | |||
Indonesia — 1.0% | |||||
Bank Mandiri Persero Tbk PT | 19,269,400 | 9,742,910 | |||
Ireland — 3.6% | |||||
CRH plc | 372,740 | 13,771,509 | |||
Kerry Group plc, A Shares | 77,860 | 8,227,026 | |||
Ryanair Holdings plc ADR(1) | 115,004 | 13,330,113 | |||
35,328,648 | |||||
Italy — 0.6% | |||||
UniCredit SpA | 368,261 | 6,152,920 | |||
Japan — 16.9% | |||||
Chiba Bank Ltd. (The) | 774,000 | 5,937,455 | |||
Coca-Cola Bottlers Japan Holdings, Inc. | 176,700 | 7,401,613 | |||
CyberAgent, Inc. | 164,100 | 8,534,902 | |||
Daikin Industries Ltd. | 75,500 | 8,689,297 | |||
Don Quijote Holdings Co. Ltd. | 142,400 | 7,557,443 | |||
Keyence Corp. | 22,400 | 13,692,815 | |||
Komatsu Ltd. | 339,800 | 11,115,711 | |||
MonotaRO Co. Ltd. | 189,000 | 7,580,681 | |||
Nintendo Co. Ltd. | 22,500 | 9,262,432 | |||
Nitori Holdings Co. Ltd. | 49,600 | 8,506,272 | |||
Pola Orbis Holdings, Inc. | 204,100 | 10,064,523 | |||
Recruit Holdings Co. Ltd. | 406,300 | 11,258,571 | |||
Rohm Co. Ltd. | 94,600 | 8,703,885 | |||
Ryohin Keikaku Co. Ltd. | 27,500 | 9,320,014 | |||
Shiseido Co. Ltd. | 151,000 | 11,910,860 | |||
Start Today Co. Ltd. | 438,400 | 15,170,997 | |||
Sysmex Corp. | 134,100 | 12,022,908 | |||
166,730,379 | |||||
Mexico — 0.7% | |||||
Grupo Financiero Banorte SAB de CV | 1,229,000 | 6,510,826 | |||
Netherlands — 4.4% | |||||
ASML Holding NV | 68,920 | 13,446,375 |
5
Shares | Value | ||||
Heineken NV | 102,538 | $ | 10,280,014 | ||
InterXion Holding NV(1) | 130,120 | 8,309,463 | |||
Unilever NV CVA | 202,350 | 11,274,796 | |||
43,310,648 | |||||
Portugal — 0.5% | |||||
Jeronimo Martins SGPS SA | 290,530 | 4,561,285 | |||
Russia — 0.8% | |||||
Yandex NV, A Shares(1) | 234,290 | 7,853,401 | |||
Spain — 2.3% | |||||
Amadeus IT Group SA | 164,450 | 13,032,431 | |||
CaixaBank SA | 572,880 | 2,435,378 | |||
Cellnex Telecom SA | 290,020 | 7,391,103 | |||
22,858,912 | |||||
Sweden — 2.9% | |||||
Hexagon AB, B Shares | 207,000 | 11,668,846 | |||
Lundin Petroleum AB | 338,380 | 10,735,952 | |||
Swedbank AB, A Shares | 276,960 | 5,760,325 | |||
28,165,123 | |||||
Switzerland — 5.1% | |||||
Cie Financiere Richemont SA | 123,030 | 11,298,040 | |||
Credit Suisse Group AG(1) | 584,410 | 8,877,844 | |||
Julius Baer Group Ltd.(1) | 166,920 | 9,712,907 | |||
Lonza Group AG(1) | 77,900 | 20,908,118 | |||
50,796,909 | |||||
Taiwan — 0.5% | |||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 650,000 | 4,850,118 | |||
Thailand — 0.6% | |||||
CP ALL PCL | 2,271,300 | 5,729,365 | |||
United Kingdom — 20.6% | |||||
Ashtead Group plc | 177,553 | 5,478,948 | |||
ASOS plc(1) | 118,591 | 10,442,378 | |||
Associated British Foods plc | 207,430 | 7,304,261 | |||
AstraZeneca plc | 199,990 | 14,597,752 | |||
Aviva plc | 1,136,121 | 7,716,193 | |||
B&M European Value Retail SA | 1,834,010 | 9,809,107 | |||
Bunzl plc | 387,250 | 11,790,129 | |||
Carnival plc | 164,320 | 10,513,334 | |||
Coca-Cola HBC AG | 207,230 | 7,081,187 | |||
Compass Group plc | 483,464 | 10,396,684 | |||
Diageo plc | 481,080 | 17,670,737 | |||
Ferguson plc | 172,960 | 13,404,692 | |||
Intertek Group plc | 176,707 | 12,842,788 | |||
Just Eat plc(1) | 453,387 | 5,081,066 | |||
London Stock Exchange Group plc | 303,800 | 18,084,878 | |||
Royal Dutch Shell plc, A Shares | 374,372 | 13,025,645 | |||
Standard Chartered plc | 752,990 | 7,555,590 | |||
Tesco plc | 2,120,020 | 6,925,663 |
6
Shares | Value | ||||
Weir Group plc (The) | 459,470 | $ | 13,387,708 | ||
203,108,740 | |||||
TOTAL COMMON STOCKS (Cost $746,013,301) | 977,893,603 | ||||
TEMPORARY CASH INVESTMENTS — 1.0% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 8/31/18 - 8/15/44, valued at $5,423,313), in a joint trading account at 1.50%, dated 5/31/18, due 6/1/18 (Delivery value $5,290,855) | 5,290,635 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.75%, 11/15/43, valued at $4,499,586), at 0.74%, dated 5/31/18, due 6/1/18 (Delivery value $4,410,191) | 4,410,000 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 4,131 | 4,131 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $9,704,766) | 9,704,766 | ||||
TOTAL INVESTMENT SECURITIES — 100.2% (Cost $755,718,067) | 987,598,369 | ||||
OTHER ASSETS AND LIABILITIES — (0.2)% | (1,684,886 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 985,913,483 |
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Consumer Discretionary | 20.8 | % |
Financials | 16.6 | % |
Information Technology | 14.6 | % |
Consumer Staples | 14.4 | % |
Industrials | 14.3 | % |
Materials | 7.2 | % |
Health Care | 7.1 | % |
Energy | 3.4 | % |
Telecommunication Services | 0.8 | % |
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.
7
Statement of Assets and Liabilities |
MAY 31, 2018 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $755,718,067) | $ | 987,598,369 | |
Foreign currency holdings, at value (cost of $442,875) | 444,017 | ||
Receivable for investments sold | 1,579,333 | ||
Dividends and interest receivable | 3,495,196 | ||
Other assets | 13,631 | ||
993,130,546 | |||
Liabilities | |||
Payable for investments purchased | 7,185,575 | ||
Accrued foreign taxes | 31,488 | ||
7,217,063 | |||
Net Assets | $ | 985,913,483 | |
G Class Capital Shares, $0.01 Par Value | |||
Shares authorized | 770,000,000 | ||
Shares outstanding | 77,384,070 | ||
Net Asset Value Per Share | $ | 12.74 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 677,880,362 | |
Undistributed net investment income | 8,109,225 | ||
Undistributed net realized gain | 68,079,249 | ||
Net unrealized appreciation | 231,844,647 | ||
$ | 985,913,483 |
See Notes to Financial Statements.
8
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $964,009) | $ | 11,603,921 | |
Interest | 34,429 | ||
11,638,350 | |||
Expenses: | |||
Management fees | 4,066,849 | ||
Directors' fees and expenses | 13,927 | ||
Other expenses | 68,720 | ||
4,149,496 | |||
Fees waived | (4,066,849 | ) | |
82,647 | |||
Net investment income (loss) | 11,555,703 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions (net of foreign tax expenses paid (refunded) of $(966)) | 71,817,229 | ||
Foreign currency translation transactions | (121,805 | ) | |
71,695,424 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $35,890) | (22,081,403 | ) | |
Translation of assets and liabilities in foreign currencies | (42,178 | ) | |
(22,123,581 | ) | ||
Net realized and unrealized gain (loss) | 49,571,843 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 61,127,546 |
See Notes to Financial Statements.
9
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2017 | ||||||
Increase (Decrease) in Net Assets | May 31, 2018 | November 30, 2017 | ||||
Operations | ||||||
Net investment income (loss) | $ | 11,555,703 | $ | 12,997,922 | ||
Net realized gain (loss) | 71,695,424 | 69,693,779 | ||||
Change in net unrealized appreciation (depreciation) | (22,123,581 | ) | 201,328,540 | |||
Net increase (decrease) in net assets resulting from operations | 61,127,546 | 284,020,241 | ||||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
G Class | (15,877,581 | ) | (7,905,118 | ) | ||
R6 Class | — | (1,009,740 | ) | |||
From net realized gains: | ||||||
G Class | (30,279,752 | ) | — | |||
Decrease in net assets from distributions | (46,157,333 | ) | (8,914,858 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (68,901,465 | ) | (164,632,252 | ) | ||
Net increase (decrease) in net assets | (53,931,252 | ) | 110,473,131 | |||
Net Assets | ||||||
Beginning of period | 1,039,844,735 | 929,371,604 | ||||
End of period | $ | 985,913,483 | $ | 1,039,844,735 | ||
Undistributed net investment income | $ | 8,109,225 | $ | 12,431,103 |
See Notes to Financial Statements.
10
Notes to Financial Statements |
MAY 31, 2018 (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 or the Bloomberg Industry Classification Standard for the tobacco industry. The fund offers the G Class. On July 31, 2017, all outstanding R6 Class shares were converted to G Class shares and the fund discontinued offering 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.
11
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.
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.
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. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
12
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc., and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 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). The agreement provides that all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on the daily net assets of the fund and paid monthly in arrears. 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 ranges from 0.700% to 1.150%. The investment advisor agreed to waive the fund’s management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors. The effective annual management fee for the period ended May 31, 2018 was 0.80% before waiver and 0.00% after waiver.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $398,224 and $271,924, respectively. The effect of interfund transactions on the Statement of Operations was $(1,436) 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, 2018 were $299,387,357 and $392,982,885, respectively.
13
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2018 | Year ended November 30, 2017 | |||||||||
Shares | Amount | Shares | Amount | |||||||
G Class/Shares Authorized | 770,000,000 | 770,000,000 | ||||||||
Sold | 1,918,869 | $ | 24,330,863 | 15,337,677 | $ | 172,998,742 | ||||
Issued in reinvestment of distributions | 3,761,239 | 46,157,333 | 826,031 | 7,905,118 | ||||||
Redeemed | (10,994,136 | ) | (139,389,661 | ) | (21,420,057 | ) | (240,387,705 | ) | ||
(5,314,028 | ) | (68,901,465 | ) | (5,256,349 | ) | (59,483,845 | ) | |||
R6 Class/Shares Authorized | N/A | N/A | ||||||||
Sold | 2,848,050 | 28,985,767 | ||||||||
Issued in reinvestment of distributions | 105,511 | 1,009,740 | ||||||||
Redeemed | (11,680,227 | ) | (135,143,914 | ) | ||||||
(8,726,666 | ) | (105,148,407 | ) | |||||||
Net increase (decrease) | (5,314,028 | ) | $ | (68,901,465 | ) | (13,983,015 | ) | $ | (164,632,252 | ) |
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 | ||||||||
China | $ | 29,708,201 | $ | 21,360,651 | — | |||
Ireland | 13,330,113 | 21,998,535 | — | |||||
Netherlands | 8,309,463 | 35,001,185 | — | |||||
Russia | 7,853,401 | — | — | |||||
Other Countries | — | 840,332,054 | — | |||||
Temporary Cash Investments | 4,131 | 9,700,635 | — | |||||
$ | 59,205,309 | $ | 928,393,060 | — |
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 | $ | 756,888,031 | |
Gross tax appreciation of investments | $ | 241,864,591 | |
Gross tax depreciation of investments | (11,154,253 | ) | |
Net tax appreciation (depreciation) of investments | $ | 230,710,338 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
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: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
G Class | |||||||||||||||||
2018(3) | $12.57 | 0.14 | 0.60 | 0.74 | (0.20) | (0.37) | (0.57) | $12.74 | 6.05% | 0.02%(4) | 0.82%(4) | 2.28%(4) | 1.48%(4) | 30% | $985,913 | ||
2017 | $9.61 | 0.14 | 2.91 | 3.05 | (0.09) | — | (0.09) | $12.57 | 32.02% | 0.61% | 0.91% | 1.26% | 0.96% | 57% | $1,039,845 | ||
2016 | $10.95 | 0.10 | (1.02) | (0.92) | (0.08) | (0.34) | (0.42) | $9.61 | (8.69)% | 0.98% | 0.98% | 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% | 0.97% | 0.69% | 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% | 0.98% | 0.86% | 0.86% | 67% | $938,672 | ||
2013 | $9.94 | 0.11 | 2.27 | 2.38 | (0.15) | — | (0.15) | $12.17 | 24.27% | 1.02% | 1.02% | 1.01% | 1.01% | 89% | $771,045 |
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, 2018 (unaudited). |
(4) | Annualized. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
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.
17
Notes |
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. | ||
©2018 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92627 1807 |
![acihorizblkd26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/acihorizblkd26.jpg)
Semiannual Report | |
May 31, 2018 | |
NT International Small-Mid Cap Fund | |
Investor Class (ANTSX) | |
G Class (ANTMX) |
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, 2018 | |
Top Ten Holdings | % of net assets |
Burford Capital Ltd. | 1.8% |
Aroundtown SA | 1.8% |
Tokai Carbon Co. Ltd. | 1.7% |
Bombardier, Inc., B Shares | 1.6% |
Melco International Development Ltd. | 1.5% |
Ubisoft Entertainment SA | 1.5% |
Entertainment One Ltd. | 1.5% |
Segro plc | 1.5% |
BRP, Inc. | 1.4% |
China Resources Beer Holdings Co. Ltd. | 1.4% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 98.3% |
Temporary Cash Investments | 1.4% |
Other Assets and Liabilities | 0.3% |
Investments by Country | % of net assets |
Japan | 22.4% |
United Kingdom | 21.3% |
Canada | 8.2% |
France | 7.9% |
Germany | 6.2% |
Australia | 4.6% |
Spain | 3.3% |
Netherlands | 3.1% |
Switzerland | 2.4% |
Hong Kong | 2.3% |
Belgium | 2.2% |
Norway | 2.2% |
China | 2.2% |
Italy | 2.1% |
Other Countries | 7.9% |
Cash and Equivalents* | 1.7% |
*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, 2017 to May 31, 2018.
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 12/1/17 | Ending Account Value 5/31/18 | Expenses Paid During Period(1) 12/1/17 - 5/31/18 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,089.60 | $7.71 | 1.48% |
G Class | $1,000 | $1,097.10 | $0.05 | 0.01% |
Hypothetical | ||||
Investor Class | $1,000 | $1,017.55 | $7.44 | 1.48% |
G Class | $1,000 | $1,024.88 | $0.05 | 0.01% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
3
Schedule of Investments |
MAY 31, 2018 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 98.3% | |||||
Australia — 4.6% | |||||
ALS Ltd. | 220,290 | $ | 1,243,559 | ||
Corporate Travel Management Ltd. | 143,120 | 2,656,595 | |||
Kogan.com Ltd. | 89,537 | 612,109 | |||
NEXTDC Ltd.(1) | 441,809 | 2,488,770 | |||
Sandfire Resources NL | 275,140 | 1,800,777 | |||
Treasury Wine Estates Ltd. | 194,939 | 2,436,604 | |||
11,238,414 | |||||
Austria — 0.6% | |||||
FACC AG(1) | 73,365 | 1,409,035 | |||
Belgium — 2.2% | |||||
Galapagos NV(1) | 24,369 | 2,468,736 | |||
Umicore SA | 52,740 | 2,974,170 | |||
5,442,906 | |||||
Canada — 8.2% | |||||
Bombardier, Inc., B Shares(1) | 1,015,290 | 3,821,236 | |||
BRP, Inc. | 73,215 | 3,410,601 | |||
Colliers International Group, Inc. | 32,300 | 2,330,204 | |||
Kirkland Lake Gold Ltd. | 155,970 | 2,867,750 | |||
Parex Resources, Inc.(1) | 119,350 | 2,154,854 | |||
Premium Brands Holdings Corp. | 31,210 | 2,793,158 | |||
Trevali Mining Corp.(1) | 1,205,230 | 985,303 | |||
Trican Well Service Ltd.(1) | 695,300 | 1,715,996 | |||
20,079,102 | |||||
China — 2.2% | |||||
China Resources Beer Holdings Co. Ltd. | 692,000 | 3,357,647 | |||
China Resources Cement Holdings Ltd. | 1,752,000 | 2,049,325 | |||
5,406,972 | |||||
Denmark — 1.8% | |||||
DSV A/S | 26,474 | 2,199,518 | |||
Topdanmark A/S | 51,164 | 2,296,520 | |||
4,496,038 | |||||
Finland — 0.1% | |||||
Outotec Oyj(1) | 17,352 | 162,225 | |||
France — 7.9% | |||||
Euronext NV | 28,890 | 1,848,949 | |||
Fnac Darty SA(1) | 25,610 | 2,690,748 | |||
Rubis SCA | 30,676 | 2,160,695 | |||
SOITEC(1) | 22,529 | 2,082,546 | |||
Solutions 30 SE(1) | 39,837 | 1,875,274 | |||
Teleperformance | 12,417 | 1,962,659 | |||
Trigano SA | 8,980 | 1,797,997 | |||
Ubisoft Entertainment SA(1) | 34,091 | 3,724,280 | |||
Worldline SA(1) | 23,860 | 1,376,931 | |||
19,520,079 |
4
Shares | Value | ||||
Germany — 6.2% | |||||
1&1 Drillisch AG | 17,145 | $ | 1,186,591 | ||
Aroundtown SA | 542,439 | 4,513,168 | |||
AURELIUS Equity Opportunities SE & Co. KGaA | 26,210 | 1,747,899 | |||
Jungheinrich AG, Preference Shares | 40,430 | 1,581,072 | |||
Rheinmetall AG | 13,261 | 1,692,574 | |||
Scout24 AG | 47,370 | 2,427,941 | |||
Wacker Chemie AG | 12,690 | 2,063,113 | |||
15,212,358 | |||||
Hong Kong — 2.3% | |||||
Health and Happiness H&H International Holdings Ltd.(1) | 238,000 | 1,868,872 | |||
Melco International Development Ltd. | 1,055,000 | 3,805,711 | |||
5,674,583 | |||||
Ireland — 1.0% | |||||
Cairn Homes plc(1) | 1,158,533 | 2,429,940 | |||
Israel — 1.7% | |||||
Frutarom Industries Ltd. | 12,510 | 1,221,615 | |||
Nice Ltd. ADR(1) | 28,920 | 3,058,290 | |||
4,279,905 | |||||
Italy — 2.1% | |||||
Biesse SpA | 30,900 | 1,372,500 | |||
FinecoBank Banca Fineco SpA | 45,200 | 451,303 | |||
IMA Industria Macchine Automatiche SpA | 16,880 | 1,640,785 | |||
Saras SpA | 770,020 | 1,737,209 | |||
5,201,797 | |||||
Japan — 22.4% | |||||
Anritsu Corp. | 218,600 | 2,912,631 | |||
Cosmos Pharmaceutical Corp. | 8,800 | 1,891,882 | |||
Daifuku Co. Ltd. | 27,000 | 1,392,293 | |||
Don Quijote Holdings Co. Ltd. | 25,000 | 1,326,798 | |||
Hitachi Construction Machinery Co. Ltd. | 39,800 | 1,458,957 | |||
Ichikoh Industries Ltd. | 211,900 | 2,799,506 | |||
Kose Corp. | 9,500 | 2,059,128 | |||
Maruwa Co. Ltd. | 23,200 | 1,843,645 | |||
Nextage Co. Ltd. | 120,100 | 1,368,516 | |||
Nihon Kohden Corp. | 27,500 | 761,854 | |||
OSAKA Titanium Technologies Co. Ltd. | 39,300 | 681,452 | |||
Outsourcing, Inc. | 158,600 | 3,014,434 | |||
Penta-Ocean Construction Co. Ltd. | 167,800 | 1,088,829 | |||
PeptiDream, Inc.(1) | 33,600 | 1,452,348 | |||
Pressance Corp. | 154,000 | 2,480,742 | |||
Relo Group, Inc. | 87,200 | 2,239,074 | |||
Round One Corp. | 135,100 | 2,374,041 | |||
Sanwa Holdings Corp. | 102,500 | 1,116,370 | |||
Seino Holdings Co. Ltd. | 107,100 | 2,010,477 | |||
Seria Co. Ltd. | 24,800 | 1,192,867 | |||
SHO-BOND Holdings Co. Ltd. | 21,600 | 1,445,930 | |||
Start Today Co. Ltd. | 71,600 | 2,477,745 | |||
SUMCO Corp. | 62,700 | 1,510,977 | |||
Taiyo Yuden Co. Ltd. | 59,900 | 1,345,854 | |||
Tateru, Inc. | 93,600 | 1,825,701 |
5
Shares | Value | ||||
THK Co. Ltd. | 83,000 | $ | 2,931,767 | ||
TKP Corp.(1) | 36,600 | 1,803,543 | |||
Tokai Carbon Co. Ltd. | 209,100 | 4,265,433 | |||
Tsubaki Nakashima Co. Ltd. | 77,000 | 1,915,181 | |||
54,987,975 | |||||
Netherlands — 3.1% | |||||
AMG Advanced Metallurgical Group NV | 47,800 | 2,739,877 | |||
BE Semiconductor Industries NV | 57,160 | 1,915,945 | |||
InterXion Holding NV(1) | 45,328 | 2,894,646 | |||
7,550,468 | |||||
New Zealand — 0.8% | |||||
a2 Milk Co. Ltd.(1) | 279,420 | 2,086,005 | |||
Norway — 2.2% | |||||
Aker BP ASA | 33,910 | 1,234,511 | |||
Borr Drilling Ltd.(1) | 341,495 | 1,748,770 | |||
Petroleum Geo-Services ASA(1) | 510,206 | 2,445,752 | |||
5,429,033 | |||||
Singapore — 0.1% | |||||
Venture Corp. Ltd. | 23,700 | 371,091 | |||
Spain — 3.3% | |||||
Cellnex Telecom SA | 101,406 | 2,584,312 | |||
Ence Energia y Celulosa SA | 229,730 | 1,804,621 | |||
Masmovil Ibercom SA(1) | 8,795 | 1,210,321 | |||
NH Hotel Group SA | 328,701 | 2,467,996 | |||
8,067,250 | |||||
Sweden — 1.8% | |||||
Dometic Group AB | 327,200 | 3,354,448 | |||
Elekta AB, B Shares | 95,534 | 1,164,763 | |||
4,519,211 | |||||
Switzerland — 2.4% | |||||
GAM Holding AG | 168,777 | 2,528,300 | |||
Georg Fischer AG | 1,930 | 2,491,247 | |||
Partners Group Holding AG | 1,350 | 972,988 | |||
5,992,535 | |||||
United Kingdom — 21.3% | |||||
Ashtead Group plc | 57,660 | 1,779,278 | |||
ASOS plc(1) | 28,670 | 2,524,500 | |||
Aveva Group plc | 74,706 | 2,357,786 | |||
B&M European Value Retail SA | 340,833 | 1,822,928 | |||
Beazley plc | 253,002 | 2,011,400 | |||
Bellway plc | 53,300 | 2,326,682 | |||
Burford Capital Ltd. | 214,149 | 4,532,558 | |||
Coca-Cola HBC AG(1) | 69,460 | 2,373,494 | |||
Dechra Pharmaceuticals plc | 66,920 | 2,477,910 | |||
Entertainment One Ltd. | 921,352 | 3,669,981 | |||
Fevertree Drinks plc | 58,100 | 2,320,394 | |||
Howden Joinery Group plc | 243,690 | 1,623,761 | |||
Intermediate Capital Group plc | 176,130 | 2,678,124 | |||
KAZ Minerals plc(1) | 129,460 | 1,743,951 | |||
Keywords Studios plc | 105,427 | 2,388,340 | |||
NMC Health plc | 51,130 | 2,396,009 |
6
Shares | Value | ||||
Sanne Group plc | 164,477 | $ | 1,395,099 | ||
Segro plc | 416,770 | 3,627,417 | |||
UNITE Group plc (The) | 268,780 | 3,035,436 | |||
Vivo Energy plc(1) | 263,250 | 612,415 | |||
Weir Group plc (The) | 80,390 | 2,342,346 | |||
Wizz Air Holdings plc(1) | 51,930 | 2,343,067 | |||
52,382,876 | |||||
TOTAL COMMON STOCKS (Cost $204,568,680) | 241,939,798 | ||||
TEMPORARY CASH INVESTMENTS — 1.4% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 8/31/18 - 8/15/44, valued at $1,904,295), in a joint trading account at 1.50%, dated 5/31/18, due 6/1/18 (Delivery value $1,857,785) | 1,857,708 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.75%, 11/15/43, valued at $1,581,089), at 0.74%, dated 5/31/18, due 6/1/18 (Delivery value $1,548,032) | 1,548,000 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 1,940 | 1,940 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $3,407,648) | 3,407,648 | ||||
TOTAL INVESTMENT SECURITIES — 99.7% (Cost $207,976,328) | 245,347,446 | ||||
OTHER ASSETS AND LIABILITIES — 0.3% | 629,749 | ||||
TOTAL NET ASSETS — 100.0% | $ | 245,977,195 |
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Consumer Discretionary | 20.1 | % |
Industrials | 18.2 | % |
Information Technology | 14.2 | % |
Materials | 10.1 | % |
Consumer Staples | 8.6 | % |
Financials | 8.2 | % |
Real Estate | 7.0 | % |
Energy | 4.5 | % |
Health Care | 4.4 | % |
Telecommunication Services | 2.1 | % |
Utilities | 0.9 | % |
Cash and Equivalents* | 1.7 | % |
*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.
7
Statement of Assets and Liabilities |
MAY 31, 2018 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $207,976,328) | $ | 245,347,446 | |
Foreign currency holdings, at value (cost of $58,121) | 58,138 | ||
Receivable for investments sold | 5,820,766 | ||
Dividends and interest receivable | 595,661 | ||
251,822,011 | |||
Liabilities | |||
Payable for investments purchased | 5,740,801 | ||
Accrued management fees | 104,015 | ||
5,844,816 | |||
Net Assets | $ | 245,977,195 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 171,674,019 | |
Distributions in excess of net investment income | (467,694 | ) | |
Undistributed net realized gain | 37,407,505 | ||
Net unrealized appreciation | 37,363,365 | ||
$ | 245,977,195 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $83,382,067 | 6,216,990 | $13.41 | |||
G Class, $0.01 Par Value | $162,595,128 | 12,033,173 | $13.51 |
See Notes to Financial Statements.
8
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $243,289) | $ | 2,377,885 | |
Interest | 12,970 | ||
2,390,855 | |||
Expenses: | |||
Management fees | 1,528,460 | ||
Directors' fees and expenses | 3,392 | ||
Other expenses | 3,486 | ||
1,535,338 | |||
Fees waived - G Class | (932,054 | ) | |
603,284 | |||
Net investment income (loss) | 1,787,571 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 37,560,353 | ||
Foreign currency translation transactions | (27,290 | ) | |
37,533,063 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | (16,796,783 | ) | |
Translation of assets and liabilities in foreign currencies | (13,810 | ) | |
(16,810,593 | ) | ||
Net realized and unrealized gain (loss) | 20,722,470 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 22,510,041 |
See Notes to Financial Statements.
9
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2017 | ||||||
Increase (Decrease) in Net Assets | May 31, 2018 | November 30, 2017 | ||||
Operations | ||||||
Net investment income (loss) | $ | 1,787,571 | $ | 859,795 | ||
Net realized gain (loss) | 37,533,063 | 30,770,432 | ||||
Change in net unrealized appreciation (depreciation) | (16,810,593 | ) | 38,759,498 | |||
Net increase (decrease) in net assets resulting from operations | 22,510,041 | 70,389,725 | ||||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (642,127 | ) | — | |||
G Class | (2,444,257 | ) | (229,198 | ) | ||
R6 Class | — | (48,848 | ) | |||
From net realized gains: | ||||||
Investor Class | (4,572,779 | ) | — | |||
G Class | (9,726,151 | ) | — | |||
Decrease in net assets from distributions | (17,385,314 | ) | (278,046 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (8,585,678 | ) | (31,989,073 | ) | ||
Net increase (decrease) in net assets | (3,460,951 | ) | 38,122,606 | |||
Net Assets | ||||||
Beginning of period | 249,438,146 | 211,315,540 | ||||
End of period | $ | 245,977,195 | $ | 249,438,146 | ||
Undistributed (distributions in excess of) net investment income | $ | (467,694 | ) | $ | 831,119 |
See Notes to Financial Statements.
10
Notes to Financial Statements |
MAY 31, 2018 (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 or the Bloomberg Industry Classification Standard for the tobacco industry. The fund offers the Investor Class and G Class. On July 31, 2017, all outstanding R6 Class shares were converted to G Class shares and the fund discontinued offering 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
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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., 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 brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services, 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 investment advisor agreed to waive the G Class’s management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors.
The annual management fee for each class is as follows:
Investor Class | G Class |
1.47% | 0.00%(1) |
(1) | Annual management fee before waiver was 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, 2018 were $174,837,401 and $197,521,722, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2018 | Year ended November 30, 2017 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 80,000,000 | 80,000,000 | ||||||||
Sold | 82,613 | $ | 1,072,961 | 185,865 | $ | 1,926,572 | ||||
Issued in reinvestment of distributions | 404,215 | 5,214,906 | — | — | ||||||
Redeemed | (81,134 | ) | (1,058,906 | ) | (668,963 | ) | (8,684,935 | ) | ||
405,694 | 5,228,961 | (483,098 | ) | (6,758,363 | ) | |||||
G Class/Shares Authorized | 140,000,000 | 140,000,000 | ||||||||
Sold | 267,235 | 3,607,746 | 2,156,750 | 25,135,249 | ||||||
Issued in reinvestment of distributions | 935,115 | 12,170,408 | 23,435 | 229,198 | ||||||
Redeemed | (2,226,218 | ) | (29,592,793 | ) | (2,806,216 | ) | (33,432,000 | ) | ||
(1,023,868 | ) | (13,814,639 | ) | (626,031 | ) | (8,067,553 | ) | |||
R6 Class/Shares Authorized | N/A | N/A | ||||||||
Sold | 442,046 | 4,634,032 | ||||||||
Issued in reinvestment of distributions | 4,995 | 48,848 | ||||||||
Redeemed | (1,837,661 | ) | (21,846,037 | ) | ||||||
(1,390,620 | ) | (17,163,157 | ) | |||||||
Net increase (decrease) | (618,174 | ) | $ | (8,585,678 | ) | (2,499,749 | ) | $ | (31,989,073 | ) |
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 | $ | 5,952,936 | $ | 235,986,862 | — | |||
Temporary Cash Investments | 1,940 | 3,405,708 | — | |||||
$ | 5,954,876 | $ | 239,392,570 | — |
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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.
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 | $ | 208,269,718 | |
Gross tax appreciation of investments | $ | 43,381,663 | |
Gross tax depreciation of investments | (6,303,935 | ) | |
Net tax appreciation (depreciation) of investments | $ | 37,077,728 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended 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 | |||||||||||||||
2018(3) | $13.16 | 0.03 | 1.10 | 1.13 | (0.11) | (0.77) | (0.88) | $13.41 | 8.96% | 1.48%(4) | 0.45%(4) | 71% | $83,382 | ||
2017 | $9.88 | (0.01) | 3.29 | 3.28 | — | — | — | $13.16 | 33.20% | 1.48% | (0.10)% | 122% | $76,484 | ||
2016 | $10.29 | (0.01) | (0.33) | (0.34) | (0.07) | — | (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 | ||
G Class | |||||||||||||||
2018(3) | $13.25 | 0.13 | 1.10 | 1.23 | (0.20) | (0.77) | (0.97) | $13.51 | 9.71% | 0.01%(4)(6) | 1.92%(4)(6) | 71% | $162,595 | ||
2017 | $9.89 | 0.06 | 3.32 | 3.38 | (0.02) | — | (0.02) | $13.25 | 34.20% | 0.80%(7) | 0.58%(7) | 122% | $172,954 | ||
2016 | $10.30 | 0.01 | (0.33) | (0.32) | (0.09) | — | (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 |
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, 2018 (unaudited). |
(4) | Annualized. |
(5) | March 19, 2015 (fund inception) through November 30, 2015. |
(6) | The annualized ratio of operating expenses to average net assets before expense waiver and the annualized ratio of net investment income (loss) to average net assets before expense waiver was 1.13% and 0.80%, respectively. |
(7) | The ratio of operating expenses to average net assets before expense waiver and the ratio of net investment income (loss) to average net assets before expense waiver was 1.22% and 0.16%, respectively. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
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 |
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Notes |
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century 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. | ||
©2018 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92628 1807 |
![acihorizblkd26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-18-000059/acihorizblkd26.jpg)
Semiannual Report | |
May 31, 2018 | |
NT International Value Fund | |
Investor Class (ANTVX) | |
G Class (ANTYX) |
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, 2018 | |
Top Ten Holdings | % of net assets |
Royal Dutch Shell plc, B Shares | 4.0% |
HSBC Holdings plc | 2.6% |
GlaxoSmithKline plc | 2.3% |
Rio Tinto plc | 1.8% |
Toyota Motor Corp. | 1.7% |
BNP Paribas SA | 1.6% |
Novartis AG | 1.6% |
TOTAL SA | 1.5% |
ING Groep NV | 1.4% |
BHP Billiton plc | 1.4% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 95.9% |
Exchange-Traded Funds | 1.6% |
Total Equity Exposure | 97.5% |
Temporary Cash Investments | 1.6% |
Other Assets and Liabilities | 0.9% |
Investments by Country | % of net assets |
Japan | 23.1% |
United Kingdom | 22.7% |
France | 7.6% |
Germany | 5.6% |
Switzerland | 5.0% |
Spain | 4.6% |
Italy | 3.6% |
Netherlands | 3.1% |
Australia | 3.1% |
Norway | 2.5% |
Singapore | 2.2% |
Hong Kong | 2.1% |
Other Countries | 10.7% |
Exchange-Traded Funds* | 1.6% |
Cash and Equivalents** | 2.5% |
*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. |
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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, 2017 to May 31, 2018.
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 12/1/17 | Ending Account Value 5/31/18 | Expenses Paid During Period(1) 12/1/17 - 5/31/18 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $984.20 | $6.38 | 1.29% |
G Class | $1,000 | $991.00 | $0.05 | 0.01% |
Hypothetical | ||||
Investor Class | $1,000 | $1,018.50 | $6.49 | 1.29% |
G Class | $1,000 | $1,024.88 | $0.05 | 0.01% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
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Schedule of Investments |
MAY 31, 2018 (UNAUDITED)
Shares | Value | ||||
COMMON STOCKS — 95.9% | |||||
Australia — 3.1% | |||||
Aristocrat Leisure Ltd. | 42,789 | $ | 968,852 | ||
Australia & New Zealand Banking Group Ltd. | 417,855 | 8,573,760 | |||
CIMIC Group Ltd. | 39,186 | 1,217,076 | |||
Commonwealth Bank of Australia | 96,501 | 5,050,118 | |||
Qantas Airways Ltd. | 802,467 | 3,843,674 | |||
Regis Resources Ltd. | 291,032 | 1,038,690 | |||
South32 Ltd. | 305,989 | 857,106 | |||
Wesfarmers Ltd. | 81,781 | 2,810,088 | |||
Westpac Banking Corp. | 109,726 | 2,303,772 | |||
Whitehaven Coal Ltd. | 402,211 | 1,592,477 | |||
28,255,613 | |||||
Austria — 1.1% | |||||
Erste Group Bank AG(1) | 84,770 | 3,509,790 | |||
OMV AG | 93,302 | 5,317,235 | |||
Raiffeisen Bank International AG(1) | 41,131 | 1,288,039 | |||
10,115,064 | |||||
Belgium — 0.6% | |||||
KBC Group NV | 65,631 | 5,079,756 | |||
Brazil — 0.5% | |||||
Banco Santander Brasil SA ADR | 132,294 | 1,184,031 | |||
Petroleo Brasileiro SA ADR | 369,734 | 3,771,287 | |||
4,955,318 | |||||
China — 1.5% | |||||
China Construction Bank Corp., H Shares | 5,727,000 | 5,768,389 | |||
China Huarong Asset Management Co. Ltd., H Shares | 4,303,000 | 1,441,151 | |||
Industrial & Commercial Bank of China Ltd., H Shares | 3,996,000 | 3,287,411 | |||
Ping An Insurance Group Co. of China Ltd., H Shares | 169,000 | 1,644,492 | |||
Tencent Holdings Ltd. | 34,900 | 1,759,227 | |||
13,900,670 | |||||
Denmark — 0.6% | |||||
H Lundbeck A/S | 59,488 | 4,198,211 | |||
Topdanmark A/S | 23,241 | 1,043,183 | |||
5,241,394 | |||||
Finland — 1.5% | |||||
UPM-Kymmene Oyj | 294,435 | 10,812,752 | |||
Valmet Oyj | 158,514 | 2,920,833 | |||
13,733,585 | |||||
France — 7.6% | |||||
BNP Paribas SA | 236,800 | 14,764,426 | |||
CNP Assurances | 297,588 | 6,956,097 | |||
Eiffage SA | 38,693 | 4,354,852 |
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Shares | Value | ||||
Engie SA | 310,470 | $ | 4,939,229 | ||
Eutelsat Communications SA | 150,078 | 2,894,209 | |||
Metropole Television SA | 60,877 | 1,287,419 | |||
Orange SA | 299,892 | 5,154,657 | |||
Peugeot SA | 134,832 | 3,156,955 | |||
Sanofi | 65,372 | 5,014,991 | |||
Societe Generale SA | 126,503 | 5,473,232 | |||
TOTAL SA | 223,790 | 13,600,666 | |||
Veolia Environnement SA | 78,390 | 1,787,774 | |||
69,384,507 | |||||
Germany — 5.6% | |||||
Allianz SE | 37,937 | 7,827,624 | |||
BASF SE | 53,989 | 5,320,867 | |||
Covestro AG | 77,418 | 7,060,471 | |||
Daimler AG | 32,874 | 2,371,494 | |||
Deutsche Lufthansa AG | 156,825 | 4,264,804 | |||
Deutsche Telekom AG | 176,788 | 2,732,838 | |||
Hamburger Hafen und Logistik AG | 38,203 | 930,458 | |||
HUGO BOSS AG | 28,495 | 2,562,074 | |||
ProSiebenSat.1 Media SE | 111,542 | 3,282,554 | |||
Rheinmetall AG | 18,232 | 2,327,050 | |||
Schaeffler AG Preference Shares | 380,414 | 5,698,562 | |||
Siemens AG | 42,887 | 5,593,783 | |||
Vonovia SE | 23,451 | 1,106,983 | |||
51,079,562 | |||||
Hong Kong — 2.1% | |||||
Health and Happiness H&H International Holdings Ltd.(1) | 136,500 | 1,071,853 | |||
Kerry Properties Ltd. | 564,000 | 3,013,686 | |||
PCCW Ltd. | 6,714,000 | 3,952,548 | |||
Sands China Ltd. | 518,400 | 3,083,912 | |||
Wharf Holdings Ltd. (The) | 1,933,000 | 6,240,969 | |||
Wheelock & Co. Ltd. | 257,000 | 1,930,484 | |||
19,293,452 | |||||
India — 1.0% | |||||
Tata Power Co. Ltd. (The) | 2,218,401 | 2,668,416 | |||
Tata Steel Ltd. | 484,558 | 4,116,730 | |||
Yes Bank Ltd. | 539,093 | 2,756,221 | |||
9,541,367 | |||||
Indonesia — 0.3% | |||||
Adaro Energy Tbk PT | 9,928,400 | 1,341,382 | |||
Bank Negara Indonesia Persero Tbk PT | 1,923,800 | 1,169,776 | |||
2,511,158 | |||||
Israel — 0.3% | |||||
Bank Leumi Le-Israel BM | 516,321 | 3,215,949 | |||
Italy — 3.6% | |||||
Assicurazioni Generali SpA | 337,453 | 5,742,914 | |||
Enel SpA | 436,711 | 2,398,374 |
5
Shares | Value | ||||
Eni SpA | 272,004 | $ | 4,969,339 | ||
EXOR NV | 106,770 | 7,863,436 | |||
Fiat Chrysler Automobiles NV(1) | 378,519 | 8,577,364 | |||
Italgas SpA | 355,741 | 1,853,089 | |||
Terna Rete Elettrica Nazionale SpA | 287,617 | 1,522,287 | |||
32,926,803 | |||||
Japan — 23.1% | |||||
Astellas Pharma, Inc. | 458,800 | 7,002,236 | |||
Brother Industries Ltd. | 223,000 | 4,637,575 | |||
Canon, Inc. | 242,400 | 8,267,348 | |||
cocokara fine, Inc. | 11,200 | 828,853 | |||
Daiichikosho Co., Ltd. | 53,900 | 2,508,874 | |||
Daiwa Securities Group, Inc. | 436,000 | 2,522,327 | |||
Eisai Co. Ltd. | 14,500 | 1,046,130 | |||
Haseko Corp. | 76,500 | 1,158,259 | |||
Hitachi Construction Machinery Co. Ltd. | 91,000 | 3,335,807 | |||
Honda Motor Co. Ltd. | 123,300 | 3,918,379 | |||
Kajima Corp. | 701,000 | 5,699,927 | |||
Kansai Electric Power Co., Inc. (The) | 123,800 | 1,773,252 | |||
KDDI Corp. | 335,200 | 9,048,898 | |||
Kirin Holdings Co. Ltd. | 182,500 | 5,165,050 | |||
Lawson, Inc. | 47,600 | 3,097,156 | |||
Leopalace21 Corp. | 637,900 | 4,388,844 | |||
Marubeni Corp. | 116,300 | 903,435 | |||
Mebuki Financial Group, Inc. | 1,929,100 | 6,996,462 | |||
Meitec Corp. | 14,900 | 683,653 | |||
Mitsubishi Chemical Holdings Corp. | 571,000 | 5,263,565 | |||
Mitsubishi Corp. | 157,000 | 4,357,041 | |||
Mitsubishi UFJ Financial Group, Inc. | 1,566,200 | 9,358,119 | |||
Mizuho Financial Group, Inc. | 1,612,100 | 2,802,965 | |||
MS&AD Insurance Group Holdings, Inc. | 75,200 | 2,387,422 | |||
Nichias Corp. | 119,000 | 1,482,379 | |||
Nihon Unisys Ltd. | 118,500 | 2,961,910 | |||
Nippon Telegraph & Telephone Corp. | 177,700 | 8,321,278 | |||
NTT DOCOMO, Inc. | 265,900 | 6,873,545 | |||
Oji Holdings Corp. | 532,000 | 3,484,863 | |||
ORIX Corp. | 301,800 | 5,044,718 | |||
SBI Holdings, Inc. | 63,200 | 1,714,395 | |||
Sega Sammy Holdings, Inc. | 471,800 | 8,303,015 | |||
Sony Corp. | 62,400 | 2,942,209 | |||
Square Enix Holdings Co. Ltd. | 93,800 | 4,652,343 | |||
Subaru Corp. | 132,800 | 4,053,107 | |||
Sumitomo Dainippon Pharma Co., Ltd. | 273,800 | 5,673,534 | |||
Sumitomo Mitsui Financial Group, Inc. | 114,800 | 4,741,286 | |||
Suzuken Co. Ltd. | 74,100 | 3,314,741 | |||
Suzuki Motor Corp. | 137,900 | 7,904,753 | |||
Taisei Corp. | 154,900 | 8,477,002 |
6
Shares | Value | ||||
Takeda Pharmaceutical Co., Ltd. | 71,000 | $ | 2,894,306 | ||
Tokuyama Corp. | 46,700 | 1,658,232 | |||
Toyota Boshoku Corp. | 154,200 | 2,918,727 | |||
Toyota Motor Corp. | 243,500 | 15,412,434 | |||
Trend Micro, Inc. | 34,000 | 1,917,660 | |||
TS Tech Co. Ltd. | 177,700 | 7,793,123 | |||
Ulvac, Inc. | 35,800 | 1,582,568 | |||
211,273,705 | |||||
Malaysia — 0.5% | |||||
CIMB Group Holdings Bhd | 2,243,300 | 3,291,525 | |||
Malayan Banking Bhd | 661,800 | 1,599,655 | |||
4,891,180 | |||||
Netherlands — 3.1% | |||||
ABN AMRO Group NV CVA | 146,596 | 3,812,569 | |||
Aegon NV | 568,218 | 3,528,931 | |||
ASR Nederland NV | 116,179 | 4,926,535 | |||
ING Groep NV | 874,178 | 12,703,763 | |||
Koninklijke Ahold Delhaize NV | 150,637 | 3,464,962 | |||
28,436,760 | |||||
Norway — 2.5% | |||||
Aker BP ASA | 168,652 | 6,139,865 | |||
Equinor ASA | 409,040 | 10,738,295 | |||
Telenor ASA | 276,004 | 5,684,376 | |||
22,562,536 | |||||
Poland — 0.5% | |||||
Powszechny Zaklad Ubezpieczen SA | 434,478 | 4,261,330 | |||
Singapore — 2.2% | |||||
ComfortDelGro Corp. Ltd. | 639,800 | 1,172,976 | |||
DBS Group Holdings Ltd. | 36,600 | 772,014 | |||
Oversea-Chinese Banking Corp. Ltd. | 919,100 | 8,564,089 | |||
StarHub Ltd. | 623,400 | 898,308 | |||
United Overseas Bank Ltd. | 409,000 | 8,561,063 | |||
19,968,450 | |||||
South Korea — 1.5% | |||||
GS Holdings Corp. | 15,861 | 856,346 | |||
Hanwha Corp. | 48,193 | 1,604,811 | |||
Hyundai Marine & Fire Insurance Co. Ltd. | 22,312 | 703,994 | |||
Samsung Electronics Co. Ltd. | 82,900 | 3,891,415 | |||
SK Hynix, Inc. | 55,164 | 4,755,657 | |||
SK Innovation Co. Ltd. | 10,861 | 2,071,405 | |||
13,883,628 | |||||
Spain — 4.6% | |||||
Abertis Infraestructuras SA | 72,672 | 1,559,947 | |||
Banco Bilbao Vizcaya Argentaria SA | 983,090 | 6,711,362 | |||
Banco Santander SA | 1,280,526 | 6,870,056 | |||
Endesa SA | 87,177 | 1,927,722 | |||
Mapfre SA | 1,889,023 | 5,747,087 |
7
Shares | Value | ||||
Repsol SA | 516,000 | $ | 9,815,631 | ||
Telefonica SA | 1,064,439 | 9,394,880 | |||
42,026,685 | |||||
Switzerland — 5.0% | |||||
Nestle SA | 47,996 | 3,617,475 | |||
Novartis AG | 195,457 | 14,501,667 | |||
Roche Holding AG | 30,860 | 6,618,932 | |||
Swisscom AG | 17,348 | 7,726,653 | |||
UBS Group AG | 26,871 | 403,785 | |||
Zurich Insurance Group AG | 42,311 | 12,566,410 | |||
45,434,922 | |||||
Taiwan — 0.8% | |||||
AU Optronics Corp. | 6,998,000 | 3,060,138 | |||
Catcher Technology Co. Ltd. | 129,000 | 1,493,053 | |||
Shin Kong Financial Holding Co. Ltd. | 4,451,000 | 1,773,682 | |||
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 18,059 | 698,883 | |||
7,025,756 | |||||
United Kingdom — 22.7% | |||||
3i Group plc | 684,755 | 8,677,930 | |||
Anglo American plc | 182,480 | 4,361,381 | |||
BAE Systems plc | 436,291 | 3,709,361 | |||
BHP Billiton plc | 547,325 | 12,584,605 | |||
BP plc | 1,170,702 | 8,971,645 | |||
BT Group plc | 530,679 | 1,445,616 | |||
Centamin plc | 287,814 | 493,052 | |||
Centrica plc | 3,647,184 | 7,074,217 | |||
Direct Line Insurance Group plc | 468,787 | 2,226,212 | |||
Evraz plc | 533,748 | 3,625,325 | |||
GlaxoSmithKline plc | 1,026,569 | 20,798,092 | |||
HSBC Holdings plc | 2,448,713 | 23,462,491 | |||
International Consolidated Airlines Group SA | 838,942 | 7,601,247 | |||
Investec plc | 754,915 | 5,577,394 | |||
Legal & General Group plc | 851,881 | 3,056,165 | |||
Lloyds Banking Group plc | 2,924,928 | 2,458,225 | |||
Marks & Spencer Group plc | 519,733 | 1,959,520 | |||
Next plc | 51,996 | 4,009,731 | |||
Rio Tinto plc | 294,330 | 16,595,543 | |||
Royal Dutch Shell plc, B Shares | 1,021,646 | 36,369,132 | |||
Royal Mail plc | 1,039,616 | 7,034,831 | |||
Segro plc | 435,909 | 3,793,996 | |||
Standard Life Aberdeen plc | 925,355 | 4,304,133 | |||
Thomas Cook Group plc | 3,593,470 | 5,384,403 | |||
Victrex plc | 44,784 | 1,678,738 | |||
Vodafone Group plc | 4,176,073 | 10,684,311 | |||
207,937,296 | |||||
TOTAL COMMON STOCKS (Cost $808,976,803) | 876,936,446 |
8
Shares | Value | ||||
EXCHANGE-TRADED FUNDS — 1.6% | |||||
iShares MSCI EAFE ETF | 94,000 | $ | 6,523,600 | ||
iShares MSCI EAFE Value ETF | 122,000 | 6,530,660 | |||
iShares MSCI Japan ETF | 22,000 | 1,314,280 | |||
TOTAL EXCHANGE-TRADED FUNDS (Cost $14,402,875) | 14,368,540 | ||||
TEMPORARY CASH INVESTMENTS — 1.6% | |||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 8/31/18 - 8/15/44, valued at $7,876,171), in a joint trading account at 1.50%, dated 5/31/18, due 6/1/18 (Delivery value $7,683,805) | 7,683,485 | ||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.75%, 11/15/43, valued at $6,534,034), at 0.74%, dated 5/31/18, due 6/1/18 (Delivery value $6,405,132) | 6,405,000 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 5,557 | 5,557 | |||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $14,094,042) | 14,094,042 | ||||
TOTAL INVESTMENT SECURITIES — 99.1% (Cost $837,473,720) | 905,399,028 | ||||
OTHER ASSETS AND LIABILITIES — 0.9% | 8,658,274 | ||||
TOTAL NET ASSETS — 100.0% | $ | 914,057,302 |
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Financials | 29.1 | % |
Energy | 11.7 | % |
Consumer Discretionary | 11.0 | % |
Materials | 8.8 | % |
Industrials | 8.0 | % |
Health Care | 7.9 | % |
Telecommunication Services | 7.8 | % |
Information Technology | 4.3 | % |
Utilities | 2.9 | % |
Real Estate | 2.2 | % |
Consumer Staples | 2.2 | % |
Exchange-Traded Funds | 1.6 | % |
Cash and Equivalents* | 2.5 | % |
*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, 2018 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $837,473,720) | $ | 905,399,028 | |
Foreign currency holdings, at value (cost of $33,231) | 33,118 | ||
Receivable for capital shares sold | 94,408 | ||
Dividends and interest receivable | 8,817,044 | ||
914,343,598 | |||
Liabilities | |||
Accrued management fees | 286,296 | ||
Net Assets | $ | 914,057,302 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 867,843,905 | |
Undistributed net investment income | 11,721,618 | ||
Accumulated net realized loss | (33,415,488 | ) | |
Net unrealized appreciation | 67,907,267 | ||
$ | 914,057,302 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $259,286,501 | 25,763,394 | $10.06 | |||
G Class, $0.01 Par Value | $654,770,801 | 64,721,522 | $10.12 |
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $2,020,036) | $ | 19,980,859 | |
Interest | 30,507 | ||
20,011,366 | |||
Expenses: | |||
Management fees | 4,838,324 | ||
Directors' fees and expenses | 12,944 | ||
Other expenses | 38,240 | ||
4,889,508 | |||
Fees waived - G Class | (3,224,808 | ) | |
1,664,700 | |||
Net investment income (loss) | 18,346,666 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions (net of foreign tax expenses paid (refunded) of $26,954) | 28,923,031 | ||
Foreign currency translation transactions | (89,881 | ) | |
28,833,150 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | (55,942,654 | ) | |
Translation of assets and liabilities in foreign currencies | (100,814 | ) | |
(56,043,468 | ) | ||
Net realized and unrealized gain (loss) | (27,210,318 | ) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (8,863,652 | ) |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2018 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2017 | ||||||
Increase (Decrease) in Net Assets | May 31, 2018 | November 30, 2017 | ||||
Operations | ||||||
Net investment income (loss) | $ | 18,346,666 | $ | 26,929,967 | ||
Net realized gain (loss) | 28,833,150 | 57,804,335 | ||||
Change in net unrealized appreciation (depreciation) | (56,043,468 | ) | 121,250,768 | |||
Net increase (decrease) in net assets resulting from operations | (8,863,652 | ) | 205,985,070 | |||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (7,142,667 | ) | (6,184,068 | ) | ||
G Class | (25,397,074 | ) | (18,723,887 | ) | ||
R6 Class | — | (2,164,034 | ) | |||
Decrease in net assets from distributions | (32,539,741 | ) | (27,071,989 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 2,502,260 | (72,123,783 | ) | |||
Net increase (decrease) in net assets | (38,901,133 | ) | 106,789,298 | |||
Net Assets | ||||||
Beginning of period | 952,958,435 | 846,169,137 | ||||
End of period | $ | 914,057,302 | $ | 952,958,435 | ||
Undistributed net investment income | $ | 11,721,618 | $ | 25,914,693 |
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2018 (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 or the Bloomberg Industry Classification Standard for the tobacco industry. The fund offers the Investor Class and G Class. On July 31, 2017, all outstanding R6 Class shares were converted to G Class shares and the fund discontinued offering 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.
13
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.
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.
14
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.
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 brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services, 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 investment advisor agreed to waive the G Class’s management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors.
The management fee schedule range and the effective annual management fee before and after waiver for each class for the period ended May 31, 2018 are as follows:
Effective Annual Management Fee | |||
Management Fee Schedule Range | Before Waiver | After Waiver | |
Investor Class | 1.100% to 1.300% | 1.28% | 1.28% |
G Class | 0.750% to 0.950% | 0.93% | 0.00% |
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchase were $152,084 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, 2018 were $361,489,971 and $385,559,574, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2018 | Year ended November 30, 2017 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 250,000,000 | 250,000,000 | ||||||||
Sold | 2,251,486 | $ | 23,319,325 | 2,144,328 | $ | 20,023,440 | ||||
Issued in reinvestment of distributions | 697,526 | 7,142,667 | 706,751 | 6,184,068 | ||||||
Redeemed | (184,697 | ) | (1,907,394 | ) | (2,892,490 | ) | (29,614,935 | ) | ||
2,764,315 | 28,554,598 | (41,411 | ) | (3,407,427 | ) | |||||
G Class/Shares Authorized | 640,000,000 | 640,000,000 | ||||||||
Sold | 3,074,606 | 32,174,321 | 11,463,291 | 115,098,247 | ||||||
Issued in reinvestment of distributions | 2,480,183 | 25,397,074 | 2,139,873 | 18,723,887 | ||||||
Redeemed | (7,938,712 | ) | (83,623,733 | ) | (13,518,000 | ) | (132,347,786 | ) | ||
(2,383,923 | ) | (26,052,338 | ) | 85,164 | 1,474,348 | |||||
R6 Class/Shares Authorized | N/A | N/A | ||||||||
Sold | 1,980,937 | 18,309,291 | ||||||||
Issued in reinvestment of distributions | 247,318 | 2,164,034 | ||||||||
Redeemed | (8,948,145 | ) | (90,664,029 | ) | ||||||
(6,719,890 | ) | (70,190,704 | ) | |||||||
Net increase (decrease) | 380,392 | $ | 2,502,260 | (6,676,137 | ) | $ | (72,123,783 | ) |
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 | $ | 5,654,201 | $ | 871,282,245 | — | |||
Exchange-Traded Funds | 14,368,540 | — | — | |||||
Temporary Cash Investments | 5,557 | 14,088,485 | — | |||||
$ | 20,028,298 | $ | 885,370,730 | — |
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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 | $ | 842,254,198 | |
Gross tax appreciation of investments | $ | 101,494,250 | |
Gross tax depreciation of investments | (38,349,420 | ) | |
Net tax appreciation (depreciation) of investments | $ | 63,144,830 |
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, 2017, the fund had accumulated short-term capital losses of $(39,046,850) and accumulated long-term capital losses of $(16,667,525), 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.
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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 | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2018(3) | $10.53 | 0.16 | (0.32) | (0.16) | (0.31) | $10.06 | (1.58)% | 1.29%(4) | 2.95%(4) | 39% | $259,287 | ||
2017 | $8.73 | 0.24 | 1.83 | 2.07 | (0.27) | $10.53 | 24.32% | 1.29% | 2.44% | 79% | $242,242 | ||
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 | ||
G Class | |||||||||||||
2018(3) | $10.59 | 0.22 | (0.31) | (0.09) | (0.38) | $10.12 | (0.90)% | 0.01%(4)(6) | 4.23%(4)(6) | 39% | $654,771 | ||
2017 | $8.75 | 0.29 | 1.84 | 2.13 | (0.29) | $10.59 | 24.99% | 0.69%(7) | 3.04%(7) | 79% | $710,717 | ||
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 |
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, 2018 (unaudited). |
(4) | Annualized. |
(5) | March 19, 2015 (fund inception) through November 30, 2015. |
(6) | The annualized ratio of operating expenses to average net assets before expense waiver and the annualized ratio of net investment income (loss) to average net assets before expense waiver was 0.94% and 3.30%, respectively. |
(7) | The ratio of operating expenses to average net assets before expense waiver and the ratio of net investment income (loss) to average net assets before expense waiver was 1.04% and 2.69%, respectively. |
See Notes to Financial Statements.
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
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 |
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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. | ||
©2018 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92629 1807 |
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 period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)(1) | Not applicable for semiannual report filings. |
(a)(2) | Separate certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are filed and attached hereto as EX-99.CERT. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | A certification by the registrant’s chief executive officer and chief financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, is furnished and attached hereto as EX- 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | American Century World Mutual Funds, Inc. | |||
By: | /s/ Jonathan S. Thomas | |||
Name: | Jonathan S. Thomas | |||
Title: | President | |||
Date: | July 26, 2018 |
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, 2018 |
By: | /s/ C. Jean Wade | ||
Name: C. Jean Wade | |||
Title: Vice President, Treasurer, and | |||
Chief Financial Officer | |||
(principal financial officer) | |||
Date: | July 26, 2018 |