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: | 05-31-2020 |
ITEM 1. REPORTS TO STOCKHOLDERS.
![image291.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image291.jpg)
Semiannual Report | |||||
May 31, 2020 | |||||
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) |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.
You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Table of Contents |
President’s Letter | |||||
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Liquidity Risk Management Program | |||||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514a141.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/jthomasrev0514a141.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2020. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Pandemic Led to Severe Economic, Market Disruptions
Early in the reporting period, market sentiment was generally upbeat. Dovish central banks, modest inflation, improving economic and corporate earnings data, and U.S.-China trade-policy progress helped boost global growth outlooks. Against this backdrop, key U.S. stock benchmarks rose to new highs in mid-February, and risk assets largely remained in favor throughout the world.
However, beginning in late February, unprecedented social, health care and economic turmoil quickly quashed the optimistic tone. The COVID-19 outbreak rapidly spread throughout the world, halting most economic activity and triggering worldwide recession fears. Adding to the turmoil, global oil prices collapsed amid plunging demand and a price war between Saudi Arabia and Russia. Global stocks and other riskier assets sold off sharply as investors fled to safe-haven investments.
Central banks and federal governments stepped in quickly and aggressively to stabilize global markets and provide financial relief. These extraordinary efforts proved helpful, as markets broadly rebounded in April and May despite discouraging economic and corporate earnings data. In addition, declining coronavirus infection rates and the reopening of many economies helped fuel the recovery. But the rebound wasn’t enough to offset the effects of the earlier sell-off, and global stocks retreated for the six-month period. U.S. stocks fared better than non-U.S. stocks. Among non-U.S. stocks, developed markets generally declined at a greater pace than emerging markets.
As COVID-19 infections are slowing, most economies across the world are reopening. Nevertheless, the return to pre-pandemic economic and market levels will take time and patience. In the meantime, investors likely will face periods of economic and political uncertainty and heightened market volatility. While these influences can be unsettling, they tend to be temporary.
We appreciate your confidence in us during these extraordinary times. We have a long history of helping clients weather unpredictable markets, and we’re confident we will meet today's challenges.
Sincerely,
![image231.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image231.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2020 | ||||||||
Top Ten Holdings | % of net assets | |||||||
Tencent Holdings Ltd. | 7.8% | |||||||
Alibaba Group Holding Ltd., ADR | 7.5% | |||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 6.6% | |||||||
Samsung Electronics Co. Ltd. | 5.0% | |||||||
Naspers Ltd., N Shares | 2.8% | |||||||
GDS Holdings Ltd., ADR | 2.1% | |||||||
HDFC Bank Ltd. | 2.1% | |||||||
China Construction Bank Corp., H Shares | 2.0% | |||||||
Chailease Holding Co. Ltd. | 1.9% | |||||||
Industrial & Commercial Bank of China Ltd., H Shares | 1.8% | |||||||
Types of Investments in Portfolio | % of net assets | |||||||
Common Stocks | 99.3% | |||||||
Temporary Cash Investments | 0.3% | |||||||
Other Assets and Liabilities | 0.4% | |||||||
Investments by Country | % of net assets | |||||||
China | 44.2% | |||||||
Taiwan | 12.5% | |||||||
South Korea | 11.7% | |||||||
India | 6.3% | |||||||
Brazil | 5.8% | |||||||
South Africa | 4.0% | |||||||
Russia | 3.1% | |||||||
Thailand | 2.2% | |||||||
Other Countries | 9.5% | |||||||
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, 2019 to May 31, 2020.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
4
Beginning Account Value 12/1/19 | Ending Account Value 5/31/20 | Expenses Paid During Period(1) 12/1/19 - 5/31/20 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $915.90 | $6.04 | 1.26% | ||||||||||
I Class | $1,000 | $916.10 | $5.08 | 1.06% | ||||||||||
Y Class | $1,000 | $917.00 | $4.36 | 0.91% | ||||||||||
A Class | $1,000 | $915.20 | $7.23 | 1.51% | ||||||||||
C Class | $1,000 | $911.10 | $10.80 | 2.26% | ||||||||||
R Class | $1,000 | $913.30 | $8.42 | 1.76% | ||||||||||
R5 Class | $1,000 | $916.20 | $5.08 | 1.06% | ||||||||||
R6 Class | $1,000 | $916.80 | $4.36 | 0.91% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,018.70 | $6.36 | 1.26% | ||||||||||
I Class | $1,000 | $1,019.70 | $5.35 | 1.06% | ||||||||||
Y Class | $1,000 | $1,020.45 | $4.60 | 0.91% | ||||||||||
A Class | $1,000 | $1,017.45 | $7.62 | 1.51% | ||||||||||
C Class | $1,000 | $1,013.70 | $11.38 | 2.26% | ||||||||||
R Class | $1,000 | $1,016.20 | $8.87 | 1.76% | ||||||||||
R5 Class | $1,000 | $1,019.70 | $5.35 | 1.06% | ||||||||||
R6 Class | $1,000 | $1,020.45 | $4.60 | 0.91% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 366, 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, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.3% | ||||||||
Argentina — 1.1% | ||||||||
Globant SA(1) | 165,924 | $ | 23,264,204 | |||||
Brazil — 5.8% | ||||||||
B3 SA - Brasil Bolsa Balcao | 3,403,200 | 29,087,561 | ||||||
Cia Brasileira de Distribuicao | 849,900 | 9,873,002 | ||||||
Magazine Luiza SA | 1,945,818 | 23,592,082 | ||||||
Raia Drogasil SA | 688,800 | 14,232,162 | ||||||
TOTVS SA | 3,500,400 | 13,197,918 | ||||||
Vale SA, ADR | 1,168,288 | 11,402,491 | ||||||
WEG SA | 3,140,300 | 24,427,759 | ||||||
125,812,975 | ||||||||
China — 44.2% | ||||||||
A-Living Services Co. Ltd., H Shares | 4,020,500 | 21,656,674 | ||||||
Alibaba Group Holding Ltd., ADR(1) | 788,876 | 163,604,994 | ||||||
Anhui Conch Cement Co. Ltd., H Shares | 3,591,000 | 27,076,461 | ||||||
China Construction Bank Corp., H Shares | 54,801,000 | 43,291,143 | ||||||
China Education Group Holdings Ltd. | 9,550,000 | 16,548,123 | ||||||
China Gas Holdings Ltd. | 4,976,000 | 17,504,284 | ||||||
China International Travel Service Corp. Ltd., A Shares | 1,000,917 | 14,221,083 | ||||||
China Overseas Land & Investment Ltd. | 3,232,000 | 9,925,724 | ||||||
CIFI Holdings Group Co. Ltd. | 42,666,888 | 30,840,484 | ||||||
CNOOC Ltd. | 27,739,000 | 31,373,251 | ||||||
Country Garden Services Holdings Co. Ltd.(1) | 6,881,000 | 32,380,085 | ||||||
GDS Holdings Ltd., ADR(1) | 793,267 | 45,216,219 | ||||||
Geely Automobile Holdings Ltd. | 9,561,000 | 13,223,969 | ||||||
Haier Electronics Group Co. Ltd. | 5,336,000 | 14,914,926 | ||||||
Industrial & Commercial Bank of China Ltd., H Shares | 61,285,645 | 39,762,734 | ||||||
JD.com, Inc., ADR(1) | 319,964 | 17,383,644 | ||||||
Kweichow Moutai Co. Ltd., A Shares | 167,710 | 32,152,840 | ||||||
Li Ning Co. Ltd. | 4,632,000 | 15,628,163 | ||||||
Luxshare Precision Industry Co. Ltd., A Shares | 3,967,115 | 24,839,735 | ||||||
New Oriental Education & Technology Group, Inc., ADR(1) | 298,390 | 35,794,864 | ||||||
Ping An Insurance Group Co. of China Ltd., H Shares | 3,685,000 | 36,585,500 | ||||||
Shenzhou International Group Holdings Ltd. | 1,247,200 | 14,991,229 | ||||||
TAL Education Group, ADR(1) | 581,309 | 32,820,706 | ||||||
Tencent Holdings Ltd. | 3,187,000 | 169,871,683 | ||||||
Wuxi Biologics Cayman, Inc.(1) | 827,000 | 13,063,284 | ||||||
Xinyi Solar Holdings Ltd. | 35,798,000 | 26,122,112 | ||||||
Zhongji Innolight Co. Ltd., A Shares | 2,422,638 | 19,401,296 | ||||||
960,195,210 | ||||||||
Egypt — 0.6% | ||||||||
Commercial International Bank Egypt S.A.E. | 3,366,930 | 13,310,379 | ||||||
Hungary — 1.3% | ||||||||
OTP Bank Nyrt(1) | 877,810 | 29,239,793 | ||||||
India — 6.3% | ||||||||
Asian Paints Ltd. | 382,362 | 8,494,621 |
6
Shares | Value | |||||||
Bajaj Finance Ltd. | 208,098 | $ | 5,352,116 | |||||
Bata India Ltd. | 643,473 | 11,269,191 | ||||||
HDFC Bank Ltd. | 3,576,662 | 45,095,363 | ||||||
Indraprastha Gas Ltd. | 1,844,144 | 11,481,268 | ||||||
Jubilant Foodworks Ltd. | 730,692 | 15,999,572 | ||||||
Nestle India Ltd. | 94,618 | 22,006,144 | ||||||
Tata Consultancy Services Ltd. | 684,706 | 17,861,884 | ||||||
137,560,159 | ||||||||
Indonesia — 1.4% | ||||||||
Bank Rakyat Indonesia Persero Tbk PT | 78,306,200 | 15,853,466 | ||||||
Telekomunikasi Indonesia Persero Tbk PT | 68,550,900 | 14,819,239 | ||||||
30,672,705 | ||||||||
Malaysia — 1.1% | ||||||||
Top Glove Corp. Bhd | 7,902,800 | 24,211,751 | ||||||
Mexico — 1.7% | ||||||||
America Movil SAB de CV, Class L ADR | 864,460 | 11,462,739 | ||||||
Wal-Mart de Mexico SAB de CV | 9,789,545 | 24,502,007 | ||||||
35,964,746 | ||||||||
Peru — 0.5% | ||||||||
Credicorp Ltd. | 75,854 | 10,454,198 | ||||||
Philippines — 0.7% | ||||||||
Ayala Land, Inc. | 24,231,200 | 15,129,414 | ||||||
Russia — 3.1% | ||||||||
Novatek PJSC, GDR | 135,655 | 19,741,165 | ||||||
Sberbank of Russia PJSC, ADR (London) | 1,761,672 | 20,025,618 | ||||||
Yandex NV, A Shares(1) | 687,615 | 27,662,752 | ||||||
67,429,535 | ||||||||
South Africa — 4.0% | ||||||||
Capitec Bank Holdings Ltd. | 267,034 | 12,983,725 | ||||||
Kumba Iron Ore Ltd. | 515,546 | 13,938,969 | ||||||
Naspers Ltd., N Shares | 381,741 | 60,699,141 | ||||||
87,621,835 | ||||||||
South Korea — 11.7% | ||||||||
CJ Logistics Corp.(1) | 225,793 | 29,388,910 | ||||||
Hotel Shilla Co. Ltd. | 233,909 | 15,042,686 | ||||||
Korea Shipbuilding & Offshore Engineering Co. Ltd.(1) | 139,623 | 10,278,354 | ||||||
LG Household & Health Care Ltd. | 15,477 | 17,156,567 | ||||||
Orion Corp/Republic of Korea | 169,558 | 18,105,187 | ||||||
Samsung Electro-Mechanics Co. Ltd. | 328,476 | 33,271,274 | ||||||
Samsung Electronics Co. Ltd. | 2,626,426 | 107,836,588 | ||||||
SK Hynix, Inc. | 361,792 | 23,888,425 | ||||||
254,967,991 | ||||||||
Taiwan — 12.5% | ||||||||
ASPEED Technology, Inc. | 569,000 | 29,399,616 | ||||||
Chailease Holding Co. Ltd. | 10,769,556 | 41,870,569 | ||||||
Giant Manufacturing Co. Ltd. | 1,372,000 | 10,757,338 | ||||||
Largan Precision Co. Ltd. | 80,000 | 10,223,588 | ||||||
Merida Industry Co. Ltd. | 1,979,000 | 11,883,440 | ||||||
President Chain Store Corp. | 1,338,000 | 13,173,014 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 14,708,939 | 143,253,503 | ||||||
Win Semiconductors Corp. | 1,322,000 | 11,321,180 | ||||||
271,882,248 |
7
Shares | Value | |||||||
Thailand — 2.2% | ||||||||
Airports of Thailand PCL | 5,791,900 | $ | 11,363,340 | |||||
CP ALL PCL | 8,980,500 | 19,864,290 | ||||||
Muangthai Capital PCL | 9,192,500 | 16,024,105 | ||||||
47,251,735 | ||||||||
Turkey — 0.7% | ||||||||
BIM Birlesik Magazalar AS | 1,611,730 | 15,394,556 | ||||||
United Kingdom — 0.4% | ||||||||
Network International Holdings plc(1) | 1,672,144 | 9,642,996 | ||||||
TOTAL COMMON STOCKS
(Cost $1,906,855,895) | 2,160,006,430 | |||||||
TEMPORARY CASH INVESTMENTS — 0.3% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.25%, 5/15/25 - 2/15/27, valued at $2,723,503), in a joint trading account at 0.01%, dated 5/29/20, due 6/1/20 (Delivery value $2,668,343) | 2,668,341 | |||||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.125%, 3/31/24, valued at $4,392,124), at 0.03%, dated 5/29/20, due 6/1/20 (Delivery value $4,301,011) | 4,301,000 | |||||||
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $6,969,341) | 6,969,341 | |||||||
TOTAL INVESTMENT SECURITIES — 99.6%
(Cost $1,913,825,236) | 2,166,975,771 | |||||||
OTHER ASSETS AND LIABILITIES — 0.4% | 7,876,447 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 2,174,852,218 |
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Information Technology | 24.8 | % | |||
Consumer Discretionary | 22.5 | % | |||
Financials | 16.5 | % | |||
Communication Services | 10.4 | % | |||
Consumer Staples | 8.6 | % | |||
Industrials | 5.9 | % | |||
Materials | 2.7 | % | |||
Real Estate | 2.6 | % | |||
Energy | 2.3 | % | |||
Health Care | 1.7 | % | |||
Utilities | 1.3 | % | |||
Cash and Equivalents* | 0.7 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||||||||
ADR | - | American Depositary Receipt | ||||||||||||
GDR | - | Global Depositary Receipt |
(1)Non-income producing.
See Notes to Financial Statements.
8
Statement of Assets and Liabilities |
MAY 31, 2020 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $1,913,825,236) | $ | 2,166,975,771 | |||
Foreign currency holdings, at value (cost of $492,980) | 493,040 | ||||
Receivable for investments sold | 30,178,403 | ||||
Receivable for capital shares sold | 2,278,642 | ||||
Dividends and interest receivable | 2,006,318 | ||||
Other assets | 47,457 | ||||
2,201,979,631 | |||||
Liabilities | |||||
Disbursements in excess of demand deposit cash | 3,317 | ||||
Payable for investments purchased | 20,521,354 | ||||
Payable for capital shares redeemed | 4,624,846 | ||||
Accrued management fees | 1,942,047 | ||||
Distribution and service fees payable | 35,849 | ||||
27,127,413 | |||||
Net Assets | $ | 2,174,852,218 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 2,350,466,700 | |||
Distributable earnings | (175,614,482) | ||||
$ | 2,174,852,218 | ||||
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $517,828,570 | 50,979,395 | $10.16 | ||||||||
I Class, $0.01 Par Value | $1,131,353,677 | 108,671,648 | $10.41 | ||||||||
Y Class, $0.01 Par Value | $18,412,006 | 1,765,784 | $10.43 | ||||||||
A Class, $0.01 Par Value | $69,221,986 | 7,060,682 | $9.80* | ||||||||
C Class, $0.01 Par Value | $23,153,316 | 2,600,351 | $8.90 | ||||||||
R Class, $0.01 Par Value | $5,595,832 | 568,213 | $9.85 | ||||||||
R5 Class, $0.01 Par Value | $2,600,005 | 249,554 | $10.42 | ||||||||
R6 Class, $0.01 Par Value | $406,686,826 | 39,069,855 | $10.41 |
*Maximum offering price $10.40 (net asset value divided by 0.9425).
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $1,814,559) | $ | 13,922,141 | |||
Securities lending, net | 87,938 | ||||
Interest | 69,500 | ||||
14,079,579 | |||||
Expenses: | |||||
Management fees | 12,713,235 | ||||
Distribution and service fees: | |||||
A Class | 93,350 | ||||
C Class | 135,310 | ||||
R Class | 16,019 | ||||
Directors' fees and expenses | 37,758 | ||||
Other expenses | 57,481 | ||||
13,053,153 | |||||
Net investment income (loss) | 1,026,426 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions (net of foreign tax expenses paid (refunded) of $(21,613)) | (119,744,750) | ||||
Foreign currency translation transactions | (20,375) | ||||
(119,765,125) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | (91,763,368) | ||||
Translation of assets and liabilities in foreign currencies | 17,979 | ||||
(91,745,389) | |||||
Net realized and unrealized gain (loss) | (211,510,514) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (210,484,088) |
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2019 | ||||||||||||||
Increase (Decrease) in Net Assets | May 31, 2020 | November 30, 2019 | ||||||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 1,026,426 | $ | 40,847,232 | ||||||||||
Net realized gain (loss) | (119,765,125) | (165,576,882) | ||||||||||||
Change in net unrealized appreciation (depreciation) | (91,745,389) | 371,028,910 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | (210,484,088) | 246,299,260 | ||||||||||||
Distributions to Shareholders | ||||||||||||||
From earnings: | ||||||||||||||
Investor Class | (8,013,736) | (4,369,482) | ||||||||||||
I Class | (21,862,436) | (6,026,364) | ||||||||||||
Y Class | (310,424) | (55,971) | ||||||||||||
A Class | (874,154) | (149,480) | ||||||||||||
C Class | (114,160) | — | ||||||||||||
R Class | (57,761) | — | ||||||||||||
R5 Class | (44,744) | (18,644) | ||||||||||||
R6 Class | (8,006,334) | (2,430,490) | ||||||||||||
Decrease in net assets from distributions | (39,283,749) | (13,050,431) | ||||||||||||
Capital Share Transactions | ||||||||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (46,239,361) | 825,809 | ||||||||||||
Net increase (decrease) in net assets | (296,007,198) | 234,074,638 | ||||||||||||
Net Assets | ||||||||||||||
Beginning of period | 2,470,859,416 | 2,236,784,778 | ||||||||||||
End of period | $ | 2,174,852,218 | $ | 2,470,859,416 | ||||||||||
See Notes to Financial Statements.
11
Notes to Financial Statements |
MAY 31, 2020 (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.
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
12
Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. 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. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
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.
13
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.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
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, 6% of the shares of the fund.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class.
The annual management fee for each class is as follows:
Investor Class | I Class | Y Class | A Class | C Class | R Class | R5 Class | R6 Class | ||||||||||||||||
1.25% | 1.05% | 0.90% | 1.25% | 1.25% | 1.25% | 1.05% | 0.90% |
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, 2020 are detailed in the Statement of Operations.
14
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 $175 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $81 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, 2020 were $433,808,117 and $477,864,472, respectively.
15
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2020 | Year ended November 30, 2019 | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Investor Class/Shares Authorized | 1,100,000,000 | 1,100,000,000 | ||||||||||||||||||
Sold | 8,769,988 | $ | 89,061,370 | 22,833,790 | $ | 240,540,598 | ||||||||||||||
Issued in reinvestment of distributions | 722,447 | 7,801,863 | 388,374 | 4,217,739 | ||||||||||||||||
Redeemed | (12,417,852) | (128,832,210) | (65,606,525) | (711,808,825) | ||||||||||||||||
(2,925,417) | (31,968,977) | (42,384,361) | (467,050,488) | |||||||||||||||||
I Class/Shares Authorized | 1,520,000,000 | 1,520,000,000 | ||||||||||||||||||
Sold | 29,858,754 | 318,578,860 | 78,665,181 | 874,061,540 | ||||||||||||||||
Issued in reinvestment of distributions | 1,776,798 | 19,811,353 | 474,557 | 5,281,820 | ||||||||||||||||
Redeemed | (37,668,131) | (395,421,219) | (50,245,387) | (545,284,007) | ||||||||||||||||
(6,032,579) | (57,031,006) | 28,894,351 | 334,059,353 | |||||||||||||||||
Y Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 571,785 | 6,061,390 | 913,667 | 10,139,043 | ||||||||||||||||
Issued in reinvestment of distributions | 27,351 | 306,119 | 4,968 | 55,447 | ||||||||||||||||
Redeemed | (95,529) | (995,440) | (106,700) | (1,190,387) | ||||||||||||||||
503,607 | 5,372,069 | 811,935 | 9,004,103 | |||||||||||||||||
A Class/Shares Authorized | 100,000,000 | 100,000,000 | ||||||||||||||||||
Sold | 1,728,294 | 17,716,431 | 3,294,887 | 33,939,545 | ||||||||||||||||
Issued in reinvestment of distributions | 53,746 | 556,804 | 10,533 | 110,381 | ||||||||||||||||
Redeemed | (1,978,625) | (19,499,375) | (3,456,550) | (35,675,172) | ||||||||||||||||
(196,585) | (1,226,140) | (151,130) | (1,625,246) | |||||||||||||||||
C Class/Shares Authorized | 45,000,000 | 45,000,000 | ||||||||||||||||||
Sold | 113,425 | 1,150,618 | 716,119 | 6,640,072 | ||||||||||||||||
Issued in reinvestment of distributions | 10,261 | 96,660 | — | — | ||||||||||||||||
Redeemed | (579,662) | (5,287,590) | (1,227,066) | (11,446,164) | ||||||||||||||||
(455,976) | (4,040,312) | (510,947) | (4,806,092) | |||||||||||||||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 131,053 | 1,390,298 | 220,384 | 2,282,049 | ||||||||||||||||
Issued in reinvestment of distributions | 5,549 | 57,761 | — | — | ||||||||||||||||
Redeemed | (195,712) | (1,953,977) | (184,311) | (1,924,685) | ||||||||||||||||
(59,110) | (505,918) | 36,073 | 357,364 | |||||||||||||||||
R5 Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 126,835 | 1,507,379 | 58,405 | 635,522 | ||||||||||||||||
Issued in reinvestment of distributions | 4,015 | 44,739 | 1,674 | 18,644 | ||||||||||||||||
Redeemed | (92,512) | (1,120,199) | (280,786) | (3,093,224) | ||||||||||||||||
38,338 | 431,919 | (220,707) | (2,439,058) | |||||||||||||||||
R6 Class/Shares Authorized | 450,000,000 | 450,000,000 | ||||||||||||||||||
Sold | 10,156,897 | 109,989,004 | 18,822,132 | 206,418,584 | ||||||||||||||||
Issued in reinvestment of distributions | 690,876 | 7,733,183 | 212,269 | 2,364,675 | ||||||||||||||||
Redeemed | (6,826,177) | (74,993,183) | (6,804,815) | (75,457,386) | ||||||||||||||||
4,021,596 | 42,729,004 | 12,229,586 | 133,325,873 | |||||||||||||||||
Net increase (decrease) | (5,106,126) | $ | (46,239,361) | (1,295,200) | $ | 825,809 |
16
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
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 | $ | 23,264,204 | — | — | |||||||
Brazil | 11,402,491 | $ | 114,410,484 | — | |||||||
China | 294,820,427 | 665,374,783 | — | ||||||||
Mexico | 11,462,739 | 24,502,007 | — | ||||||||
Peru | 10,454,198 | — | — | ||||||||
Russia | 27,662,752 | 39,766,783 | — | ||||||||
Other Countries | — | 936,885,562 | — | ||||||||
Temporary Cash Investments | — | 6,969,341 | — | ||||||||
$ | 379,066,811 | $ | 1,787,908,960 | — |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
17
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 | $ | 1,914,709,852 | |||
Gross tax appreciation of investments | $ | 381,834,103 | |||
Gross tax depreciation of investments | (129,568,184) | ||||
Net tax appreciation (depreciation) of investments | $ | 252,265,919 |
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, 2019, the fund had accumulated short-term capital losses of $(256,610,971) and accumulated long-term capital losses of $(52,205,721), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
18
Financial Highlights |
For a Share Outstanding Throughout the Years Ended 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $11.25 | —(4) | (0.94) | (0.94) | (0.15) | — | (0.15) | $10.16 | (8.41)% | 1.26%(5) | 1.26%(5) | (0.06)%(5) | (0.06)%(5) | 19% | $517,829 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $10.19 | 0.17 | 0.94 | 1.11 | (0.05) | — | (0.05) | $11.25 | 10.99% | 1.25% | 1.25% | 1.59% | 1.59% | 39% | $606,668 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $12.00 | 0.08 | (1.80) | (1.72) | (0.03) | (0.06) | (0.09) | $10.19 | (14.57)% | 1.18% | 1.29% | 0.71% | 0.60% | 36% | $980,765 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
I Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $11.56 | 0.01 | (0.97) | (0.96) | (0.19) | — | (0.19) | $10.41 | (8.39)% | 1.06%(5) | 1.06%(5) | 0.14%(5) | 0.14%(5) | 19% | $1,131,354 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $10.46 | 0.20 | 0.97 | 1.17 | (0.07) | — | (0.07) | $11.56 | 11.20% | 1.05% | 1.05% | 1.79% | 1.79% | 39% | $1,325,801 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $12.32 | 0.11 | (1.85) | (1.74) | (0.06) | (0.06) | (0.12) | $10.46 | (14.35)% | 0.98% | 1.09% | 0.91% | 0.80% | 36% | $897,336 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
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) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Y Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $11.60 | 0.02 | (0.97) | (0.95) | (0.22) | — | (0.22) | $10.43 | (8.30)% | 0.91%(5) | 0.91%(5) | 0.29%(5) | 0.29%(5) | 19% | $18,412 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $10.49 | 0.26 | 0.94 | 1.20 | (0.09) | — | (0.09) | $11.60 | 11.43% | 0.90% | 0.90% | 1.94% | 1.94% | 39% | $14,638 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $12.34 | 0.08 | (1.81) | (1.73) | (0.06) | (0.06) | (0.12) | $10.49 | (14.23)% | 0.83% | 0.94% | 1.06% | 0.95% | 36% | $4,724 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017(6) | $9.79 | 0.07 | 2.48 | 2.55 | — | — | — | $12.34 | 26.05% | 0.77%(5) | 1.12%(5) | 0.91%(5) | 0.56%(5) | 47%(7) | $6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $10.84 | (0.02) | (0.90) | (0.92) | (0.12) | — | (0.12) | $9.80 | (8.48)% | 1.51%(5) | 1.51%(5) | (0.31)%(5) | (0.31)%(5) | 19% | $69,222 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $9.81 | 0.14 | 0.91 | 1.05 | (0.02) | — | (0.02) | $10.84 | 10.71% | 1.50% | 1.50% | 1.34% | 1.34% | 39% | $78,704 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $11.57 | 0.05 | (1.75) | (1.70) | — | (0.06) | (0.06) | $9.81 | (14.80)% | 1.43% | 1.54% | 0.46% | 0.35% | 36% | $72,711 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $8.26 | —(4) | 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
C Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $9.82 | (0.05) | (0.83) | (0.88) | (0.04) | — | (0.04) | $8.90 | (8.89)% | 2.26%(5) | 2.26%(5) | (1.06)%(5) | (1.06)%(5) | 19% | $23,153 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $8.93 | 0.05 | 0.84 | 0.89 | — | — | — | $9.82 | 9.97% | 2.25% | 2.25% | 0.59% | 0.59% | 39% | $30,004 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $10.61 | (0.03) | (1.59) | (1.62) | — | (0.06) | (0.06) | $8.93 | (15.39)% | 2.18% | 2.29% | (0.29)% | (0.40)% | 36% | $31,871 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $10.88 | (0.03) | (0.91) | (0.94) | (0.09) | — | (0.09) | $9.85 | (8.67)% | 1.76%(5) | 1.76%(5) | (0.56)%(5) | (0.56)%(5) | 19% | $5,596 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $9.85 | 0.12 | 0.91 | 1.03 | — | — | — | $10.88 | 10.46% | 1.75% | 1.75% | 1.09% | 1.09% | 39% | $6,825 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $11.64 | 0.02 | (1.75) | (1.73) | — | (0.06) | (0.06) | $9.85 | (14.97)% | 1.68% | 1.79% | 0.21% | 0.10% | 36% | $5,825 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
R5 Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $11.57 | 0.01 | (0.97) | (0.96) | (0.19) | — | (0.19) | $10.42 | (8.38)% | 1.06%(5) | 1.06%(5) | 0.14%(5) | 0.14%(5) | 19% | $2,600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $10.47 | 0.20 | 0.97 | 1.17 | (0.07) | — | (0.07) | $11.57 | 11.19% | 1.05% | 1.05% | 1.79% | 1.79% | 39% | $2,444 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $12.32 | 0.12 | (1.86) | (1.74) | (0.05) | (0.06) | (0.11) | $10.47 | (14.33)% | 0.98% | 1.09% | 0.91% | 0.80% | 36% | $4,521 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017(6) | $9.78 | 0.03 | 2.51 | 2.54 | — | — | — | $12.32 | 25.97% | 0.92%(5) | 1.27%(5) | 0.78%(5) | 0.43%(5) | 47%(7) | $46 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
R6 Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $11.58 | 0.02 | (0.97) | (0.95) | (0.22) | — | (0.22) | $10.41 | (8.32)% | 0.91%(5) | 0.91%(5) | 0.29%(5) | 0.29%(5) | 19% | $406,687 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $10.48 | 0.23 | 0.96 | 1.19 | (0.09) | — | (0.09) | $11.58 | 11.45% | 0.90% | 0.90% | 1.94% | 1.94% | 39% | $405,776 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $12.34 | 0.12 | (1.84) | (1.72) | (0.08) | (0.06) | (0.14) | $10.48 | (14.28)% | 0.83% | 0.94% | 1.06% | 0.95% | 36% | $239,031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
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, 2020 (unaudited).
(4)Per-share amount was less than $0.005.
(5)Annualized.
(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.
See Notes to Financial Statements.
Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2018 through December 31, 2019. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
23
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 American Century Investments’ website at americancentury.com/proxy 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 americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange
Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on
Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its
fiscal year available on its website at americancentury.com and, upon request, by calling
1-800-345-2021.
24
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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. | |||||||||||
©2020 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92633 2007 |
![image291.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image291.jpg)
Semiannual Report | |||||
May 31, 2020 | |||||
Emerging Markets Small Cap Fund | |||||
Investor Class (AECVX) | |||||
I Class (AECSX) | |||||
A Class (AECLX) | |||||
C Class (AECHX) | |||||
R Class (AECMX) | |||||
R6 Class (AECTX) |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.
You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Table of Contents |
President’s Letter | |||||
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Liquidity Risk Management Program | |||||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514a141.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/jthomasrev0514a141.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2020. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Pandemic Led to Severe Economic, Market Disruptions
Early in the reporting period, market sentiment was generally upbeat. Dovish central banks, modest inflation, improving economic and corporate earnings data, and U.S.-China trade-policy progress helped boost global growth outlooks. Against this backdrop, key U.S. stock benchmarks rose to new highs in mid-February, and risk assets largely remained in favor throughout the world.
However, beginning in late February, unprecedented social, health care and economic turmoil quickly quashed the optimistic tone. The COVID-19 outbreak rapidly spread throughout the world, halting most economic activity and triggering worldwide recession fears. Adding to the turmoil, global oil prices collapsed amid plunging demand and a price war between Saudi Arabia and Russia. Global stocks and other riskier assets sold off sharply as investors fled to safe-haven investments.
Central banks and federal governments stepped in quickly and aggressively to stabilize global markets and provide financial relief. These extraordinary efforts proved helpful, as markets broadly rebounded in April and May despite discouraging economic and corporate earnings data. In addition, declining coronavirus infection rates and the reopening of many economies helped fuel the recovery. But the rebound wasn’t enough to offset the effects of the earlier sell-off, and global stocks retreated for the six-month period. U.S. stocks fared better than non-U.S. stocks. Among non-U.S. stocks, developed markets generally declined at a greater pace than emerging markets.
As COVID-19 infections are slowing, most economies across the world are reopening. Nevertheless, the return to pre-pandemic economic and market levels will take time and patience. In the meantime, investors likely will face periods of economic and political uncertainty and heightened market volatility. While these influences can be unsettling, they tend to be temporary.
We appreciate your confidence in us during these extraordinary times. We have a long history of helping clients weather unpredictable markets, and we’re confident we will meet today's challenges.
Sincerely,
![image231.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image231.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2020 | ||||||||
Top Ten Holdings | % of net assets | |||||||
ASPEED Technology, Inc. | 2.9% | |||||||
A-Living Services Co. Ltd., H Shares | 2.5% | |||||||
Country Garden Services Holdings Co. Ltd. | 2.3% | |||||||
Digital Telecommunications Infrastructure Fund | 2.2% | |||||||
Chailease Holding Co. Ltd. | 2.2% | |||||||
GDS Holdings Ltd., ADR | 2.2% | |||||||
Globant SA | 2.1% | |||||||
ITEQ Corp. | 2.0% | |||||||
Taiwan Union Technology Corp. | 1.9% | |||||||
Comba Telecom Systems Holdings Ltd. | 1.8% | |||||||
Types of Investments in Portfolio | % of net assets | |||||||
Common Stocks | 98.6% | |||||||
Temporary Cash Investments | 1.2% | |||||||
Other Assets and Liabilities | 0.2% | |||||||
Investments by Country | % of net assets | |||||||
Taiwan | 22.2% | |||||||
China | 20.2% | |||||||
South Korea | 12.1% | |||||||
India | 9.0% | |||||||
Brazil | 7.5% | |||||||
Thailand | 4.9% | |||||||
Indonesia | 3.8% | |||||||
South Africa | 2.2% | |||||||
Malaysia | 2.1% | |||||||
Argentina | 2.1% | |||||||
Other Countries | 12.5% | |||||||
Cash and Equivalents* | 1.4% | |||||||
*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, 2019 to May 31, 2020.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
4
Beginning Account Value 12/1/19 | Ending Account Value 5/31/20 | Expenses Paid During Period(1) 12/1/19 - 5/31/20 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $913.80 | $7.70 | 1.61% | ||||||||||
I Class | $1,000 | $915.10 | $6.75 | 1.41% | ||||||||||
A Class | $1,000 | $912.00 | $8.89 | 1.86% | ||||||||||
C Class | $1,000 | $909.70 | $12.46 | 2.61% | ||||||||||
R Class | $1,000 | $912.20 | $10.09 | 2.11% | ||||||||||
R6 Class | $1,000 | $915.10 | $6.03 | 1.26% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,016.95 | $8.12 | 1.61% | ||||||||||
I Class | $1,000 | $1,017.95 | $7.11 | 1.41% | ||||||||||
A Class | $1,000 | $1,015.70 | $9.37 | 1.86% | ||||||||||
C Class | $1,000 | $1,011.95 | $13.13 | 2.61% | ||||||||||
R Class | $1,000 | $1,014.45 | $10.63 | 2.11% | ||||||||||
R6 Class | $1,000 | $1,018.70 | $6.36 | 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 183, the number of days in the most recent fiscal half-year, divided by 366, 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, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 98.6% | ||||||||
Argentina — 2.1% | ||||||||
Globant SA(1) | 1,310 | $ | 183,675 | |||||
Brazil — 7.5% | ||||||||
Arco Platform Ltd., Class A(1) | 2,355 | 114,170 | ||||||
Banco Inter SA | 14,094 | 85,521 | ||||||
Cia Brasileira de Distribuicao | 4,700 | 54,598 | ||||||
Equatorial Energia SA(1) | 28,700 | 107,404 | ||||||
Fleury SA | 20,200 | 89,146 | ||||||
Magazine Luiza SA | 8,927 | 108,236 | ||||||
TOTVS SA | 25,800 | 97,276 | ||||||
656,351 | ||||||||
Chile — 0.6% | ||||||||
Geopark Ltd. | 6,059 | 51,320 | ||||||
China — 20.2% | ||||||||
21Vianet Group, Inc., ADR(1) | 2,734 | 39,916 | ||||||
A-Living Services Co. Ltd., H Shares | 41,500 | 223,542 | ||||||
China East Education Holdings Ltd. | 63,000 | 124,246 | ||||||
China Education Group Holdings Ltd. | 80,000 | 138,624 | ||||||
China Lesso Group Holdings Ltd. | 78,000 | 94,954 | ||||||
China Resources Cement Holdings Ltd. | 40,000 | 50,526 | ||||||
China Yongda Automobiles Services Holdings Ltd. | 83,000 | 86,690 | ||||||
CIFI Holdings Group Co. Ltd. | 180,570 | 130,520 | ||||||
Country Garden Services Holdings Co. Ltd. | 43,000 | 202,346 | ||||||
GDS Holdings Ltd., ADR(1) | 3,369 | 192,033 | ||||||
GSX Techedu, Inc., ADR(1) | 1,373 | 43,057 | ||||||
Li Ning Co. Ltd. | 18,000 | 60,731 | ||||||
TAL Education Group, ADR(1) | 1,663 | 93,893 | ||||||
Times China Holdings Ltd. | 94,000 | 138,598 | ||||||
West China Cement Ltd. | 828,000 | 154,476 | ||||||
1,774,152 | ||||||||
Egypt — 0.5% | ||||||||
Juhayna Food Industries | 96,679 | 45,170 | ||||||
Greece — 1.9% | ||||||||
Eurobank Ergasias Services and Holdings SA(1) | 45,443 | 19,315 | ||||||
JUMBO SA | 4,464 | 81,150 | ||||||
OPAP SA | 7,336 | 68,694 | ||||||
169,159 | ||||||||
Hong Kong — 1.8% | ||||||||
Comba Telecom Systems Holdings Ltd. | 396,000 | 156,414 | ||||||
India — 9.0% | ||||||||
Bata India Ltd. | 2,685 | 47,023 | ||||||
Berger Paints India Ltd. | 8,686 | 56,553 | ||||||
Crompton Greaves Consumer Electricals Ltd. | 14,816 | 44,088 | ||||||
Indraprastha Gas Ltd. | 17,388 | 108,254 | ||||||
Jubilant Foodworks Ltd. | 4,246 | 92,972 | ||||||
L&T Technology Services Ltd. | 3,305 | 51,117 |
6
Shares | Value | |||||||
Larsen & Toubro Infotech Ltd. | 5,412 | $ | 128,494 | |||||
Prestige Estates Projects Ltd. | 15,899 | 33,051 | ||||||
Torrent Pharmaceuticals Ltd. | 4,428 | 138,116 | ||||||
Zydus Wellness Ltd. | 5,102 | 84,685 | ||||||
784,353 | ||||||||
Indonesia — 3.8% | ||||||||
Ace Hardware Indonesia Tbk PT(1) | 439,100 | 46,815 | ||||||
Bank Tabungan Pensiunan Nasional Syariah Tbk PT | 266,400 | 52,579 | ||||||
Jasa Marga Persero Tbk PT(1) | 253,800 | 61,829 | ||||||
Mitra Adiperkasa Tbk PT(1) | 1,006,700 | 50,073 | ||||||
Semen Indonesia Persero Tbk PT | 82,200 | 55,281 | ||||||
XL Axiata Tbk PT(1) | 359,700 | 63,929 | ||||||
330,506 | ||||||||
Malaysia — 2.1% | ||||||||
Carlsberg Brewery Malaysia Bhd | 12,100 | 80,622 | ||||||
Top Glove Corp. Bhd | 34,700 | 106,310 | ||||||
186,932 | ||||||||
Philippines — 1.9% | ||||||||
Bloomberry Resorts Corp. | 378,500 | 46,413 | ||||||
International Container Terminal Services, Inc. | 21,770 | 37,761 | ||||||
Wilcon Depot, Inc. | 259,800 | 77,399 | ||||||
161,573 | ||||||||
Russia — 1.9% | ||||||||
TCS Group Holding plc, GDR | 4,907 | 85,602 | ||||||
Yandex NV, A Shares(1) | 2,052 | 82,552 | ||||||
168,154 | ||||||||
Saudi Arabia — 0.9% | ||||||||
Leejam Sports Co. JSC | 5,580 | 82,517 | ||||||
South Africa — 2.2% | ||||||||
Capitec Bank Holdings Ltd. | 1,066 | 51,831 | ||||||
Clicks Group Ltd.(1) | 8,132 | 108,213 | ||||||
JSE Ltd. | 5,232 | 35,771 | ||||||
195,815 | ||||||||
South Korea — 12.1% | ||||||||
CJ Logistics Corp.(1) | 1,043 | 135,755 | ||||||
Doosan Bobcat, Inc. | 2,649 | 50,881 | ||||||
GS Retail Co. Ltd. | 1,278 | 44,051 | ||||||
Han Kuk Carbon Co. Ltd. | 22,061 | 146,106 | ||||||
Hotel Shilla Co. Ltd. | 1,157 | 74,407 | ||||||
Iljin Materials Co. Ltd. | 3,353 | 126,829 | ||||||
Koh Young Technology, Inc. | 997 | 75,430 | ||||||
LG Innotek Co. Ltd. | 1,118 | 133,647 | ||||||
LG Uplus Corp. | 3,856 | 41,038 | ||||||
Orion Corp/Republic of Korea | 1,288 | 137,531 | ||||||
Studio Dragon Corp.(1) | 1,534 | 94,713 | ||||||
1,060,388 | ||||||||
Taiwan — 22.2% | ||||||||
Accton Technology Corp. | 14,000 | 112,778 | ||||||
Airtac International Group | 7,000 | 120,306 | ||||||
Alchip Technologies Ltd. | 15,000 | 149,957 | ||||||
Asia Cement Corp. | 80,000 | 116,163 | ||||||
ASPEED Technology, Inc. | 5,000 | 258,344 |
7
Shares | Value | |||||||
Chailease Holding Co. Ltd. | 49,728 | $ | 193,336 | |||||
Chaun-Choung Technology Corp. | 7,000 | 57,608 | ||||||
Giant Manufacturing Co. Ltd. | 6,000 | 47,044 | ||||||
ITEQ Corp. | 38,000 | 171,096 | ||||||
Merida Industry Co. Ltd. | 24,000 | 144,114 | ||||||
Powertech Technology, Inc. | 40,000 | 129,398 | ||||||
Realtek Semiconductor Corp. | 14,000 | 120,747 | ||||||
Taiwan Union Technology Corp. | 36,000 | 165,720 | ||||||
Vanguard International Semiconductor Corp. | 38,000 | 93,133 | ||||||
Win Semiconductors Corp. | 8,000 | 68,509 | ||||||
1,948,253 | ||||||||
Thailand — 4.9% | ||||||||
Digital Telecommunications Infrastructure Fund | 387,900 | 193,518 | ||||||
Muangthai Capital PCL | 63,400 | 110,517 | ||||||
Srisawad Corp. PCL(1) | 68,660 | 123,368 | ||||||
427,403 | ||||||||
Turkey — 1.8% | ||||||||
Mavi Giyim Sanayi Ve Ticaret AS, B Shares(1) | 6,764 | 44,904 | ||||||
Sok Marketler Ticaret AS(1) | 67,869 | 116,631 | ||||||
161,535 | ||||||||
United Kingdom — 1.2% | ||||||||
Network International Holdings plc(1) | 17,994 | 103,769 | ||||||
TOTAL COMMON STOCKS
(Cost $7,719,677) | 8,647,439 | |||||||
TEMPORARY CASH INVESTMENTS — 1.2% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.25%, 5/15/25 - 2/15/27, valued at $109,566), in a joint trading account at 0.01%, dated 5/29/20, due 6/1/20 (Delivery value $107,347) | 107,347 | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 248 | 248 | ||||||
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $107,595) | 107,595 | |||||||
TOTAL INVESTMENT SECURITIES — 99.8%
(Cost $7,827,272) | 8,755,034 | |||||||
OTHER ASSETS AND LIABILITIES — 0.2% | 13,205 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 8,768,239 |
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Information Technology | 31.5 | % | |||
Consumer Discretionary | 19.6 | % | |||
Industrials | 11.2 | % | |||
Financials | 8.7 | % | |||
Consumer Staples | 7.6 | % | |||
Materials | 6.5 | % | |||
Health Care | 3.8 | % | |||
Real Estate | 3.5 | % | |||
Communication Services | 3.2 | % | |||
Utilities | 2.4 | % | |||
Energy | 0.6 | % | |||
Cash and Equivalents* | 1.4 | % |
*Includes temporary cash investments and other assets and liabilities.
8
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||||||||
ADR | - | American Depositary Receipt | ||||||||||||
GDR | - | Global Depositary Receipt |
(1) Non-income producing.
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2020 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $7,827,272) | $ | 8,755,034 | |||
Foreign currency holdings, at value (cost of $23) | 22 | ||||
Receivable for capital shares sold | 45,131 | ||||
Dividends and interest receivable | 25,932 | ||||
Other assets | 568 | ||||
8,826,687 | |||||
Liabilities | |||||
Payable for investments purchased | 40,050 | ||||
Payable for capital shares redeemed | 6,736 | ||||
Accrued management fees | 10,849 | ||||
Distribution and service fees payable | 813 | ||||
58,448 | |||||
Net Assets | $ | 8,768,239 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 8,562,912 | |||
Distributable earnings | 205,327 | ||||
$ | 8,768,239 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $3,973,467 | 348,639 | $11.40 | ||||||||
I Class, $0.01 Par Value | $2,885,632 | 252,539 | $11.43 | ||||||||
A Class, $0.01 Par Value | $801,734 | 70,540 | $11.37* | ||||||||
C Class, $0.01 Par Value | $621,838 | 55,633 | $11.18 | ||||||||
R Class, $0.01 Par Value | $353,793 | 31,264 | $11.32 | ||||||||
R6 Class, $0.01 Par Value | $131,775 | 11,513 | $11.45 |
*Maximum offering price $12.06 (net asset value divided by 0.9425).
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $6,061) | $ | 73,735 | |||
Securities lending, net | 1,005 | ||||
Interest | 514 | ||||
75,254 | |||||
Expenses: | |||||
Management fees | 69,601 | ||||
Distribution and service fees: | |||||
A Class | 1,027 | ||||
C Class | 3,252 | ||||
R Class | 842 | ||||
Directors' fees and expenses | 144 | ||||
Other expenses | 185 | ||||
75,051 | |||||
Net investment income (loss) | 203 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions (net of foreign tax expenses paid (refunded) of $(603)) | (336,315) | ||||
Foreign currency translation transactions | (14,749) | ||||
(351,064) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments (includes (increase) decrease in accrued foreign taxes of $4,924) | (493,161) | ||||
Translation of assets and liabilities in foreign currencies | 24 | ||||
(493,137) | |||||
Net realized and unrealized gain (loss) | (844,201) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (843,998) |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2019 | ||||||||||||||
Increase (Decrease) in Net Assets | May 31, 2020 | November 30, 2019 | ||||||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 203 | $ | 33,440 | ||||||||||
Net realized gain (loss) | (351,064) | (305,445) | ||||||||||||
Change in net unrealized appreciation (depreciation) | (493,137) | 1,379,222 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | (843,998) | 1,107,217 | ||||||||||||
Distributions to Shareholders | ||||||||||||||
From earnings: | ||||||||||||||
Investor Class | (18,004) | (211,250) | ||||||||||||
I Class | (14,053) | (47,717) | ||||||||||||
A Class | (971) | (42,563) | ||||||||||||
C Class | — | (41,460) | ||||||||||||
R Class | — | (13,422) | ||||||||||||
R6 Class | (1,053) | (8,507) | ||||||||||||
Decrease in net assets from distributions | (34,081) | (364,919) | ||||||||||||
Capital Share Transactions | ||||||||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 480,482 | (1,788,460) | ||||||||||||
Net increase (decrease) in net assets | (397,597) | (1,046,162) | ||||||||||||
Net Assets | ||||||||||||||
Beginning of period | 9,165,836 | 10,211,998 | ||||||||||||
End of period | $ | 8,768,239 | $ | 9,165,836 | ||||||||||
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2020 (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.
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. 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. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
14
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.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
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 ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class.
The 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% |
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, 2020 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2020 were $3,155,010 and $2,588,274, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2020 | Year ended November 30, 2019 | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Investor Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||||||||
Sold | 83,991 | $ | 1,044,220 | 135,086 | $ | 1,622,100 | ||||||||||||||
Issued in reinvestment of distributions | 1,277 | 16,531 | 19,297 | 210,336 | ||||||||||||||||
Redeemed | (117,171) | (1,375,445) | (281,199) | (3,374,805) | ||||||||||||||||
(31,903) | (314,694) | (126,816) | (1,542,369) | |||||||||||||||||
I Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 72,323 | 835,765 | 120,968 | 1,458,880 | ||||||||||||||||
Issued in reinvestment of distributions | 1,084 | 14,053 | 4,370 | 47,717 | ||||||||||||||||
Redeemed | (10,792) | (125,487) | (46,951) | (576,122) | ||||||||||||||||
62,615 | 724,331 | 78,387 | 930,475 | |||||||||||||||||
A Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 2,082 | 22,093 | 11,855 | 129,000 | ||||||||||||||||
Issued in reinvestment of distributions | 75 | 971 | 3,908 | 42,563 | ||||||||||||||||
Redeemed | — | — | (51,108) | (623,555) | ||||||||||||||||
2,157 | 23,064 | (35,345) | (451,992) | |||||||||||||||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Issued in reinvestment of distributions | — | — | 3,835 | 41,460 | ||||||||||||||||
Redeemed | — | — | (48,347) | (585,000) | ||||||||||||||||
— | — | (44,512) | (543,540) | |||||||||||||||||
R Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||||||||
Sold | 7,908 | 89,584 | 8,751 | 103,794 | ||||||||||||||||
Issued in reinvestment of distributions | — | — | 1,235 | 13,422 | ||||||||||||||||
Redeemed | (3,676) | (42,856) | (15,170) | (184,757) | ||||||||||||||||
4,232 | 46,728 | (5,184) | (67,541) | |||||||||||||||||
R6 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||||||||
Issued in reinvestment of distributions | 81 | 1,053 | 778 | 8,507 | ||||||||||||||||
Redeemed | — | — | (9,894) | (122,000) | ||||||||||||||||
81 | 1,053 | (9,116) | (113,493) | |||||||||||||||||
Net increase (decrease) | 37,182 | $ | 480,482 | (142,586) | $ | (1,788,460) |
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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.
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 | $ | 183,675 | — | — | |||||||
Brazil | 114,170 | $ | 542,181 | — | |||||||
Chile | 51,320 | — | — | ||||||||
China | 368,899 | 1,405,253 | — | ||||||||
Russia | 82,552 | 85,602 | — | ||||||||
Other Countries | — | 5,813,787 | — | ||||||||
Temporary Cash Investments | 248 | 107,347 | — | ||||||||
$ | 800,864 | $ | 7,954,170 | — |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund 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.
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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 | $ | 7,872,040 | |||
Gross tax appreciation of investments | $ | 1,573,517 | |||
Gross tax depreciation of investments | (690,523) | ||||
Net tax appreciation (depreciation) of investments | $ | 882,994 |
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, 2019, the fund had accumulated short-term capital losses of $(277,551), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
As of November 30, 2019, the fund had post-October capital loss deferrals of $(41,347), which represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.52 | —(4) | (1.07) | (1.07) | (0.05) | — | (0.05) | $11.40 | (8.62)% | 1.61%(5) | 0.05%(5) | 29% | $3,973 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.68 | 0.05 | 1.20 | 1.25 | — | (0.41) | (0.41) | $12.52 | 11.36% | 1.61% | 0.43% | 67% | $4,764 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.66 | 0.04 | (1.86) | (1.82) | (0.14) | (0.02) | (0.16) | $11.68 | (13.59)% | 1.60% | 0.31% | 75% | $5,924 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.56 | 0.02 | (1.08) | (1.06) | (0.07) | — | (0.07) | $11.43 | (8.49)% | 1.41%(5) | 0.25%(5) | 29% | $2,886 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.69 | 0.07 | 1.21 | 1.28 | — | (0.41) | (0.41) | $12.56 | 11.52% | 1.41% | 0.63% | 67% | $2,386 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.68 | 0.06 | (1.86) | (1.80) | (0.17) | (0.02) | (0.19) | $11.69 | (13.39)% | 1.40% | 0.51% | 75% | $1,304 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.47 | (0.01) | (1.08) | (1.09) | (0.01) | — | (0.01) | $11.37 | (8.80)% | 1.86%(5) | (0.20)%(5) | 29% | $802 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.66 | 0.02 | 1.20 | 1.22 | — | (0.41) | (0.41) | $12.47 | 11.11% | 1.86% | 0.18% | 67% | $853 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.64 | 0.01 | (1.86) | (1.85) | (0.11) | (0.02) | (0.13) | $11.66 | (13.82)% | 1.85% | 0.06% | 75% | $1,209 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
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) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.29 | (0.06) | (1.05) | (1.11) | — | — | — | $11.18 | (9.03)% | 2.61%(5) | (0.95)%(5) | 29% | $622 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.58 | (0.07) | 1.19 | 1.12 | — | (0.41) | (0.41) | $12.29 | 10.20% | 2.61% | (0.57)% | 67% | $684 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.55 | (0.10) | (1.85) | (1.95) | —(4) | (0.02) | (0.02) | $11.58 | (14.41)% | 2.60% | (0.69)% | 75% | $1,160 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.42 | (0.02) | (1.08) | (1.10) | — | — | — | $11.32 | (8.78)% | 2.11%(5) | (0.45)%(5) | 29% | $354 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.64 | (0.01) | 1.20 | 1.19 | — | (0.41) | (0.41) | $12.42 | 10.68% | 2.11% | (0.07)% | 67% | $336 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.62 | (0.03) | (1.86) | (1.89) | (0.07) | (0.02) | (0.09) | $11.64 | (13.98)% | 2.10% | (0.19)% | 75% | $375 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.59 | 0.02 | (1.07) | (1.05) | (0.09) | — | (0.09) | $11.45 | (8.49)% | 1.26%(5) | 0.40%(5) | 29% | $132 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.70 | 0.09 | 1.21 | 1.30 | — | (0.41) | (0.41) | $12.59 | 11.68% | 1.26% | 0.78% | 67% | $144 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.69 | 0.08 | (1.86) | (1.78) | (0.19) | (0.02) | (0.21) | $11.70 | (13.25)% | 1.25% | 0.66% | 75% | $240 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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)Six months ended May 31, 2020 (unaudited).
(4)Per-share amount was less than $0.005.
(5)Annualized.
(6)April 7, 2016 (fund inception) through November 30, 2016.
See Notes to Financial Statements.
Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2018 through December 31, 2019. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
22
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 American Century Investments’ website at americancentury.com/proxy 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 americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange
Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on
Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its
fiscal year available on its website at americancentury.com and, upon request, by calling
1-800-345-2021.
23
Notes |
24
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Contact Us | americancentury.com | ||||||||||
Automated Information Line | 1-800-345-8765 | ||||||||||
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | ||||||||||
Investors Using Advisors | 1-800-378-9878 | ||||||||||
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | ||||||||||
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | ||||||||||
Telecommunications Relay Service for the Deaf | 711 | ||||||||||
American Century World Mutual Funds, Inc. | |||||||||||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |||||||||||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | |||||||||||
©2020 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92636 2007 |
![image291.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image291.jpg)
Semiannual Report | |||||
May 31, 2020 | |||||
Focused 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) |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.
You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Table of Contents |
President’s Letter | |||||
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Liquidity Risk Management Program | |||||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514a141.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/jthomasrev0514a141.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2020. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Pandemic Led to Severe Economic, Market Disruptions
Early in the reporting period, market sentiment was generally upbeat. Dovish central banks, modest inflation, improving economic and corporate earnings data, and U.S.-China trade-policy progress helped boost global growth outlooks. Against this backdrop, key U.S. stock benchmarks rose to new highs in mid-February, and risk assets largely remained in favor throughout the world.
However, beginning in late February, unprecedented social, health care and economic turmoil quickly quashed the optimistic tone. The COVID-19 outbreak rapidly spread throughout the world, halting most economic activity and triggering worldwide recession fears. Adding to the turmoil, global oil prices collapsed amid plunging demand and a price war between Saudi Arabia and Russia. Global stocks and other riskier assets sold off sharply as investors fled to safe-haven investments.
Central banks and federal governments stepped in quickly and aggressively to stabilize global markets and provide financial relief. These extraordinary efforts proved helpful, as markets broadly rebounded in April and May despite discouraging economic and corporate earnings data. In addition, declining coronavirus infection rates and the reopening of many economies helped fuel the recovery. But the rebound wasn’t enough to offset the effects of the earlier sell-off, and global stocks retreated for the six-month period. U.S. stocks fared better than non-U.S. stocks. Among non-U.S. stocks, developed markets generally declined at a greater pace than emerging markets.
As COVID-19 infections are slowing, most economies across the world are reopening. Nevertheless, the return to pre-pandemic economic and market levels will take time and patience. In the meantime, investors likely will face periods of economic and political uncertainty and heightened market volatility. While these influences can be unsettling, they tend to be temporary.
We appreciate your confidence in us during these extraordinary times. We have a long history of helping clients weather unpredictable markets, and we’re confident we will meet today's challenges.
Sincerely,
![image231.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image231.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2020 | |||||
Top Ten Holdings | % of net assets | ||||
Amazon.com, Inc. | 5.2% | ||||
Alibaba Group Holding Ltd., ADR | 3.6% | ||||
Lowe's Cos., Inc. | 3.2% | ||||
Avantor, Inc. | 3.1% | ||||
Monster Beverage Corp. | 3.1% | ||||
London Stock Exchange Group plc | 3.0% | ||||
B3 SA - Brasil Bolsa Balcao | 3.0% | ||||
Bio-Rad Laboratories, Inc., Class A | 3.0% | ||||
Lonza Group AG | 3.0% | ||||
ServiceNow, Inc. | 2.9% | ||||
Types of Investments in Portfolio | % of net assets | ||||
Domestic Common Stocks | 70.1% | ||||
Foreign Common Stocks | 29.5% | ||||
Total Common Stocks | 99.6% | ||||
Temporary Cash Investments | 0.5% | ||||
Other Assets and Liabilities | (0.1)% | ||||
Investments by Country | % of net assets | ||||
United States | 70.1% | ||||
Switzerland | 5.5% | ||||
Hong Kong | 5.2% | ||||
China | 3.6% | ||||
United Kingdom | 3.0% | ||||
Brazil | 3.0% | ||||
Japan | 2.7% | ||||
India | 2.6% | ||||
Netherlands | 2.6% | ||||
Other Countries | 1.3% | ||||
Cash and Equivalents* | 0.4% |
*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, 2019 to May 31, 2020.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
4
Beginning Account Value 12/1/19 | Ending Account Value 5/31/20 | Expenses Paid During Period(1) 12/1/19 - 5/31/20 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,019.80 | $5.45 | 1.08% | ||||||||||
I Class | $1,000 | $1,020.80 | $4.45 | 0.88% | ||||||||||
Y Class | $1,000 | $1,022.40 | $3.69 | 0.73% | ||||||||||
A Class | $1,000 | $1,019.50 | $6.71 | 1.33% | ||||||||||
C Class | $1,000 | $1,015.20 | $10.48 | 2.08% | ||||||||||
R Class | $1,000 | $1,018.20 | $7.97 | 1.58% | ||||||||||
R5 Class | $1,000 | $1,020.80 | $4.45 | 0.88% | ||||||||||
R6 Class | $1,000 | $1,021.70 | $3.69 | 0.73% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,019.60 | $5.45 | 1.08% | ||||||||||
I Class | $1,000 | $1,020.60 | $4.45 | 0.88% | ||||||||||
Y Class | $1,000 | $1,021.35 | $3.69 | 0.73% | ||||||||||
A Class | $1,000 | $1,018.35 | $6.71 | 1.33% | ||||||||||
C Class | $1,000 | $1,014.60 | $10.48 | 2.08% | ||||||||||
R Class | $1,000 | $1,017.10 | $7.97 | 1.58% | ||||||||||
R5 Class | $1,000 | $1,020.60 | $4.45 | 0.88% | ||||||||||
R6 Class | $1,000 | $1,021.35 | $3.69 | 0.73% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 366, 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, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.6% | ||||||||
Brazil — 3.0% | ||||||||
B3 SA - Brasil Bolsa Balcao | 2,037,200 | $ | 17,412,194 | |||||
China — 3.6% | ||||||||
Alibaba Group Holding Ltd., ADR(1) | 100,300 | 20,801,217 | ||||||
Hong Kong — 5.2% | ||||||||
AIA Group Ltd. | 1,671,200 | 13,624,932 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 473,283 | 16,559,522 | ||||||
30,184,454 | ||||||||
Hungary — 1.3% | ||||||||
OTP Bank Nyrt(1) | 224,353 | 7,473,184 | ||||||
India — 2.6% | ||||||||
HDFC Bank Ltd. | 1,191,180 | 15,018,667 | ||||||
Japan — 2.7% | ||||||||
Shiseido Co. Ltd. | 255,200 | 15,578,244 | ||||||
Netherlands — 2.6% | ||||||||
NXP Semiconductors NV | 154,820 | 14,878,202 | ||||||
Switzerland — 5.5% | ||||||||
Lonza Group AG | 35,100 | 17,283,544 | ||||||
Zurich Insurance Group AG | 46,220 | 14,954,099 | ||||||
32,237,643 | ||||||||
United Kingdom — 3.0% | ||||||||
London Stock Exchange Group plc | 177,791 | 17,701,452 | ||||||
United States — 70.1% | ||||||||
Adobe, Inc.(1) | 42,577 | 16,460,268 | ||||||
Amazon.com, Inc.(1) | 12,348 | 30,158,385 | ||||||
American Express Co. | 154,050 | 14,645,534 | ||||||
Aptiv plc | 214,770 | 16,182,919 | ||||||
Avantor, Inc.(1) | 958,840 | 18,189,195 | ||||||
Bio-Rad Laboratories, Inc., Class A(1) | 35,304 | 17,345,561 | ||||||
Boston Scientific Corp.(1) | 433,595 | 16,472,274 | ||||||
Charles Schwab Corp. (The) | 402,318 | 14,447,239 | ||||||
Cheniere Energy, Inc.(1) | 337,650 | 14,974,778 | ||||||
Danaher Corp. | 89,725 | 14,949,082 | ||||||
Equinix, Inc. | 22,786 | 15,896,197 | ||||||
Fidelity National Information Services, Inc. | 116,507 | 16,174,667 | ||||||
FMC Corp. | 159,100 | 15,657,031 | ||||||
HEICO Corp. | 118,100 | 11,899,756 | ||||||
IHS Markit Ltd. | 225,540 | 15,666,008 | ||||||
L3Harris Technologies, Inc. | 76,690 | 15,295,821 | ||||||
Lowe's Cos., Inc. | 142,440 | 18,567,054 | ||||||
MasterCard, Inc., Class A | 53,630 | 16,136,731 | ||||||
Monster Beverage Corp.(1) | 247,850 | 17,822,893 | ||||||
MSCI, Inc. | 46,040 | 15,140,254 | ||||||
Pioneer Natural Resources Co. | 117,758 | 10,786,633 | ||||||
ServiceNow, Inc.(1) | 43,200 | 16,758,576 | ||||||
Teleflex, Inc. | 43,688 | 15,852,628 |
6
Shares | Value | |||||||
Texas Instruments, Inc. | 129,100 | $ | 15,329,334 | |||||
Visa, Inc., Class A | 84,792 | 16,554,790 | ||||||
407,363,608 | ||||||||
TOTAL COMMON STOCKS
(Cost $472,404,356) | 578,648,865 | |||||||
TEMPORARY CASH INVESTMENTS — 0.5% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.25%, 5/15/25 - 2/15/27, valued at $1,068,725), in a joint trading account at 0.01%, dated 5/29/20, due 6/1/20 (Delivery value $1,047,080) | 1,047,079 | |||||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 0.50%, 4/15/24, valued at $1,721,592), at 0.03%, dated 5/29/20, due 6/1/20 (Delivery value $1,687,004) | 1,687,000 | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 2,419 | 2,419 | ||||||
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $2,736,498) | 2,736,498 | |||||||
TOTAL INVESTMENT SECURITIES — 100.1%
(Cost $475,140,854) | 581,385,363 | |||||||
OTHER ASSETS AND LIABILITIES — (0.1)% | (341,787) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 581,043,576 |
MARKET SECTOR DIVERSIFICATION | ||||||||
(as a % of net assets) | ||||||||
Financials | 25.2 | % | ||||||
Information Technology | 19.4 | % | ||||||
Health Care | 17.2 | % | ||||||
Consumer Discretionary | 14.8 | % | ||||||
Industrials | 7.3 | % | ||||||
Consumer Staples | 5.8 | % | ||||||
Energy | 4.5 | % | ||||||
Real Estate | 2.7 | % | ||||||
Materials | 2.7 | % | ||||||
Cash and Equivalents* | 0.4 | % |
*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, 2020 (UNAUDITED) | ||||||||
Assets | ||||||||
Investment securities, at value (cost of $475,140,854) | $ | 581,385,363 | ||||||
Foreign currency holdings, at value (cost of $49) | 49 | |||||||
Receivable for capital shares sold | 122,295 | |||||||
Dividends and interest receivable | 343,918 | |||||||
Other assets | 1,158 | |||||||
581,852,783 | ||||||||
Liabilities | ||||||||
Payable for capital shares redeemed | 322,147 | |||||||
Accrued management fees | 475,233 | |||||||
Distribution and service fees payable | 11,827 | |||||||
809,207 | ||||||||
Net Assets | $ | 581,043,576 | ||||||
Net Assets Consist of: | ||||||||
Capital (par value and paid-in surplus) | $ | 421,447,799 | ||||||
Distributable earnings | 159,595,777 | |||||||
$ | 581,043,576 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $434,526,572 | 37,156,870 | $11.69 | ||||||||
I Class, $0.01 Par Value | $39,075,111 | 3,260,566 | $11.98 | ||||||||
Y Class, $0.01 Par Value | $200,709 | 16,632 | $12.07 | ||||||||
A Class, $0.01 Par Value | $25,758,310 | 2,296,733 | $11.22* | ||||||||
C Class, $0.01 Par Value | $4,494,500 | 495,898 | $9.06 | ||||||||
R Class, $0.01 Par Value | $7,226,258 | 662,026 | $10.92 | ||||||||
R5 Class, $0.01 Par Value | $7,389 | 617 | $11.98 | ||||||||
R6 Class, $0.01 Par Value | $69,754,727 | 5,788,821 | $12.05 |
*Maximum offering price $11.90 (net asset value divided by 0.9425).
See Notes to Financial Statements.
8
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) | ||||||||
Investment Income (Loss) | ||||||||
Income: | ||||||||
Dividends (net of foreign taxes withheld of $157,644) | $ | 2,921,455 | ||||||
Interest | 14,393 | |||||||
2,935,848 | ||||||||
Expenses: | ||||||||
Management fees | 2,830,404 | |||||||
Distribution and service fees: | ||||||||
A Class | 32,196 | |||||||
C Class | 23,287 | |||||||
R Class | 17,805 | |||||||
Directors' fees and expenses | 8,840 | |||||||
Other expenses | 9,787 | |||||||
2,922,319 | ||||||||
Net investment income (loss) | 13,529 | |||||||
Realized and Unrealized Gain (Loss) | ||||||||
Net realized gain (loss) on: | ||||||||
Investment transactions (net of foreign tax expenses paid (refunded) of $30,486) | 56,650,783 | |||||||
Foreign currency translation transactions | (102,164) | |||||||
56,548,619 | ||||||||
Change in net unrealized appreciation (depreciation) on: | ||||||||
Investments (includes (increase) decrease in accrued foreign taxes of $72,678) | (40,568,229) | |||||||
Translation of assets and liabilities in foreign currencies | 5,647 | |||||||
(40,562,582) | ||||||||
Net realized and unrealized gain (loss) | 15,986,037 | |||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 15,999,566 |
See Notes to Financial Statements.
9
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2019 | ||||||||||||||
Increase (Decrease) in Net Assets | May 31, 2020 | November 30, 2019 | ||||||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 13,529 | $ | 459,057 | ||||||||||
Net realized gain (loss) | 56,548,619 | 93,175,825 | ||||||||||||
Change in net unrealized appreciation (depreciation) | (40,562,582) | 13,822,059 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 15,999,566 | 107,456,941 | ||||||||||||
Distributions to Shareholders | ||||||||||||||
From earnings: | ||||||||||||||
Investor Class | (70,603,884) | (36,935,706) | ||||||||||||
I Class | (4,139,998) | (1,467,077) | ||||||||||||
Y Class | (46,321) | (546) | ||||||||||||
A Class | (4,387,898) | (2,409,311) | ||||||||||||
C Class | (962,993) | (500,817) | ||||||||||||
R Class | (1,212,750) | (660,873) | ||||||||||||
R5 Class | (1,131) | (540) | ||||||||||||
R6 Class | (6,775,967) | (4,427,325) | ||||||||||||
Decrease in net assets from distributions | (88,130,942) | (46,402,195) | ||||||||||||
Capital Share Transactions | ||||||||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 69,026,114 | 12,249,882 | ||||||||||||
Net increase (decrease) in net assets | (3,105,262) | 73,304,628 | ||||||||||||
Net Assets | ||||||||||||||
Beginning of period | 584,148,838 | 510,844,210 | ||||||||||||
End of period | $ | 581,043,576 | $ | 584,148,838 | ||||||||||
See Notes to Financial Statements.
10
Notes to Financial Statements |
MAY 31, 2020 (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 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.
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. 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.
12
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.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The 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, 2020 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, 2020 are detailed in the Statement of Operations.
13
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 $367,977 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $223,752 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, 2020 were $379,792,340 and $395,879,093, respectively.
14
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2020 | Year ended November 30, 2019 | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Investor Class/Shares Authorized | 450,000,000 | 450,000,000 | ||||||||||||||||||
Sold | 2,799,088 | $ | 31,604,366 | 2,039,625 | $ | 25,196,722 | ||||||||||||||
Issued in reinvestment of distributions | 5,805,629 | 68,462,968 | 3,477,530 | 35,957,657 | ||||||||||||||||
Redeemed | (4,716,035) | (54,100,525) | (5,409,998) | (65,892,519) | ||||||||||||||||
3,888,682 | 45,966,809 | 107,157 | (4,738,140) | |||||||||||||||||
I Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||||||||
Sold | 1,738,934 | 18,866,326 | 1,077,089 | 13,794,877 | ||||||||||||||||
Issued in reinvestment of distributions | 342,162 | 4,129,640 | 138,538 | 1,461,572 | ||||||||||||||||
Redeemed | (861,137) | (9,812,297) | (464,877) | (5,764,381) | ||||||||||||||||
1,219,959 | 13,183,669 | 750,750 | 9,492,068 | |||||||||||||||||
Y Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||||||||
Sold | — | — | 22,544 | 303,359 | ||||||||||||||||
Issued in reinvestment of distributions | 3,811 | 46,321 | 51 | 546 | ||||||||||||||||
Redeemed | (8,639) | (105,685) | (1,693) | (22,088) | ||||||||||||||||
(4,828) | (59,364) | 20,902 | 281,817 | |||||||||||||||||
A Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||||||||
Sold | 289,635 | 3,239,267 | 290,672 | 3,485,724 | ||||||||||||||||
Issued in reinvestment of distributions | 375,963 | 4,257,021 | 233,037 | 2,332,697 | ||||||||||||||||
Redeemed | (427,869) | (4,610,483) | (660,400) | (7,718,982) | ||||||||||||||||
237,729 | 2,885,805 | (136,691) | (1,900,561) | |||||||||||||||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 37,735 | 343,774 | 116,094 | 1,060,561 | ||||||||||||||||
Issued in reinvestment of distributions | 95,662 | 879,003 | 52,006 | 441,007 | ||||||||||||||||
Redeemed | (88,271) | (788,337) | (169,103) | (1,654,534) | ||||||||||||||||
45,126 | 434,440 | (1,003) | (152,966) | |||||||||||||||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 83,028 | 893,632 | 130,276 | 1,543,815 | ||||||||||||||||
Issued in reinvestment of distributions | 109,728 | 1,210,541 | 67,219 | 660,090 | ||||||||||||||||
Redeemed | (112,589) | (1,175,024) | (210,738) | (2,489,964) | ||||||||||||||||
80,167 | 929,149 | (13,243) | (286,059) | |||||||||||||||||
R5 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||||||||
Issued in reinvestment of distributions | 94 | 1,131 | 51 | 540 | ||||||||||||||||
R6 Class/Shares Authorized | 65,000,000 | 65,000,000 | ||||||||||||||||||
Sold | 2,958,026 | 31,632,349 | 1,443,634 | 17,087,804 | ||||||||||||||||
Issued in reinvestment of distributions | 463,745 | 5,619,736 | 418,067 | 4,427,325 | ||||||||||||||||
Redeemed | (2,364,807) | (31,567,610) | (940,824) | (11,961,946) | ||||||||||||||||
1,056,964 | 5,684,475 | 920,877 | 9,553,183 | |||||||||||||||||
Net increase (decrease) | 6,523,893 | $ | 69,026,114 | 1,648,800 | $ | 12,249,882 |
15
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||
Investment Securities | |||||||||||
Common Stocks | |||||||||||
Brazil | — | $ | 17,412,194 | — | |||||||
Hong Kong | — | 30,184,454 | — | ||||||||
Hungary | — | 7,473,184 | — | ||||||||
India | — | 15,018,667 | — | ||||||||
Japan | — | 15,578,244 | — | ||||||||
Switzerland | — | 32,237,643 | — | ||||||||
United Kingdom | — | 17,701,452 | — | ||||||||
Other Countries | $ | 443,043,027 | — | — | |||||||
Temporary Cash Investments | 2,419 | 2,734,079 | — | ||||||||
$ | 443,045,446 | $ | 138,339,917 | — |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund’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.
16
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 479,974,782 | |||
Gross tax appreciation of investments | $ | 124,578,458 | |||
Gross tax depreciation of investments | (23,167,877) | ||||
Net tax appreciation (depreciation) of investments | $ | 101,410,581 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $13.54 | —(4) | 0.27 | 0.27 | —(4) | (2.12) | (2.12) | $11.69 | 1.98% | 1.08%(5) | (0.02)%(5) | 69% | $434,527 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | $12.32 | 0.01 | 2.33 | 2.34 | (0.01) | (1.11) | (1.12) | $13.54 | 21.82% | 1.07% | 0.07% | 68% | $450,413 | ||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.67 | 0.04 | 0.11 | 0.15 | (0.03) | (1.47) | (1.50) | $12.32 | 1.27% | 1.07% | 0.29% | 42% | $408,562 | ||||||||||||||||||||||||||||||||||||||||||||||
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 | —(4) | 0.12 | 0.12 | — | (1.05) | (1.05) | $12.01 | 1.37% | 1.08% | 0.04% | 50% | $443,915 | ||||||||||||||||||||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $13.84 | 0.01 | 0.28 | 0.29 | (0.03) | (2.12) | (2.15) | $11.98 | 2.08% | 0.88%(5) | 0.18%(5) | 69% | $39,075 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | $12.57 | 0.03 | 2.39 | 2.42 | (0.04) | (1.11) | (1.15) | $13.84 | 22.04% | 0.87% | 0.27% | 68% | $28,238 | ||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.91 | 0.06 | 0.12 | 0.18 | (0.05) | (1.47) | (1.52) | $12.57 | 1.52% | 0.87% | 0.49% | 42% | $16,210 | ||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||
Y Class | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $13.93 | 0.02 | 0.29 | 0.31 | (0.05) | (2.12) | (2.17) | $12.07 | 2.24% | 0.73%(5) | 0.33%(5) | 69% | $201 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | $12.65 | 0.01 | 2.43 | 2.44 | (0.05) | (1.11) | (1.16) | $13.93 | 22.18% | 0.72% | 0.42% | 68% | $299 | ||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.98 | 0.08 | 0.12 | 0.20 | (0.06) | (1.47) | (1.53) | $12.65 | 1.62% | 0.72% | 0.64% | 42% | $7 | ||||||||||||||||||||||||||||||||||||||||||||||
2017(6) | $11.95 | 0.04 | 1.99 | 2.03 | — | — | — | $13.98 | 16.99% | 0.73%(5) | 0.49%(5) | 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $13.08 | (0.02) | 0.28 | 0.26 | — | (2.12) | (2.12) | $11.22 | 1.95% | 1.33%(5) | (0.27)%(5) | 69% | $25,758 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.96 | (0.02) | 2.25 | 2.23 | — | (1.11) | (1.11) | $13.08 | 21.48% | 1.32% | (0.18)% | 68% | $26,932 | ||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.31 | —(4) | 0.12 | 0.12 | — | (1.47) | (1.47) | $11.96 | 1.08% | 1.32% | 0.04% | 42% | $26,256 | ||||||||||||||||||||||||||||||||||||||||||||||
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 | —(4) | (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 | ||||||||||||||||||||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $11.00 | (0.05) | 0.23 | 0.18 | — | (2.12) | (2.12) | $9.06 | 1.52% | 2.08%(5) | (1.02)%(5) | 69% | $4,495 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | $10.32 | (0.09) | 1.88 | 1.79 | — | (1.11) | (1.11) | $11.00 | 20.53% | 2.07% | (0.93)% | 68% | $4,960 | ||||||||||||||||||||||||||||||||||||||||||||||
2018 | $11.77 | (0.08) | 0.10 | 0.02 | — | (1.47) | (1.47) | $10.32 | 0.27% | 2.07% | (0.71)% | 42% | $4,662 | ||||||||||||||||||||||||||||||||||||||||||||||
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 | —(4) | — | (1.05) | (1.05) | $10.63 | 0.40% | 2.08% | (0.96)% | 50% | $8,520 | ||||||||||||||||||||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.80 | (0.03) | 0.27 | 0.24 | — | (2.12) | (2.12) | $10.92 | 1.82% | 1.58%(5) | (0.52)%(5) | 69% | $7,226 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.75 | (0.05) | 2.21 | 2.16 | — | (1.11) | (1.11) | $12.80 | 21.24% | 1.57% | (0.43)% | 68% | $7,448 | ||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.14 | (0.03) | 0.11 | 0.08 | — | (1.47) | (1.47) | $11.75 | 0.75% | 1.57% | (0.21)% | 42% | $6,995 | ||||||||||||||||||||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $13.84 | 0.01 | 0.28 | 0.29 | (0.03) | (2.12) | (2.15) | $11.98 | 2.08% | 0.88%(5) | 0.18%(5) | 69% | $7 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | $12.57 | 0.03 | 2.39 | 2.42 | (0.04) | (1.11) | (1.15) | $13.84 | 22.04% | 0.87% | 0.27% | 68% | $7 | ||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.90 | 0.06 | 0.12 | 0.18 | (0.04) | (1.47) | (1.51) | $12.57 | 1.52% | 0.87% | 0.49% | 42% | $6 | ||||||||||||||||||||||||||||||||||||||||||||||
2017(6) | $11.90 | 0.03 | 1.97 | 2.00 | — | — | — | $13.90 | 16.81% | 0.88%(5) | 0.34%(5) | 54%(7) | $6 | ||||||||||||||||||||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $13.92 | 0.02 | 0.28 | 0.30 | (0.05) | (2.12) | (2.17) | $12.05 | 2.17% | 0.73%(5) | 0.33%(5) | 69% | $69,755 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | $12.63 | 0.05 | 2.40 | 2.45 | (0.05) | (1.11) | (1.16) | $13.92 | 22.30% | 0.72% | 0.42% | 68% | $65,850 | ||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.98 | 0.09 | 0.10 | 0.19 | (0.07) | (1.47) | (1.54) | $12.63 | 1.58% | 0.72% | 0.64% | 42% | $48,147 | ||||||||||||||||||||||||||||||||||||||||||||||
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 |
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, 2020 (unaudited).
(4)Per-share amount was less than $0.005.
(5)Annualized.
(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.
See Notes to Financial Statements.
Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2018 through December 31, 2019. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
22
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 American Century Investments’ website at americancentury.com/proxy 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 americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange
Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on
Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its
fiscal year available on its website at americancentury.com and, upon request, by calling
1-800-345-2021.
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. | |||||||||||
©2020 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92631 2007 |
![image291.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image291.jpg)
Semiannual Report | |||||
May 31, 2020 | |||||
Focused International Growth Fund | |||||
Investor Class (AFCNX) | |||||
I Class (AFCSX) | |||||
A Class (AFCLX) | |||||
C Class (AFCHX) | |||||
R Class (AFCWX) | |||||
R6 Class (AFCMX) | |||||
G Class (AFCGX) |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.
You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Table of Contents |
President’s Letter | |||||
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Liquidity Risk Management Program | |||||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514a141.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/jthomasrev0514a141.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2020. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Pandemic Led to Severe Economic, Market Disruptions
Early in the reporting period, market sentiment was generally upbeat. Dovish central banks, modest inflation, improving economic and corporate earnings data, and U.S.-China trade-policy progress helped boost global growth outlooks. Against this backdrop, key U.S. stock benchmarks rose to new highs in mid-February, and risk assets largely remained in favor throughout the world.
However, beginning in late February, unprecedented social, health care and economic turmoil quickly quashed the optimistic tone. The COVID-19 outbreak rapidly spread throughout the world, halting most economic activity and triggering worldwide recession fears. Adding to the turmoil, global oil prices collapsed amid plunging demand and a price war between Saudi Arabia and Russia. Global stocks and other riskier assets sold off sharply as investors fled to safe-haven investments.
Central banks and federal governments stepped in quickly and aggressively to stabilize global markets and provide financial relief. These extraordinary efforts proved helpful, as markets broadly rebounded in April and May despite discouraging economic and corporate earnings data. In addition, declining coronavirus infection rates and the reopening of many economies helped fuel the recovery. But the rebound wasn’t enough to offset the effects of the earlier sell-off, and global stocks retreated for the six-month period. U.S. stocks fared better than non-U.S. stocks. Among non-U.S. stocks, developed markets generally declined at a greater pace than emerging markets.
As COVID-19 infections are slowing, most economies across the world are reopening. Nevertheless, the return to pre-pandemic economic and market levels will take time and patience. In the meantime, investors likely will face periods of economic and political uncertainty and heightened market volatility. While these influences can be unsettling, they tend to be temporary.
We appreciate your confidence in us during these extraordinary times. We have a long history of helping clients weather unpredictable markets, and we’re confident we will meet today's challenges.
Sincerely,
![image231.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image231.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2020 | |||||
Top Ten Holdings | % of net assets | ||||
Cellnex Telecom SA | 3.7% | ||||
Schneider Electric SE | 3.5% | ||||
Adyen NV | 3.2% | ||||
Alibaba Group Holding Ltd., ADR | 3.2% | ||||
Recruit Holdings Co. Ltd. | 3.2% | ||||
Tencent Holdings Ltd. | 3.1% | ||||
London Stock Exchange Group plc | 3.1% | ||||
Lonza Group AG | 3.0% | ||||
AstraZeneca plc | 2.9% | ||||
Keyence Corp. | 2.9% | ||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 97.6% | ||||
Temporary Cash Investments | 1.8% | ||||
Other Assets and Liabilities | 0.6% | ||||
Investments by Country | % of net assets | ||||
France | 16.0% | ||||
Japan | 14.0% | ||||
China | 9.5% | ||||
Switzerland | 8.1% | ||||
United Kingdom | 8.1% | ||||
Spain | 6.1% | ||||
Germany | 6.0% | ||||
Netherlands | 4.9% | ||||
Denmark | 4.6% | ||||
Sweden | 4.5% | ||||
Hong Kong | 3.8% | ||||
Taiwan | 2.6% | ||||
Finland | 2.6% | ||||
Brazil | 2.6% | ||||
Australia | 2.4% | ||||
Other Countries | 1.8% | ||||
Cash and Equivalents* | 2.4% |
*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, 2019 to May 31, 2020.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
4
Beginning Account Value 12/1/19 | Ending Account Value 5/31/20 | Expenses Paid
During Period(1)
12/1/19 - 5/31/20 |
Annualized
Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $984.30 | $6.10 | 1.23% | ||||||||||
I Class | $1,000 | $985.10 | $5.11 | 1.03% | ||||||||||
A Class | $1,000 | $982.80 | $7.34 | 1.48% | ||||||||||
C Class | $1,000 | $978.80 | $11.03 | 2.23% | ||||||||||
R Class | $1,000 | $982.00 | $8.57 | 1.73% | ||||||||||
R6 Class | $1,000 | $986.50 | $4.37 | 0.88% | ||||||||||
G Class | $1,000 | $990.10 | $0.00 | 0.00%(2) | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,018.85 | $6.21 | 1.23% | ||||||||||
I Class | $1,000 | $1,019.85 | $5.20 | 1.03% | ||||||||||
A Class | $1,000 | $1,017.60 | $7.47 | 1.48% | ||||||||||
C Class | $1,000 | $1,013.85 | $11.23 | 2.23% | ||||||||||
R Class | $1,000 | $1,016.35 | $8.72 | 1.73% | ||||||||||
R6 Class | $1,000 | $1,020.60 | $4.45 | 0.88% | ||||||||||
G Class | $1,000 | $1,025.00 | $0.00 | 0.00%(2) |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 366, 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.
(2)Other expenses, which include directors' fees and expenses, did not exceed 0.005%.
5
Schedule of Investments |
MAY 31, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 97.6% | ||||||||
Australia — 2.4% | ||||||||
CSL Ltd. | 1,920 | $ | 350,266 | |||||
Brazil — 2.6% | ||||||||
Magazine Luiza SA | 30,791 | 373,326 | ||||||
China — 9.5% | ||||||||
Alibaba Group Holding Ltd., ADR(1) | 2,200 | 456,258 | ||||||
ANTA Sports Products Ltd. | 28,000 | 251,323 | ||||||
GDS Holdings Ltd., ADR(1) | 3,800 | 216,600 | ||||||
Tencent Holdings Ltd. | 8,300 | 442,402 | ||||||
1,366,583 | ||||||||
Denmark — 4.6% | ||||||||
DSV Panalpina A/S | 2,710 | 287,431 | ||||||
Novo Nordisk A/S, B Shares | 5,730 | 373,578 | ||||||
661,009 | ||||||||
Finland — 2.6% | ||||||||
Neste Oyj | 9,260 | 375,169 | ||||||
France — 16.0% | ||||||||
Air Liquide SA | 2,190 | 298,023 | ||||||
Dassault Systemes SE | 1,740 | 295,380 | ||||||
Edenred | 5,500 | 230,324 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 830 | 347,571 | ||||||
Schneider Electric SE | 5,000 | 498,810 | ||||||
Teleperformance | 1,350 | 320,481 | ||||||
Valeo SA | 13,050 | 322,898 | ||||||
2,313,487 | ||||||||
Germany — 6.0% | ||||||||
Infineon Technologies AG | 15,345 | 319,814 | ||||||
Puma SE(1) | 4,000 | 284,022 | ||||||
Symrise AG | 2,480 | 270,643 | ||||||
874,479 | ||||||||
Hong Kong — 3.8% | ||||||||
AIA Group Ltd. | 30,400 | 247,844 | ||||||
Techtronic Industries Co. Ltd. | 34,000 | 295,907 | ||||||
543,751 | ||||||||
India — 1.8% | ||||||||
HDFC Bank Ltd., ADR | 6,300 | 263,529 | ||||||
Japan — 14.0% | ||||||||
Hoya Corp. | 2,800 | 262,815 | ||||||
Keyence Corp. | 1,000 | 411,828 | ||||||
MonotaRO Co. Ltd. | 7,600 | 276,289 | ||||||
Murata Manufacturing Co. Ltd. | 6,800 | 380,082 | ||||||
Pan Pacific International Holdings Corp. | 11,300 | 227,797 | ||||||
Recruit Holdings Co. Ltd. | 13,200 | 455,428 | ||||||
2,014,239 | ||||||||
Netherlands — 4.9% | ||||||||
Adyen NV(1) | 349 | 459,148 |
6
Shares | Value | |||||||
Koninklijke DSM NV | 1,930 | $ | 247,703 | |||||
706,851 | ||||||||
Spain — 6.1% | ||||||||
Cellnex Telecom SA | 9,304 | 528,223 | ||||||
Iberdrola SA | 32,300 | 348,617 | ||||||
876,840 | ||||||||
Sweden — 4.5% | ||||||||
Hexagon AB, B Shares(1) | 5,780 | 319,028 | ||||||
Telefonaktiebolaget LM Ericsson, B Shares | 36,500 | 333,181 | ||||||
652,209 | ||||||||
Switzerland — 8.1% | ||||||||
Lonza Group AG | 880 | 433,320 | ||||||
Partners Group Holding AG | 400 | 332,382 | ||||||
Temenos AG | 2,610 | 400,506 | ||||||
1,166,208 | ||||||||
Taiwan — 2.6% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 39,000 | 379,829 | ||||||
United Kingdom — 8.1% | ||||||||
ASOS plc(1) | 8,140 | 302,043 | ||||||
AstraZeneca plc | 3,960 | 421,044 | ||||||
London Stock Exchange Group plc | 4,430 | 441,066 | ||||||
1,164,153 | ||||||||
TOTAL COMMON STOCKS
(Cost $11,053,699) | 14,081,928 | |||||||
TEMPORARY CASH INVESTMENTS — 1.8% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.25%, 5/15/25 - 2/15/27, valued at $265,290), in a joint trading account at 0.01%, dated 5/29/20, due 6/1/20 (Delivery value $259,917) | 259,917 | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 599 | 599 | ||||||
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $260,516) | 260,516 | |||||||
TOTAL INVESTMENT SECURITIES — 99.4%
(Cost $11,314,215) | 14,342,444 | |||||||
OTHER ASSETS AND LIABILITIES — 0.6% | 84,484 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 14,426,928 |
MARKET SECTOR DIVERSIFICATION | ||||||||
(as a % of net assets) | ||||||||
Information Technology | 25.9 | % | ||||||
Consumer Discretionary | 17.7 | % | ||||||
Industrials | 14.9 | % | ||||||
Health Care | 12.7 | % | ||||||
Financials | 8.9 | % | ||||||
Communication Services | 6.8 | % | ||||||
Materials | 5.7 | % | ||||||
Energy | 2.6 | % | ||||||
Utilities | 2.4 | % | ||||||
Cash and Equivalents* | 2.4 | % |
*Includes temporary cash investments and other assets and liabilities.
7
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, 2020 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $11,314,215) | $ | 14,342,444 | |||
Foreign currency holdings, at value (cost of $1,320) | 1,319 | ||||
Receivable for investments sold | 130,807 | ||||
Receivable for capital shares sold | 18,345 | ||||
Dividends and interest receivable | 35,981 | ||||
14,528,896 | |||||
Liabilities | |||||
Payable for investments purchased | 90,034 | ||||
Accrued management fees | 10,904 | ||||
Distribution and service fees payable | 1,030 | ||||
101,968 | |||||
Net Assets | $ | 14,426,928 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 12,453,180 | |||
Distributable earnings | 1,973,748 | ||||
$ | 14,426,928 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $6,704,706 | 490,832 | $13.66 | ||||||||
I Class, $0.01 Par Value | $2,525,927 | 184,098 | $13.72 | ||||||||
A Class, $0.01 Par Value | $807,660 | 59,457 | $13.58* | ||||||||
C Class, $0.01 Par Value | $777,682 | 58,618 | $13.27 | ||||||||
R Class, $0.01 Par Value | $614,934 | 45,522 | $13.51 | ||||||||
R6 Class, $0.01 Par Value | $179,755 | 13,057 | $13.77 | ||||||||
G Class, $0.01 Par Value | $2,816,264 | 202,379 | $13.92 |
*Maximum offering price $14.41 (net asset value divided by 0.9425).
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $15,141) | $ | 115,553 | |||
Interest | 1,763 | ||||
Securities lending, net | 683 | ||||
117,999 | |||||
Expenses: | |||||
Management fees | 78,132 | ||||
Distribution and service fees: | |||||
A Class | 991 | ||||
C Class | 3,803 | ||||
R Class | 1,324 | ||||
Directors' fees and expenses | 217 | ||||
Other expenses | 29 | ||||
84,496 | |||||
Fees waived - G Class | (8,766) | ||||
75,730 | |||||
Net investment income (loss) | 42,269 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | (1,053,414) | ||||
Foreign currency translation transactions | (2,568) | ||||
(1,055,982) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 747,883 | ||||
Translation of assets and liabilities in foreign currencies | 1,146 | ||||
749,029 | |||||
Net realized and unrealized gain (loss) | (306,953) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (264,684) |
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2019 | ||||||||||||||
Increase (Decrease) in Net Assets | May 31, 2020 | November 30, 2019 | ||||||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 42,269 | $ | 5,355 | ||||||||||
Net realized gain (loss) | (1,055,982) | 603,228 | ||||||||||||
Change in net unrealized appreciation (depreciation) | 749,029 | 1,322,654 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | (264,684) | 1,931,237 | ||||||||||||
Distributions to Shareholders | ||||||||||||||
From earnings: | ||||||||||||||
Investor Class | (231,555) | (31,989) | ||||||||||||
I Class | (86,412) | (5,626) | ||||||||||||
A Class | (26,816) | (3,404) | ||||||||||||
C Class | (26,219) | — | ||||||||||||
R Class | (16,491) | (167) | ||||||||||||
R6 Class | (5,882) | (2,051) | ||||||||||||
G Class | (46,910) | — | ||||||||||||
Decrease in net assets from distributions | (440,285) | (43,237) | ||||||||||||
Capital Share Transactions | ||||||||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 2,428,725 | 823,591 | ||||||||||||
Net increase (decrease) in net assets | 1,723,756 | 2,711,591 | ||||||||||||
Net Assets | ||||||||||||||
Beginning of period | 12,703,172 | 9,991,581 | ||||||||||||
End of period | $ | 14,426,928 | $ | 12,703,172 | ||||||||||
See Notes to Financial Statements.
11
Notes to Financial Statements |
MAY 31, 2020 (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, R6 Class and G 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 G Class commenced on April 1, 2019.
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.
12
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. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
13
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income 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.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
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 27% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The 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 | I Class | A Class | C Class | R Class | R6 Class | G Class | ||||||||||||||
1.23% | 1.03% | 1.23% | 1.23% | 1.23% | 0.88% | 0.00%(1) |
(1) Annual management fee before waiver was 0.88%.
14
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, 2020 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2020 were $6,620,890 and $4,421,538, respectively.
15
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2020 | Year ended November 30, 2019(1) | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Investor Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||||||||||||
Sold | 198,946 | $ | 2,794,727 | 181,700 | $ | 2,441,852 | ||||||||||||||
Issued in reinvestment of distributions | 16,376 | 229,083 | 2,828 | 31,989 | ||||||||||||||||
Redeemed | (190,087) | (2,586,180) | (237,365) | (3,054,194) | ||||||||||||||||
25,235 | 437,630 | (52,837) | (580,353) | |||||||||||||||||
I Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 31,949 | 429,704 | 145,088 | 2,001,579 | ||||||||||||||||
Issued in reinvestment of distributions | 6,159 | 86,412 | 497 | 5,626 | ||||||||||||||||
Redeemed | (35,033) | (433,417) | (29,472) | (392,509) | ||||||||||||||||
3,075 | 82,699 | 116,113 | 1,614,696 | |||||||||||||||||
A Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Issued in reinvestment of distributions | 1,925 | 26,816 | 301 | 3,404 | ||||||||||||||||
Redeemed | — | — | (45,299) | (601,599) | ||||||||||||||||
1,925 | 26,816 | (44,998) | (598,195) | |||||||||||||||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 520 | 6,210 | 970 | 13,149 | ||||||||||||||||
Issued in reinvestment of distributions | 1,921 | 26,219 | — | — | ||||||||||||||||
Redeemed | (15) | (217) | (44,793) | (585,022) | ||||||||||||||||
2,426 | 32,212 | (43,823) | (571,873) | |||||||||||||||||
R Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||||||||
Sold | 15,693 | 206,851 | 9,081 | 117,317 | ||||||||||||||||
Issued in reinvestment of distributions | 1,193 | 16,491 | 15 | 167 | ||||||||||||||||
Redeemed | (4,274) | (54,929) | (10,549) | (137,759) | ||||||||||||||||
12,612 | 168,413 | (1,453) | (20,275) | |||||||||||||||||
R6 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||||||||
Sold | 29 | 371 | 1,611 | 19,127 | ||||||||||||||||
Issued in reinvestment of distributions | 418 | 5,882 | 181 | 2,051 | ||||||||||||||||
Redeemed | (8) | (111) | (9,399) | (125,437) | ||||||||||||||||
439 | 6,142 | (7,607) | (104,259) | |||||||||||||||||
G Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||||||||
Sold | 132,557 | 1,824,184 | 84,787 | 1,148,841 | ||||||||||||||||
Issued in reinvestment of distributions | 3,350 | 46,910 | — | — | ||||||||||||||||
Redeemed | (13,660) | (196,281) | (4,655) | (64,991) | ||||||||||||||||
122,247 | 1,674,813 | 80,132 | 1,083,850 | |||||||||||||||||
Net increase (decrease) | 167,959 | $ | 2,428,725 | 45,527 | $ | 823,591 |
(1)April 1, 2019 (commencement of sale) through November 30, 2019 for the G Class.
16
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
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 | $ | 672,858 | $ | 693,725 | — | ||||||
India | 263,529 | — | — | ||||||||
Other Countries | — | 12,451,816 | — | ||||||||
Temporary Cash Investments | 599 | 259,917 | — | ||||||||
$ | 936,986 | $ | 13,405,458 | — |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
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.
17
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 11,329,457 | |||
Gross tax appreciation of investments | $ | 3,068,282 | |||
Gross tax depreciation of investments | (55,295) | ||||
Net tax appreciation (depreciation) of investments | $ | 3,012,987 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
18
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net
Investment Income
(Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investor Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $14.34 | 0.03 | (0.25) | (0.22) | — | (0.46) | (0.46) | $13.66 | (1.57)% | 1.23%(4) | 0.49%(4) | 33% | $6,705 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.92 | 0.02 | 2.46 | 2.48 | (0.06) | — | (0.06) | $14.34 | 20.96% | 1.24% | 0.13% | 96% | $6,677 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $12.81 | 0.08 | (0.97) | (0.89) | — | — | — | $11.92 | (6.95)% | 1.23% | 0.59% | 82% | $6,180 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $9.75 | 0.01 | 3.13 | 3.14 | (0.08) | — | (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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $14.39 | 0.04 | (0.25) | (0.21) | — | (0.46) | (0.46) | $13.72 | (1.49)% | 1.03%(4) | 0.69%(4) | 33% | $2,526 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.96 | 0.02 | 2.49 | 2.51 | (0.08) | — | (0.08) | $14.39 | 21.21% | 1.04% | 0.33% | 96% | $2,605 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $12.83 | 0.09 | (0.96) | (0.87) | — | — | — | $11.96 | (6.78)% | 1.03% | 0.79% | 82% | $776 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $9.76 | 0.05 | 3.11 | 3.16 | (0.09) | — | (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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $14.28 | 0.01 | (0.25) | (0.24) | — | (0.46) | (0.46) | $13.58 | (1.72)% | 1.48%(4) | 0.24%(4) | 33% | $808 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.87 | —(6) | 2.44 | 2.44 | (0.03) | — | (0.03) | $14.28 | 20.66% | 1.49% | (0.12)% | 96% | $822 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $12.79 | 0.03 | (0.95) | (0.92) | — | — | — | $11.87 | (7.19)% | 1.48% | 0.34% | 82% | $1,217 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $9.73 | (0.01) | 3.12 | 3.11 | (0.05) | — | (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 |
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) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
C Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $14.01 | (0.04) | (0.24) | (0.28) | — | (0.46) | (0.46) | $13.27 | (2.12)% | 2.23%(4) | (0.51)%(4) | 33% | $778 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.70 | (0.09) | 2.40 | 2.31 | — | — | — | $14.01 | 19.85% | 2.24% | (0.87)% | 96% | $787 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $12.70 | (0.07) | (0.93) | (1.00) | — | — | — | $11.70 | (7.95)% | 2.23% | (0.41)% | 82% | $1,170 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
R Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $14.22 | —(6) | (0.25) | (0.25) | — | (0.46) | (0.46) | $13.51 | (1.80)% | 1.73%(4) | (0.01)%(4) | 33% | $615 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.82 | (0.04) | 2.44 | 2.40 | —(6) | — | —(6) | $14.22 | 20.36% | 1.74% | (0.37)% | 96% | $468 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $12.77 | —(6) | (0.95) | (0.95) | — | — | — | $11.82 | (7.44)% | 1.73% | 0.09% | 82% | $406 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $9.72 | (0.04) | 3.12 | 3.08 | (0.03) | — | (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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $14.42 | 0.06 | (0.25) | (0.19) | — | (0.46) | (0.46) | $13.77 | (1.35)% | 0.88%(4) | 0.84%(4) | 33% | $180 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.99 | 0.08 | 2.45 | 2.53 | (0.10) | — | (0.10) | $14.42 | 21.34% | 0.89% | 0.48% | 96% | $182 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $12.84 | 0.11 | (0.96) | (0.85) | — | — | — | $11.99 | (6.62)% | 0.88% | 0.94% | 82% | $242 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $9.77 | 0.06 | 3.12 | 3.18 | (0.11) | — | (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 |
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) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
G Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $14.51 | 0.13 | (0.26) | (0.13) | — | (0.46) | (0.46) | $13.92 | (0.99)% | 0.00%(4)(7) | 1.72%(4)(7) | 33% | $2,816 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019(8) | $12.94 | 0.12 | 1.45 | 1.57 | — | — | — | $14.51 | 12.13% | 0.01%(4)(9) | 1.29%(4)(9) | 96%(10) | $1,163 |
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, 2020 (unaudited).
(4)Annualized.
(5)March 29, 2016 (fund inception) through November 30, 2016.
(6)Per-share amount was less than $0.005.
(7)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 0.88% and 0.84%, respectively.
(8)April 1, 2019 (commencement of sale) through November 30, 2019.
(9)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 0.89% and 0.41%, respectively.
(10)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2019.
See Notes to Financial Statements.
Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2018 through December 31, 2019. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
22
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 American Century Investments’ website at americancentury.com/proxy 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 americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange
Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on
Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its
fiscal year available on its website at americancentury.com and, upon request, by calling
1-800-345-2021.
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. | |||||||||||
©2020 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92637 2007 |
![image291.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image291.jpg)
Semiannual Report | |||||
May 31, 2020 | |||||
Global Small Cap Fund | |||||
Investor Class (AGCVX) | |||||
I Class (AGCSX) | |||||
A Class (AGCLX) | |||||
C Class (AGCHX) | |||||
R Class (AGCWX) | |||||
R6 Class (AGCTX) |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.
You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Table of Contents |
President’s Letter | |||||
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Liquidity Risk Management Program | |||||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514a141.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/jthomasrev0514a141.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2020. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Pandemic Led to Severe Economic, Market Disruptions
Early in the reporting period, market sentiment was generally upbeat. Dovish central banks, modest inflation, improving economic and corporate earnings data, and U.S.-China trade-policy progress helped boost global growth outlooks. Against this backdrop, key U.S. stock benchmarks rose to new highs in mid-February, and risk assets largely remained in favor throughout the world.
However, beginning in late February, unprecedented social, health care and economic turmoil quickly quashed the optimistic tone. The COVID-19 outbreak rapidly spread throughout the world, halting most economic activity and triggering worldwide recession fears. Adding to the turmoil, global oil prices collapsed amid plunging demand and a price war between Saudi Arabia and Russia. Global stocks and other riskier assets sold off sharply as investors fled to safe-haven investments.
Central banks and federal governments stepped in quickly and aggressively to stabilize global markets and provide financial relief. These extraordinary efforts proved helpful, as markets broadly rebounded in April and May despite discouraging economic and corporate earnings data. In addition, declining coronavirus infection rates and the reopening of many economies helped fuel the recovery. But the rebound wasn’t enough to offset the effects of the earlier sell-off, and global stocks retreated for the six-month period. U.S. stocks fared better than non-U.S. stocks. Among non-U.S. stocks, developed markets generally declined at a greater pace than emerging markets.
As COVID-19 infections are slowing, most economies across the world are reopening. Nevertheless, the return to pre-pandemic economic and market levels will take time and patience. In the meantime, investors likely will face periods of economic and political uncertainty and heightened market volatility. While these influences can be unsettling, they tend to be temporary.
We appreciate your confidence in us during these extraordinary times. We have a long history of helping clients weather unpredictable markets, and we’re confident we will meet today's challenges.
Sincerely,
![image231.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image231.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2020 | ||||||||
Top Ten Holdings | % of net assets | |||||||
Saracen Mineral Holdings Ltd. | 1.5% | |||||||
A-Living Services Co. Ltd., H Shares | 1.4% | |||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 1.4% | |||||||
Natera, Inc. | 1.4% | |||||||
TopBuild Corp. | 1.4% | |||||||
Brunswick Corp. | 1.3% | |||||||
Callaway Golf Co. | 1.2% | |||||||
Kinsale Capital Group, Inc. | 1.2% | |||||||
boohoo Group plc | 1.2% | |||||||
Nabtesco Corp. | 1.2% | |||||||
Types of Investments in Portfolio | % of net assets | |||||||
Domestic Common Stocks | 54.6% | |||||||
Foreign Common Stocks | 51.3% | |||||||
Exchange-Traded Funds | —* | |||||||
Total Equity Exposure | 105.9% | |||||||
Temporary Cash Investments | 0.9% | |||||||
Other Assets and Liabilities | (6.8)%** | |||||||
*Category is less than 0.05% of total net assets. | ||||||||
**Amount relates primarily to payable for capital shares redeemed, but not settled, at period end. | ||||||||
Investments by Country | % of net assets | |||||||
United States | 54.6% | |||||||
Sweden | 7.2% | |||||||
Canada | 6.6% | |||||||
Japan | 6.2% | |||||||
Australia | 5.5% | |||||||
United Kingdom | 4.8% | |||||||
China | 4.0% | |||||||
Germany | 2.6% | |||||||
Other Countries | 14.4% | |||||||
Exchange-Traded Funds | —* | |||||||
Cash and Equivalents** | (5.9)% |
*Category is less than 0.05% of total net assets.
**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, 2019 to May 31, 2020.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
4
Beginning Account Value 12/1/19 | Ending Account Value 5/31/20 | Expenses Paid During Period(1) 12/1/19 - 5/31/20 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,053.30 | $7.80 | 1.52% | ||||||||||
I Class | $1,000 | $1,054.80 | $6.78 | 1.32% | ||||||||||
A Class | $1,000 | $1,052.40 | $9.08 | 1.77% | ||||||||||
C Class | $1,000 | $1,047.80 | $12.90 | 2.52% | ||||||||||
R Class | $1,000 | $1,050.30 | $10.35 | 2.02% | ||||||||||
R6 Class | $1,000 | $1,055.10 | $6.01 | 1.17% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,017.40 | $7.67 | 1.52% | ||||||||||
I Class | $1,000 | $1,018.40 | $6.66 | 1.32% | ||||||||||
A Class | $1,000 | $1,016.15 | $8.92 | 1.77% | ||||||||||
C Class | $1,000 | $1,012.40 | $12.68 | 2.52% | ||||||||||
R Class | $1,000 | $1,014.90 | $10.18 | 2.02% | ||||||||||
R6 Class | $1,000 | $1,019.15 | $5.91 | 1.17% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 366, 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, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 105.9% | ||||||||
Australia — 5.5% | ||||||||
Afterpay Ltd.(1) | 9,173 | $ | 291,533 | |||||
Breville Group Ltd. | 17,204 | 253,125 | ||||||
Megaport Ltd.(1) | 23,244 | 210,287 | ||||||
NEXTDC Ltd.(1) | 31,255 | 190,891 | ||||||
NRW Holdings Ltd. | 211,557 | 269,363 | ||||||
Saracen Mineral Holdings Ltd.(1) | 169,995 | 573,379 | ||||||
Seven Group Holdings Ltd. | 32,064 | 342,309 | ||||||
2,130,887 | ||||||||
Belgium — 0.9% | ||||||||
Argenx SE(1) | 1,586 | 338,942 | ||||||
Brazil — 1.0% | ||||||||
Arco Platform Ltd., Class A(1) | 3,787 | 183,594 | ||||||
TOTVS SA | 51,700 | 194,930 | ||||||
378,524 | ||||||||
Canada — 6.6% | ||||||||
Altus Group Ltd. | 1,339 | 41,906 | ||||||
Boyd Group Services, Inc. | 1,815 | 277,843 | ||||||
ECN Capital Corp. | 81,425 | 280,317 | ||||||
FirstService Corp. | 2,441 | 226,912 | ||||||
Innergex Renewable Energy, Inc. | 17,309 | 238,103 | ||||||
Jamieson Wellness, Inc. | 8,409 | 202,827 | ||||||
Kinaxis, Inc.(1) | 1,266 | 163,467 | ||||||
Parex Resources, Inc.(1) | 29,338 | 329,849 | ||||||
Real Matters, Inc.(1) | 25,502 | 439,897 | ||||||
TFI International, Inc. | 11,825 | 358,138 | ||||||
2,559,259 | ||||||||
China — 4.0% | ||||||||
A-Living Services Co. Ltd., H Shares | 103,500 | 557,509 | ||||||
China Yongda Automobiles Services Holdings Ltd. | 427,000 | 445,981 | ||||||
GDS Holdings Ltd., ADR(1) | 2,224 | 126,768 | ||||||
Kingsoft Cloud Holdings Ltd., ADR(1) | 5,502 | 110,810 | ||||||
Times China Holdings Ltd. | 220,000 | 324,379 | ||||||
1,565,447 | ||||||||
Finland — 1.8% | ||||||||
Huhtamaki Oyj(1) | 11,060 | 447,855 | ||||||
Valmet Oyj(1) | 9,498 | 247,627 | ||||||
695,482 | ||||||||
France — 1.5% | ||||||||
Korian SA | 10,639 | 383,664 | ||||||
SOITEC(1) | 1,910 | 186,298 | ||||||
569,962 | ||||||||
Germany — 2.6% | ||||||||
Bechtle AG | 1,810 | 316,901 | ||||||
Flatex AG(1) | 8,533 | 295,869 | ||||||
HelloFresh SE(1) | 3,081 | 125,583 |
6
Shares | Value | |||||||
Hypoport SE(1) | 654 | $ | 291,774 | |||||
1,030,127 | ||||||||
India — 0.7% | ||||||||
Indraprastha Gas Ltd. | 43,876 | 273,163 | ||||||
Israel — 1.8% | ||||||||
Kornit Digital Ltd.(1) | 5,530 | 258,527 | ||||||
Nova Measuring Instruments Ltd.(1) | 9,317 | 444,421 | ||||||
702,948 | ||||||||
Italy — 0.6% | ||||||||
Amplifon SpA(1) | 8,557 | 238,352 | ||||||
Japan — 6.2% | ||||||||
Anritsu Corp. | 16,000 | 315,563 | ||||||
Kobe Bussan Co. Ltd. | 6,900 | 357,535 | ||||||
Menicon Co. Ltd. | 4,600 | 234,091 | ||||||
Nabtesco Corp. | 14,500 | 450,803 | ||||||
Nippon Gas Co. Ltd. | 2,700 | 107,000 | ||||||
Nissan Chemical Corp. | 6,700 | 296,117 | ||||||
SHIFT, Inc.(1) | 3,200 | 302,673 | ||||||
Topcon Corp. | 5,100 | 44,809 | ||||||
Zeon Corp. | 30,700 | 295,957 | ||||||
2,404,548 | ||||||||
Netherlands — 1.7% | ||||||||
ASM International NV | 2,569 | 300,354 | ||||||
Basic-Fit NV(1) | 1,604 | 40,876 | ||||||
IMCD NV | 3,481 | 329,320 | ||||||
670,550 | ||||||||
Norway — 0.7% | ||||||||
Bakkafrost P/F(1) | 4,586 | 286,413 | ||||||
South Korea — 0.6% | ||||||||
Douzone Bizon Co. Ltd. | 2,413 | 234,437 | ||||||
Sweden — 7.2% | ||||||||
AAK AB(1) | 16,516 | 301,436 | ||||||
Beijer Ref AB | 9,333 | 277,610 | ||||||
Biotage AB(1) | 22,674 | 349,230 | ||||||
Embracer Group AB(1) | 16,494 | 201,059 | ||||||
Lifco AB, B Shares | 5,167 | 316,891 | ||||||
Lindab International AB | 32,235 | 327,105 | ||||||
MIPS AB | 3,352 | 112,337 | ||||||
Samhallsbyggnadsbolaget i Norden AB | 87,970 | 177,265 | ||||||
Sinch AB(1) | 5,988 | 401,418 | ||||||
Stillfront Group AB(1) | 4,789 | 352,138 | ||||||
2,816,489 | ||||||||
Switzerland — 1.2% | ||||||||
SIG Combibloc Group AG(1) | 17,600 | 295,110 | ||||||
Tecan Group AG | 510 | 178,705 | ||||||
473,815 | ||||||||
Taiwan — 1.9% | ||||||||
Accton Technology Corp. | 41,000 | 330,278 | ||||||
Airtac International Group | 24,000 | 412,478 | ||||||
742,756 |
7
Shares | Value | |||||||
United Kingdom — 4.8% | ||||||||
Avast plc | 60,054 | $ | 374,595 | |||||
boohoo Group plc(1) | 94,614 | 454,569 | ||||||
Electrocomponents plc | 33,465 | 263,744 | ||||||
Games Workshop Group plc | 3,510 | 346,086 | ||||||
Nomad Foods Ltd.(1) | 8,156 | 172,744 | ||||||
Trainline plc(1) | 41,692 | 252,427 | ||||||
1,864,165 | ||||||||
United States — 54.6% | ||||||||
10X Genomics, Inc., Class A(1) | 2,679 | 208,882 | ||||||
1Life Healthcare, Inc.(1) | 5,290 | 170,867 | ||||||
AAR Corp. | 11,623 | 234,436 | ||||||
Applied Industrial Technologies, Inc. | 5,602 | 324,916 | ||||||
Ares Management Corp., Class A | 11,000 | 415,360 | ||||||
Avalara, Inc.(1) | 2,950 | 315,827 | ||||||
Brunswick Corp. | 9,281 | 510,548 | ||||||
CACI International, Inc., Class A(1) | 1,313 | 329,274 | ||||||
Callaway Golf Co. | 30,855 | 472,699 | ||||||
Cannae Holdings, Inc.(1) | 10,897 | 401,336 | ||||||
Chegg, Inc.(1) | 4,768 | 291,229 | ||||||
Chemed Corp. | 595 | 284,713 | ||||||
Churchill Downs, Inc. | 2,522 | 334,594 | ||||||
Clean Harbors, Inc.(1) | 4,392 | 260,841 | ||||||
Coupa Software, Inc.(1) | 1,036 | 235,700 | ||||||
Crocs, Inc.(1) | 15,730 | 450,664 | ||||||
Deckers Outdoor Corp.(1) | 1,701 | 310,484 | ||||||
Diamondback Energy, Inc. | 7,877 | 335,403 | ||||||
eHealth, Inc.(1) | 1,694 | 220,931 | ||||||
Entegris, Inc. | 3,393 | 203,173 | ||||||
Envestnet, Inc.(1) | 4,265 | 309,682 | ||||||
Essent Group Ltd. | 7,046 | 232,870 | ||||||
Etsy, Inc.(1) | 4,256 | 344,651 | ||||||
Everbridge, Inc.(1) | 1,395 | 204,033 | ||||||
Five9, Inc.(1) | 2,208 | 230,074 | ||||||
Freshpet, Inc.(1) | 2,687 | 207,383 | ||||||
Global Medical REIT, Inc. | 25,291 | 271,119 | ||||||
H.B. Fuller Co. | 8,666 | 326,015 | ||||||
Hamilton Lane, Inc., Class A | 5,006 | 366,289 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 19,155 | 555,687 | ||||||
HealthEquity, Inc.(1) | 3,415 | 211,628 | ||||||
Helen of Troy Ltd.(1) | 1,591 | 289,435 | ||||||
IAA, Inc.(1) | 8,947 | 366,827 | ||||||
Inphi Corp.(1) | 3,176 | 399,128 | ||||||
Inspire Medical Systems, Inc.(1) | 2,944 | 240,054 | ||||||
Kinsale Capital Group, Inc. | 3,076 | 459,308 | ||||||
Lattice Semiconductor Corp.(1) | 10,292 | 255,962 | ||||||
Masonite International Corp.(1) | 4,933 | 327,453 | ||||||
Model N, Inc.(1) | 7,500 | 240,900 | ||||||
Monolithic Power Systems, Inc. | 1,410 | 295,747 | ||||||
Natera, Inc.(1) | 12,090 | 530,146 | ||||||
National Vision Holdings, Inc.(1) | 11,271 | 301,837 | ||||||
Navistar International Corp.(1) | 11,842 | 297,708 |
8
Shares | Value | |||||||
NeoGenomics, Inc.(1) | 11,308 | $ | 301,810 | |||||
PAE, Inc.(1) | 22,778 | 214,113 | ||||||
Palomar Holdings, Inc.(1) | 5,984 | 445,329 | ||||||
Parsley Energy, Inc., Class A | 27,522 | 251,551 | ||||||
Pennant Group, Inc. (The)(1) | 9,734 | 248,120 | ||||||
Phreesia, Inc.(1) | 8,141 | 238,694 | ||||||
Planet Fitness, Inc., Class A(1) | 4,612 | 298,074 | ||||||
Progyny, Inc.(1) | 8,558 | 213,608 | ||||||
R1 RCM, Inc.(1) | 33,904 | 359,721 | ||||||
RadNet, Inc.(1) | 23,450 | 399,588 | ||||||
Rapid7, Inc.(1) | 4,813 | 235,308 | ||||||
Repay Holdings Corp.(1) | 13,115 | 302,170 | ||||||
Rexford Industrial Realty, Inc. | 5,059 | 201,348 | ||||||
Reynolds Consumer Products, Inc. | 8,072 | 269,524 | ||||||
RH(1) | 1,926 | 417,730 | ||||||
SeaSpine Holdings Corp.(1) | 17,376 | 185,054 | ||||||
SI-BONE, Inc.(1) | 12,940 | 226,321 | ||||||
Silk Road Medical, Inc.(1) | 5,774 | 220,971 | ||||||
SiteOne Landscape Supply, Inc.(1) | 3,961 | 421,094 | ||||||
Skyline Champion Corp.(1) | 15,415 | 382,909 | ||||||
SYNNEX Corp. | 2,920 | 311,418 | ||||||
Tandem Diabetes Care, Inc.(1) | 4,485 | 372,928 | ||||||
TopBuild Corp.(1) | 4,616 | 529,409 | ||||||
Wingstop, Inc. | 1,894 | 230,973 | ||||||
Wyndham Destinations, Inc. | 6,368 | 202,502 | ||||||
Zynga, Inc., Class A(1) | 25,495 | 233,279 | ||||||
21,289,359 | ||||||||
TOTAL COMMON STOCKS
(Cost $33,332,835) | 41,265,625 | |||||||
EXCHANGE-TRADED FUNDS† | ||||||||
Schwab International Small-Cap Equity ETF | 173 | 5,005 | ||||||
Schwab US Small-Cap ETF | 72 | 4,564 | ||||||
TOTAL EXCHANGE-TRADED FUNDS
(Cost $8,404) | 9,569 | |||||||
TEMPORARY CASH INVESTMENTS — 0.9% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.25%, 5/15/25 - 2/15/27, valued at $290,048), in a joint trading account at 0.01%, dated 5/29/20, due 6/1/20 (Delivery value $284,173) | 284,173 | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 58,659 | 58,659 | ||||||
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $342,832) | 342,832 | |||||||
TOTAL INVESTMENT SECURITIES — 106.8%
(Cost $33,684,071) | 41,618,026 | |||||||
OTHER ASSETS AND LIABILITIES(2) — (6.8)% | (2,654,110) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 38,963,916 |
9
MARKET SECTOR DIVERSIFICATION | ||||||||
(as a % of net assets) | ||||||||
Information Technology | 22.1 | % | ||||||
Consumer Discretionary | 19.7 | % | ||||||
Industrials | 17.5 | % | ||||||
Health Care | 15.8 | % | ||||||
Financials | 10.1 | % | ||||||
Materials | 5.8 | % | ||||||
Consumer Staples | 4.5 | % | ||||||
Real Estate | 4.4 | % | ||||||
Energy | 2.4 | % | ||||||
Communication Services | 2.0 | % | ||||||
Utilities | 1.6 | % | ||||||
Exchange-Traded Funds | —* | |||||||
Cash and Equivalents** | (5.9) | % |
*Category is less than 0.05% of total net assets.
**Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||||||||
ADR | - | American Depositary Receipt |
† Category is less than 0.05% of total net assets.
(1)Non-income producing.
(2)Amount relates primarily to payable for capital shares redeemed, but not settled, at period end.
See Notes to Financial Statements.
10
Statement of Assets and Liabilities |
MAY 31, 2020 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $33,684,071) | $ | 41,618,026 | |||
Foreign currency holdings, at value (cost of $63) | 62 | ||||
Receivable for investments sold | 991,389 | ||||
Receivable for capital shares sold | 8,285 | ||||
Dividends and interest receivable | 35,309 | ||||
Other assets | 1,553 | ||||
42,654,624 | |||||
Liabilities | |||||
Payable for investments purchased | 1,166,461 | ||||
Payable for capital shares redeemed | 2,481,089 | ||||
Accrued management fees | 42,273 | ||||
Distribution and service fees payable | 885 | ||||
3,690,708 | |||||
Net Assets | $ | 38,963,916 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 35,683,958 | |||
Distributable earnings | 3,279,958 | ||||
$ | 38,963,916 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $15,853,613 | 1,000,152 | $15.85 | ||||||||
I Class, $0.01 Par Value | $507,141 | 31,700 | $16.00 | ||||||||
A Class, $0.01 Par Value | $674,997 | 43,058 | $15.68* | ||||||||
C Class, $0.01 Par Value | $634,804 | 41,893 | $15.15 | ||||||||
R Class, $0.01 Par Value | $646,348 | 41,699 | $15.50 | ||||||||
R6 Class, $0.01 Par Value | $20,647,013 | 1,281,992 | $16.11 |
* Maximum offering price $16.64 (net asset value divided by 0.9425).
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) | ||||||||
Investment Income (Loss) | ||||||||
Income: | ||||||||
Dividends (net of foreign taxes withheld of $8,022) | $ | 117,710 | ||||||
Securities lending, net | 2,630 | |||||||
Interest | 1,871 | |||||||
122,211 | ||||||||
Expenses: | ||||||||
Management fees | 189,099 | |||||||
Distribution and service fees: | ||||||||
A Class | 820 | |||||||
C Class | 2,903 | |||||||
R Class | 1,434 | |||||||
Directors' fees and expenses | 406 | |||||||
Other expenses | 2,881 | |||||||
197,543 | ||||||||
Net investment income (loss) | (75,332) | |||||||
Realized and Unrealized Gain (Loss) | ||||||||
Net realized gain (loss) on: | ||||||||
Investment transactions | (4,389,632) | |||||||
Foreign currency translation transactions | (619) | |||||||
(4,390,251) | ||||||||
Change in net unrealized appreciation (depreciation) on: | ||||||||
Investments | 4,879,813 | |||||||
Translation of assets and liabilities in foreign currencies | 1,336 | |||||||
4,881,149 | ||||||||
Net realized and unrealized gain (loss) | 490,898 | |||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 415,566 |
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2019 | ||||||||||||||
Increase (Decrease) in Net Assets | May 31, 2020 | November 30, 2019 | ||||||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | (75,332) | $ | (84,461) | ||||||||||
Net realized gain (loss) | (4,390,251) | 1,372,496 | ||||||||||||
Change in net unrealized appreciation (depreciation) | 4,881,149 | 1,628,442 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 415,566 | 2,916,477 | ||||||||||||
Distributions to Shareholders | ||||||||||||||
From earnings: | ||||||||||||||
Investor Class | (752,595) | (244,814) | ||||||||||||
I Class | (27,255) | (19,145) | ||||||||||||
A Class | (33,528) | (25,394) | ||||||||||||
C Class | (30,545) | (24,698) | ||||||||||||
R Class | (27,101) | (8,586) | ||||||||||||
R6 Class | (10,074) | (6,072) | ||||||||||||
Decrease in net assets from distributions | (881,098) | (328,709) | ||||||||||||
Capital Share Transactions | ||||||||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 21,871,766 | (5,349,893) | ||||||||||||
Net increase (decrease) in net assets | 21,406,234 | (2,762,125) | ||||||||||||
Net Assets | ||||||||||||||
Beginning of period | 17,557,682 | 20,319,807 | ||||||||||||
End of period | $ | 38,963,916 | $ | 17,557,682 | ||||||||||
See Notes to Financial Statements.
13
Notes to Financial Statements |
MAY 31, 2020 (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. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
15
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).
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
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 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 ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class.
The 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% |
16
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, 2020 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
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 other expenses to the annualized ratio of operating expenses to average net assets was 0.02% for the period ended May 31, 2020.
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 $230,766 and $33,622, respectively. The effect of interfund transactions on the Statement of Operations was $20,048 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, 2020 were $55,203,580 and $31,778,875, respectively.
17
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2020 | Year ended November 30, 2019 | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Investor Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||||||||
Sold | 250,543 | $ | 3,713,625 | 362,514 | $ | 5,144,156 | ||||||||||||||
Issued in reinvestment of distributions | 47,962 | 739,577 | 19,659 | 242,195 | ||||||||||||||||
Redeemed | (247,304) | (3,433,933) | (542,922) | (7,621,732) | ||||||||||||||||
51,201 | 1,019,269 | (160,749) | (2,235,381) | |||||||||||||||||
I Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||||||||
Sold | 1,093 | 16,707 | 7,591 | 112,985 | ||||||||||||||||
Issued in reinvestment of distributions | 1,753 | 27,255 | 1,544 | 19,145 | ||||||||||||||||
Redeemed | (6,074) | (95,215) | (77,886) | (1,089,958) | ||||||||||||||||
(3,228) | (51,253) | (68,751) | (957,828) | |||||||||||||||||
A Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 1,776 | 28,464 | 831 | 9,923 | ||||||||||||||||
Issued in reinvestment of distributions | 2,196 | 33,528 | 2,075 | 25,394 | ||||||||||||||||
Redeemed | (3,732) | (47,279) | (68,936) | (1,001,875) | ||||||||||||||||
240 | 14,713 | (66,030) | (966,558) | |||||||||||||||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 708 | 8,625 | 273 | 4,549 | ||||||||||||||||
Issued in reinvestment of distributions | 2,062 | 30,545 | 2,061 | 24,698 | ||||||||||||||||
Redeemed | — | — | (69,074) | (978,912) | ||||||||||||||||
2,770 | 39,170 | (66,740) | (949,665) | |||||||||||||||||
R Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||||||||
Sold | 13,941 | 198,783 | 13,711 | 194,728 | ||||||||||||||||
Issued in reinvestment of distributions | 1,794 | 27,101 | 707 | 8,586 | ||||||||||||||||
Redeemed | (7,770) | (109,951) | (17,244) | (246,353) | ||||||||||||||||
7,965 | 115,933 | (2,826) | (43,039) | |||||||||||||||||
R6 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||||||||
Sold | 2,019,148 | 30,929,731 | 289 | 4,190 | ||||||||||||||||
Issued in reinvestment of distributions | 644 | 10,074 | 488 | 6,072 | ||||||||||||||||
Redeemed | (750,700) | (10,205,871) | (14,013) | (207,684) | ||||||||||||||||
1,269,092 | 20,733,934 | (13,236) | (197,422) | |||||||||||||||||
Net increase (decrease) | 1,328,040 | $ | 21,871,766 | (378,332) | $ | (5,349,893) |
18
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||
Investment Securities | |||||||||||
Common Stocks | |||||||||||
Australia | — | $ | 2,130,887 | — | |||||||
Belgium | — | 338,942 | — | ||||||||
Brazil | $ | 183,594 | 194,930 | — | |||||||
Canada | — | 2,559,259 | — | ||||||||
China | 237,578 | 1,327,869 | — | ||||||||
Finland | — | 695,482 | — | ||||||||
France | — | 569,962 | — | ||||||||
Germany | — | 1,030,127 | — | ||||||||
India | — | 273,163 | — | ||||||||
Italy | — | 238,352 | — | ||||||||
Japan | — | 2,404,548 | — | ||||||||
Netherlands | — | 670,550 | — | ||||||||
Norway | — | 286,413 | — | ||||||||
South Korea | — | 234,437 | — | ||||||||
Sweden | — | 2,816,489 | — | ||||||||
Switzerland | — | 473,815 | — | ||||||||
Taiwan | — | 742,756 | — | ||||||||
United Kingdom | 172,744 | 1,691,421 | — | ||||||||
Other Countries | 21,992,307 | — | — | ||||||||
Exchange-Traded Funds | 9,569 | — | — | ||||||||
Temporary Cash Investments | 58,659 | 284,173 | — | ||||||||
$ | 22,654,451 | $ | 18,963,575 | — |
19
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund 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 | $ | 35,746,711 | |||
Gross tax appreciation of investments | $ | 6,317,125 | |||
Gross tax depreciation of investments | (445,810) | ||||
Net tax appreciation (depreciation) of investments | $ | 5,871,315 |
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, 2019, the fund had late-year ordinary loss deferrals of $(86,255), which represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
20
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $15.81 | (0.06) | 0.88 | 0.82 | (0.78) | $15.85 | 5.33% | 1.52%(4) | (0.64)%(4) | 118% | $15,854 | |||||||||||||||||||||||||||||||||||||||||||||
2019 | $13.66 | (0.06) | 2.44 | 2.38 | (0.23) | $15.81 | 17.93% | 1.51% | (0.39)% | 161% | $15,005 | |||||||||||||||||||||||||||||||||||||||||||||
2018 | $14.80 | (0.13) | (0.24) | (0.37) | (0.77) | $13.66 | (2.73)% | 1.50% | (0.86)% | 147% | $15,159 | |||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $15.94 | (0.04) | 0.88 | 0.84 | (0.78) | $16.00 | 5.48% | 1.32%(4) | (0.44)%(4) | 118% | $507�� | |||||||||||||||||||||||||||||||||||||||||||||
2019 | $13.74 | (0.02) | 2.45 | 2.43 | (0.23) | $15.94 | 18.12% | 1.31% | (0.19)% | 161% | $557 | |||||||||||||||||||||||||||||||||||||||||||||
2018 | $14.85 | (0.10) | (0.24) | (0.34) | (0.77) | $13.74 | (2.50)% | 1.30% | (0.66)% | 147% | $1,424 | |||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $15.66 | (0.07) | 0.87 | 0.80 | (0.78) | $15.68 | 5.24% | 1.77%(4) | (0.89)%(4) | 118% | $675 | |||||||||||||||||||||||||||||||||||||||||||||
2019 | $13.57 | (0.08) | 2.40 | 2.32 | (0.23) | $15.66 | 17.60% | 1.76% | (0.64)% | 161% | $671 | |||||||||||||||||||||||||||||||||||||||||||||
2018 | $14.74 | (0.17) | (0.23) | (0.40) | (0.77) | $13.57 | (2.95)% | 1.75% | (1.11)% | 147% | $1,477 | |||||||||||||||||||||||||||||||||||||||||||||
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 |
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) | ||||||||||||||||||||||||||||||||||||||||||||||
C Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $15.22 | (0.12) | 0.83 | 0.71 | (0.78) | $15.15 | 4.78% | 2.52%(4) | (1.64)%(4) | 118% | $635 | |||||||||||||||||||||||||||||||||||||||||||||
2019 | $13.29 | (0.18) | 2.34 | 2.16 | (0.23) | $15.22 | 16.75% | 2.51% | (1.39)% | 161% | $595 | |||||||||||||||||||||||||||||||||||||||||||||
2018 | $14.56 | (0.28) | (0.22) | (0.50) | (0.77) | $13.29 | (3.71)% | 2.50% | (1.86)% | 147% | $1,407 | |||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||
R Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $15.52 | (0.09) | 0.85 | 0.76 | (0.78) | $15.50 | 5.03% | 2.02%(4) | (1.14)%(4) | 118% | $646 | |||||||||||||||||||||||||||||||||||||||||||||
2019 | $13.48 | (0.12) | 2.39 | 2.27 | (0.23) | $15.52 | 17.34% | 2.01% | (0.89)% | 161% | $523 | |||||||||||||||||||||||||||||||||||||||||||||
2018 | $14.68 | (0.21) | (0.22) | (0.43) | (0.77) | $13.48 | (3.18)% | 2.00% | (1.36)% | 147% | $493 | |||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $16.03 | (0.01) | 0.87 | 0.86 | (0.78) | $16.11 | 5.51% | 1.17%(4) | (0.29)%(4) | 118% | $20,647 | |||||||||||||||||||||||||||||||||||||||||||||
2019 | $13.79 | —(6) | 2.47 | 2.47 | (0.23) | $16.03 | 18.34% | 1.16% | (0.04)% | 161% | $207 | |||||||||||||||||||||||||||||||||||||||||||||
2018 | $14.89 | (0.08) | (0.25) | (0.33) | (0.77) | $13.79 | (2.36)% | 1.15% | (0.51)% | 147% | $361 | |||||||||||||||||||||||||||||||||||||||||||||
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, 2020 (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.
Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2018 through December 31, 2019. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
24
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 American Century Investments’ website at americancentury.com/proxy 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 americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange
Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on
Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its
fiscal year available on its website at americancentury.com and, upon request, by calling
1-800-345-2021.
25
Notes |
26
Notes |
27
Notes |
28
Notes |
29
Notes |
30
Notes |
31
Notes |
32
![]() | |||||||||||
Contact Us | americancentury.com | ||||||||||
Automated Information Line | 1-800-345-8765 | ||||||||||
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | ||||||||||
Investors Using Advisors | 1-800-378-9878 | ||||||||||
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | ||||||||||
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | ||||||||||
Telecommunications Relay Service for the Deaf | 711 | ||||||||||
American Century 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. | |||||||||||
©2020 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92638 2007 |
![image291.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image291.jpg)
Semiannual Report | |||||
May 31, 2020 | |||||
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) |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.
You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Table of Contents |
President’s Letter | |||||
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Liquidity Risk Management Program | |||||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514a141.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/jthomasrev0514a141.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2020. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Pandemic Led to Severe Economic, Market Disruptions
Early in the reporting period, market sentiment was generally upbeat. Dovish central banks, modest inflation, improving economic and corporate earnings data, and U.S.-China trade-policy progress helped boost global growth outlooks. Against this backdrop, key U.S. stock benchmarks rose to new highs in mid-February, and risk assets largely remained in favor throughout the world.
However, beginning in late February, unprecedented social, health care and economic turmoil quickly quashed the optimistic tone. The COVID-19 outbreak rapidly spread throughout the world, halting most economic activity and triggering worldwide recession fears. Adding to the turmoil, global oil prices collapsed amid plunging demand and a price war between Saudi Arabia and Russia. Global stocks and other riskier assets sold off sharply as investors fled to safe-haven investments.
Central banks and federal governments stepped in quickly and aggressively to stabilize global markets and provide financial relief. These extraordinary efforts proved helpful, as markets broadly rebounded in April and May despite discouraging economic and corporate earnings data. In addition, declining coronavirus infection rates and the reopening of many economies helped fuel the recovery. But the rebound wasn’t enough to offset the effects of the earlier sell-off, and global stocks retreated for the six-month period. U.S. stocks fared better than non-U.S. stocks. Among non-U.S. stocks, developed markets generally declined at a greater pace than emerging markets.
As COVID-19 infections are slowing, most economies across the world are reopening. Nevertheless, the return to pre-pandemic economic and market levels will take time and patience. In the meantime, investors likely will face periods of economic and political uncertainty and heightened market volatility. While these influences can be unsettling, they tend to be temporary.
We appreciate your confidence in us during these extraordinary times. We have a long history of helping clients weather unpredictable markets, and we’re confident we will meet today's challenges.
Sincerely,
![image231.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image231.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2020 | ||||||||
Top Ten Holdings | % of net assets | |||||||
Nestle SA | 3.9% | |||||||
AstraZeneca plc | 2.7% | |||||||
ASML Holding NV | 2.1% | |||||||
Lonza Group AG | 2.0% | |||||||
CSL Ltd. | 2.0% | |||||||
Keyence Corp. | 2.0% | |||||||
LVMH Moet Hennessy Louis Vuitton SE | 2.0% | |||||||
Cellnex Telecom SA | 1.9% | |||||||
Iberdrola SA | 1.9% | |||||||
London Stock Exchange Group plc | 1.8% | |||||||
Types of Investments in Portfolio | % of net assets | |||||||
Common Stocks | 99.7% | |||||||
Temporary Cash Investments | 0.2% | |||||||
Other Assets and Liabilities | 0.1% | |||||||
Investments by Country | % of net assets | |||||||
Japan | 14.3% | |||||||
France | 12.7% | |||||||
Switzerland | 12.0% | |||||||
United Kingdom | 10.3% | |||||||
China | 5.6% | |||||||
Canada | 5.5% | |||||||
Germany | 5.5% | |||||||
Sweden | 5.0% | |||||||
Netherlands | 4.8% | |||||||
Spain | 4.6% | |||||||
Denmark | 4.5% | |||||||
Australia | 3.0% | |||||||
Hong Kong | 2.6% | |||||||
Ireland | 2.3% | |||||||
Other Countries | 7.0% | |||||||
Cash and Equivalents* | 0.3% |
*Includes temporary cash investments and other assets and liabilities.
3
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2019 to May 31, 2020.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
4
Beginning Account Value 12/1/19 | Ending Account Value 5/31/20 | Expenses Paid
During Period(1)
12/1/19 - 5/31/20 | Annualized
Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $974.90 | $5.83 | 1.18% | ||||||||||
I Class | $1,000 | $976.70 | $4.84 | 0.98% | ||||||||||
Y Class | $1,000 | $976.60 | $4.10 | 0.83% | ||||||||||
A Class | $1,000 | $973.50 | $7.06 | 1.43% | ||||||||||
C Class | $1,000 | $970.00 | $10.74 | 2.18% | ||||||||||
R Class | $1,000 | $973.00 | $8.29 | 1.68% | ||||||||||
R5 Class | $1,000 | $975.90 | $4.84 | 0.98% | ||||||||||
R6 Class | $1,000 | $976.60 | $4.10 | 0.83% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,019.10 | $5.96 | 1.18% | ||||||||||
I Class | $1,000 | $1,020.10 | $4.95 | 0.98% | ||||||||||
Y Class | $1,000 | $1,020.85 | $4.19 | 0.83% | ||||||||||
A Class | $1,000 | $1,017.85 | $7.21 | 1.43% | ||||||||||
C Class | $1,000 | $1,014.10 | $10.98 | 2.18% | ||||||||||
R Class | $1,000 | $1,016.60 | $8.47 | 1.68% | ||||||||||
R5 Class | $1,000 | $1,020.10 | $4.95 | 0.98% | ||||||||||
R6 Class | $1,000 | $1,020.85 | $4.19 | 0.83% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 366, 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, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.7% | ||||||||
Australia — 3.0% | ||||||||
Aristocrat Leisure Ltd. | 269,154 | $ | 4,562,531 | |||||
Atlassian Corp. plc, Class A(1) | 39,050 | 7,235,965 | ||||||
CSL Ltd. | 139,580 | 25,463,594 | ||||||
37,262,090 | ||||||||
Belgium — 0.8% | ||||||||
KBC Group NV | 202,830 | 10,652,694 | ||||||
Brazil — 1.0% | ||||||||
Magazine Luiza SA | 1,008,331 | 12,225,515 | ||||||
Canada — 5.5% | ||||||||
Alimentation Couche-Tard, Inc., B Shares | 329,630 | 10,318,519 | ||||||
Canada Goose Holdings, Inc.(1) | 285,970 | 5,582,134 | ||||||
Canadian Pacific Railway Ltd. | 50,950 | 12,770,342 | ||||||
Element Fleet Management Corp. | 1,305,200 | 9,280,537 | ||||||
Intact Financial Corp. | 135,050 | 12,892,452 | ||||||
Shopify, Inc., Class A(1) | 11,460 | 8,697,648 | ||||||
TMX Group Ltd. | 96,980 | 9,720,892 | ||||||
69,262,524 | ||||||||
China — 5.6% | ||||||||
Alibaba Group Holding Ltd., ADR(1) | 95,470 | 19,799,523 | ||||||
ANTA Sports Products Ltd. | 1,245,000 | 11,174,890 | ||||||
GDS Holdings Ltd., ADR(1) | 183,940 | 10,484,580 | ||||||
Huazhu Group Ltd., ADR | 164,285 | 5,556,119 | ||||||
TAL Education Group, ADR(1) | 127,790 | 7,215,023 | ||||||
Tencent Holdings Ltd. | 306,300 | 16,326,230 | ||||||
70,556,365 | ||||||||
Denmark — 4.5% | ||||||||
Carlsberg A/S, B Shares | 129,830 | 16,814,534 | ||||||
DSV Panalpina A/S | 169,662 | 17,994,877 | ||||||
Novo Nordisk A/S, B Shares | 334,030 | 21,777,721 | ||||||
56,587,132 | ||||||||
Finland — 1.4% | ||||||||
Neste Oyj | 435,990 | 17,664,129 | ||||||
France — 12.7% | ||||||||
Air Liquide SA | 151,100 | 20,562,258 | ||||||
Arkema SA | 137,293 | 12,008,022 | ||||||
Dassault Systemes SE | 71,820 | 12,192,062 | ||||||
Edenred | 281,371 | 11,782,987 | ||||||
Iliad SA | 45,010 | 7,940,702 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 58,930 | 24,677,543 | ||||||
Schneider Electric SE | 228,890 | 22,834,536 | ||||||
Teleperformance | 54,600 | 12,961,666 | ||||||
TOTAL SA | 247,610 | 9,309,769 | ||||||
Valeo SA | 791,970 | 19,595,838 | ||||||
Vivendi SA | 275,610 | 6,274,851 | ||||||
160,140,234 |
6
Shares | Value | |||||||
Germany — 5.5% | ||||||||
adidas AG(1) | 62,440 | $ | 16,373,802 | |||||
E.ON SE | 782,760 | 8,284,943 | ||||||
Infineon Technologies AG | 910,509 | 18,976,452 | ||||||
Puma SE(1) | 180,100 | 12,788,105 | ||||||
Symrise AG | 115,620 | 12,617,636 | ||||||
69,040,938 | ||||||||
Hong Kong — 2.6% | ||||||||
AIA Group Ltd. | 2,673,000 | 21,792,391 | ||||||
Techtronic Industries Co. Ltd. | 1,184,500 | 10,308,868 | ||||||
32,101,259 | ||||||||
India — 1.0% | ||||||||
HDFC Bank Ltd. | 1,004,520 | 12,665,215 | ||||||
Indonesia — 0.6% | ||||||||
Bank Central Asia Tbk PT | 4,080,300 | 7,259,758 | ||||||
Ireland — 2.3% | ||||||||
ICON plc(1) | 52,230 | 8,798,143 | ||||||
Kerry Group plc, A Shares | 113,070 | 14,047,131 | ||||||
Ryanair Holdings plc, ADR(1) | 86,810 | 6,230,354 | ||||||
29,075,628 | ||||||||
Italy — 1.4% | ||||||||
Ferrari NV | 56,310 | 9,537,635 | ||||||
Prysmian SpA | 386,710 | 8,262,822 | ||||||
17,800,457 | ||||||||
Japan — 14.3% | ||||||||
GMO Payment Gateway, Inc. | 79,700 | 8,978,009 | ||||||
Hoya Corp. | 223,200 | 20,950,143 | ||||||
Keyence Corp. | 60,000 | 24,709,659 | ||||||
Kobe Bussan Co. Ltd. | 162,000 | 8,394,293 | ||||||
MonotaRO Co. Ltd. | 455,700 | 16,566,408 | ||||||
Murata Manufacturing Co. Ltd. | 408,800 | 22,849,656 | ||||||
Obic Co. Ltd. | 75,600 | 13,116,465 | ||||||
Olympus Corp. | 191,000 | 3,323,233 | ||||||
Pan Pacific International Holdings Corp. | 654,300 | 13,190,051 | ||||||
Recruit Holdings Co. Ltd. | 661,600 | 22,826,605 | ||||||
Rohm Co. Ltd. | 105,200 | 7,092,286 | ||||||
Terumo Corp. | 466,700 | 18,344,895 | ||||||
180,341,703 | ||||||||
Netherlands — 4.8% | ||||||||
Adyen NV(1) | 13,058 | 17,179,250 | ||||||
ASML Holding NV | 80,470 | 26,342,023 | ||||||
Koninklijke DSM NV | 132,000 | 16,941,338 | ||||||
60,462,611 | ||||||||
Spain — 4.6% | ||||||||
Amadeus IT Group SA | 203,723 | 10,667,539 | ||||||
Cellnex Telecom SA | 425,694 | 24,168,254 | ||||||
Iberdrola SA | 2,179,766 | 23,526,381 | ||||||
58,362,174 | ||||||||
Sweden — 5.0% | ||||||||
Atlas Copco AB, A Shares | 305,830 | 12,042,196 | ||||||
Hexagon AB, B Shares(1) | 323,770 | 17,870,558 | ||||||
Lundin Energy AB | 622,398 | 15,080,751 |
7
Shares | Value | |||||||
Telefonaktiebolaget LM Ericsson, B Shares | 1,990,970 | $ | 18,174,042 | |||||
63,167,547 | ||||||||
Switzerland — 12.0% | ||||||||
Lonza Group AG | 51,830 | 25,521,541 | ||||||
Nestle SA | 451,150 | 48,845,718 | ||||||
Novartis AG | 200,580 | 17,388,201 | ||||||
Partners Group Holding AG | 17,310 | 14,383,844 | ||||||
Sika AG | 100,043 | 17,190,729 | ||||||
Temenos AG | 94,290 | 14,468,849 | ||||||
Zurich Insurance Group AG | 38,880 | 12,579,303 | ||||||
150,378,185 | ||||||||
Taiwan — 0.8% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 996,000 | 9,700,257 | ||||||
United Kingdom — 10.3% | ||||||||
Ashtead Group plc | 273,090 | 8,127,706 | ||||||
ASOS plc(1) | 537,404 | 19,940,931 | ||||||
Associated British Foods plc | 444,170 | 10,032,542 | ||||||
AstraZeneca plc | 314,230 | 33,410,279 | ||||||
Ferguson plc | 104,450 | 8,250,116 | ||||||
Halma plc | 223,020 | 6,446,105 | ||||||
London Stock Exchange Group plc | 231,740 | 23,072,791 | ||||||
Ocado Group plc(1) | 366,330 | 9,947,058 | ||||||
Reckitt Benckiser Group plc | 114,980 | 10,285,116 | ||||||
129,512,644 | ||||||||
TOTAL COMMON STOCKS
(Cost $959,150,902) | 1,254,219,059 | |||||||
TEMPORARY CASH INVESTMENTS — 0.2% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.25%, 5/15/25 - 2/15/27, valued at $855,161), in a joint trading account at 0.01%, dated 5/29/20, due 6/1/20 (Delivery value $837,841) | 837,840 | |||||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.125%, 3/31/24, valued at $1,379,922), at 0.03%, dated 5/29/20, due 6/1/20 (Delivery value $1,351,003) | 1,351,000 | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 1,938 | 1,938 | ||||||
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $2,190,778) | 2,190,778 | |||||||
TOTAL INVESTMENT SECURITIES — 99.9%
(Cost $961,341,680) | 1,256,409,837 | |||||||
OTHER ASSETS AND LIABILITIES — 0.1% | 1,534,323 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 1,257,944,160 |
8
MARKET SECTOR DIVERSIFICATION | ||||||||
(as a % of net assets) | ||||||||
Information Technology | 21.2% | |||||||
Consumer Discretionary | 15.5% | |||||||
Health Care | 13.9% | |||||||
Industrials | 12.5% | |||||||
Financials | 10.6% | |||||||
Consumer Staples | 9.5% | |||||||
Materials | 6.3% | |||||||
Communication Services | 4.3% | |||||||
Energy | 3.3% | |||||||
Utilities | 2.6% | |||||||
Cash and Equivalents* | 0.3% |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||||||||
ADR | - | American Depositary Receipt |
(1)Non-income producing.
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2020 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $961,341,680) | $ | 1,256,409,837 | |||
Foreign currency holdings, at value (cost of $47,469) | 47,472 | ||||
Receivable for investments sold | 27,037,582 | ||||
Receivable for capital shares sold | 227,036 | ||||
Dividends and interest receivable | 3,605,516 | ||||
Other assets | 80,090 | ||||
1,287,407,533 | |||||
Liabilities | |||||
Payable for investments purchased | 26,013,814 | ||||
Payable for capital shares redeemed | 2,205,191 | ||||
Accrued management fees | 1,172,074 | ||||
Distribution and service fees payable | 17,712 | ||||
Accrued foreign taxes | 54,582 | ||||
29,463,373 | |||||
Net Assets | $ | 1,257,944,160 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 991,625,298 | |||
Distributable earnings | 266,318,862 | ||||
$ | 1,257,944,160 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $1,055,589,055 | 88,000,342 | $12.00 | ||||||||
I Class, $0.01 Par Value | $66,250,734 | 5,564,086 | $11.91 | ||||||||
Y Class, $0.01 Par Value | $22,053,084 | 1,851,598 | $11.91 | ||||||||
A Class, $0.01 Par Value | $69,001,848 | 5,709,533 | $12.09* | ||||||||
C Class, $0.01 Par Value | $2,005,796 | 173,271 | $11.58 | ||||||||
R Class, $0.01 Par Value | $5,253,758 | 430,890 | $12.19 | ||||||||
R5 Class, $0.01 Par Value | $6,217 | 522 | $11.91 | ||||||||
R6 Class, $0.01 Par Value | $37,783,668 | 3,174,262 | $11.90 |
*Maximum offering price $12.83 (net asset value divided by 0.9425).
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $1,546,312) | $ | 11,134,248 | |||
Securities lending, net | 44,346 | ||||
Interest | 29,929 | ||||
11,208,523 | |||||
Expenses: | |||||
Management fees | 7,295,748 | ||||
Distribution and service fees: | |||||
A Class | 82,996 | ||||
C Class | 11,644 | ||||
R Class | 13,267 | ||||
Directors' fees and expenses | 20,536 | ||||
Other expenses | 15,150 | ||||
7,439,341 | |||||
Net investment income (loss) | 3,769,182 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions (net of foreign tax expenses paid (refunded) of $1,229) | (30,667,645) | ||||
Foreign currency translation transactions | (147,376) | ||||
(30,815,021) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments (includes (increase) decrease in accrued foreign taxes of $151,872) | (7,324,597) | ||||
Translation of assets and liabilities in foreign currencies | 110,754 | ||||
(7,213,843) | |||||
Net realized and unrealized gain (loss) | (38,028,864) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (34,259,682) |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2019 | ||||||||||||||
Increase (Decrease) in Net Assets | May 31, 2020 | November 30, 2019 | ||||||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 3,769,182 | $ | 5,729,293 | ||||||||||
Net realized gain (loss) | (30,815,021) | 19,513,072 | ||||||||||||
Change in net unrealized appreciation (depreciation) | (7,213,843) | 179,991,328 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | (34,259,682) | 205,233,693 | ||||||||||||
Distributions to Shareholders | ||||||||||||||
From earnings: | ||||||||||||||
Investor Class | (4,906,875) | (113,411,938) | ||||||||||||
I Class | (471,463) | (6,954,669) | ||||||||||||
Y Class | (151,818) | (673,691) | ||||||||||||
A Class | (231,840) | (6,300,639) | ||||||||||||
C Class | (9,443) | (380,655) | ||||||||||||
R Class | (19,202) | (308,126) | ||||||||||||
R5 Class | (40) | (561) | ||||||||||||
R6 Class | (297,497) | (3,902,361) | ||||||||||||
Decrease in net assets from distributions | (6,088,178) | (131,932,640) | ||||||||||||
Capital Share Transactions | ||||||||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (71,800,293) | (60,754,535) | ||||||||||||
Net increase (decrease) in net assets | (112,148,153) | 12,546,518 | ||||||||||||
Net Assets | ||||||||||||||
Beginning of period | 1,370,092,313 | 1,357,545,795 | ||||||||||||
End of period | $ | 1,257,944,160 | $ | 1,370,092,313 | ||||||||||
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2020 (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.
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.
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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. 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. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
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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.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
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, 18% of the shares of the fund.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The 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.
15
The management fee schedule range and the effective annual management fee for each class for the period ended May 31, 2020 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |||||||
Investor Class | 1.050% to 1.500% | 1.17% | ||||||
I Class | 0.850% to 1.300% | 0.97% | ||||||
Y Class | 0.700% to 1.150% | 0.82% | ||||||
A Class | 1.050% to 1.500% | 1.17% | ||||||
C Class | 1.050% to 1.500% | 1.17% | ||||||
R Class | 1.050% to 1.500% | 1.17% | ||||||
R5 Class | 0.850% to 1.300% | 0.97% | ||||||
R6 Class | 0.700% to 1.150% | 0.82% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2020 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. 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, 2020 were $361,695,293 and $418,907,628, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2020 | Year ended November 30, 2019 | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Investor Class/Shares Authorized | 1,250,000,000 | 1,250,000,000 | ||||||||||||||||||
Sold | 2,279,169 | $ | 25,122,123 | 2,936,669 | $ | 32,672,588 | ||||||||||||||
Issued in reinvestment of distributions | 379,819 | 4,748,521 | 11,000,262 | 110,112,626 | ||||||||||||||||
Redeemed | (8,816,091) | (103,583,745) | (18,952,247) | (213,897,065) | ||||||||||||||||
(6,157,103) | (73,713,101) | (5,015,316) | (71,111,851) | |||||||||||||||||
I Class/Shares Authorized | 90,000,000 | 90,000,000 | ||||||||||||||||||
Sold | 644,786 | 7,549,444 | 1,106,320 | 12,258,681 | ||||||||||||||||
Issued in reinvestment of distributions | 36,444 | 453,353 | 671,521 | 6,668,204 | ||||||||||||||||
Redeemed | (1,202,505) | (13,699,017) | (1,445,190) | (16,173,218) | ||||||||||||||||
(521,275) | (5,696,220) | 332,651 | 2,753,667 | |||||||||||||||||
Y Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 449,532 | 5,148,248 | 1,061,894 | 12,025,226 | ||||||||||||||||
Issued in reinvestment of distributions | 12,036 | 149,903 | 65,166 | 646,443 | ||||||||||||||||
Redeemed | (131,260) | (1,495,628) | (130,199) | (1,497,748) | ||||||||||||||||
330,308 | 3,802,523 | 996,861 | 11,173,921 | |||||||||||||||||
A Class/Shares Authorized | 80,000,000 | 80,000,000 | ||||||||||||||||||
Sold | 870,170 | 10,558,840 | 923,390 | 10,602,327 | ||||||||||||||||
Issued in reinvestment of distributions | 18,170 | 228,255 | 614,961 | 6,217,253 | ||||||||||||||||
Redeemed | (629,531) | (7,359,656) | (1,526,896) | (17,523,483) | ||||||||||||||||
258,809 | 3,427,439 | 11,455 | (703,903) | |||||||||||||||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 8,393 | 88,798 | 7,853 | 81,463 | ||||||||||||||||
Issued in reinvestment of distributions | 695 | 8,410 | 36,374 | 356,101 | ||||||||||||||||
Redeemed | (60,888) | (649,415) | (190,670) | (2,084,116) | ||||||||||||||||
(51,800) | (552,207) | (146,443) | (1,646,552) | |||||||||||||||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 33,864 | 400,397 | 338,828 | 3,544,091 | ||||||||||||||||
Issued in reinvestment of distributions | 1,499 | 19,053 | 28,116 | 287,906 | ||||||||||||||||
Redeemed | (87,121) | (1,068,567) | (152,739) | (1,796,153) | ||||||||||||||||
(51,758) | (649,117) | 214,205 | 2,035,844 | |||||||||||||||||
R5 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||||||||
Issued in reinvestment of distributions | 3 | 40 | 57 | 561 | ||||||||||||||||
R6 Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||||||||||||
Sold | 734,806 | 8,160,799 | 893,061 | 9,948,629 | ||||||||||||||||
Issued in reinvestment of distributions | 23,795 | 296,197 | 392,562 | 3,894,212 | ||||||||||||||||
Redeemed | (604,797) | (6,876,646) | (1,520,322) | (17,099,063) | ||||||||||||||||
153,804 | 1,580,350 | (234,699) | (3,256,222) | |||||||||||||||||
Net increase (decrease) | (6,039,012) | $ | (71,800,293) | (3,841,229) | $ | (60,754,535) |
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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.
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 | $ | 7,235,965 | $ | 30,026,125 | — | ||||||
Canada | 5,582,134 | 63,680,390 | — | ||||||||
China | 43,055,245 | 27,501,120 | — | ||||||||
Ireland | 15,028,497 | 14,047,131 | — | ||||||||
Other Countries | — | 1,048,062,452 | — | ||||||||
Temporary Cash Investments | 1,938 | 2,188,840 | — | ||||||||
$ | 70,903,779 | $ | 1,185,506,058 | — |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
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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 | $ | 962,145,562 | |||
Gross tax appreciation of investments | $ | 316,942,292 | |||
Gross tax depreciation of investments | (22,678,017) | ||||
Net tax appreciation (depreciation) of investments | $ | 294,264,275 |
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.35 | 0.03 | (0.33) | (0.30) | (0.01) | (0.04) | (0.05) | $12.00 | (2.51)% | 1.18%(4) | 0.58%(4) | 29% | $1,055,589 | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.83 | 0.05 | 1.66 | 1.71 | (0.12) | (1.07) | (1.19) | $12.35 | 16.82% | 1.18% | 0.43% | 68% | $1,162,998 | |||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.80 | 0.08 | (1.28) | (1.20) | (0.13) | (0.64) | (0.77) | $11.83 | (9.23)% | 1.17% | 0.62% | 69% | $1,173,094 | |||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||
I Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.27 | 0.05 | (0.33) | (0.28) | (0.04) | (0.04) | (0.08) | $11.91 | (2.33)% | 0.98%(4) | 0.78%(4) | 29% | $66,251 | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.76 | 0.07 | 1.66 | 1.73 | (0.15) | (1.07) | (1.22) | $12.27 | 17.09% | 0.98% | 0.63% | 68% | $74,688 | |||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.74 | 0.10 | (1.28) | (1.18) | (0.16) | (0.64) | (0.80) | $11.76 | (9.12)% | 0.97% | 0.82% | 69% | $67,677 | |||||||||||||||||||||||||||||||||||||||||||||||||
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 |
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) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Y Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.29 | 0.06 | (0.35) | (0.29) | (0.05) | (0.04) | (0.09) | $11.91 | (2.34)% | 0.83%(4) | 0.93%(4) | 29% | $22,053 | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.78 | 0.08 | 1.66 | 1.74 | (0.16) | (1.07) | (1.23) | $12.29 | 17.27% | 0.83% | 0.78% | 68% | $18,691 | |||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.75 | 0.15 | (1.30) | (1.15) | (0.18) | (0.64) | (0.82) | $11.78 | (8.95)% | 0.82% | 0.97% | 69% | $6,177 | |||||||||||||||||||||||||||||||||||||||||||||||||
2017(5) | $11.48 | 0.09 | 2.18 | 2.27 | — | — | — | $13.75 | 19.77% | 0.82%(4) | 1.14%(4) | 57%(6) | $6 | |||||||||||||||||||||||||||||||||||||||||||||||||
A Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.45 | 0.02 | (0.34) | (0.32) | — | (0.04) | (0.04) | $12.09 | (2.65)% | 1.43%(4) | 0.33%(4) | 29% | $69,002 | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.91 | 0.02 | 1.69 | 1.71 | (0.10) | (1.07) | (1.17) | $12.45 | 16.56% | 1.43% | 0.18% | 68% | $67,857 | |||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.88 | 0.05 | (1.29) | (1.24) | (0.09) | (0.64) | (0.73) | $11.91 | (9.45)% | 1.42% | 0.37% | 69% | $64,784 | |||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||
C Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $11.97 | (0.03) | (0.32) | (0.35) | — | (0.04) | (0.04) | $11.58 | (3.00)% | 2.18%(4) | (0.42)%(4) | 29% | $2,006 | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.49 | (0.06) | 1.62 | 1.56 | (0.01) | (1.07) | (1.08) | $11.97 | 15.66% | 2.18% | (0.57)% | 68% | $2,694 | |||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.42 | (0.04) | (1.25) | (1.29) | — | (0.64) | (0.64) | $11.49 | (10.12)% | 2.17% | (0.38)% | 69% | $4,268 | |||||||||||||||||||||||||||||||||||||||||||||||||
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 |
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.58 | —(7) | (0.35) | (0.35) | — | (0.04) | (0.04) | $12.19 | (2.70)% | 1.68%(4) | 0.08%(4) | 29% | $5,254 | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $12.02 | (0.01) | 1.71 | 1.70 | (0.07) | (1.07) | (1.14) | $12.58 | 16.17% | 1.68% | (0.07)% | 68% | $6,069 | |||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $14.00 | 0.02 | (1.30) | (1.28) | (0.06) | (0.64) | (0.70) | $12.02 | (9.68)% | 1.67% | 0.12% | 69% | $3,226 | |||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||
R5 Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.28 | 0.05 | (0.34) | (0.29) | (0.04) | (0.04) | (0.08) | $11.91 | (2.41)% | 0.98%(4) | 0.78%(4) | 29% | $6 | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.77 | 0.07 | 1.66 | 1.73 | (0.15) | (1.07) | (1.22) | $12.28 | 17.09% | 0.98% | 0.63% | 68% | $6 | |||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.73 | 0.11 | (1.27) | (1.16) | (0.16) | (0.64) | (0.80) | $11.77 | (9.03)% | 0.97% | 0.82% | 69% | $5 | |||||||||||||||||||||||||||||||||||||||||||||||||
2017(5) | $11.48 | 0.08 | 2.17 | 2.25 | — | — | — | $13.73 | 19.60% | 0.97%(4) | 0.99%(4) | 57%(6) | $6 | |||||||||||||||||||||||||||||||||||||||||||||||||
R6 Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $12.28 | 0.06 | (0.35) | (0.29) | (0.05) | (0.04) | (0.09) | $11.90 | (2.34)% | 0.83%(4) | 0.93%(4) | 29% | $37,784 | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.77 | 0.09 | 1.65 | 1.74 | (0.16) | (1.07) | (1.23) | $12.28 | 17.28% | 0.83% | 0.78% | 68% | $37,088 | |||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.75 | 0.14 | (1.29) | (1.15) | (0.19) | (0.64) | (0.83) | $11.77 | (8.93)% | 0.82% | 0.97% | 69% | $38,315 | |||||||||||||||||||||||||||||||||||||||||||||||||
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 |
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, 2020 (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.
See Notes to Financial Statements.
Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2018 through December 31, 2019. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
24
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 American Century Investments’ website at americancentury.com/proxy 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 americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange
Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on
Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its
fiscal year available on its website at americancentury.com and, upon request, by calling
1-800-345-2021.
25
Notes |
26
Notes |
27
Notes |
28
Notes |
29
Notes |
30
Notes |
31
Notes |
32
![]() | |||||||||||
Contact Us | americancentury.com | ||||||||||
Automated Information Line | 1-800-345-8765 | ||||||||||
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | ||||||||||
Investors Using Advisors | 1-800-378-9878 | ||||||||||
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | ||||||||||
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | ||||||||||
Telecommunications Relay Service for the Deaf | 711 | ||||||||||
American Century 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. | |||||||||||
©2020 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92630 2007 |
![image291.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image291.jpg)
Semiannual Report | |||||
May 31, 2020 | |||||
International Opportunities Fund | |||||
Investor Class (AIOIX) | |||||
I Class (ACIOX) | |||||
A Class (AIVOX) | |||||
C Class (AIOCX) | |||||
R Class (AIORX) |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.
You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Table of Contents |
President’s Letter | |||||
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Liquidity Risk Management Program | |||||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514a141.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/jthomasrev0514a141.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2020. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Pandemic Led to Severe Economic, Market Disruptions
Early in the reporting period, market sentiment was generally upbeat. Dovish central banks, modest inflation, improving economic and corporate earnings data, and U.S.-China trade-policy progress helped boost global growth outlooks. Against this backdrop, key U.S. stock benchmarks rose to new highs in mid-February, and risk assets largely remained in favor throughout the world.
However, beginning in late February, unprecedented social, health care and economic turmoil quickly quashed the optimistic tone. The COVID-19 outbreak rapidly spread throughout the world, halting most economic activity and triggering worldwide recession fears. Adding to the turmoil, global oil prices collapsed amid plunging demand and a price war between Saudi Arabia and Russia. Global stocks and other riskier assets sold off sharply as investors fled to safe-haven investments.
Central banks and federal governments stepped in quickly and aggressively to stabilize global markets and provide financial relief. These extraordinary efforts proved helpful, as markets broadly rebounded in April and May despite discouraging economic and corporate earnings data. In addition, declining coronavirus infection rates and the reopening of many economies helped fuel the recovery. But the rebound wasn’t enough to offset the effects of the earlier sell-off, and global stocks retreated for the six-month period. U.S. stocks fared better than non-U.S. stocks. Among non-U.S. stocks, developed markets generally declined at a greater pace than emerging markets.
As COVID-19 infections are slowing, most economies across the world are reopening. Nevertheless, the return to pre-pandemic economic and market levels will take time and patience. In the meantime, investors likely will face periods of economic and political uncertainty and heightened market volatility. While these influences can be unsettling, they tend to be temporary.
We appreciate your confidence in us during these extraordinary times. We have a long history of helping clients weather unpredictable markets, and we’re confident we will meet today's challenges.
Sincerely,
![image231.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image231.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2020 | |||||
Top Ten Holdings | % of net assets | ||||
A-Living Services Co. Ltd., H Shares | 1.7% | ||||
Intermediate Capital Group plc | 1.6% | ||||
Gold Road Resources Ltd. | 1.5% | ||||
MorphoSys AG | 1.4% | ||||
Lasertec Corp. | 1.4% | ||||
Saracen Mineral Holdings Ltd. | 1.4% | ||||
Huhtamaki Oyj | 1.3% | ||||
Harmonic Drive Systems, Inc. | 1.3% | ||||
Nabtesco Corp. | 1.3% | ||||
Seven Group Holdings Ltd. | 1.3% | ||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 99.3% | ||||
Temporary Cash Investments | 0.8% | ||||
Other Assets and Liabilities | (0.1)% | ||||
Investments by Country | % of net assets | ||||
Japan | 18.9% | ||||
United Kingdom | 12.7% | ||||
Canada | 9.7% | ||||
Australia | 7.5% | ||||
Sweden | 7.1% | ||||
Germany | 6.7% | ||||
Taiwan | 5.3% | ||||
China | 5.3% | ||||
Switzerland | 3.6% | ||||
Italy | 2.6% | ||||
Hong Kong | 2.4% | ||||
South Korea | 2.3% | ||||
France | 2.3% | ||||
Other Countries | 12.9% | ||||
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, 2019 to May 31, 2020.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
4
Beginning Account Value 12/1/19 | Ending Account Value 5/31/20 | Expenses Paid During Period(1) 12/1/19 - 5/31/20 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,015.30 | $7.10 | 1.41% | ||||||||||
I Class | $1,000 | $1,017.10 | $6.10 | 1.21% | ||||||||||
A Class | $1,000 | $1,014.80 | $8.36 | 1.66% | ||||||||||
C Class | $1,000 | $1,011.40 | $12.12 | 2.41% | ||||||||||
R Class | $1,000 | $1,013.40 | $9.61 | 1.91% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,017.95 | $7.11 | 1.41% | ||||||||||
I Class | $1,000 | $1,018.95 | $6.11 | 1.21% | ||||||||||
A Class | $1,000 | $1,016.70 | $8.37 | 1.66% | ||||||||||
C Class | $1,000 | $1,012.95 | $12.13 | 2.41% | ||||||||||
R Class | $1,000 | $1,015.45 | $9.62 | 1.91% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 366, 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, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.3% | ||||||||
Argentina — 0.6% | ||||||||
Globant SA(1) | 23,256 | $ | 3,260,724 | |||||
Australia — 7.5% | ||||||||
Afterpay Ltd.(1) | 119,244 | 3,789,772 | ||||||
Breville Group Ltd. | 228,693 | 3,364,797 | ||||||
carsales.com Ltd. | 285,534 | 3,037,776 | ||||||
Gold Road Resources Ltd.(1) | 6,618,534 | 7,914,207 | ||||||
NEXTDC Ltd.(1) | 750,809 | 4,585,582 | ||||||
NRW Holdings Ltd. | 2,944,805 | 3,749,448 | ||||||
Saracen Mineral Holdings Ltd.(1) | 2,196,958 | 7,410,159 | ||||||
Seven Group Holdings Ltd. | 653,849 | 6,980,360 | ||||||
40,832,101 | ||||||||
Belgium — 1.9% | ||||||||
Argenx SE(1) | 29,594 | 6,324,490 | ||||||
Fagron | 154,822 | 3,702,448 | ||||||
10,026,938 | ||||||||
Brazil — 0.9% | ||||||||
Arco Platform Ltd., Class A(1) | 47,207 | 2,288,595 | ||||||
TOTVS SA | 687,400 | 2,591,775 | ||||||
4,880,370 | ||||||||
Canada — 9.7% | ||||||||
Alamos Gold, Inc., Class A (New York) | 839,851 | 6,802,793 | ||||||
ATS Automation Tooling Systems, Inc.(1) | 210,993 | 3,066,398 | ||||||
Boyd Group Services, Inc. | 28,916 | 4,426,499 | ||||||
BRP, Inc. | 146,671 | 5,079,183 | ||||||
Descartes Systems Group, Inc. (The)(1) | 95,104 | 4,533,992 | ||||||
Element Fleet Management Corp. | 666,375 | 4,738,215 | ||||||
FirstService Corp. | 52,739 | 4,902,542 | ||||||
Gibson Energy, Inc. | 168,445 | 2,605,860 | ||||||
Innergex Renewable Energy, Inc. | 232,361 | 3,196,367 | ||||||
Kinaxis, Inc.(1) | 16,606 | 2,144,180 | ||||||
Parex Resources, Inc.(1) | 337,687 | 3,796,633 | ||||||
Real Matters, Inc.(1) | 143,110 | 2,468,579 | ||||||
TFI International, Inc. | 172,348 | 5,219,822 | ||||||
52,981,063 | ||||||||
China — 5.3% | ||||||||
A-Living Services Co. Ltd., H Shares | 1,760,500 | 9,483,043 | ||||||
China Yongda Automobiles Services Holdings Ltd. | 6,656,500 | 6,952,387 | ||||||
GDS Holdings Ltd., ADR(1) | 99,250 | 5,657,250 | ||||||
Kingsoft Cloud Holdings Ltd., ADR(1) | 111,735 | 2,250,343 | ||||||
Times China Holdings Ltd. | 2,938,000 | 4,331,937 | ||||||
28,674,960 | ||||||||
Denmark — 1.4% | ||||||||
Netcompany Group A/S(1) | 35,434 | 2,158,422 | ||||||
Royal Unibrew A/S(1) | 64,207 | 5,157,762 | ||||||
7,316,184 |
6
Shares | Value | |||||||
Finland — 1.9% | ||||||||
Huhtamaki Oyj(1) | 176,020 | $ | 7,127,623 | |||||
Valmet Oyj(1) | 124,403 | 3,243,367 | ||||||
10,370,990 | ||||||||
France — 2.3% | ||||||||
Euronext NV | 43,495 | 4,018,735 | ||||||
Korian SA | 143,945 | 5,190,945 | ||||||
SOITEC(1) | 34,785 | 3,392,875 | ||||||
12,602,555 | ||||||||
Germany — 6.7% | ||||||||
Bechtle AG | 25,929 | 4,539,735 | ||||||
CompuGroup Medical SE | 31,545 | 2,576,043 | ||||||
Evotec SE(1) | 158,621 | 4,249,878 | ||||||
Flatex AG(1) | 94,445 | 3,274,738 | ||||||
HelloFresh SE(1) | 121,856 | 4,966,901 | ||||||
MorphoSys AG(1) | 59,309 | 7,675,251 | ||||||
Sixt SE | 16,470 | 1,316,035 | ||||||
Stroeer SE & Co. KGaA | 71,424 | 5,184,656 | ||||||
Varta AG(1) | 25,630 | 2,629,916 | ||||||
36,413,153 | ||||||||
Hong Kong — 2.4% | ||||||||
Ausnutria Dairy Corp. Ltd.(1) | 2,805,000 | 5,663,656 | ||||||
Man Wah Holdings Ltd. | 4,512,400 | 3,526,220 | ||||||
Minth Group Ltd. | 1,400,000 | 3,840,738 | ||||||
13,030,614 | ||||||||
India — 1.1% | ||||||||
Bata India Ltd. | 116,869 | 2,046,735 | ||||||
Indraprastha Gas Ltd. | 652,281 | 4,060,970 | ||||||
6,107,705 | ||||||||
Israel — 0.9% | ||||||||
AudioCodes Ltd. | 69,093 | 2,532,258 | ||||||
Kornit Digital Ltd.(1) | 55,328 | 2,586,584 | ||||||
5,118,842 | ||||||||
Italy — 2.6% | ||||||||
Amplifon SpA(1) | 144,944 | 4,037,360 | ||||||
Falck Renewables SpA | 748,033 | 4,492,961 | ||||||
FinecoBank Banca Fineco SpA(1) | 234,487 | 2,751,797 | ||||||
Pirelli & C SpA | 588,329 | 2,645,780 | ||||||
13,927,898 | ||||||||
Japan — 18.9% | ||||||||
Anritsu Corp. | 287,400 | 5,668,295 | ||||||
Cosmos Pharmaceutical Corp. | 32,600 | 4,680,017 | ||||||
GMO Payment Gateway, Inc. | 29,900 | 3,368,161 | ||||||
Harmonic Drive Systems, Inc. | 122,800 | 7,098,960 | ||||||
IR Japan Holdings Ltd. | 800 | 71,068 | ||||||
Kakaku.com, Inc. | 154,900 | 3,752,024 | ||||||
Kobe Bussan Co. Ltd. | 108,500 | 5,622,103 | ||||||
Lasertec Corp. | 92,100 | 7,578,155 | ||||||
Menicon Co. Ltd. | 59,500 | 3,027,918 | ||||||
Nabtesco Corp. | 227,900 | 7,085,382 | ||||||
Nihon Kohden Corp. | 167,000 | 5,572,954 |
7
Shares | Value | |||||||
Nihon M&A Center, Inc. | 150,300 | $ | 6,045,995 | |||||
Nippon Gas Co. Ltd. | 84,500 | 3,348,705 | ||||||
Nissan Chemical Corp. | 119,600 | 5,285,909 | ||||||
Park24 Co. Ltd. | 262,000 | 5,092,307 | ||||||
SCREEN Holdings Co. Ltd. | 103,800 | 4,658,464 | ||||||
Seria Co. Ltd. | 112,800 | 3,618,158 | ||||||
SHIFT, Inc.(1) | 53,800 | 5,088,690 | ||||||
SHO-BOND Holdings Co. Ltd. | 146,200 | 6,769,171 | ||||||
Topcon Corp. | 67,600 | 593,937 | ||||||
UT Group Co. Ltd.(1) | 262,800 | 4,938,066 | ||||||
Zeon Corp. | 405,400 | 3,908,176 | ||||||
102,872,615 | ||||||||
Netherlands — 1.9% | ||||||||
ASM International NV | 44,544 | 5,207,848 | ||||||
Basic-Fit NV(1) | 20,722 | 528,084 | ||||||
IMCD NV | 50,017 | 4,731,854 | ||||||
10,467,786 | ||||||||
Norway — 1.0% | ||||||||
Bakkafrost P/F | 60,171 | 3,757,906 | ||||||
Subsea 7 SA(1) | 314,184 | 1,815,611 | ||||||
5,573,517 | ||||||||
Poland — 0.8% | ||||||||
Dino Polska SA(1) | 88,989 | 4,067,892 | ||||||
South Korea — 2.3% | ||||||||
BGF retail Co. Ltd. | 21,054 | 2,847,562 | ||||||
Douzone Bizon Co. Ltd. | 64,506 | 6,267,136 | ||||||
Orion Corp/Republic of Korea | 33,867 | 3,616,275 | ||||||
12,730,973 | ||||||||
Sweden — 7.1% | ||||||||
AAK AB(1) | 247,984 | 4,525,997 | ||||||
Embracer Group AB(1) | 341,862 | 4,167,237 | ||||||
Fastighets AB Balder, B Shares(1) | 64,890 | 2,661,756 | ||||||
Lifco AB, B Shares | 69,949 | 4,289,954 | ||||||
Lindab International AB | 359,121 | 3,644,190 | ||||||
Loomis AB, B Shares(1) | 203,150 | 5,119,058 | ||||||
Samhallsbyggnadsbolaget i Norden AB | 1,441,504 | 2,904,723 | ||||||
Sinch AB(1) | 86,067 | 5,769,678 | ||||||
Stillfront Group AB(1) | 76,180 | 5,601,559 | ||||||
38,684,152 | ||||||||
Switzerland — 3.6% | ||||||||
Cembra Money Bank AG | 38,250 | 3,794,719 | ||||||
SIG Combibloc Group AG(1) | 317,401 | 5,322,065 | ||||||
Tecan Group AG | 17,078 | 5,984,152 | ||||||
Zur Rose Group AG(1) | 21,300 | 4,290,253 | ||||||
19,391,189 | ||||||||
Taiwan — 5.3% | ||||||||
Accton Technology Corp. | 817,000 | 6,581,395 | ||||||
Airtac International Group | 329,000 | 5,654,383 | ||||||
ASPEED Technology, Inc. | 94,000 | 4,856,879 | ||||||
Chailease Holding Co. Ltd. | 1,662,786 | 6,464,686 | ||||||
Merida Industry Co. Ltd. | 445,000 | 2,672,123 |
8
Shares | Value | |||||||
TCI Co. Ltd. | 283,000 | $ | 2,492,524 | |||||
28,721,990 | ||||||||
Turkey — 0.5% | ||||||||
Ulker Biskuvi Sanayi AS(1) | 731,496 | 2,535,551 | ||||||
United Kingdom — 12.7% | ||||||||
Avast plc | 901,960 | 5,626,102 | ||||||
Bellway plc | 160,799 | 5,124,689 | ||||||
boohoo Group plc(1) | 1,267,303 | 6,088,708 | ||||||
Dechra Pharmaceuticals plc | 83,343 | 2,872,653 | ||||||
Electrocomponents plc | 670,177 | 5,281,785 | ||||||
Future plc | 336,773 | 5,759,352 | ||||||
Games Workshop Group plc | 40,414 | 3,984,816 | ||||||
HomeServe plc | 398,292 | 6,402,447 | ||||||
Intermediate Capital Group plc | 559,391 | 8,821,036 | ||||||
JD Sports Fashion plc | 653,356 | 5,334,978 | ||||||
Nomad Foods Ltd.(1) | 118,924 | 2,518,810 | ||||||
Serco Group plc(1) | 2,454,362 | 3,861,000 | ||||||
Trainline plc(1) | 799,892 | 4,843,000 | ||||||
UNITE Group plc (The) | 250,694 | 2,696,551 | ||||||
69,215,927 | ||||||||
TOTAL COMMON STOCKS
(Cost $439,869,673) | 539,805,689 | |||||||
TEMPORARY CASH INVESTMENTS — 0.8% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.25%, 5/15/25 - 2/15/27, valued at $1,508,362), in a joint trading account at 0.01%, dated 5/29/20, due 6/1/20 (Delivery value $1,477,813) | 1,477,811 | |||||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 0.50%, 4/15/24, valued at $2,431,417), at 0.03%, dated 5/29/20, due 6/1/20 (Delivery value $2,383,006) | 2,383,000 | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 762,804 | 762,804 | ||||||
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $4,623,615) | 4,623,615 | |||||||
TOTAL INVESTMENT SECURITIES — 100.1%
(Cost $444,493,288) | 544,429,304 | |||||||
OTHER ASSETS AND LIABILITIES — (0.1)% | (693,062) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 543,736,242 |
9
MARKET SECTOR DIVERSIFICATION | ||||||||
(as a % of net assets) | ||||||||
Industrials | 21.0 | % | ||||||
Information Technology | 19.5 | % | ||||||
Consumer Discretionary | 12.3 | % | ||||||
Consumer Staples | 9.7 | % | ||||||
Health Care | 9.6 | % | ||||||
Materials | 8.0 | % | ||||||
Financials | 6.2 | % | ||||||
Communication Services | 5.2 | % | ||||||
Real Estate | 3.6 | % | ||||||
Utilities | 2.7 | % | ||||||
Energy | 1.5 | % | ||||||
Cash and Equivalents* | 0.7 | % |
*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.
10
Statement of Assets and Liabilities |
MAY 31, 2020 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $444,493,288) | $ | 544,429,304 | |||
Foreign currency holdings, at value (cost of $41) | 40 | ||||
Receivable for investments sold | 12,073,805 | ||||
Receivable for capital shares sold | 165,375 | ||||
Dividends and interest receivable | 1,553,624 | ||||
Other assets | 147,507 | ||||
558,369,655 | |||||
Liabilities | |||||
Payable for investments purchased | 13,119,129 | ||||
Payable for capital shares redeemed | 916,199 | ||||
Accrued management fees | 595,650 | ||||
Distribution and service fees payable | 2,435 | ||||
14,633,413 | |||||
Net Assets | $ | 543,736,242 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 501,060,504 | |||
Distributable earnings | 42,675,738 | ||||
$ | 543,736,242 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $461,888,843 | 45,131,736 | $10.23 | ||||||||
I Class, $0.01 Par Value | $73,838,866 | 7,136,932 | $10.35 | ||||||||
A Class, $0.01 Par Value | $5,700,519 | 561,710 | $10.15* | ||||||||
C Class, $0.01 Par Value | $997,098 | 102,625 | $9.72 | ||||||||
R Class, $0.01 Par Value | $1,310,916 | 130,423 | $10.05 |
*Maximum offering price $10.77 (net asset value divided by 0.9425).
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $237,024) | $ | 2,602,931 | |||
Securities lending, net | 87,434 | ||||
Interest | 10,297 | ||||
2,700,662 | |||||
Expenses: | |||||
Management fees | 3,740,654 | ||||
Distribution and service fees: | |||||
A Class | 7,114 | ||||
C Class | 4,871 | ||||
R Class | 3,722 | ||||
Directors' fees and expenses | 8,752 | ||||
Other expenses | 8,619 | ||||
3,773,732 | |||||
Net investment income (loss) | (1,073,070) | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | (2,416,879) | ||||
Foreign currency translation transactions | (168,074) | ||||
(2,584,953) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 8,323,519 | ||||
Translation of assets and liabilities in foreign currencies | 14,483 | ||||
8,338,002 | |||||
Net realized and unrealized gain (loss) | 5,753,049 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 4,679,979 |
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2019 | ||||||||||||||
Increase (Decrease) in Net Assets | May 31, 2020 | November 30, 2019 | ||||||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | (1,073,070) | $ | 1,280,885 | ||||||||||
Net realized gain (loss) | (2,584,953) | (21,239,172) | ||||||||||||
Change in net unrealized appreciation (depreciation) | 8,338,002 | 73,447,110 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 4,679,979 | 53,488,823 | ||||||||||||
Distributions to Shareholders | ||||||||||||||
From earnings: | ||||||||||||||
Investor Class | (4,749,297) | (4,040,078) | ||||||||||||
I Class | (906,124) | (1,741,335) | ||||||||||||
A Class | (42,373) | (235,473) | ||||||||||||
C Class | — | (37,726) | ||||||||||||
R Class | (8,828) | (37,055) | ||||||||||||
Decrease in net assets from distributions | (5,706,622) | (6,091,667) | ||||||||||||
Capital Share Transactions | ||||||||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (42,181,232) | 344,439,095 | ||||||||||||
Net increase (decrease) in net assets | (43,207,875) | 391,836,251 | ||||||||||||
Net Assets | ||||||||||||||
Beginning of period | 586,944,117 | 195,107,866 | ||||||||||||
End of period | $ | 543,736,242 | $ | 586,944,117 | ||||||||||
See Notes to Financial Statements.
13
Notes to Financial Statements |
MAY 31, 2020 (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.
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. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
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.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
15
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.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The 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).
16
The management fee schedule range and the effective annual management fee for each class for the period ended May 31, 2020 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |||||||
Investor Class | 1.200% to 1.550% | 1.40% | ||||||
I Class | 1.000% to 1.350% | 1.20% | ||||||
A Class | 1.200% to 1.550% | 1.40% | ||||||
C Class | 1.200% to 1.550% | 1.40% | ||||||
R Class | 1.200% to 1.550% | 1.40% |
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, 2020 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. 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, 2020 were $348,727,932 and $398,499,138, respectively.
17
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2020 | Year ended November 30, 2019 | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Investor Class/Shares Authorized | 670,000,000 | 670,000,000 | ||||||||||||||||||
Sold | 1,453,115 | $ | 14,565,726 | 1,797,671 | $ | 16,830,632 | ||||||||||||||
Issued in connection with reorganization (Note 9) | — | — | 40,955,922 | 383,355,227 | ||||||||||||||||
Issued in reinvestment of distributions | 424,410 | 4,426,599 | 451,144 | 3,798,635 | ||||||||||||||||
Redeemed | (5,850,737) | (55,342,288) | (8,147,671) | (76,163,088) | ||||||||||||||||
(3,973,212) | (36,349,963) | 35,057,066 | 327,821,406 | |||||||||||||||||
I Class/Shares Authorized | 95,000,000 | 95,000,000 | ||||||||||||||||||
Sold | 865,211 | 8,388,740 | 5,139,468 | 48,841,767 | ||||||||||||||||
Issued in connection with reorganization (Note 9) | — | — | 421,079 | 3,982,794 | ||||||||||||||||
Issued in reinvestment of distributions | 83,972 | 885,061 | 199,378 | 1,694,714 | ||||||||||||||||
Redeemed | (1,449,993) | (13,988,482) | (3,762,721) | (35,422,411) | ||||||||||||||||
(500,810) | (4,714,681) | 1,997,204 | 19,096,864 | |||||||||||||||||
A Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||||||||
Sold | 35,390 | 339,034 | 158,713 | 1,467,674 | ||||||||||||||||
Issued in connection with reorganization (Note 9) | — | — | 177,679 | 1,649,159 | ||||||||||||||||
Issued in reinvestment of distributions | 4,036 | 41,817 | 27,875 | 233,036 | ||||||||||||||||
Redeemed | (80,283) | (757,228) | (641,483) | (5,872,162) | ||||||||||||||||
(40,857) | (376,377) | (277,216) | (2,522,293) | |||||||||||||||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 5,378 | 54,853 | 3,889 | 34,345 | ||||||||||||||||
Issued in connection with reorganization (Note 9) | — | — | 51,598 | 459,815 | ||||||||||||||||
Issued in reinvestment of distributions | — | — | 4,318 | 34,674 | ||||||||||||||||
Redeemed | (11,330) | (103,531) | (110,458) | (984,176) | ||||||||||||||||
(5,952) | (48,678) | (50,653) | (455,342) | |||||||||||||||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 26,920 | 262,253 | 70,350 | 647,214 | ||||||||||||||||
Issued in connection with reorganization (Note 9) | — | — | 15,327 | 140,954 | ||||||||||||||||
Issued in reinvestment of distributions | 859 | 8,819 | 4,470 | 37,055 | ||||||||||||||||
Redeemed | (94,364) | (962,605) | (35,273) | (326,763) | ||||||||||||||||
(66,585) | (691,533) | 54,874 | 498,460 | |||||||||||||||||
Net increase (decrease) | (4,587,416) | $ | (42,181,232) | 36,781,275 | $ | 344,439,095 |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
18
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Investment Securities | ||||||||||||||||||||
Common Stocks | ||||||||||||||||||||
Argentina | $ | 3,260,724 | — | — | ||||||||||||||||
Brazil | 2,288,595 | $ | 2,591,775 | — | ||||||||||||||||
Canada | 6,802,793 | 46,178,270 | — | |||||||||||||||||
China | 7,907,593 | 20,767,367 | — | |||||||||||||||||
Israel | 5,118,842 | — | — | |||||||||||||||||
United Kingdom | 2,518,810 | 66,697,117 | — | |||||||||||||||||
Other Countries | — | 375,673,803 | — | |||||||||||||||||
Temporary Cash Investments | 762,804 | 3,860,811 | — | |||||||||||||||||
$ | 28,660,161 | $ | 515,769,143 | — |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund 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 | $ | 456,248,729 | |||
Gross tax appreciation of investments | $ | 101,891,901 | |||
Gross tax depreciation of investments | (13,711,326) | ||||
Net tax appreciation (depreciation) of investments | $ | 88,180,575 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
19
As of November 30, 2019, the fund had accumulated short-term capital losses of $(43,143,275), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
9. Reorganization
On December 4, 2018, the Board of Directors approved an agreement and plan of reorganization (the reorganization), whereby the net assets of International Discovery Fund, one fund in a series issued by the corporation, were transferred to International Opportunities Fund in exchange for shares of International Opportunities Fund. The purpose of the transaction was to combine two funds with substantially similar investment objectives and strategies. The financial statements and performance history of International Opportunities Fund survived after the reorganization. The reorganization was effective at the close of the NYSE on March 22, 2019.
The reorganization was accomplished by a tax-free exchange of shares. On March 22, 2019, International Discovery Fund exchanged its shares for shares of International Opportunities Fund as follows:
Original Fund/Class | Shares Exchanged | New Fund/Class | Shares Received | ||||||||
International Discovery Fund – Investor Class | 28,522,874 | International Opportunities Fund – Investor Class | 40,955,922 | ||||||||
International Discovery Fund – I Class | 292,253 | International Opportunities Fund – I Class | 421,079 | ||||||||
International Discovery Fund – A Class | 126,350 | International Opportunities Fund – A Class | 177,679 | ||||||||
International Discovery Fund – C Class | 36,343 | International Opportunities Fund – C Class | 51,598 | ||||||||
International Discovery Fund – R Class | 10,698 | International Opportunities Fund – R Class | 15,327 |
The net assets of International Discovery Fund and International Opportunities Fund immediately before the reorganization were $389,587,949 and $193,535,172, respectively. International Discovery Fund's unrealized appreciation of $8,083,173 was combined with that of International Opportunities Fund. Immediately after the reorganization, the combined net assets were $583,123,121.
Assuming the reorganization had been completed on December 1, 2018, the beginning of the annual reporting period, the pro forma results of operations for the period ended November 30, 2019 are as follows:
Net investment income (loss) | $ | 234,506 | |||
Net realized and unrealized gain (loss) | 73,557,788 | ||||
Net increase (decrease) in net assets resulting from operations | $ | 73,792,294 |
Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of International Discovery Fund that have been included in the fund’s Statement of Operations since March 22, 2019.
20
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $10.17 | (0.02) | 0.18 | 0.16 | (0.10) | — | (0.10) | $10.23 | 1.53% | 1.41%(4) | 1.41%(4) | (0.42)%(4) | (0.42)%(4) | 64% | $461,889 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $9.33 | 0.01 | 1.13 | 1.14 | (0.05) | (0.25) | (0.30) | $10.17 | 12.88% | 1.46% | 1.46% | 0.23% | 0.23% | 124% | $499,296 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $11.94 | 0.01 | (1.51) | (1.50) | (0.06) | (1.05) | (1.11) | $9.33 | (13.98)% | 1.48% | 1.62% | 0.07% | (0.07)% | 140% | $131,043 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
I Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $10.29 | (0.01) | 0.19 | 0.18 | (0.12) | — | (0.12) | $10.35 | 1.71% | 1.21%(4) | 1.21%(4) | (0.22)%(4) | (0.22)%(4) | 64% | $73,839 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $9.44 | 0.03 | 1.14 | 1.17 | (0.07) | (0.25) | (0.32) | $10.29 | 13.06% | 1.26% | 1.26% | 0.43% | 0.43% | 124% | $78,575 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $12.07 | 0.04 | (1.54) | (1.50) | (0.08) | (1.05) | (1.13) | $9.44 | (13.81)% | 1.28% | 1.42% | 0.27% | 0.13% | 140% | $53,224 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $10.07 | (0.03) | 0.18 | 0.15 | (0.07) | — | (0.07) | $10.15 | 1.48% | 1.66%(4) | 1.66%(4) | (0.67)%(4) | (0.67)%(4) | 64% | $5,701 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $9.24 | (0.02) | 1.13 | 1.11 | (0.03) | (0.25) | (0.28) | $10.07 | 12.60% | 1.71% | 1.71% | (0.02)% | (0.02)% | 124% | $6,067 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $11.84 | (0.02) | (1.50) | (1.52) | (0.03) | (1.05) | (1.08) | $9.24 | (14.25)% | 1.73% | 1.87% | (0.18)% | (0.32)% | 140% | $8,131 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
C Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $9.61 | (0.07) | 0.18 | 0.11 | — | — | — | $9.72 | 1.14% | 2.41%(4) | 2.41%(4) | (1.42)%(4) | (1.42)%(4) | 64% | $997 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $8.86 | (0.07) | 1.07 | 1.00 | — | (0.25) | (0.25) | $9.61 | 11.77% | 2.46% | 2.46% | (0.77)% | (0.77)% | 124% | $1,044 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $11.44 | (0.10) | (1.43) | (1.53) | — | (1.05) | (1.05) | $8.86 | (14.93)% | 2.48% | 2.62% | (0.93)% | (1.07)% | 140% | $1,411 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $9.96 | (0.05) | 0.18 | 0.13 | (0.04) | — | (0.04) | $10.05 | 1.34% | 1.91%(4) | 1.91%(4) | (0.92)%(4) | (0.92)%(4) | 64% | $1,311 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $9.14 | (0.04) | 1.12 | 1.08 | (0.01) | (0.25) | (0.26) | $9.96 | 12.33% | 1.96% | 1.96% | (0.27)% | (0.27)% | 124% | $1,962 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $11.72 | (0.05) | (1.48) | (1.53) | —(5) | (1.05) | (1.05) | $9.14 | (14.46)% | 1.98% | 2.12% | (0.43)% | (0.57)% | 140% | $1,300 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
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, 2020 (unaudited).
(4)Annualized.
(5)Per-share amount was less than $0.005.
See Notes to Financial Statements.
Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2018 through December 31, 2019. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
24
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 American Century Investments’ website at americancentury.com/proxy 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 americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange
Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on
Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its
fiscal year available on its website at americancentury.com and, upon request, by calling
1-800-345-2021.
25
Notes |
26
Notes |
27
Notes |
28
Notes |
29
Notes |
30
Notes |
31
Notes |
32
![]() | |||||||||||
Contact Us | americancentury.com | ||||||||||
Automated Information Line | 1-800-345-8765 | ||||||||||
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | ||||||||||
Investors Using Advisors | 1-800-378-9878 | ||||||||||
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | ||||||||||
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | ||||||||||
Telecommunications Relay Service for the Deaf | 711 | ||||||||||
American Century 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. | |||||||||||
©2020 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92635 2007 |
![image291.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image291.jpg)
Semiannual Report | |||||
May 31, 2020 | |||||
International Value Fund | |||||
Investor Class (ACEVX) | |||||
I Class (ACVUX) | |||||
A Class (MEQAX) | |||||
C Class (ACCOX) | |||||
R Class (ACVRX) | |||||
R6 Class (ACVDX) |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.
You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Table of Contents |
President’s Letter | |||||
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Liquidity Risk Management Program | |||||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514a141.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/jthomasrev0514a141.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2020. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Pandemic Led to Severe Economic, Market Disruptions
Early in the reporting period, market sentiment was generally upbeat. Dovish central banks, modest inflation, improving economic and corporate earnings data, and U.S.-China trade-policy progress helped boost global growth outlooks. Against this backdrop, key U.S. stock benchmarks rose to new highs in mid-February, and risk assets largely remained in favor throughout the world.
However, beginning in late February, unprecedented social, health care and economic turmoil quickly quashed the optimistic tone. The COVID-19 outbreak rapidly spread throughout the world, halting most economic activity and triggering worldwide recession fears. Adding to the turmoil, global oil prices collapsed amid plunging demand and a price war between Saudi Arabia and Russia. Global stocks and other riskier assets sold off sharply as investors fled to safe-haven investments.
Central banks and federal governments stepped in quickly and aggressively to stabilize global markets and provide financial relief. These extraordinary efforts proved helpful, as markets broadly rebounded in April and May despite discouraging economic and corporate earnings data. In addition, declining coronavirus infection rates and the reopening of many economies helped fuel the recovery. But the rebound wasn’t enough to offset the effects of the earlier sell-off, and global stocks retreated for the six-month period. U.S. stocks fared better than non-U.S. stocks. Among non-U.S. stocks, developed markets generally declined at a greater pace than emerging markets.
As COVID-19 infections are slowing, most economies across the world are reopening. Nevertheless, the return to pre-pandemic economic and market levels will take time and patience. In the meantime, investors likely will face periods of economic and political uncertainty and heightened market volatility. While these influences can be unsettling, they tend to be temporary.
We appreciate your confidence in us during these extraordinary times. We have a long history of helping clients weather unpredictable markets, and we’re confident we will meet today's challenges.
Sincerely,
![image231.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image231.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2020 | |||||
Top Ten Holdings | % of net assets | ||||
iShares MSCI EAFE ETF | 2.8% | ||||
GlaxoSmithKline plc | 2.6% | ||||
Rio Tinto plc | 2.2% | ||||
Royal Dutch Shell plc, B Shares | 2.2% | ||||
Iberdrola SA | 2.0% | ||||
TOTAL SA | 1.9% | ||||
Toyota Motor Corp. | 1.8% | ||||
HSBC Holdings plc | 1.5% | ||||
Zurich Insurance Group AG | 1.5% | ||||
BHP Group plc | 1.5% | ||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 93.2% | ||||
Exchange-Traded Funds | 3.6% | ||||
Total Equity Exposure | 96.8% | ||||
Temporary Cash Investments | 2.3% | ||||
Other Assets and Liabilities | 0.9% | ||||
Investments by Country | % of net assets | ||||
Japan | 25.4% | ||||
United Kingdom | 17.6% | ||||
France | 9.5% | ||||
Germany | 7.6% | ||||
Switzerland | 5.9% | ||||
Australia | 4.6% | ||||
Sweden | 4.3% | ||||
Spain | 3.8% | ||||
Singapore | 2.5% | ||||
Hong Kong | 2.3% | ||||
Finland | 2.3% | ||||
Italy | 2.3% | ||||
Other Countries | 5.1% | ||||
Exchange-Traded Funds* | 3.6% | ||||
Cash and Equivalents** | 3.2% |
*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, 2019 to May 31, 2020.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
4
Beginning Account Value 12/1/19 | Ending Account Value 5/31/20 | Expenses Paid
During Period(1)
12/1/19 - 5/31/20 | Annualized
Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $890.90 | $6.10 | 1.29% | ||||||||||
I Class | $1,000 | $892.70 | $5.16 | 1.09% | ||||||||||
A Class | $1,000 | $890.10 | $7.28 | 1.54% | ||||||||||
C Class | $1,000 | $886.30 | $10.80 | 2.29% | ||||||||||
R Class | $1,000 | $888.10 | $8.45 | 1.79% | ||||||||||
R6 Class | $1,000 | $892.60 | $4.45 | 0.94% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,018.55 | $6.51 | 1.29% | ||||||||||
I Class | $1,000 | $1,019.55 | $5.50 | 1.09% | ||||||||||
A Class | $1,000 | $1,017.30 | $7.77 | 1.54% | ||||||||||
C Class | $1,000 | $1,013.55 | $11.53 | 2.29% | ||||||||||
R Class | $1,000 | $1,016.05 | $9.02 | 1.79% | ||||||||||
R6 Class | $1,000 | $1,020.30 | $4.75 | 0.94% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 366, 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, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 93.2% | ||||||||
Australia — 4.6% | ||||||||
AGL Energy Ltd. | 32,584 | $ | 361,993 | |||||
Aristocrat Leisure Ltd. | 11,047 | 187,262 | ||||||
Australia & New Zealand Banking Group Ltd. | 39,697 | 466,990 | ||||||
BlueScope Steel Ltd. | 8,188 | 59,486 | ||||||
CIMIC Group Ltd. | 8,917 | 148,493 | ||||||
Commonwealth Bank of Australia | 2,579 | 108,267 | ||||||
Fortescue Metals Group Ltd. | 61,373 | 563,132 | ||||||
Santos Ltd. | 9,726 | 34,326 | ||||||
1,929,949 | ||||||||
Austria — 0.5% | ||||||||
ANDRITZ AG(1) | 4,539 | 170,564 | ||||||
Raiffeisen Bank International AG | 2,676 | 49,426 | ||||||
219,990 | ||||||||
Belgium — 0.4% | ||||||||
KBC Group NV | 2,471 | 129,778 | ||||||
Telenet Group Holding NV | 1,333 | 54,750 | ||||||
184,528 | ||||||||
Denmark — 0.7% | ||||||||
Novo Nordisk A/S, B Shares | 1,230 | 80,192 | ||||||
Pandora A/S | 4,514 | 225,385 | ||||||
305,577 | ||||||||
Finland — 2.3% | ||||||||
Fortum Oyj | 4,327 | 83,024 | ||||||
Kone Oyj, B Shares | 7,431 | 498,835 | ||||||
Orion Oyj, Class B | 7,039 | 376,695 | ||||||
958,554 | ||||||||
France — 9.5% | ||||||||
BNP Paribas SA(1) | 15,945 | 575,134 | ||||||
Bouygues SA(1) | 2,177 | 66,892 | ||||||
CNP Assurances(1) | 2,520 | 26,627 | ||||||
Eiffage SA(1) | 1,866 | 170,709 | ||||||
L'Oreal SA | 1,177 | 343,672 | ||||||
Legrand SA | 6,095 | 416,391 | ||||||
Peugeot SA(1) | 26,051 | 372,884 | ||||||
Safran SA(1) | 2,148 | 206,083 | ||||||
Sanofi | 3,200 | 312,082 | ||||||
Schneider Electric SE | 1,900 | 189,548 | ||||||
Societe Generale SA(1) | 4,800 | 71,034 | ||||||
TOTAL SA | 21,946 | 825,137 | ||||||
Valeo SA | 13,560 | 335,517 | ||||||
Vinci SA | 1,259 | 116,738 | ||||||
4,028,448 | ||||||||
Germany — 7.6% | ||||||||
adidas AG(1) | 556 | 145,801 | ||||||
Allianz SE | 3,282 | 595,528 |
6
Shares | Value | |||||||
Aroundtown SA | 8,717 | $ | 47,929 | |||||
Bayer AG | 1,746 | 116,628 | ||||||
Brenntag AG | 4,622 | 242,386 | ||||||
Commerzbank AG(1) | 11,926 | 46,524 | ||||||
Continental AG | 4,071 | 398,288 | ||||||
Deutsche Post AG(1) | 3,700 | 114,622 | ||||||
GEA Group AG | 16,969 | 503,674 | ||||||
Hannover Rueck SE | 708 | 113,599 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG | 1,404 | 318,761 | ||||||
Porsche Automobil Holding SE, Preference Shares | 3,504 | 189,459 | ||||||
RWE AG | 3,761 | 123,909 | ||||||
Siemens AG | 2,629 | 286,966 | ||||||
3,244,074 | ||||||||
Hong Kong — 2.3% | ||||||||
BOC Hong Kong Holdings Ltd. | 26,500 | 74,380 | ||||||
Galaxy Entertainment Group Ltd. | 28,000 | 191,007 | ||||||
Hang Seng Bank Ltd. | 17,100 | 260,867 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 2,000 | 69,977 | ||||||
Sands China Ltd. | 98,800 | 388,523 | ||||||
984,754 | ||||||||
Ireland — 0.4% | ||||||||
Bank of Ireland Group plc(1) | 98,224 | 177,558 | ||||||
Italy — 2.3% | ||||||||
Enel SpA | 46,864 | 360,623 | ||||||
Ferrari NV | 2,942 | 498,308 | ||||||
Fiat Chrysler Automobiles NV(1) | 11,200 | 99,330 | ||||||
958,261 | ||||||||
Japan — 25.4% | ||||||||
ABC-Mart, Inc. | 5,500 | 334,518 | ||||||
Amada Co. Ltd. | 43,300 | 386,654 | ||||||
Astellas Pharma, Inc. | 27,000 | 479,971 | ||||||
Bandai Namco Holdings, Inc. | 2,300 | 128,104 | ||||||
Brother Industries Ltd. | 25,000 | 471,486 | ||||||
Chugai Pharmaceutical Co. Ltd. | 800 | 118,060 | ||||||
Honda Motor Co. Ltd. | 7,600 | 196,611 | ||||||
Hoya Corp. | 800 | 75,090 | ||||||
ITOCHU Corp. | 22,900 | 491,502 | ||||||
KDDI Corp. | 17,200 | 500,856 | ||||||
Mitsubishi Chemical Holdings Corp. | 16,300 | 96,052 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 79,300 | 327,247 | ||||||
Nexon Co. Ltd. | 10,000 | 208,498 | ||||||
Nintendo Co. Ltd. | 1,000 | 404,156 | ||||||
Nitori Holdings Co. Ltd. | 2,300 | 417,167 | ||||||
NTT DOCOMO, Inc. | 22,300 | 609,871 | ||||||
Recruit Holdings Co. Ltd. | 4,200 | 144,909 | ||||||
Santen Pharmaceutical Co. Ltd. | 9,000 | 166,273 | ||||||
Sekisui House Ltd. | 25,800 | 491,889 | ||||||
Shin-Etsu Chemical Co. Ltd. | 3,400 | 398,961 | ||||||
Shionogi & Co. Ltd. | 8,100 | 478,605 | ||||||
Showa Denko KK | 4,000 | 95,740 | ||||||
Softbank Corp. | 5,700 | 72,261 | ||||||
SoftBank Group Corp. | 7,800 | 350,340 |
7
Shares | Value | |||||||
Sony Corp. | 5,700 | $ | 363,988 | |||||
Sumitomo Mitsui Financial Group, Inc. | 12,800 | 370,833 | ||||||
Sundrug Co. Ltd. | 3,800 | 128,030 | ||||||
Takeda Pharmaceutical Co. Ltd. | 6,800 | 264,776 | ||||||
Toho Gas Co. Ltd. | 2,200 | 108,228 | ||||||
Tokyo Electron Ltd. | 2,100 | 419,805 | ||||||
Toyota Motor Corp. | 12,300 | 771,743 | ||||||
Trend Micro, Inc. | 3,000 | 165,021 | ||||||
Tsuruha Holdings, Inc. | 2,100 | 310,352 | ||||||
Welcia Holdings Co. Ltd. | 5,100 | 427,467 | ||||||
10,775,064 | ||||||||
Netherlands — 1.0% | ||||||||
Koninklijke DSM NV | 1,017 | 130,525 | ||||||
NN Group NV | 9,747 | 302,124 | ||||||
432,649 | ||||||||
New Zealand — 1.5% | ||||||||
a2 Milk Co. Ltd.(1) | 31,706 | 374,830 | ||||||
Meridian Energy Ltd. | 91,071 | 269,951 | ||||||
644,781 | ||||||||
Norway — 0.6% | ||||||||
Aker BP ASA | 14,304 | 231,306 | ||||||
Equinor ASA | 1,818 | 26,541 | ||||||
257,847 | ||||||||
Singapore — 2.5% | ||||||||
DBS Group Holdings Ltd. | 11,000 | 152,152 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 57,600 | 350,218 | ||||||
Singapore Telecommunications Ltd. | 117,600 | 207,937 | ||||||
United Overseas Bank Ltd. | 24,400 | 337,977 | ||||||
1,048,284 | ||||||||
Spain — 3.8% | ||||||||
Banco Bilbao Vizcaya Argentaria SA | 133,477 | 416,689 | ||||||
Banco Santander SA | 11,123 | 25,307 | ||||||
Iberdrola SA | 80,117 | 864,709 | ||||||
Industria de Diseno Textil SA | 5,862 | 163,865 | ||||||
Mapfre SA | 37,262 | 65,748 | ||||||
Telefonica SA | 19,344 | 91,270 | ||||||
1,627,588 | ||||||||
Sweden — 4.3% | ||||||||
Hennes & Mauritz AB, B Shares | 27,847 | 422,659 | ||||||
Industrivarden AB, C Shares(1) | 10,731 | 239,563 | ||||||
Investor AB, B Shares | 8,291 | 442,988 | ||||||
Kinnevik AB, B Shares | 21,900 | 553,553 | ||||||
Lundin Energy AB | 6,838 | 165,685 | ||||||
1,824,448 | ||||||||
Switzerland — 5.9% | ||||||||
Geberit AG | 885 | 431,595 | ||||||
Kuehne + Nagel International AG(1) | 3,152 | 455,582 | ||||||
Novartis AG | 2,346 | 203,374 | ||||||
Partners Group Holding AG | 330 | 274,215 | ||||||
Roche Holding AG | 1,126 | 390,861 | ||||||
UBS Group AG(1) | 9,016 | 97,152 |
8
Shares | Value | |||||||
Zurich Insurance Group AG | 1,992 | $ | 644,495 | |||||
2,497,274 | ||||||||
United Kingdom — 17.6% | ||||||||
3i Group plc | 22,162 | 227,102 | ||||||
Barclays plc | 86,558 | 124,044 | ||||||
BHP Group plc | 32,623 | 639,791 | ||||||
BP plc | 83,276 | 316,223 | ||||||
British American Tobacco plc | 2,806 | 110,969 | ||||||
Burberry Group plc | 5,238 | 97,284 | ||||||
Centrica plc | 346,353 | 157,056 | ||||||
Evraz plc | 101,627 | 357,263 | ||||||
Ferguson plc | 5,259 | 415,389 | ||||||
GlaxoSmithKline plc | 52,676 | 1,090,905 | ||||||
HSBC Holdings plc | 143,048 | 657,837 | ||||||
JD Sports Fashion plc | 11,130 | 90,882 | ||||||
Legal & General Group plc | 176,759 | 436,634 | ||||||
London Stock Exchange Group plc | 414 | 41,219 | ||||||
M&G plc | 28,109 | 48,842 | ||||||
Meggitt plc | 18,483 | 63,572 | ||||||
Rio Tinto plc | 17,743 | 951,040 | ||||||
Rolls-Royce Holdings plc(1) | 12,999 | 43,860 | ||||||
Royal Dutch Shell plc, B Shares | 61,158 | 933,250 | ||||||
Sage Group plc (The) | 17,900 | 153,291 | ||||||
St. James's Place plc | 16,926 | 193,034 | ||||||
Vodafone Group plc | 208,682 | 344,458 | ||||||
7,493,945 | ||||||||
TOTAL COMMON STOCKS
(Cost $44,023,680) | 39,593,573 | |||||||
EXCHANGE-TRADED FUNDS — 3.6% | ||||||||
iShares MSCI EAFE ETF | 19,595 | 1,168,646 | ||||||
iShares MSCI EAFE Value ETF | 5,500 | 215,380 | ||||||
iShares MSCI Japan ETF | 2,950 | 163,459 | ||||||
TOTAL EXCHANGE-TRADED FUNDS
(Cost $1,636,470) | 1,547,485 | |||||||
TEMPORARY CASH INVESTMENTS — 2.3% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.25%, 5/15/25 - 2/15/27, valued at $990,997), in a joint trading account at 0.01%, dated 5/29/20, due 6/1/20 (Delivery value $970,926) | 970,925 | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 2,237 | 2,237 | ||||||
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $973,162) | 973,162 | |||||||
TOTAL INVESTMENT SECURITIES — 99.1%
(Cost $46,633,312) | 42,114,220 | |||||||
OTHER ASSETS AND LIABILITIES — 0.9% | 373,682 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 42,487,902 |
9
MARKET SECTOR DIVERSIFICATION | ||||||||
(as a % of net assets) | ||||||||
Financials | 22.2% | |||||||
Consumer Discretionary | 15.2% | |||||||
Industrials | 13.4% | |||||||
Health Care | 9.8% | |||||||
Materials | 7.5% | |||||||
Communication Services | 6.6% | |||||||
Energy | 5.9% | |||||||
Utilities | 5.6% | |||||||
Consumer Staples | 4.0% | |||||||
Information Technology | 2.9% | |||||||
Real Estate | 0.1% | |||||||
Exchange-Traded Funds | 3.6% | |||||||
Cash and Equivalents* | 3.2% |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS |
(1)Non-income producing.
See Notes to Financial Statements.
10
Statement of Assets and Liabilities |
MAY 31, 2020 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $46,633,312) | $ | 42,114,220 | |||
Foreign currency holdings, at value (cost of $4,126) | 4,123 | ||||
Receivable for capital shares sold | 114,590 | ||||
Dividends and interest receivable | 369,705 | ||||
42,602,638 | |||||
Liabilities | |||||
Payable for capital shares redeemed | 73,239 | ||||
Accrued management fees | 39,373 | ||||
Distribution and service fees payable | 2,124 | ||||
114,736 | |||||
Net Assets | $ | 42,487,902 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 54,319,371 | |||
Distributable earnings | (11,831,469) | ||||
$ | 42,487,902 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $10,787,061 | 1,651,649 | $6.53 | ||||||||
I Class, $0.01 Par Value | $20,719,923 | 3,179,751 | $6.52 | ||||||||
A Class, $0.01 Par Value | $5,449,727 | 828,689 | $6.58* | ||||||||
C Class, $0.01 Par Value | $908,734 | 138,460 | $6.56 | ||||||||
R Class, $0.01 Par Value | $700,513 | 106,884 | $6.55 | ||||||||
R6 Class, $0.01 Par Value | $3,921,944 | 602,391 | $6.51 |
*Maximum offering price $6.98 (net asset value divided by 0.9425).
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $67,494) | $ | 739,971 | |||
Securities lending, net | 3,040 | ||||
Interest | 2,699 | ||||
745,710 | |||||
Expenses: | |||||
Management fees | 243,833 | ||||
Distribution and service fees: | |||||
A Class | 7,184 | ||||
C Class | 5,580 | ||||
R Class | 1,631 | ||||
Directors' fees and expenses | 682 | ||||
Other expenses | 575 | ||||
259,485 | |||||
Fees waived(1) | (2,108) | ||||
257,377 | |||||
Net investment income (loss) | 488,333 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | (331,297) | ||||
Foreign currency translation transactions | (10,705) | ||||
(342,002) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | (5,284,526) | ||||
Translation of assets and liabilities in foreign currencies | 4,621 | ||||
(5,279,905) | |||||
Net realized and unrealized gain (loss) | (5,621,907) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (5,133,574) |
(1)Amount consists of $539, $941, $287, $56, $33 and $252 for Investor Class, I Class, A Class, C Class, R Class and R6 Class, respectively.
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2019 | ||||||||||||||
Increase (Decrease) in Net Assets | May 31, 2020 | November 30, 2019 | ||||||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 488,333 | $ | 1,307,907 | ||||||||||
Net realized gain (loss) | (342,002) | (3,173,890) | ||||||||||||
Change in net unrealized appreciation (depreciation) | (5,279,905) | 3,143,711 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | (5,133,574) | 1,277,728 | ||||||||||||
Distributions to Shareholders | ||||||||||||||
From earnings: | ||||||||||||||
Investor Class | (330,222) | (403,529) | ||||||||||||
I Class | (669,104) | (357,536) | ||||||||||||
A Class | (164,627) | (258,329) | ||||||||||||
C Class | (17,023) | (49,480) | ||||||||||||
R Class | (14,529) | (19,023) | ||||||||||||
R6 Class | (218,419) | (577,763) | ||||||||||||
Decrease in net assets from distributions | (1,413,924) | (1,665,660) | ||||||||||||
Capital Share Transactions | ||||||||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 5,898,728 | (1,950,464) | ||||||||||||
Net increase (decrease) in net assets | (648,770) | (2,338,396) | ||||||||||||
Net Assets | ||||||||||||||
Beginning of period | 43,136,672 | 45,475,068 | ||||||||||||
End of period | $ | 42,487,902 | $ | 43,136,672 | ||||||||||
See Notes to Financial Statements.
13
Notes to Financial Statements |
MAY 31, 2020 (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
14
Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
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.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
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, 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 ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The 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. During the period ended May 31, 2020, the investment advisor agreed to waive 0.01% of the fund's management fee. The investment advisor expects this waiver to continue until March 31, 2021 and cannot terminate it prior to such date without the approval of the Board of Directors.
16
The management fee schedule range and the effective annual management fee before and after waiver for each class for the period ended May 31, 2020 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |||||||||||||
Before Waiver | After Waiver | |||||||||||||
Investor Class | 1.100% to 1.300% | 1.29% | 1.28% | |||||||||||
I Class | 0.900% to 1.100% | 1.09% | 1.08% | |||||||||||
A Class | 1.100% to 1.300% | 1.29% | 1.28% | |||||||||||
C Class | 1.100% to 1.300% | 1.29% | 1.28% | |||||||||||
R Class | 1.100% to 1.300% | 1.29% | 1.28% | |||||||||||
R6 Class | 0.750% to 0.950% | 0.94% | 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, 2020 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases were $368 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, 2020 were $18,211,578 and $13,415,612, respectively.
17
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2020 | Year ended November 30, 2019 | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Investor Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||||||||
Sold | 814,428 | $ | 6,130,386 | 150,004 | $ | 1,109,245 | ||||||||||||||
Issued in reinvestment of distributions | 46,745 | 321,514 | 53,047 | 390,556 | ||||||||||||||||
Redeemed | (416,332) | (2,870,732) | (441,896) | (3,294,374) | ||||||||||||||||
444,841 | 3,581,168 | (238,845) | (1,794,573) | |||||||||||||||||
I Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||||||||
Sold | 790,818 | 5,213,279 | 1,802,912 | 13,322,365 | ||||||||||||||||
Issued in reinvestment of distributions | 96,273 | 669,104 | 48,412 | 357,536 | ||||||||||||||||
Redeemed | (214,016) | (1,474,379) | (320,303) | (2,383,740) | ||||||||||||||||
673,075 | 4,408,004 | 1,531,021 | 11,296,161 | |||||||||||||||||
A Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 26,881 | 189,127 | 29,026 | 218,600 | ||||||||||||||||
Issued in reinvestment of distributions | 23,249 | 164,079 | 34,759 | 257,913 | ||||||||||||||||
Redeemed | (81,208) | (604,715) | (206,057) | (1,544,282) | ||||||||||||||||
(31,078) | (251,509) | (142,272) | (1,067,769) | |||||||||||||||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 6,137 | 45,701 | 11,743 | 88,541 | ||||||||||||||||
Issued in reinvestment of distributions | 2,374 | 16,902 | 6,595 | 48,966 | ||||||||||||||||
Redeemed | (56,485) | (388,004) | (126,994) | (941,805) | ||||||||||||||||
(47,974) | (325,401) | (108,656) | (804,298) | |||||||||||||||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||||||||
Sold | 38,498 | 270,868 | 15,219 | 112,965 | ||||||||||||||||
Issued in reinvestment of distributions | 2,089 | 14,495 | 2,572 | 18,972 | ||||||||||||||||
Redeemed | (9,821) | (59,184) | (30,281) | (231,260) | ||||||||||||||||
30,766 | 226,179 | (12,490) | (99,323) | |||||||||||||||||
R6 Class/Shares Authorized | 45,000,000 | 45,000,000 | ||||||||||||||||||
Sold | 50,368 | 344,183 | 510,546 | 3,776,617 | ||||||||||||||||
Issued in reinvestment of distributions | 31,120 | 218,419 | 79,224 | 577,763 | ||||||||||||||||
Redeemed | (338,411) | (2,302,315) | (1,891,164) | (13,835,042) | ||||||||||||||||
(256,923) | (1,739,713) | (1,301,394) | (9,480,662) | |||||||||||||||||
Net increase (decrease) | 812,707 | $ | 5,898,728 | (272,636) | $ | (1,950,464) |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
18
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||
Investment Securities | |||||||||||
Common Stocks | — | $ | 39,593,573 | — | |||||||
Exchange-Traded Funds | $ | 1,547,485 | — | — | |||||||
Temporary Cash Investments | 2,237 | 970,925 | — | ||||||||
$ | 1,549,722 | $ | 40,564,498 | — |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund 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 | $ | 46,782,094 | |||
Gross tax appreciation of investments | $ | 2,292,052 | |||
Gross tax depreciation of investments | (6,959,926) | ||||
Net tax appreciation (depreciation) of investments | $ | (4,667,874) |
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, 2019, the fund had accumulated short-term capital losses of $(4,712,022) and accumulated long-term capital losses of $(2,473,038), 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.
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 | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investor Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $7.57 | 0.08 | (0.89) | (0.81) | (0.23) | $6.53 | (10.91)% | 1.29%(4) | 1.30%(4) | 2.25%(4) | 2.24%(4) | 32% | $10,787 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $7.61 | 0.23 | 0.02 | 0.25 | (0.29) | $7.57 | 3.41% | 1.34% | 1.34% | 3.13% | 3.13% | 87% | $9,136 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $8.96 | 0.21 | (1.27) | (1.06) | (0.29) | $7.61 | (12.25)% | 1.30% | 1.30% | 2.56% | 2.56% | 80% | $11,008 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $7.40 | 0.21 | 1.51 | 1.72 | (0.16) | $8.96 | 23.59% | 1.30% | 1.30% | 2.47% | 2.47% | 101% | $14,398 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | $7.83 | 0.20 | (0.45) | (0.25) | (0.18) | $7.40 | (3.15)% | 1.31% | 1.31% | 2.86% | 2.86% | 76% | $13,810 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $8.91 | 0.22 | (0.97) | (0.75) | (0.33) | $7.83 | (8.56)% | 1.31% | 1.31% | 2.70% | 2.70% | 77% | $20,945 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
I Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $7.57 | 0.08 | (0.88) | (0.80) | (0.25) | $6.52 | (10.73)% | 1.09%(4) | 1.10%(4) | 2.45%(4) | 2.44%(4) | 32% | $20,720 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $7.62 | 0.25 | 0.01 | 0.26 | (0.31) | $7.57 | 3.53% | 1.14% | 1.14% | 3.33% | 3.33% | 87% | $18,981 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $8.97 | 0.22 | (1.26) | (1.04) | (0.31) | $7.62 | (12.05)% | 1.10% | 1.10% | 2.76% | 2.76% | 80% | $7,434 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $7.41 | 0.23 | 1.51 | 1.74 | (0.18) | $8.97 | 23.86% | 1.10% | 1.10% | 2.67% | 2.67% | 101% | $4,173 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | $7.84 | 0.22 | (0.45) | (0.23) | (0.20) | $7.41 | (2.99)% | 1.11% | 1.11% | 3.06% | 3.06% | 76% | $7,300 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $8.92 | 0.28 | (1.01) | (0.73) | (0.35) | $7.84 | (8.37)% | 1.11% | 1.11% | 2.90% | 2.90% | 77% | $7,798 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $7.60 | 0.07 | (0.89) | (0.82) | (0.20) | $6.58 | (10.99)% | 1.54%(4) | 1.55%(4) | 2.00%(4) | 1.99%(4) | 32% | $5,450 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $7.64 | 0.22 | 0.01 | 0.23 | (0.27) | $7.60 | 3.08% | 1.59% | 1.59% | 2.88% | 2.88% | 87% | $6,532 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $8.99 | 0.19 | (1.27) | (1.08) | (0.27) | $7.64 | (12.43)% | 1.55% | 1.55% | 2.31% | 2.31% | 80% | $7,651 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $7.41 | 0.17 | 1.55 | 1.72 | (0.14) | $8.99 | 23.45% | 1.55% | 1.55% | 2.22% | 2.22% | 101% | $9,857 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | $7.85 | 0.18 | (0.45) | (0.27) | (0.17) | $7.41 | (3.46)% | 1.56% | 1.56% | 2.61% | 2.61% | 76% | $11,029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $8.93 | 0.20 | (0.97) | (0.77) | (0.31) | $7.85 | (8.77)% | 1.56% | 1.56% | 2.45% | 2.45% | 77% | $14,838 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
C Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $7.51 | 0.04 | (0.89) | (0.85) | (0.10) | $6.56 | (11.37)% | 2.29%(4) | 2.30%(4) | 1.25%(4) | 1.24%(4) | 32% | $909 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $7.54 | 0.16 | 0.01 | 0.17 | (0.20) | $7.51 | 2.29% | 2.34% | 2.34% | 2.13% | 2.13% | 87% | $1,400 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $8.87 | 0.13 | (1.26) | (1.13) | (0.20) | $7.54 | (13.04)% | 2.30% | 2.30% | 1.56% | 1.56% | 80% | $2,224 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $7.33 | 0.12 | 1.51 | 1.63 | (0.09) | $8.87 | 22.41% | 2.30% | 2.30% | 1.47% | 1.47% | 101% | $4,225 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | $7.78 | 0.13 | (0.46) | (0.33) | (0.12) | $7.33 | (4.21)% | 2.31% | 2.31% | 1.86% | 1.86% | 76% | $3,774 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $8.85 | 0.13 | (0.95) | (0.82) | (0.25) | $7.78 | (9.39)% | 2.31% | 2.31% | 1.70% | 1.70% | 77% | $3,502 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
R Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $7.55 | 0.06 | (0.89) | (0.83) | (0.17) | $6.55 | (11.19)% | 1.79%(4) | 1.80%(4) | 1.75%(4) | 1.74%(4) | 32% | $701 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $7.58 | 0.19 | 0.02 | 0.21 | (0.24) | $7.55 | 2.91% | 1.84% | 1.84% | 2.63% | 2.63% | 87% | $575 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $8.93 | 0.18 | (1.29) | (1.11) | (0.24) | $7.58 | (12.74)% | 1.80% | 1.80% | 2.06% | 2.06% | 80% | $672 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $7.36 | 0.16 | 1.52 | 1.68 | (0.11) | $8.93 | 23.09% | 1.80% | 1.80% | 1.97% | 1.97% | 101% | $537 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | $7.80 | 0.18 | (0.47) | (0.29) | (0.15) | $7.36 | (3.68)% | 1.81% | 1.81% | 2.36% | 2.36% | 76% | $448 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $8.87 | 0.18 | (0.96) | (0.78) | (0.29) | $7.80 | (8.95)% | 1.81% | 1.81% | 2.20% | 2.20% | 77% | $387 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
R6 Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $7.58 | 0.08 | (0.88) | (0.80) | (0.27) | $6.51 | (10.74)% | 0.94%(4) | 0.95%(4) | 2.60%(4) | 2.59%(4) | 32% | $3,922 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $7.63 | 0.26 | 0.01 | 0.27 | (0.32) | $7.58 | 3.72% | 0.99% | 0.99% | 3.48% | 3.48% | 87% | $6,513 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $8.98 | 0.26 | (1.29) | (1.03) | (0.32) | $7.63 | (11.91)% | 0.95% | 0.95% | 2.91% | 2.91% | 80% | $16,485 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $7.42 | 0.23 | 1.52 | 1.75 | (0.19) | $8.98 | 24.06% | 0.95% | 0.95% | 2.82% | 2.82% | 101% | $46,833 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | $7.85 | 0.23 | (0.45) | (0.22) | (0.21) | $7.42 | (2.87)% | 0.96% | 0.96% | 3.21% | 3.21% | 76% | $23,378 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $8.93 | 0.23 | (0.95) | (0.72) | (0.36) | $7.85 | (8.22)% | 0.96% | 0.96% | 3.05% | 3.05% | 77% | $31,418 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2020 (unaudited).
(4)Annualized.
See Notes to Financial Statements.
Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2018 through December 31, 2019. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
24
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 American Century Investments’ website at americancentury.com/proxy 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 americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange
Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on
Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its
fiscal year available on its website at americancentury.com and, upon request, by calling
1-800-345-2021.
25
Notes |
26
Notes |
27
Notes |
28
Notes |
29
Notes |
30
Notes |
31
Notes |
32
![]() | |||||||||||
Contact Us | americancentury.com | ||||||||||
Automated Information Line | 1-800-345-8765 | ||||||||||
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | ||||||||||
Investors Using Advisors | 1-800-378-9878 | ||||||||||
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | ||||||||||
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | ||||||||||
Telecommunications Relay Service for the Deaf | 711 | ||||||||||
American Century 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. | |||||||||||
©2020 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92632 2007 |
![image291.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image291.jpg)
Semiannual Report | |||||
May 31, 2020 | |||||
Non-U.S. Intrinsic Value Fund | |||||
Investor Class (ANTUX) | |||||
I Class (ANVHX) | |||||
A Class (ANVLX) | |||||
R Class (ANVRX) | |||||
R6 Class (ANVMX) | |||||
G Class (ANTGX) |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.
You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Table of Contents |
President’s Letter | |||||
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Liquidity Risk Management Program | |||||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514a141.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/jthomasrev0514a141.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2020. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Pandemic Led to Severe Economic, Market Disruptions
Early in the reporting period, market sentiment was generally upbeat. Dovish central banks, modest inflation, improving economic and corporate earnings data, and U.S.-China trade-policy progress helped boost global growth outlooks. Against this backdrop, key U.S. stock benchmarks rose to new highs in mid-February, and risk assets largely remained in favor throughout the world.
However, beginning in late February, unprecedented social, health care and economic turmoil quickly quashed the optimistic tone. The COVID-19 outbreak rapidly spread throughout the world, halting most economic activity and triggering worldwide recession fears. Adding to the turmoil, global oil prices collapsed amid plunging demand and a price war between Saudi Arabia and Russia. Global stocks and other riskier assets sold off sharply as investors fled to safe-haven investments.
Central banks and federal governments stepped in quickly and aggressively to stabilize global markets and provide financial relief. These extraordinary efforts proved helpful, as markets broadly rebounded in April and May despite discouraging economic and corporate earnings data. In addition, declining coronavirus infection rates and the reopening of many economies helped fuel the recovery. But the rebound wasn’t enough to offset the effects of the earlier sell-off, and global stocks retreated for the six-month period. U.S. stocks fared better than non-U.S. stocks. Among non-U.S. stocks, developed markets generally declined at a greater pace than emerging markets.
As COVID-19 infections are slowing, most economies across the world are reopening. Nevertheless, the return to pre-pandemic economic and market levels will take time and patience. In the meantime, investors likely will face periods of economic and political uncertainty and heightened market volatility. While these influences can be unsettling, they tend to be temporary.
We appreciate your confidence in us during these extraordinary times. We have a long history of helping clients weather unpredictable markets, and we’re confident we will meet today's challenges.
Sincerely,
![image231.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image231.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2020 | |||||
Top Ten Holdings | % of net assets | ||||
Sanofi* | 5.5% | ||||
GlaxoSmithKline plc | 5.4% | ||||
Kingfisher plc | 4.3% | ||||
Credit Suisse Group AG | 3.6% | ||||
Barclays plc | 3.6% | ||||
Mitsubishi UFJ Financial Group, Inc. | 3.5% | ||||
TOTAL SA | 3.4% | ||||
BNP Paribas SA | 3.4% | ||||
Surgutneftegas PJSC, Preference Shares | 3.4% | ||||
Daimler AG | 3.0% | ||||
*Includes shares traded on all exchanges. | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 97.1% | ||||
Exchange-Traded Funds | 1.7% | ||||
Total Equity Exposure | 98.8% | ||||
Temporary Cash Investments | 0.5% | ||||
Other Assets and Liabilities | 0.7% | ||||
Investments by Country | % of net assets | ||||
United Kingdom | 20.0% | ||||
Japan | 18.1% | ||||
France | 16.2% | ||||
China | 7.9% | ||||
Germany | 6.3% | ||||
South Korea | 6.0% | ||||
Russia | 5.8% | ||||
Switzerland | 5.8% | ||||
Italy | 4.2% | ||||
Netherlands | 2.2% | ||||
Other Countries | 4.6% | ||||
Exchange-Traded Funds | 1.7% | ||||
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, 2019 to May 31, 2020 (except as noted).
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
4
Beginning Account Value 12/1/19 | Ending Account Value 5/31/20 | Expenses Paid During Period(1) 12/1/19 - 5/31/20 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $730.10 | $5.67 | 1.31% | ||||||||||
I Class | $1,000 | $741.50(2) | $4.78(3) | 1.11% | ||||||||||
A Class | $1,000 | $740.20(2) | $6.71(3) | 1.56% | ||||||||||
R Class | $1,000 | $739.10(2) | $7.78(3) | 1.81% | ||||||||||
R6 Class | $1,000 | $742.40(2) | $4.14(3) | 0.96% | ||||||||||
G Class | $1,000 | $734.20 | $0.04 | 0.01% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,018.45 | $6.61 | 1.31% | ||||||||||
I Class | $1,000 | $1,019.45(4) | $5.60(4) | 1.11% | ||||||||||
A Class | $1,000 | $1,017.20(4) | $7.87(4) | 1.56% | ||||||||||
R Class | $1,000 | $1,015.95(4) | $9.12(4) | 1.81% | ||||||||||
R6 Class | $1,000 | $1,020.20(4) | $4.85(4) | 0.96% | ||||||||||
G Class | $1,000 | $1,024.95 | $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 183, the number of days in the most recent fiscal half-year, divided by 366, 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.
(2)Ending account value based on actual return from December 3, 2019 (commencement of sale) through May 31, 2020.
(3)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 181, the number of days in the period from December 3, 2019 (commencement of sale) through May 31, 2020, divided by 366, to reflect the period. Had the class been available for the full period, the expenses paid during the period would have been higher.
(4)Ending account value and expenses paid during the period assumes the class had been available throughout the entire period and are calculated using the class's annualized expense ratio listed in the table above.
5
Schedule of Investments |
MAY 31, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 97.1% | ||||||||
Belgium — 0.9% | ||||||||
Ontex Group NV | 181,850 | $ | 2,881,573 | |||||
Brazil — 0.7% | ||||||||
Banco Bradesco SA | 625,460 | 2,059,354 | ||||||
China — 7.9% | ||||||||
Baidu, Inc., ADR(1) | 78,575 | 8,372,166 | ||||||
CNOOC Ltd. | 7,375,000 | 8,341,243 | ||||||
CNOOC Ltd., ADR | 7,219 | 823,832 | ||||||
PetroChina Co. Ltd., H Shares | 19,058,000 | 6,612,832 | ||||||
24,150,073 | ||||||||
France — 16.2% | ||||||||
Atos SE(1) | 49,737 | 3,769,151 | ||||||
BNP Paribas SA(1) | 285,301 | 10,290,773 | ||||||
Publicis Groupe SA | 181,570 | 5,165,422 | ||||||
Sanofi | 163,312 | 15,927,103 | ||||||
Sanofi, ADR | 19,994 | 981,905 | ||||||
Societe Generale SA(1) | 211,670 | 3,132,453 | ||||||
TOTAL SA | 278,741 | 10,480,248 | ||||||
49,747,055 | ||||||||
Germany — 6.3% | ||||||||
Bayerische Motoren Werke AG | 98,244 | 5,719,332 | ||||||
Commerzbank AG(1) | 1,124,686 | 4,387,448 | ||||||
Daimler AG | 252,835 | 9,343,356 | ||||||
19,450,136 | ||||||||
Italy — 4.2% | ||||||||
Eni SpA | 812,053 | 7,366,115 | ||||||
Saras SpA(1) | 3,957,304 | 3,552,995 | ||||||
UniCredit SpA(1) | 235,146 | 2,015,174 | ||||||
12,934,284 | ||||||||
Japan — 18.1% | ||||||||
Alfresa Holdings Corp. | 267,500 | 5,398,467 | ||||||
Haseko Corp. | 290,400 | 3,541,723 | ||||||
Hazama Ando Corp. | 248,300 | 1,607,712 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 2,611,900 | 10,778,528 | ||||||
Mizuho Financial Group, Inc. | 7,109,600 | 8,882,709 | ||||||
Nippon Television Holdings, Inc. | 468,000 | 5,406,016 | ||||||
Nissan Motor Co. Ltd. | 1,862,300 | 6,936,701 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 264,200 | 7,654,229 | ||||||
Token Corp. | 23,000 | 1,577,913 | ||||||
TV Asahi Holdings Corp. | 154,000 | 2,419,974 | ||||||
Yamazen Corp. | 142,700 | 1,236,051 | ||||||
55,440,023 | ||||||||
Mexico — 1.8% | ||||||||
Fibra Uno Administracion SA de CV | 7,142,164 | 5,478,735 | ||||||
Netherlands — 2.2% | ||||||||
Aegon NV | 1,182,344 | 3,178,289 |
6
Shares | Value | |||||||
Randstad NV | 56,602 | $ | 2,382,541 | |||||
Signify NV(1) | 57,175 | 1,226,220 | ||||||
6,787,050 | ||||||||
Russia — 5.8% | ||||||||
Gazprom PJSC | 2,571,451 | 7,337,390 | ||||||
Surgutneftegas PJSC, Preference Shares | 20,428,219 | 10,287,415 | ||||||
17,624,805 | ||||||||
South Korea — 6.0% | ||||||||
Hana Financial Group, Inc. | 34,426 | 830,357 | ||||||
Hyundai Mobis Co. Ltd. | 45,905 | 7,365,293 | ||||||
Hyundai Motor Co. | 79,602 | 6,320,410 | ||||||
Kia Motors Corp. | 139,995 | 3,885,339 | ||||||
18,401,399 | ||||||||
Spain — 1.2% | ||||||||
Atresmedia Corp. de Medios de Comunicacion SA | 401,629 | 1,077,392 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 806,185 | 2,516,749 | ||||||
3,594,141 | ||||||||
Switzerland — 5.8% | ||||||||
Credit Suisse Group AG | 1,211,326 | 11,125,361 | ||||||
UBS Group AG(1) | 602,194 | 6,488,963 | ||||||
17,614,324 | ||||||||
United Kingdom — 20.0% | ||||||||
Babcock International Group plc | 1,735,260 | 8,236,571 | ||||||
Barclays plc | 7,738,378 | 11,089,626 | ||||||
BT Group plc | 1,290,127 | 1,860,475 | ||||||
Capita plc(1) | 3,241,111 | 1,361,922 | ||||||
GlaxoSmithKline plc | 802,509 | 16,619,730 | ||||||
Kingfisher plc | 5,510,917 | 13,278,908 | ||||||
Standard Chartered plc (London) | 517,728 | 2,368,032 | ||||||
WPP plc | 855,171 | 6,496,428 | ||||||
61,311,692 | ||||||||
TOTAL COMMON STOCKS
(Cost $353,865,223) | 297,474,644 | |||||||
EXCHANGE-TRADED FUNDS — 1.7% | ||||||||
iShares MSCI EAFE Value ETF (Cost $4,810,643) | 135,620 | 5,310,879 | ||||||
TEMPORARY CASH INVESTMENTS — 0.5% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.25%, 5/15/25 - 2/15/27, valued at $613,125), in a joint trading account at 0.01%, dated 5/29/20, due 6/1/20 (Delivery value $600,707) | 600,706 | |||||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.125%, 3/31/24, valued at $987,959), at 0.03%, dated 5/29/20, due 6/1/20 (Delivery value $967,002) | 967,000 | |||||||
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $1,567,706) | 1,567,706 | |||||||
TOTAL INVESTMENT SECURITIES — 99.3%
(Cost $360,243,572) | 304,353,229 | |||||||
OTHER ASSETS AND LIABILITIES — 0.7% | 2,100,676 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 306,453,905 |
7
MARKET SECTOR DIVERSIFICATION | ||||||||
(as a % of net assets) | ||||||||
Financials | 28.3 | % | ||||||
Consumer Discretionary | 18.8 | % | ||||||
Energy | 18.0 | % | ||||||
Health Care | 12.7 | % | ||||||
Communication Services | 10.1 | % | ||||||
Industrials | 4.8 | % | ||||||
Real Estate | 1.8 | % | ||||||
Information Technology | 1.7 | % | ||||||
Consumer Staples | 0.9 | % | ||||||
Exchange-Traded Funds | 1.7 | % | ||||||
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.
8
Statement of Assets and Liabilities |
MAY 31, 2020 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $360,243,572) | $ | 304,353,229 | |||
Foreign currency holdings, at value (cost of $69) | 70 | ||||
Receivable for capital shares sold | 547 | ||||
Dividends and interest receivable | 2,212,470 | ||||
306,566,316 | |||||
Liabilities | |||||
Disbursements in excess of demand deposit cash | 22,080 | ||||
Accrued management fees | 90,331 | ||||
112,411 | |||||
Net Assets | $ | 306,453,905 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 391,637,751 | |||
Distributable earnings | (85,183,846) | ||||
$ | 306,453,905 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $86,612,429 | 11,658,276 | $7.43 | ||||||||
I Class, $0.01 Par Value | $3,709 | 499 | $7.43 | ||||||||
A Class, $0.01 Par Value | $3,701 | 499 | $7.42* | ||||||||
R Class, $0.01 Par Value | $4,732 | 639 | $7.41 | ||||||||
R6 Class, $0.01 Par Value | $3,713 | 492 | $7.55 | ||||||||
G Class, $0.01 Par Value | $219,825,621 | 29,371,762 | $7.48 |
*Maximum offering price $7.87 (net asset value divided by 0.9425).
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $548,512) | $ | 4,440,023 | |||
Interest | 27,600 | ||||
4,467,623 | |||||
Expenses: | |||||
Management fees | 1,650,855 | ||||
Distribution and service fees: | |||||
A Class | 5 | ||||
R Class | 11 | ||||
Directors' fees and expenses | 5,163 | ||||
Other expenses | 9,385 | ||||
1,665,419 | |||||
Fees waived - G Class | (1,065,675) | ||||
599,744 | |||||
Net investment income (loss) | 3,867,879 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | (30,076,939) | ||||
Foreign currency translation transactions | 50,409 | ||||
(30,026,530) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | (63,926,822) | ||||
Translation of assets and liabilities in foreign currencies | 24,357 | ||||
(63,902,465) | |||||
Net realized and unrealized gain (loss) | (93,928,995) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (90,061,116) |
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) AND PERIOD ENDED NOVEMBER 30, 2019 | ||||||||||||||
Increase (Decrease) in Net Assets | May 31, 2020 | November 30, 2019(1) | ||||||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 3,867,879 | $ | 14,444,042 | ||||||||||
Net realized gain (loss) | (30,026,530) | 3,810,075 | ||||||||||||
Change in net unrealized appreciation (depreciation) | (63,902,465) | 8,016,669 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | (90,061,116) | 26,270,786 | ||||||||||||
Distributions to Shareholders | ||||||||||||||
From earnings: | ||||||||||||||
Investor Class | (4,358,940) | (491,729) | ||||||||||||
I Class | (218) | — | ||||||||||||
A Class | (216) | — | ||||||||||||
R Class | (215) | — | ||||||||||||
R6 Class | (215) | — | ||||||||||||
G Class | (14,604,585) | (949,592) | ||||||||||||
Decrease in net assets from distributions | (18,964,389) | (1,441,321) | ||||||||||||
Capital Share Transactions | ||||||||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 49,016,584 | 341,633,361 | ||||||||||||
Net increase (decrease) in net assets | (60,008,921) | 366,462,826 | ||||||||||||
Net Assets | ||||||||||||||
Beginning of period | 366,462,826 | — | ||||||||||||
End of period | $ | 306,453,905 | $ | 366,462,826 | ||||||||||
(1) December 6, 2018 (fund inception) through November 30, 2019.
See Notes to Financial Statements.
11
Notes to Financial Statements |
MAY 31, 2020 (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. Non-U.S. Intrinsic Value Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital appreciation.
The fund offers the Investor Class, I Class, A Class, R Class, R6 Class and G Class. The A Class may incur an initial sales charge and may be subject to a contingent deferred sales charge. Sale of the Investor Class and G Class commenced on December 6, 2018, the fund's inception date. Sale of the I Class, A Class, R Class and R6 Class commenced on December 3, 2019.
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.
12
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. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
13
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.
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, 99% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The 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 | I Class | A Class | R Class | R6 Class | G Class | ||||||||||||
1.30% | 1.10% | 1.30% | 1.30% | 0.95% | 0.00%(1) |
(1)Annual management fee before waiver was 0.95%.
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 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 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, 2020 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. There were no interfund transactions during the period.
14
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2020 were $205,302,733 and $163,314,357, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended
May 31, 2020(1) | Period ended November 30, 2019(2) | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Investor Class/Shares Authorized | 130,000,000 | 130,000,000 | ||||||||||||||||||
Sold | 1,995,514 | $ | 15,222,909 | 11,270,260 | $ | 112,661,064 | ||||||||||||||
Issued in reinvestment of distributions | 409,675 | 4,358,940 | 51,009 | 491,729 | ||||||||||||||||
Redeemed | (349,765) | (3,707,954) | (1,718,417) | (16,249,420) | ||||||||||||||||
2,055,424 | 15,873,895 | 9,602,852 | 96,903,373 | |||||||||||||||||
I Class/Shares Authorized | 50,000,000 | N/A | ||||||||||||||||||
Sold | 479 | 5,000 | ||||||||||||||||||
Issued in reinvestment of distributions | 20 | 218 | ||||||||||||||||||
499 | 5,218 | |||||||||||||||||||
A Class/Shares Authorized | 50,000,000 | N/A | ||||||||||||||||||
Sold | 479 | 5,000 | ||||||||||||||||||
Issued in reinvestment of distributions | 20 | 216 | ||||||||||||||||||
499 | 5,216 | |||||||||||||||||||
R Class/Shares Authorized | 50,000,000 | N/A | ||||||||||||||||||
Sold | 645 | 6,136 | ||||||||||||||||||
Issued in reinvestment of distributions | 20 | 215 | ||||||||||||||||||
Redeemed | (26) | (183) | ||||||||||||||||||
639 | 6,168 | |||||||||||||||||||
R6 Class/Shares Authorized | 60,000,000 | N/A | ||||||||||||||||||
Sold | 472 | 5,000 | ||||||||||||||||||
Issued in reinvestment of distributions | 20 | 215 | ||||||||||||||||||
492 | 5,215 | |||||||||||||||||||
G Class/Shares Authorized | 340,000,000 | 340,000,000 | ||||||||||||||||||
Sold | 6,461,521 | 50,801,709 | 29,283,091 | 292,987,696 | ||||||||||||||||
Issued in reinvestment of distributions | 1,371,323 | 14,604,585 | 98,301 | 949,592 | ||||||||||||||||
Redeemed | (3,042,208) | (32,285,422) | (4,800,266) | (49,207,300) | ||||||||||||||||
4,790,636 | 33,120,872 | 24,581,126 | 244,729,988 | |||||||||||||||||
Net increase (decrease) | 6,848,189 | $ | 49,016,584 | 34,183,978 | $ | 341,633,361 |
(1)December 3, 2019 (commencement of sale) through May 31, 2020 for I Class, A Class, R Class and R6 Class.
(2)December 6, 2018 (fund inception) through November 30, 2019.
15
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||
Investment Securities | |||||||||||
Common Stocks | $ | 10,177,903 | $ | 287,296,741 | — | ||||||
Exchange-Traded Funds | 5,310,879 | — | — | ||||||||
Temporary Cash Investments | — | 1,567,706 | — | ||||||||
$ | 15,488,782 | $ | 288,864,447 | — |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund 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 is owned by a relatively small number of shareholders, and in the event such shareholders redeem, the ongoing operations of the fund may be at risk.
The fund’s investment process may result in high portfolio turnover, which could mean high transaction costs, affecting both performance and capital gains tax liabilities to investors.
16
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 364,262,788 | |||
Gross tax appreciation of investments | $ | 8,092,759 | |||
Gross tax depreciation of investments | (68,002,318) | ||||
Net tax appreciation (depreciation) of investments | $ | (59,909,559) |
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 Periods Indicated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $10.61 | 0.06 | (2.79) | (2.73) | (0.32) | (0.13) | (0.45) | $7.43 | (26.99) | % | 1.31%(4) | 1.53%(4) | 52 | % | $86,612 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019(5) | $10.00 | 0.31 | 0.34 | 0.65 | (0.04) | — | (0.04) | $10.61 | 6.59 | % | 1.31%(4) | 3.04%(4) | 85 | % | $101,934 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(6) | $10.45 | 0.07 | (2.64) | (2.57) | (0.32) | (0.13) | (0.45) | $7.43 | (25.85) | % | 1.11%(4) | 1.73%(4) | 52%(7) | $4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A Class | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(6) | $10.45 | 0.05 | (2.63) | (2.58) | (0.32) | (0.13) | (0.45) | $7.42 | (25.98) | % | 1.56%(4) | 1.28%(4) | 52%(7) | $4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(6) | $10.45 | 0.04 | (2.63) | (2.59) | (0.32) | (0.13) | (0.45) | $7.41 | (26.09) | % | 1.81%(4) | 1.03%(4) | 52%(7) | $5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(6) | $10.60 | 0.08 | (2.67) | (2.59) | (0.33) | (0.13) | (0.46) | $7.55 | (25.76) | % | 0.96%(4) | 1.88%(4) | 52%(7) | $4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $10.76 | 0.12 | (2.80) | (2.68) | (0.47) | (0.13) | (0.60) | $7.48 | (26.58) | % | 0.01%(4)(8) | 2.83%(4)(8) | 52 | % | $219,826 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019(5) | $10.00 | 0.43 | 0.37 | 0.80 | (0.04) | — | (0.04) | $10.76 | 8.00 | % | 0.01%(4)(9) | 4.34%(4)(9) | 85 | % | $264,529 |
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, 2020 (unaudited).
(4)Annualized.
(5)December 6, 2018 (fund inception) through November 30, 2019.
(6)December 3, 2019 (commencement of sale) through May 31, 2020 (unaudited).
(7)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the six months ended May 31, 2020.
(8)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 0.96% and 1.88%, respectively.
(9)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 0.96% and 3.39%, respectively.
See Notes to Financial Statements.
Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2018 through December 31, 2019. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
20
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 American Century Investments’ website at americancentury.com/proxy 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 americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange
Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on
Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its
fiscal year available on its website at americancentury.com and, upon request, by calling
1-800-345-2021.
21
Notes |
22
Notes |
23
Notes |
24
![]() | |||||||||||
Contact Us | americancentury.com | ||||||||||
Automated Information Line | 1-800-345-8765 | ||||||||||
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | ||||||||||
Investors Using Advisors | 1-800-378-9878 | ||||||||||
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | ||||||||||
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | ||||||||||
Telecommunications Relay Service for the Deaf | 711 | ||||||||||
American Century World Mutual Funds, Inc. | |||||||||||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |||||||||||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | |||||||||||
©2020 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-95206 2007 |
![image291.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image291.jpg)
Semiannual Report | |||||
May 31, 2020 | |||||
NT Emerging Markets Fund | |||||
G Class (ACLKX) |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.
You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Table of Contents |
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Liquidity Risk Management Program | |||||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Fund Characteristics |
MAY 31, 2020 | ||||||||
Top Ten Holdings | % of net assets | |||||||
Tencent Holdings Ltd. | 7.2% | |||||||
Alibaba Group Holding Ltd., ADR | 7.2% | |||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 6.5% | |||||||
Samsung Electronics Co. Ltd. | 4.6% | |||||||
Naspers Ltd., N Shares | 3.6% | |||||||
GDS Holdings Ltd., ADR | 2.1% | |||||||
China Construction Bank Corp., H Shares | 2.0% | |||||||
HDFC Bank Ltd. | 2.0% | |||||||
Chailease Holding Co. Ltd. | 1.9% | |||||||
Industrial & Commercial Bank of China Ltd., H Shares | 1.8% | |||||||
Types of Investments in Portfolio | % of net assets | |||||||
Common Stocks | 98.6% | |||||||
Temporary Cash Investments | 1.5% | |||||||
Other Assets and Liabilities | (0.1)% | |||||||
Investments by Country | % of net assets | |||||||
China | 43.3% | |||||||
Taiwan | 12.7% | |||||||
South Korea | 11.7% | |||||||
India | 6.0% | |||||||
Brazil | 5.7% | |||||||
South Africa | 4.8% | |||||||
Russia | 3.0% | |||||||
Thailand | 2.1% | |||||||
Other Countries | 9.3% | |||||||
Cash and Equivalents* | 1.4% |
*Includes temporary cash investments and other assets and liabilities.
2
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2019 to May 31, 2020.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value 12/1/19 | Ending Account Value 5/31/20 | Expenses Paid During Period(1) 12/1/19 - 5/31/20 | Annualized
Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
G Class | $1,000 | $924.20 | $0.14 | 0.03% | ||||||||||
Hypothetical | ||||||||||||||
G Class | $1,000 | $1,024.85 | $0.15 | 0.03% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 366, 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, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 98.6% | ||||||||
Argentina — 1.1% | ||||||||
Globant SA(1) | 28,800 | $ | 4,038,048 | |||||
Brazil — 5.7% | ||||||||
B3 SA - Brasil Bolsa Balcao | 562,300 | 4,806,046 | ||||||
Cia Brasileira de Distribuicao | 142,200 | 1,651,889 | ||||||
Magazine Luiza SA | 325,188 | 3,942,744 | ||||||
Raia Drogasil SA | 115,600 | 2,388,557 | ||||||
TOTVS SA | 543,300 | 2,048,460 | ||||||
Vale SA, ADR | 196,237 | 1,915,273 | ||||||
WEG SA | 522,300 | 4,062,866 | ||||||
20,815,835 | ||||||||
China — 43.3% | ||||||||
A-Living Services Co. Ltd., H Shares | 675,250 | 3,637,276 | ||||||
Alibaba Group Holding Ltd., ADR(1) | 127,184 | 26,376,690 | ||||||
Anhui Conch Cement Co. Ltd., H Shares | 601,000 | 4,531,594 | ||||||
China Construction Bank Corp., H Shares | 9,084,000 | 7,176,087 | ||||||
China Education Group Holdings Ltd. | 1,582,000 | 2,741,270 | ||||||
China Gas Holdings Ltd. | 864,200 | 3,040,032 | ||||||
China International Travel Service Corp. Ltd., A Shares | 172,987 | 2,457,809 | ||||||
China Overseas Land & Investment Ltd. | 496,000 | 1,523,255 | ||||||
CIFI Holdings Group Co. Ltd. | 6,842,376 | 4,945,807 | ||||||
CNOOC Ltd. | 4,524,000 | 5,116,716 | ||||||
Country Garden Services Holdings Co. Ltd.(1) | 1,156,000 | 5,439,817 | ||||||
GDS Holdings Ltd., ADR(1) | 133,255 | 7,595,535 | ||||||
Geely Automobile Holdings Ltd. | 1,470,000 | 2,033,180 | ||||||
Haier Electronics Group Co. Ltd. | 850,000 | 2,375,878 | ||||||
Industrial & Commercial Bank of China Ltd., H Shares | 10,236,095 | 6,641,280 | ||||||
JD.com, Inc., ADR(1) | 67,705 | 3,678,413 | ||||||
Kweichow Moutai Co. Ltd., A Shares | 27,500 | 5,272,214 | ||||||
Li Ning Co. Ltd. | 719,000 | 2,425,874 | ||||||
Luxshare Precision Industry Co. Ltd., A Shares | 685,600 | 4,292,823 | ||||||
New Oriental Education & Technology Group, Inc., ADR(1) | 53,581 | 6,427,577 | ||||||
Ping An Insurance Group Co. of China Ltd., H Shares | 600,500 | 5,961,898 | ||||||
Shenzhou International Group Holdings Ltd. | 208,500 | 2,506,151 | ||||||
TAL Education Group, ADR(1) | 106,920 | 6,036,703 | ||||||
Tencent Holdings Ltd. | 495,200 | 26,394,872 | ||||||
Wuxi Biologics Cayman, Inc.(1) | 138,500 | 2,187,744 | ||||||
Xinyi Solar Holdings Ltd. | 5,964,000 | 4,351,983 | ||||||
Zhongji Innolight Co. Ltd., A Shares | 406,900 | 3,258,591 | ||||||
158,427,069 | ||||||||
Egypt — 0.6% | ||||||||
Commercial International Bank Egypt S.A.E. | 522,719 | 2,066,449 | ||||||
Hungary — 1.3% | ||||||||
OTP Bank Nyrt(1) | 147,446 | 4,911,417 | ||||||
India — 6.0% | ||||||||
Asian Paints Ltd. | 63,585 | 1,412,616 |
4
Shares | Value | |||||||
Bajaj Finance Ltd. | 34,028 | $ | 875,173 | |||||
Bata India Ltd. | 93,721 | 1,641,343 | ||||||
HDFC Bank Ltd. | 567,688 | 7,157,539 | ||||||
Indraprastha Gas Ltd. | 306,673 | 1,909,284 | ||||||
Jubilant Foodworks Ltd. | 122,796 | 2,688,798 | ||||||
Nestle India Ltd. | 14,802 | 3,442,632 | ||||||
Tata Consultancy Services Ltd. | 107,836 | 2,813,111 | ||||||
21,940,496 | ||||||||
Indonesia — 1.4% | ||||||||
Bank Rakyat Indonesia Persero Tbk PT | 13,086,500 | 2,649,425 | ||||||
Telekomunikasi Indonesia Persero Tbk PT | 11,399,700 | 2,464,371 | ||||||
5,113,796 | ||||||||
Malaysia — 1.1% | ||||||||
Top Glove Corp. Bhd | 1,327,500 | 4,067,052 | ||||||
Mexico — 1.6% | ||||||||
America Movil SAB de CV, Class L ADR | 150,620 | 1,997,221 | ||||||
Wal-Mart de Mexico SAB de CV | 1,597,931 | 3,999,422 | ||||||
5,996,643 | ||||||||
Peru — 0.4% | ||||||||
Credicorp Ltd. | 11,547 | 1,591,408 | ||||||
Philippines — 0.7% | ||||||||
Ayala Land, Inc. | 4,070,480 | 2,541,516 | ||||||
Russia — 3.0% | ||||||||
Novatek PJSC, GDR | 22,582 | 3,286,241 | ||||||
Sberbank of Russia PJSC, ADR (London) | 286,231 | 3,253,700 | ||||||
Yandex NV, A Shares(1) | 115,474 | 4,645,519 | ||||||
11,185,460 | ||||||||
South Africa — 4.8% | ||||||||
Capitec Bank Holdings Ltd. | 44,407 | 2,159,157 | ||||||
Kumba Iron Ore Ltd. | 76,324 | 2,063,594 | ||||||
Naspers Ltd., N Shares | 83,559 | 13,286,389 | ||||||
17,509,140 | ||||||||
South Korea — 11.7% | ||||||||
CJ Logistics Corp.(1) | 36,824 | 4,792,962 | ||||||
Hotel Shilla Co. Ltd. | 41,097 | 2,642,948 | ||||||
Korea Shipbuilding & Offshore Engineering Co. Ltd.(1) | 21,883 | 1,610,918 | ||||||
LG Household & Health Care Ltd. | 2,600 | 2,882,153 | ||||||
Orion Corp/Republic of Korea | 28,909 | 3,086,866 | ||||||
Samsung Electro-Mechanics Co. Ltd. | 55,900 | 5,662,101 | ||||||
Samsung Electronics Co. Ltd. | 407,895 | 16,747,475 | ||||||
SK Hynix, Inc. | 81,898 | 5,407,566 | ||||||
42,832,989 | ||||||||
Taiwan — 12.7% | ||||||||
ASPEED Technology, Inc. | 113,000 | 5,838,588 | ||||||
Chailease Holding Co. Ltd. | 1,800,788 | 7,001,219 | ||||||
Giant Manufacturing Co. Ltd. | 230,000 | 1,803,344 | ||||||
Largan Precision Co. Ltd. | 15,000 | 1,916,922 | ||||||
Merida Industry Co. Ltd. | 343,000 | 2,059,636 | ||||||
President Chain Store Corp. | 202,000 | 1,988,751 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 2,454,774 | 23,907,569 | ||||||
Win Semiconductors Corp. | 223,000 | 1,909,700 | ||||||
46,425,729 |
5
Shares | Value | |||||||
Thailand — 2.1% | ||||||||
Airports of Thailand PCL | 973,000 | $ | 1,908,964 | |||||
CP ALL PCL | 1,508,500 | 3,336,705 | ||||||
Muangthai Capital PCL | 1,419,500 | 2,474,432 | ||||||
7,720,101 | ||||||||
Turkey — 0.6% | ||||||||
BIM Birlesik Magazalar AS | 244,463 | 2,335,006 | ||||||
United Kingdom — 0.5% | ||||||||
Network International Holdings plc(1) | 292,484 | 1,686,710 | ||||||
TOTAL COMMON STOCKS
(Cost $271,079,559) | 361,204,864 | |||||||
TEMPORARY CASH INVESTMENTS — 1.5% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.25%, 5/15/25 - 2/15/27, valued at $2,164,590), in a joint trading account at 0.01%, dated 5/29/20, due 6/1/20 (Delivery value $2,120,750) | 2,120,748 | |||||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 0.50%, 4/15/24, valued at $3,490,858), at 0.03%, dated 5/29/20, due 6/1/20 (Delivery value $3,419,009) | 3,419,000 | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 4,886 | 4,886 | ||||||
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $5,544,634) | 5,544,634 | |||||||
TOTAL INVESTMENT SECURITIES — 100.1%
(Cost $276,624,193) | 366,749,498 | |||||||
OTHER ASSETS AND LIABILITIES — (0.1)% | (502,275) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 366,247,223 |
MARKET SECTOR DIVERSIFICATION | ||||||||
(as a % of net assets) | ||||||||
Information Technology | 25.2 | % | ||||||
Consumer Discretionary | 23.3 | % | ||||||
Financials | 16.0 | % | ||||||
Communication Services | 9.6 | % | ||||||
Consumer Staples | 8.2 | % | ||||||
Industrials | 5.8 | % | ||||||
Materials | 2.7 | % | ||||||
Real Estate | 2.5 | % | ||||||
Energy | 2.3 | % | ||||||
Health Care | 1.7 | % | ||||||
Utilities | 1.3 | % | ||||||
Cash and Equivalents* | 1.4 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||||||||
ADR | - | American Depositary Receipt | ||||||||||||
GDR | - | Global Depositary Receipt |
(1)Non-income producing.
See Notes to Financial Statements.
6
Statement of Assets and Liabilities |
MAY 31, 2020 (UNAUDITED) | ||||||||
Assets | ||||||||
Investment securities, at value (cost of $276,624,193) | $ | 366,749,498 | ||||||
Foreign currency holdings, at value (cost of $78,870) | 78,803 | |||||||
Receivable for investments sold | 2,865,283 | |||||||
Receivable for capital shares sold | 238,519 | |||||||
Dividends and interest receivable | 330,682 | |||||||
Other assets | 52,062 | |||||||
370,314,847 | ||||||||
Liabilities | ||||||||
Payable for investments purchased | 4,067,624 | |||||||
Net Assets | $ | 366,247,223 | ||||||
G Class Capital Shares, $0.01 Par Value | ||||||||
Shares authorized | 510,000,000 | |||||||
Shares outstanding | 35,353,546 | |||||||
Net Asset Value Per Share | $ | 10.36 | ||||||
Net Assets Consist of: | ||||||||
Capital (par value and paid-in surplus) | $ | 302,391,750 | ||||||
Distributable earnings | 63,855,473 | |||||||
$ | 366,247,223 |
See Notes to Financial Statements.
7
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) | ||||||||
Investment Income (Loss) | ||||||||
Income: | ||||||||
Dividends (net of foreign taxes withheld of $290,480) | $ | 2,234,341 | ||||||
Interest | 19,503 | |||||||
Securities lending, net | 11,375 | |||||||
2,265,219 | ||||||||
Expenses: | ||||||||
Management fees | 1,719,916 | |||||||
Directors' fees and expenses | 6,212 | |||||||
Other expenses | 41,663 | |||||||
1,767,791 | ||||||||
Fees waived | (1,719,916) | |||||||
47,875 | ||||||||
Net investment income (loss) | 2,217,344 | |||||||
Realized and Unrealized Gain (Loss) | ||||||||
Net realized gain (loss) on: | ||||||||
Investment transactions (net of foreign tax expenses paid (refunded) of $(20,623)) | (5,408,847) | |||||||
Foreign currency translation transactions | 45,185 | |||||||
(5,363,662) | ||||||||
Change in net unrealized appreciation (depreciation) on: | ||||||||
Investments | (21,634,957) | |||||||
Translation of assets and liabilities in foreign currencies | (2,726) | |||||||
(21,637,683) | ||||||||
Net realized and unrealized gain (loss) | (27,001,345) | |||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (24,784,001) |
See Notes to Financial Statements.
8
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2019 | ||||||||||||||
Increase (Decrease) in Net Assets | May 31, 2020 | November 30, 2019 | ||||||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 2,217,344 | $ | 12,147,378 | ||||||||||
Net realized gain (loss) | (5,363,662) | (20,069,885) | ||||||||||||
Change in net unrealized appreciation (depreciation) | (21,637,683) | 60,255,917 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | (24,784,001) | 52,333,410 | ||||||||||||
Distributions to Shareholders | ||||||||||||||
From earnings | (12,202,414) | (36,104,267) | ||||||||||||
Capital Share Transactions | ||||||||||||||
Proceeds from shares sold | 23,303,590 | 100,536,971 | ||||||||||||
Proceeds from reinvestment of distributions | 12,202,414 | 36,104,267 | ||||||||||||
Payments for shares redeemed | (64,267,929) | (123,853,000) | ||||||||||||
Net increase (decrease) in net assets from capital share transactions | (28,761,925) | 12,788,238 | ||||||||||||
Net increase (decrease) in net assets | (65,748,340) | 29,017,381 | ||||||||||||
Net Assets | ||||||||||||||
Beginning of period | 431,995,563 | 402,978,182 | ||||||||||||
End of period | $ | 366,247,223 | $ | 431,995,563 | ||||||||||
Transactions in Shares of the Fund | ||||||||||||||
Sold | 2,201,167 | 9,172,751 | ||||||||||||
Issued in reinvestment of distributions | 1,032,353 | 3,643,216 | ||||||||||||
Redeemed | (5,374,470) | (11,328,492) | ||||||||||||
Net increase (decrease) in shares of the fund | (2,140,950) | 1,487,475 |
See Notes to Financial Statements.
9
Notes to Financial Statements |
MAY 31, 2020 (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.
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. 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.
10
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. Securities lending income is net of fees and rebates earned by the lending agent for its securities.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Distributions to Shareholders — Distributions from net investment income 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
11
maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
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, 98% 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 ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses. The fee is computed and accrued daily based on the daily net assets of the fund and paid monthly in arrears. The annual management fee is 0.90%. 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 annual management fee for the period ended May 31, 2020 was 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.
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 other expenses to the annualized ratio of operating expenses to average net assets was 0.02% for the period ended May 31, 2020.
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 $14,707 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $4,734 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, 2020 were $94,474,779 and $124,939,947, respectively.
12
5. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||
Investment Securities | |||||||||||
Common Stocks | |||||||||||
Argentina | $ | 4,038,048 | — | — | |||||||
Brazil | 1,915,273 | $ | 18,900,562 | — | |||||||
China | 50,114,918 | 108,312,151 | — | ||||||||
Mexico | 1,997,221 | 3,999,422 | — | ||||||||
Peru | 1,591,408 | — | — | ||||||||
Russia | 4,645,519 | 6,539,941 | — | ||||||||
Other Countries | — | 159,150,401 | — | ||||||||
Temporary Cash Investments | 4,886 | 5,539,748 | — | ||||||||
$ | 64,307,273 | $ | 302,442,225 | — |
6. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund is owned by a relatively small number of shareholders, and in the event such shareholders redeem, the ongoing operations of the fund may be at risk.
13
7. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 278,149,790 | |||
Gross tax appreciation of investments | $ | 101,996,184 | |||
Gross tax depreciation of investments | (13,396,476) | ||||
Net tax appreciation (depreciation) of investments | $ | 88,599,708 |
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, 2019, the fund had accumulated short-term capital losses of $(20,367,328), 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.
14
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $11.52 | 0.06 | (0.89) | (0.83) | (0.33) | — | (0.33) | $10.36 | (7.58)% | 0.03%(4) | 0.93%(4) | 1.16%(4) | 0.26%(4) | 25% | $366,247 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.19 | 0.31 | 0.94 | 1.25 | (0.15) | (0.77) | (0.92) | $11.52 | 12.54% | 0.01% | 0.91% | 2.80% | 1.90% | 50% | $431,996 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $14.54 | 0.23 | (2.00) | (1.77) | (0.14) | (1.44) | (1.58) | $11.19 | (13.75)% | 0.01% | 0.95% | 1.78% | 0.84% | 66% | $402,978 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
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, 2020 (unaudited).
(4)Annualized.
See Notes to Financial Statements.
Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2018 through December 31, 2019. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
16
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 American Century Investments’ website at americancentury.com/proxy 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 americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange
Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on
Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its
fiscal year available on its website at americancentury.com and, upon request, by calling
1-800-345-2021.
17
Notes |
18
Notes |
19
Notes |
20
Notes |
21
Notes |
22
Notes |
23
Notes |
24
![]() | |||||||||||
Contact Us | americancentury.com | ||||||||||
Automated Information Line | 1-800-345-8765 | ||||||||||
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | ||||||||||
Investors Using Advisors | 1-800-378-9878 | ||||||||||
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | ||||||||||
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | ||||||||||
Telecommunications Relay Service for the Deaf | 711 | ||||||||||
American Century 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. | |||||||||||
©2020 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92626 2007 |
![image291.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image291.jpg)
Semiannual Report | |||||
May 31, 2020 | |||||
NT International Growth Fund | |||||
G Class (ACLNX) |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.
You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Table of Contents |
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Liquidity Risk Management Program | |||||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Fund Characteristics |
MAY 31, 2020 | |||||
Top Ten Holdings | % of net assets | ||||
Nestle SA | 3.9% | ||||
AstraZeneca plc | 2.6% | ||||
ASML Holding NV | 2.1% | ||||
Lonza Group AG | 2.0% | ||||
CSL Ltd. | 2.0% | ||||
Keyence Corp. | 2.0% | ||||
Cellnex Telecom SA | 1.9% | ||||
LVMH Moet Hennessy Louis Vuitton SE | 1.9% | ||||
Iberdrola SA | 1.9% | ||||
London Stock Exchange Group plc | 1.8% | ||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 99.5% | ||||
Temporary Cash Investments | 1.1% | ||||
Other Assets and Liabilities | (0.6)% | ||||
Investments by Country | % of net assets | ||||
Japan | 14.3% | ||||
France | 12.7% | ||||
Switzerland | 11.8% | ||||
United Kingdom | 10.3% | ||||
China | 5.6% | ||||
Canada | 5.5% | ||||
Germany | 5.5% | ||||
Sweden | 5.0% | ||||
Netherlands | 4.8% | ||||
Spain | 4.7% | ||||
Denmark | 4.5% | ||||
Australia | 3.0% | ||||
Hong Kong | 2.5% | ||||
Ireland | 2.3% | ||||
Other Countries | 7.0% | ||||
Cash and Equivalents* | 0.5% |
*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, 2019 to May 31, 2020.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value 12/1/19 | Ending Account Value 5/31/20 | Expenses Paid
During Period(1)
12/1/19 - 5/31/20 |
Annualized
Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
G Class | $1,000 | $982.90 | $0.05 | 0.01% | ||||||||||
Hypothetical | ||||||||||||||
G Class | $1,000 | $1,024.95 | $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 183, the number of days in the most recent fiscal half-year, divided by 366, 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, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.5% | ||||||||
Australia — 3.0% | ||||||||
Aristocrat Leisure Ltd. | 153,330 | $ | 2,599,155 | |||||
Atlassian Corp. plc, Class A(1) | 22,810 | 4,226,693 | ||||||
CSL Ltd. | 81,540 | 14,875,351 | ||||||
21,701,199 | ||||||||
Belgium — 0.8% | ||||||||
KBC Group NV | 116,890 | 6,139,099 | ||||||
Brazil — 1.0% | ||||||||
Magazine Luiza SA | 586,299 | 7,108,586 | ||||||
Canada — 5.5% | ||||||||
Alimentation Couche-Tard, Inc., B Shares | 192,360 | 6,021,510 | ||||||
Canada Goose Holdings, Inc.(1) | 167,050 | 3,260,816 | ||||||
Canadian Pacific Railway Ltd. | 29,380 | 7,363,938 | ||||||
Element Fleet Management Corp. | 762,430 | 5,421,207 | ||||||
Intact Financial Corp. | 77,620 | 7,409,938 | ||||||
Shopify, Inc., Class A(1) | 6,710 | 5,092,602 | ||||||
TMX Group Ltd. | 55,770 | 5,590,164 | ||||||
40,160,175 | ||||||||
China — 5.6% | ||||||||
Alibaba Group Holding Ltd., ADR(1) | 55,600 | 11,530,884 | ||||||
ANTA Sports Products Ltd. | 714,000 | 6,408,732 | ||||||
GDS Holdings Ltd., ADR(1) | 114,130 | 6,505,410 | ||||||
Huazhu Group Ltd., ADR | 96,006 | 3,246,923 | ||||||
TAL Education Group, ADR(1) | 75,670 | 4,272,328 | ||||||
Tencent Holdings Ltd. | 175,700 | 9,365,063 | ||||||
41,329,340 | ||||||||
Denmark — 4.5% | ||||||||
Carlsberg A/S, B Shares | 74,820 | 9,690,083 | ||||||
DSV Panalpina A/S | 97,812 | 10,374,243 | ||||||
Novo Nordisk A/S, B Shares | 196,460 | 12,808,583 | ||||||
32,872,909 | ||||||||
Finland — 1.4% | ||||||||
Neste Oyj | 254,900 | 10,327,270 | ||||||
France — 12.7% | ||||||||
Air Liquide SA | 87,120 | 11,855,618 | ||||||
Arkema SA | 80,242 | 7,018,185 | ||||||
Dassault Systemes SE | 40,420 | 6,861,643 | ||||||
Edenred | 161,345 | 6,756,653 | ||||||
Iliad SA | 26,660 | 4,703,380 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 33,630 | 14,082,908 | ||||||
Schneider Electric SE | 132,700 | 13,238,424 | ||||||
Teleperformance | 31,450 | 7,466,015 | ||||||
TOTAL SA | 144,280 | 5,424,714 | ||||||
Valeo SA | 462,630 | 11,446,926 | ||||||
Vivendi SA | 163,360 | 3,719,239 | ||||||
92,573,705 |
4
Shares | Value | |||||||
Germany — 5.5% | ||||||||
adidas AG(1) | 35,980 | $ | 9,435,128 | |||||
E.ON SE | 461,190 | 4,881,359 | ||||||
Infineon Technologies AG | 530,995 | 11,066,778 | ||||||
Puma SE(1) | 103,360 | 7,339,137 | ||||||
Symrise AG | 67,540 | 7,370,655 | ||||||
40,093,057 | ||||||||
Hong Kong — 2.5% | ||||||||
AIA Group Ltd. | 1,561,600 | 12,731,387 | ||||||
Techtronic Industries Co. Ltd. | 673,000 | 5,857,213 | ||||||
18,588,600 | ||||||||
India — 1.0% | ||||||||
HDFC Bank Ltd. | 586,670 | 7,396,868 | ||||||
Indonesia — 0.6% | ||||||||
Bank Central Asia Tbk PT | 2,492,800 | 4,435,243 | ||||||
Ireland — 2.3% | ||||||||
ICON plc(1) | 30,130 | 5,075,398 | ||||||
Kerry Group plc, A Shares | 65,460 | 8,132,353 | ||||||
Ryanair Holdings plc, ADR(1) | 50,710 | 3,639,457 | ||||||
16,847,208 | ||||||||
Italy — 1.4% | ||||||||
Ferrari NV | 32,130 | 5,442,092 | ||||||
Prysmian SpA | 224,030 | 4,786,843 | ||||||
10,228,935 | ||||||||
Japan — 14.3% | ||||||||
GMO Payment Gateway, Inc. | 46,600 | 5,249,375 | ||||||
Hoya Corp. | 130,500 | 12,249,076 | ||||||
Keyence Corp. | 35,100 | 14,455,151 | ||||||
Kobe Bussan Co. Ltd. | 93,400 | 4,839,672 | ||||||
MonotaRO Co. Ltd. | 266,200 | 9,677,370 | ||||||
Murata Manufacturing Co. Ltd. | 240,500 | 13,442,618 | ||||||
Obic Co. Ltd. | 43,100 | 7,477,773 | ||||||
Olympus Corp. | 111,500 | 1,940,003 | ||||||
Pan Pacific International Holdings Corp. | 377,200 | 7,603,985 | ||||||
Recruit Holdings Co. Ltd. | 378,700 | 13,065,954 | ||||||
Rohm Co. Ltd. | 62,200 | 4,193,348 | ||||||
Terumo Corp. | 260,200 | 10,227,859 | ||||||
104,422,184 | ||||||||
Netherlands — 4.8% | ||||||||
Adyen NV(1) | 7,630 | 10,038,113 | ||||||
ASML Holding NV | 46,660 | 15,274,249 | ||||||
Koninklijke DSM NV | 75,330 | 9,668,113 | ||||||
34,980,475 | ||||||||
Spain — 4.7% | ||||||||
Amadeus IT Group SA | 119,016 | 6,232,030 | ||||||
Cellnex Telecom SA | 248,477 | 14,106,976 | ||||||
Iberdrola SA | 1,282,186 | 13,838,732 | ||||||
34,177,738 | ||||||||
Sweden — 5.0% | ||||||||
Atlas Copco AB, A Shares | 174,190 | 6,858,810 |
5
Shares | Value | |||||||
Hexagon AB, B Shares(1) | 189,730 | $ | 10,472,190 | |||||
Lundin Energy AB | 363,743 | 8,813,521 | ||||||
Telefonaktiebolaget LM Ericsson, B Shares | 1,147,440 | 10,474,102 | ||||||
36,618,623 | ||||||||
Switzerland — 11.8% | ||||||||
Lonza Group AG | 30,270 | 14,905,210 | ||||||
Nestle SA | 263,272 | 28,504,289 | ||||||
Novartis AG | 107,100 | 9,284,456 | ||||||
Partners Group Holding AG | 9,680 | 8,043,652 | ||||||
Sika AG | 58,424 | 10,039,195 | ||||||
Temenos AG | 54,120 | 8,304,742 | ||||||
Zurich Insurance Group AG | 22,740 | 7,357,339 | ||||||
86,438,883 | ||||||||
Taiwan — 0.8% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 582,000 | 5,668,222 | ||||||
United Kingdom — 10.3% | ||||||||
Ashtead Group plc | 159,500 | 4,747,040 | ||||||
ASOS plc(1) | 313,920 | 11,648,326 | ||||||
Associated British Foods plc | 259,360 | 5,858,207 | ||||||
AstraZeneca plc | 180,720 | 19,214,924 | ||||||
Ferguson plc | 59,020 | 4,661,770 | ||||||
Halma plc | 131,020 | 3,786,964 | ||||||
London Stock Exchange Group plc | 135,490 | 13,489,827 | ||||||
Ocado Group plc(1) | 214,320 | 5,819,489 | ||||||
Reckitt Benckiser Group plc | 67,140 | 6,005,764 | ||||||
75,232,311 | ||||||||
TOTAL COMMON STOCKS
(Cost $547,661,928) | 727,340,630 | |||||||
TEMPORARY CASH INVESTMENTS — 1.1% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.25%, 5/15/25 - 2/15/27, valued at $3,070,680), in a joint trading account at 0.01%, dated 5/29/20, due 6/1/20 (Delivery value $3,008,489) | 3,008,486 | |||||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.125%, 3/31/24, valued at $4,950,536), at 0.03%, dated 5/29/20, due 6/1/20 (Delivery value $4,849,012) | 4,849,000 | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 6,931 | 6,931 | ||||||
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $7,864,417) | 7,864,417 | |||||||
TOTAL INVESTMENT SECURITIES — 100.6%
(Cost $555,526,345) | 735,205,047 | |||||||
OTHER ASSETS AND LIABILITIES — (0.6)% | (4,376,489) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 730,828,558 |
6
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Information Technology | 21.2 | % | |||
Consumer Discretionary | 15.2 | % | |||
Health Care | 13.8 | % | |||
Industrials | 12.6 | % | |||
Financials | 10.6 | % | |||
Consumer Staples | 9.4 | % | |||
Materials | 6.3 | % | |||
Communication Services | 4.4 | % | |||
Energy | 3.4 | % | |||
Utilities | 2.6 | % | |||
Cash and Equivalents* | 0.5 | % |
*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, 2020 (UNAUDITED) | ||||||||
Assets | ||||||||
Investment securities, at value (cost of $555,526,345) | $ | 735,205,047 | ||||||
Foreign currency holdings, at value (cost of $27,254) | 27,255 | |||||||
Receivable for investments sold | 14,637,657 | |||||||
Receivable for capital shares sold | 508 | |||||||
Dividends and interest receivable | 2,486,830 | |||||||
Other assets | 12,219 | |||||||
752,369,516 | ||||||||
Liabilities | ||||||||
Payable for investments purchased | 15,118,991 | |||||||
Payable for capital shares redeemed | 6,390,415 | |||||||
Accrued foreign taxes | 31,552 | |||||||
21,540,958 | ||||||||
Net Assets | $ | 730,828,558 | ||||||
G Class Capital Shares, $0.01 Par Value | ||||||||
Shares authorized | 1,000,000,000 | |||||||
Shares outstanding | 67,136,147 | |||||||
Net Asset Value Per Share | $ | 10.89 | ||||||
Net Assets Consist of: | ||||||||
Capital (par value and paid-in surplus) | $ | 553,427,281 | ||||||
Distributable earnings | 177,401,277 | |||||||
$ | 730,828,558 |
See Notes to Financial Statements.
8
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) | ||||||||
Investment Income (Loss) | ||||||||
Income: | ||||||||
Dividends (net of foreign taxes withheld of $899,105) | $ | 6,463,352 | ||||||
Securities lending, net | 22,095 | |||||||
Interest | 19,335 | |||||||
6,504,782 | ||||||||
Expenses: | ||||||||
Management fees | 3,034,277 | |||||||
Directors' fees and expenses | 12,017 | |||||||
Other expenses | 29,228 | |||||||
3,075,522 | ||||||||
Fees waived | (3,034,277) | |||||||
41,245 | ||||||||
Net investment income (loss) | 6,463,537 | |||||||
Realized and Unrealized Gain (Loss) | ||||||||
Net realized gain (loss) on: | ||||||||
Investment transactions (net of foreign tax expenses paid (refunded) of $10,922) | (5,969,501) | |||||||
Foreign currency translation transactions | (36,284) | |||||||
(6,005,785) | ||||||||
Change in net unrealized appreciation (depreciation) on: | ||||||||
Investments (includes (increase) decrease in accrued foreign taxes of $96,086) | (9,061,480) | |||||||
Translation of assets and liabilities in foreign currencies | 78,655 | |||||||
(8,982,825) | ||||||||
Net realized and unrealized gain (loss) | (14,988,610) | |||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (8,525,073) |
See Notes to Financial Statements.
9
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2019 | ||||||||||||||
Increase (Decrease) in Net Assets | May 31, 2020 | November 30, 2019 | ||||||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 6,463,537 | $ | 13,195,921 | ||||||||||
Net realized gain (loss) | (6,005,785) | 17,160,913 | ||||||||||||
Change in net unrealized appreciation (depreciation) | (8,982,825) | 107,590,800 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | (8,525,073) | 137,947,634 | ||||||||||||
Distributions to Shareholders | ||||||||||||||
From earnings | (21,446,973) | (108,218,409) | ||||||||||||
Capital Share Transactions | ||||||||||||||
Proceeds from shares sold | 35,725,248 | 25,530,950 | ||||||||||||
Proceeds from reinvestment of distributions | 21,446,973 | 108,218,409 | ||||||||||||
Payments for shares redeemed | (123,522,490) | (232,567,170) | ||||||||||||
Net increase (decrease) in net assets from capital share transactions | (66,350,269) | (98,817,811) | ||||||||||||
Net increase (decrease) in net assets | (96,322,315) | (69,088,586) | ||||||||||||
Net Assets | ||||||||||||||
Beginning of period | 827,150,873 | 896,239,459 | ||||||||||||
End of period | $ | 730,828,558 | $ | 827,150,873 | ||||||||||
Transactions in Shares of the Fund | ||||||||||||||
Sold | 3,708,283 | 2,530,857 | ||||||||||||
Issued in reinvestment of distributions | 1,918,957 | 11,892,133 | ||||||||||||
Redeemed | (11,241,532) | (22,184,342) | ||||||||||||
Net increase (decrease) in shares of the fund | (5,614,292) | (7,761,352) |
See Notes to Financial Statements.
10
Notes to Financial Statements |
MAY 31, 2020 (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.
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. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
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Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Distributions to Shareholders — Distributions from net investment income 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.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
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, 99% 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 ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses. The fee is computed and accrued daily based on the daily net assets of the fund and paid monthly in arrears. The 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, 2020 was 0.82% 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. 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, 2020 were $235,496,833 and $315,105,567, respectively.
13
5. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||
Investment Securities | |||||||||||
Common Stocks | |||||||||||
Australia | $ | 4,226,693 | $ | 17,474,506 | — | ||||||
Canada | 3,260,816 | 36,899,359 | — | ||||||||
China | 25,555,545 | 15,773,795 | — | ||||||||
Ireland | 8,714,855 | 8,132,353 | — | ||||||||
Other Countries | — | 607,302,708 | — | ||||||||
Temporary Cash Investments | 6,931 | 7,857,486 | — | ||||||||
$ | 41,764,840 | $ | 693,440,207 | — |
6. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund is owned by a relatively small number of shareholders, and in the event such shareholders redeem, the ongoing operations of the fund may be at risk.
14
7. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 557,467,629 | |||
Gross tax appreciation of investments | $ | 188,977,121 | |||
Gross tax depreciation of investments | (11,239,703) | ||||
Net tax appreciation (depreciation) of investments | $ | 177,737,418 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $11.37 | 0.09 | (0.27) | (0.18) | (0.17) | (0.13) | (0.30) | $10.89 | (1.71)% | 0.01%(4) | 0.83%(4) | 1.76%(4) | 0.94%(4) | 32% | $730,829 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $11.13 | 0.17 | 1.50 | 1.67 | (0.22) | (1.21) | (1.43) | $11.37 | 18.27% | 0.01% | 0.84% | 1.60% | 0.77% | 70% | $827,151 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $12.57 | 0.22 | (1.09) | (0.87) | (0.20) | (0.37) | (0.57) | $11.13 | (7.35)% | 0.01% | 0.82% | 1.75% | 0.94% | 71% | $896,239 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
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, 2020 (unaudited).
(4)Annualized.
See Notes to Financial Statements.
Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2018 through December 31, 2019. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
17
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 American Century Investments’ website at americancentury.com/proxy 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 americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange
Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on
Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its
fiscal year available on its website at americancentury.com and, upon request, by calling
1-800-345-2021.
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Notes |
19
Notes |
20
Notes |
21
Notes |
22
Notes |
23
Notes |
24
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Contact Us | americancentury.com | ||||||||||
Automated Information Line | 1-800-345-8765 | ||||||||||
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | ||||||||||
Investors Using Advisors | 1-800-378-9878 | ||||||||||
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | ||||||||||
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | ||||||||||
Telecommunications Relay Service for the Deaf | 711 | ||||||||||
American Century World Mutual Funds, Inc. | |||||||||||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |||||||||||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | |||||||||||
©2020 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92627 2007 |
![image291.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image291.jpg)
Semiannual Report | |||||
May 31, 2020 | |||||
NT International Small-Mid Cap Fund | |||||
Investor Class (ANTSX) | |||||
G Class (ANTMX) |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.
You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Table of Contents |
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Liquidity Risk Management Program | |||||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Fund Characteristics |
MAY 31, 2020 | ||||||||
Top Ten Holdings | % of net assets | |||||||
Avast plc | 1.6% | |||||||
Intermediate Capital Group plc | 1.6% | |||||||
SHO-BOND Holdings Co. Ltd. | 1.5% | |||||||
Nabtesco Corp. | 1.4% | |||||||
Games Workshop Group plc | 1.4% | |||||||
MorphoSys AG | 1.4% | |||||||
Harmonic Drive Systems, Inc. | 1.4% | |||||||
Lasertec Corp. | 1.3% | |||||||
Saracen Mineral Holdings Ltd. | 1.3% | |||||||
Nissan Chemical Corp. | 1.3% | |||||||
Types of Investments in Portfolio | % of net assets | |||||||
Common Stocks | 99.3% | |||||||
Rights | 0.1% | |||||||
Total Equity Exposure | 99.4% | |||||||
Temporary Cash Investments | 0.4% | |||||||
Other Assets and Liabilities | 0.2% | |||||||
Investments by Country | % of net assets | |||||||
Japan | 25.4% | |||||||
United Kingdom | 15.7% | |||||||
Canada | 10.0% | |||||||
Sweden | 8.6% | |||||||
Germany | 7.9% | |||||||
Australia | 7.6% | |||||||
Switzerland | 4.2% | |||||||
Italy | 3.5% | |||||||
France | 2.9% | |||||||
Hong Kong | 2.6% | |||||||
Israel | 2.4% | |||||||
Netherlands | 2.2% | |||||||
Finland | 2.0% | |||||||
Other Countries | 4.4% | |||||||
Cash and Equivalents* | 0.6% | |||||||
*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, 2019 to May 31, 2020.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value 12/1/19 | Ending Account Value 5/31/20 | Expenses Paid
During Period(1)
12/1/19 - 5/31/20 | Annualized
Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $990.20 | $7.36 | 1.48% | ||||||||||
G Class | $1,000 | $997.60 | $0.05 | 0.01% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,017.60 | $7.47 | 1.48% | ||||||||||
G Class | $1,000 | $1,024.95 | $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 183, the number of days in the most recent fiscal half-year, divided by 366, 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, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.3% | ||||||||
Australia — 7.6% | ||||||||
Afterpay Ltd.(1) | 70,393 | $ | 2,237,206 | |||||
Breville Group Ltd. | 130,440 | 1,919,185 | ||||||
carsales.com Ltd. | 164,766 | 1,752,934 | ||||||
Magellan Financial Group Ltd. | 85,128 | 3,323,947 | ||||||
Megaport Ltd.(1) | 175,074 | 1,583,884 | ||||||
NEXTDC Ltd.(1) | 431,212 | 2,633,636 | ||||||
NRW Holdings Ltd. | 2,162,379 | 2,753,231 | ||||||
Saracen Mineral Holdings Ltd.(1) | 1,259,243 | 4,247,323 | ||||||
Seven Group Holdings Ltd. | 376,553 | 4,020,004 | ||||||
24,471,350 | ||||||||
Belgium — 1.2% | ||||||||
Argenx SE(1) | 17,568 | 3,754,431 | ||||||
Canada — 10.0% | ||||||||
Boyd Group Services, Inc. | 16,463 | 2,520,178 | ||||||
BRP, Inc. | 86,456 | 2,993,951 | ||||||
Colliers International Group, Inc. | 59,960 | 3,096,747 | ||||||
Descartes Systems Group, Inc. (The)(1) | 69,754 | 3,325,455 | ||||||
Element Fleet Management Corp. | 393,622 | 2,798,823 | ||||||
FirstService Corp. | 30,411 | 2,826,963 | ||||||
Gibson Energy, Inc. | 125,194 | 1,936,763 | ||||||
Innergex Renewable Energy, Inc. | 113,140 | 1,556,358 | ||||||
Jamieson Wellness, Inc. | 60,346 | 1,455,562 | ||||||
Kinaxis, Inc.(1) | 9,620 | 1,242,142 | ||||||
Parex Resources, Inc.(1) | 224,522 | 2,524,313 | ||||||
TFI International, Inc. | 98,855 | 2,993,974 | ||||||
TMX Group Ltd. | 26,388 | 2,645,029 | ||||||
31,916,258 | ||||||||
Denmark — 1.3% | ||||||||
Netcompany Group A/S(1) | 20,597 | 1,254,643 | ||||||
Royal Unibrew A/S(1) | 36,598 | 2,939,925 | ||||||
4,194,568 | ||||||||
Finland — 2.0% | ||||||||
Huhtamaki Oyj(1) | 100,439 | 4,067,102 | ||||||
Valmet Oyj(1) | 94,078 | 2,452,750 | ||||||
6,519,852 | ||||||||
France — 2.9% | ||||||||
Euronext NV | 32,731 | 3,024,191 | ||||||
Korian SA | 111,947 | 4,037,033 | ||||||
SOITEC(1) | 22,740 | 2,218,025 | ||||||
9,279,249 | ||||||||
Germany — 7.9% | ||||||||
Bechtle AG | 15,037 | 2,632,728 | ||||||
CompuGroup Medical SE | 17,681 | 1,443,874 | ||||||
Evotec SE(1) | 99,641 | 2,669,647 | ||||||
Flatex AG(1) | 53,787 | 1,864,984 |
4
Shares | Value | |||||||
HelloFresh SE(1) | 71,196 | $ | 2,901,978 | |||||
MorphoSys AG(1) | 34,454 | 4,458,735 | ||||||
Sixt SE | 9,994 | 798,570 | ||||||
Stroeer SE & Co. KGaA | 41,939 | 3,044,345 | ||||||
TeamViewer AG(1) | 78,846 | 4,016,718 | ||||||
Varta AG(1) | 15,106 | 1,550,039 | ||||||
25,381,618 | ||||||||
Hong Kong — 2.6% | ||||||||
Ausnutria Dairy Corp. Ltd.(1) | 1,561,000 | 3,151,860 | ||||||
Man Wah Holdings Ltd. | 2,777,600 | 2,170,559 | ||||||
Minth Group Ltd. | 1,110,000 | 3,045,156 | ||||||
8,367,575 | ||||||||
Israel — 2.4% | ||||||||
AudioCodes Ltd. | 78,380 | 2,872,627 | ||||||
Kornit Digital Ltd.(1) | 31,581 | 1,476,412 | ||||||
Nova Measuring Instruments Ltd.(1) | 69,619 | 3,320,826 | ||||||
7,669,865 | ||||||||
Italy — 3.5% | ||||||||
Amplifon SpA(1) | 80,864 | 2,252,436 | ||||||
Falck Renewables SpA | 661,974 | 3,976,059 | ||||||
FinecoBank Banca Fineco SpA(1) | 282,586 | 3,316,258 | ||||||
Pirelli & C SpA(1) | 345,609 | 1,554,242 | ||||||
11,098,995 | ||||||||
Japan — 25.4% | ||||||||
Anritsu Corp. | 179,300 | 3,536,275 | ||||||
Ariake Japan Co. Ltd. | 16,600 | 1,151,862 | ||||||
Cosmos Pharmaceutical Corp. | 15,200 | 2,182,094 | ||||||
GMO Payment Gateway, Inc. | 17,600 | 1,982,597 | ||||||
Harmonic Drive Systems, Inc. | 75,200 | 4,347,246 | ||||||
IR Japan Holdings Ltd. | 33,500 | 2,975,980 | ||||||
Japan Elevator Service Holdings Co. Ltd. | 85,600 | 2,643,550 | ||||||
Kakaku.com, Inc. | 101,900 | 2,468,245 | ||||||
Kobe Bussan Co. Ltd. | 62,400 | 3,233,357 | ||||||
Lasertec Corp. | 52,400 | 4,311,567 | ||||||
Menicon Co. Ltd. | 34,200 | 1,740,417 | ||||||
MonotaRO Co. Ltd. | 72,200 | 2,624,741 | ||||||
Nabtesco Corp. | 148,700 | 4,623,064 | ||||||
Nihon Kohden Corp. | 91,700 | 3,060,119 | ||||||
Nihon M&A Center, Inc. | 94,000 | 3,781,261 | ||||||
Nippon Gas Co. Ltd. | 101,700 | 4,030,334 | ||||||
Nissan Chemical Corp. | 93,100 | 4,114,700 | ||||||
Orix JREIT, Inc. | 1,192 | 1,726,211 | ||||||
Park24 Co. Ltd. | 154,700 | 3,006,793 | ||||||
PeptiDream, Inc.(1) | 36,100 | 1,621,187 | ||||||
SCREEN Holdings Co. Ltd. | 60,100 | 2,697,242 | ||||||
Seria Co. Ltd. | 64,400 | 2,065,686 |
5
Shares | Value | |||||||
SHIFT, Inc.(1) | 35,700 | $ | 3,376,696 | |||||
SHO-BOND Holdings Co. Ltd. | 100,900 | 4,671,746 | ||||||
Topcon Corp. | 39,700 | 348,806 | ||||||
UT Group Co. Ltd.(1) | 169,300 | 3,181,182 | ||||||
Zenkoku Hosho Co. Ltd. | 96,400 | 3,713,643 | ||||||
Zeon Corp. | 229,300 | 2,210,520 | ||||||
81,427,121 | ||||||||
Netherlands — 2.2% | ||||||||
ASM International NV | 25,727 | 3,007,864 | ||||||
Basic-Fit NV(1) | 12,191 | 310,678 | ||||||
IMCD NV | 38,807 | 3,671,333 | ||||||
6,989,875 | ||||||||
Norway — 1.0% | ||||||||
Bakkafrost P/F(1) | 35,068 | 2,190,129 | ||||||
Subsea 7 SA(1) | 179,858 | 1,039,366 | ||||||
3,229,495 | ||||||||
Singapore — 0.9% | ||||||||
Mapletree Industrial Trust | 1,483,900 | 2,866,056 | ||||||
Sweden — 8.5% | ||||||||
AAK AB(1) | 142,910 | 2,608,274 | ||||||
Beijer Ref AB | 76,355 | 2,271,183 | ||||||
Embracer Group AB(1) | 200,900 | 2,448,935 | ||||||
Fastighets AB Balder, B Shares(1) | 74,330 | 3,048,980 | ||||||
Lifco AB, B Shares | 39,764 | 2,438,716 | ||||||
Lindab International AB | 211,671 | 2,147,937 | ||||||
Loomis AB, B Shares(1) | 116,085 | �� | 2,925,158 | |||||
Samhallsbyggnadsbolaget i Norden AB | 828,884 | 1,670,254 | ||||||
Scandic Hotels Group AB | 270,659 | 1,208,369 | ||||||
Sinch AB(1) | 50,137 | 3,361,037 | ||||||
Stillfront Group AB(1) | 44,779 | 3,292,626 | ||||||
27,421,469 | ||||||||
Switzerland — 4.2% | ||||||||
Cembra Money Bank AG | 32,585 | 3,232,704 | ||||||
SIG Combibloc Group AG(1) | 228,655 | 3,834,004 | ||||||
Tecan Group AG | 10,356 | 3,628,755 | ||||||
Zur Rose Group AG(1) | 13,518 | 2,722,800 | ||||||
13,418,263 | ||||||||
United Kingdom — 15.7% | ||||||||
Avast plc | 816,866 | 5,095,317 | ||||||
Bellway plc | 84,261 | 2,685,411 | ||||||
boohoo Group plc(1) | 724,556 | 3,481,101 | ||||||
Breedon Group plc(1) | 1,355,971 | 1,348,077 | ||||||
Dechra Pharmaceuticals plc | 56,390 | 1,943,641 | ||||||
Diploma plc | 107,459 | 2,440,689 | ||||||
Electrocomponents plc | 426,216 | 3,359,085 | ||||||
Future plc | 184,060 | 3,147,718 | ||||||
Games Workshop Group plc | 46,579 | 4,592,684 |
6
Shares | Value | |||||||
HomeServe plc | 254,650 | $ | 4,093,437 | |||||
Intermediate Capital Group plc | 322,120 | 5,079,510 | ||||||
JD Sports Fashion plc | 492,007 | 4,017,483 | ||||||
Nomad Foods Ltd.(1) | 68,117 | 1,442,718 | ||||||
Serco Group plc(1) | 1,799,458 | 2,830,759 | ||||||
Trainline plc(1) | 484,447 | 2,933,117 | ||||||
UNITE Group plc (The) | 158,859 | 1,708,742 | ||||||
50,199,489 | ||||||||
TOTAL COMMON STOCKS
(Cost $260,322,078) | 318,205,529 | |||||||
RIGHTS — 0.1% | ||||||||
Sweden — 0.1% | ||||||||
Scandic Hotels Group AB(1)
(Cost $466,480) | 270,659 | 536,863 | ||||||
TEMPORARY CASH INVESTMENTS — 0.4% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.25%, 5/15/25 - 2/15/27, valued at $467,348), in a joint trading account at 0.01%, dated 5/29/20, due 6/1/20 (Delivery value $457,883) | 457,883 | |||||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 0.50%, 4/15/24, valued at $752,203), at 0.03%, dated 5/29/20, due 6/1/20 (Delivery value $736,002) | 736,000 | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 1,054 | 1,054 | ||||||
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $1,194,937) | 1,194,937 | |||||||
TOTAL INVESTMENT SECURITIES — 99.8%
(Cost $261,983,495) | 319,937,329 | |||||||
OTHER ASSETS AND LIABILITIES — 0.2% | 587,485 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 320,524,814 |
MARKET SECTOR DIVERSIFICATION | ||||||||
(as a % of net assets) | ||||||||
Industrials | 23.0 | % | ||||||
Information Technology | 18.0 | % | ||||||
Consumer Discretionary | 11.2 | % | ||||||
Health Care | 9.6 | % | ||||||
Financials | 9.0 | % | ||||||
Consumer Staples | 7.4 | % | ||||||
Materials | 6.2 | % | ||||||
Real Estate | 5.2 | % | ||||||
Communication Services | 5.0 | % | ||||||
Utilities | 3.1 | % | ||||||
Energy | 1.7 | % | ||||||
Cash and Equivalents* | 0.6 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS |
(1)Non-income producing.
See Notes to Financial Statements.
7
Statement of Assets and Liabilities |
MAY 31, 2020 (UNAUDITED) | ||||||||
Assets | ||||||||
Investment securities, at value (cost of $261,983,495) | $ | 319,937,329 | ||||||
Receivable for investments sold | 6,349,073 | |||||||
Receivable for capital shares sold | 250 | |||||||
Dividends and interest receivable | 834,208 | |||||||
327,120,860 | ||||||||
Liabilities | ||||||||
Foreign currency overdraft payable, at value (cost of $15,446) | 15,509 | |||||||
Payable for investments purchased | 6,026,746 | |||||||
Payable for capital shares redeemed | 447,678 | |||||||
Accrued management fees | 106,113 | |||||||
6,596,046 | ||||||||
Net Assets | $ | 320,524,814 | ||||||
Net Assets Consist of: | ||||||||
Capital (par value and paid-in surplus) | $ | 292,072,216 | ||||||
Distributable earnings | 28,452,598 | |||||||
$ | 320,524,814 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $92,756,888 | 8,975,447 | $10.33 | ||||||||
G Class, $0.01 Par Value | $227,767,926 | 21,871,159 | $10.41 |
See Notes to Financial Statements.
8
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) | ||||||||
Investment Income (Loss) | ||||||||
Income: | ||||||||
Dividends (net of foreign taxes withheld of $165,092) | $ | 1,584,256 | ||||||
Securities lending, net | 40,705 | |||||||
Interest | 11,211 | |||||||
1,636,172 | ||||||||
Expenses: | ||||||||
Management fees | 1,801,820 | |||||||
Directors' fees and expenses | 4,777 | |||||||
Other expenses | 8,322 | |||||||
1,814,919 | ||||||||
Fees waived - G Class | (1,176,055) | |||||||
638,864 | ||||||||
Net investment income (loss) | 997,308 | |||||||
Realized and Unrealized Gain (Loss) | ||||||||
Net realized gain (loss) on: | ||||||||
Investment transactions | (2,800,036) | |||||||
Foreign currency translation transactions | 3,234 | |||||||
(2,796,802) | ||||||||
Change in net unrealized appreciation (depreciation) on: | ||||||||
Investments | 6,165,462 | |||||||
Translation of assets and liabilities in foreign currencies | 12,628 | |||||||
6,178,090 | ||||||||
Net realized and unrealized gain (loss) | 3,381,288 | |||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 4,378,596 |
See Notes to Financial Statements.
9
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2019 | ||||||||||||||
Increase (Decrease) in Net Assets | May 31, 2020 | November 30, 2019 | ||||||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 997,308 | $ | 3,918,676 | ||||||||||
Net realized gain (loss) | (2,796,802) | (18,276,654) | ||||||||||||
Change in net unrealized appreciation (depreciation) | 6,178,090 | 63,120,925 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 4,378,596 | 48,762,947 | ||||||||||||
Distributions to Shareholders | ||||||||||||||
From earnings: | ||||||||||||||
Investor Class | (1,580,340) | (10,045,152) | ||||||||||||
G Class | (7,505,757) | (28,156,452) | ||||||||||||
Decrease in net assets from distributions | (9,086,097) | (38,201,604) | ||||||||||||
Capital Share Transactions | ||||||||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (7,882,482) | 116,453,710 | ||||||||||||
Net increase (decrease) in net assets | (12,589,983) | 127,015,053 | ||||||||||||
Net Assets | ||||||||||||||
Beginning of period | 333,114,797 | 206,099,744 | ||||||||||||
End of period | $ | 320,524,814 | $ | 333,114,797 | ||||||||||
See Notes to Financial Statements.
10
Notes to Financial Statements |
MAY 31, 2020 (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.
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. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
11
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
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.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
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.
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.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
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, 99% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services, which may be provided indirectly through another American Century Investments mutual fund. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The 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.
13
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2020 were $199,239,037 and $216,934,887, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2020 | Year ended November 30, 2019 | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Investor Class/Shares Authorized | 120,000,000 | 120,000,000 | ||||||||||||||||||
Sold | 492,052 | $ | 3,938,077 | 3,003,767 | $ | 30,525,147 | ||||||||||||||
Issued in reinvestment of distributions | 147,695 | 1,580,340 | 1,151,967 | 10,045,152 | ||||||||||||||||
Redeemed | (520,675) | (5,551,493) | (1,553,046) | (15,182,636) | ||||||||||||||||
119,072 | (33,076) | 2,602,688 | 25,387,663 | |||||||||||||||||
G Class/Shares Authorized | 300,000,000 | 300,000,000 | ||||||||||||||||||
Sold | 1,846,304 | 15,297,523 | 10,187,019 | 105,277,042 | ||||||||||||||||
Issued in reinvestment of distributions | 700,818 | 7,505,757 | 3,225,252 | 28,156,452 | ||||||||||||||||
Redeemed | (2,889,489) | (30,652,686) | (4,265,651) | (42,367,447) | ||||||||||||||||
(342,367) | (7,849,406) | 9,146,620 | 91,066,047 | |||||||||||||||||
Net increase (decrease) | (223,295) | $ | (7,882,482) | 11,749,308 | $ | 116,453,710 |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
• Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
• Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||
Investment Securities | |||||||||||
Common Stocks | $ | 9,112,583 | $ | 309,092,946 | — | ||||||
Rights | — | 536,863 | — | ||||||||
Temporary Cash Investments | 1,054 | 1,193,883 | — | ||||||||
$ | 9,113,637 | $ | 310,823,692 | — |
14
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
The fund is owned by a relatively small number of shareholders, and in the event such shareholders redeem, the ongoing operations of the fund may be at risk.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing a significant portion of assets in one country or region 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 | $ | 274,043,505 | |||
Gross tax appreciation of investments | $ | 53,108,854 | |||
Gross tax depreciation of investments | (7,215,030) | ||||
Net tax appreciation (depreciation) of investments | $ | 45,893,824 |
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, 2019, the fund had accumulated short-term capital losses of $(18,974,207), 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.
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 | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $10.61 | (0.02) | (0.08) | (0.10) | (0.18) | — | (0.18) | $10.33 | (0.98)% | 1.48%(4) | (0.37)%(4) | 67% | $92,757 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $10.56 | 0.01 | 1.14 | 1.15 | (0.04) | (1.06) | (1.10) | $10.61 | 13.13% | 1.48% | 0.14% | 133% | $93,941 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.16 | 0.01 | (1.73) | (1.72) | (0.11) | (0.77) | (0.88) | $10.56 | (14.20)% | 1.47% | 0.09% | 140% | $66,042 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $10.77 | 0.05 | (0.07) | (0.02) | (0.34) | — | (0.34) | $10.41 | (0.24)% | 0.01%(4)(6) | 1.10%(4)(6) | 67% | $227,768 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $10.72 | 0.16 | 1.13 | 1.29 | (0.18) | (1.06) | (1.24) | $10.77 | 14.77% | 0.01%(7) | 1.61%(7) | 133% | $239,174 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $13.25 | 0.20 | (1.76) | (1.56) | (0.20) | (0.77) | (0.97) | $10.72 | (12.95)% | 0.00%(8)(9) | 1.56%(8) | 140% | $140,057 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $9.89 | 0.06 | 3.32 | 3.38 | (0.02) | — | (0.02) | $13.25 | 34.20% | 0.80%(10) | 0.58%(10) | 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, 2020 (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 (0.02)%, 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 1.13% and 0.49%, respectively.
(8)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 1.12% and 0.44%, respectively.
(9)Ratio was less than 0.005%.
(10)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.
Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2018 through December 31, 2019. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
18
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 American Century Investments’ website at americancentury.com/proxy 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 americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange
Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on
Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its
fiscal year available on its website at americancentury.com and, upon request, by calling
1-800-345-2021.
19
Notes |
20
Notes |
21
Notes |
22
Notes |
23
Notes |
24
![]() | |||||||||||
Contact Us | americancentury.com | ||||||||||
Automated Information Line | 1-800-345-8765 | ||||||||||
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | ||||||||||
Investors Using Advisors | 1-800-378-9878 | ||||||||||
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | ||||||||||
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | ||||||||||
Telecommunications Relay Service for the Deaf | 711 | ||||||||||
American Century 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. | |||||||||||
©2020 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92628 2007 |
![image291.jpg](https://capedge.com/proxy/N-CSRS/0000872825-20-000087/image291.jpg)
Semiannual Report | |||||
May 31, 2020 | |||||
NT International Value Fund | |||||
Investor Class (ANTVX) | |||||
G Class (ANTYX) |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.
You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Table of Contents |
Fund Characteristics | |||||
Shareholder Fee Example | |||||
Schedule of Investments | |||||
Statement of Assets and Liabilities | |||||
Statement of Operations | |||||
Statement of Changes in Net Assets | |||||
Notes to Financial Statements | |||||
Financial Highlights | |||||
Liquidity Risk Management Program | |||||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Fund Characteristics |
MAY 31, 2020 | ||||||||
Top Ten Holdings | % of net assets | |||||||
GlaxoSmithKline plc | 2.4% | |||||||
Rio Tinto plc | 2.3% | |||||||
Royal Dutch Shell plc, B Shares | 2.2% | |||||||
Iberdrola SA | 2.1% | |||||||
iShares MSCI EAFE ETF | 2.0% | |||||||
TOTAL SA | 2.0% | |||||||
Toyota Motor Corp. | 1.7% | |||||||
HSBC Holdings plc | 1.6% | |||||||
Zurich Insurance Group AG | 1.6% | |||||||
BHP Group plc | 1.6% | |||||||
Types of Investments in Portfolio | % of net assets | |||||||
Common Stocks | 92.2% | |||||||
Exchange-Traded Funds | 2.5% | |||||||
Total Equity Exposure | 94.7% | |||||||
Temporary Cash Investments | 4.8% | |||||||
Other Assets and Liabilities | 0.5% | |||||||
Investments by Country | % of net assets | |||||||
Japan | 25.0% | |||||||
United Kingdom | 17.4% | |||||||
France | 9.4% | |||||||
Germany | 7.4% | |||||||
Switzerland | 5.8% | |||||||
Australia | 4.5% | |||||||
Sweden | 4.3% | |||||||
Spain | 3.9% | |||||||
Singapore | 2.5% | |||||||
Finland | 2.4% | |||||||
Italy | 2.3% | |||||||
Hong Kong | 2.3% | |||||||
Other Countries | 5.0% | |||||||
Exchange-Traded Funds* | 2.5% | |||||||
Cash and Equivalents** | 5.3% | |||||||
*Category may increase exposure to the countries indicated. The Schedule of Investments provides additional information on the fund's portfolio holdings. | ||||||||
**Includes temporary cash investments and other assets and liabilities. |
2
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2019 to May 31, 2020.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value 12/1/19 | Ending Account Value 5/31/20 | Expenses Paid
During Period(1)
12/1/19 - 5/31/20 |
Annualized
Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $889.00 | $6.09 | 1.29% | ||||||||||
G Class | $1,000 | $895.20 | $0.05 | 0.01% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,018.55 | $6.51 | 1.29% | ||||||||||
G Class | $1,000 | $1,024.95 | $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 183, the number of days in the most recent fiscal half-year, divided by 366, 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, 2020 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 92.2% | ||||||||
Australia — 4.5% | ||||||||
AGL Energy Ltd. | 526,114 | $ | 5,844,885 | |||||
Aristocrat Leisure Ltd. | 191,143 | 3,240,137 | ||||||
Australia & New Zealand Banking Group Ltd. | 686,864 | 8,080,178 | ||||||
BlueScope Steel Ltd. | 133,570 | 970,388 | ||||||
CIMIC Group Ltd. | 135,976 | 2,264,380 | ||||||
Commonwealth Bank of Australia | 46,945 | 1,970,767 | ||||||
Fortescue Metals Group Ltd. | 935,884 | 8,587,260 | ||||||
Santos Ltd. | 148,313 | 523,434 | ||||||
31,481,429 | ||||||||
Austria — 0.5% | ||||||||
ANDRITZ AG(1) | 69,216 | 2,600,960 | ||||||
Raiffeisen Bank International AG | 40,737 | 752,420 | ||||||
3,353,380 | ||||||||
Belgium — 0.4% | ||||||||
KBC Group NV | 41,495 | 2,179,330 | ||||||
Telenet Group Holding NV | 21,745 | 893,129 | ||||||
3,072,459 | ||||||||
Denmark — 0.7% | ||||||||
Novo Nordisk A/S, B Shares | 18,756 | 1,222,833 | ||||||
Pandora A/S | 68,835 | 3,436,945 | ||||||
4,659,778 | ||||||||
Finland — 2.4% | ||||||||
Fortum Oyj | 76,848 | 1,474,524 | ||||||
Kone Oyj, B Shares | 128,577 | 8,631,232 | ||||||
Orion Oyj, Class B | 121,794 | 6,517,851 | ||||||
16,623,607 | ||||||||
France — 9.4% | ||||||||
BNP Paribas SA(1) | 275,891 | 9,951,355 | ||||||
Bouygues SA(1) | 33,198 | 1,020,058 | ||||||
CNP Assurances(1) | 56,317 | 595,063 | ||||||
Eiffage SA(1) | 28,455 | 2,603,180 | ||||||
L'Oreal SA | 18,908 | 5,520,937 | ||||||
Legrand SA | 105,460 | 7,204,687 | ||||||
Peugeot SA(1) | 391,473 | 5,603,402 | ||||||
Safran SA(1) | 32,755 | 3,142,573 | ||||||
Sanofi | 51,668 | 5,038,953 | ||||||
Schneider Electric SE | 34,198 | 3,411,663 | ||||||
Societe Generale SA(1) | 83,284 | 1,232,500 | ||||||
TOTAL SA | 367,793 | 13,828,471 | ||||||
Valeo SA | 218,945 | 5,417,390 | ||||||
Vinci SA | 20,328 | 1,884,871 | ||||||
66,455,103 | ||||||||
Germany — 7.4% | ||||||||
adidas AG(1) | 9,637 | 2,527,135 | ||||||
Allianz SE | 56,788 | 10,304,335 |
4
Shares | Value | |||||||
Aroundtown SA | 132,926 | $ | 730,875 | |||||
Bayer AG | 32,319 | 2,158,816 | ||||||
Brenntag AG | 75,397 | 3,953,960 | ||||||
Commerzbank AG(1) | 181,861 | 709,447 | ||||||
Continental AG | 62,079 | 6,073,532 | ||||||
Deutsche Post AG(1) | 64,106 | 1,985,929 | ||||||
GEA Group AG | 258,763 | 7,680,607 | ||||||
Hannover Rueck SE | 11,372 | 1,824,647 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG | 22,902 | 5,199,613 | ||||||
Porsche Automobil Holding SE, Preference Shares | 53,433 | 2,889,080 | ||||||
RWE AG | 57,352 | 1,889,503 | ||||||
Siemens AG | 41,141 | 4,490,708 | ||||||
52,418,187 | ||||||||
Hong Kong — 2.3% | ||||||||
BOC Hong Kong Holdings Ltd. | 431,000 | 1,209,716 | ||||||
Galaxy Entertainment Group Ltd. | 482,000 | 3,288,052 | ||||||
Hang Seng Bank Ltd. | 295,800 | 4,512,540 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 31,100 | 1,088,146 | ||||||
Sands China Ltd. | 1,613,200 | 6,343,776 | ||||||
16,442,230 | ||||||||
Ireland — 0.4% | ||||||||
Bank of Ireland Group plc(1) | 1,497,829 | 2,707,608 | ||||||
Italy — 2.3% | ||||||||
Enel SpA | 810,873 | 6,239,741 | ||||||
Ferrari NV | 50,905 | 8,622,151 | ||||||
Fiat Chrysler Automobiles NV(1) | 193,701 | 1,717,890 | ||||||
16,579,782 | ||||||||
Japan — 25.0% | ||||||||
ABC-Mart, Inc. | 95,000 | 5,778,031 | ||||||
Amada Co. Ltd. | 749,000 | 6,688,315 | ||||||
Astellas Pharma, Inc. | 440,700 | 7,834,193 | ||||||
Bandai Namco Holdings, Inc. | 40,700 | 2,266,877 | ||||||
Brother Industries Ltd. | 407,600 | 7,687,114 | ||||||
Chugai Pharmaceutical Co. Ltd. | 13,400 | 1,977,506 | ||||||
Honda Motor Co. Ltd. | 129,400 | 3,347,564 | ||||||
Hoya Corp. | 14,800 | 1,389,167 | ||||||
ITOCHU Corp. | 396,100 | 8,501,479 | ||||||
KDDI Corp. | 297,500 | 8,663,063 | ||||||
Mitsubishi Chemical Holdings Corp. | 279,900 | 1,649,381 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 1,293,500 | 5,337,887 | ||||||
Nexon Co. Ltd. | 169,000 | 3,523,613 | ||||||
Nintendo Co. Ltd. | 15,300 | 6,183,586 | ||||||
Nitori Holdings Co. Ltd. | 35,100 | 6,366,323 | ||||||
NTT DOCOMO, Inc. | 340,100 | 9,301,214 | ||||||
Recruit Holdings Co. Ltd. | 68,800 | 2,373,746 | ||||||
Santen Pharmaceutical Co. Ltd. | 165,200 | 3,052,039 | ||||||
Sekisui House Ltd. | 446,200 | 8,507,016 | ||||||
Shin-Etsu Chemical Co. Ltd. | 58,800 | 6,899,679 | ||||||
Shionogi & Co. Ltd. | 131,900 | 7,793,570 | ||||||
Showa Denko KK | 74,700 | 1,787,936 | ||||||
Softbank Corp. | 87,000 | 1,102,932 |
5
Shares | Value | |||||||
SoftBank Group Corp. | 118,800 | $ | 5,335,949 | |||||
Sony Corp. | 98,500 | 6,289,974 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 206,500 | 5,982,583 | ||||||
Sundrug Co. Ltd. | 71,500 | 2,408,988 | ||||||
Takeda Pharmaceutical Co. Ltd. | 103,600 | 4,033,941 | ||||||
Toho Gas Co. Ltd. | 35,300 | 1,736,573 | ||||||
Tokyo Electron Ltd. | 34,400 | 6,876,809 | ||||||
Toyota Motor Corp. | 190,200 | 11,933,787 | ||||||
Trend Micro, Inc. | 49,300 | 2,711,837 | ||||||
Tsuruha Holdings, Inc. | 32,100 | 4,743,947 | ||||||
Welcia Holdings Co. Ltd. | 81,500 | 6,831,096 | ||||||
176,897,715 | ||||||||
Netherlands — 1.0% | ||||||||
Koninklijke DSM NV | 17,115 | 2,196,599 | ||||||
NN Group NV | 159,486 | 4,943,523 | ||||||
7,140,122 | ||||||||
New Zealand — 1.5% | ||||||||
a2 Milk Co. Ltd.(1) | 548,599 | 6,485,566 | ||||||
Meridian Energy Ltd. | 1,388,753 | 4,116,513 | ||||||
10,602,079 | ||||||||
Norway — 0.5% | ||||||||
Aker BP ASA | 218,123 | 3,527,206 | ||||||
Equinor ASA | 22,813 | 333,051 | ||||||
3,860,257 | ||||||||
Singapore — 2.5% | ||||||||
DBS Group Holdings Ltd. | 187,500 | 2,593,504 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 996,500 | 6,058,902 | ||||||
Singapore Telecommunications Ltd. | 1,894,600 | 3,349,974 | ||||||
United Overseas Bank Ltd. | 398,300 | 5,517,053 | ||||||
17,519,433 | ||||||||
Spain — 3.9% | ||||||||
Banco Bilbao Vizcaya Argentaria SA | 2,309,511 | 7,209,832 | ||||||
Banco Santander SA | 181,447 | 412,831 | ||||||
Iberdrola SA | 1,386,239 | 14,961,784 | ||||||
Industria de Diseno Textil SA | 95,626 | 2,673,100 | ||||||
Mapfre SA | 607,847 | 1,072,539 | ||||||
Telefonica SA | 315,555 | 1,488,870 | ||||||
27,818,956 | ||||||||
Sweden — 4.3% | ||||||||
Hennes & Mauritz AB, B Shares | 481,828 | 7,313,139 | ||||||
Industrivarden AB, C Shares(1) | 163,638 | 3,653,116 | ||||||
Investor AB, B Shares | 135,250 | 7,226,401 | ||||||
Kinnevik AB, B Shares | 378,929 | 9,577,962 | ||||||
Lundin Energy AB | 104,273 | 2,526,543 | ||||||
30,297,161 | ||||||||
6
Shares | Value | |||||||
Switzerland — 5.8% | ||||||||
Geberit AG | 14,436 | $ | 7,040,112 | |||||
Kuehne + Nagel International AG(1) | 54,538 | 7,882,778 | ||||||
Novartis AG | 37,880 | 3,283,802 | ||||||
Partners Group Holding AG | 5,383 | 4,473,035 | ||||||
Roche Holding AG | 17,170 | 5,960,118 | ||||||
UBS Group AG(1) | 145,344 | 1,566,159 | ||||||
Zurich Insurance Group AG | 34,467 | 11,151,513 | ||||||
41,357,517 | ||||||||
United Kingdom — 17.4% | ||||||||
3i Group plc | 361,525 | 3,704,677 | ||||||
Barclays plc | 1,319,933 | 1,891,555 | ||||||
BHP Group plc | 564,466 | 11,070,105 | ||||||
BP plc | 1,440,898 | 5,471,505 | ||||||
Burberry Group plc | 98,612 | 1,831,500 | ||||||
Centrica plc | 5,281,578 | 2,394,963 | ||||||
Evraz plc | 1,549,722 | 5,447,952 | ||||||
Ferguson plc | 90,995 | 7,187,356 | ||||||
GlaxoSmithKline plc | 803,262 | 16,635,325 | ||||||
HSBC Holdings plc | 2,475,115 | 11,382,346 | ||||||
JD Sports Fashion plc | 169,723 | 1,385,873 | ||||||
Legal & General Group plc | 3,058,406 | 7,554,943 | ||||||
London Stock Exchange Group plc | 6,754 | 672,450 | ||||||
M&G plc | 428,637 | 744,795 | ||||||
Meggitt plc | 281,849 | 969,419 | ||||||
Rio Tinto plc | 307,002 | 16,455,562 | ||||||
Rolls-Royce Holdings plc(1) | 198,223 | 668,827 | ||||||
Royal Dutch Shell plc, B Shares | 1,030,293 | 15,721,923 | ||||||
Sage Group plc (The) | 329,123 | 2,818,532 | ||||||
St. James's Place plc | 273,293 | 3,116,801 | ||||||
Vodafone Group plc | 3,610,760 | 5,960,041 | ||||||
123,086,450 | ||||||||
TOTAL COMMON STOCKS
(Cost $695,075,660) | 652,373,253 | |||||||
EXCHANGE-TRADED FUNDS — 2.5% | ||||||||
iShares MSCI EAFE ETF | 236,000 | 14,075,040 | ||||||
iShares MSCI Japan ETF | 59,000 | 3,269,190 | ||||||
TOTAL EXCHANGE-TRADED FUNDS
(Cost $18,473,543) | 17,344,230 | |||||||
TEMPORARY CASH INVESTMENTS — 4.8% | ||||||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.25%, 5/15/25 - 2/15/27, valued at $13,296,058), in a joint trading account at 0.01%, dated 5/29/20, due 6/1/20 (Delivery value $13,026,769) | 13,026,758 | |||||||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.125%, 3/31/24, valued at $21,429,056), at 0.03%, dated 5/29/20, due 6/1/20 (Delivery value $21,005,053) | 21,005,000 | |||||||
7
Shares | Value | |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 30,009 | $ | 30,009 | |||||
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $34,061,767) | 34,061,767 | |||||||
TOTAL INVESTMENT SECURITIES — 99.5%
(Cost $747,610,970) | 703,779,250 | |||||||
OTHER ASSETS AND LIABILITIES — 0.5% | 3,814,664 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 707,593,914 |
FUTURES CONTRACTS PURCHASED | ||||||||||||||||||||||||||||||||
Reference Entity | Contracts | Expiration Date | Notional Amount | Underlying Contract Value | Unrealized Appreciation (Depreciation) | |||||||||||||||||||||||||||
MSCI EAFE Index | 264 | June 2020 | $ | 13,200 | $ | 22,777,920 | $ | 3,749,125 |
MARKET SECTOR DIVERSIFICATION | ||||||||
(as a % of net assets) | ||||||||
Financials | 22.3 | % | ||||||
Consumer Discretionary | 15.2 | % | ||||||
Industrials | 12.9 | % | ||||||
Health Care | 9.6 | % | ||||||
Materials | 7.7 | % | ||||||
Communication Services | 6.5 | % | ||||||
Energy | 5.9 | % | ||||||
Utilities | 5.4 | % | ||||||
Consumer Staples | 3.7 | % | ||||||
Information Technology | 2.9 | % | ||||||
Real Estate | 0.1 | % | ||||||
Exchange-Traded Funds | 2.5 | % | ||||||
Cash and Equivalents* | 5.3 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS |
(1) Non-income producing.
See Notes to Financial Statements.
8
Statement of Assets and Liabilities |
MAY 31, 2020 (UNAUDITED) | ||||||||
Assets | ||||||||
Investment securities, at value (cost of $747,610,970) | $ | 703,779,250 | ||||||
Foreign currency holdings, at value (cost of $62,307) | 62,296 | |||||||
Deposits with broker for futures contracts | 2,323,200 | |||||||
Receivable for capital shares sold | 35 | |||||||
Dividends and interest receivable | 5,699,529 | |||||||
711,864,310 | ||||||||
Liabilities | ||||||||
Payable for capital shares redeemed | 4,043,439 | |||||||
Payable for variation margin on futures contracts | 72,600 | |||||||
Accrued management fees | 154,357 | |||||||
4,270,396 | ||||||||
Net Assets | $ | 707,593,914 | ||||||
Net Assets Consist of: | ||||||||
Capital (par value and paid-in surplus) | $ | 859,881,160 | ||||||
Distributable earnings | (152,287,246) | |||||||
$ | 707,593,914 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $147,554,363 | 18,949,560 | $7.79 | ||||||||
G Class, $0.01 Par Value | $560,039,551 | 71,542,610 | $7.83 |
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) | ||||||||
Investment Income (Loss) | ||||||||
Income: | ||||||||
Dividends (net of foreign taxes withheld of $1,182,110) | $ | 12,365,519 | ||||||
Securities lending, net | 58,086 | |||||||
Interest | 29,588 | |||||||
12,453,193 | ||||||||
Expenses: | ||||||||
Management fees | 3,684,254 | |||||||
Directors' fees and expenses | 11,933 | |||||||
Other expenses | 41,663 | |||||||
3,737,850 | ||||||||
Fees waived(1) | (2,671,545) | |||||||
1,066,305 | ||||||||
Net investment income (loss) | 11,386,888 | |||||||
Realized and Unrealized Gain (Loss) | ||||||||
Net realized gain (loss) on: | ||||||||
Investment transactions | (7,102,296) | |||||||
Foreign currency translation transactions | (233,945) | |||||||
(7,336,241) | ||||||||
Change in net unrealized appreciation (depreciation) on: | ||||||||
Investments | (82,825,637) | |||||||
Futures contracts | 3,749,125 | |||||||
Translation of assets and liabilities in foreign currencies | 79,103 | |||||||
(78,997,409) | ||||||||
Net realized and unrealized gain (loss) | (86,333,650) | |||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (74,946,762) |
(1)Amount consists of $7,925 and $2,663,620 for Investor Class and G Class, respectively.
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2020 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2019 | ||||||||||||||
Increase (Decrease) in Net Assets | May 31, 2020 | November 30, 2019 | ||||||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 11,386,888 | $ | 34,108,636 | ||||||||||
Net realized gain (loss) | (7,336,241) | (57,902,807) | ||||||||||||
Change in net unrealized appreciation (depreciation) | (78,997,409) | 59,906,873 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | (74,946,762) | 36,112,702 | ||||||||||||
Distributions to Shareholders | ||||||||||||||
From earnings: | ||||||||||||||
Investor Class | (6,226,904) | (4,559,475) | ||||||||||||
G Class | (29,641,753) | (25,029,348) | ||||||||||||
Decrease in net assets from distributions | (35,868,657) | (29,588,823) | ||||||||||||
Capital Share Transactions | ||||||||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (4,101,175) | (19,624,059) | ||||||||||||
Net increase (decrease) in net assets | (114,916,594) | (13,100,180) | ||||||||||||
Net Assets | ||||||||||||||
Beginning of period | 822,510,508 | 835,610,688 | ||||||||||||
End of period | $ | 707,593,914 | $ | 822,510,508 | ||||||||||
See Notes to Financial Statements.
11
Notes to Financial Statements |
MAY 31, 2020 (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.
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. Exchange-traded futures contracts are valued at the settlement price as provided by the appropriate exchange.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
12
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. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
13
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income 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.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
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, 99% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services, which may be provided indirectly through another American Century Investments mutual fund. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The 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. During the period, the investment advisor agreed to waive 0.01% of the fund’s management fee. The investment advisor expects this waiver to continue until March 31, 2021 and cannot terminate it prior to such date without the approval of the Board of Directors. The investment advisor agreed to waive the G Class’s management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors.
14
The management fee schedule range and the effective annual management fee before and after waiver for each class for the period ended May 31, 2020 are as follows:
Effective Annual Management Fee | ||||||||||||||
Management Fee Schedule Range | Before Waiver | After Waiver | ||||||||||||
Investor Class | 1.100% to 1.300% | 1.29% | 1.28% | |||||||||||
G Class | 0.750% to 0.950% | 0.94% | 0.00% |
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases were $5,650 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, 2020 were $264,436,553 and $310,986,873, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2020 | Year ended November 30, 2019 | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Investor Class/Shares Authorized | 250,000,000 | 250,000,000 | ||||||||||||||||||
Sold | 1,623,638 | $ | 12,336,149 | 3,625,256 | $ | 31,701,431 | ||||||||||||||
Issued in reinvestment of distributions | 688,817 | 6,226,904 | 546,700 | 4,559,475 | ||||||||||||||||
Redeemed | (3,401,377) | (28,853,351) | (8,488,820) | (74,209,312) | ||||||||||||||||
(1,088,922) | (10,290,298) | (4,316,864) | (37,948,406) | |||||||||||||||||
G Class/Shares Authorized | 925,000,000 | 925,000,000 | ||||||||||||||||||
Sold | 7,254,337 | 53,717,154 | 19,857,993 | 175,964,884 | ||||||||||||||||
Issued in reinvestment of distributions | 3,282,586 | 29,641,753 | 3,004,724 | 25,029,348 | ||||||||||||||||
Redeemed | (8,959,396) | (77,169,784) | (20,562,049) | (182,669,885) | ||||||||||||||||
1,577,527 | 6,189,123 | 2,300,668 | 18,324,347 | |||||||||||||||||
Net increase (decrease) | 488,605 | $ | (4,101,175) | (2,016,196) | $ | (19,624,059) |
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.
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 | — | $ | 652,373,253 | — | |||||||
Exchange-Traded Funds | $ | 17,344,230 | — | — | |||||||
Temporary Cash Investments | 30,009 | 34,031,758 | — | ||||||||
$ | 17,374,239 | $ | 686,405,011 | — | |||||||
Other Financial Instruments | |||||||||||
Futures Contracts | $ | 3,749,125 | — | — |
7. Derivative Instruments
Equity Price Risk — The fund is subject to equity price risk in the normal course of pursuing its investment objectives. A fund may enter into futures contracts based on an equity index in order to manage its exposure to changes in market conditions. A fund may purchase futures contracts to gain exposure to increases in market value or sell futures contracts to protect against a decline in market value. Upon entering into a futures contract, a fund is required to deposit either cash or securities in an amount equal to a certain percentage of the contract value (initial margin). Subsequent payments (variation margin) are made or received daily, in cash, by a fund. The variation margin is equal to the daily change in the contract value and is recorded as unrealized gains and losses. A fund recognizes a realized gain or loss when the contract is closed or expires. Net realized and unrealized gains or losses occurring during the holding period of futures contracts are a component of net realized gain (loss) on futures contract transactions and change in net unrealized appreciation (depreciation) on futures contracts, respectively. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. The fund's average notional exposure to equity price risk derivative instruments held during the period was $13,200 futures contracts purchased.
The value of equity price risk derivative instruments as of May 31, 2020, is disclosed on the Statement of Assets and Liabilities as a liability of $72,600 in payable for variation margin on futures contracts.* For the six months ended May 31, 2020, the effect of equity price risk derivative instruments on the Statement of Operations was $3,749,125 in change in net unrealized appreciation (depreciation) on futures contracts.
* Included in the unrealized appreciation (depreciation) on futures contracts as reported in the Schedule of Investments.
8. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund 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.
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The fund is owned by a relatively small number of shareholders, and in the event such shareholders redeem, the ongoing operations of the fund may be at risk.
9. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 759,264,927 | |||
Gross tax appreciation of investments | $ | 42,546,379 | |||
Gross tax depreciation of investments | (98,032,056) | ||||
Net tax appreciation (depreciation) of investments | $ | (55,485,677) |
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, 2019, the fund had accumulated short-term capital losses of $(74,072,365) and accumulated long-term capital losses of $(32,023,648), 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 | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investor Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $9.06 | 0.09 | (1.05) | (0.96) | (0.31) | $7.79 | (11.10)% | 1.29%(4) | 1.30%(4) | 2.14%(4) | 2.13%(4) | 37% | $147,554 | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $9.00 | 0.28 | 0.02 | 0.30 | (0.24) | $9.06 | 3.56% | 1.29% | 1.29% | 3.20% | 3.20% | 82% | $181,458 | |||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $10.53 | 0.25 | (1.47) | (1.22) | (0.31) | $9.00 | (11.95)% | 1.29% | 1.29% | 2.48% | 2.48% | 76% | $219,273 | |||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $8.73 | 0.24 | 1.83 | 2.07 | (0.27) | $10.53 | 24.32% | 1.29% | 1.29% | 2.44% | 2.44% | 79% | $242,242 | |||||||||||||||||||||||||||||||||||||||||||||||||
2016 | $9.24 | 0.25 | (0.56) | (0.31) | (0.20) | $8.73 | (3.42)% | 1.30% | 1.30% | 2.88% | 2.88% | 81% | $201,138 | |||||||||||||||||||||||||||||||||||||||||||||||||
2015(5) | $10.00 | 0.20 | (0.96) | (0.76) | — | $9.24 | (7.60)% | 1.30%(4) | 1.30%(4) | 2.95%(4) | 2.95%(4) | 55% | $194,181 | |||||||||||||||||||||||||||||||||||||||||||||||||
G Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020(3) | $9.16 | 0.14 | (1.04) | (0.90) | (0.43) | $7.83 | (10.48)% | 0.01%(4) | 0.95%(4) | 3.42%(4) | 2.48%(4) | 37% | $560,040 | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | $9.11 | 0.40 | —(6) | 0.40 | (0.35) | $9.16 | 4.77% | 0.00%(7) | 0.94% | 4.49% | 3.55% | 82% | $641,053 | |||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $10.59 | 0.38 | (1.48) | (1.10) | (0.38) | $9.11 | (10.79)% | 0.01% | 0.94% | 3.76% | 2.83% | 76% | $616,338 | |||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $8.75 | 0.29 | 1.84 | 2.13 | (0.29) | $10.59 | 24.99% | 0.69% | 1.04% | 3.04% | 2.69% | 79% | $710,717 | |||||||||||||||||||||||||||||||||||||||||||||||||
2016 | $9.25 | 0.26 | (0.55) | (0.29) | (0.21) | $8.75 | (3.16)% | 1.10% | 1.10% | 3.08% | 3.08% | 81% | $586,173 | |||||||||||||||||||||||||||||||||||||||||||||||||
2015(5) | $10.00 | 0.21 | (0.96) | (0.75) | — | $9.25 | (7.50)% | 1.10%(4) | 1.10%(4) | 3.15%(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, 2020 (unaudited).
(4)Annualized.
(5)March 19, 2015 (fund inception) through November 30, 2015.
(6)Per-share amount was less than $0.005.
(7)Ratio was less than 0.005%.
See Notes to Financial Statements.
Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2018 through December 31, 2019. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
20
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 American Century Investments’ website at americancentury.com/proxy 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 americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange
Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on
Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its
fiscal year available on its website at americancentury.com and, upon request, by calling
1-800-345-2021.
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Notes |
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. | |||||||||||
©2020 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92629 2007 |
ITEM 2. CODE OF ETHICS.
Not applicable for semiannual report filings.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semiannual report filings.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semiannual report filings.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable for semiannual report filings.
ITEM 6. INVESTMENTS.
(a) The schedule of investments is included as part of the report to stockholders filed under Item 1 of this Form.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
During the reporting period, there were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)(1) Not applicable for semiannual report filings.
(a)(2) Separate certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are filed and attached hereto as EX-99.CERT.
(a)(3) Not applicable.
(a)(4) Not applicable.
(b) A certification by the registrant’s chief executive officer and chief financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, is furnished and attached hereto as EX- 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | American Century World Mutual Funds, Inc. | |||||||||||||||||||
By: | /s/ Patrick Bannigan | |||||||||||||||||||
Name: | Patrick Bannigan | |||||||||||||||||||
Title: | President | |||||||||||||||||||
Date: | July 24, 2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Patrick Bannigan | ||||||||||||||||
Name: | Patrick Bannigan | ||||||||||||||||
Title: | President | ||||||||||||||||
(principal executive officer) | |||||||||||||||||
Date: | July 24, 2020 |
By: | /s/ R. Wes Campbell | ||||||||||||||||
Name: | R. Wes Campbell | ||||||||||||||||
Title: | Treasurer and | ||||||||||||||||
Chief Financial Officer | |||||||||||||||||
(principal financial officer) | |||||||||||||||||
Date: | July 24, 2020 |