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) | |||||||||||||||||||
JOHN PAK 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: | 05-31-2022 |
ITEM 1. REPORTS TO STOCKHOLDERS.
(a) Provided under separate cover.
![acihorizblkd50.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/acihorizblkd50.jpg)
Semiannual Report | |||||
May 31, 2022 | |||||
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) | |||||
G Class (ACADX) |
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 |
![image26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image26.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2022. 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.
Soaring Prices, Sharp Volatility Sank Stock Returns
Global investors faced an unusual set of challenges in the six-month period. From soaring inflation and rising interest rates to mounting geopolitical unrest and slowing growth, global stocks struggled amid intense volatility.
Inflation was already at multiyear highs when the reporting period began. This was largely due to massive fiscal and monetary support, escalating energy prices, supply chain breakdowns and labor market shortages. Russia’s invasion of Ukraine in February sent commodity prices even higher, exacerbating existing inflationary pressures and further damaging global supply chains.
By period-end, inflation lingered at a 40-year high in the U.S. and the U.K. and a record high in the eurozone. Most emerging markets also grappled with rising inflation. At the same time, global economic growth slowed dramatically, further complicated by COVID-19-related lockdowns that shut down key manufacturing hubs in China.
The Federal Reserve responded to surging inflation in March, launching a rate-hike campaign and ending its bond-buying program. The Bank of England executed a series of rate hikes, while the European Central Bank said it would end its bond buying in the third quarter.
The combination of accelerating inflation, tighter monetary policy, geopolitical strife and slowing economic growth fueled widespread and sharp market volatility. Global stock returns broadly declined for the six-month period. Developed markets stocks generally fared better than emerging markets stocks, while U.S. stocks underperformed other developed markets.
Staying Disciplined in Uncertain Times
We expect market volatility to linger as investors navigate this complex environment of high inflation, rising interest rates and economic uncertainty. In addition, Russia’s invasion of Ukraine complicates a tense geopolitical backdrop. We will continue to monitor this evolving situation and its implications for our clients and investment exposure.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
![image35.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image35.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2022 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 98.6% | ||||
Rights | —* | ||||
Short-Term Investments | 1.5% | ||||
Other Assets and Liabilities | (0.1)% | ||||
*Category is less than 0.05% of total net assets. | |||||
Top Five Countries | % of net assets | ||||
China | 26.2% | ||||
Taiwan | 16.2% | ||||
South Korea | 13.8% | ||||
India | 9.7% | ||||
Brazil | 6.6% |
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, 2021 to May 31, 2022 (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 12/1/21 | Ending Account Value 5/31/22 | Expenses Paid During Period(1) 12/1/21 - 5/31/22 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $805.90 | $5.67 | 1.26% | ||||||||||
I Class | $1,000 | $807.30 | $4.78 | 1.06% | ||||||||||
Y Class | $1,000 | $808.20 | $4.10 | 0.91% | ||||||||||
A Class | $1,000 | $805.50 | $6.80 | 1.51% | ||||||||||
C Class | $1,000 | $802.70 | $10.16 | 2.26% | ||||||||||
R Class | $1,000 | $804.20 | $7.92 | 1.76% | ||||||||||
R5 Class | $1,000 | $807.40 | $4.78 | 1.06% | ||||||||||
R6 Class | $1,000 | $807.90 | $4.10 | 0.91% | ||||||||||
G Class | $1,000 | $911.80 | $0.02(2) | 0.01% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,018.65 | $6.34 | 1.26% | ||||||||||
I Class | $1,000 | $1,019.65 | $5.34 | 1.06% | ||||||||||
Y Class | $1,000 | $1,020.39 | $4.58 | 0.91% | ||||||||||
A Class | $1,000 | $1,017.40 | $7.59 | 1.51% | ||||||||||
C Class | $1,000 | $1,013.66 | $11.35 | 2.26% | ||||||||||
R Class | $1,000 | $1,016.16 | $8.85 | 1.76% | ||||||||||
R5 Class | $1,000 | $1,019.65 | $5.34 | 1.06% | ||||||||||
R6 Class | $1,000 | $1,020.39 | $4.58 | 0.91% | ||||||||||
G Class | $1,000 | $1,024.88 | $0.05 | 0.01% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
(2)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 61, the number of days in the period from April 1, 2022 (commencement of sale) through May 31, 2022, divided by 365, to reflect the period. Had the class been available for the full period, the expenses paid during the period would have been higher.
5
Schedule of Investments |
MAY 31, 2022 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 98.6% | ||||||||
Brazil — 6.6% | ||||||||
Banco BTG Pactual SA | 7,145,100 | $ | 37,766,023 | |||||
Embraer SA, ADR(1) | 1,545,562 | 16,552,969 | ||||||
Hapvida Participacoes e Investimentos SA | 9,320,700 | 13,120,426 | ||||||
Petro Rio SA(1) | 11,979,300 | 70,047,605 | ||||||
Suzano SA | 1,619,200 | 18,121,903 | ||||||
Vale SA, ADR | 2,353,271 | 42,476,542 | ||||||
WEG SA | 3,737,500 | 19,951,473 | ||||||
218,036,941 | ||||||||
China — 26.2% | ||||||||
Alibaba Group Holding Ltd., ADR(1) | 810,634 | 77,861,396 | ||||||
BYD Co. Ltd., H Shares | 1,899,000 | 67,492,975 | ||||||
China Construction Bank Corp., H Shares | 70,629,000 | 52,358,390 | ||||||
China Education Group Holdings Ltd.(2) | 11,971,000 | 8,266,094 | ||||||
China State Construction International Holdings Ltd. | 15,210,000 | 17,876,179 | ||||||
Chinasoft International Ltd.(1) | 22,036,000 | 20,251,158 | ||||||
Contemporary Amperex Technology Co. Ltd., A Shares | 479,113 | 29,171,289 | ||||||
Country Garden Services Holdings Co. Ltd. | 4,131,000 | 16,334,901 | ||||||
ENN Energy Holdings Ltd. | 2,688,900 | 41,140,255 | ||||||
Ganfeng Lithium Co. Ltd., H Shares | 2,679,600 | 34,345,903 | ||||||
GDS Holdings Ltd., ADR(1) | 437,990 | 12,259,340 | ||||||
Industrial & Commercial Bank of China Ltd., H Shares | 33,521,740 | 20,073,500 | ||||||
JD.com, Inc., Class A | 1,029,642 | 28,923,016 | ||||||
Kweichow Moutai Co. Ltd., A Shares | 136,010 | 36,658,849 | ||||||
Li Ning Co. Ltd. | 3,220,500 | 25,126,899 | ||||||
Meituan, Class B(1) | 1,161,000 | 27,242,983 | ||||||
NIO, Inc., ADR(1) | 982,228 | 17,080,945 | ||||||
Ping An Insurance Group Co. of China Ltd., H Shares | 3,155,000 | 20,200,920 | ||||||
Shenzhou International Group Holdings Ltd. | 1,365,600 | 18,748,095 | ||||||
Sungrow Power Supply Co. Ltd., A Shares | 1,774,699 | 21,198,860 | ||||||
Tencent Holdings Ltd. | 3,489,500 | 159,534,229 | ||||||
Wuxi Biologics Cayman, Inc.(1) | 5,500,500 | 40,674,043 | ||||||
Yantai Jereh Oilfield Services Group Co. Ltd., A Shares | 8,592,129 | 51,574,515 | ||||||
Yunnan Energy New Material Co. Ltd., A Shares | 612,324 | 19,890,232 | ||||||
864,284,966 | ||||||||
India — 9.7% | ||||||||
Bajaj Finance Ltd. | 401,092 | 31,189,895 | ||||||
Bata India Ltd. | 864,794 | 20,817,947 | ||||||
HDFC Bank Ltd. | 3,841,475 | 68,190,056 | ||||||
Hindalco Industries Ltd. | 4,320,356 | 23,493,522 | ||||||
ICICI Bank Ltd., ADR | 3,497,842 | 67,333,459 | ||||||
Infosys Ltd., ADR | 1,652,640 | 31,168,790 | ||||||
Reliance Industries Ltd. | 1,216,511 | 40,982,381 | ||||||
Tata Consultancy Services Ltd. | 881,599 | 38,016,090 | ||||||
321,192,140 | ||||||||
Indonesia — 3.3% | ||||||||
Bank Rakyat Indonesia (Persero) Tbk PT | 222,196,500 | 70,386,523 |
6
Shares | Value | |||||||
Telekomunikasi Indonesia Persero Tbk PT | 131,701,500 | $ | 38,882,445 | |||||
109,268,968 | ||||||||
Luxembourg — 0.6% | ||||||||
Ternium SA, ADR | 468,957 | 20,620,039 | ||||||
Malaysia — 2.1% | ||||||||
CIMB Group Holdings Bhd | 50,919,809 | 59,783,926 | ||||||
Press Metal Aluminium Holdings Bhd | 8,127,500 | 10,269,812 | ||||||
70,053,738 | ||||||||
Mexico — 3.5% | ||||||||
America Movil SAB de CV, Class L ADR | 1,364,346 | 29,115,143 | ||||||
Grupo Financiero Banorte SAB de CV | 8,694,204 | 56,206,071 | ||||||
Wal-Mart de Mexico SAB de CV | 8,378,293 | 30,983,571 | ||||||
116,304,785 | ||||||||
Peru — 0.8% | ||||||||
Credicorp Ltd. | 177,378 | 24,900,324 | ||||||
Philippines — 0.9% | ||||||||
Ayala Land, Inc. | 51,687,880 | 29,158,206 | ||||||
Russia(3)† | ||||||||
Magnit PJSC | 267,484 | 2,579 | ||||||
Novatek PJSC, GDR | 110,040 | 7,153 | ||||||
Yandex NV, A Shares(1) | 456,739 | 60,746 | ||||||
70,478 | ||||||||
Saudi Arabia — 3.8% | ||||||||
Al Rajhi Bank | 3,002,097 | 78,974,833 | ||||||
Alinma Bank | 4,664,138 | 47,801,441 | ||||||
126,776,274 | ||||||||
South Africa — 3.9% | ||||||||
Capitec Bank Holdings Ltd. | 415,554 | 59,788,408 | ||||||
Exxaro Resources Ltd. | 2,140,170 | 30,353,438 | ||||||
Kumba Iron Ore Ltd. | 515,142 | 19,398,980 | ||||||
Naspers Ltd., N Shares | 181,164 | 19,734,367 | ||||||
129,275,193 | ||||||||
South Korea — 13.8% | ||||||||
Ecopro BM Co. Ltd.(2) | 116,100 | 47,216,556 | ||||||
Hana Financial Group, Inc. | 960,898 | 38,429,477 | ||||||
Hyundai Motor Co. | 138,029 | 21,032,850 | ||||||
Iljin Materials Co. Ltd. | 211,233 | 15,319,981 | ||||||
NAVER Corp. | 102,731 | 23,787,310 | ||||||
Samsung Biologics Co. Ltd.(1) | 93,707 | 63,951,925 | ||||||
Samsung Electronics Co. Ltd. | 2,847,774 | 154,856,086 | ||||||
Samsung SDI Co. Ltd. | 88,988 | 41,151,609 | ||||||
SK Hynix, Inc. | 551,652 | 47,813,461 | ||||||
453,559,255 | ||||||||
Taiwan — 16.2% | ||||||||
ASPEED Technology, Inc. | 217,000 | 17,250,444 | ||||||
Chailease Holding Co. Ltd. | 8,047,463 | 61,921,734 | ||||||
E Ink Holdings, Inc. | 5,529,000 | 38,454,158 | ||||||
E.Sun Financial Holding Co. Ltd. | 29,048,000 | 30,441,604 | ||||||
Far EasTone Telecommunications Co. Ltd. | 6,760,000 | 18,506,452 | ||||||
Formosa Plastics Corp. | 9,387,000 | 33,851,613 | ||||||
momo.com, Inc. | 379,000 | 10,817,041 | ||||||
Silergy Corp. | 134,000 | 13,770,972 |
7
Shares | Value | |||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 15,375,713 | $ | 290,768,956 | |||||
Unimicron Technology Corp. | 2,546,000 | 18,686,658 | ||||||
534,469,632 | ||||||||
Thailand — 5.2% | ||||||||
CP ALL PCL | 18,985,600 | 36,722,975 | ||||||
Kasikornbank PCL | 11,221,300 | 48,146,834 | ||||||
Minor International PCL(1) | 9,054,500 | 9,249,522 | ||||||
PTT Exploration & Production PCL | 15,481,000 | 76,219,546 | ||||||
170,338,877 | ||||||||
Turkey — 0.4% | ||||||||
BIM Birlesik Magazalar AS | 2,681,079 | 13,477,734 | ||||||
United Arab Emirates — 1.0% | ||||||||
Emaar Properties PJSC | 21,311,883 | 33,097,339 | ||||||
United States — 0.6% | ||||||||
MercadoLibre, Inc.(1) | 24,130 | 18,963,284 | ||||||
TOTAL COMMON STOCKS (Cost $3,024,200,303) | 3,253,848,173 | |||||||
RIGHTS† | ||||||||
South Korea† | ||||||||
Ecopro BM Co. Ltd.(1)(2) (Cost $—) | 6,551 | 818,081 | ||||||
SHORT-TERM INVESTMENTS — 1.5% | ||||||||
Money Market Funds — 0.3% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 7,656,984 | 7,656,984 | ||||||
Repurchase Agreements — 1.2% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.50% - 4.375%, 2/15/38 - 2/15/45, valued at $3,731,884), in a joint trading account at 0.74%, dated 5/31/22, due 6/1/22 (Delivery value $3,659,768) | 3,659,693 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 4.50%, 5/15/38, valued at $37,424,834), at 0.75%, dated 5/31/22, due 6/1/22 (Delivery value $36,691,764) | 36,691,000 | |||||||
40,350,693 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $48,007,677) | 48,007,677 | |||||||
TOTAL INVESTMENT SECURITIES — 100.1% (Cost $3,072,207,980) | 3,302,673,931 | |||||||
OTHER ASSETS AND LIABILITIES — (0.1)% | (2,569,179) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 3,300,104,752 |
8
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Financials | 26.5% | ||||
Information Technology | 22.6% | ||||
Consumer Discretionary | 11.3% | ||||
Communication Services | 8.2% | ||||
Energy | 8.1% | ||||
Materials | 6.7% | ||||
Industrials | 4.5% | ||||
Consumer Staples | 3.5% | ||||
Health Care | 3.5% | ||||
Real Estate | 2.4% | ||||
Utilities | 1.3% | ||||
Short-Term Investments | 1.5% | ||||
Other Assets and Liabilities | (0.1)% |
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
ADR | - | American Depositary Receipt | ||||||
GDR | - | Global Depositary Receipt |
†Category is less than 0.05% of total net assets.
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $29,200,056. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers. At the period end, the aggregate value of the collateral held by the fund was $31,361,629, all of which is securities collateral.
(3)Securities may be subject to resale, redemption or transferability restrictions.
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2022 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $3,072,207,980) — including $29,200,056 of securities on loan | $ | 3,302,673,931 | |||
Foreign currency holdings, at value (cost of $2,513,008) | 2,513,008 | ||||
Receivable for investments sold | 3,443,711 | ||||
Receivable for capital shares sold | 2,413,195 | ||||
Dividends and interest receivable | 4,092,338 | ||||
Securities lending receivable | 77,221 | ||||
Other assets | 59,004 | ||||
3,315,272,408 | |||||
Liabilities | |||||
Payable for investments purchased | 8,689,591 | ||||
Payable for capital shares redeemed | 2,671,155 | ||||
Accrued management fees | 2,159,770 | ||||
Distribution and service fees payable | 31,052 | ||||
Accrued foreign taxes | 1,616,088 | ||||
15,167,656 | |||||
Net Assets | $ | 3,300,104,752 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 3,450,784,240 | |||
Distributable earnings | (150,679,488) | ||||
$ | 3,300,104,752 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $434,481,593 | 39,813,882 | $10.91 | ||||||||
I Class, $0.01 Par Value | $1,188,692,532 | 106,234,097 | $11.19 | ||||||||
Y Class, $0.01 Par Value | $39,076,210 | 3,486,978 | $11.21 | ||||||||
A Class, $0.01 Par Value | $67,698,752 | 6,429,602 | $10.53* | ||||||||
C Class, $0.01 Par Value | $17,543,003 | 1,842,899 | $9.52 | ||||||||
R Class, $0.01 Par Value | $6,264,777 | 592,123 | $10.58 | ||||||||
R5 Class, $0.01 Par Value | $10,575,552 | 944,296 | $11.20 | ||||||||
R6 Class, $0.01 Par Value | $734,185,534 | 65,623,170 | $11.19 | ||||||||
G Class, $0.01 Par Value | $801,586,799 | 71,360,630 | $11.23 |
*Maximum offering price $11.17 (net asset value divided by 0.9425).
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $2,929,442) | $ | 30,110,658 | |||
Securities lending, net | 137,937 | ||||
Interest | 16,494 | ||||
30,265,089 | |||||
Expenses: | |||||
Management fees | 16,104,783 | ||||
Distribution and service fees: | |||||
A Class | 101,758 | ||||
C Class | 107,035 | ||||
R Class | 17,586 | ||||
Directors' fees and expenses | 33,602 | ||||
Other expenses | 51,651 | ||||
16,416,415 | |||||
Fees waived - G Class | (701,681) | ||||
15,714,734 | |||||
Net investment income (loss) | 14,550,355 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions (net of foreign tax expenses paid (refunded) of $(3,834)) | (125,706,821) | ||||
Foreign currency translation transactions | (2,554,546) | ||||
(128,261,367) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments (includes (increase) decrease in accrued foreign taxes of $3,894,982) | (514,298,398) | ||||
Translation of assets and liabilities in foreign currencies | 95,983 | ||||
(514,202,415) | |||||
Net realized and unrealized gain (loss) | (642,463,782) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (627,913,427) |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2021 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2022 | November 30, 2021 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 14,550,355 | $ | 17,543,192 | ||||
Net realized gain (loss) | (128,261,367) | 143,688,790 | ||||||
Change in net unrealized appreciation (depreciation) | (514,202,415) | (167,631,110) | ||||||
Net increase (decrease) in net assets resulting from operations | (627,913,427) | (6,399,128) | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (4,433,245) | (3,436,076) | ||||||
I Class | (15,057,238) | (12,395,337) | ||||||
Y Class | (535,793) | (317,596) | ||||||
A Class | (538,424) | (298,238) | ||||||
R Class | (31,292) | (3,177) | ||||||
R5 Class | (121,944) | (30,070) | ||||||
R6 Class | (9,852,306) | (6,236,864) | ||||||
G Class | (24) | — | ||||||
Decrease in net assets from distributions | (30,570,266) | (22,717,358) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 712,754,226 | 430,517,881 | ||||||
Net increase (decrease) in net assets | 54,270,533 | 401,401,395 | ||||||
Net Assets | ||||||||
Beginning of period | 3,245,834,219 | 2,844,432,824 | ||||||
End of period | $ | 3,300,104,752 | $ | 3,245,834,219 |
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2022 (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, 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, 2022.
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 (NAV) 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 NAV 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 NAV 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. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 15% 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 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 | Y Class | A Class | C Class | R Class | R5 Class | R6 Class | G Class(1) | ||||||||||||||||||
1.25% | 1.05% | 0.90% | 1.25% | 1.25% | 1.25% | 1.05% | 0.90% | 0.00% |
(1)Annual management fee before waiver was 0.90%.
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, 2022 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 sales were $4,187,035 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $3,414,121 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, 2022 were $1,153,540,816 and $844,838,736, respectively.
16
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2022(1) | Year ended November 30, 2021 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 1,100,000,000 | 1,100,000,000 | ||||||||||||
Sold | 4,468,472 | $ | 57,606,425 | 10,257,205 | $ | 154,967,241 | ||||||||
Issued in reinvestment of distributions | 379,470 | 4,322,163 | 222,670 | 3,290,668 | ||||||||||
Redeemed | (5,568,420) | (69,361,828) | (12,682,038) | (189,334,522) | ||||||||||
(720,478) | (7,433,240) | (2,202,163) | (31,076,613) | |||||||||||
I Class/Shares Authorized | 1,520,000,000 | 1,520,000,000 | ||||||||||||
Sold | 22,368,016 | 283,685,686 | 37,994,838 | 585,982,225 | ||||||||||
Issued in reinvestment of distributions | 1,181,788 | 13,791,471 | 763,688 | 11,554,604 | ||||||||||
Redeemed | (35,800,433) | (438,763,194) | (30,097,172) | (462,700,286) | ||||||||||
(12,250,629) | (141,286,037) | 8,661,354 | 134,836,543 | |||||||||||
Y Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||
Sold | 1,998,039 | 27,316,053 | 1,671,573 | 25,772,225 | ||||||||||
Issued in reinvestment of distributions | 43,474 | 508,209 | 19,691 | 298,311 | ||||||||||
Redeemed | (1,356,292) | (16,293,256) | (1,043,781) | (16,151,806) | ||||||||||
685,221 | 11,531,006 | 647,483 | 9,918,730 | |||||||||||
A Class/Shares Authorized | 100,000,000 | 100,000,000 | ||||||||||||
Sold | 1,161,967 | 14,015,024 | 2,330,248 | 33,680,130 | ||||||||||
Issued in reinvestment of distributions | 27,169 | 298,592 | 12,777 | 182,204 | ||||||||||
Redeemed | (1,922,753) | (23,286,830) | (1,919,955) | (27,758,871) | ||||||||||
(733,617) | (8,973,214) | 423,070 | 6,103,463 | |||||||||||
C Class/Shares Authorized | 45,000,000 | 45,000,000 | ||||||||||||
Sold | 47,074 | 502,837 | 372,548 | 4,958,377 | ||||||||||
Redeemed | (348,823) | (3,721,658) | (509,367) | (6,661,355) | ||||||||||
(301,749) | (3,218,821) | (136,819) | (1,702,978) | |||||||||||
R Class/Shares Authorized | 25,000,000 | 30,000,000 | ||||||||||||
Sold | 105,314 | 1,270,621 | 316,845 | 4,636,023 | ||||||||||
Issued in reinvestment of distributions | 2,832 | 31,290 | — | — | ||||||||||
Redeemed | (97,544) | (1,171,953) | (302,174) | (4,388,338) | ||||||||||
10,602 | 129,958 | 14,671 | 247,685 | |||||||||||
R5 Class/Shares Authorized | 25,000,000 | 30,000,000 | ||||||||||||
Sold | 146,687 | 1,847,401 | 685,046 | 10,352,533 | ||||||||||
Issued in reinvestment of distributions | 10,433 | 121,852 | 1,934 | 29,285 | ||||||||||
Redeemed | (80,090) | (1,033,179) | (95,988) | (1,453,583) | ||||||||||
77,030 | 936,074 | 590,992 | 8,928,235 | |||||||||||
R6 Class/Shares Authorized | 450,000,000 | 450,000,000 | ||||||||||||
Sold | 12,370,281 | 157,058,801 | 32,070,850 | 490,325,641 | ||||||||||
Issued in reinvestment of distributions | 821,931 | 9,591,938 | 399,613 | 6,042,152 | ||||||||||
Redeemed | (8,234,624) | (102,681,508) | (12,638,202) | (193,104,977) | ||||||||||
4,957,588 | 63,969,231 | 19,832,261 | 303,262,816 | |||||||||||
G Class/Shares Authorized | 510,000,000 | N/A | ||||||||||||
Sold | 1,510,266 | 16,684,683 | ||||||||||||
Issued in connection with reorganization (Note 9) | 69,959,409 | 781,612,283 | ||||||||||||
Issued in reinvestment of distributions | 2 | 24 | ||||||||||||
Redeemed | (109,047) | (1,197,721) | ||||||||||||
71,360,630 | 797,099,269 | |||||||||||||
Net increase (decrease) | 63,084,598 | $ | 712,754,226 | 27,830,849 | $ | 430,517,881 |
(1)April 1, 2022 (commencement of sale) through May 31, 2022 for the G Class.
17
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
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 | $ | 59,029,511 | $ | 159,007,430 | — | ||||||
China | 107,201,681 | 757,083,285 | — | ||||||||
India | 98,502,249 | 222,689,891 | — | ||||||||
Luxembourg | 20,620,039 | — | — | ||||||||
Mexico | 29,115,143 | 87,189,642 | — | ||||||||
Peru | 24,900,324 | — | — | ||||||||
Russia | 60,746 | 9,732 | — | ||||||||
United States | 18,963,284 | — | — | ||||||||
Other Countries | — | 1,669,475,216 | — | ||||||||
Rights | — | 818,081 | — | ||||||||
Short-Term Investments | 7,656,984 | 40,350,693 | — | ||||||||
$ | 366,049,961 | $ | 2,936,623,970 | — |
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, war, 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.
18
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 3,082,028,926 | |||
Gross tax appreciation of investments | $ | 596,651,388 | |||
Gross tax depreciation of investments | (376,006,383) | ||||
Net tax appreciation (depreciation) of investments | $ | 220,645,005 |
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, 2021, the fund had accumulated short-term capital losses of $(248,349,925), 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 2, 2021, the Board of Directors approved an agreement and plan of reorganization (the reorganization), whereby the net assets of NT Emerging Markets Fund, one fund in a series issued by the corporation, were transferred to Emerging Markets Fund in exchange for shares of Emerging Markets 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 Emerging Markets Fund survived after the reorganization. The reorganization was effective at the close of the NYSE on April 22, 2022.
The reorganization was accomplished by a tax-free exchange of shares. On April 22, 2022, NT Emerging Markets Fund exchanged its shares for shares of Emerging Markets Fund as follows:
Original Fund/Class | Shares Exchanged | New Fund/Class | Shares Received | ||||||||
NT Emerging Markets Fund – G Class | 75,795,014 | Emerging Markets Fund – G Class | 69,959,409 |
The net assets of NT Emerging Markets Fund and Emerging Markets Fund immediately before the reorganization were $781,612,283 and $2,574,757,849, respectively. NT Emerging Markets Fund's unrealized appreciation of $(21,227,170) was combined with that of Emerging Markets Fund. Immediately after the reorganization, the combined net assets were $3,356,370,132.
Assuming the reorganization had been completed on December 1, 2021, the beginning of the annual reporting period, the pro forma results of operations for the period ended May 31, 2022 are as follows:
Net investment income (loss) | $ | 19,864,147 | |||
Net realized and unrealized gain (loss) | (822,372,399) | ||||
Net increase (decrease) in net assets resulting from operations | $ | (802,508,252) |
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 NT Emerging Markets Fund that have been included in the fund’s Statement of Operations since April 22, 2022.
19
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $13.67 | 0.04 | (2.69) | (2.65) | (0.11) | — | (0.11) | $10.91 | (19.41)% | 1.26%(4) | 1.26%(4) | 0.70%(4) | 0.70%(4) | 27% | $434,482 | ||||||||||||||||||||||||||||||||
2021 | $13.62 | 0.05 | 0.08 | 0.13 | (0.08) | — | (0.08) | $13.67 | 0.91% | 1.25% | 1.25% | 0.36% | 0.36% | 35% | $554,001 | ||||||||||||||||||||||||||||||||
2020 | $11.25 | 0.04 | 2.48 | 2.52 | (0.15) | — | (0.15) | $13.62 | 22.79% | 1.26% | 1.26% | 0.33% | 0.33% | 30% | $582,036 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $14.02 | 0.05 | (2.75) | (2.70) | (0.13) | — | (0.13) | $11.19 | (19.27)% | 1.06%(4) | 1.06%(4) | 0.90%(4) | 0.90%(4) | 27% | $1,188,693 | ||||||||||||||||||||||||||||||||
2021 | $13.97 | 0.09 | 0.07 | 0.16 | (0.11) | — | (0.11) | $14.02 | 1.09% | 1.05% | 1.05% | 0.56% | 0.56% | 35% | $1,661,545 | ||||||||||||||||||||||||||||||||
2020 | $11.56 | 0.06 | 2.54 | 2.60 | (0.19) | — | (0.19) | $13.97 | 22.94% | 1.06% | 1.06% | 0.53% | 0.53% | 30% | $1,534,445 | ||||||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $14.05 | 0.06 | (2.75) | (2.69) | (0.15) | — | (0.15) | $11.21 | (19.18)% | 0.91%(4) | 0.91%(4) | 1.05%(4) | 1.05%(4) | 27% | $39,076 | ||||||||||||||||||||||||||||||||
2021 | $14.00 | 0.10 | 0.08 | 0.18 | (0.13) | — | (0.13) | $14.05 | 1.24% | 0.90% | 0.90% | 0.71% | 0.71% | 35% | $39,377 | ||||||||||||||||||||||||||||||||
2020 | $11.60 | 0.08 | 2.54 | 2.62 | (0.22) | — | (0.22) | $14.00 | 23.09% | 0.91% | 0.91% | 0.68% | 0.68% | 30% | $30,169 | ||||||||||||||||||||||||||||||||
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(5) | $9.79 | 0.07 | 2.48 | 2.55 | — | — | — | $12.34 | 26.05% | 0.77%(4) | 1.12%(4) | 0.91%(4) | 0.56%(4) | 47%(6) | $6 | ||||||||||||||||||||||||||||||||
A Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $13.17 | 0.02 | (2.58) | (2.56) | (0.08) | — | (0.08) | $10.53 | (19.45)% | 1.51%(4) | 1.51%(4) | 0.45%(4) | 0.45%(4) | 27% | $67,699 | ||||||||||||||||||||||||||||||||
2021 | $13.13 | 0.01 | 0.07 | 0.08 | (0.04) | — | (0.04) | $13.17 | 0.60% | 1.50% | 1.50% | 0.11% | 0.11% | 35% | $94,363 | ||||||||||||||||||||||||||||||||
2020 | $10.84 | 0.01 | 2.40 | 2.41 | (0.12) | — | (0.12) | $13.13 | 22.50% | 1.51% | 1.51% | 0.08% | 0.08% | 30% | $88,485 | ||||||||||||||||||||||||||||||||
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 | —(7) | 3.32 | 3.32 | (0.01) | — | (0.01) | $11.57 | 40.16% | 1.43% | 1.75% | (0.06)% | (0.38)% | 47% | $61,586 |
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) | |||||||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $11.87 | (0.02) | (2.33) | (2.35) | — | — | — | $9.52 | (19.73)% | 2.26%(4) | 2.26%(4) | (0.30)%(4) | (0.30)%(4) | 27% | $17,543 | ||||||||||||||||||||||||||||||||
2021 | $11.88 | (0.08) | 0.07 | (0.01) | — | — | — | $11.87 | (0.17)% | 2.25% | 2.25% | (0.64)% | (0.64)% | 35% | $25,448 | ||||||||||||||||||||||||||||||||
2020 | $9.82 | (0.07) | 2.17 | 2.10 | (0.04) | — | (0.04) | $11.88 | 21.48% | 2.26% | 2.26% | (0.67)% | (0.67)% | 30% | $27,101 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $13.22 | 0.01 | (2.60) | (2.59) | (0.05) | — | (0.05) | $10.58 | (19.58)% | 1.76%(4) | 1.76%(4) | 0.20%(4) | 0.20%(4) | 27% | $6,265 | ||||||||||||||||||||||||||||||||
2021 | $13.17 | (0.02) | 0.08 | 0.06 | (0.01) | — | (0.01) | $13.22 | 0.41% | 1.75% | 1.75% | (0.14)% | (0.14)% | 35% | $7,687 | ||||||||||||||||||||||||||||||||
2020 | $10.88 | (0.02) | 2.40 | 2.38 | (0.09) | — | (0.09) | $13.17 | 22.11% | 1.76% | 1.76% | (0.17)% | (0.17)% | 30% | $7,466 | ||||||||||||||||||||||||||||||||
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 |
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) | |||||||||||||||||||||||||||||||||
R5 Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $14.04 | 0.05 | (2.76) | (2.71) | (0.13) | — | (0.13) | $11.20 | (19.26)% | 1.06%(4) | 1.06%(4) | 0.90%(4) | 0.90%(4) | 27% | $10,576 | ||||||||||||||||||||||||||||||||
2021 | $13.98 | 0.06 | 0.11 | 0.17 | (0.11) | — | (0.11) | $14.04 | 1.09% | 1.05% | 1.05% | 0.56% | 0.56% | 35% | $12,172 | ||||||||||||||||||||||||||||||||
2020 | $11.57 | 0.06 | 2.54 | 2.60 | (0.19) | — | (0.19) | $13.98 | 22.92% | 1.06% | 1.06% | 0.53% | 0.53% | 30% | $3,863 | ||||||||||||||||||||||||||||||||
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(5) | $9.78 | 0.03 | 2.51 | 2.54 | — | — | — | $12.32 | 25.97% | 0.92%(4) | 1.27%(4) | 0.78%(4) | 0.43%(4) | 47%(6) | $46 | ||||||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $14.03 | 0.06 | (2.75) | (2.69) | (0.15) | — | (0.15) | $11.19 | (19.21)% | 0.91%(4) | 0.91%(4) | 1.05%(4) | 1.05%(4) | 27% | $734,186 | ||||||||||||||||||||||||||||||||
2021 | $13.98 | 0.11 | 0.07 | 0.18 | (0.13) | — | (0.13) | $14.03 | 1.24% | 0.90% | 0.90% | 0.71% | 0.71% | 35% | $851,240 | ||||||||||||||||||||||||||||||||
2020 | $11.58 | 0.08 | 2.54 | 2.62 | (0.22) | — | (0.22) | $13.98 | 23.13% | 0.91% | 0.91% | 0.68% | 0.68% | 30% | $570,868 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(8) | $12.44 | 0.04 | (1.13) | (1.09) | (0.12) | — | (0.12) | $11.23 | (8.82)% | 0.01%(4) | 0.91%(4) | 2.55%(4) | 1.65%(4) | 27%(9) | $801,587 |
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, 2022 (unaudited).
(4)Annualized.
(5)April 10, 2017 (commencement of sale) through November 30, 2017.
(6)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2017.
(7)Per-share amount was less than $0.005.
(8)April 1, 2022 (commencement of sale) through May 31, 2022 (unaudited).
(9)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the six months ended May 31, 2022.
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 the Program Administrator, including members of 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 certain Fund’s investments is supported by a third-party liquidity assessment vendor.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period January 1, 2021 through December 31, 2021. 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.
25
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. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
26
Notes |
27
Notes |
28
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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. | ||||||||
©2022 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92633 2207 |
![acihorizblkd50.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/acihorizblkd50.jpg)
Semiannual Report | |||||
May 31, 2022 | |||||
Emerging Markets Small Cap Fund | |||||
Investor Class (AECVX) | |||||
I Class (AECSX) | |||||
A Class (AECLX) | |||||
C Class (AECHX) | |||||
R Class (AECMX) | |||||
R6 Class (AECTX) |
Table of Contents |
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 |
![image26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image26.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2022. 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.
Soaring Prices, Sharp Volatility Sank Stock Returns
Global investors faced an unusual set of challenges in the six-month period. From soaring inflation and rising interest rates to mounting geopolitical unrest and slowing growth, global stocks struggled amid intense volatility.
Inflation was already at multiyear highs when the reporting period began. This was largely due to massive fiscal and monetary support, escalating energy prices, supply chain breakdowns and labor market shortages. Russia’s invasion of Ukraine in February sent commodity prices even higher, exacerbating existing inflationary pressures and further damaging global supply chains.
By period-end, inflation lingered at a 40-year high in the U.S. and the U.K. and a record high in the eurozone. Most emerging markets also grappled with rising inflation. At the same time, global economic growth slowed dramatically, further complicated by COVID-19-related lockdowns that shut down key manufacturing hubs in China.
The Federal Reserve responded to surging inflation in March, launching a rate-hike campaign and ending its bond-buying program. The Bank of England executed a series of rate hikes, while the European Central Bank said it would end its bond buying in the third quarter.
The combination of accelerating inflation, tighter monetary policy, geopolitical strife and slowing economic growth fueled widespread and sharp market volatility. Global stock returns broadly declined for the six-month period. Developed markets stocks generally fared better than emerging markets stocks, while U.S. stocks underperformed other developed markets.
Staying Disciplined in Uncertain Times
We expect market volatility to linger as investors navigate this complex environment of high inflation, rising interest rates and economic uncertainty. In addition, Russia’s invasion of Ukraine complicates a tense geopolitical backdrop. We will continue to monitor this evolving situation and its implications for our clients and investment exposure.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
![image35.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image35.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2022 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 94.5% | ||||
Exchange-Traded Funds | 2.1% | ||||
Rights | —* | ||||
Warrants | —* | ||||
Short-Term Investments | 5.0% | ||||
Other Assets and Liabilities | (1.6)% | ||||
*Category is less than 0.05% of total net assets. | |||||
Top Five Countries* | % of net assets | ||||
India | 18.2% | ||||
South Korea | 13.8% | ||||
Brazil | 13.1% | ||||
Taiwan | 11.6% | ||||
China | 6.3% |
*Exposure indicated excludes Exchange-Traded Funds. The Schedule of Investments provides additional information on the fund's portfolio holdings.
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, 2021 to May 31, 2022.
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 12/1/21 | Ending Account Value 5/31/22 | Expenses Paid During Period(1) 12/1/21 - 5/31/22 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $847.50 | $6.40 | 1.39% | ||||||||||
I Class | $1,000 | $848.40 | $5.48 | 1.19% | ||||||||||
A Class | $1,000 | $846.30 | $7.55 | 1.64% | ||||||||||
C Class | $1,000 | $842.90 | $10.98 | 2.39% | ||||||||||
R Class | $1,000 | $844.90 | $8.69 | 1.89% | ||||||||||
R6 Class | $1,000 | $849.00 | $4.79 | 1.04% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,018.00 | $6.99 | 1.39% | ||||||||||
I Class | $1,000 | $1,019.00 | $5.99 | 1.19% | ||||||||||
A Class | $1,000 | $1,016.75 | $8.25 | 1.64% | ||||||||||
C Class | $1,000 | $1,013.01 | $12.00 | 2.39% | ||||||||||
R Class | $1,000 | $1,015.51 | $9.50 | 1.89% | ||||||||||
R6 Class | $1,000 | $1,019.75 | $5.24 | 1.04% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
5
Schedule of Investments |
MAY 31, 2022 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 94.5% | ||||||||
Brazil — 13.1% | ||||||||
Banco Inter SA | 19,482 | $ | 50,503 | |||||
Bradespar SA, Preference Shares | 14,800 | 88,908 | ||||||
CVC Brasil Operadora e Agencia de Viagens SA(1) | 82,400 | 189,505 | ||||||
Embraer SA, ADR(1) | 7,412 | 79,383 | ||||||
Pet Center Comercio e Participacoes SA | 47,100 | 121,205 | ||||||
Petro Rio SA(1) | 54,700 | 319,852 | ||||||
Santos Brasil Participacoes SA | 79,700 | 123,091 | ||||||
SLC Agricola SA | 21,100 | 245,828 | ||||||
TOTVS SA | 12,700 | 75,197 | ||||||
1,293,472 | ||||||||
China — 6.3% | ||||||||
China Education Group Holdings Ltd.(2) | 44,000 | 30,382 | ||||||
China Overseas Property Holdings Ltd. | 100,000 | 116,273 | ||||||
China Suntien Green Energy Corp. Ltd., H Shares | 79,000 | 46,030 | ||||||
China Yongda Automobiles Services Holdings Ltd. | 51,000 | 52,720 | ||||||
Chinasoft International Ltd.(1) | 50,000 | 45,950 | ||||||
Far East Horizon Ltd.(2) | 194,000 | 171,860 | ||||||
Li Ning Co. Ltd. | 7,500 | 58,516 | ||||||
XTEP International Holdings Ltd.(2) | 71,000 | 102,302 | ||||||
624,033 | ||||||||
Greece — 2.5% | ||||||||
JUMBO SA | 4,150 | 68,977 | ||||||
OPAP SA | 11,471 | 171,254 | ||||||
240,231 | ||||||||
Hong Kong — 0.9% | ||||||||
Chervon Holdings Ltd.(1)(2) | 15,100 | 89,942 | ||||||
India — 18.2% | ||||||||
AU Small Finance Bank Ltd.(1) | 13,004 | 208,912 | ||||||
Bata India Ltd. | 4,098 | 98,650 | ||||||
Central Depository Services India Ltd. | 3,244 | 52,110 | ||||||
Crompton Greaves Consumer Electricals Ltd. | 10,079 | 46,630 | ||||||
L&T Technology Services Ltd. | 4,385 | 196,823 | ||||||
Larsen & Toubro Infotech Ltd. | 1,321 | 72,022 | ||||||
MakeMyTrip Ltd.(1) | 4,784 | 132,325 | ||||||
Persistent Systems Ltd. | 2,553 | 123,173 | ||||||
Prestige Estates Projects Ltd. | 34,509 | 189,376 | ||||||
Shriram Transport Finance Co. Ltd. | 4,321 | 65,059 | ||||||
Torrent Pharmaceuticals Ltd. | 2,557 | 93,000 | ||||||
Varun Beverages Ltd. | 18,183 | 246,227 | ||||||
VIP Industries Ltd. | 21,397 | 157,980 | ||||||
WNS Holdings Ltd., ADR(1) | 1,598 | 116,286 | ||||||
1,798,573 | ||||||||
Indonesia — 5.8% | ||||||||
Ace Hardware Indonesia Tbk PT | 687,200 | 45,261 | ||||||
Aneka Tambang Tbk | 688,400 | 118,050 | ||||||
Bank BTPN Syariah Tbk PT | 831,400 | 173,795 |
6
Shares | Value | |||||||
Jasa Marga Persero Tbk PT(1) | 229,800 | $ | 63,021 | |||||
Mitra Adiperkasa Tbk PT(1) | 817,100 | 50,314 | ||||||
Tower Bersama Infrastructure Tbk PT | 616,900 | 124,481 | ||||||
574,922 | ||||||||
Malaysia — 2.4% | ||||||||
Carlsberg Brewery Malaysia Bhd | 27,600 | 139,092 | ||||||
Inari Amertron Bhd | 63,500 | 40,575 | ||||||
VS Industry Bhd | 250,200 | 56,634 | ||||||
236,301 | ||||||||
Mexico — 2.5% | ||||||||
Gentera SAB de CV | 314,984 | 240,393 | ||||||
Peru — 1.5% | ||||||||
Intercorp Financial Services, Inc.(2) | 5,517 | 150,559 | ||||||
Philippines — 4.1% | ||||||||
International Container Terminal Services, Inc. | 29,600 | 122,519 | ||||||
Security Bank Corp. | 43,150 | 75,958 | ||||||
Wilcon Depot, Inc. | 409,900 | 207,079 | ||||||
405,556 | ||||||||
Russia(4)† | ||||||||
Detsky Mir PJSC | 23,844 | 229 | ||||||
HeadHunter Group PLC, ADR | 776 | 81 | ||||||
310 | ||||||||
Saudi Arabia — 1.0% | ||||||||
Leejam Sports Co. JSC | 3,795 | 101,619 | ||||||
South Africa — 5.7% | ||||||||
Capitec Bank Holdings Ltd. | 630 | 90,642 | ||||||
Clicks Group Ltd. | 11,444 | 223,389 | ||||||
Exxaro Resources Ltd. | 10,321 | 146,380 | ||||||
Thungela Resources Ltd.(2) | 6,388 | 102,069 | ||||||
562,480 | ||||||||
South Korea — 13.8% | ||||||||
BGF retail Co. Ltd. | 1,523 | 225,018 | ||||||
BNK Financial Group, Inc. | 7,504 | 47,832 | ||||||
Chunbo Co. Ltd. | 233 | 50,544 | ||||||
Doosan Bobcat, Inc. | 3,691 | 112,810 | ||||||
Ecopro BM Co. Ltd. | 623 | 253,367 | ||||||
Han Kuk Carbon Co. Ltd. | 4,582 | 47,916 | ||||||
Hite Jinro Co. Ltd. | 1,658 | 47,634 | ||||||
Iljin Materials Co. Ltd. | 2,717 | 197,054 | ||||||
Jeisys Medical, Inc.(1) | 7,278 | 49,023 | ||||||
Koh Young Technology, Inc. | 3,343 | 44,434 | ||||||
LG Innotek Co. Ltd. | 787 | 243,205 | ||||||
PI Advanced Materials Co. Ltd. | 986 | 39,661 | ||||||
1,358,498 | ||||||||
Taiwan — 11.6% | ||||||||
Accton Technology Corp. | 8,000 | 63,309 | ||||||
Alchip Technologies Ltd. | 3,000 | 95,298 | ||||||
ASPEED Technology, Inc. | 1,000 | 79,495 | ||||||
Bizlink Holding, Inc. | 9,000 | 96,130 | ||||||
Chailease Holding Co. Ltd. | 32,452 | 249,704 | ||||||
Kinsus Interconnect Technology Corp. | 14,000 | 83,156 | ||||||
Pegavision Corp. | 3,000 | 45,277 |
7
Shares | Value | |||||||
Powertech Technology, Inc. | 22,000 | $ | 73,851 | |||||
Sercomm Corp. | 22,000 | 59,843 | ||||||
Vanguard International Semiconductor Corp. | 14,000 | 51,352 | ||||||
Wafer Works Corp. | 26,000 | 55,515 | ||||||
Wisdom Marine Lines Co. Ltd. | 57,000 | 189,866 | ||||||
1,142,796 | ||||||||
Thailand — 4.7% | ||||||||
Minor International PCL(1) | 217,100 | 221,776 | ||||||
Muangthai Capital PCL | 25,900 | 37,203 | ||||||
Srisawad Corp. PCL | 35,560 | 57,578 | ||||||
Thai Oil PCL | 86,300 | 144,903 | ||||||
461,460 | ||||||||
Turkey — 0.4% | ||||||||
Sok Marketler Ticaret AS | 44,768 | 36,611 | ||||||
TOTAL COMMON STOCKS (Cost $8,426,733) | 9,317,756 | |||||||
EXCHANGE-TRADED FUNDS — 2.1% | ||||||||
Fubon Taiwan Small-Mid Cap Alpha Momentum 50 ETF (Cost $251,189) | 165,000 | 205,476 | ||||||
RIGHTS† | ||||||||
South Korea† | ||||||||
Ecopro BM Co. Ltd.(1) (Cost $—) | 35 | 4,371 | ||||||
WARRANTS† | ||||||||
Malaysia† | ||||||||
VS Industry Bhd(1) (Cost $—) | 50,040 | 2,229 | ||||||
SHORT-TERM INVESTMENTS — 5.0% | ||||||||
Money Market Funds — 3.7% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 270,374 | 270,374 | ||||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) | 94,821 | 94,821 | ||||||
365,195 | ||||||||
Repurchase Agreements — 1.3% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.50% - 4.375%, 2/15/38 - 2/15/45, valued at $131,776), in a joint trading account at 0.74%, dated 5/31/22, due 6/1/22 (Delivery value $129,230) | 129,227 | |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $494,422) | 494,422 | |||||||
TOTAL INVESTMENT SECURITIES — 101.6% (Cost $9,172,344) | 10,024,254 | |||||||
OTHER ASSETS AND LIABILITIES — (1.6)% | (158,796) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 9,865,458 |
8
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Consumer Discretionary | 19.5% | ||||
Financials | 17.0% | ||||
Information Technology | 16.1% | ||||
Industrials | 12.5% | ||||
Consumer Staples | 11.9% | ||||
Energy | 7.7% | ||||
Materials | 3.5% | ||||
Real Estate | 3.1% | ||||
Health Care | 1.9% | ||||
Communication Services | 1.3% | ||||
Exchange-Traded Funds | 2.1% | ||||
Short-Term Investments | 5.0% | ||||
Other Assets and Liabilities | (1.6)% |
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
ADR | - | American Depositary Receipt |
†Category is less than 0.05% of total net assets.
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $453,369. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $484,039, which includes securities collateral of $389,218.
(4)Securities may be subject to resale, redemption or transferability restrictions.
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2022 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $9,077,523) — including $453,369 of securities on loan | $ | 9,929,433 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $94,821) | 94,821 | ||||
Total investment securities, at value (cost of $9,172,344) | 10,024,254 | ||||
Foreign currency holdings, at value (cost of $626) | 577 | ||||
Receivable for capital shares sold | 1,689 | ||||
Dividends and interest receivable | 2,602 | ||||
Securities lending receivable | 588 | ||||
Other assets | 4,475 | ||||
10,034,185 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 94,821 | ||||
Payable for capital shares redeemed | 39,292 | ||||
Accrued management fees | 10,202 | ||||
Distribution and service fees payable | 274 | ||||
Accrued foreign taxes | 24,138 | ||||
168,727 | |||||
Net Assets | $ | 9,865,458 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 8,878,160 | |||
Distributable earnings | 987,298 | ||||
$ | 9,865,458 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $2,723,934 | 210,822 | $12.92 | ||||||||
I Class, $0.01 Par Value | $6,311,177 | 486,025 | $12.99 | ||||||||
A Class, $0.01 Par Value | $257,607 | 20,092 | $12.82* | ||||||||
C Class, $0.01 Par Value | $12,974 | 1,048 | $12.38 | ||||||||
R Class, $0.01 Par Value | $514,563 | 40,538 | $12.69 | ||||||||
R6 Class, $0.01 Par Value | $45,203 | 3,468 | $13.03 |
*Maximum offering price $13.60 (net asset value divided by 0.9425).
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $11,156) | $ | 98,282 | |||
Securities lending, net | 889 | ||||
Interest | 227 | ||||
99,398 | |||||
Expenses: | |||||
Management fees | 63,098 | ||||
Distribution and service fees: | |||||
A Class | 352 | ||||
C Class | 56 | ||||
R Class | 1,299 | ||||
Directors' fees and expenses | 108 | ||||
Other expenses | 29 | ||||
64,942 | |||||
Net investment income (loss) | 34,456 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions (net of foreign tax expenses paid (refunded) of $12,141) | 167,040 | ||||
Foreign currency translation transactions | (6,064) | ||||
160,976 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments (includes (increase) decrease in accrued foreign taxes of $64,097) | (1,848,779) | ||||
Translation of assets and liabilities in foreign currencies | 239 | ||||
(1,848,540) | |||||
Net realized and unrealized gain (loss) | (1,687,564) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (1,653,108) |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2021 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2022 | November 30, 2021 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 34,456 | $ | 31,468 | ||||
Net realized gain (loss) | 160,976 | 807,548 | ||||||
Change in net unrealized appreciation (depreciation) | (1,848,540) | 744,765 | ||||||
Net increase (decrease) in net assets resulting from operations | (1,653,108) | 1,583,781 | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (243,371) | (125,868) | ||||||
I Class | (455,863) | (175,627) | ||||||
A Class | (22,401) | (8,853) | ||||||
C Class | (754) | (365) | ||||||
R Class | (39,365) | (11,882) | ||||||
R6 Class | (1,395) | (638) | ||||||
Decrease in net assets from distributions | (763,149) | (323,233) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 1,887,539 | 1,720,240 | ||||||
Net increase (decrease) in net assets | (528,718) | 2,980,788 | ||||||
Net Assets | ||||||||
Beginning of period | 10,394,176 | 7,413,388 | ||||||
End of period | $ | 9,865,458 | $ | 10,394,176 |
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2022 (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 (NAV) 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 NAV 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 NAV 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. 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.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 31, 2022.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 94,821 | — | — | — | $ | 94,821 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 94,821 |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
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3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
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 | ||||||||||||
1.39% | 1.19% | 1.39% | 1.39% | 1.39% | 1.04% |
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, 2022 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 sales were $16,179 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $14,501 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, 2022 were $4,251,213 and $3,337,087, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2022 | Year ended November 30, 2021 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||
Sold | 17,865 | $ | 258,872 | 54,500 | $ | 873,126 | ||||||||
Issued in reinvestment of distributions | 15,784 | 239,280 | 8,815 | 125,349 | ||||||||||
Redeemed | (32,224) | (482,605) | (63,653) | (992,701) | ||||||||||
1,425 | 15,547 | (338) | 5,774 | |||||||||||
I Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||
Sold | 145,999 | 2,060,689 | 125,816 | 2,006,203 | ||||||||||
Issued in reinvestment of distributions | 29,930 | 455,532 | 12,299 | 175,627 | ||||||||||
Redeemed | (57,435) | (823,049) | (46,058) | (742,943) | ||||||||||
118,494 | 1,693,172 | 92,057 | 1,438,887 | |||||||||||
A Class/Shares Authorized | 25,000,000 | 30,000,000 | ||||||||||||
Sold | 7 | 95 | 3,415 | 57,000 | ||||||||||
Issued in reinvestment of distributions | 1,488 | 22,401 | 626 | 8,853 | ||||||||||
Redeemed | (11) | (140) | — | — | ||||||||||
1,484 | 22,356 | 4,041 | 65,853 | |||||||||||
C Class/Shares Authorized | 25,000,000 | 30,000,000 | ||||||||||||
Sold | 370 | 4,607 | 235 | 3,788 | ||||||||||
Issued in reinvestment of distributions | 52 | 754 | 26 | 365 | ||||||||||
Redeemed | — | — | (235) | (3,812) | ||||||||||
422 | 5,361 | 26 | 341 | |||||||||||
R Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 10,282 | 142,288 | 28,321 | 453,888 | ||||||||||
Issued in reinvestment of distributions | 2,633 | 39,304 | 845 | 11,882 | ||||||||||
Redeemed | (4,453) | (61,711) | (16,093) | (257,023) | ||||||||||
8,462 | 119,881 | 13,073 | 208,747 | |||||||||||
R6 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 2,286 | 29,859 | — | — | ||||||||||
Issued in reinvestment of distributions | 91 | 1,395 | 44 | 638 | ||||||||||
Redeemed | (3) | (32) | — | — | ||||||||||
2,374 | 31,222 | 44 | 638 | |||||||||||
Net increase (decrease) | 132,661 | $ | 1,887,539 | 108,903 | $ | 1,720,240 |
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 | $ | 478,634 | $ | 8,839,122 | — | ||||||
Exchange-Traded Funds | — | 205,476 | — | ||||||||
Rights | — | 4,371 | — | ||||||||
Warrants | — | 2,229 | — | ||||||||
Short-Term Investments | 365,195 | 129,227 | — | ||||||||
$ | 843,829 | $ | 9,180,425 | — |
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, war, 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 | $ | 9,193,224 | |||
Gross tax appreciation of investments | $ | 1,641,901 | |||
Gross tax depreciation of investments | (810,871) | ||||
Net tax appreciation (depreciation) of investments | $ | 831,030 |
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 | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $16.48 | 0.04 | (2.38) | (2.34) | (0.02) | (1.20) | (1.22) | $12.92 | (15.25)% | 1.39%(4) | 0.61%(4) | 34% | $2,724 | ||||||||||||||||||||||||||||
2021 | $14.23 | 0.04 | 2.82 | 2.86 | — | (0.61) | (0.61) | $16.48 | 20.69% | 1.39% | 0.25% | 52% | $3,451 | ||||||||||||||||||||||||||||
2020 | $12.52 | 0.04 | 1.72 | 1.76 | (0.05) | — | (0.05) | $14.23 | 14.07% | 1.54% | 0.37% | 60% | $2,984 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $16.57 | 0.06 | (2.39) | (2.33) | (0.05) | (1.20) | (1.25) | $12.99 | (15.16)% | 1.19%(4) | 0.81%(4) | 34% | $6,311 | ||||||||||||||||||||||||||||
2021 | $14.27 | 0.07 | 2.84 | 2.91 | — | (0.61) | (0.61) | $16.57 | 21.06% | 1.19% | 0.45% | 52% | $6,090 | ||||||||||||||||||||||||||||
2020 | $12.56 | 0.07 | 1.71 | 1.78 | (0.07) | — | (0.07) | $14.27 | 14.25% | 1.34% | 0.57% | 60% | $3,932 | ||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $16.36 | 0.02 | (2.36) | (2.34) | — | (1.20) | (1.20) | $12.82 | (15.37)% | 1.64%(4) | 0.36%(4) | 34% | $258 | ||||||||||||||||||||||||||||
2021 | $14.17 | (0.01) | 2.81 | 2.80 | — | (0.61) | (0.61) | $16.36 | 20.41% | 1.64% | 0.00%(5) | 52% | $305 | ||||||||||||||||||||||||||||
2020 | $12.47 | 0.02 | 1.69 | 1.71 | (0.01) | — | (0.01) | $14.17 | 13.76% | 1.79% | 0.12% | 60% | $206 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $15.90 | (0.02) | (2.30) | (2.32) | — | (1.20) | (1.20) | $12.38 | (15.71)% | 2.39%(4) | (0.39)%(4) | 34% | $13 | ||||||||||||||||||||||||||||
2021 | $13.88 | (0.12) | 2.75 | 2.63 | — | (0.61) | (0.61) | $15.90 | 19.58% | 2.39% | (0.75)% | 52% | $10 | ||||||||||||||||||||||||||||
2020 | $12.29 | (0.07) | 1.66 | 1.59 | — | — | — | $13.88 | 12.94% | 2.54% | (0.63)% | 60% | $8 | ||||||||||||||||||||||||||||
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) | —(6) | (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 | ||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $16.23 | 0.01 | (2.35) | (2.34) | — | (1.20) | (1.20) | $12.69 | (15.51)% | 1.89%(4) | 0.11%(4) | 34% | $515 | ||||||||||||||||||||||||||||
2021 | $14.09 | (0.04) | 2.79 | 2.75 | — | (0.61) | (0.61) | $16.23 | 20.16% | 1.89% | (0.25)% | 52% | $521 | ||||||||||||||||||||||||||||
2020 | $12.42 | (0.01) | 1.68 | 1.67 | — | — | — | $14.09 | 13.54% | 2.04% | (0.13)% | 60% | $268 | ||||||||||||||||||||||||||||
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 |
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) | |||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $16.64 | 0.09 | (2.43) | (2.34) | (0.07) | (1.20) | (1.27) | $13.03 | (15.10)% | 1.04%(4) | 0.96%(4) | 34% | $45 | ||||||||||||||||||||||||||||
2021 | $14.31 | 0.10 | 2.84 | 2.94 | — | (0.61) | (0.61) | $16.64 | 21.15% | 1.04% | 0.60% | 52% | $18 | ||||||||||||||||||||||||||||
2020 | $12.59 | 0.10 | 1.71 | 1.81 | (0.09) | — | (0.09) | $14.31 | 14.47% | 1.19% | 0.72% | 60% | $15 | ||||||||||||||||||||||||||||
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 |
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, 2022 (unaudited).
(4)Annualized.
(5)Ratio was less than 0.005%.
(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 the Program Administrator, including members of 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 certain Fund’s investments is supported by a third-party liquidity assessment vendor.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period January 1, 2021 through December 31, 2021. 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.
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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. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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Notes |
24
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American Century World Mutual Funds, Inc. | ||||||||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||||||||
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©2022 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92636 2207 |
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Semiannual Report | |||||
May 31, 2022 | |||||
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) |
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 |
![image26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image26.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2022. 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.
Soaring Prices, Sharp Volatility Sank Stock Returns
Global investors faced an unusual set of challenges in the six-month period. From soaring inflation and rising interest rates to mounting geopolitical unrest and slowing growth, global stocks struggled amid intense volatility.
Inflation was already at multiyear highs when the reporting period began. This was largely due to massive fiscal and monetary support, escalating energy prices, supply chain breakdowns and labor market shortages. Russia’s invasion of Ukraine in February sent commodity prices even higher, exacerbating existing inflationary pressures and further damaging global supply chains.
By period-end, inflation lingered at a 40-year high in the U.S. and the U.K. and a record high in the eurozone. Most emerging markets also grappled with rising inflation. At the same time, global economic growth slowed dramatically, further complicated by COVID-19-related lockdowns that shut down key manufacturing hubs in China.
The Federal Reserve responded to surging inflation in March, launching a rate-hike campaign and ending its bond-buying program. The Bank of England executed a series of rate hikes, while the European Central Bank said it would end its bond buying in the third quarter.
The combination of accelerating inflation, tighter monetary policy, geopolitical strife and slowing economic growth fueled widespread and sharp market volatility. Global stock returns broadly declined for the six-month period. Developed markets stocks generally fared better than emerging markets stocks, while U.S. stocks underperformed other developed markets.
Staying Disciplined in Uncertain Times
We expect market volatility to linger as investors navigate this complex environment of high inflation, rising interest rates and economic uncertainty. In addition, Russia’s invasion of Ukraine complicates a tense geopolitical backdrop. We will continue to monitor this evolving situation and its implications for our clients and investment exposure.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
![image35.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image35.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2022 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 98.9% | ||||
Short-Term Investments | 0.9% | ||||
Other Assets and Liabilities | 0.2% | ||||
Top Five Countries | % of net assets | ||||
United States | 66.2% | ||||
Hong Kong | 5.6% | ||||
France | 5.5% | ||||
Ireland | 5.4% | ||||
Italy | 2.8% |
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, 2021 to May 31, 2022.
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 12/1/21 | Ending Account Value 5/31/22 | Expenses Paid During Period(1) 12/1/21 - 5/31/22 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $886.20 | $5.27 | 1.12% | ||||||||||
I Class | $1,000 | $886.80 | $4.33 | 0.92% | ||||||||||
Y Class | $1,000 | $887.40 | $3.62 | 0.77% | ||||||||||
A Class | $1,000 | $884.70 | $6.44 | 1.37% | ||||||||||
C Class | $1,000 | $881.70 | $9.95 | 2.12% | ||||||||||
R Class | $1,000 | $884.20 | $7.61 | 1.62% | ||||||||||
R5 Class | $1,000 | $887.50 | $4.33 | 0.92% | ||||||||||
R6 Class | $1,000 | $887.80 | $3.62 | 0.77% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,019.35 | $5.64 | 1.12% | ||||||||||
I Class | $1,000 | $1,020.34 | $4.63 | 0.92% | ||||||||||
Y Class | $1,000 | $1,021.09 | $3.88 | 0.77% | ||||||||||
A Class | $1,000 | $1,018.10 | $6.89 | 1.37% | ||||||||||
C Class | $1,000 | $1,014.36 | $10.65 | 2.12% | ||||||||||
R Class | $1,000 | $1,016.85 | $8.15 | 1.62% | ||||||||||
R5 Class | $1,000 | $1,020.34 | $4.63 | 0.92% | ||||||||||
R6 Class | $1,000 | $1,021.09 | $3.88 | 0.77% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
5
Schedule of Investments |
MAY 31, 2022 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 98.9% | ||||||||
Brazil — 2.6% | ||||||||
B3 SA - Brasil Bolsa Balcao | 6,139,200 | $ | 16,418,393 | |||||
Canada — 0.8% | ||||||||
Canadian Pacific Railway Ltd. | 70,663 | 5,048,165 | ||||||
China — 2.0% | ||||||||
Ping An Insurance Group Co. of China Ltd., H Shares | 1,998,000 | 12,792,849 | ||||||
France — 5.5% | ||||||||
Pernod Ricard SA | 92,260 | 18,118,702 | ||||||
Schneider Electric SE | 123,120 | 17,100,354 | ||||||
35,219,056 | ||||||||
Hong Kong — 5.6% | ||||||||
AIA Group Ltd. | 1,791,000 | 18,555,089 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 386,283 | 16,667,363 | ||||||
35,222,452 | ||||||||
India — 2.8% | ||||||||
HDFC Bank Ltd. | 1,003,760 | 17,817,752 | ||||||
Ireland — 5.4% | ||||||||
CRH PLC | 405,610 | 16,740,695 | ||||||
ICON PLC(1) | 79,730 | 17,842,777 | ||||||
34,583,472 | ||||||||
Italy — 2.8% | ||||||||
Stellantis NV | 1,193,594 | 17,910,316 | ||||||
Spain — 2.6% | ||||||||
Cellnex Telecom SA | 362,500 | 16,359,319 | ||||||
United Kingdom — 2.6% | ||||||||
AstraZeneca PLC | 126,480 | 16,716,063 | ||||||
United States — 66.2% | ||||||||
Adobe, Inc.(1) | 22,484 | 9,364,136 | ||||||
Alphabet, Inc., Class A(1) | 14,090 | 32,058,132 | ||||||
Amazon.com, Inc.(1) | 11,318 | 27,210,622 | ||||||
American Express Co. | 100,130 | 16,903,947 | ||||||
AMETEK, Inc. | 146,200 | 17,758,914 | ||||||
Aptiv PLC(1) | 159,620 | 16,958,029 | ||||||
Avantor, Inc.(1) | 534,855 | 17,136,754 | ||||||
Booking Holdings, Inc.(1) | 7,470 | 16,759,393 | ||||||
Catalent, Inc.(1) | 25,941 | 2,673,479 | ||||||
Charles Schwab Corp. (The) | 139,462 | 9,776,286 | ||||||
Cheniere Energy, Inc. | 133,640 | 18,277,943 | ||||||
Equinix, Inc. | 26,646 | 18,308,200 | ||||||
GXO Logistics, Inc.(1) | 309,580 | 16,800,907 | ||||||
HEICO Corp. | 122,000 | 17,452,100 | ||||||
Lowe's Cos., Inc. | 87,220 | 17,034,066 | ||||||
Marvell Technology, Inc. | 174,487 | 10,320,906 | ||||||
Mastercard, Inc., Class A | 57,733 | 20,660,909 | ||||||
Microsoft Corp. | 123,290 | 33,518,852 | ||||||
NXP Semiconductors NV | 96,075 | 18,231,192 | ||||||
Pioneer Natural Resources Co. | 72,664 | 20,196,232 |
6
Shares | Value | |||||||
S&P Global, Inc. | 46,420 | $ | 16,222,862 | |||||
ServiceNow, Inc.(1) | 34,405 | 16,083,305 | ||||||
Teleflex, Inc. | 41,108 | 11,828,416 | ||||||
Truist Financial Corp. | 145,586 | 7,241,448 | ||||||
Workday, Inc., Class A(1) | 78,540 | 12,275,802 | ||||||
421,052,832 | ||||||||
TOTAL COMMON STOCKS (Cost $528,507,363) | 629,140,669 | |||||||
SHORT-TERM INVESTMENTS — 0.9% | ||||||||
Money Market Funds — 0.2% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class (Cost $875,297) | 875,297 | 875,297 | ||||||
Repurchase Agreements — 0.7% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.50% - 4.375%, 2/15/38 - 2/15/45, valued at $426,605), in a joint trading account at 0.74%, dated 5/31/22, due 6/1/22 (Delivery value $418,361) | 418,352 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 4.50%, 5/15/38, valued at $4,276,920), at 0.75%, dated 5/31/22, due 6/1/22 (Delivery value $4,193,087) | 4,193,000 | |||||||
4,611,352 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $5,486,649) | 5,486,649 | |||||||
TOTAL INVESTMENT SECURITIES — 99.8% (Cost $533,994,012) | 634,627,318 | |||||||
OTHER ASSETS AND LIABILITIES — 0.2% | 1,402,702 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 636,030,020 |
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Financials | 20.9% | ||||
Information Technology | 18.9% | ||||
Consumer Discretionary | 15.1% | ||||
Industrials | 11.6% | ||||
Health Care | 10.4% | ||||
Communication Services | 7.6% | ||||
Energy | 6.1% | ||||
Real Estate | 2.9% | ||||
Consumer Staples | 2.8% | ||||
Materials | 2.6% | ||||
Short-Term Investments | 0.9% | ||||
Other Assets and Liabilities | 0.2% |
NOTES TO SCHEDULE OF INVESTMENTS |
(1)Non-income producing.
See Notes to Financial Statements.
7
Statement of Assets and Liabilities |
MAY 31, 2022 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $533,994,012) | $ | 634,627,318 | |||
Receivable for investments sold | 31,305,666 | ||||
Receivable for capital shares sold | 298,195 | ||||
Dividends and interest receivable | 1,233,543 | ||||
Receivable for foreign withholding tax recoveries | 395,314 | ||||
Other assets | 1,131 | ||||
667,861,167 | |||||
Liabilities | |||||
Payable for investments purchased | 30,509,481 | ||||
Payable for capital shares redeemed | 386,528 | ||||
Accrued management fees | 520,927 | ||||
Distribution and service fees payable | 11,625 | ||||
Accrued foreign taxes | 315,224 | ||||
Accrued foreign withholding tax reclaim expenses | 87,362 | ||||
31,831,147 | |||||
Net Assets | $ | 636,030,020 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 498,056,901 | |||
Distributable earnings | 137,973,119 | ||||
$ | 636,030,020 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $425,127,234 | 36,264,844 | $11.72 | ||||||||
I Class, $0.01 Par Value | $92,681,764 | 7,650,066 | $12.12 | ||||||||
Y Class, $0.01 Par Value | $368,966 | 30,137 | $12.24 | ||||||||
A Class, $0.01 Par Value | $28,204,201 | 2,544,635 | $11.08* | ||||||||
C Class, $0.01 Par Value | $3,821,475 | 464,040 | $8.24 | ||||||||
R Class, $0.01 Par Value | $6,447,143 | 605,543 | $10.65 | ||||||||
R5 Class, $0.01 Par Value | $9,353 | 772 | $12.12 | ||||||||
R6 Class, $0.01 Par Value | $79,369,884 | 6,493,795 | $12.22 |
*Maximum offering price $11.76 (net asset value divided by 0.9425).
See Notes to Financial Statements.
8
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $333,885) | $ | 5,467,765 | |||
Foreign withholding tax recoveries | 716,854 | ||||
Interest | 162,908 | ||||
6,347,527 | |||||
Expenses: | |||||
Management fees | 3,472,398 | ||||
Distribution and service fees: | |||||
A Class | 39,564 | ||||
C Class | 23,881 | ||||
R Class | 19,116 | ||||
Directors' fees and expenses | 7,680 | ||||
Foreign withholding tax reclaim expenses | 196,066 | ||||
Other expenses | 2,727 | ||||
3,761,432 | |||||
Net investment income (loss) | 2,586,095 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | 38,480,270 | ||||
Foreign currency translation transactions | (176,508) | ||||
38,303,762 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments (includes (increase) decrease in accrued foreign taxes of $152,711) | (122,704,468) | ||||
Translation of assets and liabilities in foreign currencies | (22,337) | ||||
(122,726,805) | |||||
Net realized and unrealized gain (loss) | (84,423,043) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (81,836,948) |
See Notes to Financial Statements.
9
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2021 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2022 | November 30, 2021 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 2,586,095 | $ | 2,347,878 | ||||
Net realized gain (loss) | 38,303,762 | 94,402,210 | ||||||
Change in net unrealized appreciation (depreciation) | (122,726,805) | 2,228,651 | ||||||
Net increase (decrease) in net assets resulting from operations | (81,836,948) | 98,978,739 | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (59,295,371) | (45,815,568) | ||||||
I Class | (12,265,976) | (9,140,352) | ||||||
Y Class | (36,897) | (16,008) | ||||||
A Class | (4,217,225) | (3,095,249) | ||||||
C Class | (855,686) | (729,583) | ||||||
R Class | (1,075,356) | (964,647) | ||||||
R5 Class | (1,247) | (890) | ||||||
R6 Class | (11,450,826) | (8,866,888) | ||||||
Decrease in net assets from distributions | (89,198,584) | (68,629,185) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 61,422,749 | 22,244,775 | ||||||
Net increase (decrease) in net assets | (109,612,783) | 52,594,329 | ||||||
Net Assets | ||||||||
Beginning of period | 745,642,803 | 693,048,474 | ||||||
End of period | $ | 636,030,020 | $ | 745,642,803 |
See Notes to Financial Statements.
10
Notes to Financial Statements |
MAY 31, 2022 (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 (NAV) 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 NAV 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 NAV 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 withholding tax recoveries represent the receipt of certain European Union (EU) withholding taxes previously withheld. The fund will record any EU reclaims only when certainty exists as to the likelihood of receipt.
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
12
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.
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, 2022 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |||||||
Investor Class | 1.050% to 1.300% | 1.06% | ||||||
I Class | 0.850% to 1.100% | 0.86% | ||||||
Y Class | 0.700% to 0.950% | 0.71% | ||||||
A Class | 1.050% to 1.300% | 1.06% | ||||||
C Class | 1.050% to 1.300% | 1.06% | ||||||
R Class | 1.050% to 1.300% | 1.06% | ||||||
R5 Class | 0.850% to 1.100% | 0.86% | ||||||
R6 Class | 0.700% to 0.950% | 0.71% |
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, 2022 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.
Foreign Withholding Tax Reclaim Expenses —The fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The fund may incur expenses in association with recovery of such taxes. The impact of foreign withholding tax reclaim expenses to the annualized ratio of operating expenses to average net assets was 0.06% for the period ended May 31, 2022.
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, 2022 were $145,708,827 and $176,631,869, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2022 | Year ended November 30, 2021 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 450,000,000 | 450,000,000 | ||||||||||||
Sold | 1,025,465 | $ | 13,074,901 | 1,945,842 | $ | 28,544,017 | ||||||||
Issued in reinvestment of distributions | 4,250,591 | 57,000,417 | 3,325,188 | 44,324,787 | ||||||||||
Redeemed | (2,054,663) | (26,382,299) | (4,017,264) | (59,355,560) | ||||||||||
3,221,393 | 43,693,019 | 1,253,766 | 13,513,244 | |||||||||||
I Class/Shares Authorized | 45,000,000 | 40,000,000 | ||||||||||||
Sold | 989,701 | 12,986,372 | 1,052,526 | 15,912,069 | ||||||||||
Issued in reinvestment of distributions | 885,350 | 12,262,099 | 666,184 | 9,133,407 | ||||||||||
Redeemed | (913,069) | (12,119,600) | (1,385,607) | (21,102,181) | ||||||||||
961,982 | 13,128,871 | 333,103 | 3,943,295 | |||||||||||
Y Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 9,940 | 135,636 | 10,282 | 163,455 | ||||||||||
Issued in reinvestment of distributions | 2,640 | 36,897 | 1,158 | 16,008 | ||||||||||
Redeemed | (2,361) | (31,157) | (2,611) | (38,508) | ||||||||||
10,219 | 141,376 | 8,829 | 140,955 | |||||||||||
A Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||
Sold | 178,863 | 2,145,677 | 396,873 | 5,527,341 | ||||||||||
Issued in reinvestment of distributions | 326,486 | 4,143,104 | 238,150 | 3,026,909 | ||||||||||
Redeemed | (348,174) | (4,257,103) | (437,494) | (6,205,899) | ||||||||||
157,175 | 2,031,678 | 197,529 | 2,348,351 | |||||||||||
C Class/Shares Authorized | 25,000,000 | 30,000,000 | ||||||||||||
Sold | 11,863 | 105,505 | 172,859 | 1,883,121 | ||||||||||
Issued in reinvestment of distributions | 89,588 | 847,510 | 72,540 | 721,044 | ||||||||||
Redeemed | (126,998) | (1,137,607) | (228,104) | (2,455,660) | ||||||||||
(25,547) | (184,592) | 17,295 | 148,505 | |||||||||||
R Class/Shares Authorized | 25,000,000 | 30,000,000 | ||||||||||||
Sold | 53,461 | 629,841 | 98,966 | 1,348,277 | ||||||||||
Issued in reinvestment of distributions | 88,071 | 1,075,356 | 78,345 | 964,421 | ||||||||||
Redeemed | (146,069) | (1,715,721) | (226,169) | (3,046,609) | ||||||||||
(4,537) | (10,524) | (48,858) | (733,911) | |||||||||||
R5 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Issued in reinvestment of distributions | 90 | 1,247 | 65 | 890 | ||||||||||
R6 Class/Shares Authorized | 60,000,000 | 65,000,000 | ||||||||||||
Sold | 641,473 | 8,650,132 | 1,837,852 | 27,779,007 | ||||||||||
Issued in reinvestment of distributions | 736,785 | 10,285,523 | 583,293 | 8,055,272 | ||||||||||
Redeemed | (1,189,961) | (16,313,981) | (2,133,776) | (32,950,833) | ||||||||||
188,297 | 2,621,674 | 287,369 | 2,883,446 | |||||||||||
Net increase (decrease) | 4,509,072 | $ | 61,422,749 | 2,049,098 | $ | 22,244,775 |
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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 | |||||||||||
Brazil | — | $ | 16,418,393 | — | |||||||
China | — | 12,792,849 | — | ||||||||
France | — | 35,219,056 | — | ||||||||
Hong Kong | — | 35,222,452 | — | ||||||||
India | — | 17,817,752 | — | ||||||||
Ireland | $ | 17,842,777 | 16,740,695 | — | |||||||
Italy | — | 17,910,316 | — | ||||||||
Spain | — | 16,359,319 | — | ||||||||
United Kingdom | — | 16,716,063 | — | ||||||||
Other Countries | 426,100,997 | — | — | ||||||||
Short-Term Investments | 875,297 | 4,611,352 | — | ||||||||
$ | 444,819,071 | $ | 189,808,247 | — |
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, war, 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 | $ | 536,993,682 | |||
Gross tax appreciation of investments | $ | 144,952,620 | |||
Gross tax depreciation of investments | (47,318,984) | ||||
Net tax appreciation (depreciation) of investments | $ | 97,633,636 |
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 | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $15.00 | 0.04 | (1.52) | (1.48) | (0.03) | (1.77) | (1.80) | $11.72 | (11.38)% | 1.12%(4) | 0.69%(4) | 21% | $425,127 | ||||||||||||||||||||||||||||
2021 | $14.56 | 0.04 | 1.84 | 1.88 | — | (1.44) | (1.44) | $15.00 | 14.18% | 1.07% | 0.26% | 40% | $495,712 | ||||||||||||||||||||||||||||
2020 | $13.54 | (0.02) | 3.16 | 3.14 | —(5) | (2.12) | (2.12) | $14.56 | 27.02% | 1.07% | (0.14)% | 73% | $462,781 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $15.46 | 0.06 | (1.57) | (1.51) | (0.06) | (1.77) | (1.83) | $12.12 | (11.32)% | 0.92%(4) | 0.89%(4) | 21% | $92,682 | ||||||||||||||||||||||||||||
2021 | $14.93 | 0.07 | 1.90 | 1.97 | — | (1.44) | (1.44) | $15.46 | 14.45% | 0.87% | 0.46% | 40% | $103,394 | ||||||||||||||||||||||||||||
2020 | $13.84 | —(5) | 3.24 | 3.24 | (0.03) | (2.12) | (2.15) | $14.93 | 27.21% | 0.87% | 0.06% | 73% | $94,888 | ||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $15.62 | 0.08 | (1.61) | (1.53) | (0.08) | (1.77) | (1.85) | $12.24 | (11.26)% | 0.77%(4) | 1.04%(4) | 21% | $369 | ||||||||||||||||||||||||||||
2021 | $15.05 | 0.08 | 1.93 | 2.01 | — | (1.44) | (1.44) | $15.62 | 14.62% | 0.72% | 0.61% | 40% | $311 | ||||||||||||||||||||||||||||
2020 | $13.93 | 0.03 | 3.26 | 3.29 | (0.05) | (2.12) | (2.17) | $15.05 | 27.48% | 0.72% | 0.21% | 73% | $167 | ||||||||||||||||||||||||||||
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%(4) | 0.49%(4) | 54%(7) | $6 | ||||||||||||||||||||||||||||
A Class | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $14.27 | 0.03 | (1.45) | (1.42) | — | (1.77) | (1.77) | $11.08 | (11.53)% | 1.37%(4) | 0.44%(4) | 21% | $28,204 | ||||||||||||||||||||||||||||
2021 | $13.94 | —(5) | 1.77 | 1.77 | — | (1.44) | (1.44) | $14.27 | 13.99% | 1.32% | 0.01% | 40% | $34,059 | ||||||||||||||||||||||||||||
2020 | $13.08 | (0.05) | 3.03 | 2.98 | — | (2.12) | (2.12) | $13.94 | 26.66% | 1.32% | (0.39)% | 73% | $30,537 | ||||||||||||||||||||||||||||
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 | —(5) | 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 | ||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $11.08 | (0.02) | (1.05) | (1.07) | — | (1.77) | (1.77) | $8.24 | (11.83)% | 2.12%(4) | (0.31)%(4) | 21% | $3,821 | ||||||||||||||||||||||||||||
2021 | $11.23 | (0.08) | 1.37 | 1.29 | — | (1.44) | (1.44) | $11.08 | 12.99% | 2.07% | (0.74)% | 40% | $5,426 | ||||||||||||||||||||||||||||
2020 | $11.00 | (0.11) | 2.46 | 2.35 | — | (2.12) | (2.12) | $11.23 | 25.84% | 2.07% | (1.14)% | 73% | $5,302 | ||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $13.79 | 0.01 | (1.38) | (1.37) | — | (1.77) | (1.77) | $10.65 | (11.58)% | 1.62%(4) | 0.19%(4) | 21% | $6,447 | ||||||||||||||||||||||||||||
2021 | $13.55 | (0.03) | 1.71 | 1.68 | — | (1.44) | (1.44) | $13.79 | 13.71% | 1.57% | (0.24)% | 40% | $8,411 | ||||||||||||||||||||||||||||
2020 | $12.80 | (0.07) | 2.94 | 2.87 | — | (2.12) | (2.12) | $13.55 | 26.34% | 1.57% | (0.64)% | 73% | $8,931 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
R5 Class | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $15.46 | 0.06 | (1.57) | (1.51) | (0.06) | (1.77) | (1.83) | $12.12 | (11.25)% | 0.92%(4) | 0.89%(4) | 21% | $9 | ||||||||||||||||||||||||||||
2021 | $14.93 | 0.07 | 1.90 | 1.97 | — | (1.44) | (1.44) | $15.46 | 14.45% | 0.87% | 0.46% | 40% | $11 | ||||||||||||||||||||||||||||
2020 | $13.84 | 0.01 | 3.23 | 3.24 | (0.03) | (2.12) | (2.15) | $14.93 | 27.21% | 0.87% | 0.06% | 73% | $9 | ||||||||||||||||||||||||||||
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%(4) | 0.34%(4) | 54%(7) | $6 | ||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $15.59 | 0.07 | (1.59) | (1.52) | (0.08) | (1.77) | (1.85) | $12.22 | (11.22)% | 0.77%(4) | 1.04%(4) | 21% | $79,370 | ||||||||||||||||||||||||||||
2021 | $15.03 | 0.09 | 1.91 | 2.00 | — | (1.44) | (1.44) | $15.59 | 14.57% | 0.72% | 0.61% | 40% | $98,318 | ||||||||||||||||||||||||||||
2020 | $13.92 | 0.03 | 3.25 | 3.28 | (0.05) | (2.12) | (2.17) | $15.03 | 27.44% | 0.72% | 0.21% | 73% | $90,433 | ||||||||||||||||||||||||||||
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 |
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, 2022 (unaudited).
(4)Annualized.
(5)Per-share amount was less than $0.005.
(6)April 10, 2017 (commencement of sale) through November 30, 2017.
(7)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2017.
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 the Program Administrator, including members of 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 certain Fund’s investments is supported by a third-party liquidity assessment vendor.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period January 1, 2021 through December 31, 2021. 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. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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. | ||||||||
©2022 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92631 2207 |
![acihorizblkd50.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/acihorizblkd50.jpg)
Semiannual Report | |||||
May 31, 2022 | |||||
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) |
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 |
![image26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image26.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2022. 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.
Soaring Prices, Sharp Volatility Sank Stock Returns
Global investors faced an unusual set of challenges in the six-month period. From soaring inflation and rising interest rates to mounting geopolitical unrest and slowing growth, global stocks struggled amid intense volatility.
Inflation was already at multiyear highs when the reporting period began. This was largely due to massive fiscal and monetary support, escalating energy prices, supply chain breakdowns and labor market shortages. Russia’s invasion of Ukraine in February sent commodity prices even higher, exacerbating existing inflationary pressures and further damaging global supply chains.
By period-end, inflation lingered at a 40-year high in the U.S. and the U.K. and a record high in the eurozone. Most emerging markets also grappled with rising inflation. At the same time, global economic growth slowed dramatically, further complicated by COVID-19-related lockdowns that shut down key manufacturing hubs in China.
The Federal Reserve responded to surging inflation in March, launching a rate-hike campaign and ending its bond-buying program. The Bank of England executed a series of rate hikes, while the European Central Bank said it would end its bond buying in the third quarter.
The combination of accelerating inflation, tighter monetary policy, geopolitical strife and slowing economic growth fueled widespread and sharp market volatility. Global stock returns broadly declined for the six-month period. Developed markets stocks generally fared better than emerging markets stocks, while U.S. stocks underperformed other developed markets.
Staying Disciplined in Uncertain Times
We expect market volatility to linger as investors navigate this complex environment of high inflation, rising interest rates and economic uncertainty. In addition, Russia’s invasion of Ukraine complicates a tense geopolitical backdrop. We will continue to monitor this evolving situation and its implications for our clients and investment exposure.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
![image35.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image35.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2022 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 99.7% | ||||
Short-Term Investments | 2.3% | ||||
Other Assets and Liabilities | (2.0)% | ||||
Top Five Countries | % of net assets | ||||
France | 23.4% | ||||
United Kingdom | 12.3% | ||||
Switzerland | 8.4% | ||||
Netherlands | 7.3% | ||||
Germany | 7.1% |
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, 2021 to May 31, 2022.
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 12/1/21 | Ending Account Value 5/31/22 | Expenses Paid During Period(1) 12/1/21 - 5/31/22 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $779.00 | $4.83 | 1.09% | ||||||||||
I Class | $1,000 | $779.70 | $3.95 | 0.89% | ||||||||||
A Class | $1,000 | $777.90 | $5.94 | 1.34% | ||||||||||
C Class | $1,000 | $774.70 | $9.25 | 2.09% | ||||||||||
R Class | $1,000 | $776.80 | $7.04 | 1.59% | ||||||||||
R6 Class | $1,000 | $780.60 | $3.29 | 0.74% | ||||||||||
G Class | $1,000 | $783.30 | $0.00 | 0.00%(2) | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,019.50 | $5.49 | 1.09% | ||||||||||
I Class | $1,000 | $1,020.49 | $4.48 | 0.89% | ||||||||||
A Class | $1,000 | $1,018.25 | $6.74 | 1.34% | ||||||||||
C Class | $1,000 | $1,014.51 | $10.50 | 2.09% | ||||||||||
R Class | $1,000 | $1,017.00 | $8.00 | 1.59% | ||||||||||
R6 Class | $1,000 | $1,021.24 | $3.73 | 0.74% | ||||||||||
G Class | $1,000 | $1,024.93 | $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 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
(2)Other expenses, which include directors' fees and expenses, did not exceed 0.005%.
5
Schedule of Investments |
MAY 31, 2022 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.7% | ||||||||
Australia — 4.8% | ||||||||
Atlassian Corp. PLC, Class A(1) | 4,660 | $ | 826,311 | |||||
CSL Ltd. | 9,570 | 1,861,796 | ||||||
2,688,107 | ||||||||
Canada — 5.8% | ||||||||
Canadian Pacific Railway Ltd. | 27,650 | 1,972,892 | ||||||
GFL Environmental, Inc. | 42,029 | 1,284,827 | ||||||
3,257,719 | ||||||||
China — 2.2% | ||||||||
Li Ning Co. Ltd. | 160,500 | 1,252,249 | ||||||
Denmark — 4.2% | ||||||||
Novo Nordisk A/S, B Shares | 21,370 | 2,373,149 | ||||||
France — 23.4% | ||||||||
Air Liquide SA(2) | 7,420 | 1,299,745 | ||||||
Bureau Veritas SA | 56,140 | 1,622,222 | ||||||
Capgemini SE | 8,360 | 1,624,454 | ||||||
Dassault Systemes SE | 27,400 | 1,155,284 | ||||||
EssilorLuxottica SA | 7,500 | 1,211,356 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 2,310 | 1,491,396 | ||||||
Pernod Ricard SA | 3,430 | 673,609 | ||||||
Schneider Electric SE | 14,280 | 1,983,374 | ||||||
Teleperformance | 2,810 | 932,981 | ||||||
Thales SA | 9,460 | 1,155,203 | ||||||
13,149,624 | ||||||||
Germany — 7.1% | ||||||||
Infineon Technologies AG | 28,985 | 903,265 | ||||||
Mercedes-Benz Group AG | 15,680 | 1,117,347 | ||||||
Puma SE | 11,030 | 823,100 | ||||||
Symrise AG | 10,650 | 1,176,842 | ||||||
4,020,554 | ||||||||
India — 2.0% | ||||||||
HDFC Bank Ltd., ADR | 19,670 | 1,132,402 | ||||||
Indonesia — 2.6% | ||||||||
Bank Central Asia Tbk PT | 2,773,000 | 1,467,197 | ||||||
Ireland — 3.5% | ||||||||
ICON PLC(1) | 8,690 | 1,944,735 | ||||||
Japan — 5.7% | ||||||||
Keyence Corp. | 3,500 | 1,391,517 | ||||||
Kobe Bussan Co. Ltd. | 44,900 | 1,088,671 | ||||||
MonotaRO Co. Ltd. | 48,500 | 708,103 | ||||||
3,188,291 | ||||||||
Netherlands — 7.3% | ||||||||
Adyen NV(1) | 849 | 1,314,817 | ||||||
Koninklijke DSM NV | 8,380 | 1,411,201 | ||||||
Universal Music Group NV | 61,750 | 1,380,494 | ||||||
4,106,512 | ||||||||
Spain — 5.3% | ||||||||
Cellnex Telecom SA | 22,140 | 999,159 |
6
Shares | Value | |||||||
Iberdrola SA | 166,484 | $ | 1,972,587 | |||||
2,971,746 | ||||||||
Sweden — 1.9% | ||||||||
Hexagon AB, B Shares(2) | 86,760 | 1,058,584 | ||||||
Switzerland — 8.4% | ||||||||
Alcon, Inc. | 18,358 | 1,377,595 | ||||||
Lonza Group AG | 2,900 | 1,748,426 | ||||||
Partners Group Holding AG | 620 | 667,107 | ||||||
Sika AG | 3,400 | 943,802 | ||||||
4,736,930 | ||||||||
Taiwan — 3.2% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 94,000 | 1,777,627 | ||||||
United Kingdom — 12.3% | ||||||||
Ashtead Group PLC | 17,990 | 942,623 | ||||||
AstraZeneca PLC | 17,640 | 2,331,367 | ||||||
Compass Group PLC | 49,520 | 1,110,056 | ||||||
HSBC Holdings PLC | 184,400 | 1,230,757 | ||||||
Segro PLC | 93,220 | 1,302,005 | ||||||
6,916,808 | ||||||||
TOTAL COMMON STOCKS (Cost $58,879,831) | 56,042,234 | |||||||
SHORT-TERM INVESTMENTS — 2.3% | ||||||||
Money Market Funds — 2.2% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 141,076 | 141,076 | ||||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) | 1,088,307 | 1,088,307 | ||||||
1,229,383 | ||||||||
Repurchase Agreements — 0.1% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.50% - 4.375%, 2/15/38 - 2/15/45, valued at $68,758), in a joint trading account at 0.74%, dated 5/31/22, due 6/1/22 (Delivery value $67,429) | 67,428 | |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $1,296,811) | 1,296,811 | |||||||
TOTAL INVESTMENT SECURITIES — 102.0% (Cost $60,176,642) | 57,339,045 | |||||||
OTHER ASSETS AND LIABILITIES — (2.0)% | (1,139,510) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 56,199,535 |
7
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Health Care | 20.6% | ||||
Industrials | 19.0% | ||||
Information Technology | 18.0% | ||||
Consumer Discretionary | 12.3% | ||||
Materials | 8.6% | ||||
Financials | 8.0% | ||||
Communication Services | 4.3% | ||||
Utilities | 3.5% | ||||
Consumer Staples | 3.1% | ||||
Real Estate | 2.3% | ||||
Short-Term Investments | 2.3% | ||||
Other Assets and Liabilities | (2.0)% |
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
ADR | - | American Depositary Receipt |
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $2,044,966. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $2,171,215, which includes securities collateral of $1,082,908.
See Notes to Financial Statements.
8
Statement of Assets and Liabilities |
MAY 31, 2022 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $59,088,335) — including $2,044,966 of securities on loan | $ | 56,250,738 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $1,088,307) | 1,088,307 | ||||
Total investment securities, at value (cost of $60,176,642) | 57,339,045 | ||||
Foreign currency holdings, at value (cost of $18) | 18 | ||||
Receivable for investments sold | 128,725 | ||||
Receivable for capital shares sold | 15,443 | ||||
Dividends and interest receivable | 136,624 | ||||
Securities lending receivable | 1,185 | ||||
57,621,040 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 1,088,307 | ||||
Payable for investments purchased | 200,408 | ||||
Payable for capital shares redeemed | 104,052 | ||||
Accrued management fees | 28,266 | ||||
Distribution and service fees payable | 472 | ||||
1,421,505 | |||||
Net Assets | $ | 56,199,535 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 63,411,062 | |||
Distributable earnings | (7,211,527) | ||||
$ | 56,199,535 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $16,435,733 | 1,079,511 | $15.23 | ||||||||
I Class, $0.01 Par Value | $16,345,318 | 1,064,550 | $15.35 | ||||||||
A Class, $0.01 Par Value | $81,250 | 5,397 | $15.05* | ||||||||
C Class, $0.01 Par Value | $46,778 | 3,232 | $14.47 | ||||||||
R Class, $0.01 Par Value | $1,019,710 | 68,469 | $14.89 | ||||||||
R6 Class, $0.01 Par Value | $548,085 | 35,504 | $15.44 | ||||||||
G Class, $0.01 Par Value | $21,722,661 | 1,379,221 | $15.75 |
*Maximum offering price $15.97 (net asset value divided by 0.9425).
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $67,169) | $ | 764,805 | |||
Securities lending, net | 1,767 | ||||
Interest | 655 | ||||
767,227 | |||||
Expenses: | |||||
Management fees | 275,252 | ||||
Distribution and service fees: | |||||
A Class | 112 | ||||
C Class | 261 | ||||
R Class | 2,685 | ||||
Directors' fees and expenses | 657 | ||||
Other expenses | 462 | ||||
279,429 | |||||
Fees waived - G Class | (75,315) | ||||
204,114 | |||||
Net investment income (loss) | 563,113 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | (4,817,146) | ||||
Foreign currency translation transactions | (7,644) | ||||
(4,824,790) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | (10,727,458) | ||||
Translation of assets and liabilities in foreign currencies | (8,224) | ||||
(10,735,682) | |||||
Net realized and unrealized gain (loss) | (15,560,472) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (14,997,359) |
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2021 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2022 | November 30, 2021 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 563,113 | $ | 105,240 | ||||
Net realized gain (loss) | (4,824,790) | 1,481,312 | ||||||
Change in net unrealized appreciation (depreciation) | (10,735,682) | 755,241 | ||||||
Net increase (decrease) in net assets resulting from operations | (14,997,359) | 2,341,793 | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (557,832) | — | ||||||
I Class | (488,383) | — | ||||||
A Class | (2,055) | — | ||||||
C Class | (1,520) | — | ||||||
R Class | (29,816) | — | ||||||
R6 Class | (17,151) | — | ||||||
G Class | (511,608) | (8,055) | ||||||
Decrease in net assets from distributions | (1,608,365) | (8,055) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 12,781,290 | 36,992,889 | ||||||
Net increase (decrease) in net assets | (3,824,434) | 39,326,627 | ||||||
Net Assets | ||||||||
Beginning of period | 60,023,969 | 20,697,342 | ||||||
End of period | $ | 56,199,535 | $ | 60,023,969 |
See Notes to Financial Statements.
11
Notes to Financial Statements |
MAY 31, 2022 (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.
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 (NAV) 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 NAV 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 NAV 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.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 31, 2022.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 1,088,307 | — | — | — | $ | 1,088,307 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 1,088,307 |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
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, 8% of the shares of the fund.
14
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 | ||||||||||||||
1.09% | 0.89% | 1.09% | 1.09% | 1.09% | 0.74% | 0.00%(1) |
(1)Annual management fee before waiver was 0.74%.
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, 2022 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 $64,715 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, 2022 were $36,014,320 and $22,335,659, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2022 | Year ended November 30, 2021 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||||||
Sold | 352,459 | $ | 6,059,127 | 857,589 | $ | 17,115,465 | ||||||||
Issued in reinvestment of distributions | 28,000 | 542,364 | — | — | ||||||||||
Redeemed | (411,198) | (6,985,847) | (282,928) | (5,620,204) | ||||||||||
(30,739) | (384,356) | 574,661 | 11,495,261 | |||||||||||
I Class/Shares Authorized | 25,000,000 | 30,000,000 | ||||||||||||
Sold | 320,068 | 5,758,977 | 807,288 | 16,390,886 | ||||||||||
Issued in reinvestment of distributions | 25,020 | 488,383 | — | — | ||||||||||
Redeemed | (227,137) | (3,807,416) | (165,920) | (3,429,687) | ||||||||||
117,951 | 2,439,944 | 641,368 | 12,961,199 | |||||||||||
A Class/Shares Authorized | 20,000,000 | 30,000,000 | ||||||||||||
Sold | 1,875 | 36,001 | 517 | 10,148 | ||||||||||
Issued in reinvestment of distributions | 107 | 2,055 | — | — | ||||||||||
Redeemed | (1,570) | (30,039) | (241) | (4,730) | ||||||||||
412 | 8,017 | 276 | 5,418 | |||||||||||
C Class/Shares Authorized | 20,000,000 | 30,000,000 | ||||||||||||
Sold | 209 | 3,453 | 438 | 8,519 | ||||||||||
Issued in reinvestment of distributions | 82 | 1,520 | — | — | ||||||||||
Redeemed | (97) | (1,614) | (208) | (3,915) | ||||||||||
194 | 3,359 | 230 | 4,604 | |||||||||||
R Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 18,729 | 316,508 | 32,272 | 629,630 | ||||||||||
Issued in reinvestment of distributions | 1,566 | 29,742 | — | — | ||||||||||
Redeemed | (10,218) | (175,503) | (11,945) | (241,001) | ||||||||||
10,077 | 170,747 | 20,327 | 388,629 | |||||||||||
R6 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 1,793 | 30,863 | 41,763 | 879,551 | ||||||||||
Issued in reinvestment of distributions | 875 | 17,151 | — | — | ||||||||||
Redeemed | (348) | (6,352) | (18,901) | (383,494) | ||||||||||
2,320 | 41,662 | 22,862 | 496,057 | |||||||||||
G Class/Shares Authorized | 30,000,000 | 40,000,000 | ||||||||||||
Sold | 578,931 | 10,529,574 | 638,105 | 13,047,998 | ||||||||||
Issued in reinvestment of distributions | 25,645 | 511,608 | 414 | 8,055 | ||||||||||
Redeemed | (29,804) | (539,265) | (67,687) | (1,414,332) | ||||||||||
574,772 | 10,501,917 | 570,832 | 11,641,721 | |||||||||||
Net increase (decrease) | 674,987 | $ | 12,781,290 | 1,830,556 | $ | 36,992,889 |
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,
16
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 | $ | 826,311 | $ | 1,861,796 | — | ||||||
Canada | 1,284,827 | 1,972,892 | — | ||||||||
India | 1,132,402 | — | — | ||||||||
Ireland | 1,944,735 | — | — | ||||||||
Other Countries | — | 47,019,271 | — | ||||||||
Short-Term Investments | 1,229,383 | 67,428 | — | ||||||||
$ | 6,417,658 | $ | 50,921,387 | — |
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, war, 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.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 60,863,656 | |||
Gross tax appreciation of investments | $ | 2,325,872 | |||
Gross tax depreciation of investments | (5,850,483) | ||||
Net tax appreciation (depreciation) of investments | $ | (3,524,611) |
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 | 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 | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $20.04 | 0.12 | (4.43) | (4.31) | — | (0.50) | (0.50) | $15.23 | (22.10)% | 1.09%(4) | 1.09%(4) | 1.44%(4) | 1.44%(4) | 38% | $16,436 | ||||||||||||||||||||||||||||||||
2021 | $18.20 | (0.03) | 1.87 | 1.84 | — | — | — | $20.04 | 10.11% | 1.10% | 1.10% | (0.12)% | (0.12)% | 71% | $22,250 | ||||||||||||||||||||||||||||||||
2020 | $14.34 | (0.01) | 4.33 | 4.32 | — | (0.46) | (0.46) | $18.20 | 31.15% | 1.18% | 1.18% | (0.09)% | (0.09)% | 92% | $9,749 | ||||||||||||||||||||||||||||||||
2019 | $11.92 | 0.02 | 2.46 | 2.48 | (0.06) | — | (0.06) | $14.34 | 20.96% | 1.24% | 1.24% | 0.13% | 0.13% | 96% | $6,677 | ||||||||||||||||||||||||||||||||
2018 | $12.81 | 0.08 | (0.97) | (0.89) | — | — | — | $11.92 | (6.95)% | 1.23% | 1.23% | 0.59% | 0.59% | 82% | $6,180 | ||||||||||||||||||||||||||||||||
2017 | $9.75 | 0.01 | 3.13 | 3.14 | (0.08) | — | (0.08) | $12.81 | 32.40% | 1.24% | 1.24% | 0.14% | 0.14% | 76% | $5,882 | ||||||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $20.19 | 0.14 | (4.48) | (4.34) | — | (0.50) | (0.50) | $15.35 | (22.03)% | 0.89%(4) | 0.89%(4) | 1.64%(4) | 1.64%(4) | 38% | $16,345 | ||||||||||||||||||||||||||||||||
2021 | $18.30 | 0.01 | 1.88 | 1.89 | — | — | — | $20.19 | 10.33% | 0.90% | 0.90% | 0.08% | 0.08% | 71% | $19,111 | ||||||||||||||||||||||||||||||||
2020 | $14.39 | 0.01 | 4.36 | 4.37 | — | (0.46) | (0.46) | $18.30 | 31.39% | 0.98% | 0.98% | 0.11% | 0.11% | 92% | $5,585 | ||||||||||||||||||||||||||||||||
2019 | $11.96 | 0.02 | 2.49 | 2.51 | (0.08) | — | (0.08) | $14.39 | 21.21% | 1.04% | 1.04% | 0.33% | 0.33% | 96% | $2,605 | ||||||||||||||||||||||||||||||||
2018 | $12.83 | 0.09 | (0.96) | (0.87) | — | — | — | $11.96 | (6.78)% | 1.03% | 1.03% | 0.79% | 0.79% | 82% | $776 | ||||||||||||||||||||||||||||||||
2017 | $9.76 | 0.05 | 3.11 | 3.16 | (0.09) | — | (0.09) | $12.83 | 32.74% | 1.04% | 1.04% | 0.34% | 0.34% | 76% | $777 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $19.85 | 0.11 | (4.41) | (4.30) | — | (0.50) | (0.50) | $15.05 | (22.21)% | 1.34%(4) | 1.34%(4) | 1.19%(4) | 1.19%(4) | 38% | $81 | ||||||||||||||||||||||||||||||||
2021 | $18.07 | (0.07) | 1.85 | 1.78 | — | — | — | $19.85 | 9.85% | 1.35% | 1.35% | (0.37)% | (0.37)% | 71% | $99 | ||||||||||||||||||||||||||||||||
2020 | $14.28 | (0.04) | 4.29 | 4.25 | — | (0.46) | (0.46) | $18.07 | 30.78% | 1.43% | 1.43% | (0.34)% | (0.34)% | 92% | $85 | ||||||||||||||||||||||||||||||||
2019 | $11.87 | —(5) | 2.44 | 2.44 | (0.03) | — | (0.03) | $14.28 | 20.66% | 1.49% | 1.49% | (0.12)% | (0.12)% | 96% | $822 | ||||||||||||||||||||||||||||||||
2018 | $12.79 | 0.03 | (0.95) | (0.92) | — | — | — | $11.87 | (7.19)% | 1.48% | 1.48% | 0.34% | 0.34% | 82% | $1,217 | ||||||||||||||||||||||||||||||||
2017 | $9.73 | (0.01) | 3.12 | 3.11 | (0.05) | — | (0.05) | $12.79 | 32.13% | 1.49% | 1.49% | (0.11)% | (0.11)% | 76% | $1,295 | ||||||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $19.17 | 0.04 | (4.24) | (4.20) | — | (0.50) | (0.50) | $14.47 | (22.53)% | 2.09%(4) | 2.09%(4) | 0.44%(4) | 0.44%(4) | 38% | $47 | ||||||||||||||||||||||||||||||||
2021 | $17.59 | (0.22) | 1.80 | 1.58 | — | — | — | $19.17 | 9.04% | 2.10% | 2.10% | (1.12)% | (1.12)% | 71% | $58 | ||||||||||||||||||||||||||||||||
2020 | $14.01 | (0.14) | 4.18 | 4.04 | — | (0.46) | (0.46) | $17.59 | 29.84% | 2.18% | 2.18% | (1.09)% | (1.09)% | 92% | $49 | ||||||||||||||||||||||||||||||||
2019 | $11.70 | (0.09) | 2.40 | 2.31 | — | — | — | $14.01 | 19.85% | 2.24% | 2.24% | (0.87)% | (0.87)% | 96% | $787 | ||||||||||||||||||||||||||||||||
2018 | $12.70 | (0.07) | (0.93) | (1.00) | — | — | — | $11.70 | (7.95)% | 2.23% | 2.23% | (0.41)% | (0.41)% | 82% | $1,170 | ||||||||||||||||||||||||||||||||
2017 | $9.68 | (0.09) | 3.11 | 3.02 | — | — | — | $12.70 | 31.20% | 2.24% | 2.24% | (0.86)% | (0.86)% | 76% | $1,270 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | 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 | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $19.67 | 0.08 | (4.36) | (4.28) | — | (0.50) | (0.50) | $14.89 | (22.32)% | 1.59%(4) | 1.59%(4) | 0.94%(4) | 0.94%(4) | 38% | $1,020 | ||||||||||||||||||||||||||||||||
2021 | $17.95 | (0.12) | 1.84 | 1.72 | — | — | — | $19.67 | 9.58% | 1.60% | 1.60% | (0.62)% | (0.62)% | 71% | $1,148 | ||||||||||||||||||||||||||||||||
2020 | $14.22 | (0.08) | 4.27 | 4.19 | — | (0.46) | (0.46) | $17.95 | 30.47% | 1.68% | 1.68% | (0.59)% | (0.59)% | 92% | $683 | ||||||||||||||||||||||||||||||||
2019 | $11.82 | (0.04) | 2.44 | 2.40 | —(5) | — | —(5) | $14.22 | 20.36% | 1.74% | 1.74% | (0.37)% | (0.37)% | 96% | $468 | ||||||||||||||||||||||||||||||||
2018 | $12.77 | —(5) | (0.95) | (0.95) | — | — | — | $11.82 | (7.44)% | 1.73% | 1.73% | 0.09% | 0.09% | 82% | $406 | ||||||||||||||||||||||||||||||||
2017 | $9.72 | (0.04) | 3.12 | 3.08 | (0.03) | — | (0.03) | $12.77 | 31.73% | 1.74% | 1.74% | (0.36)% | (0.36)% | 76% | $298 | ||||||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $20.30 | 0.16 | (4.50) | (4.34) | (0.02) | (0.50) | (0.52) | $15.44 | (21.94)% | 0.74%(4) | 0.74%(4) | 1.79%(4) | 1.79%(4) | 38% | $548 | ||||||||||||||||||||||||||||||||
2021 | $18.37 | 0.02 | 1.91 | 1.93 | — | — | — | $20.30 | 10.51% | 0.75% | 0.75% | 0.23% | 0.23% | 71% | $674 | ||||||||||||||||||||||||||||||||
2020 | $14.42 | 0.05 | 4.36 | 4.41 | — | (0.46) | (0.46) | $18.37 | 31.61% | 0.83% | 0.83% | 0.26% | 0.26% | 92% | $190 | ||||||||||||||||||||||||||||||||
2019 | $11.99 | 0.08 | 2.45 | 2.53 | (0.10) | — | (0.10) | $14.42 | 21.34% | 0.89% | 0.89% | 0.48% | 0.48% | 96% | $182 | ||||||||||||||||||||||||||||||||
2018 | $12.84 | 0.11 | (0.96) | (0.85) | — | — | — | $11.99 | (6.62)% | 0.88% | 0.88% | 0.94% | 0.94% | 82% | $242 | ||||||||||||||||||||||||||||||||
2017 | $9.77 | 0.06 | 3.12 | 3.18 | (0.11) | — | (0.11) | $12.84 | 32.90% | 0.89% | 0.89% | 0.49% | 0.49% | 76% | $260 | ||||||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | $20.74 | 0.22 | (4.58) | (4.36) | (0.13) | (0.50) | (0.63) | $15.75 | (21.67)% | 0.00%(4)(6) | 0.74%(4) | 2.53%(4) | 1.79%(4) | 38% | $21,723 | ||||||||||||||||||||||||||||||||
2021 | $18.65 | 0.21 | 1.89 | 2.10 | (0.01) | — | (0.01) | $20.74 | 11.28% | 0.01% | 0.75% | 0.97% | 0.23% | 71% | $16,684 | ||||||||||||||||||||||||||||||||
2020 | $14.51 | 0.17 | 4.43 | 4.60 | — | (0.46) | (0.46) | $18.65 | 32.75% | 0.00% | 0.83% | 1.09% | 0.26% | 92% | $4,356 | ||||||||||||||||||||||||||||||||
2019(7) | $12.94 | 0.12 | 1.45 | 1.57 | — | — | — | $14.51 | 12.13% | 0.01%(4) | 0.89%(4) | 1.29%(4) | 0.41%(4) | 96%(8) | $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, 2022 (unaudited).
(4)Annualized.
(5)Per-share amount was less than $0.005.
(6)Ratio was less than 0.005%.
(7)April 1, 2019 (commencement of sale) through November 30, 2019.
(8)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 the Program Administrator, including members of 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 certain Fund’s investments is supported by a third-party liquidity assessment vendor.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period January 1, 2021 through December 31, 2021. 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. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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. | ||||||||
©2022 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92637 2207 |
![acihorizblkd50.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/acihorizblkd50.jpg)
Semiannual Report | |||||
May 31, 2022 | |||||
Global Small Cap Fund | |||||
Investor Class (AGCVX) | |||||
I Class (AGCSX) | |||||
A Class (AGCLX) | |||||
C Class (AGCHX) | |||||
R Class (AGCWX) | |||||
R6 Class (AGCTX) |
Table of Contents |
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 |
![image26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image26.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2022. 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.
Soaring Prices, Sharp Volatility Sank Stock Returns
Global investors faced an unusual set of challenges in the six-month period. From soaring inflation and rising interest rates to mounting geopolitical unrest and slowing growth, global stocks struggled amid intense volatility.
Inflation was already at multiyear highs when the reporting period began. This was largely due to massive fiscal and monetary support, escalating energy prices, supply chain breakdowns and labor market shortages. Russia’s invasion of Ukraine in February sent commodity prices even higher, exacerbating existing inflationary pressures and further damaging global supply chains.
By period-end, inflation lingered at a 40-year high in the U.S. and the U.K. and a record high in the eurozone. Most emerging markets also grappled with rising inflation. At the same time, global economic growth slowed dramatically, further complicated by COVID-19-related lockdowns that shut down key manufacturing hubs in China.
The Federal Reserve responded to surging inflation in March, launching a rate-hike campaign and ending its bond-buying program. The Bank of England executed a series of rate hikes, while the European Central Bank said it would end its bond buying in the third quarter.
The combination of accelerating inflation, tighter monetary policy, geopolitical strife and slowing economic growth fueled widespread and sharp market volatility. Global stock returns broadly declined for the six-month period. Developed markets stocks generally fared better than emerging markets stocks, while U.S. stocks underperformed other developed markets.
Staying Disciplined in Uncertain Times
We expect market volatility to linger as investors navigate this complex environment of high inflation, rising interest rates and economic uncertainty. In addition, Russia’s invasion of Ukraine complicates a tense geopolitical backdrop. We will continue to monitor this evolving situation and its implications for our clients and investment exposure.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
![image35.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image35.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2022 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 95.6% | ||||
Exchange-Traded Funds | 0.7% | ||||
Short-Term Investments | 3.0% | ||||
Other Assets and Liabilities | 0.7% | ||||
Top Five Countries* | % of net assets | ||||
United States | 48.7% | ||||
Canada | 12.7% | ||||
Japan | 5.4% | ||||
Australia | 3.4% | ||||
Brazil | 2.8% |
*Exposure indicated excludes Exchange-Traded Funds. The Schedule of Investments provides additional information on the fund's portfolio holdings.
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, 2021 to May 31, 2022.
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 12/1/21 | Ending Account Value 5/31/22 | Expenses Paid During Period(1) 12/1/21 - 5/31/22 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $782.90 | $4.89 | 1.10% | ||||||||||
I Class | $1,000 | $783.40 | $4.00 | 0.90% | ||||||||||
A Class | $1,000 | $782.00 | $6.00 | 1.35% | ||||||||||
C Class | $1,000 | $778.60 | $9.31 | 2.10% | ||||||||||
R Class | $1,000 | $780.90 | $7.10 | 1.60% | ||||||||||
R6 Class | $1,000 | $783.80 | $3.34 | 0.75% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,019.45 | $5.54 | 1.10% | ||||||||||
I Class | $1,000 | $1,020.44 | $4.53 | 0.90% | ||||||||||
A Class | $1,000 | $1,018.20 | $6.79 | 1.35% | ||||||||||
C Class | $1,000 | $1,014.46 | $10.55 | 2.10% | ||||||||||
R Class | $1,000 | $1,016.95 | $8.05 | 1.60% | ||||||||||
R6 Class | $1,000 | $1,021.19 | $3.78 | 0.75% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
5
Schedule of Investments |
MAY 31, 2022 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 95.6% | ||||||||
Australia — 3.4% | ||||||||
carsales.com Ltd. | 15,235 | $ | 222,686 | |||||
Corporate Travel Management Ltd.(1) | 31,767 | 504,608 | ||||||
IDP Education Ltd. | 29,490 | 502,131 | ||||||
IGO Ltd. | 86,962 | 779,763 | ||||||
Metcash Ltd. | 119,039 | 367,178 | ||||||
2,376,366 | ||||||||
Belgium — 1.2% | ||||||||
D'ieteren Group | 5,430 | 848,396 | ||||||
Brazil — 2.8% | ||||||||
Multiplan Empreendimentos Imobiliarios SA | 214,100 | 1,083,891 | ||||||
Santos Brasil Participacoes SA | 301,200 | 465,183 | ||||||
SLC Agricola SA | 37,300 | 434,567 | ||||||
1,983,641 | ||||||||
Canada — 12.7% | ||||||||
Boardwalk Real Estate Investment Trust | 23,144 | 917,819 | ||||||
Capstone Mining Corp.(1) | 173,396 | 656,653 | ||||||
Colliers International Group, Inc. (Toronto) | 1,773 | 215,771 | ||||||
Definity Financial Corp. | 37,383 | 998,082 | ||||||
Gibson Energy, Inc. | 33,496 | 709,458 | ||||||
Kinaxis, Inc.(1) | 4,418 | 490,648 | ||||||
Laurentian Bank of Canada(2) | 14,865 | 453,760 | ||||||
SSR Mining, Inc. | 30,387 | 590,419 | ||||||
Stantec, Inc. | 13,378 | 607,528 | ||||||
Tricon Residential, Inc. (Toronto) | 78,090 | 968,060 | ||||||
Vermilion Energy, Inc. | 39,230 | 848,585 | ||||||
Whitecap Resources, Inc.(2) | 159,474 | 1,418,415 | ||||||
8,875,198 | ||||||||
Finland — 0.6% | ||||||||
Metso Outotec Oyj | 45,905 | 428,326 | ||||||
France — 1.9% | ||||||||
Nexans SA | 8,789 | 883,259 | ||||||
SPIE SA | 18,369 | 447,316 | ||||||
1,330,575 | ||||||||
Germany — 0.7% | ||||||||
K+S AG | 17,699 | 497,824 | ||||||
Hong Kong — 0.8% | ||||||||
Samsonite International SA(1) | 245,700 | 559,819 | ||||||
India — 0.9% | ||||||||
WNS Holdings Ltd., ADR(1) | 8,836 | 642,996 | ||||||
Israel — 0.8% | ||||||||
Nova Ltd.(1) | 5,288 | 561,691 | ||||||
Italy — 1.0% | ||||||||
Autogrill SpA(1) | 96,241 | 724,146 | ||||||
Japan — 5.4% | ||||||||
Asics Corp. | 21,300 | 365,743 | ||||||
Invincible Investment Corp. | 1,413 | 469,417 |
6
Shares | Value | |||||||
Jeol Ltd. | 13,000 | $ | 628,030 | |||||
Nextage Co. Ltd. | 24,200 | 382,357 | ||||||
Nippon Gas Co. Ltd. | 44,800 | 665,547 | ||||||
Open House Group Co. Ltd. | 6,300 | 262,249 | ||||||
Toyo Suisan Kaisha Ltd. | 9,200 | 344,227 | ||||||
West Holdings Corp.(2) | 18,100 | 649,383 | ||||||
3,766,953 | ||||||||
Mexico — 0.4% | ||||||||
Qualitas Controladora SAB de CV | 62,628 | 313,132 | ||||||
Netherlands — 2.4% | ||||||||
ASR Nederland NV | 16,295 | 741,953 | ||||||
Basic-Fit NV(1) | 11,390 | 477,513 | ||||||
Constellium SE(1) | 26,451 | 446,757 | ||||||
1,666,223 | ||||||||
New Zealand — 0.5% | ||||||||
Contact Energy Ltd. | 65,505 | 317,498 | ||||||
Norway — 2.5% | ||||||||
Aker Solutions ASA | 201,814 | 792,285 | ||||||
Bakkafrost P/F | 5,280 | 351,573 | ||||||
Storebrand ASA | 65,292 | 586,438 | ||||||
1,730,296 | ||||||||
South Korea — 0.7% | ||||||||
Hite Jinro Co. Ltd. | 17,602 | 505,699 | ||||||
Spain — 2.0% | ||||||||
Acciona SA | 3,350 | 646,011 | ||||||
Banco de Sabadell SA | 570,700 | 511,884 | ||||||
CIE Automotive SA | 9,971 | 254,646 | ||||||
1,412,541 | ||||||||
Sweden — 1.9% | ||||||||
Fortnox AB | 66,961 | 396,280 | ||||||
Hexatronic Group AB | 4,394 | 199,893 | ||||||
Holmen AB, B Shares | 8,236 | 423,674 | ||||||
Lindab International AB | 15,560 | 301,561 | ||||||
1,321,408 | ||||||||
Switzerland — 1.4% | ||||||||
Siegfried Holding AG(1) | 752 | 509,067 | ||||||
SIG Group AG(1) | 23,239 | 507,890 | ||||||
1,016,957 | ||||||||
Taiwan — 1.5% | ||||||||
Airtac International Group | 19,464 | 633,566 | ||||||
ASPEED Technology, Inc. | 5,000 | 397,476 | ||||||
1,031,042 | ||||||||
United Kingdom — 1.4% | ||||||||
RS GROUP PLC | 44,080 | 537,928 | ||||||
Tritax Big Box REIT PLC | 167,914 | 430,754 | ||||||
968,682 | ||||||||
United States — 48.7% | ||||||||
Allegheny Technologies, Inc.(1) | 21,418 | 588,995 | ||||||
Arko Corp. | 39,116 | 353,217 | ||||||
Bancorp, Inc.(1) | 16,525 | 344,216 | ||||||
BJ's Wholesale Club Holdings, Inc.(1) | 13,054 | 755,435 | ||||||
Bloomin' Brands, Inc. | 16,663 | 351,756 |
7
Shares | Value | |||||||
Builders FirstSource, Inc.(1) | 1,118 | $ | 72,771 | |||||
Cargurus, Inc.(1) | 1,708 | 43,247 | ||||||
Clean Harbors, Inc.(1) | 9,011 | 841,627 | ||||||
Codexis, Inc.(1) | 14,822 | 158,299 | ||||||
Commercial Metals Co. | 17,925 | 712,160 | ||||||
Crocs, Inc.(1) | 1,001 | 55,816 | ||||||
DigitalBridge Group, Inc.(1) | 108,747 | 654,657 | ||||||
Driven Brands Holdings, Inc.(1) | 22,217 | 642,960 | ||||||
Duckhorn Portfolio, Inc.(1) | 17,622 | 346,272 | ||||||
Eagle Materials, Inc. | 4,125 | 538,560 | ||||||
Element Solutions, Inc. | 26,158 | 556,904 | ||||||
elf Beauty, Inc.(1) | 15,655 | 416,736 | ||||||
Ensign Group, Inc. | 5,144 | 417,538 | ||||||
European Wax Center, Inc., Class A | 17,694 | 468,891 | ||||||
Evoqua Water Technologies Corp.(1) | 14,534 | 517,265 | ||||||
First Advantage Corp.(1) | 11,461 | 167,331 | ||||||
Glacier Bancorp, Inc. | 14,580 | 705,818 | ||||||
Global Medical REIT, Inc. | 25,430 | 330,590 | ||||||
Graphic Packaging Holding Co. | 20,569 | 457,866 | ||||||
H&E Equipment Services, Inc. | 15,392 | 548,725 | ||||||
Harmony Biosciences Holdings, Inc.(1) | 13,132 | 572,555 | ||||||
Hostess Brands, Inc.(1) | 14,342 | 304,768 | ||||||
John Bean Technologies Corp. | 3,154 | 383,999 | ||||||
Kinsale Capital Group, Inc. | 3,064 | 673,712 | ||||||
Lattice Semiconductor Corp.(1) | 6,405 | 333,188 | ||||||
Lindsay Corp. | 4,419 | 556,794 | ||||||
Manhattan Associates, Inc.(1) | 3,073 | 371,618 | ||||||
MGP Ingredients, Inc. | 7,282 | 705,335 | ||||||
MRC Global, Inc.(1) | 54,595 | 610,918 | ||||||
Mueller Water Products, Inc., Class A | 29,622 | 353,390 | ||||||
Natera, Inc.(1) | 2,757 | 101,154 | ||||||
National Instruments Corp. | 16,656 | 588,290 | ||||||
NOW, Inc.(1) | 100,934 | 1,114,311 | ||||||
Ollie's Bargain Outlet Holdings, Inc.(1) | 7,911 | 371,580 | ||||||
Onto Innovation, Inc.(1) | 4,575 | 367,739 | ||||||
OptimizeRx Corp.(1) | 4,894 | 125,189 | ||||||
Paycor HCM, Inc.(1) | 24,957 | 611,946 | ||||||
Perficient, Inc.(1) | 4,486 | 439,224 | ||||||
Petco Health & Wellness Co., Inc.(1) | 16,863 | 269,133 | ||||||
Plymouth Industrial REIT, Inc. | 13,394 | 272,032 | ||||||
Power Integrations, Inc. | 6,759 | 570,324 | ||||||
PriceSmart, Inc. | 5,664 | 445,360 | ||||||
Progyny, Inc.(1) | 12,453 | 393,639 | ||||||
Pure Storage, Inc., Class A(1) | 13,015 | 308,846 | ||||||
R1 RCM, Inc.(1) | 32,568 | 699,235 | ||||||
RadNet, Inc.(1) | 16,766 | 344,206 | ||||||
Revolve Group, Inc.(1) | 5,199 | 152,747 | ||||||
RLI Corp. | 4,972 | 602,209 | ||||||
Ryman Hospitality Properties, Inc.(1) | 12,269 | 1,095,499 | ||||||
SeaWorld Entertainment, Inc.(1) | 12,390 | 671,290 | ||||||
Selective Insurance Group, Inc. | 8,406 | 666,596 | ||||||
SI-BONE, Inc.(1) | 4,234 | 63,298 |
8
Shares | Value | |||||||
Silk Road Medical, Inc.(1) | 5,087 | $ | 168,990 | |||||
Sovos Brands, Inc.(1) | 40,351 | 569,756 | ||||||
SP Plus Corp.(1) | 7,247 | 231,614 | ||||||
Sprout Social, Inc., Class A(1) | 2,065 | 105,170 | ||||||
SPS Commerce, Inc.(1) | 3,532 | 378,065 | ||||||
Sterling Check Corp.(1) | 8,725 | 162,111 | ||||||
Stride, Inc.(1) | 8,834 | 345,498 | ||||||
Summit Materials, Inc., Class A(1) | 19,370 | 528,995 | ||||||
Switch, Inc., Class A | 11,523 | 388,901 | ||||||
Tenable Holdings, Inc.(1) | 17,945 | 902,633 | ||||||
Tenet Healthcare Corp.(1) | 5,145 | 332,933 | ||||||
Travel + Leisure Co. | 14,076 | 719,424 | ||||||
Triumph Bancorp, Inc.(1) | 2,543 | 184,978 | ||||||
US Foods Holding Corp.(1) | 17,897 | 592,749 | ||||||
Veritex Holdings, Inc. | 12,410 | 427,649 | ||||||
Wintrust Financial Corp. | 12,566 | 1,098,143 | ||||||
Wyndham Hotels & Resorts, Inc. | 10,869 | 870,933 | ||||||
34,196,318 | ||||||||
TOTAL COMMON STOCKS (Cost $65,786,658) | 67,075,727 | |||||||
EXCHANGE-TRADED FUNDS — 0.7% | ||||||||
Schwab International Small-Cap Equity ETF(2) | 6,735 | 238,621 | ||||||
Schwab US Small-Cap ETF | 5,696 | 245,213 | ||||||
TOTAL EXCHANGE-TRADED FUNDS (Cost $459,539) | 483,834 | |||||||
SHORT-TERM INVESTMENTS — 3.0% | ||||||||
Money Market Funds — 0.5% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 339,807 | 339,807 | ||||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) | 4,314 | 4,314 | ||||||
344,121 | ||||||||
Repurchase Agreements — 2.5% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.50% - 4.375%, 2/15/38 - 2/15/45, valued at $165,616), in a joint trading account at 0.74%, dated 5/31/22, due 6/1/22 (Delivery value $162,415) | 162,412 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 4.50%, 5/15/38, valued at $1,660,581), at 0.75%, dated 5/31/22, due 6/1/22 (Delivery value $1,628,034) | 1,628,000 | |||||||
1,790,412 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $2,134,533) | 2,134,533 | |||||||
TOTAL INVESTMENT SECURITIES — 99.3% (Cost $68,380,730) | 69,694,094 | |||||||
OTHER ASSETS AND LIABILITIES — 0.7% | 460,370 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 70,154,464 |
9
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Industrials | 14.4% | ||||
Consumer Discretionary | 13.1% | ||||
Financials | 12.1% | ||||
Information Technology | 11.9% | ||||
Materials | 10.4% | ||||
Real Estate | 9.6% | ||||
Consumer Staples | 8.7% | ||||
Health Care | 6.4% | ||||
Energy | 5.3% | ||||
Utilities | 3.3% | ||||
Communication Services | 0.4% | ||||
Exchange-Traded Funds | 0.7% | ||||
Short-Term Investments | 3.0% | ||||
Other Assets and Liabilities | 0.7% |
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
ADR | - | American Depositary Receipt |
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $2,365,191. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $2,517,997, which includes securities collateral of $2,513,683.
See Notes to Financial Statements.
10
Statement of Assets and Liabilities |
MAY 31, 2022 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $68,376,416) — including $2,365,191 of securities on loan | $ | 69,689,780 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $4,314) | 4,314 | ||||
Total investment securities, at value (cost of $68,380,730) | 69,694,094 | ||||
Foreign currency holdings, at value (cost of $21) | 20 | ||||
Receivable for investments sold | 68,580 | ||||
Receivable for capital shares sold | 779,998 | ||||
Dividends and interest receivable | 72,711 | ||||
Securities lending receivable | 2,792 | ||||
Other assets | 1,517 | ||||
70,619,712 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 4,314 | ||||
Payable for investments purchased | 353,356 | ||||
Payable for capital shares redeemed | 50,316 | ||||
Accrued management fees | 56,439 | ||||
Distribution and service fees payable | 823 | ||||
465,248 | |||||
Net Assets | $ | 70,154,464 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 74,943,518 | |||
Distributable earnings | (4,789,054) | ||||
$ | 70,154,464 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $38,042,742 | 2,281,235 | $16.68 | ||||||||
I Class, $0.01 Par Value | $16,429,347 | 971,664 | $16.91 | ||||||||
A Class, $0.01 Par Value | $278,429 | 16,991 | $16.39* | ||||||||
C Class, $0.01 Par Value | $110,468 | 7,158 | $15.43 | ||||||||
R Class, $0.01 Par Value | $1,614,587 | 100,497 | $16.07 | ||||||||
R6 Class, $0.01 Par Value | $13,678,891 | 800,795 | $17.08 |
*Maximum offering price $17.39 (net asset value divided by 0.9425).
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $39,588) | $ | 471,283 | |||
Securities lending, net | 9,507 | ||||
Interest | 1,366 | ||||
482,156 | |||||
Expenses: | |||||
Management fees | 354,535 | ||||
Distribution and service fees: | |||||
A Class | 345 | ||||
C Class | 685 | ||||
R Class | 4,461 | ||||
Directors' fees and expenses | 773 | ||||
Other expenses | 698 | ||||
361,497 | |||||
Net investment income (loss) | 120,659 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | (5,295,664) | ||||
Foreign currency translation transactions | (5,280) | ||||
(5,300,944) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | (12,365,054) | ||||
Translation of assets and liabilities in foreign currencies | (1,160) | ||||
(12,366,214) | |||||
Net realized and unrealized gain (loss) | (17,667,158) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (17,546,499) |
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2021 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2022 | November 30, 2021 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 120,659 | $ | (164,228) | ||||
Net realized gain (loss) | (5,300,944) | 12,819,057 | ||||||
Change in net unrealized appreciation (depreciation) | (12,366,214) | (709,277) | ||||||
Net increase (decrease) in net assets resulting from operations | (17,546,499) | 11,945,552 | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (6,164,341) | (1,491,067) | ||||||
I Class | (1,703,359) | (85,407) | ||||||
A Class | (45,507) | (4,280) | ||||||
C Class | (26,824) | (3,236) | ||||||
R Class | (284,541) | (60,372) | ||||||
R6 Class | (2,350,107) | (1,339,898) | ||||||
Decrease in net assets from distributions | (10,574,679) | (2,984,260) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 27,060,950 | 14,414,232 | ||||||
Net increase (decrease) in net assets | (1,060,228) | 23,375,524 | ||||||
Net Assets | ||||||||
Beginning of period | 71,214,692 | 47,839,168 | ||||||
End of period | $ | 70,154,464 | $ | 71,214,692 |
See Notes to Financial Statements.
13
Notes to Financial Statements |
MAY 31, 2022 (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 (NAV) 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 NAV 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 NAV 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.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 31, 2022.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Exchange-Traded Funds | $ | 4,314 | — | — | — | $ | 4,314 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 4,314 |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
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.
16
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 | ||||||||||||
1.10% | 0.90% | 1.10% | 1.10% | 1.10% | 0.75% |
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, 2022 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 $112,131 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, 2022 were $61,754,556 and $46,402,178, respectively.
17
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2022 | Year ended November 30, 2021 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||
Sold | 688,623 | $ | 13,575,566 | 809,165 | $ | 19,787,083 | ||||||||
Issued in reinvestment of distributions | 290,679 | 6,086,815 | 66,964 | 1,466,380 | ||||||||||
Redeemed | (375,455) | (7,146,305) | (220,131) | (5,285,238) | ||||||||||
603,847 | 12,516,076 | 655,998 | 15,968,225 | |||||||||||
I Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 574,753 | 11,004,180 | 505,427 | 12,351,326 | ||||||||||
Issued in reinvestment of distributions | 80,309 | 1,703,359 | 3,813 | 85,407 | ||||||||||
Redeemed | (121,437) | (2,313,837) | (98,729) | (2,406,901) | ||||||||||
533,625 | 10,393,702 | 410,511 | 10,029,832 | |||||||||||
A Class/Shares Authorized | 20,000,000 | 30,000,000 | ||||||||||||
Sold | 2,880 | 47,897 | 10,731 | 257,844 | ||||||||||
Issued in reinvestment of distributions | 2,209 | 45,507 | 198 | 4,280 | ||||||||||
Redeemed | (993) | (21,013) | (1,036) | (24,970) | ||||||||||
4,096 | 72,391 | 9,893 | 237,154 | |||||||||||
C Class/Shares Authorized | 20,000,000 | 30,000,000 | ||||||||||||
Sold | 1,050 | 17,985 | 5,182 | 120,261 | ||||||||||
Issued in reinvestment of distributions | 1,378 | 26,824 | 156 | 3,236 | ||||||||||
Redeemed | (2,862) | (50,349) | — | — | ||||||||||
(434) | (5,540) | 5,338 | 123,497 | |||||||||||
R Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 24,278 | 451,997 | 51,432 | 1,211,805 | ||||||||||
Issued in reinvestment of distributions | 14,060 | 284,298 | 2,528 | 53,905 | ||||||||||
Redeemed | (17,973) | (336,397) | (14,582) | (342,974) | ||||||||||
20,365 | 399,898 | 39,378 | 922,736 | |||||||||||
R6 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 147,362 | 2,863,339 | 93,864 | 2,263,711 | ||||||||||
Issued in reinvestment of distributions | 109,716 | 2,350,107 | 60,208 | 1,339,898 | ||||||||||
Redeemed | (78,827) | (1,529,023) | (683,052) | (16,470,821) | ||||||||||
178,251 | 3,684,423 | (528,980) | (12,867,212) | |||||||||||
Net increase (decrease) | 1,339,750 | $ | 27,060,950 | 592,138 | $ | 14,414,232 |
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 | |||||||||||
Australia | — | $ | 2,376,366 | — | |||||||
Belgium | — | 848,396 | — | ||||||||
Brazil | — | 1,983,641 | — | ||||||||
Canada | $ | 590,419 | 8,284,779 | — | |||||||
Finland | — | 428,326 | — | ||||||||
France | — | 1,330,575 | — | ||||||||
Germany | — | 497,824 | — | ||||||||
Hong Kong | — | 559,819 | — | ||||||||
Italy | — | 724,146 | — | ||||||||
Japan | — | 3,766,953 | — | ||||||||
Mexico | — | 313,132 | — | ||||||||
Netherlands | 446,757 | 1,219,466 | — | ||||||||
New Zealand | — | 317,498 | — | ||||||||
Norway | — | 1,730,296 | — | ||||||||
South Korea | — | 505,699 | — | ||||||||
Spain | — | 1,412,541 | — | ||||||||
Sweden | — | 1,321,408 | — | ||||||||
Switzerland | — | 1,016,957 | — | ||||||||
Taiwan | — | 1,031,042 | — | ||||||||
United Kingdom | — | 968,682 | — | ||||||||
Other Countries | 35,401,005 | — | — | ||||||||
Exchange-Traded Funds | 483,834 | — | — | ||||||||
Short-Term Investments | 344,121 | 1,790,412 | — | ||||||||
$ | 37,266,136 | $ | 32,427,958 | — |
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, war, 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.
19
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 | $ | 69,172,474 | |||
Gross tax appreciation of investments | $ | 5,527,953 | |||
Gross tax depreciation of investments | (5,006,333) | ||||
Net tax appreciation (depreciation) of investments | $ | 521,620 |
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 | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $24.94 | 0.02 | (4.71) | (4.69) | (0.04) | (3.53) | (3.57) | $16.68 | (21.71)% | 1.10%(4) | 0.24%(4) | 65% | $38,043 | ||||||||||||||||||||||||||||
2021 | $21.11 | (0.10) | 5.29 | 5.19 | — | (1.36) | (1.36) | $24.94 | 25.57% | 1.11% | (0.40)% | 136% | $41,838 | ||||||||||||||||||||||||||||
2020 | $15.81 | (0.11) | 6.19 | 6.08 | — | (0.78) | (0.78) | $21.11 | 40.28% | 1.39% | (0.63)% | 204% | $21,562 | ||||||||||||||||||||||||||||
2019 | $13.66 | (0.06) | 2.44 | 2.38 | — | (0.23) | (0.23) | $15.81 | 17.93% | 1.51% | (0.39)% | 161% | $15,005 | ||||||||||||||||||||||||||||
2018 | $14.80 | (0.13) | (0.24) | (0.37) | — | (0.77) | (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 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $25.27 | 0.05 | (4.79) | (4.74) | (0.09) | (3.53) | (3.62) | $16.91 | (21.66)% | 0.90%(4) | 0.44%(4) | 65% | $16,429 | ||||||||||||||||||||||||||||
2021 | $21.33 | (0.04) | 5.34 | 5.30 | — | (1.36) | (1.36) | $25.27 | 25.84% | 0.91% | (0.20)% | 136% | $11,067 | ||||||||||||||||||||||||||||
2020 | $15.94 | (0.08) | 6.25 | 6.17 | — | (0.78) | (0.78) | $21.33 | 40.62% | 1.19% | (0.43)% | 204% | $587 | ||||||||||||||||||||||||||||
2019 | $13.74 | (0.02) | 2.45 | 2.43 | — | (0.23) | (0.23) | $15.94 | 18.12% | 1.31% | (0.19)% | 161% | $557 | ||||||||||||||||||||||||||||
2018 | $14.85 | (0.10) | (0.24) | (0.34) | — | (0.77) | (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 |
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 | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $24.55 | —(5) | (4.63) | (4.63) | — | (3.53) | (3.53) | $16.39 | (21.80)% | 1.35%(4) | (0.01)%(4) | 65% | $278 | ||||||||||||||||||||||||||||
2021 | $20.85 | (0.16) | 5.22 | 5.06 | — | (1.36) | (1.36) | $24.55 | 25.25% | 1.36% | (0.65)% | 136% | $317 | ||||||||||||||||||||||||||||
2020 | $15.66 | (0.15) | 6.12 | 5.97 | — | (0.78) | (0.78) | $20.85 | 39.95% | 1.64% | (0.88)% | 204% | $63 | ||||||||||||||||||||||||||||
2019 | $13.57 | (0.08) | 2.40 | 2.32 | — | (0.23) | (0.23) | $15.66 | 17.60% | 1.76% | (0.64)% | 161% | $671 | ||||||||||||||||||||||||||||
2018 | $14.74 | (0.17) | (0.23) | (0.40) | — | (0.77) | (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 | ||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $23.41 | (0.07) | (4.38) | (4.45) | — | (3.53) | (3.53) | $15.43 | (22.14)% | 2.10%(4) | (0.76)%(4) | 65% | $110 | ||||||||||||||||||||||||||||
2021 | $20.08 | (0.33) | 5.02 | 4.69 | — | (1.36) | (1.36) | $23.41 | 24.32% | 2.11% | (1.40)% | 136% | $178 | ||||||||||||||||||||||||||||
2020 | $15.22 | (0.26) | 5.90 | 5.64 | — | (0.78) | (0.78) | $20.08 | 38.88% | 2.39% | (1.63)% | 204% | $45 | ||||||||||||||||||||||||||||
2019 | $13.29 | (0.18) | 2.34 | 2.16 | — | (0.23) | (0.23) | $15.22 | 16.75% | 2.51% | (1.39)% | 161% | $595 | ||||||||||||||||||||||||||||
2018 | $14.56 | (0.28) | (0.22) | (0.50) | — | (0.77) | (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 | ||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $24.17 | (0.02) | (4.55) | (4.57) | — | (3.53) | (3.53) | $16.07 | (21.91)% | 1.60%(4) | (0.26)%(4) | 65% | $1,615 | ||||||||||||||||||||||||||||
2021 | $20.59 | (0.21) | 5.15 | 4.94 | — | (1.36) | (1.36) | $24.17 | 24.97% | 1.61% | (0.90)% | 136% | $1,937 | ||||||||||||||||||||||||||||
2020 | $15.52 | (0.18) | 6.03 | 5.85 | — | (0.78) | (0.78) | $20.59 | 39.52% | 1.89% | (1.13)% | 204% | $839 | ||||||||||||||||||||||||||||
2019 | $13.48 | (0.12) | 2.39 | 2.27 | — | (0.23) | (0.23) | $15.52 | 17.34% | 2.01% | (0.89)% | 161% | $523 | ||||||||||||||||||||||||||||
2018 | $14.68 | (0.21) | (0.22) | (0.43) | — | (0.77) | (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 |
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) | |||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $25.51 | 0.06 | (4.83) | (4.77) | (0.13) | (3.53) | (3.66) | $17.08 | (21.62)% | 0.75%(4) | 0.59%(4) | 65% | $13,679 | ||||||||||||||||||||||||||||
2021 | $21.49 | (0.01) | 5.39 | 5.38 | — | (1.36) | (1.36) | $25.51 | 26.03% | 0.76% | (0.05)% | 136% | $15,878 | ||||||||||||||||||||||||||||
2020 | $16.03 | (0.03) | 6.27 | 6.24 | — | (0.78) | (0.78) | $21.49 | 40.75% | 1.04% | (0.28)% | 204% | $24,743 | ||||||||||||||||||||||||||||
2019 | $13.79 | —(5) | 2.47 | 2.47 | — | (0.23) | (0.23) | $16.03 | 18.34% | 1.16% | (0.04)% | 161% | $207 | ||||||||||||||||||||||||||||
2018 | $14.89 | (0.08) | (0.25) | (0.33) | — | (0.77) | (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 |
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, 2022 (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 the Program Administrator, including members of 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 certain Fund’s investments is supported by a third-party liquidity assessment vendor.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period January 1, 2021 through December 31, 2021. 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. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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Notes |
26
Notes |
27
Notes |
28
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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. | ||||||||
©2022 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92638 2207 |
![acihorizblkd50.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/acihorizblkd50.jpg)
Semiannual Report | |||||
May 31, 2022 | |||||
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) | |||||
G Class (ACAEX) |
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 |
![image26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image26.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2022. 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.
Soaring Prices, Sharp Volatility Sank Stock Returns
Global investors faced an unusual set of challenges in the six-month period. From soaring inflation and rising interest rates to mounting geopolitical unrest and slowing growth, global stocks struggled amid intense volatility.
Inflation was already at multiyear highs when the reporting period began. This was largely due to massive fiscal and monetary support, escalating energy prices, supply chain breakdowns and labor market shortages. Russia’s invasion of Ukraine in February sent commodity prices even higher, exacerbating existing inflationary pressures and further damaging global supply chains.
By period-end, inflation lingered at a 40-year high in the U.S. and the U.K. and a record high in the eurozone. Most emerging markets also grappled with rising inflation. At the same time, global economic growth slowed dramatically, further complicated by COVID-19-related lockdowns that shut down key manufacturing hubs in China.
The Federal Reserve responded to surging inflation in March, launching a rate-hike campaign and ending its bond-buying program. The Bank of England executed a series of rate hikes, while the European Central Bank said it would end its bond buying in the third quarter.
The combination of accelerating inflation, tighter monetary policy, geopolitical strife and slowing economic growth fueled widespread and sharp market volatility. Global stock returns broadly declined for the six-month period. Developed markets stocks generally fared better than emerging markets stocks, while U.S. stocks underperformed other developed markets.
Staying Disciplined in Uncertain Times
We expect market volatility to linger as investors navigate this complex environment of high inflation, rising interest rates and economic uncertainty. In addition, Russia’s invasion of Ukraine complicates a tense geopolitical backdrop. We will continue to monitor this evolving situation and its implications for our clients and investment exposure.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
![image35.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image35.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2022 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 98.6% | ||||
Short-Term Investments | 1.6% | ||||
Other Assets and Liabilities | (0.2)% | ||||
Top Five Countries | % of net assets | ||||
France | 18.4% | ||||
United Kingdom | 15.3% | ||||
Japan | 9.7% | ||||
Switzerland | 7.6% | ||||
Netherlands | 7.2% |
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, 2021 to May 31, 2022 (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 12/1/21 | Ending Account Value 5/31/22 | Expenses Paid During Period(1) 12/1/21 - 5/31/22 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $807.10 | $6.62 | 1.47% | ||||||||||
I Class | $1,000 | $807.90 | $5.72 | 1.27% | ||||||||||
Y Class | $1,000 | $808.50 | $5.05 | 1.12% | ||||||||||
A Class | $1,000 | $805.90 | $7.74 | 1.72% | ||||||||||
C Class | $1,000 | $803.50 | $11.11 | 2.47% | ||||||||||
R Class | $1,000 | $805.00 | $8.87 | 1.97% | ||||||||||
R5 Class | $1,000 | $808.00 | $5.72 | 1.27% | ||||||||||
R6 Class | $1,000 | $808.30 | $5.05 | 1.12% | ||||||||||
G Class | $1,000 | $904.10 | $0.21(2) | 0.13% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,017.60 | $7.39 | 1.47% | ||||||||||
I Class | $1,000 | $1,018.60 | $6.39 | 1.27% | ||||||||||
Y Class | $1,000 | $1,019.35 | $5.64 | 1.12% | ||||||||||
A Class | $1,000 | $1,016.36 | $8.65 | 1.72% | ||||||||||
C Class | $1,000 | $1,012.62 | $12.39 | 2.47% | ||||||||||
R Class | $1,000 | $1,015.11 | $9.90 | 1.97% | ||||||||||
R5 Class | $1,000 | $1,018.60 | $6.39 | 1.27% | ||||||||||
R6 Class | $1,000 | $1,019.35 | $5.64 | 1.12% | ||||||||||
G Class | $1,000 | $1,024.28 | $0.66 | 0.13% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
(2)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 61, the number of days in the period from April 1, 2022 (commencement of sale) through May 31, 2022, divided by 365, to reflect the period. Had the class been available for the full period, the expenses paid during the period would have been higher.
5
Schedule of Investments |
MAY 31, 2022 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 98.6% | ||||||||
Australia — 4.3% | ||||||||
Atlassian Corp. PLC, Class A(1) | 140,820 | $ | 24,970,202 | |||||
CSL Ltd. | 339,910 | 66,127,809 | ||||||
NEXTDC Ltd.(1) | 1,800,398 | 14,171,858 | ||||||
Xero Ltd.(1) | 157,580 | 10,072,935 | ||||||
115,342,804 | ||||||||
Austria — 0.6% | ||||||||
Erste Group Bank AG | 505,980 | 15,797,682 | ||||||
Belgium — 1.2% | ||||||||
KBC Group NV | 517,210 | 32,330,172 | ||||||
Canada — 5.8% | ||||||||
Canadian Pacific Railway Ltd. | 589,730 | 42,078,612 | ||||||
Element Fleet Management Corp. | 1,069,650 | 11,915,538 | ||||||
First Quantum Minerals Ltd. | 759,720 | 21,995,451 | ||||||
GFL Environmental, Inc. | 948,029 | 28,981,247 | ||||||
Toronto-Dominion Bank | 659,880 | 50,428,115 | ||||||
155,398,963 | ||||||||
China — 0.9% | ||||||||
Li Ning Co. Ltd. | 3,235,500 | 25,243,931 | ||||||
Denmark — 3.0% | ||||||||
Novo Nordisk A/S, B Shares | 712,140 | 79,083,493 | ||||||
Finland — 0.7% | ||||||||
Neste Oyj | 432,530 | 19,867,372 | ||||||
France — 18.4% | ||||||||
Air Liquide SA(2) | 299,230 | 52,415,442 | ||||||
Airbus SE | 224,250 | 26,281,159 | ||||||
Arkema SA | 114,250 | 13,832,131 | ||||||
Bureau Veritas SA | 633,380 | 18,302,160 | ||||||
Capgemini SE | 189,480 | 36,818,375 | ||||||
Dassault Systemes SE | 663,920 | 27,993,285 | ||||||
Edenred | 515,957 | 25,486,115 | ||||||
EssilorLuxottica SA | 144,390 | 23,321,032 | ||||||
L'Oreal SA | 86,070 | 30,400,911 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 115,270 | 74,421,312 | ||||||
Pernod Ricard SA | 178,430 | 35,041,405 | ||||||
Safran SA | 103,410 | 10,714,421 | ||||||
Sartorius Stedim Biotech | 32,860 | 11,350,822 | ||||||
Schneider Electric SE | 356,360 | 49,495,468 | ||||||
Teleperformance | 83,920 | 27,863,255 | ||||||
Thales SA | 245,830 | 30,019,390 | ||||||
493,756,683 | ||||||||
Germany — 6.2% | ||||||||
Brenntag SE | 201,570 | 15,596,795 | ||||||
Commerzbank AG(1) | 3,594,140 | 31,344,196 | ||||||
Infineon Technologies AG | 720,531 | 22,454,031 | ||||||
Mercedes-Benz Group AG | 444,230 | 31,655,564 | ||||||
Puma SE | 295,060 | 22,018,485 |
6
Shares | Value | |||||||
Symrise AG | 391,060 | $ | 43,212,764 | |||||
166,281,835 | ||||||||
Hong Kong — 1.6% | ||||||||
AIA Group Ltd. | 4,252,800 | 44,059,788 | ||||||
India — 0.6% | ||||||||
HDFC Bank Ltd. | 933,330 | 16,567,549 | ||||||
Indonesia — 0.7% | ||||||||
Bank Central Asia Tbk PT | 32,590,800 | 17,243,827 | ||||||
Ireland — 3.7% | ||||||||
CRH PLC | 664,030 | 27,406,434 | ||||||
ICON PLC(1) | 162,930 | 36,462,105 | ||||||
Kerry Group PLC, A Shares | 228,770 | 23,684,691 | ||||||
Ryanair Holdings PLC, ADR(1) | 138,830 | 12,105,976 | ||||||
99,659,206 | ||||||||
Italy — 3.5% | ||||||||
Ferrari NV | 198,630 | 38,757,799 | ||||||
Prysmian SpA | 720,290 | 23,264,592 | ||||||
Tenaris SA | 1,928,220 | 32,143,590 | ||||||
94,165,981 | ||||||||
Japan — 9.7% | ||||||||
BayCurrent Consulting, Inc. | 67,200 | 21,113,053 | ||||||
Food & Life Cos. Ltd. | 344,900 | 7,492,257 | ||||||
Hoya Corp. | 267,900 | 28,514,366 | ||||||
JSR Corp. | 582,600 | 18,378,545 | ||||||
Keyence Corp. | 121,300 | 48,225,996 | ||||||
Kobe Bussan Co. Ltd. | 1,018,000 | 24,683,001 | ||||||
MonotaRO Co. Ltd. | 1,928,600 | 28,157,693 | ||||||
Nintendo Co. Ltd. | 75,000 | 33,486,629 | ||||||
Obic Co. Ltd. | 163,600 | 24,103,484 | ||||||
Recruit Holdings Co. Ltd. | 705,800 | 25,545,856 | ||||||
259,700,880 | ||||||||
Netherlands — 7.2% | ||||||||
Adyen NV(1) | 22,832 | 35,359,124 | ||||||
Akzo Nobel NV | 371,590 | 32,343,951 | ||||||
ASML Holding NV | 109,800 | 63,184,961 | ||||||
Koninklijke DSM NV | 136,919 | 23,057,315 | ||||||
Universal Music Group NV | 1,777,240 | 39,732,286 | ||||||
193,677,637 | ||||||||
Spain — 4.4% | ||||||||
Amadeus IT Group SA(1) | 275,840 | 17,163,774 | ||||||
Cellnex Telecom SA | 992,886 | 44,808,108 | ||||||
Iberdrola SA | 4,748,362 | 56,261,001 | ||||||
118,232,883 | ||||||||
Sweden — 2.0% | ||||||||
Epiroc AB, A Shares | 1,340,700 | 25,997,430 | ||||||
Hexagon AB, B Shares(2) | 2,249,760 | 27,449,945 | ||||||
53,447,375 | ||||||||
Switzerland — 7.6% | ||||||||
Alcon, Inc. | 556,051 | 41,726,390 | ||||||
Lonza Group AG | 87,330 | 52,651,748 | ||||||
On Holding AG, Class A(1)(2) | 520,330 | 10,744,814 | ||||||
Partners Group Holding AG | 18,950 | 20,389,799 |
7
Shares | Value | |||||||
Sika AG | 133,609 | $ | 37,088,344 | |||||
Zurich Insurance Group AG | 91,170 | 41,753,525 | ||||||
204,354,620 | ||||||||
Taiwan — 0.6% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 897,000 | 16,963,100 | ||||||
Thailand — 0.6% | ||||||||
Kasikornbank PCL | 3,960,300 | 16,992,319 | ||||||
United Kingdom — 15.3% | ||||||||
Ashtead Group PLC | 497,030 | 26,042,901 | ||||||
AstraZeneca PLC | 682,320 | 90,177,928 | ||||||
BT Group PLC | 7,810,070 | 18,408,277 | ||||||
Compass Group PLC | 1,623,820 | 36,400,076 | ||||||
HSBC Holdings PLC | 7,798,400 | 52,049,534 | ||||||
London Stock Exchange Group PLC | 400,346 | 37,357,473 | ||||||
Natwest Group PLC | 13,845,320 | 39,871,234 | ||||||
Reckitt Benckiser Group PLC | 653,591 | 50,451,648 | ||||||
Segro PLC | 2,143,670 | 29,940,670 | ||||||
Whitbread PLC | 864,780 | 29,673,221 | ||||||
410,372,962 | ||||||||
TOTAL COMMON STOCKS (Cost $2,356,986,260) | 2,648,541,062 | |||||||
SHORT-TERM INVESTMENTS — 1.6% | ||||||||
Money Market Funds — 0.6% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 5,162,169 | 5,162,169 | ||||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) | 11,245,571 | 11,245,571 | ||||||
16,407,740 | ||||||||
Repurchase Agreements — 1.0% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.50% - 4.375%, 2/15/38 - 2/15/45, valued at $2,515,954), in a joint trading account at 0.74%, dated 5/31/22, due 6/1/22 (Delivery value $2,467,334) | 2,467,283 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 4.50%, 5/15/38, valued at $25,227,700), at 0.75%, dated 5/31/22, due 6/1/22 (Delivery value $24,733,515) | 24,733,000 | |||||||
27,200,283 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $43,608,023) | 43,608,023 | |||||||
TOTAL INVESTMENT SECURITIES — 100.2% (Cost $2,400,594,283) | 2,692,149,085 | |||||||
OTHER ASSETS AND LIABILITIES — (0.2)% | (4,473,324) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 2,687,675,761 |
8
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Financials | 15.9% | ||||
Industrials | 15.4% | ||||
Health Care | 15.3% | ||||
Information Technology | 14.5% | ||||
Consumer Discretionary | 11.1% | ||||
Materials | 10.1% | ||||
Consumer Staples | 6.1% | ||||
Communication Services | 5.1% | ||||
Utilities | 2.1% | ||||
Energy | 1.9% | ||||
Real Estate | 1.1% | ||||
Short-Term Investments | 1.6% | ||||
Other Assets and Liabilities | (0.2)% |
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
ADR | - | American Depositary Receipt |
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $54,199,790. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $57,794,995, which includes securities collateral of $46,549,424.
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2022 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $2,389,348,712) — including $54,199,790 of securities on loan | $ | 2,680,903,514 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $11,245,571) | 11,245,571 | ||||
Total investment securities, at value (cost of $2,400,594,283) | 2,692,149,085 | ||||
Cash | 38,439 | ||||
Foreign currency holdings, at value (cost of $186) | 187 | ||||
Receivable for investments sold | 5,268,565 | ||||
Receivable for capital shares sold | 260,385 | ||||
Dividends and interest receivable | 10,760,401 | ||||
Securities lending receivable | 116,378 | ||||
Other assets | 72,442 | ||||
2,708,665,882 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 11,245,571 | ||||
Payable for investments purchased | 5,544,067 | ||||
Payable for capital shares redeemed | 370,168 | ||||
Accrued management fees | 1,318,761 | ||||
Distribution and service fees payable | 17,684 | ||||
Accrued foreign taxes | 528,718 | ||||
Accrued foreign withholding tax reclaim expenses | 1,133,152 | ||||
Accrued IRS compliance fees | 832,000 | ||||
20,990,121 | |||||
Net Assets | $ | 2,687,675,761 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 2,464,264,354 | |||
Distributable earnings | 223,411,407 | ||||
$ | 2,687,675,761 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $929,146,592 | 81,707,905 | $11.37 | ||||||||
I Class, $0.01 Par Value | $277,838,041 | 24,676,018 | $11.26 | ||||||||
Y Class, $0.01 Par Value | $41,682,134 | 3,701,540 | $11.26 | ||||||||
A Class, $0.01 Par Value | $68,986,713 | 6,023,462 | $11.45* | ||||||||
C Class, $0.01 Par Value | $938,013 | 87,125 | $10.77 | ||||||||
R Class, $0.01 Par Value | $6,319,320 | 547,112 | $11.55 | ||||||||
R5 Class, $0.01 Par Value | $7,132 | 633 | $11.27 | ||||||||
R6 Class, $0.01 Par Value | $27,924,397 | 2,481,797 | $11.25 | ||||||||
G Class, $0.01 Par Value | $1,334,833,419 | 118,358,750 | $11.28 |
*Maximum offering price $12.15 (net asset value divided by 0.9425).
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $3,041,823) | $ | 27,609,094 | |||
Foreign withholding tax recoveries (net of IRS compliance fees of $832,000) | 6,915,466 | ||||
Interest (net of foreign taxes withheld of $13) | 1,672,579 | ||||
Securities lending, net | 121,700 | ||||
36,318,839 | |||||
Expenses: | |||||
Management fees | 9,802,552 | ||||
Distribution and service fees: | |||||
A Class | 97,428 | ||||
C Class | 5,923 | ||||
R Class | 17,179 | ||||
Directors' fees and expenses | 18,718 | ||||
Foreign withholding tax reclaim expenses | 2,152,698 | ||||
Other expenses | 8,160 | ||||
12,102,658 | |||||
Fees waived - G Class | (1,175,072) | ||||
10,927,586 | |||||
Net investment income (loss) | 25,391,253 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions (net of foreign tax expenses paid (refunded) of $18,599) | (53,850,463) | ||||
Foreign currency translation transactions | (1,328,631) | ||||
(55,179,094) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments (includes (increase) decrease in accrued foreign taxes of $163,527) | (333,415,657) | ||||
Translation of assets and liabilities in foreign currencies | (119,559) | ||||
(333,535,216) | |||||
Net realized and unrealized gain (loss) | (388,714,310) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (363,323,057) |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2021 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2022 | November 30, 2021 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 25,391,253 | $ | 9,514,135 | ||||
Net realized gain (loss) | (55,179,094) | 189,752,425 | ||||||
Change in net unrealized appreciation (depreciation) | (333,535,216) | (38,014,755) | ||||||
Net increase (decrease) in net assets resulting from operations | (363,323,057) | 161,251,805 | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (154,972,486) | (54,887,728) | ||||||
I Class | (37,889,802) | (3,793,173) | ||||||
Y Class | (6,547,664) | (1,442,300) | ||||||
A Class | (11,140,263) | (3,664,774) | ||||||
C Class | (180,325) | (85,443) | ||||||
R Class | (942,087) | (292,738) | ||||||
R5 Class | (1,184) | (508) | ||||||
R6 Class | (4,460,249) | (2,636,516) | ||||||
G Class | (62) | — | ||||||
Decrease in net assets from distributions | (216,134,122) | (66,803,180) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 1,662,164,065 | 10,990,793 | ||||||
Net increase (decrease) in net assets | 1,082,706,886 | 105,439,418 | ||||||
Net Assets | ||||||||
Beginning of period | 1,604,968,875 | 1,499,529,457 | ||||||
End of period | $ | 2,687,675,761 | $ | 1,604,968,875 |
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2022 (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, 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, 2022.
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 (NAV) 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 NAV 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 NAV 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.
13
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 less foreign taxes withheld, if any, 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 withholding tax recoveries less IRS compliance fees, if any, represent the receipt of certain European Union (EU) withholding taxes previously withheld. The fund will record any EU reclaims only when certainty exists as to the likelihood of receipt. The fund may estimate IRS compliance fees when EU reclaims recovered exceed any foreign taxes withheld during the current fiscal period. The IRS compliance fees reduce the foreign withholding tax recoveries.
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. 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.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 31, 2022.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 11,245,571 | — | — | — | $ | 11,245,571 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 11,245,571 |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
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, 35% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
15
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). Prior to the fund's acquisition of NT International Growth Fund, the strategy assets of the fund also included the assets of NT International Growth Fund. The investment advisor agreed to waive the G Class's management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors.
The management fee schedule range and the effective annual management fee for each class for the period ended May 31, 2022 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |||||||
Investor Class | 1.050% to 1.500% | 1.22% | ||||||
I Class | 0.850% to 1.300% | 1.02% | ||||||
Y Class | 0.700% to 1.150% | 0.87% | ||||||
A Class | 1.050% to 1.500% | 1.22% | ||||||
C Class | 1.050% to 1.500% | 1.22% | ||||||
R Class | 1.050% to 1.500% | 1.22% | ||||||
R5 Class | 0.850% to 1.300% | 1.02% | ||||||
R6 Class | 0.700% to 1.150% | 0.87% | ||||||
G Class | 0.700% to 1.150% | 0.00%(1) |
(1)Effective annual management fee before waiver was 0.87%.
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, 2022 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.
Foreign Withholding Tax Reclaim Expenses — The fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The fund may incur expenses in association with recovery of such taxes. The impact of foreign withholding tax reclaim expenses to the annualized ratio of operating expenses to average net assets was 0.25% for the Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class, and 0.13% for the G Class, for the period ended May 31, 2022.
16
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 $3,931,413 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, 2022 were $592,043,089 and $471,671,821, respectively.
17
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2022(1) | Year ended November 30, 2021 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 1,250,000,000 | 1,250,000,000 | ||||||||||||
Sold | 2,716,595 | $ | 41,311,739 | 3,665,315 | $ | 58,740,896 | ||||||||
Issued in reinvestment of distributions | 10,709,215 | 148,931,979 | 3,482,032 | 52,071,101 | ||||||||||
Redeemed | (3,387,198) | (44,665,755) | (16,617,751) | (272,378,978) | ||||||||||
10,038,612 | 145,577,963 | (9,470,404) | (161,566,981) | |||||||||||
I Class/Shares Authorized | 100,000,000 | 90,000,000 | ||||||||||||
Sold | 6,308,300 | 75,249,081 | 12,662,682 | 207,549,688 | ||||||||||
Issued in reinvestment of distributions | 2,767,046 | 37,841,100 | 255,045 | 3,782,314 | ||||||||||
Redeemed | (847,661) | (10,810,509) | (1,870,098) | (30,347,473) | ||||||||||
8,227,685 | 102,279,672 | 11,047,629 | 180,984,529 | |||||||||||
Y Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||
Sold | 652,207 | 8,616,531 | 1,176,218 | 19,132,223 | ||||||||||
Issued in reinvestment of distributions | 475,952 | 6,532,062 | 96,900 | 1,437,024 | ||||||||||
Redeemed | (371,098) | (4,705,042) | (251,076) | (4,054,144) | ||||||||||
757,061 | 10,443,551 | 1,022,042 | 16,515,103 | |||||||||||
A Class/Shares Authorized | 80,000,000 | 80,000,000 | ||||||||||||
Sold | 307,714 | 4,056,675 | 729,932 | 11,666,426 | ||||||||||
Issued in reinvestment of distributions | 786,226 | 11,019,766 | 238,591 | 3,593,178 | ||||||||||
Redeemed | (464,991) | (5,996,791) | (833,309) | (13,500,921) | ||||||||||
628,949 | 9,079,650 | 135,214 | 1,758,683 | |||||||||||
C Class/Shares Authorized | 20,000,000 | 30,000,000 | ||||||||||||
Sold | 835 | 10,045 | 4,351 | 66,796 | ||||||||||
Issued in reinvestment of distributions | 13,035 | 172,810 | 5,736 | 82,198 | ||||||||||
Redeemed | (21,636) | (263,365) | (41,265) | (633,724) | ||||||||||
(7,766) | (80,510) | (31,178) | (484,730) | |||||||||||
R Class/Shares Authorized | 25,000,000 | 30,000,000 | ||||||||||||
Sold | 55,906 | 733,055 | 89,795 | 1,458,492 | ||||||||||
Issued in reinvestment of distributions | 66,701 | 942,087 | 19,165 | 290,918 | ||||||||||
Redeemed | (38,350) | (509,979) | (77,433) | (1,265,365) | ||||||||||
84,257 | 1,165,163 | 31,527 | 484,045 | |||||||||||
R5 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | — | — | 21 | 313 | ||||||||||
Issued in reinvestment of distributions | 86 | 1,184 | 25 | 372 | ||||||||||
Redeemed | — | — | (210) | (3,192) | ||||||||||
86 | 1,184 | (164) | (2,507) | |||||||||||
R6 Class/Shares Authorized | 45,000,000 | 50,000,000 | ||||||||||||
Sold | 555,206 | 7,366,511 | 1,485,610 | 23,290,435 | ||||||||||
Issued in reinvestment of distributions | 319,036 | 4,381,413 | 176,481 | 2,615,452 | ||||||||||
Redeemed | (335,349) | (4,349,521) | (3,339,362) | (52,603,236) | ||||||||||
538,893 | 7,398,403 | (1,677,271) | (26,697,349) | |||||||||||
G Class/Shares Authorized | 1,000,000,000 | N/A | ||||||||||||
Sold | 900,946 | 10,444,136 | ||||||||||||
Issued in connection with reorganization (Note 9) | 117,485,888 | 1,376,170,527 | ||||||||||||
Issued in reinvestment of distributions | 5 | 62 | ||||||||||||
Redeemed | (28,089) | (315,736) | ||||||||||||
118,358,750 | 1,386,298,989 | |||||||||||||
Net increase (decrease) | 138,626,527 | $ | 1,662,164,065 | 1,057,395 | $ | 10,990,793 |
(1)April 1, 2022 (commencement of sale) through May 31, 2022 for the G Class.
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6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
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 | $ | 113,264,344 | $ | 2,535,276,718 | — | ||||||
Short-Term Investments | 16,407,740 | 27,200,283 | — | ||||||||
$ | 129,672,084 | $ | 2,562,477,001 | — |
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, war, 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.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 2,407,381,617 | |||
Gross tax appreciation of investments | $ | 457,528,318 | |||
Gross tax depreciation of investments | (172,760,850) | ||||
Net tax appreciation (depreciation) of investments | $ | 284,767,468 |
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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9. Reorganization
On December 2, 2021, the Board of Directors approved an agreement and plan of reorganization (the reorganization), whereby the net assets of NT International Growth Fund, one fund in a series issued by the corporation, were transferred to International Growth Fund in exchange for shares of International Growth 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 Growth Fund survived after the reorganization. The reorganization was effective at the close of the NYSE on April 22, 2022.
The reorganization was accomplished by a tax-free exchange of shares. On April 22, 2022, NT International Growth Fund exchanged its shares for shares of International Growth Fund as follows:
Original Fund/Class | Shares Exchanged | New Fund/Class | Shares Received | ||||||||
NT International Growth Fund – G Class | 121,105,612 | International Growth Fund – G Class | 117,485,888 |
The net assets of NT International Growth Fund and International Growth Fund immediately before the reorganization were $1,376,170,527 and $1,410,203,074, respectively. NT International Growth Fund's unrealized appreciation of $121,255,453 was combined with that of International Growth Fund. Immediately after the reorganization, the combined net assets were $2,786,373,601.
Assuming the reorganization had been completed on December 1, 2021, the beginning of the annual reporting period, the pro forma results of operations for the period ended May 31, 2022 are as follows:
Net investment income (loss) | $ | 35,880,373 | |||
Net realized and unrealized gain (loss) | (646,404,389) | ||||
Net increase (decrease) in net assets resulting from operations | $ | (610,524,016) |
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 NT International Growth Fund that have been included in the fund’s Statement of Operations since April 22, 2022.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $16.24 | 0.14 | (2.93) | (2.79) | (0.17) | (1.91) | (2.08) | $11.37 | (19.29)% | 1.47%(4) | 1.47%(4) | 2.69%(4) | 2.69%(4) | 26% | $929,147 | ||||||||||||||||||||||||||||||||
2021 | $15.32 | 0.09 | 1.51 | 1.60 | —(5) | (0.68) | (0.68) | $16.24 | 10.83% | 1.21% | 1.21% | 0.56% | 0.56% | 51% | $1,163,803 | ||||||||||||||||||||||||||||||||
2020 | $12.35 | 0.01 | 3.01 | 3.02 | (0.01) | (0.04) | (0.05) | $15.32 | 24.57% | 1.18% | 1.18% | 0.06% | 0.06% | 51% | $1,243,217 | ||||||||||||||||||||||||||||||||
2019 | $11.83 | 0.05 | 1.66 | 1.71 | (0.12) | (1.07) | (1.19) | $12.35 | 16.82% | 1.18% | 1.18% | 0.43% | 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% | 1.17% | 0.62% | 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% | 1.17% | 0.80% | 0.80% | 57% | $1,357,353 | ||||||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $16.13 | 0.16 | (2.91) | (2.75) | (0.21) | (1.91) | (2.12) | $11.26 | (19.21)% | 1.27%(4) | 1.27%(4) | 2.89%(4) | 2.89%(4) | 26% | $277,838 | ||||||||||||||||||||||||||||||||
2021 | $15.22 | 0.14 | 1.48 | 1.62 | (0.03) | (0.68) | (0.71) | $16.13 | 11.07% | 1.01% | 1.01% | 0.76% | 0.76% | 51% | $265,248 | ||||||||||||||||||||||||||||||||
2020 | $12.27 | 0.03 | 3.00 | 3.03 | (0.04) | (0.04) | (0.08) | $15.22 | 24.82% | 0.98% | 0.98% | 0.26% | 0.26% | 51% | $82,222 | ||||||||||||||||||||||||||||||||
2019 | $11.76 | 0.07 | 1.66 | 1.73 | (0.15) | (1.07) | (1.22) | $12.27 | 17.09% | 0.98% | 0.98% | 0.63% | 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% | 0.97% | 0.82% | 0.82% | 69% | $67,677 | ||||||||||||||||||||||||||||||||
2017 | $10.51 | 0.13 | 3.17 | 3.30 | (0.07) | — | (0.07) | $13.74 | 31.64% | 0.97% | 0.97% | 1.00% | 1.00% | 57% | $90,679 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $16.15 | 0.16 | (2.90) | (2.74) | (0.24) | (1.91) | (2.15) | $11.26 | (19.15)% | 1.12%(4) | 1.12%(4) | 3.04%(4) | 3.04%(4) | 26% | $41,682 | ||||||||||||||||||||||||||||||||
2021 | $15.24 | 0.16 | 1.49 | 1.65 | (0.06) | (0.68) | (0.74) | $16.15 | 11.23% | 0.86% | 0.86% | 0.91% | 0.91% | 51% | $47,542 | ||||||||||||||||||||||||||||||||
2020 | $12.29 | 0.05 | 2.99 | 3.04 | (0.05) | (0.04) | (0.09) | $15.24 | 24.97% | 0.83% | 0.83% | 0.41% | 0.41% | 51% | $29,299 | ||||||||||||||||||||||||||||||||
2019 | $11.78 | 0.08 | 1.66 | 1.74 | (0.16) | (1.07) | (1.23) | $12.29 | 17.27% | 0.83% | 0.83% | 0.78% | 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% | 0.82% | 0.97% | 0.97% | 69% | $6,177 | ||||||||||||||||||||||||||||||||
2017(6) | $11.48 | 0.09 | 2.18 | 2.27 | — | — | — | $13.75 | 19.77% | 0.82%(4) | 0.82%(4) | 1.14%(4) | 1.14%(4) | 57%(7) | $6 | ||||||||||||||||||||||||||||||||
A Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $16.31 | 0.12 | (2.94) | (2.82) | (0.13) | (1.91) | (2.04) | $11.45 | (19.41)% | 1.72%(4) | 1.72%(4) | 2.44%(4) | 2.44%(4) | 26% | $68,987 | ||||||||||||||||||||||||||||||||
2021 | $15.42 | 0.05 | 1.52 | 1.57 | — | (0.68) | (0.68) | $16.31 | 10.53% | 1.46% | 1.46% | 0.31% | 0.31% | 51% | $87,967 | ||||||||||||||||||||||||||||||||
2020 | $12.45 | (0.02) | 3.03 | 3.01 | — | (0.04) | (0.04) | $15.42 | 24.27% | 1.43% | 1.43% | (0.19)% | (0.19)% | 51% | $81,088 | ||||||||||||||||||||||||||||||||
2019 | $11.91 | 0.02 | 1.69 | 1.71 | (0.10) | (1.07) | (1.17) | $12.45 | 16.56% | 1.43% | 1.43% | 0.18% | 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% | 1.42% | 0.37% | 0.37% | 69% | $64,784 | ||||||||||||||||||||||||||||||||
2017 | $10.63 | 0.06 | 3.22 | 3.28 | (0.03) | — | (0.03) | $13.88 | 30.88% | 1.42% | 1.42% | 0.55% | 0.55% | 57% | $77,983 |
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) | |||||||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $15.41 | 0.06 | (2.76) | (2.70) | (0.03) | (1.91) | (1.94) | $10.77 | (19.65)% | 2.47%(4) | 2.47%(4) | 1.69%(4) | 1.69%(4) | 26% | $938 | ||||||||||||||||||||||||||||||||
2021 | $14.71 | (0.08) | 1.46 | 1.38 | — | (0.68) | (0.68) | $15.41 | 9.72% | 2.21% | 2.21% | (0.44)% | (0.44)% | 51% | $1,462 | ||||||||||||||||||||||||||||||||
2020 | $11.97 | (0.11) | 2.89 | 2.78 | — | (0.04) | (0.04) | $14.71 | 23.32% | 2.18% | 2.18% | (0.94)% | (0.94)% | 51% | $1,855 | ||||||||||||||||||||||||||||||||
2019 | $11.49 | (0.06) | 1.62 | 1.56 | (0.01) | (1.07) | (1.08) | $11.97 | 15.66% | 2.18% | 2.18% | (0.57)% | (0.57)% | 68% | $2,694 | ||||||||||||||||||||||||||||||||
2018 | $13.42 | (0.04) | (1.25) | (1.29) | — | (0.64) | (0.64) | $11.49 | (10.12)% | 2.17% | 2.17% | (0.38)% | (0.38)% | 69% | $4,268 | ||||||||||||||||||||||||||||||||
2017 | $10.33 | (0.03) | 3.12 | 3.09 | — | — | — | $13.42 | 29.91% | 2.17% | 2.17% | (0.20)% | (0.20)% | 57% | $6,743 | ||||||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $16.40 | 0.11 | (2.97) | (2.86) | (0.08) | (1.91) | (1.99) | $11.55 | (19.50)% | 1.97%(4) | 1.97%(4) | 2.19%(4) | 2.19%(4) | 26% | $6,319 | ||||||||||||||||||||||||||||||||
2021 | $15.54 | 0.01 | 1.53 | 1.54 | — | (0.68) | (0.68) | $16.40 | 10.25% | 1.71% | 1.71% | 0.06% | 0.06% | 51% | $7,589 | ||||||||||||||||||||||||||||||||
2020 | $12.58 | (0.06) | 3.06 | 3.00 | — | (0.04) | (0.04) | $15.54 | 24.04% | 1.68% | 1.68% | (0.44)% | (0.44)% | 51% | $6,701 | ||||||||||||||||||||||||||||||||
2019 | $12.02 | (0.01) | 1.71 | 1.70 | (0.07) | (1.07) | (1.14) | $12.58 | 16.17% | 1.68% | 1.68% | (0.07)% | (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% | 1.67% | 0.12% | 0.12% | 69% | $3,226 | ||||||||||||||||||||||||||||||||
2017 | $10.72 | 0.03 | 3.25 | 3.28 | — | — | — | $14.00 | 30.60% | 1.67% | 1.67% | 0.30% | 0.30% | 57% | $3,609 |
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) | |||||||||||||||||||||||||||||||||
R5 Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $16.14 | 0.15 | (2.90) | (2.75) | (0.21) | (1.91) | (2.12) | $11.27 | (19.20)% | 1.27%(4) | 1.27%(4) | 2.89%(4) | 2.89%(4) | 26% | $7 | ||||||||||||||||||||||||||||||||
2021 | $15.23 | 0.11 | 1.51 | 1.62 | (0.03) | (0.68) | (0.71) | $16.14 | 11.06% | 1.01% | 1.01% | 0.76% | 0.76% | 51% | $9 | ||||||||||||||||||||||||||||||||
2020 | $12.28 | 0.03 | 3.00 | 3.03 | (0.04) | (0.04) | (0.08) | $15.23 | 24.80% | 0.98% | 0.98% | 0.26% | 0.26% | 51% | $11 | ||||||||||||||||||||||||||||||||
2019 | $11.77 | 0.07 | 1.66 | 1.73 | (0.15) | (1.07) | (1.22) | $12.28 | 17.09% | 0.98% | 0.98% | 0.63% | 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% | 0.97% | 0.82% | 0.82% | 69% | $5 | ||||||||||||||||||||||||||||||||
2017(6) | $11.48 | 0.08 | 2.17 | 2.25 | — | — | — | $13.73 | 19.60% | 0.97%(4) | 0.97%(4) | 0.99%(4) | 0.99%(4) | 57%(7) | $6 | ||||||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $16.14 | 0.16 | (2.90) | (2.74) | (0.24) | (1.91) | (2.15) | $11.25 | (19.17)% | 1.12%(4) | 1.12%(4) | 3.04%(4) | 3.04%(4) | 26% | $27,924 | ||||||||||||||||||||||||||||||||
2021 | $15.23 | 0.14 | 1.51 | 1.65 | (0.06) | (0.68) | (0.74) | $16.14 | 11.23% | 0.86% | 0.86% | 0.91% | 0.91% | 51% | $31,350 | ||||||||||||||||||||||||||||||||
2020 | $12.28 | 0.05 | 2.99 | 3.04 | (0.05) | (0.04) | (0.09) | $15.23 | 24.99% | 0.83% | 0.83% | 0.41% | 0.41% | 51% | $55,137 | ||||||||||||||||||||||||||||||||
2019 | $11.77 | 0.09 | 1.65 | 1.74 | (0.16) | (1.07) | (1.23) | $12.28 | 17.28% | 0.83% | 0.83% | 0.78% | 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% | 0.82% | 0.97% | 0.97% | 69% | $38,315 | ||||||||||||||||||||||||||||||||
2017 | $10.53 | 0.15 | 3.16 | 3.31 | (0.09) | — | (0.09) | $13.75 | 31.68% | 0.82% | 0.82% | 1.15% | 1.15% | 57% | $29,846 | ||||||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(8) | $12.81 | 0.09 | (1.30) | (1.21) | (0.08) | (0.24) | (0.32) | $11.28 | (9.59)% | 0.13%(4) | 1.00%(4) | 5.03%(4) | 4.16%(4) | 26%(9) | $1,334,833 |
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, 2022 (unaudited).
(4)Annualized.
(5)Per-share amount was less than $0.005.
(6)April 10, 2017 (commencement of sale) through November 30, 2017.
(7)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2017.
(8)April 1, 2022 (commencement of sale) through May 31, 2022 (unaudited).
(9)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the six months ended May 31, 2022.
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 the Program Administrator, including members of 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 certain Fund’s investments is supported by a third-party liquidity assessment vendor.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period January 1, 2021 through December 31, 2021. 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.
26
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. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
27
Notes |
28
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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. | ||||||||
©2022 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92630 2207 |
![acihorizblkd50.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/acihorizblkd50.jpg)
Semiannual Report | |||||
May 31, 2022 | |||||
International Opportunities Fund | |||||
Investor Class (AIOIX) | |||||
I Class (ACIOX) | |||||
A Class (AIVOX) | |||||
C Class (AIOCX) | |||||
R Class (AIORX) |
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 |
![image26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image26.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2022. 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.
Soaring Prices, Sharp Volatility Sank Stock Returns
Global investors faced an unusual set of challenges in the six-month period. From soaring inflation and rising interest rates to mounting geopolitical unrest and slowing growth, global stocks struggled amid intense volatility.
Inflation was already at multiyear highs when the reporting period began. This was largely due to massive fiscal and monetary support, escalating energy prices, supply chain breakdowns and labor market shortages. Russia’s invasion of Ukraine in February sent commodity prices even higher, exacerbating existing inflationary pressures and further damaging global supply chains.
By period-end, inflation lingered at a 40-year high in the U.S. and the U.K. and a record high in the eurozone. Most emerging markets also grappled with rising inflation. At the same time, global economic growth slowed dramatically, further complicated by COVID-19-related lockdowns that shut down key manufacturing hubs in China.
The Federal Reserve responded to surging inflation in March, launching a rate-hike campaign and ending its bond-buying program. The Bank of England executed a series of rate hikes, while the European Central Bank said it would end its bond buying in the third quarter.
The combination of accelerating inflation, tighter monetary policy, geopolitical strife and slowing economic growth fueled widespread and sharp market volatility. Global stock returns broadly declined for the six-month period. Developed markets stocks generally fared better than emerging markets stocks, while U.S. stocks underperformed other developed markets.
Staying Disciplined in Uncertain Times
We expect market volatility to linger as investors navigate this complex environment of high inflation, rising interest rates and economic uncertainty. In addition, Russia’s invasion of Ukraine complicates a tense geopolitical backdrop. We will continue to monitor this evolving situation and its implications for our clients and investment exposure.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
![image35.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image35.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2022 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 98.6% | ||||
Exchange-Traded Funds | 0.1% | ||||
Short-Term Investments | 4.7% | ||||
Other Assets and Liabilities | (3.4)% | ||||
Top Five Countries* | % of net assets | ||||
Japan | 15.6% | ||||
Canada | 13.9% | ||||
Australia | 9.0% | ||||
Brazil | 6.9% | ||||
United Kingdom | 6.7% | ||||
*Exposure indicated excludes Exchange-Traded Funds. The Schedule of Investments provides additional information on the fund's portfolio holdings. |
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, 2021 to May 31, 2022.
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 12/1/21 | Ending Account Value 5/31/22 | Expenses Paid During Period(1) 12/1/21 - 5/31/22 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $792.90 | $6.70 | 1.50% | ||||||||||
I Class | $1,000 | $794.60 | $5.82 | 1.30% | ||||||||||
A Class | $1,000 | $791.90 | $7.82 | 1.75% | ||||||||||
C Class | $1,000 | $789.40 | $11.15 | 2.50% | ||||||||||
R Class | $1,000 | $791.00 | $8.93 | 2.00% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,017.45 | $7.54 | 1.50% | ||||||||||
I Class | $1,000 | $1,018.45 | $6.54 | 1.30% | ||||||||||
A Class | $1,000 | $1,016.21 | $8.80 | 1.75% | ||||||||||
C Class | $1,000 | $1,012.47 | $12.54 | 2.50% | ||||||||||
R Class | $1,000 | $1,014.96 | $10.05 | 2.00% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
5
Schedule of Investments |
MAY 31, 2022 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 98.6% | ||||||||
Australia — 9.0% | ||||||||
ALS Ltd. | 657,732 | $ | 6,017,115 | |||||
carsales.com Ltd. | 109,226 | 1,596,523 | ||||||
Cleanaway Waste Management Ltd. | 1,954,992 | 4,189,752 | ||||||
Corporate Travel Management Ltd.(1) | 366,690 | 5,824,743 | ||||||
IDP Education Ltd. | 224,648 | 3,825,118 | ||||||
IGO Ltd. | 700,353 | 6,279,865 | ||||||
Lynas Rare Earths Ltd.(1) | 944,545 | 6,620,122 | ||||||
Metcash Ltd. | 1,006,323 | 3,104,022 | ||||||
NEXTDC Ltd.(1) | 542,135 | 4,267,423 | ||||||
OZ Minerals Ltd. | 359,247 | 6,169,013 | ||||||
Pinnacle Investment Management Group Ltd. | 232,563 | 1,371,335 | ||||||
49,265,031 | ||||||||
Belgium — 0.8% | ||||||||
Euronav NV | 337,068 | 4,312,542 | ||||||
Brazil — 6.9% | ||||||||
Cia Brasileira de Aluminio | 1,296,800 | 4,330,352 | ||||||
Embraer SA, ADR(1) | 242,140 | 2,593,319 | ||||||
Minerva SA | 1,029,700 | 3,070,110 | ||||||
Multiplan Empreendimentos Imobiliarios SA | 1,713,300 | 8,673,659 | ||||||
Petro Rio SA(1) | 1,199,700 | 7,015,111 | ||||||
Santos Brasil Participacoes SA | 2,328,200 | 3,595,751 | ||||||
SLC Agricola SA | 306,800 | 3,574,400 | ||||||
TOTVS SA | 795,200 | 4,708,405 | ||||||
37,561,107 | ||||||||
Canada — 13.9% | ||||||||
Altus Group Ltd. | 115,205 | 4,298,157 | ||||||
Aritzia, Inc.(1) | 94,303 | 2,752,632 | ||||||
ATS Automation Tooling Systems, Inc.(1) | 99,041 | 2,907,374 | ||||||
Boralex, Inc., A Shares | 192,528 | 5,876,986 | ||||||
Brookfield Infrastructure Corp., Class A | 93,952 | 6,628,314 | ||||||
Capstone Mining Corp.(1) | 1,111,382 | 4,208,815 | ||||||
Colliers International Group, Inc. (Toronto) | 23,582 | 2,869,887 | ||||||
Descartes Systems Group, Inc.(1) | 44,983 | 2,669,071 | ||||||
Finning International, Inc. | 143,535 | 3,815,193 | ||||||
Kinaxis, Inc.(1) | 45,288 | 5,029,533 | ||||||
Laurentian Bank of Canada(2) | 113,503 | 3,464,720 | ||||||
Nuvei Corp.(1) | 84,024 | 4,322,195 | ||||||
SSR Mining, Inc. | 248,585 | 4,830,007 | ||||||
Stantec, Inc. | 151,674 | 6,887,895 | ||||||
Tricon Residential, Inc. (Toronto) | 442,040 | 5,479,849 | ||||||
Whitecap Resources, Inc.(2) | 1,082,681 | 9,629,728 | ||||||
75,670,356 | ||||||||
Denmark — 3.1% | ||||||||
ALK-Abello A/S(1) | 222,046 | 4,429,109 | ||||||
Jyske Bank A/S(1) | 108,421 | 6,393,266 | ||||||
Royal Unibrew A/S | 66,277 | 5,815,518 | ||||||
16,637,893 |
6
Shares | Value | |||||||
Finland — 1.8% | ||||||||
Huhtamaki Oyj | 162,484 | $ | 6,261,852 | |||||
Metso Outotec Oyj | 384,496 | 3,587,619 | ||||||
9,849,471 | ||||||||
France — 3.5% | ||||||||
Alten SA | 21,007 | 2,804,261 | ||||||
Elis SA | 332,570 | 5,284,678 | ||||||
Gaztransport Et Technigaz SA | 45,924 | 6,022,838 | ||||||
OVH Groupe SAS(1)(2) | 253,126 | 5,153,149 | ||||||
19,264,926 | ||||||||
Germany — 2.9% | ||||||||
Befesa SA | 100,642 | 6,703,808 | ||||||
CTS Eventim AG & Co. KGaA(1) | 80,523 | 5,183,907 | ||||||
K+S AG | 138,458 | 3,894,445 | ||||||
15,782,160 | ||||||||
Hong Kong — 1.0% | ||||||||
Samsonite International SA(1) | 2,316,000 | 5,276,927 | ||||||
India — 5.1% | ||||||||
Max Healthcare Institute Ltd.(1) | 1,430,954 | 6,972,642 | ||||||
Prestige Estates Projects Ltd. | 782,368 | 4,293,433 | ||||||
Varun Beverages Ltd. | 532,614 | 7,212,438 | ||||||
WNS Holdings Ltd., ADR(1) | 124,456 | 9,056,663 | ||||||
27,535,176 | ||||||||
Israel — 1.1% | ||||||||
Nova Ltd.(1) | 56,693 | 6,021,931 | ||||||
Italy — 3.4% | ||||||||
Autogrill SpA(1) | 886,754 | 6,672,204 | ||||||
Brembo SpA(2) | 55,045 | 639,611 | ||||||
Leonardo SpA(1) | 640,268 | 6,893,970 | ||||||
Unipol Gruppo SpA | 822,730 | 4,402,744 | ||||||
18,608,529 | ||||||||
Japan — 15.6% | ||||||||
Asics Corp. | 171,200 | 2,939,677 | ||||||
BayCurrent Consulting, Inc. | 18,200 | 5,718,118 | ||||||
GMO Financial Gate, Inc.(2) | 31,300 | 3,232,772 | ||||||
IHI Corp. | 252,400 | 7,082,410 | ||||||
Insource Co. Ltd. | 245,400 | 4,278,449 | ||||||
Invincible Investment Corp. | 14,084 | 4,678,887 | ||||||
Jeol Ltd. | 102,500 | 4,951,772 | ||||||
JMDC, Inc. | 97,300 | 3,908,571 | ||||||
MatsukiyoCocokara & Co. | 70,000 | 2,691,320 | ||||||
Menicon Co. Ltd. | 159,500 | 3,315,185 | ||||||
Nextage Co. Ltd. | 317,000 | 5,008,563 | ||||||
Nippon Gas Co. Ltd. | 400,200 | 5,945,358 | ||||||
Open House Group Co. Ltd. | 73,700 | 3,067,898 | ||||||
SHO-BOND Holdings Co. Ltd. | 121,400 | 5,432,181 | ||||||
Tokyo Ohka Kogyo Co. Ltd.(2) | 89,800 | 5,106,649 | ||||||
Toyo Suisan Kaisha Ltd. | 109,500 | 4,097,055 | ||||||
Ushio, Inc. | 342,100 | 4,711,061 | ||||||
Visional, Inc.(1) | 74,400 | 3,462,905 | ||||||
West Holdings Corp.(2) | 142,300 | 5,105,367 | ||||||
84,734,198 |
7
Shares | Value | |||||||
Mexico — 2.0% | ||||||||
Controladora Vuela Cia de Aviacion SAB de CV, ADR(1) | 269,655 | $ | 4,201,225 | |||||
Grupo Aeroportuario del Centro Norte SAB de CV | 367,635 | 2,649,221 | ||||||
Regional SAB de CV | 662,594 | 3,927,992 | ||||||
10,778,438 | ||||||||
Netherlands — 4.1% | ||||||||
AMG Advanced Metallurgical Group NV | 128,554 | 4,718,723 | ||||||
ASR Nederland NV | 177,841 | 8,097,557 | ||||||
Basic-Fit NV(1) | 107,900 | 4,523,582 | ||||||
BE Semiconductor Industries NV | 38,384 | 2,347,065 | ||||||
OCI NV(1) | 77,850 | 2,733,583 | ||||||
22,420,510 | ||||||||
New Zealand — 0.5% | ||||||||
Contact Energy Ltd. | 520,674 | 2,523,673 | ||||||
Norway — 0.5% | ||||||||
Bakkafrost P/F | 43,568 | 2,901,010 | ||||||
South Africa — 1.1% | ||||||||
Bidvest Group Ltd. | 418,377 | 5,832,070 | ||||||
South Korea — 1.0% | ||||||||
Hite Jinro Co. Ltd. | 137,012 | 3,936,308 | ||||||
Osstem Implant Co. Ltd. | 19,844 | 1,752,832 | ||||||
5,689,140 | ||||||||
Sweden — 6.2% | ||||||||
AddTech AB, B Shares | 299,510 | 5,064,679 | ||||||
Axfood AB(2) | 139,347 | 4,090,992 | ||||||
Axfood AB BTA(2) | 3,920 | 114,799 | ||||||
Fortnox AB | 543,562 | 3,216,836 | ||||||
Holmen AB, B Shares | 83,928 | 4,317,401 | ||||||
Lifco AB, B Shares | 107,404 | 2,213,816 | ||||||
Saab AB, B Shares | 141,103 | 6,003,195 | ||||||
Scandic Hotels Group AB(1)(2) | 1,203,582 | 4,948,735 | ||||||
Trelleborg AB, B Shares | 118,834 | 2,774,982 | ||||||
Vitrolife AB | 40,179 | 1,190,879 | ||||||
33,936,314 | ||||||||
Switzerland — 1.7% | ||||||||
PolyPeptide Group AG(1) | 7,177 | 564,686 | ||||||
Siegfried Holding AG(1) | 6,869 | 4,649,972 | ||||||
SIG Group AG(1) | 191,453 | 4,184,220 | ||||||
9,398,878 | ||||||||
Taiwan — 6.7% | ||||||||
Airtac International Group | 187,131 | 6,091,242 | ||||||
ASPEED Technology, Inc. | 40,000 | 3,179,805 | ||||||
Chailease Holding Co. Ltd. | 699,261 | 5,380,510 | ||||||
E Ink Holdings, Inc. | 887,000 | 6,169,079 | ||||||
Pegavision Corp. | 377,000 | 5,689,752 | ||||||
Sinbon Electronics Co. Ltd. | 605,000 | 5,381,442 | ||||||
Wiwynn Corp. | 144,000 | 4,536,620 | ||||||
36,428,450 | ||||||||
United Kingdom — 6.7% | ||||||||
Auction Technology Group PLC(1) | 192,159 | 2,469,904 | ||||||
Britvic PLC | 340,245 | 3,530,603 | ||||||
Computacenter PLC | 132,665 | 4,243,080 |
8
Shares | Value | |||||||
Diploma PLC | 88,924 | $ | 2,912,932 | |||||
Endava PLC, ADR(1) | 35,951 | 3,627,096 | ||||||
Greggs PLC | 48,900 | 1,392,578 | ||||||
JET2 PLC(1) | 104,399 | 1,536,894 | ||||||
RS GROUP PLC | 407,983 | 4,978,797 | ||||||
Tritax Big Box REIT PLC | 2,945,552 | 7,556,294 | ||||||
Watches of Switzerland Group PLC(1) | 357,582 | 4,240,058 | ||||||
36,488,236 | ||||||||
TOTAL COMMON STOCKS (Cost $537,767,497) | 536,916,966 | |||||||
EXCHANGE-TRADED FUNDS — 0.1% | ||||||||
Schwab International Small-Cap Equity ETF(2) (Cost $311,853) | 8,079 | 286,239 | ||||||
SHORT-TERM INVESTMENTS — 4.7% | ||||||||
Money Market Funds — 3.6% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 1,186,849 | 1,186,849 | ||||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) | 18,483,095 | 18,483,095 | ||||||
19,669,944 | ||||||||
Repurchase Agreements — 1.1% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.50% - 4.375%, 2/15/38 - 2/15/45, valued at $578,450), in a joint trading account at 0.74%, dated 5/31/22, due 6/1/22 (Delivery value $567,272) | 567,260 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 4.50%, 5/15/38, valued at $5,797,769), at 0.75%, dated 5/31/22, due 6/1/22 (Delivery value $5,684,118) | 5,684,000 | |||||||
6,251,260 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $25,921,204) | 25,921,204 | |||||||
TOTAL INVESTMENT SECURITIES — 103.4% (Cost $564,000,554) | 563,124,409 | |||||||
OTHER ASSETS AND LIABILITIES — (3.4)% | (18,733,356) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 544,391,053 |
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Industrials | 22.6% | ||||
Information Technology | 15.6% | ||||
Materials | 11.6% | ||||
Consumer Discretionary | 9.2% | ||||
Consumer Staples | 8.1% | ||||
Real Estate | 7.6% | ||||
Health Care | 6.8% | ||||
Financials | 6.0% | ||||
Energy | 5.0% | ||||
Utilities | 4.8% | ||||
Communication Services | 1.3% | ||||
Exchange-Traded Funds | 0.1% | ||||
Short-Term Investments | 4.7% | ||||
Other Assets and Liabilities | (3.4)% |
9
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
ADR | - | American Depositary Receipt |
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $29,116,268. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $31,039,296, which includes securities collateral of $12,556,201.
See Notes to Financial Statements.
10
Statement of Assets and Liabilities |
MAY 31, 2022 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $545,517,459) — including $29,116,268 of securities on loan | $ | 544,641,314 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $18,483,095) | 18,483,095 | ||||
Total investment securities, at value (cost of $564,000,554) | 563,124,409 | ||||
Foreign currency holdings, at value (cost of $291) | 294 | ||||
Receivable for investments sold | 1,417,777 | ||||
Receivable for capital shares sold | 83,627 | ||||
Dividends and interest receivable | 1,487,400 | ||||
Securities lending receivable | 166,515 | ||||
Other assets | 124,866 | ||||
566,404,888 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 18,483,095 | ||||
Payable for investments purchased | 2,390,577 | ||||
Payable for capital shares redeemed | 341,425 | ||||
Accrued management fees | 622,135 | ||||
Distribution and service fees payable | 2,170 | ||||
Accrued foreign withholding tax reclaim expenses | 174,433 | ||||
22,013,835 | |||||
Net Assets | $ | 544,391,053 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 579,921,204 | |||
Distributable earnings | (35,530,151) | ||||
$ | 544,391,053 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $426,846,843 | 46,278,806 | $9.22 | ||||||||
I Class, $0.01 Par Value | $109,822,756 | 11,721,880 | $9.37 | ||||||||
A Class, $0.01 Par Value | $5,647,750 | 620,381 | $9.10* | ||||||||
C Class, $0.01 Par Value | $302,232 | 35,599 | $8.49 | ||||||||
R Class, $0.01 Par Value | $1,771,472 | 197,826 | $8.95 |
*Maximum offering price $9.66 (net asset value divided by 0.9425).
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $467,439) | $ | 3,878,532 | |||
Foreign withholding tax recoveries | 1,186,570 | ||||
Interest | 259,481 | ||||
Securities lending, net | 218,781 | ||||
5,543,364 | |||||
Expenses: | |||||
Management fees | 4,196,976 | ||||
Distribution and service fees: | |||||
A Class | 8,649 | ||||
C Class | 2,495 | ||||
R Class | 4,714 | ||||
Directors' fees and expenses | 6,891 | ||||
Foreign withholding tax reclaim expenses | 319,564 | ||||
Other expenses | 10,032 | ||||
4,549,321 | |||||
Net investment income (loss) | 994,043 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | (22,331,379) | ||||
Foreign currency translation transactions | (539,714) | ||||
(22,871,093) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | (123,710,511) | ||||
Translation of assets and liabilities in foreign currencies | (34,805) | ||||
(123,745,316) | |||||
Net realized and unrealized gain (loss) | (146,616,409) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (145,622,366) |
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2021 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2022 | November 30, 2021 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 994,043 | $ | (2,034,683) | ||||
Net realized gain (loss) | (22,871,093) | 120,074,126 | ||||||
Change in net unrealized appreciation (depreciation) | (123,745,316) | (51,958,001) | ||||||
Net increase (decrease) in net assets resulting from operations | (145,622,366) | 66,081,442 | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (88,794,481) | (18,706,813) | ||||||
I Class | (21,915,086) | (3,151,509) | ||||||
A Class | (1,277,370) | (240,368) | ||||||
C Class | (107,888) | (34,163) | ||||||
R Class | (310,275) | (47,944) | ||||||
Decrease in net assets from distributions | (112,405,100) | (22,180,797) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 73,693,578 | 15,262,600 | ||||||
Net increase (decrease) in net assets | (184,333,888) | 59,163,245 | ||||||
Net Assets | ||||||||
Beginning of period | 728,724,941 | 669,561,696 | ||||||
End of period | $ | 544,391,053 | $ | 728,724,941 |
See Notes to Financial Statements.
13
Notes to Financial Statements |
MAY 31, 2022 (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 (NAV) 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 NAV 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 NAV 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 withholding tax recoveries represent the receipt of certain European Union (EU) withholding taxes previously withheld. The fund will record any EU reclaims only when certainty exists as to the likelihood of receipt.
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.
15
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. 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.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 31, 2022.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 18,405,548 | — | — | — | $ | 18,405,548 | ||||||||||
Exchange-Traded Funds | 77,547 | — | — | — | 77,547 | ||||||||||||
Total Borrowings | $ | 18,483,095 | — | — | — | $ | 18,483,095 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 18,483,095 |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
16
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, 2022 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |||||||
Investor Class | 1.200% to 1.550% | 1.39% | ||||||
I Class | 1.000% to 1.350% | 1.19% | ||||||
A Class | 1.200% to 1.550% | 1.39% | ||||||
C Class | 1.200% to 1.550% | 1.39% | ||||||
R Class | 1.200% to 1.550% | 1.39% |
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, 2022 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.
Foreign Withholding Tax Reclaim Expenses — The fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The fund may incur expenses in association with recovery of such taxes. The impact of foreign withholding tax reclaim expenses to the annualized ratio of operating expenses to average net assets was 0.10% for the period ended May 31, 2022.
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 $4,035 and there were no interfund sales.
17
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2022 were $372,019,725 and $415,111,658, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2022 | Year ended November 30, 2021 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 670,000,000 | 670,000,000 | ||||||||||||
Sold | 767,137 | $ | 8,166,995 | 2,437,144 | $ | 34,367,124 | ||||||||
Issued in reinvestment of distributions | 7,261,013 | 83,356,434 | 1,354,945 | 17,560,086 | ||||||||||
Redeemed | (3,553,596) | (37,629,627) | (5,628,705) | (78,750,887) | ||||||||||
4,474,554 | 53,893,802 | (1,836,616) | (26,823,677) | |||||||||||
I Class/Shares Authorized | 95,000,000 | 95,000,000 | ||||||||||||
Sold | 1,937,202 | 20,668,308 | 4,218,085 | 60,805,209 | ||||||||||
Issued in reinvestment of distributions | 1,879,082 | 21,891,303 | 239,554 | 3,142,942 | ||||||||||
Redeemed | (2,217,842) | (23,538,010) | (1,569,667) | (22,513,217) | ||||||||||
1,598,442 | 19,021,601 | 2,887,972 | 41,434,934 | |||||||||||
A Class/Shares Authorized | 35,000,000 | 40,000,000 | ||||||||||||
Sold | 37,002 | 390,258 | 92,719 | 1,297,041 | ||||||||||
Issued in reinvestment of distributions | 108,812 | 1,233,933 | 18,060 | 231,711 | ||||||||||
Redeemed | (129,149) | (1,284,880) | (69,487) | (962,100) | ||||||||||
16,665 | 339,311 | 41,292 | 566,652 | |||||||||||
C Class/Shares Authorized | 25,000,000 | 30,000,000 | ||||||||||||
Sold | 205 | 2,140 | 2,433 | 32,156 | ||||||||||
Issued in reinvestment of distributions | 10,159 | 107,888 | 2,798 | 34,163 | ||||||||||
Redeemed | (26,552) | (244,828) | (33,621) | (447,317) | ||||||||||
(16,188) | (134,800) | (28,390) | (380,998) | |||||||||||
R Class/Shares Authorized | 25,000,000 | 30,000,000 | ||||||||||||
Sold | 38,777 | 408,458 | 77,494 | 1,049,015 | ||||||||||
Issued in reinvestment of distributions | 27,778 | 310,275 | 3,781 | 47,944 | ||||||||||
Redeemed | (14,195) | (145,069) | (46,026) | (631,270) | ||||||||||
52,360 | 573,664 | 35,249 | 465,689 | |||||||||||
Net increase (decrease) | 6,125,833 | $ | 73,693,578 | 1,099,507 | $ | 15,262,600 |
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 | |||||||||||
Brazil | $ | 2,593,319 | $ | 34,967,788 | — | ||||||
Canada | 15,780,516 | 59,889,840 | — | ||||||||
India | 9,056,663 | 18,478,513 | — | ||||||||
Israel | 6,021,931 | — | — | ||||||||
Mexico | 4,201,225 | 6,577,213 | — | ||||||||
United Kingdom | 3,627,096 | 32,861,140 | — | ||||||||
Other Countries | — | 342,861,722 | — | ||||||||
Exchange-Traded Funds | 286,239 | — | — | ||||||||
Short-Term Investments | 19,669,944 | 6,251,260 | — | ||||||||
$ | 61,236,933 | $ | 501,887,476 | — |
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, war, 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 | $ | 568,212,035 | |||
Gross tax appreciation of investments | $ | 45,941,567 | |||
Gross tax depreciation of investments | (51,029,193) | ||||
Net tax appreciation (depreciation) of investments | $ | (5,087,626) |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $13.79 | 0.01 | (2.44) | (2.43) | (0.05) | (2.09) | (2.14) | $9.22 | (20.71)% | 1.50%(4) | 1.50%(4) | 0.28%(4) | 0.28%(4) | 59% | $426,847 | ||||||||||||||||||||||||||||||||
2021 | $12.95 | (0.04) | 1.31 | 1.27 | — | (0.43) | (0.43) | $13.79 | 10.01% | 1.37% | 1.37% | (0.30)% | (0.30)% | 127% | $576,312 | ||||||||||||||||||||||||||||||||
2020 | $10.17 | (0.01) | 2.89 | 2.88 | (0.10) | — | (0.10) | $12.95 | 28.52% | 1.40% | 1.40% | (0.12)% | (0.12)% | 131% | $565,150 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $13.98 | 0.03 | (2.48) | (2.45) | (0.07) | (2.09) | (2.16) | $9.37 | (20.54)% | 1.30%(4) | 1.30%(4) | 0.48%(4) | 0.48%(4) | 59% | $109,823 | ||||||||||||||||||||||||||||||||
2021 | $13.10 | (0.01) | 1.32 | 1.31 | — | (0.43) | (0.43) | $13.98 | 10.12% | 1.17% | 1.17% | (0.10)% | (0.10)% | 127% | $141,573 | ||||||||||||||||||||||||||||||||
2020 | $10.29 | 0.01 | 2.92 | 2.93 | (0.12) | — | (0.12) | $13.10 | 28.84% | 1.20% | 1.20% | 0.08% | 0.08% | 131% | $94,818 | ||||||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $13.62 | —(5) | (2.42) | (2.42) | (0.01) | (2.09) | (2.10) | $9.10 | (20.81)% | 1.75%(4) | 1.75%(4) | 0.03%(4) | 0.03%(4) | 59% | $5,648 | ||||||||||||||||||||||||||||||||
2021 | $12.83 | (0.08) | 1.30 | 1.22 | — | (0.43) | (0.43) | $13.62 | 9.70% | 1.62% | 1.62% | (0.55)% | (0.55)% | 127% | $8,220 | ||||||||||||||||||||||||||||||||
2020 | $10.07 | (0.04) | 2.87 | 2.83 | (0.07) | — | (0.07) | $12.83 | 28.28% | 1.65% | 1.65% | (0.37)% | (0.37)% | 131% | $7,214 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $12.87 | (0.04) | (2.25) | (2.29) | — | (2.09) | (2.09) | $8.49 | (21.06)% | 2.50%(4) | 2.50%(4) | (0.72)%(4) | (0.72)%(4) | 59% | $302 | ||||||||||||||||||||||||||||||||
2021 | $12.23 | (0.17) | 1.24 | 1.07 | — | (0.43) | (0.43) | $12.87 | 8.93% | 2.37% | 2.37% | (1.30)% | (1.30)% | 127% | $667 | ||||||||||||||||||||||||||||||||
2020 | $9.61 | (0.11) | 2.73 | 2.62 | — | — | — | $12.23 | 27.26% | 2.40% | 2.40% | (1.12)% | (1.12)% | 131% | $981 | ||||||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $13.43 | (0.01) | (2.38) | (2.39) | — | (2.09) | (2.09) | $8.95 | (20.90)% | 2.00%(4) | 2.00%(4) | (0.22)%(4) | (0.22)%(4) | 59% | $1,771 | ||||||||||||||||||||||||||||||||
2021 | $12.69 | (0.11) | 1.28 | 1.17 | — | (0.43) | (0.43) | $13.43 | 9.41% | 1.87% | 1.87% | (0.80)% | (0.80)% | 127% | $1,954 | ||||||||||||||||||||||||||||||||
2020 | $9.96 | (0.07) | 2.84 | 2.77 | (0.04) | — | (0.04) | $12.69 | 27.96% | 1.90% | 1.90% | (0.62)% | (0.62)% | 131% | $1,398 | ||||||||||||||||||||||||||||||||
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 |
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, 2022 (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 the Program Administrator, including members of 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 certain Fund’s investments is supported by a third-party liquidity assessment vendor.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period January 1, 2021 through December 31, 2021. 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. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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. | ||||||||
©2022 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92635 2207 |
![acihorizblkd50.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/acihorizblkd50.jpg)
Semiannual Report | |||||
May 31, 2022 | |||||
International Small-Mid Cap Fund | |||||
Investor Class (ANTSX) | |||||
G Class (ANTMX) |
Table of Contents |
Presidents 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 |
![image26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image26.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2022. 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.
Soaring Prices, Sharp Volatility Sank Stock Returns
Global investors faced an unusual set of challenges in the six-month period. From soaring inflation and rising interest rates to mounting geopolitical unrest and slowing growth, global stocks struggled amid intense volatility.
Inflation was already at multiyear highs when the reporting period began. This was largely due to massive fiscal and monetary support, escalating energy prices, supply chain breakdowns and labor market shortages. Russia’s invasion of Ukraine in February sent commodity prices even higher, exacerbating existing inflationary pressures and further damaging global supply chains.
By period-end, inflation lingered at a 40-year high in the U.S. and the U.K. and a record high in the eurozone. Most emerging markets also grappled with rising inflation. At the same time, global economic growth slowed dramatically, further complicated by COVID-19-related lockdowns that shut down key manufacturing hubs in China.
The Federal Reserve responded to surging inflation in March, launching a rate-hike campaign and ending its bond-buying program. The Bank of England executed a series of rate hikes, while the European Central Bank said it would end its bond buying in the third quarter.
The combination of accelerating inflation, tighter monetary policy, geopolitical strife and slowing economic growth fueled widespread and sharp market volatility. Global stock returns broadly declined for the six-month period. Developed markets stocks generally fared better than emerging markets stocks, while U.S. stocks underperformed other developed markets.
Staying Disciplined in Uncertain Times
We expect market volatility to linger as investors navigate this complex environment of high inflation, rising interest rates and economic uncertainty. In addition, Russia’s invasion of Ukraine complicates a tense geopolitical backdrop. We will continue to monitor this evolving situation and its implications for our clients and investment exposure.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
![image35.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image35.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2022 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 98.8% | ||||
Exchange-Traded Funds | 0.1% | ||||
Short-Term Investments | 3.0% | ||||
Other Assets and Liabilities | (1.9)% | ||||
Top Five Countries* | % of net assets | ||||
Japan | 24.9% | ||||
Canada | 10.5% | ||||
Australia | 10.3% | ||||
Sweden | 6.6% | ||||
Italy | 5.9% |
*Exposure indicated excludes Exchange-Traded Funds. The Schedule of Investments provides additional information on the fund's portfolio holdings.
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, 2021 to May 31, 2022.
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 12/1/21 | Ending Account Value 5/31/22 | Expenses Paid During Period(1) 12/1/21 - 5/31/22 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $791.30 | $6.39 | 1.43% | ||||||||||
G Class | $1,000 | $796.50 | $0.00 | 0.00%(2) | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,017.80 | $7.19 | 1.43% | ||||||||||
G Class | $1,000 | $1,024.93 | $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 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
(2)Other expenses, which include directors' fees and expenses, did not exceed 0.005%.
4
Schedule of Investments |
MAY 31, 2022 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 98.8% | ||||||||
Australia — 10.3% | ||||||||
ALS Ltd. | 593,984 | $ | 5,433,932 | |||||
carsales.com Ltd. | 93,216 | 1,362,510 | ||||||
Cleanaway Waste Management Ltd. | 2,098,470 | 4,497,240 | ||||||
Corporate Travel Management Ltd.(1) | 324,518 | 5,154,855 | ||||||
Domain Holdings Australia Ltd. | 505,774 | 1,152,443 | ||||||
IDP Education Ltd. | 202,383 | 3,446,009 | ||||||
IGO Ltd. | 567,240 | 5,086,279 | ||||||
Lynas Rare Earths Ltd.(1) | 825,581 | 5,786,328 | ||||||
Metcash Ltd. | 829,867 | 2,559,740 | ||||||
NEXTDC Ltd.(1) | 524,649 | 4,129,782 | ||||||
OZ Minerals Ltd. | 374,974 | 6,439,078 | ||||||
Shopping Centres Australasia Property Group | 1,066,784 | 2,270,279 | ||||||
47,318,475 | ||||||||
Belgium — 2.4% | ||||||||
D'ieteren Group | 48,491 | 7,576,345 | ||||||
Euronav NV | 284,599 | 3,641,239 | ||||||
11,217,584 | ||||||||
Canada — 10.5% | ||||||||
Brookfield Infrastructure Corp., Class A | 78,847 | 5,562,656 | ||||||
CAE, Inc.(1) | 179,746 | 4,489,209 | ||||||
Canadian Western Bank(2) | 163,278 | 3,911,391 | ||||||
Colliers International Group, Inc. (Toronto) | 19,868 | 2,417,900 | ||||||
Descartes Systems Group, Inc.(1) | 36,638 | 2,173,919 | ||||||
Finning International, Inc. | 122,061 | 3,244,409 | ||||||
Kinaxis, Inc.(1) | 29,599 | 3,287,166 | ||||||
Nuvei Corp.(1) | 71,538 | 3,679,915 | ||||||
SSR Mining, Inc. | 264,499 | 5,139,216 | ||||||
Tricon Residential, Inc. (Toronto) | 475,010 | 5,888,569 | ||||||
Whitecap Resources, Inc.(2) | 994,563 | 8,845,977 | ||||||
48,640,327 | ||||||||
Denmark — 3.2% | ||||||||
ALK-Abello A/S(1) | 186,700 | 3,724,069 | ||||||
Jyske Bank A/S(1) | 107,259 | 6,324,747 | ||||||
Royal Unibrew A/S | 55,961 | 4,910,334 | ||||||
14,959,150 | ||||||||
Finland — 1.8% | ||||||||
Huhtamaki Oyj | 143,759 | 5,540,223 | ||||||
Metso Outotec Oyj | 309,580 | 2,888,600 | ||||||
8,428,823 | ||||||||
France — 3.7% | ||||||||
Alten SA | 17,622 | 2,352,391 | ||||||
Elis SA | 341,387 | 5,424,784 | ||||||
Nexans SA | 53,072 | 5,333,524 | ||||||
SPIE SA | 166,867 | 4,063,490 | ||||||
17,174,189 | ||||||||
Germany — 2.7% | ||||||||
CTS Eventim AG & Co. KGaA(1) | 68,825 | 4,430,814 |
5
Shares | Value | |||||||
Hensoldt AG | 182,079 | $ | 4,439,945 | |||||
K+S AG | 130,723 | 3,676,880 | ||||||
12,547,639 | ||||||||
Ireland — 1.3% | ||||||||
AIB Group PLC | 2,143,757 | 5,740,036 | ||||||
Israel — 1.1% | ||||||||
Nova Ltd.(1) | 48,749 | 5,178,119 | ||||||
Italy — 5.9% | ||||||||
Autogrill SpA(1) | 828,839 | 6,236,435 | ||||||
Italgas SpA | 534,008 | 3,448,415 | ||||||
Leonardo SpA(1) | 546,038 | 5,879,365 | ||||||
MARR SpA | 154,531 | 2,302,081 | ||||||
Sesa SpA | 34,624 | 4,772,861 | ||||||
Unipol Gruppo SpA | 828,715 | 4,434,772 | ||||||
27,073,929 | ||||||||
Japan — 24.9% | ||||||||
Amvis Holdings, Inc. | 126,500 | 4,140,124 | ||||||
Asics Corp. | 147,000 | 2,524,138 | ||||||
BayCurrent Consulting, Inc. | 12,400 | 3,895,861 | ||||||
Fukuoka Financial Group, Inc. | 395,300 | 6,808,557 | ||||||
IHI Corp. | 224,200 | 6,291,111 | ||||||
Invincible Investment Corp. | 12,010 | 3,989,877 | ||||||
Japan Airport Terminal Co. Ltd.(1) | 86,400 | 3,535,113 | ||||||
Japan Elevator Service Holdings Co. Ltd. | 182,300 | 2,150,637 | ||||||
Japan Hotel REIT Investment Corp. | 12,796 | 6,621,613 | ||||||
Jeol Ltd. | 91,800 | 4,434,855 | ||||||
m-up Holdings, Inc. | 289,800 | 2,680,020 | ||||||
MatsukiyoCocokara & Co. | 119,500 | 4,594,468 | ||||||
Menicon Co. Ltd. | 147,900 | 3,074,081 | ||||||
Nagoya Railroad Co. Ltd. | 332,700 | 5,473,723 | ||||||
Nextage Co. Ltd. | 268,800 | 4,247,008 | ||||||
Nippon Gas Co. Ltd. | 417,300 | 6,199,395 | ||||||
Open House Group Co. Ltd. | 65,100 | 2,709,907 | ||||||
Rohto Pharmaceutical Co. Ltd. | 215,800 | 5,525,052 | ||||||
Sanwa Holdings Corp. | 429,400 | 4,113,918 | ||||||
SHO-BOND Holdings Co. Ltd. | 103,900 | 4,649,124 | ||||||
Tokyo Ohka Kogyo Co. Ltd. | 77,000 | 4,378,753 | ||||||
Toyo Suisan Kaisha Ltd. | 125,900 | 4,710,678 | ||||||
Ushio, Inc. | 336,300 | 4,631,189 | ||||||
Visional, Inc.(1) | 87,300 | 4,063,328 | ||||||
West Holdings Corp. | 129,400 | 4,642,547 | ||||||
Zenkoku Hosho Co. Ltd. | 146,000 | 4,845,777 | ||||||
114,930,854 | ||||||||
Netherlands — 5.3% | ||||||||
AMG Advanced Metallurgical Group NV | 103,663 | 3,805,070 | ||||||
Arcadis NV | 59,305 | 2,349,253 | ||||||
ASR Nederland NV | 200,652 | 9,136,201 | ||||||
Basic-Fit NV(1) | 116,651 | 4,890,458 | ||||||
BE Semiconductor Industries NV | 32,304 | 1,975,291 | ||||||
OCI NV(1) | 66,741 | 2,343,507 | ||||||
24,499,780 |
6
Shares | Value | |||||||
New Zealand — 0.5% | ||||||||
Contact Energy Ltd. | 463,425 | $ | 2,246,190 | |||||
Norway — 3.6% | ||||||||
Aker Solutions ASA | 1,484,161 | 5,826,544 | ||||||
Bakkafrost P/F | 44,438 | 2,958,939 | ||||||
Storebrand ASA | 842,341 | 7,565,715 | ||||||
16,351,198 | ||||||||
Singapore — 2.0% | ||||||||
SATS Ltd.(1) | 1,517,700 | 4,829,008 | ||||||
Suntec Real Estate Investment Trust | 1,766,200 | 2,161,353 | ||||||
TDCX, Inc., ADR(1) | 212,662 | 2,167,025 | ||||||
9,157,386 | ||||||||
Spain — 3.6% | ||||||||
Acciona SA | 33,834 | 6,524,516 | ||||||
Banco de Sabadell SA | 6,370,214 | 5,713,701 | ||||||
CIE Automotive SA | 68,364 | 1,745,927 | ||||||
Laboratorios Farmaceuticos Rovi SA | 39,026 | 2,618,618 | ||||||
16,602,762 | ||||||||
Sweden — 6.6% | ||||||||
AddTech AB, B Shares | 253,198 | 4,281,549 | ||||||
Axfood AB(2) | 117,972 | 3,463,458 | ||||||
Axfood AB BTA(2) | 3,299 | 96,613 | ||||||
Fastighets AB Balder, B Shares(1) | 487,248 | 3,525,666 | ||||||
Hexatronic Group AB | 97,484 | 4,434,763 | ||||||
Holmen AB, B Shares | 79,167 | 4,072,487 | ||||||
Lifco AB, B Shares | 95,812 | 1,974,881 | ||||||
Scandic Hotels Group AB(1)(2) | 1,017,853 | 4,185,078 | ||||||
Trelleborg AB, B Shares | 151,352 | 3,534,334 | ||||||
Vitrolife AB | 25,551 | 757,315 | ||||||
30,326,144 | ||||||||
Switzerland — 3.6% | ||||||||
DKSH Holding AG | 86,031 | 7,190,835 | ||||||
PSP Swiss Property AG | 43,087 | 5,134,691 | ||||||
SIG Group AG(1) | 201,052 | 4,394,007 | ||||||
16,719,533 | ||||||||
United Kingdom — 5.8% | ||||||||
Diploma PLC | 109,856 | 3,598,613 | ||||||
Endava PLC, ADR(1) | 30,741 | 3,101,460 | ||||||
Greggs PLC | 39,879 | 1,135,677 | ||||||
JET2 PLC(1) | 84,524 | 1,244,307 | ||||||
Pets at Home Group PLC | 269,940 | 1,179,160 | ||||||
RS GROUP PLC | 345,053 | 4,210,835 | ||||||
Tritax Big Box REIT PLC | 2,986,925 | 7,662,429 | ||||||
Watches of Switzerland Group PLC(1) | 397,981 | 4,719,092 | ||||||
26,851,573 | ||||||||
TOTAL COMMON STOCKS (Cost $445,947,714) | 455,963,691 | |||||||
EXCHANGE-TRADED FUNDS — 0.1% | ||||||||
iShares MSCI EAFE Small-Cap ETF(2) (Cost $468,807) | 7,665 | 475,153 | ||||||
SHORT-TERM INVESTMENTS — 3.0% | ||||||||
Money Market Funds — 1.9% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 960,053 | 960,053 |
7
Shares | Value | |||||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) | 7,926,767 | $ | 7,926,767 | |||||
8,886,820 | ||||||||
Repurchase Agreements — 1.1% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.50% - 4.375%, 2/15/38 - 2/15/45, valued at $467,914), in a joint trading account at 0.74%, dated 5/31/22, due 6/1/22 (Delivery value $458,871) | 458,862 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 4.50%, 5/15/38, valued at $4,692,005), at 0.75%, dated 5/31/22, due 6/1/22 (Delivery value $4,600,096) | 4,600,000 | |||||||
5,058,862 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $13,945,682) | 13,945,682 | |||||||
TOTAL INVESTMENT SECURITIES — 101.9% (Cost $460,362,203) | 470,384,526 | |||||||
OTHER ASSETS AND LIABILITIES — (1.9)% | (8,839,666) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 461,544,860 |
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Industrials | 25.8% | ||||
Financials | 11.8% | ||||
Materials | 10.9% | ||||
Consumer Discretionary | 10.0% | ||||
Real Estate | 9.3% | ||||
Information Technology | 8.6% | ||||
Consumer Staples | 6.7% | ||||
Utilities | 6.1% | ||||
Health Care | 4.2% | ||||
Energy | 4.0% | ||||
Communication Services | 1.4% | ||||
Exchange-Traded Funds | 0.1% | ||||
Short-Term Investments | 3.0% | ||||
Other Assets and Liabilities | (1.9)% |
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
ADR | - | American Depositary Receipt |
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $11,861,400. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $12,589,992, which includes securities collateral of $4,663,225.
See Notes to Financial Statements.
8
Statement of Assets and Liabilities |
MAY 31, 2022 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $452,435,436) — including $11,861,400 of securities on loan | $ | 462,457,759 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $7,926,767) | 7,926,767 | ||||
Total investment securities, at value (cost of $460,362,203) | 470,384,526 | ||||
Foreign currency holdings, at value (cost of $433) | 436 | ||||
Receivable for investments sold | 3,778,477 | ||||
Receivable for capital shares sold | 55,218 | ||||
Dividends and interest receivable | 1,719,160 | ||||
Securities lending receivable | 82,167 | ||||
476,019,984 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 7,926,767 | ||||
Payable for investments purchased | 6,449,684 | ||||
Payable for capital shares redeemed | 195 | ||||
Accrued management fees | 98,478 | ||||
14,475,124 | |||||
Net Assets | $ | 461,544,860 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 485,022,984 | |||
Distributable earnings | (23,478,124) | ||||
$ | 461,544,860 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $82,987,691 | 8,550,402 | $9.71 | ||||||||
G Class, $0.01 Par Value | $378,557,169 | 38,348,041 | $9.87 |
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $616,090) | $ | 4,541,111 | |||
Securities lending, net | 140,843 | ||||
Interest | 5,463 | ||||
4,687,417 | |||||
Expenses: | |||||
Management fees | 2,980,270 | ||||
Directors' fees and expenses | 5,486 | ||||
Other expenses | 6,194 | ||||
2,991,950 | |||||
Fees waived(1) | (2,313,942) | ||||
678,008 | |||||
Net investment income (loss) | 4,009,409 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | (29,192,502) | ||||
Foreign currency translation transactions | (71,317) | ||||
(29,263,819) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | (89,911,115) | ||||
Translation of assets and liabilities in foreign currencies | (53,148) | ||||
(89,964,263) | |||||
Net realized and unrealized gain (loss) | (119,228,082) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (115,218,673) |
(1)Amount consists of $18,639 and $2,295,303 for Investor Class and G Class, respectively.
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2021 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2022 | November 30, 2021 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 4,009,409 | $ | 4,186,134 | ||||
Net realized gain (loss) | (29,263,819) | 108,682,878 | ||||||
Change in net unrealized appreciation (depreciation) | (89,964,263) | (19,599,855) | ||||||
Net increase (decrease) in net assets resulting from operations | (115,218,673) | 93,269,157 | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (18,910,988) | (3,058,614) | ||||||
G Class | (85,753,857) | (15,557,885) | ||||||
Decrease in net assets from distributions | (104,664,845) | (18,616,499) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 144,712,314 | (32,903,513) | ||||||
Net increase (decrease) in net assets | (75,171,204) | 41,749,145 | ||||||
Net Assets | ||||||||
Beginning of period | 536,716,064 | 494,966,919 | ||||||
End of period | $ | 461,544,860 | $ | 536,716,064 |
See Notes to Financial Statements.
11
Notes to Financial Statements |
MAY 31, 2022 (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 Small-Mid Cap Fund (formerly 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 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 (NAV) 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 NAV 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 NAV 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.
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. 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).
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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.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 31, 2022.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 7,913,700 | — | — | — | $ | 7,913,700 | ||||||||||
Exchange-Traded Funds | 13,067 | — | — | — | 13,067 | ||||||||||||
Total Borrowings | $ | 7,926,767 | — | — | — | $ | 7,926,767 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 7,926,767 |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
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, 58% 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. 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. During the period ended May 31, 2022, the investment advisor agreed to waive 0.04% of the fund's management fee. The investment advisor expects this waiver to continue until March 31, 2023 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.
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The annual management fee and the effective annual management fee after waiver for each class for the period ended May 31, 2022 are as follows:
Annual Management Fee | Effective Annual Management Fee After Waiver | |||||||
Investor Class | 1.47% | 1.43% | ||||||
G Class | 1.12% | 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 $86,443 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, 2022 were $346,524,441 and $297,991,858, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2022 | Year ended November 30, 2021 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 120,000,000 | 120,000,000 | ||||||||||||
Sold | 48,639 | $ | 724,732 | 5,229 | $ | 74,661 | ||||||||
Issued in reinvestment of distributions | 1,560,313 | 18,910,988 | 232,594 | 3,058,614 | ||||||||||
Redeemed | (118,129) | (1,760,125) | (615,068) | (8,513,390) | ||||||||||
1,490,823 | 17,875,595 | (377,245) | (5,380,115) | |||||||||||
G Class/Shares Authorized | 300,000,000 | 300,000,000 | ||||||||||||
Sold | 3,409,308 | 42,870,879 | 1,792,308 | 26,639,764 | ||||||||||
Issued in reinvestment of distributions | 7,000,315 | 85,753,857 | 1,173,295 | 15,557,885 | ||||||||||
Redeemed | (150,838) | (1,788,017) | (4,597,000) | (69,721,047) | ||||||||||
10,258,785 | 126,836,719 | (1,631,397) | (27,523,398) | |||||||||||
Net increase (decrease) | 11,749,608 | $ | 144,712,314 | (2,008,642) | $ | (32,903,513) |
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 | |||||||||||
Canada | $ | 14,381,787 | $ | 34,258,540 | — | ||||||
Israel | 5,178,119 | — | — | ||||||||
Singapore | 2,167,025 | 6,990,361 | — | ||||||||
United Kingdom | 3,101,460 | 23,750,113 | — | ||||||||
Other Countries | — | 366,136,286 | — | ||||||||
Exchange-Traded Funds | 475,153 | — | — | ||||||||
Short-Term Investments | 8,886,820 | 5,058,862 | — | ||||||||
$ | 34,190,364 | $ | 436,194,162 | — |
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, war, 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 majority of the fund is owned by a relatively small number of shareholders. To the extent that a large shareholder (including a fund of funds) invests in the fund, the fund may experience relatively large redemptions as such shareholder reallocates its assets. In the event of a large shareholder redemption, 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 | $ | 468,694,249 | |||
Gross tax appreciation of investments | $ | 35,987,808 | |||
Gross tax depreciation of investments | (34,297,531) | ||||
Net tax appreciation (depreciation) of investments | $ | 1,690,277 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the realization to ordinary income for tax purposes of unrealized gains on investments in passive foreign investment companies.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $15.01 | 0.02 | (2.62) | (2.60) | (0.10) | (2.60) | (2.70) | $9.71 | (20.87)% | 1.43%(4) | 1.47%(4) | 0.43%(4) | 0.39%(4) | 60% | $82,988 | ||||||||||||||||||||||||||||||||
2021 | $13.16 | (0.06) | 2.34 | 2.28 | — | (0.43) | (0.43) | $15.01 | 17.70% | 1.44% | 1.48% | (0.39)% | (0.43)% | 113% | $105,938 | ||||||||||||||||||||||||||||||||
2020 | $10.61 | (0.03) | 2.76 | 2.73 | (0.18) | — | (0.18) | $13.16 | 26.24% | 1.47% | 1.48% | (0.25)% | (0.26)% | 131% | $97,901 | ||||||||||||||||||||||||||||||||
2019 | $10.56 | 0.01 | 1.14 | 1.15 | (0.04) | (1.06) | (1.10) | $10.61 | 13.13% | 1.48% | 1.48% | 0.14% | 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% | 1.47% | 0.09% | 0.09% | 140% | $66,042 | ||||||||||||||||||||||||||||||||
2017 | $9.88 | (0.01) | 3.29 | 3.28 | — | — | — | $13.16 | 33.20% | 1.48% | 1.48% | (0.10)% | (0.10)% | 122% | $76,484 | ||||||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $15.34 | 0.11 | (2.67) | (2.56) | (0.31) | (2.60) | (2.91) | $9.87 | (20.35)% | 0.00%(4)(5) | 1.12%(4) | 1.86%(4) | 0.74%(4) | 60% | $378,557 | ||||||||||||||||||||||||||||||||
2021 | $13.36 | 0.16 | 2.35 | 2.51 | (0.10) | (0.43) | (0.53) | $15.34 | 19.45% | 0.01% | 1.13% | 1.04% | (0.08)% | 113% | $430,778 | ||||||||||||||||||||||||||||||||
2020 | $10.77 | 0.13 | 2.80 | 2.93 | (0.34) | — | (0.34) | $13.36 | 28.03% | 0.01% | 1.13% | 1.21% | 0.09% | 131% | $397,066 | ||||||||||||||||||||||||||||||||
2019 | $10.72 | 0.16 | 1.13 | 1.29 | (0.18) | (1.06) | (1.24) | $10.77 | 14.77% | 0.01% | 1.13% | 1.61% | 0.49% | 133% | $239,174 | ||||||||||||||||||||||||||||||||
2018 | $13.25 | 0.20 | (1.76) | (1.56) | (0.20) | (0.77) | (0.97) | $10.72 | (12.95)% | 0.00%(5) | 1.12% | 1.56% | 0.44% | 140% | $140,057 | ||||||||||||||||||||||||||||||||
2017 | $9.89 | 0.06 | 3.32 | 3.38 | (0.02) | — | (0.02) | $13.25 | 34.20% | 0.80% | 1.22% | 0.58% | 0.16% | 122% | $172,954 |
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, 2022 (unaudited).
(4)Annualized.
(5)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 the Program Administrator, including members of 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 certain Fund’s investments is supported by a third-party liquidity assessment vendor.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period January 1, 2021 through December 31, 2021. 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.
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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. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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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. | ||||||||
©2022 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92628 2207 |
![acihorizblkd50.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/acihorizblkd50.jpg)
Semiannual Report | |||||
May 31, 2022 | |||||
International Value Fund | |||||
Investor Class (ACEVX) | |||||
I Class (ACVUX) | |||||
A Class (MEQAX) | |||||
C Class (ACCOX) | |||||
R Class (ACVRX) | |||||
R6 Class (ACVDX) | |||||
G Class (ACAFX) |
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 |
![image26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image26.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2022. 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.
Soaring Prices, Sharp Volatility Sank Stock Returns
Global investors faced an unusual set of challenges in the six-month period. From soaring inflation and rising interest rates to mounting geopolitical unrest and slowing growth, global stocks struggled amid intense volatility.
Inflation was already at multiyear highs when the reporting period began. This was largely due to massive fiscal and monetary support, escalating energy prices, supply chain breakdowns and labor market shortages. Russia’s invasion of Ukraine in February sent commodity prices even higher, exacerbating existing inflationary pressures and further damaging global supply chains.
By period-end, inflation lingered at a 40-year high in the U.S. and the U.K. and a record high in the eurozone. Most emerging markets also grappled with rising inflation. At the same time, global economic growth slowed dramatically, further complicated by COVID-19-related lockdowns that shut down key manufacturing hubs in China.
The Federal Reserve responded to surging inflation in March, launching a rate-hike campaign and ending its bond-buying program. The Bank of England executed a series of rate hikes, while the European Central Bank said it would end its bond buying in the third quarter.
The combination of accelerating inflation, tighter monetary policy, geopolitical strife and slowing economic growth fueled widespread and sharp market volatility. Global stock returns broadly declined for the six-month period. Developed markets stocks generally fared better than emerging markets stocks, while U.S. stocks underperformed other developed markets.
Staying Disciplined in Uncertain Times
We expect market volatility to linger as investors navigate this complex environment of high inflation, rising interest rates and economic uncertainty. In addition, Russia’s invasion of Ukraine complicates a tense geopolitical backdrop. We will continue to monitor this evolving situation and its implications for our clients and investment exposure.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
![image35.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image35.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2022 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 96.8% | ||||
Short-Term Investments | 5.7% | ||||
Other Assets and Liabilities | (2.5)% | ||||
Top Five Countries | % of net assets | ||||
Japan | 21.0% | ||||
France | 16.5% | ||||
United Kingdom | 15.4% | ||||
Germany | 7.7% | ||||
Australia | 6.4% |
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, 2021 to May 31, 2022 (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 12/1/21 | Ending Account Value 5/31/22 | Expenses Paid During Period(1) 12/1/21 - 5/31/22 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $980.20 | $6.02 | 1.22% | ||||||||||
I Class | $1,000 | $981.00 | $5.04 | 1.02% | ||||||||||
A Class | $1,000 | $978.90 | $7.25 | 1.47% | ||||||||||
C Class | $1,000 | $975.70 | $10.94 | 2.22% | ||||||||||
R Class | $1,000 | $977.30 | $8.48 | 1.72% | ||||||||||
R6 Class | $1,000 | $981.40 | $4.30 | 0.87% | ||||||||||
G Class | $1,000 | $969.20 | $0.08(2) | 0.05% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,018.85 | $6.14 | 1.22% | ||||||||||
I Class | $1,000 | $1,019.85 | $5.14 | 1.02% | ||||||||||
A Class | $1,000 | $1,017.60 | $7.39 | 1.47% | ||||||||||
C Class | $1,000 | $1,013.86 | $11.15 | 2.22% | ||||||||||
R Class | $1,000 | $1,016.36 | $8.65 | 1.72% | ||||||||||
R6 Class | $1,000 | $1,020.59 | $4.38 | 0.87% | ||||||||||
G Class | $1,000 | $1,024.68 | $0.25 | 0.05% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
(2)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 61, the number of days in the period from April 1, 2022 (commencement of sale) through May 31, 2022, divided by 365, to reflect the period. Had the class been available for the full period, the expenses paid during the period would have been higher.
5
Schedule of Investments |
MAY 31, 2022 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 96.8% | ||||||||
Australia — 6.4% | ||||||||
Aurizon Holdings Ltd. | 2,467,334 | $ | 7,107,699 | |||||
Australia & New Zealand Banking Group Ltd.(1) | 789,063 | 14,144,857 | ||||||
BHP Group Ltd. | 858,665 | 26,958,625 | ||||||
Fortescue Metals Group Ltd. | 957,169 | 13,818,695 | ||||||
IGO Ltd. | 399,669 | 3,583,718 | ||||||
Origin Energy Ltd. | 1,056,210 | 5,174,716 | ||||||
Sonic Healthcare Ltd. | 507,429 | 13,318,521 | ||||||
Woodside Energy Group Ltd. | 155,161 | 3,273,329 | ||||||
87,380,160 | ||||||||
Canada — 2.0% | ||||||||
Boralex, Inc., A Shares | 180,442 | 5,508,057 | ||||||
Cenovus Energy, Inc. | 246,470 | 5,713,326 | ||||||
Manulife Financial Corp.(1) | 612,761 | 11,350,745 | ||||||
TFI International, Inc. | 57,497 | 4,721,677 | ||||||
27,293,805 | ||||||||
Denmark — 1.1% | ||||||||
AP Moller - Maersk A/S, B Shares | 5,124 | 15,015,277 | ||||||
Finland — 0.5% | ||||||||
Nokia Oyj | 1,297,915 | 6,523,217 | ||||||
France — 16.5% | ||||||||
AXA SA | 264,534 | 6,693,200 | ||||||
BNP Paribas SA(1) | 396,472 | 22,692,305 | ||||||
Cie de Saint-Gobain | 257,896 | 15,286,478 | ||||||
Credit Agricole SA(1) | 1,366,373 | 15,170,702 | ||||||
Danone SA(1) | 266,317 | 15,669,419 | ||||||
Engie SA | 642,157 | 8,631,929 | ||||||
Euroapi SA(1)(2) | 1,165 | 16,934 | ||||||
L'Oreal SA | 13,142 | 4,641,905 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 10,127 | 6,538,255 | ||||||
Orange SA(1) | 1,458,155 | 18,253,880 | ||||||
Pernod Ricard SA | 64,820 | 12,729,832 | ||||||
Publicis Groupe SA | 217,584 | 11,918,485 | ||||||
Sanofi(1) | 26,818 | 2,869,737 | ||||||
Societe Generale SA | 579,040 | 15,603,692 | ||||||
Sodexo SA | 120,481 | 9,001,483 | ||||||
Thales SA | 101,620 | 12,409,268 | ||||||
TotalEnergies SE | 560,729 | 33,185,664 | ||||||
Vinci SA | 119,249 | 11,507,540 | ||||||
222,820,708 | ||||||||
Germany — 7.7% | ||||||||
Allianz SE | 115,686 | 24,284,078 | ||||||
Covestro AG | 179,526 | 8,229,135 | ||||||
Deutsche Post AG | 264,061 | 10,927,802 | ||||||
HeidelbergCement AG | 63,322 | 3,698,207 | ||||||
Henkel AG & Co. KGaA, Preference Shares | 113,233 | 7,752,003 | ||||||
Hensoldt AG | 120,765 | 2,944,820 |
6
Shares | Value | |||||||
Mercedes-Benz Group AG | 84,769 | $ | 6,040,588 | |||||
SAP SE | 54,898 | 5,503,358 | ||||||
Siemens AG | 87,804 | 11,590,385 | ||||||
Telefonica Deutschland Holding AG | 1,135,938 | 3,615,316 | ||||||
Volkswagen AG, Preference Shares | 118,243 | 19,734,436 | ||||||
104,320,128 | ||||||||
Hong Kong — 4.1% | ||||||||
CK Asset Holdings Ltd. | 2,048,000 | 13,353,388 | ||||||
CK Hutchison Holdings Ltd. | 1,692,500 | 11,989,029 | ||||||
Henderson Land Development Co. Ltd. | 1,017,000 | 4,309,370 | ||||||
Hongkong Land Holdings Ltd. | 887,100 | 4,103,968 | ||||||
Power Assets Holdings Ltd. | 1,740,000 | 11,360,801 | ||||||
Sun Hung Kai Properties Ltd. | 836,500 | 10,227,103 | ||||||
55,343,659 | ||||||||
Ireland — 0.2% | ||||||||
CRH PLC | 62,590 | 2,583,270 | ||||||
Israel — 0.6% | ||||||||
Bank Leumi Le-Israel BM | 876,660 | 8,728,561 | ||||||
Italy — 3.0% | ||||||||
Assicurazioni Generali SpA(1) | 626,258 | 11,398,706 | ||||||
Enel SpA | 1,868,454 | 12,139,582 | ||||||
Intesa Sanpaolo SpA | 7,797,271 | 17,029,901 | ||||||
40,568,189 | ||||||||
Japan — 21.0% | ||||||||
Aisin Corp. | 322,600 | 10,561,797 | ||||||
Asahi Group Holdings Ltd. | 189,000 | 6,332,769 | ||||||
Astellas Pharma, Inc. | 470,100 | 7,507,926 | ||||||
Brother Industries Ltd. | 451,400 | 8,307,925 | ||||||
Canon, Inc. | 609,300 | 15,473,669 | ||||||
Chubu Electric Power Co., Inc. | 398,500 | 4,009,538 | ||||||
Daiwa House Industry Co. Ltd. | 225,600 | 5,433,384 | ||||||
Hitachi Ltd. | 142,200 | 7,378,258 | ||||||
INPEX Corp.(1) | 403,800 | 5,181,167 | ||||||
Japan Post Bank Co. Ltd. | 705,300 | 5,433,714 | ||||||
Japan Post Insurance Co. Ltd. | 191,700 | 3,191,789 | ||||||
KDDI Corp. | 82,600 | 2,881,591 | ||||||
Kirin Holdings Co. Ltd. | 293,700 | 4,543,092 | ||||||
Marubeni Corp. | 1,165,800 | 12,221,447 | ||||||
Mitsubishi Electric Corp. | 396,800 | 4,347,774 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 4,761,800 | 27,089,888 | ||||||
Mizuho Financial Group, Inc. | 572,500 | 6,808,838 | ||||||
MS&AD Insurance Group Holdings, Inc. | 294,200 | 9,360,369 | ||||||
NEC Corp. | 194,100 | 7,796,588 | ||||||
Nintendo Co. Ltd. | 25,500 | 11,385,454 | ||||||
Nippon Telegraph & Telephone Corp. | 191,700 | 5,856,896 | ||||||
Nippon Yusen KK | 173,100 | 14,309,439 | ||||||
Otsuka Holdings Co. Ltd. | 142,200 | 4,737,758 | ||||||
Sompo Holdings, Inc. | 378,100 | 17,227,688 | ||||||
Sumitomo Chemical Co. Ltd. | 826,800 | 3,417,630 | ||||||
Sumitomo Corp. | 868,000 | 12,419,426 | ||||||
Takeda Pharmaceutical Co. Ltd. | 597,100 | 17,158,117 |
7
Shares | Value | |||||||
Toyota Motor Corp. | 2,609,100 | $ | 43,406,729 | |||||
283,780,660 | ||||||||
Netherlands — 4.2% | ||||||||
Coca-Cola Europacific Partners PLC | 206,318 | 10,961,675 | ||||||
ING Groep NV | 1,172,117 | 13,253,893 | ||||||
Koninklijke Ahold Delhaize NV | 634,023 | 17,483,386 | ||||||
NN Group NV | 197,332 | 9,780,086 | ||||||
Randstad NV | 85,887 | 4,832,348 | ||||||
56,311,388 | ||||||||
Norway — 0.9% | ||||||||
Aker BP ASA(1) | 76,054 | 3,276,589 | ||||||
Yara International ASA | 161,654 | 8,381,627 | ||||||
11,658,216 | ||||||||
Singapore — 0.7% | ||||||||
Singapore Telecommunications Ltd. | 5,401,100 | 10,179,630 | ||||||
Spain — 2.3% | ||||||||
Banco Santander SA | 2,499,284 | 8,107,215 | ||||||
CaixaBank SA | 636,394 | 2,303,535 | ||||||
Repsol SA | 443,505 | 7,116,638 | ||||||
Telefonica SA | 2,539,261 | 13,806,519 | ||||||
31,333,907 | ||||||||
Sweden — 2.5% | ||||||||
H & M Hennes & Mauritz AB, B Shares(1) | 456,235 | 6,297,376 | ||||||
Investor AB, B Shares | 430,781 | 8,080,169 | ||||||
Nordea Bank Abp | 1,245,486 | 12,677,665 | ||||||
Skandinaviska Enskilda Banken AB, A Shares | 645,098 | 7,134,790 | ||||||
34,190,000 | ||||||||
Switzerland — 4.0% | ||||||||
Holcim AG(2) | 151,362 | 7,504,786 | ||||||
Novartis AG | 403,265 | 36,632,506 | ||||||
Roche Holding AG | 29,377 | 10,011,415 | ||||||
54,148,707 | ||||||||
United Kingdom — 15.4% | ||||||||
3i Group PLC | 514,536 | 8,228,454 | ||||||
Aviva PLC(2) | 2,386,980 | 12,935,308 | ||||||
Barclays PLC | 3,298,589 | 7,031,251 | ||||||
BP PLC | 5,835,143 | 31,711,496 | ||||||
Glencore PLC(2) | 2,097,726 | 13,835,717 | ||||||
GSK PLC | 905,134 | 19,732,257 | ||||||
HSBC Holdings PLC | 2,128,492 | 14,252,897 | ||||||
Kingfisher PLC | 2,130,022 | 7,073,825 | ||||||
Melrose Industries PLC | 2,322,839 | 3,963,831 | ||||||
Natwest Group PLC | 2,065,548 | 5,948,288 | ||||||
Rio Tinto PLC | 339,135 | 24,607,094 | ||||||
Shell PLC | 725,999 | 21,472,113 | ||||||
Standard Chartered PLC | 761,716 | 6,054,823 | ||||||
Unilever PLC | 246,133 | 11,891,043 | ||||||
Vodafone Group PLC | 12,273,466 | 20,207,324 | ||||||
208,945,721 | ||||||||
United States — 3.7% | ||||||||
Abbott Laboratories | 76,201 | 8,950,569 | ||||||
AbbVie, Inc. | 38,242 | 5,635,724 |
8
Shares | Value | |||||||
Devon Energy Corp. | 113,910 | $ | 8,531,859 | |||||
General Mills, Inc. | 138,764 | 9,692,665 | ||||||
Johnson & Johnson | 51,875 | 9,313,119 | ||||||
Pioneer Natural Resources Co. | 26,594 | 7,391,537 | ||||||
49,515,473 | ||||||||
TOTAL COMMON STOCKS (Cost $1,285,288,678) | 1,310,640,676 | |||||||
SHORT-TERM INVESTMENTS — 5.7% | ||||||||
Money Market Funds — 4.0% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 4,408,458 | 4,408,457 | ||||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) | 49,690,787 | 49,690,787 | ||||||
54,099,244 | ||||||||
Repurchase Agreements — 1.7% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.50% - 4.375%, 2/15/38 - 2/15/45, valued at $2,148,608), in a joint trading account at 0.74%, dated 5/31/22, due 6/1/22 (Delivery value $2,107,087) | 2,107,044 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 4.375%, 2/15/38, valued at $21,543,456), at 0.75%, dated 5/31/22, due 6/1/22 (Delivery value $21,121,440) | 21,121,000 | |||||||
23,228,044 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $77,327,288) | 77,327,288 | |||||||
TOTAL INVESTMENT SECURITIES — 102.5% (Cost $1,362,615,966) | 1,387,967,964 | |||||||
OTHER ASSETS AND LIABILITIES — (2.5)% | (33,952,655) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 1,354,015,309 |
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Financials | 24.4% | ||||
Industrials | 12.0% | ||||
Health Care | 10.2% | ||||
Energy | 9.4% | ||||
Materials | 8.7% | ||||
Consumer Discretionary | 8.1% | ||||
Consumer Staples | 7.5% | ||||
Communication Services | 7.1% | ||||
Utilities | 3.4% | ||||
Information Technology | 3.2% | ||||
Real Estate | 2.8% | ||||
Short-Term Investments | 5.7% | ||||
Other Assets and Liabilities | (2.5)% |
9
NOTES TO SCHEDULE OF INVESTMENTS |
(1)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $63,132,406. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(2)Non-income producing.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $66,275,392, which includes securities collateral of $16,584,605.
See Notes to Financial Statements.
10
Statement of Assets and Liabilities |
MAY 31, 2022 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $1,312,925,179) — including $63,132,406 of securities on loan | $ | 1,338,277,177 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $49,690,787) | 49,690,787 | ||||
Total investment securities, at value (cost of $1,362,615,966) | 1,387,967,964 | ||||
Cash | 267,396 | ||||
Receivable for investments sold | 13,357,683 | ||||
Receivable for capital shares sold | 96,671 | ||||
Dividends and interest receivable | 16,669,785 | ||||
Securities lending receivable | 233,258 | ||||
1,418,592,757 | |||||
Liabilities | |||||
Foreign currency overdraft payable, at value (cost of $13,505) | 13,533 | ||||
Payable for collateral received for securities on loan | 49,690,787 | ||||
Payable for investments purchased | 10,112,527 | ||||
Payable for capital shares redeemed | 4,399,846 | ||||
Accrued management fees | 244,059 | ||||
Distribution and service fees payable | 1,944 | ||||
Accrued foreign withholding tax reclaim expenses | 114,752 | ||||
64,577,448 | |||||
Net Assets | $ | 1,354,015,309 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 1,324,249,902 | |||
Distributable earnings | 29,765,407 | ||||
$ | 1,354,015,309 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $221,201,601 | 28,254,955 | $7.83 | ||||||||
I Class, $0.01 Par Value | $47,191,969 | 6,045,329 | $7.81 | ||||||||
A Class, $0.01 Par Value | $5,842,893 | 740,890 | $7.89* | ||||||||
C Class, $0.01 Par Value | $513,973 | 65,260 | $7.88 | ||||||||
R Class, $0.01 Par Value | $769,782 | 97,932 | $7.86 | ||||||||
R6 Class, $0.01 Par Value | $779,621 | 99,960 | $7.80 | ||||||||
G Class, $0.01 Par Value | $1,077,715,470 | 137,855,367 | $7.82 |
*Maximum offering price $8.37 (net asset value divided by 0.9425).
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $2,172,811) | $ | 22,547,501 | |||
Securities lending, net | 220,923 | ||||
Interest | 86,169 | ||||
22,854,593 | |||||
Expenses: | |||||
Management fees | 1,377,697 | ||||
Distribution and service fees: | |||||
A Class | 7,836 | ||||
C Class | 3,156 | ||||
R Class | 1,996 | ||||
Directors' fees and expenses | 3,174 | ||||
Foreign withholding tax reclaim expenses | 151,575 | ||||
Other expenses | 3,260 | ||||
1,548,694 | |||||
Fees waived - G Class | (801,322) | ||||
747,372 | |||||
Net investment income (loss) | 22,107,221 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | (10,621,653) | ||||
Futures contract transactions | 75,706 | ||||
Foreign currency translation transactions | (200,175) | ||||
(10,746,122) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | (7,198,593) | ||||
Translation of assets and liabilities in foreign currencies | (14,787) | ||||
(7,213,380) | |||||
Net realized and unrealized gain (loss) | (17,959,502) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 4,147,719 |
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2021 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2022 | November 30, 2021 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 22,107,221 | $ | 1,730,915 | ||||
Net realized gain (loss) | (10,746,122) | 4,241,108 | ||||||
Change in net unrealized appreciation (depreciation) | (7,213,380) | (1,842,188) | ||||||
Net increase (decrease) in net assets resulting from operations | 4,147,719 | 4,129,835 | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (699,499) | (310,577) | ||||||
I Class | (2,345,967) | (835,020) | ||||||
A Class | (279,208) | (125,340) | ||||||
C Class | (24,071) | (8,358) | ||||||
R Class | (35,572) | (14,024) | ||||||
R6 Class | (40,515) | (25,537) | ||||||
G Class | (34) | — | ||||||
Decrease in net assets from distributions | (3,424,866) | (1,318,856) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 1,282,802,365 | 16,171,205 | ||||||
Net increase (decrease) in net assets | 1,283,525,218 | 18,982,184 | ||||||
Net Assets | ||||||||
Beginning of period | 70,490,091 | 51,507,907 | ||||||
End of period | $ | 1,354,015,309 | $ | 70,490,091 |
See Notes to Financial Statements.
13
Notes to Financial Statements |
MAY 31, 2022 (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, 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, 2022.
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 (NAV) 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 NAV 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.
14
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV 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.
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.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 31, 2022.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 49,690,787 | — | — | — | $ | 49,690,787 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 49,690,787 |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
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, 57% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
16
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 | ||||||||||||||
1.10% | 0.90% | 1.10% | 1.10% | 1.10% | 0.75% | 0.00%(1) |
(1)Annual management fee before waiver was 0.75%.
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, 2022 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.
Foreign Withholding Tax Reclaim Expenses — The fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The fund may incur expenses in association with recovery of such taxes. The impact of foreign withholding tax reclaim expenses to the annualized ratio of operating expenses to average net assets was 0.12% for the Investor Class, I Class, A Class, C Class, R Class and R6 Class, and 0.05% for the G Class, for the period ended May 31, 2022.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $3,601,615 and $173,836, respectively. The effect of interfund transactions on the Statement of Operations was $(16,699) 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, 2022 were $462,125,098 and $440,381,152, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2022(1) | Year ended November 30, 2021 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 280,000,000 | 40,000,000 | ||||||||||||
Sold | 377,911 | $ | 3,161,318 | 557,197 | $ | 4,873,094 | ||||||||
Issued in connection with reorganization (Note 10) | 26,602,023 | 207,432,134 | — | — | ||||||||||
Issued in reinvestment of distributions | 82,397 | 677,909 | 35,319 | 300,929 | ||||||||||
Redeemed | (578,455) | (4,597,779) | (436,726) | (3,831,229) | ||||||||||
26,483,876 | 206,673,582 | 155,790 | 1,342,794 | |||||||||||
I Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||
Sold | 760,225 | 6,272,178 | 2,185,152 | 19,237,408 | ||||||||||
Issued in reinvestment of distributions | 285,829 | 2,345,524 | 98,238 | 835,020 | ||||||||||
Redeemed | (605,209) | (4,867,643) | (507,317) | (4,453,793) | ||||||||||
440,845 | 3,750,059 | 1,776,073 | 15,618,635 | |||||||||||
A Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||
Sold | 9,941 | 81,258 | 70,665 | 618,269 | ||||||||||
Issued in reinvestment of distributions | 33,420 | 277,341 | 14,498 | 124,535 | ||||||||||
Redeemed | (63,537) | (508,387) | (109,426) | (962,671) | ||||||||||
(20,176) | (149,788) | (24,263) | (219,867) | |||||||||||
C Class/Shares Authorized | 25,000,000 | 30,000,000 | ||||||||||||
Sold | 842 | 6,926 | 11,368 | 97,302 | ||||||||||
Issued in reinvestment of distributions | 2,898 | 24,071 | 974 | 8,358 | ||||||||||
Redeemed | (26,201) | (217,882) | (43,057) | (372,648) | ||||||||||
(22,461) | (186,885) | (30,715) | (266,988) | |||||||||||
R Class/Shares Authorized | 25,000,000 | 30,000,000 | ||||||||||||
Sold | 16,234 | 133,365 | 26,160 | 231,046 | ||||||||||
Issued in reinvestment of distributions | 4,288 | 35,501 | 1,328 | 11,483 | ||||||||||
Redeemed | (29,181) | (247,000) | (29,232) | (254,388) | ||||||||||
(8,659) | (78,134) | (1,744) | (11,859) | |||||||||||
R6 Class/Shares Authorized | 40,000,000 | 45,000,000 | ||||||||||||
Sold | 19,112 | 155,122 | 164,202 | 1,458,253 | ||||||||||
Issued in reinvestment of distributions | 4,941 | 40,515 | 3,008 | 25,537 | ||||||||||
Redeemed | (18,140) | (150,544) | (204,652) | (1,775,300) | ||||||||||
5,913 | 45,093 | (37,442) | (291,510) | |||||||||||
G Class/Shares Authorized | 925,000,000 | N/A | ||||||||||||
Sold | 495,723 | 3,786,553 | ||||||||||||
Issued in connection with reorganization (Note 10) | 138,420,662 | 1,077,211,960 | ||||||||||||
Issued in reinvestment of distributions | 4 | 34 | ||||||||||||
Redeemed | (1,061,022) | (8,250,109) | ||||||||||||
137,855,367 | 1,072,748,438 | |||||||||||||
Net increase (decrease) | 164,734,705 | $ | 1,282,802,365 | 1,837,699 | $ | 16,171,205 |
(1)April 1, 2022 (commencement of sale) through May 31, 2022 for the G Class.
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 | $ | 60,477,148 | $ | 1,250,163,528 | — | ||||||
Short-Term Investments | 54,099,244 | 23,228,044 | — | ||||||||
$ | 114,576,392 | $ | 1,273,391,572 | — |
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 $2,089,620 futures contracts purchased.
At period end, the fund did not have any derivative instruments disclosed on the Statement of Assets and Liabilities. For the six months ended May 31, 2022, the effect of equity price risk derivative instruments on the Statement of Operations was $75,706 in net realized gain (loss) on futures contract transactions.
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, war, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
19
The majority of the fund is owned by a relatively small number of shareholders. To the extent that a large shareholder (including a fund of funds) invests in the fund, the fund may experience relatively large redemptions as such shareholder reallocates its assets. In the event of a large shareholder redemption, 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 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.
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 | $ | 1,368,511,083 | |||
Gross tax appreciation of investments | $ | 74,726,389 | |||
Gross tax depreciation of investments | (55,269,508) | ||||
Net tax appreciation (depreciation) of investments | $ | 19,456,881 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2021, the fund had accumulated short-term capital losses of $(3,138,635) and accumulated long-term capital losses of $(1,830,746), 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.
10. Reorganization
On December 2, 2021, the Board of Directors approved an agreement and plan of reorganization (the reorganization), whereby the net assets of NT International Value Fund, one fund in a series issued by the corporation, were transferred to International Value Fund in exchange for shares of International Value 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 Value Fund survived after the reorganization. The reorganization was effective at the close of the NYSE on April 22, 2022.
The reorganization was accomplished by a tax-free exchange of shares. On April 22, 2022, NT International Value Fund exchanged its shares for shares of International Value Fund as follows:
Original Fund/Class | Shares Exchanged | New Fund/Class | Shares Received | ||||||||
NT International Value Fund – Investor Class | 23,686,733 | International Value Fund – Investor Class | 26,602,023 | ||||||||
NT International Value Fund – G Class | 122,935,246 | International Value Fund – G Class | 138,420,662 |
The net assets of NT International Value Fund and International Value Fund immediately before the reorganization were $1,284,644,094 and $71,057,510, respectively. NT International Value Fund's unrealized appreciation of $29,633,766 was combined with that of International Value Fund. Immediately after the reorganization, the combined net assets were $1,355,701,604.
20
Assuming the reorganization had been completed on December 1, 2021, the beginning of the annual reporting period, the pro forma results of operations for the period ended May 31, 2022 are as follows:
Net investment income (loss) | $ | 43,411,928 | |||
Net realized and unrealized gain (loss) | (63,338,659) | ||||
Net increase (decrease) in net assets resulting from operations | $ | (19,926,731) |
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 NT International Value Fund that have been included in the fund’s Statement of Operations since April 22, 2022.
21
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 | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $8.37 | 0.22 | (0.37) | (0.15) | (0.39) | $7.83 | (1.98)% | 1.22%(4) | 1.22%(4) | 5.55%(4) | 5.55%(4) | 105% | $221,202 | ||||||||||||||||||||||||||||
2021 | $7.82 | 0.23 | 0.50 | 0.73 | (0.18) | $8.37 | 9.30% | 1.10% | 1.10% | 2.57% | 2.57% | 124% | $14,827 | ||||||||||||||||||||||||||||
2020 | $7.57 | 0.15 | 0.33 | 0.48 | (0.23) | $7.82 | 6.69% | 1.21% | 1.22% | 2.16% | 2.15% | 91% | $12,633 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $8.36 | 0.23 | (0.37) | (0.14) | (0.41) | $7.81 | (1.90)% | 1.02%(4) | 1.02%(4) | 5.75%(4) | 5.75%(4) | 105% | $47,192 | ||||||||||||||||||||||||||||
2021 | $7.81 | 0.24 | 0.51 | 0.75 | (0.20) | $8.36 | 9.54% | 0.90% | 0.90% | 2.77% | 2.77% | 124% | $46,842 | ||||||||||||||||||||||||||||
2020 | $7.57 | 0.16 | 0.33 | 0.49 | (0.25) | $7.81 | 6.93% | 1.01% | 1.02% | 2.36% | 2.35% | 91% | $29,898 | ||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $8.42 | 0.21 | (0.37) | (0.16) | (0.37) | $7.89 | (2.11)% | 1.47%(4) | 1.47%(4) | 5.30%(4) | 5.30%(4) | 105% | $5,843 | ||||||||||||||||||||||||||||
2021 | $7.86 | 0.20 | 0.52 | 0.72 | (0.16) | $8.42 | 9.10% | 1.35% | 1.35% | 2.32% | 2.32% | 124% | $6,407 | ||||||||||||||||||||||||||||
2020 | $7.60 | 0.13 | 0.33 | 0.46 | (0.20) | $7.86 | 6.32% | 1.46% | 1.47% | 1.91% | 1.90% | 91% | $6,176 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $8.37 | 0.16 | (0.35) | (0.19) | (0.30) | $7.88 | (2.43)% | 2.22%(4) | 2.22%(4) | 4.55%(4) | 4.55%(4) | 105% | $514 | ||||||||||||||||||||||||||||
2021 | $7.82 | 0.12 | 0.52 | 0.64 | (0.09) | $8.37 | 8.19% | 2.10% | 2.10% | 1.57% | 1.57% | 124% | $734 | ||||||||||||||||||||||||||||
2020 | $7.51 | 0.07 | 0.34 | 0.41 | (0.10) | $7.82 | 5.65% | 2.21% | 2.22% | 1.16% | 1.15% | 91% | $926 | ||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $8.38 | 0.19 | (0.37) | (0.18) | (0.34) | $7.86 | (2.27)% | 1.72%(4) | 1.72%(4) | 5.05%(4) | 5.05%(4) | 105% | $770 | ||||||||||||||||||||||||||||
2021 | $7.83 | 0.18 | 0.51 | 0.69 | (0.14) | $8.38 | 8.73% | 1.60% | 1.60% | 2.07% | 2.07% | 124% | $893 | ||||||||||||||||||||||||||||
2020 | $7.55 | 0.12 | 0.33 | 0.45 | (0.17) | $7.83 | 6.16% | 1.71% | 1.72% | 1.66% | 1.65% | 91% | $848 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||
2022(3) | $8.36 | 0.24 | (0.38) | (0.14) | (0.42) | $7.80 | (1.86)% | 0.87%(4) | 0.87%(4) | 5.90%(4) | 5.90%(4) | 105% | $780 | ||||||||||||||||||||||||||||
2021 | $7.81 | 0.27 | 0.49 | 0.76 | (0.21) | $8.36 | 9.71% | 0.75% | 0.75% | 2.92% | 2.92% | 124% | $786 | ||||||||||||||||||||||||||||
2020 | $7.58 | 0.18 | 0.32 | 0.50 | (0.27) | $7.81 | 7.08% | 0.86% | 0.87% | 2.51% | 2.50% | 91% | $1,027 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||
2022(5) | $8.18 | 0.14 | (0.39) | (0.25) | (0.11) | $7.82 | (3.08)% | 0.05%(4) | 0.80%(4) | 11.39%(4) | 10.64%(4) | 105%(6) | $1,077,715 |
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, 2022 (unaudited).
(4)Annualized.
(5)April 1, 2022 (commencement of sale) through May 31, 2022 (unaudited).
(6)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the six months ended May 31, 2022.
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 the Program Administrator, including members of 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 certain Fund’s investments is supported by a third-party liquidity assessment vendor.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period January 1, 2021 through December 31, 2021. 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.
26
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. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
27
Notes |
28
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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. | ||||||||
©2022 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92632 2207 |
![acihorizblkd50.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/acihorizblkd50.jpg)
Semiannual Report | |||||
May 31, 2022 | |||||
Non-U.S. Intrinsic Value Fund | |||||
Investor Class (ANTUX) | |||||
I Class (ANVHX) | |||||
A Class (ANVLX) | |||||
R Class (ANVRX) | |||||
R6 Class (ANVMX) | |||||
G Class (ANTGX) |
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 |
![image26.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image26.jpg)
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2022. 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.
Soaring Prices, Sharp Volatility Sank Stock Returns
Global investors faced an unusual set of challenges in the six-month period. From soaring inflation and rising interest rates to mounting geopolitical unrest and slowing growth, global stocks struggled amid intense volatility.
Inflation was already at multiyear highs when the reporting period began. This was largely due to massive fiscal and monetary support, escalating energy prices, supply chain breakdowns and labor market shortages. Russia’s invasion of Ukraine in February sent commodity prices even higher, exacerbating existing inflationary pressures and further damaging global supply chains.
By period-end, inflation lingered at a 40-year high in the U.S. and the U.K. and a record high in the eurozone. Most emerging markets also grappled with rising inflation. At the same time, global economic growth slowed dramatically, further complicated by COVID-19-related lockdowns that shut down key manufacturing hubs in China.
The Federal Reserve responded to surging inflation in March, launching a rate-hike campaign and ending its bond-buying program. The Bank of England executed a series of rate hikes, while the European Central Bank said it would end its bond buying in the third quarter.
The combination of accelerating inflation, tighter monetary policy, geopolitical strife and slowing economic growth fueled widespread and sharp market volatility. Global stock returns broadly declined for the six-month period. Developed markets stocks generally fared better than emerging markets stocks, while U.S. stocks underperformed other developed markets.
Staying Disciplined in Uncertain Times
We expect market volatility to linger as investors navigate this complex environment of high inflation, rising interest rates and economic uncertainty. In addition, Russia’s invasion of Ukraine complicates a tense geopolitical backdrop. We will continue to monitor this evolving situation and its implications for our clients and investment exposure.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
![image35.jpg](https://capedge.com/proxy/N-CSRS/0000872825-22-000090/image35.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2022 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 93.8% | ||||
Exchange-Traded Funds | 2.9% | ||||
Short-Term Investments | 2.3% | ||||
Other Assets and Liabilities | 1.0% | ||||
Top Five Countries* | % of net assets | ||||
United Kingdom | 22.4% | ||||
Germany | 13.6% | ||||
Japan | 12.8% | ||||
France | 12.5% | ||||
China | 11.2% |
*Exposure indicated excludes Exchange-Traded Funds. The Schedule of Investments provides additional information on the fund's portfolio holdings.
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, 2021 to May 31, 2022.
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 12/1/21 | Ending Account Value 5/31/22 | Expenses Paid During Period(1) 12/1/21 - 5/31/22 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $994.70 | $5.72 | 1.15% | ||||||||||
I Class | $1,000 | $994.70 | $4.72 | 0.95% | ||||||||||
A Class | $1,000 | $992.20 | $6.95 | 1.40% | ||||||||||
R Class | $1,000 | $991.70 | $8.19 | 1.65% | ||||||||||
R6 Class | $1,000 | $996.20 | $3.98 | 0.80% | ||||||||||
G Class | $1,000 | $1,000.10 | $0.00 | 0.00%(2) | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,019.20 | $5.79 | 1.15% | ||||||||||
I Class | $1,000 | $1,020.20 | $4.78 | 0.95% | ||||||||||
A Class | $1,000 | $1,017.95 | $7.04 | 1.40% | ||||||||||
R Class | $1,000 | $1,016.70 | $8.30 | 1.65% | ||||||||||
R6 Class | $1,000 | $1,020.94 | $4.03 | 0.80% | ||||||||||
G Class | $1,000 | $1,024.93 | $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 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
(2)Other expenses, which include directors' fees and expenses, did not exceed 0.005%.
5
Schedule of Investments |
MAY 31, 2022 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 93.8% | ||||||||
Brazil — 5.7% | ||||||||
Banco Bradesco SA | 5,092,426 | $ | 17,937,152 | |||||
Banco do Brasil SA | 2,296,000 | 17,657,636 | ||||||
35,594,788 | ||||||||
Canada — 3.3% | ||||||||
ERO Copper Corp.(1) | 623,733 | 7,737,179 | ||||||
Linamar Corp. | 293,470 | 12,930,453 | ||||||
20,667,632 | ||||||||
China ��� 11.2% | ||||||||
Alibaba Group Holding Ltd.(1) | 1,359,900 | 16,332,707 | ||||||
Autohome, Inc., ADR | 247,045 | 8,977,615 | ||||||
Baidu, Inc., Class A(1) | 944,150 | 17,259,580 | ||||||
JD.com, Inc., Class A | 330,214 | 9,275,831 | ||||||
Tencent Holdings Ltd. | 410,300 | 18,758,245 | ||||||
70,603,978 | ||||||||
France — 12.5% | ||||||||
Atos SE(1) | 123,112 | 3,240,858 | ||||||
BNP Paribas SA | 363,347 | 20,796,377 | ||||||
Eiffage SA | 62,212 | 6,151,146 | ||||||
Euroapi SA(1) | 10,218 | 148,527 | ||||||
Publicis Groupe SA | 255,244 | 13,981,367 | ||||||
Sanofi | 235,030 | 25,150,058 | ||||||
Sanofi, ADR | 165,718 | 8,824,484 | ||||||
78,292,817 | ||||||||
Germany — 13.6% | ||||||||
Bayerische Motoren Werke AG | 380,423 | 33,050,690 | ||||||
Continental AG | 291,179 | 22,372,250 | ||||||
Mercedes-Benz Group AG | 418,678 | 29,834,744 | ||||||
85,257,684 | ||||||||
Italy — 1.7% | ||||||||
UniCredit SpA | 892,849 | 10,468,752 | ||||||
Japan — 12.8% | ||||||||
Alfresa Holdings Corp. | 458,800 | 6,023,612 | ||||||
Haseko Corp. | 439,700 | 5,245,225 | ||||||
Hazama Ando Corp. | 375,600 | 2,297,214 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 2,507,400 | 14,264,603 | ||||||
Mizuho Financial Group, Inc. | 1,067,200 | 12,692,389 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 396,100 | 12,148,189 | ||||||
Sumitomo Rubber Industries Ltd. | 944,700 | 8,607,071 | ||||||
Takeda Pharmaceutical Co. Ltd. | 544,200 | 15,637,996 | ||||||
Token Corp. | 33,900 | 2,261,828 | ||||||
Yamazen Corp. | 209,600 | 1,533,286 | ||||||
80,711,413 | ||||||||
Mexico — 0.4% | ||||||||
Fibra Uno Administracion SA de CV | 2,411,623 | 2,526,748 | ||||||
Netherlands — 1.5% | ||||||||
Aegon NV | 1,772,751 | 9,438,205 |
6
Shares | Value | |||||||
Russia(2)† | ||||||||
MMC Norilsk Nickel PJSC | 76,933 | $ | 226,215 | |||||
South Korea — 1.5% | ||||||||
Hyundai Mobis Co. Ltd. | 54,518 | 9,576,473 | ||||||
Spain — 3.3% | ||||||||
Banco Bilbao Vizcaya Argentaria SA | 2,561,148 | 14,015,295 | ||||||
Indra Sistemas SA(1) | 595,633 | 6,494,398 | ||||||
20,509,693 | ||||||||
Sweden — 1.5% | ||||||||
Electrolux AB, Class B | 621,741 | 9,667,265 | ||||||
Switzerland — 2.4% | ||||||||
Credit Suisse Group AG | 316,823 | 2,220,099 | ||||||
Novartis AG | 142,182 | 12,915,783 | ||||||
15,135,882 | ||||||||
United Kingdom — 22.4% | ||||||||
ASOS PLC(1) | 516,444 | 10,138,118 | ||||||
AstraZeneca PLC, ADR | 453,593 | 30,154,863 | ||||||
Barclays PLC | 11,008,996 | 23,466,704 | ||||||
Capita PLC(1) | 4,789,367 | 1,465,553 | ||||||
GSK PLC | 1,498,340 | 32,664,368 | ||||||
Standard Chartered PLC | 1,773,893 | 14,100,541 | ||||||
Taylor Wimpey PLC | 9,939,380 | 16,305,652 | ||||||
WPP PLC | 1,102,492 | 12,799,345 | ||||||
141,095,144 | ||||||||
TOTAL COMMON STOCKS (Cost $592,473,252) | 589,772,689 | |||||||
EXCHANGE-TRADED FUNDS — 2.9% | ||||||||
iShares MSCI EAFE Value ETF (Cost $17,976,650) | 369,223 | 18,247,001 | ||||||
SHORT-TERM INVESTMENTS — 2.3% | ||||||||
Money Market Funds — 0.4% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 2,283,346 | 2,283,346 | ||||||
Repurchase Agreements — 1.9% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.50% - 4.375%, 2/15/38 - 2/15/45, valued at $1,112,864), in a joint trading account at 0.74%, dated 5/31/22, due 6/1/22 (Delivery value $1,091,358) | 1,091,336 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 4.50%, 5/15/38, valued at $11,159,905), at 0.75%, dated 5/31/22, due 6/1/22 (Delivery value $10,941,228) | 10,941,000 | |||||||
12,032,336 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $14,315,682) | 14,315,682 | |||||||
TOTAL INVESTMENT SECURITIES — 99.0% (Cost $624,765,584) | 622,335,372 | |||||||
OTHER ASSETS AND LIABILITIES — 1.0% | 5,985,210 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 628,320,582 |
7
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Consumer Discretionary | 29.6% | ||||
Financials | 26.9% | ||||
Health Care | 20.9% | ||||
Communication Services | 11.4% | ||||
Information Technology | 1.8% | ||||
Industrials | 1.6% | ||||
Materials | 1.2% | ||||
Real Estate | 0.4% | ||||
Exchange-Traded Funds | 2.9% | ||||
Short-Term Investments | 2.3% | ||||
Other Assets and Liabilities | 1.0% |
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
ADR | - | American Depositary Receipt |
†Category is less than 0.05% of total net assets.
(1)Non-income producing.
(2)Securities may be subject to resale, redemption or transferability restrictions.
See Notes to Financial Statements.
8
Statement of Assets and Liabilities |
MAY 31, 2022 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $624,765,584) | $ | 622,335,372 | |||
Foreign currency holdings, at value (cost of $287,652) | 287,653 | ||||
Receivable for investments sold | 14,123,571 | ||||
Receivable for capital shares sold | 68,295 | ||||
Dividends and interest receivable | 4,289,083 | ||||
641,103,974 | |||||
Liabilities | |||||
Payable for investments purchased | 12,051,859 | ||||
Payable for capital shares redeemed | 586,454 | ||||
Accrued management fees | 145,079 | ||||
12,783,392 | |||||
Net Assets | $ | 628,320,582 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 606,512,173 | |||
Distributable earnings | 21,808,409 | ||||
$ | 628,320,582 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $154,397,954 | 16,622,298 | $9.29 | ||||||||
I Class, $0.01 Par Value | $1,397,173 | 150,378 | $9.29 | ||||||||
A Class, $0.01 Par Value | $12,641 | 1,363 | $9.27* | ||||||||
R Class, $0.01 Par Value | $44,681 | 4,825 | $9.26 | ||||||||
R6 Class, $0.01 Par Value | $4,951 | 524 | $9.45 | ||||||||
G Class, $0.01 Par Value | $472,463,182 | 50,496,461 | $9.36 |
*Maximum offering price $9.84 (net asset value divided by 0.9425).
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $2,025,654) | $ | 20,359,638 | |||
Interest | 13,396 | ||||
20,373,034 | |||||
Expenses: | |||||
Management fees | 2,891,253 | ||||
Distribution and service fees: | |||||
A Class | 16 | ||||
R Class | 118 | ||||
Directors' fees and expenses | 6,990 | ||||
Other expenses | 7,515 | ||||
2,905,892 | |||||
Fees waived - G Class | (1,968,503) | ||||
937,389 | |||||
Net investment income (loss) | 19,435,645 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | 11,508,194 | ||||
Foreign currency translation transactions | (402,071) | ||||
11,106,123 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | (25,061,166) | ||||
Translation of assets and liabilities in foreign currencies | (84,302) | ||||
(25,145,468) | |||||
Net realized and unrealized gain (loss) | (14,039,345) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 5,396,300 |
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2022 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2021 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2022 | November 30, 2021 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 19,435,645 | $ | 17,849,281 | ||||
Net realized gain (loss) | 11,106,123 | 40,119,497 | ||||||
Change in net unrealized appreciation (depreciation) | (25,145,468) | 3,287,730 | ||||||
Net increase (decrease) in net assets resulting from operations | 5,396,300 | 61,256,508 | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (7,073,080) | (1,430,575) | ||||||
I Class | (9,012) | (70) | ||||||
A Class | (534) | (49) | ||||||
R Class | (1,406) | (56) | ||||||
R6 Class | (234) | (75) | ||||||
G Class | (28,796,193) | (11,626,760) | ||||||
Decrease in net assets from distributions | (35,880,459) | (13,057,585) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 7,823,477 | 32,025,752 | ||||||
Net increase (decrease) in net assets | (22,660,682) | 80,224,675 | ||||||
Net Assets | ||||||||
Beginning of period | 650,981,264 | 570,756,589 | ||||||
End of period | $ | 628,320,582 | $ | 650,981,264 |
See Notes to Financial Statements.
11
Notes to Financial Statements |
MAY 31, 2022 (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.
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 (NAV) 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 NAV 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 NAV 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.
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.
13
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, 55% 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 | ||||||||||||
1.15% | 0.95% | 1.15% | 1.15% | 0.80% | 0.00%(1) |
(1)Annual management fee before waiver was 0.80%.
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, 2022 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, 2022 were $242,238,314 and $253,445,682, respectively.
14
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2022 | Year ended November 30, 2021 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 130,000,000 | 130,000,000 | ||||||||||||
Sold | 1,364,047 | $ | 13,471,564 | 4,534,364 | $ | 46,710,028 | ||||||||
Issued in reinvestment of distributions | 735,130 | 7,071,954 | 158,244 | 1,430,521 | ||||||||||
Redeemed | (1,148,530) | (10,819,890) | (1,008,137) | (10,047,396) | ||||||||||
950,647 | 9,723,628 | 3,684,471 | 38,093,153 | |||||||||||
I Class/Shares Authorized | 40,000,000 | 50,000,000 | ||||||||||||
Sold | 132,868 | 1,335,079 | 19,679 | 201,790 | ||||||||||
Issued in reinvestment of distributions | 920 | 8,837 | 8 | 70 | ||||||||||
Redeemed | (3,300) | (30,078) | (296) | (3,012) | ||||||||||
130,488 | 1,313,838 | 19,391 | 198,848 | |||||||||||
A Class/Shares Authorized | 40,000,000 | 50,000,000 | ||||||||||||
Sold | — | — | 804 | 8,716 | ||||||||||
Issued in reinvestment of distributions | 55 | 534 | 5 | 49 | ||||||||||
55 | 534 | 809 | 8,765 | |||||||||||
R Class/Shares Authorized | 40,000,000 | 50,000,000 | ||||||||||||
Sold | 7,168 | 70,121 | 4,277 | 43,464 | ||||||||||
Issued in reinvestment of distributions | 146 | 1,406 | 6 | 56 | ||||||||||
Redeemed | (5,696) | (53,822) | (1,801) | (18,211) | ||||||||||
1,618 | 17,705 | 2,482 | 25,309 | |||||||||||
R6 Class/Shares Authorized | 40,000,000 | 60,000,000 | ||||||||||||
Issued in reinvestment of distributions | 24 | 234 | 8 | 75 | ||||||||||
G Class/Shares Authorized | 340,000,000 | 340,000,000 | ||||||||||||
Sold | 5,000,050 | 47,050,798 | 6,193,840 | 62,730,403 | ||||||||||
Issued in reinvestment of distributions | 2,987,157 | 28,796,193 | 1,284,725 | 11,626,760 | ||||||||||
Redeemed | (7,785,977) | (79,079,453) | (8,027,946) | (80,657,561) | ||||||||||
201,230 | (3,232,462) | (549,381) | (6,300,398) | |||||||||||
Net increase (decrease) | 1,284,062 | $ | 7,823,477 | 3,157,780 | $ | 32,025,752 |
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.
15
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||
Investment Securities | |||||||||||
Common Stocks | |||||||||||
China | $ | 8,977,615 | $ | 61,626,363 | — | ||||||
France | 8,824,484 | 69,468,333 | — | ||||||||
United Kingdom | 30,154,863 | 110,940,281 | — | ||||||||
Other Countries | — | 299,780,750 | — | ||||||||
Exchange-Traded Funds | 18,247,001 | — | — | ||||||||
Short-Term Investments | 2,283,346 | 12,032,336 | — | ||||||||
$ | 68,487,309 | $ | 553,848,063 | — |
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, war, 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 majority of the fund is owned by a relatively small number of shareholders. To the extent that a large shareholder (including a fund of funds) invests in the fund, the fund may experience relatively large redemptions as such shareholder reallocates its assets. In the event of a large shareholder redemption, the ongoing operations of the fund may be at risk.
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 | $ | 636,430,788 | |||
Gross tax appreciation of investments | $ | 62,860,483 | |||
Gross tax depreciation of investments | (76,955,899) | ||||
Net tax appreciation (depreciation) of investments | $ | (14,095,416) |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
16
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations: | 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 | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $9.76 | 0.24 | (0.27) | (0.03) | (0.16) | (0.28) | (0.44) | $9.29 | (0.53)% | 1.15%(4) | 1.15%(4) | 5.09%(4) | 5.09%(4) | 38% | $154,398 | ||||||||||||||||||||||||||||||||
2021 | $8.98 | 0.18 | 0.72 | 0.90 | (0.12) | — | (0.12) | $9.76 | 10.15% | 1.25% | 1.25% | 1.76% | 1.76% | 54% | $152,993 | ||||||||||||||||||||||||||||||||
2020 | $10.61 | 0.13 | (1.31) | (1.18) | (0.32) | (0.13) | (0.45) | $8.98 | (11.75)% | 1.31% | 1.31% | 1.60% | 1.60% | 68% | $107,655 | ||||||||||||||||||||||||||||||||
2019(5) | $10.00 | 0.31 | 0.34 | 0.65 | (0.04) | — | (0.04) | $10.61 | 6.59% | 1.31%(4) | 1.31%(4) | 3.04%(4) | 3.04%(4) | 85% | $101,934 | ||||||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $9.78 | 0.25 | (0.28) | (0.03) | (0.18) | (0.28) | (0.46) | $9.29 | (0.53)% | 0.95%(4) | 0.95%(4) | 5.29%(4) | 5.29%(4) | 38% | $1,397 | ||||||||||||||||||||||||||||||||
2021 | $8.99 | 0.19 | 0.74 | 0.93 | (0.14) | — | (0.14) | $9.78 | 10.47% | 1.05% | 1.05% | 1.96% | 1.96% | 54% | $194 | ||||||||||||||||||||||||||||||||
2020(6) | $10.45 | 0.15 | (1.16) | (1.01) | (0.32) | (0.13) | (0.45) | $8.99 | (10.29)% | 1.11%(4) | 1.11%(4) | 1.80%(4) | 1.80%(4) | 68%(7) | $4 | ||||||||||||||||||||||||||||||||
A Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $9.73 | 0.23 | (0.28) | (0.05) | (0.13) | (0.28) | (0.41) | $9.27 | (0.78)% | 1.40%(4) | 1.40%(4) | 4.84%(4) | 4.84%(4) | 38% | $13 | ||||||||||||||||||||||||||||||||
2021 | $8.96 | 0.16 | 0.71 | 0.87 | (0.10) | — | (0.10) | $9.73 | 9.89% | 1.50% | 1.50% | 1.51% | 1.51% | 54% | $13 | ||||||||||||||||||||||||||||||||
2020(6) | $10.45 | 0.11 | (1.15) | (1.04) | (0.32) | (0.13) | (0.45) | $8.96 | (10.62)% | 1.56%(4) | 1.56%(4) | 1.35%(4) | 1.35%(4) | 68%(7) | $4 | ||||||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $9.71 | 0.23 | (0.29) | (0.06) | (0.11) | (0.28) | (0.39) | $9.26 | (0.83)% | 1.65%(4) | 1.65%(4) | 4.59%(4) | 4.59%(4) | 38% | $45 | ||||||||||||||||||||||||||||||||
2021 | $8.93 | 0.15 | 0.71 | 0.86 | (0.08) | — | (0.08) | $9.71 | 9.65% | 1.75% | 1.75% | 1.26% | 1.26% | 54% | $31 | ||||||||||||||||||||||||||||||||
2020(6) | $10.45 | 0.09 | (1.16) | (1.07) | (0.32) | (0.13) | (0.45) | $8.93 | (10.93)% | 1.81%(4) | 1.81%(4) | 1.10%(4) | 1.10%(4) | 68%(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 | 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) | |||||||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $9.94 | 0.26 | (0.28) | (0.02) | (0.19) | (0.28) | (0.47) | $9.45 | (0.38)% | 0.80%(4) | 0.80%(4) | 5.44%(4) | 5.44%(4) | 38% | $5 | ||||||||||||||||||||||||||||||||
2021 | $9.14 | 0.22 | 0.73 | 0.95 | (0.15) | — | (0.15) | $9.94 | 10.57% | 0.90% | 0.90% | 2.11% | 2.11% | 54% | $5 | ||||||||||||||||||||||||||||||||
2020(6) | $10.60 | 0.16 | (1.16) | (1.00) | (0.33) | (0.13) | (0.46) | $9.14 | (10.12)% | 0.96%(4) | 0.96%(4) | 1.95%(4) | 1.95%(4) | 68%(7) | $4 | ||||||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||||||||
2022(3) | $9.90 | 0.30 | (0.28) | 0.02 | (0.28) | (0.28) | (0.56) | $9.36 | 0.01% | 0.00%(4)(8) | 0.80%(4) | 6.24%(4) | 5.44%(4) | 38% | $472,463 | ||||||||||||||||||||||||||||||||
2021 | $9.11 | 0.31 | 0.72 | 1.03 | (0.24) | — | (0.24) | $9.90 | 11.56% | 0.00%(8) | 0.90% | 3.01% | 2.11% | 54% | $497,745 | ||||||||||||||||||||||||||||||||
2020 | $10.76 | 0.24 | (1.29) | (1.05) | (0.47) | (0.13) | (0.60) | $9.11 | (10.58)% | 0.01% | 0.96% | 2.90% | 1.95% | 68% | $463,081 | ||||||||||||||||||||||||||||||||
2019(5) | $10.00 | 0.43 | 0.37 | 0.80 | (0.04) | — | (0.04) | $10.76 | 8.00% | 0.01%(4) | 0.96%(4) | 4.34%(4) | 3.39%(4) | 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, 2022 (unaudited).
(4)Annualized.
(5)December 6, 2018 (fund inception) through November 30, 2019.
(6)December 3, 2019 (commencement of sale) through November 30, 2020.
(7)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2020.
(8)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 the Program Administrator, including members of 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 certain Fund’s investments is supported by a third-party liquidity assessment vendor.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period January 1, 2021 through December 31, 2021. 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.
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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. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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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. | ||||||||
©2022 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-95206 2207 |
(b) None.
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 28, 2022 |
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 28, 2022 |
By: | /s/ R. Wes Campbell | ||||||||||
Name: | R. Wes Campbell | ||||||||||
Title: | Treasurer and | ||||||||||
Chief Financial Officer | |||||||||||
(principal financial officer) | |||||||||||
Date: | July 28, 2022 |