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: | 05-31-2023 |
ITEM 1. REPORTS TO STOCKHOLDERS.
(a) Provided under separate cover.
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Semiannual Report | |||||
May 31, 2023 | |||||
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 |
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Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2023. 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.
Year-to-Date Rebound Lifted Global Stock Returns
After ending 2022 on a disappointing note, global stocks generally rebounded in the first five months of 2023. This bounce back, which occurred despite relentless volatility and ongoing central bank rate hikes, led to six-month gains for most global stock indices.
After climbing to multidecade highs in mid- to late-2022, U.S. and European inflation moderated through the end of the reporting period. This dynamic, combined with mounting recession worries, prompted investors to recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to raise rates, and markets remained volatile.
Beginning in March, high-profile bank failures in the U.S. and Europe highlighted the growing risks to the global financial system and economic growth. Market volatility escalated, but quick action from U.S. and European regulators helped restore market order.
Still, heightened uncertainty surrounding the banking industry and credit availability further fueled recession fears. Those worries strengthened investor expectations for a near-term end to central bank tightening and potential rate cuts later in the year. In the eurozone, recession worries turned to recession reality, as revised data confirmed the region’s economy contracted in the fourth quarter of 2022 and the first quarter of 2023.
Despite slowing growth and ongoing volatility, most U.S. and global stock indices advanced for the period. Non-U.S. developed markets stocks modestly outperformed U.S. stocks. Meanwhile, global growth concerns and China’s uneven post-COVID-19 reopening weighed on emerging markets stocks, which modestly declined for the period.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of still-high inflation, tighter financial conditions, banking industry turbulence and recession risk. In addition, increasingly tense geopolitical considerations complicate the market backdrop.
We appreciate your confidence in us during these extraordinary times. American Century Investments has a long history of helping clients weather unpredictable and volatile markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
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Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 99.6% | ||||
Short-Term Investments | 0.6% | ||||
Other Assets and Liabilities | (0.2)% | ||||
Top Five Countries | % of net assets | ||||
China | 27.7% | ||||
Taiwan | 16.7% | ||||
South Korea | 12.3% | ||||
India | 11.3% | ||||
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, 2022 to May 31, 2023.
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 mutual 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 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 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 12/1/22 | Ending Account Value 5/31/23 | Expenses Paid During Period(1) 12/1/22 - 5/31/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $958.10 | $6.20 | 1.27% | ||||||||||
I Class | $1,000 | $959.50 | $5.23 | 1.07% | ||||||||||
Y Class | $1,000 | $960.60 | $4.50 | 0.92% | ||||||||||
A Class | $1,000 | $957.90 | $7.42 | 1.52% | ||||||||||
C Class | $1,000 | $954.30 | $11.06 | 2.27% | ||||||||||
R Class | $1,000 | $955.30 | $8.63 | 1.77% | ||||||||||
R5 Class | $1,000 | $959.50 | $5.23 | 1.07% | ||||||||||
R6 Class | $1,000 | $959.60 | $4.49 | 0.92% | ||||||||||
G Class | $1,000 | $963.90 | $0.10 | 0.02% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,018.60 | $6.39 | 1.27% | ||||||||||
I Class | $1,000 | $1,019.60 | $5.39 | 1.07% | ||||||||||
Y Class | $1,000 | $1,020.34 | $4.63 | 0.92% | ||||||||||
A Class | $1,000 | $1,017.35 | $7.64 | 1.52% | ||||||||||
C Class | $1,000 | $1,013.61 | $11.40 | 2.27% | ||||||||||
R Class | $1,000 | $1,016.11 | $8.90 | 1.77% | ||||||||||
R5 Class | $1,000 | $1,019.60 | $5.39 | 1.07% | ||||||||||
R6 Class | $1,000 | $1,020.34 | $4.63 | 0.92% | ||||||||||
G Class | $1,000 | $1,024.83 | $0.10 | 0.02% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
5
Schedule of Investments |
MAY 31, 2023 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.6% | ||||||||
Brazil — 6.6% | ||||||||
Banco BTG Pactual SA | 3,272,800 | $ | 16,921,046 | |||||
Embraer SA, ADR(1)(2) | 2,033,719 | 30,261,739 | ||||||
Hapvida Participacoes e Investimentos SA(1) | 19,927,555 | 15,633,152 | ||||||
PRIO SA(1) | 6,510,900 | 43,826,944 | ||||||
Sendas Distribuidora SA | 3,810,300 | 8,133,867 | ||||||
Vale SA, ADR | 1,250,339 | 15,854,299 | ||||||
WEG SA | 3,737,500 | 28,016,700 | ||||||
158,647,747 | ||||||||
China — 27.7% | ||||||||
Aier Eye Hospital Group Co. Ltd., Class A | 3,358,262 | 12,669,471 | ||||||
Alibaba Group Holding Ltd., ADR(1) | 902,419 | 71,787,431 | ||||||
BYD Co. Ltd., H Shares | 992,500 | 29,970,993 | ||||||
China Construction Bank Corp., H Shares | 70,629,000 | 45,180,002 | ||||||
China Education Group Holdings Ltd. | 5,671,000 | 4,601,623 | ||||||
China State Construction International Holdings Ltd. | 21,134,000 | 23,907,213 | ||||||
China Tourism Group Duty Free Corp. Ltd., A Shares | 508,323 | 8,796,363 | ||||||
ENN Energy Holdings Ltd. | 2,046,800 | 23,836,426 | ||||||
H World Group Ltd., ADR(1) | 539,815 | 19,768,025 | ||||||
Industrial & Commercial Bank of China Ltd., H Shares | 33,521,740 | 17,901,956 | ||||||
Kweichow Moutai Co. Ltd., A Shares | 193,110 | 44,256,603 | ||||||
Li Ning Co. Ltd. | 2,037,500 | 10,947,528 | ||||||
Meituan, Class B(1) | 1,789,740 | 25,130,235 | ||||||
NetEase, Inc. | 2,153,900 | 36,635,345 | ||||||
Ping An Insurance Group Co. of China Ltd., H Shares | 4,964,000 | 31,502,465 | ||||||
Shanghai International Airport Co. Ltd., Class A(1) | 1,631,400 | 10,685,114 | ||||||
Shenzhou International Group Holdings Ltd. | 1,506,500 | 12,198,707 | ||||||
Sungrow Power Supply Co. Ltd., A Shares | 1,774,699 | 27,460,530 | ||||||
Tencent Holdings Ltd. | 3,801,400 | 150,437,798 | ||||||
Trip.com Group Ltd.(1) | 1,138,650 | 36,264,734 | ||||||
Wuxi Biologics Cayman, Inc.(1) | 2,104,000 | 10,772,003 | ||||||
Yantai Jereh Oilfield Services Group Co. Ltd., A Shares(1) | 3,192,929 | 10,943,890 | ||||||
665,654,455 | ||||||||
Hong Kong — 1.1% | ||||||||
Sands China Ltd.(1) | 8,447,600 | 27,393,827 | ||||||
India — 11.3% | ||||||||
Bajaj Auto Ltd. | 359,457 | 19,820,981 | ||||||
Godrej Consumer Products Ltd.(1) | 1,428,844 | 18,263,993 | ||||||
HDFC Bank Ltd. | 2,647,609 | 51,411,677 | ||||||
Hindalco Industries Ltd. | 3,736,843 | 18,296,442 | ||||||
ICICI Bank Ltd., ADR | 1,843,188 | 42,245,869 | ||||||
Infosys Ltd., ADR | 783,478 | 12,504,309 | ||||||
Reliance Industries Ltd. | 1,978,457 | 58,987,412 | ||||||
Sun Pharmaceutical Industries Ltd. | 3,164,837 | 37,315,943 | ||||||
Tata Consultancy Services Ltd. | 292,382 | 11,607,278 | ||||||
270,453,904 | ||||||||
Indonesia — 1.5% | ||||||||
Bank Rakyat Indonesia Persero Tbk PT | 97,563,800 | 36,253,544 |
6
Shares | Value | |||||||
Malaysia — 0.5% | ||||||||
CIMB Group Holdings Bhd | 11,113,709 | $ | 11,601,308 | |||||
Mexico — 6.5% | ||||||||
America Movil SAB de CV, ADR(1) | 1,371,847 | 29,165,467 | ||||||
Arca Continental SAB de CV | 2,905,988 | 29,373,659 | ||||||
Cemex SAB de CV, ADR(1) | 6,053,393 | 36,320,358 | ||||||
Grupo Financiero Banorte SAB de CV, Class O | 6,082,947 | 48,879,535 | ||||||
Wal-Mart de Mexico SAB de CV(2) | 3,559,775 | 13,541,594 | ||||||
157,280,613 | ||||||||
Peru — 0.6% | ||||||||
Credicorp Ltd. | 101,724 | 13,168,172 | ||||||
Philippines — 0.6% | ||||||||
Ayala Land, Inc. | 31,019,980 | 14,517,989 | ||||||
Russia(3)† | ||||||||
Novatek PJSC | 1,100,400 | 1 | ||||||
Saudi Arabia — 3.4% | ||||||||
Al Rajhi Bank | 2,012,868 | 37,921,713 | ||||||
Alinma Bank | 1,683,019 | 14,639,797 | ||||||
Elm Co. | 114,156 | 13,654,864 | ||||||
Saudi Arabian Oil Co. | 1,717,223 | 14,413,924 | ||||||
80,630,298 | ||||||||
South Africa — 2.4% | ||||||||
Capitec Bank Holdings Ltd.(2) | 183,434 | 12,549,506 | ||||||
Naspers Ltd., N Shares | 236,082 | 35,613,768 | ||||||
Shoprite Holdings Ltd. | 973,672 | 9,654,042 | ||||||
57,817,316 | ||||||||
South Korea — 12.3% | ||||||||
Hotel Shilla Co. Ltd.(2) | 212,749 | 12,374,119 | ||||||
Hyundai Motor Co. | 109,665 | 16,501,978 | ||||||
Samsung Biologics Co. Ltd.(1) | 93,707 | 55,297,130 | ||||||
Samsung Electro-Mechanics Co. Ltd. | 66,173 | 7,344,101 | ||||||
Samsung Electronics Co. Ltd. | 2,705,555 | 145,154,278 | ||||||
Samsung SDI Co. Ltd. | 45,147 | 24,388,385 | ||||||
SK Hynix, Inc. | 427,198 | 34,839,442 | ||||||
295,899,433 | ||||||||
Taiwan — 16.7% | ||||||||
Chailease Holding Co. Ltd. | 8,449,836 | 55,602,812 | ||||||
Delta Electronics, Inc. | 3,439,000 | 35,314,948 | ||||||
E Ink Holdings, Inc. | 1,962,000 | 13,189,591 | ||||||
E.Sun Financial Holding Co. Ltd. | 17,662,617 | 14,867,705 | ||||||
Far EasTone Telecommunications Co. Ltd. | 7,120,000 | 17,778,651 | ||||||
Nanya Technology Corp. | 5,566,000 | 13,265,869 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 13,928,713 | 252,079,505 | ||||||
402,099,081 | ||||||||
Thailand — 4.7% | ||||||||
Central Pattana PCL | 8,316,900 | 16,115,883 | ||||||
CP ALL PCL | 22,424,200 | 41,059,590 | ||||||
Kasikornbank PCL | 7,382,900 | 27,461,497 | ||||||
Minor International PCL | 15,709,200 | 15,221,732 | ||||||
PTT Exploration & Production PCL | 3,485,000 | 13,954,662 | ||||||
113,813,364 | ||||||||
Turkey — 1.0% | ||||||||
BIM Birlesik Magazalar AS | 3,408,403 | 23,194,631 |
7
Shares | Value | |||||||
United Arab Emirates — 1.5% | ||||||||
Emaar Properties PJSC | 21,311,883 | $ | 35,630,054 | |||||
United States — 1.2% | ||||||||
MercadoLibre, Inc.(1) | 24,130 | 29,897,070 | ||||||
TOTAL COMMON STOCKS (Cost $2,178,903,219) | 2,393,952,807 | |||||||
SHORT-TERM INVESTMENTS — 0.6% | ||||||||
Money Market Funds† | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio(4) | 152,866 | 152,866 | ||||||
Repurchase Agreements — 0.6% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 11/30/28 - 11/15/43, valued at $2,039,555), in a joint trading account at 5.01%, dated 5/31/23, due 6/1/23 (Delivery value $1,995,406) | 1,995,128 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.50%, 4/30/30, valued at $13,234,518), at 5.05%, dated 5/31/23, due 6/1/23 (Delivery value $12,976,820) | 12,975,000 | |||||||
14,970,128 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $15,122,994) | 15,122,994 | |||||||
TOTAL INVESTMENT SECURITIES — 100.2% (Cost $2,194,026,213) | 2,409,075,801 | |||||||
OTHER ASSETS AND LIABILITIES — (0.2)% | (4,477,908) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 2,404,597,893 |
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Information Technology | 23.5% | ||||
Financials | 19.8% | ||||
Consumer Discretionary | 15.6% | ||||
Communication Services | 9.7% | ||||
Consumer Staples | 7.8% | ||||
Energy | 6.0% | ||||
Health Care | 5.4% | ||||
Industrials | 5.0% | ||||
Materials | 3.0% | ||||
Real Estate | 2.8% | ||||
Utilities | 1.0% | ||||
Short-Term Investments | 0.6% | ||||
Other Assets and Liabilities | (0.2)% |
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 $19,730,089. 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)Securities may be subject to resale, redemption or transferability restrictions.
(4)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $21,229,676, which includes securities collateral of $21,076,810.
See Notes to Financial Statements.
8
Statement of Assets and Liabilities |
MAY 31, 2023 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $2,193,873,347) — including $19,730,089 of securities on loan | $ | 2,408,922,935 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $152,866) | 152,866 | ||||
Total investment securities, at value (cost of $2,194,026,213) | 2,409,075,801 | ||||
Foreign currency holdings, at value (cost of $1,051) | 1,051 | ||||
Receivable for investments sold | 6,688,146 | ||||
Receivable for capital shares sold | 1,660,932 | ||||
Dividends and interest receivable | 3,164,585 | ||||
Securities lending receivable | 26,281 | ||||
Other assets | 55,314 | ||||
2,420,672,110 | |||||
Liabilities | |||||
Disbursements in excess of demand deposit cash | 7,542,901 | ||||
Payable for collateral received for securities on loan | 152,866 | ||||
Payable for investments purchased | 2,442,474 | ||||
Payable for capital shares redeemed | 3,630,874 | ||||
Accrued management fees | 1,553,156 | ||||
Distribution and service fees payable | 20,726 | ||||
Accrued foreign taxes | 731,220 | ||||
16,074,217 | |||||
Net Assets | $ | 2,404,597,893 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 2,998,142,335 | |||
Distributable earnings (loss) | (593,544,442) | ||||
$ | 2,404,597,893 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $345,502,466 | 36,714,438 | $9.41 | ||||||||
I Class, $0.01 Par Value | $688,350,540 | 71,250,104 | $9.66 | ||||||||
Y Class, $0.01 Par Value | $35,930,358 | 3,712,138 | $9.68 | ||||||||
A Class, $0.01 Par Value | $40,061,699 | 4,419,107 | $9.07 | ||||||||
C Class, $0.01 Par Value | $10,830,448 | 1,326,269 | $8.17 | ||||||||
R Class, $0.01 Par Value | $5,684,116 | 624,324 | $9.10 | ||||||||
R5 Class, $0.01 Par Value | $9,499,152 | 982,376 | $9.67 | ||||||||
R6 Class, $0.01 Par Value | $560,223,255 | 57,969,019 | $9.66 | ||||||||
G Class, $0.01 Par Value | $708,515,859 | 72,800,703 | $9.73 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except Class A, for which the maximum offering price per share was $9.62 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of Class A and Class C.
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $2,259,239) | $ | 30,210,600 | |||
Interest | 521,177 | ||||
Securities lending, net | 97,882 | ||||
30,829,659 | |||||
Expenses: | |||||
Management fees | 13,110,378 | ||||
Distribution and service fees: | |||||
A Class | 59,067 | ||||
C Class | 60,763 | ||||
R Class | 14,957 | ||||
Directors' fees and expenses | 42,455 | ||||
Other expenses | 201,356 | ||||
13,488,976 | |||||
Fees waived - G Class | (3,223,159) | ||||
10,265,817 | |||||
Net investment income (loss) | 20,563,842 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions (net of foreign tax expenses paid (refunded) of $1,215,795) | (214,915,100) | ||||
Foreign currency translation transactions | (821,818) | ||||
(215,736,918) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments (includes (increase) decrease in accrued foreign taxes of $2,553,163) | 96,559,138 | ||||
Translation of assets and liabilities in foreign currencies | (30,482) | ||||
96,528,656 | |||||
Net realized and unrealized gain (loss) | (119,208,262) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (98,644,420) |
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 20,563,842 | $ | 35,247,272 | ||||
Net realized gain (loss) | (215,736,918) | (309,951,407) | ||||||
Change in net unrealized appreciation (depreciation) | 96,528,656 | (625,280,162) | ||||||
Net increase (decrease) in net assets resulting from operations | (98,644,420) | (899,984,297) | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (7,908,718) | (4,433,245) | ||||||
I Class | (17,845,842) | (15,057,238) | ||||||
Y Class | (843,213) | (535,793) | ||||||
A Class | (1,076,143) | (538,424) | ||||||
C Class | (214,857) | — | ||||||
R Class | (112,728) | (31,292) | ||||||
R5 Class | (237,310) | (121,944) | ||||||
R6 Class | (15,916,126) | (9,852,306) | ||||||
G Class | (20,631,687) | (24) | ||||||
Decrease in net assets from distributions | (64,786,624) | (30,570,266) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (168,173,567) | 420,922,848 | ||||||
Net increase (decrease) in net assets | (331,604,611) | (509,631,715) | ||||||
Net Assets | ||||||||
Beginning of period | 2,736,202,504 | 3,245,834,219 | ||||||
End of period | $ | 2,404,597,893 | $ | 2,736,202,504 |
See Notes to Financial Statements.
11
Notes to Financial Statements |
MAY 31, 2023 (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 value of investments of the fund is determined by American Century Investment Management, Inc. (ACIM) (the investment advisor), as the valuation designee, pursuant to its valuation policies and procedures. The Board of Directors oversees the valuation designee and reviews its valuation policies and procedures at least annually.
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 valuation designee determines that the market price for a portfolio security is not readily available or is believed by the valuation designee to be unreliable, such security is valued at fair value as determined in good faith by the valuation designee, in accordance with its policies and procedures. Circumstances that may cause the fund to determine that market quotations are not available or reliable include, but are not limited to: when there is a significant event subsequent to the market quotation; trading in a security has been halted during the trading day; or trading in a security is insufficient or did not take place due to a closure or holiday.
The valuation designee 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; regulatory news, 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 valuation designee also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that it deems appropriate. The valuation designee 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.
12
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 ACIM has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund's policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
13
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, 2023.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 152,866 | — | — | — | $ | 152,866 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 152,866 |
(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, 19% 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 | ||||||||||||||||||
1.25% | 1.05% | 0.90% | 1.25% | 1.25% | 1.25% | 1.05% | 0.90% | 0.00%(1) |
(1)Annual management fee before waiver was 0.90%.
14
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2023 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, 2023 were $497,393,638 and $739,086,079, respectively.
15
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2023 | Year ended November 30, 2022(1) | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 1,000,000,000 | 1,100,000,000 | ||||||||||||
Sold | 2,702,389 | $ | 27,039,588 | 6,048,510 | $ | 73,081,025 | ||||||||
Issued in reinvestment of distributions | 800,057 | 7,704,547 | 379,470 | 4,322,163 | ||||||||||
Redeemed | (3,500,483) | (34,608,639) | (10,249,865) | (115,441,774) | ||||||||||
1,963 | 135,496 | (3,821,885) | (38,038,586) | |||||||||||
I Class/Shares Authorized | 1,400,000,000 | 1,520,000,000 | ||||||||||||
Sold | 12,511,896 | 128,040,777 | 38,584,764 | 446,185,226 | ||||||||||
Issued in reinvestment of distributions | 1,688,115 | 16,678,573 | 1,181,788 | 13,791,471 | ||||||||||
Redeemed | (23,403,473) | (236,953,533) | (77,797,712) | (853,066,174) | ||||||||||
(9,203,462) | (92,234,183) | (38,031,160) | (393,089,477) | |||||||||||
Y Class/Shares Authorized | 40,000,000 | 30,000,000 | ||||||||||||
Sold | 800,351 | 8,270,498 | 3,903,441 | 46,950,678 | ||||||||||
Issued in reinvestment of distributions | 82,397 | 814,907 | 43,474 | 508,209 | ||||||||||
Redeemed | (842,259) | (8,538,158) | (3,077,023) | (32,540,149) | ||||||||||
40,489 | 547,247 | 869,892 | 14,918,738 | |||||||||||
A Class/Shares Authorized | 100,000,000 | 100,000,000 | ||||||||||||
Sold | 990,737 | 9,378,683 | 2,304,400 | 24,907,653 | ||||||||||
Issued in reinvestment of distributions | 62,812 | 583,523 | 27,169 | 298,592 | ||||||||||
Redeemed | (1,951,972) | (18,748,435) | (4,177,258) | (44,494,688) | ||||||||||
(898,423) | (8,786,229) | (1,845,689) | (19,288,443) | |||||||||||
C Class/Shares Authorized | 45,000,000 | 45,000,000 | ||||||||||||
Sold | 50,644 | 434,537 | 100,840 | 933,394 | ||||||||||
Issued in reinvestment of distributions | 22,066 | 185,358 | — | — | ||||||||||
Redeemed | (265,197) | (2,281,957) | (726,732) | (6,922,219) | ||||||||||
(192,487) | (1,662,062) | (625,892) | (5,988,825) | |||||||||||
R Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 92,476 | 884,680 | 206,455 | 2,241,994 | ||||||||||
Issued in reinvestment of distributions | 12,069 | 112,728 | 2,832 | 31,290 | ||||||||||
Redeemed | (106,003) | (1,027,951) | (165,026) | (1,819,630) | ||||||||||
(1,458) | (30,543) | 44,261 | 453,654 | |||||||||||
R5 Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 113,738 | 1,153,397 | 297,124 | 3,359,435 | ||||||||||
Issued in reinvestment of distributions | 23,973 | 237,095 | 10,433 | 121,852 | ||||||||||
Redeemed | (195,453) | (2,061,508) | (134,705) | (1,575,297) | ||||||||||
(57,742) | (671,016) | 172,852 | 1,905,990 | |||||||||||
R6 Class/Shares Authorized | 750,000,000 | 450,000,000 | ||||||||||||
Sold | 9,049,895 | 91,909,218 | 22,145,809 | 254,818,438 | ||||||||||
Issued in reinvestment of distributions | 1,563,411 | 15,446,501 | 821,931 | 9,591,938 | ||||||||||
Redeemed | (19,358,006) | (195,717,234) | (16,919,603) | (189,415,923) | ||||||||||
(8,744,700) | (88,361,515) | 6,048,137 | 74,994,453 | |||||||||||
G Class/Shares Authorized | 750,000,000 | 510,000,000 | ||||||||||||
Sold | 6,044,106 | 60,466,335 | 7,000,209 | 70,836,355 | ||||||||||
Issued in connection with reorganization (Note 9) | — | — | 69,959,409 | 781,612,283 | ||||||||||
Issued in reinvestment of distributions | 2,081,906 | 20,631,687 | 2 | 24 | ||||||||||
Redeemed | (5,703,788) | (58,208,784) | (6,581,141) | (67,393,318) | ||||||||||
2,422,224 | 22,889,238 | 70,378,479 | 785,055,344 | |||||||||||
Net increase (decrease) | (16,633,596) | $ | (168,173,567) | 33,188,995 | $ | 420,922,848 |
(1)April 1, 2022 (commencement of sale) through November 30, 2022 for the G Class.
16
6. Fair Value Measurements
The fund's investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund's portfolio holdings.
Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||
Investment Securities | |||||||||||
Common Stocks | |||||||||||
Brazil | $ | 46,116,038 | $ | 112,531,709 | — | ||||||
China | 91,555,456 | 574,098,999 | — | ||||||||
India | 54,750,178 | 215,703,726 | — | ||||||||
Mexico | 65,485,825 | 91,794,788 | — | ||||||||
Peru | 13,168,172 | — | — | ||||||||
United States | 29,897,070 | — | — | ||||||||
Other Countries | — | 1,098,850,846 | — | ||||||||
Short-Term Investments | 152,866 | 14,970,128 | — | ||||||||
$ | 301,125,605 | $ | 2,107,950,196 | — |
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.
17
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 2,250,694,945 | |||
Gross tax appreciation of investments | $ | 405,428,935 | |||
Gross tax depreciation of investments | (247,048,079) | ||||
Net tax appreciation (depreciation) of investments | $ | 158,380,856 |
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.
As of November 30, 2022, the fund had accumulated short-term capital losses of $(559,991,097), 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 depreciation 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 November 30, 2022 are as follows:
Net investment income (loss) | $ | 40,561,064 | |||
Net realized and unrealized gain (loss) | (1,115,140,186) | ||||
Net increase (decrease) in net assets resulting from operations | $ | (1,074,579,122) |
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.
18
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations*: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $10.04 | 0.05 | (0.47) | (0.42) | (0.21) | — | (0.21) | $9.41 | (4.19)% | 1.27%(4) | 1.27%(4) | 1.09%(4) | 1.09%(4) | 19% | $345,502 | ||||||||||||||||||||||||||||||||
2022 | $13.67 | 0.09 | (3.61) | (3.52) | (0.11) | — | (0.11) | $10.04 | (25.84)% | 1.26% | 1.26% | 0.84% | 0.84% | 52% | $368,506 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $10.30 | 0.06 | (0.47) | (0.41) | (0.23) | — | (0.23) | $9.66 | (4.05)% | 1.07%(4) | 1.07%(4) | 1.29%(4) | 1.29%(4) | 19% | $688,351 | ||||||||||||||||||||||||||||||||
2022 | $14.02 | 0.11 | (3.70) | (3.59) | (0.13) | — | (0.13) | $10.30 | (25.69)% | 1.06% | 1.06% | 1.04% | 1.04% | 52% | $828,883 | ||||||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $10.32 | 0.07 | (0.47) | (0.40) | (0.24) | — | (0.24) | $9.68 | (3.94)% | 0.92%(4) | 0.92%(4) | 1.44%(4) | 1.44%(4) | 19% | $35,930 | ||||||||||||||||||||||||||||||||
2022 | $14.05 | 0.13 | (3.71) | (3.58) | (0.15) | — | (0.15) | $10.32 | (25.60)% | 0.91% | 0.91% | 1.19% | 1.19% | 52% | $37,909 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
A Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $9.67 | 0.04 | (0.44) | (0.40) | (0.20) | — | (0.20) | $9.07 | (4.21)% | 1.52%(4) | 1.52%(4) | 0.84%(4) | 0.84%(4) | 19% | $40,062 | ||||||||||||||||||||||||||||||||
2022 | $13.17 | 0.06 | (3.48) | (3.42) | (0.08) | — | (0.08) | $9.67 | (26.03)% | 1.51% | 1.51% | 0.59% | 0.59% | 52% | $51,434 | ||||||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $8.71 | —(5) | (0.39) | (0.39) | (0.15) | — | (0.15) | $8.17 | (4.57)% | 2.27%(4) | 2.27%(4) | 0.09%(4) | 0.09%(4) | 19% | $10,830 | ||||||||||||||||||||||||||||||||
2022 | $11.87 | (0.02) | (3.14) | (3.16) | — | — | — | $8.71 | (26.56)% | 2.26% | 2.26% | (0.16)% | (0.16)% | 52% | $13,231 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $9.71 | 0.03 | (0.46) | (0.43) | (0.18) | — | (0.18) | $9.10 | (4.47)% | 1.77%(4) | 1.77%(4) | 0.59%(4) | 0.59%(4) | 19% | $5,684 | ||||||||||||||||||||||||||||||||
2022 | $13.22 | 0.03 | (3.49) | (3.46) | (0.05) | — | (0.05) | $9.71 | (26.20)% | 1.76% | 1.76% | 0.34% | 0.34% | 52% | $6,075 | ||||||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $10.31 | 0.07 | (0.48) | (0.41) | (0.23) | — | (0.23) | $9.67 | (4.05)% | 1.07%(4) | 1.07%(4) | 1.29%(4) | 1.29%(4) | 19% | $9,499 | ||||||||||||||||||||||||||||||||
2022 | $14.04 | 0.11 | (3.71) | (3.60) | (0.13) | — | (0.13) | $10.31 | (25.67)% | 1.06% | 1.06% | 1.04% | 1.04% | 52% | $10,725 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $10.31 | 0.07 | (0.48) | (0.41) | (0.24) | — | (0.24) | $9.66 | (4.04)% | 0.92%(4) | 0.92%(4) | 1.44%(4) | 1.44%(4) | 19% | $560,223 | ||||||||||||||||||||||||||||||||
2022 | $14.03 | 0.13 | (3.70) | (3.57) | (0.15) | — | (0.15) | $10.31 | (25.56)% | 0.91% | 0.91% | 1.19% | 1.19% | 52% | $687,720 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $10.40 | 0.12 | (0.49) | (0.37) | (0.30) | — | (0.30) | $9.73 | (3.61)% | 0.02%(4) | 0.92%(4) | 2.34%(4) | 1.44%(4) | 19% | $708,516 | ||||||||||||||||||||||||||||||||
2022(6) | $12.44 | 0.16 | (2.08) | (1.92) | (0.12) | — | (0.12) | $10.40 | (15.56)% | 0.01%(4) | 0.91%(4) | 2.42%(4) | 1.52%(4) | 52%(7) | $731,719 |
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, 2023 (unaudited).
(4)Annualized.
(5)Per-share amount was less than $0.005.
(6)April 1, 2022 (commencement of sale) through November 30, 2022.
(7)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2022.
*The amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of the fund in relation to income earned and/or fluctuations in the fair value of the fund's investments.
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, including members of ACIM’s Investment Oversight Committee who are members of ACIM’s Investment Management and Global Analytics departments, conduct the day-to-day operation of the program pursuant to the program.
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 investments held by the Fund 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, 2022 through December 31, 2022. 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 at the IRS default rate of 10%.* 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.
You may elect a different withholding rate, or request zero withholding, by submitting an acceptable IRS Form W-4R election with your distribution request. You may notify us of your W-4R election by telephone, on our distribution forms, on IRS Form W-4R, or through other acceptable electronic means. If your withholding election is for an automatic withdrawal plan, you have the right to revoke your election at any time and any election you make will remain in effect until revoked by filing a new election.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld according to state regulations if, at the time of your distribution, your tax residency is within one of the mandatory withholding states.
*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.
25
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. | ||||||||
©2023 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92633 2307 |
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Semiannual Report | |||||
May 31, 2023 | |||||
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 |
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Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2023. 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.
Year-to-Date Rebound Lifted Global Stock Returns
After ending 2022 on a disappointing note, global stocks generally rebounded in the first five months of 2023. This bounce back, which occurred despite relentless volatility and ongoing central bank rate hikes, led to six-month gains for most global stock indices.
After climbing to multidecade highs in mid- to late-2022, U.S. and European inflation moderated through the end of the reporting period. This dynamic, combined with mounting recession worries, prompted investors to recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to raise rates, and markets remained volatile.
Beginning in March, high-profile bank failures in the U.S. and Europe highlighted the growing risks to the global financial system and economic growth. Market volatility escalated, but quick action from U.S. and European regulators helped restore market order.
Still, heightened uncertainty surrounding the banking industry and credit availability further fueled recession fears. Those worries strengthened investor expectations for a near-term end to central bank tightening and potential rate cuts later in the year. In the eurozone, recession worries turned to recession reality, as revised data confirmed the region’s economy contracted in the fourth quarter of 2022 and the first quarter of 2023.
Despite slowing growth and ongoing volatility, most U.S. and global stock indices advanced for the period. Non-U.S. developed markets stocks modestly outperformed U.S. stocks. Meanwhile, global growth concerns and China’s uneven post-COVID-19 reopening weighed on emerging markets stocks, which modestly declined for the period.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of still-high inflation, tighter financial conditions, banking industry turbulence and recession risk. In addition, increasingly tense geopolitical considerations complicate the market backdrop.
We appreciate your confidence in us during these extraordinary times. American Century Investments has a long history of helping clients weather unpredictable and volatile markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
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Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Fund Characteristics |
MAY 31, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 94.7% | ||||
Exchange-Traded Funds | 1.2% | ||||
Short-Term Investments | 6.5% | ||||
Other Assets and Liabilities | (2.4)% | ||||
Top Five Countries* | % of net assets | ||||
Taiwan | 19.0% | ||||
India | 19.0% | ||||
South Korea | 11.6% | ||||
China | 7.8% | ||||
Brazil | 7.3% |
*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, 2022 to May 31, 2023.
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 mutual 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 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 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 12/1/22 | Ending Account Value 5/31/23 | Expenses Paid During Period(1) 12/1/22 - 5/31/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,001.00 | $7.03 | 1.41% | ||||||||||
I Class | $1,000 | $1,002.20 | $6.04 | 1.21% | ||||||||||
A Class | $1,000 | $999.30 | $8.27 | 1.66% | ||||||||||
C Class | $1,000 | $996.60 | $12.00 | 2.41% | ||||||||||
R Class | $1,000 | $998.40 | $9.52 | 1.91% | ||||||||||
R6 Class | $1,000 | $1,002.90 | $5.29 | 1.06% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,017.90 | $7.09 | 1.41% | ||||||||||
I Class | $1,000 | $1,018.90 | $6.09 | 1.21% | ||||||||||
A Class | $1,000 | $1,016.65 | $8.35 | 1.66% | ||||||||||
C Class | $1,000 | $1,012.92 | $12.09 | 2.41% | ||||||||||
R Class | $1,000 | $1,015.41 | $9.60 | 1.91% | ||||||||||
R6 Class | $1,000 | $1,019.65 | $5.34 | 1.06% |
(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, 2023 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 94.7% | ||||||||
Brazil — 7.3% | ||||||||
Embraer SA, ADR(1)(2) | 8,803 | $ | 130,989 | |||||
PRIO SA(1) | 40,900 | 275,311 | ||||||
Santos Brasil Participacoes SA | 63,100 | 124,252 | ||||||
Sendas Distribuidora SA | 56,400 | 120,397 | ||||||
SLC Agricola SA | 10,620 | 72,177 | ||||||
TOTVS SA | 7,800 | 44,433 | ||||||
YDUQS Participacoes SA(1) | 26,000 | 72,363 | ||||||
839,922 | ||||||||
Canada — 0.4% | ||||||||
ERO Copper Corp.(1) | 2,880 | 47,671 | ||||||
China — 7.8% | ||||||||
BOC Aviation Ltd. | 7,300 | 53,600 | ||||||
China East Education Holdings Ltd.(2) | 122,500 | 50,400 | ||||||
China Education Group Holdings Ltd.(2) | 56,000 | 45,440 | ||||||
China Overseas Property Holdings Ltd. | 130,000 | 119,285 | ||||||
Far East Horizon Ltd.(2) | 288,000 | 241,323 | ||||||
Hainan Meilan International Airport Co. Ltd., H Shares(1) | 31,000 | 52,385 | ||||||
Jinxin Fertility Group Ltd.(2) | 79,500 | 41,064 | ||||||
Li Ning Co. Ltd. | 7,500 | 40,298 | ||||||
Tongcheng Travel Holdings Ltd.(1) | 51,200 | 102,204 | ||||||
TravelSky Technology Ltd., H Shares | 48,000 | 87,567 | ||||||
Xtep International Holdings Ltd.(2) | 53,000 | 53,272 | ||||||
886,838 | ||||||||
Greece — 1.7% | ||||||||
OPAP SA | 11,139 | 190,201 | ||||||
Hong Kong — 1.3% | ||||||||
MGM China Holdings Ltd.(1) | 148,400 | 152,743 | ||||||
India — 19.0% | ||||||||
AU Small Finance Bank Ltd. | 15,180 | 142,323 | ||||||
Crompton Greaves Consumer Electricals Ltd. | 13,987 | 46,413 | ||||||
Indian Hotels Co. Ltd. | 67,833 | 319,148 | ||||||
Jyothy Labs Ltd. | 77,829 | 196,738 | ||||||
MakeMyTrip Ltd.(1) | 3,133 | 81,677 | ||||||
Persistent Systems Ltd. | 1,826 | 113,111 | ||||||
Phoenix Mills Ltd. | 12,856 | 227,811 | ||||||
Prestige Estates Projects Ltd. | 31,468 | 183,596 | ||||||
Shriram Finance Ltd. | 5,980 | 101,057 | ||||||
Torrent Pharmaceuticals Ltd. | 5,695 | 126,227 | ||||||
Varun Beverages Ltd. | 15,252 | 312,014 | ||||||
VIP Industries Ltd. | 15,441 | 113,062 | ||||||
WNS Holdings Ltd., ADR(1) | 2,668 | 207,304 | ||||||
2,170,481 | ||||||||
Indonesia — 2.7% | ||||||||
Aneka Tambang Tbk PT | 626,400 | 79,125 | ||||||
Mitra Adiperkasa Tbk PT(1) | 1,949,100 | 230,667 | ||||||
309,792 |
6
Shares | Value | |||||||
Malaysia — 2.1% | ||||||||
Carlsberg Brewery Malaysia Bhd | 38,800 | $ | 173,789 | |||||
Gamuda Bhd | 74,000 | 71,189 | ||||||
244,978 | ||||||||
Mexico — 5.3% | ||||||||
Corp. Inmobiliaria Vesta SAB de CV | 50,562 | 160,098 | ||||||
Gentera SAB de CV | 246,934 | 265,794 | ||||||
Grupo Aeroportuario del Centro Norte SAB de CV, ADR(2) | 2,238 | 184,971 | ||||||
610,863 | ||||||||
Peru — 0.4% | ||||||||
Intercorp Financial Services, Inc. | 2,280 | 48,450 | ||||||
Philippines — 3.5% | ||||||||
Bloomberry Resorts Corp.(1) | 780,600 | 142,827 | ||||||
International Container Terminal Services, Inc. | 17,560 | 60,977 | ||||||
Security Bank Corp. | 43,150 | 65,309 | ||||||
Wilcon Depot, Inc. | 256,100 | 129,513 | ||||||
398,626 | ||||||||
Russia(3)† | ||||||||
HeadHunter Group PLC, ADR(1) | 776 | — | ||||||
Saudi Arabia — 3.3% | ||||||||
Arabian Contracting Services Co. | 3,442 | 131,207 | ||||||
Leejam Sports Co. JSC | 3,156 | 99,273 | ||||||
Saudi Airlines Catering Co. | 6,233 | 145,223 | ||||||
375,703 | ||||||||
South Africa — 1.6% | ||||||||
Capitec Bank Holdings Ltd.(2) | 702 | 48,027 | ||||||
Clicks Group Ltd. | 7,506 | 89,399 | ||||||
Exxaro Resources Ltd. | 5,176 | 42,114 | ||||||
179,540 | ||||||||
South Korea — 11.6% | ||||||||
BGF retail Co. Ltd. | 1,367 | 196,312 | ||||||
Cosmax, Inc.(1) | 3,997 | 239,169 | ||||||
Dentium Co. Ltd. | 1,486 | 177,424 | ||||||
Fila Holdings Corp. | 3,341 | 91,449 | ||||||
Han Kuk Carbon Co. Ltd. | 8,482 | 72,038 | ||||||
Hotel Shilla Co. Ltd. | 2,401 | 139,649 | ||||||
Jeisys Medical, Inc. | 17,909 | 122,476 | ||||||
LG Innotek Co. Ltd. | 428 | 98,823 | ||||||
Orion Corp./Republic of Korea | 1,998 | 194,418 | ||||||
1,331,758 | ||||||||
Taiwan — 19.0% | ||||||||
Accton Technology Corp. | 11,000 | 126,124 | ||||||
Airtac International Group | 3,000 | 96,705 | ||||||
Alchip Technologies Ltd. | 5,000 | 267,813 | ||||||
Bizlink Holding, Inc. | 7,000 | 62,848 | ||||||
Chailease Holding Co. Ltd. | 37,074 | 243,960 | ||||||
Chroma ATE, Inc. | 14,000 | 105,850 | ||||||
Global Unichip Corp. | 5,000 | 242,123 | ||||||
Gourmet Master Co. Ltd. | 46,000 | 222,662 | ||||||
Great Tree Pharmacy Co. Ltd. | 14,000 | 160,800 | ||||||
Himax Technologies, Inc., ADR(2) | 8,059 | 55,446 | ||||||
King Yuan Electronics Co. Ltd. | 90,000 | 157,727 |
7
Shares | Value | |||||||
Pegavision Corp. | 13,000 | $ | 152,055 | |||||
Sercomm Corp. | 21,000 | 65,088 | ||||||
Universal Vision Biotechnology Co. Ltd. | 10,250 | 131,334 | ||||||
Winbond Electronics Corp. | 103,000 | 89,010 | ||||||
2,179,545 | ||||||||
Thailand — 6.2% | ||||||||
Bumrungrad Hospital PCL | 42,800 | 274,032 | ||||||
Erawan Group PCL, NVDR(1) | 1,556,100 | 185,064 | ||||||
Minor International PCL | 128,200 | 124,222 | ||||||
Plan B Media PCL, F Shares | 230,500 | 59,612 | ||||||
Thai Oil PCL | 49,000 | 60,810 | ||||||
703,740 | ||||||||
Turkey — 0.8% | ||||||||
Sok Marketler Ticaret AS(1) | 70,538 | 92,440 | ||||||
United Arab Emirates — 0.7% | ||||||||
Emirates Central Cooling Systems Corp. | 175,245 | 81,577 | ||||||
TOTAL COMMON STOCKS (Cost $9,511,238) | 10,844,868 | |||||||
EXCHANGE-TRADED FUNDS — 1.2% | ||||||||
Fubon Taiwan Small-Mid Cap Alpha Momentum 50 ETF (Cost $138,977) | 93,000 | 131,628 | ||||||
SHORT-TERM INVESTMENTS — 6.5% | ||||||||
Money Market Funds — 1.7% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 995 | 995 | ||||||
State Street Navigator Securities Lending Government Money Market Portfolio(4) | 201,124 | 201,124 | ||||||
202,119 | ||||||||
Repurchase Agreements — 4.8% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 11/30/28 - 11/15/43, valued at $74,830), in a joint trading account at 5.01%, dated 5/31/23, due 6/1/23 (Delivery value $73,210) | 73,200 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.875%, 5/15/49, valued at $485,554), at 5.05%, dated 5/31/23, due 6/1/23 (Delivery value $476,067) | 476,000 | |||||||
549,200 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $751,319) | 751,319 | |||||||
TOTAL INVESTMENT SECURITIES — 102.4% (Cost $10,401,534) | 11,727,815 | |||||||
OTHER ASSETS AND LIABILITIES — (2.4)% | (279,720) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 11,448,095 |
8
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Consumer Discretionary | 23.7% | ||||
Consumer Staples | 16.1% | ||||
Information Technology | 12.0% | ||||
Industrials | 10.4% | ||||
Financials | 10.1% | ||||
Health Care | 9.0% | ||||
Real Estate | 6.0% | ||||
Energy | 3.4% | ||||
Materials | 1.7% | ||||
Communication Services | 1.6% | ||||
Utilities | 0.7% | ||||
Exchange-Traded Funds | 1.2% | ||||
Short-Term Investments | 6.5% | ||||
Other Assets and Liabilities | (2.4)% |
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
ADR | – | American Depositary Receipt | ||||||
NVDR | – | Non-Voting 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 $644,545. 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)Securities may be subject to resale, redemption or transferability restrictions.
(4)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $696,119, which includes securities collateral of $494,995.
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2023 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $10,200,410) — including $644,545 of securities on loan | $ | 11,526,691 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $201,124) | 201,124 | ||||
Total investment securities, at value (cost of $10,401,534) | 11,727,815 | ||||
Foreign currency holdings, at value (cost of $1,584) | 1,568 | ||||
Receivable for capital shares sold | 854 | ||||
Dividends and interest receivable | 12,227 | ||||
Securities lending receivable | 716 | ||||
Other assets | 520 | ||||
11,743,700 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 201,124 | ||||
Payable for capital shares redeemed | 995 | ||||
Accrued management fees | 11,873 | ||||
Distribution and service fees payable | 297 | ||||
Accrued foreign taxes | 81,316 | ||||
295,605 | |||||
Net Assets | $ | 11,448,095 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 11,127,286 | |||
Distributable earnings (loss) | 320,809 | ||||
$ | 11,448,095 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $2,338,270 | 195,394 | $11.97 | ||||||||
I Class, $0.01 Par Value | $6,205,740 | 515,922 | $12.03 | ||||||||
A Class, $0.01 Par Value | $244,308 | 20,575 | $11.87 | ||||||||
C Class, $0.01 Par Value | $12,153 | 1,060 | $11.47 | ||||||||
R Class, $0.01 Par Value | $550,873 | 46,868 | $11.75 | ||||||||
R6 Class, $0.01 Par Value | $2,096,751 | 173,680 | $12.07 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except Class A, for which the maximum offering price per share was $12.59 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of Class A and Class C.
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $9,997) | $ | 92,966 | |||
Interest | 7,231 | ||||
Securities lending, net | 2,771 | ||||
102,968 | |||||
Expenses: | |||||
Management fees | 68,963 | ||||
Distribution and service fees: | |||||
A Class | 305 | ||||
C Class | 61 | ||||
R Class | 1,313 | ||||
Directors' fees and expenses | 181 | ||||
Other expenses | 772 | ||||
71,595 | |||||
Net investment income (loss) | 31,373 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions (net of foreign tax expenses paid (refunded) of $3,233) | (199,099) | ||||
Foreign currency translation transactions | (6,124) | ||||
(205,223) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments (includes (increase) decrease in accrued foreign taxes of $(24,739)) | 217,795 | ||||
Translation of assets and liabilities in foreign currencies | (653) | ||||
217,142 | |||||
Net realized and unrealized gain (loss) | 11,919 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 43,292 |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 31,373 | $ | 129,413 | ||||
Net realized gain (loss) | (205,223) | (616,181) | ||||||
Change in net unrealized appreciation (depreciation) | 217,142 | (1,649,070) | ||||||
Net increase (decrease) in net assets resulting from operations | 43,292 | (2,135,838) | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (50,517) | (243,371) | ||||||
I Class | (137,593) | (455,863) | ||||||
A Class | (4,405) | (22,401) | ||||||
C Class | (135) | (754) | ||||||
R Class | (7,964) | (39,365) | ||||||
R6 Class | (26,437) | (1,395) | ||||||
Decrease in net assets from distributions | (227,051) | (763,149) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 995,185 | 3,141,480 | ||||||
Net increase (decrease) in net assets | 811,426 | 242,493 | ||||||
Net Assets | ||||||||
Beginning of period | 10,636,669 | 10,394,176 | ||||||
End of period | $ | 11,448,095 | $ | 10,636,669 |
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2023 (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 value of investments of the fund is determined by American Century Investment Management, Inc. (ACIM) (the investment advisor), as the valuation designee, pursuant to its valuation policies and procedures. The Board of Directors oversees the valuation designee and reviews its valuation policies and procedures at least annually.
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 valuation designee determines that the market price for a portfolio security is not readily available or is believed by the valuation designee to be unreliable, such security is valued at fair value as determined in good faith by the valuation designee, in accordance with its policies and procedures. Circumstances that may cause the fund to determine that market quotations are not available or reliable include, but are not limited to: when there is a significant event subsequent to the market quotation; trading in a security has been halted during the trading day; or trading in a security is insufficient or did not take place due to a closure or holiday.
The valuation designee 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; regulatory news, 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 valuation designee also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that it deems appropriate. The valuation designee 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 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 ACIM has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund's policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
14
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
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, 2023.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 201,124 | — | — | — | $ | 201,124 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 201,124 |
(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.
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% |
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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, 2023 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, 2023 were $3,972,687 and $3,505,155, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2023 | Year ended November 30, 2022 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 35,000,000 | 40,000,000 | ||||||||||||
Sold | 15,435 | $ | 186,443 | 23,898 | $ | 328,218 | ||||||||
Issued in reinvestment of distributions | 4,214 | 49,679 | 15,784 | 239,280 | ||||||||||
Redeemed | (23,133) | (285,949) | (50,201) | (689,117) | ||||||||||
(3,484) | (49,827) | (10,519) | (121,619) | |||||||||||
I Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||
Sold | 51,865 | 625,310 | 208,766 | 2,797,130 | ||||||||||
Issued in reinvestment of distributions | 11,621 | 137,593 | 29,930 | 455,532 | ||||||||||
Redeemed | (61,315) | (739,532) | (92,476) | (1,234,590) | ||||||||||
2,171 | 23,371 | 146,220 | 2,018,072 | |||||||||||
A Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 68 | 808 | 46 | 547 | ||||||||||
Issued in reinvestment of distributions | 376 | 4,405 | 1,488 | 22,401 | ||||||||||
Redeemed | — | — | (11) | (140) | ||||||||||
444 | 5,213 | 1,523 | 22,808 | |||||||||||
C Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | — | — | 370 | 4,607 | ||||||||||
Issued in reinvestment of distributions | 12 | 135 | 52 | 754 | ||||||||||
12 | 135 | 422 | 5,361 | |||||||||||
R Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 10,702 | 126,582 | 20,048 | 254,182 | ||||||||||
Issued in reinvestment of distributions | 687 | 7,964 | 2,633 | 39,304 | ||||||||||
Redeemed | (8,277) | (97,681) | (11,001) | (138,933) | ||||||||||
3,112 | 36,865 | 11,680 | 154,553 | |||||||||||
R6 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 107,884 | 1,287,849 | 92,243 | 1,091,341 | ||||||||||
Issued in reinvestment of distributions | 2,227 | 26,437 | 91 | 1,395 | ||||||||||
Redeemed | (27,265) | (334,858) | (2,594) | (30,431) | ||||||||||
82,846 | 979,428 | 89,740 | 1,062,305 | |||||||||||
Net increase (decrease) | 85,101 | $ | 995,185 | 239,066 | $ | 3,141,480 |
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.
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The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund's portfolio holdings.
Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||
Investment Securities | |||||||||||
Common Stocks | |||||||||||
Brazil | $ | 130,989 | $ | 708,933 | — | ||||||
India | 288,981 | 1,881,500 | — | ||||||||
Mexico | 184,971 | 425,892 | — | ||||||||
Peru | 48,450 | — | — | ||||||||
Taiwan | 55,446 | 2,124,099 | — | ||||||||
Other Countries | — | 4,995,607 | — | ||||||||
Exchange-Traded Funds | — | 131,628 | — | ||||||||
Short-Term Investments | 202,119 | 549,200 | — | ||||||||
$ | 910,956 | $ | 10,816,859 | — |
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 | $ | 10,558,254 | |||
Gross tax appreciation of investments | $ | 1,803,134 | |||
Gross tax depreciation of investments | (633,573) | ||||
Net tax appreciation (depreciation) of investments | $ | 1,169,561 |
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.
As of November 30, 2022, the fund had accumulated short-term capital losses of $(563,777), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
18
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations*: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $12.21 | 0.02 | (0.01) | 0.01 | (0.25) | — | (0.25) | $11.97 | 0.10% | 1.41%(4) | 0.41%(4) | 32% | $2,338 | ||||||||||||||||||||||||||||
2022 | $16.48 | 0.15 | (3.20) | (3.05) | (0.02) | (1.20) | (1.22) | $12.21 | (19.90)% | 1.41% | 1.21% | 64% | $2,428 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $12.28 | 0.04 | (0.02) | 0.02 | (0.27) | — | (0.27) | $12.03 | 0.22% | 1.21%(4) | 0.61%(4) | 32% | $6,206 | ||||||||||||||||||||||||||||
2022 | $16.57 | 0.18 | (3.22) | (3.04) | (0.05) | (1.20) | (1.25) | $12.28 | (19.80)% | 1.21% | 1.41% | 64% | $6,309 | ||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $12.10 | 0.01 | (0.02) | (0.01) | (0.22) | — | (0.22) | $11.87 | (0.07)% | 1.66%(4) | 0.16%(4) | 32% | $244 | ||||||||||||||||||||||||||||
2022 | $16.36 | 0.12 | (3.18) | (3.06) | — | (1.20) | (1.20) | $12.10 | (20.13)% | 1.66% | 0.96% | 64% | $244 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $11.64 | (0.03) | (0.01) | (0.04) | (0.13) | — | (0.13) | $11.47 | (0.34)% | 2.41%(4) | (0.59)%(4) | 32% | $12 | ||||||||||||||||||||||||||||
2022 | $15.90 | 0.04 | (3.10) | (3.06) | — | (1.20) | (1.20) | $11.64 | (20.75)% | 2.41% | 0.21% | 64% | $12 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $11.96 | —(6) | (0.02) | (0.02) | (0.19) | — | (0.19) | $11.75 | (0.16)% | 1.91%(4) | (0.09)%(4) | 32% | $551 | ||||||||||||||||||||||||||||
2022 | $16.23 | 0.09 | (3.16) | (3.07) | — | (1.20) | (1.20) | $11.96 | (20.37)% | 1.91% | 0.71% | 64% | $523 | ||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $12.33 | 0.05 | (0.02) | 0.03 | (0.29) | — | (0.29) | $12.07 | 0.29% | 1.06%(4) | 0.76%(4) | 32% | $2,097 | ||||||||||||||||||||||||||||
2022 | $16.64 | 0.20 | (3.24) | (3.04) | (0.07) | (1.20) | (1.27) | $12.33 | (19.66)% | 1.06% | 1.56% | 64% | $1,120 | ||||||||||||||||||||||||||||
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 |
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, 2023 (unaudited).
(4)Annualized.
(5)Ratio was less than 0.005%.
(6)Per-share amount was less than $0.005.
*The amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of the fund in relation to income earned and/or fluctuations in the fair value of the fund's investments.
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, including members of ACIM’s Investment Oversight Committee who are members of ACIM’s Investment Management and Global Analytics departments, conduct the day-to-day operation of the program pursuant to the program.
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 investments held by the Fund 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, 2022 through December 31, 2022. 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 at the IRS default rate of 10%.* 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.
You may elect a different withholding rate, or request zero withholding, by submitting an acceptable IRS Form W-4R election with your distribution request. You may notify us of your W-4R election by telephone, on our distribution forms, on IRS Form W-4R, or through other acceptable electronic means. If your withholding election is for an automatic withdrawal plan, you have the right to revoke your election at any time and any election you make will remain in effect until revoked by filing a new election.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld according to state regulations if, at the time of your distribution, your tax residency is within one of the mandatory withholding states.
*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. | ||||||||
©2023 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92636 2307 |
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Semiannual Report | |||||
May 31, 2023 | |||||
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 |
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Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2023. 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.
Year-to-Date Rebound Lifted Global Stock Returns
After ending 2022 on a disappointing note, global stocks generally rebounded in the first five months of 2023. This bounce back, which occurred despite relentless volatility and ongoing central bank rate hikes, led to six-month gains for most global stock indices.
After climbing to multidecade highs in mid- to late-2022, U.S. and European inflation moderated through the end of the reporting period. This dynamic, combined with mounting recession worries, prompted investors to recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to raise rates, and markets remained volatile.
Beginning in March, high-profile bank failures in the U.S. and Europe highlighted the growing risks to the global financial system and economic growth. Market volatility escalated, but quick action from U.S. and European regulators helped restore market order.
Still, heightened uncertainty surrounding the banking industry and credit availability further fueled recession fears. Those worries strengthened investor expectations for a near-term end to central bank tightening and potential rate cuts later in the year. In the eurozone, recession worries turned to recession reality, as revised data confirmed the region’s economy contracted in the fourth quarter of 2022 and the first quarter of 2023.
Despite slowing growth and ongoing volatility, most U.S. and global stock indices advanced for the period. Non-U.S. developed markets stocks modestly outperformed U.S. stocks. Meanwhile, global growth concerns and China’s uneven post-COVID-19 reopening weighed on emerging markets stocks, which modestly declined for the period.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of still-high inflation, tighter financial conditions, banking industry turbulence and recession risk. In addition, increasingly tense geopolitical considerations complicate the market backdrop.
We appreciate your confidence in us during these extraordinary times. American Century Investments has a long history of helping clients weather unpredictable and volatile markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
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Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 98.7% | ||||
Short-Term Investments | 1.3% | ||||
Other Assets and Liabilities | —* | ||||
*Category is less than 0.05% of total net assets. | |||||
Top Five Countries | % of net assets | ||||
United States | 62.9% | ||||
France | 7.5% | ||||
United Kingdom | 5.3% | ||||
Hong Kong | 4.7% | ||||
Ireland | 3.0% |
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, 2022 to May 31, 2023.
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 mutual 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 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 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 12/1/22 | Ending Account Value 5/31/23 | Expenses Paid During Period(1) 12/1/22 - 5/31/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,028.50 | $5.46 | 1.08% | ||||||||||
I Class | $1,000 | $1,029.60 | $4.45 | 0.88% | ||||||||||
Y Class | $1,000 | $1,030.80 | $3.70 | 0.73% | ||||||||||
A Class | $1,000 | $1,027.30 | $6.72 | 1.33% | ||||||||||
C Class | $1,000 | $1,024.00 | $10.50 | 2.08% | ||||||||||
R Class | $1,000 | $1,025.60 | $7.98 | 1.58% | ||||||||||
R5 Class | $1,000 | $1,029.70 | $4.45 | 0.88% | ||||||||||
R6 Class | $1,000 | $1,030.90 | $3.70 | 0.73% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,019.55 | $5.44 | 1.08% | ||||||||||
I Class | $1,000 | $1,020.54 | $4.43 | 0.88% | ||||||||||
Y Class | $1,000 | $1,021.29 | $3.68 | 0.73% | ||||||||||
A Class | $1,000 | $1,018.30 | $6.69 | 1.33% | ||||||||||
C Class | $1,000 | $1,014.56 | $10.45 | 2.08% | ||||||||||
R Class | $1,000 | $1,017.05 | $7.95 | 1.58% | ||||||||||
R5 Class | $1,000 | $1,020.54 | $4.43 | 0.88% | ||||||||||
R6 Class | $1,000 | $1,021.29 | $3.68 | 0.73% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. 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, 2023 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 98.7% | ||||||||
Brazil — 2.8% | ||||||||
B3 SA - Brasil Bolsa Balcao | 6,230,700 | $ | 16,407,891 | |||||
Canada — 2.5% | ||||||||
Canadian Natural Resources Ltd. | 189,920 | 14,471,904 | ||||||
Denmark — 2.5% | ||||||||
Novo Nordisk A/S, B Shares | 91,190 | 14,675,288 | ||||||
France — 7.5% | ||||||||
AXA SA | 515,930 | 14,626,965 | ||||||
Pernod Ricard SA | 64,510 | 13,974,079 | ||||||
Schneider Electric SE | 88,170 | 15,253,299 | ||||||
43,854,343 | ||||||||
Hong Kong — 4.7% | ||||||||
AIA Group Ltd. | 1,439,200 | 13,835,313 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 364,483 | 13,348,113 | ||||||
27,183,426 | ||||||||
India — 2.6% | ||||||||
HDFC Bank Ltd. | 767,830 | 14,909,840 | ||||||
Ireland — 3.0% | ||||||||
ICON PLC(1) | 81,220 | 17,302,297 | ||||||
Italy — 2.3% | ||||||||
Stellantis NV | 887,914 | 13,535,256 | ||||||
Spain — 2.6% | ||||||||
Cellnex Telecom SA | 369,090 | 14,957,539 | ||||||
United Kingdom — 5.3% | ||||||||
AstraZeneca PLC | 102,580 | 14,940,832 | ||||||
London Stock Exchange Group PLC | 146,170 | 15,582,388 | ||||||
30,523,220 | ||||||||
United States — 62.9% | ||||||||
Air Products & Chemicals, Inc. | 52,130 | 14,030,268 | ||||||
American Water Works Co., Inc. | 104,500 | 15,095,025 | ||||||
Aptiv PLC(1) | 164,230 | 14,465,378 | ||||||
Avantor, Inc.(1) | 767,690 | 15,307,739 | ||||||
Cheniere Energy, Inc. | 96,620 | 13,504,577 | ||||||
CoStar Group, Inc.(1) | 214,760 | 17,051,944 | ||||||
Equinix, Inc. | 20,806 | 15,511,913 | ||||||
FMC Corp. | 137,700 | 14,331,816 | ||||||
GXO Logistics, Inc.(1) | 298,997 | 16,719,912 | ||||||
Howmet Aerospace, Inc. | 331,870 | 14,187,443 | ||||||
Humana, Inc. | 28,800 | 14,453,856 | ||||||
MarketAxess Holdings, Inc. | 51,540 | 14,040,011 | ||||||
Marvell Technology, Inc. | 352,840 | 20,637,612 | ||||||
Mastercard, Inc., Class A | 39,990 | 14,597,150 | ||||||
Microsoft Corp. | 124,600 | 40,917,394 | ||||||
NXP Semiconductors NV | 86,580 | 15,506,478 | ||||||
Pioneer Natural Resources Co. | 72,628 | 14,484,928 | ||||||
Prologis, Inc. | 120,950 | 15,064,323 | ||||||
S&P Global, Inc. | 44,600 | 16,387,378 |
6
Shares | Value | |||||||
SBA Communications Corp. | 65,990 | $ | 14,635,262 | |||||
TransDigm Group, Inc. | 19,930 | 15,418,845 | ||||||
Workday, Inc., Class A(1) | 85,690 | 18,165,423 | ||||||
364,514,675 | ||||||||
TOTAL COMMON STOCKS (Cost $510,464,775) | 572,335,679 | |||||||
SHORT-TERM INVESTMENTS — 1.3% | ||||||||
Money Market Funds† | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 13,679 | 13,679 | ||||||
Repurchase Agreements — 1.3% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 11/30/28 - 11/15/43, valued at $1,025,456), in a joint trading account at 5.01%, dated 5/31/23, due 6/1/23 (Delivery value $1,003,258) | 1,003,118 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.50%, 4/30/30, valued at$6,653,505), at 5.05%, dated 5/31/23, due 6/1/23 (Delivery value $6,523,915) | 6,523,000 | |||||||
7,526,118 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $7,539,797) | 7,539,797 | |||||||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $518,004,572) | 579,875,476 | |||||||
OTHER ASSETS AND LIABILITIES† | (30,110) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 579,845,366 |
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Financials | 23.0% | ||||
Information Technology | 16.5% | ||||
Industrials | 16.1% | ||||
Health Care | 13.2% | ||||
Real Estate | 7.8% | ||||
Materials | 4.9% | ||||
Energy | 4.8% | ||||
Consumer Discretionary | 4.8% | ||||
Utilities | 2.6% | ||||
Communication Services | 2.6% | ||||
Consumer Staples | 2.4% | ||||
Short-Term Investments | 1.3% | ||||
Other Assets and Liabilities | —* |
*Category is less than 0.05% of total net assets.
NOTES TO SCHEDULE OF INVESTMENTS |
†Category is less than 0.05% of total net assets.
(1)Non-income producing.
See Notes to Financial Statements.
7
Statement of Assets and Liabilities |
MAY 31, 2023 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $518,004,572) | $ | 579,875,476 | |||
Receivable for capital shares sold | 49,386 | ||||
Dividends and interest receivable | 1,320,490 | ||||
Other assets | 1,060 | ||||
581,246,412 | |||||
Liabilities | |||||
Foreign currency overdraft payable, at value (cost of $45,981) | 45,910 | ||||
Payable for capital shares redeemed | 400,733 | ||||
Accrued management fees | 488,886 | ||||
Distribution and service fees payable | 10,119 | ||||
Accrued foreign taxes | 421,704 | ||||
Accrued other expenses | 33,694 | ||||
1,401,046 | |||||
Net Assets | $ | 579,845,366 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 521,866,605 | |||
Distributable earnings (loss) | 57,978,761 | ||||
$ | 579,845,366 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $383,277,249 | 37,791,290 | $10.14 | ||||||||
I Class, $0.01 Par Value | $77,208,110 | 7,336,161 | $10.52 | ||||||||
Y Class, $0.01 Par Value | $378,583 | 35,551 | $10.65 | ||||||||
A Class, $0.01 Par Value | $26,907,072 | 2,825,462 | $9.52 | ||||||||
C Class, $0.01 Par Value | $2,409,141 | 357,633 | $6.74 | ||||||||
R Class, $0.01 Par Value | $6,014,469 | 660,812 | $9.10 | ||||||||
R5 Class, $0.01 Par Value | $9,126 | 867 | $10.53 | ||||||||
R6 Class, $0.01 Par Value | $83,641,616 | 7,869,378 | $10.63 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except Class A, for which the maximum offering price per share was $10.10 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of Class A and Class C.
See Notes to Financial Statements.
8
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $504,923) | $ | 5,622,789 | |||
Interest | 119,391 | ||||
5,742,180 | |||||
Expenses: | |||||
Management fees | 2,842,093 | ||||
Distribution and service fees: | |||||
A Class | 31,597 | ||||
C Class | 13,206 | ||||
R Class | 15,063 | ||||
Directors' fees and expenses | 9,290 | ||||
Other expenses | 40,900 | ||||
2,952,149 | |||||
Net investment income (loss) | 2,790,031 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions (net of foreign tax expenses paid (refunded) of $121,104) | 1,270,829 | ||||
Foreign currency translation transactions | (56,481) | ||||
1,214,348 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments (includes (increase) decrease in accrued foreign taxes of $117,230) | 11,888,378 | ||||
Translation of assets and liabilities in foreign currencies | 18,402 | ||||
11,906,780 | |||||
Net realized and unrealized gain (loss) | 13,121,128 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 15,911,159 |
See Notes to Financial Statements.
9
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 2,790,031 | $ | 3,734,648 | ||||
Net realized gain (loss) | 1,214,348 | 53,883,424 | ||||||
Change in net unrealized appreciation (depreciation) | 11,906,780 | (173,476,915) | ||||||
Net increase (decrease) in net assets resulting from operations | 15,911,159 | (115,858,843) | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (41,136,845) | (59,295,371) | ||||||
I Class | (8,447,283) | (12,265,976) | ||||||
Y Class | (34,387) | (36,897) | ||||||
A Class | (2,818,294) | (4,217,225) | ||||||
C Class | (404,907) | (855,686) | ||||||
R Class | (677,257) | (1,075,356) | ||||||
R5 Class | (932) | (1,247) | ||||||
R6 Class | (8,363,717) | (11,450,826) | ||||||
Decrease in net assets from distributions | (61,883,622) | (89,198,584) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 40,241,128 | 44,991,325 | ||||||
Net increase (decrease) in net assets | (5,731,335) | (160,066,102) | ||||||
Net Assets | ||||||||
Beginning of period | 585,576,701 | 745,642,803 | ||||||
End of period | $ | 579,845,366 | $ | 585,576,701 |
See Notes to Financial Statements.
10
Notes to Financial Statements |
MAY 31, 2023 (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 value of investments of the fund is determined by American Century Investment Management, Inc. (ACIM) (the investment advisor), as the valuation designee, pursuant to its valuation policies and procedures. The Board of Directors oversees the valuation designee and reviews its valuation policies and procedures at least annually.
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 valuation designee determines that the market price for a portfolio security is not readily available or is believed by the valuation designee to be unreliable, such security is valued at fair value as determined in good faith by the valuation designee, in accordance with its policies and procedures. Circumstances that may cause the fund to determine that market quotations are not available or reliable include, but are not limited to: when there is a significant event subsequent to the market quotation; trading in a security has been halted during the trading day; or trading in a security is insufficient or did not take place due to a closure or holiday.
The valuation designee 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; regulatory news, 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 valuation designee also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that it deems appropriate. The valuation designee may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
11
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that ACIM has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund's policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
12
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation's investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (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), as well as exchange-traded funds managed by the investment advisor, 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, 2023 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |||||||
Investor Class | 1.050% to 1.300% | 1.07% | ||||||
I Class | 0.850% to 1.100% | 0.87% | ||||||
Y Class | 0.700% to 0.950% | 0.72% | ||||||
A Class | 1.050% to 1.300% | 1.07% | ||||||
C Class | 1.050% to 1.300% | 1.07% | ||||||
R Class | 1.050% to 1.300% | 1.07% | ||||||
R5 Class | 0.850% to 1.100% | 0.87% | ||||||
R6 Class | 0.700% to 0.950% | 0.72% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2023 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 $1,257,728 and there were no interfund sales.
13
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2023 were $197,346,851 and $216,942,835, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2023 | Year ended November 30, 2022 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 450,000,000 | 450,000,000 | ||||||||||||
Sold | 825,176 | $ | 8,313,546 | 1,932,663 | $ | 22,830,018 | ||||||||
Issued in reinvestment of distributions | 4,185,379 | 39,468,121 | 4,250,591 | 57,000,417 | ||||||||||
Redeemed | (2,227,595) | (22,570,997) | (4,218,375) | (49,360,350) | ||||||||||
2,782,960 | 25,210,670 | 1,964,879 | 30,470,085 | |||||||||||
I Class/Shares Authorized | 100,000,000 | 45,000,000 | ||||||||||||
Sold | 615,476 | 6,419,482 | 1,832,844 | 22,512,912 | ||||||||||
Issued in reinvestment of distributions | 863,486 | 8,444,893 | 885,350 | 12,262,099 | ||||||||||
Redeemed | (1,278,906) | (13,443,936) | (2,270,173) | (27,276,465) | ||||||||||
200,056 | 1,420,439 | 448,021 | 7,498,546 | |||||||||||
Y Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 3,975 | 41,325 | 9,940 | 135,647 | ||||||||||
Issued in reinvestment of distributions | 3,477 | 34,387 | 2,640 | 36,897 | ||||||||||
Redeemed | (332) | (3,751) | (4,067) | (49,932) | ||||||||||
7,120 | 71,961 | 8,513 | 122,612 | |||||||||||
A Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||
Sold | 340,447 | 3,268,260 | 339,523 | 3,783,093 | ||||||||||
Issued in reinvestment of distributions | 312,247 | 2,769,627 | 326,486 | 4,143,104 | ||||||||||
Redeemed | (313,706) | (3,004,040) | (566,995) | (6,486,681) | ||||||||||
338,988 | 3,033,847 | 99,014 | 1,439,516 | |||||||||||
C Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 8,850 | 61,167 | 32,854 | 261,919 | ||||||||||
Issued in reinvestment of distributions | 63,840 | 401,551 | 89,588 | 847,510 | ||||||||||
Redeemed | (78,807) | (530,418) | (248,279) | (2,050,541) | ||||||||||
(6,117) | (67,700) | (125,837) | (941,112) | |||||||||||
R Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 46,053 | 422,188 | 93,331 | 1,019,297 | ||||||||||
Issued in reinvestment of distributions | 79,865 | 677,257 | 88,071 | 1,075,356 | ||||||||||
Redeemed | (64,989) | (597,642) | (191,599) | (2,163,704) | ||||||||||
60,929 | 501,803 | (10,197) | (69,051) | |||||||||||
R5 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Issued in reinvestment of distributions | 95 | 932 | 90 | 1,247 | ||||||||||
R6 Class/Shares Authorized | 75,000,000 | 60,000,000 | ||||||||||||
Sold | 1,140,597 | 12,072,728 | 1,996,810 | 23,558,711 | ||||||||||
Issued in reinvestment of distributions | 763,180 | 7,532,585 | 736,785 | 10,285,523 | ||||||||||
Redeemed | (912,989) | (9,536,137) | (2,160,503) | (27,374,752) | ||||||||||
990,788 | 10,069,176 | 573,092 | 6,469,482 | |||||||||||
Net increase (decrease) | 4,374,819 | $ | 40,241,128 | 2,957,575 | $ | 44,991,325 |
14
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 | — | $ | 16,407,891 | — | |||||||
Denmark | — | 14,675,288 | — | ||||||||
France | — | 43,854,343 | — | ||||||||
Hong Kong | — | 27,183,426 | — | ||||||||
India | — | 14,909,840 | — | ||||||||
Italy | — | 13,535,256 | — | ||||||||
Spain | — | 14,957,539 | — | ||||||||
United Kingdom | — | 30,523,220 | — | ||||||||
Other Countries | $ | 396,288,876 | — | — | |||||||
Short-Term Investments | 13,679 | 7,526,118 | — | ||||||||
$ | 396,302,555 | $ | 183,572,921 | — |
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.
15
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 | $ | 520,085,569 | |||
Gross tax appreciation of investments | $ | 79,694,291 | |||
Gross tax depreciation of investments | (19,904,384) | ||||
Net tax appreciation (depreciation) of investments | $ | 59,789,907 |
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, 2022, the fund had post-October capital loss deferrals of $(5,653,358), which represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
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 | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $11.10 | 0.05 | 0.18 | 0.23 | (0.06) | (1.13) | (1.19) | $10.14 | 2.85% | 1.08%(4) | 0.91%(4) | 34% | $383,277 | ||||||||||||||||||||||||||||
2022 | $15.00 | 0.06 | (2.16) | (2.10) | (0.03) | (1.77) | (1.80) | $11.10 | (16.07)% | 1.10% | 0.54% | 45% | $388,619 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $11.48 | 0.06 | 0.19 | 0.25 | (0.08) | (1.13) | (1.21) | $10.52 | 2.96% | 0.88%(4) | 1.11%(4) | 34% | $77,208 | ||||||||||||||||||||||||||||
2022 | $15.46 | 0.09 | (2.24) | (2.15) | (0.06) | (1.77) | (1.83) | $11.48 | (15.93)% | 0.90% | 0.74% | 45% | $81,949 | ||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $11.61 | 0.07 | 0.20 | 0.27 | (0.10) | (1.13) | (1.23) | $10.65 | 3.08% | 0.73%(4) | 1.26%(4) | 34% | $379 | ||||||||||||||||||||||||||||
2022 | $15.62 | 0.11 | (2.27) | (2.16) | (0.08) | (1.77) | (1.85) | $11.61 | (15.82)% | 0.75% | 0.89% | 45% | $330 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
A Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $10.48 | 0.03 | 0.17 | 0.20 | (0.03) | (1.13) | (1.16) | $9.52 | 2.73% | 1.33%(4) | 0.66%(4) | 34% | $26,907 | ||||||||||||||||||||||||||||
2022 | $14.27 | 0.03 | (2.05) | (2.02) | — | (1.77) | (1.77) | $10.48 | (16.32)% | 1.35% | 0.29% | 45% | $26,064 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $7.76 | —(5) | 0.11 | 0.11 | — | (1.13) | (1.13) | $6.74 | 2.40% | 2.08%(4) | (0.09)%(4) | 34% | $2,409 | ||||||||||||||||||||||||||||
2022 | $11.08 | (0.04) | (1.51) | (1.55) | — | (1.77) | (1.77) | $7.76 | (16.87)% | 2.10% | (0.46)% | 45% | $2,822 | ||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $10.06 | 0.02 | 0.16 | 0.18 | (0.01) | (1.13) | (1.14) | $9.10 | 2.56% | 1.58%(4) | 0.41%(4) | 34% | $6,014 | ||||||||||||||||||||||||||||
2022 | $13.79 | —(5) | (1.96) | (1.96) | — | (1.77) | (1.77) | $10.06 | (16.48)% | 1.60% | 0.04% | 45% | $6,033 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
R5 Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $11.49 | 0.06 | 0.19 | 0.25 | (0.08) | (1.13) | (1.21) | $10.53 | 2.97% | 0.88%(4) | 1.11%(4) | 34% | $9 | ||||||||||||||||||||||||||||
2022 | $15.46 | 0.09 | (2.23) | (2.14) | (0.06) | (1.77) | (1.83) | $11.49 | (15.86)% | 0.90% | 0.74% | 45% | $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 | ||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $11.59 | 0.07 | 0.20 | 0.27 | (0.10) | (1.13) | (1.23) | $10.63 | 3.09% | 0.73%(4) | 1.26%(4) | 34% | $83,642 | ||||||||||||||||||||||||||||
2022 | $15.59 | 0.11 | (2.26) | (2.15) | (0.08) | (1.77) | (1.85) | $11.59 | (15.79)% | 0.75% | 0.89% | 45% | $79,749 | ||||||||||||||||||||||||||||
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 |
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, 2023 (unaudited).
(4)Annualized.
(5)Per-share amount was less than $0.005.
*The amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of the fund in relation to income earned and/or fluctuations in the fair value of the fund's investments.
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, including members of ACIM’s Investment Oversight Committee who are members of ACIM’s Investment Management and Global Analytics departments, conduct the day-to-day operation of the program pursuant to the program.
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 investments held by the Fund 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, 2022 through December 31, 2022. 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.
21
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding at the IRS default rate of 10%.* 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.
You may elect a different withholding rate, or request zero withholding, by submitting an acceptable IRS Form W-4R election with your distribution request. You may notify us of your W-4R election by telephone, on our distribution forms, on IRS Form W-4R, or through other acceptable electronic means. If your withholding election is for an automatic withdrawal plan, you have the right to revoke your election at any time and any election you make will remain in effect until revoked by filing a new election.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld according to state regulations if, at the time of your distribution, your tax residency is within one of the mandatory withholding states.
*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.
22
Notes |
23
Notes |
24
![]() | ||||||||
Contact Us | americancentury.com | |||||||
Automated Information Line | 1-800-345-8765 | |||||||
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |||||||
Investors Using Advisors | 1-800-378-9878 | |||||||
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |||||||
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |||||||
Telecommunications Relay Service for the Deaf | 711 | |||||||
American Century World Mutual Funds, Inc. | ||||||||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||||||||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||||||||
©2023 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92631 2307 |
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Semiannual Report | |||||
May 31, 2023 | |||||
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 |
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Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2023. 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.
Year-to-Date Rebound Lifted Global Stock Returns
After ending 2022 on a disappointing note, global stocks generally rebounded in the first five months of 2023. This bounce back, which occurred despite relentless volatility and ongoing central bank rate hikes, led to six-month gains for most global stock indices.
After climbing to multidecade highs in mid- to late-2022, U.S. and European inflation moderated through the end of the reporting period. This dynamic, combined with mounting recession worries, prompted investors to recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to raise rates, and markets remained volatile.
Beginning in March, high-profile bank failures in the U.S. and Europe highlighted the growing risks to the global financial system and economic growth. Market volatility escalated, but quick action from U.S. and European regulators helped restore market order.
Still, heightened uncertainty surrounding the banking industry and credit availability further fueled recession fears. Those worries strengthened investor expectations for a near-term end to central bank tightening and potential rate cuts later in the year. In the eurozone, recession worries turned to recession reality, as revised data confirmed the region’s economy contracted in the fourth quarter of 2022 and the first quarter of 2023.
Despite slowing growth and ongoing volatility, most U.S. and global stock indices advanced for the period. Non-U.S. developed markets stocks modestly outperformed U.S. stocks. Meanwhile, global growth concerns and China’s uneven post-COVID-19 reopening weighed on emerging markets stocks, which modestly declined for the period.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of still-high inflation, tighter financial conditions, banking industry turbulence and recession risk. In addition, increasingly tense geopolitical considerations complicate the market backdrop.
We appreciate your confidence in us during these extraordinary times. American Century Investments has a long history of helping clients weather unpredictable and volatile markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
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Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 99.3% | ||||
Short-Term Investments | 3.2% | ||||
Other Assets and Liabilities | (2.5)% | ||||
Top Five Countries | % of net assets | ||||
United Kingdom | 20.0% | ||||
France | 13.1% | ||||
Japan | 10.9% | ||||
China | 5.4% | ||||
Canada | 5.2% |
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, 2022 to May 31, 2023.
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 mutual 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 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 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 12/1/22 | Ending Account Value 5/31/23 | Expenses Paid During Period(1) 12/1/22 - 5/31/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,037.10 | $5.54 | 1.09% | ||||||||||
I Class | $1,000 | $1,038.80 | $4.52 | 0.89% | ||||||||||
A Class | $1,000 | $1,035.60 | $6.80 | 1.34% | ||||||||||
C Class | $1,000 | $1,032.20 | $10.59 | 2.09% | ||||||||||
R Class | $1,000 | $1,034.60 | $8.07 | 1.59% | ||||||||||
R6 Class | $1,000 | $1,038.80 | $3.76 | 0.74% | ||||||||||
G Class | $1,000 | $1,043.30 | $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, 2023 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.3% | ||||||||
Australia — 2.8% | ||||||||
CSL Ltd. | 11,510 | $ | 2,292,289 | |||||
Canada — 5.2% | ||||||||
Canadian Pacific Kansas City Ltd. | 33,980 | 2,589,238 | ||||||
GFL Environmental, Inc. | 47,197 | 1,705,700 | ||||||
4,294,938 | ||||||||
China — 5.4% | ||||||||
H World Group Ltd., ADR(1) | 31,420 | 1,150,600 | ||||||
Li Ning Co. Ltd. | 255,000 | 1,370,120 | ||||||
Tencent Holdings Ltd. | 50,500 | 1,998,503 | ||||||
4,519,223 | ||||||||
Denmark — 4.3% | ||||||||
Novo Nordisk A/S, B Shares | 22,307 | 3,589,886 | ||||||
France — 13.1% | ||||||||
Air Liquide SA(2) | 11,131 | 1,865,030 | ||||||
Airbus SE | 12,220 | 1,604,795 | ||||||
EssilorLuxottica SA(2) | 10,230 | 1,852,685 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 2,950 | 2,579,267 | ||||||
Schneider Electric SE | 17,300 | 2,992,878 | ||||||
10,894,655 | ||||||||
Germany — 4.6% | ||||||||
Infineon Technologies AG | 54,445 | 2,026,933 | ||||||
Mercedes-Benz Group AG | 16,450 | 1,229,696 | ||||||
SAP SE | 4,560 | 597,933 | ||||||
3,854,562 | ||||||||
Hong Kong — 2.4% | ||||||||
AIA Group Ltd. | 207,200 | 1,991,854 | ||||||
India — 2.1% | ||||||||
HDFC Bank Ltd., ADR | 26,840 | 1,728,496 | ||||||
Indonesia — 2.7% | ||||||||
Bank Central Asia Tbk PT | 3,782,900 | 2,282,705 | ||||||
Ireland — 3.8% | ||||||||
ICON PLC(1) | 8,300 | 1,768,149 | ||||||
Kerry Group PLC, A Shares | 14,430 | 1,407,432 | ||||||
3,175,581 | ||||||||
Italy — 2.5% | ||||||||
Ferrari NV | 7,220 | 2,066,672 | ||||||
Japan — 10.9% | ||||||||
BayCurrent Consulting, Inc. | 41,900 | 1,531,497 | ||||||
Fast Retailing Co. Ltd. | 8,700 | 2,033,874 | ||||||
Keyence Corp. | 5,700 | 2,763,234 | ||||||
MonotaRO Co. Ltd. | 82,500 | 1,143,979 | ||||||
Terumo Corp. | 51,800 | 1,575,856 | ||||||
9,048,440 | ||||||||
Netherlands — 4.2% | ||||||||
Adyen NV(1) | 1,029 | 1,685,339 | ||||||
DSM-Firmenich AG(1) | 16,600 | 1,846,059 | ||||||
3,531,398 |
6
Shares | Value | |||||||
Spain — 3.8% | ||||||||
Cellnex Telecom SA | 34,730 | $ | 1,407,449 | |||||
Iberdrola SA | 145,854 | 1,781,143 | ||||||
3,188,592 | ||||||||
Sweden — 1.5% | ||||||||
Hexagon AB, B Shares | 106,640 | 1,238,869 | ||||||
Switzerland — 4.8% | ||||||||
Lonza Group AG | 4,310 | 2,703,254 | ||||||
Sika AG | 4,650 | 1,272,338 | ||||||
3,975,592 | ||||||||
Taiwan — 3.6% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 167,000 | 3,022,338 | ||||||
Thailand — 1.6% | ||||||||
CP ALL PCL | 702,700 | 1,286,671 | ||||||
United Kingdom — 20.0% | ||||||||
AstraZeneca PLC | 21,740 | 3,166,443 | ||||||
BP PLC | 236,170 | 1,326,808 | ||||||
Compass Group PLC | 57,080 | 1,564,231 | ||||||
HSBC Holdings PLC(2) | 296,000 | 2,175,706 | ||||||
London Stock Exchange Group PLC | 23,746 | 2,531,432 | ||||||
Melrose Industries PLC | 218,790 | 1,287,422 | ||||||
Reckitt Benckiser Group PLC | 23,530 | 1,829,728 | ||||||
Rentokil Initial PLC | 202,660 | 1,612,073 | ||||||
Segro PLC | 115,110 | 1,144,188 | ||||||
16,638,031 | ||||||||
TOTAL COMMON STOCKS (Cost $78,775,468) | 82,620,792 | |||||||
SHORT-TERM INVESTMENTS — 3.2% | ||||||||
Money Market Funds — 2.4% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 1,476 | 1,476 | ||||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) | 1,952,036 | 1,952,036 | ||||||
1,953,512 | ||||||||
Repurchase Agreements — 0.8% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 11/30/28 - 11/15/43, valued at $91,691), in a joint trading account at 5.01%, dated 5/31/23, due 6/1/23 (Delivery value $89,706) | 89,694 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 1.875%, 2/15/32, valued at $594,696), at 5.05%, dated 5/31/23, due 6/1/23 (Delivery value $583,082) | 583,000 | |||||||
672,694 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $2,626,207) | 2,626,206 | |||||||
TOTAL INVESTMENT SECURITIES — 102.5% (Cost $81,401,675) | 85,246,998 | |||||||
OTHER ASSETS AND LIABILITIES — (2.5)% | (2,039,255) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 83,207,743 |
7
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Health Care | 20.4% | ||||
Industrials | 17.4% | ||||
Financials | 14.8% | ||||
Consumer Discretionary | 14.5% | ||||
Information Technology | 11.5% | ||||
Materials | 6.0% | ||||
Consumer Staples | 5.5% | ||||
Communication Services | 4.1% | ||||
Utilities | 2.1% | ||||
Energy | 1.6% | ||||
Real Estate | 1.4% | ||||
Short-Term Investments | 3.2% | ||||
Other Assets and Liabilities | (2.5)% |
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 $3,929,150. 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 $4,138,261, which includes securities collateral of $2,186,225.
See Notes to Financial Statements.
8
Statement of Assets and Liabilities |
MAY 31, 2023 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $79,449,639) — including $3,929,150 of securities on loan | $ | 83,294,962 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $1,952,036) | 1,952,036 | ||||
Total investment securities, at value (cost of $81,401,675) | 85,246,998 | ||||
Foreign currency holdings, at value (cost of $12) | 12 | ||||
Receivable for capital shares sold | 45,496 | ||||
Dividends and interest receivable | 290,147 | ||||
Securities lending receivable | 1,914 | ||||
85,584,567 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 1,952,036 | ||||
Payable for capital shares redeemed | 380,022 | ||||
Accrued management fees | 44,186 | ||||
Distribution and service fees payable | 580 | ||||
2,376,824 | |||||
Net Assets | $ | 83,207,743 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 88,639,756 | |||
Distributable earnings (loss) | (5,432,013) | ||||
$ | 83,207,743 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $15,324,883 | 982,255 | $15.60 | ||||||||
I Class, $0.01 Par Value | $29,084,764 | 1,848,339 | $15.74 | ||||||||
A Class, $0.01 Par Value | $116,886 | 7,578 | $15.42 | ||||||||
C Class, $0.01 Par Value | $35,278 | 2,393 | $14.74 | ||||||||
R Class, $0.01 Par Value | $1,179,787 | 77,392 | $15.24 | ||||||||
R6 Class, $0.01 Par Value | $8,153,551 | 515,332 | $15.82 | ||||||||
G Class, $0.01 Par Value | $29,312,594 | 1,815,150 | $16.15 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except Class A, for which the maximum offering price per share was $16.36 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of Class A and Class C.
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $80,017) | $ | 837,480 | |||
Interest | 36,178 | ||||
Securities lending, net | 4,921 | ||||
878,579 | |||||
Expenses: | |||||
Management fees | 358,914 | ||||
Distribution and service fees: | |||||
A Class | 146 | ||||
C Class | 223 | ||||
R Class | 2,981 | ||||
Directors' fees and expenses | 1,335 | ||||
Other expenses | 135 | ||||
363,734 | |||||
Fees waived - G Class | (106,744) | ||||
256,990 | |||||
Net investment income (loss) | 621,589 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | (1,694,999) | ||||
Foreign currency translation transactions | (13,008) | ||||
(1,708,007) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 4,159,090 | ||||
Translation of assets and liabilities in foreign currencies | (835) | ||||
4,158,255 | |||||
Net realized and unrealized gain (loss) | 2,450,248 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 3,071,837 |
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 621,589 | $ | 661,481 | ||||
Net realized gain (loss) | (1,708,007) | (8,089,593) | ||||||
Change in net unrealized appreciation (depreciation) | 4,158,255 | (8,211,460) | ||||||
Net increase (decrease) in net assets resulting from operations | 3,071,837 | (15,639,572) | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (53,821) | (557,832) | ||||||
I Class | (171,794) | (488,383) | ||||||
A Class | (156) | (2,055) | ||||||
C Class | — | (1,520) | ||||||
R Class | — | (29,816) | ||||||
R6 Class | (40,405) | (17,151) | ||||||
G Class | (383,934) | (511,608) | ||||||
Decrease in net assets from distributions | (650,110) | (1,608,365) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (1,977,644) | 39,987,628 | ||||||
Net increase (decrease) in net assets | 444,083 | 22,739,691 | ||||||
Net Assets | ||||||||
Beginning of period | 82,763,660 | 60,023,969 | ||||||
End of period | $ | 83,207,743 | $ | 82,763,660 |
See Notes to Financial Statements.
11
Notes to Financial Statements |
MAY 31, 2023 (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 value of investments of the fund is determined by American Century Investment Management, Inc. (ACIM) (the investment advisor), as the valuation designee, pursuant to its valuation policies and procedures. The Board of Directors oversees the valuation designee and reviews its valuation policies and procedures at least annually.
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 valuation designee determines that the market price for a portfolio security is not readily available or is believed by the valuation designee to be unreliable, such security is valued at fair value as determined in good faith by the valuation designee, in accordance with its policies and procedures. Circumstances that may cause the fund to determine that market quotations are not available or reliable include, but are not limited to: when there is a significant event subsequent to the market quotation; trading in a security has been halted during the trading day; or trading in a security is insufficient or did not take place due to a closure or holiday.
The valuation designee 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; regulatory news, 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 valuation designee also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that it deems appropriate. The valuation designee 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 ACIM has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund's policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
13
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, 2023.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 1,952,036 | — | — | — | $ | 1,952,036 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 1,952,036 |
(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.
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%.
14
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2023 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 $112,198 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, 2023 were $27,476,469 and $27,433,465, respectively.
15
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2023 | Year ended November 30, 2022 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||||||
Sold | 151,212 | $ | 2,373,569 | 497,299 | $ | 8,113,623 | ||||||||
Issued in reinvestment of distributions | 3,584 | 52,535 | 28,000 | 542,364 | ||||||||||
Redeemed | (167,517) | (2,593,050) | (640,573) | (10,180,740) | ||||||||||
(12,721) | (166,946) | (115,274) | (1,524,753) | |||||||||||
I Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 223,875 | 3,376,444 | 1,955,399 | 30,447,471 | ||||||||||
Issued in reinvestment of distributions | 11,631 | 171,794 | 25,020 | 488,383 | ||||||||||
Redeemed | (599,531) | (9,113,513) | (714,654) | (10,372,273) | ||||||||||
(364,025) | (5,565,275) | 1,265,765 | 20,563,581 | |||||||||||
A Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 2,145 | 32,823 | 3,033 | 51,768 | ||||||||||
Issued in reinvestment of distributions | 11 | 156 | 107 | 2,055 | ||||||||||
Redeemed | (1,133) | (17,846) | (1,570) | (30,039) | ||||||||||
1,023 | 15,133 | 1,570 | 23,784 | |||||||||||
C Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 140 | 2,048 | 415 | 6,221 | ||||||||||
Issued in reinvestment of distributions | — | — | 82 | 1,520 | ||||||||||
Redeemed | (1,131) | (16,767) | (151) | (2,345) | ||||||||||
(991) | (14,719) | 346 | 5,396 | |||||||||||
R Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 14,981 | 228,477 | 34,143 | 527,632 | ||||||||||
Issued in reinvestment of distributions | — | — | 1,566 | 29,742 | ||||||||||
Redeemed | (12,487) | (192,173) | (19,203) | (299,833) | ||||||||||
2,494 | 36,304 | 16,506 | 257,541 | |||||||||||
R6 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 196,929 | 3,164,541 | 380,511 | 5,632,494 | ||||||||||
Issued in reinvestment of distributions | 2,723 | 40,405 | 875 | 17,151 | ||||||||||
Redeemed | (70,664) | (1,120,585) | (28,226) | (422,548) | ||||||||||
128,988 | 2,084,361 | 353,160 | 5,227,097 | |||||||||||
G Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||
Sold | 268,929 | 4,262,105 | 1,045,499 | 17,456,648 | ||||||||||
Issued in reinvestment of distributions | 25,426 | 383,934 | 25,645 | 511,608 | ||||||||||
Redeemed | (186,987) | (3,012,541) | (167,811) | (2,533,274) | ||||||||||
107,368 | 1,633,498 | 903,333 | 15,434,982 | |||||||||||
Net increase (decrease) | (137,864) | $ | (1,977,644) | 2,425,406 | $ | 39,987,628 |
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 | |||||||||||
Canada | $ | 1,705,700 | $ | 2,589,238 | — | ||||||
China | 1,150,600 | 3,368,623 | — | ||||||||
India | 1,728,496 | — | — | ||||||||
Ireland | 1,768,149 | 1,407,432 | — | ||||||||
Other Countries | — | 68,902,554 | — | ||||||||
Short-Term Investments | 1,953,512 | 672,694 | — | ||||||||
$ | 8,306,457 | $ | 76,940,541 | — |
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 | $ | 82,259,584 | |||
Gross tax appreciation of investments | $ | 8,348,594 | |||
Gross tax depreciation of investments | (5,361,180) | ||||
Net tax appreciation (depreciation) of investments | $ | 2,987,414 |
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, 2022, the fund had accumulated long-term capital losses of $(7,149,662), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
17
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $15.10 | 0.08 | 0.48 | 0.56 | (0.06) | — | (0.06) | $15.60 | 3.71% | 1.09%(4) | 1.09%(4) | 1.02%(4) | 1.02%(4) | 34% | $15,325 | ||||||||||||||||||||||||||||||||
2022 | $20.04 | 0.12 | (4.56) | (4.44) | — | (0.50) | (0.50) | $15.10 | (22.71)% | 1.10% | 1.10% | 0.59% | 0.59% | 51% | $15,028 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $15.25 | 0.09 | 0.49 | 0.58 | (0.09) | — | (0.09) | $15.74 | 3.88% | 0.89%(4) | 0.89%(4) | 1.22%(4) | 1.22%(4) | 34% | $29,085 | ||||||||||||||||||||||||||||||||
2022 | $20.19 | 0.11 | (4.55) | (4.44) | — | (0.50) | (0.50) | $15.25 | (22.59)% | 0.90% | 0.90% | 0.79% | 0.79% | 51% | $33,731 | ||||||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $14.91 | 0.06 | 0.47 | 0.53 | (0.02) | — | (0.02) | $15.42 | 3.56% | 1.34%(4) | 1.34%(4) | 0.77%(4) | 0.77%(4) | 34% | $117 | ||||||||||||||||||||||||||||||||
2022 | $19.85 | 0.07 | (4.51) | (4.44) | — | (0.50) | (0.50) | $14.91 | (22.94)% | 1.35% | 1.35% | 0.34% | 0.34% | 51% | $98 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $14.29 | (0.01) | 0.46 | 0.45 | — | — | — | $14.74 | 3.22% | 2.09%(4) | 2.09%(4) | 0.02%(4) | 0.02%(4) | 34% | $35 | ||||||||||||||||||||||||||||||||
2022 | $19.17 | (0.04) | (4.34) | (4.38) | — | (0.50) | (0.50) | $14.29 | (23.54)% | 2.10% | 2.10% | (0.41)% | (0.41)% | 51% | $48 | ||||||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $14.74 | 0.04 | 0.46 | 0.50 | — | — | — | $15.24 | 3.46% | 1.59%(4) | 1.59%(4) | 0.52%(4) | 0.52%(4) | 34% | $1,180 | ||||||||||||||||||||||||||||||||
2022 | $19.67 | 0.03 | (4.46) | (4.43) | — | (0.50) | (0.50) | $14.74 | (23.15)% | 1.60% | 1.60% | 0.09% | 0.09% | 51% | $1,104 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $15.34 | 0.12 | 0.47 | 0.59 | (0.11) | — | (0.11) | $15.82 | 3.88% | 0.74%(4) | 0.74%(4) | 1.37%(4) | 1.37%(4) | 34% | $8,154 | ||||||||||||||||||||||||||||||||
2022 | $20.30 | 0.05 | (4.49) | (4.44) | (0.02) | (0.50) | (0.52) | $15.34 | (22.44)% | 0.75% | 0.75% | 0.94% | 0.94% | 51% | $5,927 | ||||||||||||||||||||||||||||||||
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 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations*: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $15.71 | 0.17 | 0.49 | 0.66 | (0.22) | — | (0.22) | $16.15 | 4.33% | 0.00%(4)(6) | 0.74%(4) | 2.11%(4) | 1.37%(4) | 34% | $29,313 | ||||||||||||||||||||||||||||||||
2022 | $20.74 | 0.27 | (4.67) | (4.40) | (0.13) | (0.50) | (0.63) | $15.71 | (21.92)% | 0.01% | 0.75% | 1.68% | 0.94% | 51% | $26,828 | ||||||||||||||||||||||||||||||||
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, 2023 (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.
*The amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of the fund in relation to income earned and/or fluctuations in the fair value of the fund's investments.
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, including members of ACIM’s Investment Oversight Committee who are members of ACIM’s Investment Management and Global Analytics departments, conduct the day-to-day operation of the program pursuant to the program.
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 investments held by the Fund 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, 2022 through December 31, 2022. 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 at the IRS default rate of 10%.* 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.
You may elect a different withholding rate, or request zero withholding, by submitting an acceptable IRS Form W-4R election with your distribution request. You may notify us of your W-4R election by telephone, on our distribution forms, on IRS Form W-4R, or through other acceptable electronic means. If your withholding election is for an automatic withdrawal plan, you have the right to revoke your election at any time and any election you make will remain in effect until revoked by filing a new election.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld according to state regulations if, at the time of your distribution, your tax residency is within one of the mandatory withholding states.
*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. | ||||||||
©2023 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92637 2307 |
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Semiannual Report | |||||
May 31, 2023 | |||||
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 |
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Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2023. 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.
Year-to-Date Rebound Lifted Global Stock Returns
After ending 2022 on a disappointing note, global stocks generally rebounded in the first five months of 2023. This bounce back, which occurred despite relentless volatility and ongoing central bank rate hikes, led to six-month gains for most global stock indices.
After climbing to multidecade highs in mid- to late-2022, U.S. and European inflation moderated through the end of the reporting period. This dynamic, combined with mounting recession worries, prompted investors to recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to raise rates, and markets remained volatile.
Beginning in March, high-profile bank failures in the U.S. and Europe highlighted the growing risks to the global financial system and economic growth. Market volatility escalated, but quick action from U.S. and European regulators helped restore market order.
Still, heightened uncertainty surrounding the banking industry and credit availability further fueled recession fears. Those worries strengthened investor expectations for a near-term end to central bank tightening and potential rate cuts later in the year. In the eurozone, recession worries turned to recession reality, as revised data confirmed the region’s economy contracted in the fourth quarter of 2022 and the first quarter of 2023.
Despite slowing growth and ongoing volatility, most U.S. and global stock indices advanced for the period. Non-U.S. developed markets stocks modestly outperformed U.S. stocks. Meanwhile, global growth concerns and China’s uneven post-COVID-19 reopening weighed on emerging markets stocks, which modestly declined for the period.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of still-high inflation, tighter financial conditions, banking industry turbulence and recession risk. In addition, increasingly tense geopolitical considerations complicate the market backdrop.
We appreciate your confidence in us during these extraordinary times. American Century Investments has a long history of helping clients weather unpredictable and volatile markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
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Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 97.7% | ||||
Exchange-Traded Funds | 1.7% | ||||
Short-Term Investments | 1.8% | ||||
Other Assets and Liabilities | (1.2)% | ||||
Top Five Countries* | % of net assets | ||||
United States | 48.2% | ||||
Japan | 9.7% | ||||
Canada | 8.3% | ||||
United Kingdom | 3.8% | ||||
Taiwan | 3.4% |
*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, 2022 to May 31, 2023.
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 mutual 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 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 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 12/1/22 | Ending Account Value 5/31/23 | Expenses Paid During Period(1) 12/1/22 - 5/31/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $951.50 | $5.40 | 1.11% | ||||||||||
I Class | $1,000 | $952.20 | $4.43 | 0.91% | ||||||||||
A Class | $1,000 | $950.20 | $6.61 | 1.36% | ||||||||||
C Class | $1,000 | $946.90 | $10.24 | 2.11% | ||||||||||
R Class | $1,000 | $949.20 | $7.82 | 1.61% | ||||||||||
R6 Class | $1,000 | $952.90 | $3.70 | 0.76% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,019.40 | $5.59 | 1.11% | ||||||||||
I Class | $1,000 | $1,020.39 | $4.58 | 0.91% | ||||||||||
A Class | $1,000 | $1,018.15 | $6.84 | 1.36% | ||||||||||
C Class | $1,000 | $1,014.41 | $10.60 | 2.11% | ||||||||||
R Class | $1,000 | $1,016.90 | $8.10 | 1.61% | ||||||||||
R6 Class | $1,000 | $1,021.14 | $3.83 | 0.76% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
5
Schedule of Investments |
MAY 31, 2023 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 97.7% | ||||||||
Australia — 1.6% | ||||||||
carsales.com Ltd. | 47,918 | $ | 723,136 | |||||
IDP Education Ltd. | 12,678 | 179,742 | ||||||
Pinnacle Investment Management Group Ltd.(1) | 72,061 | 418,332 | ||||||
1,321,210 | ||||||||
Belgium — 1.0% | ||||||||
D'ieteren Group | 4,780 | 826,966 | ||||||
Brazil — 0.7% | ||||||||
TOTVS SA | 107,800 | 614,082 | ||||||
Canada — 8.3% | ||||||||
ATS Corp.(2) | 14,154 | 619,804 | ||||||
Boardwalk Real Estate Investment Trust | 20,026 | 891,618 | ||||||
Brookfield Infrastructure Corp., Class A | 14,869 | 685,461 | ||||||
Capstone Copper Corp.(1)(2) | 206,911 | 816,975 | ||||||
Element Fleet Management Corp. | 63,437 | 962,186 | ||||||
FirstService Corp. | 7,263 | 1,055,075 | ||||||
Kinaxis, Inc.(2) | 5,032 | 673,157 | ||||||
Stantec, Inc. | 20,650 | 1,195,494 | ||||||
6,899,770 | ||||||||
China — 1.3% | ||||||||
Bosideng International Holdings Ltd. | 436,000 | 181,019 | ||||||
Poly Property Services Co. Ltd., Class H | 90,800 | 430,333 | ||||||
Tongcheng Travel Holdings Ltd.(2) | 258,800 | 516,611 | ||||||
1,127,963 | ||||||||
Finland — 1.4% | ||||||||
Metso Oyj | 70,169 | 769,264 | ||||||
Valmet Oyj(1) | 12,954 | 381,940 | ||||||
1,151,204 | ||||||||
France — 1.0% | ||||||||
SPIE SA | 27,168 | 807,856 | ||||||
Germany — 2.7% | ||||||||
AIXTRON SE | 21,235 | 660,338 | ||||||
CTS Eventim AG & Co. KGaA | 9,349 | 630,524 | ||||||
KION Group AG | 14,843 | 520,941 | ||||||
SMA Solar Technology AG(2) | 3,840 | 414,170 | ||||||
2,225,973 | ||||||||
Hong Kong — 1.4% | ||||||||
Samsonite International SA(2) | 474,900 | 1,205,682 | ||||||
India — 1.2% | ||||||||
WNS Holdings Ltd., ADR(2) | 12,785 | 993,394 | ||||||
Ireland — 0.8% | ||||||||
AIB Group PLC | 156,641 | 647,542 | ||||||
Israel — 1.2% | ||||||||
Inmode Ltd.(2) | 17,200 | 543,004 | ||||||
Nova Ltd.(2) | 4,474 | 483,147 | ||||||
1,026,151 |
6
Shares | Value | |||||||
Italy — 2.2% | ||||||||
BPER Banca | 253,197 | $ | 651,237 | |||||
Eurogroup Laminations SpA(2) | 53,382 | 339,509 | ||||||
Interpump Group SpA | 16,299 | 879,705 | ||||||
1,870,451 | ||||||||
Japan — 9.7% | ||||||||
Asics Corp. | 44,800 | 1,196,740 | ||||||
BayCurrent Consulting, Inc. | 12,700 | 464,201 | ||||||
Fukuoka Financial Group, Inc. | 11,800 | 218,707 | ||||||
Goldwin, Inc. | 4,800 | 403,116 | ||||||
Invincible Investment Corp. | 2,044 | 869,242 | ||||||
Isetan Mitsukoshi Holdings Ltd.(1) | 48,200 | 488,398 | ||||||
Japan Airport Terminal Co. Ltd. | 13,600 | 634,271 | ||||||
JMDC, Inc. | 17,900 | 731,307 | ||||||
MatsukiyoCocokara & Co. | 13,700 | 733,353 | ||||||
Money Forward, Inc.(2) | 9,600 | 400,895 | ||||||
Nippon Gas Co. Ltd.(1) | 27,000 | 374,150 | ||||||
Taiyo Yuden Co. Ltd. | 16,000 | 496,798 | ||||||
TechnoPro Holdings, Inc.(1) | 12,600 | 272,999 | ||||||
Toyo Suisan Kaisha Ltd. | 17,900 | 783,361 | ||||||
8,067,538 | ||||||||
Mexico — 1.0% | ||||||||
Corp. Inmobiliaria Vesta SAB de CV | 96,751 | 306,350 | ||||||
Gentera SAB de CV | 479,793 | 516,437 | ||||||
822,787 | ||||||||
Netherlands — 0.8% | ||||||||
Basic-Fit NV(1)(2) | 16,612 | 636,273 | ||||||
Norway — 0.9% | ||||||||
Aker Solutions ASA | 239,357 | 785,013 | ||||||
South Korea — 1.4% | ||||||||
JYP Entertainment Corp. | 13,033 | 1,196,283 | ||||||
Spain — 1.0% | ||||||||
CIE Automotive SA | 15,416 | 441,184 | ||||||
Sacyr SA(1) | 133,902 | 401,953 | ||||||
843,137 | ||||||||
Sweden — 2.2% | ||||||||
Fortnox AB | 86,178 | 557,321 | ||||||
Nordnet AB publ | 30,738 | 431,028 | ||||||
Trelleborg AB, B Shares | 33,485 | 833,977 | ||||||
1,822,326 | ||||||||
Switzerland — 0.5% | ||||||||
Dufry AG(2) | 9,142 | 414,225 | ||||||
Taiwan — 3.4% | ||||||||
Airtac International Group | 27,464 | 885,302 | ||||||
ASPEED Technology, Inc. | 5,600 | 522,799 | ||||||
Lotes Co. Ltd. | 18,000 | 508,267 | ||||||
Poya International Co. Ltd. | 25,000 | 433,161 | ||||||
Wiwynn Corp. | 12,000 | 451,149 | ||||||
2,800,678 | ||||||||
United Kingdom — 3.8% | ||||||||
Golar LNG Ltd.(2) | 12,709 | 261,424 | ||||||
Intermediate Capital Group PLC | 49,272 | 855,208 |
7
Shares | Value | |||||||
QinetiQ Group PLC | 135,159 | $ | 604,618 | |||||
Rotork PLC | 190,466 | 761,549 | ||||||
Tritax Big Box REIT PLC | 386,375 | 673,982 | ||||||
3,156,781 | ||||||||
United States — 48.2% | ||||||||
ADMA Biologics, Inc.(2) | 93,505 | 380,565 | ||||||
Alphatec Holdings, Inc.(2) | 23,621 | 358,094 | ||||||
Antero Resources Corp.(2) | 21,228 | 433,263 | ||||||
ATI, Inc.(2) | 24,883 | 860,454 | ||||||
Avid Bioservices, Inc.(2) | 26,480 | 409,116 | ||||||
AZEK Co., Inc.(2) | 33,475 | 778,294 | ||||||
Bancorp, Inc.(2) | 4,897 | 151,121 | ||||||
BJ's Wholesale Club Holdings, Inc.(2) | 2,738 | 171,536 | ||||||
Bloomin' Brands, Inc. | 17,609 | 420,679 | ||||||
Bowlero Corp.(2) | 58,027 | 664,989 | ||||||
BRP Group, Inc., Class A(2) | 842 | 16,891 | ||||||
Ciena Corp.(2) | 8,563 | 400,235 | ||||||
Clean Harbors, Inc.(2) | 9,366 | 1,314,986 | ||||||
Commerce Bancshares, Inc. | 4,287 | 205,562 | ||||||
Commercial Metals Co. | 13,976 | 597,474 | ||||||
Construction Partners, Inc., Class A(2) | 16,462 | 455,504 | ||||||
Crocs, Inc.(2) | 9,403 | 1,055,769 | ||||||
Driven Brands Holdings, Inc.(2) | 26,638 | 661,422 | ||||||
elf Beauty, Inc.(2) | 7,603 | 790,864 | ||||||
Ensign Group, Inc. | 4,825 | 427,543 | ||||||
Evolent Health, Inc., Class A(2) | 30,273 | 882,155 | ||||||
Freshpet, Inc.(2) | 6,185 | 369,616 | ||||||
Graphic Packaging Holding Co. | 25,207 | 602,447 | ||||||
Guidewire Software, Inc.(2) | 8,038 | 666,993 | ||||||
GXO Logistics, Inc.(2) | 14,416 | 806,143 | ||||||
H&E Equipment Services, Inc. | 22,989 | 826,684 | ||||||
Hamilton Lane, Inc., Class A | 6,112 | 415,066 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 21,226 | 499,448 | ||||||
Harmony Biosciences Holdings, Inc.(2) | 11,973 | 414,026 | ||||||
Hayward Holdings, Inc.(2) | 37,716 | 409,596 | ||||||
Healthcare Services Group, Inc. | 39,127 | 528,606 | ||||||
HealthEquity, Inc.(2) | 10,965 | 600,882 | ||||||
Huron Consulting Group, Inc.(2) | 7,212 | 586,191 | ||||||
Inter Parfums, Inc. | 5,607 | 704,239 | ||||||
Jabil, Inc. | 5,493 | 491,733 | ||||||
JELD-WEN Holding, Inc.(2) | 33,744 | 441,709 | ||||||
Kinsale Capital Group, Inc. | 4,056 | 1,228,887 | ||||||
Lattice Semiconductor Corp.(2) | 9,694 | 788,219 | ||||||
Littelfuse, Inc. | 2,112 | 540,756 | ||||||
Manhattan Associates, Inc.(2) | 4,859 | 881,520 | ||||||
MGP Ingredients, Inc. | 5,519 | 524,636 | ||||||
Natera, Inc.(2) | 10,897 | 513,358 | ||||||
NOW, Inc.(2) | 58,151 | 516,962 | ||||||
O-I Glass, Inc.(2) | 38,777 | 803,459 | ||||||
Ollie's Bargain Outlet Holdings, Inc.(2) | 10,664 | 587,800 | ||||||
Onto Innovation, Inc.(2) | 5,450 | 585,058 | ||||||
Planet Fitness, Inc., Class A(2) | 3,197 | 204,416 |
8
Shares | Value | |||||||
Power Integrations, Inc. | 5,483 | $ | 473,731 | |||||
Pure Storage, Inc., Class A(2) | 17,930 | 516,205 | ||||||
R1 RCM, Inc.(2) | 42,763 | 694,899 | ||||||
RadNet, Inc.(2) | 36,502 | 1,056,368 | ||||||
RLI Corp. | 5,340 | 661,359 | ||||||
Ryman Hospitality Properties, Inc. | 10,983 | 1,007,471 | ||||||
scPharmaceuticals, Inc.(1)(2) | 31,581 | 335,390 | ||||||
Shift4 Payments, Inc., Class A(2) | 8,593 | 538,953 | ||||||
Sigma Lithium Corp.(1)(2) | 13,319 | 501,061 | ||||||
Silk Road Medical, Inc.(2) | 11,460 | 345,977 | ||||||
SouthState Corp. | 3,142 | 196,438 | ||||||
SPS Commerce, Inc.(2) | 5,289 | 824,026 | ||||||
Summit Materials, Inc., Class A(2) | 24,279 | 767,945 | ||||||
Surgery Partners, Inc.(2) | 12,497 | 468,388 | ||||||
Tenable Holdings, Inc.(2) | 20,177 | 827,055 | ||||||
Terreno Realty Corp. | 6,682 | 409,807 | ||||||
Toll Brothers, Inc. | 16,026 | 1,084,960 | ||||||
Transocean Ltd.(2) | 127,044 | 726,692 | ||||||
Trex Co., Inc.(2) | 7,357 | 377,782 | ||||||
Weatherford International PLC(2) | 13,231 | 746,758 | ||||||
Wintrust Financial Corp. | 2,968 | 188,676 | ||||||
XPO, Inc.(2) | 11,452 | 537,442 | ||||||
40,262,349 | ||||||||
TOTAL COMMON STOCKS (Cost $75,266,673) | 81,525,634 | |||||||
EXCHANGE-TRADED FUNDS — 1.7% | ||||||||
Schwab International Small-Cap Equity ETF(1) | 22,525 | 735,892 | ||||||
Schwab US Small-Cap ETF | 17,373 | 703,259 | ||||||
TOTAL EXCHANGE-TRADED FUNDS (Cost $1,429,281) | 1,439,151 | |||||||
SHORT-TERM INVESTMENTS — 1.8% | ||||||||
Money Market Funds — 1.8% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) (Cost $1,465,567) | 1,465,567 | 1,465,567 | ||||||
TOTAL INVESTMENT SECURITIES — 101.2% (Cost $78,161,521) | 84,430,352 | |||||||
OTHER ASSETS AND LIABILITIES — (1.2)% | (974,750) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 83,455,602 |
9
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Industrials | 23.4% | ||||
Information Technology | 15.5% | ||||
Consumer Discretionary | 13.0% | ||||
Financials | 10.7% | ||||
Health Care | 9.8% | ||||
Real Estate | 6.8% | ||||
Materials | 5.9% | ||||
Consumer Staples | 4.8% | ||||
Energy | 3.5% | ||||
Communication Services | 3.1% | ||||
Utilities | 1.2% | ||||
Exchange-Traded Funds | 1.7% | ||||
Short-Term Investments | 1.8% | ||||
Other Assets and Liabilities | (1.2)% |
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
ADR | – | American Depositary Receipt |
(1)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $2,832,405. 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 $3,005,033, which includes securities collateral of $1,539,466.
See Notes to Financial Statements.
10
Statement of Assets and Liabilities |
MAY 31, 2023 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $76,695,954) — including $2,832,405 of securities on loan | $ | 82,964,785 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $1,465,567) | 1,465,567 | ||||
Total investment securities, at value (cost of $78,161,521) | 84,430,352 | ||||
Foreign currency holdings, at value (cost of $24) | 24 | ||||
Receivable for investments sold | 1,646,981 | ||||
Receivable for capital shares sold | 29,459 | ||||
Dividends and interest receivable | 104,078 | ||||
Securities lending receivable | 4,806 | ||||
Other assets | 1,422 | ||||
86,217,122 | |||||
Liabilities | |||||
Disbursements in excess of demand deposit cash | 36,623 | ||||
Payable for collateral received for securities on loan | 1,465,567 | ||||
Payable for investments purchased | 1,166,088 | ||||
Payable for capital shares redeemed | 20,487 | ||||
Accrued management fees | 70,904 | ||||
Distribution and service fees payable | 1,851 | ||||
2,761,520 | |||||
Net Assets | $ | 83,455,602 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 94,273,698 | |||
Distributable earnings (loss) | (10,818,096) | ||||
$ | 83,455,602 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $38,210,376 | 2,489,862 | $15.35 | ||||||||
I Class, $0.01 Par Value | $22,296,947 | 1,432,807 | $15.56 | ||||||||
A Class, $0.01 Par Value | $3,106,388 | 206,051 | $15.08 | ||||||||
C Class, $0.01 Par Value | $506,540 | 35,959 | $14.09 | ||||||||
R Class, $0.01 Par Value | $1,657,711 | 112,421 | $14.75 | ||||||||
R6 Class, $0.01 Par Value | $17,677,640 | 1,124,328 | $15.72 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except Class A, for which the maximum offering price per share was $16.00 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of Class A and Class C.
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $42,339) | $ | 474,704 | |||
Interest | 24,681 | ||||
Securities lending, net | 20,857 | ||||
520,242 | |||||
Expenses: | |||||
Management fees | 421,018 | ||||
Distribution and service fees: | |||||
A Class | 4,501 | ||||
C Class | 2,556 | ||||
R Class | 4,501 | ||||
Directors' fees and expenses | 1,387 | ||||
Other expenses | 2,733 | ||||
436,696 | |||||
Net investment income (loss) | 83,546 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | (3,361,182) | ||||
Foreign currency translation transactions | 16,964 | ||||
(3,344,218) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | (647,557) | ||||
Translation of assets and liabilities in foreign currencies | (1,487) | ||||
(649,044) | |||||
Net realized and unrealized gain (loss) | (3,993,262) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (3,909,716) |
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 83,546 | $ | 191,405 | ||||
Net realized gain (loss) | (3,344,218) | (12,817,895) | ||||||
Change in net unrealized appreciation (depreciation) | (649,044) | (6,760,098) | ||||||
Net increase (decrease) in net assets resulting from operations | (3,909,716) | (19,386,588) | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (92,695) | (6,164,341) | ||||||
I Class | (98,318) | (1,703,359) | ||||||
A Class | — | (45,507) | ||||||
C Class | — | (26,824) | ||||||
R Class | — | (284,541) | ||||||
R6 Class | (88,224) | (2,350,107) | ||||||
Decrease in net assets from distributions | (279,237) | (10,574,679) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 6,087,066 | 40,304,064 | ||||||
Net increase (decrease) in net assets | 1,898,113 | 10,342,797 | ||||||
Net Assets | ||||||||
Beginning of period | 81,557,489 | 71,214,692 | ||||||
End of period | $ | 83,455,602 | $ | 81,557,489 |
See Notes to Financial Statements.
13
Notes to Financial Statements |
MAY 31, 2023 (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 value of investments of the fund is determined by American Century Investment Management, Inc. (ACIM) (the investment advisor), as the valuation designee, pursuant to its valuation policies and procedures. The Board of Directors oversees the valuation designee and reviews its valuation policies and procedures at least annually.
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 valuation designee determines that the market price for a portfolio security is not readily available or is believed by the valuation designee to be unreliable, such security is valued at fair value as determined in good faith by the valuation designee, in accordance with its policies and procedures. Circumstances that may cause the fund to determine that market quotations are not available or reliable include, but are not limited to: when there is a significant event subsequent to the market quotation; trading in a security has been halted during the trading day; or trading in a security is insufficient or did not take place due to a closure or holiday.
The valuation designee 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; regulatory news, 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 valuation designee also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that it deems appropriate. The valuation designee 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.
14
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 ACIM has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund's policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
15
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, 2023.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 1,424,842 | — | — | — | $ | 1,424,842 | ||||||||||
Exchange-Traded Funds | 40,725 | — | — | — | 40,725 | ||||||||||||
Total Borrowings | $ | 1,465,567 | — | — | — | $ | 1,465,567 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 1,465,567 |
(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.
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% |
16
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2023 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, 2023 were $61,299,152 and $53,621,564, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2023 | Year ended November 30, 2022 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||
Sold | 336,340 | $ | 5,401,232 | 1,143,311 | $ | 20,740,907 | ||||||||
Issued in reinvestment of distributions | 5,811 | 91,465 | 290,679 | 6,086,815 | ||||||||||
Redeemed | (280,610) | (4,458,951) | (683,057) | (11,937,507) | ||||||||||
61,541 | 1,033,746 | 750,933 | 14,890,215 | |||||||||||
I Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 188,163 | 3,060,482 | 1,327,532 | 23,040,596 | ||||||||||
Issued in reinvestment of distributions | 6,164 | 98,318 | 80,309 | 1,703,359 | ||||||||||
Redeemed | (324,095) | (5,335,715) | (283,305) | (4,921,367) | ||||||||||
(129,768) | (2,176,915) | 1,124,536 | 19,822,588 | |||||||||||
A Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 273,201 | 4,179,817 | 9,891 | 152,577 | ||||||||||
Issued in reinvestment of distributions | — | — | 2,209 | 45,507 | ||||||||||
Redeemed | (91,059) | (1,492,411) | (1,086) | (22,533) | ||||||||||
182,142 | 2,687,406 | 11,014 | 175,551 | |||||||||||
C Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 12,176 | 176,797 | 30,786 | 466,443 | ||||||||||
Issued in reinvestment of distributions | — | — | 1,378 | 26,824 | ||||||||||
Redeemed | (2,528) | (35,718) | (13,445) | (200,836) | ||||||||||
9,648 | 141,079 | 18,719 | 292,431 | |||||||||||
R Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 21,144 | 327,780 | 47,236 | 800,325 | ||||||||||
Issued in reinvestment of distributions | — | — | 14,060 | 284,298 | ||||||||||
Redeemed | (24,079) | (370,109) | (26,072) | (459,635) | ||||||||||
(2,935) | (42,329) | 35,224 | 624,988 | |||||||||||
R6 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 323,933 | 5,262,197 | 330,061 | 5,851,718 | ||||||||||
Issued in reinvestment of distributions | 5,476 | 88,224 | 109,716 | 2,350,107 | ||||||||||
Redeemed | (54,544) | (906,342) | (212,858) | (3,703,534) | ||||||||||
274,865 | 4,444,079 | 226,919 | 4,498,291 | |||||||||||
Net increase (decrease) | 395,493 | $ | 6,087,066 | 2,167,345 | $ | 40,304,064 |
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 | — | $ | 1,321,210 | — | |||||||
Belgium | — | 826,966 | — | ||||||||
Brazil | — | 614,082 | — | ||||||||
Canada | $ | 1,305,265 | 5,594,505 | — | |||||||
China | — | 1,127,963 | — | ||||||||
Finland | — | 1,151,204 | — | ||||||||
France | — | 807,856 | — | ||||||||
Germany | — | 2,225,973 | — | ||||||||
Hong Kong | — | 1,205,682 | — | ||||||||
Ireland | — | 647,542 | — | ||||||||
Italy | — | 1,870,451 | — | ||||||||
Japan | — | 8,067,538 | — | ||||||||
Mexico | — | 822,787 | — | ||||||||
Netherlands | — | 636,273 | — | ||||||||
Norway | — | 785,013 | — | ||||||||
South Korea | — | 1,196,283 | — | ||||||||
Spain | — | 843,137 | — | ||||||||
Sweden | — | 1,822,326 | — | ||||||||
Switzerland | — | 414,225 | — | ||||||||
Taiwan | — | 2,800,678 | — | ||||||||
United Kingdom | 261,424 | 2,895,357 | — | ||||||||
Other Countries | 42,281,894 | — | — | ||||||||
Exchange-Traded Funds | 1,439,151 | — | — | ||||||||
Short-Term Investments | 1,465,567 | — | — | ||||||||
$ | 46,753,301 | $ | 37,677,051 | — |
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.
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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 | $ | 78,952,187 | |||
Gross tax appreciation of investments | $ | 8,888,630 | |||
Gross tax depreciation of investments | (3,410,465) | ||||
Net tax appreciation (depreciation) of investments | $ | 5,478,165 |
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, 2022, the fund had accumulated short-term capital losses of $(12,814,946), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations*: | 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 | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $16.17 | 0.01 | (0.79) | (0.78) | (0.04) | — | (0.04) | $15.35 | (4.85)% | 1.11%(4) | 0.10%(4) | 63% | $38,210 | ||||||||||||||||||||||||||||
2022 | $24.94 | 0.03 | (5.23) | (5.20) | (0.04) | (3.53) | (3.57) | $16.17 | (24.11)% | 1.11% | 0.17% | 115% | $39,261 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $16.41 | 0.02 | (0.80) | (0.78) | (0.07) | — | (0.07) | $15.56 | (4.78)% | 0.91%(4) | 0.30%(4) | 63% | $22,297 | ||||||||||||||||||||||||||||
2022 | $25.27 | 0.06 | (5.30) | (5.24) | (0.09) | (3.53) | (3.62) | $16.41 | (23.98)% | 0.91% | 0.37% | 115% | $25,641 | ||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $15.87 | (0.02) | (0.77) | (0.79) | — | — | — | $15.08 | (4.98)% | 1.36%(4) | (0.15)%(4) | 63% | $3,106 | ||||||||||||||||||||||||||||
2022 | $24.55 | (0.01) | (5.14) | (5.15) | — | (3.53) | (3.53) | $15.87 | (24.28)% | 1.36% | (0.08)% | 115% | $379 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $14.88 | (0.07) | (0.72) | (0.79) | — | — | — | $14.09 | (5.31)% | 2.11%(4) | (0.90)%(4) | 63% | $507 | ||||||||||||||||||||||||||||
2022 | $23.41 | (0.13) | (4.87) | (5.00) | — | (3.53) | (3.53) | $14.88 | (24.91)% | 2.11% | (0.83)% | 115% | $392 | ||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $15.54 | (0.03) | (0.76) | (0.79) | — | — | — | $14.75 | (5.08)% | 1.61%(4) | (0.40)%(4) | 63% | $1,658 | ||||||||||||||||||||||||||||
2022 | $24.17 | (0.06) | (5.04) | (5.10) | — | (3.53) | (3.53) | $15.54 | (24.49)% | 1.61% | (0.33)% | 115% | $1,792 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $16.59 | 0.04 | (0.82) | (0.78) | (0.09) | — | (0.09) | $15.72 | (4.71)% | 0.76%(4) | 0.45%(4) | 63% | $17,678 | ||||||||||||||||||||||||||||
2022 | $25.51 | 0.09 | (5.35) | (5.26) | (0.13) | (3.53) | (3.66) | $16.59 | (23.87)% | 0.76% | 0.52% | 115% | $14,092 | ||||||||||||||||||||||||||||
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 |
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, 2023 (unaudited).
(4)Annualized.
(5)Per-share amount was less than $0.005.
*The amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of the fund in relation to income earned and/or fluctuations in the fair value of the fund's investments.
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, including members of ACIM’s Investment Oversight Committee who are members of ACIM’s Investment Management and Global Analytics departments, conduct the day-to-day operation of the program pursuant to the program.
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 investments held by the Fund 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, 2022 through December 31, 2022. 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 at the IRS default rate of 10%.* 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.
You may elect a different withholding rate, or request zero withholding, by submitting an acceptable IRS Form W-4R election with your distribution request. You may notify us of your W-4R election by telephone, on our distribution forms, on IRS Form W-4R, or through other acceptable electronic means. If your withholding election is for an automatic withdrawal plan, you have the right to revoke your election at any time and any election you make will remain in effect until revoked by filing a new election.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld according to state regulations if, at the time of your distribution, your tax residency is within one of the mandatory withholding states.
*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 |
27
Notes |
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Contact Us | americancentury.com | |||||||
Automated Information Line | 1-800-345-8765 | |||||||
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |||||||
Investors Using Advisors | 1-800-378-9878 | |||||||
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |||||||
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |||||||
Telecommunications Relay Service for the Deaf | 711 | |||||||
American Century World Mutual Funds, Inc. | ||||||||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||||||||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||||||||
©2023 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92638 2307 |
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Semiannual Report | |||||
May 31, 2023 | |||||
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 |
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Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2023. 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.
Year-to-Date Rebound Lifted Global Stock Returns
After ending 2022 on a disappointing note, global stocks generally rebounded in the first five months of 2023. This bounce back, which occurred despite relentless volatility and ongoing central bank rate hikes, led to six-month gains for most global stock indices.
After climbing to multidecade highs in mid- to late-2022, U.S. and European inflation moderated through the end of the reporting period. This dynamic, combined with mounting recession worries, prompted investors to recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to raise rates, and markets remained volatile.
Beginning in March, high-profile bank failures in the U.S. and Europe highlighted the growing risks to the global financial system and economic growth. Market volatility escalated, but quick action from U.S. and European regulators helped restore market order.
Still, heightened uncertainty surrounding the banking industry and credit availability further fueled recession fears. Those worries strengthened investor expectations for a near-term end to central bank tightening and potential rate cuts later in the year. In the eurozone, recession worries turned to recession reality, as revised data confirmed the region’s economy contracted in the fourth quarter of 2022 and the first quarter of 2023.
Despite slowing growth and ongoing volatility, most U.S. and global stock indices advanced for the period. Non-U.S. developed markets stocks modestly outperformed U.S. stocks. Meanwhile, global growth concerns and China’s uneven post-COVID-19 reopening weighed on emerging markets stocks, which modestly declined for the period.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of still-high inflation, tighter financial conditions, banking industry turbulence and recession risk. In addition, increasingly tense geopolitical considerations complicate the market backdrop.
We appreciate your confidence in us during these extraordinary times. American Century Investments has a long history of helping clients weather unpredictable and volatile markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
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Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 99.1% | ||||
Short-Term Investments | 0.9% | ||||
Other Assets and Liabilities | —* | ||||
*Category is less than 0.05% of total net assets. | |||||
Top Five Countries | % of net assets | ||||
France | 18.8% | ||||
United Kingdom | 16.0% | ||||
Japan | 11.8% | ||||
Switzerland | 6.9% | ||||
Netherlands | 6.7% |
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, 2022 to May 31, 2023.
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 mutual 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 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 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 12/1/22 | Ending Account Value 5/31/23 | Expenses Paid During Period(1) 12/1/22 - 5/31/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,060.20 | $6.42 | 1.25% | ||||||||||
I Class | $1,000 | $1,060.70 | $5.39 | 1.05% | ||||||||||
Y Class | $1,000 | $1,061.60 | $4.63 | 0.90% | ||||||||||
A Class | $1,000 | $1,059.00 | $7.70 | 1.50% | ||||||||||
C Class | $1,000 | $1,055.30 | $11.53 | 2.25% | ||||||||||
R Class | $1,000 | $1,057.70 | $8.98 | 1.75% | ||||||||||
R5 Class | $1,000 | $1,061.70 | $5.40 | 1.05% | ||||||||||
R6 Class | $1,000 | $1,061.70 | $4.63 | 0.90% | ||||||||||
G Class | $1,000 | $1,067.60 | $0.10 | 0.02% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,018.70 | $6.29 | 1.25% | ||||||||||
I Class | $1,000 | $1,019.70 | $5.29 | 1.05% | ||||||||||
Y Class | $1,000 | $1,020.44 | $4.53 | 0.90% | ||||||||||
A Class | $1,000 | $1,017.45 | $7.54 | 1.50% | ||||||||||
C Class | $1,000 | $1,013.71 | $11.30 | 2.25% | ||||||||||
R Class | $1,000 | $1,016.21 | $8.80 | 1.75% | ||||||||||
R5 Class | $1,000 | $1,019.70 | $5.29 | 1.05% | ||||||||||
R6 Class | $1,000 | $1,020.44 | $4.53 | 0.90% | ||||||||||
G Class | $1,000 | $1,024.83 | $0.10 | 0.02% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
5
Schedule of Investments |
MAY 31, 2023 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.1% | ||||||||
Australia — 3.1% | ||||||||
CSL Ltd. | 280,520 | $ | 55,867,320 | |||||
NEXTDC Ltd.(1) | 3,327,570 | 27,467,912 | ||||||
83,335,232 | ||||||||
Belgium — 1.0% | ||||||||
KBC Group NV | 420,750 | 27,642,914 | ||||||
Canada — 4.9% | ||||||||
Aritzia, Inc.(1)(2) | 568,920 | 14,571,896 | ||||||
Canadian Pacific Kansas City Ltd. | 574,420 | 43,770,169 | ||||||
Element Fleet Management Corp. | 1,621,080 | 24,587,873 | ||||||
First Quantum Minerals Ltd. | 752,870 | 15,772,834 | ||||||
GFL Environmental, Inc. | 956,626 | 34,572,464 | ||||||
133,275,236 | ||||||||
China — 1.6% | ||||||||
H World Group Ltd., ADR(1) | 421,060 | 15,419,217 | ||||||
Li Ning Co. Ltd. | 3,181,500 | 17,094,263 | ||||||
Tencent Holdings Ltd. | 287,300 | 11,369,701 | ||||||
43,883,181 | ||||||||
Denmark — 4.5% | ||||||||
Novo Nordisk A/S, B Shares | 713,668 | 114,851,231 | ||||||
Vestas Wind Systems A/S(1) | 285,620 | 8,135,198 | ||||||
122,986,429 | ||||||||
Finland — 0.1% | ||||||||
Neste Oyj | 108,190 | 4,087,562 | ||||||
France — 18.8% | ||||||||
Air Liquide SA | 320,602 | 53,717,747 | ||||||
Airbus SE | 311,040 | 40,847,419 | ||||||
Arkema SA | 172,260 | 15,046,816 | ||||||
Bureau Veritas SA | 742,119 | 18,859,295 | ||||||
Edenred | 611,657 | 39,371,806 | ||||||
EssilorLuxottica SA(2) | 118,190 | 21,404,580 | ||||||
Hermes International | 10,430 | 21,275,358 | ||||||
L'Oreal SA | 83,820 | 35,887,196 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 112,830 | 98,650,405 | ||||||
Pernod Ricard SA | 150,850 | 32,676,947 | ||||||
Safran SA | 202,150 | 29,361,211 | ||||||
Schneider Electric SE | 347,100 | 60,047,863 | ||||||
Thales SA | 153,920 | 21,453,895 | ||||||
Valeo SA(2) | 1,079,190 | 20,767,852 | ||||||
509,368,390 | ||||||||
Germany — 6.2% | ||||||||
adidas AG | 60,130 | 9,776,100 | ||||||
HUGO BOSS AG | 284,050 | 19,347,742 | ||||||
Infineon Technologies AG | 957,821 | 35,658,720 | ||||||
Mercedes-Benz Group AG | 367,820 | 27,495,849 | ||||||
Puma SE | 330,200 | 15,781,694 | ||||||
SAP SE | 233,090 | 30,564,094 |
6
Shares | Value | |||||||
Symrise AG | 195,810 | $ | 20,969,810 | |||||
Zalando SE(1) | 302,920 | 8,808,854 | ||||||
168,402,863 | ||||||||
Hong Kong — 3.1% | ||||||||
AIA Group Ltd. | 5,862,000 | 56,352,561 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 331,800 | 12,151,194 | ||||||
Techtronic Industries Co. Ltd. | 1,607,500 | 14,886,770 | ||||||
83,390,525 | ||||||||
India — 0.7% | ||||||||
HDFC Bank Ltd. | 939,000 | 18,233,646 | ||||||
Indonesia — 0.7% | ||||||||
Bank Central Asia Tbk PT | 32,789,000 | 19,785,778 | ||||||
Ireland — 3.7% | ||||||||
Bank of Ireland Group PLC | 1,446,330 | 13,667,451 | ||||||
CRH PLC | 507,000 | 23,992,570 | ||||||
ICON PLC(1) | 124,700 | 26,564,841 | ||||||
Kerry Group PLC, A Shares | 384,390 | 37,491,528 | ||||||
101,716,390 | ||||||||
Italy — 2.7% | ||||||||
Ferrari NV | 196,680 | 56,298,197 | ||||||
Prysmian SpA | 480,000 | 17,852,924 | ||||||
74,151,121 | ||||||||
Japan — 11.8% | ||||||||
BayCurrent Consulting, Inc. | 983,900 | 35,962,778 | ||||||
Fast Retailing Co. Ltd. | 149,900 | 35,043,417 | ||||||
Hoya Corp. | 263,500 | 33,035,171 | ||||||
JMDC, Inc. | 462,500 | 18,895,510 | ||||||
Keyence Corp. | 130,000 | 63,021,128 | ||||||
Lasertec Corp. | 118,700 | 18,637,457 | ||||||
MonotaRO Co. Ltd. | 2,052,500 | 28,460,804 | ||||||
Murata Manufacturing Co. Ltd. | 402,100 | 23,501,195 | ||||||
Obic Co. Ltd. | 161,000 | 26,042,806 | ||||||
Seven & i Holdings Co. Ltd. | 443,900 | 18,582,630 | ||||||
Terumo Corp. | 657,000 | 19,987,209 | ||||||
321,170,105 | ||||||||
Netherlands — 6.7% | ||||||||
Adyen NV(1) | 22,242 | 36,428,861 | ||||||
ASML Holding NV | 130,230 | 94,198,788 | ||||||
DSM-Firmenich AG(1) | 260,659 | 28,987,465 | ||||||
Heineken NV | 217,830 | 22,039,701 | ||||||
181,654,815 | ||||||||
Singapore — 0.4% | ||||||||
Sea Ltd., ADR(1) | 168,950 | 9,699,419 | ||||||
Spain — 3.3% | ||||||||
Cellnex Telecom SA | 1,019,566 | 41,318,373 | ||||||
Iberdrola SA | 3,880,272 | 47,385,182 | ||||||
88,703,555 | ||||||||
Sweden — 1.5% | ||||||||
Epiroc AB, A Shares | 1,006,060 | 17,671,473 | ||||||
Hexagon AB, B Shares | 1,885,540 | 21,904,878 | ||||||
39,576,351 | ||||||||
Switzerland — 6.9% | ||||||||
Alcon, Inc. | 431,999 | 33,621,025 |
7
Shares | Value | |||||||
Julius Baer Group Ltd. | 283,060 | $ | 17,383,753 | |||||
Lonza Group AG | 80,500 | 50,490,025 | ||||||
On Holding AG, Class A(1)(2) | 520,330 | 14,283,058 | ||||||
Sika AG | 130,139 | 35,608,766 | ||||||
Zurich Insurance Group AG | 74,040 | 34,664,183 | ||||||
186,050,810 | ||||||||
Taiwan — 0.8% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,165,000 | 21,083,974 | ||||||
Thailand — 0.6% | ||||||||
Kasikornbank PCL | 4,108,400 | 15,281,639 | ||||||
United Kingdom — 16.0% | ||||||||
Ashtead Group PLC | 321,020 | 19,605,833 | ||||||
AstraZeneca PLC | 659,790 | 96,098,766 | ||||||
BP PLC | 4,031,100 | 22,646,807 | ||||||
Compass Group PLC | 1,053,310 | 28,865,099 | ||||||
Haleon PLC | 3,432,360 | 13,577,422 | ||||||
Halma PLC | 614,600 | 18,445,779 | ||||||
HSBC Holdings PLC(2) | 6,703,600 | 49,273,864 | ||||||
London Stock Exchange Group PLC | 542,015 | 57,781,270 | ||||||
Melrose Industries PLC | 3,423,760 | 20,146,372 | ||||||
NatWest Group PLC | 2,967,908 | 9,616,554 | ||||||
Reckitt Benckiser Group PLC | 539,831 | 41,978,074 | ||||||
Rentokil Initial PLC | 2,264,340 | 18,011,853 | ||||||
Segro PLC | 1,397,050 | 13,886,605 | ||||||
Whitbread PLC | 573,526 | 23,524,718 | ||||||
433,459,016 | ||||||||
TOTAL COMMON STOCKS (Cost $2,174,570,917) | 2,686,938,951 | |||||||
SHORT-TERM INVESTMENTS — 0.9% | ||||||||
Money Market Funds — 0.2% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) | 4,359,255 | 4,359,255 | ||||||
Repurchase Agreements — 0.7% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 11/30/28 - 11/15/43, valued at $2,596,372), in a joint trading account at 5.01%, dated 5/31/23, due 6/1/23 (Delivery value $2,540,168) | 2,539,815 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.625%, 3/31/30, valued at $16,847,413), at 5.05%, dated 5/31/23, due 6/1/23 (Delivery value $16,519,317) | 16,517,000 | |||||||
19,056,815 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $23,416,070) | 23,416,070 | |||||||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $2,197,986,987) | 2,710,355,021 | |||||||
OTHER ASSETS AND LIABILITIES† | 67,622 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 2,710,422,643 |
8
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Health Care | 17.2% | ||||
Financials | 15.9% | ||||
Consumer Discretionary | 15.8% | ||||
Industrials | 15.8% | ||||
Information Technology | 14.1% | ||||
Consumer Staples | 7.5% | ||||
Materials | 7.3% | ||||
Communication Services | 2.3% | ||||
Utilities | 1.8% | ||||
Energy | 0.9% | ||||
Real Estate | 0.5% | ||||
Short-Term Investments | 0.9% | ||||
Other Assets and Liabilities | —* |
*Category is less than 0.05% of total net assets.
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 $58,567,811. 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 $62,994,363, which includes securities collateral of $58,635,108.
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2023 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $2,193,627,732) — including $58,567,811 of securities on loan | $ | 2,705,995,766 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $4,359,255) | 4,359,255 | ||||
Total investment securities, at value (cost of $2,197,986,987) | 2,710,355,021 | ||||
Foreign currency holdings, at value (cost of $508,025) | 506,560 | ||||
Receivable for investments sold | 4,716,371 | ||||
Receivable for capital shares sold | 1,686,997 | ||||
Dividends and interest receivable | 12,248,006 | ||||
Securities lending receivable | 46,491 | ||||
Other assets | 67,912 | ||||
2,729,627,358 | |||||
Liabilities | |||||
Disbursements in excess of demand deposit cash | 4,569 | ||||
Payable for collateral received for securities on loan | 4,359,255 | ||||
Payable for investments purchased | 7,678,028 | ||||
Payable for capital shares redeemed | 1,626,470 | ||||
Accrued management fees | 1,411,510 | ||||
Distribution and service fees payable | 18,518 | ||||
Accrued foreign taxes | 727,711 | ||||
Accrued IRS compliance fees | 3,201,600 | ||||
Accrued other expenses | 177,054 | ||||
19,204,715 | |||||
Net Assets | $ | 2,710,422,643 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 2,355,840,126 | |||
Distributable earnings (loss) | 354,582,517 | ||||
$ | 2,710,422,643 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $938,423,927 | 79,544,798 | $11.80 | ||||||||
I Class, $0.01 Par Value | $267,937,764 | 22,890,664 | $11.71 | ||||||||
Y Class, $0.01 Par Value | $48,263,626 | 4,116,624 | $11.72 | ||||||||
A Class, $0.01 Par Value | $67,562,490 | 5,700,341 | $11.85 | ||||||||
C Class, $0.01 Par Value | $664,437 | 60,081 | $11.06 | ||||||||
R Class, $0.01 Par Value | $7,326,411 | 614,449 | $11.92 | ||||||||
R5 Class, $0.01 Par Value | $7,414 | 633 | $11.71 | ||||||||
R6 Class, $0.01 Par Value | $24,125,688 | 2,059,910 | $11.71 | ||||||||
G Class, $0.01 Par Value | $1,356,110,886 | 114,475,541 | $11.85 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except Class A, for which the maximum offering price per share was $12.57 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of Class A and Class C.
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $3,280,422) | $ | 31,432,683 | |||
Interest | 399,779 | ||||
Securities lending, net | 137,759 | ||||
31,970,221 | |||||
Expenses: | |||||
Management fees | 14,154,266 | ||||
Distribution and service fees: | |||||
A Class | 85,087 | ||||
C Class | 3,517 | ||||
R Class | 17,562 | ||||
Directors' fees and expenses | 44,498 | ||||
Other expenses | 239,434 | ||||
14,544,364 | |||||
Fees waived - G Class | (6,157,108) | ||||
8,387,256 | |||||
Net investment income (loss) | 23,582,965 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions (net of foreign tax expenses paid (refunded) of $37,966) | (30,619,295) | ||||
Foreign currency translation transactions | 34,800 | ||||
(30,584,495) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments (includes (increase) decrease in accrued foreign taxes of $52,918) | 178,878,475 | ||||
Translation of assets and liabilities in foreign currencies | 38,458 | ||||
178,916,933 | |||||
Net realized and unrealized gain (loss) | 148,332,438 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 171,915,403 |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 23,582,965 | $ | 33,159,076 | ||||
Net realized gain (loss) | (30,584,495) | (146,115,792) | ||||||
Change in net unrealized appreciation (depreciation) | 178,916,933 | (291,753,184) | ||||||
Net increase (decrease) in net assets resulting from operations | 171,915,403 | (404,709,900) | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | — | (152,383,930) | ||||||
I Class | — | (37,122,850) | ||||||
Y Class | — | (6,430,224) | ||||||
A Class | — | (10,949,169) | ||||||
C Class | — | (177,433) | ||||||
R Class | — | (924,985) | ||||||
R5 Class | — | (1,164) | ||||||
R6 Class | — | (4,383,615) | ||||||
G Class | — | (56) | ||||||
From tax return of capital: | ||||||||
Investor Class | — | (2,588,556) | ||||||
I Class | — | (766,952) | ||||||
Y Class | — | (117,440) | ||||||
A Class | — | (191,094) | ||||||
C Class | — | (2,892) | ||||||
R Class | — | (17,102) | ||||||
R5 Class | — | (20) | ||||||
R6 Class | — | (76,634) | ||||||
G Class | — | (6) | ||||||
Decrease in net assets from distributions | — | (216,134,122) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (127,939,761) | 1,682,322,148 | ||||||
Net increase (decrease) in net assets | 43,975,642 | 1,061,478,126 | ||||||
Net Assets | ||||||||
Beginning of period | 2,666,447,001 | 1,604,968,875 | ||||||
End of period | $ | 2,710,422,643 | $ | 2,666,447,001 |
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2023 (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 value of investments of the fund is determined by American Century Investment Management, Inc. (ACIM) (the investment advisor), as the valuation designee, pursuant to its valuation policies and procedures. The Board of Directors oversees the valuation designee and reviews its valuation policies and procedures at least annually.
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 valuation designee determines that the market price for a portfolio security is not readily available or is believed by the valuation designee to be unreliable, such security is valued at fair value as determined in good faith by the valuation designee, in accordance with its policies and procedures. Circumstances that may cause the fund to determine that market quotations are not available or reliable include, but are not limited to: when there is a significant event subsequent to the market quotation; trading in a security has been halted during the trading day; or trading in a security is insufficient or did not take place due to a closure or holiday.
The valuation designee 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; regulatory news, 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 valuation designee also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that it deems appropriate. The valuation designee 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 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 ACIM has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund's policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
14
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
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, 2023.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 4,359,255 | — | — | — | $ | 4,359,255 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 4,359,255 |
(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, 34% 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 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), as well as exchange-traded funds managed by the investment advisor, that use very similar investment teams and strategies (strategy assets). 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.
15
The management fee schedule range and the effective annual management fee for each class for the period ended May 31, 2023 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |||||||
Investor Class | 1.050% to 1.500% | 1.23% | ||||||
I Class | 0.850% to 1.300% | 1.03% | ||||||
Y Class | 0.700% to 1.150% | 0.88% | ||||||
A Class | 1.050% to 1.500% | 1.23% | ||||||
C Class | 1.050% to 1.500% | 1.23% | ||||||
R Class | 1.050% to 1.500% | 1.23% | ||||||
R5 Class | 0.850% to 1.300% | 1.03% | ||||||
R6 Class | 0.700% to 1.150% | 0.88% | ||||||
G Class | 0.700% to 1.150% | 0.00%(1) |
(1)Effective annual management fee before waiver was 0.88%.
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2023 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 $1,470,195 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $760,794 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, 2023 were $660,188,249 and $789,339,182, respectively.
16
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2023 | Year ended November 30, 2022(1) | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 1,250,000,000 | 1,250,000,000 | ||||||||||||
Sold | 4,422,143 | $ | 50,187,442 | 4,323,073 | $ | 57,881,495 | ||||||||
Issued in reinvestment of distributions | — | — | 10,709,215 | 148,931,979 | ||||||||||
Redeemed | (4,751,705) | (55,852,964) | (6,827,221) | (80,462,415) | ||||||||||
(329,562) | (5,665,522) | 8,205,067 | 126,351,059 | |||||||||||
I Class/Shares Authorized | 300,000,000 | 100,000,000 | ||||||||||||
Sold | 401,683 | 4,579,068 | 10,278,633 | 114,915,896 | ||||||||||
Issued in reinvestment of distributions | — | — | 2,767,046 | 37,841,100 | ||||||||||
Redeemed | (2,085,058) | (23,635,297) | (4,919,973) | (53,061,124) | ||||||||||
(1,683,375) | (19,056,229) | 8,125,706 | 99,695,872 | |||||||||||
Y Class/Shares Authorized | 40,000,000 | 30,000,000 | ||||||||||||
Sold | 430,585 | 4,969,109 | 1,952,496 | 21,490,959 | ||||||||||
Issued in reinvestment of distributions | — | — | 475,952 | 6,532,062 | ||||||||||
Redeemed | (931,105) | (10,958,603) | (755,783) | (8,682,704) | ||||||||||
(500,520) | (5,989,494) | 1,672,665 | 19,340,317 | |||||||||||
A Class/Shares Authorized | 80,000,000 | 80,000,000 | ||||||||||||
Sold | 147,434 | 1,717,112 | 659,237 | 7,734,678 | ||||||||||
Issued in reinvestment of distributions | — | — | 786,226 | 11,019,766 | ||||||||||
Redeemed | (432,569) | (5,065,590) | (854,500) | (10,085,631) | ||||||||||
(285,135) | (3,348,478) | 590,963 | 8,668,813 | |||||||||||
C Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 784 | 8,460 | 2,514 | 27,038 | ||||||||||
Issued in reinvestment of distributions | — | — | 13,035 | 172,810 | ||||||||||
Redeemed | (12,331) | (132,178) | (38,812) | (433,059) | ||||||||||
(11,547) | (123,718) | (23,263) | (233,211) | |||||||||||
R Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 113,388 | 1,338,634 | 101,947 | 1,215,287 | ||||||||||
Issued in reinvestment of distributions | — | — | 66,701 | 942,087 | ||||||||||
Redeemed | (75,288) | (868,851) | (55,154) | (687,335) | ||||||||||
38,100 | 469,783 | 113,494 | 1,470,039 | |||||||||||
R5 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Issued in reinvestment of distributions | — | — | 86 | 1,184 | ||||||||||
R6 Class/Shares Authorized | 45,000,000 | 45,000,000 | ||||||||||||
Sold | 635,372 | 7,222,030 | 1,567,955 | 17,866,224 | ||||||||||
Issued in reinvestment of distributions | — | — | 319,036 | 4,381,413 | ||||||||||
Redeemed | (1,045,841) | (12,081,800) | (1,359,516) | (14,884,276) | ||||||||||
(410,469) | (4,859,770) | 527,475 | 7,363,361 | |||||||||||
G Class/Shares Authorized | 1,500,000,000 | 1,000,000,000 | ||||||||||||
Sold | 8,322,847 | 93,892,011 | 10,156,494 | 105,511,869 | ||||||||||
Issued in connection with reorganization (Note 9) | — | — | 117,485,888 | 1,376,170,527 | ||||||||||
Issued in reinvestment of distributions | — | — | 5 | 62 | ||||||||||
Redeemed | (15,800,938) | (183,258,344) | (5,688,755) | (62,017,744) | ||||||||||
(7,478,091) | (89,366,333) | 121,953,632 | 1,419,664,714 | |||||||||||
Net increase (decrease) | (10,660,599) | $ | (127,939,761) | 141,165,825 | $ | 1,682,322,148 |
(1)April 1, 2022 (commencement of sale) through November 30, 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 | $ | 100,538,999 | $ | 2,586,399,952 | — | ||||||
Short-Term Investments | 4,359,255 | 19,056,815 | — | ||||||||
$ | 104,898,254 | $ | 2,605,456,767 | — |
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 | $ | 2,208,414,859 | |||
Gross tax appreciation of investments | $ | 623,549,215 | |||
Gross tax depreciation of investments | (121,609,053) | ||||
Net tax appreciation (depreciation) of investments | $ | 501,940,162 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
18
As of November 30, 2022, the fund had accumulated short-term capital losses of $(143,348,301), 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 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 November 30, 2022 are as follows:
Net investment income (loss) | $ | 43,648,196 | |||
Net realized and unrealized gain (loss) | (695,559,055) | ||||
Net increase (decrease) in net assets resulting from operations | $ | (651,910,859) |
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.
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 | Tax Return of Capital | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $11.13 | 0.06 | 0.61 | 0.67 | — | — | — | — | $11.80 | 6.02% | 1.25%(4) | 1.25%(4) | 1.07%(4) | 1.07%(4) | 24% | $938,424 | ||||||||||||||||||||||||||||||||||
2022 | $16.24 | 0.14 | (3.17) | (3.03) | (0.38) | (1.67) | (0.03) | (2.08) | $11.13 | (20.99)% | 1.36% | 1.36% | 1.09% | 1.09% | 38% | $888,748 | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
I Class | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $11.03 | 0.07 | 0.61 | 0.68 | — | — | — | — | $11.71 | 6.07% | 1.05%(4) | 1.05%(4) | 1.27%(4) | 1.27%(4) | 24% | $267,938 | ||||||||||||||||||||||||||||||||||
2022 | $16.13 | 0.16 | (3.14) | (2.98) | (0.42) | (1.67) | (0.03) | (2.12) | $11.03 | (20.86)% | 1.16% | 1.16% | 1.29% | 1.29% | 38% | $271,018 | ||||||||||||||||||||||||||||||||||
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 |
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 | Tax Return of Capital | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $11.04 | 0.08 | 0.60 | 0.68 | — | — | — | — | $11.72 | 6.16% | 0.90%(4) | 0.90%(4) | 1.42%(4) | 1.42%(4) | 24% | $48,264 | ||||||||||||||||||||||||||||||||||
2022 | $16.15 | 0.16 | (3.12) | (2.96) | (0.45) | (1.67) | (0.03) | (2.15) | $11.04 | (20.73)% | 1.01% | 1.01% | 1.44% | 1.44% | 38% | $50,967 | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
A Class | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $11.19 | 0.05 | 0.61 | 0.66 | — | — | — | — | $11.85 | 5.90% | 1.50%(4) | 1.50%(4) | 0.82%(4) | 0.82%(4) | 24% | $67,562 | ||||||||||||||||||||||||||||||||||
2022 | $16.31 | 0.11 | (3.19) | (3.08) | (0.34) | (1.67) | (0.03) | (2.04) | $11.19 | (21.24)% | 1.61% | 1.61% | 0.84% | 0.84% | 38% | $66,993 | ||||||||||||||||||||||||||||||||||
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 |
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 | Tax Return of Capital | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $10.48 | —(5) | 0.58 | 0.58 | — | — | — | — | $11.06 | 5.53% | 2.25%(4) | 2.25%(4) | 0.07%(4) | 0.07%(4) | 24% | $664 | ||||||||||||||||||||||||||||||||||
2022 | $15.41 | 0.03 | (3.02) | (2.99) | (0.24) | (1.67) | (0.03) | (1.94) | $10.48 | (21.81)% | 2.36% | 2.36% | 0.09% | 0.09% | 38% | $751 | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
R Class | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $11.27 | 0.04 | 0.61 | 0.65 | — | — | — | — | $11.92 | 5.77% | 1.75%(4) | 1.75%(4) | 0.57%(4) | 0.57%(4) | 24% | $7,326 | ||||||||||||||||||||||||||||||||||
2022 | $16.40 | 0.07 | (3.21) | (3.14) | (0.29) | (1.67) | (0.03) | (1.99) | $11.27 | (21.45)% | 1.86% | 1.86% | 0.59% | 0.59% | 38% | $6,498 | ||||||||||||||||||||||||||||||||||
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 |
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 | Tax Return of Capital | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $11.04 | 0.07 | 0.60 | 0.67 | — | — | — | — | $11.71 | 6.17% | 1.05%(4) | 1.05%(4) | 1.27%(4) | 1.27%(4) | 24% | $7 | ||||||||||||||||||||||||||||||||||
2022 | $16.14 | 0.16 | (3.14) | (2.98) | (0.42) | (1.67) | (0.03) | (2.12) | $11.04 | (20.92)% | 1.16% | 1.16% | 1.29% | 1.29% | 38% | $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 | ||||||||||||||||||||||||||||||||||
R6 Class | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $11.03 | 0.07 | 0.61 | 0.68 | — | — | — | — | $11.71 | 6.17% | 0.90%(4) | 0.90%(4) | 1.42%(4) | 1.42%(4) | 24% | $24,126 | ||||||||||||||||||||||||||||||||||
2022 | $16.14 | 0.18 | (3.14) | (2.96) | (0.45) | (1.67) | (0.03) | (2.15) | $11.03 | (20.75)% | 1.01% | 1.01% | 1.44% | 1.44% | 38% | $27,243 | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
G Class | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $11.10 | 0.13 | 0.62 | 0.75 | — | — | — | — | $11.85 | 6.76% | 0.02%(4) | 0.90%(4) | 2.30%(4) | 1.42%(4) | 24% | $1,356,111 | ||||||||||||||||||||||||||||||||||
2022(6) | $12.81 | 0.15 | (1.54) | (1.39) | (0.29) | — | (0.03) | (0.32) | $11.10 | (11.03)% | 0.07%(4) | 0.95%(4) | 2.20%(4) | 1.32%(4) | 38%(7) | $1,354,224 |
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, 2023 (unaudited).
(4)Annualized.
(5)Per-share amount was less than $0.005.
(6)April 1, 2022 (commencement of sale) through November 30, 2022.
(7)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2022.
*The amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of the fund in relation to income earned and/or fluctuations in the fair value of the fund's investments.
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, including members of ACIM’s Investment Oversight Committee who are members of ACIM’s Investment Management and Global Analytics departments, conduct the day-to-day operation of the program pursuant to the program.
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 investments held by the Fund 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, 2022 through December 31, 2022. 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 at the IRS default rate of 10%.* 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.
You may elect a different withholding rate, or request zero withholding, by submitting an acceptable IRS Form W-4R election with your distribution request. You may notify us of your W-4R election by telephone, on our distribution forms, on IRS Form W-4R, or through other acceptable electronic means. If your withholding election is for an automatic withdrawal plan, you have the right to revoke your election at any time and any election you make will remain in effect until revoked by filing a new election.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld according to state regulations if, at the time of your distribution, your tax residency is within one of the mandatory withholding states.
*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 |
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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. | ||||||||
©2023 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92630 2307 |
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Semiannual Report | |||||
May 31, 2023 | |||||
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 |
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Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2023. 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.
Year-to-Date Rebound Lifted Global Stock Returns
After ending 2022 on a disappointing note, global stocks generally rebounded in the first five months of 2023. This bounce back, which occurred despite relentless volatility and ongoing central bank rate hikes, led to six-month gains for most global stock indices.
After climbing to multidecade highs in mid- to late-2022, U.S. and European inflation moderated through the end of the reporting period. This dynamic, combined with mounting recession worries, prompted investors to recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to raise rates, and markets remained volatile.
Beginning in March, high-profile bank failures in the U.S. and Europe highlighted the growing risks to the global financial system and economic growth. Market volatility escalated, but quick action from U.S. and European regulators helped restore market order.
Still, heightened uncertainty surrounding the banking industry and credit availability further fueled recession fears. Those worries strengthened investor expectations for a near-term end to central bank tightening and potential rate cuts later in the year. In the eurozone, recession worries turned to recession reality, as revised data confirmed the region’s economy contracted in the fourth quarter of 2022 and the first quarter of 2023.
Despite slowing growth and ongoing volatility, most U.S. and global stock indices advanced for the period. Non-U.S. developed markets stocks modestly outperformed U.S. stocks. Meanwhile, global growth concerns and China’s uneven post-COVID-19 reopening weighed on emerging markets stocks, which modestly declined for the period.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of still-high inflation, tighter financial conditions, banking industry turbulence and recession risk. In addition, increasingly tense geopolitical considerations complicate the market backdrop.
We appreciate your confidence in us during these extraordinary times. American Century Investments has a long history of helping clients weather unpredictable and volatile markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
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Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Fund Characteristics |
MAY 31, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 99.9% | ||||
Exchange-Traded Funds | —* | ||||
Short-Term Investments | 1.7% | ||||
Other Assets and Liabilities | (1.6)% | ||||
*Category is less than 0.05% of total net assets. | |||||
Top Five Countries* | % of net assets | ||||
Japan | 20.7% | ||||
Canada | 11.5% | ||||
United Kingdom | 9.7% | ||||
Sweden | 6.5% | ||||
Australia | 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, 2022 to May 31, 2023.
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 mutual 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 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 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 12/1/22 | Ending Account Value 5/31/23 | Expenses Paid During Period(1) 12/1/22 - 5/31/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,003.60 | $7.49 | 1.50% | ||||||||||
I Class | $1,000 | $1,004.30 | $6.50 | 1.30% | ||||||||||
A Class | $1,000 | $1,002.30 | $8.74 | 1.75% | ||||||||||
C Class | $1,000 | $998.70 | $12.46 | 2.50% | ||||||||||
R Class | $1,000 | $1,000.00 | $9.97 | 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, 2023 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 99.9% | ||||||||
Australia — 5.9% | ||||||||
Allkem Ltd.(1) | 494,134 | $ | 4,773,881 | |||||
ALS Ltd. | 485,956 | 3,650,322 | ||||||
Altium Ltd. | 130,513 | 3,284,376 | ||||||
carsales.com Ltd. | 169,412 | 2,556,616 | ||||||
IDP Education Ltd. | 96,641 | 1,370,126 | ||||||
NEXTDC Ltd.(1) | 695,018 | 5,737,128 | ||||||
Pinnacle Investment Management Group Ltd.(2) | 450,413 | 2,614,759 | ||||||
Steadfast Group Ltd. | 863,501 | 3,328,813 | ||||||
27,316,021 | ||||||||
Belgium — 0.5% | ||||||||
Euronav NV | 136,449 | 2,163,247 | ||||||
Brazil — 1.2% | ||||||||
TOTVS SA | 603,500 | 3,437,831 | ||||||
YDUQS Participacoes SA(1) | 722,900 | 2,011,974 | ||||||
5,449,805 | ||||||||
Canada — 11.5% | ||||||||
Alamos Gold, Inc., Class A | 420,648 | 5,193,415 | ||||||
ATS Corp.(1) | 83,560 | 3,659,405 | ||||||
Boyd Group Services, Inc. | 23,094 | 4,185,330 | ||||||
Brookfield Infrastructure Corp., Class A(2) | 122,745 | 5,658,544 | ||||||
Capstone Copper Corp.(1) | 626,864 | 2,475,132 | ||||||
Descartes Systems Group, Inc.(1) | 58,228 | 4,502,107 | ||||||
ERO Copper Corp.(1) | 205,299 | 3,398,209 | ||||||
Finning International, Inc. | 157,645 | 4,263,092 | ||||||
Kinaxis, Inc.(1) | 36,019 | 4,818,453 | ||||||
Lundin Gold, Inc. | 334,537 | 4,238,701 | ||||||
Pet Valu Holdings Ltd. | 28,316 | 644,541 | ||||||
Stantec, Inc. | 151,254 | 8,756,576 | ||||||
SunOpta, Inc.(1) | 176,279 | 1,186,358 | ||||||
52,979,863 | ||||||||
China — 2.5% | ||||||||
Bosideng International Holdings Ltd. | 4,558,000 | 1,892,394 | ||||||
Kanzhun Ltd., ADR(1) | 31,903 | 442,495 | ||||||
Poly Property Services Co. Ltd., Class H(2) | 651,200 | 3,086,264 | ||||||
Tongcheng Travel Holdings Ltd.(1) | 1,992,400 | 3,977,187 | ||||||
Xtep International Holdings Ltd.(2) | 2,022,500 | 2,032,882 | ||||||
11,431,222 | ||||||||
Denmark — 1.9% | ||||||||
Jyske Bank A/S(1) | 60,431 | 4,167,435 | ||||||
NKT A/S(1) | 53,043 | 3,186,511 | ||||||
TORM PLC, Class A | 52,780 | 1,335,741 | ||||||
8,689,687 | ||||||||
Finland — 2.7% | ||||||||
Metso Oyj | 337,411 | 3,699,045 | ||||||
QT Group Oyj(1)(2) | 45,279 | 4,066,563 | ||||||
Valmet Oyj(2) | 166,420 | 4,906,776 | ||||||
12,672,384 |
6
Shares | Value | |||||||
France — 3.1% | ||||||||
Alten SA | 31,407 | $ | 5,036,146 | |||||
Elis SA | 360,435 | 6,254,149 | ||||||
Interparfums SA | 40,014 | 2,864,852 | ||||||
14,155,147 | ||||||||
Germany — 5.4% | ||||||||
AIXTRON SE | 112,455 | 3,496,976 | ||||||
CTS Eventim AG & Co. KGaA | 53,276 | 3,593,089 | ||||||
Gerresheimer AG | 62,709 | 6,908,662 | ||||||
HUGO BOSS AG | 68,519 | 4,667,094 | ||||||
KION Group AG | 77,621 | 2,724,246 | ||||||
Shop Apotheke Europe NV(1) | 11,559 | 1,130,736 | ||||||
SMA Solar Technology AG(1) | 24,369 | 2,628,361 | ||||||
25,149,164 | ||||||||
Hong Kong — 1.4% | ||||||||
Samsonite International SA(1) | 2,574,300 | 6,535,663 | ||||||
India — 4.8% | ||||||||
Max Healthcare Institute Ltd.(1) | 1,066,230 | 7,071,238 | ||||||
Prestige Estates Projects Ltd. | 608,040 | 3,547,537 | ||||||
Varun Beverages Ltd. | 258,634 | 5,290,936 | ||||||
WNS Holdings Ltd., ADR(1) | 78,708 | 6,115,612 | ||||||
22,025,323 | ||||||||
Israel — 2.3% | ||||||||
CyberArk Software Ltd.(1) | 12,664 | 1,959,501 | ||||||
Inmode Ltd.(1) | 115,278 | 3,639,326 | ||||||
Kornit Digital Ltd.(1) | 48,330 | 1,085,009 | ||||||
Nova Ltd.(1)(2) | 36,501 | 3,941,743 | ||||||
10,625,579 | ||||||||
Italy — 1.1% | ||||||||
Brembo SpA | 326,997 | 4,976,345 | ||||||
Japan — 20.7% | ||||||||
Amvis Holdings, Inc. | 214,300 | 4,639,732 | ||||||
Asics Corp. | 283,300 | 7,567,779 | ||||||
BayCurrent Consulting, Inc. | 69,800 | 2,551,277 | ||||||
Food & Life Cos. Ltd. | 173,600 | 4,077,550 | ||||||
FP Partner, Inc. | 21,700 | 1,234,426 | ||||||
GMO Financial Gate, Inc. | 47,400 | 3,612,364 | ||||||
IHI Corp. | 35,600 | 820,793 | ||||||
Insource Co. Ltd. | 269,100 | 2,348,193 | ||||||
Internet Initiative Japan, Inc. | 288,800 | 5,684,302 | ||||||
Invincible Investment Corp. | 12,451 | 5,294,977 | ||||||
Japan Airport Terminal Co. Ltd. | 117,700 | 5,489,243 | ||||||
JMDC, Inc. | 98,300 | 4,016,062 | ||||||
Kotobuki Spirits Co. Ltd. | 76,200 | 5,731,082 | ||||||
MatsukiyoCocokara & Co. | 93,400 | 4,999,649 | ||||||
Money Forward, Inc.(1) | 53,000 | 2,213,273 | ||||||
m-up Holdings, Inc.(2) | 355,600 | 2,798,986 | ||||||
Nextage Co. Ltd.(2) | 135,900 | 2,381,776 | ||||||
Nippon Gas Co. Ltd. | 170,300 | 2,359,913 | ||||||
Rohto Pharmaceutical Co. Ltd. | 235,600 | 5,019,920 | ||||||
Sega Sammy Holdings, Inc. | 227,200 | 4,411,203 | ||||||
Socionext, Inc. | 36,400 | 4,355,058 |
7
Shares | Value | |||||||
Stanley Electric Co. Ltd. | 145,100 | $ | 2,919,175 | |||||
Taiyo Yuden Co. Ltd. | 79,300 | 2,462,256 | ||||||
TechnoPro Holdings, Inc.(2) | 74,600 | 1,616,327 | ||||||
Tokyo Ohka Kogyo Co. Ltd. | 45,100 | 2,669,502 | ||||||
Toyo Suisan Kaisha Ltd. | 106,100 | 4,643,271 | ||||||
95,918,089 | ||||||||
Mexico — 2.4% | ||||||||
Grupo Aeroportuario del Centro Norte SAB de CV | 322,887 | 3,338,756 | ||||||
Regional SAB de CV | 635,797 | 4,952,955 | ||||||
Vista Energy SAB de CV, ADR(1)(2) | 134,362 | 2,777,263 | ||||||
11,068,974 | ||||||||
Netherlands — 3.1% | ||||||||
AMG Critical Materials NV | 113,260 | 5,114,773 | ||||||
Basic-Fit NV(1)(2) | 101,606 | 3,891,713 | ||||||
BE Semiconductor Industries NV | 47,463 | 5,248,008 | ||||||
14,254,494 | ||||||||
Norway — 0.8% | ||||||||
TGS ASA | 255,793 | 3,515,740 | ||||||
South Africa — 1.1% | ||||||||
Aspen Pharmacare Holdings Ltd. | 266,522 | 2,318,309 | ||||||
Bidvest Group Ltd. | 226,459 | 2,735,479 | ||||||
5,053,788 | ||||||||
South Korea — 3.4% | ||||||||
Dentium Co. Ltd. | 17,803 | 2,125,620 | ||||||
JYP Entertainment Corp. | 98,326 | 9,025,222 | ||||||
L&F Co. Ltd. | 23,514 | 4,761,597 | ||||||
15,912,439 | ||||||||
Spain — 0.6% | ||||||||
Cia de Distribucion Integral Logista Holdings SA | 116,276 | 2,894,187 | ||||||
Sweden — 6.5% | ||||||||
AddTech AB, B Shares | 195,519 | 4,023,020 | ||||||
Avanza Bank Holding AB(2) | 110,729 | 2,299,273 | ||||||
Fortnox AB | 544,171 | 3,519,202 | ||||||
MIPS AB(2) | 35,597 | 1,785,630 | ||||||
Saab AB, B Shares | 162,207 | 8,844,399 | ||||||
Trelleborg AB, B Shares | 250,507 | 6,239,123 | ||||||
Vitrolife AB | 172,104 | 3,406,293 | ||||||
30,116,940 | ||||||||
Switzerland — 0.9% | ||||||||
Dufry AG(1) | 44,218 | 2,003,522 | ||||||
Tecan Group AG | 5,814 | 2,234,258 | ||||||
4,237,780 | ||||||||
Taiwan — 5.1% | ||||||||
Airtac International Group | 157,131 | 5,065,118 | ||||||
ASPEED Technology, Inc. | 28,700 | 2,679,346 | ||||||
Gold Circuit Electronics Ltd. | 393,000 | 1,554,469 | ||||||
Lotes Co. Ltd. | 117,000 | 3,303,737 | ||||||
Poya International Co. Ltd. | 147,000 | 2,546,983 | ||||||
Sinbon Electronics Co. Ltd. | 489,000 | 5,723,851 | ||||||
Wiwynn Corp. | 76,000 | 2,857,279 | ||||||
23,730,783 | ||||||||
Thailand — 1.3% | ||||||||
Bangkok Bank PCL, NVDR | 813,200 | 3,805,461 |
8
Shares | Value | |||||||
Central Retail Corp. PCL, NVDR | 1,806,300 | $ | 2,178,635 | |||||
5,984,096 | ||||||||
United Kingdom — 9.7% | ||||||||
Abcam PLC, ADR(1) | 85,125 | 1,374,769 | ||||||
B&M European Value Retail SA | 590,162 | 3,749,064 | ||||||
ConvaTec Group PLC | 1,303,288 | 3,301,876 | ||||||
Diploma PLC | 126,692 | 4,783,284 | ||||||
Games Workshop Group PLC | 29,005 | 3,419,950 | ||||||
Golar LNG Ltd.(1) | 70,464 | 1,449,444 | ||||||
Greggs PLC | 121,586 | 4,063,795 | ||||||
Intermediate Capital Group PLC | 272,131 | 4,723,343 | ||||||
Melrose Industries PLC | 392,068 | 2,307,039 | ||||||
Spectris PLC | 93,248 | 4,268,676 | ||||||
Tate & Lyle PLC | 419,872 | 4,110,838 | ||||||
Weir Group PLC | 172,320 | 3,644,244 | ||||||
WH Smith PLC | 188,791 | 3,692,897 | ||||||
44,889,219 | ||||||||
TOTAL COMMON STOCKS (Cost $414,475,717) | 461,745,979 | |||||||
EXCHANGE-TRADED FUNDS† | ||||||||
Schwab International Small-Cap Equity ETF(2) (Cost $71,264) | 2,595 | 84,779 | ||||||
SHORT-TERM INVESTMENTS — 1.7% | ||||||||
Money Market Funds — 1.1% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 63 | 63 | ||||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) | 5,084,633 | 5,084,633 | ||||||
5,084,696 | ||||||||
Repurchase Agreements — 0.6% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 11/30/28 - 11/15/43, valued at $410,781), in a joint trading account at 5.01%, dated 5/31/23, due 6/1/23 (Delivery value $401,889) | 401,833 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.50%, 4/30/30, valued at $2,665,333), at 5.05%, dated 5/31/23, due 6/1/23 (Delivery value $2,613,367) | 2,613,000 | |||||||
3,014,833 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $8,099,529) | 8,099,529 | |||||||
TOTAL INVESTMENT SECURITIES — 101.6% (Cost $422,646,510) | 469,930,287 | |||||||
OTHER ASSETS AND LIABILITIES — (1.6)% | (7,530,878) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 462,399,409 |
9
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Industrials | 23.5% | ||||
Information Technology | 19.1% | ||||
Consumer Discretionary | 16.8% | ||||
Health Care | 8.9% | ||||
Consumer Staples | 7.6% | ||||
Financials | 6.7% | ||||
Materials | 5.9% | ||||
Communication Services | 4.6% | ||||
Real Estate | 2.6% | ||||
Energy | 2.5% | ||||
Utilities | 1.7% | ||||
Exchange-Traded Funds | —* | ||||
Short-Term Investments | 1.7% | ||||
Other Assets and Liabilities | (1.6)% |
*Category is less than 0.05% of total net assets.
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
ADR | – | American Depositary Receipt | ||||||
NVDR | – | Non-Voting 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 $21,185,981. 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 $22,997,082, which includes securities collateral of $17,912,449.
See Notes to Financial Statements.
10
Statement of Assets and Liabilities |
MAY 31, 2023 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $417,561,877) — including $21,185,981 of securities on loan | $ | 464,845,654 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $5,084,633) | 5,084,633 | ||||
Total investment securities, at value (cost of $422,646,510) | 469,930,287 | ||||
Foreign currency holdings, at value (cost of $75) | 74 | ||||
Receivable for investments sold | 6,222,601 | ||||
Receivable for capital shares sold | 82,944 | ||||
Dividends and interest receivable | 1,250,381 | ||||
Securities lending receivable | 44,563 | ||||
Other assets | 117,387 | ||||
477,648,237 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 5,084,633 | ||||
Payable for investments purchased | 7,644,077 | ||||
Payable for capital shares redeemed | 534,499 | ||||
Accrued management fees | 599,888 | ||||
Distribution and service fees payable | 1,947 | ||||
Accrued foreign taxes | 864,110 | ||||
Accrued IRS compliance fees | 483,400 | ||||
Accrued other expenses | 36,274 | ||||
15,248,828 | |||||
Net Assets | $ | 462,399,409 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 531,852,250 | |||
Distributable earnings (loss) | (69,452,841) | ||||
$ | 462,399,409 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $364,337,793 | 42,022,369 | $8.67 | ||||||||
I Class, $0.01 Par Value | $91,324,242 | 10,369,192 | $8.81 | ||||||||
A Class, $0.01 Par Value | $4,917,544 | 574,716 | $8.56 | ||||||||
C Class, $0.01 Par Value | $233,415 | 29,472 | $7.92 | ||||||||
R Class, $0.01 Par Value | $1,586,415 | 188,976 | $8.39 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except Class A, for which the maximum offering price per share was $9.08 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of Class A and Class C.
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $369,118) | $ | 3,425,548 | |||
Securities lending, net | 190,102 | ||||
Interest | 102,944 | ||||
3,718,594 | |||||
Expenses: | |||||
Management fees | 3,418,835 | ||||
Distribution and service fees: | |||||
A Class | 6,239 | ||||
C Class | 1,251 | ||||
R Class | 4,080 | ||||
Directors' fees and expenses | 7,677 | ||||
Other expenses | 45,228 | ||||
3,483,310 | |||||
Net investment income (loss) | 235,284 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions (net of foreign tax expenses paid (refunded) of $(7,861)) | (31,976,065) | ||||
Foreign currency translation transactions | (199,783) | ||||
(32,175,848) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments (includes (increase) decrease in accrued foreign taxes of $(449,744)) | 33,800,315 | ||||
Translation of assets and liabilities in foreign currencies | (9,074) | ||||
33,791,241 | |||||
Net realized and unrealized gain (loss) | 1,615,393 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,850,677 |
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 235,284 | $ | 1,018,045 | ||||
Net realized gain (loss) | (32,175,848) | (70,906,015) | ||||||
Change in net unrealized appreciation (depreciation) | 33,791,241 | (110,228,942) | ||||||
Net increase (decrease) in net assets resulting from operations | 1,850,677 | (180,116,912) | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (883,194) | (88,794,481) | ||||||
I Class | (395,627) | (21,915,086) | ||||||
A Class | — | (1,277,370) | ||||||
C Class | — | (107,888) | ||||||
R Class | — | (310,275) | ||||||
Decrease in net assets from distributions | (1,278,821) | (112,405,100) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (15,608,038) | 41,232,662 | ||||||
Net increase (decrease) in net assets | (15,036,182) | (251,289,350) | ||||||
Net Assets | ||||||||
Beginning of period | 477,435,591 | 728,724,941 | ||||||
End of period | $ | 462,399,409 | $ | 477,435,591 |
See Notes to Financial Statements.
13
Notes to Financial Statements |
MAY 31, 2023 (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 value of investments of the fund is determined by American Century Investment Management, Inc. (ACIM) (the investment advisor), as the valuation designee, pursuant to its valuation policies and procedures. The Board of Directors oversees the valuation designee and reviews its valuation policies and procedures at least annually.
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 valuation designee determines that the market price for a portfolio security is not readily available or is believed by the valuation designee to be unreliable, such security is valued at fair value as determined in good faith by the valuation designee, in accordance with its policies and procedures. Circumstances that may cause the fund to determine that market quotations are not available or reliable include, but are not limited to: when there is a significant event subsequent to the market quotation; trading in a security has been halted during the trading day; or trading in a security is insufficient or did not take place due to a closure or holiday.
The valuation designee 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; regulatory news, 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 valuation designee also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that it deems appropriate. The valuation designee may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
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Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income 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 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 ACIM has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund's policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
15
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, 2023.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 5,077,847 | — | — | — | $ | 5,077,847 | ||||||||||
Exchange-Traded Funds | 6,786 | — | — | — | 6,786 | ||||||||||||
Total Borrowings | $ | 5,084,633 | — | — | — | $ | 5,084,633 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 5,084,633 |
(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.
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), as well as exchange-traded funds managed by the investment advisor, that use very similar investment teams and strategies (strategy assets).
16
The management fee schedule range and the effective annual management fee for each class for the period ended May 31, 2023 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |||||||
Investor Class | 1.200% to 1.550% | 1.48% | ||||||
I Class | 1.000% to 1.350% | 1.28% | ||||||
A Class | 1.200% to 1.550% | 1.48% | ||||||
C Class | 1.200% to 1.550% | 1.48% | ||||||
R Class | 1.200% to 1.550% | 1.48% |
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, 2023 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, 2023 were $267,780,646 and $282,042,308, respectively.
17
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2023 | Year ended November 30, 2022 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 670,000,000 | 670,000,000 | ||||||||||||
Sold | 547,237 | $ | 4,787,250 | 1,336,202 | $ | 12,903,382 | ||||||||
Issued in reinvestment of distributions | 97,008 | 833,302 | 7,261,013 | 83,356,434 | ||||||||||
Redeemed | (2,830,672) | (24,602,114) | (6,192,671) | (59,589,548) | ||||||||||
(2,186,427) | (18,981,562) | 2,404,544 | 36,670,268 | |||||||||||
I Class/Shares Authorized | 120,000,000 | 95,000,000 | ||||||||||||
Sold | 1,385,918 | 12,049,588 | 3,162,278 | 30,949,800 | ||||||||||
Issued in reinvestment of distributions | 45,265 | 394,713 | 1,879,082 | 21,891,303 | ||||||||||
Redeemed | (983,664) | (8,734,440) | (5,243,125) | (48,895,084) | ||||||||||
447,519 | 3,709,861 | (201,765) | 3,946,019 | |||||||||||
A Class/Shares Authorized | 35,000,000 | 35,000,000 | ||||||||||||
Sold | 25,352 | 219,302 | 67,004 | 644,416 | ||||||||||
Issued in reinvestment of distributions | — | — | 108,812 | 1,233,933 | ||||||||||
Redeemed | (44,754) | (381,889) | (185,414) | (1,757,896) | ||||||||||
(19,402) | (162,587) | (9,598) | 120,453 | |||||||||||
C Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 1,569 | 12,294 | 248 | 2,471 | ||||||||||
Issued in reinvestment of distributions | — | — | 10,159 | 107,888 | ||||||||||
Redeemed | (5,318) | (42,324) | (28,973) | (263,636) | ||||||||||
(3,749) | (30,030) | (18,566) | (153,277) | |||||||||||
R Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 24,294 | 209,790 | 60,800 | 589,982 | ||||||||||
Issued in reinvestment of distributions | — | — | 27,778 | 310,275 | ||||||||||
Redeemed | (42,017) | (353,510) | (27,345) | (251,058) | ||||||||||
(17,723) | (143,720) | 61,233 | 649,199 | |||||||||||
Net increase (decrease) | (1,779,782) | $ | (15,608,038) | 2,235,848 | $ | 41,232,662 |
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.
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The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund's portfolio holdings.
Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||
Investment Securities | |||||||||||
Common Stocks | |||||||||||
Canada | $ | 6,844,902 | $ | 46,134,961 | — | ||||||
China | 442,495 | 10,988,727 | — | ||||||||
India | 6,115,612 | 15,909,711 | — | ||||||||
Israel | 10,625,579 | — | — | ||||||||
Mexico | 2,777,263 | 8,291,711 | — | ||||||||
United Kingdom | 2,824,213 | 42,065,006 | — | ||||||||
Other Countries | — | 308,725,799 | — | ||||||||
Exchange-Traded Funds | 84,779 | — | — | ||||||||
Short-Term Investments | 5,084,696 | 3,014,833 | — | ||||||||
$ | 34,799,539 | $ | 435,130,748 | — |
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 | $ | 426,820,232 | |||
Gross tax appreciation of investments | $ | 57,284,224 | |||
Gross tax depreciation of investments | (14,174,169) | ||||
Net tax appreciation (depreciation) of investments | $ | 43,110,055 |
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, 2022, the fund had accumulated short-term capital losses of $(76,773,821), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
19
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations*: | 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 | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $8.66 | —(4) | 0.03 | 0.03 | (0.02) | — | (0.02) | $8.67 | 0.36% | 1.50%(5) | 1.50%(5) | 0.07%(5) | 0.07%(5) | 57% | $364,338 | ||||||||||||||||||||||||||||||||
2022 | $13.79 | 0.01 | (3.00) | (2.99) | (0.05) | (2.09) | (2.14) | $8.66 | (25.53)% | 1.48% | 1.48% | 0.15% | 0.15% | 108% | $382,973 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $8.81 | 0.01 | 0.03 | 0.04 | (0.04) | — | (0.04) | $8.81 | 0.43% | 1.30%(5) | 1.30%(5) | 0.27%(5) | 0.27%(5) | 57% | $91,324 | ||||||||||||||||||||||||||||||||
2022 | $13.98 | 0.04 | (3.05) | (3.01) | (0.07) | (2.09) | (2.16) | $8.81 | (25.29)% | 1.28% | 1.28% | 0.35% | 0.35% | 108% | $87,392 | ||||||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $8.54 | (0.01) | 0.03 | 0.02 | — | — | — | $8.56 | 0.23% | 1.75%(5) | 1.75%(5) | (0.18)%(5) | (0.18)%(5) | 57% | $4,918 | ||||||||||||||||||||||||||||||||
2022 | $13.62 | (0.01) | (2.97) | (2.98) | (0.01) | (2.09) | (2.10) | $8.54 | (25.68)% | 1.73% | 1.73% | (0.10)% | (0.10)% | 108% | $5,073 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $7.93 | (0.04) | 0.03 | (0.01) | — | — | — | $7.92 | (0.13)% | 2.50%(5) | 2.50%(5) | (0.93)%(5) | (0.93)%(5) | 57% | $233 | ||||||||||||||||||||||||||||||||
2022 | $12.87 | (0.09) | (2.76) | (2.85) | — | (2.09) | (2.09) | $7.93 | (26.27)% | 2.48% | 2.48% | (0.85)% | (0.85)% | 108% | $264 | ||||||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $8.39 | (0.02) | 0.02 | — | — | — | — | $8.39 | 0.00% | 2.00%(5) | 2.00%(5) | (0.43)%(5) | (0.43)%(5) | 57% | $1,586 | ||||||||||||||||||||||||||||||||
2022 | $13.43 | (0.03) | (2.92) | (2.95) | — | (2.09) | (2.09) | $8.39 | (25.85)% | 1.98% | 1.98% | (0.35)% | (0.35)% | 108% | $1,734 | ||||||||||||||||||||||||||||||||
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) | —(4) | (1.05) | (1.05) | $9.14 | (14.46)% | 1.98% | 2.12% | (0.43)% | (0.57)% | 140% | $1,300 |
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, 2023 (unaudited).
(4)Per-share amount was less than $0.005.
(5)Annualized.
*The amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of the fund in relation to income earned and/or fluctuations in the fair value of the fund's investments.
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, including members of ACIM’s Investment Oversight Committee who are members of ACIM’s Investment Management and Global Analytics departments, conduct the day-to-day operation of the program pursuant to the program.
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 investments held by the Fund 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, 2022 through December 31, 2022. 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 at the IRS default rate of 10%.* 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.
You may elect a different withholding rate, or request zero withholding, by submitting an acceptable IRS Form W-4R election with your distribution request. You may notify us of your W-4R election by telephone, on our distribution forms, on IRS Form W-4R, or through other acceptable electronic means. If your withholding election is for an automatic withdrawal plan, you have the right to revoke your election at any time and any election you make will remain in effect until revoked by filing a new election.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld according to state regulations if, at the time of your distribution, your tax residency is within one of the mandatory withholding states.
*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
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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. | ||||||||
©2023 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92635 2307 |
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Semiannual Report | |||||
May 31, 2023 | |||||
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 |
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Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2023. 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.
Year-to-Date Rebound Lifted Global Stock Returns
After ending 2022 on a disappointing note, global stocks generally rebounded in the first five months of 2023. This bounce back, which occurred despite relentless volatility and ongoing central bank rate hikes, led to six-month gains for most global stock indices.
After climbing to multidecade highs in mid- to late-2022, U.S. and European inflation moderated through the end of the reporting period. This dynamic, combined with mounting recession worries, prompted investors to recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to raise rates, and markets remained volatile.
Beginning in March, high-profile bank failures in the U.S. and Europe highlighted the growing risks to the global financial system and economic growth. Market volatility escalated, but quick action from U.S. and European regulators helped restore market order.
Still, heightened uncertainty surrounding the banking industry and credit availability further fueled recession fears. Those worries strengthened investor expectations for a near-term end to central bank tightening and potential rate cuts later in the year. In the eurozone, recession worries turned to recession reality, as revised data confirmed the region’s economy contracted in the fourth quarter of 2022 and the first quarter of 2023.
Despite slowing growth and ongoing volatility, most U.S. and global stock indices advanced for the period. Non-U.S. developed markets stocks modestly outperformed U.S. stocks. Meanwhile, global growth concerns and China’s uneven post-COVID-19 reopening weighed on emerging markets stocks, which modestly declined for the period.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of still-high inflation, tighter financial conditions, banking industry turbulence and recession risk. In addition, increasingly tense geopolitical considerations complicate the market backdrop.
We appreciate your confidence in us during these extraordinary times. American Century Investments has a long history of helping clients weather unpredictable and volatile markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,

Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 98.0% | ||||
Exchange-Traded Funds | 0.5% | ||||
Short-Term Investments | 5.4% | ||||
Other Assets and Liabilities | (3.9)% | ||||
Top Five Countries* | % of net assets | ||||
Japan | 24.6% | ||||
United Kingdom | 17.5% | ||||
Germany | 8.2% | ||||
Canada | 7.8% | ||||
France | 6.4% |
*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, 2022 to May 31, 2023.
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 12/1/22 | Ending Account Value 5/31/23 | Expenses Paid During Period(1) 12/1/22 - 5/31/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $977.20 | $7.05 | 1.43% | ||||||||||
G Class | $1,000 | $983.60 | $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, 2023 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 98.0% | ||||||||
Australia — 5.9% | ||||||||
Allkem Ltd.(1) | 495,239 | $ | 4,784,556 | |||||
ALS Ltd. | 727,160 | 5,462,158 | ||||||
carsales.com Ltd. | 319,106 | 4,815,665 | ||||||
IDP Education Ltd. | 101,077 | 1,433,017 | ||||||
NEXTDC Ltd.(1) | 743,902 | 6,140,648 | ||||||
Region RE Ltd. | 730,872 | 1,192,779 | ||||||
Steadfast Group Ltd. | 1,127,510 | 4,346,573 | ||||||
28,175,396 | ||||||||
Belgium — 2.0% | ||||||||
D'ieteren Group | 40,802 | 7,058,965 | ||||||
Euronav NV | 156,422 | 2,479,896 | ||||||
9,538,861 | ||||||||
Canada — 7.8% | ||||||||
Alamos Gold, Inc., Class A | 461,400 | 5,696,548 | ||||||
Aritzia, Inc.(1) | 17,322 | 443,673 | ||||||
Brookfield Infrastructure Corp., Class A | 140,336 | 6,469,490 | ||||||
Capstone Copper Corp.(1) | 562,750 | 2,221,982 | ||||||
Descartes Systems Group, Inc.(1) | 60,764 | 4,698,187 | ||||||
Finning International, Inc. | 162,665 | 4,398,845 | ||||||
FirstService Corp. | 42,282 | 6,136,810 | ||||||
Kinaxis, Inc.(1) | 45,273 | 6,056,410 | ||||||
SunOpta, Inc.(1) | 180,391 | 1,214,031 | ||||||
37,335,976 | ||||||||
Denmark — 1.3% | ||||||||
Jyske Bank A/S(1) | 72,203 | 4,979,254 | ||||||
TORM PLC, Class A | 54,187 | 1,371,349 | ||||||
6,350,603 | ||||||||
Finland — 2.8% | ||||||||
Metso Oyj | 351,414 | 3,852,561 | ||||||
QT Group Oyj(1)(2) | 45,828 | 4,115,869 | ||||||
Valmet Oyj(2) | 186,577 | 5,501,091 | ||||||
13,469,521 | ||||||||
France — 6.4% | ||||||||
Alten SA | 42,172 | 6,762,325 | ||||||
APERAM SA(2) | 66,811 | 2,195,818 | ||||||
Elis SA(2) | 434,436 | 7,538,190 | ||||||
SEB SA(2) | 38,762 | 3,656,519 | ||||||
SPIE SA | 261,283 | 7,769,404 | ||||||
Verallia SA | 88,176 | 3,065,120 | ||||||
30,987,376 | ||||||||
Germany — 8.2% | ||||||||
AIXTRON SE | 117,504 | 3,653,984 | ||||||
CTS Eventim AG & Co. KGaA | 59,686 | 4,025,398 | ||||||
Gerresheimer AG | 65,093 | 7,171,307 | ||||||
Hensoldt AG | 149,328 | 4,765,188 | ||||||
HUGO BOSS AG | 73,325 | 4,994,449 |
5
Shares | Value | |||||||
Jenoptik AG | 113,479 | $ | 3,789,007 | |||||
KION Group AG | 88,735 | 3,114,311 | ||||||
Shop Apotheke Europe NV(1) | 12,049 | 1,178,669 | ||||||
Stabilus SE | 37,744 | 2,255,295 | ||||||
TeamViewer SE(1) | 287,409 | 4,510,635 | ||||||
39,458,243 | ||||||||
Ireland — 1.2% | ||||||||
AIB Group PLC | 1,379,844 | 5,704,173 | ||||||
Israel — 2.5% | ||||||||
CyberArk Software Ltd.(1) | 12,749 | 1,972,653 | ||||||
Inmode Ltd.(1) | 125,556 | 3,963,803 | ||||||
Kornit Digital Ltd.(1) | 73,384 | 1,647,471 | ||||||
Nova Ltd.(1) | 43,489 | 4,696,377 | ||||||
12,280,304 | ||||||||
Italy — 2.9% | ||||||||
BPER Banca | 1,573,054 | 4,045,982 | ||||||
Interpump Group SpA | 93,000 | 5,019,481 | ||||||
Tod's SpA(1) | 117,920 | 4,801,640 | ||||||
13,867,103 | ||||||||
Japan — 24.6% | ||||||||
Amvis Holdings, Inc. | 288,000 | 6,235,385 | ||||||
Asics Corp. | 289,100 | 7,722,714 | ||||||
BayCurrent Consulting, Inc. | 97,100 | 3,549,127 | ||||||
Food & Life Cos. Ltd. | 203,700 | 4,784,544 | ||||||
Fukuoka Financial Group, Inc. | 134,100 | 2,485,478 | ||||||
GMO Payment Gateway, Inc. | 36,400 | 2,870,574 | ||||||
IHI Corp. | 37,100 | 855,377 | ||||||
Internet Initiative Japan, Inc. | 358,400 | 7,054,203 | ||||||
Invincible Investment Corp. | 15,245 | 6,483,167 | ||||||
Isetan Mitsukoshi Holdings Ltd. | 342,600 | 3,471,475 | ||||||
Japan Airport Terminal Co. Ltd. | 157,400 | 7,340,755 | ||||||
Japan Hotel REIT Investment Corp. | 4,591 | 2,605,176 | ||||||
Kansai Paint Co. Ltd. | 242,300 | 3,633,520 | ||||||
Kotobuki Spirits Co. Ltd. | 72,100 | 5,422,717 | ||||||
M&A Capital Partners Co. Ltd.(1) | 118,300 | 2,589,856 | ||||||
MatsukiyoCocokara & Co. | 94,400 | 5,053,178 | ||||||
m-up Holdings, Inc. | 276,100 | 2,173,228 | ||||||
Nextage Co. Ltd.(2) | 122,900 | 2,153,939 | ||||||
Nifco, Inc. | 208,300 | 5,559,998 | ||||||
Nippon Gas Co. Ltd.(2) | 263,200 | 3,647,264 | ||||||
Rohto Pharmaceutical Co. Ltd. | 369,600 | 7,875,052 | ||||||
Sankyo Co. Ltd. | 106,000 | 4,270,110 | ||||||
Stanley Electric Co. Ltd. | 149,000 | 2,997,637 | ||||||
Taiyo Yuden Co. Ltd. | 83,300 | 2,586,455 | ||||||
TechnoPro Holdings, Inc. | 90,600 | 1,962,992 | ||||||
Tokyo Ohka Kogyo Co. Ltd. | 47,400 | 2,805,640 | ||||||
Toyo Suisan Kaisha Ltd. | 129,700 | 5,676,081 | ||||||
Usen-Next Holdings Co. Ltd. | 76,500 | 1,781,158 | ||||||
Yamazaki Baking Co. Ltd. | 169,300 | 2,443,668 | ||||||
118,090,468 | ||||||||
Netherlands — 3.4% | ||||||||
AMG Critical Materials NV | 160,342 | 7,240,977 |
6
Shares | Value | |||||||
ASR Nederland NV(2) | 87,127 | $ | 3,713,070 | |||||
Basic-Fit NV(1)(2) | 140,815 | 5,393,496 | ||||||
16,347,543 | ||||||||
Norway — 1.9% | ||||||||
Aker Solutions ASA | 1,290,950 | 4,233,894 | ||||||
Storebrand ASA | 349,631 | 2,528,338 | ||||||
TGS ASA | 174,370 | 2,396,624 | ||||||
9,158,856 | ||||||||
Spain — 1.9% | ||||||||
Cia de Distribucion Integral Logista Holdings SA | 199,403 | 4,963,273 | ||||||
CIE Automotive SA | 153,513 | 4,393,328 | ||||||
9,356,601 | ||||||||
Sweden — 4.4% | ||||||||
AddTech AB, B Shares | 205,875 | 4,236,106 | ||||||
Avanza Bank Holding AB(2) | 117,290 | 2,435,511 | ||||||
Beijer Ref AB | 305,684 | 4,536,921 | ||||||
Trelleborg AB, B Shares | 261,454 | 6,511,769 | ||||||
Vitrolife AB | 179,311 | 3,548,934 | ||||||
21,269,241 | ||||||||
Switzerland — 3.3% | ||||||||
Dufry AG(1) | 52,169 | 2,363,783 | ||||||
Georg Fischer AG | 38,543 | 2,554,629 | ||||||
Interroll Holding AG | 1,203 | 3,914,006 | ||||||
PSP Swiss Property AG | 44,844 | 4,824,240 | ||||||
Tecan Group AG | 6,103 | 2,345,318 | ||||||
16,001,976 | ||||||||
United Kingdom — 17.5% | ||||||||
B&M European Value Retail SA | 752,405 | 4,779,729 | ||||||
Balfour Beatty PLC | 1,417,976 | 6,470,678 | ||||||
Bellway PLC | 214,360 | 6,038,593 | ||||||
ConvaTec Group PLC | 1,759,796 | 4,458,437 | ||||||
Diploma PLC | 141,330 | 5,335,945 | ||||||
Games Workshop Group PLC | 30,523 | 3,598,936 | ||||||
Golar LNG Ltd.(1) | 73,147 | 1,504,634 | ||||||
Greggs PLC | 163,920 | 5,478,733 | ||||||
Intermediate Capital Group PLC | 282,364 | 4,900,955 | ||||||
Keywords Studios PLC | 88,880 | 2,152,397 | ||||||
Man Group PLC | 1,404,703 | 3,845,034 | ||||||
Melrose Industries PLC | 531,385 | 3,126,820 | ||||||
Pets at Home Group PLC | 596,871 | 2,794,216 | ||||||
QinetiQ Group PLC | 549,375 | 2,457,567 | ||||||
Spectris PLC | 96,800 | 4,431,279 | ||||||
Tate & Lyle PLC | 560,910 | 5,491,698 | ||||||
Trainline PLC(1) | 734,411 | 2,231,909 | ||||||
Tritax Big Box REIT PLC | 3,403,853 | 5,937,590 | ||||||
Weir Group PLC | 208,121 | 4,401,368 | ||||||
WH Smith PLC | 237,554 | 4,646,739 | ||||||
84,083,257 | ||||||||
TOTAL COMMON STOCKS (Cost $435,890,532) | 471,475,498 | |||||||
EXCHANGE-TRADED FUNDS — 0.5% | ||||||||
iShares MSCI EAFE Small-Cap ETF (Cost $2,443,557) | 41,396 | 2,408,833 |
7
Shares | Value | |||||||
SHORT-TERM INVESTMENTS — 5.4% | ||||||||
Money Market Funds — 3.6% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 15,312 | $ | 15,312 | |||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) | 16,961,067 | 16,961,067 | ||||||
16,976,379 | ||||||||
Repurchase Agreements — 1.8% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 11/30/28 - 11/15/43, valued at $1,195,139), in a joint trading account at 5.01%, dated 5/31/23, due 6/1/23 (Delivery value $1,169,269) | 1,169,106 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.50%, 4/30/30, valued at $7,755,114), at 5.05%, dated 5/31/23, due 6/1/23 (Delivery value $7,604,067) | 7,603,000 | |||||||
8,772,106 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $25,748,485) | 25,748,485 | |||||||
TOTAL INVESTMENT SECURITIES — 103.9% (Cost $464,082,574) | 499,632,816 | |||||||
OTHER ASSETS AND LIABILITIES — (3.9)% | (18,700,770) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 480,932,046 |
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Industrials | 23.5% | ||||
Consumer Discretionary | 19.9% | ||||
Information Technology | 12.2% | ||||
Financials | 9.1% | ||||
Consumer Staples | 7.0% | ||||
Materials | 6.6% | ||||
Health Care | 5.7% | ||||
Real Estate | 5.7% | ||||
Communication Services | 3.7% | ||||
Energy | 2.5% | ||||
Utilities | 2.1% | ||||
Exchange-Traded Funds | 0.5% | ||||
Short-Term Investments | 5.4% | ||||
Other Assets and Liabilities | (3.9)% |
NOTES TO SCHEDULE OF INVESTMENTS |
(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 $28,407,924. 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 $30,271,722, which includes securities collateral of $13,310,655.
See Notes to Financial Statements.
8
Statement of Assets and Liabilities |
MAY 31, 2023 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $447,121,507) — including $28,407,924 of securities on loan | $ | 482,671,749 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $16,961,067) | 16,961,067 | ||||
Total investment securities, at value (cost of $464,082,574) | 499,632,816 | ||||
Receivable for investments sold | 4,039,210 | ||||
Receivable for capital shares sold | 125,110 | ||||
Dividends and interest receivable | 1,919,660 | ||||
Securities lending receivable | 30,843 | ||||
505,747,639 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 16,961,067 | ||||
Payable for investments purchased | 7,743,092 | ||||
Payable for capital shares redeemed | 6,504 | ||||
Accrued management fees | 104,930 | ||||
24,815,593 | |||||
Net Assets | $ | 480,932,046 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 535,795,194 | |||
Distributable earnings (loss) | (54,863,148) | ||||
$ | 480,932,046 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $83,705,005 | 9,298,959 | $9.00 | ||||||||
G Class, $0.01 Par Value | $397,227,041 | 43,073,354 | $9.22 |
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $608,957) | $ | 4,961,518 | |||
Securities lending, net | 139,894 | ||||
Interest | 94,114 | ||||
5,195,526 | |||||
Expenses: | |||||
Management fees | 2,913,314 | ||||
Directors' fees and expenses | 7,970 | ||||
Other expenses | 2,689 | ||||
2,923,973 | |||||
Fees waived(1) | (2,297,398) | ||||
626,575 | |||||
Net investment income (loss) | 4,568,951 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | (18,524,162) | ||||
Foreign currency translation transactions | 59,913 | ||||
(18,464,249) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 6,102,517 | ||||
Translation of assets and liabilities in foreign currencies | (8,849) | ||||
6,093,668 | |||||
Net realized and unrealized gain (loss) | (12,370,581) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (7,801,630) |
(1)Amount consists of $17,232 and $2,280,166 for Investor Class and G Class, respectively.
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 4,568,951 | $ | 6,507,109 | ||||
Net realized gain (loss) | (18,464,249) | (70,619,846) | ||||||
Change in net unrealized appreciation (depreciation) | 6,093,668 | (70,502,122) | ||||||
Net increase (decrease) in net assets resulting from operations | (7,801,630) | (134,614,859) | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | — | (18,910,988) | ||||||
G Class | (2,818,350) | (85,753,857) | ||||||
Decrease in net assets from distributions | (2,818,350) | (104,664,845) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 22,562,928 | 171,552,738 | ||||||
Net increase (decrease) in net assets | 11,942,948 | (67,726,966) | ||||||
Net Assets | ||||||||
Beginning of period | 468,989,098 | 536,716,064 | ||||||
End of period | $ | 480,932,046 | $ | 468,989,098 |
See Notes to Financial Statements.
11
Notes to Financial Statements |
MAY 31, 2023 (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 (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 value of investments of the fund is determined by American Century Investment Management, Inc. (ACIM) (the investment advisor), as the valuation designee, pursuant to its valuation policies and procedures. The Board of Directors oversees the valuation designee and reviews its valuation policies and procedures at least annually.
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 valuation designee determines that the market price for a portfolio security is not readily available or is believed by the valuation designee to be unreliable, such security is valued at fair value as determined in good faith by the valuation designee, in accordance with its policies and procedures. Circumstances that may cause the fund to determine that market quotations are not available or reliable include, but are not limited to: when there is a significant event subsequent to the market quotation; trading in a security has been halted during the trading day; or trading in a security is insufficient or did not take place due to a closure or holiday.
The valuation designee 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; regulatory news, 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 valuation designee also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that it deems appropriate. The valuation designee 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.
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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 ACIM has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund's policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
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
13
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, 2023.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 16,961,067 | — | — | — | $ | 16,961,067 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 16,961,067 |
(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, 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), 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, 2023, 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, 2024 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.
The annual management fee and the effective annual management fee after waiver for each class for the period ended May 31, 2023 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.
14
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 $244,990 and $202,266, respectively. The effect of interfund transactions on the Statement of Operations was $(13,872) 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, 2023 were $315,372,859 and $289,220,366, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2023 | Year ended November 30, 2022 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 120,000,000 | 120,000,000 | ||||||||||||
Sold | 826,444 | $ | 7,504,109 | 48,640 | $ | 724,732 | ||||||||
Issued in reinvestment of distributions | — | — | 1,560,313 | 18,910,988 | ||||||||||
Redeemed | (77,887) | (720,167) | (118,130) | (1,760,125) | ||||||||||
748,557 | 6,783,942 | 1,490,823 | 17,875,595 | |||||||||||
G Class/Shares Authorized | 500,000,000 | 300,000,000 | ||||||||||||
Sold | 3,535,427 | 32,998,242 | 6,809,526 | 73,340,355 | ||||||||||
Issued in reinvestment of distributions | 303,048 | 2,818,350 | 7,000,315 | 85,753,857 | ||||||||||
Redeemed | (2,118,625) | (20,037,606) | (545,593) | (5,417,069) | ||||||||||
1,719,850 | 15,778,986 | 13,264,248 | 153,677,143 | |||||||||||
Net increase (decrease) | 2,468,407 | $ | 22,562,928 | 14,755,071 | $ | 171,552,738 |
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 | |||||||||||
Canada | $ | 13,820,331 | $ | 23,515,645 | — | ||||||
Israel | 12,280,304 | — | — | ||||||||
United Kingdom | 1,504,634 | 82,578,623 | — | ||||||||
Other Countries | — | 337,775,961 | — | ||||||||
Exchange-Traded Funds | 2,408,833 | — | — | ||||||||
Short-Term Investments | 16,976,379 | 8,772,106 | — | ||||||||
$ | 46,990,481 | $ | 452,642,335 | — |
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 | $ | 468,258,097 | |||
Gross tax appreciation of investments | $ | 47,519,544 | |||
Gross tax depreciation of investments | (16,144,825) | ||||
Net tax appreciation (depreciation) of investments | $ | 31,374,719 |
16
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, 2022, the fund had accumulated short-term capital losses of $(70,884,862), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income
tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
17
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $9.21 | 0.03 | (0.24) | (0.21) | — | — | — | $9.00 | (2.28)% | 1.43%(4) | 1.47%(4) | 0.68%(4) | 0.64%(4) | 59% | $83,705 | ||||||||||||||||||||||||||||||||
2022 | $15.01 | 0.02 | (3.12) | (3.10) | (0.10) | (2.60) | (2.70) | $9.21 | (24.94)% | 1.44% | 1.48% | 0.20% | 0.16% | 107% | $78,762 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $9.44 | 0.10 | (0.25) | (0.15) | (0.07) | — | (0.07) | $9.22 | (1.64)% | 0.00%(4)(5) | 1.12%(4) | 2.11%(4) | 0.99%(4) | 59% | $397,227 | ||||||||||||||||||||||||||||||||
2022 | $15.34 | 0.17 | (3.16) | (2.99) | (0.31) | (2.60) | (2.91) | $9.44 | (23.82)% | 0.01% | 1.13% | 1.63% | 0.51% | 107% | $390,227 | ||||||||||||||||||||||||||||||||
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 |
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, 2023 (unaudited).
(4)Annualized.
(5)Ratio was less than 0.005%.
*The amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of the fund in relation to income earned and/or fluctuations in the fair value of the fund's investments.
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, including members of ACIM’s Investment Oversight Committee who are members of ACIM’s Investment Management and Global Analytics departments, conduct the day-to-day operation of the program pursuant to the program.
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 investments held by the Fund 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, 2022 through December 31, 2022. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
20
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding at the IRS default rate of 10%.* 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.
You may elect a different withholding rate, or request zero withholding, by submitting an acceptable IRS Form W-4R election with your distribution request. You may notify us of your W-4R election by telephone, on our distribution forms, on IRS Form W-4R, or through other acceptable electronic means. If your withholding election is for an automatic withdrawal plan, you have the right to revoke your election at any time and any election you make will remain in effect until revoked by filing a new election.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld according to state regulations if, at the time of your distribution, your tax residency is within one of the mandatory withholding states.
*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.
21
Notes | ||||||||||||||||||||
22
Notes | ||||||||||||||
23
Notes | ||||||||||||||
24
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Contact Us | americancentury.com | |||||||
Automated Information Line | 1-800-345-8765 | |||||||
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |||||||
Investors Using Advisors | 1-800-378-9878 | |||||||
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |||||||
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |||||||
Telecommunications Relay Service for the Deaf | 711 | |||||||
American Century World Mutual Funds, Inc. | ||||||||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||||||||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||||||||
©2023 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92628 2307 |
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Semiannual Report | |||||
May 31, 2023 | |||||
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 |
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Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2023. 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.
Year-to-Date Rebound Lifted Global Stock Returns
After ending 2022 on a disappointing note, global stocks generally rebounded in the first five months of 2023. This bounce back, which occurred despite relentless volatility and ongoing central bank rate hikes, led to six-month gains for most global stock indices.
After climbing to multidecade highs in mid- to late-2022, U.S. and European inflation moderated through the end of the reporting period. This dynamic, combined with mounting recession worries, prompted investors to recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to raise rates, and markets remained volatile.
Beginning in March, high-profile bank failures in the U.S. and Europe highlighted the growing risks to the global financial system and economic growth. Market volatility escalated, but quick action from U.S. and European regulators helped restore market order.
Still, heightened uncertainty surrounding the banking industry and credit availability further fueled recession fears. Those worries strengthened investor expectations for a near-term end to central bank tightening and potential rate cuts later in the year. In the eurozone, recession worries turned to recession reality, as revised data confirmed the region’s economy contracted in the fourth quarter of 2022 and the first quarter of 2023.
Despite slowing growth and ongoing volatility, most U.S. and global stock indices advanced for the period. Non-U.S. developed markets stocks modestly outperformed U.S. stocks. Meanwhile, global growth concerns and China’s uneven post-COVID-19 reopening weighed on emerging markets stocks, which modestly declined for the period.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of still-high inflation, tighter financial conditions, banking industry turbulence and recession risk. In addition, increasingly tense geopolitical considerations complicate the market backdrop.
We appreciate your confidence in us during these extraordinary times. American Century Investments has a long history of helping clients weather unpredictable and volatile markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
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Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 97.4% | ||||
Short-Term Investments | 6.1% | ||||
Other Assets and Liabilities | (3.5)% | ||||
Top Five Countries | % of net assets | ||||
United Kingdom | 19.6% | ||||
Japan | 18.9% | ||||
France | 11.3% | ||||
Germany | 10.0% | ||||
Australia | 6.8% |
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, 2022 to May 31, 2023.
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 mutual 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 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 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 12/1/22 | Ending Account Value 5/31/23 | Expenses Paid During Period(1) 12/1/22 - 5/31/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,041.90 | $5.70 | 1.12% | ||||||||||
I Class | $1,000 | $1,042.10 | $4.68 | 0.92% | ||||||||||
A Class | $1,000 | $1,039.80 | $6.97 | 1.37% | ||||||||||
C Class | $1,000 | $1,035.90 | $10.76 | 2.12% | ||||||||||
R Class | $1,000 | $1,039.60 | $8.24 | 1.62% | ||||||||||
R6 Class | $1,000 | $1,043.20 | $3.92 | 0.77% | ||||||||||
G Class | $1,000 | $1,047.20 | $0.10 | 0.02% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,019.35 | $5.64 | 1.12% | ||||||||||
I Class | $1,000 | $1,020.34 | $4.63 | 0.92% | ||||||||||
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% | ||||||||||
R6 Class | $1,000 | $1,021.09 | $3.88 | 0.77% | ||||||||||
G Class | $1,000 | $1,024.83 | $0.10 | 0.02% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
5
Schedule of Investments |
MAY 31, 2023 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 97.4% | ||||||||
Australia — 6.8% | ||||||||
ANZ Group Holdings Ltd. | 734,708 | $ | 10,928,461 | |||||
BHP Group Ltd. | 929,653 | 25,438,186 | ||||||
BlueScope Steel Ltd. | 331,536 | 3,998,370 | ||||||
Fortescue Metals Group Ltd. | 851,507 | 10,662,115 | ||||||
Origin Energy Ltd. | 2,762,557 | 14,970,138 | ||||||
Rio Tinto Ltd. | 30,295 | 2,111,078 | ||||||
Sonic Healthcare Ltd. | 486,609 | 11,129,325 | ||||||
South32 Ltd. | 3,674,440 | 9,393,889 | ||||||
Westpac Banking Corp. | 60,976 | 818,520 | ||||||
Woodside Energy Group Ltd. | 52,138 | 1,153,659 | ||||||
90,603,741 | ||||||||
Austria — 0.8% | ||||||||
Erste Group Bank AG | 229,007 | 7,439,344 | ||||||
OMV AG | 75,425 | 3,369,124 | ||||||
10,808,468 | ||||||||
Belgium — 0.4% | ||||||||
UCB SA | 63,444 | 5,540,671 | ||||||
Canada — 3.5% | ||||||||
AltaGas Ltd. | 275,808 | 4,677,053 | ||||||
Bank of Nova Scotia | 26,122 | 1,261,746 | ||||||
Brookfield Asset Management Ltd., Class A(1) | 127,907 | 3,910,232 | ||||||
Cenovus Energy, Inc. | 268,488 | 4,289,875 | ||||||
Great-West Lifeco, Inc.(1) | 323,940 | 9,170,545 | ||||||
Manulife Financial Corp. | 531,653 | 9,849,777 | ||||||
Power Corp. of Canada | 309,708 | 8,017,045 | ||||||
Restaurant Brands International, Inc. | 70,331 | 5,106,316 | ||||||
46,282,589 | ||||||||
Denmark — 0.7% | ||||||||
AP Moller - Maersk A/S, B Shares | 5,656 | 9,518,975 | ||||||
Finland — 0.3% | ||||||||
Nokia Oyj | 976,974 | 3,952,276 | ||||||
France — 11.3% | ||||||||
Air Liquide SA | 23,489 | 3,935,647 | ||||||
ArcelorMittal SA(1) | 209,984 | 5,237,779 | ||||||
AXA SA | 431,740 | 12,240,122 | ||||||
BNP Paribas SA(1) | 120,560 | 7,009,147 | ||||||
Cie de Saint-Gobain | 312,218 | 17,338,863 | ||||||
Credit Agricole SA(1) | 1,252,511 | 14,398,159 | ||||||
Engie SA | 531,132 | 7,986,421 | ||||||
L'Oreal SA | 15,759 | 6,747,152 | ||||||
Publicis Groupe SA | 150,892 | 11,206,424 | ||||||
Safran SA | 35,402 | 5,141,952 | ||||||
Sanofi(1) | 116,886 | 11,925,525 | ||||||
Schneider Electric SE | 20,472 | 3,541,630 | ||||||
Societe Generale SA(1) | 509,667 | 11,865,286 | ||||||
TotalEnergies SE | 579,411 | 32,696,618 | ||||||
151,270,725 |
6
Shares | Value | |||||||
Germany — 10.0% | ||||||||
Allianz SE | 126,464 | $ | 27,082,084 | |||||
BASF SE | 262,612 | 12,489,339 | ||||||
Bayerische Motoren Werke AG | 18,814 | 2,051,766 | ||||||
Deutsche Post AG | 221,386 | 9,983,142 | ||||||
E.ON SE | 1,644,559 | 19,937,489 | ||||||
Henkel AG & Co. KGaA, Preference Shares | 172,866 | 13,797,027 | ||||||
Mercedes-Benz Group AG | 124,590 | 9,313,544 | ||||||
SAP SE | 52,214 | 6,846,598 | ||||||
Siemens AG | 153,596 | 25,276,206 | ||||||
Volkswagen AG, Preference Shares | 56,404 | 7,066,388 | ||||||
133,843,583 | ||||||||
Hong Kong — 3.0% | ||||||||
CK Asset Holdings Ltd. | 1,583,000 | 8,532,625 | ||||||
CK Hutchison Holdings Ltd. | 472,000 | 2,845,537 | ||||||
Power Assets Holdings Ltd. | 1,585,500 | 8,537,630 | ||||||
Sun Hung Kai Properties Ltd. | 598,000 | 7,618,884 | ||||||
Swire Pacific Ltd., Class A | 738,500 | 4,930,854 | ||||||
WH Group Ltd. | 15,993,500 | 8,361,283 | ||||||
40,826,813 | ||||||||
Ireland — 0.7% | ||||||||
CRH PLC | 205,644 | 9,731,614 | ||||||
Israel — 1.0% | ||||||||
Bank Hapoalim BM | 490,751 | 3,950,517 | ||||||
Bank Leumi Le-Israel BM | 253,751 | 1,779,511 | ||||||
ICL Group Ltd. | 499,420 | 2,719,345 | ||||||
Nice Ltd.(2) | 22,541 | 4,622,239 | ||||||
13,071,612 | ||||||||
Italy — 4.2% | ||||||||
Assicurazioni Generali SpA | 967,160 | 18,373,133 | ||||||
Intesa Sanpaolo SpA | 7,701,162 | 17,885,587 | ||||||
Mediobanca Banca di Credito Finanziario SpA | 448,134 | 4,953,516 | ||||||
Stellantis NV(1) | 975,886 | 14,870,981 | ||||||
56,083,217 | ||||||||
Japan — 18.9% | ||||||||
AGC, Inc.(1) | 64,100 | 2,334,803 | ||||||
Astellas Pharma, Inc. | 416,100 | 6,583,595 | ||||||
Canon, Inc.(1) | 575,100 | 14,254,944 | ||||||
Hitachi Ltd. | 61,300 | 3,527,967 | ||||||
Honda Motor Co. Ltd. | 520,200 | 14,802,143 | ||||||
Inpex Corp. | 1,273,600 | 13,382,305 | ||||||
ITOCHU Corp.(1) | 523,900 | 17,685,801 | ||||||
Japan Post Bank Co. Ltd. | 465,300 | 3,473,735 | ||||||
Japan Post Insurance Co. Ltd. | 256,300 | 3,841,721 | ||||||
KDDI Corp. | 89,400 | 2,756,337 | ||||||
Marubeni Corp. | 789,700 | 11,254,215 | ||||||
Mitsubishi Corp. | 561,900 | 22,464,764 | ||||||
Mitsubishi Electric Corp. | 513,800 | 6,687,895 | ||||||
Mitsui & Co. Ltd. | 663,800 | 20,916,343 | ||||||
Mizuho Financial Group, Inc. | 605,100 | 8,894,896 | ||||||
MS&AD Insurance Group Holdings, Inc. | 321,600 | 11,019,991 | ||||||
Nippon Yusen KK(1) | 245,200 | 5,218,302 |
7
Shares | Value | |||||||
Otsuka Holdings Co. Ltd. | 153,600 | $ | 5,698,825 | |||||
Panasonic Holdings Corp. | 677,200 | 7,073,140 | ||||||
Sompo Holdings, Inc. | 139,100 | 5,654,725 | ||||||
SUMCO Corp. | 228,700 | 3,255,390 | ||||||
Sumitomo Corp. | 388,800 | 7,337,943 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 479,600 | 19,462,961 | ||||||
Takeda Pharmaceutical Co. Ltd. | 673,100 | 21,422,121 | ||||||
Tokyo Gas Co. Ltd. | 301,200 | 6,417,055 | ||||||
Toyota Motor Corp. | 576,600 | 7,854,334 | ||||||
253,276,251 | ||||||||
Netherlands — 4.6% | ||||||||
Aegon NV | 1,191,434 | 5,235,368 | ||||||
Coca-Cola Europacific Partners PLC | 167,478 | 10,448,952 | ||||||
ING Groep NV | 1,115,992 | 13,750,237 | ||||||
Koninklijke Ahold Delhaize NV | 558,635 | 17,710,039 | ||||||
NN Group NV | 185,008 | 6,674,570 | ||||||
Randstad NV | 159,538 | 7,826,248 | ||||||
61,645,414 | ||||||||
Norway — 1.0% | ||||||||
Norsk Hydro ASA | 858,135 | 5,193,713 | ||||||
Telenor ASA | 199,929 | 2,055,838 | ||||||
Yara International ASA(1) | 166,822 | 6,233,960 | ||||||
13,483,511 | ||||||||
Singapore — 0.7% | ||||||||
Jardine Cycle & Carriage Ltd. | 194,800 | 4,656,284 | ||||||
Singapore Telecommunications Ltd. | 2,529,100 | 4,652,254 | ||||||
9,308,538 | ||||||||
South Korea — 0.3% | ||||||||
Samsung SDI Co. Ltd. | 6,667 | 3,601,510 | ||||||
Spain — 3.0% | ||||||||
Banco Bilbao Vizcaya Argentaria SA | 2,909,787 | 19,130,932 | ||||||
Endesa SA | 451,373 | 9,788,172 | ||||||
Iberdrola SA | 144,851 | 1,768,894 | ||||||
Industria de Diseno Textil SA | 292,847 | 9,797,417 | ||||||
40,485,415 | ||||||||
Sweden — 1.4% | ||||||||
H & M Hennes & Mauritz AB, B Shares(1) | 948,400 | 11,849,531 | ||||||
Kinnevik AB, Class B(2) | 260,548 | 3,760,913 | ||||||
Telia Co. AB | 1,501,691 | 3,501,767 | ||||||
19,112,211 | ||||||||
Switzerland — 4.7% | ||||||||
ABB Ltd. | 115,400 | 4,215,231 | ||||||
Holcim AG(2) | 149,871 | 9,259,614 | ||||||
Kuehne + Nagel International AG | 19,215 | 5,478,025 | ||||||
Novartis AG | 321,937 | 30,856,604 | ||||||
Roche Holding AG | 26,246 | 8,359,584 | ||||||
Swiss Re AG | 42,765 | 4,287,069 | ||||||
62,456,127 | ||||||||
Taiwan — 0.3% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 259,000 | 4,687,338 | ||||||
United Kingdom — 19.6% | ||||||||
3i Group PLC | 204,745 | 4,994,746 |
8
Shares | Value | |||||||
abrdn PLC | 1,724,738 | $ | 4,273,817 | |||||
Anglo American PLC | 513,995 | 14,159,679 | ||||||
Aviva PLC | 1,656,153 | 8,130,484 | ||||||
Barclays PLC | 7,562,562 | 14,282,442 | ||||||
Barratt Developments PLC | 2,187,423 | 12,639,523 | ||||||
BP PLC | 5,552,951 | 31,196,599 | ||||||
GSK PLC | 819,126 | 13,748,385 | ||||||
Haleon PLC | 1,830,631 | 7,241,446 | ||||||
HSBC Holdings PLC | 3,049,986 | 22,354,273 | ||||||
J Sainsbury PLC | 3,943,996 | 13,291,474 | ||||||
Kingfisher PLC | 1,809,388 | 5,204,503 | ||||||
Land Securities Group PLC | 228,065 | 1,713,409 | ||||||
Legal & General Group PLC | 3,309,486 | 9,406,723 | ||||||
Lloyds Banking Group PLC | 5,839,381 | 3,217,310 | ||||||
NatWest Group PLC | 2,347,673 | 7,606,882 | ||||||
Persimmon PLC | 209,604 | 3,137,587 | ||||||
Rio Tinto PLC | 294,836 | 17,422,308 | ||||||
Shell PLC | 1,073,397 | 29,510,866 | ||||||
Standard Chartered PLC | 783,057 | 6,171,059 | ||||||
Tesco PLC | 5,059,604 | 16,440,719 | ||||||
Vodafone Group PLC | 16,835,449 | 16,009,332 | ||||||
262,153,566 | ||||||||
United States — 0.2% | ||||||||
NXP Semiconductors NV | 15,569 | 2,788,408 | ||||||
TOTAL COMMON STOCKS (Cost $1,244,766,415) | 1,304,532,573 | |||||||
SHORT-TERM INVESTMENTS — 6.1% | ||||||||
Money Market Funds — 4.7% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 33,361 | 33,361 | ||||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) | 61,993,501 | 61,993,501 | ||||||
62,026,862 | ||||||||
Repurchase Agreements — 1.4% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 11/30/28 - 11/15/43, valued at $2,576,921), in a joint trading account at 5.01%, dated 5/31/23, due 6/1/23 (Delivery value $2,521,139) | 2,520,788 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 1.875%, 2/15/32, valued at $16,720,892), at 5.05%, dated 5/31/23, due 6/1/23 (Delivery value $16,395,300) | 16,393,000 | |||||||
18,913,788 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $80,940,650) | 80,940,650 | |||||||
TOTAL INVESTMENT SECURITIES — 103.5% (Cost $1,325,707,065) | 1,385,473,223 | |||||||
OTHER ASSETS AND LIABILITIES — (3.5)% | (46,503,620) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 1,338,969,603 |
9
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Financials | 26.7% | ||||
Industrials | 14.6% | ||||
Materials | 10.4% | ||||
Health Care | 8.6% | ||||
Energy | 8.5% | ||||
Consumer Discretionary | 8.3% | ||||
Consumer Staples | 6.9% | ||||
Utilities | 5.6% | ||||
Information Technology | 3.3% | ||||
Communication Services | 2.8% | ||||
Real Estate | 1.7% | ||||
Short-Term Investments | 6.1% | ||||
Other Assets and Liabilities | (3.5)% |
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 $96,131,574. 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 $101,780,701, which includes securities collateral of $39,787,200.
See Notes to Financial Statements.
10
Statement of Assets and Liabilities |
MAY 31, 2023 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $1,263,713,564) — including $96,131,574 of securities on loan | $ | 1,323,479,722 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $61,993,501) | 61,993,501 | ||||
Total investment securities, at value (cost of $1,325,707,065) | 1,385,473,223 | ||||
Foreign currency holdings, at value (cost of $252) | 251 | ||||
Receivable for capital shares sold | 358,658 | ||||
Dividends and interest receivable | 15,602,783 | ||||
Securities lending receivable | 238,993 | ||||
1,401,673,908 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 61,993,501 | ||||
Payable for capital shares redeemed | 409,855 | ||||
Accrued management fees | 252,633 | ||||
Distribution and service fees payable | 1,776 | ||||
Accrued other expenses | 46,540 | ||||
62,704,305 | |||||
Net Assets | $ | 1,338,969,603 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 1,439,355,892 | |||
Distributable earnings (loss) | (100,386,289) | ||||
$ | 1,338,969,603 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $207,893,918 | 27,326,643 | $7.61 | ||||||||
I Class, $0.01 Par Value | $50,941,058 | 6,711,497 | $7.59 | ||||||||
A Class, $0.01 Par Value | $5,595,109 | 730,483 | $7.66 | ||||||||
C Class, $0.01 Par Value | $304,673 | 39,916 | $7.63 | ||||||||
R Class, $0.01 Par Value | $641,410 | 84,100 | $7.63 | ||||||||
R6 Class, $0.01 Par Value | $850,907 | 112,162 | $7.59 | ||||||||
G Class, $0.01 Par Value | $1,072,742,528 | 140,740,997 | $7.62 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except Class A, for which the maximum offering price per share was $8.13 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of Class A and Class C.
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $5,657,051) | $ | 43,839,239 | |||
Securities lending, net | 671,650 | ||||
Interest | 265,262 | ||||
44,776,151 | |||||
Expenses: | |||||
Management fees | 5,687,994 | ||||
Distribution and service fees: | |||||
A Class | 7,211 | ||||
C Class | 1,612 | ||||
R Class | 1,543 | ||||
Directors' fees and expenses | 22,724 | ||||
Other expenses | 83,636 | ||||
5,804,720 | |||||
Fees waived - G Class | (4,219,719) | ||||
1,585,001 | |||||
Net investment income (loss) | 43,191,150 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | 18,857,457 | ||||
Foreign currency translation transactions | (5,840) | ||||
18,851,617 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 5,751,169 | ||||
Translation of assets and liabilities in foreign currencies | (378,202) | ||||
5,372,967 | |||||
Net realized and unrealized gain (loss) | 24,224,584 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 67,415,734 |
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 43,191,150 | $ | 44,915,521 | ||||
Net realized gain (loss) | 18,851,617 | (110,037,725) | ||||||
Change in net unrealized appreciation (depreciation) | 5,372,967 | 21,921,974 | ||||||
Net increase (decrease) in net assets resulting from operations | 67,415,734 | (43,200,230) | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (5,178,587) | (699,499) | ||||||
I Class | (1,348,681) | (2,345,967) | ||||||
A Class | (126,749) | (279,208) | ||||||
C Class | (6,798) | (24,071) | ||||||
R Class | (11,230) | (35,572) | ||||||
R6 Class | (21,073) | (40,515) | ||||||
G Class | (37,229,430) | (34) | ||||||
Decrease in net assets from distributions | (43,922,548) | (3,424,866) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (8,037,099) | 1,299,648,521 | ||||||
Net increase (decrease) in net assets | 15,456,087 | 1,253,023,425 | ||||||
Net Assets | ||||||||
Beginning of period | 1,323,513,516 | 70,490,091 | ||||||
End of period | $ | 1,338,969,603 | $ | 1,323,513,516 |
See Notes to Financial Statements.
13
Notes to Financial Statements |
MAY 31, 2023 (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 value of investments of the fund is determined by American Century Investment Management, Inc. (ACIM) (the investment advisor), as the valuation designee, pursuant to its valuation policies and procedures. The Board of Directors oversees the valuation designee and reviews its valuation policies and procedures at least annually.
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 valuation designee determines that the market price for a portfolio security is not readily available or is believed by the valuation designee to be unreliable, such security is valued at fair value as determined in good faith by the valuation designee, in accordance with its policies and procedures. Circumstances that may cause the fund to determine that market quotations are not available or reliable include, but are not limited to: when there is a significant event subsequent to the market quotation; trading in a security has been halted during the trading day; or trading in a security is insufficient or did not take place due to a closure or holiday.
The valuation designee 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; regulatory news, 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 valuation designee also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that it deems appropriate. The valuation designee 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.
14
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 ACIM has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund's policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
15
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, 2023.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 61,993,501 | — | — | — | $ | 61,993,501 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 61,993,501 |
(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, 53% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The investment advisor agreed to waive the G Class's management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors.
The annual management fee for each class is as follows:
Investor Class | I Class | A Class | C Class | R Class | R6 Class | G Class | ||||||||||||||
1.10% | 0.90% | 1.10% | 1.10% | 1.10% | 0.75% | 0.00%(1) |
(1)Annual management fee before waiver was 0.75%.
16
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2023 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 and sales were $3,140,724 and $263,753, respectively. The effect of interfund transactions on the Statement of Operations was $12,120 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, 2023 were $681,552,233 and $723,468,274, respectively.
17
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2023 | Year ended November 30, 2022(1) | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 500,000,000 | 280,000,000 | ||||||||||||
Sold | 569,398 | $ | 4,339,952 | 527,783 | $ | 4,205,239 | ||||||||
Issued in connection with reorganization (Note 9) | — | — | 26,602,023 | 207,432,134 | ||||||||||
Issued in reinvestment of distributions | 709,366 | 5,171,278 | 82,397 | 677,909 | ||||||||||
Redeemed | (1,945,059) | (15,056,708) | (990,344) | (7,470,698) | ||||||||||
(666,295) | (5,545,478) | 26,221,859 | 204,844,584 | |||||||||||
I Class/Shares Authorized | 100,000,000 | 40,000,000 | ||||||||||||
Sold | 776,038 | 5,961,145 | 2,201,111 | 16,118,089 | ||||||||||
Issued in reinvestment of distributions | 185,361 | 1,347,573 | 285,829 | 2,345,524 | ||||||||||
Redeemed | (1,172,213) | (9,003,730) | (1,169,113) | (8,828,294) | ||||||||||
(210,814) | (1,695,012) | 1,317,827 | 9,635,319 | |||||||||||
A Class/Shares Authorized | 25,000,000 | 30,000,000 | ||||||||||||
Sold | 51,622 | 395,295 | 40,645 | 296,546 | ||||||||||
Issued in reinvestment of distributions | 17,125 | 125,866 | 33,420 | 277,341 | ||||||||||
Redeemed | (71,694) | (563,817) | (101,701) | (774,855) | ||||||||||
(2,947) | (42,656) | (27,636) | (200,968) | |||||||||||
C Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 1,133 | 8,938 | 1,457 | 11,252 | ||||||||||
Issued in reinvestment of distributions | 925 | 6,798 | 2,898 | 24,071 | ||||||||||
Redeemed | (12,749) | (94,823) | (41,469) | (322,106) | ||||||||||
(10,691) | (79,087) | (37,114) | (286,783) | |||||||||||
R Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 23,279 | 180,063 | 26,779 | 207,175 | ||||||||||
Issued in reinvestment of distributions | 1,528 | 11,197 | 4,288 | 35,501 | ||||||||||
Redeemed | (43,975) | (329,327) | (34,390) | (283,856) | ||||||||||
(19,168) | (138,067) | (3,323) | (41,180) | |||||||||||
R6 Class/Shares Authorized | 30,000,000 | 40,000,000 | ||||||||||||
Sold | 12,031 | 92,506 | 27,230 | 211,421 | ||||||||||
Issued in reinvestment of distributions | 2,903 | 21,073 | 4,941 | 40,515 | ||||||||||
Redeemed | (6,517) | (48,337) | (22,473) | (181,360) | ||||||||||
8,417 | 65,242 | 9,698 | 70,576 | |||||||||||
G Class/Shares Authorized | 1,750,000,000 | 925,000,000 | ||||||||||||
Sold | 17,307,735 | 129,851,974 | 11,949,751 | 83,412,748 | ||||||||||
Issued in connection with reorganization (Note 9) | — | — | 138,420,662 | 1,077,211,960 | ||||||||||
Issued in reinvestment of distributions | 5,120,967 | 37,229,430 | 4 | 34 | ||||||||||
Redeemed | (21,903,700) | (167,683,445) | (10,154,422) | (74,997,769) | ||||||||||
525,002 | (602,041) | 140,215,995 | 1,085,626,973 | |||||||||||
Net increase (decrease) | (376,496) | $ | (8,037,099) | 167,697,306 | $ | 1,299,648,521 |
(1)April 1, 2022 (commencement of sale) through November 30, 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 | $ | 13,237,360 | $ | 1,291,295,213 | — | ||||||
Short-Term Investments | 62,026,862 | 18,913,788 | — | ||||||||
$ | 75,264,222 | $ | 1,310,209,001 | — |
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.
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.
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 | $ | 1,333,215,053 | |||
Gross tax appreciation of investments | $ | 112,933,413 | |||
Gross tax depreciation of investments | (60,675,243) | ||||
Net tax appreciation (depreciation) of investments | $ | 52,258,170 |
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, 2022, the fund had accumulated short-term capital losses of $(195,385,665) and accumulated long-term capital losses of $(16,925,611), 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. As a result of a shift in ownership of the fund, the utilization of these capital losses in any given year are limited. Any remaining accumulated gains after application of this limitation will be distributed to shareholders.
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 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.
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 November 30, 2022 are as follows:
Net investment income (loss) | $ | 66,220,228 | |||
Net realized and unrealized gain (loss) | (133,494,908) | ||||
Net increase (decrease) in net assets resulting from operations | $ | (67,274,680) |
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.
20
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations*: | Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net 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 | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $7.49 | 0.21 | 0.10 | 0.31 | (0.19) | $7.61 | 4.19% | 1.12%(4) | 1.12%(4) | 5.27%(4) | 5.27%(4) | 49% | $207,894 | ||||||||||||||||||||||||||||
2022 | $8.37 | 0.35 | (0.84) | (0.49) | (0.39) | $7.49 | (6.24)% | 1.14% | 1.14% | 4.89% | 4.89% | 151% | $209,685 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $7.48 | 0.22 | 0.09 | 0.31 | (0.20) | $7.59 | 4.21% | 0.92%(4) | 0.92%(4) | 5.47%(4) | 5.47%(4) | 49% | $50,941 | ||||||||||||||||||||||||||||
2022 | $8.36 | 0.33 | (0.80) | (0.47) | (0.41) | $7.48 | (6.04)% | 0.94% | 0.94% | 5.09% | 5.09% | 151% | $51,756 | ||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $7.54 | 0.20 | 0.09 | 0.29 | (0.17) | $7.66 | 3.98% | 1.37%(4) | 1.37%(4) | 5.02%(4) | 5.02%(4) | 49% | $5,595 | ||||||||||||||||||||||||||||
2022 | $8.42 | 0.30 | (0.81) | (0.51) | (0.37) | $7.54 | (6.46)% | 1.39% | 1.39% | 4.64% | 4.64% | 151% | $5,527 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $7.50 | 0.16 | 0.10 | 0.26 | (0.13) | $7.63 | 3.59% | 2.12%(4) | 2.12%(4) | 4.27%(4) | 4.27%(4) | 49% | $305 | ||||||||||||||||||||||||||||
2022 | $8.37 | 0.23 | (0.80) | (0.57) | (0.30) | $7.50 | (7.13)% | 2.14% | 2.14% | 3.89% | 3.89% | 151% | $379 | ||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $7.50 | 0.19 | 0.10 | 0.29 | (0.16) | $7.63 | 3.96% | 1.62%(4) | 1.62%(4) | 4.77%(4) | 4.77%(4) | 49% | $641 | ||||||||||||||||||||||||||||
2022 | $8.38 | 0.27 | (0.81) | (0.54) | (0.34) | $7.50 | (6.74)% | 1.64% | 1.64% | 4.39% | 4.39% | 151% | $775 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $7.48 | 0.23 | 0.08 | 0.31 | (0.20) | $7.59 | 4.32% | 0.77%(4) | 0.77%(4) | 5.62%(4) | 5.62%(4) | 49% | $851 | ||||||||||||||||||||||||||||
2022 | $8.36 | 0.34 | (0.80) | (0.46) | (0.42) | $7.48 | (5.89)% | 0.79% | 0.79% | 5.24% | 5.24% | 151% | $776 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||
2023(3) | $7.52 | 0.24 | 0.10 | 0.34 | (0.24) | $7.62 | 4.72% | 0.02%(4) | 0.77%(4) | 6.37%(4) | 5.62%(4) | 49% | $1,072,743 | ||||||||||||||||||||||||||||
2022(5) | $8.18 | 0.28 | (0.83) | (0.55) | (0.11) | $7.52 | (6.80)% | 0.03%(4) | 0.78%(4) | 6.05%(4) | 5.30%(4) | 151%(6) | $1,054,615 |
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, 2023 (unaudited).
(4)Annualized.
(5)April 1, 2022 (commencement of sale) through November 30, 2022.
(6)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2022.
*The amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of the fund in relation to income earned and/or fluctuations in the fair value of the fund's investments.
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, including members of ACIM’s Investment Oversight Committee who are members of ACIM’s Investment Management and Global Analytics departments, conduct the day-to-day operation of the program pursuant to the program.
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 investments held by the Fund 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, 2022 through December 31, 2022. 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 at the IRS default rate of 10%.* 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.
You may elect a different withholding rate, or request zero withholding, by submitting an acceptable IRS Form W-4R election with your distribution request. You may notify us of your W-4R election by telephone, on our distribution forms, on IRS Form W-4R, or through other acceptable electronic means. If your withholding election is for an automatic withdrawal plan, you have the right to revoke your election at any time and any election you make will remain in effect until revoked by filing a new election.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld according to state regulations if, at the time of your distribution, your tax residency is within one of the mandatory withholding states.
*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 |
27
Notes |
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Contact Us | americancentury.com | |||||||
Automated Information Line | 1-800-345-8765 | |||||||
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |||||||
Investors Using Advisors | 1-800-378-9878 | |||||||
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |||||||
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |||||||
Telecommunications Relay Service for the Deaf | 711 | |||||||
American Century World Mutual Funds, Inc. | ||||||||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||||||||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||||||||
©2023 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92632 2307 |
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Semiannual Report | |||||
May 31, 2023 | |||||
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 |
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Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2023. 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.
Year-to-Date Rebound Lifted Global Stock Returns
After ending 2022 on a disappointing note, global stocks generally rebounded in the first five months of 2023. This bounce back, which occurred despite relentless volatility and ongoing central bank rate hikes, led to six-month gains for most global stock indices.
After climbing to multidecade highs in mid- to late-2022, U.S. and European inflation moderated through the end of the reporting period. This dynamic, combined with mounting recession worries, prompted investors to recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to raise rates, and markets remained volatile.
Beginning in March, high-profile bank failures in the U.S. and Europe highlighted the growing risks to the global financial system and economic growth. Market volatility escalated, but quick action from U.S. and European regulators helped restore market order.
Still, heightened uncertainty surrounding the banking industry and credit availability further fueled recession fears. Those worries strengthened investor expectations for a near-term end to central bank tightening and potential rate cuts later in the year. In the eurozone, recession worries turned to recession reality, as revised data confirmed the region’s economy contracted in the fourth quarter of 2022 and the first quarter of 2023.
Despite slowing growth and ongoing volatility, most U.S. and global stock indices advanced for the period. Non-U.S. developed markets stocks modestly outperformed U.S. stocks. Meanwhile, global growth concerns and China’s uneven post-COVID-19 reopening weighed on emerging markets stocks, which modestly declined for the period.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of still-high inflation, tighter financial conditions, banking industry turbulence and recession risk. In addition, increasingly tense geopolitical considerations complicate the market backdrop.
We appreciate your confidence in us during these extraordinary times. American Century Investments has a long history of helping clients weather unpredictable and volatile markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
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Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Fund Characteristics |
MAY 31, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 98.3% | ||||
Short-Term Investments | 0.8% | ||||
Other Assets and Liabilities | 0.9% | ||||
Top Five Countries | % of net assets | ||||
United Kingdom | 28.4% | ||||
France | 14.5% | ||||
China | 9.7% | ||||
Germany | 9.3% | ||||
Brazil | 8.9% |
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Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2022 to May 31, 2023.
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 mutual 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 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 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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Beginning Account Value 12/1/22 | Ending Account Value 5/31/23 | Expenses Paid During Period(1) 12/1/22 - 5/31/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,108.80 | $6.41 | 1.22% | ||||||||||
I Class | $1,000 | $1,108.50 | $5.36 | 1.02% | ||||||||||
A Class | $1,000 | $1,107.40 | $7.72 | 1.47% | ||||||||||
R Class | $1,000 | $1,104.80 | $9.03 | 1.72% | ||||||||||
R6 Class | $1,000 | $1,110.60 | $4.58 | 0.87% | ||||||||||
G Class | $1,000 | $1,115.70 | $0.37 | 0.07% | ||||||||||
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% | ||||||||||
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 | $1,024.58 | $0.35 | 0.07% |
(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, 2023 (UNAUDITED)
Shares | Value | |||||||
COMMON STOCKS — 98.3% | ||||||||
Belgium — 2.1% | ||||||||
UCB SA | 130,886 | $ | 11,430,493 | |||||
Brazil — 8.9% | ||||||||
Banco Bradesco SA | 7,011,626 | 18,284,709 | ||||||
Banco do Brasil SA | 1,540,800 | 13,609,140 | ||||||
TIM SA | 6,482,900 | 17,736,513 | ||||||
49,630,362 | ||||||||
Canada — 3.9% | ||||||||
ERO Copper Corp.(1) | 558,432 | 9,243,438 | ||||||
Linamar Corp. | 274,627 | 12,158,440 | ||||||
21,401,878 | ||||||||
China — 9.7% | ||||||||
Alibaba Group Holding Ltd.(1) | 1,220,300 | 12,144,879 | ||||||
Autohome, Inc., ADR | 288,275 | 8,250,431 | ||||||
Baidu, Inc., Class A(1) | 702,750 | 10,790,122 | ||||||
JD.com, Inc., Class A | 439,614 | 7,162,016 | ||||||
Tencent Holdings Ltd. | 390,200 | 15,441,897 | ||||||
53,789,345 | ||||||||
France — 14.5% | ||||||||
BNP Paribas SA | 199,967 | 11,625,731 | ||||||
Cie de Saint-Gobain | 216,261 | 12,009,941 | ||||||
Eiffage SA | 116,947 | 12,489,092 | ||||||
Rexel SA(1) | 767,006 | 15,745,672 | ||||||
Sanofi | 226,195 | 23,077,992 | ||||||
Sanofi, ADR | 112,133 | 5,721,026 | ||||||
80,669,454 | ||||||||
Germany — 9.3% | ||||||||
Bayerische Motoren Werke AG | 181,948 | 19,842,391 | ||||||
Continental AG | 233,939 | 15,614,864 | ||||||
Mercedes-Benz Group AG | 218,026 | 16,298,216 | ||||||
51,755,471 | ||||||||
Ireland — 3.4% | ||||||||
Smurfit Kappa Group PLC | 523,800 | 18,663,079 | ||||||
Italy — 0.4% | ||||||||
UniCredit SpA | 124,927 | 2,408,877 | ||||||
Japan — 5.3% | ||||||||
SUMCO Corp. | 1,641,500 | 23,365,644 | ||||||
Takeda Pharmaceutical Co. Ltd. | 197,900 | 6,298,377 | ||||||
29,664,021 | ||||||||
Netherlands — 1.8% | ||||||||
Signify NV | 393,799 | 10,049,185 | ||||||
Russia† | ||||||||
MMC Norilsk Nickel PJSC(2) | 76,933 | — | ||||||
South Korea — 5.1% | ||||||||
Hyundai Mobis Co. Ltd. | 83,097 | 13,949,597 | ||||||
Samsung Electronics Co. Ltd. | 271,934 | 14,589,385 | ||||||
28,538,982 |
6
Shares | Value | |||||||
Switzerland — 5.5% | ||||||||
Adecco Group AG | 570,009 | $ | 17,032,648 | |||||
Roche Holding AG | 42,023 | 13,384,698 | ||||||
30,417,346 | ||||||||
United Kingdom — 28.4% | ||||||||
ASOS PLC(1) | 769,516 | 3,303,971 | ||||||
AstraZeneca PLC, ADR | 263,268 | 19,239,625 | ||||||
Barclays PLC | 8,497,121 | 16,047,424 | ||||||
Barratt Developments PLC | 2,519,852 | 14,560,388 | ||||||
GSK PLC | 1,425,624 | 23,927,977 | ||||||
Hikma Pharmaceuticals PLC | 581,612 | 12,999,954 | ||||||
IMI PLC | 338,106 | 6,719,252 | ||||||
Kingfisher PLC | 3,247,395 | 9,340,770 | ||||||
Mondi PLC | 596,784 | 9,251,269 | ||||||
Nomad Foods Ltd.(1) | 111,376 | 1,898,961 | ||||||
Standard Chartered PLC | 1,195,456 | 9,421,063 | ||||||
Taylor Wimpey PLC | 10,009,209 | 14,256,441 | ||||||
WPP PLC | 1,577,425 | 16,766,818 | ||||||
157,733,913 | ||||||||
TOTAL COMMON STOCKS (Cost $554,030,379) | 546,152,406 | |||||||
SHORT-TERM INVESTMENTS — 0.8% | ||||||||
Money Market Funds† | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 7,520 | 7,520 | ||||||
Repurchase Agreements — 0.8% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.50% - 3.75%, 11/30/28 - 11/15/43, valued at $579,743), in a joint trading account at 5.01%, dated 5/31/23, due 6/1/23 (Delivery value $567,193) | 567,114 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.625%, 3/31/30, valued at $3,761,827), at 5.05%, dated 5/31/23, due 6/1/23 (Delivery value $3,688,517) | 3,688,000 | |||||||
4,255,114 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $4,262,634) | 4,262,634 | |||||||
TOTAL INVESTMENT SECURITIES — 99.1% (Cost $558,293,013) | 550,415,040 | |||||||
OTHER ASSETS AND LIABILITIES — 0.9% | 4,810,192 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 555,225,232 |
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Consumer Discretionary | 25.0% | ||||
Health Care | 20.9% | ||||
Industrials | 13.3% | ||||
Financials | 12.8% | ||||
Communication Services | 12.4% | ||||
Materials | 6.8% | ||||
Information Technology | 6.8% | ||||
Consumer Staples | 0.3% | ||||
Short-Term Investments | 0.8% | ||||
Other Assets and Liabilities | 0.9% |
7
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 may be subject to resale, redemption or transferability restrictions.
See Notes to Financial Statements.
8
Statement of Assets and Liabilities |
MAY 31, 2023 (UNAUDITED) | |||||
Assets | |||||
Investment securities, at value (cost of $558,293,013) | $ | 550,415,040 | |||
Foreign currency holdings, at value (cost of $1,386,600) | 769 | ||||
Receivable for capital shares sold | 533,693 | ||||
Dividends and interest receivable | 4,760,136 | ||||
555,709,638 | |||||
Liabilities | |||||
Payable for capital shares redeemed | 193,090 | ||||
Accrued management fees | 126,056 | ||||
Accrued foreign withholding tax reclaim expenses | 165,260 | ||||
484,406 | |||||
Net Assets | $ | 555,225,232 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 526,297,154 | |||
Distributable earnings (loss) | 28,928,078 | ||||
$ | 555,225,232 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $120,752,570 | 12,858,499 | $9.39 | ||||||||
I Class, $0.01 Par Value | $3,230,296 | 343,932 | $9.39 | ||||||||
A Class, $0.01 Par Value | $18,658 | 1,990 | $9.38 | ||||||||
R Class, $0.01 Par Value | $126,496 | 13,514 | $9.36 | ||||||||
R6 Class, $0.01 Par Value | $5,260 | 550 | $9.56 | ||||||||
G Class, $0.01 Par Value | $431,091,952 | 45,544,439 | $9.47 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except Class A, for which the maximum offering price per share was $9.95 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of Class A.
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $1,501,831) | $ | 16,214,291 | |||
Interest | 84,992 | ||||
16,299,283 | |||||
Expenses: | |||||
Management fees | 2,498,343 | ||||
Distribution and service fees: | |||||
A Class | 20 | ||||
R Class | 279 | ||||
Directors' fees and expenses | 9,349 | ||||
Foreign withholding tax reclaim expenses | 182,284 | ||||
Other expenses | 18,175 | ||||
2,708,450 | |||||
Fees waived - G Class | (1,791,512) | ||||
916,938 | |||||
Net investment income (loss) | 15,382,345 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | 33,207,649 | ||||
Foreign currency translation transactions | (259,602) | ||||
32,948,047 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 12,133,700 | ||||
Translation of assets and liabilities in foreign currencies | 12,566 | ||||
12,146,266 | |||||
Net realized and unrealized gain (loss) | 45,094,313 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 60,476,658 |
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2023 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | May 31, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 15,382,345 | $ | 27,097,740 | ||||
Net realized gain (loss) | 32,948,047 | (1,798,500) | ||||||
Change in net unrealized appreciation (depreciation) | 12,146,266 | (44,074,490) | ||||||
Net increase (decrease) in net assets resulting from operations | 60,476,658 | (18,775,250) | ||||||
Distributions to Shareholders | ||||||||
From earnings: | ||||||||
Investor Class | (4,999,905) | (7,073,080) | ||||||
I Class | (65,407) | (9,012) | ||||||
A Class | (593) | (534) | ||||||
R Class | (3,141) | (1,406) | ||||||
R6 Class | (228) | (234) | ||||||
G Class | (24,116,165) | (28,796,193) | ||||||
Decrease in net assets from distributions | (29,185,439) | (35,880,459) | ||||||
Capital Share Transactions | ||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (81,767,611) | 9,376,069 | ||||||
Net increase (decrease) in net assets | (50,476,392) | (45,279,640) | ||||||
Net Assets | ||||||||
Beginning of period | 605,701,624 | 650,981,264 | ||||||
End of period | $ | 555,225,232 | $ | 605,701,624 |
See Notes to Financial Statements.
11
Notes to Financial Statements |
MAY 31, 2023 (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 value of investments of the fund is determined by American Century Investment Management, Inc. (ACIM) (the investment advisor), as the valuation designee, pursuant to its valuation policies and procedures. The Board of Directors oversees the valuation designee and reviews its valuation policies and procedures at least annually.
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 valuation designee determines that the market price for a portfolio security is not readily available or is believed by the valuation designee to be unreliable, such security is valued at fair value as determined in good faith by the valuation designee, in accordance with its policies and procedures. Circumstances that may cause the fund to determine that market quotations are not available or reliable include, but are not limited to: when there is a significant event subsequent to the market quotation; trading in a security has been halted during the trading day; or trading in a security is insufficient or did not take place due to a closure or holiday.
The valuation designee 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; regulatory news, 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 valuation designee also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that it deems appropriate. The valuation designee 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.
12
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 ACIM has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund's policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
13
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation's investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation's transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 51% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that 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, 2023 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 0.06% for the period ended May 31, 2023.
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 $1,820,245 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $1,145,769 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, 2023 were $186,309,700 and $288,385,981, respectively.
14
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2023 | Year ended November 30, 2022 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 150,000,000 | 130,000,000 | ||||||||||||
Sold | 995,844 | $ | 9,615,991 | 1,519,386 | $ | 14,748,158 | ||||||||
Issued in reinvestment of distributions | 585,447 | 4,999,719 | 735,130 | 7,071,954 | ||||||||||
Redeemed | (4,312,016) | (38,927,766) | (2,336,943) | (20,948,979) | ||||||||||
(2,730,725) | (24,312,056) | (82,427) | 871,133 | |||||||||||
I Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||
Sold | 255,839 | 2,425,346 | 148,660 | 1,470,079 | ||||||||||
Issued in reinvestment of distributions | 1,418 | 12,093 | 920 | 8,837 | ||||||||||
Redeemed | (68,243) | (663,083) | (14,552) | (120,996) | ||||||||||
189,014 | 1,774,356 | 135,028 | 1,357,920 | |||||||||||
A Class/Shares Authorized | 35,000,000 | 40,000,000 | ||||||||||||
Sold | 369 | 3,458 | 188 | 1,500 | ||||||||||
Issued in reinvestment of distributions | 70 | 593 | 55 | 534 | ||||||||||
439 | 4,051 | 243 | 2,034 | |||||||||||
R Class/Shares Authorized | 35,000,000 | 40,000,000 | ||||||||||||
Sold | 20,748 | 195,970 | 12,901 | 113,679 | ||||||||||
Issued in reinvestment of distributions | 368 | 3,141 | 146 | 1,406 | ||||||||||
Redeemed | (16,200) | (152,819) | (7,656) | (69,811) | ||||||||||
4,916 | 46,292 | 5,391 | 45,274 | |||||||||||
R6 Class/Shares Authorized | 35,000,000 | 40,000,000 | ||||||||||||
Issued in reinvestment of distributions | 26 | 228 | 24 | 234 | ||||||||||
G Class/Shares Authorized | 600,000,000 | 340,000,000 | ||||||||||||
Sold | 1,012,030 | 9,448,272 | 8,004,444 | 72,183,755 | ||||||||||
Issued in reinvestment of distributions | 2,817,309 | 24,116,165 | 2,987,157 | 28,796,193 | ||||||||||
Redeemed | (10,085,603) | (92,844,919) | (9,486,129) | (93,880,474) | ||||||||||
(6,256,264) | (59,280,482) | 1,505,472 | 7,099,474 | |||||||||||
Net increase (decrease) | (8,792,594) | $ | (81,767,611) | 1,563,731 | $ | 9,376,069 |
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 | $ | 8,250,431 | $ | 45,538,914 | — | ||||||
France | 5,721,026 | 74,948,428 | — | ||||||||
United Kingdom | 21,138,586 | 136,595,327 | — | ||||||||
Other Countries | — | 253,959,694 | — | ||||||||
Short-Term Investments | 7,520 | 4,255,114 | — | ||||||||
$ | 35,117,563 | $ | 515,297,477 | — |
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 | $ | 572,414,465 | |||
Gross tax appreciation of investments | $ | 55,813,788 | |||
Gross tax depreciation of investments | (77,813,213) | ||||
Net tax appreciation (depreciation) of investments | $ | (21,999,425) |
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $8.88 | 0.22 | 0.69 | 0.91 | (0.34) | (0.06) | (0.40) | $9.39 | 10.88% | 1.22%(4) | 1.22%(4) | 4.49%(4) | 4.49%(4) | 33% | $120,753 | ||||||||||||||||||||||||||||||||
2022 | $9.76 | 0.32 | (0.76) | (0.44) | (0.16) | (0.28) | (0.44) | $8.88 | (5.03)% | 1.16% | 1.16% | 3.59% | 3.59% | 67% | $138,382 | ||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $8.89 | 0.31 | 0.61 | 0.92 | (0.36) | (0.06) | (0.42) | $9.39 | 10.85% | 1.02%(4) | 1.02%(4) | 4.69%(4) | 4.69%(4) | 33% | $3,230 | ||||||||||||||||||||||||||||||||
2022 | $9.78 | 0.33 | (0.76) | (0.43) | (0.18) | (0.28) | (0.46) | $8.89 | (4.81)% | 0.96% | 0.96% | 3.79% | 3.79% | 67% | $1,377 | ||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $8.85 | 0.23 | 0.68 | 0.91 | (0.32) | (0.06) | (0.38) | $9.38 | 10.74% | 1.47%(4) | 1.47%(4) | 4.24%(4) | 4.24%(4) | 33% | $19 | ||||||||||||||||||||||||||||||||
2022 | $9.73 | 0.29 | (0.76) | (0.47) | (0.13) | (0.28) | (0.41) | $8.85 | (5.28)% | 1.41% | 1.41% | 3.34% | 3.34% | 67% | $14 | ||||||||||||||||||||||||||||||||
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 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $8.83 | 0.22 | 0.67 | 0.89 | (0.30) | (0.06) | (0.36) | $9.36 | 10.48% | 1.72%(4) | 1.72%(4) | 3.99%(4) | 3.99%(4) | 33% | $126 | ||||||||||||||||||||||||||||||||
2022 | $9.71 | 0.26 | (0.75) | (0.49) | (0.11) | (0.28) | (0.39) | $8.83 | (5.43)% | 1.66% | 1.66% | 3.09% | 3.09% | 67% | $76 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $9.04 | 0.24 | 0.71 | 0.95 | (0.37) | (0.06) | (0.43) | $9.56 | 11.06% | 0.87%(4) | 0.87%(4) | 4.84%(4) | 4.84%(4) | 33% | $5 | ||||||||||||||||||||||||||||||||
2022 | $9.94 | 0.35 | (0.78) | (0.43) | (0.19) | (0.28) | (0.47) | $9.04 | (4.70)% | 0.81% | 0.81% | 3.94% | 3.94% | 67% | $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 | |||||||||||||||||||||||||||||||||||||||||||||||
2023(3) | $8.99 | 0.26 | 0.72 | 0.98 | (0.44) | (0.06) | (0.50) | $9.47 | 11.57% | 0.07%(4) | 0.87%(4) | 5.64%(4) | 4.84%(4) | 33% | $431,092 | ||||||||||||||||||||||||||||||||
2022 | $9.90 | 0.42 | (0.77) | (0.35) | (0.28) | (0.28) | (0.56) | $8.99 | (3.94)% | 0.01% | 0.81% | 4.74% | 3.94% | 67% | $465,848 | ||||||||||||||||||||||||||||||||
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, 2023 (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%.
*The amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of the fund in relation to income earned and/or fluctuations in the fair value of the fund's investments.
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, including members of ACIM’s Investment Oversight Committee who are members of ACIM’s Investment Management and Global Analytics departments, conduct the day-to-day operation of the program pursuant to the program.
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 investments held by the Fund 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, 2022 through December 31, 2022. 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 at the IRS default rate of 10%.* 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.
You may elect a different withholding rate, or request zero withholding, by submitting an acceptable IRS Form W-4R election with your distribution request. You may notify us of your W-4R election by telephone, on our distribution forms, on IRS Form W-4R, or through other acceptable electronic means. If your withholding election is for an automatic withdrawal plan, you have the right to revoke your election at any time and any election you make will remain in effect until revoked by filing a new election.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld according to state regulations if, at the time of your distribution, your tax residency is within one of the mandatory withholding states.
*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 |
22
Notes |
23
Notes |
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Contact Us | americancentury.com | |||||||
Automated Information Line | 1-800-345-8765 | |||||||
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |||||||
Investors Using Advisors | 1-800-378-9878 | |||||||
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |||||||
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |||||||
Telecommunications Relay Service for the Deaf | 711 | |||||||
American Century World Mutual Funds, Inc. | ||||||||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||||||||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||||||||
©2023 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-95206 2307 |
(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 27, 2023 |
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 27, 2023 |
By: | /s/ R. Wes Campbell | ||||||||||
Name: | R. Wes Campbell | ||||||||||
Title: | Treasurer and | ||||||||||
Chief Financial Officer | |||||||||||
(principal financial officer) | |||||||||||
Date: | July 27, 2023 |