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: | 11-30-2023 |
ITEM 1. REPORTS TO STOCKHOLDERS.
(a) Provided under separate cover.
![image5.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image5.jpg)
Annual Report | |||||
November 30, 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) |
The Securities and Exchange Commission (SEC) adopted new rules that will require annual and semiannual reports to transition to a new format known as a Tailored Shareholder Report beginning in July 2024. The amendments will require the transmission of a concise report highlighting key fund information to investors. The detailed financial statements will remain available on our website, will be delivered to investors free of charge upon request, and will continue to be filed with the SEC.
Table of Contents |
President’s Letter | |||||
Performance | |||||
Portfolio Commentary | |||||
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 | |||||
Report of Independent Registered Public Accounting Firm | |||||
Management | |||||
Approval of Management Agreement | |||||
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 |
![jthomasrev0514a14.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/jthomasrev0514a14.jpg)
Dear Investor:
Thank you for reviewing this annual report for the period ending November 30, 2023. Annual reports help convey important information about fund returns, including market factors that affect performance. For additional investment insights, please visit americancentury.com.
Stocks Rallied Amid Persistent Volatility
Despite ongoing challenges from a variety of sources, global stocks broadly delivered solid gains for the 12-month period. Amid persistent inflation, central banks continued to raise interest rates through much of the fiscal year. Additionally, banking industry turmoil, economic uncertainty and geopolitical unrest added to the volatile backdrop.
Overall, investor expectations for central banks to conclude their rate-hike campaigns fueled optimism. In the first half of the period, inflation’s steady slowdown, a series of bank failures and mounting recession worries prompted investors to regularly recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to lift interest rates through the third quarter of 2023.
By period-end, most central banks had paused their tightening campaigns alongside slower inflation rates and weakening growth data. While many observers believed the pauses indicated an end to the long-standing rate-hike programs, still-above-target inflation prompted policymakers to leave their options open. Nevertheless, financial markets rallied late in the period, convinced central banks would pivot to rate cuts in 2024.
In addition, corporate earnings generally remained better than expected, which also aided stock returns. Overall, most broad global stock indices delivered double-digit gains for the period. Growth stocks were particularly strong and significantly outperformed their value-stock peers. However, among small-cap stocks, the value style outperformed. Emerging markets stocks advanced but notably lagged their developed markets counterparts.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of persistent inflation, tighter financial conditions and recession risk. In addition, the Israel-Hamas war complicates the global backdrop and represents another key consideration for our investment teams.
Our firm has a long history of helping clients weather unpredictable and volatile markets, and we’re determined to meet today’s challenges. Thank you for your trust and confidence in American Century Investments.
With appreciation and respect,
![image48a16a.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image48a16a.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Performance |
Total Returns as of November 30, 2023 | ||||||||||||||||||||
Average Annual Returns | ||||||||||||||||||||
Ticker Symbol | 1 year | 5 years | 10 years | Since Inception | Inception Date | |||||||||||||||
Investor Class | TWMIX | -0.22% | 0.35% | 1.73% | — | 9/30/97 | ||||||||||||||
MSCI Emerging Markets Index | — | 4.21% | 2.34% | 2.12% | — | — | ||||||||||||||
I Class | AMKIX | 0.02% | 0.54% | 1.93% | — | 1/28/99 | ||||||||||||||
Y Class | AEYMX | 0.23% | 0.70% | — | 1.71% | 4/10/17 | ||||||||||||||
A Class | AEMMX | 5/12/99 | ||||||||||||||||||
No sales charge | -0.41% | 0.10% | 1.47% | — | ||||||||||||||||
With sales charge | -6.14% | -1.08% | 0.88% | — | ||||||||||||||||
C Class | ACECX | -1.18% | -0.65% | 0.73% | — | 12/18/01 | ||||||||||||||
R Class | AEMRX | -0.69% | -0.15% | 1.22% | — | 9/28/07 | ||||||||||||||
R5 Class | AEGMX | 0.02% | 0.54% | — | 1.56% | 4/10/17 | ||||||||||||||
R6 Class | AEDMX | 0.13% | 0.70% | 2.08% | — | 7/26/13 | ||||||||||||||
G Class | ACADX | 1.04% | — | — | -9.09% | 4/1/22 |
Average annual returns since inception are presented when ten years of performance history is not available. Fund returns would have been lower if a portion of the fees had not been waived.
C Class shares will automatically convert to A Class shares after being held for approximately eight years. C Class average annual returns do not reflect this conversion.
Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
3
Growth of $10,000 Over 10 Years | ||
$10,000 investment made November 30, 2013 | ||
Performance for other share classes will vary due to differences in fee structure. |
![chart-babbe38b46974d4e8eca.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/chart-babbe38b46974d4e8eca.jpg)
Value on November 30, 2023 | |||||
Investor Class — $11,867 | |||||
MSCI Emerging Markets Index — $12,334 | |||||
Ending value of Investor Class would have been lower if a portion of the fees had not been waived.
Total Annual Fund Operating Expenses | ||||||||||||||||||||||||||
Investor Class | I Class | Y Class | A Class | C Class | R Class | R5 Class | R6 Class | G Class | ||||||||||||||||||
1.26% | 1.06% | 0.91% | 1.51% | 2.26% | 1.76% | 1.06% | 0.91% | 0.91% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
4
Portfolio Commentary |
Portfolio Managers: Patricia Ribeiro and Sherwin Soo
Performance Summary
Emerging Markets returned -0.22%* for the 12 months ended November 30, 2023. The fund’s benchmark, the MSCI Emerging Markets Index, returned 4.21% for the same period. The fund’s return reflects operating expenses, while the index’s return does not.
Positioning in the consumer discretionary and financials sectors detracted from performance relative to the benchmark. Positioning in the materials and industrials sectors benefited relative performance. Style factors help explain our underperformance during the period. The recent market environment has not been supportive for our investment approach as a growth manager, given the outperformance of value stocks relative to growth stocks, driven by accelerated inflation rates and rising interest rates.
Consumer Discretionary and Financials Hampered Performance
Our overweight to the hotels, restaurants and leisure industry drove relative weakness within consumer discretionary. Casino operator Sands China was among the largest overall detractors. Shares declined late in the period amid concerns surrounding the impact of China’s unfavorable macroeconomic environment and lower gaming penetration rates.
Bank stocks were the largest detractors within financials, owing to stock selection and, to a lesser extent, an overweight to the banking industry. Shares of South Africa-based Capitec Bank Holdings declined amid concerns surrounding lower net interest margins.
Elsewhere, lack of exposure to PDD Holdings, the parent of discount e-commerce platform Pinduoduo and international shopping site Temu, weighed on relative returns as shares advanced sharply. Among our holdings, ENN Energy Holdings was a key detractor. The China-based natural gas distributor’s shares declined amid declining retail gas volumes, due to weaker demand from power plants and industrial customers.
Materials and Industrials Benefited Performance
Lack of exposure to index constituents that struggled during the 12-month period drove relative gains in the materials sector. The exception was our significant overweight to Mexico-based global building materials provider Cemex, whose shares rallied. Cemex benefited from lower costs, a pricing strategy that gained traction in key North American and European markets, supply/demand dynamics and easing supply chain bottlenecks, as well as the U.S. infrastructure cycle, which helped support volume and pricing.
Within industrials, battery materials maker Ecopro BM’s shares advanced sharply amid strong sales growth, increasing demand from electric vehicle manufacturers and friendly regulatory shifts in key markets. The company benefited from its leading position in high-nickel cathode materials and improving growth outlook, including potential order wins. We exited the position in April 2023 as our thesis for the stock matured.
MercadoLibre was a significant contributor. The e-commerce giant continued to benefit from an accelerating shift to digital commerce amid higher-for-longer interest rates, given the company’s leadership position in e-commerce and accelerating growth in the financial technology industry, supported by benefits of scale and moderating competition.
*All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the fund’s benchmark, other share classes may not. See page 3 for returns for all share classes.
5
Fund Characteristics |
NOVEMBER 30, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 99.8% | ||||
Short-Term Investments | —* | ||||
Other Assets and Liabilities | 0.2% | ||||
*Category is less than 0.05% of total net assets. | |||||
Top Five Countries | % of net assets | ||||
China | 23.8% | ||||
India | 15.2% | ||||
Taiwan | 14.9% | ||||
South Korea | 11.8% | ||||
Brazil | 8.8% |
6
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 June 1, 2023 to November 30, 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.
7
Beginning Account Value 6/1/23 | Ending Account Value 11/30/23 | Expenses Paid During Period(1) 6/1/23 - 11/30/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,041.40 | $6.50 | 1.27% | ||||||||||
I Class | $1,000 | $1,042.40 | $5.48 | 1.07% | ||||||||||
Y Class | $1,000 | $1,043.40 | $4.71 | 0.92% | ||||||||||
A Class | $1,000 | $1,039.70 | $7.77 | 1.52% | ||||||||||
C Class | $1,000 | $1,035.50 | $11.58 | 2.27% | ||||||||||
R Class | $1,000 | $1,039.60 | $9.05 | 1.77% | ||||||||||
R5 Class | $1,000 | $1,042.40 | $5.48 | 1.07% | ||||||||||
R6 Class | $1,000 | $1,043.50 | $4.71 | 0.92% | ||||||||||
G Class | $1,000 | $1,048.30 | $0.10 | 0.02% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,018.70 | $6.43 | 1.27% | ||||||||||
I Class | $1,000 | $1,019.70 | $5.42 | 1.07% | ||||||||||
Y Class | $1,000 | $1,020.46 | $4.66 | 0.92% | ||||||||||
A Class | $1,000 | $1,017.45 | $7.69 | 1.52% | ||||||||||
C Class | $1,000 | $1,013.69 | $11.46 | 2.27% | ||||||||||
R Class | $1,000 | $1,016.19 | $8.95 | 1.77% | ||||||||||
R5 Class | $1,000 | $1,019.70 | $5.42 | 1.07% | ||||||||||
R6 Class | $1,000 | $1,020.46 | $4.66 | 0.92% | ||||||||||
G Class | $1,000 | $1,024.97 | $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 183, 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.
8
Schedule of Investments |
NOVEMBER 30, 2023
Shares | Value | |||||||
COMMON STOCKS — 99.8% | ||||||||
Brazil — 8.8% | ||||||||
Banco BTG Pactual SA | 3,999,700 | $ | 28,928,865 | |||||
Embraer SA, ADR(1)(2) | 1,518,803 | 26,563,865 | ||||||
Hapvida Participacoes e Investimentos SA(1) | 23,445,755 | 20,720,845 | ||||||
Localiza Rent a Car SA | 1,099,209 | 13,368,139 | ||||||
Localiza Rent a Car SA(1) | 8,465 | 97,341 | ||||||
PRIO SA(1) | 6,258,500 | 58,655,358 | ||||||
Sendas Distribuidora SA | 3,810,300 | 9,986,260 | ||||||
Vale SA, ADR | 1,250,339 | 18,755,085 | ||||||
WEG SA | 1,674,200 | 11,632,885 | ||||||
188,708,643 | ||||||||
China — 23.8% | ||||||||
Aier Eye Hospital Group Co. Ltd., Class A | 4,365,890 | 10,413,733 | ||||||
Alibaba Group Holding Ltd., ADR(1) | 677,601 | 50,738,763 | ||||||
Baidu, Inc., Class A(1) | 904,250 | 13,418,264 | ||||||
BYD Co. Ltd., H Shares | 992,500 | 26,675,027 | ||||||
China Construction Bank Corp., H Shares | 57,108,000 | 33,019,468 | ||||||
China State Construction International Holdings Ltd. | 21,134,000 | 24,518,178 | ||||||
ENN Energy Holdings Ltd. | 1,442,000 | 9,953,077 | ||||||
H World Group Ltd., ADR(1) | 405,658 | 14,838,970 | ||||||
Industrial & Commercial Bank of China Ltd., H Shares | 33,521,740 | 15,950,560 | ||||||
Kweichow Moutai Co. Ltd., A Shares | 174,410 | 43,718,106 | ||||||
Li Ning Co. Ltd. | 2,037,500 | 5,669,964 | ||||||
Meituan, Class B(1) | 724,740 | 8,389,951 | ||||||
NetEase, Inc. | 2,050,600 | 46,258,165 | ||||||
Ping An Insurance Group Co. of China Ltd., H Shares | 1,962,500 | 9,001,302 | ||||||
Shenzhou International Group Holdings Ltd. | 1,236,000 | 12,374,722 | ||||||
Sungrow Power Supply Co. Ltd., A Shares | 835,799 | 9,719,749 | ||||||
Tencent Holdings Ltd. | 2,690,100 | 112,067,269 | ||||||
Trip.com Group Ltd.(1) | 903,800 | 31,744,597 | ||||||
Wuxi Biologics Cayman, Inc.(1) | 2,104,000 | 11,681,580 | ||||||
WuXi XDC Cayman, Inc.(1) | 4,410 | 16,147 | ||||||
Yantai Jereh Oilfield Services Group Co. Ltd., A Shares | 3,192,929 | 13,226,067 | ||||||
Yum China Holdings, Inc. | 124,529 | 5,377,162 | ||||||
508,770,821 | ||||||||
Hong Kong — 0.9% | ||||||||
Sands China Ltd.(1) | 7,761,200 | 19,034,294 | ||||||
India — 15.2% | ||||||||
Apollo Hospitals Enterprise Ltd. | 221,983 | 14,726,258 | ||||||
Bajaj Auto Ltd. | 254,160 | 18,597,167 | ||||||
Godrej Consumer Products Ltd. | 1,591,198 | 19,239,523 | ||||||
HDFC Bank Ltd. | 2,779,414 | 52,106,773 | ||||||
ICICI Bank Ltd., ADR | 2,638,901 | 58,504,435 | ||||||
Infosys Ltd., ADR | 1,158,303 | 20,328,218 | ||||||
MakeMyTrip Ltd.(1) | 334,481 | 14,125,133 | ||||||
Reliance Industries Ltd. | 1,825,294 | 52,097,595 | ||||||
Sun Pharmaceutical Industries Ltd. | 2,996,408 | 44,113,790 |
9
Shares | Value | |||||||
Varun Beverages Ltd. | 1,174,263 | $ | 15,589,585 | |||||
Zomato Ltd.(1) | 11,276,631 | 16,064,530 | ||||||
325,493,007 | ||||||||
Indonesia — 1.8% | ||||||||
Bank Rakyat Indonesia Persero Tbk PT | 111,310,900 | 37,881,796 | ||||||
Malaysia — 0.6% | ||||||||
CIMB Group Holdings Bhd | 11,113,709 | 13,476,787 | ||||||
Mexico — 4.0% | ||||||||
Cemex SAB de CV, ADR(1) | 5,740,941 | 39,669,903 | ||||||
Fomento Economico Mexicano SAB de CV, ADR | 51,507 | 6,535,723 | ||||||
Grupo Financiero Banorte SAB de CV, Class O | 4,090,075 | 38,059,586 | ||||||
84,265,212 | ||||||||
Peru — 0.5% | ||||||||
Credicorp Ltd. | 83,413 | 10,470,834 | ||||||
Philippines — 0.5% | ||||||||
Ayala Land, Inc. | 20,581,480 | 11,577,630 | ||||||
Russia(3)† | ||||||||
Novatek PJSC | 1,100,400 | 1 | ||||||
Saudi Arabia — 4.8% | ||||||||
Al Rajhi Bank | 1,525,017 | 31,085,364 | ||||||
Alinma Bank | 1,683,019 | 16,069,855 | ||||||
Arabian Contracting Services Co. | 249,118 | 12,303,144 | ||||||
Elm Co. | 114,156 | 22,679,413 | ||||||
Saudi Arabian Oil Co. | 2,326,709 | 20,570,488 | ||||||
102,708,264 | ||||||||
South Africa — 3.0% | ||||||||
Capitec Bank Holdings Ltd. | 152,939 | 15,933,538 | ||||||
Naspers Ltd., N Shares | 183,346 | 33,812,401 | ||||||
Shoprite Holdings Ltd. | 973,672 | 13,282,489 | ||||||
63,028,428 | ||||||||
South Korea — 11.8% | ||||||||
Hyundai Motor Co. | 73,950 | 10,529,311 | ||||||
NAVER Corp. | 92,747 | 14,908,511 | ||||||
Samsung Biologics Co. Ltd.(1) | 60,023 | 33,576,935 | ||||||
Samsung Electro-Mechanics Co. Ltd. | 66,173 | 7,456,850 | ||||||
Samsung Electronics Co. Ltd. | 2,497,058 | 140,803,381 | ||||||
SK Hynix, Inc. | 427,198 | 44,326,694 | ||||||
251,601,682 | ||||||||
Taiwan — 14.9% | ||||||||
Asustek Computer, Inc. | 545,000 | 6,871,688 | ||||||
Chailease Holding Co. Ltd. | 2,090,112 | 12,418,942 | ||||||
Delta Electronics, Inc. | 3,225,000 | 32,618,626 | ||||||
E Ink Holdings, Inc. | 1,962,000 | 11,455,544 | ||||||
E.Sun Financial Holding Co. Ltd. | 14,758,624 | 12,086,540 | ||||||
Far EasTone Telecommunications Co. Ltd. | 5,488,000 | 14,557,270 | ||||||
MediaTek, Inc. | 504,000 | 15,220,546 | ||||||
Nanya Technology Corp. | 5,566,000 | 13,338,917 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 10,876,713 | 198,958,129 | ||||||
317,526,202 | ||||||||
Thailand — 3.8% | ||||||||
Central Pattana PCL | 7,228,900 | 13,936,762 | ||||||
CP ALL PCL | 20,505,100 | 30,317,790 |
10
Shares | Value | |||||||
Kasikornbank PCL | 3,510,400 | $ | 12,966,520 | |||||
Minor International PCL | 15,709,200 | 12,181,615 | ||||||
PTT Exploration & Production PCL | 2,808,500 | 11,991,330 | ||||||
81,394,017 | ||||||||
Turkey — 1.6% | ||||||||
BIM Birlesik Magazalar AS | 3,187,145 | 34,024,952 | ||||||
United Arab Emirates — 2.1% | ||||||||
Emaar Properties PJSC | 21,311,883 | 44,022,810 | ||||||
United States — 1.7% | ||||||||
MercadoLibre, Inc.(1) | 22,563 | 36,562,439 | ||||||
TOTAL COMMON STOCKS (Cost $1,766,265,524) | 2,130,547,819 | |||||||
SHORT-TERM INVESTMENTS† | ||||||||
Money Market Funds† | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio(4) (Cost $303,426) | 303,426 | 303,426 | ||||||
TOTAL INVESTMENT SECURITIES — 99.8% (Cost $1,766,568,950) | 2,130,851,245 | |||||||
OTHER ASSETS AND LIABILITIES — 0.2% | 4,449,809 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 2,135,301,054 |
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Information Technology | 24.1% | ||||
Financials | 18.7% | ||||
Consumer Discretionary | 14.8% | ||||
Communication Services | 10.0% | ||||
Consumer Staples | 8.1% | ||||
Energy | 7.3% | ||||
Health Care | 6.3% | ||||
Industrials | 4.0% | ||||
Real Estate | 3.3% | ||||
Materials | 2.7% | ||||
Utilities | 0.5% | ||||
Short-Term Investments | —* | ||||
Other Assets and Liabilities | 0.2% |
*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 $294,829. 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 $303,426.
See Notes to Financial Statements.
11
Statement of Assets and Liabilities |
NOVEMBER 30, 2023 | |||||
Assets | |||||
Investment securities, at value (cost of $1,766,265,524) — including $294,829 of securities on loan | $ | 2,130,547,819 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $303,426) | 303,426 | ||||
Total investment securities, at value (cost of $1,766,568,950) | 2,130,851,245 | ||||
Foreign currency holdings, at value (cost of $8,528,028) | 8,528,028 | ||||
Receivable for investments sold | 27,130,681 | ||||
Receivable for capital shares sold | 2,759,929 | ||||
Dividends and interest receivable | 789,008 | ||||
Securities lending receivable | 317 | ||||
Other assets | 200,582 | ||||
2,170,259,790 | |||||
Liabilities | |||||
Disbursements in excess of demand deposit cash | 12,422,017 | ||||
Payable for collateral received for securities on loan | 303,426 | ||||
Payable for investments purchased | 14,663,240 | ||||
Payable for capital shares redeemed | 3,078,430 | ||||
Accrued management fees | 1,178,348 | ||||
Distribution and service fees payable | 17,327 | ||||
Accrued foreign taxes | 3,295,948 | ||||
34,958,736 | |||||
Net Assets | $ | 2,135,301,054 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 2,623,733,868 | |||
Distributable earnings (loss) | (488,432,814) | ||||
$ | 2,135,301,054 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $305,994,431 | 31,219,519 | $9.80 | ||||||||
I Class, $0.01 Par Value | $507,013,036 | 50,335,002 | $10.07 | ||||||||
Y Class, $0.01 Par Value | $33,189,448 | 3,286,830 | $10.10 | ||||||||
A Class, $0.01 Par Value | $38,619,555 | 4,095,089 | $9.43 | ||||||||
C Class, $0.01 Par Value | $8,931,514 | 1,055,325 | $8.46 | ||||||||
R Class, $0.01 Par Value | $5,308,901 | 561,266 | $9.46 | ||||||||
R5 Class, $0.01 Par Value | $9,248,763 | 917,353 | $10.08 | ||||||||
R6 Class, $0.01 Par Value | $460,847,117 | 45,702,427 | $10.08 | ||||||||
G Class, $0.01 Par Value | $766,148,289 | 75,105,565 | $10.20 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except A Class, for which the maximum offering price per share was $10.01 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of A Class and C Class.
See Notes to Financial Statements.
12
Statement of Operations |
YEAR ENDED NOVEMBER 30, 2023 | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $5,690,519) | $ | 56,459,967 | |||
Interest | 598,170 | ||||
Securities lending, net | 107,288 | ||||
57,165,425 | |||||
Expenses: | |||||
Management fees | 24,606,244 | ||||
Distribution and service fees: | |||||
A Class | 109,136 | ||||
C Class | 110,795 | ||||
R Class | 29,620 | ||||
Directors' fees and expenses | 84,398 | ||||
Other expenses | 434,149 | ||||
25,374,342 | |||||
Fees waived - G Class | (6,579,652) | ||||
18,794,690 | |||||
Net investment income (loss) | 38,370,735 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions (net of foreign tax expenses paid (refunded) of $1,069,954) | (273,557,572) | ||||
Foreign currency translation transactions | (1,550,617) | ||||
(275,108,189) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments (includes (increase) decrease in accrued foreign taxes of $(11,565)) | 243,227,117 | ||||
Translation of assets and liabilities in foreign currencies | (22,455) | ||||
243,204,662 | |||||
Net realized and unrealized gain (loss) | (31,903,527) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 6,467,208 |
See Notes to Financial Statements.
13
Statement of Changes in Net Assets |
YEARS ENDED NOVEMBER 30, 2023 AND NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | November 30, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 38,370,735 | $ | 35,247,272 | ||||
Net realized gain (loss) | (275,108,189) | (309,951,407) | ||||||
Change in net unrealized appreciation (depreciation) | 243,204,662 | (625,280,162) | ||||||
Net increase (decrease) in net assets resulting from operations | 6,467,208 | (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) | (542,582,034) | 420,922,848 | ||||||
Net increase (decrease) in net assets | (600,901,450) | (509,631,715) | ||||||
Net Assets | ||||||||
Beginning of period | 2,736,202,504 | 3,245,834,219 | ||||||
End of period | $ | 2,135,301,054 | $ | 2,736,202,504 |
See Notes to Financial Statements.
14
Notes to Financial Statements |
NOVEMBER 30, 2023
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.
15
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.
16
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 November 30, 2023.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 303,426 | — | — | — | $ | 303,426 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 303,426 |
(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, 20% 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.
17
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%.
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 November 30, 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.
Other Expenses — A fund’s other expenses may include interest charges, clearing exchange fees, proxy solicitation expenses, fees associated with the recovery of foreign tax reclaims and other miscellaneous expenses.
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 November 30, 2023 were $715,502,965 and $1,311,042,817, respectively.
18
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Year ended November 30, 2023 | Year ended November 30, 2022(1) | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 1,000,000,000 | 1,100,000,000 | ||||||||||||
Sold | 3,656,054 | $ | 36,283,668 | 6,048,510 | $ | 73,081,025 | ||||||||
Issued in reinvestment of distributions | 800,057 | 7,704,547 | 379,470 | 4,322,163 | ||||||||||
Redeemed | (9,949,067) | (98,170,889) | (10,249,865) | (115,441,774) | ||||||||||
(5,492,956) | (54,182,674) | (3,821,885) | (38,038,586) | |||||||||||
I Class/Shares Authorized | 1,400,000,000 | 1,520,000,000 | ||||||||||||
Sold | 18,371,410 | 186,971,811 | 38,584,764 | 446,185,226 | ||||||||||
Issued in reinvestment of distributions | 1,688,115 | 16,678,573 | 1,181,788 | 13,791,471 | ||||||||||
Redeemed | (50,178,089) | (504,979,214) | (77,797,712) | (853,066,174) | ||||||||||
(30,118,564) | (301,328,830) | (38,031,160) | (393,089,477) | |||||||||||
Y Class/Shares Authorized | 40,000,000 | 30,000,000 | ||||||||||||
Sold | 1,864,558 | 18,995,855 | 3,903,441 | 46,950,678 | ||||||||||
Issued in reinvestment of distributions | 82,397 | 814,907 | 43,474 | 508,209 | ||||||||||
Redeemed | (2,331,774) | (23,804,303) | (3,077,023) | (32,540,149) | ||||||||||
(384,819) | (3,993,541) | 869,892 | 14,918,738 | |||||||||||
A Class/Shares Authorized | 100,000,000 | 100,000,000 | ||||||||||||
Sold | 1,531,564 | 14,418,387 | 2,304,400 | 24,907,653 | ||||||||||
Issued in reinvestment of distributions | 62,812 | 583,523 | 27,169 | 298,592 | ||||||||||
Redeemed | (2,816,817) | (26,851,961) | (4,177,258) | (44,494,688) | ||||||||||
(1,222,441) | (11,850,051) | (1,845,689) | (19,288,443) | |||||||||||
C Class/Shares Authorized | 45,000,000 | 45,000,000 | ||||||||||||
Sold | 72,259 | 620,177 | 100,840 | 933,394 | ||||||||||
Issued in reinvestment of distributions | 22,066 | 185,358 | — | — | ||||||||||
Redeemed | (557,756) | (4,757,802) | (726,732) | (6,922,219) | ||||||||||
(463,431) | (3,952,267) | (625,892) | (5,988,825) | |||||||||||
R Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 185,739 | 1,770,769 | 206,455 | 2,241,994 | ||||||||||
Issued in reinvestment of distributions | 12,069 | 112,728 | 2,832 | 31,290 | ||||||||||
Redeemed | (262,324) | (2,443,366) | (165,026) | (1,819,630) | ||||||||||
(64,516) | (559,869) | 44,261 | 453,654 | |||||||||||
R5 Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 206,002 | 2,077,788 | 297,124 | 3,359,435 | ||||||||||
Issued in reinvestment of distributions | 23,973 | 237,095 | 10,433 | 121,852 | ||||||||||
Redeemed | (352,740) | (3,615,826) | (134,705) | (1,575,297) | ||||||||||
(122,765) | (1,300,943) | 172,852 | 1,905,990 | |||||||||||
R6 Class/Shares Authorized | 750,000,000 | 450,000,000 | ||||||||||||
Sold | 15,693,581 | 158,454,648 | 22,145,809 | 254,818,438 | ||||||||||
Issued in reinvestment of distributions | 1,563,411 | 15,446,501 | 821,931 | 9,591,938 | ||||||||||
Redeemed | (38,268,284) | (385,099,436) | (16,919,603) | (189,415,923) | ||||||||||
(21,011,292) | (211,198,287) | 6,048,137 | 74,994,453 | |||||||||||
G Class/Shares Authorized | 750,000,000 | 510,000,000 | ||||||||||||
Sold | 10,079,379 | 101,110,315 | 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 | (7,434,199) | (75,957,574) | (6,581,141) | (67,393,318) | ||||||||||
4,727,086 | 45,784,428 | 70,378,479 | 785,055,344 | |||||||||||
Net increase (decrease) | (54,153,698) | $ | (542,582,034) | 33,188,995 | $ | 420,922,848 |
(1)April 1, 2022 (commencement of sale) through November 30, 2022 for the G Class.
19
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 | $ | 45,318,950 | $ | 143,389,693 | — | ||||||
China | 70,954,895 | 437,815,926 | — | ||||||||
India | 92,957,786 | 232,535,221 | — | ||||||||
Mexico | 46,205,626 | 38,059,586 | — | ||||||||
Peru | 10,470,834 | — | — | ||||||||
United States | 36,562,439 | — | — | ||||||||
Other Countries | — | 976,276,863 | — | ||||||||
Short-Term Investments | 303,426 | — | — | ||||||||
$ | 302,773,956 | $ | 1,828,077,289 | — |
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
On December 19, 2023, the fund declared and paid the following per-share distributions from net investment income to shareholders of record on December 18, 2023.
Investor Class | I Class | Y Class | A Class | C Class | R Class | R5 Class | R6 Class | G Class | ||||||||||||||||||
$0.1308 | $0.1507 | $0.1656 | $0.1060 | $0.0315 | $0.0811 | $0.1507 | $0.1656 | $0.2549 |
20
The tax character of distributions paid during the years ended November 30, 2023 and November 30, 2022 were as follows:
2023 | 2022 | |||||||
Distributions Paid From | ||||||||
Ordinary income | $ | 64,786,624 | $ | 30,570,266 | ||||
Long-term capital gains | — | — |
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 federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments | $ | 1,794,606,947 | |||
Gross tax appreciation of investments | $ | 515,642,540 | |||
Gross tax depreciation of investments | (179,398,242) | ||||
Net tax appreciation (depreciation) of investments | 336,244,298 | ||||
Net tax appreciation (depreciation) on translation of assets and liabilities in foreign currencies | (3,318,882) | ||||
Net tax appreciation (depreciation) | $ | 332,925,416 | |||
Undistributed ordinary income | $ | 38,441,429 | |||
Accumulated short-term capital losses | $ | (671,425,496) | |||
Accumulated long-term capital losses | $ | (188,374,163) |
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.
Accumulated capital losses 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.
21
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations*: | Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $10.04 | 0.10 | (0.13) | (0.03) | (0.21) | $9.80 | (0.22)% | 1.27% | 1.27% | 1.05% | 1.05% | 29% | $305,994 | ||||||||||||||||||||||||||||
2022 | $13.67 | 0.09 | (3.61) | (3.52) | (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) | $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) | $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) | $11.25 | 10.99% | 1.25% | 1.25% | 1.59% | 1.59% | 39% | $606,668 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $10.30 | 0.13 | (0.13) | — | (0.23) | $10.07 | 0.02% | 1.07% | 1.07% | 1.25% | 1.25% | 29% | $507,013 | ||||||||||||||||||||||||||||
2022 | $14.02 | 0.11 | (3.70) | (3.59) | (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) | $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) | $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) | $11.56 | 11.20% | 1.05% | 1.05% | 1.79% | 1.79% | 39% | $1,325,801 |
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) | |||||||||||||||||||||||||||||
Y Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $10.32 | 0.13 | (0.11) | 0.02 | (0.24) | $10.10 | 0.23% | 0.92% | 0.92% | 1.40% | 1.40% | 29% | $33,189 | ||||||||||||||||||||||||||||
2022 | $14.05 | 0.13 | (3.71) | (3.58) | (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) | $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) | $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) | $11.60 | 11.43% | 0.90% | 0.90% | 1.94% | 1.94% | 39% | $14,638 | ||||||||||||||||||||||||||||
A Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $9.67 | 0.08 | (0.12) | (0.04) | (0.20) | $9.43 | (0.41)% | 1.52% | 1.52% | 0.80% | 0.80% | 29% | $38,620 | ||||||||||||||||||||||||||||
2022 | $13.17 | 0.06 | (3.48) | (3.42) | (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) | $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) | $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) | $10.84 | 10.71% | 1.50% | 1.50% | 1.34% | 1.34% | 39% | $78,704 | ||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $8.71 | 0.01 | (0.11) | (0.10) | (0.15) | $8.46 | (1.18)% | 2.27% | 2.27% | 0.05% | 0.05% | 29% | $8,932 | ||||||||||||||||||||||||||||
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) | $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 |
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 | $9.71 | 0.05 | (0.12) | (0.07) | (0.18) | $9.46 | (0.69)% | 1.77% | 1.77% | 0.55% | 0.55% | 29% | $5,309 | ||||||||||||||||||||||||||||
2022 | $13.22 | 0.03 | (3.49) | (3.46) | (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) | $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) | $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 | ||||||||||||||||||||||||||||
R5 Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $10.31 | 0.12 | (0.12) | — | (0.23) | $10.08 | 0.02% | 1.07% | 1.07% | 1.25% | 1.25% | 29% | $9,249 | ||||||||||||||||||||||||||||
2022 | $14.04 | 0.11 | (3.71) | (3.60) | (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) | $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) | $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) | $11.57 | 11.19% | 1.05% | 1.05% | 1.79% | 1.79% | 39% | $2,444 | ||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $10.31 | 0.14 | (0.13) | 0.01 | (0.24) | $10.08 | 0.13% | 0.92% | 0.92% | 1.40% | 1.40% | 29% | $460,847 | ||||||||||||||||||||||||||||
2022 | $14.03 | 0.13 | (3.70) | (3.57) | (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) | $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) | $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) | $11.58 | 11.45% | 0.90% | 0.90% | 1.94% | 1.94% | 39% | $405,776 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations*: | 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) | |||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $10.40 | 0.23 | (0.13) | 0.10 | (0.30) | $10.20 | 1.04% | 0.02% | 0.92% | 2.30% | 1.40% | 29% | $766,148 | ||||||||||||||||||||||||||||
2022(3) | $12.44 | 0.16 | (2.08) | (1.92) | (0.12) | $10.40 | (15.56)% | 0.01%(4) | 0.91%(4) | 2.42%(4) | 1.52%(4) | 52%(5) | $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)April 1, 2022 (commencement of sale) through November 30, 2022.
(4)Annualized.
(5)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(s) of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of a fund in relation to income earned and/or fluctuations in the fair value of a fund's investments.
See Notes to Financial Statements.
Report of Independent Registered Public Accounting Firm |
To the Shareholders of the Emerging Markets Fund and the Board of Directors of American Century World Mutual Funds, Inc.
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Emerging Markets Fund (the “Fund”), one of the funds constituting the American Century World Mutual Funds, Inc., as of November 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Emerging Markets Fund of the American Century World Mutual Funds, Inc. as of November 30, 2023, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Kansas City, Missouri
January 17, 2024
We have served as the auditor of one or more American Century investment companies since 1997.
26
Management |
The Board of Directors
The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire on December 31 of the year in which they reach their 75th birthday.
Jonathan S. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Brian Bulatao (1964) | Director | Since 2022 | Chief Administrative Officer, Activision Blizzard, Inc. (2021 to present); Under Secretary of State for Management, U.S. Department of State (2018 to 2021); Chief Operating Officer, Central Intelligence Agency (2017 to 2018) | 65 | None | ||||||||||||
Thomas W. Bunn (1953) | Director | Since 2017 | Retired | 65 | None | ||||||||||||
Chris H. Cheesman (1962) | Director | Since 2019 | Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018) | 65 | Alleghany Corporation (2021 to 2022) | ||||||||||||
Barry Fink (1955) | Director | Since 2012 (independent since 2016) | Retired | 65 | None | ||||||||||||
Rajesh K. Gupta (1960) | Director | Since 2019 | Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019) | 65 | None |
27
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Lynn Jenkins (1963) | Director | Since 2019 | Consultant, LJ Strategies (2019 to present); United States Representative, U.S. House of Representatives (2009 to 2018) | 65 | MGP Ingredients, Inc. (2019 to 2021) | ||||||||||||
Jan M. Lewis (1957) | Director and Board Chair | Since 2011 (Board Chair since 2022) | Retired | 65 | None | ||||||||||||
Gary C. Meltzer (1963) | Director | Since 2022 | Advisor, Pontoro (2021 to present); Executive Advisor, Consultant and Investor, Harris Ariel Advisory LLC (2020 to present); Managing Partner, PricewaterhouseCoopers LLP (1985 to 2020) | 65 | ExcelFin Acquisition Corp., Apollo Realty Income Solutions, Inc. | ||||||||||||
Stephen E. Yates(1) (1948) | Director | Since 2012 | Retired | 118 | None | ||||||||||||
Interested Director | |||||||||||||||||
Jonathan S. Thomas (1963) | Director | Since 2007 | President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Director, ACC and other ACC subsidiaries | 150 | None |
(1) Effective December 31, 2023, Steven E. Yates retired from the Board of Directors.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.
28
Officers
The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for each of the 16 investment companies in the American Century family of funds. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Offices with the Funds | Principal Occupation(s) During the Past Five Years | ||||||
Patrick Bannigan (1965) | President since 2019 | Executive Vice President and Director, ACC (2012 to present); Chief Financial Officer, Chief Accounting Officer and Treasurer, ACC (2015 to present). Also serves as President, ACS; Vice President, ACIM; Chief Financial Officer, Chief Accounting Officer and/or Director, ACIM, ACS and other ACC subsidiaries | ||||||
R. Wes Campbell (1974) | Chief Financial Officer and Treasurer since 2018; Vice President since 2023 | Vice President, ACS, (2020 to present); Investment Operations and Investment Accounting, ACS (2000 to present) | ||||||
Amy D. Shelton (1964) | Chief Compliance Officer and Vice President since 2014 | Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present). Also serves as Vice President, ACIS | ||||||
John Pak (1968) | General Counsel and Senior Vice President since 2021 | General Counsel and Senior Vice President, ACC (2021 to present). Also serves as General Counsel and Senior Vice President, ACIM, ACS and ACIS. Chief Legal Officer of Investment and Wealth Management, The Bank of New York Mellon (2014 to 2021) | ||||||
Cihan Kasikara (1974) | Vice President since 2023 | Senior Vice President, ACS (2022 to present); Treasurer, ACS (2023 to present); Vice President, ACS (2020 to 2022); Vice President, Franklin Templeton (2015 to 2020) | ||||||
Kathleen Gunja Nelson (1976) | Vice President since 2023 | Vice President, ACS (2017 to present) | ||||||
Ward D. Stauffer (1960) | Secretary since 2005 | Attorney, ACC (2003 to present) |
29
Approval of Management Agreement |
At a meeting held on June 28, 2023, the Fund’s Board of Directors (the "Board") unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under the Investment Company Act of 1940 (the “Investment Company Act”), contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s Directors, including a majority of the independent Directors.
Prior to its consideration of the renewal of the management agreement, the Directors requested and reviewed data and information compiled by the Advisor and certain independent data providers concerning the Fund. This review was in addition to the oversight and evaluation undertaken by the Board and its committees on a continual basis and the information received was supplemental to the information that the Board and its committees receive and consider over time.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor and its affiliates included, but was not limited to
•the nature, extent, and quality of investment management, shareholder services, distribution services, and other services provided to the Fund;
•the wide range of programs and services the Advisor and other service providers provide to the Fund and its shareholders on a routine and non-routine basis;
•the Fund’s investment performance compared to appropriate benchmarks and/or peer groups of other mutual funds with similar investment objectives and strategies;
•the cost of owning the Fund compared to the cost of owning similarly-managed funds;
•the Advisor’s compliance policies, procedures, and regulatory experience and those of certain other service providers;
•the Advisor’s strategic plans, generally, and with respect to areas of heightened regulatory interest in the mutual fund industry and certain recent geopolitical and other issues;
•the Advisor’s business continuity plans, vendor management practices, and information security practices;
•the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the Advisor’s financial results of operation;
•possible economies of scale associated with the Advisor’s management of the Fund;
•any collateral benefits derived by the Advisor from the management of the Fund;
•fees and expenses associated with any investment by the Fund in other funds;
•payments to intermediaries by the Fund and the Advisor and services provided by intermediaries in connection therewith; and
•services provided and charges to the Advisor's other investment management clients.
The Board held two meetings to consider the renewal. The independent Directors also met in private session multiple times to review and discuss the information provided in response to their request. The independent Directors held active discussions with the Advisor regarding the renewal of the management agreement, requesting supplemental information, and reviewing information provided by the Advisor in response thereto. The independent Directors had the benefit of the advice of their independent counsel throughout the process.
Factors Considered
The Directors considered all of the information provided by the Advisor, the independent data providers, and independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Directors did not identify any single factor as being all-important or controlling, and each Director may have attributed different levels of importance to different factors.
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In deciding to renew the management agreement, the Board based its decision on a number of factors, including without limitation the following:
Nature, Extent and Quality of Services — Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that the Advisor provides or arranges at its own expense a wide variety of services which include, without limitation, the following:
•constructing and designing the Fund
•portfolio research and security selection
•initial capitalization/funding
•securities trading
•Fund administration
•custody of Fund assets
•daily valuation of the Fund’s portfolio
•liquidity monitoring and management
•risk management, including information security
•shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications
•legal services (except the independent Directors’ counsel)
•regulatory and portfolio compliance
•financial reporting
•marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans)
The Board noted that many of these services have expanded over time in terms of both quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and principal investment strategies. Further, the Directors recognize that the Advisor has an obligation to monitor trading activities, and in particular to seek the best execution of fund trades, and to evaluate the use of and payment for research. In providing these services, the Advisor utilizes teams of investment professionals who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Fund Performance Review Committee, provides oversight of the investment performance process. It regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Directors also review investment performance information during the management agreement renewal process. If performance concerns are identified, the Board discusses with the Advisor the reasons for such results and any actions being taken to improve performance and may conduct special reviews until performance improves. The Fund’s performance was above its benchmark for the ten-year period and below its benchmark for the one-, three-, and five-year periods reviewed by the Board. In relation to industry peers, the Fund was above the median of its peer performance universe as identified by a third-party service provider for the ten-year period and below the median for its one-, three-, and five-year periods. The Board discussed the Fund's performance with the Advisor, including steps being taken to address underperformance, and was satisfied with the efforts being undertaken by the Advisor. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
Shareholder and Other Services. Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through its various committees, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services
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provided, staffing levels, shareholder satisfaction, technology support (including information security), new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund (pre- and post-distribution), and its financial results of operation. The Directors have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the terms of the current management agreement. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is sharing economies of scale, to the extent they exist, through its fee structure, and through reinvestment in its business, infrastructure, investment capabilities and initiatives to provide shareholders enhanced and expanded content and services.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage and other transaction fees and expenses relating to acquisition and disposition of portfolio securities, acquired fund fees and expenses, taxes, interest, extraordinary expenses, fund litigation expenses, fees and expenses of the Fund’s independent Directors (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Investment Company Act Rule 12b-1. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider comparing the Fund’s unified fee to the total expense ratios of its peers. The unified fee charged to shareholders of the Fund was below the median of the total expense ratios of the Fund’s peer expense universe. In addition, the Board reviewed the Fund’s position relative to the narrower set of its expense group peers. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this
32
information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
Payments to Intermediaries. The Directors also requested and received a description of payments made to intermediaries by the Fund and the Advisor and services provided in response thereto. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund. The Directors reviewed such information and received representations from the Advisor that all such payments by the Fund were made pursuant to the Fund's Rule 12b-1 Plan and that all such payments by the Advisor were made from the Advisor’s resources and reasonable profits.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the possible existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. They concluded that the Advisor’s primary business is managing funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. To the extent there are potential collateral benefits, the Board has been advised and has taken this into consideration in its review of the management contract with the Fund. The Board noted that additional assets from other clients may offer the Advisor some benefit from increased leverage with prospective clients, service providers, and counterparties. Additionally, the Advisor may receive proprietary research from broker-dealers that execute fund portfolio transactions, which the Board concluded is likely to benefit other clients of the Advisor, as well as Fund shareholders. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board concluded that appropriate allocation methodologies had been employed to assign resources and the cost of those resources to these other clients.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Directors. As a result of this process, the Board, including all of the independent Directors, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and received over time, determined that the terms of the management agreement are fair and reasonable and that the management fee charged to the Fund is reasonable in light of the services provided and that the management agreement between the Fund and the Advisor should be renewed for an additional one-year period.
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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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Other Tax Information
The following information is provided pursuant to provisions of the Internal Revenue Code.
The fund hereby designates up to the maximum amount allowable as qualified dividend income for
the fiscal year ended November 30, 2023.
For the fiscal year ended November 30, 2023, the fund intends to pass through to shareholders
foreign source income of $60,656,964 and foreign taxes paid of $5,478,906, or up to the maximum
amount allowable, as a foreign tax credit. Foreign source income and foreign tax expense per
outstanding share on November 30, 2023 are $0.2857 and $0.0258, respectively.
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Notes |
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Contact Us | americancentury.com | |||||||
Automated Information Line | 1-800-345-8765 | |||||||
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |||||||
Investors Using Advisors | 1-800-378-9878 | |||||||
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |||||||
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |||||||
Telecommunications Relay Service for the Deaf | 711 | |||||||
American Century World Mutual Funds, Inc. | ||||||||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||||||||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||||||||
©2024 American Century Proprietary Holdings, Inc. All rights reserved. CL-ANN-91030 2401 |
![image5.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image5.jpg)
Annual Report | |||||
November 30, 2023 | |||||
Emerging Markets Small Cap Fund | |||||
Investor Class (AECVX) | |||||
I Class (AECSX) | |||||
A Class (AECLX) | |||||
C Class (AECHX) | |||||
R Class (AECMX) | |||||
R6 Class (AECTX) |
The Securities and Exchange Commission (SEC) adopted new rules that will require annual and semiannual reports to transition to a new format known as a Tailored Shareholder Report beginning in July 2024. The amendments will require the transmission of a concise report highlighting key fund information to investors. The detailed financial statements will remain available on our website, will be delivered to investors free of charge upon request, and will continue to be filed with the SEC.
Table of Contents |
President’s Letter | |||||
Performance | |||||
Portfolio Commentary | |||||
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 | |||||
Report of Independent Registered Public Accounting Firm | |||||
Management | |||||
Approval of Management Agreement | |||||
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 |
![jthomasrev0514a14.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/jthomasrev0514a14.jpg)
Dear Investor:
Thank you for reviewing this annual report for the period ending November 30, 2023. Annual reports help convey important information about fund returns, including market factors that affect performance. For additional investment insights, please visit americancentury.com.
Stocks Rallied Amid Persistent Volatility
Despite ongoing challenges from a variety of sources, global stocks broadly delivered solid gains for the 12-month period. Amid persistent inflation, central banks continued to raise interest rates through much of the fiscal year. Additionally, banking industry turmoil, economic uncertainty and geopolitical unrest added to the volatile backdrop.
Overall, investor expectations for central banks to conclude their rate-hike campaigns fueled optimism. In the first half of the period, inflation’s steady slowdown, a series of bank failures and mounting recession worries prompted investors to regularly recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to lift interest rates through the third quarter of 2023.
By period-end, most central banks had paused their tightening campaigns alongside slower inflation rates and weakening growth data. While many observers believed the pauses indicated an end to the long-standing rate-hike programs, still-above-target inflation prompted policymakers to leave their options open. Nevertheless, financial markets rallied late in the period, convinced central banks would pivot to rate cuts in 2024.
In addition, corporate earnings generally remained better than expected, which also aided stock returns. Overall, most broad global stock indices delivered double-digit gains for the period. Growth stocks were particularly strong and significantly outperformed their value-stock peers. However, among small-cap stocks, the value style outperformed. Emerging markets stocks advanced but notably lagged their developed markets counterparts.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of persistent inflation, tighter financial conditions and recession risk. In addition, the Israel-Hamas war complicates the global backdrop and represents another key consideration for our investment teams.
Our firm has a long history of helping clients weather unpredictable and volatile markets, and we’re determined to meet today’s challenges. Thank you for your trust and confidence in American Century Investments.
With appreciation and respect,
![image48a16a.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image48a16a.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Performance |
Total Returns as of November 30, 2023 | |||||||||||||||||
Average Annual Returns | |||||||||||||||||
Ticker Symbol | 1 year | 5 years | Since Inception | Inception Date | |||||||||||||
Investor Class | AECVX | 13.15% | 6.80% | 6.80% | 4/7/16 | ||||||||||||
MSCI Emerging Markets Small Cap Index | — | 17.45% | 8.62% | 7.27% | — | ||||||||||||
I Class | AECSX | 13.38% | 7.00% | 7.01% | 4/7/16 | ||||||||||||
A Class | AECLX | 4/7/16 | |||||||||||||||
No sales charge | 12.90% | 6.54% | 6.53% | ||||||||||||||
With sales charge | 6.41% | 5.28% | 5.71% | ||||||||||||||
C Class | AECHX | 12.09% | 5.74% | 5.74% | 4/7/16 | ||||||||||||
R Class | AECMX | 12.59% | 6.25% | 6.26% | 4/7/16 | ||||||||||||
R6 Class | AECTX | 13.58% | 7.16% | 7.17% | 4/7/16 |
Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
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Growth of $10,000 Over Life of Class | ||
$10,000 investment made April 7, 2016 | ||
Performance for other share classes will vary due to differences in fee structure. |
![chart-32133e6c16ec449cb5ca.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/chart-32133e6c16ec449cb5ca.jpg)
Value on November 30, 2023 | |||||
Investor Class — $16,542 | |||||
MSCI Emerging Markets Small Cap Index — $17,114 | |||||
Total Annual Fund Operating Expenses | |||||||||||||||||
Investor Class | I Class | A Class | C Class | R Class | R6 Class | ||||||||||||
1.42% | 1.22% | 1.67% | 2.42% | 1.92% | 1.07% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
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Portfolio Commentary |
Portfolio Managers: Patricia Ribeiro and Sherwin Soo
Performance Summary
Emerging Markets Small Cap returned 13.15%* for the 12 months ended November 30, 2023. The fund’s benchmark, the MSCI Emerging Markets Small Cap Index, returned 17.45% for the same period. The fund’s return reflects operating expenses, while the index’s return does not.
Positioning in the consumer discretionary and financials sectors detracted from performance relative to the benchmark. Positioning in the real estate and consumer staples sectors benefited relative performance. Style factors help explain our underperformance during the period. The recent market environment has not been supportive for our investment approach as a growth manager, given the outperformance of value stocks relative to growth stocks, driven by accelerated inflation rates and rising interest rates.
Consumer Discretionary and Financials Hampered Performance
Stock selection in the textiles, apparel and luxury goods industry helped drive relative weakness within consumer discretionary. Shares of bakery and coffee chain Gourmet Master declined sharply despite strong growth in the U.S., mainly due to disappointing sales in China as the pace of recovery in the market lagged expectations.
In financials, Taiwan-based leasing company Chailease Holding was a substantial detractor as China’s macroeconomic headwinds helped push the company’s delinquency ratio higher. Chailease’s earnings were hampered by bigger-than-expected increases in funding costs in Taiwan and Southeast Asia, plus rising credit costs in Taiwan and China.
Lack of exposure to battery materials maker Ecopro BM also detracted. Shares advanced sharply amid strong sales growth, increasing demand from electric vehicle manufacturers and friendly regulatory shifts.
Real Estate and Consumer Staples Benefited Performance
Stock selection and an overweight to real estate contributed to relative returns. Shares of India-based developer Prestige Estates Projects advanced sharply as sales and collections surged amid a series of successful project launches. The company has strong momentum in presale and robust growth plans, focused on residential and commercial markets.
In consumer staples, stock selection drove relative contribution, led by an overweight to household products maker Jyothy Labs. Shares benefited from robust growth across multiple categories and improving cash flows, driven by initiatives such as enhanced distribution and consistent brand investments.
Elsewhere, chip design firm Alchip Technologies was a key relative contributor, bolstered by repeated analysts’ upgrades reflecting the company’s strong growth potential in semiconductors for artificial intelligence applications and revenue upside from automotive high-performance computing.
*All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the fund’s benchmark, other share classes may not. See page 3 for returns for all share classes.
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Fund Characteristics |
NOVEMBER 30, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 99.8% | ||||
Exchange-Traded Funds | 1.1% | ||||
Short-Term Investments | 0.8% | ||||
Other Assets and Liabilities | (1.7)% | ||||
Top Five Countries* | % of net assets | ||||
India | 28.2% | ||||
Taiwan | 18.0% | ||||
Brazil | 9.1% | ||||
South Korea | 7.8% | ||||
Mexico | 6.6% |
*Exposure indicated excludes Exchange-Traded Funds. The Schedule of Investments provides additional information on the fund's portfolio holdings.
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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 June 1, 2023 to November 30, 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 6/1/23 | Ending Account Value 11/30/23 | Expenses Paid During Period(1) 6/1/23 - 11/30/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,130.30 | $7.42 | 1.39% | ||||||||||
I Class | $1,000 | $1,131.30 | $6.36 | 1.19% | ||||||||||
A Class | $1,000 | $1,129.70 | $8.76 | 1.64% | ||||||||||
C Class | $1,000 | $1,124.70 | $12.73 | 2.39% | ||||||||||
R Class | $1,000 | $1,127.70 | $10.08 | 1.89% | ||||||||||
R6 Class | $1,000 | $1,132.60 | $5.56 | 1.04% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,018.10 | $7.03 | 1.39% | ||||||||||
I Class | $1,000 | $1,019.10 | $6.02 | 1.19% | ||||||||||
A Class | $1,000 | $1,016.85 | $8.29 | 1.64% | ||||||||||
C Class | $1,000 | $1,013.09 | $12.06 | 2.39% | ||||||||||
R Class | $1,000 | $1,015.59 | $9.55 | 1.89% | ||||||||||
R6 Class | $1,000 | $1,019.85 | $5.27 | 1.04% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, 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.
8
Schedule of Investments |
NOVEMBER 30, 2023
Shares | Value | |||||||
COMMON STOCKS — 99.8% | ||||||||
Brazil — 9.1% | ||||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes | 16,800 | $ | 74,067 | |||||
Embraer SA, ADR(1)(2) | 6,245 | 109,225 | ||||||
Fleury SA | 36,600 | 128,716 | ||||||
MRV Engenharia e Participacoes SA(1) | 43,600 | 85,304 | ||||||
PRIO SA(1) | 40,900 | 383,319 | ||||||
Santos Brasil Participacoes SA | 63,100 | 108,456 | ||||||
Sendas Distribuidora SA | 34,100 | 89,371 | ||||||
SLC Agricola SA | 8,520 | 65,172 | ||||||
TOTVS SA | 14,900 | 100,291 | ||||||
YDUQS Participacoes SA | 40,500 | 165,964 | ||||||
1,309,885 | ||||||||
Canada — 0.3% | ||||||||
ERO Copper Corp.(1) | 2,880 | 35,487 | ||||||
China — 4.8% | ||||||||
BOC Aviation Ltd. | 7,300 | 52,523 | ||||||
China East Education Holdings Ltd.(2) | 122,500 | 40,475 | ||||||
China Education Group Holdings Ltd. | 57,592 | 34,979 | ||||||
China Overseas Property Holdings Ltd. | 130,000 | 105,951 | ||||||
Far East Horizon Ltd.(2) | 93,000 | 68,093 | ||||||
Jinxin Fertility Group Ltd.(1)(2) | 79,500 | 38,124 | ||||||
Shenzhen Envicool Technology Co. Ltd., Class A | 44,300 | 169,952 | ||||||
Tongcheng Travel Holdings Ltd.(1) | 51,200 | 94,125 | ||||||
TravelSky Technology Ltd., H Shares | 48,000 | 80,865 | ||||||
685,087 | ||||||||
Greece — 1.4% | ||||||||
OPAP SA | 8,175 | 130,729 | ||||||
Piraeus Financial Holdings SA(1) | 20,908 | 74,499 | ||||||
205,228 | ||||||||
Hong Kong — 1.1% | ||||||||
MGM China Holdings Ltd.(1) | 148,400 | 163,305 | ||||||
India — 28.2% | ||||||||
Alembic Pharmaceuticals Ltd. | 12,178 | 108,944 | ||||||
AU Small Finance Bank Ltd. | 22,743 | 202,633 | ||||||
Craftsman Automation Ltd. | 1,130 | 68,528 | ||||||
Crompton Greaves Consumer Electricals Ltd. | 13,987 | 47,832 | ||||||
Fortis Healthcare Ltd. | 22,126 | 102,433 | ||||||
Indian Hotels Co. Ltd. | 67,833 | 343,352 | ||||||
Jyothy Labs Ltd. | 96,257 | 501,976 | ||||||
MakeMyTrip Ltd.(1) | 5,702 | 240,796 | ||||||
PB Fintech Ltd.(1) | 25,893 | 259,053 | ||||||
Persistent Systems Ltd. | 2,499 | 192,039 | ||||||
Phoenix Mills Ltd. | 12,856 | 365,869 | ||||||
Prestige Estates Projects Ltd. | 42,277 | 509,238 | ||||||
Shriram Finance Ltd. | 7,692 | 185,305 | ||||||
Supreme Industries Ltd. | 3,089 | 164,351 | ||||||
Torrent Pharmaceuticals Ltd. | 5,695 | 144,978 |
9
Shares | Value | |||||||
Varun Beverages Ltd. | 30,504 | $ | 404,973 | |||||
VIP Industries Ltd. | 8,696 | 63,329 | ||||||
WNS Holdings Ltd., ADR(1) | 2,668 | 158,693 | ||||||
4,064,322 | ||||||||
Indonesia — 2.4% | ||||||||
Ciputra Development Tbk PT | 1,665,800 | 121,314 | ||||||
Mitra Adiperkasa Tbk PT | 1,949,100 | 219,339 | ||||||
340,653 | ||||||||
Malaysia — 2.2% | ||||||||
Carlsberg Brewery Malaysia Bhd | 18,800 | 77,225 | ||||||
Gamuda Bhd | 230,700 | 236,244 | ||||||
313,469 | ||||||||
Mexico — 6.6% | ||||||||
Corp. Inmobiliaria Vesta SAB de CV(2) | 76,986 | 290,196 | ||||||
GCC SAB de CV | 18,502 | 181,606 | ||||||
Gentera SAB de CV | 213,229 | 246,027 | ||||||
Qualitas Controladora SAB de CV | 25,576 | 233,988 | ||||||
951,817 | ||||||||
Philippines — 2.0% | ||||||||
Bloomberry Resorts Corp.(1) | 1,292,400 | 224,629 | ||||||
International Container Terminal Services, Inc. | 17,560 | 68,341 | ||||||
292,970 | ||||||||
Russia(3)† | ||||||||
HeadHunter Group PLC, ADR(1) | 776 | — | ||||||
Saudi Arabia — 6.3% | ||||||||
Al-Dawaa Medical Services Co. | 2,621 | 71,476 | ||||||
Arabian Contracting Services Co. | 4,180 | 206,437 | ||||||
Catrion Catering Holding Co. | 6,233 | 188,431 | ||||||
Leejam Sports Co. JSC | 3,156 | 139,035 | ||||||
National Medical Care Co. | 2,123 | 80,402 | ||||||
Riyadh Cables Group Co. | 10,599 | 222,398 | ||||||
908,179 | ||||||||
South Africa — 1.3% | ||||||||
Capitec Bank Holdings Ltd. | 702 | 73,136 | ||||||
Clicks Group Ltd. | 7,506 | 117,622 | ||||||
190,758 | ||||||||
South Korea — 7.8% | ||||||||
BGF retail Co. Ltd. | 637 | 66,534 | ||||||
Cosmax, Inc.(1) | 1,500 | 128,410 | ||||||
Dentium Co. Ltd. | 825 | 80,383 | ||||||
Fila Holdings Corp. | 3,341 | 98,396 | ||||||
Han Kuk Carbon Co. Ltd. | 8,482 | 81,460 | ||||||
Hyundai Autoever Corp. | 880 | 125,841 | ||||||
Hyundai Mipo Dockyard Co. Ltd.(1) | 1,216 | 76,291 | ||||||
Jeisys Medical, Inc.(1) | 17,909 | 149,259 | ||||||
LG Innotek Co. Ltd. | 428 | 78,757 | ||||||
Orion Corp./Republic of Korea | 1,609 | 145,490 | ||||||
Samsung Engineering Co. Ltd.(1) | 4,348 | 84,776 | ||||||
1,115,597 | ||||||||
Taiwan — 18.0% | ||||||||
Accton Technology Corp. | 11,000 | 187,153 | ||||||
Airtac International Group | 2,000 | 69,465 |
10
Shares | Value | |||||||
Alchip Technologies Ltd. | 4,000 | $ | 398,979 | |||||
Asia Vital Components Co. Ltd. | 15,000 | 147,217 | ||||||
ASMedia Technology, Inc. | 7,000 | 322,731 | ||||||
Bizlink Holding, Inc. | 7,067 | 59,645 | ||||||
Chailease Holding Co. Ltd. | 26,595 | 158,021 | ||||||
Chroma ATE, Inc. | 14,000 | 95,982 | ||||||
Eclat Textile Co. Ltd. | 4,000 | 76,057 | ||||||
Global Unichip Corp. | 3,000 | 157,971 | ||||||
Gourmet Master Co. Ltd. | 21,000 | 67,267 | ||||||
Great Tree Pharmacy Co. Ltd. | 8,193 | 91,634 | ||||||
Himax Technologies, Inc., ADR | 8,059 | 46,017 | ||||||
King Yuan Electronics Co. Ltd. | 118,000 | 313,048 | ||||||
Pegavision Corp. | 6,000 | 77,329 | ||||||
Sercomm Corp. | 21,000 | 83,551 | ||||||
Universal Vision Biotechnology Co. Ltd. | 7,865 | 72,850 | ||||||
Winbond Electronics Corp. | 190,467 | 172,742 | ||||||
2,597,659 | ||||||||
Thailand — 5.9% | ||||||||
Bumrungrad Hospital PCL | 34,900 | 221,661 | ||||||
Erawan Group PCL, NVDR(1) | 1,556,100 | 232,371 | ||||||
Minor International PCL | 92,700 | 71,883 | ||||||
Plan B Media PCL, F Shares | 230,500 | 54,713 | ||||||
Thai Oil PCL | 49,000 | 71,616 | ||||||
WHA Corp. PCL | 1,415,400 | 201,506 | ||||||
853,750 | ||||||||
Turkey — 1.0% | ||||||||
Sok Marketler Ticaret AS | 70,538 | 143,193 | ||||||
United Arab Emirates — 1.4% | ||||||||
Emirates Central Cooling Systems Corp. | 444,211 | 199,671 | ||||||
TOTAL COMMON STOCKS (Cost $11,441,367) | 14,371,030 | |||||||
EXCHANGE-TRADED FUNDS — 1.1% | ||||||||
Fubon Taiwan Small-Mid Cap Alpha Momentum 50 ETF (Cost $138,977) | 93,000 | 166,124 | ||||||
SHORT-TERM INVESTMENTS — 0.8% | ||||||||
Money Market Funds — 0.8% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio(4) (Cost $112,410) | 112,410 | 112,410 | ||||||
TOTAL INVESTMENT SECURITIES — 101.7% (Cost $11,692,754) | 14,649,564 | |||||||
OTHER ASSETS AND LIABILITIES — (1.7)% | (249,854) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 14,399,710 |
11
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Consumer Discretionary | 18.7% | ||||
Information Technology | 16.8% | ||||
Consumer Staples | 13.2% | ||||
Industrials | 11.6% | ||||
Real Estate | 11.1% | ||||
Financials | 10.4% | ||||
Health Care | 8.4% | ||||
Materials | 3.2% | ||||
Energy | 3.2% | ||||
Communication Services | 1.8% | ||||
Utilities | 1.4% | ||||
Exchange-Traded Funds | 1.1% | ||||
Short-Term Investments | 0.8% | ||||
Other Assets and Liabilities | (1.7)% |
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 $538,734. 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 $550,407, which includes securities collateral of $437,997.
See Notes to Financial Statements.
12
Statement of Assets and Liabilities |
NOVEMBER 30, 2023 | |||||
Assets | |||||
Investment securities, at value (cost of $11,580,344) — including $538,734 of securities on loan | $ | 14,537,154 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $112,410) | 112,410 | ||||
Total investment securities, at value (cost of $11,692,754) | 14,649,564 | ||||
Foreign currency holdings, at value (cost of $118,928) | 118,928 | ||||
Receivable for investments sold | 355,893 | ||||
Receivable for capital shares sold | 22,169 | ||||
Dividends and interest receivable | 4,758 | ||||
Securities lending receivable | 225 | ||||
Other assets | 516 | ||||
15,152,053 | |||||
Liabilities | |||||
Disbursements in excess of demand deposit cash | 23,443 | ||||
Payable for collateral received for securities on loan | 112,410 | ||||
Payable for investments purchased | 419,491 | ||||
Payable for capital shares redeemed | 3,873 | ||||
Accrued management fees | 14,005 | ||||
Distribution and service fees payable | 322 | ||||
Accrued foreign taxes | 178,799 | ||||
752,343 | |||||
Net Assets | $ | 14,399,710 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 12,554,929 | |||
Distributable earnings (loss) | 1,844,781 | ||||
$ | 14,399,710 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $2,484,127 | 183,616 | $13.53 | ||||||||
I Class, $0.01 Par Value | $8,615,423 | 632,929 | $13.61 | ||||||||
A Class, $0.01 Par Value | $450,678 | 33,610 | $13.41 | ||||||||
C Class, $0.01 Par Value | $13,669 | 1,060 | $12.90 | ||||||||
R Class, $0.01 Par Value | $571,264 | 43,100 | $13.25 | ||||||||
R6 Class, $0.01 Par Value | $2,264,549 | 165,631 | $13.67 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except A Class, for which the maximum offering price per share was $14.23 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of A Class and C Class.
See Notes to Financial Statements.
13
Statement of Operations |
YEAR ENDED NOVEMBER 30, 2023 | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $24,371) | $ | 248,859 | |||
Interest | 15,162 | ||||
Securities lending, net | 5,044 | ||||
269,065 | |||||
Expenses: | |||||
Management fees | 147,023 | ||||
Distribution and service fees: | |||||
A Class | 693 | ||||
C Class | 127 | ||||
R Class | 2,821 | ||||
Directors' fees and expenses | 409 | ||||
Other expenses | 798 | ||||
151,871 | |||||
Net investment income (loss) | 117,194 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions (net of foreign tax expenses paid (refunded) of $3,232) | (287,616) | ||||
Foreign currency translation transactions | (12,504) | ||||
(300,120) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments (includes (increase) decrease in accrued foreign taxes of $(122,222)) | 1,750,841 | ||||
Translation of assets and liabilities in foreign currencies | (651) | ||||
1,750,190 | |||||
Net realized and unrealized gain (loss) | 1,450,070 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,567,264 |
See Notes to Financial Statements.
14
Statement of Changes in Net Assets |
YEARS ENDED NOVEMBER 30, 2023 AND NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | November 30, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 117,194 | $ | 129,413 | ||||
Net realized gain (loss) | (300,120) | (616,181) | ||||||
Change in net unrealized appreciation (depreciation) | 1,750,190 | (1,649,070) | ||||||
Net increase (decrease) in net assets resulting from operations | 1,567,264 | (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) | 2,422,828 | 3,141,480 | ||||||
Net increase (decrease) in net assets | 3,763,041 | 242,493 | ||||||
Net Assets | ||||||||
Beginning of period | 10,636,669 | 10,394,176 | ||||||
End of period | $ | 14,399,710 | $ | 10,636,669 |
See Notes to Financial Statements.
15
Notes to Financial Statements |
NOVEMBER 30, 2023
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.
16
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.
17
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 November 30, 2023.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 112,410 | — | — | — | $ | 112,410 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 112,410 |
(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% |
18
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 November 30, 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.
Other Expenses — A fund’s other expenses may include interest charges, clearing exchange fees, proxy solicitation expenses, fees associated with the recovery of foreign tax reclaims and other miscellaneous expenses.
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 November 30, 2023 were $8,179,556 and $5,693,379, respectively.
19
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Year ended November 30, 2023 | Year ended November 30, 2022 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 35,000,000 | 40,000,000 | ||||||||||||
Sold | 24,632 | $ | 307,215 | 23,898 | $ | 328,218 | ||||||||
Issued in reinvestment of distributions | 4,214 | 49,679 | 15,784 | 239,280 | ||||||||||
Redeemed | (44,108) | (556,922) | (50,201) | (689,117) | ||||||||||
(15,262) | (200,028) | (10,519) | (121,619) | |||||||||||
I Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||
Sold | 223,069 | 2,890,187 | 208,766 | 2,797,130 | ||||||||||
Issued in reinvestment of distributions | 11,621 | 137,593 | 29,930 | 455,532 | ||||||||||
Redeemed | (115,512) | (1,448,980) | (92,476) | (1,234,590) | ||||||||||
119,178 | 1,578,800 | 146,220 | 2,018,072 | |||||||||||
A Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 15,288 | 190,423 | 46 | 547 | ||||||||||
Issued in reinvestment of distributions | 376 | 4,405 | 1,488 | 22,401 | ||||||||||
Redeemed | (2,185) | (29,298) | (11) | (140) | ||||||||||
13,479 | 165,530 | 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 | 22,964 | 283,693 | 20,048 | 254,182 | ||||||||||
Issued in reinvestment of distributions | 687 | 7,964 | 2,633 | 39,304 | ||||||||||
Redeemed | (24,307) | (294,988) | (11,001) | (138,933) | ||||||||||
(656) | (3,331) | 11,680 | 154,553 | |||||||||||
R6 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 116,870 | 1,406,437 | 92,243 | 1,091,341 | ||||||||||
Issued in reinvestment of distributions | 2,227 | 26,437 | 91 | 1,395 | ||||||||||
Redeemed | (44,300) | (551,152) | (2,594) | (30,431) | ||||||||||
74,797 | 881,722 | 89,740 | 1,062,305 | |||||||||||
Net increase (decrease) | 191,548 | $ | 2,422,828 | 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).
20
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 | $ | 554,731 | $ | 13,816,299 | — | ||||||
Exchange-Traded Funds | — | 166,124 | — | ||||||||
Short-Term Investments | 112,410 | — | — | ||||||||
$ | 667,141 | $ | 13,982,423 | — |
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 tax character of distributions paid during the years ended November 30, 2023 and November 30, 2022 were as follows:
2023 | 2022 | |||||||
Distributions Paid From | ||||||||
Ordinary income | $ | 227,051 | $ | 20,428 | ||||
Long-term capital gains | — | $ | 742,721 |
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.
21
As of period end, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments | $ | 11,872,099 | |||
Gross tax appreciation of investments | $ | 3,392,479 | |||
Gross tax depreciation of investments | (615,014) | ||||
Net tax appreciation (depreciation) of investments | 2,777,465 | ||||
Net tax appreciation (depreciation) on translation of assets and liabilities in foreign currencies | (179,462) | ||||
Net tax appreciation (depreciation) | $ | 2,598,003 | |||
Undistributed ordinary income | $ | 155,697 | |||
Accumulated short-term capital losses | $ | (908,919) |
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.
Accumulated capital losses 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.
22
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 | $12.21 | 0.10 | 1.47 | 1.57 | (0.25) | — | (0.25) | $13.53 | 13.15% | 1.40% | 0.83% | 48% | $2,484 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $12.28 | 0.13 | 1.47 | 1.60 | (0.27) | — | (0.27) | $13.61 | 13.38% | 1.20% | 1.03% | 48% | $8,615 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
A Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $12.10 | 0.07 | 1.46 | 1.53 | (0.22) | — | (0.22) | $13.41 | 12.90% | 1.65% | 0.58% | 48% | $451 | ||||||||||||||||||||||||||||
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%(3) | 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 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations*: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $11.64 | (0.02) | 1.41 | 1.39 | (0.13) | — | (0.13) | $12.90 | 12.09% | 2.40% | (0.17)% | 48% | $14 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $11.96 | 0.04 | 1.44 | 1.48 | (0.19) | — | (0.19) | $13.25 | 12.59% | 1.90% | 0.33% | 48% | $571 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $12.33 | 0.15 | 1.48 | 1.63 | (0.29) | — | (0.29) | $13.67 | 13.58% | 1.05% | 1.18% | 48% | $2,265 | ||||||||||||||||||||||||||||
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 |
Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)Ratio was less than 0.005%.
See Notes to Financial Statements.
Report of Independent Registered Public Accounting Firm |
To the Shareholders of the Emerging Markets Small Cap Fund and the Board of Directors of American Century World Mutual Funds, Inc.
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Emerging Markets Small Cap Fund (the “Fund”), one of the funds constituting the American Century World Mutual Funds, Inc., as of November 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Emerging Markets Small Cap Fund of the American Century World Mutual Funds, Inc. as of November 30, 2023, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Kansas City, Missouri
January 17, 2024
We have served as the auditor of one or more American Century investment companies since 1997.
26
Management |
The Board of Directors
The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire on December 31 of the year in which they reach their 75th birthday.
Jonathan S. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Brian Bulatao (1964) | Director | Since 2022 | Chief Administrative Officer, Activision Blizzard, Inc. (2021 to present); Under Secretary of State for Management, U.S. Department of State (2018 to 2021); Chief Operating Officer, Central Intelligence Agency (2017 to 2018) | 65 | None | ||||||||||||
Thomas W. Bunn (1953) | Director | Since 2017 | Retired | 65 | None | ||||||||||||
Chris H. Cheesman (1962) | Director | Since 2019 | Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018) | 65 | Alleghany Corporation (2021 to 2022) | ||||||||||||
Barry Fink (1955) | Director | Since 2012 (independent since 2016) | Retired | 65 | None | ||||||||||||
Rajesh K. Gupta (1960) | Director | Since 2019 | Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019) | 65 | None |
27
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Lynn Jenkins (1963) | Director | Since 2019 | Consultant, LJ Strategies (2019 to present); United States Representative, U.S. House of Representatives (2009 to 2018) | 65 | MGP Ingredients, Inc. (2019 to 2021) | ||||||||||||
Jan M. Lewis (1957) | Director and Board Chair | Since 2011 (Board Chair since 2022) | Retired | 65 | None | ||||||||||||
Gary C. Meltzer (1963) | Director | Since 2022 | Advisor, Pontoro (2021 to present); Executive Advisor, Consultant and Investor, Harris Ariel Advisory LLC (2020 to present); Managing Partner, PricewaterhouseCoopers LLP (1985 to 2020) | 65 | ExcelFin Acquisition Corp., Apollo Realty Income Solutions, Inc. | ||||||||||||
Stephen E. Yates(1) (1948) | Director | Since 2012 | Retired | 118 | None | ||||||||||||
Interested Director | |||||||||||||||||
Jonathan S. Thomas (1963) | Director | Since 2007 | President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Director, ACC and other ACC subsidiaries | 150 | None |
(1) Effective December 31, 2023, Steven E. Yates retired from the Board of Directors.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.
28
Officers
The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for each of the 16 investment companies in the American Century family of funds. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Offices with the Funds | Principal Occupation(s) During the Past Five Years | ||||||
Patrick Bannigan (1965) | President since 2019 | Executive Vice President and Director, ACC (2012 to present); Chief Financial Officer, Chief Accounting Officer and Treasurer, ACC (2015 to present). Also serves as President, ACS; Vice President, ACIM; Chief Financial Officer, Chief Accounting Officer and/or Director, ACIM, ACS and other ACC subsidiaries | ||||||
R. Wes Campbell (1974) | Chief Financial Officer and Treasurer since 2018; Vice President since 2023 | Vice President, ACS, (2020 to present); Investment Operations and Investment Accounting, ACS (2000 to present) | ||||||
Amy D. Shelton (1964) | Chief Compliance Officer and Vice President since 2014 | Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present). Also serves as Vice President, ACIS | ||||||
John Pak (1968) | General Counsel and Senior Vice President since 2021 | General Counsel and Senior Vice President, ACC (2021 to present). Also serves as General Counsel and Senior Vice President, ACIM, ACS and ACIS. Chief Legal Officer of Investment and Wealth Management, The Bank of New York Mellon (2014 to 2021) | ||||||
Cihan Kasikara (1974) | Vice President since 2023 | Senior Vice President, ACS (2022 to present); Treasurer, ACS (2023 to present); Vice President, ACS (2020 to 2022); Vice President, Franklin Templeton (2015 to 2020) | ||||||
Kathleen Gunja Nelson (1976) | Vice President since 2023 | Vice President, ACS (2017 to present) | ||||||
Ward D. Stauffer (1960) | Secretary since 2005 | Attorney, ACC (2003 to present) |
29
Approval of Management Agreement |
At a meeting held on June 28, 2023, the Fund’s Board of Directors (the "Board") unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under the Investment Company Act of 1940 (the “Investment Company Act”), contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s Directors, including a majority of the independent Directors.
Prior to its consideration of the renewal of the management agreement, the Directors requested and reviewed data and information compiled by the Advisor and certain independent data providers concerning the Fund. This review was in addition to the oversight and evaluation undertaken by the Board and its committees on a continual basis and the information received was supplemental to the information that the Board and its committees receive and consider over time.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor and its affiliates included, but was not limited to
•the nature, extent, and quality of investment management, shareholder services, distribution services, and other services provided to the Fund;
•the wide range of programs and services the Advisor and other service providers provide to the Fund and its shareholders on a routine and non-routine basis;
•the Fund’s investment performance compared to appropriate benchmarks and/or peer groups of other mutual funds with similar investment objectives and strategies;
•the cost of owning the Fund compared to the cost of owning similarly-managed funds;
•the Advisor’s compliance policies, procedures, and regulatory experience and those of certain other service providers;
•the Advisor’s strategic plans, generally, and with respect to areas of heightened regulatory interest in the mutual fund industry and certain recent geopolitical and other issues;
•the Advisor’s business continuity plans, vendor management practices, and information security practices;
•the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the Advisor’s financial results of operation;
•possible economies of scale associated with the Advisor’s management of the Fund;
•any collateral benefits derived by the Advisor from the management of the Fund;
•fees and expenses associated with any investment by the Fund in other funds;
•payments to intermediaries by the Fund and the Advisor and services provided by intermediaries in connection therewith; and
•services provided and charges to the Advisor's other investment management clients.
The Board held two meetings to consider the renewal. The independent Directors also met in private session multiple times to review and discuss the information provided in response to their request. The independent Directors held active discussions with the Advisor regarding the renewal of the management agreement, requesting supplemental information, and reviewing information provided by the Advisor in response thereto. The independent Directors had the benefit of the advice of their independent counsel throughout the process.
Factors Considered
The Directors considered all of the information provided by the Advisor, the independent data providers, and independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Directors did not identify any single factor as being all-important or controlling, and each Director may have attributed different levels of importance to different factors.
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In deciding to renew the management agreement, the Board based its decision on a number of factors, including without limitation the following:
Nature, Extent and Quality of Services — Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that the Advisor provides or arranges at its own expense a wide variety of services which include, without limitation, the following:
•constructing and designing the Fund
•portfolio research and security selection
•initial capitalization/funding
•securities trading
•Fund administration
•custody of Fund assets
•daily valuation of the Fund’s portfolio
•liquidity monitoring and management
•risk management, including information security
•shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications
•legal services (except the independent Directors’ counsel)
•regulatory and portfolio compliance
•financial reporting
•marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans)
The Board noted that many of these services have expanded over time in terms of both quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and principal investment strategies. Further, the Directors recognize that the Advisor has an obligation to monitor trading activities, and in particular to seek the best execution of fund trades, and to evaluate the use of and payment for research. In providing these services, the Advisor utilizes teams of investment professionals who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Fund Performance Review Committee, provides oversight of the investment performance process. It regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Directors also review investment performance information during the management agreement renewal process. If performance concerns are identified, the Board discusses with the Advisor the reasons for such results and any actions being taken to improve performance and may conduct special reviews until performance improves. The Fund’s performance was above its benchmark for the five-year period and below its benchmark for the one- and three-year periods reviewed by the Board. In relation to industry peers, the Fund was above the median of its peer performance universe as identified by a third-party service provider for the three- and five-year periods and below the median for the one-year period. The Board discussed the Fund's performance with the Advisor, including steps being taken to address underperformance, and was satisfied with the efforts being undertaken by the Advisor. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
Shareholder and Other Services. Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through its various committees, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services
31
provided, staffing levels, shareholder satisfaction, technology support (including information security), new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund (pre- and post-distribution), and its financial results of operation. The Directors have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the terms of the current management agreement. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is sharing economies of scale, to the extent they exist, through its fee structure, and through reinvestment in its business, infrastructure, investment capabilities and initiatives to provide shareholders enhanced and expanded content and services.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage and other transaction fees and expenses relating to acquisition and disposition of portfolio securities, acquired fund fees and expenses, taxes, interest, extraordinary expenses, fund litigation expenses, fees and expenses of the Fund’s independent Directors (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Investment Company Act Rule 12b-1. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider comparing the Fund’s unified fee to the total expense ratios of its peers. The unified fee charged to shareholders of the Fund was above the median of the total expense ratios of the Fund’s peer expense universe. In addition, the Board reviewed the Fund’s position relative to the narrower set of its expense group peers. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this
32
information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
Payments to Intermediaries. The Directors also requested and received a description of payments made to intermediaries by the Fund and the Advisor and services provided in response thereto. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund. The Directors reviewed such information and received representations from the Advisor that all such payments by the Fund were made pursuant to the Fund's Rule 12b-1 Plan and that all such payments by the Advisor were made from the Advisor’s resources and reasonable profits.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the possible existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. They concluded that the Advisor’s primary business is managing funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. To the extent there are potential collateral benefits, the Board has been advised and has taken this into consideration in its review of the management contract with the Fund. The Board noted that additional assets from other clients may offer the Advisor some benefit from increased leverage with prospective clients, service providers, and counterparties. Additionally, the Advisor may receive proprietary research from broker-dealers that execute fund portfolio transactions, which the Board concluded is likely to benefit other clients of the Advisor, as well as Fund shareholders. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board concluded that appropriate allocation methodologies had been employed to assign resources and the cost of those resources to these other clients.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Directors. As a result of this process, the Board, including all of the independent Directors, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and received over time, determined that the terms of the management agreement are fair and reasonable and that the management fee charged to the Fund is reasonable in light of the services provided and that the management agreement between the Fund and the Advisor should be renewed for an additional one-year period.
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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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Other Tax Information
The following information is provided pursuant to provisions of the Internal Revenue Code.
The fund hereby designates up to the maximum amount allowable as qualified dividend income for
the fiscal year ended November 30, 2023.
For the fiscal year ended November 30, 2023, the fund intends to pass through to shareholders
foreign source income of $237,334 and foreign taxes paid of $21,675, or up to the maximum
amount allowable, as a foreign tax credit. Foreign source income and foreign tax expense per
outstanding share on November 30, 2023 are $0.2239 and $0.0204, respectively.
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Notes |
36
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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. | ||||||||
©2024 American Century Proprietary Holdings, Inc. All rights reserved. CL-ANN-91033 2401 |
![image5.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image5.jpg)
Annual Report | |||||
November 30, 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) |
The Securities and Exchange Commission (SEC) adopted new rules that will require annual and semiannual reports to transition to a new format known as a Tailored Shareholder Report beginning in July 2024. The amendments will require the transmission of a concise report highlighting key fund information to investors. The detailed financial statements will remain available on our website, will be delivered to investors free of charge upon request, and will continue to be filed with the SEC.
Table of Contents |
President’s Letter | |||||
Performance | |||||
Portfolio Commentary | |||||
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 | |||||
Report of Independent Registered Public Accounting Firm | |||||
Management | |||||
Approval of Management Agreement | |||||
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 |
![jthomasrev0514a14.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/jthomasrev0514a14.jpg)
Dear Investor:
Thank you for reviewing this annual report for the period ending November 30, 2023. Annual reports help convey important information about fund returns, including market factors that affect performance. For additional investment insights, please visit americancentury.com.
Stocks Rallied Amid Persistent Volatility
Despite ongoing challenges from a variety of sources, global stocks broadly delivered solid gains for the 12-month period. Amid persistent inflation, central banks continued to raise interest rates through much of the fiscal year. Additionally, banking industry turmoil, economic uncertainty and geopolitical unrest added to the volatile backdrop.
Overall, investor expectations for central banks to conclude their rate-hike campaigns fueled optimism. In the first half of the period, inflation’s steady slowdown, a series of bank failures and mounting recession worries prompted investors to regularly recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to lift interest rates through the third quarter of 2023.
By period-end, most central banks had paused their tightening campaigns alongside slower inflation rates and weakening growth data. While many observers believed the pauses indicated an end to the long-standing rate-hike programs, still-above-target inflation prompted policymakers to leave their options open. Nevertheless, financial markets rallied late in the period, convinced central banks would pivot to rate cuts in 2024.
In addition, corporate earnings generally remained better than expected, which also aided stock returns. Overall, most broad global stock indices delivered double-digit gains for the period. Growth stocks were particularly strong and significantly outperformed their value-stock peers. However, among small-cap stocks, the value style outperformed. Emerging markets stocks advanced but notably lagged their developed markets counterparts.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of persistent inflation, tighter financial conditions and recession risk. In addition, the Israel-Hamas war complicates the global backdrop and represents another key consideration for our investment teams.
Our firm has a long history of helping clients weather unpredictable and volatile markets, and we’re determined to meet today’s challenges. Thank you for your trust and confidence in American Century Investments.
With appreciation and respect,
![image48a16a.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image48a16a.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Performance |
Total Returns as of November 30, 2023 | ||||||||||||||||||||
Average Annual Returns | ||||||||||||||||||||
Ticker Symbol | 1 year | 5 years | 10 years | Since Inception | Inception Date | |||||||||||||||
Investor Class | TWGGX | 8.84% | 10.05% | 8.23% | — | 12/1/98 | ||||||||||||||
MSCI ACWI Index | — | 12.01% | 9.07% | 7.60% | — | — | ||||||||||||||
I Class | AGGIX | 9.03% | 10.25% | 8.44% | — | 8/1/00 | ||||||||||||||
Y Class | AGYGX | 9.18% | 10.41% | — | 10.58% | 4/10/17 | ||||||||||||||
A Class | AGGRX | 2/5/99 | ||||||||||||||||||
No sales charge | 8.56% | 9.76% | 7.96% | — | ||||||||||||||||
With sales charge | 2.31% | 8.47% | 7.32% | — | ||||||||||||||||
C Class | AGLCX | 7.72% | 8.94% | 7.15% | — | 3/1/02 | ||||||||||||||
R Class | AGORX | 8.20% | 9.49% | 7.69% | — | 7/29/05 | ||||||||||||||
R5 Class | AGFGX | 9.03% | 10.27% | — | 10.43% | 4/10/17 | ||||||||||||||
R6 Class | AGGDX | 9.20% | 10.43% | 8.60% | — | 7/26/13 |
Average annual returns since inception are presented when ten years of performance history is not available.
C Class shares will automatically convert to A Class shares after being held for approximately eight years. C Class average annual returns do not reflect this conversion.
Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
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Growth of $10,000 Over 10 Years | ||
$10,000 investment made November 30, 2013 | ||
Performance for other share classes will vary due to differences in fee structure. |
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Value on November 30, 2023 | |||||
Investor Class — $22,063 | |||||
MSCI ACWI Index — $20,810 | |||||
Total Annual Fund Operating Expenses | |||||||||||||||||||||||
Investor Class | I Class | Y Class | A Class | C Class | R Class | R5 Class | R6 Class | ||||||||||||||||
1.10% | 0.90% | 0.75% | 1.35% | 2.10% | 1.60% | 0.90% | 0.75% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
4
Portfolio Commentary |
Portfolio Managers: Keith Creveling, Brent Puff and Ted Harlan
Performance Summary
Focused Global Growth returned 8.84%* for the fiscal year ended November 30, 2023, compared with the 12.01% return of its benchmark, the MSCI ACWI Index. The fund’s return reflects operating expenses, while the index’s return does not.
Stock selection in the materials sector, along with both stock selection and underweight exposure relative to the benchmark in the communication services sector, detracted from relative performance. On the upside, stock selection in industrials and health care bolstered results. Geographically, relative performance was hindered by stock selection in the U.S. and an overweight to Hong Kong. Conversely, stock selection and an overweight in Denmark lifted relative returns, as did a lack of exposure to China.
Materials, Communication Services and Information Technology Detracted
In materials, the shares of agricultural science company FMC declined after the company reduced its revenue forecast for the second quarter and full year of 2023. Subsequently, we exited the position.
In communication services, holding no shares of Facebook’s parent company Meta Platforms hindered relative results during a period when the largest technology-related stocks were responsible for much of the stock market’s gains.
Similarly, an underweight to the information technology sector held back relative returns, with both underweight exposure and stock selection in semiconductors and semiconductor equipment having negative impacts. As demand grew exponentially for technologies related to the development of artificial intelligence applications, chipmaker NVIDIA earned record revenues, and our underweight position in the stock curbed relative performance.
Industrials, Health Care and Consumer Staples Contributed
Within the industrials sector, an investment in aerospace components manufacturer TransDigm Group contributed during the reporting period, as multiple solid quarterly earnings reports, backed by positive outlooks for defense spending and air travel, buoyed its share price.
In health care, Novo Nordisk added to relative results. The Danish pharmaceutical company’s popular treatments for diabetes and obesity continued to boost total revenues and, in turn, elevated the stock.
An underweight allocation to consumer staples, with no exposure to either food products or consumer staples distribution and retail, benefited relative performance.
*All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the fund’s benchmark, other share classes may not. See page 3 for returns for all share classes.
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Fund Characteristics |
NOVEMBER 30, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 98.4% | ||||
Short-Term Investments | 0.8% | ||||
Other Assets and Liabilities | 0.8% | ||||
Top Five Countries | % of net assets | ||||
United States | 67.3% | ||||
United Kingdom | 5.3% | ||||
Denmark | 3.1% | ||||
Spain | 2.7% | ||||
France | 2.6% |
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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 June 1, 2023 to November 30, 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 6/1/23 | Ending Account Value 11/30/23 | Expenses Paid During Period(1) 6/1/23 - 11/30/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,058.20 | $5.62 | 1.09% | ||||||||||
I Class | $1,000 | $1,058.90 | $4.59 | 0.89% | ||||||||||
Y Class | $1,000 | $1,059.20 | $3.82 | 0.74% | ||||||||||
A Class | $1,000 | $1,056.70 | $6.91 | 1.34% | ||||||||||
C Class | $1,000 | $1,051.90 | $10.75 | 2.09% | ||||||||||
R Class | $1,000 | $1,054.90 | $8.19 | 1.59% | ||||||||||
R5 Class | $1,000 | $1,058.90 | $4.59 | 0.89% | ||||||||||
R6 Class | $1,000 | $1,059.30 | $3.82 | 0.74% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,019.60 | $5.52 | 1.09% | ||||||||||
I Class | $1,000 | $1,020.61 | $4.51 | 0.89% | ||||||||||
Y Class | $1,000 | $1,021.36 | $3.75 | 0.74% | ||||||||||
A Class | $1,000 | $1,018.35 | $6.78 | 1.34% | ||||||||||
C Class | $1,000 | $1,014.59 | $10.56 | 2.09% | ||||||||||
R Class | $1,000 | $1,017.10 | $8.04 | 1.59% | ||||||||||
R5 Class | $1,000 | $1,020.61 | $4.51 | 0.89% | ||||||||||
R6 Class | $1,000 | $1,021.36 | $3.75 | 0.74% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 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.
8
Schedule of Investments |
NOVEMBER 30, 2023
Shares | Value | |||||||
COMMON STOCKS — 98.4% | ||||||||
Brazil — 2.5% | ||||||||
B3 SA - Brasil Bolsa Balcao | 5,497,400 | $ | 14,944,020 | |||||
Canada — 2.5% | ||||||||
Canadian Pacific Kansas City Ltd. | 206,940 | 14,899,680 | ||||||
Denmark — 3.1% | ||||||||
Novo Nordisk AS, Class B | 179,810 | 18,370,219 | ||||||
France — 2.6% | ||||||||
AXA SA | 483,690 | 15,081,644 | ||||||
Hong Kong — 2.4% | ||||||||
Hong Kong Exchanges & Clearing Ltd. | 399,083 | 14,128,544 | ||||||
India — 2.5% | ||||||||
HDFC Bank Ltd. | 767,830 | 14,394,813 | ||||||
Ireland — 2.5% | ||||||||
ICON PLC(1) | 54,910 | 14,657,675 | ||||||
Netherlands — 2.5% | ||||||||
ASML Holding NV | 21,850 | 14,891,354 | ||||||
Spain — 2.7% | ||||||||
Cellnex Telecom SA | 420,150 | 16,040,718 | ||||||
Switzerland — 2.5% | ||||||||
Alcon, Inc. | 197,620 | 14,906,409 | ||||||
United Kingdom — 5.3% | ||||||||
AstraZeneca PLC | 116,390 | 14,980,127 | ||||||
London Stock Exchange Group PLC | 146,170 | 16,478,221 | ||||||
31,458,348 | ||||||||
United States — 67.3% | ||||||||
Alphabet, Inc., Class A(1) | 204,290 | 27,074,554 | ||||||
Amazon.com, Inc.(1) | 179,630 | 26,242,147 | ||||||
Aptiv PLC(1) | 145,050 | 12,015,942 | ||||||
Arthur J Gallagher & Co. | 60,560 | 15,079,440 | ||||||
Booz Allen Hamilton Holding Corp. | 114,000 | 14,264,820 | ||||||
Cheniere Energy, Inc. | 84,380 | 15,369,817 | ||||||
CoStar Group, Inc.(1) | 179,300 | 14,889,072 | ||||||
Danaher Corp. | 71,940 | 16,064,921 | ||||||
GXO Logistics, Inc.(1) | 257,287 | 14,474,967 | ||||||
Howmet Aerospace, Inc. | 286,070 | 15,047,282 | ||||||
Humana, Inc. | 20,170 | 9,779,626 | ||||||
Mastercard, Inc., Class A | 39,857 | 16,494,022 | ||||||
Microsoft Corp. | 106,410 | 40,319,813 | ||||||
Monster Beverage Corp.(1) | 262,520 | 14,477,978 | ||||||
NVIDIA Corp. | 52,140 | 24,385,878 | ||||||
Pioneer Natural Resources Co. | 61,758 | 14,305,623 | ||||||
Progressive Corp. | 91,070 | 14,938,212 | ||||||
Prologis, Inc. | 133,550 | 15,348,902 | ||||||
S&P Global, Inc. | 35,970 | 14,957,405 | ||||||
SBA Communications Corp. | 62,330 | 15,393,017 | ||||||
ServiceNow, Inc.(1) | 22,300 | 15,292,002 | ||||||
TransDigm Group, Inc. | 14,450 | 13,913,472 |
9
Shares | Value | |||||||
Workday, Inc., Class A(1) | 63,100 | $ | 17,082,432 | |||||
397,211,344 | ||||||||
TOTAL COMMON STOCKS (Cost $506,524,209) | 580,984,768 | |||||||
SHORT-TERM INVESTMENTS — 0.8% | ||||||||
Money Market Funds† | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 9,913 | 9,913 | ||||||
Repurchase Agreements — 0.8% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.625%, 7/31/29, valued at $549,761), in a joint trading account at 5.30%, dated 11/30/23, due 12/1/23 (Delivery value $538,856) | 538,777 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 0.375%, 7/15/27, valued at $4,194,314), at 5.30%, dated 11/30/23, due 12/1/23 (Delivery value $4,112,605) | 4,112,000 | |||||||
4,650,777 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $4,660,690) | 4,660,690 | |||||||
TOTAL INVESTMENT SECURITIES — 99.2% (Cost $511,184,899) | 585,645,458 | |||||||
OTHER ASSETS AND LIABILITIES — 0.8% | 4,438,185 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 590,083,643 |
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Financials | 23.1% | ||||
Information Technology | 19.0% | ||||
Health Care | 15.0% | ||||
Industrials | 12.3% | ||||
Real Estate | 7.7% | ||||
Communication Services | 7.3% | ||||
Consumer Discretionary | 6.5% | ||||
Energy | 5.0% | ||||
Consumer Staples | 2.5% | ||||
Short-Term Investments | 0.8% | ||||
Other Assets and Liabilities | 0.8% |
NOTES TO SCHEDULE OF INVESTMENTS |
†Category is less than 0.05% of total net assets.
(1)Non-income producing.
See Notes to Financial Statements.
10
Statement of Assets and Liabilities |
NOVEMBER 30, 2023 | |||||
Assets | |||||
Investment securities, at value (cost of $511,184,899) | $ | 585,645,458 | |||
Foreign currency holdings, at value (cost of $35) | 35 | ||||
Receivable for investments sold | 4,805,366 | ||||
Receivable for capital shares sold | 56,434 | ||||
Dividends and interest receivable | 717,016 | ||||
Other assets | 1,052 | ||||
591,225,361 | |||||
Liabilities | |||||
Payable for capital shares redeemed | 250,434 | ||||
Accrued management fees | 470,222 | ||||
Distribution and service fees payable | 9,280 | ||||
Accrued foreign taxes | 375,151 | ||||
Accrued other expenses | 36,631 | ||||
1,141,718 | |||||
Net Assets | $ | 590,083,643 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 499,259,689 | |||
Distributable earnings (loss) | 90,823,954 | ||||
$ | 590,083,643 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $390,767,447 | 36,429,241 | $10.73 | ||||||||
I Class, $0.01 Par Value | $77,104,408 | 6,920,010 | $11.14 | ||||||||
Y Class, $0.01 Par Value | $332,828 | 29,499 | $11.28 | ||||||||
A Class, $0.01 Par Value | $25,494,423 | 2,534,277 | $10.06 | ||||||||
C Class, $0.01 Par Value | $2,184,320 | 308,125 | $7.09 | ||||||||
R Class, $0.01 Par Value | $5,519,826 | 574,854 | $9.60 | ||||||||
R5 Class, $0.01 Par Value | $9,663 | 867 | $11.15 | ||||||||
R6 Class, $0.01 Par Value | $88,670,728 | 7,873,921 | $11.26 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except A Class, for which the maximum offering price per share was $10.67 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of A Class and C Class.
See Notes to Financial Statements.
11
Statement of Operations |
YEAR ENDED NOVEMBER 30, 2023 | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $583,620) | $ | 8,928,842 | |||
Interest | 299,910 | ||||
9,228,752 | |||||
Expenses: | |||||
Management fees | 5,759,518 | ||||
Distribution and service fees: | |||||
A Class | 64,866 | ||||
C Class | 24,703 | ||||
R Class | 29,920 | ||||
Directors' fees and expenses | 19,890 | ||||
Other expenses | 77,676 | ||||
5,976,573 | |||||
Net investment income (loss) | 3,252,179 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions (net of foreign tax expenses paid (refunded) of $121,104) | 21,009,051 | ||||
Foreign currency translation transactions | (45,993) | ||||
20,963,058 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments (includes (increase) decrease in accrued foreign taxes of $163,783) | 24,524,586 | ||||
Translation of assets and liabilities in foreign currencies | 16,529 | ||||
24,541,115 | |||||
Net realized and unrealized gain (loss) | 45,504,173 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 48,756,352 |
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
YEARS ENDED NOVEMBER 30, 2023 AND NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | November 30, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 3,252,179 | $ | 3,734,648 | ||||
Net realized gain (loss) | 20,963,058 | 53,883,424 | ||||||
Change in net unrealized appreciation (depreciation) | 24,541,115 | (173,476,915) | ||||||
Net increase (decrease) in net assets resulting from operations | 48,756,352 | (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) | 17,634,212 | 44,991,325 | ||||||
Net increase (decrease) in net assets | 4,506,942 | (160,066,102) | ||||||
Net Assets | ||||||||
Beginning of period | 585,576,701 | 745,642,803 | ||||||
End of period | $ | 590,083,643 | $ | 585,576,701 |
See Notes to Financial Statements.
13
Notes to Financial Statements |
NOVEMBER 30, 2023
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.
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. 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.
15
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 November 30, 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 November 30, 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.
Other Expenses — A fund’s other expenses may include interest charges, clearing exchange fees, proxy solicitation expenses, fees associated with the recovery of foreign tax reclaims and other miscellaneous expenses.
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.
16
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended November 30, 2023 were $453,474,351 and $496,749,029, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Year ended November 30, 2023 | Year ended November 30, 2022 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 450,000,000 | 450,000,000 | ||||||||||||
Sold | 1,330,890 | $ | 13,536,718 | 1,932,663 | $ | 22,830,018 | ||||||||
Issued in reinvestment of distributions | 4,185,379 | 39,468,121 | 4,250,591 | 57,000,417 | ||||||||||
Redeemed | (4,095,358) | (41,949,103) | (4,218,375) | (49,360,350) | ||||||||||
1,420,911 | 11,055,736 | 1,964,879 | 30,470,085 | |||||||||||
I Class/Shares Authorized | 100,000,000 | 45,000,000 | ||||||||||||
Sold | 1,039,876 | 11,007,895 | 1,832,844 | 22,512,912 | ||||||||||
Issued in reinvestment of distributions | 863,486 | 8,444,893 | 885,350 | 12,262,099 | ||||||||||
Redeemed | (2,119,457) | (22,483,236) | (2,270,173) | (27,276,465) | ||||||||||
(216,095) | (3,030,448) | 448,021 | 7,498,546 | |||||||||||
Y Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 8,554 | 91,496 | 9,940 | 135,647 | ||||||||||
Issued in reinvestment of distributions | 3,477 | 34,387 | 2,640 | 36,897 | ||||||||||
Redeemed | (10,963) | (122,314) | (4,067) | (49,932) | ||||||||||
1,068 | 3,569 | 8,513 | 122,612 | |||||||||||
A Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||
Sold | 514,710 | 4,928,940 | 339,523 | 3,783,093 | ||||||||||
Issued in reinvestment of distributions | 312,247 | 2,769,627 | 326,486 | 4,143,104 | ||||||||||
Redeemed | (779,154) | (7,579,406) | (566,995) | (6,486,681) | ||||||||||
47,803 | 119,161 | 99,014 | 1,439,516 | |||||||||||
C Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 15,900 | 110,764 | 32,854 | 261,919 | ||||||||||
Issued in reinvestment of distributions | 63,840 | 401,551 | 89,588 | 847,510 | ||||||||||
Redeemed | (135,365) | (917,748) | (248,279) | (2,050,541) | ||||||||||
(55,625) | (405,433) | (125,837) | (941,112) | |||||||||||
R Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 87,214 | 805,743 | 93,331 | 1,019,297 | ||||||||||
Issued in reinvestment of distributions | 79,865 | 677,257 | 88,071 | 1,075,356 | ||||||||||
Redeemed | (192,108) | (1,753,944) | (191,599) | (2,163,704) | ||||||||||
(25,029) | (270,944) | (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 | 1,862,989 | 19,904,062 | 1,996,810 | 23,558,711 | ||||||||||
Issued in reinvestment of distributions | 763,180 | 7,532,585 | 736,785 | 10,285,523 | ||||||||||
Redeemed | (1,630,838) | (17,275,008) | (2,160,503) | (27,374,752) | ||||||||||
995,331 | 10,161,639 | 573,092 | 6,469,482 | |||||||||||
Net increase (decrease) | 2,168,459 | $ | 17,634,212 | 2,957,575 | $ | 44,991,325 |
17
6. Fair Value Measurements
The fund's investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund's portfolio holdings.
Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||
Investment Securities | |||||||||||
Common Stocks | |||||||||||
Brazil | — | $ | 14,944,020 | — | |||||||
Denmark | — | 18,370,219 | — | ||||||||
France | — | 15,081,644 | — | ||||||||
Hong Kong | — | 14,128,544 | — | ||||||||
India | — | 14,394,813 | — | ||||||||
Netherlands | — | 14,891,354 | — | ||||||||
Spain | — | 16,040,718 | — | ||||||||
Switzerland | — | 14,906,409 | — | ||||||||
United Kingdom | — | 31,458,348 | — | ||||||||
Other Countries | $ | 426,768,699 | — | — | |||||||
Short-Term Investments | 9,913 | 4,650,777 | — | ||||||||
$ | 426,778,612 | $ | 158,866,846 | — |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, war, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
18
8. Federal Tax Information
On December 19, 2023, the fund declared and paid a per-share distribution from net realized gains to shareholders of record on December 18, 2023 of $0.3568 for the Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class.
On December 19, 2023, the fund declared and paid the following per-share distributions from net investment income to shareholders of record on December 18,2023:
Investor Class | I Class | Y Class | A Class | C Class | R Class | R5 Class | R6 Class | ||||||||||||||||
$0.0504 | $0.0724 | $0.0888 | $0.0230 | — | — | $0.0724 | $0.0888 |
The tax character of distributions paid during the years ended November 30, 2023 and November 30, 2022 were as follows:
2023 | 2022 | |||||||
Distributions Paid From | ||||||||
Ordinary income | $ | 3,452,272 | $ | 9,640,234 | ||||
Long-term capital gains | $ | 58,431,350 | $ | 79,558,350 |
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 federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments | $ | 516,890,287 | |||
Gross tax appreciation of investments | $ | 78,330,782 | |||
Gross tax depreciation of investments | (9,575,611) | ||||
Net tax appreciation (depreciation) of investments | 68,755,171 | ||||
Net tax appreciation (depreciation) on translation of assets and liabilities in foreign currencies | (363,604) | ||||
Net tax appreciation (depreciation) | $ | 68,391,567 | |||
Undistributed ordinary income | $ | 3,074,507 | |||
Accumulated long-term gains | $ | 19,357,880 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
19
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations*: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $11.10 | 0.05 | 0.77 | 0.82 | (0.06) | (1.13) | (1.19) | $10.73 | 8.84% | 1.09% | 0.50% | 79% | $390,767 | ||||||||||||||||||||||||||||
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 | —(3) | (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 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $11.48 | 0.07 | 0.80 | 0.87 | (0.08) | (1.13) | (1.21) | $11.14 | 9.03% | 0.89% | 0.70% | 79% | $77,104 | ||||||||||||||||||||||||||||
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 | —(3) | 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 | ||||||||||||||||||||||||||||
Y Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $11.61 | 0.09 | 0.81 | 0.90 | (0.10) | (1.13) | (1.23) | $11.28 | 9.18% | 0.74% | 0.85% | 79% | $333 | ||||||||||||||||||||||||||||
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 |
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 | $10.48 | 0.02 | 0.72 | 0.74 | (0.03) | (1.13) | (1.16) | $10.06 | 8.56% | 1.34% | 0.25% | 79% | $25,494 | ||||||||||||||||||||||||||||
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 | —(3) | 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 | ||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $7.76 | (0.03) | 0.49 | 0.46 | — | (1.13) | (1.13) | $7.09 | 7.72% | 2.09% | (0.50)% | 79% | $2,184 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $10.06 | —(3) | 0.68 | 0.68 | (0.01) | (1.13) | (1.14) | $9.60 | 8.20% | 1.59% | 0.00%(4) | 79% | $5,520 | ||||||||||||||||||||||||||||
2022 | $13.79 | —(3) | (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 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations*: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
R5 Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $11.49 | 0.07 | 0.80 | 0.87 | (0.08) | (1.13) | (1.21) | $11.15 | 9.03% | 0.89% | 0.70% | 79% | $10 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $11.59 | 0.09 | 0.81 | 0.90 | (0.10) | (1.13) | (1.23) | $11.26 | 9.20% | 0.74% | 0.85% | 79% | $88,671 | ||||||||||||||||||||||||||||
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 |
Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)Per-share amount was less than $0.005.
(4)Ratio was less than 0.005%.
*The amount shown for a share outstanding throughout the period may not correlate with the Statement(s) of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of a fund in relation to income earned and/or fluctuations in the fair value of a fund's investments.
See Notes to Financial Statements.
Report of Independent Registered Public Accounting Firm |
To the Shareholders of the Focused Global Growth Fund and the Board of Directors of American Century World Mutual Funds, Inc.
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Focused Global Growth Fund (the “Fund”), one of the funds constituting the American Century World Mutual Funds, Inc., as of November 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Focused Global Growth Fund of the American Century World Mutual Funds, Inc. as of November 30, 2023, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Kansas City, Missouri
January 17, 2024
We have served as the auditor of one or more American Century investment companies since 1997.
23
Management |
The Board of Directors
The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire on December 31 of the year in which they reach their 75th birthday.
Jonathan S. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Brian Bulatao (1964) | Director | Since 2022 | Chief Administrative Officer, Activision Blizzard, Inc. (2021 to present); Under Secretary of State for Management, U.S. Department of State (2018 to 2021); Chief Operating Officer, Central Intelligence Agency (2017 to 2018) | 65 | None | ||||||||||||
Thomas W. Bunn (1953) | Director | Since 2017 | Retired | 65 | None | ||||||||||||
Chris H. Cheesman (1962) | Director | Since 2019 | Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018) | 65 | Alleghany Corporation (2021 to 2022) | ||||||||||||
Barry Fink (1955) | Director | Since 2012 (independent since 2016) | Retired | 65 | None | ||||||||||||
Rajesh K. Gupta (1960) | Director | Since 2019 | Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019) | 65 | None |
24
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Lynn Jenkins (1963) | Director | Since 2019 | Consultant, LJ Strategies (2019 to present); United States Representative, U.S. House of Representatives (2009 to 2018) | 65 | MGP Ingredients, Inc. (2019 to 2021) | ||||||||||||
Jan M. Lewis (1957) | Director and Board Chair | Since 2011 (Board Chair since 2022) | Retired | 65 | None | ||||||||||||
Gary C. Meltzer (1963) | Director | Since 2022 | Advisor, Pontoro (2021 to present); Executive Advisor, Consultant and Investor, Harris Ariel Advisory LLC (2020 to present); Managing Partner, PricewaterhouseCoopers LLP (1985 to 2020) | 65 | ExcelFin Acquisition Corp., Apollo Realty Income Solutions, Inc. | ||||||||||||
Stephen E. Yates(1) (1948) | Director | Since 2012 | Retired | 118 | None | ||||||||||||
Interested Director | |||||||||||||||||
Jonathan S. Thomas (1963) | Director | Since 2007 | President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Director, ACC and other ACC subsidiaries | 150 | None |
(1) Effective December 31, 2023, Steven E. Yates retired from the Board of Directors.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.
25
Officers
The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for each of the 16 investment companies in the American Century family of funds. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Offices with the Funds | Principal Occupation(s) During the Past Five Years | ||||||
Patrick Bannigan (1965) | President since 2019 | Executive Vice President and Director, ACC (2012 to present); Chief Financial Officer, Chief Accounting Officer and Treasurer, ACC (2015 to present). Also serves as President, ACS; Vice President, ACIM; Chief Financial Officer, Chief Accounting Officer and/or Director, ACIM, ACS and other ACC subsidiaries | ||||||
R. Wes Campbell (1974) | Chief Financial Officer and Treasurer since 2018; Vice President since 2023 | Vice President, ACS, (2020 to present); Investment Operations and Investment Accounting, ACS (2000 to present) | ||||||
Amy D. Shelton (1964) | Chief Compliance Officer and Vice President since 2014 | Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present). Also serves as Vice President, ACIS | ||||||
John Pak (1968) | General Counsel and Senior Vice President since 2021 | General Counsel and Senior Vice President, ACC (2021 to present). Also serves as General Counsel and Senior Vice President, ACIM, ACS and ACIS. Chief Legal Officer of Investment and Wealth Management, The Bank of New York Mellon (2014 to 2021) | ||||||
Cihan Kasikara (1974) | Vice President since 2023 | Senior Vice President, ACS (2022 to present); Treasurer, ACS (2023 to present); Vice President, ACS (2020 to 2022); Vice President, Franklin Templeton (2015 to 2020) | ||||||
Kathleen Gunja Nelson (1976) | Vice President since 2023 | Vice President, ACS (2017 to present) | ||||||
Ward D. Stauffer (1960) | Secretary since 2005 | Attorney, ACC (2003 to present) |
26
Approval of Management Agreement |
At a meeting held on June 28, 2023, the Fund’s Board of Directors (the "Board") unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under the Investment Company Act of 1940 (the “Investment Company Act”), contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s Directors, including a majority of the independent Directors.
Prior to its consideration of the renewal of the management agreement, the Directors requested and reviewed data and information compiled by the Advisor and certain independent data providers concerning the Fund. This review was in addition to the oversight and evaluation undertaken by the Board and its committees on a continual basis and the information received was supplemental to the information that the Board and its committees receive and consider over time.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor and its affiliates included, but was not limited to
•the nature, extent, and quality of investment management, shareholder services, distribution services, and other services provided to the Fund;
•the wide range of programs and services the Advisor and other service providers provide to the Fund and its shareholders on a routine and non-routine basis;
•the Fund’s investment performance compared to appropriate benchmarks and/or peer groups of other mutual funds with similar investment objectives and strategies;
•the cost of owning the Fund compared to the cost of owning similarly-managed funds;
•the Advisor’s compliance policies, procedures, and regulatory experience and those of certain other service providers;
•the Advisor’s strategic plans, generally, and with respect to areas of heightened regulatory interest in the mutual fund industry and certain recent geopolitical and other issues;
•the Advisor’s business continuity plans, vendor management practices, and information security practices;
•the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the Advisor’s financial results of operation;
•possible economies of scale associated with the Advisor’s management of the Fund;
•any collateral benefits derived by the Advisor from the management of the Fund;
•fees and expenses associated with any investment by the Fund in other funds;
•payments to intermediaries by the Fund and the Advisor and services provided by intermediaries in connection therewith; and
•services provided and charges to the Advisor's other investment management clients.
The Board held two meetings to consider the renewal. The independent Directors also met in private session multiple times to review and discuss the information provided in response to their request. The independent Directors held active discussions with the Advisor regarding the renewal of the management agreement, requesting supplemental information, and reviewing information provided by the Advisor in response thereto. The independent Directors had the benefit of the advice of their independent counsel throughout the process.
Factors Considered
The Directors considered all of the information provided by the Advisor, the independent data providers, and independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Directors did not identify any single factor as being all-important or controlling, and each Director may have attributed different levels of importance to different factors.
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In deciding to renew the management agreement, the Board based its decision on a number of factors, including without limitation the following:
Nature, Extent and Quality of Services — Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that the Advisor provides or arranges at its own expense a wide variety of services which include, without limitation, the following:
•constructing and designing the Fund
•portfolio research and security selection
•initial capitalization/funding
•securities trading
•Fund administration
•custody of Fund assets
•daily valuation of the Fund’s portfolio
•liquidity monitoring and management
•risk management, including information security
•shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications
•legal services (except the independent Directors’ counsel)
•regulatory and portfolio compliance
•financial reporting
•marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans)
The Board noted that many of these services have expanded over time in terms of both quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and principal investment strategies. Further, the Directors recognize that the Advisor has an obligation to monitor trading activities, and in particular to seek the best execution of fund trades, and to evaluate the use of and payment for research. In providing these services, the Advisor utilizes teams of investment professionals who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Fund Performance Review Committee, provides oversight of the investment performance process. It regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Directors also review investment performance information during the management agreement renewal process. If performance concerns are identified, the Board discusses with the Advisor the reasons for such results and any actions being taken to improve performance and may conduct special reviews until performance improves. The Fund’s performance was above its benchmark for the three-, five-, and ten-year periods and below its benchmark for the one-year period reviewed by the Board. In relation to industry peers, the Fund was above the median of its peer performance universe as identified by a third-party service provider for the three-, five-, and ten-year periods and below the median for the one-year period. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
Shareholder and Other Services. Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through its various committees, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction, technology support (including information security), new products and services offered to Fund shareholders, securities trading activities,
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portfolio valuation services, auditing services, and legal and operational compliance activities. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund (pre- and post-distribution), and its financial results of operation. The Directors have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the terms of the current management agreement. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is sharing economies of scale, to the extent they exist, through its fee structure, and through reinvestment in its business, infrastructure, investment capabilities and initiatives to provide shareholders enhanced and expanded content and services. The Board also noted that economies of scale are shared with the Fund and its shareholders through management fee breakpoints that serve to reduce the effective management fee as the assets of the Fund grow. Assets of various classes of the same Fund or similarly-managed products are combined with the assets of the Fund to help achieve those breakpoints.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage and other transaction fees and expenses relating to acquisition and disposition of portfolio securities, acquired fund fees and expenses, taxes, interest, extraordinary expenses, fund litigation expenses, fees and expenses of the Fund’s independent Directors (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Investment Company Act Rule 12b-1. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider comparing the Fund’s unified fee to the total expense ratios of its peers. The unified fee charged to shareholders of the Fund was below the median of the total expense ratios of the Fund’s peer expense universe. In addition, the Board reviewed the Fund’s position relative to the narrower set of its expense group peers. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They
29
observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
Payments to Intermediaries. The Directors also requested and received a description of payments made to intermediaries by the Fund and the Advisor and services provided in response thereto. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund. The Directors reviewed such information and received representations from the Advisor that all such payments by the Fund were made pursuant to the Fund's Rule 12b-1 Plan and that all such payments by the Advisor were made from the Advisor’s resources and reasonable profits.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the possible existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. They concluded that the Advisor’s primary business is managing funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. To the extent there are potential collateral benefits, the Board has been advised and has taken this into consideration in its review of the management contract with the Fund. The Board noted that additional assets from other clients may offer the Advisor some benefit from increased leverage with prospective clients, service providers, and counterparties. Additionally, the Advisor may receive proprietary research from broker-dealers that execute fund portfolio transactions, which the Board concluded is likely to benefit other clients of the Advisor, as well as Fund shareholders. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board concluded that appropriate allocation methodologies had been employed to assign resources and the cost of those resources to these other clients and, where expressly provided, these other client assets may be included with the assets of the Fund to determine breakpoints in the management fee schedule.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Directors. As a result of this process, the Board, including all of the independent Directors, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and received over time, determined that the terms of the management agreement are fair and reasonable and that the management fee charged to the Fund is reasonable in light of the services provided and that the management agreement between the Fund and the Advisor should be renewed for an additional one-year period.
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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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Other Tax Information
The following information is provided pursuant to provisions of the Internal Revenue Code.
The fund hereby designates up to the maximum amount allowable as qualified dividend income for the fiscal year ended November 30, 2023.
For corporate taxpayers, the fund hereby designates $3,452,272, or up to the maximum amount allowable, of ordinary income distributions paid during the fiscal year ended November 30, 2023 as qualified for the corporate dividends received deduction.
The fund hereby designates $58,431,350, or up to the maximum amount allowable, as long-term capital gain distributions (20% rate gain distributions) for the fiscal year ended November 30, 2023.
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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. | ||||||||
©2024 American Century Proprietary Holdings, Inc. All rights reserved. CL-ANN-91028 2401 |
![image5.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image5.jpg)
Annual Report | |||||
November 30, 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) |
The Securities and Exchange Commission (SEC) adopted new rules that will require annual and semiannual reports to transition to a new format known as a Tailored Shareholder Report beginning in July 2024. The amendments will require the transmission of a concise report highlighting key fund information to investors. The detailed financial statements will remain available on our website, will be delivered to investors free of charge upon request, and will continue to be filed with the SEC.
Table of Contents |
President’s Letter | |||||
Performance | |||||
Portfolio Commentary | |||||
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 | |||||
Report of Independent Registered Public Accounting Firm | |||||
Management | |||||
Approval of Management Agreement | |||||
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 |
![jthomasrev0514a14.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/jthomasrev0514a14.jpg)
Dear Investor:
Thank you for reviewing this annual report for the period ending November 30, 2023. Annual reports help convey important information about fund returns, including market factors that affect performance. For additional investment insights, please visit americancentury.com.
Stocks Rallied Amid Persistent Volatility
Despite ongoing challenges from a variety of sources, global stocks broadly delivered solid gains for the 12-month period. Amid persistent inflation, central banks continued to raise interest rates through much of the fiscal year. Additionally, banking industry turmoil, economic uncertainty and geopolitical unrest added to the volatile backdrop.
Overall, investor expectations for central banks to conclude their rate-hike campaigns fueled optimism. In the first half of the period, inflation’s steady slowdown, a series of bank failures and mounting recession worries prompted investors to regularly recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to lift interest rates through the third quarter of 2023.
By period-end, most central banks had paused their tightening campaigns alongside slower inflation rates and weakening growth data. While many observers believed the pauses indicated an end to the long-standing rate-hike programs, still-above-target inflation prompted policymakers to leave their options open. Nevertheless, financial markets rallied late in the period, convinced central banks would pivot to rate cuts in 2024.
In addition, corporate earnings generally remained better than expected, which also aided stock returns. Overall, most broad global stock indices delivered double-digit gains for the period. Growth stocks were particularly strong and significantly outperformed their value-stock peers. However, among small-cap stocks, the value style outperformed. Emerging markets stocks advanced but notably lagged their developed markets counterparts.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of persistent inflation, tighter financial conditions and recession risk. In addition, the Israel-Hamas war complicates the global backdrop and represents another key consideration for our investment teams.
Our firm has a long history of helping clients weather unpredictable and volatile markets, and we’re determined to meet today’s challenges. Thank you for your trust and confidence in American Century Investments.
With appreciation and respect,
![image48a16a.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image48a16a.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Performance |
Total Returns as of November 30, 2023 | |||||||||||||||||||||||
Average Annual Returns | |||||||||||||||||||||||
Ticker Symbol | 1 year | 5 years | Since Inception | Inception Date | |||||||||||||||||||
Investor Class | AFCNX | 0.65% | 6.32% | 6.59% | 3/29/16 | ||||||||||||||||||
MSCI ACWI ex-U.S. Index | — | 9.26% | 5.06% | 5.97% | — | ||||||||||||||||||
I Class | AFCSX | 0.91% | 6.54% | 6.80% | 3/29/16 | ||||||||||||||||||
A Class | AFCLX | 3/29/16 | |||||||||||||||||||||
No sales charge | 0.41% | 6.05% | 6.32% | ||||||||||||||||||||
With sales charge | -5.37% | 4.80% | 5.50% | ||||||||||||||||||||
C Class | AFCHX | -0.35% | 5.27% | 5.53% | 3/29/16 | ||||||||||||||||||
R Class | AFCWX | 0.20% | 5.79% | 6.06% | 3/29/16 | ||||||||||||||||||
R6 Class | AFCMX | 0.99% | 6.69% | 6.96% | 3/29/16 | ||||||||||||||||||
G Class | AFCGX | 1.81% | — | 6.08% | 4/1/19 |
G Class returns would have been lower if a portion of the fees had not been waived.
Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
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Growth of $10,000 Over Life of Class | ||
$10,000 investment made March 29, 2016 | ||
Performance for other share classes will vary due to differences in fee structure. |
![chart-5642c8262444456b871a.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/chart-5642c8262444456b871a.jpg)
Value on November 30, 2023 | |||||
Investor Class — $16,321 | |||||
MSCI ACWI ex-U.S. Index — $15,611 | |||||
Total Annual Fund Operating Expenses | ||||||||||||||||||||
Investor Class | I Class | A Class | C Class | R Class | R6 Class | G Class | ||||||||||||||
1.10% | 0.90% | 1.35% | 2.10% | 1.60% | 0.75% | 0.75% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
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Portfolio Commentary |
Portfolio Managers: Raj Gandhi and Jim Zhao
Performance Summary
Focused International Growth returned 0.65%* for the fiscal year ended November 30, 2023, underperforming its benchmark, the MSCI ACWI ex-U.S. Index, which returned 9.26%. The fund’s return reflects operating expenses, while the index’s return does not.
Higher interest rates cooled inflation in many non-U.S. developed economies as supply chains normalized and energy costs were mostly lower during the period. Despite low sentiment and recession expectations, the consumer remained reasonably strong particularly in demand for services as labor markets held up and wage growth continued. Tighter financial conditions eventually led to slower economic growth as consumption decelerated, manufacturing activity weakened and companies reduced inventory. Earnings growth slowed, but companies continued to beat expectations as consensus estimates assumed a hard landing recession, which did not materialize.
Macroeconomic Concerns Weighed on Earnings Expectations
Within the industrials sector, Japanese e-commerce industrial supplier, MonotaRO, weighed on performance. The company reported decreased sales volume, which the chief executive officer (CEO) attributed to slower new customer acquisitions, lower sales of COVID-19-related products and less demand due to price increases. We exited the position. Rentokil Initial also detracted after the company’s U.S. pest control business showed a surprise slowdown, raising questions about the company’s ability to turn around its Terminix brand. We also sold that position.
Among financials sector holdings, Adyen detracted most from performance. The Netherlands-based payments company’s stock dropped significantly after it issued an unexpected profit warning in September and gave downward guidance for the year. We exited the position. Hong Kong-based insurance company, AIA Group, also weighed on performance after the company’s stock sold off with the broader Chinese market in November. Positioning among banks, including India-based HDFC Bank, was another source of weakness in the sector.
Chinese sporting goods company Li Ning was a notable individual detractor. Investors worried about the potential for a period of promotions and discounts, and management announced plans to expand investment in its smart factory as it pivots from outsourcing to self-production. We sold the position. Other notable detractors included Lonza Group and DSM-Firmenich. Lonza experienced a decline in demand and lower revenue growth. The company’s CEO abruptly announced his departure at the end of September. We also exited that position. DSM-Firmenich lagged as investors digested the company’s completed merger.
On the upside, the top individual contributor to performance was Denmark-based pharmaceuticals company Novo Nordisk. Its outperformance has primarily been driven by the company’s popular weight-loss drugs, Ozempic and Wegovy. Ferrari also added to returns as the luxury sports car manufacturer announced strong performance through the period, and it completed stock buybacks. Schneider Electric was another notable contributor to performance. The France-based company benefited from demand for electrical grid improvements and greater efficiency of electrical systems.
*All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the fund’s benchmark, other share classes may not. See page 3 for returns for all share classes.
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Fund Characteristics |
NOVEMBER 30, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 99.2% | ||||
Short-Term Investments | 0.6% | ||||
Other Assets and Liabilities | 0.2% | ||||
Top Five Countries | % of net assets | ||||
United Kingdom | 16.3% | ||||
France | 13.9% | ||||
Japan | 13.9% | ||||
Germany | 7.7% | ||||
Ireland | 5.0% |
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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 June 1, 2023 to November 30, 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.
7
Beginning Account Value 6/1/23 | Ending Account Value 11/30/23 | Expenses Paid During Period(1) 6/1/23 - 11/30/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $970.50 | $5.38 | 1.09% | ||||||||||
I Class | $1,000 | $971.40 | $4.40 | 0.89% | ||||||||||
A Class | $1,000 | $969.50 | $6.62 | 1.34% | ||||||||||
C Class | $1,000 | $965.40 | $10.30 | 2.09% | ||||||||||
R Class | $1,000 | $968.50 | $7.85 | 1.59% | ||||||||||
R6 Class | $1,000 | $972.20 | $3.66 | 0.74% | ||||||||||
G Class | $1,000 | $975.90 | $0.00 | 0.00%(2) | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,019.60 | $5.52 | 1.09% | ||||||||||
I Class | $1,000 | $1,020.61 | $4.51 | 0.89% | ||||||||||
A Class | $1,000 | $1,018.35 | $6.78 | 1.34% | ||||||||||
C Class | $1,000 | $1,014.59 | $10.56 | 2.09% | ||||||||||
R Class | $1,000 | $1,017.10 | $8.04 | 1.59% | ||||||||||
R6 Class | $1,000 | $1,021.36 | $3.75 | 0.74% | ||||||||||
G Class | $1,000 | $1,025.07 | $0.00 | 0.00%(2) |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 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%.
8
Schedule of Investments |
NOVEMBER 30, 2023
Shares | Value | |||||||
COMMON STOCKS — 99.2% | ||||||||
Australia — 3.9% | ||||||||
CSL Ltd. | 9,120 | $ | 1,582,381 | |||||
NEXTDC Ltd.(1) | 212,400 | 1,823,858 | ||||||
3,406,239 | ||||||||
Canada — 3.7% | ||||||||
Canadian Pacific Kansas City Ltd. | 25,480 | 1,834,365 | ||||||
GFL Environmental, Inc. | 47,857 | 1,373,496 | ||||||
3,207,861 | ||||||||
China — 4.0% | ||||||||
H World Group Ltd., ADR(1) | 37,980 | 1,389,309 | ||||||
Tencent Holdings Ltd. | 51,200 | 2,132,948 | ||||||
3,522,257 | ||||||||
Denmark — 4.8% | ||||||||
Novo Nordisk AS, Class B | 40,884 | 4,176,898 | ||||||
France — 13.9% | ||||||||
Air Liquide SA | 15,291 | 2,898,871 | ||||||
Airbus SE | 11,040 | 1,640,686 | ||||||
Edenred SE | 30,220 | 1,645,996 | ||||||
EssilorLuxottica SA | 7,630 | 1,456,927 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 2,450 | 1,874,934 | ||||||
Schneider Electric SE | 13,886 | 2,555,755 | ||||||
12,073,169 | ||||||||
Germany — 7.7% | ||||||||
Hugo Boss AG | 11,627 | 813,021 | ||||||
Infineon Technologies AG | 52,625 | 2,030,512 | ||||||
Puma SE | 19,840 | 1,281,377 | ||||||
SAP SE | 15,930 | 2,533,996 | ||||||
6,658,906 | ||||||||
Hong Kong — 2.3% | ||||||||
AIA Group Ltd. | 235,400 | 2,023,763 | ||||||
India — 1.9% | ||||||||
HDFC Bank Ltd., ADR | 27,220 | 1,634,289 | ||||||
Indonesia — 2.6% | ||||||||
Bank Central Asia Tbk PT | 3,836,100 | 2,220,271 | ||||||
Ireland — 5.0% | ||||||||
ICON PLC(1) | 9,590 | 2,559,954 | ||||||
Kerry Group PLC, A Shares | 21,780 | 1,762,845 | ||||||
4,322,799 | ||||||||
Italy — 2.8% | ||||||||
Ferrari NV | 6,720 | 2,421,737 | ||||||
Japan — 13.9% | ||||||||
BayCurrent Consulting, Inc. | 54,300 | 1,822,121 | ||||||
Fast Retailing Co. Ltd. | 8,800 | 2,235,606 | ||||||
Keyence Corp. | 6,600 | 2,826,222 | ||||||
Kobe Bussan Co. Ltd. | 51,700 | 1,359,449 | ||||||
Pan Pacific International Holdings Corp. | 80,100 | 1,735,321 | ||||||
Terumo Corp. | 66,600 | 2,126,371 | ||||||
12,105,090 |
9
Shares | Value | |||||||
Netherlands — 2.6% | ||||||||
DSM-Firmenich AG | 23,740 | $ | 2,243,279 | |||||
Norway — 1.9% | ||||||||
Seadrill Ltd.(1) | 37,670 | 1,671,795 | ||||||
Spain — 2.8% | ||||||||
Cellnex Telecom SA | 35,220 | 1,344,648 | ||||||
Iberdrola SA | 89,934 | 1,111,494 | ||||||
2,456,142 | ||||||||
Switzerland — 4.9% | ||||||||
On Holding AG, Class A(1) | 46,870 | 1,359,699 | ||||||
Sika AG | 4,720 | 1,282,655 | ||||||
UBS Group AG | 58,810 | 1,661,829 | ||||||
4,304,183 | ||||||||
Taiwan — 4.2% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 198,000 | 3,621,840 | ||||||
United Kingdom — 16.3% | ||||||||
ARM Holdings PLC, ADR(1) | 23,448 | 1,442,052 | ||||||
AstraZeneca PLC | 24,320 | 3,130,137 | ||||||
Haleon PLC | 434,517 | 1,820,436 | ||||||
HSBC Holdings PLC(2) | 90,400 | 687,711 | ||||||
London Stock Exchange Group PLC | 24,076 | 2,714,166 | ||||||
Melrose Industries PLC | 267,473 | 1,756,081 | ||||||
RELX PLC | 68,930 | 2,652,618 | ||||||
14,203,201 | ||||||||
TOTAL COMMON STOCKS (Cost $79,592,656) | 86,273,719 | |||||||
SHORT-TERM INVESTMENTS — 0.6% | ||||||||
Money Market Funds† | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 2,009 | 2,009 | ||||||
Repurchase Agreements — 0.6% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.625%, 7/31/29, valued at $64,555), in a joint trading account at 5.30%, dated 11/30/23, due 12/1/23 (Delivery value $63,274) | 63,265 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.875%, 4/15/29, valued at $491,778), at 5.30%, dated 11/30/23, due 12/1/23 (Delivery value $482,071) | 482,000 | |||||||
545,265 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $547,274) | 547,274 | |||||||
TOTAL INVESTMENT SECURITIES — 99.8% (Cost $80,139,930) | 86,820,993 | |||||||
OTHER ASSETS AND LIABILITIES — 0.2% | 173,977 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 86,994,970 |
10
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Health Care | 17.3% | ||||
Information Technology | 16.4% | ||||
Industrials | 15.7% | ||||
Consumer Discretionary | 15.1% | ||||
Financials | 14.4% | ||||
Materials | 7.4% | ||||
Consumer Staples | 5.7% | ||||
Communication Services | 4.0% | ||||
Energy | 1.9% | ||||
Utilities | 1.3% | ||||
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 $653,325. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers. At the period end, the aggregate value of the collateral held by the fund was $684,971, all of which is securities collateral.
See Notes to Financial Statements.
11
Statement of Assets and Liabilities |
NOVEMBER 30, 2023 | |||||
Assets | |||||
Investment securities, at value (cost of $80,139,930) — including $653,325 of securities on loan | $ | 86,820,993 | |||
Foreign currency holdings, at value (cost of $5,345) | 5,310 | ||||
Receivable for investments sold | 1,048,272 | ||||
Receivable for capital shares sold | 39,103 | ||||
Dividends and interest receivable | 107,317 | ||||
Securities lending receivable | 156 | ||||
88,021,151 | |||||
Liabilities | |||||
Payable for investments purchased | 813,828 | ||||
Payable for capital shares redeemed | 174,909 | ||||
Accrued management fees | 36,998 | ||||
Distribution and service fees payable | 446 | ||||
1,026,181 | |||||
Net Assets | $ | 86,994,970 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 94,764,657 | |||
Distributable earnings (loss) | (7,769,687) | ||||
$ | 86,994,970 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $13,644,954 | 901,342 | $15.14 | ||||||||
I Class, $0.01 Par Value | $27,033,666 | 1,768,738 | $15.28 | ||||||||
A Class, $0.01 Par Value | $587,790 | 39,321 | $14.95 | ||||||||
C Class, $0.01 Par Value | $35,725 | 2,510 | $14.23 | ||||||||
R Class, $0.01 Par Value | $765,692 | 51,894 | $14.75 | ||||||||
R6 Class, $0.01 Par Value | $7,799,352 | 507,132 | $15.38 | ||||||||
G Class, $0.01 Par Value | $37,127,791 | 2,356,510 | $15.76 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except A Class, for which the maximum offering price per share was $15.86 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of A Class and C Class.
See Notes to Financial Statements.
12
Statement of Operations |
YEAR ENDED NOVEMBER 30, 2023 | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $97,830) | $ | 1,205,789 | |||
Interest | 101,039 | ||||
Securities lending, net | 5,548 | ||||
1,312,376 | |||||
Expenses: | |||||
Management fees | 723,304 | ||||
Distribution and service fees: | |||||
A Class | 388 | ||||
C Class | 398 | ||||
R Class | 5,815 | ||||
Directors' fees and expenses | 2,869 | ||||
Other expenses | 572 | ||||
733,346 | |||||
Fees waived - G Class | (228,903) | ||||
504,443 | |||||
Net investment income (loss) | 807,933 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | (7,053,919) | ||||
Foreign currency translation transactions | (16,034) | ||||
(7,069,953) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 6,994,830 | ||||
Translation of assets and liabilities in foreign currencies | 1,353 | ||||
6,996,183 | |||||
Net realized and unrealized gain (loss) | (73,770) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 734,163 |
See Notes to Financial Statements.
13
Statement of Changes in Net Assets |
YEARS ENDED NOVEMBER 30, 2023 AND NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | November 30, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 807,933 | $ | 661,481 | ||||
Net realized gain (loss) | (7,069,953) | (8,089,593) | ||||||
Change in net unrealized appreciation (depreciation) | 6,996,183 | (8,211,460) | ||||||
Net increase (decrease) in net assets resulting from operations | 734,163 | (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) | 4,147,257 | 39,987,628 | ||||||
Net increase (decrease) in net assets | 4,231,310 | 22,739,691 | ||||||
Net Assets | ||||||||
Beginning of period | 82,763,660 | 60,023,969 | ||||||
End of period | $ | 86,994,970 | $ | 82,763,660 |
See Notes to Financial Statements.
14
Notes to Financial Statements |
NOVEMBER 30, 2023
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.
15
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.
16
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation's investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation's transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 11% 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%.
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 November 30, 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.
17
Other Expenses — A fund’s other expenses may include interest charges, clearing exchange fees, proxy solicitation expenses, fees associated with the recovery of foreign tax reclaims and other miscellaneous expenses.
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 November 30, 2023 were $56,112,375 and $49,893,175, respectively.
18
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Year ended November 30, 2023 | Year ended November 30, 2022 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||||||
Sold | 222,961 | $ | 3,473,694 | 497,299 | $ | 8,113,623 | ||||||||
Issued in reinvestment of distributions | 3,584 | 52,535 | 28,000 | 542,364 | ||||||||||
Redeemed | (320,179) | (4,895,744) | (640,573) | (10,180,740) | ||||||||||
(93,634) | (1,369,515) | (115,274) | (1,524,753) | |||||||||||
I Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 483,105 | 7,399,760 | 1,955,399 | 30,447,471 | ||||||||||
Issued in reinvestment of distributions | 11,631 | 171,794 | 25,020 | 488,383 | ||||||||||
Redeemed | (938,362) | (14,162,798) | (714,654) | (10,372,273) | ||||||||||
(443,626) | (6,591,244) | 1,265,765 | 20,563,581 | |||||||||||
A Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 38,047 | 515,691 | 3,033 | 51,768 | ||||||||||
Issued in reinvestment of distributions | 11 | 156 | 107 | 2,055 | ||||||||||
Redeemed | (5,292) | (79,076) | (1,570) | (30,039) | ||||||||||
32,766 | 436,771 | 1,570 | 23,784 | |||||||||||
C Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 257 | 3,735 | 415 | 6,221 | ||||||||||
Issued in reinvestment of distributions | — | — | 82 | 1,520 | ||||||||||
Redeemed | (1,131) | (16,767) | (151) | (2,345) | ||||||||||
(874) | (13,032) | 346 | 5,396 | |||||||||||
R Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 27,534 | 414,806 | 34,143 | 527,632 | ||||||||||
Issued in reinvestment of distributions | — | — | 1,566 | 29,742 | ||||||||||
Redeemed | (50,538) | (699,364) | (19,203) | (299,833) | ||||||||||
(23,004) | (284,558) | 16,506 | 257,541 | |||||||||||
R6 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 249,710 | 3,967,587 | 380,511 | 5,632,494 | ||||||||||
Issued in reinvestment of distributions | 2,723 | 40,405 | 875 | 17,151 | ||||||||||
Redeemed | (131,645) | (2,074,557) | (28,226) | (422,548) | ||||||||||
120,788 | 1,933,435 | 353,160 | 5,227,097 | |||||||||||
G Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||||||
Sold | 896,696 | 14,020,911 | 1,045,499 | 17,456,648 | ||||||||||
Issued in reinvestment of distributions | 25,426 | 383,934 | 25,645 | 511,608 | ||||||||||
Redeemed | (273,394) | (4,369,445) | (167,811) | (2,533,274) | ||||||||||
648,728 | 10,035,400 | 903,333 | 15,434,982 | |||||||||||
Net increase (decrease) | 241,144 | $ | 4,147,257 | 2,425,406 | $ | 39,987,628 |
19
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 | |||||||||||
Canada | $ | 1,373,496 | $ | 1,834,365 | — | ||||||
China | 1,389,309 | 2,132,948 | — | ||||||||
India | 1,634,289 | — | — | ||||||||
Ireland | 2,559,954 | 1,762,845 | — | ||||||||
Norway | 1,671,795 | — | — | ||||||||
Switzerland | 1,359,699 | 2,944,484 | — | ||||||||
United Kingdom | 1,442,052 | 12,761,149 | — | ||||||||
Other Countries | — | 53,407,334 | — | ||||||||
Short-Term Investments | 2,009 | 545,265 | — | ||||||||
$ | 11,432,603 | $ | 75,388,390 | — |
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.
20
8. Federal Tax Information
On December 19, 2023, the fund declared and paid the following per-share distributions from net investment income to shareholders of record on December 18, 2023:
Investor Class | I Class | A Class | C Class | R Class | R6 Class | G Class | ||||||||||||||
$0.0559 | $0.0869 | $0.0170 | — | — | $0.1102 | $0.2252 |
The tax character of distributions paid during the years ended November 30, 2023 and November 30, 2022 were as follows:
2023 | 2022 | |||||||
Distributions Paid From | ||||||||
Ordinary income | $ | 650,110 | $ | 107,275 | ||||
Long-term capital gains | — | $ | 1,501,090 |
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 federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments | $ | 80,590,578 | |||
Gross tax appreciation of investments | $ | 10,130,148 | |||
Gross tax depreciation of investments | (3,899,733) | ||||
Net tax appreciation (depreciation) of investments | 6,230,415 | ||||
Net tax appreciation (depreciation) on translation of assets and liabilities in foreign currencies | 119 | ||||
Net tax appreciation (depreciation) | $ | 6,230,534 | |||
Undistributed ordinary income | $ | 791,627 | |||
Accumulated short-term capital losses | $ | (10,595,950) | |||
Accumulated long-term capital losses | $ | (4,195,898) |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
Accumulated capital losses 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.
21
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations*: | 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 | $15.10 | 0.08 | 0.02 | 0.10 | (0.06) | — | (0.06) | $15.14 | 0.65% | 1.09% | 1.09% | 0.47% | 0.47% | 61% | $13,645 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | $15.25 | 0.11 | 0.01 | 0.12 | (0.09) | — | (0.09) | $15.28 | 0.91% | 0.89% | 0.89% | 0.67% | 0.67% | 61% | $27,034 | ||||||||||||||||||||||||||||||||
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 |
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 | $14.91 | (0.01) | 0.07 | 0.06 | (0.02) | — | (0.02) | $14.95 | 0.41% | 1.34% | 1.34% | 0.22% | 0.22% | 61% | $588 | ||||||||||||||||||||||||||||||||
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 | —(3) | 2.44 | 2.44 | (0.03) | — | (0.03) | $14.28 | 20.66% | 1.49% | 1.49% | (0.12)% | (0.12)% | 96% | $822 | ||||||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | $14.29 | (0.08) | 0.02 | (0.06) | — | — | — | $14.23 | (0.35)% | 2.09% | 2.09% | (0.53)% | (0.53)% | 61% | $36 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | $14.74 | —(3) | 0.01 | 0.01 | — | — | — | $14.75 | 0.20% | 1.59% | 1.59% | (0.03)% | (0.03)% | 61% | $766 | ||||||||||||||||||||||||||||||||
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 | —(3) | — | —(3) | $14.22 | 20.36% | 1.74% | 1.74% | (0.37)% | (0.37)% | 96% | $468 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations*: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | $15.34 | 0.13 | 0.02 | 0.15 | (0.11) | — | (0.11) | $15.38 | 0.99% | 0.74% | 0.74% | 0.82% | 0.82% | 61% | $7,799 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | $15.71 | 0.24 | 0.03 | 0.27 | (0.22) | — | (0.22) | $15.76 | 1.81% | 0.00%(4) | 0.74% | 1.56% | 0.82% | 61% | $37,128 | ||||||||||||||||||||||||||||||||
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(5) | $12.94 | 0.12 | 1.45 | 1.57 | — | — | — | $14.51 | 12.13% | 0.01%(6) | 0.89%(6) | 1.29%(6) | 0.41%(6) | 96%(7) | $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)Per-share amount was less than $0.005.
(4)Ratio was less than 0.005%.
(5)April 1, 2019 (commencement of sale) through November 30, 2019.
(6)Annualized.
(7)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(s) of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of a fund in relation to income earned and/or fluctuations in the fair value of a fund's investments.
See Notes to Financial Statements.
Report of Independent Registered Public Accounting Firm |
To the Shareholders of the Focused International Growth Fund and the Board of Directors of American Century World Mutual Funds, Inc.
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Focused International Growth Fund (the “Fund”), one of the funds constituting the American Century World Mutual Funds, Inc., as of November 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Focused International Growth Fund of the American Century World Mutual Funds, Inc. as of November 30, 2023, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Kansas City, Missouri
January 17, 2024
We have served as the auditor of one or more American Century investment companies since 1997.
26
Management |
The Board of Directors
The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire on December 31 of the year in which they reach their 75th birthday.
Jonathan S. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Brian Bulatao (1964) | Director | Since 2022 | Chief Administrative Officer, Activision Blizzard, Inc. (2021 to present); Under Secretary of State for Management, U.S. Department of State (2018 to 2021); Chief Operating Officer, Central Intelligence Agency (2017 to 2018) | 65 | None | ||||||||||||
Thomas W. Bunn (1953) | Director | Since 2017 | Retired | 65 | None | ||||||||||||
Chris H. Cheesman (1962) | Director | Since 2019 | Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018) | 65 | Alleghany Corporation (2021 to 2022) | ||||||||||||
Barry Fink (1955) | Director | Since 2012 (independent since 2016) | Retired | 65 | None | ||||||||||||
Rajesh K. Gupta (1960) | Director | Since 2019 | Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019) | 65 | None |
27
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Lynn Jenkins (1963) | Director | Since 2019 | Consultant, LJ Strategies (2019 to present); United States Representative, U.S. House of Representatives (2009 to 2018) | 65 | MGP Ingredients, Inc. (2019 to 2021) | ||||||||||||
Jan M. Lewis (1957) | Director and Board Chair | Since 2011 (Board Chair since 2022) | Retired | 65 | None | ||||||||||||
Gary C. Meltzer (1963) | Director | Since 2022 | Advisor, Pontoro (2021 to present); Executive Advisor, Consultant and Investor, Harris Ariel Advisory LLC (2020 to present); Managing Partner, PricewaterhouseCoopers LLP (1985 to 2020) | 65 | ExcelFin Acquisition Corp., Apollo Realty Income Solutions, Inc. | ||||||||||||
Stephen E. Yates(1) (1948) | Director | Since 2012 | Retired | 118 | None | ||||||||||||
Interested Director | |||||||||||||||||
Jonathan S. Thomas (1963) | Director | Since 2007 | President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Director, ACC and other ACC subsidiaries | 150 | None |
(1) Effective December 31, 2023, Steven E. Yates retired from the Board of Directors.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.
28
Officers
The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for each of the 16 investment companies in the American Century family of funds. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Offices with the Funds | Principal Occupation(s) During the Past Five Years | ||||||
Patrick Bannigan (1965) | President since 2019 | Executive Vice President and Director, ACC (2012 to present); Chief Financial Officer, Chief Accounting Officer and Treasurer, ACC (2015 to present). Also serves as President, ACS; Vice President, ACIM; Chief Financial Officer, Chief Accounting Officer and/or Director, ACIM, ACS and other ACC subsidiaries | ||||||
R. Wes Campbell (1974) | Chief Financial Officer and Treasurer since 2018; Vice President since 2023 | Vice President, ACS, (2020 to present); Investment Operations and Investment Accounting, ACS (2000 to present) | ||||||
Amy D. Shelton (1964) | Chief Compliance Officer and Vice President since 2014 | Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present). Also serves as Vice President, ACIS | ||||||
John Pak (1968) | General Counsel and Senior Vice President since 2021 | General Counsel and Senior Vice President, ACC (2021 to present). Also serves as General Counsel and Senior Vice President, ACIM, ACS and ACIS. Chief Legal Officer of Investment and Wealth Management, The Bank of New York Mellon (2014 to 2021) | ||||||
Cihan Kasikara (1974) | Vice President since 2023 | Senior Vice President, ACS (2022 to present); Treasurer, ACS (2023 to present); Vice President, ACS (2020 to 2022); Vice President, Franklin Templeton (2015 to 2020) | ||||||
Kathleen Gunja Nelson (1976) | Vice President since 2023 | Vice President, ACS (2017 to present) | ||||||
Ward D. Stauffer (1960) | Secretary since 2005 | Attorney, ACC (2003 to present) |
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Approval of Management Agreement |
At a meeting held on June 28, 2023, the Fund’s Board of Directors (the "Board") unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under the Investment Company Act of 1940 (the “Investment Company Act”), contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s Directors, including a majority of the independent Directors.
Prior to its consideration of the renewal of the management agreement, the Directors requested and reviewed data and information compiled by the Advisor and certain independent data providers concerning the Fund. This review was in addition to the oversight and evaluation undertaken by the Board and its committees on a continual basis and the information received was supplemental to the information that the Board and its committees receive and consider over time.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor and its affiliates included, but was not limited to
•the nature, extent, and quality of investment management, shareholder services, distribution services, and other services provided to the Fund;
•the wide range of programs and services the Advisor and other service providers provide to the Fund and its shareholders on a routine and non-routine basis;
•the Fund’s investment performance compared to appropriate benchmarks and/or peer groups of other mutual funds with similar investment objectives and strategies;
•the cost of owning the Fund compared to the cost of owning similarly-managed funds;
•the Advisor’s compliance policies, procedures, and regulatory experience and those of certain other service providers;
•the Advisor’s strategic plans, generally, and with respect to areas of heightened regulatory interest in the mutual fund industry and certain recent geopolitical and other issues;
•the Advisor’s business continuity plans, vendor management practices, and information security practices;
•the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the Advisor’s financial results of operation;
•possible economies of scale associated with the Advisor’s management of the Fund;
•any collateral benefits derived by the Advisor from the management of the Fund;
•fees and expenses associated with any investment by the Fund in other funds;
•payments to intermediaries by the Fund and the Advisor and services provided by intermediaries in connection therewith; and
•services provided and charges to the Advisor's other investment management clients.
The Board held two meetings to consider the renewal. The independent Directors also met in private session multiple times to review and discuss the information provided in response to their request. The independent Directors held active discussions with the Advisor regarding the renewal of the management agreement, requesting supplemental information, and reviewing information provided by the Advisor in response thereto. The independent Directors had the benefit of the advice of their independent counsel throughout the process.
Factors Considered
The Directors considered all of the information provided by the Advisor, the independent data providers, and independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Directors did not identify any single factor as being all-important or controlling, and each Director may have attributed different levels of importance to different factors.
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In deciding to renew the management agreement, the Board based its decision on a number of factors, including without limitation the following:
Nature, Extent and Quality of Services — Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that the Advisor provides or arranges at its own expense a wide variety of services which include, without limitation, the following:
•constructing and designing the Fund
•portfolio research and security selection
•initial capitalization/funding
•securities trading
•Fund administration
•custody of Fund assets
•daily valuation of the Fund’s portfolio
•liquidity monitoring and management
•risk management, including information security
•shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications
•legal services (except the independent Directors’ counsel)
•regulatory and portfolio compliance
•financial reporting
•marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans)
The Board noted that many of these services have expanded over time in terms of both quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and principal investment strategies. Further, the Directors recognize that the Advisor has an obligation to monitor trading activities, and in particular to seek the best execution of fund trades, and to evaluate the use of and payment for research. In providing these services, the Advisor utilizes teams of investment professionals who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Fund Performance Review Committee, provides oversight of the investment performance process. It regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Directors also review investment performance information during the management agreement renewal process. If performance concerns are identified, the Board discusses with the Advisor the reasons for such results and any actions being taken to improve performance and may conduct special reviews until performance improves. The Fund’s performance was above its benchmark for the three- and five-year periods and below its benchmark for the one-year period reviewed by the Board. In relation to industry peers, the Fund was above the median of its peer performance universe as identified by a third-party service provider for the five-year period and below the median for the one- and three-year periods. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
Shareholder and Other Services. Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through its various committees, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction, technology support (including information security), new products and services offered to Fund shareholders, securities trading activities,
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portfolio valuation services, auditing services, and legal and operational compliance activities. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund (pre- and post-distribution), and its financial results of operation. The Directors have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the terms of the current management agreement. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is sharing economies of scale, to the extent they exist, through its fee structure, and through reinvestment in its business, infrastructure, investment capabilities and initiatives to provide shareholders enhanced and expanded content and services.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage and other transaction fees and expenses relating to acquisition and disposition of portfolio securities, acquired fund fees and expenses, taxes, interest, extraordinary expenses, fund litigation expenses, fees and expenses of the Fund’s independent Directors (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Investment Company Act Rule 12b-1. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider comparing the Fund’s unified fee to the total expense ratios of its peers. The unified fee charged to shareholders of the Fund was below the median of the total expense ratios of the Fund’s peer expense universe. In addition, the Board reviewed the Fund’s position relative to the narrower set of its expense group peers. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
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Payments to Intermediaries. The Directors also requested and received a description of payments made to intermediaries by the Fund and the Advisor and services provided in response thereto. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund. The Directors reviewed such information and received representations from the Advisor that all such payments by the Fund were made pursuant to the Fund's Rule 12b-1 Plan and that all such payments by the Advisor were made from the Advisor’s resources and reasonable profits.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the possible existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. They concluded that the Advisor’s primary business is managing funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. To the extent there are potential collateral benefits, the Board has been advised and has taken this into consideration in its review of the management contract with the Fund. The Board noted that additional assets from other clients may offer the Advisor some benefit from increased leverage with prospective clients, service providers, and counterparties. Additionally, the Advisor may receive proprietary research from broker-dealers that execute fund portfolio transactions, which the Board concluded is likely to benefit other clients of the Advisor, as well as Fund shareholders. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board concluded that appropriate allocation methodologies had been employed to assign resources and the cost of those resources to these other clients.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Directors. As a result of this process, the Board, including all of the independent Directors, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and received over time, determined that the terms of the management agreement are fair and reasonable and that the management fee charged to the Fund is reasonable in light of the services provided and that the management agreement between the Fund and the Advisor should be renewed for an additional one-year period.
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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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Other Tax Information
The following information is provided pursuant to provisions of the Internal Revenue Code.
The fund hereby designates up to the maximum amount allowable as qualified dividend income for the fiscal year ended November 30, 2023.
For the fiscal year ended November 30, 2023, the fund intends to pass through to shareholders foreign source income of $1,066,324 and foreign taxes paid of $82,734, or up to the maximum amount allowable, as a foreign tax credit. Foreign source income and foreign tax expense per outstanding share on November 30, 2023 are $0.1895 and $0.0147, respectively.
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Notes |
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Contact Us | americancentury.com | |||||||
Automated Information Line | 1-800-345-8765 | |||||||
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |||||||
Investors Using Advisors | 1-800-378-9878 | |||||||
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |||||||
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |||||||
Telecommunications Relay Service for the Deaf | 711 | |||||||
American Century World Mutual Funds, Inc. | ||||||||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||||||||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||||||||
©2024 American Century Proprietary Holdings, Inc. All rights reserved. CL-ANN-91034 2401 |
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Annual Report | |||||
November 30, 2023 | |||||
Global Small Cap Fund | |||||
Investor Class (AGCVX) | |||||
I Class (AGCSX) | |||||
A Class (AGCLX) | |||||
C Class (AGCHX) | |||||
R Class (AGCWX) | |||||
R6 Class (AGCTX) |
The Securities and Exchange Commission (SEC) adopted new rules that will require annual and semiannual reports to transition to a new format known as a Tailored Shareholder Report beginning in July 2024. The amendments will require the transmission of a concise report highlighting key fund information to investors. The detailed financial statements will remain available on our website, will be delivered to investors free of charge upon request, and will continue to be filed with the SEC.
Table of Contents |
President’s Letter | |||||
Performance | |||||
Portfolio Commentary | |||||
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 | |||||
Report of Independent Registered Public Accounting Firm | |||||
Management | |||||
Approval of Management Agreement | |||||
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 |
![jthomasrev0514a14.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/jthomasrev0514a14.jpg)
Dear Investor:
Thank you for reviewing this annual report for the period ending November 30, 2023. Annual reports help convey important information about fund returns, including market factors that affect performance. For additional investment insights, please visit americancentury.com.
Stocks Rallied Amid Persistent Volatility
Despite ongoing challenges from a variety of sources, global stocks broadly delivered solid gains for the 12-month period. Amid persistent inflation, central banks continued to raise interest rates through much of the fiscal year. Additionally, banking industry turmoil, economic uncertainty and geopolitical unrest added to the volatile backdrop.
Overall, investor expectations for central banks to conclude their rate-hike campaigns fueled optimism. In the first half of the period, inflation’s steady slowdown, a series of bank failures and mounting recession worries prompted investors to regularly recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to lift interest rates through the third quarter of 2023.
By period-end, most central banks had paused their tightening campaigns alongside slower inflation rates and weakening growth data. While many observers believed the pauses indicated an end to the long-standing rate-hike programs, still-above-target inflation prompted policymakers to leave their options open. Nevertheless, financial markets rallied late in the period, convinced central banks would pivot to rate cuts in 2024.
In addition, corporate earnings generally remained better than expected, which also aided stock returns. Overall, most broad global stock indices delivered double-digit gains for the period. Growth stocks were particularly strong and significantly outperformed their value-stock peers. However, among small-cap stocks, the value style outperformed. Emerging markets stocks advanced but notably lagged their developed markets counterparts.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of persistent inflation, tighter financial conditions and recession risk. In addition, the Israel-Hamas war complicates the global backdrop and represents another key consideration for our investment teams.
Our firm has a long history of helping clients weather unpredictable and volatile markets, and we’re determined to meet today’s challenges. Thank you for your trust and confidence in American Century Investments.
With appreciation and respect,
![image48a16a.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image48a16a.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Performance |
Total Returns as of November 30, 2023 | ||||||||||||||||||||
Average Annual Returns | ||||||||||||||||||||
Ticker Symbol | 1 year | 5 years | Since Inception | Inception Date | ||||||||||||||||
Investor Class | AGCVX | -2.18% | 9.05% | 10.95% | 3/29/16 | |||||||||||||||
MSCI ACWI Small Cap Index | — | 3.95% | 6.09% | 7.52% | — | |||||||||||||||
I Class | AGCSX | -1.96% | 9.27% | 11.18% | 3/29/16 | |||||||||||||||
A Class | AGCLX | 3/29/16 | ||||||||||||||||||
No sales charge | -2.46% | 8.77% | 10.67% | |||||||||||||||||
With sales charge | -8.07% | 7.49% | 9.82% | |||||||||||||||||
C Class | AGCHX | -3.16% | 7.95% | 9.84% | 3/29/16 | |||||||||||||||
R Class | AGCWX | -2.70% | 8.49% | 10.40% | 3/29/16 | |||||||||||||||
R6 Class | AGCTX | -1.80% | 9.43% | 11.34% | 3/29/16 |
Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
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Growth of $10,000 Over Life of Class | ||
$10,000 investment made March 29, 2016 | ||
Performance for other share classes will vary due to differences in fee structure. |
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Value on November 30, 2023 | |||||
Investor Class — $22,202 | |||||
MSCI ACWI Small Cap Index — $17,452 | |||||
Total Annual Fund Operating Expenses | |||||||||||||||||
Investor Class | I Class | A Class | C Class | R Class | R6 Class | ||||||||||||
1.11% | 0.91% | 1.36% | 2.11% | 1.61% | 0.76% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
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Portfolio Commentary |
Portfolio Managers: Trevor Gurwich and Federico Laffan
Performance Summary
Global Small Cap returned -2.18%* for the 12-month period ended November 30, 2023, underperforming its benchmark, the MSCI ACWI Small Cap Index, which returned 3.95%.
Portfolio Review
Global small-capitalization (small-cap) equities delivered positive returns despite periods of volatility, with small-cap stocks lagging large caps in both the U.S. and non-U.S. markets. Equity markets during the period were heavily impacted by the direction and outlook for interest rates globally as opposed to company fundamentals. In the short term, macro-driven markets tend to be challenging for our bottom-up approach focused on identifying companies with accelerating and sustainable earnings growth.
Professional Services Company Was a Key Detractor
Stock selection in the industrials sector hindered relative performance, due in part to an investment in WNS Holdings. The stock declined on worries that the professional services company may face competitive challenges from artificial intelligence (AI). We believe these concerns were overstated, as WNS is already incorporating predictive AI to enhance its business offerings.
In the health care sector, relative performance was dampened by a position in Harmony Biosciences Holdings, a pharmaceuticals company that specializes in treatments for rare neurological conditions. It faced uncertainty because of the departure of its chief executive officer and a short sellers report. We exited our investment. Inmode, another detractor, provides minimally invasive surgeries. Its business slowed as a weaker economic environment and higher financing costs reduced near-term demand for elective medical procedures.
Automotive services company Driven Brands Holdings was another laggard. The stock declined as economic headwinds hurt consumer demand for carwashes and its windshield replacement business struggled, and we sold our stake in the company.
Real Estate Was an Area of Strength
Stock selection in the real estate sector aided relative performance, due in part to resilient demand trends for residential real estate investment trusts investments such as in Boardwalk Real Estate Investment Trust. Stock selection in the energy sector also contributed. Oil field services company Weatherford International, a top sector performer, experienced strong revenue growth from its drilling and evaluation businesses.
Several consumer-facing stocks were also positive contributors. Sporting goods company Asics reported record sales and healthy earnings growth. Cosmetic company e.l.f. Beauty, another contributor, delivered revenue growth that significantly outpaced that of the overall U.S. skincare market. These results were helped by product innovations and a social media-driven marketing campaign that targeted younger consumers.
*All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the fund’s benchmark, other share classes may not. See page 3 for returns for all share classes.
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Fund Characteristics |
NOVEMBER 30, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 98.9% | ||||
Exchange-Traded Funds | 0.5% | ||||
Short-Term Investments | 1.4% | ||||
Other Assets and Liabilities | (0.8)% | ||||
Top Five Countries* | % of net assets | ||||
United States | 49.2% | ||||
Canada | 9.8% | ||||
Japan | 9.1% | ||||
Germany | 4.5% | ||||
United Kingdom | 4.2% |
*Exposure indicated excludes Exchange-Traded Funds. The Schedule of Investments provides additional information on the fund's portfolio holdings.
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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 June 1, 2023 to November 30, 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.
7
Beginning Account Value 6/1/23 | Ending Account Value 11/30/23 | Expenses Paid During Period(1) 6/1/23 - 11/30/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,028.00 | $5.64 | 1.11% | ||||||||||
I Class | $1,000 | $1,029.60 | $4.63 | 0.91% | ||||||||||
A Class | $1,000 | $1,026.50 | $6.91 | 1.36% | ||||||||||
C Class | $1,000 | $1,022.70 | $10.70 | 2.11% | ||||||||||
R Class | $1,000 | $1,025.10 | $8.17 | 1.61% | ||||||||||
R6 Class | $1,000 | $1,030.50 | $3.87 | 0.76% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,019.50 | $5.62 | 1.11% | ||||||||||
I Class | $1,000 | $1,020.51 | $4.61 | 0.91% | ||||||||||
A Class | $1,000 | $1,018.25 | $6.88 | 1.36% | ||||||||||
C Class | $1,000 | $1,014.49 | $10.66 | 2.11% | ||||||||||
R Class | $1,000 | $1,017.00 | $8.14 | 1.61% | ||||||||||
R6 Class | $1,000 | $1,021.26 | $3.85 | 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 183, 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.
8
Schedule of Investments |
NOVEMBER 30, 2023
Shares | Value | |||||||
COMMON STOCKS — 98.9% | ||||||||
Australia — 1.3% | ||||||||
CAR Group Ltd. | 45,458 | $ | 835,328 | |||||
Pinnacle Investment Management Group Ltd. | 30,082 | 174,786 | ||||||
1,010,114 | ||||||||
Belgium — 0.6% | ||||||||
D'ieteren Group | 2,870 | 490,425 | ||||||
Brazil — 1.2% | ||||||||
Direcional Engenharia SA | 94,200 | 382,385 | ||||||
TOTVS SA | 80,100 | 539,148 | ||||||
921,533 | ||||||||
Canada — 9.8% | ||||||||
ATS Corp.(1) | 13,539 | 531,542 | ||||||
Boardwalk Real Estate Investment Trust | 18,305 | 900,850 | ||||||
Brookfield Infrastructure Corp., Class A | 17,021 | 528,672 | ||||||
Capstone Copper Corp.(1)(2) | 191,589 | 785,022 | ||||||
Celestica, Inc.(1) | 17,666 | 476,275 | ||||||
Docebo, Inc.(1) | 9,023 | 401,894 | ||||||
Element Fleet Management Corp. | 52,001 | 837,718 | ||||||
FirstService Corp.(2) | 6,623 | 1,039,317 | ||||||
Kinaxis, Inc.(1) | 4,381 | 487,513 | ||||||
Precision Drilling Corp.(1) | 4,375 | 253,063 | ||||||
Stantec, Inc. | 18,947 | 1,411,932 | ||||||
7,653,798 | ||||||||
China — 0.4% | ||||||||
Tongcheng Travel Holdings Ltd.(1) | 188,400 | 346,349 | ||||||
France — 2.4% | ||||||||
Gaztransport Et Technigaz SA | 4,106 | 553,846 | ||||||
SPIE SA | 21,098 | 617,797 | ||||||
Technip Energies NV | 29,925 | 698,026 | ||||||
1,869,669 | ||||||||
Germany — 4.5% | ||||||||
AIXTRON SE(2) | 17,629 | 641,994 | ||||||
CTS Eventim AG & Co. KGaA | 11,915 | 817,303 | ||||||
Hugo Boss AG | 11,475 | 804,294 | ||||||
KION Group AG | 15,515 | 565,786 | ||||||
Redcare Pharmacy NV(1) | 4,875 | 688,089 | ||||||
3,517,466 | ||||||||
Greece — 0.4% | ||||||||
JUMBO SA | 10,725 | 280,946 | ||||||
Hong Kong — 1.6% | ||||||||
Samsonite International SA(1) | 435,600 | 1,270,455 | ||||||
India — 0.9% | ||||||||
KEI Industries Ltd. | 16,118 | 557,183 | ||||||
WNS Holdings Ltd., ADR(1) | 1,979 | 117,711 | ||||||
674,894 | ||||||||
Ireland — 0.6% | ||||||||
AIB Group PLC | 100,102 | 464,128 |
9
Shares | Value | |||||||
Israel — 2.8% | ||||||||
CyberArk Software Ltd.(1) | 5,158 | $ | 1,027,835 | |||||
Inmode Ltd.(1) | 17,168 | 407,740 | ||||||
Nova Ltd.(1) | 5,695 | 732,434 | ||||||
2,168,009 | ||||||||
Italy — 1.9% | ||||||||
BPER Banca | 345,379 | 1,292,316 | ||||||
Interpump Group SpA | 4,146 | 193,177 | ||||||
1,485,493 | ||||||||
Japan — 9.1% | ||||||||
Asics Corp. | 37,900 | 1,358,279 | ||||||
Invincible Investment Corp. | 1,436 | 581,538 | ||||||
Japan Airport Terminal Co. Ltd. | 9,600 | 421,116 | ||||||
JMDC, Inc.(2) | 8,700 | 253,072 | ||||||
MatsukiyoCocokara & Co. | 30,400 | 525,180 | ||||||
Mebuki Financial Group, Inc. | 285,600 | 861,687 | ||||||
Money Forward, Inc.(1) | 20,000 | 611,798 | ||||||
Nippon Gas Co. Ltd. | 30,900 | 467,036 | ||||||
Ryohin Keikaku Co. Ltd. | 65,300 | 1,032,079 | ||||||
Socionext, Inc. | 1,200 | 107,293 | ||||||
TechnoPro Holdings, Inc. | 21,900 | 509,333 | ||||||
Yamazaki Baking Co. Ltd. | 18,500 | 404,910 | ||||||
7,133,321 | ||||||||
Mexico — 0.8% | ||||||||
Corp. Inmobiliaria Vesta SAB de CV(2) | 160,589 | 605,335 | ||||||
Norway — 0.7% | ||||||||
Aker Solutions ASA | 138,756 | 524,011 | ||||||
South Korea — 0.5% | ||||||||
JYP Entertainment Corp. | 5,290 | 392,800 | ||||||
Spain — 1.3% | ||||||||
CIE Automotive SA | 8,671 | 244,912 | ||||||
Sacyr SA | 234,388 | 787,381 | ||||||
1,032,293 | ||||||||
Sweden — 2.0% | ||||||||
Fortnox AB | 82,184 | 437,164 | ||||||
Thule Group AB | 18,248 | 447,861 | ||||||
Trelleborg AB, B Shares | 20,484 | 635,789 | ||||||
1,520,814 | ||||||||
Taiwan — 2.7% | ||||||||
Airtac International Group | 16,000 | 555,721 | ||||||
Lotes Co. Ltd. | 20,000 | 593,377 | ||||||
Poya International Co. Ltd. | 29,300 | 478,907 | ||||||
Wiwynn Corp. | 9,000 | 504,967 | ||||||
2,132,972 | ||||||||
United Kingdom — 4.2% | ||||||||
Games Workshop Group PLC | 3,071 | 416,074 | ||||||
Howden Joinery Group PLC | 42,296 | 392,303 | ||||||
Indivior PLC(1) | 9,583 | 156,024 | ||||||
Intermediate Capital Group PLC | 56,585 | 1,121,600 | ||||||
Rotork PLC | 123,829 | 483,659 | ||||||
Tritax Big Box REIT PLC | 367,225 | 712,356 | ||||||
3,282,016 |
10
Shares | Value | |||||||
United States — 49.2% | ||||||||
ADMA Biologics, Inc.(1) | 123,972 | $ | 458,696 | |||||
Alphatec Holdings, Inc.(1) | 38,877 | 461,470 | ||||||
Antero Resources Corp.(1) | 26,674 | 630,307 | ||||||
ATI, Inc.(1) | 17,343 | 762,225 | ||||||
AZEK Co., Inc.(1) | 27,246 | 939,714 | ||||||
Bancorp, Inc.(1) | 20,619 | 804,347 | ||||||
BellRing Brands, Inc.(1) | 14,368 | 760,067 | ||||||
Clean Harbors, Inc.(1) | 4,264 | 689,318 | ||||||
Commerce Bancshares, Inc. | 8,594 | 434,599 | ||||||
Commercial Metals Co. | 8,104 | 367,354 | ||||||
Construction Partners, Inc., Class A(1) | 13,633 | 572,041 | ||||||
Credo Technology Group Holding Ltd.(1) | 21,400 | 383,274 | ||||||
Donnelley Financial Solutions, Inc.(1) | 8,749 | 516,366 | ||||||
DoubleVerify Holdings, Inc.(1) | 23,883 | 792,916 | ||||||
elf Beauty, Inc.(1) | 3,445 | 406,820 | ||||||
Ensign Group, Inc. | 3,619 | 387,486 | ||||||
Eventbrite, Inc., Class A(1) | 36,784 | 259,327 | ||||||
Evercore, Inc., Class A | 6,362 | 938,713 | ||||||
Evolent Health, Inc., Class A(1) | 13,055 | 362,929 | ||||||
Five9, Inc.(1) | 5,153 | 392,762 | ||||||
FormFactor, Inc.(1) | 11,079 | 416,349 | ||||||
Freshpet, Inc.(1) | 6,253 | 443,650 | ||||||
FTI Consulting, Inc.(1) | 3,217 | 709,220 | ||||||
Guidewire Software, Inc.(1) | 10,174 | 1,016,790 | ||||||
GXO Logistics, Inc.(1) | 12,811 | 720,747 | ||||||
Hamilton Lane, Inc., Class A | 5,268 | 515,474 | ||||||
Hayward Holdings, Inc.(1) | 34,000 | 400,860 | ||||||
HealthEquity, Inc.(1) | 8,770 | 587,765 | ||||||
Huron Consulting Group, Inc.(1) | 9,868 | 1,027,950 | ||||||
Inter Parfums, Inc. | 3,013 | 377,107 | ||||||
J & J Snack Foods Corp. | 2,446 | 402,489 | ||||||
Jabil, Inc. | 1,217 | 140,344 | ||||||
Kinsale Capital Group, Inc. | 3,290 | 1,151,829 | ||||||
Klaviyo, Inc., Class A(1) | 3,667 | 108,653 | ||||||
Knight-Swift Transportation Holdings, Inc. | 11,147 | 599,486 | ||||||
MACOM Technology Solutions Holdings, Inc.(1) | 5,969 | 501,277 | ||||||
Manhattan Associates, Inc.(1) | 3,393 | 756,809 | ||||||
MGP Ingredients, Inc. | 4,208 | 359,574 | ||||||
Modine Manufacturing Co.(1) | 11,222 | 552,122 | ||||||
Natera, Inc.(1) | 9,711 | 543,330 | ||||||
Newmark Group, Inc., Class A | 67,532 | 555,788 | ||||||
NEXTracker, Inc., Class A(1) | 10,045 | 408,229 | ||||||
NOW, Inc.(1) | 55,931 | 557,632 | ||||||
Ollie's Bargain Outlet Holdings, Inc.(1) | 10,808 | 791,902 | ||||||
Onto Innovation, Inc.(1) | 6,221 | 877,223 | ||||||
Pure Storage, Inc., Class A(1) | 12,045 | 401,219 | ||||||
R1 RCM, Inc.(1) | 34,771 | 367,877 | ||||||
RadNet, Inc.(1) | 28,146 | 935,292 | ||||||
RLI Corp. | 6,444 | 873,806 | ||||||
Ryman Hospitality Properties, Inc. | 10,940 | 1,097,829 | ||||||
Savers Value Village, Inc.(1) | 27,993 | 421,295 |
11
Shares | Value | |||||||
Shift4 Payments, Inc., Class A(1) | 8,142 | $ | 535,906 | |||||
Sigma Lithium Corp.(1) | 12,543 | 376,165 | ||||||
SPS Commerce, Inc.(1) | 4,440 | 764,923 | ||||||
Summit Materials, Inc., Class A(1) | 23,292 | 807,999 | ||||||
Surgery Partners, Inc.(1) | 8,196 | 268,419 | ||||||
Tenable Holdings, Inc.(1) | 20,079 | 831,070 | ||||||
Terreno Realty Corp. | 10,926 | 623,984 | ||||||
Toll Brothers, Inc. | 11,270 | 967,980 | ||||||
TransMedics Group, Inc.(1) | 3,872 | 293,033 | ||||||
Transocean Ltd.(1) | 58,671 | 373,148 | ||||||
UFP Technologies, Inc.(1) | 954 | 158,803 | ||||||
Wayfair, Inc., Class A(1) | 9,406 | 524,855 | ||||||
Weatherford International PLC(1) | 8,383 | 760,254 | ||||||
Wingstop, Inc. | 2,947 | 708,341 | ||||||
Wintrust Financial Corp. | 6,046 | 517,961 | ||||||
38,453,489 | ||||||||
TOTAL COMMON STOCKS (Cost $65,875,159) | 77,230,330 | |||||||
EXCHANGE-TRADED FUNDS — 0.5% | ||||||||
Schwab International Small-Cap Equity ETF | 5,823 | 194,779 | ||||||
Schwab US Small-Cap ETF(2) | 4,646 | 197,223 | ||||||
TOTAL EXCHANGE-TRADED FUNDS (Cost $385,783) | 392,002 | |||||||
SHORT-TERM INVESTMENTS — 1.4% | ||||||||
Money Market Funds — 1.1% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 904 | 904 | ||||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) | 839,439 | 839,439 | ||||||
840,343 | ||||||||
Repurchase Agreements — 0.3% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.625%, 7/31/29, valued at $30,397), in a joint trading account at 5.30%, dated 11/30/23, due 12/1/23 (Delivery value $29,793) | 29,789 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.875%, 4/15/29, valued at $231,580), at 5.30%, dated 11/30/23, due 12/1/23 (Delivery value $227,033) | 227,000 | |||||||
256,789 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $1,097,132) | 1,097,132 | |||||||
TOTAL INVESTMENT SECURITIES — 100.8% (Cost $67,358,074) | 78,719,464 | |||||||
OTHER ASSETS AND LIABILITIES — (0.8)% | (615,585) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 78,103,879 |
12
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Industrials | 19.5% | ||||
Information Technology | 17.9% | ||||
Consumer Discretionary | 14.7% | ||||
Financials | 13.1% | ||||
Real Estate | 7.8% | ||||
Health Care | 7.2% | ||||
Consumer Staples | 5.6% | ||||
Energy | 4.9% | ||||
Materials | 4.0% | ||||
Communication Services | 2.9% | ||||
Utilities | 1.3% | ||||
Exchange-Traded Funds | 0.5% | ||||
Short-Term Investments | 1.4% | ||||
Other Assets and Liabilities | (0.8)% |
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
ADR | – | American Depositary Receipt |
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $2,362,687. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $2,451,968, which includes securities collateral of $1,612,529.
See Notes to Financial Statements.
13
Statement of Assets and Liabilities |
NOVEMBER 30, 2023 | |||||
Assets | |||||
Investment securities, at value (cost of $66,518,635) — including $2,362,687 of securities on loan | $ | 77,880,025 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $839,439) | 839,439 | ||||
Total investment securities, at value (cost of $67,358,074) | 78,719,464 | ||||
Foreign currency holdings, at value (cost of $15) | 15 | ||||
Receivable for investments sold | 1,283,737 | ||||
Receivable for capital shares sold | 118,049 | ||||
Dividends and interest receivable | 52,701 | ||||
Securities lending receivable | 2,015 | ||||
Other assets | 1,412 | ||||
80,177,393 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 839,439 | ||||
Payable for investments purchased | 1,054,080 | ||||
Payable for capital shares redeemed | 118,156 | ||||
Accrued management fees | 60,256 | ||||
Distribution and service fees payable | 1,583 | ||||
2,073,514 | |||||
Net Assets | $ | 78,103,879 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 86,576,195 | |||
Distributable earnings (loss) | (8,472,316) | ||||
$ | 78,103,879 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $34,727,338 | 2,200,979 | $15.78 | ||||||||
I Class, $0.01 Par Value | $19,627,698 | 1,225,333 | $16.02 | ||||||||
A Class, $0.01 Par Value | $3,787,443 | 244,621 | $15.48 | ||||||||
C Class, $0.01 Par Value | $398,392 | 27,640 | $14.41 | ||||||||
R Class, $0.01 Par Value | $1,228,371 | 81,226 | $15.12 | ||||||||
R6 Class, $0.01 Par Value | $18,334,637 | 1,132,073 | $16.20 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except A Class, for which the maximum offering price per share was $16.42 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of A Class and C Class.
See Notes to Financial Statements.
14
Statement of Operations |
YEAR ENDED NOVEMBER 30, 2023 | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $77,776) | $ | 888,647 | |||
Securities lending, net | 39,296 | ||||
Interest | 37,995 | ||||
965,938 | |||||
Expenses: | |||||
Management fees | 827,181 | ||||
Distribution and service fees: | |||||
A Class | 8,589 | ||||
C Class | 5,140 | ||||
R Class | 8,507 | ||||
Directors' fees and expenses | 2,908 | ||||
Other expenses | 5,430 | ||||
857,755 | |||||
Net investment income (loss) | 108,183 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | (6,122,037) | ||||
Foreign currency translation transactions | 6,805 | ||||
(6,115,232) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 4,445,002 | ||||
Translation of assets and liabilities in foreign currencies | (1,889) | ||||
4,443,113 | |||||
Net realized and unrealized gain (loss) | (1,672,119) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (1,563,936) |
See Notes to Financial Statements.
15
Statement of Changes in Net Assets |
YEARS ENDED NOVEMBER 30, 2023 AND NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | November 30, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 108,183 | $ | 191,405 | ||||
Net realized gain (loss) | (6,115,232) | (12,817,895) | ||||||
Change in net unrealized appreciation (depreciation) | 4,443,113 | (6,760,098) | ||||||
Net increase (decrease) in net assets resulting from operations | (1,563,936) | (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) | (1,610,437) | 40,304,064 | ||||||
Net increase (decrease) in net assets | (3,453,610) | 10,342,797 | ||||||
Net Assets | ||||||||
Beginning of period | 81,557,489 | 71,214,692 | ||||||
End of period | $ | 78,103,879 | $ | 81,557,489 |
See Notes to Financial Statements.
16
Notes to Financial Statements |
NOVEMBER 30, 2023
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.
17
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.
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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 November 30, 2023.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 692,689 | — | — | — | $ | 692,689 | ||||||||||
Exchange-Traded Funds | 146,750 | — | — | — | 146,750 | ||||||||||||
Total Borrowings | $ | 839,439 | — | — | — | $ | 839,439 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 839,439 |
(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% |
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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 November 30, 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.
Other Expenses — A fund’s other expenses may include interest charges, clearing exchange fees, proxy solicitation expenses, fees associated with the recovery of foreign tax reclaims and other miscellaneous expenses.
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 November 30, 2023 were $108,922,470 and $108,930,438, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Year ended November 30, 2023 | Year ended November 30, 2022 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||
Sold | 453,528 | $ | 7,259,926 | 1,143,311 | $ | 20,740,907 | ||||||||
Issued in reinvestment of distributions | 5,811 | 91,465 | 290,679 | 6,086,815 | ||||||||||
Redeemed | (686,681) | (10,844,446) | (683,057) | (11,937,507) | ||||||||||
(227,342) | (3,493,055) | 750,933 | 14,890,215 | |||||||||||
I Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 286,831 | 4,658,833 | 1,327,532 | 23,040,596 | ||||||||||
Issued in reinvestment of distributions | 6,164 | 98,318 | 80,309 | 1,703,359 | ||||||||||
Redeemed | (630,237) | (9,983,116) | (283,305) | (4,921,367) | ||||||||||
(337,242) | (5,225,965) | 1,124,536 | 19,822,588 | |||||||||||
A Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 340,447 | 5,173,279 | 9,891 | 152,577 | ||||||||||
Issued in reinvestment of distributions | — | — | 2,209 | 45,507 | ||||||||||
Redeemed | (119,735) | (1,941,925) | (1,086) | (22,533) | ||||||||||
220,712 | 3,231,354 | 11,014 | 175,551 | |||||||||||
C Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 12,380 | 179,782 | 30,786 | 466,443 | ||||||||||
Issued in reinvestment of distributions | — | — | 1,378 | 26,824 | ||||||||||
Redeemed | (11,051) | (157,882) | (13,445) | (200,836) | ||||||||||
1,329 | 21,900 | 18,719 | 292,431 | |||||||||||
R Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 34,731 | 535,463 | 47,236 | 800,325 | ||||||||||
Issued in reinvestment of distributions | — | — | 14,060 | 284,298 | ||||||||||
Redeemed | (68,861) | (1,005,678) | (26,072) | (459,635) | ||||||||||
(34,130) | (470,215) | 35,224 | 624,988 | |||||||||||
R6 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 590,570 | 9,415,393 | 330,061 | 5,851,718 | ||||||||||
Issued in reinvestment of distributions | 5,476 | 88,224 | 109,716 | 2,350,107 | ||||||||||
Redeemed | (313,436) | (5,178,073) | (212,858) | (3,703,534) | ||||||||||
282,610 | 4,325,544 | 226,919 | 4,498,291 | |||||||||||
Net increase (decrease) | (94,063) | $ | (1,610,437) | 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 | — | $ | 1,010,114 | — | |||||||
Belgium | — | 490,425 | — | ||||||||
Brazil | — | 921,533 | — | ||||||||
Canada | $ | 1,536,489 | 6,117,309 | — | |||||||
China | — | 346,349 | — | ||||||||
France | — | 1,869,669 | — | ||||||||
Germany | — | 3,517,466 | — | ||||||||
Greece | — | 280,946 | — | ||||||||
Hong Kong | — | 1,270,455 | — | ||||||||
India | 117,711 | 557,183 | — | ||||||||
Ireland | — | 464,128 | — | ||||||||
Italy | — | 1,485,493 | — | ||||||||
Japan | — | 7,133,321 | — | ||||||||
Mexico | — | 605,335 | — | ||||||||
Norway | — | 524,011 | — | ||||||||
South Korea | — | 392,800 | — | ||||||||
Spain | — | 1,032,293 | — | ||||||||
Sweden | — | 1,520,814 | — | ||||||||
Taiwan | — | 2,132,972 | — | ||||||||
United Kingdom | — | 3,282,016 | — | ||||||||
Other Countries | 40,621,498 | — | — | ||||||||
Exchange-Traded Funds | 392,002 | — | — | ||||||||
Short-Term Investments | 840,343 | 256,789 | — | ||||||||
$ | 43,508,043 | $ | 35,211,421 | — |
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 tax character of distributions paid during the years ended November 30, 2023 and November 30, 2022 were as follows:
2023 | 2022 | |||||||
Distributions Paid From | ||||||||
Ordinary income | $ | 279,237 | $ | 4,916,344 | ||||
Long-term capital gains | — | $ | 5,658,335 |
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 federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments | $ | 69,396,991 | |||
Gross tax appreciation of investments | $ | 11,220,724 | |||
Gross tax depreciation of investments | (1,898,251) | ||||
Net tax appreciation (depreciation) of investments | 9,322,473 | ||||
Net tax appreciation (depreciation) on translation of assets and liabilities in foreign currencies | (266) | ||||
Net tax appreciation (depreciation) | $ | 9,322,207 | |||
Undistributed ordinary income | $ | 530,437 | |||
Accumulated short-term capital losses | $ | (18,324,960) |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
Accumulated capital losses 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 | $16.17 | 0.01 | (0.36) | (0.35) | (0.04) | — | (0.04) | $15.78 | (2.18)% | 1.11% | 0.03% | 130% | $34,727 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $16.41 | 0.04 | (0.36) | (0.32) | (0.07) | — | (0.07) | $16.02 | (1.96)% | 0.91% | 0.23% | 130% | $19,628 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
A Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $15.87 | (0.04) | (0.35) | (0.39) | — | — | — | $15.48 | (2.46)% | 1.36% | (0.22)% | 130% | $3,787 | ||||||||||||||||||||||||||||
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 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations*: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $14.88 | (0.14) | (0.33) | (0.47) | — | — | — | $14.41 | (3.16)% | 2.11% | (0.97)% | 130% | $398 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $15.54 | (0.07) | (0.35) | (0.42) | — | — | — | $15.12 | (2.70)% | 1.61% | (0.47)% | 130% | $1,228 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $16.59 | 0.06 | (0.36) | (0.30) | (0.09) | — | (0.09) | $16.20 | (1.80)% | 0.76% | 0.38% | 130% | $18,335 | ||||||||||||||||||||||||||||
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 | —(3) | 2.47 | 2.47 | — | (0.23) | (0.23) | $16.03 | 18.34% | 1.16% | (0.04)% | 161% | $207 |
Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)Per-share amount was less than $0.005.
*The amount shown for a share outstanding throughout the period may not correlate with the Statement(s) of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of a fund in relation to income earned and/or fluctuations in the fair value of a fund's investments.
See Notes to Financial Statements.
Report of Independent Registered Public Accounting Firm |
To the Shareholders of the Global Small Cap Fund and the Board of Directors of American Century World Mutual Funds, Inc.
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Global Small Cap Fund (the “Fund”), one of the funds constituting the American Century World Mutual Funds, Inc., as of November 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Global Small Cap Fund of the American Century World Mutual Funds, Inc. as of November 30, 2023, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Kansas City, Missouri
January 17, 2024
We have served as the auditor of one or more American Century investment companies since 1997.
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Management |
The Board of Directors
The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire on December 31 of the year in which they reach their 75th birthday.
Jonathan S. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Brian Bulatao (1964) | Director | Since 2022 | Chief Administrative Officer, Activision Blizzard, Inc. (2021 to present); Under Secretary of State for Management, U.S. Department of State (2018 to 2021); Chief Operating Officer, Central Intelligence Agency (2017 to 2018) | 65 | None | ||||||||||||
Thomas W. Bunn (1953) | Director | Since 2017 | Retired | 65 | None | ||||||||||||
Chris H. Cheesman (1962) | Director | Since 2019 | Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018) | 65 | Alleghany Corporation (2021 to 2022) | ||||||||||||
Barry Fink (1955) | Director | Since 2012 (independent since 2016) | Retired | 65 | None | ||||||||||||
Rajesh K. Gupta (1960) | Director | Since 2019 | Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019) | 65 | None |
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Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Lynn Jenkins (1963) | Director | Since 2019 | Consultant, LJ Strategies (2019 to present); United States Representative, U.S. House of Representatives (2009 to 2018) | 65 | MGP Ingredients, Inc. (2019 to 2021) | ||||||||||||
Jan M. Lewis (1957) | Director and Board Chair | Since 2011 (Board Chair since 2022) | Retired | 65 | None | ||||||||||||
Gary C. Meltzer (1963) | Director | Since 2022 | Advisor, Pontoro (2021 to present); Executive Advisor, Consultant and Investor, Harris Ariel Advisory LLC (2020 to present); Managing Partner, PricewaterhouseCoopers LLP (1985 to 2020) | 65 | ExcelFin Acquisition Corp., Apollo Realty Income Solutions, Inc. | ||||||||||||
Stephen E. Yates(1) (1948) | Director | Since 2012 | Retired | 118 | None | ||||||||||||
Interested Director | |||||||||||||||||
Jonathan S. Thomas (1963) | Director | Since 2007 | President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Director, ACC and other ACC subsidiaries | 150 | None |
(1) Effective December 31, 2023, Steven E. Yates retired from the Board of Directors.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.
29
Officers
The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for each of the 16 investment companies in the American Century family of funds. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Offices with the Funds | Principal Occupation(s) During the Past Five Years | ||||||
Patrick Bannigan (1965) | President since 2019 | Executive Vice President and Director, ACC (2012 to present); Chief Financial Officer, Chief Accounting Officer and Treasurer, ACC (2015 to present). Also serves as President, ACS; Vice President, ACIM; Chief Financial Officer, Chief Accounting Officer and/or Director, ACIM, ACS and other ACC subsidiaries | ||||||
R. Wes Campbell (1974) | Chief Financial Officer and Treasurer since 2018; Vice President since 2023 | Vice President, ACS, (2020 to present); Investment Operations and Investment Accounting, ACS (2000 to present) | ||||||
Amy D. Shelton (1964) | Chief Compliance Officer and Vice President since 2014 | Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present). Also serves as Vice President, ACIS | ||||||
John Pak (1968) | General Counsel and Senior Vice President since 2021 | General Counsel and Senior Vice President, ACC (2021 to present). Also serves as General Counsel and Senior Vice President, ACIM, ACS and ACIS. Chief Legal Officer of Investment and Wealth Management, The Bank of New York Mellon (2014 to 2021) | ||||||
Cihan Kasikara (1974) | Vice President since 2023 | Senior Vice President, ACS (2022 to present); Treasurer, ACS (2023 to present); Vice President, ACS (2020 to 2022); Vice President, Franklin Templeton (2015 to 2020) | ||||||
Kathleen Gunja Nelson (1976) | Vice President since 2023 | Vice President, ACS (2017 to present) | ||||||
Ward D. Stauffer (1960) | Secretary since 2005 | Attorney, ACC (2003 to present) |
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Approval of Management Agreement |
At a meeting held on June 28, 2023, the Fund’s Board of Directors (the "Board") unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under the Investment Company Act of 1940 (the “Investment Company Act”), contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s Directors, including a majority of the independent Directors.
Prior to its consideration of the renewal of the management agreement, the Directors requested and reviewed data and information compiled by the Advisor and certain independent data providers concerning the Fund. This review was in addition to the oversight and evaluation undertaken by the Board and its committees on a continual basis and the information received was supplemental to the information that the Board and its committees receive and consider over time.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor and its affiliates included, but was not limited to
•the nature, extent, and quality of investment management, shareholder services, distribution services, and other services provided to the Fund;
•the wide range of programs and services the Advisor and other service providers provide to the Fund and its shareholders on a routine and non-routine basis;
•the Fund’s investment performance compared to appropriate benchmarks and/or peer groups of other mutual funds with similar investment objectives and strategies;
•the cost of owning the Fund compared to the cost of owning similarly-managed funds;
•the Advisor’s compliance policies, procedures, and regulatory experience and those of certain other service providers;
•the Advisor’s strategic plans, generally, and with respect to areas of heightened regulatory interest in the mutual fund industry and certain recent geopolitical and other issues;
•the Advisor’s business continuity plans, vendor management practices, and information security practices;
•the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the Advisor’s financial results of operation;
•possible economies of scale associated with the Advisor’s management of the Fund;
•any collateral benefits derived by the Advisor from the management of the Fund;
•fees and expenses associated with any investment by the Fund in other funds;
•payments to intermediaries by the Fund and the Advisor and services provided by intermediaries in connection therewith; and
•services provided and charges to the Advisor's other investment management clients.
The Board held two meetings to consider the renewal. The independent Directors also met in private session multiple times to review and discuss the information provided in response to their request. The independent Directors held active discussions with the Advisor regarding the renewal of the management agreement, requesting supplemental information, and reviewing information provided by the Advisor in response thereto. The independent Directors had the benefit of the advice of their independent counsel throughout the process.
Factors Considered
The Directors considered all of the information provided by the Advisor, the independent data providers, and independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Directors did not identify any single factor as being all-important or controlling, and each Director may have attributed different levels of importance to different factors.
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In deciding to renew the management agreement, the Board based its decision on a number of factors, including without limitation the following:
Nature, Extent and Quality of Services — Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that the Advisor provides or arranges at its own expense a wide variety of services which include, without limitation, the following:
•constructing and designing the Fund
•portfolio research and security selection
•initial capitalization/funding
•securities trading
•Fund administration
•custody of Fund assets
•daily valuation of the Fund’s portfolio
•liquidity monitoring and management
•risk management, including information security
•shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications
•legal services (except the independent Directors’ counsel)
•regulatory and portfolio compliance
•financial reporting
•marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans)
The Board noted that many of these services have expanded over time in terms of both quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and principal investment strategies. Further, the Directors recognize that the Advisor has an obligation to monitor trading activities, and in particular to seek the best execution of fund trades, and to evaluate the use of and payment for research. In providing these services, the Advisor utilizes teams of investment professionals who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Fund Performance Review Committee, provides oversight of the investment performance process. It regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Directors also review investment performance information during the management agreement renewal process. If performance concerns are identified, the Board discusses with the Advisor the reasons for such results and any actions being taken to improve performance and may conduct special reviews until performance improves. The Fund’s performance was above its benchmark for the three- and five-year periods and below its benchmark for the one-year period reviewed by the Board. In relation to industry peers, the Fund was above the median of its peer performance universe as identified by a third-party service provider for the three- and five-year periods and below the median for the one-year period. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
Shareholder and Other Services. Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through its various committees, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction, technology support (including information security), new products and services offered to Fund shareholders, securities trading activities,
32
portfolio valuation services, auditing services, and legal and operational compliance activities. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund (pre- and post-distribution), and its financial results of operation. The Directors have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the terms of the current management agreement. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is sharing economies of scale, to the extent they exist, through its fee structure, and through reinvestment in its business, infrastructure, investment capabilities and initiatives to provide shareholders enhanced and expanded content and services.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage and other transaction fees and expenses relating to acquisition and disposition of portfolio securities, acquired fund fees and expenses, taxes, interest, extraordinary expenses, fund litigation expenses, fees and expenses of the Fund’s independent Directors (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Investment Company Act Rule 12b-1. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider comparing the Fund’s unified fee to the total expense ratios of its peers. The unified fee charged to shareholders of the Fund was below the median of the total expense ratios of the Fund’s peer expense universe. In addition, the Board reviewed the Fund’s position relative to the narrower set of its expense group peers. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
33
Payments to Intermediaries. The Directors also requested and received a description of payments made to intermediaries by the Fund and the Advisor and services provided in response thereto. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund. The Directors reviewed such information and received representations from the Advisor that all such payments by the Fund were made pursuant to the Fund's Rule 12b-1 Plan and that all such payments by the Advisor were made from the Advisor’s resources and reasonable profits.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the possible existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. They concluded that the Advisor’s primary business is managing funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. To the extent there are potential collateral benefits, the Board has been advised and has taken this into consideration in its review of the management contract with the Fund. The Board noted that additional assets from other clients may offer the Advisor some benefit from increased leverage with prospective clients, service providers, and counterparties. Additionally, the Advisor may receive proprietary research from broker-dealers that execute fund portfolio transactions, which the Board concluded is likely to benefit other clients of the Advisor, as well as Fund shareholders. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board concluded that appropriate allocation methodologies had been employed to assign resources and the cost of those resources to these other clients.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Directors. As a result of this process, the Board, including all of the independent Directors, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and received over time, determined that the terms of the management agreement are fair and reasonable and that the management fee charged to the Fund is reasonable in light of the services provided and that the management agreement between the Fund and the Advisor should be renewed for an additional one-year period.
34
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.
35
Other Tax Information
The following information is provided pursuant to provisions of the Internal Revenue Code.
The fund hereby designates up to the maximum amount allowable as qualified dividend income for the fiscal year ended November 30, 2023.
For corporate taxpayers, the fund hereby designates $272,266, or up to the maximum amount allowable, of ordinary income distributions paid during the fiscal year ended November 30, 2023 as qualified for the corporate dividends received deduction.
For the fiscal year ended November 30, 2023, the fund intends to pass through to shareholders foreign source income of $496,327 and foreign taxes paid of $44,374, or up to the maximum amount allowable, as a foreign tax credit. Foreign source income and foreign tax expense per outstanding share on November 30, 2023 are $0.1010 and $0.0090, respectively.
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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. | ||||||||
©2024 American Century Proprietary Holdings, Inc. All rights reserved. CL-ANN-91035 2401 |
![image5.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image5.jpg)
Annual Report | |||||
November 30, 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) |
The Securities and Exchange Commission (SEC) adopted new rules that will require annual and semiannual reports to transition to a new format known as a Tailored Shareholder Report beginning in July 2024. The amendments will require the transmission of a concise report highlighting key fund information to investors. The detailed financial statements will remain available on our website, will be delivered to investors free of charge upon request, and will continue to be filed with the SEC.
Table of Contents |
President’s Letter | |||||
Performance | |||||
Portfolio Commentary | |||||
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 | |||||
Report of Independent Registered Public Accounting Firm | |||||
Management | |||||
Approval of Management Agreement | |||||
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 |
![jthomasrev0514a14.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/jthomasrev0514a14.jpg)
Dear Investor:
Thank you for reviewing this annual report for the period ending November 30, 2023. Annual reports help convey important information about fund returns, including market factors that affect performance. For additional investment insights, please visit americancentury.com.
Stocks Rallied Amid Persistent Volatility
Despite ongoing challenges from a variety of sources, global stocks broadly delivered solid gains for the 12-month period. Amid persistent inflation, central banks continued to raise interest rates through much of the fiscal year. Additionally, banking industry turmoil, economic uncertainty and geopolitical unrest added to the volatile backdrop.
Overall, investor expectations for central banks to conclude their rate-hike campaigns fueled optimism. In the first half of the period, inflation’s steady slowdown, a series of bank failures and mounting recession worries prompted investors to regularly recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to lift interest rates through the third quarter of 2023.
By period-end, most central banks had paused their tightening campaigns alongside slower inflation rates and weakening growth data. While many observers believed the pauses indicated an end to the long-standing rate-hike programs, still-above-target inflation prompted policymakers to leave their options open. Nevertheless, financial markets rallied late in the period, convinced central banks would pivot to rate cuts in 2024.
In addition, corporate earnings generally remained better than expected, which also aided stock returns. Overall, most broad global stock indices delivered double-digit gains for the period. Growth stocks were particularly strong and significantly outperformed their value-stock peers. However, among small-cap stocks, the value style outperformed. Emerging markets stocks advanced but notably lagged their developed markets counterparts.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of persistent inflation, tighter financial conditions and recession risk. In addition, the Israel-Hamas war complicates the global backdrop and represents another key consideration for our investment teams.
Our firm has a long history of helping clients weather unpredictable and volatile markets, and we’re determined to meet today’s challenges. Thank you for your trust and confidence in American Century Investments.
With appreciation and respect,
![image48a16a.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image48a16a.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Performance |
Total Returns as of November 30, 2023 | ||||||||||||||||||||
Average Annual Returns | ||||||||||||||||||||
Ticker Symbol | 1 year | 5 years | 10 years | Since Inception | Inception Date | |||||||||||||||
Investor Class | TWIEX | 3.68% | 5.73% | 3.60% | — | 5/9/91 | ||||||||||||||
MSCI EAFE Index | — | 12.36% | 5.99% | 3.89% | — | — | ||||||||||||||
MSCI EAFE Growth Index | — | 9.96% | 6.54% | 4.74% | — | — | ||||||||||||||
I Class | TGRIX | 3.90% | 5.94% | 3.80% | — | 11/20/97 | ||||||||||||||
Y Class | ATYGX | 4.08% | 6.10% | — | 5.93% | 4/10/17 | ||||||||||||||
A Class | TWGAX | 10/2/96 | ||||||||||||||||||
No sales charge | 3.49% | 5.47% | 3.33% | — | ||||||||||||||||
With sales charge | -2.47% | 4.23% | 2.72% | — | ||||||||||||||||
C Class | AIWCX | 2.67% | 4.67% | 2.56% | — | 6/4/01 | ||||||||||||||
R Class | ATGRX | 3.19% | 5.19% | 3.07% | — | 8/29/03 | ||||||||||||||
R5 Class | ATGGX | 3.99% | 5.94% | — | 5.77% | 4/10/17 | ||||||||||||||
R6 Class | ATGDX | 3.99% | 6.09% | 3.95% | — | 7/26/13 | ||||||||||||||
G Class | ACAEX | 5.05% | — | — | -3.98% | 4/1/22 |
Average annual returns since inception are presented when ten years of performance history is not available.
G Class returns would have been lower if a portion of the fees had not been waived.
C Class shares will automatically convert to A Class shares after being held for approximately eight years. C Class average annual returns do not reflect this conversion.
Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
3
Growth of $10,000 Over 10 Years | ||
$10,000 investment made November 30, 2013 | ||
Performance for other share classes will vary due to differences in fee structure. |
![chart-a07466aa9e8d4cdd8d9a.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/chart-a07466aa9e8d4cdd8d9a.jpg)
Value on November 30, 2023 | |||||
Investor Class — $14,241 | |||||
MSCI EAFE Index — $14,653 | |||||
MSCI EAFE Growth Index — $15,884 | |||||
Total Annual Fund Operating Expenses | ||||||||||||||||||||||||||
Investor Class | I Class | Y Class | A Class | C Class | R Class | R5 Class | R6 Class | G Class | ||||||||||||||||||
1.36% | 1.16% | 1.01% | 1.61% | 2.36% | 1.86% | 1.16% | 1.01% | 1.01% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
4
Portfolio Commentary |
Portfolio Managers: Raj Gandhi and Jim Zhao
Performance Summary
International Growth returned 3.68%* for the fiscal year ended November 30, 2023, underperforming its benchmark, the MSCI EAFE Index, which returned 12.36%. The fund’s return reflects operating expenses, while the index’s return does not.
Higher interest rates cooled inflation in many non-U.S. developed economies as supply chains normalized and energy costs were mostly lower during the period. Despite low sentiment and recession expectations, the consumer remained reasonably strong particularly in demand for services as labor markets held up and wage growth continued. Later in the period, tighter financial conditions led to slower economic growth as consumption decelerated, manufacturing activity weakened and companies reduced inventory. Earnings growth slowed, but companies continued to beat expectations as consensus estimates assumed a hard landing recession, which did not materialize.
Monetary Policy Expectations Brought Volatility and Economic Growth Slowed
Among financials sector holdings, Adyen detracted most from performance as the Netherlands-based payments company’s stock dropped significantly after it issued an unexpected profit warning in September and gave downward guidance for the year. We sold the position. Hong Kong-based insurance company, AIA Group, also weighed on performance after the company’s stock sold off with the broader Chinese market in November despite a strong quarterly earnings report and positive outlook from management. Positioning among banks was also a source of weakness in the sector.
Within the industrials sector, Japanese e-commerce industrial supplier, MonotaRO, hindered performance mostly due to investor concerns that trends had fallen short of guidance for the year. The company reported decreased sales volume, which the chief executive officer (CEO) attributed to slower new customer acquisitions, lower sales of COVID-19-related products and less demand due to price increases. We exited the position.
Chinese sporting goods company Li Ning was also a notable detractor. Investors worried about the potential for a period of promotions and discounts, and management announced plans to expand investment in its smart factory as it pivots from outsourcing to self-production. We sold the position. Other notable detractors included Lonza Group and CSL. Lonza experienced a decline in demand and lower revenue growth, and the company’s CEO abruptly announced his departure at the end of September. CSL, an Australian specialty biotechnology company, adjusted guidance for the year due to slower-than-expected margin growth in its plasma business.
On the upside, the top individual contributor to performance was Denmark-based pharmaceuticals company Novo Nordisk. Outperformance has primarily been driven by the success of the company’s popular weight-loss drugs, Ozempic and Wegovy. Ferrari also added to returns as the luxury sports car manufacturer announced strong performance through the period, and it completed stock buybacks. French industrial gas supplier, Air Liquide, also performed well through multiple upgrades and earnings increases.
*All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the fund’s benchmark, other share classes may not. See page 3 for returns for all share classes.
5
Fund Characteristics |
NOVEMBER 30, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 99.5% | ||||
Short-Term Investments | 0.5% | ||||
Other Assets and Liabilities | —* | ||||
*Category is less than 0.05% of total net assets. | |||||
Top Five Countries | % of net assets | ||||
United Kingdom | 16.9% | ||||
France | 16.6% | ||||
Japan | 16.1% | ||||
Germany | 7.7% | ||||
Switzerland | 6.5% |
6
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 June 1, 2023 to November 30, 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.
7
Beginning Account Value 6/1/23 | Ending Account Value 11/30/23 | Expenses Paid During Period(1) 6/1/23 - 11/30/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $978.00 | $6.25 | 1.26% | ||||||||||
I Class | $1,000 | $979.50 | $5.26 | 1.06% | ||||||||||
Y Class | $1,000 | $980.40 | $4.52 | 0.91% | ||||||||||
A Class | $1,000 | $977.20 | $7.48 | 1.51% | ||||||||||
C Class | $1,000 | $972.90 | $11.18 | 2.26% | ||||||||||
R Class | $1,000 | $975.70 | $8.72 | 1.76% | ||||||||||
R5 Class | $1,000 | $979.50 | $5.26 | 1.06% | ||||||||||
R6 Class | $1,000 | $979.50 | $4.52 | 0.91% | ||||||||||
G Class | $1,000 | $984.00 | $0.10 | 0.02% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,018.75 | $6.38 | 1.26% | ||||||||||
I Class | $1,000 | $1,019.75 | $5.37 | 1.06% | ||||||||||
Y Class | $1,000 | $1,020.51 | $4.61 | 0.91% | ||||||||||
A Class | $1,000 | $1,017.50 | $7.64 | 1.51% | ||||||||||
C Class | $1,000 | $1,013.74 | $11.41 | 2.26% | ||||||||||
R Class | $1,000 | $1,016.24 | $8.90 | 1.76% | ||||||||||
R5 Class | $1,000 | $1,019.75 | $5.37 | 1.06% | ||||||||||
R6 Class | $1,000 | $1,020.51 | $4.61 | 0.91% | ||||||||||
G Class | $1,000 | $1,024.97 | $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 183, 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.
8
Schedule of Investments |
NOVEMBER 30, 2023
Shares | Value | |||||||
COMMON STOCKS — 99.5% | ||||||||
Australia — 3.2% | ||||||||
CSL Ltd. | 213,210 | $ | 36,993,360 | |||||
James Hardie Industries PLC(1) | 667,590 | 21,319,103 | ||||||
NEXTDC Ltd.(1) | 3,435,650 | 29,501,589 | ||||||
87,814,052 | ||||||||
Canada — 3.6% | ||||||||
Canadian Pacific Kansas City Ltd. | 439,620 | 31,649,271 | ||||||
Element Fleet Management Corp. | 1,130,270 | 18,208,263 | ||||||
GFL Environmental, Inc. | 866,826 | 24,877,906 | ||||||
Intact Financial Corp. | 72,290 | 11,203,498 | ||||||
Shopify, Inc., Class A(1) | 206,060 | 15,010,893 | ||||||
100,949,831 | ||||||||
China — 1.0% | ||||||||
H World Group Ltd., ADR(1) | 434,740 | 15,902,789 | ||||||
Tencent Holdings Ltd. | 296,600 | 12,356,103 | ||||||
28,258,892 | ||||||||
Denmark — 5.4% | ||||||||
DSV A/S | 74,440 | 11,199,229 | ||||||
Novo Nordisk AS, Class B | 1,360,876 | 139,033,373 | ||||||
150,232,602 | ||||||||
France — 16.6% | ||||||||
Air Liquide SA | 381,822 | 72,385,886 | ||||||
Airbus SE | 259,480 | 38,562,060 | ||||||
Arkema SA | 273,670 | 27,847,946 | ||||||
Edenred SE | 631,527 | 34,397,443 | ||||||
EssilorLuxottica SA | 74,160 | 14,160,646 | ||||||
Hermes International SCA | 12,710 | 26,341,645 | ||||||
L'Oreal SA | 90,080 | 42,327,796 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 93,900 | 71,859,738 | ||||||
Pernod Ricard SA | 120,230 | 20,770,981 | ||||||
Publicis Groupe SA | 199,180 | 16,832,072 | ||||||
Safran SA | 188,050 | 33,064,303 | ||||||
Schneider Electric SE | 220,537 | 40,590,421 | ||||||
Thales SA | 127,420 | 19,040,067 | ||||||
458,181,004 | ||||||||
Germany — 7.7% | ||||||||
adidas AG | 95,430 | 19,976,702 | ||||||
Hugo Boss AG | 419,680 | 29,415,789 | ||||||
Infineon Technologies AG | 1,167,111 | 45,032,459 | ||||||
Puma SE | 370,910 | 23,955,417 | ||||||
SAP SE | 360,840 | 57,399,059 | ||||||
Symrise AG | 337,240 | 37,960,246 | ||||||
213,739,672 | ||||||||
Hong Kong — 2.6% | ||||||||
AIA Group Ltd. | 6,595,800 | 56,704,924 | ||||||
Techtronic Industries Co. Ltd. | 1,593,500 | 16,189,814 | ||||||
72,894,738 |
9
Shares | Value | |||||||
India — 0.7% | ||||||||
HDFC Bank Ltd. | 969,500 | $ | 18,175,600 | |||||
Indonesia — 0.7% | ||||||||
Bank Central Asia Tbk PT | 33,853,900 | 19,594,073 | ||||||
Ireland — 3.3% | ||||||||
Bank of Ireland Group PLC | 1,971,610 | 18,459,761 | ||||||
ICON PLC(1) | 139,180 | 37,152,709 | ||||||
Kerry Group PLC, A Shares | 436,250 | 35,309,506 | ||||||
90,921,976 | ||||||||
Italy — 3.1% | ||||||||
Ferrari NV | 183,240 | 66,035,583 | ||||||
Prysmian SpA | 495,590 | 19,116,706 | ||||||
85,152,289 | ||||||||
Japan — 16.1% | ||||||||
BayCurrent Consulting, Inc. | 1,240,600 | 41,630,258 | ||||||
Denso Corp. | 1,127,400 | 17,693,112 | ||||||
Fast Retailing Co. Ltd. | 154,700 | 39,300,948 | ||||||
Hoya Corp. | 272,000 | 30,593,577 | ||||||
Keyence Corp. | 134,200 | 57,466,508 | ||||||
Kobe Bussan Co. Ltd. | 1,035,600 | 27,231,065 | ||||||
Mitsubishi Electric Corp. | 1,088,400 | 14,743,415 | ||||||
Mitsubishi Heavy Industries Ltd. | 461,600 | 25,932,490 | ||||||
Murata Manufacturing Co. Ltd. | 1,538,500 | 29,896,463 | ||||||
Obic Co. Ltd. | 166,200 | 25,427,694 | ||||||
Pan Pacific International Holdings Corp. | 1,264,200 | 27,388,172 | ||||||
Panasonic Holdings Corp. | 1,887,800 | 19,452,090 | ||||||
Seven & i Holdings Co. Ltd. | 213,300 | 8,190,125 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 891,800 | 43,874,287 | ||||||
Terumo Corp. | 1,098,700 | 35,078,731 | ||||||
443,898,935 | ||||||||
Netherlands — 6.2% | ||||||||
ASML Holding NV | 134,460 | 91,638,055 | ||||||
DSM-Firmenich AG | 361,569 | 34,165,974 | ||||||
Heineken NV | 284,600 | 26,053,165 | ||||||
Universal Music Group NV | 745,370 | 19,693,424 | ||||||
171,550,618 | ||||||||
Norway — 1.4% | ||||||||
Seadrill Ltd.(1) | 870,590 | 38,636,784 | ||||||
Spain — 2.7% | ||||||||
Cellnex Telecom SA | 1,052,686 | 40,190,026 | ||||||
Grifols SA(1) | 1,136,310 | 16,086,104 | ||||||
Iberdrola SA | 1,379,502 | 17,049,254 | ||||||
73,325,384 | ||||||||
Sweden — 0.7% | ||||||||
Epiroc AB, A Shares | 1,038,740 | 19,373,213 | ||||||
Switzerland — 6.5% | ||||||||
Alcon, Inc. | 549,169 | 41,423,630 | ||||||
Lonza Group AG | 19,570 | 7,575,954 | ||||||
On Holding AG, Class A(1) | 1,080,440 | 31,343,564 | ||||||
Partners Group Holding AG | 11,930 | 15,729,592 | ||||||
Sika AG | 134,369 | 36,514,651 | ||||||
UBS Group AG | 886,470 | 25,049,503 |
10
Shares | Value | |||||||
Zurich Insurance Group AG | 44,410 | $ | 22,250,130 | |||||
179,887,024 | ||||||||
Taiwan — 1.1% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,645,000 | 30,090,536 | ||||||
United Kingdom — 16.9% | ||||||||
ARM Holdings PLC, ADR(1) | 264,932 | 16,293,318 | ||||||
Ashtead Group PLC | 331,450 | 20,027,860 | ||||||
AstraZeneca PLC | 628,790 | 80,929,238 | ||||||
BP PLC | 4,718,850 | 28,689,024 | ||||||
Compass Group PLC | 1,108,030 | 28,051,353 | ||||||
CRH PLC | 523,470 | 32,847,743 | ||||||
Haleon PLC | 9,241,401 | 38,717,432 | ||||||
Halma PLC | 520,300 | 14,041,645 | ||||||
HSBC Holdings PLC(2) | 3,569,600 | 27,155,444 | ||||||
London Stock Exchange Group PLC | 559,615 | 63,087,223 | ||||||
Melrose Industries PLC | 4,285,876 | 28,138,715 | ||||||
RELX PLC | 1,200,010 | 46,179,711 | ||||||
Segro PLC | 2,385,630 | 24,531,971 | ||||||
Whitbread PLC | 484,886 | 18,958,816 | ||||||
467,649,493 | ||||||||
TOTAL COMMON STOCKS (Cost $2,228,488,538) | 2,750,326,716 | |||||||
SHORT-TERM INVESTMENTS — 0.5% | ||||||||
Money Market Funds† | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 28,775 | 28,775 | ||||||
Repurchase Agreements — 0.5% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.625%, 7/31/29, valued at $1,680,365), in a joint trading account at 5.30%, dated 11/30/23, due 12/1/23 (Delivery value $1,647,033) | 1,646,791 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.875%, 4/15/29, valued at $12,821,540), at 5.30%, dated 11/30/23, due 12/1/23 (Delivery value $12,571,851) | 12,570,000 | |||||||
14,216,791 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $14,245,566) | 14,245,566 | |||||||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $2,242,734,104) | 2,764,572,282 | |||||||
OTHER ASSETS AND LIABILITIES† | 505,504 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 2,765,077,786 |
11
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Industrials | 16.2% | ||||
Health Care | 15.9% | ||||
Consumer Discretionary | 15.8% | ||||
Information Technology | 14.9% | ||||
Financials | 12.9% | ||||
Materials | 9.5% | ||||
Consumer Staples | 7.2% | ||||
Communication Services | 3.2% | ||||
Energy | 2.4% | ||||
Real Estate | 0.9% | ||||
Utilities | 0.6% | ||||
Short-Term Investments | 0.5% | ||||
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 $13,695,150. 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. At the period end, the aggregate value of the collateral held by the fund was $14,409,877, all of which is securities collateral.
See Notes to Financial Statements.
12
Statement of Assets and Liabilities |
NOVEMBER 30, 2023 | |||||
Assets | |||||
Investment securities, at value (cost of $2,242,734,104) — including $13,695,150 of securities on loan | $ | 2,764,572,282 | |||
Foreign currency holdings, at value (cost of $361,022) | 358,696 | ||||
Receivable for investments sold | 21,291,256 | ||||
Receivable for capital shares sold | 558,665 | ||||
Dividends and interest receivable | 8,339,859 | ||||
Securities lending receivable | 4,951 | ||||
Other assets | 67,421 | ||||
2,795,193,130 | |||||
Liabilities | |||||
Payable for investments purchased | 23,266,477 | ||||
Payable for capital shares redeemed | 1,377,323 | ||||
Accrued management fees | 1,208,738 | ||||
Distribution and service fees payable | 15,941 | ||||
Accrued foreign taxes | 660,448 | ||||
Accrued IRS compliance fees | 3,373,730 | ||||
Accrued other expenses | 212,687 | ||||
30,115,344 | |||||
Net Assets | $ | 2,765,077,786 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 2,461,570,938 | |||
Distributable earnings (loss) | 303,506,848 | ||||
$ | 2,765,077,786 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $859,014,290 | 74,455,053 | $11.54 | ||||||||
I Class, $0.01 Par Value | $271,586,343 | 23,701,537 | $11.46 | ||||||||
Y Class, $0.01 Par Value | $49,522,739 | 4,311,666 | $11.49 | ||||||||
A Class, $0.01 Par Value | $64,930,255 | 5,608,734 | $11.58 | ||||||||
C Class, $0.01 Par Value | $395,973 | 36,794 | $10.76 | ||||||||
R Class, $0.01 Par Value | $6,982,427 | 600,304 | $11.63 | ||||||||
R5 Class, $0.01 Par Value | $7,258 | 633 | $11.47 | ||||||||
R6 Class, $0.01 Par Value | $22,695,471 | 1,977,982 | $11.47 | ||||||||
G Class, $0.01 Par Value | $1,489,943,030 | 127,805,375 | $11.66 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except A Class, for which the maximum offering price per share was $12.29 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of A Class and C Class.
See Notes to Financial Statements.
13
Statement of Operations |
YEAR ENDED NOVEMBER 30, 2023 | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $4,193,539) | $ | 45,926,879 | |||
Interest | 1,729,824 | ||||
Securities lending, net | 196,838 | ||||
47,853,541 | |||||
Expenses: | |||||
Management fees | 28,290,744 | ||||
Distribution and service fees: | |||||
A Class | 167,120 | ||||
C Class | 5,849 | ||||
R Class | 35,651 | ||||
Directors' fees and expenses | 93,755 | ||||
Other expenses | 461,093 | ||||
29,054,212 | |||||
Fees waived - G Class | (12,541,361) | ||||
16,512,851 | |||||
Net investment income (loss) | 31,340,690 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions (net of foreign tax expenses paid (refunded) of $38,551) | (99,054,004) | ||||
Foreign currency translation transactions | (118,741) | ||||
(99,172,745) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments (includes (increase) decrease in accrued foreign taxes of $120,181) | 188,415,882 | ||||
Translation of assets and liabilities in foreign currencies | 255,907 | ||||
188,671,789 | |||||
Net realized and unrealized gain (loss) | 89,499,044 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 120,839,734 |
See Notes to Financial Statements.
14
Statement of Changes in Net Assets |
YEARS ENDED NOVEMBER 30, 2023 AND NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | November 30, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 31,340,690 | $ | 33,159,076 | ||||
Net realized gain (loss) | (99,172,745) | (146,115,792) | ||||||
Change in net unrealized appreciation (depreciation) | 188,671,789 | (291,753,184) | ||||||
Net increase (decrease) in net assets resulting from operations | 120,839,734 | (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) | (22,208,949) | 1,682,322,148 | ||||||
Net increase (decrease) in net assets | 98,630,785 | 1,061,478,126 | ||||||
Net Assets | ||||||||
Beginning of period | 2,666,447,001 | 1,604,968,875 | ||||||
End of period | $ | 2,765,077,786 | $ | 2,666,447,001 |
See Notes to Financial Statements.
15
Notes to Financial Statements |
NOVEMBER 30, 2023
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.
16
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.
17
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation's investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation's transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 33% 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.
18
The management fee schedule range and the effective annual management fee for each class for the period ended November 30, 2023 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |||||||
Investor Class | 1.050% to 1.500% | 1.24% | ||||||
I Class | 0.850% to 1.300% | 1.04% | ||||||
Y Class | 0.700% to 1.150% | 0.89% | ||||||
A Class | 1.050% to 1.500% | 1.24% | ||||||
C Class | 1.050% to 1.500% | 1.24% | ||||||
R Class | 1.050% to 1.500% | 1.24% | ||||||
R5 Class | 0.850% to 1.300% | 1.04% | ||||||
R6 Class | 0.700% to 1.150% | 0.89% | ||||||
G Class | 0.700% to 1.150% | 0.00%(1) |
(1)Effective annual management fee before waiver was 0.89%.
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 November 30, 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.
Other Expenses — A fund’s other expenses may include interest charges, clearing exchange fees, proxy solicitation expenses, fees associated with the recovery of foreign tax reclaims and other miscellaneous expenses.
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 November 30, 2023 were $1,467,173,684 and $1,473,970,275, respectively.
19
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Year ended November 30, 2023 | Year ended November 30, 2022(1) | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 1,250,000,000 | 1,250,000,000 | ||||||||||||
Sold | 5,034,273 | $ | 57,254,810 | 4,323,073 | $ | 57,881,495 | ||||||||
Issued in reinvestment of distributions | — | — | 10,709,215 | 148,931,979 | ||||||||||
Redeemed | (10,453,580) | (121,780,199) | (6,827,221) | (80,462,415) | ||||||||||
(5,419,307) | (64,525,389) | 8,205,067 | 126,351,059 | |||||||||||
I Class/Shares Authorized | 300,000,000 | 100,000,000 | ||||||||||||
Sold | 1,981,790 | 22,596,027 | 10,278,633 | 114,915,896 | ||||||||||
Issued in reinvestment of distributions | — | — | 2,767,046 | 37,841,100 | ||||||||||
Redeemed | (2,854,292) | (32,440,009) | (4,919,973) | (53,061,124) | ||||||||||
(872,502) | (9,843,982) | 8,125,706 | 99,695,872 | |||||||||||
Y Class/Shares Authorized | 40,000,000 | 30,000,000 | ||||||||||||
Sold | 903,775 | 10,364,996 | 1,952,496 | 21,490,959 | ||||||||||
Issued in reinvestment of distributions | — | — | 475,952 | 6,532,062 | ||||||||||
Redeemed | (1,209,253) | (14,166,235) | (755,783) | (8,682,704) | ||||||||||
(305,478) | (3,801,239) | 1,672,665 | 19,340,317 | |||||||||||
A Class/Shares Authorized | 80,000,000 | 80,000,000 | ||||||||||||
Sold | 422,314 | 4,870,116 | 659,237 | 7,734,678 | ||||||||||
Issued in reinvestment of distributions | — | — | 786,226 | 11,019,766 | ||||||||||
Redeemed | (799,056) | (9,293,280) | (854,500) | (10,085,631) | ||||||||||
(376,742) | (4,423,164) | 590,963 | 8,668,813 | |||||||||||
C Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||||||
Sold | 1,057 | 11,435 | 2,514 | 27,038 | ||||||||||
Issued in reinvestment of distributions | — | — | 13,035 | 172,810 | ||||||||||
Redeemed | (35,891) | (391,329) | (38,812) | (433,059) | ||||||||||
(34,834) | (379,894) | (23,263) | (233,211) | |||||||||||
R Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 179,185 | 2,093,889 | 101,947 | 1,215,287 | ||||||||||
Issued in reinvestment of distributions | — | — | 66,701 | 942,087 | ||||||||||
Redeemed | (155,230) | (1,749,459) | (55,154) | (687,335) | ||||||||||
23,955 | 344,430 | 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 | 864,536 | 9,867,063 | 1,567,955 | 17,866,224 | ||||||||||
Issued in reinvestment of distributions | — | — | 319,036 | 4,381,413 | ||||||||||
Redeemed | (1,356,933) | (15,642,883) | (1,359,516) | (14,884,276) | ||||||||||
(492,397) | (5,775,820) | 527,475 | 7,363,361 | |||||||||||
G Class/Shares Authorized | 1,500,000,000 | 1,000,000,000 | ||||||||||||
Sold | 23,293,156 | 268,627,206 | 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 | (17,441,413) | (202,431,097) | (5,688,755) | (62,017,744) | ||||||||||
5,851,743 | 66,196,109 | 121,953,632 | 1,419,664,714 | |||||||||||
Net increase (decrease) | (1,625,562) | $ | (22,208,949) | 141,165,825 | $ | 1,682,322,148 |
(1)April 1, 2022 (commencement of sale) through November 30, 2022 for the G Class.
20
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 | |||||||||||
Canada | $ | 24,877,906 | $ | 76,071,925 | — | ||||||
China | 15,902,789 | 12,356,103 | — | ||||||||
Ireland | 37,152,709 | 53,769,267 | — | ||||||||
Norway | 38,636,784 | — | — | ||||||||
Switzerland | 31,343,564 | 148,543,460 | — | ||||||||
United Kingdom | 49,141,061 | 418,508,432 | — | ||||||||
Other Countries | — | 1,844,022,716 | — | ||||||||
Short-Term Investments | 28,775 | 14,216,791 | — | ||||||||
$ | 197,083,588 | $ | 2,567,488,694 | — |
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 tax character of distributions paid during the years ended November 30, 2023 and November 30, 2022 were as follows:
2023 | 2022 | |||||||
Distributions Paid From | ||||||||
Ordinary income | — | $ | 50,775,903 | |||||
Long-term capital gains | — | $ | 165,358,219 |
21
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 federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments | $ | 2,253,243,215 | |||
Gross tax appreciation of investments | $ | 592,255,736 | |||
Gross tax depreciation of investments | (80,926,669) | ||||
Net tax appreciation (depreciation) of investments | 511,329,067 | ||||
Net tax appreciation (depreciation) on translation of assets and liabilities in foreign currencies | (584,006) | ||||
Net tax appreciation (depreciation) | $ | 510,745,061 | |||
Undistributed ordinary income | $ | 33,994,947 | |||
Accumulated short-term capital losses | $ | (220,449,315) | |||
Accumulated long-term capital losses | $ | (20,783,845) |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies.
Accumulated capital losses 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.
22
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 | $11.13 | 0.06 | 0.35 | 0.41 | — | — | — | — | $11.54 | 3.68% | 1.26% | 1.26% | 0.48% | 0.48% | 54% | $859,014 | ||||||||||||||||||||||||||||||||||
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 | —(3) | (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 | ||||||||||||||||||||||||||||||||||
I Class | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | $11.03 | 0.08 | 0.35 | 0.43 | — | — | — | — | $11.46 | 3.90% | 1.06% | 1.06% | 0.68% | 0.68% | 54% | $271,586 | ||||||||||||||||||||||||||||||||||
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 |
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 | $11.04 | 0.10 | 0.35 | 0.45 | — | — | — | — | $11.49 | 4.08% | 0.91% | 0.91% | 0.83% | 0.83% | 54% | $49,523 | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
A Class | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | $11.19 | 0.03 | 0.36 | 0.39 | — | — | — | — | $11.58 | 3.49% | 1.51% | 1.51% | 0.23% | 0.23% | 54% | $64,930 | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
C Class | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | $10.48 | (0.05) | 0.33 | 0.28 | — | — | — | — | $10.76 | 2.67% | 2.26% | 2.26% | (0.52)% | (0.52)% | 54% | $396 | ||||||||||||||||||||||||||||||||||
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 |
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) | |||||||||||||||||||||||||||||||||||
R Class | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | $11.27 | —(3) | 0.36 | 0.36 | — | — | — | — | $11.63 | 3.19% | 1.76% | 1.76% | (0.02)% | (0.02)% | 54% | $6,982 | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
R5 Class | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | $11.04 | 0.08 | 0.35 | 0.43 | — | — | — | — | $11.47 | 3.99% | 1.06% | 1.06% | 0.68% | 0.68% | 54% | $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 | ||||||||||||||||||||||||||||||||||
R6 Class | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | $11.03 | 0.09 | 0.35 | 0.44 | — | — | — | — | $11.47 | 3.99% | 0.91% | 0.91% | 0.83% | 0.83% | 54% | $22,695 | ||||||||||||||||||||||||||||||||||
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 |
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) | |||||||||||||||||||||||||||||||||||
G Class | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | $11.10 | 0.20 | 0.36 | 0.56 | — | — | — | — | $11.66 | 5.05% | 0.02% | 0.91% | 1.72% | 0.83% | 54% | $1,489,943 | ||||||||||||||||||||||||||||||||||
2022(4) | $12.81 | 0.15 | (1.54) | (1.39) | (0.29) | — | (0.03) | (0.32) | $11.10 | (11.03)% | 0.07%(5) | 0.95%(5) | 2.20%(5) | 1.32%(5) | 38%(6) | $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)Per-share amount was less than $0.005.
(4)April 1, 2022 (commencement of sale) through November 30, 2022.
(5)Annualized.
(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(s) of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of a fund in relation to income earned and/or fluctuations in the fair value of a fund's investments.
See Notes to Financial Statements.
Report of Independent Registered Public Accounting Firm |
To the Shareholders of the International Growth Fund and the Board of Directors of American Century World Mutual Funds, Inc.
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of International Growth Fund (the “Fund”), one of the funds constituting the American Century World Mutual Funds, Inc., as of November 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of International Growth Fund of the American Century World Mutual Funds, Inc. as of November 30, 2023, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Kansas City, Missouri
January 17, 2024
We have served as the auditor of one or more American Century investment companies since 1997.
27
Management |
The Board of Directors
The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire on December 31 of the year in which they reach their 75th birthday.
Jonathan S. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Brian Bulatao (1964) | Director | Since 2022 | Chief Administrative Officer, Activision Blizzard, Inc. (2021 to present); Under Secretary of State for Management, U.S. Department of State (2018 to 2021); Chief Operating Officer, Central Intelligence Agency (2017 to 2018) | 65 | None | ||||||||||||
Thomas W. Bunn (1953) | Director | Since 2017 | Retired | 65 | None | ||||||||||||
Chris H. Cheesman (1962) | Director | Since 2019 | Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018) | 65 | Alleghany Corporation (2021 to 2022) | ||||||||||||
Barry Fink (1955) | Director | Since 2012 (independent since 2016) | Retired | 65 | None | ||||||||||||
Rajesh K. Gupta (1960) | Director | Since 2019 | Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019) | 65 | None |
28
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Lynn Jenkins (1963) | Director | Since 2019 | Consultant, LJ Strategies (2019 to present); United States Representative, U.S. House of Representatives (2009 to 2018) | 65 | MGP Ingredients, Inc. (2019 to 2021) | ||||||||||||
Jan M. Lewis (1957) | Director and Board Chair | Since 2011 (Board Chair since 2022) | Retired | 65 | None | ||||||||||||
Gary C. Meltzer (1963) | Director | Since 2022 | Advisor, Pontoro (2021 to present); Executive Advisor, Consultant and Investor, Harris Ariel Advisory LLC (2020 to present); Managing Partner, PricewaterhouseCoopers LLP (1985 to 2020) | 65 | ExcelFin Acquisition Corp., Apollo Realty Income Solutions, Inc. | ||||||||||||
Stephen E. Yates(1) (1948) | Director | Since 2012 | Retired | 118 | None | ||||||||||||
Interested Director | |||||||||||||||||
Jonathan S. Thomas (1963) | Director | Since 2007 | President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Director, ACC and other ACC subsidiaries | 150 | None |
(1) Effective December 31, 2023, Steven E. Yates retired from the Board of Directors.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.
29
Officers
The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for each of the 16 investment companies in the American Century family of funds. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Offices with the Funds | Principal Occupation(s) During the Past Five Years | ||||||
Patrick Bannigan (1965) | President since 2019 | Executive Vice President and Director, ACC (2012 to present); Chief Financial Officer, Chief Accounting Officer and Treasurer, ACC (2015 to present). Also serves as President, ACS; Vice President, ACIM; Chief Financial Officer, Chief Accounting Officer and/or Director, ACIM, ACS and other ACC subsidiaries | ||||||
R. Wes Campbell (1974) | Chief Financial Officer and Treasurer since 2018; Vice President since 2023 | Vice President, ACS, (2020 to present); Investment Operations and Investment Accounting, ACS (2000 to present) | ||||||
Amy D. Shelton (1964) | Chief Compliance Officer and Vice President since 2014 | Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present). Also serves as Vice President, ACIS | ||||||
John Pak (1968) | General Counsel and Senior Vice President since 2021 | General Counsel and Senior Vice President, ACC (2021 to present). Also serves as General Counsel and Senior Vice President, ACIM, ACS and ACIS. Chief Legal Officer of Investment and Wealth Management, The Bank of New York Mellon (2014 to 2021) | ||||||
Cihan Kasikara (1974) | Vice President since 2023 | Senior Vice President, ACS (2022 to present); Treasurer, ACS (2023 to present); Vice President, ACS (2020 to 2022); Vice President, Franklin Templeton (2015 to 2020) | ||||||
Kathleen Gunja Nelson (1976) | Vice President since 2023 | Vice President, ACS (2017 to present) | ||||||
Ward D. Stauffer (1960) | Secretary since 2005 | Attorney, ACC (2003 to present) |
30
Approval of Management Agreement |
At a meeting held on June 28, 2023, the Fund’s Board of Directors (the "Board") unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under the Investment Company Act of 1940 (the “Investment Company Act”), contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s Directors, including a majority of the independent Directors.
Prior to its consideration of the renewal of the management agreement, the Directors requested and reviewed data and information compiled by the Advisor and certain independent data providers concerning the Fund. This review was in addition to the oversight and evaluation undertaken by the Board and its committees on a continual basis and the information received was supplemental to the information that the Board and its committees receive and consider over time.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor and its affiliates included, but was not limited to
•the nature, extent, and quality of investment management, shareholder services, distribution services, and other services provided to the Fund;
•the wide range of programs and services the Advisor and other service providers provide to the Fund and its shareholders on a routine and non-routine basis;
•the Fund’s investment performance compared to appropriate benchmarks and/or peer groups of other mutual funds with similar investment objectives and strategies;
•the cost of owning the Fund compared to the cost of owning similarly-managed funds;
•the Advisor’s compliance policies, procedures, and regulatory experience and those of certain other service providers;
•the Advisor’s strategic plans, generally, and with respect to areas of heightened regulatory interest in the mutual fund industry and certain recent geopolitical and other issues;
•the Advisor’s business continuity plans, vendor management practices, and information security practices;
•the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the Advisor’s financial results of operation;
•possible economies of scale associated with the Advisor’s management of the Fund;
•any collateral benefits derived by the Advisor from the management of the Fund;
•fees and expenses associated with any investment by the Fund in other funds;
•payments to intermediaries by the Fund and the Advisor and services provided by intermediaries in connection therewith; and
•services provided and charges to the Advisor's other investment management clients.
The Board held two meetings to consider the renewal. The independent Directors also met in private session multiple times to review and discuss the information provided in response to their request. The independent Directors held active discussions with the Advisor regarding the renewal of the management agreement, requesting supplemental information, and reviewing information provided by the Advisor in response thereto. The independent Directors had the benefit of the advice of their independent counsel throughout the process.
Factors Considered
The Directors considered all of the information provided by the Advisor, the independent data providers, and independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Directors did not identify any single factor as being all-important or controlling, and each Director may have attributed different levels of importance to different factors.
31
In deciding to renew the management agreement, the Board based its decision on a number of factors, including without limitation the following:
Nature, Extent and Quality of Services — Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that the Advisor provides or arranges at its own expense a wide variety of services which include, without limitation, the following:
•constructing and designing the Fund
•portfolio research and security selection
•initial capitalization/funding
•securities trading
•Fund administration
•custody of Fund assets
•daily valuation of the Fund’s portfolio
•liquidity monitoring and management
•risk management, including information security
•shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications
•legal services (except the independent Directors’ counsel)
•regulatory and portfolio compliance
•financial reporting
•marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans)
The Board noted that many of these services have expanded over time in terms of both quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and principal investment strategies. Further, the Directors recognize that the Advisor has an obligation to monitor trading activities, and in particular to seek the best execution of fund trades, and to evaluate the use of and payment for research. In providing these services, the Advisor utilizes teams of investment professionals who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Fund Performance Review Committee, provides oversight of the investment performance process. It regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Directors also review investment performance information during the management agreement renewal process. If performance concerns are identified, the Board discusses with the Advisor the reasons for such results and any actions being taken to improve performance and may conduct special reviews until performance improves. The Fund’s performance was above its benchmark for the three-, five-, and ten-year periods and below its benchmark for the one-year period reviewed by the Board. In relation to industry peers, the Fund was above the median of its peer performance universe as identified by a third-party service provider for the three-, five-, and ten-year periods and below the median for the one-year period. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
Shareholder and Other Services. Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through its various committees, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction, technology support (including information security), new products and services offered to Fund shareholders, securities trading activities,
32
portfolio valuation services, auditing services, and legal and operational compliance activities. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund (pre- and post-distribution), and its financial results of operation. The Directors have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the terms of the current management agreement. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is sharing economies of scale, to the extent they exist, through its fee structure, and through reinvestment in its business, infrastructure, investment capabilities and initiatives to provide shareholders enhanced and expanded content and services. The Board also noted that economies of scale are shared with the Fund and its shareholders through management fee breakpoints that serve to reduce the effective management fee as the assets of the Fund grow. Assets of various classes of the same Fund or similarly-managed products are combined with the assets of the Fund to help achieve those breakpoints.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage and other transaction fees and expenses relating to acquisition and disposition of portfolio securities, acquired fund fees and expenses, taxes, interest, extraordinary expenses, fund litigation expenses, fees and expenses of the Fund’s independent Directors (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Investment Company Act Rule 12b-1. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider comparing the Fund’s unified fee to the total expense ratios of its peers. The unified fee charged to shareholders of the Fund was above the median of the total expense ratios of the Fund’s peer expense universe. In addition, the Board reviewed the Fund’s position relative to the narrower set of its expense group peers. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They
33
observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
Payments to Intermediaries. The Directors also requested and received a description of payments made to intermediaries by the Fund and the Advisor and services provided in response thereto. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund. The Directors reviewed such information and received representations from the Advisor that all such payments by the Fund were made pursuant to the Fund's Rule 12b-1 Plan and that all such payments by the Advisor were made from the Advisor’s resources and reasonable profits.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the possible existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. They concluded that the Advisor’s primary business is managing funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. To the extent there are potential collateral benefits, the Board has been advised and has taken this into consideration in its review of the management contract with the Fund. The Board noted that additional assets from other clients may offer the Advisor some benefit from increased leverage with prospective clients, service providers, and counterparties. Additionally, the Advisor may receive proprietary research from broker-dealers that execute fund portfolio transactions, which the Board concluded is likely to benefit other clients of the Advisor, as well as Fund shareholders. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board concluded that appropriate allocation methodologies had been employed to assign resources and the cost of those resources to these other clients and, where expressly provided, these other client assets may be included with the assets of the Fund to determine breakpoints in the management fee schedule.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Directors. As a result of this process, the Board, including all of the independent Directors, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and received over time, determined that the terms of the management agreement are fair and reasonable and that the management fee charged to the Fund is reasonable in light of the services provided and that the management agreement between the Fund and the Advisor should be renewed for an additional one-year period.
34
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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Other Tax Information
The following information is provided pursuant to provisions of the Internal Revenue Code.
The fund hereby designates up to the maximum amount allowable as qualified dividend income for the fiscal year ended November 30, 2023.
For the fiscal year ended November 30, 2023, the fund intends to pass through to shareholders foreign source income of $43,389,916 and foreign taxes paid of $2,068,966, or up to the maximum amount allowable, as a foreign tax credit. Foreign source income and foreign tax expense per outstanding share on November 30, 2023 are $0.1819 and $0.0087, respectively.
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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. | ||||||||
©2024 American Century Proprietary Holdings, Inc. All rights reserved. CL-ANN-91027 2401 |
![image5.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image5.jpg)
Annual Report | |||||
November 30, 2023 | |||||
International Opportunities Fund | |||||
Investor Class (AIOIX) | |||||
I Class (ACIOX) | |||||
A Class (AIVOX) | |||||
C Class (AIOCX) | |||||
R Class (AIORX) |
The Securities and Exchange Commission (SEC) adopted new rules that will require annual and semiannual reports to transition to a new format known as a Tailored Shareholder Report beginning in July 2024. The amendments will require the transmission of a concise report highlighting key fund information to investors. The detailed financial statements will remain available on our website, will be delivered to investors free of charge upon request, and will continue to be filed with the SEC.
Table of Contents |
President’s Letter | |||||
Performance | |||||
Portfolio Commentary | |||||
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 | |||||
Report of Independent Registered Public Accounting Firm | |||||
Management | |||||
Approval of Management Agreement | |||||
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 |
![jthomasrev0514a14.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/jthomasrev0514a14.jpg)
Dear Investor:
Thank you for reviewing this annual report for the period ending November 30, 2023. Annual reports help convey important information about fund returns, including market factors that affect performance. For additional investment insights, please visit americancentury.com.
Stocks Rallied Amid Persistent Volatility
Despite ongoing challenges from a variety of sources, global stocks broadly delivered solid gains for the 12-month period. Amid persistent inflation, central banks continued to raise interest rates through much of the fiscal year. Additionally, banking industry turmoil, economic uncertainty and geopolitical unrest added to the volatile backdrop.
Overall, investor expectations for central banks to conclude their rate-hike campaigns fueled optimism. In the first half of the period, inflation’s steady slowdown, a series of bank failures and mounting recession worries prompted investors to regularly recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to lift interest rates through the third quarter of 2023.
By period-end, most central banks had paused their tightening campaigns alongside slower inflation rates and weakening growth data. While many observers believed the pauses indicated an end to the long-standing rate-hike programs, still-above-target inflation prompted policymakers to leave their options open. Nevertheless, financial markets rallied late in the period, convinced central banks would pivot to rate cuts in 2024.
In addition, corporate earnings generally remained better than expected, which also aided stock returns. Overall, most broad global stock indices delivered double-digit gains for the period. Growth stocks were particularly strong and significantly outperformed their value-stock peers. However, among small-cap stocks, the value style outperformed. Emerging markets stocks advanced but notably lagged their developed markets counterparts.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of persistent inflation, tighter financial conditions and recession risk. In addition, the Israel-Hamas war complicates the global backdrop and represents another key consideration for our investment teams.
Our firm has a long history of helping clients weather unpredictable and volatile markets, and we’re determined to meet today’s challenges. Thank you for your trust and confidence in American Century Investments.
With appreciation and respect,
![image48a16a.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image48a16a.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Performance |
Total Returns as of November 30, 2023 | |||||||||||||||||
Average Annual Returns | |||||||||||||||||
Ticker Symbol | 1 year | 5 years | 10 years | Inception Date | |||||||||||||
Investor Class | AIOIX | -1.73% | 3.15% | 3.46% | 6/1/01 | ||||||||||||
MSCI ACWI ex-U.S. Small Cap Growth Index | — | 6.67% | 5.14% | 4.50% | — | ||||||||||||
I Class | ACIOX | -1.62% | 3.35% | 3.65% | 1/9/03 | ||||||||||||
A Class | AIVOX | 3/1/10 | |||||||||||||||
No sales charge | -1.99% | 2.91% | 3.20% | ||||||||||||||
With sales charge | -7.63% | 1.70% | 2.59% | ||||||||||||||
C Class | AIOCX | -2.65% | 2.15% | 2.43% | 3/1/10 | ||||||||||||
R Class | AIORX | -2.26% | 2.65% | 2.95% | 3/1/10 |
Fund returns would have been lower if a portion of the fees had not been waived.
C Class shares will automatically convert to A Class shares after being held for approximately eight years. C Class average annual returns do not reflect this conversion.
Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
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Growth of $10,000 Over 10 Years | ||
$10,000 investment made November 30, 2013 | ||
Performance for other share classes will vary due to differences in fee structure. |
![chart-e78e47a156294b87a4ba.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/chart-e78e47a156294b87a4ba.jpg)
Value on November 30, 2023 | |||||
Investor Class — $14,055 | |||||
MSCI ACWI ex-U.S. Small Cap Growth Index — $15,534 | |||||
Ending value of Investor Class would have been lower if a portion of the fees had not been waived.
Total Annual Fund Operating Expenses | ||||||||||||||
Investor Class | I Class | A Class | C Class | R Class | ||||||||||
1.53% | 1.33% | 1.78% | 2.53% | 2.03% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
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Portfolio Commentary |
Portfolio Managers: Trevor Gurwich, Federico Laffan and Pratik Patel
Performance Summary
International Opportunities returned -1.73%* for the fiscal year ended November 30, 2023. The MSCI ACWI ex-U.S. Small Cap Growth Index (the fund’s benchmark) returned 6.67%.
Portfolio Review
Non-U.S. small-capitalization (small-cap) equities delivered positive returns despite periods of volatility, with small-cap stocks lagging large caps. Equity markets during the period were heavily impacted by the direction and outlook for interest rates globally as opposed to company fundamentals. In the short term, macro-driven markets tend to be challenging for our bottom-up approach focused on identifying companies with accelerating and sustainable earnings growth.
Stock Selection in Materials Detracted
In the materials sector, the fund’s relative performance was hurt by its lack of exposure to Ecopro BM, which supplies chemicals used in cathode batteries. The stock delivered strong performance for the index, fueled by expectations of rising from the electric vehicle industry.
Economic headwinds pressured several fund holdings in other sectors. Inmode, a provider of minimally invasive surgeries, faced business uncertainty as a weaker economic environment and higher financing costs dampened demand for elective medical procedures. We remain invested in the stock given our confidence in the company’s long-term earnings growth potential.
WNS Holdings, another detractor, provides process management solutions. The stock declined on worries that it might face competitive challenges from artificial intelligence (AI). We believe these concerns were overstated, as WNS is already incorporating predictive AI to enhance its business offerings.
Real Estate Developer was a Notable Contributor
Stock selection in the real estate sector lifted relative performance, with a notable contribution from Prestige Estates Projects. The India-based real estate development company reported healthy earnings trends, aided by strong sales and improved operating margins.
Stock selection in the consumer staples sector was also beneficial. India-based Varun Beverages, a notable sector performer, is one of the world’s leading distributors of Pepsi products. It saw accelerating demand, supported by its increased production capacity, new product launches and geographic expansion.
Elsewhere in the portfolio, sporting goods company Asics was a contributor. The sporting goods company reported record sales and healthy earnings growth, reflecting strength across its product lines and geographic markets.
*All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the fund’s benchmark, other share classes may not. See page 3 for returns for all share classes.
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Fund Characteristics |
NOVEMBER 30, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 99.0% | ||||
Exchange-Traded Funds | —* | ||||
Short-Term Investments | 2.5% | ||||
Other Assets and Liabilities | (1.5)% | ||||
*Category is less than 0.05% of total net assets. | |||||
Top Five Countries* | % of net assets | ||||
Japan | 19.1% | ||||
Canada | 12.2% | ||||
United Kingdom | 10.2% | ||||
India | 8.5% | ||||
Australia | 6.6% |
*Exposure indicated excludes Exchange-Traded Funds. The Schedule of Investments provides additional information on the fund's portfolio holdings.
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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 June 1, 2023 to November 30, 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 6/1/23 | Ending Account Value 11/30/23 | Expenses Paid During Period(1) 6/1/23 - 11/30/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $979.20 | $7.74 | 1.56% | ||||||||||
I Class | $1,000 | $979.60 | $6.75 | 1.36% | ||||||||||
A Class | $1,000 | $977.80 | $8.97 | 1.81% | ||||||||||
C Class | $1,000 | $974.70 | $12.67 | 2.56% | ||||||||||
R Class | $1,000 | $977.40 | $10.21 | 2.06% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,017.25 | $7.89 | 1.56% | ||||||||||
I Class | $1,000 | $1,018.25 | $6.88 | 1.36% | ||||||||||
A Class | $1,000 | $1,015.99 | $9.15 | 1.81% | ||||||||||
C Class | $1,000 | $1,012.23 | $12.91 | 2.56% | ||||||||||
R Class | $1,000 | $1,014.74 | $10.40 | 2.06% |
(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 183, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
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Schedule of Investments |
NOVEMBER 30, 2023
Shares | Value | |||||||
COMMON STOCKS — 99.0% | ||||||||
Australia — 6.6% | ||||||||
Allkem Ltd.(1) | 114,370 | $ | 648,303 | |||||
Altium Ltd. | 152,822 | 4,533,875 | ||||||
CAR Group Ltd. | 271,064 | 4,981,024 | ||||||
NEXTDC Ltd.(1) | 628,679 | 5,398,405 | ||||||
Pinnacle Investment Management Group Ltd. | 201,644 | 1,171,614 | ||||||
Pro Medicus Ltd. | 43,330 | 2,530,275 | ||||||
Seven Group Holdings Ltd. | 219,611 | 4,654,437 | ||||||
Steadfast Group Ltd. | 1,063,035 | 3,955,967 | ||||||
27,873,900 | ||||||||
Brazil — 2.3% | ||||||||
Direcional Engenharia SA | 603,800 | 2,450,996 | ||||||
TOTVS SA | 544,300 | 3,663,648 | ||||||
Vivara Participacoes SA | 178,500 | 1,085,785 | ||||||
YDUQS Participacoes SA | 589,700 | 2,416,524 | ||||||
9,616,953 | ||||||||
Canada — 12.2% | ||||||||
Alamos Gold, Inc., Class A | 342,201 | 5,071,419 | ||||||
ATS Corp.(1) | 91,293 | 3,593,322 | ||||||
Boyd Group Services, Inc. | 20,308 | 3,872,281 | ||||||
Brookfield Infrastructure Corp., Class A | 99,164 | 3,080,034 | ||||||
Capstone Copper Corp.(1) | 589,573 | 2,415,731 | ||||||
Celestica, Inc.(1) | 95,697 | 2,579,991 | ||||||
Descartes Systems Group, Inc.(1) | 28,274 | 2,296,592 | ||||||
ERO Copper Corp.(1) | 259,240 | 3,194,291 | ||||||
Finning International, Inc. | 169,769 | 4,317,571 | ||||||
FirstService Corp. | 21,819 | 3,423,837 | ||||||
Kinaxis, Inc.(1) | 31,343 | 3,487,817 | ||||||
Lundin Gold, Inc. | 379,272 | 4,555,904 | ||||||
Precision Drilling Corp.(1) | 23,058 | 1,333,743 | ||||||
Stantec, Inc. | 112,933 | 8,415,774 | ||||||
51,638,307 | ||||||||
China — 1.5% | ||||||||
Kanzhun Ltd., ADR(1) | 147,094 | 2,431,464 | ||||||
Tongcheng Travel Holdings Ltd.(1) | 1,507,600 | 2,771,525 | ||||||
Xtep International Holdings Ltd. | 2,224,500 | 1,284,499 | ||||||
6,487,488 | ||||||||
Denmark — 0.8% | ||||||||
NKT A/S(1) | 56,960 | 3,537,031 | ||||||
France — 4.5% | ||||||||
Alten SA | 16,767 | 2,295,853 | ||||||
Elis SA | 333,992 | 6,440,112 | ||||||
Gaztransport Et Technigaz SA | 30,530 | 4,118,100 | ||||||
SES-imagotag SA(1)(2) | 18,359 | 2,063,724 | ||||||
SOITEC(1) | 11,622 | 2,108,435 | ||||||
Ubisoft Entertainment SA(1) | 73,986 | 2,105,809 | ||||||
19,132,033 |
9
Shares | Value | |||||||
Germany — 6.4% | ||||||||
AIXTRON SE | 127,780 | $ | 4,653,358 | |||||
CTS Eventim AG & Co. KGaA | 65,267 | 4,476,952 | ||||||
Gerresheimer AG | 37,315 | 3,535,692 | ||||||
Hugo Boss AG | 62,589 | 4,386,925 | ||||||
KION Group AG | 70,524 | 2,571,803 | ||||||
Redcare Pharmacy NV(1) | 35,519 | 5,013,379 | ||||||
Scout24 SE | 36,156 | 2,519,357 | ||||||
27,157,466 | ||||||||
Greece — 0.8% | ||||||||
National Bank of Greece SA(1) | 466,148 | 3,194,954 | ||||||
Hong Kong — 1.6% | ||||||||
Samsonite International SA(1) | 2,389,500 | 6,969,127 | ||||||
India — 8.5% | ||||||||
Coforge Ltd. | 64,576 | 4,471,035 | ||||||
Kalyan Jewellers India Ltd. | 962,432 | 3,758,632 | ||||||
KEI Industries Ltd. | 135,569 | 4,686,483 | ||||||
Max Healthcare Institute Ltd. | 941,128 | 7,170,485 | ||||||
Phoenix Mills Ltd. | 82,972 | 2,361,298 | ||||||
Prestige Estates Projects Ltd. | 504,791 | 6,080,346 | ||||||
PVR Inox Ltd.(1) | 103,369 | 2,130,257 | ||||||
Varun Beverages Ltd. | 352,345 | 4,677,753 | ||||||
WNS Holdings Ltd., ADR(1) | 10,805 | 642,681 | ||||||
35,978,970 | ||||||||
Indonesia — 0.5% | ||||||||
Ace Hardware Indonesia Tbk PT | 46,007,600 | 2,239,962 | ||||||
Ireland — 0.7% | ||||||||
Glanbia PLC | 173,073 | 2,927,179 | ||||||
Israel — 3.8% | ||||||||
Camtek Ltd.(1) | 53,672 | 3,407,099 | ||||||
CyberArk Software Ltd.(1) | 27,515 | 5,482,914 | ||||||
Inmode Ltd.(1) | 92,787 | 2,203,691 | ||||||
Nova Ltd.(1) | 37,727 | 4,852,069 | ||||||
15,945,773 | ||||||||
Italy — 0.3% | ||||||||
Brembo SpA | 107,250 | 1,263,354 | ||||||
Japan — 19.1% | ||||||||
Amvis Holdings, Inc. | 186,500 | 3,621,613 | ||||||
Asics Corp. | 228,100 | 8,174,758 | ||||||
FP Partner, Inc.(2) | 129,600 | 4,395,928 | ||||||
GMO Financial Gate, Inc. | 17,600 | 1,109,849 | ||||||
GMO Payment Gateway, Inc. | 74,500 | 4,368,273 | ||||||
Hoshizaki Corp. | 98,900 | 3,149,680 | ||||||
Internet Initiative Japan, Inc. | 190,900 | 3,426,015 | ||||||
Invincible Investment Corp. | 5,491 | 2,223,695 | ||||||
Japan Airport Terminal Co. Ltd. | 81,900 | 3,592,648 | ||||||
JINS Holdings, Inc. | 53,700 | 1,701,114 | ||||||
JMDC, Inc.(2) | 42,600 | 1,239,182 | ||||||
Kotobuki Spirits Co. Ltd. | 349,000 | 5,531,091 | ||||||
MatsukiyoCocokara & Co. | 260,400 | 4,498,584 | ||||||
Money Forward, Inc.(1) | 132,100 | 4,040,927 | ||||||
Rohto Pharmaceutical Co. Ltd. | 206,100 | 4,312,098 |
10
Shares | Value | |||||||
Ryohin Keikaku Co. Ltd. | 354,900 | $ | 5,609,264 | |||||
Sankyo Co. Ltd. | 57,200 | 2,469,236 | ||||||
Sanrio Co. Ltd.(2) | 97,100 | 3,975,405 | ||||||
Socionext, Inc. | 22,000 | 1,967,033 | ||||||
TechnoPro Holdings, Inc. | 170,600 | 3,967,680 | ||||||
Tokyo Ohka Kogyo Co. Ltd. | 41,900 | 2,591,707 | ||||||
Tokyo Seimitsu Co. Ltd. | 37,200 | 2,153,325 | ||||||
Toyo Suisan Kaisha Ltd. | 50,500 | 2,694,623 | ||||||
80,813,728 | ||||||||
Mexico — 3.3% | ||||||||
Corp. Inmobiliaria Vesta SAB de CV, ADR(2) | 124,950 | 4,721,860 | ||||||
Gruma SAB de CV, B Shares | 156,876 | 2,900,515 | ||||||
Prologis Property Mexico SA de CV | 547,081 | 2,315,767 | ||||||
Vista Energy SAB de CV, ADR(1) | 123,876 | 3,819,097 | ||||||
13,757,239 | ||||||||
Netherlands — 0.7% | ||||||||
BE Semiconductor Industries NV | 22,433 | 3,149,304 | ||||||
Norway — 1.0% | ||||||||
Seadrill Ltd.(1) | 94,253 | 4,182,948 | ||||||
Panama — 0.9% | ||||||||
Copa Holdings SA, Class A | 43,314 | 4,012,609 | ||||||
South Africa — 1.1% | ||||||||
Aspen Pharmacare Holdings Ltd.(2) | 246,832 | 2,427,705 | ||||||
Bidvest Group Ltd.(2) | 161,413 | 2,022,051 | ||||||
4,449,756 | ||||||||
South Korea — 1.7% | ||||||||
JYP Entertainment Corp. | 56,801 | 4,217,667 | ||||||
People & Technology, Inc. | 69,674 | 2,827,089 | ||||||
7,044,756 | ||||||||
Spain — 0.3% | ||||||||
Fluidra SA(2) | 52,747 | 1,091,647 | ||||||
Sweden — 3.3% | ||||||||
Fortnox AB | 452,291 | 2,405,887 | ||||||
Saab AB, B Shares | 121,883 | 6,263,578 | ||||||
Sinch AB(1)(2) | 716,551 | 2,039,001 | ||||||
Trelleborg AB, B Shares | 103,964 | 3,226,870 | ||||||
13,935,336 | ||||||||
Switzerland — 0.6% | ||||||||
Swissquote Group Holding SA | 11,166 | 2,546,018 | ||||||
Taiwan — 4.4% | ||||||||
Chroma ATE, Inc. | 311,000 | 2,132,182 | ||||||
Gold Circuit Electronics Ltd. | 815,000 | 5,939,781 | ||||||
Lotes Co. Ltd. | 149,000 | 4,420,662 | ||||||
Poya International Co. Ltd. | 168,670 | 2,756,902 | ||||||
Wiwynn Corp. | 57,000 | 3,198,124 | ||||||
18,447,651 | ||||||||
United Kingdom — 10.2% | ||||||||
B&M European Value Retail SA | 863,830 | 6,268,164 | ||||||
ConvaTec Group PLC | 799,682 | 2,271,127 | ||||||
Darktrace PLC(1) | 832,793 | 3,666,836 | ||||||
Diploma PLC | 113,485 | 4,825,489 | ||||||
Games Workshop Group PLC | 27,757 | 3,760,652 |
11
Shares | Value | |||||||
Greggs PLC | 87,739 | $ | 2,723,945 | |||||
Indivior PLC(1) | 50,485 | 821,960 | ||||||
Intermediate Capital Group PLC | 280,708 | 5,564,057 | ||||||
Melrose Industries PLC | 787,316 | 5,169,086 | ||||||
Spectris PLC | 76,053 | 3,234,234 | ||||||
Weir Group PLC | 200,399 | 4,750,042 | ||||||
43,055,592 | ||||||||
United States — 1.9% | ||||||||
Sigma Lithium Corp.(1)(2) | 88,322 | 2,648,777 | ||||||
TechnipFMC PLC | 260,386 | 5,395,198 | ||||||
8,043,975 | ||||||||
TOTAL COMMON STOCKS (Cost $367,451,651) | 418,493,056 | |||||||
EXCHANGE-TRADED FUNDS† | ||||||||
Schwab International Small-Cap Equity ETF(2) (Cost $49,514) | 1,803 | 60,310 | ||||||
SHORT-TERM INVESTMENTS — 2.5% | ||||||||
Money Market Funds — 1.8% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 6,072 | 6,072 | ||||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) | 7,373,185 | 7,373,185 | ||||||
7,379,257 | ||||||||
Repurchase Agreements — 0.7% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.625%, 7/31/29, valued at $362,390), in a joint trading account at 5.30%, dated 11/30/23, due 12/1/23 (Delivery value $355,202) | 355,150 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.875%, 4/15/29, valued at $2,765,363), at 5.30%, dated 11/30/23, due 12/1/23 (Delivery value $2,711,399) | 2,711,000 | |||||||
3,066,150 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $10,445,407) | 10,445,407 | |||||||
TOTAL INVESTMENT SECURITIES — 101.5% (Cost $377,946,572) | 428,998,773 | |||||||
OTHER ASSETS AND LIABILITIES — (1.5)% | (6,186,360) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 422,812,413 |
12
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Information Technology | 21.2% | ||||
Industrials | 20.7% | ||||
Consumer Discretionary | 15.6% | ||||
Consumer Staples | 7.7% | ||||
Financials | 6.2% | ||||
Communication Services | 6.2% | ||||
Health Care | 6.1% | ||||
Real Estate | 5.0% | ||||
Materials | 5.0% | ||||
Energy | 4.5% | ||||
Utilities | 0.8% | ||||
Exchange-Traded Funds | —* | ||||
Short-Term Investments | 2.5% | ||||
Other Assets and Liabilities | (1.5)% |
*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 $13,455,895. 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 $14,128,983, which includes securities collateral of $6,755,798.
See Notes to Financial Statements.
13
Statement of Assets and Liabilities |
NOVEMBER 30, 2023 | |||||
Assets | |||||
Investment securities, at value (cost of $370,573,387) — including $13,455,895 of securities on loan | $ | 421,625,588 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $7,373,185) | 7,373,185 | ||||
Total investment securities, at value (cost of $377,946,572) | 428,998,773 | ||||
Foreign currency holdings, at value (cost of $14,718) | 14,624 | ||||
Receivable for investments sold | 5,978,454 | ||||
Receivable for capital shares sold | 35,906 | ||||
Dividends and interest receivable | 782,980 | ||||
Securities lending receivable | 28,539 | ||||
Other assets | 116,199 | ||||
435,955,475 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 7,373,185 | ||||
Payable for investments purchased | 3,113,128 | ||||
Payable for capital shares redeemed | 292,102 | ||||
Accrued management fees | 509,709 | ||||
Distribution and service fees payable | 1,584 | ||||
Accrued foreign taxes | 1,613,165 | ||||
Accrued IRS compliance fees | 240,189 | ||||
13,143,062 | |||||
Net Assets | $ | 422,812,413 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 501,505,532 | |||
Distributable earnings (loss) | (78,693,119) | ||||
$ | 422,812,413 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $339,990,410 | 40,040,211 | $8.49 | ||||||||
I Class, $0.01 Par Value | $76,614,194 | 8,873,677 | $8.63 | ||||||||
A Class, $0.01 Par Value | $4,904,966 | 586,048 | $8.37 | ||||||||
C Class, $0.01 Par Value | $213,694 | 27,689 | $7.72 | ||||||||
R Class, $0.01 Par Value | $1,089,149 | 132,815 | $8.20 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except A Class, for which the maximum offering price per share was $8.88 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of A Class and C Class.
See Notes to Financial Statements.
14
Statement of Operations |
YEAR ENDED NOVEMBER 30, 2023 | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $698,755) | $ | 6,610,729 | |||
Securities lending, net | 342,144 | ||||
Interest | 192,209 | ||||
7,145,082 | |||||
Expenses: | |||||
Management fees | 6,763,938 | ||||
Distribution and service fees: | |||||
A Class | 12,383 | ||||
C Class | 2,360 | ||||
R Class | 7,741 | ||||
Directors' fees and expenses | 15,762 | ||||
Other expenses | 85,841 | ||||
6,888,025 | |||||
Net investment income (loss) | 257,057 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions (net of foreign tax expenses paid (refunded) of $168,724) | (44,073,364) | ||||
Foreign currency translation transactions | (405,387) | ||||
(44,478,751) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments (includes (increase) decrease in accrued foreign taxes of $(1,198,799)) | 36,819,684 | ||||
Translation of assets and liabilities in foreign currencies | 12,409 | ||||
36,832,093 | |||||
Net realized and unrealized gain (loss) | (7,646,658) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (7,389,601) |
See Notes to Financial Statements.
15
Statement of Changes in Net Assets |
YEARS ENDED NOVEMBER 30, 2023 AND NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | November 30, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 257,057 | $ | 1,018,045 | ||||
Net realized gain (loss) | (44,478,751) | (70,906,015) | ||||||
Change in net unrealized appreciation (depreciation) | 36,832,093 | (110,228,942) | ||||||
Net increase (decrease) in net assets resulting from operations | (7,389,601) | (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) | (45,954,756) | 41,232,662 | ||||||
Net increase (decrease) in net assets | (54,623,178) | (251,289,350) | ||||||
Net Assets | ||||||||
Beginning of period | 477,435,591 | 728,724,941 | ||||||
End of period | $ | 422,812,413 | $ | 477,435,591 |
See Notes to Financial Statements.
16
Notes to Financial Statements |
NOVEMBER 30, 2023
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.
17
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.
18
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 November 30, 2023.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 7,338,312 | — | — | — | $ | 7,338,312 | ||||||||||
Exchange-Traded Funds | 34,873 | — | — | — | 34,873 | ||||||||||||
Total Borrowings | $ | 7,373,185 | — | — | — | $ | 7,373,185 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 7,373,185 |
(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).
19
The management fee schedule range and the effective annual management fee for each class for the period ended November 30, 2023 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |||||||
Investor Class | 1.200% to 1.550% | 1.51% | ||||||
I Class | 1.000% to 1.350% | 1.31% | ||||||
A Class | 1.200% to 1.550% | 1.51% | ||||||
C Class | 1.200% to 1.550% | 1.51% | ||||||
R Class | 1.200% to 1.550% | 1.51% |
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 November 30, 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.
Other Expenses — A fund’s other expenses may include interest charges, clearing exchange fees, proxy solicitation expenses, fees associated with the recovery of foreign tax reclaims and other miscellaneous expenses.
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 November 30, 2023 were $501,372,186 and $550,756,879, respectively.
20
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Year ended November 30, 2023 | Year ended November 30, 2022 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 670,000,000 | 670,000,000 | ||||||||||||
Sold | 1,013,081 | $ | 8,768,619 | 1,336,202 | $ | 12,903,382 | ||||||||
Issued in reinvestment of distributions | 97,008 | 833,302 | 7,261,013 | 83,356,434 | ||||||||||
Redeemed | (5,278,674) | (45,813,227) | (6,192,671) | (59,589,548) | ||||||||||
(4,168,585) | (36,211,306) | 2,404,544 | 36,670,268 | |||||||||||
I Class/Shares Authorized | 120,000,000 | 95,000,000 | ||||||||||||
Sold | 2,128,189 | 18,499,251 | 3,162,278 | 30,949,800 | ||||||||||
Issued in reinvestment of distributions | 45,265 | 394,713 | 1,879,082 | 21,891,303 | ||||||||||
Redeemed | (3,221,450) | (27,924,308) | (5,243,125) | (48,895,084) | ||||||||||
(1,047,996) | (9,030,344) | (201,765) | 3,946,019 | |||||||||||
A Class/Shares Authorized | 35,000,000 | 35,000,000 | ||||||||||||
Sold | 90,793 | 731,925 | 67,004 | 644,416 | ||||||||||
Issued in reinvestment of distributions | — | — | 108,812 | 1,233,933 | ||||||||||
Redeemed | (98,863) | (828,741) | (185,414) | (1,757,896) | ||||||||||
(8,070) | (96,816) | (9,598) | 120,453 | |||||||||||
C Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 1,909 | 15,094 | 248 | 2,471 | ||||||||||
Issued in reinvestment of distributions | — | — | 10,159 | 107,888 | ||||||||||
Redeemed | (7,441) | (59,422) | (28,973) | (263,636) | ||||||||||
(5,532) | (44,328) | (18,566) | (153,277) | |||||||||||
R Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 38,883 | 330,925 | 60,800 | 589,982 | ||||||||||
Issued in reinvestment of distributions | — | — | 27,778 | 310,275 | ||||||||||
Redeemed | (112,767) | (902,887) | (27,345) | (251,058) | ||||||||||
(73,884) | (571,962) | 61,233 | 649,199 | |||||||||||
Net increase (decrease) | (5,304,067) | $ | (45,954,756) | 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.
21
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 | $ | 9,083,862 | $ | 42,554,445 | — | ||||||
China | 2,431,464 | 4,056,024 | — | ||||||||
India | 642,681 | 35,336,289 | — | ||||||||
Israel | 15,945,773 | — | — | ||||||||
Mexico | 8,540,957 | 5,216,282 | — | ||||||||
Norway | 4,182,948 | — | — | ||||||||
Panama | 4,012,609 | — | — | ||||||||
United States | 8,043,975 | — | — | ||||||||
Other Countries | — | 278,445,747 | — | ||||||||
Exchange-Traded Funds | 60,310 | — | — | ||||||||
Short-Term Investments | 7,379,257 | 3,066,150 | — | ||||||||
$ | 60,323,836 | $ | 368,674,937 | — |
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 tax character of distributions paid during the years ended November 30, 2023 and November 30, 2022 were as follows:
2023 | 2022 | |||||||
Distributions Paid From | ||||||||
Ordinary income | $ | 1,278,821 | $ | 18,487,273 | ||||
Long-term capital gains | — | $ | 93,917,827 |
22
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 federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments | $ | 383,527,145 | |||
Gross tax appreciation of investments | $ | 60,575,191 | |||
Gross tax depreciation of investments | (15,103,563) | ||||
Net tax appreciation (depreciation) of investments | 45,471,628 | ||||
Net tax appreciation (depreciation) on translation of assets and liabilities in foreign currencies | (1,723,150) | ||||
Net tax appreciation (depreciation) | $ | 43,748,478 | |||
Undistributed ordinary income | $ | 1,100,601 | |||
Accumulated short-term capital losses | $ | (114,708,532) | |||
Accumulated long-term capital losses | $ | (8,833,666) |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
Accumulated capital losses 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.
23
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 | $8.66 | —(3) | (0.15) | (0.15) | (0.02) | — | (0.02) | $8.49 | (1.73)% | 1.53% | 0.03% | 110% | $339,990 | ||||||||||||||||||||||||||||
2022 | $13.79 | 0.01 | (3.00) | (2.99) | (0.05) | (2.09) | (2.14) | $8.66 | (25.53)% | 1.48% | 0.15% | 108% | $382,973 | ||||||||||||||||||||||||||||
2021 | $12.95 | (0.04) | 1.31 | 1.27 | — | (0.43) | (0.43) | $13.79 | 10.01% | 1.37% | (0.30)% | 127% | $576,312 | ||||||||||||||||||||||||||||
2020 | $10.17 | (0.01) | 2.89 | 2.88 | (0.10) | — | (0.10) | $12.95 | 28.52% | 1.40% | (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% | 0.23% | 124% | $499,296 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $8.81 | 0.02 | (0.16) | (0.14) | (0.04) | — | (0.04) | $8.63 | (1.62)% | 1.33% | 0.23% | 110% | $76,614 | ||||||||||||||||||||||||||||
2022 | $13.98 | 0.04 | (3.05) | (3.01) | (0.07) | (2.09) | (2.16) | $8.81 | (25.29)% | 1.28% | 0.35% | 108% | $87,392 | ||||||||||||||||||||||||||||
2021 | $13.10 | (0.01) | 1.32 | 1.31 | — | (0.43) | (0.43) | $13.98 | 10.12% | 1.17% | (0.10)% | 127% | $141,573 | ||||||||||||||||||||||||||||
2020 | $10.29 | 0.01 | 2.92 | 2.93 | (0.12) | — | (0.12) | $13.10 | 28.84% | 1.20% | 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% | 0.43% | 124% | $78,575 |
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 | $8.54 | (0.02) | (0.15) | (0.17) | — | — | — | $8.37 | (1.99)% | 1.78% | (0.22)% | 110% | $4,905 | ||||||||||||||||||||||||||||
2022 | $13.62 | (0.01) | (2.97) | (2.98) | (0.01) | (2.09) | (2.10) | $8.54 | (25.68)% | 1.73% | (0.10)% | 108% | $5,073 | ||||||||||||||||||||||||||||
2021 | $12.83 | (0.08) | 1.30 | 1.22 | — | (0.43) | (0.43) | $13.62 | 9.70% | 1.62% | (0.55)% | 127% | $8,220 | ||||||||||||||||||||||||||||
2020 | $10.07 | (0.04) | 2.87 | 2.83 | (0.07) | — | (0.07) | $12.83 | 28.28% | 1.65% | (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% | (0.02)% | 124% | $6,067 | ||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $7.93 | (0.08) | (0.13) | (0.21) | — | — | — | $7.72 | (2.65)% | 2.53% | (0.97)% | 110% | $214 | ||||||||||||||||||||||||||||
2022 | $12.87 | (0.09) | (2.76) | (2.85) | — | (2.09) | (2.09) | $7.93 | (26.27)% | 2.48% | (0.85)% | 108% | $264 | ||||||||||||||||||||||||||||
2021 | $12.23 | (0.17) | 1.24 | 1.07 | — | (0.43) | (0.43) | $12.87 | 8.93% | 2.37% | (1.30)% | 127% | $667 | ||||||||||||||||||||||||||||
2020 | $9.61 | (0.11) | 2.73 | 2.62 | — | — | — | $12.23 | 27.26% | 2.40% | (1.12)% | 131% | $981 | ||||||||||||||||||||||||||||
2019 | $8.86 | (0.07) | 1.07 | 1.00 | — | (0.25) | (0.25) | $9.61 | 11.77% | 2.46% | (0.77)% | 124% | $1,044 | ||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $8.39 | (0.04) | (0.15) | (0.19) | — | — | — | $8.20 | (2.26)% | 2.03% | (0.47)% | 110% | $1,089 | ||||||||||||||||||||||||||||
2022 | $13.43 | (0.03) | (2.92) | (2.95) | — | (2.09) | (2.09) | $8.39 | (25.85)% | 1.98% | (0.35)% | 108% | $1,734 | ||||||||||||||||||||||||||||
2021 | $12.69 | (0.11) | 1.28 | 1.17 | — | (0.43) | (0.43) | $13.43 | 9.41% | 1.87% | (0.80)% | 127% | $1,954 | ||||||||||||||||||||||||||||
2020 | $9.96 | (0.07) | 2.84 | 2.77 | (0.04) | — | (0.04) | $12.69 | 27.96% | 1.90% | (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% | (0.27)% | 124% | $1,962 |
Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)Per-share amount was less than $0.005.
*The amount shown for a share outstanding throughout the period may not correlate with the Statement(s) of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of a fund in relation to income earned and/or fluctuations in the fair value of a fund's investments.
See Notes to Financial Statements.
Report of Independent Registered Public Accounting Firm |
To the Shareholders of the International Opportunities Fund and the Board of Directors of American Century World Mutual Funds, Inc.
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of International Opportunities Fund (the “Fund”), one of the funds constituting the American Century World Mutual Funds, Inc., as of November 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of International Opportunities Fund of the American Century World Mutual Funds, Inc. as of November 30, 2023, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Kansas City, Missouri
January 17, 2024
We have served as the auditor of one or more American Century investment companies since 1997.
27
Management |
The Board of Directors
The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire on December 31 of the year in which they reach their 75th birthday.
Jonathan S. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Brian Bulatao (1964) | Director | Since 2022 | Chief Administrative Officer, Activision Blizzard, Inc. (2021 to present); Under Secretary of State for Management, U.S. Department of State (2018 to 2021); Chief Operating Officer, Central Intelligence Agency (2017 to 2018) | 65 | None | ||||||||||||
Thomas W. Bunn (1953) | Director | Since 2017 | Retired | 65 | None | ||||||||||||
Chris H. Cheesman (1962) | Director | Since 2019 | Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018) | 65 | Alleghany Corporation (2021 to 2022) | ||||||||||||
Barry Fink (1955) | Director | Since 2012 (independent since 2016) | Retired | 65 | None | ||||||||||||
Rajesh K. Gupta (1960) | Director | Since 2019 | Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019) | 65 | None |
28
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Lynn Jenkins (1963) | Director | Since 2019 | Consultant, LJ Strategies (2019 to present); United States Representative, U.S. House of Representatives (2009 to 2018) | 65 | MGP Ingredients, Inc. (2019 to 2021) | ||||||||||||
Jan M. Lewis (1957) | Director and Board Chair | Since 2011 (Board Chair since 2022) | Retired | 65 | None | ||||||||||||
Gary C. Meltzer (1963) | Director | Since 2022 | Advisor, Pontoro (2021 to present); Executive Advisor, Consultant and Investor, Harris Ariel Advisory LLC (2020 to present); Managing Partner, PricewaterhouseCoopers LLP (1985 to 2020) | 65 | ExcelFin Acquisition Corp., Apollo Realty Income Solutions, Inc. | ||||||||||||
Stephen E. Yates(1) (1948) | Director | Since 2012 | Retired | 118 | None | ||||||||||||
Interested Director | |||||||||||||||||
Jonathan S. Thomas (1963) | Director | Since 2007 | President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Director, ACC and other ACC subsidiaries | 150 | None |
(1) Effective December 31, 2023, Steven E. Yates retired from the Board of Directors.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.
29
Officers
The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for each of the 16 investment companies in the American Century family of funds. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Offices with the Funds | Principal Occupation(s) During the Past Five Years | ||||||
Patrick Bannigan (1965) | President since 2019 | Executive Vice President and Director, ACC (2012 to present); Chief Financial Officer, Chief Accounting Officer and Treasurer, ACC (2015 to present). Also serves as President, ACS; Vice President, ACIM; Chief Financial Officer, Chief Accounting Officer and/or Director, ACIM, ACS and other ACC subsidiaries | ||||||
R. Wes Campbell (1974) | Chief Financial Officer and Treasurer since 2018; Vice President since 2023 | Vice President, ACS, (2020 to present); Investment Operations and Investment Accounting, ACS (2000 to present) | ||||||
Amy D. Shelton (1964) | Chief Compliance Officer and Vice President since 2014 | Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present). Also serves as Vice President, ACIS | ||||||
John Pak (1968) | General Counsel and Senior Vice President since 2021 | General Counsel and Senior Vice President, ACC (2021 to present). Also serves as General Counsel and Senior Vice President, ACIM, ACS and ACIS. Chief Legal Officer of Investment and Wealth Management, The Bank of New York Mellon (2014 to 2021) | ||||||
Cihan Kasikara (1974) | Vice President since 2023 | Senior Vice President, ACS (2022 to present); Treasurer, ACS (2023 to present); Vice President, ACS (2020 to 2022); Vice President, Franklin Templeton (2015 to 2020) | ||||||
Kathleen Gunja Nelson (1976) | Vice President since 2023 | Vice President, ACS (2017 to present) | ||||||
Ward D. Stauffer (1960) | Secretary since 2005 | Attorney, ACC (2003 to present) |
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Approval of Management Agreement |
At a meeting held on June 28, 2023, the Fund’s Board of Directors (the "Board") unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under the Investment Company Act of 1940 (the “Investment Company Act”), contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s Directors, including a majority of the independent Directors.
Prior to its consideration of the renewal of the management agreement, the Directors requested and reviewed data and information compiled by the Advisor and certain independent data providers concerning the Fund. This review was in addition to the oversight and evaluation undertaken by the Board and its committees on a continual basis and the information received was supplemental to the information that the Board and its committees receive and consider over time.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor and its affiliates included, but was not limited to
•the nature, extent, and quality of investment management, shareholder services, distribution services, and other services provided to the Fund;
•the wide range of programs and services the Advisor and other service providers provide to the Fund and its shareholders on a routine and non-routine basis;
•the Fund’s investment performance compared to appropriate benchmarks and/or peer groups of other mutual funds with similar investment objectives and strategies;
•the cost of owning the Fund compared to the cost of owning similarly-managed funds;
•the Advisor’s compliance policies, procedures, and regulatory experience and those of certain other service providers;
•the Advisor’s strategic plans, generally, and with respect to areas of heightened regulatory interest in the mutual fund industry and certain recent geopolitical and other issues;
•the Advisor’s business continuity plans, vendor management practices, and information security practices;
•the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the Advisor’s financial results of operation;
•possible economies of scale associated with the Advisor’s management of the Fund;
•any collateral benefits derived by the Advisor from the management of the Fund;
•fees and expenses associated with any investment by the Fund in other funds;
•payments to intermediaries by the Fund and the Advisor and services provided by intermediaries in connection therewith; and
•services provided and charges to the Advisor's other investment management clients.
The Board held two meetings to consider the renewal. The independent Directors also met in private session multiple times to review and discuss the information provided in response to their request. The independent Directors held active discussions with the Advisor regarding the renewal of the management agreement, requesting supplemental information, and reviewing information provided by the Advisor in response thereto. The independent Directors had the benefit of the advice of their independent counsel throughout the process.
Factors Considered
The Directors considered all of the information provided by the Advisor, the independent data providers, and independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Directors did not identify any single factor as being all-important or controlling, and each Director may have attributed different levels of importance to different factors.
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In deciding to renew the management agreement, the Board based its decision on a number of factors, including without limitation the following:
Nature, Extent and Quality of Services — Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that the Advisor provides or arranges at its own expense a wide variety of services which include, without limitation, the following:
•constructing and designing the Fund
•portfolio research and security selection
•initial capitalization/funding
•securities trading
•Fund administration
•custody of Fund assets
•daily valuation of the Fund’s portfolio
•liquidity monitoring and management
•risk management, including information security
•shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications
•legal services (except the independent Directors’ counsel)
•regulatory and portfolio compliance
•financial reporting
•marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans)
The Board noted that many of these services have expanded over time in terms of both quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and principal investment strategies. Further, the Directors recognize that the Advisor has an obligation to monitor trading activities, and in particular to seek the best execution of fund trades, and to evaluate the use of and payment for research. In providing these services, the Advisor utilizes teams of investment professionals who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Fund Performance Review Committee, provides oversight of the investment performance process. It regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Directors also review investment performance information during the management agreement renewal process. If performance concerns are identified, the Board discusses with the Advisor the reasons for such results and any actions being taken to improve performance and may conduct special reviews until performance improves. The Fund’s performance was above its benchmark for the ten-year period and below its benchmark for the one-, three-, and five-year periods reviewed by the Board. In relation to industry peers, the Fund was above the median of its peer performance universe as identified by a third-party service provider for the ten-year period and below the median for the one-, three-, and five-year periods. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
Shareholder and Other Services. Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through its various committees, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction, technology support (including information
32
security), new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund (pre- and post-distribution), and its financial results of operation. The Directors have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the terms of the current management agreement. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is sharing economies of scale, to the extent they exist, through its fee structure, and through reinvestment in its business, infrastructure, investment capabilities and initiatives to provide shareholders enhanced and expanded content and services. The Board also noted that economies of scale are shared with the Fund and its shareholders through management fee breakpoints that serve to reduce the effective management fee as the assets of the Fund grow. Assets of various classes of the same Fund or similarly-managed products are combined with the assets of the Fund to help achieve those breakpoints.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage and other transaction fees and expenses relating to acquisition and disposition of portfolio securities, acquired fund fees and expenses, taxes, interest, extraordinary expenses, fund litigation expenses, fees and expenses of the Fund’s independent Directors (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Investment Company Act Rule 12b-1. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider comparing the Fund’s unified fee to the total expense ratios of its peers. The unified fee charged to shareholders of the Fund was above the median of the total expense ratios of the Fund’s peer expense universe. In addition, the Board reviewed the Fund’s position relative to the narrower set of its expense group peers. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees,
33
costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
Payments to Intermediaries. The Directors also requested and received a description of payments made to intermediaries by the Fund and the Advisor and services provided in response thereto. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund. The Directors reviewed such information and received representations from the Advisor that all such payments by the Fund were made pursuant to the Fund's Rule 12b-1 Plan and that all such payments by the Advisor were made from the Advisor’s resources and reasonable profits.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the possible existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. They concluded that the Advisor’s primary business is managing funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. To the extent there are potential collateral benefits, the Board has been advised and has taken this into consideration in its review of the management contract with the Fund. The Board noted that additional assets from other clients may offer the Advisor some benefit from increased leverage with prospective clients, service providers, and counterparties. Additionally, the Advisor may receive proprietary research from broker-dealers that execute fund portfolio transactions, which the Board concluded is likely to benefit other clients of the Advisor, as well as Fund shareholders. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board concluded that appropriate allocation methodologies had been employed to assign resources and the cost of those resources to these other clients and, where expressly provided, these other client assets may be included with the assets of the Fund to determine breakpoints in the management fee schedule.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Directors. As a result of this process, the Board, including all of the independent Directors, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and received over time, determined that the terms of the management agreement are fair and reasonable and that the management fee charged to the Fund is reasonable in light of the services provided and that the management agreement between the Fund and the Advisor should be renewed for an additional one-year period.
34
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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Other Tax Information
The following information is provided pursuant to provisions of the Internal Revenue Code.
The fund hereby designates up to the maximum amount allowable as qualified dividend income for the fiscal year ended November 30, 2023.
For the fiscal year ended November 30, 2023, the fund intends to pass through to shareholders foreign source income of $5,347,706 and foreign taxes paid of $202,504, or up to the maximum amount allowable, as a foreign tax credit. Foreign source income and foreign tax expense per outstanding share on November 30, 2023 are $0.1077 and $0.0041, respectively.
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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. | ||||||||
©2024 American Century Proprietary Holdings, Inc. All rights reserved. CL-ANN-91032 2401 |
![image5.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image5.jpg)
Annual Report | |||||
November 30, 2023 | |||||
International Small-Mid Cap Fund | |||||
Investor Class (ANTSX) | |||||
G Class (ANTMX) |
The Securities and Exchange Commission (SEC) adopted new rules that will require annual and semiannual reports to transition to a new format known as a Tailored Shareholder Report beginning in July 2024. The amendments will require the transmission of a concise report highlighting key fund information to investors. The detailed financial statements will remain available on our website, will be delivered to investors free of charge upon request, and will continue to be filed with the SEC.
Table of Contents |
Presidents Letter | |||||
Performance | |||||
Portfolio Commentary | |||||
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 | |||||
Report of Independent Registered Public Accounting Firm | |||||
Management | |||||
Approval of Management Agreement | |||||
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 |
![jthomasrev0514a14.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/jthomasrev0514a14.jpg)
Dear Investor:
Thank you for reviewing this annual report for the period ending November 30, 2023. Annual reports help convey important information about fund returns, including market factors that affect performance. For additional investment insights, please visit americancentury.com.
Stocks Rallied Amid Persistent Volatility
Despite ongoing challenges from a variety of sources, global stocks broadly delivered solid gains for the 12-month period. Amid persistent inflation, central banks continued to raise interest rates through much of the fiscal year. Additionally, banking industry turmoil, economic uncertainty and geopolitical unrest added to the volatile backdrop.
Overall, investor expectations for central banks to conclude their rate-hike campaigns fueled optimism. In the first half of the period, inflation’s steady slowdown, a series of bank failures and mounting recession worries prompted investors to regularly recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to lift interest rates through the third quarter of 2023.
By period-end, most central banks had paused their tightening campaigns alongside slower inflation rates and weakening growth data. While many observers believed the pauses indicated an end to the long-standing rate-hike programs, still-above-target inflation prompted policymakers to leave their options open. Nevertheless, financial markets rallied late in the period, convinced central banks would pivot to rate cuts in 2024.
In addition, corporate earnings generally remained better than expected, which also aided stock returns. Overall, most broad global stock indices delivered double-digit gains for the period. Growth stocks were particularly strong and significantly outperformed their value-stock peers. However, among small-cap stocks, the value style outperformed. Emerging markets stocks advanced but notably lagged their developed markets counterparts.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of persistent inflation, tighter financial conditions and recession risk. In addition, the Israel-Hamas war complicates the global backdrop and represents another key consideration for our investment teams.
Our firm has a long history of helping clients weather unpredictable and volatile markets, and we’re determined to meet today’s challenges. Thank you for your trust and confidence in American Century Investments.
With appreciation and respect,
![image48a16a.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image48a16a.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Performance |
Total Returns as of November 30, 2023 | |||||||||||||||||
Average Annual Returns | |||||||||||||||||
Ticker Symbol | 1 year | 5 years | Since Inception | Inception Date | |||||||||||||
Investor Class | ANTSX | -4.23% | 3.86% | 3.71% | 3/19/15 | ||||||||||||
MSCI EAFE Small Cap Index | — | 6.61% | 3.70% | 4.75% | — | ||||||||||||
G Class | ANTMX | -2.92% | 5.35% | 4.87% | 3/19/15 |
Fund returns would have been lower if a portion of the fees had not been waived.
Growth of $10,000 Over Life of Class | ||
$10,000 investment made March 19, 2015 | ||
Performance for other share classes will vary due to differences in fee structure. |
![chart-1eb8bb20b22e4b5c950a.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/chart-1eb8bb20b22e4b5c950a.jpg)
Value on November 30, 2023 | |||||
Investor Class — $13,738 | |||||
MSCI EAFE Small Cap Index — $14,982 | |||||
Ending value of Investor Class would have been lower if a portion of the fees had not been waived.
Total Annual Fund Operating Expenses | |||||
Investor Class | G Class | ||||
1.44% | 1.09% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
3
Portfolio Commentary |
Portfolio Managers: Trevor Gurwich, Federico Laffan and Pratik Patel
Performance Summary
International Small-Mid Cap returned -4.23%* for the 12-month period ended November 30, 2023, underperforming its benchmark, the MSCI EAFE Small Cap Index, which returned 6.61%. The fund’s return reflects operating expenses, while the index’s return does not.
Portfolio Review
Non-U.S. small-capitalization (small-cap) equities delivered positive returns despite periods of volatility, with small- and mid-cap stocks lagging large caps. Equity markets during the period were heavily impacted by the direction and outlook for interest rates globally as opposed to company fundamentals. Value also significantly outperformed growth in non-U.S. small-cap markets. In the short term, macro-driven markets tend to be challenging for our bottom-up approach focused on identifying companies with accelerating and sustainable earnings growth.
Consumer Discretionary Stocks Detracted
Stock selection in the consumer discretionary sector hindered relative performance, as inflation pressures and higher financing rates slowed consumer spending. Relative detractors included Canada-based women’s apparel company Aritzia, which also faced concerns over its elevated inventory levels. We exited the position.
Stock selection in health care also detracted. This was due in part to an investment in Inmode, a provider of minimally invasive surgeries. Inmode’s earnings growth slowed as a weaker economic environment and higher financing costs reduced demand for elective medical procedures.
Elsewhere in the portfolio, HelloFresh was another detractor. The meal delivery company reported weaker revenue growth and a decline in its active customer base. It has also faced capacity constraints and production delays, which led it to reduce its earnings guidance. We sold the position.
Real Estate Was an Area of Strength
The fund benefited from its positioning in the real estate sector, as the fund avoided exposure to several real estate stocks that were notable detractors from index returns.
Top performers among fund holdings included sporting goods company Asics, which reported record sales and healthy earnings growth. The sporting goods company benefited from increased consumer spending in Asia after COVID-19 lockdowns ended.
Elis, another contributor, provides municipal hygiene solutions and commercial services. Investors rewarded the industrial company for its stable earnings growth and its efforts to pay down debt. AIB Group was also a standout performer. The financial services company was a beneficiary of higher interest rates through its net interest income. It also reported improved asset quality.
*All fund returns referenced in this commentary are for Investor Class shares. Fund returns would have been lower if a portion of the fees had not been waived. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the fund’s benchmark, other share classes may not. See page 3 for returns for all share classes.
4
Fund Characteristics |
NOVEMBER 30, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 98.1% | ||||
Exchange-Traded Funds | 1.1% | ||||
Short-Term Investments | 1.5% | ||||
Other Assets and Liabilities | (0.7)% | ||||
Top Five Countries* | % of net assets | ||||
Japan | 29.8% | ||||
United Kingdom | 15.8% | ||||
Canada | 9.6% | ||||
Germany | 6.3% | ||||
France | 6.1% |
*Exposure indicated excludes Exchange-Traded Funds. The Schedule of Investments provides additional information on the fund's portfolio holdings.
5
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 June 1, 2023 to November 30, 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 6/1/23 | Ending Account Value 11/30/23 | Expenses Paid During Period(1) 6/1/23 - 11/30/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $980.00 | $7.15 | 1.44% | ||||||||||
G Class | $1,000 | $987.00 | $0.05 | 0.01% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,017.85 | $7.28 | 1.44% | ||||||||||
G Class | $1,000 | $1,025.02 | $0.05 | 0.01% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
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Schedule of Investments |
NOVEMBER 30, 2023
Shares | Value | |||||||
COMMON STOCKS — 98.1% | ||||||||
Australia — 5.8% | ||||||||
Allkem Ltd.(1) | 138,804 | $ | 786,807 | |||||
CAR Group Ltd. | 391,766 | 7,199,023 | ||||||
NEXTDC Ltd.(1) | 879,067 | 7,548,462 | ||||||
Seven Group Holdings Ltd. | 453,001 | 9,600,906 | ||||||
Steadfast Group Ltd. | 1,312,573 | 4,884,595 | ||||||
30,019,793 | ||||||||
Belgium — 2.1% | ||||||||
Aedifica SA | 47,700 | 2,986,608 | ||||||
D'ieteren Group | 29,377 | 5,019,938 | ||||||
Warehouses De Pauw, CVA | 106,312 | 2,987,512 | ||||||
10,994,058 | ||||||||
Canada — 9.6% | ||||||||
Alamos Gold, Inc., Class A | 395,102 | 5,855,412 | ||||||
Brookfield Infrastructure Corp., Class A | 97,455 | 3,026,952 | ||||||
Capstone Copper Corp.(1) | 995,984 | 4,080,969 | ||||||
Celestica, Inc.(1) | 139,893 | 3,769,106 | ||||||
Colliers International Group, Inc. | 34,117 | 3,550,109 | ||||||
Descartes Systems Group, Inc.(1) | 36,373 | 2,954,444 | ||||||
Finning International, Inc. | 208,452 | 5,301,359 | ||||||
FirstService Corp. | 45,649 | 7,163,241 | ||||||
Kinaxis, Inc.(1) | 32,750 | 3,644,386 | ||||||
SNC-Lavalin Group, Inc.(2) | 189,668 | 5,878,946 | ||||||
Stella-Jones, Inc. | 69,038 | 3,974,537 | ||||||
49,199,461 | ||||||||
Denmark — 0.2% | ||||||||
Jyske Bank A/S(1) | 17,956 | 1,243,201 | ||||||
Finland — 2.1% | ||||||||
Huhtamaki Oyj | 53,030 | 2,054,989 | ||||||
Konecranes Oyj | 110,937 | 4,391,037 | ||||||
Wartsila Oyj Abp | 305,452 | 4,221,033 | ||||||
10,667,059 | ||||||||
France — 6.1% | ||||||||
Alten SA | 19,208 | 2,630,092 | ||||||
Elis SA | 466,000 | 8,985,521 | ||||||
Gaztransport Et Technigaz SA | 42,334 | 5,710,306 | ||||||
SPIE SA | 230,225 | 6,741,508 | ||||||
Technip Energies NV | 199,598 | 4,655,791 | ||||||
Ubisoft Entertainment SA(1) | 85,236 | 2,426,009 | ||||||
31,149,227 | ||||||||
Germany — 6.3% | ||||||||
AIXTRON SE | 99,717 | 3,631,389 | ||||||
CTS Eventim AG & Co. KGaA | 79,587 | 5,459,224 | ||||||
Gerresheimer AG | 45,594 | 4,320,149 | ||||||
Hugo Boss AG | 93,070 | 6,523,369 | ||||||
KION Group AG | 72,200 | 2,632,922 | ||||||
Redcare Pharmacy NV(1) | 40,887 | 5,771,052 |
7
Shares | Value | |||||||
Scout24 SE | 55,572 | $ | 3,872,268 | |||||
32,210,373 | ||||||||
Ireland — 1.0% | ||||||||
AIB Group PLC | 879,147 | 4,076,206 | ||||||
Glanbia PLC | 75,735 | 1,280,904 | ||||||
5,357,110 | ||||||||
Israel — 3.0% | ||||||||
CyberArk Software Ltd.(1) | 33,181 | 6,611,978 | ||||||
Inmode Ltd.(1) | 111,930 | 2,658,338 | ||||||
Nova Ltd.(1) | 47,694 | 6,133,925 | ||||||
15,404,241 | ||||||||
Italy — 2.1% | ||||||||
BPER Banca | 1,763,958 | 6,600,259 | ||||||
Interpump Group SpA | 51,749 | 2,411,179 | ||||||
Tod's SpA(1)(2) | 57,002 | 2,068,963 | ||||||
11,080,401 | ||||||||
Japan — 29.8% | ||||||||
Amvis Holdings, Inc. | 207,900 | 4,037,176 | ||||||
Asics Corp. | 259,600 | 9,303,670 | ||||||
Coca-Cola Bottlers Japan Holdings, Inc. | 344,600 | 4,725,142 | ||||||
Fukuoka Financial Group, Inc. | 303,200 | 7,070,124 | ||||||
Hoshizaki Corp. | 116,100 | 3,697,450 | ||||||
Internet Initiative Japan, Inc. | 240,400 | 4,314,375 | ||||||
Invincible Investment Corp. | 11,518 | 4,664,454 | ||||||
Japan Airport Terminal Co. Ltd. | 61,900 | 2,715,323 | ||||||
Kansai Paint Co. Ltd. | 371,800 | 5,641,233 | ||||||
Kotobuki Spirits Co. Ltd. | 331,300 | 5,250,574 | ||||||
MatsukiyoCocokara & Co. | 308,900 | 5,336,454 | ||||||
Mebuki Financial Group, Inc. | 842,400 | 2,541,616 | ||||||
Money Forward, Inc.(1) | 49,200 | 1,505,023 | ||||||
Morinaga & Co. Ltd. | 127,500 | 4,544,767 | ||||||
Nakanishi, Inc. | 64,600 | 1,048,180 | ||||||
Nifco, Inc. | 203,000 | 4,965,555 | ||||||
Nippon Gas Co. Ltd. | 275,800 | 4,168,556 | ||||||
Organo Corp. | 130,800 | 5,367,418 | ||||||
Penta-Ocean Construction Co. Ltd. | 661,400 | 3,631,273 | ||||||
Rohto Pharmaceutical Co. Ltd. | 275,200 | 5,757,833 | ||||||
Ryohin Keikaku Co. Ltd. | 427,000 | 6,748,818 | ||||||
Sankyo Co. Ltd. | 139,900 | 6,039,268 | ||||||
Sanrio Co. Ltd.(2) | 118,900 | 4,867,927 | ||||||
Santen Pharmaceutical Co. Ltd. | 138,600 | 1,313,914 | ||||||
Socionext, Inc. | 25,300 | 2,262,088 | ||||||
Taiheiyo Cement Corp. | 276,700 | 5,200,674 | ||||||
TechnoPro Holdings, Inc. | 217,400 | 5,056,117 | ||||||
Tokyo Ohka Kogyo Co. Ltd. | 61,800 | 3,822,613 | ||||||
Tokyo Seimitsu Co. Ltd. | 63,700 | 3,687,280 | ||||||
Toyo Suisan Kaisha Ltd. | 61,700 | 3,292,243 | ||||||
Toyo Tire Corp. | 520,800 | 8,663,951 | ||||||
Usen-Next Holdings Co. Ltd. | 241,800 | 6,179,800 | ||||||
UT Group Co. Ltd.(1) | 93,500 | 1,400,008 | ||||||
Yamazaki Baking Co. Ltd. | 192,200 | 4,206,682 | ||||||
153,027,579 |
8
Shares | Value | |||||||
Norway — 2.1% | ||||||||
Aker Solutions ASA | 838,672 | $ | 3,167,237 | |||||
Seadrill Ltd.(1) | 112,019 | 4,971,403 | ||||||
Storebrand ASA | 293,889 | 2,541,545 | ||||||
10,680,185 | ||||||||
Singapore — 0.5% | ||||||||
Keppel DC REIT | 1,796,100 | 2,468,552 | ||||||
Spain — 2.6% | ||||||||
Bankinter SA(2) | 181,008 | 1,273,547 | ||||||
Fluidra SA(2) | 64,601 | 1,336,977 | ||||||
Indra Sistemas SA(2) | 366,585 | 5,663,579 | ||||||
Sacyr SA | 1,544,216 | 5,187,495 | ||||||
13,461,598 | ||||||||
Sweden — 3.4% | ||||||||
Munters Group AB | 415,115 | 5,817,392 | ||||||
Saab AB, B Shares | 98,822 | 5,078,471 | ||||||
Sinch AB(1)(2) | 868,729 | 2,472,035 | ||||||
Trelleborg AB, B Shares | 125,344 | 3,890,470 | ||||||
17,258,368 | ||||||||
Switzerland — 4.4% | ||||||||
Flughafen Zurich AG | 27,384 | 5,803,014 | ||||||
Interroll Holding AG | 452 | 1,294,647 | ||||||
PSP Swiss Property AG | 56,778 | 7,492,153 | ||||||
Swissquote Group Holding SA | 13,491 | 3,076,153 | ||||||
Ypsomed Holding AG | 15,016 | 5,224,638 | ||||||
22,890,605 | ||||||||
United Kingdom — 15.8% | ||||||||
B&M European Value Retail SA | 1,053,035 | 7,641,082 | ||||||
Balfour Beatty PLC | 628,280 | 2,587,437 | ||||||
Bellway PLC | 196,044 | 5,747,476 | ||||||
Bytes Technology Group PLC | 553,525 | 3,792,232 | ||||||
ConvaTec Group PLC | 955,923 | 2,714,857 | ||||||
Diploma PLC | 141,330 | 6,009,484 | ||||||
Games Workshop Group PLC | 37,468 | 5,076,345 | ||||||
Greggs PLC | 106,350 | 3,301,742 | ||||||
Howden Joinery Group PLC | 276,917 | 2,568,456 | ||||||
Indivior PLC(1) | 62,950 | 1,024,906 | ||||||
Intermediate Capital Group PLC | 350,278 | 6,943,040 | ||||||
Man Group PLC | 963,929 | 2,553,381 | ||||||
Melrose Industries PLC | 1,188,593 | 7,803,651 | ||||||
Rightmove PLC | 335,081 | 2,311,260 | ||||||
Spectris PLC | 91,616 | 3,896,067 | ||||||
Tritax Big Box REIT PLC | 4,186,092 | 8,120,330 | ||||||
UNITE Group PLC | 249,029 | 3,062,992 | ||||||
Weir Group PLC | 247,464 | 5,865,620 | ||||||
81,020,358 | ||||||||
United States — 1.2% | ||||||||
TechnipFMC PLC | 304,917 | 6,317,880 | ||||||
TOTAL COMMON STOCKS (Cost $452,504,035) | 504,450,049 | |||||||
EXCHANGE-TRADED FUNDS — 1.1% | ||||||||
iShares MSCI EAFE Small-Cap ETF (Cost $5,132,245) | 93,562 | 5,478,991 |
9
Shares | Value | |||||||
SHORT-TERM INVESTMENTS — 1.5% | ||||||||
Money Market Funds — 1.3% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 2,565 | $ | 2,565 | |||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) | 6,632,746 | 6,632,746 | ||||||
6,635,311 | ||||||||
Repurchase Agreements — 0.2% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.625%, 7/31/29, valued at $129,449), in a joint trading account at 5.30%, dated 11/30/23, due 12/1/23 (Delivery value $126,882) | 126,863 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.875%, 4/15/29, valued at $987,412), at 5.30%, dated 11/30/23, due 12/1/23 (Delivery value $968,143) | 968,000 | |||||||
1,094,863 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $7,730,174) | 7,730,174 | |||||||
TOTAL INVESTMENT SECURITIES — 100.7% (Cost $465,366,454) | 517,659,214 | |||||||
OTHER ASSETS AND LIABILITIES — (0.7)% | (3,646,913) | |||||||
TOTAL NET ASSETS — 100.0% | $ | 514,012,301 |
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Industrials | 24.4% | ||||
Consumer Discretionary | 14.8% | ||||
Information Technology | 11.7% | ||||
Financials | 8.3% | ||||
Real Estate | 8.3% | ||||
Consumer Staples | 7.8% | ||||
Communication Services | 6.2% | ||||
Materials | 6.1% | ||||
Energy | 4.8% | ||||
Health Care | 4.3% | ||||
Utilities | 1.4% | ||||
Exchange-Traded Funds | 1.1% | ||||
Short-Term Investments | 1.5% | ||||
Other Assets and Liabilities | (0.7)% |
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
CVA | – | Certificaten Van Aandelen |
(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 $18,078,626. 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 $19,137,830, which includes securities collateral of $12,505,084.
See Notes to Financial Statements.
10
Statement of Assets and Liabilities |
NOVEMBER 30, 2023 | |||||
Assets | |||||
Investment securities, at value (cost of $458,733,708) — including $18,078,626 of securities on loan | $ | 511,026,468 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $6,632,746) | 6,632,746 | ||||
Total investment securities, at value (cost of $465,366,454) | 517,659,214 | ||||
Foreign currency holdings, at value (cost of $12,264) | 12,185 | ||||
Receivable for investments sold | 7,217,720 | ||||
Receivable for capital shares sold | 12,849 | ||||
Dividends and interest receivable | 1,633,264 | ||||
Securities lending receivable | 1,498 | ||||
526,536,730 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 6,632,746 | ||||
Payable for investments purchased | 5,736,675 | ||||
Payable for capital shares redeemed | 56,676 | ||||
Accrued management fees | 93,641 | ||||
Accrued other expenses | 4,691 | ||||
12,524,429 | |||||
Net Assets | $ | 514,012,301 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 575,461,685 | |||
Distributable earnings (loss) | (61,449,384) | ||||
$ | 514,012,301 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | |||||||||
Investor Class, $0.01 Par Value | $82,246,693 | 9,324,377 | $8.82 | ||||||||
G Class, $0.01 Par Value | $431,765,608 | 47,437,918 | $9.10 |
See Notes to Financial Statements.
11
Statement of Operations |
YEAR ENDED NOVEMBER 30, 2023 | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $982,555) | $ | 8,915,490 | |||
Interest | 218,250 | ||||
Securities lending, net | 196,800 | ||||
9,330,540 | |||||
Expenses: | |||||
Management fees | 5,779,578 | ||||
Directors' fees and expenses | 16,914 | ||||
Other expenses | 7,797 | ||||
5,804,289 | |||||
Fees waived(1) | (4,568,910) | ||||
1,235,379 | |||||
Net investment income (loss) | 8,095,161 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | (45,418,281) | ||||
Foreign currency translation transactions | 63,523 | ||||
(45,354,758) | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 22,845,035 | ||||
Translation of assets and liabilities in foreign currencies | 26,696 | ||||
22,871,731 | |||||
Net realized and unrealized gain (loss) | (22,483,027) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (14,387,866) |
(1)Amount consists of $23,027 and $4,545,883 for Investor Class and G Class, respectively.
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
YEARS ENDED NOVEMBER 30, 2023 AND NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | November 30, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 8,095,161 | $ | 6,507,109 | ||||
Net realized gain (loss) | (45,354,758) | (70,619,846) | ||||||
Change in net unrealized appreciation (depreciation) | 22,871,731 | (70,502,122) | ||||||
Net increase (decrease) in net assets resulting from operations | (14,387,866) | (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) | 62,229,419 | 171,552,738 | ||||||
Net increase (decrease) in net assets | 45,023,203 | (67,726,966) | ||||||
Net Assets | ||||||||
Beginning of period | 468,989,098 | 536,716,064 | ||||||
End of period | $ | 514,012,301 | $ | 468,989,098 |
See Notes to Financial Statements.
13
Notes to Financial Statements |
NOVEMBER 30, 2023
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.
14
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 November 30, 2023.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 6,632,746 | — | — | — | $ | 6,632,746 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 6,632,746 |
(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, 52% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that 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. From December 1, 2022 through July 31, 2023, the investment advisor agreed to waive 0.04% of the fund's management fee. Effective August 1, 2023, the investment advisor terminated the waiver. 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.
16
The annual management fee and the effective annual management fee after waiver for each class for the period ended November 30, 2023 are as follows:
Annual Management Fee * | Effective Annual Management Fee After Waiver | |||||||
Investor Class | 1.43% | 1.43% | ||||||
G Class | 1.08% | 0.00% |
*Prior to August 1, 2023, the annual management fee was 1.47% for the Investor Class and 1.12% for the G Class.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund's officers do not receive compensation from the fund.
Other Expenses — A fund’s other expenses may include interest charges, clearing exchange fees, proxy solicitation expenses, fees associated with the recovery of foreign tax reclaims and other miscellaneous expenses.
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 November 30, 2023 were $673,524,247 and $601,173,383, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Year ended November 30, 2023 | Year ended November 30, 2022 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 120,000,000 | 120,000,000 | ||||||||||||
Sold | 851,862 | $ | 7,722,842 | 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) | ||||||||||
773,975 | 7,002,675 | 1,490,823 | 17,875,595 | |||||||||||
G Class/Shares Authorized | 500,000,000 | 300,000,000 | ||||||||||||
Sold | 8,197,516 | 75,190,723 | 6,809,526 | 73,340,355 | ||||||||||
Issued in reinvestment of distributions | 303,048 | 2,818,350 | 7,000,315 | 85,753,857 | ||||||||||
Redeemed | (2,416,150) | (22,782,329) | (545,593) | (5,417,069) | ||||||||||
6,084,414 | 55,226,744 | 13,264,248 | 153,677,143 | |||||||||||
Net increase (decrease) | 6,858,389 | $ | 62,229,419 | 14,755,071 | $ | 171,552,738 |
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6. Fair Value Measurements
The fund's investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund's portfolio holdings.
Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||
Investment Securities | |||||||||||
Common Stocks | |||||||||||
Canada | $ | 10,190,193 | $ | 39,009,268 | — | ||||||
Israel | 15,404,241 | — | — | ||||||||
Norway | 4,971,403 | 5,708,782 | — | ||||||||
United States | 6,317,880 | — | — | ||||||||
Other Countries | — | 422,848,282 | — | ||||||||
Exchange-Traded Funds | 5,478,991 | — | — | ||||||||
Short-Term Investments | 6,635,311 | 1,094,863 | — | ||||||||
$ | 48,998,019 | $ | 468,661,195 | — |
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.
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8. Federal Tax Information
On December 19, 2023, the fund declared and paid the following per-share distributions from net investment income to shareholders of record on December 18, 2023:
Investor Class | G Class | ||||
$0.1018 | $0.2031 |
The tax character of distributions paid during the years ended November 30, 2023 and November 30, 2022 were as follows:
2023 | 2022 | |||||||
Distributions Paid From | ||||||||
Ordinary income | $ | 2,818,350 | $ | 42,562,714 | ||||
Long-term capital gains | — | $ | 62,102,131 |
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 federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments | $ | 472,806,313 | |||
Gross tax appreciation of investments | $ | 52,537,034 | |||
Gross tax depreciation of investments | (7,684,133) | ||||
Net tax appreciation (depreciation) of investments | 44,852,901 | ||||
Net tax appreciation (depreciation) on translation of assets and liabilities in foreign currencies | (2) | ||||
Net tax appreciation (depreciation) | $ | 44,852,899 | |||
Undistributed ordinary income | $ | 10,290,379 | |||
Accumulated short-term capital losses | $ | (116,592,662) |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
Accumulated capital losses 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 | $9.21 | 0.04 | (0.43) | (0.39) | — | — | — | $8.82 | (4.23)% | 1.43% | 1.46% | 0.45% | 0.42% | 123% | $82,247 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | $9.44 | 0.18 | (0.45) | (0.27) | (0.07) | — | (0.07) | $9.10 | (2.92)% | 0.00% | 1.11% | 1.88% | 0.77% | 123% | $431,766 | ||||||||||||||||||||||||||||||||
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 |
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.
*The amount shown for a share outstanding throughout the period may not correlate with the Statement(s) of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of a fund in relation to income earned and/or fluctuations in the fair value of a fund's investments.
See Notes to Financial Statements.
Report of Independent Registered Public Accounting Firm |
To the Shareholders of the International Small-Mid Cap Fund and the Board of Directors of American Century World Mutual Funds, Inc.
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of International Small-Mid Cap Fund (the “Fund”), one of the funds constituting the American Century World Mutual Funds, Inc., as of November 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of International Small-Mid Cap Fund of the American Century World Mutual Funds, Inc. as of November 30, 2023, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Kansas City, Missouri
January 17, 2024
We have served as the auditor of one or more American Century investment companies since 1997.
22
Management |
The Board of Directors
The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire on December 31 of the year in which they reach their 75th birthday.
Jonathan S. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Brian Bulatao (1964) | Director | Since 2022 | Chief Administrative Officer, Activision Blizzard, Inc. (2021 to present); Under Secretary of State for Management, U.S. Department of State (2018 to 2021); Chief Operating Officer, Central Intelligence Agency (2017 to 2018) | 65 | None | ||||||||||||
Thomas W. Bunn (1953) | Director | Since 2017 | Retired | 65 | None | ||||||||||||
Chris H. Cheesman (1962) | Director | Since 2019 | Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018) | 65 | Alleghany Corporation (2021 to 2022) | ||||||||||||
Barry Fink (1955) | Director | Since 2012 (independent since 2016) | Retired | 65 | None | ||||||||||||
Rajesh K. Gupta (1960) | Director | Since 2019 | Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019) | 65 | None |
23
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Lynn Jenkins (1963) | Director | Since 2019 | Consultant, LJ Strategies (2019 to present); United States Representative, U.S. House of Representatives (2009 to 2018) | 65 | MGP Ingredients, Inc. (2019 to 2021) | ||||||||||||
Jan M. Lewis (1957) | Director and Board Chair | Since 2011 (Board Chair since 2022) | Retired | 65 | None | ||||||||||||
Gary C. Meltzer (1963) | Director | Since 2022 | Advisor, Pontoro (2021 to present); Executive Advisor, Consultant and Investor, Harris Ariel Advisory LLC (2020 to present); Managing Partner, PricewaterhouseCoopers LLP (1985 to 2020) | 65 | ExcelFin Acquisition Corp., Apollo Realty Income Solutions, Inc. | ||||||||||||
Stephen E. Yates(1) (1948) | Director | Since 2012 | Retired | 118 | None | ||||||||||||
Interested Director | |||||||||||||||||
Jonathan S. Thomas (1963) | Director | Since 2007 | President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Director, ACC and other ACC subsidiaries | 150 | None |
(1) Effective December 31, 2023, Steven E. Yates retired from the Board of Directors.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.
24
Officers
The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for each of the 16 investment companies in the American Century family of funds. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Offices with the Funds | Principal Occupation(s) During the Past Five Years | ||||||
Patrick Bannigan (1965) | President since 2019 | Executive Vice President and Director, ACC (2012 to present); Chief Financial Officer, Chief Accounting Officer and Treasurer, ACC (2015 to present). Also serves as President, ACS; Vice President, ACIM; Chief Financial Officer, Chief Accounting Officer and/or Director, ACIM, ACS and other ACC subsidiaries | ||||||
R. Wes Campbell (1974) | Chief Financial Officer and Treasurer since 2018; Vice President since 2023 | Vice President, ACS, (2020 to present); Investment Operations and Investment Accounting, ACS (2000 to present) | ||||||
Amy D. Shelton (1964) | Chief Compliance Officer and Vice President since 2014 | Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present). Also serves as Vice President, ACIS | ||||||
John Pak (1968) | General Counsel and Senior Vice President since 2021 | General Counsel and Senior Vice President, ACC (2021 to present). Also serves as General Counsel and Senior Vice President, ACIM, ACS and ACIS. Chief Legal Officer of Investment and Wealth Management, The Bank of New York Mellon (2014 to 2021) | ||||||
Cihan Kasikara (1974) | Vice President since 2023 | Senior Vice President, ACS (2022 to present); Treasurer, ACS (2023 to present); Vice President, ACS (2020 to 2022); Vice President, Franklin Templeton (2015 to 2020) | ||||||
Kathleen Gunja Nelson (1976) | Vice President since 2023 | Vice President, ACS (2017 to present) | ||||||
Ward D. Stauffer (1960) | Secretary since 2005 | Attorney, ACC (2003 to present) |
25
Approval of Management Agreement |
At a meeting held on June 28, 2023, the Fund’s Board of Directors (the "Board") unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under the Investment Company Act of 1940 (the “Investment Company Act”), contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s Directors, including a majority of the independent Directors.
Prior to its consideration of the renewal of the management agreement, the Directors requested and reviewed data and information compiled by the Advisor and certain independent data providers concerning the Fund. This review was in addition to the oversight and evaluation undertaken by the Board and its committees on a continual basis and the information received was supplemental to the information that the Board and its committees receive and consider over time.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor and its affiliates included, but was not limited to
•the nature, extent, and quality of investment management, shareholder services, distribution services, and other services provided to the Fund;
•the wide range of programs and services the Advisor and other service providers provide to the Fund and its shareholders on a routine and non-routine basis;
•the Fund’s investment performance compared to appropriate benchmarks and/or peer groups of other mutual funds with similar investment objectives and strategies;
•the cost of owning the Fund compared to the cost of owning similarly-managed funds;
•the Advisor’s compliance policies, procedures, and regulatory experience and those of certain other service providers;
•the Advisor’s strategic plans, generally, and with respect to areas of heightened regulatory interest in the mutual fund industry and certain recent geopolitical and other issues;
•the Advisor’s business continuity plans, vendor management practices, and information security practices;
•the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the Advisor’s financial results of operation;
•possible economies of scale associated with the Advisor’s management of the Fund;
•any collateral benefits derived by the Advisor from the management of the Fund;
•fees and expenses associated with any investment by the Fund in other funds;
•payments to intermediaries by the Fund and the Advisor and services provided by intermediaries in connection therewith; and
•services provided and charges to the Advisor's other investment management clients.
The Board held two meetings to consider the renewal. The independent Directors also met in private session multiple times to review and discuss the information provided in response to their request. The independent Directors held active discussions with the Advisor regarding the renewal of the management agreement, requesting supplemental information, and reviewing information provided by the Advisor in response thereto. The independent Directors had the benefit of the advice of their independent counsel throughout the process.
Factors Considered
The Directors considered all of the information provided by the Advisor, the independent data providers, and independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Directors did not identify any single factor as being all-important or controlling, and each Director may have attributed different levels of importance to different factors.
26
In deciding to renew the management agreement, the Board based its decision on a number of factors, including without limitation the following:
Nature, Extent and Quality of Services — Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that the Advisor provides or arranges at its own expense a wide variety of services which include, without limitation, the following:
•constructing and designing the Fund
•portfolio research and security selection
•initial capitalization/funding
•securities trading
•Fund administration
•custody of Fund assets
•daily valuation of the Fund’s portfolio
•liquidity monitoring and management
•risk management, including information security
•shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications
•legal services (except the independent Directors’ counsel)
•regulatory and portfolio compliance
•financial reporting
•marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans)
The Board noted that many of these services have expanded over time in terms of both quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and principal investment strategies. Further, the Directors recognize that the Advisor has an obligation to monitor trading activities, and in particular to seek the best execution of fund trades, and to evaluate the use of and payment for research. In providing these services, the Advisor utilizes teams of investment professionals who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Fund Performance Review Committee, provides oversight of the investment performance process. It regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Directors also review investment performance information during the management agreement renewal process. If performance concerns are identified, the Board discusses with the Advisor the reasons for such results and any actions being taken to improve performance and may conduct special reviews until performance improves. The Fund’s performance was above its benchmark for the three- and five-year periods and below its benchmark for the one-year period reviewed by the Board. In relation to industry peers, the Fund was above the median of its peer performance universe as identified by a third-party service provider for the three-year period and below the median for the one- and five-year periods. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
Shareholder and Other Services. Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through its various committees, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction, technology support (including information security), new products and services offered to Fund shareholders, securities trading activities,
27
portfolio valuation services, auditing services, and legal and operational compliance activities. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund (pre- and post-distribution), and its financial results of operation. The Directors have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the terms of the current management agreement. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is sharing economies of scale, to the extent they exist, through its fee structure, and through reinvestment in its business, infrastructure, investment capabilities and initiatives to provide shareholders enhanced and expanded content and services.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage and other transaction fees and expenses relating to acquisition and disposition of portfolio securities, acquired fund fees and expenses, taxes, interest, extraordinary expenses, fund litigation expenses, fees and expenses of the Fund’s independent Directors (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Investment Company Act Rule 12b-1. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider comparing the Fund’s unified fee to the total expense ratios of its peers. The unified fee charged to shareholders of the Fund was above the median of the total expense ratios of the Fund’s peer expense universe. In addition, the Board reviewed the Fund’s position relative to the narrower set of its expense group peers. The Board and the Advisor agreed to a permanent reduction of the Fund's annual unified management fee of 0.04% (e.g., the Investor Class unified fee will be reduced from 1.47% to 1.43%) beginning August 1, 2023. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this
28
information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
Payments to Intermediaries. The Directors also requested and received a description of payments made to intermediaries by the Fund and the Advisor and services provided in response thereto. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund. The Directors reviewed such information and received representations from the Advisor that all such payments by the Fund were made pursuant to the Fund's Rule 12b-1 Plan and that all such payments by the Advisor were made from the Advisor’s resources and reasonable profits.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the possible existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. They concluded that the Advisor’s primary business is managing funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. To the extent there are potential collateral benefits, the Board has been advised and has taken this into consideration in its review of the management contract with the Fund. The Board noted that additional assets from other clients may offer the Advisor some benefit from increased leverage with prospective clients, service providers, and counterparties. Additionally, the Advisor may receive proprietary research from broker-dealers that execute fund portfolio transactions, which the Board concluded is likely to benefit other clients of the Advisor, as well as Fund shareholders. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board concluded that appropriate allocation methodologies had been employed to assign resources and the cost of those resources to these other clients.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Directors. As a result of this process, the Board, including all of the independent Directors, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and received over time, determined that the terms of the management agreement are fair and reasonable and that the management fee charged to the Fund is reasonable in light of the services provided and that the management agreement between the Fund and the Advisor should be renewed for an additional one-year period.
29
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.
30
Other Tax Information
The following information is provided pursuant to provisions of the Internal Revenue Code.
The fund hereby designates up to the maximum amount allowable as qualified dividend income for the fiscal year ended November 30, 2023.
For the fiscal year ended November 30, 2023, the fund intends to pass through to shareholders foreign source income of $7,939,873 and foreign taxes paid of $640,781, or up to the maximum amount allowable, as a foreign tax credit. Foreign source income and foreign tax expense per outstanding share on November 30, 2023 are $0.1399 and $0.0113, respectively.
31
Notes |
32
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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. | ||||||||
©2024 American Century Proprietary Holdings, Inc. All rights reserved. CL-ANN-91025 2401 |
![image5.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image5.jpg)
Annual Report | |||||
November 30, 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) |
The Securities and Exchange Commission (SEC) adopted new rules that will require annual and semiannual reports to transition to a new format known as a Tailored Shareholder Report beginning in July 2024. The amendments will require the transmission of a concise report highlighting key fund information to investors. The detailed financial statements will remain available on our website, will be delivered to investors free of charge upon request, and will continue to be filed with the SEC.
Table of Contents |
President’s Letter | |||||
Performance | |||||
Portfolio Commentary | |||||
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 | |||||
Report of Independent Registered Public Accounting Firm | |||||
Management | |||||
Approval of Management Agreement | |||||
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 |
![jthomasrev0514a14.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/jthomasrev0514a14.jpg)
Dear Investor:
Thank you for reviewing this annual report for the period ending November 30, 2023. Annual reports help convey important information about fund returns, including market factors that affect performance. For additional investment insights, please visit americancentury.com.
Stocks Rallied Amid Persistent Volatility
Despite ongoing challenges from a variety of sources, global stocks broadly delivered solid gains for the 12-month period. Amid persistent inflation, central banks continued to raise interest rates through much of the fiscal year. Additionally, banking industry turmoil, economic uncertainty and geopolitical unrest added to the volatile backdrop.
Overall, investor expectations for central banks to conclude their rate-hike campaigns fueled optimism. In the first half of the period, inflation’s steady slowdown, a series of bank failures and mounting recession worries prompted investors to regularly recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to lift interest rates through the third quarter of 2023.
By period-end, most central banks had paused their tightening campaigns alongside slower inflation rates and weakening growth data. While many observers believed the pauses indicated an end to the long-standing rate-hike programs, still-above-target inflation prompted policymakers to leave their options open. Nevertheless, financial markets rallied late in the period, convinced central banks would pivot to rate cuts in 2024.
In addition, corporate earnings generally remained better than expected, which also aided stock returns. Overall, most broad global stock indices delivered double-digit gains for the period. Growth stocks were particularly strong and significantly outperformed their value-stock peers. However, among small-cap stocks, the value style outperformed. Emerging markets stocks advanced but notably lagged their developed markets counterparts.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of persistent inflation, tighter financial conditions and recession risk. In addition, the Israel-Hamas war complicates the global backdrop and represents another key consideration for our investment teams.
Our firm has a long history of helping clients weather unpredictable and volatile markets, and we’re determined to meet today’s challenges. Thank you for your trust and confidence in American Century Investments.
With appreciation and respect,
![image48a16a.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image48a16a.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Performance |
Total Returns as of November 30, 2023 | ||||||||||||||||||||
Average Annual Returns | ||||||||||||||||||||
Ticker Symbol | 1 year | 5 years | 10 years | Since Inception | Inception Date | |||||||||||||||
Investor Class | ACEVX | 13.64% | 5.14% | 2.27% | — | 4/3/06 | ||||||||||||||
MSCI EAFE Value Index | — | 14.84% | 5.01% | 2.81% | — | — | ||||||||||||||
I Class | ACVUX | 13.82% | 5.34% | 2.47% | — | 4/3/06 | ||||||||||||||
A Class | MEQAX | 3/31/97 | ||||||||||||||||||
No sales charge | 13.35% | 4.86% | 2.01% | — | ||||||||||||||||
With sales charge | 6.83% | 3.63% | 1.41% | — | ||||||||||||||||
C Class | ACCOX | 12.55% | 4.09% | 1.26% | — | 4/3/06 | ||||||||||||||
R Class | ACVRX | 13.09% | 4.61% | 1.75% | — | 4/3/06 | ||||||||||||||
R6 Class | ACVDX | 14.08% | 5.52% | 2.64% | — | 7/26/13 | ||||||||||||||
G Class | ACAFX | 15.02% | — | — | 4.27% | 4/1/22 |
Average annual returns since inception are presented when ten years of performance history is not available.
Fund returns would have been lower if a portion of the fees had not been waived.
C Class shares will automatically convert to A Class shares after being held for approximately eight years. C Class average annual returns do not reflect this conversion.
Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
3
Growth of $10,000 Over 10 Years | ||
$10,000 investment made November 30, 2013 | ||
Performance for other share classes will vary due to differences in fee structure. |
![chart-7473b7e628e64c66b7ca.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/chart-7473b7e628e64c66b7ca.jpg)
Value on November 30, 2023 | |||||
Investor Class — $12,512 | |||||
MSCI EAFE Value Index — $13,194 | |||||
Total Annual Fund Operating Expenses | ||||||||||||||||||||
Investor Class | I Class | A Class | C Class | R Class | R6 Class | G Class | ||||||||||||||
1.14% | 0.94% | 1.39% | 2.14% | 1.64% | 0.79% | 0.79% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
4
Portfolio Commentary |
Portfolio Managers: Stephen Quance, Yulin Long and Arun Daniel
Stephen Quance joined the management team during the reporting period.
Performance Summary
International Value rose 13.64%* for the fiscal year ended November 30, 2023, compared with the 14.84% return of its benchmark, the MSCI EAFE Value Index. Fund results reflect operating expenses, while benchmark returns do not.
Stock selections in the materials, communication services and energy sectors detracted most from the fund’s relative returns. Selection decisions made in the industrials and consumer discretionary sectors contributed most to relative performance.
Materials, Communication Services and Energy Detracted from Performance
In the materials sector, stock selection in the chemicals and metals and mining industries was a top detractor from performance. Shares of ICL Group and Yara International—both fertilizer manufacturers—declined steadily through the period due in part to declining volumes and prices for products such as potash. We sold out of our position in ICL Group. In the metals and mining industry, Anglo American was the leading detractor. The company reported weaker results due largely to macroeconomic headwinds and weaker product prices. We exited this position during the period.
In the communication services sector, stock selections in the wireless telecommunication services and diversified telecommunication services industries were the primary hindrance to performance. The fund’s position in Vodafone Group, a U.K.-based provider of mobile and landline phone service, hurt relative returns as the company saw earnings decline over much of the period due to price competition.
Stock selection also hampered performance in the energy sector, particularly in the oil, gas and consumable fuels industry. Shares of OMV, a multinational petrochemical company based in Austria, and Aker BP, an exploration and production company based in Norway, declined as revenues fell along with oil prices. We retained our position in OMV but sold our holdings of Aker BP.
Industrials and Consumer Discretionary Contributed to Relative Results
Allocation and stock selection contributed to outperformance in the industrials sector. A position in Mitsubishi, a Japan-based conglomerate, benefited from the company’s healthy revenue and income growth as well as an announced stock buyback program amounting to 6% of outstanding shares. In the building products industry, shares of Cie de Saint-Gobain, a French manufacturer of a variety of building materials, performed well especially toward the end of the reporting period, assisted by an expected record high in operating margins and accelerated share buybacks.
In the consumer discretionary sector, H & M Hennes & Mauritz, a Swedish clothing retailer, rose during much of the period, driven by sales growth and improving operating margins. Barratt Developments, a U.K.-based homebuilder, experienced some volatility but posted strong returns late in the period as the Bank of England opted to leave its policy rate unchanged and home prices showed some improvement after months of declines.
*All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the fund’s benchmark, other share classes may not. See page 3 for returns for all share classes.
5
Fund Characteristics |
NOVEMBER 30, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 98.5% | ||||
Short-Term Investments | 1.4% | ||||
Other Assets and Liabilities | 0.1% | ||||
Top Five Countries | % of net assets | ||||
Japan | 21.8% | ||||
United Kingdom | 20.2% | ||||
France | 10.8% | ||||
Germany | 8.3% | ||||
Australia | 7.3% |
6
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 June 1, 2023 to November 30, 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.
7
Beginning Account Value 6/1/23 | Ending Account Value 11/30/23 | Expenses Paid During Period(1) 6/1/23 - 11/30/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,090.70 | $5.82 | 1.11% | ||||||||||
I Class | $1,000 | $1,092.20 | $4.77 | 0.91% | ||||||||||
A Class | $1,000 | $1,090.10 | $7.13 | 1.36% | ||||||||||
C Class | $1,000 | $1,086.50 | $11.04 | 2.11% | ||||||||||
R Class | $1,000 | $1,087.80 | $8.43 | 1.61% | ||||||||||
R6 Class | $1,000 | $1,093.50 | $3.99 | 0.76% | ||||||||||
G Class | $1,000 | $1,098.40 | $0.05 | 0.01% | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,019.50 | $5.62 | 1.11% | ||||||||||
I Class | $1,000 | $1,020.51 | $4.61 | 0.91% | ||||||||||
A Class | $1,000 | $1,018.25 | $6.88 | 1.36% | ||||||||||
C Class | $1,000 | $1,014.49 | $10.66 | 2.11% | ||||||||||
R Class | $1,000 | $1,017.00 | $8.14 | 1.61% | ||||||||||
R6 Class | $1,000 | $1,021.26 | $3.85 | 0.76% | ||||||||||
G Class | $1,000 | $1,025.02 | $0.05 | 0.01% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 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.
8
Schedule of Investments |
NOVEMBER 30, 2023
Shares | Value | |||||||
COMMON STOCKS — 98.5% | ||||||||
Australia — 7.3% | ||||||||
ANZ Group Holdings Ltd. | 824,626 | $ | 13,265,147 | |||||
BHP Group Ltd. | 959,434 | 29,207,490 | ||||||
BlueScope Steel Ltd. | 461,993 | 6,337,321 | ||||||
Fortescue Metals Group Ltd. | 890,413 | 14,621,377 | ||||||
Origin Energy Ltd. | 2,916,091 | 15,908,784 | ||||||
Rio Tinto Ltd. | 30,295 | 2,487,382 | ||||||
Sonic Healthcare Ltd. | 503,497 | 9,743,178 | ||||||
South32 Ltd. | 3,409,695 | 6,853,342 | ||||||
Westpac Banking Corp. | 60,976 | 859,984 | ||||||
Woodside Energy Group Ltd. | 323,818 | 6,579,124 | ||||||
105,863,129 | ||||||||
Austria — 1.4% | ||||||||
Erste Group Bank AG | 431,303 | 17,442,512 | ||||||
OMV AG | 60,444 | 2,580,883 | ||||||
20,023,395 | ||||||||
Belgium — 0.6% | ||||||||
Ageas SA | 196,234 | 8,451,335 | ||||||
Canada — 3.7% | ||||||||
Brookfield Asset Management Ltd., Class A(1) | 171,015 | 5,987,636 | ||||||
Cenovus Energy, Inc. | 268,488 | 4,762,523 | ||||||
Great-West Lifeco, Inc.(1) | 300,086 | 9,591,164 | ||||||
Manulife Financial Corp. | 583,396 | 11,427,588 | ||||||
Nutrien Ltd. | 66,806 | 3,573,293 | ||||||
Power Corp. of Canada | 493,543 | 13,657,496 | ||||||
Suncor Energy, Inc. | 153,669 | 5,066,621 | ||||||
54,066,321 | ||||||||
Denmark — 0.8% | ||||||||
AP Moller - Maersk A/S, B Shares | 7,160 | 11,305,685 | ||||||
Finland — 0.3% | ||||||||
Nokia Oyj | 1,163,032 | 4,079,171 | ||||||
France — 10.8% | ||||||||
ArcelorMittal SA | 120,997 | 3,041,994 | ||||||
AXA SA | 106,546 | 3,322,146 | ||||||
BNP Paribas SA | 151,420 | 9,519,324 | ||||||
Cie de Saint-Gobain SA | 275,302 | 17,948,568 | ||||||
Credit Agricole SA | 1,409,880 | 18,477,317 | ||||||
Engie SA | 1,229,534 | 21,336,233 | ||||||
Gecina SA | 40,853 | 4,523,499 | ||||||
L'Oreal SA | 15,759 | 7,405,015 | ||||||
Publicis Groupe SA | 150,892 | 12,751,406 | ||||||
Sanofi SA | 57,111 | 5,326,453 | ||||||
Societe Generale SA | 700,846 | 17,637,897 | ||||||
TotalEnergies SE | 499,376 | 34,037,092 | ||||||
155,326,944 | ||||||||
Germany — 8.3% | ||||||||
Allianz SE | 121,564 | 30,566,261 | ||||||
BASF SE | 281,244 | 13,082,746 |
9
Shares | Value | |||||||
Commerzbank AG | 593,668 | $ | 7,267,444 | |||||
Deutsche Post AG | 247,541 | 11,631,716 | ||||||
E.ON SE | 1,562,756 | 20,312,817 | ||||||
Evonik Industries AG | 119,614 | 2,236,849 | ||||||
Henkel AG & Co. KGaA, Preference Shares | 53,221 | 4,186,920 | ||||||
Mercedes-Benz Group AG | 62,728 | 4,078,533 | ||||||
RWE AG | 168,103 | 7,205,602 | ||||||
Siemens AG | 113,555 | 19,075,265 | ||||||
119,644,153 | ||||||||
Hong Kong — 2.6% | ||||||||
CK Asset Holdings Ltd. | 1,583,000 | 7,496,104 | ||||||
CK Hutchison Holdings Ltd. | 1,803,000 | 9,045,690 | ||||||
Link REIT | 435,100 | 2,148,885 | ||||||
Power Assets Holdings Ltd. | 1,585,500 | 8,271,123 | ||||||
Sun Hung Kai Properties Ltd. | 598,000 | 5,863,193 | ||||||
Swire Pacific Ltd., Class A | 825,500 | 5,349,844 | ||||||
38,174,839 | ||||||||
Israel — 0.3% | ||||||||
Nice Ltd.(2) | 22,541 | 4,278,748 | ||||||
Italy — 5.0% | ||||||||
Assicurazioni Generali SpA | 570,561 | 11,816,140 | ||||||
Enel SpA | 1,530,448 | 10,815,432 | ||||||
Intesa Sanpaolo SpA | 8,564,403 | 24,687,718 | ||||||
Mediobanca Banca di Credito Finanziario SpA | 436,120 | 5,119,483 | ||||||
Stellantis NV | 935,942 | 20,342,131 | ||||||
72,780,904 | ||||||||
Japan — 21.8% | ||||||||
Astellas Pharma, Inc. | 614,900 | 7,494,318 | ||||||
Canon, Inc.(1) | 451,100 | 11,622,389 | ||||||
Dai-ichi Life Holdings, Inc. | 168,500 | 3,532,367 | ||||||
Dentsu Group, Inc.(1) | 286,700 | 7,722,760 | ||||||
Honda Motor Co. Ltd. | 2,244,000 | 22,953,731 | ||||||
Inpex Corp. | 1,193,600 | 16,467,412 | ||||||
ITOCHU Corp.(1) | 548,000 | 21,304,819 | ||||||
Japan Post Bank Co. Ltd. | 680,000 | 6,706,622 | ||||||
Japan Post Holdings Co. Ltd. | 893,600 | 7,895,232 | ||||||
KDDI Corp. | 89,400 | 2,792,683 | ||||||
Marubeni Corp. | 812,400 | 12,696,101 | ||||||
Mitsubishi Chemical Group Corp. | 707,500 | 4,639,215 | ||||||
Mitsubishi Corp. | 562,700 | 26,237,712 | ||||||
Mitsubishi Electric Corp. | 513,800 | 6,959,911 | ||||||
Mitsui & Co. Ltd. | 586,800 | 21,398,831 | ||||||
Mizuho Financial Group, Inc. | 605,100 | 10,268,349 | ||||||
MS&AD Insurance Group Holdings, Inc. | 270,300 | 10,177,169 | ||||||
Nintendo Co. Ltd. | 16,700 | 778,427 | ||||||
NIPPON EXPRESS HOLDINGS, Inc. | 110,000 | 6,000,526 | ||||||
Nippon Yusen KK(1) | 622,400 | 16,763,919 | ||||||
ORIX Corp. | 579,000 | 10,577,765 | ||||||
Otsuka Holdings Co. Ltd. | 186,800 | 7,205,888 | ||||||
Panasonic Holdings Corp. | 487,400 | 5,022,221 | ||||||
Sompo Holdings, Inc. | 37,000 | 1,697,316 | ||||||
SUMCO Corp. | 634,100 | 9,487,311 |
10
Shares | Value | |||||||
Sumitomo Corp. | 388,800 | $ | 8,151,712 | |||||
Sumitomo Mitsui Financial Group, Inc. | 433,200 | 21,312,336 | ||||||
Takeda Pharmaceutical Co. Ltd. | 284,600 | 8,067,821 | ||||||
Tokyo Gas Co. Ltd. | 270,900 | 6,280,854 | ||||||
Toyota Motor Corp. | 662,300 | 12,574,324 | ||||||
314,790,041 | ||||||||
Netherlands — 3.2% | ||||||||
ABN AMRO Bank NV, CVA | 92,731 | 1,246,244 | ||||||
ING Groep NV | 879,689 | 12,358,735 | ||||||
Koninklijke Ahold Delhaize NV | 609,762 | 17,658,415 | ||||||
Randstad NV | 246,507 | 14,665,983 | ||||||
45,929,377 | ||||||||
Norway — 2.0% | ||||||||
DNB Bank ASA | 118,967 | 2,267,968 | ||||||
Equinor ASA | 357,678 | 11,427,548 | ||||||
Norsk Hydro ASA | 703,643 | 4,085,910 | ||||||
Telenor ASA | 199,929 | 2,151,671 | ||||||
Yara International ASA | 240,616 | 8,162,951 | ||||||
28,096,048 | ||||||||
Singapore — 1.1% | ||||||||
Singapore Telecommunications Ltd. | 2,529,100 | 4,357,766 | ||||||
Wilmar International Ltd. | 4,459,000 | 12,096,876 | ||||||
16,454,642 | ||||||||
Spain — 4.7% | ||||||||
Banco Bilbao Vizcaya Argentaria SA | 2,565,240 | 23,880,496 | ||||||
Banco Santander SA | 2,590,215 | 10,737,037 | ||||||
Endesa SA | 493,799 | 10,328,858 | ||||||
Iberdrola SA | 144,851 | 1,790,212 | ||||||
Industria de Diseno Textil SA | 247,351 | 10,206,945 | ||||||
Repsol SA | 449,736 | 6,905,848 | ||||||
Telefonica SA | 870,614 | 3,754,306 | ||||||
67,603,702 | ||||||||
Sweden — 1.4% | ||||||||
H & M Hennes & Mauritz AB, B Shares | 991,940 | 15,887,241 | ||||||
Kinnevik AB, Class B(2) | 491,583 | 4,598,892 | ||||||
20,486,133 | ||||||||
Switzerland — 3.0% | ||||||||
Avolta AG(2) | 77,720 | 2,715,089 | ||||||
Novartis AG | 325,283 | 31,750,305 | ||||||
Roche Holding AG | 27,111 | 7,293,428 | ||||||
Sandoz Group AG(2) | 65,056 | 1,858,000 | ||||||
43,616,822 | ||||||||
United Kingdom — 20.2% | ||||||||
3i Group PLC | 180,587 | 5,107,476 | ||||||
abrdn PLC | 1,724,738 | 3,559,861 | ||||||
Barclays PLC | 10,253,998 | 18,333,974 | ||||||
Barratt Developments PLC | 2,444,118 | 15,892,557 | ||||||
BP PLC | 4,899,745 | 29,788,805 | ||||||
CRH PLC | 163,804 | 10,278,701 | ||||||
Glencore PLC | 2,655,908 | 14,857,649 | ||||||
GSK PLC | 849,221 | 15,258,331 | ||||||
HSBC Holdings PLC | 2,428,952 | 18,553,305 |
11
Shares | Value | |||||||
J Sainsbury PLC | 4,154,105 | $ | 15,010,931 | |||||
Kingfisher PLC | 3,998,903 | 11,100,086 | ||||||
Land Securities Group PLC | 228,065 | 1,800,384 | ||||||
Legal & General Group PLC | 3,771,834 | 10,961,699 | ||||||
Lloyds Banking Group PLC | 4,523,871 | 2,493,949 | ||||||
NatWest Group PLC | 4,742,527 | 12,476,684 | ||||||
Persimmon PLC | 569,205 | 9,018,518 | ||||||
Rio Tinto PLC | 294,056 | 20,098,029 | ||||||
Shell PLC | 812,069 | 26,249,977 | ||||||
St. James's Place PLC | 323,132 | 2,652,639 | ||||||
Standard Chartered PLC | 783,057 | 6,482,263 | ||||||
Taylor Wimpey PLC | 5,995,779 | 9,827,294 | ||||||
Tesco PLC | 4,813,075 | 17,394,470 | ||||||
Vodafone Group PLC | 13,076,725 | 11,758,158 | ||||||
WPP PLC | 368,590 | 3,294,491 | ||||||
292,250,231 | ||||||||
TOTAL COMMON STOCKS (Cost $1,260,090,452) | 1,423,221,620 | |||||||
SHORT-TERM INVESTMENTS — 1.4% | ||||||||
Money Market Funds — 0.6% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 22,412 | 22,412 | ||||||
State Street Navigator Securities Lending Government Money Market Portfolio(3) | 9,528,476 | 9,528,476 | ||||||
9,550,888 | ||||||||
Repurchase Agreements — 0.8% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.625%, 7/31/29, valued at $1,311,801), in a joint trading account at 5.30%, dated 11/30/23, due 12/1/23 (Delivery value $1,285,780) | 1,285,591 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.25%, 8/15/27, valued at $10,009,268), at 5.30%, dated 11/30/23, due 12/1/23 (Delivery value $9,814,445) | 9,813,000 | |||||||
11,098,591 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $20,649,479) | 20,649,479 | |||||||
TOTAL INVESTMENT SECURITIES — 99.9% (Cost $1,280,739,931) | 1,443,871,099 | |||||||
OTHER ASSETS AND LIABILITIES — 0.1% | 1,295,822 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 1,445,166,921 |
12
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Financials | 28.8% | ||||
Industrials | 14.1% | ||||
Energy | 10.0% | ||||
Materials | 9.9% | ||||
Consumer Discretionary | 9.7% | ||||
Utilities | 7.1% | ||||
Health Care | 6.5% | ||||
Consumer Staples | 5.1% | ||||
Communication Services | 3.4% | ||||
Information Technology | 2.0% | ||||
Real Estate | 1.9% | ||||
Short-Term Investments | 1.4% | ||||
Other Assets and Liabilities | 0.1% |
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
CVA | – | Certificaten Van Aandelen |
(1)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $23,554,008. 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 $24,817,000, which includes securities collateral of $15,288,524.
See Notes to Financial Statements.
13
Statement of Assets and Liabilities |
NOVEMBER 30, 2023 | |||||
Assets | |||||
Investment securities, at value (cost of $1,271,211,455) — including $23,554,008 of securities on loan | $ | 1,434,342,623 | |||
Investment made with cash collateral received for securities on loan, at value (cost of $9,528,476) | 9,528,476 | ||||
Total investment securities, at value (cost of $1,280,739,931) | 1,443,871,099 | ||||
Foreign currency holdings, at value (cost of $52,441) | 52,107 | ||||
Receivable for capital shares sold | 51,231 | ||||
Dividends and interest receivable | 11,557,211 | ||||
Securities lending receivable | 65,517 | ||||
1,455,597,165 | |||||
Liabilities | |||||
Payable for collateral received for securities on loan | 9,528,476 | ||||
Payable for capital shares redeemed | 614,628 | ||||
Accrued management fees | 212,542 | ||||
Distribution and service fees payable | 1,685 | ||||
Accrued other expenses | 72,913 | ||||
10,430,244 | |||||
Net Assets | $ | 1,445,166,921 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 1,415,639,858 | |||
Distributable earnings (loss) | 29,527,063 | ||||
$ | 1,445,166,921 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $186,765,815 | 22,490,801 | $8.30 | ||||||||
I Class, $0.01 Par Value | $55,583,164 | 6,702,415 | $8.29 | ||||||||
A Class, $0.01 Par Value | $6,359,463 | 761,609 | $8.35 | ||||||||
C Class, $0.01 Par Value | $328,772 | 39,661 | $8.29 | ||||||||
R Class, $0.01 Par Value | $412,701 | 49,707 | $8.30 | ||||||||
R6 Class, $0.01 Par Value | $919,395 | 110,834 | $8.30 | ||||||||
G Class, $0.01 Par Value | $1,194,797,611 | 142,821,552 | $8.37 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except A Class, for which the maximum offering price per share was $8.86 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of A Class and C Class.
See Notes to Financial Statements.
14
Statement of Operations |
YEAR ENDED NOVEMBER 30, 2023 | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $7,876,136) | $ | 69,903,772 | |||
Securities lending, net | 934,586 | ||||
Interest | 576,454 | ||||
71,414,812 | |||||
Expenses: | |||||
Management fees | 11,402,974 | ||||
Distribution and service fees: | |||||
A Class | 14,685 | ||||
C Class | 3,211 | ||||
R Class | 3,062 | ||||
Directors' fees and expenses | 48,262 | ||||
Other expenses | 151,630 | ||||
11,623,824 | |||||
Fees waived - G Class | (8,552,919) | ||||
3,070,905 | |||||
Net investment income (loss) | 68,343,907 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | 20,655,138 | ||||
Foreign currency translation transactions | (793,944) | ||||
19,861,194 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 109,116,179 | ||||
Translation of assets and liabilities in foreign currencies | 7,806 | ||||
109,123,985 | |||||
Net realized and unrealized gain (loss) | 128,985,179 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 197,329,086 |
See Notes to Financial Statements.
15
Statement of Changes in Net Assets |
YEARS ENDED NOVEMBER 30, 2023 AND NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | November 30, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 68,343,907 | $ | 44,915,521 | ||||
Net realized gain (loss) | 19,861,194 | (110,037,725) | ||||||
Change in net unrealized appreciation (depreciation) | 109,123,985 | 21,921,974 | ||||||
Net increase (decrease) in net assets resulting from operations | 197,329,086 | (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) | (31,753,133) | 1,299,648,521 | ||||||
Net increase (decrease) in net assets | 121,653,405 | 1,253,023,425 | ||||||
Net Assets | ||||||||
Beginning of period | 1,323,513,516 | 70,490,091 | ||||||
End of period | $ | 1,445,166,921 | $ | 1,323,513,516 |
See Notes to Financial Statements.
16
Notes to Financial Statements |
NOVEMBER 30, 2023
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.
17
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.
18
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 November 30, 2023.
Remaining Contractual Maturity of Agreements | |||||||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |||||||||||||
Securities Lending Transactions(1) | |||||||||||||||||
Common Stocks | $ | 9,528,476 | — | — | — | $ | 9,528,476 | ||||||||||
Gross amount of recognized liabilities for securities lending transactions | $ | 9,528,476 |
(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, 50% 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%.
19
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 November 30, 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.
Other Expenses — A fund’s other expenses may include interest charges, clearing exchange fees, proxy solicitation expenses, fees associated with the recovery of foreign tax reclaims and other miscellaneous expenses.
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 November 30, 2023 were $1,075,114,690 and $1,103,426,769, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Year ended November 30, 2023 | Year ended November 30, 2022(1) | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 500,000,000 | 280,000,000 | ||||||||||||
Sold | 894,111 | $ | 6,952,626 | 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 | (7,105,614) | (57,002,444) | (990,344) | (7,470,698) | ||||||||||
(5,502,137) | (44,878,540) | 26,221,859 | 204,844,584 | |||||||||||
I Class/Shares Authorized | 100,000,000 | 40,000,000 | ||||||||||||
Sold | 1,427,983 | 11,224,745 | 2,201,111 | 16,118,089 | ||||||||||
Issued in reinvestment of distributions | 185,361 | 1,347,573 | 285,829 | 2,345,524 | ||||||||||
Redeemed | (1,833,240) | (14,350,344) | (1,169,113) | (8,828,294) | ||||||||||
(219,896) | (1,778,026) | 1,317,827 | 9,635,319 | |||||||||||
A Class/Shares Authorized | 25,000,000 | 30,000,000 | ||||||||||||
Sold | 97,914 | 757,861 | 40,645 | 296,546 | ||||||||||
Issued in reinvestment of distributions | 17,125 | 125,866 | 33,420 | 277,341 | ||||||||||
Redeemed | (86,860) | (685,997) | (101,701) | (774,855) | ||||||||||
28,179 | 197,730 | (27,636) | (200,968) | |||||||||||
C Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 1,826 | 14,651 | 1,457 | 11,252 | ||||||||||
Issued in reinvestment of distributions | 925 | 6,798 | 2,898 | 24,071 | ||||||||||
Redeemed | (13,697) | (102,669) | (41,469) | (322,106) | ||||||||||
(10,946) | (81,220) | (37,114) | (286,783) | |||||||||||
R Class/Shares Authorized | 25,000,000 | 25,000,000 | ||||||||||||
Sold | 34,064 | 266,406 | 26,779 | 207,175 | ||||||||||
Issued in reinvestment of distributions | 1,528 | 11,197 | 4,288 | 35,501 | ||||||||||
Redeemed | (89,153) | (680,082) | (34,390) | (283,856) | ||||||||||
(53,561) | (402,479) | (3,323) | (41,180) | |||||||||||
R6 Class/Shares Authorized | 30,000,000 | 40,000,000 | ||||||||||||
Sold | 14,846 | 114,980 | 27,230 | 211,421 | ||||||||||
Issued in reinvestment of distributions | 2,903 | 21,073 | 4,941 | 40,515 | ||||||||||
Redeemed | (10,660) | (81,333) | (22,473) | (181,360) | ||||||||||
7,089 | 54,720 | 9,698 | 70,576 | |||||||||||
G Class/Shares Authorized | 1,750,000,000 | 925,000,000 | ||||||||||||
Sold | 24,815,675 | 190,331,839 | 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 | (27,331,085) | (212,426,587) | (10,154,422) | (74,997,769) | ||||||||||
2,605,557 | 15,134,682 | 140,215,995 | 1,085,626,973 | |||||||||||
Net increase (decrease) | (3,145,715) | $ | (31,753,133) | 167,697,306 | $ | 1,299,648,521 |
(1)April 1, 2022 (commencement of sale) through November 30, 2022 for the G Class.
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6. Fair Value Measurements
The fund's investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund's portfolio holdings.
Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||
Investment Securities | |||||||||||
Common Stocks | $ | 10,278,701 | $ | 1,412,942,919 | — | ||||||
Short-Term Investments | 9,550,888 | 11,098,591 | — | ||||||||
$ | 19,829,589 | $ | 1,424,041,510 | — |
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.
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8. Federal Tax Information
On December 19, 2023, the fund declared and paid the following per-share distributions from net investment income to shareholders of record on December 18, 2023:
Investor Class | I Class | A Class | C Class | R Class | R6 Class | G Class | ||||||||||||||
$0.3808 | $0.3978 | $0.3595 | $0.2957 | $0.3383 | $0.4106 | $0.4744 |
The tax character of distributions paid during the years ended November 30, 2023 and November 30, 2022 were as follows:
2023 | 2022 | |||||||
Distributions Paid From | ||||||||
Ordinary income | $ | 43,922,548 | $ | 3,424,866 | ||||
Long-term capital gains | — | — |
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 federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments | $ | 1,296,361,951 | |||
Gross tax appreciation of investments | $ | 202,415,819 | |||
Gross tax depreciation of investments | (54,906,671) | ||||
Net tax appreciation (depreciation) of investments | 147,509,148 | ||||
Net tax appreciation (depreciation) on translation of assets and liabilities in foreign currencies | (13,936) | ||||
Net tax appreciation (depreciation) | $ | 147,495,212 | |||
Undistributed ordinary income | $ | 77,821,375 | |||
Accumulated short-term capital losses | $ | (177,309,602) | |||
Accumulated long-term capital losses | $ | (18,479,922) |
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.
Accumulated capital losses 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 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.
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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.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations*: | Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $7.49 | 0.32 | 0.68 | 1.00 | (0.19) | $8.30 | 13.64% | 1.11% | 1.11% | 3.96% | 3.96% | 77% | $186,766 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
I Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $7.48 | 0.33 | 0.68 | 1.01 | (0.20) | $8.29 | 13.82% | 0.91% | 0.91% | 4.16% | 4.16% | 77% | $55,583 | ||||||||||||||||||||||||||||
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 |
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 | $7.54 | 0.30 | 0.68 | 0.98 | (0.17) | $8.35 | 13.35% | 1.36% | 1.36% | 3.71% | 3.71% | 77% | $6,359 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
C Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $7.50 | 0.23 | 0.69 | 0.92 | (0.13) | $8.29 | 12.55% | 2.11% | 2.11% | 2.96% | 2.96% | 77% | $329 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $7.50 | 0.28 | 0.68 | 0.96 | (0.16) | $8.30 | 13.09% | 1.61% | 1.61% | 3.46% | 3.46% | 77% | $413 | ||||||||||||||||||||||||||||
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 |
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) | |||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $7.48 | 0.35 | 0.67 | 1.02 | (0.20) | $8.30 | 14.08% | 0.76% | 0.76% | 4.31% | 4.31% | 77% | $919 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||
2023 | $7.52 | 0.40 | 0.69 | 1.09 | (0.24) | $8.37 | 15.02% | 0.01% | 0.76% | 5.06% | 4.31% | 77% | $1,194,798 | ||||||||||||||||||||||||||||
2022(3) | $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%(5) | $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)April 1, 2022 (commencement of sale) through November 30, 2022.
(4)Annualized.
(5)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(s) of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of a fund in relation to income earned and/or fluctuations in the fair value of a fund's investments.
See Notes to Financial Statements.
Report of Independent Registered Public Accounting Firm |
To the Shareholders of the International Value Fund and the Board of Directors of American Century World Mutual Funds, Inc.
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of International Value Fund (the “Fund”), one of the funds constituting the American Century World Mutual Funds, Inc., as of November 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of International Value Fund of the American Century World Mutual Funds, Inc. as of November 30, 2023, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Kansas City, Missouri
January 17, 2024
We have served as the auditor of one or more American Century investment companies since 1997.
29
Management |
The Board of Directors
The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire on December 31 of the year in which they reach their 75th birthday.
Jonathan S. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Brian Bulatao (1964) | Director | Since 2022 | Chief Administrative Officer, Activision Blizzard, Inc. (2021 to present); Under Secretary of State for Management, U.S. Department of State (2018 to 2021); Chief Operating Officer, Central Intelligence Agency (2017 to 2018) | 65 | None | ||||||||||||
Thomas W. Bunn (1953) | Director | Since 2017 | Retired | 65 | None | ||||||||||||
Chris H. Cheesman (1962) | Director | Since 2019 | Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018) | 65 | Alleghany Corporation (2021 to 2022) | ||||||||||||
Barry Fink (1955) | Director | Since 2012 (independent since 2016) | Retired | 65 | None | ||||||||||||
Rajesh K. Gupta (1960) | Director | Since 2019 | Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019) | 65 | None |
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Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Lynn Jenkins (1963) | Director | Since 2019 | Consultant, LJ Strategies (2019 to present); United States Representative, U.S. House of Representatives (2009 to 2018) | 65 | MGP Ingredients, Inc. (2019 to 2021) | ||||||||||||
Jan M. Lewis (1957) | Director and Board Chair | Since 2011 (Board Chair since 2022) | Retired | 65 | None | ||||||||||||
Gary C. Meltzer (1963) | Director | Since 2022 | Advisor, Pontoro (2021 to present); Executive Advisor, Consultant and Investor, Harris Ariel Advisory LLC (2020 to present); Managing Partner, PricewaterhouseCoopers LLP (1985 to 2020) | 65 | ExcelFin Acquisition Corp., Apollo Realty Income Solutions, Inc. | ||||||||||||
Stephen E. Yates(1) (1948) | Director | Since 2012 | Retired | 118 | None | ||||||||||||
Interested Director | |||||||||||||||||
Jonathan S. Thomas (1963) | Director | Since 2007 | President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Director, ACC and other ACC subsidiaries | 150 | None |
(1) Effective December 31, 2023, Steven E. Yates retired from the Board of Directors.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.
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Officers
The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for each of the 16 investment companies in the American Century family of funds. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Offices with the Funds | Principal Occupation(s) During the Past Five Years | ||||||
Patrick Bannigan (1965) | President since 2019 | Executive Vice President and Director, ACC (2012 to present); Chief Financial Officer, Chief Accounting Officer and Treasurer, ACC (2015 to present). Also serves as President, ACS; Vice President, ACIM; Chief Financial Officer, Chief Accounting Officer and/or Director, ACIM, ACS and other ACC subsidiaries | ||||||
R. Wes Campbell (1974) | Chief Financial Officer and Treasurer since 2018; Vice President since 2023 | Vice President, ACS, (2020 to present); Investment Operations and Investment Accounting, ACS (2000 to present) | ||||||
Amy D. Shelton (1964) | Chief Compliance Officer and Vice President since 2014 | Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present). Also serves as Vice President, ACIS | ||||||
John Pak (1968) | General Counsel and Senior Vice President since 2021 | General Counsel and Senior Vice President, ACC (2021 to present). Also serves as General Counsel and Senior Vice President, ACIM, ACS and ACIS. Chief Legal Officer of Investment and Wealth Management, The Bank of New York Mellon (2014 to 2021) | ||||||
Cihan Kasikara (1974) | Vice President since 2023 | Senior Vice President, ACS (2022 to present); Treasurer, ACS (2023 to present); Vice President, ACS (2020 to 2022); Vice President, Franklin Templeton (2015 to 2020) | ||||||
Kathleen Gunja Nelson (1976) | Vice President since 2023 | Vice President, ACS (2017 to present) | ||||||
Ward D. Stauffer (1960) | Secretary since 2005 | Attorney, ACC (2003 to present) |
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Approval of Management Agreement |
At a meeting held on June 28, 2023, the Fund’s Board of Directors (the "Board") unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under the Investment Company Act of 1940 (the “Investment Company Act”), contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s Directors, including a majority of the independent Directors.
Prior to its consideration of the renewal of the management agreement, the Directors requested and reviewed data and information compiled by the Advisor and certain independent data providers concerning the Fund. This review was in addition to the oversight and evaluation undertaken by the Board and its committees on a continual basis and the information received was supplemental to the information that the Board and its committees receive and consider over time.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor and its affiliates included, but was not limited to
•the nature, extent, and quality of investment management, shareholder services, distribution services, and other services provided to the Fund;
•the wide range of programs and services the Advisor and other service providers provide to the Fund and its shareholders on a routine and non-routine basis;
•the Fund’s investment performance compared to appropriate benchmarks and/or peer groups of other mutual funds with similar investment objectives and strategies;
•the cost of owning the Fund compared to the cost of owning similarly-managed funds;
•the Advisor’s compliance policies, procedures, and regulatory experience and those of certain other service providers;
•the Advisor’s strategic plans, generally, and with respect to areas of heightened regulatory interest in the mutual fund industry and certain recent geopolitical and other issues;
•the Advisor’s business continuity plans, vendor management practices, and information security practices;
•the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the Advisor’s financial results of operation;
•possible economies of scale associated with the Advisor’s management of the Fund;
•any collateral benefits derived by the Advisor from the management of the Fund;
•fees and expenses associated with any investment by the Fund in other funds;
•payments to intermediaries by the Fund and the Advisor and services provided by intermediaries in connection therewith; and
•services provided and charges to the Advisor's other investment management clients.
The Board held two meetings to consider the renewal. The independent Directors also met in private session multiple times to review and discuss the information provided in response to their request. The independent Directors held active discussions with the Advisor regarding the renewal of the management agreement, requesting supplemental information, and reviewing information provided by the Advisor in response thereto. The independent Directors had the benefit of the advice of their independent counsel throughout the process.
Factors Considered
The Directors considered all of the information provided by the Advisor, the independent data providers, and independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Directors did not identify any single factor as being all-important or controlling, and each Director may have attributed different levels of importance to different factors.
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In deciding to renew the management agreement, the Board based its decision on a number of factors, including without limitation the following:
Nature, Extent and Quality of Services — Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that the Advisor provides or arranges at its own expense a wide variety of services which include, without limitation, the following:
•constructing and designing the Fund
•portfolio research and security selection
•initial capitalization/funding
•securities trading
•Fund administration
•custody of Fund assets
•daily valuation of the Fund’s portfolio
•liquidity monitoring and management
•risk management, including information security
•shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications
•legal services (except the independent Directors’ counsel)
•regulatory and portfolio compliance
•financial reporting
•marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans)
The Board noted that many of these services have expanded over time in terms of both quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and principal investment strategies. Further, the Directors recognize that the Advisor has an obligation to monitor trading activities, and in particular to seek the best execution of fund trades, and to evaluate the use of and payment for research. In providing these services, the Advisor utilizes teams of investment professionals who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Fund Performance Review Committee, provides oversight of the investment performance process. It regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Directors also review investment performance information during the management agreement renewal process. If performance concerns are identified, the Board discusses with the Advisor the reasons for such results and any actions being taken to improve performance and may conduct special reviews until performance improves. The Fund’s performance was above its benchmark for the three-, five-, and ten-year periods and below its benchmark for the one-year period reviewed by the Board. In relation to industry peers, the Fund was below the median of its peer performance universe as identified by a third-party service provider for the one-, three-, five-, and ten-year periods. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
Shareholder and Other Services. Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through its various committees, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction, technology support (including information security), new products and services offered to Fund shareholders, securities trading activities,
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portfolio valuation services, auditing services, and legal and operational compliance activities. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund (pre- and post-distribution), and its financial results of operation. The Directors have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the terms of the current management agreement. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is sharing economies of scale, to the extent they exist, through its fee structure, and through reinvestment in its business, infrastructure, investment capabilities and initiatives to provide shareholders enhanced and expanded content and services.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage and other transaction fees and expenses relating to acquisition and disposition of portfolio securities, acquired fund fees and expenses, taxes, interest, extraordinary expenses, fund litigation expenses, fees and expenses of the Fund’s independent Directors (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Investment Company Act Rule 12b-1. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider comparing the Fund’s unified fee to the total expense ratios of its peers. The unified fee charged to shareholders of the Fund was below the median of the total expense ratios of the Fund’s peer expense universe. In addition, the Board reviewed the Fund’s position relative to the narrower set of its expense group peers. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
35
Payments to Intermediaries. The Directors also requested and received a description of payments made to intermediaries by the Fund and the Advisor and services provided in response thereto. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund. The Directors reviewed such information and received representations from the Advisor that all such payments by the Fund were made pursuant to the Fund's Rule 12b-1 Plan and that all such payments by the Advisor were made from the Advisor’s resources and reasonable profits.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the possible existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. They concluded that the Advisor’s primary business is managing funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. To the extent there are potential collateral benefits, the Board has been advised and has taken this into consideration in its review of the management contract with the Fund. The Board noted that additional assets from other clients may offer the Advisor some benefit from increased leverage with prospective clients, service providers, and counterparties. Additionally, the Advisor may receive proprietary research from broker-dealers that execute fund portfolio transactions, which the Board concluded is likely to benefit other clients of the Advisor, as well as Fund shareholders. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board concluded that appropriate allocation methodologies had been employed to assign resources and the cost of those resources to these other clients.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Directors. As a result of this process, the Board, including all of the independent Directors, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and received over time, determined that the terms of the management agreement are fair and reasonable and that the management fee charged to the Fund is reasonable in light of the services provided and that the management agreement between the Fund and the Advisor should be renewed for an additional one-year period.
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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.
37
Other Tax Information
The following information is provided pursuant to provisions of the Internal Revenue Code.
The fund hereby designates up to the maximum amount allowable as qualified dividend income for the fiscal year ended November 30, 2023.
For the fiscal year ended November 30, 2023, the fund intends to pass through to shareholders foreign source income of $58,801,203 and foreign taxes paid of $4,561,274, or up to the maximum amount allowable, as a foreign tax credit. Foreign source income and foreign tax expense per outstanding share on November 30, 2023 are $0.3399 and $0.0264, respectively.
38
Notes |
39
Notes |
40
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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. | ||||||||
©2024 American Century Proprietary Holdings, Inc. All rights reserved. CL-ANN-91029 2401 |
![image5.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image5.jpg)
Annual Report | |||||
November 30, 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) |
The Securities and Exchange Commission (SEC) adopted new rules that will require annual and semiannual reports to transition to a new format known as a Tailored Shareholder Report beginning in July 2024. The amendments will require the transmission of a concise report highlighting key fund information to investors. The detailed financial statements will remain available on our website, will be delivered to investors free of charge upon request, and will continue to be filed with the SEC.
Table of Contents |
President’s Letter | |||||
Performance | |||||
Portfolio Commentary | |||||
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 | |||||
Report of Independent Registered Public Accounting Firm | |||||
Management | |||||
Approval of Management Agreement | |||||
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 |
![jthomasrev0514a14.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/jthomasrev0514a14.jpg)
Dear Investor:
Thank you for reviewing this annual report for the period ending November 30, 2023. Annual reports help convey important information about fund returns, including market factors that affect performance. For additional investment insights, please visit americancentury.com.
Stocks Rallied Amid Persistent Volatility
Despite ongoing challenges from a variety of sources, global stocks broadly delivered solid gains for the 12-month period. Amid persistent inflation, central banks continued to raise interest rates through much of the fiscal year. Additionally, banking industry turmoil, economic uncertainty and geopolitical unrest added to the volatile backdrop.
Overall, investor expectations for central banks to conclude their rate-hike campaigns fueled optimism. In the first half of the period, inflation’s steady slowdown, a series of bank failures and mounting recession worries prompted investors to regularly recalibrate their monetary policy outlooks. However, with inflation still higher than central bank targets, policymakers continued to lift interest rates through the third quarter of 2023.
By period-end, most central banks had paused their tightening campaigns alongside slower inflation rates and weakening growth data. While many observers believed the pauses indicated an end to the long-standing rate-hike programs, still-above-target inflation prompted policymakers to leave their options open. Nevertheless, financial markets rallied late in the period, convinced central banks would pivot to rate cuts in 2024.
In addition, corporate earnings generally remained better than expected, which also aided stock returns. Overall, most broad global stock indices delivered double-digit gains for the period. Growth stocks were particularly strong and significantly outperformed their value-stock peers. However, among small-cap stocks, the value style outperformed. Emerging markets stocks advanced but notably lagged their developed markets counterparts.
Remaining Diligent in Uncertain Times
We expect market volatility to linger as investors navigate a complex environment of persistent inflation, tighter financial conditions and recession risk. In addition, the Israel-Hamas war complicates the global backdrop and represents another key consideration for our investment teams.
Our firm has a long history of helping clients weather unpredictable and volatile markets, and we’re determined to meet today’s challenges. Thank you for your trust and confidence in American Century Investments.
With appreciation and respect,
![image48a16a.jpg](https://capedge.com/proxy/N-CSR/0000872825-24-000002/image48a16a.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Performance |
Total Returns as of November 30, 2023 | ||||||||||||||
Average Annual Returns | ||||||||||||||
Ticker Symbol | 1 year | Since Inception | Inception Date | |||||||||||
Investor Class | ANTUX | 15.84% | 2.66% | 12/6/18 | ||||||||||
MSCI ACWI ex-U.S. Index | — | 9.26% | 5.61% | — | ||||||||||
I Class | ANVHX | 15.93% | 2.27% | 12/3/19 | ||||||||||
A Class | ANVLX | 12/3/19 | ||||||||||||
No sales charge | 15.46% | 1.81% | ||||||||||||
With sales charge | 8.82% | 0.31% | ||||||||||||
R Class | ANVRX | 15.09% | 1.54% | 12/3/19 | ||||||||||
R6 Class | ANVMX | 16.17% | 2.42% | 12/3/19 | ||||||||||
G Class | ANTGX | 17.10% | 3.93% | 12/6/18 |
G Class returns would have been lower if a portion of the fees had not been waived.
Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
3
Growth of $10,000 Over Life of Class | ||
$10,000 investment made December 6, 2018 | ||
Performance for other share classes will vary due to differences in fee structure. |
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Value on November 30, 2023 | |||||
Investor Class — $11,398 | |||||
MSCI ACWI ex-U.S. Index — $13,127 | |||||
Total Annual Fund Operating Expenses | |||||||||||||||||
Investor Class | I Class | A Class | R Class | R6 Class | G Class | ||||||||||||
1.17% | 0.97% | 1.42% | 1.67% | 0.82% | 0.82% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
4
Portfolio Commentary |
Portfolio Managers: Jonathan Veiga and Bert Whitson
In June 2023, Bert Whitson was added as a portfolio manager for the Non-U.S. Intrinsic Value Fund. Bert has worked on the team since January 2012 and has been a portfolio manager for American Century Investments’ Non-U.S. Intrinsic Value Small Cap strategy since February 2019. Bert Whitson and Jonathan Veiga are the lead portfolio managers for Non-U.S. Intrinsic Value following the departure of portfolio manager Alvin Polit in June 2023.
Performance Summary
Non-U.S. Intrinsic Value rose 15.84%* for the 12 months ended November 30, 2023. The fund’s benchmark, the MSCI ACWI ex-U.S. Index, returned 9.26% for the same time period. The fund’s return reflects operating expenses, while the index’s return does not.
Non-U.S. equities advanced strongly amid declining interest rate expectations as global inflation moderated. Against this backdrop, non-U.S. value stocks generally outperformed growth stocks, creating a tailwind for our value-oriented portfolio. In addition, the portfolio benefited from strong security selection, particularly in the financials and industrials sectors. Conversely, security selection and an underweight in the information technology sector relative to the benchmark detracted from results.
Financials and Industrials Were Areas of Strength
Within the financials sector, holdings in the banking industry positively impacted relative performance, including Banco do Brasil and UniCredit. Brazil-based Banco do Brasil reported strong financial results, driven by growth in its loan book and an improving macroeconomic outlook. Italy-based UniCredit posted solid earnings due to higher interest rates, lower loan loss provisions and continued execution on management’s turnaround efforts. Additionally, UniCredit pledged to increase its capital distribution to shareholders. We eliminated our position in UniCredit because, in our view, UniCredit’s valuation became less attractive due to strength in its share price, and other attractive value opportunities became available.
Our choice of investments in the industrials sector also buoyed results. Switzerland-based staffing company Adecco Group was a top contributor; its shares jumped after the company reported strong market share gains and improved profitability, driven by pricing, rising health care staffing demand, productivity gains and cost control. Furthermore, with its acquisition of AKKA Technologies, Adecco became one of the top global staffing companies.
TIM, a large mobile telecommunications operator in Brazil, was another notable contributor. The company announced record earnings and revenues for its 2022 fiscal year, due in part to strength in online sales and a record number of new customers. The position was sold off before the end of the period.
Information Technology Detracted
Security selection in information technology hindered performance, along with the portfolio’s underweight in the sector relative to the benchmark. This sector underweight was the result of our bottom-up investment process, which focuses on earnings sustainability over long time periods. Technology is prone to obsolescence risk and short product life cycles, resulting in limited opportunities in the sector.
In addition, JD.com was a key detractor. Shares of this large online retailer were hindered by concerns that intensifying competition may negatively impact the company’s financial results. Also, JD.com’s revenue growth was pressured as Chinese shoppers spent less money amid strict COVID-19 lockdowns. Lack of exposure to benchmark name Novo Nordisk also weighed on relative results. Shares of this Denmark-based global health care company jumped on news that its obesity drug Wegovy may offer heart benefits beyond weight loss.
*All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the fund’s benchmark, other share classes may not. See page 3 for returns for all share classes.
5
Fund Characteristics |
NOVEMBER 30, 2023 | |||||
Types of Investments in Portfolio | % of net assets | ||||
Common Stocks | 97.3% | ||||
Short-Term Investments | 1.7% | ||||
Other Assets and Liabilities | 1.0% | ||||
Top Five Countries | % of net assets | ||||
United Kingdom | 27.9% | ||||
France | 15.0% | ||||
China | 7.9% | ||||
South Korea | 7.8% | ||||
Germany | 7.0% |
6
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 June 1, 2023 to November 30, 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.
7
Beginning Account Value 6/1/23 | Ending Account Value 11/30/23 | Expenses Paid During Period(1) 6/1/23 - 11/30/23 | Annualized Expense Ratio(1) | |||||||||||
Actual | ||||||||||||||
Investor Class | $1,000 | $1,044.70 | $5.89 | 1.15% | ||||||||||
I Class | $1,000 | $1,045.80 | $4.87 | 0.95% | ||||||||||
A Class | $1,000 | $1,042.60 | $7.17 | 1.40% | ||||||||||
R Class | $1,000 | $1,041.70 | $8.45 | 1.65% | ||||||||||
R6 Class | $1,000 | $1,046.00 | $4.10 | 0.80% | ||||||||||
G Class | $1,000 | $1,049.60 | $0.00 | 0.00%(2) | ||||||||||
Hypothetical | ||||||||||||||
Investor Class | $1,000 | $1,019.30 | $5.82 | 1.15% | ||||||||||
I Class | $1,000 | $1,020.31 | $4.81 | 0.95% | ||||||||||
A Class | $1,000 | $1,018.05 | $7.08 | 1.40% | ||||||||||
R Class | $1,000 | $1,016.80 | $8.34 | 1.65% | ||||||||||
R6 Class | $1,000 | $1,021.06 | $4.05 | 0.80% | ||||||||||
G Class | $1,000 | $1,025.07 | $0.00 | 0.00%(2) |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 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%.
8
Schedule of Investments |
NOVEMBER 30, 2023
Shares | Value | |||||||
COMMON STOCKS — 97.3% | ||||||||
Belgium — 1.6% | ||||||||
UCB SA | 128,338 | $ | 9,491,845 | |||||
Brazil — 4.2% | ||||||||
Ambev SA | 2,176,100 | 6,017,151 | ||||||
Banco Bradesco SA | 4,651,026 | 13,493,697 | ||||||
Banco do Brasil SA | 483,400 | 5,327,953 | ||||||
24,838,801 | ||||||||
Canada — 1.9% | ||||||||
ERO Copper Corp.(1) | 343,226 | 4,229,145 | ||||||
Linamar Corp. | 163,907 | 6,958,755 | ||||||
11,187,900 | ||||||||
China — 7.9% | ||||||||
Alibaba Group Holding Ltd.(1) | 1,167,800 | 10,855,179 | ||||||
Autohome, Inc., ADR | 282,166 | 7,705,953 | ||||||
Baidu, Inc., Class A(1) | 499,200 | 7,407,683 | ||||||
JD.com, Inc., Class A | 394,864 | 5,385,983 | ||||||
Tencent Holdings Ltd. | 351,900 | 14,659,854 | ||||||
46,014,652 | ||||||||
Finland — 1.5% | ||||||||
Nokia Oyj | 2,601,892 | 9,125,769 | ||||||
France — 15.0% | ||||||||
Arkema SA | 60,008 | 6,106,258 | ||||||
BNP Paribas SA | 118,712 | 7,463,069 | ||||||
Cie de Saint-Gobain SA | 91,356 | 5,956,039 | ||||||
Eiffage SA | 176,531 | 17,896,832 | ||||||
Rexel SA | 770,849 | 18,602,032 | ||||||
Sanofi SA | 255,475 | 23,826,858 | ||||||
Sanofi SA, ADR | 37,703 | 1,762,615 | ||||||
Verallia SA | 163,694 | 5,828,039 | ||||||
87,441,742 | ||||||||
Germany — 7.0% | ||||||||
Bayerische Motoren Werke AG | 141,596 | 14,774,460 | ||||||
Continental AG | 179,599 | 13,938,131 | ||||||
Mercedes-Benz Group AG | 184,360 | 11,986,965 | ||||||
40,699,556 | ||||||||
Ireland — 3.7% | ||||||||
Smurfit Kappa Group PLC | 566,889 | 21,537,322 | ||||||
Japan — 4.5% | ||||||||
SUMCO Corp. | 1,747,700 | 26,148,831 | ||||||
Netherlands — 5.5% | ||||||||
NN Group NV | 542,751 | 20,713,564 | ||||||
Signify NV | 393,799 | 11,459,189 | ||||||
32,172,753 | ||||||||
Russia(2)† | ||||||||
MMC Norilsk Nickel PJSC(1) | 76,933 | — | ||||||
South Korea — 7.8% | ||||||||
Hana Financial Group, Inc. | 404,205 | 13,005,916 |
9
Shares | Value | |||||||
Hyundai Mobis Co. Ltd. | 69,751 | $ | 12,336,169 | |||||
LG Uplus Corp. | 362,296 | 2,942,834 | ||||||
Samsung Electronics Co. Ltd. | 306,768 | 17,297,945 | ||||||
45,582,864 | ||||||||
Sweden — 1.9% | ||||||||
Telefonaktiebolaget LM Ericsson, B Shares | 860,944 | 4,257,298 | ||||||
Volvo Car AB, Class B(1) | 2,063,215 | 6,734,350 | ||||||
10,991,648 | ||||||||
Switzerland — 6.9% | ||||||||
Adecco Group AG | 331,367 | 15,982,033 | ||||||
Roche Holding AG | 89,755 | 24,145,978 | ||||||
40,128,011 | ||||||||
United Kingdom — 27.9% | ||||||||
AstraZeneca PLC, ADR | 236,385 | 15,268,107 | ||||||
Barclays PLC | 7,721,152 | 13,805,289 | ||||||
Barratt Developments PLC | 2,109,735 | 13,718,276 | ||||||
British American Tobacco PLC | 493,056 | 15,689,031 | ||||||
DS Smith PLC | 2,372,862 | 8,726,349 | ||||||
GSK PLC | 1,484,730 | 26,676,803 | ||||||
Hikma Pharmaceuticals PLC | 66,453 | 1,448,084 | ||||||
IMI PLC | 330,617 | 6,534,389 | ||||||
Kingfisher PLC | 5,107,325 | 14,176,824 | ||||||
Mondi PLC | 592,275 | 10,553,277 | ||||||
Nomad Foods Ltd.(1) | 357,660 | 5,776,209 | ||||||
Taylor Wimpey PLC | 9,392,352 | 15,394,398 | ||||||
WPP PLC | 1,703,700 | 15,227,823 | ||||||
162,994,859 | ||||||||
TOTAL COMMON STOCKS (Cost $569,597,827) | 568,356,553 | |||||||
SHORT-TERM INVESTMENTS — 1.7% | ||||||||
Money Market Funds† | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 19,904 | 19,904 | ||||||
Repurchase Agreements — 1.7% | ||||||||
BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.625%, 7/31/29, valued at $1,139,412), in a joint trading account at 5.30%, dated 11/30/23, due 12/1/23 (Delivery value $1,116,811) | 1,116,647 | |||||||
Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 0.375%, 7/15/27, valued at $8,693,512), at 5.30%, dated 11/30/23, due 12/1/23 (Delivery value $8,524,255) | 8,523,000 | |||||||
9,639,647 | ||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $9,659,551) | 9,659,551 | |||||||
TOTAL INVESTMENT SECURITIES — 99.0% (Cost $579,257,378) | 578,016,104 | |||||||
OTHER ASSETS AND LIABILITIES — 1.0% | 5,982,843 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 583,998,947 |
10
MARKET SECTOR DIVERSIFICATION | |||||
(as a % of net assets) | |||||
Consumer Discretionary | 21.6% | ||||
Health Care | 17.6% | ||||
Industrials | 13.1% | ||||
Financials | 12.6% | ||||
Materials | 9.8% | ||||
Information Technology | 9.7% | ||||
Communication Services | 8.2% | ||||
Consumer Staples | 4.7% | ||||
Short-Term Investments | 1.7% | ||||
Other Assets and Liabilities | 1.0% |
NOTES TO SCHEDULE OF INVESTMENTS | ||||||||
ADR | – | American Depositary Receipt |
†Category is less than 0.05% of total net assets.
(1)Non-income producing.
(2)Securities may be subject to resale, redemption or transferability restrictions.
See Notes to Financial Statements.
11
Statement of Assets and Liabilities |
NOVEMBER 30, 2023 | |||||
Assets | |||||
Investment securities, at value (cost of $579,257,378) | $ | 578,016,104 | |||
Foreign currency holdings, at value (cost of $1,453,910) | 68,078 | ||||
Receivable for investments sold | 3,868,346 | ||||
Receivable for capital shares sold | 67,117 | ||||
Dividends and interest receivable | 2,430,598 | ||||
584,450,243 | |||||
Liabilities | |||||
Payable for capital shares redeemed | 345,569 | ||||
Accrued management fees | 105,727 | ||||
451,296 | |||||
Net Assets | $ | 583,998,947 | |||
Net Assets Consist of: | |||||
Capital (par value and paid-in surplus) | $ | 530,287,898 | |||
Distributable earnings (loss) | 53,711,049 | ||||
$ | 583,998,947 |
Net Assets | Shares Outstanding | Net Asset Value Per Share* | |||||||||
Investor Class, $0.01 Par Value | $114,111,369 | 11,635,851 | $9.81 | ||||||||
I Class, $0.01 Par Value | $464,493 | 47,320 | $9.82 | ||||||||
A Class, $0.01 Par Value | $139,330 | 14,249 | $9.78 | ||||||||
R Class, $0.01 Par Value | $100,112 | 10,269 | $9.75 | ||||||||
R6 Class, $0.01 Par Value | $5,502 | 550 | $10.00 | ||||||||
G Class, $0.01 Par Value | $469,178,141 | 47,192,578 | $9.94 |
*Maximum offering price per share was equal to the net asset value per share for all share classes, except A Class, for which the maximum offering price per share was $10.38 (net asset value divided by 0.9425). A contingent deferred sales charge may be imposed on redemptions of A Class.
See Notes to Financial Statements.
12
Statement of Operations |
YEAR ENDED NOVEMBER 30, 2023 | |||||
Investment Income (Loss) | |||||
Income: | |||||
Dividends (net of foreign taxes withheld of $1,913,265) | $ | 22,931,144 | |||
Interest | 213,756 | ||||
23,144,900 | |||||
Expenses: | |||||
Management fees | 5,025,040 | ||||
Distribution and service fees: | |||||
A Class | 86 | ||||
R Class | 599 | ||||
Directors' fees and expenses | 19,749 | ||||
Foreign withholding tax reclaim expenses | 182,374 | ||||
Other expenses | 21,585 | ||||
5,249,433 | |||||
Fees waived - G Class | (3,608,432) | ||||
1,641,001 | |||||
Net investment income (loss) | 21,503,899 | ||||
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) on: | |||||
Investment transactions | 48,798,050 | ||||
Foreign currency translation transactions | (340,650) | ||||
48,457,400 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||
Investments | 18,770,399 | ||||
Translation of assets and liabilities in foreign currencies | 127,623 | ||||
18,898,022 | |||||
Net realized and unrealized gain (loss) | 67,355,422 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 88,859,321 |
See Notes to Financial Statements.
13
Statement of Changes in Net Assets |
YEARS ENDED NOVEMBER 30, 2023 AND NOVEMBER 30, 2022 | ||||||||
Increase (Decrease) in Net Assets | November 30, 2023 | November 30, 2022 | ||||||
Operations | ||||||||
Net investment income (loss) | $ | 21,503,899 | $ | 27,097,740 | ||||
Net realized gain (loss) | 48,457,400 | (1,798,500) | ||||||
Change in net unrealized appreciation (depreciation) | 18,898,022 | (44,074,490) | ||||||
Net increase (decrease) in net assets resulting from operations | 88,859,321 | (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) | (81,376,559) | 9,376,069 | ||||||
Net increase (decrease) in net assets | (21,702,677) | (45,279,640) | ||||||
Net Assets | ||||||||
Beginning of period | 605,701,624 | 650,981,264 | ||||||
End of period | $ | 583,998,947 | $ | 605,701,624 |
See Notes to Financial Statements.
14
Notes to Financial Statements |
NOVEMBER 30, 2023
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.
15
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. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
16
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation's investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation's transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 48% 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 November 30, 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 ratio of operating expenses to average net assets was 0.03% for the period ended November 30, 2023.
Other Expenses — A fund’s other expenses may include interest charges, clearing exchange fees, proxy solicitation expenses, fees associated with the recovery of foreign tax reclaims and other miscellaneous expenses.
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 $321,600 and $1,820,245, respectively. The effect of interfund transactions on the Statement of Operations was $1,145,769 in net realized gain (loss) on investment transactions.
17
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended November 30, 2023 were $351,000,612 and $453,099,849, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Year ended November 30, 2023 | Year ended November 30, 2022 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Investor Class/Shares Authorized | 150,000,000 | 130,000,000 | ||||||||||||
Sold | 1,401,342 | $ | 13,564,751 | 1,519,386 | $ | 14,748,158 | ||||||||
Issued in reinvestment of distributions | 585,447 | 4,999,719 | 735,130 | 7,071,954 | ||||||||||
Redeemed | (5,940,162) | (54,813,895) | (2,336,943) | (20,948,979) | ||||||||||
(3,953,373) | (36,249,425) | (82,427) | 871,133 | |||||||||||
I Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||||||
Sold | 301,057 | 2,879,298 | 148,660 | 1,470,079 | ||||||||||
Issued in reinvestment of distributions | 1,418 | 12,093 | 920 | 8,837 | ||||||||||
Redeemed | (410,073) | (3,954,832) | (14,552) | (120,996) | ||||||||||
(107,598) | (1,063,441) | 135,028 | 1,357,920 | |||||||||||
A Class/Shares Authorized | 35,000,000 | 40,000,000 | ||||||||||||
Sold | 12,750 | 117,156 | 188 | 1,500 | ||||||||||
Issued in reinvestment of distributions | 70 | 593 | 55 | 534 | ||||||||||
Redeemed | (122) | (1,203) | — | — | ||||||||||
12,698 | 116,546 | 243 | 2,034 | |||||||||||
R Class/Shares Authorized | 35,000,000 | 40,000,000 | ||||||||||||
Sold | 26,800 | 253,974 | 12,901 | 113,679 | ||||||||||
Issued in reinvestment of distributions | 368 | 3,141 | 146 | 1,406 | ||||||||||
Redeemed | (25,497) | (235,798) | (7,656) | (69,811) | ||||||||||
1,671 | 21,317 | 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 | 3,863,635 | 36,695,588 | 8,004,444 | 72,183,755 | ||||||||||
Issued in reinvestment of distributions | 2,817,309 | 24,116,165 | 2,987,157 | 28,796,193 | ||||||||||
Redeemed | (11,289,069) | (105,013,537) | (9,486,129) | (93,880,474) | ||||||||||
(4,608,125) | (44,201,784) | 1,505,472 | 7,099,474 | |||||||||||
Net increase (decrease) | (8,654,701) | $ | (81,376,559) | 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).
18
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund's portfolio holdings.
Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||
Investment Securities | |||||||||||
Common Stocks | |||||||||||
China | $ | 7,705,953 | $ | 38,308,699 | — | ||||||
France | 1,762,615 | 85,679,127 | — | ||||||||
United Kingdom | 21,044,316 | 141,950,543 | — | ||||||||
Other Countries | — | 271,905,300 | — | ||||||||
Short-Term Investments | 19,904 | 9,639,647 | — | ||||||||
$ | 30,532,788 | $ | 547,483,316 | — |
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
On December 19, 2023, the fund declared and paid a per-share distribution from net realized gains to shareholders of record on December 18, 2023 of $0.8870 for the Investor Class, I Class, A Class, R Class, R6 Class and G Class.
On December 19, 2023, the fund declared and paid the following per-share distributions from net investment income to shareholders of record on December 18, 2023:
Investor Class | I Class | A Class | R Class | R6 Class | G Class | ||||||||||||
$0.2817 | $0.3021 | $0.2563 | $0.2308 | $0.3174 | $0.3989 |
The tax character of distributions paid during the years ended November 30, 2023 and November 30, 2022 were as follows:
2023 | 2022 | |||||||
Distributions Paid From | ||||||||
Ordinary income | $ | 29,185,439 | $ | 35,880,459 | ||||
Long-term capital gains | — | — |
19
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 federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments | $ | 593,066,501 | |||
Gross tax appreciation of investments | $ | 47,011,110 | |||
Gross tax depreciation of investments | (62,061,507) | ||||
Net tax appreciation (depreciation) of investments | (15,050,397) | ||||
Net tax appreciation (depreciation) on translation of assets and liabilities in foreign currencies | (1,346,949) | ||||
Net tax appreciation (depreciation) | $ | (16,397,346) | |||
Undistributed ordinary income | $ | 45,409,989 | |||
Accumulated long-term gains | $ | 24,698,406 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
20
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||||||||||||||||||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Income From Investment Operations*: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | $8.88 | 0.28 | 1.05 | 1.33 | (0.34) | (0.06) | (0.40) | $9.81 | 15.84% | 1.19% | 1.19% | 2.84% | 2.84% | 62% | $114,111 | ||||||||||||||||||||||||||||||||
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(3) | $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 | $8.89 | 0.38 | 0.97 | 1.35 | (0.36) | (0.06) | (0.42) | $9.82 | 15.93% | 0.99% | 0.99% | 3.04% | 3.04% | 62% | $464 | ||||||||||||||||||||||||||||||||
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(5) | $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%(6) | $4 | ||||||||||||||||||||||||||||||||
A Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | $8.85 | 0.16 | 1.15 | 1.31 | (0.32) | (0.06) | (0.38) | $9.78 | 15.46% | 1.44% | 1.44% | 2.59% | 2.59% | 62% | $139 | ||||||||||||||||||||||||||||||||
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(5) | $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%(6) | $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 | $8.83 | 0.25 | 1.03 | 1.28 | (0.30) | (0.06) | (0.36) | $9.75 | 15.09% | 1.69% | 1.69% | 2.34% | 2.34% | 62% | $100 | ||||||||||||||||||||||||||||||||
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(5) | $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%(6) | $6 | ||||||||||||||||||||||||||||||||
R6 Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | $9.04 | 0.32 | 1.07 | 1.39 | (0.37) | (0.06) | (0.43) | $10.00 | 16.17% | 0.84% | 0.84% | 3.19% | 3.19% | 62% | $6 | ||||||||||||||||||||||||||||||||
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(5) | $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%(6) | $4 | ||||||||||||||||||||||||||||||||
G Class | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | $8.99 | 0.38 | 1.07 | 1.45 | (0.44) | (0.06) | (0.50) | $9.94 | 17.10% | 0.04% | 0.84% | 3.99% | 3.19% | 62% | $469,178 | ||||||||||||||||||||||||||||||||
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%(7) | 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(3) | $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)December 6, 2018 (fund inception) through November 30, 2019.
(4)Annualized.
(5)December 3, 2019 (commencement of sale) through November 30, 2020.
(6)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2020.
(7)Ratio was less than 0.005%.
*The amount shown for a share outstanding throughout the period may not correlate with the Statement(s) of Operations or precisely reflect the class expense differentials due to the timing of transactions in shares of a fund in relation to income earned and/or fluctuations in the fair value of a fund's investments.
See Notes to Financial Statements.
Report of Independent Registered Public Accounting Firm |
To the Shareholders of the Non-U.S. Intrinsic Value Fund and the Board of Directors of American Century World Mutual Funds, Inc.
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Non-U.S. Intrinsic Value Fund (the “Fund”), one of the funds constituting the American Century World Mutual Funds, Inc., as of November 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for the years ended November 30, 2023, 2022, 2021, and 2020, and the period from December 6, 2018 (fund inception) through November 30, 2019, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Non-U.S. Intrinsic Value Fund of the American Century World Mutual Funds, Inc. as of November 30, 2023, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for the years ended November 30, 2023, 2022, 2021, and 2020, and the period from December 6, 2018 (fund inception) through November 30, 2019, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Kansas City, Missouri
January 17, 2024
We have served as the auditor of one or more American Century investment companies since 1997.
24
Management |
The Board of Directors
The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire on December 31 of the year in which they reach their 75th birthday.
Jonathan S. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Brian Bulatao (1964) | Director | Since 2022 | Chief Administrative Officer, Activision Blizzard, Inc. (2021 to present); Under Secretary of State for Management, U.S. Department of State (2018 to 2021); Chief Operating Officer, Central Intelligence Agency (2017 to 2018) | 65 | None | ||||||||||||
Thomas W. Bunn (1953) | Director | Since 2017 | Retired | 65 | None | ||||||||||||
Chris H. Cheesman (1962) | Director | Since 2019 | Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018) | 65 | Alleghany Corporation (2021 to 2022) | ||||||||||||
Barry Fink (1955) | Director | Since 2012 (independent since 2016) | Retired | 65 | None | ||||||||||||
Rajesh K. Gupta (1960) | Director | Since 2019 | Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019) | 65 | None |
25
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Director | Other Directorships Held During Past 5 Years | ||||||||||||
Independent Directors | |||||||||||||||||
Lynn Jenkins (1963) | Director | Since 2019 | Consultant, LJ Strategies (2019 to present); United States Representative, U.S. House of Representatives (2009 to 2018) | 65 | MGP Ingredients, Inc. (2019 to 2021) | ||||||||||||
Jan M. Lewis (1957) | Director and Board Chair | Since 2011 (Board Chair since 2022) | Retired | 65 | None | ||||||||||||
Gary C. Meltzer (1963) | Director | Since 2022 | Advisor, Pontoro (2021 to present); Executive Advisor, Consultant and Investor, Harris Ariel Advisory LLC (2020 to present); Managing Partner, PricewaterhouseCoopers LLP (1985 to 2020) | 65 | ExcelFin Acquisition Corp., Apollo Realty Income Solutions, Inc. | ||||||||||||
Stephen E. Yates(1) (1948) | Director | Since 2012 | Retired | 118 | None | ||||||||||||
Interested Director | |||||||||||||||||
Jonathan S. Thomas (1963) | Director | Since 2007 | President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Director, ACC and other ACC subsidiaries | 150 | None |
(1) Effective December 31, 2023, Steven E. Yates retired from the Board of Directors.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.
26
Officers
The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for each of the 16 investment companies in the American Century family of funds. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Offices with the Funds | Principal Occupation(s) During the Past Five Years | ||||||
Patrick Bannigan (1965) | President since 2019 | Executive Vice President and Director, ACC (2012 to present); Chief Financial Officer, Chief Accounting Officer and Treasurer, ACC (2015 to present). Also serves as President, ACS; Vice President, ACIM; Chief Financial Officer, Chief Accounting Officer and/or Director, ACIM, ACS and other ACC subsidiaries | ||||||
R. Wes Campbell (1974) | Chief Financial Officer and Treasurer since 2018; Vice President since 2023 | Vice President, ACS, (2020 to present); Investment Operations and Investment Accounting, ACS (2000 to present) | ||||||
Amy D. Shelton (1964) | Chief Compliance Officer and Vice President since 2014 | Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present). Also serves as Vice President, ACIS | ||||||
John Pak (1968) | General Counsel and Senior Vice President since 2021 | General Counsel and Senior Vice President, ACC (2021 to present). Also serves as General Counsel and Senior Vice President, ACIM, ACS and ACIS. Chief Legal Officer of Investment and Wealth Management, The Bank of New York Mellon (2014 to 2021) | ||||||
Cihan Kasikara (1974) | Vice President since 2023 | Senior Vice President, ACS (2022 to present); Treasurer, ACS (2023 to present); Vice President, ACS (2020 to 2022); Vice President, Franklin Templeton (2015 to 2020) | ||||||
Kathleen Gunja Nelson (1976) | Vice President since 2023 | Vice President, ACS (2017 to present) | ||||||
Ward D. Stauffer (1960) | Secretary since 2005 | Attorney, ACC (2003 to present) |
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Approval of Management Agreement |
At a meeting held on June 28, 2023, the Fund’s Board of Directors (the "Board") unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under the Investment Company Act of 1940 (the “Investment Company Act”), contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s Directors, including a majority of the independent Directors.
Prior to its consideration of the renewal of the management agreement, the Directors requested and reviewed data and information compiled by the Advisor and certain independent data providers concerning the Fund. This review was in addition to the oversight and evaluation undertaken by the Board and its committees on a continual basis and the information received was supplemental to the information that the Board and its committees receive and consider over time.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor and its affiliates included, but was not limited to
•the nature, extent, and quality of investment management, shareholder services, distribution services, and other services provided to the Fund;
•the wide range of programs and services the Advisor and other service providers provide to the Fund and its shareholders on a routine and non-routine basis;
•the Fund’s investment performance compared to appropriate benchmarks and/or peer groups of other mutual funds with similar investment objectives and strategies;
•the cost of owning the Fund compared to the cost of owning similarly-managed funds;
•the Advisor’s compliance policies, procedures, and regulatory experience and those of certain other service providers;
•the Advisor’s strategic plans, generally, and with respect to areas of heightened regulatory interest in the mutual fund industry and certain recent geopolitical and other issues;
•the Advisor’s business continuity plans, vendor management practices, and information security practices;
•the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the Advisor’s financial results of operation;
•possible economies of scale associated with the Advisor’s management of the Fund;
•any collateral benefits derived by the Advisor from the management of the Fund;
•fees and expenses associated with any investment by the Fund in other funds;
•payments to intermediaries by the Fund and the Advisor and services provided by intermediaries in connection therewith; and
•services provided and charges to the Advisor's other investment management clients.
The Board held two meetings to consider the renewal. The independent Directors also met in private session multiple times to review and discuss the information provided in response to their request. The independent Directors held active discussions with the Advisor regarding the renewal of the management agreement, requesting supplemental information, and reviewing information provided by the Advisor in response thereto. The independent Directors had the benefit of the advice of their independent counsel throughout the process.
Factors Considered
The Directors considered all of the information provided by the Advisor, the independent data providers, and independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Directors did not identify any single factor as being all-important or controlling, and each Director may have attributed different levels of importance to different factors.
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In deciding to renew the management agreement, the Board based its decision on a number of factors, including without limitation the following:
Nature, Extent and Quality of Services — Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that the Advisor provides or arranges at its own expense a wide variety of services which include, without limitation, the following:
•constructing and designing the Fund
•portfolio research and security selection
•initial capitalization/funding
•securities trading
•Fund administration
•custody of Fund assets
•daily valuation of the Fund’s portfolio
•liquidity monitoring and management
•risk management, including information security
•shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications
•legal services (except the independent Directors’ counsel)
•regulatory and portfolio compliance
•financial reporting
•marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans)
The Board noted that many of these services have expanded over time in terms of both quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and principal investment strategies. Further, the Directors recognize that the Advisor has an obligation to monitor trading activities, and in particular to seek the best execution of fund trades, and to evaluate the use of and payment for research. In providing these services, the Advisor utilizes teams of investment professionals who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Fund Performance Review Committee, provides oversight of the investment performance process. It regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Directors also review investment performance information during the management agreement renewal process. If performance concerns are identified, the Board discusses with the Advisor the reasons for such results and any actions being taken to improve performance and may conduct special reviews until performance improves. The Fund’s performance was above its benchmark for the one-year period and below its benchmark for the three-year period reviewed by the Board. In relation to industry peers, the Fund was above the median of its peer performance universe as identified by a third-party service provider for the one- and three-year periods. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
Shareholder and Other Services. Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through its various committees, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction, technology support (including information security), new products and services offered to Fund shareholders, securities trading activities,
29
portfolio valuation services, auditing services, and legal and operational compliance activities. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund (pre- and post-distribution), and its financial results of operation. The Directors have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the terms of the current management agreement. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is sharing economies of scale, to the extent they exist, through its fee structure, and through reinvestment in its business, infrastructure, investment capabilities and initiatives to provide shareholders enhanced and expanded content and services.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage and other transaction fees and expenses relating to acquisition and disposition of portfolio securities, acquired fund fees and expenses, taxes, interest, extraordinary expenses, fund litigation expenses, fees and expenses of the Fund’s independent Directors (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Investment Company Act Rule 12b-1. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider comparing the Fund’s unified fee to the total expense ratios of its peers. The unified fee charged to shareholders of the Fund was near the median of the total expense ratios of the Fund’s peer expense universe. In addition, the Board reviewed the Fund’s position relative to the narrower set of its expense group peers. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
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Payments to Intermediaries. The Directors also requested and received a description of payments made to intermediaries by the Fund and the Advisor and services provided in response thereto. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund. The Directors reviewed such information and received representations from the Advisor that all such payments by the Fund were made pursuant to the Fund's Rule 12b-1 Plan and that all such payments by the Advisor were made from the Advisor’s resources and reasonable profits.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the possible existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. They concluded that the Advisor’s primary business is managing funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. To the extent there are potential collateral benefits, the Board has been advised and has taken this into consideration in its review of the management contract with the Fund. The Board noted that additional assets from other clients may offer the Advisor some benefit from increased leverage with prospective clients, service providers, and counterparties. Additionally, the Advisor may receive proprietary research from broker-dealers that execute fund portfolio transactions, which the Board concluded is likely to benefit other clients of the Advisor, as well as Fund shareholders. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board concluded that appropriate allocation methodologies had been employed to assign resources and the cost of those resources to these other clients.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Directors. As a result of this process, the Board, including all of the independent Directors, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and received over time, determined that the terms of the management agreement are fair and reasonable and that the management fee charged to the Fund is reasonable in light of the services provided and that the management agreement between the Fund and the Advisor should be renewed for an additional one-year period.
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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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Other Tax Information
The following information is provided pursuant to provisions of the Internal Revenue Code.
The fund hereby designates up to the maximum amount allowable as qualified dividend income for the fiscal year ended November 30, 2023.
The fund hereby designates $4,982,470 as qualified short-term capital gain distributions for purposes of Internal Revenue Code Section 871 for the fiscal year ended November 30, 2023.
The fund hereby designates $1,246,652, or up to the maximum amount allowable, as long-term capital gain distributions (20% rate gain distributions) for the fiscal year ended November 30, 2023.
For the fiscal year ended November 30, 2023, the fund intends to pass through to shareholders foreign source income of $24,158,359 and foreign taxes paid of $1,198,467, or up to the maximum amount allowable, as a foreign tax credit. Foreign source income and foreign tax expense per outstanding share on November 30, 2023 are $0.4102 and $0.0203, respectively.
The fund utilized earnings and profits of $3,599,692 distributed to shareholders on redemption of shares as part of the dividends paid deduction (tax equalization).
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Notes |
34
Notes |
35
Notes |
36
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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. | ||||||||
©2024 American Century Proprietary Holdings, Inc. All rights reserved. CL-ANN-95207 2401 |
(b) None.
ITEM 2. CODE OF ETHICS.
(a) The registrant has adopted a Code of Ethics for Senior Financial Officers that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, and persons performing similar functions.
(b) No response required.
(c) None.
(d) None.
(e) Not applicable.
(f) The registrant’s Code of Ethics for Senior Financial Officers was filed as Exhibit 12 (a)(1) to American Century Asset Allocation Portfolios, Inc.’s Annual Certified Shareholder Report on Form N-CSR, File No. 811-21591, on September 29, 2005, and is incorporated herein by reference.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) The registrant’s board has determined that the registrant has at least one audit committee financial expert serving on its audit committee.
(a)(2) Chris H. Cheesman, Lynn M. Jenkins, Barry Fink and Gary Meltzer are the registrant’s designated audit committee financial experts. They are “independent” as defined in Item 3 of Form N-CSR.
(a)(3) Not applicable.
(b) No response required.
(c) No response required.
(d) No response required.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees.
The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were as follows:
FY 2022: $221,120
FY 2023: $219,310
(b) Audit-Related Fees.
The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were as follows:
For services rendered to the registrant:
FY 2022: $0
FY 2023: $0
Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X (relating to certain engagements for non-audit services with the registrant’s investment adviser and its affiliates):
FY 2022: $0
FY 2023: $0
(c) Tax Fees.
The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were as follows:
For services rendered to the registrant:
FY 2022: $0
FY 2023: $0
Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X (relating to certain engagements for non-audit services with the registrant’s investment adviser and its affiliates):
FY 2022: $0
FY 2023: $0
(d) All Other Fees.
The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item were as follows:
For services rendered to the registrant:
FY 2022: $0
FY 2023: $0
Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X (relating to certain engagements for non-audit services with the registrant’s investment adviser and its affiliates):
FY 2022: $0
FY 2023: $0
(e)(1) In accordance with paragraph (c)(7)(i)(A) of Rule 2-01 of Regulation S-X, before the accountant is engaged by the registrant to render audit or non-audit services, the engagement is approved by the registrant’s audit committee. Pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, the registrant’s audit committee also pre-approves its accountant’s engagements for non-audit services with the registrant’s investment adviser, its parent company, and any entity controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, if the engagement relates directly to the operations and financial reporting of the registrant.
(e)(2) All services described in each of paragraphs (b) through (d) of this Item were pre-approved before the engagement by the registrant’s audit committee pursuant to paragraph (c)(7)(i)(A) of Rule 2-01 of Regulation S-X. Consequently, none of such services were required to be approved by the audit committee pursuant to paragraph (c)(7)(i)(C).
(f) The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was less than 50%.
(g) The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant were as follows:
FY 2022: $50,000
FY 2023: $343,325
(h) The registrant’s investment adviser and accountant have notified the registrant’s audit committee of all non-audit services that were rendered by the registrant’s accountant to the registrant’s investment adviser, its parent company, and any entity controlled by, or under common control with the investment adviser that provides services to the registrant, which services were not required to be pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X. The notification provided to the registrant’s audit committee included sufficient details regarding such services to allow the registrant’s audit committee to consider the continuing independence of its principal accountant.
(i) Not applicable.
(j) Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) The schedule of investments is included as part of the report to stockholders filed under Item 1 of this Form.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
During the reporting period, there were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)(1) Registrant’s Code of Ethics for Senior Financial Officers, which is the subject of the disclosure required by Item 2 of Form N-CSR, was filed as Exhibit 12(a)(1) to American Century Asset Allocation Portfolios, Inc.’s Certified Shareholder Report on Form N-CSR, File No. 811-21591, on September 29, 2005.
(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: | January 25, 2024 |
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: | January 25, 2024 |
By: | /s/ R. Wes Campbell | ||||||||||
Name: | R. Wes Campbell | ||||||||||
Title: | Treasurer and | ||||||||||
Chief Financial Officer | |||||||||||
(principal financial officer) | |||||||||||
Date: | January 25, 2024 |