American Century Investments®
Quarterly Portfolio Holdings
AC Alternatives® Market Neutral Value Fund
June 30, 2021
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| AC Alternatives Market Neutral Value - Schedule of Investments |
JUNE 30, 2021 (UNAUDITED) |
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| Shares/
Principal Amount ($) | Value ($) |
| COMMON STOCKS — 62.7% | | |
| Aerospace and Defense — 5.0% | | |
HEICO Corp., Class A(1) | 17,308 | | 2,149,308 | |
Lockheed Martin Corp.(1) | 381 | | 144,151 | |
| | 2,293,459 | |
| Air Freight and Logistics — 0.3% | | |
| United Parcel Service, Inc., Class B | 563 | | 117,087 | |
| Automobiles — 1.3% | | |
General Motors Co.(2) | 4,689 | | 277,448 | |
| Volkswagen AG, Preference Shares | 1,309 | | 328,208 | |
| | 605,656 | |
| Banks — 2.3% | | |
| JPMorgan Chase & Co. | 2,983 | | 463,976 | |
| Royal Bank of Canada | 2,152 | | 218,030 | |
| U.S. Bancorp | 3,862 | | 220,018 | |
| UMB Financial Corp. | 1,895 | | 176,348 | |
| | 1,078,372 | |
| Beverages — 1.0% | | |
| Heineken Holding NV | 4,551 | | 459,236 | |
| Biotechnology — 0.4% | | |
Alexion Pharmaceuticals, Inc.(2) | 1,100 | | 202,081 | |
| Building Products — 1.5% | | |
AO Smith Corp.(1) | 2,457 | | 177,051 | |
Johnson Controls International plc(1) | 4,277 | | 293,531 | |
Masco Corp.(1) | 3,929 | | 231,457 | |
| | 702,039 | |
| Capital Markets — 1.3% | | |
| AllianceBernstein Holding LP | 8,927 | | 415,641 | |
| Bank of New York Mellon Corp. (The) | 3,605 | | 184,684 | |
| | 600,325 | |
| Chemicals — 2.1% | | |
| Akzo Nobel NV | 2,026 | | 250,861 | |
Axalta Coating Systems Ltd.(2) | 3,969 | | 121,015 | |
| Linde plc | 1,996 | | 577,043 | |
| | 948,919 | |
| Commercial Services and Supplies — 1.0% | | |
| Republic Services, Inc. | 4,206 | | 462,702 | |
| Communications Equipment — 0.7% | | |
| Cisco Systems, Inc. | 6,113 | | 323,989 | |
| Containers and Packaging — 0.3% | | |
| Packaging Corp. of America | 926 | | 125,399 | |
| Diversified Telecommunication Services — 0.5% | | |
| Verizon Communications, Inc. | 4,194 | | 234,990 | |
| Electric Utilities — 1.9% | | |
| Duke Energy Corp. | 2,889 | | 285,202 | |
| Pinnacle West Capital Corp. | 4,878 | | 399,850 | |
| Xcel Energy, Inc. | 2,821 | | 185,847 | |
| | 870,899 | |
| Electrical Equipment — 0.8% | | |
Emerson Electric Co.(1) | 3,587 | | 345,213 | |
| | |
| | | | | | | | |
| Electronic Equipment, Instruments and Components — 0.2% | | |
| Anritsu Corp. | 5,200 | | 96,860 | |
| Energy Equipment and Services — 0.7% | | |
| Baker Hughes Co. | 14,618 | | 334,314 | |
| Equity Real Estate Investment Trusts (REITs) — 1.2% | | |
| Equinix, Inc. | 203 | | 162,928 | |
| MGM Growth Properties LLC, Class A | 5,060 | | 185,297 | |
| Welltower, Inc. | 2,467 | | 205,008 | |
| | 553,233 | |
| Food and Staples Retailing — 2.0% | | |
| Koninklijke Ahold Delhaize NV | 6,216 | | 185,110 | |
| Sysco Corp. | 7,037 | | 547,127 | |
| Walmart, Inc. | 1,321 | | 186,287 | |
| | 918,524 | |
| Food Products — 0.5% | | |
| Conagra Brands, Inc. | 6,573 | | 239,126 | |
| Gas Utilities — 1.5% | | |
| Atmos Energy Corp. | 2,346 | | 225,474 | |
| ONE Gas, Inc. | 4,697 | | 348,142 | |
| Spire, Inc. | 1,591 | | 114,981 | |
| | 688,597 | |
| Health Care Equipment and Supplies — 0.8% | | |
| Becton Dickinson and Co. | 377 | | 91,683 | |
| Medtronic plc | 2,142 | | 265,886 | |
| | 357,569 | |
| Health Care Providers and Services — 0.5% | | |
Centene Corp.(2) | 1,586 | | 115,667 | |
| Universal Health Services, Inc., Class B | 725 | | 106,162 | |
| | 221,829 | |
| Health Care Technology — 0.5% | | |
| Cerner Corp. | 3,028 | | 236,668 | |
| Household Durables — 5.3% | | |
| Electrolux AB, Series B | 3,727 | | 103,283 | |
| Lennar Corp., Class B | 28,925 | | 2,355,941 | |
| | 2,459,224 | |
| Insurance — 3.3% | | |
| Globe Life, Inc. | 2,443 | | 232,696 | |
| Hartford Financial Services Group, Inc. (The) | 5,486 | | 339,967 | |
| Marsh & McLennan Cos., Inc. | 3,353 | | 471,700 | |
| Principal Financial Group, Inc. | 7,690 | | 485,931 | |
| | 1,530,294 | |
| IT Services — 0.6% | | |
| Automatic Data Processing, Inc. | 822 | | 163,266 | |
| Visa, Inc., Class A | 414 | | 96,801 | |
| | 260,067 | |
| Machinery — 6.6% | | |
Alfa Laval AB(1) | 1,894 | | 66,944 | |
Atlas Copco AB, B Shares(1) | 40,875 | | 2,152,740 | |
Deere & Co.(1) | 1,397 | | 492,736 | |
PACCAR, Inc.(1) | 1,673 | | 149,315 | |
Schindler Holding AG, Bearer Participation Certificate(1) | 519 | | 158,832 | |
| | 3,020,567 | |
| Media — 4.9% | | |
| Fox Corp., Class B | 63,959 | | 2,251,357 | |
| | |
| | | | | | | | |
| Metals and Mining — 0.3% | | |
| Freeport-McMoRan, Inc. | 3,139 | | 116,488 | |
| Multi-Utilities — 0.2% | | |
| CMS Energy Corp. | 1,935 | | 114,320 | |
| Multiline Retail — 0.3% | | |
Dollar Tree, Inc.(2) | 1,277 | | 127,062 | |
| Oil, Gas and Consumable Fuels — 6.2% | | |
| Enterprise Products Partners LP | 5,377 | | 129,747 | |
| Galp Energia SGPS SA | 9,585 | | 104,214 | |
| Royal Dutch Shell plc, Class B ADR | 59,266 | | 2,301,299 | |
| TotalEnergies SE, ADR | 7,461 | | 337,685 | |
| | 2,872,945 | |
| Paper and Forest Products — 0.3% | | |
| Mondi plc | 5,272 | | 138,803 | |
| Personal Products — 1.1% | | |
| Unilever plc, ADR | 8,565 | | 501,052 | |
| Pharmaceuticals — 2.1% | | |
| Johnson & Johnson | 2,686 | | 442,492 | |
| Merck & Co., Inc. | 1,692 | | 131,587 | |
| Roche Holding AG, ADR | 8,350 | | 392,366 | |
| | 966,445 | |
| Road and Rail — 1.0% | | |
| Heartland Express, Inc. | 5,900 | | 101,067 | |
| Norfolk Southern Corp. | 441 | | 117,046 | |
| Union Pacific Corp. | 1,025 | | 225,428 | |
| | 443,541 | |
| Semiconductors and Semiconductor Equipment — 0.6% | | |
| Applied Materials, Inc. | 1,852 | | 263,725 | |
| Software — 0.8% | | |
| Microsoft Corp. | 1,373 | | 371,946 | |
| Specialty Retail — 0.6% | | |
| Advance Auto Parts, Inc. | 509 | | 104,416 | |
| TJX Cos., Inc. (The) | 2,706 | | 182,439 | |
| | 286,855 | |
| Textiles, Apparel and Luxury Goods — 0.2% | | |
Tapestry, Inc.(2) | 2,584 | | 112,352 | |
TOTAL COMMON STOCKS (Cost $19,630,499) | | 28,854,129 | |
| CONVERTIBLE BONDS — 12.8% |
|
|
| Automobiles — 4.3% | | |
| Tesla, Inc., 2.00%, 5/15/24 | 184,000 | | 2,012,739 | |
| Semiconductors and Semiconductor Equipment — 8.5% | | |
| Microchip Technology, Inc., 0.125%, 11/15/24 | 1,368,000 | | 1,545,840 | |
| Teradyne, Inc., 1.25%, 12/15/23 | 556,000 | | 2,356,745 | |
| | 3,902,585 | |
TOTAL CONVERTIBLE BONDS (Cost $2,632,235) | | 5,915,324 | |
| EXCHANGE-TRADED FUNDS — 6.5% |
|
|
Consumer Discretionary Select Sector SPDR Fund(1) | 2,635 | | 470,480 | |
iShares Russell 1000 Value ETF(1) | 15,881 | | 2,519,044 | |
TOTAL EXCHANGE-TRADED FUNDS (Cost $1,852,460) | | 2,989,524 | |
| TEMPORARY CASH INVESTMENTS — 15.7% |
|
|
| Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.125% - 2.75%, 5/15/23 - 10/31/27, valued at $2,325,552), in a joint trading account at 0.01%, dated 6/30/21, due 7/1/21 (Delivery value $2,279,863) | | 2,279,862 | |
| | | | | | | | |
| Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.875%, 5/15/43, valued at $3,876,063), at 0.02%, dated 6/30/21, due 7/1/21 (Delivery value $3,800,002) | | 3,800,000 | |
| State Street Institutional U.S. Government Money Market Fund, Premier Class | 1,138,162 | | 1,138,162 | |
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $7,218,024) | | 7,218,024 | |
TOTAL INVESTMENT SECURITIES BEFORE SECURITIES SOLD SHORT — 97.7%
(Cost $31,333,218) |
| 44,977,001 | |
| SECURITIES SOLD SHORT — (81.1)% | | |
| COMMON STOCKS SOLD SHORT — (73.1)% | | |
| Aerospace and Defense — (5.1)% | | |
| HEICO Corp. | (15,791) | | (2,201,581) | |
| Northrop Grumman Corp. | (396) | | (143,919) | |
| | (2,345,500) | |
| Air Freight and Logistics — (0.3)% | | |
| FedEx Corp. | (397) | | (118,437) | |
| Automobiles — (5.7)% | | |
| Ford Motor Co. | (18,546) | | (275,594) | |
| Tesla, Inc. | (2,969) | | (2,018,029) | |
| Volkswagen AG | (999) | | (328,337) | |
| | (2,621,960) | |
| Banks — (2.3)% | | |
| Bank of America Corp. | (5,613) | | (231,424) | |
| Bank OZK | (4,215) | | (177,704) | |
| Citigroup, Inc. | (3,265) | | (230,999) | |
| M&T Bank Corp. | (1,537) | | (223,342) | |
| National Bank of Canada | (2,893) | | (216,508) | |
| | (1,079,977) | |
| Beverages — (1.0)% | | |
| Heineken NV | (3,853) | | (467,752) | |
| Building Products — (1.2)% | | |
| Carrier Global Corp. | (3,471) | | (168,690) | |
| Daikin Industries Ltd. | (700) | | (130,445) | |
| Fortune Brands Home & Security, Inc. | (2,344) | | (233,486) | |
| | (532,621) | |
| Capital Markets — (1.5)% | | |
| FactSet Research Systems, Inc. | (343) | | (115,114) | |
| Franklin Resources, Inc. | (12,702) | | (406,337) | |
| State Street Corp. | (2,216) | | (182,333) | |
| | (703,784) | |
| Chemicals — (2.1)% | | |
| Air Products and Chemicals, Inc. | (2,007) | | (577,374) | |
| PPG Industries, Inc. | (2,216) | | (376,210) | |
| | (953,584) | |
| Commercial Services and Supplies — (1.0)% | | |
| Waste Management, Inc. | (3,284) | | (460,121) | |
| Communications Equipment — (0.7)% | | |
| Arista Networks, Inc. | (898) | | (325,354) | |
| Containers and Packaging — (0.3)% | | |
| International Paper Co. | (1,994) | | (122,252) | |
| Distributors — (0.2)% | | |
| Genuine Parts Co. | (798) | | (100,923) | |
| Diversified Telecommunication Services — (0.5)% | | |
| Lumen Technologies, Inc. | (17,163) | | (233,245) | |
| Electric Utilities — (1.3)% | | |
| American Electric Power Co., Inc. | (3,695) | | (312,560) | |
| | | | | | | | |
| Southern Co. (The) | (4,586) | | (277,499) | |
| | (590,059) | |
| Electronic Equipment, Instruments and Components — (0.2)% | | |
| Keysight Technologies, Inc. | (670) | | (103,455) | |
| Energy Equipment and Services — (0.7)% | | |
| Schlumberger NV | (10,238) | | (327,718) | |
| Entertainment — (0.4)% | | |
| AMC Entertainment Holdings, Inc., Class A | (999) | | (56,623) | |
| Walt Disney Co. (The) | (652) | | (114,602) | |
| | (171,225) | |
| Equity Real Estate Investment Trusts (REITs) — (1.2)% | | |
| Brixmor Property Group, Inc. | (8,254) | | (188,934) | |
| SL Green Realty Corp. | (1,988) | | (159,040) | |
| Ventas, Inc. | (3,543) | | (202,305) | |
| | (550,279) | |
| Food and Staples Retailing — (1.6)% | | |
| Kroger Co. (The) | (4,696) | | (179,904) | |
| US Foods Holding Corp. | (14,595) | | (559,864) | |
| | (739,768) | |
| Food Products — (0.5)% | | |
| Campbell Soup Co. | (1,489) | | (67,884) | |
| Hormel Foods Corp. | (3,494) | | (166,838) | |
| | (234,722) | |
| Health Care Equipment and Supplies — (0.8)% | | |
| Abbott Laboratories | (813) | | (94,251) | |
| Stryker Corp. | (1,036) | | (269,080) | |
| | (363,331) | |
| Health Care Providers and Services — (0.5)% | | |
| HCA Healthcare, Inc. | (535) | | (110,606) | |
| UnitedHealth Group, Inc. | (291) | | (116,528) | |
| | (227,134) | |
| Household Durables — (5.7)% | | |
| Husqvarna AB, B Shares | (7,711) | | (102,481) | |
| Lennar Corp., Class A | (23,772) | | (2,361,748) | |
| Whirlpool Corp. | (809) | | (176,378) | |
| | (2,640,607) | |
| Household Products — (1.1)% | | |
| Procter & Gamble Co. (The) | (3,694) | | (498,431) | |
| Insurance — (3.3)% | | |
| Aon plc, Class A | (1,980) | | (472,745) | |
| Prudential Financial, Inc. | (4,741) | | (485,810) | |
| Travelers Cos., Inc. (The) | (2,298) | | (344,034) | |
| Unum Group | (8,386) | | (238,162) | |
| | (1,540,751) | |
| Internet and Direct Marketing Retail — (0.8)% | | |
| Amazon.com, Inc. | (107) | | (368,097) | |
| IT Services — (0.6)% | | |
| Mastercard, Inc., Class A | (269) | | (98,209) | |
| Paychex, Inc. | (1,579) | | (169,427) | |
| | (267,636) | |
| Machinery — (7.3)% | | |
| AGCO Corp. | (3,792) | | (494,401) | |
| Atlas Copco AB, A Shares | (36,090) | | (2,216,228) | |
| Caterpillar, Inc. | (1,601) | | (348,426) | |
| Kone Oyj, B Shares | (1,911) | | (155,965) | |
| | | | | | | | |
| Volvo AB, B Shares | (5,995) | | (144,476) | |
| | (3,359,496) | |
| Media — (4.9)% | | |
| Fox Corp., Class A | (60,881) | | (2,260,512) | |
| Metals and Mining — (0.3)% | | |
| Antofagasta plc | (5,793) | | (115,199) | |
| Multi-Utilities — (0.6)% | | |
| Consolidated Edison, Inc. | (3,677) | | (263,714) | |
| Multiline Retail — (0.3)% | | |
| Ollie's Bargain Outlet Holdings, Inc. | (1,472) | | (123,839) | |
| Oil, Gas and Consumable Fuels — (6.0)% | | |
| Chevron Corp. | (1,988) | | (208,223) | |
| Royal Dutch Shell plc, Class A ADR | (56,999) | | (2,302,760) | |
| Valero Energy Corp. | (3,122) | | (243,766) | |
| | (2,754,749) | |
| Paper and Forest Products — (0.3)% | | |
| UPM-Kymmene Oyj | (3,586) | | (135,758) | |
| Pharmaceuticals — (2.5)% | | |
| AstraZeneca plc, ADR | (7,234) | | (433,317) | |
| Bristol-Myers Squibb Co. | (5,985) | | (399,918) | |
| Pfizer, Inc. | (3,295) | | (129,032) | |
| Sanofi | (1,999) | | (210,020) | |
| | (1,172,287) | |
| Road and Rail — (1.0)% | | |
| CSX Corp. | (10,758) | | (345,116) | |
| Werner Enterprises, Inc. | (2,284) | | (101,684) | |
| | (446,800) | |
| Semiconductors and Semiconductor Equipment — (7.6)% | | |
| Lam Research Corp. | (392) | | (255,074) | |
| Microchip Technology, Inc. | (5,725) | | (857,262) | |
| Teradyne, Inc. | (17,660) | | (2,365,734) | |
| | (3,478,070) | |
| Specialty Retail — (1.5)% | | |
| Burlington Stores, Inc. | (579) | | (186,432) | |
| Carvana Co. | (740) | | (223,347) | |
| Signet Jewelers Ltd. | (1,357) | | (109,632) | |
| Tractor Supply Co. | (997) | | (185,502) | |
| | (704,913) | |
| Textiles, Apparel and Luxury Goods — (0.2)% | | |
| VF Corp. | (1,391) | | (114,118) | |
TOTAL COMMON STOCKS SOLD SHORT (Proceeds $19,790,767) | | (33,618,178) | |
| EXCHANGE-TRADED FUNDS SOLD SHORT — (8.0)% | | |
| Alerian MLP ETF | (3,532) | | (128,600) | |
| ARK Innovation ETF | (1,397) | | (182,700) | |
| Health Care Select Sector SPDR Fund | (1,931) | | (243,209) | |
| iShares Russell 1000 Growth ETF | (8,597) | | (2,333,914) | |
| Utilities Select Sector SPDR Fund | (12,928) | | (817,437) | |
TOTAL EXCHANGE-TRADED FUNDS SOLD SHORT (Proceeds $2,408,607) | | (3,705,860) | |
TOTAL SECURITIES SOLD SHORT — (81.1)% (Proceeds $22,199,374) | | (37,324,038) | |
| OTHER ASSETS AND LIABILITIES — 83.4% |
| 38,362,517 | |
| TOTAL NET ASSETS — 100.0% |
| $ | 46,015,480 | |
| | | | | | | | | | | | | | | | | | | | |
| FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS |
| Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) |
| CAD | 2,317 | | USD | 1,885 | | Morgan Stanley | 9/30/21 | $ | (16) | |
| CAD | 71 | | USD | 58 | | Morgan Stanley | 9/30/21 | — | |
| CAD | 806 | | USD | 656 | | Morgan Stanley | 9/30/21 | (6) | |
| USD | 2,184 | | CAD | 2,706 | | Morgan Stanley | 9/30/21 | 1 | |
| USD | 363 | | CAD | 450 | | Morgan Stanley | 9/30/21 | 1 | |
| USD | 468,187 | | CHF | 429,557 | | Morgan Stanley | 9/30/21 | 2,830 | |
| EUR | 9,474 | | USD | 11,298 | | Credit Suisse AG | 9/30/21 | (43) | |
| EUR | 11,070 | | USD | 13,230 | | Goldman Sachs & Co. | 9/30/21 | (80) | |
| USD | 461,066 | | EUR | 386,534 | | Goldman Sachs & Co. | 9/30/21 | 1,890 | |
| GBP | 3,653 | | USD | 5,089 | | JPMorgan Chase Bank N.A. | 9/30/21 | (35) | |
| GBP | 4,242 | | USD | 5,898 | | JPMorgan Chase Bank N.A. | 9/30/21 | (28) | |
| GBP | 70,901 | | USD | 98,420 | | JPMorgan Chase Bank N.A. | 9/30/21 | (323) | |
| GBP | 2,863 | | USD | 3,966 | | JPMorgan Chase Bank N.A. | 9/30/21 | (5) | |
| GBP | 7,410 | | USD | 10,232 | | JPMorgan Chase Bank N.A. | 9/30/21 | 20 | |
| USD | 46,274 | | GBP | 33,244 | | JPMorgan Chase Bank N.A. | 9/30/21 | 278 | |
| USD | 11,734 | | GBP | 8,399 | | JPMorgan Chase Bank N.A. | 9/30/21 | 114 | |
| JPY | 3,205,775 | | USD | 28,986 | | Bank of America N.A. | 9/30/21 | (107) | |
| JPY | 409,275 | | USD | 3,694 | | Bank of America N.A. | 9/30/21 | (7) | |
| JPY | 173,825 | | USD | 1,571 | | Bank of America N.A. | 9/30/21 | (5) | |
| USD | 2,105 | | JPY | 232,560 | | Bank of America N.A. | 9/30/21 | 10 | |
| USD | 1,265 | | JPY | 139,825 | | Bank of America N.A. | 9/30/21 | 6 | |
| SEK | 1,178,270 | | USD | 138,395 | | UBS AG | 9/30/21 | (601) | |
| SEK | 52,717 | | USD | 6,231 | | UBS AG | 9/30/21 | (66) | |
| SEK | 100,126 | | USD | 11,777 | | UBS AG | 9/30/21 | (68) | |
| USD | 12,669 | | SEK | 107,394 | | UBS AG | 9/30/21 | 109 | |
| USD | 12,292 | | SEK | 104,283 | | UBS AG | 9/30/21 | 96 | |
| USD | 1,097 | | SEK | 9,339 | | UBS AG | 9/30/21 | 5 | |
| | | | | | $ | 3,970 | |
| | | | | | | | |
| NOTES TO SCHEDULE OF INVESTMENTS |
| ADR | - | American Depositary Receipt |
| CAD | - | Canadian Dollar |
| CHF | - | Swiss Franc |
| EUR | - | Euro |
| GBP | - | British Pound |
| JPY | - | Japanese Yen |
| SEK | - | Swedish Krona |
| USD | - | United States Dollar |
(1)Security, or a portion thereof, has been pledged at the custodian bank or with a broker for collateral requirements on securities sold short. At the period end, the aggregate value of securities pledged was $8,410,824.
(2)Non-income producing.
SUPPLEMENTARY NOTES TO SCHEDULE OF INVESTMENTS
1. Investment Valuations
The fund determines the fair value of its investments and computes its net asset value (NAV) per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Fixed income securities are valued at the evaluated mean as provided by independent pricing services or at the mean of the most recent bid and asked prices as provided by investment dealers. Corporate and convertible bonds are valued using market models that consider trade data, quotations from dealers and active market makers, relevant yield curve and spread data, creditworthiness, trade data or market information on comparable securities, and other relevant security specific information.
Hybrid securities are valued at the evaluated mean as provided by independent pricing services or at the mean of the most recent bid and asked prices as provided by investment dealers. Preferred stocks and convertible preferred stocks with perpetual maturities are valued using market models that consider trade data, quotations from dealers and active market makers, relevant yield curve and spread data, creditworthiness, trade data or market information on comparable securities, and other relevant security specific information.
Open-end management investment companies are valued at the reported NAV per share. Repurchase agreements are valued at cost, which approximates fair value. Forward foreign currency exchange contracts are valued at the mean of the appropriate forward exchange rate at the close of the NYSE as provided by an independent pricing service.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
2. 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 | | | |
| Automobiles | 277,448 | | 328,208 | | — | |
| Banks | 860,342 | | 218,030 | | — | |
| Beverages | — | | 459,236 | | — | |
| Chemicals | 698,058 | | 250,861 | | — | |
| Electronic Equipment, Instruments and Components | — | | 96,860 | | — | |
| Food and Staples Retailing | 733,414 | | 185,110 | | — | |
| Household Durables | 2,355,941 | | 103,283 | | — | |
| Machinery | 642,051 | | 2,378,516 | | — | |
| Oil, Gas and Consumable Fuels | 2,768,731 | | 104,214 | | — | |
| Paper and Forest Products | — | | 138,803 | | — | |
| Other Industries | 16,255,023 | | — | | — | |
| Convertible Bonds | — | | 5,915,324 | | — | |
| Exchange-Traded Funds | 2,989,524 | | — | | — | |
| Temporary Cash Investments | 1,138,162 | | 6,079,862 | | — | |
| 28,718,694 | | 16,258,307 | | — | |
| Other Financial Instruments | | | |
| Forward Foreign Currency Exchange Contracts | — | | 5,360 | | — | |
| Liabilities | | | |
| Securities Sold Short | | | |
| Common Stocks | | | |
| Automobiles | 2,293,623 | | 328,337 | | — | |
| Banks | 863,469 | | 216,508 | | — | |
| Beverages | — | | 467,752 | | — | |
| Building Products | 402,176 | | 130,445 | | — | |
| Household Durables | 2,538,126 | | 102,481 | | — | |
| Machinery | 842,827 | | 2,516,669 | | — | |
| Metals and Mining | — | | 115,199 | | — | |
| Paper and Forest Products | — | | 135,758 | | — | |
| Pharmaceuticals | 962,267 | | 210,020 | | — | |
| Other Industries | 21,492,521 | | — | | — | |
| Exchange-Traded Funds | 3,705,860 | | — | | — | |
| 33,100,869 | | 4,223,169 | | — | |
| Other Financial Instruments | | | |
| Forward Foreign Currency Exchange Contracts | — | | 1,390 | | — | |
This schedule of investments provides information about the fund’s portfolio holdings as of the date on the schedule. It is unaudited, and American Century Investments assumes no obligation to update or supplement the schedule to reflect subsequent changes. More information is available in the fund’s most recent annual or semiannual shareholder report.
