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 | 811-21591 | |||||
AMERICAN CENTURY ASSET ALLOCATION PORTFOLIOS, INC. | ||||||
(Exact name of registrant as specified in charter) | ||||||
4500 MAIN STREET, KANSAS CITY, MISSOURI | 64111 | |||||
(Address of principal executive offices) | (Zip Code) | |||||
CHARLES A. ETHERINGTON 4500 MAIN STREET, KANSAS CITY, MISSOURI 64111 | ||||||
(Name and address of agent for service) | ||||||
Registrant’s telephone number, including area code: | 816-531-5575 | |||||
Date of fiscal year end: | 07-31 | |||||
Date of reporting period: | 07-31-2014 | |||||
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL REPORT | JULY 31, 2014 |
One Choice Portfolio®: Very Conservative
One Choice Portfolio®: Conservative
One Choice Portfolio®: Moderate
One Choice Portfolio®: Aggressive
One Choice Portfolio®: Very Aggressive
Table of Contents |
President’s Letter | |
Performance | |
Portfolio Commentary | |
Portfolio Characteristics | |
Shareholder Fee Examples | |
Schedules of Investments | |
Statements of Assets and Liabilities | |
Statements of Operations | |
Statements 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 |
 | Dear Investor: Thank you for reviewing this annual report for the 12 months ended July 31, 2014. It provides investment performance and portfolio information for the reporting period, plus longer-term historical performance data. Annual reports remain important vehicles for conveying information about fund returns, including market and economic factors that affected performance during the reporting period. For additional, updated investment and market insights, we encourage you to visit our website, americancentury.com. |
Jonathan Thomas | |
Aggressive Monetary Policies, as Investors Sought Risk and Yield, Boosted Returns
Stimulative monetary policies and expectations of longer-term economic improvement, interspersed with concerns about nearer-term weaker-than-expected economic data and geopolitical conflicts, helped drive financial market returns during the reporting period. We believe the combination of longer-term optimism about global economic growth, low costs of capital, and central bank purchases of fixed-income securities helped persuade investors to seek risk and yield. Broad stock market index returns were largely in the 10-20% range across the spectrum of developed versus emerging and large-cap versus small-cap markets. The S&P 500 Index, the MSCI EAFE Index, and the MSCI Emerging Markets Index advanced 16.94%, 15.07%, and 15.32%, respectively.
Bond performance was also generally solid, which was a surprise, given pre-2014 expectations for rising inflation and interest rates. Inflation showed signs of increasing, but remained contained, and interest rates actually fell in many markets. According to Bloomberg, the 10-year U.S. Treasury yield edged downward from 2.59% to 2.56% during the 12 months, while the 30-year U.S. Treasury yield fell from 3.65% to 3.32%. This “bull market flattening” of the U.S. Treasury yield curve helped produce a total return of 9.74% for the 30-year U.S. Treasury bond, according to Barclays. Indices that tracked U.S. high-yield and investment-grade corporate bonds and mortgage-backed securities also generally outperformed the broad Barclays U.S. Aggregate Bond Index, which advanced 3.97%.
Looking ahead, we see signs of sustained economic growth for the remainder of 2014, but headwinds persist. In the U.S., which was supposed to be an economic growth leader this year, housing market momentum has slowed, inflation and interest rates could rise, and economic growth and U.S. employment levels remain subpar compared with past post-recession periods. In this environment, we continue to believe in a disciplined, diversified, long-term investment approach, using professionally managed stock and bond portfolios—as appropriate—for meeting financial goals. We appreciate your continued trust in us.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Performance |
Total Returns as of July 31, 2014 | |||||
Average Annual Returns | |||||
Ticker Symbol | 1 year | 5 years | Since Inception | Inception Date | |
One Choice Portfolio: Very Conservative — Investor Class | AONIX | 5.99% | 6.30% | 5.01% | 9/30/04 |
One Choice Portfolio: Conservative — Investor Class | AOCIX | 8.43% | 9.07% | 6.22% | 9/30/04 |
One Choice Portfolio: Moderate — Investor Class | AOMIX | 10.51% | 11.21% | 7.28% | 9/30/04 |
One Choice Portfolio: Aggressive — Investor Class | AOGIX | 12.26% | 12.82% | 7.90% | 9/30/04 |
One Choice Portfolio: Very Aggressive — Investor Class | AOVIX | 13.94% | 14.09% | 8.12% | 9/30/04 |
Russell 3000 Index | — | 16.37% | 17.07% | 8.36% | — |
Barclays U.S. Aggregate Bond Index | — | 3.97% | 4.46% | 4.66% | — |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for each portfolio’s asset allocations as of the date of this report.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and the risk level assigned to each portfolio is intended to reflect the relative short-term price volatility among the funds in each.
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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses that reduce returns, while the total returns of the indices do not.
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Growth of $10,000 Over Life of One Choice Portfolio: Very Conservative |
$10,000 investment made September 30, 2004 |
Value on July 31, 2014 | |
Investor Class — $16,169 | |
Russell 3000 Index — $22,035 | |
Barclays U.S. Aggregate Bond Index — $15,646 | |
*From September 30, 2004, the Investor Class’s inception date. Not annualized.
Growth of $10,000 Over Life of One Choice Portfolio: Conservative |
$10,000 investment made September 30, 2004 |
Value on July 31, 2014 | |
Investor Class — $18,109 | |
Russell 3000 Index — $22,035 | |
Barclays U.S. Aggregate Bond Index — $15,646 | |
*From September 30, 2004, the Investor Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and the risk level assigned to each portfolio is intended to reflect the relative short-term price volatility among the funds in each.
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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses that reduce returns, while the total returns of the indices do not.
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Growth of $10,000 Over Life of One Choice Portfolio: Moderate |
$10,000 investment made September 30, 2004 |
Value on July 31, 2014 | |
Investor Class — $19,970 | |
Russell 3000 Index — $22,035 | |
Barclays U.S. Aggregate Bond Index — $15,646 | |
*From September 30, 2004, the Investor Class’s inception date. Not annualized.
Growth of $10,000 Over Life of One Choice Portfolio: Aggressive |
$10,000 investment made September 30, 2004 |
Value on July 31, 2014 | |
Investor Class — $21,137 | |
Russell 3000 Index — $22,035 | |
Barclays U.S. Aggregate Bond Index — $15,646 | |
*From September 30, 2004, the Investor Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and the risk level assigned to each portfolio is intended to reflect the relative short-term price volatility among the funds in each.
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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses that reduce returns, while the total returns of the indices do not.
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Growth of $10,000 Over Life of One Choice Portfolio: Very Aggressive |
$10,000 investment made September 30, 2004 |
Value on July 31, 2014 | |
Investor Class — $21,562 | |
Russell 3000 Index — $22,035 | |
Barclays U.S. Aggregate Bond Index — $15,646 | |
*From September 30, 2004, the Investor Class’s inception date. Not annualized.
Total Annual Fund Operating Expenses | |
One Choice Portfolio: Very Conservative — Investor Class | 0.64% |
One Choice Portfolio: Conservative — Investor Class | 0.75% |
One Choice Portfolio: Moderate — Investor Class | 0.88% |
One Choice Portfolio: Aggressive — Investor Class | 0.98% |
One Choice Portfolio: Very Aggressive — Investor Class | 1.06% |
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. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and the risk level assigned to each portfolio is intended to reflect the relative short-term price volatility among the funds in each.
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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses that reduce returns, while the total returns of the indices do not.
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Portfolio Commentary |
Portfolio Managers: Scott Wittman, Rich Weiss, Scott Wilson, Radu Gabudean, and David MacEwen
In December 2013, David MacEwen, Senior Vice President became Co-Chief Investment Officer and chairman of the firm's Asset Allocation Committee.
Performance Summary
Each of the five One Choice Target Risk Portfolios advanced for the fiscal year ended July 31, 2014, with returns ranging from 5.99% for One Choice Portfolio: Very Conservative to 13.94% for One Choice Portfolio: Very Aggressive (see pages 3-6 for more detailed performance information). The gains for the 12-month period reflected solid returns of both global equity and fixed-income markets, which rallied on signs of continued global economic growth and accommodative monetary policies enacted by central banks around the globe.
Because of the Portfolios’ strategic exposure to a variety of asset classes, a review of the financial markets helps explain much of their performance.
Market Overview
Global equity markets appreciated during the fiscal year, driven in large part by continued signs of steady, albeit slow, growth. A commitment by central banks around the world to create an environment stimulative of growth while avoiding deflation supported equities. Although the U.S. Federal Reserve (the Fed) began gradual tapering of its monthly quantitative easing (QE) program, continued Fed support drove markets as broad U.S. indices staged record-breaking rallies several times during the period. U.S. equities took a breather during an unusually harsh winter that pressured the already-tepid economic recovery. Slowdowns were seen in several key areas including sales of consumer discretionary items such as appliances and autos, as well as construction, real estate, and energy. Flaring political tensions in several regions, including Russia/Ukraine and the Middle East, also dampened equity returns. A spring/summer rebound sent markets to record highs on the heels of encouraging industrial production, consumer data, and the lowest unemployment level in nearly six years. Large-cap U.S. equities led both the small- and mid-cap segments, and despite a stark divergence in performance during the winter, growth stocks finished the period ahead of their value counterparts. Broad non-U.S. markets, both developed and emerging, also produced strong results, marginally trailing those of the U.S. but ending the period with double-digit gains.
The U.S. bond market produced positive returns for the 12-months ending July 31, 2014, driven in large part by the rally that ushered in 2014. Much of the period was characterized by a heightened appetite for risk and demand for yield as investors gravitated toward higher-yielding securities. Bond yields fluctuated throughout the period, rising during the early part of the fiscal year due to uncertainty surrounding the beginning of the end of the Fed’s stimulus program. Weaker-than-expected economic activity coupled with geopolitical tensions at the beginning of 2014 helped drive down U.S. Treasury yields, which declined again following an unexpectedly large first-quarter GDP revision. Given the risk-on environment, high-yield corporate bonds and longer-duration/maturity securities were among the best performers, although all sectors of the U.S. bond market advanced. Particular strength was seen in long-term U.S. Treasuries, municipal bonds, and high-yield bonds, which led investment grade bonds. Non-U.S. bonds also ended the period with strong results, outperforming those of the U.S. as the European Central Bank eased monetary policy and Japan continued aggressive easing efforts.
7
Portfolio Performance
Each One Choice Target Risk Portfolio is a “fund of funds” that invests in other American Century Investments mutual funds to achieve its investment objective and target asset allocation. (See page 10 for the specific underlying fund allocations for each Portfolio.)
Within the Portfolios, each equity fund, both U.S. and non-U.S., produced positive returns for the 12-month period. Core Equity Plus Fund generated the best absolute performance, producing a return of 18.54%. Other leading absolute performers included Equity Growth Fund and Growth Fund, although the latter underperformed its underlying fund benchmark. Small Company Fund generated strong outperformance of its underlying fund benchmark and contributed significantly to results across all Portfolios. Underperformance among equity funds, relative to their underlying fund benchmarks, also came from International Growth Fund (which was not held by Very Conservative Portfolio). Heritage Fund, Large Company Value Fund and Mid Cap Value Fund also underperformed their underlying benchmarks.
Each of the Portfolios’ fixed-income components also advanced. Top absolute performance in the fixed-income space came from High-Yield Fund (held only by Moderate and Aggressive), and International Bond Fund (held only by Very Conservative, Conservative, and Moderate). Despite strong absolute performance, unsuccessful security selection in those funds led them to underperform their underlying fund benchmarks. Inflation-Adjusted Bond Fund (not held by Very Aggressive) and Short Duration Inflation Protection Bond Fund (held only by Very Conservative) also underperformed their respective fund benchmarks. Diversified Bond Fund, the largest fixed-income segment in the Portfolios, outperformed its benchmark for the 12-month period, contributing positively to performance across all Portfolios. The fund’s underweight positioning in Treasuries and government securities in favor of corporate credit and the securitized sector was beneficial to results.
Portfolio Strategy
Each Portfolio has a “neutral” asset mix (the target allocations for stocks, bonds, and cash-equivalent investments) that remains fixed over time. Our management approach involves making modest tactical adjustments to each Portfolio’s actual asset mix to add value and improve the Portfolios’ ability to meet their investment objectives.
Early in the period we initiated a modest overweight position to equities, with a subsequent underweight position in bonds. During the second half of the reporting period we also moved to a slight underweight position in cash, opting to add more equity exposure to the Portfolios. The sole exception to this was Very Conservative, in which we maintained an underweight position in cash for the entire period, preferring exposure to Short Duration Inflation Protection Bond Fund and Short Duration Fund. This tactical positioning benefited overall performance given equities’ outperformance of bonds.
We made some modest adjustments to our tactical positioning within the stock and bond components of the Portfolios over the course of the reporting period. Early in the fiscal year, we moved to an overweight position in Small Company Fund while retaining the overweight position in Growth Fund (large-cap growth) and corresponding underweight position in Large Company Value Fund within the equity component. Overall, this tactical posture bolstered the Portfolios’ results given growth equities’ outperformance of value for much of the period. Added exposure to Small Company Fund was likewise beneficial as a result of small-cap stocks’ outperformance of large-caps during the first part of the reporting period.
A modification approved by the Asset Allocation Committee took effect in the Portfolios during late 2013. The Vista strategy was replaced by the Heritage strategy in the mid-cap segment of the Portfolios. The decision was supported by a thorough analysis of the strategy's investment process, performance track record, risk management, and manager tenure/expertise. In early 2014
8
a slight overweight position was applied to Heritage Fund, which was detrimental, on balance, due to mid-cap equities’ underperformance of large-cap stocks during the first half of 2014.
Slight tactical shifts were also enacted in the Portfolios’ fixed-income component. In light of heightened market volatility, we brought the overweight position in High-Yield Fund back to neutral early in the fiscal year in those Portfolios with exposure to high-yield bonds (Moderate and Aggressive), while maintaining the underweight position in Diversified Bond Fund. During the latter part of the reporting period we further increased the magnitude of the underweight position in Diversified Bond Fund and reinstated the overweight position in High-Yield Fund (this positioning applied only to those Portfolios with an existing allocation to High-Yield Fund).
A Look Ahead
We believe that global economic recovery will continue to progress, albeit at a slower pace than during prior post-recessionary periods, and we expect it to stay the course through the remainder of 2014. Recent indicators such as improvements in small business and consumer confidence suggest a sustainable rebound in the U.S., and economic growth is likely to further benefit from the recovering labor and housing markets. The Fed is expected to continue its tapering of QE as labor market conditions improve which is likely to lead to moderately higher interest rates. Despite mixed data, Europe seems poised to continue its rebound, especially those countries and sectors that have made meaningful progress in structural reform. While accommodative monetary policy is expected to remain in place in the eurozone, interest rates in the U.K. could rise if economic recovery proceeds at the pace seen recently. Asia remains an area to carefully monitor given a number of unknowns including the impact of Japan’s recent tax hike and the long-term effectiveness of economic reforms on the country’s recovery. Likewise, we are closely watching the effects of government reform programs on China’s growth. Though a continuation of financial and political instability as well as the potential for rising inflation and interest rates could lead to heightened levels of market volatility, resilient global demand and continued accommodative monetary policy are supportive for emerging markets, which have seen a pickup in exports, appear attractive on valuations, and could gain further momentum. Interest rates are likely to remain relatively low and rise only gradually, and tame inflation combined with stimulative monetary policies are supportive of global growth and financial markets.
Given this backdrop, we continue to favor equities over bonds and cash-equivalent investments. We think that the recent rally in bonds has been driven by transitory factors. If interest rates rise because the economy is improving, then that would likely be positive (or at least not as detrimental) to equities. Within equities, we favor large-cap growth over value given lower relative valuation levels of growth equities, continued low inflation, and a higher than normal equity risk premium over bonds, and we continued to prefer small-cap core holdings.
Our fixed-income positioning reflects our expectation for better growth in the U.S., which suggests upward pressure on interest rates and inflation. For example, within Diversified Bond Fund, the Portfolios' largest fixed income allocation, we’re underweight in Treasury and government agency bonds, and seek to avoid longer-term, more rate-sensitive bonds. Instead, we believe opportunities exist in short-term inflation-indexed securities and municipal bonds. Elsewhere in the fixed-income segment, we believe non-dollar bonds and high-yield corporates are attractive (for those Portfolios whose mandates allow exposure to these instruments).
9
Portfolio Characteristics |
Underlying Fund Allocations(1) as a % of net assets as of July 31, 2014 | |||||
One Choice Portfolio: Very Conservative | One Choice Portfolio: Conservative | One Choice Portfolio: Moderate | One Choice Portfolio: Aggressive | One Choice Portfolio: Very Aggressive | |
Equity | |||||
Core Equity Plus Fund | 1.0% | 1.9% | 3.9% | 4.6% | 4.8% |
Equity Growth Fund | 3.9% | 6.9% | 11.8% | 10.1% | 13.0% |
Growth Fund | 4.4% | 6.6% | 9.9% | 16.1% | 19.8% |
Heritage Fund | 2.5% | 4.8% | 7.9% | 13.8% | 17.2% |
Large Company Value Fund | 6.9% | 9.9% | 8.4% | 7.6% | 9.5% |
Mid Cap Value Fund | 5.0% | 6.7% | 5.4% | 4.9% | 6.1% |
Real Estate Fund | 2.0% | 2.0% | 2.0% | 2.2% | 2.0% |
Small Company Fund | 1.0% | 2.0% | 2.3% | 2.4% | 2.5% |
Emerging Markets Fund | — | — | 3.9% | 6.7% | 7.5% |
International Growth Fund | — | 5.9% | 9.9% | 12.1% | 15.3% |
Total Equity | 26.7% | 46.7% | 65.4% | 80.5% | 97.7% |
Fixed Income | |||||
Diversified Bond Fund | 31.2% | 29.2% | 17.3% | 9.3% | 2.0% |
High-Yield Fund | — | — | 4.0% | 5.7% | — |
Inflation-Adjusted Bond Fund | 10.0% | 9.0% | 6.0% | 4.0% | — |
Short Duration Fund | 7.1% | — | — | — | — |
Short Duration Inflation Protection Bond Fund | 8.0% | — | — | — | — |
International Bond Fund | 10.0% | 7.9% | 3.0% | — | — |
Total Fixed Income | 66.3% | 46.1% | 30.3% | 19.0% | 2.0% |
Prime Money Market Fund | 7.0% | 7.2% | 4.3% | 0.5% | 0.3% |
Other Assets and Liabilities | —(2) | —(2) | —(2) | —(2) | —(2) |
(1) | Underlying fund investments represent Investor Class. |
(2) | Category is less than 0.05% of total net assets. |
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Shareholder Fee Examples |
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. As a shareholder in the underlying American Century Investments funds, your fund will indirectly bear its pro rata share of the expenses incurred by the underlying funds. These expenses are not included in the fund’s annualized expense ratio or the expenses paid during the period. These expenses are, however, included in the effective expenses paid during the period.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from February 1, 2014 to July 31, 2014.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or Institutional Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual 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 $12.50 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 2/1/14 | Ending Account Value 7/31/14 | Expenses Paid During Period(1) 2/1/14 - 7/31/14 | Annualized Expense Ratio(1) | Effective Expenses Paid During Period(2) 2/1/14 - 7/31/14 | Effective Annualized Expense Ratio(2) | |
One Choice Portfolio: Very Conservative | ||||||
Actual | ||||||
Investor Class | $1,000 | $1,038.10 | $0.00 | 0.00%(3) | $3.34 | 0.66% |
Hypothetical | ||||||
Investor Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $3.31 | 0.66% |
One Choice Portfolio: Conservative | ||||||
Actual | ||||||
Investor Class | $1,000 | $1,048.20 | $0.00 | 0.00%(3) | $3.81 | 0.75% |
Hypothetical | ||||||
Investor Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $3.76 | 0.75% |
One Choice Portfolio: Moderate | ||||||
Actual | ||||||
Investor Class | $1,000 | $1,058.00 | $0.00 | 0.00%(3) | $4.39 | 0.86% |
Hypothetical | ||||||
Investor Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $4.31 | 0.86% |
One Choice Portfolio: Aggressive | ||||||
Actual | ||||||
Investor Class | $1,000 | $1,063.30 | $0.00 | 0.00%(3) | $4.91 | 0.96% |
Hypothetical | ||||||
Investor Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $4.81 | 0.96% |
One Choice Portfolio: Very Aggressive | ||||||
Actual | ||||||
Investor Class | $1,000 | $1,071.30 | $0.00 | 0.00%(3) | $5.24 | 1.02% |
Hypothetical | ||||||
Investor Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $5.11 | 1.02% |
(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 181, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. The fees and expenses of the underlying American Century Investments funds in which the fund invests are not included in the class's annualized expense ratio. |
(2) | Effective expenses reflect the sum of expenses borne directly by the class plus the fund's pro rata share of the weighted average expense ratio of the underlying funds in which it invests. The effective annualized expense ratio combines the class's annualized expense ratio and the annualized weighted average expense ratio of the underlying funds. The annualized weighted average expense ratio of the underlying funds for the one-half year period reflects the actual expense ratio of each underlying fund from its most recent shareholder report, annualized and weighted for the fund's relative average investment therein during the period. |
(3) | Other expenses, which include directors' fees and expenses, did not exceed 0.005%. |
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Schedules of Investments |
JULY 31, 2014
One Choice Portfolio: Very Conservative
Shares | Value | ||||
MUTUAL FUNDS(1) — 100.0% | |||||
DOMESTIC FIXED INCOME FUNDS — 56.3% | |||||
Diversified Bond Fund Investor Class | 10,265,612 | $ | 110,765,956 | ||
Inflation-Adjusted Bond Fund Investor Class | 2,968,784 | 35,625,413 | |||
Short Duration Fund Investor Class | 2,419,977 | 25,022,560 | |||
Short Duration Inflation Protection Bond Fund Investor Class | 2,759,362 | 28,559,396 | |||
199,973,325 | |||||
DOMESTIC EQUITY FUNDS — 26.7% | |||||
Core Equity Plus Fund Investor Class | 234,324 | 3,521,896 | |||
Equity Growth Fund Investor Class | 432,706 | 13,998,043 | |||
Growth Fund Investor Class | 465,132 | 15,763,310 | |||
Heritage Fund Investor Class | 341,273 | 8,770,710 | |||
Large Company Value Fund Investor Class | 2,867,540 | 24,517,470 | |||
Mid Cap Value Fund Investor Class | 1,041,021 | 17,593,261 | |||
Real Estate Fund Investor Class | 259,872 | 7,047,738 | |||
Small Company Fund Investor Class | 279,358 | 3,461,240 | |||
94,673,668 | |||||
INTERNATIONAL FIXED INCOME FUNDS — 10.0% | |||||
International Bond Fund Investor Class | 2,481,401 | 35,508,854 | |||
MONEY MARKET FUNDS — 7.0% | |||||
Prime Money Market Fund Investor Class | 25,009,253 | 25,009,253 | |||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $315,386,706) | 355,165,100 | ||||
OTHER ASSETS AND LIABILITIES† | (60 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 355,165,040 | |||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
13
JULY 31, 2014
One Choice Portfolio: Conservative
Shares | Value | ||||
MUTUAL FUNDS(1) — 100.0% | |||||
DOMESTIC EQUITY FUNDS — 40.8% | |||||
Core Equity Plus Fund Investor Class | 1,207,228 | $ | 18,144,640 | ||
Equity Growth Fund Investor Class | 1,969,618 | 63,717,139 | |||
Growth Fund Investor Class | 1,801,189 | 61,042,304 | |||
Heritage Fund Investor Class | 1,753,858 | 45,074,146 | |||
Large Company Value Fund Investor Class | 10,716,355 | 91,624,838 | |||
Mid Cap Value Fund Investor Class | 3,655,576 | 61,779,238 | |||
Real Estate Fund Investor Class | 699,140 | 18,960,665 | |||
Small Company Fund Investor Class | 1,474,446 | 18,268,387 | |||
378,611,357 | |||||
DOMESTIC FIXED INCOME FUNDS — 38.2% | |||||
Diversified Bond Fund Investor Class | 25,128,538 | 271,136,927 | |||
Inflation-Adjusted Bond Fund Investor Class | 6,937,281 | 83,247,371 | |||
354,384,298 | |||||
INTERNATIONAL FIXED INCOME FUNDS — 7.9% | |||||
International Bond Fund Investor Class | 5,159,320 | 73,829,863 | |||
MONEY MARKET FUNDS — 7.2% | |||||
Prime Money Market Fund Investor Class | 66,717,786 | 66,717,786 | |||
INTERNATIONAL EQUITY FUNDS — 5.9% | |||||
International Growth Fund Investor Class | 4,054,291 | 54,408,587 | |||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $781,435,406) | 927,951,891 | ||||
OTHER ASSETS AND LIABILITIES† | 3,340 | ||||
TOTAL NET ASSETS — 100.0% | $ | 927,955,231 | |||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
14
JULY 31, 2014
One Choice Portfolio: Moderate
Shares | Value | ||||
MUTUAL FUNDS(1) — 100.0% | |||||
DOMESTIC EQUITY FUNDS — 51.6% | |||||
Core Equity Plus Fund Investor Class | 3,745,530 | $ | 56,295,319 | ||
Equity Growth Fund Investor Class | 5,276,218 | 170,685,667 | |||
Growth Fund Investor Class | 4,202,562 | 142,424,837 | |||
Heritage Fund Investor Class | 4,424,319 | 113,704,991 | |||
Large Company Value Fund Investor Class | 14,106,613 | 120,611,539 | |||
Mid Cap Value Fund Investor Class | 4,641,451 | 78,440,517 | |||
Real Estate Fund Investor Class | 1,083,039 | 29,372,016 | |||
Small Company Fund Investor Class | 2,636,926 | 32,671,509 | |||
744,206,395 | |||||
DOMESTIC FIXED INCOME FUNDS — 27.3% | |||||
Diversified Bond Fund Investor Class | 23,118,180 | 249,445,157 | |||
High-Yield Fund Investor Class | 9,338,759 | 57,339,983 | |||
Inflation-Adjusted Bond Fund Investor Class | 7,232,625 | 86,791,505 | |||
393,576,645 | |||||
INTERNATIONAL EQUITY FUNDS — 13.8% | |||||
Emerging Markets Fund Investor Class | 6,221,211 | 56,986,291 | |||
International Growth Fund Investor Class | 10,609,991 | 142,386,077 | |||
199,372,368 | |||||
MONEY MARKET FUNDS — 4.3% | |||||
Prime Money Market Fund Investor Class | 62,757,810 | 62,757,810 | |||
INTERNATIONAL FIXED INCOME FUNDS — 3.0% | |||||
International Bond Fund Investor Class | 2,982,275 | 42,676,358 | |||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $1,141,563,666) | 1,442,589,576 | ||||
OTHER ASSETS AND LIABILITIES† | (94 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 1,442,589,482 | |||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
15
JULY 31, 2014
One Choice Portfolio: Aggressive
Shares | Value | ||||
MUTUAL FUNDS(1) — 100.0% | |||||
DOMESTIC EQUITY FUNDS — 61.7% | |||||
Core Equity Plus Fund Investor Class | 3,146,879 | $ | 47,297,592 | ||
Equity Growth Fund Investor Class | 3,224,038 | 104,297,632 | |||
Growth Fund Investor Class | 4,880,288 | 165,392,952 | |||
Heritage Fund Investor Class | 5,533,245 | 142,204,401 | |||
Large Company Value Fund Investor Class | 9,187,641 | 78,554,335 | |||
Mid Cap Value Fund Investor Class | 2,950,125 | 49,857,115 | |||
Real Estate Fund Investor Class | 820,373 | 22,248,520 | |||
Small Company Fund Investor Class | 2,014,784 | 24,963,171 | |||
634,815,718 | |||||
DOMESTIC FIXED INCOME FUNDS — 19.0% | |||||
Diversified Bond Fund Investor Class | 8,899,535 | 96,025,988 | |||
High-Yield Fund Investor Class | 9,552,217 | 58,650,614 | |||
Inflation-Adjusted Bond Fund Investor Class | 3,407,557 | 40,890,681 | |||
195,567,283 | |||||
INTERNATIONAL EQUITY FUNDS — 18.8% | |||||
Emerging Markets Fund Investor Class | 7,511,031 | 68,801,045 | |||
International Growth Fund Investor Class | 9,255,905 | 124,214,250 | |||
193,015,295 | |||||
MONEY MARKET FUNDS — 0.5% | |||||
Prime Money Market Fund Investor Class | 4,776,985 | 4,776,985 | |||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $779,553,244) | 1,028,175,281 | ||||
OTHER ASSETS AND LIABILITIES† | 9,934 | ||||
TOTAL NET ASSETS — 100.0% | $ | 1,028,185,215 | |||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
16
JULY 31, 2014
One Choice Portfolio: Very Aggressive
Shares | Value | ||||
MUTUAL FUNDS(1) — 100.0% | |||||
DOMESTIC EQUITY FUNDS — 74.9% | |||||
Core Equity Plus Fund Investor Class | 852,356 | $ | 12,810,914 | ||
Equity Growth Fund Investor Class | 1,077,032 | 34,841,972 | |||
Growth Fund Investor Class | 1,560,693 | 52,891,878 | |||
Heritage Fund Investor Class | 1,787,233 | 45,931,900 | |||
Large Company Value Fund Investor Class | 2,982,775 | 25,502,726 | |||
Mid Cap Value Fund Investor Class | 959,559 | 16,216,543 | |||
Real Estate Fund Investor Class | 201,912 | 5,475,859 | |||
Small Company Fund Investor Class | 543,421 | 6,732,986 | |||
200,404,778 | |||||
INTERNATIONAL EQUITY FUNDS — 22.8% | |||||
Emerging Markets Fund Investor Class | 2,203,298 | 20,182,212 | |||
International Growth Fund Investor Class | 3,047,613 | 40,898,971 | |||
61,081,183 | |||||
DOMESTIC FIXED INCOME FUNDS — 2.0% | |||||
Diversified Bond Fund Investor Class | 487,542 | 5,260,574 | |||
MONEY MARKET FUNDS — 0.3% | |||||
Prime Money Market Fund Investor Class | 790,132 | 790,132 | |||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $178,464,916) | 267,536,667 | ||||
OTHER ASSETS AND LIABILITIES† | (1 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 267,536,666 | |||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
17
Statements of Assets and Liabilities |
JULY 31, 2014 | |||||||||
One Choice Portfolio: Very Conservative | One Choice Portfolio: Conservative | One Choice Portfolio: Moderate | |||||||
Assets | |||||||||
Investment securities in affiliates, at value (cost of $315,386,706, $781,435,406 and $1,141,563,666, respectively) | $ | 355,165,100 | $ | 927,951,891 | $ | 1,442,589,576 | |||
Cash | — | 70 | — | ||||||
Receivable for investments sold | 17,377 | — | — | ||||||
Receivable for capital shares sold | 270,972 | 1,120,037 | 1,309,690 | ||||||
Distributions receivable from affiliates | 268,033 | 559,369 | 774,285 | ||||||
355,721,482 | 929,631,367 | 1,444,673,551 | |||||||
Liabilities | |||||||||
Payable for investments purchased | 268,093 | 954,418 | 1,082,492 | ||||||
Payable for capital shares redeemed | 288,349 | 721,718 | 1,001,577 | ||||||
556,442 | 1,676,136 | 2,084,069 | |||||||
Net Assets | $ | 355,165,040 | $ | 927,955,231 | $ | 1,442,589,482 | |||
Investor Class Capital Shares, $0.01 Par Value | |||||||||
Shares outstanding | 29,742,328 | 68,816,912 | 96,429,514 | ||||||
Net Asset Value Per Share | $ | 11.94 | $ | 13.48 | $ | 14.96 | |||
Net Assets Consist of: | |||||||||
Capital (par value and paid-in surplus) | $ | 317,960,800 | $ | 792,509,936 | $ | 1,183,930,507 | |||
Undistributed net investment income | 35,221 | 692,736 | 920,550 | ||||||
Accumulated net realized loss | (2,609,375 | ) | (11,763,926 | ) | (43,287,485 | ) | |||
Net unrealized appreciation | 39,778,394 | 146,516,485 | 301,025,910 | ||||||
$ | 355,165,040 | $ | 927,955,231 | $ | 1,442,589,482 | ||||
See Notes to Financial Statements.
18
JULY 31, 2014 | ||||||
One Choice Portfolio: Aggressive | One Choice Portfolio: Very Aggressive | |||||
Assets | ||||||
Investment securities in affiliates, at value (cost of $779,553,244 and $178,464,916, respectively) | $ | 1,028,175,281 | $ | 267,536,667 | ||
Receivable for investments sold | 413,805 | 465,373 | ||||
Receivable for capital shares sold | 442,678 | 77,859 | ||||
Distributions receivable from affiliates | 456,665 | 10,975 | ||||
1,029,488,429 | 268,090,874 | |||||
Liabilities | ||||||
Payable for investments purchased | 456,730 | 10,976 | ||||
Payable for capital shares redeemed | 846,484 | 543,232 | ||||
1,303,214 | 554,208 | |||||
Net Assets | $ | 1,028,185,215 | $ | 267,536,666 | ||
Investor Class Capital Shares, $0.01 Par Value | ||||||
Shares outstanding | 63,097,273 | 15,484,238 | ||||
Net Asset Value Per Share | $ | 16.30 | $ | 17.28 | ||
Net Assets Consist of: | ||||||
Capital (par value and paid-in surplus) | $ | 788,904,503 | $ | 192,684,971 | ||
Undistributed net investment income | 7,550,146 | 2,908,624 | ||||
Accumulated net realized loss | (16,891,471 | ) | (17,128,680 | ) | ||
Net unrealized appreciation | 248,622,037 | 89,071,751 | ||||
$ | 1,028,185,215 | $ | 267,536,666 | |||
See Notes to Financial Statements.
19
Statements of Operations |
YEAR ENDED JULY 31, 2014 | |||||||||
One Choice Portfolio: Very Conservative | One Choice Portfolio: Conservative | One Choice Portfolio: Moderate | |||||||
Investment Income (Loss) | |||||||||
Income from Affiliates: | |||||||||
Income distributions from underlying funds | $ | 6,036,003 | $ | 15,484,634 | $ | 24,277,400 | |||
Expenses: | |||||||||
Directors' fees and expenses | 5,940 | 15,666 | 22,167 | ||||||
Other expenses | 35 | — | — | ||||||
5,975 | 15,666 | 22,167 | |||||||
Net investment income (loss) | 6,030,028 | 15,468,968 | 24,255,233 | ||||||
Net Realized and Unrealized Gain (Loss) on Affiliates | |||||||||
Net realized gain (loss) on: | |||||||||
Sale of investments in underlying funds | 2,165,103 | 135,774 | 772,962 | ||||||
Capital gain distributions received from underlying funds | 3,523,715 | 12,668,005 | 25,492,746 | ||||||
5,688,818 | 12,803,779 | 26,265,708 | |||||||
Change in net unrealized appreciation (depreciation) on investments in underlying funds | 8,441,215 | 39,257,283 | 76,131,071 | ||||||
Net realized and unrealized gain (loss) on affiliates | 14,130,033 | 52,061,062 | 102,396,779 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 20,160,061 | $ | 67,530,030 | $ | 126,652,012 | |||
See Notes to Financial Statements.
20
YEAR ENDED JULY 31, 2014 | ||||||
One Choice Portfolio: Aggressive | One Choice Portfolio: Very Aggressive | |||||
Investment Income (Loss) | ||||||
Income from Affiliates: | ||||||
Income distributions from underlying funds | $ | 16,898,015 | $ | 3,743,600 | ||
Expenses: | ||||||
Directors' fees and expenses | 17,252 | 3,751 | ||||
Net investment income (loss) | 16,880,763 | 3,739,849 | ||||
Net Realized and Unrealized Gain (Loss) on Affiliates | ||||||
Net realized gain (loss) on: | ||||||
Sale of investments in underlying funds | 1,930,549 | 1,058,124 | ||||
Capital gain distributions received from underlying funds | 24,790,479 | 7,757,538 | ||||
26,721,028 | 8,815,662 | |||||
Change in net unrealized appreciation (depreciation) on investments in underlying funds | 63,651,077 | 20,587,527 | ||||
Net realized and unrealized gain (loss) on affiliates | 90,372,105 | 29,403,189 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 107,252,868 | $ | 33,143,038 | ||
See Notes to Financial Statements.
21
Statements of Changes in Net Assets |
YEARS ENDED JULY 31, 2014 AND JULY 31, 2013 | ||||||||||||
One Choice Portfolio: Very Conservative | One Choice Portfolio: Conservative | |||||||||||
Increase (Decrease) in Net Assets | July 31, 2014 | July 31, 2013 | July 31, 2014 | July 31, 2013 | ||||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 6,030,028 | $ | 5,786,690 | $ | 15,468,968 | $ | 12,134,400 | ||||
Net realized gain (loss) | 5,688,818 | 2,591,505 | 12,803,779 | 2,181,605 | ||||||||
Change in net unrealized appreciation (depreciation) | 8,441,215 | 4,329,003 | 39,257,283 | 43,533,461 | ||||||||
Net increase (decrease) in net assets resulting from operations | 20,160,061 | 12,707,198 | 67,530,030 | 57,849,466 | ||||||||
Distributions to Shareholders | ||||||||||||
From net investment income | (5,977,895 | ) | (5,714,296 | ) | (15,269,425 | ) | (12,019,382 | ) | ||||
From net realized gains | (2,884,902 | ) | (2,174,312 | ) | — | — | ||||||
Decrease in net assets from distributions | (8,862,797 | ) | (7,888,608 | ) | (15,269,425 | ) | (12,019,382 | ) | ||||
Capital Share Transactions | ||||||||||||
Proceeds from shares sold | 91,897,942 | 175,070,125 | 253,758,564 | 238,210,253 | ||||||||
Proceeds from reinvestment of distributions | 8,651,237 | 7,669,525 | 14,973,084 | 11,764,492 | ||||||||
Payments for shares redeemed | (108,307,943 | ) | (130,997,024 | ) | (139,163,133 | ) | (123,029,511 | ) | ||||
Net increase (decrease) in net assets from capital share transactions | (7,758,764 | ) | 51,742,626 | 129,568,515 | 126,945,234 | |||||||
Net increase (decrease) in net assets | 3,538,500 | 56,561,216 | 181,829,120 | 172,775,318 | ||||||||
Net Assets | ||||||||||||
Beginning of period | 351,626,540 | 295,065,324 | 746,126,111 | 573,350,793 | ||||||||
End of period | $ | 355,165,040 | $ | 351,626,540 | $ | 927,955,231 | $ | 746,126,111 | ||||
Undistributed net investment income | $ | 35,221 | $ | 297,843 | $ | 692,736 | $ | 493,193 | ||||
Transactions in Shares of the Funds | ||||||||||||
Sold | 7,832,402 | 15,207,290 | 19,381,020 | 19,357,865 | ||||||||
Issued in reinvestment of distributions | 742,348 | 671,694 | 1,139,728 | 967,975 | ||||||||
Redeemed | (9,257,466 | ) | (11,388,907 | ) | (10,643,243 | ) | (10,017,581 | ) | ||||
Net increase (decrease) in shares of the funds | (682,716 | ) | 4,490,077 | 9,877,505 | 10,308,259 | |||||||
See Notes to Financial Statements.
22
YEARS ENDED JULY 31, 2014 AND JULY 31, 2013 | ||||||||||||
One Choice Portfolio: Moderate | One Choice Portfolio: Aggressive | |||||||||||
Increase (Decrease) in Net Assets | July 31, 2014 | July 31, 2013 | July 31, 2014 | July 31, 2013 | ||||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 24,255,233 | $ | 17,853,732 | $ | 16,880,763 | $ | 12,628,776 | ||||
Net realized gain (loss) | 26,265,708 | 2,057,877 | 26,721,028 | 2,687,585 | ||||||||
Change in net unrealized appreciation (depreciation) | 76,131,071 | 111,824,039 | 63,651,077 | 110,506,997 | ||||||||
Net increase (decrease) in net assets resulting from operations | 126,652,012 | 131,735,648 | 107,252,868 | 125,823,358 | ||||||||
Distributions to Shareholders | ||||||||||||
From net investment income | (24,018,441 | ) | (17,736,660 | ) | (14,880,948 | ) | (11,004,640 | ) | ||||
Capital Share Transactions | ||||||||||||
Proceeds from shares sold | 371,485,435 | 288,203,911 | 215,763,985 | 286,287,049 | ||||||||
Proceeds from reinvestment of distributions | 23,668,750 | 17,397,464 | 14,764,862 | 10,916,991 | ||||||||
Payments for shares redeemed | (188,766,887 | ) | (155,755,184 | ) | (147,622,947 | ) | (125,315,608 | ) | ||||
Net increase (decrease) in net assets from capital share transactions | 206,387,298 | 149,846,191 | 82,905,900 | 171,888,432 | ||||||||
Net increase (decrease) in net assets | 309,020,869 | 263,845,179 | 175,277,820 | 286,707,150 | ||||||||
Net Assets | ||||||||||||
Beginning of period | 1,133,568,613 | 869,723,434 | 852,907,395 | 566,200,245 | ||||||||
End of period | $ | 1,442,589,482 | $ | 1,133,568,613 | $ | 1,028,185,215 | $ | 852,907,395 | ||||
Undistributed net investment income | $ | 920,550 | $ | 683,758 | $ | 7,550,146 | $ | 5,550,331 | ||||
Transactions in Shares of the Funds | ||||||||||||
Sold | 25,608,183 | 21,914,726 | 13,749,731 | 21,472,247 | ||||||||
Issued in reinvestment of distributions | 1,624,838 | 1,347,690 | 941,037 | 833,995 | ||||||||
Redeemed | (13,026,618 | ) | (11,939,485 | ) | (9,414,416 | ) | (9,130,607 | ) | ||||
Net increase (decrease) in shares of the funds | 14,206,403 | 11,322,931 | 5,276,352 | 13,175,635 | ||||||||
See Notes to Financial Statements.
23
YEARS ENDED JULY 31, 2014 AND JULY 31, 2013 | ||||||
One Choice Portfolio: Very Aggressive | ||||||
Increase (Decrease) in Net Assets | July 31, 2014 | July 31, 2013 | ||||
Operations | ||||||
Net investment income (loss) | $ | 3,739,849 | $ | 2,737,383 | ||
Net realized gain (loss) | 8,815,662 | 1,559,728 | ||||
Change in net unrealized appreciation (depreciation) | 20,587,527 | 38,409,586 | ||||
Net increase (decrease) in net assets resulting from operations | 33,143,038 | 42,706,697 | ||||
Distributions to Shareholders | ||||||
From net investment income | (2,298,997 | ) | (2,001,337 | ) | ||
Capital Share Transactions | ||||||
Proceeds from shares sold | 44,771,752 | 55,220,412 | ||||
Proceeds from reinvestment of distributions | 2,279,082 | 1,978,556 | ||||
Payments for shares redeemed | (44,987,543 | ) | (56,467,670 | ) | ||
Net increase (decrease) in net assets from capital share transactions | 2,063,291 | 731,298 | ||||
Net increase (decrease) in net assets | 32,907,332 | 41,436,658 | ||||
Net Assets | ||||||
Beginning of period | 234,629,334 | 193,192,676 | ||||
End of period | $ | 267,536,666 | $ | 234,629,334 | ||
Undistributed net investment income | $ | 2,908,624 | $ | 1,467,772 | ||
Transactions in Shares of the Funds | ||||||
Sold | 2,726,163 | 3,971,089 | ||||
Issued in reinvestment of distributions | 136,965 | 150,232 | ||||
Redeemed | (2,716,235 | ) | (4,086,886 | ) | ||
Net increase (decrease) in shares of the funds | 146,893 | 34,435 | ||||
See Notes to Financial Statements.
24
Notes to Financial Statements |
JULY 31, 2014
1. Organization
American Century Asset Allocation Portfolios, 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. The corporation is authorized to issue 3,000,000,000 shares. One Choice Portfolio: Very Conservative, One Choice Portfolio: Conservative, One Choice Portfolio: Moderate, One Choice Portfolio: Aggressive and One Choice Portfolio: Very Aggressive (collectively, the funds) are five funds in a series issued by the corporation. The funds operate as “funds of funds,” meaning substantially all of the funds’ assets will be invested in other American Century Investments mutual funds (the underlying funds). Each fund’s assets are allocated among underlying funds that represent major asset classes, including equity securities (stocks), fixed-income securities (bonds) and cash-equivalent instruments (money markets). The funds are diversified as defined under the 1940 Act. The funds will assume the risks associated with their underlying funds. Additional information and attributes of each underlying fund are available at americancentury.com. Each fund's investment objective is to seek the highest total return consistent with its asset mix.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the funds in preparation of their financial statements. The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which 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 funds determine the fair value of their investments and compute their net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the funds' investment valuation process and to provide methodologies for the oversight of the funds' pricing function. Investments in the underlying funds are valued at their reported net asset value.
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 — Income and capital gain distributions, if any, from the underlying funds are recorded as of the ex-dividend date. Long-term capital gain distributions, if any, from the underlying funds are a component of net realized gain (loss).
Expenses — The expenses included in the accompanying financial statements reflect the expenses of each fund and do not include any expenses associated with the underlying funds.
Income Tax Status — It is each 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 funds file U.S. federal, state, local and non-U.S. tax returns as applicable. The funds' tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid quarterly for One Choice Portfolio: Very Conservative, One Choice Portfolio: Conservative and One Choice Portfolio: Moderate. Distributions from net investment income, if any, are generally declared and paid
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annually for One Choice Portfolio: Aggressive and One Choice Portfolio: Very Aggressive. Distributions from net realized gains, if any, are generally declared and paid annually for all funds.
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 funds. In addition, in the normal course of business, the funds enter into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, American Century Investment Management, Inc. (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. ACIM serves as the investment advisor for the underlying funds.
Administrative Fees — The corporation’s investment advisor, ACIM, does not receive an administrative fee for services provided to the funds.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the funds. The directors receive detailed information about the funds and their investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. Fees and expenses incurred in conjunction with the directors during the year ended July 31, 2014 are detailed in the Statements of Operations. The funds' officers do not receive compensation from the funds.
Acquired Fund Fees and Expenses — Each fund will indirectly realize its pro rata share of the fees and expenses of the underlying funds in which it invests. These fees and expenses are already reflected in the valuation of the underlying funds.
4. Investment Transactions
Investment transactions for the year ended July 31, 2014 were as follows:
One Choice Portfolio: Very Conservative | One Choice Portfolio: Conservative | One Choice Portfolio: Moderate | One Choice Portfolio: Aggressive | One Choice Portfolio: Very Aggressive | |||||||||||
Purchases | $ | 40,239,465 | $ | 160,180,697 | $ | 265,920,232 | $ | 156,610,297 | $ | 31,419,289 | |||||
Sales | $ | 47,307,196 | $ | 17,747,928 | $ | 33,803,124 | $ | 46,923,883 | $ | 20,157,606 | |||||
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5. Affiliated Fund Transactions
A summary of transactions for each underlying fund for the year ended July 31, 2014 follows:
Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice Portfolio: Very Conservative | ||||||||||||||||||
Diversified Bond Fund | $ | 112,481,950 | $ | 9,444,969 | $ | 12,505,777 | $ | (594,069 | ) | $ | 3,549,722 | $ | 110,765,956 | |||||
Inflation-Adjusted Bond Fund | 35,259,848 | 3,296,161 | 2,600,662 | (259,363 | ) | 1,572,739 | 35,625,413 | |||||||||||
Short Duration Fund | 24,547,612 | 1,635,396 | 908,005 | (9,835 | ) | 384,483 | 25,022,560 | |||||||||||
Short Duration Inflation Protection Bond Fund | 28,115,083 | 1,399,532 | 1,029,838 | (27,634 | ) | 131,080 | 28,559,396 | |||||||||||
Core Equity Plus Fund | 3,587,742 | 295,909 | 595,618 | 113,383 | 254,449 | 3,521,896 | ||||||||||||
Equity Growth Fund | 14,168,929 | 1,862,381 | 3,010,939 | 444,022 | 771,365 | 13,998,043 | ||||||||||||
Growth Fund | 12,261,388 | 4,818,716 | 2,367,186 | 214,920 | 730,299 | 15,763,310 | ||||||||||||
Heritage Fund(3) | 5,385,166 | 4,131,337 | 879,713 | 139,102 | 331,993 | 8,770,710 | ||||||||||||
Large Company Value Fund | 24,591,504 | 3,047,384 | 4,958,791 | 1,061,833 | 390,415 | 24,517,470 | ||||||||||||
Mid Cap Value Fund | 17,516,220 | 2,493,043 | 3,448,130 | 437,552 | 1,213,315 | 17,593,261 | ||||||||||||
Real Estate Fund | 6,870,368 | 934,479 | 1,399,715 | 117,043 | 132,349 | 7,047,738 | ||||||||||||
Small Company Fund | 3,626,545 | 3,981,136 | 4,289,818 | 669,506 | 16,567 | 3,461,240 | ||||||||||||
International Bond Fund | 35,153,369 | 1,921,954 | 3,119,297 | (141,357 | ) | 78,291 | 35,508,854 | |||||||||||
Prime Money Market Fund | 28,060,789 | 977,068 | 4,028,604 | — | 2,651 | 25,009,253 | ||||||||||||
$ | 351,626,513 | $ | 40,239,465 | $ | 45,142,093 | $ | 2,165,103 | $ | 9,559,718 | $ | 355,165,100 | |||||||
(1) | Underlying fund investments represent Investor Class. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | The fund owned Investor Class shares of VistaSM Fund at the beginning of the period. Pursuant to an agreement and plan of reorganization, the net assets of Vista Fund were transferred to Heritage Fund in exchange for shares of Heritage Fund as of the close of business on December 6, 2013. The fund owned Investor Class shares of Heritage Fund after the reorganization and the transactions presented for the period include activity from both underlying funds. |
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Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice Portfolio: Conservative | ||||||||||||||||||
Core Equity Plus Fund | $ | 15,106,260 | $ | 1,412,813 | — | — | $ | 1,198,596 | $ | 18,144,640 | ||||||||
Equity Growth Fund | 52,926,215 | 6,319,071 | $ | 1,406,731 | $ | 56,459 | 3,220,014 | 63,717,139 | ||||||||||
Growth Fund | 42,587,868 | 14,419,244 | 676,260 | 23,120 | 2,857,363 | 61,042,304 | ||||||||||||
Heritage Fund(3) | 30,482,498 | 13,278,232 | 114,971 | 24,146 | 2,091,463 | 45,074,146 | ||||||||||||
Large Company Value Fund | 75,229,066 | 8,077,529 | 1,707,964 | 48,354 | 1,337,724 | 91,624,838 | ||||||||||||
Mid Cap Value Fund | 50,831,500 | 6,313,555 | 162,837 | (921 | ) | 3,889,738 | 61,779,238 | |||||||||||
Real Estate Fund | 14,146,953 | 2,859,478 | — | — | 315,610 | 18,960,665 | ||||||||||||
Small Company Fund | 11,882,650 | 7,901,078 | 3,233,437 | 461,202 | 51,858 | 18,268,387 | ||||||||||||
Diversified Bond Fund | 223,223,983 | 54,892,964 | 9,493,011 | (530,907 | ) | 7,949,459 | 271,136,927 | |||||||||||
Inflation-Adjusted Bond Fund | 66,696,116 | 17,605,814 | 2,560 | (280 | ) | 3,377,562 | 83,247,371 | |||||||||||
International Bond Fund | 58,838,025 | 12,325,759 | — | — | 147,432 | 73,829,863 | ||||||||||||
Prime Money Market Fund | 58,920,014 | 7,820,072 | 22,300 | — | 6,450 | 66,717,786 | ||||||||||||
International Growth Fund | 45,254,917 | 6,955,088 | 792,083 | 54,601 | 1,709,370 | 54,408,587 | ||||||||||||
$ | 746,126,065 | $ | 160,180,697 | $ | 17,612,154 | $ | 135,774 | $ | 28,152,639 | $ | 927,951,891 | |||||||
(1) | Underlying fund investments represent Investor Class. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | The fund owned Investor Class shares of VistaSM Fund at the beginning of the period. Pursuant to an agreement and plan of reorganization, the net assets of Vista Fund were transferred to Heritage Fund in exchange for shares of Heritage Fund as of the close of business on December 6, 2013. The fund owned Investor Class shares of Heritage Fund after the reorganization and the transactions presented for the period include activity from both underlying funds. |
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Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice Portfolio: Moderate | ||||||||||||||||||
Core Equity Plus Fund | $ | 45,780,664 | $ | 5,558,133 | — | — | $ | 3,633,156 | $ | 56,295,319 | ||||||||
Equity Growth Fund | 137,690,638 | 18,645,577 | $ | 973,854 | $ | 64,401 | 8,400,908 | 170,685,667 | ||||||||||
Growth Fund | 100,860,171 | 30,325,180 | — | — | 6,762,067 | 142,424,837 | ||||||||||||
Heritage Fund(3) | 80,784,413 | 29,371,605 | 461,176 | 100,709 | 5,529,567 | 113,704,991 | ||||||||||||
Large Company Value Fund | 97,813,955 | 9,892,313 | — | — | 1,738,232 | 120,611,539 | ||||||||||||
Mid Cap Value Fund | 62,916,981 | 9,593,529 | — | — | 4,783,790 | 78,440,517 | ||||||||||||
Real Estate Fund | 20,976,956 | 5,303,879 | — | — | 490,107 | 29,372,016 | ||||||||||||
Small Company Fund | 24,282,674 | 11,676,959 | 5,937,931 | 1,352,378 | 94,498 | 32,671,509 | ||||||||||||
Diversified Bond Fund | 208,010,505 | 51,699,654 | 12,847,792 | (644,260 | ) | 7,571,035 | 249,445,157 | |||||||||||
High-Yield Fund | 43,500,168 | 22,850,240 | 8,337,888 | (146,593 | ) | 2,602,335 | 57,339,983 | |||||||||||
Inflation-Adjusted Bond Fund | 66,226,587 | 21,554,844 | — | — | 3,478,638 | 86,791,505 | ||||||||||||
Emerging Markets Fund | 44,345,838 | 7,256,739 | 671,931 | (28,058 | ) | 190,146 | 56,986,291 | |||||||||||
International Growth Fund | 113,454,937 | 22,780,983 | 1,363,886 | 74,385 | 4,404,638 | 142,386,077 | ||||||||||||
Prime Money Market Fund | 54,424,215 | 10,769,299 | 2,435,704 | — | 6,175 | 62,757,810 | ||||||||||||
International Bond Fund | 32,499,733 | 8,641,298 | — | — | 84,854 | 42,676,358 | ||||||||||||
$ | 1,133,568,435 | $ | 265,920,232 | $ | 33,030,162 | $ | 772,962 | $ | 49,770,146 | $ | 1,442,589,576 | |||||||
(1) | Underlying fund investments represent Investor Class. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | The fund owned Investor Class shares of VistaSM Fund at the beginning of the period. Pursuant to an agreement and plan of reorganization, the net assets of Vista Fund were transferred to Heritage Fund in exchange for shares of Heritage Fund as of the close of business on December 6, 2013. The fund owned Investor Class shares of Heritage Fund after the reorganization and the transactions presented for the period include activity from both underlying funds. |
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Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice Portfolio: Aggressive | ||||||||||||||||||
Core Equity Plus Fund | $ | 39,370,144 | $ | 4,736,083 | $ | 834,502 | $ | 243,772 | $ | 3,044,567 | $ | 47,297,592 | ||||||
Equity Growth Fund | 86,510,946 | 9,824,748 | 1,481,670 | 94,409 | 5,183,787 | 104,297,632 | ||||||||||||
Growth Fund | 131,970,953 | 22,327,356 | 2,681,358 | 154,785 | 8,656,069 | 165,392,952 | ||||||||||||
Heritage Fund(3) | 117,995,648 | 22,910,206 | 4,071,166 | 715,756 | 7,881,565 | 142,204,401 | ||||||||||||
Large Company Value Fund | 64,760,713 | 6,507,813 | 1,145,046 | 24,125 | 1,141,646 | 78,554,335 | ||||||||||||
Mid Cap Value Fund | 41,257,891 | 4,822,726 | 52,559 | 20 | 3,086,274 | 49,857,115 | ||||||||||||
Real Estate Fund | 15,633,180 | 4,551,527 | 254,516 | (3,988 | ) | 360,125 | 22,248,520 | |||||||||||
Small Company Fund | 20,861,399 | 8,995,077 | 6,889,210 | 1,109,928 | 74,421 | 24,963,171 | ||||||||||||
Diversified Bond Fund | 85,268,331 | 20,315,057 | 10,877,652 | (514,749 | ) | 3,099,220 | 96,025,988 | |||||||||||
High-Yield Fund | 48,265,254 | 16,272,622 | 5,304,184 | (99,654 | ) | 3,139,771 | 58,650,614 | |||||||||||
Inflation-Adjusted Bond Fund | 32,213,564 | 9,131,612 | — | — | 1,707,999 | 40,890,681 | ||||||||||||
Emerging Markets Fund | 54,260,572 | 10,185,919 | 2,867,345 | 9,017 | 234,594 | 68,801,045 | ||||||||||||
International Growth Fund | 106,073,537 | 14,735,843 | 3,552,294 | 197,128 | 4,077,631 | 124,214,250 | ||||||||||||
Prime Money Market Fund | 8,465,109 | 1,293,708 | 4,981,832 | — | 825 | 4,776,985 | ||||||||||||
$ | 852,907,241 | $ | 156,610,297 | $ | 44,993,334 | $ | 1,930,549 | $ | 41,688,494 | $ | 1,028,175,281 | |||||||
(1) | Underlying fund investments represent Investor Class. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | The fund owned Investor Class shares of VistaSM Fund at the beginning of the period. Pursuant to an agreement and plan of reorganization, the net assets of Vista Fund were transferred to Heritage Fund in exchange for shares of Heritage Fund as of the close of business on December 6, 2013. The fund owned Investor Class shares of Heritage Fund after the reorganization and the transactions presented for the period include activity from both underlying funds. |
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Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice Portfolio: Very Aggressive | ||||||||||||||||||
Core Equity Plus Fund | $ | 11,213,702 | $ | 1,098,165 | $ | 631,705 | $ | 84,179 | $ | 879,564 | $ | 12,810,914 | ||||||
Equity Growth Fund | 30,570,197 | 2,999,867 | 1,964,000 | 139,209 | 1,845,549 | 34,841,972 | ||||||||||||
Growth Fund | 44,023,984 | 5,820,884 | 1,484,374 | 8,024 | 2,882,811 | 52,891,878 | ||||||||||||
Heritage Fund(3) | 38,887,708 | 6,740,946 | 1,544,209 | 116,023 | 2,679,303 | 45,931,900 | ||||||||||||
Large Company Value Fund | 22,313,208 | 1,891,330 | 1,499,811 | 137,173 | 392,329 | 25,502,726 | ||||||||||||
Mid Cap Value Fund | 14,038,094 | 1,813,469 | 889,392 | 50,896 | 1,072,309 | 16,216,543 | ||||||||||||
Real Estate Fund | 4,527,816 | 1,036,581 | 661,961 | 35,978 | 99,148 | 5,475,859 | ||||||||||||
Small Company Fund | 5,928,148 | 2,568,080 | 2,260,424 | 448,103 | 21,607 | 6,732,986 | ||||||||||||
Emerging Markets Fund | 17,458,136 | 2,723,004 | 2,224,825 | 60,407 | 72,353 | 20,182,212 | ||||||||||||
International Growth Fund | 36,311,037 | 3,743,284 | 1,550,854 | 53,022 | 1,385,904 | 40,898,971 | ||||||||||||
Diversified Bond Fund | 7,034,367 | 697,351 | 2,568,795 | (74,890 | ) | 170,049 | 5,260,574 | |||||||||||
Prime Money Market Fund | 2,322,936 | 286,328 | 1,819,132 | — | 212 | 790,132 | ||||||||||||
$ | 234,629,333 | $ | 31,419,289 | $ | 19,099,482 | $ | 1,058,124 | $ | 11,501,138 | $ | 267,536,667 | |||||||
(1) | Underlying fund investments represent Investor Class. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | The fund owned Investor Class shares of VistaSM Fund at the beginning of the period. Pursuant to an agreement and plan of reorganization, the net assets of Vista Fund were transferred to Heritage Fund in exchange for shares of Heritage Fund as of the close of business on December 6, 2013. The fund owned Investor Class shares of Heritage Fund after the reorganization and the transactions presented for the period include activity from both underlying funds. |
6. Investments in Underlying Funds
The funds do not invest in the underlying funds for the purpose of exercising management or control; however, investments by the funds within their investment strategies may represent a significant portion of the underlying funds’ net assets. As of July 31, 2014, One Choice Portfolio: Moderate and One Choice Portfolio: Aggressive owned 37% and 31%, respectively, of the shares of Core Equity Plus Fund. As of July 31, 2014, the funds, in aggregate, owned 90% of the total shares of Core Equity Plus Fund.
7. Fair Value Measurements
The funds’ investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the funds. 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.
As of period end, the funds’ investment securities were classified as Level 1. The Schedules of Investments provide additional information on the funds’ portfolio holdings.
8. Federal Tax Information
The tax character of distributions paid during the years ended July 31, 2014 and July 31, 2013 were as follows:
2014 | 2013 | |||||||||||
Distributions Paid From: | Distributions Paid From: | |||||||||||
Ordinary income | Long-term capital gains | Ordinary income | Long-term capital gains | |||||||||
One Choice Portfolio: Very Conservative | $ | 6,426,657 | $ | 2,436,140 | $ | 5,911,434 | $ | 1,977,174 | ||||
One Choice Portfolio: Conservative | $ | 15,269,425 | — | $ | 12,019,382 | — | ||||||
One Choice Portfolio: Moderate | $ | 24,018,441 | — | $ | 17,736,660 | — | ||||||
One Choice Portfolio: Aggressive | $ | 14,880,948 | — | $ | 11,004,640 | — | ||||||
One Choice Portfolio: Very Aggressive | $ | 2,298,997 | — | $ | 2,001,337 | — | ||||||
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 July 31, 2014, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
One Choice Portfolio: Very Conservative | One Choice Portfolio: Conservative | One Choice Portfolio: Moderate | |||||||
Federal tax cost of investments | $ | 322,985,149 | $ | 801,539,332 | $ | 1,186,622,843 | |||
Gross tax appreciation of investments | $ | 33,322,372 | $ | 126,412,559 | $ | 255,966,733 | |||
Gross tax depreciation of investments | (1,142,421 | ) | — | — | |||||
Net tax appreciation (depreciation) of investments | $ | 32,179,951 | $ | 126,412,559 | $ | 255,966,733 | |||
Undistributed ordinary income | $ | 357,718 | $ | 692,736 | $ | 920,550 | |||
Accumulated long-term gains | $ | 4,666,571 | $ | 8,340,000 | $ | 1,771,692 | |||
One Choice Portfolio: Aggressive | One Choice Portfolio: Very Aggressive | |||||
Federal tax cost of investments | $ | 810,049,590 | $ | 192,545,334 | ||
Gross tax appreciation of investments | $ | 218,125,691 | $ | 74,991,333 | ||
Gross tax depreciation of investments | — | — | ||||
Net tax appreciation (depreciation) of investments | $ | 218,125,691 | $ | 74,991,333 | ||
Undistributed ordinary income | $ | 7,550,146 | $ | 2,908,624 | ||
Accumulated long-term gains | $ | 13,604,875 | — | |||
Accumulated short-term capital losses | — | $ | (3,048,262 | ) | ||
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
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The accumulated capital losses represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations. Capital loss carryovers expire as follows:
2018 | 2019 | |
One Choice Portfolio: Very Conservative | — | — |
One Choice Portfolio: Conservative | — | — |
One Choice Portfolio: Moderate | — | — |
One Choice Portfolio: Aggressive | — | — |
One Choice Portfolio: Very Aggressive | $(814,486) | $(2,233,776) |
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
One Choice Portfolio: Very Conservative — Investor Class | |||||||||||||||
2014 | $11.56 | 0.20 | 0.48 | 0.68 | (0.20) | (0.10) | (0.30) | $11.94 | 5.99% | 0.00%(4) | 1.74% | 12% | $355,165 | ||
2013 | $11.38 | 0.20 | 0.26 | 0.46 | (0.20) | (0.08) | (0.28) | $11.56 | 4.04% | 0.00%(4) | 1.75% | 28% | $351,627 | ||
2012 | $11.02 | 0.24 | 0.37 | 0.61 | (0.24) | (0.01) | (0.25) | $11.38 | 5.66% | 0.00%(4) | 2.14% | 13% | $295,065 | ||
2011 | $10.41 | 0.23 | 0.61 | 0.84 | (0.23) | — | (0.23) | $11.02 | 8.16% | 0.00%(4) | 2.15% | 17% | $206,540 | ||
2010 | $9.88 | 0.23 | 0.53 | 0.76 | (0.23) | — | (0.23) | $10.41 | 7.73% | 0.01% | 2.25% | 15% | $158,523 | ||
One Choice Portfolio: Conservative — Investor Class | |||||||||||||||
2014 | $12.66 | 0.24 | 0.82 | 1.06 | (0.24) | — | (0.24) | $13.48 | 8.43% | 0.00%(4) | 1.85% | 2% | $927,955 | ||
2013 | $11.79 | 0.23 | 0.87 | 1.10 | (0.23) | — | (0.23) | $12.66 | 9.42% | 0.00%(4) | 1.86% | 3% | $746,126 | ||
2012 | $11.41 | 0.25 | 0.39 | 0.64 | (0.26) | — | (0.26) | $11.79 | 5.71% | 0.00%(4) | 2.24% | 12% | $573,351 | ||
2011 | $10.42 | 0.24 | 0.99 | 1.23 | (0.24) | — | (0.24) | $11.41 | 11.90% | 0.00%(4) | 2.16% | 10% | $466,326 | ||
2010 | $9.69 | 0.23 | 0.73 | 0.96 | (0.23) | — | (0.23) | $10.42 | 9.99% | 0.00%(4) | 2.29% | 7% | $326,548 | ||
One Choice Portfolio: Moderate — Investor Class | |||||||||||||||
2014 | $13.79 | 0.27 | 1.17 | 1.44 | (0.27) | — | (0.27) | $14.96 | 10.51% | 0.00%(4) | 1.88% | 3% | $1,442,589 | ||
2013 | $12.27 | 0.24 | 1.52 | 1.76 | (0.24) | — | (0.24) | $13.79 | 14.48% | 0.00%(4) | 1.81% | 3% | $1,133,569 | ||
2012 | $12.01 | 0.23 | 0.26 | 0.49 | (0.23) | — | (0.23) | $12.27 | 4.21% | 0.00%(4) | 1.95% | 16% | $869,723 | ||
2011 | $10.60 | 0.21 | 1.41 | 1.62 | (0.21) | — | (0.21) | $12.01 | 15.35% | 0.00%(4) | 1.80% | 11% | $803,485 | ||
2010 | $9.65 | 0.20 | 0.94 | 1.14 | (0.19) | — | (0.19) | $10.60 | 11.90% | 0.01% | 1.89% | 9% | $634,333 | ||
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For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
One Choice Portfolio: Aggressive — Investor Class | |||||||||||||
2014 | $14.75 | 0.28 | 1.52 | 1.80 | (0.25) | $16.30 | 12.26% | 0.00%(4) | 1.77% | 5% | $1,028,185 | ||
2013 | $12.68 | 0.23 | 2.05 | 2.28 | (0.21) | $14.75 | 18.15% | 0.00%(4) | 1.67% | 5% | $852,907 | ||
2012 | $12.58 | 0.20 | 0.10 | 0.30 | (0.20) | $12.68 | 2.50% | 0.00%(4) | 1.65% | 14% | $566,200 | ||
2011 | $10.75 | 0.18 | 1.82 | 2.00 | (0.17) | $12.58 | 18.67% | 0.00%(4) | 1.48% | 11% | $523,231 | ||
2010 | $9.62 | 0.17 | 1.11 | 1.28 | (0.15) | $10.75 | 13.33% | 0.01% | 1.58% | 8% | $421,049 | ||
One Choice Portfolio: Very Aggressive — Investor Class | |||||||||||||
2014 | $15.30 | 0.24 | 1.89 | 2.13 | (0.15) | $17.28 | 13.94% | 0.00%(4) | 1.45% | 8% | $267,537 | ||
2013 | $12.62 | 0.18 | 2.63 | 2.81 | (0.13) | $15.30 | 22.42% | 0.00%(4) | 1.29% | 16% | $234,629 | ||
2012 | $12.62 | 0.12 | —(5) | 0.12 | (0.12) | $12.62 | 1.05% | 0.00%(4) | 1.02% | 13% | $193,193 | ||
2011 | $10.52 | 0.11 | 2.09 | 2.20 | (0.10) | $12.62 | 20.97% | 0.00%(4) | 0.87% | 18% | $203,114 | ||
2010 | $9.36 | 0.10 | 1.15 | 1.25 | (0.09) | $10.52 | 13.39% | 0.01% | 0.93% | 9% | $163,785 | ||
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(3) | Ratio of operating expenses to average net assets does not include any fees and expenses of the underlying funds. |
(4) | Ratio was less than 0.005%. |
(5) | Per-share amount was less than $0.005. |
See Notes to Financial Statements.
35
Report of Independent Registered Public Accounting Firm |
To the Board of Directors and Shareholders of
American Century Asset Allocation Portfolios, Inc.:
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of One Choice Portfolio: Very Conservative, One Choice Portfolio: Conservative, One Choice Portfolio: Moderate, One Choice Portfolio: Aggressive, and One Choice Portfolio: Very Aggressive, five of the portfolios constituting American Century Asset Allocation Portfolios, Inc. (the “Funds”), as of July 31, 2014, and the related statements 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, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2014, by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective Funds as of July 31, 2014, the results of their operations for the year then ended, the changes in their 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.
Deloitte & Touche LLP
Kansas City, Missouri
September 17, 2014
36
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 by December 31 of the year in which they reach their 75th birthday.
Mr. 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). Mr. Fink is treated as an “interested person” because of his recent employment with ACC and American Century Services, LLC (ACS). 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 ACS, and 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 Mr. Thomas, 15) 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 | |||||
Thomas A. Brown (1940) | Director | Since 1980 | Managing Member, Associated Investments, LLC (real estate investment company); Brown Cascade Properties, LLC (real estate investment company) (2001 to 2009) | 73 | None |
Andrea C. Hall (1945) | Director | Since 1997 | Retired | 73 | None |
Jan M. Lewis (1957) | Director | Since 2011 | Retired; President and Chief Executive Officer, Catholic Charities of Northeast Kansas (human services organization) (2006 to 2013) | 73 | None |
James A. Olson (1942) | Director and Chairman of the Board | Since 2007 (Chairman since 2014) | Member, Plaza Belmont LLC (private equity fund manager) | 73 | Saia, Inc. (2002 to 2012) and EPR Properties (2003 to 2013) |
M. Jeannine Strandjord (1945) | Director | Since 1994 | Retired | 73 | Euronet Worldwide Inc.; Charming Shoppes, Inc. (2006 to 2010); and DST Systems Inc. (1996 to 2012) |
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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 | |||||
John R. Whitten (1946) | Director | Since 2008 | Retired | 73 | Rudolph Technologies, Inc. |
Stephen E. Yates (1948) | Director | Since 2012 | Retired; Executive Vice President, Technology & Operations, KeyCorp. (computer services) (2004 to 2010) | 73 | Applied Industrial Technologies, Inc. (2001 to 2010) |
Interested Directors | |||||
Barry Fink (1955) | Director | Since 2012 | Retired; Executive Vice President, ACC (September 2007 to February 2013); President, ACS (October 2007 to February 2013); Chief Operating Officer, ACC (September 2007 to November 2012) | 73 | None |
Jonathan S. Thomas (1963) | Director and President | Since 2007 | President and Chief Executive Officer, ACC (March 2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries | 118 | BioMed Valley Discoveries, Inc. |
The Statement of Additional Information has additional information about the funds’ 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 15 investment companies in the American Century family of funds, unless otherwise noted. 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 |
Jonathan S. Thomas (1963) | Director and President since 2007 | President and Chief Executive Officer, ACC (March 2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries |
Amy D. Shelton (1964) | Chief Compliance Officer since 2014 | Chief Compliance Officer, American Century funds, (March 2014 to present); Chief Compliance Officer, ACIM (February 2014 to present); Chief Compliance Officer, ACIS (October 2009 to present); Vice President, Client Interactions and Marketing, ACIS (February 2013 to January 2014); Director, Client Interactions and Marketing, ACIS (June 2007 to January 2013). Also serves as Vice President, ACIS |
Charles A. Etherington (1957) | General Counsel since 2007 and Senior Vice President since 2006 | Attorney, ACC (February 1994 to present); Vice President, ACC (November 2005 to present); General Counsel, ACC (March 2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS |
C. Jean Wade (1964) | Vice President, Treasurer and Chief Financial Officer since 2012 | Vice President, ACS (February 2000 to present) |
Robert J. Leach (1966) | Vice President since 2006 and Assistant Treasurer since 2012 | Vice President, ACS (February 2000 to present) |
David H. Reinmiller (1963) | Vice President since 2000 | Attorney, ACC (January 1994 to present); Associate General Counsel, ACC (January 2001 to present). Also serves as Vice President, ACIM and ACS |
Ward D. Stauffer (1960) | Secretary since 2005 | Attorney, ACC (June 2003 to present) |
39
Approval of Management Agreement |
At a meeting held on June 18, 2014, the Funds’ Board of Directors unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for each of the Funds. Under Section 15(c) of the Investment Company Act, contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of the funds’ directors (the “Directors”), including a majority of the independent Directors, each year.
Prior to its consideration of the renewal of the management agreement, the Board requested and reviewed extensive data and information compiled by the Advisor and certain independent providers of evaluation data concerning the Funds and the services provided to the Funds by the Advisor. This review was in addition to the oversight and evaluation undertaken by the Board and its committees on a continuous basis and the information received was supplemental to the extensive information that the Board and its committees receive and consider throughout the year.
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 included, but was not limited to, the following:
• | the nature, extent, and quality of investment management, shareholder services, and other services provided by the Advisor to each Fund; |
• | the wide range of other programs and services the Advisor provides to each Fund and its shareholders on a routine and non-routine basis; |
• | each Fund’s investment performance compared to appropriate benchmarks and/or a peer group of other mutual funds with similar investment objectives and strategies; |
• | the cost of owning each Fund compared to the cost of owning similar funds; |
• | the Advisor’s compliance policies, procedures, and regulatory experience; |
• | financial data showing the cost of services provided to the Funds, the profitability of each Fund to the Advisor, and the overall profitability of the Advisor; |
• | possible economies of scale associated with the Advisor’s management of the Funds and other accounts under its management; |
• | the services provided and charges to other investment management clients of the Advisor |
• | acquired fund fees and expenses; and |
• | any collateral benefits derived by the Advisor from the management of the Funds. |
In keeping with its practice, the Board held two in-person meetings and one telephonic meeting to review and discuss the information provided. The independent Directors also 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, and evaluated such information for each 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. In deciding to renew the management agreement, the Board based its decision on a number of factors, including the following:
40
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 each Fund. The Board noted that under the management agreement, the Advisor provides or arranges at its own expense a wide variety of services including:
• | constructing and designing each Fund |
• | portfolio research and security selection |
• | initial capitalization/funding |
• | securities trading |
• | Fund administration |
• | custody of Fund assets |
• | daily valuation of each Fund’s portfolio |
• | 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 Rule 12b-1 plans) |
The Board noted that many of these services have expanded over time both in terms of 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 Funds is quite complex and allows fund shareholders access to professional money management, instant diversification of their investments within an asset class, 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 each Fund in accordance with its investment objectives and approved 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 (portfolio managers, analysts, research assistants, and securities traders) 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, regularly reviews investment performance information for each Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Directors also review detailed performance information during the management agreement approval process. If performance concerns are identified with respect to a fund, the Fund receives special reviews until performance improves, during which the Board discusses with the Advisor the reasons for such results (e.g., market conditions, security selection) and any efforts being undertaken to improve performance. The performance for One Choice Portfolio: Very Conservative, One Choice Portfolio: Conservative, and One Choice Portfolio: Moderate was above each Fund’s respective benchmark for the one-, three-, and five-year periods reviewed by the Board. The performance for One Choice Portfolio: Aggressive and One Choice Portfolio: Very Aggressive was above each Fund’s respective benchmark for the one- and three-year periods and below each Fund’s respective benchmark for the five-year period reviewed by the Board. Taking all these factors into consideration, the Board found the investment management services provided to each Fund by the Advisor to be satisfactory and consistent with the management agreement.
Shareholder and Other Services. Under the management agreement, the Advisor provides the Funds with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through various committees of the Board, 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 (as measured by external as well
41
as internal sources), technology support, new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities. Certain aspects of shareholder and transfer agency service level efficiency and the quality of securities trading activities are measured by independent third party providers and are presented in comparison to other fund groups not managed by the Advisor. The Board found the services provided by the Advisor to each 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 Funds, its profitability in managing each Fund (pre- and post-distribution), its overall profitability, and its financial condition. The Directors have reviewed with the Advisor the methodology used to prepare this financial information. The financial information regarding the Advisor is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services to the Funds, and the reasonableness of the current management agreement. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Funds.
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 each 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 appropriately sharing economies of scale through its competitive fee structure, offering competitive fees from fund inception, and through reinvestment in its business to provide shareholders additional content and services.
Comparison to Other Funds’ Fees. The Funds invest their non-cash assets entirely in other American Century Investments funds. The Funds do not pay an investment advisory fee to the Advisor. Rather, each Fund indirectly bears its pro rata share of the expenses incurred by the underlying funds. Each of the underlying funds pay 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 expenses, taxes, interest, extraordinary expenses, and the 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 Rule 12b-1 under the 1940 Act. The Board concluded that the underlying fund expenses incurred by each Fund were 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 Funds. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of each Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Funds were reasonable by comparison.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the existence of collateral benefits the Advisor may receive as a result of its relationship with the Funds. They concluded that the Advisor’s primary business is managing mutual 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. The Board noted that the Advisor receives proprietary research from broker-dealers that execute fund portfolio transactions and concluded that this research is likely to benefit fund shareholders. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the
42
Funds, at least in part, due to its existing infrastructure built to serve the fund complex. The Board concluded, however, that the assets of those other clients are not material to the analysis and, where applicable, may be included with the assets of certain underlying funds 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 Funds’ 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 Funds 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 each 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, concluded that the management agreement between each Fund and the Advisor is fair and reasonable in light of the services provided and should be renewed.
43
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
Distributions you receive from 403(b), 457 and qualified plans 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 funds’ investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the funds is available without charge, upon request, by calling 1-800-345-2021. It is also available on the “About Us” page of American Century Investments’ website at americancentury.com 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 the “About Us” page at americancentury.com. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The funds’ Forms N-Q are available on the SEC’s website at sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The funds also make their complete
schedule of portfolio holdings for the most recent quarter of their fiscal year available on their website at americancentury.com and, upon request, by calling 1-800-345-2021.
44
Other Tax Information
The following information is provided pursuant to provisions of the Internal Revenue Code.
The funds hereby designate up to the maximum amount allowable as qualified dividend income for the fiscal year ended July 31, 2014.
For corporate taxpayers, the funds hereby designate the following, or up to the maximum amount allowable, of ordinary income distributions paid during the fiscal year ended July 31, 2014 as qualified for the corporate dividends received deduction.
One Choice Portfolio: Very Conservative | One Choice Portfolio: Conservative | One Choice Portfolio: Moderate | One Choice Portfolio: Aggressive | One Choice Portfolio: Very Aggressive |
$1,328,281 | $4,437,443 | $8,344,412 | $9,979,460 | $2,357,027 |
The funds hereby designate the following as qualified short-term capital gain distributions for purposes of Internal Revenue Code Section 871 for the fiscal year ended July 31, 2014.
One Choice Portfolio: Very Conservative | One Choice Portfolio: Conservative | One Choice Portfolio: Moderate | One Choice Portfolio: Aggressive | One Choice Portfolio: Very Aggressive |
$466,679 | — | — | — | — |
The funds hereby designate the following, or up to the maximum amount allowable, as long-term capital gain distributions for the fiscal year ended July 31, 2014.
One Choice Portfolio: Very Conservative | One Choice Portfolio: Conservative | One Choice Portfolio: Moderate | One Choice Portfolio: Aggressive | One Choice Portfolio: Very Aggressive |
$2,718,312 | — | — | — | — |
For the fiscal year ended July 31, 2014, the funds intend to pass through to shareholders the following, or up to the maximum amount allowable, as a foreign tax credit which represents taxes paid on income derived from sources within foreign countries or possessions of the United States. During the fiscal year ended July 31, 2014, the funds earned the following income derived from foreign sources.
Foreign Tax Credit | Foreign Source Income | |||||||
Amount | Per Outstanding Share | Amount | Per Outstanding Share | |||||
One Choice Portfolio: Very Conservative | — | — | — | — | ||||
One Choice Portfolio: Conservative | $ | 71,391 | 0.0010 | $ | 515,947 | 0.0075 | ||
One Choice Portfolio: Moderate | $ | 184,136 | 0.0019 | $ | 1,330,761 | 0.0138 | ||
One Choice Portfolio: Aggressive | $ | 170,095 | 0.0027 | $ | 1,229,284 | 0.0195 | ||
One Choice Portfolio: Very Aggressive | $ | 58,030 | 0.0037 | $ | 419,387 | 0.0271 | ||
The funds utilized the following earnings and profits distributed to shareholders on redemption of shares as part of the dividends paid deduction (tax equalization).
One Choice Portfolio: Very Conservative | One Choice Portfolio: Conservative | One Choice Portfolio: Moderate | One Choice Portfolio: Aggressive | One Choice Portfolio: Very Aggressive |
$614,844 | — | — | — | — |
45
Notes |
46
Notes |
47
Notes |
48
| ||
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 Services for the Deaf | 711 | |
American Century Asset Allocation Portfolios, 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. | ||
©2014 American Century Proprietary Holdings, Inc. All rights reserved. CL-ANN-83139 1409 | ||
ANNUAL REPORT | JULY 31, 2014 |
One ChoiceSM In Retirement Portfolio
One ChoiceSM 2015 Portfolio
One ChoiceSM 2020 Portfolio
One ChoiceSM 2025 Portfolio
One ChoiceSM 2030 Portfolio
One ChoiceSM 2035 Portfolio
One ChoiceSM 2040 Portfolio
One ChoiceSM 2045 Portfolio
One ChoiceSM 2050 Portfolio
One ChoiceSM 2055 Portfolio
Table of Contents |
President’s Letter | |
Performance | |
Portfolio Commentary | |
Portfolio Characteristics | |
Shareholder Fee Examples | |
Schedules of Investments | |
Statements of Assets and Liabilities | |
Statements of Operations | |
Statements of Changes in Net Assets | |
Notes to Financial Statements | |
Financial Highlights | |
Report of Independent Registered Public Accounting Firm | |
Management | |
Approval of Management Agreements | |
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 |
| Dear Investor: Thank you for reviewing this annual report for the 12 months ended July 31, 2014. It provides investment performance and portfolio information for the reporting period, plus longer-term historical performance data. Annual reports remain important vehicles for conveying information about fund returns, including market and economic factors that affected performance during the reporting period. For additional, updated investment and market insights, we encourage you to visit our website, americancentury.com. |
Jonathan Thomas | |
Aggressive Monetary Policies, as Investors Sought Risk and Yield, Boosted Returns
Stimulative monetary policies and expectations of longer-term economic improvement, interspersed with concerns about nearer-term weaker-than-expected economic data and geopolitical conflicts, helped drive financial market returns during the reporting period. We believe the combination of longer-term optimism about global economic growth, low costs of capital, and central bank purchases of fixed-income securities helped persuade investors to seek risk and yield. Broad stock market index returns were largely in the 10-20% range across the spectrum of developed versus emerging and large-cap versus small-cap markets. The S&P 500 Index, the MSCI EAFE Index, and the MSCI Emerging Markets Index advanced 16.94%, 15.07%, and 15.32%, respectively.
Bond performance was also generally solid, which was a surprise, given pre-2014 expectations for rising inflation and interest rates. Inflation showed signs of increasing, but remained contained, and interest rates actually fell in many markets. According to Bloomberg, the 10-year U.S. Treasury yield edged downward from 2.59% to 2.56% during the 12 months, while the 30-year U.S. Treasury yield fell from 3.65% to 3.32%. This “bull market flattening” of the U.S. Treasury yield curve helped produce a total return of 9.74% for the 30-year U.S. Treasury bond, according to Barclays. Indices that tracked U.S. high-yield and investment-grade corporate bonds and mortgage-backed securities also generally outperformed the broad Barclays U.S. Aggregate Bond Index, which advanced 3.97%.
Looking ahead, we see signs of sustained economic growth for the remainder of 2014, but headwinds persist. In the U.S., which was supposed to be an economic growth leader this year, housing market momentum has slowed, inflation and interest rates could rise, and economic growth and U.S. employment levels remain subpar compared with past post-recession periods. In this environment, we continue to believe in a disciplined, diversified, long-term investment approach, using professionally managed stock and bond portfolios—as appropriate—for meeting financial goals. We appreciate your continued trust in us.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Performance |
Total Returns as of July 31, 2014 | |||||
Average Annual Returns | |||||
Ticker Symbol | 1 year | 5 years | Since Inception | Inception Date | |
One Choice In Retirement Portfolio | |||||
Investor Class | ARTOX | 8.19% | 9.20% | 6.05% | 8/31/04 |
S&P Target Date Retirement Income Index(1) | — | 6.27% | 7.28% | 5.03% | — |
Russell 3000 Index | — | 16.37% | 17.07% | 8.46% | — |
Barclays U.S. Aggregate Bond Index | — | 3.97% | 4.46% | 4.64% | — |
Institutional Class | ATTIX | 8.40% | 9.43% | 6.27% | 8/31/04 |
A Class(2) | ARTAX | 8/31/04 | |||
No sales charge* | 7.92% | 8.93% | 5.79% | ||
With sales charge* | 1.69% | 7.65% | 5.16% | ||
C Class | ATTCX | 7.13% | — | 7.50% | 3/1/10 |
R Class | ARSRX | 7.57% | 8.65% | 5.51% | 8/31/04 |
* | 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. |
(1) | Effective November 2014, the index will change from the Russell 3000 Index and the Barclays U.S. Aggregate Bond Index to the S&P Target Date Retirement Income Index, which the fund’s investment advisor believes is more reflective of the fund’s strategy. The fund’s investment process will not change. |
(2) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance has been adjusted to reflect this charge. |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for each portfolio’s asset allocations as of the date of this report.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
3
Total Returns as of July 31, 2014 | |||||
Average Annual Returns | |||||
Ticker Symbol | 1 year | 5 years | Since Inception | Inception Date | |
One Choice 2015 Portfolio | |||||
Investor Class | ARFIX | 8.27% | 9.61% | 6.55% | 8/31/04 |
S&P Target Date To 2015 Index(1) | — | 7.68% | 8.49% | N/A(2) | — |
S&P Target Date 2015 Index | — | 8.77% | 9.69% | 6.14% | — |
Russell 3000 Index | — | 16.37% | 17.07% | 8.46% | — |
Barclays U.S. Aggregate Bond Index | — | 3.97% | 4.46% | 4.64% | — |
Institutional Class | ARNIX | 8.56% | 9.83% | 6.77% | 8/31/04 |
A Class(3) | ARFAX | 8/31/04 | |||
No sales charge* | 8.01% | 9.33% | 6.28% | ||
With sales charge* | 1.83% | 8.04% | 5.65% | ||
C Class | AFNCX | 7.21% | — | 7.77% | 3/1/10 |
R Class | ARFRX | 7.83% | 9.08% | 6.03% | 8/31/04 |
* | 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. |
(1) | Effective November 2014, the index will change from the Russell 3000 Index and the Barclays U.S. Aggregate Bond Index to the S&P Target Date To 2015 Index, which the fund’s investment advisor believes is more reflective of the fund’s strategy. The fund’s investment process will not change. |
(2) | Benchmark data first available May 2007. |
(3) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance has been adjusted to reflect this charge. |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for each portfolio’s asset allocations as of the date of this report.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
4
Total Returns as of July 31, 2014 | |||||
Average Annual Returns | |||||
Ticker Symbol | 1 year | 5 years | Since Inception | Inception Date | |
One Choice 2020 Portfolio | |||||
Investor Class | ARBVX | 8.99% | 10.21% | 5.59% | 5/30/08 |
S&P Target Date To 2020 Index(1) | — | 8.61% | 9.46% | 4.82% | — |
Russell 3000 Index | — | 16.37% | 17.07% | 7.89% | — |
Barclays U.S. Aggregate Bond Index | — | 3.97% | 4.46% | 4.85% | — |
Institutional Class | ARBSX | 9.20% | 10.43% | 5.79% | 5/30/08 |
A Class(2) | ARBMX | 5/30/08 | |||
No sales charge* | 8.64% | 9.94% | 5.31% | ||
With sales charge* | 2.42% | 8.63% | 4.30% | ||
C Class | ARNCX | 7.91% | — | 8.29% | 3/1/10 |
R Class | ARBRX | 8.37% | 9.67% | 5.06% | 5/30/08 |
* | 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. |
(1) | Effective November 2014, the index will change from the Russell 3000 Index and the Barclays U.S. Aggregate Bond Index to the S&P Target Date To 2020 Index, which the fund’s investment advisor believes is more reflective of the fund’s strategy. The fund’s investment process will not change. |
(2) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance has been adjusted to reflect this charge. |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for each portfolio’s asset allocations as of the date of this report.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
5
Total Returns as of July 31, 2014 | |||||
Average Annual Returns | |||||
Ticker Symbol | 1 year | 5 years | Since Inception | Inception Date | |
One Choice 2025 Portfolio | |||||
Investor Class | ARWIX | 9.61% | 10.79% | 7.10% | 8/31/04 |
S&P Target Date To 2025 Index(1) | — | 9.47% | 10.34% | N/A(2) | — |
S&P Target Date 2025 Index | — | 10.65% | 11.48% | 6.83% | — |
Russell 3000 Index | — | 16.37% | 17.07% | 8.46% | — |
Barclays U.S. Aggregate Bond Index | — | 3.97% | 4.46% | 4.64% | — |
Institutional Class | ARWFX | 9.83% | 11.01% | 7.31% | 8/31/04 |
A Class(3) | ARWAX | 8/31/04 | |||
No sales charge* | 9.35% | 10.53% | 6.83% | ||
With sales charge* | 3.02% | 9.24% | 6.20% | ||
C Class | ARWCX | 8.46% | — | 8.80% | 3/1/10 |
R Class | ARWRX | 9.01% | 10.23% | 6.56% | 8/31/04 |
* | 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. |
(1) | Effective November 2014, the index will change from the Russell 3000 Index and the Barclays U.S. Aggregate Bond Index to the S&P Target Date To 2025 Index, which the fund’s investment advisor believes is more reflective of the fund’s strategy. The fund’s investment process will not change. |
(2) | Benchmark data first available May 2007. |
(3) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance has been adjusted to reflect this charge. |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for each portfolio’s asset allocations as of the date of this report.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
6
Total Returns as of July 31, 2014 | |||||
Average Annual Returns | |||||
Ticker Symbol | 1 year | 5 years | Since Inception | Inception Date | |
One Choice 2030 Portfolio | |||||
Investor Class | ARCVX | 10.15% | 11.44% | 5.60% | 5/30/08 |
S&P Target Date To 2030 Index(1) | — | 10.28% | 11.17% | 4.91% | — |
Russell 3000 Index | — | 16.37% | 17.07% | 7.89% | — |
Barclays U.S. Aggregate Bond Index | — | 3.97% | 4.46% | 4.85% | — |
Institutional Class | ARCSX | 10.37% | 11.64% | 5.79% | 5/30/08 |
A Class(2) | ARCMX | 5/30/08 | |||
No sales charge* | 9.89% | 11.14% | 5.32% | ||
With sales charge* | 3.55% | 9.83% | 4.31% | ||
C Class | ARWOX | 9.07% | — | 9.30% | 3/1/10 |
R Class | ARCRX | 9.53% | 10.85% | 5.05% | 5/30/08 |
* | 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. |
(1) | Effective November 2014, the index will change from the Russell 3000 Index and the Barclays U.S. Aggregate Bond Index to the S&P Target Date To 2030 Index, which the fund’s investment advisor believes is more reflective of the fund’s strategy. The fund’s investment process will not change. |
(2) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance has been adjusted to reflect this charge. |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for each portfolio’s asset allocations as of the date of this report.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
7
Total Returns as of July 31, 2014 | |||||
Average Annual Returns | |||||
Ticker Symbol | 1 year | 5 years | Since Inception | Inception Date | |
One Choice 2035 Portfolio | |||||
Investor Class | ARYIX | 10.91% | 12.19% | 7.60% | 8/31/04 |
S&P Target Date To 2035 Index(1) | — | 11.08% | 11.89% | N/A(2) | — |
S&P Target Date 2035 Index | — | 12.15% | 12.66% | 7.13% | — |
Russell 3000 Index | — | 16.37% | 17.07% | 8.46% | — |
Barclays U.S. Aggregate Bond Index | — | 3.97% | 4.46% | 4.64% | — |
Institutional Class | ARLIX | 11.04% | 12.39% | 7.81% | 8/31/04 |
A Class(3) | ARYAX | 8/31/04 | |||
No sales charge* | 10.57% | 11.90% | 7.33% | ||
With sales charge* | 4.18% | 10.59% | 6.69% | ||
C Class | ARLCX | 9.76% | — | 9.97% | 3/1/10 |
R Class | ARYRX | 10.30% | 11.61% | 7.06% | 8/31/04 |
* | 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. |
(1) | Effective November 2014, the index will change from the Russell 3000 Index and the Barclays U.S. Aggregate Bond Index to the S&P Target Date To 2035 Index, which the fund’s investment advisor believes is more reflective of the fund’s strategy. The fund’s investment process will not change. |
(2) | Benchmark data first available May 2007. |
(3) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance has been adjusted to reflect this charge. |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for each portfolio’s asset allocations as of the date of this report.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
8
Total Returns as of July 31, 2014 | |||||
Average Annual Returns | |||||
Ticker Symbol | 1 year | 5 years | Since Inception | Inception Date | |
One Choice 2040 Portfolio | |||||
Investor Class | ARDVX | 11.63% | 12.85% | 6.05% | 5/30/08 |
S&P Target Date To 2040 Index(1) | — | 11.75% | 12.51% | 5.06% | — |
Russell 3000 Index | — | 16.37% | 17.07% | 7.89% | — |
Barclays U.S. Aggregate Bond Index | — | 3.97% | 4.46% | 4.85% | — |
Institutional Class | ARDSX | 11.84% | 13.10% | 6.25% | 5/30/08 |
A Class(2) | ARDMX | 5/30/08 | |||
No sales charge* | 11.36% | 12.59% | 5.78% | ||
With sales charge* | 4.98% | 11.27% | 4.77% | ||
C Class | ARNOX | 10.46% | — | 10.58% | 3/1/10 |
R Class | ARDRX | 11.10% | 12.31% | 5.52% | 5/30/08 |
* | 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. |
(1) | Effective November 2014, the index will change from the Russell 3000 Index and the Barclays U.S. Aggregate Bond Index to the S&P Target Date To 2040 Index, which the fund’s investment advisor believes is more reflective of the fund’s strategy. The fund’s investment process will not change. |
(2) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance has been adjusted to reflect this charge. |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for each portfolio’s asset allocations as of the date of this report.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
9
Total Returns as of July 31, 2014 | |||||
Average Annual Returns | |||||
Ticker Symbol | 1 year | 5 years | Since Inception | Inception Date | |
One Choice 2045 Portfolio | |||||
Investor Class | AROIX | 12.34% | 13.30% | 7.97% | 8/31/04 |
S&P Target Date To 2045 Index(1) | — | 12.36% | 13.06% | N/A(2) | — |
S&P Target Date 2040 Index(3) | — | 12.65% | 13.03% | 7.27% | — |
Russell 3000 Index | — | 16.37% | 17.07% | 8.46% | — |
Barclays U.S. Aggregate Bond Index | — | 3.97% | 4.46% | 4.64% | — |
Institutional Class | AOOIX | 12.55% | 13.53% | 8.19% | 8/31/04 |
A Class(4) | AROAX | 8/31/04 | |||
No sales charge* | 12.08% | 13.02% | 7.70% | ||
With sales charge* | 5.62% | 11.70% | 7.06% | ||
C Class | AROCX | 11.18% | — | 11.01% | 3/1/10 |
R Class | ARORX | 11.73% | 12.73% | 7.43% | 8/31/04 |
* | 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. |
(1) | Effective November 2014, the index will change from the Russell 3000 Index and the Barclays U.S. Aggregate Bond Index to the S&P Target Date To 2045 Index, which the fund’s investment advisor believes is more reflective of the fund’s strategy. The fund’s investment process will not change. |
(2) | Benchmark data first available May 2007. |
(3) | There is not an S&P Target Date 2045 (or longer) Index with history to cover the performance period since the fund's inception. The fund's investment advisor believes the S&P Target Date 2040 Index is a reasonable proxy for comparison purposes. |
(4) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance has been adjusted to reflect this charge. |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for each portfolio’s asset allocations as of the date of this report.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
10
Total Returns as of July 31, 2014 | |||||
Average Annual Returns | |||||
Ticker Symbol | 1 year | 5 years | Since Inception | Inception Date | |
One Choice 2050 Portfolio | |||||
Investor Class | ARFVX | 12.59% | 13.54% | 5.89% | 5/30/08 |
S&P Target Date To 2050 Index(1) | — | 12.91% | 13.35% | 5.40% | — |
Russell 3000 Index | — | 16.37% | 17.07% | 7.89% | — |
Barclays U.S. Aggregate Bond Index | — | 3.97% | 4.46% | 4.85% | — |
Institutional Class | ARFSX | 12.79% | 13.77% | 6.10% | 5/30/08 |
A Class(2) | ARFMX | 5/30/08 | |||
No sales charge* | 12.32% | 13.25% | 5.62% | ||
With sales charge* | 5.83% | 11.93% | 4.61% | ||
C Class | ARFDX | 11.40% | — | 11.20% | 3/1/10 |
R Class | ARFWX | 11.96% | 12.96% | 5.35% | 5/30/08 |
* | 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. |
(1) | Effective November 2014, the index will change from the Russell 3000 Index and the Barclays U.S. Aggregate Bond Index to the S&P Target Date To 2050 Index, which the fund’s investment advisor believes is more reflective of the fund’s strategy. The fund’s investment process will not change. |
(2) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance has been adjusted to reflect this charge. |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for each portfolio’s asset allocations as of the date of this report.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
11
Total Returns as of July 31, 2014 | ||||
Average Annual Returns | ||||
Ticker Symbol | 1 year | Since Inception | Inception Date | |
One Choice 2055 Portfolio | ||||
Investor Class | AREVX | 12.87% | 10.44% | 3/31/11 |
S&P Target Date To 2055+ Index(1) | — | 13.48% | 9.90% | — |
Russell 3000 Index | — | 16.37% | 13.99% | — |
Barclays U.S. Aggregate Bond Index | — | 3.97% | 3.91% | — |
Institutional Class | ARENX | 13.09% | 10.65% | 3/31/11 |
A Class | AREMX | 3/31/11 | ||
No sales charge* | 12.52% | 10.13% | ||
With sales charge* | 6.07% | 8.20% | ||
C Class | AREFX | 11.72% | 9.33% | 3/31/11 |
R Class | AREOX | 12.25% | 9.88% | 3/31/11 |
* | 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. |
(1) | Effective November 2014, the index will change from the Russell 3000 Index and the Barclays U.S. Aggregate Bond Index to the S&P Target Date To 2055+ Index, which the fund’s investment advisor believes is more reflective of the fund’s strategy. The fund’s investment process will not change. |
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for each portfolio’s asset allocations as of the date of this report.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
12
Growth of $10,000 Over Life of One Choice In Retirement Portfolio — Investor Class |
$10,000 investment made August 31, 2004 |
Value on July 31, 2014 | |
Investor Class — $17,906 | |
S&P Target Date Retirement Income Index — $16,264 | |
Russell 3000 Index — $22,374 | |
Barclays U.S. Aggregate Bond Index — $15,689 | |
*From August 31, 2004, the Investor Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
13
Growth of $10,000 Over Life of One Choice 2015 Portfolio — Investor Class* |
$10,000 investment made August 31, 2004 |
Value on July 31, 2014 | |
Investor Class — $18,760 | |
S&P Target Date 2015 Index — $18,055 | |
Russell 3000 Index — $22,374 | |
Barclays U.S. Aggregate Bond Index — $15,689 | |
* Since S&P Target Date To 2015 Index return data is only available from May 2007, it is not included in the
line chart.
**From August 31, 2004, the Investor Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
14
Growth of $10,000 Over Life of One Choice 2020 Portfolio — Investor Class |
$10,000 investment made May 30, 2008 |
Value on July 31, 2014 | |
Investor Class — $13,988 | |
S&P Target Date To 2020 Index — $13,371 | |
Russell 3000 Index — $15,981 | |
Barclays U.S. Aggregate Bond Index — $13,396 | |
*From May 30, 2008, the Investor Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
15
Growth of $10,000 Over Life of One Choice 2025 Portfolio — Investor Class* |
$10,000 investment made August 31, 2004 |
Value on July 31, 2014 | |
Investor Class — $19,747 | |
S&P Target Date 2025 Index — $19,244 | |
Russell 3000 Index — $22,374 | |
Barclays U.S. Aggregate Bond Index — $15,689 | |
* Since S&P Target Date To 2025 Index return data is only available from May 2007, it is not included in the
line chart.
**From August 31, 2004, the Investor Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
16
Growth of $10,000 Over Life of One Choice 2030 Portfolio — Investor Class |
$10,000 investment made May 30, 2008 |
Value on July 31, 2014 | |
Investor Class — $13,997 | |
S&P Target Date To 2030 Index — $13,442 | |
Russell 3000 Index — $15,981 | |
Barclays U.S. Aggregate Bond Index — $13,396 | |
*From May 30, 2008, the Investor Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
17
Growth of $10,000 Over Life of One Choice 2035 Portfolio — Investor Class* |
$10,000 investment made August 31, 2004 |
Value on July 31, 2014 | |
Investor Class — $20,675 | |
S&P Target Date 2035 Index — $19,798 | |
Russell 3000 Index — $22,374 | |
Barclays U.S. Aggregate Bond Index — $15,689 | |
* Since S&P Target Date To 2035 Index return data is only available from May 2007, it is not included in the
line chart.
**From August 31, 2004, the Investor Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
18
Growth of $10,000 Over Life of One Choice 2040 Portfolio — Investor Class |
$10,000 investment made May 30, 2008 |
Value on July 31, 2014 | |
Investor Class — $14,369 | |
S&P Target Date To 2040 Index — $13,559 | |
Russell 3000 Index — $15,981 | |
Barclays U.S. Aggregate Bond Index — $13,396 | |
*From May 30, 2008, the Investor Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
19
Growth of $10,000 Over Life of One Choice 2045 Portfolio — Investor Class* |
$10,000 investment made August 31, 2004 |
Value on July 31, 2014 | |
Investor Class — $21,405 | |
S&P Target Date 2040 Index** — $20,047 | |
Russell 3000 Index — $22,374 | |
Barclays U.S. Aggregate Bond Index — $15,689 | |
* Since S&P Target Date To 2045 Index return data is only available from May 2007, it is not included in the
line chart.
**There is not an S&P Target Date 2045 (or longer) Index with history to cover the performance period since
the fund's inception. The fund's investment advisor believes the S&P Target Date 2040 Index is a
reasonable proxy for comparison purposes.
***From August 31, 2004, the Investor Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
20
Growth of $10,000 Over Life of One Choice 2050 Portfolio — Investor Class |
$10,000 investment made May 30, 2008 |
Value on July 31, 2014 | |
Investor Class — $14,233 | |
S&P Target Date To 2050 Index — $13,831 | |
Russell 3000 Index — $15,981 | |
Barclays U.S. Aggregate Bond Index — $13,396 | |
*From May 30, 2008, the Investor Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
21
Growth of $10,000 Over Life of One Choice 2055 Portfolio — Investor Class |
$10,000 investment made March 31, 2011 |
Value on July 31, 2014 | |
Investor Class — $13,928 | |
S&P Target Date To 2055+ Index — $13,700 | |
Russell 3000 Index — $15,478 | |
Barclays U.S. Aggregate Bond Index — $11,367 | |
*From March 31, 2011, the Investor Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
22
Total Annual Fund Operating Expenses | |||||
Investor Class | Institutional Class | A Class | C Class | R Class | |
One Choice In Retirement Portfolio | 0.77% | 0.57% | 1.02% | 1.77% | 1.27% |
One Choice 2015 Portfolio | 0.79% | 0.59% | 1.04% | 1.79% | 1.29% |
One Choice 2020 Portfolio | 0.82% | 0.62% | 1.07% | 1.82% | 1.32% |
One Choice 2025 Portfolio | 0.85% | 0.65% | 1.10% | 1.85% | 1.35% |
One Choice 2030 Portfolio | 0.87% | 0.67% | 1.12% | 1.87% | 1.37% |
One Choice 2035 Portfolio | 0.90% | 0.70% | 1.15% | 1.90% | 1.40% |
One Choice 2040 Portfolio | 0.93% | 0.73% | 1.18% | 1.93% | 1.43% |
One Choice 2045 Portfolio | 0.97% | 0.77% | 1.22% | 1.97% | 1.47% |
One Choice 2050 Portfolio | 0.98% | 0.78% | 1.23% | 1.98% | 1.48% |
One Choice 2055 Portfolio | 0.99% | 0.79% | 1.24% | 1.99% | 1.49% |
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. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. A portfolio’s target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. 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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as administrative fees) that reduce returns, while the total returns of the indices do not.
23
Portfolio Commentary |
Portfolio Managers: Scott Wittman, Rich Weiss, Scott Wilson, Radu Gabudean, and David MacEwen
In December 2013, David MacEwen, Senior Vice President, became Co-Chief Investment Officer and chairman of the firm’s Asset Allocation Committee.
Performance Summary
Each of the ten One Choice Target Date Portfolios advanced for the fiscal year ended July 31, 2014, with returns ranging from 12.87%* for the One Choice 2055 Portfolio to 8.19% for the One Choice In Retirement Portfolio (see pages 3-23 for more detailed performance information). The gains for the 12-month period reflected solid returns of both global equity and fixed-income markets, which rallied on signs of continued global economic growth and accommodative monetary policies enacted by central banks around the globe.
Because of the Portfolios’ strategic exposure to a variety of asset classes, a review of the financial markets helps explain much of their performance.
Market Overview
Global equity markets appreciated during the fiscal year, driven in large part by continued signs of steady, albeit slow, growth. A commitment by central banks around the world to create an environment stimulative of growth while avoiding deflation supported equities. Although the U.S. Federal Reserve (the Fed) began gradual tapering of its monthly quantitative easing (QE) program, continued Fed support drove markets as broad U.S. indices staged record-breaking rallies several times during the period. U.S. equities took a breather during an unusually harsh winter that pressured the already-tepid economic recovery. Slowdowns were seen in several key areas including sales of consumer discretionary items such as appliances and autos, as well as construction, real estate, and energy. Flaring political tensions in several regions, including Russia/Ukraine and the Middle East, also dampened equity returns. A spring/summer rebound sent markets to record highs on the heels of encouraging industrial production, consumer data, and the lowest unemployment level in nearly six years. Large-cap U.S. equities led both the small- and mid-cap segments, and despite a stark divergence in performance during the winter, growth stocks finished the period ahead of their value counterparts. Broad non-U.S. markets, both developed and emerging, also produced strong results, marginally trailing those of the U.S. but ending the period with double-digit gains.
The U.S. bond market produced positive returns for the 12-months ending July 31, 2014, driven in large part by the rally that ushered in 2014. Much of the period was characterized by a heightened appetite for risk and demand for yield as investors gravitated toward higher-yielding securities. Bond yields fluctuated throughout the period, rising during the early part of the fiscal year due to uncertainty surrounding the beginning of the end of the Fed’s stimulus program. Weaker-than-expected economic activity coupled with geopolitical tensions at the beginning of 2014 helped drive down U.S. Treasury yields, which declined again following an unexpectedly large first-quarter GDP revision. Given the risk-on environment, high-yield corporate bonds and longer-duration/maturity securities were among the best performers, although all sectors of the U.S. bond market advanced. Particular strength was seen in long-term U.S. Treasuries, municipal bonds, and high-yield bonds, which led investment grade bonds. Non-U.S. bonds also ended the period with strong results, outperforming those of the U.S. as the European Central Bank eased monetary policy and Japan continued aggressive easing efforts.
* | 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 pages 3-12 for returns for all share classes. |
24
Fund Information
Each One Choice Target Date Portfolio is a “fund of funds” that invests in other American Century Investments mutual funds to achieve its investment objective and target asset allocation. (See pages 27-28 for the specific underlying fund allocations for each Portfolio.) A Portfolio’s target date is the approximate year when investors plan to retire and likely would stop making new investments in the fund. The principal value of the investment is not guaranteed at any time, including at the target date. One Choice In Retirement Portfolio is generally intended for investors near, at, or in retirement. There is no guarantee that an investment in any of the funds will provide adequate income at or through an investor’s retirement.
Each target-dated Portfolio seeks the highest total return consistent with its asset mix. Over time, the asset mix and weightings are adjusted to be more conservative. In general, as the target year approaches, each Portfolio’s allocation becomes more conservative by decreasing the allocation to stock funds and increasing the allocation to bond and money market funds. By the time each Portfolio reaches its target date, its target asset mix will become fixed and match that of One Choice In Retirement Portfolio, which seeks current income and capital appreciation.
Portfolio Performance
Within the Portfolios, each equity fund, both U.S. and non-U.S., produced strong positive returns for the 12-month period. NT Core Equity Plus Fund generated the best absolute performance, producing a return of nearly 19%. Other leading absolute performers included NT Equity Growth Fund and NT Growth Fund, although the latter underperformed its underlying fund benchmark. NT Small Company Fund generated strong outperformance of its underlying fund benchmark and contributed significantly to results across all Portfolios. Underperformance among equity funds, relative to their underlying fund benchmarks, came from NT International Growth Fund, NT Heritage Fund, and NT Large Company Value Fund, all of which dampened overall Portfolio results.
Each of the Portfolios’ fixed-income components also advanced. Top absolute performance in the fixed-income space came from High-Yield Fund and International Bond Fund (held by Portfolios nearing their target dates), although unsuccessful security selection in those funds led them to underperform their underlying fund benchmarks. NT Diversified Bond Fund, the largest fixed-income segment in the Portfolios, modestly outperformed its benchmark for the 12-month period, contributing positively to performance.
A Look Ahead
We believe that global economic recovery will continue to progress, albeit at a slower pace than during prior post-recessionary periods, and we expect it to stay the course through the remainder of 2014. Recent indicators such as improvements in small business and consumer confidence suggest a sustainable rebound in the U.S., and economic growth is likely to further benefit from the recovering labor and housing markets. The Fed is expected to continue its tapering of QE as labor market conditions improve which is likely to lead to moderately higher interest rates. Despite mixed data, Europe seems poised to continue its rebound, especially those countries and sectors that have made meaningful progress in structural reform. While accommodative monetary policy is expected to remain in place in the eurozone, interest rates in the U.K. could rise if economic recovery proceeds at the pace seen recently. Asia remains an area to carefully monitor given a number of unknowns including the impact of Japan’s recent tax hike and the long-term effectiveness of economic reforms on the country’s recovery. Likewise, we are closely watching the effects of government reform programs on China’s growth. Though a continuation of political instability as well as the potential for rising inflation and interest rates could lead to heightened levels of market volatility, resilient global demand and continued accommodative monetary policy are supportive for emerging markets, which have seen a pickup in exports, appear attractive on valuations, and could gain further momentum. Interest rates are likely to remain relatively low and
25
rise only gradually, and tame inflation combined with stimulative monetary policies are supportive of global growth and financial markets.
Although we do not make tactical allocation shifts within the One Choice Target Date Portfolios, the teams managing the underlying funds may make adjustments based on where they see the greatest opportunities. For example, within the NT Diversified Bond Fund, the largest component of the Portfolios’ fixed-income allocation, the fixed income team remains underweight to Treasuries and government agencies in favor of spread (non-Treasury) sectors, including overweight positions in corporate credit and the securitized sector. These market dynamics, and the constantly changing investment environment, reinforce our belief that broad-based diversification among asset classes and within asset classes is essential to long-term investing success.
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Portfolio Characteristics |
Underlying Fund Allocations(1) as a % of net assets as of July 31, 2014 | |||||
One Choice In Retirement Portfolio | One Choice 2015 Portfolio | One Choice 2020 Portfolio | One Choice 2025 Portfolio | One Choice 2030 Portfolio | |
Equity | |||||
NT Core Equity Plus Fund | 3.0% | 3.0% | 3.0% | 3.0% | 3.2% |
NT Equity Growth Fund | 9.8% | 9.9% | 9.5% | 9.2% | 9.2% |
NT Growth Fund | 6.4% | 6.5% | 7.8% | 8.9% | 10.6% |
NT Heritage Fund | 2.5% | 2.6% | 3.6% | 4.5% | 5.0% |
NT Large Company Value Fund | 10.8% | 10.9% | 11.1% | 11.3% | 11.8% |
NT Mid Cap Value Fund | 4.0% | 4.1% | 4.9% | 5.5% | 5.2% |
NT Small Company Fund | 2.0% | 2.0% | 2.0% | 2.4% | 3.3% |
Real Estate Fund | 1.0% | 1.0% | 1.3% | 1.5% | 1.8% |
NT Emerging Markets Fund | — | 0.1% | 1.1% | 2.3% | 2.8% |
NT International Growth Fund | 5.0% | 5.0% | 5.9% | 6.8% | 8.3% |
Total Equity | 44.5% | 45.1% | 50.2% | 55.4% | 61.2% |
Fixed Income | |||||
High-Yield Fund | 3.8% | 3.8% | 3.6% | 3.5% | 3.1% |
Inflation-Adjusted Bond Fund | 1.5% | 1.7% | 3.0% | 4.1% | 5.0% |
NT Diversified Bond Fund | 26.9% | 26.7% | 25.7% | 24.5% | 22.1% |
Short Duration Inflation Protection Bond Fund | 6.2% | 5.9% | 4.3% | 2.8% | 1.3% |
International Bond Fund | 7.0% | 6.9% | 5.9% | 4.7% | 2.3% |
Total Fixed Income | 45.4% | 45.0% | 42.5% | 39.6% | 33.8% |
Premium Money Market Fund | 10.1% | 9.9% | 7.3% | 5.0% | 5.0% |
Other Assets and Liabilities | —(2) | —(2) | —(2) | —(2) | —(2) |
(1) | Underlying fund investments represent Institutional Class, except Premium Money Market Fund Investor Class. |
(2) | Category is less than 0.05% of total net assets. |
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Underlying Fund Allocations(1) as a % of net assets as of July 31, 2014 | |||||
One Choice 2035 Portfolio | One Choice 2040 Portfolio | One Choice 2045 Portfolio | One Choice 2050 Portfolio | One Choice 2055 Portfolio | |
Equity | |||||
NT Core Equity Plus Fund | 3.2% | 3.5% | 4.4% | 4.5% | 4.5% |
NT Equity Growth Fund | 9.3% | 10.1% | 10.2% | 10.2% | 10.7% |
NT Growth Fund | 12.6% | 13.5% | 14.4% | 14.7% | 15.2% |
NT Heritage Fund | 5.4% | 6.3% | 7.2% | 7.2% | 7.5% |
NT Large Company Value Fund | 12.5% | 13.5% | 14.4% | 14.9% | 15.4% |
NT Mid Cap Value Fund | 5.4% | 6.4% | 7.3% | 7.3% | 7.5% |
NT Small Company Fund | 4.2% | 4.1% | 4.0% | 4.6% | 5.0% |
Real Estate Fund | 2.0% | 2.3% | 2.5% | 2.8% | 3.0% |
NT Emerging Markets Fund | 3.4% | 4.3% | 5.3% | 6.1% | 6.5% |
NT International Growth Fund | 9.4% | 9.8% | 10.2% | 10.0% | 9.5% |
Total Equity | 67.4% | 73.8% | 79.9% | 82.3% | 84.8% |
Fixed Income | |||||
High-Yield Fund | 2.7% | 2.3% | 2.0% | 1.7% | 1.5% |
Inflation-Adjusted Bond Fund | 5.5% | 4.8% | 4.0% | 3.5% | 3.0% |
NT Diversified Bond Fund | 19.6% | 16.8% | 14.1% | 12.5% | 10.7% |
Total Fixed Income | 27.8% | 23.9% | 20.1% | 17.7% | 15.2% |
Premium Money Market Fund | 4.8% | 2.3% | — | — | — |
Other Assets and Liabilities | —(2) | —(2) | —(2) | —(2) | —(2) |
(1) | Underlying fund investments represent Institutional Class, except Premium Money Market Fund Investor Class. |
(2) | Category is less than 0.05% of total net assets. |
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Shareholder Fee Examples |
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. As a shareholder in the underlying American Century Investments funds, your fund will indirectly bear its pro rata share of the expenses incurred by the underlying funds. These expenses are not included in the fund’s annualized expense ratio or the expenses paid during the period. These expenses are, however, included in the effective expenses paid during the period.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from February 1, 2014 to July 31, 2014.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or Institutional Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual 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 $12.50 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.
29
Beginning Account Value 2/1/14 | Ending Account Value 7/31/14 | Expenses Paid During Period(1) 2/1/14 – 7/31/14 | Annualized Expense Ratio(1) | Effective Expenses Paid During Period(2) 2/1/14 – 7/31/14 | Effective Annualized Expense Ratio(2) | |
One Choice In Retirement Portfolio | ||||||
Actual | ||||||
Investor Class | $1,000 | $1,046.90 | $1.02 | 0.20% | $3.81 | 0.75% |
Institutional Class | $1,000 | $1,047.80 | $0.00 | 0.00%(3) | $2.79 | 0.55% |
A Class | $1,000 | $1,045.70 | $2.28 | 0.45% | $5.07 | 1.00% |
C Class | $1,000 | $1,041.50 | $6.07 | 1.20% | $8.86 | 1.75% |
R Class | $1,000 | $1,043.70 | $3.55 | 0.70% | $6.33 | 1.25% |
Hypothetical | ||||||
Investor Class | $1,000 | $1,023.80 | $1.00 | 0.20% | $3.76 | 0.75% |
Institutional Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $2.76 | 0.55% |
A Class | $1,000 | $1,022.56 | $2.26 | 0.45% | $5.01 | 1.00% |
C Class | $1,000 | $1,018.84 | $6.01 | 1.20% | $8.75 | 1.75% |
R Class | $1,000 | $1,021.32 | $3.51 | 0.70% | $6.26 | 1.25% |
One Choice 2015 Portfolio | ||||||
Actual | ||||||
Investor Class | $1,000 | $1,047.00 | $1.02 | 0.20% | $3.86 | 0.76% |
Institutional Class | $1,000 | $1,048.50 | $0.00 | 0.00%(3) | $2.84 | 0.56% |
A Class | $1,000 | $1,046.30 | $2.28 | 0.45% | $5.12 | 1.01% |
C Class | $1,000 | $1,042.40 | $6.08 | 1.20% | $8.91 | 1.76% |
R Class | $1,000 | $1,045.50 | $3.55 | 0.70% | $6.39 | 1.26% |
Hypothetical | ||||||
Investor Class | $1,000 | $1,023.80 | $1.00 | 0.20% | $3.81 | 0.76% |
Institutional Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $2.81 | 0.56% |
A Class | $1,000 | $1,022.56 | $2.26 | 0.45% | $5.06 | 1.01% |
C Class | $1,000 | $1,018.84 | $6.01 | 1.20% | $8.80 | 1.76% |
R Class | $1,000 | $1,021.32 | $3.51 | 0.70% | $6.31 | 1.26% |
(1) | Expenses are equal to the class’s annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 181, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. The fees and expenses of the underlying American Century Investments funds in which the fund invests are not included in the class’s annualized expense ratio. |
(2) | Effective expenses reflect the sum of expenses borne directly by the class plus the fund's pro rata share of the weighted average expense ratio of the underlying funds in which it invests. The effective annualized expense ratio combines the class's annualized expense ratio and the annualized weighted average expense ratio of the underlying funds. The annualized weighted average expense ratio of the underlying funds for the one-half year period reflects the actual expense ratio of each underlying fund from its most recent shareholder report, annualized and weighted for the fund's relative average investment therein during the period. |
(3) | Other expenses, which include directors' fees and expenses, did not exceed 0.005%. |
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Beginning Account Value 2/1/14 | Ending Account Value 7/31/14 | Expenses Paid During Period(1)2/1/14 – 7/31/14 | Annualized Expense Ratio(1) | Effective Expenses Paid During Period(2)2/1/14 – 7/31/14 | Effective Annualized Expense Ratio(2) | |
One Choice 2020 Portfolio | ||||||
Actual | ||||||
Investor Class | $1,000 | $1,051.50 | $1.02 | 0.20% | $4.02 | 0.79% |
Institutional Class | $1,000 | $1,052.30 | $0.00 | 0.00%(3) | $3.00 | 0.59% |
A Class | $1,000 | $1,048.90 | $2.29 | 0.45% | $5.28 | 1.04% |
C Class | $1,000 | $1,046.20 | $6.09 | 1.20% | $9.08 | 1.79% |
R Class | $1,000 | $1,048.90 | $3.56 | 0.70% | $6.55 | 1.29% |
Hypothetical | ||||||
Investor Class | $1,000 | $1,023.80 | $1.00 | 0.20% | $3.96 | 0.79% |
Institutional Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $2.96 | 0.59% |
A Class | $1,000 | $1,022.56 | $2.26 | 0.45% | $5.21 | 1.04% |
C Class | $1,000 | $1,018.84 | $6.01 | 1.20% | $8.95 | 1.79% |
R Class | $1,000 | $1,021.32 | $3.51 | 0.70% | $6.46 | 1.29% |
One Choice 2025 Portfolio | ||||||
Actual | ||||||
Investor Class | $1,000 | $1,054.30 | $1.02 | 0.20% | $4.18 | 0.82% |
Institutional Class | $1,000 | $1,055.00 | $0.00 | 0.00%(3) | $3.16 | 0.62% |
A Class | $1,000 | $1,052.80 | $2.29 | 0.45% | $5.45 | 1.07% |
C Class | $1,000 | $1,049.10 | $6.10 | 1.20% | $9.25 | 1.82% |
R Class | $1,000 | $1,051.40 | $3.56 | 0.70% | $6.71 | 1.32% |
Hypothetical | ||||||
Investor Class | $1,000 | $1,023.80 | $1.00 | 0.20% | $4.11 | 0.82% |
Institutional Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $3.11 | 0.62% |
A Class | $1,000 | $1,022.56 | $2.26 | 0.45% | $5.36 | 1.07% |
C Class | $1,000 | $1,018.84 | $6.01 | 1.20% | $9.10 | 1.82% |
R Class | $1,000 | $1,021.32 | $3.51 | 0.70% | $6.61 | 1.32% |
(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 181, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. The fees and expenses of the underlying American Century Investments funds in which the fund invests are not included in the class’s annualized expense ratio. |
(2) | Effective expenses reflect the sum of expenses borne directly by the class plus the fund's pro rata share of the weighted average expense ratio of the underlying funds in which it invests. The effective annualized expense ratio combines the class's annualized expense ratio and the annualized weighted average expense ratio of the underlying funds. The annualized weighted average expense ratio of the underlying funds for the one-half year period reflects the actual expense ratio of each underlying fund from its most recent shareholder report, annualized and weighted for the fund's relative average investment therein during the period. |
(3) | Other expenses, which include directors' fees and expenses, did not exceed 0.005%. |
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Beginning Account Value 2/1/14 | Ending Account Value 7/31/14 | Expenses Paid During Period(1)2/1/14 – 7/31/14 | Annualized Expense Ratio(1) | Effective Expenses Paid During Period(2)2/1/14 – 7/31/14 | Effective Annualized Expense Ratio(2) | |
One Choice 2030 Portfolio | ||||||
Actual | ||||||
Investor Class | $1,000 | $1,056.90 | $1.02 | 0.20% | $4.28 | 0.84% |
Institutional Class | $1,000 | $1,057.80 | $0.00 | 0.00%(3) | $3.27 | 0.64% |
A Class | $1,000 | $1,056.20 | $2.29 | 0.45% | $5.56 | 1.09% |
C Class | $1,000 | $1,051.80 | $6.10 | 1.20% | $9.36 | 1.84% |
R Class | $1,000 | $1,053.60 | $3.56 | 0.70% | $6.82 | 1.34% |
Hypothetical | ||||||
Investor Class | $1,000 | $1,023.80 | $1.00 | 0.20% | $4.21 | 0.84% |
Institutional Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $3.21 | 0.64% |
A Class | $1,000 | $1,022.56 | $2.26 | 0.45% | $5.46 | 1.09% |
C Class | $1,000 | $1,018.84 | $6.01 | 1.20% | $9.20 | 1.84% |
R Class | $1,000 | $1,021.32 | $3.51 | 0.70% | $6.71 | 1.34% |
One Choice 2035 Portfolio | ||||||
Actual | ||||||
Investor Class | $1,000 | $1,060.50 | $1.02 | 0.20% | $4.39 | 0.86% |
Institutional Class | $1,000 | $1,061.10 | $0.00 | 0.00%(3) | $3.37 | 0.66% |
A Class | $1,000 | $1,059.10 | $2.30 | 0.45% | $5.67 | 1.11% |
C Class | $1,000 | $1,055.00 | $6.11 | 1.20% | $9.48 | 1.86% |
R Class | $1,000 | $1,057.80 | $3.57 | 0.70% | $6.94 | 1.36% |
Hypothetical | ||||||
Investor Class | $1,000 | $1,023.80 | $1.00 | 0.20% | $4.31 | 0.86% |
Institutional Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $3.31 | 0.66% |
A Class | $1,000 | $1,022.56 | $2.26 | 0.45% | $5.56 | 1.11% |
C Class | $1,000 | $1,018.84 | $6.01 | 1.20% | $9.30 | 1.86% |
R Class | $1,000 | $1,021.32 | $3.51 | 0.70% | $6.81 | 1.36% |
(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 181, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. The fees and expenses of the underlying American Century Investments funds in which the fund invests are not included in the class’s annualized expense ratio. |
(2) | Effective expenses reflect the sum of expenses borne directly by the class plus the fund's pro rata share of the weighted average expense ratio of the underlying funds in which it invests. The effective annualized expense ratio combines the class's annualized expense ratio and the annualized weighted average expense ratio of the underlying funds. The annualized weighted average expense ratio of the underlying funds for the one-half year period reflects the actual expense ratio of each underlying fund from its most recent shareholder report, annualized and weighted for the fund's relative average investment therein during the period. |
(3) | Other expenses, which include directors' fees and expenses, did not exceed 0.005%. |
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Beginning Account Value 2/1/14 | Ending Account Value 7/31/14 | Expenses Paid During Period(1)2/1/14 – 7/31/14 | Annualized Expense Ratio(1) | Effective Expenses Paid During Period(2)2/1/14 – 7/31/14 | Effective Annualized Expense Ratio(2) | |
One Choice 2040 Portfolio | ||||||
Actual | ||||||
Investor Class | $1,000 | $1,064.60 | $1.02 | 0.20% | $4.61 | 0.90% |
Institutional Class | $1,000 | $1,065.40 | $0.00 | 0.00%(3) | $3.58 | 0.70% |
A Class | $1,000 | $1,062.90 | $2.30 | 0.45% | $5.88 | 1.15% |
C Class | $1,000 | $1,059.60 | $6.13 | 1.20% | $9.70 | 1.90% |
R Class | $1,000 | $1,062.10 | $3.58 | 0.70% | $7.16 | 1.40% |
Hypothetical | ||||||
Investor Class | $1,000 | $1,023.80 | $1.00 | 0.20% | $4.51 | 0.90% |
Institutional Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $3.51 | 0.70% |
A Class | $1,000 | $1,022.56 | $2.26 | 0.45% | $5.76 | 1.15% |
C Class | $1,000 | $1,018.84 | $6.01 | 1.20% | $9.49 | 1.90% |
R Class | $1,000 | $1,021.32 | $3.51 | 0.70% | $7.00 | 1.40% |
One Choice 2045 Portfolio | ||||||
Actual | ||||||
Investor Class | $1,000 | $1,069.20 | $1.03 | 0.20% | $4.77 | 0.93% |
Institutional Class | $1,000 | $1,070.50 | $0.00 | 0.00%(3) | $3.75 | 0.73% |
A Class | $1,000 | $1,067.90 | $2.31 | 0.45% | $6.05 | 1.18% |
C Class | $1,000 | $1,063.90 | $6.14 | 1.20% | $9.88 | 1.93% |
R Class | $1,000 | $1,066.60 | $3.59 | 0.70% | $7.33 | 1.43% |
Hypothetical | ||||||
Investor Class | $1,000 | $1,023.80 | $1.00 | 0.20% | $4.66 | 0.93% |
Institutional Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $3.66 | 0.73% |
A Class | $1,000 | $1,022.56 | $2.26 | 0.45% | $5.91 | 1.18% |
C Class | $1,000 | $1,018.84 | $6.01 | 1.20% | $9.64 | 1.93% |
R Class | $1,000 | $1,021.32 | $3.51 | 0.70% | $7.15 | 1.43% |
(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 181, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. The fees and expenses of the underlying American Century Investments funds in which the fund invests are not included in the class’s annualized expense ratio. |
(2) | Effective expenses reflect the sum of expenses borne directly by the class plus the fund's pro rata share of the weighted average expense ratio of the underlying funds in which it invests. The effective annualized expense ratio combines the class's annualized expense ratio and the annualized weighted average expense ratio of the underlying funds. The annualized weighted average expense ratio of the underlying funds for the one-half year period reflects the actual expense ratio of each underlying fund from its most recent shareholder report, annualized and weighted for the fund's relative average investment therein during the period. |
(3) | Other expenses, which include directors' fees and expenses, did not exceed 0.005%. |
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Beginning Account Value 2/1/14 | Ending Account Value 7/31/14 | Expenses Paid During Period(1)2/1/14 – 7/31/14 | Annualized Expense Ratio(1) | Effective Expenses Paid During Period(2)2/1/14 – 7/31/14 | Effective Annualized Expense Ratio(2) | |
One Choice 2050 Portfolio | ||||||
Actual | ||||||
Investor Class | $1,000 | $1,071.70 | $1.03 | 0.20% | $4.88 | 0.95% |
Institutional Class | $1,000 | $1,072.50 | $0.00 | 0.00%(3) | $3.85 | 0.75% |
A Class | $1,000 | $1,070.10 | $2.31 | 0.45% | $6.16 | 1.20% |
C Class | $1,000 | $1,065.80 | $6.15 | 1.20% | $9.99 | 1.95% |
R Class | $1,000 | $1,068.40 | $3.59 | 0.70% | $7.44 | 1.45% |
Hypothetical | ||||||
Investor Class | $1,000 | $1,023.80 | $1.00 | 0.20% | $4.76 | 0.95% |
Institutional Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $3.76 | 0.75% |
A Class | $1,000 | $1,022.56 | $2.26 | 0.45% | $6.01 | 1.20% |
C Class | $1,000 | $1,018.84 | $6.01 | 1.20% | $9.74 | 1.95% |
R Class | $1,000 | $1,021.32 | $3.51 | 0.70% | $7.25 | 1.45% |
One Choice 2055 Portfolio | ||||||
Actual | ||||||
Investor Class | $1,000 | $1,073.10 | $1.03 | 0.20% | $4.88 | 0.95% |
Institutional Class | $1,000 | $1,073.90 | $0.00 | 0.00%(3) | $3.86 | 0.75% |
A Class | $1,000 | $1,071.50 | $2.31 | 0.45% | $6.16 | 1.20% |
C Class | $1,000 | $1,067.40 | $6.15 | 1.20% | $10.00 | 1.95% |
R Class | $1,000 | $1,070.70 | $3.59 | 0.70% | $7.44 | 1.45% |
Hypothetical | ||||||
Investor Class | $1,000 | $1,023.80 | $1.00 | 0.20% | $4.76 | 0.95% |
Institutional Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $3.76 | 0.75% |
A Class | $1,000 | $1,022.56 | $2.26 | 0.45% | $6.01 | 1.20% |
C Class | $1,000 | $1,018.84 | $6.01 | 1.20% | $9.74 | 1.95% |
R Class | $1,000 | $1,021.32 | $3.51 | 0.70% | $7.25 | 1.45% |
(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 181, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. The fees and expenses of the underlying American Century Investments funds in which the fund invests are not included in the class’s annualized expense ratio. |
(2) | Effective expenses reflect the sum of expenses borne directly by the class plus the fund's pro rata share of the weighted average expense ratio of the underlying funds in which it invests. The effective annualized expense ratio combines the class's annualized expense ratio and the annualized weighted average expense ratio of the underlying funds. The annualized weighted average expense ratio of the underlying funds for the one-half year period reflects the actual expense ratio of each underlying fund from its most recent shareholder report, annualized and weighted for the fund's relative average investment therein during the period. |
(3) | Other expenses, which include directors' fees and expenses, did not exceed 0.005%. |
34
Schedules of Investments |
JULY 31, 2014
One Choice In Retirement Portfolio
Shares | Value | |||
MUTUAL FUNDS(1) — 100.0% | ||||
DOMESTIC EQUITY FUNDS — 39.5% | ||||
NT Core Equity Plus Fund Institutional Class | 1,213,496 | $ | 18,748,506 | |
NT Equity Growth Fund Institutional Class | 4,813,364 | 61,996,124 | ||
NT Growth Fund Institutional Class | 2,509,783 | 40,407,511 | ||
NT Heritage Fund Institutional Class | 1,218,332 | 15,558,098 | ||
NT Large Company Value Fund Institutional Class | 5,428,536 | 68,182,408 | ||
NT Mid Cap Value Fund Institutional Class | 1,915,333 | 24,995,101 | ||
NT Small Company Fund Institutional Class | 1,189,684 | 12,384,609 | ||
Real Estate Fund Institutional Class | 233,018 | 6,333,427 | ||
248,605,784 | ||||
DOMESTIC FIXED INCOME FUNDS — 38.4% | ||||
High-Yield Fund Institutional Class | 3,915,106 | 24,038,749 | ||
Inflation-Adjusted Bond Fund Institutional Class | 793,500 | 9,514,071 | ||
NT Diversified Bond Fund Institutional Class | 15,613,415 | 168,937,152 | ||
Short Duration Inflation Protection Bond Fund Institutional Class | 3,731,363 | 38,843,486 | ||
241,333,458 | ||||
MONEY MARKET FUNDS — 10.1% | ||||
Premium Money Market Fund Investor Class | 63,596,470 | 63,596,470 | ||
INTERNATIONAL FIXED INCOME FUNDS — 7.0% | ||||
International Bond Fund Institutional Class | 3,092,797 | 44,288,846 | ||
INTERNATIONAL EQUITY FUNDS — 5.0% | ||||
NT International Growth Fund Institutional Class | 2,685,956 | 31,157,092 | ||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $526,749,023) | 628,981,650 | |||
OTHER ASSETS AND LIABILITIES† | (10,440) | |||
TOTAL NET ASSETS — 100.0% | $ | 628,971,210 | ||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
35
JULY 31, 2014
One Choice 2015 Portfolio
Shares | Value | |||
MUTUAL FUNDS(1) — 100.0% | ||||
DOMESTIC EQUITY FUNDS — 40.0% | ||||
NT Core Equity Plus Fund Institutional Class | 2,452,489 | $ | 37,890,953 | |
NT Equity Growth Fund Institutional Class | 9,786,027 | 126,044,031 | ||
NT Growth Fund Institutional Class | 5,182,404 | 83,436,708 | ||
NT Heritage Fund Institutional Class | 2,597,496 | 33,170,019 | ||
NT Large Company Value Fund Institutional Class | 11,022,770 | 138,445,986 | ||
NT Mid Cap Value Fund Institutional Class | 4,011,275 | 52,347,142 | ||
NT Small Company Fund Institutional Class | 2,409,401 | 25,081,867 | ||
Real Estate Fund Institutional Class | 482,226 | 13,106,890 | ||
509,523,596 | ||||
DOMESTIC FIXED INCOME FUNDS — 38.1% | ||||
High-Yield Fund Institutional Class | 7,813,003 | 47,971,835 | ||
Inflation-Adjusted Bond Fund Institutional Class | 1,775,376 | 21,286,754 | ||
NT Diversified Bond Fund Institutional Class | 31,470,590 | 340,511,788 | ||
Short Duration Inflation Protection Bond Fund Institutional Class | 7,261,777 | 75,595,100 | ||
485,365,477 | ||||
MONEY MARKET FUNDS — 9.9% | ||||
Premium Money Market Fund Investor Class | 125,381,873 | 125,381,873 | ||
INTERNATIONAL FIXED INCOME FUNDS — 6.9% | ||||
International Bond Fund Institutional Class | 6,149,740 | 88,064,271 | ||
INTERNATIONAL EQUITY FUNDS — 5.1% | ||||
NT Emerging Markets Fund Institutional Class | 155,639 | 1,715,137 | ||
NT International Growth Fund Institutional Class | 5,456,991 | 63,301,099 | ||
65,016,236 | ||||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $1,045,470,654) | 1,273,351,453 | |||
OTHER ASSETS AND LIABILITIES† | (378) | |||
TOTAL NET ASSETS — 100.0% | $ | 1,273,351,075 | ||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
36
JULY 31, 2014
One Choice 2020 Portfolio
Shares | Value | |||
MUTUAL FUNDS(1) — 100.0% | ||||
DOMESTIC EQUITY FUNDS — 43.2% | ||||
NT Core Equity Plus Fund Institutional Class | 2,600,485 | $ | 40,177,487 | |
NT Equity Growth Fund Institutional Class | 9,947,037 | 128,117,838 | ||
NT Growth Fund Institutional Class | 6,522,353 | 105,009,877 | ||
NT Heritage Fund Institutional Class | 3,797,847 | 48,498,511 | ||
NT Large Company Value Fund Institutional Class | 11,904,247 | 149,517,346 | ||
NT Mid Cap Value Fund Institutional Class | 5,021,335 | 65,528,416 | ||
NT Small Company Fund Institutional Class | 2,542,431 | 26,466,705 | ||
Real Estate Fund Institutional Class | 637,599 | 17,329,947 | ||
580,646,127 | ||||
DOMESTIC FIXED INCOME FUNDS — 36.6% | ||||
High-Yield Fund Institutional Class | 8,004,822 | 49,149,604 | ||
Inflation-Adjusted Bond Fund Institutional Class | 3,371,806 | 40,427,949 | ||
NT Diversified Bond Fund Institutional Class | 31,904,039 | 345,201,698 | ||
Short Duration Inflation Protection Bond Fund Institutional Class | 5,582,518 | 58,114,015 | ||
492,893,266 | ||||
MONEY MARKET FUNDS — 7.3% | ||||
Premium Money Market Fund Investor Class | 98,236,472 | 98,236,472 | ||
INTERNATIONAL EQUITY FUNDS — 7.0% | ||||
NT Emerging Markets Fund Institutional Class | 1,388,264 | 15,298,669 | ||
NT International Growth Fund Institutional Class | 6,775,178 | 78,592,061 | ||
93,890,730 | ||||
INTERNATIONAL FIXED INCOME FUNDS — 5.9% | ||||
International Bond Fund Institutional Class | 5,543,361 | 79,380,924 | ||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $1,158,579,902) | 1,345,047,519 | |||
OTHER ASSETS AND LIABILITIES† | 901 | |||
TOTAL NET ASSETS — 100.0% | $ | 1,345,048,420 | ||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
37
JULY 31, 2014
One Choice 2025 Portfolio
Shares | Value | |||
MUTUAL FUNDS(1) — 100.0% | ||||
DOMESTIC EQUITY FUNDS — 46.3% | ||||
NT Core Equity Plus Fund Institutional Class | 4,193,413 | $ | 64,788,224 | |
NT Equity Growth Fund Institutional Class | 15,425,935 | 198,686,047 | ||
NT Growth Fund Institutional Class | 11,990,464 | 193,046,477 | ||
NT Heritage Fund Institutional Class | 7,579,590 | 96,791,367 | ||
NT Large Company Value Fund Institutional Class | 19,426,434 | 243,996,009 | ||
NT Mid Cap Value Fund Institutional Class | 9,109,325 | 118,876,688 | ||
NT Small Company Fund Institutional Class | 4,876,213 | 50,761,373 | ||
Real Estate Fund Institutional Class | 1,228,233 | 33,383,373 | ||
1,000,329,558 | ||||
DOMESTIC FIXED INCOME FUNDS — 34.9% | ||||
High-Yield Fund Institutional Class | 12,133,810 | 74,501,593 | ||
Inflation-Adjusted Bond Fund Institutional Class | 7,451,041 | 89,337,982 | ||
NT Diversified Bond Fund Institutional Class | 49,022,955 | 530,428,369 | ||
Short Duration Inflation Protection Bond Fund Institutional Class | 5,765,177 | 60,015,491 | ||
754,283,435 | ||||
INTERNATIONAL EQUITY FUNDS — 9.1% | ||||
NT Emerging Markets Fund Institutional Class | 4,420,816 | 48,717,391 | ||
NT International Growth Fund Institutional Class | 12,710,272 | 147,439,152 | ||
196,156,543 | ||||
MONEY MARKET FUNDS — 5.0% | ||||
Premium Money Market Fund Investor Class | 108,837,240 | 108,837,240 | ||
INTERNATIONAL FIXED INCOME FUNDS — 4.7% | ||||
International Bond Fund Institutional Class | 7,171,406 | 102,694,541 | ||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $1,770,626,656) | 2,162,301,317 | |||
OTHER ASSETS AND LIABILITIES† | (18,684) | |||
TOTAL NET ASSETS — 100.0% | $ | 2,162,282,633 | ||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
38
JULY 31, 2014
One Choice 2030 Portfolio
Shares | Value | |||
MUTUAL FUNDS(1) — 100.0% | ||||
DOMESTIC EQUITY FUNDS — 50.1% | ||||
NT Core Equity Plus Fund Institutional Class | 2,766,348 | $ | 42,740,078 | |
NT Equity Growth Fund Institutional Class | 9,449,775 | 121,713,108 | ||
NT Growth Fund Institutional Class | 8,797,057 | 141,632,611 | ||
NT Heritage Fund Institutional Class | 5,165,353 | 65,961,559 | ||
NT Large Company Value Fund Institutional Class | 12,454,108 | 156,423,602 | ||
NT Mid Cap Value Fund Institutional Class | 5,330,268 | 69,560,002 | ||
NT Small Company Fund Institutional Class | 4,235,695 | 44,093,587 | ||
Real Estate Fund Institutional Class | 875,558 | 23,797,679 | ||
665,922,226 | ||||
DOMESTIC FIXED INCOME FUNDS — 31.5% | ||||
High-Yield Fund Institutional Class | 6,698,172 | 41,126,774 | ||
Inflation-Adjusted Bond Fund Institutional Class | 5,515,805 | 66,134,501 | ||
NT Diversified Bond Fund Institutional Class | 27,085,248 | 293,062,384 | ||
Short Duration Inflation Protection Bond Fund Institutional Class | 1,700,300 | 17,700,128 | ||
418,023,787 | ||||
INTERNATIONAL EQUITY FUNDS — 11.1% | ||||
NT Emerging Markets Fund Institutional Class | 3,328,115 | 36,675,822 | ||
NT International Growth Fund Institutional Class | 9,509,165 | 110,306,314 | ||
146,982,136 | ||||
MONEY MARKET FUNDS — 5.0% | ||||
Premium Money Market Fund Investor Class | 67,117,954 | 67,117,954 | ||
INTERNATIONAL FIXED INCOME FUNDS — 2.3% | ||||
International Bond Fund Institutional Class | 2,091,234 | 29,946,471 | ||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $1,133,427,281) | 1,327,992,574 | |||
OTHER ASSETS AND LIABILITIES† | 2,791 | |||
TOTAL NET ASSETS — 100.0% | $ | 1,327,995,365 | ||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
39
JULY 31, 2014
One Choice 2035 Portfolio
Shares | Value | |||
MUTUAL FUNDS(1) — 100.0% | ||||
DOMESTIC EQUITY FUNDS — 54.6% | ||||
NT Core Equity Plus Fund Institutional Class | 3,543,379 | $ | 54,745,212 | |
NT Equity Growth Fund Institutional Class | 12,241,435 | 157,669,676 | ||
NT Growth Fund Institutional Class | 13,169,512 | 212,029,145 | ||
NT Heritage Fund Institutional Class | 7,079,114 | 90,400,282 | ||
NT Large Company Value Fund Institutional Class | 16,878,694 | 211,996,402 | ||
NT Mid Cap Value Fund Institutional Class | 6,966,475 | 90,912,502 | ||
NT Small Company Fund Institutional Class | 6,791,938 | 70,704,075 | ||
Real Estate Fund Institutional Class | 1,264,099 | 34,358,220 | ||
922,815,514 | ||||
DOMESTIC FIXED INCOME FUNDS — 27.8% | ||||
High-Yield Fund Institutional Class | 7,551,019 | 46,363,256 | ||
Inflation-Adjusted Bond Fund Institutional Class | 7,712,940 | 92,478,146 | ||
NT Diversified Bond Fund Institutional Class | 30,484,166 | 329,838,678 | ||
Short Duration Inflation Protection Bond Fund Institutional Class | 120,151 | 1,250,774 | ||
469,930,854 | ||||
INTERNATIONAL EQUITY FUNDS — 12.8% | ||||
NT Emerging Markets Fund Institutional Class | 5,167,044 | 56,940,822 | ||
NT International Growth Fund Institutional Class | 13,789,169 | 159,954,360 | ||
216,895,182 | ||||
MONEY MARKET FUNDS — 4.8% | ||||
Premium Money Market Fund Investor Class | 81,257,635 | 81,257,635 | ||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $1,374,016,512) | 1,690,899,185 | |||
OTHER ASSETS AND LIABILITIES† | 2,760 | |||
TOTAL NET ASSETS — 100.0% | $ | 1,690,901,945 | ||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
40
JULY 31, 2014
One Choice 2040 Portfolio
Shares | Value | |||
MUTUAL FUNDS(1) — 100.0% | ||||
DOMESTIC EQUITY FUNDS — 59.7% | ||||
NT Core Equity Plus Fund Institutional Class | 2,177,561 | $ | 33,643,317 | |
NT Equity Growth Fund Institutional Class | 7,546,938 | 97,204,560 | ||
NT Growth Fund Institutional Class | 8,114,074 | 130,636,594 | ||
NT Heritage Fund Institutional Class | 4,793,190 | 61,209,041 | ||
NT Large Company Value Fund Institutional Class | 10,385,422 | 130,440,902 | ||
NT Mid Cap Value Fund Institutional Class | 4,716,832 | 61,554,660 | ||
NT Small Company Fund Institutional Class | 3,804,158 | 39,601,289 | ||
Real Estate Fund Institutional Class | 811,805 | 22,064,852 | ||
576,355,215 | ||||
DOMESTIC FIXED INCOME FUNDS — 23.9% | ||||
High-Yield Fund Institutional Class | 3,711,399 | 22,787,989 | ||
Inflation-Adjusted Bond Fund Institutional Class | 3,834,679 | 45,977,800 | ||
NT Diversified Bond Fund Institutional Class | 14,951,828 | 161,778,774 | ||
230,544,563 | ||||
INTERNATIONAL EQUITY FUNDS — 14.1% | ||||
NT Emerging Markets Fund Institutional Class | 3,712,570 | 40,912,527 | ||
NT International Growth Fund Institutional Class | 8,178,820 | 94,874,313 | ||
135,786,840 | ||||
MONEY MARKET FUNDS — 2.3% | ||||
Premium Money Market Fund Investor Class | 21,824,390 | 21,824,390 | ||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $819,022,707) | 964,511,008 | |||
OTHER ASSETS AND LIABILITIES† | (7,483) | |||
TOTAL NET ASSETS — 100.0% | $ | 964,503,525 | ||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
41
JULY 31, 2014
One Choice 2045 Portfolio
Shares | Value | |||
MUTUAL FUNDS(1) — 100.0% | ||||
DOMESTIC EQUITY FUNDS — 64.4% | ||||
NT Core Equity Plus Fund Institutional Class | 3,414,121 | $ | 52,748,164 | |
NT Equity Growth Fund Institutional Class | 9,623,672 | 123,952,889 | ||
NT Growth Fund Institutional Class | 10,827,142 | 174,316,985 | ||
NT Heritage Fund Institutional Class | 6,825,704 | 87,164,243 | ||
NT Large Company Value Fund Institutional Class | 13,886,347 | 174,412,519 | ||
NT Mid Cap Value Fund Institutional Class | 6,717,549 | 87,664,011 | ||
NT Small Company Fund Institutional Class | 4,589,500 | 47,776,691 | ||
Real Estate Fund Institutional Class | 1,124,914 | 30,575,161 | ||
778,610,663 | ||||
DOMESTIC FIXED INCOME FUNDS — 20.1% | ||||
High-Yield Fund Institutional Class | 3,928,175 | 24,118,993 | ||
Inflation-Adjusted Bond Fund Institutional Class | 4,044,872 | 48,498,016 | ||
NT Diversified Bond Fund Institutional Class | 15,738,325 | 170,288,678 | ||
242,905,687 | ||||
INTERNATIONAL EQUITY FUNDS — 15.5% | ||||
NT Emerging Markets Fund Institutional Class | 5,739,596 | 63,250,343 | ||
NT International Growth Fund Institutional Class | 10,673,578 | 123,813,510 | ||
187,063,853 | ||||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $982,075,826) | 1,208,580,203 | |||
OTHER ASSETS AND LIABILITIES† | 2,224 | |||
TOTAL NET ASSETS — 100.0% | $ | 1,208,582,427 | ||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
42
JULY 31, 2014
One Choice 2050 Portfolio
Shares | Value | |||
MUTUAL FUNDS(1) — 100.0% | ||||
DOMESTIC EQUITY FUNDS — 66.2% | ||||
NT Core Equity Plus Fund Institutional Class | 1,540,382 | $ | 23,798,903 | |
NT Equity Growth Fund Institutional Class | 4,206,684 | 54,182,084 | ||
NT Growth Fund Institutional Class | 4,851,752 | 78,113,200 | ||
NT Heritage Fund Institutional Class | 3,011,252 | 38,453,694 | ||
NT Large Company Value Fund Institutional Class | 6,324,547 | 79,436,310 | ||
NT Mid Cap Value Fund Institutional Class | 2,963,750 | 38,676,937 | ||
NT Small Company Fund Institutional Class | 2,342,284 | 24,383,176 | ||
Real Estate Fund Institutional Class | 546,919 | 14,865,267 | ||
351,909,571 | ||||
DOMESTIC FIXED INCOME FUNDS — 17.7% | ||||
High-Yield Fund Institutional Class | 1,511,372 | 9,279,822 | ||
Inflation-Adjusted Bond Fund Institutional Class | 1,555,033 | 18,644,842 | ||
NT Diversified Bond Fund Institutional Class | 6,147,462 | 66,515,538 | ||
94,440,202 | ||||
INTERNATIONAL EQUITY FUNDS — 16.1% | ||||
NT Emerging Markets Fund Institutional Class | 2,957,629 | 32,593,074 | ||
NT International Growth Fund Institutional Class | 4,566,921 | 52,976,278 | ||
85,569,352 | ||||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $455,315,061) | 531,919,125 | |||
OTHER ASSETS AND LIABILITIES† | 1,771 | |||
TOTAL NET ASSETS — 100.0% | $ | 531,920,896 | ||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
43
JULY 31, 2014
One Choice 2055 Portfolio
Shares | Value | |||
MUTUAL FUNDS(1) — 100.0% | ||||
DOMESTIC EQUITY FUNDS — 68.8% | ||||
NT Core Equity Plus Fund Institutional Class | 356,424 | $ | 5,506,746 | |
NT Equity Growth Fund Institutional Class | 1,020,537 | 13,144,513 | ||
NT Growth Fund Institutional Class | 1,157,919 | 18,642,499 | ||
NT Heritage Fund Institutional Class | 719,770 | 9,191,468 | ||
NT Large Company Value Fund Institutional Class | 1,508,307 | 18,944,338 | ||
NT Mid Cap Value Fund Institutional Class | 705,967 | 9,212,874 | ||
NT Small Company Fund Institutional Class | 584,136 | 6,080,855 | ||
Real Estate Fund Institutional Class | 135,426 | 3,680,880 | ||
84,404,173 | ||||
INTERNATIONAL EQUITY FUNDS — 16.0% | ||||
NT Emerging Markets Fund Institutional Class | 721,889 | 7,955,213 | ||
NT International Growth Fund Institutional Class | 1,005,142 | 11,659,646 | ||
19,614,859 | ||||
DOMESTIC FIXED INCOME FUNDS — 15.2% | ||||
High-Yield Fund Institutional Class | 302,406 | 1,856,771 | ||
Inflation-Adjusted Bond Fund Institutional Class | 311,837 | 3,738,921 | ||
NT Diversified Bond Fund Institutional Class | 1,211,019 | 13,103,228 | ||
18,698,920 | ||||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $112,871,068) | 122,717,952 | |||
OTHER ASSETS AND LIABILITIES† | 200 | |||
TOTAL NET ASSETS — 100.0% | $ | 122,718,152 | ||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
44
Statements of Assets and Liabilities |
JULY 31, 2014 | |||||||||
One Choice In Retirement Portfolio | One Choice 2015 Portfolio | One Choice 2020 Portfolio | |||||||
Assets | |||||||||
Investment securities in affiliates, at value (cost of $526,749,023, $1,045,470,654 and $1,158,579,902, respectively) | $ | 628,981,650 | $ | 1,273,351,453 | $ | 1,345,047,519 | |||
Cash | 156,197 | 297,833 | 310,601 | ||||||
Receivable for investments sold | 159,717 | 4,956,829 | 1,055,751 | ||||||
Receivable for capital shares sold | 1,375,225 | 939,758 | 1,755,487 | ||||||
Distributions receivable from affiliates | 398,150 | 805,087 | 810,330 | ||||||
631,070,939 | 1,280,350,960 | 1,348,979,688 | |||||||
Liabilities | |||||||||
Payable for investments purchased | 398,351 | 805,492 | 810,740 | ||||||
Payable for capital shares redeemed | 1,540,016 | 5,886,719 | 2,799,621 | ||||||
Accrued administrative fees | 86,157 | 180,536 | 179,261 | ||||||
Distribution and service fees payable | 75,205 | 127,138 | 141,646 | ||||||
2,099,729 | 6,999,885 | 3,931,268 | |||||||
Net Assets | $ | 628,971,210 | $ | 1,273,351,075 | $ | 1,345,048,420 | |||
Net Assets Consist of: | |||||||||
Capital (par value and paid-in surplus) | $ | 530,996,537 | $ | 1,038,998,604 | $ | 1,135,035,136 | |||
Undistributed net investment income | — | 4,556,235 | 6,731,904 | ||||||
Accumulated undistributed net realized gain (loss) | (4,257,954 | ) | 1,915,437 | 16,813,763 | |||||
Net unrealized appreciation | 102,232,627 | 227,880,799 | 186,467,617 | ||||||
$ | 628,971,210 | $ | 1,273,351,075 | $ | 1,345,048,420 | ||||
Fund/Class | Net Assets | Shares Outstanding | Net Asset Value Per Share | |||
One Choice In Retirement Portfolio | ||||||
Investor Class, $0.01 Par Value | $255,133,476 | 19,595,970 | $13.02 | |||
Institutional Class, $0.01 Par Value | $130,406,018 | 10,011,429 | $13.03 | |||
A Class, $0.01 Par Value | $139,911,161 | 10,748,583 | $13.02* | |||
C Class, $0.01 Par Value | $2,574,141 | 198,075 | $13.00 | |||
R Class, $0.01 Par Value | $100,946,414 | 7,762,656 | $13.00 | |||
One Choice 2015 Portfolio | ||||||
Investor Class, $0.01 Par Value | $598,572,446 | 43,330,259 | $13.81 | |||
Institutional Class, $0.01 Par Value | $233,982,686 | 16,906,410 | $13.84 | |||
A Class, $0.01 Par Value | $308,074,770 | 22,335,462 | $13.79* | |||
C Class, $0.01 Par Value | $4,763,670 | 346,102 | $13.76 | |||
R Class, $0.01 Par Value | $127,957,503 | 9,288,640 | $13.78 | |||
One Choice 2020 Portfolio | ||||||
Investor Class, $0.01 Par Value | $549,087,239 | 44,796,227 | $12.26 | |||
Institutional Class, $0.01 Par Value | $310,324,530 | 25,296,849 | $12.27 | |||
A Class, $0.01 Par Value | $334,140,624 | 27,311,830 | $12.23* | |||
C Class, $0.01 Par Value | $10,742,879 | 879,352 | $12.22 | |||
R Class, $0.01 Par Value | $140,753,148 | 11,520,017 | $12.22 | |||
*Maximum offering price $13.81, $14.63 and $12.98 (net asset value divided by 0.9425) for One Choice In Retirement Portfolio, One Choice 2015 Portfolio and One Choice 2020 Portfolio, respectively.
See Notes to Financial Statements.
45
JULY 31, 2014 | |||||||||
One Choice 2025 Portfolio | One Choice 2030 Portfolio | One Choice 2035 Portfolio | |||||||
Assets | |||||||||
Investment securities in affiliates, at value (cost of $1,770,626,656, $1,133,427,281 and $1,374,016,512, respectively) | $ | 2,162,301,317 | $ | 1,327,992,574 | $ | 1,690,899,185 | |||
Cash | 495,034 | 302,078 | 398,400 | ||||||
Receivable for investments sold | 4,164,998 | 1,019,130 | 3,947,825 | ||||||
Receivable for capital shares sold | 2,064,563 | 1,219,859 | 1,326,384 | ||||||
Distributions receivable from affiliates | 1,241,855 | 684,509 | 774,475 | ||||||
2,170,267,767 | 1,331,218,150 | 1,697,346,269 | |||||||
Liabilities | |||||||||
Payable for investments purchased | 1,242,485 | 684,857 | 774,867 | ||||||
Payable for capital shares redeemed | 6,231,154 | 2,225,796 | 5,257,785 | ||||||
Accrued administrative fees | 300,443 | 174,413 | 236,836 | ||||||
Distribution and service fees payable | 211,052 | 137,719 | 174,836 | ||||||
7,985,134 | 3,222,785 | 6,444,324 | |||||||
Net Assets | $ | 2,162,282,633 | $ | 1,327,995,365 | $ | 1,690,901,945 | |||
Net Assets Consist of: | |||||||||
Capital (par value and paid-in surplus) | $ | 1,748,393,477 | $ | 1,104,318,629 | $ | 1,345,556,235 | |||
Undistributed net investment income | 10,452,379 | 6,134,571 | 7,420,515 | ||||||
Undistributed net realized gain | 11,762,116 | 22,976,872 | 21,042,522 | ||||||
Net unrealized appreciation | 391,674,661 | 194,565,293 | 316,882,673 | ||||||
$ | 2,162,282,633 | $ | 1,327,995,365 | $ | 1,690,901,945 | ||||
Fund/Class | Net Assets | Shares Outstanding | Net Asset Value Per Share | |
One Choice 2025 Portfolio | ||||
Investor Class, $0.01 Par Value | $992,506,738 | 68,129,524 | $14.57 | |
Institutional Class, $0.01 Par Value | $424,419,617 | 29,108,456 | $14.58 | |
A Class, $0.01 Par Value | $528,142,173 | 36,303,727 | $14.55* | |
C Class, $0.01 Par Value | $7,147,165 | 492,282 | $14.52 | |
R Class, $0.01 Par Value | $210,066,940 | 14,462,586 | $14.52 | |
One Choice 2030 Portfolio | ||||
Investor Class, $0.01 Par Value | $512,356,435 | 41,192,378 | $12.44 | |
Institutional Class, $0.01 Par Value | $320,834,117 | 25,780,460 | $12.44 | |
A Class, $0.01 Par Value | $355,604,086 | 28,660,536 | $12.41* | |
C Class, $0.01 Par Value | $4,449,291 | 359,047 | $12.39 | |
R Class, $0.01 Par Value | $134,751,436 | 10,871,682 | $12.39 | |
One Choice 2035 Portfolio | ||||
Investor Class, $0.01 Par Value | $755,938,285 | 48,466,409 | $15.60 | |
Institutional Class, $0.01 Par Value | $323,042,706 | 20,676,273 | $15.62 | |
A Class, $0.01 Par Value | $425,197,817 | 27,295,955 | $15.58* | |
C Class, $0.01 Par Value | $4,586,422 | 295,258 | $15.53 | |
R Class, $0.01 Par Value | $182,136,715 | 11,707,085 | $15.56 | |
*Maximum offering price $15.44, $13.17 and $16.53 (net asset value divided by 0.9425) for One Choice 2025 Portfolio, One Choice 2030 Portfolio and One Choice 2035 Portfolio, respectively.
See Notes to Financial Statements.
46
JULY 31, 2014 | |||||||||
One Choice 2040 Portfolio | One Choice 2045 Portfolio | One Choice 2050 Portfolio | |||||||
Assets | |||||||||
Investment securities in affiliates, at value (cost of $819,022,707, $982,075,826 and $455,315,061, respectively) | $ | 964,511,008 | $ | 1,208,580,203 | $ | 531,919,125 | |||
Cash | 210,303 | 265,709 | 115,189 | ||||||
Receivable for investments sold | 863,544 | 3,880,654 | 271,737 | ||||||
Receivable for capital shares sold | 1,081,813 | 1,889,765 | 1,195,239 | ||||||
Distributions receivable from affiliates | 378,920 | 400,066 | 154,810 | ||||||
967,045,588 | 1,215,016,397 | 533,656,100 | |||||||
Liabilities | |||||||||
Payable for investments purchased | 379,113 | 400,269 | 154,890 | ||||||
Payable for capital shares redeemed | 1,945,631 | 5,759,064 | 1,461,272 | ||||||
Accrued administrative fees | 124,849 | 160,512 | 68,530 | ||||||
Distribution and service fees payable | 92,470 | 114,125 | 50,512 | ||||||
2,542,063 | 6,433,970 | 1,735,204 | |||||||
Net Assets | $ | 964,503,525 | $ | 1,208,582,427 | $ | 531,920,896 | |||
Net Assets Consist of: | |||||||||
Capital (par value and paid-in surplus) | $ | 793,609,476 | $ | 960,358,266 | $ | 441,596,969 | |||
Undistributed net investment income | 3,987,565 | 4,615,117 | 1,852,526 | ||||||
Undistributed net realized gain | 21,418,183 | 17,104,667 | 11,867,337 | ||||||
Net unrealized appreciation | 145,488,301 | 226,504,377 | 76,604,064 | ||||||
$ | 964,503,525 | $ | 1,208,582,427 | $ | 531,920,896 | ||||
Fund/Class | Net Assets | Shares Outstanding | Net Asset Value Per Share | |||
One Choice 2040 Portfolio | ||||||
Investor Class, $0.01 Par Value | $392,198,648 | 30,494,264 | $12.86 | |||
Institutional Class, $0.01 Par Value | $243,924,187 | 18,948,468 | $12.87 | |||
A Class, $0.01 Par Value | $230,764,319 | 17,969,921 | $12.84* | |||
C Class, $0.01 Par Value | $2,939,038 | 229,533 | $12.80 | |||
R Class, $0.01 Par Value | $94,677,333 | 7,384,814 | $12.82 | |||
One Choice 2045 Portfolio | ||||||
Investor Class, $0.01 Par Value | $523,827,752 | 32,304,787 | $16.22 | |||
Institutional Class, $0.01 Par Value | $281,771,665 | 17,350,207 | $16.24 | |||
A Class, $0.01 Par Value | $283,598,234 | 17,520,055 | $16.19* | |||
C Class, $0.01 Par Value | $1,992,846 | 123,378 | $16.15 | |||
R Class, $0.01 Par Value | $117,391,930 | 7,258,734 | $16.17 | |||
One Choice 2050 Portfolio | ||||||
Investor Class, $0.01 Par Value | $214,823,214 | 16,723,247 | $12.85 | |||
Institutional Class, $0.01 Par Value | $135,634,803 | 10,540,301 | $12.87 | |||
A Class, $0.01 Par Value | $131,709,209 | 10,268,986 | $12.83* | |||
C Class, $0.01 Par Value | $1,982,548 | 154,866 | $12.80 | |||
R Class, $0.01 Par Value | $47,771,122 | 3,728,413 | $12.81 | |||
*Maximum offering price $13.62, $17.18 and $13.61 (net asset value divided by 0.9425) for One Choice 2040 Portfolio, One Choice 2045 Portfolio and One Choice 2050 Portfolio, respectively.
See Notes to Financial Statements.
47
JULY 31, 2014 | |||
One Choice 2055 Portfolio | |||
Assets | |||
Investment securities in affiliates, at value (cost of $112,871,068) | $ | 122,717,952 | |
Cash | 25,811 | ||
Receivable for capital shares sold | 703,549 | ||
Distributions receivable from affiliates | 30,254 | ||
123,477,566 | |||
Liabilities | |||
Payable for investments purchased | 184,732 | ||
Payable for capital shares redeemed | 547,992 | ||
Accrued administrative fees | 13,520 | ||
Distribution and service fees payable | 13,170 | ||
759,414 | |||
Net Assets | $ | 122,718,152 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 110,484,060 | |
Undistributed net investment income | 362,203 | ||
Undistributed net realized gain | 2,025,005 | ||
Net unrealized appreciation | 9,846,884 | ||
$ | 122,718,152 | ||
Fund/Class | Net Assets | Shares Outstanding | Net Asset Value Per Share | |
One Choice 2055 Portfolio | ||||
Investor Class, $0.01 Par Value | $33,356,765 | 2,524,053 | $13.22 | |
Institutional Class, $0.01 Par Value | $43,147,439 | 3,262,178 | $13.23 | |
A Class, $0.01 Par Value | $31,786,508 | 2,410,020 | $13.19* | |
C Class, $0.01 Par Value | $428,103 | 32,581 | $13.14 | |
R Class, $0.01 Par Value | $13,999,337 | 1,062,164 | $13.18 | |
*Maximum offering price $13.99 (net asset value divided by 0.9425) for One Choice 2055 Portfolio.
See Notes to Financial Statements.
48
Statements of Operations |
YEAR ENDED JULY 31, 2014 | |||||||||
One Choice In Retirement Portfolio | One Choice 2015 Portfolio | One Choice 2020 Portfolio | |||||||
Investment Income (Loss) | |||||||||
Income from Affiliates: | |||||||||
Income distributions from underlying funds | $ | 12,923,753 | $ | 28,739,349 | $ | 28,296,660 | |||
Expenses: | |||||||||
Administrative fees: | |||||||||
Investor Class | 478,558 | 1,168,439 | 997,174 | ||||||
A Class | 258,721 | 620,126 | 621,587 | ||||||
C Class | 4,236 | 9,042 | 16,891 | ||||||
R Class | 158,555 | 248,377 | 244,879 | ||||||
Distribution and service fees: | |||||||||
A Class | 323,401 | 775,158 | 776,984 | ||||||
C Class | 21,180 | 45,208 | 84,455 | ||||||
R Class | 396,387 | 620,941 | 612,198 | ||||||
Directors’ fees and expenses | 11,011 | 23,077 | 28,418 | ||||||
1,652,049 | 3,510,368 | 3,382,586 | |||||||
Net investment income (loss) | 11,271,704 | 25,228,981 | 24,914,074 | ||||||
Net Realized and Unrealized Gain (Loss) on Affiliates | |||||||||
Net realized gain (loss) on: | |||||||||
Sale of investments in underlying funds | (989,215 | ) | 6,321,811 | (3,911,036 | ) | ||||
Capital gain distributions received from underlying funds | 10,113,921 | 23,195,446 | 24,439,742 | ||||||
9,124,706 | 29,517,257 | 20,528,706 | |||||||
Change in net unrealized appreciation (depreciation) on investments in underlying funds | 22,567,777 | 42,723,180 | 54,975,502 | ||||||
Net realized and unrealized gain (loss) on affiliates | 31,692,483 | 72,240,437 | 75,504,208 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 42,964,187 | $ | 97,469,418 | $ | 100,418,282 | |||
See Notes to Financial Statements.
49
YEAR ENDED JULY 31, 2014 | |||||||||
One Choice 2025 Portfolio | One Choice 2030 Portfolio | One Choice 2035 Portfolio | |||||||
Investment Income (Loss) | |||||||||
Income from Affiliates: | |||||||||
Income distributions from underlying funds | $ | 48,428,982 | $ | 28,493,772 | $ | 38,638,300 | |||
Expenses: | |||||||||
Administrative fees: | |||||||||
Investor Class | 1,839,913 | 906,497 | 1,364,987 | ||||||
A Class | 1,012,928 | 634,589 | 795,653 | ||||||
C Class | 13,481 | 8,048 | 8,212 | ||||||
R Class | 383,712 | 235,824 | 329,203 | ||||||
Distribution and service fees: | |||||||||
A Class | 1,266,160 | 793,236 | 994,567 | ||||||
C Class | 67,404 | 40,243 | 41,062 | ||||||
R Class | 959,280 | 589,560 | 823,007 | ||||||
Directors’ fees and expenses | 41,051 | 28,234 | 33,869 | ||||||
5,583,929 | 3,236,231 | 4,390,560 | |||||||
Net investment income (loss) | 42,845,053 | 25,257,541 | 34,247,740 | ||||||
Net Realized and Unrealized Gain (Loss) on Affiliates | |||||||||
Net realized gain (loss) on: | |||||||||
Sale of investments in underlying funds | (2,468,458 | ) | (2,316,714 | ) | (218,085 | ) | |||
Capital gain distributions received from underlying funds | 45,264,157 | 28,866,555 | 41,943,021 | ||||||
42,795,699 | 26,549,841 | 41,724,936 | |||||||
Change in net unrealized appreciation (depreciation) on investments in underlying funds | 92,519,980 | 56,111,490 | 77,422,009 | ||||||
Net realized and unrealized gain (loss) on affiliates | 135,315,679 | 82,661,331 | 119,146,945 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 178,160,732 | $ | 107,918,872 | $ | 153,394,685 | |||
See Notes to Financial Statements.
50
YEAR ENDED JULY 31, 2014 | |||||||||
One Choice 2040 Portfolio | One Choice 2045 Portfolio | One Choice 2050 Portfolio | |||||||
Investment Income (Loss) | |||||||||
Income from Affiliates: | |||||||||
Income distributions from underlying funds | $ | 21,389,758 | $ | 27,379,651 | $ | 11,245,158 | |||
Expenses: | |||||||||
Administrative fees: | |||||||||
Investor Class | 678,622 | 909,080 | 346,479 | ||||||
A Class | 418,197 | 524,276 | 225,468 | ||||||
C Class | 5,472 | 3,153 | 4,152 | ||||||
R Class | 154,316 | 208,002 | 80,372 | ||||||
Distribution and service fees: | |||||||||
A Class | 522,746 | 655,344 | 281,835 | ||||||
C Class | 27,361 | 15,764 | 20,761 | ||||||
R Class | 385,790 | 520,004 | 200,930 | ||||||
Directors’ fees and expenses | 21,275 | 24,632 | 11,885 | ||||||
2,213,779 | 2,860,255 | 1,171,882 | |||||||
Net investment income (loss) | 19,175,979 | 24,519,396 | 10,073,276 | ||||||
Net Realized and Unrealized Gain (Loss) on Affiliates | |||||||||
Net realized gain (loss) on: | |||||||||
Sale of investments in underlying funds | (583,426 | ) | (534,685 | ) | (447,144 | ) | |||
Capital gain distributions received from underlying funds | 24,383,725 | 32,614,543 | 13,528,319 | ||||||
23,800,299 | 32,079,858 | 13,081,175 | |||||||
Change in net unrealized appreciation (depreciation) on investments in underlying funds | 44,741,982 | 62,485,120 | 26,753,615 | ||||||
Net realized and unrealized gain (loss) on affiliates | 68,542,281 | 94,564,978 | 39,834,790 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 87,718,260 | $ | 119,084,374 | $ | 49,908,066 | |||
See Notes to Financial Statements.
51
YEAR ENDED JULY 31, 2014 | |||
One Choice 2055 Portfolio | |||
Investment Income (Loss) | |||
Income from Affiliates: | |||
Income distributions from underlying funds | $ | 2,022,729 | |
Expenses: | |||
Administrative fees: | |||
Investor Class | 49,256 | ||
A Class | 45,901 | ||
C Class | 639 | ||
R Class | 20,967 | ||
Distribution and service fees: | |||
A Class | 57,376 | ||
C Class | 3,192 | ||
R Class | 52,418 | ||
Directors’ fees and expenses | 2,593 | ||
232,342 | |||
Net investment income (loss) | 1,790,387 | ||
Net Realized and Unrealized Gain (Loss) on Affiliates | |||
Net realized gain (loss) on: | |||
Sale of investments in underlying funds | (194,424 | ) | |
Capital gain distributions received from underlying funds | 2,388,192 | ||
2,193,768 | |||
Change in net unrealized appreciation (depreciation) on investments in underlying funds | 5,249,341 | ||
Net realized and unrealized gain (loss) on affiliates | 7,443,109 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 9,233,496 | |
See Notes to Financial Statements.
52
Statements of Changes in Net Assets |
YEARS ENDED JULY 31, 2014 AND JULY 31, 2013 | ||||||||||||
One Choice In Retirement Portfolio | One Choice 2015 Portfolio | |||||||||||
Increase (Decrease) in Net Assets | July 31, 2014 | July 31, 2013 | July 31, 2014 | July 31, 2013 | ||||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 11,271,704 | $ | 7,374,397 | $ | 25,228,981 | $ | 18,034,112 | ||||
Net realized gain (loss) | 9,124,706 | 4,824,436 | 29,517,257 | 12,905,443 | ||||||||
Change in net unrealized appreciation (depreciation) | 22,567,777 | 27,408,423 | 42,723,180 | 70,416,811 | ||||||||
Net increase (decrease) in net assets resulting from operations | 42,964,187 | 39,607,256 | 97,469,418 | 101,356,366 | ||||||||
Distributions to Shareholders | ||||||||||||
From net investment income: | ||||||||||||
Investor Class | (4,974,928 | ) | (3,099,580 | ) | (11,864,962 | ) | (9,289,549 | ) | ||||
Institutional Class | (2,595,030 | ) | (1,989,971 | ) | (4,628,627 | ) | (3,341,324 | ) | ||||
A Class | (2,369,527 | ) | (1,650,115 | ) | (5,632,664 | ) | (4,369,628 | ) | ||||
C Class | (27,803 | ) | (8,534 | ) | (48,307 | ) | (29,334 | ) | ||||
R Class | (1,221,450 | ) | (653,313 | ) | (1,904,462 | ) | (1,437,662 | ) | ||||
From net realized gains: | ||||||||||||
Investor Class | (2,288,831 | ) | (1,725,796 | ) | (7,552,373 | ) | (3,680,481 | ) | ||||
Institutional Class | (1,087,473 | ) | (1,035,833 | ) | (2,680,690 | ) | (1,200,865 | ) | ||||
A Class | (1,247,654 | ) | (995,765 | ) | (4,092,483 | ) | (1,986,010 | ) | ||||
C Class | (20,733 | ) | (10,008 | ) | (60,926 | ) | (23,852 | ) | ||||
R Class | (721,985 | ) | (492,170 | ) | (1,610,907 | ) | (765,762 | ) | ||||
Decrease in net assets from distributions | (16,555,414 | ) | (11,661,085 | ) | (40,076,401 | ) | (26,124,467 | ) | ||||
Capital Share Transactions | ||||||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 111,785,577 | 115,335,129 | 75,497,092 | 185,205,306 | ||||||||
Net increase (decrease) in net assets | 138,194,350 | 143,281,300 | 132,890,109 | 260,437,205 | ||||||||
Net Assets | ||||||||||||
Beginning of period | 490,776,860 | 347,495,560 | 1,140,460,966 | 880,023,761 | ||||||||
End of period | $ | 628,971,210 | $ | 490,776,860 | $ | 1,273,351,075 | $ | 1,140,460,966 | ||||
Undistributed net investment income | — | $ | 190,595 | $ | 4,556,235 | $ | 5,579,393 | |||||
See Notes to Financial Statements.
53
YEARS ENDED JULY 31, 2014 AND JULY 31, 2013 | ||||||||||||
One Choice 2020 Portfolio | One Choice 2025 Portfolio | |||||||||||
Increase (Decrease) in Net Assets | July 31, 2014 | July 31, 2013 | July 31, 2014 | July 31, 2013 | ||||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 24,914,074 | $ | 13,183,034 | $ | 42,845,053 | $ | 25,242,294 | ||||
Net realized gain (loss) | 20,528,706 | 8,146,091 | 42,795,699 | 17,868,187 | ||||||||
Change in net unrealized appreciation (depreciation) | 54,975,502 | 61,389,442 | 92,519,980 | 134,227,626 | ||||||||
Net increase (decrease) in net assets resulting from operations | 100,418,282 | 82,718,567 | 178,160,732 | 177,338,107 | ||||||||
Distributions to Shareholders | ||||||||||||
From net investment income: | ||||||||||||
Investor Class | (9,819,267 | ) | (5,192,741 | ) | (19,077,703 | ) | (11,938,501 | ) | ||||
Institutional Class | (5,571,254 | ) | (3,426,595 | ) | (8,115,728 | ) | (4,901,730 | ) | ||||
A Class | (5,275,285 | ) | (3,109,162 | ) | (9,556,205 | ) | (6,051,832 | ) | ||||
C Class | (78,383 | ) | (26,318 | ) | (72,908 | ) | (40,813 | ) | ||||
R Class | (1,788,806 | ) | (964,118 | ) | (3,061,379 | ) | (1,950,749 | ) | ||||
From net realized gains: | ||||||||||||
Investor Class | (3,573,259 | ) | (2,479,231 | ) | (8,772,450 | ) | (4,233,193 | ) | ||||
Institutional Class | (1,840,144 | ) | (1,474,446 | ) | (3,406,146 | ) | (1,568,185 | ) | ||||
A Class | (2,197,614 | ) | (1,719,772 | ) | (4,992,585 | ) | (2,480,785 | ) | ||||
C Class | (57,872 | ) | (27,759 | ) | (64,317 | ) | (31,460 | ) | ||||
R Class | (871,830 | ) | (633,751 | ) | (1,850,724 | ) | (947,538 | ) | ||||
Decrease in net assets from distributions | (31,073,714 | ) | (19,053,893 | ) | (58,970,145 | ) | (34,144,786 | ) | ||||
Capital Share Transactions | ||||||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 301,710,872 | 348,035,745 | 298,336,311 | 405,289,600 | ||||||||
Net increase (decrease) in net assets | 371,055,440 | 411,700,419 | 417,526,898 | 548,482,921 | ||||||||
Net Assets | ||||||||||||
Beginning of period | 973,992,980 | 562,292,561 | 1,744,755,735 | 1,196,272,814 | ||||||||
End of period | $ | 1,345,048,420 | $ | 973,992,980 | $ | 2,162,282,633 | $ | 1,744,755,735 | ||||
Undistributed net investment income | $ | 6,731,904 | $ | 4,447,250 | $ | 10,452,379 | $ | 7,982,585 | ||||
See Notes to Financial Statements.
54
YEARS ENDED JULY 31, 2014 AND JULY 31, 2013 | ||||||||||||
One Choice 2030 Portfolio | One Choice 2035 Portfolio | |||||||||||
Increase (Decrease) in Net Assets | July 31, 2014 | July 31, 2013 | July 31, 2014 | July 31, 2013 | ||||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 25,257,541 | $ | 11,198,502 | $ | 34,247,740 | $ | 16,496,243 | ||||
Net realized gain (loss) | 26,549,841 | 8,255,947 | 41,724,936 | 13,970,044 | ||||||||
Change in net unrealized appreciation (depreciation) | 56,111,490 | 74,524,209 | 77,422,009 | 130,181,079 | ||||||||
Net increase (decrease) in net assets resulting from operations | 107,918,872 | 93,978,658 | 153,394,685 | 160,647,366 | ||||||||
Distributions to Shareholders | ||||||||||||
From net investment income: | ||||||||||||
Investor Class | (9,330,847 | ) | (3,947,509 | ) | (14,670,259 | ) | (7,251,291 | ) | ||||
Institutional Class | (5,817,356 | ) | (2,876,603 | ) | (6,523,160 | ) | (3,384,856 | ) | ||||
A Class | (5,667,872 | ) | (2,719,375 | ) | (7,837,370 | ) | (3,840,071 | ) | ||||
C Class | (42,914 | ) | (15,058 | ) | (46,280 | ) | (15,225 | ) | ||||
R Class | (1,893,572 | ) | (951,818 | ) | (2,755,398 | ) | (1,346,130 | ) | ||||
From net realized gains: | ||||||||||||
Investor Class | (3,426,979 | ) | (1,975,916 | ) | (6,508,455 | ) | (3,542,839 | ) | ||||
Institutional Class | (1,946,819 | ) | (1,286,938 | ) | (2,649,867 | ) | (1,475,970 | ) | ||||
A Class | (2,370,992 | ) | (1,599,427 | ) | (3,929,247 | ) | (2,207,333 | ) | ||||
C Class | (30,719 | ) | (18,623 | ) | (38,067 | ) | (18,642 | ) | ||||
R Class | (919,508 | ) | (678,597 | ) | (1,587,929 | ) | (940,223 | ) | ||||
Decrease in net assets from distributions | (31,447,578 | ) | (16,069,864 | ) | (46,546,032 | ) | (24,022,580 | ) | ||||
Capital Share Transactions | ||||||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 343,921,171 | 323,289,308 | 273,030,474 | 319,740,799 | ||||||||
Net increase (decrease) in net assets | 420,392,465 | 401,198,102 | 379,879,127 | 456,365,585 | ||||||||
Net Assets | ||||||||||||
Beginning of period | 907,602,900 | 506,404,798 | 1,311,022,818 | 854,657,233 | ||||||||
End of period | $ | 1,327,995,365 | $ | 907,602,900 | $ | 1,690,901,945 | $ | 1,311,022,818 | ||||
Undistributed net investment income | $ | 6,134,571 | $ | 3,691,430 | $ | 7,420,515 | $ | 5,005,242 | ||||
See Notes to Financial Statements.
55
YEARS ENDED JULY 31, 2014 AND JULY 31, 2013 | ||||||||||||
One Choice 2040 Portfolio | One Choice 2045 Portfolio | |||||||||||
Increase (Decrease) in Net Assets | July 31, 2014 | July 31, 2013 | July 31, 2014 | July 31, 2013 | ||||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 19,175,979 | $ | 7,214,677 | $ | 24,519,396 | $ | 10,650,297 | ||||
Net realized gain (loss) | 23,800,299 | 5,960,738 | 32,079,858 | 9,716,255 | ||||||||
Change in net unrealized appreciation (depreciation) | 44,741,982 | 64,517,805 | 62,485,120 | 101,630,509 | ||||||||
Net increase (decrease) in net assets resulting from operations | 87,718,260 | 77,693,220 | 119,084,374 | 121,997,061 | ||||||||
Distributions to Shareholders | ||||||||||||
From net investment income: | ||||||||||||
Investor Class | (7,497,230 | ) | (2,367,781 | ) | (10,137,498 | ) | (4,114,710 | ) | ||||
Institutional Class | (4,691,093 | ) | (2,042,725 | ) | (5,633,312 | ) | (2,639,178 | ) | ||||
A Class | (4,005,418 | ) | (1,534,267 | ) | (5,408,579 | ) | (2,255,071 | ) | ||||
C Class | (32,701 | ) | (6,481 | ) | (18,397 | ) | (5,979 | ) | ||||
R Class | (1,266,851 | ) | (453,379 | ) | (1,836,633 | ) | (771,653 | ) | ||||
From net realized gains: | ||||||||||||
Investor Class | (2,650,070 | ) | (1,215,141 | ) | (4,326,674 | ) | (1,865,928 | ) | ||||
Institutional Class | (1,518,621 | ) | (925,592 | ) | (2,208,806 | ) | (1,061,612 | ) | ||||
A Class | (1,599,221 | ) | (944,512 | ) | (2,594,509 | ) | (1,215,722 | ) | ||||
C Class | (21,371 | ) | (9,941 | ) | (14,063 | ) | (7,436 | ) | ||||
R Class | (581,086 | ) | (348,689 | ) | (1,006,054 | ) | (512,841 | ) | ||||
Decrease in net assets from distributions | (23,863,662 | ) | (9,848,508 | ) | (33,184,525 | ) | (14,450,130 | ) | ||||
Capital Share Transactions | ||||||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 266,700,967 | 241,056,994 | 246,605,584 | 219,097,607 | ||||||||
Net increase (decrease) in net assets | 330,555,565 | 308,901,706 | 332,505,433 | 326,644,538 | ||||||||
Net Assets | ||||||||||||
Beginning of period | 633,947,960 | 325,046,254 | 876,076,994 | 549,432,456 | ||||||||
End of period | $ | 964,503,525 | $ | 633,947,960 | $ | 1,208,582,427 | $ | 876,076,994 | ||||
Undistributed net investment income | $ | 3,987,565 | $ | 2,304,879 | $ | 4,615,117 | $ | 3,130,140 | ||||
See Notes to Financial Statements.
56
YEARS ENDED JULY 31, 2014 AND JULY 31, 2013 | ||||||||||||
One Choice 2050 Portfolio | One Choice 2055 Portfolio | |||||||||||
Increase (Decrease) in Net Assets | July 31, 2014 | July 31, 2013 | July 31, 2014 | July 31, 2013 | ||||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 10,073,276 | $ | 3,620,127 | $ | 1,790,387 | $ | 342,930 | ||||
Net realized gain (loss) | 13,081,175 | 3,217,165 | 2,193,768 | 288,977 | ||||||||
Change in net unrealized appreciation (depreciation) | 26,753,615 | 37,345,827 | 5,249,341 | 4,205,515 | ||||||||
Net increase (decrease) in net assets resulting from operations | 49,908,066 | 44,183,119 | 9,233,496 | 4,837,422 | ||||||||
Distributions to Shareholders | ||||||||||||
From net investment income: | ||||||||||||
Investor Class | (3,796,951 | ) | (987,428 | ) | (527,130 | ) | (82,911 | ) | ||||
Institutional Class | (2,661,091 | ) | (1,159,504 | ) | (459,579 | ) | (82,101 | ) | ||||
A Class | (2,176,551 | ) | (738,212 | ) | (404,300 | ) | (68,247 | ) | ||||
C Class | (28,338 | ) | (5,144 | ) | (3,431 | ) | (394 | ) | ||||
R Class | (687,986 | ) | (197,591 | ) | (162,114 | ) | (17,415 | ) | ||||
From net realized gains: | ||||||||||||
Investor Class | (1,370,673 | ) | (524,327 | ) | (107,031 | ) | (15,397 | ) | ||||
Institutional Class | (881,545 | ) | (539,850 | ) | (85,305 | ) | (13,250 | ) | ||||
A Class | (885,230 | ) | (475,028 | ) | (93,019 | ) | (15,618 | ) | ||||
C Class | (18,564 | ) | (9,121 | ) | (1,313 | ) | (296 | ) | ||||
R Class | (320,242 | ) | (161,483 | ) | (43,026 | ) | (5,185 | ) | ||||
Decrease in net assets from distributions | (12,827,171 | ) | (4,797,688 | ) | (1,886,248 | ) | (300,814 | ) | ||||
Capital Share Transactions | ||||||||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 157,882,377 | 128,200,280 | 68,124,691 | 30,402,144 | ||||||||
Net increase (decrease) in net assets | 194,963,272 | 167,585,711 | 75,471,939 | 34,938,752 | ||||||||
Net Assets | ||||||||||||
Beginning of period | 336,957,624 | 169,371,913 | 47,246,213 | 12,307,461 | ||||||||
End of period | $ | 531,920,896 | $ | 336,957,624 | $ | 122,718,152 | $ | 47,246,213 | ||||
Undistributed net investment income | $ | 1,852,526 | $ | 1,130,167 | $ | 362,203 | $ | 128,370 | ||||
See Notes to Financial Statements.
57
Notes to Financial Statements |
JULY 31, 2014
1. Organization
American Century Asset Allocation Portfolios, 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. One Choice In Retirement Portfolio, One Choice 2015 Portfolio, One Choice 2020 Portfolio, One Choice 2025 Portfolio, One Choice 2030 Portfolio, One Choice 2035 Portfolio, One Choice 2040 Portfolio, One Choice 2045 Portfolio, One Choice 2050 Portfolio and One Choice 2055 Portfolio (collectively, the funds) are ten funds in a series issued by the corporation. The funds operate as “funds of funds,” meaning substantially all of the funds’ assets will be invested in other American Century Investments mutual funds (the underlying funds). Each fund’s assets are allocated among underlying funds that represent major asset classes, including equity securities (stocks), fixed-income securities (bonds) and cash-equivalent instruments (money markets). The underlying funds do not invest in securities issued by companies assigned the Global Industry Classification Standard for the tobacco industry. The funds are diversified as defined under the 1940 Act. The funds will assume the risks associated with their underlying funds. Additional information and attributes of each underlying fund are available at americancentury.com. The investment objective of One Choice In Retirement Portfolio is to seek current income. Capital appreciation is a secondary objective. The investment objective of each of the nine target date One Choice Portfolios is to seek the highest total return consistent with its asset mix. When a fund reaches its most conservative planned target asset allocation, which is expected to occur on approximately November 30 of the year before the target date, its target allocation will become fixed and will match that of One Choice In Retirement Portfolio.
The funds offer the Investor Class, the Institutional Class, the A Class, the C Class and the 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. The share classes differ principally in their respective sales charges and distribution and shareholder servicing expenses and arrangements. The Institutional Class is made available to institutional shareholders or through financial intermediaries whose clients do not require the same level of shareholder and administrative services as shareholders of other classes. As a result, the Institutional Class is not charged an administrative fee.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the funds in preparation of their financial statements. The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which 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 funds determine the fair value of their investments and compute their net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the funds' investment valuation process and to provide methodologies for the oversight of the funds' pricing function. Investments in the underlying funds are valued at their reported net asset value.
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 - Income and capital gain distributions, if any, from the underlying funds are recorded as of the ex-dividend date. Long-term capital gain distributions, if any, from the underlying funds are a component of net realized gain (loss).
Expenses - The expenses included in the accompanying financial statements reflect the expenses of each fund and do not include any expenses associated with the underlying funds.
Income Tax Status - It is each 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
58
of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The funds file U.S. federal, state, local and non-U.S. tax returns as applicable. The funds' 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 each 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 funds are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders - Distributions from net investment income, if any, are generally declared and paid quarterly for One Choice In Retirement Portfolio. Distributions from net investment income, if any, are generally declared and paid annually for the nine target date One Choice Portfolios. Distributions from net realized gains, if any, are generally declared and paid annually for all funds.
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 funds. In addition, in the normal course of business, the funds enter into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, American Century Investment Management, Inc. (ACIM), the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. ACIM serves as the investment advisor for the underlying funds.
Administrative Fees - The corporation has entered into an agreement with ACIM, under which ACIM provides the funds with shareholder services in exchange for an administrative fee (the fee). The fee is computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The rate of the fee for the Investor Class, A Class, C Class and R Class is 0.20%. There is no administrative fee for the Institutional Class.
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. These fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the year ended July 31, 2014 are detailed in the Statements of Operations.
Directors' Fees and Expenses - The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the funds. The directors receive detailed information about the funds and their investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. Fees and expenses incurred in conjunction with the directors during the year ended July 31, 2014 are detailed in the Statements of Operations. The funds' officers do not receive compensation from the funds.
Acquired Fund Fees and Expenses - Each fund will indirectly realize its pro rata share of the fees and expenses of the underlying funds in which it invests. These fees and expenses are already reflected in the valuation of the underlying funds.
59
4. Investment Transactions
Investment transactions for the year ended July 31, 2014 were as follows:
One Choice In Retirement Portfolio | One Choice 2015 Portfolio | One Choice 2020 Portfolio | One Choice 2025 Portfolio | One Choice 2030 Portfolio | |||||||||||
Purchases | $ | 205,773,665 | $ | 268,550,892 | $ | 435,355,270 | $ | 474,044,508 | $ | 431,602,938 | |||||
Sales | $ | 89,132,029 | $ | 184,705,227 | $ | 115,354,268 | $ | 146,546,570 | $ | 65,007,028 | |||||
One Choice 2035 Portfolio | One Choice 2040 Portfolio | One Choice 2045 Portfolio | One Choice 2050 Portfolio | One Choice 2055 Portfolio | |||||||||||
Purchases | $ | 375,003,666 | $ | 315,855,582 | $ | 312,806,897 | $ | 187,464,768 | $ | 76,789,762 | |||||
Sales | $ | 72,354,620 | $ | 29,451,032 | $ | 42,256,801 | $ | 18,803,795 | $ | 6,372,937 | |||||
5. Capital Share Transactions
The corporation is authorized to issue 3,000,000,000 shares. Transactions in shares of the funds were as follows:
Year ended July 31, 2014 | Year ended July 31, 2013 | |||||||||
Shares | Amount | Shares | Amount | |||||||
One Choice In Retirement Portfolio | ||||||||||
Investor Class | ||||||||||
Sold | 9,344,734 | $ | 118,858,225 | 9,104,979 | $ | 109,509,113 | ||||
Issued in reinvestment of distributions | 565,559 | 7,164,226 | 402,927 | 4,752,126 | ||||||
Redeemed | (6,871,661 | ) | (87,661,948 | ) | (4,016,227 | ) | (48,370,149 | ) | ||
3,038,632 | 38,360,503 | 5,491,679 | 65,891,090 | |||||||
Institutional Class | ||||||||||
Sold | 4,962,217 | 63,382,965 | 4,006,712 | 48,127,535 | ||||||
Issued in reinvestment of distributions | 284,671 | 3,607,197 | 251,091 | 2,961,385 | ||||||
Redeemed | (3,631,594 | ) | (46,185,156 | ) | (2,299,547 | ) | (27,726,781 | ) | ||
1,615,294 | 20,805,006 | 1,958,256 | 23,362,139 | |||||||
A Class | ||||||||||
Sold | 5,457,025 | 69,464,024 | 5,632,291 | 67,793,197 | ||||||
Issued in reinvestment of distributions | 261,841 | 3,314,578 | 201,785 | 2,377,257 | ||||||
Redeemed | (4,599,854 | ) | (58,418,609 | ) | (5,262,131 | ) | (63,039,073 | ) | ||
1,119,012 | 14,359,993 | 571,945 | 7,131,381 | |||||||
C Class | ||||||||||
Sold | 128,031 | 1,619,511 | 42,885 | 520,670 | ||||||
Issued in reinvestment of distributions | 3,835 | 48,536 | 1,549 | 18,127 | ||||||
Redeemed | (44,116 | ) | (558,381 | ) | (3,873 | ) | (46,207 | ) | ||
87,750 | 1,109,666 | 40,561 | 492,590 | |||||||
R Class | ||||||||||
Sold | 4,619,094 | 58,836,138 | 2,901,444 | 34,900,267 | ||||||
Issued in reinvestment of distributions | 149,406 | 1,890,232 | 94,626 | 1,111,131 | ||||||
Redeemed | (1,853,280 | ) | (23,575,961 | ) | (1,457,432 | ) | (17,553,469 | ) | ||
2,915,220 | 37,150,409 | 1,538,638 | 18,457,929 | |||||||
Net increase (decrease) | 8,775,908 | $ | 111,785,577 | 9,601,079 | $ | 115,335,129 | ||||
60
Year ended July 31, 2014 | Year ended July 31, 2013 | |||||||||
Shares | Amount | Shares | Amount | |||||||
One Choice 2015 Portfolio | ||||||||||
Investor Class | ||||||||||
Sold | 11,555,601 | $ | 155,702,006 | 15,322,335 | $ | 194,889,612 | ||||
Issued in reinvestment of distributions | 1,441,377 | 19,184,736 | 1,036,518 | 12,728,497 | ||||||
Redeemed | (10,894,289 | ) | (147,214,612 | ) | (9,751,193 | ) | (124,494,749 | ) | ||
2,102,689 | 27,672,130 | 6,607,660 | 83,123,360 | |||||||
Institutional Class | ||||||||||
Sold | 7,306,344 | 98,597,454 | 6,388,534 | 81,394,033 | ||||||
Issued in reinvestment of distributions | 536,263 | 7,143,021 | 360,857 | 4,431,323 | ||||||
Redeemed | (4,787,681 | ) | (64,602,022 | ) | (3,084,274 | ) | (39,390,870 | ) | ||
3,054,926 | 41,138,453 | 3,665,117 | 46,434,486 | |||||||
A Class | ||||||||||
Sold | 7,692,536 | 103,742,196 | 9,725,821 | 123,392,375 | ||||||
Issued in reinvestment of distributions | 660,903 | 8,796,617 | 453,814 | 5,572,833 | ||||||
Redeemed | (8,451,016 | ) | (114,129,187 | ) | (7,541,660 | ) | (95,732,604 | ) | ||
(97,577 | ) | (1,590,374 | ) | 2,637,975 | 33,232,604 | |||||
C Class | ||||||||||
Sold | 104,821 | 1,408,696 | 237,757 | 3,012,748 | ||||||
Issued in reinvestment of distributions | 7,468 | 99,618 | 3,789 | 46,602 | ||||||
Redeemed | (70,911 | ) | (947,121 | ) | (110,740 | ) | (1,402,508 | ) | ||
41,378 | 561,193 | 130,806 | 1,656,842 | |||||||
R Class | ||||||||||
Sold | 3,670,256 | 49,243,647 | 4,686,538 | 59,353,954 | ||||||
Issued in reinvestment of distributions | 248,017 | 3,301,112 | 169,289 | 2,078,871 | ||||||
Redeemed | (3,329,884 | ) | (44,829,069 | ) | (3,196,908 | ) | (40,674,811 | ) | ||
588,389 | 7,715,690 | 1,658,919 | 20,758,014 | |||||||
Net increase (decrease) | 5,689,805 | $ | 75,497,092 | 14,700,477 | $ | 185,205,306 | ||||
61
Year ended July 31, 2014 | Year ended July 31, 2013 | |||||||||
Shares | Amount | Shares | Amount | |||||||
One Choice 2020 Portfolio | ||||||||||
Investor Class | ||||||||||
Sold | 21,043,779 | $ | 249,994,003 | 17,574,504 | $ | 195,282,525 | ||||
Issued in reinvestment of distributions | 1,134,503 | 13,375,788 | 715,865 | 7,659,751 | ||||||
Redeemed | (10,595,751 | ) | (127,015,531 | ) | (5,590,859 | ) | (62,630,333 | ) | ||
11,582,531 | 136,354,260 | 12,699,510 | 140,311,943 | |||||||
Institutional Class | ||||||||||
Sold | 12,653,625 | 151,264,000 | 11,495,580 | 127,961,001 | ||||||
Issued in reinvestment of distributions | 628,617 | 7,411,398 | 458,041 | 4,901,041 | ||||||
Redeemed | (6,267,991 | ) | (74,770,003 | ) | (3,050,956 | ) | (34,121,293 | ) | ||
7,014,251 | 83,905,395 | 8,902,665 | 98,740,749 | |||||||
A Class | ||||||||||
Sold | 9,817,108 | 116,375,892 | 12,392,613 | 137,405,595 | ||||||
Issued in reinvestment of distributions | 604,367 | 7,125,492 | 422,453 | 4,516,026 | ||||||
Redeemed | (6,509,238 | ) | (77,630,489 | ) | (6,406,289 | ) | (70,755,348 | ) | ||
3,912,237 | 45,870,895 | 6,408,777 | 71,166,273 | |||||||
C Class | ||||||||||
Sold | 478,240 | 5,663,540 | 379,741 | 4,240,608 | ||||||
Issued in reinvestment of distributions | 11,419 | 134,968 | 4,935 | 52,903 | ||||||
Redeemed | (141,207 | ) | (1,657,561 | ) | (70,974 | ) | (792,031 | ) | ||
348,452 | 4,140,947 | 313,702 | 3,501,480 | |||||||
R Class | ||||||||||
Sold | 5,622,646 | 66,724,197 | 5,327,703 | 59,083,880 | ||||||
Issued in reinvestment of distributions | 218,800 | 2,579,646 | 142,703 | 1,526,922 | ||||||
Redeemed | (3,193,423 | ) | (37,864,468 | ) | (2,368,069 | ) | (26,295,502 | ) | ||
2,648,023 | 31,439,375 | 3,102,337 | 34,315,300 | |||||||
Net increase (decrease) | 25,505,494 | $ | 301,710,872 | 31,426,991 | $ | 348,035,745 | ||||
62
Year ended July 31, 2014 | Year ended July 31, 2013 | |||||||||
Shares | Amount | Shares | Amount | |||||||
One Choice 2025 Portfolio | ||||||||||
Investor Class | ||||||||||
Sold | 19,149,017 | $ | 270,574,750 | 21,905,715 | $ | 286,727,700 | ||||
Issued in reinvestment of distributions | 1,963,505 | 27,489,062 | 1,263,062 | 15,889,240 | ||||||
Redeemed | (11,905,716 | ) | (168,899,498 | ) | (8,758,373 | ) | (115,212,720 | ) | ||
9,206,806 | 129,164,314 | 14,410,404 | 187,404,220 | |||||||
Institutional Class | ||||||||||
Sold | 12,189,454 | 172,967,274 | 10,084,144 | 131,596,068 | ||||||
Issued in reinvestment of distributions | 804,901 | 11,260,566 | 502,576 | 6,317,375 | ||||||
Redeemed | (5,602,048 | ) | (79,677,701 | ) | (3,443,704 | ) | (45,308,666 | ) | ||
7,392,307 | 104,550,139 | 7,143,016 | 92,604,777 | |||||||
A Class | ||||||||||
Sold | 11,840,877 | 167,296,312 | 14,889,032 | 194,367,220 | ||||||
Issued in reinvestment of distributions | 951,631 | 13,322,832 | 606,008 | 7,623,588 | ||||||
Redeemed | (10,101,771 | ) | (142,980,875 | ) | (8,180,957 | ) | (107,134,483 | ) | ||
2,690,737 | 37,638,269 | 7,314,083 | 94,856,325 | |||||||
C Class | ||||||||||
Sold | 110,203 | 1,557,112 | 231,924 | 3,020,371 | ||||||
Issued in reinvestment of distributions | 9,756 | 136,882 | 5,688 | 71,730 | ||||||
Redeemed | (79,808 | ) | (1,136,207 | ) | (67,347 | ) | (874,444 | ) | ||
40,151 | 557,787 | 170,265 | 2,217,657 | |||||||
R Class | ||||||||||
Sold | 5,637,303 | 79,620,796 | 5,671,348 | 74,035,499 | ||||||
Issued in reinvestment of distributions | 327,815 | 4,589,412 | 214,976 | 2,704,400 | ||||||
Redeemed | (4,099,280 | ) | (57,784,406 | ) | (3,716,508 | ) | (48,533,278 | ) | ||
1,865,838 | 26,425,802 | 2,169,816 | 28,206,621 | |||||||
Net increase (decrease) | 21,195,839 | $ | 298,336,311 | 31,207,584 | $ | 405,289,600 | ||||
63
Year ended July 31, 2014 | Year ended July 31, 2013 | |||||||||
Shares | Amount | Shares | Amount | |||||||
One Choice 2030 Portfolio | ||||||||||
Investor Class | ||||||||||
Sold | 20,426,845 | $ | 245,871,448 | 15,827,973 | $ | 174,401,934 | ||||
Issued in reinvestment of distributions | 1,066,114 | 12,740,058 | 561,198 | 5,909,411 | ||||||
Redeemed | (8,995,021 | ) | (109,551,889 | ) | (4,119,025 | ) | (45,821,607 | ) | ||
12,497,938 | 149,059,617 | 12,270,146 | 134,489,738 | |||||||
Institutional Class | ||||||||||
Sold | 12,448,367 | 150,487,344 | 10,414,918 | 114,569,213 | ||||||
Issued in reinvestment of distributions | 649,722 | 7,764,175 | 395,398 | 4,163,541 | ||||||
Redeemed | (4,749,313 | ) | (57,207,774 | ) | (2,437,496 | ) | (27,035,315 | ) | ||
8,348,776 | 101,043,745 | 8,372,820 | 91,697,439 | |||||||
A Class | ||||||||||
Sold | 11,037,047 | 132,555,936 | 12,761,092 | 139,840,717 | ||||||
Issued in reinvestment of distributions | 638,448 | 7,623,066 | 388,007 | 4,081,835 | ||||||
Redeemed | (5,832,605 | ) | (70,195,184 | ) | (6,726,595 | ) | (73,434,908 | ) | ||
5,842,890 | 69,983,818 | 6,422,504 | 70,487,644 | |||||||
C Class | ||||||||||
Sold | 147,541 | 1,775,111 | 163,316 | 1,803,792 | ||||||
Issued in reinvestment of distributions | 6,091 | 72,962 | 3,084 | 32,568 | ||||||
Redeemed | (89,873 | ) | (1,082,908 | ) | (24,919 | ) | (273,173 | ) | ||
63,759 | 765,165 | 141,481 | 1,563,187 | |||||||
R Class | ||||||||||
Sold | 5,417,624 | 65,180,130 | 4,728,567 | 51,824,638 | ||||||
Issued in reinvestment of distributions | 227,857 | 2,722,894 | 148,104 | 1,559,529 | ||||||
Redeemed | (3,748,744 | ) | (44,834,198 | ) | (2,581,244 | ) | (28,332,867 | ) | ||
1,896,737 | 23,068,826 | 2,295,427 | 25,051,300 | |||||||
Net increase (decrease) | 28,650,100 | $ | 343,921,171 | 29,502,378 | $ | 323,289,308 | ||||
64
Year ended July 31, 2014 | Year ended July 31, 2013 | |||||||||
Shares | Amount | Shares | Amount | |||||||
One Choice 2035 Portfolio | ||||||||||
Investor Class | ||||||||||
Sold | 15,419,113 | $ | 232,617,825 | 15,566,058 | $ | 212,886,566 | ||||
Issued in reinvestment of distributions | 1,399,130 | 20,958,959 | 818,633 | 10,650,420 | ||||||
Redeemed | (7,817,703 | ) | (118,549,367 | ) | (6,155,975 | ) | (84,525,108 | ) | ||
9,000,540 | 135,027,417 | 10,228,716 | 139,011,878 | |||||||
Institutional Class | ||||||||||
Sold | 8,121,478 | 122,982,998 | 7,425,796 | 101,284,900 | ||||||
Issued in reinvestment of distributions | 584,736 | 8,765,198 | 354,611 | 4,613,488 | ||||||
Redeemed | (4,217,689 | ) | (64,009,875 | ) | (2,358,336 | ) | (32,419,009 | ) | ||
4,488,525 | 67,738,321 | 5,422,071 | 73,479,379 | |||||||
A Class | ||||||||||
Sold | 9,699,553 | 146,439,953 | 10,699,576 | 145,683,369 | ||||||
Issued in reinvestment of distributions | 724,693 | 10,855,896 | 419,559 | 5,458,461 | ||||||
Redeemed | (7,722,319 | ) | (116,439,152 | ) | (5,238,011 | ) | (71,270,665 | ) | ||
2,701,927 | 40,856,697 | 5,881,124 | 79,871,165 | |||||||
C Class | ||||||||||
Sold | 82,321 | 1,235,451 | 154,242 | 2,080,840 | ||||||
Issued in reinvestment of distributions | 5,614 | 84,263 | 2,597 | 33,832 | ||||||
Redeemed | (39,674 | ) | (599,902 | ) | (19,292 | ) | (265,520 | ) | ||
48,261 | 719,812 | 137,547 | 1,849,152 | |||||||
R Class | ||||||||||
Sold | 4,642,119 | 69,941,532 | 4,406,484 | 59,941,209 | ||||||
Issued in reinvestment of distributions | 271,934 | 4,076,289 | 165,122 | 2,148,238 | ||||||
Redeemed | (3,007,224 | ) | (45,329,594 | ) | (2,689,127 | ) | (36,560,222 | ) | ||
1,906,829 | 28,688,227 | 1,882,479 | 25,529,225 | |||||||
Net increase (decrease) | 18,146,082 | $ | 273,030,474 | 23,551,937 | $ | 319,740,799 | ||||
65
Year ended July 31, 2014 | Year ended July 31, 2013 | |||||||||
Shares | Amount | Shares | Amount | |||||||
One Choice 2040 Portfolio | ||||||||||
Investor Class | ||||||||||
Sold | 16,128,053 | $ | 199,593,668 | 11,673,243 | $ | 129,271,529 | ||||
Issued in reinvestment of distributions | 822,511 | 10,141,566 | 340,253 | 3,579,466 | ||||||
Redeemed | (6,192,967 | ) | (77,605,817 | ) | (2,679,655 | ) | (30,048,104 | ) | ||
10,757,597 | 132,129,417 | 9,333,841 | 102,802,891 | |||||||
Institutional Class | ||||||||||
Sold | 8,529,888 | 106,206,558 | 8,092,206 | 89,366,596 | ||||||
Issued in reinvestment of distributions | 503,626 | 6,209,714 | 282,159 | 2,968,317 | ||||||
Redeemed | (3,291,797 | ) | (40,954,069 | ) | (1,963,315 | ) | (22,106,041 | ) | ||
5,741,717 | 71,462,203 | 6,411,050 | 70,228,872 | |||||||
A Class | ||||||||||
Sold | 6,395,153 | 79,076,614 | 8,111,665 | 89,513,559 | ||||||
Issued in reinvestment of distributions | 428,583 | 5,284,424 | 221,993 | 2,335,369 | ||||||
Redeemed | (3,704,038 | ) | (46,020,542 | ) | (4,215,706 | ) | (46,186,634 | ) | ||
3,119,698 | 38,340,496 | 4,117,952 | 45,662,294 | |||||||
C Class | ||||||||||
Sold | 104,517 | 1,268,123 | 129,859 | 1,422,687 | ||||||
Issued in reinvestment of distributions | 4,337 | 53,557 | 1,536 | 16,193 | ||||||
Redeemed | (52,725 | ) | (657,995 | ) | (12,412 | ) | (138,841 | ) | ||
56,129 | 663,685 | 118,983 | 1,300,039 | |||||||
R Class | ||||||||||
Sold | 3,939,129 | 49,045,510 | 3,177,705 | 35,123,744 | ||||||
Issued in reinvestment of distributions | 143,522 | 1,769,619 | 73,570 | 773,949 | ||||||
Redeemed | (2,164,678 | ) | (26,709,963 | ) | (1,337,393 | ) | (14,834,795 | ) | ||
1,917,973 | 24,105,166 | 1,913,882 | 21,062,898 | |||||||
Net increase (decrease) | 21,593,114 | $ | 266,700,967 | 21,895,708 | $ | 241,056,994 | ||||
66
Year ended July 31, 2014 | Year ended July 31, 2013 | |||||||||
Shares | Amount | Shares | Amount | |||||||
One Choice 2045 Portfolio | ||||||||||
Investor Class | ||||||||||
Sold | 12,757,406 | $ | 199,150,063 | 9,865,621 | $ | 136,859,572 | ||||
Issued in reinvestment of distributions | 920,996 | 14,293,859 | 447,874 | 5,876,112 | ||||||
Redeemed | (5,199,876 | ) | (81,631,937 | ) | (3,813,871 | ) | (53,371,988 | ) | ||
8,478,526 | 131,811,985 | 6,499,624 | 89,363,696 | |||||||
Institutional Class | ||||||||||
Sold | 6,832,555 | 107,208,682 | 5,830,139 | 80,927,927 | ||||||
Issued in reinvestment of distributions | 493,000 | 7,651,352 | 275,262 | 3,614,185 | ||||||
Redeemed | (3,130,252 | ) | (49,271,979 | ) | (2,039,715 | ) | (28,820,490 | ) | ||
4,195,303 | 65,588,055 | 4,065,686 | 55,721,622 | |||||||
A Class | ||||||||||
Sold | 6,789,524 | 106,051,418 | 7,207,169 | 99,695,460 | ||||||
Issued in reinvestment of distributions | 477,700 | 7,409,128 | 243,458 | 3,194,164 | ||||||
Redeemed | (5,261,700 | ) | (82,176,375 | ) | (3,419,440 | ) | (47,314,139 | ) | ||
2,005,524 | 31,284,171 | 4,031,187 | 55,575,485 | |||||||
C Class | ||||||||||
Sold | 54,678 | 854,187 | 57,351 | 788,393 | ||||||
Issued in reinvestment of distributions | 2,058 | 31,996 | 1,005 | 13,216 | ||||||
Redeemed | (15,472 | ) | (239,838 | ) | (25,755 | ) | (356,111 | ) | ||
41,264 | 646,345 | 32,601 | 445,498 | |||||||
R Class | ||||||||||
Sold | 3,021,482 | 47,239,450 | 2,800,637 | 38,731,448 | ||||||
Issued in reinvestment of distributions | 175,396 | 2,722,141 | 93,228 | 1,224,088 | ||||||
Redeemed | (2,106,163 | ) | (32,686,563 | ) | (1,583,628 | ) | (21,964,230 | ) | ||
1,090,715 | 17,275,028 | 1,310,237 | 17,991,306 | |||||||
Net increase (decrease) | 15,811,332 | $ | 246,605,584 | 15,939,335 | $ | 219,097,607 | ||||
67
Year ended July 31, 2014 | Year ended July 31, 2013 | |||||||||
Shares | Amount | Shares | Amount | |||||||
One Choice 2050 Portfolio | ||||||||||
Investor Class | ||||||||||
Sold | 9,404,702 | $ | 116,239,147 | 6,049,436 | $ | 66,148,608 | ||||
Issued in reinvestment of distributions | 420,182 | 5,164,040 | 146,269 | 1,509,492 | ||||||
Redeemed | (2,943,037 | ) | (36,769,630 | ) | (1,173,785 | ) | (12,929,650 | ) | ||
6,881,847 | 84,633,557 | 5,021,920 | 54,728,450 | |||||||
Institutional Class | ||||||||||
Sold | 4,866,275 | 60,431,530 | 4,643,778 | 50,574,652 | ||||||
Issued in reinvestment of distributions | 288,019 | 3,542,636 | 164,666 | 1,699,354 | ||||||
Redeemed | (2,710,942 | ) | (33,404,590 | ) | (1,594,792 | ) | (17,804,713 | ) | ||
2,443,352 | 30,569,576 | 3,213,652 | 34,469,293 | |||||||
A Class | ||||||||||
Sold | 4,631,989 | 57,192,282 | 4,242,585 | 46,157,215 | ||||||
Issued in reinvestment of distributions | 240,168 | 2,951,668 | 114,358 | 1,180,176 | ||||||
Redeemed | (2,347,231 | ) | (29,010,901 | ) | (2,087,647 | ) | (22,595,813 | ) | ||
2,524,926 | 31,133,049 | 2,269,296 | 24,741,578 | |||||||
C Class | ||||||||||
Sold | 62,496 | 752,682 | 129,920 | 1,411,412 | ||||||
Issued in reinvestment of distributions | 3,754 | 46,249 | 1,356 | 14,016 | ||||||
Redeemed | (60,393 | ) | (743,139 | ) | (35,017 | ) | (388,636 | ) | ||
5,857 | 55,792 | 96,259 | 1,036,792 | |||||||
R Class | ||||||||||
Sold | 2,018,802 | 24,925,113 | 1,771,563 | 19,322,122 | ||||||
Issued in reinvestment of distributions | 79,614 | 978,460 | 33,465 | 345,363 | ||||||
Redeemed | (1,171,991 | ) | (14,413,170 | ) | (588,663 | ) | (6,443,318 | ) | ||
926,425 | 11,490,403 | 1,216,365 | 13,224,167 | |||||||
Net increase (decrease) | 12,782,407 | $ | 157,882,377 | 11,817,492 | $ | 128,200,280 | ||||
68
Year ended July 31, 2014 | Year ended July 31, 2013 | |||||||||
Shares | Amount | Shares | Amount | |||||||
One Choice 2055 Portfolio | ||||||||||
Investor Class | ||||||||||
Sold | 2,022,537 | $ | 25,759,894 | 1,329,932 | $ | 14,885,809 | ||||
Issued in reinvestment of distributions | 50,208 | 634,132 | 9,360 | 98,281 | ||||||
Redeemed | (793,062 | ) | (10,112,243 | ) | (479,801 | ) | (5,422,948 | ) | ||
1,279,683 | 16,281,783 | 859,491 | 9,561,142 | |||||||
Institutional Class | ||||||||||
Sold | 2,980,841 | 38,058,501 | 690,555 | 7,705,028 | ||||||
Issued in reinvestment of distributions | 43,142 | 544,884 | 9,081 | 95,351 | ||||||
Redeemed | (671,823 | ) | (8,635,793 | ) | (175,954 | ) | (1,943,140 | ) | ||
2,352,160 | 29,967,592 | 523,682 | 5,857,239 | |||||||
A Class | ||||||||||
Sold | 1,570,011 | 19,921,268 | 1,082,184 | 12,072,068 | ||||||
Issued in reinvestment of distributions | 38,909 | 491,428 | 7,862 | 82,547 | ||||||
Redeemed | (377,223 | ) | (4,797,626 | ) | (231,729 | ) | (2,574,278 | ) | ||
1,231,697 | 15,615,070 | 858,317 | 9,580,337 | |||||||
C Class | ||||||||||
Sold | 18,650 | 236,856 | 12,693 | 143,571 | ||||||
Issued in reinvestment of distributions | 376 | 4,744 | 65 | 683 | ||||||
Redeemed | (4,431 | ) | (56,507 | ) | (3,412 | ) | (39,903 | ) | ||
14,595 | 185,093 | 9,346 | 104,351 | |||||||
R Class | ||||||||||
Sold | 732,757 | 9,301,944 | 556,067 | 6,227,902 | ||||||
Issued in reinvestment of distributions | 16,044 | 202,791 | 2,149 | 22,562 | ||||||
Redeemed | (269,107 | ) | (3,429,582 | ) | (84,792 | ) | (951,389 | ) | ||
479,694 | 6,075,153 | 473,424 | 5,299,075 | |||||||
Net increase (decrease) | 5,357,829 | $ | 68,124,691 | 2,724,260 | $ | 30,402,144 | ||||
69
6. Affiliated Fund Transactions
A summary of transactions for each underlying fund for the year ended July 31, 2014 follows:
Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice In Retirement Portfolio | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 14,944,428 | $ | 3,234,876 | $ | 1,222,456 | $ | 40,934 | $ | 1,051,891 | $ | 18,748,506 | ||||||
NT Equity Growth Fund | 49,297,798 | 17,048,678 | 7,585,912 | 43,292 | 5,621,440 | 61,996,124 | ||||||||||||
NT Growth Fund | 31,873,165 | 8,497,836 | 3,952,614 | 100,344 | 1,573,356 | 40,407,511 | ||||||||||||
NT Heritage Fund(3) | 12,508,155 | 4,756,825 | 1,550,430 | 9,807 | 1,464,643 | 15,558,098 | ||||||||||||
NT Large Company Value Fund | 53,907,490 | 16,032,551 | 7,486,948 | 43,256 | 2,637,745 | 68,182,408 | ||||||||||||
NT Mid Cap Value Fund | 19,675,632 | 6,373,015 | 2,630,940 | (9,618 | ) | 1,931,361 | 24,995,101 | |||||||||||
NT Small Company Fund | 10,036,211 | 4,147,039 | 1,499,761 | 41,626 | 1,340,452 | 12,384,609 | ||||||||||||
Real Estate Fund | 4,714,870 | 1,638,303 | 670,113 | 4,747 | 117,213 | 6,333,427 | ||||||||||||
High-Yield Fund | 18,494,686 | 6,466,070 | 680,835 | (13,348 | ) | 1,438,959 | 24,038,749 | |||||||||||
Inflation-Adjusted Bond Fund | 37,215,811 | 6,595,339 | 34,306,406 | (510,477 | ) | 411,609 | 9,514,071 | |||||||||||
NT Diversified Bond Fund | 130,456,430 | 52,730,061 | 17,602,325 | (660,703 | ) | 3,405,612 | 168,937,152 | |||||||||||
Short Duration Inflation Protection Bond Fund | — | 39,613,239 | 807,127 | (2,982 | ) | 240,104 | 38,843,486 | |||||||||||
Premium Money Market Fund | 48,837,927 | 17,619,526 | 2,860,983 | — | 5,637 | 63,596,470 | ||||||||||||
International Bond Fund | 34,150,558 | 12,247,562 | 3,877,198 | (159,340 | ) | 164,254 | 44,288,846 | |||||||||||
NT International Growth Fund | 24,648,291 | 8,772,745 | 3,387,196 | 83,247 | 1,633,398 | 31,157,092 | ||||||||||||
$ | 490,761,452 | $ | 205,773,665 | $ | 90,121,244 | $ | (989,215 | ) | $ | 23,037,674 | $ | 628,981,650 | ||||||
(1) | Underlying fund investments represent Institutional Class, except Premium Money Market Fund Investor Class. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
70
Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2015 Portfolio | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 36,217,755 | $ | 2,757,546 | $ | 4,405,128 | $ | 797,701 | $ | 2,340,134 | $ | 37,890,953 | ||||||
NT Equity Growth Fund | 114,915,003 | 19,301,091 | 14,417,853 | 846,276 | 12,549,285 | 126,044,031 | ||||||||||||
NT Growth Fund | 80,076,226 | 6,586,445 | 11,468,554 | 1,422,410 | 3,669,965 | 83,436,708 | ||||||||||||
NT Heritage Fund(3) | 35,202,020 | 5,959,558 | 6,784,446 | 1,106,210 | 3,608,711 | 33,170,019 | ||||||||||||
NT Large Company Value Fund | 127,590,950 | 14,368,890 | 15,146,919 | 958,716 | 5,847,194 | 138,445,986 | ||||||||||||
NT Mid Cap Value Fund | 50,233,314 | 5,204,690 | 6,096,721 | 584,696 | 4,567,334 | 52,347,142 | ||||||||||||
NT Small Company Fund | 25,161,735 | 4,373,572 | 3,222,133 | 703,570 | 3,000,796 | 25,081,867 | ||||||||||||
Real Estate Fund | 11,812,895 | 1,826,806 | 1,795,492 | 186,691 | 265,828 | 13,106,890 | ||||||||||||
High-Yield Fund | 41,104,653 | 7,784,290 | 457,863 | (9,376 | ) | 3,094,621 | 47,971,835 | |||||||||||
Inflation-Adjusted Bond Fund | 81,832,784 | 11,416,117 | 72,193,213 | (1,354,916 | ) | 1,067,581 | 21,286,754 | |||||||||||
NT Diversified Bond Fund | 296,513,740 | 64,151,754 | 26,861,775 | (918,180 | ) | 7,386,810 | 340,511,788 | |||||||||||
Short Duration Inflation Protection Bond Fund | — | 76,557,173 | 1,046,323 | 549 | 484,054 | 75,595,100 | ||||||||||||
Premium Money Market Fund | 101,533,706 | 25,508,189 | 1,660,022 | — | 11,662 | 125,381,873 | ||||||||||||
International Bond Fund | 73,095,451 | 14,332,856 | 2,918,309 | (127,032 | ) | 354,001 | 88,064,271 | |||||||||||
NT Emerging Markets Fund | 5,744,834 | 183,998 | 3,285,331 | 1,428,601 | 12,535 | 1,715,137 | ||||||||||||
NT International Growth Fund | 59,425,731 | 8,237,917 | 6,623,334 | 695,895 | 3,674,284 | 63,301,099 | ||||||||||||
$ | 1,140,460,797 | $ | 268,550,892 | $ | 178,383,416 | $ | 6,321,811 | $ | 51,934,795 | $ | 1,273,351,453 | |||||||
(1) | Underlying fund investments represent Institutional Class, except Premium Money Market Fund Investor Class. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
71
Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2020 Portfolio | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 29,295,304 | $ | 7,970,141 | $ | 974,339 | $ | 24,969 | $ | 2,225,836 | $ | 40,177,487 | ||||||
NT Equity Growth Fund | 92,628,694 | 34,619,516 | 5,846,452 | 47,206 | 11,306,212 | 128,117,838 | ||||||||||||
NT Growth Fund | 77,943,958 | 23,654,641 | 7,116,506 | 70,379 | 4,116,703 | 105,009,877 | ||||||||||||
NT Heritage Fund(3) | 38,099,577 | 14,875,088 | 4,197,873 | (85,366 | ) | 4,661,104 | 48,498,511 | |||||||||||
NT Large Company Value Fund | 109,159,548 | 35,859,765 | 8,121,910 | 152,858 | 5,711,182 | 149,517,346 | ||||||||||||
NT Mid Cap Value Fund | 48,559,183 | 15,115,980 | 2,306,323 | 20,206 | 5,092,997 | 65,528,416 | ||||||||||||
NT Small Company Fund | 20,078,437 | 8,080,004 | 1,114,588 | 11,054 | 2,822,271 | 26,466,705 | ||||||||||||
Real Estate Fund | 12,614,523 | 4,181,931 | 1,281,790 | 22,047 | 322,151 | 17,329,947 | ||||||||||||
High-Yield Fund | 35,081,429 | 15,082,324 | 521,775 | (8,479 | ) | 2,900,302 | 49,149,604 | |||||||||||
Inflation-Adjusted Bond Fund | 70,537,207 | 18,435,690 | 50,779,345 | (3,236,378 | ) | 1,802,549 | 40,427,949 | |||||||||||
NT Diversified Bond Fund | 244,627,045 | 117,951,231 | 23,999,218 | (930,553 | ) | 6,888,635 | 345,201,698 | |||||||||||
Short Duration Inflation Protection Bond Fund | — | 58,271,176 | 222,493 | (728 | ) | 354,566 | 58,114,015 | |||||||||||
Premium Money Market Fund | 65,611,158 | 33,958,308 | 1,332,994 | — | 8,413 | 98,236,472 | ||||||||||||
NT Emerging Markets Fund | 14,507,523 | 2,982,383 | 3,973,258 | 131,058 | 60,490 | 15,298,669 | ||||||||||||
NT International Growth Fund | 59,715,510 | 20,249,681 | 4,268,500 | 15,424 | 4,173,338 | 78,592,061 | ||||||||||||
International Bond Fund | 55,522,955 | 24,067,411 | 3,207,940 | (144,733 | ) | 289,653 | 79,380,924 | |||||||||||
$ | 973,982,051 | $ | 435,355,270 | $ | 119,265,304 | $ | (3,911,036 | ) | $ | 52,736,402 | $ | 1,345,047,519 | ||||||
(1) | Underlying fund investments represent Institutional Class, except Premium Money Market Fund Investor Class. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
72
Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2025 Portfolio | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 53,360,644 | $ | 6,541,827 | $ | 1,489,731 | $ | 86,948 | $ | 3,726,905 | $ | 64,788,224 | ||||||
NT Equity Growth Fund | 164,108,895 | 31,375,699 | 7,208,467 | 242,415 | 18,457,527 | 198,686,047 | ||||||||||||
NT Growth Fund | 164,867,112 | 21,298,267 | 13,448,563 | 408,671 | 7,969,246 | 193,046,477 | ||||||||||||
NT Heritage Fund(3) | 82,650,950 | 19,731,366 | 4,546,451 | 227,683 | 9,367,036 | 96,791,367 | ||||||||||||
NT Large Company Value Fund | 203,235,375 | 33,619,950 | 13,739,344 | 476,121 | 9,729,987 | 243,996,009 | ||||||||||||
NT Mid Cap Value Fund | 98,075,587 | 15,763,712 | 2,447,844 | 11,478 | 9,377,645 | 118,876,688 | ||||||||||||
NT Small Company Fund | 47,235,143 | 10,514,850 | 5,210,699 | 810,445 | 5,898,231 | 50,761,373 | ||||||||||||
Real Estate Fund | 25,448,646 | 7,019,948 | 2,566,724 | 127,696 | 641,596 | 33,383,373 | ||||||||||||
High-Yield Fund | 57,089,248 | 18,163,358 | — | — | 4,530,492 | 74,501,593 | ||||||||||||
Inflation-Adjusted Bond Fund | 116,102,568 | 24,565,426 | 53,627,066 | (4,085,924 | ) | 4,064,567 | 89,337,982 | |||||||||||
NT Diversified Bond Fund | 412,152,010 | 137,228,501 | 28,640,927 | (1,018,188 | ) | 10,841,936 | 530,428,369 | |||||||||||
Short Duration Inflation Protection Bond Fund | — | 59,956,552 | — | — | 364,456 | 60,015,491 | ||||||||||||
NT Emerging Markets Fund | 39,717,316 | 8,643,274 | 5,093,435 | 114,563 | 183,695 | 48,717,391 | ||||||||||||
NT International Growth Fund | 124,038,009 | 26,768,298 | 9,275,655 | 206,387 | 8,152,320 | 147,439,152 | ||||||||||||
Premium Money Market Fund | 84,682,336 | 24,404,419 | 249,515 | — | 9,863 | 108,837,240 | ||||||||||||
International Bond Fund | 71,988,018 | 28,449,061 | 1,470,607 | (76,753 | ) | 377,637 | 102,694,541 | |||||||||||
$ | 1,744,751,857 | $ | 474,044,508 | $ | 149,015,028 | $ | (2,468,458 | ) | $ | 93,693,139 | $ | 2,162,301,317 | ||||||
(1) | Underlying fund investments represent Institutional Class, except Premium Money Market Fund Investor Class. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
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Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2030 Portfolio | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 29,562,141 | $ | 9,528,866 | $ | 372,960 | $ | (4,513 | ) | $ | 2,319,837 | $ | 42,740,078 | |||||
NT Equity Growth Fund | 84,053,139 | 34,704,734 | 3,251,478 | (30,229 | ) | 10,579,493 | 121,713,108 | |||||||||||
NT Growth Fund | 100,889,606 | 33,532,615 | 6,589,295 | 37,057 | 5,450,239 | 141,632,611 | ||||||||||||
NT Heritage Fund(3) | 45,940,052 | 22,109,479 | 1,307,792 | (29,100 | ) | 5,986,874 | 65,961,559 | |||||||||||
NT Large Company Value Fund | 109,592,131 | 38,243,535 | 4,404,098 | 21,217 | 5,852,877 | 156,423,602 | ||||||||||||
NT Mid Cap Value Fund | 47,437,023 | 18,732,132 | 846,731 | (37,984 | ) | 5,147,837 | 69,560,002 | |||||||||||
NT Small Company Fund | 32,734,602 | 14,710,792 | 2,414,728 | (11,863 | ) | 4,744,927 | 44,093,587 | |||||||||||
Real Estate Fund | 16,129,099 | 6,601,905 | 1,442,676 | (47,237 | ) | 428,830 | 23,797,679 | |||||||||||
High-Yield Fund | 27,392,368 | 14,930,312 | 773,928 | (16,798 | ) | 2,333,921 | 41,126,774 | |||||||||||
Inflation-Adjusted Bond Fund | 55,839,595 | 25,941,147 | 16,171,137 | (1,396,275 | ) | 2,832,989 | 66,134,501 | |||||||||||
NT Diversified Bond Fund | 192,762,914 | 115,254,539 | 20,411,650 | (798,562 | ) | 5,652,045 | 293,062,384 | |||||||||||
Short Duration Inflation Protection Bond Fund | — | 17,894,997 | 210,499 | (577 | ) | 103,373 | 17,700,128 | |||||||||||
NT Emerging Markets Fund | 25,942,886 | 9,144,373 | 2,258,170 | (16,173 | ) | 131,140 | 36,675,822 | |||||||||||
NT International Growth Fund | 78,278,686 | 33,564,463 | 5,205,239 | 30,854 | 5,694,050 | 110,306,314 | ||||||||||||
Premium Money Market Fund | 45,224,828 | 23,162,907 | 1,269,781 | — | 5,753 | 67,117,954 | ||||||||||||
International Bond Fund | 15,822,818 | 13,546,142 | 393,580 | (16,531 | ) | 96,142 | 29,946,471 | |||||||||||
$ | 907,601,888 | $ | 431,602,938 | $ | 67,323,742 | $ | (2,316,714 | ) | $ | 57,360,327 | $ | 1,327,992,574 | ||||||
(1) | Underlying fund investments represent Institutional Class, except Premium Money Market Fund Investor Class. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
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Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2035 Portfolio | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 42,791,165 | $ | 7,694,961 | $ | 1,075,564 | $ | 43,821 | $ | 3,085,778 | $ | 54,745,212 | ||||||
NT Equity Growth Fund | 126,819,514 | 27,581,816 | 4,994,639 | 120,030 | 14,514,091 | 157,669,676 | ||||||||||||
NT Growth Fund | 168,353,342 | 28,905,261 | 6,945,766 | 16,283 | 8,415,493 | 212,029,145 | ||||||||||||
NT Heritage Fund(3) | 75,487,296 | 19,118,577 | 3,410,865 | (9,053 | ) | 8,777,194 | 90,400,282 | |||||||||||
NT Large Company Value Fund | 168,717,555 | 33,354,615 | 8,093,606 | 173,974 | 8,258,397 | 211,996,402 | ||||||||||||
NT Mid Cap Value Fund | 74,081,793 | 12,634,109 | 1,560,844 | 46,807 | 7,162,058 | 90,912,502 | ||||||||||||
NT Small Company Fund | 56,706,522 | 18,676,207 | 3,193,584 | 56,300 | 7,676,593 | 70,704,075 | ||||||||||||
Real Estate Fund | 26,110,401 | 7,146,120 | 2,483,193 | 86,583 | 650,539 | 34,358,220 | ||||||||||||
High-Yield Fund | 33,667,562 | 13,214,764 | 35,670 | (1,063 | ) | 2,719,587 | 46,363,256 | |||||||||||
Inflation-Adjusted Bond Fund | 69,184,635 | 26,898,577 | 2,793,946 | (295,149 | ) | 4,039,351 | 92,478,146 | |||||||||||
NT Diversified Bond Fund | 241,323,110 | 104,422,105 | 22,008,341 | (766,126 | ) | 6,574,805 | 329,838,678 | |||||||||||
Short Duration Inflation Protection Bond Fund | — | 1,250,930 | — | — | 3,117 | 1,250,774 | ||||||||||||
NT Emerging Markets Fund | 45,272,251 | 10,228,128 | 4,872,792 | 93,286 | 219,032 | 56,940,822 | ||||||||||||
NT International Growth Fund | 127,439,837 | 37,034,211 | 10,427,013 | 216,222 | 8,478,389 | 159,954,360 | ||||||||||||
Premium Money Market Fund | 55,091,232 | 26,843,285 | 676,882 | — | 6,897 | 81,257,635 | ||||||||||||
$ | 1,311,046,215 | $ | 375,003,666 | $ | 72,572,705 | $ | (218,085 | ) | $ | 80,581,321 | $ | 1,690,899,185 | ||||||
(1) | Underlying fund investments represent Institutional Class, except Premium Money Market Fund Investor Class. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
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Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2040 Portfolio | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 23,081,510 | $ | 8,123,670 | $ | 677,462 | $ | 22,465 | $ | 1,796,172 | $ | 33,643,317 | ||||||
NT Equity Growth Fund | 65,042,180 | 29,142,000 | 1,861,233 | (4,575 | ) | 8,411,470 | 97,204,560 | |||||||||||
NT Growth Fund | 88,028,301 | 33,618,731 | 3,234,461 | (5,852 | ) | 4,903,465 | 130,636,594 | |||||||||||
NT Heritage Fund(3) | 42,243,287 | 21,202,231 | 1,480,080 | (33,541 | ) | 5,605,573 | 61,209,041 | |||||||||||
NT Large Company Value Fund | 87,722,997 | 34,890,128 | 2,847,921 | 13,873 | 4,819,060 | 130,440,902 | ||||||||||||
NT Mid Cap Value Fund | 41,853,914 | 16,790,640 | 836,625 | (31,963 | ) | 4,582,891 | 61,554,660 | |||||||||||
NT Small Company Fund | 26,301,041 | 15,222,675 | 1,048,695 | (15,914 | ) | 4,036,738 | 39,601,289 | |||||||||||
Real Estate Fund | 14,420,260 | 6,826,992 | 1,496,120 | (18,757 | ) | 391,601 | 22,064,852 | |||||||||||
High-Yield Fund | 14,257,648 | 8,910,388 | 141,404 | (4,158 | ) | 1,281,288 | 22,787,989 | |||||||||||
Inflation-Adjusted Bond Fund | 28,556,394 | 19,172,640 | 1,447,052 | (151,048 | ) | 1,911,471 | 45,977,800 | |||||||||||
NT Diversified Bond Fund | 100,335,778 | 68,199,566 | 9,656,542 | (354,192 | ) | 3,063,568 | 161,778,774 | |||||||||||
NT Emerging Markets Fund | 27,657,189 | 11,958,825 | 2,856,841 | 10,612 | 146,669 | 40,912,527 | ||||||||||||
NT International Growth Fund | 63,418,475 | 30,901,291 | 2,349,679 | (10,376 | ) | 4,821,830 | 94,874,313 | |||||||||||
Premium Money Market Fund | 11,028,928 | 10,895,805 | 100,343 | — | 1,687 | 21,824,390 | ||||||||||||
$ | 633,947,902 | $ | 315,855,582 | $ | 30,034,458 | $ | (583,426 | ) | $ | 45,773,483 | $ | 964,511,008 | ||||||
(1) | Underlying fund investments represent Institutional Class, except Premium Money Market Fund Investor Class. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
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Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2045 Portfolio | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 39,566,192 | $ | 9,122,796 | $ | 1,037,251 | $ | 9,991 | $ | 2,930,850 | $ | 52,748,164 | ||||||
NT Equity Growth Fund | 90,379,333 | 29,574,539 | 2,317,858 | (25,940 | ) | 10,861,498 | 123,952,889 | |||||||||||
NT Growth Fund | 127,889,351 | 33,251,342 | 3,648,876 | (1,234 | ) | 6,559,040 | 174,316,985 | |||||||||||
NT Heritage Fund(3) | 64,314,419 | 25,152,662 | 1,385,991 | (36,855 | ) | 7,931,389 | 87,164,243 | |||||||||||
NT Large Company Value Fund | 127,911,268 | 36,765,032 | 4,586,089 | 57,117 | 6,473,313 | 174,412,519 | ||||||||||||
NT Mid Cap Value Fund | 63,178,564 | 20,219,862 | 1,091,426 | (6,280 | ) | 6,480,817 | 87,664,011 | |||||||||||
NT Small Company Fund | 37,198,289 | 14,914,124 | 3,307,801 | 60,892 | 4,956,241 | 47,776,691 | ||||||||||||
Real Estate Fund | 22,042,634 | 7,359,230 | 2,007,357 | 37,736 | 560,011 | 30,575,161 | ||||||||||||
High-Yield Fund | 16,781,963 | 7,598,563 | 1,966 | (52 | ) | 1,383,140 | 24,118,993 | |||||||||||
Inflation-Adjusted Bond Fund | 33,682,211 | 16,081,068 | 837,883 | (88,511 | ) | 2,040,120 | 48,498,016 | |||||||||||
NT Diversified Bond Fund | 118,928,323 | 61,610,096 | 13,454,933 | (486,712 | ) | 3,319,332 | 170,288,678 | |||||||||||
NT Emerging Markets Fund | 45,633,504 | 15,372,721 | 4,480,007 | (15,828 | ) | 229,520 | 63,250,343 | |||||||||||
NT International Growth Fund | 88,573,621 | 35,784,862 | 4,634,048 | (39,009 | ) | 6,268,923 | 123,813,510 | |||||||||||
$ | 876,079,672 | $ | 312,806,897 | $ | 42,791,486 | $ | (534,685 | ) | $ | 59,994,194 | $ | 1,208,580,203 | ||||||
(1) | Underlying fund investments represent Institutional Class. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
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Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2050 Portfolio | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 15,208,882 | $ | 6,811,629 | $ | 368,487 | $ | (927 | ) | $ | 1,201,611 | $ | 23,798,903 | |||||
NT Equity Growth Fund | 34,999,679 | 17,928,303 | 1,400,492 | (22,701 | ) | 4,414,247 | 54,182,084 | |||||||||||
NT Growth Fund | 50,096,465 | 23,307,440 | 2,243,084 | (8,117 | ) | 2,738,789 | 78,113,200 | |||||||||||
NT Heritage Fund(3) | 24,528,572 | 15,268,268 | 870,367 | (19,561 | ) | 3,258,085 | 38,453,694 | |||||||||||
NT Large Company Value Fund | 50,981,280 | 24,117,678 | 1,924,159 | (7,484 | ) | 2,755,783 | 79,436,310 | |||||||||||
NT Mid Cap Value Fund | 24,363,275 | 12,627,582 | 584,923 | (7,645 | ) | 2,658,533 | 38,676,937 | |||||||||||
NT Small Company Fund | 16,138,354 | 9,931,626 | 1,211,811 | (19,513 | ) | 2,407,024 | 24,383,176 | |||||||||||
Real Estate Fund | 9,368,529 | 4,948,631 | 982,978 | (22,719 | ) | 254,767 | 14,865,267 | |||||||||||
High-Yield Fund | 5,649,452 | 3,783,182 | 52,375 | (1,514 | ) | 501,082 | 9,279,822 | |||||||||||
Inflation-Adjusted Bond Fund | 11,325,745 | 8,133,038 | 726,013 | (73,876 | ) | 742,712 | 18,644,842 | |||||||||||
NT Diversified Bond Fund | 40,064,729 | 29,418,456 | 4,158,452 | (169,472 | ) | 1,216,223 | 66,515,538 | |||||||||||
NT Emerging Markets Fund | 20,971,635 | 10,844,032 | 2,586,213 | (76,559 | ) | 113,366 | 32,593,074 | |||||||||||
NT International Growth Fund | 33,255,084 | 20,344,903 | 2,141,585 | (17,056 | ) | 2,511,255 | 52,976,278 | |||||||||||
$ | 336,951,681 | $ | 187,464,768 | $ | 19,250,939 | $ | (447,144 | ) | $ | 24,773,477 | $ | 531,919,125 | ||||||
(1) | Underlying fund investments represent Institutional Class. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
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Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2055 Portfolio | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 2,137,578 | $ | 3,139,116 | $ | 177,385 | $ | (1,392 | ) | $ | 211,512 | $ | 5,506,746 | |||||
NT Equity Growth Fund | 5,086,776 | 7,988,031 | 503,803 | (16,637 | ) | 805,323 | 13,144,513 | |||||||||||
NT Growth Fund | 7,210,190 | 11,080,270 | 928,272 | (10,333 | ) | 495,268 | 18,642,499 | |||||||||||
NT Heritage Fund(3) | 3,569,212 | 6,115,440 | 395,466 | (27,474 | ) | 589,574 | 9,191,468 | |||||||||||
NT Large Company Value Fund | 7,304,290 | 11,123,856 | 741,673 | (5,695 | ) | 504,885 | 18,944,338 | |||||||||||
NT Mid Cap Value Fund | 3,536,383 | 5,523,949 | 329,861 | (7,375 | ) | 479,007 | 9,212,874 | |||||||||||
NT Small Company Fund | 2,375,397 | 4,022,862 | 218,105 | (11,410 | ) | 433,910 | 6,080,855 | |||||||||||
Real Estate Fund | 1,386,712 | 2,195,721 | 251,729 | (10,058 | ) | 50,249 | 3,680,880 | |||||||||||
NT Emerging Markets Fund | 3,062,283 | 4,873,289 | 665,993 | (15,941 | ) | 21,382 | 7,955,213 | |||||||||||
NT International Growth Fund | 4,491,965 | 7,764,955 | 772,269 | (13,356 | ) | 417,287 | 11,659,646 | |||||||||||
High-Yield Fund | 709,772 | 1,238,399 | 71,054 | (1,844 | ) | 82,124 | 1,856,771 | |||||||||||
Inflation-Adjusted Bond Fund | 1,420,209 | 2,587,915 | 294,392 | (30,724 | ) | 122,653 | 3,738,921 | |||||||||||
NT Diversified Bond Fund | 4,955,443 | 9,135,959 | 1,217,359 | (42,185 | ) | 197,747 | 13,103,228 | |||||||||||
$ | 47,246,210 | $ | 76,789,762 | $ | 6,567,361 | $ | (194,424 | ) | $ | 4,410,921 | $ | 122,717,952 | ||||||
(1) | Underlying fund investments represent Institutional Class. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
7. Investments in Underlying Funds
The funds do not invest in the underlying funds for the purpose of exercising management or control; however, investments by the funds within their investment strategies may represent a significant portion of the underlying funds’ net assets.
As of July 31, 2014, the funds, in aggregate, owned 98% of the shares of the underlying NT Core Equity Plus Fund, NT Diversified Bond Fund, NT Emerging Markets Fund, NT Equity Growth Fund, NT Growth Fund, NT Heritage Fund, NT International Growth Fund, NT Large Company Value Fund, NT Mid Cap Value Fund and NT Small Company Fund.
8. Fair Value Measurements
The funds’ investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the funds. 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, |
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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.
As of period end, the funds’ investment securities were classified as Level 1. The Schedules of Investments provide additional information on the funds’ portfolio holdings.
9. Federal Tax Information
The tax character of distributions paid during the years ended July 31, 2014 and July 31, 2013 were as follows:
2014 | 2013 | |||||||||||
Distributions Paid From: | Distributions Paid From: | |||||||||||
Ordinary income | Long-term capital gains | Ordinary income | Long-term capital gains | |||||||||
One Choice In Retirement Portfolio | $ | 11,064,101 | $ | 5,491,313 | $ | 7,401,513 | $ | 4,259,572 | ||||
One Choice 2015 Portfolio | $ | 25,138,271 | $ | 14,938,130 | $ | 18,467,497 | $ | 7,656,970 | ||||
One Choice 2020 Portfolio | $ | 22,955,607 | $ | 8,118,107 | $ | 12,718,934 | $ | 6,334,959 | ||||
One Choice 2025 Portfolio | $ | 41,096,621 | $ | 17,873,524 | $ | 24,883,625 | $ | 9,261,161 | ||||
One Choice 2030 Portfolio | $ | 23,043,333 | $ | 8,404,245 | $ | 10,510,363 | $ | 5,559,501 | ||||
One Choice 2035 Portfolio | $ | 32,247,769 | $ | 14,298,263 | $ | 15,837,573 | $ | 8,185,007 | ||||
One Choice 2040 Portfolio | $ | 17,734,546 | $ | 6,129,116 | $ | 6,404,633 | $ | 3,443,875 | ||||
One Choice 2045 Portfolio | $ | 23,244,240 | $ | 9,940,285 | $ | 9,786,591 | $ | 4,663,539 | ||||
One Choice 2050 Portfolio | $ | 9,480,679 | $ | 3,346,492 | $ | 3,087,879 | $ | 1,709,809 | ||||
One Choice 2055 Portfolio | $ | 1,588,935 | $ | 297,313 | $ | 251,068 | $ | 49,746 | ||||
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 July 31, 2014, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
One Choice In Retirement Portfolio | One Choice 2015 Portfolio | One Choice 2020 Portfolio | One Choice 2025 Portfolio | One Choice 2030 Portfolio | |||||||||||
Federal tax cost of investments | $ | 539,413,382 | $ | 1,068,203,642 | $ | 1,163,914,639 | $ | 1,802,969,093 | $ | 1,139,144,588 | |||||
Gross tax appreciation of investments | $ | 89,568,268 | $ | 205,147,811 | $ | 181,132,880 | $ | 359,332,224 | $ | 189,365,365 | |||||
Gross tax depreciation of investments | — | — | — | — | (517,379 | ) | |||||||||
Net tax appreciation (depreciation) of investments | $ | 89,568,268 | $ | 205,147,811 | $ | 181,132,880 | $ | 359,332,224 | $ | 188,847,986 | |||||
Undistributed ordinary income | — | $ | 5,769,814 | $ | 6,731,904 | $ | 10,452,379 | $ | 6,134,571 | ||||||
Accumulated long-term gains | $ | 8,406,405 | $ | 23,434,846 | $ | 22,148,500 | $ | 44,104,553 | $ | 28,694,179 | |||||
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One Choice 2035 Portfolio | One Choice 2040 Portfolio | One Choice 2045 Portfolio | One Choice 2050 Portfolio | One Choice 2055 Portfolio | |||||||||||
Federal tax cost of investments | $ | 1,395,647,555 | $ | 822,080,403 | $ | 997,805,688 | $ | 457,007,088 | $ | 113,234,978 | |||||
Gross tax appreciation of investments | $ | 296,139,437 | $ | 143,641,091 | $ | 211,589,441 | $ | 75,478,443 | $ | 9,563,853 | |||||
Gross tax depreciation of investments | (887,807 | ) | (1,210,486 | ) | (814,926 | ) | (566,406 | ) | (80,879 | ) | |||||
Net tax appreciation (depreciation) of investments | $ | 295,251,630 | $ | 142,430,605 | $ | 210,774,515 | $ | 74,912,037 | $ | 9,482,974 | |||||
Undistributed ordinary income | $ | 8,104,014 | $ | 4,129,362 | $ | 4,915,307 | $ | 1,966,991 | $ | 429,877 | |||||
Accumulated long-term gains | $ | 41,990,066 | $ | 24,334,082 | $ | 32,534,339 | $ | 13,444,899 | $ | 2,321,241 | |||||
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
One Choice In Retirement Portfolio | |||||||||||||||
Investor Class | |||||||||||||||
2014 | $12.41 | 0.27 | 0.73 | 1.00 | (0.27) | (0.12) | (0.39) | $13.02 | 8.19% | 0.20% | 2.09% | 16% | $255,133 | ||
2013 | $11.61 | 0.22 | 0.94 | 1.16 | (0.23) | (0.13) | (0.36) | $12.41 | 10.11% | 0.20% | 1.83% | 11% | $205,529 | ||
2012 | $11.23 | 0.25 | 0.39 | 0.64 | (0.26) | — | (0.26) | $11.61 | 5.81% | 0.21% | 2.21% | 28% | $128,450 | ||
2011 | $10.27 | 0.24 | 0.97 | 1.21 | (0.25) | — | (0.25) | $11.23 | 11.87% | 0.21% | 2.26% | 10% | $81,907 | ||
2010 | $9.53 | 0.22 | 0.74 | 0.96 | (0.22) | — | (0.22) | $10.27 | 10.15% | 0.21% | 2.19% | 13% | $102,497 | ||
Institutional Class | |||||||||||||||
2014 | $12.42 | 0.29 | 0.73 | 1.02 | (0.29) | (0.12) | (0.41) | $13.03 | 8.40% | 0.00%(4) | 2.29% | 16% | $130,406 | ||
2013 | $11.61 | 0.25 | 0.94 | 1.19 | (0.25) | (0.13) | (0.38) | $12.42 | 10.42% | 0.00%(4) | 2.03% | 11% | $104,270 | ||
2012 | $11.24 | 0.27 | 0.38 | 0.65 | (0.28) | — | (0.28) | $11.61 | 5.92% | 0.01% | 2.41% | 28% | $74,759 | ||
2011 | $10.27 | 0.28 | 0.96 | 1.24 | (0.27) | — | (0.27) | $11.24 | 12.20% | 0.01% | 2.46% | 10% | $104,778 | ||
2010 | $9.53 | 0.24 | 0.74 | 0.98 | (0.24) | — | (0.24) | $10.27 | 10.37% | 0.01% | 2.39% | 13% | $39,202 | ||
A Class(5) | |||||||||||||||
2014 | $12.41 | 0.24 | 0.73 | 0.97 | (0.24) | (0.12) | (0.36) | $13.02 | 7.92% | 0.45% | 1.84% | 16% | $139,911 | ||
2013 | $11.60 | 0.19 | 0.95 | 1.14 | (0.20) | (0.13) | (0.33) | $12.41 | 9.94% | 0.45% | 1.58% | 11% | $119,504 | ||
2012 | $11.23 | 0.23 | 0.37 | 0.60 | (0.23) | — | (0.23) | $11.60 | 5.46% | 0.46% | 1.96% | 28% | $105,111 | ||
2011 | $10.27 | 0.22 | 0.96 | 1.18 | (0.22) | — | (0.22) | $11.23 | 11.60% | 0.46% | 2.01% | 10% | $87,205 | ||
2010 | $9.53 | 0.19 | 0.75 | 0.94 | (0.20) | — | (0.20) | $10.27 | 9.87% | 0.46% | 1.94% | 13% | $68,110 | ||
82
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
C Class | |||||||||||||||
2014 | $12.41 | 0.14 | 0.73 | 0.87 | (0.16) | (0.12) | (0.28) | $13.00 | 7.13% | 1.20% | 1.09% | 16% | $2,574 | ||
2013 | $11.61 | 0.10 | 0.94 | 1.04 | (0.11) | (0.13) | (0.24) | $12.41 | 9.04% | 1.20% | 0.83% | 11% | $1,369 | ||
2012 | $11.24 | 0.14 | 0.38 | 0.52 | (0.15) | — | (0.15) | $11.61 | 4.69% | 1.21% | 1.21% | 28% | $810 | ||
2011 | $10.27 | 0.09 | 1.02 | 1.11 | (0.14) | — | (0.14) | $11.24 | 10.87% | 1.21% | 1.26% | 10% | $538 | ||
2010(6) | $10.15 | 0.03 | 0.12 | 0.15 | (0.03) | — | (0.03) | $10.27 | 1.51% | 1.21%(7) | 0.77%(7) | 13%(8) | $35 | ||
R Class | |||||||||||||||
2014 | $12.40 | 0.20 | 0.72 | 0.92 | (0.20) | (0.12) | (0.32) | $13.00 | 7.57% | 0.70% | 1.59% | 16% | $100,946 | ||
2013 | $11.59 | 0.16 | 0.95 | 1.11 | (0.17) | (0.13) | (0.30) | $12.40 | 9.67% | 0.70% | 1.33% | 11% | $60,104 | ||
2012 | $11.22 | 0.18 | 0.39 | 0.57 | (0.20) | — | (0.20) | $11.59 | 5.20% | 0.71% | 1.71% | 28% | $38,365 | ||
2011 | $10.26 | 0.19 | 0.96 | 1.15 | (0.19) | — | (0.19) | $11.22 | 11.33% | 0.71% | 1.76% | 10% | $24,616 | ||
2010 | $9.52 | 0.16 | 0.75 | 0.91 | (0.17) | — | (0.17) | $10.26 | 9.61% | 0.71% | 1.69% | 13% | $12,527 | ||
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 of operating expenses to average net assets does not include any fees and expenses of the underlying funds. |
(4) | Ratio was less than 0.005%. |
(5) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. |
(6) | March 1, 2010 (commencement of sale) through July 31, 2010. |
(7) | Annualized. |
(8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
83
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
One Choice 2015 Portfolio | |||||||||||||||
Investor Class | |||||||||||||||
2014 | $13.19 | 0.29 | 0.79 | 1.08 | (0.28) | (0.18) | (0.46) | $13.81 | 8.27% | 0.20% | 2.13% | 15% | $598,572 | ||
2013 | $12.26 | 0.24 | 1.04 | 1.28 | (0.25) | (0.10) | (0.35) | $13.19 | 10.61% | 0.20% | 1.85% | 6% | $543,673 | ||
2012 | $11.88 | 0.26 | 0.39 | 0.65 | (0.27) | — | (0.27) | $12.26 | 5.63% | 0.21% | 2.22% | 19% | $424,416 | ||
2011 | $10.76 | 0.25 | 1.11 | 1.36 | (0.24) | — | (0.24) | $11.88 | 12.72% | 0.21% | 2.21% | 4% | $322,747 | ||
2010 | $9.87 | 0.22 | 0.86 | 1.08 | (0.19) | — | (0.19) | $10.76 | 11.00% | 0.21% | 2.11% | 9% | $284,172 | ||
Institutional Class | |||||||||||||||
2014 | $13.21 | 0.31 | 0.81 | 1.12 | (0.31) | (0.18) | (0.49) | $13.84 | 8.56% | 0.00%(4) | 2.33% | 15% | $233,983 | ||
2013 | $12.28 | 0.26 | 1.04 | 1.30 | (0.27) | (0.10) | (0.37) | $13.21 | 10.82% | 0.00%(4) | 2.05% | 6% | $182,995 | ||
2012 | $11.90 | 0.29 | 0.38 | 0.67 | (0.29) | — | (0.29) | $12.28 | 5.83% | 0.01% | 2.42% | 19% | $125,106 | ||
2011 | $10.78 | 0.29 | 1.09 | 1.38 | (0.26) | — | (0.26) | $11.90 | 12.92% | 0.01% | 2.41% | 4% | $175,214 | ||
2010 | $9.89 | 0.25 | 0.85 | 1.10 | (0.21) | — | (0.21) | $10.78 | 11.20% | 0.01% | 2.31% | 9% | $82,264 | ||
A Class(5) | |||||||||||||||
2014 | $13.17 | 0.26 | 0.78 | 1.04 | (0.24) | (0.18) | (0.42) | $13.79 | 8.01% | 0.45% | 1.88% | 15% | $308,075 | ||
2013 | $12.24 | 0.20 | 1.05 | 1.25 | (0.22) | (0.10) | (0.32) | $13.17 | 10.34% | 0.45% | 1.60% | 6% | $295,377 | ||
2012 | $11.87 | 0.23 | 0.38 | 0.61 | (0.24) | — | (0.24) | $12.24 | 5.28% | 0.46% | 1.97% | 19% | $242,298 | ||
2011 | $10.75 | 0.22 | 1.11 | 1.33 | (0.21) | — | (0.21) | $11.87 | 12.44% | 0.46% | 1.96% | 4% | $178,615 | ||
2010 | $9.86 | 0.19 | 0.86 | 1.05 | (0.16) | — | (0.16) | $10.75 | 10.73% | 0.46% | 1.86% | 9% | $115,945 | ||
84
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
C Class | |||||||||||||||
2014 | $13.14 | 0.15 | 0.79 | 0.94 | (0.14) | (0.18) | (0.32) | $13.76 | 7.21% | 1.20% | 1.13% | 15% | $4,764 | ||
2013 | $12.21 | 0.11 | 1.04 | 1.15 | (0.12) | (0.10) | (0.22) | $13.14 | 9.53% | 1.20% | 0.85% | 6% | $4,003 | ||
2012 | $11.84 | 0.13 | 0.39 | 0.52 | (0.15) | — | (0.15) | $12.21 | 4.50% | 1.21% | 1.22% | 19% | $2,124 | ||
2011 | $10.72 | 0.12 | 1.12 | 1.24 | (0.12) | — | (0.12) | $11.84 | 11.62% | 1.21% | 1.21% | 4% | $934 | ||
2010(6) | $10.55 | 0.04 | 0.13 | 0.17 | — | — | — | $10.72 | 1.61% | 1.21%(7) | 0.83%(7) | 9%(8) | $182 | ||
R Class | |||||||||||||||
2014 | $13.15 | 0.22 | 0.80 | 1.02 | (0.21) | (0.18) | (0.39) | $13.78 | 7.83% | 0.70% | 1.63% | 15% | $127,958 | ||
2013 | $12.22 | 0.17 | 1.04 | 1.21 | (0.18) | (0.10) | (0.28) | $13.15 | 10.08% | 0.70% | 1.35% | 6% | $114,413 | ||
2012 | $11.85 | 0.20 | 0.38 | 0.58 | (0.21) | — | (0.21) | $12.22 | 5.02% | 0.71% | 1.72% | 19% | $86,079 | ||
2011 | $10.73 | 0.20 | 1.10 | 1.30 | (0.18) | — | (0.18) | $11.85 | 12.18% | 0.71% | 1.71% | 4% | $58,006 | ||
2010 | $9.84 | 0.16 | 0.87 | 1.03 | (0.14) | — | (0.14) | $10.73 | 10.47% | 0.71% | 1.61% | 9% | $37,643 | ||
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 of operating expenses to average net assets does not include any fees and expenses of the underlying funds. |
(4) | Ratio was less than 0.005%. |
(5) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. |
(6) | March 1, 2010 (commencement of sale) through July 31, 2010. |
(7) | Annualized. |
(8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
85
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
One Choice 2020 Portfolio | |||||||||||||||
Investor Class | |||||||||||||||
2014 | $11.56 | 0.26 | 0.77 | 1.03 | (0.24) | (0.09) | (0.33) | $12.26 | 8.99% | 0.20% | 2.16% | 10% | $549,087 | ||
2013 | $10.64 | 0.20 | 1.02 | 1.22 | (0.20) | (0.10) | (0.30) | $11.56 | 11.67% | 0.20% | 1.79% | 6% | $384,010 | ||
2012 | $10.37 | 0.21 | 0.32 | 0.53 | (0.23) | (0.03) | (0.26) | $10.64 | 5.27% | 0.21% | 2.14% | 28% | $218,341 | ||
2011 | $9.30 | 0.20 | 1.06 | 1.26 | (0.19) | —(4) | (0.19) | $10.37 | 13.66% | 0.21% | 2.13% | 4% | $105,921 | ||
2010 | $8.47 | 0.19 | 0.80 | 0.99 | (0.15) | (0.01) | (0.16) | $9.30 | 11.69% | 0.21% | 1.99% | 8% | $127,604 | ||
Institutional Class | |||||||||||||||
2014 | $11.57 | 0.28 | 0.77 | 1.05 | (0.26) | (0.09) | (0.35) | $12.27 | 9.20% | 0.00%(5) | 2.36% | 10% | $310,325 | ||
2013 | $10.65 | 0.22 | 1.02 | 1.24 | (0.22) | (0.10) | (0.32) | $11.57 | 11.89% | 0.00%(5) | 1.99% | 6% | $211,576 | ||
2012 | $10.38 | 0.25 | 0.30 | 0.55 | (0.25) | (0.03) | (0.28) | $10.65 | 5.48% | 0.01% | 2.34% | 28% | $99,935 | ||
2011 | $9.31 | 0.24 | 1.04 | 1.28 | (0.21) | —(4) | (0.21) | $10.38 | 13.88% | 0.01% | 2.33% | 4% | $169,034 | ||
2010 | $8.47 | 0.20 | 0.81 | 1.01 | (0.16) | (0.01) | (0.17) | $9.31 | 11.90% | 0.01% | 2.19% | 8% | $44,304 | ||
A Class(6) | |||||||||||||||
2014 | $11.54 | 0.23 | 0.76 | 0.99 | (0.21) | (0.09) | (0.30) | $12.23 | 8.64% | 0.45% | 1.91% | 10% | $334,141 | ||
2013 | $10.62 | 0.17 | 1.02 | 1.19 | (0.17) | (0.10) | (0.27) | $11.54 | 11.41% | 0.45% | 1.54% | 6% | $270,040 | ||
2012 | $10.36 | 0.20 | 0.29 | 0.49 | (0.20) | (0.03) | (0.23) | $10.62 | 4.92% | 0.46% | 1.89% | 28% | $180,502 | ||
2011 | $9.28 | 0.19 | 1.05 | 1.24 | (0.16) | —(4) | (0.16) | $10.36 | 13.51% | 0.46% | 1.88% | 4% | $124,401 | ||
2010 | $8.45 | 0.15 | 0.81 | 0.96 | (0.12) | (0.01) | (0.13) | $9.28 | 11.43% | 0.46% | 1.74% | 8% | $80,483 | ||
86
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
C Class | |||||||||||||||
2014 | $11.52 | 0.14 | 0.77 | 0.91 | (0.12) | (0.09) | (0.21) | $12.22 | 7.91% | 1.20% | 1.16% | 10% | $10,743 | ||
2013 | $10.61 | 0.08 | 1.02 | 1.10 | (0.09) | (0.10) | (0.19) | $11.52 | 10.48% | 1.20% | 0.79% | 6% | $6,117 | ||
2012 | $10.34 | 0.10 | 0.32 | 0.42 | (0.12) | (0.03) | (0.15) | $10.61 | 4.23% | 1.21% | 1.14% | 28% | $2,304 | ||
2011 | $9.26 | 0.10 | 1.07 | 1.17 | (0.09) | —(4) | (0.09) | $10.34 | 12.68% | 1.21% | 1.13% | 4% | $578 | ||
2010(7) | $9.12 | 0.03 | 0.11 | 0.14 | — | — | — | $9.26 | 1.54% | 1.21%(8) | 0.67%(8) | 8%(9) | $103 | ||
R Class | |||||||||||||||
2014 | $11.53 | 0.20 | 0.76 | 0.96 | (0.18) | (0.09) | (0.27) | $12.22 | 8.37% | 0.70% | 1.66% | 10% | $140,753 | ||
2013 | $10.61 | 0.14 | 1.03 | 1.17 | (0.15) | (0.10) | (0.25) | $11.53 | 11.14% | 0.70% | 1.29% | 6% | $102,250 | ||
2012 | $10.34 | 0.16 | 0.31 | 0.47 | (0.17) | (0.03) | (0.20) | $10.61 | 4.76% | 0.71% | 1.64% | 28% | $61,212 | ||
2011 | $9.27 | 0.16 | 1.05 | 1.21 | (0.14) | —(4) | (0.14) | $10.34 | 13.13% | 0.71% | 1.63% | 4% | $35,703 | ||
2010 | $8.44 | 0.13 | 0.81 | 0.94 | (0.10) | (0.01) | (0.11) | $9.27 | 11.17% | 0.71% | 1.49% | 8% | $14,928 | ||
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 of operating expenses to average net assets does not include any fees and expenses of the underlying funds. |
(4) | Per-share amount was less than $0.005. |
(5) | Ratio was less than 0.005%. |
(6) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. |
(7) | March 1, 2010 (commencement of sale) through July 31, 2010. |
(8) | Annualized. |
(9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
87
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
One Choice 2025 Portfolio | |||||||||||||||
Investor Class | |||||||||||||||
2014 | $13.71 | 0.32 | 0.98 | 1.30 | (0.30) | (0.14) | (0.44) | $14.57 | 9.61% | 0.20% | 2.23% | 7% | $992,507 | ||
2013 | $12.46 | 0.23 | 1.35 | 1.58 | (0.24) | (0.09) | (0.33) | $13.71 | 12.88% | 0.20% | 1.79% | 3% | $807,998 | ||
2012 | $12.13 | 0.25 | 0.34 | 0.59 | (0.26) | — | (0.26) | $12.46 | 4.99% | 0.21% | 2.07% | 21% | $554,462 | ||
2011 | $10.78 | 0.23 | 1.34 | 1.57 | (0.22) | — | (0.22) | $12.13 | 14.60% | 0.21% | 1.98% | 3% | $425,965 | ||
2010 | $9.76 | 0.19 | 1.00 | 1.19 | (0.17) | — | (0.17) | $10.78 | 12.19% | 0.21% | 1.83% | 10% | $393,154 | ||
Institutional Class | |||||||||||||||
2014 | $13.72 | 0.34 | 0.99 | 1.33 | (0.33) | (0.14) | (0.47) | $14.58 | 9.83% | 0.00%(4) | 2.43% | 7% | $424,420 | ||
2013 | $12.47 | 0.26 | 1.35 | 1.61 | (0.27) | (0.09) | (0.36) | $13.72 | 13.10% | 0.00%(4) | 1.99% | 3% | $298,052 | ||
2012 | $12.14 | 0.27 | 0.34 | 0.61 | (0.28) | — | (0.28) | $12.47 | 5.20% | 0.01% | 2.27% | 21% | $181,693 | ||
2011 | $10.79 | 0.27 | 1.32 | 1.59 | (0.24) | — | (0.24) | $12.14 | 14.82% | 0.01% | 2.18% | 3% | $257,121 | ||
2010 | $9.77 | 0.21 | 1.00 | 1.21 | (0.19) | — | (0.19) | $10.79 | 12.40% | 0.01% | 2.03% | 10% | $103,770 | ||
A Class(5) | |||||||||||||||
2014 | $13.69 | 0.29 | 0.98 | 1.27 | (0.27) | (0.14) | (0.41) | $14.55 | 9.35% | 0.45% | 1.98% | 7% | $528,142 | ||
2013 | $12.44 | 0.20 | 1.35 | 1.55 | (0.21) | (0.09) | (0.30) | $13.69 | 12.61% | 0.45% | 1.54% | 3% | $460,301 | ||
2012 | $12.11 | 0.22 | 0.34 | 0.56 | (0.23) | — | (0.23) | $12.44 | 4.73% | 0.46% | 1.82% | 21% | $327,130 | ||
2011 | $10.77 | 0.20 | 1.33 | 1.53 | (0.19) | — | (0.19) | $12.11 | 14.23% | 0.46% | 1.73% | 3% | $242,996 | ||
2010 | $9.74 | 0.16 | 1.01 | 1.17 | (0.14) | — | (0.14) | $10.77 | 12.03% | 0.46% | 1.58% | 10% | $143,045 | ||
88
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
C Class | |||||||||||||||
2014 | $13.67 | 0.18 | 0.97 | 1.15 | (0.16) | (0.14) | (0.30) | $14.52 | 8.46% | 1.20% | 1.23% | 7% | $7,147 | ||
2013 | $12.41 | 0.10 | 1.36 | 1.46 | (0.11) | (0.09) | (0.20) | $13.67 | 11.86% | 1.20% | 0.79% | 3% | $6,179 | ||
2012 | $12.09 | 0.12 | 0.34 | 0.46 | (0.14) | — | (0.14) | $12.41 | 3.87% | 1.21% | 1.07% | 21% | $3,498 | ||
2011 | $10.74 | 0.11 | 1.34 | 1.45 | (0.10) | — | (0.10) | $12.09 | 13.50% | 1.21% | 0.98% | 3% | $1,595 | ||
2010(6) | $10.58 | 0.02 | 0.14 | 0.16 | — | — | — | $10.74 | 1.51% | 1.21%(7) | 0.43%(7) | 10%(8) | $373 | ||
R Class | |||||||||||||||
2014 | $13.67 | 0.25 | 0.97 | 1.22 | (0.23) | (0.14) | (0.37) | $14.52 | 9.01% | 0.70% | 1.73% | 7% | $210,067 | ||
2013 | $12.42 | 0.17 | 1.35 | 1.52 | (0.18) | (0.09) | (0.27) | $13.67 | 12.34% | 0.70% | 1.29% | 3% | $172,227 | ||
2012 | $12.09 | 0.19 | 0.34 | 0.53 | (0.20) | — | (0.20) | $12.42 | 4.48% | 0.71% | 1.57% | 21% | $129,489 | ||
2011 | $10.75 | 0.17 | 1.33 | 1.50 | (0.16) | — | (0.16) | $12.09 | 13.97% | 0.71% | 1.48% | 3% | $88,153 | ||
2010 | $9.73 | 0.14 | 0.99 | 1.13 | (0.11) | — | (0.11) | $10.75 | 11.66% | 0.71% | 1.33% | 10% | $47,433 | ||
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 of operating expenses to average net assets does not include any fees and expenses of the underlying funds. |
(4) | Ratio was less than 0.005%. |
(5) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. |
(6) | March 1, 2010 (commencement of sale) through July 31, 2010. |
(7) | Annualized. |
(8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
89
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
One Choice 2030 Portfolio | |||||||||||||||
Investor Class | |||||||||||||||
2014 | $11.62 | 0.27 | 0.89 | 1.16 | (0.25) | (0.09) | (0.34) | $12.44 | 10.15% | 0.20% | 2.27% | 6% | $512,356 | ||
2013 | $10.41 | 0.18 | 1.30 | 1.48 | (0.18) | (0.09) | (0.27) | $11.62 | 14.53% | 0.21% | 1.66% | 5% | $333,309 | ||
2012 | $10.17 | 0.18 | 0.27 | 0.45 | (0.19) | (0.02) | (0.21) | $10.41 | 4.60% | 0.21% | 1.87% | 28% | $170,955 | ||
2011 | $8.95 | 0.16 | 1.21 | 1.37 | (0.15) | —(4) | (0.15) | $10.17 | 15.41% | 0.21% | 1.76% | 4% | $76,884 | ||
2010 | $8.04 | 0.14 | 0.89 | 1.03 | (0.11) | (0.01) | (0.12) | $8.95 | 12.9% | 0.21% | 1.63% | 7% | $99,983 | ||
Institutional Class | |||||||||||||||
2014 | $11.62 | 0.30 | 0.89 | 1.19 | (0.28) | (0.09) | (0.37) | $12.44 | 10.37% | 0.00%(5) | 2.47% | 6% | $320,834 | ||
2013 | $10.42 | 0.21 | 1.28 | 1.49 | (0.20) | (0.09) | (0.29) | $11.62 | 14.76% | 0.01% | 1.86% | 5% | $202,598 | ||
2012 | $10.18 | 0.21 | 0.26 | 0.47 | (0.21) | (0.02) | (0.23) | $10.42 | 4.71% | 0.01% | 2.07% | 28% | $94,349 | ||
2011 | $8.95 | 0.20 | 1.20 | 1.40 | (0.17) | —(4) | (0.17) | $10.18 | 15.62% | 0.01% | 1.96% | 4% | $144,661 | ||
2010 | $8.05 | 0.16 | 0.88 | 1.04 | (0.13) | (0.01) | (0.14) | $8.95 | 13.11% | 0.01% | 1.83% | 7% | $33,647 | ||
A Class(6) | |||||||||||||||
2014 | $11.59 | 0.24 | 0.89 | 1.13 | (0.22) | (0.09) | (0.31) | $12.41 | 9.89% | 0.45% | 2.02% | 6% | $355,604 | ||
2013 | $10.38 | 0.16 | 1.30 | 1.46 | (0.16) | (0.09) | (0.25) | $11.59 | 14.28% | 0.46% | 1.41% | 5% | $264,393 | ||
2012 | $10.15 | 0.17 | 0.24 | 0.41 | (0.16) | (0.02) | (0.18) | $10.38 | 4.25% | 0.46% | 1.62% | 28% | $170,227 | ||
2011 | $8.93 | 0.15 | 1.20 | 1.35 | (0.13) | —(4) | (0.13) | $10.15 | 15.15% | 0.46% | 1.51% | 4% | $114,892 | ||
2010 | $8.03 | 0.12 | 0.88 | 1.00 | (0.09) | (0.01) | (0.10) | $8.93 | 12.51% | 0.46% | 1.38% | 7% | $71,159 | ||
90
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
C Class | |||||||||||||||
2014 | $11.57 | 0.16 | 0.88 | 1.04 | (0.13) | (0.09) | (0.22) | $12.39 | 9.07% | 1.20% | 1.27% | 6% | $4,449 | ||
2013 | $10.37 | 0.07 | 1.29 | 1.36 | (0.07) | (0.09) | (0.16) | $11.57 | 13.32% | 1.21% | 0.66% | 5% | $3,417 | ||
2012 | $10.13 | 0.09 | 0.26 | 0.35 | (0.09) | (0.02) | (0.11) | $10.37 | 3.57% | 1.21% | 0.87% | 28% | $1,595 | ||
2011 | $8.92 | 0.06 | 1.20 | 1.26 | (0.05) | —(4) | (0.05) | $10.13 | 14.18% | 1.21% | 0.76% | 4% | $728 | ||
2010(7) | $8.80 | 0.02 | 0.10 | 0.12 | — | — | — | $8.92 | 1.36% | 1.21%(8) | 0.41%(8) | 7%(9) | $162 | ||
R Class | |||||||||||||||
2014 | $11.58 | 0.22 | 0.87 | 1.09 | (0.19) | (0.09) | (0.28) | $12.39 | 9.53% | 0.70% | 1.77% | 6% | $134,751 | ||
2013 | $10.37 | 0.13 | 1.30 | 1.43 | (0.13) | (0.09) | (0.22) | $11.58 | 14.00% | 0.71% | 1.16% | 5% | $103,886 | ||
2012 | $10.14 | 0.13 | 0.26 | 0.39 | (0.14) | (0.02) | (0.16) | $10.37 | 3.99% | 0.71% | 1.37% | 28% | $69,278 | ||
2011 | $8.92 | 0.12 | 1.20 | 1.32 | (0.10) | —(4) | (0.10) | $10.14 | 14.88% | 0.71% | 1.26% | 4% | $35,411 | ||
2010 | $8.02 | 0.10 | 0.88 | 0.98 | (0.07) | (0.01) | (0.08) | $8.92 | 12.24% | 0.71% | 1.13% | 7% | $14,455 | ||
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 of operating expenses to average net assets does not include any fees and expenses of the underlying funds. |
(4) | Per-share amount was less than $0.005. |
(5) | Ratio was less than 0.005%. |
(6) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. |
(7) | March 1, 2010 (commencement of sale) through July 31, 2010. |
(8) | Annualized. |
(9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
91
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
One Choice 2035 Portfolio | |||||||||||||||
Investor Class | |||||||||||||||
2014 | $14.52 | 0.35 | 1.22 | 1.57 | (0.34) | (0.15) | (0.49) | $15.60 | 10.91% | 0.20% | 2.32% | 5% | $755,938 | ||
2013 | $12.81 | 0.22 | 1.82 | 2.04 | (0.22) | (0.11) | (0.33) | $14.52 | 16.24% | 0.20% | 1.62% | 3% | $573,216 | ||
2012 | $12.52 | 0.22 | 0.30 | 0.52 | (0.23) | — | (0.23) | $12.81 | 4.26% | 0.21% | 1.82% | 16% | $374,544 | ||
2011 | $10.92 | 0.20 | 1.59 | 1.79 | (0.19) | — | (0.19) | $12.52 | 16.44% | 0.21% | 1.68% | 3% | $277,333 | ||
2010 | $9.74 | 0.17 | 1.15 | 1.32 | (0.14) | — | (0.14) | $10.92 | 13.58% | 0.21% | 1.54% | 8% | $231,716 | ||
Institutional Class | |||||||||||||||
2014 | $14.55 | 0.38 | 1.21 | 1.59 | (0.37) | (0.15) | (0.52) | $15.62 | 11.04% | 0.00%(4) | 2.52% | 5% | $323,043 | ||
2013 | $12.83 | 0.25 | 1.83 | 2.08 | (0.25) | (0.11) | (0.36) | $14.55 | 16.54% | 0.00%(4) | 1.82% | 3% | $235,505 | ||
2012 | $12.54 | 0.25 | 0.29 | 0.54 | (0.25) | — | (0.25) | $12.83 | 4.46% | 0.01% | 2.02% | 16% | $138,143 | ||
2011 | $10.93 | 0.24 | 1.58 | 1.82 | (0.21) | — | (0.21) | $12.54 | 16.75% | 0.01% | 1.88% | 3% | $154,449 | ||
2010 | $9.76 | 0.19 | 1.14 | 1.33 | (0.16) | — | (0.16) | $10.93 | 13.68% | 0.01% | 1.74% | 8% | $66,385 | ||
A Class(5) | |||||||||||||||
2014 | $14.51 | 0.32 | 1.20 | 1.52 | (0.30) | (0.15) | (0.45) | $15.58 | 10.57% | 0.45% | 2.07% | 5% | $425,198 | ||
2013 | $12.79 | 0.19 | 1.83 | 2.02 | (0.19) | (0.11) | (0.30) | $14.51 | 16.05% | 0.45% | 1.37% | 3% | $356,751 | ||
2012 | $12.50 | 0.20 | 0.29 | 0.49 | (0.20) | — | (0.20) | $12.79 | 4.00% | 0.46% | 1.57% | 16% | $239,410 | ||
2011 | $10.90 | 0.17 | 1.59 | 1.76 | (0.16) | — | (0.16) | $12.50 | 16.17% | 0.46% | 1.43% | 3% | $174,230 | ||
2010 | $9.73 | 0.14 | 1.14 | 1.28 | (0.11) | — | (0.11) | $10.90 | 13.21% | 0.46% | 1.29% | 8% | $103,002 | ||
92
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
C Class | |||||||||||||||
2014 | $14.46 | 0.19 | 1.21 | 1.40 | (0.18) | (0.15) | (0.33) | $15.53 | 9.76% | 1.20% | 1.32% | 5% | $4,586 | ||
2013 | $12.76 | 0.08 | 1.82 | 1.90 | (0.09) | (0.11) | (0.20) | $14.46 | 15.05% | 1.20% | 0.62% | 3% | $3,572 | ||
2012 | $12.46 | 0.09 | 0.32 | 0.41 | (0.11) | — | (0.11) | $12.76 | 3.31% | 1.21% | 0.82% | 16% | $1,396 | ||
2011 | $10.87 | 0.07 | 1.59 | 1.66 | (0.07) | — | (0.07) | $12.46 | 15.25% | 1.21% | 0.68% | 3% | $630 | ||
2010(6) | $10.74 | 0.01 | 0.12 | 0.13 | — | — | — | $10.87 | 1.21% | 1.21%(7) | 0.29%(7) | 8%(8) | $86 | ||
R Class | |||||||||||||||
2014 | $14.49 | 0.27 | 1.21 | 1.48 | (0.26) | (0.15) | (0.41) | $15.56 | 10.30% | 0.70% | 1.82% | 5% | $182,137 | ||
2013 | $12.78 | 0.16 | 1.82 | 1.98 | (0.16) | (0.11) | (0.27) | $14.49 | 15.69% | 0.70% | 1.12% | 3% | $141,978 | ||
2012 | $12.48 | 0.16 | 0.31 | 0.47 | (0.17) | — | (0.17) | $12.78 | 3.83% | 0.71% | 1.32% | 16% | $101,164 | ||
2011 | $10.89 | 0.14 | 1.58 | 1.72 | (0.13) | — | (0.13) | $12.48 | 15.80% | 0.71% | 1.18% | 3% | $71,077 | ||
2010 | $9.72 | 0.11 | 1.15 | 1.26 | (0.09) | — | (0.09) | $10.89 | 12.93% | 0.71% | 1.04% | 8% | $35,276 | ||
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 of operating expenses to average net assets does not include any fees and expenses of the underlying funds. |
(4) | Ratio was less than 0.005%. |
(5) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. |
(6) | March 1, 2010 (commencement of sale) through July 31, 2010. |
(7) | Annualized. |
(8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
93
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
One Choice 2040 Portfolio | |||||||||||||||
Investor Class | |||||||||||||||
2014 | $11.87 | 0.30 | 1.07 | 1.37 | (0.28) | (0.10) | (0.38) | $12.86 | 11.63% | 0.20% | 2.38% | 4% | $392,199 | ||
2013 | $10.31 | 0.18 | 1.62 | 1.80 | (0.16) | (0.08) | (0.24) | $11.87 | 17.83% | 0.20% | 1.58% | 5% | $234,285 | ||
2012 | $10.11 | 0.17 | 0.23 | 0.40 | (0.17) | (0.03) | (0.20) | $10.31 | 4.05% | 0.21% | 1.71% | 20% | $107,290 | ||
2011 | $8.72 | 0.14 | 1.39 | 1.53 | (0.14) | —(4) | (0.14) | $10.11 | 17.57% | 0.21% | 1.57% | 5% | $44,433 | ||
2010 | $7.75 | 0.12 | 0.95 | 1.07 | (0.09) | (0.01) | (0.10) | $8.72 | 13.80% | 0.21% | 1.40% | 3% | $41,985 | ||
Institutional Class | |||||||||||||||
2014 | $11.88 | 0.32 | 1.07 | 1.39 | (0.30) | (0.10) | (0.40) | $12.87 | 11.84% | 0.00%(5) | 2.58% | 4% | $243,924 | ||
2013 | $10.32 | 0.20 | 1.62 | 1.82 | (0.18) | (0.08) | (0.26) | $11.88 | 18.05% | 0.00%(5) | 1.78% | 5% | $156,913 | ||
2012 | $10.12 | 0.19 | 0.23 | 0.42 | (0.19) | (0.03) | (0.22) | $10.32 | 4.26% | 0.01% | 1.91% | 20% | $70,149 | ||
2011 | $8.73 | 0.18 | 1.37 | 1.55 | (0.16) | —(4) | (0.16) | $10.12 | 17.78% | 0.01% | 1.77% | 5% | $78,468 | ||
2010 | $7.75 | 0.14 | 0.96 | 1.10 | (0.11) | (0.01) | (0.12) | $8.73 | 14.16% | 0.01% | 1.60% | 3% | $22,593 | ||
A Class(6) | |||||||||||||||
2014 | $11.85 | 0.26 | 1.07 | 1.33 | (0.24) | (0.10) | (0.34) | $12.84 | 11.36% | 0.45% | 2.13% | 4% | $230,764 | ||
2013 | $10.30 | 0.15 | 1.62 | 1.77 | (0.14) | (0.08) | (0.22) | $11.85 | 17.45% | 0.45% | 1.33% | 5% | $176,014 | ||
2012 | $10.10 | 0.15 | 0.22 | 0.37 | (0.14) | (0.03) | (0.17) | $10.30 | 3.80% | 0.46% | 1.46% | 20% | $110,524 | ||
2011 | $8.71 | 0.13 | 1.37 | 1.50 | (0.11) | —(4) | (0.11) | $10.10 | 17.29% | 0.46% | 1.32% | 5% | $69,629 | ||
2010 | $7.73 | 0.09 | 0.97 | 1.06 | (0.07) | (0.01) | (0.08) | $8.71 | 13.68% | 0.46% | 1.15% | 3% | $42,212 | ||
94
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
C Class | |||||||||||||||
2014 | $11.82 | 0.17 | 1.06 | 1.23 | (0.15) | (0.10) | (0.25) | $12.80 | 10.46% | 1.20% | 1.38% | 4% | $2,939 | ||
2013 | $10.26 | 0.07 | 1.62 | 1.69 | (0.05) | (0.08) | (0.13) | $11.82 | 16.71% | 1.20% | 0.58% | 5% | $2,049 | ||
2012 | $10.07 | 0.06 | 0.23 | 0.29 | (0.07) | (0.03) | (0.10) | $10.26 | 2.93% | 1.21% | 0.71% | 20% | $559 | ||
2011 | $8.68 | 0.05 | 1.38 | 1.43 | (0.04) | —(4) | (0.04) | $10.07 | 16.46% | 1.21% | 0.57% | 5% | $215 | ||
2010(7) | $8.60 | —(4) | 0.08 | 0.08 | — | — | — | $8.68 | 0.93% | 1.21%(8) | 0.12%(8) | 3%(9) | $68 | ||
R Class | |||||||||||||||
2014 | $11.83 | 0.23 | 1.07 | 1.30 | (0.21) | (0.10) | (0.31) | $12.82 | 11.10% | 0.70% | 1.88% | 4% | $94,677 | ||
2013 | $10.28 | 0.12 | 1.62 | 1.74 | (0.11) | (0.08) | (0.19) | $11.83 | 17.18% | 0.70% | 1.08% | 5% | $64,687 | ||
2012 | $10.08 | 0.12 | 0.23 | 0.35 | (0.12) | (0.03) | (0.15) | $10.28 | 3.54% | 0.71% | 1.21% | 20% | $36,524 | ||
2011 | $8.69 | 0.10 | 1.38 | 1.48 | (0.09) | —(4) | (0.09) | $10.08 | 17.03% | 0.71% | 1.07% | 5% | $18,752 | ||
2010 | $7.72 | 0.08 | 0.95 | 1.03 | (0.05) | (0.01) | (0.06) | $8.69 | 13.28% | 0.71% | 0.90% | 3% | $7,773 | ||
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 of operating expenses to average net assets does not include any fees and expenses of the underlying funds. |
(4) | Per-share amount was less than $0.005. |
(5) | Ratio was less than 0.005%. |
(6) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. |
(7) | March 1, 2010 (commencement of sale) through July 31, 2010. |
(8) | Annualized. |
(9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
95
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
One Choice 2045 Portfolio | |||||||||||||||
Investor Class | |||||||||||||||
2014 | $14.92 | 0.37 | 1.44 | 1.81 | (0.36) | (0.15) | (0.51) | $16.22 | 12.34% | 0.20% | 2.38% | 4% | $523,828 | ||
2013 | $12.84 | 0.22 | 2.17 | 2.39 | (0.21) | (0.10) | (0.31) | $14.92 | 18.94% | 0.20% | 1.58% | 3% | $355,470 | ||
2012 | $12.59 | 0.20 | 0.26 | 0.46 | (0.21) | — | (0.21) | $12.84 | 3.76% | 0.21% | 1.66% | 14% | $222,501 | ||
2011 | $10.82 | 0.18 | 1.76 | 1.94 | (0.17) | — | (0.17) | $12.59 | 17.98% | 0.21% | 1.51% | 2% | $157,711 | ||
2010 | $9.59 | 0.14 | 1.22 | 1.36 | (0.13) | — | (0.13) | $10.82 | 14.16% | 0.21% | 1.35% | 9% | $113,447 | ||
Institutional Class | |||||||||||||||
2014 | $14.94 | 0.40 | 1.44 | 1.84 | (0.39) | (0.15) | (0.54) | $16.24 | 12.55% | 0.00%(4) | 2.58% | 4% | $281,772 | ||
2013 | $12.86 | 0.25 | 2.17 | 2.42 | (0.24) | (0.10) | (0.34) | $14.94 | 19.15% | 0.00%(4) | 1.78% | 3% | $196,557 | ||
2012 | $12.60 | 0.23 | 0.26 | 0.49 | (0.23) | — | (0.23) | $12.86 | 4.04% | 0.01% | 1.86% | 14% | $116,894 | ||
2011 | $10.83 | 0.21 | 1.75 | 1.96 | (0.19) | — | (0.19) | $12.60 | 18.10% | 0.01% | 1.71% | 2% | $110,477 | ||
2010 | $9.60 | 0.16 | 1.22 | 1.38 | (0.15) | — | (0.15) | $10.83 | 14.48% | 0.01% | 1.55% | 9% | $57,836 | ||
A Class(5) | |||||||||||||||
2014 | $14.89 | 0.34 | 1.43 | 1.77 | (0.32) | (0.15) | (0.47) | $16.19 | 12.08% | 0.45% | 2.13% | 4% | $283,598 | ||
2013 | $12.82 | 0.18 | 2.17 | 2.35 | (0.18) | (0.10) | (0.28) | $14.89 | 18.59% | 0.45% | 1.33% | 3% | $231,054 | ||
2012 | $12.56 | 0.18 | 0.26 | 0.44 | (0.18) | — | (0.18) | $12.82 | 3.59% | 0.46% | 1.41% | 14% | $147,197 | ||
2011 | $10.80 | 0.15 | 1.75 | 1.90 | (0.14) | — | (0.14) | $12.56 | 17.63% | 0.46% | 1.26% | 2% | $104,426 | ||
2010 | $9.57 | 0.11 | 1.22 | 1.33 | (0.10) | — | (0.10) | $10.80 | 13.90% | 0.46% | 1.10% | 9% | $56,695 | ||
96
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
C Class | |||||||||||||||
2014 | $14.86 | 0.20 | 1.44 | 1.64 | (0.20) | (0.15) | (0.35) | $16.15 | 11.18% | 1.20% | 1.38% | 4% | $1,993 | ||
2013 | $12.79 | 0.10 | 2.15 | 2.25 | (0.08) | (0.10) | (0.18) | $14.86 | 17.72% | 1.20% | 0.58% | 3% | $1,220 | ||
2012 | $12.53 | 0.08 | 0.27 | 0.35 | (0.09) | — | (0.09) | $12.79 | 2.82% | 1.21% | 0.66% | 14% | $633 | ||
2011 | $10.78 | 0.03 | 1.77 | 1.80 | (0.05) | — | (0.05) | $12.53 | 16.68% | 1.21% | 0.51% | 2% | $363 | ||
2010(6) | $10.67 | 0.01 | 0.10 | 0.11 | — | — | — | $10.78 | 1.03% | 1.21%(7) | 0.14%(7) | 9%(8) | $59 | ||
R Class | |||||||||||||||
2014 | $14.88 | 0.30 | 1.42 | 1.72 | (0.28) | (0.15) | (0.43) | $16.17 | 11.73% | 0.70% | 1.88% | 4% | $117,392 | ||
2013 | $12.81 | 0.15 | 2.17 | 2.32 | (0.15) | (0.10) | (0.25) | $14.88 | 18.30% | 0.70% | 1.08% | 3% | $91,776 | ||
2012 | $12.55 | 0.14 | 0.27 | 0.41 | (0.15) | — | (0.15) | $12.81 | 3.33% | 0.71% | 1.16% | 14% | $62,208 | ||
2011 | $10.79 | 0.12 | 1.75 | 1.87 | (0.11) | — | (0.11) | $12.55 | 17.35% | 0.71% | 1.01% | 2% | $39,540 | ||
2010 | $9.56 | 0.09 | 1.21 | 1.30 | (0.07) | — | (0.07) | $10.79 | 13.63% | 0.71% | 0.85% | 9% | $17,327 | ||
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 of operating expenses to average net assets does not include any fees and expenses of the underlying funds. |
(4) | Ratio was less than 0.005%. |
(5) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. |
(6) | March 1, 2010 (commencement of sale) through July 31, 2010. |
(7) | Annualized. |
(8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
97
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
One Choice 2050 Portfolio | |||||||||||||||
Investor Class | |||||||||||||||
2014 | $11.77 | 0.29 | 1.17 | 1.46 | (0.28) | (0.10) | (0.38) | $12.85 | 12.59% | 0.20% | 2.35% | 4% | $214,823 | ||
2013 | $10.07 | 0.16 | 1.77 | 1.93 | (0.15) | (0.08) | (0.23) | $11.77 | 19.51% | 0.20% | 1.51% | 4% | $115,834 | ||
2012 | $9.88 | 0.14 | 0.21 | 0.35 | (0.14) | (0.02) | (0.16) | $10.07 | 3.67% | 0.21% | 1.53% | 12% | $48,553 | ||
2011 | $8.45 | 0.13 | 1.42 | 1.55 | (0.12) | —(4) | (0.12) | $9.88 | 18.35% | 0.21% | 1.37% | 6% | $20,035 | ||
2010 | $7.46 | 0.10 | 0.97 | 1.07 | (0.08) | —(4) | (0.08) | $8.45 | 14.33% | 0.22% | 1.17% | 13% | $10,225 | ||
Institutional Class | |||||||||||||||
2014 | $11.79 | 0.32 | 1.17 | 1.49 | (0.31) | (0.10) | (0.41) | $12.87 | 12.79% | 0.00%(5) | 2.55% | 4% | $135,635 | ||
2013 | $10.09 | 0.19 | 1.76 | 1.95 | (0.17) | (0.08) | (0.25) | $11.79 | 19.72% | 0.00%(5) | 1.71% | 4% | $95,469 | ||
2012 | $9.90 | 0.17 | 0.20 | 0.37 | (0.16) | (0.02) | (0.18) | $10.09 | 3.87% | 0.01% | 1.73% | 12% | $49,284 | ||
2011 | $8.46 | 0.15 | 1.43 | 1.58 | (0.14) | —(4) | (0.14) | $9.90 | 18.69% | 0.01% | 1.57% | 6% | $30,796 | ||
2010 | $7.47 | 0.12 | 0.96 | 1.08 | (0.09) | —(4) | (0.09) | $8.46 | 14.54% | 0.02% | 1.37% | 13% | $8,482 | ||
A Class(6) | |||||||||||||||
2014 | $11.75 | 0.26 | 1.17 | 1.43 | (0.25) | (0.10) | (0.35) | $12.83 | 12.32% | 0.45% | 2.10% | 4% | $131,709 | ||
2013 | $10.06 | 0.14 | 1.76 | 1.90 | (0.13) | (0.08) | (0.21) | $11.75 | 19.13% | 0.45% | 1.26% | 4% | $91,012 | ||
2012 | $9.87 | 0.13 | 0.20 | 0.33 | (0.12) | (0.02) | (0.14) | $10.06 | 3.41% | 0.46% | 1.28% | 12% | $55,073 | ||
2011 | $8.44 | 0.11 | 1.41 | 1.52 | (0.09) | —(4) | (0.09) | $9.87 | 18.08% | 0.46% | 1.12% | 6% | $29,685 | ||
2010 | $7.45 | 0.07 | 0.97 | 1.04 | (0.05) | —(4) | (0.05) | $8.44 | 14.06% | 0.47% | 0.92% | 13% | $13,463 | ||
98
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
C Class | |||||||||||||||
2014 | $11.73 | 0.19 | 1.14 | 1.33 | (0.16) | (0.10) | (0.26) | $12.80 | 11.40% | 1.20% | 1.35% | 4% | $1,983 | ||
2013 | $10.04 | 0.06 | 1.76 | 1.82 | (0.05) | (0.08) | (0.13) | $11.73 | 18.26% | 1.20% | 0.51% | 4% | $1,748 | ||
2012 | $9.85 | 0.05 | 0.21 | 0.26 | (0.05) | (0.02) | (0.07) | $10.04 | 2.64% | 1.21% | 0.53% | 12% | $530 | ||
2011 | $8.42 | 0.05 | 1.40 | 1.45 | (0.02) | —(4) | (0.02) | $9.85 | 17.23% | 1.21% | 0.37% | 6% | $117 | ||
2010(7) | $8.35 | —(4) | 0.07 | 0.07 | — | — | — | $8.42 | 0.84% | 1.22%(8) | 0.06%(8) | 13%(9) | $32 | ||
R Class | |||||||||||||||
2014 | $11.74 | 0.23 | 1.16 | 1.39 | (0.22) | (0.10) | (0.32) | $12.81 | 11.96% | 0.70% | 1.85% | 4% | $47,771 | ||
2013 | $10.05 | 0.11 | 1.76 | 1.87 | (0.10) | (0.08) | (0.18) | $11.74 | 18.84% | 0.70% | 1.01% | 4% | $32,896 | ||
2012 | $9.86 | 0.10 | 0.21 | 0.31 | (0.10) | (0.02) | (0.12) | $10.05 | 3.16% | 0.71% | 1.03% | 12% | $15,933 | ||
2011 | $8.43 | 0.09 | 1.41 | 1.50 | (0.07) | —(4) | (0.07) | $9.86 | 17.80% | 0.71% | 0.87% | 6% | $7,660 | ||
2010 | $7.44 | 0.06 | 0.96 | 1.02 | (0.03) | —(4) | (0.03) | $8.43 | 13.79% | 0.73% | 0.66% | 13% | $3,076 | ||
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 of operating expenses to average net assets does not include any fees and expenses of the underlying funds. |
(4) | Per-share amount was less than $0.005. |
(5) | Ratio was less than 0.005%. |
(6) | Prior to March 1, 2010, the A Class was referred to as the Advisor Class. |
(7) | March 1, 2010 (commencement of sale) through July 31, 2010. |
(8) | Annualized. |
(9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended July 31, 2010. |
See Notes to Financial Statements.
99
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
One Choice 2055 Portfolio | |||||||||||||||
Investor Class | |||||||||||||||
2014 | $12.02 | 0.30 | 1.24 | 1.54 | (0.28) | (0.06) | (0.34) | $13.22 | 12.87% | 0.20% | 2.22% | 8% | $33,357 | ||
2013 | $10.19 | 0.15 | 1.85 | 2.00 | (0.14) | (0.03) | (0.17) | $12.02 | 19.86% | 0.20% | 1.36% | 13% | $14,959 | ||
2012 | $9.92 | 0.12 | 0.25 | 0.37 | (0.10) | — | (0.10) | $10.19 | 3.78% | 0.20% | 1.25% | 44% | $3,920 | ||
2011(4) | $10.00 | 0.03 | (0.11) | (0.08) | — | — | — | $9.92 | (0.80)% | 0.20%(5) | 0.86%(5) | 12% | $390 | ||
Institutional Class | |||||||||||||||
2014 | $12.03 | 0.28 | 1.28 | 1.56 | (0.30) | (0.06) | (0.36) | $13.23 | 13.09% | 0.00%(6) | 2.42% | 8% | $43,147 | ||
2013 | $10.20 | 0.18 | 1.84 | 2.02 | (0.16) | (0.03) | (0.19) | $12.03 | 20.08% | 0.00%(6) | 1.56% | 13% | $10,951 | ||
2012 | $9.92 | 0.14 | 0.25 | 0.39 | (0.11) | — | (0.11) | $10.20 | 4.04% | 0.00%(6) | 1.45% | 44% | $3,939 | ||
2011(4) | $10.00 | 0.04 | (0.12) | (0.08) | — | — | — | $9.92 | (0.80)% | 0.00%(5)(6) | 1.06%(5) | 12% | $379 | ||
A Class | |||||||||||||||
2014 | $12.00 | 0.26 | 1.23 | 1.49 | (0.24) | (0.06) | (0.30) | $13.19 | 12.52% | 0.45% | 1.97% | 8% | $31,787 | ||
2013 | $10.17 | 0.13 | 1.85 | 1.98 | (0.12) | (0.03) | (0.15) | $12.00 | 19.59% | 0.45% | 1.11% | 13% | $14,138 | ||
2012 | $9.91 | 0.10 | 0.24 | 0.34 | (0.08) | — | (0.08) | $10.17 | 3.49% | 0.45% | 1.00% | 44% | $3,253 | ||
2011(4) | $10.00 | 0.02 | (0.11) | (0.09) | — | — | — | $9.91 | (0.90)% | 0.45%(5) | 0.61%(5) | 12% | $21 | ||
100
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
C Class | |||||||||||||||
2014 | $11.95 | 0.17 | 1.23 | 1.40 | (0.15) | (0.06) | (0.21) | $13.14 | 11.72% | 1.20% | 1.22% | 8% | $428 | ||
2013 | $10.13 | 0.05 | 1.84 | 1.89 | (0.04) | (0.03) | (0.07) | $11.95 | 18.66% | 1.20% | 0.36% | 13% | $215 | ||
2012 | $9.88 | 0.02 | 0.26 | 0.28 | (0.03) | — | (0.03) | $10.13 | 2.81% | 1.20% | 0.25% | 44% | $87 | ||
2011(4) | $10.00 | (0.01) | (0.11) | (0.12) | — | — | — | $9.88 | (1.20)% | 1.20%(5) | (0.14)%(5) | 12% | $5 | ||
R Class | |||||||||||||||
2014 | $11.99 | 0.23 | 1.23 | 1.46 | (0.21) | (0.06) | (0.27) | $13.18 | 12.25% | 0.70% | 1.72% | 8% | $13,999 | ||
2013 | $10.16 | 0.09 | 1.86 | 1.95 | (0.09) | (0.03) | (0.12) | $11.99 | 19.31% | 0.70% | 0.86% | 13% | $6,983 | ||
2012 | $9.90 | 0.06 | 0.26 | 0.32 | (0.06) | — | (0.06) | $10.16 | 3.29% | 0.70% | 0.75% | 44% | $1,108 | ||
2011(4) | $10.00 | 0.01 | (0.11) | (0.10) | — | — | — | $9.90 | (1.00)% | 0.70%(5) | 0.36%(5) | 12% | $6 | ||
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 of operating expenses to average net assets does not include any fees and expenses of the underlying funds. |
(4) | March 31, 2011 (fund inception) through July 31, 2011. |
(5) | Annualized. |
(6) | Ratio was less than 0.005%. |
See Notes to Financial Statements.
101
Report of Independent Registered Public Accounting Firm |
To the Board of Directors and Shareholders of
American Century Asset Allocation Portfolios, Inc.:
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of One Choice In Retirement Portfolio, One Choice 2015 Portfolio, One Choice 2020 Portfolio, One Choice 2025 Portfolio, One Choice 2030 Portfolio, One Choice 2035 Portfolio, One Choice 2040 Portfolio, One Choice 2045 Portfolio, One Choice 2050 Portfolio, and One Choice 2055 Portfolio, ten of the portfolios constituting American Century Asset Allocation Portfolios, Inc. (the “Funds”), as of July 31, 2014, and the related statements 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, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2014, by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective Funds as of July 31, 2014, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Kansas City, Missouri
September 17, 2014
102
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 by December 31 of the year in which they reach their 75th birthday.
Mr. 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). Mr. Fink is treated as an “interested person” because of his recent employment with ACC and American Century Services, LLC (ACS). 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 ACS, and 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 Mr. Thomas, 15) 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 | |||||
Thomas A. Brown (1940) | Director | Since 1980 | Managing Member, Associated Investments, LLC (real estate investment company); Brown Cascade Properties, LLC (real estate investment company) (2001 to 2009) | 73 | None |
Andrea C. Hall (1945) | Director | Since 1997 | Retired | 73 | None |
Jan M. Lewis (1957) | Director | Since 2011 | Retired; President and Chief Executive Officer, Catholic Charities of Northeast Kansas (human services organization) (2006 to 2013) | 73 | None |
James A. Olson (1942) | Director and Chairman of the Board | Since 2007 (Chairman since 2014) | Member, Plaza Belmont LLC (private equity fund manager) | 73 | Saia, Inc. (2002 to 2012) and EPR Properties (2003 to 2013) |
M. Jeannine Strandjord (1945) | Director | Since 1994 | Retired | 73 | Euronet Worldwide Inc.; Charming Shoppes, Inc. (2006 to 2010); and DST Systems Inc. (1996 to 2012) |
103
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 | |||||
John R. Whitten (1946) | Director | Since 2008 | Retired | 73 | Rudolph Technologies, Inc. |
Stephen E. Yates (1948) | Director | Since 2012 | Retired; Executive Vice President, Technology & Operations, KeyCorp. (computer services) (2004 to 2010) | 73 | Applied Industrial Technologies, Inc. (2001 to 2010) |
Interested Directors | |||||
Barry Fink (1955) | Director | Since 2012 | Retired; Executive Vice President, ACC (September 2007 to February 2013); President, ACS (October 2007 to February 2013); Chief Operating Officer, ACC (September 2007 to November 2012) | 73 | None |
Jonathan S. Thomas (1963) | Director and President | Since 2007 | President and Chief Executive Officer, ACC (March 2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries | 118 | BioMed Valley Discoveries, Inc. |
The Statement of Additional Information has additional information about the funds’ directors and is available without charge, upon request, by calling 1-800-345-2021.
104
Officers
The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for each of the 15 investment companies in the American Century family of funds, unless otherwise noted. 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 |
Jonathan S. Thomas (1963) | Director and President since 2007 | President and Chief Executive Officer, ACC (March 2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries |
Amy D. Shelton (1964) | Chief Compliance Officer since 2014 | Chief Compliance Officer, American Century funds, (March 2014 to present); Chief Compliance Officer, ACIM (February 2014 to present); Chief Compliance Officer, ACIS (October 2009 to present); Vice President, Client Interactions and Marketing, ACIS (February 2013 to January 2014); Director, Client Interactions and Marketing, ACIS (June 2007 to January 2013). Also serves as Vice President, ACIS |
Charles A. Etherington (1957) | General Counsel since 2007 and Senior Vice President since 2006 | Attorney, ACC (February 1994 to present); Vice President, ACC (November 2005 to present); General Counsel, ACC (March 2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS |
C. Jean Wade (1964) | Vice President, Treasurer and Chief Financial Officer since 2012 | Vice President, ACS (February 2000 to present) |
Robert J. Leach (1966) | Vice President since 2006 and Assistant Treasurer since 2012 | Vice President, ACS (February 2000 to present) |
David H. Reinmiller (1963) | Vice President since 2000 | Attorney, ACC (January 1994 to present); Associate General Counsel, ACC (January 2001 to present). Also serves as Vice President, ACIM and ACS |
Ward D. Stauffer (1960) | Secretary since 2005 | Attorney, ACC (June 2003 to present) |
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Approval of Management Agreements |
At a meeting held on June 18, 2014, the Funds’ Board of Directors unanimously approved the renewal of the management agreements pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for each of the Funds. Under Section 15(c) of the Investment Company Act, contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of the funds’ directors (the “Directors”), including a majority of the independent Directors, each year.
Prior to its consideration of the renewal of each management agreement, the Board requested and reviewed extensive data and information compiled by the Advisor and certain independent providers of evaluation data concerning the Funds and the services provided to the Funds by the Advisor. This review was in addition to the oversight and evaluation undertaken by the Board and its committees on a continuous basis and the information received was supplemental to the extensive information that the Board and its committees receive and consider throughout the year.
In connection with its consideration of the renewal of each Fund’s management agreement, the Board’s review and evaluation of the services provided by the Advisor included, but was not limited to, the following:
• | the nature, extent, and quality of investment management, shareholder services, and other services provided by the Advisor to each Fund; |
• | the wide range of other programs and services the Advisor provides to each Fund and its shareholders on a routine and non-routine basis; |
• | each Fund’s investment performance compared to appropriate benchmarks and/or a peer group of other mutual funds with similar investment objectives and strategies; |
• | the cost of owning each Fund compared to the cost of owning similar funds; |
• | the Advisor’s compliance policies, procedures, and regulatory experience; |
• | financial data showing the cost of services provided to the Funds, the profitability of each Fund to the Advisor, and the overall profitability of the Advisor; |
• | possible economies of scale associated with the Advisor’s management of the Funds and other accounts under its management; |
• | the services provided and charges to other investment management clients of the Advisor |
• | acquired fund fees and expenses; and |
• | any collateral benefits derived by the Advisor from the management of the Funds. |
In keeping with its practice, the Board held two in-person meetings and one telephonic meeting to review and discuss the information provided. The independent Directors also 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, and evaluated such information for each 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. In deciding to renew the management agreements, the Board based its decision on a number of factors, including the following:
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Nature, Extent and Quality of Services — Generally. Under the management agreements, the Advisor is responsible for providing or arranging for all services necessary for the operation of each Fund. The Board noted that under the management agreements, the Advisor provides or arranges at its own expense a wide variety of services including:
• | constructing and designing each Fund |
• | portfolio research and security selection |
• | initial capitalization/funding |
• | securities trading |
• | Fund administration |
• | custody of Fund assets |
• | daily valuation of each Fund’s portfolio |
• | 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 Rule 12b-1 plans) |
The Board noted that many of these services have expanded over time both in terms of 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 Funds is quite complex and allows fund shareholders access to professional money management, instant diversification of their investments within an asset class, 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 each Fund in accordance with its investment objectives and approved 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 (portfolio managers, analysts, research assistants, and securities traders) 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, regularly reviews investment performance information for each Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Directors also review detailed performance information during the management agreement approval process. If performance concerns are identified with respect to a fund, the Fund receives special reviews until performance improves, during which the Board discusses with the Advisor the reasons for such results (e.g., market conditions, security selection) and any efforts being undertaken to improve performance. The performance for One Choice In Retirement Portfolio, One Choice 2015 Portfolio, One Choice 2020 Portfolio, One Choice 2025 Portfolio, One Choice 2030 Portfolio, and One Choice 2035 Portfolio was above each Fund’s respective benchmark for the one-, three-, and five-year periods reviewed by the Board. The performance for One Choice 2040 Portfolio, One Choice 2045 Portfolio, and One Choice 2050 Portfolio was above each Fund’s respective benchmark for the one- and three-year periods and below each fund’s respective benchmark for the five-year period reviewed by the Board. The performance for One Choice 2055 Portfolio was above its benchmark for the one-year period reviewed by the Board. Taking all these factors into consideration, the Board found the investment management services provided to each Fund by the Advisor to be satisfactory and consistent with the management agreement.
Shareholder and Other Services. Under the management agreements, the Advisor provides the Funds with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through various committees of the Board, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to,
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information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction (as measured by external as well as internal sources), technology support, new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities. Certain aspects of shareholder and transfer agency service level efficiency and the quality of securities trading activities are measured by independent third party providers and are presented in comparison to other fund groups not managed by the Advisor. The Board found the services provided by the Advisor to each Fund under the management agreements 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 Funds, its profitability in managing each Fund (pre- and post-distribution), its overall profitability, and its financial condition. The Directors have reviewed with the Advisor the methodology used to prepare this financial information. The financial information regarding the Advisor is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services to the Funds, and the reasonableness of the current management agreement. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Funds.
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 each 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 appropriately sharing economies of scale through its competitive fee structure, offering competitive fees from fund inception, and through reinvestment in its business to provide shareholders additional content and services.
Comparison to Other Funds’ Fees. The Funds invest their non-cash assets entirely in other American Century Investments funds. The Funds do not pay an investment advisory fee to the Advisor. Rather, each Fund pays the Advisor an administrative fee and indirectly bears its pro rata share of the expenses incurred by the underlying funds. Each of the underlying funds pay 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 expenses, taxes, interest, extraordinary expenses, and the 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 Rule 12b-1 under the 1940 Act. The Board concluded that the administrative fee and other underlying fund expenses incurred by each Fund were 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 Funds. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of each Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Funds were reasonable by comparison.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the existence of collateral benefits the Advisor may receive as a result of its relationship with the Funds. They concluded that the Advisor’s primary business is managing mutual 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. The Board noted that the Advisor receives proprietary research from broker-dealers that execute fund portfolio transactions and
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concluded that this research is likely to benefit fund shareholders. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Funds, at least in part, due to its existing infrastructure built to serve the fund complex. The Board concluded, however, that the assets of those other clients are not material to the analysis and, where applicable, may be included with the assets of certain underlying funds 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 Funds’ 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 Funds 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 each 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, concluded that the management agreement between each Fund and the Advisor is fair and reasonable in light of the services provided and should be renewed.
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Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
Distributions you receive from 403(b), 457 and qualified plans 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 funds’ investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the funds is available without charge, upon request, by calling 1-800-345-2021. It is also available on the “About Us” page of American Century Investments’ website at americancentury.com 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 the “About Us” page at americancentury.com. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The funds’ Forms N-Q are available on the SEC’s website at sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The funds also make their complete
schedule of portfolio holdings for the most recent quarter of their fiscal year available on their website at americancentury.com and, upon request, by calling 1-800-345-2021.
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Other Tax Information
The funds hereby designate up to the maximum amount allowable as qualified dividend income for the fiscal year ended July 31, 2014.
For corporate taxpayers, the funds hereby designate the following, or up to the maximum amount allowable, of ordinary income distributions paid during the fiscal year ended July 31, 2014 as qualified for the corporate dividends received deduction.
One Choice In Retirement Portfolio | One Choice 2015 Portfolio | One Choice 2020 Portfolio | One Choice 2025 Portfolio | One Choice 2030 Portfolio |
$3,790,183 | $11,972,530 | $11,248,125 | $19,943,507 | $11,673,632 |
One Choice 2035 Portfolio | One Choice 2040 Portfolio | One Choice 2045 Portfolio | One Choice 2050 Portfolio | One Choice 2055 Portfolio |
$16,685,898 | $9,593,404 | $12,966,260 | $5,404,343 | $950,134 |
The funds hereby designate the following as qualified short-term capital gain distributions for purposes of Internal Revenue Code Section 871 for the fiscal year ended July 31, 2014.
One Choice In Retirement Portfolio | One Choice 2015 Portfolio | One Choice 2020 Portfolio | One Choice 2025 Portfolio | One Choice 2030 Portfolio |
$480,134 | $1,189,811 | $326,187 | $721,362 | $228,933 |
One Choice 2035 Portfolio | One Choice 2040 Portfolio | One Choice 2045 Portfolio | One Choice 2050 Portfolio | One Choice 2055 Portfolio |
$415,302 | $241,253 | $209,821 | $129,762 | $32,381 |
The funds hereby designate the following, or up to the maximum amount allowable, as long-term capital gain distributions for the fiscal year ended July 31, 2014.
One Choice In Retirement Portfolio | One Choice 2015 Portfolio | One Choice 2020 Portfolio | One Choice 2025 Portfolio | One Choice 2030 Portfolio |
$6,278,839 | $17,399,487 | $8,118,107 | $17,873,524 | $8,404,245 |
One Choice 2035 Portfolio | One Choice 2040 Portfolio | One Choice 2045 Portfolio | One Choice 2050 Portfolio | One Choice 2055 Portfolio |
$14,298,263 | $6,129,116 | $9,940,285 | $3,346,492 | $297,313 |
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For the fiscal year ended July 31, 2014, the funds intend to pass through to shareholders the following, or up to the maximum amount allowable, as a foreign tax credit which represents taxes paid on income derived from sources within foreign countries or possessions of the United States. During the fiscal year ended July 31, 2014, the funds earned the following income derived from foreign sources.
Foreign Tax Credit | Foreign Source Income | |||||||
Amount | Per Outstanding Share | Amount | Per Outstanding Share | |||||
One Choice In Retirement Portfolio | $ | 47,600 | 0.0010 | $ | 386,192 | 0.0080 | ||
One Choice 2015 Portfolio | $ | 108,916 | 0.0012 | $ | 876,289 | 0.0095 | ||
One Choice 2020 Portfolio | $ | 130,361 | 0.0012 | $ | 1,022,636 | 0.0093 | ||
One Choice 2025 Portfolio | $ | 264,042 | 0.0018 | $ | 2,036,222 | 0.0137 | ||
One Choice 2030 Portfolio | $ | 184,565 | 0.0017 | $ | 1,422,801 | 0.0133 | ||
One Choice 2035 Portfolio | $ | 278,717 | 0.0026 | $ | 2,134,569 | 0.0197 | ||
One Choice 2040 Portfolio | $ | 161,284 | 0.0021 | $ | 1,225,359 | 0.0163 | ||
One Choice 2045 Portfolio | $ | 215,239 | 0.0029 | $ | 1,615,909 | 0.0217 | ||
One Choice 2050 Portfolio | $ | 89,111 | 0.0022 | $ | 659,180 | 0.0159 | ||
One Choice 2055 Portfolio | $ | 15,058 | 0.0016 | $ | 110,566 | 0.0119 | ||
The funds utilized the following earnings and profits distributed to shareholders on redemption of shares as part of the dividends paid deduction (tax equalization).
One Choice In Retirement Portfolio | One Choice 2015 Portfolio | One Choice 2020 Portfolio | One Choice 2025 Portfolio | One Choice 2030 Portfolio |
$1,665,858 | $4,765,036 | — | — | — |
One Choice 2035 Portfolio | One Choice 2040 Portfolio | One Choice 2045 Portfolio | One Choice 2050 Portfolio | One Choice 2055 Portfolio |
— | — | — | — | — |
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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 Services for the Deaf | 711 | |
American Century Asset Allocation Portfolios, 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. | ||
©2014 American Century Proprietary Holdings, Inc. All rights reserved. CL-ANN-83138 1409 | ||
ANNUAL REPORT | JULY 31, 2014 |
One ChoiceSM In Retirement Portfolio R6
One ChoiceSM 2015 Portfolio R6
One ChoiceSM 2020 Portfolio R6
One ChoiceSM 2025 Portfolio R6
One ChoiceSM 2030 Portfolio R6
One ChoiceSM 2035 Portfolio R6
One ChoiceSM 2040 Portfolio R6
One ChoiceSM 2045 Portfolio R6
One ChoiceSM 2050 Portfolio R6
One ChoiceSM 2055 Portfolio R6
Table of Contents |
President's Letter | |
Performance | |
Portfolio Commentary | |
Portfolio Characteristics | |
Shareholder Fee Examples | |
Schedules of Investments | |
Statements of Assets and Liabilities | |
Statements of Operations | |
Statements 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 |
| Dear Investor: Thank you for reviewing this annual report for the 12 months ended July 31, 2014. It provides investment performance and portfolio information for the reporting period, plus longer-term historical performance data. Annual reports remain important vehicles for conveying information about fund returns, including market and economic factors that affected performance during the reporting period. For additional, updated investment and market insights, we encourage you to visit our website, americancentury.com. |
Jonathan Thomas | |
Aggressive Monetary Policies, as Investors Sought Risk and Yield, Boosted Returns
Stimulative monetary policies and expectations of longer-term economic improvement, interspersed with concerns about nearer-term weaker-than-expected economic data and geopolitical conflicts, helped drive financial market returns during the reporting period. We believe the combination of longer-term optimism about global economic growth, low costs of capital, and central bank purchases of fixed-income securities helped persuade investors to seek risk and yield. Broad stock market index returns were largely in the 10-20% range across the spectrum of developed versus emerging and large-cap versus small-cap markets. The S&P 500 Index, the MSCI EAFE Index, and the MSCI Emerging Markets Index advanced 16.94%, 15.07%, and 15.32%, respectively.
Bond performance was also generally solid, which was a surprise, given pre-2014 expectations for rising inflation and interest rates. Inflation showed signs of increasing, but remained contained, and interest rates actually fell in many markets. According to Bloomberg, the 10-year U.S. Treasury yield edged downward from 2.59% to 2.56% during the 12 months, while the 30-year U.S. Treasury yield fell from 3.65% to 3.32%. This “bull market flattening” of the U.S. Treasury yield curve helped produce a total return of 9.74% for the 30-year U.S. Treasury bond, according to Barclays. Indices that tracked U.S. high-yield and investment-grade corporate bonds and mortgage-backed securities also generally outperformed the broad Barclays U.S. Aggregate Bond Index, which advanced 3.97%.
Looking ahead, we see signs of sustained economic growth for the remainder of 2014, but headwinds persist. In the U.S., which was supposed to be an economic growth leader this year, housing market momentum has slowed, inflation and interest rates could rise, and economic growth and U.S. employment levels remain subpar compared with past post-recession periods. In this environment, we continue to believe in a disciplined, diversified, long-term investment approach, using professionally managed stock and bond portfolios—as appropriate—for meeting financial goals. We appreciate your continued trust in us.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Performance |
Total Returns as of July 31, 2014 | ||||
Average Annual Returns | ||||
Ticker Symbol | 1 year | Since Inception | Inception Date | |
One Choice In Retirement Portfolio R6 - R6 Class | ARDTX | 8.46% | 8.46% | 7/31/13 |
S&P Target Date Retirement Income Index(1) | — | 6.27% | 6.27% | — |
One Choice 2015 Portfolio R6 - R6 Class | ARNDX | 8.70% | 8.70% | 7/31/13 |
S&P Target Date To 2015 Index(1) | — | 7.68% | 7.68% | — |
One Choice 2020 Portfolio R6 - R6 Class | ARBDX | 9.24% | 9.24% | 7/31/13 |
S&P Target Date To 2020 Index(1) | — | 8.61% | 8.61% | — |
One Choice 2025 Portfolio R6 - R6 Class | ARWDX | 10.04% | 10.04% | 7/31/13 |
S&P Target Date To 2025 Index(1) | — | 9.47% | 9.47% | — |
One Choice 2030 Portfolio R6 - R6 Class | ARCUX | 10.48% | 10.48% | 7/31/13 |
S&P Target Date To 2030 Index(1) | — | 10.28% | 10.28% | — |
One Choice 2035 Portfolio R6 - R6 Class | ARLDX | 11.18% | 11.18% | 7/31/13 |
S&P Target Date To 2035 Index(1) | — | 11.08% | 11.08% | — |
One Choice 2040 Portfolio R6 - R6 Class | ARDUX | 12.13% | 12.13% | 7/31/13 |
S&P Target Date To 2040 Index(1) | — | 11.75% | 11.75% | — |
One Choice 2045 Portfolio R6 - R6 Class | ARDOX | 12.62% | 12.62% | 7/31/13 |
S&P Target Date To 2045 Index(1) | — | 12.36% | 12.36% | — |
One Choice 2050 Portfolio R6 - R6 Class | ARFEX | 12.88% | 12.88% | 7/31/13 |
S&P Target Date To 2050 Index(1) | — | 12.91% | 12.91% | — |
One Choice 2055 Portfolio R6 - R6 Class | AREUX | 13.22% | 13.22% | 7/31/13 |
S&P Target Date To 2055+ Index(1) | — | 13.48% | 13.48% | — |
Russell 3000 Index | — | 16.37% | 16.37% | — |
Barclays U.S. Aggregate Bond Index | — | 3.97% | 3.97% | — |
(1) Effective November 2014, the index will change from the Russell 3000 Index and the Barclays U.S. Aggregate Bond Index to the S&P Target Date indices, which the funds' investment advisor believes is more reflective of the funds' strategy. The funds' investment process will not change. | ||||
The Russell 3000 Index represents approximately 98% of the investable U.S. equity market and provides a broad measure of equity performance. The Barclays U.S. Aggregate Bond Index represents the U.S. investment-grade fixed-rate bond market and provides a broad measure of bond market performance. Performance for these indices is provided for reference only. Neither index is intended to represent the composition of the portfolio, which invests in a mix of equity and fixed-income securities. (See the Schedule of Investments for each portfolio’s asset allocations as of the date of this report.)
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses that reduce returns, while the total returns of the indices do not.
3
Growth of $10,000 Over Life of One Choice In Retirement Portfolio R6 |
$10,000 investment made July 31, 2013 |
Value on July 31, 2014 | |
R6 Class — $10,846 | |
S&P Target Date Retirement Income Index — $10,627 | |
Russell 3000 Index — $11,637 | |
Barclays U.S. Aggregate Bond Index — $10,397 | |
*From July 31, 2013, the R6 Class’s inception date. Not annualized.
Growth of $10,000 Over Life of One Choice 2015 Portfolio R6 |
$10,000 investment made July 31, 2013 |
Value on July 31, 2014 | |
R6 Class — $10,870 | |
S&P Target Date To 2015 Index — $10,768 | |
Russell 3000 Index — $11,637 | |
Barclays U.S. Aggregate Bond Index — $10,397 | |
*From July 31, 2013, the R6 Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses that reduce returns, while the total returns of the indices do not.
4
Growth of $10,000 Over Life of One Choice 2020 Portfolio R6 |
$10,000 investment made July 31, 2013 |
Value on July 31, 2014 | |
R6 Class — $10,924 | |
S&P Target Date To 2020 Index — $10,861 | |
Russell 3000 Index — $11,637 | |
Barclays U.S. Aggregate Bond Index — $10,397 | |
*From July 31, 2013, the R6 Class’s inception date. Not annualized.
Growth of $10,000 Over Life of One Choice 2025 Portfolio R6 |
$10,000 investment made July 31, 2013 |
Value on July 31, 2014 | |
R6 Class — $11,004 | |
S&P Target Date To 2025 Index — $10,947 | |
Russell 3000 Index — $11,637 | |
Barclays U.S. Aggregate Bond Index — $10,397 | |
*From July 31, 2013, the R6 Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses that reduce returns, while the total returns of the indices do not.
5
Growth of $10,000 Over Life of One Choice 2030 Portfolio R6 |
$10,000 investment made July 31, 2013 |
Value on July 31, 2014 | |
R6 Class — $11,048 | |
S&P Target Date To 2030 Index — $11,028 | |
Russell 3000 Index — $11,637 | |
Barclays U.S. Aggregate Bond Index — $10,397 | |
*From July 31, 2013, the R6 Class’s inception date. Not annualized.
Growth of $10,000 Over Life of One Choice 2035 Portfolio R6 |
$10,000 investment made July 31, 2013 |
Value on July 31, 2014 | |
R6 Class — $11,118 | |
S&P Target Date To 2035 Index — $11,108 | |
Russell 3000 Index — $11,637 | |
Barclays U.S. Aggregate Bond Index — $10,397 | |
*From July 31, 2013, the R6 Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses that reduce returns, while the total returns of the indices do not.
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Growth of $10,000 Over Life of One Choice 2040 Portfolio R6 |
$10,000 investment made July 31, 2013 |
Value on July 31, 2014 | |
R6 Class — $11,213 | |
S&P Target Date To 2040 Index — $11,175 | |
Russell 3000 Index — $11,637 | |
Barclays U.S. Aggregate Bond Index — $10,397 | |
*From July 31, 2013, the R6 Class’s inception date. Not annualized.
Growth of $10,000 Over Life of One Choice 2045 Portfolio R6 |
$10,000 investment made July 31, 2013 |
Value on July 31, 2014 | |
R6 Class — $11,262 | |
S&P Target Date To 2045 Index — $11,236 | |
Russell 3000 Index — $11,637 | |
Barclays U.S. Aggregate Bond Index — $10,397 | |
*From July 31, 2013, the R6 Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses that reduce returns, while the total returns of the indices do not.
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Growth of $10,000 Over Life of One Choice 2050 Portfolio R6 |
$10,000 investment made July 31, 2013 |
Value on July 31, 2014 | |
R6 Class — $11,288 | |
S&P Target Date To 2050 Index — $11,291 | |
Russell 3000 Index — $11,637 | |
Barclays U.S. Aggregate Bond Index — $10,397 | |
*From July 31, 2013, the R6 Class’s inception date. Not annualized.
Growth of $10,000 Over Life of One Choice 2055 Portfolio R6 |
$10,000 investment made July 31, 2013 |
Value on July 31, 2014 | |
R6 Class — $11,322 | |
S&P Target Date To 2055+ Index — $11,348 | |
Russell 3000 Index — $11,637 | |
Barclays U.S. Aggregate Bond Index — $10,397 | |
*From July 31, 2013, the R6 Class’s inception date. Not annualized.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses that reduce returns, while the total returns of the indices do not.
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Total Annual Fund Operating Expenses | |
One Choice In Retirement Portfolio R6 — R6 Class | 0.52% |
One Choice 2015 Portfolio R6 — R6 Class | 0.53% |
One Choice 2020 Portfolio R6 — R6 Class | 0.55% |
One Choice 2025 Portfolio R6 — R6 Class | 0.57% |
One Choice 2030 Portfolio R6 — R6 Class | 0.59% |
One Choice 2035 Portfolio R6 — R6 Class | 0.61% |
One Choice 2040 Portfolio R6 — R6 Class | 0.64% |
One Choice 2045 Portfolio R6 — R6 Class | 0.67% |
One Choice 2050 Portfolio R6 — R6 Class | 0.68% |
One Choice 2055 Portfolio R6 — R6 Class | 0.69% |
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. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The performance of the portfolios is dependent on the performance of their underlying American Century Investments funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio’s asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.
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. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses that reduce returns, while the total returns of the indices do not.
9
Portfolio Commentary |
Portfolio Managers: Scott Wittman, Rich Weiss, Scott Wilson, Radu Gabudean, and David MacEwen
In December 2013, David MacEwen, Senior Vice President, became Co-Chief Investment Officer and chairman of the firm’s Asset Allocation Committee.
Performance Summary
Each of the ten One Choice Target Date Portfolios R6 advanced for the fiscal year ended July 31, 2014, with returns ranging from 13.22% for the One Choice 2055 Portfolio R6 to 8.46% for the One Choice In Retirement Portfolio R6 (see pages 3-8 for more detailed performance information). The gains for the 12-month period reflected solid returns of both global equity and fixed-income markets, which rallied on signs of continued global economic growth and accommodative monetary policies enacted by central banks around the globe.
Because of the Portfolios’ strategic exposure to a variety of asset classes, a review of the financial markets helps explain much of their performance.
Market Overview
Global equity markets appreciated during the fiscal year, driven in large part by continued signs of steady, albeit slow, growth. A commitment by central banks around the world to create an environment stimulative of growth while avoiding deflation supported equities. Although the U.S. Federal Reserve (the Fed) began gradual tapering of its monthly quantitative easing (QE) program, continued Fed support drove markets as broad U.S. indices staged record-breaking rallies several times during the period. U.S. equities took a breather during an unusually harsh winter that pressured the already-tepid economic recovery. Slowdowns were seen in several key areas including sales of consumer discretionary items such as appliances and autos, as well as construction, real estate, and energy. Flaring political tensions in several regions, including Russia/Ukraine and the Middle East, also dampened equity returns. A spring/summer rebound sent markets to record highs on the heels of encouraging industrial production, consumer data, and the lowest unemployment level in nearly six years. Large-cap U.S. equities led both the small- and mid-cap segments, and despite a stark divergence in performance during the winter, growth stocks finished the period ahead of their value counterparts. Broad non-U.S. markets, both developed and emerging, also produced strong results, marginally trailing those of the U.S. but ending the period with double-digit gains.
The U.S. bond market produced positive returns for the 12-months ending July 31, 2014, driven in large part by the rally that ushered in 2014. Much of the period was characterized by a heightened appetite for risk and demand for yield as investors gravitated toward higher-yielding securities. Bond yields fluctuated throughout the period, rising during the early part of the fiscal year due to uncertainty surrounding the beginning of the end of the Fed’s stimulus program. Weaker-than-expected economic activity coupled with geopolitical tensions at the beginning of 2014 helped drive down U.S. Treasury yields, which declined again following an unexpectedly large first-quarter GDP revision. Given the risk-on environment, high-yield corporate bonds and longer-duration/maturity securities were among the best performers, although all sectors of the U.S. bond market advanced. Particular strength was seen in long-term U.S. Treasuries, municipal bonds, and high-yield bonds, which led investment grade bonds. Non-U.S. bonds also ended the period with strong results, outperforming those of the U.S. as the European Central Bank eased monetary policy and Japan continued aggressive easing efforts.
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Fund Information
Each Portfolio is a “fund of funds” that invests in other American Century Investments mutual funds to achieve its investment objective and target asset allocation. (See pages 13-14 for the specific underlying fund allocations for each Portfolio.) A Portfolio’s target date is the approximate year when investors plan to retire and likely would stop making new investments in the fund. The principal value of the investment is not guaranteed at any time, including at the target date. One Choice In Retirement Portfolio R6 is generally intended for investors near, at, or in retirement. There is no guarantee that an investment in any of the funds will provide adequate income at or through an investor’s retirement.
Each target-dated Portfolio seeks the highest total return consistent with its asset mix. Over time, the asset mix and weightings are adjusted to be more conservative. In general, as the target year approaches, each Portfolio’s allocation becomes more conservative by decreasing the allocation to stock funds and increasing the allocation to bond and money market funds. By the time each Portfolio reaches its target date, its target asset mix will become fixed and match that of One Choice In Retirement Portfolio R6, which seeks current income and capital appreciation.
Portfolio Performance
Within the Portfolios, each equity fund, both U.S. and non-U.S., produced strong positive returns for the 12-month period. NT Core Equity Plus Fund generated the best absolute performance, producing a return of nearly 19%. Other leading absolute performers included NT Equity Growth Fund and NT Growth Fund, although the latter underperformed its underlying fund benchmark. NT Small Company Fund generated strong outperformance of its underlying fund benchmark and contributed significantly to results across all Portfolios. Underperformance among equity funds, relative to their underlying fund benchmarks, came from NT International Growth Fund, NT Heritage Fund, and NT Large Company Value Fund, all of which dampened overall Portfolio results.
Each of the Portfolios’ fixed-income components also advanced. Top absolute performance in the fixed-income space came from High-Yield Fund and International Bond Fund (held by Portfolios nearing their target dates), although unsuccessful security selection in those funds led them to underperform their underlying fund benchmarks. NT Diversified Bond Fund, the largest fixed-income segment in the Portfolios, modestly outperformed its benchmark for the 12-month period, contributing positively to performance.
A Look Ahead
We believe that global economic recovery will continue to progress, albeit at a slower pace than during prior post-recessionary periods, and we expect it to stay the course through the remainder of 2014. Recent indicators such as improvements in small business and consumer confidence suggest a sustainable rebound in the U.S., and economic growth is likely to further benefit from the recovering labor and housing markets. The Fed is expected to continue its tapering of QE as labor market conditions improve which is likely to lead to moderately higher interest rates. Despite mixed data, Europe seems poised to continue its rebound, especially those countries and sectors that have made meaningful progress in structural reform. While accommodative monetary policy is expected to remain in place in the eurozone, interest rates in the U.K. could rise if economic recovery proceeds at the pace seen recently. Asia remains an area to carefully monitor given a number of unknowns including the impact of Japan’s recent tax hike and the long-term effectiveness of economic reforms on the country’s recovery. Likewise, we are closely watching the effects of government reform programs on China’s growth. Though a continuation of political instability as well as the potential for rising inflation and interest rates could lead to heightened levels of market volatility, resilient global demand and continued accommodative monetary policy are supportive for emerging markets, which have seen a pickup in exports, appear attractive on
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valuations, and could gain further momentum. Interest rates are likely to remain relatively low and rise only gradually, and tame inflation combined with stimulative monetary policies are supportive of global growth and financial markets.
Although we do not make tactical allocation shifts within the One Choice Target Date Portfolios R6, the teams managing the underlying funds may make adjustments based on where they see the greatest opportunities. For example, within the NT Diversified Bond Fund, the largest component of the Portfolios’ fixed-income allocation, the fixed income team remains underweight to Treasuries and government agencies in favor of spread (non-Treasury) sectors, including overweight positions in corporate credit and the securitized sector. These market dynamics, and the constantly changing investment environment, reinforce our belief that broad-based diversification among asset classes and within asset classes is essential to long-term investing success.
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Portfolio Characteristics |
Underlying Fund Allocations(1) as a % of net assets as of July 31, 2014 | ||||||||||
One Choice In Retirement Portfolio R6 | One Choice 2015 Portfolio R6 | One Choice 2020 Portfolio R6 | One Choice 2025 Portfolio R6 | One Choice 2030 Portfolio R6 | ||||||
Equity | ||||||||||
NT Core Equity Plus Fund | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.2 | % |
NT Equity Growth Fund | 9.9 | % | 9.9 | % | 9.5 | % | 9.2 | % | 9.2 | % |
NT Growth Fund | 6.4 | % | 6.6 | % | 7.8 | % | 8.9 | % | 10.6 | % |
NT Heritage Fund | 2.5 | % | 2.6 | % | 3.6 | % | 4.5 | % | 5.0 | % |
NT Large Company Value Fund | 10.9 | % | 10.8 | % | 11.1 | % | 11.2 | % | 11.8 | % |
NT Mid Cap Value Fund | 4.0 | % | 4.1 | % | 4.8 | % | 5.5 | % | 5.2 | % |
NT Small Company Fund | 1.9 | % | 1.9 | % | 2.0 | % | 2.3 | % | 3.3 | % |
Real Estate Fund | 1.0 | % | 1.0 | % | 1.3 | % | 1.5 | % | 1.8 | % |
NT Emerging Markets Fund | — | 0.1 | % | 1.1 | % | 2.2 | % | 2.8 | % | |
NT International Growth Fund | 5.0 | % | 5.0 | % | 5.9 | % | 6.8 | % | 8.3 | % |
Total Equity | 44.6 | % | 45.0 | % | 50.1 | % | 55.1 | % | 61.2 | % |
Fixed Income | ||||||||||
High-Yield Fund | 3.8 | % | 3.8 | % | 3.7 | % | 3.4 | % | 3.1 | % |
Inflation-Adjusted Bond Fund | 1.5 | % | 1.7 | % | 3.0 | % | 4.2 | % | 5.0 | % |
NT Diversified Bond Fund | 26.8 | % | 26.8 | % | 25.6 | % | 24.6 | % | 22.1 | % |
Short Duration Inflation Protection Bond Fund | 6.2 | % | 5.9 | % | 4.4 | % | 2.8 | % | 1.3 | % |
International Bond Fund | 7.0 | % | 6.9 | % | 5.9 | % | 4.8 | % | 2.3 | % |
Total Fixed Income | 45.3 | % | 45.1 | % | 42.6 | % | 39.8 | % | 33.8 | % |
Premium Money Market Fund | 10.1 | % | 9.9 | % | 7.3 | % | 5.1 | % | 5.0 | % |
Other Assets and Liabilities | —(2) | —(2) | —(2) | —(2) | —(2) | |||||
(1) | Underlying fund investments represent R6 Class for all funds, except Institutional Class for NT Core Equity Plus Fund, NT Equity Growth Fund, NT Small Company Fund, Inflation-Adjusted Bond Fund and Investor Class for Premium Money Market Fund. |
(2) | Category is less than 0.05% of total net assets. |
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Underlying Fund Allocations(1) as a % of net assets as of July 31, 2014 | ||||||||||
One Choice 2035 Portfolio R6 | One Choice 2040 Portfolio R6 | One Choice 2045 Portfolio R6 | One Choice 2050 Portfolio R6 | One Choice 2055 Portfolio R6 | ||||||
Equity | ||||||||||
NT Core Equity Plus Fund | 3.2 | % | 3.5 | % | 4.4 | % | 4.5 | % | 4.5 | % |
NT Equity Growth Fund | 9.3 | % | 10.1 | % | 10.3 | % | 10.2 | % | 10.7 | % |
NT Growth Fund | 12.5 | % | 13.5 | % | 14.4 | % | 14.7 | % | 15.2 | % |
NT Heritage Fund | 5.4 | % | 6.3 | % | 7.2 | % | 7.2 | % | 7.5 | % |
NT Large Company Value Fund | 12.5 | % | 13.5 | % | 14.4 | % | 14.9 | % | 15.4 | % |
NT Mid Cap Value Fund | 5.4 | % | 6.4 | % | 7.3 | % | 7.3 | % | 7.5 | % |
NT Small Company Fund | 4.2 | % | 4.1 | % | 3.9 | % | 4.6 | % | 5.0 | % |
Real Estate Fund | 2.0 | % | 2.3 | % | 2.5 | % | 2.8 | % | 3.0 | % |
NT Emerging Markets Fund | 3.4 | % | 4.2 | % | 5.3 | % | 6.1 | % | 6.5 | % |
NT International Growth Fund | 9.4 | % | 9.8 | % | 10.2 | % | 10.0 | % | 9.5 | % |
Total Equity | 67.3 | % | 73.7 | % | 79.9 | % | 82.3 | % | 84.8 | % |
Fixed Income | ||||||||||
High-Yield Fund | 2.8 | % | 2.4 | % | 2.0 | % | 1.7 | % | 1.5 | % |
Inflation-Adjusted Bond Fund | 5.5 | % | 4.8 | % | 4.0 | % | 3.5 | % | 3.0 | % |
NT Diversified Bond Fund | 19.5 | % | 16.8 | % | 14.1 | % | 12.5 | % | 10.7 | % |
Short Duration Inflation Protection Bond Fund | 0.1 | % | — | — | — | — | ||||
International Bond Fund | — | — | — | — | — | |||||
Total Fixed Income | 27.9 | % | 24.0 | % | 20.1 | % | 17.7 | % | 15.2 | % |
Premium Money Market Fund | 4.8 | % | 2.3 | % | — | — | — | |||
Other Assets and Liabilities | —(2) | —(2) | —(2) | —(2) | —(2) | |||||
(1) | Underlying fund investments represent R6 Class for all funds, except Institutional Class for NT Core Equity Plus Fund, NT Equity Growth Fund, NT Small Company Fund, Inflation-Adjusted Bond Fund and Investor Class for Premium Money Market Fund. |
(2) | Category is less than 0.05% of total net assets. |
14
Shareholder Fee Examples |
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. As a shareholder in the underlying American Century Investments funds, your fund will indirectly bear its pro rata share of the expenses incurred by the underlying funds. These expenses are not included in the fund’s annualized expense ratio or the expenses paid during the period. These expenses are, however, included in the effective expenses paid during the period.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from February 1, 2014 to July 31, 2014.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or Institutional Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual 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 $12.50 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.
15
Beginning Account Value 2/1/14 | Ending Account Value 7/31/14 | Expenses Paid During Period(1)2/1/14 - 7/31/14 | Annualized Expense Ratio(1) | Effective Expenses Paid During Period(2)2/1/14 - 7/31/14 | Effective Annualized Expense Ratio(2) | |
One Choice In Retirement Portfolio R6 | ||||||
Actual | ||||||
R6 Class | $1,000 | $1,048.40 | $0.00 | 0.00%(3) | $2.54 | 0.50% |
Hypothetical | ||||||
R6 Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $2.51 | 0.50% |
One Choice 2015 Portfolio R6 | ||||||
Actual | ||||||
R6 Class | $1,000 | $1,048.90 | $0.00 | 0.00%(3) | $2.54 | 0.50% |
Hypothetical | ||||||
R6 Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $2.51 | 0.50% |
One Choice 2020 Portfolio R6 | ||||||
Actual | ||||||
R6 Class | $1,000 | $1,052.80 | $0.00 | 0.00%(3) | $2.65 | 0.52% |
Hypothetical | ||||||
R6 Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $2.61 | 0.52% |
One Choice 2025 Portfolio R6 | ||||||
Actual | ||||||
R6 Class | $1,000 | $1,056.50 | $0.00 | 0.00%(3) | $2.75 | 0.54% |
Hypothetical | ||||||
R6 Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $2.71 | 0.54% |
One Choice 2030 Portfolio R6 | ||||||
Actual | ||||||
R6 Class | $1,000 | $1,058.40 | $0.00 | 0.00%(3) | $2.86 | 0.56% |
Hypothetical | ||||||
R6 Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $2.81 | 0.56% |
(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 181, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. The fees and expenses of the underlying American Century Investments funds in which the fund invests are not included in the class's annualized expense ratio. |
(2) | Effective expenses reflect the sum of expenses borne directly by the class plus the fund's pro rata share of the weighted average expense ratio of the underlying funds in which it invests. The effective annualized expense ratio combines the class's annualized expense ratio and the annualized weighted average expense ratio of the underlying funds. The annualized weighted average expense ratio of the underlying funds for the one-half year period reflects the actual expense ratio of each underlying fund from its most recent shareholder report, annualized and weighted for the fund's relative average investment therein during the period. |
(3) | Other expenses, which include directors' fees and expenses, did not exceed 0.005%. |
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Beginning Account Value 2/1/14 | Ending Account Value 7/31/14 | Expenses Paid During Period(1)2/1/14 - 7/31/14 | Annualized Expense Ratio(1) | Effective Expenses Paid During Period(2)2/1/14 - 7/31/14 | Effective Annualized Expense Ratio(2) | |
One Choice 2035 Portfolio R6 | ||||||
Actual | ||||||
R6 Class | $1,000 | $1,062.20 | $0.00 | 0.00%(3) | $2.97 | 0.58% |
Hypothetical | ||||||
R6 Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $2.91 | 0.58% |
One Choice 2040 Portfolio R6 | ||||||
Actual | ||||||
R6 Class | $1,000 | $1,066.90 | $0.00 | 0.00%(3) | $3.13 | 0.61% |
Hypothetical | ||||||
R6 Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $3.06 | 0.61% |
One Choice 2045 Portfolio R6 | ||||||
Actual | ||||||
R6 Class | $1,000 | $1,070.70 | $0.00 | 0.00%(3) | $3.29 | 0.64% |
Hypothetical | ||||||
R6 Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $3.21 | 0.64% |
One Choice 2050 Portfolio R6 | ||||||
Actual | ||||||
R6 Class | $1,000 | $1,072.70 | $0.00 | 0.00%(3) | $3.34 | 0.65% |
Hypothetical | ||||||
R6 Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $3.26 | 0.65% |
One Choice 2055 Portfolio R6 | ||||||
Actual | ||||||
R6 Class | $1,000 | $1,075.10 | $0.00 | 0.00%(3) | $3.45 | 0.67% |
Hypothetical | ||||||
R6 Class | $1,000 | $1,024.80 | $0.00 | 0.00%(3) | $3.36 | 0.67% |
(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 181, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. The fees and expenses of the underlying American Century Investments funds in which the fund invests are not included in the class's annualized expense ratio. |
(2) | Effective expenses reflect the sum of expenses borne directly by the class plus the fund's pro rata share of the weighted average expense ratio of the underlying funds in which it invests. The effective annualized expense ratio combines the class's annualized expense ratio and the annualized weighted average expense ratio of the underlying funds. The annualized weighted average expense ratio of the underlying funds for the one-half year period reflects the actual expense ratio of each underlying fund from its most recent shareholder report, annualized and weighted for the fund's relative average investment therein during the period. |
(3) | Other expenses, which include directors' fees and expenses, did not exceed 0.005%. |
17
Schedules of Investments |
JULY 31, 2014
One Choice In Retirement Portfolio R6
Shares | Value | ||||
MUTUAL FUNDS(1) — 100.0% | |||||
DOMESTIC EQUITY FUNDS — 39.6% | |||||
NT Core Equity Plus Fund Institutional Class | 22,075 | $ | 341,065 | ||
NT Equity Growth Fund Institutional Class | 88,264 | 1,136,842 | |||
NT Growth Fund R6 Class | 45,873 | 738,548 | |||
NT Heritage Fund R6 Class | 22,181 | 283,692 | |||
NT Large Company Value Fund R6 Class | 99,516 | 1,249,918 | |||
NT Mid Cap Value Fund R6 Class | 34,997 | 456,714 | |||
NT Small Company Fund Institutional Class | 21,653 | 225,405 | |||
Real Estate Fund R6 Class | 4,191 | 113,917 | |||
4,546,101 | |||||
DOMESTIC FIXED INCOME FUNDS — 38.3% | |||||
High-Yield Fund R6 Class | 71,538 | 438,528 | |||
Inflation-Adjusted Bond Fund Institutional Class | 14,485 | 173,671 | |||
NT Diversified Bond Fund R6 Class | 284,982 | 3,083,503 | |||
Short Duration Inflation Protection Bond Fund R6 Class | 68,003 | 707,909 | |||
4,403,611 | |||||
MONEY MARKET FUNDS — 10.1% | |||||
Premium Money Market Fund Investor Class | 1,161,123 | 1,161,123 | |||
INTERNATIONAL FIXED INCOME FUNDS — 7.0% | |||||
International Bond Fund R6 Class | 56,641 | 811,100 | |||
INTERNATIONAL EQUITY FUNDS — 5.0% | |||||
NT International Growth Fund R6 Class | 49,128 | 569,888 | |||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $11,219,196) | 11,491,823 | ||||
OTHER ASSETS AND LIABILITIES† | (3 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 11,491,820 | |||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
18
JULY 31, 2014
One Choice 2015 Portfolio R6
Shares | Value | ||||
MUTUAL FUNDS(1) — 100.0% | |||||
DOMESTIC EQUITY FUNDS — 39.9% | |||||
NT Core Equity Plus Fund Institutional Class | 43,388 | $ | 670,352 | ||
NT Equity Growth Fund Institutional Class | 172,622 | 2,223,367 | |||
NT Growth Fund R6 Class | 91,803 | 1,478,022 | |||
NT Heritage Fund R6 Class | 45,839 | 586,277 | |||
NT Large Company Value Fund R6 Class | 194,543 | 2,443,455 | |||
NT Mid Cap Value Fund R6 Class | 71,134 | 928,293 | |||
NT Small Company Fund Institutional Class | 42,135 | 438,622 | |||
Real Estate Fund R6 Class | 8,554 | 232,502 | |||
9,000,890 | |||||
DOMESTIC FIXED INCOME FUNDS — 38.2% | |||||
High-Yield Fund R6 Class | 139,095 | 852,650 | |||
Inflation-Adjusted Bond Fund Institutional Class | 31,336 | 375,716 | |||
NT Diversified Bond Fund R6 Class | 557,704 | 6,034,357 | |||
Short Duration Inflation Protection Bond Fund R6 Class | 128981 | 1,342,696 | |||
8,605,419 | |||||
MONEY MARKET FUNDS — 9.9% | |||||
Premium Money Market Fund Investor Class | 2,223,050 | 2,223,050 | |||
INTERNATIONAL FIXED INCOME FUNDS — 6.9% | |||||
International Bond Fund R6 Class | 108,782 | 1,557,755 | |||
INTERNATIONAL EQUITY FUNDS — 5.1% | |||||
NT Emerging Markets Fund R6 Class | 2,723 | 30,011 | |||
NT International Growth Fund R6 Class | 96,149 | 1,115,333 | |||
1,145,344 | |||||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $22,027,280) | 22,532,458 | ||||
OTHER ASSETS AND LIABILITIES† | (7 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 22,532,451 | |||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
19
JULY 31, 2014
One Choice 2020 Portfolio R6
Shares | Value | ||||
MUTUAL FUNDS(1) — 100.0% | |||||
DOMESTIC EQUITY FUNDS — 43.1% | |||||
NT Core Equity Plus Fund Institutional Class | 80,923 | $ | 1,250,258 | ||
NT Equity Growth Fund Institutional Class | 310,945 | 4,004,969 | |||
NT Growth Fund R6 Class | 203,907 | 3,282,909 | |||
NT Heritage Fund R6 Class | 118,458 | 1,515,078 | |||
NT Large Company Value Fund R6 Class | 372,212 | 4,674,979 | |||
NT Mid Cap Value Fund R6 Class | 156,882 | 2,047,314 | |||
NT Small Company Fund Institutional Class | 79,519 | 827,789 | |||
Real Estate Fund R6 Class | 19,666 | 534,525 | |||
18,137,821 | |||||
DOMESTIC FIXED INCOME FUNDS — 36.7% | |||||
High-Yield Fund R6 Class | 251,715 | 1,543,011 | |||
Inflation-Adjusted Bond Fund Institutional Class | 105,671 | 1,266,992 | |||
NT Diversified Bond Fund R6 Class | 997,298 | 10,790,760 | |||
Short Duration Inflation Protection Bond Fund R6 Class | 175,991 | 1,832,065 | |||
15,432,828 | |||||
MONEY MARKET FUNDS — 7.3% | |||||
Premium Money Market Fund Investor Class | 3,082,320 | 3,082,320 | |||
INTERNATIONAL EQUITY FUNDS — 7.0% | |||||
NT Emerging Markets Fund R6 Class | 42,826 | 471,944 | |||
NT International Growth Fund R6 Class | 211,793 | 2,456,800 | |||
2,928,744 | |||||
INTERNATIONAL FIXED INCOME FUNDS — 5.9% | |||||
International Bond Fund R6 Class | 174,880 | 2,504,281 | |||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $41,179,445) | 42,085,994 | ||||
OTHER ASSETS AND LIABILITIES† | (13 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 42,085,981 | |||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
20
JULY 31, 2014
One Choice 2025 Portfolio R6
Shares | Value | ||||
MUTUAL FUNDS(1) — 100.0% | |||||
DOMESTIC EQUITY FUNDS — 46.1% | |||||
NT Core Equity Plus Fund Institutional Class | 78,539 | $ | 1,213,420 | ||
NT Equity Growth Fund Institutional Class | 289,507 | 3,728,846 | |||
NT Growth Fund R6 Class | 225,508 | 3,630,686 | |||
NT Heritage Fund R6 Class | 142,198 | 1,818,718 | |||
NT Large Company Value Fund R6 Class | 364,942 | 4,583,666 | |||
NT Mid Cap Value Fund R6 Class | 171,382 | 2,236,541 | |||
NT Small Company Fund Institutional Class | 91,566 | 953,203 | |||
Real Estate Fund R6 Class | 22,729 | 617,785 | |||
18,782,865 | |||||
DOMESTIC FIXED INCOME FUNDS — 35.0% | |||||
High-Yield Fund R6 Class | 230,593 | 1,413,533 | |||
Inflation-Adjusted Bond Fund Institutional Class | 141,959 | 1,702,086 | |||
NT Diversified Bond Fund R6 Class | 925,631 | 10,015,327 | |||
Short Duration Inflation Protection Bond Fund R6 Class | 110,036 | 1,145,472 | |||
14,276,418 | |||||
INTERNATIONAL EQUITY FUNDS — 9.0% | |||||
NT Emerging Markets Fund R6 Class | 82,828 | 912,767 | |||
NT International Growth Fund R6 Class | 239,585 | 2,779,189 | |||
3,691,956 | |||||
MONEY MARKET FUNDS — 5.1% | |||||
Premium Money Market Fund Investor Class | 2,065,570 | 2,065,570 | |||
INTERNATIONAL FIXED INCOME FUNDS — 4.8% | |||||
International Bond Fund R6 Class | 136,056 | 1,948,325 | |||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $39,967,540) | 40,765,134 | ||||
OTHER ASSETS AND LIABILITIES† | (12 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 40,765,122 | |||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
21
JULY 31, 2014
One Choice 2030 Portfolio R6
Shares | Value | ||||
MUTUAL FUNDS(1) — 100.0% | |||||
DOMESTIC EQUITY FUNDS — 50.1% | |||||
NT Core Equity Plus Fund Institutional Class | 75,754 | $ | 1,170,394 | ||
NT Equity Growth Fund Institutional Class | 258,457 | 3,328,930 | |||
NT Growth Fund R6 Class | 240,017 | 3,864,280 | |||
NT Heritage Fund R6 Class | 140,532 | 1,797,401 | |||
NT Large Company Value Fund R6 Class | 339,981 | 4,270,159 | |||
NT Mid Cap Value Fund R6 Class | 145,417 | 1,897,697 | |||
NT Small Company Fund Institutional Class | 115,883 | 1,206,339 | |||
Real Estate Fund R6 Class | 23,856 | 648,411 | |||
18,183,611 | |||||
DOMESTIC FIXED INCOME FUNDS — 31.5% | |||||
High-Yield Fund R6 Class | 182,788 | 1,120,492 | |||
Inflation-Adjusted Bond Fund Institutional Class | 150,889 | 1,809,164 | |||
NT Diversified Bond Fund R6 Class | 739,693 | 8,003,477 | |||
Short Duration Inflation Protection Bond Fund R6 Class | 46,763 | 486,806 | |||
11,419,939 | |||||
INTERNATIONAL EQUITY FUNDS — 11.1% | |||||
NT Emerging Markets Fund R6 Class | 90,138 | 993,317 | |||
NT International Growth Fund R6 Class | 260,741 | 3,024,600 | |||
4,017,917 | |||||
MONEY MARKET FUNDS — 5.0% | |||||
Premium Money Market Fund Investor Class | 1,831,204 | 1,831,204 | |||
INTERNATIONAL FIXED INCOME FUNDS — 2.3% | |||||
International Bond Fund R6 Class | 57,554 | 824,174 | |||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $35,377,296) | 36,276,845 | ||||
OTHER ASSETS AND LIABILITIES† | (10 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 36,276,835 | |||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
22
JULY 31, 2014
One Choice 2035 Portfolio R6
Shares | Value | ||||
MUTUAL FUNDS(1) — 100.0% | |||||
DOMESTIC EQUITY FUNDS — 54.5% | |||||
NT Core Equity Plus Fund Institutional Class | 65,601 | $ | 1,013,529 | ||
NT Equity Growth Fund Institutional Class | 227,111 | 2,925,187 | |||
NT Growth Fund R6 Class | 244,768 | 3,940,772 | |||
NT Heritage Fund R6 Class | 131,469 | 1,681,487 | |||
NT Large Company Value Fund R6 Class | 313,383 | 3,936,084 | |||
NT Mid Cap Value Fund R6 Class | 129,670 | 1,692,194 | |||
NT Small Company Fund Institutional Class | 126,130 | 1,313,009 | |||
Real Estate Fund R6 Class | 23,413 | 636,360 | |||
17,138,622 | |||||
DOMESTIC FIXED INCOME FUNDS — 27.9% | |||||
High-Yield Fund R6 Class | 141,540 | 867,638 | |||
Inflation-Adjusted Bond Fund Institutional Class | 144,059 | 1,727,264 | |||
NT Diversified Bond Fund R6 Class | 567,799 | 6,143,587 | |||
Short Duration Inflation Protection Bond Fund R6 Class | 3,021 | 31,450 | |||
8,769,939 | |||||
INTERNATIONAL EQUITY FUNDS — 12.8% | |||||
NT Emerging Markets Fund R6 Class | 95,666 | 1,054,236 | |||
NT International Growth Fund R6 Class | 256168 | 2,971,553 | |||
4,025,789 | |||||
MONEY MARKET FUNDS — 4.8% | |||||
Premium Money Market Fund Investor Class | 1,518,408 | 1,518,408 | |||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $30,798,902) | 31,452,758 | ||||
OTHER ASSETS AND LIABILITIES† | (8 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 31,452,750 | |||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
23
JULY 31, 2014
One Choice 2040 Portfolio R6
Shares | Value | ||||
MUTUAL FUNDS(1) — 100.0% | |||||
DOMESTIC EQUITY FUNDS — 59.7% | |||||
NT Core Equity Plus Fund Institutional Class | 62,739 | $ | 969,325 | ||
NT Equity Growth Fund Institutional Class | 217,325 | 2,799,143 | |||
NT Growth Fund R6 Class | 234,127 | 3,769,452 | |||
NT Heritage Fund R6 Class | 137,716 | 1,761,383 | |||
NT Large Company Value Fund R6 Class | 299,738 | 3,764,709 | |||
NT Mid Cap Value Fund R6 Class | 136,552 | 1,782,005 | |||
NT Small Company Fund Institutional Class | 109,230 | 1,137,089 | |||
Real Estate Fund R6 Class | 23,296 | 633,188 | |||
16,616,294 | |||||
DOMESTIC FIXED INCOME FUNDS — 24.0% | |||||
High-Yield Fund R6 Class | 108,385 | 664,402 | |||
Inflation-Adjusted Bond Fund Institutional Class | 111,394 | 1,335,620 | |||
NT Diversified Bond Fund R6 Class | 433,718 | 4,692,825 | |||
6,692,847 | |||||
INTERNATIONAL EQUITY FUNDS — 14.0% | |||||
NT Emerging Markets Fund R6 Class | 106,591 | 1,174,629 | |||
NT International Growth Fund R6 Class | 236,014 | 2,737,767 | |||
3,912,396 | |||||
MONEY MARKET FUNDS — 2.3% | |||||
Premium Money Market Fund Investor Class | 637,624 | 637,624 | |||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $27,249,951) | 27,859,161 | ||||
OTHER ASSETS AND LIABILITIES† | (6 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 27,859,155 | |||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
24
JULY 31, 2014
One Choice 2045 Portfolio R6
Shares | Value | ||||
MUTUAL FUNDS(1) — 100.0% | |||||
DOMESTIC EQUITY FUNDS — 64.4% | |||||
NT Core Equity Plus Fund Institutional Class | 64,087 | $ | 990,139 | ||
NT Equity Growth Fund Institutional Class | 180,559 | 2,325,601 | |||
NT Growth Fund R6 Class | 203,257 | 3,272,430 | |||
NT Heritage Fund R6 Class | 128,073 | 1,638,051 | |||
NT Large Company Value Fund R6 Class | 260,625 | 3,273,446 | |||
NT Mid Cap Value Fund R6 Class | 126,420 | 1,649,783 | |||
NT Small Company Fund Institutional Class | 85,948 | 894,716 | |||
Real Estate Fund R6 Class | 21,109 | 573,749 | |||
14,617,915 | |||||
DOMESTIC FIXED INCOME FUNDS — 20.1% | |||||
High-Yield Fund R6 Class | 74,182 | 454,735 | |||
Inflation-Adjusted Bond Fund Institutional Class | 75,991 | 911,134 | |||
NT Diversified Bond Fund R6 Class | 296,244 | 3,205,361 | |||
4,571,230 | |||||
INTERNATIONAL EQUITY FUNDS — 15.5% | |||||
NT Emerging Markets Fund R6 Class | 107,799 | 1,187,941 | |||
NT International Growth Fund R6 Class | 200,079 | 2,320,911 | |||
3,508,852 | |||||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $22,112,849) | 22,697,997 | ||||
OTHER ASSETS AND LIABILITIES† | (3 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 22,697,994 | |||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
25
JULY 31, 2014
One Choice 2050 Portfolio R6
Shares | Value | ||||
MUTUAL FUNDS(1) — 100.0% | |||||
DOMESTIC EQUITY FUNDS — 66.2% | |||||
NT Core Equity Plus Fund Institutional Class | 49,286 | $ | 761,466 | ||
NT Equity Growth Fund Institutional Class | 134,417 | 1,731,289 | |||
NT Growth Fund R6 Class | 155,029 | 2,495,964 | |||
NT Heritage Fund R6 Class | 96,016 | 1,228,039 | |||
NT Large Company Value Fund R6 Class | 201,735 | 2,533,786 | |||
NT Mid Cap Value Fund R6 Class | 94,665 | 1,235,380 | |||
NT Small Company Fund Institutional Class | 74,654 | 777,147 | |||
Real Estate Fund R6 Class | 17,339 | 471,269 | |||
11,234,340 | |||||
DOMESTIC FIXED INCOME FUNDS — 17.7% | |||||
High-Yield Fund R6 Class | 48,584 | 297,817 | |||
Inflation-Adjusted Bond Fund Institutional Class | 49,691 | 595,797 | |||
NT Diversified Bond Fund R6 Class | 196,020 | 2,120,938 | |||
3,014,552 | |||||
INTERNATIONAL EQUITY FUNDS — 16.1% | |||||
NT Emerging Markets Fund R6 Class | 94,247 | 1,038,606 | |||
NT International Growth Fund R6 Class | 146,022 | 1,693,860 | |||
2,732,466 | |||||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $16,564,156) | 16,981,358 | ||||
OTHER ASSETS AND LIABILITIES† | (3 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 16,981,355 | |||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
26
JULY 31, 2014
One Choice 2055 Portfolio R6
Shares | Value | ||||
MUTUAL FUNDS(1) — 100.0% | |||||
DOMESTIC EQUITY FUNDS — 68.8% | |||||
NT Core Equity Plus Fund Institutional Class | 20,943 | $ | 323,577 | ||
NT Equity Growth Fund Institutional Class | 59,977 | 772,510 | |||
NT Growth Fund R6 Class | 68,043 | 1,095,494 | |||
NT Heritage Fund R6 Class | 42,096 | 538,409 | |||
NT Large Company Value Fund R6 Class | 88,640 | 1,113,313 | |||
NT Mid Cap Value Fund R6 Class | 41,492 | 541,468 | |||
NT Small Company Fund Institutional Class | 34,257 | 356,616 | |||
Real Estate Fund R6 Class | 7,967 | 216,545 | |||
4,957,932 | |||||
INTERNATIONAL EQUITY FUNDS — 16.0% | |||||
NT Emerging Markets Fund R6 Class | 42,431 | 467,587 | |||
NT International Growth Fund R6 Class | 59,018 | 684,614 | |||
1,152,201 | |||||
DOMESTIC FIXED INCOME FUNDS — 15.2% | |||||
High-Yield Fund R6 Class | 17,889 | 109,662 | |||
Inflation-Adjusted Bond Fund Institutional Class | 18,338 | 219,871 | |||
NT Diversified Bond Fund R6 Class | 71,069 | 768,963 | |||
1,098,496 | |||||
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $7,001,437) | 7,208,629 | ||||
OTHER ASSETS AND LIABILITIES† | (1 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 7,208,628 | |||
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Investments are funds within the American Century Investments family of funds and are considered affiliated funds. |
See Notes to Financial Statements.
27
Statements of Assets and Liabilities |
JULY 31, 2014 | |||||||||
One Choice In Retirement Portfolio R6 | One Choice 2015 Portfolio R6 | One Choice 2020 Portfolio R6 | |||||||
Assets | |||||||||
Investment securities in affiliates, at value (cost of $11,219,196, $22,027,280 and $41,179,445, respectively) | $ | 11,491,823 | $ | 22,532,458 | $ | 42,085,994 | |||
Receivable for investments sold | — | — | 27,714 | ||||||
Receivable for capital shares sold | 34,126 | 464 | 8,457 | ||||||
Distributions receivable from affiliates | 7,389 | 14,544 | 25,992 | ||||||
11,533,338 | 22,547,466 | 42,148,157 | |||||||
Liabilities | |||||||||
Payable for investments purchased | 30,016 | 15,015 | 26,005 | ||||||
Payable for capital shares redeemed | 11,502 | — | 36,171 | ||||||
41,518 | 15,015 | 62,176 | |||||||
Net Assets | $ | 11,491,820 | $ | 22,532,451 | $ | 42,085,981 | |||
R6 Class Capital Shares, $0.01 Par Value | |||||||||
Shares outstanding | 1,082,097 | 2,102,190 | 3,908,790 | ||||||
Net Asset Value Per Share | $ | 10.62 | $ | 10.72 | $ | 10.77 | |||
Net Assets Consist of: | |||||||||
Capital (par value and paid-in surplus) | $ | 11,128,963 | $ | 21,834,166 | $ | 40,706,484 | |||
Undistributed net investment income | 10,406 | 128,291 | 237,544 | ||||||
Undistributed net realized gain | 79,824 | 64,816 | 235,404 | ||||||
Net unrealized appreciation | 272,627 | 505,178 | 906,549 | ||||||
$ | 11,491,820 | $ | 22,532,451 | $ | 42,085,981 | ||||
See Notes to Financial Statements.
28
JULY 31, 2014 | |||||||||
One Choice 2025 Portfolio R6 | One Choice 2030 Portfolio R6 | One Choice 2035 Portfolio R6 | |||||||
Assets | |||||||||
Investment securities in affiliates, at value (cost of $39,967,540, $35,377,296 and $30,798,902, respectively) | $ | 40,765,134 | $ | 36,276,845 | $ | 31,452,758 | |||
Receivable for capital shares sold | 18,981 | 78,077 | 16,362 | ||||||
Distributions receivable from affiliates | 23,577 | 19,057 | 14,685 | ||||||
40,807,692 | 36,373,979 | 31,483,805 | |||||||
Liabilities | |||||||||
Payable for investments purchased | 42,084 | 97,144 | 31,026 | ||||||
Payable for capital shares redeemed | 486 | — | 29 | ||||||
42,570 | 97,144 | 31,055 | |||||||
Net Assets | $ | 40,765,122 | $ | 36,276,835 | $ | 31,452,750 | |||
R6 Class Capital Shares, $0.01 Par Value | |||||||||
Shares outstanding | 3,758,135 | 3,333,971 | 2,877,618 | ||||||
Net Asset Value Per Share | $ | 10.85 | $ | 10.88 | $ | 10.93 | |||
Net Assets Consist of: | |||||||||
Capital (par value and paid-in surplus) | $ | 39,576,404 | $ | 34,934,550 | $ | 30,411,228 | |||
Undistributed net investment income | 209,742 | 191,863 | 152,329 | ||||||
Undistributed net realized gain | 181,382 | 250,873 | 235,337 | ||||||
Net unrealized appreciation | 797,594 | 899,549 | 653,856 | ||||||
$ | 40,765,122 | $ | 36,276,835 | $ | 31,452,750 | ||||
See Notes to Financial Statements.
29
JULY 31, 2014 | |||||||||
One Choice 2040 Portfolio R6 | One Choice 2045 Portfolio R6 | One Choice 2050 Portfolio R6 | |||||||
Assets | |||||||||
Investment securities in affiliates, at value (cost of $27,249,951, $22,112,849 and $16,564,156, respectively) | $ | 27,859,161 | $ | 22,697,997 | $ | 16,981,358 | |||
Receivable for capital shares sold | 11,196 | 14,755 | 6,461 | ||||||
Distributions receivable from affiliates | 10,918 | 7,655 | 5,082 | ||||||
27,881,275 | 22,720,407 | 16,992,901 | |||||||
Liabilities | |||||||||
Payable for investments purchased | 22,100 | 22,413 | 11,537 | ||||||
Payable for capital shares redeemed | 20 | — | 9 | ||||||
22,120 | 22,413 | 11,546 | |||||||
Net Assets | $ | 27,859,155 | $ | 22,697,994 | $ | 16,981,355 | |||
R6 Class Capital Shares, $0.01 Par Value | |||||||||
Shares outstanding | 2,531,451 | 2,051,378 | 1,534,086 | ||||||
Net Asset Value Per Share | $ | 11.01 | $ | 11.06 | $ | 11.07 | |||
Net Assets Consist of: | |||||||||
Capital (par value and paid-in surplus) | $ | 26,880,705 | $ | 21,821,000 | $ | 16,349,426 | |||
Undistributed net investment income | 124,382 | 101,219 | 70,188 | ||||||
Undistributed net realized gain | 244,858 | 190,627 | 144,539 | ||||||
Net unrealized appreciation | 609,210 | 585,148 | 417,202 | ||||||
$ | 27,859,155 | $ | 22,697,994 | $ | 16,981,355 | ||||
See Notes to Financial Statements.
30
JULY 31, 2014 | |||
One Choice 2055 Portfolio R6 | |||
Assets | |||
Investment securities in affiliates, at value (cost of $7,001,437) | $ | 7,208,629 | |
Receivable for capital shares sold | 31,210 | ||
Distributions receivable from affiliates | 1,755 | ||
7,241,594 | |||
Liabilities | |||
Payable for investments purchased | 32,379 | ||
Payable for capital shares redeemed | 587 | ||
32,966 | |||
Net Assets | $ | 7,208,628 | |
R6 Class Capital Shares, $0.01 Par Value | |||
Shares outstanding | 646,087 | ||
Net Asset Value Per Share | $ | 11.16 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 6,969,066 | |
Undistributed net investment income | 26,629 | ||
Undistributed net realized gain | 5,741 | ||
Net unrealized appreciation | 207,192 | ||
$ | 7,208,628 | ||
See Notes to Financial Statements.
31
Statements of Operations |
YEAR ENDED JULY 31, 2014 | |||||||||
One Choice In Retirement Portfolio R6 | One Choice 2015 Portfolio R6 | One Choice 2020 Portfolio R6 | |||||||
Investment Income (Loss) | |||||||||
Income from Affiliates: | |||||||||
Income distributions from underlying funds | $ | 142,240 | $ | 221,909 | $ | 532,290 | |||
Expenses: | |||||||||
Directors' fees and expenses | 184 | 325 | 630 | ||||||
Net investment income (loss) | 142,056 | 221,584 | 531,660 | ||||||
Net Realized and Unrealized Gain (Loss) on Affiliates | |||||||||
Net realized gain (loss) on: | |||||||||
Sale of investments in underlying funds | (14,968 | ) | (61,772 | ) | (185,659 | ) | |||
Capital gain distributions received from underlying funds | 94,792 | 126,588 | 421,063 | ||||||
79,824 | 64,816 | 235,404 | |||||||
Change in net unrealized appreciation (depreciation) on investments in underlying funds | 272,627 | 505,178 | 906,549 | ||||||
Net realized and unrealized gain (loss) on affiliates | 352,451 | 569,994 | 1,141,953 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 494,507 | $ | 791,578 | $ | 1,673,613 | |||
See Notes to Financial Statements.
32
YEAR ENDED JULY 31, 2014 | |||||||||
One Choice 2025 Portfolio R6 | One Choice 2030 Portfolio R6 | One Choice 2035 Portfolio R6 | |||||||
Investment Income (Loss) | |||||||||
Income from Affiliates: | |||||||||
Income distributions from underlying funds | $ | 368,007 | $ | 387,067 | $ | 313,594 | |||
Expenses: | |||||||||
Directors' fees and expenses | 507 | 510 | 400 | ||||||
Net investment income (loss) | 367,500 | 386,557 | 313,194 | ||||||
Net Realized and Unrealized Gain (Loss) on Affiliates | |||||||||
Net realized gain (loss) on: | |||||||||
Sale of investments in underlying funds | (54,862 | ) | (53,056 | ) | (26,399 | ) | |||
Capital gain distributions received from underlying funds | 236,244 | 303,929 | 261,736 | ||||||
181,382 | 250,873 | 235,337 | |||||||
Change in net unrealized appreciation (depreciation) on investments in underlying funds | 797,594 | 899,549 | 653,856 | ||||||
Net realized and unrealized gain (loss) on affiliates | 978,976 | 1,150,422 | 889,193 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,346,476 | $ | 1,536,979 | $ | 1,202,387 | |||
See Notes to Financial Statements.
33
YEAR ENDED JULY 31, 2014 | |||||||||
One Choice 2040 Portfolio R6 | One Choice 2045 Portfolio R6 | One Choice 2050 Portfolio R6 | |||||||
Investment Income (Loss) | |||||||||
Income from Affiliates: | |||||||||
Income distributions from underlying funds | $ | 288,332 | $ | 226,442 | $ | 165,857 | |||
Expenses: | |||||||||
Directors' fees and expenses | 356 | 298 | 222 | ||||||
Net investment income (loss) | 287,976 | 226,144 | 165,635 | ||||||
Net Realized and Unrealized Gain (Loss) on Affiliates | |||||||||
Net realized gain (loss) on: | |||||||||
Sale of investments in underlying funds | (24,677 | ) | (19,271 | ) | (13,302 | ) | |||
Capital gain distributions received from underlying funds | 269,535 | 209,898 | 157,841 | ||||||
244,858 | 190,627 | 144,539 | |||||||
Change in net unrealized appreciation (depreciation) on investments in underlying funds | 609,210 | 585,148 | 417,202 | ||||||
Net realized and unrealized gain (loss) on affiliates | 854,068 | 775,775 | 561,741 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,142,044 | $ | 1,001,919 | $ | 727,376 | |||
See Notes to Financial Statements.
34
YEAR ENDED JULY 31, 2014 | |||
One Choice 2055 Portfolio R6 | |||
Investment Income (Loss) | |||
Income from Affiliates: | |||
Income distributions from underlying funds | $ | 31,384 | |
Expenses: | |||
Directors' fees and expenses | 74 | ||
Net investment income (loss) | 31,310 | ||
Net Realized and Unrealized Gain (Loss) on Affiliates | |||
Net realized gain (loss) on: | |||
Sale of investments in underlying funds | (1,960 | ) | |
Capital gain distributions received from underlying funds | 7,701 | ||
5,741 | |||
Change in net unrealized appreciation (depreciation) on investments in underlying funds | 207,192 | ||
Net realized and unrealized gain (loss) on affiliates | 212,933 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 244,243 | |
See Notes to Financial Statements.
35
Statements of Changes in Net Assets |
YEAR ENDED JULY 31, 2014 AND PERIOD ENDED JULY 31, 2013 | ||||||||||||
One Choice In Retirement Portfolio R6 | One Choice 2015 Portfolio R6 | |||||||||||
Increase (Decrease) in Net Assets | July 31, 2014 | July 31, 2013(1) | July 31, 2014 | July 31, 2013(1) | ||||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 142,056 | — | $ | 221,584 | — | ||||||
Net realized gain (loss) | 79,824 | — | 64,816 | — | ||||||||
Change in net unrealized appreciation (depreciation) | 272,627 | — | 505,178 | — | ||||||||
Net increase (decrease) in net assets resulting from operations | 494,507 | — | 791,578 | — | ||||||||
Distributions to Shareholders | ||||||||||||
From net investment income | (131,650) | — | (93,293) | — | ||||||||
Capital Share Transactions | ||||||||||||
Proceeds from shares sold | 13,246,418 | $ | 25,000 | 27,352,174 | $ | 25,000 | ||||||
Proceeds from reinvestment of distributions | 131,650 | — | 93,293 | — | ||||||||
Payments for shares redeemed | (2,274,105) | — | (5,636,301) | — | ||||||||
Net increase (decrease) in net assets from capital share transactions | 11,103,963 | 25,000 | 21,809,166 | 25,000 | ||||||||
Net increase (decrease) in net assets | 11,466,820 | 25,000 | 22,507,451 | 25,000 | ||||||||
Net Assets | ||||||||||||
Beginning of period | 25,000 | — | 25,000 | — | ||||||||
End of period | $ | 11,491,820 | $ | 25,000 | $ | 22,532,451 | $ | 25,000 | ||||
Undistributed net investment income | $ | 10,406 | — | $ | 128,291 | — | ||||||
Transactions in Shares of the Funds | ||||||||||||
Sold | 1,283,610 | 2,500 | 2,630,332 | 2,500 | ||||||||
Issued in reinvestment of distributions | 12,633 | — | 9,049 | — | ||||||||
Redeemed | (216,646) | — | (539,691) | — | ||||||||
Net increase (decrease) in shares of the funds | 1,079,597 | 2,500 | 2,099,690 | 2,500 | ||||||||
(1) | For the one day period ended July 31, 2013 (fund inception). |
See Notes to Financial Statements.
36
YEAR ENDED JULY 31, 2014 AND PERIOD ENDED JULY 31, 2013 | ||||||||||||
One Choice 2020 Portfolio R6 | One Choice 2025 Portfolio R6 | |||||||||||
Increase (Decrease) in Net Assets | July 31, 2014 | July 31, 2013(1) | July 31, 2014 | July 31, 2013(1) | ||||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 531,660 | — | $ | 367,500 | — | ||||||
Net realized gain (loss) | 235,404 | — | 181,382 | — | ||||||||
Change in net unrealized appreciation (depreciation) | 906,549 | — | 797,594 | — | ||||||||
Net increase (decrease) in net assets resulting from operations | 1,673,613 | — | 1,346,476 | — | ||||||||
Distributions to Shareholders | ||||||||||||
From net investment income | (294,116) | — | (157,758) | — | ||||||||
Capital Share Transactions | ||||||||||||
Proceeds from shares sold | 49,949,965 | $ | 25,000 | 43,877,013 | $ | 25,000 | ||||||
Proceeds from reinvestment of distributions | 294,116 | — | 157,758 | — | ||||||||
Payments for shares redeemed | (9,562,597) | — | (4,483,367) | — | ||||||||
Net increase (decrease) in net assets from capital share transactions | 40,681,484 | 25,000 | 39,551,404 | 25,000 | ||||||||
Net increase (decrease) in net assets | 42,060,981 | 25,000 | 40,740,122 | 25,000 | ||||||||
Net Assets | ||||||||||||
Beginning of period | 25,000 | — | 25,000 | — | ||||||||
End of period | $ | 42,085,981 | $ | 25,000 | $ | 40,765,122 | $ | 25,000 | ||||
Undistributed net investment income | $ | 237,544 | — | $ | 209,742 | — | ||||||
Transactions in Shares of the Funds | ||||||||||||
Sold | 4,797,115 | 2,500 | 4,168,621 | 2,500 | ||||||||
Issued in reinvestment of distributions | 28,444 | — | 15,169 | — | ||||||||
Redeemed | (919,269) | — | (428,155) | — | ||||||||
Net increase (decrease) in shares of the funds | 3,906,290 | 2,500 | 3,755,635 | 2,500 | ||||||||
(1) | For the one day period ended July 31, 2013 (fund inception). |
See Notes to Financial Statements.
37
YEAR ENDED JULY 31, 2014 AND PERIOD ENDED JULY 31, 2013 | ||||||||||||
One Choice 2030 Portfolio R6 | One Choice 2035 Portfolio R6 | |||||||||||
Increase (Decrease) in Net Assets | July 31, 2014 | July 31, 2013(1) | July 31, 2014 | July 31, 2013(1) | ||||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 386,557 | — | $ | 313,194 | — | ||||||
Net realized gain (loss) | 250,873 | — | 235,337 | — | ||||||||
Change in net unrealized appreciation (depreciation) | 899,549 | — | 653,856 | — | ||||||||
Net increase (decrease) in net assets resulting from operations | 1,536,979 | — | 1,202,387 | — | ||||||||
Distributions to Shareholders | ||||||||||||
From net investment income | (194,694) | — | (160,865) | — | ||||||||
Capital Share Transactions | ||||||||||||
Proceeds from shares sold | 39,637,910 | $ | 25,000 | 32,425,529 | $ | 25,000 | ||||||
Proceeds from reinvestment of distributions | 194,694 | — | 160,865 | — | ||||||||
Payments for shares redeemed | (4,923,054) | — | (2,200,166) | — | ||||||||
Net increase (decrease) in net assets from capital share transactions | 34,909,550 | 25,000 | 30,386,228 | 25,000 | ||||||||
Net increase (decrease) in net assets | 36,251,835 | 25,000 | 31,427,750 | 25,000 | ||||||||
Net Assets | ||||||||||||
Beginning of period | 25,000 | — | 25,000 | — | ||||||||
End of period | $ | 36,276,835 | $ | 25,000 | $ | 31,452,750 | $ | 25,000 | ||||
Undistributed net investment income | $ | 191,863 | — | $ | 152,329 | — | ||||||
Transactions in Shares of the Funds | ||||||||||||
Sold | 3,779,280 | 2,500 | 3,065,738 | 2,500 | ||||||||
Issued in reinvestment of distributions | 18,649 | — | 15,350 | — | ||||||||
Redeemed | (466,458) | — | (205,970) | — | ||||||||
Net increase (decrease) in shares of the funds | 3,331,471 | 2,500 | 2,875,118 | 2,500 | ||||||||
(1) | For the one day period ended July 31, 2013 (fund inception). |
See Notes to Financial Statements.
38
YEAR ENDED JULY 31, 2014 AND PERIOD ENDED JULY 31, 2013 | ||||||||||||
One Choice 2040 Portfolio R6 | One Choice 2045 Portfolio R6 | |||||||||||
Increase (Decrease) in Net Assets | July 31, 2014 | July 31, 2013(1) | July 31, 2014 | July 31, 2013(1) | ||||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 287,976 | — | $ | 226,144 | — | ||||||
Net realized gain (loss) | 244,858 | — | 190,627 | — | ||||||||
Change in net unrealized appreciation (depreciation) | 609,210 | — | 585,148 | — | ||||||||
Net increase (decrease) in net assets resulting from operations | 1,142,044 | — | 1,001,919 | — | ||||||||
Distributions to Shareholders | ||||||||||||
From net investment income | (163,594) | — | (124,925) | — | ||||||||
Capital Share Transactions | ||||||||||||
Proceeds from shares sold | 28,728,451 | $ | 25,000 | 23,496,563 | $ | 25,000 | ||||||
Proceeds from reinvestment of distributions | 163,594 | — | 124,925 | — | ||||||||
Payments for shares redeemed | (2,036,340) | — | (1,825,488) | — | ||||||||
Net increase (decrease) in net assets from capital share transactions | 26,855,705 | 25,000 | 21,796,000 | 25,000 | ||||||||
Net increase (decrease) in net assets | 27,834,155 | 25,000 | 22,672,994 | 25,000 | ||||||||
Net Assets | ||||||||||||
Beginning of period | 25,000 | — | 25,000 | — | ||||||||
End of period | $ | 27,859,155 | $ | 25,000 | $ | 22,697,994 | $ | 25,000 | ||||
Undistributed net investment income | $ | 124,382 | — | $ | 101,219 | — | ||||||
Transactions in Shares of the Funds | ||||||||||||
Sold | 2,702,785 | 2,500 | 2,206,518 | 2,500 | ||||||||
Issued in reinvestment of distributions | 15,536 | — | 11,819 | — | ||||||||
Redeemed | (189,370) | — | (169,459) | — | ||||||||
Net increase (decrease) in shares of the funds | 2,528,951 | 2,500 | 2,048,878 | 2,500 | ||||||||
(1) | For the one day period ended July 31, 2013 (fund inception). |
See Notes to Financial Statements.
39
YEAR ENDED JULY 31, 2014 AND PERIOD ENDED JULY 31, 2013 | ||||||||||||
One Choice 2050 Portfolio R6 | One Choice 2055 Portfolio R6 | |||||||||||
Increase (Decrease) in Net Assets | July 31, 2014 | July 31, 2013(1) | July 31, 2014 | July 31, 2013(1) | ||||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 165,635 | — | $ | 31,310 | — | ||||||
Net realized gain (loss) | 144,539 | — | 5,741 | — | ||||||||
Change in net unrealized appreciation (depreciation) | 417,202 | — | 207,192 | — | ||||||||
Net increase (decrease) in net assets resulting from operations | 727,376 | — | 244,243 | — | ||||||||
Distributions to Shareholders | ||||||||||||
From net investment income | (95,447) | — | (4,681) | — | ||||||||
Capital Share Transactions | ||||||||||||
Proceeds from shares sold | 17,740,478 | $ | 25,000 | 7,774,153 | $ | 25,000 | ||||||
Proceeds from reinvestment of distributions | 95,447 | — | 4,681 | — | ||||||||
Payments for shares redeemed | (1,511,499) | — | (834,768) | — | ||||||||
Net increase (decrease) in net assets from capital share transactions | 16,324,426 | 25,000 | 6,944,066 | 25,000 | ||||||||
Net increase (decrease) in net assets | 16,956,355 | 25,000 | 7,183,628 | 25,000 | ||||||||
Net Assets | ||||||||||||
Beginning of period | 25,000 | — | 25,000 | — | ||||||||
End of period | $ | 16,981,355 | $ | 25,000 | $ | 7,208,628 | $ | 25,000 | ||||
Undistributed net investment income | $ | 70,188 | — | $ | 26,629 | — | ||||||
Transactions in Shares of the Funds | ||||||||||||
Sold | 1,662,180 | 2,500 | 720,089 | 2,500 | ||||||||
Issued in reinvestment of distributions | 9,030 | — | 440 | — | ||||||||
Redeemed | (139,624) | — | (76,942) | — | ||||||||
Net increase (decrease) in shares of the funds | 1,531,586 | 2,500 | 643,587 | 2,500 | ||||||||
(1) | For the one day period ended July 31, 2013 (fund inception). |
See Notes to Financial Statements.
40
Notes to Financial Statements |
JULY 31, 2014
1. Organization
American Century Asset Allocation Portfolios, 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. The corporation is authorized to issue 3,000,000,000 shares. One Choice In Retirement Portfolio R6, One Choice 2015 Portfolio R6, One Choice 2020 Portfolio R6, One Choice 2025 Portfolio R6, One Choice 2030 Portfolio R6, One Choice 2035 Portfolio R6, One Choice 2040 Portfolio R6, One Choice 2045 Portfolio R6, One Choice 2050 Portfolio R6 and One Choice 2055 Portfolio R6 (collectively, the funds) are ten funds in a series issued by the corporation. The funds operate as “funds of funds,” meaning substantially all of the funds’ assets will be invested in other American Century Investments mutual funds (the underlying funds). Each fund’s assets are allocated among underlying funds that represent major asset classes, including equity securities (stocks), fixed-income securities (bonds) and cash-equivalent instruments (money markets). The underlying funds do not invest in securities issued by companies assigned the Global Industry Classification Standard for the tobacco industry. The funds are diversified as defined under the 1940 Act. The funds will assume the risks associated with their underlying funds. Additional information and attributes of each underlying fund are available at americancentury.com. The investment objective of One Choice In Retirement Portfolio R6 is to seek current income. Capital appreciation is a secondary objective. The investment objective of each of the nine target date One Choice Portfolios R6 is to seek the highest total return consistent with its allocation. When a fund reaches its most conservative planned target asset allocation, which is expected to occur on approximately November 30 of the year before the target date, its target asset mix will become fixed and will match that of One Choice In Retirement Portfolio R6. The funds incepted on July 31, 2013.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the funds in preparation of their financial statements. The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which 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 funds determine the fair value of their investments and compute their net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the funds' investment valuation process and to provide methodologies for the oversight of the funds' pricing function. Investments in the underlying funds are valued at their reported net asset value.
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 — Income and capital gain distributions, if any, from the underlying funds are recorded as of the ex-dividend date. Long-term capital gain distributions, if any, from the underlying funds are a component of net realized gain (loss).
Expenses — The expenses included in the accompanying financial statements reflect the expenses of each fund and do not include any expenses associated with the underlying funds.
Income Tax Status — It is each 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 funds file U.S. federal, state, local and non-U.S. tax returns as applicable. The funds' 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
41
and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid quarterly for One Choice In Retirement Portfolio R6. Distributions from net investment income, if any, are generally declared and paid annually for the nine target date One Choice Portfolios R6. Distributions from net realized gains, if any, are generally declared and paid annually for all funds.
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 funds. In addition, in the normal course of business, the funds enter into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, American Century Investment Management, Inc. (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. ACIM serves as the investment advisor for the underlying funds.
Administrative Fees — The corporation’s investment advisor, ACIM, does not receive an administrative fee for services provided to the funds.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the funds. The directors receive detailed information about the funds and their investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. Fees and expenses incurred in conjunction with the directors during the year ended July 31, 2014 are detailed in the Statements of Operations. The funds' officers do not receive compensation from the funds.
Acquired Fund Fees and Expenses — Each fund will indirectly realize its pro rata share of the fees and expenses of the underlying funds in which it invests. These fees and expenses are already reflected in the valuation of the underlying funds.
4. Investment Transactions
Investment transactions for the year ended July 31, 2014 were as follows:
One Choice In Retirement Portfolio R6 | One Choice 2015 Portfolio R6 | One Choice 2020 Portfolio R6 | One Choice 2025 Portfolio R6 | One Choice 2030 Portfolio R6 | |
Purchases | $13,477,346 | $26,801,351 | $51,045,679 | $43,358,369 | $39,740,278 |
Sales | $2,268,182 | $4,737,299 | $9,705,575 | $3,360,967 | $4,334,926 |
One Choice 2035 Portfolio R6 | One Choice 2040 Portfolio R6 | One Choice 2045 Portfolio R6 | One Choice 2050 Portfolio R6 | One Choice 2055 Portfolio R6 | |
Purchases | $32,519,480 | $28,705,010 | $23,441,523 | $17,643,909 | $7,621,057 |
Sales | $1,719,179 | $1,455,382 | $1,334,403 | $1,091,451 | $642,660 |
42
5. Affiliated Fund Transactions
A summary of transactions for each underlying fund for the year ended July 31, 2014 follows:
Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice In Retirement Portfolio R6 | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 750 | $ | 382,385 | $ | 62,960 | $ | 396 | $ | 10,578 | $ | 341,065 | ||||||
NT Equity Growth Fund | 2,500 | 1,323,043 | 239,155 | (3,369) | 54,129 | 1,136,842 | ||||||||||||
NT Growth Fund | 1,625 | 852,717 | 152,072 | 2,115 | 15,307 | 738,548 | ||||||||||||
NT Heritage Fund(3) | 625 | 343,348 | 61,131 | (4,189) | 13,665 | 283,692 | ||||||||||||
NT Large Company Value Fund | 2,750 | 1,408,398 | 242,334 | 1,939 | 27,370 | 1,249,918 | ||||||||||||
NT Mid Cap Value Fund | 1,000 | 514,116 | 82,744 | (895) | 19,097 | 456,714 | ||||||||||||
NT Small Company Fund | 500 | 284,242 | 57,973 | (2,725) | 12,213 | 225,405 | ||||||||||||
Real Estate Fund | 250 | 123,736 | 20,586 | 15 | 1,311 | 113,917 | ||||||||||||
High-Yield Fund | 950 | 494,521 | 51,752 | (30) | 16,178 | 438,528 | ||||||||||||
Inflation-Adjusted Bond Fund | 1,900 | 506,938 | 336,430 | (5,815) | 5,070 | 173,671 | ||||||||||||
NT Diversified Bond Fund | 6,650 | 3,557,884 | 520,937 | (100) | 40,379 | 3,083,503 | ||||||||||||
Short Duration Inflation Protection Bond Fund | — | 797,250 | 90,846 | (49) | 4,096 | 707,909 | ||||||||||||
Premium Money Market Fund | 2,500 | 1,310,225 | 151,602 | — | 66 | 1,161,123 | ||||||||||||
International Bond Fund | 1,750 | 915,858 | 118,742 | (328) | 1,920 | 811,100 | ||||||||||||
NT International Growth Fund | 1,250 | 662,685 | 93,886 | (1,933) | 15,653 | 569,888 | ||||||||||||
$ | 25,000 | $ | 13,477,346 | $ | 2,283,150 | $ | (14,968 | ) | $ | 237,032 | $ | 11,491,823 | ||||||
(1) | Underlying fund investments represent R6 Class for all funds, except Institutional Class for NT Core Equity Plus Fund, NT Equity Growth Fund, NT Small Company Fund, Inflation-Adjusted Bond Fund and Investor Class for Premium Money Market Fund. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
43
Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2015 Portfolio R6 | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 750 | $ | 775,252 | $ | 141,919 | $ | (599 | ) | $ | 14,467 | $ | 670,352 | |||||
NT Equity Growth Fund | 2,467 | 2,649,859 | 526,557 | (14,025 | ) | 74,041 | 2,223,367 | |||||||||||
NT Growth Fund | 1,717 | 1,778,546 | 364,678 | 981 | 20,730 | 1,478,022 | ||||||||||||
NT Heritage Fund(3) | 720 | 743,028 | 164,571 | (11,938 | ) | 19,629 | 586,277 | |||||||||||
NT Large Company Value Fund | 2,750 | 2,873,279 | 569,810 | 1,191 | 40,472 | 2,443,455 | ||||||||||||
NT Mid Cap Value Fund | 1,063 | 1,098,330 | 220,564 | (5,884 | ) | 27,627 | 928,293 | |||||||||||
NT Small Company Fund | 500 | 553,989 | 115,153 | (6,471 | ) | 15,880 | 438,622 | |||||||||||
Real Estate Fund | 270 | 259,547 | 47,065 | (1,101 | ) | 2,289 | 232,502 | |||||||||||
High-Yield Fund | 937 | 984,441 | 120,637 | (368 | ) | 26,482 | 852,650 | |||||||||||
Inflation-Adjusted Bond Fund | 1,875 | 838,401 | 470,396 | (9,639 | ) | 9,180 | 375,716 | |||||||||||
NT Diversified Bond Fund | 6,580 | 7,005,196 | 1,050,342 | (3,792 | ) | 67,403 | 6,034,357 | |||||||||||
Short Duration Inflation Protection Bond Fund | — | 1,509,099 | 169,388 | (334 | ) | 7,389 | 1,342,696 | |||||||||||
Premium Money Market Fund | 2,313 | 2,537,591 | 316,854 | — | 107 | 2,223,050 | ||||||||||||
International Bond Fund | 1,680 | 1,779,271 | 248,842 | (3,896 | ) | 2,177 | 1,557,755 | |||||||||||
NT Emerging Markets Fund | 95 | 58,472 | 30,902 | (98 | ) | 114 | 30,011 | |||||||||||
NT International Growth Fund | 1,283 | 1,357,050 | 241,393 | (5,799 | ) | 20,510 | 1,115,333 | |||||||||||
$ | 25,000 | $ | 26,801,351 | $ | 4,799,071 | $ | (61,772 | ) | $ | 348,497 | $ | 22,532,458 | ||||||
(1) | Underlying fund investments represent R6 Class for all funds, except Institutional Class for NT Core Equity Plus Fund, NT Equity Growth Fund, NT Small Company Fund, Inflation-Adjusted Bond Fund and Investor Class for Premium Money Market Fund. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
44
Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2020 Portfolio R6 | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 750 | $ | 1,411,519 | $ | 226,695 | $ | (4,641 | ) | $ | 40,508 | $ | 1,250,258 | |||||
NT Equity Growth Fund | 2,375 | 4,719,928 | 865,734 | (36,538 | ) | 196,195 | 4,004,969 | |||||||||||
NT Growth Fund | 2,000 | 3,889,603 | 745,855 | (4,541 | ) | 73,312 | 3,282,909 | |||||||||||
NT Heritage Fund(3) | 970 | 1,930,801 | 411,844 | (33,311 | ) | 79,756 | 1,515,078 | |||||||||||
NT Large Company Value Fund | 2,810 | 5,416,980 | 1,011,473 | (6,725 | ) | 103,330 | 4,674,979 | |||||||||||
NT Mid Cap Value Fund | 1,250 | 2,412,881 | 460,395 | (15,727 | ) | 90,957 | 2,047,314 | |||||||||||
NT Small Company Fund | 500 | 1,026,176 | 183,484 | (10,789 | ) | 47,475 | 827,789 | |||||||||||
Real Estate Fund | 332 | 618,117 | 128,574 | (4,549 | ) | 5,913 | 534,525 | |||||||||||
High-Yield Fund | 900 | 1,839,501 | 276,881 | (1,720 | ) | 53,475 | 1,543,011 | |||||||||||
Inflation-Adjusted Bond Fund | 1,807 | 2,385,614 | 1,131,437 | (26,190 | ) | 38,517 | 1,266,992 | |||||||||||
NT Diversified Bond Fund | 6,285 | 13,043,770 | 2,389,375 | (10,188 | ) | 133,074 | 10,790,760 | |||||||||||
Short Duration Inflation Protection Bond Fund | — | 2,137,645 | 309,016 | (1,192 | ) | 10,380 | 1,832,065 | |||||||||||
Premium Money Market Fund | 1,688 | 3,644,690 | 564,058 | — | 159 | 3,082,320 | ||||||||||||
NT Emerging Markets Fund | 375 | 608,747 | 167,505 | (3,990 | ) | 1,524 | 471,944 | |||||||||||
NT International Growth Fund | 1,533 | 2,976,185 | 501,835 | (16,115 | ) | 73,154 | 2,456,800 | |||||||||||
International Bond Fund | 1,425 | 2,983,522 | 517,073 | (9,443 | ) | 5,624 | 2,504,281 | |||||||||||
$ | 25,000 | $ | 51,045,679 | $ | 9,891,234 | $ | (185,659 | ) | $ | 953,353 | $ | 42,085,994 | ||||||
(1) | Underlying fund investments represent R6 Class for all funds, except Institutional Class for NT Core Equity Plus Fund, NT Equity Growth Fund, NT Small Company Fund, Inflation-Adjusted Bond Fund and Investor Class for Premium Money Market Fund. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
45
Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2025 Portfolio R6 | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 750 | $ | 1,206,480 | $ | 46,745 | $ | (813 | ) | $ | 22,379 | $ | 1,213,420 | |||||
NT Equity Growth Fund | 2,312 | 3,826,792 | 221,193 | (8,402 | ) | 104,942 | 3,728,846 | |||||||||||
NT Growth Fund | 2,342 | 3,814,907 | 318,596 | (1,480 | ) | 43,041 | 3,630,686 | |||||||||||
NT Heritage Fund(3) | 1,143 | 1,929,977 | 107,547 | (7,240 | ) | 48,832 | 1,818,718 | |||||||||||
NT Large Company Value Fund | 2,875 | 4,731,174 | 367,951 | (3,938 | ) | 66,561 | 4,583,666 | |||||||||||
NT Mid Cap Value Fund | 1,375 | 2,266,178 | 124,623 | (5,012 | ) | 55,903 | 2,236,541 | |||||||||||
NT Small Company Fund | 638 | 1,056,338 | 89,758 | (3,616 | ) | 30,109 | 953,203 | |||||||||||
Real Estate Fund | 395 | 616,317 | 42,288 | (1,125 | ) | 5,499 | 617,785 | |||||||||||
High-Yield Fund | 850 | 1,528,309 | 94,591 | (682 | ) | 38,435 | 1,413,533 | |||||||||||
Inflation-Adjusted Bond Fund | 1,692 | 2,100,452 | 417,807 | (11,252 | ) | 36,593 | 1,702,086 | |||||||||||
NT Diversified Bond Fund | 5,938 | 10,863,312 | 957,538 | (1,232 | ) | 98,546 | 10,015,327 | |||||||||||
Short Duration Inflation Protection Bond Fund | — | 1,220,899 | 77,106 | (208 | ) | 5,781 | 1,145,472 | |||||||||||
NT Emerging Markets Fund | 595 | 914,025 | 52,304 | (1,805 | ) | 1,711 | 912,767 | |||||||||||
NT International Growth Fund | 1,782 | 2,956,900 | 159,002 | (6,424 | ) | 43,554 | 2,779,189 | |||||||||||
Premium Money Market Fund | 1,250 | 2,223,639 | 159,319 | — | 89 | 2,065,570 | ||||||||||||
International Bond Fund | 1,063 | 2,102,670 | 179,461 | (1,633 | ) | 2,276 | 1,948,325 | |||||||||||
$ | 25,000 | $ | 43,358,369 | $ | 3,415,829 | $ | (54,862 | ) | $ | 604,251 | $ | 40,765,134 | ||||||
(1) | Underlying fund investments represent R6 Class for all funds, except Institutional Class for NT Core Equity Plus Fund, NT Equity Growth Fund, NT Small Company Fund, Inflation-Adjusted Bond Fund and Investor Class for Premium Money Market Fund. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
46
Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2030 Portfolio R6 | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 813 | $ | 1,237,918 | $ | 131,344 | $ | 436 | $ | 27,053 | $ | 1,170,394 | ||||||
NT Equity Growth Fund | 2,312 | 3,590,048 | 395,351 | (5,512 | ) | 117,605 | 3,328,930 | |||||||||||
NT Growth Fund | 2,780 | 4,300,857 | 606,150 | 1,974 | 59,344 | 3,864,280 | ||||||||||||
NT Heritage Fund(3) | 1,250 | 2,065,502 | 267,419 | (16,900 | ) | 62,864 | 1,797,401 | |||||||||||
NT Large Company Value Fund | 3,030 | 4,539,075 | 516,779 | 3,400 | 73,764 | 4,270,159 | ||||||||||||
NT Mid Cap Value Fund | 1,312 | 2,024,959 | 220,577 | (3,596 | ) | 59,307 | 1,897,697 | |||||||||||
NT Small Company Fund | 875 | 1,449,369 | 232,115 | (9,073 | ) | 48,793 | 1,206,339 | |||||||||||
Real Estate Fund | 458 | 675,756 | 82,171 | (3,002 | ) | 6,316 | 648,411 | |||||||||||
High-Yield Fund | 755 | 1,220,216 | 85,638 | (180 | ) | 34,939 | 1,120,492 | |||||||||||
Inflation-Adjusted Bond Fund | 1,538 | 2,107,505 | 315,349 | (7,139 | ) | 44,068 | 1,809,164 | |||||||||||
NT Diversified Bond Fund | 5,312 | 8,705,279 | 804,001 | (3,060 | ) | 89,702 | 8,003,477 | |||||||||||
Short Duration Inflation Protection Bond Fund | — | 499,433 | 13,481 | (30 | ) | 2,490 | 486,806 | |||||||||||
NT Emerging Markets Fund | 720 | 1,075,644 | 146,918 | (2,353 | ) | 2,336 | 993,317 | |||||||||||
NT International Growth Fund | 2,157 | 3,430,224 | 394,167 | (7,088 | ) | 61,185 | 3,024,600 | |||||||||||
Premium Money Market Fund | 1,250 | 1,961,174 | 131,220 | — | 89 | 1,831,204 | ||||||||||||
International Bond Fund | 438 | 857,319 | 45,302 | (933 | ) | 1,141 | 824,174 | |||||||||||
$ | 25,000 | $ | 39,740,278 | $ | 4,387,982 | $ | (53,056 | ) | $ | 690,996 | $ | 36,276,845 | ||||||
(1) | Underlying fund investments represent R6 Class for all funds, except Institutional Class for NT Core Equity Plus Fund, NT Equity Growth Fund, NT Small Company Fund, Inflation-Adjusted Bond Fund and Investor Class for Premium Money Market Fund. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
47
Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2035 Portfolio R6 | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 813 | $ | 1,002,122 | $ | 34,471 | $ | (436 | ) | $ | 21,680 | $ | 1,013,529 | |||||
NT Equity Growth Fund | 2,407 | 2,983,562 | 153,001 | (4,309 | ) | 96,003 | 2,925,187 | |||||||||||
NT Growth Fund | 3,217 | 4,050,890 | 260,818 | (1,210 | ) | 54,399 | 3,940,772 | |||||||||||
NT Heritage Fund(3) | 1,408 | 1,807,125 | 118,435 | (8,503 | ) | 54,336 | 1,681,487 | |||||||||||
NT Large Company Value Fund | 3,217 | 3,969,230 | 231,742 | 23 | 63,212 | 3,936,084 | ||||||||||||
NT Mid Cap Value Fund | 1,407 | 1,715,455 | 92,793 | (882 | ) | 49,589 | 1,692,194 | |||||||||||
NT Small Company Fund | 1,050 | 1,422,455 | 86,585 | (2,671 | ) | 46,987 | 1,313,009 | |||||||||||
Real Estate Fund | 518 | 625,578 | 32,985 | (601 | ) | 5,919 | 636,360 | |||||||||||
High-Yield Fund | 650 | 899,902 | 19,425 | (123 | ) | 24,280 | 867,638 | |||||||||||
Inflation-Adjusted Bond Fund | 1,325 | 1,807,691 | 91,982 | (3,086 | ) | 40,020 | 1,727,264 | |||||||||||
NT Diversified Bond Fund | 4,612 | 6,412,873 | 334,732 | (1,182 | ) | 62,409 | 6,143,587 | |||||||||||
Short Duration Inflation Protection Bond Fund | — | 31,530 | — | — | 108 | 31,450 | ||||||||||||
NT Emerging Markets Fund | 875 | 1,070,357 | 77,413 | 521 | 2,259 | 1,054,236 | ||||||||||||
NT International Growth Fund | 2,438 | 3,162,890 | 170,721 | (3,940 | ) | 54,063 | 2,971,553 | |||||||||||
Premium Money Market Fund | 1,063 | 1,557,820 | 40,475 | — | 66 | 1,518,408 | ||||||||||||
$ | 25,000 | $ | 32,519,480 | $ | 1,745,578 | $ | (26,399 | ) | $ | 575,330 | $ | 31,452,758 | ||||||
(1) | Underlying fund investments represent R6 Class for all funds, except Institutional Class for NT Core Equity Plus Fund, NT Equity Growth Fund, NT Small Company Fund, Inflation-Adjusted Bond Fund and Investor Class for Premium Money Market Fund. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
48
Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2040 Portfolio R6 | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 907 | $ | 959,244 | $ | 33,149 | $ | (460 | ) | $ | 21,840 | $ | 969,325 | |||||
NT Equity Growth Fund | 2,563 | 2,815,705 | 103,696 | (4,443 | ) | 97,437 | 2,799,143 | |||||||||||
NT Growth Fund | 3,470 | 3,841,531 | 211,162 | 641 | 56,068 | 3,769,452 | ||||||||||||
NT Heritage Fund(3) | 1,655 | 1,890,571 | 114,956 | (6,311 | ) | 61,579 | 1,761,383 | |||||||||||
NT Large Company Value Fund | 3,470 | 3,731,607 | 153,513 | (924 | ) | 62,159 | 3,764,709 | |||||||||||
NT Mid Cap Value Fund | 1,655 | 1,791,457 | 82,101 | (2,251 | ) | 54,848 | 1,782,005 | |||||||||||
NT Small Company Fund | 1,020 | 1,224,522 | 64,677 | (3,066 | ) | 43,878 | 1,137,089 | |||||||||||
Real Estate Fund | 583 | 624,599 | 37,375 | (699 | ) | 5,779 | 633,188 | |||||||||||
High-Yield Fund | 563 | 688,843 | 15,465 | (50 | ) | 18,909 | 664,402 | |||||||||||
Inflation-Adjusted Bond Fund | 1,125 | 1,401,448 | 75,068 | (2,632 | ) | 30,527 | 1,335,620 | |||||||||||
NT Diversified Bond Fund | 3,957 | 4,981,599 | 341,393 | (5 | ) | 47,900 | 4,692,825 | |||||||||||
NT Emerging Markets Fund | 1,095 | 1,206,238 | 97,692 | (1,421 | ) | 2,562 | 1,174,629 | |||||||||||
NT International Growth Fund | 2,500 | 2,898,716 | 138,069 | (3,056 | ) | 54,354 | 2,737,767 | |||||||||||
Premium Money Market Fund | 437 | 648,930 | 11,743 | — | 27 | 637,624 | ||||||||||||
$ | 25,000 | $ | 28,705,010 | $ | 1,480,059 | $ | (24,677 | ) | $ | 557,867 | $ | 27,859,161 | ||||||
(1) | Underlying fund investments represent R6 Class for all funds, except Institutional Class for NT Core Equity Plus Fund, NT Equity Growth Fund, NT Small Company Fund, Inflation-Adjusted Bond Fund and Investor Class for Premium Money Market Fund. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
49
Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2045 Portfolio R6 | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 1,125 | $ | 985,073 | $ | 42,397 | $ | (308 | ) | $ | 21,214 | $ | 990,139 | |||||
NT Equity Growth Fund | 2,575 | 2,341,482 | 95,052 | (2,045 | ) | 74,452 | 2,325,601 | |||||||||||
NT Growth Fund | 3,655 | 3,338,092 | 192,352 | 344 | 43,758 | 3,272,430 | ||||||||||||
NT Heritage Fund(3) | 1,813 | 1,757,450 | 111,744 | (6,856 | ) | 50,743 | 1,638,051 | |||||||||||
NT Large Company Value Fund | 3,655 | 3,253,298 | 150,820 | (351 | ) | 51,753 | 3,273,446 | |||||||||||
NT Mid Cap Value Fund | 1,812 | 1,656,600 | 78,234 | (665 | ) | 46,606 | 1,649,783 | |||||||||||
NT Small Company Fund | 1,033 | 980,214 | 70,224 | (2,062 | ) | 31,180 | 894,716 | |||||||||||
Real Estate Fund | 645 | 577,469 | 45,382 | (86 | ) | 5,373 | 573,749 | |||||||||||
High-Yield Fund | 483 | 471,445 | 10,314 | (58 | ) | 13,091 | 454,735 | |||||||||||
Inflation-Adjusted Bond Fund | 962 | 963,956 | 60,551 | (1,856 | ) | 21,032 | 911,134 | |||||||||||
NT Diversified Bond Fund | 3,397 | 3,424,534 | 256,668 | (158 | ) | 33,381 | 3,205,361 | |||||||||||
NT Emerging Markets Fund | 1,313 | 1,220,396 | 103,379 | (1,202 | ) | 2,516 | 1,187,941 | |||||||||||
NT International Growth Fund | 2,532 | 2,471,514 | 136,557 | (3,968 | ) | 41,241 | 2,320,911 | |||||||||||
$ | 25,000 | $ | 23,441,523 | $ | 1,353,674 | $ | (19,271 | ) | $ | 436,340 | $ | 22,697,997 | ||||||
(1) | Underlying fund investments represent R6 Class for all funds, except Institutional Class for NT Core Equity Plus Fund, NT Equity Growth Fund, NT Small Company Fund and Inflation-Adjusted Bond Fund. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
50
Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2050 Portfolio R6 | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 1,125 | $ | 757,303 | $ | 28,840 | $ | 90 | $ | 15,872 | $ | 761,466 | ||||||
NT Equity Growth Fund | 2,595 | 1,751,937 | 74,933 | (928 | ) | 54,781 | 1,731,289 | |||||||||||
NT Growth Fund | 3,717 | 2,570,851 | 167,226 | (326 | ) | 32,970 | 2,495,964 | |||||||||||
NT Heritage Fund(3) | 1,813 | 1,312,041 | 76,984 | (4,629 | ) | 37,734 | 1,228,039 | |||||||||||
NT Large Company Value Fund | 3,782 | 2,536,852 | 130,459 | 38 | 39,739 | 2,533,786 | ||||||||||||
NT Mid Cap Value Fund | 1,813 | 1,246,668 | 63,033 | (740 | ) | 34,621 | 1,235,380 | |||||||||||
NT Small Company Fund | 1,188 | 871,644 | 80,331 | (3,061 | ) | 27,630 | 777,147 | |||||||||||
Real Estate Fund | 707 | 474,471 | 36,887 | (177 | ) | 4,382 | 471,269 | |||||||||||
High-Yield Fund | 420 | 313,260 | 11,291 | (16 | ) | 8,426 | 297,817 | |||||||||||
Inflation-Adjusted Bond Fund | 838 | 635,148 | 45,188 | (1,608 | ) | 13,735 | 595,797 | |||||||||||
NT Diversified Bond Fund | 2,972 | 2,293,022 | 198,102 | (53 | ) | 21,771 | 2,120,938 | |||||||||||
NT Emerging Markets Fund | 1,563 | 1,087,091 | 105,255 | 44 | 2,132 | 1,038,606 | ||||||||||||
NT International Growth Fund | 2,467 | 1,793,621 | 86,224 | (1,936 | ) | 29,905 | 1,693,860 | |||||||||||
$ | 25,000 | $ | 17,643,909 | $ | 1,104,753 | $ | (13,302 | ) | $ | 323,698 | $ | 16,981,358 | ||||||
(1) | Underlying fund investments represent R6 Class for all funds, except Institutional Class for NT Core Equity Plus Fund, NT Equity Growth Fund, NT Small Company Fund and Inflation-Adjusted Bond Fund. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
51
Fund/Underlying Fund(1) | Beginning Value | Purchase Cost | Sales Cost | Realized Gain (Loss) | Distributions Received(2) | Ending Value | ||||||||||||
One Choice 2055 Portfolio R6 | ||||||||||||||||||
NT Core Equity Plus Fund | $ | 1,125 | $ | 333,914 | $ | 24,482 | $ | 43 | $ | 1,673 | $ | 323,577 | ||||||
NT Equity Growth Fund | 2,688 | 807,560 | 65,458 | (480 | ) | 5,871 | 772,510 | |||||||||||
NT Growth Fund | 3,812 | 1,160,117 | 104,307 | 309 | 1,647 | 1,095,494 | ||||||||||||
NT Heritage Fund(3) | 1,875 | 586,146 | 57,350 | (728 | ) | 1,897 | 538,409 | |||||||||||
NT Large Company Value Fund | 3,875 | 1,169,147 | 102,980 | 322 | 7,876 | 1,113,313 | ||||||||||||
NT Mid Cap Value Fund | 1,875 | 559,829 | 47,039 | (170 | ) | 3,944 | 541,468 | |||||||||||
NT Small Company Fund | 1,250 | 398,215 | 40,382 | (117 | ) | 1,403 | 356,616 | |||||||||||
Real Estate Fund | 750 | 219,011 | 20,362 | 109 | 1,464 | 216,545 | ||||||||||||
NT Emerging Markets Fund | 1,625 | 484,130 | 43,677 | (595 | ) | 452 | 467,587 | |||||||||||
NT International Growth Fund | 2,375 | 738,196 | 55,497 | (345 | ) | 1,376 | 684,614 | |||||||||||
High-Yield Fund | 375 | 116,052 | 5,317 | (4 | ) | 2,384 | 109,662 | |||||||||||
Inflation-Adjusted Bond Fund | 750 | 229,922 | 15,227 | (279 | ) | 2,865 | 219,871 | |||||||||||
NT Diversified Bond Fund | 2,625 | 818,818 | 62,542 | (25 | ) | 6,233 | 768,963 | |||||||||||
$ | 25,000 | $ | 7,621,057 | $ | 644,620 | $ | (1,960 | ) | $ | 39,085 | $ | 7,208,629 | ||||||
(1) | Underlying fund investments represent R6 Class for all funds, except Institutional Class for NT Core Equity Plus Fund, NT Equity Growth Fund, NT Small Company Fund and Inflation-Adjusted Bond Fund. |
(2) | Distributions received includes distributions from net investment income and from capital gains, if any. |
(3) | Effective October 11, 2013, the name of NT VistaSM Fund was changed to NT Heritage Fund. |
6. Investments in Underlying Funds
The funds do not invest in the underlying funds for the purpose of exercising management or control; however, investments by the funds within their investment strategies may represent a significant portion of the underlying funds’ net assets.
7. Fair Value Measurements
The funds’ investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the funds. 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.
As of period end, the funds' investment securities were classified as Level 1. The Schedules of Investments provide additional information on the funds' portfolio holdings.
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8. Federal Tax Information
The tax character of distributions paid during the year ended July 31, 2014 were as follows:
Distributions Paid From: | |||||
Ordinary income | Long-term capital gains | ||||
One Choice In Retirement Portfolio R6 | $ | 131,650 | — | ||
One Choice 2015 Portfolio R6 | $ | 93,293 | — | ||
One Choice 2020 Portfolio R6 | $ | 294,116 | — | ||
One Choice 2025 Portfolio R6 | $ | 157,758 | — | ||
One Choice 2030 Portfolio R6 | $ | 194,694 | — | ||
One Choice 2035 Portfolio R6 | $ | 160,865 | — | ||
One Choice 2040 Portfolio R6 | $ | 163,594 | — | ||
One Choice 2045 Portfolio R6 | $ | 124,925 | — | ||
One Choice 2050 Portfolio R6 | $ | 95,447 | — | ||
One Choice 2055 Portfolio R6 | $ | 4,681 | — | ||
There were no distributions paid by the funds during the one day period ended July 31, 2013.
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 July 31, 2014, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
One Choice In Retirement Portfolio R6 | One Choice 2015 Portfolio R6 | One Choice 2020 Portfolio R6 | One Choice 2025 Portfolio R6 | One Choice 2030 Portfolio R6 | |||||||||||
Federal tax cost of investments | $ | 11,238,045 | $ | 22,094,527 | $ | 41,369,311 | $ | 40,027,430 | $ | 35,448,244 | |||||
Gross tax appreciation of investments | $ | 260,939 | $ | 454,159 | $ | 787,599 | $ | 802,039 | $ | 873,819 | |||||
Gross tax depreciation of investments | (7,161 | ) | (16,228 | ) | (70,916 | ) | (64,335 | ) | (45,218 | ) | |||||
Net tax appreciation (depreciation) of investments | $ | 253,778 | $ | 437,931 | $ | 716,683 | $ | 737,704 | $ | 828,601 | |||||
Undistributed ordinary income | $ | 24,317 | $ | 173,436 | $ | 346,042 | $ | 242,456 | $ | 248,821 | |||||
Accumulated long-term gains | $ | 84,762 | $ | 86,918 | $ | 316,772 | $ | 208,558 | $ | 264,863 | |||||
One Choice 2035 Portfolio R6 | One Choice 2040 Portfolio R6 | One Choice 2045 Portfolio R6 | One Choice 2050 Portfolio R6 | One Choice 2055 Portfolio R6 | |||||||||||
Federal tax cost of investments | $ | 30,831,189 | $ | 27,278,439 | $ | 22,136,924 | $ | 16,582,340 | $ | 7,006,457 | |||||
Gross tax appreciation of investments | $ | 693,530 | $ | 658,105 | $ | 612,040 | $ | 445,384 | $ | 206,650 | |||||
Gross tax depreciation of investments | (71,961 | ) | (77,383 | ) | (50,967 | ) | (46,366 | ) | (4,478 | ) | |||||
Net tax appreciation (depreciation) of investments | $ | 621,569 | $ | 580,722 | $ | 561,073 | $ | 399,018 | $ | 202,172 | |||||
Undistributed ordinary income | $ | 172,807 | $ | 145,909 | $ | 117,152 | $ | 82,581 | $ | 32,881 | |||||
Accumulated long-term gains | $ | 247,146 | $ | 251,819 | $ | 198,769 | $ | 150,330 | $ | 4,509 | |||||
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
One Choice In Retirement Portfolio R6 — R6 Class | |||||||||||||
2014 | $10.00 | 0.23 | 0.61 | 0.84 | (0.22) | $10.62 | 8.46% | 0.00%(4) | 2.16% | 34% | $11,492 | ||
2013(5) | $10.00 | — | — | — | — | $10.00 | 0.00% | 0.00% | 0.00% | 0% | $25 | ||
One Choice 2015 Portfolio R6 — R6 Class | |||||||||||||
2014 | $10.00 | 0.21 | 0.65 | 0.86 | (0.14) | $10.72 | 8.70% | 0.00%(4) | 1.98% | 40% | $22,532 | ||
2013(5) | $10.00 | — | — | — | — | $10.00 | 0.00% | 0.00% | 0.00% | 0% | $25 | ||
One Choice 2020 Portfolio R6 — R6 Class | |||||||||||||
2014 | $10.00 | 0.25 | 0.67 | 0.92 | (0.15) | $10.77 | 9.24% | 0.00%(4) | 2.36% | 43% | $42,086 | ||
2013(5) | $10.00 | — | — | — | — | $10.00 | 0.00% | 0.00% | 0.00% | 0% | $25 | ||
One Choice 2025 Portfolio R6 — R6 Class | |||||||||||||
2014 | $10.00 | 0.22 | 0.78 | 1.00 | (0.15) | $10.85 | 10.04% | 0.00%(4) | 2.04% | 18% | $40,765 | ||
2013(5) | $10.00 | — | — | — | — | $10.00 | 0.00% | 0.00% | 0.00% | 0% | $25 | ||
One Choice 2030 Portfolio R6 — R6 Class | |||||||||||||
2014 | $10.00 | 0.23 | 0.81 | 1.04 | (0.16) | $10.88 | 10.48% | 0.00%(4) | 2.13% | 23% | $36,277 | ||
2013(5) | $10.00 | — | — | — | — | $10.00 | 0.00% | 0.00% | 0.00% | 0% | $25 | ||
One Choice 2035 Portfolio R6 — R6 Class | |||||||||||||
2014 | $10.00 | 0.24 | 0.87 | 1.11 | (0.18) | $10.93 | 11.18% | 0.00%(4) | 2.19% | 12% | $31,453 | ||
2013(5) | $10.00 | — | — | — | — | $10.00 | 0.00% | 0.00% | 0.00% | 0% | $25 | ||
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For a Share Outstanding Throughout the Years Ended July 31 (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(3) | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
One Choice 2040 Portfolio R6 — R6 Class | |||||||||||||
2014 | $10.00 | 0.24 | 0.96 | 1.20 | (0.19) | $11.01 | 12.13% | 0.00%(4) | 2.25% | 11% | $27,859 | ||
2013(5) | $10.00 | — | — | — | — | $10.00 | 0.00% | 0.00% | 0.00% | 0% | $25 | ||
One Choice 2045 Portfolio R6 — R6 Class | |||||||||||||
2014 | $10.00 | 0.23 | 1.02 | 1.25 | (0.19) | $11.06 | 12.62% | 0.00%(4) | 2.13% | 12% | $22,698 | ||
2013(5) | $10.00 | — | — | — | — | $10.00 | 0.00% | 0.00% | 0.00% | 0% | $25 | ||
One Choice 2050 Portfolio R6 — R6 Class | |||||||||||||
2014 | $10.00 | 0.23 | 1.05 | 1.28 | (0.21) | $11.07 | 12.88% | 0.00%(4) | 2.11% | 13% | $16,981 | ||
2013(5) | $10.00 | — | — | — | — | $10.00 | 0.00% | 0.00% | 0.00% | 0% | $25 | ||
One Choice 2055 Portfolio R6 — R6 Class | |||||||||||||
2014 | $10.00 | 0.13 | 1.19 | 1.32 | (0.16) | $11.16 | 13.22% | 0.00%(4) | 1.14% | 23% | $7,209 | ||
2013(5) | $10.00 | — | — | — | — | $10.00 | 0.00% | 0.00% | 0.00% | 0% | $25 | ||
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(3) | Ratio of operating expenses to average net assets does not include any fees and expenses of the underlying funds. |
(4) | Ratio was less than 0.005%. |
(5) | For the one day period ended July 31, 2013 (fund inception). |
See Notes to Financial Statements.
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Report of Independent Registered Public Accounting Firm |
To the Board of Directors and Shareholders of American Century Asset Allocation Portfolios, Inc.:
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of One Choice In Retirement Portfolio R6, One Choice 2015 Portfolio R6, One Choice 2020 Portfolio R6, One Choice 2025 Portfolio R6, One Choice 2030 Portfolio R6, One Choice 2035 Portfolio R6, One Choice 2040 Portfolio R6, One Choice 2045 Portfolio R6, One Choice 2050 Portfolio R6, and One Choice 2055 Portfolio R6, ten of the portfolios constituting American Century Asset Allocation Portfolios, Inc. (the “Funds”), as of July 31, 2014, and the related statements of operations for the year then ended, the statements of changes in net assets for the year then ended and for the one-day period ended July 31, 2013 (commencement date), and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2014, by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective Funds as of July 31, 2014, the results of their operations for the year then ended, the changes in their net assets for the year then ended and for the one-day period ended July 31, 2013 (commencement date), and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Kansas City, Missouri
September 17, 2014
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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 by December 31 of the year in which they reach their 75th birthday.
Mr. 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). Mr. Fink is treated as an “interested person” because of his recent employment with ACC and American Century Services, LLC (ACS). 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 ACS, and 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 Mr. Thomas, 15) 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 | |||||
Thomas A. Brown (1940) | Director | Since 1980 | Managing Member, Associated Investments, LLC (real estate investment company); Brown Cascade Properties, LLC (real estate investment company) (2001 to 2009) | 73 | None |
Andrea C. Hall (1945) | Director | Since 1997 | Retired | 73 | None |
Jan M. Lewis (1957) | Director | Since 2011 | Retired; President and Chief Executive Officer, Catholic Charities of Northeast Kansas (human services organization) (2006 to 2013) | 73 | None |
James A. Olson (1942) | Director and Chairman of the Board | Since 2007 (Chairman since 2014) | Member, Plaza Belmont LLC (private equity fund manager) | 73 | Saia, Inc. (2002 to 2012) and EPR Properties (2003 to 2013) |
M. Jeannine Strandjord (1945) | Director | Since 1994 | Retired | 73 | Euronet Worldwide Inc.; Charming Shoppes, Inc. (2006 to 2010); and DST Systems Inc. (1996 to 2012) |
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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 | |||||
John R. Whitten (1946) | Director | Since 2008 | Retired | 73 | Rudolph Technologies, Inc. |
Stephen E. Yates (1948) | Director | Since 2012 | Retired; Executive Vice President, Technology & Operations, KeyCorp. (computer services) (2004 to 2010) | 73 | Applied Industrial Technologies, Inc. (2001 to 2010) |
Interested Directors | |||||
Barry Fink (1955) | Director | Since 2012 | Retired; Executive Vice President, ACC (September 2007 to February 2013); President, ACS (October 2007 to February 2013); Chief Operating Officer, ACC (September 2007 to November 2012) | 73 | None |
Jonathan S. Thomas (1963) | Director and President | Since 2007 | President and Chief Executive Officer, ACC (March 2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries | 118 | BioMed Valley Discoveries, Inc. |
The Statement of Additional Information has additional information about the funds’ 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 15 investment companies in the American Century family of funds, unless otherwise noted. 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 |
Jonathan S. Thomas (1963) | Director and President since 2007 | President and Chief Executive Officer, ACC (March 2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries |
Amy D. Shelton (1964) | Chief Compliance Officer since 2014 | Chief Compliance Officer, American Century funds, (March 2014 to present); Chief Compliance Officer, ACIM (February 2014 to present); Chief Compliance Officer, ACIS (October 2009 to present); Vice President, Client Interactions and Marketing, ACIS (February 2013 to January 2014); Director, Client Interactions and Marketing, ACIS (June 2007 to January 2013). Also serves as Vice President, ACIS |
Charles A. Etherington (1957) | General Counsel since 2007 and Senior Vice President since 2006 | Attorney, ACC (February 1994 to present); Vice President, ACC (November 2005 to present); General Counsel, ACC (March 2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS |
C. Jean Wade (1964) | Vice President, Treasurer and Chief Financial Officer since 2012 | Vice President, ACS (February 2000 to present) |
Robert J. Leach (1966) | Vice President since 2006 and Assistant Treasurer since 2012 | Vice President, ACS (February 2000 to present) |
David H. Reinmiller (1963) | Vice President since 2000 | Attorney, ACC (January 1994 to present); Associate General Counsel, ACC (January 2001 to present). Also serves as Vice President, ACIM and ACS |
Ward D. Stauffer (1960) | Secretary since 2005 | Attorney, ACC (June 2003 to present) |
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Approval of Management Agreement |
At a meeting held on June 18, 2014, the Funds’ Board of Directors unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for each of the Funds. Under Section 15(c) of the Investment Company Act, contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of the funds’ directors (the “Directors”), including a majority of the independent Directors, each year.
Prior to its consideration of the renewal of the management agreement, the Board requested and reviewed extensive data and information compiled by the Advisor and certain independent providers of evaluation data concerning the Funds and the services provided to the Funds by the Advisor. This review was in addition to the oversight and evaluation undertaken by the Board and its committees on a continuous basis and the information received was supplemental to the extensive information that the Board and its committees receive and consider throughout the year.
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 included, but was not limited to, the following:
• | the nature, extent, and quality of investment management, shareholder services, and other services provided by the Advisor to each Fund; |
• | the wide range of other programs and services the Advisor provides to each Fund and its shareholders on a routine and non-routine basis; |
• | each Fund’s investment performance compared to appropriate benchmarks and/or a peer group of other mutual funds with similar investment objectives and strategies; |
• | the cost of owning each Fund compared to the cost of owning similar funds; |
• | the Advisor’s compliance policies, procedures, and regulatory experience; |
• | financial data showing the cost of services provided to the Funds, the profitability of each Fund to the Advisor, and the overall profitability of the Advisor; |
• | possible economies of scale associated with the Advisor’s management of the Funds and other accounts under its management; |
• | the services provided and charges to other investment management clients of the Advisor |
• | acquired fund fees and expenses; and |
• | any collateral benefits derived by the Advisor from the management of the Funds. |
In keeping with its practice, the Board held two in-person meetings and one telephonic meeting to review and discuss the information provided. The independent Directors also 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, and evaluated such information for each 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. In deciding to renew the management agreement, the Board based its decision on a number of factors, including the following:
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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 each Fund. The Board noted that under the management agreement, the Advisor provides or arranges at its own expense a wide variety of services including:
• | constructing and designing each Fund |
• | portfolio research and security selection |
• | initial capitalization/funding |
• | securities trading |
• | Fund administration |
• | custody of Fund assets |
• | daily valuation of each Fund’s portfolio |
• | 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 Rule 12b-1 plans) |
The Board noted that many of these services have expanded over time both in terms of 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 Funds is quite complex and allows fund shareholders access to professional money management, instant diversification of their investments within an asset class, 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 each Fund in accordance with its investment objectives and approved 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 (portfolio managers, analysts, research assistants, and securities traders) 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, regularly reviews investment performance information for each Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Directors also review detailed performance information during the management agreement approval process. If performance concerns are identified with respect to a fund, the Fund receives special reviews until performance improves, during which the Board discusses with the Advisor the reasons for such results (e.g., market conditions, security selection) and any efforts being undertaken to improve performance. The Funds had less than one year of performance history at the time of the Board’s review. Taking all these factors into consideration, the Board found the investment management services provided to each Fund by the Advisor to be satisfactory and consistent with the management agreement.
Shareholder and Other Services. Under the management agreement, the Advisor provides the Funds with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through various committees of the Board, 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 (as measured by external as well as internal sources), technology support, new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities. Certain aspects of shareholder and transfer agency service level efficiency and the quality of securities trading activities are measured by independent third party providers and are presented in comparison to other fund groups not managed by the Advisor. The Board
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found the services provided by the Advisor to each 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 Funds, its profitability in managing each Fund (pre- and post-distribution), its overall profitability, and its financial condition. The Directors have reviewed with the Advisor the methodology used to prepare this financial information. The financial information regarding the Advisor is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services to the Funds, and the reasonableness of the current management agreement. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Funds.
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 each 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 appropriately sharing economies of scale through its competitive fee structure, offering competitive fees from fund inception, and through reinvestment in its business to provide shareholders additional content and services.
Comparison to Other Funds’ Fees. The Funds invest their non-cash assets entirely in other American Century Investments funds. The Funds do not pay an investment advisory fee to the Advisor. Rather, each Fund indirectly bears its pro rata share of the expenses incurred by the underlying funds. Each of the underlying funds pay 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 expenses, taxes, interest, extraordinary expenses, and the 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 Rule 12b-1 under the 1940 Act. The Board concluded that the underlying fund expenses incurred by each Fund were 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 Funds. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of each Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Funds were reasonable by comparison.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the existence of collateral benefits the Advisor may receive as a result of its relationship with the Funds. They concluded that the Advisor’s primary business is managing mutual 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. The Board noted that the Advisor receives proprietary research from broker-dealers that execute fund portfolio transactions and concluded that this research is likely to benefit fund shareholders. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Funds, at least in part, due to its existing infrastructure built to serve the fund complex. The Board concluded, however, that the assets of those other clients are not material to the analysis and, where applicable, may be included with the assets of certain underlying funds to determine breakpoints in the management fee schedule.
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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 Funds’ 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 Funds 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 each 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, concluded that the management agreement between each Fund and the Advisor is fair and reasonable in light of the services provided and should be renewed.
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Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain IRAs are subject to federal income tax withholding, unless you elect not to have withholding apply. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
Distributions you receive from 403(b), 457 and qualified plans 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 funds’ investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the funds is available without charge, upon request, by calling 1-800-378-9878. It is also available on the “About Us” page of American Century Investments’ website at americancentury.com 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 the “About Us” page at americancentury.com. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The funds’ Forms N-Q are available on the SEC’s website at sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The funds also make their complete
schedule of portfolio holdings for the most recent quarter of their fiscal year available on their website at ipro.americancentury.com and, upon request, by calling 1-800-378-9878.
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Other Tax Information
The following information is provided pursuant to provisions of the Internal Revenue Code.
The funds hereby designate up to the maximum amount allowable as qualified dividend income for the fiscal year ended July 31, 2014.
For corporate taxpayers, the funds hereby designate the following, or up to the maximum amount allowable, of ordinary income distributions paid during the fiscal year ended July 31, 2014 as qualified for the corporate dividends received deduction.
One Choice In Retirement Portfolio R6 | One Choice 2015 Portfolio R6 | One Choice 2020 Portfolio R6 | One Choice 2025 Portfolio R6 | One Choice 2030 Portfolio R6 |
$39,998 | $59,719 | $154,840 | $101,779 | $114,609 |
One Choice 2035 Portfolio R6 | One Choice 2040 Portfolio R6 | One Choice 2045 Portfolio R6 | One Choice 2050 Portfolio R6 | One Choice 2055 Portfolio R6 |
$98,760 | $98,318 | $82,288 | $62,227 | $4,729 |
For the fiscal year ended July 31, 2014, the funds intend to pass through to shareholders the following, or up to the maximum amount allowable, as a foreign tax credit which represents taxes paid on income derived from sources within foreign countries or possessions of the United States. During the fiscal year ended July 31, 2014, the funds earned the following income derived from
foreign sources.
Foreign Tax Credit | Foreign Source Income | |||||||
Amount | Per Outstanding Share | Amount | Per Outstanding Share | |||||
One Choice In Retirement Portfolio R6 | $ | 445 | 0.0004 | $ | 3,992 | 0.0037 | ||
One Choice 2015 Portfolio R6 | $ | 593 | 0.0003 | $ | 5,296 | 0.0025 | ||
One Choice 2020 Portfolio R6 | $ | 2,230 | 0.0006 | $ | 19,642 | 0.0050 | ||
One Choice 2025 Portfolio R6 | $ | 1,375 | 0.0004 | $ | 12,005 | 0.0032 | ||
One Choice 2030 Portfolio R6 | $ | 1,934 | 0.0006 | $ | 16,877 | 0.0051 | ||
One Choice 2035 Portfolio R6 | $ | 1,732 | 0.0006 | $ | 15,067 | 0.0052 | ||
One Choice 2040 Portfolio R6 | $ | 1,773 | 0.0007 | $ | 15,353 | 0.0061 | ||
One Choice 2045 Portfolio R6 | $ | 1,381 | 0.0007 | $ | 11,881 | 0.0058 | ||
One Choice 2050 Portfolio R6 | $ | 1,035 | 0.0007 | $ | 8,836 | 0.0058 | ||
One Choice 2055 Portfolio R6 | $ | 48 | 0.0001 | $ | 412 | 0.0006 | ||
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Notes |
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Notes |
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Notes |
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Contact Us | ipro.americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investment Professional Service Representatives | 1-800-345-6488 | |
Telecommunications Relay Services for the Deaf | 711 | |
American Century Asset Allocation Portfolios, 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. | ||
©2014 American Century Proprietary Holdings, Inc. All rights reserved. CL-ANN-83140 1409 | ||
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) | M. Jeannine Strandjord, Stephen E. Yates, Thomas A. Brown and John R. Whitten 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 2013: $167,049
FY 2014: $199,420
(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:
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For services rendered to the registrant:
FY 2013: $0
FY 2014: $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 2013: $0
FY 2014: $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 2013: $0
FY 2014: $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 2013: $0
FY 2014: $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 2013: $0
FY 2014: $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 2013: $0
FY 2014: $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- |
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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 2013: $86,621
FY 2014: $97,308
(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. |
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.
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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 registrant's second fiscal quarter of 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. 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. |
(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. |
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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 Asset Allocation Portfolios, Inc. | |||
By: | /s/ Jonathan S. Thomas | |||
Name: | Jonathan S. Thomas | |||
Title: | President | |||
Date: | September 26, 2014 | |||
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/ Jonathan S. Thomas | ||
Name: | Jonathan S. Thomas | ||
Title: | President | ||
(principal executive officer) | |||
Date: | September 26, 2014 | ||
By: | /s/ C. Jean Wade | ||
Name: | C. Jean Wade | ||
Title: | Vice President, Treasurer, and | ||
Chief Financial Officer | |||
(principal financial officer) | |||
Date: | September 26, 2014 | ||
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