DocumentUNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
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Investment Company Act file number | 811-06247 |
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AMERICAN CENTURY WORLD MUTUAL FUNDS, INC. |
(Exact name of registrant as specified in charter) |
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4500 MAIN STREET, KANSAS CITY, MISSOURI | 64111 |
(Address of principal executive offices) | (Zip Code) |
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CHARLES A. ETHERINGTON 4500 MAIN STREET, KANSAS CITY, MISSOURI 64111 |
(Name and address of agent for service) |
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Registrant’s telephone number, including area code: | 816-531-5575 |
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Date of fiscal year end: | 11-30 |
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Date of reporting period: | 05-28-2021 |
ITEM 1. REPORTS TO STOCKHOLDERS.
(a) Provided under separate cover.
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| Semiannual Report |
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| May 28, 2021 |
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| Emerging Markets Fund |
| Investor Class (TWMIX) |
| I Class (AMKIX) |
| Y Class (AEYMX) |
| A Class (AEMMX) |
| C Class (ACECX) |
| R Class (AEMRX) |
| R5 Class (AEGMX) |
| R6 Class (AEDMX) |
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President’s Letter | |
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Fund Characteristics | |
Shareholder Fee Example | |
Schedule of Investments | |
Statement of Assets and Liabilities | |
Statement of Operations | |
Statement of Changes in Net Assets | |
Notes to Financial Statements | |
Financial Highlights | |
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Liquidity Risk Management Program | |
Additional Information | |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 28, 2021. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Government Support, Vaccines Aided Market Outlook
Broad market sentiment was upbeat to start the period. Investors generally looked beyond periodic upswings in virus cases, COVID-19 lockdowns and restrictions in some regions, and uncertainty surrounding the U.S. political climate. Ongoing support from global central banks and governments helped maintain investor confidence in the financial markets and strengthen the economic backdrop.
In the U.S., improving manufacturing, employment and housing data, along with positive vaccine developments and a late-2020 federal coronavirus aid package helped sustain the upbeat tone into early 2021. Election results gave Democrats control of the White House and Congress, setting the stage for another federal aid bill in March and proposals for significant government spending down the road.
Outside the U.S., economic data improved, albeit at a slower pace. In addition, expanding worldwide vaccine distributions and ongoing reopenings helped bolster economic and earnings outlooks. This improving backdrop combined with massive monetary and fiscal support helped fuel robust gains for stocks and other riskier assets for the six-month period. Economic gains and monetary support, along with supply chain disruptions, helped push inflation higher, particularly in the U.S., where prices increased at the fastest rate in nearly 13 years. However, policymakers insisted the pricing pressures were temporary and maintained their generally upbeat outlooks.
Reopenings Will Shape Market Dynamics
The return to pre-pandemic life is progressing, and as economies throughout the world reopen and rebuild, investors likely will face renewed opportunities and challenges. Global growth data, the virus’s trajectory, supply chain normalization, and the effects of fiscal and monetary policy likely will be among the factors swaying market dynamics.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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MAY 28, 2021 | |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 97.9% |
Rights | —* |
Temporary Cash Investments | 2.1% |
Temporary Cash Investments - Securities Lending Collateral | —* |
Other Assets and Liabilities | —* |
*Category is less than 0.05% of total net assets. | |
| |
Top Five Countries | % of net assets |
China | 30.1% |
South Korea | 15.6% |
Taiwan | 14.6% |
India | 9.9% |
Brazil | 7.4% |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2020 to May 28, 2021.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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| Beginning Account Value 12/1/20 | Ending Account Value 5/28/21 | Expenses Paid During Period(1) 12/1/20 - 5/28/21 | Annualized Expense Ratio(1) |
Actual | | | | |
Investor Class | $1,000 | $1,123.60 | $6.51 | 1.25% |
I Class | $1,000 | $1,124.80 | $5.47 | 1.05% |
Y Class | $1,000 | $1,125.50 | $4.69 | 0.90% |
A Class | $1,000 | $1,122.20 | $7.81 | 1.50% |
C Class | $1,000 | $1,117.80 | $11.68 | 2.25% |
R Class | $1,000 | $1,121.10 | $9.10 | 1.75% |
R5 Class | $1,000 | $1,124.80 | $5.47 | 1.05% |
R6 Class | $1,000 | $1,125.70 | $4.69 | 0.90% |
Hypothetical | | | | |
Investor Class | $1,000 | $1,018.39 | $6.19 | 1.25% |
I Class | $1,000 | $1,019.37 | $5.20 | 1.05% |
Y Class | $1,000 | $1,020.11 | $4.46 | 0.90% |
A Class | $1,000 | $1,017.16 | $7.42 | 1.50% |
C Class | $1,000 | $1,013.49 | $11.11 | 2.25% |
R Class | $1,000 | $1,015.94 | $8.65 | 1.75% |
R5 Class | $1,000 | $1,019.37 | $5.20 | 1.05% |
R6 Class | $1,000 | $1,020.11 | $4.46 | 0.90% |
(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 179, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
MAY 28, 2021 (UNAUDITED)
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| Shares | Value |
COMMON STOCKS — 97.9% | | |
Argentina — 1.0% | | |
Globant SA(1) | 165,924 | | $ | 36,149,862 | |
Brazil — 7.4% | | |
Banco BTG Pactual SA | 1,585,600 | | 37,299,645 | |
Embraer SA, ADR(1) | 1,659,354 | | 22,218,750 | |
Gerdau SA, Preference Shares | 6,873,800 | | 43,049,453 | |
Locaweb Servicos de Internet SA | 4,069,522 | | 20,512,758 | |
Magazine Luiza SA | 4,951,472 | | 19,295,891 | |
Randon SA Implementos e Participacoes, Preference Shares | 4,833,500 | | 13,753,824 | |
Suzano SA(1) | 2,264,400 | | 26,764,211 | |
Vale SA, ADR | 3,342,195 | | 71,924,037 | |
| | 254,818,569 | |
China — 30.1% | | |
Alibaba Group Holding Ltd., ADR(1) | 706,637 | | 151,192,052 | |
Anhui Conch Cement Co. Ltd., H Shares | 2,216,000 | | 13,719,141 | |
Baoshan Iron & Steel Co. Ltd., A Shares | 8,126,481 | | 10,075,056 | |
China Construction Bank Corp., H Shares | 54,801,000 | | 45,152,002 | |
China Education Group Holdings Ltd. | 9,550,000 | | 24,124,342 | |
China Gas Holdings Ltd. | 4,976,000 | | 18,925,328 | |
China Tourism Group Duty Free Corp. Ltd., A Shares | 1,000,917 | | 54,310,925 | |
CIFI Holdings Group Co. Ltd. | 39,800,888 | | 34,683,651 | |
Contemporary Amperex Technology Co. Ltd., A Shares | 462,700 | | 29,809,849 | |
Country Garden Services Holdings Co. Ltd. | 3,568,000 | | 36,205,179 | |
Ganfeng Lithium Co. Ltd., H Shares(2) | 2,595,200 | | 34,903,485 | |
GDS Holdings Ltd., ADR(1) | 338,741 | | 25,480,098 | |
Industrial & Commercial Bank of China Ltd., H Shares | 25,397,645 | | 16,673,793 | |
Kweichow Moutai Co. Ltd., A Shares | 106,310 | | 37,309,566 | |
Li Ning Co. Ltd. | 3,989,000 | | 36,674,068 | |
Meituan, Class B(1) | 1,075,300 | | 37,688,908 | |
New Oriental Education & Technology Group, Inc., ADR(1) | 1,563,050 | | 15,990,001 | |
Nine Dragons Paper Holdings Ltd. | 20,268,000 | | 31,993,655 | |
Ping An Insurance Group Co. of China Ltd., H Shares | 2,538,000 | | 27,723,007 | |
Sany Heavy Industry Co. Ltd., A Shares | 3,749,980 | | 18,024,103 | |
Shenzhou International Group Holdings Ltd. | 1,376,800 | | 36,293,012 | |
TAL Education Group, ADR(1) | 350,808 | | 14,021,796 | |
Tencent Holdings Ltd. | 2,905,400 | | 227,146,770 | |
Wuxi Biologics Cayman, Inc.(1) | 3,420,000 | | 50,756,836 | |
| | 1,028,876,623 | |
Hungary — 1.4% | | |
OTP Bank Nyrt(1) | 877,810 | | 48,184,397 | |
India — 9.9% | | |
Asian Paints Ltd. | 498,803 | | 20,233,557 | |
Bajaj Finance Ltd.(1) | 343,555 | | 26,552,881 | |
Bata India Ltd. | 643,473 | | 13,715,387 | |
HDFC Bank Ltd.(1) | 3,576,662 | | 74,195,943 | |
ICICI Bank Ltd., ADR(1) | 2,605,029 | | 46,916,572 | |
Indraprastha Gas Ltd. | 1,844,144 | | 13,062,829 | |
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| Shares | Value |
Infosys Ltd., ADR | 2,179,194 | | $ | 42,145,612 | |
Jubilant Foodworks Ltd.(1) | 730,692 | | 31,433,943 | |
Tata Consultancy Services Ltd. | 684,706 | | 29,679,466 | |
UltraTech Cement Ltd. | 434,671 | | 39,564,109 | |
| | 337,500,299 | |
Indonesia — 1.7% | | |
Bank Rakyat Indonesia Persero Tbk PT | 145,958,400 | | 41,589,495 | |
Telekomunikasi Indonesia Persero Tbk PT | 68,550,900 | | 15,717,209 | |
| | 57,306,704 | |
Luxembourg — 0.6% | | |
Ternium SA, ADR | 521,382 | | 19,087,795 | |
Mexico — 3.7% | | |
Cemex SAB de CV, ADR(1) | 7,913,003 | | 65,519,665 | |
Grupo Financiero Banorte SAB de CV | 5,979,044 | | 40,782,856 | |
Wal-Mart de Mexico SAB de CV | 6,544,675 | | 20,894,461 | |
| | 127,196,982 | |
Philippines — 0.5% | | |
Ayala Land, Inc. | 24,231,200 | | 17,484,521 | |
Russia — 3.2% | | |
Novatek PJSC, GDR | 135,655 | | 27,005,118 | |
Sberbank of Russia PJSC, ADR (London) | 2,176,695 | | 36,642,249 | |
Yandex NV, A Shares(1) | 687,615 | | 46,441,517 | |
| | 110,088,884 | |
Saudi Arabia — 0.9% | | |
Al Rajhi Bank | 1,142,276 | | 31,400,595 | |
Singapore — 0.5% | | |
Sea Ltd., ADR(1) | 66,216 | | 16,768,540 | |
South Africa — 4.3% | | |
Capitec Bank Holdings Ltd. | 267,034 | | 32,051,394 | |
Kumba Iron Ore Ltd.(2) | 662,975 | | 29,540,080 | |
Naspers Ltd., N Shares | 381,741 | | 84,145,991 | |
| | 145,737,465 | |
South Korea — 15.6% | | |
CJ Logistics Corp.(1) | 178,357 | | 27,187,516 | |
Cosmax, Inc.(1) | 130,101 | | 14,683,696 | |
Hyundai Motor Co. | 262,452 | | 54,468,809 | |
LG Chem Ltd. | 40,817 | | 30,418,315 | |
Mando Corp.(1) | 622,156 | | 36,130,236 | |
NAVER Corp. | 146,086 | | 46,870,790 | |
Samsung Biologics Co. Ltd.(1) | 32,126 | | 23,846,587 | |
Samsung Electro-Mechanics Co. Ltd. | 328,476 | | 49,484,379 | |
Samsung Electronics Co. Ltd. | 2,505,813 | | 179,867,868 | |
Samsung SDI Co. Ltd. | 75,726 | | 43,463,913 | |
SK Hynix, Inc. | 229,529 | | 25,735,036 | |
| | 532,157,145 | |
Taiwan — 14.6% | | |
ASPEED Technology, Inc. | 324,000 | | 25,711,033 | |
Chailease Holding Co. Ltd. | 9,558,338 | | 72,192,138 | |
Formosa Plastics Corp. | 5,219,000 | | 19,091,136 | |
MediaTek, Inc. | 1,366,000 | | 47,191,318 | |
Merida Industry Co. Ltd. | 1,979,000 | | 22,892,224 | |
President Chain Store Corp. | 1,338,000 | | 12,643,988 | |
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| Shares | Value |
Taiwan Semiconductor Manufacturing Co. Ltd. | 13,314,939 | | $ | 282,705,091 | |
Win Semiconductors Corp. | 1,322,000 | | 15,508,545 | |
| | 497,935,473 | |
Thailand — 2.0% | | |
CP ALL PCL | 10,543,100 | | 20,480,271 | |
Muangthai Capital PCL | 6,961,000 | | 13,676,986 | |
PTT Exploration & Production PCL | 8,831,900 | | 33,166,700 | |
| | 67,323,957 | |
Turkey — 0.5% | | |
BIM Birlesik Magazalar AS | 2,106,988 | | 15,811,292 | |
TOTAL COMMON STOCKS (Cost $2,158,362,626) | | 3,343,829,103 | |
RIGHTS† | | |
South Korea† | | |
Cosmax, Inc.(1)(2) (Cost $—) | 13,469 | 277,761 | |
TEMPORARY CASH INVESTMENTS — 2.1% | | |
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.75%, 5/15/25 - 8/15/47, valued at $15,838,932), in a joint trading account at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $15,501,095) | | 15,501,095 | |
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.5%, 5/15/46, valued at $26,355,847), in a joint trading account at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $25,839,000) | | 25,839,000 | |
State Street Institutional U.S. Government Money Market Fund, Premier Class | 31,254,754 | | 31,254,754 | |
TOTAL TEMPORARY CASH INVESTMENTS (Cost $72,594,849) | | 72,594,849 | |
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3)† |
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $735,795) | 735,795 | 735,795 | |
TOTAL INVESTMENT SECURITIES — 100.0% (Cost $2,231,693,270) | | 3,417,437,508 | |
OTHER ASSETS AND LIABILITIES† | | (578,732) | |
TOTAL NET ASSETS — 100.0% | | $ | 3,416,858,776 | |
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MARKET SECTOR DIVERSIFICATION |
(as a % of net assets) | |
Information Technology | 23.9 | % |
Consumer Discretionary | 18.7 | % |
Financials | 17.3 | % |
Materials | 13.3 | % |
Communication Services | 10.3 | % |
Industrials | 4.3 | % |
Consumer Staples | 3.6 | % |
Health Care | 2.2 | % |
Energy | 1.8 | % |
Real Estate | 1.5 | % |
Utilities | 1.0 | % |
Temporary Cash Investments | 2.1 | % |
Temporary Cash Investments - Securities Lending Collateral | —* |
Other Assets and Liabilities | —* |
*Category is less than 0.05% of total net assets.
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NOTES TO SCHEDULE OF INVESTMENTS |
ADR | - | American Depositary Receipt |
GDR | - | Global Depositary Receipt |
†Category is less than 0.05% of total net assets.
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $50,757,391. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $56,446,165, which includes securities collateral of $55,710,370.
See Notes to Financial Statements.
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Statement of Assets and Liabilities |
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MAY 28, 2021 (UNAUDITED) | |
Assets | |
Investment securities, at value (cost of $2,230,957,475) — including $50,757,391 of securities on loan | $ | 3,416,701,713 | |
Investment made with cash collateral received for securities on loan, at value (cost of $735,795) | 735,795 | |
Total investment securities, at value (cost of $2,231,693,270) | 3,417,437,508 | |
Receivable for capital shares sold | 6,512,452 | |
Dividends and interest receivable | 3,763,686 | |
Securities lending receivable | 22,362 | |
Other assets | 49,833 | |
| 3,427,785,841 | |
| |
Liabilities | |
Payable for collateral received for securities on loan | 735,795 | |
Payable for capital shares redeemed | 3,860,191 | |
Accrued management fees | 2,987,852 | |
Distribution and service fees payable | 50,279 | |
Accrued foreign taxes | 3,273,165 | |
Accrued other expenses | 19,783 | |
| 10,927,065 | |
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Net Assets | $ | 3,416,858,776 | |
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Net Assets Consist of: | |
Capital (par value and paid-in surplus) | $ | 2,527,316,985 | |
Distributable earnings | 889,541,791 | |
| $ | 3,416,858,776 | |
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| Net Assets | Shares Outstanding | Net Asset Value Per Share |
Investor Class, $0.01 Par Value | $611,037,825 | 40,148,562 | $15.22 |
I Class, $0.01 Par Value | $1,844,597,431 | 118,243,592 | $15.60 |
Y Class, $0.01 Par Value | $25,379,763 | 1,624,387 | $15.62 |
A Class, $0.01 Par Value | $103,295,593 | 7,032,889 | $14.69* |
C Class, $0.01 Par Value | $29,967,805 | 2,256,630 | $13.28 |
R Class, $0.01 Par Value | $9,283,823 | 629,124 | $14.76 |
R5 Class, $0.01 Par Value | $4,397,915 | 281,708 | $15.61 |
R6 Class, $0.01 Par Value | $788,898,621 | 50,576,696 | $15.60 |
*Maximum offering price $15.59 (net asset value divided by 0.9425).
See Notes to Financial Statements.
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FOR THE SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) | |
Investment Income (Loss) | |
Income: | |
Dividends (net of foreign taxes withheld of $3,323,441) | $ | 22,636,497 | |
Securities lending, net | 102,739 | |
Interest | 3,689 | |
| 22,742,925 | |
| |
Expenses: | |
Management fees | 17,345,164 | |
Distribution and service fees: | |
A Class | 126,688 | |
C Class | 149,602 | |
R Class | 23,111 | |
Directors' fees and expenses | 41,659 | |
Other expenses | 22,324 | |
| 17,708,548 | |
| |
Net investment income (loss) | 5,034,377 | |
| |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on: | |
Investment transactions (net of foreign tax expenses paid (refunded) of $(310)) | 99,671,664 | |
Foreign currency translation transactions | (1,162,436) | |
| 98,509,228 | |
| |
Change in net unrealized appreciation (depreciation) on: | |
Investments (includes (increase) decrease in accrued foreign taxes of $(2,207,629)) | 250,570,993 | |
Translation of assets and liabilities in foreign currencies | (3,310) | |
| 250,567,683 | |
| |
Net realized and unrealized gain (loss) | 349,076,911 | |
| |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 354,111,288 | |
See Notes to Financial Statements.
| | |
Statement of Changes in Net Assets |
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SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2020 |
Increase (Decrease) in Net Assets | May 28, 2021 | November 30, 2020 |
Operations | | |
Net investment income (loss) | $ | 5,034,377 | | $ | 11,919,347 | |
Net realized gain (loss) | 98,509,228 | | (75,677,072) | |
Change in net unrealized appreciation (depreciation) | 250,567,683 | | 587,035,980 | |
Net increase (decrease) in net assets resulting from operations | 354,111,288 | | 523,278,255 | |
| | |
Distributions to Shareholders | | |
From earnings: | | |
Investor Class | (3,436,076) | | (8,013,736) | |
I Class | (12,395,337) | | (21,862,436) | |
Y Class | (317,596) | | (310,424) | |
A Class | (298,238) | | (874,154) | |
C Class | — | | (114,160) | |
R Class | (3,177) | | (57,761) | |
R5 Class | (30,070) | | (44,744) | |
R6 Class | (6,236,864) | | (8,006,334) | |
Decrease in net assets from distributions | (22,717,358) | | (39,283,749) | |
| | |
Capital Share Transactions | | |
Net increase (decrease) in net assets from capital share transactions (Note 5) | 241,032,022 | | (110,421,098) | |
| | |
Net increase (decrease) in net assets | 572,425,952 | | 373,573,408 | |
| | |
Net Assets | | |
Beginning of period | 2,844,432,824 | | 2,470,859,416 | |
End of period | $ | 3,416,858,776 | | $ | 2,844,432,824 | |
See Notes to Financial Statements.
| | |
Notes to Financial Statements |
MAY 28, 2021 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Emerging Markets Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital growth.
The fund offers the Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value (NAV) per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported NAV per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 28, 2021.
| | | | | | | | | | | | | | | | | |
Remaining Contractual Maturity of Agreements |
| Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total |
Securities Lending Transactions(1) | | | | |
Common Stocks | $ | 602,291 | | — | | — | | — | | $ | 602,291 | |
Rights | 133,504 | | — | | — | | — | | 133,504 | |
Total Borrowings | $ | 735,795 | | — | | — | | — | | $ | 735,795 | |
Gross amount of recognized liabilities for securities lending transactions | $ | 735,795 | |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class.
The annual management fee for each class is as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
Investor Class | I Class | Y Class | A Class | C Class | R Class | R5 Class | R6 Class |
1.25% | 1.05% | 0.90% | 1.25% | 1.25% | 1.25% | 1.05% | 0.90% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 28, 2021 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. There were no interfund transactions during the period.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 28, 2021 were $751,800,491 and $565,997,182, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
| | | | | | | | | | | | | | |
| Six months ended May 28, 2021 | Year ended November 30, 2020 |
| Shares | Amount | Shares | Amount |
Investor Class/Shares Authorized | 1,100,000,000 | | | 1,100,000,000 | | |
Sold | 5,280,595 | | $ | 81,430,981 | | 12,495,933 | | $ | 134,906,888 | |
Issued in reinvestment of distributions | 222,669 | | 3,290,664 | | 722,447 | | 7,801,863 | |
Redeemed | (8,091,225) | | (122,398,868) | | (24,386,669) | | (277,708,979) | |
| (2,587,961) | | (37,677,223) | | (11,168,289) | | (135,000,228) | |
I Class/Shares Authorized | 1,520,000,000 | | | 1,520,000,000 | | |
Sold | 23,705,151 | | 370,597,997 | | 49,164,195 | | 563,271,691 | |
Issued in reinvestment of distributions | 763,688 | | 11,554,599 | | 1,776,798 | | 19,811,353 | |
Redeemed | (16,048,619) | | (252,258,082) | | (55,821,848) | | (622,419,153) | |
| 8,420,220 | | 129,894,514 | | (4,880,855) | | (39,336,109) | |
Y Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | 377,554 | | 5,887,857 | | 1,038,304 | | 11,973,089 | |
Issued in reinvestment of distributions | 19,691 | | 298,311 | | 27,351 | | 306,119 | |
Redeemed | (927,132) | | (14,393,006) | | (173,558) | | (1,986,251) | |
| (529,887) | | (8,206,838) | | 892,097 | | 10,292,957 | |
A Class/Shares Authorized | 100,000,000 | | | 100,000,000 | | |
Sold | 1,447,864 | | 21,180,626 | | 2,676,295 | | 29,022,024 | |
Issued in reinvestment of distributions | 12,777 | | 182,202 | | 53,746 | | 556,804 | |
Redeemed | (1,167,901) | | (17,107,746) | | (3,247,159) | | (34,383,970) | |
| 292,740 | | 4,255,082 | | (517,118) | | (4,805,142) | |
C Class/Shares Authorized | 45,000,000 | | | 45,000,000 | | |
Sold | 287,546 | | 3,865,476 | | 192,283 | | 2,004,278 | |
Issued in reinvestment of distributions | — | | — | | 10,261 | | 96,660 | |
Redeemed | (312,383) | | (4,154,038) | | (977,404) | | (9,501,689) | |
| (24,837) | | (288,562) | | (774,860) | | (7,400,751) | |
R Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | 227,863 | | 3,358,284 | | 257,538 | | 2,908,336 | |
Issued in reinvestment of distributions | — | | 74 | | 5,549 | | 57,761 | |
Redeemed | (165,589) | | (2,422,018) | | (323,560) | | (3,545,976) | |
| 62,274 | | 936,340 | | (60,473) | | (579,879) | |
R5 Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | 33,566 | | 512,892 | | 181,608 | | 2,248,341 | |
Issued in reinvestment of distributions | 1,934 | | 29,285 | | 4,015 | | 44,739 | |
Redeemed | (30,066) | | (466,856) | | (120,565) | | (1,477,816) | |
| 5,434 | | 75,321 | | 65,058 | | 815,264 | |
R6 Class/Shares Authorized | 450,000,000 | | | 450,000,000 | | |
Sold | 15,182,047 | | 237,049,707 | | 17,846,785 | | 207,338,285 | |
Issued in reinvestment of distributions | 399,613 | | 6,042,152 | | 690,876 | | 7,733,183 | |
Redeemed | (5,838,285) | | (91,048,471) | | (12,752,599) | | (149,478,678) | |
| 9,743,375 | | 152,043,388 | | 5,785,062 | | 65,592,790 | |
Net increase (decrease) | 15,381,358 | | $ | 241,032,022 | | (10,659,378) | | $ | (110,421,098) | |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
| | | | | | | | | | | |
| Level 1 | Level 2 | Level 3 |
Assets | | | |
Investment Securities | | | |
Common Stocks | | | |
Argentina | $ | 36,149,862 | | — | | — | |
Brazil | 94,142,787 | | $ | 160,675,782 | | — | |
China | 206,683,947 | | 822,192,676 | | — | |
India | 89,062,184 | | 248,438,115 | | — | |
Luxembourg | 19,087,795 | | — | | — | |
Mexico | 65,519,665 | | 61,677,317 | | — | |
Russia | 46,441,517 | | 63,647,367 | | — | |
Singapore | 16,768,540 | | — | | — | |
Other Countries | — | | 1,413,341,549 | | — | |
Rights | — | | 277,761 | | — | |
Temporary Cash Investments | 31,254,754 | | 41,340,095 | | — | |
Temporary Cash Investments - Securities Lending Collateral | 735,795 | | — | | — | |
| $ | 605,846,846 | | $ | 2,811,590,662 | | — | |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
| | | | | |
Federal tax cost of investments | $ | 2,232,225,873 | |
Gross tax appreciation of investments | $ | 1,224,734,447 | |
Gross tax depreciation of investments | (39,522,812) | |
Net tax appreciation (depreciation) of investments | $ | 1,185,211,635 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2020, the fund had accumulated short-term capital losses of $(294,244,851) and accumulated long-term capital losses of $(89,958,961), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | | | | |
Per-Share Data | | Ratios and Supplemental Data | | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
Investor Class | | | | | | | | | | | | | |
2021(3) | $13.62 | 0.01 | 1.67 | 1.68 | (0.08) | — | (0.08) | $15.22 | 12.36% | 1.25%(4) | 1.25%(4) | 0.14%(4) | 0.14%(4) | 18% | $611,038 | |
2020 | $11.25 | 0.04 | 2.48 | 2.52 | (0.15) | — | (0.15) | $13.62 | 22.79% | 1.26% | 1.26% | 0.33% | 0.33% | 30% | $582,036 | |
2019 | $10.19 | 0.17 | 0.94 | 1.11 | (0.05) | — | (0.05) | $11.25 | 10.99% | 1.25% | 1.25% | 1.59% | 1.59% | 39% | $606,668 | |
2018 | $12.00 | 0.08 | (1.80) | (1.72) | (0.03) | (0.06) | (0.09) | $10.19 | (14.57)% | 1.18% | 1.29% | 0.71% | 0.60% | 36% | $980,765 | |
2017 | $8.57 | 0.02 | 3.44 | 3.46 | (0.03) | — | (0.03) | $12.00 | 40.46% | 1.18% | 1.50% | 0.19% | (0.13)% | 47% | $883,436 | |
2016 | $8.10 | 0.02 | 0.46 | 0.48 | (0.01) | — | (0.01) | $8.57 | 5.95% | 1.38% | 1.63% | 0.30% | 0.05% | 59% | $470,280 | |
I Class | | | | | | | | | | | | | |
2021(3) | $13.97 | 0.03 | 1.71 | 1.74 | (0.11) | — | (0.11) | $15.60 | 12.48% | 1.05%(4) | 1.05%(4) | 0.34%(4) | 0.34%(4) | 18% | $1,844,597 | |
2020 | $11.56 | 0.06 | 2.54 | 2.60 | (0.19) | — | (0.19) | $13.97 | 22.94% | 1.06% | 1.06% | 0.53% | 0.53% | 30% | $1,534,445 | |
2019 | $10.46 | 0.20 | 0.97 | 1.17 | (0.07) | — | (0.07) | $11.56 | 11.20% | 1.05% | 1.05% | 1.79% | 1.79% | 39% | $1,325,801 | |
2018 | $12.32 | 0.11 | (1.85) | (1.74) | (0.06) | (0.06) | (0.12) | $10.46 | (14.35)% | 0.98% | 1.09% | 0.91% | 0.80% | 36% | $897,336 | |
2017 | $8.79 | 0.04 | 3.54 | 3.58 | (0.05) | — | (0.05) | $12.32 | 40.86% | 0.94% | 1.26% | 0.43% | 0.11% | 47% | $505,000 | |
2016 | $8.31 | 0.04 | 0.47 | 0.51 | (0.03) | — | (0.03) | $8.79 | 6.13% | 1.18% | 1.43% | 0.50% | 0.25% | 59% | $37,036 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | | | | |
Per-Share Data | | Ratios and Supplemental Data | | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
Y Class | | | | | | | | | | | | | |
2021(3) | $14.00 | 0.04 | 1.71 | 1.75 | (0.13) | — | (0.13) | $15.62 | 12.55% | 0.90%(4) | 0.90%(4) | 0.49%(4) | 0.49%(4) | 18% | $25,380 | |
2020 | $11.60 | 0.08 | 2.54 | 2.62 | (0.22) | — | (0.22) | $14.00 | 23.09% | 0.91% | 0.91% | 0.68% | 0.68% | 30% | $30,169 | |
2019 | $10.49 | 0.26 | 0.94 | 1.20 | (0.09) | — | (0.09) | $11.60 | 11.43% | 0.90% | 0.90% | 1.94% | 1.94% | 39% | $14,638 | |
2018 | $12.34 | 0.08 | (1.81) | (1.73) | (0.06) | (0.06) | (0.12) | $10.49 | (14.23)% | 0.83% | 0.94% | 1.06% | 0.95% | 36% | $4,724 | |
2017(5) | $9.79 | 0.07 | 2.48 | 2.55 | — | — | — | $12.34 | 26.05% | 0.77%(4) | 1.12%(4) | 0.91%(4) | 0.56%(4) | 47%(6) | $6 | |
A Class | | | | | | | | | | | | | |
2021(3) | $13.13 | (0.01) | 1.61 | 1.60 | (0.04) | — | (0.04) | $14.69 | 12.22% | 1.50%(4) | 1.50%(4) | (0.11)%(4) | (0.11)%(4) | 18% | $103,296 | |
2020 | $10.84 | 0.01 | 2.40 | 2.41 | (0.12) | — | (0.12) | $13.13 | 22.50% | 1.51% | 1.51% | 0.08% | 0.08% | 30% | $88,485 | |
2019 | $9.81 | 0.14 | 0.91 | 1.05 | (0.02) | — | (0.02) | $10.84 | 10.71% | 1.50% | 1.50% | 1.34% | 1.34% | 39% | $78,704 | |
2018 | $11.57 | 0.05 | (1.75) | (1.70) | — | (0.06) | (0.06) | $9.81 | (14.80)% | 1.43% | 1.54% | 0.46% | 0.35% | 36% | $72,711 | |
2017 | $8.26 | —(7) | 3.32 | 3.32 | (0.01) | — | (0.01) | $11.57 | 40.16% | 1.43% | 1.75% | (0.06)% | (0.38)% | 47% | $61,586 | |
2016 | $7.82 | 0.01 | 0.43 | 0.44 | — | — | — | $8.26 | 5.63% | 1.63% | 1.88% | 0.05% | (0.20)% | 59% | $37,743 | |
C Class | | | | | | | | | | | | |
2021(3) | $11.88 | (0.06) | 1.46 | 1.40 | — | — | — | $13.28 | 11.78% | 2.25%(4) | 2.25%(4) | (0.86)%(4) | (0.86)%(4) | 18% | $29,968 | |
2020 | $9.82 | (0.07) | 2.17 | 2.10 | (0.04) | — | (0.04) | $11.88 | 21.48% | 2.26% | 2.26% | (0.67)% | (0.67)% | 30% | $27,101 | |
2019 | $8.93 | 0.05 | 0.84 | 0.89 | — | — | — | $9.82 | 9.97% | 2.25% | 2.25% | 0.59% | 0.59% | 39% | $30,004 | |
2018 | $10.61 | (0.03) | (1.59) | (1.62) | — | (0.06) | (0.06) | $8.93 | (15.39)% | 2.18% | 2.29% | (0.29)% | (0.40)% | 36% | $31,871 | |
2017 | $7.63 | (0.08) | 3.06 | 2.98 | — | — | — | $10.61 | 39.06% | 2.16% | 2.48% | (0.79)% | (1.11)% | 47% | $24,972 | |
2016 | $7.28 | (0.05) | 0.40 | 0.35 | — | — | — | $7.63 | 4.81% | 2.38% | 2.63% | (0.70)% | (0.95)% | 59% | $5,840 | |
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For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | | | | |
Per-Share Data | | Ratios and Supplemental Data | | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
R Class | | | | | | | | | | | | | |
2021(3) | $13.17 | (0.03) | 1.63 | 1.60 | (0.01) | — | (0.01) | $14.76 | 12.11% | 1.75%(4) | 1.75%(4) | (0.36)%(4) | (0.36)%(4) | 18% | $9,284 | |
2020 | $10.88 | (0.02) | 2.40 | 2.38 | (0.09) | — | (0.09) | $13.17 | 22.11% | 1.76% | 1.76% | (0.17)% | (0.17)% | 30% | $7,466 | |
2019 | $9.85 | 0.12 | 0.91 | 1.03 | — | — | — | $10.88 | 10.46% | 1.75% | 1.75% | 1.09% | 1.09% | 39% | $6,825 | |
2018 | $11.64 | 0.02 | (1.75) | (1.73) | — | (0.06) | (0.06) | $9.85 | (14.97)% | 1.68% | 1.79% | 0.21% | 0.10% | 36% | $5,825 | |
2017 | $8.33 | (0.02) | 3.33 | 3.31 | — | — | — | $11.64 | 39.74% | 1.68% | 2.00% | (0.31)% | (0.63)% | 47% | $4,811 | |
2016 | $7.90 | (0.02) | 0.45 | 0.43 | — | — | — | $8.33 | 5.44% | 1.88% | 2.13% | (0.20)% | (0.45)% | 59% | $2,340 | |
R5 Class | | | | | | | | | | | | | |
2021(3) | $13.98 | 0.03 | 1.71 | 1.74 | (0.11) | — | (0.11) | $15.61 | 12.48% | 1.05%(4) | 1.05%(4) | 0.34%(4) | 0.34%(4) | 18% | $4,398 | |
2020 | $11.57 | 0.06 | 2.54 | 2.60 | (0.19) | — | (0.19) | $13.98 | 22.92% | 1.06% | 1.06% | 0.53% | 0.53% | 30% | $3,863 | |
2019 | $10.47 | 0.20 | 0.97 | 1.17 | (0.07) | — | (0.07) | $11.57 | 11.19% | 1.05% | 1.05% | 1.79% | 1.79% | 39% | $2,444 | |
2018 | $12.32 | 0.12 | (1.86) | (1.74) | (0.05) | (0.06) | (0.11) | $10.47 | (14.33)% | 0.98% | 1.09% | 0.91% | 0.80% | 36% | $4,521 | |
2017(5) | $9.78 | 0.03 | 2.51 | 2.54 | — | — | — | $12.32 | 25.97% | 0.92%(4) | 1.27%(4) | 0.78%(4) | 0.43%(4) | 47%(6) | $46 | |
R6 Class | | | | | | | | | | | | | |
2021(3) | $13.98 | 0.04 | 1.71 | 1.75 | (0.13) | — | (0.13) | $15.60 | 12.57% | 0.90%(4) | 0.90%(4) | 0.49%(4) | 0.49%(4) | 18% | $788,899 | |
2020 | $11.58 | 0.08 | 2.54 | 2.62 | (0.22) | — | (0.22) | $13.98 | 23.13% | 0.91% | 0.91% | 0.68% | 0.68% | 30% | $570,868 | |
2019 | $10.48 | 0.23 | 0.96 | 1.19 | (0.09) | — | (0.09) | $11.58 | 11.45% | 0.90% | 0.90% | 1.94% | 1.94% | 39% | $405,776 | |
2018 | $12.34 | 0.12 | (1.84) | (1.72) | (0.08) | (0.06) | (0.14) | $10.48 | (14.28)% | 0.83% | 0.94% | 1.06% | 0.95% | 36% | $239,031 | |
2017 | $8.81 | 0.06 | 3.53 | 3.59 | (0.06) | — | (0.06) | $12.34 | 40.98% | 0.83% | 1.15% | 0.54% | 0.22% | 47% | $92,470 | |
2016 | $8.33 | 0.06 | 0.46 | 0.52 | (0.04) | — | (0.04) | $8.81 | 6.27% | 1.03% | 1.28% | 0.65% | 0.40% | 59% | $34,065 | |
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Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)Six months ended May 28, 2021 (unaudited).
(4)Annualized.
(5)April 10, 2017 (commencement of sale) through November 30, 2017.
(6)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2017.
(7)Per-share amount was less than $0.005.
See Notes to Financial Statements.
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Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2019 through December 31, 2020. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century Investments’ website at americancentury.com/proxy and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
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American Century World Mutual Funds, Inc. | |
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Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |
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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. | |
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©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92633 2107 | |
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| |
| Semiannual Report |
| |
| May 28, 2021 |
| |
| Emerging Markets Small Cap Fund |
| Investor Class (AECVX) |
| I Class (AECSX) |
| A Class (AECLX) |
| C Class (AECHX) |
| R Class (AECMX) |
| R6 Class (AECTX) |
| | | | | |
President’s Letter | |
| |
| |
Fund Characteristics | |
Shareholder Fee Example | |
Schedule of Investments | |
Statement of Assets and Liabilities | |
Statement of Operations | |
Statement of Changes in Net Assets | |
Notes to Financial Statements | |
Financial Highlights | |
| |
| |
| |
| |
Liquidity Risk Management Program | |
Additional Information | |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 28, 2021. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Government Support, Vaccines Aided Market Outlook
Broad market sentiment was upbeat to start the period. Investors generally looked beyond periodic upswings in virus cases, COVID-19 lockdowns and restrictions in some regions, and uncertainty surrounding the U.S. political climate. Ongoing support from global central banks and governments helped maintain investor confidence in the financial markets and strengthen the economic backdrop.
In the U.S., improving manufacturing, employment and housing data, along with positive vaccine developments and a late-2020 federal coronavirus aid package helped sustain the upbeat tone into early 2021. Election results gave Democrats control of the White House and Congress, setting the stage for another federal aid bill in March and proposals for significant government spending down the road.
Outside the U.S., economic data improved, albeit at a slower pace. In addition, expanding worldwide vaccine distributions and ongoing reopenings helped bolster economic and earnings outlooks. This improving backdrop combined with massive monetary and fiscal support helped fuel robust gains for stocks and other riskier assets for the six-month period. Economic gains and monetary support, along with supply chain disruptions, helped push inflation higher, particularly in the U.S., where prices increased at the fastest rate in nearly 13 years. However, policymakers insisted the pricing pressures were temporary and maintained their generally upbeat outlooks.
Reopenings Will Shape Market Dynamics
The return to pre-pandemic life is progressing, and as economies throughout the world reopen and rebuild, investors likely will face renewed opportunities and challenges. Global growth data, the virus’s trajectory, supply chain normalization, and the effects of fiscal and monetary policy likely will be among the factors swaying market dynamics.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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MAY 28, 2021 | |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 97.4% |
Exchange-Traded Funds | 2.6% |
Rights | —* |
Temporary Cash Investments | 0.3% |
Other Assets and Liabilities | (0.3)% |
*Category is less than 0.05% of total net assets. | |
| |
Top Five Countries* | % of net assets |
India | 17.7% |
Taiwan | 15.7% |
South Korea | 14.1% |
China | 12.7% |
Brazil | 9.9% |
*Exposure indicated excludes Exchange-Traded Funds. The Schedule of Investments provides additional information on the fund's portfolio holdings.
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2020 to May 28, 2021.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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| Beginning Account Value 12/1/20 | Ending Account Value 5/28/21 | Expenses Paid During Period(1) 12/1/20 - 5/28/21 | Annualized Expense Ratio(1) |
Actual | | | | |
Investor Class | $1,000 | $1,179.80 | $7.48 | 1.40% |
I Class | $1,000 | $1,181.40 | $6.42 | 1.20% |
A Class | $1,000 | $1,177.60 | $8.81 | 1.65% |
C Class | $1,000 | $1,174.00 | $12.79 | 2.40% |
R Class | $1,000 | $1,176.50 | $10.14 | 1.90% |
R6 Class | $1,000 | $1,181.60 | $5.62 | 1.05% |
Hypothetical | | | | |
Investor Class | $1,000 | $1,017.66 | $6.93 | 1.40% |
I Class | $1,000 | $1,018.64 | $5.94 | 1.20% |
A Class | $1,000 | $1,016.43 | $8.16 | 1.65% |
C Class | $1,000 | $1,012.75 | $11.85 | 2.40% |
R Class | $1,000 | $1,015.20 | $9.39 | 1.90% |
R6 Class | $1,000 | $1,019.37 | $5.20 | 1.05% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 179, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
MAY 28, 2021 (UNAUDITED)
| | | | | | | | |
| Shares | Value |
COMMON STOCKS — 97.4% | | |
Argentina — 1.1% | | |
Globant SA(1) | 506 | | $ | 110,242 | |
Brazil — 9.9% | | |
Banco Inter SA | 19,482 | | 248,922 | |
Embraer SA, ADR(1) | 8,199 | | 109,784 | |
Fleury SA | 9,700 | | 49,322 | |
Locaweb Servicos de Internet SA | 14,185 | | 71,501 | |
Metalurgica Gerdau SA, Preference Shares | 67,700 | | 190,693 | |
Petro Rio SA(1) | 40,600 | | 153,077 | |
Randon SA Implementos e Participacoes, Preference Shares | 47,500 | | 135,162 | |
| | 958,461 | |
China — 12.7% | | |
21Vianet Group, Inc., ADR(1) | 2,628 | | 58,657 | |
China East Education Holdings Ltd.(1) | 30,000 | | 64,972 | |
China Education Group Holdings Ltd. | 44,000 | | 111,149 | |
China Lesso Group Holdings Ltd. | 46,000 | | 116,557 | |
China Yongda Automobiles Services Holdings Ltd. | 69,500 | | 122,587 | |
CIFI Holdings Group Co. Ltd. | 88,570 | | 77,183 | |
Estun Automation Co. Ltd., A Shares(1) | 16,400 | | 83,918 | |
Far East Horizon Ltd.(2) | 79,000 | | 86,475 | |
Hainan Meilan International Airport Co. Ltd., H Shares(1) | 12,000 | | 51,088 | |
Haitian International Holdings Ltd. | 24,000 | | 86,829 | |
Li Ning Co. Ltd. | 12,500 | | 114,923 | |
Maanshan Iron & Steel Co. Ltd., H Shares | 122,000 | | 59,545 | |
Minth Group Ltd. | 12,000 | | 50,752 | |
MMG Ltd.(1) | 152,000 | | 92,404 | |
Xinte Energy Co. Ltd., H Shares | 23,200 | | 50,524 | |
| | 1,227,563 | |
Egypt — 0.9% | | |
Fawry for Banking & Payment Technology Services S.A.E.(1) | 59,026 | | 82,413 | |
Greece — 1.8% | | |
JUMBO SA | 4,150 | | 79,836 | |
OPAP SA | 5,867 | | 92,205 | |
| | 172,041 | |
India — 17.7% | | |
AU Small Finance Bank Ltd.(1) | 3,335 | | 45,749 | |
Bata India Ltd. | 2,724 | | 58,061 | |
Berger Paints India Ltd. | 5,729 | | 63,390 | |
Central Depository Services India Ltd. | 14,893 | | 199,516 | |
Crompton Greaves Consumer Electricals Ltd. | 24,050 | | 130,608 | |
Indraprastha Gas Ltd. | 12,980 | | 91,943 | |
JK Cement Ltd.(1) | 4,279 | | 165,615 | |
Jubilant Foodworks Ltd.(1) | 3,257 | | 140,114 | |
L&T Technology Services Ltd. | 5,186 | | 193,461 | |
Larsen & Toubro Infotech Ltd. | 2,436 | | 132,043 | |
MakeMyTrip Ltd.(1) | 1,982 | | 54,505 | |
Prestige Estates Projects Ltd.(1) | 41,424 | | 155,511 | |
| | | | | | | | |
| Shares | Value |
Shriram Transport Finance Co. Ltd. | 3,655 | | $ | 73,238 | |
Torrent Pharmaceuticals Ltd. | 1,345 | | 50,365 | |
Varun Beverages Ltd. | 4,068 | | 56,545 | |
Zydus Wellness Ltd.(1) | 3,365 | | 97,580 | |
| | 1,708,244 | |
Indonesia — 2.9% | | |
Ace Hardware Indonesia Tbk PT | 439,400 | | 45,830 | |
Bank BTPN Syariah Tbk PT | 254,600 | | 47,203 | |
Jasa Marga Persero Tbk PT | 229,800 | | 62,361 | |
Semen Indonesia Persero Tbk PT | 71,400 | | 48,219 | |
Tower Bersama Infrastructure Tbk PT | 478,900 | | 80,118 | |
| | 283,731 | |
Malaysia — 2.8% | | |
Carlsberg Brewery Malaysia Bhd | 12,300 | | 65,459 | |
Inari Amertron Bhd | 175,000 | | 132,793 | |
VS Industry Bhd | 250,200 | | 73,714 | |
| | 271,966 | |
Mexico — 4.7% | | |
Cemex SAB de CV, ADR(1) | 30,431 | | 251,969 | |
Gentera SAB de CV(1) | 219,988 | | 124,253 | |
Grupo Aeroportuario del Centro Norte SAB de CV, ADR(1) | 1,560 | | 79,591 | |
| | 455,813 | |
Peru — 1.2% | | |
Intercorp Financial Services, Inc.(2) | 4,039 | | 113,657 | |
Philippines — 1.9% | | |
International Container Terminal Services, Inc. | 29,600 | | 90,549 | |
Wilcon Depot, Inc. | 243,500 | | 92,584 | |
| | 183,133 | |
Russia — 3.9% | | |
Detsky Mir PJSC | 64,543 | | 133,790 | |
TCS Group Holding plc, GDR | 3,236 | | 242,246 | |
| | 376,036 | |
Saudi Arabia — 1.2% | | |
Leejam Sports Co. JSC(1) | 5,580 | | 113,384 | |
South Africa — 1.7% | | |
Capitec Bank Holdings Ltd. | 630 | | 75,617 | |
Clicks Group Ltd. | 2,904 | | 54,624 | |
JSE Ltd. | 4,300 | | 35,850 | |
| | 166,091 | |
South Korea — 14.1% | | |
Chunbo Co. Ltd. | 272 | | 41,408 | |
CJ Logistics Corp.(1) | 688 | | 104,874 | |
Cosmax, Inc.(1) | 656 | | 74,039 | |
Doosan Bobcat, Inc.(1) | 3,691 | | 167,309 | |
Ecopro BM Co. Ltd. | 928 | | 149,329 | |
GS Retail Co. Ltd. | 1,882 | | 62,804 | |
Han Kuk Carbon Co. Ltd. | 4,582 | | 49,451 | |
Hite Jinro Co. Ltd. | 2,419 | | 82,026 | |
Iljin Materials Co. Ltd. | 2,577 | | 156,764 | |
Innocean Worldwide, Inc. | 1,634 | | 94,990 | |
Koh Young Technology, Inc. | 3,285 | | 77,719 | |
LG Innotek Co. Ltd. | 737 | | 133,188 | |
| | | | | | | | |
| Shares | Value |
Mando Corp.(1) | 1,504 | | $ | 87,341 | |
Studio Dragon Corp.(1) | 1,012 | | 87,013 | |
| | 1,368,255 | |
Taiwan — 15.7% | | |
Accton Technology Corp. | 10,000 | | 105,754 | |
Airtac International Group | 4,000 | | 144,812 | |
Asia Cement Corp. | 26,000 | | 47,283 | |
ASPEED Technology, Inc. | 1,000 | | 79,355 | |
Chailease Holding Co. Ltd. | 34,717 | | 262,210 | |
Gourmet Master Co. Ltd. | 9,000 | | 53,519 | |
ITEQ Corp. | 14,000 | | 62,554 | |
Merida Industry Co. Ltd. | 5,000 | | 57,838 | |
Nien Made Enterprise Co. Ltd. | 4,000 | | 58,770 | |
Powertech Technology, Inc. | 32,000 | | 122,267 | |
Realtek Semiconductor Corp. | 12,000 | | 214,748 | |
Sercomm Corp. | 22,000 | | 52,280 | |
Simplo Technology Co. Ltd. | 4,000 | | 52,576 | |
Taiwan Union Technology Corp. | 15,000 | | 52,280 | |
Vanguard International Semiconductor Corp. | 36,000 | | 151,651 | |
| | 1,517,897 | |
Thailand — 2.6% | | |
Minor International PCL(1) | 76,800 | | 78,643 | |
Muangthai Capital PCL | 43,400 | | 85,273 | |
Srisawad Corp. PCL | 35,560 | | 85,487 | |
| | 249,403 | |
Turkey — 0.6% | | |
Sok Marketler Ticaret AS(1) | 44,768 | | 59,387 | |
TOTAL COMMON STOCKS (Cost $6,740,004) | | 9,417,717 | |
EXCHANGE-TRADED FUNDS — 2.6% | | |
Fubon Taiwan Small-Mid Cap Alpha Momentum 50 ETF (Cost $251,189) | 165,000 | 251,712 | |
RIGHTS† | | |
South Korea† | | |
Cosmax, Inc.(1) (Cost $—) | 67 | 1,382 | |
TEMPORARY CASH INVESTMENTS — 0.3% | | |
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.75%, 5/15/25 - 8/15/47, valued at $11,100), in a joint trading account at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $10,863) | | 10,863 | |
State Street Institutional U.S. Government Money Market Fund, Premier Class | 21,903 | | 21,903 | |
TOTAL TEMPORARY CASH INVESTMENTS (Cost $32,766) | | 32,766 | |
TOTAL INVESTMENT SECURITIES — 100.3% (Cost $7,023,959) | | 9,703,577 | |
OTHER ASSETS AND LIABILITIES — (0.3)% | | (31,415) | |
TOTAL NET ASSETS — 100.0% | | $ | 9,672,162 | |
| | | | | |
MARKET SECTOR DIVERSIFICATION | |
(as a % of net assets) | |
Information Technology | 19.8% |
Consumer Discretionary | 18.1% |
Financials | 18.1% |
Industrials | 16.6% |
Materials | 10.5% |
Consumer Staples | 5.7% |
Communication Services | 2.7% |
Real Estate | 2.4% |
Energy | 1.6% |
Health Care | 1.0% |
Utilities | 0.9% |
Exchange-Traded Funds | 2.6% |
Temporary Cash Investments | 0.3% |
Other Assets and Liabilities | (0.3)% |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS |
ADR | - | American Depositary Receipt |
GDR | - | Global Depositary Receipt |
†Category is less than 0.05% of total net assets.
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $121,829. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers. At the period end, the aggregate value of the collateral held by the fund was $126,806, all of which is securities collateral.
See Notes to Financial Statements.
| | |
Statement of Assets and Liabilities |
| | | | | |
MAY 28, 2021 (UNAUDITED) | |
Assets | |
Investment securities, at value (cost of $7,023,959) — including $121,829 of securities on loan | $ | 9,703,577 | |
Foreign currency holdings, at value (cost of $95,196) | 95,282 | |
Receivable for investments sold | 226,919 | |
Receivable for capital shares sold | 4,960 | |
Dividends and interest receivable | 8,904 | |
Other assets | 592 | |
| 10,040,234 | |
| |
Liabilities | |
Payable for investments purchased | 315,429 | |
Accrued management fees | 10,215 | |
Distribution and service fees payable | 230 | |
Accrued foreign taxes | 42,198 | |
| 368,072 | |
| |
Net Assets | $ | 9,672,162 | |
| |
Net Assets Consist of: | |
Capital (par value and paid-in surplus) | $ | 6,417,165 | |
Distributable earnings | 3,254,997 | |
| $ | 9,672,162 | |
| | | | | | | | | | | |
| Net Assets | Shares Outstanding | Net Asset Value Per Share |
Investor Class, $0.01 Par Value | $3,435,488 | 213,413 | $16.10 |
I Class, $0.01 Par Value | $5,552,191 | 343,351 | $16.17 |
A Class, $0.01 Par Value | $243,165 | 15,193 | $16.01* |
C Class, $0.01 Par Value | $9,774 | 626 | $15.61 |
R Class, $0.01 Par Value | $413,794 | 26,035 | $15.89 |
R6 Class, $0.01 Par Value | $17,750 | 1,094 | $16.22 |
*Maximum offering price $16.99 (net asset value divided by 0.9425).
See Notes to Financial Statements.
| | | | | |
FOR THE SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) | |
Investment Income (Loss) | |
Income: | |
Dividends (net of foreign taxes withheld of $6,713) | $ | 52,943 | |
Securities lending, net | 170 | |
Interest | 16 | |
| 53,129 | |
| |
Expenses: | |
Management fees | 56,783 | |
Distribution and service fees: | |
A Class | 289 | |
C Class | 47 | |
R Class | 887 | |
Directors' fees and expenses | 97 | |
Other expenses | 160 | |
| 58,263 | |
| |
Net investment income (loss) | (5,134) | |
| |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on: | |
Investment transactions (net of foreign tax expenses paid (refunded) of $3,586) | 666,953 | |
Foreign currency translation transactions | (3,482) | |
| 663,471 | |
| |
Change in net unrealized appreciation (depreciation) on: | |
Investments (includes (increase) decrease in accrued foreign taxes of $(22,856)) | 705,565 | |
Translation of assets and liabilities in foreign currencies | (702) | |
| 704,863 | |
| |
Net realized and unrealized gain (loss) | 1,368,334 | |
| |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,363,200 | |
See Notes to Financial Statements.
| | |
Statement of Changes in Net Assets |
| | | | | | | | |
SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2020 |
Increase (Decrease) in Net Assets | May 28, 2021 | November 30, 2020 |
Operations | | |
Net investment income (loss) | $ | (5,134) | | $ | 31,274 | |
Net realized gain (loss) | 663,471 | | 625,468 | |
Change in net unrealized appreciation (depreciation) | 704,863 | | 511,074 | |
Net increase (decrease) in net assets resulting from operations | 1,363,200 | | 1,167,816 | |
| | |
Distributions to Shareholders | | |
From earnings: | | |
Investor Class | (125,868) | | (18,004) | |
I Class | (175,627) | | (14,053) | |
A Class | (8,853) | | (971) | |
C Class | (365) | | — | |
R Class | (11,882) | | — | |
R6 Class | (638) | | (1,053) | |
Decrease in net assets from distributions | (323,233) | | (34,081) | |
| | |
Capital Share Transactions | | |
Net increase (decrease) in net assets from capital share transactions (Note 5) | 1,218,807 | | (2,886,183) | |
| | |
Net increase (decrease) in net assets | 2,258,774 | | (1,752,448) | |
| | |
Net Assets | | |
Beginning of period | 7,413,388 | | 9,165,836 | |
End of period | $ | 9,672,162 | | $ | 7,413,388 | |
See Notes to Financial Statements.
| | |
Notes to Financial Statements |
MAY 28, 2021 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Emerging Markets Small Cap Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital growth.
The fund offers the Investor Class, I Class, A Class, C Class, R Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value (NAV) per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported NAV per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class.
The annual management fee for each class is as follows:
| | | | | | | | | | | | | | | | | |
Investor Class | I Class | A Class | C Class | R Class | R6 Class |
1.39% | 1.19% | 1.39% | 1.39% | 1.39% | 1.04% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 28, 2021 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. There were no interfund transactions during the period.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 28, 2021 were $3,701,450 and $2,826,800, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
| | | | | | | | | | | | | | |
| Six months ended May 28, 2021 | Year ended November 30, 2020 |
| Shares | Amount | Shares | Amount |
Investor Class/Shares Authorized | 40,000,000 | | | 40,000,000 | | |
Sold | 36,227 | | $ | 566,298 | | 120,640 | | $ | 1,518,746 | |
Issued in reinvestment of distributions | 8,815 | | 125,349 | | 1,277 | | 16,531 | |
Redeemed | (41,364) | | (624,223) | | (292,724) | | (3,710,859) | |
| 3,678 | | 67,424 | | (170,807) | | (2,175,582) | |
I Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | 74,725 | | 1,151,004 | | 146,395 | | 1,806,093 | |
Issued in reinvestment of distributions | 12,299 | | 175,627 | | 1,084 | | 14,053 | |
Redeemed | (19,147) | | (292,172) | | (61,929) | | (811,084) | |
| 67,877 | | 1,034,459 | | 85,550 | | 1,009,062 | |
A Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | — | | — | | 2,814 | | 32,167 | |
Issued in reinvestment of distributions | 626 | | 8,853 | | 75 | | 971 | |
Redeemed | — | | — | | (56,705) | | (766,988) | |
| 626 | | 8,853 | | (53,816) | | (733,850) | |
C Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | — | | — | | 747 | | 10,204 | |
Issued in reinvestment of distributions | 26 | | 365 | | — | | — | |
Redeemed | — | | — | | (55,780) | | (740,656) | |
| 26 | | 365 | | (55,033) | | (730,452) | |
R Class/Shares Authorized | 20,000,000 | | | 20,000,000 | | |
Sold | 11,330 | | 173,849 | | 12,202 | | 145,359 | |
Issued in reinvestment of distributions | 845 | | 11,882 | | — | | — | |
Redeemed | (5,143) | | (78,663) | | (20,231) | | (261,806) | |
| 7,032 | | 107,068 | | (8,029) | | (116,447) | |
R6 Class/Shares Authorized | 20,000,000 | | | 20,000,000 | | |
Issued in reinvestment of distributions | 44 | | 638 | | 81 | | 1,053 | |
Redeemed | — | | — | | (10,463) | | (139,967) | |
| 44 | | 638 | | (10,382) | | (138,914) | |
Net increase (decrease) | 79,283 | | $ | 1,218,807 | | (212,517) | | $ | (2,886,183) | |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
| | | | | | | | | | | |
| Level 1 | Level 2 | Level 3 |
Assets | | | |
Investment Securities | | | |
Common Stocks | | | |
Argentina | $ | 110,242 | | — | | — | |
Brazil | 109,784 | | $ | 848,677 | | — | |
China | 58,657 | | 1,168,906 | | — | |
India | 54,505 | | 1,653,739 | | — | |
Mexico | 331,560 | | 124,253 | | — | |
Peru | 113,657 | | — | | — | |
Other Countries | — | | 4,843,737 | | — | |
Exchange-Traded Funds | 251,712 | | — | | — | |
Rights | — | | 1,382 | | — | |
Temporary Cash Investments | 21,903 | | 10,863 | | — | |
| $ | 1,052,020 | | $ | 8,651,557 | | — | |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
| | | | | |
Federal tax cost of investments | $ | 7,041,426 | |
Gross tax appreciation of investments | $ | 2,869,896 | |
Gross tax depreciation of investments | (207,745) | |
Net tax appreciation (depreciation) of investments | $ | 2,662,151 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |
Per-Share Data | | Ratios and Supplemental Data | | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
Investor Class | | | | | | | | | | | | |
2021(3) | $14.23 | (0.02) | 2.50 | 2.48 | — | (0.61) | (0.61) | $16.10 | 17.98% | 1.40%(4) | (0.20)%(4) | 32% | $3,435 | |
2020 | $12.52 | 0.04 | 1.72 | 1.76 | (0.05) | — | (0.05) | $14.23 | 14.07% | 1.54% | 0.37% | 60% | $2,984 | |
2019 | $11.68 | 0.05 | 1.20 | 1.25 | — | (0.41) | (0.41) | $12.52 | 11.36% | 1.61% | 0.43% | 67% | $4,764 | |
2018 | $13.66 | 0.04 | (1.86) | (1.82) | (0.14) | (0.02) | (0.16) | $11.68 | (13.59)% | 1.60% | 0.31% | 75% | $5,924 | |
2017 | $10.45 | (0.03) | 3.33 | 3.30 | (0.09) | — | (0.09) | $13.66 | 31.85% | 1.61% | (0.16)% | 49% | $6,884 | |
2016(5) | $10.00 | 0.04 | 0.41 | 0.45 | — | — | — | $10.45 | 4.50% | 1.60%(4) | 0.59%(4) | 51% | $2,373 | |
I Class | | | | | | | | | | | | | |
2021(3) | $14.27 | —(6) | 2.51 | 2.51 | — | (0.61) | (0.61) | $16.17 | 18.14% | 1.20%(4) | 0.00%(4)(7) | 32% | $5,552 | |
2020 | $12.56 | 0.07 | 1.71 | 1.78 | (0.07) | — | (0.07) | $14.27 | 14.25% | 1.34% | 0.57% | 60% | $3,932 | |
2019 | $11.69 | 0.07 | 1.21 | 1.28 | — | (0.41) | (0.41) | $12.56 | 11.52% | 1.41% | 0.63% | 67% | $2,386 | |
2018 | $13.68 | 0.06 | (1.86) | (1.80) | (0.17) | (0.02) | (0.19) | $11.69 | (13.39)% | 1.40% | 0.51% | 75% | $1,304 | |
2017 | $10.46 | 0.01 | 3.32 | 3.33 | (0.11) | — | (0.11) | $13.68 | 32.18% | 1.41% | 0.04% | 49% | $829 | |
2016(5) | $10.00 | 0.05 | 0.41 | 0.46 | — | — | — | $10.46 | 4.60% | 1.40%(4) | 0.79%(4) | 51% | $628 | |
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For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |
Per-Share Data | | Ratios and Supplemental Data | | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
A Class | | | | | | | | | | | | | |
2021(3) | $14.17 | (0.03) | 2.48 | 2.45 | — | (0.61) | (0.61) | $16.01 | 17.76% | 1.65%(4) | (0.45)%(4) | 32% | $243 | |
2020 | $12.47 | 0.02 | 1.69 | 1.71 | (0.01) | — | (0.01) | $14.17 | 13.76% | 1.79% | 0.12% | 60% | $206 | |
2019 | $11.66 | 0.02 | 1.20 | 1.22 | — | (0.41) | (0.41) | $12.47 | 11.11% | 1.86% | 0.18% | 67% | $853 | |
2018 | $13.64 | 0.01 | (1.86) | (1.85) | (0.11) | (0.02) | (0.13) | $11.66 | (13.82)% | 1.85% | 0.06% | 75% | $1,209 | |
2017 | $10.43 | (0.04) | 3.31 | 3.27 | (0.06) | — | (0.06) | $13.64 | 31.57% | 1.86% | (0.41)% | 49% | $1,956 | |
2016(5) | $10.00 | 0.02 | 0.41 | 0.43 | — | — | — | $10.43 | 4.30% | 1.85%(4) | 0.34%(4) | 51% | $1,043 | |
C Class | | | | | | | | | | | | | |
2021(3) | $13.88 | (0.09) | 2.43 | 2.34 | — | (0.61) | (0.61) | $15.61 | 17.40% | 2.40%(4) | (1.20)%(4) | 32% | $10 | |
2020 | $12.29 | (0.07) | 1.66 | 1.59 | — | — | — | $13.88 | 12.94% | 2.54% | (0.63)% | 60% | $8 | |
2019 | $11.58 | (0.07) | 1.19 | 1.12 | — | (0.41) | (0.41) | $12.29 | 10.20% | 2.61% | (0.57)% | 67% | $684 | |
2018 | $13.55 | (0.10) | (1.85) | (1.95) | —(6) | (0.02) | (0.02) | $11.58 | (14.41)% | 2.60% | (0.69)% | 75% | $1,160 | |
2017 | $10.38 | (0.13) | 3.30 | 3.17 | — | — | — | $13.55 | 30.54% | 2.61% | (1.16)% | 49% | $1,355 | |
2016(5) | $10.00 | (0.03) | 0.41 | 0.38 | — | — | — | $10.38 | 3.80% | 2.60%(4) | (0.41)%(4) | 51% | $1,038 | |
R Class | | | | | | | | | | | | | |
2021(3) | $14.09 | (0.05) | 2.46 | 2.41 | — | (0.61) | (0.61) | $15.89 | 17.65% | 1.90%(4) | (0.70)%(4) | 32% | $414 | |
2020 | $12.42 | (0.01) | 1.68 | 1.67 | — | — | — | $14.09 | 13.54% | 2.04% | (0.13)% | 60% | $268 | |
2019 | $11.64 | (0.01) | 1.20 | 1.19 | — | (0.41) | (0.41) | $12.42 | 10.68% | 2.11% | (0.07)% | 67% | $336 | |
2018 | $13.62 | (0.03) | (1.86) | (1.89) | (0.07) | (0.02) | (0.09) | $11.64 | (13.98)% | 2.10% | (0.19)% | 75% | $375 | |
2017 | $10.41 | (0.07) | 3.32 | 3.25 | (0.04) | — | (0.04) | $13.62 | 31.30% | 2.11% | (0.66)% | 49% | $331 | |
2016(5) | $10.00 | 0.01 | 0.40 | 0.41 | — | — | — | $10.41 | 4.10% | 2.10%(4) | 0.09%(4) | 51% | $212 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |
Per-Share Data | | Ratios and Supplemental Data | | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
R6 Class | | | | | | | | | | | | | |
2021(3) | $14.31 | 0.01 | 2.51 | 2.52 | — | (0.61) | (0.61) | $16.22 | 18.16% | 1.05%(4) | 0.15%(4) | 32% | $18 | |
2020 | $12.59 | 0.10 | 1.71 | 1.81 | (0.09) | — | (0.09) | $14.31 | 14.47% | 1.19% | 0.72% | 60% | $15 | |
2019 | $11.70 | 0.09 | 1.21 | 1.30 | — | (0.41) | (0.41) | $12.59 | 11.68% | 1.26% | 0.78% | 67% | $144 | |
2018 | $13.69 | 0.08 | (1.86) | (1.78) | (0.19) | (0.02) | (0.21) | $11.70 | (13.25)% | 1.25% | 0.66% | 75% | $240 | |
2017 | $10.47 | 0.03 | 3.31 | 3.34 | (0.12) | — | (0.12) | $13.69 | 32.35% | 1.26% | 0.19% | 49% | $277 | |
2016(5) | $10.00 | 0.06 | 0.41 | 0.47 | — | — | — | $10.47 | 4.70% | 1.25%(4) | 0.94%(4) | 51% | $209 | |
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Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)Six months ended May 28, 2021 (unaudited).
(4)Annualized.
(5)April 7, 2016 (fund inception) through November 30, 2016.
(6)Per-share amount was less than $0.005.
(7)Ratio was less than 0.005%.
See Notes to Financial Statements.
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Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2019 through December 31, 2020. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century Investments’ website at americancentury.com/proxy and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
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American Century World Mutual Funds, Inc. | |
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Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |
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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. | |
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©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92636 2107 | |
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| |
| Semiannual Report |
| |
| May 28, 2021 |
| |
| Focused Global Growth Fund |
| Investor Class (TWGGX) |
| I Class (AGGIX) |
| Y Class (AGYGX) |
| A Class (AGGRX) |
| C Class (AGLCX) |
| R Class (AGORX) |
| R5 Class (AGFGX) |
| R6 Class (AGGDX) |
| | | | | |
President’s Letter | |
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Fund Characteristics | |
Shareholder Fee Example | |
Schedule of Investments | |
Statement of Assets and Liabilities | |
Statement of Operations | |
Statement of Changes in Net Assets | |
Notes to Financial Statements | |
Financial Highlights | |
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Liquidity Risk Management Program | |
Additional Information | |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 28, 2021. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Government Support, Vaccines Aided Market Outlook
Broad market sentiment was upbeat to start the period. Investors generally looked beyond periodic upswings in virus cases, COVID-19 lockdowns and restrictions in some regions, and uncertainty surrounding the U.S. political climate. Ongoing support from global central banks and governments helped maintain investor confidence in the financial markets and strengthen the economic backdrop.
In the U.S., improving manufacturing, employment and housing data, along with positive vaccine developments and a late-2020 federal coronavirus aid package helped sustain the upbeat tone into early 2021. Election results gave Democrats control of the White House and Congress, setting the stage for another federal aid bill in March and proposals for significant government spending down the road.
Outside the U.S., economic data improved, albeit at a slower pace. In addition, expanding worldwide vaccine distributions and ongoing reopenings helped bolster economic and earnings outlooks. This improving backdrop combined with massive monetary and fiscal support helped fuel robust gains for stocks and other riskier assets for the six-month period. Economic gains and monetary support, along with supply chain disruptions, helped push inflation higher, particularly in the U.S., where prices increased at the fastest rate in nearly 13 years. However, policymakers insisted the pricing pressures were temporary and maintained their generally upbeat outlooks.
Reopenings Will Shape Market Dynamics
The return to pre-pandemic life is progressing, and as economies throughout the world reopen and rebuild, investors likely will face renewed opportunities and challenges. Global growth data, the virus’s trajectory, supply chain normalization, and the effects of fiscal and monetary policy likely will be among the factors swaying market dynamics.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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MAY 28, 2021 | |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 100.1% |
Temporary Cash Investments | —* |
Other Assets and Liabilities | (0.1)% |
*Category is less than 0.05% of total net assets. | |
| |
Top Five Countries | % of net assets |
United States | 66.7% |
Hong Kong | 5.4% |
China | 4.1% |
Italy | 3.7% |
India | 2.8% |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2020 to May 28, 2021.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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| Beginning Account Value 12/1/20 | Ending Account Value 5/28/21 | Expenses Paid During Period(1) 12/1/20 - 5/28/21 | Annualized Expense Ratio(1) |
Actual | | | | |
Investor Class | $1,000 | $1,150.20 | $5.64 | 1.07% |
I Class | $1,000 | $1,151.90 | $4.59 | 0.87% |
Y Class | $1,000 | $1,152.80 | $3.80 | 0.72% |
A Class | $1,000 | $1,149.50 | $6.96 | 1.32% |
C Class | $1,000 | $1,144.20 | $10.88 | 2.07% |
R Class | $1,000 | $1,147.80 | $8.27 | 1.57% |
R5 Class | $1,000 | $1,151.90 | $4.59 | 0.87% |
R6 Class | $1,000 | $1,152.30 | $3.80 | 0.72% |
Hypothetical | | | | |
Investor Class | $1,000 | $1,019.27 | $5.30 | 1.07% |
I Class | $1,000 | $1,020.25 | $4.31 | 0.87% |
Y Class | $1,000 | $1,020.99 | $3.57 | 0.72% |
A Class | $1,000 | $1,018.05 | $6.53 | 1.32% |
C Class | $1,000 | $1,014.37 | $10.22 | 2.07% |
R Class | $1,000 | $1,016.82 | $7.76 | 1.57% |
R5 Class | $1,000 | $1,020.25 | $4.31 | 0.87% |
R6 Class | $1,000 | $1,020.99 | $3.57 | 0.72% |
(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 179, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
MAY 28, 2021 (UNAUDITED)
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| Shares | Value |
COMMON STOCKS — 100.1% | | |
Brazil — 2.5% | | |
B3 SA - Brasil Bolsa Balcao | 5,732,400 | | $ | 19,149,430 | |
China — 4.1% | | |
Alibaba Group Holding Ltd., ADR(1) | 69,200 | | 14,806,032 | |
Ping An Insurance Group Co. of China Ltd., H Shares | 1,554,500 | | 16,980,069 | |
| | 31,786,101 | |
France — 2.8% | | |
Pernod Ricard SA | 98,780 | | 21,808,103 | |
Hong Kong — 5.4% | | |
AIA Group Ltd. | 1,671,200 | | 22,304,350 | |
Hong Kong Exchanges & Clearing Ltd. | 324,383 | | 19,963,367 | |
| | 42,267,717 | |
Hungary — 1.6% | | |
OTP Bank Nyrt(1) | 224,353 | | 12,315,096 | |
India — 2.8% | | |
HDFC Bank Ltd.(1) | 1,069,160 | | 22,179,153 | |
Ireland — 2.4% | | |
CRH plc | 364,560 | | 19,072,654 | |
Italy — 3.7% | | |
Stellantis NV | 1,472,564 | | 28,809,158 | |
Japan — 2.6% | | |
Shiseido Co. Ltd. | 279,200 | | 20,175,726 | |
Switzerland — 2.7% | | |
Zurich Insurance Group AG | 50,730 | | 21,337,077 | |
United Kingdom — 2.8% | | |
AstraZeneca plc | 191,020 | | 21,771,235 | |
United States — 66.7% | | |
Adobe, Inc.(1) | 36,957 | | 18,647,763 | |
Alphabet, Inc., Class A(1) | 9,530 | | 22,460,781 | |
Amazon.com, Inc.(1) | 11,388 | | 36,704,321 | |
American Express Co. | 180,040 | | 28,829,805 | |
AMETEK, Inc. | 148,540 | | 20,067,754 | |
Aptiv plc(1) | 142,910 | | 21,496,522 | |
Avantor, Inc.(1) | 774,260 | | 24,892,459 | |
Booking Holdings, Inc.(1) | 10,000 | | 23,615,500 | |
Charles Schwab Corp. (The) | 402,318 | | 29,711,184 | |
Cheniere Energy, Inc.(1) | 337,650 | | 28,666,485 | |
Danaher Corp. | 74,955 | | 19,198,974 | |
Equinix, Inc. | 24,886 | | 18,334,014 | |
Fidelity National Information Services, Inc. | 116,507 | | 17,357,213 | |
HEICO Corp. | 154,780 | | 21,740,399 | |
L3Harris Technologies, Inc. | 98,620 | | 21,505,077 | |
Lowe's Cos., Inc. | 108,850 | | 21,207,246 | |
Mastercard, Inc., Class A | 53,630 | | 19,337,905 | |
NXP Semiconductors NV | 116,790 | | 24,691,742 | |
Pioneer Natural Resources Co. | 117,758 | | 17,921,590 | |
ServiceNow, Inc.(1) | 36,840 | | 17,457,739 | |
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| Shares | Value |
Teleflex, Inc. | 52,438 | | $ | 21,090,039 | |
Texas Instruments, Inc. | 129,100 | | 24,505,762 | |
Visa, Inc., Class A | 95,512 | | 21,709,878 | |
| | 521,150,152 | |
TOTAL COMMON STOCKS (Cost $503,387,389) | | 781,821,602 | |
TEMPORARY CASH INVESTMENTS† | | |
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.75%, 5/15/25 - 8/15/47, valued at $70,964), in a joint trading account at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $69,450) | | 69,450 | |
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.875%, 11/15/46, valued at $117,403), at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $115,000) | | 115,000 | |
State Street Institutional U.S. Government Money Market Fund, Premier Class | 140,033 | | 140,033 | |
TOTAL TEMPORARY CASH INVESTMENTS (Cost $324,483) | | 324,483 | |
TOTAL INVESTMENT SECURITIES — 100.1% (Cost $503,711,872) | | 782,146,085 | |
OTHER ASSETS AND LIABILITIES — (0.1)% | | (755,934) | |
TOTAL NET ASSETS — 100.0% | | $ | 781,390,151 | |
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MARKET SECTOR DIVERSIFICATION |
(as a % of net assets) | |
Financials | 24.7% |
Consumer Discretionary | 18.7% |
Information Technology | 18.4% |
Health Care | 11.2% |
Industrials | 8.1% |
Energy | 6.0% |
Consumer Staples | 5.4% |
Communication Services | 2.9% |
Materials | 2.4% |
Real Estate | 2.3% |
Temporary Cash Investments | —* |
Other Assets and Liabilities | (0.1)% |
*Category is less than 0.05% of total net assets.
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS |
ADR | - | American Depositary Receipt |
†Category is less than 0.05% of total net assets.
(1)Non-income producing.
See Notes to Financial Statements.
| | |
Statement of Assets and Liabilities |
| | | | | |
MAY 28, 2021 (UNAUDITED) |
Assets | |
Investment securities, at value (cost of $503,711,872) | $ | 782,146,085 | |
Receivable for capital shares sold | 2,465,331 | |
Dividends and interest receivable | 955,724 | |
Other assets | 1,208 | |
| 785,568,348 | |
| |
Liabilities | |
Payable for capital shares redeemed | 2,955,714 | |
Accrued management fees | 644,339 | |
Distribution and service fees payable | 16,299 | |
Accrued foreign taxes | 561,845 | |
| 4,178,197 | |
| |
Net Assets | $ | 781,390,151 | |
| |
Net Assets Consist of: | |
Capital (par value and paid-in surplus) | $ | 461,521,989 | |
Distributable earnings | 319,868,162 | |
| $ | 781,390,151 | |
| | | | | | | | | | | |
| Net Assets | Shares Outstanding | Net Asset Value Per Share |
Investor Class, $0.01 Par Value | $516,185,908 | 34,154,668 | $15.11 |
I Class, $0.01 Par Value | $107,587,740 | 6,914,957 | $15.56 |
Y Class, $0.01 Par Value | $158,251 | 10,076 | $15.71 |
A Class, $0.01 Par Value | $35,154,306 | 2,442,995 | $14.39* |
C Class, $0.01 Par Value | $5,989,872 | 533,757 | $11.22 |
R Class, $0.01 Par Value | $9,275,072 | 666,121 | $13.92 |
R5 Class, $0.01 Par Value | $10,609 | 682 | $15.56 |
R6 Class, $0.01 Par Value | $107,028,393 | 6,825,494 | $15.68 |
*Maximum offering price $15.27 (net asset value divided by 0.9425).
See Notes to Financial Statements.
| | | | | |
FOR THE SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) |
Investment Income (Loss) | |
Income: | |
Dividends (net of foreign taxes withheld of $266,685) | $ | 6,252,683 | |
Interest | 335 | |
| 6,253,018 | |
| |
Expenses: | |
Management fees | 3,647,443 | |
Distribution and service fees: | |
A Class | 40,882 | |
C Class | 28,933 | |
R Class | 22,702 | |
Directors' fees and expenses | 9,449 | |
Other expenses | 10,247 | |
| 3,759,656 | |
| |
Net investment income (loss) | 2,493,362 | |
| |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on: | |
Investment transactions | 44,138,829 | |
Foreign currency translation transactions | (8,860) | |
| 44,129,969 | |
| |
Change in net unrealized appreciation (depreciation) on: | |
Investments (includes (increase) decrease in accrued foreign taxes of $38,669) | 57,084,935 | |
Translation of assets and liabilities in foreign currencies | 9,516 | |
| 57,094,451 | |
| |
Net realized and unrealized gain (loss) | 101,224,420 | |
| |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 103,717,782 | |
See Notes to Financial Statements.
| | |
Statement of Changes in Net Assets |
| | | | | | | | |
SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2020 |
Increase (Decrease) in Net Assets | May 28, 2021 | November 30, 2020 |
Operations | | |
Net investment income (loss) | $ | 2,493,362 | | $ | (674,587) | |
Net realized gain (loss) | 44,129,969 | | 81,701,387 | |
Change in net unrealized appreciation (depreciation) | 57,094,451 | | 73,995,456 | |
Net increase (decrease) in net assets resulting from operations | 103,717,782 | | 155,022,256 | |
| | |
Distributions to Shareholders | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
From earnings: | | |
Investor Class | (45,815,568) | | (70,603,884) | |
I Class | (9,140,352) | | (4,139,998) | |
Y Class | (16,008) | | (46,321) | |
A Class | (3,095,249) | | (4,387,898) | |
C Class | (729,583) | | (962,993) | |
R Class | (964,647) | | (1,212,750) | |
R5 Class | (890) | | (1,131) | |
R6 Class | (8,866,888) | | (6,775,967) | |
Decrease in net assets from distributions | (68,629,185) | | (88,130,942) | |
| | |
Capital Share Transactions | | |
Net increase (decrease) in net assets from capital share transactions (Note 5) | 53,253,080 | | 42,008,322 | |
| | |
Net increase (decrease) in net assets | 88,341,677 | | 108,899,636 | |
| | |
Net Assets | | |
Beginning of period | 693,048,474 | | 584,148,838 | |
End of period | $ | 781,390,151 | | $ | 693,048,474 | |
See Notes to Financial Statements.
| | |
Notes to Financial Statements |
MAY 28, 2021 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Focused Global Growth Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek capital growth.
The fund offers the Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value (NAV) per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported NAV per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account the fund’s assets as well as certain assets, if any, of other clients of the investment advisor outside the American Century Investments family of funds (such as subadvised funds and separate accounts) that use very similar investment teams and strategies (strategy assets).
The management fee schedule range and the effective annual management fee for each class for the period ended May 28, 2021 are as follows:
| | | | | | | | |
| Management Fee Schedule Range | Effective Annual Management Fee |
Investor Class | 1.050% to 1.300% | 1.06% |
I Class | 0.850% to 1.100% | 0.86% |
Y Class | 0.700% to 0.950% | 0.71% |
A Class | 1.050% to 1.300% | 1.06% |
C Class | 1.050% to 1.300% | 1.06% |
R Class | 1.050% to 1.300% | 1.06% |
R5 Class | 0.850% to 1.100% | 0.86% |
R6 Class | 0.700% to 0.950% | 0.71% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 28, 2021 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. There were no interfund transactions during the period.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 28, 2021 were $116,499,138 and $125,496,086, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
| | | | | | | | | | | | | | |
| Six months ended May 28, 2021 | Year ended November 30, 2020 |
| Shares | Amount | Shares | Amount |
Investor Class/Shares Authorized | 450,000,000 | | | 450,000,000 | | |
Sold | 1,234,681 | | $ | 17,612,065 | | 4,048,205 | | $ | 48,125,859 | |
Issued in reinvestment of distributions | 3,325,188 | | 44,324,768 | | 5,805,629 | | 68,462,968 | |
Redeemed | (2,194,886) | | (31,373,403) | | (11,332,337) | | (135,918,928) | |
| 2,364,983 | | 30,563,430 | | (1,478,503) | | (19,330,101) | |
I Class/Shares Authorized | 40,000,000 | | | 40,000,000 | | |
Sold | 613,585 | | 8,943,770 | | 6,520,526 | | 78,283,780 | |
Issued in reinvestment of distributions | 666,184 | | 9,133,388 | | 342,162 | | 4,129,640 | |
Redeemed | (719,793) | | (10,489,985) | | (2,548,314) | | (32,311,440) | |
| 559,976 | | 7,587,173 | | 4,314,374 | | 50,101,980 | |
Y Class/Shares Authorized | 20,000,000 | | | 20,000,000 | | |
Issued in reinvestment of distributions | 1,158 | | 16,008 | | 3,811 | | 46,321 | |
Redeemed | (2,171) | | (31,408) | | (14,182) | | (179,832) | |
| (1,013) | | (15,400) | | (10,371) | | (133,511) | |
A Class/Shares Authorized | 40,000,000 | | | 40,000,000 | | |
Sold | 253,745 | | 3,429,471 | | 510,346 | | 6,048,111 | |
Issued in reinvestment of distributions | 238,150 | | 3,026,891 | | 375,963 | | 4,257,021 | |
Redeemed | (238,831) | | (3,293,594) | | (755,382) | | (8,720,936) | |
| 253,064 | | 3,162,768 | | 130,927 | | 1,584,196 | |
C Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | 145,960 | | 1,577,184 | | 109,079 | | 1,056,740 | |
Issued in reinvestment of distributions | 72,540 | | 721,044 | | 95,662 | | 879,003 | |
Redeemed | (157,035) | | (1,651,565) | | (183,221) | | (1,758,641) | |
| 61,465 | | 646,663 | | 21,520 | | 177,102 | |
R Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | 59,089 | | 782,126 | | 197,690 | | 2,324,558 | |
Issued in reinvestment of distributions | 78,345 | | 964,421 | | 109,728 | | 1,210,541 | |
Redeemed | (130,251) | | (1,693,983) | | (230,339) | | (2,620,957) | |
| 7,183 | | 52,564 | | 77,079 | | 914,142 | |
R5 Class/Shares Authorized | 20,000,000 | | | 20,000,000 | | |
Issued in reinvestment of distributions | 65 | | 890 | | 94 | | 1,131 | |
R6 Class/Shares Authorized | 65,000,000 | | | 65,000,000 | | |
Sold | 1,318,170 | | 19,476,368 | | 3,891,598 | | 44,325,196 | |
Issued in reinvestment of distributions | 583,293 | | 8,055,272 | | 463,745 | | 5,619,736 | |
Redeemed | (1,094,098) | | (16,276,648) | | (3,069,071) | | (41,251,549) | |
| 807,365 | | 11,254,992 | | 1,286,272 | | 8,693,383 | |
Net increase (decrease) | 4,053,088 | | $ | 53,253,080 | | 4,341,392 | | $ | 42,008,322 | |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
| | | | | | | | | | | |
| Level 1 | Level 2 | Level 3 |
Assets | | | |
Investment Securities | | | |
Common Stocks | | | |
Brazil | — | | $ | 19,149,430 | | — | |
China | $ | 14,806,032 | | 16,980,069 | | — | |
France | — | | 21,808,103 | | — | |
Hong Kong | — | | 42,267,717 | | — | |
Hungary | — | | 12,315,096 | | — | |
India | — | | 22,179,153 | | — | |
Ireland | — | | 19,072,654 | | — | |
Italy | — | | 28,809,158 | | — | |
Japan | — | | 20,175,726 | | — | |
Switzerland | — | | 21,337,077 | | — | |
United Kingdom | — | | 21,771,235 | | — | |
Other Countries | 521,150,152 | | — | | — | |
Temporary Cash Investments | 140,033 | | 184,450 | | — | |
| $ | 536,096,217 | | $ | 246,049,868 | | — | |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
| | | | | |
Federal tax cost of investments | $ | 508,154,586 | |
Gross tax appreciation of investments | $ | 276,329,256 | |
Gross tax depreciation of investments | (2,337,757) | |
Net tax appreciation (depreciation) of investments | $ | 273,991,499 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | | | | | | | |
Per-Share Data | | | | | | Ratios and Supplemental Data | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
Investor Class | | | | | | | | | | | |
2021(3) | $14.56 | 0.04 | 1.95 | 1.99 | — | (1.44) | (1.44) | $15.11 | 15.02% | 1.07%(4) | 0.62%(4) | 16% | $516,186 | |
2020 | $13.54 | (0.02) | 3.16 | 3.14 | —(5) | (2.12) | (2.12) | $14.56 | 27.02% | 1.07% | (0.14)% | 73% | $462,781 | |
2019 | $12.32 | 0.01 | 2.33 | 2.34 | (0.01) | (1.11) | (1.12) | $13.54 | 21.82% | 1.07% | 0.07% | 68% | $450,413 | |
2018 | $13.67 | 0.04 | 0.11 | 0.15 | (0.03) | (1.47) | (1.50) | $12.32 | 1.27% | 1.07% | 0.29% | 42% | $408,562 | |
2017 | $10.84 | 0.02 | 2.98 | 3.00 | (0.04) | (0.13) | (0.17) | $13.67 | 27.99% | 1.08% | 0.14% | 54% | $437,822 | |
2016 | $12.01 | 0.03 | (0.42) | (0.39) | (0.01) | (0.77) | (0.78) | $10.84 | (3.24)% | 1.08% | 0.27% | 57% | $387,155 | |
I Class | | | | | | | | | | | |
2021(3) | $14.93 | 0.06 | 2.01 | 2.07 | — | (1.44) | (1.44) | $15.56 | 15.19% | 0.87%(4) | 0.82%(4) | 16% | $107,588 | |
2020 | $13.84 | —(5) | 3.24 | 3.24 | (0.03) | (2.12) | (2.15) | $14.93 | 27.21% | 0.87% | 0.06% | 73% | $94,888 | |
2019 | $12.57 | 0.03 | 2.39 | 2.42 | (0.04) | (1.11) | (1.15) | $13.84 | 22.04% | 0.87% | 0.27% | 68% | $28,238 | |
2018 | $13.91 | 0.06 | 0.12 | 0.18 | (0.05) | (1.47) | (1.52) | $12.57 | 1.52% | 0.87% | 0.49% | 42% | $16,210 | |
2017 | $11.01 | 0.05 | 3.02 | 3.07 | (0.04) | (0.13) | (0.17) | $13.91 | 28.25% | 0.88% | 0.34% | 54% | $32,498 | |
2016 | $12.19 | 0.05 | (0.42) | (0.37) | (0.04) | (0.77) | (0.81) | $11.01 | (3.07)% | 0.88% | 0.47% | 57% | $37,028 | |
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For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | | | | | | | |
Per-Share Data | | | | | | Ratios and Supplemental Data | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
Y Class | | | | | | | | | | | | | |
2021(3) | $15.05 | 0.07 | 2.03 | 2.10 | — | (1.44) | (1.44) | $15.71 | 15.28% | 0.72%(4) | 0.97%(4) | 16% | $158 | |
2020 | $13.93 | 0.03 | 3.26 | 3.29 | (0.05) | (2.12) | (2.17) | $15.05 | 27.48% | 0.72% | 0.21% | 73% | $167 | |
2019 | $12.65 | 0.01 | 2.43 | 2.44 | (0.05) | (1.11) | (1.16) | $13.93 | 22.18% | 0.72% | 0.42% | 68% | $299 | |
2018 | $13.98 | 0.08 | 0.12 | 0.20 | (0.06) | (1.47) | (1.53) | $12.65 | 1.62% | 0.72% | 0.64% | 42% | $7 | |
2017(6) | $11.95 | 0.04 | 1.99 | 2.03 | — | — | — | $13.98 | 16.99% | 0.73%(4) | 0.49%(4) | 54%(7) | $6 | |
A Class | | | | | | | | | | | | | |
2021(3) | $13.94 | 0.03 | 1.86 | 1.89 | — | (1.44) | (1.44) | $14.39 | 14.95% | 1.32%(4) | 0.37%(4) | 16% | $35,154 | |
2020 | $13.08 | (0.05) | 3.03 | 2.98 | — | (2.12) | (2.12) | $13.94 | 26.66% | 1.32% | (0.39)% | 73% | $30,537 | |
2019 | $11.96 | (0.02) | 2.25 | 2.23 | — | (1.11) | (1.11) | $13.08 | 21.48% | 1.32% | (0.18)% | 68% | $26,932 | |
2018 | $13.31 | —(5) | 0.12 | 0.12 | — | (1.47) | (1.47) | $11.96 | 1.08% | 1.32% | 0.04% | 42% | $26,256 | |
2017 | $10.58 | (0.01) | 2.90 | 2.89 | (0.03) | (0.13) | (0.16) | $13.31 | 27.65% | 1.33% | (0.11)% | 54% | $30,622 | |
2016 | $11.76 | —(5) | (0.41) | (0.41) | — | (0.77) | (0.77) | $10.58 | (3.52)% | 1.33% | 0.02% | 57% | $36,382 | |
C Class | | | | | | | | | | | | | |
2021(3) | $11.23 | (0.02) | 1.45 | 1.43 | — | (1.44) | (1.44) | $11.22 | 14.42% | 2.07%(4) | (0.38)%(4) | 16% | $5,990 | |
2020 | $11.00 | (0.11) | 2.46 | 2.35 | — | (2.12) | (2.12) | $11.23 | 25.84% | 2.07% | (1.14)% | 73% | $5,302 | |
2019 | $10.32 | (0.09) | 1.88 | 1.79 | — | (1.11) | (1.11) | $11.00 | 20.53% | 2.07% | (0.93)% | 68% | $4,960 | |
2018 | $11.77 | (0.08) | 0.10 | 0.02 | — | (1.47) | (1.47) | $10.32 | 0.27% | 2.07% | (0.71)% | 42% | $4,662 | |
2017 | $9.42 | (0.09) | 2.58 | 2.49 | (0.01) | (0.13) | (0.14) | $11.77 | 26.77% | 2.08% | (0.86)% | 54% | $5,977 | |
2016 | $10.63 | (0.07) | (0.37) | (0.44) | — | (0.77) | (0.77) | $9.42 | (4.23)% | 2.08% | (0.73)% | 57% | $6,872 | |
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For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | | | | | | | |
Per-Share Data | | | | | | Ratios and Supplemental Data | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
R Class | | | | | | | | | | | | | |
2021(3) | $13.55 | 0.01 | 1.80 | 1.81 | — | (1.44) | (1.44) | $13.92 | 14.78% | 1.57%(4) | 0.12%(4) | 16% | $9,275 | |
2020 | $12.80 | (0.07) | 2.94 | 2.87 | — | (2.12) | (2.12) | $13.55 | 26.34% | 1.57% | (0.64)% | 73% | $8,931 | |
2019 | $11.75 | (0.05) | 2.21 | 2.16 | — | (1.11) | (1.11) | $12.80 | 21.24% | 1.57% | (0.43)% | 68% | $7,448 | |
2018 | $13.14 | (0.03) | 0.11 | 0.08 | — | (1.47) | (1.47) | $11.75 | 0.75% | 1.57% | (0.21)% | 42% | $6,995 | |
2017 | $10.47 | (0.04) | 2.86 | 2.82 | (0.02) | (0.13) | (0.15) | $13.14 | 27.29% | 1.58% | (0.36)% | 54% | $7,925 | |
2016 | $11.67 | (0.03) | (0.40) | (0.43) | — | (0.77) | (0.77) | $10.47 | (3.73)% | 1.58% | (0.23)% | 57% | $7,007 | |
R5 Class | | | | | | | | | | | | | |
2021(3) | $14.93 | 0.06 | 2.01 | 2.07 | — | (1.44) | (1.44) | $15.56 | 15.19% | 0.87%(4) | 0.82%(4) | 16% | $11 | |
2020 | $13.84 | 0.01 | 3.23 | 3.24 | (0.03) | (2.12) | (2.15) | $14.93 | 27.21% | 0.87% | 0.06% | 73% | $9 | |
2019 | $12.57 | 0.03 | 2.39 | 2.42 | (0.04) | (1.11) | (1.15) | $13.84 | 22.04% | 0.87% | 0.27% | 68% | $7 | |
2018 | $13.90 | 0.06 | 0.12 | 0.18 | (0.04) | (1.47) | (1.51) | $12.57 | 1.52% | 0.87% | 0.49% | 42% | $6 | |
2017(6) | $11.90 | 0.03 | 1.97 | 2.00 | — | — | — | $13.90 | 16.81% | 0.88%(4) | 0.34%(4) | 54%(7) | $6 | |
R6 Class | | | | | | | | | | | | | |
2021(3) | $15.03 | 0.07 | 2.02 | 2.09 | — | (1.44) | (1.44) | $15.68 | 15.23% | 0.72%(4) | 0.97%(4) | 16% | $107,028 | |
2020 | $13.92 | 0.03 | 3.25 | 3.28 | (0.05) | (2.12) | (2.17) | $15.03 | 27.44% | 0.72% | 0.21% | 73% | $90,433 | |
2019 | $12.63 | 0.05 | 2.40 | 2.45 | (0.05) | (1.11) | (1.16) | $13.92 | 22.30% | 0.72% | 0.42% | 68% | $65,850 | |
2018 | $13.98 | 0.09 | 0.10 | 0.19 | (0.07) | (1.47) | (1.54) | $12.63 | 1.58% | 0.72% | 0.64% | 42% | $48,147 | |
2017 | $11.05 | 0.05 | 3.05 | 3.10 | (0.04) | (0.13) | (0.17) | $13.98 | 28.46% | 0.73% | 0.49% | 54% | $37,248 | |
2016 | $12.23 | 0.07 | (0.43) | (0.36) | (0.05) | (0.77) | (0.82) | $11.05 | (2.91)% | 0.73% | 0.62% | 57% | $16,508 | |
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Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)Six months ended May 28, 2021 (unaudited).
(4)Annualized.
(5)Per-share amount was less than $0.005.
(6)April 10, 2017 (commencement of sale) through November 30, 2017.
(7)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2017.
See Notes to Financial Statements.
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Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2019 through December 31, 2020. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century Investments’ website at americancentury.com/proxy and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
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American Century World Mutual Funds, Inc. | |
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Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |
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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. | |
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©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92631 2107 | |
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| Semiannual Report |
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| May 28, 2021 |
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| Focused International Growth Fund |
| Investor Class (AFCNX) |
| I Class (AFCSX) |
| A Class (AFCLX) |
| C Class (AFCHX) |
| R Class (AFCWX) |
| R6 Class (AFCMX) |
| G Class (AFCGX) |
| | | | | |
President’s Letter | |
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Fund Characteristics | |
Shareholder Fee Example | |
Schedule of Investments | |
Statement of Assets and Liabilities | |
Statement of Operations | |
Statement of Changes in Net Assets | |
Notes to Financial Statements | |
Financial Highlights | |
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Liquidity Risk Management Program | |
Additional Information | |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 28, 2021. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Government Support, Vaccines Aided Market Outlook
Broad market sentiment was upbeat to start the period. Investors generally looked beyond periodic upswings in virus cases, COVID-19 lockdowns and restrictions in some regions, and uncertainty surrounding the U.S. political climate. Ongoing support from global central banks and governments helped maintain investor confidence in the financial markets and strengthen the economic backdrop.
In the U.S., improving manufacturing, employment and housing data, along with positive vaccine developments and a late-2020 federal coronavirus aid package helped sustain the upbeat tone into early 2021. Election results gave Democrats control of the White House and Congress, setting the stage for another federal aid bill in March and proposals for significant government spending down the road.
Outside the U.S., economic data improved, albeit at a slower pace. In addition, expanding worldwide vaccine distributions and ongoing reopenings helped bolster economic and earnings outlooks. This improving backdrop combined with massive monetary and fiscal support helped fuel robust gains for stocks and other riskier assets for the six-month period. Economic gains and monetary support, along with supply chain disruptions, helped push inflation higher, particularly in the U.S., where prices increased at the fastest rate in nearly 13 years. However, policymakers insisted the pricing pressures were temporary and maintained their generally upbeat outlooks.
Reopenings Will Shape Market Dynamics
The return to pre-pandemic life is progressing, and as economies throughout the world reopen and rebuild, investors likely will face renewed opportunities and challenges. Global growth data, the virus’s trajectory, supply chain normalization, and the effects of fiscal and monetary policy likely will be among the factors swaying market dynamics.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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MAY 28, 2021 | |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 96.7% |
Temporary Cash Investments | 3.3% |
Temporary Cash Investments - Securities Lending Collateral | 0.2% |
Other Assets and Liabilities | (0.2)% |
| |
Top Five Countries | % of net assets |
France | 20.2% |
United Kingdom | 9.9% |
Spain | 8.3% |
Germany | 8.1% |
Japan | 8.0% |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2020 to May 28, 2021.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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| Beginning Account Value 12/1/20 | Ending Account Value 5/28/21 | Expenses Paid During Period(1) 12/1/20 - 5/28/21 | Annualized Expense Ratio(1) |
Actual | | | | |
Investor Class | $1,000 | $1,122.50 | $5.67 | 1.09% |
I Class | $1,000 | $1,123.50 | $4.63 | 0.89% |
A Class | $1,000 | $1,120.60 | $6.97 | 1.34% |
C Class | $1,000 | $1,116.50 | $10.85 | 2.09% |
R Class | $1,000 | $1,119.20 | $8.26 | 1.59% |
R6 Class | $1,000 | $1,124.10 | $3.85 | 0.74% |
G Class | $1,000 | $1,127.90 | $0.00 | 0.00%(2) |
Hypothetical | | | | |
Investor Class | $1,000 | $1,019.18 | $5.40 | 1.09% |
I Class | $1,000 | $1,020.16 | $4.41 | 0.89% |
A Class | $1,000 | $1,017.95 | $6.63 | 1.34% |
C Class | $1,000 | $1,014.27 | $10.32 | 2.09% |
R Class | $1,000 | $1,016.72 | $7.86 | 1.59% |
R6 Class | $1,000 | $1,020.89 | $3.67 | 0.74% |
G Class | $1,000 | $1,024.52 | $0.00 | 0.00%(2) |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 179, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
(2)Other expenses, which include directors' fees and expenses, did not exceed 0.005%.
MAY 28, 2021 (UNAUDITED)
| | | | | | | | |
| Shares | Value |
COMMON STOCKS — 96.7% | | |
Brazil — 1.3% | | |
Magazine Luiza SA | 149,864 | | $ | 584,020 | |
China — 5.3% | | |
ANTA Sports Products Ltd. | 46,000 | | 928,567 | |
GDS Holdings Ltd., ADR(1) | 7,300 | | 549,106 | |
Wuxi Biologics Cayman, Inc.(1) | 59,000 | | 875,630 | |
| | 2,353,303 | |
Denmark — 2.3% | | |
Novo Nordisk A/S, B Shares | 13,130 | | 1,036,560 | |
Finland — 2.3% | | |
Neste Oyj | 15,070 | | 993,969 | |
France — 20.2% | | |
Air Liquide SA | 4,190 | | 712,577 | |
Capgemini SE | 7,030 | | 1,314,397 | |
Dassault Systemes SE | 3,360 | | 771,745 | |
Edenred(2) | 13,790 | | 759,448 | |
LVMH Moet Hennessy Louis Vuitton SE | 1,560 | | 1,249,610 | |
Safran SA | 7,280 | | 1,100,807 | |
Schneider Electric SE | 8,760 | | 1,394,239 | |
Teleperformance | 2,430 | | 931,043 | |
Valeo SA | 19,640 | | 645,338 | |
| | 8,879,204 | |
Germany — 8.1% | | |
Daimler AG | 9,630 | | 898,457 | |
Infineon Technologies AG | 24,255 | | 980,798 | |
Knorr-Bremse AG | 5,831 | | 724,859 | |
Puma SE | 8,380 | | 957,785 | |
| | 3,561,899 | |
Hong Kong — 4.3% | | |
AIA Group Ltd. | 56,400 | | 752,732 | |
Techtronic Industries Co. Ltd. | 61,000 | | 1,148,272 | |
| | 1,901,004 | |
India — 2.1% | | |
HDFC Bank Ltd., ADR(1) | 12,080 | | 924,482 | |
Indonesia — 1.6% | | |
Bank Central Asia Tbk PT | 309,500 | | 686,388 | |
Ireland — 1.5% | | |
Ryanair Holdings plc, ADR(1) | 5,530 | | 645,628 | |
Japan — 8.0% | | |
FANUC Corp. | 3,000 | | 719,221 | |
Keyence Corp. | 1,800 | | 889,768 | |
Olympus Corp. | 30,500 | | 649,776 | |
Recruit Holdings Co. Ltd. | 24,300 | | 1,245,521 | |
| | 3,504,286 | |
Mexico — 2.9% | | |
Cemex SAB de CV, ADR(1) | 156,630 | | 1,296,896 | |
| | | | | | | | |
| Shares | Value |
Netherlands — 2.7% | | |
Adyen NV(1) | 519 | | $ | 1,201,206 | |
Singapore — 1.7% | | |
Sea Ltd., ADR(1) | 2,930 | | 741,993 | |
Spain — 8.3% | | |
Amadeus IT Group SA(1) | 9,400 | | 709,290 | |
CaixaBank SA(2) | 301,380 | | 1,044,855 | |
Cellnex Telecom SA | 16,844 | | 1,021,853 | |
Iberdrola SA | 63,224 | | 871,479 | |
| | 3,647,477 | |
Sweden — 4.4% | | |
Hexagon AB, B Shares | 68,950 | | 986,821 | |
Telefonaktiebolaget LM Ericsson, B Shares | 69,870 | | 937,136 | |
| | 1,923,957 | |
Switzerland — 6.2% | | |
Lonza Group AG | 1,410 | | 911,507 | |
Partners Group Holding AG | 760 | | 1,147,110 | |
Zur Rose Group AG(1) | 1,800 | | 675,711 | |
| | 2,734,328 | |
Taiwan — 3.6% | | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 74,000 | | 1,571,181 | |
United Kingdom — 9.9% | | |
Ashtead Group plc | 12,970 | | 946,131 | |
ASOS plc(1) | 11,620 | | 803,592 | |
AstraZeneca plc | 4,760 | | 542,514 | |
HSBC Holdings plc | 178,000 | | 1,155,676 | |
Whitbread plc(1) | 20,050 | | 903,029 | |
| | 4,350,942 | |
TOTAL COMMON STOCKS (Cost $33,752,775) | | 42,538,723 | |
TEMPORARY CASH INVESTMENTS — 3.3% | | |
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.75%, 5/15/25 - 8/15/47, valued at $314,810), in a joint trading account at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $308,095) | | 308,095 | |
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.25%, 8/15/46, valued at $523,267), at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $513,000) | | 513,000 | |
State Street Institutional U.S. Government Money Market Fund, Premier Class | 621,211 | | 621,211 | |
TOTAL TEMPORARY CASH INVESTMENTS (Cost $1,442,306) | | 1,442,306 | |
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 0.2% |
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $85,255) | 85,255 | 85,255 | |
TOTAL INVESTMENT SECURITIES — 100.2% (Cost $35,280,336) | | 44,066,284 | |
OTHER ASSETS AND LIABILITIES — (0.2)% | | (80,990) | |
TOTAL NET ASSETS — 100.0% | | $ | 43,985,294 | |
| | | | | |
MARKET SECTOR DIVERSIFICATION |
(as a % of net assets) | |
Information Technology | 24.2% |
Industrials | 20.3% |
Consumer Discretionary | 15.8% |
Financials | 13.0% |
Health Care | 9.1% |
Materials | 4.5% |
Communication Services | 4.0% |
Energy | 2.3% |
Utilities | 2.0% |
Consumer Staples | 1.5% |
Temporary Cash Investments | 3.3% |
Temporary Cash Investments - Securities Lending Collateral | 0.2% |
Other Assets and Liabilities | (0.2)% |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS |
ADR | - | American Depositary Receipt |
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $324,425. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $339,272, which includes securities collateral of $254,017.
See Notes to Financial Statements.
| | |
Statement of Assets and Liabilities |
| | | | | |
MAY 28, 2021 (UNAUDITED) | |
Assets | |
Investment securities, at value (cost of $35,195,081) — including $324,425 of securities on loan | $ | 43,981,029 | |
Investment made with cash collateral received for securities on loan, at value (cost of $85,255) | 85,255 | |
Total investment securities, at value (cost of $35,280,336) | 44,066,284 | |
Receivable for capital shares sold | 8,864 | |
Dividends and interest receivable | 79,460 | |
Securities lending receivable | 188 | |
| 44,154,796 | |
| |
Liabilities | |
Payable for collateral received for securities on loan | 85,255 | |
Payable for capital shares redeemed | 59,277 | |
Accrued management fees | 24,452 | |
Distribution and service fees payable | 518 | |
| 169,502 | |
| |
Net Assets | $ | 43,985,294 | |
| |
Net Assets Consist of: | |
Capital (par value and paid-in surplus) | $ | 33,418,061 | |
Distributable earnings | 10,567,233 | |
| $ | 43,985,294 | |
| | | | | | | | | | | |
| Net Assets | Shares Outstanding | Net Asset Value Per Share |
Investor Class, $0.01 Par Value | $16,493,266 | 807,428 | $20.43 |
I Class, $0.01 Par Value | $12,037,913 | 585,550 | $20.56 |
A Class, $0.01 Par Value | $98,298 | 4,853 | $20.26* |
C Class, $0.01 Par Value | $58,127 | 2,959 | $19.64 |
R Class, $0.01 Par Value | $1,097,210 | 54,603 | $20.09 |
R6 Class, $0.01 Par Value | $176,872 | 8,563 | $20.66 |
G Class, $0.01 Par Value | $14,023,608 | 667,046 | $21.02 |
*Maximum offering price $21.50 (net asset value divided by 0.9425).
See Notes to Financial Statements.
| | | | | |
FOR THE SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) |
Investment Income (Loss) | |
Income: | |
Dividends (net of foreign taxes withheld of $32,741) | $ | 229,339 | |
Securities lending, net | 342 | |
Interest | 141 | |
| 229,822 | |
| |
Expenses: | |
Management fees | 151,137 | |
Distribution and service fees: | |
A Class | 115 | |
C Class | 271 | |
R Class | 2,217 | |
Directors' fees and expenses | 390 | |
Other expenses | 67 | |
| 154,197 | |
Fees waived - G Class | (34,572) | |
| 119,625 | |
| |
Net investment income (loss) | 110,197 | |
| |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on: | |
Investment transactions | 1,757,705 | |
Foreign currency translation transactions | 700 | |
| 1,758,405 | |
| |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 1,645,800 | |
Translation of assets and liabilities in foreign currencies | 427 | |
| 1,646,227 | |
| |
Net realized and unrealized gain (loss) | 3,404,632 | |
| |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 3,514,829 | |
See Notes to Financial Statements.
| | |
Statement of Changes in Net Assets |
| | | | | | | | |
SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2020 |
Increase (Decrease) in Net Assets | May 28, 2021 | November 30, 2020 |
Operations | | |
Net investment income (loss) | $ | 110,197 | | $ | 13,064 | |
Net realized gain (loss) | 1,758,405 | | (52,701) | |
Change in net unrealized appreciation (depreciation) | 1,646,227 | | 4,861,664 | |
Net increase (decrease) in net assets resulting from operations | 3,514,829 | | 4,822,027 | |
| | |
Distributions to Shareholders | | |
From earnings: | | |
Investor Class | — | | (231,555) | |
I Class | — | | (86,412) | |
A Class | — | | (26,816) | |
C Class | — | | (26,219) | |
R Class | — | | (16,491) | |
R6 Class | — | | (5,882) | |
G Class | (8,055) | | (46,910) | |
Decrease in net assets from distributions | (8,055) | | (440,285) | |
| | |
Capital Share Transactions | | |
Net increase (decrease) in net assets from capital share transactions (Note 5) | 19,781,178 | | 3,612,428 | |
| | |
Net increase (decrease) in net assets | 23,287,952 | | 7,994,170 | |
| | |
Net Assets | | |
Beginning of period | 20,697,342 | | 12,703,172 | |
End of period | $ | 43,985,294 | | $ | 20,697,342 | |
See Notes to Financial Statements.
| | |
Notes to Financial Statements |
MAY 28, 2021 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Focused International Growth Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek capital growth.
The fund offers the Investor Class, I Class, A Class, C Class, R Class, R6 Class and G Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value (NAV) per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported NAV per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 28, 2021.
| | | | | | | | | | | | | | | | | |
Remaining Contractual Maturity of Agreements |
| Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total |
Securities Lending Transactions(1) | | | | |
Common Stocks | $ | 85,255 | | — | | — | | — | | $ | 85,255 | |
Gross amount of recognized liabilities for securities lending transactions | $ | 85,255 | |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The investment advisor agreed to waive the G Class's management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors.
The annual management fee for each class is as follows:
| | | | | | | | | | | | | | | | | | | | |
Investor Class | I Class | A Class | C Class | R Class | R6 Class | G Class |
1.09% | 0.89% | 1.09% | 1.09% | 1.09% | 0.74% | 0.00%(1) |
(1)Annual management fee before waiver was 0.74%.
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 28, 2021 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases were $22,722 and there were no interfund sales.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 28, 2021 were $26,473,661 and $7,045,117, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
| | | | | | | | | | | | | | |
| Six months ended May 28, 2021 | Year ended November 30, 2020 |
| Shares | Amount | Shares | Amount |
Investor Class/Shares Authorized | 50,000,000 | | | 50,000,000 | | |
Sold | 451,120 | | $ | 8,706,906 | | 444,978 | | $ | 6,842,135 | |
Issued in reinvestment of distributions | — | | — | | 16,376 | | 229,083 | |
Redeemed | (179,281) | | (3,470,658) | | (391,362) | | (5,932,032) | |
| 271,839 | | 5,236,248 | | 69,992 | | 1,139,186 | |
I Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | 286,901 | | 5,629,554 | | 360,602 | | 5,962,098 | |
Issued in reinvestment of distributions | — | | — | | 6,159 | | 86,412 | |
Redeemed | (6,582) | | (128,691) | | (242,553) | | (3,916,623) | |
| 280,319 | | 5,500,863 | | 124,208 | | 2,131,887 | |
A Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | 385 | | 7,431 | | 3,159 | | 53,590 | |
Issued in reinvestment of distributions | — | | — | | 1,925 | | 26,816 | |
Redeemed | (241) | | (4,730) | | (57,907) | | (1,014,907) | |
| 144 | | 2,701 | | (52,823) | | (934,501) | |
C Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | 299 | | 5,751 | | 2,105 | | 31,528 | |
Issued in reinvestment of distributions | — | | — | | 1,921 | | 26,219 | |
Redeemed | (148) | | (2,717) | | (57,410) | | (979,320) | |
| 151 | | 3,034 | | (53,384) | | (921,573) | |
R Class/Shares Authorized | 20,000,000 | | | 20,000,000 | | |
Sold | 20,414 | | 388,903 | | 24,980 | | 357,602 | |
Issued in reinvestment of distributions | — | | — | | 1,193 | | 16,491 | |
Redeemed | (3,876) | | (74,796) | | (21,018) | | (324,511) | |
| 16,538 | | 314,107 | | 5,155 | | 49,582 | |
R6 Class/Shares Authorized | 20,000,000 | | | 20,000,000 | | |
Sold | 6,848 | | 133,998 | | 170 | | 2,596 | |
Issued in reinvestment of distributions | — | | — | | 418 | | 5,882 | |
Redeemed | (8,607) | | (164,171) | | (2,884) | | (50,420) | |
| (1,759) | | (30,173) | | (2,296) | | (41,942) | |
G Class/Shares Authorized | 40,000,000 | | | 40,000,000 | | |
Sold | 469,725 | | 9,493,007 | | 178,453 | | 2,580,442 | |
Issued in reinvestment of distributions | 414 | | 8,055 | | 3,350 | | 46,910 | |
Redeemed | (36,710) | | (746,664) | | (28,318) | | (437,563) | |
| 433,429 | | 8,754,398 | | 153,485 | | 2,189,789 | |
Net increase (decrease) | 1,000,661 | | $ | 19,781,178 | | 244,337 | | $ | 3,612,428 | |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
| | | | | | | | | | | |
| Level 1 | Level 2 | Level 3 |
Assets | | | |
Investment Securities | | | |
Common Stocks | | | |
China | $ | 549,106 | | $ | 1,804,197 | | — | |
India | 924,482 | | — | | — | |
Ireland | 645,628 | | — | | — | |
Mexico | 1,296,896 | | — | | — | |
Singapore | 741,993 | | — | | — | |
Other Countries | — | | 36,576,421 | | — | |
Temporary Cash Investments | 621,211 | | 821,095 | | — | |
Temporary Cash Investments - Securities Lending Collateral | 85,255 | | — | | — | |
| $ | 4,864,571 | | $ | 39,201,713 | | — | |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
| | | | | |
Federal tax cost of investments | $ | 35,359,791 | |
Gross tax appreciation of investments | $ | 8,987,892 | |
Gross tax depreciation of investments | (281,399) | |
Net tax appreciation (depreciation) of investments | $ | 8,706,493 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2020, the fund had accumulated short-term capital losses of $(29,351), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) |
Per-Share Data | Ratios and Supplemental Data |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
Investor Class |
2021(3) | $18.20 | 0.02 | 2.21 | 2.23 | — | — | — | $20.43 | 12.25% | 1.09%(4) | 1.09%(4) | 0.34%(4) | 0.34%(4) | 23% | $16,493 | |
2020 | $14.34 | (0.01) | 4.33 | 4.32 | — | (0.46) | (0.46) | $18.20 | 31.15% | 1.18% | 1.18% | (0.09)% | (0.09)% | 92% | $9,749 | |
2019 | $11.92 | 0.02 | 2.46 | 2.48 | (0.06) | — | (0.06) | $14.34 | 20.96% | 1.24% | 1.24% | 0.13% | 0.13% | 96% | $6,677 | |
2018 | $12.81 | 0.08 | (0.97) | (0.89) | — | — | — | $11.92 | (6.95)% | 1.23% | 1.23% | 0.59% | 0.59% | 82% | $6,180 | |
2017 | $9.75 | 0.01 | 3.13 | 3.14 | (0.08) | — | (0.08) | $12.81 | 32.40% | 1.24% | 1.24% | 0.14% | 0.14% | 76% | $5,882 | |
2016(5) | $10.00 | 0.04 | (0.29) | (0.25) | — | — | — | $9.75 | (2.50)% | 1.23%(4) | 1.23%(4) | 0.56%(4) | 0.56%(4) | 47% | $2,074 | |
I Class |
2021(3) | $18.30 | 0.05 | 2.21 | 2.26 | — | — | — | $20.56 | 12.35% | 0.89%(4) | 0.89%(4) | 0.54%(4) | 0.54%(4) | 23% | $12,038 | |
2020 | $14.39 | 0.01 | 4.36 | 4.37 | — | (0.46) | (0.46) | $18.30 | 31.39% | 0.98% | 0.98% | 0.11% | 0.11% | 92% | $5,585 | |
2019 | $11.96 | 0.02 | 2.49 | 2.51 | (0.08) | — | (0.08) | $14.39 | 21.21% | 1.04% | 1.04% | 0.33% | 0.33% | 96% | $2,605 | |
2018 | $12.83 | 0.09 | (0.96) | (0.87) | — | — | — | $11.96 | (6.78)% | 1.03% | 1.03% | 0.79% | 0.79% | 82% | $776 | |
2017 | $9.76 | 0.05 | 3.11 | 3.16 | (0.09) | — | (0.09) | $12.83 | 32.74% | 1.04% | 1.04% | 0.34% | 0.34% | 76% | $777 | |
2016(5) | $10.00 | 0.05 | (0.29) | (0.24) | — | — | — | $9.76 | (2.40)% | 1.03%(4) | 1.03%(4) | 0.76%(4) | 0.76%(4) | 47% | $586 | |
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For a Share Outstanding Throughout the Years Ended November 30 (except as noted) |
Per-Share Data | Ratios and Supplemental Data |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
A Class |
2021(3) | $18.07 | (0.01) | 2.20 | 2.19 | — | — | — | $20.26 | 12.06% | 1.34%(4) | 1.34%(4) | 0.09%(4) | 0.09%(4) | 23% | $98 | |
2020 | $14.28 | (0.04) | 4.29 | 4.25 | — | (0.46) | (0.46) | $18.07 | 30.78% | 1.43% | 1.43% | (0.34)% | (0.34)% | 92% | $85 | |
2019 | $11.87 | —(6) | 2.44 | 2.44 | (0.03) | — | (0.03) | $14.28 | 20.66% | 1.49% | 1.49% | (0.12)% | (0.12)% | 96% | $822 | |
2018 | $12.79 | 0.03 | (0.95) | (0.92) | — | — | — | $11.87 | (7.19)% | 1.48% | 1.48% | 0.34% | 0.34% | 82% | $1,217 | |
2017 | $9.73 | (0.01) | 3.12 | 3.11 | (0.05) | — | (0.05) | $12.79 | 32.13% | 1.49% | 1.49% | (0.11)% | (0.11)% | 76% | $1,295 | |
2016(5) | $10.00 | 0.02 | (0.29) | (0.27) | — | — | — | $9.73 | (2.70)% | 1.48%(4) | 1.48%(4) | 0.31%(4) | 0.31%(4) | 47% | $978 | |
C Class |
2021(3) | $17.59 | (0.08) | 2.13 | 2.05 | — | — | — | $19.64 | 11.65% | 2.09%(4) | 2.09%(4) | (0.66)%(4) | (0.66)%(4) | 23% | $58 | |
2020 | $14.01 | (0.14) | 4.18 | 4.04 | — | (0.46) | (0.46) | $17.59 | 29.84% | 2.18% | 2.18% | (1.09)% | (1.09)% | 92% | $49 | |
2019 | $11.70 | (0.09) | 2.40 | 2.31 | — | — | — | $14.01 | 19.85% | 2.24% | 2.24% | (0.87)% | (0.87)% | 96% | $787 | |
2018 | $12.70 | (0.07) | (0.93) | (1.00) | — | — | — | $11.70 | (7.95)% | 2.23% | 2.23% | (0.41)% | (0.41)% | 82% | $1,170 | |
2017 | $9.68 | (0.09) | 3.11 | 3.02 | — | — | — | $12.70 | 31.20% | 2.24% | 2.24% | (0.86)% | (0.86)% | 76% | $1,270 | |
2016(5) | $10.00 | (0.03) | (0.29) | (0.32) | — | — | — | $9.68 | (3.20)% | 2.23%(4) | 2.23%(4) | (0.44)%(4) | (0.44)%(4) | 47% | $968 | |
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For a Share Outstanding Throughout the Years Ended November 30 (except as noted) |
Per-Share Data | Ratios and Supplemental Data |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
R Class |
2021(3) | $17.95 | (0.02) | 2.16 | 2.14 | — | — | — | $20.09 | 11.92% | 1.59%(4) | 1.59%(4) | (0.16)%(4) | (0.16)%(4) | 23% | $1,097 | |
2020 | $14.22 | (0.08) | 4.27 | 4.19 | — | (0.46) | (0.46) | $17.95 | 30.47% | 1.68% | 1.68% | (0.59)% | (0.59)% | 92% | $683 | |
2019 | $11.82 | (0.04) | 2.44 | 2.40 | —(6) | — | —(6) | $14.22 | 20.36% | 1.74% | 1.74% | (0.37)% | (0.37)% | 96% | $468 | |
2018 | $12.77 | —(6) | (0.95) | (0.95) | — | — | — | $11.82 | (7.44)% | 1.73% | 1.73% | 0.09% | 0.09% | 82% | $406 | |
2017 | $9.72 | (0.04) | 3.12 | 3.08 | (0.03) | — | (0.03) | $12.77 | 31.73% | 1.74% | 1.74% | (0.36)% | (0.36)% | 76% | $298 | |
2016(5) | $10.00 | —(6) | (0.28) | (0.28) | — | — | — | $9.72 | (2.80)% | 1.73%(4) | 1.73%(4) | 0.06%(4) | 0.06%(4) | 47% | $196 | |
R6 Class |
2021(3) | $18.37 | 0.05 | 2.24 | 2.29 | — | — | — | $20.66 | 12.41% | 0.74%(4) | 0.74%(4) | 0.69%(4) | 0.69%(4) | 23% | $177 | |
2020 | $14.42 | 0.05 | 4.36 | 4.41 | — | (0.46) | (0.46) | $18.37 | 31.61% | 0.83% | 0.83% | 0.26% | 0.26% | 92% | $190 | |
2019 | $11.99 | 0.08 | 2.45 | 2.53 | (0.10) | — | (0.10) | $14.42 | 21.34% | 0.89% | 0.89% | 0.48% | 0.48% | 96% | $182 | |
2018 | $12.84 | 0.11 | (0.96) | (0.85) | — | — | — | $11.99 | (6.62)% | 0.88% | 0.88% | 0.94% | 0.94% | 82% | $242 | |
2017 | $9.77 | 0.06 | 3.12 | 3.18 | (0.11) | — | (0.11) | $12.84 | 32.90% | 0.89% | 0.89% | 0.49% | 0.49% | 76% | $260 | |
2016(5) | $10.00 | 0.06 | (0.29) | (0.23) | — | — | — | $9.77 | (2.30)% | 0.88%(4) | 0.88%(4) | 0.91%(4) | 0.91%(4) | 47% | $195 | |
G Class |
2021(3) | $18.65 | 0.16 | 2.22 | 2.38 | (0.01) | — | (0.01) | $21.02 | 12.79% | 0.00%(4) | 0.74%(4) | 1.43%(4) | 0.69%(4) | 23% | $14,024 | |
2020 | $14.51 | 0.17 | 4.43 | 4.60 | — | (0.46) | (0.46) | $18.65 | 32.75% | 0.00% | 0.83% | 1.09% | 0.26% | 92% | $4,356 | |
2019(7) | $12.94 | 0.12 | 1.45 | 1.57 | — | — | — | $14.51 | 12.13% | 0.01%(4) | 0.89%(4) | 1.29%(4) | 0.41%(4) | 96%(8) | $1,163 | |
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Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)Six months ended May 28, 2021 (unaudited).
(4)Annualized.
(5)March 29, 2016 (fund inception) through November 30, 2016.
(6)Per-share amount was less than $0.005.
(7)April 1, 2019 (commencement of sale) through November 30, 2019.
(8)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2019.
See Notes to Financial Statements.
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Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2019 through December 31, 2020. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century Investments’ website at americancentury.com/proxy and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
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Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
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American Century World Mutual Funds, Inc. | |
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Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |
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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. | |
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©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92637 2107 | |
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| Semiannual Report |
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| May 28, 2021 |
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| Global Small Cap Fund |
| Investor Class (AGCVX) |
| I Class (AGCSX) |
| A Class (AGCLX) |
| C Class (AGCHX) |
| R Class (AGCWX) |
| R6 Class (AGCTX) |
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President’s Letter | |
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Fund Characteristics | |
Shareholder Fee Example | |
Schedule of Investments | |
Statement of Assets and Liabilities | |
Statement of Operations | |
Statement of Changes in Net Assets | |
Notes to Financial Statements | |
Financial Highlights | |
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Liquidity Risk Management Program | |
Additional Information | |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 28, 2021. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Government Support, Vaccines Aided Market Outlook
Broad market sentiment was upbeat to start the period. Investors generally looked beyond periodic upswings in virus cases, COVID-19 lockdowns and restrictions in some regions, and uncertainty surrounding the U.S. political climate. Ongoing support from global central banks and governments helped maintain investor confidence in the financial markets and strengthen the economic backdrop.
In the U.S., improving manufacturing, employment and housing data, along with positive vaccine developments and a late-2020 federal coronavirus aid package helped sustain the upbeat tone into early 2021. Election results gave Democrats control of the White House and Congress, setting the stage for another federal aid bill in March and proposals for significant government spending down the road.
Outside the U.S., economic data improved, albeit at a slower pace. In addition, expanding worldwide vaccine distributions and ongoing reopenings helped bolster economic and earnings outlooks. This improving backdrop combined with massive monetary and fiscal support helped fuel robust gains for stocks and other riskier assets for the six-month period. Economic gains and monetary support, along with supply chain disruptions, helped push inflation higher, particularly in the U.S., where prices increased at the fastest rate in nearly 13 years. However, policymakers insisted the pricing pressures were temporary and maintained their generally upbeat outlooks.
Reopenings Will Shape Market Dynamics
The return to pre-pandemic life is progressing, and as economies throughout the world reopen and rebuild, investors likely will face renewed opportunities and challenges. Global growth data, the virus’s trajectory, supply chain normalization, and the effects of fiscal and monetary policy likely will be among the factors swaying market dynamics.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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MAY 28, 2021 | |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 96.8% |
Exchange-Traded Funds | 1.5% |
Temporary Cash Investments | 1.5% |
Temporary Cash Investments - Securities Lending Collateral | 0.6% |
Other Assets and Liabilities | (0.4)% |
| |
Top Five Countries* | % of net assets |
United States | 56.8% |
Canada | 6.4% |
Japan | 6.3% |
United Kingdom | 6.1% |
Sweden | 2.5% |
*Exposure indicated excludes Exchange-Traded Funds. The Schedule of Investments provides additional information on the fund's portfolio holdings.
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2020 to May 28, 2021.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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| Beginning Account Value 12/1/20 | Ending Account Value 5/28/21 | Expenses Paid During Period(1) 12/1/20 - 5/28/21 | Annualized Expense Ratio(1) |
Actual | | | | |
Investor Class | $1,000 | $1,220.50 | $6.04 | 1.11% |
I Class | $1,000 | $1,221.60 | $4.96 | 0.91% |
A Class | $1,000 | $1,218.80 | $7.40 | 1.36% |
C Class | $1,000 | $1,214.00 | $11.45 | 2.11% |
R Class | $1,000 | $1,217.60 | $8.75 | 1.61% |
R6 Class | $1,000 | $1,222.30 | $4.14 | 0.76% |
Hypothetical | | | | |
Investor Class | $1,000 | $1,019.08 | $5.50 | 1.11% |
I Class | $1,000 | $1,020.06 | $4.51 | 0.91% |
A Class | $1,000 | $1,017.85 | $6.73 | 1.36% |
C Class | $1,000 | $1,014.17 | $10.42 | 2.11% |
R Class | $1,000 | $1,016.63 | $7.96 | 1.61% |
R6 Class | $1,000 | $1,020.79 | $3.77 | 0.76% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 179, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
MAY 28, 2021 (UNAUDITED)
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| Shares | Value |
COMMON STOCKS — 96.8% | | |
Australia — 1.7% | | |
Champion Iron Ltd.(1) | 81,203 | | $ | 412,776 | |
Nickel Mines Ltd. | 319,182 | | 250,504 | |
Seven Group Holdings Ltd.(2) | 20,809 | | 327,253 | |
| | 990,533 | |
Belgium — 1.5% | | |
D'ieteren SA | 4,338 | | 512,124 | |
Melexis NV | 3,487 | | 363,670 | |
| | 875,794 | |
Brazil — 1.1% | | |
Locaweb Servicos de Internet SA | 61,700 | | 311,004 | |
Pet Center Comercio e Participacoes SA | 73,783 | | 327,031 | |
| | 638,035 | |
Canada — 6.4% | | |
Boralex, Inc., A Shares(2) | 7,721 | | 235,391 | |
BRP, Inc. | 4,095 | | 345,146 | |
Capstone Mining Corp.(1) | 201,737 | | 928,486 | |
Colliers International Group, Inc. (Toronto) | 5,233 | | 581,454 | |
ECN Capital Corp. | 99,466 | | 692,446 | |
TFI International, Inc. | 5,362 | | 513,985 | |
Whitecap Resources, Inc.(2) | 88,517 | | 419,852 | |
| | 3,716,760 | |
China — 1.6% | | |
21Vianet Group, Inc., ADR(1) | 11,343 | | 253,176 | |
China Yongda Automobiles Services Holdings Ltd. | 389,500 | | 687,017 | |
| | 940,193 | |
Denmark — 1.5% | | |
Pandora A/S | 6,408 | | 865,532 | |
Finland — 1.3% | | |
Metso Outotec Oyj | 65,266 | | 773,629 | |
France — 1.7% | | |
APERAM SA(2) | 11,163 | | 615,442 | |
SOITEC(1) | 1,998 | | 403,671 | |
| | 1,019,113 | |
Germany — 1.1% | | |
flatexDEGIRO AG(1) | 2,879 | | 362,295 | |
Hypoport SE(1) | 544 | | 304,228 | |
| | 666,523 | |
Israel — 2.2% | | |
Kornit Digital Ltd.(1) | 5,291 | | 551,322 | |
Nova Measuring Instruments Ltd.(1) | 7,045 | | 706,050 | |
| | 1,257,372 | |
Japan — 6.3% | | |
Appier Group, Inc.(1) | 16,100 | | 258,866 | |
Asics Corp. | 14,000 | | 334,330 | |
CKD Corp. | 10,600 | | 240,575 | |
en-japan, Inc. | 8,400 | | 286,795 | |
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| Shares | Value |
Food & Life Cos. Ltd. | 8,000 | | $ | 355,643 | |
Japan Steel Works Ltd. (The) | 8,500 | | 225,708 | |
Kuraray Co. Ltd. | 24,500 | | 259,171 | |
Nextage Co. Ltd. | 29,000 | | 438,566 | |
Nippon Gas Co. Ltd. | 23,400 | | 362,832 | |
Open House Co. Ltd. | 10,000 | | 463,234 | |
Zeon Corp. | 29,200 | | 443,832 | |
| | 3,669,552 | |
Netherlands — 1.2% | | |
Basic-Fit NV(1) | 8,644 | | 415,875 | |
Corbion NV | 5,447 | | 314,337 | |
| | 730,212 | |
Norway — 1.1% | | |
Bakkafrost P/F | 7,100 | | 633,171 | |
South Korea — 0.8% | | |
SK Materials Co. Ltd. | 1,583 | | 456,511 | |
Sweden — 2.5% | | |
Lifco AB, B Shares | 21,120 | | 471,090 | |
Nordic Entertainment Group AB, B Shares(1) | 5,865 | | 282,689 | |
Stillfront Group AB(1) | 17,612 | | 184,522 | |
Trelleborg AB, B Shares | 21,246 | | 545,167 | |
| | 1,483,468 | |
Switzerland — 0.4% | | |
SIG Combibloc Group AG(1) | 8,770 | | 231,979 | |
Taiwan — 1.5% | | |
Accton Technology Corp. | 27,000 | | 285,535 | |
Airtac International Group | 16,000 | | 579,249 | |
| | 864,784 | |
United Kingdom — 6.1% | | |
boohoo Group plc(1) | 1,894 | | 8,572 | |
Dr. Martens plc(1) | 65,764 | | 456,870 | |
Electrocomponents plc | 48,601 | | 681,598 | |
Fevertree Drinks plc | 9,404 | | 341,105 | |
Howden Joinery Group plc | 53,071 | | 599,484 | |
IWG plc(1) | 63,199 | | 322,612 | |
Pets at Home Group plc | 46,916 | | 298,154 | |
S4 Capital plc(1) | 53,411 | | 421,020 | |
Weir Group plc (The)(1) | 14,764 | | 402,324 | |
| | 3,531,739 | |
United States — 56.8% | | |
American Eagle Outfitters, Inc. | 19,830 | | 702,577 | |
ArcBest Corp. | 5,836 | | 454,274 | |
Arko Corp.(1) | 25,356 | | 265,984 | |
Axogen, Inc.(1) | 18,592 | | 377,418 | |
Bloomin' Brands, Inc.(1) | 14,508 | | 428,711 | |
BRP Group, Inc., Class A(1) | 13,210 | | 324,702 | |
Brunswick Corp. | 5,392 | | 551,224 | |
Builders FirstSource, Inc.(1) | 10,362 | | 461,523 | |
Callaway Golf Co.(1) | 18,759 | | 692,582 | |
Capri Holdings Ltd.(1) | 13,178 | | 747,324 | |
Clean Harbors, Inc.(1) | 6,572 | | 611,853 | |
Crocs, Inc.(1) | 5,678 | | 574,841 | |
| | | | | | | | |
| Shares | Value |
Deckers Outdoor Corp.(1) | 1,214 | | $ | 407,224 | |
DigitalOcean Holdings, Inc.(1) | 4,180 | | 175,727 | |
Diversey Holdings Ltd.(1) | 23,086 | | 389,692 | |
elf Beauty, Inc.(1) | 20,117 | | 563,276 | |
Encompass Health Corp. | 2,939 | | 252,137 | |
Endeavor Group Holdings, Inc., Class A(1) | 10,207 | | 302,638 | |
Evoqua Water Technologies Corp.(1) | 10,393 | | 323,430 | |
Fox Factory Holding Corp.(1) | 4,096 | | 636,846 | |
Glacier Bancorp, Inc. | 11,903 | | 693,350 | |
Global Medical REIT, Inc. | 43,331 | | 623,966 | |
Goosehead Insurance, Inc., Class A | 641 | | 57,607 | |
H.B. Fuller Co. | 9,935 | | 686,707 | |
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 1,173 | | 57,723 | |
Health Catalyst, Inc.(1) | 2,792 | | 149,902 | |
Huntsman Corp. | 17,957 | | 509,620 | |
I3 Verticals, Inc., Class A(1) | 11,909 | | 370,013 | |
Innovage Holding Corp.(1) | 11,331 | | 242,483 | |
Jabil, Inc. | 10,778 | | 608,418 | |
JetBlue Airways Corp.(1) | 23,745 | | 477,275 | |
Kinsale Capital Group, Inc. | 1,591 | | 264,838 | |
Korn Ferry | 8,990 | | 588,036 | |
Lattice Semiconductor Corp.(1) | 5,914 | | 313,856 | |
Leslie's, Inc.(1) | 10,077 | | 293,845 | |
Lovesac Co. (The)(1) | 5,932 | | 492,475 | |
MACOM Technology Solutions Holdings, Inc.(1) | 4,575 | | 270,840 | |
Manhattan Associates, Inc.(1) | 2,905 | | 395,022 | |
Masonite International Corp.(1) | 4,898 | | 585,556 | |
MAXIMUS, Inc. | 3,565 | | 330,369 | |
MGP Ingredients, Inc. | 3,952 | | 275,415 | |
Natera, Inc.(1) | 3,870 | | 364,322 | |
National Instruments Corp. | 3,819 | | 155,815 | |
nCino, Inc.(1) | 1,672 | | 102,193 | |
NeoGenomics, Inc.(1) | 6,513 | | 267,228 | |
Newmark Group, Inc., Class A | 39,112 | | 504,545 | |
Onto Innovation, Inc.(1) | 4,332 | | 310,908 | |
Open Lending Corp., Class A(1) | 16,320 | | 629,626 | |
Option Care Health, Inc.(1) | 21,735 | | 398,620 | |
Ortho Clinical Diagnostics Holdings plc(1) | 24,770 | | 509,023 | |
Planet Fitness, Inc., Class A(1) | 5,283 | | 416,142 | |
Power Integrations, Inc. | 3,350 | | 275,337 | |
QuinStreet, Inc.(1) | 25,032 | | 453,330 | |
R1 RCM, Inc.(1) | 28,668 | | 663,664 | |
RadNet, Inc.(1) | 25,286 | | 669,320 | |
Repay Holdings Corp.(1) | 11,919 | | 270,680 | |
Revolve Group, Inc.(1) | 2,581 | | 143,091 | |
RH(1) | 851 | | 545,534 | |
Ryman Hospitality Properties, Inc.(1) | 8,711 | | 652,541 | |
SailPoint Technologies Holdings, Inc.(1) | 5,194 | | 241,677 | |
SeaSpine Holdings Corp.(1) | 13,970 | | 284,709 | |
Semtech Corp.(1) | 4,587 | | 288,981 | |
Sensata Technologies Holding plc(1) | 6,532 | | 388,197 | |
SI-BONE, Inc.(1) | 8,288 | | 250,049 | |
| | | | | | | | |
| Shares | Value |
Silk Road Medical, Inc.(1) | 3,417 | | $ | 165,998 | |
Silvergate Capital Corp., Class A(1) | 4,049 | | 451,059 | |
Skyline Champion Corp.(1) | 3,253 | | 164,764 | |
SP Plus Corp.(1) | 17,018 | | 556,318 | |
Spirit AeroSystems Holdings, Inc., Class A | 14,858 | | 731,162 | |
Sprout Social, Inc., Class A(1) | 5,847 | | 405,899 | |
Summit Materials, Inc., Class A(1) | 18,892 | | 657,819 | |
Tandem Diabetes Care, Inc.(1) | 1,945 | | 166,084 | |
TCF Financial Corp. | 9,755 | | 463,363 | |
Travel & Leisure Co. | 10,376 | | 675,996 | |
Triumph Bancorp, Inc.(1) | 5,926 | | 496,302 | |
Veeco Instruments, Inc.(1) | 12,738 | | 303,419 | |
Wintrust Financial Corp. | 12,382 | | 995,760 | |
Wyndham Hotels & Resorts, Inc. | 7,706 | | 578,412 | |
| | 33,129,186 | |
TOTAL COMMON STOCKS (Cost $40,418,023) | | 56,474,086 | |
EXCHANGE-TRADED FUNDS — 1.5% | | |
iShares MSCI EAFE ETF | 699 | | 56,500 | |
Schwab International Small-Cap Equity ETF | 16,100 | | 682,157 | |
Schwab US Small-Cap ETF(2) | 1,408 | | 144,771 | |
TOTAL EXCHANGE-TRADED FUNDS (Cost $834,482) | | 883,428 | |
TEMPORARY CASH INVESTMENTS — 1.5% | | |
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.75%, 5/15/25 - 8/15/47, valued at $198,697), in a joint trading account at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $194,459) | | 194,459 | |
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.375%, 11/15/48, valued at $329,504), at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $323,000) | | 323,000 | |
State Street Institutional U.S. Government Money Market Fund, Premier Class | 392,086 | | 392,086 | |
TOTAL TEMPORARY CASH INVESTMENTS (Cost $909,545) | | 909,545 | |
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 0.6% |
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $340,100) | 340,100 | 340,100 | |
TOTAL INVESTMENT SECURITIES — 100.4% (Cost $42,502,150) | | 58,607,159 | |
OTHER ASSETS AND LIABILITIES — (0.4)% | | (245,631) | |
TOTAL NET ASSETS — 100.0% | | $ | 58,361,528 | |
| | | | | |
MARKET SECTOR DIVERSIFICATION |
(as a % of net assets) | |
Consumer Discretionary | 23.8% |
Industrials | 19.5% |
Information Technology | 12.6% |
Materials | 10.5% |
Financials | 9.9% |
Health Care | 8.1% |
Real Estate | 4.7% |
Consumer Staples | 3.2% |
Communication Services | 2.8% |
Utilities | 1.0% |
Energy | 0.7% |
Exchange-Traded Funds | 1.5% |
Temporary Cash Investments | 1.5% |
Temporary Cash Investments - Securities Lending Collateral | 0.6% |
Other Assets and Liabilities | (0.4)% |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS |
ADR | - | American Depositary Receipt |
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $1,679,993. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $1,753,843, which includes securities collateral of $1,413,743.
See Notes to Financial Statements.
| | |
Statement of Assets and Liabilities |
| | | | | |
MAY 28, 2021 (UNAUDITED) | |
Assets | |
Investment securities, at value (cost of $42,162,050) — including $1,679,993 of securities on loan | $ | 58,267,059 | |
Investment made with cash collateral received for securities on loan, at value (cost of $340,100) | 340,100 | |
Total investment securities, at value (cost of $42,502,150) | 58,607,159 | |
Foreign currency holdings, at value (cost of $96,103) | 96,129 | |
Receivable for investments sold | 226,755 | |
Receivable for capital shares sold | 57,455 | |
Dividends and interest receivable | 72,623 | |
Securities lending receivable | 1,026 | |
Other assets | 1,621 | |
| 59,062,768 | |
| |
Liabilities | |
Payable for collateral received for securities on loan | 340,100 | |
Payable for investments purchased | 310,200 | |
Payable for capital shares redeemed | 3,128 | |
Accrued management fees | 47,129 | |
Distribution and service fees payable | 683 | |
| 701,240 | |
| |
Net Assets | $ | 58,361,528 | |
| |
Net Assets Consist of: | |
Capital (par value and paid-in surplus) | $ | 34,905,644 | |
Distributable earnings | 23,455,884 | |
| $ | 58,361,528 | |
| | | | | | | | | | | |
| Net Assets | Shares Outstanding | Net Asset Value Per Share |
Investor Class, $0.01 Par Value | $31,485,529 | 1,299,010 | $24.24 |
I Class, $0.01 Par Value | $7,630,859 | 311,106 | $24.53 |
A Class, $0.01 Par Value | $89,018 | 3,726 | $23.89* |
C Class, $0.01 Par Value | $64,959 | 2,841 | $22.86 |
R Class, $0.01 Par Value | $1,514,104 | 64,299 | $23.55 |
R6 Class, $0.01 Par Value | $17,577,059 | 710,373 | $24.74 |
*Maximum offering price $25.35 (net asset value divided by 0.9425).
See Notes to Financial Statements.
| | | | | |
FOR THE SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) |
Investment Income (Loss) | |
Income: | |
Dividends (net of foreign taxes withheld of $13,136) | $ | 202,207 | |
Securities lending, net | 6,652 | |
Interest | 113 | |
| 208,972 | |
| |
Expenses: | |
Management fees | 257,973 | |
Distribution and service fees: | |
A Class | 96 | |
C Class | 293 | |
R Class | 2,876 | |
Directors' fees and expenses | 689 | |
Other expenses | 2,637 | |
| 264,564 | |
| |
Net investment income (loss) | (55,592) | |
| |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on: | |
Investment transactions | 8,832,868 | |
Foreign currency translation transactions | (1,989) | |
| 8,830,879 | |
| |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 1,717,807 | |
Translation of assets and liabilities in foreign currencies | 792 | |
| 1,718,599 | |
| |
Net realized and unrealized gain (loss) | 10,549,478 | |
| |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 10,493,886 | |
See Notes to Financial Statements.
| | |
Statement of Changes in Net Assets |
| | | | | | | | |
SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2020 |
Increase (Decrease) in Net Assets | May 28, 2021 | November 30, 2020 |
Operations | | |
Net investment income (loss) | $ | (55,592) | | $ | (158,271) | |
Net realized gain (loss) | 8,830,879 | | 1,906,839 | |
Change in net unrealized appreciation (depreciation) | 1,718,599 | | 11,333,298 | |
Net increase (decrease) in net assets resulting from operations | 10,493,886 | | 13,081,866 | |
| | |
Distributions to Shareholders | | |
From earnings: | | |
Investor Class | (1,491,067) | | (752,595) | |
I Class | (85,407) | | (27,255) | |
A Class | (4,280) | | (33,528) | |
C Class | (3,236) | | (30,545) | |
R Class | (60,372) | | (27,101) | |
R6 Class | (1,339,898) | | (10,074) | |
Decrease in net assets from distributions | (2,984,260) | | (881,098) | |
| | |
Capital Share Transactions | | |
Net increase (decrease) in net assets from capital share transactions (Note 5) | 3,012,734 | | 18,080,718 | |
| | |
| | |
| | |
| | |
Net increase (decrease) in net assets | 10,522,360 | | 30,281,486 | |
| | |
Net Assets | | |
Beginning of period | 47,839,168 | | 17,557,682 | |
End of period | $ | 58,361,528 | | $ | 47,839,168 | |
| | |
| | |
See Notes to Financial Statements.
| | |
Notes to Financial Statements |
MAY 28, 2021 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Global Small Cap Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital growth.
The fund offers the Investor Class, I Class, A Class, C Class, R Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value (NAV) per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported NAV per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 28, 2021.
| | | | | | | | | | | | | | | | | |
Remaining Contractual Maturity of Agreements |
| Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total |
Securities Lending Transactions(1) | | | | |
Common Stocks | $ | 242,108 | | — | | — | | — | | $ | 242,108 | |
Exchange-Traded Funds | 97,992 | | — | | — | | — | | 97,992 | |
Total Borrowings | $ | 340,100 | | — | | — | | — | | $ | 340,100 | |
Gross amount of recognized liabilities for securities lending transactions | $ | 340,100 | |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class.
The annual management fee for each class is as follows:
| | | | | | | | | | | | | | | | | |
Investor Class | I Class | A Class | C Class | R Class | R6 Class |
1.10% | 0.90% | 1.10% | 1.10% | 1.10% | 0.75% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 28, 2021 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases were $40,741 and there were no interfund sales.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 28, 2021 were $37,833,055 and $38,448,657, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
| | | | | | | | | | | | | | |
| Six months ended May 28, 2021 | Year ended November 30, 2020 |
| Shares | Amount | Shares | Amount |
Investor Class/Shares Authorized | 40,000,000 | | | 40,000,000 | | |
Sold | 289,604 | | $ | 6,651,615 | | 507,419 | | $ | 8,327,857 | |
Issued in reinvestment of distributions | 66,964 | | 1,466,380 | | 47,962 | | 739,577 | |
Redeemed | (78,948) | | (1,816,831) | | (482,942) | | (7,711,302) | |
| 277,620 | | 6,301,164 | | 72,439 | | 1,356,132 | |
I Class/Shares Authorized | 25,000,000 | | | 25,000,000 | | |
Sold | 292,581 | | 6,888,766 | | 21,302 | | 404,684 | |
Issued in reinvestment of distributions | 3,813 | | 85,407 | | 1,753 | | 27,255 | |
Redeemed | (12,816) | | (303,713) | | (30,455) | | (549,600) | |
| 283,578 | | 6,670,460 | | (7,400) | | (117,661) | |
A Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | 1,009 | | 23,282 | | 2,004 | | 32,714 | |
Issued in reinvestment of distributions | 198 | | 4,280 | | 2,196 | | 33,528 | |
Redeemed | (483) | | (11,039) | | (44,016) | | (783,257) | |
| 724 | | 16,523 | | (39,816) | | (717,015) | |
C Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | 431 | | 9,338 | | 1,400 | | 20,980 | |
Issued in reinvestment of distributions | 156 | | 3,236 | | 2,062 | | 30,545 | |
Redeemed | — | | — | | (40,331) | | (711,043) | |
| 587 | | 12,574 | | (36,869) | | (659,518) | |
R Class/Shares Authorized | 20,000,000 | | | 20,000,000 | | |
Sold | 27,863 | | 634,949 | | 25,240 | | 399,452 | |
Issued in reinvestment of distributions | 2,528 | | 53,905 | | 1,794 | | 27,101 | |
Redeemed | (6,846) | | (156,445) | | (20,014) | | (329,670) | |
| 23,545 | | 532,409 | | 7,020 | | 96,883 | |
R6 Class/Shares Authorized | 20,000,000 | | | 20,000,000 | | |
Sold | 45,827 | | 1,058,979 | | 2,037,224 | | 31,243,617 | |
Issued in reinvestment of distributions | 60,208 | | 1,339,898 | | 644 | | 10,074 | |
Redeemed | (547,186) | | (12,919,273) | | (899,244) | | (13,131,794) | |
| (441,151) | | (10,520,396) | | 1,138,624 | | 18,121,897 | |
Net increase (decrease) | 144,903 | | $ | 3,012,734 | | 1,133,998 | | $ | 18,080,718 | |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
| | | | | | | | | | | |
| Level 1 | Level 2 | Level 3 |
Assets | | | |
Investment Securities | | | |
Common Stocks | | | |
Australia | — | | $ | 990,533 | | — | |
Belgium | — | | 875,794 | | — | |
Brazil | — | | 638,035 | | — | |
Canada | — | | 3,716,760 | | — | |
China | $ | 253,176 | | 687,017 | | — | |
Denmark | — | | 865,532 | | — | |
Finland | — | | 773,629 | | — | |
France | — | | 1,019,113 | | — | |
Germany | — | | 666,523 | | — | |
Japan | — | | 3,669,552 | | — | |
Netherlands | — | | 730,212 | | — | |
Norway | — | | 633,171 | | — | |
South Korea | — | | 456,511 | | — | |
Sweden | — | | 1,483,468 | | — | |
Switzerland | — | | 231,979 | | — | |
Taiwan | — | | 864,784 | | — | |
United Kingdom | — | | 3,531,739 | | — | |
Other Countries | 34,386,558 | | — | | — | |
Exchange-Traded Funds | 883,428 | | — | | — | |
Temporary Cash Investments | 392,086 | | 517,459 | | — | |
Temporary Cash Investments - Securities Lending Collateral | 340,100 | | — | | — | |
| $ | 36,255,348 | | $ | 22,351,811 | | — | |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
The fund’s investment process may result in high portfolio turnover, which could mean high transaction costs, affecting both performance and capital gains tax liabilities to investors.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
| | | | | |
Federal tax cost of investments | $ | 43,263,085 | |
Gross tax appreciation of investments | $ | 15,945,838 | |
Gross tax depreciation of investments | (601,764) | |
Net tax appreciation (depreciation) of investments | $ | 15,344,074 | |
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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For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | | | | |
Per-Share Data | | Ratios and Supplemental Data | | |
| | Income From Investment Operations: | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Realized Gains | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
Investor Class | | | | | | | | | |
2021(3) | $21.11 | (0.04) | 4.53 | 4.49 | (1.36) | $24.24 | 22.05% | 1.11%(4) | (0.34)%(4) | 71% | $31,486 | |
2020 | $15.81 | (0.11) | 6.19 | 6.08 | (0.78) | $21.11 | 40.28% | 1.39% | (0.63)% | 204% | $21,562 | |
2019 | $13.66 | (0.06) | 2.44 | 2.38 | (0.23) | $15.81 | 17.93% | 1.51% | (0.39)% | 161% | $15,005 | |
2018 | $14.80 | (0.13) | (0.24) | (0.37) | (0.77) | $13.66 | (2.73)% | 1.50% | (0.86)% | 147% | $15,159 | |
2017 | $10.85 | (0.06) | 4.01 | 3.95 | — | $14.80 | 36.41% | 1.51% | (0.44)% | 130% | $10,059 | |
2016(5) | $10.00 | (0.03) | 0.88 | 0.85 | — | $10.85 | 8.50% | 1.50%(4) | (0.40)%(4) | 95% | $2,357 | |
I Class | | | | | | | | | | | |
2021(3) | $21.33 | —(6) | 4.56 | 4.56 | (1.36) | $24.53 | 22.16% | 0.91%(4) | (0.14)%(4) | 71% | $7,631 | |
2020 | $15.94 | (0.08) | 6.25 | 6.17 | (0.78) | $21.33 | 40.62% | 1.19% | (0.43)% | 204% | $587 | |
2019 | $13.74 | (0.02) | 2.45 | 2.43 | (0.23) | $15.94 | 18.12% | 1.31% | (0.19)% | 161% | $557 | |
2018 | $14.85 | (0.10) | (0.24) | (0.34) | (0.77) | $13.74 | (2.50)% | 1.30% | (0.66)% | 147% | $1,424 | |
2017 | $10.86 | (0.02) | 4.01 | 3.99 | — | $14.85 | 36.74% | 1.31% | (0.24)% | 130% | $891 | |
2016(5) | $10.00 | (0.01) | 0.87 | 0.86 | — | $10.86 | 8.60% | 1.30%(4) | (0.20)%(4) | 95% | $652 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | | | | |
Per-Share Data | | Ratios and Supplemental Data | | |
| | Income From Investment Operations: | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Realized Gains | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
A Class | | | | | | | | | | | |
2021(3) | $20.85 | (0.06) | 4.46 | 4.40 | (1.36) | $23.89 | 21.88% | 1.36%(4) | (0.59)%(4) | 71% | $89 | |
2020 | $15.66 | (0.15) | 6.12 | 5.97 | (0.78) | $20.85 | 39.95% | 1.64% | (0.88)% | 204% | $63 | |
2019 | $13.57 | (0.08) | 2.40 | 2.32 | (0.23) | $15.66 | 17.60% | 1.76% | (0.64)% | 161% | $671 | |
2018 | $14.74 | (0.17) | (0.23) | (0.40) | (0.77) | $13.57 | (2.95)% | 1.75% | (1.11)% | 147% | $1,477 | |
2017 | $10.83 | (0.08) | 3.99 | 3.91 | — | $14.74 | 36.10% | 1.76% | (0.69)% | 130% | $1,517 | |
2016(5) | $10.00 | (0.05) | 0.88 | 0.83 | — | $10.83 | 8.30% | 1.75%(4) | (0.65)%(4) | 95% | $1,083 | |
C Class | | | | | | | | | | | |
2021(3) | $20.08 | (0.15) | 4.29 | 4.14 | (1.36) | $22.86 | 21.40% | 2.11%(4) | (1.34)%(4) | 71% | $65 | |
2020 | $15.22 | (0.26) | 5.90 | 5.64 | (0.78) | $20.08 | 38.88% | 2.39% | (1.63)% | 204% | $45 | |
2019 | $13.29 | (0.18) | 2.34 | 2.16 | (0.23) | $15.22 | 16.75% | 2.51% | (1.39)% | 161% | $595 | |
2018 | $14.56 | (0.28) | (0.22) | (0.50) | (0.77) | $13.29 | (3.71)% | 2.50% | (1.86)% | 147% | $1,407 | |
2017 | $10.78 | (0.17) | 3.95 | 3.78 | — | $14.56 | 35.06% | 2.51% | (1.44)% | 130% | $1,468 | |
2016(5) | $10.00 | (0.10) | 0.88 | 0.78 | — | $10.78 | 7.80% | 2.50%(4) | (1.40)%(4) | 95% | $1,078 | |
R Class | | | | | | | | | | | |
2021(3) | $20.59 | (0.09) | 4.41 | 4.32 | (1.36) | $23.55 | 21.76% | 1.61%(4) | (0.84)%(4) | 71% | $1,514 | |
2020 | $15.52 | (0.18) | 6.03 | 5.85 | (0.78) | $20.59 | 39.52% | 1.89% | (1.13)% | 204% | $839 | |
2019 | $13.48 | (0.12) | 2.39 | 2.27 | (0.23) | $15.52 | 17.34% | 2.01% | (0.89)% | 161% | $523 | |
2018 | $14.68 | (0.21) | (0.22) | (0.43) | (0.77) | $13.48 | (3.18)% | 2.00% | (1.36)% | 147% | $493 | |
2017 | $10.81 | (0.11) | 3.98 | 3.87 | — | $14.68 | 35.80% | 2.01% | (0.94)% | 130% | $338 | |
2016(5) | $10.00 | (0.06) | 0.87 | 0.81 | — | $10.81 | 8.10% | 2.00%(4) | (0.90)%(4) | 95% | $218 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | | | | |
Per-Share Data | | Ratios and Supplemental Data | | |
| | Income From Investment Operations: | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Realized Gains | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
R6 Class | | | | | | | | | | | |
2021(3) | $21.49 | —(6) | 4.61 | 4.61 | (1.36) | $24.74 | 22.23% | 0.76%(4) | 0.01%(4) | 71% | $17,577 | |
2020 | $16.03 | (0.03) | 6.27 | 6.24 | (0.78) | $21.49 | 40.75% | 1.04% | (0.28)% | 204% | $24,743 | |
2019 | $13.79 | —(6) | 2.47 | 2.47 | (0.23) | $16.03 | 18.34% | 1.16% | (0.04)% | 161% | $207 | |
2018 | $14.89 | (0.08) | (0.25) | (0.33) | (0.77) | $13.79 | (2.36)% | 1.15% | (0.51)% | 147% | $361 | |
2017 | $10.87 | (0.01) | 4.03 | 4.02 | — | $14.89 | 36.86% | 1.16% | (0.09)% | 130% | $366 | |
2016(5) | $10.00 | —(6) | 0.87 | 0.87 | — | $10.87 | 8.80% | 1.15%(4) | (0.05)%(4) | 95% | $217 | |
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Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)Six months ended May 28, 2021 (unaudited).
(4)Annualized.
(5)March 29, 2016 (fund inception) through November 30, 2016.
(6)Per-share amount was less than $0.005.
See Notes to Financial Statements.
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Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2019 through December 31, 2020. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century Investments’ website at americancentury.com/proxy and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
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American Century World Mutual Funds, Inc. | |
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Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |
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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. | |
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©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92638 2107 | |
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| Semiannual Report |
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| May 28, 2021 |
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| International Growth Fund |
| Investor Class (TWIEX) |
| I Class (TGRIX) |
| Y Class (ATYGX) |
| A Class (TWGAX) |
| C Class (AIWCX) |
| R Class (ATGRX) |
| R5 Class (ATGGX) |
| R6 Class (ATGDX) |
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President’s Letter | |
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Fund Characteristics | |
Shareholder Fee Example | |
Schedule of Investments | |
Statement of Assets and Liabilities | |
Statement of Operations | |
Statement of Changes in Net Assets | |
Notes to Financial Statements | |
Financial Highlights | |
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Liquidity Risk Management Program | |
Additional Information | |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 28, 2021. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Government Support, Vaccines Aided Market Outlook
Broad market sentiment was upbeat to start the period. Investors generally looked beyond periodic upswings in virus cases, COVID-19 lockdowns and restrictions in some regions, and uncertainty surrounding the U.S. political climate. Ongoing support from global central banks and governments helped maintain investor confidence in the financial markets and strengthen the economic backdrop.
In the U.S., improving manufacturing, employment and housing data, along with positive vaccine developments and a late-2020 federal coronavirus aid package helped sustain the upbeat tone into early 2021. Election results gave Democrats control of the White House and Congress, setting the stage for another federal aid bill in March and proposals for significant government spending down the road.
Outside the U.S., economic data improved, albeit at a slower pace. In addition, expanding worldwide vaccine distributions and ongoing reopenings helped bolster economic and earnings outlooks. This improving backdrop combined with massive monetary and fiscal support helped fuel robust gains for stocks and other riskier assets for the six-month period. Economic gains and monetary support, along with supply chain disruptions, helped push inflation higher, particularly in the U.S., where prices increased at the fastest rate in nearly 13 years. However, policymakers insisted the pricing pressures were temporary and maintained their generally upbeat outlooks.
Reopenings Will Shape Market Dynamics
The return to pre-pandemic life is progressing, and as economies throughout the world reopen and rebuild, investors likely will face renewed opportunities and challenges. Global growth data, the virus’s trajectory, supply chain normalization, and the effects of fiscal and monetary policy likely will be among the factors swaying market dynamics.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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MAY 28, 2021 | |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 99.9% |
Temporary Cash Investments | 0.6% |
Temporary Cash Investments - Securities Lending Collateral | 0.9% |
Other Assets and Liabilities | (1.4)% |
| |
Top Five Countries | % of net assets |
France | 16.4% |
Japan | 11.9% |
United Kingdom | 11.6% |
Netherlands | 6.2% |
Germany | 6.0% |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2020 to May 28, 2021.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | | | | | | | | | |
| Beginning Account Value 12/1/20 | Ending Account Value 5/28/21 | Expenses Paid During Period(1) 12/1/20 - 5/28/21 | Annualized Expense Ratio(1) |
Actual | | | | |
Investor Class | $1,000 | $1,124.00 | $6.20 | 1.19% |
I Class | $1,000 | $1,125.80 | $5.16 | 0.99% |
Y Class | $1,000 | $1,126.00 | $4.38 | 0.84% |
A Class | $1,000 | $1,122.30 | $7.49 | 1.44% |
C Class | $1,000 | $1,118.50 | $11.38 | 2.19% |
R Class | $1,000 | $1,121.30 | $8.79 | 1.69% |
R5 Class | $1,000 | $1,125.00 | $5.16 | 0.99% |
R6 Class | $1,000 | $1,126.10 | $4.38 | 0.84% |
Hypothetical | | | | |
Investor Class | $1,000 | $1,018.69 | $5.89 | 1.19% |
I Class | $1,000 | $1,019.67 | $4.90 | 0.99% |
Y Class | $1,000 | $1,020.40 | $4.16 | 0.84% |
A Class | $1,000 | $1,017.46 | $7.12 | 1.44% |
C Class | $1,000 | $1,013.78 | $10.81 | 2.19% |
R Class | $1,000 | $1,016.23 | $8.36 | 1.69% |
R5 Class | $1,000 | $1,019.67 | $4.90 | 0.99% |
R6 Class | $1,000 | $1,020.40 | $4.16 | 0.84% |
(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 179, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
MAY 28, 2021 (UNAUDITED)
| | | | | | | | |
| Shares | Value |
COMMON STOCKS — 99.9% | | |
Australia — 2.2% | | |
Atlassian Corp. plc, Class A(1) | 38,310 | | $ | 8,936,956 | |
CSL Ltd. | 121,130 | | 27,053,658 | |
| | 35,990,614 | |
Belgium — 1.5% | | |
KBC Group NV | 303,020 | | 24,806,348 | |
Brazil — 0.6% | | |
Magazine Luiza SA | 2,509,324 | | 9,778,838 | |
Canada — 4.8% | | |
Canada Goose Holdings, Inc.(1)(2) | 287,910 | | 11,627,937 | |
Canadian Pacific Railway Ltd. | 241,850 | | 19,639,489 | |
First Quantum Minerals Ltd. | 709,140 | | 17,639,714 | |
GFL Environmental, Inc.(2) | 330,710 | | 10,761,303 | |
Shopify, Inc., Class A(1) | 6,580 | | 8,183,373 | |
Toronto-Dominion Bank (The) | 169,350 | | 12,205,873 | |
| | 80,057,689 | |
China — 3.1% | | |
ANTA Sports Products Ltd. | 497,000 | | 10,032,561 | |
GDS Holdings Ltd., ADR(1) | 106,000 | | 7,973,320 | |
Huazhu Group Ltd., ADR(1) | 167,630 | | 9,583,407 | |
Tencent Holdings Ltd. | 86,200 | | 6,739,193 | |
Tencent Music Entertainment Group, ADR(1) | 359,830 | | 5,663,724 | |
Wuxi Biologics Cayman, Inc.(1) | 834,500 | | 12,384,965 | |
| | 52,377,170 | |
Denmark — 3.9% | | |
Carlsberg A/S, B Shares | 114,980 | | 21,118,001 | |
DSV Panalpina A/S | 54,462 | | 13,277,259 | |
Novo Nordisk A/S, B Shares | 289,840 | | 22,881,682 | |
Orsted AS | 45,230 | | 6,916,979 | |
| | 64,193,921 | |
Finland — 1.3% | | |
Neste Oyj | 324,490 | | 21,402,320 | |
France — 16.4% | | |
Air Liquide SA | 131,120 | | 22,299,065 | |
Airbus SE(1) | 115,930 | | 15,231,587 | |
Capgemini SE | 132,370 | | 24,749,187 | |
Dassault Systemes SE | 68,510 | | 15,735,783 | |
Edenred(2) | 356,891 | | 19,654,839 | |
Iliad SA | 44,160 | | 7,250,528 | |
L'Oreal SA | 22,440 | | 10,159,027 | |
LVMH Moet Hennessy Louis Vuitton SE | 52,210 | | 41,821,895 | |
Pernod Ricard SA | 67,610 | | 14,926,563 | |
Safran SA | 176,120 | | 26,631,065 | |
Schneider Electric SE | 184,760 | | 29,406,336 | |
Teleperformance | 56,640 | | 21,701,350 | |
Valeo SA | 396,040 | | 13,013,222 | |
Vivendi SE | 270,410 | | 9,848,199 | |
| | 272,428,646 | |
| | | | | | | | |
| Shares | Value |
Germany — 6.0% | | |
Brenntag SE | 76,950 | | $ | 7,226,666 | |
Daimler AG | 228,450 | | 21,313,858 | |
Infineon Technologies AG | 487,989 | | 19,732,785 | |
Knorr-Bremse AG | 77,318 | | 9,611,496 | |
Muenchener Rueckversicherungs-Gesellschaft AG | 47,890 | | 13,784,607 | |
Puma SE | 187,450 | | 21,424,436 | |
Zalando SE(1) | 60,930 | | 6,508,054 | |
| | 99,601,902 | |
Hong Kong — 3.6% | | |
AIA Group Ltd. | 2,320,200 | | 30,966,104 | |
Sands China Ltd.(1) | 1,603,200 | | 7,326,462 | |
Techtronic Industries Co. Ltd. | 1,131,000 | | 21,290,100 | |
| | 59,582,666 | |
India — 1.2% | | |
HDFC Bank Ltd.(1) | 941,160 | | 19,523,861 | |
Indonesia — 0.5% | | |
Bank Central Asia Tbk PT | 4,003,300 | | 8,878,250 | |
Ireland — 4.4% | | |
CRH plc | 386,990 | | 20,246,123 | |
ICON plc(1) | 68,400 | | 15,305,184 | |
Kerry Group plc, A Shares | 128,760 | | 17,421,524 | |
Ryanair Holdings plc, ADR(1) | 171,610 | | 20,035,467 | |
| | 73,008,298 | |
Israel — 0.3% | | |
Kornit Digital Ltd.(1) | 56,040 | | 5,839,368 | |
Italy — 2.8% | | |
Ferrari NV | 70,130 | | 14,787,511 | |
Prysmian SpA | 180,570 | | 6,234,136 | |
Stellantis NV | 1,287,792 | | 25,194,290 | |
| | 46,215,937 | |
Japan — 11.9% | | |
FANUC Corp. | 82,700 | | 19,826,526 | |
Hoya Corp. | 140,000 | | 18,396,180 | |
Keyence Corp. | 58,000 | | 28,670,291 | |
Kobe Bussan Co. Ltd. | 265,200 | | 6,735,739 | |
MonotaRO Co. Ltd. | 540,600 | | 12,594,900 | |
Obic Co. Ltd. | 84,200 | | 15,773,092 | |
Olympus Corp. | 554,700 | | 11,817,412 | |
Pan Pacific International Holdings Corp. | 599,400 | | 11,986,799 | |
Recruit Holdings Co. Ltd. | 680,100 | | 34,859,219 | |
Sony Group Corp. | 254,100 | | 25,266,823 | |
Terumo Corp. | 337,200 | | 13,018,026 | |
| | 198,945,007 | |
Mexico — 1.0% | | |
Cemex SAB de CV, ADR(1) | 2,048,420 | | 16,960,918 | |
Netherlands — 6.2% | | |
Adyen NV(1) | 11,318 | | 26,195,083 | |
Akzo Nobel NV | 38,540 | | 4,920,569 | |
ASML Holding NV | 71,190 | | 48,095,248 | |
ING Groep NV | 1,716,150 | | 24,014,257 | |
| | 103,225,157 | |
| | | | | | | | |
| Shares | Value |
Singapore — 1.0% | | |
Sea Ltd., ADR(1) | 62,910 | | $ | 15,931,328 | |
Spain — 5.3% | | |
Amadeus IT Group SA(1) | 298,943 | | 22,557,143 | |
CaixaBank SA | 4,539,990 | | 15,739,699 | |
Cellnex Telecom SA | 406,914 | | 24,685,729 | |
Iberdrola SA | 1,835,544 | | 25,301,121 | |
| | 88,283,692 | |
Sweden — 3.4% | | |
Epiroc AB, A Shares | 559,170 | | 12,755,083 | |
Epiroc AB(1) | 559,170 | | 201,672 | |
Hexagon AB, B Shares | 1,451,310 | | 20,771,324 | |
Telefonaktiebolaget LM Ericsson, B Shares | 1,727,650 | | 23,172,222 | |
| | 56,900,301 | |
Switzerland — 5.7% | | |
Lonza Group AG | 35,810 | | 23,149,690 | |
Partners Group Holding AG | 15,290 | | 23,078,039 | |
Sika AG | 70,183 | | 22,596,121 | |
Zur Rose Group AG(1) | 29,300 | | 10,999,072 | |
Zurich Insurance Group AG | 36,330 | | 15,280,426 | |
| | 95,103,348 | |
Taiwan — 0.8% | | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 660,000 | | 14,013,234 | |
Thailand — 0.4% | | |
Kasikornbank PCL, NVDR | 1,586,000 | | 6,061,929 | |
United Kingdom — 11.6% | | |
Ashtead Group plc | 399,020 | | 29,107,556 | |
ASOS plc(1) | 324,074 | | 22,411,651 | |
Associated British Foods plc(1) | 403,090 | | 13,240,566 | |
AstraZeneca plc | 313,610 | | 35,743,258 | |
Barratt Developments plc | 862,660 | | 9,232,912 | |
Burberry Group plc(1) | 165,830 | | 5,017,715 | |
Carnival plc(1) | 356,670 | | 8,932,277 | |
Ferguson plc | 25,290 | | 3,434,637 | |
Halma plc | 223,020 | | 8,231,972 | |
HSBC Holdings plc | 4,978,400 | | 32,322,563 | |
Ocado Group plc(1) | 169,409 | | 4,532,527 | |
Whitbread plc(1) | 461,040 | | 20,764,720 | |
| | 192,972,354 | |
TOTAL COMMON STOCKS (Cost $1,049,608,651) | | 1,662,083,096 | |
TEMPORARY CASH INVESTMENTS — 0.6% | | |
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.75%, 5/15/25 - 8/15/47, valued at $2,190,549), in a joint trading account at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $2,143,826) | | 2,143,826 | |
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.25%, 8/15/46, valued at $3,644,469), at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $3,573,000) | | 3,573,000 | |
State Street Institutional U.S. Government Money Market Fund, Premier Class | 4,322,581 | | 4,322,581 | |
TOTAL TEMPORARY CASH INVESTMENTS (Cost $10,039,407) | | 10,039,407 | |
| | | | | | | | |
| Shares | Value |
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 0.9% |
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $15,472,470) | 15,472,470 | | $ | 15,472,470 | |
TOTAL INVESTMENT SECURITIES — 101.4% (Cost $1,075,120,528) | | 1,687,594,973 | |
OTHER ASSETS AND LIABILITIES — (1.4)% | | (23,626,642) | |
TOTAL NET ASSETS — 100.0% | | $ | 1,663,968,331 | |
| | | | | |
MARKET SECTOR DIVERSIFICATION | |
(as a % of net assets) | |
Industrials | 19.3% |
Information Technology | 18.9% |
Consumer Discretionary | 18.0% |
Financials | 13.5% |
Health Care | 10.8% |
Materials | 6.2% |
Consumer Staples | 5.8% |
Communication Services | 4.2% |
Utilities | 1.9% |
Energy | 1.3% |
Temporary Cash Investments | 0.6% |
Temporary Cash Investments - Securities Lending Collateral | 0.9% |
Other Assets and Liabilities | (1.4)% |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS |
ADR | - | American Depositary Receipt |
NVDR | - | Non-Voting Depositary Receipt |
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $14,886,315. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $15,472,470.
See Notes to Financial Statements.
| | |
Statement of Assets and Liabilities |
| | | | | |
MAY 28, 2021 (UNAUDITED) | |
Assets | |
Investment securities, at value (cost of $1,059,648,058) — including $14,886,315 of securities on loan | $ | 1,672,122,503 | |
Investment made with cash collateral received for securities on loan, at value (cost of $15,472,470) | 15,472,470 | |
Total investment securities, at value (cost of $1,075,120,528) | 1,687,594,973 | |
Receivable for investments sold | 9,428,931 | |
Receivable for capital shares sold | 224,499 | |
Dividends and interest receivable | 4,356,101 | |
Securities lending receivable | 7,828 | |
Other assets | 66,335 | |
| 1,701,678,667 | |
| |
Liabilities | |
Payable for collateral received for securities on loan | 15,472,470 | |
Payable for investments purchased | 16,452,145 | |
Payable for capital shares redeemed | 3,296,502 | |
Accrued management fees | 1,599,249 | |
Distribution and service fees payable | 23,855 | |
Accrued foreign taxes | 845,609 | |
Accrued other expenses | 20,506 | |
| 37,710,336 | |
| |
Net Assets | $ | 1,663,968,331 | |
| |
Net Assets Consist of: | |
Capital (par value and paid-in surplus) | $ | 942,481,984 | |
Distributable earnings | 721,486,347 | |
| $ | 1,663,968,331 | |
| | | | | | | | | | | |
| Net Assets | Shares Outstanding | Net Asset Value Per Share |
Investor Class, $0.01 Par Value | $1,384,922,995 | 84,069,075 | $16.47 |
I Class, $0.01 Par Value | $87,522,054 | 5,354,532 | $16.35 |
Y Class, $0.01 Par Value | $37,922,055 | 2,319,285 | $16.35 |
A Class, $0.01 Par Value | $92,960,150 | 5,612,303 | $16.56* |
C Class, $0.01 Par Value | $1,704,384 | 108,478 | $15.71 |
R Class, $0.01 Par Value | $7,691,909 | 461,282 | $16.68 |
R5 Class, $0.01 Par Value | $8,945 | 547 | $16.35 |
R6 Class, $0.01 Par Value | $51,235,839 | 3,135,547 | $16.34 |
*Maximum offering price $17.57 (net asset value divided by 0.9425).
See Notes to Financial Statements.
| | | | | |
FOR THE SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) | |
Investment Income (Loss) | |
Income: | |
Dividends (net of foreign taxes withheld of $1,320,666) | $ | 12,475,363 | |
Interest | 226,405 | |
Securities lending, net | 22,766 | |
| 12,724,534 | |
| |
Expenses: | |
Management fees | 9,050,777 | |
Distribution and service fees: | |
A Class | 109,663 | |
C Class | 8,897 | |
R Class | 17,808 | |
Directors' fees and expenses | 20,236 | |
Other expenses | 65,289 | |
| 9,272,670 | |
| |
Net investment income (loss) | 3,451,864 | |
| |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on: | |
Investment transactions (net of foreign tax expenses paid (refunded) of $9,265) | 110,494,920 | |
Foreign currency translation transactions | (383,614) | |
| 110,111,306 | |
| |
Change in net unrealized appreciation (depreciation) on: | |
Investments (includes (increase) decrease in accrued foreign taxes of $(288)) | 70,650,196 | |
Translation of assets and liabilities in foreign currencies | 35,477 | |
| 70,685,673 | |
| |
Net realized and unrealized gain (loss) | 180,796,979 | |
| |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 184,248,843 | |
See Notes to Financial Statements.
| | |
Statement of Changes in Net Assets |
| | | | | | | | |
SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2020 |
Increase (Decrease) in Net Assets | May 28, 2021 | November 30, 2020 |
Operations | | |
Net investment income (loss) | $ | 3,451,864 | | $ | 1,014,690 | |
Net realized gain (loss) | 110,111,306 | | 63,609,780 | |
Change in net unrealized appreciation (depreciation) | 70,685,673 | | 238,837,670 | |
Net increase (decrease) in net assets resulting from operations | 184,248,843 | | 303,462,140 | |
| | |
Distributions to Shareholders | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
From earnings: | | |
Investor Class | (54,887,728) | | (4,906,875) | |
I Class | (3,793,173) | | (471,463) | |
Y Class | (1,442,300) | | (151,818) | |
A Class | (3,664,774) | | (231,840) | |
C Class | (85,443) | | (9,443) | |
R Class | (292,738) | | (19,202) | |
R5 Class | (508) | | (40) | |
R6 Class | (2,636,516) | | (297,497) | |
Decrease in net assets from distributions | (66,803,180) | | (6,088,178) | |
| | |
Capital Share Transactions | | |
Net increase (decrease) in net assets from capital share transactions (Note 5) | 46,993,211 | | (167,936,818) | |
| | |
Net increase (decrease) in net assets | 164,438,874 | | 129,437,144 | |
| | |
Net Assets | | |
Beginning of period | 1,499,529,457 | | 1,370,092,313 | |
End of period | $ | 1,663,968,331 | | $ | 1,499,529,457 | |
| | |
| | |
See Notes to Financial Statements.
| | |
Notes to Financial Statements |
MAY 28, 2021 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. International Growth Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek capital growth.
The fund offers the Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value (NAV) per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported NAV per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 28, 2021.
| | | | | | | | | | | | | | | | | |
Remaining Contractual Maturity of Agreements |
| Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total |
Securities Lending Transactions(1) | | | | |
Common Stocks | $ | 15,472,470 | | — | | — | | — | | $ | 15,472,470 | |
Gross amount of recognized liabilities for securities lending transactions | $ | 15,472,470 | |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 17% of the shares of the fund.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account the fund’s assets as well as certain assets, if any, of other clients of the investment advisor outside the American Century Investments family of funds (such as subadvised funds and separate accounts) that use very similar investment teams and strategies (strategy assets). The strategy assets of the fund also include the assets of NT International Growth Fund, one fund in a series issued by the corporation.
The management fee schedule range and the effective annual management fee for each class for the period ended May 28, 2021 are as follows:
| | | | | | | | |
| Management Fee Schedule Range | Effective Annual Management Fee |
Investor Class | 1.050% to 1.500% | 1.18% |
I Class | 0.850% to 1.300% | 0.98% |
Y Class | 0.700% to 1.150% | 0.83% |
A Class | 1.050% to 1.500% | 1.18% |
C Class | 1.050% to 1.500% | 1.18% |
R Class | 1.050% to 1.500% | 1.18% |
R5 Class | 0.850% to 1.300% | 0.98% |
R6 Class | 0.700% to 1.150% | 0.83% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 28, 2021 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund sales were $30,556 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $(537) in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 28, 2021 were $390,607,804 and $371,280,623, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
| | | | | | | | | | | | | | |
| Six months ended May 28, 2021 | Year ended November 30, 2020 |
| Shares | Amount | Shares | Amount |
Investor Class/Shares Authorized | 1,250,000,000 | | 1,250,000,000 | |
Sold | 2,673,212 | | $ | 42,037,193 | | 3,240,677 | | $ | 38,156,109 | |
Issued in reinvestment of distributions | 3,482,060 | | 52,071,522 | | 379,819 | | 4,748,521 | |
Redeemed | (3,225,894) | | (50,380,963) | | (16,638,244) | | (211,154,875) | |
| 2,929,378 | | 43,727,752 | | (13,017,748) | | (168,250,245) | |
I Class/Shares Authorized | 90,000,000 | | 90,000,000 | |
Sold | 458,584 | | 7,115,320 | | 1,092,403 | | 13,679,290 | |
Issued in reinvestment of distributions | 255,044 | | 3,782,308 | | 36,444 | | 453,353 | |
Redeemed | (759,800) | | (11,891,699) | | (1,813,504) | | (22,006,067) | |
| (46,172) | | (994,071) | | (684,657) | | (7,873,424) | |
Y Class/Shares Authorized | 30,000,000 | | 30,000,000 | |
Sold | 405,174 | | 6,283,076 | | 889,212 | | 11,191,681 | |
Issued in reinvestment of distributions | 96,900 | | 1,437,024 | | 12,036 | | 149,903 | |
Redeemed | (105,226) | | (1,637,988) | | (500,101) | | (6,593,043) | |
| 396,848 | | 6,082,112 | | 401,147 | | 4,748,541 | |
A Class/Shares Authorized | 80,000,000 | | 80,000,000 | |
Sold | 540,284 | | 8,488,884 | | 1,149,517 | | 14,501,908 | |
Issued in reinvestment of distributions | 238,591 | | 3,593,173 | | 18,170 | | 228,255 | |
Redeemed | (425,871) | | (6,676,518) | | (1,359,112) | | (17,240,766) | |
| 353,004 | | 5,405,539 | | (191,425) | | (2,510,603) | |
C Class/Shares Authorized | 30,000,000 | | 30,000,000 | |
Sold | 3,062 | | 45,727 | | 12,823 | | 149,256 | |
Issued in reinvestment of distributions | 5,736 | | 82,198 | | 695 | | 8,410 | |
Redeemed | (26,389) | | (395,008) | | (112,520) | | (1,326,676) | |
| (17,591) | | (267,083) | | (99,002) | | (1,169,010) | |
R Class/Shares Authorized | 30,000,000 | | 30,000,000 | |
Sold | 61,214 | | 978,460 | | 73,216 | | 960,881 | |
Issued in reinvestment of distributions | 19,165 | | 290,918 | | 1,499 | | 19,053 | |
Redeemed | (50,425) | | (809,241) | | (126,035) | | (1,616,452) | |
| 29,954 | | 460,137 | | (51,320) | | (636,518) | |
R5 Class/Shares Authorized | 20,000,000 | | 20,000,000 | |
Sold | 21 | | 313 | | 189 | | 2,856 | |
Issued in reinvestment of distributions | 25 | | 372 | | 3 | | 40 | |
Redeemed | (210) | | (3,192) | | — | | — | |
| (164) | | (2,507) | | 192 | | 2,896 | |
R6 Class/Shares Authorized | 50,000,000 | | 50,000,000 | |
Sold | 1,134,578 | | 17,498,039 | | 1,715,636 | | 21,568,793 | |
Issued in reinvestment of distributions | 176,481 | | 2,615,452 | | 23,795 | | 296,197 | |
Redeemed | (1,795,687) | | (27,532,159) | | (1,139,714) | | (14,113,445) | |
| (484,628) | | (7,418,668) | | 599,717 | | 7,751,545 | |
Net increase (decrease) | 3,160,629 | | $ | 46,993,211 | | (13,043,096) | | $ | (167,936,818) | |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
| | | | | | | | | | | |
| Level 1 | Level 2 | Level 3 |
Assets | | | |
Investment Securities | | | |
Common Stocks | | | |
Australia | $ | 8,936,956 | | $ | 27,053,658 | | — | |
Canada | 10,761,303 | | 69,296,386 | | — | |
China | 23,220,451 | | 29,156,719 | | — | |
Ireland | 35,340,651 | | 37,667,647 | | — | |
Israel | 5,839,368 | | — | | — | |
Mexico | 16,960,918 | | — | | — | |
Singapore | 15,931,328 | | — | | — | |
Other Countries | — | | 1,381,917,711 | | — | |
Temporary Cash Investments | 4,322,581 | | 5,716,826 | | — | |
Temporary Cash Investments - Securities Lending Collateral | 15,472,470 | | — | | — | |
| $ | 136,786,026 | | $ | 1,550,808,947 | | — | |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
| | | | | |
Federal tax cost of investments | $ | 1,078,548,446 | |
Gross tax appreciation of investments | $ | 614,875,876 | |
Gross tax depreciation of investments | (5,829,349) |
Net tax appreciation (depreciation) of investments | $ | 609,046,527 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | | | | | | |
Per-Share Data | | | | | | | Ratios and Supplemental Data | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
Investor Class | | | | | | | | | | | |
2021(3) | $15.32 | 0.03 | 1.80 | 1.83 | —(4) | (0.68) | (0.68) | $16.47 | 12.40% | 1.19%(5) | 0.43%(5) | 24% | $1,384,923 | |
2020 | $12.35 | 0.01 | 3.01 | 3.02 | (0.01) | (0.04) | (0.05) | $15.32 | 24.57% | 1.18% | 0.06% | 51% | $1,243,217 | |
2019 | $11.83 | 0.05 | 1.66 | 1.71 | (0.12) | (1.07) | (1.19) | $12.35 | 16.82% | 1.18% | 0.43% | 68% | $1,162,998 | |
2018 | $13.80 | 0.08 | (1.28) | (1.20) | (0.13) | (0.64) | (0.77) | $11.83 | (9.23)% | 1.17% | 0.62% | 69% | $1,173,094 | |
2017 | $10.56 | 0.10 | 3.19 | 3.29 | (0.05) | — | (0.05) | $13.80 | 31.32% | 1.17% | 0.80% | 57% | $1,357,353 | |
2016 | $12.25 | 0.09 | (1.10) | (1.01) | (0.06) | (0.62) | (0.68) | $10.56 | (8.59)% | 1.18% | 0.83% | 70% | $1,229,531 | |
I Class | | | | | | | | | | | |
2021(3) | $15.22 | 0.05 | 1.79 | 1.84 | (0.03) | (0.68) | (0.71) | $16.35 | 12.58% | 0.99%(5) | 0.63%(5) | 24% | $87,522 | |
2020 | $12.27 | 0.03 | 3.00 | 3.03 | (0.04) | (0.04) | (0.08) | $15.22 | 24.82% | 0.98% | 0.26% | 51% | $82,222 | |
2019 | $11.76 | 0.07 | 1.66 | 1.73 | (0.15) | (1.07) | (1.22) | $12.27 | 17.09% | 0.98% | 0.63% | 68% | $74,688 | |
2018 | $13.74 | 0.10 | (1.28) | (1.18) | (0.16) | (0.64) | (0.80) | $11.76 | (9.12)% | 0.97% | 0.82% | 69% | $67,677 | |
2017 | $10.51 | 0.13 | 3.17 | 3.30 | (0.07) | — | (0.07) | $13.74 | 31.64% | 0.97% | 1.00% | 57% | $90,679 | |
2016 | $12.19 | 0.11 | (1.09) | (0.98) | (0.08) | (0.62) | (0.70) | $10.51 | (8.40)% | 0.98% | 1.03% | 70% | $59,236 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | | | | | | |
Per-Share Data | | | | | | | Ratios and Supplemental Data | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
Y Class | | | | | | | | | | | |
2021(3) | $15.24 | 0.06 | 1.79 | 1.85 | (0.06) | (0.68) | (0.74) | $16.35 | 12.60% | 0.84%(5) | 0.78%(5) | 24% | $37,922 | |
2020 | $12.29 | 0.05 | 2.99 | 3.04 | (0.05) | (0.04) | (0.09) | $15.24 | 24.97% | 0.83% | 0.41% | 51% | $29,299 | |
2019 | $11.78 | 0.08 | 1.66 | 1.74 | (0.16) | (1.07) | (1.23) | $12.29 | 17.27% | 0.83% | 0.78% | 68% | $18,691 | |
2018 | $13.75 | 0.15 | (1.30) | (1.15) | (0.18) | (0.64) | (0.82) | $11.78 | (8.95)% | 0.82% | 0.97% | 69% | $6,177 | |
2017(6) | $11.48 | 0.09 | 2.18 | 2.27 | — | — | — | $13.75 | 19.77% | 0.82%(5) | 1.14%(5) | 57%(7) | $6 | |
A Class | | | | | | | | | | | |
2021(3) | $15.42 | 0.01 | 1.81 | 1.82 | — | (0.68) | (0.68) | $16.56 | 12.23% | 1.44%(5) | 0.18%(5) | 24% | $92,960 | |
2020 | $12.45 | (0.02) | 3.03 | 3.01 | — | (0.04) | (0.04) | $15.42 | 24.27% | 1.43% | (0.19)% | 51% | $81,088 | |
2019 | $11.91 | 0.02 | 1.69 | 1.71 | (0.10) | (1.07) | (1.17) | $12.45 | 16.56% | 1.43% | 0.18% | 68% | $67,857 | |
2018 | $13.88 | 0.05 | (1.29) | (1.24) | (0.09) | (0.64) | (0.73) | $11.91 | (9.45)% | 1.42% | 0.37% | 69% | $64,784 | |
2017 | $10.63 | 0.06 | 3.22 | 3.28 | (0.03) | — | (0.03) | $13.88 | 30.88% | 1.42% | 0.55% | 57% | $77,983 | |
2016 | $12.32 | 0.06 | (1.09) | (1.03) | (0.04) | (0.62) | (0.66) | $10.63 | (8.73)% | 1.43% | 0.58% | 70% | $108,847 | |
C Class | | | | | | | | | | | |
2021(3) | $14.71 | (0.05) | 1.73 | 1.68 | — | (0.68) | (0.68) | $15.71 | 11.85% | 2.19%(5) | (0.57)%(5) | 24% | $1,704 | |
2020 | $11.97 | (0.11) | 2.89 | 2.78 | — | (0.04) | (0.04) | $14.71 | 23.32% | 2.18% | (0.94)% | 51% | $1,855 | |
2019 | $11.49 | (0.06) | 1.62 | 1.56 | (0.01) | (1.07) | (1.08) | $11.97 | 15.66% | 2.18% | (0.57)% | 68% | $2,694 | |
2018 | $13.42 | (0.04) | (1.25) | (1.29) | — | (0.64) | (0.64) | $11.49 | (10.12)% | 2.17% | (0.38)% | 69% | $4,268 | |
2017 | $10.33 | (0.03) | 3.12 | 3.09 | — | — | — | $13.42 | 29.91% | 2.17% | (0.20)% | 57% | $6,743 | |
2016 | $12.04 | (0.02) | (1.07) | (1.09) | — | (0.62) | (0.62) | $10.33 | (9.43)% | 2.18% | (0.17)% | 70% | $6,743 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | | | | | | |
Per-Share Data | | | | | | | Ratios and Supplemental Data | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
R Class | | | | | | | | | | | |
2021(3) | $15.54 | (0.01) | 1.83 | 1.82 | — | (0.68) | (0.68) | $16.68 | 12.13% | 1.69%(5) | (0.07)%(5) | 24% | $7,692 | |
2020 | $12.58 | (0.06) | 3.06 | 3.00 | — | (0.04) | (0.04) | $15.54 | 24.04% | 1.68% | (0.44)% | 51% | $6,701 | |
2019 | $12.02 | (0.01) | 1.71 | 1.70 | (0.07) | (1.07) | (1.14) | $12.58 | 16.17% | 1.68% | (0.07)% | 68% | $6,069 | |
2018 | $14.00 | 0.02 | (1.30) | (1.28) | (0.06) | (0.64) | (0.70) | $12.02 | (9.68)% | 1.67% | 0.12% | 69% | $3,226 | |
2017 | $10.72 | 0.03 | 3.25 | 3.28 | — | — | — | $14.00 | 30.60% | 1.67% | 0.30% | 57% | $3,609 | |
2016 | $12.43 | 0.04 | (1.12) | (1.08) | (0.01) | (0.62) | (0.63) | $10.72 | (9.00)% | 1.68% | 0.33% | 70% | $3,090 | |
R5 Class | | | | | | | | | | | | |
2021(3) | $15.23 | 0.04 | 1.79 | 1.83 | (0.03) | (0.68) | (0.71) | $16.35 | 12.50% | 0.99%(5) | 0.63%(5) | 24% | $9 | |
2020 | $12.28 | 0.03 | 3.00 | 3.03 | (0.04) | (0.04) | (0.08) | $15.23 | 24.80% | 0.98% | 0.26% | 51% | $11 | |
2019 | $11.77 | 0.07 | 1.66 | 1.73 | (0.15) | (1.07) | (1.22) | $12.28 | 17.09% | 0.98% | 0.63% | 68% | $6 | |
2018 | $13.73 | 0.11 | (1.27) | (1.16) | (0.16) | (0.64) | (0.80) | $11.77 | (9.03)% | 0.97% | 0.82% | 69% | $5 | |
2017(6) | $11.48 | 0.08 | 2.17 | 2.25 | — | — | — | $13.73 | 19.60% | 0.97%(5) | 0.99%(5) | 57%(7) | $6 | |
R6 Class | | | | | | | | | | | | |
2021(3) | $15.23 | 0.06 | 1.79 | 1.85 | (0.06) | (0.68) | (0.74) | $16.34 | 12.61% | 0.84%(5) | 0.78%(5) | 24% | $51,236 | |
2020 | $12.28 | 0.05 | 2.99 | 3.04 | (0.05) | (0.04) | (0.09) | $15.23 | 24.99% | 0.83% | 0.41% | 51% | $55,137 | |
2019 | $11.77 | 0.09 | 1.65 | 1.74 | (0.16) | (1.07) | (1.23) | $12.28 | 17.28% | 0.83% | 0.78% | 68% | $37,088 | |
2018 | $13.75 | 0.14 | (1.29) | (1.15) | (0.19) | (0.64) | (0.83) | $11.77 | (8.93)% | 0.82% | 0.97% | 69% | $38,315 | |
2017 | $10.53 | 0.15 | 3.16 | 3.31 | (0.09) | — | (0.09) | $13.75 | 31.68% | 0.82% | 1.15% | 57% | $29,846 | |
2016 | $12.20 | 0.14 | (1.10) | (0.96) | (0.09) | (0.62) | (0.71) | $10.53 | (8.19)% | 0.83% | 1.18% | 70% | $37,903 | |
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Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)Six months ended May 28, 2021 (unaudited).
(4)Per-share amount was less than $0.005.
(5)Annualized.
(6)April 10, 2017 (commencement of sale) through November 30, 2017.
(7)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2017.
See Notes to Financial Statements.
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Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2019 through December 31, 2020. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century Investments’ website at americancentury.com/proxy and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
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American Century World Mutual Funds, Inc. | |
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Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |
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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. | |
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©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92630 2107 | |
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| |
| Semiannual Report |
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| May 28, 2021 |
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| International Opportunities Fund |
| Investor Class (AIOIX) |
| I Class (ACIOX) |
| A Class (AIVOX) |
| C Class (AIOCX) |
| R Class (AIORX) |
| | | | | |
President’s Letter | |
| |
| |
Fund Characteristics | |
Shareholder Fee Example | |
Schedule of Investments | |
Statement of Assets and Liabilities | |
Statement of Operations | |
Statement of Changes in Net Assets | |
Notes to Financial Statements | |
Financial Highlights | |
| |
| |
| |
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Liquidity Risk Management Program | |
Additional Information | |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 28, 2021. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Government Support, Vaccines Aided Market Outlook
Broad market sentiment was upbeat to start the period. Investors generally looked beyond periodic upswings in virus cases, COVID-19 lockdowns and restrictions in some regions, and uncertainty surrounding the U.S. political climate. Ongoing support from global central banks and governments helped maintain investor confidence in the financial markets and strengthen the economic backdrop.
In the U.S., improving manufacturing, employment and housing data, along with positive vaccine developments and a late-2020 federal coronavirus aid package helped sustain the upbeat tone into early 2021. Election results gave Democrats control of the White House and Congress, setting the stage for another federal aid bill in March and proposals for significant government spending down the road.
Outside the U.S., economic data improved, albeit at a slower pace. In addition, expanding worldwide vaccine distributions and ongoing reopenings helped bolster economic and earnings outlooks. This improving backdrop combined with massive monetary and fiscal support helped fuel robust gains for stocks and other riskier assets for the six-month period. Economic gains and monetary support, along with supply chain disruptions, helped push inflation higher, particularly in the U.S., where prices increased at the fastest rate in nearly 13 years. However, policymakers insisted the pricing pressures were temporary and maintained their generally upbeat outlooks.
Reopenings Will Shape Market Dynamics
The return to pre-pandemic life is progressing, and as economies throughout the world reopen and rebuild, investors likely will face renewed opportunities and challenges. Global growth data, the virus’s trajectory, supply chain normalization, and the effects of fiscal and monetary policy likely will be among the factors swaying market dynamics.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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MAY 28, 2021 | |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 99.3% |
Temporary Cash Investments | 0.5% |
Temporary Cash Investments - Securities Lending Collateral | 1.4% |
Other Assets and Liabilities | (1.2)% |
| |
Top Five Countries | % of net assets |
Japan | 18.0% |
United Kingdom | 14.4% |
Canada | 11.8% |
Taiwan | 6.8% |
Sweden | 5.9% |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2020 to May 28, 2021.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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| Beginning Account Value 12/1/20 | Ending Account Value 5/28/21 | Expenses Paid During Period(1) 12/1/20 - 5/28/21 | Annualized Expense Ratio(1) |
Actual | | | | |
Investor Class | $1,000 | $1,132.80 | $7.11 | 1.36% |
I Class | $1,000 | $1,133.50 | $6.07 | 1.16% |
A Class | $1,000 | $1,131.70 | $8.42 | 1.61% |
C Class | $1,000 | $1,128.20 | $12.32 | 2.36% |
R Class | $1,000 | $1,129.90 | $9.71 | 1.86% |
Hypothetical | | | | |
Investor Class | $1,000 | $1,017.85 | $6.73 | 1.36% |
I Class | $1,000 | $1,018.83 | $5.74 | 1.16% |
A Class | $1,000 | $1,016.63 | $7.96 | 1.61% |
C Class | $1,000 | $1,012.95 | $11.65 | 2.36% |
R Class | $1,000 | $1,015.40 | $9.19 | 1.86% |
(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 179, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
MAY 28, 2021 (UNAUDITED)
| | | | | | | | |
| Shares | Value |
COMMON STOCKS — 99.3% | | |
Australia — 4.4% | | |
carsales.com Ltd. | 267,007 | | $ | 4,006,100 | |
Corporate Travel Management Ltd.(1)(2) | 250,292 | | 4,167,181 | |
IDP Education Ltd. | 130,673 | | 2,264,908 | |
Mineral Resources Ltd. | 182,751 | | 6,466,603 | |
Nickel Mines Ltd. | 5,845,768 | | 4,587,944 | |
OZ Minerals Ltd. | 209,883 | | 4,108,496 | |
Seven Group Holdings Ltd.(2) | 438,534 | | 6,896,606 | |
| | 32,497,838 | |
Austria — 1.1% | | |
ANDRITZ AG | 135,736 | | 7,925,626 | |
Brazil — 1.8% | | |
Banco Pan SA, Preference Shares | 693,800 | | 3,037,880 | |
Locaweb Servicos de Internet SA | 797,852 | | 4,021,638 | |
Pet Center Comercio e Participacoes SA | 970,348 | | 4,300,907 | |
Randon SA Implementos e Participacoes, Preference Shares | 686,500 | | 1,953,450 | |
| | 13,313,875 | |
Canada — 11.8% | | |
Alamos Gold, Inc. (New York), Class A | 782,487 | | 7,144,106 | |
Boralex, Inc., A Shares(2) | 117,391 | | 3,578,917 | |
BRP, Inc. | 97,867 | | 8,248,680 | |
CAE, Inc.(1) | 305,068 | | 9,452,171 | |
Descartes Systems Group, Inc. (The)(1) | 62,715 | | 3,668,260 | |
Finning International, Inc. | 260,399 | | 6,466,595 | |
FirstService Corp. | 30,938 | | 5,019,278 | |
goeasy Ltd.(2) | 41,906 | | 5,059,732 | |
Nuvei Corp.(1) | 98,173 | | 7,308,980 | |
Parex Resources, Inc.(1) | 435,371 | | 7,431,273 | |
Stantec, Inc. | 122,231 | | 5,467,790 | |
TFI International, Inc. | 146,226 | | 14,016,780 | |
Whitecap Resources, Inc.(2) | 1,131,156 | | 5,365,278 | |
| | 88,227,840 | |
China — 4.7% | | |
21Vianet Group, Inc., ADR(1) | 229,389 | | 5,119,962 | |
China Lesso Group Holdings Ltd. | 3,080,000 | | 7,804,246 | |
China Yongda Automobiles Services Holdings Ltd. | 6,096,500 | | 10,753,273 | |
Daqo New Energy Corp., ADR(1) | 74,053 | | 5,508,062 | |
Kingsoft Cloud Holdings Ltd., ADR(1) | 59,529 | | 2,325,203 | |
Minth Group Ltd. | 896,000 | | 3,789,474 | |
| | 35,300,220 | |
Denmark — 2.5% | | |
ALK-Abello A/S(1) | 19,336 | | 8,614,469 | |
Jyske Bank A/S(1) | 56,580 | | 2,920,170 | |
Royal Unibrew A/S | 53,683 | | 6,936,410 | |
| | 18,471,049 | |
Finland — 2.1% | | |
Metso Outotec Oyj | 940,155 | | 11,144,109 | |
| | | | | | | | |
| Shares | Value |
QT Group Oyj(1) | 34,207 | | $ | 4,575,514 | |
| | 15,719,623 | |
France — 3.9% | | |
Alten SA(1) | 43,284 | | 5,300,981 | |
APERAM SA | 161,465 | | 8,901,941 | |
Elis SA(1) | 391,249 | | 7,453,031 | |
SOITEC(1) | 35,335 | | 7,139,000 | |
| | 28,794,953 | |
Germany — 3.7% | | |
Dermapharm Holding SE | 84,878 | | 7,251,234 | |
Eckert & Ziegler Strahlen- und Medizintechnik AG | 24,166 | | 2,615,221 | |
flatexDEGIRO AG(1) | 53,573 | | 6,741,662 | |
ProSiebenSat.1 Media SE(1) | 323,429 | | 7,261,749 | |
SMA Solar Technology AG(1) | 64,342 | | 3,583,915 | |
| | 27,453,781 | |
Hong Kong — 0.5% | | |
Man Wah Holdings Ltd. | 1,735,200 | | 3,907,158 | |
India — 1.6% | | |
Ashok Leyland Ltd.(1) | 3,167,969 | | 5,440,391 | |
Indraprastha Gas Ltd. | 906,814 | | 6,423,336 | |
| | 11,863,727 | |
Indonesia — 0.3% | | |
Bank Tabungan Negara Persero Tbk PT(1) | 16,775,800 | | 1,865,281 | |
Israel — 3.1% | | |
Inmode Ltd.(1) | 85,917 | | 7,333,875 | |
Kornit Digital Ltd.(1) | 69,378 | | 7,229,188 | |
Nova Measuring Instruments Ltd.(1) | 87,987 | | 8,818,057 | |
| | 23,381,120 | |
Italy — 2.7% | | |
Autogrill SpA(1)(2) | 645,614 | | 5,535,517 | |
BPER Banca | 3,055,127 | | 7,582,672 | |
Buzzi Unicem SpA | 122,179 | | 3,464,018 | |
Technogym SpA | 283,689 | | 3,596,380 | |
| | 20,178,587 | |
Japan — 18.0% | | |
Asics Corp. | 202,300 | | 4,831,067 | |
ASKUL Corp. | 217,700 | | 3,506,381 | |
CKD Corp. | 318,900 | | 7,237,668 | |
en-japan, Inc. | 162,800 | | 5,558,360 | |
Food & Life Cos. Ltd. | 148,400 | | 6,597,172 | |
Hennge KK(1) | 49,100 | | 2,221,269 | |
IHI Corp.(1) | 438,200 | | 10,768,396 | |
IR Japan Holdings Ltd. | 49,400 | | 6,288,515 | |
Isetan Mitsukoshi Holdings Ltd. | 877,600 | | 6,333,100 | |
Japan Steel Works Ltd. (The) | 231,400 | | 6,144,563 | |
JMDC, Inc.(1) | 107,100 | | 4,725,161 | |
Kakaku.com, Inc. | 145,000 | | 4,315,626 | |
Kuraray Co. Ltd. | 357,900 | | 3,786,009 | |
Mabuchi Motor Co. Ltd. | 86,100 | | 3,399,782 | |
Matsumotokiyoshi Holdings Co. Ltd. | 152,500 | | 6,609,703 | |
Menicon Co. Ltd. | 29,200 | | 1,841,829 | |
Nextage Co. Ltd. | 381,900 | | 5,775,459 | |
| | | | | | | | |
| Shares | Value |
Nippon Gas Co. Ltd. | 439,500 | | $ | 6,814,730 | |
Open House Co. Ltd. | 211,200 | | 9,783,498 | |
Optorun Co. Ltd. | 129,100 | | 3,192,998 | |
Premier Anti-Aging Co. Ltd.(1) | 36,600 | | 5,543,199 | |
Ryohin Keikaku Co. Ltd. | 293,600 | | 5,643,903 | |
Toyo Tire Corp. | 321,300 | | 6,531,113 | |
Zeon Corp. | 465,100 | | 7,069,401 | |
| | 134,518,902 | |
Mexico — 1.2% | | |
Controladora Vuela Cia de Aviacion SAB de CV, ADR(1) | 300,013 | | 5,175,224 | |
Grupo Aeroportuario del Centro Norte SAB de CV(1) | 628,631 | | 4,022,128 | |
| | 9,197,352 | |
Netherlands — 3.4% | | |
Alfen Beheer BV(1) | 43,108 | | 3,729,750 | |
ASM International NV | 17,099 | | 5,347,862 | |
Basic-Fit NV(1) | 108,472 | | 5,218,737 | |
BE Semiconductor Industries NV | 85,462 | | 6,856,829 | |
OCI NV(1) | 170,507 | | 4,400,083 | |
| | 25,553,261 | |
Norway — 1.2% | | |
Bakkafrost P/F | 97,762 | | 8,718,313 | |
Panama — 0.3% | | |
Copa Holdings SA, Class A(1) | 30,727 | | 2,527,603 | |
South Korea — 2.0% | | |
Hugel, Inc.(1) | 23,082 | | 4,152,687 | |
SK Materials Co. Ltd. | 28,589 | | 8,244,600 | |
Soulbrain Co. Ltd. | 8,612 | | 2,533,856 | |
| | 14,931,143 | |
Sweden — 5.9% | | |
AddTech AB, B Shares | 220,298 | | 3,634,387 | |
BHG Group AB(1) | 205,616 | | 3,994,487 | |
CELLINK AB, Class B(1) | 122,606 | | 6,487,578 | |
Desenio Group AB(1) | 356,541 | | 4,150,934 | |
Lifco AB, B Shares | 325,455 | | 7,259,397 | |
Nordic Entertainment Group AB, B Shares(1) | 124,447 | | 5,998,265 | |
Stillfront Group AB(1) | 281,716 | | 2,951,558 | |
Storytel AB(1) | 67,305 | | 1,824,353 | |
Trelleborg AB, B Shares | 309,355 | | 7,937,966 | |
| | 44,238,925 | |
Switzerland — 1.9% | | |
Cembra Money Bank AG | 10,177 | | 1,157,740 | |
Comet Holding AG | 20,759 | | 5,562,136 | |
SIG Combibloc Group AG(1) | 164,235 | | 4,344,255 | |
Zur Rose Group AG(1) | 7,718 | | 2,897,298 | |
| | 13,961,429 | |
Taiwan — 6.8% | | |
Accton Technology Corp. | 502,000 | | 5,308,845 | |
Advanced Wireless Semiconductor Co. | 961,000 | | 4,894,054 | |
Airtac International Group | 250,000 | | 9,050,760 | |
ASPEED Technology, Inc. | 50,000 | | 3,967,752 | |
Chailease Holding Co. Ltd. | 1,005,297 | | 7,592,799 | |
Gourmet Master Co. Ltd. | 1,128,000 | | 6,707,690 | |
| | | | | | | | |
| Shares | Value |
Merida Industry Co. Ltd. | 612,000 | | $ | 7,079,354 | |
Nien Made Enterprise Co. Ltd. | 407,000 | | 5,979,818 | |
| | 50,581,072 | |
United Kingdom — 14.4% | | |
ASOS plc(1) | 82,071 | | 5,675,699 | |
Dr. Martens plc(1) | 885,025 | | 6,148,367 | |
Electrocomponents plc | 646,880 | | 9,072,083 | |
Endava plc, ADR(1) | 76,692 | | 7,867,065 | |
Fevertree Drinks plc | 137,942 | | 5,003,480 | |
Future plc | 234,574 | | 9,437,246 | |
Greggs plc(1) | 205,681 | | 7,276,715 | |
Hays plc(1) | 1,893,074 | | 4,653,457 | |
Howden Joinery Group plc | 842,762 | | 9,519,747 | |
Intermediate Capital Group plc | 430,455 | | 12,805,549 | |
IWG plc(1) | 1,401,687 | | 7,155,185 | |
Marks & Spencer Group plc(1) | 2,145,513 | | 5,016,491 | |
S4 Capital plc(1) | 678,892 | | 5,351,466 | |
Weir Group plc (The)(1) | 247,811 | | 6,752,931 | |
WH Smith plc(1) | 240,422 | | 5,888,671 | |
| | 107,624,152 | |
TOTAL COMMON STOCKS (Cost $572,239,943) | | 740,752,830 | |
TEMPORARY CASH INVESTMENTS — 0.5% | | |
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.75%, 5/15/25 - 8/15/47, valued at $777,169), in a joint trading account at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $760,592) | | 760,592 | |
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.375%, 11/15/48, valued at $1,292,461), at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $1,267,000) | | 1,267,000 | |
State Street Institutional U.S. Government Money Market Fund, Premier Class | 1,533,577 | | 1,533,577 | |
TOTAL TEMPORARY CASH INVESTMENTS (Cost $3,561,169) | | 3,561,169 | |
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 1.4% |
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $10,329,450) | 10,329,450 | 10,329,450 | |
TOTAL INVESTMENT SECURITIES — 101.2% (Cost $586,130,562) | | 754,643,449 | |
OTHER ASSETS AND LIABILITIES — (1.2)% | | (8,626,091) | |
TOTAL NET ASSETS — 100.0% | | $ | 746,017,358 | |
| | | | | |
MARKET SECTOR DIVERSIFICATION |
(as a % of net assets) | |
Industrials | 27.2% |
Consumer Discretionary | 21.4% |
Information Technology | 13.6% |
Materials | 8.8% |
Financials | 6.6% |
Health Care | 5.8% |
Communication Services | 5.5% |
Consumer Staples | 4.8% |
Utilities | 2.3% |
Energy | 1.7% |
Real Estate | 1.6% |
Temporary Cash Investments | 0.5% |
Temporary Cash Investments - Securities Lending Collateral | 1.4% |
Other Assets and Liabilities | (1.2)% |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS |
ADR | - | American Depositary Receipt |
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $22,164,331. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $23,355,319, which includes securities collateral of $13,025,869.
See Notes to Financial Statements.
| | |
Statement of Assets and Liabilities |
| | | | | |
MAY 28, 2021 (UNAUDITED) | |
Assets | |
Investment securities, at value (cost of $575,801,112) — including $22,164,331 of securities on loan | $ | 744,313,999 | |
Investment made with cash collateral received for securities on loan, at value (cost of $10,329,450) | 10,329,450 | |
Total investment securities, at value (cost of $586,130,562) | 754,643,449 | |
Foreign currency holdings, at value (cost of $2,478,134) | 2,478,772 | |
Receivable for investments sold | 2,474,956 | |
Receivable for capital shares sold | 207,243 | |
Dividends and interest receivable | 2,086,753 | |
Securities lending receivable | 11,135 | |
Other assets | 153,929 | |
| 762,056,237 | |
| |
Liabilities | |
Payable for collateral received for securities on loan | 10,329,450 | |
Payable for investments purchased | 4,730,546 | |
Payable for capital shares redeemed | 156,486 | |
Accrued management fees | 819,055 | |
Distribution and service fees payable | 3,342 | |
| 16,038,879 | |
| |
Net Assets | $ | 746,017,358 | |
| |
Net Assets Consist of: | |
Capital (par value and paid-in surplus) | $ | 494,699,018 | |
Distributable earnings | 251,318,340 | |
| $ | 746,017,358 | |
| | | | | | | | | | | |
| Net Assets | Shares Outstanding | Net Asset Value Per Share |
Investor Class, $0.01 Par Value | $611,962,722 | 43,084,132 | $14.20 |
I Class, $0.01 Par Value | $122,757,917 | 8,528,446 | $14.39 |
A Class, $0.01 Par Value | $8,316,372 | 592,058 | $14.05* |
C Class, $0.01 Par Value | $874,308 | 65,604 | $13.33 |
R Class, $0.01 Par Value | $2,106,039 | 151,824 | $13.87 |
*Maximum offering price $14.91 (net asset value divided by 0.9425).
See Notes to Financial Statements.
| | | | | |
FOR THE SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) | |
Investment Income (Loss) | |
Income: | |
Dividends (net of foreign taxes withheld of $425,767) | $ | 3,756,509 | |
Securities lending, net | 47,088 | |
Interest | 613 | |
| 3,804,210 | |
| |
Expenses: | |
Management fees | 4,746,214 | |
Distribution and service fees: | |
A Class | 10,087 | |
C Class | 4,772 | |
R Class | 4,321 | |
Directors' fees and expenses | 9,237 | |
Other expenses | 38,084 | |
| 4,812,715 | |
| |
Net investment income (loss) | (1,008,505) | |
| |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on: | |
Investment transactions | 95,803,210 | |
Foreign currency translation transactions | (291,135) | |
| 95,512,075 | |
| |
Change in net unrealized appreciation (depreciation) on: | |
Investments | (6,218,549) | |
Translation of assets and liabilities in foreign currencies | 28,089 | |
| (6,190,460) | |
| |
Net realized and unrealized gain (loss) | 89,321,615 | |
| |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 88,313,110 | |
See Notes to Financial Statements.
| | |
Statement of Changes in Net Assets |
| | | | | | | | |
SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2020 |
Increase (Decrease) in Net Assets | May 28, 2021 | November 30, 2020 |
Operations | | |
Net investment income (loss) | $ | (1,008,505) | | $ | (579,609) | |
Net realized gain (loss) | 95,512,075 | | 63,923,408 | |
Change in net unrealized appreciation (depreciation) | (6,190,460) | | 83,177,979 | |
Net increase (decrease) in net assets resulting from operations | 88,313,110 | | 146,521,778 | |
| | |
Distributions to Shareholders | | |
From earnings: | | |
Investor Class | (18,706,813) | | (4,749,297) | |
I Class | (3,151,509) | | (906,124) | |
A Class | (240,368) | | (42,373) | |
C Class | (34,163) | | — | |
R Class | (47,944) | | (8,828) | |
Decrease in net assets from distributions | (22,180,797) | | (5,706,622) | |
| | |
Capital Share Transactions | | |
Net increase (decrease) in net assets from capital share transactions (Note 5) | 10,323,349 | | (58,197,577) | |
| | |
Net increase (decrease) in net assets | 76,455,662 | | 82,617,579 | |
| | |
Net Assets | | |
Beginning of period | 669,561,696 | | 586,944,117 | |
End of period | $ | 746,017,358 | | $ | 669,561,696 | |
See Notes to Financial Statements.
| | |
Notes to Financial Statements |
MAY 28, 2021 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. International Opportunities Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek capital growth.
The fund offers the Investor Class, I Class, A Class, C Class and R Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value (NAV) per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported NAV per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 28, 2021.
| | | | | | | | | | | | | | | | | |
Remaining Contractual Maturity of Agreements |
| Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total |
Securities Lending Transactions(1) | | | | |
Common Stocks | $ | 10,329,450 | | — | | — | | — | | $ | 10,329,450 | |
Gross amount of recognized liabilities for securities lending transactions | $ | 10,329,450 | |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account the fund’s assets as well as certain assets, if any, of other clients of the investment advisor outside the American Century Investments family of funds (such as subadvised funds and separate accounts) that use very similar investment teams and strategies (strategy assets).
The management fee schedule range and the effective annual management fee for each class for the period ended May 28, 2021 are as follows:
| | | | | | | | |
| Management Fee Schedule Range | Effective Annual Management Fee |
Investor Class | 1.200% to 1.550% | 1.35% |
I Class | 1.000% to 1.350% | 1.15% |
A Class | 1.200% to 1.550% | 1.35% |
C Class | 1.200% to 1.550% | 1.35% |
R Class | 1.200% to 1.550% | 1.35% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 28, 2021 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund sales were $269,346 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $130,463 in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 28, 2021 were $434,964,455 and $445,147,600, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
| | | | | | | | | | | | | | |
| Six months ended May 28, 2021 | Year ended November 30, 2020 |
| Shares | Amount | Shares | Amount |
Investor Class/Shares Authorized | 670,000,000 | | | 670,000,000 | | |
Sold | 1,345,628 | | $ | 18,334,834 | | 2,429,434 | | $ | 26,155,762 | |
Issued in reinvestment of distributions | 1,354,944 | | 17,560,071 | | 424,410 | | 4,426,599 | |
Redeemed | (3,257,308) | | (44,366,699) | | (8,317,924) | | (84,020,321) | |
| (556,736) | | (8,471,794) | | (5,464,080) | | (53,437,960) | |
I Class/Shares Authorized | 95,000,000 | | | 95,000,000 | | |
Sold | 1,802,620 | | 25,220,866 | | 2,092,097 | | 23,001,037 | |
Issued in reinvestment of distributions | 239,553 | | 3,142,937 | | 83,972 | | 885,061 | |
Redeemed | (749,193) | | (10,331,710) | | (2,578,345) | | (27,119,055) | |
| 1,292,980 | | 18,032,093 | | (402,276) | | (3,232,957) | |
A Class/Shares Authorized | 40,000,000 | | | 40,000,000 | | |
Sold | 62,887 | | 864,560 | | 106,306 | | 1,177,267 | |
Issued in reinvestment of distributions | 18,060 | | 231,706 | | 4,036 | | 41,817 | |
Redeemed | (51,313) | | (701,102) | | (150,485) | | (1,530,563) | |
| 29,634 | | 395,164 | | (40,143) | | (311,479) | |
C Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | 1,443 | | 18,654 | | 11,523 | | 126,662 | |
Issued in reinvestment of distributions | 2,798 | | 34,163 | | — | | — | |
Redeemed | (18,814) | | (241,237) | | (39,923) | | (427,777) | |
| (14,573) | | (188,420) | | (28,400) | | (301,115) | |
R Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | 64,145 | | 858,726 | | 51,608 | | 543,660 | |
Issued in reinvestment of distributions | 3,781 | | 47,944 | | 859 | | 8,819 | |
Redeemed | (26,319) | | (350,364) | | (139,258) | | (1,466,545) | |
| 41,607 | | 556,306 | | (86,791) | | (914,066) | |
Net increase (decrease) | 792,912 | | $ | 10,323,349 | | (6,021,690) | | $ | (58,197,577) | |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
| | | | | | | | | | | |
| Level 1 | Level 2 | Level 3 |
Assets | | | |
Investment Securities | | | |
Common Stocks | | | |
Canada | $ | 7,144,106 | | $ | 81,083,734 | | — | |
China | 12,953,227 | | 22,346,993 | | — | |
Israel | 23,381,120 | | — | | — | |
Mexico | 5,175,224 | | 4,022,128 | | — | |
Panama | 2,527,603 | | — | | — | |
United Kingdom | 7,867,065 | | 99,757,087 | | — | |
Other Countries | — | | 474,494,543 | | — | |
Temporary Cash Investments | 1,533,577 | | 2,027,592 | | — | |
Temporary Cash Investments - Securities Lending Collateral | 10,329,450 | | — | | — | |
| $ | 70,911,372 | | $ | 683,732,077 | | — | |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
The fund’s investment process may result in high portfolio turnover, which could mean high transaction costs, affecting both performance and capital gains tax liabilities to investors.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
| | | | | |
Federal tax cost of investments | $ | 590,640,230 | |
Gross tax appreciation of investments | $ | 179,250,631 | |
Gross tax depreciation of investments | (15,247,412) | |
Net tax appreciation (depreciation) of investments | $ | 164,003,219 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2020, the fund had late-year ordinary loss deferrals of $(501,171), which represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) |
Per-Share Data | | | | | | Ratios and Supplemental Data | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
Investor Class | | | | | | | | | | | | |
2021(3) | $12.95 | (0.02) | 1.70 | 1.68 | — | (0.43) | (0.43) | $14.20 | 13.28% | 1.36%(4) | 1.36%(4) | (0.30)%(4) | (0.30)%(4) | 61% | $611,963 | |
2020 | $10.17 | (0.01) | 2.89 | 2.88 | (0.10) | — | (0.10) | $12.95 | 28.52% | 1.40% | 1.40% | (0.12)% | (0.12)% | 131% | $565,150 | |
2019 | $9.33 | 0.01 | 1.13 | 1.14 | (0.05) | (0.25) | (0.30) | $10.17 | 12.88% | 1.46% | 1.46% | 0.23% | 0.23% | 124% | $499,296 | |
2018 | $11.94 | 0.01 | (1.51) | (1.50) | (0.06) | (1.05) | (1.11) | $9.33 | (13.98)% | 1.48% | 1.62% | 0.07% | (0.07)% | 140% | $131,043 | |
2017 | $8.49 | (0.01) | 3.46 | 3.45 | —(5) | — | —(5) | $11.94 | 40.69% | 1.53% | 1.73% | (0.11)% | (0.31)% | 124% | $163,540 | |
2016 | $9.08 | (0.01) | (0.36) | (0.37) | (0.08) | (0.14) | (0.22) | $8.49 | (4.14)% | 1.54% | 1.74% | (0.07)% | (0.27)% | 130% | $108,184 | |
I Class | | | | | | | | | | | |
2021(3) | $13.10 | (0.01) | 1.73 | 1.72 | — | (0.43) | (0.43) | $14.39 | 13.35% | 1.16%(4) | 1.16%(4) | (0.10)%(4) | (0.10)%(4) | 61% | $122,758 | |
2020 | $10.29 | 0.01 | 2.92 | 2.93 | (0.12) | — | (0.12) | $13.10 | 28.84% | 1.20% | 1.20% | 0.08% | 0.08% | 131% | $94,818 | |
2019 | $9.44 | 0.03 | 1.14 | 1.17 | (0.07) | (0.25) | (0.32) | $10.29 | 13.06% | 1.26% | 1.26% | 0.43% | 0.43% | 124% | $78,575 | |
2018 | $12.07 | 0.04 | (1.54) | (1.50) | (0.08) | (1.05) | (1.13) | $9.44 | (13.81)% | 1.28% | 1.42% | 0.27% | 0.13% | 140% | $53,224 | |
2017 | $8.58 | 0.02 | 3.49 | 3.51 | (0.02) | — | (0.02) | $12.07 | 41.01% | 1.33% | 1.53% | 0.09% | (0.11)% | 124% | $10,529 | |
2016 | $9.18 | 0.01 | (0.38) | (0.37) | (0.09) | (0.14) | (0.23) | $8.58 | (4.05)% | 1.34% | 1.54% | 0.13% | (0.07)% | 130% | $6,674 | |
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For a Share Outstanding Throughout the Years Ended November 30 (except as noted) |
Per-Share Data | | | | | | Ratios and Supplemental Data | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
A Class | | | | | | | | | | | | | |
2021(3) | $12.83 | (0.04) | 1.69 | 1.65 | — | (0.43) | (0.43) | $14.05 | 13.17% | 1.61%(4) | 1.61%(4) | (0.55)%(4) | (0.55)%(4) | 61% | $8,316 | |
2020 | $10.07 | (0.04) | 2.87 | 2.83 | (0.07) | — | (0.07) | $12.83 | 28.28% | 1.65% | 1.65% | (0.37)% | (0.37)% | 131% | $7,214 | |
2019 | $9.24 | (0.02) | 1.13 | 1.11 | (0.03) | (0.25) | (0.28) | $10.07 | 12.60% | 1.71% | 1.71% | (0.02)% | (0.02)% | 124% | $6,067 | |
2018 | $11.84 | (0.02) | (1.50) | (1.52) | (0.03) | (1.05) | (1.08) | $9.24 | (14.25)% | 1.73% | 1.87% | (0.18)% | (0.32)% | 140% | $8,131 | |
2017 | $8.43 | (0.03) | 3.44 | 3.41 | — | — | — | $11.84 | 40.45% | 1.78% | 1.98% | (0.36)% | (0.56)% | 124% | $12,855 | |
2016 | $9.03 | (0.03) | (0.37) | (0.40) | (0.06) | (0.14) | (0.20) | $8.43 | (4.47)% | 1.79% | 1.99% | (0.32)% | (0.52)% | 130% | $14,156 | |
C Class | | | | | | | | | | | | | |
2021(3) | $12.23 | (0.09) | 1.62 | 1.53 | — | (0.43) | (0.43) | $13.33 | 12.82% | 2.36%(4) | 2.36%(4) | (1.30)%(4) | (1.30)%(4) | 61% | $874 | |
2020 | $9.61 | (0.11) | 2.73 | 2.62 | — | — | — | $12.23 | 27.26% | 2.40% | 2.40% | (1.12)% | (1.12)% | 131% | $981 | |
2019 | $8.86 | (0.07) | 1.07 | 1.00 | — | (0.25) | (0.25) | $9.61 | 11.77% | 2.46% | 2.46% | (0.77)% | (0.77)% | 124% | $1,044 | |
2018 | $11.44 | (0.10) | (1.43) | (1.53) | — | (1.05) | (1.05) | $8.86 | (14.93)% | 2.48% | 2.62% | (0.93)% | (1.07)% | 140% | $1,411 | |
2017 | $8.21 | (0.11) | 3.34 | 3.23 | — | — | — | $11.44 | 39.46% | 2.53% | 2.73% | (1.11)% | (1.31)% | 124% | $2,453 | |
2016 | $8.81 | (0.09) | (0.36) | (0.45) | (0.01) | (0.14) | (0.15) | $8.21 | (5.17)% | 2.54% | 2.74% | (1.07)% | (1.27)% | 130% | $1,579 | |
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For a Share Outstanding Throughout the Years Ended November 30 (except as noted) |
Per-Share Data | | | | | | Ratios and Supplemental Data | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
R Class | | | | | | | | | | | | | |
2021(3) | $12.69 | (0.05) | 1.66 | 1.61 | — | (0.43) | (0.43) | $13.87 | 12.99% | 1.86%(4) | 1.86%(4) | (0.80)%(4) | (0.80)%(4) | 61% | $2,106 | |
2020 | $9.96 | (0.07) | 2.84 | 2.77 | (0.04) | — | (0.04) | $12.69 | 27.96% | 1.90% | 1.90% | (0.62)% | (0.62)% | 131% | $1,398 | |
2019 | $9.14 | (0.04) | 1.12 | 1.08 | (0.01) | (0.25) | (0.26) | $9.96 | 12.33% | 1.96% | 1.96% | (0.27)% | (0.27)% | 124% | $1,962 | |
2018 | $11.72 | (0.05) | (1.48) | (1.53) | —(5) | (1.05) | (1.05) | $9.14 | (14.46)% | 1.98% | 2.12% | (0.43)% | (0.57)% | 140% | $1,300 | |
2017 | $8.37 | (0.06) | 3.41 | 3.35 | — | — | — | $11.72 | 40.02% | 2.03% | 2.23% | (0.61)% | (0.81)% | 124% | $939 | |
2016 | $8.97 | (0.05) | (0.37) | (0.42) | (0.04) | (0.14) | (0.18) | $8.37 | (4.69)% | 2.04% | 2.24% | (0.57)% | (0.77)% | 130% | $658 | |
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Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)Six months ended May 28, 2021 (unaudited).
(4)Annualized.
(5)Per-share amount was less than $0.005.
See Notes to Financial Statements.
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Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2019 through December 31, 2020. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century Investments’ website at americancentury.com/proxy and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
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American Century World Mutual Funds, Inc. | |
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Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |
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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. | |
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©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92635 2107 | |
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| |
| Semiannual Report |
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| May 28, 2021 |
| |
| International Value Fund |
| Investor Class (ACEVX) |
| I Class (ACVUX) |
| A Class (MEQAX) |
| C Class (ACCOX) |
| R Class (ACVRX) |
| R6 Class (ACVDX) |
| | | | | |
President’s Letter | |
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| |
Fund Characteristics | |
Shareholder Fee Example | |
Schedule of Investments | |
Statement of Assets and Liabilities | |
Statement of Operations | |
Statement of Changes in Net Assets | |
Notes to Financial Statements | |
Financial Highlights | |
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Liquidity Risk Management Program | |
Additional Information | |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 28, 2021. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Government Support, Vaccines Aided Market Outlook
Broad market sentiment was upbeat to start the period. Investors generally looked beyond periodic upswings in virus cases, COVID-19 lockdowns and restrictions in some regions, and uncertainty surrounding the U.S. political climate. Ongoing support from global central banks and governments helped maintain investor confidence in the financial markets and strengthen the economic backdrop.
In the U.S., improving manufacturing, employment and housing data, along with positive vaccine developments and a late-2020 federal coronavirus aid package helped sustain the upbeat tone into early 2021. Election results gave Democrats control of the White House and Congress, setting the stage for another federal aid bill in March and proposals for significant government spending down the road.
Outside the U.S., economic data improved, albeit at a slower pace. In addition, expanding worldwide vaccine distributions and ongoing reopenings helped bolster economic and earnings outlooks. This improving backdrop combined with massive monetary and fiscal support helped fuel robust gains for stocks and other riskier assets for the six-month period. Economic gains and monetary support, along with supply chain disruptions, helped push inflation higher, particularly in the U.S., where prices increased at the fastest rate in nearly 13 years. However, policymakers insisted the pricing pressures were temporary and maintained their generally upbeat outlooks.
Reopenings Will Shape Market Dynamics
The return to pre-pandemic life is progressing, and as economies throughout the world reopen and rebuild, investors likely will face renewed opportunities and challenges. Global growth data, the virus’s trajectory, supply chain normalization, and the effects of fiscal and monetary policy likely will be among the factors swaying market dynamics.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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MAY 28, 2021 | |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 96.5% |
Warrants | —* |
Temporary Cash Investments | 2.6% |
Temporary Cash Investments - Securities Lending Collateral | 2.7% |
Other Assets and Liabilities | (1.8)% |
*Category is less than 0.05% of total net assets. | |
| |
Top Five Countries | % of net assets |
Japan | 21.6% |
United Kingdom | 16.8% |
France | 12.2% |
Germany | 9.0% |
Switzerland | 5.6% |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2020 to May 28, 2021.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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| Beginning Account Value 12/1/20 | Ending Account Value 5/28/21 | Expenses Paid During Period(1) 12/1/20 - 5/28/21 | Annualized Expense Ratio(1) |
Actual | | | | |
Investor Class | $1,000 | $1,193.60 | $5.92 | 1.10% |
I Class | $1,000 | $1,195.00 | $4.84 | 0.90% |
A Class | $1,000 | $1,193.40 | $7.26 | 1.35% |
C Class | $1,000 | $1,187.80 | $11.27 | 2.10% |
R Class | $1,000 | $1,189.80 | $8.59 | 1.60% |
R6 Class | $1,000 | $1,195.50 | $4.04 | 0.75% |
Hypothetical | | | | |
Investor Class | $1,000 | $1,019.13 | $5.45 | 1.10% |
I Class | $1,000 | $1,020.11 | $4.46 | 0.90% |
A Class | $1,000 | $1,017.90 | $6.68 | 1.35% |
C Class | $1,000 | $1,014.22 | $10.37 | 2.10% |
R Class | $1,000 | $1,016.67 | $7.91 | 1.60% |
R6 Class | $1,000 | $1,020.84 | $3.72 | 0.75% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 179, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
MAY 28, 2021 (UNAUDITED)
| | | | | | | | |
| Shares | Value |
COMMON STOCKS — 96.5% | | |
Australia — 5.0% | | |
Aristocrat Leisure Ltd. | 6,423 | | $ | 207,791 | |
Australia & New Zealand Banking Group Ltd. | 35,047 | | 781,739 | |
BHP Group Ltd. | 4,841 | | 179,313 | |
Commonwealth Bank of Australia | 1,890 | | 146,836 | |
Fortescue Metals Group Ltd. | 30,279 | | 517,114 | |
Magellan Financial Group Ltd. | 2,810 | | 104,716 | |
National Australia Bank Ltd. | 9,905 | | 207,229 | |
Santos Ltd. | 28,027 | | 148,864 | |
Stockland | 39,696 | | 142,980 | |
Wesfarmers Ltd. | 10,789 | | 462,338 | |
Westpac Banking Corp. | 11,193 | | 229,194 | |
Woodside Petroleum Ltd. | 15,494 | | 264,394 | |
| | 3,392,508 | |
Austria — 0.7% | | |
Erste Group Bank AG | 4,528 | | 187,560 | |
voestalpine AG | 5,626 | | 252,539 | |
| | 440,099 | |
Belgium — 1.3% | | |
Ageas SA/NV(1) | 9,887 | | 639,632 | |
Solvay SA | 1,533 | | 207,488 | |
| | 847,120 | |
Canada — 0.3% | | |
Magna International, Inc. | 1,788 | | 179,799 | |
Denmark — 0.3% | | |
Novo Nordisk A/S, B Shares | 2,309 | | 182,286 | |
Finland — 0.8% | | |
Fortum Oyj(1) | 6,699 | | 193,510 | |
Kone Oyj, B Shares | 4,632 | | 376,842 | |
| | 570,352 | |
France — 12.2% | | |
ArcelorMittal SA(2) | 10,928 | | 353,437 | |
AXA SA | 18,186 | | 506,272 | |
BNP Paribas SA(1) | 16,639 | | 1,145,514 | |
Cie de Saint-Gobain(2) | 9,861 | | 661,938 | |
Cie Generale des Etablissements Michelin SCA(1) | 1,703 | | 260,284 | |
Danone SA | 2,253 | | 160,604 | |
Dassault Systemes SE | 584 | | 134,137 | |
Eiffage SA | 2,097 | | 231,383 | |
Hermes International | 220 | | 306,513 | |
Ipsen SA | 1,715 | | 179,021 | |
L'Oreal SA | 397 | | 179,730 | |
Legrand SA | 3,826 | | 401,333 | |
Publicis Groupe SA | 9,152 | | 618,640 | |
Safran SA | 2,148 | | 324,799 | |
Sanofi | 4,340 | | 464,351 | |
Schneider Electric SE | 4,248 | | 676,110 | |
| | | | | | | | |
| Shares | Value |
SCOR SE(2) | 4,533 | | $ | 147,566 | |
TOTAL SE | 28,248 | | 1,317,508 | |
Vinci SA | 1,566 | | 178,012 | |
| | 8,247,152 | |
Germany — 9.0% | | |
Allianz SE | 4,296 | | 1,140,851 | |
BASF SE | 1,796 | | 147,040 | |
Bayerische Motoren Werke AG | 5,883 | | 624,525 | |
Brenntag SE | 8,457 | | 794,229 | |
Daimler AG | 12,869 | | 1,200,648 | |
GEA Group AG | 3,801 | | 165,379 | |
HeidelbergCement AG | 4,807 | | 439,353 | |
Muenchener Rueckversicherungs-Gesellschaft AG | 2,666 | | 767,379 | |
Siemens AG | 3,986 | | 654,252 | |
Volkswagen AG, Preference Shares | 566 | | 155,819 | |
| | 6,089,475 | |
Hong Kong — 3.5% | | |
BOC Hong Kong Holdings Ltd. | 172,500 | | 636,281 | |
CK Asset Holdings Ltd. | 30,000 | | 204,251 | |
CK Hutchison Holdings Ltd. | 23,000 | | 183,365 | |
Hang Seng Bank Ltd. | 25,900 | | 552,107 | |
Hong Kong Exchanges & Clearing Ltd. | 3,200 | | 196,936 | |
Sun Hung Kai Properties Ltd. | 14,000 | | 218,635 | |
Techtronic Industries Co. Ltd. | 6,500 | | 122,357 | |
WH Group Ltd. | 244,000 | | 210,423 | |
| | 2,324,355 | |
Ireland — 0.3% | | |
CRH plc | 3,286 | | 171,914 | |
Israel — 0.5% | | |
Israel Discount Bank Ltd., A Shares(2) | 38,467 | | 197,182 | |
Mizrahi Tefahot Bank Ltd.(2) | 5,197 | | 157,100 | |
| | 354,282 | |
Italy — 1.9% | | |
Enel SpA | 13,317 | | 132,069 | |
Eni SpA | 22,778 | | 279,851 | |
Intesa Sanpaolo SpA | 58,719 | | 172,397 | |
Tenaris SA | 62,778 | | 716,859 | |
| | 1,301,176 | |
Japan — 21.6% | | |
Advantest Corp. | 2,000 | | 175,530 | |
Asahi Group Holdings Ltd. | 3,600 | | 174,022 | |
Astellas Pharma, Inc. | 27,800 | | 443,577 | |
Bridgestone Corp. | 3,600 | | 159,453 | |
Brother Industries Ltd. | 28,400 | | 604,446 | |
Dai Nippon Printing Co. Ltd. | 5,700 | | 123,576 | |
Dai-ichi Life Holdings, Inc. | 10,300 | | 215,477 | |
Daikin Industries Ltd. | 500 | | 99,988 | |
Denso Corp. | 4,900 | | 334,463 | |
ENEOS Holdings, Inc. | 39,600 | | 163,542 | |
FANUC Corp. | 500 | | 119,870 | |
FUJIFILM Holdings Corp. | 2,200 | | 151,470 | |
Fujitsu Ltd. | 800 | | 130,498 | |
Iida Group Holdings Co. Ltd. | 21,900 | | 588,883 | |
| | | | | | | | |
| Shares | Value |
ITOCHU Corp. | 15,000 | | $ | 452,341 | |
Japan Post Insurance Co. Ltd. | 7,100 | | 141,170 | |
Kajima Corp. | 10,100 | | 140,121 | |
KDDI Corp. | 23,600 | | 804,494 | |
Komatsu Ltd. | 6,200 | | 186,901 | |
Lixil Corp. | 10,300 | | 279,299 | |
Mitsubishi Corp. | 10,300 | | 281,627 | |
Mitsubishi Electric Corp. | 45,300 | | 706,245 | |
Mitsubishi UFJ Financial Group, Inc. | 34,300 | | 196,990 | |
Mitsui & Co. Ltd. | 15,500 | | 342,836 | |
MS&AD Insurance Group Holdings, Inc. | 5,100 | | 156,243 | |
Nabtesco Corp. | 3,200 | | 148,693 | |
Nintendo Co. Ltd. | 900 | | 557,294 | |
Nippon Telegraph & Telephone Corp. | 13,600 | | 368,292 | |
Nitto Denko Corp. | 3,100 | | 244,640 | |
NSK Ltd. | 17,300 | | 167,098 | |
ORIX Corp. | 20,200 | | 356,871 | |
Otsuka Holdings Co. Ltd. | 8,000 | | 335,421 | |
Panasonic Corp. | 41,800 | | 474,750 | |
Recruit Holdings Co. Ltd. | 3,900 | | 199,898 | |
Renesas Electronics Corp.(2) | 20,900 | | 219,006 | |
Sekisui House Ltd. | 7,400 | | 155,740 | |
Seven & i Holdings Co. Ltd. | 9,500 | | 418,094 | |
Shin-Etsu Chemical Co. Ltd. | 1,100 | | 190,557 | |
Shionogi & Co. Ltd. | 5,000 | | 255,482 | |
Softbank Corp. | 8,600 | | 110,269 | |
SoftBank Group Corp. | 7,200 | | 548,444 | |
Sony Group Corp. | 5,300 | | 527,014 | |
Sumitomo Mitsui Financial Group, Inc. | 14,500 | | 530,129 | |
Tokyo Electron Ltd. | 400 | | 175,499 | |
Toyota Industries Corp. | 5,100 | | 441,399 | |
Toyota Motor Corp. | 7,900 | | 655,612 | |
Trend Micro, Inc. | 2,800 | | 142,201 | |
Yamaha Motor Co. Ltd. | 6,200 | | 182,006 | |
| | 14,577,471 | |
Netherlands — 3.7% | | |
ING Groep NV | 26,088 | | 365,052 | |
Koninklijke Ahold Delhaize NV | 23,120 | | 673,077 | |
NN Group NV | 9,137 | | 465,055 | |
Randstad NV | 10,595 | | 825,053 | |
Wolters Kluwer NV | 1,915 | | 183,911 | |
| | 2,512,148 | |
Norway — 0.5% | | |
Yara International ASA | 5,775 | | 308,063 | |
Portugal — 0.2% | | |
Jeronimo Martins SGPS SA | 8,293 | | 160,427 | |
Singapore — 3.0% | | |
DBS Group Holdings Ltd. | 33,213 | | 763,122 | |
Oversea-Chinese Banking Corp. Ltd. | 40,972 | | 387,039 | |
Singapore Technologies Engineering Ltd. | 40,900 | | 120,179 | |
United Overseas Bank Ltd. | 36,400 | | 722,760 | |
| | 1,993,100 | |
| | | | | | | | |
| Shares | Value |
South Korea — 0.4% | | |
LG Chem Ltd. | 159 | | $ | 118,493 | |
Samsung Electronics Co. Ltd. | 1,793 | | 128,702 | |
| | 247,195 | |
Spain — 4.0% | | |
Banco Bilbao Vizcaya Argentaria SA(2) | 127,052 | | 793,543 | |
Banco Santander SA(2) | 76,034 | | 320,232 | |
CaixaBank SA(1) | 144,705 | | 501,678 | |
Enagas SA | 8,014 | | 188,241 | |
Endesa SA | 6,681 | | 192,622 | |
Iberdrola SA | 14,729 | | 203,024 | |
Industria de Diseno Textil SA | 6,583 | | 255,851 | |
Naturgy Energy Group SA | 9,433 | | 246,853 | |
| | 2,702,044 | |
Sweden — 3.8% | | |
Atlas Copco AB, A Shares | 2,570 | | 157,357 | |
Husqvarna AB, B Shares | 38,925 | | 573,345 | |
Industrivarden AB, C Shares | 12,458 | | 486,807 | |
Investor AB, B Shares | 31,548 | | 724,837 | |
Sandvik AB | 10,673 | | 283,717 | |
Securitas AB, B Shares(1) | 9,159 | | 149,958 | |
Telefonaktiebolaget LM Ericsson, B Shares | 15,414 | | 206,741 | |
| | 2,582,762 | |
Switzerland — 5.6% | | |
Cie Financiere Richemont SA | 1,603 | | 194,188 | |
Geberit AG | 409 | | 296,890 | |
Holcim Ltd.(2) | 2,640 | | 157,948 | |
Kuehne + Nagel International AG | 2,065 | | 697,151 | |
Novartis AG | 9,380 | | 828,636 | |
Partners Group Holding AG | 394 | | 594,686 | |
Roche Holding AG | 840 | | 294,043 | |
UBS Group AG | 9,016 | | 146,927 | |
Zurich Insurance Group AG | 1,392 | | 585,476 | |
| | 3,795,945 | |
Taiwan — 0.3% | | |
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 1,501 | | 176,157 | |
United Kingdom — 16.8% | | |
3i Group plc | 13,088 | | 230,304 | |
Admiral Group plc | 4,625 | | 192,583 | |
Ashtead Group plc | 8,997 | | 656,310 | |
Aviva plc | 155,042 | | 903,497 | |
Barclays plc | 257,498 | | 668,670 | |
BHP Group plc | 24,191 | | 729,470 | |
BP plc | 94,069 | | 409,789 | |
Evraz plc | 106,688 | | 963,403 | |
Ferguson plc | 2,358 | | 320,240 | |
GlaxoSmithKline plc | 36,298 | | 692,341 | |
HSBC Holdings plc | 70,815 | | 457,879 | |
ITV plc(2) | 154,479 | | 280,736 | |
J Sainsbury plc | 55,047 | | 207,216 | |
JD Sports Fashion plc(2) | 21,942 | | 293,706 | |
Kingfisher plc(2) | 47,071 | | 238,888 | |
| | | | | | | | |
| Shares | Value |
Legal & General Group plc | 91,044 | | $ | 367,045 | |
M&G plc | 137,090 | | 474,082 | |
Next plc(2) | 3,368 | | 388,945 | |
Prudential plc | 8,764 | | 186,475 | |
Rio Tinto plc | 11,977 | | 1,030,001 | |
Royal Dutch Shell plc, B Shares | 11,003 | | 200,048 | |
Schroders plc | 3,214 | | 161,888 | |
Taylor Wimpey plc | 61,326 | | 148,681 | |
Unilever plc | 6,147 | | 368,443 | |
Vodafone Group plc | 334,771 | | 606,958 | |
WPP plc | 12,352 | | 170,625 | |
| | 11,348,223 | |
United States — 0.8% | | |
Broadcom, Inc. | 311 | | 146,895 | |
Microsoft Corp. | 999 | | 249,430 | |
NXP Semiconductors NV | 777 | | 164,273 | |
| | 560,598 | |
TOTAL COMMON STOCKS (Cost $53,500,999) | | 65,064,651 | |
WARRANTS† | | |
Switzerland† | | |
Cie Financiere Richemont SA(2) (Cost $—) | 1,938 | 1,250 | |
TEMPORARY CASH INVESTMENTS — 2.6% | | |
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.75%, 5/15/25 - 8/15/47, valued at $382,459), in a joint trading account at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $374,301) | | 374,301 | |
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.375%, 11/15/48, valued at $635,542), at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $623,000) | | 623,000 | |
State Street Institutional U.S. Government Money Market Fund, Premier Class | 754,700 | | 754,700 | |
TOTAL TEMPORARY CASH INVESTMENTS (Cost $1,752,001) | | 1,752,001 | |
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 2.7% |
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $1,787,271) | 1,787,271 | 1,787,271 | |
TOTAL INVESTMENT SECURITIES — 101.8% (Cost $57,040,271) | | 68,605,173 | |
OTHER ASSETS AND LIABILITIES — (1.8)% | | (1,226,765) | |
TOTAL NET ASSETS — 100.0% | | $ | 67,378,408 | |
| | | | | | | | | | | | | | |
FUTURES CONTRACTS PURCHASED |
Reference Entity | Contracts | Expiration Date | Notional Amount | Unrealized Appreciation (Depreciation)^ |
MSCI EAFE Index | 7 | June 2021 | $ | 817,950 | | $ | 17,836 |
^Amount represents value and unrealized appreciation (depreciation).
| | | | | |
MARKET SECTOR DIVERSIFICATION |
(as a % of net assets) | |
Financials | 29.4% |
Industrials | 17.3% |
Consumer Discretionary | 13.5% |
Materials | 9.1% |
Communication Services | 6.0% |
Health Care | 5.5% |
Energy | 5.2% |
Information Technology | 4.2% |
Consumer Staples | 3.8% |
Utilities | 1.7% |
Real Estate | 0.8% |
Temporary Cash Investments | 2.6% |
Temporary Cash Investments - Securities Lending Collateral | 2.7% |
Other Assets and Liabilities | (1.8)% |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS |
ADR | - | American Depositary Receipt |
†Category is less than 0.05% of total net assets.
(1)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $1,963,725. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(2)Non-income producing.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $2,049,888, which includes securities collateral of $262,617.
See Notes to Financial Statements.
| | |
Statement of Assets and Liabilities |
| | | | | |
MAY 28, 2021 (UNAUDITED) | |
Assets | |
Investment securities, at value (cost of $55,253,000) — including $1,963,725 of securities on loan | $ | 66,817,902 | |
Investment made with cash collateral received for securities on loan, at value (cost of $1,787,271) | 1,787,271 | |
Total investment securities, at value (cost of $57,040,271) | 68,605,173 | |
Foreign currency holdings, at value (cost of $20,112) | 20,095 | |
Deposits with broker for futures contracts | 49,896 | |
Receivable for capital shares sold | 54,765 | |
Receivable for variation margin on futures contracts | 1,330 | |
Dividends and interest receivable | 496,382 | |
Securities lending receivable | 4,722 | |
| 69,232,363 | |
| |
Liabilities | |
Payable for collateral received for securities on loan | 1,787,271 | |
Payable for capital shares redeemed | 9,490 | |
Accrued management fees | 54,629 | |
Distribution and service fees payable | 2,565 | |
| 1,853,955 | |
| |
Net Assets | $ | 67,378,408 | |
| |
Net Assets Consist of: | |
Capital (par value and paid-in surplus) | $ | 61,651,474 | |
Distributable earnings | 5,726,934 | |
| $ | 67,378,408 | |
| | | | | | | | | | | |
| Net Assets | Shares Outstanding | Net Asset Value Per Share |
Investor Class, $0.01 Par Value | $16,524,907 | 1,807,423 | $9.14 |
I Class, $0.01 Par Value | $40,531,722 | 4,444,454 | $9.12 |
A Class, $0.01 Par Value | $7,126,374 | 774,130 | $9.21* |
C Class, $0.01 Par Value | $829,879 | 90,312 | $9.19 |
R Class, $0.01 Par Value | $932,794 | 101,668 | $9.17 |
R6 Class, $0.01 Par Value | $1,432,732 | 157,230 | $9.11 |
*Maximum offering price $9.77 (net asset value divided by 0.9425).
See Notes to Financial Statements.
| | | | | |
FOR THE SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) | |
Investment Income (Loss) | |
Income: | |
Dividends (net of foreign taxes withheld of $118,749) | $ | 1,232,418 | |
Securities lending, net | 5,829 | |
Interest | 110 | |
| 1,238,357 | |
| |
Expenses: | |
Management fees | 293,056 | |
Distribution and service fees: | |
A Class | 8,497 | |
C Class | 4,447 | |
R Class | 2,252 | |
Directors' fees and expenses | 760 | |
Other expenses | 106 | |
| 309,118 | |
| |
Net investment income (loss) | 929,239 | |
| |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on: | |
Investment transactions | 2,115,428 | |
Futures contract transactions | 91,338 | |
Foreign currency translation transactions | (3,135) | |
| 2,203,631 | |
| |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 7,335,010 | |
Futures contracts | (22,256) | |
Translation of assets and liabilities in foreign currencies | 2,358 | |
| 7,315,112 | |
| |
Net realized and unrealized gain (loss) | 9,518,743 | |
| |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 10,447,982 | |
See Notes to Financial Statements.
| | |
Statement of Changes in Net Assets |
| | | | | | | | |
SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2020 |
Increase (Decrease) in Net Assets | May 28, 2021 | November 30, 2020 |
Operations | | |
Net investment income (loss) | $ | 929,239 | | $ | 983,587 | |
Net realized gain (loss) | 2,203,631 | | (1,208,921) | |
Change in net unrealized appreciation (depreciation) | 7,315,112 | | 3,521,037 | |
Net increase (decrease) in net assets resulting from operations | 10,447,982 | | 3,295,703 | |
| | |
Distributions to Shareholders | | |
From earnings: | | |
Investor Class | (310,577) | | (330,222) | |
I Class | (835,020) | | (669,104) | |
A Class | (125,340) | | (164,627) | |
C Class | (8,358) | | (17,023) | |
R Class | (14,024) | | (14,529) | |
R6 Class | (25,537) | | (218,419) | |
Decrease in net assets from distributions | (1,318,856) | | (1,413,924) | |
| | |
Capital Share Transactions | | |
Net increase (decrease) in net assets from capital share transactions (Note 5) | 6,741,375 | | 6,489,456 | |
| | |
Net increase (decrease) in net assets | 15,870,501 | | 8,371,235 | |
| | |
Net Assets | | |
Beginning of period | 51,507,907 | | 43,136,672 | |
End of period | $ | 67,378,408 | | $ | 51,507,907 | |
See Notes to Financial Statements.
| | |
Notes to Financial Statements |
MAY 28, 2021 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. International Value Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek long-term capital growth.
The fund offers the Investor Class, I Class, A Class, C Class, R Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value (NAV) per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported NAV per share. Repurchase agreements are valued at cost, which approximates fair value. Exchange-traded futures contracts are valued at the settlement price as provided by the appropriate exchange.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 28, 2021.
| | | | | | | | | | | | | | | | | |
Remaining Contractual Maturity of Agreements |
| Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total |
Securities Lending Transactions(1) | | | | |
Common Stocks | $ | 1,787,271 | | — | | — | | — | | $ | 1,787,271 | |
Gross amount of recognized liabilities for securities lending transactions | $ | 1,787,271 | |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class.
The annual management fee for each class is as follows:
| | | | | | | | | | | | | | | | | |
Investor Class | I Class | A Class | C Class | R Class | R6 Class |
1.10% | 0.90% | 1.10% | 1.10% | 1.10% | 0.75% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 28, 2021 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases were $27,763 and there were no interfund sales.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 28, 2021 were $36,974,708 and $31,512,593, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
| | | | | | | | | | | | | | |
| Six months ended May 28, 2021 | Year ended November 30, 2020 |
| Shares | Amount | Shares | Amount |
Investor Class/Shares Authorized | 40,000,000 | | | 40,000,000 | | |
Sold | 373,795 | | $ | 3,241,043 | | 1,009,982 | | $ | 7,521,588 | |
Issued in reinvestment of distributions | 35,319 | | 300,929 | | 46,745 | | 321,514 | |
Redeemed | (216,980) | | (1,882,912) | | (648,246) | | (4,522,731) | |
| 192,134 | | 1,659,060 | | 408,481 | | 3,320,371 | |
I Class/Shares Authorized | 40,000,000 | | | 40,000,000 | | |
Sold | 755,560 | | 6,463,980 | | 1,655,973 | | 11,355,643 | |
Issued in reinvestment of distributions | 98,238 | | 835,020 | | 96,273 | | 669,104 | |
Redeemed | (237,755) | | (2,054,158) | | (430,511) | | (3,029,441) | |
| 616,043 | | 5,244,842 | | 1,321,735 | | 8,995,306 | |
A Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | 59,321 | | 516,967 | | 43,931 | | 312,511 | |
Issued in reinvestment of distributions | 14,498 | | 124,535 | | 23,249 | | 164,079 | |
Redeemed | (85,018) | | (744,831) | | (141,618) | | (1,033,880) | |
| (11,199) | | (103,329) | | (74,438) | | (557,290) | |
C Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | 7,840 | | 65,579 | | 7,452 | | 55,084 | |
Issued in reinvestment of distributions | 974 | | 8,358 | | 2,374 | | 16,902 | |
Redeemed | (36,938) | | (317,966) | | (77,824) | | (542,937) | |
| (28,124) | | (244,029) | | (67,998) | | (470,951) | |
R Class/Shares Authorized | 30,000,000 | | | 30,000,000 | | |
Sold | 11,252 | | 97,657 | | 49,675 | | 350,364 | |
Issued in reinvestment of distributions | 1,328 | | 11,483 | | 2,089 | | 14,495 | |
Redeemed | (19,247) | | (166,322) | | (19,547) | | (127,277) | |
| (6,667) | | (57,182) | | 32,217 | | 237,582 | |
R6 Class/Shares Authorized | 45,000,000 | | | 45,000,000 | | |
Sold | 97,700 | | 855,965 | | 363,258 | | 2,504,184 | |
Issued in reinvestment of distributions | 3,008 | | 25,537 | | 31,120 | | 218,419 | |
Redeemed | (74,967) | | (639,489) | | (1,122,203) | | (7,758,165) | |
| 25,741 | | 242,013 | | (727,825) | | (5,035,562) | |
Net increase (decrease) | 787,928 | | $ | 6,741,375 | | 892,172 | | $ | 6,489,456 | |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
| | | | | | | | | | | |
| Level 1 | Level 2 | Level 3 |
Assets | | | |
Investment Securities | | | |
Common Stocks | $ | 736,755 | | $ | 64,327,896 | | — |
Warrants | — | 1,250 | | — |
Temporary Cash Investments | 754,700 | | 997,301 | | — |
Temporary Cash Investments - Securities Lending Collateral | 1,787,271 | | — | — |
| $ | 3,278,726 | | $ | 65,326,447 | | — |
Other Financial Instruments | | | |
Futures Contracts | $ | 17,836 | | — | — |
7. Derivative Instruments
Equity Price Risk — The fund is subject to equity price risk in the normal course of pursuing its investment objectives. A fund may enter into futures contracts based on an equity index in order to manage its exposure to changes in market conditions. A fund may purchase futures contracts to gain exposure to increases in market value or sell futures contracts to protect against a decline in market value. Upon entering into a futures contract, a fund is required to deposit either cash or securities in an amount equal to a certain percentage of the contract value (initial margin). Subsequent payments (variation margin) are made or received daily, in cash, by a fund. The variation margin is equal to the daily change in the contract value and is recorded as unrealized gains and losses. A fund recognizes a realized gain or loss when the contract is closed or expires. Net realized and unrealized gains or losses occurring during the holding period of futures contracts are a component of net realized gain (loss) on futures contract transactions and change in net unrealized appreciation (depreciation) on futures contracts, respectively. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. The fund's average notional exposure to equity price risk derivative instruments held during the period was $804,003 futures contracts purchased.
The value of equity price risk derivative instruments as of May 28, 2021, is disclosed on the Statement of Assets and Liabilities as an asset of $1,330 in receivable for variation margin on futures contracts*. For the six months ended May 28, 2021, the effect of equity price risk derivative instruments on the Statement of Operations was $91,338 in net realized gain (loss) on futures contract transactions and $(22,256) in change in net unrealized appreciation (depreciation) on futures contracts.
*Included in the unrealized appreciation (depreciation) on futures contracts as reported in the Schedule of Investments.
8. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
The fund’s investment process may result in high portfolio turnover, which could mean high transaction costs, affecting both performance and capital gains tax liabilities to investors.
9. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
| | | | | |
Federal tax cost of investments | $ | 57,165,787 | |
Gross tax appreciation of investments | $ | 11,813,494 | |
Gross tax depreciation of investments | (374,108) | |
Net tax appreciation (depreciation) of investments | $ | 11,439,386 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2020, the fund had accumulated short-term capital losses of $(5,086,545) and accumulated long-term capital losses of $(3,356,355), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
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For a Share Outstanding Throughout the Years Ended November 30 (except as noted) |
Per-Share Data | | | | | Ratios and Supplemental Data | | |
| | Income From Investment Operations: | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
Investor Class | | | | | | | | | | | | |
2021(3) | $7.82 | 0.13 | 1.37 | 1.50 | (0.18) | $9.14 | 19.36% | 1.10%(4) | 1.10%(4) | 3.02%(4) | 3.02%(4) | 54% | $16,525 | |
2020 | $7.57 | 0.15 | 0.33 | 0.48 | (0.23) | $7.82 | 6.69% | 1.21% | 1.22% | 2.16% | 2.15% | 91% | $12,633 | |
2019 | $7.61 | 0.23 | 0.02 | 0.25 | (0.29) | $7.57 | 3.41% | 1.34% | 1.34% | 3.13% | 3.13% | 87% | $9,136 | |
2018 | $8.96 | 0.21 | (1.27) | (1.06) | (0.29) | $7.61 | (12.25)% | 1.30% | 1.30% | 2.56% | 2.56% | 80% | $11,008 | |
2017 | $7.40 | 0.21 | 1.51 | 1.72 | (0.16) | $8.96 | 23.59% | 1.30% | 1.30% | 2.47% | 2.47% | 101% | $14,398 | |
2016 | $7.83 | 0.20 | (0.45) | (0.25) | (0.18) | $7.40 | (3.15)% | 1.31% | 1.31% | 2.86% | 2.86% | 76% | $13,810 | |
I Class | | | | | | | | | | | | | |
2021(3) | $7.81 | 0.14 | 1.37 | 1.51 | (0.20) | $9.12 | 19.50% | 0.90%(4) | 0.90%(4) | 3.22%(4) | 3.22%(4) | 54% | $40,532 | |
2020 | $7.57 | 0.16 | 0.33 | 0.49 | (0.25) | $7.81 | 6.93% | 1.01% | 1.02% | 2.36% | 2.35% | 91% | $29,898 | |
2019 | $7.62 | 0.25 | 0.01 | 0.26 | (0.31) | $7.57 | 3.53% | 1.14% | 1.14% | 3.33% | 3.33% | 87% | $18,981 | |
2018 | $8.97 | 0.22 | (1.26) | (1.04) | (0.31) | $7.62 | (12.05)% | 1.10% | 1.10% | 2.76% | 2.76% | 80% | $7,434 | |
2017 | $7.41 | 0.23 | 1.51 | 1.74 | (0.18) | $8.97 | 23.86% | 1.10% | 1.10% | 2.67% | 2.67% | 101% | $4,173 | |
2016 | $7.84 | 0.22 | (0.45) | (0.23) | (0.20) | $7.41 | (2.99)% | 1.11% | 1.11% | 3.06% | 3.06% | 76% | $7,300 | |
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For a Share Outstanding Throughout the Years Ended November 30 (except as noted) |
Per-Share Data | | | | | Ratios and Supplemental Data | | |
| | Income From Investment Operations: | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
A Class | | | | | | | | | | | | | |
2021(3) | $7.86 | 0.12 | 1.39 | 1.51 | (0.16) | $9.21 | 19.34% | 1.35%(4) | 1.35%(4) | 2.77%(4) | 2.77%(4) | 54% | $7,126 | |
2020 | $7.60 | 0.13 | 0.33 | 0.46 | (0.20) | $7.86 | 6.32% | 1.46% | 1.47% | 1.91% | 1.90% | 91% | $6,176 | |
2019 | $7.64 | 0.22 | 0.01 | 0.23 | (0.27) | $7.60 | 3.08% | 1.59% | 1.59% | 2.88% | 2.88% | 87% | $6,532 | |
2018 | $8.99 | 0.19 | (1.27) | (1.08) | (0.27) | $7.64 | (12.43)% | 1.55% | 1.55% | 2.31% | 2.31% | 80% | $7,651 | |
2017 | $7.41 | 0.17 | 1.55 | 1.72 | (0.14) | $8.99 | 23.45% | 1.55% | 1.55% | 2.22% | 2.22% | 101% | $9,857 | |
2016 | $7.85 | 0.18 | (0.45) | (0.27) | (0.17) | $7.41 | (3.46)% | 1.56% | 1.56% | 2.61% | 2.61% | 76% | $11,029 | |
C Class | | | | | | | | | | | | | |
2021(3) | $7.82 | 0.07 | 1.39 | 1.46 | (0.09) | $9.19 | 18.78% | 2.10%(4) | 2.10%(4) | 2.02%(4) | 2.02%(4) | 54% | $830 | |
2020 | $7.51 | 0.07 | 0.34 | 0.41 | (0.10) | $7.82 | 5.65% | 2.21% | 2.22% | 1.16% | 1.15% | 91% | $926 | |
2019 | $7.54 | 0.16 | 0.01 | 0.17 | (0.20) | $7.51 | 2.29% | 2.34% | 2.34% | 2.13% | 2.13% | 87% | $1,400 | |
2018 | $8.87 | 0.13 | (1.26) | (1.13) | (0.20) | $7.54 | (13.04)% | 2.30% | 2.30% | 1.56% | 1.56% | 80% | $2,224 | |
2017 | $7.33 | 0.12 | 1.51 | 1.63 | (0.09) | $8.87 | 22.41% | 2.30% | 2.30% | 1.47% | 1.47% | 101% | $4,225 | |
2016 | $7.78 | 0.13 | (0.46) | (0.33) | (0.12) | $7.33 | (4.21)% | 2.31% | 2.31% | 1.86% | 1.86% | 76% | $3,774 | |
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For a Share Outstanding Throughout the Years Ended November 30 (except as noted) |
Per-Share Data | | | | | Ratios and Supplemental Data | | |
| | Income From Investment Operations: | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
R Class | | | | | | | | | | | | | |
2021(3) | $7.83 | 0.10 | 1.38 | 1.48 | (0.14) | $9.17 | 18.98% | 1.60%(4) | 1.60%(4) | 2.52%(4) | 2.52%(4) | 54% | $933 | |
2020 | $7.55 | 0.12 | 0.33 | 0.45 | (0.17) | $7.83 | 6.16% | 1.71% | 1.72% | 1.66% | 1.65% | 91% | $848 | |
2019 | $7.58 | 0.19 | 0.02 | 0.21 | (0.24) | $7.55 | 2.91% | 1.84% | 1.84% | 2.63% | 2.63% | 87% | $575 | |
2018 | $8.93 | 0.18 | (1.29) | (1.11) | (0.24) | $7.58 | (12.74)% | 1.80% | 1.80% | 2.06% | 2.06% | 80% | $672 | |
2017 | $7.36 | 0.16 | 1.52 | 1.68 | (0.11) | $8.93 | 23.09% | 1.80% | 1.80% | 1.97% | 1.97% | 101% | $537 | |
2016 | $7.80 | 0.18 | (0.47) | (0.29) | (0.15) | $7.36 | (3.68)% | 1.81% | 1.81% | 2.36% | 2.36% | 76% | $448 | |
R6 Class | | | | | | | | | | | | | |
2021(3) | $7.81 | 0.14 | 1.37 | 1.51 | (0.21) | $9.11 | 19.55% | 0.75%(4) | 0.75%(4) | 3.37%(4) | 3.37%(4) | 54% | $1,433 | |
2020 | $7.58 | 0.18 | 0.32 | 0.50 | (0.27) | $7.81 | 7.08% | 0.86% | 0.87% | 2.51% | 2.50% | 91% | $1,027 | |
2019 | $7.63 | 0.26 | 0.01 | 0.27 | (0.32) | $7.58 | 3.72% | 0.99% | 0.99% | 3.48% | 3.48% | 87% | $6,513 | |
2018 | $8.98 | 0.26 | (1.29) | (1.03) | (0.32) | $7.63 | (11.91)% | 0.95% | 0.95% | 2.91% | 2.91% | 80% | $16,485 | |
2017 | $7.42 | 0.23 | 1.52 | 1.75 | (0.19) | $8.98 | 24.06% | 0.95% | 0.95% | 2.82% | 2.82% | 101% | $46,833 | |
2016 | $7.85 | 0.23 | (0.45) | (0.22) | (0.21) | $7.42 | (2.87)% | 0.96% | 0.96% | 3.21% | 3.21% | 76% | $23,378 | |
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Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)Six months ended May 28, 2021 (unaudited).
(4)Annualized.
See Notes to Financial Statements.
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Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2019 through December 31, 2020. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century Investments’ website at americancentury.com/proxy and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
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American Century World Mutual Funds, Inc. | |
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Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |
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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. | |
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©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92632 2107 | |
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| Semiannual Report |
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| May 28, 2021 |
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| Non-U.S. Intrinsic Value Fund |
| Investor Class (ANTUX) |
| I Class (ANVHX) |
| A Class (ANVLX) |
| R Class (ANVRX) |
| R6 Class (ANVMX) |
| G Class (ANTGX) |
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President’s Letter | |
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Fund Characteristics | |
Shareholder Fee Example | |
Schedule of Investments | |
Statement of Assets and Liabilities | |
Statement of Operations | |
Statement of Changes in Net Assets | |
Notes to Financial Statements | |
Financial Highlights | |
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Liquidity Risk Management Program | |
Additional Information | |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended May 28, 2021. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional investment insights, please visit americancentury.com.
Government Support, Vaccines Aided Market Outlook
Broad market sentiment was upbeat to start the period. Investors generally looked beyond periodic upswings in virus cases, COVID-19 lockdowns and restrictions in some regions, and uncertainty surrounding the U.S. political climate. Ongoing support from global central banks and governments helped maintain investor confidence in the financial markets and strengthen the economic backdrop.
In the U.S., improving manufacturing, employment and housing data, along with positive vaccine developments and a late-2020 federal coronavirus aid package helped sustain the upbeat tone into early 2021. Election results gave Democrats control of the White House and Congress, setting the stage for another federal aid bill in March and proposals for significant government spending down the road.
Outside the U.S., economic data improved, albeit at a slower pace. In addition, expanding worldwide vaccine distributions and ongoing reopenings helped bolster economic and earnings outlooks. This improving backdrop combined with massive monetary and fiscal support helped fuel robust gains for stocks and other riskier assets for the six-month period. Economic gains and monetary support, along with supply chain disruptions, helped push inflation higher, particularly in the U.S., where prices increased at the fastest rate in nearly 13 years. However, policymakers insisted the pricing pressures were temporary and maintained their generally upbeat outlooks.
Reopenings Will Shape Market Dynamics
The return to pre-pandemic life is progressing, and as economies throughout the world reopen and rebuild, investors likely will face renewed opportunities and challenges. Global growth data, the virus’s trajectory, supply chain normalization, and the effects of fiscal and monetary policy likely will be among the factors swaying market dynamics.
We appreciate your confidence in us during these extraordinary times. Our firm has a long history of helping clients weather unpredictable markets, and we’re confident we will continue to meet today’s challenges.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
| | | | | |
MAY 28, 2021 | |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 99.4% |
Other Assets and Liabilities | 0.6% |
| |
Top Five Countries | % of net assets |
United Kingdom | 25.3% |
Japan | 16.9% |
France | 16.7% |
Russia | 8.0% |
Germany | 7.7% |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2020 to May 28, 2021.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not through a financial intermediary or employer-sponsored retirement plan account), American Century Investments may charge you a $25.00 annual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $25.00 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments brokerage accounts, you are currently not subject to this fee. If you are subject to the account maintenance fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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| Beginning Account Value 12/1/20 | Ending Account Value 5/28/21 | Expenses Paid During Period(1) 12/1/20 - 5/28/21 | Annualized Expense Ratio(1) |
Actual | | | | |
Investor Class | $1,000 | $1,212.10 | $7.05 | 1.30% |
I Class | $1,000 | $1,213.20 | $5.97 | 1.10% |
A Class | $1,000 | $1,209.50 | $8.40 | 1.55% |
R Class | $1,000 | $1,209.40 | $9.75 | 1.80% |
R6 Class | $1,000 | $1,213.60 | $5.16 | 0.95% |
G Class | $1,000 | $1,219.30 | $0.00 | 0.00%(2) |
Hypothetical | | | | |
Investor Class | $1,000 | $1,018.15 | $6.43 | 1.30% |
I Class | $1,000 | $1,019.13 | $5.45 | 1.10% |
A Class | $1,000 | $1,016.92 | $7.67 | 1.55% |
R Class | $1,000 | $1,015.69 | $8.90 | 1.80% |
R6 Class | $1,000 | $1,019.86 | $4.71 | 0.95% |
G Class | $1,000 | $1,024.52 | $0.00 | 0.00%(2) |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 179, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
(2)Other expenses, which include directors' fees and expenses, did not exceed 0.005%.
MAY 28, 2021 (UNAUDITED)
| | | | | | | | |
| Shares | Value |
COMMON STOCKS — 99.4% | | |
Brazil — 0.6% | | |
Banco Bradesco SA | 963,879 | | $ | 4,240,794 | |
Canada — 2.4% | | |
Linamar Corp. | 84,151 | | 5,509,294 | |
Teck Resources Ltd., Class B | 469,436 | | 11,599,763 | |
| | 17,109,057 | |
China — 5.3% | | |
Alibaba Group Holding Ltd.(1) | 507,100 | | 13,562,649 | |
Baidu, Inc., Class A(1) | 579,500 | | 14,022,871 | |
PetroChina Co. Ltd., H Shares | 22,310,000 | | 9,123,053 | |
| | 36,708,573 | |
France — 16.7% | | |
Atos SE | 127,314 | | 8,514,094 | |
BNP Paribas SA | 347,045 | | 23,892,352 | |
Publicis Groupe SA | 294,036 | | 19,875,701 | |
Sanofi | 242,249 | | 25,919,007 | |
Sanofi, ADR | 128,909 | | 6,887,608 | |
Societe Generale SA | 327,186 | | 10,476,181 | |
TOTAL SE | 452,425 | | 21,101,445 | |
| | 116,666,388 | |
Germany — 7.7% | | |
Bayerische Motoren Werke AG | 158,588 | | 16,835,327 | |
Commerzbank AG(1) | 1,745,699 | | 14,081,639 | |
Daimler AG | 247,966 | | 23,134,655 | |
| | 54,051,621 | |
Italy — 2.0% | | |
Eni SpA | 648,240 | | 7,964,282 | |
UniCredit SpA | 490,475 | | 6,269,589 | |
| | 14,233,871 | |
Japan — 16.9% | | |
Alfresa Holdings Corp. | 434,100 | | 6,709,891 | |
Haseko Corp. | 454,700 | | 6,495,813 | |
Hazama Ando Corp. | 388,400 | | 2,968,746 | |
Mitsubishi UFJ Financial Group, Inc. | 4,109,800 | | 23,603,146 | |
Mizuho Financial Group, Inc. | 1,103,700 | | 17,101,480 | |
Nissan Motor Co. Ltd.(1) | 3,026,000 | | 15,220,993 | |
Sumitomo Mitsui Financial Group, Inc. | 409,600 | | 14,975,230 | |
Sumitomo Rubber Industries Ltd. | 511,700 | | 6,594,488 | |
Takeda Pharmaceutical Co. Ltd. | 562,700 | | 19,228,230 | |
Token Corp. | 35,700 | | 3,158,562 | |
Yamazen Corp. | 221,200 | | 1,960,493 | |
| | 118,017,072 | |
Mexico — 2.0% | | |
Fibra Uno Administracion SA de CV | 11,648,708 | | 13,655,856 | |
Netherlands — 1.2% | | |
Aegon NV | 1,833,247 | | 8,690,918 | |
Russia — 8.0% | | |
Gazprom PJSC, ADR | 251,278 | | 1,783,977 | |
| | | | | | | | |
| Shares | Value |
Gazprom PJSC | 3,667,763 | | $ | 13,107,226 | |
MMC Norilsk Nickel PJSC | 54,768 | | 20,370,623 | |
Surgutneftegas PJSC, Preference Shares | 32,992,174 | | 20,867,480 | |
| | 56,129,306 | |
South Korea — 3.3% | | |
Hyundai Mobis Co. Ltd. | 56,411 | | 14,060,337 | |
Hyundai Motor Co. | 43,419 | | 9,011,100 | |
| | 23,071,437 | |
Spain — 3.3% | | |
Atresmedia Corp. de Medios de Comunicacion SA(1) | 604,219 | | 2,959,154 | |
Banco Bilbao Vizcaya Argentaria SA(1) | 2,330,973 | | 14,558,816 | |
Indra Sistemas SA(1) | 615,959 | | 5,362,869 | |
| | 22,880,839 | |
Switzerland — 4.7% | | |
Credit Suisse Group AG | 1,826,684 | | 19,959,606 | |
Novartis AG | 147,034 | | 12,989,085 | |
| | 32,948,691 | |
United Kingdom — 25.3% | | |
AstraZeneca plc, ADR | 468,023 | | 26,569,666 | |
Babcock International Group plc(1) | 2,821,594 | | 11,959,521 | |
BAE Systems plc | 1,856,322 | | 13,825,721 | |
Barclays plc | 12,183,689 | | 31,638,546 | |
BT Group plc(1) | 2,034,942 | | 5,037,101 | |
Capita plc(1) | 4,984,201 | | 2,839,808 | |
GlaxoSmithKline plc | 1,904,102 | | 36,318,488 | |
Kingfisher plc(1) | 1,530,026 | | 7,764,957 | |
Standard Chartered plc (London) | 783,622 | | 5,637,833 | |
Taylor Wimpey plc | 4,346,626 | | 10,538,156 | |
WPP plc | 1,777,597 | | 24,555,002 | |
| | 176,684,799 | |
TOTAL INVESTMENT SECURITIES — 99.4% (Cost $577,690,974) | | 695,089,222 | |
OTHER ASSETS AND LIABILITIES — 0.6% | | 4,502,184 | |
TOTAL NET ASSETS — 100.0% | | $ | 699,591,406 | |
| | | | | |
MARKET SECTOR DIVERSIFICATION |
(as a % of net assets) | |
Financials | 27.8% |
Health Care | 19.4% |
Consumer Discretionary | 18.9% |
Energy | 10.5% |
Communication Services | 9.5% |
Materials | 4.5% |
Industrials | 4.4% |
Information Technology | 2.4% |
Real Estate | 2.0% |
Other Assets and Liabilities | 0.6% |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS |
ADR | - | American Depositary Receipt |
(1)Non-income producing.
See Notes to Financial Statements.
| | |
Statement of Assets and Liabilities |
| | | | | |
MAY 28, 2021 (UNAUDITED) | |
Assets | |
Investment securities, at value (cost of $577,690,974) | $ | 695,089,222 | |
Foreign currency holdings, at value (cost of $161,264) | 161,290 | |
Receivable for investments sold | 3,593,648 | |
Receivable for capital shares sold | 5,915 | |
Dividends and interest receivable | 5,155,653 | |
| 704,005,728 | |
| |
Liabilities | |
Disbursements in excess of demand deposit cash | 2,159,077 | |
Payable for capital shares redeemed | 2,075,224 | |
Accrued management fees | 180,021 | |
| 4,414,322 | |
| |
Net Assets | $ | 699,591,406 | |
| |
Net Assets Consist of: | |
Capital (par value and paid-in surplus) | $ | 585,871,767 | |
Distributable earnings | 113,719,639 | |
| $ | 699,591,406 | |
| | | | | | | | | | | |
| Net Assets | Shares Outstanding | Net Asset Value Per Share |
Investor Class, $0.01 Par Value | $165,743,313 | 15,418,402 | $10.75 |
I Class, $0.01 Par Value | $144,985 | 13,481 | $10.75 |
A Class, $0.01 Par Value | $5,410 | 504 | $10.73* |
R Class, $0.01 Par Value | $27,491 | 2,565 | $10.72 |
R6 Class, $0.01 Par Value | $5,461 | 500 | $10.92 |
G Class, $0.01 Par Value | $533,664,746 | 49,267,180 | $10.83 |
*Maximum offering price $11.38 (net asset value divided by 0.9425).
See Notes to Financial Statements.
| | | | | |
FOR THE SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) | |
Investment Income (Loss) | |
Income: | |
Dividends (net of foreign taxes withheld of $1,171,724) | $ | 9,465,368 | |
Interest | 1,396 | |
| 9,466,764 | |
| |
Expenses: | |
Management fees | 3,139,726 | |
Distribution and service fees: | |
A Class | 6 | |
R Class | 42 | |
Directors' fees and expenses | 7,901 | |
Other expenses | 4,766 | |
| 3,152,441 | |
Fees waived - G Class | (2,335,569) | |
| 816,872 | |
| |
Net investment income (loss) | 8,649,892 | |
| |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on: | |
Investment transactions | 15,856,135 | |
Foreign currency translation transactions | (20,429) | |
| 15,835,706 | |
| |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 98,194,562 | |
Translation of assets and liabilities in foreign currencies | 3,421 | |
| 98,197,983 | |
| |
Net realized and unrealized gain (loss) | 114,033,689 | |
| |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 122,683,581 | |
See Notes to Financial Statements.
| | |
Statement of Changes in Net Assets |
| | | | | | | | |
SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2020 |
Increase (Decrease) in Net Assets | May 28, 2021 | November 30, 2020 |
Operations | | |
Net investment income (loss) | $ | 8,649,892 | | $ | 9,946,244 | |
Net realized gain (loss) | 15,835,706 | | (22,013,715) | |
Change in net unrealized appreciation (depreciation) | 98,197,983 | | 11,283,844 | |
Net increase (decrease) in net assets resulting from operations | 122,683,581 | | (783,627) | |
| | |
Distributions to Shareholders | | |
From earnings: | | |
Investor Class | (1,430,575) | | (4,358,940) | |
I Class | (70) | | (218) | |
A Class | (49) | | (216) | |
R Class | (56) | | (215) | |
R6 Class | (75) | | (215) | |
G Class | (11,626,760) | | (14,604,585) | |
Decrease in net assets from distributions | (13,057,585) | | (18,964,389) | |
| | |
Capital Share Transactions | | |
Net increase (decrease) in net assets from capital share transactions (Note 5) | 19,208,821 | | 224,041,779 | |
| | |
Net increase (decrease) in net assets | 128,834,817 | | 204,293,763 | |
| | |
Net Assets | | |
Beginning of period | 570,756,589 | | 366,462,826 | |
End of period | $ | 699,591,406 | | $ | 570,756,589 | |
See Notes to Financial Statements.
| | |
Notes to Financial Statements |
MAY 28, 2021 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Non-U.S. Intrinsic Value Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital appreciation.
The fund offers the Investor Class, I Class, A Class, R Class, R6 Class and G Class. The A Class may incur an initial sales charge and may be subject to a contingent deferred sales charge. Sale of the I Class, A Class, R Class and R6 Class commenced on December 3, 2019.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value (NAV) per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported NAV per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 56% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), extraordinary expenses, and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The investment advisor agreed to waive the G Class’s management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors.
The annual management fee for each class is as follows:
| | | | | | | | | | | | | | | | | |
Investor Class | I Class | A Class | R Class | R6 Class | G Class |
1.30% | 1.10% | 1.30% | 1.30% | 0.95% | 0.00%(1) |
(1)Annual management fee before waiver was 0.95%.
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 28, 2021 are detailed in the Statement of Operations.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. There were no interfund transactions during the period.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 28, 2021 were $192,187,008 and $169,459,236, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
| | | | | | | | | | | | | | |
| Six months ended May 28, 2021 | Year ended November 30, 2020(1) |
| Shares | Amount | Shares | Amount |
Investor Class/Shares Authorized | 130,000,000 | | | 130,000,000 | | |
Sold | 4,063,891 | | $ | 41,864,279 | | 2,498,370 | | $ | 19,418,404 | |
Issued in reinvestment of distributions | 158,244 | | 1,430,521 | | 409,675 | | 4,358,940 | |
Redeemed | (790,913) | | (7,794,488) | | (523,717) | | (5,171,299) | |
| 3,431,222 | | 35,500,312 | | 2,384,328 | | 18,606,045 | |
I Class/Shares Authorized | 50,000,000 | | | 50,000,000 | | |
Sold | 12,974 | | 131,000 | | 479 | | 5,000 | |
Issued in reinvestment of distributions | 8 | | 70 | | 20 | | 218 | |
| 12,982 | | 131,070 | | 499 | | 5,218 | |
A Class/Shares Authorized | 50,000,000 | | | 50,000,000 | | |
Sold | — | | — | | 479 | | 5,000 | |
Issued in reinvestment of distributions | 5 | | 49 | | 20 | | 216 | |
| 5 | | 49 | | 499 | | 5,216 | |
R Class/Shares Authorized | 50,000,000 | | | 50,000,000 | | |
Sold | 2,216 | | 21,706 | | 1,287 | | 11,285 | |
Issued in reinvestment of distributions | 6 | | 56 | | 20 | | 215 | |
Redeemed | (382) | | (3,702) | | (582) | | (4,568) | |
| 1,840 | | 18,060 | | 725 | | 6,932 | |
R6 Class/Shares Authorized | 60,000,000 | | | 60,000,000 | | |
Sold | — | | — | | 472 | | 5,000 | |
Issued in reinvestment of distributions | 8 | | 75 | | 20 | | 215 | |
| 8 | | 75 | | 492 | | 5,215 | |
G Class/Shares Authorized | 340,000,000 | | | 340,000,000 | | |
Sold | 2,128,936 | | 20,560,459 | | 31,175,888 | | 251,690,777 | |
Issued in reinvestment of distributions | 1,284,725 | | 11,626,760 | | 1,371,323 | | 14,604,585 | |
Redeemed | (4,991,093) | | (48,627,964) | | (6,283,725) | | (60,882,209) | |
| (1,577,432) | | (16,440,745) | | 26,263,486 | | 205,413,153 | |
Net increase (decrease) | 1,868,625 | | $ | 19,208,821 | | 28,650,029 | | $ | 224,041,779 | |
(1)December 3, 2019 (commencement of sale) through November 30, 2020 for I Class, A Class, R Class and R6 Class.
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
| | | | | | | | | | | |
| Level 1 | Level 2 | Level 3 |
Assets | | | |
Investment Securities | | | |
Common Stocks | | | |
Canada | $ | 11,599,763 | | $ | 5,509,294 | | — | |
France | 6,887,608 | | 109,778,780 | | — | |
United Kingdom | 26,569,666 | | 150,115,133 | | — | |
Other Countries | — | | 384,628,978 | | — | |
| $ | 45,057,037 | | $ | 650,032,185 | | — | |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund is owned by a relatively small number of shareholders, and in the event such shareholders redeem, the ongoing operations of the fund may be at risk.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
| | | | | |
Federal tax cost of investments | $ | 583,291,517 | |
Gross tax appreciation of investments | $ | 126,187,466 | |
Gross tax depreciation of investments | (14,389,761) | |
Net tax appreciation (depreciation) of investments | $ | 111,797,705 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2020, the fund had accumulated long-term capital losses of $(18,246,397), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
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For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | | | | | |
Per-Share Data | | | | | | | Ratios and Supplemental Data |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
Investor Class | | | | | | | | | | | | | | |
2021(3) | $8.98 | 0.09 | 1.80 | 1.89 | (0.12) | — | (0.12) | $10.75 | 21.21% | 1.30%(4) | 1.30%(4) | 1.78%(4) | 1.78%(4) | 28% | $165,743 | |
2020 | $10.61 | 0.13 | (1.31) | (1.18) | (0.32) | (0.13) | (0.45) | $8.98 | (11.75)% | 1.31% | 1.31% | 1.60% | 1.60% | 68% | $107,655 | |
2019(5) | $10.00 | 0.31 | 0.34 | 0.65 | (0.04) | — | (0.04) | $10.61 | 6.59% | 1.31%(4) | 1.31%(4) | 3.04%(4) | 3.04%(4) | 85% | $101,934 | |
I Class | | | | | | | | | | | | | | | |
2021(3) | $8.99 | 0.18 | 1.72 | 1.90 | (0.14) | — | (0.14) | $10.75 | 21.32% | 1.10%(4) | 1.10%(4) | 1.98%(4) | 1.98%(4) | 28% | $145 | |
2020(6) | $10.45 | 0.15 | (1.16) | (1.01) | (0.32) | (0.13) | (0.45) | $8.99 | (10.29)% | 1.11%(4) | 1.11%(4) | 1.80%(4) | 1.80%(4) | 68%(7) | $4 | |
A Class | | | | | | | | | | | | | | | |
2021(3) | $8.96 | 0.07 | 1.80 | 1.87 | (0.10) | — | (0.10) | $10.73 | 20.95% | 1.55%(4) | 1.55%(4) | 1.53%(4) | 1.53%(4) | 28% | $5 | |
2020(6) | $10.45 | 0.11 | (1.15) | (1.04) | (0.32) | (0.13) | (0.45) | $8.96 | (10.62)% | 1.56%(4) | 1.56%(4) | 1.35%(4) | 1.35%(4) | 68%(7) | $4 | |
R Class | | | | | | | | | | | | | | | |
2021(3) | $8.93 | 0.10 | 1.77 | 1.87 | (0.08) | — | (0.08) | $10.72 | 20.94% | 1.80%(4) | 1.80%(4) | 1.28%(4) | 1.28%(4) | 28% | $27 | |
2020(6) | $10.45 | 0.09 | (1.16) | (1.07) | (0.32) | (0.13) | (0.45) | $8.93 | (10.93)% | 1.81%(4) | 1.81%(4) | 1.10%(4) | 1.10%(4) | 68%(7) | $6 | |
R6 Class | | | | | | | | | | | | | | |
2021(3) | $9.14 | 0.10 | 1.83 | 1.93 | (0.15) | — | (0.15) | $10.92 | 21.36% | 0.95%(4) | 0.95%(4) | 2.13%(4) | 2.13%(4) | 28% | $5 | |
2020(6) | $10.60 | 0.16 | (1.16) | (1.00) | (0.33) | (0.13) | (0.46) | $9.14 | (10.12)% | 0.96%(4) | 0.96%(4) | 1.95%(4) | 1.95%(4) | 68%(7) | $4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | | | | | |
Per-Share Data | | | | | | | Ratios and Supplemental Data |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
G Class | | | | | | | | | | | | | | | |
2021(3) | $9.11 | 0.15 | 1.81 | 1.96 | (0.24) | — | (0.24) | $10.83 | 21.93% | 0.00%(4)(8) | 0.95%(4) | 3.08%(4) | 2.13%(4) | 28% | $533,665 | |
2020 | $10.76 | 0.24 | (1.29) | (1.05) | (0.47) | (0.13) | (0.60) | $9.11 | (10.58)% | 0.01% | 0.96% | 2.90% | 1.95% | 68% | $463,081 | |
2019(5) | $10.00 | 0.43 | 0.37 | 0.80 | (0.04) | — | (0.04) | $10.76 | 8.00% | 0.01%(4) | 0.96%(4) | 4.34%(4) | 3.39%(4) | 85% | $264,529 | |
| | |
Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)Six months ended May 28, 2021 (unaudited).
(4)Annualized.
(5)December 6, 2018 (fund inception) through November 30, 2019.
(6)December 3, 2019 (commencement of sale) through November 30, 2020 .
(7)Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2020.
(8)Ratio was less than 0.005%.
See Notes to Financial Statements.
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Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2019 through December 31, 2020. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century Investments’ website at americancentury.com/proxy and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
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American Century World Mutual Funds, Inc. | |
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Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |
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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. | |
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©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-95206 2107 | |
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| Semiannual Report |
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| May 28, 2021 |
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| NT Emerging Markets Fund |
| G Class (ACLKX) |
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Fund Characteristics | |
Shareholder Fee Example | |
Schedule of Investments | |
Statement of Assets and Liabilities | |
Statement of Operations | |
Statement of Changes in Net Assets | |
Notes to Financial Statements | |
Financial Highlights | |
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Liquidity Risk Management Program | |
Additional Information | |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
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MAY 28, 2021 |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 98.3% |
Rights | —* |
Temporary Cash Investments | 1.8% |
Temporary Cash Investments - Securities Lending Collateral | 0.1% |
Other Assets and Liabilities | (0.2)% |
*Category is less than 0.05% of total net assets. | |
| |
Top Five Countries | % of net assets |
China | 29.4% |
South Korea | 15.7% |
Taiwan | 14.7% |
India | 10.1% |
Brazil | 7.6% |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2020 to May 28, 2021.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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| Beginning Account Value 12/1/20 | Ending Account Value 5/28/21 | Expenses Paid During Period(1) 12/1/20 - 5/28/21 | Annualized Expense Ratio(1) |
Actual | | | | |
G Class | $1,000 | $1,131.30 | $0.10 | 0.02% |
Hypothetical | | | | |
G Class | $1,000 | $1,024.42 | $0.10 | 0.02% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 179, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
MAY 28, 2021 (UNAUDITED)
| | | | | | | | |
| Shares | Value |
COMMON STOCKS — 98.3% | | |
Argentina — 1.0% | | |
Globant SA(1) | 38,658 | | $ | 8,422,419 | |
Brazil — 7.6% | | |
Banco BTG Pactual SA | 385,300 | | 9,063,795 | |
Embraer SA, ADR(1) | 404,900 | | 5,421,611 | |
Gerdau SA, Preference Shares | 1,760,000 | | 11,022,584 | |
Locaweb Servicos de Internet SA | 950,240 | | 4,789,763 | |
Magazine Luiza SA | 1,164,252 | | 4,537,091 | |
Randon SA Implementos e Participacoes, Preference Shares | 1,214,700 | | 3,456,454 | |
Suzano SA(1) | 590,000 | | 6,973,540 | |
Vale SA, ADR | 829,493 | | 17,850,689 | |
| | 63,115,527 | |
China — 29.4% | | |
Alibaba Group Holding Ltd., ADR(1) | 169,783 | | 36,326,771 | |
Anhui Conch Cement Co. Ltd., H Shares | 545,500 | | 3,377,162 | |
Baoshan Iron & Steel Co. Ltd., A Shares | 1,982,900 | | 2,458,361 | |
China Construction Bank Corp., H Shares | 13,309,000 | | 10,965,639 | |
China Education Group Holdings Ltd. | 2,421,000 | | 6,115,710 | |
China Gas Holdings Ltd. | 1,064,000 | | 4,046,734 | |
China Tourism Group Duty Free Corp. Ltd., A Shares | 229,787 | | 12,468,511 | |
CIFI Holdings Group Co. Ltd. | 9,235,557 | | 8,048,133 | |
Contemporary Amperex Technology Co. Ltd., A Shares | 108,698 | | 7,002,963 | |
Country Garden Services Holdings Co. Ltd. | 843,000 | | 8,554,082 | |
Ganfeng Lithium Co. Ltd., H Shares(2) | 610,000 | | 8,204,041 | |
GDS Holdings Ltd., ADR(1) | 79,643 | | 5,990,747 | |
Industrial & Commercial Bank of China Ltd., H Shares | 6,173,095 | | 4,052,695 | |
Kweichow Moutai Co. Ltd., A Shares | 25,900 | | 9,089,622 | |
Li Ning Co. Ltd. | 962,000 | | 8,844,436 | |
Meituan, Class B(1) | 277,600 | | 9,729,788 | |
New Oriental Education & Technology Group, Inc., ADR(1) | 383,638 | | 3,924,617 | |
Nine Dragons Paper Holdings Ltd. | 4,732,000 | | 7,469,606 | |
Ping An Insurance Group Co. of China Ltd., H Shares | 617,000 | | 6,739,596 | |
Sany Heavy Industry Co. Ltd., A Shares | 910,700 | | 4,377,237 | |
Shenzhou International Group Holdings Ltd. | 338,000 | | 8,909,818 | |
TAL Education Group, ADR(1) | 80,953 | | 3,235,691 | |
Tencent Holdings Ltd. | 647,300 | | 50,606,493 | |
Wuxi Biologics Cayman, Inc.(1) | 843,500 | | 12,518,535 | |
| | 243,056,988 | |
Hungary — 1.4% | | |
OTP Bank Nyrt(1) | 207,852 | | 11,409,329 | |
India — 10.1% | | |
Asian Paints Ltd. | 117,276 | | 4,757,210 | |
Bajaj Finance Ltd.(1) | 83,146 | | 6,426,237 | |
Bata India Ltd. | 170,708 | | 3,638,577 | |
HDFC Bank Ltd.(1) | 878,084 | | 18,215,383 | |
ICICI Bank Ltd., ADR(1) | 657,161 | | 11,835,470 | |
Indraprastha Gas Ltd. | 516,779 | | 3,660,558 | |
| | | | | | | | |
| Shares | Value |
Infosys Ltd., ADR | 531,806 | | $ | 10,285,128 | |
Jubilant Foodworks Ltd.(1) | 184,066 | | 7,918,412 | |
Tata Consultancy Services Ltd. | 162,660 | | 7,050,708 | |
UltraTech Cement Ltd. | 109,921 | | 10,005,099 | |
| | 83,792,782 | |
Indonesia — 1.7% | | |
Bank Rakyat Indonesia Persero Tbk PT | 36,478,600 | | 10,394,239 | |
Telekomunikasi Indonesia Persero Tbk PT | 15,772,800 | | 3,616,355 | |
| | 14,010,594 | |
Luxembourg — 0.6% | | |
Ternium SA, ADR | 127,223 | | 4,657,634 | |
Mexico — 3.7% | | |
Cemex SAB de CV, ADR(1) | 1,864,108 | | 15,434,815 | |
Grupo Financiero Banorte SAB de CV | 1,576,923 | | 10,756,138 | |
Wal-Mart de Mexico SAB de CV | 1,333,853 | | 4,258,445 | |
| | 30,449,398 | |
Philippines — 0.5% | | |
Ayala Land, Inc. | 5,736,280 | | 4,139,131 | |
Russia — 3.4% | | |
Novatek PJSC, GDR | 33,751 | | 6,718,881 | |
Sberbank of Russia PJSC, ADR (London) | 557,105 | | 9,378,245 | |
Yandex NV, A Shares(1) | 176,482 | | 11,919,594 | |
| | 28,016,720 | |
Saudi Arabia — 0.9% | | |
Al Rajhi Bank | 277,619 | | 7,631,607 | |
Singapore — 0.5% | | |
Sea Ltd., ADR(1) | 16,018 | | 4,056,398 | |
South Africa — 4.7% | | |
Capitec Bank Holdings Ltd. | 65,663 | | 7,881,359 | |
Kumba Iron Ore Ltd.(2) | 163,564 | | 7,287,897 | |
Naspers Ltd., N Shares | 108,112 | | 23,830,795 | |
| | 39,000,051 | |
South Korea — 15.7% | | |
CJ Logistics Corp.(1) | 43,713 | | 6,663,309 | |
Cosmax, Inc.(1) | 35,804 | | 4,040,976 | |
Hyundai Motor Co. | 65,301 | | 13,552,451 | |
LG Chem Ltd. | 9,920 | | 7,392,745 | |
Mando Corp.(1) | 146,565 | | 8,511,415 | |
NAVER Corp. | 37,423 | | 12,006,938 | |
Samsung Biologics Co. Ltd.(1) | 8,879 | | 6,590,732 | |
Samsung Electro-Mechanics Co. Ltd. | 76,446 | | 11,516,466 | |
Samsung Electronics Co. Ltd. | 564,193 | | 40,497,911 | |
Samsung SDI Co. Ltd. | 18,029 | | 10,347,977 | |
SK Hynix, Inc. | 81,274 | | 9,112,528 | |
| | 130,233,448 | |
Taiwan — 14.7% | | |
ASPEED Technology, Inc. | 96,000 | | 7,618,084 | |
Chailease Holding Co. Ltd. | 2,387,819 | | 18,034,700 | |
Formosa Plastics Corp. | 1,476,000 | | 5,399,218 | |
MediaTek, Inc. | 347,000 | | 11,987,838 | |
Merida Industry Co. Ltd. | 477,000 | | 5,517,732 | |
President Chain Store Corp. | 358,000 | | 3,383,070 | |
| | | | | | | | |
| Shares | Value |
Taiwan Semiconductor Manufacturing Co. Ltd. | 3,115,774 | | $ | 66,154,653 | |
Win Semiconductors Corp. | 325,000 | | 3,812,615 | |
| | 121,907,910 | |
Thailand — 2.0% | | |
CP ALL PCL | 2,552,800 | | 4,958,886 | |
Muangthai Capital PCL | 1,938,900 | | 3,809,555 | |
PTT Exploration & Production PCL | 2,146,500 | | 8,060,816 | |
| | 16,829,257 | |
Turkey — 0.4% | | |
BIM Birlesik Magazalar AS | 476,148 | | 3,573,117 | |
TOTAL COMMON STOCKS (Cost $530,691,727) | | 814,302,310 | |
RIGHTS† | | |
South Korea† | | |
Cosmax, Inc.(1) (Cost $—) | 3,706 | 76,426 | |
TEMPORARY CASH INVESTMENTS — 1.8% | | |
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.75%, 5/15/25 - 8/15/47, valued at $3,217,678), in a joint trading account at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $3,149,047) | | 3,149,047 | |
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.375%, 11/15/48, valued at $5,353,025), at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $5,248,000) | | 5,248,000 | |
State Street Institutional U.S. Government Money Market Fund, Premier Class | 6,349,402 | | 6,349,402 | |
TOTAL TEMPORARY CASH INVESTMENTS (Cost $14,746,449) | | 14,746,449 | |
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 0.1% |
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $1,154,206) | 1,154,206 | 1,154,206 | |
TOTAL INVESTMENT SECURITIES — 100.2% (Cost $546,592,382) | | 830,279,391 | |
OTHER ASSETS AND LIABILITIES — (0.2)% | | (1,677,040) | |
TOTAL NET ASSETS — 100.0% | | $ | 828,602,351 | |
| | | | | |
MARKET SECTOR DIVERSIFICATION |
(as a % of net assets) | |
Information Technology | 23.8 | % |
Consumer Discretionary | 19.0 | % |
Financials | 17.6 | % |
Materials | 13.6 | % |
Communication Services | 10.0 | % |
Industrials | 4.3 | % |
Consumer Staples | 3.5 | % |
Health Care | 2.3 | % |
Energy | 1.8 | % |
Real Estate | 1.5 | % |
Utilities | 0.9 | % |
Temporary Cash Investments | 1.8 | % |
Temporary Cash Investments - Securities Lending Collateral | 0.1 | % |
Other Assets and Liabilities | (0.2) | % |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS |
ADR | - | American Depositary Receipt |
GDR | - | Global Depositary Receipt |
†Category is less than 0.05% of total net assets.
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $13,899,152. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $15,592,741, which includes securities collateral of $14,438,535.
| | |
Statement of Assets and Liabilities |
| | | | | |
MAY 28, 2021 (UNAUDITED) |
Assets |
Investment securities, at value (cost of $545,438,176) — including $13,899,152 of securities on loan | $ | 829,125,185 | |
Investment made with cash collateral received for securities on loan, at value (cost of $1,154,206) | 1,154,206 | |
Total investment securities, at value (cost of $546,592,382) | 830,279,391 | |
Receivable for capital shares sold | 336 | |
Dividends and interest receivable | 970,263 | |
Securities lending receivable | 4,887 | |
Other assets | 13,342 | |
| 831,268,219 | |
| |
Liabilities | |
Payable for collateral received for securities on loan | 1,154,206 | |
Payable for capital shares redeemed | 116,055 | |
Accrued foreign taxes | 1,395,607 | |
| 2,665,868 | |
| |
Net Assets | $ | 828,602,351 | |
| |
G Class Capital Shares, $0.01 Par Value | |
Shares authorized | 510,000,000 | |
Shares outstanding | 53,365,198 | |
| |
Net Asset Value Per Share | $ | 15.53 | |
| |
Net Assets Consist of: | |
Capital (par value and paid-in surplus) | $ | 525,394,290 | |
Distributable earnings | 303,208,061 | |
| $ | 828,602,351 | |
See Notes to Financial Statements.
| | | | | |
FOR THE SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) |
Investment Income (Loss) |
Income: | |
Dividends (net of foreign taxes withheld of $801,499) | $ | 5,692,978 | |
Securities lending, net | 27,356 | |
Interest | 458 | |
| 5,720,792 | |
| |
Expenses: | |
Management fees | 3,556,290 | |
Directors' fees and expenses | 10,124 | |
Other expenses | 63,565 | |
| 3,629,979 | |
Fees waived | (3,556,290) | |
| 73,689 | |
| |
Net investment income (loss) | 5,647,103 | |
| |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on: | |
Investment transactions (net of foreign tax expenses paid (refunded) of $(498)) | 39,592,420 | |
Foreign currency translation transactions | (488,672) | |
| 39,103,748 | |
| |
Change in net unrealized appreciation (depreciation) on: | |
Investments (includes (increase) decrease in accrued foreign taxes of $(409,827)) | 53,251,974 | |
Translation of assets and liabilities in foreign currencies | (666) | |
| 53,251,308 | |
| |
Net realized and unrealized gain (loss) | 92,355,056 | |
| |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 98,002,159 | |
See Notes to Financial Statements.
| | |
Statement of Changes in Net Assets |
| | | | | | | | |
SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2020 |
Increase (Decrease) in Net Assets | May 28, 2021 | November 30, 2020 |
Operations | | |
Net investment income (loss) | $ | 5,647,103 | | $ | 7,314,453 | |
Net realized gain (loss) | 39,103,748 | | 5,064,654 | |
Change in net unrealized appreciation (depreciation) | 53,251,308 | | 117,285,476 | |
Net increase (decrease) in net assets resulting from operations | 98,002,159 | | 129,664,583 | |
| | |
Distributions to Shareholders | | |
From earnings | (13,098,155) | | (12,202,414) | |
| | |
Capital Share Transactions | | |
Proceeds from shares sold | 104,043,031 | | 344,526,986 | |
Proceeds from reinvestment of distributions | 13,098,155 | | 12,202,414 | |
Payments for shares redeemed | (104,191,365) | | (175,438,606) | |
Net increase (decrease) in net assets from capital share transactions | 12,949,821 | | 181,290,794 | |
| | |
Net increase (decrease) in net assets | 97,853,825 | | 298,752,963 | |
| | |
Net Assets | | |
Beginning of period | 730,748,526 | | 431,995,563 | |
End of period | $ | 828,602,351 | | $ | 730,748,526 | |
| | |
| | |
Transactions in Shares of the Fund | | |
Sold | 6,780,576 | | 27,860,321 | |
Issued in reinvestment of distributions | 911,493 | | 1,032,353 | |
Redeemed | (6,616,684) | | (14,097,357) | |
Net increase (decrease) in shares of the fund | 1,075,385 | | 14,795,317 | |
See Notes to Financial Statements.
| | |
Notes to Financial Statements |
MAY 28, 2021 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. NT Emerging Markets Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital growth. The fund offers the G Class.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value (NAV) per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported NAV per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 28, 2021.
| | | | | | | | | | | | | | | | | |
Remaining Contractual Maturity of Agreements |
| Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total |
Securities Lending Transactions(1) | | | | |
Common Stocks | $ | 1,154,206 | | — | | — | | — | | $ | 1,154,206 | |
Gross amount of recognized liabilities for securities lending transactions | $ | 1,154,206 | |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc., and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 51% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee). The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses. The fee is computed and accrued daily based on the daily net assets of the fund and paid monthly in arrears. The annual management fee is 0.90%. The investment advisor agreed to waive the fund's management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors. The annual management fee for the period ended May 28, 2021 was 0.00% after waiver.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. There were no interfund transactions during the period.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 28, 2021 were $228,951,582 and $233,521,844, respectively.
5. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
| | | | | | | | | | | |
| Level 1 | Level 2 | Level 3 |
Assets | | | |
Investment Securities | | | |
Common Stocks | | | |
Argentina | $ | 8,422,419 | | — | | — | |
Brazil | 23,272,300 | | $ | 39,843,227 | | — | |
China | 49,477,826 | | 193,579,162 | | — | |
India | 22,120,598 | | 61,672,184 | | — | |
Luxembourg | 4,657,634 | | — | | — | |
Mexico | 15,434,815 | | 15,014,583 | | — | |
Russia | 11,919,594 | | 16,097,126 | | — | |
Singapore | 4,056,398 | | — | | — | |
Other Countries | — | | 348,734,444 | | — | |
Rights | — | | 76,426 | | — | |
Temporary Cash Investments | 6,349,402 | | 8,397,047 | | — | |
Temporary Cash Investments - Securities Lending Collateral | 1,154,206 | | — | | — | |
| $ | 146,865,192 | | $ | 683,414,199 | | — | |
6. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund is owned by a relatively small number of shareholders, and in the event such shareholders redeem, the ongoing operations of the fund may be at risk.
7. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
| | | | | |
Federal tax cost of investments | $ | 548,049,195 | |
Gross tax appreciation of investments | $ | 288,361,124 | |
Gross tax depreciation of investments | (6,130,928) | |
Net tax appreciation (depreciation) of investments | $ | 282,230,196 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2020, the fund had accumulated short-term capital losses of $(15,840,315), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) |
Per-Share Data | | | | | | Ratios and Supplemental Data | | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
G Class | | | | | | | | | | | | |
2021(3) | $13.97 | 0.11 | 1.70 | 1.81 | (0.25) | — | (0.25) | $15.53 | 13.13% | 0.02%(4) | 0.92%(4) | 1.43%(4) | 0.53%(4) | 30% | $828,602 | |
2020 | $11.52 | 0.18 | 2.60 | 2.78 | (0.33) | — | (0.33) | $13.97 | 24.62% | 0.02% | 0.92% | 1.50% | 0.60% | 61% | $730,749 | |
2019 | $11.19 | 0.31 | 0.94 | 1.25 | (0.15) | (0.77) | (0.92) | $11.52 | 12.54% | 0.01% | 0.91% | 2.80% | 1.90% | 50% | $431,996 | |
2018 | $14.54 | 0.23 | (2.00) | (1.77) | (0.14) | (1.44) | (1.58) | $11.19 | (13.75)% | 0.01% | 0.95% | 1.78% | 0.84% | 66% | $402,978 | |
2017 | $10.27 | 0.09 | 4.26 | 4.35 | (0.08) | — | (0.08) | $14.54 | 42.75% | 0.69% | 1.25% | 0.74% | 0.18% | 56% | $481,494 | |
2016 | $9.75 | 0.05 | 0.50 | 0.55 | (0.03) | — | (0.03) | $10.27 | 5.68% | 1.18% | 1.18% | 0.53% | 0.53% | 75% | $394,433 | |
| | |
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. Total returns for periods less than one year are not annualized.
(3)Six months ended May 28, 2021 (unaudited).
(4)Annualized.
See Notes to Financial Statements.
| | |
Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2019 through December 31, 2020. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century Investments’ website at americancentury.com/proxy and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
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American Century World Mutual Funds, Inc. | |
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Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |
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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. | |
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©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92626 2107 | |
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| Semiannual Report |
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| May 28, 2021 |
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| NT International Growth Fund |
| G Class (ACLNX) |
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Fund Characteristics | |
Shareholder Fee Example | |
Schedule of Investments | |
Statement of Assets and Liabilities | |
Statement of Operations | |
Statement of Changes in Net Assets | |
Notes to Financial Statements | |
Financial Highlights | |
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Liquidity Risk Management Program | |
Additional Information | |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
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MAY 28, 2021 | |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 98.4% |
Temporary Cash Investments | 2.0% |
Temporary Cash Investments - Securities Lending Collateral | 0.9% |
Other Assets and Liabilities | (1.3)% |
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Top Five Countries | % of net assets |
France | 16.1% |
Japan | 11.7% |
United Kingdom | 11.6% |
Netherlands | 6.2% |
Germany | 5.9% |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2020 to May 28, 2021.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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| Beginning Account Value 12/1/20 | Ending Account Value 5/28/21 | Expenses Paid During Period(1) 12/1/20 - 5/28/21 | Annualized Expense Ratio(1) |
Actual | | | | |
G Class | $1,000 | $1,128.20 | $0.05 | 0.01% |
Hypothetical | | | | |
G Class | $1,000 | $1,024.47 | $0.05 | 0.01% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 179, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
MAY 28, 2021 (UNAUDITED)
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| Shares | Value |
COMMON STOCKS — 98.4% | | |
Australia — 2.2% | | |
Atlassian Corp. plc, Class A(1) | 36,690 | | $ | 8,559,043 | |
CSL Ltd. | 107,820 | | 24,080,950 | |
| | 32,639,993 | |
Belgium — 1.5% | | |
KBC Group NV | 274,960 | | 22,509,251 | |
Brazil — 0.6% | | |
Magazine Luiza SA | 2,264,396 | | 8,824,353 | |
Canada — 4.8% | | |
Canada Goose Holdings, Inc.(1)(2) | 261,250 | | 10,551,209 | |
Canadian Pacific Railway Ltd. | 221,100 | | 17,954,480 | |
First Quantum Minerals Ltd. | 646,670 | | 16,085,786 | |
GFL Environmental, Inc.(2) | 299,902 | | 9,758,811 | |
Shopify, Inc., Class A(1) | 5,950 | | 7,399,858 | |
Toronto-Dominion Bank (The) | 154,800 | | 11,157,184 | |
| | 72,907,328 | |
China — 3.1% | | |
ANTA Sports Products Ltd. | 450,000 | | 9,083,808 | |
GDS Holdings Ltd., ADR(1) | 95,770 | | 7,203,819 | |
Huazhu Group Ltd., ADR(1) | 150,340 | | 8,594,938 | |
Tencent Holdings Ltd. | 77,600 | | 6,066,837 | |
Tencent Music Entertainment Group, ADR(1) | 326,280 | | 5,135,647 | |
Wuxi Biologics Cayman, Inc.(1) | 754,000 | | 11,190,250 | |
| | 47,275,299 | |
Denmark — 3.7% | | |
Carlsberg A/S, B Shares | 98,470 | | 18,085,663 | |
DSV Panalpina A/S | 49,590 | | 12,089,517 | |
Novo Nordisk A/S, B Shares | 256,950 | | 20,285,151 | |
Orsted AS | 39,940 | | 6,107,985 | |
| | 56,568,316 | |
Finland — 1.2% | | |
Neste Oyj | 282,270 | | 18,617,624 | |
France — 16.1% | | |
Air Liquide SA | 114,630 | | 19,494,675 | |
Airbus SE(1) | 104,670 | | 13,752,180 | |
Capgemini SE | 115,890 | | 21,667,925 | |
Dassault Systemes SE | 62,100 | | 14,263,497 | |
Edenred(2) | 317,026 | | 17,459,379 | |
Iliad SA | 40,450 | | 6,641,392 | |
L'Oreal SA | 20,480 | | 9,271,696 | |
LVMH Moet Hennessy Louis Vuitton SE | 46,270 | | 37,063,763 | |
Pernod Ricard SA | 61,670 | | 13,615,162 | |
Safran SA | 158,970 | | 24,037,817 | |
Schneider Electric SE | 165,830 | | 26,393,444 | |
Teleperformance | 50,230 | | 19,245,389 | |
Valeo SA | 359,320 | | 11,806,664 | |
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| Shares | Value |
Vivendi SE | 247,680 | | $ | 9,020,383 | |
| | 243,733,366 | |
Germany — 5.9% | | |
Brenntag SE | 67,950 | | 6,381,442 | |
Daimler AG | 208,490 | | 19,451,636 | |
Infineon Technologies AG | 445,102 | | 17,998,566 | |
Knorr-Bremse AG | 70,122 | | 8,716,952 | |
Muenchener Rueckversicherungs-Gesellschaft AG | 42,960 | | 12,365,561 | |
Puma SE | 166,420 | | 19,020,830 | |
Zalando SE(1) | 55,780 | | 5,957,973 | |
| | 89,892,960 | |
Hong Kong — 3.5% | | |
AIA Group Ltd. | 2,066,200 | | 27,576,142 | |
Sands China Ltd.(1) | 1,450,000 | | 6,626,354 | |
Techtronic Industries Co. Ltd. | 1,001,000 | | 18,842,962 | |
| | 53,045,458 | |
India — 1.1% | | |
HDFC Bank Ltd.(1) | 818,370 | | 16,976,649 | |
Indonesia — 0.5% | | |
Bank Central Asia Tbk PT | 3,666,700 | | 8,131,761 | |
Ireland — 4.4% | | |
CRH plc | 351,990 | | 18,415,031 | |
ICON plc(1) | 62,360 | | 13,953,674 | |
Kerry Group plc, A Shares | 117,530 | | 15,902,079 | |
Ryanair Holdings plc, ADR(1) | 150,770 | | 17,602,397 | |
| | 65,873,181 | |
Israel — 0.4% | | |
Kornit Digital Ltd.(1) | 50,970 | | 5,311,074 | |
Italy — 2.7% | | |
Ferrari NV | 62,160 | | 13,106,968 | |
Prysmian SpA | 160,340 | | 5,535,701 | |
Stellantis NV | 1,138,814 | | 22,279,692 | |
| | 40,922,361 | |
Japan — 11.7% | | |
FANUC Corp. | 75,300 | | 18,052,447 | |
Hoya Corp. | 123,500 | | 16,228,059 | |
Keyence Corp. | 52,700 | | 26,050,419 | |
Kobe Bussan Co. Ltd. | 243,400 | | 6,182,047 | |
MonotaRO Co. Ltd. | 483,400 | | 11,262,255 | |
Obic Co. Ltd. | 76,700 | | 14,368,125 | |
Olympus Corp. | 519,900 | | 11,076,028 | |
Pan Pacific International Holdings Corp. | 529,700 | | 10,592,939 | |
Recruit Holdings Co. Ltd. | 584,600 | | 29,964,269 | |
Sony Group Corp. | 225,600 | | 22,432,881 | |
Terumo Corp. | 304,600 | | 11,759,463 | |
| | 177,968,932 | |
Mexico — 1.0% | | |
Cemex SAB de CV, ADR(1) | 1,872,890 | | 15,507,529 | |
Netherlands — 6.2% | | |
Adyen NV(1) | 10,084 | | 23,339,037 | |
Akzo Nobel NV | 35,170 | | 4,490,307 | |
ASML Holding NV | 65,090 | | 43,974,149 | |
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| Shares | Value |
ING Groep NV | 1,569,090 | | $ | 21,956,432 | |
| | 93,759,925 | |
Singapore — 0.9% | | |
Sea Ltd., ADR(1) | 56,700 | | 14,358,708 | |
Spain — 5.2% | | |
Amadeus IT Group SA(1) | 264,211 | | 19,936,394 | |
CaixaBank SA | 4,144,350 | | 14,368,054 | |
Cellnex Telecom SA | 358,022 | | 21,719,661 | |
Iberdrola SA | 1,640,768 | | 22,616,330 | |
| | 78,640,439 | |
Sweden — 3.4% | | |
Epiroc AB, A Shares | 502,060 | | 11,452,361 | |
Epiroc AB(1) | 502,060 | | 181,075 | |
Hexagon AB, B Shares | 1,321,460 | | 18,912,895 | |
Telefonaktiebolaget LM Ericsson, B Shares | 1,510,060 | | 20,253,781 | |
| | 50,800,112 | |
Switzerland — 5.6% | | |
Lonza Group AG | 32,030 | | 20,706,076 | |
Partners Group Holding AG | 13,410 | | 20,240,452 | |
Sika AG | 61,286 | | 19,731,643 | |
Zur Rose Group AG(1) | 26,730 | | 10,034,307 | |
Zurich Insurance Group AG | 31,880 | | 13,408,752 | |
| | 84,121,230 | |
Taiwan — 0.8% | | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 602,000 | | 12,781,768 | |
Thailand — 0.3% | | |
Kasikornbank PCL, NVDR | 1,304,800 | | 4,987,140 | |
United Kingdom — 11.6% | | |
Ashtead Group plc | 361,680 | | 26,383,692 | |
ASOS plc(1) | 295,116 | | 20,409,033 | |
Associated British Foods plc(1) | 365,830 | | 12,016,662 | |
AstraZeneca plc | 285,550 | | 32,545,159 | |
Barratt Developments plc | 774,430 | | 8,288,600 | |
Burberry Group plc(1) | 150,830 | | 4,563,842 | |
Carnival plc(1) | 323,440 | | 8,100,080 | |
Ferguson plc | 22,655 | | 3,076,777 | |
Halma plc | 214,620 | | 7,921,917 | |
HSBC Holdings plc | 4,544,400 | | 29,504,792 | |
Ocado Group plc(1) | 153,408 | | 4,104,421 | |
Whitbread plc(1) | 402,660 | | 18,135,351 | |
| | 175,050,326 | |
TOTAL COMMON STOCKS (Cost $1,028,745,100) | | 1,491,205,083 | |
TEMPORARY CASH INVESTMENTS — 2.0% | | |
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.75%, 5/15/25 - 8/15/47, valued at $6,608,443), in a joint trading account at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $6,467,488) | | 6,467,488 | |
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.375%, 11/15/48, valued at $10,995,626), at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $10,780,000) | | 10,780,000 | |
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| Shares | Value |
State Street Institutional U.S. Government Money Market Fund, Premier Class | 13,040,354 | | $ | 13,040,354 | |
TOTAL TEMPORARY CASH INVESTMENTS (Cost $30,287,842) | | 30,287,842 | |
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 0.9% |
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $12,998,903) | 12,998,903 | 12,998,903 | |
TOTAL INVESTMENT SECURITIES — 101.3% (Cost $1,072,031,845) | | 1,534,491,828 | |
OTHER ASSETS AND LIABILITIES — (1.3)% | | (19,516,599) | |
TOTAL NET ASSETS — 100.0% | | $ | 1,514,975,229 | |
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MARKET SECTOR DIVERSIFICATION | |
(as a % of net assets) | |
Industrials | 19.0% |
Information Technology | 18.5% |
Consumer Discretionary | 17.8% |
Financials | 13.4% |
Health Care | 10.7% |
Materials | 6.2% |
Consumer Staples | 5.7% |
Communication Services | 4.0% |
Utilities | 1.9% |
Energy | 1.2% |
Temporary Cash Investments | 2.0% |
Temporary Cash Investments - Securities Lending Collateral | 0.9% |
Other Assets and Liabilities | (1.3)% |
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NOTES TO SCHEDULE OF INVESTMENTS |
ADR | - | American Depositary Receipt |
NVDR | - | Non-Voting Depositary Receipt |
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $12,699,474. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $13,212,367, which includes securities collateral of $213,464.
See Notes to Financial Statements.
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Statement of Assets and Liabilities |
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MAY 28, 2021 (UNAUDITED) |
Assets | |
Investment securities, at value (cost of $1,059,032,942) — including $12,699,474 of securities on loan | $ | 1,521,492,925 | |
Investment made with cash collateral received for securities on loan, at value (cost of $12,998,903) | 12,998,903 | |
Total investment securities, at value (cost of $1,072,031,845) | 1,534,491,828 | |
Receivable for investments sold | 8,563,121 | |
Receivable for capital shares sold | 3,482 | |
Dividends and interest receivable | 3,442,899 | |
Securities lending receivable | 5,045 | |
Other assets | 11,444 | |
| 1,546,517,819 | |
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Liabilities | |
Payable for collateral received for securities on loan | 12,998,903 | |
Payable for investments purchased | 15,363,581 | |
Payable for capital shares redeemed | 2,363,809 | |
Accrued foreign taxes | 799,276 | |
Accrued other expenses | 17,021 | |
| 31,542,590 | |
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Net Assets | $ | 1,514,975,229 | |
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G Class Capital Shares, $0.01 Par Value | |
Shares authorized | 1,000,000,000 | |
Shares outstanding | 99,217,269 | |
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Net Asset Value Per Share | $ | 15.27 | |
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Net Assets Consist of: | |
Capital (par value and paid-in surplus) | $ | 971,805,661 | |
Distributable earnings | 543,169,568 | |
| $ | 1,514,975,229 | |
See Notes to Financial Statements.
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FOR THE SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) |
Investment Income (Loss) | |
Income: | |
Dividends (net of foreign taxes withheld of $1,180,677) | $ | 11,063,758 | |
Interest | 20,734 | |
Securities lending, net | 18,518 | |
| 11,103,010 | |
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Expenses: | |
Management fees | 5,874,700 | |
Directors' fees and expenses | 18,133 | |
Other expenses | 62,982 | |
| 5,955,815 | |
Fees waived | (5,874,700) | |
| 81,115 | |
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Net investment income (loss) | 11,021,895 | |
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Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on: | |
Investment transactions (net of foreign tax expenses paid (refunded) of $19,140) | 74,674,508 | |
Foreign currency translation transactions | (160,010) | |
| 74,514,498 | |
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Change in net unrealized appreciation (depreciation) on: | |
Investments (includes (increase) decrease in accrued foreign taxes of $(29,640)) | 86,480,695 | |
Translation of assets and liabilities in foreign currencies | 32,334 | |
| 86,513,029 | |
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Net realized and unrealized gain (loss) | 161,027,527 | |
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Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 172,049,422 | |
See Notes to Financial Statements.
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Statement of Changes in Net Assets |
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SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2020 |
Increase (Decrease) in Net Assets | May 28, 2021 | November 30, 2020 |
Operations | | |
Net investment income (loss) | $ | 11,021,895 | | $ | 10,208,268 | |
Net realized gain (loss) | 74,514,498 | | 33,771,309 | |
Change in net unrealized appreciation (depreciation) | 86,513,029 | | 186,598,763 | |
Net increase (decrease) in net assets resulting from operations | 172,049,422 | | 230,578,340 | |
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Distributions to Shareholders | | |
From earnings | (43,138,573) | | (21,446,973) | |
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Capital Share Transactions | | |
Proceeds from shares sold | 96,379,251 | | 592,376,460 | |
Proceeds from reinvestment of distributions | 43,138,573 | | 21,446,973 | |
Payments for shares redeemed | (92,459,716) | | (311,099,401) | |
Net increase (decrease) in net assets from capital share transactions | 47,058,108 | | 302,724,032 | |
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Net increase (decrease) in net assets | 175,968,957 | | 511,855,399 | |
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Net Assets | | |
Beginning of period | 1,339,006,272 | | 827,150,873 | |
End of period | $ | 1,514,975,229 | | $ | 1,339,006,272 | |
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Transactions in Shares of the Fund | | |
Sold | 6,680,138 | | 47,489,240 | |
Issued in reinvestment of distributions | 3,119,203 | | 1,918,957 | |
Redeemed | (6,361,553) | | (26,379,155) | |
Net increase (decrease) in shares of the fund | 3,437,788 | | 23,029,042 | |
See Notes to Financial Statements.
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Notes to Financial Statements |
MAY 28, 2021 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. NT International Growth Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek capital growth. The fund offers the G Class.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value (NAV) per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported NAV per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 28, 2021.
| | | | | | | | | | | | | | | | | |
Remaining Contractual Maturity of Agreements |
| Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total |
Securities Lending Transactions(1) | | | | |
Common Stocks | $ | 12,998,903 | | — | | — | | — | | $ | 12,998,903 | |
Gross amount of recognized liabilities for securities lending transactions | $ | 12,998,903 | |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc., and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 54% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees —The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee). The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses. The fee is computed and accrued daily based on the daily net assets of the fund and paid monthly in arrears. The rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account the fund’s assets as well as certain assets, if any, of other clients of the investment advisor outside the American Century Investments family of funds (such as subadvised funds and separate accounts) that use very similar investment teams and strategies (strategy assets). The strategy assets of the fund also include the assets of International Growth Fund, one fund in a series issued by the corporation. The management fee schedule ranges from 0.700% to 1.150%. The investment advisor agreed to waive the fund’s management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors. The effective annual management fee for the period ended May 28, 2021 was 0.83% before waiver and 0.00% after waiver.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund sales were $27,801 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $(488) in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 28, 2021 were $356,527,776 and $330,608,545, respectively.
5. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
| | | | | | | | | | | |
| Level 1 | Level 2 | Level 3 |
Assets | | | |
Investment Securities | | | |
Common Stocks | | | |
Australia | $ | 8,559,043 | | $ | 24,080,950 | | — | |
Canada | 9,758,811 | | 63,148,517 | | — | |
China | 20,934,404 | | 26,340,895 | | — | |
Ireland | 31,556,071 | | 34,317,110 | | — | |
Israel | 5,311,074 | | — | | — | |
Mexico | 15,507,529 | | — | | — | |
Singapore | 14,358,708 | | — | | — | |
Other Countries | — | | 1,237,331,971 | | — | |
Temporary Cash Investments | 13,040,354 | | 17,247,488 | | — | |
Temporary Cash Investments - Securities Lending Collateral | 12,998,903 | | — | | — | |
| $ | 132,024,897 | | $ | 1,402,466,931 | | — | |
6. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund is owned by a relatively small number of shareholders, and in the event such shareholders redeem, the ongoing operations of the fund may be at risk.
7. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
| | | | | |
Federal tax cost of investments | $ | 1,075,795,845 | |
Gross tax appreciation of investments | $ | 464,103,763 | |
Gross tax depreciation of investments | (5,407,780) | |
Net tax appreciation (depreciation) of investments | $ | 458,695,983 | |
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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For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | | | | | | | |
Per-Share Data | | | | | | | Ratios and Supplemental Data | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
G Class | | | | | | | | | | | | | | |
2021(3) | $13.98 | 0.11 | 1.63 | 1.74 | (0.10) | (0.35) | (0.45) | $15.27 | 12.82% | 0.01%(4) | 0.84%(4) | 1.56%(4) | 0.73%(4) | 24% | $1,514,975 | |
2020 | $11.37 | 0.13 | 2.78 | 2.91 | (0.17) | (0.13) | (0.30) | $13.98 | 26.30% | 0.01% | 0.83% | 1.13% | 0.31% | 55% | $1,339,006 | |
2019 | $11.13 | 0.17 | 1.50 | 1.67 | (0.22) | (1.21) | (1.43) | $11.37 | 18.27% | 0.01% | 0.84% | 1.60% | 0.77% | 70% | $827,151 | |
2018 | $12.57 | 0.22 | (1.09) | (0.87) | (0.20) | (0.37) | (0.57) | $11.13 | (7.35)% | 0.01% | 0.82% | 1.75% | 0.94% | 71% | $896,239 | |
2017 | $9.61 | 0.14 | 2.91 | 3.05 | (0.09) | — | (0.09) | $12.57 | 32.02% | 0.61% | 0.91% | 1.26% | 0.96% | 57% | $1,039,845 | |
2016 | $10.95 | 0.10 | (1.02) | (0.92) | (0.08) | (0.34) | (0.42) | $9.61 | (8.69)% | 0.98% | 0.98% | 0.98% | 0.98% | 69% | $845,423 | |
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Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized.
(3)Six months ended May 28, 2021 (unaudited).
(4)Annualized.
See Notes to Financial Statements.
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Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2019 through December 31, 2020. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century Investments’ website at americancentury.com/proxy and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
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American Century World Mutual Funds, Inc. | |
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Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |
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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. | |
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©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92627 2107 | |
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| Semiannual Report |
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| May 28, 2021 |
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| NT International Small-Mid Cap Fund |
| Investor Class (ANTSX) |
| G Class (ANTMX) |
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Fund Characteristics | |
Shareholder Fee Example | |
Schedule of Investments | |
Statement of Assets and Liabilities | |
Statement of Operations | |
Statement of Changes in Net Assets | |
Notes to Financial Statements | |
Financial Highlights | |
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Liquidity Risk Management Program | |
Additional Information | |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
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MAY 28, 2021 | |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 99.6% |
Rights | —* |
Temporary Cash Investments | 0.1% |
Temporary Cash Investments - Securities Lending Collateral | 0.8% |
Other Assets and Liabilities | (0.5)% |
*Category is less than 0.05% of total net assets. | |
| |
Top Five Countries | % of net assets |
Japan | 21.6% |
United Kingdom | 18.5% |
Canada | 10.8% |
Sweden | 6.1% |
Australia | 5.2% |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2020 to May 28, 2021.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund's share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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| Beginning Account Value 12/1/20 | Ending Account Value 5/28/21 | Expenses Paid During Period(1) 12/1/20 - 5/28/21 | Annualized Expense Ratio(1) |
Actual | | | | |
Investor Class | $1,000 | $1,181.00 | $7.70 | 1.44% |
G Class | $1,000 | $1,189.80 | $0.05 | 0.01% |
Hypothetical | | | | |
Investor Class | $1,000 | $1,017.46 | $7.12 | 1.44% |
G Class | $1,000 | $1,024.47 | $0.05 | 0.01% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 179, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
MAY 28, 2021 (UNAUDITED)
| | | | | | | | |
| Shares | Value |
COMMON STOCKS — 99.6% | | |
Australia — 5.2% | | |
carsales.com Ltd. | 197,901 | | $ | 2,969,252 | |
Corporate Travel Management Ltd.(1)(2) | 187,298 | | 3,118,376 | |
IDP Education Ltd. | 96,328 | | 1,669,619 | |
Mineral Resources Ltd. | 142,704 | | 5,049,549 | |
Nickel Mines Ltd. | 4,403,671 | | 3,456,141 | |
OZ Minerals Ltd. | 372,965 | | 7,300,855 | |
Seven Group Holdings Ltd.(2) | 354,006 | | 5,567,276 | |
| | 29,131,068 | |
Austria — 0.7% | | |
ANDRITZ AG | 68,351 | | 3,991,015 | |
Belgium — 1.2% | | |
D'ieteren SA | 58,847 | | 6,947,207 | |
Canada — 10.8% | | |
Alamos Gold, Inc. (New York), Class A | 300,605 | | 2,744,524 | |
BRP, Inc. | 70,516 | | 5,943,412 | |
CAE, Inc.(1) | 223,942 | | 6,938,578 | |
Canadian Western Bank | 236,373 | | 7,161,336 | |
Colliers International Group, Inc. (Toronto)(2) | 72,668 | | 8,074,356 | |
Descartes Systems Group, Inc. (The)(1) | 44,818 | | 2,621,448 | |
FirstService Corp. | 20,997 | | 3,406,483 | |
Nuvei Corp.(1) | 67,616 | | 5,034,011 | |
Parex Resources, Inc.(1) | 310,404 | | 5,298,233 | |
TFI International, Inc. | 105,511 | | 10,113,964 | |
Whitecap Resources, Inc. | 837,183 | | 3,970,910 | |
| | 61,307,255 | |
China — 0.5% | | |
Minth Group Ltd. | 680,000 | | 2,875,940 | |
Denmark — 4.2% | | |
ALK-Abello A/S(1) | 14,579 | | 6,495,156 | |
Jyske Bank A/S(1) | 71,899 | | 3,710,804 | |
Pandora A/S | 63,878 | | 8,628,040 | |
Royal Unibrew A/S | 38,294 | | 4,947,989 | |
| | 23,781,989 | |
Finland — 2.5% | | |
Metso Outotec Oyj | 731,801 | | 8,674,389 | |
Musti Group Oyj(1) | 138,379 | | 5,312,248 | |
| | 13,986,637 | |
France — 4.8% | | |
Alten SA(1) | 34,264 | | 4,196,304 | |
APERAM SA(2) | 117,132 | | 6,457,759 | |
Elis SA(1) | 280,834 | | 5,349,699 | |
Nexans SA | 64,133 | | 5,675,197 | |
SOITEC(1) | 25,868 | | 5,226,310 | |
| | 26,905,269 | |
Germany — 3.2% | | |
Dermapharm Holding SE | 60,537 | | 5,171,752 | |
| | | | | | | | |
| Shares | Value |
flatexDEGIRO AG(1) | 33,956 | | $ | 4,273,046 | |
Hypoport SE(1) | 2,499 | | 1,397,547 | |
ProSiebenSat.1 Media SE(1) | 333,396 | | 7,485,532 | |
| | 18,327,877 | |
Hong Kong — 0.5% | | |
Man Wah Holdings Ltd. | 1,326,800 | | 2,987,562 | |
Ireland — 2.4% | | |
AIB Group plc(1) | 2,418,074 | | 8,053,466 | |
Glanbia plc | 312,086 | | 5,198,861 | |
| | 13,252,327 | |
Israel — 3.3% | | |
Inmode Ltd.(1) | 65,721 | | 5,609,944 | |
Kornit Digital Ltd.(1) | 50,875 | | 5,301,175 | |
Nova Measuring Instruments Ltd.(1) | 78,890 | | 7,906,356 | |
| | 18,817,475 | |
Italy — 3.8% | | |
Autogrill SpA(1)(2) | 471,277 | | 4,040,746 | |
BPER Banca | 2,752,190 | | 6,830,797 | |
Buzzi Unicem SpA | 94,476 | | 2,678,583 | |
FinecoBank Banca Fineco SpA(1) | 180,963 | | 3,013,303 | |
MARR SpA(1) | 197,231 | | 4,897,818 | |
| | 21,461,247 | |
Japan — 21.6% | | |
Asics Corp. | 228,600 | | 5,459,130 | |
ASKUL Corp. | 197,200 | | 3,176,198 | |
CKD Corp. | 237,300 | | 5,385,696 | |
en-japan, Inc. | 121,100 | | 4,134,628 | |
Food & Life Cos. Ltd. | 176,900 | | 7,864,149 | |
IHI Corp.(1) | 333,800 | | 8,202,854 | |
IR Japan Holdings Ltd. | 31,100 | | 3,958,964 | |
Isetan Mitsukoshi Holdings Ltd. | 824,600 | | 5,950,632 | |
Japan Hotel REIT Investment Corp. | 6,432 | | 3,895,092 | |
Japan Steel Works Ltd. (The) | 177,900 | | 4,723,931 | |
Kakaku.com, Inc. | 130,300 | | 3,878,110 | |
Kuraray Co. Ltd. | 429,600 | | 4,544,480 | |
Mabuchi Motor Co. Ltd. | 64,600 | | 2,550,824 | |
Matsumotokiyoshi Holdings Co. Ltd. | 128,900 | | 5,586,824 | |
Nextage Co. Ltd. | 280,800 | | 4,246,528 | |
Nippon Gas Co. Ltd. | 427,500 | | 6,628,662 | |
Open House Co. Ltd. | 198,400 | | 9,190,558 | |
Optorun Co. Ltd. | 95,500 | | 2,361,978 | |
Park24 Co. Ltd.(1) | 272,100 | | 5,687,370 | |
Ryohin Keikaku Co. Ltd. | 298,800 | | 5,743,863 | |
Sanwa Holdings Corp. | 233,900 | | 2,911,920 | |
Tsubaki Nakashima Co. Ltd. | 350,700 | | 5,691,180 | |
Zenkoku Hosho Co. Ltd. | 132,000 | | 5,461,916 | |
Zeon Corp. | 308,600 | | 4,690,641 | |
| | 121,926,128 | |
Netherlands — 4.6% | | |
Accell Group NV(1) | 52,702 | | 2,992,422 | |
Arcadis NV | 96,338 | | 4,197,977 | |
| | | | | | | | |
| Shares | Value |
ASM International NV | 8,111 | | $ | 2,536,786 | |
Basic-Fit NV(1) | 103,397 | | 4,974,572 | |
BE Semiconductor Industries NV | 63,682 | | 5,109,366 | |
Corbion NV | 52,511 | | 3,030,324 | |
OCI NV(1) | 125,715 | | 3,244,186 | |
| | 26,085,633 | |
Norway — 1.6% | | |
Bakkafrost P/F | 84,882 | | 7,569,688 | |
Storebrand ASA | 169,771 | | 1,693,153 | |
| | 9,262,841 | |
Singapore — 0.3% | | |
Mapletree Industrial Trust | 667,400 | | 1,387,241 | |
Spain — 0.6% | | |
Laboratorios Farmaceuticos Rovi SA | 51,385 | | 3,515,036 | |
Sweden — 6.1% | | |
AddTech AB, B Shares | 164,040 | | 2,706,265 | |
BHG Group AB(1) | 154,462 | | 3,000,722 | |
Fastighets AB Balder, B Shares(1) | 69,259 | | 4,359,824 | |
Lifco AB, B Shares | 222,250 | | 4,957,370 | |
Loomis AB | 188,607 | | 6,042,658 | |
Nordic Entertainment Group AB, B Shares(1) | 93,729 | | 4,517,677 | |
Stillfront Group AB(1) | 212,193 | | 2,223,161 | |
Storytel AB(1) | 51,389 | | 1,392,938 | |
Trelleborg AB, B Shares | 207,521 | | 5,324,933 | |
| | 34,525,548 | |
Switzerland — 3.2% | | |
Cembra Money Bank AG | 18,034 | | 2,051,555 | |
Comet Holding AG | 15,325 | | 4,106,158 | |
DKSH Holding AG | 74,204 | | 6,045,122 | |
SIG Combibloc Group AG(1) | 144,942 | | 3,833,927 | |
Zur Rose Group AG(1) | 5,004 | | 1,878,476 | |
| | 17,915,238 | |
United Kingdom — 18.5% | | |
ASOS plc(1) | 62,284 | | 4,307,310 | |
Diploma plc | 173,703 | | 7,095,872 | |
Dr. Martens plc(1) | 660,263 | | 4,586,920 | |
Electrocomponents plc | 525,720 | | 7,372,891 | |
Endava plc, ADR(1) | 51,558 | | 5,288,820 | |
Fevertree Drinks plc | 101,819 | | 3,693,214 | |
Future plc | 179,581 | | 7,224,799 | |
Grafton Group plc | 398,413 | | 6,633,266 | |
Greggs plc(1) | 156,312 | | 5,530,106 | |
Howden Joinery Group plc | 630,595 | | 7,123,132 | |
Intermediate Capital Group plc | 323,252 | | 9,616,381 | |
IWG plc(1) | 985,362 | | 5,029,973 | |
Marks & Spencer Group plc(1) | 1,636,727 | | 3,826,882 | |
Pets at Home Group plc | 931,953 | | 5,922,629 | |
Tritax Big Box REIT plc | 1,994,533 | | 5,571,359 | |
Watches of Switzerland Group plc(1) | 533,567 | | 5,942,572 | |
Weir Group plc (The)(1) | 179,796 | | 4,899,500 | |
| | | | | | | | |
| Shares | Value |
WH Smith plc(1) | 199,581 | | $ | 4,888,350 | |
| | 104,553,976 | |
TOTAL COMMON STOCKS (Cost $423,296,370) | | 562,944,509 | |
RIGHTS† | | |
Singapore† | | |
Mapletree Industrial Trust(1) (Cost $—) | 33,370 | | 2,775 | |
TEMPORARY CASH INVESTMENTS — 0.1% | | |
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.75%, 5/15/25 - 8/15/47, valued at $170,917), in a joint trading account at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $167,272) | | 167,272 | |
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 3.375%, 11/15/48, valued at $283,678), at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $278,000) | | 278,000 | |
State Street Institutional U.S. Government Money Market Fund, Premier Class | 337,268 | | 337,268 | |
TOTAL TEMPORARY CASH INVESTMENTS (Cost $782,540) | | 782,540 | |
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 0.8% |
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $4,359,201) | 4,359,201 | | 4,359,201 | |
TOTAL INVESTMENT SECURITIES — 100.5% (Cost $428,438,111) | | 568,089,025 | |
OTHER ASSETS AND LIABILITIES — (0.5)% | | (2,653,258) | |
TOTAL NET ASSETS — 100.0% | | $ | 565,435,767 | |
| | | | | |
MARKET SECTOR DIVERSIFICATION |
(as a % of net assets) | |
Industrials | 27.8% |
Consumer Discretionary | 22.8% |
Financials | 9.6% |
Materials | 8.4% |
Information Technology | 7.8% |
Consumer Staples | 5.9% |
Real Estate | 5.7% |
Communication Services | 5.2% |
Health Care | 3.6% |
Energy | 1.6% |
Utilities | 1.2% |
Temporary Cash Investments | 0.1% |
Temporary Cash Investments - Securities Lending Collateral | 0.8% |
Other Assets and Liabilities | (0.5)% |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS |
ADR | - | American Depositary Receipt |
†Category is less than 0.05% of total net assets.
(1)Non-income producing.
(2)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $18,022,885. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $18,837,169, which includes securities collateral of $14,477,968.
See Notes to Financial Statements.
| | |
Statement of Assets and Liabilities |
| | | | | |
MAY 28, 2021 (UNAUDITED) |
Assets |
Investment securities, at value (cost of $424,078,910) — including $18,022,885 of securities on loan | $ | 563,729,824 | |
Investment made with cash collateral received for securities on loan, at value (cost of $4,359,201) | 4,359,201 | |
Total investment securities, at value (cost of $428,438,111) | 568,089,025 | |
Foreign currency holdings, at value (cost of $1,199,693) | 1,200,377 | |
Receivable for investments sold | 1,775,980 | |
Receivable for capital shares sold | 1,424 | |
Dividends and interest receivable | 1,398,802 | |
Securities lending receivable | 9,749 | |
| 572,475,357 | |
| |
Liabilities | |
Payable for collateral received for securities on loan | 4,359,201 | |
Payable for investments purchased | 2,241,690 | |
Payable for capital shares redeemed | 312,922 | |
Accrued management fees | 125,777 | |
| 7,039,590 | |
| |
Net Assets | $ | 565,435,767 | |
| |
Net Assets Consist of: | |
Capital (par value and paid-in surplus) | $ | 366,563,461 | |
Distributable earnings | 198,872,306 | |
| $ | 565,435,767 | |
| | | | | | | | | | | |
| Net Assets | Shares Outstanding | Net Asset Value Per Share |
Investor Class, $0.01 Par Value | $106,252,846 | 7,056,705 | $15.06 |
G Class, $0.01 Par Value | $459,182,921 | 30,055,009 | $15.28 |
See Notes to Financial Statements.
| | | | | |
FOR THE SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) |
Investment Income (Loss) |
Income: | |
Dividends (net of foreign taxes withheld of $359,885) | $ | 3,170,070 | |
Securities lending, net | 39,862 | |
Interest | 233 | |
| 3,210,165 | |
| |
Expenses: | |
Management fees | 3,121,529 | |
Directors' fees and expenses | 6,750 | |
Other expenses | 23,119 | |
| 3,151,398 | |
Fees waived(1) | (2,397,097) | |
| 754,301 | |
| |
Net investment income (loss) | 2,455,864 | |
| |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on: | |
Investment transactions | 67,670,579 | |
Foreign currency translation transactions | (29,720) | |
| 67,640,859 | |
| |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 20,150,942 | |
Translation of assets and liabilities in foreign currencies | 12,975 | |
| 20,163,917 | |
| |
Net realized and unrealized gain (loss) | 87,804,776 | |
| |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 90,260,640 | |
(1)Amount consists of $20,264 and $2,376,833 for Investor Class and G Class, respectively.
See Notes to Financial Statements.
| | |
Statement of Changes in Net Assets |
| | | | | | | | |
SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2020 |
Increase (Decrease) in Net Assets | May 28, 2021 | November 30, 2020 |
Operations | | |
Net investment income (loss) | $ | 2,455,864 | | $ | 3,006,377 | |
Net realized gain (loss) | 67,640,859 | | 32,404,423 | |
Change in net unrealized appreciation (depreciation) | 20,163,917 | | 67,743,363 | |
Net increase (decrease) in net assets resulting from operations | 90,260,640 | | 103,154,163 | |
| | |
Distributions to Shareholders | | |
From earnings: | | |
Investor Class | (3,058,614) | | (1,580,340) | |
G Class | (15,557,885) | | (7,505,757) | |
Decrease in net assets from distributions | (18,616,499) | | (9,086,097) | |
| | |
Capital Share Transactions | | |
Net increase (decrease) in net assets from capital share transactions (Note 5) | (1,175,293) | | 67,784,056 | |
| | |
Net increase (decrease) in net assets | 70,468,848 | | 161,852,122 | |
| | |
Net Assets | | |
Beginning of period | 494,966,919 | | 333,114,797 | |
End of period | $ | 565,435,767 | | $ | 494,966,919 | |
See Notes to Financial Statements.
| | |
Notes to Financial Statements |
MAY 28, 2021 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. NT International Small-Mid Cap Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital growth. The fund offers the Investor Class and G Class.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value (NAV) per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported NAV per share. Repurchase agreements are valued at cost, which approximates fair value.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 28, 2021.
| | | | | | | | | | | | | | | | | |
Remaining Contractual Maturity of Agreements |
| Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total |
Securities Lending Transactions(1) | | | | |
Common Stocks | $ | 4,359,201 | | — | | — | | — | | $ | 4,359,201 | |
Gross amount of recognized liabilities for securities lending transactions | $ | 4,359,201 | |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc., and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 61% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services, which may be provided indirectly through another American Century Investments mutual fund. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. During the period ended May 28, 2021, the investment advisor agreed to waive 0.04% of the fund's management fee. The investment advisor expects this waiver to continue until March 31, 2022 and cannot terminate it prior to such date without the approval of the Board of Directors. The investment advisor agreed to waive the G Class’s management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors.
The annual management fee and the effective annual management fee after waiver for each class for the period ended May 28, 2021 are as follows:
| | | | | | | | |
| Annual Management Fee | Effective Annual Management Fee After Waiver |
Investor Class | 1.47% | 1.43% |
G Class | 1.12% | 0.00% |
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund sales were $203,051 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $107,024 in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 28, 2021 were $302,459,074 and $318,924,867, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
| | | | | | | | | | | | | | |
| Six months ended May 28, 2021 | Year ended November 30, 2020 |
| Shares | Amount | Shares | Amount |
Investor Class/Shares Authorized | 120,000,000 | | | 120,000,000 | | |
Sold | 2,355 | | $ | 31,316 | | 492,052 | | $ | 3,938,077 | |
Issued in reinvestment of distributions | 232,594 | | 3,058,614 | | 147,695 | | 1,580,340 | |
Redeemed | (615,068) | | (8,513,390) | | (2,059,298) | | (23,788,410) | |
| (380,119) | | (5,423,460) | | (1,419,551) | | (18,269,993) | |
G Class/Shares Authorized | 300,000,000 | | | 300,000,000 | | |
Sold | 1,023,169 | | 14,560,454 | | 16,319,664 | | 188,246,740 | |
Issued in reinvestment of distributions | 1,173,295 | | 15,557,885 | | 700,818 | | 7,505,757 | |
Redeemed | (1,862,108) | | (25,870,172) | | (9,513,355) | | (109,698,448) | |
| 334,356 | | 4,248,167 | | 7,507,127 | | 86,054,049 | |
Net increase (decrease) | (45,763) | | $ | (1,175,293) | | 6,087,576 | | $ | 67,784,056 | |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
| | | | | | | | | | | |
| Level 1 | Level 2 | Level 3 |
Assets | | | |
Investment Securities | | | |
Common Stocks | $ | 26,850,819 | | $ | 536,093,690 | | — | |
Rights | — | | 2,775 | | — | |
Temporary Cash Investments | 337,268 | | 445,272 | | — | |
Temporary Cash Investments - Securities Lending Collateral | 4,359,201 | | — | | — | |
| $ | 31,547,288 | | $ | 536,541,737 | | — | |
7. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
The fund is owned by a relatively small number of shareholders, and in the event such shareholders redeem, the ongoing operations of the fund may be at risk.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing a significant portion of assets in one country or region may accentuate these risks.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
The fund’s investment process may result in high portfolio turnover, which could mean high transaction costs, affecting both performance and capital gains tax liabilities to investors.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
| | | | | |
Federal tax cost of investments | $ | 431,327,969 | |
Gross tax appreciation of investments | $ | 140,856,077 | |
Gross tax depreciation of investments | (4,095,021) | |
Net tax appreciation (depreciation) of investments | $ | 136,761,056 | |
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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For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |
Per-Share Data | | | | | | Ratios and Supplemental Data | |
| | Income From Investment Operations: | Distributions From: | | | Ratio to Average Net Assets of: | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
Investor Class | | | | | | | | | | | | | | |
2021(3) | $13.16 | (0.02) | 2.35 | 2.33 | — | (0.43) | (0.43) | $15.06 | 18.10% | 1.44%(4) | 1.48%(4) | (0.22)%(4) | (0.26)%(4) | 58% | $106,253 | |
2020 | $10.61 | (0.03) | 2.76 | 2.73 | (0.18) | — | (0.18) | $13.16 | 26.24% | 1.47% | 1.48% | (0.25)% | (0.26)% | 131% | $97,901 | |
2019 | $10.56 | 0.01 | 1.14 | 1.15 | (0.04) | (1.06) | (1.10) | $10.61 | 13.13% | 1.48% | 1.48% | 0.14% | 0.14% | 133% | $93,941 | |
2018 | $13.16 | 0.01 | (1.73) | (1.72) | (0.11) | (0.77) | (0.88) | $10.56 | (14.20)% | 1.47% | 1.47% | 0.09% | 0.09% | 140% | $66,042 | |
2017 | $9.88 | (0.01) | 3.29 | 3.28 | — | — | — | $13.16 | 33.20% | 1.48% | 1.48% | (0.10)% | (0.10)% | 122% | $76,484 | |
2016 | $10.29 | (0.01) | (0.33) | (0.34) | (0.07) | — | (0.07) | $9.88 | (3.12)% | 1.47% | 1.47% | (0.07)% | (0.07)% | 138% | $62,162 | |
G Class | | | | | | | | | | | | | | |
2021(3) | $13.36 | 0.09 | 2.36 | 2.45 | (0.10) | (0.43) | (0.53) | $15.28 | 18.98% | 0.01%(4) | 1.13%(4) | 1.21%(4) | 0.09%(4) | 58% | $459,183 | |
2020 | $10.77 | 0.13 | 2.80 | 2.93 | (0.34) | — | (0.34) | $13.36 | 28.03% | 0.01% | 1.13% | 1.21% | 0.09% | 131% | $397,066 | |
2019 | $10.72 | 0.16 | 1.13 | 1.29 | (0.18) | (1.06) | (1.24) | $10.77 | 14.77% | 0.01% | 1.13% | 1.61% | 0.49% | 133% | $239,174 | |
2018 | $13.25 | 0.20 | (1.76) | (1.56) | (0.20) | (0.77) | (0.97) | $10.72 | (12.95)% | 0.00%(5) | 1.12% | 1.56% | 0.44% | 140% | $140,057 | |
2017 | $9.89 | 0.06 | 3.32 | 3.38 | (0.02) | — | (0.02) | $13.25 | 34.20% | 0.80% | 1.22% | 0.58% | 0.16% | 122% | $172,954 | |
2016 | $10.30 | 0.01 | (0.33) | (0.32) | (0.09) | — | (0.09) | $9.89 | (2.97)% | 1.27% | 1.27% | 0.13% | 0.13% | 138% | $135,377 | |
| | |
Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized.
(3)Six months ended May 28, 2021 (unaudited).
(4)Annualized.
(5)Ratio was less than 0.005%.
See Notes to Financial Statements.
| | |
Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2019 through December 31, 2020. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century Investments’ website at americancentury.com/proxy and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
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American Century World Mutual Funds, Inc. | |
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Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |
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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. | |
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©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92628 2107 | |
| | | | | |
| |
| Semiannual Report |
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| May 28, 2021 |
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| NT International Value Fund |
| Investor Class (ANTVX) |
| G Class (ANTYX) |
| | | | | |
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Fund Characteristics | |
Shareholder Fee Example | |
Schedule of Investments | |
Statement of Assets and Liabilities | |
Statement of Operations | |
Statement of Changes in Net Assets | |
Notes to Financial Statements | |
Financial Highlights | |
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| |
| |
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Liquidity Risk Management Program | |
Additional Information | |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
| | | | | |
MAY 28, 2021 | |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 98.2% |
Warrants | —* |
Temporary Cash Investments | 1.4% |
Temporary Cash Investments - Securities Lending Collateral | 2.6% |
Other Assets and Liabilities | (2.2)% |
*Category is less than 0.05% of total net assets. | |
| |
Top Five Countries | % of net assets |
Japan | 22.2% |
United Kingdom | 17.1% |
France | 12.3% |
Germany | 9.1% |
Switzerland | 5.7% |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from December 1, 2020 to May 28, 2021.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | | | | | | | | | |
| Beginning Account Value 12/1/20 | Ending Account Value 5/28/21 | Expenses Paid During Period(1) 12/1/20 - 5/28/21 | Annualized Expense Ratio(1) |
Actual | | | | |
Investor Class | $1,000 | $1,194.10 | $6.03 | 1.12% |
G Class | $1,000 | $1,201.00 | $0.11 | 0.02% |
Hypothetical | | | | |
Investor Class | $1,000 | $1,019.03 | $5.54 | 1.12% |
G Class | $1,000 | $1,024.42 | $0.10 | 0.02% |
(1)Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 179, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
MAY 28, 2021 (UNAUDITED)
| | | | | | | | |
| Shares | Value |
COMMON STOCKS — 98.2% | | |
Australia — 5.1% | | |
Aristocrat Leisure Ltd. | 127,421 | | $ | 4,122,197 | |
Australia & New Zealand Banking Group Ltd. | 734,517 | | 16,383,726 | |
BHP Group Ltd. | 96,036 | | 3,557,227 | |
Commonwealth Bank of Australia | 39,610 | | 3,077,350 | |
Fortescue Metals Group Ltd. | 600,677 | | 10,258,551 | |
Magellan Financial Group Ltd. | 55,745 | | 2,077,371 | |
National Australia Bank Ltd. | 209,332 | | 4,379,571 | |
Santos Ltd. | 592,391 | | 3,146,449 | |
Stockland | 787,493 | | 2,836,454 | |
Wesfarmers Ltd. | 214,033 | | 9,171,898 | |
Westpac Banking Corp. | 222,449 | | 4,554,979 | |
Woodside Petroleum Ltd. | 307,372 | | 5,245,079 | |
| | 68,810,852 | |
Austria — 0.7% | | |
Erste Group Bank AG | 95,705 | | 3,964,311 | |
voestalpine AG | 122,104 | | 5,480,981 | |
| | 9,445,292 | |
Belgium — 1.3% | | |
Ageas SA/NV(1) | 208,976 | | 13,519,547 | |
Etablissements Franz Colruyt NV | 251 | | 15,284 | |
KBC Group NV | 692 | | 56,650 | |
Solvay SA | 30,411 | | 4,116,050 | |
| | 17,707,531 | |
Canada — 0.3% | | |
Magna International, Inc. | 35,470 | | 3,566,819 | |
Denmark — 0.3% | | |
Novo Nordisk A/S, B Shares | 48,803 | | 3,852,797 | |
Finland — 0.8% | | |
Fortum Oyj(1) | 136,669 | | 3,947,871 | |
Kone Oyj, B Shares | 91,890 | | 7,475,829 | |
| | 11,423,700 | |
France — 12.3% | | |
ArcelorMittal SA(2) | 216,790 | | 7,011,496 | |
AXA SA | 360,776 | | 10,043,493 | |
BNP Paribas SA(1) | 330,086 | | 22,724,807 | |
Cie de Saint-Gobain(2) | 206,668 | | 13,872,966 | |
Cie Generale des Etablissements Michelin SCA(1) | 33,783 | | 5,163,348 | |
Danone SA | 44,695 | | 3,186,069 | |
Dassault Systemes SE | 11,585 | | 2,660,912 | |
Eiffage SA | 43,949 | | 4,849,333 | |
Hermes International | 4,650 | | 6,478,578 | |
Ipsen SA | 34,023 | | 3,551,514 | |
L'Oreal SA | 7,876 | | 3,565,619 | |
Legrand SA | 75,901 | | 7,961,740 | |
Publicis Groupe SA | 181,558 | | 12,272,621 | |
Safran SA | 44,079 | | 6,665,175 | |
| | | | | | | | |
| Shares | Value |
Sanofi | 86,097 | | $ | 9,211,798 | |
Schneider Electric SE | 84,272 | | 13,412,701 | |
SCOR SE(2) | 95,003 | | 3,092,695 | |
TOTAL SE | 560,387 | | 26,136,875 | |
Vinci SA | 32,820 | | 3,730,741 | |
| | 165,592,481 | |
Germany — 9.1% | | |
Allianz SE | 85,225 | | 22,632,453 | |
BASF SE | 37,641 | | 3,081,706 | |
Bayerische Motoren Werke AG | 120,022 | | 12,741,252 | |
Brenntag SE | 167,771 | | 15,756,010 | |
Daimler AG | 255,296 | | 23,818,527 | |
GEA Group AG | 75,404 | | 3,280,776 | |
HeidelbergCement AG | 100,746 | | 9,208,036 | |
Muenchener Rueckversicherungs-Gesellschaft AG | 52,889 | | 15,223,514 | |
Siemens AG | 84,240 | | 13,826,950 | |
Volkswagen AG, Preference Shares | 11,229 | | 3,091,329 | |
| | 122,660,553 | |
Hong Kong — 3.5% | | |
BOC Hong Kong Holdings Ltd. | 3,645,500 | | 13,446,751 | |
CK Asset Holdings Ltd. | 628,000 | | 4,275,647 | |
CK Hutchison Holdings Ltd. | 455,000 | | 3,627,434 | |
Hang Seng Bank Ltd. | 514,000 | | 10,956,868 | |
Hong Kong Exchanges & Clearing Ltd. | 63,400 | | 3,901,800 | |
Sun Hung Kai Properties Ltd. | 277,000 | | 4,325,847 | |
Techtronic Industries Co. Ltd. | 132,000 | | 2,484,786 | |
WH Group Ltd. | 5,113,000 | | 4,409,400 | |
| | 47,428,533 | |
Ireland — 0.3% | | |
CRH plc | 66,280 | | 3,467,565 | |
Israel — 0.5% | | |
Israel Discount Bank Ltd., A Shares(2) | 763,112 | | 3,911,709 | |
Mizrahi Tefahot Bank Ltd.(2) | 103,098 | | 3,116,560 | |
| | 7,028,269 | |
Italy — 1.9% | | |
Enel SpA | 264,183 | | 2,619,981 | |
Eni SpA | 451,872 | | 5,551,703 | |
Intesa Sanpaolo SpA | 1,230,636 | | 3,613,108 | |
Tenaris SA | 1,245,397 | | 14,221,139 | |
| | 26,005,931 | |
Japan — 22.2% | | |
Advantest Corp. | 39,800 | | 3,493,055 | |
Asahi Group Holdings Ltd. | 71,400 | | 3,451,443 | |
Astellas Pharma, Inc. | 587,400 | | 9,372,551 | |
Bridgestone Corp. | 75,300 | | 3,335,219 | |
Brother Industries Ltd. | 596,900 | | 12,704,016 | |
Dai Nippon Printing Co. Ltd. | 112,900 | | 2,447,665 | |
Dai-ichi Life Holdings, Inc. | 204,200 | | 4,271,888 | |
Daikin Industries Ltd. | 9,700 | | 1,939,774 | |
Denso Corp. | 104,200 | | 7,112,449 | |
ENEOS Holdings, Inc. | 785,400 | | 3,243,592 | |
FANUC Corp. | 11,800 | | 2,828,936 | |
FUJIFILM Holdings Corp. | 43,500 | | 2,994,978 | |
| | | | | | | | |
| Shares | Value |
Fujitsu Ltd. | 15,700 | | $ | 2,561,023 | |
Iida Group Holdings Co. Ltd. | 434,700 | | 11,688,919 | |
ITOCHU Corp. | 314,200 | | 9,475,033 | |
Japan Post Insurance Co. Ltd. | 140,800 | | 2,799,551 | |
Kajima Corp. | 213,400 | | 2,960,569 | |
Kao Corp. | 2,200 | | 135,066 | |
KDDI Corp. | 468,300 | | 15,963,744 | |
Komatsu Ltd. | 130,800 | | 3,943,019 | |
Lixil Corp. | 204,500 | | 5,545,296 | |
Mitsubishi Corp. | 204,200 | | 5,583,322 | |
Mitsubishi Electric Corp. | 898,800 | | 14,012,660 | |
Mitsubishi UFJ Financial Group, Inc. | 718,700 | | 4,127,593 | |
Mitsui & Co. Ltd. | 307,300 | | 6,797,004 | |
MS&AD Insurance Group Holdings, Inc. | 101,000 | | 3,094,219 | |
Nabtesco Corp. | 63,400 | | 2,945,985 | |
Nintendo Co. Ltd. | 18,000 | | 11,145,878 | |
Nippon Telegraph & Telephone Corp. | 269,700 | | 7,303,552 | |
Nitori Holdings Co. Ltd. | 2,200 | | 380,199 | |
Nitto Denko Corp. | 65,100 | | 5,137,437 | |
NSK Ltd. | 362,400 | | 3,500,367 | |
Obayashi Corp. | 4,400 | | 37,396 | |
ORIX Corp. | 400,900 | | 7,082,657 | |
Otsuka Holdings Co. Ltd. | 158,800 | | 6,658,106 | |
Panasonic Corp. | 875,900 | | 9,948,172 | |
Recruit Holdings Co. Ltd. | 77,500 | | 3,972,342 | |
Renesas Electronics Corp.(2) | 414,800 | | 4,346,596 | |
Sekisui House Ltd. | 146,700 | | 3,087,437 | |
Seven & i Holdings Co. Ltd. | 188,600 | | 8,300,259 | |
Shin-Etsu Chemical Co. Ltd. | 23,200 | | 4,019,029 | |
Shionogi & Co. Ltd. | 105,500 | | 5,390,661 | |
Softbank Corp. | 170,700 | | 2,188,721 | |
SoftBank Group Corp. | 150,700 | | 11,479,234 | |
Sony Group Corp. | 111,900 | | 11,126,948 | |
Sumitomo Mitsui Financial Group, Inc. | 303,700 | | 11,103,461 | |
Tokyo Electron Ltd. | 8,600 | | 3,773,237 | |
Toyota Industries Corp. | 106,700 | | 9,234,751 | |
Toyota Motor Corp. | 167,100 | | 13,867,431 | |
Trend Micro, Inc. | 58,800 | | 2,986,220 | |
Yamaha Motor Co. Ltd. | 122,900 | | 3,607,820 | |
| | 298,506,480 | |
Netherlands — 3.8% | | |
ING Groep NV | 546,754 | | 7,650,783 | |
Koninklijke Ahold Delhaize NV | 488,674 | | 14,226,434 | |
NN Group NV | 188,272 | | 9,582,676 | |
Randstad NV | 210,184 | | 16,367,439 | |
Wolters Kluwer NV | 37,991 | | 3,648,539 | |
| | 51,475,871 | |
Norway — 0.5% | | |
Yara International ASA | 121,033 | | 6,456,405 | |
Portugal — 0.3% | | |
Jeronimo Martins SGPS SA | 173,805 | | 3,362,225 | |
Singapore — 2.9% | | |
DBS Group Holdings Ltd. | 659,109 | | 15,144,084 | |
| | | | | | | | |
| Shares | Value |
Oversea-Chinese Banking Corp. Ltd. | 812,982 | | $ | 7,679,775 | |
Singapore Technologies Engineering Ltd. | 864,300 | | 2,539,639 | |
United Overseas Bank Ltd. | 722,300 | | 14,342,014 | |
| | 39,705,512 | |
South Korea — 0.4% | | |
LG Chem Ltd. | 3,360 | | 2,503,994 | |
Samsung Electronics Co. Ltd. | 37,893 | | 2,719,969 | |
| | 5,223,963 | |
Spain — 4.1% | | |
ACS Actividades de Construccion y Servicios SA | 1,152 | | 35,508 | |
Banco Bilbao Vizcaya Argentaria SA(2) | 2,662,762 | | 16,631,107 | |
Banco Santander SA(2) | 1,508,369 | | 6,352,798 | |
CaixaBank SA(1) | 3,058,547 | | 10,603,682 | |
Enagas SA | 158,982 | | 3,734,335 | |
Endesa SA | 132,539 | | 3,821,265 | |
Iberdrola SA | 310,812 | | 4,284,230 | |
Industria de Diseno Textil SA | 130,595 | | 5,075,621 | |
Naturgy Energy Group SA | 187,132 | | 4,897,075 | |
Telefonica SA | 27,552 | | 135,730 | |
| | 55,571,351 | |
Sweden — 3.9% | | |
Atlas Copco AB, A Shares | 43,663 | | 2,673,412 | |
Husqvarna AB, B Shares | 822,638 | | 12,117,025 | |
Industrivarden AB, C Shares | 247,143 | | 9,657,334 | |
Investor AB, B Shares | 666,816 | | 15,320,561 | |
Kinnevik AB(1)(2) | 838 | | 30,337 | |
Kinnevik AB, Redemption Shares(1)(2) | 838 | | 15,843 | |
Sandvik AB | 211,731 | | 5,628,369 | |
Securitas AB, B Shares(1) | 181,697 | | 2,974,882 | |
Telefonaktiebolaget LM Ericsson, B Shares | 325,797 | | 4,369,774 | |
| | 52,787,537 | |
Switzerland — 5.7% | | |
Cie Financiere Richemont SA | 31,800 | | 3,852,271 | |
Geberit AG | 8,572 | | 6,222,356 | |
Holcim Ltd.(2) | 52,372 | | 3,133,344 | |
Kuehne + Nagel International AG | 40,966 | | 13,830,258 | |
Novartis AG | 186,082 | | 16,438,612 | |
Partners Group Holding AG | 7,816 | | 11,797,119 | |
Roche Holding AG | 17,755 | | 6,215,164 | |
UBS Group AG | 217,458 | | 3,543,748 | |
Zurich Insurance Group AG | 27,614 | | 11,614,470 | |
| | 76,647,342 | |
Taiwan — 0.3% | | |
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 29,777 | | 3,494,629 | |
United Kingdom — 17.1% | | |
3i Group plc | 259,641 | | 4,568,792 | |
Admiral Group plc | 96,930 | | 4,036,134 | |
Ashtead Group plc | 188,560 | | 13,755,002 | |
Aviva plc | 3,075,738 | | 17,923,661 | |
Barclays plc | 5,396,655 | | 14,014,008 | |
BHP Group plc | 479,903 | | 14,471,279 | |
BP plc | 1,866,150 | | 8,129,425 | |
| | | | | | | | |
| Shares | Value |
Bunzl plc | 965 | | $ | 31,256 | |
Direct Line Insurance Group plc | 10,374 | | 43,796 | |
Evraz plc | 2,116,487 | | 19,112,084 | |
Ferguson plc | 49,420 | | 6,711,733 | |
GlaxoSmithKline plc | 720,083 | | 13,734,729 | |
HSBC Holdings plc | 1,484,145 | | 9,596,249 | |
ITV plc(2) | 3,237,578 | | 5,883,673 | |
J Sainsbury plc | 1,092,028 | | 4,110,768 | |
JD Sports Fashion plc(2) | 435,287 | | 5,826,571 | |
Kingfisher plc(2) | 933,800 | | 4,739,081 | |
Legal & General Group plc | 1,908,105 | | 7,692,540 | |
M&G plc | 2,719,604 | | 9,404,891 | |
Next plc(2) | 66,814 | | 7,715,850 | |
Prudential plc | 183,677 | | 3,908,172 | |
Rio Tinto plc | 237,601 | | 20,433,267 | |
Royal Dutch Shell plc, B Shares | 232,563 | | 4,228,283 | |
Schroders plc | 63,760 | | 3,211,558 | |
St. James's Place plc | 1,152 | | 22,790 | |
Taylor Wimpey plc | 1,216,591 | | 2,949,558 | |
Unilever plc | 128,829 | | 7,721,843 | |
Vodafone Group plc | 7,075,864 | | 12,828,923 | |
WPP plc | 245,040 | | 3,384,883 | |
| | 230,190,799 | |
United States — 0.9% | | |
Broadcom, Inc. | 6,595 | | 3,115,016 | |
Microsoft Corp. | 20,355 | | 5,082,237 | |
NXP Semiconductors NV | 16,477 | | 3,483,567 | |
| | 11,680,820 | |
TOTAL COMMON STOCKS (Cost $1,053,191,609) | | 1,322,093,257 | |
WARRANTS† | | |
Switzerland† | | |
Cie Financiere Richemont SA(2) (Cost $—) | 46,556 | 30,020 | |
TEMPORARY CASH INVESTMENTS — 1.4% | | |
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 2.125% - 2.75%, 5/15/25 - 8/15/47, valued at $4,042,708), in a joint trading account at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $3,956,479) | | 3,956,479 | |
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.25%, 8/15/46, valued at $6,726,966), at 0.00%, dated 5/28/21, due 6/1/21 (Delivery value $6,595,000) | | 6,595,000 | |
State Street Institutional U.S. Government Money Market Fund, Premier Class | 7,977,421 | | 7,977,421 | |
TOTAL TEMPORARY CASH INVESTMENTS (Cost $18,528,900) | | 18,528,900 | |
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 2.6% |
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $35,619,612) | 35,619,612 | 35,619,612 | |
TOTAL INVESTMENT SECURITIES — 102.2% (Cost $1,107,340,121) | | 1,376,271,789 | |
OTHER ASSETS AND LIABILITIES — (2.2)% | | (28,993,086) | |
TOTAL NET ASSETS — 100.0% | | $ | 1,347,278,703 | |
| | | | | | | | | | | | | | |
FUTURES CONTRACTS PURCHASED |
Reference Entity | Contracts | Expiration Date | Notional Amount | Unrealized Appreciation (Depreciation)^ |
MSCI EAFE Index | 141 | June 2021 | $ | 16,475,850 | | $ | 359,260 | |
^Amount represents value and unrealized appreciation (depreciation).
| | | | | |
MARKET SECTOR DIVERSIFICATION |
(as a % of net assets) | |
Financials | 30.1% |
Industrials | 17.6% |
Consumer Discretionary | 13.8% |
Materials | 9.1% |
Communication Services | 6.3% |
Health Care | 5.5% |
Energy | 5.0% |
Information Technology | 4.4% |
Consumer Staples | 3.9% |
Utilities | 1.7% |
Real Estate | 0.8% |
Temporary Cash Investments | 1.4% |
Temporary Cash Investments - Securities Lending Collateral | 2.6% |
Other Assets and Liabilities | (2.2)% |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS |
ADR | - | American Depositary Receipt |
†Category is less than 0.05% of total net assets.
(1)Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $40,691,003. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(2)Non-income producing.
(3)Investment of cash collateral from securities on loan. At the period end, the aggregate value of the collateral held by the fund was $42,502,174, which includes securities collateral of $6,882,562.
See Notes to Financial Statements.
| | |
Statement of Assets and Liabilities |
| | | | | |
MAY 28, 2021 (UNAUDITED) |
Assets |
Investment securities, at value (cost of $1,071,720,509) — including $40,691,003 of securities on loan | $ | 1,340,652,177 | |
Investment made with cash collateral received for securities on loan, at value (cost of $35,619,612) | 35,619,612 | |
Total investment securities, at value (cost of $1,107,340,121) | 1,376,271,789 | |
Foreign currency holdings, at value (cost of $399,441) | 399,074 | |
Deposits with broker for futures contracts | 1,005,048 | |
Receivable for capital shares sold | 1,550 | |
Receivable for variation margin on futures contracts | 26,790 | |
Dividends and interest receivable | 10,180,813 | |
Securities lending receivable | 92,493 | |
| 1,387,977,557 | |
| |
Liabilities | |
Payable for collateral received for securities on loan | 35,619,612 | |
Payable for capital shares redeemed | 4,871,227 | |
Accrued management fees | 172,016 | |
Accrued other expenses | 35,999 | |
| 40,698,854 | |
| |
Net Assets | $ | 1,347,278,703 | |
| |
Net Assets Consist of: | |
Capital (par value and paid-in surplus) | $ | 1,127,234,407 | |
Distributable earnings | 220,044,296 | |
| $ | 1,347,278,703 | |
| | | | | | | | | | | |
| Net Assets | Shares Outstanding | Net Asset Value Per Share |
Investor Class, $0.01 Par Value | $187,618,475 | 17,165,318 | $10.93 |
G Class, $0.01 Par Value | $1,159,660,228 | 105,591,443 | $10.98 |
See Notes to Financial Statements.
| | | | | |
FOR THE SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) |
Investment Income (Loss) |
Income: | |
Dividends (net of foreign taxes withheld of $2,455,289) | $ | 25,870,643 | |
Securities lending, net | 117,859 | |
Interest | 3,129 | |
| 25,991,631 | |
| |
Expenses: | |
Management fees | 4,995,731 | |
Directors' fees and expenses | 16,185 | |
Other expenses | 84,972 | |
| 5,096,888 | |
Fees waived - G Class | (4,081,953) | |
| 1,014,935 | |
| |
Net investment income (loss) | 24,976,696 | |
| |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on: | |
Investment transactions | 84,585,939 | |
Futures contract transactions | 218,772 | |
Foreign currency translation transactions | (99,946) | |
| 84,704,765 | |
| |
Change in net unrealized appreciation (depreciation) on: | |
Change in net unrealized appreciation (depreciation) on investments | 118,626,677 | |
Futures contracts | 359,260 | |
Translation of assets and liabilities in foreign currencies | 33,991 | |
| 119,019,928 | |
| |
Net realized and unrealized gain (loss) | 203,724,693 | |
| |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 228,701,389 | |
See Notes to Financial Statements.
| | |
Statement of Changes in Net Assets |
| | | | | | | | |
SIX MONTHS ENDED MAY 28, 2021 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2020 |
Increase (Decrease) in Net Assets | May 28, 2021 | November 30, 2020 |
Operations | | |
Net investment income (loss) | $ | 24,976,696 | | $ | 27,246,315 | |
Net realized gain (loss) | 84,704,765 | | (36,166,175) | |
Change in net unrealized appreciation (depreciation) | 119,019,928 | | 111,575,725 | |
Net increase (decrease) in net assets resulting from operations | 228,701,389 | | 102,655,865 | |
| | |
Distributions to Shareholders | | |
From earnings: | | |
Investor Class | (2,888,176) | | (6,226,904) | |
G Class | (31,084,298) | | (29,641,753) | |
Decrease in net assets from distributions | (33,972,474) | | (35,868,657) | |
| | |
Capital Share Transactions | | |
Net increase (decrease) in net assets from capital share transactions (Note 5) | (51,772,803) | | 315,024,875 | |
| | |
Net increase (decrease) in net assets | 142,956,112 | | 381,812,083 | |
| | |
Net Assets | | |
Beginning of period | 1,204,322,591 | | 822,510,508 | |
End of period | $ | 1,347,278,703 | | $ | 1,204,322,591 | |
See Notes to Financial Statements.
| | |
Notes to Financial Statements |
MAY 28, 2021 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. NT International Value Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek long-term capital growth. The fund offers the Investor Class and G Class.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value (NAV) per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
Open-end management investment companies are valued at the reported NAV per share. Repurchase agreements are valued at cost, which approximates fair value. Exchange-traded futures contracts are valued at the settlement price as provided by the appropriate exchange.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s NAV per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region. The fund also monitors for significant fluctuations between domestic and foreign markets, as evidenced by the U.S. market or such other indicators that the Board of Directors, or its delegate, deems appropriate. The fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. ACIM monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 28, 2021.
| | | | | | | | | | | | | | | | | |
Remaining Contractual Maturity of Agreements |
| Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total |
Securities Lending Transactions(1) | | | | |
Common Stocks | $ | 35,619,612 | | — | | — | | — | | $ | 35,619,612 | |
Gross amount of recognized liabilities for securities lending transactions | $ | 35,619,612 | |
(1)Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc., and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 61% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that ACIM will pay all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services, which may be provided indirectly through another American Century Investments mutual fund. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The investment advisor agreed to waive the G Class’s management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors.
The annual management fee for each class is as follows:
| | | | | |
Investor Class | G Class |
1.10% | 0.00%(1) |
(1)Annual management fee before waiver was 0.75%.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases were $579,478 and there were no interfund sales.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 28, 2021 were $738,074,648 and $812,391,314, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
| | | | | | | | | | | | | | |
| Six months ended May 28, 2021 | Year ended November 30, 2020 |
| Shares | Amount | Shares | Amount |
Investor Class/Shares Authorized | 250,000,000 | | | 250,000,000 | | |
Sold | 1,099,104 | | $ | 11,530,683 | | 1,623,638 | | $ | 12,336,149 | |
Issued in reinvestment of distributions | 304,339 | | 2,888,176 | | 688,817 | | 6,226,904 | |
Redeemed | (1,186,557) | | (11,351,550) | | (5,402,505) | | (46,685,537) | |
| 216,886 | | 3,067,309 | | (3,090,050) | | (28,122,484) | |
G Class/Shares Authorized | 925,000,000 | | | 925,000,000 | | |
Sold | 4,534,876 | | 45,477,869 | | 56,753,068 | | 478,176,161 | |
Issued in reinvestment of distributions | 3,275,479 | | 31,084,298 | | 3,282,586 | | 29,641,753 | |
Redeemed | (13,129,955) | | (131,402,279) | | (19,089,694) | | (164,670,555) | |
| (5,319,600) | | (54,840,112) | | 40,945,960 | | 343,147,359 | |
Net increase (decrease) | (5,102,714) | | $ | (51,772,803) | | 37,855,910 | | $ | 315,024,875 | |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
•Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.
•Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.
•Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
| | | | | | | | | | | |
| Level 1 | Level 2 | Level 3 |
Assets | | | |
Investment Securities | | | |
Common Stocks | $ | 15,175,449 | | $ | 1,306,917,808 | | — | |
Warrants | — | | 30,020 | | — | |
Temporary Cash Investments | 7,977,421 | | 10,551,479 | | — | |
Temporary Cash Investments - Securities Lending Collateral | 35,619,612 | | — | | — | |
| $ | 58,772,482 | | $ | 1,317,499,307 | | — | |
Other Financial Instruments | | | |
Futures Contracts | $ | 359,260 | | — | | — | |
7. Derivative Instruments
Equity Price Risk — The fund is subject to equity price risk in the normal course of pursuing its investment objectives. A fund may enter into futures contracts based on an equity index in order to manage its exposure to changes in market conditions. A fund may purchase futures contracts to gain exposure to increases in market value or sell futures contracts to protect against a decline in market value. Upon entering into a futures contract, a fund is required to deposit either cash or securities in an amount equal to a certain percentage of the contract value (initial margin). Subsequent payments (variation margin) are made or received daily, in cash, by a fund. The variation margin is equal to the daily change in the contract value and is recorded as unrealized gains and losses. A fund recognizes a realized gain or loss when the contract is closed or expires. Net realized and unrealized gains or losses occurring during the holding period of futures contracts are a component of net realized gain (loss) on futures contract transactions and change in net unrealized appreciation (depreciation) on futures contracts, respectively. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. The fund's average notional exposure to equity price risk derivative instruments held during the period was $18,452,208 futures contracts purchased.
The value of equity price risk derivative instruments as of May 28, 2021, is disclosed on the Statement of Assets and Liabilities as an asset of $26,790 in receivable for variation margin on futures contracts*. For the six months ended May 28, 2021, the effect of equity price risk derivative instruments on the Statement of Operations was $218,772 in net realized gain (loss) on futures contract transactions and $359,260 in change in net unrealized appreciation (depreciation) on futures contracts.
*Included in the unrealized appreciation (depreciation) on futures contracts as reported in the Schedule of Investments.
8. Risk Factors
The value of the fund’s shares will go up and down, sometimes rapidly or unpredictably, based on the performance of the securities owned by the fund and other factors generally affecting the securities market. Market risks, including political, regulatory, economic and social developments, can affect the value of the fund’s investments. Natural disasters, public health emergencies, terrorism and other unforeseeable events may lead to increased market volatility and may have adverse long-term effects on world economies and markets generally.
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
The fund is owned by a relatively small number of shareholders, and in the event such shareholders redeem, the ongoing operations of the fund may be at risk.
The fund’s investment process may result in high portfolio turnover, which could mean high transaction costs, affecting both performance and capital gains tax liabilities to investors.
9. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
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Federal tax cost of investments | $ | 1,123,781,849 | |
Gross tax appreciation of investments | $ | 258,301,710 | |
Gross tax depreciation of investments | (5,811,770) | |
Net tax appreciation (depreciation) of investments | $ | 252,489,940 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2020, the fund had accumulated short-term capital losses of $(82,084,795) and accumulated long-term capital losses of $(43,219,227), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
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For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | | | | | | | |
Per-Share Data | | | | | Ratios and Supplemental Data | | |
| | Income From Investment Operations: | | Ratio to Average Net Assets of: | | |
| Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) |
Investor Class | | | | | | | | | | | | |
2021(3) | $9.33 | 0.16 | 1.62 | 1.78 | (0.18) | $10.93 | 19.41% | 1.12%(4) | 1.12%(4) | 3.02%(4) | 3.02%(4) | 60% | $187,618 | |
2020 | $9.06 | 0.17 | 0.41 | 0.58 | (0.31) | $9.33 | 6.47% | 1.20% | 1.21% | 2.19% | 2.18% | 100% | $158,100 | |
2019 | $9.00 | 0.28 | 0.02 | 0.30 | (0.24) | $9.06 | 3.56% | 1.29% | 1.29% | 3.20% | 3.20% | 82% | $181,458 | |
2018 | $10.53 | 0.25 | (1.47) | (1.22) | (0.31) | $9.00 | (11.95)% | 1.29% | 1.29% | 2.48% | 2.48% | 76% | $219,273 | |
2017 | $8.73 | 0.24 | 1.83 | 2.07 | (0.27) | $10.53 | 24.32% | 1.29% | 1.29% | 2.44% | 2.44% | 79% | $242,242 | |
2016 | $9.24 | 0.25 | (0.56) | (0.31) | (0.20) | $8.73 | (3.42)% | 1.30% | 1.30% | 2.88% | 2.88% | 81% | $201,138 | |
G Class | | | | | | | | | | | | | |
2021(3) | $9.43 | 0.21 | 1.64 | 1.85 | (0.30) | $10.98 | 20.10% | 0.02%(4) | 0.77%(4) | 4.12%(4) | 3.37%(4) | 60% | $1,159,660 | |
2020 | $9.16 | 0.28 | 0.42 | 0.70 | (0.43) | $9.43 | 7.82% | 0.01% | 0.86% | 3.38% | 2.53% | 100% | $1,046,222 | |
2019 | $9.11 | 0.40 | —(5) | 0.40 | (0.35) | $9.16 | 4.77% | 0.00%(6) | 0.94% | 4.49% | 3.55% | 82% | $641,053 | |
2018 | $10.59 | 0.38 | (1.48) | (1.10) | (0.38) | $9.11 | (10.79)% | 0.01% | 0.94% | 3.76% | 2.83% | 76% | $616,338 | |
2017 | $8.75 | 0.29 | 1.84 | 2.13 | (0.29) | $10.59 | 24.99% | 0.69% | 1.04% | 3.04% | 2.69% | 79% | $710,717 | |
2016 | $9.25 | 0.26 | (0.55) | (0.29) | (0.21) | $8.75 | (3.16)% | 1.10% | 1.10% | 3.08% | 3.08% | 81% | $586,173 | |
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Notes to Financial Highlights |
(1)Computed using average shares outstanding throughout the period.
(2)Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized.
(3)Six months ended May 28, 2021 (unaudited).
(4)Annualized.
(5)Per-share amount was less than $0.005.
(6)Ratio was less than 0.005%.
See Notes to Financial Statements.
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Liquidity Risk Management Program |
The Fund has adopted a liquidity risk management program (the “program”). The Fund’s Board of Directors (the "Board") has designated American Century Investment Management, Inc. (“ACIM”) as the administrator of the program. Personnel of ACIM or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by those members of the ACIM’s Investment Oversight Committee who are members of the ACIM’s Investment Management and Global Analytics departments.
Under the program, ACIM manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. ACIM’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by ACIM regarding the operation and effectiveness of the program for the period December 1, 2019 through December 31, 2020. No significant liquidity events impacting the Fund were noted in the report. In addition, ACIM provided its assessment that the program had been effective in managing the Fund’s liquidity risk.
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund is available without charge, upon request, by calling 1-800-345-2021. It is also available on American Century Investments’ website at americancentury.com/proxy and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on americancentury.com/proxy. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These portfolio holdings are available on the fund's website at americancentury.com and, upon request, by calling 1-800-345-2021. The fund’s Form N-PORT reports are available on the SEC’s website at sec.gov.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
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American Century World Mutual Funds, Inc. | |
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Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | |
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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. | |
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©2021 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92629 2107 | |
(b) None.
ITEM 2. CODE OF ETHICS.
Not applicable for semiannual report filings.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semiannual report filings.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semiannual report filings.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable for semiannual report filings.
ITEM 6. INVESTMENTS.
(a) The schedule of investments is included as part of the report to stockholders filed under Item 1 of this Form.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
During the reporting period, there were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)(1) Not applicable for semiannual report filings.
(a)(3) Not applicable.
(a)(4) Not applicable.
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.
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Registrant: | American Century World Mutual Funds, Inc. | |
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By: | /s/ Patrick Bannigan | |
| Name: | Patrick Bannigan | |
| Title: | President | |
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Date: | July 28, 2021 | |
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.
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By: | /s/ Patrick Bannigan |
| Name: | Patrick Bannigan | |
| Title: | President | |
| | (principal executive officer) | |
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Date: | July 28, 2021 | |
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By: | /s/ R. Wes Campbell |
| Name: | R. Wes Campbell | |
| Title: | Treasurer and | |
| | Chief Financial Officer | |
| | (principal financial officer) |
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Date: | July 28, 2021 | |