N-CSR 1 accp3312019n-csrs.htm N-CSRS Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES


Investment Company Act file number
811-07820
 
 
AMERICAN CENTURY CAPITAL PORTFOLIOS, INC.
(Exact name of registrant as specified in charter)
 
 
4500 MAIN STREET, KANSAS CITY, MISSOURI
64111
(Address of principal executive offices)
(Zip Code)
 
 
CHARLES A. ETHERINGTON
4500 MAIN STREET, KANSAS CITY, MISSOURI 64111
(Name and address of agent for service)
 
 
Registrant’s telephone number, including area code:
816-531-5575
 
 
Date of fiscal year end:
03-31
 
 
Date of reporting period:
03-31-2019



ITEM 1. REPORTS TO STOCKHOLDERS.





ANNUAL REPORT
acaltslogoblacka06.jpg
MARCH 31, 2019
 
 
AC Alternatives® Market Neutral Value Fund
 
Investor Class (ACVVX)
 
I Class (ACVKX)
 
A Class (ACVQX)
 
C Class (ACVHX)
 
R Class (ACVWX)
acaltscarrotblacknobleeda05.jpg
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.

You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.





Table of Contents
President’s Letter
2

Performance
3

Portfolio Commentary

Fund Characteristics

Shareholder Fee Example

Schedule of Investments

Statement of Assets and Liabilities

Statement of Operations

Statement of Changes in Net Assets

Notes to Financial Statements

Financial Highlights

Report of Independent Registered Public Accounting Firm

Management

Additional Information























Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.


President’s Letter

jthomasrev0514.jpg Jonathan Thomas

Dear Investor:

Thank you for reviewing this annual report for the period ended March 31, 2019. Annual reports help convey important information about fund returns, including market factors that affected performance during the reporting period. For additional, updated investment and market insights, we encourage you to visit our website, americancentury.com.

Markets Ended Roller-Coaster Period on Upswing

For the first half of the period, U.S. stocks climbed higher, while bond returns headed lower. Robust economic growth, bolstered by federal tax and regulatory reform, and record corporate earnings results fueled risk-on sentiment that drove stock prices higher. Meanwhile, the combination of strong economic data, the Federal Reserve’s (Fed’s) ongoing rate-hike campaign and an uptick in inflation pushed investment-grade bond returns lower.

Market trends began changing in late 2018. Mounting investor concerns about slowing global economic and earnings growth, U.S.-China trade tensions and rising interest rates triggered widespread volatility. Stock prices plunged as investors sought safe-haven investments, including U.S. Treasuries. Furthermore, the Fed issued another rate hike in December, its fourth of the year, and maintained its hawkish outlook. Investors feared the December rate increase and the Fed’s plans for two more rate hikes in 2019 were too aggressive, and risk-off investing remained in favor.

January brought a renewed sense of stability to the markets. Investors’ concerns about growth and trade eased, and the Fed changed course, pausing its rate-hike campaign amid moderating global growth and inflation. Valuations appeared attractive after the late-2018 sell-off, and risk-on investing resumed. In March, the Fed held rates steady again, hinting additional tightening was off the table for 2019. This news drove stock and bond returns higher and left both asset classes on an upward track to end the period. Overall, stocks (S&P 500 Index) overcame their late-2018 nosedive to gain 9.50% for the period. Bonds (Bloomberg Barclays U.S. Aggregate Bond Index) bounced back from losses early in the period to return 4.48%.

We expect volatility to remain a formidable factor as investors react to global growth trends, central bank policy and geopolitical developments. We believe this scenario underscores the importance of using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.

Sincerely,
image48a01.jpg
Jonathan Thomas
President and Chief Executive Officer
American Century Investments


2

Performance
 
Total Returns as of March 31, 2019
 
 
 
Average Annual Returns
 
 
Ticker
Symbol
1 year
5 years
Since Inception
Inception
Date
Investor Class
ACVVX
-3.04%
1.17%
1.80%
10/31/11
Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index
—
2.09%
0.71%
0.49%
—
I Class
ACVKX
-2.90%
1.35%
2.00%
10/31/11
A Class
ACVQX
 
 
 
10/31/11
No sales charge
 
-3.29%
0.92%
1.55%
 
With sales charge
 
-8.89%
-0.27%
0.74%
 
C Class
ACVHX
-4.00%
0.15%
0.78%
10/31/11
R Class
ACVWX
-3.45%
0.66%
1.30%
10/31/11
Fund returns would have been lower if a portion of the fees had not been waived.

Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.























Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

3

Growth of $10,000 Over Life of Class
$10,000 investment made October 31, 2011
Performance for other share classes will vary due to differences in fee structure.

chart-206717ce89e65416b13.jpg
Value on March 31, 2019
 
Investor Class — $11,413
 
 
Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index — $10,372
 
Ending value of Investor Class would have been lower if a portion of the fees had not been waived.

Total Annual Fund Operating Expenses
Investor Class
I Class
A Class
C Class
R Class
3.84%
3.64%
4.09%
4.84%
4.34%
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
















Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

4

Portfolio Commentary

Portfolio Managers: Phil Davidson, Michael Liss, Kevin Toney, Brian Woglom and Dan Gruemmer

Effective April 2019, portfolio manager Dan Gruemmer will leave the fund's management team, and Phil Sundell will join the team.

Performance Summary

AC Alternatives Market Neutral Value declined -3.04%* for the fiscal year ended March 31, 2019, compared with the 2.09% return for its benchmark, the Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index. The fund's return reflects operating expenses, while the index's return does not.

The foundation of the strategy is to pair long positions in more undervalued companies with short positions in overvalued companies. We believe this helps reduce the risk inherent in long/short strategies. Over the past 12-month period, however, our portfolio produced negative returns as investors’ preference for growth and momentum pressured many of our pairs.

Key Detractors

Among the top detractors from performance was a pair consisting of a long position in L Brands and a short position in Lululemon Athletica. Lululemon’s stock rose significantly, causing our short position to detract from performance, as the company reported strong financial results. The long position in L Brands also negatively impacted returns; the stock declined due to weak sales results for the company’s Victoria’s Secret stores.

Our Cheesecake Factory (long position) and Chipotle Mexican Grill (short position) pair also weighed on returns. Chipotle’s stock rose significantly after the company reported strong quarterly earnings and on optimism that the company can continue its turnaround. As of March 31, 2019, we continued to hold this pair because our metrics showed a wide valuation spread between the two companies.

Another top detractor was a pair of industrial distributor stocks consisting of a long position in MSC Industrial Direct and a short position in Fastenal Company. MSC Industrial’s stock declined on concerns regarding European Union retaliatory tariff announcements and disappointing organic growth results. Fastenal’s stock rose, causing our short position to weigh on returns, as the company delivered strong sales growth. Additionally, better management of Fastenal’s internal freight network and a reduction in sales force hiring led to profit margins that exceeded expectations.

Key Contributors

Among the top contributors to performance was a pair consisting of a long position in the Consumer Discretionary Select Sector SPDR Fund and a short position in Avis Budget Group. Our short position in Avis positively affected the portfolio’s performance. The stock declined as investors failed to see anticipated pricing improvements and on concerns that fleet costs could rise. We significantly reduced our weight in this pair as the valuation disparity between the stocks compressed.



*All fund returns referenced in this commentary are for Investor Class shares. Fund returns would have been lower if a portion of the fees had not been waived. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the fund's benchmark, other share classes may not. See page 3 for returns for all share classes.

5

A long position in Southwest Airlines, paired with a short position in American Airlines, also buoyed returns. The stock of American Airlines declined over the reporting period as rising fuel prices
pressured the company’s profitability. Our short position was, therefore, beneficial to the portfolio’s
return. We eliminated this pair from the portfolio because the valuation discrepancy between the two stocks was no longer compelling. However, as of period-end, Southwest Airlines remained a long position within other pairs.

Our Consumer Discretionary Select Sector SPDR Fund (long) and MGM Resorts International (short) pair was another key contributor. The driver behind this pair’s strong performance was the short position in MGM Resorts. The company’s stock declined after recent quarterly results and guidance failed to meet lofty expectations.

Portfolio Positioning

AC Alternatives Market Neutral Value is designed to address several secular financial planning trends, including the need for an alternative to cash in a low interest rate environment, diversification resulting from not being correlated to equity markets, low volatility exposure, and a hedge against a rise in inflation and/or interest rates.

We continue to follow our disciplined, bottom-up process, selecting securities one at a time for the portfolio. We look for securities of companies that we believe are misvalued on both the long and short side of the market with consideration for both upside potential and downside risk. The portfolio’s current positioning reflects the individual opportunities identified by our team.










6

Fund Characteristics 
MARCH 31, 2019
 
Top Ten Long Holdings
% of net assets
Consumer Discretionary Select Sector SPDR Fund
4.09%
Walmart, Inc.
3.86%
Crane Co.
3.62%
MSC Industrial Direct Co., Inc., Class A
3.03%
Zimmer Biomet Holdings, Inc.
2.85%
Atlas Copco AB, B Shares
2.54%
iShares Russell 1000 Value ETF
2.54%
iShares U.S. Real Estate ETF
2.52%
Lear Corp.
2.47%
L Brands, Inc.
2.46%
 
 
Top Ten Short Holdings
% of net assets
Costco Wholesale Corp.
(4.81)%
Stryker Corp.
(3.96)%
VF Corp.
(3.50)%
Cree, Inc.
(3.13)%
Fastenal Co.
(3.06)%
Industrial Select Sector SPDR Fund
(3.03)%
Tesla, Inc.
(2.94)%
Invesco QQQ Trust Series 1
(2.69)%
Lululemon Athletica, Inc.
(2.62)%
Gartner, Inc.
(2.50)%
 
 
Types of Investments in Portfolio
% of net assets
Domestic Common Stocks
80.4%
Foreign Common Stocks*
9.6%
Exchange-Traded Funds
9.9%
Domestic Common Stocks Sold Short
(77.7)%
Foreign Common Stocks Sold Short*
(10.2)%
Exchange-Traded Funds Sold Short
(12.1)%
Temporary Cash Investments
—**
Other Assets and Liabilities
100.1%***
*Includes depositary shares, dual listed securities and foreign ordinary shares.
**Category is less than 0.05% of total net assets.
***Amount relates primarily to deposits for securities sold short at period end.

7

Shareholder Fee Example

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.

The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from October 1, 2018 to March 31, 2019.

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 a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.

Hypothetical Example for Comparison Purposes

The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


8



Beginning
Account Value
10/1/18
Ending
Account Value
3/31/19
Expenses Paid
During Period(1)
10/1/18 - 3/31/19
Annualized
Expense Ratio(1)
Actual
 
 
 
 
Investor Class
$1,000
$977.20
$16.71
3.39%
I Class
$1,000
$977.60
$15.73
3.19%
A Class
$1,000
$975.80
$17.93
3.64%
C Class
$1,000
$972.10
$21.58
4.39%
R Class
$1,000
$974.30
$19.15
3.89%
Hypothetical
 
 
 
 
Investor Class
$1,000
$1,008.03
$16.97
3.39%
I Class
$1,000
$1,009.03
$15.98
3.19%
A Class
$1,000
$1,006.78
$18.21
3.64%
C Class
$1,000
$1,003.04
$21.92
4.39%
R Class
$1,000
$1,005.54
$19.45
3.89%
(1)
Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.

9

Schedule of Investments

MARCH 31, 2019
 
Shares
Value
COMMON STOCKS — 90.0%
 
 
Aerospace and Defense — 2.4%
 
 
BAE Systems plc
870,930

$
5,472,068

HEICO Corp., Class A(1) 
15,063

1,266,196

 
 
6,738,264

Airlines — 2.2%
 
 
Alaska Air Group, Inc.
41,277

2,316,465

Southwest Airlines Co.
74,898

3,887,955

 
 
6,204,420

Auto Components — 2.5%
 
 
Lear Corp.(1) 
50,420

6,842,498

Automobiles — 2.9%
 
 
Honda Motor Co. Ltd. ADR
133,280

3,621,218

Thor Industries, Inc.(1) 
73,090

4,558,623

 
 
8,179,841

Banks — 7.2%
 
 
BOK Financial Corp.
19,430

1,584,517

Comerica, Inc.
18,550

1,360,086

First Hawaiian, Inc.
107,640

2,804,022

PNC Financial Services Group, Inc. (The)
31,980

3,922,667

Prosperity Bancshares, Inc.
51,540

3,559,352

Toronto-Dominion Bank (The)
45,340

2,460,476

U.S. Bancorp
89,560

4,315,896

 
 
20,007,016

Beverages — 2.2%
 
 
Molson Coors Brewing Co., Class B
54,570

3,255,100

PepsiCo, Inc.
23,074

2,827,719

 
 
6,082,819

Biotechnology — 3.8%
 
 
AbbVie, Inc.(1) 
35,010

2,821,456

Biogen, Inc.(2) 
9,110

2,153,422

Gilead Sciences, Inc.(1) 
84,700

5,506,347

 
 
10,481,225

Communications Equipment — 2.7%
 
 
F5 Networks, Inc.(1)(2) 
26,620

4,177,477

Juniper Networks, Inc.(1) 
124,600

3,298,162

 
 
7,475,639

Containers and Packaging — 1.8%
 
 
WestRock Co.(1) 
130,020

4,986,267

Electrical Equipment — 5.5%
 
 
Acuity Brands, Inc.
25,580

3,069,856

Eaton Corp. plc
55,230

4,449,329

Hubbell, Inc.(1) 
37,213

4,390,389


10

 
Shares
Value
Legrand SA
16,250

$
1,087,509

Rockwell Automation, Inc.
12,970

2,275,716

 
 
15,272,799

Electronic Equipment, Instruments and Components — 1.7%
 
 
Avnet, Inc.
19,590

849,618

TE Connectivity Ltd.
47,850

3,863,888

 
 
4,713,506

Equity Real Estate Investment Trusts (REITs) — 0.5%
 
 
American Tower Corp.
7,060

1,391,244

Food and Staples Retailing — 3.9%
 
 
Walmart, Inc.(1) 
109,670

10,696,115

Food Products — 1.1%
 
 
Conagra Brands, Inc.
57,650

1,599,211

J.M. Smucker Co. (The)
12,438

1,449,027

 
 
3,048,238

Gas Utilities — 0.5%
 
 
Atmos Energy Corp.
12,520

1,288,684

Health Care Equipment and Supplies — 5.7%
 
 
Hologic, Inc.(2) 
54,570

2,641,188

Medtronic plc
57,580

5,244,386

Zimmer Biomet Holdings, Inc.(1) 
61,817

7,894,031

 
 
15,779,605

Health Care Providers and Services — 1.0%
 
 
Cigna Corp.(1)(2) 
16,470

2,648,705

Hotels, Restaurants and Leisure — 4.1%
 
 
Carnival Corp.
24,570

1,246,191

Cedar Fair LP
44,500

2,341,590

Cheesecake Factory, Inc. (The)(1) 
90,750

4,439,490

Cracker Barrel Old Country Store, Inc.
8,230

1,330,050

Sodexo SA
19,270

2,121,839

 
 
11,479,160

Household Durables — 0.7%
 
 
PulteGroup, Inc.
67,970

1,900,441

Insurance — 2.1%
 
 
Chubb Ltd.
23,225

3,253,358

Marsh & McLennan Cos., Inc.
8,820

828,198

ProAssurance Corp.
51,420

1,779,646

 
 
5,861,202

Interactive Media and Services — 0.5%
 
 
Alphabet, Inc., Class C(2) 
1,180

1,384,506

IT Services — 1.2%
 
 
International Business Machines Corp.(1) 
24,470

3,452,717

Life Sciences Tools and Services — 0.5%
 
 
Waters Corp.(2) 
5,870

1,477,538

Machinery — 8.9%
 
 
Atlas Copco AB, B Shares
284,170

7,032,958

Crane Co.(1) 
118,700

10,044,394


11

 
Shares
Value
Cummins, Inc.
11,700

$
1,847,079

Ingersoll-Rand plc
16,360

1,766,062

Rexnord Corp.(2) 
157,513

3,959,877

 
 
24,650,370

Multiline Retail — 1.0%
 
 
Target Corp.
32,990

2,647,777

Oil, Gas and Consumable Fuels — 3.6%
 
 
Anadarko Petroleum Corp.
29,050

1,321,194

Enterprise Products Partners LP
71,230

2,072,793

EQM Midstream Partners LP
26,580

1,227,199

Equitrans Midstream Corp.(2) 
39,324

856,477

Noble Energy, Inc.
62,510

1,545,872

Shell Midstream Partners LP
77,321

1,581,214

TOTAL SA ADR
25,260

1,405,719

 
 
10,010,468

Personal Products — 0.7%
 
 
Edgewell Personal Care Co.(2) 
43,300

1,900,437

Pharmaceuticals — 1.0%
 
 
Pfizer, Inc.
66,556

2,826,633

Road and Rail — 1.0%
 
 
Union Pacific Corp.
15,930

2,663,496

Semiconductors and Semiconductor Equipment — 2.3%
 
 
Intel Corp.(1) 
55,940

3,003,978

KLA-Tencor Corp.
16,240

1,939,218

Skyworks Solutions, Inc.
17,162

1,415,522

 
 
6,358,718

Software — 1.7%
 
 
Microsoft Corp.
9,646

1,137,649

Oracle Corp. (New York)
64,265

3,451,673

 
 
4,589,322

Specialty Retail — 3.9%
 
 
Advance Auto Parts, Inc.
9,020

1,538,181

AutoZone, Inc.(1)(2) 
2,470

2,529,576

L Brands, Inc.(1) 
247,230

6,818,603

 
 
10,886,360

Textiles, Apparel and Luxury Goods — 6.2%
 
 
Burberry Group plc
113,810

2,897,191

Capri Holdings Ltd.
129,720

5,934,690

Ralph Lauren Corp.
28,843

3,740,360

Tapestry, Inc.(1) 
139,180

4,521,958

 
 
17,094,199

Trading Companies and Distributors — 3.0%
 
 
MSC Industrial Direct Co., Inc., Class A(1) 
101,650

8,407,472

TOTAL COMMON STOCKS
(Cost $227,225,509)
 
249,427,701

EXCHANGE-TRADED FUNDS — 9.9%
 
 
Consumer Discretionary Select Sector SPDR Fund
99,504

11,328,530

iShares Russell 1000 Value ETF
56,942

7,031,768


12

 
Shares
Value
iShares TIPS Bond ETF
18,290

$
2,068,050

iShares U.S. Real Estate ETF
80,221

6,982,436

TOTAL EXCHANGE-TRADED FUNDS
(Cost $22,500,139)
 
27,410,784

TEMPORARY CASH INVESTMENTS†  
 
 
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.125% - 2.875%, 9/30/19 - 2/15/44, valued at $98,544), in a joint trading account at 2.35%, dated 3/29/19, due 4/1/19 (Delivery value $96,594)
 
96,575

State Street Institutional U.S. Government Money Market Fund, Premier Class
25,183

25,183

TOTAL TEMPORARY CASH INVESTMENTS
(Cost $121,758)
 
121,758

TOTAL INVESTMENT SECURITIES BEFORE SECURITIES SOLD SHORT — 99.9%
(Cost $249,847,406)
276,960,243

SECURITIES SOLD SHORT — (100.0)%
 
 
COMMON STOCKS SOLD SHORT — (87.9)%
 
 
Aerospace and Defense — (2.4)%
 
 
HEICO Corp.
(13,061
)
(1,239,097
)
Northrop Grumman Corp.
(11,122
)
(2,998,491
)
Rolls-Royce Holdings plc
(206,490
)
(2,429,092
)
 
 
(6,666,680
)
Airlines — (2.2)%
 
 
Spirit Airlines, Inc.
(116,170
)
(6,140,746
)
Automobiles — (3.8)%
 
 
Tesla, Inc.
(29,170
)
(8,163,516
)
Toyota Motor Corp. ADR
(20,290
)
(2,394,626
)
 
 
(10,558,142
)
Banks — (6.4)%
 
 
Bank of Hawaii Corp.
(35,210
)
(2,777,013
)
Cullen/Frost Bankers, Inc.
(16,510
)
(1,602,626
)
First Financial Bankshares, Inc.
(62,430
)
(3,607,205
)
M&T Bank Corp.
(12,020
)
(1,887,380
)
Regions Financial Corp.
(277,238
)
(3,922,918
)
Royal Bank of Canada
(32,710
)
(2,467,783
)
Zions Bancorp N.A.
(30,180
)
(1,370,474
)
 
 
(17,635,399
)
Beverages — (2.2)%
 
 
Anheuser-Busch InBev SA ADR
(39,390
)
(3,307,578
)
Coca-Cola Co. (The)
(60,040
)
(2,813,475
)
 
 
(6,121,053
)
Capital Markets — (1.1)%
 
 
FactSet Research Systems, Inc.
(12,020
)
(2,984,206
)
Containers and Packaging — (1.8)%
 
 
Avery Dennison Corp.
(22,590
)
(2,552,670
)
Sealed Air Corp.
(51,690
)
(2,380,841
)
 
 
(4,933,511
)
Distributors — (2.0)%
 
 
Pool Corp.
(34,020
)
(5,612,279
)

13

 
Shares
Value
Electronic Equipment, Instruments and Components — (2.5)%
 
 
Amphenol Corp., Class A
(41,660
)
$
(3,934,370
)
Arrow Electronics, Inc.
(10,890
)
(839,184
)
Cognex Corp.
(44,070
)
(2,241,400
)
 
 
(7,014,954
)
Equity Real Estate Investment Trusts (REITs) — (3.0)%
 
 
AvalonBay Communities, Inc.
(13,170
)
(2,643,614
)
Crown Castle International Corp.
(10,868
)
(1,391,104
)
Equity Residential
(33,030
)
(2,487,820
)
Essex Property Trust, Inc.
(6,140
)
(1,775,933
)
 
 
(8,298,471
)
Food and Staples Retailing — (4.8)%
 
 
Costco Wholesale Corp.
(55,081
)
(13,337,313
)
Food Products — (1.1)%
 
 
Danone SA
(18,420
)
(1,419,317
)
General Mills, Inc.
(30,280
)
(1,566,990
)
 
 
(2,986,307
)
Health Care Equipment and Supplies — (7.2)%
 
 
Abbott Laboratories
(32,200
)
(2,574,068
)
Align Technology, Inc.
(14,500
)
(4,122,785
)
Becton Dickinson and Co.
(8,600
)
(2,147,678
)
Stryker Corp.
(55,570
)
(10,976,186
)
 
 
(19,820,717
)
Health Care Providers and Services — (1.0)%
 
 
UnitedHealth Group, Inc.
(11,100
)
(2,744,586
)
Hotels, Restaurants and Leisure — (5.3)%
 
 
Chipotle Mexican Grill, Inc.
(8,180
)
(5,810,336
)
Compass Group plc
(93,100
)
(2,188,102
)
MGM Resorts International
(114,360
)
(2,934,478
)
Royal Caribbean Cruises Ltd.
(11,010
)
(1,261,966
)
SeaWorld Entertainment, Inc.
(95,490
)
(2,459,822
)
 
 
(14,654,704
)
Household Durables — (0.7)%
 
 
Toll Brothers, Inc.
(53,350
)
(1,931,270
)
Insurance — (2.1)%
 
 
Aon plc
(4,970
)
(848,379
)
Travelers Cos., Inc. (The)
(23,670
)
(3,246,577
)
Zurich Insurance Group AG
(5,390
)
(1,784,127
)
 
 
(5,879,083
)
Internet and Direct Marketing Retail — (0.9)%
 
 
Amazon.com, Inc.
(1,460
)
(2,599,895
)
IT Services — (2.5)%
 
 
Gartner, Inc.
(45,710
)
(6,933,293
)
Leisure Products — (1.6)%
 
 
Polaris Industries, Inc.
(53,180
)
(4,489,987
)
Life Sciences Tools and Services — (0.5)%
 
 
PerkinElmer, Inc.
(15,400
)
(1,483,944
)

14

 
Shares
Value
Machinery — (7.1)%
 
 
Caterpillar, Inc.
(7,694
)
$
(1,042,460
)
CNH Industrial NV
(75,983
)
(775,027
)
Donaldson Co., Inc.
(75,590
)
(3,784,035
)
ESCO Technologies, Inc.
(49,250
)
(3,301,228
)
Flowserve Corp.
(75,880
)
(3,425,223
)
RBC Bearings, Inc.
(31,114
)
(3,956,767
)
Xylem, Inc.
(42,770
)
(3,380,541
)
 
 
(19,665,281
)
Oil, Gas and Consumable Fuels — (1.0)%
 
 
Exxon Mobil Corp.
(17,470
)
(1,411,576
)
Occidental Petroleum Corp.
(19,590
)
(1,296,858
)
 
 
(2,708,434
)
Pharmaceuticals — (4.8)%
 
 
AstraZeneca plc ADR
(145,732
)
(5,891,945
)
Eli Lilly & Co.
(37,593
)
(4,878,068
)
Sanofi
(27,730
)
(2,449,297
)
 
 
(13,219,310
)
Road and Rail — (2.0)%
 
 
Avis Budget Group, Inc.
(80,094
)
(2,792,077
)
CSX Corp.
(35,154
)
(2,630,222
)
 
 
(5,422,299
)
Semiconductors and Semiconductor Equipment — (4.7)%
 
 
Analog Devices, Inc.
(28,636
)
(3,014,512
)
Cree, Inc.
(151,792
)
(8,685,538
)
Semtech Corp.
(27,750
)
(1,412,753
)
 
 
(13,112,803
)
Specialty Retail — (1.4)%
 
 
O'Reilly Automotive, Inc.
(10,320
)
(4,007,256
)
Textiles, Apparel and Luxury Goods — (8.7)%
 
 
Lululemon Athletica, Inc.
(44,402
)
(7,276,156
)
LVMH Moet Hennessy Louis Vuitton SE
(8,030
)
(2,953,610
)
PVH Corp.
(8,942
)
(1,090,477
)
Under Armour, Inc., Class C
(160,560
)
(3,029,767
)
VF Corp.
(111,580
)
(9,697,418
)
 
 
(24,047,428
)
Trading Companies and Distributors — (3.1)%
 
 
Fastenal Co.
(132,017
)
(8,490,013
)
TOTAL COMMON STOCKS SOLD SHORT
(Proceeds $200,384,724)
 
(243,499,364
)
EXCHANGE-TRADED FUNDS SOLD SHORT — (12.1)%
 
 
Alerian MLP ETF
(552,436
)
(5,540,933
)
Consumer Staples Select Sector SPDR Fund
(33,400
)
(1,874,074
)
Industrial Select Sector SPDR Fund
(111,890
)
(8,395,107
)
Invesco QQQ Trust Series 1
(41,490
)
(7,454,093
)
iShares Preferred & Income Securities ETF
(55,740
)
(2,037,297
)
SPDR S&P Bank ETF
(59,190
)
(2,472,366
)
SPDR S&P Oil & Gas Exploration & Production ETF
(49,980
)
(1,536,385
)

15

 
Shares
Value
Technology Select Sector SPDR Fund
(40,560
)
$
(3,001,440
)
Utilities Select Sector SPDR Fund
(22,250
)
(1,294,283
)
TOTAL EXCHANGE-TRADED FUNDS SOLD SHORT
(Proceeds $32,255,757)
 
(33,605,978
)
TOTAL SECURITIES SOLD SHORT — (100.0)%
(Proceeds $232,640,481)
 
(277,105,342
)
OTHER ASSETS AND LIABILITIES(3) — 100.1%
 
277,349,472

TOTAL NET ASSETS — 100.0%
 
$
277,204,373



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, has been pledged at the custodian bank or with a broker for collateral requirements on securities sold short. At the period end, the aggregate value of securities pledged was $92,542,554.
(2)
Non-income producing.
(3)
Amount relates primarily to deposits for securities sold short at period end.

See Notes to Financial Statements.


16

Statement of Assets and Liabilities
MARCH 31, 2019
 
Assets
 
Investment securities, at value (cost of $249,847,406)
$
276,960,243

Deposits for securities sold short
279,299,269

Receivable for investments sold
25,256,833

Receivable for capital shares sold
82,142

Dividends and interest receivable
846,634

 
582,445,121

 
 
Liabilities
 
Securities sold short, at value (proceeds of $232,640,481)
277,105,342

Payable for investments purchased
26,614,104

Payable for capital shares redeemed
875,595

Accrued management fees
403,523

Distribution and service fees payable
10,390

Dividend expense payable on securities sold short
231,794

 
305,240,748

 
 
Net Assets
$
277,204,373

 
 
Net Assets Consist of:
 
Capital (par value and paid-in surplus)
$
323,918,454

Distributable earnings
(46,714,081
)
 
$
277,204,373


 
Net Assets
Shares Outstanding
Net Asset Value
Per Share
Investor Class, $0.01 Par Value

$73,870,911

7,819,302

$9.45
I Class, $0.01 Par Value

$188,718,445

19,631,009

$9.61
A Class, $0.01 Par Value

$3,926,215

424,013

$9.26*
C Class, $0.01 Par Value

$10,648,437

1,225,166

$8.69
R Class, $0.01 Par Value

$40,365

4,452

$9.07
*Maximum offering price $9.82 (net asset value divided by 0.9425).


See Notes to Financial Statements.


17

Statement of Operations
YEAR ENDED MARCH 31, 2019
 
Investment Income (Loss)
 
Income:
 
Dividends (net of foreign taxes withheld of $149,837)
$
9,321,578

Interest
6,417,161

 
15,738,739

 
 
Expenses:
 
Dividend expense on securities sold short
7,659,068

Management fees
6,886,580

Distribution and service fees:
 
A Class
19,421

C Class
160,003

R Class
256

Directors' fees and expenses
11,981

Other expenses
30,100

 
14,767,409

Fees waived(1)
(411,003
)
 
14,356,406

 
 
Net investment income (loss)
1,382,333

 
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) on:
 
Investment transactions
40,598,862

Securities sold short transactions
(20,013,106
)
Forward foreign currency exchange contract transactions
(17,370
)
Foreign currency translation transactions
(23,349
)
 
20,545,037

 
 
Change in net unrealized appreciation (depreciation) on:
 
Investments
(25,850,962
)
Securities sold short
(7,673,424
)
Translation of assets and liabilities in foreign currencies
(943
)
 
(33,525,329
)
 
 
Net realized and unrealized gain (loss)
(12,980,292
)
 
 
Net Increase (Decrease) in Net Assets Resulting from Operations
$
(11,597,959
)

(1)
Amount consists of $171,523, $213,884, $9,208, $16,333 and $55 for Investor Class, I Class, A Class, C Class and R Class, respectively.


See Notes to Financial Statements.


18

Statement of Changes in Net Assets
YEARS ENDED MARCH 31, 2019 AND MARCH 31, 2018
Increase (Decrease) in Net Assets
March 31, 2019
March 31, 2018
Operations
 
 
Net investment income (loss)
$
1,382,333

$
(6,819,922
)
Net realized gain (loss)
20,545,037

8,077,339

Change in net unrealized appreciation (depreciation)
(33,525,329
)
(17,218,668
)
Net increase (decrease) in net assets resulting from operations
(11,597,959
)
(15,961,251
)
 
 
 
Distributions to Shareholders
 
 
From earnings:
 
 
Investor Class
(6,907,961
)
(6,698,830
)
I Class
(10,706,558
)
(5,587,919
)
A Class
(252,366
)
(365,770
)
C Class
(802,869
)
(638,486
)
R Class
(2,255
)
(1,837
)
Decrease in net assets from distributions
(18,672,009
)
(13,292,842
)
 
 
 
Capital Share Transactions
 
 
Net increase (decrease) in net assets from capital share transactions (Note 5)
(221,823,229
)
(187,833,645
)
 
 
 
Net increase (decrease) in net assets
(252,093,197
)
(217,087,738
)
 
 
 
Net Assets
 
 
Beginning of period
529,297,570

746,385,308

End of period
$
277,204,373

$
529,297,570



See Notes to Financial Statements.


19

Notes to Financial Statements

MARCH 31, 2019

1. Organization

American Century Capital Portfolios, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. AC Alternatives Market Neutral 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, independent of equity market conditions.

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 per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
 
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
 
Fixed income securities are valued at the evaluated mean as provided by independent pricing services or at the mean of the most recent bid and asked prices as provided by investment dealers. Corporate and convertible bonds are valued using market models that consider trade data, quotations from dealers and active market makers, relevant yield curve and spread data, creditworthiness, trade data or market information on comparable securities, and other relevant security specific information.
 
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value. Forward foreign currency exchange contracts are valued at the mean of the appropriate forward exchange rate at the close of the NYSE as provided by an independent pricing service.
 

20

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 net asset value 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. If significant fluctuations in foreign markets are identified, 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 Sold Short — The fund enters into short sales, which is selling securities it does not own, as part of its normal investment activities. Upon selling a security short, the fund will segregate cash, cash equivalents or other appropriate liquid securities in at least an amount equal to the current market value of the securities sold short until the fund replaces the borrowed security. Interest earned on segregated cash for securities sold short, if any, is reflected as interest income. The fund is required to pay any dividends or interest due on securities sold short. Such dividends and interest are recorded as an expense. The fund may pay fees or charges on the assets borrowed for securities sold short. These fees are calculated daily based upon the value of each security sold short and a rate that is dependent on the availability of such security. Liabilities for securities sold short are valued daily and changes in value are recorded as change in net unrealized appreciation (depreciation) on securities sold short. The fund records realized gain (loss) on a security sold short when it is terminated by the fund and includes as a component of net realized gain (loss) on securities sold short transactions.

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. Net realized and unrealized foreign currency exchange gains or losses related to securities sold short are a component of net realized gain (loss) on securities sold short transactions and change in net unrealized appreciation (depreciation) on securities sold short, respectively.
 
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. American Century Investment Management, Inc. (ACIM) (the investment advisor) 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.

21

 
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that ACIM has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
 
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
 
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
 
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
 
Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid quarterly. Distributions from net realized gains, if any, are generally declared and paid annually.
 
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 all expenses of managing and operating the fund, except distribution and service fees, expenses on securities sold short, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. From April 1, 2018 through July 31, 2018, the investment advisor agreed to waive 0.25% of the fund's management fee. Effective August 1, 2018, the investment advisor terminated the waiver and decreased the annual management fee by 0.25%.


22

The annual management fee and the effective annual management fee before and after waiver for each class for the period ended March 31, 2019 are as follows:
 
 
Effective Annual Management Fee
 
Annual Management Fee*
Before Waiver
After Waiver
Investor Class
1.65%
1.75%
1.65%
I Class
1.45%
1.55%
1.45%
A Class
1.65%
1.75%
1.65%
C Class
1.65%
1.75%
1.65%
R Class
1.65%
1.75%
1.65%
*Prior to August 1, 2018, the annual management fee was 1.90% for the Investor Class, A Class, C Class and R Class and 1.70% for the I Class.

Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended March 31, 2019 are detailed in the Statement of Operations.
 
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
 
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $8,665,064 and $12,460,349, respectively. The effect of interfund transactions on the Statement of Operations was $(73,950) in net realized gain (loss) on investment transactions.
 
4. Investment Transactions

Purchases and sales of investment securities and securities sold short, excluding short-term investments, for the period ended March 31, 2019 were $1,321,554,616 and $1,301,562,989, respectively.


23

5. Capital Share Transactions

Transactions in shares of the fund were as follows:
 
Year ended March 31, 2019
Year ended March 31, 2018
 
Shares
Amount
Shares
Amount
Investor Class/Shares Authorized
170,000,000

 
240,000,000

 
Sold
3,286,629

$
33,034,441

14,653,809

$
155,378,996

Issued in reinvestment of distributions
722,917

6,903,858

640,969

6,627,618

Redeemed
(18,848,151
)
(187,412,531
)
(31,655,638
)
(333,048,836
)
 
(14,838,605
)
(147,474,232
)
(16,360,860
)
(171,042,222
)
I Class/Shares Authorized
220,000,000

 
150,000,000

 
Sold
15,751,101

161,495,339

22,670,745

241,153,307

Issued in reinvestment of distributions
1,062,405

10,315,952

515,071

5,403,092

Redeemed
(22,323,814
)
(227,846,287
)
(15,002,218
)
(159,752,059
)
 
(5,510,308
)
(56,034,996
)
8,183,598

86,804,340

A Class/Shares Authorized
25,000,000

 
70,000,000

 
Sold
129,158

1,287,385

864,634

9,018,952

Issued in reinvestment of distributions
26,852

251,608

35,896

365,419

Redeemed
(925,853
)
(9,237,455
)
(9,756,785
)
(102,303,722
)
 
(769,843
)
(7,698,462
)
(8,856,255
)
(92,919,351
)
C Class/Shares Authorized
25,000,000

 
25,000,000

 
Sold
60,650

567,849

282,807

2,814,310

Issued in reinvestment of distributions
91,016

801,847

65,910

638,013

Redeemed
(1,288,401
)
(11,950,802
)
(1,427,910
)
(14,089,402
)
 
(1,136,735
)
(10,581,106
)
(1,079,193
)
(10,637,079
)
R Class/Shares Authorized
10,000,000

 
10,000,000

 
Sold
2,617

25,325

4,087

41,696

Issued in reinvestment of distributions
245

2,255

184

1,837

Redeemed
(6,369
)
(62,013
)
(8,063
)
(82,866
)
 
(3,507
)
(34,433
)
(3,792
)
(39,333
)
Net increase (decrease)
(22,258,998
)
$
(221,823,229
)
(18,116,502
)
$
(187,833,645
)

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.
 

24

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
 
 
 
Aerospace and Defense
$
1,266,196

$
5,472,068

—

Banks
17,546,540

2,460,476

—

Electrical Equipment
14,185,290

1,087,509

—

Hotels, Restaurants and Leisure
9,357,321

2,121,839

—

Machinery
17,617,412

7,032,958

—

Textiles, Apparel and Luxury Goods
14,197,008

2,897,191

—

Other Industries
154,185,893

—

—

Exchange-Traded Funds
27,410,784

—

—

Temporary Cash Investments
25,183

96,575

—

 
$
255,791,627

$
21,168,616

—

 
 
 
 
Liabilities
 
 
 
Securities Sold Short
 
 
 
Common Stocks
 
 
 
Aerospace and Defense
$
4,237,588

$
2,429,092

—

Banks
15,167,616

2,467,783

—

Food Products
1,566,990

1,419,317

—

Hotels, Restaurants and Leisure
12,466,602

2,188,102

—

Insurance
4,094,956

1,784,127

—

Pharmaceuticals
10,770,013

2,449,297

—

Textiles, Apparel and Luxury Goods
21,093,818

2,953,610

—

Other Industries
158,410,453

—

—

Exchange-Traded Funds
33,605,978

—

—

 
$
261,414,014

$
15,691,328

—

 





















25

7. Derivative Instruments

Foreign Currency Risk — The fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The value of foreign investments held by a fund may be significantly affected by changes in foreign currency exchange rates. The dollar value of a foreign security generally decreases when the value of the dollar rises against the foreign currency in which the security is denominated and tends to increase when the value of the dollar declines against such foreign currency. A fund may enter into forward foreign currency exchange contracts to reduce a fund's exposure to foreign currency exchange rate fluctuations. The net U.S. dollar value of foreign currency underlying all contractual commitments held by a fund and the resulting unrealized appreciation or depreciation are determined daily. Realized gain or loss is recorded upon the termination of the contract. Net realized and unrealized gains or losses occurring during the holding period of forward foreign currency exchange contracts are a component of net realized gain (loss) on forward foreign currency exchange contract transactions and change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts, respectively. A fund bears the risk of an unfavorable change in the foreign currency exchange rate underlying the forward contract. Additionally, losses, up to the fair value, may arise if the counterparties do not perform under the contract terms. The fund's average U.S. dollar exposure to foreign currency risk derivative instruments held during the period was $1,127,912.

At period end, the fund did not have any derivative instruments disclosed on the Statement of Assets and Liabilities. For the year ended March 31, 2019, the effect of foreign currency risk derivative instruments on the Statement of Operations was $(17,370) in net realized gain (loss) on forward foreign currency exchange contract transactions.

8. Risk Factors

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.
 
The fund is subject to short sales risk. If the market price of a security increases after the fund borrows the security, the fund may suffer a loss when it replaces the borrowed security at the higher price. Any loss will be increased by the amount of compensation, interest or dividends, and transaction costs the fund must pay to the lender of the borrowed security.

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.

9. Federal Tax Information

The tax character of distributions paid during the years ended March 31, 2019 and March 31, 2018 were as follows:
 
2019
2018
Distributions Paid From
 
 
Ordinary income
$
3,983,846

$
6,768,945

Long-term capital gains
$
14,688,163

$
6,523,897


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.







26

As of period end, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments
$
265,403,248

Gross tax appreciation of investments
$
19,169,989

Gross tax depreciation of investments
(7,612,994
)
Net tax appreciation (depreciation) of investments
11,556,995

Gross tax appreciation on securities sold short
—

Gross tax depreciation on securities sold short
(53,116,386
)
Net tax appreciation (depreciation) on derivatives and translation of assets and liabilities in foreign currencies
(657
)
Net tax appreciation (depreciation)
$
(41,560,048
)
Other book-to-tax adjustments
$
(1,079,685
)
Undistributed ordinary income
—

Late-year ordinary loss deferral
$
(5,230
)
Post-October capital loss deferral
$
(4,069,118
)

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales. Other book-to-tax adjustments are attributable primarily to the tax deferral of losses on straddle positions.

Loss deferrals 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.
 
10. Recently Issued Accounting Standards
 
In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities” (ASU 2017-08). ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the impact that adopting ASU 2017-08 will have on the financial statements.


27

Financial Highlights
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
Per-Share Data
 
 
 
 
 
Ratios and Supplemental Data
 
 
 
 
Income From Investment Operations:
 
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment
Income
(Loss)(1)
Net
Realized
and
Unrealized
Gain (Loss)
Total From
Investment
Operations
Distributions From Net
Realized
Gains
Net Asset
Value,
End
of Period
Total
Return(2)
Operating
Expenses
Operating
Expenses
(before
expense
waiver)
Operating
Expenses
(excluding
expenses on
securities
sold short)
Net
Investment
Income
(Loss)
Net
Investment
Income
(Loss)
(before
expense
waiver)
Portfolio
Turnover
Rate
Net
Assets,
End of
Period
(in thousands)
Investor Class
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$10.27
0.02
(0.33)
(0.31)
(0.51)
$9.45
(3.04)%
3.48%
3.58%
1.66%
0.26%
0.16%
324%

$73,871

2018
$10.76
(0.12)
(0.13)
(0.25)
(0.24)
$10.27
(2.36)%
3.82%
4.07%
1.66%
(1.10)%
(1.35)%
307%

$232,629

2017
$10.73
(0.18)
0.49
0.31
(0.28)
$10.76
2.97%
3.68%
3.94%
1.64%
(1.65)%
(1.91)%
374%

$419,925

2016
$10.44
(0.19)
0.65
0.46
(0.17)
$10.73
4.42%
3.78%
4.08%
1.61%
(1.82)%
(2.12)%
679%

$253,885

2015
$10.22
(0.20)
0.62
0.42
(0.20)
$10.44
4.10%
3.88%
4.18%
1.60%
(1.95)%
(2.25)%
447%

$49,465

I Class
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$10.42
0.05
(0.35)
(0.30)
(0.51)
$9.61
(2.90)%
3.28%
3.38%
1.46%
0.46%
0.36%
324%

$188,718

2018
$10.89
(0.09)
(0.14)
(0.23)
(0.24)
$10.42
(2.15)%
3.62%
3.87%
1.46%
(0.90)%
(1.15)%
307%

$261,906

2017
$10.83
(0.16)
0.50
0.34
(0.28)
$10.89
3.23%
3.48%
3.74%
1.44%
(1.45)%
(1.71)%
374%

$184,717

2016
$10.52
(0.16)
0.64
0.48
(0.17)
$10.83
4.58%
3.58%
3.88%
1.41%
(1.62)%
(1.92)%
679%

$124,249

2015
$10.28
(0.18)
0.62
0.44
(0.20)
$10.52
4.28%
3.68%
3.98%
1.40%
(1.75)%
(2.05)%
447%

$6,013

A Class
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$10.10
(0.01)
(0.32)
(0.33)
(0.51)
$9.26
(3.29)%
3.73%
3.83%
1.91%
0.01%
(0.09)%
324%

$3,926

2018
$10.61
(0.15)
(0.12)
(0.27)
(0.24)
$10.10
(2.58)%
4.07%
4.32%
1.91%
(1.35)%
(1.60)%
307%

$12,055

2017
$10.61
(0.20)
0.48
0.28
(0.28)
$10.61
2.72%
3.93%
4.19%
1.89%
(1.90)%
(2.16)%
374%

$106,662

2016
$10.36
(0.22)
0.64
0.42
(0.17)
$10.61
4.07%
4.03%
4.33%
1.86%
(2.07)%
(2.37)%
679%

$76,630

2015
$10.16
(0.23)
0.63
0.40
(0.20)
$10.36
3.93%
4.13%
4.43%
1.85%
(2.20)%
(2.50)%
447%

$9,311



For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
Per-Share Data
 
 
 
 
 
Ratios and Supplemental Data
 
 
 
 
Income From Investment Operations:
 
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment
Income
(Loss)(1)
Net
Realized
and
Unrealized
Gain (Loss)
Total From
Investment
Operations
Distributions From Net
Realized
Gains
Net Asset
Value,
End
of Period
Total
Return(2)
Operating
Expenses
Operating
Expenses
(before
expense
waiver)
Operating
Expenses
(excluding
expenses on
securities
sold short)
Net
Investment
Income
(Loss)
Net
Investment
Income
(Loss)
(before
expense
waiver)
Portfolio
Turnover
Rate
Net
Assets,
End of
Period
(in thousands)
C Class
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$9.58
(0.07)
(0.31)
(0.38)
(0.51)
$8.69
(4.00)%
4.48%
4.58%
2.66%
(0.74)%
(0.84)%
324%

$10,648

2018
$10.16
(0.21)
(0.13)
(0.34)
(0.24)
$9.58
(3.39)%
4.82%
5.07%
2.66%
(2.10)%
(2.35)%
307%

$22,629

2017
$10.24
(0.27)
0.47
0.20
(0.28)
$10.16
2.03%
4.68%
4.94%
2.64%
(2.65)%
(2.91)%
374%

$34,958

2016
$10.08
(0.29)
0.62
0.33
(0.17)
$10.24
3.28%
4.78%
5.08%
2.61%
(2.82)%
(3.12)%
679%

$20,902

2015
$9.97
(0.30)
0.61
0.31
(0.20)
$10.08
3.10%
4.88%
5.18%
2.60%
(2.95)%
(3.25)%
447%

$7,948

R Class
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$9.92
(0.03)
(0.31)
(0.34)
(0.51)
$9.07
(3.45)%
3.98%
4.08%
2.16%
(0.24)%
(0.34)%
324%

$40

2018
$10.46
(0.16)
(0.14)
(0.30)
(0.24)
$9.92
(2.91)%
4.32%
4.57%
2.16%
(1.60)%
(1.85)%
307%

$79

2017
$10.49
(0.22)
0.47
0.25
(0.28)
$10.46
2.47%
4.18%
4.44%
2.14%
(2.15)%
(2.41)%
374%

$123

2016
$10.26
(0.21)
0.61
0.40
(0.17)
$10.49
3.91%
4.28%
4.58%
2.11%
(2.32)%
(2.62)%
679%

$76

2015
$10.10
(0.25)
0.61
0.36
(0.20)
$10.26
3.56%
4.38%
4.68%
2.10%
(2.45)%
(2.75)%
447%

$447

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.

See Notes to Financial Statements.


Report of Independent Registered Public Accounting Firm

To the shareholders and the Board of Directors of American Century Capital Portfolios, Inc.:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of AC Alternatives® Market Neutral Value Fund, one of the portfolios constituting the American Century Capital Portfolios, Inc. (the “Fund”), as of March 31, 2019, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of AC Alternatives® Market Neutral Value Fund of the American Century Capital Portfolios, Inc. as of March 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

Kansas City, Missouri
May 16, 2019

We have served as the auditor of one or more American Century investment companies since 1997.

30

Management

The Board of Directors

The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire by December 31 of the year in which they reach their 75th birthday.
Mr. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Director
Other Directorships Held During Past 5 Years
Independent Directors


Thomas W. Bunn (1953)
Director
Since 2017
Retired
67
SquareTwo Financial; Barings (formerly Babson Capital Funds Trust) (2013 to 2016)
Chris H. Cheesman
(1962)
Director
Since 2019
Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018)
67
None
Barry Fink
(1955)
Director
Since 2012 (independent since 2016)
Retired
67
None
Rajesh K. Gupta
(1960)
Director
Since 2019
Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to Present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019)
67
None


31

Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Director
Other Directorships Held During Past 5 Years
Independent Directors


Lynn Jenkins
(1963)
Director
Since 2019
United States Representative, U.S. House of Representatives (2009 to 2018)
67
MGP Ingredients, Inc.
Jan M. Lewis
(1957)
Director
Since 2011
Retired
67
None
John R. Whitten
(1946)
Director
Since 2008
Retired
67
Rudolph Technologies, Inc.
Stephen E. Yates
(1948)
Director and Chairman of the Board
Since 2012 (Chairman since 2018)
Retired
72
None
Interested Director


Jonathan S. Thomas
(1963)
Director and President
Since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
117
BioMed Valley Discoveries, Inc.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.

32

Officers

The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for 16 (in the case of Robert J. Leach, 15) investment companies in the American Century family of funds, unless otherwise noted. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Offices with the Funds
Principal Occupation(s) During the Past Five Years
Jonathan S. Thomas
(1963)
Director and President since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
R. Wes Campbell
(1974)
Chief Financial Officer and Treasurer since 2018
Investment Operations and Investment Accounting, ACS (2000 to present)
Amy D. Shelton
(1964)
Chief Compliance Officer and Vice President since 2014
Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present); Vice President, Client Interactions and Marketing, ACIS (2013 to 2014). Also serves as Vice President, ACIS
Charles A. Etherington
(1957)
General Counsel since 2007 and Senior Vice President since 2006
Attorney, ACC (1994 to present); Vice President, ACC (2005 to present); General Counsel, ACC (2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS
C. Jean Wade
(1964)
Vice President since 2012
Senior Vice President, ACS (2017 to present); Vice President, ACS (2000 to 2017)
Robert J. Leach
(1966)
Vice President since 2006
Vice President, ACS (2000 to present)
David H. Reinmiller
(1963)
Vice President since 2000
Attorney, ACC (1994 to present). Also serves as Vice President, ACIM and ACS
Ward D. Stauffer
(1960)
Secretary since 2005
Attorney, ACC (2003 to present)



33

Additional Information

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 the "About Us" page of American Century Investments’ website at americancentury.com and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.


Quarterly Portfolio Disclosure

The 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 on Form N-Q or as an exhibit to its reports on Form N-PORT. The fund’s Forms N-Q and Form N-PORT reports are available on the SEC’s website at sec.gov. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.


34

Other Tax Information

The following information is provided pursuant to provisions of the Internal Revenue Code.
The fund hereby designates up to the maximum amount allowable as qualified dividend income for the fiscal year ended March 31, 2019.
For corporate taxpayers, the fund hereby designates $3,927,603, or up to the maximum amount allowable, of ordinary income distributions paid during the fiscal year ended March 31, 2019 as qualified for the corporate dividends received deduction.

The fund hereby designates $1,859,637 as qualified short-term capital gain distributions for purposes of Internal Revenue Code Section 871 for the fiscal year ended March 31, 2019.

The fund hereby designates $14,688,163, or up to the maximum amount allowable, as long-term capital gain distributions (20% rate gain distributions) for the fiscal year ended March 31, 2019.



35

Notes



36

Notes



37

Notes



38

Notes



39

Notes























































40




acihorizblkd42.jpg
 
 
 
 
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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1-800-345-3533
 
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1-800-345-6488
 
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711
 
 
 
 
American Century Capital Portfolios, Inc.
 
 
 
 
Investment Advisor:
American Century Investment Management, Inc.
Kansas City, Missouri
 
 
 
 
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
 
 
 
 
©2019 American Century Proprietary Holdings, Inc. All rights reserved.
CL-ANN-92270 1905
 





acihorizblkd42.jpg
                  

 
 
 
Annual Report
 
 
 
March 31, 2019
 
 
 
Equity Income Fund
 
Investor Class (TWEIX)
 
I Class (ACIIX)
 
Y Class (AEIYX)
 
A Class (TWEAX)
 
C Class (AEYIX)
 
R Class (AEURX)
 
R5 Class (AEIUX)
 
R6 Class (AEUDX)

 













Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.

You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.





Table of Contents
 
President’s Letter
2

Performance
3

Portfolio Commentary

Fund Characteristics

Shareholder Fee Example

Schedule of Investments

Statement of Assets and Liabilities

Statement of Operations

Statement of Changes in Net Assets

Notes to Financial Statements

Financial Highlights

Report of Independent Registered Public Accounting Firm

Management

Additional Information






















Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.


President’s Letter

jthomasrev0514.jpg Jonathan Thomas

Dear Investor:

Thank you for reviewing this annual report for the period ended March 31, 2019. Annual reports help convey important information about fund returns, including market factors that affected performance during the reporting period. For additional, updated investment and market insights, we encourage you to visit our website, americancentury.com.

Markets Ended Roller-Coaster Period on Upswing

For the first half of the period, U.S. stocks climbed higher, while bond returns headed lower. Robust economic growth, bolstered by federal tax and regulatory reform, and record corporate earnings results fueled risk-on sentiment that drove stock prices higher. Meanwhile, the combination of strong economic data, the Federal Reserve’s (Fed’s) ongoing rate-hike campaign and an uptick in inflation pushed investment-grade bond returns lower.

Market trends began changing in late 2018. Mounting investor concerns about slowing global economic and earnings growth, U.S.-China trade tensions and rising interest rates triggered widespread volatility. Stock prices plunged as investors sought safe-haven investments, including U.S. Treasuries. Furthermore, the Fed issued another rate hike in December, its fourth of the year, and maintained its hawkish outlook. Investors feared the December rate increase and the Fed’s plans for two more rate hikes in 2019 were too aggressive, and risk-off investing remained in favor.

January brought a renewed sense of stability to the markets. Investors’ concerns about growth and trade eased, and the Fed changed course, pausing its rate-hike campaign amid moderating global growth and inflation. Valuations appeared attractive after the late-2018 sell-off, and risk-on investing resumed. In March, the Fed held rates steady again, hinting additional tightening was off the table for 2019. This news drove stock and bond returns higher and left both asset classes on an upward track to end the period. Overall, stocks (S&P 500 Index) overcame their late-2018 nosedive to gain 9.50% for the period. Bonds (Bloomberg Barclays U.S. Aggregate Bond Index) bounced back from losses early in the period to return 4.48%.

We expect volatility to remain a formidable factor as investors react to global growth trends, central bank policy and geopolitical developments. We believe this scenario underscores the importance of using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.

Sincerely,
image48a01.jpg
Jonathan Thomas
President and Chief Executive Officer
American Century Investments


2

Performance
 
Total Returns as of March 31, 2019
 
 
 
Average Annual Returns
 
 
Ticker Symbol
1 year
5 years
10 years
Since Inception
Inception Date
Investor Class
TWEIX
9.07%
9.35%
12.08%
—
8/1/94
Russell 3000 Value Index
—
5.30%
7.56%
14.49%
—
—
S&P 500 Index
—
9.50%
10.90%
15.91%
—
—
I Class
ACIIX
9.27%
9.56%
12.31%
—
7/8/98
Y Class
AEIYX
9.43%
—
—
7.72%
4/10/17
A Class
TWEAX
 
 
 
 
3/7/97
No sales charge
 
8.80%
9.08%
11.80%
—
 
With sales charge
 
2.60%
7.79%
11.14%
—
 
C Class
AEYIX
8.00%
8.27%
10.97%
—
7/13/01
R Class
AEURX
8.57%
8.81%
11.53%
—
8/29/03
R5 Class
AEIUX
9.41%
—
—
7.58%
4/10/17
R6 Class
AEUDX
9.43%
9.74%
—
9.90%
7/26/13
Average annual returns since inception are presented when ten years of performance history is not available.

Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.




















Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

3

Growth of $10,000 Over 10 Years
$10,000 investment made March 31, 2009
Performance for other share classes will vary due to differences in fee structure.

chart-4d3a8c11b82150e29be.jpg
Value on March 31, 2019
 
Investor Class — $31,298
 
 
Russell 3000 Value Index — $38,720
 
 
S&P 500 Index — $43,809
 

Total Annual Fund Operating Expenses
 
 
 
Investor Class
I Class
Y Class
A Class
C Class
R Class
R5 Class
R6 Class
0.92%
0.72%
0.57%
1.17%
1.92%
1.42%
0.72%
0.57%
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.














Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

4

Portfolio Commentary

Portfolio Managers: Phil Davidson, Kevin Toney, Michael Liss and Dan Gruemmer

Effective April 2019, portfolio manager Dan Gruemmer will leave the fund's management team, and Brian Woglom will join the fund as portfolio manager.

Performance Summary

Equity Income returned 9.07%* for the fiscal year ended March 31, 2019, outperforming the Russell 3000 Value Index, which returned 5.30%. The consumer staples sector drove outperformance relative to the benchmark due to security selection and an overweight allocation. Security selection in financials, industrials and consumer discretionary also benefited performance. Security selection and an underweight in real estate were major detractors. An underweight in health care and stock selection in the sector also hampered performance.

Consumer Staples Led Outperformance

Stock selection in the food products industry helped drive performance in the consumer staples sector. Nestle was a top contributor. The high-quality consumer staples company with leading market shares outperformed after reporting solid earnings. Investors were drawn to Nestle’s strong balance sheet and stable operations. The Procter & Gamble Co. was another top contributor in the sector. The large consumer packaged goods company posted its highest organic growth rate in nearly five years, benefiting from recent investments in product enhancements and product pricing. Importantly, P&G is stabilizing and improving market share in many key products.

Security selection in the financials and industrials sectors also was helpful. In industrials, waste disposal company Republic Services reported earnings that exceeded expectations. Additionally, the company expects better pricing on future contracts and continues to mitigate recycling headwinds stemming from China’s decision to suspend certain import licenses in 2017.

Other significant contributors included Automatic Data Processing. The stock of this human resources management company outperformed after it reported better-than-expected results across all metrics. Investors were particularly focused on the company’s operating margins, which exceeded expectations. Automatic Data Processing also raised its fiscal year guidance. ONE Gas was a key contributor as the gas utility stock outperformed after the company reported better-than-expected earnings. Enterprise Products Partners outperformed. We believe the pipeline master limited partnership (MLP) is one of the best positioned in the industry. Shares rallied after the company reported positive earnings. Following a pullback at the end of 2018, MLP valuations generally enjoyed a strong recovery in January alongside improving oil prices.

Real Estate Led Detractors

Real estate remains a modest underweight due to the lack of attractive investment opportunities. Both our underweight and stock selection weighed on performance. Weyerhaeuser was a key detractor in the sector. The company is one of the world’s largest owners of timberlands, and its stock underperformed due to declines in timber pricing, driven in part by a lower construction outlook and worries regarding export trade.

Health care detracted, largely due to stock selection in the health care equipment and supplies industry. Not owning Abbott Laboratories, a component of the fund’s benchmark, detracted.


* All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the fund's benchmark, other share classes may not. See page 3 for returns for all share classes.

5

Abbott’s stock rose throughout the year, and the company raised its dividend and guided to good results for 2019.

Elsewhere, Schlumberger was a significant detractor. The recovery in the oil field services markets has perpetually disappointed investor expectations. In particular, the non-U.S. oil field services markets (a historic stronghold for Schlumberger) have failed to stage a meaningful recovery. As a result, industry participants have been bidding contracts aggressively in an attempt to maintain operations, which has weighed on the revenue growth and profitability of Schlumberger and its peers. We still think Schlumberger is the best oil field services company, and we maintain an overweight position. The PNC Financial Services Group detracted from portfolio performance. PNC faced industry-wide headwinds in the form of slower loan growth, concerns about higher pricing on deposits and weaker-than-expected net interest margins.

A convertible preferred stock in Stanley Black & Decker, a hardware and tool maker, detracted even though the company beat earnings and revenue estimates. Commodity inflation caused margins to compress, and growth slowed. The convertible preferred stock position offers modestly lower volatility and a higher yield than the underlying common stock. Maxim Integrated Products underperformed as the semiconductor group pulled back amid concerns over storage pricing and slowing demand as 2019 capital spending appears weaker than expected.

Portfolio Positioning 

The portfolio seeks to invest in companies where we believe the valuation does not reflect the quality and normal earnings power of the company. This is intended to result in a higher yielding, less volatile portfolio versus the benchmark. Our process is based on individual security selection, but broad themes have emerged.
 
The portfolio was modestly overweight in the financials sector at the end of the fiscal year. Using our bottom-up investment approach, we have identified securities that we believe offer attractive risk/reward profiles. Our analysis has led us to attractive companies within the fragmented industrials sector. The portfolio was overweight industrials, but we have avoided names in the sector that we believe are lower quality. When oil prices fell in the fourth quarter of 2018, we added to some of our energy holdings as their valuations became more attractive.

As bottom-up investors, we generally find securities in the communication services sector to have relatively volatile business models and more leveraged balance sheets. As a result, the sector represented our largest underweight at the end of the period. The consumer discretionary sector is a consistent underweight in the portfolio. We generally seek attractively valued, higher-quality companies with sustainable business models, and stocks in the consumer discretionary sector fit that profile less frequently. We have maintained an underweight in real estate because our metrics show that valuations in the sector generally remain inflated.

6

Fund Characteristics 
MARCH 31, 2019
Top Ten Holdings
% of net assets
Medtronic plc
4.5%
Johnson & Johnson
3.7%
iShares Russell 1000 Value ETF
3.1%
PNC Financial Services Group, Inc. (The)
2.6%
TOTAL SA
2.4%
Procter & Gamble Co. (The)
2.3%
Verizon Communications, Inc.
2.3%
Chevron Corp.
2.3%
Bank of America Corp. (Convertible)
2.0%
Nestle SA
2.0%
 
 
Top Five Industries
% of net assets
Banks
13.4%
Oil, Gas and Consumable Fuels
8.4%
Pharmaceuticals
7.5%
Gas Utilities
4.8%
Health Care Equipment and Supplies
4.5%
 
 
Types of Investments in Portfolio
% of net assets
Domestic Common Stocks
67.6%
Foreign Common Stocks*
8.6%
Convertible Bonds
5.8%
Preferred Stocks
5.8%
Convertible Preferred Stocks
4.9%
Exchange-Traded Funds
3.1%
Total Equity Exposure
95.8%
Temporary Cash Investments
3.1%
Other Assets and Liabilities
1.1%
*Includes depositary shares, dual listed securities and foreign ordinary shares.




7

Shareholder Fee Example 

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.

The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from October 1, 2018 to March 31, 2019.

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 a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.

Hypothetical Example for Comparison Purposes

The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

8

 
Beginning
Account Value
10/1/18
Ending
Account Value
3/31/19
Expenses Paid
During Period(1)
10/1/18 - 3/31/19
 
Annualized
Expense Ratio(1)
Actual
 
 
 
 
Investor Class
$1,000
$1,022.40
$4.64
0.92%
I Class
$1,000
$1,023.40
$3.63
0.72%
Y Class
$1,000
$1,024.10
$2.88
0.57%
A Class
$1,000
$1,021.10
$5.90
1.17%
C Class
$1,000
$1,017.40
$9.66
1.92%
R Class
$1,000
$1,021.10
$7.16
1.42%
R5 Class
$1,000
$1,024.60
$3.63
0.72%
R6 Class
$1,000
$1,025.20
$2.88
0.57%
Hypothetical
 
 
 
 
Investor Class
$1,000
$1,020.34
$4.63
0.92%
I Class
$1,000
$1,021.34
$3.63
0.72%
Y Class
$1,000
$1,022.09
$2.87
0.57%
A Class
$1,000
$1,019.10
$5.89
1.17%
C Class
$1,000
$1,015.36
$9.65
1.92%
R Class
$1,000
$1,017.85
$7.14
1.42%
R5 Class
$1,000
$1,021.34
$3.63
0.72%
R6 Class
$1,000
$1,022.09
$2.87
0.57%
(1)
Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.

9

Schedule of Investments

MARCH 31, 2019
 
Shares/
Principal Amount
Value
COMMON STOCKS — 76.2%
 
 
Aerospace and Defense — 1.2%
 
 
BAE Systems plc
2,190,000

$
13,759,807

Raytheon Co.
686,300

124,961,504

 
 
138,721,311

Air Freight and Logistics — 0.7%
 
 
United Parcel Service, Inc., Class B
668,818

74,733,723

Automobiles — 0.3%
 
 
Honda Motor Co. Ltd.
846,100

22,864,473

Toyota Motor Corp.
149,800

8,767,956

 
 
31,632,429

Banks — 6.3%
 
 
Comerica, Inc.
999,400

73,276,008

Commerce Bancshares, Inc.
539,633

31,331,092

JPMorgan Chase & Co.
1,999,597

202,419,204

PNC Financial Services Group, Inc. (The)
2,398,518

294,202,218

SunTrust Banks, Inc.
1,199,110

71,047,268

U.S. Bancorp
574,238

27,672,529

Wells Fargo & Co.
482,700

23,324,064

 
 
723,272,383

Capital Markets — 2.8%
 
 
AllianceBernstein Holding LP
595,378

17,200,470

Bank of New York Mellon Corp. (The)
3,395,100

171,214,893

BlackRock, Inc.
109,900

46,967,963

Janus Henderson Group plc
998,321

24,938,059

Northern Trust Corp.
698,840

63,182,124

 
 
323,503,509

Chemicals — 1.0%
 
 
Akzo Nobel NV
299,400

26,528,952

Dow, Inc.(1)(2) 
87,255

4,504,993

DowDuPont, Inc.
2,299,266

82,934,525

 
 
113,968,470

Commercial Services and Supplies — 2.2%
 
 
Republic Services, Inc.
2,492,261

200,327,939

Waste Management, Inc.
436,669

45,374,276

 
 
245,702,215

Communications Equipment — 1.7%
 
 
Cisco Systems, Inc.
3,498,391

188,878,130

Containers and Packaging — 0.2%
 
 
Bemis Co., Inc.
405,802

22,513,895

Distributors — 0.4%
 
 
Genuine Parts Co.
357,441

40,044,115


10

 
Shares/
Principal Amount
Value
Diversified Telecommunication Services — 2.3%
 
 
Verizon Communications, Inc.
4,498,237

$
265,980,754

Electric Utilities — 2.4%
 
 
Eversource Energy
2,398,400

170,166,480

Pinnacle West Capital Corp.
1,099,817

105,120,509

 
 
275,286,989

Electrical Equipment — 1.4%
 
 
ABB Ltd.
1,595,900

29,986,733

Hubbell, Inc.
1,098,600

129,612,828

 
 
159,599,561

Electronic Equipment, Instruments and Components — 0.3%
 
 
TE Connectivity Ltd.
384,000

31,008,000

Energy Equipment and Services — 1.5%
 
 
Baker Hughes a GE Co.
996,837

27,632,321

Schlumberger Ltd.
3,299,931

143,777,994

 
 
171,410,315

Equity Real Estate Investment Trusts (REITs) — 3.2%
 
 
Boston Properties, Inc.
189,700

25,397,036

Public Storage
399,650

87,035,777

Welltower, Inc.
1,596,896

123,919,130

Weyerhaeuser Co.
5,092,684

134,141,296

 
 
370,493,239

Food and Staples Retailing — 0.6%
 
 
Walmart, Inc.
736,383

71,819,434

Food Products — 3.5%
 
 
Hershey Co. (The)
569,200

65,361,236

Mondelez International, Inc., Class A
2,199,000

109,774,080

Nestle SA
2,388,400

227,626,573

 
 
402,761,889

Gas Utilities — 4.8%
 
 
Atmos Energy Corp.
1,999,146

205,772,098

ONE Gas, Inc.
2,298,296

204,617,293

Spire, Inc.
1,699,258

139,831,941

 
 
550,221,332

Health Care Equipment and Supplies — 4.5%
 
 
Medtronic plc
5,597,979

509,863,927

Health Care Providers and Services — 1.2%
 
 
Quest Diagnostics, Inc.
1,498,158

134,714,367

Hotels, Restaurants and Leisure — 1.0%
 
 
Carnival Corp.
996,603

50,547,704

Sodexo SA
598,700

65,923,461

 
 
116,471,165

Household Products — 3.5%
 
 
Kimberly-Clark Corp.
1,098,404

136,092,256

Procter & Gamble Co. (The)
2,576,359

268,070,154

 
 
404,162,410


11

 
Shares/
Principal Amount
Value
Industrial Conglomerates — 0.7%
 
 
3M Co.
290,628

$
60,386,686

Smiths Group plc
1,297,500

24,250,473

 
 
84,637,159

Insurance — 4.3%
 
 
Aflac, Inc.
3,695,900

184,795,000

Chubb Ltd.
1,491,528

208,933,242

Marsh & McLennan Cos., Inc.
1,068,605

100,342,010

 
 
494,070,252

IT Services — 2.9%
 
 
Automatic Data Processing, Inc.
1,399,751

223,596,225

Paychex, Inc.
1,299,700

104,235,940

 
 
327,832,165

Machinery — 1.5%
 
 
Atlas Copco AB, B Shares
2,297,800

56,868,530

Deere & Co.
697,823

111,540,028

 
 
168,408,558

Oil, Gas and Consumable Fuels — 7.5%
 
 
Anadarko Petroleum Corp.
397,900

18,096,492

Chevron Corp.
2,098,916

258,544,473

Enterprise Products Partners LP
7,196,400

209,415,240

EQM Midstream Partners LP
360,871

16,661,414

Royal Dutch Shell plc, B Shares
998,700

31,582,367

Shell Midstream Partners LP
2,398,136

49,041,881

TOTAL SA
4,980,358

276,654,277

 
 
859,996,144

Personal Products — 0.4%
 
 
Unilever NV CVA
797,200

46,304,748

Pharmaceuticals — 7.5%
 
 
Johnson & Johnson
2,992,887

418,375,673

Merck & Co., Inc.
1,595,222

132,674,614

Novartis AG
1,594,900

153,411,521

Pfizer, Inc.
3,497,400

148,534,578

 
 
852,996,386

Road and Rail — 0.8%
 
 
Norfolk Southern Corp.
467,692

87,406,958

Semiconductors and Semiconductor Equipment — 1.7%
 
 
Applied Materials, Inc.
1,199,761

47,582,521

Intel Corp.
229,600

12,329,520

Maxim Integrated Products, Inc.
2,597,800

138,125,026

 
 
198,037,067

Software — 0.8%
 
 
Microsoft Corp.
765,336

90,263,728

Thrifts and Mortgage Finance — 1.1%
 
 
Capitol Federal Financial, Inc.(3) 
9,199,479

122,813,045

TOTAL COMMON STOCKS
(Cost $6,983,315,751)
 
8,699,529,772


12

 
Shares/
Principal Amount
Value
PREFERRED STOCKS — 5.8%
 
 
Banks — 4.3%
 
 
Bank of America Corp., 5.875%
116,802,000

$
118,685,432

Citigroup, Inc., 5.95%
88,872,000

90,479,250

U.S. Bancorp, 5.30%
139,717,000

142,292,683

Wells Fargo & Co., 6.38%
139,958,000

141,007,685

 
 
492,465,050

Capital Markets — 0.6%
 
 
Goldman Sachs Group, Inc. (The), 5.30%
66,678,000

67,209,757

Oil, Gas and Consumable Fuels — 0.9%
 
 
Plains All American Pipeline LP, 6.125%
109,800,000

103,099,455

TOTAL PREFERRED STOCKS
(Cost $665,559,065)
 
662,774,262

CONVERTIBLE BONDS — 5.8%
 
 
Airlines — 0.2%
 
 
Citigroup Global Markets Holdings, Inc., (convertible into Southwest Airlines Co.), 6.35%, 9/17/19(4)(5)
$
399,000

20,411,351

Biotechnology — 0.2%
 
 
Credit Suisse AG, (convertible into Celgene Corp.), 9.10%, 9/19/19(4)(5)
199,900

18,083,936

Construction Materials — 1.5%
 
 
Credit Suisse AG, (convertible into Martin Marietta Materials, Inc.), 3.60%, 4/4/19(4)(5)
88,400

17,381,753

Credit Suisse AG, (convertible into Martin Marietta Materials, Inc.), 5.50%, 5/14/19(4)(5)
99,000

19,146,481

Merrill Lynch International & Co. C.V., (convertible into Martin Marietta Materials, Inc.), 9.80%, 6/19/19(4)(5)
111,800

20,391,577

Morgan Stanley B.V., (convertible into Martin Marietta Materials, Inc.), 4.54%, 5/10/19(4)(5)
86,500

17,384,688

Royal Bank of Canada, (convertible into Martin Marietta Materials, Inc.), 7.45%, 7/26/19(4)(5)
49,900

9,148,065

Royal Bank of Canada, (convertible into Martin Marietta Materials, Inc.), 5.60%, 8/12/19(4)(5)
95,000

17,842,174

Royal Bank of Canada, (convertible into Martin Marietta Materials, Inc.), 5.12%, 5/9/19(4)(5)
99,499

19,319,446

Royal Bank of Canada, (convertible into Martin Marietta Materials, Inc.), 6.65%, 8/2/19(4)(5)
64,800

12,083,897

Wells Fargo Bank N.A., (convertible into Martin Marietta Materials, Inc.), 5.10%, 8/1/19(4)(5)
199,900

37,352,211

 
 
170,050,292

Diversified Financial Services — 1.2%
 
 
Citigroup Global Markets Holdings, Inc., (convertible into Berkshire Hathaway, Inc., Class B), 1.63%, 8/13/19(4)(5)
109,900

22,081,368

Goldman Sachs International, (convertible into Berkshire Hathaway, Inc., Class B), 2.75%, 7/10/19(4)(5)
344,600

69,422,595

UBS AG, (convertible into Berkshire Hathaway, Inc., Class B), 5.50%, 7/1/19(4)(5)
230,000

45,642,860

 
 
137,146,823

Energy Equipment and Services — 0.4%
 
 
Wells Fargo Bank N.A., (convertible into Schlumberger Ltd.), 8.93%, 7/22/19(4)(5)
949,000

40,727,885


13

 
Shares/
Principal Amount
Value
Household Durables — 0.1%
 
 
Morgan Stanley B.V., (convertible into Whirlpool Corp.), 7.91%, 4/11/19(4)(5)
$
129,900

$
15,359,025

Insurance — 0.1%
 
 
AXA SA, 7.25%, 5/15/21(5)
8,981,000

9,026,937

Multiline Retail — 0.2%
 
 
Merrill Lynch International & Co. C.V., (convertible into Target Corp.), 8.50%, 5/31/19(4)(5)
398,800

28,694,915

Semiconductors and Semiconductor Equipment — 1.7%
 
 
Microchip Technology, Inc., 1.625%, 2/15/27
45,920,000

50,525,776

Teradyne, Inc., 1.25%, 12/15/23
103,950,000

145,509,970

 
 
196,035,746

Specialty Retail — 0.2%
 
 
Royal Bank of Canada, (convertible into Lowe’s Cos., Inc.), 8.12%, 6/17/19(4)(5)
211,800

20,688,888

TOTAL CONVERTIBLE BONDS
(Cost $629,454,522)
 
656,225,798

CONVERTIBLE PREFERRED STOCKS — 4.9%
 
 
Banks — 2.8%
 
 
Bank of America Corp., 7.25%
177,164

230,644,497

Wells Fargo & Co., 7.50%
67,957

87,824,229

 
 
318,468,726

Chemicals — 0.8%
 
 
International Flavors & Fragrances, Inc., 6.00%, 9/15/21
1,899,912

94,881,605

Machinery — 1.3%
 
 
Stanley Black & Decker, Inc., 5.375%, 5/15/20
1,535,569

149,717,977

TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $535,864,886)
 
563,068,308

EXCHANGE-TRADED FUNDS — 3.1%
 
 
iShares Russell 1000 Value ETF
(Cost $324,129,040)
2,856,530

352,752,890

TEMPORARY CASH INVESTMENTS — 3.1%
 
 
Federal Home Loan Bank Discount Notes, 2.30%, 4/1/19(6)
$
255,104,000

255,104,000

Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.125% - 2.875%, 9/30/19 - 2/15/44, valued at $82,125,550), in a joint trading account at 2.35%, dated 3/29/19, due 4/1/19 (Delivery value $80,500,727)
 
80,484,965

Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.50%, 8/15/23, valued at $13,722,077), at 1.25%, dated 3/29/19, due 4/1/19 (Delivery value $13,454,401)
 
13,453,000

TOTAL TEMPORARY CASH INVESTMENTS
(Cost $349,041,965)
 
349,041,965

TOTAL INVESTMENT SECURITIES — 98.9%
(Cost $9,487,365,229)
 
11,283,392,995

OTHER ASSETS AND LIABILITIES — 1.1%
 
129,641,305

TOTAL NET ASSETS — 100.0%
 
$
11,413,034,300



14

WRITTEN OPTIONS CONTRACTS
Reference Entity
Contracts
Type
Exercise
Price
Expiration
Date
Underlying
Notional
Amount
Premiums
Received
Value
Carnival Corp.
2,500

Put
$
50.00

4/18/19
$
12,680,000

$
(168,786
)
$
(143,750
)
Comerica, Inc.
1,852

Put
$
70.00

4/18/19
$
13,578,864

(241,053
)
(132,418
)
Comerica, Inc.
2,000

Put
$
75.00

4/18/19
$
14,664,000

(650,955
)
(547,000
)
Cracker Barrel Old Country Store, Inc.
15

Put
$
140.00

4/18/19
$
242,415

(656
)
(188
)
Deere & Co.
1,750

Put
$
135.00

4/18/19
$
27,972,000

(124,656
)
(21,875
)
Johnson Controls International plc
1,000

Put
$
30.00

4/18/19
$
3,694,000

(24,311
)
(1,500
)
Medtronic plc
3,016

Put
$
89.00

4/18/19
$
27,469,728

(256,691
)
(182,468
)
PNC Financial Services Group, Inc. (The)
404

Put
$
113.00

4/18/19
$
4,955,464

(48,601
)
(20,604
)
Quest Diagnostics, Inc.
1,000

Put
$
80.00

4/18/19
$
8,992,000

(133,650
)
(12,500
)
United Parcel Service, Inc.
681

Put
$
99.00

4/18/19
$
7,609,494

(25,865
)
(4,086
)
 
 
 
 
 
 
$
(1,675,224
)
$
(1,066,389
)
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Currency Purchased
Currency Sold
Counterparty
Settlement Date
Unrealized Appreciation
(Depreciation)
USD
315,944,443

CHF
310,841,940

UBS AG
6/28/19
$
1,201,756

USD
8,959,170

CHF
8,847,897

UBS AG
6/28/19
241

USD
342,412,976

EUR
300,120,057

Credit Suisse AG
6/28/19
3,273,333

USD
54,817,839

GBP
41,354,819

JPMorgan Chase Bank N.A.
6/28/19
721,771

JPY
105,829,717

USD
964,893

Bank of America N.A.
6/28/19
(3,499
)
USD
28,161,247

JPY
3,078,066,580

Bank of America N.A.
6/28/19
199,026

USD
780,659

JPY
85,624,112

Bank of America N.A.
6/28/19
2,819

USD
45,495,929

SEK
417,188,568

Goldman Sachs & Co.
6/28/19
330,419

 
 
 
 
 
 
$
5,725,866



15

NOTES TO SCHEDULE OF INVESTMENTS
CHF
-
Swiss Franc
CVA
-
Certificaten Van Aandelen
EUR
-
Euro
GBP
-
British Pound
JPY
-
Japanese Yen
SEK
-
Swedish Krona
USD
-
United States Dollar
(1)
Non-income producing.
(2)
When-issued security. The issue price and yield are fixed on the date of the commitment, but payment and delivery are scheduled for a future date.
(3)
Affiliated Company: the fund’s holding represents ownership of 5% or more of the voting securities of the company; therefore, the company is affiliated as defined in the Investment Company Act of 1940.
(4)
Equity-linked debt security. The aggregated value of these securities at the period end was $451,163,115, which represented 4.0% of total net assets.
(5)
Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration, normally to qualified institutional investors. The aggregate value of these securities at the period end was $460,190,052, which represented 4.0% of total net assets.
(6)
The rate indicated is the yield to maturity at purchase.


See Notes to Financial Statements.

16

Statement of Assets and Liabilities
MARCH 31, 2019
 
Assets
 
Investment securities - unaffiliated, at value (cost of $9,381,418,194)
$
11,160,579,950

Investment securities - affiliated, at value (cost of $105,947,035)
122,813,045

Total investment securities, at value (cost of $9,487,365,229)
11,283,392,995

Cash
225,441

Deposits with broker for options contracts
33,241,830

Receivable for investments sold
121,510,560

Receivable for capital shares sold
9,828,749

Unrealized appreciation on forward foreign currency exchange contracts
5,729,365

Dividends and interest receivable
36,485,636

 
11,490,414,576

 
 
Liabilities
 
Written options, at value (premiums received $1,675,224)
1,066,389

Payable for investments purchased
56,581,182

Payable for capital shares redeemed
11,055,863

Unrealized depreciation on forward foreign currency exchange contracts
3,499

Accrued management fees
7,999,831

Distribution and service fees payable
673,512

 
77,380,276

 
 
Net Assets
$
11,413,034,300

 
 
Net Assets Consist of:
 
Capital (par value and paid-in surplus)
$
9,621,478,805

Distributable earnings
1,791,555,495

 
$
11,413,034,300


 
Net Assets
Shares Outstanding
Net Asset Value
Per Share
Investor Class, $0.01 Par Value

$6,081,354,822

699,434,996

$8.69
I Class, $0.01 Par Value

$2,826,256,189

324,720,392

$8.70
Y Class, $0.01 Par Value

$230,772,949

26,485,930

$8.71
A Class, $0.01 Par Value

$850,116,627

97,792,148

$8.69*
C Class, $0.01 Par Value

$538,725,870

61,985,131

$8.69
R Class, $0.01 Par Value

$88,499,139

10,219,619

$8.66
R5 Class, $0.01 Par Value

$891,854

102,544

$8.70
R6 Class, $0.01 Par Value

$796,416,850

91,417,089

$8.71
*Maximum offering price $9.22 (net asset value divided by 0.9425).


See Notes to Financial Statements.

17

Statement of Operations
YEAR ENDED MARCH 31, 2019
Investment Income (Loss)
 
Income:
 
Dividends (including $13,923,844 from affiliates and net of foreign taxes withheld of $3,755,783)
$
297,179,229

Interest
48,096,903

 
345,276,132

 
 
Expenses:
 
Management fees
94,798,428

Distribution and service fees:
 
A Class
2,186,810

C Class
5,749,291

R Class
449,489

Directors' fees and expenses
313,803

Other expenses
30,381

 
103,528,202

 
 
Net investment income (loss)
241,747,930

 
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) on:
 
Investment transactions (including $27,451,804 from affiliates)
384,215,158

Forward foreign currency exchange contract transactions
61,084,298

Written options contract transactions
4,867,472

Foreign currency translation transactions
(188,647
)
 
449,978,281

 
 
Change in net unrealized appreciation (depreciation) on:
 
Investments (including $44,699,878 from affiliates)
283,576,899

Forward foreign currency exchange contracts
5,879,117

Written options contracts
608,835

Translation of assets and liabilities in foreign currencies
(93,772
)
 
289,971,079

 
 
Net realized and unrealized gain (loss)
739,949,360

 
 
Net Increase (Decrease) in Net Assets Resulting from Operations
$
981,697,290



See Notes to Financial Statements.


18

Statement of Changes in Net Assets
YEARS ENDED MARCH 31, 2019 AND MARCH 31, 2018
Increase (Decrease) in Net Assets
March 31, 2019
March 31, 2018
Operations
 
 
Net investment income (loss)
$
241,747,930

$
226,575,202

Net realized gain (loss)
449,978,281

886,224,657

Change in net unrealized appreciation (depreciation)
289,971,079

(421,121,774
)
Net increase (decrease) in net assets resulting from operations
981,697,290

691,678,085

 
 
 
Distributions to Shareholders
 
 
From earnings:(1)
 
 
Investor Class
(446,677,737
)
(782,791,137
)
I Class
(208,964,964
)
(318,541,474
)
Y Class
(16,942,339
)
(25,404,372
)
A Class
(61,295,918
)
(110,731,127
)
C Class
(35,473,742
)
(69,035,895
)
R Class
(6,180,212
)
(11,263,849
)
R5 Class
(63,192
)
(3,854
)
R6 Class
(56,544,741
)
(66,334,026
)
Decrease in net assets from distributions
(832,142,845
)
(1,384,105,734
)
 
 
 
Capital Share Transactions
 
 
Net increase (decrease) in net assets from capital share transactions (Note 5)
(415,119,291
)
69,850,724

 
 
 
Net increase (decrease) in net assets
(265,564,846
)
(622,576,925
)
 
 
 
Net Assets
 
 
Beginning of period
11,678,599,146

12,301,176,071

End of period
$
11,413,034,300

$
11,678,599,146


(1)
Prior period presentation has been updated to reflect the current period combination of distributions to shareholders from net investment income and net realized gains. Distributions from net investment income were $(133,467,726), $(53,387,964), $(3,600,971), $(16,523,339), $(5,851,215), $(1,430,543), $(2,671) and $(12,767,970) for Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class, respectively. Distributions from net realized gains were $(649,323,411), $(265,153,510), $(21,803,401), $(94,207,788), $(63,184,680), $(9,833,306), $(1,183) and $(53,566,056) for Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class, respectively.

See Notes to Financial Statements.


19

Notes to Financial Statements

MARCH 31, 2019

1. Organization

American Century Capital Portfolios, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Equity Income Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek current income. Capital appreciation is a secondary objective.

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. Sale of the Y Class and R5 Class commenced on April 10, 2017.

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 per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
 
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
 
Fixed income securities are valued at the evaluated mean as provided by independent pricing services or at the mean of the most recent bid and asked prices as provided by investment dealers. Corporate bonds, U.S. Treasury and Government Agency securities and convertible bonds are valued using market models that consider trade data, quotations from dealers and active market makers, relevant yield curve and spread data, creditworthiness, trade data or market information on comparable securities, and other relevant security specific information.

Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value. Exchange-traded options contracts are valued at a mean as provided by independent pricing services. Forward foreign currency exchange contracts are valued at the mean of the appropriate forward exchange rate at the close of the NYSE as provided by an independent pricing service.
 

20

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 net asset value 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. If significant fluctuations in foreign markets are identified, 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.
 
Equity-Linked Debt and Linked-Equity Securities — The fund may invest in hybrid equity securities, which usually convert into common stock at a date predetermined by the issuer. These securities generally offer a higher dividend yield than that of the common stock to which the security is linked. These instruments are issued by a company other than the one to which the security is linked and carry the credit of the issuer, not that of the underlying common stock. The securities’ appreciation is limited based on a predetermined final cap price at the date of the conversion. Risks of investing in these securities include, but are not limited to, a set time to capture the yield advantage, limited appreciation potential, decline in value of the underlying stock, and failure of the issuer to pay dividends or to deliver common stock at maturity.
 
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.
 

21

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, if any, are generally declared and paid quarterly. Distributions from net realized gains, if any, are generally declared and paid annually. 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 all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. 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).

22

The management fee schedule range and the effective annual management fee for each class for the period ended March 31, 2019 are as follows:
 
Management Fee
Schedule Range
Effective Annual
Management Fee
Investor Class
0.80% to 1.00%
0.91%
I Class
0.60% to 0.80%
0.71%
Y Class
0.45% to 0.65%
0.56%
A Class
0.80% to 1.00%
0.91%
C Class
0.80% to 1.00%
0.91%
R Class
0.80% to 1.00%
0.91%
R5 Class
0.60% to 0.80%
0.71%
R6 Class
0.45% to 0.65%
0.56%

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 March 31, 2019 are detailed in the Statement of Operations.

Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
 
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $109,102,530 and $63,418,477, respectively. The effect of interfund transactions on the Statement of Operations was $3,316,295 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 March 31, 2019 were $8,466,598,974 and $9,578,003,188, respectively.


23

5. Capital Share Transactions

Transactions in shares of the fund were as follows:
 
Year ended
March 31, 2019
Year ended
March 31, 2018(1)
 
Shares
Amount
Shares
Amount
Investor Class/Shares Authorized
5,100,000,000

 
4,650,000,000

 
Sold
105,034,421

$
904,564,870

220,034,394

$
2,024,700,321

Issued in reinvestment of distributions
52,518,503

438,594,459

85,744,916

768,320,686

Redeemed
(213,342,954
)
(1,849,710,287
)
(352,933,378
)
(3,256,891,415
)
 
(55,790,030
)
(506,550,958
)
(47,154,068
)
(463,870,408
)
I Class/Shares Authorized
2,200,000,000

 
1,525,000,000

 
Sold
116,496,183

1,011,040,819

189,466,471

1,756,767,174

Issued in reinvestment of distributions
22,330,282

186,839,532

31,636,282

283,692,561

Redeemed
(118,643,000
)
(1,017,050,590
)
(82,436,401
)
(754,037,843
)
 
20,183,465

180,829,761

138,666,352

1,286,421,892

Y Class/Shares Authorized
200,000,000

 
120,000,000

 
Sold
6,966,057

60,695,249

27,242,901

253,718,677

Issued in reinvestment of distributions
1,947,186

16,329,263

2,809,370

25,172,515

Redeemed
(7,493,667
)
(64,749,944
)
(4,985,917
)
(45,825,277
)
 
1,419,576

12,274,568

25,066,354

233,065,915

A Class/Shares Authorized
725,000,000

 
700,000,000

 
Sold
17,752,502

153,964,874

15,531,220

142,337,369

Issued in reinvestment of distributions
6,980,719

58,246,057

11,661,099

104,352,195

Redeemed
(35,261,101
)
(305,057,790
)
(153,166,775
)
(1,408,340,462
)
 
(10,527,880
)
(92,846,859
)
(125,974,456
)
(1,161,650,898
)
C Class/Shares Authorized
500,000,000

 
485,000,000

 
Sold
8,279,818

70,756,974

7,910,258

72,726,799

Issued in reinvestment of distributions
3,837,636

31,864,627

6,930,065

61,865,508

Redeemed
(23,123,153
)
(200,253,311
)
(19,731,607
)
(181,313,681
)
 
(11,005,699
)
(97,631,710
)
(4,891,284
)
(46,721,374
)
R Class/Shares Authorized
85,000,000

 
90,000,000

 
Sold
1,038,898

8,958,660

1,453,987

13,324,491

Issued in reinvestment of distributions
732,996

6,081,671

1,242,566

11,076,926

Redeemed
(2,422,060
)
(20,768,459
)
(4,434,603
)
(40,627,431
)
 
(650,166
)
(5,728,128
)
(1,738,050
)
(16,226,014
)
R5 Class/Shares Authorized
30,000,000

 
50,000,000

 
Sold
62,000

543,095

81,148

738,366

Issued in reinvestment of distributions
7,548

63,192

437

3,854

Redeemed
(42,901
)
(380,039
)
(5,688
)
(49,793
)
 
26,647

226,248

75,897

692,427

R6 Class/Shares Authorized
600,000,000

 
400,000,000

 
Sold
22,090,431

191,070,418

34,905,890

318,810,650

Issued in reinvestment of distributions
6,747,076

56,541,527

7,389,571

66,334,026

Redeemed
(17,657,119
)
(153,304,158
)
(15,915,475
)
(147,005,492
)
 
11,180,388

94,307,787

26,379,986

238,139,184

Net increase (decrease)
(45,163,699
)
$
(415,119,291
)
10,430,731

$
69,850,724


(1)
April 10, 2017 (commencement of sale) through March 31, 2018 for the Y Class and R5 Class.


24

6. Affiliated Company Transactions

If a fund's holding represents ownership of 5% or more of the voting securities of a company, the company is affiliated as defined in the 1940 Act. A summary of transactions for each company which is or was an affiliate at or during the period ended March 31, 2019 follows (amounts in thousands):
Company
Beginning Value
Purchase
Cost
Sales
Cost
Change in Net Unrealized Appreciation (Depreciation)
Ending
Value
Ending
Shares
Net Realized
Gain (Loss)
Income
Capitol Federal Financial, Inc.
$
113,551

$
65

—

$
9,197

$
122,813

9,199

—

$
9,016

ONE Gas, Inc.
200,615

2,471

$
33,972

35,503

(1) 

(1) 

$
27,452

4,908

 
$
314,166

$
2,536

$
33,972

$
44,700

$
122,813

9,199

$
27,452

$
13,924

(1) Company was not an affiliate at March 31, 2019.

7. 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.
 

25

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
 
 
 
Aerospace and Defense
$
124,961,504

$
13,759,807

—

Automobiles
—

31,632,429

—

Chemicals
87,439,518

26,528,952

—

Electrical Equipment
129,612,828

29,986,733

—

Food Products
175,135,316

227,626,573

—

Hotels, Restaurants and Leisure
50,547,704

65,923,461

—

Industrial Conglomerates
60,386,686

24,250,473

—

Machinery
111,540,028

56,868,530

—

Oil, Gas and Consumable Fuels
551,759,500

308,236,644

—

Personal Products
—

46,304,748

—

Pharmaceuticals
699,584,865

153,411,521

—

Other Industries
5,724,031,952

—

—

Preferred Stocks
—

662,774,262

—

Convertible Bonds
—

656,225,798

—

Convertible Preferred Stocks
563,068,308

—

—

Exchange-Traded Funds
352,752,890

—

—

Temporary Cash Investments
—

349,041,965

—

 
$
8,630,821,099

$
2,652,571,896

—

Other Financial Instruments
 
 
 
Forward Foreign Currency Exchange Contracts
—

$
5,729,365

—

 
 
 
 
Liabilities
 
 
 
Other Financial Instruments
 
 
 
Forward Foreign Currency Exchange Contracts
—

$
3,499

—

Written Options Contracts
$
1,066,389

—

—

 
$
1,066,389

$
3,499

—



26

8. 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 options contracts based on an equity index or specific security in order to manage its exposure to changes in market conditions. The risks of entering into equity price risk derivative instruments include the possible lack of liquidity, failure of the counterparty to meet its obligations, and that there may be unfavorable changes in the underlying investments or instruments. A fund may purchase or write an option contract to protect against declines in market value on the underlying index or security. A purchased option contract provides the fund a right, but not an obligation, to buy (call) or sell (put) an equity-related asset at a specified exercise price within a certain period or on a specific date. A written option contract holds the corresponding obligation to sell (call writing) or buy (put writing) the underlying equity-related asset if the purchaser exercises the option contract. The buyer pays the seller an initial purchase price (premium) for this right. Option contracts purchased by a fund are accounted for in the same manner as marketable portfolio securities. The premium received by a fund for option contracts written is recorded as a liability and valued daily. The proceeds from securities sold through the exercise of option contracts are decreased by the premium paid to purchase the option contracts. A fund may recognize a realized gain or loss when the option contract is closed, exercised or expires. Net realized and unrealized gains or losses occurring during the holding period of purchased options contracts are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively. Net realized and unrealized gains or losses occurring during the holding period of written options contracts are a component of net realized gain (loss) on written options contract transactions and change in net unrealized appreciation (depreciation) on written options contracts, respectively. The fund’s average exposure to equity price risk derivative instruments held during the period was 5,257 written options contracts.
 
Foreign Currency Risk — The fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The value of foreign investments held by a fund may be significantly affected by changes in foreign currency exchange rates. The dollar value of a foreign security generally decreases when the value of the dollar rises against the foreign currency in which the security is denominated and tends to increase when the value of the dollar declines against such foreign currency. A fund may enter into forward foreign currency exchange contracts to reduce a fund's exposure to foreign currency exchange rate fluctuations. The net U.S. dollar value of foreign currency underlying all contractual commitments held by a fund and the resulting unrealized appreciation or depreciation are determined daily. Realized gain or loss is recorded upon the termination of the contract. Net realized and unrealized gains or losses occurring during the holding period of forward foreign currency exchange contracts are a component of net realized gain (loss) on forward foreign currency exchange contract transactions and change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts, respectively. A fund bears the risk of an unfavorable change in the foreign currency exchange rate underlying the forward contract. Additionally, losses, up to the fair value, may arise if the counterparties do not perform under the contract terms. The fund's average U.S. dollar exposure to foreign currency risk derivative instruments held during the period was $831,822,154.

Value of Derivative Instruments as of March 31, 2019
 
Asset Derivatives
Liability Derivatives
Type of Risk Exposure
Location on Statement of Assets and Liabilities
Value
Location on Statement of Assets and Liabilities
Value
Equity Price Risk
Written Options
—

Written Options
$
1,066,389

Foreign Currency Risk
Unrealized appreciation on forward foreign currency exchange contracts
$
5,729,365

Unrealized depreciation on forward foreign currency exchange contracts
3,499

 
 
$
5,729,365

 
$
1,069,888



27

Effect of Derivative Instruments on the Statement of Operations for the Year Ended March 31, 2019
 
Net Realized Gain (Loss)
Change in Net Unrealized Appreciation (Depreciation)
Type of Risk Exposure
Location on Statement of Operations
Value
Location on Statement of Operations
Value
Equity Price Risk
Net realized gain (loss) on written options contract transactions
$
4,867,472

Change in net unrealized appreciation (depreciation) on written options contracts
$
608,835

Foreign Currency Risk
Net realized gain (loss) on forward foreign currency exchange contract transactions
61,084,298

Change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts
5,879,117

 
 
$
65,951,770

 
$
6,487,952


9. Risk Factors

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.

10. Federal Tax Information

The tax character of distributions paid during the years ended March 31, 2019 and March 31, 2018 were as follows:
 
2019
2018
Distributions Paid From
 
 
Ordinary income
$
305,404,421

$
520,873,891

Long-term capital gains
$
526,738,424

$
863,231,843


The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
 
As of period end, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments
$
9,622,432,017

Gross tax appreciation of investments
$
1,839,961,116

Gross tax depreciation of investments
(179,000,138
)
Net tax appreciation (depreciation) of investments
1,660,960,978

Net tax appreciation (depreciation) on derivatives and translation of assets and liabilities in foreign currencies
517,799

Net tax appreciation (depreciation)
$
1,661,478,777

Undistributed ordinary income
$
27,155,898

Accumulated long-term gains
$
102,920,820


The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.


28

11. Recently Issued Accounting Standards

In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities” (ASU 2017-08). ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the impact that adopting ASU 2017-08 will have on the financial statements.


29

Financial Highlights
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
 
 
 
 
Per-Share Data
 
 
 
 
 
 
Ratios and Supplemental Data
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment
Income
(Loss)(1)
Net
Realized
and
Unrealized
Gain (Loss)
Total From
Investment
Operations
Net
Investment
Income
Net
Realized
Gains
Total
Distributions
Net Asset
Value,
End
of Period
Total
Return(2)
Operating
Expenses
Net
Investment
Income
(Loss)
Portfolio
Turnover
Rate
Net
Assets,
End of
Period
(in thousands)
Investor Class
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.60
0.18
0.56
0.74
(0.18)
(0.47)
(0.65)
$8.69
9.07%
0.91%
2.13%
80%

$6,081,355

2018
$9.13
0.17
0.37
0.54
(0.17)
(0.90)
(1.07)
$8.60
5.61%
0.91%
1.86%
75%

$6,496,269

2017
$8.41
0.17
1.24
1.41
(0.17)
(0.52)
(0.69)
$9.13
17.14%
0.91%
1.91%
93%

$7,327,473

2016
$8.71
0.21
0.32
0.53
(0.20)
(0.63)
(0.83)
$8.41
6.78%
0.94%
2.44%
88%

$5,399,702

2015
$8.84
0.21
0.54
0.75
(0.22)
(0.66)
(0.88)
$8.71
8.54%
0.93%
2.30%
56%

$5,463,566

I Class
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.61
0.20
0.56
0.76
(0.20)
(0.47)
(0.67)
$8.70
9.27%
0.71%
2.33%
80%

$2,826,256

2018
$9.14
0.19
0.37
0.56
(0.19)
(0.90)
(1.09)
$8.61
5.82%
0.71%
2.06%
75%

$2,621,898

2017
$8.42
0.19
1.24
1.43
(0.19)
(0.52)
(0.71)
$9.14
17.36%
0.71%
2.11%
93%

$1,515,758

2016
$8.71
0.22
0.34
0.56
(0.22)
(0.63)
(0.85)
$8.42
7.11%
0.74%
2.64%
88%

$1,229,940

2015
$8.85
0.22
0.54
0.76
(0.24)
(0.66)
(0.90)
$8.71
8.63%
0.73%
2.50%
56%

$1,318,193

Y Class
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.62
0.22
0.55
0.77
(0.21)
(0.47)
(0.68)
$8.71
9.43%
0.56%
2.48%
80%

$230,773

2018(3)
$9.16
0.20
0.36
0.56
(0.20)
(0.90)
(1.10)
$8.62
5.83%
0.56%(4)
2.25%(4)
75%(5)

$216,014



For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
 
 
 
 
Per-Share Data
 
 
 
 
 
 
Ratios and Supplemental Data
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment
Income
(Loss)(1)
Net
Realized
and
Unrealized
Gain (Loss)
Total From
Investment
Operations
Net
Investment
Income
Net
Realized
Gains
Total
Distributions
Net Asset
Value,
End
of Period
Total
Return(2)
Operating
Expenses
Net
Investment
Income
(Loss)
Portfolio
Turnover
Rate
Net
Assets,
End of
Period
(in thousands)
A Class
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.60
0.16
0.56
0.72
(0.16)
(0.47)
(0.63)
$8.69
8.80%
1.16%
1.88%
80%

$850,117

2018
$9.13
0.14
0.38
0.52
(0.15)
(0.90)
(1.05)
$8.60
5.36%
1.16%
1.61%
75%

$931,567

2017
$8.41
0.15
1.24
1.39
(0.15)
(0.52)
(0.67)
$9.13
16.85%
1.16%
1.66%
93%

$2,139,411

2016
$8.71
0.18
0.33
0.51
(0.18)
(0.63)
(0.81)
$8.41
6.51%
1.19%
2.19%
88%

$1,934,681

2015
$8.84
0.18
0.55
0.73
(0.20)
(0.66)
(0.86)
$8.71
8.27%
1.18%
2.05%
56%

$2,172,105

C Class
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.60
0.10
0.55
0.65
(0.09)
(0.47)
(0.56)
$8.69
8.00%
1.91%
1.13%
80%

$538,726

2018
$9.13
0.08
0.37
0.45
(0.08)
(0.90)
(0.98)
$8.60
4.58%
1.91%
0.86%
75%

$627,651

2017
$8.41
0.08
1.24
1.32
(0.08)
(0.52)
(0.60)
$9.13
15.97%
1.91%
0.91%
93%

$711,149

2016
$8.71
0.12
0.33
0.45
(0.12)
(0.63)
(0.75)
$8.41
5.72%
1.94%
1.44%
88%

$562,723

2015
$8.84
0.12
0.54
0.66
(0.13)
(0.66)
(0.79)
$8.71
7.47%
1.93%
1.30%
56%

$549,088

R Class
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.57
0.14
0.56
0.70
(0.14)
(0.47)
(0.61)
$8.66
8.57%
1.41%
1.63%
80%

$88,499

2018
$9.10
0.13
0.36
0.49
(0.12)
(0.90)
(1.02)
$8.57
5.11%
1.41%
1.36%
75%

$93,154

2017
$8.39
0.13
1.22
1.35
(0.12)
(0.52)
(0.64)
$9.10
16.48%
1.41%
1.41%
93%

$114,762

2016
$8.69
0.16
0.33
0.49
(0.16)
(0.63)
(0.79)
$8.39
6.27%
1.44%
1.94%
88%

$105,462

2015
$8.82
0.16
0.54
0.70
(0.17)
(0.66)
(0.83)
$8.69
8.03%
1.43%
1.80%
56%

$127,897

R5 Class
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.60
0.20
0.57
0.77
(0.20)
(0.47)
(0.67)
$8.70
9.41%
0.71%
2.33%
80%

$892

2018(3)
$9.15
0.21
0.33
0.54
(0.19)
(0.90)
(1.09)
$8.60
5.57%
0.71%(4)
2.51%(4)
75%(5)

$653



For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
 
 
 
 
Per-Share Data
 
 
 
 
 
 
Ratios and Supplemental Data
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment
Income
(Loss)(1)
Net
Realized
and
Unrealized
Gain (Loss)
Total From
Investment
Operations
Net
Investment
Income
Net
Realized
Gains
Total
Distributions
Net Asset
Value,
End
of Period
Total
Return(2)
Operating
Expenses
Net
Investment
Income
(Loss)
Portfolio
Turnover
Rate
Net
Assets,
End of
Period
(in thousands)
R6 Class
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.62
0.22
0.55
0.77
(0.21)
(0.47)
(0.68)
$8.71
9.43%
0.56%
2.48%
80%

$796,417

2018
$9.15
0.21
0.36
0.57
(0.20)
(0.90)
(1.10)
$8.62
5.97%
0.56%
2.21%
75%

$691,393

2017
$8.42
0.20
1.25
1.45
(0.20)
(0.52)
(0.72)
$9.15
17.66%
0.56%
2.26%
93%

$492,622

2016
$8.72
0.24
0.32
0.56
(0.23)
(0.63)
(0.86)
$8.42
7.14%
0.59%
2.79%
88%

$246,151

2015
$8.85
0.25
0.53
0.78
(0.25)
(0.66)
(0.91)
$8.72
8.90%
0.58%
2.65%
56%

$117,620

Notes to Financial Highlights
 
 
(1)
Computed using average shares outstanding throughout the period.
(2)
Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)
April 10, 2017 (commencement of sale) through March 31, 2018.
(4)
Annualized.
(5)
Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2018.

See Notes to Financial Statements.


Report of Independent Registered Public Accounting Firm

To the shareholders and the Board of Directors of American Century Capital Portfolios, Inc.:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Equity Income Fund, one of the portfolios constituting the American Century Capital Portfolios, Inc. (the “Fund”), as of March 31, 2019, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Equity Income Fund of the American Century Capital Portfolios, Inc. as of March 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP
Kansas City, Missouri
May 16, 2019

We have served as the auditor of one or more American Century investment companies since 1997.

33

Management

The Board of Directors

The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire by December 31 of the year in which they reach their 75th birthday.
Mr. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Director
Other Directorships Held During Past 5 Years
Independent Directors


Thomas W. Bunn (1953)
Director
Since 2017
Retired
67
SquareTwo Financial; Barings (formerly Babson Capital Funds Trust) (2013 to 2016)
Chris H. Cheesman
(1962)
Director
Since 2019
Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018)
67
None
Barry Fink
(1955)
Director
Since 2012 (independent since 2016)
Retired
67
None
Rajesh K. Gupta
(1960)
Director
Since 2019
Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to Present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019)
67
None


34

Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Director
Other Directorships Held During Past 5 Years
Independent Directors


Lynn Jenkins
(1963)
Director
Since 2019
United States Representative, U.S. House of Representatives (2009 to 2018)
67
MGP Ingredients, Inc.
Jan M. Lewis
(1957)
Director
Since 2011
Retired
67
None
John R. Whitten
(1946)
Director
Since 2008
Retired
67
Rudolph Technologies, Inc.
Stephen E. Yates
(1948)
Director and Chairman of the Board
Since 2012 (Chairman since 2018)
Retired
72
None
Interested Director


Jonathan S. Thomas
(1963)
Director and President
Since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
117
BioMed Valley Discoveries, Inc.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.

35

Officers

The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for 16 (in the case of Robert J. Leach, 15) investment companies in the American Century family of funds, unless otherwise noted. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Offices with the Funds
Principal Occupation(s) During the Past Five Years
Jonathan S. Thomas
(1963)
Director and President since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
R. Wes Campbell
(1974)
Chief Financial Officer and Treasurer since 2018
Investment Operations and Investment Accounting, ACS (2000 to present)
Amy D. Shelton
(1964)
Chief Compliance Officer and Vice President since 2014
Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present); Vice President, Client Interactions and Marketing, ACIS (2013 to 2014). Also serves as Vice President, ACIS
Charles A. Etherington
(1957)
General Counsel since 2007 and Senior Vice President since 2006
Attorney, ACC (1994 to present); Vice President, ACC (2005 to present); General Counsel, ACC (2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS
C. Jean Wade
(1964)
Vice President since 2012
Senior Vice President, ACS (2017 to present); Vice President, ACS (2000 to 2017)
Robert J. Leach
(1966)
Vice President since 2006
Vice President, ACS (2000 to present)
David H. Reinmiller
(1963)
Vice President since 2000
Attorney, ACC (1994 to present). Also serves as Vice President, ACIM and ACS
Ward D. Stauffer
(1960)
Secretary since 2005
Attorney, ACC (2003 to present)



36

Additional Information

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 the "About Us" page of American Century Investments’ website at americancentury.com and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.


Quarterly Portfolio Disclosure

The 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 on Form N-Q or as an exhibit to its reports on Form N-PORT. The fund’s Forms N-Q and Form N-PORT reports are available on the SEC’s website at sec.gov. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.

37

Other Tax Information

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund hereby designates up to the maximum amount allowable as qualified dividend income for the fiscal year ended March 31, 2019.

For corporate taxpayers, the fund hereby designates $218,389,820, or up to the maximum amount allowable, of ordinary income distributions paid during the fiscal year ended March 31, 2019 as qualified for the corporate dividends received deduction.
The fund hereby designates $66,771,022 as qualified short-term capital gain distributions for purposes of Internal Revenue Code Section 871 for the fiscal year ended March 31, 2019.

The fund hereby designates $538,403,020, or up to the maximum amount allowable, as long-term capital gain distributions (20% rate gain distributions) for the fiscal year ended March 31, 2019.

The fund utilized earnings and profits of $18,497,358 distributed to shareholders on redemption of shares as part of the dividends paid deduction (tax equalization).


38

Notes


39

Notes


40




acihorizblkd42.jpg
 
 
 
 
Contact Us
americancentury.com
 
Automated Information Line
1-800-345-8765
 
Investor Services Representative
1-800-345-2021
or 816-531-5575
 
Investors Using Advisors
1-800-378-9878
 
Business, Not-For-Profit, Employer-Sponsored Retirement Plans
1-800-345-3533
 
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies
1-800-345-6488
 
Telecommunications Relay Service for the Deaf
711
 
 
 
 
American Century Capital Portfolios, Inc.
 
 
 
 
Investment Advisor:
American Century Investment Management, Inc.
Kansas City, Missouri
 
 
 
 
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
 
 
 
 
©2019 American Century Proprietary Holdings, Inc. All rights reserved.
CL-ANN-92268 1905
 





acihorizblkd42.jpg
                  

 
 
 
Annual Report
 
 
 
March 31, 2019
 
 
 
Large Company Value Fund
 
Investor Class (ALVIX)
 
I Class (ALVSX)
 
A Class (ALPAX)
 
C Class (ALPCX)
 
R Class (ALVRX)
 
R5 Class (ALVGX)
 
R6 Class (ALVDX)










Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.

You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.





Table of Contents
President’s Letter
2
Performance
3
Portfolio Commentary
Fund Characteristics
Shareholder Fee Example
Schedule of Investments
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
Notes to Financial Statements
Financial Highlights
Report of Independent Registered Public Accounting Firm
Management
Additional Information





















Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.


President’s Letter

jthomasrev0514.jpg Jonathan Thomas

Dear Investor:

Thank you for reviewing this annual report for the period ended March 31, 2019. Annual reports help convey important information about fund returns, including market factors that affected performance during the reporting period. For additional, updated investment and market insights, we encourage you to visit our website, americancentury.com.

Markets Ended Roller-Coaster Period on Upswing

For the first half of the period, U.S. stocks climbed higher, while bond returns headed lower. Robust economic growth, bolstered by federal tax and regulatory reform, and record corporate earnings results fueled risk-on sentiment that drove stock prices higher. Meanwhile, the combination of strong economic data, the Federal Reserve’s (Fed’s) ongoing rate-hike campaign and an uptick in inflation pushed investment-grade bond returns lower.

Market trends began changing in late 2018. Mounting investor concerns about slowing global economic and earnings growth, U.S.-China trade tensions and rising interest rates triggered widespread volatility. Stock prices plunged as investors sought safe-haven investments, including U.S. Treasuries. Furthermore, the Fed issued another rate hike in December, its fourth of the year, and maintained its hawkish outlook. Investors feared the December rate increase and the Fed’s plans for two more rate hikes in 2019 were too aggressive, and risk-off investing remained in favor.

January brought a renewed sense of stability to the markets. Investors’ concerns about growth and trade eased, and the Fed changed course, pausing its rate-hike campaign amid moderating global growth and inflation. Valuations appeared attractive after the late-2018 sell-off, and risk-on investing resumed. In March, the Fed held rates steady again, hinting additional tightening was off the table for 2019. This news drove stock and bond returns higher and left both asset classes on an upward track to end the period. Overall, stocks (S&P 500 Index) overcame their late-2018 nosedive to gain 9.50% for the period. Bonds (Bloomberg Barclays U.S. Aggregate Bond Index) bounced back from losses early in the period to return 4.48%.

We expect volatility to remain a formidable factor as investors react to global growth trends, central bank policy and geopolitical developments. We believe this scenario underscores the importance of using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.

Sincerely,
image48a01.jpg
Jonathan Thomas
President and Chief Executive Officer
American Century Investments


2

Performance
Total Returns as of March 31, 2019
 
 
 
Average Annual Returns
 
 
Ticker
Symbol
1 year
5 years
10 years
Since
Inception
Inception
Date
Investor Class
ALVIX
6.20%
6.94%
13.25%
—
7/30/99
Russell 1000 Value Index
—
5.67%
7.72%
14.51%
—
—
S&P 500 Index
—
9.50%
10.90%
15.91%
—
—
I Class
ALVSX
6.41%
7.15%
13.49%
—
8/10/01
A Class
ALPAX
 
 
 

10/26/00
No sales charge
 
5.94%
6.68%
12.97%
—
 
With sales charge
 
-0.15%
5.41%
12.31%
—
 
C Class
ALPCX
5.15%
5.89%
12.13%
—
11/7/01
R Class
ALVRX
5.67%
6.43%
12.69%
—
8/29/03
R5 Class
ALVGX
6.40%
—
—
5.29%
4/10/17
R6 Class
ALVDX
6.57%
7.31%
—
8.19%
7/26/13
Average annual returns since inception are presented when ten years of performance history is not available.

Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.




















Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

3

Growth of $10,000 Over 10 Years
$10,000 investment made March 31, 2009
Performance for other share classes will vary due to differences in fee structure.
chart-21c43ca5925c546fa3c.jpg
Value on March 31, 2019
 
Investor Class — $34,724
 
 
Russell 1000 Value Index — $38,803
 
 
S&P 500 Index — $43,809
 

Total Annual Fund Operating Expenses
Investor Class
I Class
A Class
C Class
R Class
R5 Class
R6 Class
0.84%
0.64%
1.09%
1.84%
1.34%
0.64%
0.49%
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.












Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

4

Portfolio Commentary
 

Portfolio Managers: Brian Woglom and Phil Davidson

Effective April 2019, portfolio manager Phil Sundell will join the fund's management team.

Performance Summary

Large Company Value returned 6.20%* for the 12-month period ended March 31, 2019. The fund’s benchmark, the Russell 1000 Value Index, returned 5.67%. The fund’s return reflects operating expenses, while the index’s return does not.

The fund’s holdings in the consumer staples, health care and consumer discretionary sectors were among the key drivers of relative performance. The fund’s overweight to the health care sector was also beneficial. On the other hand, stock selection in energy, underweights to the real estate and utilities sectors and holdings in the materials and financials sectors detracted from relative results.

Consumer Staples, Health Care and Consumer Discretionary Contributed

Holdings in the consumer staples sector positively impacted relative performance, including Procter & Gamble. This large consumer packaged goods company posted its highest organic growth rate in nearly five years, benefiting from recent investments in product enhancements and product pricing. Importantly, Procter & Gamble is stabilizing and improving market share in many key products.

Our portfolio’s overweight in health care aided performance. Additionally, several of our health care holdings outperformed during the trailing 12-month period, including pharmaceutical companies Merck & Co. and Pfizer. Merck outperformed after it reported solid financial results, raised its dividend and announced a share buyback. Also, competitor AstraZeneca announced a lung cancer trial failure, which cemented Merck’s dominance in the lung cancer space with its drug, Keytruda. Pfizer’s stock was supported by solid data on Tafamidis, its cardiomyopathy drug, and by its generally strong drug pipeline.

Consumer discretionary holding Advance Auto Parts was another top individual contributor. This retailer of aftermarket replacement parts is a market share leader in a higher-quality industry. Extreme winter storms in the Northeastern U.S. helped drive better-than-expected results for the company. Advance Auto Parts also raised its full-year guidance due to margin improvement and stronger-than-expected same-store sales trends. This indicated to investors that the company’s turnaround plan is starting to show signs of effectiveness.

While overall stock selection in the energy sector weighed on performance, Occidental Petroleum was a notable contributor. The stock of this large integrated energy company appreciated meaningfully as its management team executed on its plans to restore profitability to Occidental’s upstream business. We exited the position on strength in the stock price.

Energy, Real Estate, Materials and Utilities Detracted

A few of our energy holdings were key detractors from relative performance, including Schlumberger. The recovery in the oil field services markets has perpetually disappointed investors. In particular, the non-U.S. oil field services markets, a historic stronghold for




*All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the fund's benchmark, other share classes may not. See page 3 for returns for all share classes.

5

Schlumberger, have failed to stage a meaningful recovery. As a result, industry participants have been bidding contracts aggressively in an attempt to maintain operations, which has weighed on the revenue growth and profitability of Schlumberger and its peers. We still think Schlumberger is the best oil field services company, and we continue to hold the stock as of period-end. Noble Energy was another detractor. Its stock fell significantly during the second half of 2018 as lower commodity prices weighed on the free cash flow and return on invested capital potential of the business.

Our underweights to the real estate and utilities sectors also negatively impacted relative results. These underweights were the result of our bottom-up investment approach; our metrics indicated that many stocks in these sectors remained overvalued throughout the trailing 12-month period. Despite these generally inflated valuations, investors favored the more defensive utilities sector as the market declined in the fourth quarter of 2018. Furthermore, a decline in interest rates in the first quarter of 2019 helped propel stocks in the real estate sector.

Within the materials sector, our position in WestRock, a paper and packaging company, weighed on the fund’s performance. The stock underperformed due to worries that containerboard pricing and demand have peaked. Also, the company’s decision to acquire a smaller competitor raised concerns about the company’s debt load.

Furthermore, asset manager Invesco was a top detractor from performance. Invesco underperformed due to weaker equity markets in 2018, an acceleration of net outflows and on news of its expensive acquisition of OppenheimerFunds.

Portfolio Positioning

The portfolio seeks to invest in companies where we believe the valuation does not reflect the quality and normal earnings power of the company. Our process is based on individual security selection, but broad themes have emerged.

As of March 31, 2019, our portfolio is overweight to the health care and consumer staples sectors. According to our analysis, the portfolio’s health care holdings offer compelling valuations and
risk/reward profiles, particularly in the pharmaceuticals and health care equipment and supplies industries. The consumer staples sector is comprised of companies with diverging strategies and fundamental outlooks. We believe we have identified some of the more diversified, stronger companies with better balance sheets to help navigate a tougher competitive environment.

Conversely, the portfolio is underweight in communication services and real estate. As of
period-end, our only position in the communication services sector is Verizon Communications. We believe Verizon offers relative stability and balance sheet strength. Our analysis shows that many other communication services stocks have volatile business models and higher levels of leverage. Additionally, because it has been difficult for us to find higher-quality real estate stocks selling at attractive valuations, Weyerhaeuser is our only real estate holding as of the end of the reporting period.





6

Fund Characteristics
MARCH 31, 2019
Top Ten Holdings
% of net assets
Johnson & Johnson
3.7%
JPMorgan Chase & Co.
3.6%
Medtronic plc
3.3%
U.S. Bancorp
3.2%
Verizon Communications, Inc.
3.1%
TOTAL SA ADR
3.0%
Chevron Corp.
2.8%
iShares Russell 1000 Value ETF
2.8%
Intel Corp.
2.7%
Pfizer, Inc.
2.6%
 
 
Top Five Industries
% of net assets
Banks
13.9%
Pharmaceuticals
8.6%
Oil, Gas and Consumable Fuels
8.2%
Health Care Equipment and Supplies
6.5%
Capital Markets
4.8%
 
 
Types of Investments in Portfolio
% of net assets
Domestic Common Stocks
86.5%
Foreign Common Stocks*
7.8%
Exchange-Traded Funds
2.8%
Total Equity Exposure
97.1%
Temporary Cash Investments
2.6%
Other Assets and Liabilities
0.3%
*Includes depositary shares, dual listed securities and foreign ordinary shares.









7

Shareholder Fee Example

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.

The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from October 1, 2018 to March 31, 2019.

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 a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.

Hypothetical Example for Comparison Purposes

The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


8

 
Beginning
Account Value
10/1/18
Ending
Account Value
3/31/19
Expenses Paid
During Period(1)
10/1/18 - 3/31/19
 
Annualized
Expense Ratio(1)
Actual
 
 
 
 
Investor Class
$1,000
$987.20
$4.11
0.83%
I Class
$1,000
$988.30
$3.12
0.63%
A Class
$1,000
$986.00
$5.35
1.08%
C Class
$1,000
$982.40
$9.04
1.83%
R Class
$1,000
$984.80
$6.58
1.33%
R5 Class
$1,000
$988.30
$3.12
0.63%
R6 Class
$1,000
$989.00
$2.38
0.48%
Hypothetical
 
 
 
 
Investor Class
$1,000
$1,020.79
$4.18
0.83%
I Class
$1,000
$1,021.79
$3.18
0.63%
A Class
$1,000
$1,019.55
$5.44
1.08%
C Class
$1,000
$1,015.81
$9.20
1.83%
R Class
$1,000
$1,018.30
$6.69
1.33%
R5 Class
$1,000
$1,021.79
$3.18
0.63%
R6 Class
$1,000
$1,022.54
$2.42
0.48%
(1)
Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.

9

Schedule of Investments
 
MARCH 31, 2019
 
Shares
Value
COMMON STOCKS — 94.3%
 
 
Air Freight and Logistics — 1.0%
 
 
United Parcel Service, Inc., Class B
78,700

$
8,793,938

Airlines — 1.2%
 
 
Southwest Airlines Co.
198,200

10,288,562

Auto Components — 0.7%
 
 
BorgWarner, Inc.
170,900

6,564,269

Automobiles — 1.0%
 
 
Honda Motor Co. Ltd. ADR
313,700

8,523,229

Banks — 13.9%
 
 
Bank of America Corp.
372,100

10,266,239

BB&T Corp.
469,300

21,836,529

JPMorgan Chase & Co.
310,900

31,472,407

PNC Financial Services Group, Inc. (The)
169,000

20,729,540

U.S. Bancorp
579,300

27,916,467

Wells Fargo & Co.
219,100

10,586,912

 
 
122,808,094

Beverages — 1.3%
 
 
PepsiCo, Inc.
95,800

11,740,290

Building Products — 1.3%
 
 
Johnson Controls International plc
317,300

11,721,062

Capital Markets — 4.8%
 
 
Ameriprise Financial, Inc.
102,300

13,104,630

Bank of New York Mellon Corp. (The)
367,500

18,533,025

Invesco Ltd.
561,900

10,850,289

 
 
42,487,944

Chemicals — 0.8%
 
 
Dow, Inc.(1)(2) 
8,001

413,075

DowDuPont, Inc.
188,100

6,784,767

 
 
7,197,842

Communications Equipment — 1.5%
 
 
Cisco Systems, Inc.
244,500

13,200,555

Containers and Packaging — 0.7%
 
 
WestRock Co.
167,100

6,408,285

Diversified Telecommunication Services — 3.1%
 
 
Verizon Communications, Inc.
463,200

27,389,016

Electric Utilities — 3.9%
 
 
Eversource Energy
163,000

11,564,850

Pinnacle West Capital Corp.
96,900

9,261,702

Xcel Energy, Inc.
250,900

14,103,089

 
 
34,929,641

Electrical Equipment — 1.9%
 
 
Eaton Corp. plc
114,100

9,191,896


10

 
Shares
Value
Emerson Electric Co.
115,900

$
7,935,673

 
 
17,127,569

Electronic Equipment, Instruments and Components — 1.3%
 
 
TE Connectivity Ltd.
141,000

11,385,750

Energy Equipment and Services — 2.9%
 
 
Baker Hughes a GE Co.
316,500

8,773,380

Schlumberger Ltd.
396,800

17,288,576

 
 
26,061,956

Equity Real Estate Investment Trusts (REITs) — 1.4%
 
 
Weyerhaeuser Co.
484,800

12,769,632

Food and Staples Retailing — 1.5%
 
 
Sysco Corp.
101,300

6,762,788

Walmart, Inc.
62,500

6,095,625

 
 
12,858,413

Food Products — 3.2%
 
 
Conagra Brands, Inc.
240,300

6,665,922

Kellogg Co.
70,900

4,068,242

Mondelez International, Inc., Class A
359,900

17,966,208

 
 
28,700,372

Health Care Equipment and Supplies — 6.5%
 
 
Hologic, Inc.(2) 
151,400

7,327,760

Medtronic plc
323,800

29,491,704

Zimmer Biomet Holdings, Inc.
163,800

20,917,260

 
 
57,736,724

Health Care Providers and Services — 2.2%
 
 
McKesson Corp.
64,500

7,550,370

Quest Diagnostics, Inc.
132,300

11,896,416

 
 
19,446,786

Health Care Technology — 1.1%
 
 
Cerner Corp.(2) 
170,800

9,771,468

Hotels, Restaurants and Leisure — 0.6%
 
 
Carnival Corp.
104,400

5,295,168

Household Durables — 0.5%
 
 
PulteGroup, Inc.
160,800

4,495,968

Household Products — 3.7%
 
 
Colgate-Palmolive Co.
140,800

9,650,432

Procter & Gamble Co. (The)
217,500

22,630,875

 
 
32,281,307

Industrial Conglomerates — 1.1%
 
 
Siemens AG
89,900

9,675,103

Insurance — 3.5%
 
 
Aflac, Inc.
185,100

9,255,000

Chubb Ltd.
155,400

21,768,432

 
 
31,023,432

Machinery — 2.7%
 
 
Atlas Copco AB, B Shares
498,900

12,347,336


11

 
Shares
Value
Cummins, Inc.
70,800

$
11,177,196

 
 
23,524,532

Multiline Retail — 0.5%
 
 
Target Corp.
56,100

4,502,586

Oil, Gas and Consumable Fuels — 8.2%
 
 
Anadarko Petroleum Corp.
114,900

5,225,652

Chevron Corp.
200,500

24,697,590

EQT Corp.
166,000

3,442,840

Equitrans Midstream Corp.(2) 
132,800

2,892,384

Noble Energy, Inc.
172,600

4,268,398

Royal Dutch Shell plc, Class B ADR
88,900

5,685,155

TOTAL SA ADR
472,000

26,266,800

 
 
72,478,819

Personal Products — 0.7%
 
 
Unilever NV CVA
102,000

5,924,592

Pharmaceuticals — 8.6%
 
 
Allergan plc
46,500

6,808,065

Johnson & Johnson
233,700

32,668,923

Merck & Co., Inc.
159,200

13,240,664

Pfizer, Inc.
541,600

23,001,752

 
 
75,719,404

Road and Rail — 0.5%
 
 
Union Pacific Corp.
27,900

4,664,880

Semiconductors and Semiconductor Equipment — 3.7%
 
 
Applied Materials, Inc.
217,100

8,610,186

Intel Corp.
443,200

23,799,840

 
 
32,410,026

Software — 1.5%
 
 
Oracle Corp. (New York)
243,700

13,089,127

Specialty Retail — 0.9%
 
 
Advance Auto Parts, Inc.
47,300

8,066,069

Technology Hardware, Storage and Peripherals — 0.4%
 
 
Apple, Inc.
20,600

3,912,970

TOTAL COMMON STOCKS
(Cost $734,967,125)
 
834,975,380

EXCHANGE-TRADED FUNDS — 2.8%
 
 
iShares Russell 1000 Value ETF
(Cost $23,797,838)
199,400

24,623,906

TEMPORARY CASH INVESTMENTS — 2.6%
 
 
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.125% - 2.875%, 9/30/19 - 2/15/44, valued at $20,165,513), in a joint trading account at 2.35%, dated 3/29/19, due 4/1/19 (Delivery value $19,766,546)
 
19,762,676

Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.875%, 10/31/23, valued at $3,372,140), at 1.25%, dated 3/29/19, due 4/1/19 (Delivery value $3,303,344)
 
3,303,000


12

 
Shares
Value
State Street Institutional U.S. Government Money Market Fund, Premier Class
10,771

$
10,771

TOTAL TEMPORARY CASH INVESTMENTS
(Cost $23,076,447)
 
23,076,447

TOTAL INVESTMENT SECURITIES — 99.7%
(Cost $781,841,410)
 
882,675,733

OTHER ASSETS AND LIABILITIES — 0.3%
 
2,779,938

TOTAL NET ASSETS — 100.0%
 
$
885,455,671


FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Currency Purchased
Currency Sold
Counterparty
Settlement Date
Unrealized Appreciation
(Depreciation)
EUR
745,492

USD
847,802

Credit Suisse AG
6/28/19
$
(5,386
)
USD
36,110,260

EUR
31,650,124

Credit Suisse AG
6/28/19
345,200

USD
4,862,539

GBP
3,668,321

JPMorgan Chase Bank N.A.
6/28/19
64,024

JPY
22,652,609

USD
206,533

Bank of America N.A.
6/28/19
(749
)
USD
7,701,244

JPY
841,757,539

Bank of America N.A.
6/28/19
54,427

SEK
2,732,868

USD
296,195

Goldman Sachs & Co.
6/28/19
(330
)
USD
10,230,545

SEK
93,812,052

Goldman Sachs & Co.
6/28/19
74,300

 
 
 
 
 
 
$
531,486


NOTES TO SCHEDULE OF INVESTMENTS
ADR
-
American Depositary Receipt
CVA
-
Certificaten Van Aandelen
EUR
-
Euro
GBP
-
British Pound
JPY
-
Japanese Yen
SEK
-
Swedish Krona
USD
-
United States Dollar
(1)
When-issued security. The issue price and yield are fixed on the date of the commitment, but payment and delivery are scheduled for a future date.
(2)
Non-income producing.


See Notes to Financial Statements.


13

Statement of Assets and Liabilities
MARCH 31, 2019
 
Assets
 
Investment securities, at value (cost of $781,841,410)
$
882,675,733

Receivable for investments sold
5,941,973

Receivable for capital shares sold
307,601

Unrealized appreciation on forward foreign currency exchange contracts
537,951

Dividends and interest receivable
1,589,431

 
891,052,689

 
 
Liabilities
 
Payable for investments purchased
4,767,195

Payable for capital shares redeemed
240,950

Unrealized depreciation on forward foreign currency exchange contracts
6,465

Accrued management fees
570,731

Distribution and service fees payable
11,677

 
5,597,018

 
 
Net Assets
$
885,455,671

 
 
Net Assets Consist of:
 
Capital (par value and paid-in surplus)
$
805,573,125

Distributable earnings
79,882,546

 
$
885,455,671


 
Net Assets
Shares Outstanding
Net Asset Value
Per Share
Investor Class, $0.01 Par Value

$673,364,977

68,343,963

$9.85
I Class, $0.01 Par Value

$18,195,641

1,845,785

$9.86
A Class, $0.01 Par Value

$34,602,836

3,513,884

$9.85*
C Class, $0.01 Par Value

$3,363,485

341,627

$9.85
R Class, $0.01 Par Value

$3,388,740

343,773

$9.86
R5 Class, $0.01 Par Value

$5,534

561

$9.86
R6 Class, $0.01 Par Value

$152,534,458

15,476,043

$9.86
*Maximum offering price $10.45 (net asset value divided by 0.9425).


See Notes to Financial Statements.

14

Statement of Operations
YEAR ENDED MARCH 31, 2019
 
Investment Income (Loss)
 
Income:
 
Dividends (net of foreign taxes withheld of $272,463)
$
21,928,871

Interest
318,793

 
22,247,664

 
 
Expenses:
 
Management fees
6,406,176

Distribution and service fees:
 
A Class
95,724

C Class
41,917

R Class
19,628

Directors' fees and expenses
22,984

Other expenses
17,756

 
6,604,185

 
 
Net investment income (loss)
15,643,479

 
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) on:
 
Investment transactions
14,900,615

Forward foreign currency exchange contract transactions
5,787,544

Foreign currency translation transactions
(14,475
)
 
20,673,684

 
 
Change in net unrealized appreciation (depreciation) on:
 
Investments
15,823,396

Forward foreign currency exchange contracts
505,567

Translation of assets and liabilities in foreign currencies
(2,876
)
 
16,326,087

 
 
Net realized and unrealized gain (loss)
36,999,771

 
 
Net Increase (Decrease) in Net Assets Resulting from Operations
$
52,643,250



See Notes to Financial Statements.



15

Statement of Changes in Net Assets
YEARS ENDED MARCH 31, 2019 AND MARCH 31, 2018
Increase (Decrease) in Net Assets
March 31, 2019
March 31, 2018
Operations
 
 
Net investment income (loss)
$
15,643,479

$
18,340,782

Net realized gain (loss)
20,673,684

23,064,070

Change in net unrealized appreciation (depreciation)
16,326,087

(9,255,174
)
Net increase (decrease) in net assets resulting from operations
52,643,250

32,149,678

 
 
 
Distributions to Shareholders
 
 
From earnings:(1)
 
 
Investor Class
(37,495,148
)
(35,690,399
)
I Class
(1,124,543
)
(1,201,355
)
A Class
(2,062,133
)
(2,346,564
)
C Class
(162,466
)
(292,840
)
R Class
(185,656
)
(261,741
)
R5 Class
(321
)
(302
)
R6 Class
(8,415,889
)
(7,427,977
)
Decrease in net assets from distributions
(49,446,156
)
(47,221,178
)
 
 
 
Capital Share Transactions
 
 
Net increase (decrease) in net assets from capital share transactions (Note 5)
67,697,947

(73,728,534
)
 
 
 
Net increase (decrease) in net assets
70,895,041

(88,800,034
)
 
 
 
Net Assets
 
 
Beginning of period
814,560,630

903,360,664

End of period
$
885,455,671

$
814,560,630


(1)
Prior period presentation has been updated to reflect the current period combination of distributions to shareholders from net investment income and net realized gains. Distributions from net investment income were $(12,587,826), $(421,278), $(754,663), $(59,283), $(71,995), $(111) and $(2,988,543) for Investor Class, I Class, A Class, C Class, R Class, R5 Class and R6 Class, respectively. Distributions from net realized gains were $(23,102,573), $(780,077), $(1,591,901), $(233,557), $(189,746), $(191), and $(4,439,434) for Investor Class, I Class, A Class, C Class, R Class, R5 Class and R6 Class, respectively.


See Notes to Financial Statements.





16

Notes to Financial Statements

MARCH 31, 2019

1. Organization

American Century Capital Portfolios, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Large Company 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. Income is a secondary objective.

The fund offers the Investor Class, I 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. Sale of the R5 Class commenced on April 10, 2017.

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 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 net asset value per share. Repurchase agreements are valued at cost, which approximates fair value. Forward foreign currency exchange contracts are valued at the mean of the appropriate forward exchange rate at the close of the NYSE as provided by an independent pricing service.
 
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
 
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value 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

17

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. If significant fluctuations in foreign markets are identified, 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.
 
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, if any, are generally declared and paid quarterly. Distributions from net realized gains, if any, are generally declared and paid annually.
 

18

Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.

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, 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) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. 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 Large Company Value 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 March 31, 2019 are as follows:
 
Management Fee
 Schedule Range
Effective Annual
Management Fee
Investor Class
0.70% to 0.90%
0.83%
I Class
0.50% to 0.70%
0.63%
A Class
0.70% to 0.90%
0.83%
C Class
0.70% to 0.90%
0.83%
R Class
0.70% to 0.90%
0.83%
R5 Class
0.50% to 0.70%
0.63%
R6 Class
0.35% to 0.55%
0.48%

Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended March 31, 2019 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,

19

the interfund purchases and sales were $51,488,264 and $7,588,429, respectively. The effect of interfund transactions on the Statement of Operations was $49,926 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 March 31, 2019 were $535,297,500 and $504,436,571, respectively.

5. Capital Share Transactions

Transactions in shares of the fund were as follows:
 
Year ended
March 31, 2019
Year ended
March 31, 2018(1)
 
Shares
Amount
Shares
Amount
Investor Class/Shares Authorized
500,000,000

 
490,000,000

 
Sold
8,388,545

$
82,722,800

6,103,145

$
61,859,119

Issued in reinvestment of distributions
3,923,361

37,145,768

3,467,863

35,365,778

Redeemed
(7,088,755
)
(71,026,977
)
(11,912,905
)
(121,531,300
)
 
5,223,151

48,841,591

(2,341,897
)
(24,306,403
)
I Class/Shares Authorized
45,000,000

 
50,000,000

 
Sold
526,258

5,325,158

1,087,344

11,005,106

Issued in reinvestment of distributions
100,636

956,630

103,493

1,056,279

Redeemed
(831,642
)
(8,420,060
)
(3,291,386
)
(33,238,442
)
 
(204,748
)
(2,138,272
)
(2,100,549
)
(21,177,057
)
A Class/Shares Authorized
45,000,000

 
50,000,000

 
Sold
501,785

5,098,258

555,637

5,621,916

Issued in reinvestment of distributions
199,627

1,888,582

210,315

2,144,020

Redeemed
(1,268,941
)
(12,547,830
)
(2,280,536
)
(23,192,893
)
 
(567,529
)
(5,560,990
)
(1,514,584
)
(15,426,957
)
C Class/Shares Authorized
15,000,000

 
15,000,000

 
Sold
109,929

1,023,092

77,488

793,302

Issued in reinvestment of distributions
13,181

124,273

23,435

238,769

Redeemed
(395,879
)
(4,024,495
)
(377,094
)
(3,792,393
)
 
(272,769
)
(2,877,130
)
(276,171
)
(2,760,322
)
R Class/Shares Authorized
10,000,000

 
10,000,000

 
Sold
85,077

844,848

92,370

939,476

Issued in reinvestment of distributions
17,752

168,221

24,340

248,316

Redeemed
(194,424
)
(1,933,049
)
(258,680
)
(2,656,868
)
 
(91,595
)
(919,980
)
(141,970
)
(1,469,076
)
R5 Class/Shares Authorized
30,000,000

 
50,000,000

 
Sold
—

—

498

5,000

Issued in reinvestment of distributions
33

321

30

302

 
33

321

528

5,302

R6 Class/Shares Authorized
95,000,000

 
85,000,000

 
Sold
4,564,464

45,052,955

5,952,240

60,232,389

Issued in reinvestment of distributions
886,317

8,415,354

728,213

7,427,977

Redeemed
(2,346,697
)
(23,115,902
)
(7,495,218
)
(76,254,387
)
 
3,104,084

30,352,407

(814,765
)
(8,594,021
)
Net increase (decrease)
7,190,627

$
67,697,947

(7,189,408
)
$
(73,728,534
)

(1)
April 10, 2017 (commencement of sale) through March 31, 2018 for the R5 Class.


20

6. Fair Value Measurements

The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.

•
Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.

•
Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.

•
Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).

The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
 
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
 
Level 1
Level 2
Level 3
Assets
 
 
 
Investment Securities
 
 
 
Common Stocks
$
807,028,349

$
27,947,031

—

Exchange-Traded Funds
24,623,906

—

—

Temporary Cash Investments
10,771

23,065,676

—

 
$
831,663,026

$
51,012,707

—

Other Financial Instruments
 
 
 
Forward Foreign Currency Exchange Contracts
—

$
537,951

—

      
 
 
 
Liabilities
 
 
 
Other Financial Instruments
 
 
 
Forward Foreign Currency Exchange Contracts
—

$
6,465

—


7. Derivative Instruments

Foreign Currency Risk — The fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The value of foreign investments held by a fund may be significantly affected by changes in foreign currency exchange rates. The dollar value of a foreign security generally decreases when the value of the dollar rises against the foreign currency in which the security is denominated and tends to increase when the value of the dollar declines against such foreign currency. A fund may enter into forward foreign currency exchange contracts to reduce a fund's exposure to foreign currency exchange rate fluctuations. The net U.S. dollar value of foreign currency underlying all contractual commitments held by a fund and the resulting unrealized appreciation or depreciation are determined daily. Realized gain or loss is recorded upon the termination of the contract. Net realized and unrealized gains or losses occurring during the holding period of forward foreign currency exchange contracts are a component of net realized gain (loss) on forward foreign currency exchange contract transactions and change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts, respectively. A fund bears the risk of an unfavorable change in the foreign currency exchange rate underlying the forward contract. Additionally, losses, up to the fair value, may arise if the counterparties do not perform under the contract terms. The fund's average U.S. dollar exposure to foreign currency risk derivative instruments held during the period was $65,983,641.
 
The value of foreign currency risk derivative instruments as of March 31, 2019, is disclosed on the Statement of Assets and Liabilities as an asset of $537,951 in unrealized appreciation on forward foreign currency

21

exchange contracts and a liability of $6,465 in unrealized depreciation on forward foreign currency exchange contracts. For the year ended March 31, 2019, the effect of foreign currency risk derivative instruments on the Statement of Operations was $5,787,544 in net realized gain (loss) on forward foreign currency exchange contract transactions and $505,567 in change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts.
 
8. Risk Factors

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.

9. Federal Tax Information

The tax character of distributions paid during the years ended March 31, 2019 and March 31, 2018 were as follows:
 
2019
2018
Distributions Paid From
 
 
Ordinary income
$
15,696,058

$
24,148,118

Long-term capital gains
$
33,750,098

$
23,073,060


The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
 
As of period end, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments
$
797,505,298

Gross tax appreciation of investments
$
114,142,312

Gross tax depreciation of investments
(28,971,877
)
Net tax appreciation (depreciation) of investments
85,170,435

Net tax appreciation (depreciation) on derivatives and translation of assets and liabilities in foreign currencies
(3,234
)
Net tax appreciation (depreciation)
$
85,167,201

Undistributed ordinary income
$
1,034,083

Post-October capital loss deferral
$
(6,318,738
)

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
 
Loss deferrals 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.


22

Financial Highlights
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
Per-Share Data
Ratios and Supplemental Data
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment
Income
(Loss)(1)
Net
Realized
and
Unrealized
Gain (Loss)
Total From
Investment
Operations
Net
Investment
Income
Net
Realized
Gains
Total
Distributions
Net Asset
Value,
End
of Period
Total
Return(2)
Operating
Expenses
Net
Investment
Income
(Loss)
Portfolio
Turnover
Rate
Net
Assets,
End of
Period
(in thousands)
Investor Class
 
 
 
 
 
 
 
 
 
 
 
2019
$9.85
0.18
0.40
0.58
(0.18)
(0.40)
(0.58)
$9.85
6.20%
0.83%
1.83%
62%

$673,365

2018
$10.05
0.21
0.17
0.38
(0.20)
(0.38)
(0.58)
$9.85
3.65%
0.83%
2.09%
53%

$621,874

2017
$8.58
0.18
1.48
1.66
(0.19)
—
(0.19)
$10.05
19.44%
0.83%
1.96%
68%

$658,031

2016
$9.07
0.12
(0.49)
(0.37)
(0.12)
—
(0.12)
$8.58
(4.06)%
0.84%
1.41%
56%

$642,746

2015
$8.28
0.12
0.78
0.90
(0.11)
—
(0.11)
$9.07
10.92%
0.84%
1.36%
56%

$588,608

I Class
 
 
 
 
 
 
 
 
 
 
 
2019
$9.86
0.20
0.40
0.60
(0.20)
(0.40)
(0.60)
$9.86
6.41%
0.63%
2.03%
62%

$18,196

2018
$10.06
0.22
0.18
0.40
(0.22)
(0.38)
(0.60)
$9.86
3.85%
0.63%
2.29%
53%

$20,213

2017
$8.58
0.19
1.49
1.68
(0.20)
—
(0.20)
$10.06
19.80%
0.63%
2.16%
68%

$41,746

2016
$9.08
0.14
(0.50)
(0.36)
(0.14)
—
(0.14)
$8.58
(3.97)%
0.64%
1.61%
56%

$48,495

2015
$8.29
0.13
0.79
0.92
(0.13)
—
(0.13)
$9.08
11.14%
0.64%
1.56%
56%

$47,616

A Class
 
 
 
 
 
 
 
 
 
 
 
2019
$9.85
0.16
0.40
0.56
(0.16)
(0.40)
(0.56)
$9.85
5.94%
1.08%
1.58%
62%

$34,603

2018
$10.05
0.18
0.17
0.35
(0.17)
(0.38)
(0.55)
$9.85
3.39%
1.08%
1.84%
53%

$40,192

2017
$8.57
0.16
1.48
1.64
(0.16)
—
(0.16)
$10.05
19.28%
1.08%
1.71%
68%

$56,222

2016
$9.07
0.10
(0.50)
(0.40)
(0.10)
—
(0.10)
$8.57
(4.41)%
1.09%
1.16%
56%

$61,663

2015
$8.28
0.10
0.78
0.88
(0.09)
—
(0.09)
$9.07
10.65%
1.09%
1.11%
56%

$70,462



For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
Per-Share Data
Ratios and Supplemental Data
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment
Income
(Loss)(1)
Net
Realized
and
Unrealized
Gain (Loss)
Total From
Investment
Operations
Net
Investment
Income
Net
Realized
Gains
Total
Distributions
Net Asset
Value,
End
of Period
Total
Return(2)
Operating
Expenses
Net
Investment
Income
(Loss)
Portfolio
Turnover
Rate
Net
Assets,
End of
Period
(in thousands)
C Class
 
 
 
 
 
 
 
 
 
 
 
2019
$9.85
0.08
0.40
0.48
(0.08)
(0.40)
(0.48)
$9.85
5.15%
1.83%
0.83%
62%

$3,363

2018
$10.05
0.11
0.17
0.28
(0.10)
(0.38)
(0.48)
$9.85
2.63%
1.83%
1.09%
53%

$6,050

2017
$8.57
0.09
1.48
1.57
(0.09)
—
(0.09)
$10.05
18.36%
1.83%
0.96%
68%

$8,948

2016
$9.06
0.03
(0.49)
(0.46)
(0.03)
—
(0.03)
$8.57
(5.03)%
1.84%
0.41%
56%

$9,116

2015
$8.28
0.03
0.78
0.81
(0.03)
—
(0.03)
$9.06
9.77%
1.84%
0.36%
56%

$11,505

R Class
 
 
 
 
 
 
 
 
 
 
 
2019
$9.86
0.13
0.40
0.53
(0.13)
(0.40)
(0.53)
$9.86
5.67%
1.33%
1.33%
62%

$3,389

2018
$10.06
0.16
0.17
0.33
(0.15)
(0.38)
(0.53)
$9.86
3.13%
1.33%
1.59%
53%

$4,291

2017
$8.58
0.14
1.48
1.62
(0.14)
—
(0.14)
$10.06
18.95%
1.33%
1.46%
68%

$5,806

2016
$9.07
0.08
(0.49)
(0.41)
(0.08)
—
(0.08)
$8.58
(4.55)%
1.34%
0.91%
56%

$4,820

2015
$8.28
0.07
0.79
0.86
(0.07)
—
(0.07)
$9.07
10.37%
1.34%
0.86%
56%

$5,842

R5 Class
 
 
 
 
 
 
 
 
 
 
 
2019
$9.86
0.20
0.40
0.60
(0.20)
(0.40)
(0.60)
$9.86
6.40%
0.63%
2.03%
62%

$6

2018(3)
$10.04
0.23
0.19
0.42
(0.22)
(0.38)
(0.60)
$9.86
4.05%
0.63%(4)
2.28%(4)
53%(5)

$5

R6 Class
 
 
 
 
 
 
 
 
 
 
 
2019
$9.86
0.22
0.40
0.62
(0.22)
(0.40)
(0.62)
$9.86
6.57%
0.48%
2.18%
62%

$152,534

2018
$10.06
0.25
0.16
0.41
(0.23)
(0.38)
(0.61)
$9.86
4.01%
0.48%
2.44%
53%

$121,935

2017
$8.58
0.22
1.48
1.70
(0.22)
—
(0.22)
$10.06
19.98%
0.48%
2.31%
68%

$132,608

2016
$9.08
0.16
(0.51)
(0.35)
(0.15)
—
(0.15)
$8.58
(3.83)%
0.49%
1.76%
56%

$103,643

2015
$8.29
0.17
0.76
0.93
(0.14)
—
(0.14)
$9.08
11.30%
0.49%
1.71%
56%

$38,170



Notes to Financial Highlights
(1)
Computed using average shares outstanding throughout the period.
(2)
Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)
April 10, 2017 (commencement of sale) through March 31, 2018.
(4)
Annualized.
(5)
Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2018.

See Notes to Financial Statements.



Report of Independent Registered Public Accounting Firm

To the shareholders and the Board of Directors of American Century Capital Portfolios, Inc.:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Large Company Value Fund, one of the portfolios constituting the American Century Capital Portfolios, Inc. (the “Fund”), as of March 31, 2019, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Large Company Value Fund of the American Century Capital Portfolios, Inc. as of March 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
DELOITTE & TOUCHE LLP

Kansas City, Missouri
May 16, 2019

We have served as the auditor of one or more American Century investment companies since 1997.

26

Management

The Board of Directors

The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire by December 31 of the year in which they reach their 75th birthday.
Mr. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Director
Other Directorships Held During Past 5 Years
Independent Directors


Thomas W. Bunn (1953)
Director
Since 2017
Retired
67
SquareTwo Financial; Barings (formerly Babson Capital Funds Trust) (2013 to 2016)
Chris H. Cheesman
(1962)
Director
Since 2019
Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018)
67
None
Barry Fink
(1955)
Director
Since 2012 (independent since 2016)
Retired
67
None
Rajesh K. Gupta
(1960)
Director
Since 2019
Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to Present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019)
67
None


27

Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Director
Other Directorships Held During Past 5 Years
Independent Directors


Lynn Jenkins
(1963)
Director
Since 2019
United States Representative, U.S. House of Representatives (2009 to 2018)
67
MGP Ingredients, Inc.
Jan M. Lewis
(1957)
Director
Since 2011
Retired
67
None
John R. Whitten
(1946)
Director
Since 2008
Retired
67
Rudolph Technologies, Inc.
Stephen E. Yates
(1948)
Director and Chairman of the Board
Since 2012 (Chairman since 2018)
Retired
72
None
Interested Director


Jonathan S. Thomas
(1963)
Director and President
Since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
117
BioMed Valley Discoveries, Inc.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.

28

Officers

The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for 16 (in the case of Robert J. Leach, 15) investment companies in the American Century family of funds, unless otherwise noted. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Offices with the Funds
Principal Occupation(s) During the Past Five Years
Jonathan S. Thomas
(1963)
Director and President since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
R. Wes Campbell
(1974)
Chief Financial Officer and Treasurer since 2018
Investment Operations and Investment Accounting, ACS (2000 to present)
Amy D. Shelton
(1964)
Chief Compliance Officer and Vice President since 2014
Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present); Vice President, Client Interactions and Marketing, ACIS (2013 to 2014). Also serves as Vice President, ACIS
Charles A. Etherington
(1957)
General Counsel since 2007 and Senior Vice President since 2006
Attorney, ACC (1994 to present); Vice President, ACC (2005 to present); General Counsel, ACC (2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS
C. Jean Wade
(1964)
Vice President since 2012
Senior Vice President, ACS (2017 to present); Vice President, ACS (2000 to 2017)
Robert J. Leach
(1966)
Vice President since 2006
Vice President, ACS (2000 to present)
David H. Reinmiller
(1963)
Vice President since 2000
Attorney, ACC (1994 to present). Also serves as Vice President, ACIM and ACS
Ward D. Stauffer
(1960)
Secretary since 2005
Attorney, ACC (2003 to present)



29

Additional Information

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 the "About Us" page of American Century Investments’ website at americancentury.com and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.


Quarterly Portfolio Disclosure

The 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 on Form N-Q or as an exhibit to its reports on Form N-PORT. The fund’s Forms N-Q and Form N-PORT reports are available on the SEC’s website at sec.gov. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.

30

Other Tax Information

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund hereby designates up to the maximum amount allowable as qualified dividend income for the fiscal year ended March 31, 2019.

For corporate taxpayers, the fund hereby designates $14,587,671, or up to the maximum amount allowable, of ordinary income distributions paid during the fiscal year ended March 31, 2019 as qualified for the corporate dividends received deduction.

The fund hereby designates $33,750,098, or up to the maximum amount allowable, as long-term capital gain distributions (20% rate gain distributions) for the fiscal year ended March 31, 2019.


31

Notes


32





acihorizblkd42.jpg
 
 
 
 
Contact Us
americancentury.com
 
Automated Information Line
1-800-345-8765
 
Investor Services Representative
1-800-345-2021
or 816-531-5575
 
Investors Using Advisors
1-800-378-9878
 
Business, Not-For-Profit, Employer-Sponsored Retirement Plans
1-800-345-3533
 
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies
1-800-345-6488
 
Telecommunications Relay Service for the Deaf
711
 
 
 
 
American Century Capital Portfolios, Inc.
 
 
 
 
Investment Advisor:
American Century Investment Management, Inc.
Kansas City, Missouri
 
 
 
 
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
 
 
 
 
©2019 American Century Proprietary Holdings, Inc. All rights reserved.
CL-ANN-92269 1905
 





acihorizblkd42.jpg
                  

 
 
 
Annual Report
 
 
 
March 31, 2019
 
 
 
Mid Cap Value Fund
 
Investor Class (ACMVX)
 
I Class (AVUAX)
 
Y Class (AMVYX)
 
A Class (ACLAX)
 
C Class (ACCLX)
 
R Class (AMVRX)
 
R5 Class (AMVGX)
 
R6 Class (AMDVX)







Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.

You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.





Table of Contents
President’s Letter
2
Performance
3
Portfolio Commentary
Fund Characteristics
Shareholder Fee Example
Schedule of Investments
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
Notes to Financial Statements
Financial Highlights
Report of Independent Registered Public Accounting Firm
Management
Additional Information





















Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.


President’s Letter

jthomasrev0514.jpg Jonathan Thomas

Dear Investor:

Thank you for reviewing this annual report for the period ended March 31, 2019. Annual reports help convey important information about fund returns, including market factors that affected performance during the reporting period. For additional, updated investment and market insights, we encourage you to visit our website, americancentury.com.

Markets Ended Roller-Coaster Period on Upswing

For the first half of the period, U.S. stocks climbed higher, while bond returns headed lower. Robust economic growth, bolstered by federal tax and regulatory reform, and record corporate earnings results fueled risk-on sentiment that drove stock prices higher. Meanwhile, the combination of strong economic data, the Federal Reserve’s (Fed’s) ongoing rate-hike campaign and an uptick in inflation pushed investment-grade bond returns lower.

Market trends began changing in late 2018. Mounting investor concerns about slowing global economic and earnings growth, U.S.-China trade tensions and rising interest rates triggered widespread volatility. Stock prices plunged as investors sought safe-haven investments, including U.S. Treasuries. Furthermore, the Fed issued another rate hike in December, its fourth of the year, and maintained its hawkish outlook. Investors feared the December rate increase and the Fed’s plans for two more rate hikes in 2019 were too aggressive, and risk-off investing remained in favor.

January brought a renewed sense of stability to the markets. Investors’ concerns about growth and trade eased, and the Fed changed course, pausing its rate-hike campaign amid moderating global growth and inflation. Valuations appeared attractive after the late-2018 sell-off, and risk-on investing resumed. In March, the Fed held rates steady again, hinting additional tightening was off the table for 2019. This news drove stock and bond returns higher and left both asset classes on an upward track to end the period. Overall, stocks (S&P 500 Index) overcame their late-2018 nosedive to gain 9.50% for the period. Bonds (Bloomberg Barclays U.S. Aggregate Bond Index) bounced back from losses early in the period to return 4.48%.

We expect volatility to remain a formidable factor as investors react to global growth trends, central bank policy and geopolitical developments. We believe this scenario underscores the importance of using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.

Sincerely,
image48a01.jpg
Jonathan Thomas
President and Chief Executive Officer
American Century Investments


2

Performance
Total Returns as of March 31, 2019
 
 
 
Average Annual Returns
 
 
Ticker Symbol
1 year
5 years
10 years
Since Inception
Inception Date
Investor Class
ACMVX
0.81%
8.26%
15.17%
—
3/31/04
Russell Midcap Value Index
—
2.89%
7.21%
16.38%
—
—
I Class
AVUAX
1.07%
8.48%
15.41%
—
8/2/04
Y Class
AMVYX
1.16%
—
—
3.59%
4/10/17
A Class
ACLAX
 
 
 

1/13/05
No sales charge
 
0.57%
8.00%
14.89%
—
 
With sales charge
 
-5.21%
6.72%
14.20%
—
 
C Class
ACCLX
-0.23%
7.19%
—
10.51%
3/1/10
R Class
AMVRX
0.33%
7.73%
14.60%
—
7/29/05
R5 Class
AMVGX
1.01%
—
—
3.44%
4/10/17
R6 Class
AMDVX
1.16%
8.64%
—
9.74%
7/26/13
Average annual returns since inception are presented when ten years of performance history is not available. Fund returns would have been lower if a portion of the fees had not been waived. Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance has been adjusted to reflect this charge.

Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.

















Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

3

Growth of $10,000 Over 10 Years
$10,000 investment made March 31, 2009
Performance for other share classes will vary due to differences in fee structure.
chart-afa9e51331e5510ab12.jpg
Value on March 31, 2019
 
Investor Class — $41,089
 
 
Russell Midcap Value Index — $45,626
 
Ending value of Investor Class would have been lower if a portion of the fees had not been waived.

Total Annual Fund Operating Expenses
Investor Class
I Class
Y Class
A Class
C Class
R Class
R5 Class
R6 Class
1.01%
0.81%
0.66%
1.26%
2.01%
1.51%
0.81%
0.66%
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.










Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

4

Portfolio Commentary

Portfolio Managers: Kevin Toney, Michael Liss, Phil Davidson and Brian Woglom

Performance Summary

Mid Cap Value returned 0.81%* for the 12-month period ended March 31, 2019. The fund’s benchmark, the Russell Midcap Value Index, returned 2.89%. The fund’s return reflects operating expenses, while the index’s return does not.

The fund’s underweight and stock selection in the real estate sector detracted from relative performance. Information technology and energy were other areas of weakness. On the other hand, stock selection and our underweight in the consumer discretionary sector contributed positively to relative results. Holdings in the industrials, health care and utilities sectors were also beneficial to performance.

Real Estate, Information Technology and Energy Detracted

Throughout the year, we remained underweight in the real estate sector given our belief that valuations throughout the sector were generally extended. This sector underweight detracted from relative performance. Furthermore, our position in Weyerhaeuser, a large private owner of timberlands, negatively impacted results. The stock was pressured by a decline in timber pricing.

In the information technology sector, several holdings in the semiconductors and semiconductor equipment industry detracted from performance due to fears of capital spending declines in the memory chip market. Our underweight in the information technology sector, stemming largely from our lack of exposure to the software and information technology services industries, also weighed on performance.

A decline in the price of oil during the fourth quarter of 2018 pressured our energy holdings, including Cimarex Energy. Cimarex’s stock was also hurt by fiscal 2018 production guidance that came in below expectations. Furthermore, due to pipeline constraints, investors became concerned about the company’s ability to efficiently transport oil out of the Permian Basin. We believe those concerns were overstated and maintained a position in the company. EQT, a natural gas exploration and pipeline company, was another top detractor. The company provided disappointing guidance for cash flows in 2019 and faced challenges with the integration of assets from Rice Energy, a company that EQT acquired in late 2017.

Within the consumer staples sector, Orkla and Conagra Brands detracted from relative performance. Orkla’s stock was pressured by disappointing financial results, driven by higher food inflation and currency headwinds. However, we believe these issues are transitory and Orkla’s underlying business remains strong. Conagra underperformed due to lowered guidance on its recent acquisition of Pinnacle Foods. Conagra highlighted Pinnacle’s weak new product innovation and stated that improvement may not occur until the second half of 2019.

Financials stock Invesco was another top detractor. The asset manager underperformed due to weaker equity markets in 2018, an acceleration of net outflows and on news of its expensive acquisition of OppenheimerFunds. Paper and packaging company WestRock also underperformed due to worries that containerboard pricing and demand have peaked. Additionally, the company’s decision to acquire a smaller competitor raised concerns about the company’s debt load.

*All fund returns referenced in this commentary are for Investor Class shares. Fund returns would have been lower if a portion of the fees had not been waived. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the fund's benchmark, other share classes may not. See page 3 for returns for all share classes.

5

Consumer Discretionary, Industrials, Health Care and Utilities Contributed Positively

Consumer discretionary holding Advance Auto Parts was a key contributor. This retailer of aftermarket automotive replacement parts is a market share leader in a higher-quality industry. The company reported several quarters of strong results and raised its full-year guidance due to margin improvement and stronger-than-expected same-store sales trends. This news indicated to investors that the company’s turnaround plan is starting to show signs of effectiveness. Our underweight to the consumer discretionary sector was also beneficial, as many consumer discretionary stocks lagged due in part to trade tensions and investors’ concerns about a slowing global economy.

Industrials and health care were also areas of strength. Stock selection in industrials positively impacted performance, particularly within the building products industry. Our position in Johnson Controls International outperformed on speculation of a separation of the company’s buildings and battery businesses as well as better operating trends and execution. In the health care sector, hospital company LifePoint Health was a top contributor. The company outperformed on news that it would be acquired for a significant premium by Apollo Global Management, a private equity firm. We eliminated LifePoint following its strong performance.

In the utilities sector, NorthWestern was a top contributor. This utility stock benefited from better-than-expected regulatory developments in proceedings in Montana and from declining longer-term interest rates. Additionally, we believe the Montana Public Service Commission should be more agreeable as the makeup of the commission changed at the end of 2018. Xcel Energy also positively impacted relative returns as the company increased its long-term growth and capital spending outlook. Like other utilities, the stock also benefited from the decline in longer-term interest rates and economic uncertainty.

Portfolio Positioning

The portfolio seeks to invest in companies where we believe the valuation does not reflect the quality and normal earnings power of the company. Our process is based on individual security selection, but broad themes have emerged.

As of March 31, 2019, the portfolio is overweight in financials. Using our bottom-up investment approach, we have identified stocks that we believe offer attractive risk/reward profiles, particularly in the capital markets and banking industries. We are also overweight in industrials. Our analysis has led us to attractive companies within this fragmented sector, and we have avoided industrials that we believe are lower quality.

On the other hand, we ended the reporting period with a notable underweight in real estate. Our metrics show that valuations throughout the real estate sector are extended. As a result, we have only identified a few higher-quality real estate stocks with compelling valuations. The portfolio is also underweight in information technology. We believe valuations throughout the sector are generally less attractive following the sector’s strong performance during the first quarter of 2019.









6

Fund Characteristics
MARCH 31, 2019
Top Ten Holdings
% of net assets
iShares Russell Mid-Cap Value ETF
3.0%
Northern Trust Corp.
3.0%
Zimmer Biomet Holdings, Inc.
3.0%
Hubbell, Inc.
2.6%
BB&T Corp.
2.1%
Xcel Energy, Inc.
2.0%
Weyerhaeuser Co.
1.9%
Johnson Controls International plc
1.7%
Chubb Ltd.
1.5%
Southwest Airlines Co.
1.5%
 
 
Top Five Industries
% of net assets
Banks
9.4%
Capital Markets
6.7%
Electrical Equipment
6.6%
Oil, Gas and Consumable Fuels
5.2%
Insurance
5.1%
 
 
Types of Investments in Portfolio
% of net assets
Domestic Common Stocks
87.5%
Foreign Common Stocks*
6.8%
Exchange-Traded Funds
3.0%
Total Equity Exposure
97.3%
Temporary Cash Investments
2.6%
Other Assets and Liabilities
0.1%
*Includes depositary shares, dual listed securities and foreign ordinary shares.


7

Shareholder Fee Example

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.

The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from October 1, 2018 to March 31, 2019.

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 a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.

Hypothetical Example for Comparison Purposes

The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


8

 
Beginning
Account Value
10/1/18
Ending
Account Value
3/31/19
Expenses Paid
During Period(1) 
10/1/18 - 3/31/19
Annualized
Expense Ratio(1)
Actual
 
 
 
 
Investor Class
$1,000
$962.70
$4.75
0.97%
I Class
$1,000
$964.30
$3.77
0.77%
Y Class
$1,000
$964.40
$3.04
0.62%
A Class
$1,000
$961.50
$5.97
1.22%
C Class
$1,000
$957.60
$9.61
1.97%
R Class
$1,000
$960.90
$7.19
1.47%
R5 Class
$1,000
$963.70
$3.77
0.77%
R6 Class
$1,000
$964.40
$3.04
0.62%
Hypothetical
 
 
 
 
Investor Class
$1,000
$1,020.10
$4.89
0.97%
I Class
$1,000
$1,021.09
$3.88
0.77%
Y Class
$1,000
$1,021.84
$3.13
0.62%
A Class
$1,000
$1,018.85
$6.14
1.22%
C Class
$1,000
$1,015.11
$9.90
1.97%
R Class
$1,000
$1,017.60
$7.39
1.47%
R5 Class
$1,000
$1,021.09
$3.88
0.77%
R6 Class
$1,000
$1,021.84
$3.13
0.62%
(1)
Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.

9

Schedule of Investments

MARCH 31, 2019
 
Shares
Value
COMMON STOCKS — 94.3%
 
 
Aerospace and Defense — 0.4%
 
 
Textron, Inc.
573,517

$
29,054,371

Airlines — 1.5%
 
 
Southwest Airlines Co.
2,196,844

114,038,172

Auto Components — 1.2%
 
 
Aptiv plc
237,516

18,880,147

BorgWarner, Inc.
1,793,067

68,871,703

 
 
87,751,850

Automobiles — 1.7%
 
 
Honda Motor Co. Ltd. ADR
2,617,442

71,115,899

Thor Industries, Inc.
954,078

59,505,845

 
 
130,621,744

Banks — 9.4%
 
 
BB&T Corp.
3,395,247

157,980,843

Comerica, Inc.
863,204

63,290,117

Commerce Bancshares, Inc.
1,273,058

73,913,747

First Hawaiian, Inc.
3,616,018

94,197,269

M&T Bank Corp.
556,923

87,448,049

Prosperity Bancshares, Inc.
610,416

42,155,329

SunTrust Banks, Inc.
590,067

34,961,470

UMB Financial Corp.
1,364,244

87,366,186

Westamerica Bancorporation
1,167,010

72,121,218

 
 
713,434,228

Beverages — 0.5%
 
 
Molson Coors Brewing Co., Class B
610,039

36,388,826

Building Products — 1.9%
 
 
Johnson Controls International plc
3,498,383

129,230,268

Masco Corp.
466,678

18,345,112

 
 
147,575,380

Capital Markets — 6.7%
 
 
Ameriprise Financial, Inc.
886,976

113,621,626

Invesco Ltd.
5,258,367

101,539,067

Northern Trust Corp.
2,529,810

228,720,122

State Street Corp.
1,060,563

69,795,651

 
 
513,676,466

Commercial Services and Supplies — 0.5%
 
 
Republic Services, Inc.
463,385

37,246,886

Containers and Packaging — 3.5%
 
 
Graphic Packaging Holding Co.
8,265,949

104,398,936

Packaging Corp. of America
510,572

50,740,645

Sonoco Products Co.
1,091,772

67,176,731


10

 
Shares
Value
WestRock Co.
1,096,782

$
42,061,590

 
 
264,377,902

Distributors — 0.7%
 
 
Genuine Parts Co.
486,618

54,515,815

Electric Utilities — 4.6%
 
 
Edison International
834,122

51,648,834

Eversource Energy
738,556

52,400,548

Pinnacle West Capital Corp.
1,033,839

98,814,332

Xcel Energy, Inc.
2,655,732

149,278,696

 
 
352,142,410

Electrical Equipment — 6.6%
 
 
Eaton Corp. plc
949,663

76,504,851

Emerson Electric Co.
1,394,983

95,514,486

Hubbell, Inc.
1,680,090

198,217,018

nVent Electric plc
2,468,478

66,599,537

Schneider Electric SE
791,925

62,130,646

 
 
498,966,538

Electronic Equipment, Instruments and Components — 1.0%
 
 
TE Connectivity Ltd.
933,370

75,369,628

Energy Equipment and Services — 2.0%
 
 
Baker Hughes a GE Co.
3,050,289

84,554,011

Halliburton Co.
1,295,646

37,962,428

National Oilwell Varco, Inc.
1,258,896

33,536,989

 
 
156,053,428

Equity Real Estate Investment Trusts (REITs) — 4.9%
 
 
American Tower Corp.
172,783

34,048,618

Empire State Realty Trust, Inc., Class A
2,359,296

37,276,877

MGM Growth Properties LLC, Class A
2,565,939

82,751,533

Piedmont Office Realty Trust, Inc., Class A
3,307,115

68,953,348

Weyerhaeuser Co.
5,566,793

146,629,327

 
 
369,659,703

Food and Staples Retailing — 0.9%
 
 
Sysco Corp.
1,083,609

72,341,737

Food Products — 4.7%
 
 
Conagra Brands, Inc.
2,807,323

77,875,140

J.M. Smucker Co. (The)
361,865

42,157,273

Kellogg Co.
705,837

40,500,927

Mondelez International, Inc., Class A
1,986,098

99,146,012

Orkla ASA
13,216,116

101,439,067

 
 
361,118,419

Gas Utilities — 1.6%
 
 
Atmos Energy Corp.
563,020

57,951,648

Spire, Inc.
746,151

61,400,766

 
 
119,352,414

Health Care Equipment and Supplies — 4.1%
 
 
Hologic, Inc.(1) 
712,021

34,461,816

Siemens Healthineers AG
1,206,568

50,281,336


11

 
Shares
Value
Zimmer Biomet Holdings, Inc.
1,769,581

$
225,975,494

 
 
310,718,646

Health Care Providers and Services — 4.4%
 
 
Cardinal Health, Inc.
2,107,969

101,498,707

Henry Schein, Inc.(1) 
928,105

55,788,392

McKesson Corp.
638,419

74,733,328

Quest Diagnostics, Inc.
1,138,460

102,370,323

 
 
334,390,750

Health Care Technology — 1.0%
 
 
Cerner Corp.(1) 
1,314,357

75,194,364

Hotels, Restaurants and Leisure — 1.7%
 
 
Carnival Corp.
1,218,192

61,786,698

Sodexo SA
624,283

68,740,431

 
 
130,527,129

Household Durables — 1.0%
 
 
PulteGroup, Inc.
2,772,579

77,521,309

Household Products — 1.0%
 
 
Kimberly-Clark Corp.
623,888

77,299,723

Insurance — 5.1%
 
 
Aflac, Inc.
945,622

47,281,100

Arthur J. Gallagher & Co.
294,187

22,976,005

Brown & Brown, Inc.
1,417,942

41,843,468

Chubb Ltd.
828,689

116,082,755

ProAssurance Corp.
982,715

34,011,766

Reinsurance Group of America, Inc.
519,801

73,801,346

Torchmark Corp.
312,526

25,611,506

Travelers Cos., Inc. (The)
199,600

27,377,136

 
 
388,985,082

Machinery — 3.7%
 
 
Atlas Copco AB, B Shares
2,416,635

59,809,591

Cummins, Inc.
629,385

99,361,010

IMI plc
6,026,961

75,201,211

PACCAR, Inc.
725,578

49,440,885

 
 
283,812,697

Multi-Utilities — 3.2%
 
 
Ameren Corp.
1,145,831

84,275,870

NorthWestern Corp.
1,538,815

108,347,964

WEC Energy Group, Inc.
657,275

51,977,307

 
 
244,601,141

Multiline Retail — 0.7%
 
 
Target Corp.
706,445

56,699,276

Oil, Gas and Consumable Fuels — 5.2%
 
 
Anadarko Petroleum Corp.
1,145,451

52,095,112

Cimarex Energy Co.
785,537

54,909,036

Devon Energy Corp.
2,426,484

76,579,835

EQT Corp.
2,702,862

56,057,358

Equitrans Midstream Corp.
2,162,289

47,094,654


12

 
Shares/Principal Amount
Value
Imperial Oil Ltd.
1,191,609

$
32,528,826

Noble Energy, Inc.
3,048,527

75,390,073

 
 
394,654,894

Road and Rail — 1.0%
 
 
Heartland Express, Inc.
3,967,411

76,491,684

Semiconductors and Semiconductor Equipment — 3.7%
 
 
Applied Materials, Inc.
2,173,864

86,215,446

Maxim Integrated Products, Inc.
1,741,805

92,611,772

Microchip Technology, Inc.
732,528

60,770,523

Teradyne, Inc.
1,007,390

40,134,418

 
 
279,732,159

Specialty Retail — 1.1%
 
 
Advance Auto Parts, Inc.
479,306

81,736,052

Technology Hardware, Storage and Peripherals — 0.7%
 
 
HP, Inc.
2,717,632

52,803,590

Thrifts and Mortgage Finance — 1.0%
 
 
Capitol Federal Financial, Inc.
5,644,927

75,359,775

Trading Companies and Distributors — 1.4%
 
 
MSC Industrial Direct Co., Inc., Class A
1,256,314

103,909,731

TOTAL COMMON STOCKS
(Cost $6,444,954,795)
 
7,178,123,919

EXCHANGE-TRADED FUNDS — 3.0%
 
 
iShares Russell Mid-Cap Value ETF
(Cost $221,384,420)
2,642,457

229,523,815

TEMPORARY CASH INVESTMENTS — 2.6%
 
 
Federal Home Loan Bank Discount Notes, 2.30%, 4/1/19(2)
$
100,000,000

100,000,000

Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.125% - 2.875%, 9/30/19 - 2/15/44, valued at $84,391,552), in a joint trading account at 2.35%, dated 3/29/19, due 4/1/19 (Delivery value $82,721,897)
 
82,705,700

Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.50%, 8/15/23, valued at $14,102,823), at 1.25%, dated 3/29/19, due 4/1/19 (Delivery value $13,825,440)
 
13,824,000

State Street Institutional U.S. Government Money Market Fund, Premier Class
43,869

43,869

TOTAL TEMPORARY CASH INVESTMENTS
(Cost $196,573,569)
 
196,573,569

TOTAL INVESTMENT SECURITIES — 99.9%
(Cost $6,862,912,784)
 
7,604,221,303

OTHER ASSETS AND LIABILITIES — 0.1%
 
8,372,630

TOTAL NET ASSETS — 100.0%
 
$
7,612,593,933







13

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Currency Purchased
Currency Sold
  Counterparty
Settlement Date
Unrealized Appreciation
(Depreciation)
CAD
1,347,114
USD
1,008,464
Morgan Stanley
6/28/19
$
1,778

USD
28,124,286
CAD
37,658,419
Morgan Stanley
6/28/19
(116,918
)
EUR
4,137,260
USD
4,676,792
Credit Suisse AG
6/28/19
(1,633
)
USD
159,226,531
EUR
139,559,768
Credit Suisse AG
6/28/19
1,522,143

GBP
1,408,802
USD
1,871,533
JPMorgan Chase Bank N.A.
6/28/19
(28,685
)
USD
65,597,943
GBP
49,487,377
JPMorgan Chase Bank N.A.
6/28/19
863,710

USD
44,038,582
JPY
4,813,483,066
Bank of America N.A.
6/28/19
311,237

NOK
17,475,543
USD
2,030,412
Goldman Sachs & Co.
6/28/19
2,520

USD
88,162,823
NOK
749,463,344
Goldman Sachs & Co.
6/28/19
977,637

USD
50,839,388
SEK
466,187,016
Goldman Sachs & Co.
6/28/19
369,226

 
 
 
 
 
 
$
3,901,015


NOTES TO SCHEDULE OF INVESTMENTS
ADR
-
American Depositary Receipt
CAD
-
Canadian Dollar
EUR
-
Euro
GBP
-
British Pound
JPY
-
Japanese Yen
NOK
-
Norwegian Krone
SEK
-
Swedish Krona
USD
-
United States Dollar
(1)
Non-income producing.
(2)
The rate indicated is the yield to maturity at purchase.

See Notes to Financial Statements.

14

Statement of Assets and Liabilities
MARCH 31, 2019
 
Assets
 
Investment securities, at value (cost of $6,862,912,784)
$
7,604,221,303

Receivable for investments sold
17,459,774

Receivable for capital shares sold
6,364,488

Unrealized appreciation on forward foreign currency exchange contracts
4,048,251

Dividends and interest receivable
13,641,425

 
7,645,735,241

 
 
Liabilities
 
Payable for investments purchased
16,011,601

Payable for capital shares redeemed
11,374,011

Unrealized depreciation on forward foreign currency exchange contracts
147,236

Accrued management fees
5,409,025

Distribution and service fees payable
199,435

 
33,141,308

 
 
Net Assets
$
7,612,593,933

 
 
Net Assets Consist of:
 
Capital (par value and paid-in surplus)
$
7,009,260,768

Distributable earnings
603,333,165

 
$
7,612,593,933


 
Net Assets
Shares Outstanding
Net Asset Value
Per Share
Investor Class, $0.01 Par Value

$3,514,131,423

231,273,232
$15.19
I Class, $0.01 Par Value

$1,535,449,317

100,983,100
$15.21
Y Class, $0.01 Par Value

$16,061,280

1,055,880
$15.21
A Class, $0.01 Par Value

$358,500,377

23,644,306
$15.16*
C Class, $0.01 Par Value

$94,909,532

6,334,232
$14.98
R Class, $0.01 Par Value

$96,701,205

6,397,609
$15.12
R5 Class, $0.01 Par Value

$58,526,051

3,847,926
$15.21
R6 Class, $0.01 Par Value

$1,938,314,748

127,491,274
$15.20
* Maximum offering price $16.08 (net asset value divided by 0.9425).


See Notes to Financial Statements.


15

Statement of Operations
YEAR ENDED MARCH 31, 2019
 
Investment Income (Loss)
 
Income:
 
Dividends (including $2,289,573 from affiliates and net of foreign taxes withheld of $1,394,910)
$
182,318,264

Interest
3,820,384

 
186,138,648

 
 
Expenses:
 
Management fees
70,168,557

Distribution and service fees:
 
A Class
1,115,724

C Class
1,181,295

R Class
528,497

Directors' fees and expenses
220,918

Other expenses
4,173

 
73,219,164

Fees waived(1)
(2,950,612
)
 
70,268,552

 
 
Net investment income (loss)
115,870,096

 
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) on:
 
Investment transactions (including $39,419,773 from affiliates)
453,359,597

Forward foreign currency exchange contract transactions
27,393,784

Foreign currency translation transactions
(28,585
)
 
480,724,796

 
 
Change in net unrealized appreciation (depreciation) on:
 
Investments (including $4,100,285 from affiliates)
(535,709,317
)
Forward foreign currency exchange contracts
3,368,027

Translation of assets and liabilities in foreign currencies
(2,441
)
 
(532,343,731
)
 
 
Net realized and unrealized gain (loss)
(51,618,935
)
 
 
Net Increase (Decrease) in Net Assets Resulting from Operations
$
64,251,161


(1)
Amount consists of $1,425,370, $640,887, $2,537, $168,462, $44,347, $39,356, $14,993 and $614,660 for Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class, respectively.


See Notes to Financial Statements.


16

Statement of Changes in Net Assets
YEARS ENDED MARCH 31, 2019 AND MARCH 31, 2018
Increase (Decrease) in Net Assets
March 31, 2019
March 31, 2018
Operations
 
 
Net investment income (loss)
$
115,870,096

$
142,330,750

Net realized gain (loss)
480,724,796

767,738,192

Change in net unrealized appreciation (depreciation)
(532,343,731
)
(425,161,721
)
Net increase (decrease) in net assets resulting from operations
64,251,161

484,907,221

 
 
 
Distributions to Shareholders
 
 
From earnings:(1)
 
 
Investor Class
(421,857,048
)
(397,967,429
)
I Class
(199,006,704
)
(181,184,424
)
Y Class
(1,294,431
)
(1,501
)
A Class
(45,643,306
)
(54,304,797
)
C Class
(11,830,967
)
(12,007,752
)
R Class
(11,094,927
)
(11,490,512
)
R5 Class
(5,849,134
)
(11,797
)
R6 Class
(196,398,747
)
(135,258,598
)
Decrease in net assets from distributions
(892,975,264
)
(792,226,810
)
 
 
 
Capital Share Transactions
 
 
Net increase (decrease) in net assets from capital share transactions (Note 5)
50,729,211

(240,542,398
)
 
 
 
Net increase (decrease) in net assets
(777,994,892
)
(547,861,987
)
 
 
 
Net Assets
 
 
Beginning of period
8,390,588,825

8,938,450,812

End of period
$
7,612,593,933

$
8,390,588,825

(1)
Prior period presentation has been updated to reflect the current period combination of distributions to shareholders from net investment income and net realized gains. Distributions from net investment income were $(69,026,226), $(33,335,729), $(1,106), $(8,178,699), $(902,988), $(1,415,843), $(1,629) and $(26,678,396) for Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class, respectively. Distributions from net realized gains were $(328,941,203), $(147,848,695), $(395), $(46,126,098), $(11,104,764), $(10,074,669), $(10,168) and $(108,580,202) for Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class, respectively.


See Notes to Financial Statements.


17

Notes to Financial Statements 

MARCH 31, 2019

1. Organization

American Century Capital Portfolios, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Mid Cap 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. Income is a secondary objective.

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. Sale of the Y Class and R5 Class commenced on April 10, 2017.

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 per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
 
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
 
Fixed income securities are valued at the evaluated mean as provided by independent pricing services or at the mean of the most recent bid and asked prices as provided by investment dealers. U.S. Treasury and Government Agency securities are valued using market models that consider trade data, quotations from dealers and active market makers, relevant yield curve and spread data, creditworthiness, trade data or market information on comparable securities, and other relevant security specific information.
 
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value. Forward foreign currency exchange contracts are valued at the mean of the appropriate forward exchange rate at the close of the NYSE as provided by an independent pricing service.
 

18

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 net asset value 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. If significant fluctuations in foreign markets are identified, 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.
 

19

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, if any, are generally declared and paid quarterly. Distributions from net realized gains, if any, are generally declared and paid annually.
 
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 all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. From April 1, 2018 through July 31, 2018, the investment advisor agreed to waive 0.05% of the fund's management fee. Effective August 1, 2018, the investment advisor agreed to waive 0.03% of the fund's management fee. The investment advisor expects this waiver to continue until July 31, 2019 and cannot terminate it prior to such date without the approval of the Board of Directors.


20

The annual management fee and the effective annual management fee after waiver for each class for the period ended March 31, 2019 are as follows:
 
Annual
Management Fee
Effective Annual Management
Fee After Waiver
Investor Class
1.00%
0.96%
I Class
0.80%
0.76%
Y Class
0.65%
0.61%
A Class
1.00%
0.96%
C Class
1.00%
0.96%
R Class
1.00%
0.96%
R5 Class
0.80%
0.76%
R6 Class
0.65%
0.61%
 
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 March 31, 2019 are detailed in the Statement of Operations.
 
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
 
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $45,475,359 and $78,960,237, respectively. The effect of interfund transactions on the Statement of Operations was $10,938,460 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 March 31, 2019 were $4,117,512,964 and $4,816,954,440, respectively.


21

5. Capital Share Transactions

Transactions in shares of the fund were as follows:
 
Year ended
March 31, 2019
Year ended
March 31, 2018(1)
 
Shares
Amount
Shares
Amount
Investor Class/Shares Authorized
1,600,000,000

 
1,500,000,000

 
Sold
29,281,089

$
479,115,289

52,148,585

$
926,733,097

Issued in reinvestment of distributions
28,900,782

417,721,419

22,618,241

394,404,052

Redeemed
(73,978,700
)
(1,211,860,870
)
(92,664,226
)
(1,650,942,627
)
 
(15,796,829
)
(315,024,162
)
(17,897,400
)
(329,805,478
)
I Class/Shares Authorized
800,000,000

 
800,000,000

 
Sold
26,204,693

432,486,638

46,014,891

820,456,378

Issued in reinvestment of distributions
12,535,312

181,672,401

9,275,295

161,888,494

Redeemed
(42,594,448
)
(674,728,415
)
(42,062,105
)
(753,279,422
)
 
(3,854,443
)
(60,569,376
)
13,228,081

229,065,450

Y Class/Shares Authorized
70,000,000

 
50,000,000

 
Sold
1,238,573

20,627,236

33,331

582,885

Issued in reinvestment of distributions
81,860

1,181,629

86

1,501

Redeemed
(297,967
)
(4,892,427
)
(3
)
(58
)
 
1,022,466

16,916,438

33,414

584,328

A Class/Shares Authorized
225,000,000

 
300,000,000

 
Sold
4,440,855

71,286,193

6,291,603

111,898,706

Issued in reinvestment of distributions
2,919,299

42,024,485

2,914,841

50,699,575

Redeemed
(15,370,108
)
(251,287,162
)
(33,324,071
)
(593,005,750
)
 
(8,009,954
)
(137,976,484
)
(24,117,627
)
(430,407,469
)
C Class/Shares Authorized
60,000,000

 
60,000,000

 
Sold
275,778

4,299,710

386,424

6,784,394

Issued in reinvestment of distributions
791,241

11,153,466

658,516

11,314,159

Redeemed
(2,735,564
)
(42,650,699
)
(2,194,984
)
(38,644,638
)
 
(1,668,545
)
(27,197,523
)
(1,150,044
)
(20,546,085
)
R Class/Shares Authorized
60,000,000

 
60,000,000

 
Sold
1,151,992

18,427,617

907,607

16,056,712

Issued in reinvestment of distributions
771,057

11,028,708

657,132

11,386,397

Redeemed
(2,578,965
)
(42,234,447
)
(3,086,353
)
(54,812,335
)
 
(655,916
)
(12,778,122
)
(1,521,614
)
(27,369,226
)
R5 Class/Shares Authorized
30,000,000

 
50,000,000

 
Sold
3,908,660

66,466,749

22,773

411,867

Issued in reinvestment of distributions
404,046

5,849,134

677

11,797

Redeemed
(483,091
)
(7,788,943
)
(5,139
)
(91,450
)
 
3,829,615

64,526,940

18,311

332,214

R6 Class/Shares Authorized
700,000,000

 
440,000,000

 
Sold
45,719,202

718,717,319

37,989,352

680,475,487

Issued in reinvestment of distributions
13,543,023

196,398,747

7,747,040

135,258,598

Redeemed
(24,053,371
)
(392,284,566
)
(26,731,710
)
(478,130,217
)
 
35,208,854

522,831,500

19,004,682

337,603,868

Net increase (decrease)
10,075,248

$
50,729,211

(12,402,197
)
$
(240,542,398
)

(1)
April 10, 2017 (commencement of sale) through March 31, 2018 for the Y Class and R5 Class.


22

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
 
 
 
  Electrical Equipment
$
436,835,892

$
62,130,646

—

  Food Products
259,679,352

101,439,067

—

  Health Care Equipment and Supplies
260,437,310

50,281,336

—

  Hotels, Restaurants and Leisure
61,786,698

68,740,431

—

  Machinery
148,801,895

135,010,802

—

  Oil, Gas and Consumable Fuels
362,126,068

32,528,826

—

  Other Industries
5,198,325,596

—

—

Exchange-Traded Funds
229,523,815

—

—

Temporary Cash Investments
43,869

196,529,700

—

 
$
6,957,560,495

$
646,660,808

—

Other Financial Instruments
 
 
 
Forward Foreign Currency Exchange Contracts
—

$
4,048,251

—

      
 
 
 
Liabilities
 
 
 
Other Financial Instruments
 
 
 
Forward Foreign Currency Exchange Contracts
—

$
147,236

—














23


7. Affiliated Company Transactions

If a fund's holding represents ownership of 5% or more of the voting securities of a company, the company is affiliated as defined in the 1940 Act. A summary of transactions for each company which is or was an affiliate at or during the period ended March 31, 2019 follows (amounts in thousands):
Company
Beginning
Value
Purchase
Cost
Sales Cost
Change in Net
Unrealized
Appreciation
(Depreciation)
Ending
Value
Ending
Shares
Net Realized
Gain (Loss)
Income
LifePoint Health, Inc.(1)(2)
$
101,555

$
1,662

$
105,152

$
1,935

—

—

$
36,316

—

Westamerica Bancorporation(1)
87,018

4,968

22,030

2,165

(1 
) 
(1 
) 
3,104

$
2,290

 
$
188,573

$
6,630

$
127,182

$
4,100

—

—

$
39,420

$
2,290


(1)
Company was not an affiliate at March 31, 2019.
(2)
Non-income producing.

8. Derivative Instruments

Foreign Currency Risk — The fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The value of foreign investments held by a fund may be significantly affected by changes in foreign currency exchange rates. The dollar value of a foreign security generally decreases when the value of the dollar rises against the foreign currency in which the security is denominated and tends to increase when the value of the dollar declines against such foreign currency. A fund may enter into forward foreign currency exchange contracts to reduce a fund's exposure to foreign currency exchange rate fluctuations. The net U.S. dollar value of foreign currency underlying all contractual commitments held by a fund and the resulting unrealized appreciation or depreciation are determined daily. Realized gain or loss is recorded upon the termination of the contract. Net realized and unrealized gains or losses occurring during the holding period of forward foreign currency exchange contracts are a component of net realized gain (loss) on forward foreign currency exchange contract transactions and change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts, respectively. A fund bears the risk of an unfavorable change in the foreign currency exchange rate underlying the forward contract. Additionally, losses, up to the fair value, may arise if the counterparties do not perform under the contract terms. The fund's average U.S. dollar exposure to foreign currency risk derivative instruments held during the period was $425,608,367.
 
The value of foreign currency risk derivative instruments as of March 31, 2019, is disclosed on the Statement of Assets and Liabilities as an asset of $4,048,251 in unrealized appreciation on forward foreign currency exchange contracts and a liability of $147,236 in unrealized depreciation on forward foreign currency exchange contracts. For the year ended March 31, 2019, the effect of foreign currency risk derivative instruments on the Statement of Operations was $27,393,784 in net realized gain (loss) on forward foreign currency exchange contract transactions and $3,368,027 in change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts.
 
9. Risk Factors

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.

24

10. Federal Tax Information

The tax character of distributions paid during the years ended March 31, 2019 and March 31, 2018 were as follows:
 
2019
2018
Distributions Paid From
 
 
Ordinary income
$
172,249,185

$
220,320,242

Long-term capital gains
$
720,726,079

$
571,906,568


The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
 
As of period end, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments
$
6,984,967,528

Gross tax appreciation of investments
$
1,048,047,890

Gross tax depreciation of investments
(428,794,115
)
Net tax appreciation (depreciation) of investments
619,253,775

Net tax appreciation (depreciation) on derivatives and translation of assets and liabilities in foreign currencies
(1,660
)
Net tax appreciation (depreciation)
$
619,252,115

Undistributed ordinary income
$
7,823,419

Post-October capital loss deferral
$
(23,742,369
)

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.

Loss deferrals 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.

25

Financial Highlights
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
 
 
Per-Share Data
 
 
 
 
 
 
 
Ratios and Supplemental Data
 
 
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment
Income
(Loss)(1)
Net
Realized
and
Unrealized
Gain (Loss)
Total From
Investment
Operations
Net
Investment
Income
Net
Realized
Gains
Total
Distributions
Net Asset
Value,
End
of Period
Total
Return(2)
Operating
Expenses
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
2019
$17.09
0.23
(0.21)
0.02
(0.21)
(1.71)
(1.92)
$15.19
0.81%
0.96%
1.00%
1.38%
1.34%
53%

$3,514,131

2018
$17.76
0.28
0.71
0.99
(0.27)
(1.39)
(1.66)
$17.09
5.51%
0.96%
1.00%
1.57%
1.53%
47%

$4,223,276

2017
$15.32
0.22
2.93
3.15
(0.23)
(0.48)
(0.71)
$17.76
20.71%
0.98%
1.00%
1.32%
1.30%
49%

$4,706,704

2016
$16.70
0.19
0.06
0.25
(0.19)
(1.44)
(1.63)
$15.32
1.94%
1.00%
1.01%
1.19%
1.18%
66%

$3,554,131

2015
$16.35
0.20
1.98
2.18
(0.18)
(1.65)
(1.83)
$16.70
13.62%
1.00%
1.00%
1.16%
1.16%
66%

$3,771,117

I Class
2019
$17.10
0.26
(0.20)
0.06
(0.24)
(1.71)
(1.95)
$15.21
1.07%
0.76%
0.80%
1.58%
1.54%
53%

$1,535,449

2018
$17.77
0.32
0.71
1.03
(0.31)
(1.39)
(1.70)
$17.10
5.72%
0.76%
0.80%
1.77%
1.73%
47%

$1,793,037

2017
$15.33
0.26
2.93
3.19
(0.27)
(0.48)
(0.75)
$17.77
20.95%
0.78%
0.80%
1.52%
1.50%
49%

$1,628,060

2016
$16.71
0.22
0.06
0.28
(0.22)
(1.44)
(1.66)
$15.33
2.14%
0.80%
0.81%
1.39%
1.38%
66%

$1,153,899

2015
$16.36
0.23
1.99
2.22
(0.22)
(1.65)
(1.87)
$16.71
13.83%
0.80%
0.80%
1.36%
1.36%
66%

$1,017,915

Y Class
2019
$17.11
0.31
(0.24)
0.07
(0.26)
(1.71)
(1.97)
$15.21
1.16%
0.61%
0.65%
1.73%
1.69%
53%

$16,061

2018(3)
$17.76
0.32
0.75
1.07
(0.33)
(1.39)
(1.72)
$17.11
5.97%
0.61%(4)
0.65%(4)
1.89%(4)
1.85%(4)
47%(5)

$572



For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
 
 
Per-Share Data
 
 
 
 
 
 
 
Ratios and Supplemental Data
 
 
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment
Income
(Loss)(1)
Net
Realized
and
Unrealized
Gain (Loss)
Total From
Investment
Operations
Net
Investment
Income
Net
Realized
Gains
Total
Distributions
Net Asset
Value,
End
of Period
Total
Return(2)
Operating
Expenses
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
2019
$17.06
0.18
(0.20)
(0.02)
(0.17)
(1.71)
(1.88)
$15.16
0.57%
1.21%
1.25%
1.13%
1.09%
53%

$358,500

2018
$17.73
0.22
0.73
0.95
(0.23)
(1.39)
(1.62)
$17.06
5.26%
1.21%
1.25%
1.32%
1.28%
47%

$540,108

2017
$15.30
0.18
2.92
3.10
(0.19)
(0.48)
(0.67)
$17.73
20.37%
1.23%
1.25%
1.07%
1.05%
49%

$989,014

2016
$16.68
0.15
0.06
0.21
(0.15)
(1.44)
(1.59)
$15.30
1.69%
1.25%
1.26%
0.94%
0.93%
66%

$1,360,886

2015
$16.33
0.15
2.00
2.15
(0.15)
(1.65)
(1.80)
$16.68
13.40%
1.25%
1.25%
0.91%
0.91%
66%

$1,464,424

C Class
2019
$16.89
0.06
(0.21)
(0.15)
(0.05)
(1.71)
(1.76)
$14.98
(0.23)%
1.96%
2.00%
0.38%
0.34%
53%

$94,910

2018
$17.58
0.10
0.71
0.81
(0.11)
(1.39)
(1.50)
$16.89
4.48%
1.96%
2.00%
0.57%
0.53%
47%

$135,133

2017
$15.17
0.06
2.90
2.96
(0.07)
(0.48)
(0.55)
$17.58
19.56%
1.98%
2.00%
0.32%
0.30%
49%

$160,893

2016
$16.57
0.03
0.06
0.09
(0.05)
(1.44)
(1.49)
$15.17
0.90%
2.00%
2.01%
0.19%
0.18%
66%

$102,906

2015
$16.26
0.03
1.97
2.00
(0.04)
(1.65)
(1.69)
$16.57
12.53%
2.00%
2.00%
0.16%
0.16%
66%

$79,490

R Class
2019
$17.02
0.14
(0.20)
(0.06)
(0.13)
(1.71)
(1.84)
$15.12
0.33%
1.46%
1.50%
0.88%
0.84%
53%

$96,701

2018
$17.69
0.19
0.71
0.90
(0.18)
(1.39)
(1.57)
$17.02
5.02%
1.46%
1.50%
1.07%
1.03%
47%

$120,024

2017
$15.26
0.14
2.92
3.06
(0.15)
(0.48)
(0.63)
$17.69
20.12%
1.48%
1.50%
0.82%
0.80%
49%

$151,705

2016
$16.64
0.11
0.06
0.17
(0.11)
(1.44)
(1.55)
$15.26
1.43%
1.50%
1.51%
0.69%
0.68%
66%

$127,581

2015
$16.31
0.11
1.98
2.09
(0.11)
(1.65)
(1.76)
$16.64
13.07%
1.50%
1.50%
0.66%
0.66%
66%

$130,669



For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
 
 
Per-Share Data
 
 
 
 
 
 
 
Ratios and Supplemental Data
 
 
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment
Income
(Loss)(1)
Net
Realized
and
Unrealized
Gain (Loss)
Total From
Investment
Operations
Net
Investment
Income
Net
Realized
Gains
Total
Distributions
Net Asset
Value,
End
of Period
Total
Return(2)
Operating
Expenses
Operating
Expenses
(before
expense
waiver)
Net
Investment
Income
(Loss)
Net
Investment
Income (Loss)
(before
expense
waiver)
Portfolio
Turnover
Rate
Net
Assets,
End of
Period (in thousands)
R5 Class
2019
$17.11
0.28
(0.23)
0.05
(0.24)
(1.71)
(1.95)
$15.21
1.01%
0.76%
0.80%
1.58%
1.54%
53%

$58,526

2018(3)
$17.76
0.29
0.76
1.05
(0.31)
(1.39)
(1.70)
$17.11
5.83%
0.76%(4)
0.80%(4)
1.70%(4)
1.66%(4)
47%(5)

$313

R6 Class
2019
$17.10
0.29
(0.22)
0.07
(0.26)
(1.71)
(1.97)
$15.20
1.16%
0.61%
0.65%
1.73%
1.69%
53%

$1,938,315

2018
$17.77
0.34
0.72
1.06
(0.34)
(1.39)
(1.73)
$17.10
5.88%
0.61%
0.65%
1.92%
1.88%
47%

$1,578,125

2017
$15.33
0.29
2.92
3.21
(0.29)
(0.48)
(0.77)
$17.77
21.13%
0.63%
0.65%
1.67%
1.65%
49%

$1,302,074

2016
$16.71
0.25
0.05
0.30
(0.24)
(1.44)
(1.68)
$15.33
2.29%
0.65%
0.66%
1.54%
1.53%
66%

$544,182

2015
$16.35
0.26
1.99
2.25
(0.24)
(1.65)
(1.89)
$16.71
14.07%
0.65%
0.65%
1.51%
1.51%
66%

$219,661

Notes to Financial Highlights
(1)
Computed using average shares outstanding throughout the period.
(2)
Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)
April 10, 2017 (commencement of sale) through March 31, 2018.
(4)
Annualized.
(5)
Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2018.
See Notes to Financial Statements.


Report of Independent Registered Public Accounting Firm

To the shareholders and the Board of Directors of American Century Capital Portfolios, Inc.:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Mid Cap Value Fund, one of the portfolios constituting the American Century Capital Portfolios, Inc. (the “Fund”), as of March 31, 2019, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Mid Cap Value Fund of the American Century Capital Portfolios, Inc. as of March 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP
Kansas City, Missouri
May 16, 2019

We have served as the auditor of one or more American Century investment companies since 1997.

29

Management

The Board of Directors

The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire by December 31 of the year in which they reach their 75th birthday.
Mr. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Director
Other Directorships Held During Past 5 Years
Independent Directors


Thomas W. Bunn (1953)
Director
Since 2017
Retired
67
SquareTwo Financial; Barings (formerly Babson Capital Funds Trust) (2013 to 2016)
Chris H. Cheesman
(1962)
Director
Since 2019
Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018)
67
None
Barry Fink
(1955)
Director
Since 2012 (independent since 2016)
Retired
67
None
Rajesh K. Gupta
(1960)
Director
Since 2019
Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to Present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019)
67
None


30

Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Director
Other Directorships Held During Past 5 Years
Independent Directors


Lynn Jenkins
(1963)
Director
Since 2019
United States Representative, U.S. House of Representatives (2009 to 2018)
67
MGP Ingredients, Inc.
Jan M. Lewis
(1957)
Director
Since 2011
Retired
67
None
John R. Whitten
(1946)
Director
Since 2008
Retired
67
Rudolph Technologies, Inc.
Stephen E. Yates
(1948)
Director and Chairman of the Board
Since 2012 (Chairman since 2018)
Retired
72
None
Interested Director


Jonathan S. Thomas
(1963)
Director and President
Since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
117
BioMed Valley Discoveries, Inc.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.

31

Officers

The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for 16 (in the case of Robert J. Leach, 15) investment companies in the American Century family of funds, unless otherwise noted. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Offices with the Funds
Principal Occupation(s) During the Past Five Years
Jonathan S. Thomas
(1963)
Director and President since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
R. Wes Campbell
(1974)
Chief Financial Officer and Treasurer since 2018
Investment Operations and Investment Accounting, ACS (2000 to present)
Amy D. Shelton
(1964)
Chief Compliance Officer and Vice President since 2014
Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present); Vice President, Client Interactions and Marketing, ACIS (2013 to 2014). Also serves as Vice President, ACIS
Charles A. Etherington
(1957)
General Counsel since 2007 and Senior Vice President since 2006
Attorney, ACC (1994 to present); Vice President, ACC (2005 to present); General Counsel, ACC (2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS
C. Jean Wade
(1964)
Vice President since 2012
Senior Vice President, ACS (2017 to present); Vice President, ACS (2000 to 2017)
Robert J. Leach
(1966)
Vice President since 2006
Vice President, ACS (2000 to present)
David H. Reinmiller
(1963)
Vice President since 2000
Attorney, ACC (1994 to present). Also serves as Vice President, ACIM and ACS
Ward D. Stauffer
(1960)
Secretary since 2005
Attorney, ACC (2003 to present)



32

Additional Information

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 the "About Us" page of American Century Investments’ website at americancentury.com and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.


Quarterly Portfolio Disclosure

The 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 on Form N-Q or as an exhibit to its reports on Form N-PORT. The fund’s Forms N-Q and Form N-PORT reports are available on the SEC’s website at sec.gov. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.

33

Other Tax Information

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund hereby designates up to the maximum amount allowable as qualified dividend income for the fiscal year ended March 31, 2019.

For corporate taxpayers, the fund hereby designates $147,630,756, or up to the maximum amount allowable, of ordinary income distributions paid during the fiscal year ended March 31, 2019 as qualified for the corporate dividends received deduction.

The fund hereby designates $63,977,583 as qualified short-term capital gain distributions for purposes of Internal Revenue Code Section 871 for the fiscal year ended March 31, 2019.

The fund hereby designates $720,726,079, or up to the maximum amount allowable, as long-term capital gain distributions (20% rate gain distributions) for the fiscal year ended March 31, 2019.



34

Notes
























































35

Notes






















































36

Notes






















































37

Notes






















































38

Notes


39

Notes












































40




acihorizblkd42.jpg
 
 
 
 
Contact Us
americancentury.com
 
Automated Information Line
1-800-345-8765
 
Investor Services Representative
1-800-345-2021
or 816-531-5575
 
Investors Using Advisors
1-800-378-9878
 
Business, Not-For-Profit, Employer-Sponsored Retirement Plans
1-800-345-3533
 
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies
1-800-345-6488
 
Telecommunications Relay Service for the Deaf
711
 
 
 
 
American Century Capital Portfolios, Inc.
 
 
 
 
Investment Advisor:
American Century Investment Management, Inc.
Kansas City, Missouri
 
 
 
 
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
 
 
 
 
©2019 American Century Proprietary Holdings, Inc. All rights reserved.
CL-ANN-92271 1905
 





acihorizblkd42.jpg
                  

 
 
 
Annual Report
 
 
 
March 31, 2019
 
 
 
NT Large Company Value Fund
 
G Class (ACLLX)


























Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.

You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.





Table of Contents
Performance
2

Portfolio Commentary

Fund Characteristics

Shareholder Fee Example

Schedule of Investments

Statement of Assets and Liabilities

Statement of Operations

Statement of Changes in Net Assets

Notes to Financial Statements

Financial Highlights

Report of Independent Registered Public Accounting Firm

Management

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.


Performance
 
Total Returns as of March 31, 2019
 
 
 
Average Annual Returns
 
 
Ticker
Symbol
1 year
5 years
10 years
Inception
Date
G Class
ACLLX
7.02%
7.10%
13.40%
5/12/06
Russell 1000 Value Index
—
5.67%
7.72%
14.51%
—
S&P 500 Index
—
9.50%
10.90%
15.91%
—
Fund returns would have been lower if a portion of the fees had not been waived.

Growth of $10,000 Over 10 Years
$10,000 investment made March 31, 2009
chart-59ecd3b23bd05baa935.jpg
Value on March 31, 2019
 
G Class — $35,186
 
 
Russell 1000 Value Index — $38,803
 
 
S&P 500 Index — $43,809
 
Ending value of G Class would have been lower if a portion of the fees had not been waived.
Total Annual Fund Operating Expenses 
G Class
0.49%
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.




Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

2

Portfolio Commentary
 

Portfolio Managers: Brian Woglom and Phil Davidson

Effective April 2019, portfolio manager Phil Sundell will join the fund's management team.

Performance Summary

NT Large Company Value returned 7.02%* for the 12-month period ended March 31, 2019. The fund’s benchmark, the Russell 1000 Value Index, returned 5.67%. The fund’s return reflects operating expenses, while the index’s return does not.

The fund’s holdings in the consumer staples, health care and consumer discretionary sectors were among the key drivers of relative performance. The fund’s overweight to the health care sector was also beneficial. On the other hand, stock selection in energy, underweights to the real estate and utilities sectors and holdings in the materials and financials sectors detracted from relative results.

Consumer Staples, Health Care and Consumer Discretionary Contributed

Holdings in the consumer staples sector positively impacted relative performance, including Procter & Gamble. This large consumer packaged goods company posted its highest organic growth rate in nearly five years, benefiting from recent investments in product enhancements and product pricing. Importantly, Procter & Gamble is stabilizing and improving market share in many key products.

Our portfolio’s overweight in health care aided performance. Additionally, several of our health care holdings outperformed during the trailing 12-month period, including pharmaceutical companies Merck & Co. and Pfizer. Merck outperformed after it reported solid financial results, raised its dividend and announced a share buyback. Also, competitor AstraZeneca announced a lung cancer trial failure, which cemented Merck’s dominance in the lung cancer space with its drug, Keytruda. Pfizer’s stock was supported by solid data on Tafamidis, its cardiomyopathy drug, and by its generally strong drug pipeline.

Consumer discretionary holding Advance Auto Parts was another top individual contributor. This retailer of aftermarket replacement parts is a market share leader in a higher-quality industry. Extreme winter storms in the Northeastern U.S. helped drive better-than-expected results for the company. Advance Auto Parts also raised its full-year guidance due to margin improvement and stronger-than-expected same-store sales trends. This indicated to investors that the company’s turnaround plan is starting to show signs of effectiveness.

While overall stock selection in the energy sector weighed on performance, Occidental Petroleum was a notable contributor. The stock of this large integrated energy company appreciated meaningfully as its management team executed on its plans to restore profitability to Occidental’s upstream business. We exited the position on strength in the stock price.

Energy, Real Estate, Materials and Utilities Detracted

A few of our energy holdings were key detractors from relative performance, including Schlumberger. The recovery in the oil field services markets has perpetually disappointed investors. In particular, the non-U.S. oil field services markets, a historic stronghold for Schlumberger, have failed to stage a meaningful recovery. As a result, industry participants have been bidding contracts aggressively in an attempt to maintain operations, which has weighed on the revenue growth and profitability of Schlumberger and its peers. We still think Schlumberger is

*Fund returns would have been lower if a portion of the fees had not been waived.

3

the best oil field services company, and we continue to hold the stock as of period-end. Noble Energy was another detractor. Its stock fell significantly during the second half of 2018 as lower commodity prices weighed on the free cash flow and return on invested capital potential of the business.

Our underweights to the real estate and utilities sectors also negatively impacted relative results. These underweights were the result of our bottom-up investment approach; our metrics indicated that many stocks in these sectors remained overvalued throughout the trailing 12-month period. Despite these generally inflated valuations, investors favored the more defensive utilities sector as the market declined in the fourth quarter of 2018. Furthermore, a decline in interest rates in the first quarter of 2019 helped propel stocks in the real estate sector.

Within the materials sector, our position in WestRock, a paper and packaging company, weighed on the fund’s performance. The stock underperformed due to worries that containerboard pricing and demand have peaked. Also, the company’s decision to acquire a smaller competitor raised concerns about the company’s debt load.

Furthermore, asset manager Invesco was a top detractor from performance. Invesco underperformed due to weaker equity markets in 2018, an acceleration of net outflows and on news of its expensive acquisition of OppenheimerFunds.

Portfolio Positioning

The portfolio seeks to invest in companies where we believe the valuation does not reflect the quality and normal earnings power of the company. Our process is based on individual security selection, but broad themes have emerged.

As of March 31, 2019, our portfolio is overweight in the health care and consumer staples sectors. According to our analysis, the portfolio’s health care holdings offer compelling valuations and
risk/reward profiles, particularly in the pharmaceuticals and health care equipment and supplies industries. The consumer staples sector is comprised of companies with diverging strategies and fundamental outlooks. We believe we have identified some of the more diversified, stronger companies with better balance sheets to help navigate a tougher competitive environment.

Conversely, the portfolio is underweight in communication services and real estate. As of
period-end, our only position in the communication services sector is Verizon Communications. We believe Verizon offers relative stability and balance sheet strength. Our analysis shows that many other communication services stocks have volatile business models and higher levels of leverage. Additionally, because it has been difficult for us to find higher-quality real estate stocks selling at attractive valuations, Weyerhaeuser is our only real estate holding as of the end of the reporting period.






4

Fund Characteristics 
MARCH 31, 2019
Top Ten Holdings
% of net assets
Johnson & Johnson
3.7%
JPMorgan Chase & Co.
3.6%
Medtronic plc
3.3%
U.S. Bancorp
3.1%
Verizon Communications, Inc.
3.1%
TOTAL SA ADR
3.0%
Chevron Corp.
2.8%
iShares Russell 1000 Value ETF
2.8%
Intel Corp.
2.7%
Pfizer, Inc.
2.6%
 
 
Top Five Industries
% of net assets
Banks
13.9%
Pharmaceuticals
8.5%
Oil, Gas and Consumable Fuels
8.2%
Health Care Equipment and Supplies
6.5%
Capital Markets
4.8%
 
 
Types of Investments in Portfolio
% of net assets
Domestic Common Stocks
86.3%
Foreign Common Stocks*
7.8%
Exchange-Traded Funds
2.8%
Total Equity Exposure
96.9%
Temporary Cash Investments
2.8%
Other Assets and Liabilities
0.3%
*Includes depositary shares, dual listed securities and foreign ordinary shares.





5

Shareholder Fee Example 

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.

The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from October 1, 2018 to March 31, 2019.

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
10/1/18
Ending
Account Value
3/31/19
Expenses Paid
During Period(1)
10/1/18 - 3/31/19
 
Annualized
Expense Ratio(1)(2)
Actual
 
 
 
 
G Class
$1,000
$990.30
$0.00
0.00%
Hypothetical
 
 
 
 
G Class
$1,000
$1,024.93
$0.00
0.00%
(1)
Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any underlying fund fees and expenses.
(2)
Other expenses, which include directors' fees and expenses, did not exceed 0.005%.

6

Schedule of Investments

MARCH 31, 2019
 
Shares
Value
COMMON STOCKS — 94.1%
 
 
Air Freight and Logistics — 1.0%
 
 
United Parcel Service, Inc., Class B
144,000

$
16,090,560

Airlines — 1.2%
 
 
Southwest Airlines Co.
361,700

18,775,847

Auto Components — 0.7%
 
 
BorgWarner, Inc.
313,200

12,030,012

Automobiles — 1.0%
 
 
Honda Motor Co. Ltd. ADR
573,500

15,581,995

Banks — 13.9%
 
 
Bank of America Corp.
681,900

18,813,621

BB&T Corp.
860,100

40,020,453

JPMorgan Chase & Co.
569,800

57,680,854

PNC Financial Services Group, Inc. (The)
310,100

38,036,866

U.S. Bancorp
1,058,000

50,985,020

Wells Fargo & Co.
402,000

19,424,640

 
 
224,961,454

Beverages — 1.3%
 
 
PepsiCo, Inc.
176,300

21,605,565

Building Products — 1.3%
 
 
Johnson Controls International plc
588,500

21,739,190

Capital Markets — 4.8%
 
 
Ameriprise Financial, Inc.
186,900

23,941,890

Bank of New York Mellon Corp. (The)
673,500

33,964,605

Invesco Ltd.
1,029,700

19,883,507

 
 
77,790,002

Chemicals — 0.8%
 
 
Dow, Inc.(1)(2) 
14,701

758,995

DowDuPont, Inc.
345,100

12,447,757

 
 
13,206,752

Communications Equipment — 1.5%
 
 
Cisco Systems, Inc.
449,200

24,252,308

Containers and Packaging — 0.7%
 
 
WestRock Co.
305,400

11,712,090

Diversified Telecommunication Services — 3.1%
 
 
Verizon Communications, Inc.
846,800

50,071,284

Electric Utilities — 3.9%
 
 
Eversource Energy
297,300

21,093,435

Pinnacle West Capital Corp.
177,600

16,975,008

Xcel Energy, Inc.
457,700

25,727,317

 
 
63,795,760

Electrical Equipment — 1.9%
 
 
Eaton Corp. plc
208,400

16,788,704


7

 
Shares
Value
Emerson Electric Co.
212,400

$
14,543,028

 
 
31,331,732

Electronic Equipment, Instruments and Components — 1.3%
TE Connectivity Ltd.
258,000

20,833,500

Energy Equipment and Services — 2.9%
 
 
Baker Hughes a GE Co.
577,600

16,011,072

Schlumberger Ltd.
727,200

31,684,104

 
 
47,695,176

Equity Real Estate Investment Trusts (REITs) — 1.4%
Weyerhaeuser Co.
884,300

23,292,462

Food and Staples Retailing — 1.5%
 
 
Sysco Corp.
185,000

12,350,600

Walmart, Inc.
114,000

11,118,420

 
 
23,469,020

Food Products — 3.3%
 
 
Conagra Brands, Inc.
440,400

12,216,696

Kellogg Co.
137,400

7,884,012

Mondelez International, Inc., Class A
658,000

32,847,360

 
 
52,948,068

Health Care Equipment and Supplies — 6.5%
 
 
Hologic, Inc.(2) 
276,700

13,392,280

Medtronic plc
591,000

53,828,280

Zimmer Biomet Holdings, Inc.
299,000

38,182,300

 
 
105,402,860

Health Care Providers and Services — 2.2%
 
 
McKesson Corp.
117,700

13,777,962

Quest Diagnostics, Inc.
241,800

21,742,656

 
 
35,520,618

Health Care Technology — 1.1%
 
 
Cerner Corp.(2) 
313,200

17,918,172

Hotels, Restaurants and Leisure — 0.6%
 
 
Carnival Corp.
191,300

9,702,736

Household Durables — 0.5%
 
 
PulteGroup, Inc.
294,000

8,220,240

Household Products — 3.6%
 
 
Colgate-Palmolive Co.
261,600

17,930,064

Procter & Gamble Co. (The)
396,700

41,276,635

 
 
59,206,699

Industrial Conglomerates — 1.1%
 
 
Siemens AG
164,100

17,660,561

Insurance — 3.5%
 
 
Aflac, Inc.
337,600

16,880,000

Chubb Ltd.
284,800

39,894,784

 
 
56,774,784

Machinery — 2.7%
 
 
Atlas Copco AB, B Shares
914,000

22,620,696


8

 
Shares
Value
Cummins, Inc.
129,200

$
20,396,804

 
 
43,017,500

Multiline Retail — 0.5%
 
 
Target Corp.
102,400

8,218,624

Oil, Gas and Consumable Fuels — 8.2%
 
 
Anadarko Petroleum Corp.
210,600

9,578,088

Chevron Corp.
367,400

45,256,332

EQT Corp.
321,700

6,672,058

Equitrans Midstream Corp.
249,800

5,440,644

Noble Energy, Inc.
321,400

7,948,222

Royal Dutch Shell plc, Class B ADR
169,200

10,820,340

TOTAL SA ADR
865,000

48,137,250

 
 
133,852,934

Personal Products — 0.7%
 
 
Unilever NV CVA
186,400

10,826,901

Pharmaceuticals — 8.5%
 
 
Allergan plc
85,000

12,444,850

Johnson & Johnson
426,500

59,620,434

Merck & Co., Inc.
291,700

24,260,689

Pfizer, Inc.
992,300

42,142,981

 
 
138,468,954

Road and Rail — 0.5%
 
 
Union Pacific Corp.
51,000

8,527,200

Semiconductors and Semiconductor Equipment — 3.6%
Applied Materials, Inc.
397,900

15,780,714

Intel Corp.
808,400

43,411,080

 
 
59,191,794

Software — 1.5%
 
 
Oracle Corp. (New York)
444,800

23,890,208

Specialty Retail — 0.9%
 
 
Advance Auto Parts, Inc.
86,600

14,767,898

Technology Hardware, Storage and Peripherals — 0.4%
Apple, Inc.
37,700

7,161,115

TOTAL COMMON STOCKS
(Cost $1,266,507,640)
 
1,529,512,575

EXCHANGE-TRADED FUNDS — 2.8%
 
 
iShares Russell 1000 Value ETF
(Cost $43,249,477)
364,200

44,975,058

TEMPORARY CASH INVESTMENTS — 2.8%
 
 
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.125% - 2.875%, 9/30/19 - 2/15/44, valued at $40,204,776), in a joint trading account at 2.35%, dated 3/29/19, due 4/1/19 (Delivery value $39,409,339)
 
39,401,623

Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.50%, 8/15/23, valued at $6,721,432), at 1.25%, dated 3/29/19, due 4/1/19 (Delivery value $6,586,686)
 
6,586,000


9

 
Shares
Value
State Street Institutional U.S. Government Money Market Fund, Premier Class
20,780

$
20,780

TOTAL TEMPORARY CASH INVESTMENTS
(Cost $46,008,403)
 
46,008,403

TOTAL INVESTMENT SECURITIES — 99.7%
(Cost $1,355,765,520)
 
1,620,496,036

OTHER ASSETS AND LIABILITIES — 0.3%
 
4,151,844

TOTAL NET ASSETS — 100.0%
 
$
1,624,647,880


FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Currency Purchased
Currency Sold
Counterparty
Settlement Date
Unrealized Appreciation
(Depreciation)
EUR
1,484,964

USD
1,688,758

Credit Suisse AG
6/28/19
$
(10,728
)
USD
66,005,801

EUR
57,853,137

Credit Suisse AG
6/28/19
630,989

USD
1,706,830

EUR
1,509,924

Credit Suisse AG
6/28/19
596

USD
9,254,686

GBP
6,981,776

JPMorgan Chase Bank N.A.
6/28/19
121,854

JPY
41,484,211

USD
378,228

Bank of America N.A.
6/28/19
(1,371
)
JPY
36,713,312

USD
333,688

Bank of America N.A.
6/28/19
(172
)
USD
14,103,455

JPY
1,541,528,740

Bank of America N.A.
6/28/19
99,674

SEK
4,405,708

USD
477,502

Goldman Sachs & Co.
6/28/19
(533
)
USD
18,677,130

SEK
171,265,548

Goldman Sachs & Co.
6/28/19
135,645

 
 
 
 
 
 
$
975,954


NOTES TO SCHEDULE OF INVESTMENTS
ADR
-
American Depositary Receipt
CVA
-
Certificaten Van Aandelen
EUR
-
Euro
GBP
-
British Pound
JPY
-
Japanese Yen
SEK
-
Swedish Krona
USD
-
United States Dollar
(1)
When-issued security. The issue price and yield are fixed on the date of the commitment, but payment and delivery are scheduled for a future date.
(2)
Non-income producing.

See Notes to Financial Statements.


10

Statement of Assets and Liabilities
MARCH 31, 2019
 
Assets
 
Investment securities, at value (cost of $1,355,765,520)
$
1,620,496,036

Receivable for investments sold
9,971,303

Unrealized appreciation on forward foreign currency exchange contracts
988,758

Dividends and interest receivable
2,959,610

 
1,634,415,707

 
 
Liabilities
 
Payable for investments purchased
9,741,755

Payable for capital shares redeemed
13,268

Unrealized depreciation on forward foreign currency exchange contracts
12,804

 
9,767,827

 
 
Net Assets
$
1,624,647,880

 
 
G Class Capital Shares, $0.01 Par Value
 
Shares authorized
1,200,000,000

Shares outstanding
150,987,511

 
 
Net Asset Value Per Share
$
10.76

 
 
Net Assets Consist of:
 
Capital (par value and paid-in surplus)
$
1,401,496,111

Distributable earnings
223,151,769

 
$
1,624,647,880



See Notes to Financial Statements.


11

Statement of Operations
YEAR ENDED MARCH 31, 2019
 
Investment Income (Loss)
 
Income:
 
Dividends (net of foreign taxes withheld of $550,398)
$
46,081,029

Interest
517,358

 
46,598,387

 
 
Expenses:
 
Management fees
8,412,918

Directors' fees and expenses
49,249

Other expenses
27,035

 
8,489,202

Fees waived
(8,412,918
)
 
76,284

 
 
Net investment income (loss)
46,522,103

 
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) on:
 
Investment transactions
68,241,025

Forward foreign currency exchange contract transactions
12,818,231

Foreign currency translation transactions
(29,599
)
 
81,029,657

 
 
Change in net unrealized appreciation (depreciation) on:
 
Investments
(2,944,465
)
Forward foreign currency exchange contracts
915,665

Translation of assets and liabilities in foreign currencies
(6,616
)
 
(2,035,416
)
 
 
Net realized and unrealized gain (loss)
78,994,241

 
 
Net Increase (Decrease) in Net Assets Resulting from Operations
$
125,516,344



See Notes to Financial Statements.


12

Statement of Changes in Net Assets
YEARS ENDED MARCH 31, 2019 AND MARCH 31, 2018
Increase (Decrease) in Net Assets
March 31, 2019
March 31, 2018
Operations
 
 
Net investment income (loss)
$
46,522,103

$
52,692,019

Net realized gain (loss)
81,029,657

96,409,995

Change in net unrealized appreciation (depreciation)
(2,035,416
)
(62,140,801
)
Net increase (decrease) in net assets resulting from operations
125,516,344

86,961,213

 
 
 
Distributions to Shareholders
 
 
From earnings:(1)
 
 
G Class
(163,394,016
)
(195,765,168
)
R6 Class
—

(1,038,414
)
Decrease in net assets from distributions
(163,394,016
)
(196,803,582
)
 
 
 
Capital Share Transactions
 
 
Net increase (decrease) in net assets from capital share transactions (Note 5)
(223,801,927
)
89,662,460

 
 
 
Net increase (decrease) in net assets
(261,679,599
)
(20,179,909
)
 
 
 
Net Assets
 
 
Beginning of period
1,886,327,479

1,906,507,388

End of period
$
1,624,647,880

$
1,886,327,479


(1)
Prior period presentation has been updated to reflect the current period combination of distributions to shareholders from net investment income and net realized gains. Distributions from net investment income were $(49,067,307) and $(1,038,414) for G Class and R6 Class, respectively. Distributions from net realized gains were $(146,697,861) for G Class.


See Notes to Financial Statements.


13

Notes to Financial Statements

MARCH 31, 2019

1. Organization

American Century Capital Portfolios, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. NT Large Company 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. Income is a secondary objective. The fund is not permitted to invest in securities issued by companies assigned the Global Industry Classification Standard or the Bloomberg Industry Classification Standard for the tobacco industry. The fund offers the G Class. On July 31, 2017, all outstanding R6 Class shares were converted to G Class shares and the fund discontinued offering the R6 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 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 net asset value per share. Repurchase agreements are valued at cost, which approximates fair value. Forward foreign currency exchange contracts are valued at the mean of the appropriate forward exchange rate at the close of the NYSE as provided by an independent pricing service.
 
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
 
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value 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

14

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. If significant fluctuations in foreign markets are identified, 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.
 
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, if any, are generally declared and paid quarterly. Distributions from net realized gains, if any, are generally declared and paid annually.
 
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.

15

3. Fees and Transactions with Related Parties

Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc., 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, 100% 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 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, will be paid by ACIM. 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 Large Company Value Fund, one fund in a series issued by the corporation. The management fee schedule ranges from 0.35% to 0.55%. 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 March 31, 2019 was 0.48% 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 purchases and sales were $18,573,655 and $64,198,752, respectively. The effect of interfund transactions on the Statement of Operations was $(2,665,314) 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 March 31, 2019 were $967,160,218 and $1,309,700,674, respectively.

5. Capital Share Transactions

Transactions in shares of the fund were as follows:
 
Year ended
March 31, 2019
Year ended
March 31, 2018
 
Shares
Amount
Shares
Amount
G Class/Shares Authorized
1,200,000,000

 
920,000,000

 
Sold
9,170,897

$
96,025,056

36,358,869

$
431,890,150

Issued in reinvestment of distributions
15,707,058

163,394,016

16,806,758

195,765,168

Redeemed
(42,728,213
)
(483,220,999
)
(27,835,044
)
(332,586,166
)
 
(17,850,258
)
(223,801,927
)
25,330,583

295,069,152

R6 Class/Shares Authorized
N/A

 
N/A

 
Sold
 
 
2,076,788

24,637,192

Issued in reinvestment of distributions
 
 
87,042

1,038,414

Redeemed
 
 
(19,287,096
)
(231,082,298
)
 
 
 
(17,123,266
)
(205,406,692
)
Net increase (decrease)
(17,850,258
)
$
(223,801,927
)
8,207,317

$
89,662,460


16

6. Fair Value Measurements

The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.

•
Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.

•
Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.

•
Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).

The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
 
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
 
Level 1
Level 2
Level 3
Assets
 
 
 
Investment Securities
 
 
 
Common Stocks
$
1,478,404,417

$
51,108,158

—

Exchange-Traded Funds
44,975,058

—

—

Temporary Cash Investments
20,780

45,987,623

—

 
$
1,523,400,255

$
97,095,781

—

Other Financial Instruments
 
 
 
Forward Foreign Currency Exchange Contracts
—

$
988,758

—

 
 
 
 
Liabilities
 
 
 
Other Financial Instruments
 
 
 
Forward Foreign Currency Exchange Contracts
—

$
12,804

—


7. Derivative Instruments

Foreign Currency Risk — The fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The value of foreign investments held by a fund may be significantly affected by changes in foreign currency exchange rates. The dollar value of a foreign security generally decreases when the value of the dollar rises against the foreign currency in which the security is denominated and tends to increase when the value of the dollar declines against such foreign currency. A fund may enter into forward foreign currency exchange contracts to reduce a fund's exposure to foreign currency exchange rate fluctuations. The net U.S. dollar value of foreign currency underlying all contractual commitments held by a fund and the resulting unrealized appreciation or depreciation are determined daily. Realized gain or loss is recorded upon the termination of the contract. Net realized and unrealized gains or losses occurring during the holding period of forward foreign currency exchange contracts are a component of net realized gain (loss) on forward foreign currency exchange contract transactions and change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts, respectively. A fund bears the risk of an unfavorable change in the foreign currency exchange rate underlying the forward contract. Additionally, losses, up to the fair value, may arise if the counterparties do not perform under the contract terms. The fund's average U.S. dollar exposure to foreign currency risk derivative instruments held during the period was $140,434,096.
 
The value of foreign currency risk derivative instruments as of March 31, 2019, is disclosed on the Statement of Assets and Liabilities as an asset of $988,758 in unrealized appreciation on forward foreign currency

17

exchange contracts and a liability of $12,804 in unrealized depreciation on forward foreign currency exchange contracts. For the year ended March 31, 2019, the effect of foreign currency risk derivative instruments on the Statement of Operations was $12,818,231 in net realized gain (loss) on forward foreign currency exchange contract transactions and $915,665 in change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts.

8. Risk Factors

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.

9. Federal Tax Information

The tax character of distributions paid during the years ended March 31, 2019 and March 31, 2018 were as follows:
 
2019
2018
Distributions Paid From
 
 
Ordinary income
$
47,275,451

$
71,510,035

Long-term capital gains
$
116,118,565

$
125,293,547


The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
 
As of period end, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments
$
1,397,617,028

Gross tax appreciation of investments
$
269,834,829

Gross tax depreciation of investments
(46,955,821
)
Net tax appreciation (depreciation) of investments
222,879,008

Net tax appreciation (depreciation) on derivatives and translation of assets and liabilities in foreign currencies
(7,453
)
Net tax appreciation (depreciation)
$
222,871,555

Undistributed ordinary income
$
2,545,458

Post-October capital loss deferral
$
(2,265,244
)

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
 
Loss deferrals 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.


18

Financial Highlights
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
Per-Share Data
Ratios and Supplemental Data
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment
Income
(Loss)(1)
Net
Realized
and
Unrealized
Gain (Loss)
Total From
Investment
Operations
Net
Investment
Income
Net
Realized
Gains
Total
Distributions
Net Asset
Value,
End of
Period
Total
Return(2)
Operating
Expenses
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
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$11.17
0.30
0.41
0.71
(0.30)
(0.82)
(1.12)
$10.76
7.02%
0.00%(3)
0.48%
2.64%
2.16%
56%

$1,624,648

2018
$11.87
0.32
0.21
0.53
(0.30)
(0.93)
(1.23)
$11.17
4.23%
0.20%
0.53%
2.68%
2.35%
57%

$1,886,327

2017
$10.58
0.25
1.80
2.05
(0.24)
(0.52)
(0.76)
$11.87
19.67%
0.63%
0.63%
2.17%
2.17%
79%

$1,703,216

2016
$12.38
0.18
(0.78)
(0.60)
(0.18)
(1.02)
(1.20)
$10.58
(4.92)%
0.64%
0.64%
1.57%
1.57%
61%

$1,531,294

2015
$12.18
0.19
1.14
1.33
(0.18)
(0.95)
(1.13)
$12.38
11.01%
0.64%
0.64%
1.52%
1.52%
68%

$1,391,730

Notes to Financial Highlights
(1)
Computed using average shares outstanding throughout the period.
(2)
Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized.
(3)
Ratio was less than 0.005%.
See Notes to Financial Statements.


Report of Independent Registered Public Accounting Firm

To the shareholders and the Board of Directors of American Century Capital Portfolios, Inc.:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of NT Large Company Value Fund, one of the portfolios constituting the American Century Capital Portfolios, Inc. (the “Fund”), as of March 31, 2019, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of NT Large Company Value Fund of the American Century Capital Portfolios, Inc. as of March 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
DELOITTE & TOUCHE LLP

Kansas City, Missouri
May 16, 2019

We have served as the auditor of one or more American Century investment companies since 1997.

20

Management

The Board of Directors

The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire by December 31 of the year in which they reach their 75th birthday.
Mr. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Director
Other Directorships Held During Past 5 Years
Independent Directors


Thomas W. Bunn (1953)
Director
Since 2017
Retired
67
SquareTwo Financial; Barings (formerly Babson Capital Funds Trust) (2013 to 2016)
Chris H. Cheesman
(1962)
Director
Since 2019
Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018)
67
None
Barry Fink
(1955)
Director
Since 2012 (independent since 2016)
Retired
67
None
Rajesh K. Gupta
(1960)
Director
Since 2019
Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to Present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019)
67
None


21

Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Director
Other Directorships Held During Past 5 Years
Independent Directors


Lynn Jenkins
(1963)
Director
Since 2019
United States Representative, U.S. House of Representatives (2009 to 2018)
67
MGP Ingredients, Inc.
Jan M. Lewis
(1957)
Director
Since 2011
Retired
67
None
John R. Whitten
(1946)
Director
Since 2008
Retired
67
Rudolph Technologies, Inc.
Stephen E. Yates
(1948)
Director and Chairman of the Board
Since 2012 (Chairman since 2018)
Retired
72
None
Interested Director


Jonathan S. Thomas
(1963)
Director and President
Since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
117
BioMed Valley Discoveries, Inc.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.

22

Officers

The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for 16 (in the case of Robert J. Leach, 15) investment companies in the American Century family of funds, unless otherwise noted. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Offices with the Funds
Principal Occupation(s) During the Past Five Years
Jonathan S. Thomas
(1963)
Director and President since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
R. Wes Campbell
(1974)
Chief Financial Officer and Treasurer since 2018
Investment Operations and Investment Accounting, ACS (2000 to present)
Amy D. Shelton
(1964)
Chief Compliance Officer and Vice President since 2014
Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present); Vice President, Client Interactions and Marketing, ACIS (2013 to 2014). Also serves as Vice President, ACIS
Charles A. Etherington
(1957)
General Counsel since 2007 and Senior Vice President since 2006
Attorney, ACC (1994 to present); Vice President, ACC (2005 to present); General Counsel, ACC (2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS
C. Jean Wade
(1964)
Vice President since 2012
Senior Vice President, ACS (2017 to present); Vice President, ACS (2000 to 2017)
Robert J. Leach
(1966)
Vice President since 2006
Vice President, ACS (2000 to present)
David H. Reinmiller
(1963)
Vice President since 2000
Attorney, ACC (1994 to present). Also serves as Vice President, ACIM and ACS
Ward D. Stauffer
(1960)
Secretary since 2005
Attorney, ACC (2003 to present)





23

Additional Information

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 the "About Us" page of American Century Investments’ website at americancentury.com and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.


Quarterly Portfolio Disclosure

The 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 on Form N-Q or as an exhibit to its reports on Form N-PORT. The fund’s Forms N-Q and Form N-PORT reports are available on the SEC’s website at sec.gov. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.

24

Other Tax Information

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund hereby designates up to the maximum amount allowable as qualified dividend income for the fiscal year ended March 31, 2019.

For corporate taxpayers, the fund hereby designates $33,081,092, or up to the maximum amount allowable, of ordinary income distributions paid during the fiscal year ended March 31, 2019 as qualified for the corporate dividends received deduction.

The fund hereby designates $116,118,565, or up to the maximum amount allowable, as long-term capital gain distributions (20% rate gain distributions) for the fiscal year ended March 31, 2019.

The fund hereby designates $5,907 as qualified short-term capital gain distributions for purposes of Internal Revenue Code Section 871 for the fiscal year ended March 31, 2019.

25

Notes

26

Notes

27

Notes


28




acihorizblkd42.jpg
 
 
 
 
Contact Us
americancentury.com
 
Automated Information Line
1-800-345-8765
 
Investor Services Representative
1-800-345-2021
or 816-531-5575
 
Investors Using Advisors
1-800-378-9878
 
Business, Not-For-Profit, Employer-Sponsored Retirement Plans
1-800-345-3533
 
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies
1-800-345-6488
 
Telecommunications Relay Service for the Deaf
711
 
 
 
 
American Century Capital Portfolios, Inc.
 
 
 
 
Investment Advisor:
American Century Investment Management, Inc.
Kansas City, Missouri
 
 
 
 
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
 
 
 
 
©2019 American Century Proprietary Holdings, Inc. All rights reserved.
CL-ANN-92290 1905
 





acihorizblkd42.jpg
                  

 
 
 
Annual Report
 
 
 
March 31, 2019
 
 
 
NT Mid Cap Value Fund
 
G Class (ACLMX)











Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.

You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.





Table of Contents
Performance
2

Portfolio Commentary

Fund Characteristics

Shareholder Fee Example

Schedule of Investments

Statement of Assets and Liabilities

Statement of Operations

Statement of Changes in Net Assets

Notes to Financial Statements

Financial Highlights

Report of Independent Registered Public Accounting Firm

Management

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.


Performance
 
Total Returns as of March 31, 2019
 
 
 
Average Annual Returns
 
 
Ticker
Symbol
1 year
5 years
10 years
Inception
Date
G Class
ACLMX
1.87%
8.82%
15.65%
5/12/06
Russell Midcap Value Index
—
2.89%
7.21%
16.38%
—
Fund returns would have been lower if a portion of the fees had not been waived.

Growth of $10,000 Over 10 Years
$10,000 investment made March 31, 2009
 
chart-932cde90d5405d41bd7.jpg
Value on March 31, 2019
 
G Class — $42,852
 
 
Russell Midcap Value Index — $45,626
 
Ending value of G Class would have been lower if a portion of the fees had not been waived.

Total Annual Fund Operating Expenses
G Class
0.66%
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.


Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

2

Portfolio Commentary
 

Portfolio Managers: Kevin Toney, Michael Liss, Phil Davidson and Brian Woglom

Performance Summary

NT Mid Cap Value returned 1.87%* for the 12-month period ended March 31, 2019. The fund’s benchmark, the Russell Midcap Value Index, returned 2.89%. The fund’s return reflects operating expenses, while the index’s return does not.

The fund’s underweight and stock selection in the real estate sector detracted from relative performance. Information technology and energy were other areas of weakness. On the other hand, stock selection and our underweight in the consumer discretionary sector contributed positively to relative results. Holdings in the industrials, health care and utilities sectors were also beneficial to performance.

Real Estate, Information Technology and Energy Detracted

Throughout the year, we remained underweight in the real estate sector given our belief that valuations throughout the sector were generally extended. This sector underweight detracted from relative performance. Furthermore, our position in Weyerhaeuser, a large private owner of timberlands, negatively impacted results. The stock was pressured by a decline in timber pricing.

In the information technology sector, several holdings in the semiconductors and semiconductor equipment industry detracted from performance due to fears of capital spending declines in the memory chip market. Our underweight in the information technology sector, stemming largely from our lack of exposure to the software and information technology services industries, also weighed on performance.

A decline in the price of oil during the fourth quarter of 2018 pressured our energy holdings, including Cimarex Energy. Cimarex’s stock was also hurt by fiscal 2018 production guidance that came in below expectations. Furthermore, due to pipeline constraints, investors became concerned about the company’s ability to efficiently transport oil out of the Permian Basin. We believe those concerns were overstated and maintained a position in the company. EQT, a natural gas exploration and pipeline company, was another top detractor. The company provided disappointing guidance for cash flows in 2019 and faced challenges with the integration of assets from Rice Energy, a company that EQT acquired in late 2017.

Within the consumer staples sector, Orkla and Conagra Brands detracted from relative performance. Orkla’s stock was pressured by disappointing financial results, driven by higher food inflation and currency headwinds. However, we believe these issues are transitory and Orkla’s underlying business remains strong. Conagra underperformed due to lowered guidance on its recent acquisition of Pinnacle Foods. Conagra highlighted Pinnacle’s weak new product innovation and stated that improvement may not occur until the second half of 2019.

Financials stock Invesco was another top detractor. The asset manager underperformed due to weaker equity markets in 2018, an acceleration of net outflows and on news of its expensive acquisition of OppenheimerFunds. Paper and packaging company WestRock also underperformed due to worries that containerboard pricing and demand have peaked. Additionally, the company’s decision to acquire a smaller competitor raised concerns about the company’s debt load.



*Fund returns would have been lower if a portion of the fees had not been waived.


3

Consumer Discretionary, Industrials, Health Care and Utilities Contributed Positively

Consumer discretionary holding Advance Auto Parts was a key contributor. This retailer of aftermarket automotive replacement parts is a market share leader in a higher-quality industry. The company reported several quarters of strong results and raised its full-year guidance due to margin improvement and stronger-than-expected same-store sales trends. This news indicated to investors that the company’s turnaround plan is starting to show signs of effectiveness. Our underweight to the consumer discretionary sector was also beneficial, as many consumer discretionary stocks lagged due in part to trade tensions and investors’ concerns about a slowing global economy.

Industrials and health care were also areas of strength. Stock selection in industrials positively impacted performance, particularly within the building products industry. Our position in Johnson Controls International outperformed on speculation of a separation of the company’s buildings and battery businesses as well as better operating trends and execution. In the health care sector, hospital company LifePoint Health was a top contributor. The company outperformed on news that it would be acquired for a significant premium by Apollo Global Management, a private equity firm. We eliminated LifePoint following its strong performance.

In the utilities sector, NorthWestern was a top contributor. This utility stock benefited from better-than-expected regulatory developments in proceedings in Montana and from declining longer-term interest rates. Additionally, we believe the Montana Public Service Commission should be more agreeable as the makeup of the commission changed at the end of 2018. Xcel Energy also positively impacted relative returns as the company increased its long-term growth and capital spending outlook. Like other utilities, the stock also benefited from the decline in longer-term interest rates and economic uncertainty.

Portfolio Positioning

The portfolio seeks to invest in companies where we believe the valuation does not reflect the quality and normal earnings power of the company. Our process is based on individual security selection, but broad themes have emerged.

As of March 31, 2019, the portfolio is overweight in financials. Using our bottom-up investment approach, we have identified stocks that we believe offer attractive risk/reward profiles, particularly in the capital markets and banking industries. We are also overweight in industrials. Our analysis has led us to attractive companies within this fragmented sector, and we have avoided industrials that we believe are lower quality.

On the other hand, we ended the reporting period with a notable underweight in real estate. Our metrics show that valuations throughout the real estate sector are extended. As a result, we have only identified a few higher-quality real estate stocks with compelling valuations. The portfolio is also underweight in information technology. We believe valuations throughout the sector are generally less attractive following the sector’s strong performance during the first quarter of 2019.


4

Fund Characteristics 
 
MARCH 31, 2019
Top Ten Holdings
% of net assets
iShares Russell Mid-Cap Value ETF
3.0%
Northern Trust Corp.
3.0%
Zimmer Biomet Holdings, Inc.
3.0%
Hubbell, Inc.
2.6%
BB&T Corp.
2.1%
Xcel Energy, Inc.
1.9%
Weyerhaeuser Co.
1.9%
Johnson Controls International plc
1.7%
Chubb Ltd.
1.5%
Southwest Airlines Co.
1.5%
 
 
Top Five Industries
% of net assets
Banks
9.3%
Capital Markets
6.7%
Electrical Equipment
6.6%
Oil, Gas and Consumable Fuels
5.2%
Insurance
5.1%
 
 
Types of Investments in Portfolio
% of net assets
Domestic Common Stocks
87.1%
Foreign Common Stocks*
6.9%
Exchange-Traded Funds
3.0%
Total Equity Exposure
97.0%
Temporary Cash Investments
2.8%
Other Assets and Liabilities
0.2%
*Includes depositary shares, dual listed securities and foreign ordinary shares.


5

Shareholder Fee Example

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.

The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from October 1, 2018 to March 31, 2019.

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
10/1/18
Ending
Account Value
3/31/19
Expenses Paid
During Period(1) 
10/1/18 - 3/31/19
Annualized
Expense Ratio(1)(2)
Actual
 
 
 
 
G Class
$1,000
$968.30
$0.00
0.00%
Hypothetical
 
 
 
 
G Class
$1,000
$1,024.93
$0.00
0.00%
(1)
Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.
(2)
Other expenses, which include directors' fees and expenses, did not exceed 0.005%.

6

Schedule of Investments

MARCH 31, 2019
 
Shares
Value
COMMON STOCKS — 94.0%
 
 
Aerospace and Defense — 0.4%
 
 
Textron, Inc.
71,916

$
3,643,265

Airlines — 1.5%
 
 
Southwest Airlines Co.
267,506

13,886,236

Auto Components — 1.1%
 
 
Aptiv plc
28,892

2,296,625

BorgWarner, Inc.
216,933

8,332,397

 
 
10,629,022

Automobiles — 1.7%
 
 
Honda Motor Co. Ltd. ADR
315,668

8,576,699

Thor Industries, Inc.
116,264

7,251,386

 
 
15,828,085

Banks — 9.3%
 
 
BB&T Corp.
412,813

19,208,189

Comerica, Inc.
105,397

7,727,708

Commerce Bancshares, Inc.
153,275

8,899,147

First Hawaiian, Inc.
435,366

11,341,284

M&T Bank Corp.
68,423

10,743,779

Prosperity Bancshares, Inc.
76,587

5,289,098

SunTrust Banks, Inc.
71,163

4,216,408

UMB Financial Corp.
166,915

10,689,237

Westamerica Bancorporation
143,685

8,879,733

 
 
86,994,583

Beverages — 0.5%
 
 
Molson Coors Brewing Co., Class B
75,705

4,515,803

Building Products — 1.9%
 
 
Johnson Controls International plc
429,152

15,852,875

Masco Corp.
56,981

2,239,923

 
 
18,092,798

Capital Markets — 6.7%
 
 
Ameriprise Financial, Inc.
107,844

13,814,816

Invesco Ltd.
638,086

12,321,441

Northern Trust Corp.
308,531

27,894,288

State Street Corp.
129,240

8,505,284

 
 
62,535,829

Commercial Services and Supplies — 0.5%
 
 
Republic Services, Inc.
56,484

4,540,184

Containers and Packaging — 3.5%
 
 
Graphic Packaging Holding Co.
1,011,248

12,772,062

Packaging Corp. of America
61,956

6,157,187

Sonoco Products Co.
133,199

8,195,735


7

 
Shares
Value
WestRock Co.
133,091

$
5,104,040

 
 
32,229,024

Distributors — 0.7%
 
 
Genuine Parts Co.
59,347

6,648,644

Electric Utilities — 4.6%
 
 
Edison International
102,477

6,345,376

Eversource Energy
89,005

6,314,905

Pinnacle West Capital Corp.
124,473

11,897,129

Xcel Energy, Inc.
319,748

17,973,035

 
 
42,530,445

Electrical Equipment — 6.6%
 
 
Eaton Corp. plc
116,487

9,384,193

Emerson Electric Co.
170,327

11,662,290

Hubbell, Inc.
204,275

24,100,364

nVent Electric plc
305,794

8,250,322

Schneider Electric SE
96,694

7,586,149

 
 
60,983,318

Electronic Equipment, Instruments and Components — 1.0%
 
 
TE Connectivity Ltd.
112,377

9,074,443

Energy Equipment and Services — 2.1%
 
 
Baker Hughes a GE Co.
374,042

10,368,444

Halliburton Co.
161,179

4,722,545

National Oilwell Varco, Inc.
152,718

4,068,407

 
 
19,159,396

Equity Real Estate Investment Trusts (REITs) — 4.8%
 
 
American Tower Corp.
22,057

4,346,553

Empire State Realty Trust, Inc., Class A
288,068

4,551,474

MGM Growth Properties LLC, Class A
308,937

9,963,218

Piedmont Office Realty Trust, Inc., Class A
398,174

8,301,928

Weyerhaeuser Co.
670,238

17,654,069

 
 
44,817,242

Food and Staples Retailing — 0.9%
 
 
Sysco Corp.
130,466

8,709,910

Food Products — 4.7%
 
 
Conagra Brands, Inc.
342,376

9,497,510

J.M. Smucker Co. (The)
43,998

5,125,767

Kellogg Co.
84,982

4,876,267

Mondelez International, Inc., Class A
242,501

12,105,650

Orkla ASA
1,611,497

12,368,895

 
 
43,974,089

Gas Utilities — 1.6%
 
 
Atmos Energy Corp.
68,914

7,093,318

Spire, Inc.
91,533

7,532,251

 
 
14,625,569

Health Care Equipment and Supplies — 4.1%
 
 
Hologic, Inc.(1) 
85,871

4,156,156

Siemens Healthineers AG
145,328

6,056,257


8

 
Shares
Value
Zimmer Biomet Holdings, Inc.
215,641

$
27,537,356

 
 
37,749,769

Health Care Providers and Services — 4.4%
 
 
Cardinal Health, Inc.
258,101

12,427,563

Henry Schein, Inc.(1) 
113,231

6,806,315

McKesson Corp.
76,865

8,997,817

Quest Diagnostics, Inc.
137,431

12,357,796

 
 
40,589,491

Health Care Technology — 1.0%
 
 
Cerner Corp.(1) 
159,657

9,133,977

Hotels, Restaurants and Leisure — 1.7%
 
 
Carnival Corp.
148,740

7,544,093

Sodexo SA
75,163

8,276,274

 
 
15,820,367

Household Durables — 1.0%
 
 
PulteGroup, Inc.
337,037

9,423,555

Household Products — 1.0%
 
 
Kimberly-Clark Corp.
76,049

9,422,471

Insurance — 5.1%
 
 
Aflac, Inc.
118,462

5,923,100

Arthur J. Gallagher & Co.
35,447

2,768,411

Brown & Brown, Inc.
170,719

5,037,917

Chubb Ltd.
101,102

14,162,368

ProAssurance Corp.
120,292

4,163,306

Reinsurance Group of America, Inc.
63,012

8,946,444

Torchmark Corp.
39,897

3,269,559

Travelers Cos., Inc. (The)
24,330

3,337,103

 
 
47,608,208

Machinery — 3.7%
 
 
Atlas Copco AB, B Shares
295,649

7,317,053

Cummins, Inc.
76,921

12,143,518

IMI plc
725,642

9,054,175

PACCAR, Inc.
87,359

5,952,642

 
 
34,467,388

Multi-Utilities — 3.2%
 
 
Ameren Corp.
137,957

10,146,738

NorthWestern Corp.
187,888

13,229,194

WEC Energy Group, Inc.
80,253

6,346,407

 
 
29,722,339

Multiline Retail — 0.7%
 
 
Target Corp.
86,112

6,911,349

Oil, Gas and Consumable Fuels — 5.2%
 
 
Anadarko Petroleum Corp.
140,229

6,377,615

Cimarex Energy Co.
94,666

6,617,153

Devon Energy Corp.
294,965

9,309,095

EQT Corp.
325,423

6,749,273

Equitrans Midstream Corp.(1) 
260,338

5,670,162


9

 
Shares
Value
Imperial Oil Ltd.
152,119

$
4,152,581

Noble Energy, Inc.
370,581

9,164,468

 
 
48,040,347

Road and Rail — 1.0%
 
 
Heartland Express, Inc.
477,673

9,209,535

Semiconductors and Semiconductor Equipment — 3.7%
 
 
Applied Materials, Inc.
262,822

10,423,520

Maxim Integrated Products, Inc.
213,053

11,328,028

Microchip Technology, Inc.
88,484

7,340,633

Teradyne, Inc.
124,624

4,965,020

 
 
34,057,201

Specialty Retail — 1.1%
 
 
Advance Auto Parts, Inc.
58,523

9,979,927

Technology Hardware, Storage and Peripherals — 0.7%
 
 
HP, Inc.
333,589

6,481,634

Thrifts and Mortgage Finance — 1.0%
 
 
Capitol Federal Financial, Inc.
698,722

9,327,939

Trading Companies and Distributors — 1.3%
 
 
MSC Industrial Direct Co., Inc., Class A
152,057

12,576,635

TOTAL COMMON STOCKS
(Cost $771,525,992)
 
873,940,017

EXCHANGE-TRADED FUNDS — 3.0%
 
 
iShares Russell Mid-Cap Value ETF
(Cost $26,960,579)
322,102

27,977,779

TEMPORARY CASH INVESTMENTS — 2.8%
 
 
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.125% - 2.875%, 9/30/19 - 2/15/44, valued at $23,030,021), in a joint trading account at 2.35%, dated 3/29/19, due 4/1/19 (Delivery value $22,574,381)
 
22,569,961

Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.50%, 8/15/23, valued at $3,848,070), at 1.25%, dated 3/29/19, due 4/1/19 (Delivery value $3,772,393)
 
3,772,000

State Street Institutional U.S. Government Money Market Fund, Premier Class
12,483

12,483

TOTAL TEMPORARY CASH INVESTMENTS
(Cost $26,354,444)
 
26,354,444

TOTAL INVESTMENT SECURITIES — 99.8%
(Cost $824,841,015)
 
928,272,240

OTHER ASSETS AND LIABILITIES — 0.2%
 
1,853,854

TOTAL NET ASSETS — 100.0%
 
$
930,126,094




10

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Currency Purchased
Currency Sold
Counterparty
Settlement Date
Unrealized Appreciation
(Depreciation)
CAD
171,971
USD
128,739
Morgan Stanley
6/28/19
$
227

USD
3,590,304
CAD
4,807,417
Morgan Stanley
6/28/19
(14,926
)
EUR
513,428
USD
580,383
Credit Suisse AG
6/28/19
(203
)
USD
19,279,969
EUR
16,898,616
Credit Suisse AG
6/28/19
184,309

GBP
169,619
USD
225,331
JPMorgan Chase Bank N.A.
6/28/19
(3,454
)
USD
7,897,948
GBP
5,958,246
JPMorgan Chase Bank N.A.
6/28/19
103,990

USD
5,311,129
JPY
580,514,324
Bank of America N.A.
6/28/19
37,536

NOK
2,821,731
USD
327,845
Goldman Sachs & Co.
6/28/19
407

USD
10,831,336
NOK
92,076,104
Goldman Sachs & Co.
6/28/19
120,109

USD
6,219,646
SEK
57,032,909
Goldman Sachs & Co.
6/28/19
45,171

 
 
 
 
 
 
$
473,166


NOTES TO SCHEDULE OF INVESTMENTS
ADR
-
American Depositary Receipt
CAD
-
Canadian Dollar
EUR
-
Euro
GBP
-
British Pound
JPY
-
Japanese Yen
NOK
-
Norwegian Krone
SEK
-
Swedish Krona
USD
-
United States Dollar
(1)
Non-income producing.


See Notes to Financial Statements.

11

Statement of Assets and Liabilities
MARCH 31, 2019
 
Assets
 
Investment securities, at value (cost of $824,841,015)
$
928,272,240

Receivable for investments sold
1,742,450

Unrealized appreciation on forward foreign currency exchange contracts
491,749

Dividends and interest receivable
1,663,443

 
932,169,882

 
 
Liabilities
 
Payable for investments purchased
2,004,261

Payable for capital shares redeemed
20,944

Unrealized depreciation on forward foreign currency exchange contracts
18,583

 
2,043,788

 
 
Net Assets
$
930,126,094

 
 
G Class Capital Shares, $0.01 Par Value
 
Shares authorized
550,000,000

Shares outstanding
80,260,543

 
 
Net Asset Value Per Share
$
11.59

 
 
Net Assets Consist of:
 
Capital (par value and paid-in surplus)
$
848,672,329

Distributable earnings
81,453,765

 
$
930,126,094



See Notes to Financial Statements.


12

Statement of Operations
YEAR ENDED MARCH 31, 2019
 
Investment Income (Loss)
 
Income:
 
Dividends (net of foreign taxes withheld of $171,866)
$
22,244,104

Interest
370,006

 
22,614,110

 
 
Expenses:
 
Management fees
6,317,379

Directors' fees and expenses
26,996

Other expenses
5,227

 
6,349,602

Fees waived
(6,317,379
)
 
32,223

 
 
Net investment income (loss)
22,581,887

 
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) on:
 
Investment transactions
54,213,989

Forward foreign currency exchange contract transactions
3,342,573

Foreign currency translation transactions
(3,037
)
 
57,553,525

 
 
Change in net unrealized appreciation (depreciation) on:
 
Investments
(58,980,918
)
Forward foreign currency exchange contracts
407,663

Translation of assets and liabilities in foreign currencies
(412
)
 
(58,573,667
)
 
 
Net realized and unrealized gain (loss)
(1,020,142
)
 
 
Net Increase (Decrease) in Net Assets Resulting from Operations
$
21,561,745



See Notes to Financial Statements.


13

Statement of Changes in Net Assets
YEARS ENDED MARCH 31, 2019 AND MARCH 31, 2018
Increase (Decrease) in Net Assets
March 31, 2019
March 31, 2018
Operations
 
 
Net investment income (loss)
$
22,581,887

$
24,318,094

Net realized gain (loss)
57,553,525

91,802,235

Change in net unrealized appreciation (depreciation)
(58,573,667
)
(48,186,284
)
Net increase (decrease) in net assets resulting from operations
21,561,745

67,934,045

 
 
 
Distributions to Shareholders
 
 
From earnings:(1)
 
 
G Class
(129,362,542
)
(104,759,403
)
R6 Class
—

(365,288
)
Decrease in net assets from distributions
(129,362,542
)
(105,124,691
)
 
 
 
Capital Share Transactions
 
 
Net increase (decrease) in net assets from capital share transactions (Note 5)
16,296,954

11,132,295

 
 
 
Net increase (decrease) in net assets
(91,503,843
)
(26,058,351
)
 
 
 
Net Assets
 
 
Beginning of period
1,021,629,937

1,047,688,288

End of period
$
930,126,094

$
1,021,629,937


(1)
Prior period presentation has been updated to reflect the current period combination of distributions to shareholders from net investment income and net realized gains. Distributions from net investment income were $(23,096,584) and $(365,288) for G Class and R6 Class, respectively. Distributions from net realized gains were $(81,662,819) for G Class.

See Notes to Financial Statements.


14

Notes to Financial Statements

MARCH 31, 2019

1. Organization

American Century Capital Portfolios, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. NT Mid Cap 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. Income is a secondary objective. The fund is not permitted to invest in securities issued by companies assigned the Global Industry Classification Standard or the Bloomberg Industry Classification Standard for the tobacco industry. The fund offers the G Class. On July 31, 2017, all outstanding R6 Class shares were converted to G Class shares and the fund discontinued offering the R6 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 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 net asset value per share. Repurchase agreements are valued at cost, which approximates fair value. Forward foreign currency exchange contracts are valued at the mean of the appropriate forward exchange rate at the close of the NYSE as provided by an independent pricing service.
 
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
 

15

The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value 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. If significant fluctuations in foreign markets are identified, 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.
 
Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid quarterly. Distributions from net realized gains, if any, are generally declared and paid annually.
 
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.


16

3. Fees and Transactions with Related Parties

Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc., 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, 100% 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 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, will be paid by ACIM. 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 0.65%. The investment advisor agreed to waive the 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 March 31, 2019 was 0.65% 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 purchases and sales were $6,909,089 and $9,842,750, respectively. The effect of interfund transactions on the Statement of Operations was $1,283,372 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 March 31, 2019 were $550,414,058 and $642,581,812, respectively.

5. Capital Share Transactions

Transactions in shares of the fund were as follows:
 
Year ended
March 31, 2019
Year ended
March 31, 2018
 
Shares
Amount
Shares
Amount
G Class/Shares Authorized
550,000,000

 
550,000,000

 
Sold
8,947,578

$
108,253,911

14,251,886

$
197,749,634

Issued in reinvestment of distributions
11,645,404

129,362,542

7,743,905

104,759,403

Redeemed
(17,472,830
)
(221,319,499
)
(12,739,594
)
(178,048,521
)
 
3,120,152

16,296,954

9,256,197

124,460,516

R6 Class/Shares Authorized
N/A

 
N/A

 
Sold
 
 
855,387

11,802,674

Issued in reinvestment of distributions
 
 
26,318

365,288

Redeemed
 
 
(8,999,664
)
(125,496,183
)
 
 
 
(8,117,959
)
(113,328,221
)
Net increase (decrease)
3,120,152

$
16,296,954

1,138,238

$
11,132,295



17

6. Fair Value Measurements

The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.

•
Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.

•
Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.

•
Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).

The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
 
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
 
Level 1
Level 2
Level 3
Assets
 
 
 
Investment Securities
 
 
 
Common Stocks
 
 
 
Electrical Equipment
$
53,397,169

$
7,586,149

—

Food Products
31,605,194

12,368,895

—

Health Care Equipment and Supplies
31,693,512

6,056,257

—

Hotels, Restaurants and Leisure
7,544,093

8,276,274

—

Machinery
18,096,160

16,371,228

—

Oil, Gas and Consumable Fuels
43,887,766

4,152,581

—

Other Industries
632,904,739

—

—

Exchange-Traded Funds
27,977,779

—

—

Temporary Cash Investments
12,483

26,341,961

—

 
$
847,118,895

$
81,153,345

—

Other Financial Instruments
 
 
 
Forward Foreign Currency Exchange Contracts
—

$
491,749

—

      
 
 
 
Liabilities
 
 
 
Other Financial Instruments
 
 
 
Forward Foreign Currency Exchange Contracts
—

$
18,583

—


7. Derivative Instruments

Foreign Currency Risk — The fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The value of foreign investments held by a fund may be significantly affected by changes in foreign currency exchange rates. The dollar value of a foreign security generally decreases when the value of the dollar rises against the foreign currency in which the security is denominated and tends to increase when the value of the dollar declines against such foreign currency. A fund may enter into forward foreign currency exchange contracts to reduce a fund's exposure to foreign currency exchange rate fluctuations. The net U.S. dollar value of foreign currency underlying all contractual commitments held by a fund and the resulting unrealized appreciation or depreciation are determined daily. Realized gain or loss is recorded upon the termination of the contract. Net realized and unrealized gains or losses occurring during the holding period of forward foreign currency exchange contracts are a component of net realized gain (loss) on forward foreign currency exchange contract transactions and change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts, respectively. A fund bears the risk of an

18

unfavorable change in the foreign currency exchange rate underlying the forward contract. Additionally, losses, up to the fair value, may arise if the counterparties do not perform under the contract terms. The fund's average U.S. dollar exposure to foreign currency risk derivative instruments held during the period was $52,437,787.
 
The value of foreign currency risk derivative instruments as of March 31, 2019, is disclosed on the Statement of Assets and Liabilities as an asset of $491,749 in unrealized appreciation on forward foreign currency exchange contracts and a liability of $18,583 in unrealized depreciation on forward foreign currency exchange contracts. For the year ended March 31, 2019, the effect of foreign currency risk derivative instruments on the Statement of Operations was $3,342,573 in net realized gain (loss) on forward foreign currency exchange contract transactions and $407,663 in change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts.

8. Risk Factors

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.

9. Federal Tax Information

The tax character of distributions paid during the years ended March 31, 2019 and March 31, 2018 were as follows:
 
2019
2018
Distributions Paid From
 
 
Ordinary income
$
30,009,207

$
33,534,916

Long-term capital gains
$
99,353,335

$
71,589,775


The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
 
As of period end, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:

Federal tax cost of investments
$
845,750,772

Gross tax appreciation of investments
$
127,452,712

Gross tax depreciation of investments
(44,931,244
)
Net tax appreciation (depreciation) of investments
82,521,468

Net tax appreciation (depreciation) on derivatives and translation of assets and liabilities in foreign currencies
(206
)
Net tax appreciation (depreciation)
$
82,521,262

Undistributed ordinary income
$
1,362,150

Post-October capital loss deferral
$
(2,429,647
)

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.

Loss deferrals 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.

19

Financial Highlights
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
Per-Share Data
 
 
 
 
 
 
Ratios and Supplemental Data
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment
Income
(Loss)(1)
Net
Realized
and
Unrealized
Gain (Loss)
Total From
Investment
Operations
Net
Investment
Income
Net
Realized
Gains
Total
Distributions
Net Asset
Value,
End
of Period
Total
Return(2)
Operating
Expenses
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$13.24
0.30
(0.17)
0.13
(0.29)
(1.49)
(1.78)
$11.59
1.87%
0.00%(3)
0.65%
2.32%
1.67%
58%

$930,126

2018
$13.79
0.31
0.55
0.86
(0.30)
(1.11)
(1.41)
$13.24
6.30%
0.24%
0.70%
2.27%
1.81%
51%

$1,021,630

2017
$11.97
0.20
2.30
2.50
(0.22)
(0.46)
(0.68)
$13.79
20.98%
0.78%
0.80%
1.55%
1.53%
60%

$935,804

2016
$12.82
0.17
0.05
0.22
(0.17)
(0.90)
(1.07)
$11.97
2.13%
0.80%
0.81%
1.39%
1.38%
67%

$842,671

2015
$12.62
0.18
1.56
1.74
(0.17)
(1.37)
(1.54)
$12.82
14.05%
0.80%
0.80%
1.37%
1.37%
67%

$762,209

Notes to Financial Highlights
(1)
Computed using average shares outstanding throughout the period.
(2)
Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized.
(3)
Ratio was less than 0.005%.

See Notes to Financial Statements.


Report of Independent Registered Public Accounting Firm

To the shareholders and the Board of Directors of American Century Capital Portfolios, Inc.:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of NT Mid Cap Value Fund, one of the portfolios constituting the American Century Capital Portfolios, Inc. (the “Fund”), as of March 31, 2019, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of NT Mid Cap Value Fund of the American Century Capital Portfolios, Inc. as of March 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP
Kansas City, Missouri
May 16, 2019

We have served as the auditor of one or more American Century investment companies since 1997.

21

Management

The Board of Directors

The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire by December 31 of the year in which they reach their 75th birthday.
Mr. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Director
Other Directorships Held During Past 5 Years
Independent Directors


Thomas W. Bunn (1953)
Director
Since 2017
Retired
67
SquareTwo Financial; Barings (formerly Babson Capital Funds Trust) (2013 to 2016)
Chris H. Cheesman
(1962)
Director
Since 2019
Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018)
67
None
Barry Fink
(1955)
Director
Since 2012 (independent since 2016)
Retired
67
None
Rajesh K. Gupta
(1960)
Director
Since 2019
Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to Present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019)
67
None


22

Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Director
Other Directorships Held During Past 5 Years
Independent Directors


Lynn Jenkins
(1963)
Director
Since 2019
United States Representative, U.S. House of Representatives (2009 to 2018)
67
MGP Ingredients, Inc.
Jan M. Lewis
(1957)
Director
Since 2011
Retired
67
None
John R. Whitten
(1946)
Director
Since 2008
Retired
67
Rudolph Technologies, Inc.
Stephen E. Yates
(1948)
Director and Chairman of the Board
Since 2012 (Chairman since 2018)
Retired
72
None
Interested Director


Jonathan S. Thomas
(1963)
Director and President
Since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
117
BioMed Valley Discoveries, Inc.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.

23

Officers

The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for 16 (in the case of Robert J. Leach, 15) investment companies in the American Century family of funds, unless otherwise noted. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Offices with the Funds
Principal Occupation(s) During the Past Five Years
Jonathan S. Thomas
(1963)
Director and President since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
R. Wes Campbell
(1974)
Chief Financial Officer and Treasurer since 2018
Investment Operations and Investment Accounting, ACS (2000 to present)
Amy D. Shelton
(1964)
Chief Compliance Officer and Vice President since 2014
Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present); Vice President, Client Interactions and Marketing, ACIS (2013 to 2014). Also serves as Vice President, ACIS
Charles A. Etherington
(1957)
General Counsel since 2007 and Senior Vice President since 2006
Attorney, ACC (1994 to present); Vice President, ACC (2005 to present); General Counsel, ACC (2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS
C. Jean Wade
(1964)
Vice President since 2012
Senior Vice President, ACS (2017 to present); Vice President, ACS (2000 to 2017)
Robert J. Leach
(1966)
Vice President since 2006
Vice President, ACS (2000 to present)
David H. Reinmiller
(1963)
Vice President since 2000
Attorney, ACC (1994 to present). Also serves as Vice President, ACIM and ACS
Ward D. Stauffer
(1960)
Secretary since 2005
Attorney, ACC (2003 to present)



24

Additional Information

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 the "About Us" page of American Century Investments’ website at americancentury.com and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.


Quarterly Portfolio Disclosure

The 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 on Form N-Q or as an exhibit to its reports on Form N-PORT. The fund’s Forms N-Q and Form N-PORT reports are available on the SEC’s website at sec.gov. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.

25

Other Tax Information

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund hereby designates up to the maximum amount allowable as qualified dividend income for the fiscal year ended March 31, 2019.

For corporate taxpayers, the fund hereby designates $17,200,710, or up to the maximum amount allowable, of ordinary income distributions paid during the fiscal year ended March 31, 2019 as qualified for the corporate dividends received deduction.

The fund hereby designates $7,800,258 as qualified short-term capital gain distributions for purposes of Internal Revenue Code Section 871 for the fiscal year ended March 31, 2019.

The fund hereby designates $99,353,335, or up to the maximum amount allowable, as long-term capital gain distributions (20% rate gain distributions) for the fiscal year ended March 31, 2019.


26

Notes

27

Notes




28




acihorizblkd42.jpg
 
 
 
 
Contact Us
americancentury.com
 
Automated Information Line
1-800-345-8765
 
Investor Services Representative
1-800-345-2021
or 816-531-5575
 
Investors Using Advisors
1-800-378-9878
 
Business, Not-For-Profit, Employer-Sponsored Retirement Plans
1-800-345-3533
 
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies
1-800-345-6488
 
Telecommunications Relay Service for the Deaf
711
 
 
 
 
American Century Capital Portfolios, Inc.
 
 
 
 
Investment Advisor:
American Century Investment Management, Inc.
Kansas City, Missouri
 
 
 
 
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
 
 
 
 
©2019 American Century Proprietary Holdings, Inc. All rights reserved.
CL-ANN-92291 1905
 





acihorizblkd42.jpg
                  

 
 
 
Annual Report
 
 
 
March 31, 2019
 
 
 
Small Cap Value Fund
 
Investor Class (ASVIX)
 
I Class (ACVIX)
 
Y Class (ASVYX)
 
A Class (ACSCX)
 
C Class (ASVNX)
 
R Class (ASVRX)
 
R5 Class (ASVGX)
 
R6 Class (ASVDX)















Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.

You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.





Table of Contents
President’s Letter
2

Performance
3

Portfolio Commentary

Fund Characteristics

Shareholder Fee Example

Schedule of Investments

Statement of Assets and Liabilities

Statement of Operations

Statement of Changes in Net Assets

Notes to Financial Statements

Financial Highlights

Report of Independent Registered Public Accounting Firm

Management

Additional Information






















Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.


President’s Letter

jthomasrev0514.jpg Jonathan Thomas

Dear Investor:

Thank you for reviewing this annual report for the period ended March 31, 2019. Annual reports help convey important information about fund returns, including market factors that affected performance during the reporting period. For additional, updated investment and market insights, we encourage you to visit our website, americancentury.com.

Markets Ended Roller-Coaster Period on Upswing

For the first half of the period, U.S. stocks climbed higher, while bond returns headed lower. Robust economic growth, bolstered by federal tax and regulatory reform, and record corporate earnings results fueled risk-on sentiment that drove stock prices higher. Meanwhile, the combination of strong economic data, the Federal Reserve’s (Fed’s) ongoing rate-hike campaign and an uptick in inflation pushed investment-grade bond returns lower.

Market trends began changing in late 2018. Mounting investor concerns about slowing global economic and earnings growth, U.S.-China trade tensions and rising interest rates triggered widespread volatility. Stock prices plunged as investors sought safe-haven investments, including U.S. Treasuries. Furthermore, the Fed issued another rate hike in December, its fourth of the year, and maintained its hawkish outlook. Investors feared the December rate increase and the Fed’s plans for two more rate hikes in 2019 were too aggressive, and risk-off investing remained in favor.

January brought a renewed sense of stability to the markets. Investors’ concerns about growth and trade eased, and the Fed changed course, pausing its rate-hike campaign amid moderating global growth and inflation. Valuations appeared attractive after the late-2018 sell-off, and risk-on investing resumed. In March, the Fed held rates steady again, hinting additional tightening was off the table for 2019. This news drove stock and bond returns higher and left both asset classes on an upward track to end the period. Overall, stocks (S&P 500 Index) overcame their late-2018 nosedive to gain 9.50% for the period. Bonds (Bloomberg Barclays U.S. Aggregate Bond Index) bounced back from losses early in the period to return 4.48%.

We expect volatility to remain a formidable factor as investors react to global growth trends, central bank policy and geopolitical developments. We believe this scenario underscores the importance of using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.

Sincerely,
image48a01.jpg
Jonathan Thomas
President and Chief Executive Officer
American Century Investments


2

Performance
 
Total Returns as of March 31, 2019
 
 
 
 
Average Annual Returns
 
 
Ticker
Symbol
 1 year
5 years
10 years
Since
Inception
Inception
Date
Investor Class
ASVIX
-3.15%
5.91%
14.60%
—
7/31/98
Russell 2000 Value Index
—
0.17%
5.59%
14.11%
—
—
I Class
ACVIX
-2.95%
6.12%
14.84%
—
10/26/98
Y Class
ASVYX
-2.80%
—
—
2.22%
4/10/17
A Class
ACSCX
 
 
 

12/31/99
No sales charge
 
-3.32%
5.66%
14.31%
—
 
With sales charge
 
-8.87%
4.41%
13.63%
—
 
C Class
ASVNX
-4.19%
4.85%
—
8.86%
3/1/10
R Class
ASVRX
-3.58%
5.38%
—
9.43%
3/1/10
R5 Class
ASVGX
-2.92%
—
—
2.10%
4/10/17
R6 Class
ASVDX
-2.80%
6.28%
—
7.71%
7/26/13
Average annual returns since inception are presented when ten years of performance history is not available.
Prior to March 1, 2010, the A Class was referred to as the Advisor Class and did not have a front-end sales charge. Performance prior to that date has been adjusted to reflect this charge.

Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.


















Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

3

Growth of $10,000 Over 10 Years
$10,000 investment made March 31, 2009
Performance for other share classes will vary due to differences in fee structure.
chart-01f0513e5b7f5c43835.jpg
Value on March 31, 2019
 
Investor Class — $39,108
 
 
Russell 2000 Value Index — $37,457
 
Total Annual Fund Operating Expenses
Investor Class
I Class
Y Class
A Class
C Class
R Class
R5 Class
R6 Class
1.26%
1.06%
0.91%
1.51%
2.26%
1.76%
1.06%
0.91%
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.















Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

4

Portfolio Commentary
 

Portfolio Managers: Jeff John and Miles Lewis

Performance Summary

Small Cap Value returned -3.15%* for the fiscal year ended March 31, 2019, compared with the 0.17% return of its benchmark, the Russell 2000 Value Index.

Small Cap Value declined during the fiscal year, trailing its benchmark, the Russell 2000 Value Index, which posted a modest gain. Stock selection in the industrials and financials sectors weighed on relative performance, as did the fund’s lack of exposure to the utilities sector. Conversely, stock choices and an overweight position in the information technology sector boosted fund returns. Stock selection in real estate and an underweight in energy also helped performance.

Industrials Holdings Weighed on Performance
Stock selection in the industrials sector was a key detractor from the fund’s relative performance. Dycom Industries was a top individual detractor. The provider of construction services for cable and telecommunications networks underperformed after announcing a change in the expected timing for revenues related to orders for some of its largest customers. InnerWorkings was another laggard in the sector. Lower-than-expected earnings from the outsourced print and marketing service provider drove concerns that the company was taking longer than anticipated to gain traction as a disruptive new service model for enterprises. We think the value proposition is intact but will take time to materialize.
Avoidance of the utilities sector, where the fund does not hold any positions, also weighed on relative returns. Amid market volatility at the end of 2018, the utilities sector was a top performer. Our lack of exposure, therefore, weighed on relative performance.
Stock choices in the financials sector, particularly among banks, hurt relative returns. Bank OZK weighed on results. The Arkansas-based regional bank lagged after reporting declines in loan growth and net interest margins, but more significant pressure came from its disclosure of two large credit losses. We remain invested after fully reevaluating the stock but expect markets to continue testing the stock until a downturn proves its loan quality.

Information Technology Positioning Boosted Returns
Positioning in the information technology sector contributed to returns, boosted by stock choices in the sector and by overweight exposure relative to the benchmark. EVERTEC was a top contributor. The Puerto Rico-based credit card processing company outperformed as it continued to recover from 2017’s Hurricane Maria. The island’s economy has made progress in recent months, and EVERTEC’s transaction-based recurring revenue structure continues to be attractive. Aerospace and defense specialty components maker Esterline Technologies boosted results. The stock outperformed after management announced the company would be acquired by TransDigm Group for $122.50 per share in cash. The deal is expected to close mid-2019. We exited our position following the announcement.

Selection in the real estate sector also helped performance, with strong performance from senior housing and health care property REIT CareTrust REIT and health care operator REIT MedEquities Realty Trust, which announced it would be acquired by Omega Healthcare Investors. Elsewhere in



*
All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the fund's benchmark, other share classes may not. See page 3 for returns for all share classes.

5

the portfolio, TreeHouse Foods was a top individual contributor. Shares of the private-label food manufacturer rallied after the firm hired a new CEO with strong operational experience. Also, earnings reports over the period showed signs that the company is stabilizing after facing issues with an acquisition and pricing pressure from some of its largest buyers. We exited our position in the stock.

Portfolio Positioning

The portfolio seeks to invest in companies where we believe the valuation does not reflect the quality and normal earnings power of the company. Our process is based on individual security selection, but broad themes have emerged.

We continue to be overweight in financials. We increased our overweight in recent months, increasing our exposure to banks in particular. Banks have been pressured by the continued flattening of the interest rate curve, which can dampen their ability to generate earnings. Banks in general enjoy a higher level of capitalization than they held in the last business cycle, and we think the valuation pressure creates an opportunity.

We also continue to be overweight in the materials sector, where we favor specialized containers and packaging as well as specialty chemical companies. Both niches tend to have attractive free cash flow and virtually no commodity exposure, creating consumer staples-like businesses at attractive valuations. We also maintain an overweight in the industrials sector, where we have identified several attractively valued, higher-quality stocks.

In terms of underweight exposure, we have continued to avoid the utilities sector. Our metrics show that valuations remain too rich for our investment process. Additionally, it has been difficult for us to find higher-quality utilities stocks. The consumer discretionary sector is another key underweight in the portfolio.


6

Fund Characteristics 
MARCH 31, 2019
Top Ten Holdings
% of net assets
Compass Diversified Holdings
2.8%
Graphic Packaging Holding Co.
2.7%
Home BancShares, Inc.
2.6%
BankUnited, Inc.
2.5%
Valley National Bancorp
2.5%
Texas Capital Bancshares, Inc.
2.2%
First Hawaiian, Inc.
2.0%
EnPro Industries, Inc.
1.9%
Silgan Holdings, Inc.
1.9%
Ares Management Corp., Class A
1.9%
 
 
Top Five Industries
% of net assets
Banks
21.3%
Equity Real Estate Investment Trusts (REITs)
8.9%
Insurance
7.4%
Machinery
6.4%
Electronic Equipment, Instruments and Components
5.5%
 
 
Types of Investments in Portfolio
% of net assets
Common Stocks
97.6%
Temporary Cash Investments
2.6%
Other Assets and Liabilities
(0.2)%





7

Shareholder Fee Example 

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.

The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from October 1, 2018 to March 31, 2019.

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 a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.

Hypothetical Example for Comparison Purposes

The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

8

 
Beginning
Account Value
10/1/18
Ending
Account Value
3/31/19
Expenses Paid
During Period(1) 
10/1/18 - 3/31/19
 
Annualized
Expense Ratio(1)
Actual
 
 
 
 
Investor Class
$1,000
$918.90
$5.98
1.25%
I Class
$1,000
$919.00
$5.02
1.05%
Y Class
$1,000
$920.50
$4.31
0.90%
A Class
$1,000
$917.40
$7.17
1.50%
C Class
$1,000
$913.40
$10.73
2.25%
R Class
$1,000
$916.40
$8.36
1.75%
R5 Class
$1,000
$920.30
$5.03
1.05%
R6 Class
$1,000
$919.40
$4.31
0.90%
Hypothetical
 
 
 
 
Investor Class
$1,000
$1,018.70
$6.29
1.25%
I Class
$1,000
$1,019.70
$5.29
1.05%
Y Class
$1,000
$1,020.44
$4.53
0.90%
A Class
$1,000
$1,017.45
$7.54
1.50%
C Class
$1,000
$1,013.71
$11.30
2.25%
R Class
$1,000
$1,016.21
$8.80
1.75%
R5 Class
$1,000
$1,019.70
$5.29
1.05%
R6 Class
$1,000
$1,020.44
$4.53
0.90%
(1)
Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.

9

Schedule of Investments
MARCH 31, 2019
 
Shares
Value
COMMON STOCKS — 97.6%
 
 
Banks — 21.3%
 
 
Ameris Bancorp
130,000

$
4,465,500

Bank OZK
310,000

8,983,800

BankUnited, Inc.
1,020,000

34,068,000

First Hawaiian, Inc.
1,030,000

26,831,500

Hilltop Holdings, Inc.
1,015,000

18,523,750

Home BancShares, Inc.
2,039,930

35,841,570

LegacyTexas Financial Group, Inc.
600,000

22,434,000

Origin Bancorp, Inc.
456,525

15,544,676

Signature Bank
125,000

16,008,750

South State Corp.
275,000

18,793,500

Texas Capital Bancshares, Inc.(1) 
545,000

29,751,550

UMB Financial Corp.
375,000

24,015,000

Valley National Bancorp
3,540,000

33,913,200

 
 
289,174,796

Building Products — 1.6%
 
 
CSW Industrials, Inc.
140,000

8,020,600

Gibraltar Industries, Inc.(1) 
240,000

9,746,400

PGT Innovations, Inc.(1) 
281,000

3,891,850

 
 
21,658,850

Capital Markets — 3.5%
 
 
Ares Management Corp., Class A
1,090,000

25,298,900

Donnelley Financial Solutions, Inc.(1) 
1,525,000

22,692,000

 
 
47,990,900

Chemicals — 3.9%
 
 
Innophos Holdings, Inc.
572,467

17,254,155

Minerals Technologies, Inc.
430,000

25,279,700

PolyOne Corp.
275,000

8,060,250

WR Grace & Co.
35,000

2,731,400

 
 
53,325,505

Commercial Services and Supplies — 3.6%
 
 
Brink's Co. (The)
245,000

18,475,450

CECO Environmental Corp.(1) 
850,000

6,120,000

Charah Solutions, Inc.(1) 
1,383,572

8,854,861

Deluxe Corp.
330,000

14,427,600

Emerald Expositions Events, Inc.
100,030

1,270,381

 
 
49,148,292

Communications Equipment — 0.8%
 
 
Casa Systems, Inc.(1) 
1,365,000

11,329,500

Construction and Engineering — 1.4%
 
 
Dycom Industries, Inc.(1) 
305,000

14,011,700

Valmont Industries, Inc.
35,000

4,553,500

 
 
18,565,200


10

 
Shares
Value
Construction Materials — 0.5%
 
 
Tecnoglass, Inc.
906,901

$
6,602,239

Containers and Packaging — 4.8%
 
 
Graphic Packaging Holding Co.
2,875,000

36,311,250

RPC Group plc
265,000

2,726,678

Silgan Holdings, Inc.
865,000

25,629,950

 
 
64,667,878

Diversified Financial Services — 2.8%
 
 
Compass Diversified Holdings
2,440,000

38,283,600

Electrical Equipment — 0.1%
 
 
AZZ, Inc.
45,362

1,856,667

Electronic Equipment, Instruments and Components — 5.5%
 
 
Avnet, Inc.
445,000

19,299,650

Belden, Inc.
400,000

21,480,000

Coherent, Inc.(1) 
160,000

22,675,200

Tech Data Corp.(1) 
110,000

11,265,100

 
 
74,719,950

Energy Equipment and Services — 1.1%
 
 
C&J Energy Services, Inc.(1) 
130,000

2,017,600

Dril-Quip, Inc.(1) 
165,000

7,565,250

Liberty Oilfield Services, Inc., Class A
125,000

1,923,750

NCS Multistage Holdings, Inc.(1) 
710,000

3,677,800

 
 
15,184,400

Equity Real Estate Investment Trusts (REITs) — 8.9%
 
 
Brandywine Realty Trust
1,010,000

16,018,600

CareTrust REIT, Inc.
355,000

8,328,300

Community Healthcare Trust, Inc.
200,000

7,178,000

Highwoods Properties, Inc.
135,000

6,315,300

Kite Realty Group Trust
1,340,000

21,426,600

Lexington Realty Trust
750,000

6,795,000

MedEquities Realty Trust, Inc.
507,388

5,647,229

National Health Investors, Inc.
105,000

8,247,750

RLJ Lodging Trust
310,000

5,446,700

Sabra Health Care REIT, Inc.
615,000

11,974,050

Summit Hotel Properties, Inc.
640,000

7,302,400

Urstadt Biddle Properties, Inc., Class A
190,000

3,921,600

Weingarten Realty Investors
415,000

12,188,550

 
 
120,790,079

Food and Staples Retailing — 0.1%
 
 
Weis Markets, Inc.
24,329

992,867

Food Products — 1.8%
 
 
Hain Celestial Group, Inc. (The)(1) 
895,000

20,692,400

Hostess Brands, Inc.(1) 
265,000

3,312,500

 
 
24,004,900

Health Care Providers and Services — 2.2%
 
 
Premier, Inc., Class A(1) 
225,000

7,760,250


11

 
Shares
Value
Providence Service Corp. (The)(1) 
330,000

$
21,984,600

 
 
29,744,850

Hotels, Restaurants and Leisure — 0.8%
 
 
Red Robin Gourmet Burgers, Inc.(1) 
365,000

10,515,650

Household Products — 1.7%
 
 
Spectrum Brands Holdings, Inc.
420,000

23,007,600

Insurance — 7.4%
 
 
AMERISAFE, Inc.
315,000

18,711,000

Axis Capital Holdings Ltd.
380,000

20,816,400

Hanover Insurance Group, Inc. (The)
105,000

11,987,850

James River Group Holdings Ltd.
399,374

16,006,910

RenaissanceRe Holdings Ltd.
165,000

23,677,500

White Mountains Insurance Group Ltd.
10,000

9,254,800

 
 
100,454,460

Internet and Direct Marketing Retail — 0.4%
 
 
Shutterfly, Inc.(1) 
150,000

6,096,000

IT Services — 1.4%
 
 
EVERTEC, Inc.
315,000

8,760,150

Presidio, Inc.
700,000

10,360,000

 
 
19,120,150

Machinery — 6.4%
 
 
EnPro Industries, Inc.
399,118

25,723,155

Gardner Denver Holdings, Inc.(1) 
295,000

8,203,950

Global Brass & Copper Holdings, Inc.
518,427

17,854,626

Graham Corp.
55,048

1,080,592

Hurco Cos., Inc.
100,000

4,033,000

Milacron Holdings Corp.(1) 
910,000

10,301,200

Timken Co. (The)
450,000

19,629,000

 
 
86,825,523

Media — 1.0%
 
 
Entravision Communications Corp., Class A
3,748,208

12,144,194

Townsquare Media, Inc., Class A
243,696

1,393,941

 
 
13,538,135

Mortgage Real Estate Investment Trusts (REITs) — 0.2%
 
 
Granite Point Mortgage Trust, Inc.
140,000

2,599,800

Oil, Gas and Consumable Fuels — 0.7%
 
 
Earthstone Energy, Inc., Class A(1) 
669,962

4,743,331

Extraction Oil & Gas, Inc.(1) 
1,030,000

4,356,900

 
 
9,100,231

Personal Products — 0.5%
 
 
Edgewell Personal Care Co.(1) 
140,000

6,144,600

Professional Services — 1.5%
 
 
InnerWorkings, Inc.(1) 
2,433,005

8,807,478

Korn Ferry
265,000

11,866,700

 
 
20,674,178

Road and Rail — 0.1%
 
 
Heartland Express, Inc.
65,000

1,253,200


12

 
Shares
Value
Semiconductors and Semiconductor Equipment — 2.7%
 
 
Advanced Energy Industries, Inc.(1) 
200,000

$
9,936,000

Cypress Semiconductor Corp.
675,000

10,071,000

Kulicke & Soffa Industries, Inc.
770,000

17,024,700

 
 
37,031,700

Software — 2.8%
 
 
LogMeIn, Inc.
175,000

14,017,500

Sapiens International Corp. NV
430,306

6,575,076

Teradata Corp.(1) 
385,000

16,805,250

 
 
37,397,826

Specialty Retail — 3.0%
 
 
Camping World Holdings, Inc., Class A
1,420,000

19,752,200

Penske Automotive Group, Inc.
455,000

20,315,750

 
 
40,067,950

Technology Hardware, Storage and Peripherals — 1.1%
 
 
Cray, Inc.(1) 
590,000

15,369,500

Trading Companies and Distributors — 2.0%
 
 
Foundation Building Materials, Inc.(1) 
1,770,000

17,416,800

GMS, Inc.(1) 
615,000

9,298,800

 
 
26,715,600

TOTAL COMMON STOCKS
(Cost $1,329,983,738)
 
1,323,952,576

TEMPORARY CASH INVESTMENTS — 2.6%
 
 
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.125% - 2.875%, 9/30/19 - 2/15/44, valued at $30,932,692), in a joint trading account at 2.35%, dated 3/29/19, due 4/1/19 (Delivery value $30,320,700)
 
30,314,764

Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.50%, 8/15/23, valued at $5,173,066), at 1.25%, dated 3/29/19, due 4/1/19 (Delivery value $5,067,528)
 
5,067,000

State Street Institutional U.S. Government Money Market Fund, Premier Class
16,307

16,307

TOTAL TEMPORARY CASH INVESTMENTS
(Cost $35,398,071)
 
35,398,071

TOTAL INVESTMENT SECURITIES — 100.2%
(Cost $1,365,381,809)
 
1,359,350,647

OTHER ASSETS AND LIABILITIES — (0.2)%
 
(3,360,491
)
TOTAL NET ASSETS — 100.0%
 
$
1,355,990,156

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Currency Purchased
Currency Sold
Counterparty
Settlement Date
Unrealized Appreciation
(Depreciation)
USD
2,383,862

GBP
1,798,396

JPMorgan Chase Bank N.A.
6/28/19
$
31,388

NOTES TO SCHEDULE OF INVESTMENTS
GBP
-
British Pound
USD
-
United States Dollar
(1)
Non-income producing.

See Notes to Financial Statements.

13

Statement of Assets and Liabilities
MARCH 31, 2019
 
Assets
 
Investment securities, at value (cost of $1,365,381,809)
$
1,359,350,647

Receivable for investments sold
4,484,919

Receivable for capital shares sold
983,935

Unrealized appreciation on forward foreign currency exchange contracts
31,388

Dividends and interest receivable
1,701,772

 
1,366,552,661

 
 
Liabilities
 
Payable for investments purchased
8,069,142

Payable for capital shares redeemed
1,170,633

Accrued management fees
1,301,144

Distribution and service fees payable
21,586

 
10,562,505

 
 
Net Assets
$
1,355,990,156

 
 
Net Assets Consist of:
 
Capital (par value and paid-in surplus)
$
1,410,688,992

Distributable earnings
(54,698,836
)
 
$
1,355,990,156


 
Net Assets
Shares Outstanding
Net Asset Value
Per Share
Investor Class, $0.01 Par Value
$594,649,569
84,355,820

$7.05
I Class, $0.01 Par Value
$352,298,412
49,406,760

$7.13
Y Class, $0.01 Par Value
$3,320,156
464,932

$7.14
A Class, $0.01 Par Value
$82,754,841
11,891,553

$6.96*
C Class, $0.01 Par Value
$2,536,384
385,826

$6.57
R Class, $0.01 Par Value
$3,437,313
496,768

$6.92
R5 Class, $0.01 Par Value
$491,261
68,852

$7.14
R6 Class, $0.01 Par Value
$316,502,220
44,369,400

$7.13
*Maximum offering price $7.38 (net asset value divided by 0.9425).


See Notes to Financial Statements.


14

Statement of Operations
YEAR ENDED MARCH 31, 2019
 
Investment Income (Loss)
 
Income:
 
Dividends (including $468,300 from affiliates and net of foreign taxes withheld of $24,842)
$
27,854,628

Interest
482,515

 
28,337,143

 
 
Expenses:
 
Management fees
16,478,922

Distribution and service fees:
 
A Class
255,973

C Class
27,288

R Class
16,899

Directors' fees and expenses
40,720

Other expenses
3,563

 
16,823,365

 
 
Net investment income (loss)
11,513,778

 
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) on:
 
Investment transactions (including $(3,880,567) from affiliates)
82,737,566

Forward foreign currency exchange contract transactions
202,579

Foreign currency translation transactions
20,928

 
82,961,073

 
 
Change in net unrealized appreciation (depreciation) on:
 
Investments (including $(6,842,621) from affiliates)
(148,182,735
)
Forward foreign currency exchange contracts
31,388

 
(148,151,347
)
 
 
Net realized and unrealized gain (loss)
(65,190,274
)
 
 
Net Increase (Decrease) in Net Assets Resulting from Operations
$
(53,676,496
)


See Notes to Financial Statements.


15

Statement of Changes in Net Assets
YEARS ENDED MARCH 31, 2019 AND MARCH 31, 2018
Increase (Decrease) in Net Assets
March 31, 2019
March 31, 2018
Operations
 
 
Net investment income (loss)
$
11,513,778

$
8,121,008

Net realized gain (loss)
82,961,073

202,921,565

Change in net unrealized appreciation (depreciation)
(148,151,347
)
(124,365,244
)
Net increase (decrease) in net assets resulting from operations
(53,676,496
)
86,677,329

 
 
 
Distributions to Shareholders
 
 
From earnings:(1)
 
 
Investor Class
(89,060,366
)
(93,490,053
)
I Class
(54,894,046
)
(65,682,719
)
Y Class
(313,187
)
(690
)
A Class
(13,505,350
)
(15,640,921
)
C Class
(401,065
)
(317,339
)
R Class
(477,398
)
(414,021
)
R5 Class
(760
)
(684
)
R6 Class
(45,390,786
)
(32,586,147
)
Decrease in net assets from distributions
(204,042,958
)
(208,132,574
)
 
 
 
Capital Share Transactions
 
 
Net increase (decrease) in net assets from capital share transactions (Note 5)
112,624,110

66,977,658

 
 
 
Net increase (decrease) in net assets
(145,095,344
)
(54,477,587
)
 
 
 
Net Assets
 
 
Beginning of period
1,501,085,500

1,555,563,087

End of period
$
1,355,990,156

$
1,501,085,500


(1)
Prior period presentation has been updated to reflect the current period combination of distributions to shareholders from net investment income and net realized gains. Distributions from net investment income were $(2,152,827), $(2,385,206), $(28), $(109,194), $(22) and $(1,453,277) for Investor Class, I Class, Y Class, A Class, R5 Class and R6 Class, respectively. Distributions from net realized gains were $(91,337,226), $(63,297,513), $(662), $(15,531,727), $(317,339), $(414,021), $(662) and $(31,132,870) for Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class, respectively.


See Notes to Financial Statements.


16

Notes to Financial Statements

MARCH 31, 2019

1. Organization

American Century Capital Portfolios, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Small Cap 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. Income is a secondary objective.

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. Sale of the Y Class and R5 Class commenced on April 10, 2017.

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 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 net asset value per share. Repurchase agreements are valued at cost, which approximates fair value. Forward foreign currency exchange contracts are valued at the mean of the appropriate forward exchange rate at the close of the NYSE as provided by an independent pricing service.
 
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
 

17

The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value 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. If significant fluctuations in foreign markets are identified, 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.
 

18

Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid quarterly. Distributions from net realized gains, if any, are generally declared and paid annually. 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 all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. 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 March 31, 2019 are as follows:
 
Management Fee
Schedule Range
Effective Annual Management Fee
Investor Class
1.00% to 1.25%
1.25%
I Class
0.80% to 1.05%
1.05%
Y Class
0.65% to 0.90%
0.90%
A Class
1.00% to 1.25%
1.25%
C Class
1.00% to 1.25%
1.25%
R Class
1.00% to 1.25%
1.25%
R5 Class
0.80% to 1.05%
1.05%
R6 Class
0.65% to 0.90%
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 March 31, 2019 are detailed in the Statement of Operations.
 

19

Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
 
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $14,370,503 and $17,412,810, respectively. The effect of interfund transactions on the Statement of Operations was $684 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 March 31, 2019 were $1,294,593,571 and $1,344,002,957, respectively.


20

5. Capital Share Transactions

Transactions in shares of the fund were as follows:
 
Year ended
March 31, 2019
Year ended
March 31, 2018(1)
 
Shares
Amount
Shares
Amount
Investor Class/Shares Authorized
560,000,000

 
530,000,000

 
Sold
12,960,930

$
100,472,856

13,655,808

$
126,053,160

Issued in reinvestment of distributions
13,390,594

87,258,443

10,565,708

91,480,014

Redeemed
(21,626,746
)
(169,911,632
)
(26,621,472
)
(243,195,829
)
 
4,724,778

17,819,667

(2,399,956
)
(25,662,655
)
I Class/Shares Authorized
380,000,000

 
380,000,000

 
Sold
16,376,077

131,475,018

21,037,259

195,108,451

Issued in reinvestment of distributions
6,588,560

43,572,942

6,236,884

54,538,296

Redeemed
(20,796,591
)
(161,888,831
)
(28,934,108
)
(265,355,798
)
 
2,168,046

13,159,129

(1,659,965
)
(15,709,051
)
Y Class/Shares Authorized
70,000,000

 
50,000,000

 
Sold
410,456

3,366,503

14,955

132,166

Issued in reinvestment of distributions
47,604

313,187

79

690

Redeemed
(8,162
)
(62,476
)
—

—

 
449,898

3,617,214

15,034

132,856

A Class/Shares Authorized
95,000,000

 
90,000,000

 
Sold
1,783,250

14,726,695

2,274,718

20,516,603

Issued in reinvestment of distributions
2,092,454

13,420,518

1,820,578

15,570,340

Redeemed
(5,649,426
)
(45,125,429
)
(5,633,747
)
(51,264,045
)
 
(1,773,722
)
(16,978,216
)
(1,538,451
)
(15,177,102
)
C Class/Shares Authorized
10,000,000

 
10,000,000

 
Sold
93,544

759,030

212,947

1,862,168

Issued in reinvestment of distributions
66,512

401,065

38,700

317,339

Redeemed
(102,899
)
(754,791
)
(59,921
)
(520,640
)
 
57,157

405,304

191,726

1,658,867

R Class/Shares Authorized
10,000,000

 
10,000,000

 
Sold
107,250

839,924

111,097

1,011,895

Issued in reinvestment of distributions
75,253

477,398

48,594

414,021

Redeemed
(71,943
)
(545,740
)
(126,291
)
(1,137,625
)
 
110,560

771,582

33,400

288,291

R5 Class/Shares Authorized
30,000,000

 
50,000,000

 
Sold
70,749

525,409

537

5,000

Issued in reinvestment of distributions
115

760

78

684

Redeemed
(2,627
)
(18,978
)
—

—

 
68,237

507,191

615

5,684

R6 Class/Shares Authorized
250,000,000

 
150,000,000

 
Sold
12,059,717

98,464,833

14,365,364

132,796,610

Issued in reinvestment of distributions
6,859,222

45,390,116

3,725,552

32,586,147

Redeemed
(6,453,444
)
(50,532,710
)
(4,765,877
)
(43,941,989
)
 
12,465,495

93,322,239

13,325,039

121,440,768

Net increase (decrease)
18,270,449

$
112,624,110

7,967,442

$
66,977,658


(1)
April 10, 2017 (commencement of sale) through March 31, 2018 for the Y Class and R5 Class.


21

6. Affiliated Company Transactions

If a fund's holding represents ownership of 5% or more of the voting securities of a company, the company is affiliated as defined in the 1940 Act. A summary of transactions for each company which is or was an affiliate at or during the period ended March 31, 2019 follows (amounts in thousands):
Company
Beginning Value
Purchase
Cost
Sales
Cost
Change in Net Unrealized Appreciation (Depreciation)
Ending
Value
Ending
Shares
Net Realized
Gain (Loss)
Income
InnerWorkings, Inc.(1)(2)
$
17,331

$
10,103

$
9,623

$
(9,004
)
(2 
) 
(2 
) 
$
(2,833
)
—

MedEquities Realty Trust, Inc.(2)
11,403

4,854

12,771

2,161

(2) 

(2) 

(1,048
)
$
468

 
$
28,734

$
14,957

$
22,394

$
(6,843
)
—

—

$
(3,881
)
$
468

(1)
Non-income producing.
(2)
Company was not an affiliate at March 31, 2019.

7. 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
$
1,321,225,898

$
2,726,678

—

Temporary Cash Investments
16,307

35,381,764

—

 
$
1,321,242,205

$
38,108,442

—

Other Financial Instruments
 
 
 
Forward Foreign Currency Exchange Contracts
—

$
31,388

—



22

8. Derivative Instruments

Foreign Currency Risk — The fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The value of foreign investments held by a fund may be significantly affected by changes in foreign currency exchange rates. The dollar value of a foreign security generally decreases when the value of the dollar rises against the foreign currency in which the security is denominated and tends to increase when the value of the dollar declines against such foreign currency. A fund may enter into forward foreign currency exchange contracts to reduce a fund's exposure to foreign currency exchange rate fluctuations. The net U.S. dollar value of foreign currency underlying all contractual commitments held by a fund and the resulting unrealized appreciation or depreciation are determined daily. Realized gain or loss is recorded upon the termination of the contract. Net realized and unrealized gains or losses occurring during the holding period of forward foreign currency exchange contracts are a component of net realized gain (loss) on forward foreign currency exchange contract transactions and change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts, respectively. A fund bears the risk of an unfavorable change in the foreign currency exchange rate underlying the forward contract. Additionally, losses, up to the fair value, may arise if the counterparties do not perform under the contract terms. The fund's average U.S. dollar exposure to foreign currency risk derivative instruments held during the period was $25,843,019.
 
The value of foreign currency risk derivative instruments as of March 31, 2019, is disclosed on the Statement of Assets and Liabilities as an asset of $31,388 in unrealized appreciation on forward foreign currency exchange contracts. For the year ended March 31, 2019, the effect of foreign currency risk derivative instruments on the Statement of Operations was $202,579 in net realized gain (loss) on forward foreign currency exchange contract transactions and $31,388 in change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts.

9. Risk Factors

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.

10. Federal Tax Information

The tax character of distributions paid during the years ended March 31, 2019 and March 31, 2018 were as follows:
 
2019
2018
Distributions Paid From
 
 
Ordinary income
$
77,222,824

$
83,250,525

Long-term capital gains
$
126,820,134

$
124,882,049


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.
 

23

As of period end, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments
$
1,414,371,508

Gross tax appreciation of investments
$
87,099,629

Gross tax depreciation of investments
(142,120,490
)
Net tax appreciation (depreciation) of investments
$
(55,020,861
)
Undistributed ordinary income
$
2,442,909

Accumulated long-term gains
$
3,522,003

Post-October capital loss deferral
$
(5,642,887
)

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.

Loss deferrals 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.
 


24

Financial Highlights
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
Per-Share Data
Ratios and Supplemental Data
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment Income (Loss)(1)
Net
Realized and Unrealized
Gain (Loss)
Total
From Investment Operations
Net Investment Income
Net Realized Gains
Total Distributions
Net Asset
Value, End
of Period
Total
Return(2)
Operating Expenses
Net
Investment Income
(Loss)
Portfolio Turnover
Rate
Net Assets,
End of Period
(in thousands)
Investor Class
 
 
 
 
 
 
 
 
 
 
 
2019
$8.64
0.06
(0.44)
(0.38)
(0.05)
(1.16)
(1.21)
$7.05
(3.15)%
1.25%
0.68%
90%

$594,650

2018
$9.39
0.04
0.47
0.51
(0.03)
(1.23)
(1.26)
$8.64
5.41%
1.26%
0.42%
90%

$687,877

2017
$7.55
0.04
2.28
2.32
(0.06)
(0.42)
(0.48)
$9.39
31.15%
1.25%
0.47%
90%

$770,415

2016
$9.16
0.04
(0.59)
(0.55)
(0.03)
(1.03)
(1.06)
$7.55
(6.25)%
1.26%
0.43%
95%

$656,974

2015
$9.88
0.06
0.48
0.54
(0.05)
(1.21)
(1.26)
$9.16
6.18%
1.24%
0.66%
78%

$815,048

I Class
 
 
 
 
 
 
 
 
 
 
 
2019
$8.72
0.07
(0.44)
(0.37)
(0.06)
(1.16)
(1.22)
$7.13
(2.95)%
1.05%
0.88%
90%

$352,298

2018
$9.47
0.06
0.46
0.52
(0.04)
(1.23)
(1.27)
$8.72
5.57%
1.06%
0.62%
90%

$411,986

2017
$7.61
0.06
2.29
2.35
(0.07)
(0.42)
(0.49)
$9.47
31.43%
1.05%
0.67%
90%

$463,119

2016
$9.22
0.05
(0.58)
(0.53)
(0.05)
(1.03)
(1.08)
$7.61
(6.02)%
1.06%
0.63%
95%

$517,247

2015
$9.94
0.08
0.48
0.56
(0.07)
(1.21)
(1.28)
$9.22
6.35%
1.04%
0.86%
78%

$599,932

Y Class
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.73
0.10
(0.45)
(0.35)
(0.08)
(1.16)
(1.24)
$7.14
(2.80)%
0.90%
1.03%
90%

$3,320

2018(3)
$9.32
0.08
0.61
0.69
(0.05)
(1.23)
(1.28)
$8.73
7.43%
0.91%(4)
0.95%(4)
90%(5)

$131



For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
Per-Share Data
Ratios and Supplemental Data
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment Income (Loss)(1)
Net
Realized and Unrealized
Gain (Loss)
Total
From Investment Operations
Net Investment Income
Net Realized Gains
Total Distributions
Net Asset
Value, End
of Period
Total
Return(2)
Operating Expenses
Net
Investment Income
(Loss)
Portfolio Turnover
Rate
Net Assets,
End of Period
(in thousands)
A Class
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.54
0.03
(0.42)
(0.39)
(0.03)
(1.16)
(1.19)
$6.96
(3.32)%
1.50%
0.43%
90%

$82,755

2018
$9.31
0.01
0.46
0.47
(0.01)
(1.23)
(1.24)
$8.54
5.02%
1.51%
0.17%
90%

$116,763

2017
$7.49
0.02
2.26
2.28
(0.04)
(0.42)
(0.46)
$9.31
30.82%
1.50%
0.22%
90%

$141,505

2016
$9.09
0.01
(0.57)
(0.56)
(0.01)
(1.03)
(1.04)
$7.49
(6.41)%
1.51%
0.18%
95%

$142,568

2015
$9.81
0.04
0.48
0.52
(0.03)
(1.21)
(1.24)
$9.09
5.96%
1.49%
0.41%
78%

$384,891

C Class
2019
$8.18
(0.02)
(0.43)
(0.45)
—
(1.16)
(1.16)
$6.57
(4.19)%
2.25%
(0.32)%
90%

$2,536

2018
$9.01
(0.05)
0.45
0.40
—
(1.23)
(1.23)
$8.18
4.41%
2.26%
(0.58)%
90%

$2,688

2017
$7.29
(0.05)
2.20
2.15
(0.01)
(0.42)
(0.43)
$9.01
29.78%
2.25%
(0.53)%
90%

$1,234

2016
$8.93
(0.04)
(0.57)
(0.61)
—
(1.03)
(1.03)
$7.29
(7.13)%
2.26%
(0.57)%
95%

$265

2015
$9.71
(0.03)
0.47
0.44
(0.01)
(1.21)
(1.22)
$8.93
5.14%
2.24%
(0.34)%
78%

$138

R Class
2019
$8.50
0.02
(0.43)
(0.41)
(0.01)
(1.16)
(1.17)
$6.92
(3.58)%
1.75%
0.18%
90%

$3,437

2018
$9.28
(0.01)
0.46
0.45
—
(1.23)
(1.23)
$8.50
4.82%
1.76%
(0.08)%
90%

$3,284

2017
$7.48
—(6)
2.25
2.25
(0.03)
(0.42)
(0.45)
$9.28
30.41%
1.75%
(0.03)%
90%

$3,275

2016
$9.09
—(6)
(0.58)
(0.58)
—
(1.03)
(1.03)
$7.48
(6.65)%
1.76%
(0.07)%
95%

$2,346

2015
$9.83
0.02
0.47
0.49
(0.02)
(1.21)
(1.23)
$9.09
5.65%
1.74%
0.16%
78%

$2,138

R5 Class
2019
$8.73
0.11
(0.48)
(0.37)
(0.06)
(1.16)
(1.22)
$7.14
(2.92)%
1.05%
0.88%
90%

$491

2018(3)
$9.32
0.06
0.62
0.68
(0.04)
(1.23)
(1.27)
$8.73
7.32%
1.06%(4)
0.65%(4)
90%(5)

$5



For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
Per-Share Data
Ratios and Supplemental Data
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment Income (Loss)(1)
Net
Realized and Unrealized
Gain (Loss)
Total
From Investment Operations
Net Investment Income
Net Realized Gains
Total Distributions
Net Asset
Value, End
of Period
Total
Return(2)
Operating Expenses
Net
Investment Income
(Loss)
Portfolio Turnover
Rate
Net Assets,
End of Period
(in thousands)
R6 Class
2019
$8.72
0.09
(0.44)
(0.35)
(0.08)
(1.16)
(1.24)
$7.13
(2.80)%
0.90%
1.03%
90%

$316,502

2018
$9.47
0.07
0.47
0.54
(0.06)
(1.23)
(1.29)
$8.72
5.73%
0.91%
0.77%
90%

$278,351

2017
$7.62
0.07
2.28
2.35
(0.08)
(0.42)
(0.50)
$9.47
31.45%
0.90%
0.82%
90%

$176,015

2016
$9.23
0.07
(0.59)
(0.52)
(0.06)
(1.03)
(1.09)
$7.62
(5.86)%
0.91%
0.78%
95%

$67,173

2015
$9.94
0.11
0.48
0.59
(0.09)
(1.21)
(1.30)
$9.23
6.62%
0.89%
1.01%
78%

$39,898

Notes to Financial Highlights
 
 
(1)
Computed using average shares outstanding throughout the period.
(2)
Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)
April 10, 2017 (commencement of sale) through March 31, 2018.
(4)
Annualized.
(5)
Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2018.
(6)
Per-share amount was less than $0.005.

See Notes to Financial Statements.


Report of Independent Registered Public Accounting Firm

To the shareholders and the Board of Directors of American Century Capital Portfolios, Inc.:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Small Cap Value Fund, one of the portfolios constituting the American Century Capital Portfolios, Inc. (the “Fund”), as of March 31, 2019, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Small Cap Value Fund of the American Century Capital Portfolios, Inc. as of March 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
DELOITTE & TOUCHE LLP
Kansas City, Missouri
May 16, 2019

We have served as the auditor of one or more American Century investment companies since 1997.

28

Management

The Board of Directors

The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire by December 31 of the year in which they reach their 75th birthday.
Mr. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Director
Other Directorships Held During Past 5 Years
Independent Directors


Thomas W. Bunn (1953)
Director
Since 2017
Retired
67
SquareTwo Financial; Barings (formerly Babson Capital Funds Trust) (2013 to 2016)
Chris H. Cheesman
(1962)
Director
Since 2019
Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018)
67
None
Barry Fink
(1955)
Director
Since 2012 (independent since 2016)
Retired
67
None
Rajesh K. Gupta
(1960)
Director
Since 2019
Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to Present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019)
67
None


29

Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Director
Other Directorships Held During Past 5 Years
Independent Directors


Lynn Jenkins
(1963)
Director
Since 2019
United States Representative, U.S. House of Representatives (2009 to 2018)
67
MGP Ingredients, Inc.
Jan M. Lewis
(1957)
Director
Since 2011
Retired
67
None
John R. Whitten
(1946)
Director
Since 2008
Retired
67
Rudolph Technologies, Inc.
Stephen E. Yates
(1948)
Director and Chairman of the Board
Since 2012 (Chairman since 2018)
Retired
72
None
Interested Director


Jonathan S. Thomas
(1963)
Director and President
Since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
117
BioMed Valley Discoveries, Inc.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.

30

Officers

The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for 16 (in the case of Robert J. Leach, 15) investment companies in the American Century family of funds, unless otherwise noted. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Offices with the Funds
Principal Occupation(s) During the Past Five Years
Jonathan S. Thomas
(1963)
Director and President since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
R. Wes Campbell
(1974)
Chief Financial Officer and Treasurer since 2018
Investment Operations and Investment Accounting, ACS (2000 to present)
Amy D. Shelton
(1964)
Chief Compliance Officer and Vice President since 2014
Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present); Vice President, Client Interactions and Marketing, ACIS (2013 to 2014). Also serves as Vice President, ACIS
Charles A. Etherington
(1957)
General Counsel since 2007 and Senior Vice President since 2006
Attorney, ACC (1994 to present); Vice President, ACC (2005 to present); General Counsel, ACC (2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS
C. Jean Wade
(1964)
Vice President since 2012
Senior Vice President, ACS (2017 to present); Vice President, ACS (2000 to 2017)
Robert J. Leach
(1966)
Vice President since 2006
Vice President, ACS (2000 to present)
David H. Reinmiller
(1963)
Vice President since 2000
Attorney, ACC (1994 to present). Also serves as Vice President, ACIM and ACS
Ward D. Stauffer
(1960)
Secretary since 2005
Attorney, ACC (2003 to present)



31

Additional Information

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 the "About Us" page of American Century Investments’ website at americancentury.com and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.


Quarterly Portfolio Disclosure

The 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 on Form N-Q or as an exhibit to its reports on Form N-PORT. The fund’s Forms N-Q and Form N-PORT reports are available on the SEC’s website at sec.gov. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.

32

Other Tax Information

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund hereby designates up to the maximum amount allowable as qualified dividend income for the fiscal year ended March 31, 2019.

For corporate taxpayers, the fund hereby designates $18,363,209, or up to the maximum amount allowable, of ordinary income distributions paid during the fiscal year ended March 31, 2019 as qualified for the corporate dividends received deduction.

The fund hereby designates $67,389,949 as qualified short-term capital gain distributions for purposes of Internal Revenue Code Section 871 for the fiscal year ended March 31, 2019.

The fund hereby designates $130,507,825, or up to the maximum amount allowable, as long-term capital gain distributions (20% rate gain distributions) for the fiscal year ended March 31, 2019.

The fund utilized earnings and profits of $6,451,018 distributed to shareholders on redemption of shares as part of the dividends paid deduction (tax equalization).

33

Notes

34

Notes

35

Notes

36

Notes

37

Notes

38

Notes

39

Notes


40




acihorizblkd42.jpg
 
 
 
 
Contact Us
americancentury.com
 
Automated Information Line
1-800-345-8765
 
Investor Services Representative
1-800-345-2021
or 816-531-5575
 
Investors Using Advisors
1-800-378-9878
 
Business, Not-For-Profit, Employer-Sponsored Retirement Plans
1-800-345-3533
 
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies
1-800-345-6488
 
Telecommunications Relay Service for the Deaf
711
 
 
 
 
American Century Capital Portfolios, Inc.
 
 
 
 
Investment Advisor:
American Century Investment Management, Inc.
Kansas City, Missouri
 
 
 
 
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
 
 
 
 
©2019 American Century Proprietary Holdings, Inc. All rights reserved.
CL-ANN-92272 1905
 





acihorizblkd42.jpg
                  

 
 
 
Annual Report
 
 
 
March 31, 2019
 
 
 
Value Fund
 
Investor Class (TWVLX)
 
I Class (AVLIX)
 
Y Class (AVUYX)
 
A Class (TWADX)
 
C Class (ACLCX)
 
R Class (AVURX)
 
R5 Class (AVUGX)
 
R6 Class (AVUDX)















Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.

You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.





Table of Contents
President’s Letter
2

Performance
3

Portfolio Commentary

Fund Characteristics

Shareholder Fee Example

Schedule of Investments

Statement of Assets and Liabilities

Statement of Operations

Statement of Changes in Net Assets

Notes to Financial Statements

Financial Highlights

Report of Independent Registered Public Accounting Firm

Management

Additional Information






















Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.


President’s Letter

jthomasrev0514.jpg Jonathan Thomas

Dear Investor:

Thank you for reviewing this annual report for the period ended March 31, 2019. Annual reports help convey important information about fund returns, including market factors that affected performance during the reporting period. For additional, updated investment and market insights, we encourage you to visit our website, americancentury.com.

Markets Ended Roller-Coaster Period on Upswing

For the first half of the period, U.S. stocks climbed higher, while bond returns headed lower. Robust economic growth, bolstered by federal tax and regulatory reform, and record corporate earnings results fueled risk-on sentiment that drove stock prices higher. Meanwhile, the combination of strong economic data, the Federal Reserve’s (Fed’s) ongoing rate-hike campaign and an uptick in inflation pushed investment-grade bond returns lower.

Market trends began changing in late 2018. Mounting investor concerns about slowing global economic and earnings growth, U.S.-China trade tensions and rising interest rates triggered widespread volatility. Stock prices plunged as investors sought safe-haven investments, including U.S. Treasuries. Furthermore, the Fed issued another rate hike in December, its fourth of the year, and maintained its hawkish outlook. Investors feared the December rate increase and the Fed’s plans for two more rate hikes in 2019 were too aggressive, and risk-off investing remained in favor.

January brought a renewed sense of stability to the markets. Investors’ concerns about growth and trade eased, and the Fed changed course, pausing its rate-hike campaign amid moderating global growth and inflation. Valuations appeared attractive after the late-2018 sell-off, and risk-on investing resumed. In March, the Fed held rates steady again, hinting additional tightening was off the table for 2019. This news drove stock and bond returns higher and left both asset classes on an upward track to end the period. Overall, stocks (S&P 500 Index) overcame their late-2018 nosedive to gain 9.50% for the period. Bonds (Bloomberg Barclays U.S. Aggregate Bond Index) bounced back from losses early in the period to return 4.48%.

We expect volatility to remain a formidable factor as investors react to global growth trends, central bank policy and geopolitical developments. We believe this scenario underscores the importance of using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.

Sincerely,
image48a01.jpg
Jonathan Thomas
President and Chief Executive Officer
American Century Investments


2

Performance
Total Returns as of March 31, 2019
 
 
 
 
 
 
Average Annual Returns
 
 
Ticker Symbol
1 year
5 years
10 years
Since Inception
Inception Date
Investor Class
TWVLX
4.01%
6.67%
12.89%
—
9/1/93
Russell 1000 Value Index
—
5.67%
7.72%
14.51%
—
—
S&P 500 Index
—
9.50%
10.90%
15.91%
—
—
I Class
AVLIX
4.21%
6.89%
13.10%
—
7/31/97
Y Class
AVUYX
4.36%
—
—
4.21%
4/10/17
A Class
TWADX
 
 
 

10/2/96
No sales charge
 
3.63%
6.41%
12.60%
—
 
With sales charge
 
-2.35%
5.15%
11.94%
—
 
C Class
ACLCX
2.92%
5.59%
11.76%
—
6/4/01
R Class
AVURX
3.50%
6.14%
12.33%
—
7/29/05
R5 Class
AVUGX
4.21%
—
—
4.06%
4/10/17
R6 Class
AVUDX
4.36%
7.06%
—
8.05%
7/26/13
Average annual returns since inception are presented when ten years of performance history is not available.

Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 5.75% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.


















Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

3

Growth of $10,000 Over 10 Years
$10,000 investment made March 31, 2009
Performance for other share classes will vary due to differences in fee structure.

chart-eed9acdf36755aef817.jpg
Value on March 31, 2019
 
Investor Class — $33,634
 
 
Russell 1000 Value Index — $38,803
 
 
S&P 500 Index — $43,809
 

Total Annual Fund Operating Expenses
Investor Class
I Class
Y Class
A Class
C Class
R Class
R5 Class
R6 Class
0.98%
0.78%
0.63%
1.23%
1.98%
1.48%
0.78%
0.63%
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.









Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

4

Portfolio Commentary
 

Portfolio Managers: Michael Liss, Kevin Toney, Phil Davidson, Brian Woglom and Philip Sundell

Effective April 2019, portfolio manager Dan Gruemmer will leave the fund's management team.

Performance Summary

Value returned 4.01%* for the fiscal year ended March 31, 2019, compared with the 5.67% return of its benchmark, the Russell 1000 Value Index.

Value stocks underperformed growth stocks across the capitalization spectrum during the
12-month period. Within the Russell 1000 Value Index, utilities, real estate and health care led sector performance. The weakest sectors were financials and materials. The fund recorded positive absolute contributions from most sectors, led by health care. Financials, energy and utilities were the largest absolute detractors.

The fund’s underperformance relative to the benchmark was headed by stock selection in the energy sector. An underweight allocation in utilities relative to the benchmark and stock decisions in the sector also hampered performance. Stock selection in the consumer staples sector was the top contributor. Overweighting health care and stock choices in the sector were also beneficial.

Energy Holdings Led Detractors

Stock decisions in the energy equipment and services industry drove underperformance in the energy sector. Schlumberger was a significant detractor. The recovery in the oil field services markets has perpetually disappointed investor expectations. In particular, the non-U.S. oil field services markets (a historic stronghold for Schlumberger) have failed to stage a meaningful recovery. As a result, industry participants have been bidding contracts aggressively in an attempt to maintain operations, which has weighed on revenue growth and profitability of Schlumberger and its peers. We still think Schlumberger is the best oil field services company, and we maintain an overweight position. Our position in Anadarko Petroleum, a global exploration and production company, detracted from relative performance. Anadarko’s stock was negatively affected by lower commodity prices in 2018, which weighed on the free cash flow and return on invested capital of the business. We purchased additional shares as the stock price fell. Due to pipeline constraints, investors became concerned over Cimarex Energy’s ability to efficiently transport oil out of the Permian Basin. We believe those concerns were overstated and maintained our position.

Positioning in the utilities sector was a major source of weakness versus the benchmark. The stock of electric utility PG&E declined significantly. PG&E filed for bankruptcy protection due to the company’s potential liability stemming from wildfires in California. We exited our position on news of the bankruptcy.

Other significant detractors included Invesco. Asset management stocks underperformed late in 2018 due to weaker markets and continued valuation multiple compression. In addition, Invesco experienced an acceleration of net outflows and announced an expensive acquisition of OppenheimerFunds. The stock of General Electric declined due to significant losses in the company’s power business, a dividend cut and additional litigation risks. The stock regained some of its lost ground in the first quarter of 2019, and we remained invested given its high-quality assets in aviation and health care. We also believe General Electric's new CEO can lead a faster-than-expected turnaround.

*All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the index, other share classes may not. See page 3 for returns for all share classes.

5

Consumer Staples Benefited Performance

Holdings in household products industry led performance in the consumer staples sector. Household and personal care giant The Procter & Gamble Co. rose after the company reported higher organic growth. It stabilized and improved market share in many key products.

An overweight allocation among pharmaceutical stocks relative to the benchmark benefited performance. The stock of Merck & Co. rose as the pharmaceutical company reported solid quarterly results, raised its dividend and announced a share buyback. Competitor AstraZeneca announced a lung cancer trial failure, which cemented Merck’s dominance in the lung cancer space with its drug, Keytruda. Pharmaceutical company Pfizer has been supported by solid data on Tafamidis, its cardiomyopathy drug, and by its generally strong drug pipeline. Hospital company LifePoint Health outperformed on the announcement that it would be acquired for a significant premium by private equity firm Apollo Global Management. We eliminated the position after the stock price rose.

Other major contributors included Advance Auto Parts. The company reported better-than-expected quarterly results and raised its full-year guidance due to margin improvement and stronger-than-expected same-store sales trends. The company’s turnaround plan is starting to show signs of effectiveness. The stock of Occidental Petroleum, a large integrated energy company with upstream, midstream and chemical operations, appreciated meaningfully. Logistical constraints in the Permian Basin benefited the profitability of the company’s midstream segment. Additionally, infrastructure investments in 2017 and early 2018 wound down, providing higher levels of free cash flows and improving Occidental’s ability to organically cover dividends.

Portfolio Positioning

The portfolio seeks to invest in companies where we believe the valuation does not reflect the quality and normal earnings power of the company. Our process is based on individual security selection, but broad themes have emerged.

Energy remained a top overweight at the end of the period. When oil prices fell in the fourth quarter of 2018, we added to our energy holdings as their valuations became more attractive. The portfolio was overweight the financials sector, with strong risks/rewards in the banking and capital markets industries. We also had a modest overweight to the capital markets industry, where we have taken advantage of attractive value opportunities as asset managers underperformed. We have identified stocks with compelling risk/reward profiles within the health care sector, particularly in the pharmaceuticals and health care equipment and supplies industries.

The portfolio ended the period underweight in utilities and real estate. It remains difficult for us to find higher-quality utilities and real estate stocks selling at attractive valuations.



6

Fund Characteristics 
MARCH 31, 2019
Top Ten Holdings
% of net assets
JPMorgan Chase & Co.
3.3%
U.S. Bancorp
2.7%
AT&T, Inc.
2.6%
Pfizer, Inc.
2.6%
Bank of America Corp.
2.5%
Wells Fargo & Co.
2.5%
Procter & Gamble Co. (The)
2.5%
Johnson & Johnson
2.5%
General Electric Co.
2.4%
Berkshire Hathaway, Inc.*
2.4%
*Includes all classes of the issuer held by the fund.
 
 
 
Top Five Industries
% of net assets
Banks
15.1%
Oil, Gas and Consumable Fuels
10.4%
Pharmaceuticals
9.1%
Capital Markets
5.1%
Diversified Telecommunication Services
4.8%
 
 
Types of Investments in Portfolio
% of net assets
Domestic Common Stocks
90.0%
Foreign Common Stocks*
7.4%
Total Common Stocks
97.4%
Temporary Cash Investments
2.4%
Other Assets and Liabilities
0.2%
*Includes depositary shares, dual listed securities and foreign ordinary shares.


7

Shareholder Fee Example

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.

The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from October 1, 2018 to March 31, 2019.

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 a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.

Hypothetical Example for Comparison Purposes

The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


8



Beginning
Account Value
10/1/18
Ending
Account Value
3/31/19
Expenses Paid
During Period(1)
10/1/18 - 3/31/19
 
Annualized
Expense Ratio(1)
Actual
 
 
 
 
Investor Class
$1,000
$961.20
$4.79
0.98%
I Class
$1,000
$962.20
$3.82
0.78%
Y Class
$1,000
$962.90
$3.08
0.63%
A Class
$1,000
$959.90
$6.01
1.23%
C Class
$1,000
$955.80
$9.65
1.98%
R Class
$1,000
$958.90
$7.23
1.48%
R5 Class
$1,000
$962.20
$3.82
0.78%
R6 Class
$1,000
$962.90
$3.08
0.63%
Hypothetical
 
 
 
 
Investor Class
$1,000
$1,020.05
$4.94
0.98%
I Class
$1,000
$1,021.04
$3.93
0.78%
Y Class
$1,000
$1,021.79
$3.18
0.63%
A Class
$1,000
$1,018.80
$6.19
1.23%
C Class
$1,000
$1,015.06
$9.95
1.98%
R Class
$1,000
$1,017.55
$7.44
1.48%
R5 Class
$1,000
$1,021.04
$3.93
0.78%
R6 Class
$1,000
$1,021.79
$3.18
0.63%
(1)
Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 182, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.

9

Schedule of Investments

MARCH 31, 2019
 
Shares
Value
COMMON STOCKS — 97.4%
 
 
Air Freight and Logistics — 0.3%
 
 
United Parcel Service, Inc., Class B
87,540

$
9,781,720

Airlines — 0.4%
 
 
Southwest Airlines Co.
213,100

11,062,021

Auto Components — 0.8%
 
 
BorgWarner, Inc.
331,210

12,721,776

Delphi Technologies plc
612,332

11,793,514

 
 
24,515,290

Automobiles — 1.2%
 
 
General Motors Co.
562,319

20,862,035

Honda Motor Co. Ltd.
558,800

15,100,659

 
 
35,962,694

Banks — 15.1%
 
 
Bank of America Corp.
2,724,520

75,169,507

BB&T Corp.
662,390

30,821,007

BOK Financial Corp.
71,686

5,845,993

Comerica, Inc.
205,067

15,035,512

JPMorgan Chase & Co.
985,421

99,754,168

M&T Bank Corp.
122,720

19,269,494

PNC Financial Services Group, Inc. (The)
330,773

40,572,616

U.S. Bancorp
1,647,582

79,396,977

UMB Financial Corp.
171,656

10,992,850

Wells Fargo & Co.
1,539,058

74,367,283

 
 
451,225,407

Beverages — 0.5%
 
 
PepsiCo, Inc.
121,440

14,882,472

Building Products — 1.0%
 
 
Johnson Controls International plc
772,269

28,527,617

Capital Markets — 5.1%
 
 
Ameriprise Financial, Inc.
154,390

19,777,359

Bank of New York Mellon Corp. (The)
274,580

13,847,069

BlackRock, Inc.
72,360

30,924,493

Franklin Resources, Inc.
401,897

13,318,867

Invesco Ltd.
1,112,911

21,490,311

Northern Trust Corp.
283,287

25,611,978

State Street Corp.
408,555

26,887,005

 
 
151,857,082

Communications Equipment — 2.3%
 
 
Cisco Systems, Inc.
1,269,349

68,532,153

Containers and Packaging — 1.1%
 
 
Packaging Corp. of America
79,170

7,867,915

Sonoco Products Co.
216,889

13,345,180


10

 
Shares
Value
WestRock Co.
272,110

$
10,435,418

 
 
31,648,513

Diversified Financial Services — 2.4%
 
 
Berkshire Hathaway, Inc., Class A(1) 
159

47,893,185

Berkshire Hathaway, Inc., Class B(1) 
115,620

23,226,902

 
 
71,120,087

Diversified Telecommunication Services — 4.8%
 
 
AT&T, Inc.
2,478,450

77,724,192

Verizon Communications, Inc.
1,091,300

64,528,569

 
 
142,252,761

Electric Utilities — 0.4%
 
 
Edison International
189,776

11,750,930

Electrical Equipment — 1.6%
 
 
Hubbell, Inc.
233,481

27,546,088

nVent Electric plc
747,280

20,161,615

 
 
47,707,703

Electronic Equipment, Instruments and Components — 1.1%
 
 
Keysight Technologies, Inc.(1) 
84,067

7,330,643

TE Connectivity Ltd.
315,199

25,452,319

 
 
32,782,962

Energy Equipment and Services — 4.4%
 
 
Baker Hughes a GE Co.
990,919

27,468,274

Halliburton Co.
944,850

27,684,105

National Oilwell Varco, Inc.
509,723

13,579,021

Schlumberger Ltd.
1,412,591

61,546,590

 
 
130,277,990

Equity Real Estate Investment Trusts (REITs) — 0.6%
 
 
Weyerhaeuser Co.
676,430

17,817,166

Food and Staples Retailing — 1.1%
 
 
Walmart, Inc.
350,281

34,162,906

Food Products — 3.6%
 
 
Conagra Brands, Inc.
430,133

11,931,889

Kellogg Co.
443,204

25,431,046

Mondelez International, Inc., Class A
929,096

46,380,472

Orkla ASA
2,933,510

22,515,883

 
 
106,259,290

Health Care Equipment and Supplies — 4.3%
 
 
Abbott Laboratories
234,110

18,714,753

Medtronic plc
541,800

49,347,144

Siemens Healthineers AG
412,688

17,197,957

Zimmer Biomet Holdings, Inc.
328,373

41,933,232

 
 
127,193,086

Health Care Providers and Services — 3.3%
 
 
Cardinal Health, Inc.
773,460

37,242,099

Laboratory Corp. of America Holdings(1) 
53,850

8,237,973

McKesson Corp.
319,460

37,395,988


11

 
Shares
Value
Quest Diagnostics, Inc.
160,820

$
14,460,934

 
 
97,336,994

Health Care Technology — 0.3%
 
 
Cerner Corp.(1) 
176,930

10,122,165

Hotels, Restaurants and Leisure — 0.5%
 
 
Carnival Corp.
220,387

11,178,029

Sodexo SA
47,160

5,192,835

 
 
16,370,864

Household Products — 2.7%
 
 
Kimberly-Clark Corp.
47,640

5,902,596

Procter & Gamble Co. (The)
713,494

74,239,051

 
 
80,141,647

Industrial Conglomerates — 3.3%
 
 
General Electric Co.
7,121,394

71,142,726

Siemens AG
247,270

26,611,376

 
 
97,754,102

Insurance — 2.8%
 
 
Chubb Ltd.
287,493

40,272,020

MetLife, Inc.
424,528

18,072,157

Reinsurance Group of America, Inc.
137,529

19,526,367

Unum Group
207,080

7,005,516

 
 
84,876,060

Leisure Products — 0.2%
 
 
Mattel, Inc.(1) 
566,922

7,369,986

Machinery — 1.6%
 
 
Atlas Copco AB, B Shares
599,180

14,829,178

Cummins, Inc.
55,710

8,794,938

IMI plc
2,063,520

25,747,504

 
 
49,371,620

Metals and Mining — 0.6%
 
 
BHP Group Ltd.
615,870

16,831,613

Multiline Retail — 0.5%
 
 
Target Corp.
176,594

14,173,434

Oil, Gas and Consumable Fuels — 10.4%
 
 
Anadarko Petroleum Corp.
772,520

35,134,209

Apache Corp.
335,345

11,623,058

Chevron Corp.
475,867

58,617,297

Cimarex Energy Co.
373,603

26,114,850

ConocoPhillips
123,773

8,260,610

Devon Energy Corp.
1,065,655

33,632,072

EQT Corp.
771,841

16,007,982

Equitrans Midstream Corp.
469,856

10,233,464

Noble Energy, Inc.
1,360,360

33,641,703

Occidental Petroleum Corp.
338,783

22,427,434

Royal Dutch Shell plc, B Shares
768,650

24,307,386

TOTAL SA
539,244

29,954,505

 
 
309,954,570


12

 
Shares/Principal Amount
Value
Pharmaceuticals — 9.1%
 
 
Allergan plc
218,800

$
32,034,508

Johnson & Johnson
526,189

73,555,960

Merck & Co., Inc.
772,577

64,255,229

Pfizer, Inc.
1,809,123

76,833,454

Roche Holding AG
21,380

5,890,638

Teva Pharmaceutical Industries Ltd. ADR(1) 
1,180,692

18,513,251

 
 
271,083,040

Road and Rail — 1.0%
 
 
Heartland Express, Inc.
1,594,856

30,748,824

Semiconductors and Semiconductor Equipment — 3.6%
 
 
Applied Materials, Inc.
237,294

9,411,080

Intel Corp.
1,146,287

61,555,612

QUALCOMM, Inc.
394,814

22,516,242

Teradyne, Inc.
314,069

12,512,509

 
 
105,995,443

Software — 1.7%
 
 
Microsoft Corp.
50,392

5,943,232

Oracle Corp. (New York)
836,259

44,915,471

 
 
50,858,703

Specialty Retail — 1.0%
 
 
Advance Auto Parts, Inc.
176,116

30,033,062

Technology Hardware, Storage and Peripherals — 0.5%
 
 
HP, Inc.
705,735

13,712,431

Textiles, Apparel and Luxury Goods — 1.2%
 
 
Ralph Lauren Corp.
95,400

12,371,472

Tapestry, Inc.
726,047

23,589,267

 
 
35,960,739

Trading Companies and Distributors — 1.0%
 
 
MSC Industrial Direct Co., Inc., Class A
362,009

29,941,764

TOTAL COMMON STOCKS
(Cost $2,290,849,670)
 
2,901,956,911

TEMPORARY CASH INVESTMENTS — 2.4%
 
 
Federal Home Loan Bank Discount Notes, 2.30%, 4/1/19(2)
$
50,000,000

50,000,000

Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 0.125% - 2.875%, 9/30/19 - 2/15/44, valued at $19,796,289), in a joint trading account at 2.35%, dated 3/29/19, due 4/1/19 (Delivery value $19,404,626)
 
19,400,827

Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.875%, 10/31/23, valued at $3,309,693), at 1.25%, dated 3/29/19, due 4/1/19 (Delivery value $3,242,338)
 
3,242,000

State Street Institutional U.S. Government Money Market Fund, Premier Class
10,896

10,896

TOTAL TEMPORARY CASH INVESTMENTS
(Cost $72,653,723)
 
72,653,723

TOTAL INVESTMENT SECURITIES — 99.8%
(Cost $2,363,503,393)
 
2,974,610,634

OTHER ASSETS AND LIABILITIES — 0.2%
 
5,358,038

TOTAL NET ASSETS — 100.0%
 
$
2,979,968,672


13

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Currency Purchased
  Currency Sold
Counterparty
Settlement Date
Unrealized Appreciation
(Depreciation)
USD
12,381,261

AUD
17,404,486

Morgan Stanley
6/28/19
$
3,363

USD
4,411,112

CHF
4,339,873

UBS AG
6/28/19
16,779

EUR
1,488,634

USD
1,692,931

Credit Suisse AG
6/28/19
(10,755
)
USD
61,585,835

EUR
53,979,100

Credit Suisse AG
6/28/19
588,736

USD
37,293,513

GBP
28,134,390

JPMorgan Chase Bank N.A.
6/28/19
491,033

JPY
53,435,250

USD
487,191

Bank of America N.A.
6/28/19
(1,767
)
USD
11,848,136

JPY
1,295,019,000

Bank of America N.A.
6/28/19
83,735

USD
353,447

JPY
38,766,750

Bank of America N.A.
6/28/19
1,277

USD
17,166,388

NOK
145,929,747

Goldman Sachs & Co.
6/28/19
190,358

USD
11,403,944

SEK
104,571,890

Goldman Sachs & Co.
6/28/19
82,822

 
 
 
 
 
 
$
1,445,581


NOTES TO SCHEDULE OF INVESTMENTS
ADR
-
American Depositary Receipt
AUD
-
Australian Dollar
CHF
-
Swiss Franc
EUR
-
Euro
GBP
-
British Pound
JPY
-
Japanese Yen
NOK
-
Norwegian Krone
SEK
-
Swedish Krona
USD
-
United States Dollar
(1)
Non-income producing.
(2)
The rate indicated is the yield to maturity at purchase.
    

See Notes to Financial Statements.


14

Statement of Assets and Liabilities
MARCH 31, 2019
 
Assets
 
Investment securities, at value (cost of $2,363,503,393)
$
2,974,610,634

Foreign currency holdings, at value (cost of $506)
505

Receivable for investments sold
3,805,308

Receivable for capital shares sold
2,352,187

Unrealized appreciation on forward foreign currency exchange contracts
1,458,103

Dividends and interest receivable
5,860,661

 
2,988,087,398

 
 
Liabilities
 
Payable for investments purchased
3,538,759

Payable for capital shares redeemed
2,192,814

Unrealized depreciation on forward foreign currency exchange contracts
12,522

Accrued management fees
2,265,666

Distribution and service fees payable
108,965

 
8,118,726

 
 
Net Assets
$
2,979,968,672

 
 
Net Assets Consist of:
 
Capital (par value and paid-in surplus)
$
2,501,855,717

Distributable earnings
478,112,955

 
$
2,979,968,672

 
Net Assets
Shares Outstanding
Net Asset Value
Per Share
Investor Class, $0.01 Par Value

$1,845,966,609

227,855,284

$8.10
I Class, $0.01 Par Value

$313,183,143

38,576,962

$8.12
Y Class, $0.01 Par Value

$307,791,739

37,907,177

$8.12
A Class, $0.01 Par Value

$80,120,124

9,897,729

$8.09*
C Class, $0.01 Par Value

$20,368,783

2,560,566

$7.95
R Class, $0.01 Par Value

$175,855,376

21,711,004

$8.10
R5 Class, $0.01 Par Value

$1,692,372

208,474

$8.12
R6 Class, $0.01 Par Value

$234,990,526

28,942,619

$8.12
*Maximum offering price $8.58 (net asset value divided by 0.9425).


See Notes to Financial Statements.


15

Statement of Operations
YEAR ENDED MARCH 31, 2019
Investment Income (Loss)
 
Income:
 
Dividends (net of foreign taxes withheld of $476,181)
$
82,398,897

Interest
1,444,202

 
83,843,099

 
 
Expenses:
 
Management fees
28,135,345

Distribution and service fees:
 
A Class
256,377

C Class
243,377

R Class
853,403

Directors' fees and expenses
86,766

Other expenses
10,947

 
29,586,215

 
 
Net investment income (loss)
54,256,884

 
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) on:
 
Investment transactions
141,148,971

Forward foreign currency exchange contract transactions
12,357,633

Foreign currency translation transactions
(47,352
)
 
153,459,252

 
 
Change in net unrealized appreciation (depreciation) on:
 
Investments
(82,989,216
)
Forward foreign currency exchange contracts
1,340,098

Translation of assets and liabilities in foreign currencies
(14,658
)
 
(81,663,776
)
 
 
Net realized and unrealized gain (loss)
71,795,476

 
 
Net Increase (Decrease) in Net Assets Resulting from Operations
$
126,052,360



See Notes to Financial Statements.


16

Statement of Changes in Net Assets
YEARS ENDED MARCH 31, 2019 AND MARCH 31, 2018
Increase (Decrease) in Net Assets
March 31, 2019
March 31, 2018
Operations
 
 
Net investment income (loss)
$
54,256,884

$
53,522,139

Net realized gain (loss)
153,459,252

195,236,802

Change in net unrealized appreciation (depreciation)
(81,663,776
)
(136,942,380
)
Net increase (decrease) in net assets resulting from operations
126,052,360

111,816,561

 
 
 
Distributions to Shareholders
 
 
From earnings:(1)
 
 
Investor Class
(184,255,327
)
(150,352,905
)
I Class
(34,298,731
)
(46,584,400
)
Y Class
(28,797,263
)
(2,837
)
A Class
(8,568,476
)
(8,342,338
)
C Class
(1,947,808
)
(1,919,923
)
R Class
(15,653,975
)
(9,787,008
)
R5 Class
(145,494
)
(372
)
R6 Class
(22,421,758
)
(13,685,630
)
Decrease in net assets from distributions
(296,088,832
)
(230,675,413
)
 
 
 
Capital Share Transactions
 
 
Net increase (decrease) in net assets from capital share transactions (Note 5)
(46,554,546
)
(70,448,871
)
 
 
 
Net increase (decrease) in net assets
(216,591,018
)
(189,307,723
)
 
 
 
Net Assets
 
 
Beginning of period
3,196,559,690

3,385,867,413

End of period
$
2,979,968,672

$
3,196,559,690


(1)
Prior period presentation has been updated to reflect the current period combination of distributions to shareholders from net investment income and net realized gains. Distributions from net investment income were $(31,929,403), $(10,054,845), $(2,549), $(1,515,298), $(148,441), $(1,371,454), $(84) and $(3,527,513) for Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class, respectively. Distributions from net realized gains were $(118,423,502), $(36,529,555), $(288), $(6,827,040), $(1,771,482), $(8,415,554), $(288) and $(10,158,117) for Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class, respectively.


See Notes to Financial Statements.


17

Notes to Financial Statements

MARCH 31, 2019

1. Organization

American Century Capital Portfolios, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. 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. Income is a secondary objective.

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. Sale of the Y Class and R5 Class commenced on April 10, 2017.

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 per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Directors has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
 
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the NYSE as provided by an independent pricing service.
 
Fixed income securities are valued at the evaluated mean as provided by independent pricing services or at the mean of the most recent bid and asked prices as provided by investment dealers. U.S. Treasury and Government Agency securities are valued using market models that consider trade data, quotations from dealers and active market makers, relevant yield curve and spread data, creditworthiness, trade data or market information on comparable securities, and other relevant security specific information.
 
Open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost, which approximates fair value. Forward foreign currency exchange contracts are valued at the mean of the appropriate forward exchange rate at the close of the NYSE as provided by an independent pricing service.
 
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Directors or its delegate, in accordance with policies and procedures adopted by the Board of Directors. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.

18

The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value 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. If significant fluctuations in foreign markets are identified, 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.
 

19

Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid quarterly. Distributions from net realized gains, if any, are generally declared and paid annually. 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 all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent directors (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. 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 March 31, 2019 are as follows:
 
Management Fee Schedule
 Range
Effective Annual
Management Fee
Investor Class
0.85% to 1.00%
0.98%
I Class
0.65% to 0.80%
0.78%
Y Class
0.50% to 0.65%
0.63%
A Class
0.85% to 1.00%
0.98%
C Class
0.85% to 1.00%
0.98%
R Class
0.85% to 1.00%
0.98%
R5 Class
0.65% to 0.80%
0.78%
R6 Class
0.50% to 0.65%
0.63%

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 March 31, 2019 are detailed in the Statement of Operations.


20

Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
 
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $18,738,440 and $20,587,986, respectively. The effect of interfund transactions on the Statement of Operations was $1,558,692 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 March 31, 2019 were $1,447,825,916 and $1,725,954,131, respectively.


21

5. Capital Share Transactions

Transactions in shares of the fund were as follows:
 
Year ended
March 31, 2019
Year ended
March 31, 2018(1)
 
Shares
Amount
Shares
Amount
Investor Class/Shares Authorized
1,600,000,000

 
1,520,000,000

 
Sold
17,347,531

$
148,195,629

38,239,252

$
341,794,990

Issued in reinvestment of distributions
23,280,122

180,871,590

16,645,732

147,677,850

Redeemed
(48,918,778
)
(421,662,491
)
(83,829,750
)
(752,701,212
)
 
(8,291,125
)
(92,595,272
)
(28,944,766
)
(263,228,372
)
I Class/Shares Authorized
380,000,000

 
500,000,000

 
Sold
11,616,653

101,550,349

28,587,515

257,956,737

Issued in reinvestment of distributions
4,252,832

33,312,977

5,152,094

45,809,199

Redeemed
(52,059,590
)
(468,061,238
)
(17,258,883
)
(154,296,019
)
 
(36,190,105
)
(333,197,912
)
16,480,726

149,469,917

Y Class/Shares Authorized
250,000,000

 
50,000,000

 
Sold
42,484,368

382,459,514

119,399

1,065,642

Issued in reinvestment of distributions
3,310,435

25,710,716

322

2,837

Redeemed
(8,007,332
)
(65,171,855
)
(15
)
(143
)
 
37,787,471

342,998,375

119,706

1,068,336

A Class/Shares Authorized
90,000,000

 
90,000,000

 
Sold
2,323,632

20,049,630

3,529,282

31,579,275

Issued in reinvestment of distributions
998,155

7,732,517

812,002

7,195,896

Redeemed
(6,884,467
)
(59,025,775
)
(8,506,421
)
(76,208,050
)
 
(3,562,680
)
(31,243,628
)
(4,165,137
)
(37,432,879
)
C Class/Shares Authorized
30,000,000

 
30,000,000

 
Sold
349,377

2,739,079

533,342

4,686,329

Issued in reinvestment of distributions
243,224

1,836,053

207,225

1,804,521

Redeemed
(1,433,100
)
(12,126,386
)
(1,310,789
)
(11,560,137
)
 
(840,499
)
(7,551,254
)
(570,222
)
(5,069,287
)
R Class/Shares Authorized
140,000,000

 
100,000,000

 
Sold
2,641,340

22,697,929

5,375,932

48,069,823

Issued in reinvestment of distributions
2,025,266

15,653,877

1,104,583

9,787,008

Redeemed
(1,243,782
)
(10,829,203
)
(1,211,218
)
(10,903,868
)
 
3,422,824

27,522,603

5,269,297

46,952,963

R5 Class/Shares Authorized
30,000,000

 
50,000,000

 
Sold
213,196

1,964,484

557

5,001

Issued in reinvestment of distributions
18,889

145,494

42

372

Redeemed
(24,210
)
(209,253
)
—

—

 
207,875

1,900,725

599

5,373

R6 Class/Shares Authorized
225,000,000

 
130,000,000

 
Sold
12,030,143

103,530,775

12,243,329

110,457,423

Issued in reinvestment of distributions
2,722,520

21,263,710

1,539,010

13,685,630

Redeemed
(8,941,778
)
(79,182,668
)
(9,594,882
)
(86,357,975
)
 
5,810,885

45,611,817

4,187,457

37,785,078

Net increase (decrease)
(1,655,354
)
$
(46,554,546
)
(7,622,340
)
$
(70,448,871
)

(1)
April 10, 2017 (commencement of sale) through March 31, 2018 for the Y Class and R5 Class.



22

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
 
 
 
Automobiles
$
20,862,035

$
15,100,659

—

Food Products
83,743,407

22,515,883

—

Health Care Equipment and Supplies
109,995,129

17,197,957

—

Hotels, Restaurants and Leisure
11,178,029

5,192,835

—

Industrial Conglomerates
71,142,726

26,611,376

—

Machinery
8,794,938

40,576,682

—

Metals and Mining
—

16,831,613

—

Oil, Gas and Consumable Fuels
255,692,679

54,261,891

—

Pharmaceuticals
265,192,402

5,890,638

—

Other Industries
1,871,176,032

—

—

Temporary Cash Investments
10,896

72,642,827

—

 
$
2,697,788,273

$
276,822,361

—

Other Financial Instruments
 
 
 
Forward Foreign Currency Exchange Contracts
—

$
1,458,103

—

      
 
 
 
Liabilities
 
 
 
Other Financial Instruments
 
 
 
Forward Foreign Currency Exchange Contracts
—

$
12,522

—


23

7. Derivative Instruments

Foreign Currency Risk — The fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The value of foreign investments held by a fund may be significantly affected by changes in foreign currency exchange rates. The dollar value of a foreign security generally decreases when the value of the dollar rises against the foreign currency in which the security is denominated and tends to increase when the value of the dollar declines against such foreign currency. A fund may enter into forward foreign currency exchange contracts to reduce a fund's exposure to foreign currency exchange rate fluctuations. The net U.S. dollar value of foreign currency underlying all contractual commitments held by a fund and the resulting unrealized appreciation or depreciation are determined daily. Realized gain or loss is recorded upon the termination of the contract. Net realized and unrealized gains or losses occurring during the holding period of forward foreign currency exchange contracts are a component of net realized gain (loss) on forward foreign currency exchange contract transactions and change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts, respectively. A fund bears the risk of an unfavorable change in the foreign currency exchange rate underlying the forward contract. Additionally, losses, up to the fair value, may arise if the counterparties do not perform under the contract terms. The fund's average U.S. dollar exposure to foreign currency risk derivative instruments held during the period was $162,662,875.
 
The value of foreign currency risk derivative instruments as of March 31, 2019, is disclosed on the Statement of Assets and Liabilities as an asset of $1,458,103 in unrealized appreciation on forward foreign currency exchange contracts and a liability of $12,522 in unrealized depreciation on forward foreign currency exchange contracts. For the year ended March 31, 2019, the effect of foreign currency risk derivative instruments on the Statement of Operations was $12,357,633 in net realized gain (loss) on forward foreign currency exchange contract transactions and $1,340,098 in change in net unrealized appreciation (depreciation) on forward foreign currency exchange contracts.
 
8. Risk Factors

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.

9. Federal Tax Information

The tax character of distributions paid during the years ended March 31, 2019 and March 31, 2018 were as follows:
 
2019
2018
Distributions Paid From
 
 
Ordinary income
$
75,346,441

$
69,911,340

Long-term capital gains
$
220,742,391

$
160,764,073


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.
 

24

As of period end, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments
$
2,506,256,347

Gross tax appreciation of investments
$
608,186,642

Gross tax depreciation of investments
(139,832,355
)
Net tax appreciation (depreciation) of investments
468,354,287

Net tax appreciation (depreciation) on derivatives and translation of assets and liabilities in foreign currencies
(14,970
)
Net tax appreciation (depreciation)
$
468,339,317

Undistributed ordinary income
—

Accumulated long-term gains
$
9,773,638


The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.

25

Financial Highlights
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
Per-Share Data
 
 
 
 
 
 
 
 
Ratios and Supplemental Data
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment
Income
(Loss)(1)
Net Realized and Unrealized
Gain (Loss)
Total From
Investment
Operations
Net
Investment
Income
Net
Realized
Gains
Total
Distributions
Net Asset
Value,
End
of Period
Total
Return(2)
Operating
Expenses
Net
Investment
Income
(Loss)
Portfolio
Turnover
Rate
Net Assets,
End of
Period
(in thousands)
Investor Class
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.65
0.15
0.15
0.30
(0.14)
(0.71)
(0.85)
$8.10
4.01%
0.98%
1.70%
48%

$1,845,967

2018
$8.98
0.14
0.17
0.31
(0.13)
(0.51)
(0.64)
$8.65
3.38%
0.98%
1.59%
35%

$2,043,212

2017
$7.73
0.13
1.39
1.52
(0.12)
(0.15)
(0.27)
$8.98
19.79%
0.98%
1.48%
46%

$2,380,747

2016
$8.55
0.13
(0.28)
(0.15)
(0.15)
(0.52)
(0.67)
$7.73
(1.53)%
0.98%
1.65%
48%

$2,009,044

2015
$8.46
0.13
0.62
0.75
(0.13)
(0.53)
(0.66)
$8.55
8.91%
0.97%
1.54%
45%

$2,003,967

I Class
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.67
0.16
0.15
0.31
(0.15)
(0.71)
(0.86)
$8.12
4.21%
0.78%
1.90%
48%

$313,183

2018
$9.00
0.16
0.17
0.33
(0.15)
(0.51)
(0.66)
$8.67
3.58%
0.78%
1.79%
35%

$648,241

2017
$7.75
0.14
1.40
1.54
(0.14)
(0.15)
(0.29)
$9.00
19.98%
0.78%
1.68%
46%

$524,448

2016
$8.56
0.15
(0.27)
(0.12)
(0.17)
(0.52)
(0.69)
$7.75
(1.21)%
0.78%
1.85%
48%

$546,782

2015
$8.47
0.15
0.62
0.77
(0.15)
(0.53)
(0.68)
$8.56
9.10%
0.77%
1.74%
45%

$1,215,076

Y Class
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.67
0.19
0.14
0.33
(0.17)
(0.71)
(0.88)
$8.12
4.36%
0.63%
2.05%
48%

$307,792

2018(3)
$8.98
0.19
0.17
0.36
(0.16)
(0.51)
(0.67)
$8.67
3.94%
0.63%(4)
2.15%(4)
35%(5)

$1,038



For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
Per-Share Data
 
 
 
 
 
 
 
 
Ratios and Supplemental Data
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment
Income
(Loss)(1)
Net Realized and Unrealized
Gain (Loss)
Total From
Investment
Operations
Net
Investment
Income
Net
Realized
Gains
Total
Distributions
Net Asset
Value,
End
of Period
Total
Return(2)
Operating
Expenses
Net
Investment
Income
(Loss)
Portfolio
Turnover
Rate
Net Assets,
End of
Period
(in thousands)
A Class
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.65
0.12
0.15
0.27
(0.12)
(0.71)
(0.83)
$8.09
3.63%
1.23%
1.45%
48%

$80,120

2018
$8.98
0.12
0.17
0.29
(0.11)
(0.51)
(0.62)
$8.65
3.13%
1.23%
1.34%
35%

$116,377

2017
$7.73
0.11
1.39
1.50
(0.10)
(0.15)
(0.25)
$8.98
19.49%
1.23%
1.23%
46%

$158,200

2016
$8.54
0.11
(0.27)
(0.16)
(0.13)
(0.52)
(0.65)
$7.73
(1.65)%
1.23%
1.40%
48%

$138,798

2015
$8.45
0.11
0.62
0.73
(0.11)
(0.53)
(0.64)
$8.54
8.64%
1.22%
1.29%
45%

$365,063

C Class
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.51
0.06
0.14
0.20
(0.05)
(0.71)
(0.76)
$7.95
2.92%
1.98%
0.70%
48%

$20,369

2018
$8.84
0.05
0.17
0.22
(0.04)
(0.51)
(0.55)
$8.51
2.40%
1.98%
0.59%
35%

$28,948

2017
$7.62
0.04
1.36
1.40
(0.03)
(0.15)
(0.18)
$8.84
18.45%
1.98%
0.48%
46%

$35,124

2016
$8.43
0.05
(0.27)
(0.22)
(0.07)
(0.52)
(0.59)
$7.62
(2.42)%
1.98%
0.65%
48%

$26,542

2015
$8.36
0.05
0.60
0.65
(0.05)
(0.53)
(0.58)
$8.43
7.77%
1.97%
0.54%
45%

$29,473

R Class
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.65
0.10
0.15
0.25
(0.09)
(0.71)
(0.80)
$8.10
3.50%
1.48%
1.20%
48%

$175,855

2018
$8.98
0.10
0.16
0.26
(0.08)
(0.51)
(0.59)
$8.65
2.87%
1.48%
1.09%
35%

$158,220

2017
$7.73
0.08
1.40
1.48
(0.08)
(0.15)
(0.23)
$8.98
19.18%
1.48%
0.98%
46%

$116,917

2016
$8.55
0.09
(0.28)
(0.19)
(0.11)
(0.52)
(0.63)
$7.73
(2.02)%
1.48%
1.15%
48%

$68,477

2015
$8.46
0.09
0.62
0.71
(0.09)
(0.53)
(0.62)
$8.55
8.37%
1.47%
1.04%
45%

$52,623

R5 Class
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.67
0.18
0.13
0.31
(0.15)
(0.71)
(0.86)
$8.12
4.21%
0.78%
1.90%
48%

$1,692

2018(3)
$8.98
0.16
0.19
0.35
(0.15)
(0.51)
(0.66)
$8.67
3.80%
0.78%(4)
1.78%(4)
35%(5)

$5



For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
Per-Share Data
 
 
 
 
 
 
 
 
Ratios and Supplemental Data
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment
Income
(Loss)(1)
Net Realized and Unrealized
Gain (Loss)
Total From
Investment
Operations
Net
Investment
Income
Net
Realized
Gains
Total
Distributions
Net Asset
Value,
End
of Period
Total
Return(2)
Operating
Expenses
Net
Investment
Income
(Loss)
Portfolio
Turnover
Rate
Net Assets,
End of
Period
(in thousands)
R6 Class
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
$8.67
0.18
0.15
0.33
(0.17)
(0.71)
(0.88)
$8.12
4.36%
0.63%
2.05%
48%

$234,991

2018
$9.00
0.17
0.17
0.34
(0.16)
(0.51)
(0.67)
$8.67
3.74%
0.63%
1.94%
35%

$200,518

2017
$7.75
0.16
1.39
1.55
(0.15)
(0.15)
(0.30)
$9.00
20.16%
0.63%
1.83%
46%

$170,432

2016
$8.56
0.16
(0.27)
(0.11)
(0.18)
(0.52)
(0.70)
$7.75
(1.06)%
0.63%
2.00%
48%

$45,959

2015
$8.47
0.17
0.61
0.78
(0.16)
(0.53)
(0.69)
$8.56
9.27%
0.62%
1.89%
45%

$34,116

Notes to Financial Highlights
(1)
Computed using average shares outstanding throughout the period.
(2)
Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)
April 10, 2017 (commencement of sale) through March 31, 2018.
(4)
Annualized.
(5)
Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2018.

See Notes to Financial Statements.


Report of Independent Registered Public Accounting Firm

To the shareholders and the Board of Directors of American Century Capital Portfolios, Inc.:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Value Fund, one of the portfolios constituting the American Century Capital Portfolios, Inc. (the “Fund”), as of March 31, 2019, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Value Fund of the American Century Capital Portfolios, Inc. as of March 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

Kansas City, Missouri
May 16, 2019

We have served as the auditor of one or more American Century investment companies since 1997.

29

Management

The Board of Directors

The individuals listed below serve as directors of the funds. Each director will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for directors who are not “interested persons,” as that term is defined in the Investment Company Act (independent directors). Independent directors shall retire by December 31 of the year in which they reach their 75th birthday.
Mr. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other directors (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The directors serve in this capacity for seven (in the case of Jonathan S. Thomas, 16; and Stephen E. Yates, 8) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the directors. The mailing address for each director is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Director
Other Directorships Held During Past 5 Years
Independent Directors


Thomas W. Bunn (1953)
Director
Since 2017
Retired
67
SquareTwo Financial; Barings (formerly Babson Capital Funds Trust) (2013 to 2016)
Chris H. Cheesman
(1962)
Director
Since 2019
Retired. Senior Vice President & Chief Audit Executive, AllianceBernstein (1999 to 2018)
67
None
Barry Fink
(1955)
Director
Since 2012 (independent since 2016)
Retired
67
None
Rajesh K. Gupta
(1960)
Director
Since 2019
Partner Emeritus, SeaCrest Investment Management and SeaCrest Wealth Management (2019 to Present); Chief Executive Officer and Chief Investment Officer, SeaCrest Investment Management (2006 to 2019); Chief Executive Officer and Chief Investment Officer, SeaCrest Wealth Management (2008 to 2019)
67
None


30

Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Director
Other Directorships Held During Past 5 Years
Independent Directors


Lynn Jenkins
(1963)
Director
Since 2019
United States Representative, U.S. House of Representatives (2009 to 2018)
67
MGP Ingredients, Inc.
Jan M. Lewis
(1957)
Director
Since 2011
Retired
67
None
John R. Whitten
(1946)
Director
Since 2008
Retired
67
Rudolph Technologies, Inc.
Stephen E. Yates
(1948)
Director and Chairman of the Board
Since 2012 (Chairman since 2018)
Retired
72
None
Interested Director


Jonathan S. Thomas
(1963)
Director and President
Since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
117
BioMed Valley Discoveries, Inc.
The Statement of Additional Information has additional information about the fund's directors and is available without charge, upon request, by calling 1-800-345-2021.

31

Officers

The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for 16 (in the case of Robert J. Leach, 15) investment companies in the American Century family of funds, unless otherwise noted. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each officer listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Offices with the Funds
Principal Occupation(s) During the Past Five Years
Jonathan S. Thomas
(1963)
Director and President since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
R. Wes Campbell
(1974)
Chief Financial Officer and Treasurer since 2018
Investment Operations and Investment Accounting, ACS (2000 to present)
Amy D. Shelton
(1964)
Chief Compliance Officer and Vice President since 2014
Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present); Vice President, Client Interactions and Marketing, ACIS (2013 to 2014). Also serves as Vice President, ACIS
Charles A. Etherington
(1957)
General Counsel since 2007 and Senior Vice President since 2006
Attorney, ACC (1994 to present); Vice President, ACC (2005 to present); General Counsel, ACC (2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS
C. Jean Wade
(1964)
Vice President since 2012
Senior Vice President, ACS (2017 to present); Vice President, ACS (2000 to 2017)
Robert J. Leach
(1966)
Vice President since 2006
Vice President, ACS (2000 to present)
David H. Reinmiller
(1963)
Vice President since 2000
Attorney, ACC (1994 to present). Also serves as Vice President, ACIM and ACS
Ward D. Stauffer
(1960)
Secretary since 2005
Attorney, ACC (2003 to present)



32

Additional Information

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 the "About Us" page of American Century Investments’ website at americancentury.com and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.


Quarterly Portfolio Disclosure

The 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 on Form N-Q or as an exhibit to its reports on Form N-PORT. The fund’s Forms N-Q and Form N-PORT reports are available on the SEC’s website at sec.gov. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.

33

Other Tax Information

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund hereby designates up to the maximum amount allowable as qualified dividend income for
the fiscal year ended March 31, 2019.

For corporate taxpayers, the fund hereby designates $66,472,238, or up to the maximum amount
allowable, of ordinary income distributions paid during the fiscal year ended March 31, 2019 as
qualified for the corporate dividends received deduction.

The fund hereby designates $26,408,847 as qualified short-term capital gain distributions for
purposes of Internal Revenue Code Section 871 for the fiscal year ended March 31, 2019.

The fund hereby designates $230,150,951, or up to the maximum amount allowable, as long-term
capital gain distributions (20% rate gain distributions) for the fiscal year ended March 31, 2019.

The fund utilized earnings and profits of $13,993,328 distributed to shareholders on redemption of
shares as part of the dividends paid deduction (tax equalization).


34

Notes

35

Notes

36

Notes

37

Notes

38

Notes

39

Notes


40




acihorizblkd42.jpg
 
 
 
 
Contact Us
americancentury.com
 
Automated Information Line
1-800-345-8765
 
Investor Services Representative
1-800-345-2021
or 816-531-5575
 
Investors Using Advisors
1-800-378-9878
 
Business, Not-For-Profit, Employer-Sponsored Retirement Plans
1-800-345-3533
 
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies
1-800-345-6488
 
Telecommunications Relay Service for the Deaf
711
 
 
 
 
American Century Capital Portfolios, Inc.
 
 
 
 
Investment Advisor:
American Century Investment Management, Inc.
Kansas City, Missouri
 
 
 
 
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
 
 
 
 
©2019 American Century Proprietary Holdings, Inc. All rights reserved.
CL-ANN-92273 1905
 


ITEM 2. CODE OF ETHICS.

(a)
The registrant has adopted a Code of Ethics for Senior Financial Officers that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, and persons performing similar functions.

(b)
No response required.

(c)
None.

(d)
None.

(e)
Not applicable.

(f)
The registrant’s Code of Ethics for Senior Financial Officers was filed as Exhibit 12 (a)(1) to American Century Asset Allocation Portfolios, Inc.’s Annual Certified Shareholder Report on Form N-CSR, File No. 811-21591, on September 29, 2005, and is incorporated herein by reference.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

(a)(1)
The registrant’s board has determined that the registrant has at least one audit committee financial expert serving on its audit committee.

(a)(2)
John R. Whitten and Jan M. Lewis are the registrant’s designated audit committee financial experts. They are “independent” as defined in Item 3 of Form N-CSR.
    
(a)(3)
Not applicable.

(b)
No response required.

(c)
No response required.

(d)
No response required.


ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a)
Audit Fees.

The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were as follows:

FY 2018:    $180,600
FY 2019:    $188,500

(b)
Audit-Related Fees.

The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were as follows:

For services rendered to the registrant:

FY 2018:$0
FY 2019:$0



Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X (relating to certain engagements for non-audit services with the registrant’s investment adviser and its affiliates):

FY 2018:$0
FY 2019:$0

(c)
Tax Fees.

The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were as follows:

For services rendered to the registrant:

FY 2018:    $0
FY 2019:    $0

Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X (relating to certain engagements for non-audit services with the registrant’s investment adviser and its affiliates):

FY 2018:    $0
FY 2019:    $0

(d)
All Other Fees.

The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item were as follows:

For services rendered to the registrant:

FY 2018:$0
FY 2019:$0

Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X (relating to certain engagements for non-audit services with the registrant’s investment adviser and its affiliates):

FY 2018:$0
FY 2019:$0

(e)(1)
In accordance with paragraph (c)(7)(i)(A) of Rule 2-01 of Regulation S-X, before the accountant is engaged by the registrant to render audit or non-audit services, the engagement is approved by the registrant’s audit committee. Pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, the registrant’s audit committee also pre-approves its accountant’s engagements for non-audit services with the registrant’s investment adviser, its parent company, and any entity controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, if the engagement relates directly to the operations and financial reporting of the registrant.

(e)(2)
All services described in each of paragraphs (b) through (d) of this Item were pre-approved before the engagement by the registrant’s audit committee pursuant to paragraph (c)(7)(i)(A) of Rule 2-01 of Regulation S-X. Consequently, none of such services were required to be approved by the audit committee pursuant to paragraph (c)(7)(i)(C).

(f)
The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was less than 50%.



(g)
The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant were as follows:

FY 2018:    $104,750
FY 2019:    $175,750

(h)
The registrant’s investment adviser and accountant have notified the registrant’s audit committee of all non-audit services that were rendered by the registrant’s accountant to the registrant’s investment adviser, its parent company, and any entity controlled by, or under common control with the investment adviser that provides services to the registrant, which services were not required to be pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X. The notification provided to the registrant’s audit committee included sufficient details regarding such services to allow the registrant’s audit committee to consider the continuing independence of its principal accountant.


ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.


ITEM 6. INVESTMENTS.

(a)
The schedule of investments is included as part of the report to stockholders filed under Item 1 of this Form.

(b)
Not applicable.


ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.


ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.


ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.


ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

During the reporting period, there were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board.




ITEM 11. CONTROLS AND PROCEDURES.

(a)
The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(b)
There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.


ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.


ITEM 13. EXHIBITS.

(a)(1)
Registrant’s Code of Ethics for Senior Financial Officers, which is the subject of the disclosure required by Item 2 of Form N-CSR, was filed as Exhibit 12(a)(1) to American Century Asset Allocation Portfolios, Inc.’s Certified Shareholder Report on Form N-CSR, File No. 811-21591, on September 29, 2005.

(a)(2)
Separate certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are filed and attached hereto as EX-99.CERT.

(a)(3)
Not applicable.

(a)(4)
Not applicable.

(b)
A certification by the registrant’s chief executive officer and chief financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, is furnished and attached hereto as EX-99.906CERT.




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant:
American Century Capital Portfolios, Inc.
 
 
 
By:
/s/ Jonathan S. Thomas
 
Name:
Jonathan S. Thomas
 
Title:
President
 
 
 
Date:
May 24, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:
/s/ Jonathan S. Thomas
 
Name:
Jonathan S. Thomas
 
Title:
President
 
 
(principal executive officer)
 
 
 
Date:
May 24, 2019

By:
/s/ R. Wes Campbell
 
Name:
R. Wes Campbell
 
Title:
Treasurer and
 
 
Chief Financial Officer
 
 
(principal financial officer)
 
 
 
Date:
May 24, 2019