UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-06247 | |||||
AMERICAN CENTURY WORLD MUTUAL FUNDS, INC. | ||||||
(Exact name of registrant as specified in charter) | ||||||
4500 MAIN STREET, KANSAS CITY, MISSOURI | 64111 | |||||
(Address of principal executive offices) | (Zip Code) | |||||
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: | 11-30 | |||||
Date of reporting period: | 05-31-2019 | |||||
ITEM 1. REPORTS TO STOCKHOLDERS.
Semiannual Report | |
May 31, 2019 | |
Emerging Markets Fund | |
Investor Class (TWMIX) | |
I Class (AMKIX) | |
Y Class (AEYMX) | |
A Class (AEMMX) | |
C Class (ACECX) | |
R Class (AEMRX) | |
R5 Class (AEGMX) | |
R6 Class (AEDMX) | |
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 |
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 |
Jonathan ThomasDear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2019. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, please visit our website, americancentury.com.
Trade Tensions Tempered Stock Gains
Sharp sell-offs opened and closed the six-month reporting period, with a rally in the middle. Mounting investors’ concerns about slowing global economic and earnings growth, U.S.-China trade tensions, falling oil prices and rising U.S. interest rates triggered the December 2018 sell-off. Despite signs that global growth was slowing, the Federal Reserve (Fed) raised interest rates in December, its fourth rate hike of the year. Investors feared this rate increase combined with the Fed’s bullish 2019 rate-hike outlook were too aggressive, further fueling the sell-off.
The new year brought a renewed sense of stability to the global financial markets and a new round of risk-on investing. Investors’ worst-case fears about growth and trade eased, and corporate earnings results were generally better than expected. Central banks in Europe and Japan continued to pursue dovish policies, and the Fed ended its rate-hike strategy amid moderating global growth and inflation. Additionally, equity valuations appeared attractive following the late-2018 stock market sell-off.
Investor sentiment took another U-turn in May. Heightened U.S.-China trade tensions and a new round of tariffs threatened global growth. Global oil prices plunged, contributing to the unrest. Then, late in the month, U.K. Prime Minister Theresa May’s resignation reignited fears of a no-deal Brexit. Against this backdrop, investors fled global stocks in favor of perceived safe-haven assets.
Despite the steep sell-offs in December and May, global stocks held onto modest gains for the entire six-month period. Non-U.S. stocks generally outperformed U.S. stocks. Among non-U.S. stocks, developed markets broadly outperformed emerging markets.
Looking ahead, we expect volatility to remain a formidable factor as investors react to global growth data, trade conflicts, 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,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2019 | |
Top Ten Holdings | % of net assets |
Tencent Holdings Ltd. | 5.6% |
Taiwan Semiconductor Manufacturing Co. Ltd. | 4.8% |
Alibaba Group Holding Ltd. ADR | 4.5% |
Samsung Electronics Co. Ltd. | 3.4% |
Naspers Ltd., N Shares | 2.7% |
HDFC Bank Ltd. | 2.7% |
Novatek PJSC GDR | 2.5% |
Fila Korea Ltd. | 2.4% |
Banco Bradesco SA ADR | 1.9% |
CNOOC Ltd. | 1.9% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 98.4% |
Warrants | —* |
Total Equity Exposure | 98.4% |
Temporary Cash Investments | 1.6% |
Temporary Cash Investments - Securities Lending Collateral | 1.3% |
Other Assets and Liabilities | (1.3)% |
*Category is less than 0.05% of total net assets. | |
Investments by Country | % of net assets |
China | 31.6% |
South Korea | 11.3% |
India | 9.6% |
Taiwan | 9.0% |
Brazil | 8.2% |
South Africa | 6.1% |
Russia | 4.9% |
Indonesia | 3.7% |
Thailand | 3.6% |
Mexico | 3.4% |
Other Countries | 7.0% |
Cash and Equivalents* | 1.6% |
*Includes temporary cash investments, temporary cash investments - securities lending collateral and other assets and liabilities. | |
3
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 December 1, 2018 to May 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.
4
Beginning Account Value 12/1/18 | Ending Account Value 5/31/19 | Expenses Paid During Period(1) 12/1/18 - 5/31/19 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,024.10 | $6.31 | 1.25% |
I Class | $1,000 | $1,024.50 | $5.30 | 1.05% |
Y Class | $1,000 | $1,025.90 | $4.55 | 0.90% |
A Class | $1,000 | $1,023.30 | $7.57 | 1.50% |
C Class | $1,000 | $1,019.00 | $11.33 | 2.25% |
R Class | $1,000 | $1,021.30 | $8.82 | 1.75% |
R5 Class | $1,000 | $1,024.40 | $5.30 | 1.05% |
R6 Class | $1,000 | $1,025.90 | $4.55 | 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. |
5
Schedule of Investments |
MAY 31, 2019 (UNAUDITED)
Shares | Value | |||
COMMON STOCKS — 98.4% | ||||
Brazil — 8.2% | ||||
B3 SA - Brasil Bolsa Balcao | 4,056,200 | $ | 37,761,181 | |
Banco Bradesco SA ADR | 4,864,636 | 45,532,993 | ||
Localiza Rent a Car SA | 2,904,632 | 28,202,826 | ||
Lojas Renner SA | 2,599,960 | 29,153,848 | ||
Magazine Luiza SA | 576,000 | 28,655,044 | ||
Pagseguro Digital Ltd., Class A(1)(2) | 680,323 | 21,783,942 | ||
191,089,834 | ||||
China — 31.6% | ||||
Alibaba Group Holding Ltd. ADR(1) | 704,565 | 105,163,372 | ||
Anhui Conch Cement Co. Ltd., H Shares | 4,925,500 | 28,678,357 | ||
Baozun, Inc. ADR(1) | 649,759 | 25,490,046 | ||
Brilliance China Automotive Holdings Ltd. | 26,040,000 | 26,415,124 | ||
China Construction Bank Corp., H Shares | 54,801,000 | 43,241,198 | ||
China Education Group Holdings Ltd.(2) | 11,278,000 | 17,340,699 | ||
China Gas Holdings Ltd. | 5,828,400 | 18,705,316 | ||
China Overseas Land & Investment Ltd. | 3,232,000 | 11,190,515 | ||
CIFI Holdings Group Co. Ltd. | 33,534,000 | 19,983,809 | ||
CNOOC Ltd. | 27,739,000 | 45,096,182 | ||
CRRC Corp. Ltd., H Shares | 17,941,000 | 15,368,131 | ||
GDS Holdings Ltd. ADR(1) | 921,030 | 29,924,265 | ||
Geely Automobile Holdings Ltd. | 4,347,000 | 7,102,004 | ||
Haier Electronics Group Co. Ltd. | 5,336,000 | 13,546,878 | ||
Industrial & Commercial Bank of China Ltd., H Shares | 61,285,645 | 43,680,255 | ||
Kweichow Moutai Co. Ltd., A Shares | 90,925 | 11,650,533 | ||
KWG Group Holdings Ltd. | 6,333,000 | 6,335,868 | ||
Li Ning Co. Ltd.(1) | 11,045,500 | 18,234,237 | ||
New Oriental Education & Technology Group, Inc. ADR(1) | 354,815 | 30,389,905 | ||
Ping An Insurance Group Co. of China Ltd., H Shares | 3,685,000 | 40,568,102 | ||
Shenzhou International Group Holdings Ltd. | 1,709,800 | 20,102,060 | ||
TAL Education Group ADR(1) | 840,131 | 28,908,908 | ||
Tencent Holdings Ltd. | 3,187,000 | 132,168,058 | ||
739,283,822 | ||||
Colombia — 0.4% | ||||
Bancolombia SA ADR | 229,484 | 10,778,864 | ||
Czech Republic — 0.5% | ||||
Moneta Money Bank AS | 3,353,275 | 10,946,432 | ||
Egypt — 0.7% | ||||
Commercial International Bank Egypt S.A.E. | 2,215,207 | 9,486,152 | ||
Commercial International Bank Egypt S.A.E. GDR | 1,681,101 | 6,791,389 | ||
16,277,541 | ||||
Hungary — 0.8% | ||||
OTP Bank Nyrt | 454,221 | 18,952,163 | ||
6
Shares | Value | |||
India — 9.6% | ||||
Bajaj Finance Ltd. | 268,158 | $ | 13,336,972 | |
Bata India Ltd. | 1,323,869 | 25,160,869 | ||
Bharat Financial Inclusion Ltd.(1) | 2,139,218 | 30,713,168 | ||
Godrej Consumer Products Ltd. | 524,290 | 5,174,938 | ||
HDFC Bank Ltd. | 1,788,331 | 62,299,016 | ||
Indraprastha Gas Ltd. | 2,776,368 | 13,420,127 | ||
Jubilant Foodworks Ltd. | 1,171,223 | 22,043,093 | ||
Larsen & Toubro Ltd. | 632,391 | 14,213,585 | ||
Nestle India Ltd. | 94,618 | 15,588,223 | ||
Tata Consultancy Services Ltd. | 731,236 | 23,043,032 | ||
224,993,023 | ||||
Indonesia — 3.7% | ||||
Astra International Tbk PT | 27,150,400 | 14,153,492 | ||
Bank Rakyat Indonesia Persero Tbk PT | 137,715,600 | 39,511,915 | ||
Telekomunikasi Indonesia Persero Tbk PT | 118,627,500 | 32,384,497 | ||
86,049,904 | ||||
Mexico — 3.4% | ||||
America Movil SAB de CV, Class L ADR | 1,823,765 | 25,587,423 | ||
Grupo Aeroportuario del Centro Norte SAB de CV | 3,947,824 | 23,869,744 | ||
Wal-Mart de Mexico SAB de CV | 10,651,408 | 29,972,582 | ||
79,429,749 | ||||
Peru — 1.3% | ||||
Credicorp Ltd. | 135,443 | 30,312,143 | ||
Philippines — 1.4% | ||||
Ayala Land, Inc. | 33,873,700 | 32,144,150 | ||
Russia — 4.9% | ||||
Novatek PJSC GDR | 289,907 | 59,192,558 | ||
Sberbank of Russia PJSC ADR (London) | 1,761,672 | 25,259,588 | ||
Yandex NV, A Shares(1) | 849,422 | 30,511,238 | ||
114,963,384 | ||||
South Africa — 6.1% | ||||
Capitec Bank Holdings Ltd. | 367,044 | 33,231,046 | ||
Discovery Ltd. | 1,386,093 | 13,186,120 | ||
Foschini Group Ltd. (The) | 1,172,446 | 14,236,207 | ||
Kumba Iron Ore Ltd. | 660,191 | 20,006,056 | ||
Naspers Ltd., N Shares | 278,672 | 62,466,489 | ||
143,125,918 | ||||
South Korea — 11.3% | ||||
CJ Logistics Corp.(1)(2) | 225,793 | 30,200,306 | ||
Cosmax, Inc. | 241,492 | 22,628,517 | ||
Doosan Infracore Co. Ltd.(1)(2) | 1,504,787 | 8,255,229 | ||
Fila Korea Ltd. | 853,853 | 55,639,660 | ||
Hotel Shilla Co. Ltd. | 175,518 | 13,866,538 | ||
Hyundai Heavy Industries Co. Ltd.(1) | 201,617 | 19,806,919 | ||
Orion Corp/Republic of Korea | 169,558 | 12,221,565 | ||
POSCO Chemical Co. Ltd.(2) | 262,120 | 11,936,611 | ||
7
Shares | Value | |||
Samsung Electro-Mechanics Co. Ltd.(2) | 134,114 | $ | 10,627,599 | |
Samsung Electronics Co. Ltd. | 2,221,029 | 78,840,841 | ||
264,023,785 | ||||
Taiwan — 9.0% | ||||
Chailease Holding Co. Ltd. | 10,455,880 | 38,330,016 | ||
Chroma ATE, Inc. | 4,643,000 | 19,009,156 | ||
Globalwafers Co. Ltd. | 642,000 | 6,154,774 | ||
President Chain Store Corp. | 1,338,000 | 12,726,317 | ||
Taiwan Cement Corp. | 14,824,300 | 20,100,015 | ||
Taiwan Cement Corp. Preference Shares(1) | 819,838 | 1,348,276 | ||
Taiwan Semiconductor Manufacturing Co. Ltd. | 15,205,939 | 112,628,850 | ||
210,297,404 | ||||
Thailand — 3.6% | ||||
Airports of Thailand PCL | 5,909,300 | 11,716,836 | ||
CP ALL PCL | 9,754,500 | 24,571,254 | ||
Kasikornbank PCL NVDR | 2,520,300 | 14,856,641 | ||
Minor International PCL | 10,865,400 | 13,323,428 | ||
Muangthai Capital PCL | 11,634,500 | 19,743,256 | ||
84,211,415 | ||||
Turkey — 0.5% | ||||
BIM Birlesik Magazalar AS | 805,865 | 11,024,849 | ||
United Arab Emirates — 0.8% | ||||
First Abu Dhabi Bank PJSC | 4,955,930 | 19,975,712 | ||
United Kingdom — 0.6% | ||||
NMC Health plc(2) | 537,814 | 15,358,555 | ||
TOTAL COMMON STOCKS (Cost $2,179,727,031) | 2,303,238,647 | |||
WARRANTS† | ||||
Thailand† | ||||
Minor International PCL(1) (Cost $—) | 543,270 | 17 | ||
TEMPORARY CASH INVESTMENTS — 1.6% | ||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.00%, 4/30/20 - 2/15/48, valued at $35,260,719), in a joint trading account at 2.30%, dated 5/31/19, due 6/3/19 (Delivery value $34,576,792) | 34,570,166 | |||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.25%, 11/15/27, valued at $3,735,258), at 1.25%, dated 5/31/19, due 6/3/19 (Delivery value $3,659,381) | 3,659,000 | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 56,421 | 56,421 | ||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $38,285,587) | 38,285,587 | |||
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 1.3% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $29,179,999) | 29,179,999 | 29,179,999 | ||
TOTAL INVESTMENT SECURITIES — 101.3% (Cost $2,247,192,617) | 2,370,704,250 | |||
OTHER ASSETS AND LIABILITIES — (1.3)% | (30,571,569 | ) | ||
TOTAL NET ASSETS — 100.0% | $ | 2,340,132,681 | ||
8
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Financials | 25.8 | % |
Consumer Discretionary | 24.5 | % |
Information Technology | 13.0 | % |
Communication Services | 9.4 | % |
Industrials | 6.4 | % |
Consumer Staples | 6.3 | % |
Energy | 4.4 | % |
Materials | 3.5 | % |
Real Estate | 3.1 | % |
Utilities | 1.4 | % |
Health Care | 0.6 | % |
Cash and Equivalents* | 1.6 | % |
*Includes temporary cash investments, temporary cash investments - securities lending and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
GDR | - | Global Depositary Receipt |
NVDR | - | Non-Voting Depositary Receipt |
† | Category is less than 0.05% of total net assets. |
(1) | Non-income producing. |
(2) | Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $43,969,260. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers. |
(3) | Investment of cash collateral from securities on loan. At the period end, the aggregate market value of the collateral held by the fund was $46,450,445, which includes securities collateral of $17,270,446. |
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2019 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $2,218,012,618) | $ | 2,341,524,251 | |
Investment made with cash collateral received for securities on loan, at value (cost of $29,179,999) | 29,179,999 | ||
Total investment securities, at value (cost of $2,247,192,617) | 2,370,704,250 | ||
Foreign currency holdings, at value (cost of $406,227) | 406,614 | ||
Receivable for capital shares sold | 4,355,850 | ||
Dividends and interest receivable | 4,755,596 | ||
Securities lending receivable | 69,356 | ||
Other assets | 29,409 | ||
2,380,321,075 | |||
Liabilities | |||
Payable for collateral received for securities on loan | 29,179,999 | ||
Payable for investments purchased | 1,656,115 | ||
Payable for capital shares redeemed | 7,088,600 | ||
Accrued management fees | 2,217,094 | ||
Distribution and service fees payable | 46,586 | ||
40,188,394 | |||
Net Assets | $ | 2,340,132,681 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 2,459,935,566 | |
Distributable earnings | (119,802,885 | ) | |
$ | 2,340,132,681 | ||
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $629,223,595 | 60,601,376 | $10.38 | |||
I Class, $0.01 Par Value | $1,248,219,309 | 117,174,355 | $10.65 | |||
Y Class, $0.01 Par Value | $9,008,596 | 843,488 | $10.68 | |||
A Class, $0.01 Par Value | $75,117,833 | 7,498,688 | $10.02* | |||
C Class, $0.01 Par Value | $31,562,098 | 3,467,548 | $9.10 | |||
R Class, $0.01 Par Value | $6,322,259 | 628,288 | $10.06 | |||
R5 Class, $0.01 Par Value | $2,966,517 | 278,220 | $10.66 | |||
R6 Class, $0.01 Par Value | $337,712,474 | 31,673,951 | $10.66 | |||
*Maximum offering price $10.63 (net asset value divided by 0.9425).
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $1,542,572) | $ | 15,185,509 | |
Interest | 357,033 | ||
Securities lending, net | 162,918 | ||
15,705,460 | |||
Expenses: | |||
Management fees | 13,019,430 | ||
Distribution and service fees: | |||
A Class | 94,450 | ||
C Class | 160,680 | ||
R Class | 15,282 | ||
Directors' fees and expenses | 32,119 | ||
Other expenses | 23,070 | ||
13,345,031 | |||
Net investment income (loss) | 2,360,429 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | (99,026,538 | ) | |
Foreign currency translation transactions | (681,201 | ) | |
(99,707,739 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | 149,667,996 | ||
Translation of assets and liabilities in foreign currencies | 22,334 | ||
149,690,330 | |||
Net realized and unrealized gain (loss) | 49,982,591 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 52,343,020 | |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2018 | ||||||
Increase (Decrease) in Net Assets | May 31, 2019 | November 30, 2018 | ||||
Operations | ||||||
Net investment income (loss) | $ | 2,360,429 | $ | 18,203,387 | ||
Net realized gain (loss) | (99,707,739 | ) | (145,900,157 | ) | ||
Change in net unrealized appreciation (depreciation) | 149,690,330 | (316,445,822 | ) | |||
Net increase (decrease) in net assets resulting from operations | 52,343,020 | (444,142,592 | ) | |||
Distributions to Shareholders | ||||||
From earnings: | ||||||
Investor Class | (4,369,482 | ) | (8,646,208 | ) | ||
I Class | (6,026,364 | ) | (7,994,063 | ) | ||
Y Class | (55,971 | ) | (1,759 | ) | ||
A Class | (149,480 | ) | (390,371 | ) | ||
C Class | — | (207,089 | ) | |||
R Class | — | (30,409 | ) | |||
R5 Class | (18,644 | ) | (41,149 | ) | ||
R6 Class | (2,430,490 | ) | (1,815,971 | ) | ||
Decrease in net assets from distributions | (13,050,431 | ) | (19,127,019 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 64,055,314 | 1,127,728,674 | ||||
Net increase (decrease) in net assets | 103,347,903 | 664,459,063 | ||||
Net Assets | ||||||
Beginning of period | 2,236,784,778 | 1,572,325,715 | ||||
End of period | $ | 2,340,132,681 | $ | 2,236,784,778 | ||
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2019 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Emerging Markets Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital growth.
The fund offers the Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value 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.
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
13
fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
14
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 31, 2019.
Remaining Contractual Maturity of Agreements | ||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | ||||||||
Securities Lending Transactions(1) | ||||||||||||
Common Stocks | $ | 29,179,999 | — | — | — | $ | 29,179,999 | |||||
Gross amount of recognized liabilities for securities lending transactions | $ | 29,179,999 | ||||||||||
(1) | Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand. |
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 6% of the shares of the fund.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that 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 annual management fee for each class is as follows:
Investor Class | I Class | Y Class | A Class | C Class | R Class | R5 Class | R6 Class |
1.25% | 1.05% | 0.90% | 1.25% | 1.25% | 1.25% | 1.05% | 0.90% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2019 are detailed in the Statement of Operations.
15
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases were $651,054 and there were no interfund sales.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2019 were $623,988,311 and $596,760,384, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2019 | Year ended November 30, 2018 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 1,100,000,000 | 1,150,000,000 | ||||||||
Sold | 17,473,051 | $ | 181,146,876 | 64,760,949 | $ | 771,018,077 | ||||
Issued in reinvestment of distributions | 388,374 | 4,217,739 | 651,370 | 8,389,638 | ||||||
Redeemed | (53,549,222 | ) | (580,862,726 | ) | (42,737,959 | ) | (476,726,066 | ) | ||
(35,687,797 | ) | (395,498,111 | ) | 22,674,360 | 302,681,649 | |||||
I Class/Shares Authorized | 900,000,000 | 1,100,000,000 | ||||||||
Sold | 60,410,590 | 668,494,595 | 84,346,072 | 1,028,660,971 | ||||||
Issued in reinvestment of distributions | 474,557 | 5,281,820 | 520,633 | 6,877,558 | ||||||
Redeemed | (29,520,668 | ) | (312,660,503 | ) | (40,057,350 | ) | (447,621,773 | ) | ||
31,364,479 | 361,115,912 | 44,809,355 | 587,916,756 | |||||||
Y Class/Shares Authorized | 30,000,000 | 25,000,000 | ||||||||
Sold | 427,428 | 4,655,661 | 484,086 | 5,451,640 | ||||||
Issued in reinvestment of distributions | 4,968 | 55,447 | 133 | 1,759 | ||||||
Redeemed | (39,150 | ) | (417,587 | ) | (34,488 | ) | (368,913 | ) | ||
393,246 | 4,293,521 | 449,731 | 5,084,486 | |||||||
A Class/Shares Authorized | 80,000,000 | 80,000,000 | ||||||||
Sold | 1,815,007 | 18,265,845 | 5,501,637 | 61,911,723 | ||||||
Issued in reinvestment of distributions | 10,533 | 110,381 | 27,068 | 336,722 | ||||||
Redeemed | (1,735,249 | ) | (17,429,676 | ) | (3,444,674 | ) | (38,074,936 | ) | ||
90,291 | 946,550 | 2,084,031 | 24,173,509 | |||||||
C Class/Shares Authorized | 40,000,000 | 45,000,000 | ||||||||
Sold | 522,255 | 4,757,687 | 2,206,474 | 23,600,751 | ||||||
Issued in reinvestment of distributions | – | – | 15,833 | 180,175 | ||||||
Redeemed | (621,981 | ) | (5,628,297 | ) | (1,007,861 | ) | (9,742,868 | ) | ||
(99,726 | ) | (870,610 | ) | 1,214,446 | 14,038,058 | |||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 109,330 | 1,106,645 | 492,151 | 5,468,250 | ||||||
Issued in reinvestment of distributions | – | – | 2,430 | 30,398 | ||||||
Redeemed | (72,292 | ) | (730,273 | ) | (316,573 | ) | (3,426,412 | ) | ||
37,038 | 376,372 | 178,008 | 2,072,236 | |||||||
R5 Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 40,859 | 437,571 | 590,313 | 7,280,374 | ||||||
Issued in reinvestment of distributions | 1,674 | 18,644 | 3,113 | 41,149 | ||||||
Redeemed | (196,236 | ) | (2,165,759 | ) | (165,206 | ) | (1,808,015 | ) | ||
(153,703 | ) | (1,709,544 | ) | 428,220 | 5,513,508 | |||||
R6 Class/Shares Authorized | 280,000,000 | 190,000,000 | ||||||||
Sold | 12,049,833 | 129,985,596 | 19,923,599 | 239,430,383 | ||||||
Issued in reinvestment of distributions | 212,269 | 2,364,675 | 136,929 | 1,810,200 | ||||||
Redeemed | (3,406,824 | ) | (36,949,047 | ) | (4,736,641 | ) | (54,992,111 | ) | ||
8,855,278 | 95,401,224 | 15,323,887 | 186,248,472 | |||||||
Net increase (decrease) | 4,799,106 | $ | 64,055,314 | 87,162,038 | $ | 1,127,728,674 | ||||
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6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | ||||||||
Brazil | $ | 67,316,935 | $ | 123,772,899 | — | |||
China | 219,876,496 | 519,407,326 | — | |||||
Colombia | 10,778,864 | — | ||||||
Mexico | 25,587,423 | 53,842,326 | — | |||||
Peru | 30,312,143 | — | — | |||||
Russia | 30,511,238 | 84,452,146 | — | |||||
Other Countries | — | 1,137,380,851 | — | |||||
Warrants | — | 17 | — | |||||
Temporary Cash Investments | 56,421 | 38,229,166 | — | |||||
Temporary Cash Investments - Securities Lending Collateral | 29,179,999 | — | — | |||||
$ | 413,619,519 | $ | 1,957,084,731 | — | ||||
7. 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 in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
18
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 2,249,471,269 | |
Gross tax appreciation of investments | $ | 286,894,484 | |
Gross tax depreciation of investments | (165,661,503 | ) | |
Net tax appreciation (depreciation) of investments | $ | 121,232,981 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2018, the fund had accumulated short-term capital losses of $(138,201,902), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
19
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||||||
2019(3) | $10.19 | —(4) | 0.24 | 0.24 | (0.05) | — | (0.05) | $10.38 | 2.41% | 1.25%(5) | 1.25%(5) | 0.10%(5) | 0.10%(5) | 26% | $629,224 | ||
2018 | $12.00 | 0.08 | (1.80) | (1.72) | (0.03) | (0.06) | (0.09) | $10.19 | (14.57)% | 1.18% | 1.29% | 0.71% | 0.60% | 36% | $980,765 | ||
2017 | $8.57 | 0.02 | 3.44 | 3.46 | (0.03) | — | (0.03) | $12.00 | 40.46% | 1.18% | 1.50% | 0.19% | (0.13)% | 47% | $883,436 | ||
2016 | $8.10 | 0.02 | 0.46 | 0.48 | (0.01) | — | (0.01) | $8.57 | 5.95% | 1.38% | 1.63% | 0.30% | 0.05% | 59% | $470,280 | ||
2015 | $9.00 | 0.03 | (0.92) | (0.89) | (0.01) | — | (0.01) | $8.10 | (9.93)% | 1.43% | 1.68% | 0.30% | 0.05% | 58% | $399,694 | ||
2014 | $8.87 | 0.03 | 0.13 | 0.16 | (0.03) | — | (0.03) | $9.00 | 1.84% | 1.45% | 1.70% | 0.29% | 0.04% | 74% | $393,357 | ||
I Class | |||||||||||||||||
2019(3) | $10.46 | 0.02 | 0.24 | 0.26 | (0.07) | — | (0.07) | $10.65 | 2.45% | 1.05%(5) | 1.05%(5) | 0.30%(5) | 0.30%(5) | 26% | $1,248,219 | ||
2018 | $12.32 | 0.11 | (1.85) | (1.74) | (0.06) | (0.06) | (0.12) | $10.46 | (14.35)% | 0.98% | 1.09% | 0.91% | 0.80% | 36% | $897,336 | ||
2017 | $8.79 | 0.04 | 3.54 | 3.58 | (0.05) | — | (0.05) | $12.32 | 40.86% | 0.94% | 1.26% | 0.43% | 0.11% | 47% | $505,000 | ||
2016 | $8.31 | 0.04 | 0.47 | 0.51 | (0.03) | — | (0.03) | $8.79 | 6.13% | 1.18% | 1.43% | 0.50% | 0.25% | 59% | $37,036 | ||
2015 | $9.24 | 0.02 | (0.93) | (0.91) | (0.02) | — | (0.02) | $8.31 | (9.83)% | 1.23% | 1.48% | 0.50% | 0.25% | 58% | $4,797 | ||
2014 | $9.09 | 0.05 | 0.14 | 0.19 | (0.04) | — | (0.04) | $9.24 | 2.07% | 1.25% | 1.50% | 0.49% | 0.24% | 74% | $16,300 | ||
Y Class | |||||||||||||||||
2019(3) | $10.49 | 0.03 | 0.25 | 0.28 | (0.09) | — | (0.09) | $10.68 | 2.59% | 0.90%(5) | 0.90%(5) | 0.45%(5) | 0.45%(5) | 26% | $9,009 | ||
2018 | $12.34 | 0.08 | (1.81) | (1.73) | (0.06) | (0.06) | (0.12) | $10.49 | (14.23)% | 0.83% | 0.94% | 1.06% | 0.95% | 36% | $4,724 | ||
2017(6) | $9.79 | 0.07 | 2.48 | 2.55 | — | — | — | $12.34 | 26.05% | 0.77%(5) | 1.12%(5) | 0.91%(5) | 0.56%(5) | 47%(7) | $6 | ||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
A Class | |||||||||||||||||
2019(3) | $9.81 | (0.01) | 0.24 | 0.23 | (0.02) | — | (0.02) | $10.02 | 2.33% | 1.50%(5) | 1.50%(5) | (0.15)%(5) | (0.15)%(5) | 26% | $75,118 | ||
2018 | $11.57 | 0.05 | (1.75) | (1.70) | — | (0.06) | (0.06) | $9.81 | (14.80)% | 1.43% | 1.54% | 0.46% | 0.35% | 36% | $72,711 | ||
2017 | $8.26 | —(4) | 3.32 | 3.32 | (0.01) | — | (0.01) | $11.57 | 40.16% | 1.43% | 1.75% | (0.06)% | (0.38)% | 47% | $61,586 | ||
2016 | $7.82 | 0.01 | 0.43 | 0.44 | — | — | — | $8.26 | 5.63% | 1.63% | 1.88% | 0.05% | (0.20)% | 59% | $37,743 | ||
2015 | $8.70 | 0.01 | (0.89) | (0.88) | — | — | — | $7.82 | (10.11)% | 1.68% | 1.93% | 0.05% | (0.20)% | 58% | $25,632 | ||
2014 | $8.59 | 0.01 | 0.12 | 0.13 | (0.02) | — | (0.02) | $8.70 | 1.59% | 1.70% | 1.95% | 0.04% | (0.21)% | 74% | $9,278 | ||
C Class | |||||||||||||||||
2019(3) | $8.93 | (0.04) | 0.21 | 0.17 | — | — | — | $9.10 | 1.90% | 2.25%(5) | 2.25%(5) | (0.90)%(5) | (0.90)%(5) | 26% | $31,562 | ||
2018 | $10.61 | (0.03) | (1.59) | (1.62) | — | (0.06) | (0.06) | $8.93 | (15.39)% | 2.18% | 2.29% | (0.29)% | (0.40)% | 36% | $31,871 | ||
2017 | $7.63 | (0.08) | 3.06 | 2.98 | — | — | — | $10.61 | 39.06% | 2.16% | 2.48% | (0.79)% | (1.11)% | 47% | $24,972 | ||
2016 | $7.28 | (0.05) | 0.40 | 0.35 | — | — | — | $7.63 | 4.81% | 2.38% | 2.63% | (0.70)% | (0.95)% | 59% | $5,840 | ||
2015 | $8.15 | (0.05) | (0.82) | (0.87) | — | — | — | $7.28 | (10.67)% | 2.43% | 2.68% | (0.70)% | (0.95)% | 58% | $3,149 | ||
2014 | $8.09 | (0.06) | 0.13 | 0.07 | (0.01) | — | (0.01) | $8.15 | 0.82% | 2.45% | 2.70% | (0.71)% | (0.96)% | 74% | $3,129 | ||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
R Class | |||||||||||||||||
2019(3) | $9.85 | (0.02) | 0.23 | 0.21 | — | — | — | $10.06 | 2.13% | 1.75%(5) | 1.75%(5) | (0.40)%(5) | (0.40)%(5) | 26% | $6,322 | ||
2018 | $11.64 | 0.02 | (1.75) | (1.73) | — | (0.06) | (0.06) | $9.85 | (14.97)% | 1.68% | 1.79% | 0.21% | 0.10% | 36% | $5,825 | ||
2017 | $8.33 | (0.02) | 3.33 | 3.31 | — | — | — | $11.64 | 39.74% | 1.68% | 2.00% | (0.31)% | (0.63)% | 47% | $4,811 | ||
2016 | $7.90 | (0.02) | 0.45 | 0.43 | — | — | — | $8.33 | 5.44% | 1.88% | 2.13% | (0.20)% | (0.45)% | 59% | $2,340 | ||
2015 | $8.82 | (0.02) | (0.90) | (0.92) | — | — | — | $7.90 | (10.43)% | 1.93% | 2.18% | (0.20)% | (0.45)% | 58% | $1,425 | ||
2014 | $8.72 | (0.02) | 0.14 | 0.12 | (0.02) | — | (0.02) | $8.82 | 1.38% | 1.95% | 2.20% | (0.21)% | (0.46)% | 74% | $1,712 | ||
R5 Class | |||||||||||||||||
2019(3) | $10.47 | 0.01 | 0.25 | 0.26 | (0.07) | — | (0.07) | $10.66 | 2.44% | 1.05%(5) | 1.05%(5) | 0.30%(5) | 0.30%(5) | 26% | $2,967 | ||
2018 | $12.32 | 0.12 | (1.86) | (1.74) | (0.05) | (0.06) | (0.11) | $10.47 | (14.33)% | 0.98% | 1.09% | 0.91% | 0.80% | 36% | $4,521 | ||
2017(6) | $9.78 | 0.03 | 2.51 | 2.54 | — | — | — | $12.32 | 25.97% | 0.92%(5) | 1.27%(5) | 0.78%(5) | 0.43%(5) | 47%(7) | $46 | ||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
R6 Class | |||||||||||||||||
2019(3) | $10.48 | 0.03 | 0.24 | 0.27 | (0.09) | — | (0.09) | $10.66 | 2.59% | 0.90%(5) | 0.90%(5) | 0.45%(5) | 0.45%(5) | 26% | $337,712 | ||
2018 | $12.34 | 0.12 | (1.84) | (1.72) | (0.08) | (0.06) | (0.14) | $10.48 | (14.28)% | 0.83% | 0.94% | 1.06% | 0.95% | 36% | $239,031 | ||
2017 | $8.81 | 0.06 | 3.53 | 3.59 | (0.06) | — | (0.06) | $12.34 | 40.98% | 0.83% | 1.15% | 0.54% | 0.22% | 47% | $92,470 | ||
2016 | $8.33 | 0.06 | 0.46 | 0.52 | (0.04) | — | (0.04) | $8.81 | 6.27% | 1.03% | 1.28% | 0.65% | 0.40% | 59% | $34,065 | ||
2015 | $9.25 | 0.07 | (0.95) | (0.88) | (0.04) | — | (0.04) | $8.33 | (9.58)% | 1.08% | 1.33% | 0.65% | 0.40% | 58% | $24,965 | ||
2014 | $9.09 | —(4) | 0.20 | 0.20 | (0.04) | — | (0.04) | $9.25 | 2.23% | 1.10% | 1.35% | 0.64% | 0.39% | 74% | $15,174 | ||
Notes to Financial Highlights | |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2019 (unaudited). |
(4) | Per-share amount was less than $0.005. |
(5) | Annualized. |
(6) | April 10, 2017 (commencement of sale) through November 30, 2017. |
(7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2017. |
See Notes to Financial Statements.
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
 | ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2019 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92633 1907 | ||
Semiannual Report | |
May 31, 2019 | |
Emerging Markets Small Cap Fund | |
Investor Class (AECVX) | |
I Class (AECSX) | |
A Class (AECLX) | |
C Class (AECHX) | |
R Class (AECMX) | |
R6 Class (AECTX) | |
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 |
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 |
Jonathan ThomasDear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2019. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, please visit our website, americancentury.com.
Trade Tensions Tempered Stock Gains
Sharp sell-offs opened and closed the six-month reporting period, with a rally in the middle. Mounting investors’ concerns about slowing global economic and earnings growth, U.S.-China trade tensions, falling oil prices and rising U.S. interest rates triggered the December 2018 sell-off. Despite signs that global growth was slowing, the Federal Reserve (Fed) raised interest rates in December, its fourth rate hike of the year. Investors feared this rate increase combined with the Fed’s bullish 2019 rate-hike outlook were too aggressive, further fueling the sell-off.
The new year brought a renewed sense of stability to the global financial markets and a new round of risk-on investing. Investors’ worst-case fears about growth and trade eased, and corporate earnings results were generally better than expected. Central banks in Europe and Japan continued to pursue dovish policies, and the Fed ended its rate-hike strategy amid moderating global growth and inflation. Additionally, equity valuations appeared attractive following the late-2018 stock market sell-off.
Investor sentiment took another U-turn in May. Heightened U.S.-China trade tensions and a new round of tariffs threatened global growth. Global oil prices plunged, contributing to the unrest. Then, late in the month, U.K. Prime Minister Theresa May’s resignation reignited fears of a no-deal Brexit. Against this backdrop, investors fled global stocks in favor of perceived safe-haven assets.
Despite the steep sell-offs in December and May, global stocks held onto modest gains for the entire six-month period. Non-U.S. stocks generally outperformed U.S. stocks. Among non-U.S. stocks, developed markets broadly outperformed emerging markets.
Looking ahead, we expect volatility to remain a formidable factor as investors react to global growth data, trade conflicts, 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,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2019 | |
Top Ten Holdings | % of net assets |
Fila Korea Ltd. | 2.9% |
Asia Cement Corp. | 2.3% |
Chailease Holding Co. Ltd. | 2.2% |
Indraprastha Gas Ltd. | 2.0% |
International Container Terminal Services, Inc. | 1.9% |
Baozun, Inc. ADR | 1.9% |
Capitec Bank Holdings Ltd. | 1.8% |
Bank Tabungan Pensiunan Nasional Syariah Tbk PT | 1.8% |
Bata India Ltd. | 1.8% |
Bharat Financial Inclusion Ltd. | 1.7% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 98.2% |
Warrants | —* |
Total Equity Exposure | 98.2% |
Temporary Cash Investments | 1.6% |
Other Assets and Liabilities | 0.2% |
* Category is less than 0.05% of total net assets. | |
Investments by Country | % of net assets |
China | 16.8% |
India | 12.6% |
South Korea | 12.3% |
Taiwan | 11.5% |
Brazil | 8.7% |
Thailand | 6.9% |
Indonesia | 6.3% |
Philippines | 5.4% |
South Africa | 4.5% |
Mexico | 3.3% |
Chile | 3.1% |
Russia | 2.0% |
Other Countries | 4.8% |
Cash and Equivalents* | 1.8% |
* Includes temporary cash investments and other assets and liabilities. | |
3
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 December 1, 2018 to May 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.
4
Beginning Account Value 12/1/18 | Ending Account Value 5/31/19 | Expenses Paid During Period(1) 12/1/18 - 5/31/19 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,034.40 | $8.17 | 1.61% |
I Class | $1,000 | $1,035.20 | $7.15 | 1.41% |
A Class | $1,000 | $1,033.60 | $9.43 | 1.86% |
C Class | $1,000 | $1,029.30 | $13.20 | 2.61% |
R Class | $1,000 | $1,031.00 | $10.68 | 2.11% |
R6 Class | $1,000 | $1,036.10 | $6.40 | 1.26% |
Hypothetical | ||||
Investor Class | $1,000 | $1,016.90 | $8.10 | 1.61% |
I Class | $1,000 | $1,017.90 | $7.09 | 1.41% |
A Class | $1,000 | $1,015.66 | $9.35 | 1.86% |
C Class | $1,000 | $1,011.92 | $13.09 | 2.61% |
R Class | $1,000 | $1,014.41 | $10.60 | 2.11% |
R6 Class | $1,000 | $1,018.65 | $6.34 | 1.26% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 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. |
5
Schedule of Investments |
MAY 31, 2019 (UNAUDITED)
Shares | Value | |||
COMMON STOCKS — 98.2% | ||||
Brazil — 8.7% | ||||
Arco Platform Ltd., Class A(1) | 2,957 | $ | 113,549 | |
Banco ABC Brasil SA Preference Shares | 31,245 | 144,522 | ||
BK Brasil Operacao e Assessoria a Restaurantes SA | 20,800 | 106,281 | ||
Cia de Locacao das Americas | 9,800 | 111,113 | ||
Equatorial Energia SA | 5,800 | 127,560 | ||
Fleury SA | 15,500 | 77,936 | ||
Localiza Rent a Car SA | 12,984 | 126,069 | ||
Magazine Luiza SA | 2,900 | 144,270 | ||
951,300 | ||||
Chile — 3.1% | ||||
CAP SA | 12,520 | 124,419 | ||
Geopark Ltd.(1) | 8,273 | 130,796 | ||
Itau CorpBanca | 10,253,248 | 80,881 | ||
336,096 | ||||
China — 16.8% | ||||
Anton Oilfield Services Group | 902,000 | 114,556 | ||
Baozun, Inc. ADR(1) | 5,240 | 205,565 | ||
Brilliance China Automotive Holdings Ltd. | 116,000 | 117,671 | ||
China Education Group Holdings Ltd.(2) | 91,000 | 139,919 | ||
China Everbright Greentech Ltd. | 109,000 | 68,833 | ||
China Foods Ltd. | 168,000 | 64,211 | ||
China Resources Cement Holdings Ltd. | 54,000 | 46,712 | ||
CIFI Holdings Group Co. Ltd. | 172,000 | 102,499 | ||
Country Garden Services Holdings Co. Ltd. | 65,000 | 132,899 | ||
Far East Horizon Ltd. | 108,000 | 115,041 | ||
GDS Holdings Ltd. ADR(1) | 5,541 | 180,027 | ||
KWG Group Holdings Ltd. | 96,500 | 96,544 | ||
Li Ning Co. Ltd.(1) | 96,000 | 158,480 | ||
TAL Education Group ADR(1) | 3,357 | 115,514 | ||
West China Cement Ltd. | 728,000 | 99,203 | ||
Wisdom Education International Holdings Co. Ltd. | 178,000 | 92,583 | ||
1,850,257 | ||||
Czech Republic — 0.7% | ||||
Moneta Money Bank AS | 22,051 | 71,983 | ||
Egypt — 0.5% | ||||
Juhayna Food Industries | 76,878 | 50,523 | ||
Greece — 0.9% | ||||
JUMBO SA | 5,387 | 95,666 | ||
Hong Kong — 0.8% | ||||
Times China Holdings Ltd. | 56,000 | 92,440 | ||
6
Shares | Value | |||
India — 12.6% | ||||
Bata India Ltd. | 10,319 | $ | 196,118 | |
Bharat Financial Inclusion Ltd.(1) | 12,836 | 184,289 | ||
Crompton Greaves Consumer Electricals Ltd. | 41,960 | 144,091 | ||
Indraprastha Gas Ltd. | 44,838 | 216,734 | ||
Jubilant Foodworks Ltd. | 8,643 | 162,666 | ||
L&T Technology Services Ltd. | 4,530 | 114,317 | ||
Larsen & Toubro Infotech Ltd. | 4,395 | 112,495 | ||
Torrent Pharmaceuticals Ltd. | 5,551 | 124,925 | ||
Zydus Wellness Ltd. | 6,994 | 132,721 | ||
1,388,356 | ||||
Indonesia — 6.3% | ||||
Ace Hardware Indonesia Tbk PT | 1,460,300 | 177,460 | ||
Bank Tabungan Pensiunan Nasional Syariah Tbk PT(1) | 1,004,700 | 200,608 | ||
Mitra Adiperkasa Tbk PT | 2,293,100 | 141,262 | ||
Semen Indonesia Persero Tbk PT | 150,800 | 121,943 | ||
Waskita Karya Persero Tbk PT | 409,900 | 51,939 | ||
693,212 | ||||
Malaysia — 0.8% | ||||
Carlsberg Brewery Malaysia Bhd | 14,500 | 84,610 | ||
Mexico — 3.3% | ||||
Grupo Aeroportuario del Centro Norte SAB de CV | 28,547 | 172,604 | ||
Grupo Cementos de Chihuahua SAB de CV | 9,857 | 53,241 | ||
Regional SAB de CV | 28,267 | 137,003 | ||
362,848 | ||||
Philippines — 5.4% | ||||
Bloomberry Resorts Corp. | 702,600 | 159,570 | ||
International Container Terminal Services, Inc. | 79,230 | 206,454 | ||
MacroAsia Corp. | 153,200 | 61,639 | ||
Wilcon Depot, Inc. | 495,800 | 161,321 | ||
588,984 | ||||
Russia — 2.0% | ||||
TCS Group Holding plc GDR | 6,116 | 116,019 | ||
Yandex NV, A Shares(1) | 2,813 | 101,043 | ||
217,062 | ||||
South Africa — 4.5% | ||||
Capitec Bank Holdings Ltd. | 2,231 | 201,988 | ||
Clicks Group Ltd. | 8,505 | 111,239 | ||
Discovery Ltd. | 7,362 | 70,036 | ||
Foschini Group Ltd. (The) | 4,839 | 58,756 | ||
JSE Ltd. | 5,179 | 51,847 | ||
493,866 | ||||
South Korea — 12.3% | ||||
CJ Logistics Corp.(1) | 858 | 114,759 | ||
Cosmax, Inc. | 1,506 | 141,117 | ||
Doosan Bobcat, Inc. | 3,554 | 100,462 | ||
Doosan Infracore Co. Ltd.(1) | 7,107 | 38,989 | ||
7
Shares | Value | |||
Fila Korea Ltd. | 4,804 | $ | 313,043 | |
Han Kuk Carbon Co. Ltd. | 18,336 | 121,855 | ||
Hotel Shilla Co. Ltd. | 823 | 65,020 | ||
Hyundai Mipo Dockyard Co. Ltd. | 4,098 | 164,920 | ||
Koh Young Technology, Inc. | 700 | 53,252 | ||
Kumho Petrochemical Co. Ltd. | 1,252 | 100,329 | ||
NongShim Co. Ltd. | 214 | 43,339 | ||
POSCO Chemical Co. Ltd. | 1,190 | 54,191 | ||
Studio Dragon Corp.(1) | 699 | 43,202 | ||
1,354,478 | ||||
Taiwan — 11.5% | ||||
Asia Cement Corp. | 176,000 | 250,638 | ||
Chailease Holding Co. Ltd. | 65,280 | 239,309 | ||
Chroma ATE, Inc. | 38,000 | 155,578 | ||
Machvision, Inc. | 5,000 | 59,185 | ||
Merida Industry Co. Ltd. | 30,000 | 162,646 | ||
Taiwan Union Technology Corp. | 45,000 | 159,989 | ||
TCI Co. Ltd. | 8,712 | 137,726 | ||
Vanguard International Semiconductor Corp. | 52,000 | 98,525 | ||
1,263,596 | ||||
Thailand — 6.9% | ||||
Bangkok Chain Hospital PCL | 240,000 | 122,095 | ||
Digital Telecommunications Infrastructure Fund | 358,800 | 180,270 | ||
Minor International PCL | 50,200 | 61,557 | ||
Muangthai Capital PCL | 56,000 | 95,030 | ||
Plan B Media PCL,F Shares | 732,700 | 156,345 | ||
Srisawad Corp. PCL | 94,060 | 147,914 | ||
763,211 | ||||
Turkey — 1.1% | ||||
Mavi Giyim Sanayi Ve Ticaret AS, B Shares | 12,479 | 73,298 | ||
Sok Marketler Ticaret AS(1) | 34,466 | 51,900 | ||
125,198 | ||||
TOTAL COMMON STOCKS (Cost $9,889,669) | 10,783,686 | |||
WARRANTS† | ||||
Thailand† | ||||
Minor International PCL(1) (Cost $—) | 2,510 | — | ||
TEMPORARY CASH INVESTMENTS — 1.6% | ||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.00%, 4/30/20 - 2/15/48, valued at $159,173), in a joint trading account at 2.30%, dated 5/31/19, due 6/3/19 (Delivery value $156,085) | 156,055 | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 17,014 | 17,014 | ||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $173,069) | 173,069 | |||
TOTAL INVESTMENT SECURITIES — 99.8% (Cost $10,062,738) | 10,956,755 | |||
OTHER ASSETS AND LIABILITIES — 0.2% | 22,177 | |||
TOTAL NET ASSETS — 100.0% | $ | 10,978,932 | ||
8
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Consumer Discretionary | 28.8 | % |
Financials | 17.1 | % |
Industrials | 12.8 | % |
Materials | 8.8 | % |
Consumer Staples | 7.5 | % |
Information Technology | 7.4 | % |
Communication Services | 4.3 | % |
Utilities | 3.8 | % |
Health Care | 2.9 | % |
Real Estate | 2.6 | % |
Energy | 2.2 | % |
Cash and Equivalents* | 1.8 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
GDR | - | Global Depositary Receipt |
† | Category is less than 0.05% of total net assets. |
(1) | Non-income producing. |
(2) | Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $132,923. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers. At period end, the aggregate market value of the collateral held by the fund was $142,643, all of which is securities collateral. |
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2019 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $10,062,738) | $ | 10,956,755 | |
Cash | 1,040 | ||
Foreign currency holdings, at value (cost of $3,866) | 3,902 | ||
Receivable for capital shares sold | 357 | ||
Dividends and interest receivable | 33,799 | ||
Securities lending receivable | 408 | ||
10,996,261 | |||
Liabilities | |||
Payable for capital shares redeemed | 638 | ||
Accrued management fees | 14,724 | ||
Distribution and service fees payable | 1,489 | ||
Accrued foreign taxes | 478 | ||
17,329 | |||
Net Assets | $ | 10,978,932 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 10,664,818 | |
Distributable earnings | 314,114 | ||
$ | 10,978,932 | ||
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $5,823,654 | 500,736 | $11.63 | |||
I Class, $0.01 Par Value | $1,941,064 | 166,497 | $11.66 | |||
A Class, $0.01 Par Value | $1,353,714 | 116,728 | $11.60* | |||
C Class, $0.01 Par Value | $1,193,543 | 103,980 | $11.48 | |||
R Class, $0.01 Par Value | $417,896 | 36,137 | $11.56 | |||
R6 Class, $0.01 Par Value | $249,061 | 21,326 | $11.68 | |||
*Maximum offering price $12.31 (net asset value divided by 0.9425).
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $13,955) | $ | 113,500 | |
Interest | 2,094 | ||
Securities lending, net | 795 | ||
116,389 | |||
Expenses: | |||
Management fees | 85,261 | ||
Distribution and service fees: | |||
A Class | 1,669 | ||
C Class | 5,977 | ||
R Class | 1,007 | ||
Directors' fees and expenses | 150 | ||
Other expenses | 269 | ||
94,333 | |||
Net investment income (loss) | 22,056 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions (net of foreign tax expenses paid (refunded) of $579) | (524,854 | ) | |
Foreign currency translation transactions | (11,698 | ) | |
(536,552 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $(478)) | 852,367 | ||
Translation of assets and liabilities in foreign currencies | 54 | ||
852,421 | |||
Net realized and unrealized gain (loss) | 315,869 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 337,925 | |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2018 | ||||||
Increase (Decrease) in Net Assets | May 31, 2019 | November 30, 2018 | ||||
Operations | ||||||
Net investment income (loss) | $ | 22,056 | $ | 20,668 | ||
Net realized gain (loss) | (536,552 | ) | 517,202 | |||
Change in net unrealized appreciation (depreciation) | 852,421 | (2,372,120 | ) | |||
Net increase (decrease) in net assets resulting from operations | 337,925 | (1,834,250 | ) | |||
Distributions to Shareholders | ||||||
From earnings: | ||||||
Investor Class | (211,250 | ) | (78,924 | ) | ||
I Class | (47,717 | ) | (11,182 | ) | ||
A Class | (42,563 | ) | (17,599 | ) | ||
C Class | (41,460 | ) | (1,980 | ) | ||
R Class | (13,422 | ) | (2,168 | ) | ||
R6 Class | (8,507 | ) | (4,150 | ) | ||
Decrease in net assets from distributions | (364,919 | ) | (116,003 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 793,928 | 529,189 | ||||
Net increase (decrease) in net assets | 766,934 | (1,421,064 | ) | |||
Net Assets | ||||||
Beginning of period | 10,211,998 | 11,633,062 | ||||
End of period | $ | 10,978,932 | $ | 10,211,998 | ||
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2019 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Emerging Markets Small Cap Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital growth.
The fund offers the Investor Class, I Class, A Class, C Class, R Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value 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.
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
13
fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
14
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. ACIM owns 56% of the shares of the fund. Related parties do not invest in the fund for the purpose of exercising management or control.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that 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 annual management fee for each class is as follows:
Investor Class | I Class | A Class | C Class | R Class | R6 Class |
1.60% | 1.40% | 1.60% | 1.60% | 1.60% | 1.25% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 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.
15
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2019 were $3,877,044 and $3,380,752, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2019 | Year ended November 30, 2018 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 40,000,000 | 50,000,000 | ||||||||
Sold | 86,081 | $ | 1,014,480 | 385,055 | $ | 5,438,357 | ||||
Issued in reinvestment of distributions | 19,297 | 210,336 | 5,727 | 78,175 | ||||||
Redeemed | (112,000 | ) | (1,308,247 | ) | (387,314 | ) | (5,315,103 | ) | ||
(6,622 | ) | (83,431 | ) | 3,468 | 201,429 | |||||
I Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 54,332 | 639,200 | 54,211 | 695,641 | ||||||
Issued in reinvestment of distributions | 4,370 | 47,717 | 820 | 11,182 | ||||||
Redeemed | (3,742 | ) | (43,313 | ) | (4,133 | ) | (52,760 | ) | ||
54,960 | 643,604 | 50,898 | 654,063 | |||||||
A Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 11,122 | 120,009 | 581 | 8,802 | ||||||
Issued in reinvestment of distributions | 3,908 | 42,563 | 1,288 | 17,599 | ||||||
Redeemed | (2,030 | ) | (23,328 | ) | (41,571 | ) | (462,502 | ) | ||
13,000 | 139,244 | (39,702 | ) | (436,101 | ) | |||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Issued in reinvestment of distributions | 3,835 | 41,460 | 145 | 1,980 | ||||||
R Class/Shares Authorized | 20,000,000 | 30,000,000 | ||||||||
Sold | 4,391 | 50,858 | 13,676 | 173,754 | ||||||
Issued in reinvestment of distributions | 1,235 | 13,422 | 159 | 2,168 | ||||||
Redeemed | (1,705 | ) | (19,736 | ) | (5,947 | ) | (72,254 | ) | ||
3,921 | 44,544 | 7,888 | 103,668 | |||||||
R6 Class/Shares Authorized | 20,000,000 | 30,000,000 | ||||||||
Issued in reinvestment of distributions | 778 | 8,507 | 304 | 4,150 | ||||||
Net increase (decrease) | 69,872 | $ | 793,928 | 23,001 | $ | 529,189 | ||||
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.
16
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | ||||||||
Brazil | $ | 113,549 | $ | 837,751 | — | |||
Chile | 130,796 | 205,300 | — | |||||
China | 501,106 | 1,349,151 | — | |||||
Russia | 101,043 | 116,019 | — | |||||
Other Countries | — | 7,428,971 | — | |||||
Warrants | — | — | — | |||||
Temporary Cash Investments | 17,014 | 156,055 | — | |||||
$ | 863,508 | $ | 10,093,247 | — | ||||
7. 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 in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 10,079,078 | |
Gross tax appreciation of investments | $ | 1,565,999 | |
Gross tax depreciation of investments | (688,322 | ) | |
Net tax appreciation (depreciation) of investments | $ | 877,677 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
17
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |
Investor Class | |||||||||||||
2019(3) | $11.68 | 0.03 | 0.33 | 0.36 | — | (0.41) | (0.41) | $11.63 | 3.44% | 1.61%(4) | 0.52%(4) | 31% | $5,824 |
2018 | $13.66 | 0.04 | (1.86) | (1.82) | (0.14) | (0.02) | (0.16) | $11.68 | (13.59)% | 1.60% | 0.31% | 75% | $5,924 |
2017 | $10.45 | (0.03) | 3.33 | 3.30 | (0.09) | — | (0.09) | $13.66 | 31.85% | 1.61% | (0.16)% | 49% | $6,884 |
2016(5) | $10.00 | 0.04 | 0.41 | 0.45 | — | — | — | $10.45 | 4.50% | 1.60%(4) | 0.59%(4) | 51% | $2,373 |
I Class | |||||||||||||
2019(3) | $11.69 | 0.05 | 0.33 | 0.38 | — | (0.41) | (0.41) | $11.66 | 3.52% | 1.41%(4) | 0.72%(4) | 31% | $1,941 |
2018 | $13.68 | 0.06 | (1.86) | (1.80) | (0.17) | (0.02) | (0.19) | $11.69 | (13.39)% | 1.40% | 0.51% | 75% | $1,304 |
2017 | $10.46 | 0.01 | 3.32 | 3.33 | (0.11) | — | (0.11) | $13.68 | 32.18% | 1.41% | 0.04% | 49% | $829 |
2016(5) | $10.00 | 0.05 | 0.41 | 0.46 | — | — | — | $10.46 | 4.60% | 1.40%(4) | 0.79%(4) | 51% | $628 |
A Class | |||||||||||||
2019(3) | $11.66 | 0.02 | 0.33 | 0.35 | — | (0.41) | (0.41) | $11.60 | 3.36% | 1.86%(4) | 0.27%(4) | 31% | $1,354 |
2018 | $13.64 | 0.01 | (1.86) | (1.85) | (0.11) | (0.02) | (0.13) | $11.66 | (13.82)% | 1.85% | 0.06% | 75% | $1,209 |
2017 | $10.43 | (0.04) | 3.31 | 3.27 | (0.06) | — | (0.06) | $13.64 | 31.57% | 1.86% | (0.41)% | 49% | $1,956 |
2016(5) | $10.00 | 0.02 | 0.41 | 0.43 | — | — | — | $10.43 | 4.30% | 1.85%(4) | 0.34%(4) | 51% | $1,043 |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |
C Class | |||||||||||||
2019(3) | $11.58 | (0.03) | 0.34 | 0.31 | — | (0.41) | (0.41) | $11.48 | 2.93% | 2.61%(4) | (0.48)%(4) | 31% | $1,194 |
2018 | $13.55 | (0.10) | (1.85) | (1.95) | —(6) | (0.02) | (0.02) | $11.58 | (14.41)% | 2.60% | (0.69)% | 75% | $1,160 |
2017 | $10.38 | (0.13) | 3.30 | 3.17 | — | — | — | $13.55 | 30.54% | 2.61% | (1.16)% | 49% | $1,355 |
2016(5) | $10.00 | (0.03) | 0.41 | 0.38 | — | — | — | $10.38 | 3.80% | 2.60%(4) | (0.41)%(4) | 51% | $1,038 |
R Class | |||||||||||||
2019(3) | $11.64 | —(6) | 0.33 | 0.33 | — | (0.41) | (0.41) | $11.56 | 3.10% | 2.11%(4) | 0.02%(4) | 31% | $418 |
2018 | $13.62 | (0.03) | (1.86) | (1.89) | (0.07) | (0.02) | (0.09) | $11.64 | (13.98)% | 2.10% | (0.19)% | 75% | $375 |
2017 | $10.41 | (0.07) | 3.32 | 3.25 | (0.04) | — | (0.04) | $13.62 | 31.30% | 2.11% | (0.66)% | 49% | $331 |
2016(5) | $10.00 | 0.01 | 0.40 | 0.41 | — | — | — | $10.41 | 4.10% | 2.10%(4) | 0.09%(4) | 51% | $212 |
R6 Class | |||||||||||||
2019(3) | $11.70 | 0.05 | 0.34 | 0.39 | — | (0.41) | (0.41) | $11.68 | 3.61% | 1.26%(4) | 0.87%(4) | 31% | $249 |
2018 | $13.69 | 0.08 | (1.86) | (1.78) | (0.19) | (0.02) | (0.21) | $11.70 | (13.25)% | 1.25% | 0.66% | 75% | $240 |
2017 | $10.47 | 0.03 | 3.31 | 3.34 | (0.12) | — | (0.12) | $13.69 | 32.35% | 1.26% | 0.19% | 49% | $277 |
2016(5) | $10.00 | 0.06 | 0.41 | 0.47 | — | — | — | $10.47 | 4.70% | 1.25%(4) | 0.94%(4) | 51% | $209 |
Notes to Financial Highlights | |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2019 (unaudited). |
(4) | Annualized. |
(5) | April 7, 2016 (fund inception) through November 30, 2016. |
(6) | Per-share amount was less than $0.005. |
See Notes to Financial Statements.
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.
21
Notes |
22
Notes |
23
Notes |
24
| ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2019 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92636 1907 | ||
Semiannual Report | |
May 31, 2019 | |
Focused International Growth Fund | |
Investor Class (AFCNX) | |
I Class (AFCSX) | |
A Class (AFCLX) | |
C Class (AFCHX) | |
R Class (AFCWX) | |
R6 Class (AFCMX) | |
G Class (AFCGX) | |
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 |
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 |
Jonathan ThomasDear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2019. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, please visit our website, americancentury.com.
Trade Tensions Tempered Stock Gains
Sharp sell-offs opened and closed the six-month reporting period, with a rally in the middle. Mounting investors’ concerns about slowing global economic and earnings growth, U.S.-China trade tensions, falling oil prices and rising U.S. interest rates triggered the December 2018 sell-off. Despite signs that global growth was slowing, the Federal Reserve (Fed) raised interest rates in December, its fourth rate hike of the year. Investors feared this rate increase combined with the Fed’s bullish 2019 rate-hike outlook were too aggressive, further fueling the sell-off.
The new year brought a renewed sense of stability to the global financial markets and a new round of risk-on investing. Investors’ worst-case fears about growth and trade eased, and corporate earnings results were generally better than expected. Central banks in Europe and Japan continued to pursue dovish policies, and the Fed ended its rate-hike strategy amid moderating global growth and inflation. Additionally, equity valuations appeared attractive following the late-2018 stock market sell-off.
Investor sentiment took another U-turn in May. Heightened U.S.-China trade tensions and a new round of tariffs threatened global growth. Global oil prices plunged, contributing to the unrest. Then, late in the month, U.K. Prime Minister Theresa May’s resignation reignited fears of a no-deal Brexit. Against this backdrop, investors fled global stocks in favor of perceived safe-haven assets.
Despite the steep sell-offs in December and May, global stocks held onto modest gains for the entire six-month period. Non-U.S. stocks generally outperformed U.S. stocks. Among non-U.S. stocks, developed markets broadly outperformed emerging markets.
Looking ahead, we expect volatility to remain a formidable factor as investors react to global growth data, trade conflicts, 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,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2019 | |
Top Ten Holdings | % of net assets |
AIA Group Ltd. | 4.2% |
CSL Ltd. | 3.6% |
Recruit Holdings Co. Ltd. | 3.5% |
London Stock Exchange Group plc | 3.4% |
Diageo plc | 3.3% |
Symrise AG | 3.3% |
Novartis AG | 3.2% |
Lonza Group AG | 3.0% |
AstraZeneca plc | 3.0% |
Koninklijke DSM NV | 3.0% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 99.5% |
Temporary Cash Investments | 0.3% |
Other Assets and Liabilities | 0.2% |
Investments by Country | % of net assets |
Japan | 15.6% |
United Kingdom | 11.9% |
Switzerland | 9.1% |
Netherlands | 7.7% |
France | 7.5% |
China | 7.3% |
Sweden | 5.8% |
Australia | 5.0% |
Hong Kong | 4.2% |
Brazil | 4.0% |
Germany | 3.3% |
India | 2.5% |
Spain | 2.4% |
Finland | 2.4% |
Indonesia | 2.2% |
Austria | 2.1% |
Other Countries | 6.5% |
Cash and Equivalents* | 0.5% |
*Includes temporary cash investments and other assets and liabilities.
3
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 December 1, 2018 to May 31, 2019 (except as noted).
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.
4
Beginning Account Value 12/1/18 | Ending Account Value 5/31/19 | Expenses Paid During Period(1) 12/1/18 - 5/31/19 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,061.10 | $6.37 | 1.24% |
I Class | $1,000 | $1,061.40 | $5.34 | 1.04% |
A Class | $1,000 | $1,059.60 | $7.65 | 1.49% |
C Class | $1,000 | $1,055.60 | $11.48 | 2.24% |
R Class | $1,000 | $1,058.00 | $8.93 | 1.74% |
R6 Class | $1,000 | $1,062.80 | $4.58 | 0.89% |
G Class | $1,000 | $977.60(2) | $0.02(3) | 0.01% |
Hypothetical | ||||
Investor Class | $1,000 | $1,018.75 | $6.24 | 1.24% |
I Class | $1,000 | $1,019.75 | $5.24 | 1.04% |
A Class | $1,000 | $1,017.50 | $7.49 | 1.49% |
C Class | $1,000 | $1,013.76 | $11.25 | 2.24% |
R Class | $1,000 | $1,016.26 | $8.75 | 1.74% |
R6 Class | $1,000 | $1,020.49 | $4.48 | 0.89% |
G Class | $1,000 | $1,024.88(4) | $0.05(4) | 0.01% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 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) | Ending account value based on actual return from April 1, 2019 (commencement of sale) through May 31, 2019. |
(3) | 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 61, the number of days in the period from April 1, 2019 (commencement of sale) through May 31, 2019, divided by 365, to reflect the period. Had the class been available for the full period, the expenses paid during the period would have been higher. |
(4) | Ending account value and expenses paid during the period assumes the class had been available throughout the entire period and are calculated using the class’s annualized expense ratio listed in the table above. |
5
Schedule of Investments |
MAY 31, 2019 (UNAUDITED)
Shares | Value | |||
COMMON STOCKS — 99.5% | ||||
Australia — 5.0% | ||||
CSL Ltd. | 2,570 | $ | 365,548 | |
Treasury Wine Estates Ltd. | 13,900 | 143,881 | ||
509,429 | ||||
Austria — 2.1% | ||||
Erste Group Bank AG(1) | 6,074 | 215,289 | ||
Belgium — 1.6% | ||||
KBC Group NV | 2,490 | 163,548 | ||
Brazil — 4.0% | ||||
Localiza Rent a Car SA | 18,968 | 184,172 | ||
Magazine Luiza SA | 4,500 | 223,867 | ||
408,039 | ||||
Canada — 1.4% | ||||
Canada Goose Holdings, Inc.(1) | 4,240 | 142,676 | ||
China — 7.3% | ||||
Alibaba Group Holding Ltd. ADR(1) | 1,880 | 280,609 | ||
ANTA Sports Products Ltd. | 31,000 | 189,082 | ||
Tencent Holdings Ltd. | 6,500 | 269,561 | ||
739,252 | ||||
Finland — 2.4% | ||||
Neste Oyj | 7,260 | 244,704 | ||
France — 7.5% | ||||
Airbus SE | 2,050 | 263,425 | ||
Dassault Systemes SE | 1,640 | 243,051 | ||
Kering SA | 490 | 254,528 | ||
761,004 | ||||
Germany — 3.3% | ||||
Symrise AG | 3,560 | 333,673 | ||
Hong Kong — 4.2% | ||||
AIA Group Ltd. | 45,200 | 423,451 | ||
India — 2.5% | ||||
HDFC Bank Ltd. ADR | 2,040 | 253,287 | ||
Indonesia — 2.2% | ||||
Bank Central Asia Tbk PT | 109,900 | 223,926 | ||
Japan — 15.6% | ||||
Hoya Corp. | 2,200 | 152,256 | ||
Keyence Corp. | 400 | 224,371 | ||
MonotaRO Co. Ltd. | 8,100 | 171,669 | ||
Pan Pacific International Holdings Corp. | 3,200 | 197,074 | ||
Recruit Holdings Co. Ltd. | 11,100 | 354,146 | ||
Shiseido Co. Ltd. | 3,800 | 272,582 | ||
6
Shares | Value | |||
Terumo Corp. | 7,400 | $ | 209,187 | |
1,581,285 | ||||
Netherlands — 7.7% | ||||
Adyen NV(1) | 279 | 224,344 | ||
InterXion Holding NV(1) | 3,500 | 257,985 | ||
Koninklijke DSM NV | 2,690 | 302,311 | ||
784,640 | ||||
Russia — 1.9% | ||||
Yandex NV, A Shares(1) | 5,200 | 186,784 | ||
Spain — 2.4% | ||||
Cellnex Telecom SA(1) | 7,010 | 246,203 | ||
Sweden — 5.8% | ||||
Hexagon AB, B Shares | 2,942 | 136,580 | ||
Lundin Petroleum AB | 8,170 | 221,696 | ||
Telefonaktiebolaget LM Ericsson, B Shares | 23,410 | 225,946 | ||
584,222 | ||||
Switzerland — 9.1% | ||||
Alcon, Inc.(1) | 1,540 | 89,562 | ||
Lonza Group AG(1) | 1,000 | 307,160 | ||
Novartis AG | 3,750 | 322,061 | ||
Sika AG | 1,405 | 208,551 | ||
927,334 | ||||
Taiwan — 1.6% | ||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 22,000 | 162,952 | ||
United Kingdom — 11.9% | ||||
AstraZeneca plc | 4,120 | 304,024 | ||
B&M European Value Retail SA | 50,926 | 227,347 | ||
Diageo plc | 7,950 | 334,190 | ||
London Stock Exchange Group plc | 5,110 | 340,463 | ||
1,206,024 | ||||
TOTAL COMMON STOCKS (Cost $8,340,204) | 10,097,722 | |||
TEMPORARY CASH INVESTMENTS — 0.3% | ||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.00%, 4/30/20 - 2/15/48, valued at $28,256), in a joint trading account at 2.30%, dated 5/31/19, due 6/3/19 (Delivery value $27,707) | 27,702 | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 2,951 | 2,951 | ||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $30,653) | 30,653 | |||
TOTAL INVESTMENT SECURITIES — 99.8% (Cost $8,370,857) | 10,128,375 | |||
OTHER ASSETS AND LIABILITIES — 0.2% | 22,617 | |||
TOTAL NET ASSETS — 100.0% | $ | 10,150,992 | ||
7
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Health Care | 17.3 | % |
Financials | 16.0 | % |
Consumer Discretionary | 14.9 | % |
Information Technology | 14.5 | % |
Industrials | 9.6 | % |
Materials | 8.3 | % |
Consumer Staples | 7.4 | % |
Communication Services | 6.9 | % |
Energy | 4.6 | % |
Cash and Equivalents* | 0.5 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
(1) | Non-income producing. |
See Notes to Financial Statements.
8
Statement of Assets and Liabilities |
MAY 31, 2019 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $8,370,857) | $ | 10,128,375 | |
Foreign currency holdings, at value (cost of $1,837) | 1,842 | ||
Receivable for investments sold | 42,909 | ||
Receivable for capital shares sold | 45,928 | ||
Dividends and interest receivable | 21,604 | ||
10,240,658 | |||
Liabilities | |||
Payable for investments purchased | 75,751 | ||
Payable for capital shares redeemed | 1,703 | ||
Accrued management fees | 10,654 | ||
Distribution and service fees payable | 1,558 | ||
89,666 | |||
Net Assets | $ | 10,150,992 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 8,827,887 | |
Distributable earnings | 1,323,105 | ||
$ | 10,150,992 | ||
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $6,059,112 | 481,760 | $12.58 | |||
I Class, $0.01 Par Value | $823,289 | 65,311 | $12.61 | |||
A Class, $0.01 Par Value | $1,289,415 | 102,830 | $12.54* | |||
C Class, $0.01 Par Value | $1,234,660 | 100,015 | $12.34 | |||
R Class, $0.01 Par Value | $466,779 | 37,337 | $12.50 | |||
R6 Class, $0.01 Par Value | $272,853 | 21,607 | $12.63 | |||
G Class, $0.01 Par Value | $4,884 | 386 | $12.65 | |||
*Maximum offering price $13.31 (net asset value divided by 0.9425).
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $9,137) | $ | 93,250 | |
Interest | 1,289 | ||
94,539 | |||
Expenses: | |||
Management fees | 60,354 | ||
Distribution and service fees: | |||
A Class | 1,573 | ||
C Class | 6,036 | ||
R Class | 1,088 | ||
Directors' fees and expenses | 137 | ||
Other expenses | 454 | ||
69,642 | |||
Fees waived - G Class | (7 | ) | |
69,635 | |||
Net investment income (loss) | 24,904 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | (261,312 | ) | |
Foreign currency translation transactions | (740 | ) | |
(262,052 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | 800,635 | ||
Translation of assets and liabilities in foreign currencies | (34 | ) | |
800,601 | |||
Net realized and unrealized gain (loss) | 538,549 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 563,453 | |
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2018 | ||||||
Increase (Decrease) in Net Assets | May 31, 2019 | November 30, 2018 | ||||
Operations | ||||||
Net investment income (loss) | $ | 24,904 | $ | 53,738 | ||
Net realized gain (loss) | (262,052 | ) | (74,846 | ) | ||
Change in net unrealized appreciation (depreciation) | 800,601 | (885,209 | ) | |||
Net increase (decrease) in net assets resulting from operations | 563,453 | (906,317 | ) | |||
Distributions to Shareholders | ||||||
From earnings: | ||||||
Investor Class | (31,989 | ) | — | |||
I Class | (5,626 | ) | — | |||
A Class | (3,404 | ) | — | |||
R Class | (167 | ) | — | |||
R6 Class | (2,051 | ) | — | |||
Decrease in net assets from distributions | (43,237 | ) | — | |||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (360,805 | ) | 1,116,468 | |||
Net increase (decrease) in net assets | 159,411 | 210,151 | ||||
Net Assets | ||||||
Beginning of period | 9,991,581 | 9,781,430 | ||||
End of period | $ | 10,150,992 | $ | 9,991,581 | ||
See Notes to Financial Statements.
11
Notes to Financial Statements |
MAY 31, 2019 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Focused International Growth Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek capital growth.
The fund offers the Investor Class, I Class, A Class, C Class, R Class, R6 Class and G Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge. Sale of the G Class commenced on April 1, 2019.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value 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.
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
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fund may apply a model-derived factor to the closing price of equity securities traded on foreign securities exchanges. The factor is based on observable market data as provided by an independent pricing service.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
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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. ACIM owns 62% 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. Effective April 1, 2019, the investment advisor agreed to waive the G Class’s management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors.
The annual management fee for each class is as follows:
Investor Class | I Class | A Class | C Class | R Class | R6 Class | G Class |
1.23% | 1.03% | 1.23% | 1.23% | 1.23% | 0.88% | 0.00%(1) |
(1) | Annual management fee before waiver was 0.88%. |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 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.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2019 were $2,971,811 and $3,270,446, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2019(1) | Year ended November 30, 2018 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 50,000,000 | 50,000,000 | ||||||||
Sold | 49,526 | $ | 614,648 | 528,514 | $ | 7,140,621 | ||||
Issued in reinvestment of distributions | 2,828 | 31,989 | — | — | ||||||
Redeemed | (89,028 | ) | (1,071,498 | ) | (469,257 | ) | (6,238,274 | ) | ||
(36,674 | ) | (424,861 | ) | 59,257 | 902,347 | |||||
I Class/Shares Authorized | 30,000,000 | 35,000,000 | ||||||||
Sold | 1,823 | 21,345 | 4,325 | 50,773 | ||||||
Issued in reinvestment of distributions | 497 | 5,626 | — | — | ||||||
Redeemed | (1,919 | ) | (24,496 | ) | — | — | ||||
401 | 2,475 | 4,325 | 50,773 | |||||||
A Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | — | — | 1,672 | 22,494 | ||||||
Issued in reinvestment of distributions | 301 | 3,404 | — | — | ||||||
Redeemed | (1 | ) | (11 | ) | (358 | ) | (5,089 | ) | ||
300 | 3,393 | 1,314 | 17,405 | |||||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | — | — | 3 | 35 | ||||||
R Class/Shares Authorized | 20,000,000 | 30,000,000 | ||||||||
Sold | 4,128 | 50,546 | 14,078 | 184,615 | ||||||
Issued in reinvestment of distributions | 15 | 167 | — | — | ||||||
Redeemed | (1,169 | ) | (13,511 | ) | (3,020 | ) | (38,707 | ) | ||
2,974 | 37,202 | 11,058 | 145,908 | |||||||
R6 Class/Shares Authorized | 20,000,000 | 30,000,000 | ||||||||
Sold | 1,513 | 17,769 | — | — | ||||||
Issued in reinvestment of distributions | 181 | 2,051 | — | — | ||||||
Redeemed | (312 | ) | (3,834 | ) | — | — | ||||
1,382 | 15,986 | — | — | |||||||
G Class/Shares Authorized | 40,000,000 | N/A | ||||||||
Sold | 386 | 5,000 | ||||||||
Net increase (decrease) | (31,231 | ) | $ | (360,805 | ) | 75,957 | $ | 1,116,468 | ||
(1) | April 1, 2019 (commencement of sale) through May 31, 2019 for the G Class. |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
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• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | ||||||||
Canada | $ | 142,676 | — | — | ||||
China | 280,609 | $ | 458,643 | — | ||||
India | 253,287 | — | — | |||||
Netherlands | 257,985 | 526,655 | — | |||||
Russia | 186,784 | — | — | |||||
Other Countries | — | 7,991,083 | — | |||||
Temporary Cash Investments | 2,951 | 27,702 | — | |||||
$ | 1,124,292 | $ | 9,004,083 | — | ||||
7. 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 in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 8,389,122 | |
Gross tax appreciation of investments | $ | 1,913,418 | |
Gross tax depreciation of investments | (174,165 | ) | |
Net tax appreciation (depreciation) of investments | $ | 1,739,253 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2018, the fund had accumulated short-term capital losses of $(178,145), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2019(3) | $11.92 | 0.04 | 0.68 | 0.72 | (0.06) | $12.58 | 6.11% | 1.24%(4) | 0.65%(4) | 30% | $6,059 | ||
2018 | $12.81 | 0.08 | (0.97) | (0.89) | — | $11.92 | (6.95)% | 1.23% | 0.59% | 82% | $6,180 | ||
2017 | $9.75 | 0.01 | 3.13 | 3.14 | (0.08) | $12.81 | 32.40% | 1.24% | 0.14% | 76% | $5,882 | ||
2016(5) | $10.00 | 0.04 | (0.29) | (0.25) | — | $9.75 | (2.50)% | 1.23%(4) | 0.56%(4) | 47% | $2,074 | ||
I Class | |||||||||||||
2019(3) | $11.96 | 0.05 | 0.68 | 0.73 | (0.08) | $12.61 | 6.14% | 1.04%(4) | 0.85%(4) | 30% | $823 | ||
2018 | $12.83 | 0.09 | (0.96) | (0.87) | — | $11.96 | (6.78)% | 1.03% | 0.79% | 82% | $776 | ||
2017 | $9.76 | 0.05 | 3.11 | 3.16 | (0.09) | $12.83 | 32.74% | 1.04% | 0.34% | 76% | $777 | ||
2016(5) | $10.00 | 0.05 | (0.29) | (0.24) | — | $9.76 | (2.40)% | 1.03%(4) | 0.76%(4) | 47% | $586 | ||
A Class | |||||||||||||
2019(3) | $11.87 | 0.03 | 0.67 | 0.70 | (0.03) | $12.54 | 5.96% | 1.49%(4) | 0.40%(4) | 30% | $1,289 | ||
2018 | $12.79 | 0.03 | (0.95) | (0.92) | — | $11.87 | (7.19)% | 1.48% | 0.34% | 82% | $1,217 | ||
2017 | $9.73 | (0.01) | 3.12 | 3.11 | (0.05) | $12.79 | 32.13% | 1.49% | (0.11)% | 76% | $1,295 | ||
2016(5) | $10.00 | 0.02 | (0.29) | (0.27) | — | $9.73 | (2.70)% | 1.48%(4) | 0.31%(4) | 47% | $978 | ||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
C Class | |||||||||||||
2019(3) | $11.70 | (0.02) | 0.66 | 0.64 | — | $12.34 | 5.56% | 2.24%(4) | (0.35)%(4) | 30% | $1,235 | ||
2018 | $12.70 | (0.07) | (0.93) | (1.00) | — | $11.70 | (7.95)% | 2.23% | (0.41)% | 82% | $1,170 | ||
2017 | $9.68 | (0.09) | 3.11 | 3.02 | — | $12.70 | 31.20% | 2.24% | (0.86)% | 76% | $1,270 | ||
2016(5) | $10.00 | (0.03) | (0.29) | (0.32) | — | $9.68 | (3.20)% | 2.23%(4) | (0.44)%(4) | 47% | $968 | ||
R Class | |||||||||||||
2019(3) | $11.82 | 0.01 | 0.67 | 0.68 | —(6) | $12.50 | 5.80% | 1.74%(4) | 0.15%(4) | 30% | $467 | ||
2018 | $12.77 | —(6) | (0.95) | (0.95) | — | $11.82 | (7.44)% | 1.73% | 0.09% | 82% | $406 | ||
2017 | $9.72 | (0.04) | 3.12 | 3.08 | (0.03) | $12.77 | 31.73% | 1.74% | (0.36)% | 76% | $298 | ||
2016(5) | $10.00 | —(6) | (0.28) | (0.28) | — | $9.72 | (2.80)% | 1.73%(4) | 0.06%(4) | 47% | $196 | ||
R6 Class | |||||||||||||
2019(3) | $11.99 | 0.06 | 0.68 | 0.74 | (0.10) | $12.63 | 6.28% | 0.89%(4) | 1.00%(4) | 30% | $273 | ||
2018 | $12.84 | 0.11 | (0.96) | (0.85) | — | $11.99 | (6.62)% | 0.88% | 0.94% | 82% | $242 | ||
2017 | $9.77 | 0.06 | 3.12 | 3.18 | (0.11) | $12.84 | 32.90% | 0.89% | 0.49% | 76% | $260 | ||
2016(5) | $10.00 | 0.06 | (0.29) | (0.23) | — | $9.77 | (2.30)% | 0.88%(4) | 0.91%(4) | 47% | $195 | ||
G Class | |||||||||||||
2019(7) | $12.94 | 0.07 | (0.36) | (0.29) | — | $12.65 | (2.24)% | 0.01%(4)(8) | 3.18%(4)(8) | 30%(9) | $5 | ||
Notes to Financial Highlights | |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2019 (unaudited). |
(4) | Annualized. |
(5) | March 29, 2016 (fund inception) through November 30, 2016. |
(6) | Per-share amount was less than $0.005. |
(7) | April 1, 2019 (commencement of sale) through May 31, 2019 (unaudited). |
(8) | The annualized ratio of operating expenses to average net assets before expense waiver and the annualized ratio of net investment income (loss) to average net assets before expense waiver was 0.89% and 2.30%, respectively. |
(9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the six months ended May 31, 2019. |
See Notes to Financial Statements.
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.
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Notes |
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Notes |
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Notes |
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Notes |
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| ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2019 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92637 1907 | ||
Semiannual Report | |
May 31, 2019 | |
Global Growth Fund | |
Investor Class (TWGGX) | |
I Class (AGGIX) | |
Y Class (AGYGX) | |
A Class (AGGRX) | |
C Class (AGLCX) | |
R Class (AGORX) | |
R5 Class (AGFGX) | |
R6 Class (AGGDX) | |
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 |
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 |
Jonathan ThomasDear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2019. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, please visit our website, americancentury.com.
Trade Tensions Tempered Stock Gains
Sharp sell-offs opened and closed the six-month reporting period, with a rally in the middle. Mounting investors’ concerns about slowing global economic and earnings growth, U.S.-China trade tensions, falling oil prices and rising U.S. interest rates triggered the December 2018 sell-off. Despite signs that global growth was slowing, the Federal Reserve (Fed) raised interest rates in December, its fourth rate hike of the year. Investors feared this rate increase combined with the Fed’s bullish 2019 rate-hike outlook were too aggressive, further fueling the sell-off.
The new year brought a renewed sense of stability to the global financial markets and a new round of risk-on investing. Investors’ worst-case fears about growth and trade eased, and corporate earnings results were generally better than expected. Central banks in Europe and Japan continued to pursue dovish policies, and the Fed ended its rate-hike strategy amid moderating global growth and inflation. Additionally, equity valuations appeared attractive following the late-2018 stock market sell-off.
Investor sentiment took another U-turn in May. Heightened U.S.-China trade tensions and a new round of tariffs threatened global growth. Global oil prices plunged, contributing to the unrest. Then, late in the month, U.K. Prime Minister Theresa May’s resignation reignited fears of a no-deal Brexit. Against this backdrop, investors fled global stocks in favor of perceived safe-haven assets.
Despite the steep sell-offs in December and May, global stocks held onto modest gains for the entire six-month period. Non-U.S. stocks generally outperformed U.S. stocks. Among non-U.S. stocks, developed markets broadly outperformed emerging markets.
Looking ahead, we expect volatility to remain a formidable factor as investors react to global growth data, trade conflicts, 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,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2019 | |
Top Ten Holdings | % of net assets |
Alphabet, Inc., Class A | 2.7% |
Amazon.com, Inc. | 2.7% |
Visa, Inc., Class A | 2.5% |
Equinix, Inc. | 2.1% |
Adobe, Inc. | 1.9% |
American Express Co. | 1.9% |
Danaher Corp. | 1.7% |
IHS Markit Ltd. | 1.7% |
American Tower Corp. | 1.7% |
Home Depot, Inc. (The) | 1.5% |
Types of Investments in Portfolio | % of net assets |
Domestic Common Stocks | 66.7% |
Foreign Common Stocks | 31.9% |
Total Common Stocks | 98.6% |
Temporary Cash Investments | 1.3% |
Other Assets and Liabilities | 0.1% |
Investments by Country | % of net assets |
United States | 66.7% |
Japan | 5.2% |
United Kingdom | 4.5% |
China | 3.1% |
Hong Kong | 3.0% |
Netherlands | 3.0% |
France | 2.4% |
Other Countries | 10.7% |
Cash and Equivalents* | 1.4% |
*Includes temporary cash investments and other assets and liabilities.
3
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 December 1, 2018 to May 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.
4
Beginning Account Value 12/1/18 | Ending Account Value 5/31/19 | Expenses Paid During Period(1) 12/1/18 - 5/31/19 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,083.30 | $5.61 | 1.08% |
I Class | $1,000 | $1,084.60 | $4.57 | 0.88% |
Y Class | $1,000 | $1,085.00 | $3.79 | 0.73% |
A Class | $1,000 | $1,082.00 | $6.90 | 1.33% |
C Class | $1,000 | $1,078.20 | $10.78 | 2.08% |
R Class | $1,000 | $1,080.70 | $8.20 | 1.58% |
R5 Class | $1,000 | $1,083.80 | $4.57 | 0.88% |
R6 Class | $1,000 | $1,085.90 | $3.80 | 0.73% |
Hypothetical | ||||
Investor Class | $1,000 | $1,019.55 | $5.44 | 1.08% |
I Class | $1,000 | $1,020.54 | $4.43 | 0.88% |
Y Class | $1,000 | $1,021.29 | $3.68 | 0.73% |
A Class | $1,000 | $1,018.30 | $6.69 | 1.33% |
C Class | $1,000 | $1,014.56 | $10.45 | 2.08% |
R Class | $1,000 | $1,017.05 | $7.95 | 1.58% |
R5 Class | $1,000 | $1,020.54 | $4.43 | 0.88% |
R6 Class | $1,000 | $1,021.29 | $3.68 | 0.73% |
(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. |
5
Schedule of Investments |
MAY 31, 2019 (UNAUDITED)
Shares | Value | |||
COMMON STOCKS — 98.6% | ||||
Austria — 0.8% | ||||
Erste Group Bank AG(1) | 115,270 | $ | 4,085,676 | |
Brazil — 1.1% | ||||
B3 SA - Brasil Bolsa Balcao | 621,400 | 5,784,921 | ||
Canada — 1.0% | ||||
Alimentation Couche-Tard, Inc., B Shares | 32,970 | 2,023,425 | ||
Canada Goose Holdings, Inc.(1) | 71,950 | 2,421,117 | ||
First Quantum Minerals Ltd. | 84,873 | 617,898 | ||
5,062,440 | ||||
China — 3.1% | ||||
Alibaba Group Holding Ltd. ADR(1) | 44,580 | 6,654,011 | ||
GDS Holdings Ltd. ADR(1) | 86,266 | 2,802,782 | ||
Tencent Holdings Ltd. | 35,600 | 1,476,367 | ||
YY, Inc. ADR(1) | 33,370 | 2,284,177 | ||
ZTO Express Cayman, Inc. ADR | 172,170 | 3,105,947 | ||
16,323,284 | ||||
France — 2.4% | ||||
Kering SA | 10,970 | 5,698,311 | ||
TOTAL SA | 139,862 | 7,234,694 | ||
12,933,005 | ||||
Hong Kong — 3.0% | ||||
AIA Group Ltd. | 814,600 | 7,631,487 | ||
Hang Seng Bank Ltd. | 126,500 | 3,166,824 | ||
Hong Kong Exchanges & Clearing Ltd. | 170,200 | 5,398,029 | ||
16,196,340 | ||||
Hungary — 1.0% | ||||
OTP Bank Nyrt | 130,763 | 5,456,026 | ||
India — 1.3% | ||||
HDFC Bank Ltd. | 202,420 | 7,051,584 | ||
Indonesia — 0.5% | ||||
Bank Central Asia Tbk PT | 1,425,100 | 2,903,699 | ||
Ireland — 1.3% | ||||
CRH plc | 218,985 | 6,850,844 | ||
Italy — 0.4% | ||||
UniCredit SpA | 173,588 | 1,969,618 | ||
Japan — 5.2% | ||||
Keyence Corp. | 6,400 | 3,589,944 | ||
ORIX Corp. | 405,700 | 5,712,998 | ||
Pan Pacific International Holdings Corp. | 68,400 | 4,212,452 | ||
Shiseido Co. Ltd. | 65,500 | 4,698,463 | ||
Sysmex Corp. | 85,600 | 5,918,818 | ||
6
Shares | Value | |||
Unicharm Corp. | 111,800 | $ | 3,335,716 | |
27,468,391 | ||||
Mexico — 0.7% | ||||
Grupo Financiero Banorte SAB de CV | 488,620 | 2,662,650 | ||
Grupo Mexico SAB de CV, Series B | 463,480 | 1,154,044 | ||
3,816,694 | ||||
Netherlands — 3.0% | ||||
ASML Holding NV | 17,300 | 3,259,909 | ||
InterXion Holding NV(1) | 43,890 | 3,235,132 | ||
Koninklijke DSM NV | 48,850 | 5,489,917 | ||
Unilever NV CVA | 69,030 | 4,160,205 | ||
16,145,163 | ||||
Peru — 0.8% | ||||
Credicorp Ltd. | 18,760 | 4,198,488 | ||
Sweden — 0.5% | ||||
Epiroc AB, A Shares | 262,130 | 2,439,834 | ||
Switzerland — 1.3% | ||||
Lonza Group AG(1) | 22,510 | 6,914,163 | ||
United Kingdom — 4.5% | ||||
Ashtead Group plc | 81,910 | 1,923,141 | ||
AstraZeneca plc | 85,240 | 6,290,054 | ||
B&M European Value Retail SA | 642,550 | 2,868,511 | ||
Diageo plc | 113,630 | 4,776,601 | ||
London Stock Exchange Group plc | 84,980 | 5,661,939 | ||
Prudential plc | 118,550 | 2,362,287 | ||
23,882,533 | ||||
United States — 66.7% | ||||
Abbott Laboratories | 78,410 | 5,969,353 | ||
Adobe, Inc.(1) | 36,997 | 10,022,487 | ||
Advanced Micro Devices, Inc.(1) | 80,620 | 2,209,794 | ||
Agilent Technologies, Inc. | 53,700 | 3,600,585 | ||
Air Products & Chemicals, Inc. | 12,960 | 2,638,526 | ||
Alphabet, Inc., Class A(1) | 12,955 | 14,334,708 | ||
Amazon.com, Inc.(1) | 7,968 | 14,143,758 | ||
American Express Co. | 86,480 | 9,920,121 | ||
American Tower Corp. | 43,850 | 9,154,565 | ||
AMETEK, Inc. | 82,450 | 6,751,831 | ||
Becton Dickinson and Co. | 28,920 | 6,751,085 | ||
Bio-Rad Laboratories, Inc., Class A(1) | 20,754 | 5,954,945 | ||
Booz Allen Hamilton Holding Corp. | 46,740 | 2,952,566 | ||
Boston Scientific Corp.(1) | 70,170 | 2,695,230 | ||
Brink's Co. (The) | 28,170 | 2,169,090 | ||
Burlington Stores, Inc.(1) | 35,710 | 5,591,472 | ||
Catalent, Inc.(1) | 61,730 | 2,808,715 | ||
Cheniere Energy, Inc.(1) | 91,760 | 5,797,397 | ||
Cintas Corp. | 30,610 | 6,790,216 | ||
CoStar Group, Inc.(1) | 11,580 | 5,901,631 | ||
7
Shares | Value | |||
Danaher Corp. | 70,040 | $ | 9,245,980 | |
Elanco Animal Health, Inc.(1) | 124,223 | 3,885,696 | ||
EOG Resources, Inc. | 58,360 | 4,778,517 | ||
Equinix, Inc. | 22,996 | 11,171,227 | ||
Floor & Decor Holdings, Inc., Class A(1) | 11,672 | 414,590 | ||
Harris Corp. | 31,740 | 5,941,411 | ||
Home Depot, Inc. (The) | 42,024 | 7,978,256 | ||
Honeywell International, Inc. | 40,677 | 6,683,638 | ||
IDEXX Laboratories, Inc.(1) | 23,260 | 5,809,650 | ||
IHS Markit Ltd.(1) | 160,780 | 9,227,164 | ||
Illumina, Inc.(1) | 11,120 | 3,412,839 | ||
Intercontinental Exchange, Inc. | 93,031 | 7,648,079 | ||
Keysight Technologies, Inc.(1) | 46,163 | 3,468,226 | ||
Liberty Media Corp-Liberty Formula One, Class C(1) | 113,787 | 4,247,669 | ||
Lululemon Athletica, Inc.(1) | 18,240 | 3,020,362 | ||
Lyft, Inc., Class A(1) | 20,215 | 1,164,788 | ||
MarketAxess Holdings, Inc. | 14,793 | 4,405,651 | ||
Mastercard, Inc., Class A | 30,280 | 7,615,117 | ||
Medidata Solutions, Inc.(1) | 57,490 | 5,240,214 | ||
MongoDB, Inc.(1) | 3,380 | 474,349 | ||
Monster Beverage Corp.(1) | 118,620 | 7,337,833 | ||
MSCI, Inc. | 15,930 | 3,504,759 | ||
Nordson Corp. | 19,610 | 2,463,408 | ||
PayPal Holdings, Inc.(1) | 58,070 | 6,373,183 | ||
Pioneer Natural Resources Co. | 47,868 | 6,795,341 | ||
RealPage, Inc.(1) | 69,120 | 4,031,078 | ||
Roku, Inc.(1) | 37,940 | 3,429,776 | ||
Roper Technologies, Inc. | 19,560 | 6,727,075 | ||
Service Corp. International/US | 79,480 | 3,486,788 | ||
ServiceNow, Inc.(1) | 23,070 | 6,042,725 | ||
Sherwin-Williams Co. (The) | 13,040 | 5,469,628 | ||
Stanley Black & Decker, Inc. | 31,370 | 3,990,891 | ||
Sysco Corp. | 73,010 | 5,024,548 | ||
Teleflex, Inc. | 24,308 | 7,007,996 | ||
Texas Instruments, Inc. | 28,840 | 3,008,300 | ||
Union Pacific Corp. | 28,480 | 4,749,894 | ||
VeriSign, Inc.(1) | 22,420 | 4,371,452 | ||
Visa, Inc., Class A | 83,172 | 13,418,139 | ||
Webster Financial Corp. | 95,890 | 4,246,009 | ||
Worldpay, Inc., Class A(1) | 65,508 | 7,968,393 | ||
Zebra Technologies Corp., Class A(1) | 15,530 | 2,662,463 | ||
Zions Bancorp N.A. | 69,679 | 3,001,075 | ||
Zoetis, Inc. | 76,188 | 7,698,797 | ||
354,801,049 | ||||
TOTAL COMMON STOCKS (Cost $370,387,268) | 524,283,752 | |||
8
Shares | Value | |||
TEMPORARY CASH INVESTMENTS — 1.3% | ||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.00%, 4/30/20 - 2/15/48, valued at $6,523,458), in a joint trading account at 2.30%, dated 5/31/19, due 6/3/19 (Delivery value $6,396,927) | $ | 6,395,701 | ||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.25%, 11/15/27, valued at $693,763), at 1.25%, dated 5/31/19, due 6/3/19 (Delivery value $677,071) | 677,001 | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 4,342 | 4,342 | ||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $7,077,044) | 7,077,044 | |||
TOTAL INVESTMENT SECURITIES — 99.9% (Cost $377,464,312) | 531,360,796 | |||
OTHER ASSETS AND LIABILITIES — 0.1% | 742,932 | |||
TOTAL NET ASSETS — 100.0% | $ | 532,103,728 | ||
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Financials | 18.2 | % |
Health Care | 16.6 | % |
Information Technology | 16.5 | % |
Industrials | 13.3 | % |
Consumer Discretionary | 11.4 | % |
Consumer Staples | 5.9 | % |
Energy | 4.6 | % |
Communication Services | 4.2 | % |
Materials | 4.1 | % |
Real Estate | 3.8 | % |
Cash and Equivalents* | 1.4 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
CVA | - | Certificaten Van Aandelen |
(1) | Non-income producing. |
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2019 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $377,464,312) | $ | 531,360,796 | |
Foreign currency holdings, at value (cost of $11,292) | 11,303 | ||
Receivable for investments sold | 235,196 | ||
Receivable for capital shares sold | 1,321,480 | ||
Dividends and interest receivable | 848,423 | ||
Other assets | 1,256 | ||
533,778,454 | |||
Liabilities | |||
Payable for capital shares redeemed | 1,146,084 | ||
Accrued management fees | 473,559 | ||
Distribution and service fees payable | 13,006 | ||
Accrued foreign taxes | 42,077 | ||
1,674,726 | |||
Net Assets | $ | 532,103,728 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 362,809,837 | |
Distributable earnings | 169,293,891 | ||
$ | 532,103,728 | ||
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $412,782,103 | 34,278,195 | $12.04 | |||
I Class, $0.01 Par Value | $22,536,826 | 1,832,861 | $12.30 | |||
Y Class, $0.01 Par Value | $22,080 | 1,785 | $12.37 | |||
A Class, $0.01 Par Value | $25,724,853 | 2,208,354 | $11.65* | |||
C Class, $0.01 Par Value | $4,727,245 | 480,564 | $9.84 | |||
R Class, $0.01 Par Value | $7,130,797 | 624,756 | $11.41 | |||
R5 Class, $0.01 Par Value | $6,431 | 523 | $12.30 | |||
R6 Class, $0.01 Par Value | $59,173,393 | 4,788,894 | $12.36 | |||
*Maximum offering price $12.36 (net asset value divided by 0.9425).
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $132,636) | $ | 3,355,929 | |
Interest | 51,817 | ||
3,407,746 | |||
Expenses: | |||
Management fees | 2,647,968 | ||
Distribution and service fees: | |||
A Class | 31,832 | ||
C Class | 23,937 | ||
R Class | 17,822 | ||
Directors' fees and expenses | 7,077 | ||
Other expenses | 14,047 | ||
2,742,683 | |||
Net investment income (loss) | 665,063 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 20,370,356 | ||
Foreign currency translation transactions | (27,967 | ) | |
20,342,389 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $(10,274)) | 20,864,073 | ||
Translation of assets and liabilities in foreign currencies | 5,447 | ||
20,869,520 | |||
Net realized and unrealized gain (loss) | 41,211,909 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 41,876,972 | |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2018 | ||||||
Increase (Decrease) in Net Assets | May 31, 2019 | November 30, 2018 | ||||
Operations | ||||||
Net investment income (loss) | $ | 665,063 | $ | 1,616,796 | ||
Net realized gain (loss) | 20,342,389 | 49,211,928 | ||||
Change in net unrealized appreciation (depreciation) | 20,869,520 | (42,444,324 | ) | |||
Net increase (decrease) in net assets resulting from operations | 41,876,972 | 8,384,400 | ||||
Distributions to Shareholders | ||||||
From earnings: | ||||||
Investor Class | (36,935,706 | ) | (48,031,985 | ) | ||
I Class | (1,467,077 | ) | (3,592,399 | ) | ||
Y Class | (546 | ) | (642 | ) | ||
A Class | (2,409,311 | ) | (3,350,308 | ) | ||
C Class | (500,817 | ) | (752,010 | ) | ||
R Class | (660,873 | ) | (892,252 | ) | ||
R5 Class | (540 | ) | (639 | ) | ||
R6 Class | (4,427,325 | ) | (4,170,767 | ) | ||
Decrease in net assets from distributions | (46,402,195 | ) | (60,791,002 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 25,784,741 | 11,146,331 | ||||
Net increase (decrease) in net assets | 21,259,518 | (41,260,271 | ) | |||
Net Assets | ||||||
Beginning of period | 510,844,210 | 552,104,481 | ||||
End of period | $ | 532,103,728 | $ | 510,844,210 | ||
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2019 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Global Growth Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek capital growth.
The fund offers the Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value 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.
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.
13
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. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
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Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
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 May 31, 2019 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |
Investor Class | 1.050% to 1.300% | 1.07% |
I Class | 0.850% to 1.100% | 0.87% |
Y Class | 0.700% to 0.950% | 0.72% |
A Class | 1.050% to 1.300% | 1.07% |
C Class | 1.050% to 1.300% | 1.07% |
R Class | 1.050% to 1.300% | 1.07% |
R5 Class | 0.850% to 1.100% | 0.87% |
R6 Class | 0.700% to 0.950% | 0.72% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2019 are detailed in the Statement of Operations.
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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 $880,782 and $288,426, respectively. The effect of interfund transactions on the Statement of Operations was $58,766 in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2019 were $83,671,071 and $107,211,977, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2019 | Year ended November 30, 2018 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 385,000,000 | 385,000,000 | ||||||||
Sold | 859,834 | $ | 9,970,210 | 2,390,301 | $ | 30,414,509 | ||||
Issued in reinvestment of distributions | 3,477,530 | 35,957,657 | 3,851,797 | 46,801,407 | ||||||
Redeemed | (3,220,200 | ) | (37,574,474 | ) | (5,110,511 | ) | (65,185,892 | ) | ||
1,117,164 | 8,353,393 | 1,131,587 | 12,030,024 | |||||||
I Class/Shares Authorized | 40,000,000 | 50,000,000 | ||||||||
Sold | 622,251 | 7,763,158 | 727,393 | 9,577,897 | ||||||
Issued in reinvestment of distributions | 138,538 | 1,461,572 | 269,213 | 3,338,740 | ||||||
Redeemed | (217,785 | ) | (2,517,269 | ) | (2,042,868 | ) | (26,578,900 | ) | ||
543,004 | 6,707,461 | (1,046,262 | ) | (13,662,263 | ) | |||||
Y Class/Shares Authorized | 20,000,000 | 25,000,000 | ||||||||
Sold | 1,265 | 15,885 | 88 | 1,174 | ||||||
Issued in reinvestment of distributions | 51 | 546 | 52 | 642 | ||||||
Redeemed | (89 | ) | (1,076 | ) | — | — | ||||
1,227 | 15,355 | 140 | 1,816 | |||||||
A Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||
Sold | 141,422 | 1,616,426 | 451,629 | 5,642,831 | ||||||
Issued in reinvestment of distributions | 233,037 | 2,332,697 | 273,488 | 3,221,690 | ||||||
Redeemed | (361,800 | ) | (3,999,623 | ) | (829,318 | ) | (10,201,574 | ) | ||
12,659 | (50,500 | ) | (104,201 | ) | (1,337,053 | ) | ||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 83,764 | 717,404 | 104,011 | 1,117,903 | ||||||
Issued in reinvestment of distributions | 52,006 | 441,007 | 62,611 | 641,132 | ||||||
Redeemed | (106,981 | ) | (998,363 | ) | (222,760 | ) | (2,402,989 | ) | ||
28,789 | 160,048 | (56,138 | ) | (643,954 | ) | |||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 46,549 | 506,622 | 83,143 | 1,011,937 | ||||||
Issued in reinvestment of distributions | 67,219 | 660,090 | 76,654 | 889,957 | ||||||
Redeemed | (84,114 | ) | (934,712 | ) | (167,806 | ) | (2,035,422 | ) | ||
29,654 | 232,000 | (8,009 | ) | (133,528 | ) | |||||
R5 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||
Issued in reinvestment of distributions | 51 | 540 | 52 | 639 | ||||||
R6 Class/Shares Authorized | 50,000,000 | 40,000,000 | ||||||||
Sold | 936,781 | 10,388,922 | 1,521,533 | 20,077,660 | ||||||
Issued in reinvestment of distributions | 418,067 | 4,427,325 | 334,272 | 4,170,767 | ||||||
Redeemed | (376,934 | ) | (4,449,803 | ) | (709,871 | ) | (9,357,777 | ) | ||
977,914 | 10,366,444 | 1,145,934 | 14,890,650 | |||||||
Net increase (decrease) | 2,710,462 | $ | 25,784,741 | 1,063,103 | $ | 11,146,331 | ||||
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6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | ||||||||
Austria | — | $ | 4,085,676 | — | ||||
Brazil | — | 5,784,921 | — | |||||
Canada | $ | 2,421,117 | 2,641,323 | — | ||||
China | 14,846,917 | 1,476,367 | — | |||||
France | — | 12,933,005 | — | |||||
Hong Kong | — | 16,196,340 | — | |||||
Hungary | — | 5,456,026 | — | |||||
India | — | 7,051,584 | — | |||||
Indonesia | — | 2,903,699 | — | |||||
Ireland | — | 6,850,844 | — | |||||
Italy | — | 1,969,618 | — | |||||
Japan | — | 27,468,391 | — | |||||
Mexico | — | 3,816,694 | — | |||||
Netherlands | 3,235,132 | 12,910,031 | — | |||||
Sweden | — | 2,439,834 | — | |||||
Switzerland | — | 6,914,163 | — | |||||
United Kingdom | — | 23,882,533 | — | |||||
Other Countries | 358,999,537 | — | — | |||||
Temporary Cash Investments | 4,342 | 7,072,702 | — | |||||
$ | 379,507,045 | $ | 151,853,751 | — | ||||
7. 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 in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
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8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 378,465,251 | |
Gross tax appreciation of investments | $ | 161,128,262 | |
Gross tax depreciation of investments | (8,232,717 | ) | |
Net tax appreciation (depreciation) of investments | $ | 152,895,545 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2018, the fund had post-October capital loss deferrals of $(1,201,618), which represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||||
2019(3) | $12.32 | 0.01 | 0.83 | 0.84 | (0.01) | (1.11) | (1.12) | $12.04 | 8.33% | 1.08%(4) | 0.24%(4) | 16% | $412,782 | ||
2018 | $13.67 | 0.04 | 0.11 | 0.15 | (0.03) | (1.47) | (1.50) | $12.32 | 1.27% | 1.07% | 0.29% | 42% | $408,562 | ||
2017 | $10.84 | 0.02 | 2.98 | 3.00 | (0.04) | (0.13) | (0.17) | $13.67 | 27.99% | 1.08% | 0.14% | 54% | $437,822 | ||
2016 | $12.01 | 0.03 | (0.42) | (0.39) | (0.01) | (0.77) | (0.78) | $10.84 | (3.24)% | 1.08% | 0.27% | 57% | $387,155 | ||
2015 | $12.94 | —(5) | 0.12 | 0.12 | — | (1.05) | (1.05) | $12.01 | 1.37% | 1.08% | 0.04% | 50% | $443,915 | ||
2014 | $12.39 | —(5) | 0.91 | 0.91 | (0.08) | (0.28) | (0.36) | $12.94 | 7.53% | 1.08% | 0.03% | 46% | $462,889 | ||
I Class | |||||||||||||||
2019(3) | $12.57 | 0.03 | 0.85 | 0.88 | (0.04) | (1.11) | (1.15) | $12.30 | 8.46% | 0.88%(4) | 0.44%(4) | 16% | $22,537 | ||
2018 | $13.91 | 0.06 | 0.12 | 0.18 | (0.05) | (1.47) | (1.52) | $12.57 | 1.52% | 0.87% | 0.49% | 42% | $16,210 | ||
2017 | $11.01 | 0.05 | 3.02 | 3.07 | (0.04) | (0.13) | (0.17) | $13.91 | 28.25% | 0.88% | 0.34% | 54% | $32,498 | ||
2016 | $12.19 | 0.05 | (0.42) | (0.37) | (0.04) | (0.77) | (0.81) | $11.01 | (3.07)% | 0.88% | 0.47% | 57% | $37,028 | ||
2015 | $13.09 | 0.03 | 0.12 | 0.15 | — | (1.05) | (1.05) | $12.19 | 1.60% | 0.88% | 0.24% | 50% | $33,211 | ||
2014 | $12.52 | 0.03 | 0.91 | 0.94 | (0.09) | (0.28) | (0.37) | $13.09 | 7.68% | 0.88% | 0.23% | 46% | $78,802 | ||
Y Class | |||||||||||||||
2019(3) | $12.65 | 0.03 | 0.85 | 0.88 | (0.05) | (1.11) | (1.16) | $12.37 | 8.50% | 0.73%(4) | 0.59%(4) | 16% | $22 | ||
2018 | $13.98 | 0.08 | 0.12 | 0.20 | (0.06) | (1.47) | (1.53) | $12.65 | 1.62% | 0.72% | 0.64% | 42% | $7 | ||
2017(6) | $11.95 | 0.04 | 1.99 | 2.03 | — | — | — | $13.98 | 16.99% | 0.73%(4) | 0.49%(4) | 54%(7) | $6 | ||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
A Class | |||||||||||||||
2019(3) | $11.96 | —(5) | 0.80 | 0.80 | — | (1.11) | (1.11) | $11.65 | 8.20% | 1.33%(4) | (0.01)%(4) | 16% | $25,725 | ||
2018 | $13.31 | —(5) | 0.12 | 0.12 | — | (1.47) | (1.47) | $11.96 | 1.08% | 1.32% | 0.04% | 42% | $26,256 | ||
2017 | $10.58 | (0.01) | 2.90 | 2.89 | (0.03) | (0.13) | (0.16) | $13.31 | 27.65% | 1.33% | (0.11)% | 54% | $30,622 | ||
2016 | $11.76 | —(5) | (0.41) | (0.41) | — | (0.77) | (0.77) | $10.58 | (3.52)% | 1.33% | 0.02% | 57% | $36,382 | ||
2015 | $12.72 | (0.02) | 0.11 | 0.09 | — | (1.05) | (1.05) | $11.76 | 1.14% | 1.33% | (0.21)% | 50% | $45,855 | ||
2014 | $12.21 | (0.03) | 0.89 | 0.86 | (0.07) | (0.28) | (0.35) | $12.72 | 7.23% | 1.33% | (0.22)% | 46% | $54,091 | ||
C Class | |||||||||||||||
2019(3) | $10.32 | (0.04) | 0.67 | 0.63 | — | (1.11) | (1.11) | $9.84 | 7.82% | 2.08%(4) | (0.76)%(4) | 16% | $4,727 | ||
2018 | $11.77 | (0.08) | 0.10 | 0.02 | — | (1.47) | (1.47) | $10.32 | 0.27% | 2.07% | (0.71)% | 42% | $4,662 | ||
2017 | $9.42 | (0.09) | 2.58 | 2.49 | (0.01) | (0.13) | (0.14) | $11.77 | 26.77% | 2.08% | (0.86)% | 54% | $5,977 | ||
2016 | $10.63 | (0.07) | (0.37) | (0.44) | — | (0.77) | (0.77) | $9.42 | (4.23)% | 2.08% | (0.73)% | 57% | $6,872 | ||
2015 | $11.68 | (0.10) | 0.10 | —(5) | — | (1.05) | (1.05) | $10.63 | 0.40% | 2.08% | (0.96)% | 50% | $8,520 | ||
2014 | $11.30 | (0.11) | 0.81 | 0.70 | (0.04) | (0.28) | (0.32) | $11.68 | 6.39% | 2.08% | (0.97)% | 46% | $7,234 | ||
R Class | |||||||||||||||
2019(3) | $11.75 | (0.01) | 0.78 | 0.77 | — | (1.11) | (1.11) | $11.41 | 8.07% | 1.58%(4) | (0.26)%(4) | 16% | $7,131 | ||
2018 | $13.14 | (0.03) | 0.11 | 0.08 | — | (1.47) | (1.47) | $11.75 | 0.75% | 1.57% | (0.21)% | 42% | $6,995 | ||
2017 | $10.47 | (0.04) | 2.86 | 2.82 | (0.02) | (0.13) | (0.15) | $13.14 | 27.29% | 1.58% | (0.36)% | 54% | $7,925 | ||
2016 | $11.67 | (0.03) | (0.40) | (0.43) | — | (0.77) | (0.77) | $10.47 | (3.73)% | 1.58% | (0.23)% | 57% | $7,007 | ||
2015 | $12.66 | (0.05) | 0.11 | 0.06 | — | (1.05) | (1.05) | $11.67 | 0.89% | 1.58% | (0.46)% | 50% | $6,040 | ||
2014 | $12.18 | (0.06) | 0.88 | 0.82 | (0.06) | (0.28) | (0.34) | $12.66 | 7.00% | 1.58% | (0.47)% | 46% | $5,632 | ||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
R5 Class | |||||||||||||||
2019(3) | $12.57 | 0.02 | 0.86 | 0.88 | (0.04) | (1.11) | (1.15) | $12.30 | 8.38% | 0.88%(4) | 0.44%(4) | 16% | $6 | ||
2018 | $13.90 | 0.06 | 0.12 | 0.18 | (0.04) | (1.47) | (1.51) | $12.57 | 1.52% | 0.87% | 0.49% | 42% | $6 | ||
2017(6) | $11.90 | 0.03 | 1.97 | 2.00 | – | – | – | $13.90 | 16.81% | 0.88%(4) | 0.34%(4) | 54%(7) | $6 | ||
R6 Class | |||||||||||||||
2019(3) | $12.63 | 0.04 | 0.85 | 0.89 | (0.05) | (1.11) | (1.16) | $12.36 | 8.59% | 0.73%(4) | 0.59%(4) | 16% | $59,173 | ||
2018 | $13.98 | 0.09 | 0.10 | 0.19 | (0.07) | (1.47) | (1.54) | $12.63 | 1.58% | 0.72% | 0.64% | 42% | $48,147 | ||
2017 | $11.05 | 0.05 | 3.05 | 3.10 | (0.04) | (0.13) | (0.17) | $13.98 | 28.46% | 0.73% | 0.49% | 54% | $37,248 | ||
2016 | $12.23 | 0.07 | (0.43) | (0.36) | (0.05) | (0.77) | (0.82) | $11.05 | (2.91)% | 0.73% | 0.62% | 57% | $16,508 | ||
2015 | $13.11 | 0.05 | 0.12 | 0.17 | — | (1.05) | (1.05) | $12.23 | 1.76% | 0.73% | 0.39% | 50% | $15,887 | ||
2014 | $12.53 | 0.02 | 0.93 | 0.95 | (0.09) | (0.28) | (0.37) | $13.11 | 7.80% | 0.73% | 0.38% | 46% | $16,992 | ||
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2019 (unaudited). |
(4) | Annualized. |
(5) | Per-share amount was less than $0.005. |
(6) | April 10, 2017 (commencement of sale) through November 30, 2017. |
(7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2017. |
See Notes to Financial Statements.
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
| ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2019 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92631 1907 | ||
Semiannual Report | |
May 31, 2019 | |
Global Small Cap Fund | |
Investor Class (AGCVX) | |
I Class (AGCSX) | |
A Class (AGCLX) | |
C Class (AGCHX) | |
R Class (AGCWX) | |
R6 Class (AGCTX) | |
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 |
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 |
Jonathan ThomasDear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2019. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, please visit our website, americancentury.com.
Trade Tensions Tempered Stock Gains
Sharp sell-offs opened and closed the six-month reporting period, with a rally in the middle. Mounting investors’ concerns about slowing global economic and earnings growth, U.S.-China trade tensions, falling oil prices and rising U.S. interest rates triggered the December 2018 sell-off. Despite signs that global growth was slowing, the Federal Reserve (Fed) raised interest rates in December, its fourth rate hike of the year. Investors feared this rate increase combined with the Fed’s bullish 2019 rate-hike outlook were too aggressive, further fueling the sell-off.
The new year brought a renewed sense of stability to the global financial markets and a new round of risk-on investing. Investors’ worst-case fears about growth and trade eased, and corporate earnings results were generally better than expected. Central banks in Europe and Japan continued to pursue dovish policies, and the Fed ended its rate-hike strategy amid moderating global growth and inflation. Additionally, equity valuations appeared attractive following the late-2018 stock market sell-off.
Investor sentiment took another U-turn in May. Heightened U.S.-China trade tensions and a new round of tariffs threatened global growth. Global oil prices plunged, contributing to the unrest. Then, late in the month, U.K. Prime Minister Theresa May’s resignation reignited fears of a no-deal Brexit. Against this backdrop, investors fled global stocks in favor of perceived safe-haven assets.
Despite the steep sell-offs in December and May, global stocks held onto modest gains for the entire six-month period. Non-U.S. stocks generally outperformed U.S. stocks. Among non-U.S. stocks, developed markets broadly outperformed emerging markets.
Looking ahead, we expect volatility to remain a formidable factor as investors react to global growth data, trade conflicts, 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,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2019 | |
Top Ten Holdings | % of net assets |
Rheinmetall AG | 1.7% |
Aveva Group plc | 1.6% |
CareTrust REIT, Inc. | 1.6% |
Kinsale Capital Group, Inc. | 1.6% |
R1 RCM, Inc. | 1.5% |
Hamilton Lane, Inc., Class A | 1.5% |
Kemper Corp. | 1.4% |
Badger Daylighting Ltd. | 1.4% |
Americold Realty Trust | 1.4% |
TopBuild Corp. | 1.3% |
Types of Investments in Portfolio | % of net assets |
Foreign Common Stocks | 54.0% |
Domestic Common Stocks | 45.0% |
Total Common Stocks | 99.0% |
Temporary Cash Investments | 0.7% |
Temporary Cash Investments - Securities Lending Collateral | 2.8% |
Other Assets and Liabilities | (2.5)% |
Investments by Country | % of net assets |
United States | 45.0% |
United Kingdom | 9.4% |
Sweden | 5.8% |
Canada | 5.5% |
Japan | 5.3% |
Australia | 3.2% |
China | 3.0% |
Belgium | 2.7% |
Netherlands | 2.6% |
France | 2.3% |
Germany | 2.3% |
Switzerland | 2.1% |
Other Countries | 9.8% |
Cash and Equivalents* | 1.0% |
*Includes temporary cash investments, temporary cash investments - securities lending collateral and other assets and liabilities.
3
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 December 1, 2018 to May 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.
4
Beginning Account Value 12/1/18 | Ending Account Value 5/31/19 | Expenses Paid During Period(1) 12/1/18 - 5/31/19 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,036.80 | $7.67 | 1.51% |
I Class | $1,000 | $1,037.40 | $6.65 | 1.31% |
A Class | $1,000 | $1,035.60 | $8.93 | 1.76% |
C Class | $1,000 | $1,031.70 | $12.71 | 2.51% |
R Class | $1,000 | $1,033.60 | $10.19 | 2.01% |
R6 Class | $1,000 | $1,037.90 | $5.89 | 1.16% |
Hypothetical | ||||
Investor Class | $1,000 | $1,017.40 | $7.59 | 1.51% |
I Class | $1,000 | $1,018.40 | $6.59 | 1.31% |
A Class | $1,000 | $1,016.16 | $8.85 | 1.76% |
C Class | $1,000 | $1,012.42 | $12.59 | 2.51% |
R Class | $1,000 | $1,014.91 | $10.10 | 2.01% |
R6 Class | $1,000 | $1,019.15 | $5.84 | 1.16% |
(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. |
5
Schedule of Investments |
MAY 31, 2019 (UNAUDITED)
Shares | Value | |||
COMMON STOCKS — 99.0% | ||||
Australia — 3.2% | ||||
Afterpay Touch Group Ltd.(1)(2) | 8,587 | $ | 142,432 | |
Cleanaway Waste Management Ltd. | 70,700 | 109,161 | ||
Jumbo Interactive Ltd. | 9,058 | 113,031 | ||
Northern Star Resources Ltd. | 15,867 | 107,845 | ||
WiseTech Global Ltd. | 9,255 | 155,344 | ||
627,813 | ||||
Belgium — 2.7% | ||||
Argenx SE(1) | 1,168 | 144,520 | ||
Barco NV | 1,042 | 202,628 | ||
Galapagos NV(1)(2) | 1,582 | 179,793 | ||
526,941 | ||||
Canada — 5.5% | ||||
Altus Group Ltd. | 4,461 | 97,597 | ||
ATS Automation Tooling Systems, Inc.(1) | 9,677 | 145,771 | ||
Badger Daylighting Ltd. | 7,532 | 266,428 | ||
Canada Goose Holdings, Inc.(1) | 3,100 | 104,315 | ||
FirstService Corp. | 1,276 | 115,638 | ||
Gibson Energy, Inc. | 10,451 | 170,575 | ||
Hudbay Minerals, Inc. | 8,075 | 39,670 | ||
Lightspeed POS, Inc.(1) | 6,416 | 128,643 | ||
1,068,637 | ||||
China — 3.0% | ||||
A-Living Services Co. Ltd., H Shares | 68,750 | 101,260 | ||
Baozun, Inc. ADR(1) | 3,867 | 151,702 | ||
Bosideng International Holdings Ltd. | 394,000 | 97,755 | ||
Li Ning Co. Ltd.(1) | 147,000 | 242,672 | ||
593,389 | ||||
Finland — 1.2% | ||||
Konecranes Oyj | 2,793 | 95,662 | ||
Valmet Oyj | 5,994 | 138,105 | ||
233,767 | ||||
France — 2.3% | ||||
Korian SA | 4,957 | 197,462 | ||
SOITEC(1) | 1,764 | 148,307 | ||
Solutions 30 SE(1) | 11,053 | 109,452 | ||
455,221 | ||||
Germany — 2.3% | ||||
Isra Vision AG | 3,041 | 110,667 | ||
Rheinmetall AG | 3,124 | 332,462 | ||
443,129 | ||||
6
Shares | Value | |||
Hong Kong — 0.5% | ||||
Melco International Development Ltd. | 50,000 | $ | 99,888 | |
India — 1.8% | ||||
Jubilant Foodworks Ltd. | 8,193 | 154,197 | ||
WNS Holdings Ltd. ADR(1) | 3,412 | 188,820 | ||
343,017 | ||||
Indonesia — 0.8% | ||||
Bank Tabungan Pensiunan Nasional Syariah Tbk PT(1) | 793,500 | 158,438 | ||
Israel — 0.7% | ||||
Kornit Digital Ltd.(1) | 5,189 | 147,212 | ||
Italy — 1.6% | ||||
Amplifon SpA | 4,617 | 102,320 | ||
FinecoBank Banca Fineco SpA | 11,182 | 115,524 | ||
Salvatore Ferragamo SpA(2) | 4,832 | 100,478 | ||
318,322 | ||||
Japan — 5.3% | ||||
Adastria Co. Ltd. | 7,200 | 176,710 | ||
KH Neochem Co. Ltd. | 6,800 | 181,612 | ||
Kobe Bussan Co. Ltd. | 4,200 | 191,761 | ||
Nabtesco Corp. | 4,200 | 104,500 | ||
Nachi-Fujikoshi Corp. | 300 | 11,297 | ||
Orix JREIT, Inc. | 91 | 163,296 | ||
SCREEN Holdings Co. Ltd. | 1,200 | 40,872 | ||
Trust Tech, Inc. | 5,500 | 158,031 | ||
1,028,079 | ||||
Netherlands — 2.6% | ||||
BE Semiconductor Industries NV(2) | 1,936 | 43,521 | ||
IMCD NV | 1,200 | 97,563 | ||
InterXion Holding NV(1) | 2,504 | 184,570 | ||
Takeaway.com NV(1)(2) | 2,046 | 180,550 | ||
506,204 | ||||
Norway — 0.9% | ||||
Subsea 7 SA | 15,975 | 176,478 | ||
Singapore — 0.5% | ||||
Mapletree Industrial Trust | 61,800 | 94,925 | ||
Sweden — 5.8% | ||||
Biotage AB | 8,044 | 95,053 | ||
Elekta AB, B Shares | 18,826 | 244,687 | ||
Fabege AB | 15,787 | 236,871 | ||
Fastighets AB Balder, B Shares(1) | 4,417 | 143,481 | ||
Indutrade AB | 7,807 | 227,615 | ||
MIPS AB | 9,592 | 177,123 | ||
1,124,830 | ||||
Switzerland — 2.1% | ||||
Georg Fischer AG | 114 | 96,337 | ||
Siegfried Holding AG(1) | 276 | 98,612 | ||
Tecan Group AG | 654 | 156,805 | ||
7
Shares | Value | |||
VAT Group AG(1) | 450 | $ | 48,468 | |
400,222 | ||||
Taiwan — 1.0% | ||||
Merida Industry Co. Ltd. | 35,000 | 189,754 | ||
United Arab Emirates — 0.8% | ||||
Network International Holdings plc(1) | 21,717 | 152,654 | ||
United Kingdom — 9.4% | ||||
Avast plc | 31,011 | 121,248 | ||
Aveva Group plc | 6,843 | 320,239 | ||
Burford Capital Ltd. | 4,710 | 98,859 | ||
Electrocomponents plc | 30,450 | 233,542 | ||
Entertainment One Ltd. | 38,543 | 213,221 | ||
Ferrexpo plc | 35,239 | 102,781 | ||
Fevertree Drinks plc | 3,990 | 134,075 | ||
Keywords Studios plc | 7,568 | 164,231 | ||
Moneysupermarket.com Group plc | 29,299 | 135,677 | ||
Nomad Foods Ltd.(1) | 9,120 | 193,526 | ||
Rentokil Initial plc | 21,802 | 103,229 | ||
1,820,628 | ||||
United States — 45.0% | ||||
Aerie Pharmaceuticals, Inc.(1) | 2,187 | 79,651 | ||
Aerojet Rocketdyne Holdings, Inc.(1) | 4,708 | 181,635 | ||
Amedisys, Inc.(1) | 863 | 96,924 | ||
Americold Realty Trust | 8,409 | 263,202 | ||
Ares Management Corp., Class A | 9,655 | 248,037 | ||
Avalara, Inc.(1) | 2,752 | 186,145 | ||
Callon Petroleum Co.(1)(2) | 14,108 | 88,175 | ||
CareTrust REIT, Inc. | 13,151 | 319,701 | ||
Centennial Resource Development, Inc., Class A(1) | 11,083 | 87,556 | ||
Chart Industries, Inc.(1) | 2,822 | 216,250 | ||
Chegg, Inc.(1) | 6,114 | 229,030 | ||
Churchill Downs, Inc. | 2,015 | 198,639 | ||
Clean Harbors, Inc.(1) | 2,135 | 136,896 | ||
Coupa Software, Inc.(1) | 497 | 54,277 | ||
DMC Global, Inc. | 1,481 | 100,175 | ||
EastGroup Properties, Inc. | 2,194 | 243,534 | ||
eHealth, Inc.(1) | 2,159 | 152,339 | ||
Ensign Group, Inc. (The) | 2,664 | 141,885 | ||
Etsy, Inc.(1) | 3,356 | 209,112 | ||
Euronet Worldwide, Inc.(1) | 1,377 | 213,490 | ||
Fair Isaac Corp.(1) | 712 | 210,681 | ||
Five9, Inc.(1) | 3,588 | 184,244 | ||
frontdoor, Inc.(1) | 4,756 | 191,239 | ||
H&E Equipment Services, Inc. | 2,722 | 66,172 | ||
Hamilton Lane, Inc., Class A | 5,963 | 293,141 | ||
HEICO Corp. | 1,967 | 239,167 | ||
Inphi Corp.(1) | 2,429 | 106,584 | ||
8
Shares | Value | |||
Inspire Medical Systems, Inc.(1) | 1,927 | $ | 108,818 | |
Insulet Corp.(1) | 1,445 | 158,647 | ||
Kemper Corp. | 3,381 | 280,589 | ||
Kinsale Capital Group, Inc. | 3,771 | 315,972 | ||
Lattice Semiconductor Corp.(1) | 4,043 | 51,750 | ||
LendingTree, Inc.(1)(2) | 424 | 159,314 | ||
Lumentum Holdings, Inc.(1) | 1,066 | 43,141 | ||
Masimo Corp.(1) | 1,060 | 138,584 | ||
MGP Ingredients, Inc.(2) | 2,391 | 143,962 | ||
MongoDB, Inc.(1) | 363 | 50,943 | ||
Monolithic Power Systems, Inc. | 553 | 64,397 | ||
NeoGenomics, Inc.(1) | 6,956 | 151,015 | ||
NOW, Inc.(1) | 7,250 | 94,467 | ||
Ollie's Bargain Outlet Holdings, Inc.(1) | 1,369 | 135,148 | ||
ONE Gas, Inc. | 1,679 | 147,013 | ||
Paylocity Holding Corp.(1) | 1,023 | 102,525 | ||
Planet Fitness, Inc., Class A(1) | 2,939 | 224,745 | ||
R1 RCM, Inc.(1) | 25,207 | 295,930 | ||
SI-BONE, Inc.(1) | 4,621 | 77,587 | ||
Skyline Champion Corp.(1) | 3,858 | 90,239 | ||
SVB Financial Group(1) | 475 | 95,665 | ||
Teladoc Health, Inc.(1)(2) | 2,497 | 145,126 | ||
TopBuild Corp.(1) | 3,163 | 250,731 | ||
Trupanion, Inc.(1)(2) | 3,056 | 89,632 | ||
World Wrestling Entertainment, Inc., Class A | 1,979 | 143,952 | ||
Zendesk, Inc.(1) | 2,972 | 250,391 | ||
Zynga, Inc., Class A(1) | 32,679 | 205,551 | ||
8,753,715 | ||||
TOTAL COMMON STOCKS (Cost $16,913,975) | 19,263,263 | |||
TEMPORARY CASH INVESTMENTS — 0.7% | ||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.00%, 4/30/20 - 2/15/48, valued at $130,030), in a joint trading account at 2.30%, dated 5/31/19, due 6/3/19 (Delivery value $127,508) | 127,484 | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 13,581 | 13,581 | ||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $141,065) | 141,065 | |||
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 2.8% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $537,551) | 537,551 | 537,551 | ||
TOTAL INVESTMENT SECURITIES — 102.5% (Cost $17,592,591) | 19,941,879 | |||
OTHER ASSETS AND LIABILITIES — (2.5)% | (492,362 | ) | ||
TOTAL NET ASSETS — 100.0% | $ | 19,449,517 | ||
9
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Information Technology | 20.5 | % |
Consumer Discretionary | 17.8 | % |
Industrials | 15.9 | % |
Health Care | 13.4 | % |
Financials | 10.3 | % |
Real Estate | 8.7 | % |
Consumer Staples | 3.4 | % |
Energy | 3.2 | % |
Communication Services | 2.9 | % |
Materials | 2.1 | % |
Utilities | 0.8 | % |
Cash and Equivalents* | 1.0 | % |
*Includes temporary cash investments, temporary cash investments - securities lending collateral and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
(1) | Non-income producing. |
(2) | Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $878,053. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers. |
(3) | Investment of cash collateral from securities on loan. At the period end, the aggregate market value of the collateral held by the fund was $912,059, which includes securities collateral of $374,508. |
See Notes to Financial Statements.
10
Statement of Assets and Liabilities |
MAY 31, 2019 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $17,055,040) | $ | 19,404,328 | |
Investment made with cash collateral received for securities on loan, at value (cost of $537,551) | 537,551 | ||
Total investment securities, at value (cost of $17,592,591) | 19,941,879 | ||
Foreign currency holdings, at value (cost of $6,079) | 6,098 | ||
Receivable for investments sold | 512,819 | ||
Receivable for capital shares sold | 22,161 | ||
Dividends and interest receivable | 17,026 | ||
Securities lending receivable | 1,167 | ||
Other assets | 1,686 | ||
20,502,836 | |||
Liabilities | |||
Payable for collateral received for securities on loan | 537,551 | ||
Payable for investments purchased | 472,564 | ||
Payable for capital shares redeemed | 16,193 | ||
Accrued management fees | 25,169 | ||
Distribution and service fees payable | 1,842 | ||
1,053,319 | |||
Net Assets | $ | 19,449,517 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 18,021,110 | |
Distributable earnings | 1,428,407 | ||
$ | 19,449,517 | ||
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $14,509,408 | 1,043,811 | $13.90 | |||
I Class, $0.01 Par Value | $1,015,827 | 72,584 | $14.00 | |||
A Class, $0.01 Par Value | $1,540,688 | 111,751 | $13.79* | |||
C Class, $0.01 Par Value | $1,451,380 | 107,924 | $13.45 | |||
R Class, $0.01 Par Value | $557,722 | 40,785 | $13.67 | |||
R6 Class, $0.01 Par Value | $374,492 | 26,626 | $14.06 | |||
*Maximum offering price $14.63 (net asset value divided by 0.9425).
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $10,162) | $ | 120,209 | |
Securities lending, net | 2,588 | ||
Interest | 1,430 | ||
124,227 | |||
Expenses: | |||
Management fees | 143,659 | ||
Distribution and service fees: | |||
A Class | 1,881 | ||
C Class | 7,108 | ||
R Class | 1,311 | ||
Directors' fees and expenses | 267 | ||
Other expenses | 1,031 | ||
155,257 | |||
Net investment income (loss) | (31,030 | ) | |
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | (270,689 | ) | |
Foreign currency translation transactions | (43 | ) | |
(270,732 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | 923,588 | ||
Translation of assets and liabilities in foreign currencies | 336 | ||
923,924 | |||
Net realized and unrealized gain (loss) | 653,192 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 622,162 | |
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2018 | ||||||
Increase (Decrease) in Net Assets | May 31, 2019 | November 30, 2018 | ||||
Operations | ||||||
Net investment income (loss) | $ | (31,030 | ) | $ | (197,702 | ) |
Net realized gain (loss) | (270,732 | ) | 34,675 | |||
Change in net unrealized appreciation (depreciation) | 923,924 | (1,199,184 | ) | |||
Net increase (decrease) in net assets resulting from operations | 622,162 | (1,362,211 | ) | |||
Distributions to Shareholders | ||||||
From earnings: | ||||||
Investor Class | (244,814 | ) | (529,903 | ) | ||
I Class | (19,145 | ) | (47,681 | ) | ||
A Class | (25,394 | ) | (81,489 | ) | ||
C Class | (24,698 | ) | (77,608 | ) | ||
R Class | (8,586 | ) | (17,910 | ) | ||
R6 Class | (6,072 | ) | (18,878 | ) | ||
Decrease in net assets from distributions | (328,709 | ) | (773,469 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (1,163,743 | ) | 7,815,917 | |||
Net increase (decrease) in net assets | (870,290 | ) | 5,680,237 | |||
Net Assets | ||||||
Beginning of period | 20,319,807 | 14,639,570 | ||||
End of period | $ | 19,449,517 | $ | 20,319,807 | ||
See Notes to Financial Statements.
13
Notes to Financial Statements |
MAY 31, 2019 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. Global Small Cap Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital growth.
The fund offers the Investor Class, I Class, A Class, C Class, R Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value 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.
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.
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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 lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
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.
15
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 31, 2019.
Remaining Contractual Maturity of Agreements | ||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | ||||||||
Securities Lending Transactions(1) | ||||||||||||
Common Stocks | $ | 537,551 | — | — | — | $ | 537,551 | |||||
Gross amount of recognized liabilities for securities lending transactions | $ | 537,551 | ||||||||||
(1) | Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand. |
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. ACIM owns 38% 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.
16
The annual management fee for each class is as follows:
Investor Class | I Class | A Class | C Class | R Class | R6 Class |
1.50% | 1.30% | 1.50% | 1.50% | 1.50% | 1.15% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 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.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2019 were $16,861,161 and $18,655,430, respectively.
17
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2019 | Year ended November 30, 2018 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 40,000,000 | 50,000,000 | ||||||||
Sold | 207,456 | $ | 2,796,739 | 1,046,645 | $ | 16,045,693 | ||||
Issued in reinvestment of distributions | 19,659 | 242,195 | 36,736 | 522,899 | ||||||
Redeemed | (293,004 | ) | (3,921,998 | ) | (653,315 | ) | (9,818,276 | ) | ||
(65,889 | ) | (883,064 | ) | 430,066 | 6,750,316 | |||||
I Class/Shares Authorized | 25,000,000 | 40,000,000 | ||||||||
Sold | 1,637 | 23,727 | 63,911 | 971,359 | ||||||
Issued in reinvestment of distributions | 1,544 | 19,145 | 3,332 | 47,681 | ||||||
Redeemed | (34,276 | ) | (445,218 | ) | (23,564 | ) | (325,709 | ) | ||
(31,095 | ) | (402,346 | ) | 43,679 | 693,331 | |||||
A Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 832 | 9,923 | 8,679 | 128,659 | ||||||
Issued in reinvestment of distributions | 2,075 | 25,394 | 5,750 | 81,489 | ||||||
Redeemed | (4 | ) | (50 | ) | (8,474 | ) | (135,368 | ) | ||
2,903 | 35,267 | 5,955 | 74,780 | |||||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | — | — | 351 | 5,042 | ||||||
Issued in reinvestment of distributions | 2,061 | 24,698 | 5,556 | 77,608 | ||||||
Redeemed | — | — | (880 | ) | (12,385 | ) | ||||
2,061 | 24,698 | 5,027 | 70,265 | |||||||
R Class/Shares Authorized | 20,000,000 | 30,000,000 | ||||||||
Sold | 6,102 | 81,677 | 15,498 | 235,808 | ||||||
Issued in reinvestment of distributions | 707 | 8,586 | 1,270 | 17,910 | ||||||
Redeemed | (2,584 | ) | (34,712 | ) | (3,267 | ) | (48,854 | ) | ||
4,225 | 55,551 | 13,501 | 204,864 | |||||||
R6 Class/Shares Authorized | 20,000,000 | 30,000,000 | ||||||||
Sold | 146 | 2,021 | 258 | 3,917 | ||||||
Issued in reinvestment of distributions | 488 | 6,072 | 1,318 | 18,878 | ||||||
Redeemed | (144 | ) | (1,942 | ) | (29 | ) | (434 | ) | ||
490 | 6,151 | 1,547 | 22,361 | |||||||
Net increase (decrease) | (87,305 | ) | $ | (1,163,743 | ) | 499,775 | $ | 7,815,917 | ||
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6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | ||||||||
Australia | — | $ | 627,813 | — | ||||
Belgium | — | 526,941 | — | |||||
Canada | $ | 104,315 | 964,322 | — | ||||
China | 151,702 | 441,687 | — | |||||
Finland | — | 233,767 | — | |||||
France | — | 455,221 | — | |||||
Germany | — | 443,129 | — | |||||
Hong Kong | — | 99,888 | — | |||||
India | 188,820 | 154,197 | — | |||||
Indonesia | — | 158,438 | — | |||||
Italy | — | 318,322 | — | |||||
Japan | — | 1,028,079 | — | |||||
Netherlands | 184,570 | 321,634 | — | |||||
Norway | — | 176,478 | — | |||||
Singapore | — | 94,925 | — | |||||
Sweden | — | 1,124,830 | — | |||||
Switzerland | — | 400,222 | — | |||||
Taiwan | — | 189,754 | — | |||||
United Arab Emirates | — | 152,654 | — | |||||
United Kingdom | 193,526 | 1,627,102 | — | |||||
Other Countries | 8,900,927 | — | — | |||||
Temporary Cash Investments | 13,581 | 127,484 | — | |||||
Temporary Cash Investments - Securities Lending Collateral | 537,551 | — | — | |||||
$ | 10,274,992 | $ | 9,666,887 | — | ||||
19
7. 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 in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
The fund’s investment process may result in high portfolio turnover, which could mean high transaction costs, affecting both performance and capital gains tax liabilities to investors.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 17,838,931 | |
Gross tax appreciation of investments | $ | 2,694,849 | |
Gross tax depreciation of investments | (591,901 | ) | |
Net tax appreciation (depreciation) of investments | $ | 2,102,948 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2018, the fund had late-year ordinary loss deferrals of $(95,659) and post-October capital loss deferrals of $(367,725), which represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
20
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Realized Gains | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2019(3) | $13.66 | (0.02) | 0.49 | 0.47 | (0.23) | $13.90 | 3.68% | 1.51%(4) | (0.23)%(4) | 87% | $14,509 | ||
2018 | $14.80 | (0.13) | (0.24) | (0.37) | (0.77) | $13.66 | (2.73)% | 1.50% | (0.86)% | 147% | $15,159 | ||
2017 | $10.85 | (0.06) | 4.01 | 3.95 | — | $14.80 | 36.41% | 1.51% | (0.44)% | 130% | $10,059 | ||
2016(5) | $10.00 | (0.03) | 0.88 | 0.85 | — | $10.85 | 8.50% | 1.50%(4) | (0.40)%(4) | 95% | $2,357 | ||
I Class | |||||||||||||
2019(3) | $13.74 | —(6) | 0.49 | 0.49 | (0.23) | $14.00 | 3.74% | 1.31%(4) | (0.03)%(4) | 87% | $1,016 | ||
2018 | $14.85 | (0.10) | (0.24) | (0.34) | (0.77) | $13.74 | (2.50)% | 1.30% | (0.66)% | 147% | $1,424 | ||
2017 | $10.86 | (0.02) | 4.01 | 3.99 | — | $14.85 | 36.74% | 1.31% | (0.24)% | 130% | $891 | ||
2016(5) | $10.00 | (0.01) | 0.87 | 0.86 | — | $10.86 | 8.60% | 1.30%(4) | (0.20)%(4) | 95% | $652 | ||
A Class | |||||||||||||
2019(3) | $13.57 | (0.03) | 0.48 | 0.45 | (0.23) | $13.79 | 3.56% | 1.76%(4) | (0.48)%(4) | 87% | $1,541 | ||
2018 | $14.74 | (0.17) | (0.23) | (0.40) | (0.77) | $13.57 | (2.95)% | 1.75% | (1.11)% | 147% | $1,477 | ||
2017 | $10.83 | (0.08) | 3.99 | 3.91 | — | $14.74 | 36.10% | 1.76% | (0.69)% | 130% | $1,517 | ||
2016(5) | $10.00 | (0.05) | 0.88 | 0.83 | — | $10.83 | 8.30% | 1.75%(4) | (0.65)%(4) | 95% | $1,083 | ||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Realized Gains | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
C Class | |||||||||||||
2019(3) | $13.29 | (0.08) | 0.47 | 0.39 | (0.23) | $13.45 | 3.17% | 2.51%(4) | (1.23)%(4) | 87% | $1,451 | ||
2018 | $14.56 | (0.28) | (0.22) | (0.50) | (0.77) | $13.29 | (3.71)% | 2.50% | (1.86)% | 147% | $1,407 | ||
2017 | $10.78 | (0.17) | 3.95 | 3.78 | — | $14.56 | 35.06% | 2.51% | (1.44)% | 130% | $1,468 | ||
2016(5) | $10.00 | (0.10) | 0.88 | 0.78 | — | $10.78 | 7.80% | 2.50%(4) | (1.40)%(4) | 95% | $1,078 | ||
R Class | |||||||||||||
2019(3) | $13.48 | (0.05) | 0.47 | 0.42 | (0.23) | $13.67 | 3.36% | 2.01%(4) | (0.73)%(4) | 87% | $558 | ||
2018 | $14.68 | (0.21) | (0.22) | (0.43) | (0.77) | $13.48 | (3.18)% | 2.00% | (1.36)% | 147% | $493 | ||
2017 | $10.81 | (0.11) | 3.98 | 3.87 | — | $14.68 | 35.80% | 2.01% | (0.94)% | 130% | $338 | ||
2016(5) | $10.00 | (0.06) | 0.87 | 0.81 | — | $10.81 | 8.10% | 2.00%(4) | (0.90)%(4) | 95% | $218 | ||
R6 Class | |||||||||||||
2019(3) | $13.79 | 0.01 | 0.49 | 0.50 | (0.23) | $14.06 | 3.79% | 1.16%(4) | 0.12%(4) | 87% | $374 | ||
2018 | $14.89 | (0.08) | (0.25) | (0.33) | (0.77) | $13.79 | (2.36)% | 1.15% | (0.51)% | 147% | $361 | ||
2017 | $10.87 | (0.01) | 4.03 | 4.02 | — | $14.89 | 36.86% | 1.16% | (0.09)% | 130% | $366 | ||
2016(5) | $10.00 | —(6) | 0.87 | 0.87 | — | $10.87 | 8.80% | 1.15%(4) | (0.05)%(4) | 95% | $217 | ||
Notes to Financial Highlights | |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2019 (unaudited). |
(4) | Annualized. |
(5) | March 29, 2016 (fund inception) through November 30, 2016. |
(6) | Per-share amount was less than $0.005. |
See Notes to Financial Statements.
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
| ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2019 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92638 1907 | ||
Semiannual Report | |
May 31, 2019 | |
International Growth Fund | |
Investor Class (TWIEX) | |
I Class (TGRIX) | |
Y Class (ATYGX) | |
A Class (TWGAX) | |
C Class (AIWCX) | |
R Class (ATGRX) | |
R5 Class (ATGGX) | |
R6 Class (ATGDX) | |
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 |
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 |
Jonathan ThomasDear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2019. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, please visit our website, americancentury.com.
Trade Tensions Tempered Stock Gains
Sharp sell-offs opened and closed the six-month reporting period, with a rally in the middle. Mounting investors’ concerns about slowing global economic and earnings growth, U.S.-China trade tensions, falling oil prices and rising U.S. interest rates triggered the December 2018 sell-off. Despite signs that global growth was slowing, the Federal Reserve (Fed) raised interest rates in December, its fourth rate hike of the year. Investors feared this rate increase combined with the Fed’s bullish 2019 rate-hike outlook were too aggressive, further fueling the sell-off.
The new year brought a renewed sense of stability to the global financial markets and a new round of risk-on investing. Investors’ worst-case fears about growth and trade eased, and corporate earnings results were generally better than expected. Central banks in Europe and Japan continued to pursue dovish policies, and the Fed ended its rate-hike strategy amid moderating global growth and inflation. Additionally, equity valuations appeared attractive following the late-2018 stock market sell-off.
Investor sentiment took another U-turn in May. Heightened U.S.-China trade tensions and a new round of tariffs threatened global growth. Global oil prices plunged, contributing to the unrest. Then, late in the month, U.K. Prime Minister Theresa May’s resignation reignited fears of a no-deal Brexit. Against this backdrop, investors fled global stocks in favor of perceived safe-haven assets.
Despite the steep sell-offs in December and May, global stocks held onto modest gains for the entire six-month period. Non-U.S. stocks generally outperformed U.S. stocks. Among non-U.S. stocks, developed markets broadly outperformed emerging markets.
Looking ahead, we expect volatility to remain a formidable factor as investors react to global growth data, trade conflicts, 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,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2019 | |
Top Ten Holdings | % of net assets |
AIA Group Ltd. | 3.0% |
AstraZeneca plc | 2.4% |
CSL Ltd. | 2.4% |
Diageo plc | 2.2% |
Nestle SA | 2.2% |
Lonza Group AG | 2.1% |
Danone SA | 2.1% |
London Stock Exchange Group plc | 2.0% |
Keyence Corp. | 2.0% |
Symrise AG | 1.9% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 99.5% |
Temporary Cash Investments | 0.3% |
Other Assets and Liabilities | 0.2% |
Investments by Country | % of net assets |
Japan | 14.2% |
United Kingdom | 13.0% |
Switzerland | 11.1% |
France | 10.2% |
Netherlands | 6.8% |
Germany | 6.7% |
Australia | 4.8% |
Sweden | 4.8% |
China | 4.0% |
Hong Kong | 3.9% |
Canada | 3.1% |
Ireland | 3.1% |
Other Countries | 13.8% |
Cash and Equivalents* | 0.5% |
*Includes temporary cash investments and other assets and liabilities.
3
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 December 1, 2018 to May 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.
4
Beginning Account Value 12/1/18 | Ending Account Value 5/31/19 | Expenses Paid During Period(1) 12/1/18 - 5/31/19 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,048.10 | $6.03 | 1.18% |
I Class | $1,000 | $1,049.70 | $5.01 | 0.98% |
Y Class | $1,000 | $1,050.60 | $4.24 | 0.83% |
A Class | $1,000 | $1,047.70 | $7.30 | 1.43% |
C Class | $1,000 | $1,043.60 | $11.11 | 2.18% |
R Class | $1,000 | $1,045.30 | $8.57 | 1.68% |
R5 Class | $1,000 | $1,049.80 | $5.01 | 0.98% |
R6 Class | $1,000 | $1,050.50 | $4.24 | 0.83% |
Hypothetical | ||||
Investor Class | $1,000 | $1,019.05 | $5.94 | 1.18% |
I Class | $1,000 | $1,020.05 | $4.94 | 0.98% |
Y Class | $1,000 | $1,020.79 | $4.18 | 0.83% |
A Class | $1,000 | $1,017.80 | $7.19 | 1.43% |
C Class | $1,000 | $1,014.06 | $10.95 | 2.18% |
R Class | $1,000 | $1,016.56 | $8.45 | 1.68% |
R5 Class | $1,000 | $1,020.05 | $4.94 | 0.98% |
R6 Class | $1,000 | $1,020.79 | $4.18 | 0.83% |
(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. |
5
Schedule of Investments |
MAY 31, 2019 (UNAUDITED)
Shares | Value | |||
COMMON STOCKS — 99.5% | ||||
Australia — 4.8% | ||||
Atlassian Corp. plc, Class A(1) | 47,490 | $ | 5,978,041 | |
BHP Group Ltd. | 556,760 | 14,537,942 | ||
CSL Ltd. | 219,840 | 31,269,252 | ||
Treasury Wine Estates Ltd. | 1,059,560 | 10,967,690 | ||
62,752,925 | ||||
Austria — 1.0% | ||||
Erste Group Bank AG(1) | 379,982 | 13,468,233 | ||
Belgium — 1.1% | ||||
KBC Group NV | 215,420 | 14,149,201 | ||
Brazil — 1.5% | ||||
Localiza Rent a Car SA | 1,166,896 | 11,330,098 | ||
Magazine Luiza SA | 162,400 | 8,079,130 | ||
19,409,228 | ||||
Canada — 3.1% | ||||
Alimentation Couche-Tard, Inc., B Shares | 244,030 | 14,976,538 | ||
Canada Goose Holdings, Inc.(1) | 244,460 | 8,226,079 | ||
Canadian Pacific Railway Ltd. | 46,340 | 10,157,360 | ||
Nutrien Ltd. | 152,510 | 7,438,191 | ||
40,798,168 | ||||
China — 4.0% | ||||
Alibaba Group Holding Ltd. ADR(1) | 109,810 | 16,390,241 | ||
ANTA Sports Products Ltd. | 2,044,000 | 12,467,209 | ||
GDS Holdings Ltd. ADR(1) | 189,580 | 6,159,454 | ||
TAL Education Group ADR(1) | 151,760 | 5,222,062 | ||
Tencent Holdings Ltd. | 301,000 | 12,482,769 | ||
52,721,735 | ||||
Denmark — 1.8% | ||||
Chr Hansen Holding A/S | 126,990 | 13,225,378 | ||
DSV A/S | 113,632 | 10,105,831 | ||
23,331,209 | ||||
Finland — 1.3% | ||||
Neste Oyj | 519,390 | 17,506,476 | ||
France — 10.2% | ||||
Airbus SE | 155,310 | 19,957,331 | ||
BNP Paribas SA | 113,860 | 5,189,524 | ||
Danone SA | 336,810 | 26,881,548 | ||
Dassault Systemes SE | 111,060 | 16,459,284 | ||
Edenred | 223,170 | 10,191,491 | ||
Kering SA | 36,350 | 18,881,824 | ||
Peugeot SA | 228,320 | 5,088,720 | ||
TOTAL SA | 279,310 | 14,447,972 | ||
6
Shares | Value | |||
Ubisoft Entertainment SA(1) | 67,783 | $ | 5,558,373 | |
Vivendi SA | 413,520 | 11,114,203 | ||
133,770,270 | ||||
Germany — 6.7% | ||||
adidas AG | 67,860 | 19,421,362 | ||
Aroundtown SA | 1,683,810 | 14,297,178 | ||
HUGO BOSS AG | 69,970 | 4,071,310 | ||
Infineon Technologies AG | 371,870 | 6,707,862 | ||
SAP SE | 140,640 | 17,379,279 | ||
Symrise AG | 271,490 | 25,446,326 | ||
87,323,317 | ||||
Hong Kong — 3.9% | ||||
AIA Group Ltd. | 4,140,600 | 38,790,737 | ||
Hong Kong Exchanges & Clearing Ltd. | 385,400 | 12,223,269 | ||
51,014,006 | ||||
Hungary — 0.4% | ||||
OTP Bank Nyrt | 122,440 | 5,108,753 | ||
India — 0.8% | ||||
HDFC Bank Ltd. | 283,300 | 9,869,152 | ||
Indonesia — 0.7% | ||||
Bank Central Asia Tbk PT | 4,353,800 | 8,871,043 | ||
Ireland — 3.1% | ||||
CRH plc | 532,050 | 16,644,938 | ||
ICON plc(1) | 54,820 | 7,760,319 | ||
Kerry Group plc, A Shares | 132,660 | 15,327,924 | ||
39,733,181 | ||||
Italy — 0.5% | ||||
Nexi SpA(1) | 726,095 | 7,057,066 | ||
Japan — 14.2% | ||||
Fast Retailing Co. Ltd. | 24,500 | 14,172,171 | ||
GMO Payment Gateway, Inc. | 78,900 | 5,268,772 | ||
Hoya Corp. | 256,400 | 17,744,724 | ||
JGC Corp. | 548,100 | 7,251,882 | ||
Keyence Corp. | 46,600 | 26,139,279 | ||
MonotaRO Co. Ltd. | 543,700 | 11,522,990 | ||
Obic Co. Ltd. | 94,600 | 11,357,692 | ||
Pan Pacific International Holdings Corp. | 295,400 | 18,192,375 | ||
Recruit Holdings Co. Ltd. | 682,300 | 21,768,798 | ||
Shiseido Co. Ltd. | 271,400 | 19,468,133 | ||
Sysmex Corp. | 257,100 | 17,777,199 | ||
Terumo Corp. | 536,500 | 15,166,058 | ||
185,830,073 | ||||
Netherlands — 6.8% | ||||
Adyen NV(1) | 16,908 | 13,595,734 | ||
ASML Holding NV | 76,740 | 14,460,430 | ||
InterXion Holding NV(1) | 261,140 | 19,248,629 | ||
Koninklijke DSM NV | 191,680 | 21,541,604 | ||
7
Shares | Value | |||
Koninklijke KPN NV | 3,738,540 | $ | 11,429,988 | |
QIAGEN NV(1) | 208,665 | 7,945,963 | ||
88,222,348 | ||||
New Zealand — 0.9% | ||||
a2 Milk Co. Ltd.(1) | 1,176,870 | 11,975,976 | ||
Norway — 0.6% | ||||
Aker BP ASA | 139,504 | 3,747,131 | ||
Subsea 7 SA | 410,560 | 4,535,507 | ||
8,282,638 | ||||
Russia — 0.9% | ||||
Yandex NV, A Shares(1) | 310,370 | 11,148,490 | ||
Spain — 1.6% | ||||
Cellnex Telecom SA(1) | 585,734 | 20,571,984 | ||
Sweden — 4.8% | ||||
Atlas Copco AB, A Shares | 251,310 | 6,771,807 | ||
Hexagon AB, B Shares | 241,810 | 11,225,811 | ||
Lundin Petroleum AB | 470,590 | 12,769,672 | ||
Swedish Match AB | 338,590 | 15,293,395 | ||
Telefonaktiebolaget LM Ericsson, B Shares | 1,725,090 | 16,650,013 | ||
62,710,698 | ||||
Switzerland — 11.1% | ||||
Alcon, Inc.(1) | 136,948 | 7,964,526 | ||
Lonza Group AG(1) | 89,090 | 27,364,851 | ||
Nestle SA | 288,000 | 28,603,424 | ||
Novartis AG | 267,740 | 22,994,302 | ||
Partners Group Holding AG | 19,520 | 13,684,103 | ||
Sika AG | 99,071 | 14,705,586 | ||
Straumann Holding AG | 16,950 | 13,939,192 | ||
Temenos AG(1) | 93,150 | 16,179,243 | ||
145,435,227 | ||||
Taiwan — 0.7% | ||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,228,000 | 9,095,672 | ||
United Kingdom — 13.0% | ||||
Ashtead Group plc | 178,646 | 4,194,377 | ||
Associated British Foods plc | 461,843 | 14,424,241 | ||
AstraZeneca plc | 427,490 | 31,545,462 | ||
B&M European Value Retail SA | 3,367,313 | 15,032,562 | ||
Bunzl plc | 251,770 | 6,738,477 | ||
Burberry Group plc | 388,400 | 8,337,135 | ||
Diageo plc | 696,610 | 29,283,006 | ||
Ferguson plc(1) | 98,880 | 6,386,854 | ||
London Stock Exchange Group plc | 394,140 | 26,260,258 | ||
Melrose Industries plc | 4,555,020 | 9,416,396 | ||
Prudential plc | 403,520 | 8,040,744 | ||
Standard Chartered plc (London) | 1,204,550 | 10,479,129 | ||
170,138,641 | ||||
TOTAL COMMON STOCKS (Cost $1,106,420,070) | 1,300,295,710 | |||
8
Shares | Value | |||
TEMPORARY CASH INVESTMENTS — 0.3% | ||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.00%, 4/30/20 - 2/15/48, valued at $3,231,591), in a joint trading account at 2.30%, dated 5/31/19, due 6/3/19 (Delivery value $3,168,910) | $ | 3,168,303 | ||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.25%, 11/15/27, valued at $341,854), at 1.25%, dated 5/31/19, due 6/3/19 (Delivery value $335,035) | 335,000 | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 535 | 535 | ||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $3,503,838) | 3,503,838 | |||
TOTAL INVESTMENT SECURITIES — 99.8% (Cost $1,109,923,908) | 1,303,799,548 | |||
OTHER ASSETS AND LIABILITIES — 0.2% | 2,636,000 | |||
TOTAL NET ASSETS — 100.0% | $ | 1,306,435,548 | ||
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Information Technology | 15.5 | % |
Health Care | 15.4 | % |
Consumer Staples | 14.4 | % |
Financials | 12.7 | % |
Consumer Discretionary | 11.6 | % |
Industrials | 10.4 | % |
Materials | 8.8 | % |
Communication Services | 5.6 | % |
Energy | 4.0 | % |
Real Estate | 1.1 | % |
Cash and Equivalents* | 0.5 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
(1) | Non-income producing. |
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2019 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $1,109,923,908) | $ | 1,303,799,548 | |
Foreign currency holdings, at value (cost of $700,464) | 702,617 | ||
Receivable for investments sold | 13,757,630 | ||
Receivable for capital shares sold | 213,864 | ||
Dividends and interest receivable | 3,548,252 | ||
Other assets | 86,884 | ||
1,322,108,795 | |||
Liabilities | |||
Payable for investments purchased | 11,840,867 | ||
Payable for capital shares redeemed | 2,321,747 | ||
Accrued management fees | 1,315,947 | ||
Distribution and service fees payable | 20,569 | ||
Accrued foreign taxes | 174,117 | ||
15,673,247 | |||
Net Assets | $ | 1,306,435,548 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 1,143,685,270 | |
Distributable earnings | 162,750,278 | ||
$ | 1,306,435,548 | ||
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $1,109,039,341 | 100,045,459 | $11.09 | |||
I Class, $0.01 Par Value | $71,234,258 | 6,473,357 | $11.00 | |||
Y Class, $0.01 Par Value | $11,382,350 | 1,034,034 | $11.01 | |||
A Class, $0.01 Par Value | $70,171,568 | 6,272,594 | $11.19* | |||
C Class, $0.01 Par Value | $3,107,685 | 287,806 | $10.80 | |||
R Class, $0.01 Par Value | $5,595,115 | 494,503 | $11.31 | |||
R5 Class, $0.01 Par Value | $5,712 | 519 | $11.01 | |||
R6 Class, $0.01 Par Value | $35,899,519 | 3,263,392 | $11.00 | |||
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $1,547,265) | $ | 15,118,531 | |
Interest | 55,636 | ||
15,174,167 | |||
Expenses: | |||
Management fees | 7,580,256 | ||
Distribution and service fees: | |||
A Class | 82,521 | ||
C Class | 18,103 | ||
R Class | 13,803 | ||
Directors' fees and expenses | 18,099 | ||
Other expenses | 24,788 | ||
7,737,570 | |||
Net investment income (loss) | 7,436,597 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | (17,395,231 | ) | |
Foreign currency translation transactions | (124,970 | ) | |
(17,520,201 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $(123,588)) | 71,391,421 | ||
Translation of assets and liabilities in foreign currencies | 9,432 | ||
71,400,853 | |||
Net realized and unrealized gain (loss) | 53,880,652 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 61,317,249 | |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2018 | ||||||
Increase (Decrease) in Net Assets | May 31, 2019 | November 30, 2018 | ||||
Operations | ||||||
Net investment income (loss) | $ | 7,436,597 | $ | 9,806,107 | ||
Net realized gain (loss) | (17,520,201 | ) | 109,630,662 | |||
Change in net unrealized appreciation (depreciation) | 71,400,853 | (257,563,094 | ) | |||
Net increase (decrease) in net assets resulting from operations | 61,317,249 | (138,126,325 | ) | |||
Distributions to Shareholders | ||||||
From earnings: | ||||||
Investor Class | (113,411,938 | ) | (76,415,742 | ) | ||
I Class | (6,954,669 | ) | (5,107,583 | ) | ||
Y Class | (673,691 | ) | (2,854 | ) | ||
A Class | (6,300,639 | ) | (4,086,063 | ) | ||
C Class | (380,655 | ) | (324,175 | ) | ||
R Class | (308,126 | ) | (180,431 | ) | ||
R5 Class | (561 | ) | (350 | ) | ||
R6 Class | (3,902,361 | ) | (1,801,202 | ) | ||
Decrease in net assets from distributions | (131,932,640 | ) | (87,918,400 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 19,505,144 | 17,365,423 | ||||
Net increase (decrease) in net assets | (51,110,247 | ) | (208,679,302 | ) | ||
Net Assets | ||||||
Beginning of period | 1,357,545,795 | 1,566,225,097 | ||||
End of period | $ | 1,306,435,548 | $ | 1,357,545,795 | ||
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2019 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. International Growth Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek capital growth.
The fund offers the Investor Class, I Class, Y Class, A Class, C Class, R Class, R5 Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value 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.
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.
13
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. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
14
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 20% of the shares of the fund.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that 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 International Growth Fund, one fund in a series issued by the corporation.
The management fee schedule range and the effective annual management fee for each class for the period ended May 31, 2019 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |
Investor Class | 1.050% to 1.500% | 1.18% |
I Class | 0.850% to 1.300% | 0.98% |
Y Class | 0.700% to 1.150% | 0.83% |
A Class | 1.050% to 1.500% | 1.18% |
C Class | 1.050% to 1.500% | 1.18% |
R Class | 1.050% to 1.500% | 1.18% |
R5 Class | 0.850% to 1.300% | 0.98% |
R6 Class | 0.700% to 1.150% | 0.83% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 31, 2019 are detailed in the Statement of Operations.
15
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases were $1,562,127 and there were no interfund sales.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2019 were $507,215,126 and $610,759,612, respectively.
16
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2019 | Year ended November 30, 2018 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 1,150,000,000 | 1,150,000,000 | ||||||||
Sold | 1,720,844 | $ | 18,489,697 | 6,514,994 | $ | 87,319,961 | ||||
Issued in reinvestment of distributions | 11,000,262 | 110,112,626 | 5,636,081 | 74,377,220 | ||||||
Redeemed | (11,848,408 | ) | (131,502,349 | ) | (11,335,729 | ) | (151,348,295 | ) | ||
872,698 | (2,900,026 | ) | 815,346 | 10,348,886 | ||||||
I Class/Shares Authorized | 70,000,000 | 80,000,000 | ||||||||
Sold | 802,288 | 8,733,803 | 2,352,108 | 31,525,036 | ||||||
Issued in reinvestment of distributions | 671,521 | 6,668,204 | 375,314 | 4,920,195 | ||||||
Redeemed | (753,162 | ) | (8,149,492 | ) | (3,575,764 | ) | (46,693,872 | ) | ||
720,647 | 7,252,515 | (848,342 | ) | (10,248,641 | ) | |||||
Y Class/Shares Authorized | 30,000,000 | 25,000,000 | ||||||||
Sold | 505,815 | 5,546,693 | 684,641 | 8,989,207 | ||||||
Issued in reinvestment of distributions | 65,166 | 646,443 | 211 | 2,854 | ||||||
Redeemed | (61,376 | ) | (686,947 | ) | (160,859 | ) | (1,974,982 | ) | ||
509,605 | 5,506,189 | 523,993 | 7,017,079 | |||||||
A Class/Shares Authorized | 70,000,000 | 70,000,000 | ||||||||
Sold | 726,968 | 8,261,177 | 1,051,613 | 14,187,925 | ||||||
Issued in reinvestment of distributions | 614,961 | 6,217,253 | 301,770 | 4,018,061 | ||||||
Redeemed | (508,604 | ) | (5,606,118 | ) | (1,531,409 | ) | (20,651,991 | ) | ||
833,325 | 8,872,312 | (178,026 | ) | (2,446,005 | ) | |||||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 6,908 | 70,733 | 121,747 | 1,629,831 | ||||||
Issued in reinvestment of distributions | 36,374 | 356,101 | 23,686 | 306,426 | ||||||
Redeemed | (126,990 | ) | (1,365,204 | ) | (276,249 | ) | (3,605,194 | ) | ||
(83,708 | ) | (938,370 | ) | (130,816 | ) | (1,668,937 | ) | |||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 277,956 | 2,821,530 | 67,863 | 926,078 | ||||||
Issued in reinvestment of distributions | 28,116 | 287,906 | 12,462 | 167,835 | ||||||
Redeemed | (80,012 | ) | (917,808 | ) | (69,684 | ) | (948,193 | ) | ||
226,060 | 2,191,628 | 10,641 | 145,720 | |||||||
R5 Class/Shares Authorized | 20,000,000 | 20,000,000 | ||||||||
Issued in reinvestment of distributions | 57 | 561 | 26 | 350 | ||||||
R6 Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||
Sold | 534,068 | 5,749,383 | 2,069,352 | 27,346,479 | ||||||
Issued in reinvestment of distributions | 392,562 | 3,894,212 | 137,501 | 1,801,202 | ||||||
Redeemed | (918,395 | ) | (10,123,260 | ) | (1,122,461 | ) | (14,930,710 | ) | ||
8,235 | (479,665 | ) | 1,084,392 | 14,216,971 | ||||||
Net increase (decrease) | 3,086,919 | $ | 19,505,144 | 1,277,214 | $ | 17,365,423 | ||||
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 | ||||||||
Australia | $ | 5,978,041 | $ | 56,774,884 | — | |||
Canada | 8,226,079 | 32,572,089 | — | |||||
China | 27,771,757 | 24,949,978 | — | |||||
Ireland | 7,760,319 | 31,972,862 | — | |||||
Netherlands | 27,194,592 | 61,027,756 | — | |||||
Russia | 11,148,490 | — | — | |||||
Other Countries | — | 1,004,918,863 | — | |||||
Temporary Cash Investments | 535 | 3,503,303 | — | |||||
$ | 88,079,813 | $ | 1,215,719,735 | — | ||||
7. 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 in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
18
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 1,112,163,746 | |
Gross tax appreciation of investments | $ | 220,182,739 | |
Gross tax depreciation of investments | (28,546,937 | ) | |
Net tax appreciation (depreciation) of investments | $ | 191,635,802 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2018, the fund had post-October capital loss deferrals of $(15,431,943), which represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
19
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||||
2019(3) | $11.83 | 0.06 | 0.39 | 0.45 | (0.12) | (1.07) | (1.19) | $11.09 | 4.81% | 1.18%(4) | 1.13%(4) | 39% | $1,109,039 | ||
2018 | $13.80 | 0.08 | (1.28) | (1.20) | (0.13) | (0.64) | (0.77) | $11.83 | (9.23)% | 1.17% | 0.62% | 69% | $1,173,094 | ||
2017 | $10.56 | 0.10 | 3.19 | 3.29 | (0.05) | — | (0.05) | $13.80 | 31.32% | 1.17% | 0.80% | 57% | $1,357,353 | ||
2016 | $12.25 | 0.09 | (1.10) | (1.01) | (0.06) | (0.62) | (0.68) | $10.56 | (8.59)% | 1.18% | 0.83% | 70% | $1,229,531 | ||
2015 | $13.40 | 0.07 | (0.34) | (0.27) | (0.08) | (0.80) | (0.88) | $12.25 | (1.86)% | 1.17% | 0.62% | 62% | $1,432,784 | ||
2014 | $13.78 | 0.10 | —(5) | 0.10 | (0.20) | (0.28) | (0.48) | $13.40 | 0.80% | 1.18% | 0.74% | 75% | $1,521,655 | ||
I Class | |||||||||||||||
2019(3) | $11.76 | 0.07 | 0.39 | 0.46 | (0.15) | (1.07) | (1.22) | $11.00 | 4.97% | 0.98%(4) | 1.33%(4) | 39% | $71,234 | ||
2018 | $13.74 | 0.10 | (1.28) | (1.18) | (0.16) | (0.64) | (0.80) | $11.76 | (9.12)% | 0.97% | 0.82% | 69% | $67,677 | ||
2017 | $10.51 | 0.13 | 3.17 | 3.30 | (0.07) | — | (0.07) | $13.74 | 31.64% | 0.97% | 1.00% | 57% | $90,679 | ||
2016 | $12.19 | 0.11 | (1.09) | (0.98) | (0.08) | (0.62) | (0.70) | $10.51 | (8.40)% | 0.98% | 1.03% | 70% | $59,236 | ||
2015 | $13.33 | 0.10 | (0.34) | (0.24) | (0.10) | (0.80) | (0.90) | $12.19 | (1.63)% | 0.97% | 0.82% | 62% | $70,422 | ||
2014 | $13.73 | 0.14 | (0.03) | 0.11 | (0.23) | (0.28) | (0.51) | $13.33 | 0.91% | 0.98% | 0.94% | 75% | $138,527 | ||
Y Class | |||||||||||||||
2019(3) | $11.78 | 0.09 | 0.37 | 0.46 | (0.16) | (1.07) | (1.23) | $11.01 | 5.06% | 0.83%(4) | 1.48%(4) | 39% | $11,382 | ||
2018 | $13.75 | 0.15 | (1.30) | (1.15) | (0.18) | (0.64) | (0.82) | $11.78 | (8.95)% | 0.82% | 0.97% | 69% | $6,177 | ||
2017(6) | $11.48 | 0.09 | 2.18 | 2.27 | — | — | — | $13.75 | 19.77% | 0.82%(4) | 1.14%(4) | 57%(7) | $6 | ||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
A Class | |||||||||||||||
2019(3) | $11.91 | 0.05 | 0.40 | 0.45 | (0.10) | (1.07) | (1.17) | $11.19 | 4.77% | 1.43%(4) | 0.88%(4) | 39% | $70,172 | ||
2018 | $13.88 | 0.05 | (1.29) | (1.24) | (0.09) | (0.64) | (0.73) | $11.91 | (9.45)% | 1.42% | 0.37% | 69% | $64,784 | ||
2017 | $10.63 | 0.06 | 3.22 | 3.28 | (0.03) | — | (0.03) | $13.88 | 30.88% | 1.42% | 0.55% | 57% | $77,983 | ||
2016 | $12.32 | 0.06 | (1.09) | (1.03) | (0.04) | (0.62) | (0.66) | $10.63 | (8.73)% | 1.43% | 0.58% | 70% | $108,847 | ||
2015 | $13.48 | 0.07 | (0.37) | (0.30) | (0.06) | (0.80) | (0.86) | $12.32 | (2.13)% | 1.42% | 0.37% | 62% | $141,175 | ||
2014 | $13.86 | 0.07 | (0.01) | 0.06 | (0.16) | (0.28) | (0.44) | $13.48 | 0.49% | 1.43% | 0.49% | 75% | $301,164 | ||
C Class | |||||||||||||||
2019(3) | $11.49 | —(5) | 0.39 | 0.39 | (0.01) | (1.07) | (1.08) | $10.80 | 4.36% | 2.18%(4) | 0.13%(4) | 39% | $3,108 | ||
2018 | $13.42 | (0.04) | (1.25) | (1.29) | — | (0.64) | (0.64) | $11.49 | (10.12)% | 2.17% | (0.38)% | 69% | $4,268 | ||
2017 | $10.33 | (0.03) | 3.12 | 3.09 | — | — | — | $13.42 | 29.91% | 2.17% | (0.20)% | 57% | $6,743 | ||
2016 | $12.04 | (0.02) | (1.07) | (1.09) | — | (0.62) | (0.62) | $10.33 | (9.43)% | 2.18% | (0.17)% | 70% | $6,743 | ||
2015 | $13.22 | (0.05) | (0.33) | (0.38) | — | (0.80) | (0.80) | $12.04 | (2.81)% | 2.17% | (0.38)% | 62% | $10,402 | ||
2014 | $13.58 | (0.03) | (0.02) | (0.05) | (0.03) | (0.28) | (0.31) | $13.22 | (0.29)% | 2.18% | (0.26)% | 75% | $10,129 | ||
R Class | |||||||||||||||
2019(3) | $12.02 | 0.04 | 0.39 | 0.43 | (0.07) | (1.07) | (1.14) | $11.31 | 4.53% | 1.68%(4) | 0.63%(4) | 39% | $5,595 | ||
2018 | $14.00 | 0.02 | (1.30) | (1.28) | (0.06) | (0.64) | (0.70) | $12.02 | (9.68)% | 1.67% | 0.12% | 69% | $3,226 | ||
2017 | $10.72 | 0.03 | 3.25 | 3.28 | — | — | — | $14.00 | 30.60% | 1.67% | 0.30% | 57% | $3,609 | ||
2016 | $12.43 | 0.04 | (1.12) | (1.08) | (0.01) | (0.62) | (0.63) | $10.72 | (9.00)% | 1.68% | 0.33% | 70% | $3,090 | ||
2015 | $13.59 | 0.02 | (0.35) | (0.33) | (0.03) | (0.80) | (0.83) | $12.43 | (2.31)% | 1.67% | 0.12% | 62% | $3,313 | ||
2014 | $13.96 | 0.03 | (0.01) | 0.02 | (0.11) | (0.28) | (0.39) | $13.59 | 0.25% | 1.68% | 0.24% | 75% | $2,195 | ||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
R5 Class | |||||||||||||||
2019(3) | $11.77 | 0.07 | 0.39 | 0.46 | (0.15) | (1.07) | (1.22) | $11.01 | 4.98% | 0.98%(4) | 1.33%(4) | 39% | $6 | ||
2018 | $13.73 | 0.11 | (1.27) | (1.16) | (0.16) | (0.64) | (0.80) | $11.77 | (9.03)% | 0.97% | 0.82% | 69% | $5 | ||
2017(6) | $11.48 | 0.08 | 2.17 | 2.25 | — | — | — | $13.73 | 19.60% | 0.97%(4) | 0.99%(4) | 57%(7) | $6 | ||
R6 Class | |||||||||||||||
2019(3) | $11.77 | 0.08 | 0.38 | 0.46 | (0.16) | (1.07) | (1.23) | $11.00 | 5.05% | 0.83%(4) | 1.48%(4) | 39% | $35,900 | ||
2018 | $13.75 | 0.14 | (1.29) | (1.15) | (0.19) | (0.64) | (0.83) | $11.77 | (8.93)% | 0.82% | 0.97% | 69% | $38,315 | ||
2017 | $10.53 | 0.15 | 3.16 | 3.31 | (0.09) | — | (0.09) | $13.75 | 31.68% | 0.82% | 1.15% | 57% | $29,846 | ||
2016 | $12.20 | 0.14 | (1.10) | (0.96) | (0.09) | (0.62) | (0.71) | $10.53 | (8.19)% | 0.83% | 1.18% | 70% | $37,903 | ||
2015 | $13.34 | 0.11 | (0.33) | (0.22) | (0.12) | (0.80) | (0.92) | $12.20 | (1.50)% | 0.82% | 0.97% | 62% | $48,887 | ||
2014 | $13.74 | 0.13 | —(5) | 0.13 | (0.25) | (0.28) | (0.53) | $13.34 | 1.10% | 0.83% | 1.09% | 75% | $8,411 | ||
Notes to Financial Highlights | |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2019 (unaudited). |
(4) | Annualized. |
(5) | Per-share amount was less than $0.005. |
(6) | April 10, 2017 (commencement of sale) through November 30, 2017. |
(7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended November 30, 2017. |
See Notes to Financial Statements.
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.
23
Notes | ||||
24
| ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2019 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92630 1907 | ||
Semiannual Report | |
May 31, 2019 | |
International Opportunities Fund | |
Investor Class (AIOIX) | |
I Class (ACIOX) | |
A Class (AIVOX) | |
C Class (AIOCX) | |
R Class (AIORX) | |
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 |
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 |
Jonathan ThomasDear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2019. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, please visit our website, americancentury.com.
Trade Tensions Tempered Stock Gains
Sharp sell-offs opened and closed the six-month reporting period, with a rally in the middle. Mounting investors’ concerns about slowing global economic and earnings growth, U.S.-China trade tensions, falling oil prices and rising U.S. interest rates triggered the December 2018 sell-off. Despite signs that global growth was slowing, the Federal Reserve (Fed) raised interest rates in December, its fourth rate hike of the year. Investors feared this rate increase combined with the Fed’s bullish 2019 rate-hike outlook were too aggressive, further fueling the sell-off.
The new year brought a renewed sense of stability to the global financial markets and a new round of risk-on investing. Investors’ worst-case fears about growth and trade eased, and corporate earnings results were generally better than expected. Central banks in Europe and Japan continued to pursue dovish policies, and the Fed ended its rate-hike strategy amid moderating global growth and inflation. Additionally, equity valuations appeared attractive following the late-2018 stock market sell-off.
Investor sentiment took another U-turn in May. Heightened U.S.-China trade tensions and a new round of tariffs threatened global growth. Global oil prices plunged, contributing to the unrest. Then, late in the month, U.K. Prime Minister Theresa May’s resignation reignited fears of a no-deal Brexit. Against this backdrop, investors fled global stocks in favor of perceived safe-haven assets.
Despite the steep sell-offs in December and May, global stocks held onto modest gains for the entire six-month period. Non-U.S. stocks generally outperformed U.S. stocks. Among non-U.S. stocks, developed markets broadly outperformed emerging markets.
Looking ahead, we expect volatility to remain a formidable factor as investors react to global growth data, trade conflicts, 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,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2019 | |
Top Ten Holdings | % of net assets |
Rheinmetall AG | 1.7% |
Aveva Group plc | 1.7% |
Intermediate Capital Group plc | 1.7% |
Seven Group Holdings Ltd. | 1.5% |
WNS Holdings Ltd. ADR | 1.5% |
Globant SA | 1.4% |
Electrocomponents plc | 1.4% |
InterXion Holding NV | 1.3% |
Elekta AB, B Shares | 1.2% |
HomeServe plc | 1.2% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 98.6% |
Temporary Cash Investments | 1.0% |
Temporary Cash Investments - Securities Lending Collateral | 3.7% |
Other Assets and Liabilities | (3.3)% |
Investments by Country | % of net assets |
United Kingdom | 17.4% |
Japan | 17.3% |
Canada | 6.5% |
Australia | 5.9% |
Sweden | 5.1% |
China | 5.1% |
France | 4.9% |
Germany | 4.7% |
Netherlands | 4.2% |
Taiwan | 3.4% |
India | 3.4% |
Switzerland | 2.7% |
Italy | 2.5% |
Other Countries | 15.5% |
Cash and Equivalents* | 1.4% |
*Includes temporary cash investments, temporary cash investments - securities lending collateral and other assets and liabilities.
3
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 December 1, 2018 to May 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.
4
Beginning Account Value 12/1/18 | Ending Account Value 5/31/19 | Expenses Paid During Period(1) 12/1/18 - 5/31/19 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,013.30 | $7.48 | 1.49% |
I Class | $1,000 | $1,014.20 | $6.48 | 1.29% |
A Class | $1,000 | $1,011.90 | $8.73 | 1.74% |
C Class | $1,000 | $1,009.60 | $12.48 | 2.49% |
R Class | $1,000 | $1,011.70 | $9.98 | 1.99% |
Hypothetical | ||||
Investor Class | $1,000 | $1,017.50 | $7.49 | 1.49% |
I Class | $1,000 | $1,018.50 | $6.49 | 1.29% |
A Class | $1,000 | $1,016.26 | $8.75 | 1.74% |
C Class | $1,000 | $1,012.52 | $12.49 | 2.49% |
R Class | $1,000 | $1,015.01 | $10.00 | 1.99% |
(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. |
5
Schedule of Investments |
MAY 31, 2019 (UNAUDITED)
Shares | Value | |||
COMMON STOCKS — 98.6% | ||||
Argentina — 1.4% | ||||
Globant SA(1) | 83,271 | $ | 7,730,880 | |
Australia — 5.9% | ||||
Afterpay Touch Group Ltd.(1)(2) | 252,702 | 4,191,557 | ||
ALS Ltd. | 526,023 | 2,582,852 | ||
Breville Group Ltd. | 91,838 | 1,071,967 | ||
Cleanaway Waste Management Ltd. | 2,769,878 | 4,276,685 | ||
Northern Star Resources Ltd. | 539,520 | 3,667,028 | ||
Saracen Mineral Holdings Ltd.(1) | 1,081,856 | 2,422,890 | ||
Seven Group Holdings Ltd.(2) | 660,426 | 8,546,772 | ||
WiseTech Global Ltd.(2) | 361,481 | 6,067,426 | ||
32,827,177 | ||||
Belgium — 1.9% | ||||
Argenx SE(1)(2) | 33,954 | 4,201,224 | ||
Galapagos NV(1)(2) | 54,966 | 6,246,844 | ||
10,448,068 | ||||
Brazil — 1.8% | ||||
Azul SA ADR(1) | 108,934 | 3,242,965 | ||
Cia de Locacao das Americas | 275,500 | 3,123,637 | ||
Notre Dame Intermedica Participacoes SA | 334,400 | 3,494,030 | ||
9,860,632 | ||||
Canada — 6.5% | ||||
ATS Automation Tooling Systems, Inc.(1) | 226,640 | 3,414,021 | ||
Badger Daylighting Ltd. | 191,400 | 6,770,371 | ||
Canada Goose Holdings, Inc.(1) | 121,942 | 4,103,348 | ||
Descartes Systems Group, Inc. (The)(1) | 125,026 | 5,014,545 | ||
FirstService Corp. | 47,226 | 4,279,900 | ||
Gibson Energy, Inc. | 256,442 | 4,185,492 | ||
Hudbay Minerals, Inc. | 392,440 | 1,927,939 | ||
Kirkland Lake Gold Ltd. | 192,746 | 6,666,821 | ||
36,362,437 | ||||
China — 5.1% | ||||
A-Living Services Co. Ltd., H Shares(2) | 2,826,500 | 4,163,075 | ||
Baozun, Inc. ADR(1) | 111,119 | 4,359,198 | ||
Bosideng International Holdings Ltd. | 7,936,000 | 1,968,984 | ||
GDS Holdings Ltd. ADR(1)(2) | 175,450 | 5,700,371 | ||
Li Ning Co. Ltd.(1) | 4,120,000 | 6,801,417 | ||
Zhongsheng Group Holdings Ltd. | 2,139,000 | 5,372,891 | ||
28,365,936 | ||||
Finland — 1.8% | ||||
Konecranes Oyj | 188,308 | 6,449,638 | ||
6
Shares | Value | |||
Valmet Oyj | 164,972 | $ | 3,801,046 | |
10,250,684 | ||||
France — 4.9% | ||||
Alten SA | 27,759 | 2,813,334 | ||
Euronext NV | 46,411 | 3,299,339 | ||
Gaztransport Et Technigaz SA | 49,846 | 4,528,957 | ||
Korian SA | 162,762 | 6,483,634 | ||
Maisons du Monde SA | 33,642 | 672,700 | ||
Rubis SCA | 27,378 | 1,365,712 | ||
SOITEC(1) | 60,681 | 5,101,713 | ||
Solutions 30 SE(1) | 322,306 | 3,191,627 | ||
27,457,016 | ||||
Germany — 4.7% | ||||
Carl Zeiss Meditec AG | 33,031 | 3,106,076 | ||
Isra Vision AG | 88,996 | 3,238,706 | ||
MorphoSys AG(1) | 32,151 | 3,107,951 | ||
Rheinmetall AG | 90,570 | 9,638,651 | ||
Sixt SE | 44,578 | 4,523,405 | ||
Stroeer SE & Co. KGaA | 41,187 | 2,757,354 | ||
26,372,143 | ||||
Hong Kong — 1.1% | ||||
Ausnutria Dairy Corp. Ltd. | 920,000 | 1,688,727 | ||
Melco International Development Ltd. | 2,174,000 | 4,343,120 | ||
6,031,847 | ||||
India — 3.4% | ||||
Bata India Ltd. | 321,190 | 6,104,395 | ||
Jubilant Foodworks Ltd. | 237,279 | 4,465,728 | ||
WNS Holdings Ltd. ADR(1) | 149,572 | 8,277,314 | ||
18,847,437 | ||||
Indonesia — 0.8% | ||||
Bank Tabungan Pensiunan Nasional Syariah Tbk PT(1) | 24,041,700 | 4,800,390 | ||
Ireland — 0.5% | ||||
Dalata Hotel Group plc | 493,665 | 2,921,693 | ||
Israel — 0.8% | ||||
Kornit Digital Ltd.(1) | 150,398 | 4,266,791 | ||
Italy — 2.5% | ||||
Amplifon SpA | 272,721 | 6,043,944 | ||
FinecoBank Banca Fineco SpA | 517,233 | 5,343,664 | ||
Salvatore Ferragamo SpA | 124,907 | 2,597,349 | ||
13,984,957 | ||||
Japan — 17.3% | ||||
Adastria Co. Ltd. | 276,500 | 6,786,169 | ||
Ain Holdings, Inc. | 52,200 | 3,992,017 | ||
Anritsu Corp. | 182,400 | 2,868,965 | ||
Cosmos Pharmaceutical Corp. | 9,800 | 1,548,252 | ||
Fancl Corp. | 180,000 | 4,838,470 | ||
GMO Payment Gateway, Inc. | 58,000 | 3,873,115 | ||
7
Shares | Value | |||
KH Neochem Co. Ltd. | 201,500 | $ | 5,381,577 | |
Kobe Bussan Co. Ltd. | 140,600 | 6,419,422 | ||
Lasertec Corp. | 99,400 | 3,426,689 | ||
Modec, Inc. | 108,300 | 2,696,510 | ||
Nabtesco Corp. | 141,200 | 3,513,194 | ||
Nachi-Fujikoshi Corp. | 5,200 | 195,816 | ||
Nihon Kohden Corp. | 107,200 | 3,062,283 | ||
Nihon M&A Center, Inc. | 200,200 | 4,972,940 | ||
Orix JREIT, Inc. | 2,473 | 4,437,707 | ||
Pigeon Corp. | 68,800 | 2,585,369 | ||
Pressance Corp. | 300,200 | 3,771,715 | ||
Raksul, Inc.(1) | 72,000 | 3,082,432 | ||
Rengo Co. Ltd. | 499,100 | 3,964,599 | ||
Sawai Pharmaceutical Co. Ltd. | 29,100 | 1,498,182 | ||
SCREEN Holdings Co. Ltd. | 35,700 | 1,215,940 | ||
SCSK Corp. | 89,300 | 4,314,483 | ||
SHO-BOND Holdings Co. Ltd. | 64,500 | 4,458,854 | ||
Solasto Corp. | 172,000 | 1,512,188 | ||
Tadano Ltd. | 307,300 | 2,944,644 | ||
Tokyo Base Co. Ltd.(1) | 340,700 | 2,535,443 | ||
Trust Tech, Inc. | 175,100 | 5,031,137 | ||
Yume No Machi Souzou Iinkai Co. Ltd. | 120,900 | 1,489,388 | ||
96,417,500 | ||||
Netherlands — 4.2% | ||||
ASR Nederland NV | 142,075 | 5,379,163 | ||
BE Semiconductor Industries NV(2) | 104,103 | 2,340,232 | ||
IMCD NV | 36,146 | 2,938,752 | ||
InterXion Holding NV(1) | 96,052 | 7,079,993 | ||
Takeaway.com NV(1)(2) | 64,458 | 5,688,134 | ||
23,426,274 | ||||
Norway — 1.9% | ||||
Subsea 7 SA | 588,414 | 6,500,282 | ||
TGS NOPEC Geophysical Co. ASA | 164,656 | 4,119,470 | ||
10,619,752 | ||||
Poland — 0.5% | ||||
Dino Polska SA(1) | 88,968 | 2,881,710 | ||
Portugal — 0.7% | ||||
NOS SGPS SA | 665,378 | 4,197,188 | ||
South Korea — 1.2% | ||||
Fila Korea Ltd. | 101,002 | 6,581,598 | ||
Sweden — 5.1% | ||||
Elekta AB, B Shares | 532,221 | 6,917,442 | ||
Fabege AB | 341,507 | 5,124,031 | ||
Fastighets AB Balder, B Shares(1) | 22,024 | 715,529 | ||
Indutrade AB | 220,896 | 6,440,273 | ||
Loomis AB, B Shares | 107,169 | 3,468,695 | ||
8
Shares | Value | |||
Thule Group AB | 258,252 | $ | 5,887,219 | |
28,553,189 | ||||
Switzerland — 2.7% | ||||
Georg Fischer AG | 4,611 | 3,896,582 | ||
Siegfried Holding AG(1) | 8,044 | 2,874,051 | ||
Tecan Group AG | 23,857 | 5,720,018 | ||
VAT Group AG(1) | 25,646 | 2,762,254 | ||
15,252,905 | ||||
Taiwan — 3.4% | ||||
Airtac International Group | 303,000 | 3,099,400 | ||
ASMedia Technology, Inc. | 206,000 | 3,644,219 | ||
Chailease Holding Co. Ltd. | 1,120,220 | 4,106,594 | ||
Merida Industry Co. Ltd. | 995,000 | 5,394,436 | ||
Nien Made Enterprise Co. Ltd. | 373,000 | 2,702,970 | ||
18,947,619 | ||||
Turkey — 0.5% | ||||
Ulker Biskuvi Sanayi AS | 868,489 | 2,841,391 | ||
United Arab Emirates — 0.6% | ||||
Network International Holdings plc(1) | 481,414 | 3,383,969 | ||
United Kingdom — 17.4% | ||||
Abcam plc | 186,185 | 3,350,228 | ||
Avast plc | 927,208 | 3,625,228 | ||
Aveva Group plc | 205,121 | 9,599,266 | ||
B&M European Value Retail SA | 1,131,961 | 5,053,369 | ||
Burford Capital Ltd. | 203,135 | 4,263,615 | ||
Dechra Pharmaceuticals plc | 123,754 | 4,264,657 | ||
Electrocomponents plc | 988,045 | 7,578,010 | ||
Entertainment One Ltd. | 500,376 | 2,768,087 | ||
Ferrexpo plc | 1,033,916 | 3,015,610 | ||
Fevertree Drinks plc | 148,495 | 4,989,844 | ||
Grafton Group plc | 508,273 | 5,471,969 | ||
HomeServe plc | 448,081 | 6,826,406 | ||
Intermediate Capital Group plc | 559,570 | 9,310,575 | ||
Keywords Studios plc | 172,367 | 3,740,486 | ||
Moneysupermarket.com Group plc | 921,511 | 4,267,311 | ||
Nomad Foods Ltd.(1) | 284,884 | 6,045,238 | ||
Rentokil Initial plc | 622,027 | 2,945,209 | ||
Rotork plc | 1,150,128 | 4,181,464 | ||
SSP Group plc | 324,143 | 2,747,671 | ||
UNITE Group plc (The) | 240,084 | 2,874,637 | ||
96,918,880 | ||||
TOTAL COMMON STOCKS (Cost $517,999,488) | 550,550,063 | |||
9
Shares | Value | |||
TEMPORARY CASH INVESTMENTS — 1.0% | ||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.00%, 4/30/20 - 2/15/48, valued at $4,886,316), in a joint trading account at 2.30%, dated 5/31/19, due 6/3/19 (Delivery value $4,791,540) | $ | 4,790,622 | ||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.25%, 11/15/27, valued at $517,808), at 1.25%, dated 5/31/19, due 6/3/19 (Delivery value $507,053) | 507,000 | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 111,813 | 111,813 | ||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $5,409,435) | 5,409,435 | |||
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 3.7% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $20,634,292) | 20,634,292 | 20,634,292 | ||
TOTAL INVESTMENT SECURITIES — 103.3% (Cost $544,043,215) | 576,593,790 | |||
OTHER ASSETS AND LIABILITIES — (3.3)% | (18,524,333 | ) | ||
TOTAL NET ASSETS — 100.0% | $ | 558,069,457 | ||
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Industrials | 23.3 | % |
Information Technology | 19.3 | % |
Consumer Discretionary | 17.8 | % |
Health Care | 11.1 | % |
Consumer Staples | 6.8 | % |
Financials | 6.5 | % |
Materials | 4.8 | % |
Energy | 4.0 | % |
Real Estate | 3.1 | % |
Communication Services | 1.7 | % |
Utilities | 0.2 | % |
Cash and Equivalents* | 1.4 | % |
*Includes temporary cash investments, temporary cash investments - securities lending collateral and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
(1) | Non-income producing. |
(2) | Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $28,121,898. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers. |
(3) | Investment of cash collateral from securities on loan. At the period end, the aggregate market value of the collateral held by the fund was $29,568,129, which includes securities collateral of $8,933,837. |
See Notes to Financial Statements.
10
Statement of Assets and Liabilities |
MAY 31, 2019 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $523,408,923) | $ | 555,959,498 | |
Investment made with cash collateral received for securities on loan, at value (cost of $20,634,292) | 20,634,292 | ||
Total investment securities, at value (cost of $544,043,215) | 576,593,790 | ||
Foreign currency holdings, at value (cost of $199,797) | 200,295 | ||
Receivable for investments sold | 2,530,725 | ||
Receivable for capital shares sold | 72,540 | ||
Dividends and interest receivable | 1,361,767 | ||
Securities lending receivable | 10,648 | ||
Other assets | 160,019 | ||
580,929,784 | |||
Liabilities | |||
Payable for collateral received for securities on loan | 20,634,292 | ||
Payable for investments purchased | 1,402,674 | ||
Payable for capital shares redeemed | 140,774 | ||
Accrued management fees | 679,244 | ||
Distribution and service fees payable | 3,343 | ||
22,860,327 | |||
Net Assets | $ | 558,069,457 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 553,698,252 | |
Distributable earnings | 4,371,205 | ||
$ | 558,069,457 | ||
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $478,113,413 | 52,343,772 | $9.13 | |||
I Class, $0.01 Par Value | $70,837,135 | 7,673,261 | $9.23 | |||
A Class, $0.01 Par Value | $6,039,742 | 667,011 | $9.05* | |||
C Class, $0.01 Par Value | $1,461,689 | 168,462 | $8.68 | |||
R Class, $0.01 Par Value | $1,617,478 | 180,326 | $8.97 | |||
*Maximum offering price $9.60 (net asset value divided by 0.9425).
See Notes to Financial Statements.
11
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $436,658) | $ | 3,984,437 | |
Securities lending, net | 26,905 | ||
Interest | 18,062 | ||
4,029,404 | |||
Expenses: | |||
Management fees | 2,344,258 | ||
Distribution and service fees: | |||
A Class | 8,377 | ||
C Class | 6,771 | ||
R Class | 3,606 | ||
Directors' fees and expenses | 3,599 | ||
Other expenses | 15,639 | ||
2,382,250 | |||
Fees waived(1) | (10,913 | ) | |
2,371,337 | |||
Net investment income (loss) | 1,658,067 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | (23,711,442 | ) | |
Foreign currency translation transactions | (128,842 | ) | |
(23,840,284 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | 14,394,763 | ||
Translation of assets and liabilities in foreign currencies | 12,080 | ||
14,406,843 | |||
Net realized and unrealized gain (loss) | (9,433,441 | ) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (7,775,374 | ) |
(1) | Amount consists of $7,246, $3,101, $410, $75 and $81 for Investor Class, I Class, A Class, C Class and R Class, respectively. |
See Notes to Financial Statements.
12
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2018 | ||||||
Increase (Decrease) in Net Assets | May 31, 2019 | November 30, 2018 | ||||
Operations | ||||||
Net investment income (loss) | $ | 1,658,067 | $ | 200,958 | ||
Net realized gain (loss) | (23,840,284 | ) | 3,045,274 | |||
Change in net unrealized appreciation (depreciation) | 14,406,843 | (38,683,493 | ) | |||
Net increase (decrease) in net assets resulting from operations | (7,775,374 | ) | (35,437,261 | ) | ||
Distributions to Shareholders | ||||||
From earnings: | ||||||
Investor Class | (4,040,078 | ) | (15,648,809 | ) | ||
I Class | (1,741,335 | ) | (1,327,425 | ) | ||
A Class | (235,473 | ) | (1,166,105 | ) | ||
C Class | (37,726 | ) | (206,063 | ) | ||
R Class | (37,055 | ) | (86,554 | ) | ||
Decrease in net assets from distributions | (6,091,667 | ) | (18,434,956 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 376,828,632 | 58,663,854 | ||||
Net increase (decrease) in net assets | 362,961,591 | 4,791,637 | ||||
Net Assets | ||||||
Beginning of period | 195,107,866 | 190,316,229 | ||||
End of period | $ | 558,069,457 | $ | 195,107,866 | ||
See Notes to Financial Statements.
13
Notes to Financial Statements |
MAY 31, 2019 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. International Opportunities Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek capital growth.
The fund offers the Investor Class, I Class, A Class, C Class and R Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value 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.
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.
14
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
15
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 31, 2019.
Remaining Contractual Maturity of Agreements | ||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | ||||||||
Securities Lending Transactions(1) | ||||||||||||
Common Stocks | $ | 20,634,292 | — | — | — | $ | 20,634,292 | |||||
Gross amount of recognized liabilities for securities lending transactions | $ | 20,634,292 | ||||||||||
(1) | Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand. |
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that 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). From December 1, 2018 through March 21, 2019, the investment advisor agreed to waive 0.02% of the fund's management fee. Effective March 22, 2019, the investment advisor terminated the waiver and decreased the annual management fee by 0.20%.
16
The management fee schedule range and the effective annual management fee before and after waiver for each class for the period ended May 31, 2019 are as follows:
Management Fee Schedule Range* | Effective Annual Management Fee | ||
Before Waiver | After Waiver | ||
Investor Class | 1.200% to 1.550% | 1.49% | 1.48% |
I Class | 1.000% to 1.350% | 1.29% | 1.28% |
A Class | 1.200% to 1.550% | 1.49% | 1.48% |
C Class | 1.200% to 1.550% | 1.49% | 1.48% |
R Class | 1.200% to 1.550% | 1.49% | 1.48% |
*Prior to March 22, 2019, the management fee schedule range was 1.400% to 1.550% for Investor Class, A Class, C Class and R Class and 1.200% to 1.350% for 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 May 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 $702,532 and $266,476, respectively. The effect of interfund transactions on the Statement of Operations was $23,668 in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2019 were $257,654,481 and $276,783,406, respectively.
17
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2019 | Year ended November 30, 2018 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 340,000,000 | 180,000,000 | ||||||||
Sold | 1,165,016 | $ | 10,615,882 | 6,497,321 | $ | 74,175,520 | ||||
Issued in connection with reorganization (Note 9) | 40,955,922 | 383,355,227 | — | — | ||||||
Issued in reinvestment of distributions | 451,144 | 3,798,635 | 1,361,687 | 15,058,764 | ||||||
Redeemed | (4,276,192 | ) | (38,865,503 | ) | (7,504,994 | ) | (82,714,974 | ) | ||
38,295,890 | 358,904,241 | 354,014 | 6,519,310 | |||||||
I Class/Shares Authorized | 80,000,000 | 50,000,000 | ||||||||
Sold | 3,112,143 | 29,167,473 | 6,668,295 | 75,104,632 | ||||||
Issued in connection with reorganization (Note 9) | 421,079 | 3,982,794 | — | — | ||||||
Issued in reinvestment of distributions | 199,378 | 1,694,714 | 116,500 | 1,312,375 | ||||||
Redeemed | (1,699,877 | ) | (15,443,094 | ) | (2,016,478 | ) | (22,295,992 | ) | ||
2,032,723 | 19,401,887 | 4,768,317 | 54,121,015 | |||||||
A Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||
Sold | 121,692 | 1,113,876 | 438,179 | 4,956,079 | ||||||
Issued in connection with reorganization (Note 9) | 177,679 | 1,649,159 | — | — | ||||||
Issued in reinvestment of distributions | 27,875 | 233,036 | 105,230 | 1,155,579 | ||||||
Redeemed | (540,018 | ) | (4,907,746 | ) | (749,566 | ) | (8,232,465 | ) | ||
(212,772 | ) | (1,911,675 | ) | (206,157 | ) | (2,120,807 | ) | |||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 2,791 | 24,289 | 87,658 | 947,875 | ||||||
Issued in connection with reorganization (Note 9) | 51,598 | 459,815 | — | — | ||||||
Issued in reinvestment of distributions | 4,318 | 34,674 | 18,225 | 193,355 | ||||||
Redeemed | (49,475 | ) | (426,305 | ) | (160,969 | ) | (1,683,628 | ) | ||
9,232 | 92,473 | (55,086 | ) | (542,398 | ) | |||||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 39,399 | 351,997 | 70,738 | 783,772 | ||||||
Issued in connection with reorganization (Note 9) | 15,327 | 140,954 | — | — | ||||||
Issued in reinvestment of distributions | 4,470 | 37,055 | 7,945 | 86,554 | ||||||
Redeemed | (21,004 | ) | (188,300 | ) | (16,675 | ) | (183,592 | ) | ||
38,192 | 341,706 | 62,008 | 686,734 | |||||||
Net increase (decrease) | 40,163,265 | $ | 376,828,632 | 4,923,096 | $ | 58,663,854 | ||||
18
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | ||||||||
Argentina | $ | 7,730,880 | — | — | ||||
Brazil | 3,242,965 | $ | 6,617,667 | — | ||||
Canada | 4,103,348 | 32,259,089 | — | |||||
China | 10,059,569 | 18,306,367 | — | |||||
India | 8,277,314 | 10,570,123 | — | |||||
Israel | 4,266,791 | — | — | |||||
Netherlands | 7,079,993 | 16,346,281 | — | |||||
United Kingdom | 6,045,238 | 90,873,642 | — | |||||
Other Countries | — | 324,770,796 | — | |||||
Temporary Cash Investments | 111,813 | 5,297,622 | — | |||||
Temporary Cash Investments - Securities Lending Collateral | 20,634,292 | — | — | |||||
$ | 71,552,203 | $ | 505,041,587 | — | ||||
7. 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 in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
The fund’s investment process may result in high portfolio turnover, which could mean high transaction costs, affecting both performance and capital gains tax liabilities to investors.
19
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 549,779,687 | |
Gross tax appreciation of investments | $ | 49,316,169 | |
Gross tax depreciation of investments | (22,502,066 | ) | |
Net tax appreciation (depreciation) of investments | $ | 26,814,103 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2018, the fund had post-October capital loss deferrals of $(2,602,576), which represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
9. Reorganization
On December 4, 2018, the Board of Directors approved an agreement and plan of reorganization (the reorganization), whereby the net assets of International Discovery Fund, one fund in a series issued by the corporation, were transferred to International Opportunities Fund in exchange for shares of International Opportunities Fund. The purpose of the transaction was to combine two funds with substantially similar investment objectives and strategies. The financial statements and performance history of International Opportunities Fund survived after the reorganization. The reorganization was effective at the close of the NYSE on March 22, 2019.
The reorganization was accomplished by a tax free exchange of shares. On March 22, 2019, International Discovery Fund exchanged its shares for shares of International Opportunities Fund as follows:
Original Fund/Class | Shares Exchanged | New Fund/Class | Shares Received | ||
International Discovery Fund – Investor Class | 28,522,874 | International Opportunities Fund – Investor Class | 40,955,922 | ||
International Discovery Fund – I Class | 292,253 | International Opportunities Fund – I Class | 421,079 | ||
International Discovery Fund – A Class | 126,350 | International Opportunities Fund – A Class | 177,679 | ||
International Discovery Fund – C Class | 36,343 | International Opportunities Fund – C Class | 51,598 | ||
International Discovery Fund – R Class | 10,698 | International Opportunities Fund – R Class | 15,327 | ||
The net assets of International Discovery Fund and International Opportunities Fund immediately before the reorganization were $389,587,949 and $193,535,172, respectively. International Discovery Fund's unrealized appreciation of $8,083,173 was combined with that of International Opportunities Fund. Immediately after the reorganization, the combined net assets were $583,123,121.
Assuming the reorganization had been completed on December 1, 2018, the beginning of the annual reporting period, the pro forma results of operations for the period ended May 31, 2019 are as follows:
Net investment income (loss) | $ | 611,688 | |
Net realized and unrealized gain (loss) | 11,982,563 | ||
Net increase (decrease) in net assets resulting from operations | $ | 12,594,251 | |
Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of International Discovery Fund that have been included in the fund’s Statement of Operations since March 22, 2019.
20
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||||||
2019(3) | $9.33 | 0.01 | 0.09 | 0.10 | (0.05) | (0.25) | (0.30) | $9.13 | 1.33% | 1.49%(4) | 1.50%(4) | 0.95%(4) | 0.94%(4) | 74% | $478,113 | ||
2018 | $11.94 | 0.01 | (1.51) | (1.50) | (0.06) | (1.05) | (1.11) | $9.33 | (13.98)% | 1.48% | 1.62% | 0.07% | (0.07)% | 140% | $131,043 | ||
2017 | $8.49 | (0.01) | 3.46 | 3.45 | —(5) | — | —(5) | $11.94 | 40.69% | 1.53% | 1.73% | (0.11)% | (0.31)% | 124% | $163,540 | ||
2016 | $9.08 | (0.01) | (0.36) | (0.37) | (0.08) | (0.14) | (0.22) | $8.49 | (4.14)% | 1.54% | 1.74% | (0.07)% | (0.27)% | 130% | $108,184 | ||
2015 | $8.92 | (0.03) | 0.58 | 0.55 | (0.02) | (0.37) | (0.39) | $9.08 | 6.67% | 1.51% | 1.71% | (0.33)% | (0.53)% | 152% | $128,450 | ||
2014 | $9.20 | 0.01 | (0.26) | (0.25) | (0.03) | — | (0.03) | $8.92 | (2.77)% | 1.55% | 1.75% | 0.11% | (0.09)% | 128% | $123,835 | ||
I Class | |||||||||||||||||
2019(3) | $9.44 | 0.03 | 0.08 | 0.11 | (0.07) | (0.25) | (0.32) | $9.23 | 1.42% | 1.29%(4) | 1.30%(4) | 1.15%(4) | 1.14%(4) | 74% | $70,837 | ||
2018 | $12.07 | 0.04 | (1.54) | (1.50) | (0.08) | (1.05) | (1.13) | $9.44 | (13.81)% | 1.28% | 1.42% | 0.27% | 0.13% | 140% | $53,224 | ||
2017 | $8.58 | 0.02 | 3.49 | 3.51 | (0.02) | — | (0.02) | $12.07 | 41.01% | 1.33% | 1.53% | 0.09% | (0.11)% | 124% | $10,529 | ||
2016 | $9.18 | 0.01 | (0.38) | (0.37) | (0.09) | (0.14) | (0.23) | $8.58 | (4.05)% | 1.34% | 1.54% | 0.13% | (0.07)% | 130% | $6,674 | ||
2015 | $9.02 | (0.01) | 0.58 | 0.57 | (0.04) | (0.37) | (0.41) | $9.18 | 6.82% | 1.31% | 1.51% | (0.13)% | (0.33)% | 152% | $6,685 | ||
2014 | $9.29 | 0.03 | (0.27) | (0.24) | (0.03) | — | (0.03) | $9.02 | (2.58)% | 1.35% | 1.55% | 0.31% | 0.11% | 128% | $4,491 | ||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
A Class | |||||||||||||||||
2019(3) | $9.24 | —(5) | 0.09 | 0.09 | (0.03) | (0.25) | (0.28) | $9.05 | 1.19% | 1.74%(4) | 1.75%(4) | 0.70%(4) | 0.69%(4) | 74% | $6,040 | ||
2018 | $11.84 | (0.02) | (1.50) | (1.52) | (0.03) | (1.05) | (1.08) | $9.24 | (14.25)% | 1.73% | 1.87% | (0.18)% | (0.32)% | 140% | $8,131 | ||
2017 | $8.43 | (0.03) | 3.44 | 3.41 | — | — | — | $11.84 | 40.45% | 1.78% | 1.98% | (0.36)% | (0.56)% | 124% | $12,855 | ||
2016 | $9.03 | (0.03) | (0.37) | (0.40) | (0.06) | (0.14) | (0.20) | $8.43 | (4.47)% | 1.79% | 1.99% | (0.32)% | (0.52)% | 130% | $14,156 | ||
2015 | $8.88 | (0.05) | 0.58 | 0.53 | (0.01) | (0.37) | (0.38) | $9.03 | 6.48% | 1.76% | 1.96% | (0.58)% | (0.78)% | 152% | $19,796 | ||
2014 | $9.18 | (0.01) | (0.27) | (0.28) | (0.02) | — | (0.02) | $8.88 | (3.06)% | 1.80% | 2.00% | (0.14)% | (0.34)% | 128% | $14,683 | ||
C Class | |||||||||||||||||
2019(3) | $8.86 | (0.03) | 0.10 | 0.07 | — | (0.25) | (0.25) | $8.68 | 0.96% | 2.49%(4) | 2.50%(4) | (0.05)%(4) | (0.06)%(4) | 74% | $1,462 | ||
2018 | $11.44 | (0.10) | (1.43) | (1.53) | — | (1.05) | (1.05) | $8.86 | (14.93)% | 2.48% | 2.62% | (0.93)% | (1.07)% | 140% | $1,411 | ||
2017 | $8.21 | (0.11) | 3.34 | 3.23 | — | — | — | $11.44 | 39.46% | 2.53% | 2.73% | (1.11)% | (1.31)% | 124% | $2,453 | ||
2016 | $8.81 | (0.09) | (0.36) | (0.45) | (0.01) | (0.14) | (0.15) | $8.21 | (5.17)% | 2.54% | 2.74% | (1.07)% | (1.27)% | 130% | $1,579 | ||
2015 | $8.73 | (0.12) | 0.57 | 0.45 | —(5) | (0.37) | (0.37) | $8.81 | 5.59% | 2.51% | 2.71% | (1.33)% | (1.53)% | 152% | $1,479 | ||
2014 | $9.07 | (0.08) | (0.26) | (0.34) | — | — | — | $8.73 | (3.75)% | 2.55% | 2.75% | (0.89)% | (1.09)% | 128% | $713 | ||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
R Class | |||||||||||||||||
2019(3) | $9.14 | (0.01) | 0.10 | 0.09 | (0.01) | (0.25) | (0.26) | $8.97 | 1.17% | 1.99%(4) | 2.00%(4) | 0.45%(4) | 0.44%(4) | 74% | $1,617 | ||
2018 | $11.72 | (0.05) | (1.48) | (1.53) | —(5) | (1.05) | (1.05) | $9.14 | (14.46)% | 1.98% | 2.12% | (0.43)% | (0.57)% | 140% | $1,300 | ||
2017 | $8.37 | (0.06) | 3.41 | 3.35 | — | — | — | $11.72 | 40.02% | 2.03% | 2.23% | (0.61)% | (0.81)% | 124% | $939 | ||
2016 | $8.97 | (0.05) | (0.37) | (0.42) | (0.04) | (0.14) | (0.18) | $8.37 | (4.69)% | 2.04% | 2.24% | (0.57)% | (0.77)% | 130% | $658 | ||
2015 | $8.85 | (0.07) | 0.57 | 0.50 | (0.01) | (0.37) | (0.38) | $8.97 | 6.09% | 2.01% | 2.21% | (0.83)% | (1.03)% | 152% | $654 | ||
2014 | $9.15 | (0.04) | (0.25) | (0.29) | (0.01) | — | (0.01) | $8.85 | (3.15)% | 2.05% | 2.25% | (0.39)% | (0.59)% | 128% | $583 | ||
Notes to Financial Highlights | |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2019 (unaudited). |
(4) | Annualized. |
(5) | Per-share amount was less than $0.005. |
See Notes to Financial Statements.
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
| ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2019 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92635 1907 | ||
Semiannual Report | |
May 31, 2019 | |
International Value Fund | |
Investor Class (ACEVX) | |
I Class (ACVUX) | |
A Class (MEQAX) | |
C Class (ACCOX) | |
R Class (ACVRX) | |
R6 Class (ACVDX) | |
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 |
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 |
Jonathan ThomasDear Investor:
Thank you for reviewing this semiannual report for the period ended May 31, 2019. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on fund performance, plus other investment insights, please visit our website, americancentury.com.
Trade Tensions Tempered Stock Gains
Sharp sell-offs opened and closed the six-month reporting period, with a rally in the middle. Mounting investors’ concerns about slowing global economic and earnings growth, U.S.-China trade tensions, falling oil prices and rising U.S. interest rates triggered the December 2018 sell-off. Despite signs that global growth was slowing, the Federal Reserve (Fed) raised interest rates in December, its fourth rate hike of the year. Investors feared this rate increase combined with the Fed’s bullish 2019 rate-hike outlook were too aggressive, further fueling the sell-off.
The new year brought a renewed sense of stability to the global financial markets and a new round of risk-on investing. Investors’ worst-case fears about growth and trade eased, and corporate earnings results were generally better than expected. Central banks in Europe and Japan continued to pursue dovish policies, and the Fed ended its rate-hike strategy amid moderating global growth and inflation. Additionally, equity valuations appeared attractive following the late-2018 stock market sell-off.
Investor sentiment took another U-turn in May. Heightened U.S.-China trade tensions and a new round of tariffs threatened global growth. Global oil prices plunged, contributing to the unrest. Then, late in the month, U.K. Prime Minister Theresa May’s resignation reignited fears of a no-deal Brexit. Against this backdrop, investors fled global stocks in favor of perceived safe-haven assets.
Despite the steep sell-offs in December and May, global stocks held onto modest gains for the entire six-month period. Non-U.S. stocks generally outperformed U.S. stocks. Among non-U.S. stocks, developed markets broadly outperformed emerging markets.
Looking ahead, we expect volatility to remain a formidable factor as investors react to global growth data, trade conflicts, 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,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
MAY 31, 2019 | |
Top Ten Holdings | % of net assets |
Royal Dutch Shell plc, B Shares | 4.2% |
HSBC Holdings plc | 2.7% |
GlaxoSmithKline plc | 2.2% |
Rio Tinto plc | 2.1% |
BHP Group plc | 1.9% |
Australia & New Zealand Banking Group Ltd. | 1.8% |
Allianz SE | 1.7% |
Zurich Insurance Group AG | 1.6% |
Toyota Motor Corp. | 1.5% |
Novartis AG | 1.5% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 96.3% |
Exchange-Traded Funds | 2.0% |
Rights | —* |
Total Equity Exposure | 98.3% |
Temporary Cash Investments | 0.7% |
Temporary Cash Investments - Securities Lending Collateral | 1.6% |
Other Assets and Liabilities | (0.6)% |
*Category is less than 0.05% of total net assets. | |
Investments by Country | % of net assets |
United Kingdom | 20.9% |
Japan | 19.5% |
France | 10.1% |
Switzerland | 6.6% |
Germany | 6.0% |
Australia | 4.7% |
Spain | 4.4% |
Hong Kong | 4.3% |
Netherlands | 3.4% |
Italy | 3.2% |
Singapore | 2.9% |
Norway | 2.3% |
Other Countries | 8.0% |
Exchange-Traded Funds* | 2.0% |
Cash and Equivalents** | 1.7% |
*Category may increase exposure to the countries indicated. The Schedule of Investments provides additional information on the fund's portfolio holdings.
**Includes temporary cash investments, temporary cash investments - securities lending collateral and other assets and liabilities.
3
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 December 1, 2018 to May 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.
4
Beginning Account Value 12/1/18 | Ending Account Value 5/31/19 | Expenses Paid During Period(1) 12/1/18 - 5/31/19 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $984.90 | $6.73 | 1.36% |
I Class | $1,000 | $986.00 | $5.74 | 1.16% |
A Class | $1,000 | $983.30 | $7.96 | 1.61% |
C Class | $1,000 | $979.30 | $11.65 | 2.36% |
R Class | $1,000 | $982.80 | $9.19 | 1.86% |
R6 Class | $1,000 | $986.60 | $5.00 | 1.01% |
Hypothetical | ||||
Investor Class | $1,000 | $1,018.15 | $6.84 | 1.36% |
I Class | $1,000 | $1,019.15 | $5.84 | 1.16% |
A Class | $1,000 | $1,016.90 | $8.10 | 1.61% |
C Class | $1,000 | $1,013.16 | $11.85 | 2.36% |
R Class | $1,000 | $1,015.66 | $9.35 | 1.86% |
R6 Class | $1,000 | $1,019.90 | $5.09 | 1.01% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 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. |
5
Schedule of Investments |
MAY 31, 2019 (UNAUDITED)
Shares | Value | |||
COMMON STOCKS — 96.3% | ||||
Australia — 4.7% | ||||
Australia & New Zealand Banking Group Ltd. | 35,849 | $ | 691,817 | |
CIMIC Group Ltd. | 5,629 | 175,886 | ||
Commonwealth Bank of Australia | 5,000 | 271,669 | ||
Fortescue Metals Group Ltd. | 10,472 | 58,043 | ||
JB Hi-Fi Ltd.(1) | 4,135 | 80,374 | ||
Santos Ltd. | 9,726 | 45,330 | ||
Super Retail Group Ltd.(1) | 23,343 | 149,495 | ||
Telstra Corp. Ltd. | 77,079 | 195,052 | ||
Westpac Banking Corp. | 8,279 | 157,630 | ||
1,825,296 | ||||
Belgium — 0.4% | ||||
KBC Group NV | 1,171 | 76,914 | ||
Solvay SA | 1,000 | 93,546 | ||
170,460 | ||||
Brazil — 0.9% | ||||
Cia Siderurgica Nacional SA ADR | 17,600 | 73,392 | ||
JBS SA | 21,800 | 120,835 | ||
Petroleo Brasileiro SA ADR | 8,700 | 112,926 | ||
Vale SA ADR | 2,800 | 34,916 | ||
342,069 | ||||
China — 1.5% | ||||
China Construction Bank Corp., H Shares | 90,000 | 71,015 | ||
CITIC Ltd. | 119,000 | 161,260 | ||
Industrial & Commercial Bank of China Ltd., H Shares | 163,000 | 116,176 | ||
Lenovo Group Ltd. | 142,000 | 98,395 | ||
Weichai Power Co. Ltd., H Shares | 97,000 | 146,978 | ||
593,824 | ||||
Denmark — 0.4% | ||||
Carlsberg A/S, B Shares | 1,200 | 157,491 | ||
France — 10.1% | ||||
Air France-KLM(2) | 15,300 | 132,227 | ||
AXA SA | 4,750 | 116,840 | ||
BNP Paribas SA(1) | 8,647 | 394,114 | ||
Carrefour SA | 14,872 | 279,355 | ||
CNP Assurances | 15,572 | 333,625 | ||
Dassault Systemes SE | 800 | 118,561 | ||
Eiffage SA | 1,165 | 111,262 | ||
Engie SA(1) | 9,442 | 131,652 | ||
Kering SA | 456 | 236,867 | ||
L'Oreal SA | 1,030 | 276,423 | ||
Lagardere SCA | 10,801 | 262,401 | ||
6
Shares | Value | |||
LVMH Moet Hennessy Louis Vuitton SE | 520 | $ | 197,022 | |
Metropole Television SA | 2,358 | 42,410 | ||
Orange SA | 3,844 | 60,082 | ||
Peugeot SA | 16,227 | 361,662 | ||
Sanofi | 3,254 | 262,790 | ||
TOTAL SA | 10,961 | 566,984 | ||
3,884,277 | ||||
Germany — 6.0% | ||||
Allianz SE | 2,962 | 657,902 | ||
BASF SE | 1,750 | 115,553 | ||
Bayer AG | 1,746 | 102,985 | ||
Daimler AG | 1,900 | 98,575 | ||
Deutsche Telekom AG | 26,028 | 439,317 | ||
Dialog Semiconductor plc(2) | 2,800 | 89,036 | ||
Hamburger Hafen und Logistik AG | 2,198 | 52,197 | ||
HOCHTIEF AG | 600 | 71,254 | ||
HUGO BOSS AG | 408 | 23,740 | ||
Merck KGaA | 550 | 53,120 | ||
MTU Aero Engines AG | 690 | 149,195 | ||
RTL Group SA | 988 | 47,175 | ||
RWE AG | 11,104 | 277,363 | ||
Siltronic AG | 1,650 | 113,233 | ||
2,290,645 | ||||
Hong Kong — 4.3% | ||||
BOC Hong Kong Holdings Ltd. | 26,500 | 101,521 | ||
Champion REIT | 42,000 | 34,149 | ||
CK Asset Holdings Ltd. | 10,000 | 72,159 | ||
CLP Holdings Ltd. | 30,500 | 344,813 | ||
Hong Kong Exchanges & Clearing Ltd. | 2,000 | 63,432 | ||
Kerry Properties Ltd. | 18,000 | 68,223 | ||
Link REIT | 29,500 | 353,651 | ||
Sands China Ltd. | 55,600 | 251,105 | ||
Swire Properties Ltd. | 21,000 | 86,380 | ||
Wharf Holdings Ltd. (The) | 105,000 | 267,997 | ||
1,643,430 | ||||
India — 0.4% | ||||
Indiabulls Housing Finance Ltd. | 4,485 | 50,618 | ||
Tata Power Co. Ltd. (The) | 86,624 | 85,638 | ||
136,256 | ||||
Ireland — 0.2% | ||||
Bank of Ireland Group plc | 15,940 | 84,936 | ||
Israel — 1.0% | ||||
Bank Leumi Le-Israel BM | 12,240 | 82,089 | ||
Mizrahi Tefahot Bank Ltd.(2) | 3,510 | 76,732 | ||
Nice Ltd.(2) | 600 | 83,714 | ||
Wix.com Ltd.(2) | 900 | 123,606 | ||
366,141 | ||||
7
Shares | Value | |||
Italy — 3.2% | ||||
Eni SpA | 31,553 | $ | 476,007 | |
EXOR NV | 5,200 | 325,907 | ||
Fiat Chrysler Automobiles NV | 11,200 | 142,619 | ||
Unipol Gruppo SpA | 40,400 | 185,951 | ||
UnipolSai Assicurazioni SpA(1) | 40,900 | 99,544 | ||
1,230,028 | ||||
Japan — 19.5% | ||||
Astellas Pharma, Inc. | 17,700 | 236,750 | ||
Bandai Namco Holdings, Inc. | 1,000 | 49,108 | ||
Brother Industries Ltd. | 12,600 | 213,757 | ||
Chugai Pharmaceutical Co. Ltd. | 2,000 | 133,281 | ||
Daiwa Securities Group, Inc. | 28,800 | 125,761 | ||
Eisai Co. Ltd. | 2,500 | 146,630 | ||
FANUC Corp. | 1,400 | 236,003 | ||
Honda Motor Co. Ltd. | 7,600 | 187,332 | ||
Hoya Corp. | 3,000 | 207,622 | ||
Isuzu Motors Ltd. | 22,300 | 243,411 | ||
KDDI Corp. | 16,400 | 421,234 | ||
Kirin Holdings Co. Ltd. | 2,800 | 60,731 | ||
Marubeni Corp. | 34,700 | 217,798 | ||
Mazda Motor Corp. | 8,000 | 77,630 | ||
Mebuki Financial Group, Inc. | 87,200 | 218,863 | ||
Mitsubishi Chemical Holdings Corp. | 33,700 | 220,358 | ||
Mitsubishi Corp. | 5,800 | 150,721 | ||
Mitsubishi UFJ Financial Group, Inc. | 57,400 | 264,842 | ||
Mitsui & Co. Ltd. | 7,200 | 110,787 | ||
Mizuho Financial Group, Inc. | 104,600 | 147,574 | ||
Nikon Corp. | 11,700 | 159,782 | ||
Nippon Telegraph & Telephone Corp. | 3,800 | 170,049 | ||
NTT DOCOMO, Inc. | 11,600 | 266,115 | ||
Oji Holdings Corp. | 10,000 | 51,464 | ||
ORIX Corp. | 20,800 | 292,902 | ||
Sawai Pharmaceutical Co. Ltd. | 2,500 | 128,710 | ||
Shionogi & Co. Ltd. | 3,000 | 163,378 | ||
Shizuoka Bank Ltd. (The) | 38,100 | 299,597 | ||
Sony Corp. | 3,200 | 153,917 | ||
Sumitomo Chemical Co. Ltd. | 24,500 | 105,250 | ||
Sumitomo Mitsui Financial Group, Inc. | 7,500 | 260,760 | ||
Suzuken Co. Ltd. | 2,200 | 134,994 | ||
Suzuki Motor Corp. | 7,200 | 342,952 | ||
Takeda Pharmaceutical Co., Ltd. | 8,600 | 289,914 | ||
Teijin Ltd. | 8,900 | 144,750 | ||
Tokyo Electric Power Co. Holdings, Inc.(2) | 32,700 | 167,799 | ||
Toyota Motor Corp. | 9,800 | 577,281 | ||
Trend Micro, Inc. | 2,000 | 89,772 | ||
8
Shares | Value | |||
TS Tech Co. Ltd. | 1,600 | $ | 39,016 | |
7,508,595 | ||||
Netherlands — 3.4% | ||||
ABN AMRO Group NV CVA | 15,390 | 324,804 | ||
ASR Nederland NV | 6,987 | 264,538 | ||
Coca-Cola European Partners plc | 5,497 | 304,534 | ||
ING Groep NV | 6,962 | 75,158 | ||
Koninklijke Ahold Delhaize NV(1) | 3,937 | 88,470 | ||
NN Group NV | 6,236 | 236,541 | ||
1,294,045 | ||||
New Zealand — 0.8% | ||||
a2 Milk Co. Ltd.(2) | 15,991 | 164,912 | ||
Spark New Zealand Ltd. | 57,422 | 143,087 | ||
307,999 | ||||
Norway — 2.3% | ||||
Aker BP ASA | 1,300 | 34,919 | ||
Equinor ASA | 21,725 | 415,209 | ||
Salmar ASA | 2,331 | 106,504 | ||
Telenor ASA | 15,273 | 313,825 | ||
870,457 | ||||
Portugal — 0.7% | ||||
EDP - Energias de Portugal SA | 78,979 | 286,825 | ||
Singapore — 2.9% | ||||
CapitaLand Commercial Trust | 55,000 | 77,276 | ||
ComfortDelGro Corp. Ltd. | 146,800 | 262,905 | ||
Oversea-Chinese Banking Corp. Ltd. | 38,700 | 297,834 | ||
Singapore Technologies Engineering Ltd. | 38,600 | 109,873 | ||
United Overseas Bank Ltd. | 20,500 | 350,470 | ||
1,098,358 | ||||
South Korea — 1.2% | ||||
Daelim Industrial Co. Ltd. | 1,471 | 127,642 | ||
Hanwha Corp. | 2,339 | 50,095 | ||
Samsung Electronics Co. Ltd. | 5,133 | 182,208 | ||
Shinhan Financial Group Co. Ltd. | 2,188 | 81,678 | ||
441,623 | ||||
Spain — 4.4% | ||||
Banco Bilbao Vizcaya Argentaria SA | 61,533 | 333,864 | ||
Banco Santander SA | 111,194 | 489,800 | ||
Iberdrola SA | 37,200 | 346,052 | ||
Mapfre SA | 90,093 | 264,423 | ||
Telefonica SA | 32,300 | 258,619 | ||
1,692,758 | ||||
Sweden — 0.4% | ||||
Lundin Petroleum AB | 5,763 | 156,382 | ||
Switzerland — 6.6% | ||||
Logitech International SA | 6,286 | 228,975 | ||
Nestle SA | 3,114 | 309,275 | ||
9
Shares | Value | |||
Novartis AG | 6,683 | $ | 573,956 | |
Roche Holding AG | 1,340 | 351,644 | ||
Swisscom AG | 734 | 351,284 | ||
UBS Group AG(2) | 9,016 | 103,722 | ||
Zurich Insurance Group AG | 1,929 | 625,009 | ||
2,543,865 | ||||
Taiwan — 0.1% | ||||
Taiwan High Speed Rail Corp. | 39,000 | 53,609 | ||
United Kingdom — 20.9% | ||||
3i Group plc | 28,554 | 378,742 | ||
Aggreko plc | 15,050 | 147,525 | ||
Anglo American plc | 18,498 | 443,897 | ||
BHP Group plc | 32,623 | 735,092 | ||
BP plc | 72,841 | 494,015 | ||
British American Tobacco plc | 5,028 | 174,541 | ||
Evraz plc | 37,410 | 278,604 | ||
GlaxoSmithKline plc | 43,956 | 848,784 | ||
HSBC Holdings plc | 125,123 | 1,020,815 | ||
Legal & General Group plc | 124,595 | 404,748 | ||
Lloyds Banking Group plc | 180,478 | 130,275 | ||
Marks & Spencer Group plc | 28,386 | 80,368 | ||
Rio Tinto plc | 14,113 | 810,782 | ||
Royal Bank of Scotland Group plc | 56,400 | 152,198 | ||
Royal Dutch Shell plc, B Shares | 51,568 | 1,607,955 | ||
Sage Group plc (The) | 12,700 | 120,095 | ||
Segro plc | 4,174 | 36,786 | ||
Tate & Lyle plc | 14,394 | 131,517 | ||
Vodafone Group plc | 19,226 | 31,373 | ||
8,028,112 | ||||
TOTAL COMMON STOCKS (Cost $38,643,989) | 37,007,481 | |||
EXCHANGE-TRADED FUNDS — 2.0% | ||||
iShares China Large-Cap ETF | 3,600 | 145,332 | ||
iShares MSCI EAFE ETF | 5,984 | 379,386 | ||
iShares MSCI Japan ETF | 4,550 | 239,876 | ||
TOTAL EXCHANGE-TRADED FUNDS (Cost $796,748) | 764,594 | |||
RIGHTS† | ||||
United Kingdom† | ||||
Marks & Spencer Group plc(2) (Cost $—) | 5,677 | 2,799 | ||
10
Shares | Value | |||
TEMPORARY CASH INVESTMENTS — 0.7% | ||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.00%, 4/30/20 - 2/15/48, valued at $249,242), in a joint trading account at 2.30%, dated 5/31/19, due 6/3/19 (Delivery value $244,408) | $ | 244,361 | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 26,032 | 26,032 | ||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $270,393) | 270,393 | |||
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 1.6% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $627,410) | 627,410 | 627,410 | ||
TOTAL INVESTMENT SECURITIES — 100.6% (Cost $40,338,540) | 38,672,677 | |||
OTHER ASSETS AND LIABILITIES — (0.6)% | (225,655 | ) | ||
TOTAL NET ASSETS — 100.0% | $ | 38,447,022 | ||
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Financials | 29.1 | % |
Energy | 10.2 | % |
Health Care | 9.3 | % |
Consumer Discretionary | 8.9 | % |
Materials | 8.2 | % |
Communication Services | 7.9 | % |
Industrials | 6.6 | % |
Consumer Staples | 5.6 | % |
Utilities | 4.1 | % |
Information Technology | 3.8 | % |
Real Estate | 2.6 | % |
Exchange-Traded Funds | 2.0 | % |
Cash and Equivalents* | 1.7 | % |
*Includes temporary cash investments, temporary cash investments - securities lending collateral and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
CVA | - | Certificaten Van Aandelen |
† | Category is less than 0.05% of total net assets. |
(1) | Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $840,401. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers. |
(2) | Non-income producing. |
(3) | Investment of cash collateral from securities on loan. At the period end, the aggregate market value of the collateral held by the fund was $886,036, which includes securities collateral of $258,626. |
See Notes to Financial Statements.
11
Statement of Assets and Liabilities |
MAY 31, 2019 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $39,711,130) | $ | 38,045,267 | |
Investment made with cash collateral received for securities on loan, at value (cost of $627,410) | 627,410 | ||
Total investment securities, at value (cost of $40,338,540) | 38,672,677 | ||
Foreign currency holdings, at value (cost of $27,065) | 27,149 | ||
Receivable for investments sold | 17,532 | ||
Receivable for capital shares sold | 64,391 | ||
Dividends and interest receivable | 460,317 | ||
Securities lending receivable | 2,042 | ||
39,244,108 | |||
Liabilities | |||
Payable for collateral received for securities on loan | 627,410 | ||
Payable for investments purchased | 112,742 | ||
Payable for capital shares redeemed | 14,603 | ||
Accrued management fees | 39,138 | ||
Distribution and service fees payable | 3,193 | ||
797,086 | |||
Net Assets | $ | 38,447,022 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 45,819,241 | |
Distributable earnings | (7,372,219 | ) | |
$ | 38,447,022 | ||
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $9,798,543 | 1,358,470 | $7.21 | |||
I Class, $0.01 Par Value | $11,576,010 | 1,606,137 | $7.21 | |||
A Class, $0.01 Par Value | $6,942,410 | 957,930 | $7.25* | |||
C Class, $0.01 Par Value | $1,604,552 | 223,128 | $7.19 | |||
R Class, $0.01 Par Value | $514,392 | 71,337 | $7.21 | |||
R6 Class, $0.01 Par Value | $8,011,115 | 1,111,320 | $7.21 | |||
*Maximum offering price $7.69 (net asset value divided by 0.9425).
See Notes to Financial Statements.
12
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $90,217) | $ | 1,114,625 | |
Interest | 4,394 | ||
Securities lending, net | 2,916 | ||
1,121,935 | |||
Expenses: | |||
Management fees | 235,340 | ||
Distribution and service fees: | |||
A Class | 9,106 | ||
C Class | 9,240 | ||
R Class | 1,505 | ||
Directors' fees and expenses | 567 | ||
Other expenses | 13,747 | ||
269,505 | |||
Net investment income (loss) | 852,430 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | (2,373,702 | ) | |
Foreign currency translation transactions | (5,865 | ) | |
(2,379,567 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | 715,095 | ||
Translation of assets and liabilities in foreign currencies | 1,522 | ||
716,617 | |||
Net realized and unrealized gain (loss) | (1,662,950 | ) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (810,520 | ) |
See Notes to Financial Statements.
13
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2018 | ||||||
Increase (Decrease) in Net Assets | May 31, 2019 | November 30, 2018 | ||||
Operations | ||||||
Net investment income (loss) | $ | 852,430 | $ | 2,031,756 | ||
Net realized gain (loss) | (2,379,567 | ) | (3,943,589 | ) | ||
Change in net unrealized appreciation (depreciation) | 716,617 | (6,080,549 | ) | |||
Net increase (decrease) in net assets resulting from operations | (810,520 | ) | (7,992,382 | ) | ||
Distributions to Shareholders | ||||||
From earnings: | ||||||
Investor Class | (403,529 | ) | (466,849 | ) | ||
I Class | (357,536 | ) | (130,916 | ) | ||
A Class | (258,329 | ) | (291,034 | ) | ||
C Class | (49,480 | ) | (92,919 | ) | ||
R Class | (19,023 | ) | (17,238 | ) | ||
R6 Class | (577,763 | ) | (1,634,209 | ) | ||
Decrease in net assets from distributions | (1,665,660 | ) | (2,633,165 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (4,551,866 | ) | (23,922,935 | ) | ||
Net increase (decrease) in net assets | (7,028,046 | ) | (34,548,482 | ) | ||
Net Assets | ||||||
Beginning of period | 45,475,068 | 80,023,550 | ||||
End of period | $ | 38,447,022 | $ | 45,475,068 | ||
See Notes to Financial Statements.
14
Notes to Financial Statements |
MAY 31, 2019 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. International Value Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek long-term capital growth.
The fund offers the Investor Class, I Class, A Class, C Class, R Class and R6 Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value 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.
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. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with
16
provisions of the 1940 Act. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 31, 2019.
Remaining Contractual Maturity of Agreements | ||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | ||||||||
Securities Lending Transactions(1) | ||||||||||||
Common Stocks | $ | 627,410 | — | — | — | $ | 627,410 | |||||
Gross amount of recognized liabilities for securities lending transactions | $ | 627,410 | ||||||||||
(1) | Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand. |
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc. (ACIS), and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Strategic Asset Allocations, Inc. own, in aggregate, 13% of the shares of the fund.
Management Fees — The corporation has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that 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 International Value Fund, one fund in a series issued by the corporation.
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The management fee schedule range and the effective annual management fee for each class for the period ended May 31, 2019 are as follows:
Management Fee Schedule Range | Effective Annual Management Fee | |
Investor Class | 1.100% to 1.300% | 1.29% |
I Class | 0.900% to 1.100% | 1.09% |
A Class | 1.100% to 1.300% | 1.29% |
C Class | 1.100% to 1.300% | 1.29% |
R Class | 1.100% to 1.300% | 1.29% |
R6 Class | 0.750% to 0.950% | 0.94% |
Distribution and Service Fees — The Board of Directors has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class, C Class and R Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The plans provide that the R Class will pay ACIS an annual distribution and service fee of 0.50%. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended May 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.
Other Expenses — The fund’s other expenses may include interest charges, clearing exchange fees, proxy solicitation expenses, filing fees for foreign tax reclaims and other miscellaneous expenses. The impact of other expenses to the annualized ratio of operating expenses to average net assets was 0.07% for the period ended May 31, 2019.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. There were no interfund transactions during the period.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2019 were $15,232,368 and $20,459,495, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2019 | Year ended November 30, 2018 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 40,000,000 | 50,000,000 | ||||||||
Sold | 101,016 | $ | 745,660 | 349,891 | $ | 3,016,186 | ||||
Issued in reinvestment of distributions | 53,047 | 390,556 | 51,815 | 453,754 | ||||||
Redeemed | (241,246 | ) | (1,804,084 | ) | (562,468 | ) | (4,769,274 | ) | ||
(87,183 | ) | (667,868 | ) | (160,762 | ) | (1,299,334 | ) | |||
I Class/Shares Authorized | 40,000,000 | 40,000,000 | ||||||||
Sold | 753,794 | 5,650,420 | 1,127,653 | 9,376,389 | ||||||
Issued in reinvestment of distributions | 48,412 | 357,536 | 14,677 | 128,532 | ||||||
Redeemed | (171,724 | ) | (1,279,465 | ) | (631,878 | ) | (5,193,026 | ) | ||
630,482 | 4,728,491 | 510,452 | 4,311,895 | |||||||
A Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 21,582 | 163,522 | 94,780 | 825,130 | ||||||
Issued in reinvestment of distributions | 34,759 | 257,913 | 33,039 | 290,590 | ||||||
Redeemed | (100,450 | ) | (751,677 | ) | (222,639 | ) | (1,886,645 | ) | ||
(44,109 | ) | (330,242 | ) | (94,820 | ) | (770,925 | ) | |||
C Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 9,194 | 69,688 | 11,233 | 97,411 | ||||||
Issued in reinvestment of distributions | 6,595 | 48,966 | 10,599 | 92,411 | ||||||
Redeemed | (87,751 | ) | (650,121 | ) | (202,952 | ) | (1,661,909 | ) | ||
(71,962 | ) | (531,467 | ) | (181,120 | ) | (1,472,087 | ) | |||
R Class/Shares Authorized | 30,000,000 | 30,000,000 | ||||||||
Sold | 8,005 | 59,262 | 38,009 | 327,715 | ||||||
Issued in reinvestment of distributions | 2,572 | 18,972 | 1,967 | 17,188 | ||||||
Redeemed | (27,848 | ) | (213,219 | ) | (11,530 | ) | (99,229 | ) | ||
(17,271 | ) | (134,985 | ) | 28,446 | 245,674 | |||||
R6 Class/Shares Authorized | 45,000,000 | 70,000,000 | ||||||||
Sold | 370,421 | 2,745,677 | 1,459,293 | 12,482,479 | ||||||
Issued in reinvestment of distributions | 79,224 | 577,763 | 186,520 | 1,634,209 | ||||||
Redeemed | (1,499,033 | ) | (10,939,235 | ) | (4,700,312 | ) | (39,054,846 | ) | ||
(1,049,388 | ) | (7,615,795 | ) | (3,054,499 | ) | (24,938,158 | ) | |||
Net increase (decrease) | (639,431 | ) | $ | (4,551,866 | ) | (2,952,303 | ) | $ | (23,922,935 | ) |
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. |
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• | 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 | $ | 649,374 | $ | 36,358,107 | — | |||
Exchange-Traded Funds | 764,594 | — | — | |||||
Rights | — | 2,799 | — | |||||
Temporary Cash Investments | 26,032 | 244,361 | — | |||||
Temporary Cash Investments - Securities Lending Collateral | 627,410 | — | — | |||||
$ | 2,067,410 | $ | 36,605,267 | — | ||||
7. 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 in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 40,453,309 | |
Gross tax appreciation of investments | $ | 1,757,431 | |
Gross tax depreciation of investments | (3,538,063 | ) | |
Net tax appreciation (depreciation) of investments | $ | (1,780,632 | ) |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2018, the fund had accumulated short-term capital losses of $(3,410,549) and accumulated long-term capital losses of $(503,884), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2019(3) | $7.61 | 0.15 | (0.26) | (0.11) | (0.29) | $7.21 | (1.51)% | 1.36%(4) | 4.10%(4) | 37% | $9,799 | ||
2018 | $8.96 | 0.21 | (1.27) | (1.06) | (0.29) | $7.61 | (12.25)% | 1.30% | 2.56% | 80% | $11,008 | ||
2017 | $7.40 | 0.21 | 1.51 | 1.72 | (0.16) | $8.96 | 23.59% | 1.30% | 2.47% | 101% | $14,398 | ||
2016 | $7.83 | 0.20 | (0.45) | (0.25) | (0.18) | $7.40 | (3.15)% | 1.31% | 2.86% | 76% | $13,810 | ||
2015 | $8.91 | 0.22 | (0.97) | (0.75) | (0.33) | $7.83 | (8.56)% | 1.31% | 2.70% | 77% | $20,945 | ||
2014 | $8.97 | 0.32 | (0.19) | 0.13 | (0.19) | $8.91 | 1.38% | 1.30% | 3.55% | 89% | $19,068 | ||
I Class | |||||||||||||
2019(3) | $7.62 | 0.18 | (0.28) | (0.10) | (0.31) | $7.21 | (1.40)% | 1.16%(4) | 4.30%(4) | 37% | $11,576 | ||
2018 | $8.97 | 0.22 | (1.26) | (1.04) | (0.31) | $7.62 | (12.05)% | 1.10% | 2.76% | 80% | $7,434 | ||
2017 | $7.41 | 0.23 | 1.51 | 1.74 | (0.18) | $8.97 | 23.86% | 1.10% | 2.67% | 101% | $4,173 | ||
2016 | $7.84 | 0.22 | (0.45) | (0.23) | (0.20) | $7.41 | (2.99)% | 1.11% | 3.06% | 76% | $7,300 | ||
2015 | $8.92 | 0.28 | (1.01) | (0.73) | (0.35) | $7.84 | (8.37)% | 1.11% | 2.90% | 77% | $7,798 | ||
2014 | $8.96 | 0.38 | (0.23) | 0.15 | (0.19) | $8.92 | 1.67% | 1.10% | 3.75% | 89% | $513 | ||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
A Class | |||||||||||||
2019(3) | $7.64 | 0.14 | (0.26) | (0.12) | (0.27) | $7.25 | (1.67)% | 1.61%(4) | 3.85%(4) | 37% | $6,942 | ||
2018 | $8.99 | 0.19 | (1.27) | (1.08) | (0.27) | $7.64 | (12.43)% | 1.55% | 2.31% | 80% | $7,651 | ||
2017 | $7.41 | 0.17 | 1.55 | 1.72 | (0.14) | $8.99 | 23.45% | 1.55% | 2.22% | 101% | $9,857 | ||
2016 | $7.85 | 0.18 | (0.45) | (0.27) | (0.17) | $7.41 | (3.46)% | 1.56% | 2.61% | 76% | $11,029 | ||
2015 | $8.93 | 0.20 | (0.97) | (0.77) | (0.31) | $7.85 | (8.77)% | 1.56% | 2.45% | 77% | $14,838 | ||
2014 | $9.01 | 0.30 | (0.20) | 0.10 | (0.18) | $8.93 | 1.08% | 1.55% | 3.30% | 89% | $15,423 | ||
C Class | |||||||||||||
2019(3) | $7.54 | 0.11 | (0.26) | (0.15) | (0.20) | $7.19 | (2.07)% | 2.36%(4) | 3.10%(4) | 37% | $1,605 | ||
2018 | $8.87 | 0.13 | (1.26) | (1.13) | (0.20) | $7.54 | (13.04)% | 2.30% | 1.56% | 80% | $2,224 | ||
2017 | $7.33 | 0.12 | 1.51 | 1.63 | (0.09) | $8.87 | 22.41% | 2.30% | 1.47% | 101% | $4,225 | ||
2016 | $7.78 | 0.13 | (0.46) | (0.33) | (0.12) | $7.33 | (4.21)% | 2.31% | 1.86% | 76% | $3,774 | ||
2015 | $8.85 | 0.13 | (0.95) | (0.82) | (0.25) | $7.78 | (9.39)% | 2.31% | 1.70% | 77% | $3,502 | ||
2014 | $8.97 | 0.23 | (0.19) | 0.04 | (0.16) | $8.85 | 0.41% | 2.30% | 2.55% | 89% | $2,301 | ||
R Class | |||||||||||||
2019(3) | $7.58 | 0.12 | (0.25) | (0.13) | (0.24) | $7.21 | (1.72)% | 1.86%(4) | 3.60%(4) | 37% | $514 | ||
2018 | $8.93 | 0.18 | (1.29) | (1.11) | (0.24) | $7.58 | (12.74)% | 1.80% | 2.06% | 80% | $672 | ||
2017 | $7.36 | 0.16 | 1.52 | 1.68 | (0.11) | $8.93 | 23.09% | 1.80% | 1.97% | 101% | $537 | ||
2016 | $7.80 | 0.18 | (0.47) | (0.29) | (0.15) | $7.36 | (3.68)% | 1.81% | 2.36% | 76% | $448 | ||
2015 | $8.87 | 0.18 | (0.96) | (0.78) | (0.29) | $7.80 | (8.95)% | 1.81% | 2.20% | 77% | $387 | ||
2014 | $8.97 | 0.28 | (0.21) | 0.07 | (0.17) | $8.87 | 0.78% | 1.80% | 3.05% | 89% | $479 | ||
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
R6 Class | |||||||||||||
2019(3) | $7.63 | 0.15 | (0.25) | (0.10) | (0.32) | $7.21 | (1.34)% | 1.01%(4) | 4.45%(4) | 37% | $8,011 | ||
2018 | $8.98 | 0.26 | (1.29) | (1.03) | (0.32) | $7.63 | (11.91)% | 0.95% | 2.91% | 80% | $16,485 | ||
2017 | $7.42 | 0.23 | 1.52 | 1.75 | (0.19) | $8.98 | 24.06% | 0.95% | 2.82% | 101% | $46,833 | ||
2016 | $7.85 | 0.23 | (0.45) | (0.22) | (0.21) | $7.42 | (2.87)% | 0.96% | 3.21% | 76% | $23,378 | ||
2015 | $8.93 | 0.23 | (0.95) | (0.72) | (0.36) | $7.85 | (8.22)% | 0.96% | 3.05% | 77% | $31,418 | ||
2014 | $8.96 | 0.33 | (0.17) | 0.16 | (0.19) | $8.93 | 1.83% | 0.95% | 3.90% | 89% | $562 | ||
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2019 (unaudited). |
(4) | Annualized. |
See Notes to Financial Statements.
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.
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| ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2019 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92632 1907 | ||
Semiannual Report | |
May 31, 2019 | |
NT Emerging Markets Fund | |
G Class (ACLKX) | |
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 |
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.
Fund Characteristics |
MAY 31, 2019 | |
Top Ten Holdings | % of net assets |
Tencent Holdings Ltd. | 5.8% |
Taiwan Semiconductor Manufacturing Co. Ltd. | 4.9% |
Alibaba Group Holding Ltd. ADR | 4.6% |
Samsung Electronics Co. Ltd. | 3.4% |
Naspers Ltd., N Shares | 2.8% |
HDFC Bank Ltd. | 2.7% |
Novatek PJSC GDR | 2.6% |
Fila Korea Ltd. | 2.4% |
Banco Bradesco SA ADR | 2.0% |
CNOOC Ltd. | 2.0% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 100.4% |
Warrants | —* |
Total Equity Exposure | 100.4% |
Temporary Cash Investments | 1.0% |
Temporary Cash Investments - Securities Lending Collateral | 0.6% |
Other Assets and Liabilities | (2.0)% |
*Category is less than 0.05% of total net assets. | |
Investments by Country | % of net assets |
China | 32.1% |
South Korea | 11.5% |
India | 9.8% |
Taiwan | 9.2% |
Brazil | 8.4% |
South Africa | 6.3% |
Russia | 5.0% |
Indonesia | 3.8% |
Thailand | 3.7% |
Mexico | 3.5% |
Other Countries | 7.1% |
Cash and Equivalents* | (0.4)% |
2
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 December 1, 2018 to May 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 12/1/18 | Ending Account Value 5/31/19 | Expenses Paid During Period(1) 12/1/18 - 5/31/19 | Annualized Expense Ratio(1)(2) | |
Actual | ||||
G Class | $1,000 | $1,031.60 | $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%. |
3
Schedule of Investments |
MAY 31, 2019 (UNAUDITED)
Shares | Value | |||
COMMON STOCKS — 100.4% | ||||
Brazil — 8.4% | ||||
B3 SA - Brasil Bolsa Balcao | 760,200 | $ | 7,077,080 | |
Banco Bradesco SA ADR | 919,465 | 8,606,192 | ||
Localiza Rent a Car SA | 532,039 | 5,165,888 | ||
Lojas Renner SA | 502,040 | 5,629,470 | ||
Magazine Luiza SA | 105,500 | 5,248,450 | ||
Pagseguro Digital Ltd., Class A(1) | 136,197 | 4,361,028 | ||
36,088,108 | ||||
China — 32.1% | ||||
Alibaba Group Holding Ltd. ADR(1) | 132,712 | 19,808,593 | ||
Anhui Conch Cement Co. Ltd., H Shares | 927,000 | 5,397,388 | ||
Baozun, Inc. ADR(1) | 119,317 | 4,680,806 | ||
Brilliance China Automotive Holdings Ltd. | 4,900,000 | 4,970,588 | ||
China Construction Bank Corp., H Shares | 10,369,000 | 8,181,748 | ||
China Education Group Holdings Ltd.(2) | 2,063,000 | 3,172,004 | ||
China Gas Holdings Ltd. | 1,027,400 | 3,297,276 | ||
China Overseas Land & Investment Ltd. | 606,000 | 2,098,222 | ||
CIFI Holdings Group Co. Ltd. | 5,908,000 | 3,520,736 | ||
CNOOC Ltd. | 5,221,000 | 8,487,947 | ||
CRRC Corp. Ltd., H Shares | 3,161,000 | 2,707,690 | ||
GDS Holdings Ltd. ADR(1) | 170,199 | 5,529,766 | ||
Geely Automobile Holdings Ltd. | 793,000 | 1,295,581 | ||
Haier Electronics Group Co. Ltd. | 1,010,000 | 2,564,158 | ||
Industrial & Commercial Bank of China Ltd., H Shares | 11,535,095 | 8,221,434 | ||
Kweichow Moutai Co. Ltd., A Shares | 16,600 | 2,127,015 | ||
KWG Group Holdings Ltd.(1) | 1,146,500 | 1,147,019 | ||
Li Ning Co. Ltd.(1) | 2,015,000 | 3,326,421 | ||
New Oriental Education & Technology Group, Inc. ADR(1) | 65,347 | 5,596,971 | ||
Ping An Insurance Group Co. of China Ltd., H Shares | 672,500 | 7,403,541 | ||
Shenzhou International Group Holdings Ltd. | 323,600 | 3,804,554 | ||
TAL Education Group ADR(1) | 158,140 | 5,441,597 | ||
Tencent Holdings Ltd. | 599,800 | 24,874,302 | ||
137,655,357 | ||||
Colombia — 0.5% | ||||
Bancolombia SA ADR | 42,264 | 1,985,140 | ||
Czech Republic — 0.5% | ||||
Moneta Money Bank AS | 645,132 | 2,105,969 | ||
Egypt — 0.7% | ||||
Commercial International Bank Egypt S.A.E. | 358,685 | 1,535,992 | ||
Commercial International Bank Egypt S.A.E. GDR | 373,255 | 1,507,893 | ||
3,043,885 | ||||
Hungary — 0.8% | ||||
OTP Bank Nyrt | 84,394 | 3,521,301 | ||
4
Shares | Value | |||
India — 9.8% | ||||
Bajaj Finance Ltd. | 49,351 | $ | 2,454,497 | |
Bata India Ltd. | 246,194 | 4,679,054 | ||
Bharat Financial Inclusion Ltd.(1) | 393,762 | 5,653,318 | ||
Godrej Consumer Products Ltd. | 95,534 | 942,956 | ||
HDFC Bank Ltd. | 335,973 | 11,704,090 | ||
Indraprastha Gas Ltd. | 504,679 | 2,439,467 | ||
Jubilant Foodworks Ltd. | 229,652 | 4,322,183 | ||
Larsen & Toubro Ltd. | 118,596 | 2,665,557 | ||
Nestle India Ltd. | 17,810 | 2,934,180 | ||
Tata Consultancy Services Ltd. | 137,473 | 4,332,110 | ||
42,127,412 | ||||
Indonesia — 3.8% | ||||
Astra International Tbk PT | 5,179,800 | 2,700,227 | ||
Bank Rakyat Indonesia Persero Tbk PT | 25,922,500 | 7,437,412 | ||
Telekomunikasi Indonesia Persero Tbk PT | 22,302,300 | 6,088,376 | ||
16,226,015 | ||||
Mexico — 3.5% | ||||
America Movil SAB de CV, Class L ADR | 343,138 | 4,814,226 | ||
Grupo Aeroportuario del Centro Norte SAB de CV | 737,092 | 4,456,682 | ||
Wal-Mart de Mexico SAB de CV | 2,002,485 | 5,634,903 | ||
14,905,811 | ||||
Peru — 1.3% | ||||
Credicorp Ltd. | 25,656 | 5,741,813 | ||
Philippines — 1.4% | ||||
Ayala Land, Inc. | 6,372,900 | 6,047,507 | ||
Russia — 5.0% | ||||
Novatek PJSC GDR | 54,570 | 11,141,980 | ||
Sberbank of Russia PJSC ADR (London) | 324,450 | 4,652,099 | ||
Yandex NV, A Shares(1) | 157,939 | 5,673,169 | ||
21,467,248 | ||||
South Africa — 6.3% | ||||
Capitec Bank Holdings Ltd. | 69,090 | 6,255,198 | ||
Discovery Ltd. | 260,161 | 2,474,952 | ||
Foschini Group Ltd. (The) | 220,061 | 2,672,050 | ||
Kumba Iron Ore Ltd. | 129,950 | 3,937,932 | ||
Naspers Ltd., N Shares | 52,856 | 11,848,082 | ||
27,188,214 | ||||
South Korea — 11.5% | ||||
CJ Logistics Corp.(1)(2) | 42,502 | 5,684,735 | ||
Cosmax, Inc.(2) | 44,476 | 4,167,533 | ||
Doosan Infracore Co. Ltd.(1) | 302,829 | 1,661,313 | ||
Fila Korea Ltd. | 156,783 | 10,216,457 | ||
Hotel Shilla Co. Ltd. | 33,427 | 2,640,850 | ||
Hyundai Heavy Industries Co. Ltd.(1) | 37,239 | 3,658,371 | ||
Orion Corp/Republic of Korea | 33,416 | 2,408,591 | ||
POSCO Chemical Co. Ltd.(2) | 47,744 | 2,174,201 | ||
5
Shares | Value | |||
Samsung Electro-Mechanics Co. Ltd.(2) | 26,431 | $ | 2,094,473 | |
Samsung Electronics Co. Ltd. | 413,992 | 14,695,656 | ||
49,402,180 | ||||
Taiwan — 9.2% | ||||
Chailease Holding Co. Ltd. | 1,950,960 | 7,151,988 | ||
Chroma ATE, Inc. | 873,000 | 3,574,196 | ||
Globalwafers Co. Ltd. | 123,000 | 1,179,186 | ||
President Chain Store Corp. | 243,000 | 2,311,282 | ||
Taiwan Cement Corp. | 2,852,400 | 3,867,520 | ||
Taiwan Cement Corp. Preference Shares(1) | 142,847 | 234,921 | ||
Taiwan Semiconductor Manufacturing Co. Ltd. | 2,861,774 | 21,196,870 | ||
39,515,963 | ||||
Thailand — 3.7% | ||||
Airports of Thailand PCL | 1,069,800 | 2,121,177 | ||
CP ALL PCL | 1,839,100 | 4,632,630 | ||
Kasikornbank PCL NVDR | 467,600 | 2,756,404 | ||
Minor International PCL | 1,954,900 | 2,397,148 | ||
Muangthai Capital PCL | 2,184,700 | 3,707,344 | ||
15,614,703 | ||||
Turkey — 0.5% | ||||
BIM Birlesik Magazalar AS | 148,418 | 2,030,472 | ||
United Arab Emirates — 0.8% | ||||
First Abu Dhabi Bank PJSC | 890,219 | 3,588,178 | ||
United Kingdom — 0.6% | ||||
NMC Health plc(2) | 95,183 | 2,718,176 | ||
TOTAL COMMON STOCKS (Cost $359,030,832) | 430,973,452 | |||
WARRANTS† | ||||
Thailand† | ||||
Minor International PCL(1) (Cost $—) | 97,745 | 3 | ||
TEMPORARY CASH INVESTMENTS — 1.0% | ||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.00%, 4/30/20 - 2/15/48, valued at $3,991,633), in a joint trading account at 2.30%, dated 5/31/19, due 6/3/19 (Delivery value $3,914,210) | 3,913,460 | |||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.25%, 11/15/27, valued at $422,290), at 1.25%, dated 5/31/19, due 6/3/19 (Delivery value $414,043) | 414,000 | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 2,905 | 2,905 | ||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $4,330,365) | 4,330,365 | |||
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 0.6% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $2,619,395) | 2,619,395 | 2,619,395 | ||
TOTAL INVESTMENT SECURITIES — 102.0% (Cost $365,980,592) | 437,923,215 | |||
OTHER ASSETS AND LIABILITIES — (2.0)% | (8,765,839 | ) | ||
TOTAL NET ASSETS — 100.0% | $ | 429,157,376 | ||
6
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Financials | 26.5 | % |
Consumer Discretionary | 25.0 | % |
Information Technology | 13.2 | % |
Communication Services | 9.6 | % |
Industrials | 6.5 | % |
Consumer Staples | 6.4 | % |
Energy | 4.6 | % |
Materials | 3.6 | % |
Real Estate | 3.0 | % |
Utilities | 1.4 | % |
Health Care | 0.6 | % |
Cash and Equivalents* | (0.4 | )% |
*Includes temporary cash investments, temporary cash investments - securities lending and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
GDR | - | Global Depositary Receipt |
NVDR | - | Non-Voting Depositary Receipt |
† | Category is less than 0.05% of total net assets. |
(1) | Non-income producing. |
(2) | Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $5,994,049. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers. |
(3) | Investment of cash collateral from securities on loan. At the period end, the aggregate market value of the collateral held by the fund was $6,381,148, which includes securities collateral of $3,761,753. |
See Notes to Financial Statements.
7
Statement of Assets and Liabilities |
MAY 31, 2019 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $363,361,197) | $ | 435,303,820 | |
Investment made with cash collateral received for securities on loan, at value (cost of $2,619,395) | 2,619,395 | ||
Total investment securities, at value (cost of $365,980,592) | 437,923,215 | ||
Foreign currency holdings, at value (cost of $74,288) | 74,353 | ||
Dividends and interest receivable | 885,037 | ||
Securities lending receivable | 11,463 | ||
Other assets | 36,659 | ||
438,930,727 | |||
Liabilities | |||
Payable for collateral received for securities on loan | 2,619,395 | ||
Payable for investments purchased | 272,138 | ||
Payable for capital shares redeemed | 6,881,818 | ||
9,773,351 | |||
Net Assets | $ | 429,157,376 | |
G Class Capital Shares, $0.01 Par Value | |||
Shares authorized | 425,000,000 | ||
Shares outstanding | 40,642,681 | ||
Net Asset Value Per Share | $ | 10.56 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 366,847,729 | |
Distributable earnings | 62,309,647 | ||
$ | 429,157,376 | ||
See Notes to Financial Statements.
8
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $284,904) | $ | 2,849,931 | |
Interest | 60,892 | ||
Securities lending, net | 24,743 | ||
2,935,566 | |||
Expenses: | |||
Management fees | 1,964,610 | ||
Directors' fees and expenses | 6,017 | ||
Other expenses | 4,178 | ||
1,974,805 | |||
Fees waived | (1,964,610 | ) | |
10,195 | |||
Net investment income (loss) | 2,925,371 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | (9,370,348 | ) | |
Foreign currency translation transactions | (199,508 | ) | |
(9,569,856 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | 20,441,817 | ||
Translation of assets and liabilities in foreign currencies | 3,835 | ||
20,445,652 | |||
Net realized and unrealized gain (loss) | 10,875,796 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 13,801,167 | |
See Notes to Financial Statements.
9
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2018 | ||||||
Increase (Decrease) in Net Assets | May 31, 2019 | November 30, 2018 | ||||
Operations | ||||||
Net investment income (loss) | $ | 2,925,371 | $ | 7,969,662 | ||
Net realized gain (loss) | (9,569,856 | ) | 30,175,004 | |||
Change in net unrealized appreciation (depreciation) | 20,445,652 | (98,668,819 | ) | |||
Net increase (decrease) in net assets resulting from operations | 13,801,167 | (60,524,153 | ) | |||
Distributions to Shareholders | ||||||
From earnings | (36,104,267 | ) | (52,688,830 | ) | ||
Capital Share Transactions | ||||||
Proceeds from shares sold | 86,691,302 | 83,983,869 | ||||
Proceeds from reinvestment of distributions | 36,104,267 | 52,688,830 | ||||
Payments for shares redeemed | (74,313,275 | ) | (101,975,535 | ) | ||
Net increase (decrease) in net assets from capital share transactions | 48,482,294 | 34,697,164 | ||||
Net increase (decrease) in net assets | 26,179,194 | (78,515,819 | ) | |||
Net Assets | ||||||
Beginning of period | 402,978,182 | 481,494,001 | ||||
End of period | $ | 429,157,376 | $ | 402,978,182 | ||
Transactions in Shares of the Fund | ||||||
Sold | 7,921,462 | 6,690,534 | ||||
Issued in reinvestment of distributions | 3,643,216 | 3,988,864 | ||||
Redeemed | (6,929,018 | ) | (7,781,471 | ) | ||
Net increase (decrease) in shares of the fund | 4,635,660 | 2,897,927 | ||||
See Notes to Financial Statements.
10
Notes to Financial Statements |
MAY 31, 2019 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. NT Emerging Markets Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital growth. The fund 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.
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.
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.
11
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its securities.
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 and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities
12
loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 31, 2019.
Remaining Contractual Maturity of Agreements | ||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | ||||||||
Securities Lending Transactions(1) | ||||||||||||
Common Stocks | $ | 2,619,395 | — | — | — | $ | 2,619,395 | |||||
Gross amount of recognized liabilities for securities lending transactions | $ | 2,619,395 | ||||||||||
(1) | Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand. |
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc., and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 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 0.90%. The investment advisor agreed to waive the fund's management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors. The effective annual management fee for the period ended May 31, 2019 was 0.00% after waiver.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases were $157,209 and there were no interfund sales.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2019 were $152,985,107 and $135,475,022, respectively.
5. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
13
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | ||||||||
Brazil | $ | 12,967,220 | $ | 23,120,888 | — | |||
China | 41,057,733 | 96,597,624 | — | |||||
Colombia | 1,985,140 | — | — | |||||
Mexico | 4,814,226 | 10,091,585 | — | |||||
Peru | 5,741,813 | — | — | |||||
Russia | 5,673,169 | 15,794,079 | — | |||||
Other Countries | — | 213,129,975 | — | |||||
Warrants | — | 3 | — | |||||
Temporary Cash Investments | 2,905 | 4,327,460 | — | |||||
Temporary Cash Investments - Securities Lending Collateral | 2,619,395 | — | — | |||||
$ | 74,861,601 | $ | 363,061,614 | — | ||||
6. 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 in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
7. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 367,587,137 | |
Gross tax appreciation of investments | $ | 91,306,922 | |
Gross tax depreciation of investments | (20,970,844 | ) | |
Net tax appreciation (depreciation) of investments | $ | 70,336,078 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2018, the fund had post-October capital loss deferrals of $(1,374,985), which represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
14
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
G Class | |||||||||||||||||
2019(3) | $11.19 | 0.07 | 0.22 | 0.29 | (0.15) | (0.77) | (0.92) | $10.56 | 3.16% | 0.00%(4)(5) | 0.90%(4) | 1.34%(4) | 0.44%(4) | 31% | $429,157 | ||
2018 | $14.54 | 0.23 | (2.00) | (1.77) | (0.14) | (1.44) | (1.58) | $11.19 | (13.75)% | 0.01% | 0.95% | 1.78% | 0.84% | 66% | $402,978 | ||
2017 | $10.27 | 0.09 | 4.26 | 4.35 | (0.08) | — | (0.08) | $14.54 | 42.75% | 0.69% | 1.25% | 0.74% | 0.18% | 56% | $481,494 | ||
2016 | $9.75 | 0.05 | 0.50 | 0.55 | (0.03) | — | (0.03) | $10.27 | 5.68% | 1.18% | 1.18% | 0.53% | 0.53% | 75% | $394,433 | ||
2015 | $10.84 | 0.05 | (1.12) | (1.07) | (0.02) | — | (0.02) | $9.75 | (9.88)% | 1.24% | 1.24% | 0.49% | 0.49% | 61% | $372,802 | ||
2014 | $10.67 | 0.05 | 0.16 | 0.21 | (0.04) | — | (0.04) | $10.84 | 2.02% | 1.25% | 1.25% | 0.45% | 0.45% | 84% | $323,641 | ||
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2019 (unaudited). |
(4) | Annualized. |
(5) | Ratio was less than 0.005%. |
See Notes to Financial Statements.
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.
16
| ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2019 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92626 1907 | ||
Semiannual Report | |
May 31, 2019 | |
NT International Growth Fund | |
G Class (ACLNX) | |
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 |
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.
Fund Characteristics |
MAY 31, 2019 | |
Top Ten Holdings | % of net assets |
Nestle SA | 3.6% |
AIA Group Ltd. | 2.9% |
AstraZeneca plc | 2.4% |
CSL Ltd. | 2.4% |
Diageo plc | 2.2% |
Lonza Group AG | 2.1% |
Danone SA | 2.0% |
London Stock Exchange Group plc | 2.0% |
Keyence Corp. | 2.0% |
Symrise AG | 1.9% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 99.3% |
Temporary Cash Investments | 1.0% |
Other Assets and Liabilities | (0.3)% |
Investments by Country | % of net assets |
Japan | 14.2% |
United Kingdom | 12.9% |
Switzerland | 12.4% |
France | 10.2% |
Netherlands | 6.7% |
Germany | 6.6% |
Australia | 4.7% |
China | 4.0% |
Hong Kong | 3.9% |
Sweden | 3.7% |
Canada | 3.1% |
Ireland | 3.0% |
Other Countries | 13.9% |
Cash and Equivalents* | 0.7% |
*Includes temporary cash investments and other assets and liabilities.
2
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 December 1, 2018 to May 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 12/1/18 | Ending Account Value 5/31/19 | Expenses Paid During Period(1) 12/1/18 - 5/31/19 | Annualized Expense Ratio(1)(2) | |
Actual | ||||
G Class | $1,000 | $1,053.70 | $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%. |
3
Schedule of Investments |
MAY 31, 2019 (UNAUDITED)
Shares | Value | |||
COMMON STOCKS — 99.3% | ||||
Australia — 4.7% | ||||
Atlassian Corp. plc, Class A(1) | 29,630 | $ | 3,729,825 | |
BHP Group Ltd. | 341,230 | 8,910,090 | ||
CSL Ltd. | 135,080 | 19,213,294 | ||
Treasury Wine Estates Ltd. | 638,080 | 6,604,877 | ||
38,458,086 | ||||
Austria — 1.0% | ||||
Erste Group Bank AG(1) | 230,584 | 8,172,911 | ||
Belgium — 1.1% | ||||
KBC Group NV | 131,440 | 8,633,233 | ||
Brazil — 1.5% | ||||
Localiza Rent a Car SA | 728,220 | 7,070,728 | ||
Magazine Luiza SA | 101,000 | 5,024,582 | ||
12,095,310 | ||||
Canada — 3.1% | ||||
Alimentation Couche-Tard, Inc., B Shares | 150,790 | 9,254,240 | ||
Canada Goose Holdings, Inc.(1) | 153,410 | 5,162,247 | ||
Canadian Pacific Railway Ltd. | 28,900 | 6,334,651 | ||
Nutrien Ltd. | 98,160 | 4,787,442 | ||
25,538,580 | ||||
China — 4.0% | ||||
Alibaba Group Holding Ltd. ADR(1) | 68,200 | 10,179,532 | ||
ANTA Sports Products Ltd. | 1,276,000 | 7,782,857 | ||
GDS Holdings Ltd. ADR(1) | 118,060 | 3,835,769 | ||
TAL Education Group ADR(1) | 96,170 | 3,309,210 | ||
Tencent Holdings Ltd. | 181,400 | 7,522,838 | ||
32,630,206 | ||||
Denmark — 1.8% | ||||
Chr Hansen Holding A/S | 77,340 | 8,054,577 | ||
DSV A/S | 71,202 | 6,332,331 | ||
14,386,908 | ||||
Finland — 1.3% | ||||
Neste Oyj | 321,930 | 10,850,921 | ||
France — 10.2% | ||||
Airbus SE | 95,410 | 12,260,182 | ||
BNP Paribas SA | 71,420 | 3,255,189 | ||
Danone SA | 206,930 | 16,515,539 | ||
Dassault Systemes SE | 69,110 | 10,242,222 | ||
Edenred | 139,990 | 6,392,915 | ||
Kering SA | 22,350 | 11,609,595 | ||
Peugeot SA | 143,280 | 3,193,377 | ||
TOTAL SA | 173,490 | 8,974,181 | ||
4
Shares | Value | |||
Ubisoft Entertainment SA(1) | 42,652 | $ | 3,497,569 | |
Vivendi SA | 249,950 | 6,717,922 | ||
82,658,691 | ||||
Germany — 6.6% | ||||
adidas AG | 42,290 | 12,103,292 | ||
Aroundtown SA | 1,021,110 | 8,670,213 | ||
HUGO BOSS AG | 43,740 | 2,545,078 | ||
Infineon Technologies AG | 231,980 | 4,184,499 | ||
SAP SE | 87,730 | 10,841,042 | ||
Symrise AG | 166,800 | 15,633,899 | ||
53,978,023 | ||||
Hong Kong — 3.9% | ||||
AIA Group Ltd. | 2,543,000 | 23,823,804 | ||
Hong Kong Exchanges & Clearing Ltd. | 234,500 | 7,437,355 | ||
31,261,159 | ||||
Hungary — 0.4% | ||||
OTP Bank Nyrt | 76,480 | 3,191,093 | ||
India — 0.8% | ||||
HDFC Bank Ltd. | 179,090 | 6,238,851 | ||
Indonesia — 0.7% | ||||
Bank Central Asia Tbk PT | 2,829,100 | 5,764,405 | ||
Ireland — 3.0% | ||||
CRH plc | 333,192 | 10,423,757 | ||
ICON plc(1) | 34,210 | 4,842,767 | ||
Kerry Group plc, A Shares | 79,810 | 9,221,481 | ||
24,488,005 | ||||
Italy — 0.6% | ||||
Nexi SpA(1) | 462,736 | 4,497,426 | ||
Japan — 14.2% | ||||
Fast Retailing Co. Ltd. | 14,800 | 8,561,148 | ||
GMO Payment Gateway, Inc. | 49,000 | 3,272,114 | ||
Hoya Corp. | 159,500 | 11,038,547 | ||
JGC Corp. | 342,600 | 4,532,922 | ||
Keyence Corp. | 28,800 | 16,154,748 | ||
MonotaRO Co. Ltd. | 330,700 | 7,008,742 | ||
Obic Co. Ltd. | 62,500 | 7,503,760 | ||
Pan Pacific International Holdings Corp. | 183,800 | 11,319,426 | ||
Recruit Holdings Co. Ltd. | 424,300 | 13,537,302 | ||
Shiseido Co. Ltd. | 169,700 | 12,172,963 | ||
Sysmex Corp. | 160,400 | 11,090,870 | ||
Terumo Corp. | 318,700 | 9,009,176 | ||
115,201,718 | ||||
Netherlands — 6.7% | ||||
Adyen NV(1) | 10,300 | 8,282,237 | ||
ASML Holding NV | 47,990 | 9,042,951 | ||
InterXion Holding NV(1) | 160,440 | 11,826,032 | ||
Koninklijke DSM NV | 120,230 | 13,511,827 | ||
5
Shares | Value | |||
Koninklijke KPN NV | 2,321,020 | $ | 7,096,147 | |
QIAGEN NV(1) | 132,353 | 5,040,002 | ||
54,799,196 | ||||
New Zealand — 0.9% | ||||
a2 Milk Co. Ltd.(1) | 718,160 | 7,308,086 | ||
Norway — 0.6% | ||||
Aker BP ASA | 87,509 | 2,350,525 | ||
Subsea 7 SA | 263,790 | 2,914,121 | ||
5,264,646 | ||||
Russia — 0.9% | ||||
Yandex NV, A Shares(1) | 193,490 | 6,950,161 | ||
Spain — 1.6% | ||||
Cellnex Telecom SA(1) | 364,456 | 12,800,320 | ||
Sweden — 3.7% | ||||
Atlas Copco AB, A Shares | 158,940 | 4,282,802 | ||
Hexagon AB, B Shares | 151,110 | 7,015,145 | ||
Lundin Petroleum AB | 302,620 | 8,211,730 | ||
Telefonaktiebolaget LM Ericsson, B Shares | 1,071,380 | 10,340,615 | ||
29,850,292 | ||||
Switzerland — 12.4% | ||||
Alcon, Inc.(1) | 85,602 | 4,978,381 | ||
Lonza Group AG(1) | 55,090 | 16,921,424 | ||
Nestle SA | 293,050 | 29,104,977 | ||
Novartis AG | 165,430 | 14,207,617 | ||
Partners Group Holding AG | 11,880 | 8,328,235 | ||
Sika AG | 59,825 | 8,880,113 | ||
Straumann Holding AG | 10,250 | 8,429,305 | ||
Temenos AG(1) | 56,190 | 9,759,653 | ||
100,609,705 | ||||
Taiwan — 0.7% | ||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 768,000 | 5,688,498 | ||
United Kingdom — 12.9% | ||||
Ashtead Group plc | 111,934 | 2,628,066 | ||
Associated British Foods plc | 272,670 | 8,516,006 | ||
AstraZeneca plc | 262,170 | 19,346,122 | ||
B&M European Value Retail SA | 2,121,986 | 9,473,098 | ||
Bunzl plc | 157,450 | 4,214,057 | ||
Burberry Group plc | 248,290 | 5,329,627 | ||
Diageo plc | 426,540 | 17,930,224 | ||
Ferguson plc(1) | 61,760 | 3,989,200 | ||
London Stock Exchange Group plc | 243,700 | 16,236,933 | ||
Melrose Industries plc | 2,814,360 | 5,818,005 | ||
Prudential plc | 252,260 | 5,026,661 | ||
Standard Chartered plc (London) | 751,170 | 6,534,895 | ||
105,042,894 | ||||
TOTAL COMMON STOCKS (Cost $680,464,258) | 806,359,324 | |||
6
Shares | Value | |||
TEMPORARY CASH INVESTMENTS — 1.0% | ||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.00%, 4/30/20 - 2/15/48, valued at $7,568,847), in a joint trading account at 2.30%, dated 5/31/19, due 6/3/19 (Delivery value $7,422,039) | $ | 7,420,617 | ||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.25%, 11/15/27, valued at $804,362), at 1.25%, dated 5/31/19, due 6/3/19 (Delivery value $785,082) | 785,000 | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 5,527 | 5,527 | ||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $8,211,144) | 8,211,144 | |||
TOTAL INVESTMENT SECURITIES — 100.3% (Cost $688,675,402) | 814,570,468 | |||
OTHER ASSETS AND LIABILITIES — (0.3)% | (2,177,077 | ) | ||
TOTAL NET ASSETS — 100.0% | $ | 812,393,391 | ||
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Information Technology | 15.5 | % |
Health Care | 15.4 | % |
Consumer Staples | 14.3 | % |
Financials | 12.7 | % |
Consumer Discretionary | 11.7 | % |
Industrials | 10.4 | % |
Materials | 8.7 | % |
Communication Services | 5.5 | % |
Energy | 4.0 | % |
Real Estate | 1.1 | % |
Cash and Equivalents* | 0.7 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
(1) | Non-income producing. |
See Notes to Financial Statements.
7
Statement of Assets and Liabilities |
MAY 31, 2019 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $688,675,402) | $ | 814,570,468 | |
Foreign currency holdings, at value (cost of $436,918) | 438,263 | ||
Receivable for investments sold | 8,689,424 | ||
Dividends and interest receivable | 2,270,896 | ||
Other assets | 18,169 | ||
825,987,220 | |||
Liabilities | |||
Payable for investments purchased | 7,412,678 | ||
Payable for capital shares redeemed | 6,082,554 | ||
Accrued foreign taxes | 98,597 | ||
13,593,829 | |||
Net Assets | $ | 812,393,391 | |
G Class Capital Shares, $0.01 Par Value | |||
Shares authorized | 900,000,000 | ||
Shares outstanding | 80,200,989 | ||
Net Asset Value Per Share | $ | 10.13 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 700,464,416 | |
Distributable earnings | 111,928,975 | ||
$ | 812,393,391 | ||
See Notes to Financial Statements.
8
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $994,671) | $ | 9,472,195 | |
Interest | 65,402 | ||
9,537,597 | |||
Expenses: | |||
Management fees | 3,434,418 | ||
Directors' fees and expenses | 11,530 | ||
Other expenses | 20,207 | ||
3,466,155 | |||
Fees waived | (3,434,418 | ) | |
31,737 | |||
Net investment income (loss) | 9,505,860 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | (11,858,962 | ) | |
Foreign currency translation transactions | (82,288 | ) | |
(11,941,250 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments (includes (increase) decrease in accrued foreign taxes of $(78,552)) | 44,703,837 | ||
Translation of assets and liabilities in foreign currencies | 3,739 | ||
44,707,576 | |||
Net realized and unrealized gain (loss) | 32,766,326 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 42,272,186 | |
See Notes to Financial Statements.
9
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2018 | ||||||
Increase (Decrease) in Net Assets | May 31, 2019 | November 30, 2018 | ||||
Operations | ||||||
Net investment income (loss) | $ | 9,505,860 | $ | 17,150,265 | ||
Net realized gain (loss) | (11,941,250 | ) | 91,980,493 | |||
Change in net unrealized appreciation (depreciation) | 44,707,576 | (172,890,172 | ) | |||
Net increase (decrease) in net assets resulting from operations | 42,272,186 | (63,759,414 | ) | |||
Distributions to Shareholders | ||||||
From earnings | (108,218,409 | ) | (46,157,333 | ) | ||
Capital Share Transactions | ||||||
Proceeds from shares sold | 17,602,424 | 91,937,445 | ||||
Proceeds from reinvestment of distributions | 108,218,409 | 46,157,333 | ||||
Payments for shares redeemed | (143,720,678 | ) | (171,783,307 | ) | ||
Net increase (decrease) in net assets from capital share transactions | (17,899,845 | ) | (33,688,529 | ) | ||
Net increase (decrease) in net assets | (83,846,068 | ) | (143,605,276 | ) | ||
Net Assets | ||||||
Beginning of period | 896,239,459 | 1,039,844,735 | ||||
End of period | $ | 812,393,391 | $ | 896,239,459 | ||
Transactions in Shares of the Fund | ||||||
Sold | 1,795,189 | 7,621,342 | ||||
Issued in reinvestment of distributions | 11,892,133 | 3,761,239 | ||||
Redeemed | (13,998,124 | ) | (13,568,888 | ) | ||
Net increase (decrease) in shares of the fund | (310,802 | ) | (2,186,307 | ) | ||
See Notes to Financial Statements.
10
Notes to Financial Statements |
MAY 31, 2019 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. NT International Growth Fund (the fund) is one fund in a series issued by the corporation. The fund's investment objective is to seek capital growth. The fund 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.
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.
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.
11
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Certain countries impose taxes on realized gains on the sale of securities registered in their country. The fund records the foreign tax expense, if any, on an accrual basis. The foreign tax expense on realized gains and unrealized appreciation reduces the net realized gain (loss) on investment transactions and net unrealized appreciation (depreciation) on investments, respectively.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
12
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 International Growth Fund, one fund in a series issued by the corporation. The management fee schedule ranges from 0.700% to 1.150%. The investment advisor agreed to waive the fund’s management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors. The effective annual management fee for the period ended May 31, 2019 was 0.83% before waiver and 0.00% after waiver.
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases were $1,053,070 and there were no interfund sales.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2019 were $340,687,408 and $447,544,544, respectively.
5. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
13
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | ||||||||
Australia | $ | 3,729,825 | $ | 34,728,261 | — | |||
Canada | 5,162,247 | 20,376,333 | — | |||||
China | 17,324,511 | 15,305,695 | — | |||||
Ireland | 4,842,767 | 19,645,238 | — | |||||
Netherlands | 16,866,034 | 37,933,162 | — | |||||
Russia | 6,950,161 | — | — | |||||
Other Countries | — | 623,495,090 | — | |||||
Temporary Cash Investments | 5,527 | 8,205,617 | — | |||||
$ | 54,881,072 | $ | 759,689,396 | — | ||||
6. 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 in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
7. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 692,970,540 | |
Gross tax appreciation of investments | $ | 137,687,102 | |
Gross tax depreciation of investments | (16,087,174 | ) | |
Net tax appreciation (depreciation) of investments | $ | 121,599,928 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2018, the fund had post-October capital loss deferrals of $(8,989,212), which represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
14
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
G Class | |||||||||||||||||
2019(3) | $11.13 | 0.11 | 0.32 | 0.43 | (0.22) | (1.21) | (1.43) | $10.13 | 5.37% | 0.00%(4)(5) | 0.83%(4) | 2.29%(4) | 1.46%(4) | 41% | $812,393 | ||
2018 | $12.57 | 0.22 | (1.09) | (0.87) | (0.20) | (0.37) | (0.57) | $11.13 | (7.35)% | 0.01% | 0.82% | 1.75% | 0.94% | 71% | $896,239 | ||
2017 | $9.61 | 0.14 | 2.91 | 3.05 | (0.09) | — | (0.09) | $12.57 | 32.02% | 0.61% | 0.91% | 1.26% | 0.96% | 57% | $1,039,845 | ||
2016 | $10.95 | 0.10 | (1.02) | (0.92) | (0.08) | (0.34) | (0.42) | $9.61 | (8.69)% | 0.98% | 0.98% | 0.98% | 0.98% | 69% | $845,423 | ||
2015 | $11.58 | 0.08 | (0.26) | (0.18) | (0.05) | (0.40) | (0.45) | $10.95 | (1.44)% | 0.97% | 0.97% | 0.69% | 0.69% | 83% | $795,985 | ||
2014 | $12.17 | 0.10 | 0.03 | 0.13 | (0.17) | (0.55) | (0.72) | $11.58 | 1.26% | 0.98% | 0.98% | 0.86% | 0.86% | 67% | $938,672 | ||
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2019 (unaudited). |
(4) | Annualized. |
(5) | Ratio was less than 0.005%. |
See Notes to Financial Statements.
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.
16
| ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2019 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92627 1907 | ||
Semiannual Report | |
May 31, 2019 | |
NT International Small-Mid Cap Fund | |
Investor Class (ANTSX) | |
G Class (ANTMX) | |
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 |
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.
Fund Characteristics |
MAY 31, 2019 | |
Top Ten Holdings | % of net assets |
Rheinmetall AG | 1.9% |
Intermediate Capital Group plc | 1.9% |
Aveva Group plc | 1.7% |
Entertainment One Ltd. | 1.7% |
Korian SA | 1.6% |
Barco NV | 1.5% |
Seven Group Holdings Ltd. | 1.5% |
Orix JREIT, Inc. | 1.5% |
Adastria Co. Ltd. | 1.5% |
HomeServe plc | 1.4% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 99.1% |
Temporary Cash Investments | 1.3% |
Temporary Cash Investments - Securities Lending Collateral | 1.3% |
Other Assets and Liabilities | (1.7)% |
Investments by Country | % of net assets |
United Kingdom | 23.1% |
Japan | 21.3% |
France | 7.8% |
Canada | 7.4% |
Australia | 6.6% |
Sweden | 6.3% |
Germany | 4.3% |
Netherlands | 4.2% |
Belgium | 3.4% |
Switzerland | 3.3% |
Italy | 2.8% |
Other Countries | 8.6% |
Cash and Equivalents* | 0.9% |
*Includes temporary cash investments, temporary cash investments - securities lending collateral and other assets and liabilities.
2
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 December 1, 2018 to May 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 12/1/18 | Ending Account Value 5/31/19 | Expenses Paid During Period(1) 12/1/18 - 5/31/19 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,037.40 | $7.47 | 1.47% |
G Class | $1,000 | $1,045.40 | $0.00 | 0.00%(2) |
Hypothetical | ||||
Investor Class | $1,000 | $1,017.60 | $7.39 | 1.47% |
G Class | $1,000 | $1,024.93 | $0.00 | 0.00%(2) |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 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%. |
3
Schedule of Investments |
MAY 31, 2019 (UNAUDITED)
Shares | Value | |||
COMMON STOCKS — 99.1% | ||||
Australia — 6.6% | ||||
Afterpay Touch Group Ltd.(1) | 149,577 | $ | 2,481,027 | |
ALS Ltd. | 392,424 | 1,926,861 | ||
Breville Group Ltd. | 56,540 | 659,955 | ||
Cleanaway Waste Management Ltd. | 2,112,570 | 3,261,803 | ||
Jumbo Interactive Ltd. | 122,456 | 1,528,075 | ||
Northern Star Resources Ltd. | 321,243 | 2,183,436 | ||
Saracen Mineral Holdings Ltd.(1) | 636,474 | 1,425,427 | ||
Seven Group Holdings Ltd.(2) | 382,390 | 4,948,624 | ||
WiseTech Global Ltd. | 216,705 | 3,637,374 | ||
22,052,582 | ||||
Belgium — 3.4% | ||||
Argenx SE(1) | 20,140 | 2,491,978 | ||
Barco NV | 26,310 | 5,116,258 | ||
Galapagos NV(1)(2) | 33,969 | 3,860,551 | ||
11,468,787 | ||||
Canada — 7.4% | ||||
ATS Automation Tooling Systems, Inc.(1) | 136,777 | 2,060,358 | ||
Badger Daylighting Ltd. | 113,100 | 4,000,674 | ||
Canada Goose Holdings, Inc.(1) | 71,345 | 2,400,759 | ||
Colliers International Group, Inc. | 42,103 | 2,593,590 | ||
Descartes Systems Group, Inc. (The)(1) | 80,983 | 3,248,068 | ||
FirstService Corp. | 27,937 | 2,531,816 | ||
Gibson Energy, Inc. | 150,490 | 2,456,207 | ||
Hudbay Minerals, Inc. | 240,121 | 1,179,642 | ||
Kirkland Lake Gold Ltd. | 113,986 | 3,942,620 | ||
24,413,734 | ||||
Finland — 1.8% | ||||
Konecranes Oyj | 109,973 | 3,766,627 | ||
Valmet Oyj | 97,303 | 2,241,915 | ||
6,008,542 | ||||
France — 7.8% | ||||
Alten SA | 16,727 | 1,695,257 | ||
Euronext NV | 53,897 | 3,831,515 | ||
Gaztransport Et Technigaz SA | 42,750 | 3,884,221 | ||
Korian SA | 134,553 | 5,359,927 | ||
Maisons du Monde SA | 19,396 | 387,840 | ||
Rubis SCA | 16,075 | 801,878 | ||
SOITEC(1) | 42,444 | 3,568,450 | ||
Solutions 30 SE(1) | 276,368 | 2,736,727 | ||
Teleperformance | 19,017 | 3,646,428 | ||
25,912,243 | ||||
4
Shares | Value | |||
Germany — 4.3% | ||||
Isra Vision AG | 53,722 | $ | 1,955,029 | |
MorphoSys AG(1) | 18,557 | 1,793,856 | ||
Rheinmetall AG | 58,826 | 6,260,387 | ||
Sixt SE | 26,350 | 2,673,779 | ||
Stroeer SE & Co. KGaA | 24,789 | 1,659,554 | ||
14,342,605 | ||||
Hong Kong — 1.1% | ||||
Ausnutria Dairy Corp. Ltd. | 555,000 | 1,018,743 | ||
Melco International Development Ltd. | 1,328,000 | 2,653,019 | ||
3,671,762 | ||||
Ireland — 0.9% | ||||
Dalata Hotel Group plc | 491,260 | 2,907,459 | ||
Israel — 0.8% | ||||
Kornit Digital Ltd.(1) | 89,486 | 2,538,718 | ||
Italy — 2.8% | ||||
Amplifon SpA | 163,809 | 3,630,276 | ||
FinecoBank Banca Fineco SpA | 390,544 | 4,034,808 | ||
Salvatore Ferragamo SpA(2) | 75,312 | 1,566,057 | ||
9,231,141 | ||||
Japan — 21.3% | ||||
Adastria Co. Ltd. | 199,600 | 4,898,804 | ||
Ain Holdings, Inc. | 31,100 | 2,378,386 | ||
Anritsu Corp. | 111,200 | 1,749,062 | ||
Cosmos Pharmaceutical Corp. | 5,800 | 916,312 | ||
Fancl Corp. | 105,700 | 2,841,257 | ||
GMO Payment Gateway, Inc. | 31,300 | 2,090,146 | ||
KH Neochem Co. Ltd. | 118,600 | 3,167,519 | ||
Kobe Bussan Co. Ltd. | 76,000 | 3,469,958 | ||
Kyoritsu Maintenance Co. Ltd. | 33,700 | 1,678,260 | ||
Lasertec Corp. | 72,500 | 2,499,346 | ||
Modec, Inc. | 65,400 | 1,628,363 | ||
Nabtesco Corp. | 85,500 | 2,127,323 | ||
Nachi-Fujikoshi Corp. | 3,100 | 116,737 | ||
Nihon Kohden Corp. | 63,500 | 1,813,946 | ||
Nihon M&A Center, Inc. | 124,800 | 3,100,015 | ||
Orix JREIT, Inc. | 2,740 | 4,916,828 | ||
PeptiDream, Inc.(1) | 71,300 | 3,531,647 | ||
Pigeon Corp. | 61,300 | 2,303,534 | ||
Pressance Corp. | 215,100 | 2,702,518 | ||
Raksul, Inc.(1) | 40,000 | 1,712,462 | ||
Rengo Co. Ltd. | 326,200 | 2,591,169 | ||
Sawai Pharmaceutical Co. Ltd. | 17,800 | 916,414 | ||
SCREEN Holdings Co. Ltd. | 21,600 | 735,695 | ||
SCSK Corp. | 54,100 | 2,613,814 | ||
SHO-BOND Holdings Co. Ltd. | 47,500 | 3,283,652 | ||
Solasto Corp. | 103,500 | 909,950 | ||
5
Shares | Value | |||
Tadano Ltd. | 180,000 | $ | 1,724,816 | |
Tokyo Base Co. Ltd.(1) | 211,600 | 1,574,698 | ||
Trust Tech, Inc. | 107,700 | 3,094,537 | ||
Yume No Machi Souzou Iinkai Co. Ltd. | 73,400 | 904,227 | ||
Zenkoku Hosho Co. Ltd. | 72,600 | 2,769,358 | ||
70,760,753 | ||||
Netherlands — 4.2% | ||||
ASR Nederland NV | 80,430 | 3,045,195 | ||
BE Semiconductor Industries NV(2) | 63,690 | 1,431,749 | ||
IMCD NV | 21,529 | 1,750,356 | ||
InterXion Holding NV(1) | 57,653 | 4,249,603 | ||
Takeaway.com NV(1) | 37,888 | 3,343,449 | ||
13,820,352 | ||||
Norway — 1.9% | ||||
Subsea 7 SA | 345,198 | 3,813,445 | ||
TGS NOPEC Geophysical Co. ASA | 99,420 | 2,487,354 | ||
6,300,799 | ||||
Portugal — 1.0% | ||||
NOS SGPS SA | 537,096 | 3,387,988 | ||
Singapore — 0.5% | ||||
Mapletree Industrial Trust | 1,163,400 | 1,786,981 | ||
Spain — 0.6% | ||||
Inmobiliaria Colonial Socimi SA | 173,070 | 1,915,977 | ||
Sweden — 6.3% | ||||
Elekta AB, B Shares | 307,566 | 3,997,531 | ||
Fabege AB | 269,720 | 4,046,926 | ||
Fastighets AB Balder, B Shares(1) | 101,339 | 3,291,880 | ||
Indutrade AB | 133,654 | 3,896,712 | ||
Loomis AB, B Shares | 64,011 | 2,071,818 | ||
Thule Group AB | 153,640 | 3,502,441 | ||
20,807,308 | ||||
Switzerland — 3.3% | ||||
Georg Fischer AG | 2,774 | 2,344,202 | ||
Interroll Holding AG | 802 | 1,698,807 | ||
Siegfried Holding AG(1) | 4,792 | 1,712,140 | ||
Tecan Group AG | 14,481 | 3,472,003 | ||
VAT Group AG(1) | 15,254 | 1,642,963 | ||
10,870,115 | ||||
United Kingdom — 23.1% | ||||
Abcam plc | 166,342 | 2,993,172 | ||
Ashmore Group plc | 371,109 | 2,211,160 | ||
Avast plc | 863,406 | 3,375,773 | ||
Aveva Group plc | 123,313 | 5,770,810 | ||
B&M European Value Retail SA | 919,848 | 4,106,441 | ||
Burford Capital Ltd. | 120,089 | 2,520,557 | ||
Dechra Pharmaceuticals plc | 73,285 | 2,525,457 | ||
Electrocomponents plc | 607,585 | 4,659,995 | ||
6
Shares | Value | |||
Entertainment One Ltd. | 1,027,475 | $ | 5,684,006 | |
Ferrexpo plc | 608,157 | 1,773,804 | ||
Fevertree Drinks plc | 88,560 | 2,975,862 | ||
Grafton Group plc | 291,684 | 3,140,214 | ||
HomeServe plc | 311,439 | 4,744,698 | ||
Intermediate Capital Group plc | 375,734 | 6,251,764 | ||
JD Sports Fashion plc | 285,570 | 2,230,035 | ||
Keywords Studios plc | 133,527 | 2,897,631 | ||
Melrose Industries plc | 1,335,496 | 2,760,813 | ||
Moneysupermarket.com Group plc | 568,890 | 2,634,402 | ||
Nomad Foods Ltd.(1) | 181,634 | 3,854,273 | ||
Rentokil Initial plc | 546,751 | 2,588,788 | ||
Rotork plc | 612,387 | 2,226,425 | ||
SSP Group plc | 197,041 | 1,670,262 | ||
UNITE Group plc (The) | 255,538 | 3,059,675 | ||
76,656,017 | ||||
TOTAL COMMON STOCKS (Cost $304,814,675) | 328,853,863 | |||
TEMPORARY CASH INVESTMENTS — 1.3% | ||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.00%, 4/30/20 - 2/15/48, valued at $4,072,061), in a joint trading account at 2.30%, dated 5/31/19, due 6/3/19 (Delivery value $3,993,078) | 3,992,313 | |||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.25%, 11/15/27, valued at $432,345), at 1.25%, dated 5/31/19, due 6/3/19 (Delivery value $422,044) | 422,000 | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 3,306 | 3,306 | ||
TOTAL TEMPORARY CASH INVESTMENTS (Cost $4,417,619) | 4,417,619 | |||
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 1.3% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $4,195,554) | 4,195,554 | 4,195,554 | ||
TOTAL INVESTMENT SECURITIES — 101.7% (Cost $313,427,848) | 337,467,036 | |||
OTHER ASSETS AND LIABILITIES — (1.7)% | (5,760,889 | ) | ||
TOTAL NET ASSETS — 100.0% | $ | 331,706,147 | ||
7
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Industrials | 24.3 | % |
Information Technology | 17.0 | % |
Consumer Discretionary | 12.6 | % |
Health Care | 11.8 | % |
Financials | 7.5 | % |
Real Estate | 7.3 | % |
Consumer Staples | 6.0 | % |
Materials | 4.9 | % |
Energy | 4.3 | % |
Communication Services | 3.2 | % |
Utilities | 0.2 | % |
Cash and Equivalents* | 0.9 | % |
*Includes temporary cash investments, temporary cash investments - securities lending collateral and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
(1) | Non-income producing. |
(2) | Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $8,903,348. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers. |
(3) | Investment of cash collateral from securities on loan. At the period end, the aggregate market value of the collateral held by the fund was $9,410,768, which includes securities collateral of $5,215,214. |
See Notes to Financial Statements.
8
Statement of Assets and Liabilities |
MAY 31, 2019 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $309,232,294) | $ | 333,271,482 | |
Investment made with cash collateral received for securities on loan, at value (cost of $4,195,554) | 4,195,554 | ||
Total investment securities, at value (cost of $313,427,848) | 337,467,036 | ||
Foreign currency holdings, at value (cost of $127,130) | 127,446 | ||
Receivable for investments sold | 1,489,739 | ||
Dividends and interest receivable | 773,072 | ||
Securities lending receivable | 2,997 | ||
339,860,290 | |||
Liabilities | |||
Payable for collateral received for securities on loan | 4,195,554 | ||
Payable for investments purchased | 1,098,160 | ||
Payable for capital shares redeemed | 2,733,383 | ||
Accrued management fees | 127,046 | ||
8,154,143 | |||
Net Assets | $ | 331,706,147 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 328,462,038 | |
Distributable earnings | 3,244,109 | ||
$ | 331,706,147 | ||
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $99,174,795 | 10,186,770 | $9.74 | |||
G Class, $0.01 Par Value | $232,531,352 | 23,704,954 | $9.81 | |||
See Notes to Financial Statements.
9
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $366,530) | $ | 3,179,868 | |
Interest | 73,289 | ||
Securities lending, net | 3,647 | ||
3,256,804 | |||
Expenses: | |||
Management fees | 2,033,885 | ||
Directors' fees and expenses | 4,411 | ||
Other expenses | 1,709 | ||
2,040,005 | |||
Fees waived - G Class | (1,316,050 | ) | |
723,955 | |||
Net investment income (loss) | 2,532,849 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | (18,965,402 | ) | |
Foreign currency translation transactions | (104,285 | ) | |
(19,069,687 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | 35,379,696 | ||
Translation of assets and liabilities in foreign currencies | 4,099 | ||
35,383,795 | |||
Net realized and unrealized gain (loss) | 16,314,108 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 18,846,957 | |
See Notes to Financial Statements.
10
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2018 | ||||||
Increase (Decrease) in Net Assets | May 31, 2019 | November 30, 2018 | ||||
Operations | ||||||
Net investment income (loss) | $ | 2,532,849 | $ | 2,532,147 | ||
Net realized gain (loss) | (19,069,687 | ) | 33,788,716 | |||
Change in net unrealized appreciation (depreciation) | 35,383,795 | (65,515,242 | ) | |||
Net increase (decrease) in net assets resulting from operations | 18,846,957 | (29,194,379 | ) | |||
Distributions to Shareholders | ||||||
From earnings: | ||||||
Investor Class | (10,045,152 | ) | (5,214,906 | ) | ||
G Class | (28,156,452 | ) | (12,170,408 | ) | ||
Decrease in net assets from distributions | (38,201,604 | ) | (17,385,314 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 144,961,050 | 3,241,291 | ||||
Net increase (decrease) in net assets | 125,606,403 | (43,338,402 | ) | |||
Net Assets | ||||||
Beginning of period | 206,099,744 | 249,438,146 | ||||
End of period | $ | 331,706,147 | $ | 206,099,744 | ||
See Notes to Financial Statements.
11
Notes to Financial Statements |
MAY 31, 2019 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. NT International Small-Mid Cap Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital growth. The fund 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 Investor Class and G Class.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value 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.
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.
12
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
13
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 31, 2019.
Remaining Contractual Maturity of Agreements | ||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | ||||||||
Securities Lending Transactions(1) | ||||||||||||
Common Stocks | $ | 4,195,554 | — | — | — | $ | 4,195,554 | |||||
Gross amount of recognized liabilities for securities lending transactions | $ | 4,195,554 | ||||||||||
(1) | Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand. |
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc., and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 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) per class. 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 each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services, which may be provided indirectly through another American Century Investments mutual fund. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The investment advisor agreed to waive the G Class’s management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors.
The annual management fee for each class is as follows:
Investor Class | G Class |
1.47% | 0.00%(1) |
(1) | Annual management fee before waiver was 1.12%. |
14
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund sales were $382,264 and there were no interfund purchases. The effect of interfund transactions on the Statement of Operations was $(138,405) in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2019 were $345,602,486 and $237,591,963, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2019 | Year ended November 30, 2018 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 110,000,000 | 80,000,000 | ||||||||
Sold | 3,003,767 | $ | 30,525,148 | 119,310 | $ | 1,527,631 | ||||
Issued in reinvestment of distributions | 1,151,967 | 10,045,152 | 404,215 | 5,214,906 | ||||||
Redeemed | (222,651 | ) | (2,185,654 | ) | (81,134 | ) | (1,058,906 | ) | ||
3,933,083 | 38,384,646 | 442,391 | 5,683,631 | |||||||
G Class/Shares Authorized | 270,000,000 | 140,000,000 | ||||||||
Sold | 9,930,629 | 102,666,716 | 1,614,756 | 19,145,913 | ||||||
Issued in reinvestment of distributions | 3,225,252 | 28,156,452 | 935,115 | 12,170,408 | ||||||
Redeemed | (2,517,833 | ) | (24,246,764 | ) | (2,540,006 | ) | (33,758,661 | ) | ||
10,638,048 | 106,576,404 | 9,865 | (2,442,340 | ) | ||||||
Net increase (decrease) | 14,571,131 | $ | 144,961,050 | 452,256 | $ | 3,241,291 | ||||
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.
15
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 | $ | 13,043,353 | $ | 315,810,510 | — | |||
Temporary Cash Investments | 3,306 | 4,414,313 | — | |||||
Temporary Cash Investments - Securities Lending Collateral | 4,195,554 | — | — | |||||
$ | 17,242,213 | $ | 320,224,823 | — | ||||
7. 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.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
The fund’s investment process may result in high portfolio turnover, which could mean high transaction costs, affecting both performance and capital gains tax liabilities to investors.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 317,112,218 | |
Gross tax appreciation of investments | $ | 31,394,856 | |
Gross tax depreciation of investments | (11,040,038 | ) | |
Net tax appreciation (depreciation) of investments | $ | 20,354,818 | |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2018, the fund had post-October capital loss deferrals of $(468,007), which represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
16
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||||
2019(3) | $10.56 | 0.02 | 0.26 | 0.28 | (0.04) | (1.06) | (1.10) | $9.74 | 3.74% | 1.47%(4) | 0.49%(4) | 75% | $99,175 | ||
2018 | $13.16 | 0.01 | (1.73) | (1.72) | (0.11) | (0.77) | (0.88) | $10.56 | (14.20)% | 1.47% | 0.09% | 140% | $66,042 | ||
2017 | $9.88 | (0.01) | 3.29 | 3.28 | — | — | — | $13.16 | 33.20% | 1.48% | (0.10)% | 122% | $76,484 | ||
2016 | $10.29 | (0.01) | (0.33) | (0.34) | (0.07) | — | (0.07) | $9.88 | (3.12)% | 1.47% | (0.07)% | 138% | $62,162 | ||
2015(5) | $10.00 | 0.02 | 0.27 | 0.29 | — | — | — | $10.29 | 2.70% | 1.47%(4) | 0.32%(4) | 118% | $65,428 | ||
G Class | |||||||||||||||
2019(3) | $10.72 | 0.10 | 0.23 | 0.33 | (0.18) | (1.06) | (1.24) | $9.81 | 4.54% | 0.00%(4)(6)(7) | 1.96%(4)(7) | 75% | $232,531 | ||
2018 | $13.25 | 0.20 | (1.76) | (1.56) | (0.20) | (0.77) | (0.97) | $10.72 | (12.95)% | 0.00%(6)(8) | 1.56%(8) | 140% | $140,057 | ||
2017 | $9.89 | 0.06 | 3.32 | 3.38 | (0.02) | — | (0.02) | $13.25 | 34.20% | 0.80%(9) | 0.58%(9) | 122% | $172,954 | ||
2016 | $10.30 | 0.01 | (0.33) | (0.32) | (0.09) | — | (0.09) | $9.89 | (2.97)% | 1.27% | 0.13% | 138% | $135,377 | ||
2015(5) | $10.00 | 0.04 | 0.26 | 0.30 | — | — | — | $10.30 | 2.80% | 1.27%(4) | 0.52%(4) | 118% | $133,255 | ||
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2019 (unaudited). |
(4) | Annualized. |
(5) | March 19, 2015 (fund inception) through November 30, 2015. |
(6) | Ratio was less than 0.005%. |
(7) | The annualized ratio of operating expenses to average net assets before expense waiver and the annualized ratio of net investment income (loss) to average net assets before expense waiver was 1.12% and 0.84%, respectively. |
(8) | The ratio of operating expenses to average net assets before expense waiver and the ratio of net investment income (loss) to average net assets before expense waiver was 1.12% and 0.44%, respectively. |
(9) | The ratio of operating expenses to average net assets before expense waiver and the ratio of net investment income (loss) to average net assets before expense waiver was 1.22% and 0.16%, respectively. |
See Notes to Financial Statements.
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.
19
Notes |
20
| ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2019 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92628 1907 | ||
Semiannual Report | |
May 31, 2019 | |
NT International Value Fund | |
Investor Class (ANTVX) | |
G Class (ANTYX) | |
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 |
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.
Fund Characteristics |
MAY 31, 2019 | |
Top Ten Holdings | % of net assets |
Royal Dutch Shell plc, B Shares | 4.2% |
HSBC Holdings plc | 2.7% |
GlaxoSmithKline plc | 2.2% |
Rio Tinto plc | 2.2% |
BHP Group plc | 1.9% |
Australia & New Zealand Banking Group Ltd. | 1.8% |
Allianz SE | 1.8% |
Zurich Insurance Group AG | 1.7% |
iShares MSCI EAFE ETF | 1.6% |
Novartis AG | 1.5% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 93.9% |
Exchange-Traded Funds | 3.2% |
Rights | —* |
Total Equity Exposure | 97.1% |
Temporary Cash Investments | 2.2% |
Temporary Cash Investments - Securities Lending Collateral | 1.7% |
Other Assets and Liabilities | (1.0)% |
*Category is less than 0.05% of total net assets. | |
Investments by Country | % of net assets |
United Kingdom | 20.7% |
Japan | 18.8% |
France | 10.1% |
Switzerland | 6.4% |
Germany | 5.9% |
Australia | 4.6% |
Spain | 4.2% |
Hong Kong | 4.1% |
Netherlands | 3.2% |
Italy | 3.2% |
Singapore | 2.8% |
Norway | 2.1% |
Other Countries | 7.8% |
Exchange-Traded Funds* | 3.2% |
Cash and Equivalents** | 2.9% |
*Category may increase exposure to the countries indicated. The Schedule of Investments provides additional information on the fund's portfolio holdings.
**Includes temporary cash investments, temporary cash investment - securities lending collateral and other assets and liabilities.
2
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 December 1, 2018 to May 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 12/1/18 | Ending Account Value 5/31/19 | Expenses Paid During Period(1) 12/1/18 - 5/31/19 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $985.30 | $6.43 | 1.30% |
G Class | $1,000 | $991.70 | $0.05 | 0.01% |
Hypothetical | ||||
Investor Class | $1,000 | $1,018.45 | $6.54 | 1.30% |
G Class | $1,000 | $1,024.88 | $0.05 | 0.01% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 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. |
3
Schedule of Investments |
MAY 31, 2019 (UNAUDITED)
Shares | Value | |||
COMMON STOCKS — 93.9% | ||||
Australia — 4.6% | ||||
Australia & New Zealand Banking Group Ltd. | 729,963 | $ | 14,086,886 | |
CIMIC Group Ltd. | 102,583 | 3,205,349 | ||
Commonwealth Bank of Australia(1) | 109,489 | 5,948,943 | ||
Fortescue Metals Group Ltd. | 185,808 | 1,029,880 | ||
JB Hi-Fi Ltd.(1) | 68,654 | 1,334,465 | ||
Santos Ltd. | 226,674 | 1,056,461 | ||
Super Retail Group Ltd. | 475,334 | 3,044,180 | ||
Telstra Corp. Ltd. | 1,519,903 | 3,846,185 | ||
Westpac Banking Corp. | 145,149 | 2,763,599 | ||
36,315,948 | ||||
Belgium — 0.4% | ||||
KBC Group NV | 16,065 | 1,055,180 | ||
Solvay SA | 19,640 | 1,837,251 | ||
2,892,431 | ||||
Brazil — 0.9% | ||||
Cia Siderurgica Nacional SA ADR | 341,059 | 1,422,216 | ||
JBS SA | 433,000 | 2,400,069 | ||
Petroleo Brasileiro SA ADR | 172,438 | 2,238,245 | ||
Vale SA ADR | 60,547 | 755,021 | ||
6,815,551 | ||||
China — 1.5% | ||||
China Construction Bank Corp., H Shares | 1,475,000 | 1,163,861 | ||
CITIC Ltd. | 2,227,000 | 3,017,861 | ||
Industrial & Commercial Bank of China Ltd., H Shares | 4,239,000 | 3,021,272 | ||
Lenovo Group Ltd. | 2,790,000 | 1,933,259 | ||
Weichai Power Co. Ltd., H Shares | 1,898,000 | 2,875,921 | ||
12,012,174 | ||||
Denmark — 0.4% | ||||
Carlsberg A/S, B Shares | 25,000 | 3,281,070 | ||
France — 10.1% | ||||
Air France-KLM(2) | 291,257 | 2,517,127 | ||
AXA SA | 72,230 | 1,776,710 | ||
BNP Paribas SA(1) | 180,974 | 8,248,453 | ||
Carrefour SA | 290,843 | 5,463,185 | ||
CNP Assurances | 317,474 | 6,801,767 | ||
Dassault Systemes SE | 16,898 | 2,504,313 | ||
Eiffage SA | 31,356 | 2,994,619 | ||
Engie SA(1) | 197,302 | 2,751,033 | ||
Kering SA | 9,272 | 4,816,294 | ||
L'Oreal SA | 21,632 | 5,805,409 | ||
Lagardere SCA(1) | 210,873 | 5,122,976 | ||
4
Shares | Value | |||
LVMH Moet Hennessy Louis Vuitton SE | 10,893 | $ | 4,127,224 | |
Metropole Television SA | 60,877 | 1,094,912 | ||
Orange SA | 101,648 | 1,588,777 | ||
Peugeot SA | 331,353 | 7,385,085 | ||
Sanofi | 68,660 | 5,544,924 | ||
TOTAL SA | 231,701 | 11,985,283 | ||
80,528,091 | ||||
Germany — 5.9% | ||||
Allianz SE | 62,704 | 13,927,450 | ||
BASF SE | 35,650 | 2,353,984 | ||
Bayer AG | 37,355 | 2,203,324 | ||
Daimler AG | 38,000 | 1,971,511 | ||
Deutsche Telekom AG | 545,980 | 9,215,387 | ||
Dialog Semiconductor plc(2) | 52,732 | 1,676,810 | ||
Hamburger Hafen und Logistik AG | 38,203 | 907,227 | ||
HOCHTIEF AG | 11,045 | 1,311,670 | ||
HUGO BOSS AG | 14,862 | 864,768 | ||
Merck KGaA | 10,930 | 1,055,632 | ||
MTU Aero Engines AG | 13,972 | 3,021,084 | ||
RTL Group SA | 16,868 | 805,406 | ||
RWE AG | 221,123 | 5,523,359 | ||
Siltronic AG | 33,494 | 2,298,560 | ||
47,136,172 | ||||
Hong Kong — 4.1% | ||||
BOC Hong Kong Holdings Ltd. | 441,500 | 1,691,370 | ||
Champion REIT | 1,106,000 | 899,268 | ||
CK Asset Holdings Ltd. | 211,500 | 1,526,154 | ||
CLP Holdings Ltd. | 581,000 | 6,568,412 | ||
Hong Kong Exchanges & Clearing Ltd. | 43,100 | 1,366,951 | ||
Kerry Properties Ltd. | 444,000 | 1,682,835 | ||
Link REIT | 574,500 | 6,887,212 | ||
Sands China Ltd. | 1,094,000 | 4,940,816 | ||
Swire Properties Ltd. | 353,600 | 1,454,474 | ||
Wharf Holdings Ltd. (The) | 2,059,000 | 5,255,284 | ||
32,272,776 | ||||
India — 0.3% | ||||
Indiabulls Housing Finance Ltd. | 78,257 | 883,213 | ||
Tata Power Co. Ltd. (The) | 1,839,312 | 1,818,379 | ||
2,701,592 | ||||
Ireland — 0.2% | ||||
Bank of Ireland Group plc | 344,784 | 1,837,177 | ||
Israel — 1.0% | ||||
Bank Leumi Le-Israel BM | 266,376 | 1,786,470 | ||
Mizrahi Tefahot Bank Ltd. | 79,804 | 1,744,597 | ||
Nice Ltd.(2) | 12,419 | 1,732,742 | ||
Wix.com Ltd.(2) | 18,000 | 2,472,120 | ||
7,735,929 | ||||
5
Shares | Value | |||
Italy — 3.2% | ||||
Eni SpA | 661,073 | $ | 9,972,917 | |
EXOR NV | 110,759 | 6,941,754 | ||
Fiat Chrysler Automobiles NV | 219,100 | 2,789,981 | ||
Unipol Gruppo SpA | 796,613 | 3,666,617 | ||
UnipolSai Assicurazioni SpA(1) | 778,996 | 1,895,943 | ||
25,267,212 | ||||
Japan — 18.8% | ||||
Astellas Pharma, Inc. | 348,300 | 4,658,751 | ||
Bandai Namco Holdings, Inc. | 15,000 | 736,621 | ||
Brother Industries Ltd. | 248,400 | 4,214,063 | ||
Chugai Pharmaceutical Co. Ltd. | 34,700 | 2,312,424 | ||
Daiwa Securities Group, Inc. | 506,100 | 2,209,989 | ||
Eisai Co. Ltd. | 50,000 | 2,932,605 | ||
FANUC Corp. | 26,900 | 4,534,619 | ||
Honda Motor Co. Ltd. | 143,000 | 3,524,801 | ||
Hoya Corp. | 64,500 | 4,463,864 | ||
Isuzu Motors Ltd. | 446,900 | 4,878,042 | ||
KDDI Corp. | 354,400 | 9,102,774 | ||
Kirin Holdings Co. Ltd. | 64,100 | 1,390,306 | ||
Marubeni Corp. | 760,700 | 4,774,612 | ||
Mazda Motor Corp. | 146,600 | 1,422,576 | ||
Mebuki Financial Group, Inc. | 1,826,500 | 4,584,331 | ||
Mitsubishi Chemical Holdings Corp. | 676,900 | 4,426,128 | ||
Mitsubishi Corp. | 133,900 | 3,479,565 | ||
Mitsubishi UFJ Financial Group, Inc. | 1,273,800 | 5,877,283 | ||
Mitsui & Co. Ltd. | 108,400 | 1,667,965 | ||
Mizuho Financial Group, Inc. | 1,612,100 | 2,274,415 | ||
Nikon Corp. | 228,900 | 3,125,988 | ||
Nippon Telegraph & Telephone Corp. | 71,600 | 3,204,087 | ||
NTT DOCOMO, Inc. | 248,400 | 5,698,540 | ||
Oji Holdings Corp. | 186,900 | 961,856 | ||
ORIX Corp. | 393,900 | 5,546,832 | ||
Sawai Pharmaceutical Co. Ltd. | 48,500 | 2,496,970 | ||
Shionogi & Co. Ltd. | 61,300 | 3,338,357 | ||
Shizuoka Bank Ltd. (The) | 736,300 | 5,789,856 | ||
Sony Corp. | 62,400 | 3,001,389 | ||
Sumitomo Chemical Co. Ltd. | 587,800 | 2,525,137 | ||
Sumitomo Mitsui Financial Group, Inc. | 136,700 | 4,752,785 | ||
Suzuken Co. Ltd. | 42,300 | 2,595,565 | ||
Suzuki Motor Corp. | 137,300 | 6,539,913 | ||
Takeda Pharmaceutical Co., Ltd. | 166,500 | 5,612,863 | ||
Teijin Ltd. | 152,700 | 2,483,516 | ||
Tokyo Electric Power Co. Holdings, Inc.(2) | 684,000 | 3,509,924 | ||
Toyota Motor Corp. | 204,300 | 12,034,532 | ||
Trend Micro, Inc. | 42,500 | 1,907,645 | ||
6
Shares | Value | |||
TS Tech Co. Ltd. | 32,800 | $ | 799,837 | |
149,391,326 | ||||
Netherlands — 3.2% | ||||
ABN AMRO Group NV CVA | 306,013 | 6,458,363 | ||
ASR Nederland NV | 134,117 | 5,077,862 | ||
Coca-Cola European Partners plc | 116,192 | 6,437,037 | ||
ING Groep NV | 109,241 | 1,179,314 | ||
Koninklijke Ahold Delhaize NV | 73,751 | 1,657,295 | ||
NN Group NV | 118,711 | 4,502,889 | ||
25,312,760 | ||||
New Zealand — 0.8% | ||||
a2 Milk Co. Ltd.(2) | 343,854 | 3,546,097 | ||
Spark New Zealand Ltd. | 1,051,315 | 2,619,718 | ||
6,165,815 | ||||
Norway — 2.1% | ||||
Aker BP ASA | 23,774 | 638,579 | ||
Equinor ASA | 411,207 | 7,859,003 | ||
Salmar ASA | 52,378 | 2,393,155 | ||
Telenor ASA | 294,472 | 6,050,731 | ||
16,941,468 | ||||
Portugal — 0.7% | ||||
EDP - Energias de Portugal SA | 1,577,471 | 5,728,849 | ||
Singapore — 2.8% | ||||
CapitaLand Commercial Trust | 971,100 | 1,364,404 | ||
ComfortDelGro Corp. Ltd. | 2,967,400 | 5,314,338 | ||
Oversea-Chinese Banking Corp. Ltd. | 742,100 | 5,711,180 | ||
Singapore Technologies Engineering Ltd. | 930,000 | 2,647,201 | ||
United Overseas Bank Ltd. | 410,300 | 7,014,537 | ||
22,051,660 | ||||
South Korea — 1.1% | ||||
Daelim Industrial Co. Ltd. | 26,533 | 2,302,335 | ||
Hanwha Corp. | 50,484 | 1,081,225 | ||
Samsung Electronics Co. Ltd. | 103,270 | 3,665,821 | ||
Shinhan Financial Group Co. Ltd. | 43,809 | 1,635,384 | ||
8,684,765 | ||||
Spain — 4.2% | ||||
Banco Bilbao Vizcaya Argentaria SA | 1,259,230 | 6,832,298 | ||
Banco Santander SA | 2,152,724 | 9,482,565 | ||
Iberdrola SA | 766,000 | 7,125,702 | ||
Mapfre SA | 1,743,023 | 5,115,762 | ||
Telefonica SA | 637,114 | 5,101,225 | ||
33,657,552 | ||||
Sweden — 0.4% | ||||
Lundin Petroleum AB | 112,599 | 3,055,425 | ||
Switzerland — 6.4% | ||||
Logitech International SA | 120,522 | 4,390,153 | ||
Nestle SA | 62,793 | 6,236,440 | ||
7
Shares | Value | |||
Novartis AG | 140,928 | $ | 12,103,313 | |
Roche Holding AG | 26,741 | 7,017,407 | ||
Swisscom AG | 12,815 | 6,133,116 | ||
UBS Group AG(2) | 179,540 | 2,065,469 | ||
Zurich Insurance Group AG | 41,194 | 13,347,125 | ||
51,293,023 | ||||
Taiwan — 0.1% | ||||
Taiwan High Speed Rail Corp. | 763,000 | 1,048,817 | ||
United Kingdom — 20.7% | ||||
3i Group plc | 599,140 | 7,947,024 | ||
Aggreko plc | 308,945 | 3,028,372 | ||
Anglo American plc | 371,437 | 8,913,387 | ||
BHP Group plc | 682,524 | 15,379,274 | ||
BP plc | 1,603,628 | 10,875,968 | ||
Evraz plc | 757,847 | 5,643,921 | ||
GlaxoSmithKline plc | 918,885 | 17,743,541 | ||
HSBC Holdings plc | 2,599,869 | 21,210,999 | ||
Legal & General Group plc | 2,475,291 | 8,041,010 | ||
Lloyds Banking Group plc | 4,317,009 | 3,116,162 | ||
Marks & Spencer Group plc | 519,733 | 1,471,498 | ||
Rio Tinto plc | 299,001 | 17,177,406 | ||
Royal Bank of Scotland Group plc | 1,072,498 | 2,894,191 | ||
Royal Dutch Shell plc, B Shares | 1,082,776 | 33,762,307 | ||
Sage Group plc (The) | 238,482 | 2,255,147 | ||
Segro plc | 133,701 | 1,178,327 | ||
Tate & Lyle plc | 329,105 | 3,007,012 | ||
Vodafone Group plc | 655,500 | 1,069,642 | ||
164,715,188 | ||||
TOTAL COMMON STOCKS (Cost $755,412,967) | 746,842,771 | |||
EXCHANGE-TRADED FUNDS — 3.2% | ||||
iShares China Large-Cap ETF | 73,000 | 2,947,010 | ||
iShares MSCI EAFE ETF | 206,000 | 13,060,400 | ||
iShares MSCI EAFE Value ETF(1) | 97,000 | 4,557,060 | ||
iShares MSCI Japan ETF | 92,000 | 4,850,240 | ||
TOTAL EXCHANGE-TRADED FUNDS (Cost $26,834,061) | 25,414,710 | |||
RIGHTS† | ||||
United Kingdom† | ||||
Marks & Spencer Group plc(2) (Cost $—) | 103,947 | 51,252 | ||
TEMPORARY CASH INVESTMENTS — 2.2% | ||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.00%, 4/30/20 - 2/15/48, valued at $16,316,132), in a joint trading account at 2.30%, dated 5/31/19, due 6/3/19 (Delivery value $15,999,660) | 15,996,594 | |||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.25%, 11/15/27, valued at $1,729,379), at 1.25%, dated 5/31/19, due 6/3/19 (Delivery value $1,693,176) | 1,693,000 | |||
8
Shares | Value | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 11,135 | $ | 11,135 | |
TOTAL TEMPORARY CASH INVESTMENTS (Cost $17,700,729) | 17,700,729 | |||
TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL(3) — 1.7% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio (Cost $13,228,078) | 13,228,078 | 13,228,078 | ||
TOTAL INVESTMENT SECURITIES — 101.0% (Cost $813,175,835) | 803,237,540 | |||
OTHER ASSETS AND LIABILITIES — (1.0)% | (7,754,911 | ) | ||
TOTAL NET ASSETS — 100.0% | $ | 795,482,629 | ||
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Financials | 28.2 | % |
Energy | 10.3 | % |
Health Care | 9.3 | % |
Consumer Discretionary | 8.6 | % |
Materials | 8.1 | % |
Communication Services | 7.6 | % |
Industrials | 6.3 | % |
Consumer Staples | 5.3 | % |
Utilities | 4.1 | % |
Information Technology | 3.5 | % |
Real Estate | 2.6 | % |
Exchange-Traded Funds | 3.2 | % |
Cash and Equivalents* | 2.9 | % |
*Includes temporary cash investments, temporary cash investment - securities lending collateral and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
CVA | - | Certificaten Van Aandelen |
† | Category is less than 0.05% of total net assets. |
(1) | Security, or a portion thereof, is on loan. At the period end, the aggregate value of securities on loan was $14,501,791. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers. |
(2) | Non-income producing. |
(3) | Investment of cash collateral from securities on loan. At the period end, the aggregate market value of the collateral held by the fund was $15,285,735, which includes securities collateral of $2,057,657. |
See Notes to Financial Statements.
9
Statement of Assets and Liabilities |
MAY 31, 2019 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $799,947,757) | $ | 790,009,462 | |
Investment made with cash collateral received for securities on loan, at value (cost of $13,228,078) | 13,228,078 | ||
Total investment securities, at value (cost of $813,175,835) | 803,237,540 | ||
Foreign currency holdings, at value (cost of $566,712) | 568,471 | ||
Receivable for investments sold | 260,619 | ||
Dividends and interest receivable | 8,370,359 | ||
Securities lending receivable | 53,784 | ||
812,490,773 | |||
Liabilities | |||
Payable for collateral received for securities on loan | 13,228,078 | ||
Payable for investments purchased | 2,310,393 | ||
Payable for capital shares redeemed | 1,281,292 | ||
Accrued management fees | 188,381 | ||
17,008,144 | |||
Net Assets | $ | 795,482,629 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 881,766,349 | |
Distributable earnings | (86,283,720 | ) | |
$ | 795,482,629 | ||
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $167,733,219 | 19,457,922 | $8.62 | |||
G Class, $0.01 Par Value | $627,749,410 | 72,436,522 | $8.67 | |||
See Notes to Financial Statements.
10
Statement of Operations |
FOR THE SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $1,814,871) | $ | 21,984,018 | |
Interest | 82,779 | ||
Securities lending, net | 69,755 | ||
22,136,552 | |||
Expenses: | |||
Management fees | 4,110,535 | ||
Directors' fees and expenses | 11,212 | ||
Other expenses | 20,220 | ||
4,141,967 | |||
Fees waived - G Class | (2,993,341 | ) | |
1,148,626 | |||
Net investment income (loss) | 20,987,926 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | (40,659,161 | ) | |
Foreign currency translation transactions | (77,604 | ) | |
(40,736,765 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | 11,025,217 | ||
Translation of assets and liabilities in foreign currencies | 24,431 | ||
11,049,648 | |||
Net realized and unrealized gain (loss) | (29,687,117 | ) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (8,699,191 | ) |
See Notes to Financial Statements.
11
Statement of Changes in Net Assets |
SIX MONTHS ENDED MAY 31, 2019 (UNAUDITED) AND YEAR ENDED NOVEMBER 30, 2018 | ||||||
Increase (Decrease) in Net Assets | May 31, 2019 | November 30, 2018 | ||||
Operations | ||||||
Net investment income (loss) | $ | 20,987,926 | $ | 31,448,647 | ||
Net realized gain (loss) | (40,736,765 | ) | 10,420,012 | |||
Change in net unrealized appreciation (depreciation) | 11,049,648 | (144,941,414 | ) | |||
Net increase (decrease) in net assets resulting from operations | (8,699,191 | ) | (103,072,755 | ) | ||
Distributions to Shareholders | ||||||
From earnings: | ||||||
Investor Class | (4,559,475 | ) | (7,142,667 | ) | ||
G Class | (25,029,348 | ) | (25,397,074 | ) | ||
Decrease in net assets from distributions | (29,588,823 | ) | (32,539,741 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (1,840,045 | ) | 18,264,749 | |||
Net increase (decrease) in net assets | (40,128,059 | ) | (117,347,747 | ) | ||
Net Assets | ||||||
Beginning of period | 835,610,688 | 952,958,435 | ||||
End of period | $ | 795,482,629 | $ | 835,610,688 | ||
See Notes to Financial Statements.
12
Notes to Financial Statements |
MAY 31, 2019 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. NT International Value Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek long-term capital growth. The fund 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 Investor Class and G Class.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value 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.
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.
13
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Securities lending income is net of fees and rebates earned by the lending agent for its services.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The fund may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Repurchase Agreements — The fund may enter into repurchase agreements with institutions that American Century Investment Management, Inc. (ACIM) (the investment advisor) has determined are creditworthy pursuant to criteria adopted by the Board of Directors. The fund requires that the collateral, represented by securities, received in a repurchase transaction be transferred to the custodian in a manner sufficient to enable the fund to obtain those securities in the event of a default under the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value, including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts owed to the fund under each repurchase agreement.
Joint Trading Account — Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds in the American Century Investments family of funds, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
Indemnifications — Under the corporation’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
14
Securities Lending — Securities are lent to qualified financial institutions and brokers. State Street Bank & Trust Co. serves as securities lending agent to the fund pursuant to a Securities Lending Agreement. The lending of securities exposes the fund to risks such as: the borrowers may fail to return the loaned securities, the borrowers may not be able to provide additional collateral, the fund may experience delays in recovery of the loaned securities or delays in access to collateral, or the fund may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge collateral in the form of cash and/or securities. The lending agent has agreed to indemnify the fund in the case of default of any securities borrowed. Cash collateral received is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund registered under the 1940 Act. The loans may also be secured by U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. By lending securities, the fund seeks to increase its net investment income through the receipt of interest and fees. Such income is reflected separately within the Statement of Operations. The value of loaned securities and related collateral outstanding at period end, if any, are shown on a gross basis within the Schedule of Investments and Statement of Assets and Liabilities.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of May 31, 2019.
Remaining Contractual Maturity of Agreements | ||||||||||||
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | ||||||||
Securities Lending Transactions(1) | ||||||||||||
Common Stocks | $ | 13,178,657 | — | — | — | $ | 13,178,657 | |||||
Exchange-Traded Funds | 49,421 | — | — | — | 49,421 | |||||||
Total Borrowings | $ | 13,228,078 | — | — | — | $ | 13,228,078 | |||||
Gross amount of recognized liabilities for securities lending transactions | $ | 13,228,078 | ||||||||||
(1) | Amount represents the payable for cash collateral received for securities on loan. This will generally be in the Overnight and Continuous column as the securities are typically callable on demand. |
3. Fees and Transactions with Related Parties
Certain officers and directors of the corporation are also officers and/or directors of American Century Companies, Inc. (ACC). The corporation’s investment advisor, ACIM, the corporation's distributor, American Century Investment Services, Inc., and the corporation’s transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC. Various funds issued by American Century Asset Allocation Portfolios, Inc. own, in aggregate, 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) per class. 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 each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services, which may be provided indirectly through another American Century Investments mutual fund. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The rate of the fee is determined by applying a fee rate calculation formula. This formula takes into account the fund’s assets as well as certain assets, if any, of other clients of the investment advisor outside the American Century Investments family of funds (such as subadvised funds and separate accounts) that use very similar investment teams and strategies (strategy assets). The strategy assets of the fund also include the assets of International Value Fund, one fund in a series issued by the corporation. The investment advisor agreed to waive the G Class’s management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors.
15
The management fee schedule range and the effective annual management fee before and after waiver for each class for the period ended May 31, 2019 are as follows:
Effective Annual Management Fee | |||
Management Fee Schedule Range | Before Waiver | After Waiver | |
Investor Class | 1.100% to 1.300% | 1.29% | 1.29% |
G Class | 0.750% to 0.950% | 0.94% | 0.00% |
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. There were no interfund transactions during the period.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2019 were $294,225,681 and $319,759,145, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Six months ended May 31, 2019 | Year ended November 30, 2018 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class/Shares Authorized | 230,000,000 | 290,000,000 | ||||||||
Sold | 2,104,678 | $ | 18,408,548 | 3,651,240 | $ | 37,375,720 | ||||
Issued in reinvestment of distributions | 546,700 | 4,559,475 | 697,526 | 7,142,667 | ||||||
Redeemed | (7,548,802 | ) | (66,349,683 | ) | (2,992,499 | ) | (28,821,565 | ) | ||
(4,897,424 | ) | (43,381,660 | ) | 1,356,267 | 15,696,822 | |||||
G Class/Shares Authorized | 800,000,000 | 710,000,000 | ||||||||
Sold | 16,535,890 | 146,911,593 | 7,898,598 | 78,787,132 | ||||||
Issued in reinvestment of distributions | 3,004,724 | 25,029,348 | 2,480,183 | 25,397,074 | ||||||
Redeemed | (14,768,507 | ) | (130,399,326 | ) | (9,819,811 | ) | (101,616,279 | ) | ||
4,772,107 | 41,541,615 | 558,970 | 2,567,927 | |||||||
Net increase (decrease) | (125,317 | ) | $ | (1,840,045 | ) | 1,915,237 | $ | 18,264,749 | ||
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. |
16
• | 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 | $ | 13,324,639 | $ | 733,518,132 | — | |||
Exchange-Traded Funds | 25,414,710 | — | — | |||||
Rights | — | 51,252 | — | |||||
Temporary Cash Investments | 11,135 | 17,689,594 | — | |||||
Temporary Cash Investments - Securities Lending Collateral | 13,228,078 | — | — | |||||
$ | 51,978,562 | $ | 751,258,978 | — | ||||
7. 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 in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 818,767,555 | |
Gross tax appreciation of investments | $ | 45,445,023 | |
Gross tax depreciation of investments | (60,975,038 | ) | |
Net tax appreciation (depreciation) of investments | $ | (15,530,015 | ) |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of November 30, 2018, the fund had accumulated short-term capital losses of $(46,396,868), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
17
Financial Highlights |
For a Share Outstanding Throughout the Years Ended November 30 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2019(3) | $9.00 | 0.18 | (0.32) | (0.14) | (0.24) | $8.62 | (1.47)% | 1.30%(4) | 4.16%(4) | 37% | $167,733 | ||
2018 | $10.53 | 0.25 | (1.47) | (1.22) | (0.31) | $9.00 | (11.95)% | 1.29% | 2.48% | 76% | $219,273 | ||
2017 | $8.73 | 0.24 | 1.83 | 2.07 | (0.27) | $10.53 | 24.32% | 1.29% | 2.44% | 79% | $242,242 | ||
2016 | $9.24 | 0.25 | (0.56) | (0.31) | (0.20) | $8.73 | (3.42)% | 1.30% | 2.88% | 81% | $201,138 | ||
2015(5) | $10.00 | 0.20 | (0.96) | (0.76) | — | $9.24 | (7.60)% | 1.30%(4) | 2.95%(4) | 55% | $194,181 | ||
G Class | |||||||||||||
2019(3) | $9.11 | 0.24 | (0.33) | (0.09) | (0.35) | $8.67 | (0.83)% | 0.01%(4)(6) | 5.45%(4)(6) | 37% | $627,749 | ||
2018 | $10.59 | 0.38 | (1.48) | (1.10) | (0.38) | $9.11 | (10.79)% | 0.01%(7) | 3.76%(7) | 76% | $616,338 | ||
2017 | $8.75 | 0.29 | 1.84 | 2.13 | (0.29) | $10.59 | 24.99% | 0.69%(8) | 3.04%(8) | 79% | $710,717 | ||
2016 | $9.25 | 0.26 | (0.55) | (0.29) | (0.21) | $8.75 | (3.16)% | 1.10% | 3.08% | 81% | $586,173 | ||
2015(5) | $10.00 | 0.21 | (0.96) | (0.75) | — | $9.25 | (7.50)% | 1.10%(4) | 3.15%(4) | 55% | $544,369 | ||
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(3) | Six months ended May 31, 2019 (unaudited). |
(4) | Annualized. |
(5) | March 19, 2015 (fund inception) through November 30, 2015. |
(6) | The annualized ratio of operating expenses to average net assets before expense waiver and the annualized ratio of net investment income (loss) to average net assets before expense waiver was 0.95% and 4.51%, respectively. |
(7) | The ratio of operating expenses to average net assets before expense waiver and the ratio of net investment income (loss) to average net assets before expense waiver was 0.94% and 2.83%, respectively. |
(8) | The ratio of operating expenses to average net assets before expense waiver and the ratio of net investment income (loss) to average net assets before expense waiver was 1.04% and 2.69%, respectively. |
See Notes to Financial Statements.
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.
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| ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2019 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-92629 1907 | ||
Semiannual Report | |
May 31, 2019 | |
NT Non-U.S. Intrinsic Value Fund | |
Investor Class (ANTUX) | |
G Class (ANTGX) | |
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 |
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.
Fund Characteristics |
MAY 31, 2019 | |
Top Ten Holdings | % of net assets |
Mitsubishi UFJ Financial Group, Inc. | 4.4% |
Sanofi | 4.4% |
Kingfisher plc | 4.2% |
Barclays plc | 3.9% |
Babcock International Group plc | 3.4% |
Aegon NV | 3.4% |
Hyundai Motor Co. | 3.3% |
BNP Paribas SA | 3.3% |
Surgutneftegas PJSC Preference Shares | 3.2% |
Nissan Motor Co. Ltd. | 3.2% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 94.3% |
Exchange-Traded Funds | 3.0% |
Total Equity Exposure | 97.3% |
Temporary Cash Investments | 3.6% |
Other Assets and Liabilities | (0.9)% |
Investments by Country | % of net assets |
Japan | 20.7% |
United Kingdom | 15.2% |
France | 10.5% |
South Korea | 10.1% |
Netherlands | 9.4% |
Russia | 7.0% |
Italy | 5.6% |
Mexico | 3.6% |
Germany | 3.3% |
Brazil | 2.3% |
Switzerland | 2.3% |
Other Countries | 4.3% |
Exchange-Traded Funds | 3.0% |
Cash and Equivalents* | 2.7% |
*Includes temporary cash investments and other assets and liabilities.
2
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 December 1, 2018 to May 31, 2019 (except as noted).
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.
3
Beginning Account Value 12/1/18 | Ending Account Value 5/31/19 | Expenses Paid During Period(1) 12/1/18 - 5/31/19 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $962.40(2) | $6.19(3) | 1.30% |
G Class | $1,000 | $968.60(2) | $0.00(3) | 0.00%(5) |
Hypothetical | ||||
Investor Class | $1,000 | $1,018.45(4) | $6.54(4) | 1.30% |
G Class | $1,000 | $1,024.93(4) | $0.00(4) | 0.00%(5) |
(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) | Ending account value based on actual return from December 6, 2018 (fund inception) through May 31, 2019. |
(3) | 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 177, the number of days in the period from December 6, 2018 (fund inception) through May 31, 2019, divided by 365, to reflect the period. Had the class been available for the full period, the expenses paid during the period would have been higher. |
(4) | Ending account value and expenses paid during the period assumes the fund had been available throughout the entire period and are calculated using the class's annualized expense ratio listed in the table above. |
(5) | Other expenses, which include directors' fees and expenses, did not exceed 0.005%. |
4
Schedule of Investments |
MAY 31, 2019 (UNAUDITED)
Shares | Value | |||
COMMON STOCKS — 94.3% | ||||
Belgium — 0.8% | ||||
Ontex Group NV | 175,239 | $ | 2,985,869 | |
Brazil — 2.3% | ||||
Embraer SA ADR | 429,402 | 8,257,401 | ||
China — 1.7% | ||||
PetroChina Co. Ltd., H Shares | 11,244,000 | 6,270,356 | ||
France — 10.5% | ||||
BNP Paribas SA | 258,666 | 11,789,508 | ||
Renault SA | 77,801 | 4,672,043 | ||
Sanofi | 197,299 | 15,933,701 | ||
Societe Generale SA | 219,403 | 5,492,745 | ||
37,887,997 | ||||
Germany — 3.3% | ||||
Commerzbank AG | 1,365,339 | 9,617,134 | ||
Leoni AG(1) | 149,582 | 2,338,196 | ||
11,955,330 | ||||
Italy — 5.6% | ||||
Eni SpA | 696,721 | 10,510,701 | ||
Saras SpA | 3,286,845 | 4,713,752 | ||
UniCredit SpA | 425,232 | 4,824,900 | ||
20,049,353 | ||||
Japan — 20.7% | ||||
Haseko Corp. | 848,700 | 8,408,939 | ||
Hazama Ando Corp. | 248,300 | 1,620,798 | ||
Iida Group Holdings Co. Ltd. | 494,300 | 7,809,408 | ||
Mazda Motor Corp. | 660,400 | 6,408,386 | ||
Mitsubishi UFJ Financial Group, Inc. | 3,468,800 | 16,004,962 | ||
Mizuho Financial Group, Inc. | 3,832,900 | 5,407,609 | ||
Nippon Television Holdings, Inc. | 378,600 | 5,413,070 | ||
Nissan Motor Co. Ltd. | 1,690,400 | 11,437,568 | ||
NOK Corp. | 163,700 | 2,099,885 | ||
Sumitomo Mitsui Financial Group, Inc. | 156,200 | 5,430,760 | ||
Token Corp. | 23,000 | 1,336,740 | ||
TV Asahi Holdings Corp. | 124,800 | 1,982,043 | ||
Yamazen Corp. | 123,300 | 1,144,514 | ||
74,504,682 | ||||
Mexico — 3.6% | ||||
Cemex SAB de CV ADR(1) | 604,916 | 2,492,254 | ||
Fibra Uno Administracion SA de CV | 8,268,761 | 10,577,095 | ||
13,069,349 | ||||
Netherlands — 9.4% | ||||
Aegon NV | 2,656,910 | 12,127,995 | ||
5
Shares | Value | |||
AerCap Holdings NV(1) | 220,457 | $ | 9,880,883 | |
NN Group NV | 86,042 | 3,263,704 | ||
Signify NV | 326,954 | 8,735,883 | ||
34,008,465 | ||||
Russia — 7.0% | ||||
Gazprom PJSC ADR | 860,586 | 5,624,683 | ||
Gazprom PJSC | 2,473,915 | 8,122,327 | ||
Surgutneftegas PJSC Preference Shares | 18,555,623 | 11,482,388 | ||
25,229,398 | ||||
South Korea — 10.1% | ||||
Hana Financial Group, Inc. | 156,931 | 4,772,033 | ||
Hyundai Mobis Co. Ltd. | 50,355 | 9,157,092 | ||
Hyundai Motor Co. | 106,179 | 11,977,780 | ||
Hyundai Wia Corp. | 36,467 | 1,197,291 | ||
Kia Motors Corp. | 263,311 | 8,684,332 | ||
Korea Electric Power Corp.(1) | 23,863 | 520,923 | ||
36,309,451 | ||||
Spain — 1.8% | ||||
Atresmedia Corp. de Medios de Comunicacion SA | 353,970 | 1,721,139 | ||
Tecnicas Reunidas SA | 183,751 | 4,596,016 | ||
6,317,155 | ||||
Switzerland — 2.3% | ||||
Credit Suisse Group AG(1) | 716,407 | 8,117,350 | ||
United Kingdom — 15.2% | ||||
Babcock International Group plc | 2,189,717 | 12,425,328 | ||
Barclays plc | 7,483,003 | 14,143,586 | ||
Capita plc(1) | 4,702,631 | 6,654,229 | ||
Kingfisher plc | 5,609,787 | 15,136,261 | ||
Standard Chartered plc (London) | 752,287 | 6,544,613 | ||
54,904,017 | ||||
TOTAL COMMON STOCKS (Cost $358,308,265) | 339,866,173 | |||
EXCHANGE-TRADED FUNDS — 3.0% | ||||
iShares MSCI EAFE Value ETF (Cost $11,465,134) | 229,602 | 10,786,702 | ||
TEMPORARY CASH INVESTMENTS — 3.6% | ||||
Repurchase Agreement, BMO Capital Markets Corp., (collateralized by various U.S. Treasury obligations, 1.125% - 3.00%, 4/30/20 - 2/15/48, valued at $11,884,574), in a joint trading account at 2.30%, dated 5/31/19, due 6/3/19 (Delivery value $11,654,058) | 11,651,824 | |||
Repurchase Agreement, Fixed Income Clearing Corp., (collateralized by various U.S. Treasury obligations, 2.25%, 11/15/27, valued at $1,261,844), at 1.25%, dated 5/31/19, due 6/3/19 (Delivery value $1,233,128) | 1,233,000 | |||
6
Shares | Value | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 8,282 | $ | 8,282 | |
TOTAL TEMPORARY CASH INVESTMENTS (Cost $12,893,106) | 12,893,106 | |||
TOTAL INVESTMENT SECURITIES — 100.9% (Cost $382,666,505) | 363,545,981 | |||
OTHER ASSETS AND LIABILITIES — (0.9)% | (3,199,572 | ) | ||
TOTAL NET ASSETS — 100.0% | $ | 360,346,409 | ||
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Financials | 29.9 | % |
Consumer Discretionary | 25.2 | % |
Energy | 14.2 | % |
Industrials | 13.4 | % |
Health Care | 4.4 | % |
Real Estate | 2.9 | % |
Communication Services | 2.6 | % |
Consumer Staples | 0.8 | % |
Materials | 0.7 | % |
Utilities | 0.2 | % |
Exchange-Traded Funds | 3.0 | % |
Cash and Equivalents* | 2.7 | % |
*Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
(1) | Non-income producing. |
See Notes to Financial Statements.
7
Statement of Assets and Liabilities |
MAY 31, 2019 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $382,666,505) | $ | 363,545,981 | |
Foreign currency holdings, at value (cost of $608,884) | 610,880 | ||
Dividends and interest receivable | 2,909,284 | ||
Other assets | 814 | ||
367,066,959 | |||
Liabilities | |||
Payable for investments purchased | 5,451,351 | ||
Payable for capital shares redeemed | 1,146,428 | ||
Accrued management fees | 122,771 | ||
6,720,550 | |||
Net Assets | $ | 360,346,409 | |
Net Assets Consist of: | |||
Capital (par value and paid-in surplus) | $ | 374,020,452 | |
Distributable earnings | (13,674,043 | ) | |
$ | 360,346,409 | ||
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class, $0.01 Par Value | $105,773,145 | 11,037,225 | $9.58 | |||
G Class, $0.01 Par Value | $254,573,264 | 26,374,181 | $9.65 | |||
See Notes to Financial Statements.
8
Statement of Operations |
FOR THE PERIOD ENDED MAY 31, 2019 (UNAUDITED)(1) | |||
Investment Income (Loss) | |||
Income: | |||
Dividends (net of foreign taxes withheld of $1,144,185) | $ | 7,516,397 | |
Interest | 162,169 | ||
7,678,566 | |||
Expenses: | |||
Management fees | 1,913,249 | ||
Directors' fees and expenses | 3,730 | ||
Other expenses | 5,247 | ||
1,922,226 | |||
Fees waived - G Class | (1,212,418 | ) | |
709,808 | |||
Net investment income (loss) | 6,968,758 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | (30,141 | ) | |
Foreign currency translation transactions | (68,478 | ) | |
(98,619 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | (19,120,524 | ) | |
Translation of assets and liabilities in foreign currencies | 17,663 | ||
(19,102,861 | ) | ||
Net realized and unrealized gain (loss) | (19,201,480 | ) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (12,232,722 | ) |
(1) | December 6, 2018 (fund inception) through May 31, 2019. |
See Notes to Financial Statements.
9
Statement of Changes in Net Assets |
PERIOD ENDED MAY 31, 2019 (UNAUDITED)(1) | |||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net investment income (loss) | $ | 6,968,758 | |
Net realized gain (loss) | (98,619 | ) | |
Change in net unrealized appreciation (depreciation) | (19,102,861 | ) | |
Net increase (decrease) in net assets resulting from operations | (12,232,722 | ) | |
Distributions to Shareholders | |||
From earnings: | |||
Investor Class | (491,729 | ) | |
G Class | (949,592 | ) | |
Decrease in net assets from distributions | (1,441,321 | ) | |
Capital Share Transactions | |||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 374,020,452 | ||
Net increase (decrease) in net assets | 360,346,409 | ||
Net Assets | |||
End of period | $ | 360,346,409 | |
(1) | December 6, 2018 (fund inception) through May 31, 2019. |
See Notes to Financial Statements.
10
Notes to Financial Statements |
MAY 31, 2019 (UNAUDITED)
1. Organization
American Century World Mutual Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. NT Non-U.S. Intrinsic Value Fund (the fund) is one fund in a series issued by the corporation. The fund’s investment objective is to seek capital appreciation. The fund 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 Investor Class and G Class. All classes of the fund commenced sale on December 6, 2018, the fund's inception date.
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.
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.
11
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.
Distributions to Shareholders — Distributions from net investment income and net realized gains, if any, are generally declared and paid annually. The fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the 1940 Act.
12
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., 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) per class. 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 each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services, which may be provided indirectly through another American Century Investments mutual fund. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The investment advisor agreed to waive the G Class’s management fee in its entirety. The investment advisor expects this waiver to remain in effect permanently and cannot terminate it without the approval of the Board of Directors.
The annual management fee for each class is as follows:
Investor Class | G Class |
1.30% | 0.00%(1) |
(1) | Annual management fee before waiver was 0.95%. |
Directors' Fees and Expenses — The Board of Directors is responsible for overseeing the investment advisor’s management and operations of the fund. The directors receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Directors. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. There were no interfund transactions during the period.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended May 31, 2019 were $593,339,363 and $223,535,822, respectively.
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5. Capital Share Transactions
Transactions in shares of the fund were as follows:
Period ended May 31, 2019(1) | |||||
Shares | Amount | ||||
Investor Class/Shares Authorized | 130,000,000 | ||||
Sold | 11,188,650 | $ | 111,814,230 | ||
Issued in reinvestment of distributions | 51,009 | 491,729 | |||
Redeemed | (202,434 | ) | (1,956,628 | ) | |
11,037,225 | 110,349,331 | ||||
G Class/Shares Authorized | 300,000,000 | ||||
Sold | 28,382,339 | 284,004,033 | |||
Issued in reinvestment of distributions | 98,301 | 949,592 | |||
Redeemed | (2,106,459 | ) | (21,282,504 | ) | |
26,374,181 | 263,671,121 | ||||
Net increase (decrease) | 37,411,406 | $ | 374,020,452 | ||
(1) | December 6, 2018 (fund inception) through May 31, 2019. |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | ||||||||
Brazil | $ | 8,257,401 | — | — | ||||
Mexico | 2,492,254 | $ | 10,577,095 | — | ||||
Netherlands | 9,880,883 | 24,127,582 | — | |||||
Other Countries | — | 284,530,958 | — | |||||
Exchange-Traded Funds | 10,786,702 | — | — | |||||
Temporary Cash Investments | 8,282 | 12,884,824 | — | |||||
$ | 31,425,522 | $ | 332,120,459 | — | ||||
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7. 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 in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
The fund invests in common stocks of small companies. Because of this, the fund may be subject to greater risk and market fluctuations than a fund investing in larger, more established companies.
The fund’s investment process may result in high portfolio turnover, which could mean high transaction costs, affecting both performance and capital gains tax liabilities to investors.
8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 382,666,505 | |
Gross tax appreciation of investments | $ | 11,939,213 | |
Gross tax depreciation of investments | (31,059,737 | ) | |
Net tax appreciation (depreciation) of investments | $ | (19,120,524 | ) |
The cost of investments for federal income tax purposes was the same as the cost for financial reporting purposes.
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Financial Highlights |
For a Share Outstanding Throughout the Period Indicated | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2019(3) | $10.00 | 0.14 | (0.52) | (0.38) | (0.04) | $9.58 | (3.76)% | 1.30%(4) | 2.93%(4) | 61% | $105,773 | ||
G Class | |||||||||||||
2019(3) | $10.00 | 0.21 | (0.52) | (0.31) | (0.04) | $9.65 | (3.14)% | 0.00%(4)(5)(6) | 4.23%(4)(6) | 61% | $254,573 | ||
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) | December 6, 2018 (fund inception) through May 31, 2019 (unaudited). |
(4) | Annualized. |
(5) | Ratio was less than 0.005%. |
(6) | The annualized ratio of operating expenses to average net assets before expense waiver and the annualized ratio of net investment income (loss) to average net assets before expense waiver was 0.95% and 3.28%, respectively. |
See Notes to Financial Statements.
Approval of Management Agreement |
The Fund’s Board of Directors unanimously approved the initial management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under Section 15(c) of the Investment Company Act, new contracts for investment advisory services are required to be approved by a majority of a fund’s independent directors/trustees and to be evaluated on an annual basis thereafter.
In advance of the Board’s consideration, the Advisor provided information concerning the fund. The materials circulated and the discussions held detailed the investment objective and strategy proposed to be utilized by the Advisor, the Fund’s characteristics and key attributes, the rationale for launching the Fund, the experience of the staff designated to manage the Fund, the proposed pricing, and the markets in which the Fund would be sold. The information considered and the discussions held included, but were not limited to:
• | the nature, extent, and quality of investment management, shareholder services, and other services to be provided by the Advisor to the Fund; |
• | the wide range of other programs and services the Advisor would provide to the Fund and its shareholders on a routine and non-routine basis; |
• | the Fund’s proposed investment objective and strategy, including a discussion of the Fund’s anticipated investment performance and proposed benchmark; |
• | the cost of owning the Fund compared to the cost of owning similar funds; |
• | the Advisor’s compliance policies, procedures, and regulatory experience; and |
• | any collateral benefits derived by the Advisor from the management of the Fund. |
American Century Investments’ funds utilize a unified management fee structure. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing, and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and Rule 12b-1 fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Advisor and Board believe the unified fee structure is a benefit to fund shareholders because it clearly discloses to shareholders the cost of owning fund shares, and because the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider and comparing the Fund’s unified fee to the total expense ratio of peer funds.
When considering the approval of the management agreement for the Fund, the independent Directors considered the entrepreneurial risk that the Advisor assumes in launching a new fund. In particular, they considered the effect of the unified management fee structure and the fact that the Advisor will assume a substantial part of the start-up costs of the Fund and the risk that the Fund will not grow to a level that will become profitable to the Advisor. The Board considered the position that the Fund would take in the lineup of the American Century Investments’ family of funds and the benefits to shareholders of existing funds of the broadened product offering. Finally, while not specifically discussed, but important in the decision to approve the management agreement, is the Directors’ familiarity with the Advisor. The Board oversees and evaluates on a continuous basis the nature and quality of all services the Advisor performs for other funds within the American Century Investments’ complex. As such, the Directors have confidence in the Advisor’s integrity and competence in providing services to the Fund.
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The Directors considered all of the information provided by the Advisor and the independent Directors’ independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Directors did not identify any single factor as being all-important or controlling, and each Director may have attributed different levels of importance to different factors. The independent Directors concluded that the overall arrangements between the Fund and the Advisor, as provided in the management agreement, were fair and reasonable in light of the services to be provided and should be approved.
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Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, 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.
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Notes |
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| ||
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century World Mutual Funds, Inc. | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2019 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-95206 1907 | ||
ITEM 2. CODE OF ETHICS.
Not applicable for semiannual report filings.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semiannual report filings.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semiannual report filings.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable for semiannual report filings.
ITEM 6. INVESTMENTS.
(a) | The schedule of investments is included as part of the report to stockholders filed under Item 1 of this Form. |
(b) | Not applicable. |
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
During the reporting period, there were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board.
ITEM 11. CONTROLS AND PROCEDURES.
(a) | The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report. |
(b) | There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)(1) | Not applicable for semiannual report filings. |
(a)(2) | Separate certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are filed and attached hereto as EX-99.CERT. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | A certification by the registrant’s chief executive officer and chief financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, is furnished and attached hereto as EX- 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | American Century World Mutual Funds, Inc. | |||
By: | /s/ Jonathan S. Thomas | |||
Name: | Jonathan S. Thomas | |||
Title: | President | |||
Date: | July 30, 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: | July 30, 2019 | ||
By: | /s/ R. Wes Campbell | ||
Name: | R. Wes Campbell | ||
Title: | Treasurer and | ||
Chief Financial Officer | |||
(principal financial officer) | |||
Date: | July 30, 2019 | ||