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Common Annual Whole Returns for Interval Ended 6/30/2024
Since
Inception
Gross Expense
Class
Qtr(%)
1 12 months(%)
3 12 months(%)
5 12 months(%)
10 12 months(%)
Inception(%)
Date
Ratio(%)
Investor (MUTF:TWMIX)
4.82
14.20
-8.96
1.21
2.73
5.42
9/30/97
1.27
I
4.88
14.45
-8.76
1.39
2.92
7.55
1/28/99
1.07
R5
4.88
14.44
-8.78
1.39
2.93
3.39
4/10/17
1.07
R6
4.88
14.51
-8.64
1.53
3.08
3.88
7/26/13
0.92
MSCI Rising Markets Index
5.00
12.55
-5.07
3.10
2.79
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Information offered displays previous efficiency. Previous efficiency isn’t any assure of future outcomes. Present efficiency could also be greater or decrease than the efficiency proven. To acquire efficiency information present to the newest month finish, please go to www.americancentury.com/efficiency. Funding return and share worth will fluctuate, and redemption worth could also be roughly than authentic price. Information assumes reinvestment of dividends and capital positive factors. Returns for durations lower than one yr usually are not annualized. For details about different share courses accessible, please seek the advice of the prospectus. There isn’t any assure that the funding aims shall be met. Dividends and yields characterize previous efficiency and there’s no assure that they’ll proceed to be paid.
Historic efficiency for the R5 Class previous to its inception relies on the efficiency of I Class shares, which have the identical bills because the R5 Class. Pre-inception variations in R5 Class and I Class efficiency are primarily based on rounding.
Expense ratio is as of the fund’s present prospectus. The I Class minimal funding quantity is$5 million($3 million for endowments and foundations) per fund. The R5 Share Class is offered solely to contributors in group employer-sponsored retirement plans the place a monetary middleman gives recordkeeping companies to plan contributors.
Durations better than one yr have been annualized.
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Portfolio Evaluation
Rising markets (‘EM’) shares superior and outperformed developed markets equities. EM shares obtained a lift from synthetic intelligence (‘AI’)-related shares, particularly in June. Taiwan and China led markets greater, fueled by AI and expectations for accelerating demand for chips from information facilities and edge or on-device AI. The Chinese language market rebounded amid supportive coverage measures and stronger financial information.
India, South Africa rallied. The incumbent Indian prime minister’s victory lifted investor sentiment round coverage continuity. South African shares rallied on information of a post-election unified authorities. Conversely, markets in Brazil and Mexico declined. Brazil struggled with hotter-than-expected inflation, whereas political uncertainty weighed on Mexican shares amid considerations across the ruling occasion’s concentrated energy.
Positioning in well being care dampened returns. An obese to the sector relative to the benchmark and inventory choice detracted, led by weak spot for drug producers Solar Pharmaceutical Industries and Samsung Biologics. We consider that Samsung Biologics, particularly, can capitalize on rising demand for biologics contract growth and manufacturing, given its world-leading capability.
The industrials sector damage relative outcomes. Inventory choice weighed on returns. The most important particular person sector detractors included plane producer Embraer (ERJ), battery maker Up to date Amperex Expertise Co. and photo voltaic inverter and power storage system provider Sungrow Energy Provide. Embraer shares pulled again as potential catalysts, similar to stronger orders for business and protection plane, have but to materialize.
Chip shares drove relative positive factors. Inventory choice and a good obese within the semiconductors and semiconductor gear {industry} relative to the benchmark added substantial worth through the quarter. South Korea-based SK hynix (OTCPK:HXSCF) and fellow chipmaker Taiwan Semiconductor Manufacturing Co. (TSM) have been among the many main particular person contributors because the {industry} has benefited from bettering demand and a stronger outlook for AI chips and excessive bandwidth reminiscence.
Key Contributors
BIM Birlesik Magazalar (OTCPK:BMBRF). We consider the Turkish retailer’s constructive site visitors momentum supported shares, whereas strong outcomes confirmed robust execution, with industry-leading progress, market share positive factors and margin enchancment. Our analysis indicated BIM is nicely positioned for a slower client setting as the federal government goals to deliver down inflation.
SK hynix. Based on our analysis, robust excessive bandwidth reminiscence demand and a restoration in reminiscence costs following manufacturing cuts has fueled an improved reminiscence worth outlook and better worth assumptions. We predict SK Hynix’s dominance of the excessive bandwidth reminiscence market has supported shares amid raised earnings forecasts to replicate higher-than-expected chip costs.
Taiwan Semiconductor Manufacturing Co. Traders rewarded TSMC’s strong earnings visibility from increasing generative synthetic intelligence demand and management in modern chips with rebounding margins. In our view, excessive utilization from superior nodes and potential worth hikes have the potential to drive additional progress.
High 10 Holdings(%)
Taiwan Semiconductor Manufacturing Co Ltd (TSM)
11.06
Tencent Holdings Ltd (OTCPK:TCEHY)
5.50
Samsung Electronics Co Ltd (OTCPK:SSNLF)
5.44
SK Hynix Inc (OTCPK:HXSCF)
3.37
Reliance Industries Ltd
2.82
ICICI Financial institution Ltd (IBN)
2.75
China Building Financial institution Corp (OTCPK:CICHY)
2.35
BIM Birlesik Magazalar AS (OTCPK:BMBRF)
1.94
Journey.com Group Ltd (TCOM)
1.89
BYD Co Ltd (OTCPK:BYDDF)
1.70
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As of 6/30/2024
The holdings listed shouldn’t be thought-about suggestions to buy or promote a selected safety. Fairness holdings are grouped to incorporate widespread shares, depository receipts, rights and warrants issued by the identical firm. Fund holdings topic to vary.
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Key Detractors
Cemex (CX). We consider the inventory’s weak spot was pushed by the drop within the Mexican fairness market and a few cooling in Mexican building exercise. We additionally suppose onshoring continues to assist the Mexican and U.S. economies and that extra infrastructure tasks for wanted housing and roads will possible drive additional cement demand progress.
Financial institution Rakyat Indonesia Persero (OTCPK:BKRKY). Shares of this Indonesian financial institution continued to say no from a current all-time excessive amid investor considerations about asset high quality, notably given headwinds within the microlending phase. Our analysis additionally indicated persistent above- common lending prices weighed on the inventory.
Sands China (OTCPK:SCHYY). The on line casino operator’s first-quarter outcomes missed analyst expectations attributable to unfavorable win charges on high-minimum wagers and disruptions from ongoing building. Consensus earnings estimates have been additionally adjusted decrease through the interval.
Notable Trades
InterGlobe Aviation (JOBY). Our analysis indicated low-cost Indian provider IndiGo has a commanding share of the underpenetrated home market amid a post-COVID-19 revival in passenger volumes, that are anticipated to double by 2030. We consider IndiGo stands to profit from robust fare developments, new airport developments and ongoing worldwide growth.
Up to date Amperex Expertise Co. Based on our analysis, regardless of market oversupply,CATL has maintainedprofitability by way of its expertise and price benefits.We consider CATL leads its international friends in expertise choices, price competitiveness and monetary stability within the new power automobile and power storage system battery markets.
Vale (VALE). Our analysis confirmed that the Brazil-based international mining large’s margins have come underneath stress, reflecting decrease iron ore costs and barely greater prices.
Localiza Hire a Automotive (OTCQX:LZRFY). We exited the Brazil-based automobile rental firm, given what we believed was uncertainty because of the lack of visibility on automobile costs(and thus depreciation). In our view, falling automobile costs may stop significant earnings growth within the foreseeable future.
Portfolio Positioning
The portfolio continues to put money into firms the place we consider financials are robust and bettering however share worth efficiency doesn’t totally replicate these elements.
Our outlook stays constructive. With inflation stress lessening and financial coverage easing in its early phases, we consider rising markets economies may develop greater than twice the speed of developed markets. Although the Federal Reserve’s (Fed’s) higher-for- longer stance has deterred aggressive strikes by EM central banks, we expect a gradual broadening of easing within the second half of the yr may very well be possible as inflation continues to reasonable.
China’s financial system received off to a superb begin, however the property market stays a headwind. China’s financial system grew sooner than anticipated within the first quarter. Nevertheless, information have proven some current indicators of softness, suggesting that the home demand restoration hasn’t totally discovered agency footing. Our analysis has indicated that the housing market continues to face downward worth pressures from extra provide. Although the path of property market coverage is encouraging, we expect housing exercise will possible stay weak by way of the top of the yr.
Electronics developments spur earnings progress in Asia. Sturdy exports from South Korea and Taiwan have been driving continued growth in electronics manufacturing exercise. We count on the build-out of synthetic intelligence infrastructure to stay a progress catalyst and have seen indicators of a restoration in common servers.
Latin American central banks have change into extra cautious. Political noise, inflation falling at a slower tempo and the Fed’s extra hawkish stance are influencing the banks’ measured method. Based on our analysis, broader progress has held up, and developments similar to commerce protectionism and sticky uncooked supplies’ costs have been constructive. Regardless of post-election volatility in Mexico, supportive financial elements, similar to close to shoring and remittances, stay in place, in our view. In Brazil, we consider financial exercise has additionally remained resilient with non-public consumption supported by the tightness within the labor market.
It’s best to contemplate the fund’s funding aims, dangers, and fees and bills fastidiously earlier than you make investments. The fund’s prospectus or abstract prospectus, which may be obtained at American Century Investments® Dwelling, accommodates this and different details about the fund, and must be learn fastidiously earlier than investing.
The opinions expressed are these of the portfolio funding group and aren’t any assure of the longer term efficiency of any American Century Investments portfolio. Statements relating to particular holdings characterize private views and compensation has not been obtained in reference to such views. This data is for an academic function solely and isn’t meant to function funding recommendation.
The knowledge is just not meant as a personalised advice or fiduciary recommendation and shouldn’t be relied upon for funding, accounting, authorized or tax recommendation.
Worldwide investing entails particular danger concerns, together with financial and political circumstances, inflation charges and forex fluctuations. Investing in rising markets might intensify these dangers.
The MSCI Rising Markets Index is a free float-adjusted market capitalization index that’s designed to measure fairness market efficiency of rising markets. Supply: MSCI. MSCI makes no categorical or implied warranties or representations and shall haven’t any legal responsibility in anyway with respect to any MSCI information contained herein. The MSCI information might not be additional redistributed or used to create indices or monetary merchandise. This report is just not authorised or produced by MSCI.
IN-FLY-92057 American Century Investments Providers, Inc., Distributor©2024 American Century Proprietary Holdings, Inc. All rights reserved.
Non-FDIC Insured Might Lose Worth No Financial institution Assure
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Authentic Put up
Editor’s Word: The abstract bullets for this text have been chosen by In search of Alpha editors.
Editor’s Word: This text discusses a number of securities that don’t commerce on a significant U.S. trade. Please pay attention to the dangers related to these shares.
