American Century Small Cap Value Fund

Investor Summary

The fund is managed by veteran portfolio managers Jeff John, CFA (with American Century since 1991, managing this fund since 2012) and Ryan Cope, CFA (with American Century since 2009, managing this fund since 2020). The management team has an average tenure of 9.7 years, providing consistent leadership and investment approach. Both managers bring extensive experience in small-cap value investing and fundamental analysis.

Fund Strategy

The American Century Small Cap Value Fund seeks long-term capital growth and income by investing in stocks of small-sized companies believed to be undervalued. The team seeks to identify leading, financially strong companies selling at a discount to fair market value using a disciplined, bottom-up fundamental research approach. The fund focuses on investing in high-quality, financially strong small-cap companies that are temporarily selling below their fair market value. The management team believes small-cap stocks are the least efficient segment of the market, offering opportunities for active management to generate attractive risk-adjusted returns. The fund aims to identify companies with attributes expected to increase returns, limit losses, and provide income over time. Income is a secondary objective to capital growth. The portfolio maintains a focus on financially strong companies with sustainable competitive advantages. The investment approach emphasizes thorough fundamental analysis to uncover undervalued opportunities in the small-cap universe.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
10.33%	3.85%	3.85%

Executive Summary

American Century's Small Cap Value Fund declined during Q1 2026 as geopolitical tensions from the Iran war and Strait of Hormuz closure drove oil prices higher while raising inflation concerns. The fund's significant energy overweight proved beneficial as oil and gas holdings rallied sharply on supply disruptions. Energy names Crescent Energy, Permian Resources, and Magnolia Oil & Gas were top contributors. The portfolio maintains concentrated exposure to regional banks, believing current valuations fail to reflect positive net interest income trends and that market fears of extended credit cycles are overstated. Industrial and materials holdings detracted, with professional services positions suffering from perceived AI disruption concerns that management views as unwarranted. The fund continues seeking quality small-cap companies trading below intrinsic value, maintaining overweights in financials and energy while avoiding health care and utilities. Portfolio positioning emphasizes higher-quality businesses serving affluent consumers and companies with strong pricing power and cash flow generation capabilities.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Apr 29 2026	2026 Q1	CEI, ENOV, GPK, MGY, PR, TNET	energy, financials, oil, Regional Banks, small caps, value	GPK TNET ENOV	Small-cap value fund benefited from energy overweight as Iran war drove oil prices higher, while maintaining conviction in undervalued regional banks despite market credit concerns. Professional services holdings suffered from AI disruption fears viewed as unwarranted. Portfolio seeks quality small-caps trading below intrinsic value with overweights in financials and energy.
Jan 23 2026	2025 Q4	AMKR, ARCB, ARW, AVT, AXS, BBWI, BC, BIRK, COLB, EEFT, ENOV, EVTC, GPK, HZO, MARA, OKLO, ONB, PATK, SSB, TKR, UMBF	banks, consumer discretionary, healthcare, industrials, semiconductors, small cap, value	-	Small cap value fund underperformed in Q4 due to healthcare underweight and materials positioning. Strong stock selection in technology, particularly Amkor Technology benefiting from AI packaging trends. Maintains overweight positions in banks, consumer discretionary, and industrials. Managers remain constructive on banking sector fundamentals and seek undervalued companies where quality exceeds current valuations.
Oct 19 2025	2025 Q3	ACLS, ASH, AXS, BBWI, BCO, CHX, COLD, EEFT, ENOV, EVTC, GMS, GPK, HD, ONB, SLB, SSB, TKR, UMBF, VC, WBS	banks, consumer, financials, industrials, semiconductors, small cap, value	-	Small Cap Value Fund underperformed in Q3 despite positive contributors like Brink's and Axcelis Technologies. The fund maintains significant overweight in undervalued financials, particularly banks positioned for net interest income inflection, while avoiding utilities and healthcare. Recent additions include Bath & Body Works and Ashland Global Holdings, both trading at steep discounts to historical valuations with strong cash flow generation potential.
Jul 22 2025	2025 Q2	ACLS, ASH, AXS, BBWI, BCO, CHX, COLD, EEFT, ENOV, EVTC, GMS, GPK, HD, ONB, SLB, SSB, TKR, UMBF, VC, WBS	banks, consumer discretionary, financials, industrials, Rate Cuts, small cap, value	-	Small Cap Value Fund underperformed in Q3 2025 despite Fed rate cuts, hurt by energy stock selection and overweight financials positioning. The Brink's Company and Axcelis Technologies were key contributors while Euronet Worldwide and Axis Capital detracted. Management maintains significant overweight in undervalued financials expecting net interest income inflection, with selective consumer discretionary exposure to higher-end markets.
Mar 31 2025	2025 Q1	ACLS, AXS, BCO, BECN, BLBD, CHX, CRGY, EMBCF, ENOV, EVTC, FLWO, FNB, GPK, MGY, ONB, SSB, TITN, TKR, TPG, WBS	Banking, energy, industrials, materials, small caps, value	-	American Century's Small Cap Value Fund outperformed its benchmark despite a 6.25% Q1 decline, driven by strong stock selection in energy and industrials. The portfolio maintains overweights in undervalued banks and quality industrials trading below historical multiples, while benefiting from solid execution at holdings like Axis Capital and strategic exits from appreciated positions.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Apr 29 2026

2026 Q1

CEI, ENOV, GPK, MGY, PR, TNET

energy, financials, oil, Regional Banks, small caps, value

GPK
TNET
ENOV

Small-cap value fund benefited from energy overweight as Iran war drove oil prices higher, while maintaining conviction in undervalued regional banks despite market credit concerns. Professional services holdings suffered from AI disruption fears viewed as unwarranted. Portfolio seeks quality small-caps trading below intrinsic value with overweights in financials and energy.

Jan 23 2026

2025 Q4

AMKR, ARCB, ARW, AVT, AXS, BBWI, BC, BIRK, COLB, EEFT, ENOV, EVTC, GPK, HZO, MARA, OKLO, ONB, PATK, SSB, TKR, UMBF

banks, consumer discretionary, healthcare, industrials, semiconductors, small cap, value

Small cap value fund underperformed in Q4 due to healthcare underweight and materials positioning. Strong stock selection in technology, particularly Amkor Technology benefiting from AI packaging trends. Maintains overweight positions in banks, consumer discretionary, and industrials. Managers remain constructive on banking sector fundamentals and seek undervalued companies where quality exceeds current valuations.

Oct 19 2025

2025 Q3

ACLS, ASH, AXS, BBWI, BCO, CHX, COLD, EEFT, ENOV, EVTC, GMS, GPK, HD, ONB, SLB, SSB, TKR, UMBF, VC, WBS

banks, consumer, financials, industrials, semiconductors, small cap, value

Small Cap Value Fund underperformed in Q3 despite positive contributors like Brink's and Axcelis Technologies. The fund maintains significant overweight in undervalued financials, particularly banks positioned for net interest income inflection, while avoiding utilities and healthcare. Recent additions include Bath & Body Works and Ashland Global Holdings, both trading at steep discounts to historical valuations with strong cash flow generation potential.

Jul 22 2025

2025 Q2

ACLS, ASH, AXS, BBWI, BCO, CHX, COLD, EEFT, ENOV, EVTC, GMS, GPK, HD, ONB, SLB, SSB, TKR, UMBF, VC, WBS

banks, consumer discretionary, financials, industrials, Rate Cuts, small cap, value

Small Cap Value Fund underperformed in Q3 2025 despite Fed rate cuts, hurt by energy stock selection and overweight financials positioning. The Brink's Company and Axcelis Technologies were key contributors while Euronet Worldwide and Axis Capital detracted. Management maintains significant overweight in undervalued financials expecting net interest income inflection, with selective consumer discretionary exposure to higher-end markets.

Mar 31 2025

2025 Q1

ACLS, AXS, BCO, BECN, BLBD, CHX, CRGY, EMBCF, ENOV, EVTC, FLWO, FNB, GPK, MGY, ONB, SSB, TITN, TKR, TPG, WBS

Banking, energy, industrials, materials, small caps, value

American Century's Small Cap Value Fund outperformed its benchmark despite a 6.25% Q1 decline, driven by strong stock selection in energy and industrials. The portfolio maintains overweights in undervalued banks and quality industrials trading below historical multiples, while benefiting from solid execution at holdings like Axis Capital and strategic exits from appreciated positions.

QUARTER	THEMES	TAGS
2026 Q1	Oil The war in Iran and Strait of Hormuz closure caused crude oil prices to soar during the quarter. Energy sector holdings moved sharply higher on these events, with the fund maintaining a significant overweight allocation to energy relative to the benchmark.	Oil Energy Geopolitical Supply Disruption
	Regional Banks The fund maintains a significant overweight to financials, particularly banking, anchored by analysis showing continued positive inflection in net interest income and overstated market fears of an extended negative debt cycle. Many positions remain meaningfully undervalued.	Banks Financials Interest Credit Undervalued
	AI Artificial intelligence concerns weighed on markets and specific holdings during the quarter. Professional services positions suffered from what the manager believed were unwarranted concerns about AI disruption, and fears of AI disintermediation weighed on TriNet and its peers.	AI Disruption Technology Services Automation
2025 Q4	Financials Fund maintains significant overweight in financials sector relative to benchmark, with large positions in banks, financial services companies, and insurers. Management remains constructive on banking industry citing continued positive inflection in net interest income and believes fears of extended negative credit cycle were overstated.	Banks Financial Services Insurance Net Interest Income
	Consumer Discretionary Fund is overweight in consumer discretionary sector, heavily tilted toward higher-quality unique businesses targeting high-end consumers. Holdings include global consumer brands like Brunswick and Birkenstock, specialty retail exposure through marine dealers and Bath & Body Works.	Specialty Retail Consumer Brands High-End Consumers
	Industrials Management believes industrials remains attractive and continues overweight positioning relative to benchmark. They have found higher-quality industrials in machinery, distribution, and commercial services that demonstrated strong pricing power during inflationary environment.	Machinery Distribution Commercial Services Pricing Power
	Healthcare Fund remains significantly underweight in healthcare sector as management believes valuations have not presented attractive risk/reward opportunities. Significant portion of underweight driven by lack of exposure to small-cap biotechnology, pharmaceuticals and life sciences tools companies.	Biotechnology Pharmaceuticals Life Sciences
	Semiconductors Information technology sector contributed to performance with strong results from Amkor Technology and Kulicke & Soffa Industries. Amkor benefited from signs of recovery in end markets and growing focus on artificial intelligence packaging solutions.	Chip Assembly AI Packaging Semiconductor Equipment
2025 Q3	Value The portfolio seeks to invest in small-cap companies where the valuation does not reflect the quality and normal earnings power of the company. Many holdings are trading meaningfully below historical valuations, particularly in financials where the market has overstated fears for an extended negative lending cycle.	Undervalued Discount Quality Earnings
	Regional Banks The fund maintains significant overweight in banks relative to benchmark, with research indicating an impending positive inflection in net interest income. The team remains positively predisposed to higher-quality banks trading meaningfully below historical valuations despite overstated market fears.	Banks Interest Credit Lending Quality
	Semiconductor Cycle Axcelis Technologies performed well after an extended period of underperformance, generating better-than-expected profits amid stabilizing demand. The stock likely benefited from improved semiconductor sentiment in the market.	Semiconductors Equipment Demand Sentiment
2025 Q2	Value The portfolio seeks to invest in small-cap companies where the valuation does not reflect the quality and normal earnings power of the company. Many holdings are trading meaningfully below historical valuations, particularly in financials where the market has overstated fears for an extended negative lending cycle.	Undervalued Discount Quality Earnings
	Buybacks Industrial companies have generated significant excess cash flow and accelerated efforts to return cash to shareholders via increased dividends, share buybacks and debt reduction. This pricing power coupled with strong core unit demand has enabled these capital return programs.	Share repurchases Capital return Cash flow Shareholder returns
2025 Q1	Value The portfolio seeks to invest in small-cap companies where the valuation does not reflect the quality and normal earnings power of the company. Many holdings are trading meaningfully below historical multiples despite strong fundamentals.	Undervalued Multiples Quality
	Buybacks Strong pricing power and excess cash flow generation has allowed many holdings to accelerate efforts to return value to shareholders via increased dividends, share buybacks and debt reduction.	Share Repurchases Capital Return Cash Flow
	Regional Banks Maintained significant overweight in banks based on analysis showing impending positive inflection in net interest income and overstated market fears. Many holdings still trading meaningfully below historical multiples.	Net Interest Income Banking Credit

QUARTER

THEMES

Oil

The war in Iran and Strait of Hormuz closure caused crude oil prices to soar during the quarter. Energy sector holdings moved sharply higher on these events, with the fund maintaining a significant overweight allocation to energy relative to the benchmark.

Oil Energy Geopolitical Supply Disruption

Regional Banks

The fund maintains a significant overweight to financials, particularly banking, anchored by analysis showing continued positive inflection in net interest income and overstated market fears of an extended negative debt cycle. Many positions remain meaningfully undervalued.

Banks Financials Interest Credit Undervalued

AI

Artificial intelligence concerns weighed on markets and specific holdings during the quarter. Professional services positions suffered from what the manager believed were unwarranted concerns about AI disruption, and fears of AI disintermediation weighed on TriNet and its peers.

AI Disruption Technology Services Automation

2025 Q4

Financials

Fund maintains significant overweight in financials sector relative to benchmark, with large positions in banks, financial services companies, and insurers. Management remains constructive on banking industry citing continued positive inflection in net interest income and believes fears of extended negative credit cycle were overstated.

Banks Financial Services Insurance Net Interest Income

Consumer Discretionary

Fund is overweight in consumer discretionary sector, heavily tilted toward higher-quality unique businesses targeting high-end consumers. Holdings include global consumer brands like Brunswick and Birkenstock, specialty retail exposure through marine dealers and Bath & Body Works.

Specialty Retail Consumer Brands High-End Consumers

Industrials

Management believes industrials remains attractive and continues overweight positioning relative to benchmark. They have found higher-quality industrials in machinery, distribution, and commercial services that demonstrated strong pricing power during inflationary environment.

Machinery Distribution Commercial Services Pricing Power

Healthcare

Fund remains significantly underweight in healthcare sector as management believes valuations have not presented attractive risk/reward opportunities. Significant portion of underweight driven by lack of exposure to small-cap biotechnology, pharmaceuticals and life sciences tools companies.

Biotechnology Pharmaceuticals Life Sciences

Semiconductors

Information technology sector contributed to performance with strong results from Amkor Technology and Kulicke & Soffa Industries. Amkor benefited from signs of recovery in end markets and growing focus on artificial intelligence packaging solutions.

Chip Assembly AI Packaging Semiconductor Equipment

2025 Q3

Value

The portfolio seeks to invest in small-cap companies where the valuation does not reflect the quality and normal earnings power of the company. Many holdings are trading meaningfully below historical valuations, particularly in financials where the market has overstated fears for an extended negative lending cycle.

Undervalued Discount Quality Earnings

Regional Banks

The fund maintains significant overweight in banks relative to benchmark, with research indicating an impending positive inflection in net interest income. The team remains positively predisposed to higher-quality banks trading meaningfully below historical valuations despite overstated market fears.

Banks Interest Credit Lending Quality

Semiconductor Cycle

Axcelis Technologies performed well after an extended period of underperformance, generating better-than-expected profits amid stabilizing demand. The stock likely benefited from improved semiconductor sentiment in the market.

Semiconductors Equipment Demand Sentiment

2025 Q2

Value

Undervalued Discount Quality Earnings

Buybacks

Industrial companies have generated significant excess cash flow and accelerated efforts to return cash to shareholders via increased dividends, share buybacks and debt reduction. This pricing power coupled with strong core unit demand has enabled these capital return programs.

Share repurchases Capital return Cash flow Shareholder returns

2025 Q1

Value

Undervalued Multiples Quality

Buybacks

Strong pricing power and excess cash flow generation has allowed many holdings to accelerate efforts to return value to shareholders via increased dividends, share buybacks and debt reduction.

Share Repurchases Capital Return Cash Flow

Regional Banks

Maintained significant overweight in banks based on analysis showing impending positive inflection in net interest income and overstated market fears. Many holdings still trading meaningfully below historical multiples.

Net Interest Income Banking Credit

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Apr 29, 2026	Fund Letters	American Century Small Cap Value Fund	GPK	Graphic Packaging Holding	Packaging & Containers	Paper Packaging	Bear	New York Stock Exchange	Bear, consumer goods, leverage, materials, Packaging, Structural Weakness, Sustainable Packaging	Login
Apr 29, 2026	Fund Letters	American Century Small Cap Value Fund	TNET	TriNet Group	Staffing & Employment Services	Human Resource & Employment Services	Bear	New York Stock Exchange	AI disruption, Bear, Declining Employees, Human Resources, Insurance Costs, Outsourcing, professional services	Login
Apr 29, 2026	Fund Letters	American Century Small Cap Value Fund	ENOV	Enovis	Medical Devices	Health Care Equipment	Bull	New York Stock Exchange	Bull, discounted valuation, growth potential, Health Care Equipment, medical technology, Orthopedic Implants, Value	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Apr 29, 2026

Fund Letters

American Century Small Cap Value Fund

GPK

Graphic Packaging Holding

Packaging & Containers

Paper Packaging

Bear

New York Stock Exchange

Bear, consumer goods, leverage, materials, Packaging, Structural Weakness, Sustainable Packaging

Apr 29, 2026

Fund Letters

American Century Small Cap Value Fund

TNET

TriNet Group

Staffing & Employment Services

Human Resource & Employment Services

Bear

New York Stock Exchange

AI disruption, Bear, Declining Employees, Human Resources, Insurance Costs, Outsourcing, professional services

Apr 29, 2026

Fund Letters

American Century Small Cap Value Fund

ENOV

Enovis

Medical Devices

Health Care Equipment

Bull

New York Stock Exchange

Bull, discounted valuation, growth potential, Health Care Equipment, medical technology, Orthopedic Implants, Value

TICKER	COMMENTARY
CEI	The Houston-based independent oil and gas company saw its shares move higher during the quarter primarily due to the spike in oil prices. Implications of the Strait of Hormuz remaining partially closed also supported the higher share price.
PR	Shares of the Denver-based oil and gas company traded higher as the energy sector rallied. Oil prices moved sharply higher in March due to the war in Iran and supply disruptions caused by the partial closure of the Strait of Hormuz.
MGY	The Houston-based oil and gas company benefited as the energy sector rallied during the quarter. The stock jumped higher in March as oil prices spiked and investors weighed the implications of continued supply disruptions caused by the war in Iran.
GPK	The company manufactures sustainable paper-based packaging for food, beverages and consumer goods. We believe it has struggled as packaging demand has been impacted by a weaker low-end consumer. The company reported a weak fourth quarter, and full-year guidance was below expectations.
TNET	This provider of outsourced human resources services underperformed amid declining worksite employees and elevated insurance costs. The company reported quarterly results in line with expectations, though guidance for 2026 was weaker than investors expected. We believe fears of artificial intelligence disintermediation have also weighed on TriNet and its peers.
ENOV	This company is a leading manufacturer of orthopedic implants and equipment used for injury prevention and recovery. Enovis preannounced fourth-quarter earnings that missed investor expectations and forecast decelerating growth in 2026. We believe Enovis has shown above-market growth potential and a discounted valuation relative to peers.

TICKER

COMMENTARY

CEI

The Houston-based independent oil and gas company saw its shares move higher during the quarter primarily due to the spike in oil prices. Implications of the Strait of Hormuz remaining partially closed also supported the higher share price.

Shares of the Denver-based oil and gas company traded higher as the energy sector rallied. Oil prices moved sharply higher in March due to the war in Iran and supply disruptions caused by the partial closure of the Strait of Hormuz.

MGY

The Houston-based oil and gas company benefited as the energy sector rallied during the quarter. The stock jumped higher in March as oil prices spiked and investors weighed the implications of continued supply disruptions caused by the war in Iran.

GPK

The company manufactures sustainable paper-based packaging for food, beverages and consumer goods. We believe it has struggled as packaging demand has been impacted by a weaker low-end consumer. The company reported a weak fourth quarter, and full-year guidance was below expectations.

TNET

This provider of outsourced human resources services underperformed amid declining worksite employees and elevated insurance costs. The company reported quarterly results in line with expectations, though guidance for 2026 was weaker than investors expected. We believe fears of artificial intelligence disintermediation have also weighed on TriNet and its peers.

ENOV

This company is a leading manufacturer of orthopedic implants and equipment used for injury prevention and recovery. Enovis preannounced fourth-quarter earnings that missed investor expectations and forecast decelerating growth in 2026. We believe Enovis has shown above-market growth potential and a discounted valuation relative to peers.

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Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st March 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Oil

Regional Banks

AI

Financials

Consumer Discretionary

Industrials

Healthcare

Semiconductors

Value

Regional Banks

Semiconductor Cycle

Value

Buybacks

Value

Buybacks

Regional Banks

Investor Pitches

Current Portfolio as of ( 31st March 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Rajesh Gandhi Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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American Century Small Cap Value Fund