SEM IAN N UAL REPO RT J U N E 30, 2012

VP International Fund

Table of Contents

Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Fund Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Shareholder Fee Example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Statement of Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Statement of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Statement of Changes in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Approval of Management Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Any opinions expressed in this report refl ect 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.

2

Performance

Total Returns as of June 30, 2012

Average Annual Returns

Ticker Symbol 6 months(1) 1 year 5 years 10 years

Since Inception

Inception Date

Class I AVIIX 4.88% -13.22% -3.96% 4.40% 5.03% 5/1/94

MSCI EAFE Index — 2.96% -13.83% -6.10% 5.14% 3.89%(2) —

MSCI EAFE Growth Index — 3.86% -12.56% -4.60% 4.91% 2.81%(2) —

Class II ANVPX 4.73% -13.37% -4.11% 4.23% 2.67% 8/15/01

Class III AIVPX 4.88% -13.22% -3.96% 4.40% 4.05% 5/2/02

Class IV AVPLX 4.73% -13.47% -4.11% — 4.62% 5/3/04

(1) Total returns for periods less than one year are not annualized.

(2) Since 4/30/94, the date nearest Class I’s inception for which data are available.

The performance information presented does not include charges and deductions imposed by the insurance company separate account under the variable annuity or variable life insurance contracts. The inclusion of such charges could signifi cantly lower performance. Please refer to the insurance company separate account prospectus for a discussion of the charges related to insurance contracts.

Total Annual Fund Operating Expenses

Class I Class II Class III Class IV

1.43% 1.58% 1.43% 1.58%

The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.

Data presented refl ect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fl uctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-6488. International investing involves special risks, such as political instability and currency fl uctuations. Investing in emerging markets may accentuate these risks.

Unless otherwise indicated, performance refl ects Class I shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts refl ect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund’s total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the indices do not.

3

Fund Characteristics

JUNE 30, 2012

Top Ten Holdings % of net assets

Nestle SA 2.6%

Syngenta AG 1.8%

Pernod-Ricard SA 1.8%

BHP Billiton Ltd. 1.7%

Novo Nordisk A/S B Shares 1.7%

Saipem SpA 1.6%

Toyota Motor Corp. 1.6%

Sanofi 1.5%

British American Tobacco plc 1.4%

Muenchener Rueckversicherungs AG 1.4%

Types of Investments in Portfolio % of net assets

Foreign Common Stocks 99.3%

Temporary Cash Investments 1.0%

Other Assets and Liabilities (0.3)%

Investments by Country % of net assets

United Kingdom 18.5%

Japan 14.6%

France 11.0%

Germany 8.3%

Switzerland 8.0%

Italy 3.5%

Netherlands 3.4%

Australia 2.9%

Spain 2.9%

South Korea 2.5%

Sweden 2.2%

Belgium 2.1%

Denmark 2.1%

Other Countries 17.3%

Cash and Equivalents* 0.7%

*Includes temporary cash investments and other assets and liabilities.

4

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 January 1, 2012 to June 30, 2012.

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 refl ect 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.

5

Beginning Account Value

1/1/12

Ending Account Value

6/30/12

Expenses Paid During Period(1) 1/1/12 – 6/30/12

Annualized Expense Ratio(1)

Actual

Class I $1,000 $1,048.80 $7.34 1.44%

Class II $1,000 $1,047.30 $8.09 1.59%

Class III $1,000 $1,048.80 $7.34 1.44%

Class IV $1,000 $1,047.30 $8.09 1.59%

Hypothetical

Class I $1,000 $1,017.70 $7.22 1.44%

Class II $1,000 $1,016.96 $7.97 1.59%

Class III $1,000 $1,017.70 $7.22 1.44%

Class IV $1,000 $1,016.96 $7.97 1.59%

(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 fi scal half-year, divided by 366, to refl ect the one-half year period.

6

Shares Value

Common Stocks — 99.3%AUSTRALIA — 2.9%BHP Billiton Ltd. 126,680 $ 4,129,330

Commonwealth

Bank of Australia 52,294 2,861,860

6,991,190

BELGIUM — 2.1%Anheuser-Busch InBev NV 38,614 3,001,958

Umicore SA 45,145 2,086,946

5,088,904

BRAZIL — 0.6%BR Malls Participacoes SA 62,000 702,265

Itau Unibanco Holding SA

Preference Shares 58,900 823,163

1,525,428

CANADA — 0.9%Bank of Nova Scotia 24,350 1,261,388

Canadian National

Railway Co. 11,209 947,937

2,209,325

DENMARK — 2.1%Christian Hansen

Holding A/S 36,980 950,236

Novo Nordisk A/S B Shares 27,604 3,993,500

4,943,736

FINLAND — 0.3%Kone Oyj 12,152 735,869

FRANCE — 11.0%Air Liquide SA 5,304 606,834

BNP Paribas SA 46,752 1,804,804

Cie Generale d’Optique

Essilor International SA 19,348 1,797,313

Danone SA 35,194 2,184,926

Eutelsat Communications SA 18,802 578,101

Iliad SA 4,157 601,467

L’Oreal SA 22,292 2,611,354

LVMH Moet Hennessy

Louis Vuitton SA 11,021 1,679,802

Pernod-Ricard SA 39,322 4,206,528

Sanofi 46,070 3,493,536

Schneider Electric SA 22,788 1,269,718

Technip SA 26,622 2,778,139

Zodiac Aerospace 23,551 2,396,389

26,008,911

GERMANY — 8.3%adidas AG 17,250 1,237,219

BASF SE 35,803 2,487,901

Bayerische Motoren

Werke AG 23,433 1,697,906

Schedule of Investments

JUNE 30, 2012 (UNAUDITED)

Shares ValueDeutsche Post AG 53,865 $ 954,009

E.ON AG 66,242 1,426,882

Fresenius Medical

Care AG & Co. KGaA 18,723 1,325,244

HeidelbergCement AG 23,532 1,129,684

Hugo Boss AG 17,055 1,686,929

Kabel Deutschland

Holding AG(1) 40,251 2,504,930

Muenchener

Rueckversicherungs AG 23,591 3,328,450

SAP AG 33,692 1,989,631

19,768,785

HONG KONG — 1.5%AIA Group Ltd. 407,600 1,405,383

China Unicom Ltd. ADR 75,798 951,265

Link Real Estate Investment

Trust (The) 279,000 1,140,673

3,497,321

INDIA — 0.4%HDFC Bank Ltd. ADR 27,649 901,357

INDONESIA — 0.8%PT Bank Mandiri

(Persero) Tbk 2,316,225 1,792,881

IRELAND — 1.1%Experian plc 98,149 1,386,470

Shire plc 38,531 1,107,409

2,493,879

ISRAEL — 0.1%Check Point Software

Technologies Ltd.(1) 4,653 230,742

ITALY — 3.5%ENI SpA 84,263 1,798,287

Pirelli & C SpA 114,999 1,213,077

Prada SpA 231,600 1,573,961

Saipem SpA 85,682 3,815,897

8,401,222

JAPAN — 14.6%Daito Trust

Construction Co. Ltd. 16,800 1,593,668

FANUC Corp. 10,700 1,757,980

Fast Retailing Co. Ltd. 8,500 1,706,353

Hitachi Ltd. 215,000 1,322,276

Japan Tobacco, Inc. 107,600 3,188,571

Komatsu Ltd. 53,300 1,277,492

Lawson, Inc. 30,800 2,154,848

Mitsubishi Corp. 153,200 3,093,659

Mitsubishi Estate Co. Ltd. 78,000 1,399,252

Mitsubishi Heavy

Industries Ltd. 404,000 1,640,451

7

Shares ValueMurata Manufacturing

Co. Ltd. 41,300 $ 2,166,526

Nitori Holdings Co. Ltd. 9,650 913,777

ORIX Corp. 35,130 3,269,841

Rakuten, Inc. 221,830 2,297,230

SOFTBANK CORP. 28,000 1,041,016

Toyota Motor Corp. 92,300 3,720,205

Unicharm Corp. 39,100 2,227,410

34,770,555

MACAU — 0.4%Sands China Ltd. 272,000 871,311

MEXICO — 0.5%Coca-Cola Femsa SAB

de CV ADR 8,264 1,081,592

NETHERLANDS — 3.4%ASML Holding NV 42,550 2,168,233

European Aeronautic

Defence and Space Co. NV 79,980 2,836,299

Gemalto NV 20,857 1,499,957

Koninklijke Vopak NV 24,573 1,575,779

8,080,268

NORWAY — 1.8%Statoil ASA 130,227 3,113,992

Telenor ASA 70,850 1,181,604

4,295,596

PEOPLE’S REPUBLIC OF CHINA — 1.2%

Baidu, Inc. ADR(1) 13,993 1,608,915

Lenovo Group Ltd. 940,000 802,017

Tencent Holdings Ltd. 12,300 363,225

2,774,157

PERU — 0.5%Credicorp Ltd. 8,920 1,122,939

PORTUGAL — 0.8%Jeronimo Martins SGPS SA 108,800 1,835,956

RUSSIAN FEDERATION — 1.5%

Magnit OJSC GDR(1) 61,010 1,839,661

Sberbank of Russia 637,520 1,718,330

3,557,991

SINGAPORE — 1.2%DBS Group Holdings Ltd. 149,000 1,644,661

Keppel Corp. Ltd. 148,000 1,212,726

2,857,387

SOUTH KOREA — 2.5%Hyundai Motor Co. 12,768 2,619,320

Samsung

Electronics Co. Ltd. 3,125 3,313,197

5,932,517

Shares ValueSPAIN — 2.9%Banco Bilbao Vizcaya

Argentaria SA 238,138 $ 1,716,345

Grifols SA(1) 115,085 2,919,102

Inditex SA 22,030 2,278,555

6,914,002

SWEDEN — 2.2%Atlas Copco AB A Shares 61,354 1,324,715

Elekta AB B Shares 33,029 1,506,250

Swedbank AB A Shares 104,108 1,646,335

Volvo AB B Shares 62,104 711,443

5,188,743

SWITZERLAND — 8.0%

Adecco SA(1) 22,936 1,020,691

Nestle SA 103,376 6,166,525

Roche Holding AG 18,123 3,128,527

SGS SA 710 1,330,392

Syngenta AG 12,420 4,239,979

UBS AG(1) 113,966 1,332,764

Zurich Financial

Services AG(1) 8,160 1,841,056

19,059,934

TAIWAN (REPUBLIC OF CHINA) — 1.9%Hon Hai Precision

Industry Co. Ltd. 774,000 2,333,882

Taiwan Semiconductor

Manufacturing

Co. Ltd. ADR(1) 157,210 2,194,651

4,528,533

THAILAND — 1.1%Kasikornbank PCL NVDR 529,200 2,713,502

TURKEY — 0.7%Turkiye Garanti Bankasi AS 418,859 1,651,370

UNITED KINGDOM — 18.5%Admiral Group plc 57,619 1,077,700

Aegis Group plc 453,450 1,151,182

Aggreko plc 47,143 1,533,523

Antofagasta plc 67,504 1,158,538

ARM Holdings plc 86,529 689,065

BG Group plc 161,179 3,298,985

British American

Tobacco plc 67,603 3,440,879

Burberry Group plc 78,251 1,632,253

Capita Group plc (The) 129,604 1,332,680

Carnival plc 16,819 575,551

Compass Group plc 115,926 1,215,975

GlaxoSmithKline plc 112,823 2,558,357

8

Shares ValueHSBC Holdings plc

(Hong Kong) 303,833 $ 2,723,862

Intercontinental

Hotels Group plc 90,965 2,198,401

Kingfi sher plc 281,151 1,271,229

Lloyds Banking Group plc(1) 3,514,400 1,728,628

Petrofac Ltd. 110,262 2,410,504

Reckitt Benckiser Group plc 27,979 1,475,661

Rio Tinto plc 67,117 3,205,462

Standard Chartered plc 94,661 2,063,690

Vodafone Group plc 842,075 2,365,924

Whitbread plc 64,251 2,050,316

Wolseley plc 77,500 2,895,583

44,053,948

TOTAL COMMON STOCKS(Cost $198,518,879) 235,879,851

Temporary Cash Investments — 1.0%Repurchase Agreement, Bank of America

Merrill Lynch, (collateralized by various

U.S. Treasury obligations, 1.50% - 4.00%,

2/15/15 - 6/30/16, valued at $785,503),

in a joint trading account at 0.10%,

dated 6/29/12, due 7/2/12

(Delivery value $770,542) 770,536

Repurchase Agreement, Credit Suisse First

Boston, Inc., (collateralized by various

U.S. Treasury obligations, 3.75%, 8/15/41,

valued at $787,944), in a joint trading

account at 0.10%, dated 6/29/12, due

7/2/12 (Delivery value $770,542) 770,536

Repurchase Agreement, Goldman Sachs &

Co., (collateralized by various U.S. Treasury

obligations, 4.375%, 5/15/40, valued at

$196,224), in a joint trading account at

0.06%, dated 6/29/12, due 7/2/12

(Delivery value $192,635) 192,634

SSgA U.S. Government

Money Market Fund 688,664 688,664

TOTAL TEMPORARY CASH INVESTMENTS(Cost $2,422,370) 2,422,370TOTAL INVESTMENT SECURITIES — 100.3%(Cost $200,941,249) 238,302,221OTHER ASSETS AND LIABILITIES — (0.3)% (685,904)TOTAL NET ASSETS — 100.0% $237,616,317

Market Sector Diversifi cation (as a % of net assets) Financials 19.2%

Consumer Discretionary 15.5%

Consumer Staples 14.8%

Industrials 13.0%

Health Care 9.3%

Information Technology 8.7%

Materials 8.5%

Energy 7.2%

Telecommunication Services 2.5%

Utilities 0.6%

Cash and Equivalents* 0.7%

*Includes temporary cash investments and other assets and liabilities.

Notes to Schedule of Investments ADR = American Depositary Receipt

GDR = Global Depositary Receipt

NVDR = Non-Voting Depositary Receipt

OJSC = Open Joint Stock Company

(1) Non-income producing.

See Notes to Financial Statements.

9

Statement of Assets and Liabilities

JUNE 30, 2012 (UNAUDITED)

AssetsInvestment securities, at value (cost of $200,941,249) $238,302,221

Foreign currency holdings, at value (cost of $340,006) 339,736

Receivable for investments sold 1,130,607

Receivable for capital shares sold 10,099

Dividends and interest receivable 1,324,608

Other assets 13,407

241,120,678

LiabilitiesPayable for investments purchased 2,797,086

Payable for capital shares redeemed 429,511

Accrued management fees 266,756

Distribution fees payable 11,008

3,504,361

Net Assets $237,616,317

Net Assets Consist of:Capital (par value and paid-in surplus) $282,796,262

Undistributed net investment income 2,013,979

Accumulated net realized loss (84,650,501)

Net unrealized appreciation 37,456,577

$237,616,317

Net assets Shares outstanding Net asset value per shareClass I, $0.01 Par Value $181,255,262 23,452,329 $7.73

Class II, $0.01 Par Value $54,237,353 7,023,865 $7.72

Class III, $0.01 Par Value $781,696 101,148 $7.73

Class IV, $0.01 Par Value $1,342,006 173,720 $7.73

See Notes to Financial Statements.

10

Statement of Operations

FOR THE SIX MONTHS ENDED JUNE 30, 2012 (UNAUDITED)

Investment Income (Loss)Income:Dividends (net of foreign taxes withheld of $502,053) $ 4,531,423

Interest 219

4,531,642

Expenses:Management fees 1,751,121

Distribution fees:

Class II 72,079

Class IV 1,811

Directors’ fees and expenses 5,112

Other expenses 6,060

1,836,183

Net investment income (loss) 2,695,459

Realized and Unrealized Gain (Loss)Net realized gain (loss) on:Investment transactions 7,687,430

Foreign currency transactions (67,390)

7,620,040

Change in net unrealized appreciation (depreciation) on:Investments 1,930,873

Translation of assets and liabilities in foreign currencies (1,429)

1,929,444

Net realized and unrealized gain (loss) 9,549,484

Net Increase (Decrease) in Net Assets Resulting from Operations $12,244,943

See Notes to Financial Statements.

11

Statement of Changes in Net Assets

SIX MONTHS ENDED JUNE 30, 2012 (UNAUDITED) AND YEAR ENDED DECEMBER 31, 2011

Increase (Decrease) in Net Assets June 30, 2012 December 31, 2011OperationsNet investment income (loss) $ 2,695,459 $ 2,621,414

Net realized gain (loss) 7,620,040 18,285,965

Change in net unrealized appreciation (depreciation) 1,929,444 (54,887,052)

Net increase (decrease) in net assets resulting from operations 12,244,943 (33,979,673)

Distributions to ShareholdersFrom net investment income:

Class I (1,629,456) (3,283,610)

Class II (404,511) (880,827)

Class III (7,187) (14,691)

Class IV (10,332) (19,719)

Decrease in net assets from distributions (2,051,486) (4,198,847)

Capital Share TransactionsNet increase (decrease) in net assets from capital share transactions (17,061,455) (42,675,419)

Redemption FeesIncrease in net assets from redemption fees 3 29

Net increase (decrease) in net assets (6,867,995) (80,853,910)

Net AssetsBeginning of period 244,484,312 325,338,222

End of period $237,616,317 $244,484,312

Undistributed net investment income $2,013,979 $1,370,006

See Notes to Financial Statements.

12

Notes to Financial Statements

JUNE 30, 2012 (UNAUDITED)

1. Organization

American Century Variable Portfolios, Inc. (the corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Maryland corporation. VP International Fund (the fund) is one fund in a series issued by the corporation. The fund is diversifi ed as defi ned under the 1940 Act. The fund’s investment objective is to seek capital growth. The fund pursues its objective by investing primarily in equity securities of companies located in at least three developed countries (excluding the United States) that management believes will increase in value over time.

The fund offers Class I, Class II, Class III and Class IV. The share classes differ principally in their respective distribution and shareholder servicing expenses and arrangements. Class II and Class IV are charged a lower unifi ed management fee because they have separate arrangements for distribution services.

2. Signifi cant Accounting Policies

The following is a summary of signifi cant accounting policies consistently followed by the fund in preparation of its fi nancial statements. The fi nancial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require management to make certain estimates and assumptions at the date of the fi nancial statements. Actual results could differ from these estimates.

Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share as of 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.

Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the offi cial closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are typically valued at the closing price on the exchange where primarily traded or as of 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 is used. Depending on local convention or regulation, securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the offi cial closing price. In its determination of fair value, the fund may review several factors including: market information specifi c to a security; news developments in U.S. and foreign markets; the performance of particular U.S. and foreign securities, indices, comparable securities, American Depositary Receipts, Exchange-Traded Funds, and other relevant market indicators.

Debt securities maturing within 60 days at the time of purchase may be valued at cost, plus or minus any amortized discount or premium or at the evaluated mean as provided by an independent pricing service. Evaluated mean prices are commonly derived through utilization of market models, which may consider, among other factors, trade data, quotations from dealers and active market makers, relevant yield curve and spread data, related sector levels, creditworthiness, and other relevant market information on the same or comparable securities.

Investments in open-end management investment companies are valued at the reported net asset value per share. Repurchase agreements are valued at cost.

The value of investments initially expressed in foreign currencies is translated into U.S. dollars at prevailing exchange rates.

If the fund determines that the market price for a portfolio security is not readily available or the valuation methods mentioned above do not refl ect a security’s fair value, such security is valued as determined in good faith by the Board of Directors or its designee, in accordance with procedures adopted by the Board of Directors. Circumstances that may cause the fund to use these procedures to value a security include, but are not limited to: a security has been declared in default; trading in a security has been halted during

13

the trading day; there is a foreign market holiday and no trading occurred; or an event occurred between the close of a foreign exchange and the NYSE that may affect the value of a security.

Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identifi ed 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. 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 suffi cient 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. The fund is no longer subject to examination by tax authorities for years prior to 2008. Additionally, non-U.S. tax returns fi led by the fund due to investments in certain foreign securities remain subject to examination by the relevant taxing authority for seven years from the date of fi ling. 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 benefi ts will signifi cantly change in the next twelve months. Accordingly, no provision has been made for federal or state income taxes.

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 specifi c expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specifi c 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.

14

Redemption —The fund may impose a 1.00% redemption fee on shares held less than 60 days. The fee may not be applicable to all classes. The redemption fee is retained by the fund and helps cover transaction costs that long-term investors may bear when the fund sells securities to meet investor redemptions.

Indemnifi cations — Under the corporation’s organizational documents, its offi cers and directors are indemnifi ed 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 indemnifi cations. 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

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, unifi ed management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution 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 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 have very similar investment teams and investment strategies (strategy assets). The annual management fee schedule for each class ranges from 1.00% to 1.50% for Class I and Class III and from 0.90% to 1.40% for Class II and Class IV. The effective annual management fee for each class for the six months ended June 30, 2012 was 1.43%, 1.33%, 1.43% and 1.33% for Class I, Class II, Class III and Class IV, respectively.

Distribution Fees — The Board of Directors has adopted the Master Distribution Plan for Class II and a separate Master Distribution Plan for Class IV (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that Class II and Class IV will each pay American Century Investment Services, Inc. (ACIS) an annual distribution fee equal to 0.25%. The fee is computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The distribution fee provides compensation for expenses incurred in connection with distributing shares of the classes including, but not limited to, payments to brokers, dealers, and fi nancial institutions that have entered into sales agreements with respect to shares of the fund. Fees incurred under the plans during the six months ended June 30, 2012 are detailed in the Statement of Operations.

Related Parties — Certain offi cers and directors of the corporation are also offi cers and/or directors of American Century Companies, Inc., the parent of the corporation’s investment advisor, ACIM, the distributor of the corporation, ACIS, and the corporation’s transfer agent, American Century Services, LLC.

4. Investment Transactions

Purchases and sales of investment securities, excluding short-term investments, for the six months ended June 30, 2012 were $112,597,507 and $130,412,120, respectively.

15

5. Capital Share Transactions

Transactions in shares of the fund were as follows:

Six months ended June 30, 2012 Year ended December 31, 2011Shares Amount Shares Amount

Class I/Shares Authorized 200,000,000 200,000,000

Sold 905,977 $ 7,099,263 2,979,959 $ 24,900,345

Issued in reinvestment of distributions 195,378 1,629,456 379,170 3,283,610

Redeemed (2,641,404) (20,802,668) (7,076,962) (59,677,301)

(1,540,049) (12,073,949) (3,717,833) (31,493,346)

Class II/Shares Authorized 100,000,000 100,000,000

Sold 144,265 1,137,484 456,991 3,838,368

Issued in reinvestment of distributions 48,503 404,511 101,830 880,827

Redeemed (789,306) (6,231,285) (1,891,082) (15,678,778)

(596,538) (4,689,290) (1,332,261) (10,959,583)

Class III/Shares Authorized 50,000,000 50,000,000

Sold 1,194 9,306 12,702 108,223

Issued in reinvestment of distributions 862 7,187 1,696 14,691

Redeemed (15,242) (121,973) (27,210) (220,027)

(13,186) (105,480) (12,812) (97,113)

Class IV/Shares Authorized 50,000,000 50,000,000

Sold 5,031 39,978 28,710 229,490

Issued in reinvestment of distributions 1,239 10,332 2,277 19,719

Redeemed (30,317) (243,046) (44,963) (374,586)

(24,047) (192,736) (13,976) (125,377)

Net increase (decrease) (2,173,820) $(17,061,455) (5,076,882) $(42,675,419)

6. Fair Value Measurements

The fund’s securities valuation process is based on several considerations and may use multiple inputs to determine the fair value of the positions 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 classifi ed into three broad levels as follows:

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

• Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for similar securities, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.); or

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

The level classifi cation is based on the lowest level input that is signifi cant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other fi nancial instruments.

16

The following is a summary of the level classifi cations as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.

Level 1 Level 2 Level 3Investment SecuritiesForeign Common Stocks $8,091,461 $227,788,390 —

Temporary Cash Investments 688,664 1,733,706 —

Total Value of Investment Securities $8,780,125 $229,522,096 —

7. Risk Factors

There are certain risks involved in investing in foreign securities. These risks include those resulting from future adverse political, social and economic developments, fl uctuations in currency exchange rates, the possible imposition of exchange controls, and other foreign laws or restrictions. Investing in emerging markets 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 refl ect the differing character of certain income items and net realized gains and losses for fi nancial statement and tax purposes, and may result in reclassifi cation among certain capital accounts on the fi nancial statements.

As of June 30, 2012, the components of investments for federal income tax purposes were as follows:

Federal tax cost of investments $203,075,526

Gross tax appreciation of investments $42,318,960

Gross tax depreciation of investments (7,092,265)

Net tax appreciation (depreciation) of investments $35,226,695

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

As of December 31, 2011, the fund had accumulated capital losses of $(84,450,606), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations. Capital loss carryovers of $(5,932,201) and $(78,518,405) expire in 2016 and 2017, respectively.

The fund has elected to treat $(5,078,886) of net capital losses incurred in the two-month period ended December 31, 2011, as having been incurred in the following fi scal year for federal income tax purposes.

17

Fina

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2009

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126%

$258

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2008

$11.

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2007

$10.

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$11.

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101%

$702

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Clas

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$7.4

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$54,

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2011

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18

For a

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.

19

Approval of Management Agreement

At a meeting held on June 21, 2012, the Fund’s Board of Directors unani-mously approved the renewal of the 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, contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s independent directors (the “Directors”) each year.

As a part of the approval process, the Board requested and reviewed exten-sive data and information compiled by the Advisor and certain independent providers of evaluation data concerning the Fund and the services provided to the Fund by the Advisor. This review was in addition to the oversight and evaluation undertaken by the Board and its committees on a continuous basis throughout the year and included, but was not limited to the following:

• the nature, extent, and quality of investment management, shareholder services, and other services provided by the Advisor to the Fund;

• the wide range of other programs and services the Advisor provides to the Fund and its shareholders on a routine and non-routine basis;

• the investment performance of the fund, including data comparing the Fund’s performance to appropriate benchmarks and/or a peer group of other mutual funds with similar investment objectives and strategies;

• data comparing the cost of owning the Fund to the cost of owning similar funds;

• the Advisor’s compliance policies, procedures, and regulatory experience;

• fi nancial data showing the cost of services provided to the Fund, the profi t-ability of the Fund to the Advisor, and the overall profi tability of the Advisor;

• data comparing services provided and charges to other investment manage-ment clients of the Advisor; and

• consideration of collateral benefi ts derived by the Advisor from the manage-ment of the Fund and any potential economies of scale relating thereto.

In keeping with its practice, the Board held two in-person meetings and one tele-phonic meeting to review and discuss the information provided. The Directors also had the benefi t of the advice of independent counsel throughout the period.

Factors Considered

The Directors considered all of the information provided by the Advisor, the independent data providers, and independent counsel, and evaluated such information 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. In deciding to renew the management agreement, the Board based its decision on a number of factors, including the following:

20

Nature, Extent and Quality of Services — Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that under the management agreement, the Advisor provides or arranges at its own expense a wide variety of services including:

• constructing and designing the Fund

• portfolio research and security selection

• initial capitalization/funding

• securities trading

• Fund administration

• custody of Fund assets

• daily valuation of the Fund’s portfolio

• shareholder servicing and transfer agency, including shareholder confi rmations, recordkeeping, and communications

• legal services

• regulatory and portfolio compliance

• fi nancial reporting

• marketing and distribution

The Board noted that many of these services have expanded over time both in terms of quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.

Investment Management Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversifi cation of their investments within an asset class, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and approved strategies. Further, the Directors recognize that the Advisor has an obligation to monitor trading activities, and in particular to seek the best execution of fund trades, and to evaluate the use of and payment for research. In providing these services, the Advisor utilizes teams of investment professionals (portfolio managers, analysts, research assistants, and securities traders) who require extensive information technology, research, training, compliance and other systems to conduct their business. The Board, directly and through its Fund Performance Review Committee, regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different

21

time horizons. The Directors also review detailed performance information during the management agreement approval process. If performance concerns are identifi ed, the Fund receives special reviews until performance improves, during which the Board discusses with the Advisor the reasons for such results (e.g., market conditions, security selection) and any efforts being undertaken to improve performance. Taking all these factors into consideration, the Board found the investment management services provided by the Advisor to the Fund to meet or exceed industry standards. More detailed information about the Fund’s performance can be found in the Performance section of this report.

Shareholder and Other Services. Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, share-holder, and other services. The Board, directly and through various committees of the Board, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational effi ciency and accuracy of the shareholder and transfer agency services provided, staffi ng levels, shareholder satisfaction (as measured by external as well as internal sources), technology support, new products and services offered to Fund shareholders, securities trading activities, portfolio valu-ation services, auditing services, and legal and operational compliance activities. Certain aspects of shareholder and transfer agency service level effi ciency and the quality of securities trading activities are measured by independent third party providers and are presented in comparison to other fund groups not managed by the Advisor. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.

Costs of Services and Profi tability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profi tability in managing the Fund, its overall profi tability, and its fi nancial condition. The Directors have reviewed with the Advisor the methodology used to prepare this fi nancial information. The fi nancial information regarding the Advisor is considered in evaluating the Advisor’s fi nancial condition, ability to continue to provide services under the management agreement, and the reasonableness of the current management fee. The Board concluded that the Advisor’s profi ts were reasonable in light of the services provided to the Fund.

Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.

Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are diffi cult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is appropriately sharing economies of scale through its competitive fee structure, offering competitive fees from fund inception, and through reinvestment in its business to provide shareholders additional content and services.

22

Comparison to Other Funds’ Fees. The management agreement provides that the Fund pay the Advisor a single, all-inclusive (or unifi ed) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage expenses, taxes, interest, extraordinary expenses, and the fees and expenses of the Fund’s independent directors (including their independent legal counsel) and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. Under the unifi ed fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing and shareholder services, or arranging and super-vising 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 any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unifi ed fee structure is a benefi t to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unifi ed 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 ineffi ciencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider and comparing the Fund’s unifi ed fee to the total expense ratio of other funds in the Fund’s peer group. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.

Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs and profi tability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entre-preneurial risks than the management of the Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.

Collateral or “Fall-Out” Benefi ts Derived by the Advisor. The Board considered the existence of collateral benefi ts the Advisor may receive as a result of its rela-tionship with the Fund. They concluded that the Advisor’s primary business is managing mutual funds and it generally does not use fund or shareholder information to generate profi ts in other lines of business, and therefore does not derive any signifi cant collateral benefi ts from them. The Board noted that the Advisor receives proprietary research from broker-dealers that execute fund portfolio transactions and concluded that this research is likely to benefi t Fund shareholders. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board concluded, however, that the assets of those other clients are not material to the analysis and, where applicable, may be included with the assets of the Fund to determine breakpoints in the management fee schedule.

23

Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advi-sor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.

Conclusion of the Directors. As a result of this process, the Board, including all of the independent directors, taking into account all of the factors discussed above and the information provided by the Advisor and others, concluded that the manage-ment agreement between the Fund and the Advisor is fair and reasonable in light of the services provided and should be renewed.

24

Additional Information

Proxy Voting Guidelines

American Century Investment Management, Inc., the fund’s investment advisor, is responsible for exercising the voting rights associated with the securities purchased and/or held by the fund. A description of the policies and procedures the advisor uses in fulfi lling this responsibility is available without charge, upon request, by calling 1-800-378-9878. It is also available on 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 fi les its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the fi rst and third quarters of each fi scal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Wash-ington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fi scal year available on its website at ipro.americancentury.com (for Investment Professionals) and, upon request, by calling 1-800-378-9878.

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