FUND PROFILE
Limited-Term Bond
INVESTOR CLASS
January 31, 1999
[american century logo(reg.sm)]
American
Century
- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included
in the fund's Prospectus. The fund's Prospectus has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.
BENHAM GROUP
AMERICAN CENTURY INVESTMENTS
LIMITED-TERM BOND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Limited-Term Bond seeks income from investments in corporate bonds and
other debt obligations.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund buys quality, short-term corporate bonds and other debt
securities. Corporate bonds generally are issued by companies to finance
existing operations or to expand their business. Under normal market
conditions, the advisor will invest most of the fund's assets in
investment-grade securities. The remainder will be invested in short-term
money market instruments.
The fund advisor actively manages the fund, adjusting its weighted
average portfolio maturity in response to expected changes in interest
rates. If interest rates are expected to rise, the weighted average
maturity of the fund will be shortened to protect its net asset value from
the effects of falling bond prices. If interest rates are expected to fall,
the weighted average maturity will be increased to take advantage of
potentially increasing bond prices.
The weighted average maturity of the fund is expected to be five years
or less.
Additional information about Limited-Term Bond's investments is
available in its annual and semiannual reports. In these reports you will
find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the most recent
six-month period. You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's income and its share
value will decline. The opposite is true when interest rates decline.
The interest rate risk for Limited-Term Bond is higher than for funds
that have shorter weighted average maturities, such as money market
funds.
* The fund may invest part of its assets in securities rated in the lowest
investment-grade category (e.g., Baa or BBB). Although these securities
are considered investment grade, the issuers are more likely to have
problems making interest and principal payments than issuers of
higher-rated securities.
* As with all funds, at any given time, the value of your shares of
Limited-Term Bond may be worth more or less than the price you paid. If
you sell your shares when the value is less than the price you paid, you
will lose money.
* An investment in the fund is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
In summary, Limited-Term Bond is intended for investors who seek a
competitive level of income with limited price volatility.
FUND PERFORMANCE
The following bar chart shows the actual performance of Limited-Term
Bond's Investor Class shares for each calendar year since the fund's
inception on March 1, 1994. The bar chart indicates the volatility of the
fund's historical returns from year to year. Neither the bar chart nor the
performance information below it is intended to indicate how the fund will
perform in the future.
[bar chart]
CALENDAR YEAR-BY-YEAR RETURNS
1995 1996 1997 1998
FPO
LIMITED-TERM BOND AMERICAN CENTURY INVESTMENTS
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter for the life of the fund, are provided in the following
chart to indicate the fund's historical short-term volatility.
[bar chart]
Highest and Lowest Quarterly Returns
FPO Quarter Ended 3/31/94
Quarter Ended 3/31/95
The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The Merrill Lynch 1- to
5-Year Government/Corporate Index, an unmanaged index that reflects no
operating costs, is included as a benchmark for long-term performance
comparisons.
1 YEAR LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
Long-Term Bond ____% ____%
Merrill Lynch 1- to 5-Year
Govt./Corp. Index ____% ____%
For current performance information, including yields, please call us
or access our Web site.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class shares of other American Century funds
or to redeem your shares. The following table describes the fees and
expenses that you may pay if you buy and hold shares of the fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.70%
Distribution and Service (12b-1) Fees None
Other Expenses(1) 0.00%
Total Annual Fund Operating Expenses 0.70%
(1 )Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE OF HYPOTHETICAL FUND COSTS
Assuming you . . .
* invest $10,000 in the fund
* redeem your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------
$71 $224 $389 $868
Of course, actual costs may be higher or lower. Use this example
to compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment
advisory and management services for the fund. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio managers of the
Limited-Term Bond team are identified below:
NORMAN E. HOOPS, Senior Vice President and Portfolio Manager, has been a
member of the team that manages Limited-Term Bond since the fund's
inception in March 1994. He joined American Century as Vice President and
Portfolio Manager in November 1989. In April 1993, he became Senior Vice
President. He has a bachelor of arts degree from Indiana University and an
MBA from Butler University.
JEFFREY L. HOUSTON, Portfolio Manager, has been a member of the team
that manages Limited-Term Bond since June 1995. He joined American Century
as an Investment Analyst in 1990 and was promoted to Portfolio Manager in
1994. He has a bachelor of arts degree from the University of Delaware and
an MPA from Syracuse University. He is a Chartered Financial Analyst.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
FUND PROFILE LIMITED-TERM BOND
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in Limited-Term
Bond for shares in nearly 70 other mutual funds offered by American
Century. Depending on the options you select when you open your account,
some restrictions may apply. For your protection, some redemption requests
require a signature guarantee.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Limited-Term Bond pays distributions of substantially all of its income
monthly. Distributions may be taxable as ordinary income, capital gains or
a combination of the two. Capital gains are taxed at different rates
depending on the length of time the fund held the securities that were
sold. Distributions are reinvested automatically in additional shares
unless you choose another option.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as:
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or through a financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo(reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
CORPORATE, NOT-FOR-PROFIT, KEOGH, SEP-,
SARSEP-, SIMPLE-IRA AND 403(B) SERVICES
1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
Funds Distributor, Inc.
SH-BRO-14131 9812
<PAGE>
FUND PROFILE
Intermediate-Term Bond
INVESTOR CLASS
January 31, 1999
[american century logo(reg.sm)]
American
Century
- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included
in the fund's Prospectus. The fund's Prospectus has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.
BENHAM GROUP
AMERICAN CENTURY INVESTMENTS
INTERMEDIATE-TERM BOND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Intermediate-Term Bond seeks a competitive level of income from
investments in corporate bonds and other debt obligations.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund buys quality, short- to intermediate-term corporate bonds and
other debt securities. Corporate bonds generally are issued by companies to
finance existing operations or to expand their business. Under normal
market conditions, the advisor will invest most of the fund's assets in
investment-grade securities. The remainder will be invested in short-term
money market instruments.
The fund advisor actively manages the fund, adjusting its weighted
average portfolio maturity in response to expected changes in interest
rates. If interest rates are expected to rise, the weighted average
maturity of the fund will be shortened to protect its net asset value from
the effects of falling bond prices. If interest rates are expected to fall,
the weighted average maturity will be increased to take advantage of
potentially increasing bond prices.
The weighted average maturity of the fund is expected to be three to ten
years.
Additional information about Intermediate-Term Bond's investments is
available in its annual and semiannual reports. In these reports you will
find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the most recent
six-month period. You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's share value will
decline. The opposite is true when interest rates decline. The interest
rate risk for Intermediate-Term Bond is higher than for funds that have
shorter weighted average maturities, such as money market and short-term
bond funds.
* The fund may invest part of its assets in securities rated in the lowest
investment-grade category (e.g., Baa or BBB). Although these securities
are considered investment grade, the issuers are more likely to have
problems making interest and principal payments than issuers of
higher-rated securities.
* As with all funds, at any given time, the value of your shares of
Intermediate-Term Bond may be worth more or less than the price you
paid. If you sell your shares when the value is less than the price you
paid, you will lose money.
* An investment in the fund is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
In summary, Intermediate-Term Bond is intended for investors who seek a
higher level of current income than is generally available from
shorter-term corporate and government securities and who are willing to
accept a greater degree of price fluctuation.
FUND PERFORMANCE
The following bar chart shows the actual performance of
Intermediate-Term Bond's Investor Class shares for each calendar year since
the fund's inception on March 1, 1994. The bar chart indicates the
volatility of the fund's historical returns from year to year. Neither the
bar chart nor the performance information below it is intended to indicate
how the fund will perform in the future.
[bar chart]
CALENDAR YEAR-BY-YEAR RETURNS
1995 1996 1997 1998
FPO
INTERMEDIATE-TERM BOND AMERICAN CENTURY INVESTMENTS
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter for the life of the fund, are provided in the following
chart to indicate the fund's historical short-term volatility.
[bar chart]
Highest and Lowest Quarterly Returns
FPO Quarter Ended 3/31/94
Quarter Ended 3/31/95
The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The Lehman Intermediate
Government/Corporate Index, an unmanaged index that reflects no operating
costs, is included as a benchmark for long-term performance comparisons.
1 YEAR LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
Intermediate-Term Bond ____% ____%
Lehman Intermediate
Govt./Corp. Index ____% ____%
For current performance information, including yields, please call us
or access our Web site.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class shares of other American Century funds
or to redeem your shares. The following table describes the fees and
expenses that you may pay if you buy and hold shares of the fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.75%
Distribution and Service (12b-1) Fees None
Other Expenses(1) 0.00%
Total Annual Fund Operating Expenses 0.75%
(1 )Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE OF HYPOTHETICAL FUND COSTS
Assuming you . . .
* invest $10,000 in the fund
* redeem your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------
$76 $239 $416 $928
Of course, actual costs may be higher or lower. Use this example
to compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment
advisory and management services for the fund. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio managers of the
Intermediate-Term Bond team are identified below:
NORMAN E. HOOPS, Senior Vice President and Portfolio Manager, has been a
member of the team that manages Intermediate-Term Bond since the fund's
inception in March 1994. He joined American Century as Vice President and
Portfolio Manager in November 1989. In April 1993, he became Senior Vice
President. He has a bachelor of arts degree from Indiana University and an
MBA from Butler University.
JEFFREY L. HOUSTON, Portfolio Manager, has been a member of the team
that manages Intermediate-Term Bond since May 1995. He joined American
Century as an Investment Analyst in 1990 and was promoted to Portfolio
Manager in 1994. He has a bachelor of arts degree from the University of
Delaware and an MPA from Syracuse University. He is a Chartered Financial
Analyst.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
FUND PROFILE INTERMEDIATE-TERM BOND
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in
Intermediate-Term Bond for shares in nearly 70 other mutual funds offered
by American Century. Depending on the options you select when you open your
account, some restrictions may apply. For your protection, some redemption
requests require a signature guarantee.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Intermediate-Term Bond pays distributions of substantially all of its
income monthly. Distributions may be taxable as ordinary income, capital
gains or a combination of the two. Capital gains are taxed at different
rates depending on the length of time the fund held the securities that
were sold. Distributions are reinvested automatically in additional shares
unless you choose another option.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as:
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or through a financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo(reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
CORPORATE, NOT-FOR-PROFIT, KEOGH, SEP-,
SARSEP-, SIMPLE-IRA AND 403(B) SERVICES
1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
Funds Distributor, Inc.
SH-BRO-14132 9812
<PAGE>
FUND PROFILE
Benham Bond
INVESTOR CLASS
January 31, 1999
[american century logo(reg.sm)]
American
Century
- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included
in the fund's Prospectus. The fund's Prospectus has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.
BENHAM GROUP
AMERICAN CENTURY INVESTMENTS
BENHAM BOND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Benham Bond seeks a high level of income from investments in corporate
bonds and other debt obligations.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund buys quality, intermediate- and longer-term corporate bonds and
other debt securities. Corporate bonds generally are issued by companies to
finance existing operations or to expand their business. Under normal
market conditions, the advisor will invest most of the fund's assets in
investment-grade securities. The remainder will be invested in short-term
money market instruments.
The fund advisor actively manages the fund, adjusting its weighted
average portfolio maturity in response to expected changes in interest
rates. If interest rates are expected to rise, the weighted average
maturity of the fund will be shortened to protect its net asset value from
the effects of falling bond prices. If interest rates are expected to fall,
the weighted average maturity will be increased to take advantage of
potentially increasing bond prices.
Although there is no weighted average maturity requirement for this
fund, it will primarily invest in intermediate- and long-term bonds. It is
anticipated that under normal market conditions, the weighted average
maturity will be between eight and 20 years.
Additional information about Benham Bond's investments is available in
its annual and semiannual reports. In these reports you will find a
discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the most recent
six-month period. You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's income and its share
value will decline. The opposite is true when interest rates decline.
The interest rate risk for Benham Bond is higher than for funds that
have shorter weighted average maturities, such as money market and
short-term and intermediate-term bond funds.
* The fund may invest part of its assets in securities rated in the lowest
investment grade category (e.g., Baa or BBB). Although these securities
are considered investment grade, the issuers are more likely to have
problems making interest and principal payments than issuers of
higher-rated securities.
* As with all funds, at any given time, the value of your shares of Benham
Bond may be worth more or less than the price you paid. If you sell your
shares when the value is less than the price you paid, you will lose
money.
* An investment in the fund is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
In summary, Benham Bond is intended for investors who seek higher income
than is generally provided by money market or short- and intermediate-term
securities and who can accept the greater price volatility associated with
longer-term bonds.
FUND PERFORMANCE
The following bar chart shows the actual performance of Benham Bond's
Investor Class shares for each of the last 10 calendar years. The bar chart
indicates the volatility of the fund's historical returns from year to
year. Neither the bar chart nor the performance information below it is
intended to indicate how the fund will perform in the future.
[bar chart]
CALENDAR YEAR-BY-YEAR RETURNS
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
FPO
BENHAM BOND AMERICAN CENTURY INVESTMENTS
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter during the last 10 calendar years, are provided in the
following chart to indicate the fund's historical short-term volatility.
[bar chart]
Highest and Lowest Quarterly Returns
FPO Quarter Ended 3/31/94 0.00%
Quarter Ended 3/31/95 0.00%
The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The Lehman Aggregate Bond
Index, an unmanaged index that reflects no operating costs, is included as
a benchmark for long-term performance comparisons.
1 YEAR 5 years 10 years
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
Benham Bond ____% ____% ____%
Lehman Arrregate
Bond Index ____% ____% ____%
For current performance information, including yields, please call us or
access our Web site.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class shares of other American Century funds
or to redeem your shares. The following table describes the fees and
expenses that you may pay if you buy and hold shares of the fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.80%
Distribution and Service (12b-1) Fees None
Other Expenses(1) 0.00%
Total Annual Fund Operating Expenses 0.80%
(1 )Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE OF HYPOTHETICAL FUND COSTS
Assuming you . . .
* invest $10,000 in the fund
* redeem your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
- --------------------------------------------------------------------------------
$82 $255 $443 $987
Of course, actual costs may be higher or lower. Use this example
to compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment
advisory and management services for the fund. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio managers of the Benham
Bond team are identified below:
NORMAN E. HOOPS, Senior Vice President and Portfolio Manager, has been a
member of the team that manages Benham Bond since November 1989. He joined
American Century as Vice President and Portfolio Manager in November 1989.
In April 1993, he became Senior Vice President. He has a bachelor of arts
degree from Indiana University and an MBA from Butler University.
JEFFREY L. HOUSTON, Portfolio Manager, has been a member of the team
that manages Benham Bond since June 1995. He joined American Century as an
Investment Analyst in 1990 and was promoted to Portfolio Manager in 1994.
He has a bachelor of arts degree from the University of Delaware and an MPA
from Syracuse University. He is a Chartered Financial Analyst.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
FUND PROFILE BENHAM BOND
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell a part of your fund shares on any business day by writing
or calling us. You also may exchange your shares in Benham Bond for shares
in nearly 70 other mutual funds offered by American Century. Depending on
the options you select when you open your account, some restrictions may
apply. For your protection, some redemption requests require a signature
guarantee.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Benham Bond pays distributions of substantially all of its income
monthly. Distributions may be taxable as ordinary income, capital gains or
a combination of the two. Capital gains are taxed at different rates
depending on the length of time the fund held the securities that were
sold. Distributions are reinvested automatically in additional shares
unless you choose another option.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as:
* telephone transaction
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or through a financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo(reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
CORPORATE, NOT-FOR-PROFIT, KEOGH, SEP-,
SARSEP-, SIMPLE-IRA AND 403(B) SERVICES
1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
Funds Distributor, Inc.
SH-BRO-14133 9812
<PAGE>
FUND PROFILE
Balanced
INVESTOR CLASS
January 31, 1999
[american century logo(reg.sm)]
American
Century
- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included
in the fund's Prospectus. The fund's Prospectus has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.
AMERICAN CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
BALANCED
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Balanced seeks long-term capital growth and current income by investing
approximately 60% of the fund's assets in equity securities, while the
remainder is invested in bonds and other fixed income securities.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
With the equity portion of the Balanced portfolio, the fund advisor
utilizes quantitative management techniques in a two-step process that
draws heavily on computer technology. In the first step, the fund advisor
ranks stocks, primarily the 1,500 largest publicly traded companies in the
United States (measured by the value of their stock). These rankings are
determined by using a computer model that combines measures of a stock's
value, as well as measures of its growth potential. To measure value, the
manager uses ratios of stock price to book value and stock price to cash
flow, among others. To measure growth, the manager uses, among others, the
rate of growth of a company's earnings and changes in its earnings
estimates.
In the second step, the manager uses a technique called portfolio
optimization. In portfolio optimization, the manager uses a computer to
build a portfolio of stocks from the ranking described earlier that it
thinks will provide the optimal balance between risk and expected return.
The goal is to create an equity portfolio that provides better returns than
the S&P 500 without taking on significant additional risk.
The fixed-income portion of the fund's portfolio is invested in a
diversified portfolio of high-grade government, corporate, asset-backed and
similar securities payable in U.S. currency, with a minimum of 25% of the
fund's assets in fixed-income senior securities. At least 80% of the
fixed-income assets will be invested in securities that, at the time of
purchase, are rated within the three highest categories by a nationally
recognized statistical rating organization. The remaining portion may be
invested in securities rated in the fourth highest category. Under normal
market conditions the weighted average maturity for the fixed-income
portfolio will be in the three- to 10-year range.
Additional information about Balanced's investments is available in its
annual and semiannual reports. In these reports you will find a discussion
of the market conditions and investment strategies that significantly
affected the fund's performance during the most recent six-month period.
You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* The value of Balanced's shares depends on the value of the stocks, bonds
and other securities it owns. The value of the individual equity
securities Balanced owns will go up and down depending on the
performance of the companies that issued them, general market and
economic conditions, and investor confidence. The value of the fund's
fixed-income securities will be affected primarily by rising or falling
interest rates and the continued ability of the issuers of these
securities to make payments of interest and principal as they become
due.
* When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's share value will
decline. The opposite is true when interest rates decline. The interest
rate risk for Balanced is higher than for funds that have shorter
weighted average maturities, such as money market and short-term bond
funds.
* Market performance tends to be cyclical, and in the various cycles,
certain investment styles may fall in and out of favor. If the market is
not favoring the fund's style, the fund's gains may not be as big as, or
its losses may be bigger than, other funds using different investment
styles.
* As with all funds, at any given time, the value of your shares of
Balanced may be worth more or less than the price you paid. If you sell
your shares when the value is less than the price you paid, you will
lose money.
BALANCED AMERICAN CENTURY INVESTMENTS
* An investment in the fund is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
* Although the fund advisor invests the fund's assets pri-marily in U.S.
stocks, Balanced can invest in securities of foreign companies and
governments. Foreign securities can have certain unique risks, including
fluctuations in currency exchange rates, unstable political and economic
structures, reduced availability of public information and lack of
uniform financial reporting and regulatory practices similar to those
that apply to U.S. issuers.
In summary, Balanced is intended for investors who want an investment
that combines in a single investment, the potential for long-term capital
growth with the income produced from a portfolio of intermediate-term
fixed-income securities, and who are willing to accept the risks associated
with the fund's investment strategy.
FUND PERFORMANCE
The following bar chart shows the actual performance of Balanced's
Investor Class shares for each of the last 10 calendar years. The bar chart
indicates the volatility of the fund's historical returns from year to
year. Neither the bar chart nor the performance information below it is
intended to indicate how the fund will perform in the future.
[bar chart]
FPO
CALENDAR YEAR-BY-YEAR-RETURNS
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Balanced
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter during the last 10 calendar years, are provided in the
following chart to indicate the fund's historical short-term volatility.
Shareholders should be aware, however, that Balanced is intended for
investors with a long-term investment horizon and is not managed for
short-term results.
[bar chart]
Highest and Lowest Quarterly Returns
FPO Quarter Ended 3/31/91
Quarter Ended 3/31/94
The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. Balanced's benchmark is a
blended index that combines the S&P 500 and the Lehman Intermediate
Government/Corporate Index in proportion to the 60% stock/40% bond asset
mix of the fund. The S&P 500 Index and the Lehman Intermediate
Government/Corporate Index, unmanaged indexes that reflect no operating
costs, are blended as a benchmark for long-term performance comparisons.
1 YEAR 5 YEAR 10 YEARS
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
Balanced ____% ____% ____%
Blended Index ____% ____% ____%
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class shares of other American Century funds
or to redeem your shares. The following table describes the fees and
expenses that you may pay if you buy and hold shares of the fund.
FUND PROFILE BALANCED
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS) Management Fee 1.00%
Distribution and Service (12b-1) Fees None Other Expenses(1) 0.00%
Total Annual Fund Operating Expenses 1.00%
(1 )Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE OF HYPOTHETICAL FUND COSTS
Assuming you . . .
* invest $10,000 in the fund
* redeem your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
--------------------------------------------------------------------
$102 $318 $551 $1,219
Of course, actual costs may be higher or lower. Use this example
to compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment
advisory and management services for the fund. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio managers of the Balanced
team are identified below:
NORMAN E. HOOPS, Senior Vice President and Portfolio Manager, has been a
member of the team that manages Balanced since November 1989. He joined
American Century as Vice President and Portfolio Manager in November 1989.
In April 1993, he became Senior Vice President. He has a bachelor of arts
degree from Indiana University and an MBA from Butler University.
JOHN SCHNIEDWIND, Senior Vice President and Group Leader-Quantitative
Equity, has been a member of the team that manages Balanced since November
1998. He joined American Century in 1982 and also supervises other
portfolio management teams. He has a bachelor of science degree from Purdue
University and an MBA in finance from University of California. He is a
Chartered Financial Analyst.
JEFFREY R. TYLER, Senior Vice President and Portfolio Manager, has been
a member of the team that manages Balanced since November 1998. He has been
with American Century as a portfolio manager since January 1988. He has a
bachelor's degree in business economics from the University of California
and an MBA in finance and economics from Northwestern University. He is a
Chartered Financial Analyst.
JEFFREY L. HOUSTON, Portfolio Manager, has been a member of the team
that manages Balanced since June 1995. He joined American Century as an
Investment Analyst in November 1990 and was promoted to Portfolio Manager
in 1994. He has a bachelor of arts degree from the University of Delaware
and an MPA from Syracuse University. He is a Chartered Financial Analyst.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in Balanced for
shares in nearly 70 other mutual funds offered by American Century.
Depending on the options you select when you open your account, some
restrictions may apply. For your protection, some redemption requests
require a signature guarantee.
BALANCED AMERICAN CENTURY INVESTMENTS
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Balanced pays distributions of substantially all of its income
quarterly. Distributions from realized capital gains are paid once a year,
usually in December. Distributions may be taxable as ordinary income,
capital gains or a combination of the two. Capital gains are taxed at
different rates depending on the length of time the fund held the
securities that were sold. Distributions are reinvested automatically in
additional shares unless you choose another option.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as:
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or through a financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Service Representative at 1-800-345-3533.
FUND PROFILE BALANCED
- --------------------------------------------------------------------------------
[american century logo(reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
CORPORATE, NOT-FOR-PROFIT, KEOGH, SEP-,
SARSEP-, SIMPLE-IRA AND 403(B) SERVICES
1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
Funds Distributor, Inc.
SH-BRO-14134 9812
<PAGE>
FUND PROFILE
Giftrust(reg.tm)
INVESTOR CLASS
January 31, 1999
[american century logo(reg.sm)]
American
Century
- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included
in the fund's Prospectus. The fund's Prospectus has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.
TWENTIETH CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
GIFTRUST
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Giftrust seeks capital growth by investing primarily in common stocks.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund advisor looks for stocks of small- to medium-sized companies
that it believes will increase in value over time. The fund advisor uses a
growth investment strategy developed by American Century that looks for
companies whose earnings and revenues are not only growing, but growing at
a successively faster, or accelerating, pace. Accelerating growth is shown,
for example, by growth that is faster this quarter than last and faster
this year than the year before.
Using American Century's extensive computer database, the fund advisor
tracks financial information for thousands of companies to research and
select the stocks it believes will be able to sustain accelerating growth.
This strategy is based on the premise that, over the long term, the stocks
of companies with accelerating earnings and revenues have a
greater-than-average chance to increase in value. This aggressive
investment strategy, which pursues superior long-term returns for fund
shareholders, also results in the risks described in the next section.
The fund advisor does not attempt to time the market. Instead, it
intends to keep Giftrust essentially fully invested in stocks regardless of
the movement of stock prices generally. When the fund advisor believes that
it is prudent, it also may invest assets in non-leveraged futures and
options. "Non-leveraged" means that the fund may not invest in futures and
options where it would be possible to lose more than the fund invested.
Futures and options can help the fund's cash assets remain liquid while
performing more like stocks.
Additional information about Giftrust's investments is available in its
annual and semiannual reports. In these reports you will find a discussion
of the market conditions and investment strategies that significantly
affected the fund's performance during the most recent six-month period.
You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* Giftrust is a unique way to give a gift to a child, grandchild or other
individual. You may not invest in the fund for your own account.
Instead, you must establish an irrevocable trust using a Giftrust
Agreement, which you received in your Giftrust Kit or you can get from
American Century. The Giftrust Trustee invests your gift in the fund for
the benefit of the beneficiary you name under the Agreement.
* The minimum term of a Giftrust is 10 years. Neither the person
establishing the Giftrust nor the beneficiary of the trust may elect to
withdraw the gift before the expiration of the term of the trust.
* Establishing a Giftrust (and making future contributions) is considered
a gift of a future interest under the federal income tax code. That
means the person establishing a Giftrust account (or making future
contributions) is required to file a United States Gift Tax Return.
Although no gift tax is actually owed to the government until your
lifetime gifts exceed $625,000 (beginning in 1998 and increasing to $1
million in 2006), the tax laws applicable to trusts are quite complex.
You should consider consulting a tax attorney or accountant before
opening a Giftrust account.
* The value of Giftrust's shares depends on the value of the stocks and
other securities it owns. The value of the individual securities
Giftrust owns will go up and down depending on the performance of the
companies that issued them, general market and economic conditions, and
investor confidence.
* The fund advisor will buy a large amount of a company's stock quickly,
and often will dispose of it quickly if the company's earnings or
revenues decline. While the fund advisor believes this strategy provides
substantial appreciation potential over the long term, in the short term
it can create a significant amount of share price volatility. This
volatility can be greater than that of the average stock fund.
GIFTRUST AMERICAN CENTURY INVESTMENTS
* As with all funds, at any given time, the value of a Giftrust account
may be worth more or less than the original price.
* Because Giftrust generally invests in smaller companies than American
Century's similarly managed growth equity funds (such as Growth, Ultra
and Select), it may be more volatile, and subject to greater short-term
risk, than those funds. Smaller companies may have limited financial
resources, product lines and markets, and their securities may trade
less frequently and in more limited volumes than the securities of
larger companies. In addition, smaller companies may have less publicly
available information and, when available, it may be inaccurate or
incomplete.
* An investment in the fund is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
* Market performance tends to be cyclical, and in the various cycles,
certain investment styles may fall in and out of favor. If the market is
not favoring the fund's style, the fund's gains may not be as big as, or
its losses may be bigger than, other equity funds using different
investment styles.
* Although the fund advisor invests the fund's assets primarily in U.S.
stocks, Giftrust can invest in securities of foreign companies. Foreign
securities can have certain unique risks, including fluctuations in
currency exchange rates, unstable political and economic structures,
reduced availability of public information and lack of uniform financial
reporting and regulatory practices similar to those that apply to U.S.
issuers.
In summary, Giftrust is intended for investors who want to give a gift
to another individual, but want that gift to have the potential to grow
over time (at least 10 years) in a fund that seeks long-term capital growth
through an aggressive equity fund. Investors wanting to make such a gift
must be willing to give up control over the gift forever and accept the
risks associated with the fund's investment strategy.
FUND PERFORMANCE
The following bar chart shows the actual performance of Giftrust's
shares for each of the last 10 calendar years. The bar chart indicates the
volatility of the fund's historical returns from year to year. Neither the
bar chart nor the performance information below it is intended to indicate
how the fund will perform in the future.
[bar chart]
CALENDAR YEAR-BY-YEAR RETURNS
FPO 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Giftrust
The highest and lowest returns of the fund's shares for a calendar
quarter during the last 10 calendar years, are provided in the following
chart to indicate the fund's historical short-term volatility. You should
be aware, however, that the trusts investing in Giftrust have long-term
investment horizons and the fund is not managed for short-term results.
[bar chart]
Highest and Lowest Quarterly Returns
FPO Quarter Ended 3/31/91
Quarter Ended 9/30/90
The following table shows the average annual return of the fund's shares
for the periods indicated. The Russell 2000 Growth Index, an unmanaged
index that reflects no operating costs, is included as a benchmark for
long-term performance comparisons.
FUND PROFILE GIFTRUST
1 YEAR 5 YEARS 10 YEARS
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
Giftrust ____% ____% ____%
Russell 2000 Growth Index ____% ____% ____%
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges to establish a Giftrust
account or to reinvest dividends in additional shares. Upon the maturity of
a Giftrust (at least 10 years), the beneficiary may exchange his or her
Giftrust shares into the Investor Class shares of other American Century
funds or redeem his or her shares at no cost. The following table describes
the fees and expenses that a Giftrust may pay during the life of the trust.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 1.00%
Distribution and Service (12b-1) Fees None
Other Expenses(1) 0.00%
Total Annual Fund Operating Expenses(2) 1.00%
(1)Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
(2)The income of a Giftrust account is exempt from federal income tax
until it exceeds $100. The Trustee files all federal and state tax
returns and pays the income taxes out of the assets of the trust. A $10
fee is charged to the trust in each year a tax return is filed.
In addition, upon maturity a $100 administrative fee will be charged
against each Giftrust account established after March 31, 1996, to help
cover the costs incurred as a result of the Giftrust reaching maturity.
EXAMPLE OF HYPOTHETICAL FUND COSTS
Assuming . . .
* you establish a $10,000 Giftrust account
* shares are redeemed at the end of the periods shown below
* the account earns a 5% return each year
* the same fund operating expenses shown above apply each year
. . . the cost of investing in the fund would be:
1 year 3 years 5 years 10 years
-------------------------------------------------
$102 $318 $551 $1,219
Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds. It should also be
noted that, in most instances, a gift made in the fund must be made
in trust for a minimum term of 10 years and shares may not be
redeemed before the expiration of the trust's term.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment
advisory and management services for the fund. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio managers of the Giftrust
team are identified below:
CHRISTOPHER K. BOYD, Vice President and Portfolio Manager, has been a
member of the team that manages Giftrust since rejoining American Century
in January 1998. With the exception of 1997, he has been with American
Century since March 1988 and served as a Portfolio Manager since December
1992. During 1997, he was in private practice as an investment advisor. He
holds a bachelor of science degree from the University of Kansas and an MBA
from Darmouth College. He is a Chartered Financial Analyst.
JOHN D. SEITZER, Vice President and Portfolio Manager, has been a member
of the team that manages Giftrust since July 1996. He joined American
Century in June 1993 as an Investment Analyst and was promoted to Portfolio
Manager in July 1996. He holds a bachelor's degree in accounting and
finance from Kansas State University and an MBA in finance from Indiana
University. He is a Chartered Financial Analyst and a Certified Public
Accountant.
6. HOW DO I BUY FUND SHARES?
* Review all materials in the Giftrust Kit you received (to request a kit,
contact us at our address or phone number below)
* Complete and return the Giftrust Agreement
* Complete and return the enclosed application
* Once your Giftrust is established, call us and exchange shares from
another American Century fund
* Once your Giftrust is established, call us and send your investment by
bank wire transfer
Your initial gift to a Giftrust account must be at least $500. All other
subsequent gifts must be in an amount of $50 or more.
GIFTRUST AMERICAN CENTURY INVESTMENTS
7. HOW DO I SELL FUND SHARES?
After the Giftrust matures, the beneficiary may sell all or part of his
or her fund shares on any business day by writing us, calling us or may
exchange his or her shares in Giftrust for shares in nearly 70 other mutual
funds offered by American Century. For the beneficiary's protection, some
redemption requests require a signature guarantee. Before the Giftrust
matures, the beneficiary may not elect to sell or exchange his or her
Giftrust shares. Since the person establishing a Giftrust account makes an
irrevocable gift to the beneficiary, he or she may not elect to sell or
exchange the Giftrust shares.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Giftrust pays distributions of substantially all of its income and
realized capital gains once a year, usually in December. Distributions may
be taxable to the trust as ordinary income, capital gains or a combination
of the two. Capital gains are taxed at different rates depending on the
length of time the fund held the securities that were sold. Distributions
are reinvested automatically in additional shares. No federal income tax is
due from the trust unless its income exceeds $100 in a year. The trustee
files all state and federal tax returns and pays the taxes out of the
assets of the trust. A $10 fee is charged to the trust in each year a tax
return is filed.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to make
additional contributions to, or get information about, a Giftrust account,
such as:
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.
FUND PROFILE GIFTRUST
- --------------------------------------------------------------------------------
[american century logo(reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
INSTITUTIONAL, CORPORATE, KEOGH, SEP/SARSEP,
SIMPLE AND 403(B) SERVICES
1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
Funds Distributor, Inc.
SH-BRO-14135 9811
<PAGE>
FUND PROFILE
New Opportunities
INVESTOR CLASS
January 31, 1999
[american century logo(reg.sm)]
American
Century
- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included
in the fund's Prospectus. The fund's Prospectus has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.
TWENTIETH CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
NEW OPPORTUNITIES
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
New Opportunities seeks capital growth by investing primarily in common
stocks.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund advisor looks for stocks of smaller-sized companies that it
believes will increase in value over time. Although the advisor intends to
invest primarily in smaller-sized companies, the fund may own stock of
medium- and large-sized companies, particularly as the fund gets larger.
The fund advisor uses a growth investment strategy developed by American
Century that looks for companies whose earnings and revenues are not only
growing, but growing at a successively faster, or accelerating, pace.
Accelerating growth is shown, for example, by growth that is faster this
quarter than last or faster this year than the year before.
Using American Century's extensive computer database, the fund advisor
tracks financial information for thousands of companies to research and
select the stocks it believes will be able to sustain accelerating growth.
This strategy is based on the premise that, over the long term, the stocks
of companies with accelerating earnings and revenues have a
greater-than-average chance to increase in value. This aggressive
investment strategy, which pursues superior long-term returns for fund
shareholders, also results in the risks described in the next section.
The fund advisor does not attempt to time the market. Instead, it
intends to keep New Opportunities essentially fully invested in stocks
regardless of the movement of stock prices generally. When the fund advisor
believes that it is prudent, it also may invest assets in non-leveraged
futures and options. "Non-leveraged" means that the fund may not invest in
futures and options where it would be possible to lose more than the fund
invested. Futures and options can help the fund's cash assets remain liquid
while performing more like stocks.
Additional information about New Opportunities' investments is available
in its annual and semiannual reports. In these reports you will find a
discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the most recent
six-month period. You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* The value of New Opportunities' shares depends on the value of the
stocks and other securities it owns. The value of the individual
securities New Opportunities owns will go up and down depending on the
performance of the companies that issued them, general market and
economic conditions, and investor confidence.
* As with all funds, at any given time, the value of your shares of New
Opportunities may be worth more or less than the price you paid. If you
sell your shares when the value is less than the price you paid, you
will lose money.
* Because New Opportunities generally invests in smaller companies than
American Century's similarly managed growth equity funds (such as
Growth, Ultra and Select), it may be more volatile, and subject to
greater short-term risk, than those funds. Smaller companies may have
limited financial resources, product lines and markets, and their
securities may trade less frequently and in more limited volumes than
the securities of larger companies. In addition, smaller companies may
have less publicly available information and, when available, it may be
inaccurate or incomplete.
* The fund advisor will buy a large amount of a company's stock quickly,
and often will dispose of it quickly if the company's earnings or
revenues decline. While the fund advisor believes this strategy provides
substantial appreciation potential over the long term, in the short term
it can create a significant amount of share price volatility. This
volatility can be greater than that of the average stock fund.
NEW OPPORTUNITIES AMERICAN CENTURY INVESTMENTS
* An investment in the fund is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
* Market performance tends to be cyclical, and in the various cycles,
certain investment styles may fall in and out of favor. If the market is
not favoring the fund's style, the fund's gains may not be as big as, or
its losses may be bigger than, other equity funds using different
investment styles.
* Although the fund advisor invests the fund's assets primarily in U.S.
stocks, New Opportunities can invest in securities of foreign companies.
Foreign securities can have certain unique risks, including fluctuations
in currency exchange rates, unstable political and economic structures,
reduced availability of public information and lack of uniform financial
reporting and regulatory practices similar to those that apply to U.S.
issuers.
In summary, New Opportunities is intended for investors with a long-term
investment horizon (at least 5 years) who seek capital growth through an
aggressive equity fund and who are willing to accept the risks associated
with the fund's investment strategy.
FUND PERFORMANCE
The following bar chart shows the actual performance of New
Opportunities' shares for each calendar year since the fund's inception on
December 26, 1996. The bar chart indicates the volatility of the fund's
historical returns from year to year. Neither the bar chart nor the
performance information below it is intended to indicate how the fund will
perform in the future.
[bar chart]
CALENDAR YEAR-BY-YEAR RETURNS
FPO 1997 1998
New Opportunities
The highest and lowest returns of the fund's shares for a calendar
quarter for the life of the fund, are provided in the following chart to
indicate the fund's historical short-term volatility. Shareholders should
be aware, however, that New Opportunities is intended for investors with a
long-term investment horizon and is not managed for short-term results.
[bar chart]
Highest and Lowest Quarterly Returns
FPO Quarter Ended 3/31/91
Quarter Ended 9/30/90
The following table shows the average annual return of the fund's shares
for the periods indicated. The Russell 2000 Growth Index, an unmanaged
index that reflects no operating costs, is included as a benchmark for
long-term performance comparisons.
1 YEAR LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
New Opportunities ____% ____%
Russell 2000 Growth Index ____% ____%
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges to buy fund shares
directly from American Century or to reinvest dividends in additional
shares.
THE FUND CHARGES A REDEMPTION FEE OF 2.0% OF THE VALUE OF THE SHARES
SOLD WITHIN FIVE YEARS OF THEIR PURCHASE. This redemption fee is retained
by the fund. It is intended to discourage short-term investment in the fund
as well as to decrease the negative impact that short-term investors have
on the shareholders remaining in the fund. Otherwise, there are no fees or
charges to exchange into the Investor Class shares of other American
Century funds or to redeem your shares. The following table describes the
fees and expenses that you may pay if you buy and hold shares of the fund.
FUND PROFILE NEW OPPORTUNITIES
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 1.50%
Distribution and Service (12b-1) Fees None
Other Expenses(1) 0.00%
Total Annual Fund Operating Expenses 1.50%
(1)Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE OF HYPOTHETICAL FUND COSTS
Assuming you . . .
* invest $10,000 in the fund
* redeem your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
-----------------------------------------------
$359 $693 $814 $1,778
If you do not incur the 2% redemption fee by redeeming your
shares, your cost of investing in the fund for one year would be
$152 and for three years would be $472. Of course, actual costs
may be higher or lower. Use this example to compare the costs of
investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment
advisory and management services for the fund. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio managers of the New
Opportunities team are identified below:
CHRISTOPHER K. BOYD, Vice President and Portfolio Manager, has been a
member of the team that manages New Opportunities since rejoining American
Century in January 1998. With the exception of 1997, he has been with
American Century since March 1988 and served as a Portfolio Manager since
December 1992. During 1997, he was in private practice as an investment
advisor. He holds a bachelor of science degree from the University of
Kansas and an MBA from Darmouth College. He is a Chartered Financial
Analyst.
JOHN D. SEITZER, Vice President and Portfolio Manager, has been a member
of the team that manages New Opportunities since the fund's inception. He
joined American Century in June 1993 as an Investment Analyst and was
promoted to Portfolio Manager in July 1996. He holds a bachelor's degree in
accounting and finance from Kansas State University and an MBA in finance
from Indiana University. He is a Chartered Financial Analyst and a
Certified Public Accountant.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
The minimum initial investment for Priority Investors must be at least
$10,000; the maximum aggregate investment in the fund is $500,000. If the
value of your account falls below this account minimum, your shares may be
redeemed involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in New
Opportunities for shares in nearly 70 other mutual funds offered by
American Century. Depending on the options you select when you open your
account, some restrictions may apply. For your protection, some redemption
requests require a signature guarantee.
IF YOU SELL SHARES OF NEW OPPORTUNITIES WITHIN FIVE YEARS OF THEIR
PURCHASE, YOU WILL PAY A REDEMPTION FEE OF 2.0% OF THE VALUE OF THE SHARES
SOLD.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
New Opportunities pays distributions of substantially all of its income
and realized capital gains once a year, usually in December. Distributions
may be taxable as ordinary income, capital gains or a combination of the
two. Capital gains are taxed at different rates depending on the length of
time the fund held the securities that were sold. Distributions are
reinvested automatically in additional shares unless you choose another
option.
NEW OPPORTUNITIES AMERICAN CENTURY INVESTMENTS
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as:
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or through a financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Service Representative at 1-800-345-3533.
FUND PROFILE NEW OPPORTUNITIES
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[american century logo(reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
INSTITUTIONAL, CORPORATE, KEOGH, SEP/SARSEP,
SIMPLE AND 403(B) SERVICES
1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
Funds Distributor, Inc.
SH-BRO-14136 9811
