FUND PROFILE
High-Yield
INVESTOR CLASS
November 6, 1998
[american century logo(reg.sm)]
American
Century
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This profile summarizes key information about the fund that is included
in the fund's Prospectus. The fund's Prospectus includes 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 phone numbers and our address.
BENHAM GROUP
AMERICAN CENTURY INVESTMENTS
HIGH-YIELD
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
High-Yield seeks high current income by investing in a diversified
portfolio of high-yielding corporate bonds, debentures and notes. As a
secondary objective, the fund seeks capital appreciation, but only when
consistent with the primary objective of maximizing current income.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund invests primarily in lower-rated debt securities, which are
subject to greater credit risk and consequently pay higher yields.
Securities of this type are subject to substantial risks including price
volatility, liquidity risk and default risk. You should carefully assess
the risks associated with an investment in the fund.
Under normal market conditions, the fund will maintain at least 80% of
its total assets in high-yielding corporate bonds and other debt
instruments (including convertible and preferred securities). The remaining
assets may be invested in common stocks or other equity-related securities.
The fund may buy securities that are considered below investment grade,
including so-called "junk bonds." Issuers of these securities often have
short financial histories or have questionable credit.
Up to 40% of the fund's total assets may be invested in fixed-income
obligations of foreign issuers. Under normal market conditions, the fund
may invest up to 20% of its assets, and for temporary defensive purposes,
up to 100% of its assets, in short-term money market instruments.
Authorized Credit Quality Ranges
A-1 A-2 A-3
P-1 P-2 P-3
MIG-1 MIG-2 MIG-3
SP-1 SP-2 SP-3
AAA AA A BBB BB B CCC CC C D
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*Denotes authorized quality
#Denotes expected quality range of at least 80% of total assets of the fund
Additional information about High-Yield'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 High-Yield's shares depends on the value of the securities it
owns and the income they produce. 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. This interest rate risk is higher for High-Yield than for funds
that have shorter weighted average maturities, such as money market and
short-term bond funds.
*The fund may invest in securities rated below investment grade, including
bonds that are in technical or monetary default. By definition, the issuers
of many of these securities have had, and may continue to have, problems
making interest and principal payments.
*Issuers of high-yield securities are more vulnerable to real or perceived
economic changes (such as an economic downturn or a prolonged period of
rising interest rates), political changes or adverse developments specific
to the issuer. Adverse economic, political or other developments may be
more likely to cause an issuer of lower quality bonds to default on its
principal and interest obligations.
*The market for lower quality securities is generally less liquid than the
market for higher quality securities.
*Adverse publicity and investor perceptions, as well as new or proposed
laws, also may have a greater negative impact on the market for
lower-quality securities.
*High-Yield can invest up to 40% of its assets 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 the lack of
uniform financial reporting and regulatory practices similar to those that
apply to U.S. issuers.
BENHAM HIGH-YIELD AMERICAN CENTURY INVESTMENTS
*Sovereign debt of foreign governments is generally rated by country.
Because these ratings do not take into account individual factors relevant
to each security issuance and may not be updated regularly, the manager may
elect to treat such securities as unrated debt.
*As with all funds, at any given time the value of your shares of
High-Yield 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. Additionally, an investment in the fund is not a bank deposit, nor
is it insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales charges, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class 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 0.90%
Distribution and Service (12b-1) Fees None
Other Expenses(1) 0.00%
Total Annual Fund Operating Expenses 0.90%
(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
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$92 $286 $497 $1,104
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 acting
together to manage our mutual funds. The portfolio manager members of the
High-Yield team are:
NORMAN E. HOOPS, Senior Vice President and Portfolio Manager, has been a
member of the team that manages High-Yield since its inception in September
1997. Mr. Hoops joined American Century as Vice President and Portfolio
Manager in November 1989. In April 1993, he became Senior Vice President.
THERESA C. FENNELL, Portfolio Manager, has been a member of the team
that manages High-Yield since its inception in September 1997. Ms. Fennell
joined American Century in June 1997. Prior to joining American Century,
she was an Assistant Portfolio Manager with Smith Barney Mutual Funds
Management, Inc.
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 IRAs, Roth
IRAs and UGMA/UTMA accounts). 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 may also exchange your shares in High-Yield 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.
FUND PROFILE BENHAM HIGH-YIELD
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
High-Yield pays distributions of substantially all of its income
monthly. 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 may 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 1-800-345-3555.
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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.
(c) 1998 American Century Services Corporation
SH-BRO-13788 9811
