[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg.sm)]
American
Century
High-Yield Fund
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.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
OCTOBER 25, 1999
INVESTOR CLASS
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.
HIGH-YIELD FUND
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 managers invest the fund's assets 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 managers will maintain at least 80%
of the fund's 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 managers buy securities that are 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
-------------------------------- [black bar]
- ----------------------------------------------------------------------[gray bar]
[gray bar] Denotes authorized quality
[black bar] 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 fiscal 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.
* 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.
* As with all funds, your shares may be worth more or less at any given time
than the price you paid for them. 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 (FDIC) or any other
government agency.
High-Yield American Century Investments
In summary, High-Yield is intended for investors who seek current income by
investing in a diversified portfolio of high-yielding corporate bonds,
debentures and notes 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 High-Yield's
Investor Class shares for each calendar year since the fund's inception on
September 30, 1997. The bar chart indicates the volatility of the fund's
historical returns from year to year. The bar chart and the performance
information below are not intended to indicate how the fund will perform in
the future.
[bar chart]
Calendar Year-By-Year Returns (1)
1998 -1.25%
(1) As of September 30, 1999, the end of the most recent calendar
quarter, High-Yield's year-to-date return was 2.37%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
High-Yield 4.86% (1Q 1998) -7.18% (3Q 1998)
The following table shows the average annual total returns of the fund's
Investor Class shares for the periods indicated. The DLJ High Yield Index,
an unmanaged index that reflects no operating costs, is included as a
benchmark for performance comparisons. For current performance information,
including yields, please call us or access our Web site.
1 YEAR LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1999)
High-Yield 3.37% 1.44%
DLJ High Yield Index 4.48% 1.86%
(1) The inception date for High-Yield is September 30, 1997.
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
* to redeem your shares
The following table describes the fees and expenses that you will 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 0.00%(1)
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 and interest, were less
than 0.005% for the most recent fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$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 its mutual funds. Identified below are the portfolio
managers for the High-Yield team:
High-Yield Fund Profile
NORMAN E. HOOPS, Senior Vice President and Portfolio Manager, has been a
member of the team that manages High-Yield since its inception. 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
from Indiana University and an MBA from Butler University.
THERESA C. FENNELL, Vice President and Portfolio Manager, has been a member
of the team that manages High-Yield since its inception. She joined American
Century in June 1997. Prior to joining American Century, she was an
Assistant Portfolio Manager with Smith Barney Mutual Funds Management, Inc.
She has a bachelor's degree in economics from the University of Virginia.
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return an application along with an investment check payable
to American Century Investments
* If you already have an American Century account, call us or access our Web
site to 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 and
Roth IRAs). If your redemption activity causes the value of your account to
fall 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 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.
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 will find more information about these choices in Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or 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
a 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
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-3533
Visit our Web site at WWW.AMERICANCENTURY.COM
SH-PRF-17899 9910 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg.sm)]
American
Century
Limited-Term Bond Fund
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.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
OCTOBER 25, 1999
INVESTOR CLASS
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.
LIMITED-TERM BOND FUND
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
fund managers 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 managers actively manage 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 fiscal
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. This interest rate risk is
higher for Limited-Term Bond 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 (for example, Baa or BBB). Although these
securities are considered investment grade, the issuers of these securities
are more likely to pose a credit risk, that is, to have problems making
interest and principal payments than issuers of higher-rated securities.
* As with all funds, your shares may be worth more or less at any given time
than the price you paid for them. 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 (FDIC) 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. The bar chart and the performance
information below are not intended to indicate how the fund will perform in
the future.
[data shown in bar chart]
Calendar Year-By-Year Returns (1)
1998 1997 1996 1995
Limited-Term Bond 6.30% 6.41% 4.42% 10.94%
(1) As of September 30, 1999, the end of the most recent calendar
quarter, Limited-Term Bond's year-to-date return was 2.11%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
Limited-Term Bond 3.20% (2Q 1995) 0.20% (1Q 1996)
Limited-Term Bond American Century Investments
The following table shows the average annual total returns 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 performance comparisons. For
current performance information, including yields, please call us or access
our Web site.
<TABLE>
1 YEAR 5 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1999)
<S> <C> <C> <C>
Limited-Term Bond 2.55% 5.98% 5.32%
Merrill Lynch 1- to 5-Year
Government/Corporate Index 2.33% 6.75% 5.96%
</TABLE>
(1) The inception date for Limited-Term Bond is March 1, 1994.
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
* to redeem your shares
The following table describes the fees and expenses that you will 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 0.00%(1)
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 and interest, were less
than 0.005% for the most recent fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as 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. Identified below are the portfolio
managers for the Limited-Term Bond fund:
JEFFREY L. HOUSTON, Vice President and 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 from the University of
Delaware and an MPA from Syracuse University. He is a Chartered Financial
Analyst.
JOHN F. WALSH, Portfolio Manager, has been a member of the team that manages
Limited-Term Bond since January 1999. He joined American Century in February
1996 as an Investment Analyst. Prior to joining American Century, he served
as an Assistant Vice President and Analyst at First Interstate Bank, Los
Angeles from July 1993 to January 1996. He has a bachelor's degree in
marketing from Loyola Marymount and an MBA in finance from Creighton
University.
Limited-Term Bond Fund Profile
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return an application along with an investment check payable
to American Century Investments
* If you already have an American Century account, call us or access our Web
site to 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 and
Roth IRAs). If your redemption activity causes the value of your account to
fall 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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or 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
a 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
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-3533
Visit our Web site at WWW.AMERICANCENTURY.COM
SH-PRF-17900 9910 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg.sm)]
American
Century
Intermediate-Term Bond Fund
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.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
OCTOBER 25, 1999
INVESTOR CLASS
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.
INTERMEDIATE-TERM BOND FUND
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 managers buy 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 fund managers 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 managers actively manage 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 10
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 fiscal
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. This interest rate risk is
higher for Intermediate-Term Bond 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 (for example, Baa or BBB). Although these
securities are considered investment grade, the issuers of these securities
are more likely to pose a credit risk, that is, to have problems making
interest and principal payments than issuers of higher-rated securities.
* As with all funds, your shares may be worth more or less at any given time
than the price you paid for them. 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 (FDIC) 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. The bar chart and the
performance information below are not intended to indicate how the fund will
perform in the future.
[data shown in bar chart]
Calendar Year-By-Year Returns (1)
1998 1997 1996 1995
Intermediate-Term Bond 7.46% 8.20% 3.26% 15.12%
(1) As of September 30, 1999, the end of the most recent calendar
quarter, Intermediate-Term Bond's year-to-date return was -0.54%.
Intermediate-Term Bond American Century Investments
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
Intermediate-Term Bond 4.77% (2Q 1995) -1.38% (1Q 1996)
The following table shows the average annual total returns 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 performance comparisons. For current
performance information, including yields, please call us or access our Web
site.
<TABLE>
1 YEAR 5 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1999)
<S> <C> <C> <C>
Intermediate-Term Bond -0.69% 6.56% 5.63%
Lehman Intermediate
Government/Corporate Index 0.63% 7.06% 6.02%
</TABLE>
(1) The inception date for Intermediate-Term Bond is March 1, 1994.
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 fund
* to redeem your shares
The following table describes the fees and expenses that you will 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 0.00%(1)
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 and interest, were less
than 0.005% for the most recent fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as 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. Identified below is the portfolio
manager who leads the team that manages Intermediate-Term Bond:
JEFFREY L. HOUSTON, Vice President and Portfolio Manager, has been a member
of the team that manages Intermediate-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 from the University of
Delaware and an MPA from Syracuse University. He is a Chartered Financial
Analyst.
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return an application along with an investment check payable
to American Century Investments
* If you already have an American Century account, call us or access our Web
site to 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 and
Roth IRAs). If your redemption activity causes the value of your account to
fall below this account minimum, your shares may be redeemed involuntarily.
Intermediate-Term Bond Fund Profile
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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or 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
a 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
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-3533
Visit our Web site at WWW.AMERICANCENTURY.COM
SH-PRF-17901 9910 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg.sm)]
American
Century
Bond Fund
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.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
OCTOBER 25, 1999
INVESTOR CLASS
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.
BOND FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
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 fund managers 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 managers actively manage 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 invest primarily 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 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 fiscal 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 is
higher for Bond 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 (for example, Baa or BBB). Although these
securities are considered investment grade, the issuers are more likely to
pose a credit risk, that is, to have problems making interest and principal
payments than issuers of higher-rated securities.
* As with all funds, your shares may be worth more or less at any given time
than the price you paid for them. 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 (FDIC) or any other
government agency.
In summary, 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 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. The bar
chart and the performance information below are not intended to indicate how
the fund will perform in the future.
<TABLE>
[data shown in bar chart]
Calendar Year-By-Year Returns (1)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
Bond 6.56% 8.75% 2.43% 20.28% -4.49% 10.15% 5.60% 17.50% 6.04% 13.97%
</TABLE>
(1) As of September 30, 1999, the end of the most recent calendar
quarter, Bond's year-to-date return was -1.86%.
Bond American Century Investments
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
Bond 9.11% (2Q 1989) -3.58% (1Q 1990)
The following table shows the average annual total returns 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 performance comparisons. For current performance information,
including yields, please call us or access our Web site.
<TABLE>
1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1999)
<S> <C> <C> <C> <C>
Bond -2.62% 7.02% 7.24% 7.01%
Lehman Aggregate
Bond Index -0.37% 7.84% 8.10% 7.93%(2)
</TABLE>
(1) The inception date for the fund is March 2, 1987.
(2) Since February 28, 1987, the date nearest the fund's inception for
which data are available.
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 fund
* to redeem your shares
The following table describes the fees and expenses that you will 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 0.00%(1)
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 and interest, were less
than 0.005% for the most recent fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as 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. Identified below are the portfolio
managers for the Bond team:
NORMAN E. HOOPS, Senior Vice President and Portfolio Manager, has been a
member of the team that manages 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 from
Indiana University and an MBA from Butler University.
JEFFREY L. HOUSTON, Vice President and Portfolio Manager, has been a member
of the team that manages 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 from the University of Delaware and an MPA from
Syracuse University. He is a Chartered Financial Analyst.
Bond Fund Profile
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return an application along with an investment check payable
to American Century Investments
* If you already have an American Century account, call us or access our Web
site to 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 and
Roth IRAs). If your redemption activity causes the value of your account to
fall 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 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?
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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or 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
a 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
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX 816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-3533
Visit our Web site at WWW.AMERICANCENTURY.COM
SH-PRF-17902 9910 Funds Distributor, Inc.
