[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg. sm)]
AMERICAN
CENTURY
Vista 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
thefund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[three photos of bubble blowing woman and child, business men, woman at
computer]
APRIL 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.
VISTA FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Vista seeks long-term capital growth by investing primarily in common
stocks.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers look for stocks of companies that they believe will
increase in value over time. A majority of the stocks selected are issued by
medium- and smaller-sized companies, although the fund may own stock of
larger companies, too. The fund managers use 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 managers
track financial information for thousands of companies to research and
select the stocks they believe 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 managers do not attempt to time the market. Instead, they intend to
keep Vista essentially fully invested in stocks regardless of the movement
of stock prices generally. When the fund managers believe that it is
prudent, they 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 Vista'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 Vista's shares depends on the value of the stocks and other
securities it owns. The value of the individual securities that the fund
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 managers 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 managers believe 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.
* As with all funds, at any given time the value of your shares of Vista 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 (FDIC) 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.
* Because Vista generally invests in smaller companies than our similarly
managed Ultra and Growth funds, it may be more volatile, and subject to
greater short-term risk, than those funds.
* Although the fund managers invest the fund's assets primarily in U.S.
stocks, Vista 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.
Vista American Century Investments
In summary, Vista is intended for investors who seek long-term 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 Vista'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.
[bar chart]
Calendar Year-By-Year Returns (1)
1998 -14.25%
1997 8.68%
1996 7.56%
1995 46.13%
1994 4.68%
1993 5.45%
1992 -2.13%
1991 73.69%
1990 -15.73%
1989 52.20%
(1) As of March 31, 1999, the end of the most recent calendar
quarter, Vista's year-to-date return was 3.10%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
Vista 33.24% (1Q 1991) -29.82% (3Q 1990)
The following table shows the average annual return of the fund's Investor
Class shares for the periods indicated. The Russell 2500 Growth Index, an
unmanaged index that reflects no operating costs, is included as a benchmark
for performance comparisons.
1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED MARCH 31, 1999)
Vista -17.63% 7.42% 10.35% 10.11%
Russell 2500
Growth Index -8.22% 12.84% 12.74% N/A(2)
(1) The inception date for the fund is November 25, 1983.
(2) Benchmark began January 1, 1986.
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 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
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
$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 on the Vista
team are identified as follows:
Fund Profile Vista
GLENN A. FOGLE, Vice President and Portfolio Manager, has been a member of
the team that manages Vista since March 1993. He joined American Century in
September 1990 as an Investment Analyst. He has a bachelor of arts and an
MBA from Texas Christian University. He is a Chartered Financial Analyst.
ARNOLD K. DOUVILLE, Vice President and Portfolio Manager, has been a member
of the team that manages Vista since joining American Century in November
1997. Before joining American Century, he served as Senior Portfolio Manager
for Munder Capital Management from September 1989 to October 1997. He has a
bachelor's degree in economics from the U.S. Air Force Academy and an MBA in
finance, statistics and economics from the University of Chicago.
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 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 Vista 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?
Vista 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.
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 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 [link to web site with arrow]
SH-PRF-16099 9904 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg. sm)]
AMERICAN
CENTURY
Balanced 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
thefund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[three photos of bubble blowing woman and child, business men, woman at
computer]
APRIL 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.
BALANCED FUND
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 managers utilize
quantitative management techniques in a two-step process that draws heavily
on computer technology. In the first step, the fund managers rank 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 managers use ratios
of stock price-to-book value and stock price-to-cash flow, among others. To
measure growth, the managers use, among others, the rate of growth of a
company's earnings and changes in its earnings estimates.
In the second step, the managers use a technique called portfolio
optimization. In portfolio optimization, the managers use a computer model
to build a portfolio of stocks from the ranking described earlier that they
think 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 and fifth highest categories.
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 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 Balanced's shares depends on the value of the stocks, bonds
and other securities it owns. The value of the individual equity securities
that the fund 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 is
higher for Balanced 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.
* 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.
Balanced American Century Investments
* Although the fund managers invest the fund's assets primarily 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 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. 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 16.29%
1997 16.93%
1996 12.61%
1995 21.37%
1994 -0.07%
1993 7.24%
1992 -6.06%
1991 46.86%
1990 1.82%
1989 25.61%
(1) As of March 31, 1999, the end of the most recent calendar
quarter, Balanced's year-to-date return was -0.32%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
Balanced 15.95% (4Q 1991) -11.22% (3Q 1990)
The following table shows the average annual return of the fund's Investor
Class shares for the periods indicated. The S&P 500 Index and the Lehman
Aggregate Bond Index, unmanaged indices that reflect no operating costs, are
blended as a benchmark for performance comparisons. The fund's benchmark was
changed to the Lehman Aggregate Bond Index beginning November 1, 1998. The
fund's advisor believes this index better represents the broad U.S. taxable
bond market. The Lehman Aggregate Bond Index includes mortgage-backed
securities, while the fund's previous index did not.
1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED MARCH 31, 1999)
Balanced 7.40% 13.22% 13.09% 12.63%
S&P 500 18.42% 26.19% 18.92% 18.72%
Lehman Intermediate
Government/
Corporate Index 6.57% 7.00% 8.38% 8.07%(4)
Blended Index(2) 13.70% 18.55% 14.73% 14.60%(4)
Lehman Aggregate
Bond Index 6.49% 7.79% 9.08% 8.70%(4)
Blended Index(3) 13.67% 18.87% 15.01% 14.86%(4)
(1) The inception date for Balanced is October 20, 1988.
(2) The Blended Index is a combination of two widely known indices in
proportion to the approximate asset mix of the fund. Accordingly, 60% of
the Blended Index consists of the performance of the S&P 500 Index,
which represents the equity portion of the fund, and 40% of the Blended
Index consists of the Lehman Intermediate Government/Corporate Index,
which represents the fixed-income portion.
(3) The Blended Index is a combination of two widely known indices in
proportion to the approximate asset mix of the fund. Accordingly, 60% of
the Blended Index consists of the performance of the S&P 500 Index,
which represents the equity portion of the fund, and 40% of the Blended
Index consists of the Lehman Aggregate Bond Index, which represents the
fixed-income portion.
(4) Benchmark from October 31, 1988.
Fund Profile Balanced
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 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
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
$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 on the Balanced
team are identified as follows:
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 from Purdue University and an
MBA in finance from the 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, Vice President and 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.
JOHN F. WALSH, Portfolio Manager, has been a member of the team that manages
Balanced 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,
California, 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.
Balanced American Century Investments
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 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 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
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 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.
Fund Profile Balanced
[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 [link to web site with arrow]
SH-PRF-16105 9904 Funds Distributor, Inc.
<PAGE>
[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
thefund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[three photos of bubble blowing woman and child, business men, woman at
computer]
APRIL 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, 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.
* 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 March 31, 1999, the end of the most recent calendar
quarter, High-Yield's year-to-date return was 3.63%.
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 return 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 MARCH 31, 1999)
High-Yield -2.41% 2.77%
DLJ High Yield Index -0.73% 3.00%
(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 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 0.90%
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
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. The portfolio managers on the
High-Yield team are identified as follows:
Fund Profile High-Yield
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?
* 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
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 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 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 [link to web site with arrow]
SH-PRF-16113 9904 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
thefund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[three photos of bubble blowing woman and child, business men, woman at
computer]
APRIL 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 (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 (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.
[bar chart]
Calendar Year-By-Year Returns (1)
1998 6.30%
1997 6.41%
1996 4.42%
1995 10.94%
(1) As of March 31, 1999, the end of the most recent calendar
quarter, Limited-Term Bond's year-to-date return was 0.80%.
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 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 performance comparisons. For current
performance information, including yields, please call us or access our Web
site.
1 YEAR 5 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED MARCH 31, 1999)
Limited-Term Bond 5.75% 5.82% 5.59%
Merrill Lynch 1- to 5-Year
Government/Corporate Index 6.48% 6.60% 6.29%
(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 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 0.70%
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
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. The portfolio managers on the
Limited-Term Bond team are identified as follows:
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.
Fund Profile Limited-Term Bond
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
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 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 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 [link to web site with arrow]
SH-PRF-16115 9904 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.
[three photos of bubble blowing woman and child, business men, woman at
computer]
APRIL 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 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 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 (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 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 (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.
[bar chart]
Calendar Year-By-Year Returns (1)
1998 6.56%
1997 8.75%
1996 2.43%
1995 20.28%
1994 -4.49%
1993 10.15%
1992 5.60%
1991 17.50%
1990 6.04%
1989 13.97%
(1) As of March 31, 1999, the end of the most recent calendar
quarter, Bond's year-to-date return was -0.75%.
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 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 performance comparisons. For current performance information, including
yields, please call us or access our Web site.
1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED MARCH 31, 1999)
Bond 4.32% 6.95% 8.34% 7.41%
Lehman Aggregate
Bond Index 6.49% 7.79% 9.08% 8.29%(2)
(1) The inception date for the fund is March 2, 1987.
(2) Benchmark from February 28, 1987.
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(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
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. The portfolio managers of the Bond team
are identified as follows:
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.
Fund Profile Bond
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
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 a 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 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 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 [link to web site with arrow]
SH-PRF-16117 9904 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
thefund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[three photos of bubble blowing woman and child, business men, woman at
computer]
APRIL 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 (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 (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.
[bar chart]
Calendar Year-By-Year Returns (1)
1998 7.46%
1997 8.20%
1996 3.26%
1995 15.12%
(1) As of March 31, 1999, the end of the most recent calendar
quarter, Intermediate-Term Bond's year-to-date return was -0.05%.
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)
Intermediate-Term Bond American Century Investments
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 performance comparisons. For current
performance information, including yields, please call us or access our Web
site.
1 YEAR 5 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED MARCH 31, 1999)
Intermediate-Term Bond 5.75% 6.72% 6.31%
Lehman Intermediate
Government/Corporate Index 6.57% 7.00% 6.53%
(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(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
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. The portfolio manager who leads the
team that manages Intermediate-Term Bond is identified as follows:
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?
* 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
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.
Fund Profile Intermediate-Term Bond
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 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 [link to web site with arrow]
SH-PRF-16116 9904 Funds Distributor, Inc.
