FUND PROFILE
Ultra
INVESTOR CLASS
January 15, 1999
[american century logo (reg.sm)]
American
Century
- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus has additional information about the
fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest. You may
obtain the Prospectus and other information about the fund at no cost by
calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
TWENTIETH CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
ULTRA
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Ultra 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 medium to large companies that they
believe will increase in value over time. 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 it believes will be able to sustain accelerating growth.
This strategy is based on the premise that, over the long term, the stocks
of companies with accelerating earnings and revenues have a
greater-than-average chance to increase in value. This aggressive
investment strategy, which pursues superior long-term returns for fund
shareholders, also results in the risks described in the next section.
The fund managers do not attempt to time the market. Instead, they
intend to keep Ultra 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 Ultra'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 Ultra'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 Ultra
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.
*Although the fund managers invest the fund's assets primarily in U.S.
stocks, Ultra can invest in securities of foreign companies. Foreign
securities can have certain unique risks, including fluctuations in
currency exchange rates, unstable political and economic structures,
reduced availability of public information and lack of uniform financial
reporting and regulatory practices similar to those that apply to U.S.
issuers.
In summary, Ultra 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.
ULTRA AMERICAN CENTURY INVESTMENTS
FUND PERFORMANCE
The following bar chart shows the actual performance of Ultra's Investor
Class shares for each of the last 10 calendar years. The bar chart
indicates the volatility of the fund's historical returns from year to
year. Neither the bar chart nor the performance information below it is
intended to indicate how the fund will perform in the future.
[bar chart]
-------------------------------------------------------------------------
CALENDAR YEAR-BY-YEAR RETURNS
-------------------------------------------------------------------------
1998 34.55%
1997 23.13%
1996 13.85%
1995 37.68%
1994 -3.62%
1993 21.81%
1992 1.27%
1991 86.45%
1990 9.36%
1989 36.94%
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter during the period reflected by the preceding bar chart are
provided in the following chart to indicate the fund's historical
short-term volatility. Shareholders should be aware, however, that Ultra is
intended for investors with a long-term investment horizon and is not
managed for short-term results.
[bar chart]
-------------------------------------------------------------------------
HIGHEST AND LOWEST QUARTERLY RETURNS
-------------------------------------------------------------------------
Quarter Ended 12/31/91 40.75%
Quarter Ended 9/30/90 -16.16%
The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The S&P 500 Index, an
unmanaged index that reflects no operating costs, is included as a
benchmark for performance comparisons.
1 YEAR 5 YEARS 10 YEARS
-------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
-------------------------------------------------------------------------
Ultra 34.55% 20.14% 24.03%
S&P 500 Index 28.68% 24.05% 19.17%
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class shares of other American Century funds
or to redeem your shares. The following table describes the fees and
expenses that you 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 your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$102 $318 $551 $1,219
Of course, actual costs may be higher or lower. Use this example
to compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment
advisory and management services for the fund. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio managers on the Ultra
team are identified below:
JAMES E. STOWERS III, Chief Executive Officer and Portfolio Manager,
joined American Century as a portfolio manager of Ultra and other American
Century growth- oriented funds in 1981. He has a bachelor's degree in
finance from Arizona State University.
FUND PROFILE ULTRA
JOHN R. SYKORA, Portfolio Manager, has been a member of the team that
manages Ultra since November 1997. He joined American Century in May 1994
as an Investment Analyst and was promoted to Portfolio Manager in August
1997. Before joining American Century, he served as a Financial Analyst for
Business Men's Assurance Company of America, Kansas City, Missouri from
August 1993 to April 1994. He has a bachelor's degree in accounting finance
and an MBA in finance from Michigan State University. He is a Chartered
Financial Analyst.
BRUCE A. WIMBERLY, Portfolio Manager, has been a member of the team that
manages Ultra since July 1996. He joined American Century in September 1994
as an Investment Analyst. Before joining American Century, he attended
Kellogg Graduate School of Management, Northwestern University from August
1992 to August 1994, where he obtained his MBA in finance. He also has a
bachelor of arts from Middlebury College.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in Ultra 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?
Ultra 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 through a financial intermediary
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo (reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS; ENDOWMENTS; KEOGH; SEP- , SARSEP- , AND
SIMPLE-IRA; AND 403(B) SERVICES 1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
SH-PRF-14834 9901 Funds Distributor, Inc.
<PAGE>
FUND PROFILE
Vista
INVESTOR CLASS
January 15, 1999
[american century logo (reg.sm)]
American
Century
- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus has additional information about the
fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest. You may
obtain the Prospectus and other information about the fund at no cost by
calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
TWENTIETH CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
VISTA
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. Neither the bar chart nor the performance information below it is
intended to indicate how the fund will perform in the future.
[bar chart]
-------------------------------------------------------------------------
CALENDAR YEAR-BY-YEAR RETURNS
-------------------------------------------------------------------------
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%
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter during the period reflected by the preceding bar chart are
provided in the following chart to indicate the fund's historical
short-term volatility. Shareholders should be aware, however, that Vista is
intended for investors with a long-term investment horizon and is not
managed for short-term results.
[bar chart]
-------------------------------------------------------------------------
HIGHEST AND LOWEST QUARTERLY RETURNS
-------------------------------------------------------------------------
Quarter Ended 3/31/91 33.24%
Quarter Ended 9/30/90 -29.82%
The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. Unlike an index fund,
Vista makes no attempt to match the benchmark over short-term periods. 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
-------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
-------------------------------------------------------------------------
Vista -14.25% 5.20% 11.47%
Russell 2500 Growth Index 3.10% 12.41% 13.69%
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class shares of other American Century funds
or to redeem your shares. The following table describes the fees and
expenses that you 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 your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$102 $318 $551 $1,219
Of course, actual costs may be higher or lower. Use this example
to compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment
advisory and management services for the fund. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio managers on the Vista
team are as follows:
FUND PROFILE VISTA
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.
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.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in 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 through a financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo (reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI
64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS; ENDOWMENTS; KEOGH; SEP- , SARSEP- , AND
SIMPLE-IRA; AND 403(B) SERVICES 1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
SH-PRF-14835 9901 Funds Distributor, Inc.
<PAGE>
FUND PROFILE
Growth
INVESTOR CLASS
January 15, 1999
[american century logo (reg.sm)]
American
Century
- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus has additional information about the
fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest. You may
obtain the Prospectus and other information about the fund at no cost by
calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
TWENTIETH CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
GROWTH
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Growth seeks long-term capital growth by investing primarily in common
stocks.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers look for large company stocks that they believe will
increase in value over time. 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 Growth 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 Growth'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 Growth'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 Growth
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.
*Although the fund managers invest the fund's assets primarily in U.S.
stocks, Growth can invest in securities of foreign companies. Foreign
securities can have certain unique risks, including fluctuations in
currency exchange rates, unstable political and economic structures,
reduced availability of public information and lack of uniform financial
reporting and regulatory practices similar to those that apply to U.S.
issuers.
In summary, Growth 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.
GROWTH AMERICAN CENTURY INVESTMENTS
FUND PERFORMANCE
The following bar chart shows the actual performance of Growth's
Investor Class shares for each of the last 10 calendar years. The bar chart
indicates the volatility of the fund's historical returns from year to
year. Neither the bar chart nor the performance information below it is
intended to indicate how the fund will perform in the future.
[bar chart]
-------------------------------------------------------------------------
CALENDAR YEAR-BY-YEAR RETURNS
-------------------------------------------------------------------------
1998 36.77%
1997 29.28%
1996 15.01%
1995 20.35%
1994 -1.49%
1993 3.76%
1992 -4.29%
1991 69.02%
1990 -3.85%
1989 43.13%
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter during the period reflected by the preceding bar chart are
provided in the following chart to indicate the fund's historical
short-term volatility. Shareholders should be aware, however, that Growth
is intended for investors with a long-term investment horizon and is not
managed for short-term results.
[bar chart]
-------------------------------------------------------------------------
HIGHEST AND LOWEST QUARTERLY RETURNS
-------------------------------------------------------------------------
Quarter Ended 3/31/91 28.45%
Quarter Ended 9/30/90 -19.44%
The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The Russell 1000 Growth
Index, an unmanaged index that reflects no operating costs, is included as
a benchmark for performance comparisons.
1 YEAR 5 YEARS 10 YEARS
-------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
-------------------------------------------------------------------------
Growth 36.77% 19.24% 18.73%
Russell 1000 Growth Index 38.71% 25.70% 20.57%
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class shares of other American Century funds
or to redeem your shares. The following table describes the fees and
expenses that you 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 your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$102 $318 $551 $1,219
Of course, actual costs may be higher or lower. Use this example
to compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment
advisory and management services for the fund. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio managers on the Growth
team are identified below:
C. KIM GOODWIN, Vice President and Portfolio Manager, has been a member
of the team that manages Growth since joining American Century in October
1997. Before joining American Century, she served as Senior Vice President
and Portfolio Manager at Putnam Investments from May 1996 to September 1997
and Vice President and Portfolio Manager at
FUND PROFILE GROWTH
Prudential Investments from February 1993 to April 1996. She has a bachelor
of arts from Princeton University and an MBA in finance from the University
of Texas.
GREGORY J. WOODHAMS, Portfolio Manager, has been a member of the team
that manages Growth since he joined American Century in September 1997 as
an Investment Analyst. He was promoted to Portfolio Manager for the Growth
team in May 1998. Before joining American Century, he served as Vice
President and Director of Equity Research for Texas Commerce Bank, a
subsidiary of Chase Manhattan Bank. He has a bachelor's degree in economics
from Rice University and an MBA in economics from the University of
Wisconsin. He is a Chartered Financial Analyst.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in Growth 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?
Growth 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 through a financial intermediary
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo (reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI
64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS; ENDOWMENTS; KEOGH; SEP- , SARSEP- , AND
SIMPLE-IRA; AND 403(B) SERVICES 1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX 816-340-7962
SH-PRF-14838 9901 Funds Distributor, Inc.
<PAGE>
FUND PROFILE
Select
INVESTOR CLASS
January 15, 1999
[american century logo (reg.sm)]
American
Century
- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus has additional information about the
fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest. You may
obtain the Prospectus and other information about the fund at no cost by
calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
TWENTIETH CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
SELECT
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Select 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 large companies that they believe
will increase in value over time. Eighty percent of Select's assets must be
invested in securities of companies that pay regular dividends, or have
committed to pay dividends, or otherwise produce income. This reflects the
fund managers' strategy to buy stocks of companies that are successful
enough to pay dividends. The amount of dividends may not be significant,
however, since stocks are not picked based upon the amount of income they
produce. The remaining 20% of fund assets may be invested in any other
stocks, bonds or cash that the fund managers believe will help the fund
achieve its objective.
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 Select 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 Select'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 Select'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 Select
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.
*Although the fund managers invest the fund's assets primarily in U.S.
stocks, Select 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.
SELECT AMERICAN CENTURY INVESTMENTS
In summary, Select 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 Select's
Investor Class shares for each of the last 10 calendar years. The bar chart
indicates the volatility of the fund's historical returns from year to
year. Neither the bar chart nor the performance information below it is
intended to indicate how the fund will perform in the future.
[bar chart]
-------------------------------------------------------------------------
CALENDAR YEAR-BY-YEAR RETURNS
-------------------------------------------------------------------------
1998 35.65%
1997 32.19%
1996 19.22%
1995 22.67%
1994 -8.04%
1993 14.67%
1992 -4.45%
1991 31.58%
1990 -0.41%
1989 39.51%
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter during the period reflected by the preceding bar chart are
provided in the following chart to indicate the fund's historical
short-term volatility. Shareholders should be aware, however, that Select
is intended for investors with a long-term investment horizon and is not
managed for short-term results.
[bar chart]
-------------------------------------------------------------------------
HIGHEST AND LOWEST QUARTERLY RETURNS
-------------------------------------------------------------------------
Quarter Ended 12/31/98 22.30%
Quarter Ended 9/30/90 -13.12%
The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The S&P 500 Index, an
unmanaged index that reflects no operating costs, is included as a
benchmark for performance comparisons.
1 YEAR 5 YEARS 10 YEARS
-------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
-------------------------------------------------------------------------
Select 35.65% 19.25% 17.05%
S&P 500 Index 28.68% 24.05% 19.17%
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class shares of other American Century funds
or to redeem your shares. The following table describes the fees and
expenses that you 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 your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$102 $318 $551 $1,219
Of course, actual costs may be higher or lower. Use this example
to compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment
advisory and management services for the fund. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio managers on the Select
team are as follows:
FUND PROFILE SELECT
JEAN C. LEDFORD, Vice President and Portfolio Manager, has been a member
of the team that manages Select since joining American Century in January
1997. Prior to joining American Century, she worked for the State of
Wisconsin Investment Board as an Investment Director from 1994 to 1996, and
as an Assistant Investment Director from 1983 to 1994. She has a bachelor
of arts and an MBA in finance from the University of Wisconsin. She is a
Chartered Financial Analyst.
RICHARD S. WELSH, Portfolio Manager, has been a member of the team that
manages Select since May 1998. He joined American Century in August 1994 as
an Equity Research Analyst and was promoted to Investment Analyst in
January 1997. Prior to joining American Century, he served as Equity
Research Analyst for Brown Brothers Harriman & Company. He has a bachelor's
degree in economics from Boston University and an MBA in finance and
accounting from New York University.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in Select 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?
Select 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 through a financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo (reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS; ENDOWMENTS; KEOGH; SEP- , SARSEP- , AND
SIMPLE-IRA; AND 403(B) SERVICES 1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
SH-PRF-14837 9901 Funds Distributor, Inc.
<PAGE>
FUND PROFILE
Heritage
INVESTOR CLASS
January 15, 1999
[american century logo (reg.sm)]
American
Century
- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus has additional information about the
fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest. You may
obtain the Prospectus and other information about the fund at no cost by
calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
TWENTIETH CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
HERITAGE
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Heritage 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. Sixty percent of Heritage's assets must be invested
in securities of companies that pay regular dividends, or have committed to
pay dividends, or otherwise produce income. This signals an intent to buy
stocks of companies that are successful enough to pay dividends. The amount
of dividends may not be significant, however, since stocks are not picked
based upon the amount of income they produce. The remaining 40% of fund
assets may be invested in any other permissible securities that the fund
managers believe will help the fund achieve its objective.
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 Heritage 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 Heritage'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 Heritage'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 significant
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 Heritage
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.
*Although the fund can purchase securities of any size company, the fund
managers will tend to invest in medium- and smaller-sized companies with
smaller share trading volume.
*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.
*In times of rapid market expansion, the fund's holdings in dividend-paying
stocks may dampen its performance.
HERITAGE AMERICAN CENTURY INVESTMENTS
*Although the fund managers invest the fund's assets primarily in U.S.
stocks, Heritage can invest in securities of foreign companies. Foreign
securities can have certain unique risks, including fluctuations in
currency exchange rates, unstable political and economic structures,
reduced availability of public information and lack of uniform financial
reporting and regulatory practices similar to those that apply to U.S.
issuers.
In summary, Heritage 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 Heritage's
Investor Class shares for each of the last 10 calendar years. The bar chart
indicates the volatility of the fund's historical returns from year to
year. Neither the bar chart nor the performance information below it is
intended to indicate how the fund will perform in the future.
[bar chart]
-------------------------------------------------------------------------
CALENDAR YEAR-BY-YEAR RETURNS
-------------------------------------------------------------------------
1998 -0.15%
1997 19.35%
1996 15.31%
1995 26.66%
1994 -6.32%
1993 20.43%
1992 10.13%
1991 35.98%
1990 -9.16%
1989 35.06%
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter during the period reflected by the preceding bar chart are
provided in the following chart to indicate the fund's historical
short-term volatility. Shareholders should be aware, however, that Heritage
is intended for investors with a long-term investment horizon and is not
managed for short-term results.
[bar chart]
-------------------------------------------------------------------------
HIGHEST AND LOWEST QUARTERLY RETURNS
-------------------------------------------------------------------------
Quarter Ended 12/31/98 17.65%
Quarter Ended 9/30/98 -21.16%
The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The S&P 400 Index, an
unmanaged index that reflects no operating costs, is included as a
benchmark for performance comparisons because it is viewed as a proxy for
the mid-cap market. The companies comprising the index are, on average,
larger than the companies in which the fund invests. As a result,
differences in performance can be expected.
1 YEAR 5 YEARS 10 YEARS
-------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
-------------------------------------------------------------------------
Heritage -0.15% 10.27% 13.69%
S&P 400 Index 18.25% 18.67% 19.21%
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class shares of other American Century funds
or to redeem your shares. The following table describes the fees and
expenses that you 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 your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$102 $318 $551 $1,219
Of course, actual costs may be higher or lower. Use this example
to compare the costs of investing in other funds.
FUND PROFILE HERITAGE
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 Heritage
team are identified below:
HAROLD S. BRADLEY, Vice President and Portfolio Manager, has been a
member of the team that manages Heritage since March 1998. He joined
American Century in 1988 and for the past 10 years, has managed the global
equity, futures and foreign exchange trading activities for American
Century. He has a bachelor of arts from Marquette University.
LINDA K. PETERSON, Portfolio Manager, has been a member of the team that
manages Heritage since March 1998. She joined American Century in 1986. She
served as an Investment Analyst for American Century's growth-oriented
equity funds, including Heritage, from April 1994 until February 1998. She
has a bachelor's degree in finance from the University of Northern Iowa and
an MBA from the University of Missouri - Kansas City. She is a Chartered
Financial Analyst.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in Heritage for
shares in nearly 70 other mutual SH-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?
Heritage 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 through a financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo (reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS; ENDOWMENTS; KEOGH; SEP- , SARSEP- , AND
SIMPLE-IRA; AND 403(B) SERVICES 1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX 816-340-7962
SH-PRF-14836 9901
Funds Distributor, Inc.
<PAGE>
FUND PROFILE
High-Yield
INVESTOR CLASS
January 15, 1999
[american century logo (reg.sm)]
American
Century
- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus has additional information about the
fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest. You may
obtain the Prospectus and other information about the fund at no cost by
calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
BENHAM GROUP
AMERICAN CENTURY INVESTMENTS
HIGH-YIELD
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
High-Yield seeks high current income by investing in a diversified
portfolio of high-yielding corporate bonds, debentures and notes. As a
secondary objective, the fund seeks capital appreciation, but only when
consistent with the primary objective of maximizing current income.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund 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
XXXXXXXXXXXXXXXXXXXX#################################XXXXXXXXXXXXXXXXXXXXXXXX
XXX Denotes authorized quality
### Denotes expected quality range of at least 80% of total assets of the fund
Additional information about High-Yield's investments is available in
its annual and semiannual reports. In these reports you will find a
discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the most recent 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 amount of
income the fund generates will be affected. Generally, when interest rates
rise, the fund's income and its share value will decline. The opposite is
true when interest rates decline. 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.
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.
BENHAM HIGH-YIELD AMERICAN CENTURY INVESTMENTS
FUND PERFORMANCE
The following bar chart shows the actual performance of High Yield's
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. Neither the bar chart nor the performance
information below it is intended to indicate how the fund will perform in
the future.
[bar chart]
-------------------------------------------------------------------------
CALENDAR YEAR-BY-YEAR RETURNS
-------------------------------------------------------------------------
1998 -1.25%
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter during the period reflected by the preceding bar chart are
provided in the following chart to indicate the fund's historical
short-term volatility. Shareholders should be aware, however, that High
Yield is intended for investors with a long-term investment horizon and is
not managed for short-term results.
[bar chart]
-------------------------------------------------------------------------
HIGHEST AND LOWEST QUARTERLY RETURNS
-------------------------------------------------------------------------
Quarter Ended 3/31/98 4.86%
Quarter Ended 9/30/98 -7.18%
The following table shows the average annual return of the fund's 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.
1 YEAR LIFE OF FUND
-------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
-------------------------------------------------------------------------
High-Yield -1.25% 0.42%
DLJ High Yield Index 0.55% 1.82%
For current performance information, including yields, please call us or
access our Web site.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales charges, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class of other American Century funds, or to
redeem your shares. The following table describes the fees and expenses
that you 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 your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
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 as follows:
FUND PROFILE BENHAM 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 and MBA from Butler University
THERESA C. FENNELL, 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 the value of your account falls below this account
minimum, your shares may be redeemed involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You may also exchange your shares in High-Yield for
shares in nearly 70 other mutual funds offered by American Century.
Depending on the options you select when you open your account, some
restrictions may apply. For your protection, some redemption requests
require a signature guarantee.
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 through a financial intermediary
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo (reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS; ENDOWMENTS; KEOGH; SEP- , SARSEP- , AND
SIMPLE-IRA; AND 403(B) SERVICES 1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
SH-PRF-14839 9901 Funds Distributor, Inc.
