PROSPECTUS SUPPLEMENT
American Century California Tax-Free
and Municipal Funds
American Century Municipal Trust
Supplement dated
December 29, 1997 to
American Century California Tax-Free
and Municipal Funds
Prospectus dated December 15, 1997
and to
American Century Municipal Trust
Prospectus dated September 2, 1997
On page 19 in each of the above referenced prospectuses, the language under the
heading "CASH MANAGEMENT" is deleted and replaced with the following:
Each of the funds may invest up to 5% of its total assets in any money
market fund, including those advised by the manager, provided that the
investment is consistent with the fund's investment policies and
restrictions.
[american century logo]
American
Century(reg.sm)
P.O. Box 419200 *Kansas City, Missouri 64141-6200
Investor Services:
1-800-345-2021 or 816-531-5575
www.americancentury.com
American Century Investment Services, Inc.
Copyright 1997 American Century Services Corporation
SH-SPL-11079 9801
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SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
American Century California Tax-Free and Municipal Funds
American Century Municipal Trust
Supplement dated December 29, 1997 to
American Century California Tax-Free and Municipal Funds
Statement of Additional Information dated December 15, 1997,
and to
American Century Municipal Trust
Statement of Additional Information dated September 2, 1997
On page 6 in the Statement of Additional Information of American Century
California Tax-Free and Municipal Funds, the second paragraph under the heading
"SHORT-TERM SECURITIES (VARIABLE-PRICE FUNDS)" is deleted.
On page 6 in the Statement of Additional Information of American Century
California Tax-Free and Municipal Funds, please insert the following paragraph
above the section titled "CONCENTRATION OF ASSETS IN OBLIGATIONS ISSUED TO
FINANCE SIMILAR PROJECTS OR FACILTIES":
OTHER INVESTMENT COMPANIES
Each of the funds may invest up to 5% of its total assets in any money
market fund, including those advised by the manager, provided that the
investment is consistent with the fund's investment policies and
restrictions. Under the Investment Company Act of 1940 (the "Investment
Company Act"), the fund's investment in such securities, subject to certain
exceptions, currently is limited to (a) 3% of the total voting stock of any
one investment company, (b) 5% of the fund's total assets with respect to
any one investment company and (c) 10% of the fund's total assets in the
aggregate. Such purchases will be made in the open market where no
commission or profit to a sponsor or dealer results from the purchase other
than the customary brokers' commissions. As a shareholder of another
investment company, a fund would bear, along with other shareholders, its
pro rata portion of the other investment company's expenses, including
advisory fees. These expenses would be in addition to the management fee
that each fund bears directly in connection with its own operations.
On page 8 in the Statement of Additional Information of American Century
Municipal Trust, please delete the first sentence under the heading "OTHER
INVESTMENT COMPANIES" and replace with the following:
Each of the funds may invest up to 5% of its total assets in any money
market fund, including those advised by the manager, provided that the
investment is consistent with the fund's investment policies and
restrictions.
[american century logo]
American
Century(reg.sm)
P.O. Box 419200
Kansas City, Missouri
64141-6200
1-800-345-2021 or 816-531-5575
SH-SPL-11080 9801