AMERICAN CENTURY CALIFORNIA TAX-FREE AND MUNICIPAL FUNDS
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
SUPPLEMENT DATED FEBRUARY 28, 1998 TO Statement of
Additional Information dated December 15, 1997
ON PAGE 6, PLEASE DELETE THE SECOND PARAGRAPH UNDER THE HEADING "SHORT-TERM
SECURITIES (VARIABLE-PRICE FUNDS)."
ON PAGE 6, PLEASE INSERT THE FOLLOWING PARAGRAPH ABOVE THE SECTION TITLED
"CONCENTRATION OF ASSETS IN OBLIGATIONS ISSUED TO FINANCE SIMILAR PROJECTS OR
FACILITIES":
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 16, PLEASE INSERT THE FOLLOWING PARAGRAPH ABOVE THE SECTION TITLED
"TAXES":
MULTIPLE CLASS PERFORMANCE ADVERTISING
Pursuant to the Multiple Class Plan, the funds may issue additional classes
of existing funds or introduce new funds with multiple classes available for
purchase. To the extent a new class is added to an existing fund, the manager
may, in compliance with SEC and NASD rules, regulations and guidelines, market
the new class of shares using the historical performance information of the
original class of shares. When quoting performance information for the new class
of shares for periods prior to the first full quarter after inception, the
original class' performance will be restated to reflect the expenses of the new
class and for periods after the first full quarter after inception, actual
performance of the new class will be used.
ON PAGE 20, PLEASE DELETE THE REFERENCES TO JAMES M. BENHAM AND JAMES E. STOWERS
III UNDER THE HEADING OF "TRUSTEES AND OFFICERS-TRUSTEES" AND INSERT THE
FOLLOWING:
*WILLIAM M. LYONS, Trustee (1998). Mr. Lyons is President, Chief Operating
Officer and General Counsel of ACC; Executive Vice President and General Counsel
of ASC and ACIS; Assistant Secretary of ACC; and Secretary of ACS and ACIS.
*JAMES E. STOWERS III, Chairman of the Board of Trustees (1998) and Trustee
(1995). Mr. Stowers III is Chief Executive Officer and Director of ACC, ACS and
ACIS.
ON PAGE 21, PLEASE DELETE THE PARAGRAPHS UNDER THE HEADING OF "TRUSTEES AND
OFFICERS-OFFICERS" AND REPLACE WITH THE FOLLOWING:
*RICHARD W. INGRAM, President (1998). Mr. Ingram is Executive Vice President
and Director of Client Services and Treasury Administration, Funds Distributor,
Inc. (FDI). Mr. Ingram joined FDI in 1995. Prior to joining FDI, Mr. Ingram
served as Vice President and Division Manager of First Data Investor Services
Group, Inc. (from March 1994 to November 1995) and before that as Vice
President, Assistant Treasurer and Tax Director - Mutual Funds of The Boston
Company, Inc. (from 1989 to 1994).
*DOUGLAS A. PAUL, Secretary (1988), Vice President (1990), and General
Counsel (1990). Mr. Paul is Vice President and Associate General Counsel of ACS.
*MARYANNE ROEPKE, CPA, Treasurer (1995) and Vice President (1998). Ms.
Roepke is Vice President and Assistant Treasurer of ACS.
*CHRISTOPHER J. KELLEY, Vice President (1998). Mr. Kelley is Vice President
and Associate General Counsel of FDI. Mr. Kelley joined FDI in 1996. Prior to
joining FDI, Mr. Kelley served as Assistant Counsel at Forum Financial Group
(from April 1994 to July 1996) and before that as a compliance officer for
Putnam Investments (from 1992 to 1994).
*MARY A. NELSON, Vice President (1998). Ms. Nelson is Vice President and
Manager of Treasury Services and Administration of FDI. Ms. Nelson joined FDI in
1995. Prior to joining FDI, Ms. Nelson served as Assistant Vice President and
Client Manager for The Boston Company, Inc. (from 1989 to 1994).
*PATRICK A. LOOBY, Vice President and Assistant Secretary (1998). Mr. Looby
is Vice President and Associate General Counsel of ACS.
*JON ZINDEL, Tax Officer (1997). Mr. Zindel has been Director of Taxation of
ACS since 1996. Prior to joining ACS, he was Tax Manager, Price Waterhouse LLP
(1989).
*C. JEAN WADE, Controller, (1996).
ON PAGE 25, PLEASE DELETE THE FIRST SENTENCE UNDER THE HEADING "DISTRIBUTION OF
FUND SHARES" AND REPLACE WITH THE FOLLOWING:
The Funds' shares are distributed by FDI, a registered broker-dealer.
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American
Century(reg.sm)
P.O. Box 419200
Kansas City, Missouri
64141-6200
1-800-345-2021 or 816-531-5575
SH-SPL-11695 9802
