AMERICAN CENTURY CALIFORNIA TAX-FREE AND MUNICIPAL FUNDS, INC.
PROSPECTUS SUPPLEMENT
California Tax-Free Money Market
California Municipal Money Market
California Limited-Term Tax-Free
California Intermediate-Term Tax-Free
California Long-Term Tax-Free
California High-Yield Municipal
California Insured Tax-Free
SUPPLEMENT DATED AUGUST 20, 1998
Prospectus dated December 15, 1997
The following disclosure replaces the paragraph under the heading "Cash
Management" found on page 19.
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.
The following disclosure is added on page 27 of the Prospectus, following the
last paragraph under the heading "When Share Price is Determined."
We have contractual relationships with certain financial intermediaries in
which such intermediaries represent that they have systems to track the time at
which investment orders are received and to segregate orders received at
different times. Based on these representations, the Fund has authorized such
intermediaries and their designees to accept purchase and redemption orders on
the Fund's behalf up to the applicable cut-off time. The Fund will be deemed to
have received such orders upon acceptance by the duly authorized intermediary,
and such orders will be priced at the Fund's net asset value next determined
after acceptance on the fund's behalf by such intermediary.
The following disclosure is added following the last paragraph under the heading
"Transfer and Administrative Services" found on page 32 of the Prospectus.
Pursuant to a Sub-Administration Agreement with the manager, Funds
Distributor, Inc. (FDI) serves as the Co-Administrator for the Funds. FDI is
responsible for (i) providing certain officers of the Funds and (ii) reviewing
and filing marketing and sales literature on behalf of the Funds. The fees and
expenses of FDI are paid by the manager out of its unified fee.
YEAR 2000 ISSUES
Many of the world's computer systems currently cannot properly recognize or
process date-sensitive information relating to the Year 2000 and beyond. Because
this may impact the computer systems of various American Century-affiliated and
external service providers for the funds, American Century formally initiated a
Year 2000 readiness project in July 1997. It involves a team of information
technology professionals assisted by outside consultants and guided by a
senior-level steering committee. The team's goal is to assess the impact of the
Year 2000 on American Century's systems, renovate or replace noncompliant
critical systems and test those systems. In addition, the team has been working
to gather information about the Year 2000 efforts of the funds' other major
service providers. Although American Century believes its critical systems will
function properly in the Year 2000, this is not guaranteed. If the efforts of
American Century or its external service providers are not successful, the
funds' business, particularly its ability to provide shareholder services, may
be hampered.
In addition, the issuers of securities the funds own could have Year 2000
computer problems. These problems could negatively affect the value of their
securities, which, in turn, could impact the funds' performance. The manager has
established a process to gather publicly available information about the Year
2000 readiness of these issuers. However, this process may not uncover all
relevant information, and the information gathered may not be complete and
accurate. Moreover, an issuer's Year 2000 readiness is only one of many factors
the manager may consider when making investment decisions, and other factors may
receive greater weight.
The following disclosure replaces the first sentence under the heading
"Distribution of Fund Shares" found on page 32 of the Prospectus.
The funds' shares are distributed by FDI, a registered broker-dealer. FDI
is a wholly-owned indirect subsidiary of Boston Institutional Group, Inc. FDI's
principal business address is 60 State Street, Suite 1300, Boston, Massachusetts
02109.
The following disclosure should be inserted as the last paragraph under the
heading "Distribution of Fund Shares" on page 32 of the Prospectus.
Investors may open accounts with American Century only through the
distributor. All purchase transactions in the Funds offered by this Prospectus
are processed by the transfer agent, which is authorized to accept any
instructions relating to fund accounts. All purchase orders must be accepted by
the distributor. All fees and expenses of FDI in acting as distributor for the
funds are paid by the manager.
[american century logo(reg.sm)]
American
Century(reg.tm)
P.O. Box 419200
Kansas City, Missouri
64141-6200
1-800-345-2021 or 816-531-5575
SH-SPL-13718 9808
<PAGE>
AMERICAN CENTURY CALIFORNIA TAX-FREE AND MUNICIPAL FUNDS, INC.
BROKERAGE PROSPECTUS SUPPLEMENT
California Tax-Free Money Market
SUPPLEMENT DATED AUGUST 20, 1998
Prospectus dated December 15, 1997
The following disclosure should be inserted after the section "Rule 144A
Securities" found on page 9 of the Prospectus.
CASH MANAGEMENT
The fund 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.
The following disclosure is added on page 12 of the Prospectus, following the
last paragraph under the heading "When Share Price is Determined."
We have contractual relationships with certain financial intermediaries in
which such intermediaries represent that they have systems to track the time at
which investment orders are received and to segregate orders received at
different times. Based on these representations, the fund has authorized such
intermediaries and their designees to accept purchase and redemption orders on
the fund's behalf up to the applicable cut-off time. The fund will be deemed to
have received such orders upon acceptance by the duly authorized intermediary,
and such orders will be priced at the fund's net asset value next determined
after acceptance on the fund's behalf by such intermediary.
The following disclosure is added following the last paragraph under the heading
"Transfer and Administrative Services" on page 16 of the Prospectus.
Pursuant to a Sub-Administration Agreement with the manager, Funds
Distributor, Inc. (FDI) serves as the Co-Administrator for the fund. FDI is
responsible for (i) providing certain officers of the fund and (ii) reviewing
and filing marketing and sales literature on behalf of the fund. The fees and
expenses of FDI are paid by the manager out of its unified fee.
YEAR 2000 ISSUES
Many of the world's computer systems currently cannot properly recognize or
process date-sensitive information relating to the Year 2000 and beyond. Because
this may impact the computer systems of various American Century-affiliated and
external service providers for the funds, American Century formally initiated a
Year 2000 readiness project in July 1997. It involves a team of information
technology professionals assisted by outside consultants and guided by a
senior-level steering committee. The team's goal is to assess the impact of the
Year 2000 on American Century's systems, renovate or replace noncompliant
critical systems and test those systems. In addition, the team has been working
to gather information about the Year 2000 efforts of the funds' other major
service providers. Although American Century believes its critical systems will
function properly in the Year 2000, this is not guaranteed. If the efforts of
American Century or its external service providers are not successful, the
funds' business, particularly its ability to provide shareholder services, may
be hampered.
In addition, the issuers of securities the funds own could have Year 2000
computer problems. These problems could negatively affect the value of their
securities, which, in turn, could impact the funds' performance. The manager has
established a process to gather publicly available information about the Year
2000 readiness of these issuers. However, this process may not uncover all
relevant information, and the information gathered may not be complete and
accurate. Moreover, an issuer's Year 2000 readiness is only one of many factors
the manager may consider when making investment decisions, and other factors may
receive greater weight.
The following disclosure replaces the first sentence under the heading
"Distribution of Fund Shares" on page 17 of the Prospectus.
The fund's shares are distributed by FDI, a registered broker-dealer. FDI
is a wholly-owned indirect subsidiary of Boston Institutional Group, Inc. FDI's
principal business address is 60 State Street, Suite 1300, Boston, Massachusetts
02109.
The following disclosure should be inserted as the last paragraph under the
heading "Distribution of Fund Shares" on page 17 of the Prospectus.
Investors may open accounts with American Century only through the
distributor. All purchase transactions in the fund offered by this Prospectus
are processed by the transfer agent, which is authorized to accept any
instructions relating to fund accounts. All purchase orders must be accepted by
the distributor. All fees and expenses of FDI in acting as distributor for the
funds are paid by the manager.
[american century logo(reg.sm)]
American
Century(reg.tm)
P.O. Box 419146
Kansas City, Missouri
64141-6146
1-888-345-2071 or 816-531-5575
BK-SPL-13721 9808
