SEMIANNUAL
REPORT
[american century logo]
American
Century(reg.sm)
NOVEMBER 30, 1997
BENHAM
GROUP
Limited-Term Tax-Free
Intermediate-Term Tax-Free
Long-Term Tax-Free
TABLE OF CONTENTS
Limited-Term Tax-Free
Schedule of Investments ...................................... 1
Financial Highlights ......................................... 17
Intermediate-Term Tax-Free
Schedule of Investments ...................................... 3
Financial Highlights ......................................... 18
Long-Term Tax-Free
Schedule of Investments ...................................... 7
Financial Highlights ......................................... 19
Statements of Assets and Liabilities .................................... 11
Statements of Operations ................................................ 12
Statements of Changes in Net Assets ..................................... 13
Notes to Financial Statements ........................................... 14
American Century Investments offers you nearly 70 fund choices covering
stocks, bonds, money markets, specialty investments and blended portfolios.
We've organized our funds into three distinct groups, based on investment style
and objectives, to help simplify your fund decisions. These groups appear below.
AMERICAN CENTURY INVESTMENTS--FAMILY OF FUNDS
- -------------------------------------------------------------------------------
Benham American Century Twentieth Century(reg. tm)
Group(reg. tm) Group Group
- -------------------------------------------------------------------------------
MONEY MARKET FUNDS ASSET ALLOCATION & GROWTH FUNDS
GOVERNMENT BOND FUNDS BALANCED FUNDS INTERNATIONAL FUNDS
DIVERSIFIED BOND FUNDS CONSERVATIVE EQUITY FUNDS
MUNICIPAL BOND FUNDS SPECIALTY FUNDS
- -------------------------------------------------------------------------------
Limited-Term Tax-Free
Intermediate-Term Tax-Free
Long-Term Tax-Free
We welcome your comments or questions about this report.
See the back cover for ways to contact us by mail, phone or e-mail.
Twentieth Century and American Century are registered marks of American Century
Services Corporation. Benham Group is a registered mark of Benham Management
Corporation.
AMERICAN CENTURY INVESTMENTS
SCHEDULE OF INVESTMENTS
LIMITED-TERM TAX-FREE
NOVEMBER 30, 1997 (UNAUDITED)
Principal Amount ($ in Thousands) Value
- --------------------------------------------------------------------------------
MUNICIPAL SECURITIES
ARIZONA -- 6.4%
$1,500 Arizona Transportation Board
Excise Tax Rev., (Maricopa
County), 5.60%, 7/1/02
(AMBAC) $ 1,587
750 Maricopa County Certificates of
Participation, 5.625%, 6/1/00 768
-----------
2,355
-----------
CALIFORNIA -- 5.5%
1,000 Long Beach Harbor Rev., Series
1998 A, 5.00%, 5/15/00(1) 1,015
1,000 Morgan Hill Redevelopment
Agency Tax Allocation, (Ojo De
Agua Community Development
Project), 5.50%, 3/1/99 1,014
-----------
2,029
-----------
COLORADO -- 5.8%
1,000 Denver Colorado City & County
Airport Rev., Series 1996 B,
5.25%, 11/15/02 (MBIA) 1,039
1,000 Highlands Ranch Metropolitan
District #2 GO, 6.00%,
6/15/02 (FSA) 1,074
-----------
2,113
-----------
FLORIDA -- 7.7%
1,550 Jacksonville Electric Auth. Rev.,
(St. John's River), 6.00%,
10/1/04 1,700
1,100 Polk County Utility System Rev.,
Series 1997 B, 4.00%,
10/1/98 (FGIC) 1,102
-----------
2,802
-----------
HAWAII -- 2.8%
1,000 Hawaii GO, Series 1997 CP,
5.00%, 10/1/00 (FGIC) 1,023
-----------
ILLINOIS -- 2.8%
1,015 Cook County GO, Series 1992 A,
5.75%, 11/15/99 (MBIA) 1,048
-----------
Principal Amount/Shares ($ in Thousands) Value
- --------------------------------------------------------------------------------
INDIANA -- 2.8%
$1,000 Central High School Building Corp.
Rev., 5.25%, 2/1/04 (AMBAC) $ 1,040
-----------
MICHIGAN -- 6.6%
385 Detroit Michigan GO, Series 1995 B,
5.10%, 4/1/99 389
1,000 Michigan Building Auth. Rev.,
Series 1997 I, 5.00%, 10/1/00 1,024
1,000 Michigan Comprehensive
Transportation Rev., Series 1992 B,
5.10%, 5/15/99 1,016
-----------
2,429
-----------
MISSISSIPPI -- 2.7%
1,000 Mississippi Lease Rev. Certificates
of Participation, Series 1997 A,
4.60%, 4/15/99 (AMBAC) 1,002
-----------
MISSOURI -- 10.2%
1,000 Kansas City Port Auth. Facilities
Rev., Series 1995 A, (Riverfront
Park Project), 5.75%, 10/1/98 1,014
1,675 North Kansas City School
District GO, 5.00%, 3/1/00 1,708
1,000 Springfield State Highway
Improvement Corp. Rev., 5.05%,
8/1/03 (AMBAC) 1,033
-----------
3,755
-----------
NEW JERSEY -- 5.0%
1,750 West Windsor Plainsboro GO,
5.25%, 12/1/02 (FGIC)(2) 1,831
-----------
NEW YORK -- 17.3%
1,000 New York City GO, 6.25%, 8/1/03 1,079
2,145 New York City Municipal Assistance
Corp. Rev., Series 1997 I, 5.25%,
7/1/02 2,234
2,000 New York State Certificates of
Participation, 4.40%, 8/1/98 2,007
1,000 New York State Serial Bonds GO,
6.70%, 11/15/99 1,050
-----------
6,370
-----------
See Notes to Financial Statements
SEMIANNUAL REPORT LIMITED-TERM TAX-FREE 1
SCHEDULE OF INVESTMENTS
LIMITED-TERM TAX-FREE
NOVEMBER 30, 1997 (UNAUDITED)
Principal Amount/Shares ($ in Thousands) Value
- --------------------------------------------------------------------------------
OHIO -- 10.0%
$2,070 Ohio Building Auth. Rev.,
Series 1997 A, (Highway Safety
Building), 5.00%, 10/1/03
(AMBAC) $ 2,142
1,500 Ohio Water Development
Auth. Pollution Control Facilities
Rev., 5.00%, 6/1/04 (MBIA) 1,551
-----------
3,693
-----------
PENNSYLVANIA -- 5.5%
2,000 Philadelphia Gas Works Rev.,
14th Series, 5.40%, 7/1/98 2,017
-----------
SOUTH CAROLINA -- 2.5%
855 Piedmont Municipal Power Agency
Rev., Series 1991 A, 6.00%,
1/1/02 (FGIC) 908
-----------
TEXAS -- 5.0%
1,000 Colorado River Municipal Water
District Rev., Series 1991 A,
8.50%, 1/1/01, Prerefunded at
100% of Par (AMBAC)(3) 1,123
685 Denison Hospital Auth. Rev.,
(Texoma Medical Center), 5.00%,
8/15/00 696
-----------
1,819
-----------
TOTAL MUNICIPAL SECURITIES -- 98.6% 36,234
-----------
(Cost $35,692)
TEMPORARY CASH INVESTMENTS -- 1.4%
504,000 Units of Participation in Chase
Vista Tax-Free Money Market
Fund (Institutional Shares) 504
-----------
(Cost $504)
TOTAL INVESTMENT SECURITIES -- 100.0% $36,738
===========
(Cost $36,196)
NOTES TO SCHEDULE OF INVESTMENTS
AMBAC = AMBAC Indemnity Corporation
FGIC = Financial Guaranty Insurance Co.
FSA = Financial Security Assurance
GO = General Obligation
MBIA = MBIA Bond Insurance Corp.
(1) When-issued security.
(2) Denotes security which has been segregated at the custodian bank for the
when-issued security.
(3) Escrowed to maturity in U.S. Government Securities.
See Notes to Financial Statements
2 LIMITED-TERM TAX-FREE AMERICAN CENTURY INVESTMENTS
SCHEDULE OF INVESTMENTS
INTERMEDIATE-TERM TAX-FREE
NOVEMBER 30, 1997 (UNAUDITED)
Principal Amount ($ in Thousands) Value
- --------------------------------------------------------------------------------
MUNICIPAL SECURITIES
ALASKA -- 0.4%
$ 500 Anchorage Hospital Rev., (Sisters
of Providence), 6.50%, 10/1/99 $ 520
-----------
ARIZONA -- 0.6%
750 Maricopa County Certificates of
Participation, 5.625%, 6/1/00 768
-----------
ARKANSAS -- 1.0%
1,310 West Memphis Public Utility
System Rev., Series 1996 A,
5.25%, 12/1/00 (MBIA) 1,354
-----------
CALIFORNIA -- 6.3%
2,105 California Housing Finance
Agency Rev., 5.60%, 8/1/09
(MBIA) 2,213
1,100 California Public Works Board
Lease Rev., Series 1994 A,
(Various Universities), 6.15%,
11/1/09 1,200
1,000 California Public Works Board
Lease Rev., Series 1997 C,
(Various Universities), 5.00%,
9/1/15 (AMBAC) 984
1,700 Los Angeles County Public Works
Financing Auth. Lease Rev.,
Series 1997 A, 4.70%, 3/1/06
(FSA) 1,722
1,100 Sacramento Regional
Transportation Certificates of
Participation, Series 1992 A,
6.20%, 3/1/00 1,148
1,000 San Francisco City and County GO,
Series 1, 5.00%, 6/15/16 (FGIC) 981
-----------
8,248
-----------
COLORADO -- 0.8%
1,000 Denver Sales Tax Rev., Series
1991 A, (Major League Baseball
Stadium District), 6.10%,
10/1/01 (FGIC) 1,070
-----------
Principal Amount ($ in Thousands) Value
- --------------------------------------------------------------------------------
DISTRICT OF COLUMBIA -- 0.8%
$1,000 District of Columbia Hospital Rev.,
Series 1993 A, (Medlantic
Health Care Group), 5.25%,
8/15/02 (MBIA) $ 1,038
-----------
FLORIDA -- 2.9%
700 Broward County School District GO,
6.75%, 2/15/00 735
1,010 Dade County Water and Sewer
System Rev., 5.125%, 10/1/09
(FGIC) 1,038
1,775 Lakeland Electric and Water Rev.
Refunding, Series 1996 B,
6.00%, 10/1/09 (FGIC) 1,986
-----------
3,759
-----------
GEORGIA -- 4.6%
1,000 Atlanta Airport Facilities Rev.,
7.00%, 1/1/01 1,078
1,000 Atlanta Water and Sewer Rev.,
(Second Lien), 6.00%, 1/1/05
(FGIC) 1,093
2,495 Fulton County Water and Sewer
Rev. Refunding, 6.25%, 1/1/09
(FGIC) 2,817
1,000 Metropolitan Atlanta Rapid Transit
Auth. Sales Tax Rev.,
Series 1991 M, 6.05%, 7/1/01 1,061
-----------
6,049
-----------
HAWAII -- 0.8%
1,000 Hawaii GO, Series 1990 A,
7.00%, 6/1/00 (FGIC)(1) 1,068
-----------
ILLINOIS -- 1.8%
2,250 Illinois GO, 6.00%, 10/1/01 2,393
30 Metropolitan Pier and Exposition
Auth. Rev., (McCormick Place
Project), 5.20%, 6/15/99(1) 31
-----------
2,424
-----------
INDIANA -- 1.5%
1,000 Central High School Building Rev.,
4.625%, 2/1/05 (AMBAC) 1,003
1,000 South Montgomery Industrial
Building Improvement
Certificates of Participation,
7.20%, 1/1/98 (AMBAC)(2) 994
-----------
1,997
-----------
See Notes to Financial Statements
SEMIANNUAL REPORT INTERMEDIATE-TERM TAX-FREE 3
SCHEDULE OF INVESTMENTS
INTERMEDIATE-TERM TAX-FREE
NOVEMBER 30, 1997 (UNAUDITED)
Principal Amount ($ in Thousands) Value
- --------------------------------------------------------------------------------
MASSACHUSETTS -- 7.1%
$2,605 Massachusetts Bay Transportation
Auth. Rev., Series 1992 C,
5.40%, 3/1/00 $ 2,675
2,000 Massachusetts Housing Finance
Agency Rev., Series 1994 A,
5.90%, 1/1/03 (AMBAC) 2,083
1,000 Massachusetts GO, Series 1996 D,
(Consolidated Loan), 5.00%,
11/1/16 (AMBAC) 977
1,000 Massachusetts GO, Series 1997 A,
5.00%, 8/1/04 (FGIC) 1,036
1,500 Massachusetts GO, Series 1997 A,
(Consolidated Loan), 5.00%,
3/1/06 (AMBAC) 1,550
1,000 Worcester GO, 5.50%, 8/1/04
(MBIA) 1,063
-----------
9,384
-----------
MICHIGAN -- 1.2%
1,500 Detroit Water Supply System Rev.,
Series 1995 A, 5.30%, 7/1/09
(MBIA) 1,566
-----------
MISSISSIPPI -- 1.6%
2,000 Mississippi Hospital Equipment and
Facilities Auth. Rev., (North
Mississippi Health Service),
5.00%, 5/15/00 (AMBAC) 2,037
-----------
MISSOURI -- 0.8%
1,000 Missouri Board of Public Buildings
State Office Buildings Special
Obligation Rev., 6.30%, 12/1/05 1,071
-----------
NEW JERSEY -- 2.8%
1,030 Atlantic City Board of Education
GO, 6.00%, 12/1/06 (AMBAC) 1,126
1,410 New Jersey Educational Facility
Auth. Rev., Series 1994 A, (New
Jersey Institute of Technology),
5.90%, 7/1/08 (MBIA) 1,527
1,000 New Jersey Health Care Facilities
Financing Auth. Rev., (Atlantic
City Medical Center), 6.15%,
7/1/99 1,030
-----------
3,683
-----------
Principal Amount ($ in Thousands) Value
- --------------------------------------------------------------------------------
NEW YORK -- 13.8%
$1,950 City University of New York
Certificates of Participation, (John
Jay College), 5.00%, 8/15/09
(AMBAC) $ 1,968
2,500 Nassau County GO, Series 1996 T,
5.20%, 9/1/05 (FGIC) 2,613
1,000 New York State Dormitory Auth.
Rev., (City University System),
6.00%, 7/1/03 1,069
1,500 New York State Dormitory Auth.
Rev., Series 1995 A, (State
University Educational Facilities),
6.50%, 5/15/04 1,665
1,000 New York State Dormitory Auth.
Rev., Series 1995 A, (State
University Educational Facilities),
6.50%, 5/15/06 1,125
1,000 New York State Dormitory Auth.
Rev., Series 1996 E, (Mental
Health Service Facility), 6.00%,
8/15/04 (AMBAC) 1,087
1,000 New York State Dormitory Auth.
Rev., Series 1997 A, (Mental
Health Service Facility), 5.30%,
2/15/04 1,038
1,000 New York State GO, Series 1997 D,
5.25%, 8/1/06 (FGIC) 1,045
1,005 New York State Medical Care
Facilities Finance Agency Rev.,
(Hospital and Nursing Home),
5.95%, 8/15/09 (FHA) 1,053
1,000 New York State Thruway Auth.
Service Contract Rev., 5.30%,
4/1/04 1,033
1,000 New York State Thruway Auth.
Service Contract Rev., 5.50%,
4/1/04 1,044
1,160 New York State Thruway Auth.
Service Contract Rev., 5.50%,
4/1/06 1,210
1,000 New York State Urban
Development Corp. Rev.,
Series 1996 A, 6.25%, 4/1/05
(MBIA) 1,108
1,000 Niagara Falls Bridge Commission
Toll Rev., Series 1993 B, 5.25%
10/1/15 (FGIC) 1,025
-----------
18,083
-----------
See Notes to Financial Statements
4 INTERMEDIATE-TERM TAX-FREE AMERICAN CENTURY INVESTMENTS
SCHEDULE OF INVESTMENTS
INTERMEDIATE-TERM TAX-FREE
NOVEMBER 30, 1997 (UNAUDITED)
Principal Amount ($ in Thousands) Value
- --------------------------------------------------------------------------------
NORTH CAROLINA -- 1.7%
$2,000 North Carolina Eastern Municipal
Power Agency System Rev.,
Series 1993 B, 6.00%, 1/1/06
(FSA) $ 2,189
-----------
OHIO -- 3.8%
1,200 Ohio Higher Educational Facility
Commission Rev., (University of
Dayton), 5.55%, 12/1/07
(FGIC) 1,281
3,320 Ohio Water Development Auth.
Pollution Control Facilities Rev.,
6.00%, 12/1/05 (MBIA) 3,663
-----------
4,944
-----------
OKLAHOMA -- 2.2%
2,500 Oklahoma Industrial Auth. Health
System Rev. Refunding,
Series 1995 C, 7.00%,
8/15/04 (AMBAC) 2,851
-----------
OREGON -- 1.5%
1,805 Lane County School District
No. 19 GO, (Springfield), 6.375%,
10/15/05 (MBIA) 2,024
-----------
PENNSYLVANIA -- 6.6%
1,500 Pennsylvania Turnpike Commission
Rev., Series 1991 L, 6.25%,
6/1/01 (AMBAC) 1,601
2,000 Philadelphia Gas Works Rev.,
14th Series, 5.70%, 7/1/00 (FSA) 2,076
1,000 Philadelphia Parking Auth. Rev.,
5.50%, 9/1/04 (AMBAC) 1,061
2,000 Philadelphia Water and Wastewater
Rev., 5.15%, 6/15/04 (FGIC) 2,057
1,845 Philadelphia Water and Wastewater
Rev., 5.00%, 6/15/12 (FGIC) 1,834
-----------
8,629
-----------
TEXAS -- 14.1%
1,000 Austin Utility System Rev., 5.125%,
11/15/16 (FSA) 994
2,000 Brazos Higher Education Auth. Rev.,
Series A-1, 5.50%, 12/1/98 2,028
1,875 Brownsville Utility System Rev.,
6.00%, 9/1/08 (AMBAC) 2,081
Principal Amount ($ in Thousands) Value
- --------------------------------------------------------------------------------
$1,000 Dallas-Fort Worth Regional Airport
Rev., Series 1994 A, 5.90%,
11/1/08 (MBIA) $ 1,067
1,000 Denison Hospital Auth. Rev.,
(Texoma Medical Center), 5.90%,
8/15/07 1,058
1,500 Harris County Health Facilities
Development Corp. Hospital Rev.,
(Memorial Hospital System
Project), 6.80%, 6/1/01(1) 1,623
1,000 Houston Airport System Rev.,
5.125%, 7/1/16 (FGIC) 990
500 North Texas Higher Education
Student Loan Rev., 6.875%,
4/1/02 (AMBAC) 533
1,000 Tarrant County Health Facility
Development Corporation Health
System Rev., (Harris Methodist
Health System), 5.00%, 9/1/07
(AMBAC)(1) 1,032
2,000 Texas Municipal Power Agency Rev.,
5.75%, 9/1/02 (MBIA) 2,128
1,000 Texas Municipal Power Agency Rev.,
5.25%, 9/1/09 (MBIA) 1,048
1,000 Texas GO, Series 1995 A,
6.50%, 10/1/03 1,113
1,500 Texas Public Finance Auth.
Building Rev., (Technical College),
6.25%, 8/1/09 (MBIA) 1,706
1,000 Texas Turnpike Auth. Rev.,
Series 1990 A, 7.00%, 1/1/99,
Prerefunded at 102% of Par
(AMBAC)(1) 1,052
-----------
18,453
-----------
UTAH -- 2.7%
1,000 Salt Lake County Municipal
Building Auth. Lease Rev.,
Series 1994 A, 6.00%, 10/1/07
(MBIA) 1,084
1,295 Utah Housing Finance Agency
Single Family Mortgage Rev.,
5.65%, 7/1/06 1,353
1,000 Utah Municipal Finance Co-op
Local Government Rev.,
(University of Utah/University
Hospital Project), 6.60%,
5/15/00 1,056
-----------
3,493
-----------
See Notes to Financial Statements
SEMIANNUAL REPORT INTERMEDIATE-TERM TAX-FREE 5
SCHEDULE OF INVESTMENTS
INTERMEDIATE-TERM TAX-FREE
NOVEMBER 30, 1997 (UNAUDITED)
Principal Amount ($ in Thousands) Value
- --------------------------------------------------------------------------------
VIRGINIA -- 1.1%
$1,275 Metropolitan Washington D.C.
Airports Auth. Rev.,
Series 1992 A, 6.30%,
10/1/03 (MBIA) $ 1,396
-----------
WASHINGTON -- 13.7%
1,000 Pierce County School District No. 3
GO, Series 1992 B, 5.80%,
12/1/99 1,033
1,000 Pierce County School District
No. 320 GO, 5.75%, 12/1/02 1,060
2,435 Port Seattle Rev., Series 1997 B,
5.10%, 10/1/03 (FGIC) 2,511
1,385 Port Tacoma Rev., 4.70%,
12/1/04 (AMBAC) 1,395
2,000 Snohomish County Public Utility
District Rev., 5.625%, 1/1/05
(FGIC) 2,130
1,000 Snohomish County School District
No. 15 GO, 6.125%, 12/1/03 1,059
1,000 Spokane County School District
No. 356 GO, 6.00%, 12/1/06
(FGIC) 1,105
1,730 Tacoma Electric System Rev.,
6.00%, 1/1/07 (FGIC) 1,901
1,000 Tacoma Electric System Rev.,
6.10%, 1/1/07 (FGIC) 1,090
1,000 Washington Public Power Supply
System Rev., Series 1990 B,
(Nuclear Project No. 1), 7.10%,
7/1/01 (FGIC) 1,086
1,000 Washington Public Power Supply
Rev., Series 1990 C, (Nuclear
Project No. 2), 7.30%, 7/1/00 1,074
500 Washington Public Power Supply
System Rev., Series 1990 C,
(Nuclear Project No. 2), 7.00%,
7/1/01 (FGIC) 545
1,000 Washington Public Power Supply
System Rev., Series 1993 A,
(Nuclear Project No. 1), 5.50%,
7/1/04 1,052
1,000 Washington Public Power Supply
System Rev., Series 1997 B,
(Nuclear Project No. 1), 5.125%,
7/1/17 979
-----------
18,020
-----------
Principal Amount ($ in Thousands) Value
- --------------------------------------------------------------------------------
WEST VIRGINIA -- 0.8%
$1,090 West Virginia GO, Series 1996 D,
5.00%, 11/1/10 (FGIC) $ 1,096
-----------
WISCONSIN -- 3.0%
2,590 Wisconsin Health and
Educational Facility Rev.,
(Aurora Medical Group), 6.00%,
11/15/10 (FSA) 2,882
1,060 Wisconsin Health and Educational
Facility Rev., Series 1991 B,
(Wausau Hospital), 6.30%,
8/15/00 (AMBAC) 1,117
-----------
3,999
-----------
TOTAL INVESTMENT SECURITIES -- 100.0% $131,213
===========
(Cost $125,758)
NOTES TO SCHEDULE OF INVESTMENTS
AMBAC = AMBAC Indemnity Corporation
FGIC = Financial Guaranty Insurance Company
FHA = Federal Housing Authority
FSA = Financial Security Assurance
GO = General Obligation
MBIA = MBIA Insurance Corp.
(1) Escrowed to maturity in U.S. Government Securities.
(2) Security is a zero-coupon municipal bond. The yield to maturity at
purchase is shown instead of a stated coupon rate. Zero-coupon securities
are purchased at a substantial discount from their value at maturity.
See Notes to Financial Statements
6 INTERMEDIATE-TERM TAX-FREE AMERICAN CENTURY INVESTMENTS
SCHEDULE OF INVESTMENTS
LONG-TERM TAX-FREE
NOVEMBER 30, 1997 (UNAUDITED)
Principal Amount ($ in Thousands) Value
- --------------------------------------------------------------------------------
MUNICIPAL SECURITIES
ALASKA(1)
$ 25 Alaska Housing Finance Corp
Rev., Series 1987 B, 8.75%,
12/1/16 (LOC: Swiss Bank) $ 26
-----------
ARIZONA -- 3.6%
4,000 Salt River Project Agriculture Rev.,
Series 1997 A, 5.00%, 1/1/20 3,890
-----------
CALIFORNIA -- 10.9%
1,000 Anaheim Public Financing Auth.
Lease Rev. Certificates of
Participation, Series 1997 C,
(Public Improvement Projects),
6.00%, 9/1/16 (FSA) 1,112
1,000 California Public Works Lease Rev.,
Series 1994 A, (University Project),
6.20%, 10/1/08 1,097
1,225 Long Beach Water Rev., 6.125%,
5/1/19 1,366
1,500 Los Angeles Community
Redevelopment Agency Rev.,
(Bunker Hill), 6.50%, 12/1/14
(FSA) 1,669
1,500 Metropolitan Water District Rev.,
Series 1993 A, (Southern
California), 5.75%, 7/1/21 1,629
2,000 Metropolitan Water District Rev.,
Series 1997 A, (Southern
California), 5.00%, 7/1/26 1,932
1,850 Northern California Power Agency
Rev., Series 1992 A,
(Hydroelectric Project #1), 6.25%,
7/1/12 (MBIA) 2,013
1,000 San Jose Redevelopment Agency
Tax Allocation, Series 1993 D,
5.75%, 8/1/24 1,023
-----------
11,841
-----------
COLORADO -- 0.3%
300 Colorado Housing Finance Auth.
Rev., Series 1987 C, (Single
Family Residential), 8.70%,
9/1/07 308
-----------
Principal Amount ($ in Thousands) Value
- --------------------------------------------------------------------------------
CONNECTICUT -- 2.9%
$1,000 Connecticut GO, Series 1993 E,
6.00%, 3/15/12 $ 1,109
1,880 Connecticut Development
Auth. Rev., Series 1994 A,
6.375%, 10/15/24 2,067
-----------
3,176
-----------
DISTRICT OF COLUMBIA -- 1.0%
1,000 District of Columbia Metropolitan
Area Transportation Auth. Rev.,
6.00%, 7/1/10 (FGIC) 1,108
-----------
FLORIDA -- 4.4%
855 Broward County Resource
Recovery Facility Rev., (South
Project), 7.95%, 12/1/08 932
1,000 Orlando Water and Electric Auth.
Rev., Series 1989 D, 6.75%,
10/1/17 1,204
1,000 St. Petersburg Health Auth. Rev.,
(Allegany Health), 7.00%,
12/1/15 (MBIA) 1,106
1,350 Tampa Sports Auth. Sales Tax Rev.,
(Tampa Bay Arena Project),
5.75%, 10/1/25 (MBIA) 1,471
-----------
4,713
-----------
GEORGIA -- 1.1%
1,000 Georgia Municipal Electric Auth.
Rev., 6.50%, 1/1/12 (MBIA) 1,150
-----------
ILLINOIS -- 15.1%
1,000 Chicago Gas Supply Rev.,
Series 1985 B, (Peoples Gas),
7.50%, 3/1/15 1,082
1,965 Chicago Metropolitan Water
Reclamation District Capital
Improvement GO, 6.25%,
12/1/14 2,200
1,000 Cook County GO, 7.00%,
11/1/00, Prerefunded at 102%
of Par (MBIA)(2) 1,097
2,000 Illinois Dedicated Tax Rev., (Civic
Center Project), 6.25%,
12/15/20 (AMBAC) 2,268
See Notes to Financial Statements
SEMIANNUAL REPORT LONG-TERM TAX-FREE 7
SCHEDULE OF INVESTMENTS
LONG-TERM TAX-FREE
NOVEMBER 30, 1997 (UNAUDITED)
Principal Amount ($ in Thousands) Value
- --------------------------------------------------------------------------------
$1,500 Illinois Development Finance Auth.
Pollution Control Rev.,
Series 1990 A, (Central Illinois
Public Service), 7.60%, 3/1/14 $ 1,615
1,000 Illinois Development Finance Auth.
Waste Disposal Rev., (Armstrong
World Industries Project), 5.95%,
12/1/24 1,057
1,500 Illinois GO, 6.25%, 10/1/06 1,632
700 Illinois Health Facilities Auth. Rev.,
Series 1992 C, (Evangelical
Hospital), 6.75%, 4/15/02,
Prerefunded at 102% of Par(2) 778
1,140 Illinois Health Facilities Auth. Rev.
Refunding, Series 1992 C,
(Evangelical Hospital), 6.75%,
4/15/12(2) 1,323
1,000 Illinois Regional Transportation
Auth. Rev., Series 1990 A,
7.20%, 11/1/20 (AMBAC) 1,263
2,000 Springfield Water Rev., 6.50%,
3/1/15 2,099
-----------
16,414
-----------
INDIANA -- 2.2%
1,000 Indiana Municipal Power Agency Rev.,
Series 1990 A, 7.10%, 1/1/00,
Prerefunded at 102%
of Par (AMBAC)(2) 1,079
1,000 Indiana Transportation Financing
Auth. Highway Rev.,
Series 1990 A, 7.25%, 6/1/15 1,240
-----------
2,319
-----------
KANSAS -- 1.0%
1,000 Kansas City Utility System Rev.,
6.375%, 9/1/23 (FGIC) 1,108
-----------
KENTUCKY -- 1.3%
1,000 Carroll County Pollution Control
Rev., Series 1992 A, (Kentucky
Utilities Company Project),
7.45%, 9/15/16 1,134
220 Kentucky Housing Corp. Rev.,
Series 1988 C, 7.90%, 1/1/21
(FHA) 233
-----------
1,367
-----------
Principal Amount ($ in Thousands) Value
- --------------------------------------------------------------------------------
MASSACHUSETTS -- 3.8%
$1,000 Massachusetts Health and
Education Auth. Rev.,
Series 1992 F, 6.25%, 7/1/12
(AMBAC) $ 1,114
1,690 Massachusetts Housing Finance
Agency Rev., Series 1993 H,
6.75%, 11/15/12 (FNMA) 1,822
1,115 Massachusetts Housing Finance
Agency Rev., Series 1993 A,
6.375%, 4/1/21 1,175
-----------
4,111
-----------
MICHIGAN -- 5.8%
3,500 Detroit Sewer Disposal Rev.,
Series 1997 A, 5.00%,
7/1/22 (MBIA) 3,366
3,000 Detroit Sewer Disposal Rev.,
Series 1997 A, 5.00%,
7/1/27 (MBIA) 2,875
-----------
6,241
-----------
NEW YORK -- 6.8%
1,250 Metropolitan Transportation Auth.
Rev., Series 1997 B-2, 5.00%,
7/1/20 (MBIA) 1,209
1,000 Municipal Assistance Corp. Rev.,
Series 67, 7.625%, 7/1/99,
Prerefunded at 102% of Par(2) 1,074
1,000 New York Local Government
Assistance Corp. Rev.,
Series 1991 D, 6.75%, 4/1/07 1,116
1,000 New York State Environmental
Facilities Corp. Pollution Control
Rev., Series 1991 E, 6.30%,
6/15/02 1,084
3,000 New York State Urban
Development Corp. Rev.,
Series 4, (Correctional Facilities),
5.375%, 1/1/23 2,917
-----------
7,400
-----------
NORTH CAROLINA -- 1.0%
1,000 North Carolina Municipal Power
Agency #1 Rev., (Catawba
Electric), 6.00%, 1/1/10 (MBIA) 1,102
-----------
See Notes to Financial Statements
8 LONG-TERM TAX-FREE AMERICAN CENTURY INVESTMENTS
SCHEDULE OF INVESTMENTS
LONG-TERM TAX-FREE
NOVEMBER 30, 1997 (UNAUDITED)
Principal Amount ($ in Thousands) Value
- --------------------------------------------------------------------------------
OHIO -- 0.8%
$ 750 Ohio Higher Educational
Facility Rev., Series 1990 B,
(Case Western Reserve
University), 6.50%, 10/1/20 $ 884
-----------
PENNSYLVANIA -- 4.0%
2,500 Allegheny County Airport Rev.,
Series 1997 B, (Pittsburgh
International Airport), 5.00%,
1/1/19 (MBIA) 2,418
2,000 Philadelphia Water and Wastewater
Rev., Series
1997 A, 5.00%,
8/1/22 (AMBAC) 1,926
-----------
4,344
-----------
PUERTO RICO -- 0.5%
500 Puerto Rico Commonwealth GO,
6.45%, 7/1/17 554
-----------
RHODE ISLAND -- 4.5%
1,100 Rhode Island Clean Water Safe
Drinking Rev., 6.70%, 1/1/15
(AMBAC) 1,236
2,000 Rhode Island Depositors Economic
Protection Corp. Special
Obligation Rev., Series 1993 A,
6.25%, 8/1/16 (MBIA) 2,248
1,300 Rhode Island Depositors Economic
Protection Corp. Special
Obligation Rev., Series 1993 B,
6.00%, 8/1/17 (MBIA) 1,373
-----------
4,857
-----------
SOUTH CAROLINA -- 2.8%
1,500 Piedmont Municipal Power Agency
Electric Rev., 6.75%, 1/1/19
(FGIC) 1,803
860 Piedmont Municipal Power Agency
Electric Rev. Refunding,
Series 1991 A, 6.50%,
1/1/16 (FGIC) 1,002
140 Piedmont Municipal Power Agency
Electric Rev. Refunding,
Series 1991 A, 6.50%, 1/1/16
(FGIC)(2) 163
-----------
2,968
-----------
Principal Amount ($ in Thousands) Value
- --------------------------------------------------------------------------------
TEXAS -- 7.6%
$1,000 Alliance Airport Auth. Special
Facilities Rev., (American Airlines
Project), 7.00%, 12/1/11 $ 1,166
1,000 Denison Hospital Auth. Rev.,
(Texoma Medical Center Income
Project), 6.125%, 8/15/12 1,050
1,000 Denton Utility System Rev., Series 1996 A,
5.95%, 12/1/14
(MBIA) 1,061
2,000 San Antonio Electric and Gas
System Rev., 7.10%, 2/1/09
(FGIC)(3) 1,147
1,000 Tarrant County Health Facility Rev.,
6.00%, 5/15/11 (MBIA) 1,113
2,500 Texas Municipal Power Agency Rev.,
Series 1991 A, 6.75%, 9/1/12
(AMBAC) 2,736
-----------
8,273
-----------
UTAH -- 1.2%
1,000 Salt Lake City Hospital Rev.
Refunding, Series 1988 A,
(Intermountain Health
Corporation), 8.125%,
5/15/15(2) 1,285
-----------
VIRGINIA -- 2.7%
1,000 Hampton Industrial Development
Auth. Rev., Series 1994 A,
(Sentara General Hospital),
6.50%, 11/1/12 1,107
1,750 Virginia Housing Development
Auth. Rev., Series 1992 A,
(Single Family Mortgage),
7.10%, 1/1/17 1,854
-----------
2,961
-----------
WASHINGTON -- 8.7%
1,405 Port of Seattle Rev., 7.50%,
12/1/00, Prefunded at 102% of
Par (AMBAC)(2) 1,563
1,625 Seattle Metropolitan Sewer Rev.,
Series 1991 T, 6.875%, 1/1/00,
Prerefunded at 102% of Par(2) 1,744
See Notes to Financial Statements
SEMIANNUAL REPORT LONG-TERM TAX-FREE 9
SCHEDULE OF INVESTMENTS
LONG-TERM TAX-FREE
NOVEMBER 30, 1997 (UNAUDITED)
Principal Amount/Shares ($ in Thousands) Value
- --------------------------------------------------------------------------------
$1,000 Washington GO, Series 1990 A,
6.75%, 2/1/15 $ 1,192
1,000 Washington Public Power Supply
Rev., Series 1996 A,
(Nuclear Project #1), 5.75%,
7/1/12 (MBIA) 1,048
4,000 Washington State Public Power
Supply Rev., Series 1997 B,
(Nuclear Project #1), 5.125%,
7/1/17 3,915
-----------
9,462
-----------
WISCONSIN -- 3.3%
1,180 Winneconne Community School
District GO, 6.75%, 4/1/14
(FGIC) 1,325
1,900 Wisconsin Clean Water Rev.,
6.875%, 6/1/11 2,270
-----------
3,595
-----------
WYOMING -- 0.2%
190 Wyoming Community Development
Auth. Rev., Series 1990 B,
(Single Family Mortgage),
8.125%, 6/1/21 (FHA) 200
-----------
TOTAL MUNICIPAL SECURITIES -- 97.5% 105,657
-----------
(Cost $97,998)
SHORT-TERM MUNICIPAL SECURITIES -- 2.2%
CALIFORNIA
2,400 California VRDN, 4.15%,
12/1/97 2,400
-----------
(Cost $2,400)
TEMPORARY CASH INVESTMENTS -- 0.3%
352,000 Units of Participation in Chase
Vista Tax-Free Money Market
Fund (Institutional Shares) 352
-----------
(Cost $352)
TOTAL INVESTMENT SECURITIES -- 100.0% $108,409
===========
(Cost $100,750)
NOTES TO SCHEDULE OF INVESTMENTS
AMBAC = AMBAC Indemnity Corporation
FGIC = Financial Guaranty Insurance Co.
FHA = Federal Housing Authority
FNMA = Federal National Mortgage Association
FSA = Financial Security Assurance
GO = General Obligation
LOC = Letter of Credit
MBIA = MBIA Insurance Corp.
VRDN = Variable Rate Demand Note. Interest reset date is indicated and used in
calculating the weighted average portfolio maturity. Rate shown is
effective November 30, 1997.
(1) Investment in state is less than 0.05% of the Fund's total investment
securities.
(2) Escrowed to maturity in U.S. Government Securities.
(3) Security is a zero-coupon municipal bond. The yield at purchase is
indicated. Zero-coupon securities are purchased at a substantial discount
from their value at maturity.
See Notes to Financial Statements
10 LONG-TERM TAX-FREE AMERICAN CENTURY INVESTMENTS
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
<CAPTION>
LIMITED-TERM INTERMEDIATE-TERM LONG-TERM
NOVEMBER 30, 1997 (UNAUDITED) TAX-FREE TAX-FREE TAX-FREE
ASSETS ($ and Shares in Thousands, Except Per-Share Amounts)
<S> <C> <C> <C>
Investment securities, at value
(identified cost of
$36,196, $125,758 and
$100,750, respectively) (Note 3) ... $ 36,738 $131,213 $108,409
Cash ................................. 32 -- 146
Interest receivable .................. 514 2,141 1,872
-------- -------- --------
37,284 133,354 110,427
-------- -------- --------
LIABILITIES
Disbursements in excess
of demand deposit cash ............. 46 288 51
Payable for investments purchased .... 1,016 973 1,914
Payable for capital shares redeemed .. 5 99 81
Accrued management fees (Note 2) ..... 15 56 46
Dividends payable .................... 12 36 31
-------- -------- --------
1,094 1,452 2,123
-------- -------- --------
Net Assets ........................... $ 36,190 $131,902 $108,304
======== ======== ========
CAPITAL SHARES
Outstanding (Unlimited number
of shares authorized) .............. 3,579 12,606 10,059
======== ======== ========
Net Asset Value Per Share ............ $ 10.11 $ 10.46 $ 10.77
======== ======== ========
NET ASSETS CONSIST OF:
Capital paid-in ...................... $ 35,623 $126,191 $ 99,876
Accumulated undistributed net realized
gain from investment transactions .. 25 256 769
Net unrealized appreciation
on investments (Note 3) ............ 542 5,455 7,659
-------- -------- --------
$ 36,190 $131,902 $108,304
======== ======== ========
</TABLE>
See Notes to Financial Statements
SEMIANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES 11
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE ONE MONTH ENDED LIMITED-TERM INTERMEDIATE-TERM LONG-TERM
NOVEMBER 30, 1997 (UNAUDITED) TAX-FREE TAX-FREE TAX-FREE
INVESTMENT INCOME ($ In Thousands)
Income:
<S> <C> <C> <C>
Interest ............................ $ 136 $ 563 $ 493
----- ----- -----
Expenses (Note 2):
Management fees ..................... 15 55 46
----- ----- -----
Net investment income ............... 121 508 447
----- ----- -----
REALIZED AND UNREALIZED
GAIN (LOSS)
ON INVESTMENTS (NOTE 3)
Net realized gain on investments .... 7 -- 46
Change in net unrealized appreciation
(depreciation) on investments .... (15) 63 93
----- ----- -----
Net realized and unrealized
gain (loss) on investments .......... (8) 63 139
----- ----- -----
Net Increase in Net Assets
Resulting from Operations ........... $ 113 $ 571 $ 586
===== ===== =====
See Notes to Financial Statements
</TABLE>
12 STATEMENTS OF OPERATIONS AMERICAN CENTURY INVESTMENTS
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
ONE MONTH ENDED NOVEMBER 30, 1997 (UNAUDITED)
AND YEAR ENDED OCTOBER 31, 1997
LIMITED-TERM INTERMEDIATE-TERM LONG-TERM
TAX-FREE TAX-FREE TAX-FREE
Nov. 30, Oct. 31, Nov. 30, Oct. 31, Nov. 30, Oct. 31,
Increase (Decrease) in Net Assets 1997 1997 1997 1997 1997 1997
OPERATIONS
($ and Shares In Thousands)
<S> <C> <C> <C> <C> <C> <C>
Net investment income .......... $ 121 $ 1,796 $ 508 $ 3,978 $ 447 $ 3,377
Net realized gain on
investments .................. 7 283 -- 758 46 1,546
Change in net unrealized
appreciation (depreciation)
on investments ............... (15) 164 63 1,119 93 853
--------- --------- --------- --------- --------- ---------
Net increase in net assets
resulting from operations .... 113 2,243 571 5,855 586 5,776
--------- --------- --------- --------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ..... (121) (1,796) (508) (3,978) (447) (3,377)
From net realized gains from
investment transactions ...... -- (281) -- (686) -- (823)
--------- --------- --------- --------- --------- ---------
Decrease in net assets
from distributions ........... (121) (2,077) (508) (4,664) (447) (4,200)
--------- --------- --------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ...... 1,218 25,373 1,091 24,839 2,491 29,116
Proceeds from shares issued in
connection with acquisition .. -- -- -- 60,519 -- 52,028
Proceeds from reinvestment
of distributions ............. 100 1,901 388 3,963 336 3,588
Payments for shares redeemed ... (1,557) (40,869) (2,056) (38,664) (3,530) (38,212)
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in
net assets from capital
share transactions ........... (239) (13,595) (577) 50,657 (703) 46,520
--------- --------- --------- --------- --------- ---------
Net increase (decrease)
in net assets ................ (247) (13,429) (514) 51,848 (564) 48,096
NET ASSETS
Beginning of period ............ 36,437 49,866 132,416 80,568 108,868 60,772
--------- --------- --------- --------- --------- ---------
End of period .................. $ 36,190 $ 36,437 $ 131,902 $ 132,416 $ 108,304 $ 108,868
========= ========= ========= ========= ========= =========
TRANSACTIONS IN SHARES
OF THE FUNDS
Sold ........................... 120 2,515 105 2,387 232 2,730
Shares issued in connection
with acquisition ............. -- -- -- 5,830 -- 4,905
Issued in reinvestment
of distributions ............. 10 189 37 381 31 337
Redeemed ....................... (154) (4,050) (197) (3,725) (329) (3,591)
--------- --------- --------- --------- --------- ---------
Net increase (decrease) ........ (24) (1,346) (55) 4,873 (66) 4,381
========= ========= ========= ========= ========= =========
</TABLE>
See Notes to Financial Statements
SEMIANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS 13
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1997 (UNAUDITED)
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION--American Century Municipal Trust (the Trust), is registered
under the Investment Company Act of 1940 as an open-end management investment
company. American Century - Benham Limited-Term Tax-Free Fund (Limited-Term),
American Century - Benham Intermediate-Term Tax-Free Fund (Intermediate-Term),
and American Century - Benham Long-Term Tax-Free Fund (Long-Term) (the Funds)
are three of the seven funds composing the Trust. The Funds are diversified
under the 1940 Act. Their objective is to seek as high a level of current income
exempt from federal income taxes as is consistent with prudent investment
management and conservation of shareholders' capital. The Funds invest primarily
in municipal obligations with maturities based on each Fund's investment
objective. The Funds may concentrate their investments in certain states and
therefore may have more exposure to credit risk related to those states than
funds that have broader geographical diversification. The following significant
accounting policies, related to the Funds, are in accordance with accounting
policies generally accepted in the investment company industry.
SECURITY VALUATIONS--Portfolio securities are valued at current market value
as provided by a commercial pricing service or at the mean of the most recent
bid and asked prices. When valuations are not readily available, securities are
valued at fair value as determined in accordance with procedures adopted by the
Board of Trustees.
SECURITY TRANSACTIONS--Security transactions are accounted for on the date
purchased or sold. Net realized gains and losses are determined on the
identified cost basis, which is also used for federal income tax purposes.
INVESTMENT INCOME--Interest income is recorded on the accrual basis and
includes amortization of discounts and accretion of premiums.
INCOME TAX STATUS--It is the policy of the Funds to distribute all net
investment income and net realized capital gains to shareholders and to
otherwise qualify as a regulated investment company under the provisions of the
Internal Revenue Code. Accordingly, no provision has been made for federal
taxes.
DISTRIBUTIONS TO SHAREHOLDERS--Distributions from net investment income are
declared daily and distributed monthly. Distributions from net realized gains
are declared and paid annually.
The character of distributions made during the year from net investment
income or net realized gains may differ from their ultimate characterization for
federal income tax purposes due to differences in the recognition of income and
expense items for financial reporting and tax purposes.
ADDITIONAL INFORMATION--Certain officers and trustees of the Trust are also
officers and/or directors, and as a group, controlling stockholders of American
Century Companies, Inc., the parent of the Trust's investment manager, American
Century Investment Management, Inc. (ACIM), the Trust's distributor, American
Century Investment Services, Inc. and the Trust's transfer agent, American
Century Services Corporation.
FUTURES CONTRACTS--The Funds may buy and sell interest rate futures
contracts relating to debt securities and write and buy put and call options
relating to interest rate futures contracts. The Funds may use futures and
options transactions to maintain cash reserves while remaining fully invested,
to facilitate trading, to reduce transaction costs, or to pursue higher
investment returns when a futures contract is priced more attractively than its
underlying security or index. One of the risks of entering into futures
contracts may include the possibility that the changes in value of the contract
may not correlate with the changes in value of the underlying securities. Upon
entering into a futures contract, the Fund is required to deposit either cash or
securities in an amount equal to a certain percentage of the contract value
(initial margin). Subsequent payments (variation margin) are made or received
daily, in cash, by the Fund. The variation margin is equal to the daily change
in the contract value and is recorded as an unrealized gain and loss. The Fund
recognizes a realized gain or loss when the contract is closed or expires.
USE OF ESTIMATES--The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the period. Actual results could differ from these
estimates.
14 NOTES TO FINANCIAL STATEMENTS AMERICAN CENTURY INVESTMENTS
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH RELATED PARTIES
The Trust has entered into a Management Agreement with ACIM in which ACIM
provides all services required by the Funds in exchange for one unified
management fee. Expenses excluded from this agreement are brokerage, taxes,
portfolio insurance, interest, fees and expenses of the Trustees who are not
considered "interested persons" as defined in the Investment Company Act of 1940
(including counsel fees) and extraordinary expenses. The annual rate at which
this fee is assessed is determined monthly in a two-step process: First, a fee
rate schedule is applied to the assets of all of the funds in the Fund's
investment category which are managed by ACIM (the "Investment Category Fee").
The overall investment objective of each Fund determines its Investment
Category. The three investment categories are: the Money Market Fund Category,
the Bond Fund Category and the Equity Fund Category. The Funds are included in
the Bond Fund Category. Second, a separate fee rate schedule is applied to the
assets of all of the funds managed by ACIM (the "Complex Fee"). The Investment
Category Fee and the Complex Fee are then added to determine the unified
management fee rate. The management fee is paid monthly by each Fund based on
each Fund's aggregate average daily net assets during the previous month
multiplied by the monthly management fee rate.
The annualized Investment Category Fee schedule for each Fund is as follows:
0.2800% of the first $1 billion
0.2280% of the next $1 billion
0.1980% of the next $3 billion
0.1780% of the next $5 billion
0.1650% of the next $15 billion
0.1630% of the next $25 billion
0.1625% of the average daily net assets over $50 billion
The annualized Complex Fee schedule (for all Funds) is as follows:
0.3100% of the first $2.5 billion
0.3000% of the next $7.5 billion
0.2985% of the next $15 billion
0.2970% of the next $25 billion
0.2960% of the next $50 billion
0.2950% of the next $100 billion
0.2940% of the next $100 billion
0.2930% of the next $200 billion
0.2920% of the next $250 billion
0.2910% of the next $500 billion
0.2900% of the average daily net assets over $1,250 billion
SEMIANNUAL REPORT NOTES TO FINANCIAL STATEMENTS 15
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS
Investment transactions, excluding short-term investments, for the one-month
ended November 30, 1997, were as follows:
<TABLE>
LIMITED-TERM INTERMEDIATE-TERM LONG-TERM
- -------------------------------------------------------------------------------------------------
($ in Thousands)
PURCHASES
<S> <C> <C> <C>
Municipal Debt Obligations ............ $2,027 $971 $3,817
PROCEEDS FROM SALES
Municipal Debt Obligations ............ $2,169 -- $4,265
At November 30, 1997, the composition of unrealized appreciation and
depreciation of investment securities based on the aggregate cost of investments
for federal income tax purposes was as follows:
LIMITED-TERM INTERMEDIATE-TERM LONG-TERM
- -------------------------------------------------------------------------------------------------
($ in Thousands)
Appreciation .......................... $543 $5,455 $7,659
Depreciation .......................... 1 -- --
--------- --------- ---------
Net ................................... $542 $5,455 $7,659
========= ========= =========
</TABLE>
The aggregate cost of investments for federal income tax purposes was the same
as the cost for financial reporting purposes.
16 NOTES TO FINANCIAL STATEMENTS AMERICAN CENTURY INVESTMENTS
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
LIMITED-TERM TAX-FREE
For a Share Outstanding Throughout the Years Ended October 31 (except as noted)
1997(1) 1997 1996 1995 1994 1993(2)
PER-SHARE DATA
Net Asset Value,
<S> <C> <C> <C> <C> <C> <C>
Beginning of Period ..................... $10.11 $10.08 $10.09 $9.95 $10.04 $10.00
----------- --------- ----------- ----------- ---------- ----------
Income From
Investment Operations
Net Investment Income ................. 0.03 0.41 0.43 0.44 0.36 0.21
Net Realized and Unrealized
Gain (Loss)
on Investment Transactions ............ -- 0.10 (0.01) 0.14 (0.09) 0.04
----------- --------- ----------- ----------- ---------- ----------
Total From Investment
Operations ............................ 0.03 0.51 0.42 0.58 0.27 0.25
----------- --------- ----------- ----------- ---------- ----------
Distributions
From Net Investment Income ............ (0.03) (0.41) (0.43) (0.44) (0.36) (0.21)
From Net Realized Gains
on Investment Transactions ............ -- (0.07) -- -- -- --
----------- --------- ----------- ----------- ---------- ----------
Total Distributions ................... (0.03) (0.48) (0.43) (0.44) (0.36) (0.21)
----------- --------- ----------- ----------- ---------- ----------
Net Asset Value, End of Period .......... $10.11 $10.11 $10.08 $10.09 $9.95 $10.04
=========== ========= =========== =========== ========== ==========
Total Return(3) ....................... 0.33% 5.22% 4.26% 5.95% 2.75% 2.55%
RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets ................... 0.52%(4) 0.59% 0.38%(5) --(5) --(5) --(5)
Ratio of Net Investment Income
to Average Net Assets ................... 4.08%(4) 4.05% 4.28% 4.38% 3.62% 3.09%(4)
Portfolio Turnover Rate ................. 6% 74% 68% 78% 42% 3%
Net Assets, End
of Period (in thousands) ................ $36,190 $36,437 $49,866 $58,837 $60,857 $52,265
</TABLE>
(1) One month ended November 30, 1997 (unaudited). The Fund's fiscal year-end
was changed from October 31 to May 31 resulting in a one month semiannual
reporting period.
(2) March 1, 1993 (inception) through October 31, 1993.
(3) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.
(4) Annualized.
(5) American Century Investment Management, Inc. had voluntarily waived its
management fee through February 29, 1996. In absence of the waiver, the
ratio of operating expenses to average net assets would have been 0.60%.
See Notes to Financial Statements
SEMIANNUAL REPORT FINANCIAL HIGHLIGHTS 17
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
INTERMEDIATE-TERM TAX-FREE
For a Share Outstanding Throughout the Years Ended October 31 (except as noted)
1997(1) 1997 1996 1995 1994 1993(2)
PER-SHARE DATA
Net Asset Value,
<S> <C> <C> <C> <C> <C> <C>
Beginning of Period ................... $10.46 $10.35 $10.45 $10.01 $10.75 $10.27
----------- --------- ----------- ----------- ---------- ----------
Income From Investment
Operations
Net Investment Income ............... 0.04 0.49 0.48 0.49 0.48 0.48
Net Realized and
Unrealized Gain (Loss)
on Investment Transactions .......... -- 0.21 (0.03) 0.52 (0.61) 0.55
----------- --------- ----------- ----------- ---------- ----------
Total From
Investment Operations ............... 0.04 0.70 0.45 1.01 (0.13) 1.03
----------- --------- ----------- ----------- ---------- ----------
Distributions
From Net Investment Income .......... (0.04) (0.49) (0.48) (0.49) (0.48) (0.48)
From Net Realized Gains
on Investment Transactions .......... -- (0.10) (0.07) (0.08) (0.13) (0.07)
----------- --------- ----------- ----------- ---------- ----------
Total Distributions ................. (0.04) (0.59) (0.55) (0.57) (0.61) (0.55)
----------- --------- ----------- ----------- ---------- ----------
Net Asset Value, End of Period ........ $10.46 $10.46 $10.35 $10.45 $10.01 $10.75
=========== ========= =========== =========== ========== ==========
Total Return(3) ..................... 0.39% 6.88% 4.47% 10.41% (1.25)% 10.25%
RATIOS/SUPPLEMENTAL DATA
Ratio of Operating
Expenses
to Average Net Assets ................. 0.51%(4) 0.58% 0.60% 0.60% 0.60% 0.72%
Ratio of Net Investment Income
to Average Net Assets ................. 4.70%(4) 4.71% 4.66% 4.77% 4.59% 4.51%
Portfolio Turnover Rate ............... -- 35% 39% 32% 74% 38%
Net Assets, End
of Period (in thousands) .............. $131,902 $132,416 $80,568 $80,248 $81,400 $98,740
</TABLE>
(1) One month ended November 30, 1997 (unaudited). The Fund's fiscal year-end
was changed from October 31 to May 31 resulting in a one month semiannual
reporting period.
(2) The data presented has been restated to give effect to a 10 to 1 stock
split in the form of a stock dividend that occurred on November 13, 1993.
(3) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.
(4) Annualized.
See Notes to Financial Statements
18 FINANCIAL HIGHLIGHTS AMERICAN CENTURY INVESTMENTS
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
LONG-TERM TAX-FREE
For a Share Outstanding Throughout the Years Ended October 31 (except as noted)
1997(1) 1997 1996 1995 1994 1993(2)
PER-SHARE DATA
Net Asset Value,
<S> <C> <C> <C> <C> <C> <C>
Beginning of Period .................... $10.75 $10.58 $10.54 $9.75 $11.10 $10.36
----------- --------- ----------- ----------- ---------- ----------
Income From
Investment Operations
Net Investment Income ................ 0.04 0.55 0.53 0.53 0.52 0.53
Net Realized and Unrealized
Gain (Loss)
on Investment Transactions ........... 0.02 0.33 0.04 0.83 (1.01) 0.90
----------- --------- ----------- ----------- ---------- ----------
Total From Investment
Operations ........................... 0.06 0.88 0.57 1.36 (0.49) 1.43
----------- --------- ----------- ----------- ---------- ----------
Distributions
From Net Investment Income ........... (0.04) (0.55) (0.53) (0.53) (0.52) (0.53)
From Net Realized Gains
on Investment Transactions ........... -- (0.16) -- (0.04) (0.34) (0.16)
----------- --------- ----------- ----------- ---------- ----------
Total Distributions .................. (0.04) (0.71) (0.53) (0.57) (0.86) (0.69)
----------- --------- ----------- ----------- ---------- ----------
Net Asset Value, End of Period ......... $10.77 $10.75 $10.58 $10.54 $9.75 $11.10
=========== ========= =========== =========== ========== ==========
Total Return(3) ...................... 0.60% 8.59% 5.60% 14.45% (4.70)% 14.32%
RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets .................. 0.51%(4) 0.58% 0.59% 0.59% 0.60% 0.73%
Ratio of Net Investment Income
to Average Net Assets .................. 5.05%(4) 5.16% 5.06% 5.24% 5.00% 4.90%
Portfolio Turnover Rate ................ 4% 65% 60% 61% 66% 81%
Net Assets, End
of Period (in thousands) ............... $108,304 $108,868 $60,772 $57,997 $50,964 $70,757
</TABLE>
(1) One month ended November 30, 1997 (unaudited). The Fund's fiscal year-end
was changed from October 31 to May 31 resulting in a one month semiannual
reporting period.
(2) The data presented has been restated to give effect to a 10 to 1 stock
split in the form of a stock dividend that occurred on November 13, 1993.
(3) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.
(4) Annualized.
See Notes to Financial Statements
SEMIANNUAL REPORT FINANCIAL HIGHLIGHTS 19
NOTES
20 NOTES AMERICAN CENTURY INVESTMENTS
NOTES
SEMIANNUAL REPORT NOTES 21
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