AMERICAN CENTURY MUNICIPAL TRUST
PROSPECTUS SUPPLEMENT
Arizona Intermediate-Term Municipal * Florida
Municipal Money Market * Florida Intermediate-Term
Municipal * Tax-Free Money Market * Limited-Term Tax-Free *
Intermediate-Term Tax-Free * Long-Term Tax-Free
SUPPLEMENT DATED FEBRUARY 28, 1998
Prospectus dated September 2, 1997
THE FOLLOWING DISCLOSURE REPLACES THE PARAGRAPHS 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 SHOULD BE INSERTED AS THE SECOND PARAGRAPH UNDER THE
HEADING "AMERICAN CENTURY INVESTMENTS" ON PAGE 21 OF THE PROSPECTUS.
To reduce expenses and demonstrate respect for our environment, we have
initiated a project through which we will eliminate duplicate copies of most
financial reports and prospectuses to most households and deliver account
statements to most households in a single envelope, even if they have more than
one account. If you would like additional copies of financial reports and
prospectuses or separate mailing of account statements, please call us.
THE FOLLOWING DISCLOSURE IS ADDED ON PAGE 28 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 ON PAGE 33 OF THE PROSPECTUS, FOLLOWING THE
LAST PARAGRAPH UNDER THE HEADING "TRANSFER AND ADMINISTRATIVE SERVICES."
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.
THE FOLLOWING DISCLOSURE REPLACES THE FIRST SENTENCE UNDER THE HEADING
"DISTRIBUTION OF FUND SHARES" FOUND ON PAGE 33 OF THE PROSPECTUS.
The funds' shares are distributed by FDI, a registered broker-dealer (the
Distributor). 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.
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.
AMERICAN CENTURY MUNICIPAL TRUST
PLEASE INSERT THE FOLLOWING INFORMATION ON PAGES 9, 10 AND 11:
<TABLE>
<CAPTION>
For a Share Outstanding Throughout the Year Ended October 31, 1997
INTERMEDIATE-
LIMITED-TERM TERM LONG-TERM
TAX-FREE TAX-FREE TAX-FREE
PER-SHARE DATA
Net Asset Value,
<S> <C> <C> <C>
Beginning of Period .......................... $10.08 $10.35 $10.58
-------- -------- --------
Income From Investment Operations
Net Investment Income ...................... 0.41 0.49 0.55
Net Realized and Unrealized Gain (Loss)
on Investment Transactions ................. 0.10 0.21 0.33
-------- -------- --------
Total From Investment Operations ........... 0.51 0.70 0.88
-------- -------- --------
Distributions
From Net Investment Income ................. (0.41) (0.49) (0.55)
From Net Realized Gains
on Investment Transactions ................. (0.07) (0.10) (0.16)
-------- -------- --------
Total Distributions ........................ (0.48) (0.59) (0.71)
-------- -------- --------
Net Asset Value, End of Period ............... $10.11 $10.46 $10.75
======== ======== ========
TOTAL RETURN(1) ............................ 5.22% 6.88% 8.59%
RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets ........................ 0.59% 0.58% 0.58%
Ratio of Net Investment Income
to Average Net Assets ........................ 4.05% 4.71% 5.16%
Portfolio Turnover Rate ...................... 74% 35% (2) 65% (3)
Net Assets, End
of Period (in thousands) ..................... $36,437 $132,416 $108,868
</TABLE>
(1) TOTAL RETURN ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS
DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
(2) PURCHASES, SALES, AND MARKET VALUE AMOUNTS FOR BENHAM INTERMEDIATE-TERM
TAX-FREE FUND PRIOR TO THE MERGER WERE EXCLUDED FROM THE PORTFOLIO TURNOVER
CALCULATION.
(3) PURCHASES, SALES, AND MARKET VALUE AMOUNTS FOR BENHAM LONG-TERM TAX-FREE
FUND PRIOR TO THE MERGER WERE EXCLUDED FROM THE PORTFOLIO TURNOVER
CALCULATION.
[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-11692 9802
<PAGE>
AMERICAN CENTURY MUNICIPAL TRUST
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
SUPPLEMENT DATED FEBRUARY 28, 1998 TO Statement of
Additional Information dated September 2, 1997
ON PAGE 1, PLEASE DELETE THE FIRST TWO SENTENCES OF THE PARAGRAPH UNDER THE
HEADING "AMERICAN CENTURY MUNICIPAL TRUST" AND REPLACE WITH THE FOLLOWING:
This Statement is not a prospectus but should be read in conjunction with
the Funds' current Prospectus dated September 2, 1997. The Arizona Fund, Florida
Funds and Tax-Free Money Market Funds' annual and semiannual reports, which are
dated May 31, 1997 and November 30, 1997, respectively, are incorporated herein
by reference. The Limited-Term Tax-Free, Intermediate-Term Tax-Free and
Long-Term Tax-Free Funds' annual and semiannual reports, which are dated October
31, 1997 and November 30, 1997, respectively, are incorporated herein by
reference.
ON PAGE 8, 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.
ON PAGE 14, 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. For periods after the first full quarter after inception, actual
performance of the new class will be used.
ON PAGE 19, 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 19, 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 23, 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.
[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-11693 9802
