[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg. sm)]
AMERICAN
CENTURY
Arizona Intermediate-Term Municipal Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[three photos of bubble blowing woman and child,
business men, woman at computer]
APRIL 25, 1999
INVESTOR CLASS
You may obtain the Prospectus and other information about the fund at no cost
by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
ARIZONA INTERMEDIATE-TERM MUNICIPAL FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Arizona Intermediate-Term Municipal seeks safety of principal and high
current income that is exempt from federal and Arizona income taxes.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers buy quality, intermediate-term debt securities with income
payments exempt from federal and Arizona income taxes. Cities, counties and
other municipalities in Arizona usually issue these securities for public
projects, such as schools and roads.
The fund managers also may buy quality, intermediate-term debt securities
whose payments are exempt from federal and Arizona income taxes, but not the
federal alternative minimum tax. Cities, counties and other municipalities
in Arizona usually issue these securities (called private activity bonds) to
fund for-profit private projects, such as hospitals and athletic stadiums.
The fund managers also may use futures contracts and options to pursue the
fund's investment objective.
During unusual market conditions, the fund is permitted to keep a
significant amount of its assets in cash or cash-equivalents. If it does, it
may not achieve its investment objective and may generate taxable income.
The weighted average maturity of the fund is expected to be between five and
10 years.
Additional information about Arizona Intermediate-Term Municipal's
investments is available in its annual and semiannual reports. In these
reports you will find a discussion of the market conditions and investment
strategies that significantly affected the fund's performance during the
most recent fiscal period. You may get these reports at no cost by calling
us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. The interest rate risk for
Arizona Intermediate-Term Municipal is higher than for funds which have
shorter weighted average maturities, such as money market and short-term
bond funds.
* The fund may invest in securities rated in the lowest investment-grade
category (e.g., Baa or BBB). The issuers of these securities are more likely
to have problems making interest and principal payments.
* Some or all of the fund's income may be subject to the federal alternative
minimum tax.
* Because the fund invests primarily in Arizona municipal securities, it
will be sensitive to events that affect Arizona's economy. Arizona
Intermediate-Term Municipal may have a higher level of risk than funds that
invest in a larger universe of securities.
* As with all funds, at any given time the value of your shares of Arizona
Intermediate-Term Municipal may be worth more or less than the price you
paid. If you sell your shares when the value is less than the price you
paid, you will lose money.
* An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.
In summary, Arizona Intermediate-Term Municipal is intended for investors
who seek safety of principal and high current income that is exempt from
federal and Arizona income taxes through a municipal securities fund, and
who are willing to accept the risks associated with the fund's investment
strategy.
Arizona Intermediate-Term Municipal American Century Investments
FUND PERFORMANCE
The following bar chart shows the actual performance of Arizona
Intermediate-Term Municipal's shares for each calendar year since the fund's
inception on April 11, 1994. The bar chart indicates the volatility of the
fund's historical returns from year to year. The bar chart and the
performance information below are not intended to indicate how the fund will
perform in the future.
[bar chart]
Calendar Year-By-Year Returns (1)
1998 5.90%
1997 6.90%
1996 3.74%
1995 13.15%
(1) As of March 31, 1999, the end of the most recent calendar quarter,
Arizona Intermediate-Term Municipal's year-to-date return was 0.60%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
---------------------------------------------------------------------------
Arizona Intermediate-
Term Municipal 4.6% (1Q 1995) -0.53% (1Q 1996)
The following table shows the average annual returns of the fund's shares
for the periods indicated. The Lehman 5-Year General Obligation Index, an
unmanaged index that reflects no operating costs, is included as a benchmark
for performance comparisons. For current performance information, including
yields, please call us or access our Web site.
1 YEAR LIFE OF FUND(1)
---------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED MARCH 31, 1999)
---------------------------------------------------------------------------
Arizona Intermediate-Term Municipal 5.79% 6.44%
Lehman 5-Year General Obligation Index 5.69% 6.14%(2)
(1) The inception date of Arizona Intermediate-Term Municipal is April
11, 1994.
(2) Benchmark from April 30, 1994.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges
* to buy fund shares directly from American Century
* to reinvest dividends in additional shares
* to exchange into the Investor Class shares of other American Century fund
* to redeem your shares
The following table describes the fees and expenses that you will pay if you
buy and hold shares of the fund.
---------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
---------------------------------------------------------------------------
Management Fee 0.51%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.01%
Total Annual Fund Operating Expenses 0.52%
(1) Based on expenses incurred during the fund's most recent fiscal year.
The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.
(2) Other expenses include the fees and expenses of the fund's
independent trustees, their legal counsel, interest and extraordinary
expenses.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
---------------------------------------------------------------------------
$53 $167 $290 $652
Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.
Fund Profile Arizona Intermediate-Term Municipal
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment advisory
and management services for the fund. American Century uses teams of
portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio manager who leads the
team that manages Arizona Intermediate-Term Municipal is identified as
follows:
KENNETH SALINGER, Portfolio Manager, has been a member of the Arizona
Intermediate-Term Municipal team since July 1998. He joined American Century
in April 1992. He has a bachelor's degree in quantitative economics from the
University of California-San Diego.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $5,000. If your redemption activity
causes the value of your account to fall below this account minimum, your
shares may be redeemed involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by writing
or calling us. You also may exchange your shares in Arizona
Intermediate-Term Municipal for shares in nearly 70 other mutual funds
offered by American Century. Depending on the options you select when you
open your account, some restrictions may apply. For your protection, some
redemption requests require a signature guarantee.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Arizona Intermediate-Term Municipal pays distributions of substantially all
of its income monthly. Distributions will generally be exempt from federal
and Arizona income taxes. Some or all of the fund's income may, however, be
subject to the federal alternative minimum tax. Consult your tax advisor for
information about whether you are subject to the federal alternative minimum
tax. Distributions are reinvested automatically in additional shares unless
you choose another option.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in our Investor Services
Guide, which you may request by calling us, accessing our Web site or
visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call
a Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo(reg. sm)]
AMERICAN
CENTURY
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]
SH-PRF-16141 9904 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg. sm)]
AMERICAN
CENTURY
Florida Intermediate-Term Municipal Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[three photos of bubble blowing woman and child,
business men, woman at computer]
APRIL 25, 1999
INVESTOR CLASS
You may obtain the Prospectus and other information about the fund at no cost
by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
FLORIDA INTERMEDIATE-TERM MUNICIPAL FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Florida Intermediate-Term Municipal seeks safety of principal and high
current income that is exempt from federal income tax and seeks to be exempt
from the Florida intangible personal property tax.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers buy quality, intermediate-term debt securities with income
payments exempt from federal income tax and the Florida intangible personal
property tax. Cities, counties and other municipalities in Florida usually
issue these securities for public projects, such as schools and roads.
The fund managers also may buy quality, intermediate-term debt securities
whose payments are exempt from federal income tax and the Florida intangible
personal property tax, but not the federal alternative minimum tax. Cities,
counties and other municipalities in Florida usually issue these securities
(called private activity bonds) to fund for-profit private projects, such as
hospitals and athletic stadiums.
The fund managers also may use futures contracts and options to pursue the
fund's investment objective.
During unusual market conditions, the fund is permitted to keep a
significant amount of its assets in cash or cash-equivalents. If it does, it
may not achieve its investment objective and may generate taxable income.
The weighted average maturity of the fund is expected to be between five and
10 years.
Additional information about Florida Intermediate-Term Municipal's
investments is available in its annual and semiannual reports. In these
reports you will find a discussion of the market conditions and investment
strategies that significantly affected the fund's performance during the
most recent fiscal period. You may get these reports at no cost by calling
us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. The interest rate risk for
Florida Intermediate-Term Municipal is higher than for funds that have
shorter weighted average maturities, such as money market and short-term
bond funds.
* The fund may invest in securities rated in the lowest investment-grade
category (e.g., Baa or BBB). The issuers of these securities are more likely
to have problems making interest and principal payments.
* Some or all of the fund's income may be subject to the federal alternative
minimum tax.
* Because the fund invests primarily in Florida municipal securities, it
will be sensitive to events that affect Florida's economy. Florida
Intermediate-Term Municipal may have a higher level of risk than funds that
invest in a larger universe of securities.
* As with all funds, at any given time the value of your shares of Florida
Intermediate-Term Municipal may be worth more or less than the price you
paid. If you sell your shares when the value is less than the price you
paid, you will lose money.
* An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.
In summary, Florida Intermediate-Term Municipal is intended for investors
who seek safety of principal and high current income that is exempt from
federal income tax and the Florida intangible personal property tax through
a municipal securities fund, and who are willing to accept the risks
associated with the fund's investment strategy.
Florida Intermediate-Term Municipal American Century Investments
FUND PERFORMANCE
The following bar chart shows the actual performance of Florida
Intermediate-Term Municipal's shares for each calendar year since the fund's
inception on April 11, 1994. The bar chart indicates the volatility of the
fund's historical returns from year to year. The bar chart and the
performance information below are not intended to indicate how the fund will
perform in the future.
[bar chart]
Calendar Year-By-Year Returns (1)
1998 6.49%
1997 8.22%
1996 3.66%
1995 13.49%
(1) As of March 31, 1999, the end of the most recent calendar quarter,
Florida Intermediate-Term Municipal's year-to-date return was 0.63%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
---------------------------------------------------------------------------
Florida Intermediate-
Term Municipal 5.06% (1Q 1995) -0.51% (1Q 1996)
The following table shows the average annual returns of the fund's shares
for the periods indicated. The Lehman 5-Year General Obligation Index, an
unmanaged index that reflects no operating costs, is included as a benchmark
for performance comparisons. For current performance information, including
yields, please call us or access our Web site.
1 YEAR LIFE OF FUND(1)
---------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED MARCH 31, 1999)
---------------------------------------------------------------------------
Florida Intermediate-Term Municipal 6.04% 6.70%
Lehman 5-Year General Obligation Index 5.69% 6.14%(2)
(1) The inception date of Florida Intermediate-Term Municipal is April
11, 1994.
(2) Benchmark from April 30, 1994.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges
* to buy fund shares directly from American Century
* to reinvest dividends in additional shares
* to exchange into the Investor Class shares of other American Century fund
* to redeem your shares
The following table describes the fees and expenses that you will pay if you
buy and hold shares of the fund.
---------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
---------------------------------------------------------------------------
Management Fee 0.51%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.01%
Total Annual Fund Operating Expenses 0.52%
(1) Based on expenses incurred during the fund's most recent fiscal year.
The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.
(2) Other expenses include the fees and expenses of the fund's independent
trustees, their legal counsel, interest and extraordinary expenses.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
---------------------------------------------------------------------------
$53 $167 $290 $652
Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.
Fund Profile Florida Intermediate-Term Municipal
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment advisory
and management services for the fund. American Century uses teams of
portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio manager who leads the
team that manages Florida Intermediate-Term Municipal is identified as
follows:
KENNETH SALINGER, Portfolio Manager, has been a member of the Florida
Intermediate-Term Municipal team since October 1996. He joined American
Century in April 1992. He has a bachelor's degree in quantitative economics
from the University of California-San Diego.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $5,000. If your redemption activity
causes the value of your account to fall below this account minimum, your
shares may be redeemed involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by writing
or calling us. You also may exchange your shares in Florida
Intermediate-Term Municipal for shares in nearly 70 other mutual funds
offered by American Century. Depending on the options you select when you
open your account, some restrictions may apply. For your protection, some
redemption requests require a signature guarantee.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Florida Intermediate-Term Municipal pays distributions of substantially all
of its income monthly. Distributions will generally be exempt from the
Florida intangible personal property tax and regular federal income tax.
Some or all of the fund's income may, however, be subject to the federal
alternative minimum tax. Consult your tax advisor for information about
whether you are subject to the federal alternative minimum tax.
Distributions are reinvested automatically in additional shares unless you
choose another option.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in our Investor Services
Guide, which you may request by calling us, accessing our Web site or
visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call
a Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo(reg. sm)]
AMERICAN
CENTURY
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]
SH-PRF-16142 9904 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg. sm)]
AMERICAN
CENTURY
Intermediate-Term Tax-Free Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[three photos of bubble blowing woman and child,
business men, woman at computer]
APRIL 25, 1999
INVESTOR CLASS
You may obtain the Prospectus and other information about the fund at no cost
by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
INTERMEDIATE-TERM TAX-FREE FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Intermediate-Term Tax-Free seeks safety of principal and high current income
that is exempt from federal income tax.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers buy quality, intermediate-term debt securities with income
payments exempt from federal income tax. Cities, counties and other
municipalities in the 50 states and U.S. territories usually issue these
securities for public projects, such as schools and roads.
The fund managers also may buy some quality, intermediate-term debt
securities whose payments are exempt from regular federal income tax, but
not the federal alternative minimum tax. Cities, counties and other
municipalities usually issue these securities (called private activity
bonds) to fund for-profit private projects, such as hospitals and athletic
stadiums. No more than 20% of the fund's total assets may be invested in
these securities.
The weighted average maturity of the fund is expected to be between five and
10 years.
Additional information about Intermediate-Term Tax-Free's investments is
available in its annual and semiannual reports. In these reports you will
find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period. You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. This interest rate risk is
higher for Intermediate-Term Tax-Free than for funds that have shorter
weighted average maturities, such as money market and short-term bond funds.
* The fund may invest in securities rated in the lowest investment-grade
category (e.g., Baa or BBB). The issuers of these securities are more likely
to have problems making interest and principal payments.
* Some of the fund's income may be subject to the federal alternative
minimum tax.
* Because the fund invests primarily in municipal securities, it will be
sensitive to events that affect municipal markets. Intermediate-Term
Tax-Free may have a higher level of risk than funds that invest in a larger
universe of securities.
* As with all funds, at any given time the value of your shares of
Intermediate-Term Tax-Free may be worth more or less than the price you
paid. If you sell your shares when the value is less than the price you
paid, you will lose money.
* An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.
In summary, Intermediate-Term Tax-Free is intended for investors who seek
safety of principal and high current income that is exempt from federal
income tax through a municipal securities fund and who are willing to accept
the risks associated with the fund's investment strategy.
FUND PERFORMANCE
The following bar chart shows the actual performance of Intermediate-Term
Tax-Free's shares for each of the last 10 calendar years. The bar chart
indicates the volatility of the fund's historical returns from year to year.
The bar chart and the performance information below are not intended to
indicate how the fund will perform in the future.
[bar chart]
Calendar Year-By-Year Returns (1)
1998 5.81%
1997 7.44%
1996 3.94%
1995 11.93%
1994 -2.06%
1993 9.07%
1992 7.17%
1991 10.05%
1990 6.28%
1989 6.66%
(1) As of March 31, 1999, the end of the most recent calendar quarter,
Intermediate-Term Tax-Free's year-to-date return was 0.54%.
Intermediate-Term Tax-Free American Century Investments
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
---------------------------------------------------------------------------
Intermediate-Term Tax-Free 4.17% (1Q 1995) -3.54% (1Q 1994)
The following table shows the average annual return of the fund's shares for
the periods indicated. The Lehman 5-Year General Obligation (GO) Index, an
unmanaged index that reflects no operating costs, is included as a benchmark
for performance comparisons. For current performance information, including
yields, please call us or access our Web site.
1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)
---------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED MARCH 31, 1999)
---------------------------------------------------------------------------
Intermediate-Term
Tax-Free 5.58% 6.19% 6.63% 6.00%
Lehman 5-Year
GO Index 5.69% 6.25% 7.12% 5.93%(2)
(1) The inception date for Intermediate-Term Tax-Free is March 2, 1987.
(2) Benchmark from February 28, 1987.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges
* to buy fund shares directly from American Century
* to reinvest dividends in additional shares
* to exchange into the Investor Class shares of other American Century fund
* to redeem your shares
The following table describes the fees and expenses that you will pay if you
buy and hold shares of the fund.
---------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
---------------------------------------------------------------------------
Management Fee 0.51%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.51%
(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.
(2) Other expenses, which include the fees and expenses of the fund's
independent trustees, their legal counsel, interest and
extraordinary expenses, were less than 0.005% for the most recent
fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
---------------------------------------------------------------------------
$52 $163 $285 $640
Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment advisory
and management services for the fund. American Century uses teams of
portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio manager who leads the
team that manages Intermediate-Term Tax-Free is identified as follows:
JOEL SILVA, Vice President and Portfolio Manager, has been a member of the
Intermediate-Term Tax-Free team since June 1994. He joined American Century
in August 1989. He has a bachelor's degree in finance from California
Polytechnic University and an MBA in corporate finance from California State
University - Hayward.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $5,000. If your redemption activity
causes the value of your account to fall below this account minimum, your
shares may be redeemed involuntarily.
Fund Profile Intermediate-Term Tax-Free
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by writing
or calling us. You also may exchange your shares in Intermediate-Term
Tax-Free for shares in nearly 70 other mutual funds offered by American
Century. Depending on the options you select when you open your account,
some restrictions may apply. For your protection, some redemption requests
require a signature guarantee.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Intermediate-Term Tax-Free pays distributions of substantially all of its
income monthly. Distributions will generally be exempt from federal income
tax. Some of the fund's income may, however, be subject to the federal
alternative minimum tax. Consult your tax advisor for information about
whether you are subject to the federal alternative minimum tax.
Distributions are reinvested automatically in additional shares unless you
choose another option.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in our Investor Services
Guide, which you may request by calling us, accessing our Web site or
visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call
a Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo(reg. sm)]
AMERICAN
CENTURY
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]
SH-PRF-16136 9904 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg. sm)]
AMERICAN
CENTURY
Long-Term Tax-Free Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[three photos of bubble blowing woman and child,
business men, woman at computer]
APRIL 25, 1999
INVESTOR CLASS
You may obtain the Prospectus and other information about the fund at no cost
by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
LONG-TERM TAX-FREE FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Long-Term Tax-Free seeks safety of principal and high current income that is
exempt from federal income tax.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers buy quality, long-term debt securities with income
payments exempt from federal income tax. Cities, counties and other
municipalities in the 50 states and U.S. territories usually issue these
securities for public projects, such as schools and roads.
The fund managers also may buy some quality, long-term debt securities whose
payments are exempt from regular federal income tax, but not the federal
alternative minimum tax. Cities, counties and other municipalities usually
issue these securities (called private activity bonds) to fund for-profit
private projects, such as hospitals and athletic stadiums. No more than 20%
of the fund's total assets may be invested in these securities.
The weighted average maturity of the fund is expected to be 10 years or
longer.
Additional information about Long-Term Tax-Free's investments is available
in its annual and semiannual reports. In these reports you will find a
discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period. You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. This interest rate risk is
higher for Long-Term Tax-Free than for funds that have shorter weighted
average maturities, such as money market, short-term and intermediate-term
bond funds.
* The fund may invest in securities rated in the lowest investment-grade
category (e.g., Baa or BBB). The issuers of these securities are more likely
to have problems making interest and principal payments.
* Some of the fund's income may be subject to the federal alternative
minimum tax.
* Because the fund invests primarily in municipal securities, it will be
sensitive to events that affect municipal markets. Long-Term Tax-Free may
have a higher level of risk than funds that invest in a larger universe of
securities.
* As with all funds, at any given time the value of your shares of Long-Term
Tax-Free may be worth more or less than the price you paid. If you sell your
shares when the value is less than the price you paid, you will lose money.
* An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.
In summary, Long-Term Tax-Free is intended for investors who seek safety of
principal and high current income that is exempt from federal income tax
through a municipal securities fund and who are willing to accept the risks
associated with the fund's investment strategy.
FUND PERFORMANCE
The following bar chart shows the actual performance of Long-Term Tax-Free's
shares for each of the last 10 calendar years. The bar chart indicates the
volatility of the fund's historical returns from year to year. The bar chart
and the performance information below are not intended to indicate how the
fund will perform in the future.
[bar chart]
Calendar Year-By-Year Returns (1)
1998 5.94%
1997 9.59%
1996 3.08%
1995 18.50%
1994 -5.58%
1993 12.15%
1992 7.61%
1991 12.01%
1990 6.15%
1989 9.55%
(1) As of March 31, 1999, the end of the most recent calendar quarter,
Long-Term Tax-Free's year-to-date return was 0.35%.
Long-Term Tax-Free American Century Investments
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
---------------------------------------------------------------------------
Long-Term Tax-Free 6.68% (1Q 1995) -5.46% (1Q 1994)
The following table shows the average annual return of the fund's shares for
the periods indicated. The Lehman Long-Term Municipal Bond Index, an
unmanaged index that reflects no operating costs, is included as a benchmark
for performance comparisons. For current performance information, including
yields, please call us or access our Web site.
1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)
---------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED MARCH 31, 1999)
---------------------------------------------------------------------------
Long-Term Tax Free 5.61% 7.28% 7.72% 7.12%
Lehman Long-Term
Municipal Bond
Index 6.56% 8.82% 9.13% 8.68%(2)
(1) The inception date for Long-Term Tax-Free is March 2, 1987.
(2) Benchmark from February 28, 1987.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges
* to buy fund shares directly from American Century
* to reinvest dividends in additional shares
* to exchange into the Investor Class shares of other American Century fund
* to redeem your shares
The following table describes the fees and expenses that you will pay if you
buy and hold shares of the fund.
---------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
---------------------------------------------------------------------------
Management Fee 0.51%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.51%
(1) Based on expenses incurred during the fund's most recent fiscal year.
The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.
(2) Other expenses, which include the fees and expenses of the fund's
independent trustees, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
---------------------------------------------------------------------------
$52 $163 $285 $640
Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment advisory
and management services for the fund. American Century uses teams of
portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio manager who leads the
team that manages Long-Term Tax-Free is identified as follows:
G. DAVID MACEWEN, Senior Vice President and Portfolio Manager, supervises
the American Century Municipal Trust team and has been a member of the
Long-Term Tax-Free team since May 1991. He joined American Century in May
1991 as a Municipal Portfolio Manager. He has a bachelor's degree in
economics from Boston University and an MBA in finance from the University
of Delaware.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $5,000. If your redemption activity
causes the value of your account to fall below this account minimum, your
shares may be redeemed involuntarily.
Fund Profile Long-Term Tax-Free
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by writing
or calling us. You also may exchange your shares in Long-Term Tax-Free for
shares in nearly 70 other mutual funds offered by American Century.
Depending on the options you select when you open your account, some
restrictions may apply. For your protection, some redemption requests
require a signature guarantee.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Long-Term Tax-Free pays distributions of substantially all of its income
monthly. Distributions will generally be exempt from federal income tax.
Some of the fund's income may, however, be subject to the federal
alternative minimum tax. Consult your tax advisor for information about
whether you are subject to the federal alternative minimum tax.
Distributions will automatically be reinvested in additional shares unless
you choose another option.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in our Investor Services
Guide, which you may request by calling us, accessing our Web site or
visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call
a Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo(reg. sm)]
AMERICAN
CENTURY
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]
SH-PRF-16137 9904 Funds Distributor, Inc.
