AMERICAN CENTURY
Fund Profile
[photo of woman sitting on bench, photo of hand holding pencil]
Limited-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.
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.
October 27, 2000
Investor Class
[american century logo (reg. sm) and text logo]
American
Century
LIMITED-TERM TAX-FREE FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Limited-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 short-term, quality 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 short-term, quality debt securities with
income payments exempt from regular federal income tax, but are not exempt
from 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.
In the event of exceptional market or economic conditions, the fund may, as
a temporary defensive measure, invest all or a substantial portion of its
assets in cash or cash-equivalent securities. To the extent the fund assumes
a defensive position, it will not be pursuing its investment objectives and
may generate taxable income.
The weighted average maturity of the fund is expected to be five years or
less.
Additional information about Limited-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 Limited-Term Tax-Free than for funds that have shorter weighted
average maturities, such as money market funds.
* The fund may invest in securities rated in the lowest investment-grade
category (for example, Baa or BBB). The issuers of these securities are more
likely to pose a credit risk, that is, 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. Limited-Term Tax-Free may
have a higher level of risk than funds that invest in a larger universe of
securities.
* As with all funds, your shares may be worth more or less at any given time
than the price you paid for them. As a result, it is possible to lose money
by investing in the fund.
* 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, Limited-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 Limited-Term
Tax-Free's shares for each full calendar year since the fund's inception on
March 1, 1993. 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.
[data shown in bar chart]
Calendar Year-By-Year Returns(1)
1999 1.17%
1998 5.13%
1997 5.60%
1996 3.68%
1995 6.75%
1994 2.47%
(1) As of September 30, 2000, the end of the most recent calendar
quarter, Limited-Term Tax-Free's year-to-date return was 4.29%.
Limited-Term Tax-Free American Century Investments
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
Limited-Term Tax-Free 2.10% (3Q 1998) -0.81% (2Q 1999)
The following table shows the average annual total returns of the fund's
shares for the periods indicated. The Merrill Lynch 0-3 Year Municipal
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 LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 2000)
Limited-Term Tax-Free 4.67% 4.33% 4.27%
Merrill Lynch 0-3 Year
Municipal Index 4.38% 4.30% 4.19%
(1) The inception date for Limited-Term Tax-Free is March 1, 1993.
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 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 0.01%(2)
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 and their legal counsel, as well as interest.
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.
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. Identified below are the portfolio
managers for the Limited-Term Tax-Free team:
G. DAVID MACEWEN, Senior Vice President and Portfolio Manager, supervises
the American Century Municipal Trust team and has been a member of the team
that manages Limited-Term Tax-Free since June 1999. 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.
BRYAN E. KARCHER, Vice President and Portfolio Manager, has been a member of
the team that manages Limited-Term Tax-Free since June 1999. He joined
American Century in July 1989 and has been a Portfolio Manager since June
1995. He has a bachelor's degree in economics from the University of
California - Los Angeles. He is a Chartered Financial Analyst.
Limited-Term Tax-Free Fund Profile
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return an application along with an investment check payable
to American Century Investments
* If you already have an American Century account, call us or access our Web
site to 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 Limited-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?
Limited-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 account access and transactions
You will find more information about these choices in Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
--------------------------------------------------------------------------------
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
1-800-345-3533
Visit our Web site at WWW.AMERICANCENTURY.COM [graphic of arrow]
SH-PRF-22231 0010 American Century Investment Services, Inc., Distributor
[front cover]
American Century
Fund Profile
[photo of woman sitting on bench, photo of hand holding pencil]
Tax-Free Money Market 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.
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.
October 27, 2000
Investor Class
[american century logo (reg. sm) and text logo]
American
Century
TAX-FREE MONEY MARKET FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Tax-Free Money Market 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 cash-equivalent, high-quality debt securities with
interest 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 cash-equivalent, high-quality debt securities
with interest payments exempt from regular federal income tax, but are not
exempt from 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.
Additional information about Tax-Free Money Market'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?
* 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. Although the fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
the fund.
* Because cash-equivalent securities are among the safest securities
available, the interest they pay is among the lowest for interest-paying
securities. Accordingly, the yield on this fund will likely be lower than
funds that invest in longer-term or lower-quality securities.
* 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. Tax-Free Money Market may
have a higher level of risk than funds that invest in a larger universe of
securities.
FUND PERFORMANCE
The following bar chart shows the actual performance of Tax-Free Money
Market'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.
[data shown in bar chart]
Calendar Year-By-Year Returns(1)(2)
1999 2.97%
1998 3.47%
1997 3.43%
1996 2.98%
1995 3.36%
1994 2.31%
1993 1.90%
1992 2.47%
1991 4.21%
1990 5.60%
(1) From August 1, 1997 to December 31, 1998, all or a portion of the
fund's management fee was waived. As a result, the fund's returns
are higher than they would have been had the waiver not been in
effect.
(2) As of September 30, 2000, the end of the most recent calendar
quarter, Tax-Free Money Market's year-to-date return was 2.79%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
------- ------
Tax-Free Money Market 1.45% (4Q 1990) 0.44% (1Q 1994)
The following table shows the average annual total returns of the fund's
shares for the periods indicated. The Lipper Tax-Exempt Money Market
Average, 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.
Tax-Free Money Market American Century Investments
1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)(2)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 2000)
Tax-Free
Money Market 3.63% 3.30% 3.13% 3.89%
Lipper Tax-Exempt
Money Market
Average 3.33% 3.03% 3.01% 3.64%(3)
(1) The inception date for Tax-Free Money Market is July 31, 1984.
(2) From August 1, 1997 to December 31, 1998, all or a portion of the
fund's management fee was waived. As a result, the fund's returns are
higher than they would have been had the waiver not been in effect.
(3) Since August 31, 1984, the date closest to the fund's inception for
which data are available.
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 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 0.49%(1)
Distribution and Service (12b-1) Fees None
Other Expenses 0.01%(2)
Total Annual Fund Operating Expenses 0.50%
(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 and their legal counsel, as well as interest.
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
$51 $160 $279 $627
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. Identified below is the portfolio
manager who leads the team that manages Tax-Free Money Market:
BRYAN E. KARCHER, Vice President and Portfolio Manager, has been a member of
the Tax-Free Money Market team since June 1995. He joined American Century
in July 1989 and has been a Portfolio Manager since June 1995. He has a
bachelor's degree in economics from the University of California-Los
Angeles. He is a Chartered Financial Analyst.
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return an application along with an investment check payable
to American Century Investments
* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500. If your redemption activity
causes the value of your account to fall below this account minimum, your
shares may be redeemed involuntarily.
Tax-Free Money Market Fund Profile
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 Tax-Free Money Market
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?
Dividends are declared and available for redemption daily. 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 account access and transactions
You will find more information about these choices in Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
--------------------------------------------------------------------------------
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
1-800-345-3533
Visit our Web site at WWW.AMERICANCENTURY.COM [graphic of arrow]
SH-PRF-22232 0010 American Century Investment Services, Inc., Distributor
[front cover]
American Century
Fund Profile
[photo of woman sitting on bench, photo of hand holding pencil]
Tax-Free Money Market 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.
You may obtain the Prospectus and other information about the fund at no cost
by calling us at 1-888-345-2071, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
October 27, 2000
Investor Class
[american century brokerage logo (reg. sm) and text logo]
American
Century
_________
Brokerage
_________
TAX-FREE MONEY MARKET FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Tax-Free Money Market 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 cash-equivalent, high-quality debt securities with
interest 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 cash-equivalent, high-quality debt securities
with interest payments exempt from regular federal income tax, but are not
exempt from 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.
Additional information about Tax-Free Money Market'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?
* 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. Although the fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
the fund.
* Because cash-equivalent securities are among the safest securities
available, the interest they pay is among the lowest for interest-paying
securities. Accordingly, the yield on this fund will likely be lower than
funds that invest in longer-term or lower-quality securities.
* 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. Tax-Free Money Market may
have a higher level of risk than funds that invest in a larger universe of
securities.
FUND PERFORMANCE
The following bar chart shows the actual performance of Tax-Free Money
Market'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.
[data shown in bar chart]
Calendar Year-By-Year Returns(1)(2)
1999 2.97%
1998 3.47%
1997 3.43%
1996 2.98%
1995 3.36%
1994 2.31%
1993 1.90%
1992 2.47%
1991 4.21%
1990 5.60%
(1) From August 1, 1997 to December 31, 1998, all or a portion of the
fund's management fee was waived. As a result, the fund's returns
are higher than they would have been had the waiver not been in
effect.
(2) As of September 30, 2000, the end of the most recent calendar
quarter, Tax-Free Money Market's year-to-date return was 2.79%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
------- ------
Tax-Free Money Market 1.45% (4Q 1990) 0.44% (1Q 1994)
The following table shows the average annual total returns of the fund's
shares for the periods indicated. The Lipper Tax-Exempt Money Market
Average, 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.
Tax-Free Money Market American Century Investments
1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)(2)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 2000)
Tax-Free
Money Market 3.63% 3.30% 3.13% 3.89%
Lipper Tax-Exempt
Money Market
Average 3.33% 3.03% 3.01% 3.64%(3)
(1) The inception date for Tax-Free Money Market is July 31, 1984.
(2) From August 1, 1997 to December 31, 1998, all or a portion of the
fund's management fee was waived. As a result, the fund's returns
are higher than they would have been had the waiver not been in
effect.
(3) Since August 31, 1984, the date closest to the fund's inception for
which data are available.
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 funds
* to redeem your shares
The following table describes the fees and expenses 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 0.49%(1)
Distribution and Service (12b-1) Fees None
Other Expenses 0.01%(2)
Total Annual Fund Operating Expenses 0.50%
(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 and their legal counsel, as well as interest.
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
$51 $160 $279 $627
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. Identified below is the portfolio
manager who leads the team that manages Tax-Free Money Market:
BRYAN E. KARCHER, Vice President and Portfolio Manager, has been a member of
the Tax-Free Money Market team since June 1995. He joined American Century
in July 1989 and has been a Portfolio Manager since June 1995. He has a
bachelor's degree in economics from the University of California- Los
Angeles. He is a Chartered Financial Analyst.
6. HOW DO I BUY FUND SHARES?
American Century Brokerage offers several ways to purchase shares
* Complete and return a brokerage application along with an investment check
payable to American Century Brokerage
* If you already have an American Century Brokerage account, simply contact
us by writing, calling or accessing our Web site
* Call us and send your investment by bank wire transfer
Your initial investment in your brokerage account must be at least $2,500.
If your redemption activity causes the value of your account to fall below
this account minimum, your shares may be redeemed involuntarily.
Tax-Free Money Market Fund Profile
7. HOW DO I SELL FUND SHARES?
The most convenient way for you to sell money market fund shares in your
brokerage account is to use our CheckWriting feature. If you do not have
checks, you can call us during business hours or send us a letter requesting
a redemption check or bank wire. Bank wires require a minimum redemption of
$1,000 and a $20 fee applies. In addition, we will automatically sell
sufficient shares in Tax-Free Money Market when you direct us to make other
investments in your brokerage account.
Depending on the options you select when you open your account, some
restrictions may apply. For your protection, some redemption requests may
require a signature guarantee.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Dividends are declared and available for redemption daily. 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 Brokerage offers several ways to make it easier for you to
manage your account, such as
* telephone transactions
* wire and electronic funds transfers
* TeleSelect Automated Information and Trading Line transactions
* 24-hour online account access and transactions
You will find more information about these choices in our Brokerage
Information Kit, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.
--------------------------------------------------------------------------------
AMERICAN CENTURY BROKERAGE, INC.
P.O. BOX 419146
KANSAS CITY, MISSOURI 64141-6146
BROKERAGE CLIENT RELATIONS ASSOCIATE
1-888-345-2071
FAX
650-967-9627
TELESELECT AUTOMATED INFORMATION
AND TRADING LINE
1-888-345-2091
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113
SEP-IRA SERVICES
1-800-345-3533, ext. 4210
Visit our Web site at WWW.AMERICANCENTURY.COM [graphic of arrow]
BK-PRF-22279 0010 American Century Investment Services, Inc., Distributor
[front cover]
American Century
Fund Profile
[photo of woman sitting on bench, photo of hand holding pencil]
Florida Municipal Money Market 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.
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.
October 27, 2000
Investor Class
[american century logo (reg. sm) and text logo]
American
Century
FLORIDA MUNICIPAL MONEY MARKET FUND
1. WHAT ARE THE FUND'S INVESTMENT OBJECTIVES?
Florida Municipal Money Market 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 cash-equivalent, high-quality debt securities with
interest 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 cash-equivalent, high-quality debt securities
with interest payments exempt from federal income tax and from the Florida
intangible personal property tax, but are not exempt from 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.
Additional information about Florida Municipal Money Market'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?
* 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. Although the fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
the fund.
* Because cash-equivalent securities are among the safest securities
available, the interest they pay is among the lowest for income-paying
securities. Accordingly, the yield on this fund will likely be lower than
funds that invest in longer-term or lower-quality securities.
* 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 Municipal
Money Market may have a higher level of risk than funds that invest in a
larger universe of securities.
FUND PERFORMANCE
The following bar chart shows the actual performance of Florida Municipal
Money Market's shares for each full 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.
[data shown in bar chart]
Calendar Year-By-Year Returns(1)
1999 2.94%
1998 3.13%
1997 3.39%
1996 3.67%
1995 4.07%
(1) As of September 30, 2000, the end of the most recent calendar
quarter, Florida's Municipal Money Market's year-to-date return
was 2.78%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
------- ------
Florida Municipal Money Market 1.06% (2Q 1995) 0.63% (1Q 1999)
The following table shows the average annual total returns of the fund's
shares for the periods indicated. The Lipper Other States Tax-Exempt Money
Market Funds, 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.
Florida Municipal Money Market American Century Investments
1 YEAR 5 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 2000)
Florida Municipal Money Market 3.63% 3.38% 3.45%
Lipper Other States
Tax-Exempt Money Market Funds 3.45% 3.14% 3.19%(2)
(1) The inception date for Florida Municipal Money Market is April 11,
1994.
(2) Since April 30, 1994, the date closest to the fund's inception for
which data are available.
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 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 0.49%(1)
Distribution and Service (12b-1) Fees None
Other Expenses 0.01%(2)
Total Annual Fund Operating Expenses 0.50%
(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 and their legal counsel, as well as interest.
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
$51 $160 $279 $627
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. Identified below is the portfolio
manager who leads the team that manages Florida Municipal Money Market:
BRYAN E. KARCHER, Vice President and Portfolio Manager, has been a member of
the Florida Municipal Money Market team since June 1995. He joined American
Century in July 1989 and has been a Portfolio Manager since June 1995. He
has a bachelor's degree in economics from the University of California-Los
Angeles. He is a Chartered Financial Analyst.
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return an application along with an investment check payable
to American Century Investments
* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500. 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 Municipal Money
Market 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.
Florida Municipal Money Market Fund Profile
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Dividends are declared and available for redemption daily. Distributions
will generally be exempt from federal income tax and the Florida intangible
personal property 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 account access and transactions
You will find more information about these choices in Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
--------------------------------------------------------------------------------
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
1-800-345-3533
Visit our Web site at WWW.AMERICANCENTURY.COM [graphic of arrow]
SH-PRF-22233 0010 American Century Investment Services, Inc., Distributor
[front cover]
American Century
Fund Profile
[photo of woman sitting on bench, photo of hand holding pencil]
High-Yield 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.
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.
October 27, 2000
Investor Class
[american century logo (reg. sm) and text logo]
American
Century
HIGH-YIELD MUNICIPAL FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
High-Yield Municipal seeks high current income that is exempt from federal
income tax. Capital appreciation is a secondary objective.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers buy long- and intermediate-term debt securities with
interest 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 long- and intermediate-term debt securities
with interest payments exempt from regular federal income tax, but are not
exempt from 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.
The fund managers buy securities that are rated below investment grade,
including so-called junk bonds. Issuers of these securities often have short
financial histories or have questionable credit or have had and may continue
to have problems making interest and principal payments.
The fund managers also may buy unrated securities if they determine such
securities meet the investment objective of the fund.
Although High-Yield Municipal invests primarily for income, it also employs
techniques designed to realize capital appreciation. For example, the fund
managers may select bonds with maturities and coupon rates that position the
fund for potential capital appreciation for a variety of reasons, including
their view on the direction of future interest-rate movements and the
potential for a credit upgrade.
In the event of exceptional market or economic conditions, the fund may, as
a temporary defensive measure, invest all or a substantial portion of its
assets in cash or cash-equivalent securities. If a fund assumes a defensive
position, it will not be pursing its investment objectives and may generate
taxable income.
The fund managers attempt to keep the weighted average maturity of the fund
at 10 years or longer.
Additional information about High-Yield 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 is
higher for High-Yield Municipal than for funds that have shorter weighted
average maturities, such as short-term and intermediate-term funds.
* The fund's investments often have high credit risk, which helps it pursue
a higher yield than more conservatively managed bond funds. Issuers of
high-yield securities are more vulnerable to real or perceived economic
changes (such as an economic downturn or a prolonged period of rising
interest rates), political changes or adverse developments specific to the
issuer. Adverse economic, political and other developments may be more
likely to cause an issuer of low-quality bonds to default on its obligation
to pay interest and principal due under its securities.
* The fund may invest part of its assets in securities rated below
investment grade or that are unrated, including bonds that are in technical
or monetary default. By definition, the issuers of many of these securities
have had and may continue to have problems making interest and principal
payments.
* The market for lower-quality debt securities is generally less liquid than
the market for higher-quality securities. Adverse publicity and investor
perceptions, as well as new and proposed laws, also may have a greater
negative impact on the market for lower-quality securities.
* Some or all of the fund's income may be subject to the federal alternative
minimum tax.
High-Yield Municipal American Century Investments
* Because the fund invests primarily in municipal securities, it will be
sensitive to events that affect municipal markets. High-Yield 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 may be worth
more or less than the price you paid. As a result, it is possible to lose
money by investing in the fund.
* 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, High-Yield Municipal is intended for investors who seek 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 High-Yield
Municipal's shares for each full calendar year since the fund's inception on
March 31, 1998. 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.
[data shown in bar chart]
Calendar Year-By-Year Returns(1)(2)
1999 -2.03
(1) From March 31, 1998 to October 31, 1999, all or a portion of the
fund's management fee was waived. As a result, the fund's returns
are higher than they would have been had the waiver not been in
effect.
(2) As of September 30, 2000, the end of the most recent calendar
quarter, High-Yield Municipal's year-to-date return was 5.21%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
------- ------
High-Yield Municipal 2.69% (3Q 2000) -1.34% (3Q 1999)
The following table shows the average annual total returns 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 LIFE OF FUND(1)(2)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 2000)
High-Yield Municipal 4.23% 3.84%
Lehman Long-Term
Municipal Bond Index 6.79% 3.14%
(1) The inception date for High-Yield Municipal is March 31, 1998.
(2) From March 31, 1998 to October 31, 1999, all or a portion of the
fund's management fee was waived. As a result, the fund's returns
are higher than they would have been had the waiver not been in
effect.
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 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 0.64%(1)
Distribution and Service (12b-1) Fees None
Other Expenses 0.01%(2)
Total Annual Fund Operating Expenses 0.65%(3)
(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 and their legal counsel, as well as interest.
(3) The advisor waived all expenses of High-Yield Municipal through
April 30, 1999. The advisor waived a portion of the expenses from
May 1, 1999 through October 31, 1999. The fee is shown without the
effect of the fee waiver.
High-Yield Municipal Fund Profile
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
$66 $208 $362 $809
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. Identified below is the portfolio
manager who leads the team that manages High-Yield Municipal:
STEVEN M. PERMUT, Vice President, Director of Municipal Research and
Portfolio Manager, has been a member of the High-Yield Municipal team since
its inception in March 1998. He joined American Century in June 1987. He has
bachelor's degrees in business and geography from State University of New
York - Oneonta and an MBA in finance from Golden Gate University - San
Francisco.
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return an application along with an investment check payable
to American Century Investments
* If you already have an American Century account, call us or access our Web
site to 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 High-Yield 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?
High-Yield Municipal pays distributions of substantially all of its income
monthly. Distributions will generally be exempt from 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 account access and transactions
You will find more information about these choices in Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
--------------------------------------------------------------------------------
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
1-800-345-3533
Visit our Web site at WWW.AMERICANCENTURY.COM [graphic of arrow]
SH-PRF-22234 0010 American Century Investment Services, Inc., Distributor
[front cover]
AMERICAN CENTURY
Fund Profile
[photo of woman sitting on bench, photo of hand holding pencil]
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.
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.
October 27, 2000
Investor Class
[american century logo (reg. sm) and text logo]
American
Century
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 intermediate-term, quality 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 intermediate-term, quality debt securities
with interest payments exempt from federal and Arizona income taxes, but are
not exempt from 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 objectives.
In the event of exceptional market or economic conditions, the fund may, as
a temporary defensive measure, invest all or a substantial portion of its
assets in cash or cash-equivalent securities. If the fund assumes a
defensive position, it will not be pursuing its investment objectives and
may generate taxable income.
The fund managers attempt to keep the weighted average maturity of the fund
between five and 10 years.
Additional information about Arizona Intermediate-Term Municipal's
investments is available in its annual and semi-annual 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 usually
decline. The opposite is usually true when interest rates decline. The
interest rate risk for Arizona 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 (for example, Baa or BBB). The issuers of these securities are
more likely to pose a credit risk, that is, 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, your shares may be worth more or less at any given
time than the price you paid for them. As a result, it is possible to
lose money by investing in the fund.
* 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.
FUND PERFORMANCE
The following bar chart shows the actual performance of Arizona
Intermediate-Term Municipal's shares for each full 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.
Arizona Intermediate-Term Municipal American Century Investments
[data shown in bar chart]
Calendar Year-By-Year Returns(1)
1999 1998 1997 1996 1995
Arizona Intermediate-Term Municipal -0.94% 5.90% 6.90% 3.74% 13.15%
(1) As of September 30, 2000, the end of the most recent calendar
quarter, Arizona Intermediate-Term Municipal's year-to-date return
was 5.80%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
---------------------------------------------------------------------------
Arizona Intermediate-
Term Municipal 4.60% (1Q 1995) -1.63% (2Q 1999)
The following table shows the average annual total 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 5 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 2000)
Arizona Intermediate-Term
Municipal 5.73% 4.79% 5.58%
Lehman 5-Year General
Obligation Index 4.79% 4.85% 5.48%(2)
(1) The inception date of Arizona Intermediate-Term Municipal is April
11, 1994.
(2) Since March 31, 1994, the date closest to the fund's inception for
which data are available.
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
funds
* to redeem your shares
The following table describes the fees and expenses 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 0.50%(1)
Distribution and Service (12b-1) Fees None
Other Expenses 0.01%(2)
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 include the fees and expenses of the fund's
independent trustees and their legal counsel, as well as interest.
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. Identified below is the portfolio
manager who leads the team that manages Arizona Intermediate-Term
Municipal:
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. He is a Chartered Financial Analyst.
Arizona Intermediate-Term Municipal Fund Profile
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return an application along with an investment check payable
to American Century Investments
* If you already have an American Century account, call us or access our
Web site to 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 account access and transactions
You will find more information about these choices in Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
--------------------------------------------------------------------------------
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
1-800-345-3533
Visit our Web site at WWW.AMERICANCENTURY.COM
SH-PRF-22250 0010 American Century Investment Services, Inc., Distributor
[front cover]
AMERICAN CENTURY
Fund Profile
[photo of woman sitting on bench, photo of hand holding pencil]
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.
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.
October 27, 2000
Investor Class
[american century logo (reg. sm) and text logo]
American
Century
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 intermediate-term, quality debt securities with
interest 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 intermediate-term, quality debt securities
with interest payments exempt from federal income tax and which are exempt
from the Florida intangible personal property tax, but are not necessarily
exempt from 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 objectives.
In the event of exceptional market or economic conditions, the fund may, as
a temporary defensive measure, invest all or a substantial portion of its
assets in cash or cash-equivalent securities. If the fund assumes a
defensive position, it will not be pursuing its investment objectives and
may generate taxable income.
The fund managers attempt to keep the weighted average maturity of the fund
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. When
interest rates rise, the fund's share value will usually decline. The
opposite is usually 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 (for example, Baa or BBB). The issuers of these securities are
more likely to pose a credit risk, that is, 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, your shares may be worth more or less at any given
time than the price you paid for them. As a result, it is possible to
lose money by investing in the fund.
* 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.
FUND PERFORMANCE
The following bar chart shows the actual performance of Florida
Intermediate-Term Municipal's shares for each full 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.
Florida Intermediate-Term Municipal American Century Investments
[data shown in bar chart]
Calendar Year-By-Year Returns(1)
1999 1998 1997 1996 1995
Florida Intermediate-Term Municipal -0.59% 6.49% 8.22% 3.66% 13.49%
(1) As of September 30, 2000, the end of the most recent calendar
quarter, Florida Intermediate-Term Municipal's year-to-date return
was 5.69%.
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) -1.63% (2Q 1999)
The following table shows the average annual total 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 5 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 2000)
Florida Intermediate-Term
Municipal 5.82% 5.24% 5.81%
Lehman 5-Year General
Obligation Index 4.79% 4.85% 5.48%(2)
(1) The inception date of Florida Intermediate-Term Municipal is April
11, 1994.
(2) Since March 31, 1994, the date closest to the fund's inception for
which data are available.
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
funds
* to redeem your shares
The following table describes the fees and expenses 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 0.50%(1)
Distribution and Service (12b-1) Fees None
Other Expenses 0.01%(2)
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 include the fees and expenses of the fund's
independent trustees and their legal counsel, as well as interest.
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. Identified below is the portfolio
manager who leads the team that manages Florida Intermediate-Term
Municipal:
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. He is a Chartered Financial
Analyst.
Florida Intermediate-Term Municipal Fund Profile
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return an application along with an investment check payable
to American Century Investments
* If you already have an American Century account, call us or access our
Web site to 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 account access and transactions
You will find more information about these choices in Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
--------------------------------------------------------------------------------
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
1-800-345-3533
Visit our Web site at WWW.AMERICANCENTURY.COM
SH-PRF-22251 0010 American Century Investment Services, Inc., Distributor
[front cover]
AMERICAN CENTURY
Fund Profile
[photo of woman sitting on bench, photo of hand holding pencil]
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.
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.
October 27, 2000
Investor Class
[american century logo (reg. sm) and text logo]
American
Century
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 intermediate-term, quality debt securities with
interest 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 intermediate-term, quality debt securities
with interest payments exempt from regular federal income tax, but are not
exempt from 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.
In the event of exceptional market or economic conditions, the fund may, as
a temporary defensive measure, invest all or a substantial portion of its
assets in cash or cash-equivalent securities. If a fund assumes a defensive
position, it will not be pursuing its investment objectives and may generate
taxable income.
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 (for example, Baa or BBB). The issuers of these securities are
more likely to pose a credit risk, that is, 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, your shares may be worth more or less at any given
time than the price you paid for them. As a result, it is possible to
lose money by investing in the fund.
* 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.
Intermediate-Term Tax-Free American Century Investments
[data shown in bar chart]
Calendar Year-By-Year Returns(1)
1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
Intermediate-Term
Tax-Free -0.95% 5.81% 7.44% 3.94% 11.93% -2.06% 9.07% 7.17% 10.05% 6.28%
(1) As of September 30, 2000, the end of the most recent calendar
quarter, Intermediate-Term Tax-Free's year-to-date return was
6.00%.
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 total returns 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 SEPTEMBER 30, 2000)
Intermediate-Term
Tax-Free 6.01% 4.95% 6.07% 5.65%
Lehman 5-Year
GO Index 4.79% 4.85% 6.27% 5.93%(2)
(1) The inception date for Intermediate-Term Tax-Free is March 2, 1987.
(2) Since February 28, 1987, the date closest to the fund's inception
for which data are available.
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
funds
* to redeem your shares
The following table describes the fees and expenses 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 0.01%(2)
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 and their legal counsel, as well as interest.
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.
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. Identified below is the portfolio
manager who leads the team that manages Intermediate-Term Tax-Free:
KENNETH SALINGER, Portfolio Manager, has been a member of the team that
manages Intermediate-Term Tax-Free since June 1999. He joined American
Century in April 1992. He has a bachelor's degree in quantitative economics
from the University of California-San Diego. He is a Chartered Financial
Analyst.
Intermediate-Term Tax-Free Fund Profile
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return an application along with an investment check payable
to American Century Investments
* If you already have an American Century account, call us or access our
Web site to 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 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 account access and transactions
You will find more information about these choices in Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
--------------------------------------------------------------------------------
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
1-800-345-3533
Visit our Web site at WWW.AMERICANCENTURY.COM
SH-PRF-22252 0010 American Century Investment Services, Inc., Distributor
[front cover]
AMERICAN CENTURY
Fund Profile
[photo of woman sitting on bench, photo of hand holding pencil]
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.
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.
October 27, 2000
Investor Class
[american century logo (reg. sm) and text logo]
American
Century
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 long-term, quality debt securities with interest
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 long-term, quality debt securities with
interest payments exempt from regular federal income tax, but are not exempt
from 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.
In the event of exceptional market or economic conditions, the fund may, as
a temporary defensive measure, invest all or a substantial portion of its
assets in cash or cash-equivalent securities. If a fund assumes a defensive
position, it will not be pursuing its investment objectives and may generate
taxable income.
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 (for example, Baa or BBB). The issuers of these securities are
more likely to pose a credit risk, that it, 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, your shares may be worth more or less at any given
time than the price you paid for them. As a result, it is possible to
lose money by investing in the fund.
* 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.
Long-Term Tax-Free American Century Investments
[data shown in bar chart]
Calendar Year-By-Year Returns(1)
1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
Long-Term
Tax-Free -4.99% 5.94% 9.59% 3.08% 18.50% -5.58% 12.15% 7.61% 12.01% 6.15%
(1) As of September 30, 2000, the end of the most recent calendar
quarter, Long-Term Tax-Free's year-to-date return was 7.53%.
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 total returns 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 SEPTEMBER 30, 2000)
Long-Term Tax Free 6.45% 5.29% 6.88% 6.45%
Lehman Long-Term
Municipal Bond
Index 6.79% 6.27% 7.95% 7.55%(2)
(1) The inception date for Long-Term Tax-Free is March 2, 1987.
(2) Since February 28, 1987, the date closest to the fund's inception
for which data are available.
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
funds
* to redeem your shares
The following table describes the fees and expenses 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 0.01%(2)
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 and their legal counsel, as well as interest.
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.
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. Identified below is the portfolio
manager who leads the team that manages Long-Term Tax-Free:
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.
Long-Term Tax-Free Fund Profile
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return an application along with an investment check payable
to American Century Investments
* If you already have an American Century account, call us or access our
Web site to 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 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 account access and transactions
You will find more information about these choices in Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
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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
1-800-345-3533
Visit our Web site at WWW.AMERICANCENTURY.COM
SH-PRF-22253 0010 American Century Investment Services, Inc., Distributor