[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg. sm)]
AMERICAN
CENTURY
Intermediate-Term Treasury Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[three photos of bubble blowing woman and child,
business men, woman at computer]
APRIL 25, 1999
INVESTOR CLASS
You may obtain the Prospectus and other information about the fund at no cost
by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
INTERMEDIATE-TERM TREASURY FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Intermediate-Term Treasury seeks the highest level of current income exempt
from state income tax while maintaining safety of capital.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers buy intermediate-term U.S. Treasury securities guaranteed
by the direct full faith and credit pledge of the U.S. government.
The fund managers also may buy intermediate-term securities issued by the
U.S. government, its agencies and instrumentalities. The U.S. government
provides varying levels of financial support to these agencies and
instrumentalities. The fund managers may invest up to 35% of the fund's
total assets in these securities.
The fund managers may purchase securities in a number of different ways to
seek higher rates of return. For example, by using when-issued and forward
commitment transactions, the fund managers may purchase securities in
advance to generate additional income.
The weighted average maturity of the fund is expected to be between three
and 10 years.
Additional information about Intermediate-Term Treasury'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 Treasury than for funds that have shorter
weighted average maturities, such as money market and short-term bond funds.
* As with all funds, at any given time the value of your shares of
Intermediate-Term Treasury may be worth more or less than the price you
paid. If you sell your shares when the value is less than the price you
paid, you will lose money.
* An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.
In summary, Intermediate-Term Treasury is intended for investors who seek
the highest level of current income exempt from state income tax while
maintaining safety of capital 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
Treasury's Investor Class shares for each of the last 10 calendar years. The
bar chart indicates the volatility of the fund's historical returns from
year to year. The bar chart and the performance information below are not
intended to indicate how the fund will perform in the future.
[bar chart]
Calendar Year-By-Year Returns (1)
1998 8.94%
1997 8.38%
1996 4.08%
1995 13.70%
1994 -2.34%
1993 7.91%
1992 6.55%
1991 13.75%
1990 9.20%
1989 11.93%
(1) As of March 31, 1999, the end of the most recent calendar quarter,
Intermediate-Term Treasury's year-to-date return was -1.23%.
Intermediate-Term Treasury American Century Investments
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
---------------------------------------------------------------------------
Intermediate-Term
Treasury 6.67% (2Q 1989) -2.04% (1Q 1994)
The following table shows the average annual return of the fund's Investor
Class shares for the periods indicated. The Salomon Brothers 3- to 10-Year
Treasury Index, an unmanaged index that reflects no operating costs, is
included as a benchmark for performance comparisons. For current performance
information, including yields, please call us or access our Web site.
1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)
---------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED MARCH 31, 1999)
---------------------------------------------------------------------------
Intermediate-Term
Treasury 6.09% 6.59% 7.88% 8.66%
Salomon Brothers
3- to 10-Year
Treasury Index 7.10% 7.26% 8.41% 9.67%(2)
(1) The inception date for Intermediate-Term Treasury is May 16, 1980.
(2) Benchmark from May 31, 1980.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges
* to buy fund shares directly from American Century
* to reinvest dividends in additional shares
* to exchange into the Investor Class shares of other American Century fund
* to redeem your shares
The following table describes the fees and expenses that you will pay if you
buy and hold shares of the fund.
---------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
---------------------------------------------------------------------------
Management Fee 0.51%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.51%
(1) Based on expenses incurred during the fund's most recent fiscal year.
The fund has a stepped fee schedule. As a result, the management fee
rate generally decreases as fund assets increase.
(2) Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
---------------------------------------------------------------------------
$52 $164 $285 $640
Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment advisory
and management services for the fund. American Century uses teams of
portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio manager who leads the
team that manages Intermediate-Term Treasury is identified as follows:
ROBERT GAHAGAN, Vice President and Portfolio Manager, has been a member of
the team that manages Intermediate-Term Treasury since January 1998. He
joined American Century in 1983. He has a bachelor's degree in economics and
an MBA from the University of Missouri, Kansas City.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional IRAs
and Roth IRAs). If your redemption activity causes the value of your account
to fall below this account minimum, your shares may be redeemed
involuntarily.
Fund Profile Intermediate-Term Treasury
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
Treasury 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 Treasury pays distributions of substantially all of its
income monthly. Distributions may be taxable as ordinary income, capital
gains or a combination of the two. Capital gains are taxed at different
rates depending on the length of time the fund held the securities that were
sold. Distributions are reinvested automatically in additional shares unless
you choose another option.
Distributions will generally be exempt from most state income taxes. Consult
your tax advisor to see if the fund's income is exempt in your state.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in our Investor Services
Guide, which you may request by calling us, accessing our Web site or
visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call
a Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo(reg. sm)]
AMERICAN
CENTURY
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]
SH-PRF-16124 9904 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg. sm)]
AMERICAN
CENTURY
Long-Term Treasury Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[three photos of bubble blowing woman and child,
business men, woman at computer]
APRIL 25, 1999
INVESTOR CLASS
You may obtain the Prospectus and other information about the fund at no cost
by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
LONG-TERM TREASURY FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Long-Term Treasury seeks the highest level of current income exempt from
state income tax.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers buy long-term U.S. Treasury securities guaranteed by the
direct full faith and credit pledge of the U.S. government.
The fund managers also may buy intermediate-term securities issued by the
U.S. government, its agencies and instrumentalities. The U.S. government
provides varying levels of financial support to these agencies and
instrumentalities. The fund managers may invest up to 35% of the fund's
total assets in agency securities.
The fund managers may purchase securities in a number of different ways to
seek higher rates of return. For example, by using when-issued and forward
commitment transactions, the fund managers may purchase securities in
advance to generate additional income.
The weighted average maturity of the fund is expected to be between 20 and
30 years.
Additional information about Long-Term Treasury'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 Treasury than for funds that have shorter weighted
average maturities, such as money market, short-term and intermediate-term
bond funds.
* As with all funds, at any given time the value of your shares of Long-Term
Treasury may be worth more or less than the price you paid. If you sell your
shares when the value is less than the price you paid, you will lose money.
* An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.
In summary, Long-Term Treasury is intended for investors who seek the
highest level of current income exempt from state income tax 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 Treasury's
Investor Class shares for each calendar year since the fund's inception on
September 8, 1992. The bar chart indicates the volatility of the fund's
historical returns from year to year. The bar chart and the performance
information below are not intended to indicate how the fund will perform in
the future.
[bar chart]
Calendar Year-By-Year Returns (1)
1998 12.76%
1997 14.76%
1996 -1.36%
1995 29.25%
1994 -9.25%
1993 17.64
(1) As of March 31, 1999, the end of the most recent calendar quarter,
Long-Term Treasury's year-to-date return was -4.18%.
Long-Term Treasury American Century Investments
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
---------------------------------------------------------------------------
Long-Term Treasury 10.48% (2Q 1995) -7.00% (1Q 1996)
The following table shows the average annual return of the fund's Investor
Class shares for the periods indicated. The Salomon Long-Term
Treasury/Agency 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 MARCH 31, 1999)
---------------------------------------------------------------------------
Long-Term Treasury 6.33% 9.03% 8.30%
Salomon Long-Term
Treasury & Agency Index 6.92% 9.80% 9.27%(2)
(1) The inception date for Long-Term Treasury is September 8, 1992.
(2) Benchmark from September 30, 1992.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges
* to buy fund shares directly from American Century
* to reinvest dividends in additional shares
* to exchange into the Investor Class shares of other American Century fund
* to redeem your shares
The following table describes the fees and expenses that you will pay if you
buy and hold shares of the fund.
---------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
---------------------------------------------------------------------------
Management Fee 0.51%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.01%
Total Annual Fund Operating Expenses 0.52%
(1) Based on expenses incurred during the fund's not recent fiscal year.
The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.
(2) Other expenses include the fees and expenses of the fund's
independent trustees, their legal counsel, interest and extraordinary
expenses.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
---------------------------------------------------------------------------
$53 $167 $291 $653
Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment advisory
and management services for the fund. American Century uses teams of
portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio manager who leads the
team that manages Long-Term Treasury is identified as follows:
DAVID SCHROEDER, Vice President and Senior Portfolio Manager, has been a
member of the team that manages Long-Term Treasury since September 1992. He
joined American Century in 1990. He has a bachelor of arts from Pomona
College.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional IRAs
and Roth IRAs). If your redemption activity causes the value of your account
to fall below this account minimum, your shares may be redeemed
involuntarily.
Fund Profile Long-Term Treasury
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 Treasury 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 Treasury pays distributions of substantially all of its income
monthly. Distributions may be taxable as ordinary income, capital gains or a
combination of the two. Capital gains are taxed at different rates depending
on the length of time the fund held the securities that were sold.
Distributions are reinvested automatically in additional shares unless you
choose another option.
Distributions will generally be exempt from most state income taxes. Consult
your tax advisor to see if the fund's income is exempt in your state.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in our Investor Services
Guide, which you may request by calling us, accessing our Web site or
visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call
a Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo(reg. sm)]
AMERICAN
CENTURY
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]
SH-PRF-16125 9904 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg. sm)]
AMERICAN
CENTURY
Short-Term Government Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[three photos of bubble blowing woman and child,
business men, woman at computer]
APRIL 25, 1999
INVESTOR CLASS
You may obtain the Prospectus and other information about the fund at no cost
by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
SHORT-TERM GOVERNMENT FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Short-Term Government seeks high current income while maintaining safety of
principal.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers buy short-term securities issued by the U.S. government,
its agencies and instrumentalities, including mortgage-backed securities.
The U.S. government provides varying levels of financial support to these
agencies and instrumentalities. The fund managers also may buy short-term
U.S. Treasury securities guaranteed by the direct full faith and credit
pledge of the U.S. government.
The fund managers may purchase securities in a number of different ways to
seek higher rates of return. For example, by using when-issued and forward
commitment transactions, the fund managers may purchase securities in
advance to generate additional income.
The weighted average maturity of the fund is expected to be three years or
less.
Additional information about Short-Term Government'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 Short-Term Government than for funds that have shorter weighted
average maturities, such as money market funds.
* Short-Term Government invests in mortgage-backed securities. When
homeowners refinance their mortgages to take advantage of declining interest
rates, their existing mortgages are prepaid. The mortgages, which back the
securities purchased by Short-Term Government, may be prepaid in this
fashion. Because of this "prepayment risk," the fund may benefit less from
declining interest rates than other short-term funds.
* As with all funds, at any given time the value of your shares of
Short-Term Government may be worth more or less than the price you paid. If
you sell your shares when the value is less than the price you paid, you
will lose money.
* An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.
In summary, Short-Term Government is intended for investors who seek high
current income that is consistent with investment in securities issued by
the U.S. government and its agencies 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 Short-Term
Government's Investor Class shares for each of the last 10 calendar years.
The bar chart indicates the volatility of the fund's historical returns from
year to year. The bar chart and the performance information below are not
intended to indicate how the fund will perform in the future.
[bar chart]
Calendar Year-By-Year Returns (1)
1998 6.04%
1997 6.02%
1996 4.11%
1995 10.51%
1994 -0.49%
1993 4.17%
1992 4.39%
1991 11.64%
1990 7.53%
1989 9.99%
(1) As of March 31, 1999, the end of the most recent calendar quarter,
Short-Term Government's year-to-date return was 0.49%.
Short-Term Government American Century Investments
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
---------------------------------------------------------------------------
Short-Term Government 5.13% (2Q 1989) -1.03% (1Q 1994)
The following table shows the average annual return of the fund's Investor
Class shares for the periods indicated. The Salomon Brothers 1- to 3-Year
Treasury/Agency Index, an unmanaged index that reflects no operating costs,
is included as a benchmark for performance comparisons. For current
performance information, including yields, please call us or access our Web
site.
1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)
---------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED MARCH 31, 1999)
---------------------------------------------------------------------------
Short-Term
Government 5.39% 5.50% 6.28% 7.08%
Salomon Brothers
1- to 3-Year
Treasury/Agency
Index 6.10% 6.18% 7.27% 8.16%(2)
(1) The inception date for Short-Term Government is December 15, 1982.
(2) Benchmark from December 31, 1982.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges
* to buy fund shares directly from American Century
* to reinvest dividends in additional shares
* to exchange into the Investor Class shares of other American Century fund
* to redeem your shares
The following table describes the fees and expenses that you will pay if you
buy and hold shares of the fund.
---------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
---------------------------------------------------------------------------
Management Fee 0.59%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(1) 0.00%
Total Annual Fund Operating Expenses 0.59%
(1) Based on expenses incurred during the fund's most recent fiscal year.
The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.
(2) Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
---------------------------------------------------------------------------
$60 $189 $329 $738
Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment advisory
and management services for the fund. American Century uses teams of
portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio manager who leads the
team that manages Short-Term Government is identified as follows:
NEWLIN RANKIN, Senior Portfolio Manager, has been a member of the team that
manages Short-Term Government since January 1995. He joined American Century
in 1994. He has a bachelor's degree in decision science and an MBA in
international finance from the University of San Francisco.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional IRAs
and Roth IRAs). If your redemption activity causes the value of your account
to fall below this account minimum, your shares may be redeemed
involuntarily.
Fund Profile Short-Term Government
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 Short-Term Government
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?
Short-Term Government pays distributions of substantially all of its income
monthly. Distributions may be taxable as ordinary income, capital gains, or
a combination of the two. Capital gains are taxed at different rates
depending on the length of time the fund held the securities that were sold.
Distributions are reinvested automatically in additional shares unless you
choose another option.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in our Investor Services
Guide, which you may request by calling us, accessing our Web site or
visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call
a Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo(reg. sm)]
AMERICAN
CENTURY
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
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[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg. sm)]
AMERICAN
CENTURY
Inflation-Adjusted Treasury Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[three photos of bubble blowing woman and child,
business men, woman at computer]
APRIL 25, 1999
INVESTOR CLASS
You may obtain the Prospectus and other information about the fund at no cost
by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
INFLATION-ADJUSTED TREASURY FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Inflation-Adjusted Treasury seeks total return consistent with investment in
U.S. Treasury inflation-adjusted securities.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund manager buys inflation-indexed U.S. Treasury securities guaranteed
primarily by the direct full faith and credit pledge of the U.S. government.
These inflation-indexed securities are designed to protect the future
purchasing power of the money invested in them.
The fund manager also may buy U.S. Treasury securities that are not
inflation-indexed.
The fund manager may purchase securities in a number of different ways to
seek higher rates of return. For example, by using when-issued and forward
commitment transactions, the fund manager may purchase securities in advance
to generate additional income.
Additional information about Inflation-Adjusted Treasury'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?
* Inflation-adjusted securities are sold based upon an assumption about real
interest rates. "Real" interest rates are the market rate of interest minus
the anticipated rate of inflation. 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 real interest rate risk is higher for Inflation-Adjusted
Treasury than for funds that do not invest in inflation-indexed securities.
* As with all funds, at any given time the value of your shares of
Inflation-Adjusted Treasury may be worth more or less than the price you
paid. If you sell your shares when the value is less than the price you
paid, you will lose money.
* An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.
In summary, Inflation-Adjusted Treasury is intended for investors who seek
total return that is consistent with investment in U.S. Treasury
inflation-indexed securities 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 Inflation-Adjusted
Treasury's Investor Class shares for each calendar year since the fund's
inception on February 10, 1997. The bar chart indicates the volatility of
the fund's historical returns from year to year. The bar chart and the
performance information below are not intended to indicate how the fund will
perform in the future.
[bar chart]
Calendar Year-By-Year Returns (1)
1998 3.45%
(1) As of March 31, 1999, the end of the most recent calendar quarter,
Inflation-Adjusted Treasury's year-to-date return was 0.31%
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
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Inflation-Adjusted Treasury 2.27% (3Q 1998) -0.37 (4Q 1998)
The following table shows the average annual return of the fund's Investor
Class shares for the periods indicated. The Salomon Brothers Treasury Index
and the Salomon Brothers U.S. Inflation-Linked Index are unmanaged indices
that reflect no operating costs and are included as a benchmark for
performance comparisons. For current performance information, including
yields, please call us or access our Web site.
Inflation-Adjusted Treasury American Century Investments
1 YEAR LIFE OF FUND(1)
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AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED MARCH 31, 1999)
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Inflation-Adjusted Treasury 3.37% 2.23%
Salomon Brothers U.S.
Inflation-Linked Index 4.10% 3.17%(2)
Salomon Brothers Treasury Index 7.09% 11.74%(3)
(1) The inception date for Inflation-Adjusted Treasury is February 10,
1997.
(2) Benchmark from February 28, 1997.
(3) Benchmark from February 28, 1997.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges
* to buy fund shares directly from American Century
* to reinvest dividends in additional shares
* to exchange into the Investor Class shares of other American Century fund
* to redeem your shares
The following table describes the fees and expenses that you will pay if you
buy and hold shares of the fund.
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ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
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Management Fee 0.51%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.13%
Total Annual Fund Operating Expenses 0.64%
(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.
(2) Other expenses include the fees and expenses of the fund's
independent trustees, their legal counsel, interest and
extraordinary expenses.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
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$65 $205 $357 $798
Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment advisory
and management services for the fund. American Century uses teams of
portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio manager who leads the
team that manages Inflation-Adjusted Treasury is identified as follows:
DAVID SCHROEDER, Vice President and Senior Portfolio Manager, has been a
member of the team that manages Inflation-Adjusted Treasury since its
inception in February 1997. He joined American Century in 1990. He has a
bachelor of arts from Pomona College.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional IRAs
and Roth IRAs). If your redemption activity causes the value of your account
to fall below this account minimum, your shares may be redeemed
involuntarily.
Fund Profile Inflation-Adjusted Treasury
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 Inflation-Adjusted
Treasury 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?
Inflation-Adjusted Treasury pays distributions of substantially all of its
income, including "imputed income," monthly. Distributions may be taxable as
ordinary income, capital gains or a combination of the two. Capital gains
are taxed at different rates depending on the length of time the fund held
the securities that were sold. Distributions are reinvested automatically in
additional shares unless you choose another option.
Distributions will generally be exempt from most state income taxes. Consult
your tax advisor to see if the fund's income is exempt in your state.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in our Investor Services
Guide, which you may request by calling us, accessing our Web site or
visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call
a Service Representative at 1-800-345-3533.
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[american century logo(reg. sm)]
AMERICAN
CENTURY
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]
SH-PRF-16127 9904 Funds Distributor, Inc.