[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg. sm)]
AMERICAN
CENTURY
Capital Preservation 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
thefund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[photos of woman and girls blowing bubbles, men talking, 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.
CAPITAL PRESERVATION FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Capital Preservation is a money market fund that seeks maximum safety and
liquidity, and to pay shareholders the highest rate of return consistent
with this objective.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund manager buys very short-term U.S. Treasury securities that are
guaranteed by the direct full faith and credit pledge of the U.S.
government.
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 Capital Preservation'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 very short-term 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.
FUND PERFORMANCE
The following bar chart shows the actual performance of Capital
Preservation'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.
[data shown in bar chart]
Calendar Year-By-Year Returns (1)
1998 4.92%
1997 4.97%
1996 4.85%
1995 5.32%
1994 3.63%
1993 2.65%
1992 3.31%
1991 5.62%
1990 7.64%
1989 8.28%
(1) As of March 31, 1999, the end of the most recent calendar quarter,
Capital Preservation's year-to-date return was 1.04%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
Capital Preservation 2.12% (2Q 1989) 0.63% (2Q 1993)
The following table shows the average annual return of the fund's Investor
Class shares for the periods indicated. The 90-Day Treasury Bill 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)
Capital Preservation 4.72% 4.82% 5.00% 5.30%
90-Day Treasury
Bill Index 4.72% 5.09% 5.21% 7.04%(2)
(1) The inception date for Capital Preservation is October 13, 1972.
(2) Benchmark from October 31, 1972.
Capital Preservation American Century Investments
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 0.48%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.48%
(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.
(2) Other expenses, which include the fees and expenses of the fund's
independent trustees, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$49 $154 $269 $604
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 Capital Preservation is identified as follows:
DENISE TABACCO, Portfolio Manager, has been a member of the team that
manages Capital Preservation since 1995. She joined American Century in
1988, becoming a member of its portfolio department in 1991. She was
promoted to Portfolio Manager in 1995. She has a bachelor's degree in
accounting from San Diego University and an MBA in finance from Golden Gate
University.
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 IRA
and Roth IRA accounts). 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 Capital Preservation 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. Because Capital
Preservation is a money market fund, its distributions generally will be
taxed as ordinary income. If the fund's share price were to go up or down,
its annual distributions also could include capital gains or losses.
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.
Fund Profile Capital Preservation
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-16108 9904 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg. sm)]
AMERICAN
CENTURY
Government Agency 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
thefund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[photos of woman and girls blowing bubbles, men talking, 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.
GOVERNMENT AGENCY MONEY MARKET FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Government Agency Money Market seeks to pay the highest rate of return while
maintaining liquidity and safety of principal. The fund invests exclusively
in short-term obligations of the U.S. government, its agencies and
instrumentalities. The fund seeks to purchase only those securities with
income that will be exempt from state income tax.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund manager buys very short-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 manager also may buy very short-term U.S. Treasury securities that
are guaranteed by the direct full faith and credit pledge of the U.S.
government.
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 Government Agency 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 very short-term 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.
FUND PERFORMANCE
The following bar chart shows the actual performance of Government Agency
Money Market's Investor Class shares for each year since the fund's
inception on December 5, 1989. 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)
1998 5.07%
1997 5.07%
1996 4.93%
1995 5.50%
1994 3.75%
1993 2.68%
1992 3.39%
1991 6.01%
1990 8.34%
(1) As of March 31, 1999, the end of the most recent calendar quarter,
Government Agency Money Market's year-to-date return was 1.10%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
Government Agency
Money Market 2.06% (1Q 1990) 0.65% (2Q 1993)
The following table shows the average annual return of the fund's Investor
Class shares for the periods indicated. The 90-Day Treasury Bill 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.
Government Agency Money Market American Century Investments
1 YEAR 5 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED MARCH 31, 1999)
Government Agency
Money Market 4.91% 4.95% 4.97%
90-Day Treasury Bill Index 4.72% 5.09% 4.97%(2)
(1) The inception date for Government Agency Money Market is December
15, 1989.
(2) Benchmark from December 31, 1989.
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 0.48%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.48%
(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.
(2) Other expenses, which include the fees and expenses of the fund's
independent trustees, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$49 $154 $268 $603
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 Government Agency Money Market is identified as follows:
DENISE TABACCO, Portfolio Manager, has been a member of the team that
manages Capital Preservation since 1995. She joined American Century in
1988, becoming a member of its portfolio department in 1991. She was
promoted to Portfolio Manager in 1995. She has a bachelor's degree in
accounting from San Diego University and an MBA in finance from Golden Gate
University.
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 IRA
and Roth IRA accounts). 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 Government Agency 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. Because
Government Agency Money Market is a money market fund, its distributions
generally will be taxed as ordinary income. If the fund's share price were
to go up or down, its annual distributions also could include capital gains
or losses. Distributions are reinvested automatically in additional shares
unless you choose another option.
Fund Profile Government Agency Money Market
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-16109 9904 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg. sm)]
AMERICAN
CENTURY
Short-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
thefund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[photos of woman and girls blowing bubbles, men talking, 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 TREASURY FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Short-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 short-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 short-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 13
months and three years.
Additional information about Short-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 Short-Term Treasury than for funds that have shorter weighted
average maturities, such as money market funds.
* As with all funds, at any given time the value of your shares of
Short-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, Short-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 Short-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.
[data shown in bar chart]
Calendar Year-By-Year Returns (1)
1998 6.44%
1997 6.11%
1996 4.12%
1995 9.93%
1994 0.15%
1993 5.32%
(1) As of March 31, 1999, the end of the most recent calendar quarter,
Short-Term Treasury's year-to-date return was 0.54%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
Short-Term Treasury 3.14% (1Q 1995) -0.54% (1Q 1994)
Short-Term Treasury American Century Investments
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. The fund's benchmark
was changed from the Lehman 1- to 3-Year Government Securities Index
beginning January 1, 1999. The fund's advisor believes the new index better
represents the broad market for U.S. Treasury and Agency Securities. 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)
Short-Term Treasury 5.60% 5.53% 4.96%
Lehman 1- to 3-Year
Government Securities Index 6.09% 6.19% 5.53%(2)
Salomon Brothers 1- to 3-Year
Treasury/Agency Index 6.10% 6.18% 5.52%(3)
(1) The inception date for Short-Term Treasury is September 8, 1992.
(2) Benchmark from September 30, 1992.
(3) Benchmark from January 1, 1999.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges
* to buy fund shares directly from American Century
* to reinvest dividends in additional shares
* to exchange into the Investor Class shares of other American Century fund
* to redeem your shares
The following table describes the fees and expenses that you will pay if you
buy and hold shares of the fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.51%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.51%
(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.
(2) Other expenses include the fees and expenses of the fund's
independent trustees, their legal counsel, interest and extraordinary
expenses are expected to be less than 0.005% for the current 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
$54 $170 $296 $665
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 Treasury is identified as follows:
NEWLIN RANKIN, Senior Portfolio Manager, has been a member of the team that
manages Short-Term Treasury since March 1996. 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 IRA
and Roth IRA accounts). 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 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 Short-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?
Short-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-16110 9904 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg. sm)]
AMERICAN
CENTURY
GNMA 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
thefund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[photos of woman and girls blowing bubbles, men talking, 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.
GNMA FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
GNMA seeks high current income while maintaining liquidity and safety of
principal by investing primarily in GNMA certificates.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers buy certificates issued by the Government National
Mortgage Association (GNMA). Unlike many other mortgage-backed securities,
the timely payment of principal and interest on GNMA certificates is backed
by the direct full faith and credit pledge of the U.S. government. This
means that the fund managers receive the fund's share of payments regardless
of whether the ultimate borrowers make their payments.
The fund managers also may 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 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.
Additional information about GNMA'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 GNMA than for funds that have shorter weighted average
maturities, such as money market funds.
* GNMA 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 GNMA, 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 GNMA 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, GNMA is intended for investors who seek high current income that
is consistent with investment in GNMA certificates 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 GNMA'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.
[data shown in bar chart]
Calendar Year-By-Year Returns (1)
1998 6.33%
1997 8.79%
1996 5.21%
1995 15.86%
1994 -1.67%
1993 6.59%
1992 7.67%
1991 15.56%
1990 10.15%
1989 13.90%
(1) As of March 31, 1999, the end of the most recent calendar quarter,
GNMA's year-to-date return was 0.82%.
GNMA American Century Investments
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
GNMA 7.68% (2Q 1989) -2.39% (1Q 1994)
The following table shows the average annual return of the fund's Investor
Class shares for the periods indicated. The Salomon Brothers 30-year GNMA
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)
GNMA 5.66% 7.45% 8.70% 8.60%
Salomon Brothers
30-Year GNMA Index 6.29% 8.01% 9.27% 9.48%(2)
(1) The inception date for GNMA is September 23, 1985.
(2) Benchmark from September 30, 1985.
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(2) 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 trustees, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$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 GNMA is identified as follows:
CASEY COLTON, Vice President and Senior Portfolio Manager, has been a member
of the team that manages GNMA since January 1994. He joined American Century
in 1990. He has a bachelor's degree in business administration from San Jose
State University and an MBA from the University of Southern California. He
is a Chartered Financial Analyst and a Certified Public Accountant.
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 IRA
and Roth IRA accounts). If your redemption activity causes the value of your
account to fall below this account minimum, your shares may be redeemed
involuntarily.
Fund Profile GNMA
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 GNMA 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?
GNMA 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
Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]
SH-PRF-16119 9904 Funds Distributor, Inc.
