[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
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.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
July 26, 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?
* Interest rate changes affect the fund's share value. 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 June 30, 1999, the end of the most recent calendar quarter,
Short-Term Treasury's year-to-date return was 0.57%.
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 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 JUNE 30, 1999)
---------------------------------------------------------
Short-Term Treasury 4.15% 5.54% 4.78%
Lehman 1- to 3-Year
Government Securities Index 5.04% 6.30% 5.40%(2)
Salomon 1- to 3-Year
Treasury/Agency Index 5.09% 6.29% 5.40%(2)
(1) The inception date for Short-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) 0.00%
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 and interest, 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
$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 Short-Term Treasury:
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?
American Century offers several ways to purchase shares
* Complete and return the enclosed 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 ($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.
Short-Term Treasury 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 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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the 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
SH-PRF-16965 9907 Funds Distributor, Inc.
<PAGE>
[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.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
July 26, 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.
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?
* Interest rate changes affect the fund's share value. 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.
[data shown in 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 June 30, 1999, the end of the most recent calendar quarter,
Intermediate-Term Treasury's year-to-date return was -2.43%.
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 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 JUNE 30, 1999)
---------------------------------------------------------
Intermediate-Term
Treasury 2.71% 6.49% 7.06% 8.48%
Salomon 3- to 10-Year
Treasury Index 3.90% 7.18% 7.62% 9.49%(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 and interest, were 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
$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. Identified below is the portfolio
manager who leads the team that manages Intermediate-Term Treasury:
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?
American Century offers several ways to purchase shares
* Complete and return the enclosed 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 ($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.
Intermediate-Term Treasury 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 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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the 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
SH-PRF-16978 9907 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.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
July 26, 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 while maintaining safety of capital.
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 10 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?
* Interest rate changes affect the fund's share value. 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.
[data shown in 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 June 30, 1999, the end of the most recent calendar quarter,
Long-Term Treasury's year-to-date return was -6.46%.
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 JUNE 30, 1999)
---------------------------------------------------------
Long-Term Treasury -0.48% 9.27% 7.61%
Salomon Long-Term
Treasury/Agency Index -0.58% 9.80% 8.47%(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) 0.00%
Total Annual Fund Operating Expenses 0.51%
(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.
(2) Other expenses, which include the fees and expenses of the fund's
independent trustees, their legal counsel and interest, 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
$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 Long-Term Treasury:
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?
American Century offers several ways to purchase shares
* Complete and return the enclosed 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 ($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.
Long-Term Treasury 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 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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the 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
SH-PRF-16979 9907 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
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.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
July 26, 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 managers buy 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 managers 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 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 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 June 30, 1999, the end of the most recent calendar quarter,
Government Agency Money Market's year-to-date return was 2.21%.
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 JUNE 30, 1999)
---------------------------------------------------------
Government Agency
Money Market 4.74% 5.00% 4.96%
90-Day Treasury Bill Index 4.58% 5.11% 4.95%(2)
(1) The inception date for Government Agency Money Market is December 5,
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 0.47%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.47%
(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 and interest, 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
$48 $151 $263 $591
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 that manage Government Agency Money Market:
BETH BUNNELL HUNTER, Portfolio Manager, has been a member of the team that
manages Government Agency Money Market since joining American Century in
July 1999. Before joining American Century, she worked for Calvert Asset
Management Company as a Portfolio Trading Analyst from 1994 to 1996 and as a
Portfolio Manager from 1996 to June 1999. She has a bachelor of arts from
the University of Washington-Seattle.
DENISE TABACCO, Portfolio Manager, has been a member of the team that
manages Government Agency Money Market since May 1996. 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?
American Century offers several ways to purchase shares
* Complete and return the enclosed 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 ($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.
Government Agency Money Market Fund Profile
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.
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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the 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
SH-PRF-16964 9907 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.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
July 26, 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?
* Interest rate changes affect the fund's share value. 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.
[data shown in 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 June 30, 1999, the end of the most recent calendar quarter,
Short-Term Government's year-to-date return was -0.04%.
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 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 JUNE 30, 1999)
---------------------------------------------------------
Short-Term
Government 3.13% 5.44% 5.69% 6.93%
Salomon 1- to 3-Year
Treasury/Agency
Index 5.09% 6.29% 6.82% 8.07%(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(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 directors, their legal counsel and interest, 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
$60 $189 $329 $736
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 Short-Term Government:
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?
American Century offers several ways to purchase shares
* Complete and return the enclosed 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 ($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.
Short-Term Government 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 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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the 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
SH-PRF-16980 9907 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
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.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
July 26, 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 primarily buy certificates issued by the Government
National Mortgage Association (GNMA). Unlike many other mortgage-backed
securities, the timely payment of principal and interest on these
certificates is guaranteed by GNMA. GNMA's payment guarantee is stronger
than most other government agencies' because it is backed by the full faith
and credit 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 may also buy short-term U.S. government securities. The
U.S. government, its agencies and instrumentalities issue these securities.
These securities include mortgage-backed securities. The U.S. government's
financial support of these agencies and instrumentalities varies.
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 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 June 30, 1999, the end of the most recent calendar quarter,
GNMA's year-to-date return was -0.02%.
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 JUNE 30, 1999)
---------------------------------------------------------
GNMA 3.12% 7.36% 7.81% 8.37%
Salomon Brothers
30-Year GNMA Index 4.14% 8.04% 8.37% 9.27%(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 and interest, 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
$60 $189 $329 $736
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 GNMA:
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?
American Century offers several ways to purchase shares
* Complete and return the enclosed 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 ($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.
GNMA 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 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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the 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
SH-PRF-16973 9907 Funds Distributor, Inc.
<PAGE>
[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.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
July 26, 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 and inflation protection
consistent with investment in U.S. Treasury inflation-adjusted securities.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers buy 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 managers also may buy traditional U.S. Treasury securities that are
not inflation-indexed. The fund managers also may buy inflation-indexed
securities issued by U.S. government agencies and government-sponsored
organizations.
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 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-indexed securities are designed to offer a return linked to
inflation, which protects future purchasing power from effects of inflation.
Inflation-indexed securities may not trade at their face value.
Inflation-indexed securities trade at prevailing real, or after inflation,
interest rates. Changes in real interest rates affect the fund's share
value.
* 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.
[data shown in bar chart]
Calendar Year-By-Year Returns (1)
1998 3.45%
(1) As of June 30, 1999, the end of the most recent calendar quarter,
Inflation-Adjusted Treasury's year-to-date return was 1.52%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
------- ------
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 10+ Years Treasury Index
and the Salomon 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)
------ ---------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 1999)
---------------------------------------------------------
Inflation-Adjusted Treasury 3.45% 2.51%
Salomon U.S. Inflation-Linked Index 4.15% 3.40%(2)
Salomon 10+ Years Treasury Index -0.28% 9.22%(2)
(1) The inception date for Inflation-Adjusted Treasury is February 10,
1997.
(2) 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.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
---------------------------------------------
Management Fee 0.51%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.51%
(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.
(2) Other expenses, which include the fees and expenses of the fund's
independent trustees, their legal counsel and interest, 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
$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 Inflation-Adjusted Treasury:
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?
American Century offers several ways to purchase shares
* Complete and return the enclosed 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 ($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.
Inflation-Adjusted Treasury 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 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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the 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
SH-PRF-16981 9907 Funds Distributor, Inc.
<PAGE>
[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
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.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
July 26, 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 managers 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 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 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 June 30, 1999, the end of the most recent calendar quarter,
Capital Preservation's year-to-date return was 2.08%.
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 JUNE 30, 1999)
---------------------------------------------------------
Capital Preservation 4.52% 4.86% 4.89% 5.29%
90-Day Treasury
Bill Index 4.58% 5.11% 5.11% 7.02%(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 0.47%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.47%
(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 and interest, 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
$48 $151 $263 $591
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 that manage Capital Preservation:
BETH BUNNELL HUNTER, Portfolio Manager, has been a member of the team that
manages the Capital Preservation Fund since joining American Century in July
1999. Before joining American Century, she worked for Calvert Asset
Management company as a Portfolio Trading Analyst from 1994 to 1996 and as a
Portfolio Manager from 1996 to June 1999. She has a bachelor of arts from
the University of Washington-Seattle.
DENISE TABACCO, Portfolio Manager, has been a member of the team that
manages Capital Preservation since May 1996. 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?
American Century offers several ways to purchase shares
* Complete and return the enclosed 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 ($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.
Capital Preservation 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 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.
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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the 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
SH-PRF-16963 9907 Funds Distributor, Inc.
