AMERICAN CENTURY VARIABLE PORTFOLIOS INC, N-30D, 1997-08-14

AMERICAN CENTURY VARIABLE PORTFOLIOS INC
N-30D, 1997-08-14

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SEMIANNUAL REPORT

[american century logo]
American
Century(sm)

JUNE 30, 1997

AMERICAN CENTURY
VARIABLE
PORTFOLIOS, INC.

VP Value

[front cover]

TABLE OF CONTENTS

Our Message to You..................................................... 1
Performance & Portfolio Information.................................... 2
Management Q & A....................................................... 3
Schedule of Investments................................................ 5
Statement of Assets and Liabilities.................................... 7
Statement of Operations................................................ 8
Statements of Changes in Net Assets.................................... 9
Notes to Financial Statements.......................................... 10
Financial Highlights................................................... 12
Background Information
Investment Philosophy and Policies................................ 16
Comparative Indices............................................... 16
Fund Management Team Leaders...................................... 16
Glossary............................................................... 17

We welcome your comments or questions about this report.
See the back cover for ways to contact us by mail, phone or e-mail.

Twentieth Century and the Benham Group are registered marks of American Century
Services Corporation and Benham Management Corporation, respectively. American
Century is a service mark of American Century Services Corporation.

American Century Investments

OUR MESSAGE TO YOU

[photo of James E. Stowers, Jr. and James E. Stowers III]

The six months ended June 30, 1997, were rewarding for investors in
American Century VP Value Fund, formerly TCI Value. In the Management Q&A that
follows, the investment team discusses the fund's performance and strategy
during the period.

To enhance our conservative equity offerings, we are pleased to announce
that we plan to add VP Income & Growth in September. This fund will use
quantitative management strategies to pursue its investment objectives --
dividend growth, current income and capital appreciation. VP Income & Growth is
designed to be a core holding for annuity investors seeking a fund that uses a
risk-adjusted investment approach to provide returns representative of the
overall performance of the U.S. stock market.

In addition to building our fund family, we have also been strengthening
our corporate team. In June, Bill Lyons, American Century's chief operating
officer, became president, assuming full responsibility for the company's
day-to-day operations. This change will enable us to spend more time developing
and refining new investment technologies that build on the proprietary system we
pioneered 25 years ago. One of our goals is to ensure that we continue to evolve
and innovate -- building the investment tools today that will lead us and our
investors to success in the next century.

In July, American Century agreed to enter into a business partnership with
J.P. Morgan & Co., one of the strongest and most respected firms in the
financial services industry. J.P. Morgan will become a significant minority
owner of American Century Companies, Inc., the parent corporation of the
investment manager of American Century mutual funds. Through this partnership,
we see many opportunities to expand the range of investment choices and services
we offer. A global financial services firm, J.P. Morgan has been in business for
more than 150 years, serving institutions, governments and individuals with
complex financial needs.

Within the framework of this new relationship American Century will
continue to operate as an independent company. No changes in your fund's
portfolio managers, investment policies, fees or expenses are anticipated as a
result of this transaction. American Century's corporate management team remains
the same, and the Stowers family will retain voting control of the company.

In closing, we want to reassure you that American Century remains committed
to serving your investment needs first and foremost. Thank you for your trust
and confidence.

Sincerely,

/s/James E. Stowers, Jr. /s/James E. Stowers III
James E. Stowers, Jr. James E. Stowers III
Chairman of the Board and Founder Chief Executive Officer

Semiannual Report Our Message to You 1

<TABLE>
<CAPTION>
PERFORMANCE & PORTFOLIO INFORMATION

6 MONTHS(1) 1 YEAR LIFE OF FUND(2)

TOTAL RETURNS AS OF JUNE 30, 1997

<S> <C> <C> <C>
VP VALUE................................. 13.35% 23.86% 23.01%
S&P 500.................................. 20.61% 34.69% 32.49%
S&P 500/BARRA Value Index................ 16.49% 30.89% 27.06%

(1) Not annualized.
(2) Average annual return. The fund's inception date was 5/1/96.

See pages 16 and 17 for more information about comparative indices and returns.
</TABLE>

[line graph - data below]

GROWTH OF $10,000 OVER LIFE OF FUND

$10,000 investment made 5/1/96

Value on 6/30/97

S&P 500 $13,876
S&P 500 BARRA Value Index $13,223
VP Value $12,727

S&P 500 BARRA
S & P 500 VALUE INDEX VP VALUE
ACCT ACCT ACCT
DATE VALUE VALUE VALUE

5/01/96 $10,000.00 $10,000.00 $10,000.00
5/31/96 $10,222.00 $10,151.00 $10,120.00
6/30/96 $10,302.00 $10,102.00 $10,275.00
7/31/96 $ 9,831.00 $ 9,676.00 $ 9,673.00
8/31/96 $10,016.00 $ 9,943.00 $ 9,974.00
9/30/96 $10,619.00 $10,369.00 $10,323.00
10/31/96 $10,897.00 $10,720.00 $10,484.00
11/30/96 $11,696.00 $11,540.00 $11,148.00
12/31/96 $11,505.00 $11,351.00 $11,228.00
1/31/97 $12,208.00 $11,874.00 $11,363.00
2/28/97 $12,280.00 $11,961.00 $11,544.00
3/31/97 $11,816.00 $11,552.00 $11,256.00
4/30/97 $12,502.00 $11,985.00 $11,460.00
5/31/97 $13,236.00 $12,737.00 $12,216.00
6/30/97 $13,876.00 $13,223.00 $12,727.00

Past performance does not guarantee future results. Investment return and
principal value will fluctuate, and redemption value may be more or less than
original cost.

The line representing the fund's return includes operating expenses (such as
transaction costs and management fees) that reduce returns, while the return
lines of the indices do not.

PORTFOLIO AT A GLANCE

6/30/97 12/31/96

Number of Companies 71 78
Price/Earnings Ratio 26.5 15.0
Portfolio Turnover 39%(1) 49%(2)

(1) Six months ended 6/30/97.
(2) Period ended 12/31/96.

See Glossary on page 17 for investment terms.

2 Performance & Portfolio Information American Century Investments

MANAGEMENT Q & A

An interview with Phil Davidson and Peter Zuger, portfolio managers on the
VP Value investment team.

HOW DID THE FUND PERFORM FOR THE SIX MONTHS ENDING JUNE 30, 1997?

VP Value performed solidly, returning 13.35%, but lagged its benchmark and
the U.S. stock market in general. The fund's benchmark, the S&P 500/BARRA Value
Index, posted a total return of 16.49%, while the S&P 500 returned 20.61%. For
the 12 months ended June 30, 1997, VP Value was up 23.86%, compared to the S&P
500/BARRA Value's 30.89% return and the 34.69% return posted by the S&P 500.

VP Value seeks superior risk-adjusted returns, and it is managed to be less
volatile than the market overall. That means that it may underperform during
strong rallies (such as those that characterized much of the period covered by
this report) and outperform during sharp declines. True to its nature, VP Value
did not keep pace with the market during the second quarter, but it dropped
significantly less than the market during the correction lasting from February
to mid-April.

WHAT EXPLAINS THE FUND'S RELATIVE PERFORMANCE AGAINST ITS BENCHMARK?

The most significant factor was VP Value's weighting in electric utilities,
which represented approximately 10% of the portfolio, compared to the S&P
500/BARRA Value index's approximately 4.95% weighting at the end of the period.
The electric utility sector underperformed the market against a backdrop of
fluctuating interest rates and investor concern over recent regulatory changes
that could increase competition. However, we continue to hold several utility
stocks that fit our requirements for stability, higher quality and attractive
valuation. One such holding is Union Electric. Its share price has declined due
to market concerns over interest rates and industry consolidation, but by our
measures the company has excellent fundamentals and future appreciation
potential.

WHAT EXPLAINS THE FUND'S RELATIVE PERFORMANCE AGAINST THE S&P 500?

During much of the period, the market generally favored
large-capitalization, steady-growth-oriented companies, such as those found in
the S&P 500 and, more specifically, the S&P 500/BARRA Growth Index. This index,
which reflects the performance of those S&P 500 companies with higher
price-to-book ratios, gained 24.58% for the period, far surpassing the return
posted by the S&P 500/BARRA Value Index. Most of these large-capitalization
companies were outside VP Value's valuation parameters. Currently, we are
finding what we think are the best opportunities in the medium-capitalization
range.

WHAT INVESTMENTS CONTRIBUTED POSITIVELY TO THE FUND'S PERFORMANCE?

Good stock selection across several industries played a key role in the
fund's performance. Our best-performing stock was CSX Corporation, a railroad.
CSX and a competitor, Norfolk Southern, jointly acquired Conrail in the first
quarter at terms that were advantageous to CSX. This bodes particularly well for
the fund, as we had bought CSX early in the acquisition negotiations when
investor uncertainty caused the stock to be favorably priced.

Another factor that contributed significantly to the fund's return was our
sizable investment in chemical companies. Our holdings included Petrolite, a
specialty chemical company that announced its buyout by Baker Hughes in the
first quarter, and Lubrizol Corporation, a manufacturer of lubrication
additives, which benefited from both modest improvement in the industry and a
more focused capital expenditure program. We also saw a nice recovery in
Millenium Chemical, a commodity-based chemical producer whose stock had been
depressed due to poor pricing in some of the company's key products.

Semiannual Report Management Q & A 3

MANAGEMENT Q & A

WHAT SIGNIFICANT CHANGES DID YOU MAKE TO THE PORTFOLIO?

While we maintained positions in some electric utilities, we eliminated our
holdings of AT&T, a telephone utility, early in the year when we became
concerned about the company's fundamental outlook. We also trimmed our holdings
somewhat in chemical and resin stocks due to favorable pricing.

On the buy side, we began re-establishing positions in energy stocks late
in the period, as energy prices softened and valuations became attractive,
especially in middle-cap oil and gas producers. We bought several
well-positioned companies in the automobile and auto parts sector, such as
Cooper Tire and Echlin Inc., which have performed well and remain attractive. We
also increased our positions in retail grocery store and general merchandise
stocks, which were historically inexpensive and for which expectations were low
based on slower near-term growth.

WHAT IS YOUR OUTLOOK FOR THE FUND?

Although the markets overall are richly valued, we are still able to fill
the portfolio with what we believe are attractively valued companies,
particularly in the mid-cap range. Our emphasis continues to be on individual
stock selection. Rather than focus on the market in general or on specific
sectors or themes, we concentrate on fundamentals --the issuing company's
business potential, its valuation and its dividend-paying ability -- in our
effort to provide investors with attractive returns and lower risk consistent
with conservative equity funds.

TOP TEN HOLDINGS % of fund investments

As of As of
6/30/97 12/31/96

Giant Food Inc. Cl A 4.1% 4.3%
Mallinckrodt Inc. 2.5% --
Florida Progress Corp. 2.5% 0.7%
Dillard Department
Stores, Inc. Cl A 2.4% 2.8%
Great Lakes Chemical Corp. 2.4% 2.5%
Superior Industries
International, Inc. 2.3% 1.6%
Archer-Daniels-Midland Co. 2.3% 1.6%
Albertson's, Inc. 2.3% 1.2%
Litton Industries, Inc. 2.2% --
Nalco Chemical Co. 2.1% 1.0%

TOP FIVE INDUSTRIES % of fund investments

As of As of
6/30/97 12/31/96

Utilities 10.0% 6.5%
Chemicals & Resins 8.7% 12.2%
Food & Beverage 8.4% 5.8%
Energy (Production
& Marketing) 7.9% 6.6%
Retail (Food & Drug) 7.8% 5.9%

4 Management Q & A American Century Investments

SCHEDULE OF INVESTMENTS

JUNE 30, 1997 (UNAUDITED)

Shares Value
- -----------------------------------------------------------------------------

COMMON STOCKS

AEROSPACE & DEFENSE--2.2%
42,800 Litton Industries, Inc.(1) $ 2,067,775
--------------

AUTOMOBILES & AUTO PARTS--5.4%
60,400 Cooper Tire and Rubber Company 1,328,800
41,700 Echlin Inc. 1,501,200
82,400 Superior Industries International, Inc. 2,183,600
--------------
5,013,600
--------------

BANKING--3.7%
26,100 First Virginia Banks, Inc. 1,574,156
31,100 Mercantile Bancorporation Inc. 1,889,325
--------------
3,463,481
--------------

BUILDING & HOME IMPROVEMENTS--0.1%
7,400 Juno Lighting, Inc. 119,325
--------------

BUSINESS SERVICES & SUPPLIES--1.3%
79,500 Reynolds & Reynolds Co. 1,252,125
--------------

CHEMICALS & RESINS--8.7%
13,400 Albemarle Corp. 282,238
9,000 Dow Chemical Co. 784,125
41,800 Great Lakes Chemical Corp. 2,189,275
26,700 Lubrizol Corp. 1,119,731
80,400 Millennium Chemicals Inc. 1,829,100
50,100 Nalco Chemical Co. 1,935,112
--------------
8,139,581
--------------

COMMUNICATIONS SERVICES--1.9%
86,400 Frontier Corp. 1,722,600
--------------

COMPUTER SOFTWARE & SERVICES--0.4%
12,500 GTECH Holdings Corp.(1) 403,125
--------------

CONTROL & MEASUREMENT--0.2%
9,100 Elsag Bailey Process Automation N.V.(1) 167,212
--------------

ELECTRICAL & ELECTRONIC
COMPONENTS--2.1%
46,300 AMP, Inc. 1,933,025
--------------

ENERGY (PRODUCTION & MARKETING)--7.9%
19,400 Amoco Corp. 1,686,588
18,400 Apache Corp. 598,000
9,200 Burlington Resources Inc. 405,950

Shares Value
- -----------------------------------------------------------------------------

45,900 MAPCO Inc. $ 1,445,850
31,000 Murphy Oil Corp. 1,511,250
100,000 Seagull Energy Corp.(1) 1,750,000
--------------
7,397,638
--------------

ENVIRONMENTAL SERVICES--3.2%
48,300 Browning-Ferris Industries, Inc. 1,605,975
4,000 Safety-Kleen Corp. 67,500
19,100 WMX Technologies, Inc. 613,588
44,200 Wheelabrator Technologies Inc. 682,338
--------------
2,969,401
--------------

FINANCIAL SERVICES--1.1%
19,000 Salomon Inc. 1,056,875
--------------

FOOD & BEVERAGE--8.4%
89,430 Archer-Daniels-Midland Co. 2,101,605
50,400 Hormel Foods Corp. 1,354,500
76,800 IBP, Inc. 1,785,600
47,800 Ralcorp Holdings, Inc.(1) 705,050
49,000 Universal Foods Corp. 1,868,125
--------------
7,814,880
--------------

HEALTHCARE--0.5%
13,300 Seafield Capital Corp. 472,150
--------------

INDUSTRIAL EQUIPMENT & MACHINERY--2.4%
28,100 Cooper Industries, Inc. 1,397,975
10,500 Gerber Scientific, Inc. 207,375
10,900 Tecumseh Products Cl A 653,319
--------------
2,258,669
--------------

INSURANCE--3.1%
22,600 Argonaut Group, Inc. 672,350
17,100 CNA Financial Corp.(1) 1,802,981
7,900 NAC Re Corp. 382,163
--------------
2,857,494
--------------

METALS & MINING--1.3%
23,800 Ashland Coal, Inc. 678,300
6,900 Reynolds Metals Co. 491,625
--------------
1,169,925
--------------

PAPER & FOREST PRODUCTS--4.7%
29,700 Chesapeake Corp. 1,002,375
27,000 Rayonier, Inc. 1,135,687

See Notes to Financial Statements

Semiannual Report Schedule of Investments 5

SCHEDULE OF INVESTMENTS

JUNE 30, 1997 (UNAUDITED)

Shares Value
- -----------------------------------------------------------------------------

23,900 Union Camp Corp. $ 1,195,000
34,600 Westvaco Corp. 1,087,738
--------------
4,420,800
--------------

PHARMACEUTICALS--3.1%
16,200 Allergan, Inc. 515,363
62,500 Mallinckrodt Inc. 2,375,000
--------------
2,890,363
--------------

PRINTING & PUBLISHING--2.6%
45,200 Banta Corp. 1,231,700
39,925 McClatchy Newspapers, Inc. 1,172,797
--------------
2,404,497
--------------

RAILROADS--2.0%
33,200 CSX Corp. 1,842,600
--------------

RESTAURANTS--0.5%
30,000 Brinker International, Inc.(1) 427,500
--------------

RETAIL (FOOD & DRUG)--7.8%
57,500 Albertson's, Inc. 2,098,750
80,300 Food Lion, Inc. Cl A 575,902
118,100 Giant Food Inc. Cl A(2) 3,853,012
20,200 Hannaford Brothers Co. 718,363
--------------
7,246,027
--------------

RETAIL (GENERAL MERCHANDISE)--5.5%
65,700 Dillard Department Stores, Inc. Cl A(2) 2,274,862
18,600 May Department Stores Co. (The) 878,850
17,800 Mercantile Stores Co., Inc. 1,120,288
16,200 Penney (J.C.) Company, Inc. 845,437
--------------
5,119,437
--------------

TEXTILES & APPAREL--0.5%
42,000 Shaw Industries, Inc. 446,250
--------------

TOBACCO--0.5%
16,500 UST Inc. 457,875
--------------

TRANSPORTATION--1.8%
38,400 XTRA Corp. 1,687,200
--------------

UTILITIES--10.0%
73,000 Florida Progress Corp. 2,285,812
31,500 Kansas City Power & Light Co. 899,719
59,100 New York State Electric & Gas Corp. 1,233,712
29,800 Potomac Electric Power Co. 689,125

Shares Value
- -----------------------------------------------------------------------------

45,000 Texas Utilities Electric Co. $ 1,549,687
23,000 Union Electric Co. 866,812
72,200 Wisconsin Energy Corp. 1,795,975
--------------
9,320,842
--------------

TOTAL COMMON STOCKS--92.9% 86,542,272
(Cost $81,146,513) --------------

TEMPORARY CASH INVESTMENTS
Repurchase Agreement, Goldman Sachs
& Co., Inc., (U.S. Treasury obligations),
in a joint trading account at 5.80%,
dated 6/30/97, due 7/1/97
(Delivery value $4,500,725) 4,500,000

Repurchase Agreement, Merrill Lynch & Co.,
Inc., (U.S. Treasury obligations), in a
joint trading account at 5.65%, dated
6/30/97, due 7/1/97 (Delivery value
$2,100,330) 2,100,000
--------------

TOTAL TEMPORARY CASH INVESTMENTS--7.1% 6,600,000
(Cost $6,600,000) --------------

TOTAL INVESTMENT SECURITIES--100.0% $ 93,142,272
(Cost $87,746,513) ==============

FUTURES CONTRACTS

Underlying
Expiration Face Amount Unrealized
Purchased Date at Value Gain (Loss)
- ------------------ ---------------- ------------- -------------
7 S&P 500 Futures September 1997 $3,115,875 $377,430
1 S&P 500 Future December 1997 449,950 (5,560)
------------- -------------
$3,565,825 $371,870
============= =============

NOTES TO SCHEDULE OF INVESTMENTS

(1) Non-income producing.
(2) Security, or a portion thereof, has been segregated at the custodian bank
for futures contracts.

See Notes to Financial Statements

6 Schedule of Investments American Century Investments

<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES

JUNE 30, 1997 (UNAUDITED)

ASSETS
<S> <C>
Investment securities, at value (identified cost of $87,746,513) (Note 3)............................ $ 93,142,272
Cash ................................................................................................ 1,467,735
Receivable for investments sold...................................................................... 632,363
Dividends and interest receivable.................................................................... 115,594
--------------
95,357,964
--------------

LIABILITIES

Payable for investments purchased.................................................................... 2,607,918
Payable for capital shares redeemed.................................................................. 342,730
Accrued management fees (Note 2)..................................................................... 68,763
Payable for variation on futures contracts (Note 1).................................................. 26,625
--------------
3,046,036
--------------
NET ASSETS APPLICABLE TO OUTSTANDING SHARES.......................................................... $ 92,311,928
==============

CAPITAL SHARES, $0.01 PAR VALUE

NET ASSET VALUE PER SHARE............................................................................ $ 6.23
==============

NET ASSETS CONSIST OF:

Capital (par value and paid-in surplus).............................................................. $ 82,719,431
Undistributed net investment income.................................................................. 320,281
Accumulated net realized gain from investments and foreign currency transactions..................... 3,504,587
Net unrealized appreciation on investments and translation of
assets and liabilities in foreign currencies (Note 3)........................................... 5,767,629
--------------
$ 92,311,928
==============

See Notes to Financial Statements
</TABLE>

Semiannual Report Statement of Assets and Liabilities 7

<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)

INVESTMENT INCOME
<S> <C>
INCOME:
Dividends (net of foreign taxes withheld of $3,035).................................................. $ 703,136
Interest............................................................................................. 103,377
--------------
806,513
--------------

EXPENSES (NOTE 2):
Management fees...................................................................................... 277,880
Directors' fees and expenses......................................................................... 351
--------------
278,231
--------------

NET INVESTMENT INCOME................................................................................ 528,282
--------------

REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FOREIGN CURRENCY (NOTE 3)

NET REALIZED GAIN ON:
Investments.......................................................................................... 3,524,561
Foreign currency transactions........................................................................ 8,033
--------------
3,532,594
--------------
CHANGE IN NET UNREALIZED APPRECIATION ON:
Investments.......................................................................................... 4,695,112
Translation of assets and liabilities in foreign currencies.......................................... 1,505
--------------
4,696,617
--------------

NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FOREIGN CURRENCY..................................................................... 8,229,211
--------------

NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............................................................................ $ 8,757,493
==============

See Notes to Financial Statements
</TABLE>

8 Statement of Operations American Century Investments

<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS

SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
AND PERIOD ENDED DECEMBER 31, 1996

INCREASE IN NET ASSETS 1997 1996(1)

OPERATIONS

<S> <C> <C>
Net investment income............................................................... $ 528,282 $ 122,872
Net realized gain on investments
and foreign currency transactions................................................ 3,532,594 434,897
Change in net unrealized appreciation on
investments and translation of assets
and liabilities in foreign currencies............................................ 4,696,617 1,071,012
------------ ------------
Net increase in net assets resulting from operations................................ 8,757,493 1,628,781
------------ ------------

DISTRIBUTIONS TO SHAREHOLDERS

From net investment income.......................................................... (292,815) (42,223)
From net realized gains from investment transactions................................ (458,739) --
------------ ------------
Decrease in net assets from distributions........................................... (751,554) (42,223)
------------ ------------

CAPITAL SHARE TRANSACTIONS

Proceeds from shares sold........................................................... 65,068,176 23,361,157
Proceeds from reinvestment of distributions......................................... 751,552 42,223
Payments for shares redeemed........................................................ (5,407,602) (1,096,075)
------------ ------------
Net increase in net assets from capital share transactions.......................... 60,412,126 22,307,305
------------ ------------

NET INCREASE IN NET ASSETS.......................................................... 68,418,065 23,893,863

NET ASSETS

Beginning of period................................................................. 23,893,863 --
------------ ------------
End of period....................................................................... $ 92,311,928 $ 23,893,863
============ ============

Undistributed net investment income................................................. $ 320,281 $ 84,814
============ ============
TRANSACTIONS IN SHARES OF THE FUND

Sold ............................................................................... 11,317,610 4,494,002
Issued in reinvestment of distributions............................................. 134,356 8,257
Redeemed............................................................................ (922,481) (223,494)
------------ ------------
Net increase........................................................................ 10,529,485 4,278,765
============ ============

(1) May 1, 1996 (inception) through December 31, 1996.

See Notes to Financial Statements
</TABLE>

Semiannual Report Statements of Changes in Net Assets 9

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1997 (UNAUDITED)

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION--American Century Variable Portfolios, Inc., formerly TCI
Portfolios, Inc., (the Corporation) is registered under the Investment Company
Act of 1940 as an open-end diversified management investment company. American
Century VP Value, formerly TCI Value, (the Fund) is one of the five series of
funds issued by the Corporation. The Fund's investment objective is long-term
capital growth. Income is a secondary objective. The Fund seeks to achieve its
investment objective by investing in securities management believes to be
undervalued at the time of purchase. The following significant accounting
policies, related to the Fund, are in accordance with accounting policies
generally accepted in the investment company industry.

SECURITY VALUATIONS--Portfolio securities traded primarily on a principal
securities exchange are valued at the last reported sales price, or the mean of
the latest bid and asked prices where no last sales price is available.
Securities traded over-the-counter are valued at the mean of the latest bid and
asked prices or, in the case of certain foreign securities, at the last reported
sales price, depending on local convention or regulation. Debt securities not
traded on a principal securities exchange are valued through valuations obtained
from a commercial pricing service or at the mean of the most recent bid and
asked prices. When valuations are not readily available, securities are valued
at fair value as determined in accordance with procedures adopted by the Board
of Directors.

SECURITY TRANSACTIONS--Security transactions are accounted for on the date
purchased or sold. Net realized gains and losses are determined on the
identified cost basis, which is also used for federal income tax purposes.

INVESTMENT INCOME--Dividend income less foreign taxes withheld (if any) is
recorded as of the ex-dividend date. Interest income is recorded on the accrual
basis and includes amortization of discounts and premiums.

FOREIGN CURRENCY TRANSACTIONS--The accounting records of the Fund are
maintained in U.S. dollars. All assets and liabilities initially expressed in
foreign currencies are converted into U.S. dollars at prevailing exchange rates.
Purchases and sales of investment securities, dividend and interest income, and
certain expenses are translated at the rates of exchange prevailing on the
respective dates of such transactions.

Net realized foreign currency exchange gains or losses arise from sales of
foreign currencies and the difference between asset and liability amounts
initially stated in foreign currencies and the U.S. dollar value of the amounts
actually received or paid. Net unrealized foreign currency exchange gains or
losses arise from changes in the value of assets and liabilities, other than
portfolio securities, resulting from changes in the exchange rates.

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS--The Fund may enter into
forward foreign currency exchange contracts for the purpose of settling specific
purchases or sales of securities denominated in a foreign currency or to hedge
the Fund's exposure to foreign currency exchange rate fluctuations. When
required, the Fund will segregate assets in an amount sufficient to cover its
obligations under the hedge contracts. The net U.S. dollar value of foreign
currency underlying all contractual commitments held by the Fund and the
resulting unrealized appreciation or depreciation are determined daily using
prevailing exchange rates. Forward contracts involve elements of risk in excess
of the amount reflected in the Statement of Assets and Liabilities. The Fund
bears the risk of an unfavorable change in the foreign currency exchange rate
underlying the forward contract. Additionally, losses may arise if the
counterparties do not perform under the contract terms. There were no open
forward foreign currency exchange contracts at June 30, 1997.

FUTURES CONTRACTS--The Fund may enter into stock index futures contracts in
order to manage the Fund's exposure to changes in market conditions. One of the
risks of entering into futures contracts includes the possibility that the
changes in value of the contract may not correlate with the changes in value of
the underlying securities. Upon entering into a futures contract, the Fund is
required to deposit either cash or securities in an amount equal to a certain
percentage of the contract value (initial margin). Subsequent payments
(variation margin) are made or received daily, in cash, by the Fund. The
variation margin is equal to the daily change in the contract value and is
recorded as an unrealized gain or loss. The Fund recognizes a realized gain or
loss when the contract is closed or expires. Net realized and unrealized gains
or losses occurring during the holding period of futures contracts are a
component of realized gain (loss) on investments and unrealized appreciation
(depreciation) on investments, respectively.

10 Notes to Financial Statements American Century Investments

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1997 (UNAUDITED)

requires that the securities purchased in a repurchase transaction be
transferred to the custodian in a manner sufficient to enable the Fund to obtain
those securities in the event of a default under the repurchase agreement. ACIM
monitors, on a daily basis, the value of the securities transferred to ensure
that the value, including accrued interest, of the securities under each
repurchase agreement is equal to or greater than amounts owed to the Fund under
each repurchase agreement.

JOINT TRADING ACCOUNT--Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other registered
investment companies having management agreements with ACIM, may transfer
uninvested cash balances into a joint trading account. These balances are
invested in one or more repurchase agreements that are collateralized by U.S.
Treasury or Agency obligations.

INCOME TAX STATUS--It is the policy of the Fund to distribute all taxable
income and capital gains to shareholders and to otherwise qualify as a regulated
investment company under provisions of the Internal Revenue Code. Accordingly,
no provision has been made for federal income taxes.

DISTRIBUTIONS TO SHAREHOLDERS--Distributions to shareholders are recorded
on the ex-dividend date. Distributions from net investment income and net
realized gains are declared and paid annually.

The character of distributions made during the year from net investment
income or net realized gains may differ from their ultimate characterization for
federal income tax purposes. These differences are due to differences in the
recognition of income and expense items for financial statement and tax
purposes.

SUPPLEMENTARY INFORMATION--Certain officers and directors of the
Corporation are also officers and/or directors, and, as a group, controlling
stockholders of American Century Companies, Inc., the parent of the
Corporation's investment manager, ACIM, the Corporation's distributor, American
Century Investment Services, Inc., and the Corporation's transfer agent,
American Century Services Corporation.

USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.

- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH RELATED PARTIES

The Corporation has entered into a Management Agreement with ACIM that
provides the Fund with investment advisory and management services in exchange
for a single, unified fee. The Agreement provides that all expenses of the Fund,
except brokerage commissions, taxes, interest, expenses of those directors who
are not considered "interested persons" as defined in the Investment Company Act
of 1940 (including counsel fees) and extraordinary expenses, will be paid by
ACIM. The fee is computed daily and paid monthly based on the Fund's average
daily closing net assets during the previous month. The annual management fee
for the Fund is 1.00%.

- --------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS

Purchases and sales of investment securities, excluding short-term
investments, totaled $85,512,894 and $29,637,124, respectively.

As of June 30, 1997, accumulated net unrealized appreciation was
$5,395,759, consisting of unrealized appreciation of $5,805,628 and unrealized
depreciation of $409,869. The aggregate cost of investments for federal income
tax purposes was the same as the cost for financial reporting purposes.

Semiannual Report Notes to Financial Statements 11

FINANCIAL HIGHLIGHTS

For a Share Outstanding Throughout the Periods Ended as Indicated

1997(1) 1996(2)

PER-SHARE DATA

Net Asset Value,
Beginning of Period......................... $5.58 $5.00
-------- --------
Income From Investment Operations

Net Investment Income ................. 0.04 0.05

Net Realized and Unrealized Gain
on Investment Transactions............. 0.70 0.56
-------- --------
Total From
Investment Operations.................. 0.74 0.61
-------- --------
Distributions

From Net Investment Income............. (0.04) (0.03)

From Net Realized Gains
on Investment Transactions............. (0.05) --
-------- --------
Total Distributions.................... (0.09) (0.03)
-------- --------
Net Asset Value,
End of Period............................... $6.23 $5.58
======== ========
Total Return(3)........................ 13.35% 12.28%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses
to Average Net Assets(4).................... 1.00% 1.00%

Ratio of Net Investment Income
to Average Net Assets(4).................... 1.90% 1.98%

Portfolio Turnover Rate..................... 39% 49%

Average Commission Paid per
Investment Security Traded.................. $0.0336 $0.0271

Net Assets, End
of Period (in thousands).................... $92,312 $23,894

(1) Six months ended June 30, 1997 (unaudited).
(2) May 1, 1996 (inception) through December 31, 1996.
(3) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns are not annualized.
(4) Annualized.

See Notes to Financial Statements

12 Financial Highlights American Century Investments

NOTES

Semiannual Report Notes 13

NOTES

14 Notes American Century Investments

NOTES

Semiannual Report Notes 15

BACKGROUND INFORMATION

INVESTMENT PHILOSOPHY AND POLICIES

Conservative investment practices are the hallmark of American Century's
conservative equity funds. Broad diversification across many industries is
stressed to reduce the impact of one sector on fund performance. The management
team also looks for dividend yield, since dividend income can help offset the
impact of market downturns on fund performance. American Century funds are
managed by teams, rather than by one "star" manager. We believe this enables us
to make better, more consistent management decisions.

VP VALUE invests in the equity securities of seasoned, established
businesses that the fund's management team believes are temporarily undervalued.
This is determined by comparing a stock's share price with key financial
measures, including earnings, book value, cash flow and dividends. If the
stock's price relative to these measures is low and the company's balance sheet
is solid, its securities are candidates for purchase. The management team may
secondarily look for income when making portfolio selections.

COMPARATIVE INDICES

The indices listed below are used in the report to serve as a comparison
for the performance of the fund. They are not investment products available for
purchase.

The S&P 500 is a capitalization-weighted index of the stocks of 500
publicly-traded U.S. companies that are considered to be leading firms in
leading industries. Created by the Standard & Poor's Corporation, the index is
viewed as a broad measure of U.S. stock performance.

The S&P 500/BARRA Value index is a capitalization-weighted index consisting
of S&P 500 stocks that have lower price/book ratios and in general share other
characteristics associated with value-style stocks.

The S&P 500/BARRA Growth index is a capitalization-weighted index
consisting of S&P 500 publicly-traded U.S. companies that have higher price/book
ratios and in general share other characteristics associated with growth-style
investing.

FUND MANAGEMENT TEAM LEADERS

Portfolio Manager Peter Zuger
Portfolio Manager Phil Davidson

16 Background Information American Century Investments

GLOSSARY

RETURNS

o TOTAL RETURN figures show the overall percentage change in the value of a
hypothetical investment in the fund and assume that all of the fund's
distributions are reinvested.

o AVERAGE ANNUAL RETURNS illustrate the annually compounded returns that would
have produced the fund's cumulative total returns if the fund's performance had
been constant over the entire period. Average annual returns smooth out
variations in a fund's return; they are not the same as year-by-year results.
For year-by-year total returns, please refer to the "Financial Highlights" on
page 12.

PORTFOLIO STATISTICS

o NUMBER OF COMPANIES-- the number of different companies held by a fund on a
given date.

o PRICE/EARNINGS (P/E) RATIO-- a stock value measurement calculated by dividing
a company's stock price by its earnings per share, with the result expressed as
a multiple instead of as a percentage. (Earnings per share is calculated by
dividing the after-tax earnings of a corporation by its outstanding shares.)

o PORTFOLIO TURNOVER-- the percentage of a fund's investment portfolio that is
replaced during a given time period, usually a year. Actively managed portfolios
tend to have higher turnover than passively managed portfolios such as index
funds.

TYPES OF STOCKS

o BLUE-CHIP STOCKS-- stocks of the most established companies in American
industry. They are generally large, fairly stable companies that have
demonstrated consistent earnings and usually have long-term growth potential.
Examples include General Electric and Coca-Cola.

o CYCLICAL STOCKS-- generally considered to be stocks whose price and earnings
fluctuations tend to follow the ups and downs of the business cycle. Examples
include the stocks of automobile manufacturers, steel producers and textile
operators.

o GROWTH STOCKS-- stocks of companies that have experienced above-average
earnings growth and appear likely to continue such growth. These stocks often
sell at high P/E ratios. Examples can include the stocks of high-tech, computer
hardware and computer software companies.

o LARGE-CAPITALIZATION ("LARGE-CAP") STOCKS-- generally considered to be stocks
of companies with a market capitalization (the total value of a company's
outstanding stock) of more than $5 billion. These tend to be the stocks that
make up the Dow Jones Industrial Average and the S&P 500.

o MEDIUM-CAPITALIZATION ("MID-CAP") STOCKS-- generally considered to be stocks
of companies with a market capitalization (the total value of a company's
outstanding stock) of between $1 billion and $5 billion. These tend to be the
stocks that make up the S&P MidCap 400.

o SMALL-CAPITALIZATION ("SMALL-CAP") STOCKS-- generally considered to be stocks
of companies with a market capitalization (the total value of a company's
outstanding stock) of less than $1 billion. These tend to be the stocks that
make up the Russell 2000 Index.

o VALUE STOCKS-- generally considered to be stocks that are purchased because
they are relatively inexpensive. These stocks are typically characterized by low
P/E ratios.

STATISTICAL TERMINOLOGY

o PRICE/BOOK RATIO-- a stock value measurement calculated by dividing a
company's stock price by its book value per share, with the result expressed as
a multiple instead of as a percentage. (Book value per share is calculated by
subtracting a company's liabilities from its assets, then dividing that value by
the number of outstanding shares.)

Semiannual Report Glossary 17

[american century logo]
American
Century(sm)

P.O. Box 419385
Kansas City, Missouri
64141-6385

Investor Services:
1-800-345-3533 or 816-531-5575

Automated Information Line:
1-800-345-8765

Telecommunications Device for the Deaf:
1-800-345-1833 or 816-444-3485

Fax: 816-340-4360

Internet: www.americancentury.com

American Century Variable Portfolios, Inc.

Investment Manager
American Century Investment Management, Inc.
Kansas City, Missouri

This report and the financial statements contained herein are submitted for the
general information of our shareholders. The report is not authorized for
distribution to prospective investors unless preceded or accompanied by an
effective prospectus.

American Century Investment Services, Inc.

9707 [recycled logo]
SH-BKT-9292 Recycled
<PAGE>
SEMIANNUAL REPORT

[american century logo]
American
Century(sm)

JUNE 30, 1997

AMERICAN CENTURY
VARIABLE
PORTFOLIOS, INC.

VP International

[front cover]

TABLE OF CONTENTS

Our Message to You......................................................... 1
Performance & Portfolio Information........................................ 2
Management Q & A........................................................... 3
Schedule of Investments.................................................... 5
Statement of Assets and Liabilities........................................ 10
Statement of Operations.................................................... 11
Statements of Changes in Net Assets........................................ 12
Notes to Financial Statements.............................................. 13
Financial Highlights....................................................... 15
Background Information
Investment Philosophy and Policies.................................... 16
How Currency Returns Affect Performance............................... 16
Comparative Indices................................................... 16
Fund Management Team Leaders.......................................... 16
Glossary................................................................... 17

We welcome your comments or questions about this report.
See the back cover for ways to contact us by mail, phone or e-mail.

American Century Investments

OUR MESSAGE TO YOU

[photo of James E. Stowers, Jr. and James E. Stowers III]

The six months ended June 30, 1997, were very rewarding for investors in
American Century VP International Fund, formerly TCI International. In the
Management Q&A that follows, the investment team discusses the fund's strong
performance and the strategy that generated such competitive returns.

To address the needs of investors seeking a conservative domestic approach,
we are pleased to announce that we plan to enhance our VP offerings by adding VP
Income & Growth in September. This fund will use quantitative management
strategies to pursue its investment objectives -- dividend growth, current
income and capital appreciation. VP Income & Growth is designed to be a core
holding for annuity investors seeking a fund that uses a risk-adjusted
investment approach to provide returns representative of the overall performance
of the U.S. stock market.

Within the framework of this new relationship, American Century will
continue to operate as an independent company. No changes in your fund's
portfolio managers, investment policies, fees or expenses are anticipated as a
result of this transaction. American Century's corporate management team remains
the same, and the Stowers family will retain voting control of the company.

In closing, we want to reassure you that American Century remains committed
to serving your investment needs first and foremost. Thank you for your trust
and confidence.

Sincerely,

/s/James E. Stowers, Jr. /s/James E. Stowers III
James E. Stowers, Jr. James E. Stowers III
Chairman of the Board and Founder Chief Executive Officer

Semiannual Report Our Message to You 1

PERFORMANCE & PORTFOLIO INFORMATION

AVERAGE ANNUAL RETURNS

6 MONTHS 1 YEAR 3 YEARS LIFE OF FUND(1)

TOTAL RETURNS AS OF JUNE 30, 1997

VP INTERNATIONAL...... 18.81% 26.67% 14.00% 12.44%
MSCI EAFE(R)Index..... 11.21% 12.84% 9.12% 8.91%
S&P 500............... 20.61% 34.69% 28.80% 26.67%

(1) The fund's inception date was 5/1/94.

See pages 16 and 17 for more information about comparative indices and returns.

[line graph - data below]

GROWTH OF $10,000 OVER LIFE OF FUND

$10,000 investment made 5/1/94

Value on 6/30/97

S&P 500 $21,117
VP International $14,489
MSCI EAFE(R) Index $13,102

S & P 500 VP INTERNATIONAL MSCI EAFE(R) INDEX
DATE VALUE VALUE VALUE

5/01/94 $10,000.00 $10,000.00 $10,000.00
6/30/94 $ 9,882.00 $ 9,780.00 $10,083.00
9/30/94 $10,365.00 $10,100.00 $10,093.00
12/31/94 $10,363.00 $ 9,500.00 $ 9,990.00
3/31/95 $11,369.00 $ 9,300.00 $10,176.00
6/30/95 $12,451.00 $ 9,880.00 $10,250.00
9/30/95 $13,437.00 $10,360.00 $10,677.00
12/31/95 $14,246.00 $10,660.00 $11,110.00
3/31/96 $15,008.00 $10,920.00 $11,431.00
6/30/96 $15,678.00 $11,439.00 $11,611.00
9/30/96 $16,160.00 $11,520.00 $11,597.00
12/31/96 $17,510.00 $12,196.00 $11,781.00
3/31/97 $17,982.00 $12,840.00 $11,597.00
6/30/97 $21,117.00 $14,489.00 $13,102.00

Past performance does not guarantee future results. Investment return and
principal value will fluctuate, and redemption value may be more or less than
original cost.

The line representing the fund's total return includes operating expenses (such
as transaction costs and management fees) that reduce returns, while the return
lines of the indices do not.

PORTFOLIO AT A GLANCE

6/30/97 12/31/96

Number of Companies 107 101
Portfolio Turnover 67%(1) 154%(2)

(1) Six months ended 6/30/97.
(2) Year ended 12/31/96.

See Glossary on page 17 for investment terms.

2 Performance & Portfolio Information American Century Investments

MANAGEMENT Q & A

An interview with Henrik Strabo and Mark Kopinski, portfolio managers on
the VP International investment team.

HOW DID VP INTERNATIONAL PERFORM FOR THE SIX MONTHS ENDED JUNE 30, 1997?

The fund provided strong performance for its investors, returning 18.81%
compared with an 11.21% return for EAFE(R), its benchmark index. For the 12
months ended June 30, 1997, the fund was up 26.67% compared with EAFE(R)'s
12.84% return.

WHAT EXPLAINS THE FUND'S STRONG PERFORMANCE?

We sought out and found strong growth stocks that generated excellent
returns. Execution of our "bottom up" approach led to investments in the shares
of relatively more European companies and fewer firms in Japan and the Far East.
European stocks performed well during the period for several reasons. Europe is
in a different stage of the business cycle than the United States, characterized
by falling interest rates and investor optimism about continued low rates. This
environment benefits stocks as companies enjoy lower borrowing costs. European
shares also surged as many corporations followed the lead of U.S. firms in
restructuring to become more competitive globally.

WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO DURING THE PERIOD?

We sharply increased holdings in the Netherlands. At the end of the period
these holdings stood at 14.20%, second only to Japan. The Netherlands has a long
history as the center of trade for Europe and is home to some of the largest,
most profitable businesses in the world. A stock we added during the period
illustrates one way in which the Dutch continue to dominate world trade.
Internationale Nederland Groep (ING) is a financial services company that is
participating in a global boom in its industry. ING has entered southeast Asia,
Eastern Europe and Latin America to serve the increasing demand for insurance,
banking, brokerage services and mutual funds.

WHICH STOCKS OR SECTORS ADDED MOST TO THE FUND'S RETURNS?

Holdings in financial services, technology, automotive and pharmaceutical
sectors all performed well during the period. Three holdings, discussed in our
last shareholder report, Telebras, Volkswagen and HSBC Holdings, continued to
lead the list of top performing stocks. Rohm Co. Ltd. was among our
top-performing Japanese stocks. Rohm supplies electronic parts to digital
cellular phone manufacturers and makes specialized semiconductors used in
computers. Its stock performed well because of the increasing global demand
for digital cellular

TOP TEN HOLDINGS % of fund investments

As of As of
6/30/97 12/31/96

Novartis AG 4.6% 3.5%
Telecomunicacoes Brasileiras
S.A. ADR 3.0% 2.2%
ING Groep N.V. 2.9% --
Phillips Electronics N.V. 2.8% --
Credit Suisse Group 2.4% 1.8%
HSBC Holdings plc 1.9% 2.7%
Roche Holding AG 1.9% --
Bank of Nova Scotia 1.8% 1.2%
British Aerospace plc 1.8% 1.5%
Volkswagen AG 1.8% 2.0%

TOP FIVE INDUSTRIES % of fund investments

As of As of
6/30/97 12/31/96

Electrical & Electronic Components 13.1% 3.1%
Financial Services 9.2% 5.3%
Pharmaceuticals 8.7% 6.2%
Communications Services 7.8% 10.2%
Banking 7.6% 7.7%

Semiannual Report Management Q & A 3

MANAGEMENT Q & A

phone service. Demand for these phones has been so strong that we added two
phone manufacturers to the portfolio during the period: Nokia, which is based in
Finland, and Ericsson, which is a Swedish company.

DURING THE PERIOD, THE FUND CONTINUED TO HAVE THE LARGEST PERCENTAGE OF ITS
INVESTMENTS IN JAPAN -- 18.30% AS OF JUNE 30. HOW DID THESE HOLDINGS PERFORM?

The fund has enjoyed solid performance from its Japanese holdings by
focusing on the stocks of electronics companies with high export rates. These
companies are benefiting from three trends: the Japanese yen's weakness relative
to the U.S. dollar, which makes Japanese goods less expensive and more
competitive in the U.S.; strong markets for their products worldwide; and
corporate restructuring that has increased profitability.

ELECTIONS IN FRANCE HAVE CAST DOUBT ON WHETHER EUROPEAN COUNTRIES WILL UNITE
UNDER A SINGLE CURRENCY. HOW WILL THE FUTURE OF THE EUROPEAN MONETARY UNION
(EMU) AFFECT THE FUND?

The shift to a less fiscally conservative French government raises
questions about whether the monetary union will occur and, if so, under what
conditions. In the short term, the fund could be affected by rising interest
rates and falling stock prices brought on by uncertainty over EMU. In the long
term, we are confident that the European companies in which the fund invests
will continue the strong earnings growth pattern we identified before buying
their stock. Their growth is driven by factors outside the currency debate, such
as the need to be globally competitive and the need to attract capital.

WHAT DO YOU SEE AS THE OUTLOOK FOR INTERNATIONAL INVESTING?

People say the world is getting smaller but, for us, the world is getting
bigger as equity markets develop in countries that were formerly under the rule
of communism or a dictatorship. Other parts of the international community are
using the U.S. as a model for dealing with financial issues. As a result, we
have never had a world that looks as promising as it does today in terms of
investment opportunities. A second trend that should improve the outlook for
international investors is the belated effort by Western Europe and Japan to
meet pension deficits. Demographics are forcing these mature economies to move
to more flexible types of retirement plans that are funded jointly by employers
and employees. This will result in a massive build-up of capital seeking
investment opportunities. By investing in the stocks of the companies we
consider to have the strongest growth internationally, the fund is
well-positioned to benefit from this trend.

[bar graph - data below]

VP INTERNATIONAL INVESTMENTS BY COUNTRY

6/30/97 12/31/96

Japan 18% 19%
Netherlands 14% 5%
Switzerland 12% 7%
Germany 11% 9%
U.K. 9% 16%
Canada 8% 13%
France 5% 6%
Brazil 5% 2%
Other* 18% 23%

*No other country represented more than 3% of the fund as of 6/30/97.

4 Management Q & A American Century Investments

SCHEDULE OF INVESTMENTS

JUNE 30, 1997 (UNAUDITED)

Shares Value
- -----------------------------------------------------------------------------

COMMON STOCKS

ARGENTINA--0.5%
21,000 Telecom Argentina Stet-France
Telecom S.A. Cl B ADR $ 1,102,500
(communications services) ---------------

AUSTRALIA--1.2%
59,000 Macquarie Bank Limited 508,670
(banking)
213,000 Woodside Petroleum Limited 1,833,170
(energy production and marketing) ---------------
2,341,840
---------------

AUSTRIA--1.3%

14,000 VA Technologie AG 2,562,034
(business services and supplies) ---------------

BRAZIL--0.7%
3,039,500 Light-Servicos de Eletricidade S/A 1,468,153
(utilities) ---------------

CANADA--7.5%
81,500 Bank of Nova Scotia 3,570,808
(banking)
129,000 Bombardier Inc. Cl B 2,924,069
(aerospace and defense)
40,000 Newcourt Credit Group Inc.
(Acquired 5/22/97 through 6/3/97,
Cost $903,096)(2) 1,086,287
(financial services)
15,000 Northern Telecom Ltd. 1,351,885
(communications equipment)
110,600 QLT PhotoTherapeutics, Inc.(1) 2,346,801
(biotechnology)
41,700 Rigel Energy Corp.(1) 445,432
(energy production and marketing)
160,000 Rogers Communications, Inc. Cl B(1) 1,002,281
(communications services)
26,867 St. Laurent Paperboard Inc.
(Acquired 6/2/94 through 5/28/97,
Cost $407,695)(1)(2) 418,322
(paper and forest products)

Shares Value
- -----------------------------------------------------------------------------

60,200 Talisman Energy, Inc.(1) $ 1,850,665
(energy production and marketing) ---------------
14,996,550
---------------

FINLAND--2.4%
36,000 Nokia Corp. Cl A ADR 2,655,000
(communications equipment)
4,500 Raision Tehtaat Oy 309,388
(food and beverage)
18,200 Sampo Insurance Company Ltd. 1,770,053
(insurance) ---------------
4,734,441
---------------

FRANCE--5.3%
16,000 Alcatel Alsthom Compagnie Generale 2,003,232
(communications services)
35,000 Axa-UAP 2,176,150
(insurance)
14,000 Compagnie Generale des Eaux(1) 1,793,315
(utilities)
2,000 Pinault-Printemps-Redoute SA 960,789
(retail-general merchandise)
14,000 Rhone-Poulenc 571,574
(chemicals and resins)
28,000 Schneider SA(1) 1,489,904
(electrical and electronic components)
15,000 Societe Generale 1,673,897
(banking) ---------------
10,668,861
---------------

GERMANY--8.9%
1,000 Altana AG 1,066,667
(pharmaceuticals)
57,000 BHW Holding AG(1) 964,301
(financial services)
3,000 Bayerische Motoren Werke (BMW) AG 2,482,581
(automobiles and auto parts)
32,000 Daimler-Benz AG 2,596,702
(automobiles and auto parts)
14,000 Deutsche Bank AG 818,122
(financial services)
34,000 Deutsche Pfandbrief-und
Hypothekenbank AG 1,955,670
(banking)

See Notes to Financial Statements

Semiannual Report Schedule of Investments 5

SCHEDULE OF INVESTMENTS

JUNE 30, 1997 (UNAUDITED)

Shares Value
- -----------------------------------------------------------------------------

1,700 Henkel KGaA $ 90,179
(chemicals and resins)
3,000 Mannesmann AG 1,336,774
(industrial machinery and equipment)
7,000 SGL CARBON Aktiengesellschaft 958,624
(electrical and electronic components)
33,000 Siemens AG 1,959,656
(electrical and electronic components)
4,600 Volkswagen AG 3,526,996
(automobiles and auto parts) ---------------
17,756,272
---------------

HONG KONG--2.7%
124,354 HSBC Holdings plc 3,739,849
(banking)
99,000 Hutchison Whampoa Limited 856,147
(construction and property
development)
255,000 New World Infrastructure Ltd.(1) 720,813
(building and home improvements) ---------------
5,316,809
---------------

ITALY--1.3%
1,382,000 Credito Italiano 2,532,717
(banking) ---------------

JAPAN--18.3%
22,000 Advantest Corp. 1,690,534
(electrical and electronic components)
82,000 Bridgestone Corp. 1,904,645
(automobiles and auto parts)
59,000 Canon, Inc. 1,607,405
(consumer products)
29,000 Circle K Japan Co., Ltd. 1,666,259
(retail-food and drug)
129,000 Dainippon Ink & Chemicals Inc. 556,462
(chemicals and resins)
20,000 Fuji Machine Manufacturing Co. 724,764
(industrial equipment and machinery)
63,000 Fujikura Ltd. 588,631
(electrical and electronic components)
45,000 Hoya Corp. 2,004,017
(electrical and electronic components)

Shares Value
- -----------------------------------------------------------------------------

8,000 JUSCO Co. $ 270,346
(retail-food and drug)
12,000 Keyence Corporation 1,781,348
(control and measurement)
25,000 Konami Co., Ltd. 934,335
(computer software and services)
58,000 Mitsubishi Estate Co., Ltd. 840,726
(real estate)
29,000 Nintendo Co., Ltd. 2,431,016
(electrical and electronic components)
4,000 Nippon Broadcasting System 443,591
(broadcasting and media)
340 Nippon Telegraph & Telephone 3,265,805
(communications services)
29,000 Rohm Co. Ltd. 2,988,124
(electrical and electronic components)
99,000 Sankyo Company, Ltd. 3,328,240
(pharmaceuticals)
30,000 Sony Corp. 2,617,010
(electrical and electronic components)
99,000 Sumitomo Realty & Development 873,123
(real estate)
130,000 Terumo Corporation 2,486,029
(medical equipment and supplies)
47,000 Uni-Charm Corporation 1,674,467
(paper and forest products)
105,000 Yamaha Corp. 1,925,428
(leisure) ---------------
36,602,305
---------------

MEXICO--1.5%
816,000 Grupo Financiero Banamex
Accival, SA de CV Cl B(1) 2,097,977
(financial services)
29,000 Grupo Televisa S.A. GDR(1) 880,875
(broadcasting and media) ---------------
2,978,852
---------------

NETHERLANDS--14.2%
26,249 Assurantieconcern Stad Rotterdam 1,199,091
(insurance)
57,000 Getronics NV 1,840,395
(computer software and services)

See Notes to Financial Statements

6 Schedule of Investments American Century Investments

SCHEDULE OF INVESTMENTS

JUNE 30, 1997 (UNAUDITED)

Shares Value
- -----------------------------------------------------------------------------

14,500 Gucci Group N.V. $ 933,438
(retail-apparel)
5,000 Hunter Douglas N.V.(1) 425,240
(building and home improvements)
124,136 ING Groep N.V. 5,721,244
(financial services)
25,020 Koninklijke Ahold NV 2,110,059
(retail-food and drug)
78,000 Phillips Electronics N.V. 5,606,250
(electrical and electronic components)
23,000 Randstad Holdings N.V. 2,424,628
(business services and supplies)
68,400 Stork N.V. 2,786,718
(business services and supplies)
5,000 Unilever N.V. 1,090,000
(diversified)
139,000 VNU Tijdschriftengroep Nederland 3,072,214
(printing and publishing)
42,300 Vedior NV
(Acquired 6/5/97 through 6/27/97,
Cost $963,883)(1)(2) 1,118,033
(business services and supplies) ---------------
28,327,310
---------------
NORWAY--0.6%
44,000 Smedvig ASA Cl A 1,099,624
(energy services)
5,750 Smedvig ASA Cl B 140,560
(energy services) ---------------
1,240,184
---------------

PORTUGAL--0.6%
66,400 EDP-Electricidade de Portugal, S.A.(1) 1,217,553
(electrical and electronic components) ---------------

SPAIN--1.7%
40,000 Cortefiel, S.A. 1,744,557
(retail-specialty)
56,000 Telefonica de Espana 1,618,124
(communications services) ---------------
3,362,681
---------------

Shares Value
- -----------------------------------------------------------------------------

SWEDEN--3.0%
55,000 Ericsson (L.M.) Telephone Co. ADR $ 2,167,344
(communications equipment)
47,000 Hennes & Mauritz AB Cl B 1,686,071
(retail-apparel)
57,000 Skandia Forsakrings AB 2,103,866
(insurance) ---------------
5,957,281
---------------

SWITZERLAND--12.3%
1,600 ABB AG 2,422,499
(electrical and electronic components)
36,200 Credit Suisse Group 4,650,087
(financial services)
1,500 Julius Baer Holding AG 2,296,783
(financial services)
1,800 Nestle S.A. 2,375,090
(food and beverage)
5,650 Novartis AG 9,034,426
(pharmaceuticals)
410 Roche Holding AG 3,709,143
(pharmaceuticals) ---------------
24,488,028
---------------

UNITED KINGDOM--9.2%
120,683 BBA Group plc 712,470
(diversified)
159,400 British Aerospace plc 3,542,824
(aerospace and defense)
45,400 British-Borneo Petroleum Syndicate plc 1,070,215
(energy production and marketing)
94,000 Cable and Wireless Communications plc(1) 497,886
(communications services)
89,000 Cairn Energy plc(1) 717,834
(energy production and marketing)
72,800 Flextech plc(1) 778,457
(broadcasting & media)
85,200 Granada Group plc 1,119,332
(diversified)
112,372 Misys plc 2,546,167
(computer software and services)
213,000 Next Plc 2,403,376
(retail-apparel)

See Notes to Financial Statements

Semiannual Report Schedule of Investments 7

SCHEDULE OF INVESTMENTS

JUNE 30, 1997 (UNAUDITED)

Shares Value
- -----------------------------------------------------------------------------

80,000 Norwich Union plc(1) $ 425,063
(insurance)
23,100 Royal Bank of Scotland Group plc 214,934
(banking)
125,673 Siebe plc 2,125,471
(diversified)
135,855 Stagecoach Holdings plc 1,432,376
(transportation)
57,000 Standard Chartered plc 868,285
(banking) ---------------
18,454,690
---------------
TOTAL COMMON STOCKS--93.2% 186,109,061
(Cost $159,220,708) ---------------

PREFERRED STOCKS

BRAZIL--3.8%
60,000,000 Banco Bradesco S.A. 601,923
(financial services)
3,700,000 Petroleo Brasileiro S.A. 1,013,887
(energy production and marketing)
39,200 Telecomunicacoes Brasileiras S.A. ADR 5,948,600
(communications services) ---------------
7,564,410
---------------

GERMANY--1.6%
26,300 Henkel KGaA 1,493,161
(chemicals and resins)
2,000 SAP AG 415,197
(computer software and services)
2,000 Wella Aktiengesellschaft 1,364,875
(consumer products) ---------------
3,273,233
---------------
TOTAL PREFERRED STOCKS--5.4% 10,837,643
(Cost $8,364,661) ---------------

Principal Amount Value
- -----------------------------------------------------------------------------

TEMPORARY CASH INVESTMENTS--1.4%
Repurchase Agreement (Goldman Sachs & Co., Inc.), 5.80%, due 7/1/97,
collateralized by $2,570,000 par value U.S. Treasury Bonds, 7.50%, due
11/15/16
(Delivery value $2,700,435) $ 2,700,000
(Cost $2,700,000) ---------------

TOTAL INVESTMENT SECURITIES--100.0% $199,646,704
(Cost $170,285,369) ===============

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS

Contracts Settlement Unrealized
to Sell Date Value Gain
------------------ ------------- -------------- -------------

8,028,612 CHF 7/31/97 $ 5,521,552 $ 78,250
7,382,297 DEM 7/31/97 4,243,505 31,941
13,594,816 FRF 7/31/97 2,317,581 19,039
1,693,692 GBP 7/31/97 2,814,069 4,522
10,111,664 NLG 7/31/97 5,161,251 46,990
------------ ------------
$20,057,958 $180,742
============ ============

(Value on Settlement Date $20,238,700)

See Notes to Financial Statements

8 Schedule of Investments American Century Investments

SCHEDULE OF INVESTMENTS

JUNE 30, 1997 (UNAUDITED)

NOTES TO SCHEDULE OF INVESTMENTS

ADR = American Depositary Receipt CHF = Swiss Franc DEM = German Mark FRF =
French Franc GBP = British Pound GDR = Global Depositary Receipt NLG =
Netherlands Guilder

(1) Non-income producing.

(2) Security was purchased under Rule 144A of the Securities Act of 1933 and,
unless registered under the Act or exempted from registration, may only be sold
to qualified institutional investors. The aggregate value of restricted
securities at June 30, 1997, was $2,622,642, which represented 1.3% of net
assets.

See Notes to Financial Statements

Semiannual Report Schedule of Investments 9

<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES

JUNE 30, 1997 (UNAUDITED)

ASSETS
<S> <C>
Investment securities, at value (identified cost of $170,285,369) (Note 3)........................... $ 199,646,704
Foreign currency holdings, at value (identified cost of $7,001)...................................... 6,915
Cash ................................................................................................ 272,733
Receivable for forward foreign currency exchange contracts........................................... 180,742
Receivable for investments sold...................................................................... 3,506,621
Dividends and interest receivable.................................................................... 544,212
--------------
204,157,927
--------------

LIABILITIES

Payable for investments purchased.................................................................... 2,541,477
Payable for capital shares redeemed.................................................................. 807,991
Accrued management fees (Note 2)..................................................................... 235,463
Other liabilities.................................................................................... 4,515
--------------
3,589,446
--------------
Net Assets Applicable to Outstanding Shares.......................................................... $ 200,568,481
==============

CAPITAL SHARES, $0.01 PAR VALUE

Authorized........................................................................................... 200,000,000
==============
Outstanding.......................................................................................... 29,263,748
==============
NET ASSET VALUE PER SHARE............................................................................ $ 6.85
==============

NET ASSETS CONSIST OF:

Capital (par value and paid-in surplus).............................................................. $ 164,133,971
Undistributed net investment income.................................................................. 585,622
Accumulated undistributed net realized gain from investments and foreign currency transactions....... 6,301,470
Net unrealized appreciation on investments and translation of
assets and liabilities in foreign currencies (Note 3)........................................... 29,547,418
--------------
$ 200,568,481
==============
</TABLE>

See Notes to Financial Statements

10 Statement of Assets and Liabilities American Century Investments

<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)

INVESTMENT INCOME

INCOME:
<S> <C>
Dividends (net of foreign taxes withheld of $192,381)................................................ $ 1,295,719
Interest............................................................................................. 363,506
--------------
1,659,225
--------------

EXPENSES (NOTE 2):
Management fees...................................................................................... 1,043,606
Directors' fees and expenses......................................................................... 136
--------------
1,043,742
--------------
NET INVESTMENT INCOME................................................................................ 615,483
--------------

REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FOREIGN CURRENCY (NOTE 3)

NET REALIZED GAIN (LOSS) ON:
Investments.......................................................................................... 7,833,340
Foreign currency transactions........................................................................ (1,452,774)
--------------
6,380,566
--------------
CHANGE IN NET UNREALIZED APPRECIATION ON:
Investments.......................................................................................... 19,872,491
Translation of assets and liabilities in foreign currencies.......................................... (475,026)
--------------
19,397,465
--------------

NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FOREIGN CURRENCY..................................................................... 25,778,031
--------------

NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............................................................................ $ 26,393,514
==============
</TABLE>

See Notes to Financial Statements

Semiannual Report Statement of Operations 11

<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS

SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1996

INCREASE IN NET ASSETS 1997 1996

OPERATIONS

<S> <C> <C>
Net investment income............................................................... $ 615,483 $ 262,415
Net realized gain on investments
and foreign currency transactions.............................................. 6,380,566 4,021,576
Change in net unrealized appreciation (depreciation)
on investments and translation of assets
and liabilities in foreign currencies.......................................... 19,397,465 6,792,807
------------- -------------
Net increase in net assets resulting from operations................................ 26,393,514 11,076,798
------------- -------------

DISTRIBUTIONS TO SHAREHOLDERS

From net investment income.......................................................... (1,436,052) (279,252)
In excess of net investment income.................................................. -- (928,713)
From net realized gains from investment transactions................................ (2,769,529) (402,655)
------------- -------------
Decrease in net assets from distributions........................................... (4,205,581) (1,610,620)
------------- -------------

CAPITAL SHARE TRANSACTIONS

Proceeds from shares sold........................................................... 131,210,442 84,797,362
Proceeds from reinvestment of distributions......................................... 4,205,581 1,610,620
Payments for shares redeemed........................................................ (58,370,658) (46,147,914)
------------- -------------
Net increase in net assets from capital share transactions.......................... 77,045,365 40,260,068
------------- -------------

NET INCREASE IN NET ASSETS.......................................................... 99,233,298 49,726,246

NET ASSETS

Beginning of period................................................................. 101,335,183 51,608,937
------------- -------------
End of period....................................................................... $ 200,568,481 $ 101,335,183
============= =============

Undistributed net investment income................................................. $ 585,622 $ 1,422,517
============= =============

TRANSACTIONS IN SHARES OF THE FUND

Sold ............................................................................... 20,724,626 15,365,530
Issued in reinvestment of distributions............................................. 691,708 292,840
Redeemed............................................................................ (9,157,423) (8,329,954)
------------- -------------
Net increase ....................................................................... 12,258,911 7,328,416
============= =============
</TABLE>

See Notes to Financial Statements

12 Statements of Changes in Net Assets American Century Investments

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1997 (UNAUDITED)

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION--American Century Variable Portfolios, Inc., formerly TCI
Portfolios, Inc., (the Corporation) is registered under the Investment Company
Act of 1940 as an open-end diversified management investment company. American
Century VP International, formerly TCI International, (the Fund) is one of the
five series of funds issued by the Corporation. The Fund's investment objective
is capital growth. The Fund seeks to achieve its investment objective by
investing primarily in an internationally diversified portfolio of equity
securities that are considered by management to have prospects for appreciation.
The Fund will invest primarily in securities of issuers located in developed
markets. The following significant accounting policies, related to the Fund, are
in accordance with accounting policies generally accepted in the investment
company industry.

SECURITY VALUATIONS--Portfolio securities traded primarily on a principal
securities exchange are valued at the last reported sales price, or the mean of
the latest bid and asked prices where no last sales price is available.
Securities traded over-the-counter are valued at the mean of the latest bid and
asked prices or, in the case of certain foreign securities, at the last reported
sales price, depending on local convention or regulation. When valuations are
not readily available, securities are valued at fair value as determined in
accordance with procedures adopted by the Board of Directors.

Net realized foreign currency exchange gains or losses arise from sales of
portfolio securities, sales of foreign currencies, and the difference between
asset and liability amounts initially stated in foreign currencies and the U.S.
dollar value of the amounts actually received or paid. Net unrealized foreign
currency exchange gains or losses arise from changes in the value of portfolio
securities and other assets and liabilities resulting from changes in the
exchange rates.

Net realized and unrealized foreign currency exchange gains or losses
occurring during the holding period of portfolio securities are a component of
realized gain (loss) on foreign currency transactions and unrealized
appreciation (depreciation) on translation of assets and liabilities in foreign
currencies, respectively.

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS--The Fund may enter into
forward foreign currency exchange contracts for the purpose of settling specific
purchases or sales of securities denominated in a foreign currency or to hedge
the Fund's exposure to foreign currency exchange rate fluctuations. When
required, the Fund will segregate assets in an amount sufficient to cover its
obligations under the hedge contracts. The net U.S. dollar value of foreign
currency underlying all contractual commitments held by the Fund and the
resulting unrealized appreciation or depreciation are determined daily using
prevailing exchange rates. Forward contracts involve elements of market risk in
excess of the amount reflected in the Statement of Assets and Liabilities. The
Fund bears the risk of an unfavorable change in the foreign currency exchange
rate underlying the forward contract. Additionally, losses may arise if the
counterparties do not perform under the contract terms.

REPURCHASE AGREEMENTS--The Fund may enter into repurchase agreements with
institutions that the Fund's investment manager, American Century Investment
Management, Inc. (ACIM), has determined are creditworthy pursuant to criteria
adopted by the Board of Directors. Each repurchase agreement is recorded at
cost. The Fund requires that the securities purchased in a repurchase
transaction be transferred to the custodian in a manner sufficient to enable the
Fund to obtain those securities in the event of a default under the repurchase
agreement. ACIM monitors, on a daily basis, the value of the securities
transferred to ensure that the value, including accrued interest, of the
securities under each repurchase agreement is equal to or greater than amounts
owed to the Fund under each repurchase agreement.

DISTRIBUTIONS TO SHAREHOLDERS--Distributions to shareholders are recorded
on the ex-dividend date. Distributions from net investment income and net
realized gains are declared and paid annually.

The character of distributions made during the year from net investment
income or net realized gains may differ from

Semiannual Report Notes to Financial Statements 13

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1997 (UNAUDITED)

their ultimate characterization for federal income tax purposes. These
differences are primarily due to differing treatments for foreign currency
transactions and wash sales.

- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH RELATED PARTIES

- --------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS

Purchases and sales of investment securities, excluding short-term
investments, for the six months ended June 30, 1997, totaled $167,814,646 and
$88,165,449. On December 31, 1996, accumulated net unrealized appreciation on
investments, based on the aggregate cost of investments of $170,302,099 for
federal income tax purposes, was $29,344,605, consisting of unrealized
appreciation of $30,412,582 and unrealized depreciation of $1,067,977.

14 Notes to Financial Statements American Century Investments

<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS

For a Share Outstanding Throughout the Years Ended December 31 (except as noted)

1997(1) 1996 1995 1994(2)

PER-SHARE DATA

Net Asset Value,

<S> <C> <C> <C> <C>
Beginning of Period.............................. $5.96 $5.33 $4.75 $5.00
-------- -------- -------- --------
Income From Investment Operations

Net Investment Income ...................... 0.03 0.02(3) 0.03(3) --

Net Realized and Unrealized Gain
(Loss) on Investment Transactions........... 1.07 0.74 0.55 (0.25)
-------- -------- -------- --------
Total From
Investment Operations....................... 1.10 0.76 0.58 (0.25)
-------- -------- -------- --------
Distributions

From Net Investment Income.................. (0.07) (0.03) -- --

In Excess of Net
Investment Income........................... -- (0.07) -- --

From Net Realized Gains
on Investment Transactions.................. (0.14) (0.03) -- --
-------- -------- -------- --------
Total Distributions......................... (0.21) (0.13) -- --
-------- -------- -------- --------
Net Asset Value, End of Period................... $6.85 $5.96 $5.33 $4.75
======== ======== ======== ========
Total Return(4)............................. 18.81% 14.41% 12.21% (5.00)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses
to Average Net Assets............................ 1.50%(5) 1.50% 1.50% 1.50%(5)

Ratio of Net Investment Income (Loss)
to Average Net Assets............................ 0.89%(5) 0.31% 0.70% (0.11)%(5)

Portfolio Turnover Rate.......................... 67% 154% 214% 157%

Average Commission Paid per

Investment Security Traded....................... $0.0068 $0.0225 $0.0020 --(6)

Net Assets, End
of Period (in thousands)......................... $200,568 $101,335 $51,609 $17,993

(1) Six months ended June 30, 1997 (unaudited).

(2) May 1, 1994 (inception) through December 31, 1994.

(3) Computed using average shares outstanding throughout the period.

(4) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.

(5) Annualized.

(6) Disclosure of average commission paid per investment security traded was not
required prior to the year ended December 31, 1995.
</TABLE>

See Notes to Financial Statements

Semiannual Report Financial Highlights 15

BACKGROUND INFORMATION

INVESTMENT PHILOSOPHY AND POLICIES

The philosophy behind American Century's growth funds focuses on three
important principles. Chiefly, the funds seek to own successful companies, which
we define as those whose earnings and revenues are growing at accelerating
rates. In addition, we attempt to keep the funds fully invested, regardless of
short-term market activity. Experience has shown that market gains can occur in
unpredictable spurts and that missing even some of these opportunities may
significantly limit potential for gain. Finally, American Century funds are
managed by teams, rather than by one "star" manager. We believe this enables us
to make better, more consistent management decisions.

VP INTERNATIONAL invests primarily in the equity securities of foreign
companies that exhibit accelerating earnings growth. The fund's diversified
holdings are not restricted by geography or industry segment. It will typically
have significant share-price fluctuations.

HOW CURRENCY RETURNS AFFECT FUND PERFORMANCE

For U.S. investors, the total return from international stocks includes the
effects of currency fluctuations -- the movement of international currency
values in relation to the value of the U.S. dollar. Currency exchange rates come
into play when international stock income, gains and losses are converted into
U.S. dollars.

Changing currency values may have a significant impact on the total returns
of international stock funds. The value of the foreign investments held by
international stock funds may be reduced or increased by changes in currency
exchange rates. The U.S. dollar value of a foreign security generally decreases
when the value of the dollar rises against the foreign currency in which the
security is denominated. This tended to be the case in 1996 and the first
quarter of 1997, when the dollar increased in value against most major foreign
currencies. (The weakened foreign currencies bought fewer dollars.) Conversely,
the U.S. dollar value of a foreign security tends to increase when the value of
the dollar falls against the foreign currency. (The stronger foreign currency
buys more dollars.) In addition, the value of fund assets may be affected by
losses and other expenses incurred in converting between U.S. dollars and
various currencies in order to purchase and sell foreign securities and by
currency restrictions, exchange control regulations, currency devaluations and
political developments.

COMPARATIVE INDICES

The indices listed below are used in the report to serve as a comparison
for the performance of the fund. They are not investment products available for
purchase.

The S&P 500 is a capitalization-weighted index of the stocks of 500
publicly-traded U.S. companies that are considered to be leading firms in
leading industries. Created by Standard & Poor's Corporation, the index is
viewed as a broad measure of U.S. stock market performance.

The MORGAN STANLEY EUROPE, AUSTRALIA, FAR EAST INDEX (EAFE(R)) is a widely
followed group of stocks from 20 different countries.

FUND MANAGEMENT TEAM LEADERS

Portfolio Manager Henrik Strabo
Portfolio Manager Mark Kopinski

16 Background Information American Century Investments

GLOSSARY

RETURNS

o TOTAL RETURN figures show the overall percentage change in the value of a
hypothetical investment in the fund and assume that all of the fund's
distributions are reinvested.

PORTFOLIO STATISTICS

o NUMBER OF COMPANIES -- the number of different companies held by a fund on a
given date.

o PORTFOLIO TURNOVER -- the percentage of a fund's investment portfolio that is
replaced during a given time period, usually a year. Actively managed portfolios
tend to have higher turnover than passively managed portfolios such as index
funds.

Semiannual Report Glossary 17

[american century logo]
American
Century(sm)

P.O. Box 419385
Kansas City, Missouri
64141-6385

Investor Services:
1-800-345-3533 or 816-531-5575

Automated Information Line:
1-800-345-8765

Telecommunications Device for the Deaf:
1-800-345-1833 or 816-444-3485

Fax: 816-340-4360

Internet: www.americancentury.com

American Century Variable Portfolios, Inc.

Investment Manager
American Century Investment Management, Inc.
Kansas City, Missouri

American Century Investment Services, Inc.

9707 [recycled logo]
SH-BKT-9291 Recycled
<PAGE>
SEMIANNUAL REPORT

[american century logo]
American
Century(sm)

JUNE 30, 1997

AMERICAN CENTURY
VARIABLE
PORTFOLIOS, INC.

VP Capital Appreciation

[front cover]

TABLE OF CONTENTS

Our Message to You....................................................1
Performance & Portfolio Information...................................2
Management Q & A......................................................3
Schedule of Investments...............................................5
Statement of Assets and Liabilities...................................7
Statement of Operations...............................................8
Statements of Changes in Net Assets...................................9
Notes to Financial Statements........................................10
Financial Highlights.................................................13
Background Information
Investment Philosophy and Policies..............................16
Comparative Indices.............................................16
Fund Management Team Leaders....................................16
Glossary.............................................................17

We welcome your comments or questions about this report.
See the back cover for ways to contact us by mail, phone or e-mail.

American Century Investments

OUR MESSAGE TO YOU

[photo of James E. Stowers, Jr. and James E. Stowers III]

The six months ended June 30, 1997, were very challenging for aggressive
growth funds such as American Century VP Capital Appreciation Fund, formerly TCI
Growth. As investors sought size, stability and familiarity, the S&P 500 and
funds that mirror that index outperformed growth funds investing in smaller
companies and emerging industries. These factors had a significant impact on the
short-term performance of VP Capital Appreciation. It is important to remember
that investing in aggressive growth funds involves significant short-term
volatility. Over the long term, however, an aggressive growth strategy can
provide significant capital appreciation that builds wealth.

To address the needs of investors seeking a more conservative approach, we
are pleased to announce that we plan to enhance our VP offerings by adding VP
Income & Growth in September. This fund will use quantitative management
strategies to pursue its investment objectives -- dividend growth, current
income and capital appreciation. VP Income & Growth is designed to be a core
holding for annuity investors seeking a fund that uses a risk-adjusted
investment approach to provide returns representative of the overall performance
of the U.S. stock market.

In addition to building our fund family, we have also been strengthening
our corporate team. In June, Bill Lyons, American Century's chief operating
officer, became president, assuming full responsibility for the company's
day-to-day operations. This change enables us to spend more time developing and
refining new investment technologies that build on the proprietary system we
pioneered 25 years ago. One of our goals is to ensure that we continue to evolve
and innovate -- building the investment tools today that will lead us and our
investors to success in the next century.

In July, American Century agreed to enter into a business partnership with
J.P. Morgan & Co., one of the strongest and most respected firms in the
financial services industry. J.P. Morgan will become a significant minority
owner of American Century Companies, Inc., the parent corporation of the
investment manager of the American Century family of mutual funds. Through this
partnership, we see many opportunities to expand the range of investment choices
and services we offer. A global financial services firm, J.P. Morgan has been in
business for more than 150 years, serving institutions, governments and
individuals with complex financial needs.

In closing, we want to reassure you that American Century remains committed
to serving your investment needs first and foremost. Thank you for your trust
and confidence.

Sincerely,

/s/James E. Stowers, Jr. /s/James E. Stowers III
James E. Stowers, Jr. James E. Stowers III
Chairman of the Board and Founder Chief Executive Officer

Semiannual Report Our Message to You 1

<TABLE>
<CAPTION>
PERFORMANCE & PORTFOLIO INFORMATION

TOTAL RETURNS AS OF JUNE 30, 1997
AVERAGE ANNUAL RETURNS
6 MONTHS 1 YEAR 3 YEARS 5 YEARS LIFE OF FUND(1)
<S> <C> <C> <C> <C> <C>
VP Capital Appreciation..............-3.46% -8.89% 8.80% 7.86% 9.83%
S&P 500..............................20.61% 34.69% 28.80% 19.74% 17.93%
S&P MidCap 400.......................13.04% 23.37% 22.43% 17.61% 19.36%(2)
S&P MidCap 400/BARRA Growth..........14.95% 23.39% 22.37% 16.86% --(3)

(1) The fund's inception date was November 20, 1987.

(2) For the period from 11/30/87 (the date nearest the fund's inception for
which data are available) to 6/30/97.

(3) Figures not available for this index prior to 1991.

See pages 16 and 17 for more information about comparative indices and returns.
</TABLE>

PORTFOLIO AT A GLANCE
6/30/97 12/31/96
Number of Companies 54 55
Price/Earnings Ratio (Median) 32.2 45.6
Portfolio Turnover 58%(1) 182%(2)

(1) Six months ended 6/30/97.
(2) Year ended 12/31/96.

[line graph - data below]

GROWTH OF $10,000 OVER LIFE OF FUND

VP Capital S&P S&P
Appreciation MidCap 400 500
$10,000. $10,000. $10,000.
$11,261. $10,773. $10,825.
$11,346. $12,846. $12,198.
$11,005. $13,021. $12,610.
$12,680. $15,691. $14,692.
$14,166. $17,649. $16,594.
$15,601. $18,113. $17,099.
$13,988. $16,746. $16,077.
$16,033. $20,439. $18,363.
$19,846. $25,135. $20,953.
$17,708. $24,231. $20,816.
$19,580. $28,129. $22,548.
$20,528. $29,729. $23,641.
$21,600. $32,055. $24,810.
$20,072. $29,713. $23,979.
$21,347. $30,906. $25,147.
$25,502. $36,352. $30,213.
$27,985. $40,471. $34,563.
$28,371. $44,200. $38,044.
$26,776. $48,242. $42,488.
$25,850. $54,531. $51,243.

Past performance does not guarantee future results. Investment return and
principal value will fluctuate, and redemption value may be more or less than
original cost.

The chart begins on November 30, 1987 because it is the date closest to the
fund's November 20, 1987 inception date for which S&P MidCap 400 return data are
available.

The line representing the fund's total return includes operating expenses (such
as transaction costs and management fees) that reduce returns, while the return
lines of the indices do not.

See Glossary on page 17 for investment terms.

2 Performance & Portfolio Information American Century Investments

MANAGEMENT Q & A

An interview with Glenn Fogle, lead manager on the VP Capital Appreciation
investment team.

HOW DID VP CAPITAL APPRECIATION PERFORM FOR THE SIX MONTHS ENDED JUNE 30,
1997?

The fund returned -3.46% for the first half of the year, compared to a
return of 13.04% for the S&P MidCap 400 and 14.95% for the S&P MidCap 400/BARRA
Growth index. The S&P MidCap 400 covers the 400 largest companies not included
in the S&P 500 and is considered a barometer of the performance of mid-cap
companies. The BARRA Growth index includes the half of the S&P MidCap 400 with
the highest price-to-book ratios.

WHY DID THE FUND UNDERPERFORM THE MARKET BY SUCH A WIDE MARGIN?

The fund had greater exposure than the S&P MidCap 400 to two parts of the
market that performed poorly during most of the period. The fund had
approximately 25% of its assets in companies with below $1 billion in total
market value at the end of the period, compared to 14% for the midcap index. In
addition, the companies in the fund had higher rates of earnings growth than the
companies represented in the S&P MidCap 400. Both traits were out of favor
during most of the period. Investors preferred the stocks of large companies
that are closely followed by analysts and are expected to produce steady gains
in earnings and stock prices. Because these large companies have turned in
favorable earnings reports in recent quarters, investors have not been willing
to pay a premium for smaller companies, even those with higher growth rates.
That trend has abated in the second quarter. From the late April bottom for the
small- and mid-cap market to the June 30, 1997, period end, Capital Appreciation
climbed 19.11% compared to a 15.76% rebound for the S&P MidCap 400.

(Editor's note: The small- and mid-cap rebound continued from the June 30
period end through July 31. Capital Appreciation returned 10.56% during that
time and the S&P MidCap 400 posted a 9.86% gain.)

WHY IS THE FUND SO DIFFERENT FROM ITS BENCHMARK?

Unlike an index fund, VP Capital Appreciation makes no attempt to match any
benchmark returns over short-term periods. In seeking superior long-term
returns, the fund generally owns companies that have much higher growth rates
than those in the index. Over time, we expect the exceptional earnings growth of
the stocks Capital Appreciation owns to more than offset any premium paid to buy
these companies. In the short run, however, the fund can be very volatile and
markedly underperform the index.

IN THE DECEMBER 31, 1996 ANNUAL REPORT, YOU DESCRIBED CHANGES YOU MADE IN
THE SIX MONTHS SINCE YOUR TEAM TOOK OVER MANAGEMENT OF THE FUND. WHAT CHANGES
HAVE YOU MADE THIS YEAR?

The changes have not been as drastic as last year, when we decreased the
number of companies in the portfolio and bought the stocks of companies showing
higher rates of earnings and revenue growth. The most significant change was
that we have been able to find accelerating earnings growth in a wider variety
of industry groups this year. As a result, the fund's technology holdings
dropped from nearly 40% of the portfolio at the beginning of the period to 30%
at the end. This broader diversification should help to reduce the fund's
volatility in future periods.

WHAT KINDS OF STOCKS HAVE BEEN ADDED TO THE PORTFOLIO?

One well known example is Ethan Allen Interiors, a furniture retailer that
is experiencing accelerating earnings growth. We also added Herman Miller, an
office furniture supplier, for the same reason. Our holdings in energy services,
which stood at 4.6% at the beginning of the period, grew to 13.2% at the end. We
saw a sell-off of energy stocks in January and February, after declining energy
prices fueled investor pessimism about oil exploration prospects. The underlying
business trends of many drilling and

Semiannual Report Management Q&A 3

related companies were still very strong and we saw prospects for earnings
acceleration well into 1997. As a result, we added several energy companies,
including drill pipe manufacturer Energy Ventures (EVI, Inc.). The company's
stock price climbed from approximately $28 when we bought it in February to $42
at the end of June.

WHAT OTHER STOCKS CONTRIBUTED TO PERFORMANCE?

Dell Computer's stock soared after a string of surprises regarding its
sales volume and profitability. The company is benefiting from a trend among
repeat computer buyers to buy directly from manufacturers rather than through a
computer retailer. Dell's stock price climbed 120% during the six-month period.
Telecommunications equipment maker Tellabs, Inc. saw its share price jump 48%
during the period. Its sales have been boosted by companies' need to manage
increasingly complex telecommunications networks.

On the downside, biotechnology stocks hurt performance because a
significant share of their present value derives from future products and
earnings. Investor sentiment during most of the period favored companies with
strong present earnings over those with strong future earnings potential.

DO YOU THINK THE REBOUND IN MID-CAP GROWTH STOCKS WILL CONTINUE?

The outperformance of large-cap stocks over the past year has coincided
with a period of better-than-average (and better-than-expected) earnings growth,
which we think is attributable to the surprisingly robust economy. For the past
two years, the largest stocks in the S&P 500 index have seemingly offered
everything an investor could desire: strong earnings growth, above-average
returns, low volatility and superior liquidity. To some extent, the
extraordinary returns have also been self-perpetuating, as momentum-following
market participants have sold their underperforming stocks in order to buy the
large-cap leaders.

We think that a prolonged change in market leadership will probably begin
with a deteriorating outlook for earnings, and that change may not be too far
away. With the profit margins at large-cap companies already at historically
high levels, it seems probable that their earnings growth rates will decline
over the next few quarters. Some smaller companies will suffer the same
deterioration, but those that can buck the trend should attract growth-oriented
investors.

Whether the rebound in small- and mid-cap stocks is temporary or prolonged,
our approach is the same. We concentrate on keeping the fund well positioned
with investments in good, growing businesses with the strongest fundamental
outlook we can find. We don't have any control over the timing of how the market
reacts, but we can control our investment strategy and goals.

TOP TEN HOLDINGS % of fund investments
As of As of
6/30/97 12/31/96
Tellabs, Inc. 4.2% 4.6%
HBO & Co. 3.9% 3.4%
McAfee Associates, Inc. 3.4% 2.5%
Boeing Co. 3.0% 3.2%
Oxford Health Plans, Inc. 2.9% -
Tenet Healthcare Corp. 2.7% 1.9%
Vitesse Semiconductor Corp. 2.7% 3.8%
Solectron Corp. 2.6% -
EVI, Inc. 2.5% -
Stewart Enterprises, Inc. Cl A 2.4% 1.5%

TOP FIVE INDUSTRIES % of fund investments
As of As of
6/30/97 12/31/96
Energy Services 13.2% 4.6%
Computer Software & Services 10.0% 17.4%
Healthcare 9.2% 6.2%
Communications Equipment 8.9% 9.9%
Electrical & Electronic
Components 7.5% 5.3%

4 Management Q & A American Century Investments

SCHEDULE OF INVESTMENTS

JUNE 30, 1997 (UNAUDITED)

Shares Value
- -------------------------------------------------------------------------------
COMMON STOCKS
AEROSPACE & DEFENSE--3.0%
580,000 Boeing Co. $ 30,776,250
---------------
AUTOMOBILES & AUTO PARTS--1.9%
446,000 Tower Automotive, Inc.(1) 19,178,000
---------------
BIOTECHNOLOGY--2.1%
700,000 Centocor, Inc.(1) 21,721,875
---------------
BROADCASTING & MEDIA--1.6%
430,000 Jacor Communications, Inc.(1) 16,487,813
---------------
BUSINESS SERVICES & SUPPLIES--6.4%
350,000 ABR Information Services, Inc.(1) 10,128,125
440,000 Corrections Corp. of America(1) 17,490,000
320,000 PMT Services, Inc.(1) 4,870,000
275,000 Quintiles Transnational Corp.(1) 19,129,688
300,000 Robert Half International, Inc.(1) 14,118,750
---------------
65,736,563
---------------
COMMUNICATIONS EQUIPMENT--8.9%
720,000 ADC Telecommunications, Inc.(1) 24,075,000
270,000 Davox Corp.(1) 9,644,062
920,000 PairGain Technologies, Inc.(1) 14,288,750
780,000 Tellabs, Inc.(1) 43,533,750
---------------
91,541,562
---------------
COMMUNICATIONS SERVICES--0.3%
100,000 Cincinnati Bell Inc. 3,150,000
---------------
COMPUTER PERIPHERALS--2.8%
425,000 Encad, Inc.(1) (2) 17,717,187
516,000 Quantum Corp.(1) 10,497,375
---------------
28,214,562
---------------
COMPUTER SOFTWARE & SERVICES--10.0%
378,700 Ceridian Corp.(1) 16,000,075
575,000 HBO & Co. 39,603,125
550,000 McAfee Associates, Inc.(1) 34,684,375
248,600 Veritas Software Corp.(1) 12,461,075
---------------
102,748,650
---------------
COMPUTER SYSTEMS--1.6%
140,000 Dell Computer Corp.(1) 16,436,875
---------------

Shares Value
- -------------------------------------------------------------------------------
ELECTRICAL & ELECTRONIC
COMPONENTS--7.5%
265,000 Lattice Semiconductor Corp.(1) $ 14,955,937
220,000 Sawtek Inc.(1) 7,425,000
380,000 Solectron Corp.(1) 26,623,750
850,000 Vitesse Semiconductor Corp.(1) (2) 27,757,812
---------------
76,762,499
---------------
ENERGY (SERVICES)--13.2%
140,000 Diamond Offshore Drilling(1) 10,937,500
600,000 EVI, Inc.(1) 25,200,000
1,050,000 Marine Drilling Companies, Inc.(1) 20,540,625
500,000 Petroleum Geo-Services A/S ADR(1) 24,437,500
350,000 Santa Fe International Corporation(1) 11,900,000
440,000 Seacor Holdings, Inc.(1) (2) 23,017,500
440,000 Tidewater Inc. 19,360,000
---------------
135,393,125
---------------
ENVIRONMENTAL SERVICES--3.6%
610,000 Browning-Ferris Industries, Inc. 20,282,500
210,000 USA Waste Services, Inc.(1) 8,111,250
213,400 United Waste Systems, Inc.(1) 8,736,063
---------------
37,129,813
---------------
FOOD & BEVERAGE--1.2%
200,000 Interstate Bakeries Corp. 11,862,500
---------------
FURNITURE & FURNISHINGS--3.8%
330,000 Ethan Allen Interiors Inc. 18,810,000
570,000 Miller (Herman), Inc. 20,448,750
---------------
39,258,750
---------------
HEALTHCARE--9.2%
475,000 Curative Health Services, Inc.(1) (2) 13,745,313
420,000 Oxford Health Plans, Inc.(1) 30,148,125
640,000 Quorum Health Group, Inc.(1) 22,800,000
950,000 Tenet Healthcare Corp.(1) 28,084,375
---------------
94,777,813
---------------
LEISURE--5.5%
600,000 Callaway Golf Co. 21,300,000
560,000 Doubletree Corp.(1) 23,012,500
210,000 HFS, Inc.(1) 12,180,000
---------------
56,492,500
---------------

See Notes to Financial Statements

Semiannual Report Schedule of Investments 5

SCHEDULE OF INVESTMENTS

JUNE 30, 1997 (UNAUDITED)

Shares Value
- -------------------------------------------------------------------------------
MACHINERY & EQUIPMENT--1.3%
380,000 Dynatech Corp.(1) $ 13,585,000
---------------
PERSONAL SERVICES--2.5%
600,000 Stewart Enterprises, Inc. Cl A 25,125,000
---------------
PHARMACEUTICALS--2.0%
426,000 Jones Medical Industries, Inc. 20,235,000
---------------
RETAIL (APPAREL)--2.5%
385,200 Polo Ralph Lauren Corp. Cl A(1) 10,544,850
470,000 Ross Stores, Inc. 15,348,437
---------------
25,893,287
---------------
RETAIL (GENERAL MERCHANDISE)--1.7%
500,000 Consolidated Stores Corp.(1) 17,375,000
---------------
RETAIL (SPECIALTY)--3.3%
250,000 Corporate Express, Inc.(1) 3,601,563
230,000 Home Depot, Inc. 15,855,625
385,000 Lowe's Companies, Inc. 14,293,125
---------------
33,750,313
---------------

TOTAL COMMON STOCKS--95.9% 983,632,750
---------------
(Cost $815,378,743)

TEMPORARY CASH INVESTMENTS--4.1%
Repurchase Agreement, Goldman Sachs
& Co., Inc., (U.S. Treasury obligations),
in a joint trading account at 5.80%,
dated 6/30/97, due 7/1/97 (Delivery
value $42,406,831) 42,400,000
---------------
(Cost $42,400,000)

TOTAL INVESTMENT SECURITIES--100.0% $1,026,032,750
===============
(Cost $857,778,743)

See Notes to Financial Statements

NOTES TO SCHEDULE OF INVESTMENTS

ADR = American Depositary Receipt

(1) Non-income producing.

(2) Affiliated Company: represents ownership of at least 5% of the voting
securities of the issuer and is, therefore, an affiliate as defined in the
Investment Company Act of 1940. (See Note 4 in Notes to Financial
Statements for a summary of transactions for each issuer who is or was an
affiliate at or during the six months ended June 30, 1997.)

6 Schedule of Investments American Century Investments

<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES

JUNE 30, 1997 (UNAUDITED)

ASSETS
<S> <C>
Investment securities, at value (identified cost of $857,778,743) (Note 3)....................... $1,026,032,750

Cash ............................................................................................ 328,336

Receivable for investments sold.................................................................. 4,574,310

Dividends and interest receivable................................................................ 194,681
---------------
1,031,130,077
---------------

LIABILITIES
Payable for investments purchased................................................................ 5,547,650

Payable for capital shares redeemed.............................................................. 5,429,179

Accrued management fees (Note 2)................................................................. 841,523

Other liabilities................................................................................ 645
---------------
11,818,997
---------------

Net Assets Applicable to Outstanding Shares...................................................... $1,019,311,080
===============
CAPITAL SHARES, $0.01 PAR VALUE
Authorized....................................................................................... 500,000,000
===============
Outstanding...................................................................................... 105,475,067
===============

NET ASSET VALUE PER SHARE........................................................................ $ 9.66
===============

NET ASSETS CONSIST OF:
Capital (par value and paid-in surplus).......................................................... $ 909,899,628

Undistributed net investment loss................................................................ (3,341,214)

Accumulated net realized loss
from investments and foreign currency transactions.......................................... (55,501,341)

Net unrealized appreciation on investments and
translation of assets and liabilities
in foreign currencies (Note 3).............................................................. 168,254,007
---------------
$1,019,311,080
===============
See Notes to Financial Statements
</TABLE>

Semiannual Report Statement of Assets and Liabilities 7

STATEMENT OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)

INVESTMENT LOSS
INCOME:
Interest........................................................ $ 1,358,623

Dividends....................................................... 753,628
-------------
2,112,251
-------------
EXPENSES (NOTE 2):
Management fees................................................. 5,447,145

Directors' fees and expenses.................................... 6,320
-------------
5,453,465
-------------

NET INVESTMENT LOSS............................................. (3,341,214)
-------------

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 3)
Net realized loss on investments................................ (54,843,852)

Change in net unrealized appreciation on investments............ 12,253,136
-------------

NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS................. (42,590,716)
-------------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS.......................................$ (45,931,930)
=============

See Notes to Financial Statements

8 Statement of Operations American Century Investments

<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS

Six Months Ended June 30, 1997 (Unaudited)
and Year Ended December 31, 1996

DECREASE IN NET ASSETS 1997 1996
OPERATIONS
<S> <C> <C>
Net investment loss................................................ $ (3,341,214) $ (8,513,694)

Net realized gain (loss) on investments and foreign
currency transactions......................................... (54,843,852) 32,772,249

Change in net unrealized appreciation on
investments and translation of assets and
liabilities in foreign currencies............................. 12,253,136 (86,371,388)
-------------- ---------------

Net decrease in net assets resulting from operations............... (45,931,930) (62,112,833)
-------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
From net realized gains from investment transactions............... (23,310,498) (165,281,584)
-------------- ---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold.......................................... 138,526,258 364,518,011

Proceeds from reinvestment of distributions........................ 23,310,498 165,281,584

Payments for shares redeemed....................................... (387,148,299) (449,663,781)
-------------- ---------------
Net increase (decrease) in net assets
from capital share transactions.................................... (225,311,543) 80,135,814
-------------- ---------------

Net decrease in net assets......................................... (294,553,971) (147,258,603)

NET ASSETS
Beginning of period................................................ 1,313,865,051 1,461,123,654
-------------- ---------------

End of period...................................................... $1,019,311,080 $1,313,865,051
============== ===============

Undistributed net investment loss.................................. $ (3,341,214) --
============== ===============
TRANSACTIONS IN SHARES OF THE FUND
Sold ................................................... 14,509,167 31,440,930

Issued in reinvestment of distributions............................ 2,633,955 16,949,976

Redeemed........................................................... (40,011,583) (41,183,203)
-------------- ---------------

Net increase (decrease)............................................ (22,868,461) 7,207,703
============== ===============
</TABLE>

See Notes to Financial Statements

Semiannual Report Statements of Changes in Net Assets 9

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1997 (UNAUDITED)

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES

ORGANIZATION--American Century Variable Portfolios, Inc., formerly TCI
Portfolios, Inc., (the Corporation) is registered under the Investment Company
Act of 1940 as an open-end diversified management investment company. American
Century VP Capital Appreciation, formerly TCI Growth, (the Fund) is one of the
five series of funds issued by the Corporation. The Fund's investment objective
is capital growth. The Fund seeks to achieve its investment objective by
investing primarily in common stocks that are considered by management to have
better-than-average prospects for appreciation. The following significant
accounting policies, related to the Fund, are in accordance with accounting
policies generally accepted in the investment company industry.

SECURITY VALUATIONS--Portfolio securities traded primarily on a principal
securities exchange are valued at the last reported sales price, or the mean of
the latest bid and asked prices where no last sales price is available.
Securities traded over-the-counter are valued at the mean of the latest bid and
asked prices or, in the case of certain foreign securities, at the last reported
sales price, depending on local convention or regulation. When valuations are
not readily available, securities are valued at fair value as determined in
accordance with procedures adopted by the Board of Directors.

Net realized and unrealized foreign currency exchange gains or losses
occurring during the holding period of investments are a component of realized
gain (loss) on investments and unrealized appreciation (depreciation) on
investments, respectively. During the six months ended June 30, 1997, the Fund
did not hold any securities denominated in foreign currencies. Therefore, there
were no realized or unrealized foreign currency exchange gains or losses for the
period.

10 Notes to Financial Statements American Century Investments

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1997 (UNAUDITED)

DISTRIBUTIONS TO SHAREHOLDERS--Distributions to shareholders are recorded
on the ex-dividend date. Distributions from net investment income and net
realized gains are declared and paid annually.

USE OF ESTIMATES--THE preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.

- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH RELATED PARTIES

- --------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS

Purchases and sales of investment securities, excluding short-term
investments, totaled $607,970,623 and $845,394,029, respectively.

As of June 30, 1997, accumulated net unrealized appreciation was
$167,781,952, based on the aggregate cost of investments of $858,250,798 for
federal income tax purposes. Accumulated net unrealized appreciation consisted
of unrealized appreciation of $188,332,404 and unrealized depreciation of
$20,550,452.

Semiannual Report Notes to Financial Statements 11

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1997 (UNAUDITED)

4. AFFILIATED COMPANY TRANSACTIONS

A summary of transactions for each issuer who is or was an affiliate at or
during the six months ended June 30, 1997, follows:

<TABLE>
Share June 30, 1997
Balance Purchase Sales Realized Share Market
12/31/96 Cost Cost Gain (Loss) Balance Value
ISSUER(1)
<S> <C> <C> <C> <C> <C> <C>
ClinTrials Inc. 1,050,000 -- $ 27,230,464 $ (13,278,989) -- --
Curative Health Services, Inc. 750,000 -- 7,004,753 883,620 475,000 $ 13,745,313
Encad, Inc. 700,000 -- 11,988,887 (2,445,266) 425,000 17,717,187
FPA Medical Management, Inc. 1,150,000 -- 23,327,800 (36,333) -- --
Leasing Solutions, Inc. 700,000 -- 20,239,641 (11,125,358) -- --
National TechTeam, Inc. 880,000 -- 22,790,557 (6,649,379) -- --
Seacor Holdings, Inc. 480,000 -- 2,242,050 (107,021) 440,000 23,017,500
Vitesse Semiconductor Corp. 1,100,000 -- 12,814,696 10,930,424 850,000(2) 27,757,812
---- ------------- ------------- ------------
-- $127,638,848 $(21,828,302) $82,237,812
==== ============= ============= ============

(1) None of the securities produced income during the period.

(2) Includes adjustments for shares received from stock split and/or stock
spinoff during the year.
</TABLE>

12 Notes to Financial Statements American Century Investments

<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS

For a Share Outstanding Throughout the Years Ended December 31 (except as noted)

1997(1) 1996 1995 1994 1993 1992
PER-SHARE DATA
Net Asset Value,
<S> <C> <C> <C> <C> <C> <C>
Beginning of Period........................ $10.24 $12.06 $9.21 $9.32 $8.47 $8.64
-------- -------- -------- -------- -------- --------
Income From
Investment Operations
Net Investment Income (Loss)........... (0.03) (0.06)(2) (0.02) 0.01 0.03 0.02

Net Realized and
Unrealized Gain (Loss) on
Investment Transactions................ (0.34) (0.40) 2.88 (0.12) 0.84 (0.14)
-------- -------- -------- -------- -------- --------
Total From Investment Operations....... (0.37) (0.46) 2.86 (0.11) 0.87 (0.12)
-------- -------- -------- -------- -------- --------
Distributions
From Net
Investment Income...................... -- -- (0.01) -- (0.02) (0.05)

From Net Realized Gains
on Investment Transactions............. (0.21) (1.36) -- -- -- --
-------- -------- -------- -------- -------- --------
Total Distributions.................... (0.21) (1.36) (0.01) -- (0.02) (0.05)
-------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period.............................. $9.66 $10.24 $12.06 $9.21 $9.32 $8.47
======== ======== ======== ======== ======== ========
Total Return(3)........................ (3.46)% (4.32)% 31.10% (1.17)% 10.30% (1.33)%

RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets...................... 1.00%(4) 1.00% 0.99% 1.00% 1.00% 1.00%

Ratio of Net Investment Income
(Loss) to Average Net Assets...............(0.61)%(4) (0.59)% (0.23)% 0.11% 0.35% 0.32%

Portfolio Turnover Rate.................... 58% 182% 147% 115% 87% 135%
Average Commission Paid per

Investment Security Traded................. $0.0306 $0.0326 $0.0370 --(5) --(5) --(5)

Net Assets, End
of Period (in thousands)...................$1,019,311 $1,313,865 $1,461,124 $1,002,577 $755,689 $415,005

(1) Six months ended June 30, 1997 (unaudited).

(2) Computed using average shares outstanding throughout the period.

(3) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.

(4) Annualized.

(5) Disclosure of average commission paid per investment security traded was
not required prior to the year ended December 31, 1995.
</TABLE>

Semiannual Report Financial Highlights 13

NOTES

14 Notes American Century Investments

NOTES

Semiannual Report Notes 15

BACKGROUND INFORMATION

INVESTMENT PHILOSOPHY AND POLICIES

The philosophy behind American Century's growth funds focuses on three
important principles. Chiefly, the funds seek to own successful companies, which
we define as those whose earnings and revenues are growing at accelerating
rates. In addition, we attempt to keep the funds fully invested, regardless of
short-term market activity. Experience has shown that market gains can occur in
unpredictable spurts and that missing even some of those opportunities may
significantly limit potential for gain. Finally, American Century funds are
managed by teams, rather than by one "star" manager. We believe this enables us
to make better, more consistent management decisions.

VP CAPITAL APPRECIATION seeks capital growth over time by investing in
growth companies across all capitalization ranges. Since mid-1996, VP Capital
Appreciation has invested mainly in the securities of medium-sized firms with
accelerating growth. Such a strategy results in volatility over the short term
and offers the potential for long-term growth.

COMPARATIVE INDICES

The indices listed below are used in the report to serve as a comparison
for the performance of the fund. They are not investment products available for
purchase.

The S&P 500 is a capitalization-weighted index of the stocks of 500
publicly-traded U.S. companies that are considered leading firms in leading
industries. Created by Standard & Poor's Corporation, the index is viewed as a
broad measure of U.S. stock performance.

The S&P MIDCAP 400 is an index created by Standard & Poor's Corporation of
the 400 most influential companies not included in the S&P 500. It is considered
to represent the performance of mid-capitalization stocks generally. The index
was created in March 1994. Data presented for prior periods have been provided
by S&P.

The S&P MidCap 400/BARRA Growth is an index created by Standard & Poor's
Corporation and BARRA. The index divides the S&P 400 into two mutually exclusive
groups based on price/book ratios. The half of the S&P 400 with higher ratios
falls into the Growth index, while a value index tracks the performance of the
other half. Similar growth and value indices are available for the S&P 500.

FUND MANAGEMENT TEAM LEADERS
Portfolio Manager Glenn Fogle
Portfolio Manager John Seitzer

16 Background Information American Century Investments

GLOSSARY

RETURNS

o TOTAL RETURN figures show the overall percentage change in the value of a
hypothetical investment in the fund and assume that all of the fund's
distributions are reinvested.

PORTFOLIO STATISTICS

o NUMBER OF COMPANIES-- the number of different companies held by a fund on a
given date.

TYPES OF STOCKS

o MEDIUM-CAPITALIZATION ("MID-CAP") STOCKS--generally considered to be stocks of
companies with a market capitalization (the total value of a company's
outstanding stock) of between $1 billion and $5 billion. These tend to be the
stocks that make up the S&P MidCap 400.

o VALUE STOCKS-- generally considered to be stocks that are purchased because
they are relatively inexpensive. These stocks are typically characterized by low
P/E ratios.

STATISTICAL TERMINOLOGY

Semiannual Report Glossary 17

[american century logo]
American
Century(sm)

P.O. Box 419385
Kansas City, Missouri
64141-6385

Investor Services:
1-800-345-3533 or 816-531-5575

Automated Information Line:
1-800-345-8765

Telecommunications Device for the Deaf:
1-800-345-1833 or 816-444-3485

Fax: 816-340-4360

Internet: www.americancentury.com

American Century Variable Portfolios, Inc.

Investment Manager
American Century Investment Management, Inc.
Kansas City, Missouri

American Century Investment Services, Inc.

9707 [recycled logo]
SH-BKT-9288 Recycled
<PAGE>
SEMIANNUAL REPORT

[american century logo]
American
Century(sm)

JUNE 30, 1997

AMERICAN CENTURY
VARIABLE
PORTFOLIOS, INC.

VP Balanced

TABLE OF CONTENTS

Our Message to You..................................1
Performance & Portfolio Information.................2
Management Q & A....................................3
Schedule of Investments.............................5
Statement of Assets and Liabilities.................9
Statement of Operations............................10
Statements of Changes in Net Assets................11
Notes to Financial Statements......................12
Financial Highlights...............................14
Background Information
Investment Philosophy and Policies............16
Comparative Indices...........................16
Fund Management Team Leaders..................16
Glossary...........................................17

We welcome your comments or questions about this report.
See the back cover for ways to contact us by mail, phone or e-mail.

American Century Investments

OUR MESSAGE TO YOU

[photo of James E. Stowers, Jr. and James E. Stowers III]

During the six months ended June 30, 1997, American Century VP Balanced
Fund (formerly TCI Balanced) met its investment objective of providing capital
growth with less volatility than funds that are 100% invested in growth stocks.
In the Manage-ment Q&A that follows, the investment team discusses the fund's
performance and strategy during the period.

In addition to building our fund family, we have also been strengthening
our corporate team. In June, Bill Lyons, American Century's chief operating
officer, became president, assuming full responsibility for the company's
day-to-day operations. This change will enable us to spend more time developing
and refining new investment technologies and tools that build on and leverage
the proprietary system we pioneered 25 years ago. One of our goals is to ensure
that we continue to evolve and innovate -- building the investment tools today
that will lead us and our investors to success in the next century.

In closing, we want to reassure you that American Century remains committed
to serving your investment needs first and foremost. Thank you for your trust
and confidence.

Sincerely,

/s/James E. Stowers, Jr. /s/James E. Stowers III
James E. Stowers, Jr. James E. Stowers III
Chairman of the Board and Founder Chief Executive Officer

Semiannual Report Our Message to You 1

PERFORMANCE & PORTFOLIO INFORMATION

AVERAGE ANNUAL RETURNS
6 MONTHS 1 YEAR 3 YEARS 5 YEARS LIFE OF
FUND(1)
TOTAL RETURNS AS OF JUNE 30, 1997
VP Balanced............8.92% 16.18% 15.19% 10.76% 10.90%
Blended index.........13.49% 23.70% 20.30% 14.45% 13.81%

(1) The fund's inception date was 5/1/91.

See pages 16 and 17 for more information about comparative indices and returns.

[line graph - data below]

GROWTH OF $10,000 OVER LIFE OF FUND
$10,000 investment made 5/1/91

Value on 6/30/97
Blended index $22,921
VP Balanced $18,918

Date VP Balanced Blended index
5/1/91 $10,000 $10,000
12/31/91 $12,554 $11,241
6/30/92 $11,349 $11,329
12/31/92 $11,795 $12,077
6/30/93 $12,246 $12,729
12/31/93 $12,702 $13,231
6/30/94 $12,379 $12,823
12/31/94 $12,780 $13,238
6/30/95 $14,388 $15,375
12/31/95 $15,479 $17,084
6/30/96 $16,283 $18,206
12/31/96 $17,369 $19,901
6/30/97 $18,918 $22,921

Past performance does not guarantee future results. Investment return and
principal value will fluctuate, and redemption value may be more or less than
original cost.

The line representing the fund's total return includes operating expenses
(such as transaction costs and management fees) that reduce returns, while the
return line of the blended index does not.

[pie chart]

ASSET ALLOCATION (as of June 30, 1997)

Common Stocks 59%
Corporate Bonds 23%
U.S. Treasury Securities 10%
Mortgage- & Asset-Backed Securities 5%
Other 3%

See Glossary on page 17 for investment terms.

2 Performance & Portfolio Information American Century Investments

MANAGEMENT Q & A

An interview with Bruce Wimberly and Jeff Houston, portfolio managers on
the VP Balanced equity and fixed-income investment teams.

How did the fund perform for the six months ended June 30, 1997?

The fund's total return was 8.92%, reflecting the combined performance of
the fund's stock portfolio (60% of assets) and bond portfolio (40% of assets).
VP Balanced met its goal of providing capital growth with less volatility than
funds that are 100% invested in growth stocks. However, it lagged its benchmark,
a blended index, which posted a 13.49% total return for the period. This blended
index combines the S&P 500 and the Lehman Intermediate Government/ Corporate
Index in proportion to the asset mix of the fund. For the 12 months ended June
30, 1997, VP Balanced was up 16.18%, compared to the blended index's 23.70%
gain.

What explains the fund's relative performance against its benchmark?

It was affected primarily by the fact that the fund's small- and mid-cap
stock holdings were out of favor. For the period, the fund's stock portfolio
returned 7.79%, compared with 20.61% for the S&P 500, while the bond portfolio
returned 1.11%, compared to the 2.83% return posted by its benchmark index, the
Lehman Intermediate Government/Corporate Index.

The performance of the blended index was heavily influenced by the
exceptionally strong performance of the S&P 500, which represents 60% of the
blended index. The S&P 500 reflects the performance of the U.S. stock market
generally, but it has a large-capitalization bias. During the first quarter,
large-cap stocks generally outperformed the shares of mid- and small-cap
companies. This market trend worked against the fund, since we had purchased
some attractive smaller-cap stocks late last year in an effort to improve the
fund's performance. The underperformance of these stocks reduced the fund's
performance below that of its benchmark.

What specific stocks or sectors of the market had the greatest impact on
the performance of the fund's stock portfolio?

Some energy-related and technology companies proved disappointing. In the
energy sector, VP Balanced was heavily weighted in the shares of several
oil-drilling companies that had demonstrated impressive growth and whose stock
appreciated steadily during the previous six months. We held onto these stocks
because we expected to continue to benefit from increasing demand for new oil
supplies. However, the stocks began sliding in mid-January as oil and gas prices
fell.

We continue to like certain sectors within technology, given their strong
fundamental results over the period. However, as with many industries, there
were pockets

TOP TEN EQUITY HOLDINGS % of equity portfolio
As of As of
6/30/97 12/31/96
Tyco International Ltd. 5.1% --
Warner-Lambert Co. 4.7% 3.5%
General Electric Co. 4.1% 2.9%
Pfizer, Inc. 3.6% 2.7%
Lilly (Eli) & Co. 3.5% 2.4%
Phillips Electronics N.V. 3.3% --
Intel Corp. 3.2% 5.2%
Clear Channel
Communications, Inc. 3.2% 1.1%
Merck & Co., Inc. 3.0% 2.5%
Gillette Company 2.9% --

TOP FIVE INDUSTRIES % of equity portfolio
As of As of
6/30/97 12/31/96
Pharmaceuticals 20.5% 17.9%
Diversified Companies 13.7% 2.9%
Electrical & Electronic
Components 10.3% 6.9%
Banking 8.0% 6.3%
Energy (Production & Marketing)7.4% --

Semiannual Report Management Q & A 3

MANAGEMENT Q & A

of weakness. Despite short-term price volatility, we remain committed to those
companies that can demonstrate a sustained level of improving growth. We believe
that in the long run, prices follow earnings.

What changes are you making to the fund's stock portfolio?

We've increased the portfolio's market capitalization by adding more
quality mid-cap and large-cap stocks, which offer growth with a measure of
stability. Companies that continue to appeal to us tend to have the following
characteristics: dominant market share, pricing power, global reach, good
capital management and strong management teams. A few examples include Clear
Channel Communications, a leading consolidator of radio and TV companies;
Proctor & Gamble, a worldwide provider of household products; and Sun-America, a
leader in retirement products. We also are reducing our concentrations in some
sectors to provide broader diversification to the portfolio and reduce the
impact of the fund's more volatile holdings.

How did the fund's bond portfolio perform? What factors had an impact on
performance?

The bond portion of the fund performed about as well as could be expected
in an unstable period for bonds. We assumed a cautious posture, keeping the
portfolio's duration at or below the fund's neutral level for most of the
period. The fund's duration was a benefit in the somewhat volatile interest rate
environment of the past year. Rather than try to guess the direction of interest
rates, we took a steady, conservative approach to managing the bond portion of
the fund.

We also continued to hold our position in mortgage-backed securities, which
were the top-performing fixed-income sector for the period. Mortgage-backed
securities, with their relatively high yields, perform best when interest rates
are flat or moving within a fairly narrow range, as they were for most of the
period.

What's your outlook for the fund's bond portfolio?

It is uncertain if the Federal Reserve's interest rate hike in March was an
isolated event or the first in a series of moves. All indicators seem to point
to continued strong economic progress. Inflation has remained tame, but we are
skeptical that prices can remain subdued with the economy growing at an annual
rate of over 4%. Given that, we will maintain our cautious posture and continue
to conservatively manage the portfolio's duration and average maturity.

VP BALANCED'S FIXED-INCOME PORTFOLIO
As of As of
6/30/97 12/31/96

Portfolio Sensitivity to Interest Rates
Weighted Average Maturity 6.6 years 6.0 years
Duration4.2 years 4.0 years

Portfolio Credit Quality % of fixed income portfolio
(S&P Ratings)
AAA 39% 46%
AA 14% 7%
A 28% 32%
BBB 19% 15%
--- ---
100% 100%
===== =====

See Glossary on page 17.

4 Management Q & A American Century Investments

SCHEDULE OF INVESTMENTS

JUNE 30, 1997 (UNAUDITED)

Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS

AEROSPACE & DEFENSE--2.3%
54,800 BE Aerospace, Inc.(1) $ 1,729,625
45,400 United Technologies Corp. 3,768,200
---------
5,497,825
BANKING--4.7%
55,800 BankAmerica Corp. 3,602,587
26,400 Charter One Financial, Inc. 1,423,950
32,080 Chase Manhattan Corp. 3,113,765
25,900 Citicorp 3,122,569
---------
11,262,871
----------
BIOTECHNOLOGY--0.3%
53,700 Bio-Technology General Corp.(1) 726,628
-------

BROADCASTING & MEDIA--3.5%
72,800 Clear Channel Communications, Inc.(1) 4,477,200
104,600 Outdoor Systems, Inc.(1) 3,987,875
---------
8,465,075
---------
BUILDING & HOME IMPROVEMENTS--0.8%
42,000 American Standard Companies Inc.(1) 1,879,500
---------

CHEMICALS & RESINS--0.5%
27,500 Ecolab, Inc. 1,313,125
---------

COMMUNICATIONS EQUIPMENT--0.9%
13,900 Motorola, Inc. 1,056,400
40,200 Westell Technologies, Inc.(1) 1,006,256
---------
2,062,656
---------
COMPUTER PERIPHERALS--0.4%
29,600 Western Digital Corp.(1) 936,100
-------

COMPUTER SOFTWARE & SERVICES--3.3%
35,700 BMC Software, Inc.(1) 1,979,119
69,800 Compuware Corp.(1) 3,341,675
43,000 Electronics for Imaging, Inc.(1) 2,030,406
13,300 Oracle Systems Corp.(1) 669,572
-------
8,020,772
---------
COMPUTER SYSTEMS--1.1%
13,700 Compaq Computer Corp.(1) 1,359,725
35,500 Sun Microsystems, Inc.(1) 1,321,266
---------
2,680,991
---------

Shares Value
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS--3.9%
36,100 Avon Products, Inc. $ 2,547,306
43,800 Gillette Company 4,150,050
19,600 Procter & Gamble Co. (The) 2,768,500
---------
9,465,856
---------
DIVERSIFIED COMPANIES--7.2%
87,800 General Electric Co. 5,739,925
35,000 Honeywell Inc. 2,655,625
102,400 Tyco International Ltd. 7,123,200
55,200 U.S. Industries, Inc.(1) 1,966,500
---------
17,485,250
---------
ELECTRICAL & ELECTRONIC
COMPONENTS--6.3%
32,600 Altera Corp.(1) 1,647,319
31,800 Intel Corp. 4,502,681
13,300 Johnson Controls, Inc. 546,131
34,300 KLA Instruments Corp.(1) 1,673,197
64,900 LSI Logic Corp.(1) 2,076,800
64,500 Phillips Electronics N.V. 4,635,937
---------
15,082,065
---------
ENERGY (PRODUCTION & MARKETING)--2.8%
68,000 Falcon Drilling Co. Inc.(1) 3,918,500
53,900 Global Marine Inc.(1) 1,253,175
85,800 Tubos de Acero de Mexico,
S.A. ADR(1) 1,581,938
---------
6,753,613
---------
ENERGY (SERVICES)--1.5%
27,700 Diamond Offshore Drilling, Inc.(1) 2,164,062
35,600 Energy Ventures, Inc.(1) 1,495,200
---------
3,659,262
---------
ENVIRONMENTAL SERVICES--0.8%
50,100 USA Waste Services, Inc.(1) 1,935,112
---------

FINANCIAL SERVICES--0.5%
26,700 Federal National Mortgage
Association 1,164,788
---------
FOOD & BEVERAGE--0.7%
53,800 Panamerican Beverages Inc. 1,768,675
---------

HEALTHCARE--0.8%
31,200 Cardinal Health, Inc. 1,786,200
---------

See Notes to Financial Statements

Semiannual Report Schedule of Investments 5

SCHEDULE OF INVESTMENTS

JUNE 30, 1997 (UNAUDITED)

Shares/Principal Amount Value
- --------------------------------------------------------------------------------
INSURANCE--2.3%
58,900 Conseco Inc. $ 2,179,300
66,000 SunAmerica, Inc. 3,217,500
---------
5,396,800
---------
LEISURE--0.5%
34,100 Callaway Golf Co. 1,210,550
---------

PHARMACEUTICALS--12.0%
27,900 American Home Products Corp. 2,134,350
58,000 Johnson & Johnson 3,733,750
44,800 Lilly (Eli) & Co. 4,897,200
40,300 Merck & Co., Inc. 4,171,050
1,386 Novartis ORD 2,216,233
42,800 Pfizer, Inc. 5,114,600
52,900 Warner-Lambert Co. 6,572,825
---------
28,840,008
---------
RETAIL (APPAREL)--0.2%
8,500 Gucci Group N.V. 547,188
-------

TEXTILES & APPAREL--1.3%
69,400 Samsonite Corp.(1) 3,066,613
---------

TOTAL COMMON STOCKS--58.6% 141,007,523
-----------
(Cost $104,307,935)

U.S. TREASURY SECURITIES
$2,650,000 U.S. Treasury Notes,
6.125%, 3/31/98 2,659,116
2,000,000 U.S. Treasury Notes,
6.125%, 5/15/98 2,006,260
2,000,000 U.S. Treasury Notes,
6.00%, 9/30/98 2,002,500
2,000,000 U.S. Treasury Notes,
6.375%, 5/15/99 2,010,620
1,000,000 U.S. Treasury Notes,
5.875%, 2/15/00 992,500
1,000,000 U.S. Treasury Notes,
6.375%, 5/15/00 1,004,060
1,000,000 U.S. Treasury Notes,
6.125%, 9/30/00 995,630
500,000 U.S. Treasury Notes,
5.75%, 10/31/00 492,190
825,000 U.S. Treasury Notes,
7.75%, 2/15/01 863,412

Principal Amount Value
- --------------------------------------------------------------------------------
$ 750,000 U.S. Treasury Notes,
6.625%, 4/30/02 $ 757,035
2,750,000 U.S. Treasury Notes,
6.50%, 5/31/02 2,761,169
1,000,000 U.S. Treasury Notes,
5.875%, 2/15/04 969,060
2,400,000 U.S. Treasury Notes,
7.25%, 5/15/04 2,502,000
1,200,000 U.S. Treasury Notes,
5.875%, 11/15/05 1,148,628
1,450,000 U.S. Treasury Bonds,
7.625%, 2/15/25 1,587,300
500,000 U.S. Treasury Bonds,
7.625%, 2/15/27 489,220
---------
TOTAL U.S. TREASURY SECURITIES--9.6% 23,240,700
---------
(Cost $23,243,164)

MORTGAGE-BACKED SECURITIES(2)
1,473,238 FNMA Pool #248679,
5.50%, 12/1/08 1,400,328
1,719,813 FNMA Pool #250627,
8.00%, 7/1/26 1,761,621
1,927,498 GNMA Pool #002202,
7.00%, 4/20/26 1,889,333
---------
TOTAL MORTGAGE-BACKED SECURITIES--2.1% 5,051,282
---------
(Cost $5,016,267)

ASSET-BACKED SECURITIES(2)
1,000,000 FNMA Whole Loan, Series 1995-W1,
Class A6, 8.10%, 4/25/25 1,038,140
1,000,000 First Merchants Auto Receivables
Corp., Series 1996-B, Class A2,
6.80%, 5/15/01 1,011,390
2,000,000 NationsBank Auto Owner Trust,
Series 1996-A, Class B1,
6.75%, 6/15/01 2,020,660
2,000,000 Union Acceptance Corp.,
Series 1996-D, Class A3,
6.30%, 1/8/04 1,977,780
1,250,000 United Companies Financial Corp.,
Series 1996-D1, Class A4,
6.776%, 2/15/16 1,244,288
1,000,000 United Companies Financial Corp.,
Series 1996-D1, Class A5,
6.918%, 10/15/18 991,590
---------
TOTAL ASSET-BACKED SECURITIES--3.4% 8,283,848
---------
(Cost $8,246,293)

See Notes to Financial Statements

6 Schedule of Investments American Century Investments

SCHEDULE OF INVESTMENTS

JUNE 30, 1997 (UNAUDITED)

Principal Amount Value
- --------------------------------------------------------------------------------
CORPORATE BONDS

AUTOMOBILES & AUTO PARTS--1.0%
$1,500,000 Ford Motor Credit Corp.,
6.75%, 5/15/05 $ 1,470,000
1,000,000 General Motors Corp.,
7.00%, 6/15/03 1,005,000
---------
2,475,000
---------
BANKING--6.0%
1,700,000 ABN Amro Bank NV (Chicago),
7.125%, 6/18/07 1,704,250
1,000,000 Capital One Financial Corp.,
8.125%, 3/1/00 1,026,250
1,000,000 Chase Manhattan Corp.,
8.80%, 8/1/97 1,000,000
1,750,000 Corestates Capital Corp.,
5.875%, 10/15/03 1,655,937
1,750,000 First Bank System Inc.,
7.625%, 5/1/05 1,809,062
1,000,000 First Union Corp.,
8.77%, 11/15/04 1,043,750
1,500,000 MBNA Corp.,
6.875%, 10/1/99 1,511,250
1,000,000 National Westminster Bank PLC,
7.75%, 10/16/07 1,031,250
1,300,000 NationsBank Capital Trust I,
VRN, 6.36641%, 7/15/97, resets
quarterly off the 3-month LIBOR
plus 0.55% with no caps,
final maturity 1/15/27 1,265,303
1,000,000 NationsBank Corp.,
6.875%, 2/15/05 988,750
1,500,000 Santander Financial Issuances Ltd.,
7.00%, 4/1/06 1,485,000
---------
14,520,802
---------
COMMUNICATIONS SERVICES--1.5%
1,000,000 GTE Southwest, 5.82%, 12/1/99 992,500
500,000 Tele-Communications, Inc.,
8.25%, 1/15/03 513,125
2,050,000 WorldCom, Inc., 7.55%, 4/1/04 2,088,438
---------
3,594,063
---------
DIVERSIFIED COMPANIES--0.4%
1,000,000 Hanson Overseas BV,
6.75%, 9/15/05 978,750
---------

Principal Amount Value
- --------------------------------------------------------------------------------
FINANCIAL SERVICES--6.2%
$1,500,000 Associates Corp., N.A.,
6.375%, 10/15/02 $ 1,477,500
1,000,000 Associates First Capital Corp.,
6.75%, 7/15/01 1,002,500
1,000,000 First USA, Inc., 7.00%, 8/20/01 1,008,750
1,500,000 Lehman Brothers Holdings Inc.,
6.625%, 11/15/00 1,492,500
1,000,000 Money Store Inc. (The),
8.05%, 4/15/02 1,016,250
1,750,000 Norwest Financial, Inc.,
6.25%, 11/1/02 1,721,563
1,700,000 Price REIT, Inc. (The),
7.25%, 11/1/00 1,717,000
1,000,000 Price REIT, Inc. (The), 7.125%,
6/15/04 993,750
1,250,000 Salomon Brothers Inc.,
6.50%, 3/1/00 1,243,750
600,000 Salomon Brothers Inc.,
7.30%, 5/15/02 605,250
1,000,000 Travelers/Aetna Property
Casualty Corp., 6.75%, 4/15/01 1,001,250
1,750,000 Wharf International Finance Ltd.,
7.625%, 3/13/07 (Acquired
3/6/97, Cost $1,736,158)(3) 1,745,625
---------
15,025,688
---------
INDUSTRIAL EQUIPMENT & MACHINERY--0.6%
1,500,000 Anixter International Inc.,
8.00%, 9/15/03 1,535,625
---------

INSURANCE--2.2%
1,200,000 Aetna Services Inc.,
6.75%, 8/15/01 1,203,000
675,000 Delphi Financial Group, Inc.,
9.31%, 3/25/27 692,719
1,000,000 Nationwide Mutual Insurance Co.,
6.50%, 2/15/04 (Acquired 2/9/96,
Cost $1,008,420)(3) 966,250
1,000,000 Underwriters Reinsurance Co.,
7.875%, 6/30/06 (Acquired
8/6/96, Cost $1,031,200)(3) 1,037,500
1,250,000 Zurich Capital Trust I, 8.376%,
6/1/37 (Acquired 5/28/97
through 6/11/97,
Cost $1,265,410)(3) 1,296,875
---------
5,196,344
---------

See Notes to Financial Statements

Semiannual Report Schedule of Investments 7

SCHEDULE OF INVESTMENTS

JUNE 30, 1997 (UNAUDITED)

Principal Amount Value
- --------------------------------------------------------------------------------
MEDIA & BROADCASTING--0.9%
$1,000,000 Time Warner Inc., 8.11%, 8/15/06 $ 1,041,250
1,000,000 Time Warner Inc., 6.85%, 1/15/26 993,750
-------
2,035,000
---------
METALS & MINING--0.6%
1,350,000 Barrick Gold Corp., 7.50%, 5/1/07 1,380,375
---------

REAL ESTATE--0.5%
1,200,000 Spieker Properties, Inc.,
6.80%, 12/15/01 1,194,000
---------

RETAIL (GENERAL MERCHANDISE)--0.4%
1,000,000 Sears, Roebuck & Co., MTN,
7.12%, 6/4/04 1,013,750
---------

TOBACCO PRODUCTS--1.4%
2,000,000 Philip Morris Companies Inc.,
6.80%, 12/1/03 1,962,500
1,250,000 Philip Morris Companies Inc.,
6.95%, 6/1/06 1,256,250
---------
3,218,750
---------

UTILITIES--1.1%
1,000,000 Kansas Power & Light Co.,
8.875%, 3/1/00 1,052,500
1,700,000 Pacific Gas & Electric Co.,
Series 93C, 6.25%, 8/1/03 1,649,000
---------
2,701,500
---------
TOTAL CORPORATE BONDS--22.8% 54,869,647
---------
(Cost $54,887,768)

SOVEREIGN GOVERNMENTS & AGENCIES
1,500,000 Korea Electric Power,
6.375%, 12/1/03 1,436,250
2,000,000 Province of Quebec,
6.50%, 1/17/06 1,922,500
---------
TOTAL SOVEREIGN GOVERNMENTS
& AGENCIES--1.4%
3,358,750
---------
(Cost $3,499,302)

Principal Amount Value
- --------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS--2.1%
Repurchase Agreement, Goldman Sachs & Co.,
(U.S. Treasury obligations), in a joint trading
account at 5.80%, dated 6/30/97,
due 7/1/97 (Delivery value $5,000,806) $ 5,000,000
---------
(Cost $5,000,000)

TOTAL INVESTMENT SECURITIES--100.0% $240,811,750
(Cost $204,200,729) ============

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Contract Settlement Unrealized
to Sell Date Value Gain
2,020,892 CHF 7/31/97 $1,389,837 $19,696
========== =======
(Value on Settlement Date $1,409,533)

NOTES TO SCHEDULE OF INVESTMENTS

ADR = American Depositary Receipt
CHF = Swiss Franc
FNMA = Federal National Mortgage Association
GNMA = Government National Mortgage Association
LIBOR = London Interbank Offered Rate
MTN = Medium Term Note
ORD = Foreign Ordinary Share
resets = The frequency with which a fixed-income security's coupon changes,
based on current market conditions or an underlying index. The more
frequently a security resets, the less risk the investor is taking that the
coupon will vary significantly from current market rates.
VRN = Variable Rate Note. Interest reset date is indicated and used
in calculating the weighted average portfolio maturity. Rate
shown is effective June 30, 1997.
(1) Non-income producing.
(2) Final maturity indicated. Expected remaining maturity used for purposes of
calculating the weighted average portfolio maturity.
(3) Security was purchased under Rule 144A of the Securities Act of 1933 and,
unless registered under the Act or exempted from registration, may only be
sold to qualified institutional investors. The aggregate value of
restricted securities at June 30, 1997, was $5,046,250, which represented
2.1% of net assets.

See Notes to Financial Statements

8 Schedule of Investments American Century Investments

<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES

JUNE 30, 1997 (UNAUDITED)

ASSETS
<S> <C>
Investment securities, at value (identified cost of $204,200,729) (Note 3)...............$240,811,750
Cash ........................................................................................836,296
Receivable for forward foreign currency exchange contracts.....................................19,696
Receivable for investments sold.............................................................1,555,199
Dividends and interest receivable...........................................................1,305,016
----------
244,527,957
-----------

LIABILITIES
Payable for investments purchased...........................................................1,062,331
Payable for capital shares redeemed...........................................................617,185
Accrued management fees (Note 2)..............................................................195,910
Other liabilities.................................................................................153
---------
1,875,579
---------
Net Assets Applicable to Outstanding Shares..............................................$242,652,378
============

CAPITAL SHARES, $0.01 PAR VALUE
Authorized................................................................................200,000,000
===========
Outstanding................................................................................31,297,077
===========

Net Asset Value Per Share.................................................................$ 7.75
============

NET ASSETS CONSIST OF:
Capital (par value and paid-in surplus)..................................................$199,290,694
Undistributed net investment income.........................................................1,315,432
Accumulated net realized gain from investments and foreign currency transactions............5,416,064
Net unrealized appreciation on investments and translation of
assets and liabilities in foreign currencies (Note 3).................................36,630,188
----------
$242,652,378
============
</TABLE>
See Notes to Financial Statements

Semiannual Report Statement of Assets and Liabilities 9

STATEMENT OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)

INVESTMENT INCOME
INCOME:
Interest.........................................................$ 3,097,833
Dividends (net of foreign taxes withheld of $5,340)...................491,683
---------
3,589,516
---------
EXPENSES (NOTE 2):
Management fees.....................................................1,118,018
Directors' fees and expenses............................................1,330
---------
1,119,348
---------

NET INVESTMENT INCOME...............................................2,470,168
---------

REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY (NOTE 3)
NET REALIZED GAIN (LOSS) ON:
Investments.........................................................5,644,999
Foreign currency transactions........................................(12,973)
---------
5,632,026
---------
CHANGE IN NET UNREALIZED APPRECIATION ON:
Investments........................................................11,506,869
Translation of assets and liabilities in foreign currencies............19,447
---------
11,526,316
---------

NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FOREIGN CURRENCY...................................17,158,342
---------

NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.........................................$19,628,510
==========

See Notes to Financial Statements

10 Statement of Operations American Century Investments

<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS

SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1996

Increase in Net Assets 1997 1996

OPERATIONS
<S> <C> <C>
Net investment income........................................... $ 2,470,168$ 4,503,919
Net realized gain on investments
and foreign currency transactions............................ 5,632,026 9,871,687
Change in net unrealized appreciation
on investments and translation of
assets and liabilities in foreign currencies................. 11,526,316 7,482,658
---------- ---------
Net increase in net assets resulting from operations............ 19,628,510 21,858,264
---------- ----------

DISTRIBUTIONS TO SHAREHOLDERS
From net investment income...................................... (2,554,690) (3,340,445)
From net realized gains from investment transactions............ (9,825,569) (4,846,873)
----------- -----------
Decrease in net assets from distributions....................... (12,380,259) (8,187,318)
------------ -----------

CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold....................................... 49,348,784 55,260,449
Proceeds from reinvestment of distributions..................... 12,380,260 8,187,318
Payments for shares redeemed.................................... (41,718,001) (15,548,799)
----------- -----------
Net increase in net assets from capital share transactions...... 20,011,043 47,898,968
---------- ----------

Net increase in net assets...................................... 27,259,294 61,569,914

NET ASSETS
Beginning of period............................................. 215,393,084 153,823,170
----------- -----------
End of period................................................... $242,652,378 $215,393,084
============ ============

Undistributed net investment income............................. $ 1,315,432 $ 1,399,954
============ ============

TRANSACTIONS IN SHARES OF THE FUND
Sold............................................................ 6,525,885 7,704,328
Issued in reinvestment of distributions......................... 1,737,653 1,168,206
Redeemed........................................................ (5,526,034) (2,170,655)
----------- -----------
Net increase.................................................... 2,737,504 6,701,879
========= =========
</TABLE>

See Notes to Financial Statements

Semiannual Report Statements of Changes in Net Assets 11

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1997 (UNAUDITED)

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES

ORGANIZATION -- American Century Variable Portfolios, Inc., formerly TCI
Portfolios, Inc., (the Corporation) is registered under the Investment Company
Act of 1940 as an open-end diversified management investment company. American
Century VP Balanced, formerly TCI Balanced, (the Fund) is one of the five series
of funds issued by the Corporation. The Fund's investment objective is capital
growth and current income. The Fund seeks to achieve its investment objective by
maintaining approximately 60% of the assets in common stocks that are considered
by management to have better-than-average prospects for appreciation and the
remaining assets in bonds and other fixed income securities. The following
significant accounting policies, related to the Fund, are in accordance with
accounting policies generally accepted in the investment company industry.

SECURITY VALUATIONS -- Portfolio securities traded primarily on a principal
securities exchange are valued at the last reported sales price, or the mean of
the latest bid and asked prices where no last sales price is available.
Securities traded over-the-counter are valued at the mean of the latest bid and
asked prices or, in the case of certain foreign securities, at the last reported
sales price, depending on local convention or regulation. Debt securities not
traded on a principal securities exchange are valued through valuations obtained
from a commercial pricing service or at the mean of the most recent bid and
asked prices. When valuations are not readily available, securities are valued
at fair value as determined in accordance with procedures adopted by the Board
of Directors.

SECURITY TRANSACTIONS -- Security transactions are accounted for on the
date purchased or sold. Net realized gains and losses are determined on the
identified cost basis, which is also used for federal income tax purposes.

INVESTMENT INCOME -- Dividend income less foreign taxes withheld (if any)
is recorded as of the ex-dividend date. Interest income is recorded on the
accrual basis and includes amortization of discounts and premiums.

FOREIGN CURRENCY TRANSACTIONS -- The accounting records of the Fund are
maintained in U.S. dollars. All assets and liabilities initially expressed in
foreign currencies are converted into U.S. dollars at prevailing exchange rates.
Purchases and sales of investment securities, dividend and interest income, and
certain expenses are translated at the rates of exchange prevailing on the
respective dates of such transactions.

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- The Fund may enter into
forward foreign currency exchange contracts for the purpose of settling specific
purchases or sales of securities denominated in a foreign currency or to hedge
the Fund's exposure to foreign currency exchange rate fluctuations. When
required, the Fund will segregate assets in an amount sufficient to cover its
obligations under the hedge contracts. The net U.S. dollar value of foreign
currency underlying all contractual commitments held by the Fund and the
resulting unrealized appreciation or depreciation are determined daily using
prevailing exchange rates. Forward contracts involve elements of risk in excess
of the amount reflected in the Statement of Assets and Liabilities. The Fund
bears the risk of an unfavorable change in the foreign currency exchange rate
underlying the forward contract. Additionally, losses may arise if the
counterparties do not perform under the contract terms.

REPURCHASE AGREEMENTS -- The Fund may enter into repurchase agreements with
institutions that the Fund's investment manager, American Century Investment
Management, Inc. (ACIM), has determined are creditworthy pursuant to criteria
adopted by the Board of Directors. Each repurchase agreement is recorded at
cost. The Fund requires that the securities purchased in a repurchase
transaction be transferred to the custodian in a manner sufficient to enable the
Fund to obtain those securities in the event of a default under the repurchase
agreement. ACIM monitors, on a daily basis, the value of the securities
transferred to ensure that the value, including accrued interest, of the
securities under each repurchase agreement is equal to or greater than amounts
owed to the Fund under each repurchase agreement.

JOINT TRADING ACCOUNT -- Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other registered
investment companies having management agreements with ACIM, may transfer
uninvested cash balances into a joint trading account. These balances are
invested in one or more repurchase agreements that are collateralized by U.S.
Treasury or Agency obligations.

12 Notes to Financial Statements American Century Investments

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1997 (UNAUDITED)

INCOME TAX STATUS -- It is the policy of the Fund to distribute all taxable
income and capital gains to shareholders and to otherwise qualify as a regulated
investment company under provisions of the Internal Revenue Code. Accordingly,
no provision has been made for federal income taxes.

DISTRIBUTIONS TO SHAREHOLDERS -- Distributions to shareholders are recorded
on the ex-dividend date. Distributions from net investment income and net
realized gains are declared and paid annually.

SUPPLEMENTARY INFORMATION -- Certain officers and directors of the
Corporation are also officers and/or directors, and, as a group, controlling
stockholders of American Century Companies, Inc., the parent of the
Corporation's investment manager, ACIM, the Corporation's distributor, American
Century Investment Services, Inc., and the Corporation's transfer agent,
American Century Services Corporation.

USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.

- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH RELATED PARTIES

- --------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS

Purchases of investment securities, excluding short-term investments,
totaled $151,759,962, including purchases of U.S. Treasury and Agency
obligations totaling $20,268,473. Sales of investment securities, excluding
short-term investments, totaled $146,462,994, including sales of U.S. Treasury
and Agency obligations totaling $26,883,718.

As of June 30, 1997, accumulated net unrealized appreciation was
$36,459,623, based on the aggregate cost of investments of $204,352,127 for
federal income tax purposes. Accumulated net unrealized appreciation consisted
of unrealized appreciation of $37,862,068 and unrealized depreciation of
$1,402,445.

Semiannual Report Notes to Financial Statements 13

<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS

For a Share Outstanding Throughout the Years Ended December 31 (except as noted)
1997(1) 1996 1995 1994 1993 1992
PER-SHARE DATA
Net Asset Value,
<S> <C> <C> <C> <C> <C> <C>
Beginning of Period ..................... $7.54 $7.04 $5.96 $6.07 $5.74 $6.19
------ ------ ------ ------ ------ ------
Income From Investment Operations
Net Investment Income .............. 0.08 0.18 0.17 0.15 0.11 0.08
Net Realized and Unrealized Gain
(Loss) on Investment Transactions .. 0.56 0.65 1.08 (0.11) 0.33 (0.45)
------ ------ ------ ------ ------ ------
Total From
Investment Operations .............. 0.64 0.83 1.25 0.04 0.44 (0.37)
------ ------ ------ ------ ------ ------
Distributions
From Net Investment Income .........(0.09) (0.13) (0.17) (0.15) (0.11) (0.08)
From Net Realized Gains
on Investment Transactions .........(0.34) (0.20) -- -- -- --
------ ------ ------ ------ ------ ------
Total Distributions ................(0.43) (0.33) (0.17) (0.15) (0.11) (0.08)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period .......... $7.75 $7.54 $7.04 $5.96 $6.07 $5.74
====== ====== ====== ====== ====== ======
Total Return(2) .................... 8.92% 12.21% 21.12% 0.61% 7.68% (6.04)%
------ ------ ------ ------ ------ ------

RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets .................1.00%(3) 0.99% 0.97% 1.00% 1.00% 1.00%
Ratio of Net Investment Income
to Average Net Assets .................2.22%(3) 2.43% 2.69% 2.49% 1.97% 1.91%
Portfolio Turnover Rate ............... 68% 130% 87% 63% 68% 85%
Average Commission Paid per
Investment Security Traded ............ $0.0360 $0.0373 $0.0400 --(4) --(4) --(4)
Net Assets, End
of Period (in thousands) ..............$242,652 $215,393 $153,823 $105,100 $75,924 $34,382

(1) Six months ended June 30, 1997 (unaudited).
(2) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.
(3) Annualized.
(4) Disclosure of average commission paid per investment security traded was not
required prior to the year ended December 31, 1995.
</TABLE>

See Notes to Financial Statements

14 Financial Highlights American Century Investments

NOTES

Semiannual Report Notes 15

BACKGROUND INFORMATION

INVESTMENT PHILOSOPHY AND POLICIES

The fund's investment philosophy focuses on four important principles:

We attempt to keep the fund fully invested at all times, regardless of
short-term market activity. Experience has shown that market gains can occur in
unpredictable spurts and that missing even some of those opportunities may
significantly limit potential for gain.

For the equity portfolio, the management team seeks to own highly
successful companies, which we define as those whose earnings and revenues are
growing at accelerating rates.

For the fixed income portfolio, "quality first" is the rule. The management
team seeks only investment-grade bonds--those rated in the top four quality
categories by nationally recognized statistical organizations.

Each portfolio is managed by a team, rather than by one "star" manager. We
believe this allows us to make better, more consistent management decisions.

VP Balanced seeks to provide capital growth and current income. The fund
keeps about 60% of its assets in the stocks of firms that are considered by
management to have better-than-average prospects for appreciation. Under normal
market conditions, the remaining assets are held in quality, intermediate-term
bonds and other fixed-income securities.

COMPARATIVE INDICES

The indices listed below are used in the report to serve as a comparison
for the performance of the fund. They are not investment products available for
purchase.

The blended index is considered the benchmark for VP Balanced. It combines
two widely known indices in proportion to the asset mix of the fund.
Accordingly, 60% of the index is represented by the S&P 500, which reflects the
60% of the fund's assets invested in equity securities. The remaining 40% of the
index is represented by the Lehman Intermediate Government/Corporate Index,
which reflects the 40% of the fund's assets invested in intermediate-term bonds
and other fixed-income securities.

The Lehman Intermediate Government/Corporate Index is considered to
represent the performance of a portfolio of intermediate-term U.S. government
and corporate bonds. The index includes the Lehman Government and Corporate Bond
Indices, which are composed of U.S. government, Treasury and agency securities
with one- to 10-year maturities, as well as corporate and Yankee bonds with one-
to 10-year maturities.

FUND MANAGEMENT TEAM LEADERS

EQUITY PORTFOLIO:
Portfolio Manager Jim Stowers III
Portfolio Manager Bruce Wimberly

FIXED-INCOME PORTFOLIO:
Portfolio Manager Bud Hoops
Portfolio Manager Jeff Houston

16 Background Information American Century Investments

GLOSSARY

FIXED INCOME TERMS

CREDIT QUALITY reflects the financial strength of a debt security issuer
and the likelihood of timely payment of interest and principal.

DURATION is a measure of the sensitivity of a fixed income portfolio to
changes in interest rates. As the duration of a portfolio increases, the impact
of a change in interest rates on the value of the portfolio also increases.

STANDARD & POOR'S (S&P) is an independent rating company, one of the two
best known in the U.S. (the other is Moody's). The credit ratings issued by S&P
and Moody's reflect the perceived financial strength (credit quality) of debt
issuers. Debt securities rated "investment grade" (deemed to be of high enough
credit quality to be appropriate investments for banks and other institutions)
by S&P are those rated BBB or higher (the highest rating is AAA).

WEIGHTED AVERAGE MATURITY (WAM), another measurement of the sensitivity of
a fixed income portfolio to interest rate changes, indicates the average time
until the principal in the portfolio is expected to be repaid, weighted by
dollar amount. The longer the WAM, the more interest rate exposure and interest
rate sensitivity the portfolio has.

RETURNS

TOTAL RETURN figures show the overall percentage change in the value of a
hypothetical investment in the fund and assume that all of the fund's
distributions are reinvested.

AVERAGE ANNUAL RETURNS illustrate the annually compounded returns that
would have produced the fund's cumulative total returns if the fund's
performance had been constant over the entire period. Average annual returns
smooth out variations in a fund's return; they are not the same as year-by-year
results. For year-by-year total returns, please refer to the "Financial
Highlights" on page 14.

EQUITY TERMS

BLUE-CHIP STOCKS -- generally considered to be the stocks of the most
established companies in American industry. They are generally large, fairly
stable companies that have demonstrated consistent earnings and usually have
long-term growth potential. Examples include General Electric and Coca-Cola.

CYCLICAL STOCKS -- generally considered to be stocks whose price and
earnings fluctuations tend to follow the ups and downs of the business cycle.
Examples include the stocks of automobile manufacturers, steel producers and
textile operators.

GROWTH STOCKS -- generally considered to be the stocks of companies that
have experienced above-average earnings growth and appear likely to continue
such growth. These stocks often sell at high P/E ratios. Examples can include
the stocks of high-tech, computer hardware and computer software companies.

LARGE-CAPITALIZATION ("LARGE-CAP") STOCKS -- generally considered to be the
stocks of companies with a market capitalization (the total value of a company's
outstanding stock) of more than $5 billion. These tend to be the stocks that
make up the Dow Jones Industrial Average, the S&P 500 and the Russell 1000
Index.

MEDIUM-CAPITALIZATION ("MID-CAP") STOCKS -- generally considered to be the
stocks of companies with a market capitalization (the total value of a company's
outstanding stock) of between $1 billion and $5 billion. These tend to be the
stocks that make up the S&P MidCap 400.

PRICE/EARNINGS (P/E) RATIO -- a stock value measurement calculated by
dividing a company's stock price by its earnings per share, with the result
expressed as a multiple instead of as a percentage. (Earnings per share is
calculated by dividing the after-tax earnings of a corporation by its
outstanding shares.)

SMALL-CAPITALIZATION ("SMALL-CAP") STOCKS -- generally considered to be the
stocks of companies with a market capitalization (the total value of a company's
outstanding stock) of less than $1 billion. These tend to be the stocks that
make up the Nasdaq Composite Index and the Russell 2000 Index.

VALUE STOCKS -- generally considered to be stocks that are purchased
because they are relatively inexpensive. These stocks are typically
characterized by low P/E ratios.

Semiannual Report Glossary 17

[american century logo]
American
Century(sm)

P.O. Box 419385
Kansas City, Missouri
64141-6385

Investor Services:
1-800-345-3533 or 816-531-5575

Automated Information Line:
1-800-345-8765

Telecommunications Device for the Deaf:
1-800-345-1833 or 816-444-3485

Fax: 816-340-4360

Internet: www.americancentury.com

American Century Variable Portfolios, Inc.

Investment Manager
American Century Investment Management, Inc.
Kansas City, Missouri

American Century Investment Services, Inc.

9707 [recycled logo]
SH-BKT-9290 Recycled
<PAGE>
SEMIANNUAL REPORT

[american century logo]
American
Century(sm)

JUNE 30, 1997

AMERICAN CENTURY
VARIABLE
PORTFOLIOS, INC.

VP Advantage

TABLE OF CONTENTS

Our Message to You..........................................................1
Performance & Portfolio Information.........................................2
Management Q & A............................................................3
Schedule of Investments.....................................................5
Statement of Assets and Liabilities.........................................8
Statement of Operations.....................................................9
Statements of Changes in Net Assets........................................10
Notes to Financial Statements..............................................11
Financial Highlights.......................................................13
Background Information
Investment Philosophy and Policies....................................16
Comparative Indices...................................................16
Fund Management Team Leaders..........................................16
Glossary...................................................................17

We welcome your comments or questions about this report.
See the back cover for ways to contact us by mail, phone or e-mail.

American Century Investments

OUR MESSAGE TO YOU

[photo of James E. Stowers, Jr. and James E. Stowers III]

During the six months ended June 30, 1997, American Century VP Advantage
Fund (formerly TCI Advantage) met its investment objective of providing current
income and capital growth. In the Management Q&A that follows, the investment
team discusses the fund's performance and strategy during the period.

In addition to building our fund family, we have also been strengthening
our corporate team. In June, Bill Lyons, American Century's chief operating
officer, became president, assuming full responsibility for the company's
day-to-day operations. This change enables us to spend more time developing and
refining new investment technologies and tools that build on and leverage the
proprietary system we pioneered 25 years ago. One of our goals is to ensure that
we continue to evolve and innovate -- building the investment tools today that
will lead us and our investors to success in the next century.

In closing, we want to reassure you that American Century remains committed
to serving your investment needs first and foremost. Thank you for your trust
and confidence.

Sincerely,

/s/James E. Stowers, Jr. /s/James E. Stowers III
James E. Stowers, Jr. James E. Stowers III
Chairman of the Board and Founder Chief Executive Officer

Semiannual Report Our Message to You 1

PERFORMANCE & PORTFOLIO INFORMATION

AVERAGE ANNUAL RETURNS

6 MONTHS 1 YEAR 3 YEARS 5 YEARS LIFE OF FUND(1)

TOTAL RETURNS AS OF JUNE 30, 1997
VP Advantage.....6.67% 12.31% 11.77% 8.76% 8.37%
Blended index....9.86% 17.68% 15.46% 11.29% 10.99%

(1) The fund's inception date was 8/1/91.

See pages 16 and 17 for more information about comparative indices and returns.

[line graph - data below]

GROWTH OF $10,000 OVER LIFE OF FUND
$10,000 investment made 8/1/91

Value on 6/30/97
Blended index $19,301
VP Advantage $16,086

VP Advantage Blended index
8/1/91 $10,000 $10,000
12/31/91 $11,381 $10,749
6/30/92 $10,571 $10,879
12/31/92 $10,953 $11,453
6/30/93 $11,350 $11,981
12/31/93 $11,702 $12,369
6/30/94 $11,519 $12,113
12/31/94 $11,823 $12,443
6/30/95 $12,983 $14,011
12/31/95 $13,803 $15,248
6/30/96 $14,323 $16,033
12/31/96 $15,080 $17,251
6/30/97 $16,086 $19,301

Past performance does not guarantee future results. Investment return and
principal value will fluctuate, and redemption value may be more or less than
original cost.

The line representing the fund's total return includes operating expenses
(such as transaction costs and management fees) that reduce returns, while the
return line of the blended index does not.

[pie chart]

ASSET ALLOCATION (as of June 30, 1997)

Common Stocks 40%
U.S. Treasury Securities 39%
Short-Term Cash Investments 21%

See Glossary on page 17 for investment terms.

2 Performance & Portfolio Information American Century Investments

MANAGEMENT Q & A

An interview with Bruce Wimberly and Jeff Houston, portfolio managers on
the VP Advantage equity and fixed-income investment teams.

How did the fund perform for the six-month period ended June 30, 1997?

The fund's total return was 6.67%, reflecting the combined performance of
the fund's stock portfolio (40% of assets), bond portfolio (40% of assets) and
cash portfolio (20% of assets). This performance lagged the 9.86% total return
posted by the fund's benchmark, a blended index. This blended index combines the
S&P 500, the Lehman Intermediate Government Bond Index and a three-month
Treasury bill index in proportion to the asset mix of the fund. For the 12
months ended June 30, 1996, VP Advantage gained 12.31%, while the blended index
returned 17.68%.

What explains the fund's performance relative to its benchmark?

It was affected primarily by the fact that the fund's small- and mid-cap
stock holdings were out of favor. For the period, the fund's stock portfolio
returned 5.34%, compared with 20.61% for the S&P 500, while the bond portfolio
returned 1.09%, compared to the 2.76% return posted by its benchmark index, the
Lehman Intermediate Government Bond Index.

The performance of the blended index was heavily influenced by the
exceptionally strong performance of the S&P 500, which represents 40% of the
blended index. The S&P 500 reflects the performance of the U.S. stock market
generally, but it has a large-capitalization bias. Large-cap stocks generally
outperformed mid- and small-cap companies, particularly during the first quarter
of 1997. This market trend worked against the fund, since we had purchased some
attractive smaller-cap stocks late last year in an effort to improve the fund's
performance. The underperformance of these stocks reduced the performance of the
fund's stock portfolio below that of its benchmark. However, we think that
blending these smaller, faster-growing companies with the fund's traditional
holdings of larger, blue-chip firms will enhance returns over time.

What specific stocks or sectors of the market had the greatest impact on
the performance of the fund's stock portfolio?

Some energy-related and technology companies proved disappointing. In the
energy sector, VP Advantage held shares of several oil-drilling companies that
had demonstrated impressive

TOP TEN EQUITY HOLDINGS % of equity portfolio
As of As of
6/30/97 12/31/96
Tyco International Ltd. 5.0% -
Warner-Lambert Co. 4.7% 3.5%
General Electric Co. 4.1% 2.9%
Pfizer, Inc. 3.8% 2.8%
Lilly (Eli) & Co. 3.5% 2.4%
Phillips Electronics N.V. 3.3% -
Clear Channel
Communications, Inc. 3.2% 1.1%
Intel Corp. 3.2% 5.0%
Merck & Co., Inc. 3.1% 2.5%
Outdoor Systems, Inc. 2.8% -

TOP FIVE INDUSTRIES % of equity portfolio
As of As of
6/30/97 12/31/96
Pharmaceuticals 20.6% 17.9%
Diversified Companies 12.4% 2.9%
Electrical & Electronic
Components 10.8% 6.7%
Banking 7.9% 6.3%
Consumer Products 6.5% -

Semiannual Report Management Q & A 3

MANAGEMENT Q & A

growth and whose stock appreciated steadily during the previous six months. We
held onto these stocks because we expected to continue to benefit from
increasing demand for new oil supplies. However, the stocks began sliding in
mid-January as oil and gas prices fell.

We continue to like certain sectors within technology, given their strong
fundamental results over the period. However, as with many industries, there
were pockets of weakness. Despite short-term price volatility, we remain
committed to those companies that can demonstrate a sustained level of improving
growth. We believe that in the long run, prices follow earnings.

What changes are you making to the fund's stock portfolio?

We've increased the portfolio's market capitalization by adding more
quality mid-cap and large-cap stocks, which offer growth with a measure of
stability. Companies that continue to appeal to us tend to have the following
characteristics: dominant market share, pricing power, global reach, good
capital management and strong management teams. A few examples include Clear
Channel Communications, a leading consolidator of radio and TV companies,
Proctor and Gamble, a worldwide distributor of household products; and
SunAmerica, a leader in retirement products. We also are reducing our
concentrations in some sectors to provide broader diversification to the
portfolio and reduce the impact of the fund's more volatile holdings.

How did the fund's bond portfolio perform? What factors had an impact on
performance?

The bond portion of the fund performed about as well as could be expected
in an unstable period for bonds. We assumed a cautious posture, keeping the
portfolio's duration at or below the fund's neutral level for most of the
period. The fund's duration proved to be an advantage in the somewhat volatile
interest rate environment of the past six months. Rather than try to guess the
direction of interest rates, we took a steady, cautious approach to managing the
bond portion of the fund.

What's your outlook for the fund's bond portfolio?

VP ADVANTAGE'S FIXED-INCOME PORTFOLIO
As of As of
6/30/97 12/31/96
Portfolio Sensitivity to Interest Rates
Weighted Average Maturity 4.8 years 4.9 years
Duration 3.8 years 3.9 years

Portfolio Credit Quality % of fixed income portfolio
(S&P Rating)
AAA 100% 100%

See Glossary on page 17.

4 Management Q & A American Century Investments

SCHEDULE OF INVESTMENTS

JUNE 30, 1997 (UNAUDITED)

Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS

AEROSPACE & DEFENSE--1.6%
3,800 BE Aerospace, Inc.(1) $119,938
3,400 United Technologies Corp. 282,200
-------
402,138
-------

BANKING--3.2%
4,000 BankAmerica Corp. 258,250
1,900 Charter One Financial, Inc. 102,481
2,324 Chase Manhattan Corp. 225,573
1,800 Citicorp 217,013
-------
803,317
-------

BIOTECHNOLOGY--0.2%
3,900 Bio-Technology General Corp.(1) 52,772
------

BROADCASTING & MEDIA--2.4%
5,300 Clear Channel Communications, Inc.(1) 325,950
7,500 Outdoor Systems, Inc.(1) 285,938
-------
611,888
-------

BUILDING & HOME IMPROVEMENTS--0.5%
3,000 American Standard Companies Inc.(1) 134,250
-------

CHEMICALS & RESINS--0.4%
2,200 Ecolab, Inc. 105,050
-------

COMMUNICATIONS EQUIPMENT--0.6%
1,000 Motorola Inc. 76,000
2,900 Westell Technologies, Inc.(1) 72,591
------
148,591
-------

COMPUTER PERIPHERALS--0.3%
2,100 Western Digital Corp.(1) 66,412
------

COMPUTER SOFTWARE & SERVICES--2.3%
2,700 BMC Software, Inc.(1) 149,681
5,200 Compuware Corp.(1) 248,950
3,000 Electronics for Imaging, Inc.(1) 141,656
1,000 Oracle Systems Corp.(1) 50,344
------
590,631
-------

COMPUTER SYSTEMS--0.8%
1,000 Compaq Computer Corp.(1) 99,250
2,600 Sun Microsystems, Inc.(1) 96,769
------
196,019
-------

Shares Value
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS--2.6%
2,500 Avon Products, Inc. $ 176,406
3,000 Gillette Company 284,250
1,400 Procter & Gamble Co. (The) 197,750
-------
658,406
-------

DIVERSIFIED COMPANIES--5.0%
6,300 General Electric Co. 411,862
2,600 Honeywell Inc. 197,275
7,200 Tyco International Ltd. 500,850
4,000 U.S. Industries, Inc.(1) 142,500
-------
1,252,487
---------

ELECTRICAL & ELECTRONIC
COMPONENTS--4.3%
2,400 Altera Corp.(1) 121,275
2,300 Intel Corp. 325,666
700 Johnson Controls, Inc. 28,744
2,500 KLA Instruments Corp.(1) 121,953
4,800 LSI Logic Corp.(1) 153,600
4,700 Phillips Electronics N.V. 337,812
-------
1,089,050
---------

ENERGY (PRODUCTION & MARKETING)--1.8%
4,800 Falcon Drilling Co. Inc.(1) 276,600
2,900 Global Marine Inc.(1) 67,425
6,200 Tubos de Acero de Mexico,
S.A. ADR(1) 114,313
-------
458,338
-------

ENERGY (SERVICES)--1.1%
2,000 Diamond Offshore Drilling, Inc.(1) 156,250
2,600 Energy Ventures, Inc.(1) 109,200
-------
265,450
-------

ENVIRONMENTAL SERVICES--0.5%
3,600 USA Waste Services, Inc.(1) 139,050
-------

FINANCIAL SERVICES--0.3%
2,000 Federal National Mortgage Association 87,250
------

FOOD & BEVERAGE--0.5%
3,900 Panamerican Beverages Inc. 128,212
-------

HEALTHCARE--0.5%
2,350 Cardinal Health, Inc. 134,537
-------

See Notes to Financial Statements

Semiannual Report Schedule of Investments 5

SCHEDULE OF INVESTMENTS

JUNE 30, 1997 (UNAUDITED)

Shares/Principal Amount Value
- --------------------------------------------------------------------------------
INSURANCE--1.5%
4,300 Conseco Inc. $ 159,100
4,400 SunAmerica, Inc. 214,500
-------
373,600
-------

LEISURE--0.3%
2,300 Callaway Golf Co. 81,650
------

PHARMACEUTICALS--8.2%
2,100 American Home Products Corp. 160,650
3,700 Johnson & Johnson 238,188
3,200 Lilly (Eli) & Co. 349,800
3,000 Merck & Co., Inc. 310,500
106 Novartis ORD 169,495
3,200 Pfizer, Inc. 382,400
3,800 Warner-Lambert Co. 472,150
-------
2,083,183
---------

RETAIL (APPAREL)--0.2%
600 Gucci Group N.V. 38,625
------

TEXTILES & APPAREL--0.9%
4,900 Samsonite Corp.(1) 216,519
-------

TOTAL COMMON STOCKS--40.0% 10,117,425
(Cost $7,331,569) ----------

U.S. TREASURY SECURITIES
$1,000,000 U.S. Treasury Notes,
6.125%, 3/31/98 1,003,440
350,000 U.S. Treasury Notes,
6.00%, 9/30/98 350,437
700,000 U.S. Treasury Notes,
5.125%, 11/30/98 692,342
1,000,000 U.S. Treasury Notes,
7.75%, 1/31/00 1,036,560
1,000,000 U.S. Treasury Notes,
5.75%, 10/31/00 984,380
200,000 U.S. Treasury Notes,
5.625%, 11/30/00 196,000
400,000 U.S. Treasury Notes,
6.625%, 6/30/01 404,124
250,000 U.S. Treasury Notes,
6.375%, 9/30/01 250,158
300,000 U.S. Treasury Notes,
6.25%, 1/31/02 298,500

Principal Amount Value
- --------------------------------------------------------------------------------
$200,000 U.S. Treasury Notes,
6.50%, 5/31/02 $ 200,812
1,250,000 U.S. Treasury Notes,
5.75%, 8/15/03 1,207,425
500,000 U.S. Treasury Notes,
7.875%, 11/15/04 539,530
2,000,000 U.S. Treasury Notes,
6.50%, 8/15/05 1,995,620
200,000 U.S. Treasury Notes,
5.875%, 11/15/05 191,438
450,000 U.S. Treasury Notes,
6.50%, 10/15/06 448,173
-------

TOTAL U.S. TREASURY SECURITIES--38.8% 9,798,939
(Cost $9,893,932) ---------

U.S. GOVERNMENT AGENCY SECURITIES--0.6%
150,000 FNMA, MTN, 7.49%, 5/22/07 150,673
-------
(Cost $150,747)

SHORT-TERM CASH INVESTMENTS(2)
$400,000 par value FHLB Discount Note,
5.301%, 7/1/97 400,000
1,200,000 Units of Participation in Chase
Vista Federal Money Market Fund
(Institutional Shares), 5.32%, 7/1/97 1,200,000
1,200,000 Units of Participation in Chase
Vista U.S. Government Money
Market Fund (Institutional Shares),
5.33%, 7/1/97 1,200,000
Repurchase Agreement, Goldman Sachs &
Co., Inc., (U.S. Treasury obligations),
in a joint trading account at 5.80%,
dated 6/30/97, due 7/1/97
(Delivery value $1,200,193) 1,200,000
Repurchase Agreement, Merrill Lynch & Co. Inc.,
(U.S. Treasury obligations), in a
joint trading account at 5.65%,
dated 6/30/97, due 7/1/97
(Delivery value $1,200,188) 1,200,000
---------
TOTAL short-term CASH
INVESTMENTS--20.6% 5,200,000
---------
(Cost $5,200,000)
TOTAL INVESTMENT SECURITIES--100.0% $25,267,037
(Cost $22,576,248) ===========

See Notes to Financial Statements

6 Schedule of Investments American Century Investments

SCHEDULE OF INVESTMENTS

JUNE 30, 1997 (UNAUDITED)

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Contract Settlement Unrealized
to Sell Date Value Gain
154,553 CHF 7/31/97 $106,292 $1,506
(Value on Settlement Date $107,798) ======== =======

NOTES TO SCHEDULE OF INVESTMENTS

ADR = American Depositary Receipt
CHF = Swiss Franc
FHLB = Federal Home Loan Bank
FNMA = Federal National Mortgage Association
MTN = Medium Term Note
ORD = Foreign Ordinary Share
(1) Non-income producing.
(2) The rates for U.S. Government Agency discount notes are
the yield to maturity at June 30, 1997.

See Notes to Financial Statements

Semiannual Report Schedule of Investments 7

<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES

JUNE 30, 1997 (UNAUDITED)

ASSETS
<S> <C>
Investment securities, at value (identified cost of $22,576,248) (Note 3) ................... $25,267,037
Cash ........................................................................................ 50,708
Receivable for forward foreign currency contracts ........................................... 1,506
Receivable for investments sold ............................................................. 109,680
Dividends and interest receivable ........................................................... 179,973
-------
25,608,904
----------
LIABILITIES
Payable for investments purchased ........................................................... 58,151
Payable for capital shares redeemed ......................................................... 38,171
Accrued management fees (Note 2) ............................................................ 19,412
------
115,734
-------
Net Assets Applicable to Outstanding Shares ................................................. $25,493,170
===========

CAPITAL SHARES, $0.01 PAR VALUE
Authorized .................................................................................. 200,000,000
===========

Outstanding ................................................................................. 4,082,998
=========

Net Asset Value Per Share ................................................................... $ 6.24
===========

NET ASSETS CONSIST OF:
Capital (par value and paid-in surplus) ..................................................... $21,849,819
Undistributed net investment income ......................................................... 178,755
Accumulated undistributed net realized gain from investments and
foreign currency transactions ............................................................ 772,351
Net unrealized appreciation on investments and translation of
assets and liabilities in foreign currencies (Note 3) .................................. 2,692,245
---------

$25,493,170
===========
</TABLE>

See Notes to Financial Statements

8 Statement of Assets and Liabilities American Century Investments

STATEMENT OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)

INVESTMENT INCOME
Income:
Interest ........................................................ $ 440,783
Dividends (net of foreign taxes withheld of $408) ............... 37,178
------
477,961
-------
Expenses (Note 2):
Management fees ................................................. 120,856
Directors' fees and expenses .................................... 141
-------
120,997
-------

Net investment income ........................................... 356,964
-------

REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY (NOTE 3)
Net realized gain (loss) on:
Investments ..................................................... 781,634
Foreign currency transactions ................................... (992)
-------
780,642
-------

Change in net unrealized appreciation on:
Investments ..................................................... 499,902
Translation of assets and liabilities in foreign currencies ..... 1,483
-----
501,385
-------

Net realized and unrealized gain on
investments and foreign currency ................................ 1,282,027
---------
Net Increase in Net Assets
Resulting from Operations ....................................... $1,638,991
==========

See Notes to Financial Statements

Semiannual Report Statement of Operations 9

<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS

SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1996

Increase in Net Assets 1997 1996

OPERATIONS
<S> <C> <C>
Net investment income ......................................... 356,964 $758,761
Net realized gain on investments
and foreign currency transactions ........................ 780,642 1,368,192
Change in net unrealized appreciation
on investments and translation of
assets and liabilities in foreign currencies ............. 501,385 48,325
------- ------
Net increase in net assets resulting from operations .......... 1,638,991 2,175,278
--------- ---------

DISTRIBUTIONS TO SHAREHOLDERS
From net investment income .................................... (389,326) (583,561)
From net realized gains from investment transactions .......... (1,349,890) (1,133,859)
----------- -----------
Decrease in net assets from distributions ..................... (1,739,216) (1,717,420)
----------- -----------

CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ..................................... 472,482 1,450,803
Proceeds from reinvestment of distributions ................... 1,739,217 1,717,420
Payments for shares redeemed .................................. (1,848,212) (2,433,460)
----------- -----------
Net increase in net assets from capital share transactions .... 363,487 734,763
------- -------

Net increase in net assets .................................... 263,262 1,192,621

NET ASSETS
Beginning of period ........................................... 25,229,908 24,037,287
---------- ----------

End of period ................................................. $25,493,170 $25,229,908
=========== ===========

Undistributed net investment income ........................... $ 178,75 $ 211,117
=========== ===========

TRANSACTIONS IN SHARES OF THE FUND
Sold .......................................................... 75,903 238,512
Issued in reinvestment of distributions ....................... 295,333 288,203
Redeemed ...................................................... (299,944) (398,378)
--------- ---------
Net increase .................................................. 71,292 128,337
========= ==========
</TABLE>

See Notes to Financial Statements

10 Statements of Changes in Net Assets American Century Investments

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1997 (UNAUDITED)

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION -- American Century Variable Portfolios, Inc., formerly TCI
Portfolios, Inc., (the Corporation) is registered under the Investment Company
Act of 1940 as an open-end diversified management investment company. American
Century VP Advantage, formerly TCI Advantage, (the Fund) is one of the five
series of funds issued by the Corporation. The Fund's investment objective is
current income and capital growth. The Fund seeks to achieve its investment
objective by investing approximately 20% of the Fund's assets in cash or cash
equivalents, 40% in fixed income securities with a weighted average maturity of
three to ten years and 40% in equity securities that are considered by
management to have better-than-average prospects for appreciation. The following
significant accounting policies, related to the Fund, are in accordance with
accounting policies generally accepted in the investment company industry.

SECURITY VALUATIONS -- Portfolio securities traded primarily on a principal
securities exchange are valued at the last reported sales price, or the mean of
the latest bid and asked prices where no last sales price is available.
Securities traded over-the-counter are valued at the mean of the latest bid and
asked prices or, in the case of certain foreign securities, at the last reported
sales price, depending on local convention or regulation. Debt securities not
traded on a principal securities exchange are valued through valuations obtained
from a commercial pricing service or at the mean of the most recent bid and
asked prices. When valuations are not readily available, securities are valued
at fair value as determined in accordance with procedures adopted by the Board
of Directors.

SECURITY TRANSACTIONS -- Security transactions are accounted for on the
date purchased or sold. Net realized gains and losses are determined on the
identified cost basis, which is also used for federal income tax purposes.

INVESTMENT INCOME -- Dividend income less foreign taxes withheld (if any)
is recorded as of the ex-dividend date. Interest income is recorded on the
accrual basis and includes amortization of discounts and premiums.

FOREIGN CURRENCY TRANSACTIONS -- The accounting records of the Fund are
maintained in U.S. dollars. All assets and liabilities initially expressed in
foreign currencies are converted into U.S. dollars at prevailing exchange rates.
Purchases and sales of investment securities, dividend and interest income, and
certain expenses are translated at the rates of exchange prevailing on the
respective dates of such transactions.

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- The Fund may enter into
forward foreign currency exchange contracts for the purpose of settling specific
purchases or sales of securities denominated in a foreign currency or to hedge
the Fund's exposure to foreign currency exchange rate fluctuations. When
required, the Fund will segregate assets in an amount sufficient to cover its
obligations under the hedge contracts. The net U.S. dollar value of foreign
currency underlying all contractual commitments held by the Fund and the
resulting unrealized appreciation or depreciation are determined daily using
prevailing exchange rates. Forward contracts involve elements of risk in excess
of the amount reflected in the Statement of Assets and Liabilities. The Fund
bears the risk of an unfavorable change in the foreign currency exchange rate
underlying the forward contract. Additionally, losses may arise if the
counterparties do not perform under the contract terms.

REPURCHASE AGREEMENTS -- The Fund may enter into repurchase agreements with
institutions that the Fund's investment manager, American Century Investment
Management, Inc. (ACIM), has determined are creditworthy pursuant to criteria
adopted by the Board of Directors. Each repurchase agreement is recorded at
cost. The Fund requires that the securities purchased in a repurchase
transaction be transferred to the custodian in a manner sufficient to enable the
Fund to obtain those securities in the event of a default under the repurchase
agreement. ACIM monitors, on a daily basis, the value of the securities
transferred to ensure that the value, including accrued interest, of the
securities under each repurchase agreement is equal to or greater than amounts
owed to the Fund under each repurchase agreement.

JOINT TRADING ACCOUNT -- Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other registered
investment companies having management agreements with ACIM, may transfer
uninvested cash balances into a joint trading account. These balances are
invested in one or more repurchase agreements that are collateralized by U.S.
Treasury or Agency obligations.

Semiannual Report Notes to Financial Statements 11

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1997 (UNAUDITED)

INCOME TAX STATUS -- It is the policy of the Fund to distribute all taxable
income and capital gains to shareholders and to otherwise qualify as a regulated
investment company under provisions of the Internal Revenue Code. Accordingly,
no provision has been made for federal income taxes.

DISTRIBUTIONS TO SHAREHOLDERS -- Distributions to shareholders are recorded
on the ex-dividend date. Distributions from net investment income and net
realized gains are declared and paid annually.

SUPPLEMENTARY INFORMATION -- Certain officers and directors of the
Corporation are also officers and/or directors, and, as a group, controlling
stockholders of American Century Companies, Inc., the parent of the
Corporation's investment manager, ACIM, the Corporation's distributor, American
Century Investment Services, Inc., and the Corporation's transfer agent,
American Century Services Corporation.

USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.

- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH RELATED PARTIES

- --------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS

Purchases of investment securities, excluding short-term investments,
totaled $7,561,259, including purchases of U.S. Treasury and Agency obligations
totaling $752,500. Sales of investment securities, excluding short-term
investments, totaled $8,347,385, including sales of U.S. Treasury and Agency
obligations totaling $423,938.

As of June 30, 1997, accumulated net unrealized appreciation was
$2,690,789, consisting of unrealized appreciation of $2,869,847 and unrealized
depreciation of $179,058. The aggregate cost of investments for federal income
tax purposes was the same as the cost for financial reporting purposes.

12 Notes to Financial Statements American Century Investments

<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS

For a Share Outstanding Throughout the Years Ended December 31 (except as noted)

1997(1) 1996 1995 1994 1993 1992
PER-SHARE DATA
Net Asset Value,
<S> <C> <C> <C> <C> <C> <C>
Beginning of Period ..................... $6.29 $6.19 $5.48 $5.57 $5.32 $5.64
----- ----- ----- ----- ----- -----
Income From Investment Operations
Net Investment Income ............... 0.09 0.20 0.20 0.15 0.11 0.11
Net Realized and Unrealized Gain
(Loss) on Investment Transactions ... 0.30 0.34 0.71 (0.09) 0.25 (0.32)
---- ---- ---- ------ ---- ------
Total From
Investment Operations ............... 0.39 0.54 0.91 0.06 0.36 (0.21)
---- ---- ---- ---- ---- ------
Distributions
From Net Investment Income .......... (0.10) (0.15) (0.20) (0.15) (0.11) (0.11)
From Net Realized Gains
on Investment Transactions .......... (0.34) (0.29) -- -- -- --
------ -- -- -- --
Total Distributions ................. (0.44) (0.44) (0.20) (0.15) (0.11) (0.11)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period .......... $6.24 $6.29 $6.19 $5.48 $5.57 $5.32
====== ===== ===== ===== ===== =====
Total Return(2) ..................... 6.67% 9.25% 16.75% 1.03% 6.82% (3.75)%

RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets ................. 0.98%(3) 0.98% 0.95% 1.00% 1.00% 1.00%
Ratio of Net Investment Income
to Average Net Assets ................. 2.88%(3) 3.10% 3.32% 2.65% 2.07% 2.32%
Portfolio Turnover Rate ............... 39% 80% 99% 57% 77% 85%
Average Commission Paid per
Investment Security Traded ............ $0.0358 $0.0380 $0.0410 --(4) --(4) --(4)
Net Assets, End
of Period (in thousands) .............. $25,493 $25,230 $24,037 $22,413 $20,959 $16,580

(1) Six months ended June 30, 1997 (unaudited).
(2) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized. (3) Annualized. (4) Disclosure of average commission paid per
investment security traded was not required prior to the year ended December 31,
1995.
</TABLE>

See Notes to Financial Statements

Semiannual Report Financial Highlights 13

NOTES

14 Notes American Century Investments

NOTES

Semiannual Report Notes 15

BACKGROUND INFORMATION

INVESTMENT PHILOSOPHY AND POLICIES

The fund's investment philosophy focuses on four important principles:

We attempt to keep the fund's equity and bond portfolios fully invested at
their respective percentages (see below), regardless of short-term market
activity. Experience has shown that market gains can occur in unpredictable
spurts and that missing even some of those opportunities may significantly limit
potential for gain.

For the equity portfolio, the management team seeks to own highly
successful companies, which we define as those whose earnings and revenues are
growing at accelerating rates.

For the fixed income portfolio, "quality first" is the rule. The management
team seeks only investment-grade bonds and money market securities--those rated
in the top four quality categories by nationally recognized statistical
organizations.

Each portfolio is managed by a team, rather than by one "star" manager. We
believe this allows us to make better, more consistent management decisions.

VP Advantage seeks to provide current income and capital growth. Under
normal market conditions the fund keeps about 40% of its assets in quality,
intermediate-term U.S. bonds, 20% in U.S. government money market securities and
the remaining 40% in the stocks of firms with accelerating growth rates.

COMPARATIVE INDICES

The indices listed below are used in the report to serve as a comparison
for the performance of the fund. They are not investment products available for
purchase.

The blended index is considered the benchmark for VP Advantage. It combines
three widely known indices in proportion to the asset mix of the fund.
Accordingly, 40% of the index is represented by the Lehman Intermediate
Government Bond Index, which reflects the 40% of the fund's assets invested in
intermediate-term bonds. Another 20% of the index is represented by a
three-month Treasury bill index, which reflects the 20% invested in U.S.
government money market securities. The remaining 40% of the index is
represented by the S&P 500, which reflects the 40% of the fund's assets invested
in equity securities.

The Lehman Intermediate Government Bond Index is considered to represent
the performance of a high-quality portfolio of intermediate-term U.S. Treasury
and government agency bonds. The index is composed of over 800 U.S. Treasury and
government agency securities with an average maturity of three to five years.

FUND MANAGEMENT TEAM LEADERS
EQUITY PORTFOLIO:
Portfolio Manager Jim Stowers III
Portfolio Manager Bruce Wimberly

FIXED-INCOME PORTFOLIO:
Portfolio Manager Bud Hoops
Portfolio Manager Jeff Houston

16 Background Information American Century Investments

GLOSSARY

FIXED INCOME TERMS

CREDIT QUALITY reflects the financial strength of a debt security issuer
and the likelihood of timely payment of interest and principal.

RETURNS

TOTAL RETURN figures show the overall percentage change in the value of a
hypothetical investment in the fund and assume that all of the fund's
distributions are reinvested.

EQUITY TERMS

VALUE STOCKS -- generally considered to be stocks that are purchased
because they are relatively inexpensive. These stocks are typically
characterized by low P/E ratios.

Semiannual Report Glossary 17

[american century logo]
American
Century(sm)

P.O. Box 419385
Kansas City, Missouri
64141-6385

Investor Services:
1-800-345-3533 or 816-531-5575

Automated Information Line:
1-800-345-8765

Telecommunications Device for the Deaf:
1-800-345-1833 or 816-444-3485

Fax: 816-340-4360

Internet: www.americancentury.com

American Century Variable Portfolios, Inc.

Investment Manager
American Century Investment Management, Inc.
Kansas City, Missouri

American Century Investment Services, Inc.

9707 [recycled logo]
SH-BKT-9789 Recycled