AMERICAN CENTURY VARIABLE PORTFOLIOS INC, N-30D, 1999-08-27

AMERICAN CENTURY VARIABLE PORTFOLIOS INC
N-30D, 1999-08-27

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[front cover]

JUNE 30, 1999

SEMIANNUAL REPORT
- -----------------
AMERICAN CENTURY
VARIABLE PORTFOLIOS

[graphic of stairs]

VP VALUE

[american century logo(reg.sm)]
American
Century

[inside front cover]

[left margin}

VARIABLE PORTFOLIOS
VP VALUE
- -------------------

Our Message to You
- --------------------------------------------------------------------------------

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

The first half of 1999 brought a welcome shift in market sentiment for VP
Value. Investors who had been willing to own only a handful of large, popular
growth stocks suddenly moved to previously-out-of-favor small and midsize
companies, growth and value stocks alike. VP Value's recent experience is a
textbook example of why your investment team sticks to its investment plan,
investing in mid- to large-cap stocks, even when that segment is not in favor.
Shifts in market direction are typically quick and powerful--witness VP Value's
double-digit return for the second quarter alone.

While we're careful not to read too much into this short time period, we
remain believers that mid-cap value stocks are in an excellent position to
continue outperforming their larger brethren.

Also on the investment front, we continued to expand the American Century
investment team, which has doubled over the past three years. Our portfolio
teams have excellent depth with an array of experienced managers and analysts,
and we remain committed to building and maintaining a talented management group.

In the spirit of our ongoing Year 2000 readiness disclosures*, here's an
update on our preparations for Y2K. Our senior-level Year 2000 Steering
Committee, computer programmers, business partners and Y2K team have been
working diligently to make January 1, 2000, a non-event for American Century
investors. Currently, all of our computer systems have been modified, tested and
returned to production. We have an ongoing commitment to testing our systems
with our vendors and business partners and within the industry throughout the
rest of the year.

In March and April of this year, we participated in the Security Industry
Association's (SIA) industry-wide test and successfully processed transactions
for dates up to and beyond 2000. American Century transactions with our partner
firms were processed free of Y2K bugs. We also participated in the Market Data
Test conducted by the SIA and Financial Information Forum in May. Again, the
computer scripts were executed successfully with no Y2K-related errors.

As always, we appreciate your continued confidence in American Century.

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 Vice Chairman of the Board and
Chief Executive Officer

[right margin]

Table of Contents
Report Highlights ...................................................... 2
Market Perspective ..................................................... 3
VP VALUE
Performance Information ................................................ 4
Management Q&A ......................................................... 5
Portfolio at a Glance .................................................. 5
Top Ten Holdings ....................................................... 6
Top Five Industries .................................................... 6
Types of Investments ................................................... 7
Schedule of Investments ................................................ 8
Financial Highlights ................................................... 15
FINANCIAL STATEMENTS
Statement of Assets and
Liabilities ......................................................... 10
Statement of Operations ................................................ 11
Statements of Changes
in Net Assets ....................................................... 12
Notes to Financial
Statements .......................................................... 13
OTHER INFORMATION
Background Information
Portfolio Managers .................................................. 16
Investment Philosophy
and Policies ..................................................... 16
Comparative Indices ................................................. 16
Glossary ............................................................... 17

*This letter includes a Year 2000 Readiness Disclosure.

www.americancentury.com 1

Report Highlights
- --------------------------------------------------------------------------------

MARKET PERSPECTIVE

* The first half of 1999 was a period when almost every stock category posted
respectable returns.

* The second quarter saw a welcome shift in market sentiment for value
investors, as investors moved away from large growth stocks to previously
out-of-favor small and midsize value and growth stocks.

* In April, the attractive prices of smaller and midsize companies lured
investors who were concerned that valuations attached to the big growth
companies might be too high. With the economy continuing to hum, the
perception arose that the economic expansion might not be ending.

* At the end of the period, the Federal Reserve raised short-term interest
rates and announced it was dropping its bias toward higher borrowing costs.
Both the stock and bond markets responded enthusiastically.

VP VALUE

* VP Value gained 13.15% during the first half of the year, in line with the
13.96% increase posted by its benchmark, the S&P 500/BARRA Value Index and
ahead of the general market as reflected by the S&P 500, which was up
12.23% during the six-month period.

* During the second quarter, strong business activity in the United States
and a pickup in a number of overseas economies renewed equity investors'
confidence and they began to move back into small- and mid-cap companies.
Stocks in these segments --and value stocks in particular--turned around
abruptly.

* VP Value's tilt toward the mid-cap sector was a benefit. Since the market's
rotation in mid-April, mid- and small-cap companies have performed
significantly better than their large-cap counterparts.

* A number of VP Value's mid-cap holdings were targets of mergers or
acquisitions, which also helped boost returns.

* We continue to find an abundance of sound, high-quality companies available
at very good values, many of which we consider to be excellent
opportunities.

[left margin]
VP VALUE
TOTAL RETURNS: AS OF 6/30/99
6 Months 13.15%*
1 Year 11.98%
INCEPTION DATE: 5/1/96
NET ASSETS: $425.9 million

*Not annualized.

Investment terms are defined in the Glossary on pages 17-18.

2 1-800-345-6488

Market Perspective from Mark Mallon
- --------------------------------------------------------------------------------

[photo of Mark Mallon]
Mark Mallon, head of specialty, asset allocation, and growth and income equity
funds at American Century

MARKET PERFORMANCE WAS BROADER

Common stock investors will remember the first half of 1999 as a period
when almost every stock category had its moment in the sun--small, midsize and
large, growth and value alike. When we closed our six-month books on June 30,
nearly every category had posted gains, with the second quarter especially kind
to value stocks, which had been trailing their growth counterparts for some
time.

THE FEDERAL RESERVE STEPS IN

As you may recall, with unrest in global financial markets last fall, the
Federal Reserve Board stepped in and stabilized the situation by lowering
short-term interest rates. The strategy worked and we reached 1999 with smaller
stocks rallying. Still, investors would not let go of the narrow list of large,
multinational companies they had previously turned to in a quest for predictable
earnings. As a result, the rally in smaller firms fizzled, and they returned to
their familiar pattern of wide price swings and lower returns during the first
quarter. That changed in the second quarter, however.

THE S&P 500 SLOWS

In April, the attractive prices of smaller and midsize companies were
beacons for investors concerned that valuations attached to the big growth
companies were on the edge of uncharted territory. At the same time, with the
economy continuing to hum, the perception arose that perhaps the longest
economic expansion in U.S. history might not be ending. Given that forecast, the
stocks of economically sensitive companies, such as Dow Chemical and
Caterpillar, shot up. The Dow Jones Industrial Average jumped 17.14% in the
second quarter, trouncing the S&P 500's 7.05% increase. Meanwhile, the S&P
500/BARRA Value Index, a popular measure of value stocks, was up 10.80%.

THE FEDERAL RESERVE STEPS BACK IN

On the last day of this six-month period, the Federal Reserve, citing
firming foreign economies and continuing brisk business activity in the United
States, raised short-term interest rates a quarter of a point to 5%. But the Fed
indicated that with this action it was also dropping its bias toward higher
borrowing costs. Both the bond and stock markets responded enthusiastically to
this news.

GOOD BUSINESSES, GOOD STOCKS

How long a particular size, type or style of stock might be in favor is
difficult to predict. At American Century we focus on helping shareholders build
their capital over time. We do that by following disciplined investment
strategies, regardless of market activity, that are centered on finding
fundamentally strong, high-quality companies with undervalued stock prices.

[right margin]

"IN APRIL, THE ATTRACTIVE PRICES OF SMALLER AND MIDSIZE COMPANIES WERE BEACONS
FOR INVESTORS CONCERNED THAT VALUATIONS ATTACHED TO THE BIG GROWTH COMPANIES
WERE ON THE EDGE OF UNCHARTED TERRITORY."

MARKET RETURNS
FOR THE SIX MONTHS ENDED JUNE 30, 1999

S&P 500/BARRA VALUE 13.96%
S&P MIDCAP 400/BARRA VALUE 5.68%
S&P SMALLCAP 600/BARRA VALUE 8.45%

Source: Lipper Inc.

These indices represent the performance of large-, medium- and
small-capitalization value stocks.

[mountain chart - data below]

MARKET PERFORMANCE (GROWTH OF $1.00)
FOR THE SIX MONTHS ENDED JUNE 30, 1999

S&P 500/ S&P MidCap 400/ S&P SmallCap 600/
Date BARRA Value BARRA Value BARRA Value
12/31/1998 $1.00 $1.00 $1.00
1/31/1999 $1.02 $0.95 $0.99
2/28/1999 $1.00 $0.90 $0.91
3/31/1999 $1.03 $0.92 $0.90
4/30/1999 $1.12 $1.01 $0.98
5/31/1999 $1.10 $1.02 $1.02
6/30/1999 $1.14 $1.06 $1.08

Value on 6/30/99
S&P 500/BARRA Value $1.14
S&P MidCap 400/BARRA Value $1.06
S&P SmallCap 600/BARRA Value $1.08

www.americancentury.com 3

VP Value--Performance
- --------------------------------------------------------------------------------

TOTAL RETURNS AS OF JUNE 30, 1999

S&P 500/BARRA
VP VALUE VALUE INDEX S&P 500

6 MONTHS(1) .............. 13.15% 13.96% 12.23%
1 YEAR ................... 11.98% 16.55% 22.75%
AVERAGE ANNUAL RETURNS
3 YEARS .................. 17.75% 24.05% 29.00%
LIFE OF FUND(2) .......... 17.79% 23.01% 28.57%

(1) Returns for periods less than one year are not annualized.

(2) The fund's inception date was 5/1/96.

See pages 16-18 for information about the indices and returns.

The performance information presented does not include charges and deductions
imposed by the insurance company separate account under the variable annuity or
variable life insurance contracts. The inclusion of such charges could
significantly lower performance. Please refer to the separate account prospectus
for a discussion of the charges related to the insurance contracts.

[mountain chart - data below]

GROWTH OF $10,000 OVER LIFE OF FUND

Value on 6/30/99
S&P 500 $22,147
S&P 500/BARRA Value $19,279
VP Value $16,789

Date VP Value S&P 500 S&P 500/BARRA Value
5/1/1996 $10000.00 $10000.00 $10000.00
5/31/1996 $10120.00 $10258.00 $10151.00
6/30/1996 $10275.80 $10297.00 $10102.30
7/31/1996 $ 9673.68 $ 9841.85 $ 9675.96
8/31/1996 $ 9974.53 $10049.50 $ 9943.02
9/30/1996 $10322.70 $10615.30 $10368.60
10/31/1996 $10483.70 $10908.30 $10720.10
11/30/1996 $11147.30 $11733.00 $11540.20
12/31/1996 $11227.60 $11500.60 $11350.90
1/31/1997 $11362.30 $12219.40 $11874.20
2/28/1997 $11544.10 $12314.70 $11960.90
3/31/1997 $11255.50 $11808.60 $11551.80
4/30/1997 $11459.20 $12513.60 $11985.00
5/31/1997 $12215.50 $13275.70 $12736.50
6/30/1997 $12726.10 $13871.70 $13223.00
7/31/1997 $13482.00 $14974.50 $14280.80
8/31/1997 $13461.80 $14136.00 $13635.30
9/30/1997 $14217.00 $14910.60 $14434.30
10/31/1997 $13543.20 $14412.60 $13903.20
11/30/1997 $13808.60 $15079.90 $14432.90
12/31/1997 $14155.20 $15339.30 $14753.30
1/31/1998 $13849.40 $15509.50 $14571.80
2/28/1998 $15033.60 $16627.80 $15664.70
3/31/1998 $15762.70 $17479.10 $16458.90
4/30/1998 $15696.50 $17655.70 $16653.10
5/31/1998 $15255.40 $17352.00 $16418.30
6/30/1998 $14991.50 $18056.50 $16543.10
7/31/1998 $14307.90 $17863.30 $16184.10
8/31/1998 $12588.10 $15283.80 $13581.70
9/30/1998 $13359.70 $16258.90 $14407.50
10/31/1998 $14373.70 $17582.40 $15535.60
11/30/1998 $14902.70 $18649.70 $16345.00
12/31/1998 $14837.10 $19723.90 $16918.70
1/31/1999 $14043.30 $20548.30 $17260.40
2/28/1999 $13756.80 $19909.30 $16889.30
3/31/1999 $14216.30 $20705.70 $17401.10
4/30/1999 $16046.00 $21507.00 $18901.10
5/31/1999 $16466.40 $20999.40 $18566.50
6/30/1999 $16789.00 $22147.00 $19279.50

The graph at left shows the growth of a $10,000 investment over the life of the
fund, while the chart below shows the fund's year-by-year performance. The S&P
500 and S&P 500/BARRA Value indices are provided for comparison. VP Value's
total returns include operating expenses (such as transaction costs and
management fees) that reduce returns, while the total returns of the S&P 500 and
S&P 500/BARRA Value indices do not. 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.

[bar chart - data below]

ONE-YEAR RETURNS OVER LIFE OF FUND (PERIODS ENDING JUNE 30)

Date VP Value S&P 500/BARRA Value
6/30/1996* 2.75% 1.02%
6/30/1997 23.86% 30.89%
6/30/1998 17.80% 25.12%
6/30/1999 11.98% 16.55%

*From 5/1/96 to 6/30/96.

4 1-800-345-6488

VP Value--Q&A
- --------------------------------------------------------------------------------

[photo of Scott Moore and Phil Davidson]
An interview with Scott Moore and Phil Davidson, portfolio managers on the
VP Value investment team.

HOW DID VP VALUE PERFORM FOR THE FIRST HALF OF ITS FISCAL YEAR?

VP Value gained 13.15% for the six months ended June 30, 1999. Its
benchmark, the S&P 500/BARRA Value Index, posted a 13.96% increase. The S&P 500
Index, representative of the broad market, rose 12.23% during the six months.

WHAT WERE SOME OF THE FACTORS THAT CONTRIBUTED TO PERFORMANCE?

The first half of 1999 was a rewarding period for value investors. The
market's long-running preference for large- capitalization growth stocks, which
has worked against the value investing style for more than two years, shifted
suddenly in April. Strong business activity here in the United States and signs
of a pickup in a number of overseas economies gave equity investors renewed
confidence, and they began to move back into small- and mid-cap companies.
Stocks in these segments--and value stocks in particular--turned around abruptly
and performed exceptionally well during the second quarter. In fact, the S&P
500/ BARRA Value index returned 10.80% in the second three months, far outpacing
the 3.83% gain posted by the S&P 500/BARRA Growth Index.

The fact that VP Value is tilted toward the mid-cap sector was also a
benefit. We are seeing a wave of mergers and acquisitions among midsized firms,
and the proliferation of solid, high-quality companies available at very
attractive prices has made the mid-cap arena a value shopper's delight. In fact,
since the market began leaning toward value stocks in mid-April, mid- and
small-cap companies have performed significantly better than their large-cap
counterparts.

WHICH INDUSTRIES OR STOCKS ADDED THE MOST TO RETURNS?

VP Value's holdings in chemical companies, comprising almost 5% of the
portfolio, represented the fund's best performing industry. Value's holdings in
firms like Nalco Chemical Co. and Lubrizol Corp. benefited over the period from
strengthening economic activity in Asia, as well as consolidation within their
industry.

Banks represented VP Value's largest industry, as well as one of its best
performing areas, even though we were underweight compared to our benchmark
index. Banks in general struggled the first half of 1999, but our stock picks
had good results. For example, Mercantile Bancorp. --at one point VP Value's
largest holding at nearly 5% of investments--was the fund's second-best
performing stock. We have owned this stock for some time. Mercantile recently
implemented several cost-cutting measures, including consolidating a number of
its loan processing centers and reducing its workforce, which considerably
strengthened the firm's bottom line. Mercantile's share price shot up in May
when the bank announced it was being acquired by another bank, Firstar, at a
very attractive premium. We ultimately sold the position at a significant gain.

[right margin]

"THE MARKET'S LONG-RUNNING PREFERENCE FOR LARGE-CAPITALIZATION GROWTH STOCKS,
WHICH HAS WORKED AGAINST THE VALUE INVESTING STYLE FOR MORE THAN TWO YEARS,
SHIFTED SUDDENLY IN APRIL."

PORTFOLIO AT A GLANCE
6/30/99 12/31/98
NO. OF COMPANIES 72 65
MEDIAN P/E RATIO 16.2 15.7
MEDIAN MARKET $2.68 $2.44
CAPITALIZATION BILLION BILLION
PORTFOLIO TURNOVER 76%(1) 158%(2)

(1) Six months ended 6/30/99.

(2) Year ended 12/31/98.

Investment terms are defined in the Glossary on pages 17-18.

www.americancentury.com 5

VP Value--Q&A
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(Continued)

Another large holding, Bank of America (which changed its name from
BankAmerica in April), helped boost returns. Bank of America struggled through a
string of difficulties, including trading losses, a slowdown in investment
banking activity, and increased loan loss reserves, all of which were linked to
global financial market activity. Its stock was also hurt by the much-publicized
failure of a well-known hedge fund, to which the bank had broad exposure.
However, Bank of America is fundamentally strong and continued to have leading
market share. We were confident its problems were manageable and temporary, so
we bought into that weakness. The stock ultimately turned around and we sold it
at a significant gain when it approached what we believed to be fair value.

Minnesota Mining and Manufacturing (3M), among the fund's largest holdings
at 3.6% of investments, was another top performer. 3M is a diversified company
that manufactures a variety of products ranging from tapes and adhesives to
floor coverings and roofing materials. The company's stock dramatically
underperformed in the wake of investor concern that 3M's Asian business would
slacken. The reverse proved to be true; earnings in fact increased in recent
quarters and the stock has done exceptionally well as perceptions about Asia
have changed.

Two other large performance contributors were Baker Hughes and
Browning-Ferris. Baker Hughes provides products and services for the drilling
and production of oil and natural gas wells. The company's stock price had
understandably suffered in line with falling oil and gas prices last year, but
that turned around when energy prices began to recover in early 1999. We have
trimmed our position somewhat as prices have neared what we believe to be fair
value. Browning-Ferris, the country's second-largest waste disposal firm, saw
its stock price improve dramatically in March, when another waste management
firm, Allied Waste Industries, made a cash bid for the company.

WHICH HOLDINGS WERE DISAPPOINTING?

VP Value's worst performing holdings were food and beverage companies.

Archer-Daniels-Midland (ADM), a large grain and foodstuff supplier, has
been a very solid performer for the fund but has been struggling in the midst of
a decline in soybean prices. Its soybean sales continue to be weak, partly due
to reduced demand from overseas. However, ADM is in a strong competitive
position, has a solid balance sheet, and continues to represent an excellent
value. We are holding the position.

Interstate Bakeries was another disappointment. Interstate is the largest
wholesale baker and distributor of fresh bread and snack cakes in the United
States. The company is well managed and financially sound, but has struggled
recently as falling wheat prices have helped its smaller regional competitors.
However, we think that Interstate's current situation is temporary. The company
has never been fundamentally stronger, so we're sitting tight.

[left margin]

TOP TEN HOLDINGS
% OF FUND INVESTMENTS
AS OF AS OF
6/30/99 12/31/98
FIRST VIRGINIA
BANKS, INC. 4.0% 2.5%
MINNESOTA MINING &
MANUFACTURING CO. 3.6% 1.7%
SUMMIT BANCORP. 3.3% 0.8%
INTERSTATE
BAKERIES CORP. 3.2% 2.1%
ARCHER-DANIELS-
MIDLAND CO. 3.1% 2.6%
SUPERIOR INDUSTRIES
INTERNATIONAL, INC. 3.0% 3.2%
FPL GROUP, INC. 3.0% --
KEYCORP 2.9% --
NALCO CHEMICAL CO. 2.5% 1.8%
BURLINGTON
RESOURCES INC. 2.4% 2.0%

TOP FIVE INDUSTRIES
% OF FUND INVESTMENTS
AS OF AS OF
6/30/99 12/31/98

BANKING 13.2% 11.8%
UTILITIES 11.2% 3.7%
HEALTHCARE 7.7% 9.7%
FOOD & BEVERAGE 7.3% 7.8%
ENERGY (PRODUCTION
& MARKETING) 5.1% 7.1%

6 1-800-345-6488

VP Value--Q&A
- --------------------------------------------------------------------------------
(Continued)

CBRL Group, Inc., owners of Old Cracker Barrel, also dampened returns. This
strong company suffered a slowdown in sales after it raised prices in its
restaurant business. Management saw the error of its ways and subsequently
rolled prices back. We expect this stock to rebound in line with the changes,
and are holding onto our position.

WHAT SIGNIFICANT CHANGES DID YOU MAKE TO THE PORTFOLIO OVER THE LAST SIX MONTHS?

For the most part, VP Value's industry and sector weightings have remained
fairly constant. However, since our last report to you, we significantly
increased our stake in electric utilities, which currently represent one of VP
Value's largest industry weightings at 9.4% of investments, when rising interest
rates caused utilities to underperform. We also increased holdings in bank
stocks somewhat to take advantage of improving values, and added slightly to our
healthcare holdings. Our healthcare move was not a tactical effort, nor a
response to any theme within the healthcare industry. Rather, we primarily
focused on a single company, Columbia/HCA Healthcare Corp., which is under
investigation for its billing practices. We believe the company will emerge
relatively unscathed and its price will subsequently rebound.

On the sell side, we lightened positions in financial services companies,
appliance manufacturers, energy services companies and railroads. These stocks
have generally done well as market perceptions have improved and no longer
represent compelling values.

WHAT IS YOUR OUTLOOK FOR VALUE INVESTING?

While we currently believe that value stocks will continue to attract
investors, we doubt that VP Value's recent experience--double-digit performance
over a single quarter--can be sustained. In any case, we plan to continue to
adhere to our strict value discipline. We are finding an abundance of sound,
high-quality companies available at very good values, many of which we consider
to be excellent opportunities. As is our custom, we are maintaining significant
positions in value companies we think are especially attractive. We believe
these types of companies should provide good long-term prospects for
appreciation.

[right margin]

"WE ARE FINDING AN ABUNDANCE OF SOUND, HIGH-QUALITY COMPANIES AVAILABLE AT VERY
GOOD VALUES, MANY OF WHICH WE CONSIDER TO BE EXCELLENT OPPORTUNITIES."

TYPES OF INVESTMENTS IN THE PORTFOLIO

AS OF JUNE 30, 1999
Common Stocks 93.8%
Temporary Cash Investments 6.2%

AS OF DECEMBER 31, 1998
Common Stocks 98.6%
Temporary Cash Investments 1.4%

www.americancentury.com 7

VP Value--Schedule of Investments
- --------------------------------------------------------------------------------

This schedule lists all investments owned by the fund, as well as each
security's market value, as of the last day of the reporting period. The
securities are grouped by asset class (such as common stocks, corporate bonds,
temporary cash investments, as applicable), and some asset classes are further
broken down by industry or country.

NOTE: For securities denominated in foreign currencies, the market value is
translated into U.S. dollars based on exchange rates as of the last day of the
reporting period.

JUNE 30, 1999 (UNAUDITED)

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

COMMON STOCKS -- 93.8%

AEROSPACE & DEFENSE--1.1%
124,000 Lockheed Martin Corp. $ 4,619,000
-------------
AUTOMOBILES & AUTO PARTS--4.4%
325,100 Delphi Automotive Systems Corp. 6,034,669
464,100 Superior Industries International, Inc. 12,675,731
-------------
18,710,400
-------------
BANKING--13.2%
181,800 First Union Corp. 8,544,600
351,000 First Virginia Banks, Inc. 17,242,875
387,200 KeyCorp 12,438,800
95,800 Regions Financial Corp. 3,664,350
341,000 Summit Bancorp. 14,258,062
-------------
56,148,687
-------------
BUILDING & HOME IMPROVEMENTS--0.5%
50,300 York International Corporation 2,153,469
-------------
CHEMICALS & RESINS--4.6%
238,600 IMC Global Inc. 4,205,325
166,900 Lubrizol Corp. 4,548,025
207,700 Nalco Chemical Co. 10,774,438
-------------
19,527,788
-------------
COMPUTER SOFTWARE & SERVICES--2.1%
28,900 Autodesk, Inc. 855,259
347,000 GTECH Holdings Corp.(1) 8,176,188
-------------
9,031,447
-------------
COMPUTER SYSTEMS--0.5%
94,600 Compaq Computer Corp. 2,240,838
-------------
CONSUMER PRODUCTS--1.0%
57,400 Whirlpool Corp. 4,247,600
-------------
DIVERSIFIED COMPANIES--3.6%
177,700 Minnesota Mining
& Manufacturing Co. 15,448,794
-------------
ELECTRICAL & ELECTRONIC
COMPONENTS--3.7%
171,400 Arrow Electronics, Inc.(1) 3,256,600
155,400 Avnet, Inc. 7,226,100
202,600 Littelfuse, Inc.(1) 3,843,069
71,750 Vishay Intertechnology, Inc.(1) 1,506,750
-------------
15,832,519
-------------

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

ENERGY (PRODUCTION & MARKETING)--5.1%
233,100 Burlington Resources Inc. $ 10,081,575
148,300 Murphy Oil Corp. 7,238,894
113,700 Unocal Corp. 4,505,362
-------------
21,825,831
-------------
ENERGY (SERVICES)--1.6%
199,600 Baker Hughes Inc. 6,686,600
-------------
ENVIRONMENTAL SERVICES--1.4%
142,700 Browning-Ferris Industries, Inc. 6,136,100
-------------
FINANCIAL SERVICES--1.1%
167,500 CIT Group, Inc. (The) Cl A 4,836,562
-------------
FOOD & BEVERAGE--7.3%
868,094 Archer-Daniels-Midland Co. 13,401,201
605,200 Interstate Bakeries Corp. 13,579,175
24,400 Lancaster Colony Corp. 837,225
154,100 Tyson Foods, Inc. Cl A 3,467,250
-------------
31,284,851
-------------
HEALTHCARE--7.7%
104,000 Aetna Inc. 9,301,500
146,500 Beckman Coulter Inc. 7,123,562
351,600 Columbia/HCA Healthcare Corp. 8,020,875
134,800 Dentsply International Inc. 3,900,775
84,500 Lab Holdings Inc. 1,167,156
195,500 Omnicare, Inc. 2,468,188
57,000 Tenet Healthcare Corp.(1) 1,058,062
-------------
33,040,118
-------------
INDUSTRIAL EQUIPMENT & MACHINERY--0.8%
55,900 Tecumseh Products Cl A 3,383,697
-------------
INSURANCE--3.3%
103,700 Argonaut Group, Inc. 2,488,800
143,200 Berkley (W.R.) Corp. 3,584,475
88,400 CNA Financial Corp.(1) 3,563,625
64,800 Chubb Corp. (The) 4,503,600
-------------
14,140,500
-------------
LEISURE--0.8%
52,200 Department 56, Inc.(1) 1,402,875
31,400 Eastman Kodak Co. 2,127,350
-------------
3,530,225
-------------

See Notes to Financial Statements

8 1-800-345-6488

VP Value--Schedule of Investments
- --------------------------------------------------------------------------------

(Continued)

JUNE 30, 1999 (UNAUDITED)

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

MACHINERY & EQUIPMENT--3.6%
69,200 Applied Power Inc. $ 1,890,025
107,900 Cooper Industries, Inc. 5,610,800
413,000 Flowserve Corp. 7,821,188
-------------
15,322,013
-------------
METALS & MINING--0.1%
41,300 Arch Coal Inc. 573,038
-------------
PACKAGING & CONTAINERS--1.8%
66,600 Bemis Co., Inc. 2,647,350
203,500 Tenneco Inc. 4,858,562
-------------
7,505,912
-------------
PAPER & FOREST PRODUCTS--2.0%
58,300 Rayonier, Inc. 2,904,069
191,900 Westvaco Corp. 5,565,100
-------------
8,469,169
-------------
PRINTING & PUBLISHING--1.1%
219,500 Banta Corp. 4,609,500
-------------
RAILROAD--1.1%
104,700 CSX Corp. 4,744,219
-------------
RESTAURANTS--1.7%
415,000 CBRL Group, Inc. 7,171,719
-------------
RETAIL (FOOD & DRUG)--0.4%
31,100 Hannaford Brothers Co. 1,663,850
-------------
RETAIL (GENERAL MERCHANDISE)--1.7%
99,600 Dillard's Inc. Cl A 3,498,450
80,000 Penney (J.C.) Company, Inc. 3,885,000
-------------
7,383,450
-------------
RETAIL (SPECIALTY)--0.3%
67,700 Toys 'R' Us, Inc.(1) 1,400,544
-------------
TELEPHONE COMMUNICATIONS--2.0%
112,000 GTE Corp. 8,484,000
-------------
TOBACCO--1.7%
241,600 UST Inc. 7,066,800
-------------
TRANSPORTATION--1.3%
120,700 XTRA Corp.(1) 5,544,656
-------------

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

UTILITIES--11.2%
226,200 AGL Resources Inc. $ 4,170,562
157,900 Ameren Corp. 6,059,412
231,500 FPL Group, Inc. 12,645,688
119,100 Florida Progress Corp. 4,920,319
186,000 Nevada Power Co. 4,650,000
434,900 Niagara Mohawk Holdings Inc.(1) 6,985,581
21,200 People's Energy Corp. 798,975
133,900 Sierra Pacific Resources 4,870,612
95,400 Washington Gas Light Co. 2,480,400
-------------
47,581,549
-------------
TOTAL COMMON STOCKS 400,345,445
-------------
(Cost $381,625,037)

TEMPORARY CASH INVESTMENTS-- 6.2%

Repurchase Agreement, Morgan Stanley Group,
Inc., (U.S. Treasury obligations), in a joint
trading account at 4.72%, dated 6/30/99,
due 7/1/99 (Delivery value $21,202,780) 21,200,000

Repurchase Agreement, State Street Boston
Corp., (U.S. Treasury obligations), in a joint
trading account at 4.70%, dated 6/30/99,
due 7/1/99 (Delivery value $5,200,679) 5,200,000
-------------

TOTAL TEMPORARY CASH INVESTMENTS 26,400,000
-------------
(Cost $26,400,000)

TOTAL INVESTMENT SECURITIES--100.0% $ 426,745,445
=============
(Cost $408,025,037)

FUTURES CONTRACTS
Underlying
Expiration Face Amount Unrealized
Purchased Date at Value Gain
- ------------------------------------------------------------------------------
40 S&P 500 September
Futures 1999 $13,817,000 $486,674
=====================================

Futures contracts are typically based on a stock index, such as the S&P 500, and
they tend to track the performance of the index while remaining very liquid
(easy to buy and sell). By investing its cash assets in index futures, the fund
can stay fully invested in stocks while having easy access to the money.

NOTES TO SCHEDULE OF INVESTMENTS

(1) Non-income producing.

See Notes to Financial Statements

www.americancentury.com 9

Statement of Assets and Liabilities
- --------------------------------------------------------------------------------

This statement breaks down the fund's ASSETS (such as securities, cash, and
other receivables) and LIABILITIES (money owed for securities purchased,
management fees and other liabilities) as of the last day of the reporting
period. Subtracting the liabilities from the assets results in the fund's NET
ASSETS. The net assets divided by shares outstanding is the share price, or NET
ASSET VALUE PER SHARE. This statement also breaks down the fund's net assets
into capital (shareholder investments) and performance (investment income and
gains/losses).

JUNE 30, 1999 (UNAUDITED)

ASSETS

Investment securities, at value
(identified cost of $408,025,037) (Note 3) ................ $426,745,445
Receivable for investments sold .............................. 1,505,122
Receivable for variation margin on futures contracts ......... 1,000,000
Dividends and interest receivable ............................ 556,455
------------
429,807,022
------------
LIABILITIES
Disbursements in excess of demand deposit cash ............... 89,163
Payable for investments purchased ............................ 3,505,715
Accrued management fees (Note 2) ............................. 344,833
Payable for directors' fees and expenses ..................... 694
------------
3,940,405
------------
Net Assets ................................................... $425,866,617
============

CAPITAL SHARES, $0.01 PAR VALUE
Authorized ................................................... 500,000,000
============
Outstanding .................................................. 62,730,368
============
Net Asset Value Per Share .................................... $ 6.79
============

NET ASSETS CONSIST OF:
Capital (par value and paid-in surplus) ...................... $401,546,994
Undistributed net investment income .......................... 2,458,415
Accumulated undistributed net realized gain
on investment transactions ................................ 2,654,126
Net unrealized appreciation on investments (Note 3) .......... 19,207,082
------------
$425,866,617
============

See Notes to Financial Statements

10 1-800-345-6488

Statement of Operations
- --------------------------------------------------------------------------------

This statement shows how the fund's net assets changed during the reporting
period as a result of the fund's operations. In other words, it shows how much
money the fund made or lost as a result of dividend and interest income, fees
and expenses, and investment gains or losses. It does not include shareholder
transactions and distributions.

FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)

INVESTMENT INCOME

Income:
Dividends ..................................................... 3,837,879
Interest ...................................................... 348,397
-----------
4,186,276
-----------

Expenses (Note 2):
Management fees ............................................... 1,707,537
Directors' fees and expenses .................................. 1,764
-----------
1,709,301
-----------

Net investment income ......................................... 2,476,975
-----------

REALIZED AND UNREALIZED GAIN ON INVESTMENTS (NOTE 3)
Net realized gain on investments .............................. 11,128,609
Change in net unrealized appreciation on investments .......... 30,517,711
-----------

Net realized and unrealized gain on investments ............... 41,646,320
-----------

Net Increase in Net Assets Resulting from Operations .......... $44,123,295
===========

See Notes to Financial Statements

www.americancentury.com 11

Statements of Changes in Net Assets
- --------------------------------------------------------------------------------

This statement shows how the fund's net assets changed over the past two
reporting periods. It details how much a fund grew or shrank as a result of
operations (as detailed on the previous page for the most recent period), income
and capital gain distributions, and shareholder investments and redemptions.

SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED) AND YEAR ENDED DECEMBER 31, 1998

Increase in Net Assets
1999 1998
OPERATIONS
Net investment income ...................... $ 2,476,975 $ 3,186,540
Net realized gain on investments ........... 11,128,609 23,459,587
Change in net unrealized
appreciation on investments ............. 0,517,711 (17,029,740)
------------- -------------
Net increase in net assets resulting
from operations ......................... 44,123,295 9,616,387
------------- -------------

DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ................. (3,196,325) (1,377,964)
From net realized gains on
investment transactions ................. (30,282,222) (16,451,672)
------------- -------------
Decrease in net assets
from distributions ....................... (33,478,547) (17,829,636)
------------- -------------

CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold .................. 125,472,826 178,536,583
Proceeds from reinvestment
of distributions ......................... 33,478,547 17,829,636
Payments for shares redeemed ............... (60,353,811) (59,543,821)
------------- -------------
Net increase in net assets from
capital share transactions .............. 98,597,562 136,822,398
------------- -------------

Net increase in net assets ................. 109,242,310 128,609,149

NET ASSETS
Beginning of period ........................ 316,624,307 188,015,158
------------- -------------
End of period .............................. $ 425,866,617 $ 316,624,307
============= =============

Undistributed net investment income ........ $ 2,458,415 $ 3,177,765
============= =============

TRANSACTIONS IN SHARES OF THE FUND
Sold ....................................... 19,171,629 26,235,037
Issued in reinvestment of distributions .... 5,752,328 2,558,054
Redeemed ................................... (9,262,477) (8,855,524)
------------- -------------
Net increase ............................... 15,661,480 19,937,567
============= =============

See Notes to Financial Statements

12 1-800-345-6488

Notes to Financial Statements
- --------------------------------------------------------------------------------

JUNE 30, 1999 (UNAUDITED)

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION -- American Century Variable Portfolios, Inc., (the
corporation) is registered under the Investment Company Act of 1940 as an
open-end diversified management investment company. VP Value Fund (the fund) is
one of the six 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 are in accordance with generally accepted accounting principles; these
principles may require the use of estimates by fund management.

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.

SECURITY TRANSACTIONS -- Security transactions are accounted for as of the
trade date. 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 accretion of discounts and amortization of premiums.

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.

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 collateral, represented by securities, received
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
securities transferred to ensure 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 fund's policy to distribute all net
investment income and net realized 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 or state
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 expected to be 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 reflect the differing character
of certain income items and net realized gains and losses for financial
statement and tax purposes and may result in reclassification among certain
capital accounts.

ADDITIONAL INFORMATION -- Funds Distributor, Inc. (FDI) is the corporation's
distributor. Certain officers of FDI are also officers of the corporation.

www.americancentury.com 13

Notes to Financial Statements
- --------------------------------------------------------------------------------
(Continued)

JUNE 30, 1999 (UNAUDITED)

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

The corporation has entered into a Management Agreement with ACIM, under
which ACIM 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, fees and 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 annualized fee schedule for the fund is as follows:

1.00% on the first $500 million
0.95% on the next $500 million
0.90% thereafter

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, and
the corporation's transfer agent, American Century Services Corporation.

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

Purchases and sales of investment securities, excluding short-term
investments, totaled $301,853,158 and $252,889,212, respectively.

As of June 30, 1999, accumulated net unrealized appreciation was
$10,287,040, based on the aggregate cost of investments for federal income tax
purposes of $416,458,405, which consisted of unrealized appreciation of
$27,215,141 and unrealized depreciation of $16,928,101.

- --------------------------------------------------------------------------------
4. BANK LOANS

The fund, along with certain other funds managed by ACIM, entered into an
unsecured $570,000,000 bank line of credit agreement with Chase Manhattan Bank.
Borrowings under the agreement bear interest at the Federal Funds rate plus
0.40%. The fund may borrow money for temporary or emergency purposes to fund
shareholder redemptions. The fund did not borrow from the line during the six
months ended June 30, 1999.

- --------------------------------------------------------------------------------
5. FUND EVENTS

The following name change became effective March 1, 1999.

NEW NAME FORMER NAME
FUND: VP Value Fund American Century VP Value

14 1-800-345-6488

VP Value--Financial Highlights
- --------------------------------------------------------------------------------

This table itemizes investment results and distributions on a per-share basis to
illustrate share price changes for each of the last five fiscal years (or less,
if the fund is not five years old). It also includes several key statistics for
each reporting period, including TOTAL RETURN, INCOME RATIO (net income as a
percentage of average net assets), EXPENSE RATIO (operating expenses as a
percentage of average net assets), and PORTFOLIO TURNOVER (a gauge of the fund's
trading activity).

<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED DECEMBER 31 (EXCEPT AS NOTED)

1999(1) 1998 1997 1996(2)
PER-SHARE DATA
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ........ $ 6.73 $ 6.93 $ 5.58 $ 5.00
----------- ----------- ----------- -----------
Income From Investment Operations
Net Investment Income ..................... 0.04 0.08(3) 0.07 0.05
Net Realized and Unrealized Gain
on Investment Transactions ............. 0.73 0.27 1.37 0.56
----------- ----------- ----------- -----------

Total From Investment Operations .......... 0.77 0.35 1.44 0.61
----------- ----------- ----------- -----------

Distributions
From Net Investment Income ................ (0.07) (0.04) (0.04) (0.03)
From Net Realized Gains on
Investment Transactions ................ (0.64) (0.51) (0.05) --
----------- ----------- ----------- -----------

Total Distributions ....................... (0.71) (0.55) (0.09) (0.03)
----------- ----------- ----------- -----------

Net Asset Value, End of Period .............. $ 6.79 $ 6.73 $ 6.93 $ 5.58
=========== =========== =========== ===========

Total Return(4) ........................... 13.15% 4.81% 26.08% 12.28%

RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets .................... 1.00%(5) 1.00% 1.00% 1.00%(5)
Ratio of Net Investment Income
to Average Net Assets .................... 1.45%(5) 1.21% 1.60% 1.98%(5)
Portfolio Turnover Rate ..................... 76% 158% 138% 49%
Net Assets, End of Period (in thousands) .... $ 425,867 $ 316,624 $ 188,015 $ 23,894
</TABLE>

(1) Six months ended June 30, 1999 (unaudited).

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

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

(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.

See Notes to Financial Statements

www.americancentury.com 15

Background Information
- --------------------------------------------------------------------------------

PORTFOLIO MANAGERS
VP Value
PHIL DAVIDSON
SCOTT MOORE

INVESTMENT PHILOSOPHY AND POLICIES

Conservative investment practices are the hallmark of American Century's
Variable Portfolios Value Fund. 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.

VP VALUE'S investment objective is long-term capital growth, with income as
a secondary objective. To achieve this objective, the fund invests in the equity
securities of well-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 following indices are used in the report to serve as fund performance
comparisons. 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 dominant
industries. Created by Standard & Poor's Corporation, it is considered to be a
broad measure of U.S. stock market 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 stocks.

The S&P 500/BARRA GROWTH index is a capitalization-weighted index consisting
of S&P 500 stocks that have higher price-to-book ratios and, in general, share
other characteristics associated with "growth" stocks.

The S&P MIDCAP 400/BARRA VALUE index is a capitalization-weighted index
consisting of S&P MidCap 400 stocks that have lower price-to-book ratios and, in
general, share other characteristics associated with "value" stocks.

The S&P SMALLCAP 600/BARRA VALUE index is a capitalization-weighted index
consisting of S&P 600 stocks that have lower price-to-book ratios and, in
general, share other characteristics associated with "value" stocks.

16 1-800-345-6488

Glossary
- --------------------------------------------------------------------------------

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 fiscal year-by-year
results. For fiscal year-by-year total returns, please refer to the "Financial
Highlights" on page 15.

INVESTMENT TERMS

* MEDIAN MARKET CAPITALIZATION-- Market Capitalization (market cap) is the total
value of a company's stock and is calculated by multiplying the number of
outstanding common shares by the current share price. The company whose market
cap is in the middle of the portfolio is the median market cap. Half the
companies in the portfolio have values greater than the median, and half have
values that are less. If there is an even number of companies, then the median
is the average of the two companies in the middle.

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

* 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.

* 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.)

* 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.)

TYPES OF STOCKS

* 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.

* 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-- stocks of companies that have experienced above-average
earnings growth and are expected to continue such growth. These stocks often
sell at high P/E ratios. Examples can include the stocks of high-tech,
healthcare and consumer staple companies.

* 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.

* 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 400.

* 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.

* 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.

www.americancentury.com 17

Glossary
- --------------------------------------------------------------------------------
(Continued)

FUND CLASSIFICATIONS

INVESTMENT OBJECTIVE

The investment objective may be based on the fund's objective as stated in
its prospectus or fund profile, or the fund's categorization by independent
rating organizations based on its management style.

* CAPITAL PRESERVATION -- offers taxable and tax-free money market funds for
relative stability of principal and liquidity.

* INCOME -- offers funds that can provide current income and competitive yields,
as well as a strong and stable foundation and generally lower volatility levels
than stock funds.

* GROWTH & INCOME -- offers funds that emphasize both growth and income provided
by either dividend- paying equities or a combination of equity and fixed-income
securities.

* GROWTH -- offers funds with a focus on capital appreciation and long-term
growth, generally providing high return potential with corresponding high price
fluctuation risk.

RISK

The classification of funds by risk category is based on quantitative
historical measures as well as qualitative prospective measures. It is not
intended to be a precise indicator of future risk or return levels. The degree
of risk within each category can vary significantly, and some fund returns have
historically been higher than more aggressive funds or lower than more
conservative funds. Please be aware that the fund's category may change over
time. Therefore, it is important that you read a fund's prospectus or fund
profile carefully before investing to ensure its objectives, policies and risk
potential are consistent with your needs.

* CONSERVATIVE -- these funds generally provide lower return potential with
either low or minimal price fluctuation risk.

* MODERATE -- these funds generally provide moderate return potential with
moderate price fluctuation risk.

* AGGRESSIVE -- these funds generally provide high return potential with
corresponding high price fluctuation risk.

18 1-800-345-6488

Notes
- --------------------------------------------------------------------------------

www.americancentury.com 19

Notes
- --------------------------------------------------------------------------------

20 1-800-345-6488

[inside back cover]

- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE - CAPITAL PRESERVATION
- --------------------------------------------------------------------------------

RISK LEVEL - CONSERVATIVE

TAXABLE MONEY MARKETS TAX-FREE MONEY MARKETS
Premium Capital Reserve FL Municipal Money Market
Prime Money Market CA Municipal Money Market
Premium Government Reserve CA Tax-Free Money Market
Government Agency Tax-Free Money Market
Money Market
Capital Preservation

- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE - INCOME
- --------------------------------------------------------------------------------

RISK LEVEL - AGGRESSIVE

TAXABLE BONDS TAX-FREE BONDS
Target 2025* CA High-Yield Municipal
Target 2020* High-Yield Municipal
Target 2015*
Target 2010*
High-Yield
International Bond

RISK LEVEL - MODERATE

TAXABLE BONDS TAX-FREE BONDS
Long-Term Treasury CA Long-Term Tax-Free
Target 2005* Long-Term Tax-Free
Bond CA Insured Tax-Free
Premium Bond

RISK LEVEL - CONSERVATIVE

TAXABLE BONDS TAX-FREE BONDS
Intermediate-Term Bond CA Intermediate-Term Tax-Free
Intermediate-Term Treasury AZ Intermediate-Term Municipal
GNMA FL Intermediate-Term Municipal
Inflation-Adjusted Treasury Intermediate-Term Tax-Free
Limited-Term Bond CA Limited-Term Tax-Free
Target 2000* Limited-Term Tax-Free
Short-Term Government
Short-Term Treasury

- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE - GROWTH AND INCOME
- --------------------------------------------------------------------------------

RISK LEVEL - AGGRESSIVE

DOMESTIC EQUITY
Small Cap Quantitative
Small Cap Value

RISK LEVEL - MODERATE

ASSET ALLOCATION/BALANCED DOMESTIC EQUITY SPECIALTY
Strategic Allocation: Equity Growth Utilities
Aggressive Equity Index Real Estate
Balanced Tax-Managed Value
Strategic Allocation: Income & Growth
Moderate Value
Strategic Allocation: Equity Income
Conservative

- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE - GROWTH
- --------------------------------------------------------------------------------

RISK LEVEL - AGGRESSIVE

DOMESTIC EQUITY SPECIALTY INTERNATIONAL
New Opportunities Global Gold Emerging Markets
Giftrust(reg.tm) International Discovery
Vista International Growth
Heritage Global Growth
Growth
Ultra(reg.tm)
Select

RISK LEVEL - MODERATE

SPECIALTY
Global Natural Resources

The investment objective may be based on the fund's objective as stated in its
prospectus or fund profile, or the fund's categorization by independent rating
organizations based on its management style.

The classification of funds by risk category is based on quantitative historical
measures as well as qualitative prospective measures. It is not intended to be a
precise indicator of future risk or return levels. The degree of risk within
each category can vary significantly, and some fund returns have historically
been higher than more aggressive funds or lower than more conservative funds.
Please be aware that a fund's category may change over time. Therefore, it is
important that you read a fund's prospectus or fund profile carefully before
investing to ensure its objectives, policies and risk potential are consistent
with your needs.

For a definition of fund categories, see the Glossary.

* While listed within the Income investment objective, the Target funds do not
pay current dividend income. Income dividends are distributed once a year in
December. The Target funds are listed in all three risk categories due to the
dramatic price volatility investors may experience during certain market
conditions. If held to their target dates, however, they can offer a
conservative, dependable way to invest for a specific time horizon.

Please call 1-800-345-2021 for a prospectus or profile on any American Century
fund. These documents contain important information including charges and
expenses, and you should read them carefully before you invest or send money.

[back cover]

[american century logo(reg.sm)]
American
Century

P.O. BOX 419385
KANSAS CITY, MISSOURI 64141-6385

WWW.AMERICANCENTURY.COM

INVESTOR RELATIONS
1-800-345-6488

AUTOMATED INFORMATION LINE
1-800-345-8765

FAX: 816-340-4360

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-345-1833

AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.

INVESTMENT MANAGER
AMERICAN CENTURY INVESTMENT MANAGEMENT, INC.
KANSAS CITY, MISSOURI

THIS REPORT AND THE STATEMENTS IT CONTAINS 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 Investments BULK RATE
P.O. Box 419385 U.S. POSTAGE PAID
Kansas City, MO 64141-6385 AMERICAN CENTURY
www.americancentury.com COMPANIES

9908 Funds Distributor, Inc.
SH-SAN-17186 (c)1999 American Century Services Corporation
<PAGE>
[front cover]

APRIL 30, 1999

SEMIANNUAL REPORT
- ------------------
AMERICAN CENTURY
VARIABLE PORTFOLIOS

[graphic of stairs]

VP CAPITAL APPRECIATION

[american century logo(reg.sm)]
American
Century

[inside front cover]

VARIABLE PORTFOLIOS

VP CAPITAL APPRECIATION

Our Message to You
- --------------------------------------------------------------------------------

[Photo of James E. Stowers III, seated, with James E. Stowers, Jr.]

The first half of 1999 was marked by a welcome shift in market sentiment
for VP Capital Appreciation. Investors who were willing to invest only in a
handful of large, popular growth stocks suddenly moved to previously-out-of-
favor small and midsize companies. Such 180-degree turns are typical of the ebb
and flow of market psychology over time, and VP Capital Appreciation's
experience is a textbook example of why your investment team avoids trying to
time market changes. Shifts in market direction are typically quick and
powerful-- VP Capital Appreciation racked up a 13% return for the second quarter
alone.

The resurgence of smaller growth companies ended a dry spell for Capital
Appreciation. As you'll see in the portfolio managers' discussion, Capital
Appreciation distinguished itself by more than doubling the return of its
benchmark, and landing in the top quartile of its peer group for the period.

Also on the investment front, we continued to expand the American Century
investment team, which has doubled over the past three years. In general, our
portfolio teams have excellent depth with an array of experienced managers and
analysts, and we remain committed to building and maintaining a talented
management group.

As always, we appreciate your continued confidence in American Century.

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 Vice Chairman of the Board and
Chief Executive Officer

[right margin]

Table of Contents
Report Highlights ...................................................... 2
Market Perspective ..................................................... 3
VP CAPITAL APPRECIATION
Performance Information ................................................ 4
Management Q&A ......................................................... 5
Portfolio at a Glance .................................................. 5
Top Ten Holdings ....................................................... 6
Top Five Industries .................................................... 6
Types of Investments ................................................... 7
Schedule of Investments ................................................ 8
Financial Highlights ................................................... 15
FINANCIAL STATEMENTS
Statement of Assets and
Liabilities ............................................................ 10
Statement of Operations ................................................ 11
Statements of Changes
in Net Assets .......................................................... 12
Notes to Financial
Statements ............................................................. 13
OTHER INFORMATION
Background Information
Portfolio Managers .................................................. 16
Investment Philosophy
and Policies ...................................................... 16
Comparative Indices ................................................. 16
Glossary ............................................................... 17

*This letter includes a Year 2000 readiness disclosure.

www.americancentury.com 1

Report Highlights
- --------------------------------------------------------------------------------

MARKET PERSPECTIVE

* The six-month period saw a dramatic shift in market sentiment. Investors who
had previously been wedded to a small group of large growth stocks, suddenly
moved into smaller and midsize companies, prompting a long-awaited rally in
that corner of the market. With the economy continuing its strong run,
cyclical stocks also gained ground.

* Nearly every stock category--small, midsize and large, value and growth
alike--produced respectable results for the period.

* The second quarter belonged to smaller firms. The S&P MidCap 400, a proxy for
midsize stocks and Capital Appreciation's benchmark, gained 14.15% in the
second quarter alone. The S&P 500, representative of the broader market, was
up 7.05%.

* On the final day of the six-month period, the Federal Reserve Board raised
short-term interest rates a quarter of a point to 5%. Higher interest rates
are normally not good for stocks. In this instance, however, the market
rallied as the Fed indicated that it had shed its bias toward higher rates.

VP CAPITAL APPRECIATION

* VP Capital Appreciation rode a rally in small- and mid-cap stocks to a
double-digit gain that was twice that of its benchmark.

* The fund was in an enviable position over the period with its largest holdings
turning in the best results. Its ten largest holdings accounted for more than
30% of assets, and six of its best contributors came from that list.

* Companies involved in specialized software, telecommunications and cable TV
led the fund. On the minus side, the fund didn't get the boost it had hoped
for from its complement of healthcare stocks. Investors are trying to
anticipate how potential regulatory changes involving Medicare might affect
the sector.

[left margin]
VP CAPITAL APPRECIATION
TOTAL RETURNS: AS OF 6/30/99
6 Months 16.08%*
1 Year 12.58%
INCEPTION DATE: 11/20/87
NET ASSETS: $454.6 million

* Not annualized.

Investment terms are defined in the Glossary on pages 17-18.

2 1-800-345-6488

Market Perspective from James E. Stowers III
- --------------------------------------------------------------------------------
[photo of James E. Stowers III]

James E. Stowers III, Chief Executive Officer of American Century

MARKET PERFORMANCE WAS BROADER

Common stock investors will remember the first half of 1999 as a period
when almost every stock category had its moment in the sun--small, midsize and
large, growth and value alike. When we closed our six-month books on June 30,
nearly every category had posted a double-digit return. The second quarter was
especially good for small- and mid-cap stocks, which had been trailing their
larger counterparts for some time.

THE FEDERAL RESERVE STEPS IN

THE S&P 500 SLOWS

In April, the attractive prices of smaller and midsize companies were
beacons for investors concerned that valuations attached to the big growth
companies might be on the edge of uncharted territory. At the same time, with
the economy continuing to hum, the perception arose that perhaps the longest
economic expansion in U.S. history might not be ending after all, but instead
beginning a fresh growth cycle. Given that forecast, the stocks of economically
sensitive companies, such as Dow Chemical and Caterpillar, shot up. The Dow
Jones Industrial Average jumped 17.14% in the second quarter, trouncing the S&P
500's 7.05% increase.

Meanwhile, the S&P MidCap 400, the midsize stock benchmark, gained 14.15%
for the second three months, while the Russell 2000, a proxy for smaller
companies, catapulted 15.55%. In the value universe, the S&P 500/BARRA Value
Index, a popular measure of value stocks, was up 10.80%.

THE FEDERAL RESERVE STEPS BACK IN

On the last day of the six-month period covered here, the Federal Reserve,
citing firming foreign economies and continuing brisk business activity in the
United States, raised short-term interest rates a quarter of a point to 5%. As
it did so, in what both the bond and stock markets took as good news, the Fed
said it had dropped its bias toward higher borrowing costs.

GOOD BUSINESSES, GOOD STOCKS

How long a particular size, type or style of stock might be in favor is
anyone's guess, and we at American Century spend little time worrying about it.
Instead, our focus is always on helping shareholders build their capital over
time. We do that by following disciplined investment strategies--regardless of
market activity--that are centered on owning the best businesses available, no
matter which sector of the economy they represent.

[right margin]

"...ATTRACTIVE PRICES OF SMALLER AND MIDSIZE COMPANIES WERE BEACONS FOR
INVESTORS CONCERNED THAT VALUATIONS ATTACHED TO THE BIG GROWTH COMPANIES
MIGHT BE ON THE EDGE OF UNCHARTED TERRITORY."

MARKET RETURNS
FOR THE SIX MONTHS ENDED JUNE 30, 1999

S&P 500 12.23%
S&P MIDCAP 400 6.87%
RUSSELL 2000 9.28%

Source: Lipper Inc.

These indices represent the performance of large-, medium-, and
small-capitalization stocks.

[mountain chart data below]

MARKET PERFORMANCE (GROWTH OF $1.00)
FOR THE SIX MONTHS ENDED JUNE 30, 1999

S&P 500 S&P MidCap 400 Russell 2000
12/31/98 $1.00 $1.00 $1.00
1/31/99 $1.04 $0.96 $1.01
2/28/99 $1.01 $0.91 $0.93
3/31/99 $1.05 $0.94 $0.95
4/30/99 $1.09 $1.01 $1.03
5/31/99 $1.06 $1.01 $1.05
6/30/99 $1.12 $1.07 $1.09

Value on 6/30/99
S&P 500 $1.12
S&P MidCap 400 $1.07
Russell 2000 $1.09

www.americancentury.com 3

VP Capital Appreciation--Performance
- --------------------------------------------------------------------------------

TOTAL RETURNS AS OF JUNE 30, 1999

VP CAPITAL S&P MIDCAP S&P MIDCAP
APPRECIATION 400 INDEX S&P 500 400/BARRA GROWTH
6 MONTHS(1) ............. 16.08% 6.87% 12.23% 8.19%
1 YEAR .................. 12.58% 17.18% 22.75% 30.31%
AVERAGE ANNUAL RETURNS
3 YEARS ................. 1.21% 22.48% 29.00% 26.84%
5 YEARS ................. 7.95% 22.28% 27.81% 24.83%
10 YEARS ................ 8.78% 17.87% 18.73% N/A
LIFE OF FUND(2) ......... 9.28% 19.83%(3) 19.33% N/A

(1) Returns for periods less than one year are not annualized.

(2) The fund's inception date was 11/20/87.

(3) Since 11/30/87, the date nearest the fund's inception for which data are
available.

See pages 16-18 for information about the indices and returns.

[mountain chart data below]

GROWTH OF $10,000 OVER 10 YEARS

Value on 6/30/99
S&P 500 Index $55,667
S&P MidCap 400 Index $51,759
VP Capital Apprecation $23,201

VP Capital S&P MidCap 400 S&P 500
Appreciation Index Index
6/30/89 $10,000 $10,000 $10,000
6/30/90 $12,303 $11,543 $11,649
6/30/91 $12,644 $13,025 $12,510
6/30/92 $13,965 $15,441 $14,187
6/30/93 $16,188 $18,945 $16,121
6/30/94 $15,829 $18,935 $16,348
6/30/95 $20,111 $23,168 $20,611
6/30/96 $22,373 $28,169 $25,969
6/30/97 $20,384 $34,753 $34,983
6/30/98 $20,606 $44,170 $45,531
6/30/99 $23,201 $51,759 $55,667

The graph at left shows the growth of a $10,000 investment in the fund over 10
years, while the chart below shows the fund's year-by-year performance. The S&P
MidCap 400 Index and the S&P 500 Index are provided for comparison. VP Capital
Appreciation's total returns include operating expenses (such as transaction
costs and management fees) that reduce returns, while the total returns of the
indices do not. 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.

[bar chart data below]
ONE-YEAR RETURNS OVER 10 YEARS (PERIODS ENDING JUNE 30)

VP Capital S&P MidCap
Appreciation 400 Index
6/30/99 23.03% 15.43%
3/30/91 2.77% 12.84%
6/30/92 10.45% 18.55%
6/30/93 15.92% 22.69%
6/30/94 -2.22% -0.06%
6/30/95 27.05% 22.35%
6/30/96 11.25% 21.58%
6/30/97 -8.89% 23.38%
6/30/98 1.09% 27.10%
6/30/99 12.58% 17.18%

4 1-800-345-6488

VP Capital Appreciation--Q&A
- --------------------------------------------------------------------------------
[photo of Harold Bradley and Linda Peterson]
An interview with Harold Bradley and Linda Peterson, portfolio managers on
the VP Capital Appreciation investment team.

HOW DID THE FUND PERFORM FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 1999?

VP Capital Appreciation turned in strong results. It gained 16.08%, more
than twice the 6.87% increase posted by its benchmark, the Standard & Poor's
MidCap 400 Index.

VP Capital Appreciation's investment approach centers on owning companies
in the middle of the capitalization range whose earnings and revenues are
growing at an accelerating rate. Carrying large positions in successful
companies is a hallmark of our earnings-based investment approach. VP Capital
Appreciation's ten largest investments accounted for more than a third of the
fund, and six of its best contributors were on the top ten list.

WHICH COMPANIES CONTRIBUTED TO PERFORMANCE?

Gemstar International Group, our largest holding, contributed 120% over the
period. This company makes VCR technology called Guide Plus. Its flagship
product enables a consumer to record shows by punching in the show's numerical
code found in TV listings. Every major VCR brand employs Gemstar's technology.
More importantly, the company owns patents for on-screen-interactive program
guides that will be a viewer's best friend in a digital world with more than 100
channels. We believe the program guide could well become a major source of
advertising revenue for Gemstar.

Immunex, a biotechnology company, gained more than 100% for the period. The
company markets a new drug called Enbrel, for the treatment of rheumatoid
arthritis, which is quickly gaining market share after being approved by the FDA
last November. We sold the stock near the end of the period and redeployed the
profits in other companies in the biotech sector we think can follow in
Immunex's footsteps.

Global TeleSystems, our second-largest holding, gained 45% for the period.
This telecom company provides a broad range of services to businesses, other
communications providers and consumers in Russia and Central Europe. Through
subsidiaries and joint ventures abroad, the company owns the most extensive
fiber optic network in Europe and transports voice, data and video traffic
throughout the region.

[right margin]

"CARRYING LARGE POSITIONS IN SUCCESSFUL COMPANIES IS A HALLMARK OF OUR
EARNINGS-BASED INVESTMENT APPROACH."

PORTFOLIO AT A GLANCE
6/30/99 12/31/98
NO. OF COMPANIES 84 84
MEDIAN P/E RATIO 30.2 29.3
MEDIAN MARKET $4.42 $3.37
CAPITALIZATION BILLION BILLION
PORTFOLIO TURNOVER 63%(1) 206%(2)

(1) Six months ended 6/30/99.

(2) Year ended 12/31/98.

Investment terms are defined in the Glossary on pages 17-18

www.americancentury.com 5

VP Capital Appreciation--Q&A
- --------------------------------------------------------------------------------
(Continued)

WHICH STOCKS DID NOT LIVE UP TO YOUR EXPECTATIONS?

The Metzler Group was a disappointment. A leading supplier of consulting
services to energy and utility companies, Metzler built itself primarily through
acquisitions. The stock fell victim to investor perceptions that proposed
changes in accounting standards would impede future growth and acquisition
strategies. While we reduced our position, we still hold Metzler in our
portfolio. The company's internally generated growth exceeds 20% and its
earnings and revenues continue to accelerate.

We also didn't get the boost we'd hoped for from Bergen Brunswig, a
distributor of drugs to healthcare providers and retailers. Brunswig and three
other firms are vying for market share and the competition is putting pressure
on prices. The firm also made an acquisition during the period that worried
investors. We sold the stock.

We also sold our stake in Network Associates, a supplier of network
management and security software. The firm's earnings began slowing this year as
companies postponed software upgrades to concentrate on Year 2000 compliance. We
exited the stock quickly and early, avoiding the brunt of its decline.

WHAT MAJOR CHANGES DID YOU MAKE IN THE PORTFOLIO'S STRUCTURE?

We added to our investments in telecommunications companies, including a
new position in Sprint PCS, the telecom giant's wireless service. Sprint
promises to be the industry leader in wireless communications. The company built
the largest digital wireless network in the country, and subscribers and minutes
of use are growing rapidly.

We focused on the global cable TV industry, investing in companies involved
in both infrastructure and program content. One firm worthy of mention is
UnitedGlobalCom, an international cable company based in Denver. The company
provides cable service (and with it Internet and telephone service) in Europe,
Australia and Latin America. We think we're at the right place at the right time
with

[left margin]

TOP TEN HOLDINGS
% OF FUND INVESTMENTS
AS OF AS OF
6/30/99 12/31/98
GEMSTAR INTERNATIONAL
GROUP LTD. 6.9% 2.9%
GLOBAL TELESYSTEMS
GROUP, INC. 4.9% 3.1%
MONTANA POWER CO. 4.5% 1.8%
ASTEC INDUSTRIES, INC. 3.6% 2.7%
UNITEDGLOBALCOM CI A 3.6% --
VERITY, INC. 2.6% --
ALBERTA ENERGY CO.
LTD. ORD 2.6% 1.5%
CITRIX SYSTEMS, INC. 2.3% --
PREMIER PARKS INC. 2.2% 1.9%
SCHLUMBERGER LTD. 2.1% --

TOP FIVE INDUSTRIES
% OF FUND INVESTMENTS
AS OF AS OF
6/30/99 12/31/98
COMPUTER SOFTWARE
& SERVICES 12.1% 8.1%
LEISURE 11.4% 4.1%
ELECTRICAL & ELECTRONIC
COMPONENTS 8.9% 5.8%
BROADCASTING & MEDIA 8.8% 9.1%
COMMUNICATIONS
EQUIPMENT 6.5% 5.1%

6 1-800-345-6488

VP Capital Appreciation--Q&A
- --------------------------------------------------------------------------------
(Continued)

this stock. The cable industry in those regions is a few years behind that of
the United States, and we're confident that UnitedGlobalCom will follow the same
path to profits as its U.S. counterparts did: providing value-added services for
subscribers, such as digital cable.

Energy also merited investments during the period. This resulted from the
fact that crude oil prices reached a trough in the fourth quarter of 1998 and
many suppliers shut down unprofitable wells. When demand subsequently began to
rise, the supply of oil could not be increased quickly enough, thereby boosting
the prices of energy-related shares.

One other holding we're optimistic about is Premier Parks, the firm that
runs the Six Flags theme parks. The company improved its margins thanks to
cost-cutting efforts, and has struck a deal with Warner Brothers to use WB's
cartoon characters at its parks.

During the period, we cut in half our exposure in healthcare stocks. Good
growth stories in healthcare, particularly involving mid-cap companies, are in
short supply. Uncertainty about earnings in the sector, some of it stemming from
regulatory changes involving Medicare, make this an undesirable sector. Late
last year, a new nursing home payment plan was established that restricts
Medicare reimbursements, and a current proposal would introduce a Medicare
prescription drug benefit, another potential pressure on earnings.

WHAT IS YOUR OUTLOOK FOR VP CAPITAL APPRECIATION?

The bulk of VP Capital Appreciation's gain over the last six months came in
the second quarter--the fund gained roughly 10% from April through June. This is
a sign that growth investors are finding it harder to overlook the tremendously
attractive prices in the mid-cap space. We hope that sentiment will continue. In
any event, one thing we can control is the type of companies we want your fund
invested in: growing, successful companies with good products and services and
farsighted management.

[right margin]

"...THE FUND GAINED ROUGHLY 10% FROM APRIL TO JUNE. THIS IS A SIGN THAT
INVESTORS ARE FINDING IT HARDER TO OVERLOOK THE TREMENDOUSLY ATTRACTIVE PRICES
IN THE MID-CAP SPACE."

[pie charts data below]

TYPES OF INVESTMENTS IN THE PORTFOLIO

AS OF JUNE 30, 1999
Temporary Cash Investments 1.6%
Common Stocks 98.4%

AS OF DECEMBER 31, 1998
Temporary Cash Investments 1.2%
Common Stocks 98.8%

www.americancentury.com 7

VP Capital Appreciation--Schedule of Investments
- --------------------------------------------------------------------------------

NOTE: For securities denominated in foreign currencies, the market value is
translated into U.S. dollars based on exchange rates as of the last day of
reporting period.

JUNE 30, 1999 (UNAUDITED)
Shares Value
- --------------------------------------------------------------------------------
COMMON
STOCKS--98.4%

AIRLINES--0.4%
61,100 Northwest Airlines Corp. Cl A(1) $ 1,981,931
----------------------------
BANKING--3.1%
12,800 Dexia France ORD 1,711,865
32,000 Hudson United Bancorp 980,000
31,700 Huntington Bancshares Inc. 1,109,500
41,685 Old Kent Financial Corp. 1,745,559
140,100 Toronto-Dominion Bank (The) ORD 6,347,865
27,700 Zions Bancorporation 1,762,413
----------------------------
13,657,202
----------------------------
BIOTECHNOLOGY--2.5%
232,900 Biomatrix, Inc.(1) 5,036,462
133,400 Centocor, Inc.(1) 6,223,944
----------------------------
11,260,406
----------------------------
BROADCASTING & MEDIA--8.8%
132,000 Adelphia Communications
Corp. Cl A(1) 8,460,375
46,000 Comcast Corp. Cl A 1,768,125
69,800 Comcast Corp. Special Cl A 2,504,075
32,200 Cox Communications, Inc. Cl A(1) 1,185,361
135,000 Salon.com Inc.(1) 1,286,719
237,300 UnitedGlobalCom Cl A(1) 16,054,828
205,400 USA Networks Inc.(1) 8,235,256
---------------------------
39,494,739
---------------------------
BUSINESS SERVICES & SUPPLIES--0.8%
122,500 Metzler Group, Inc. (The)(1) 3,380,234
---------------------------
CHEMICALS & RESINS--2.4%
64,500 Hercules Inc. 2,535,656
69,500 Lubrizol Corp. 1,893,875
56,100 Rohm and Haas Co. 2,405,288
79,000 Union Carbide Corp. 3,851,250
--------------------------
10,686,069
--------------------------

COMMUNICATIONS EQUIPMENT--6.5%
180,200 ADC Telecommunications, Inc.(1) 8,204,731
163,000 ANTEC Corp.(1) 5,210,906
46,800 Aware, Inc.(1) 2,152,800
6,800 Copper Mountain Networks, Inc.(1) 524,450
54,500 General Instrument Corp.(1) 2,316,250
13,300 Juniper Networks, Inc.(1) 1,983,778
61,400 QUALCOMM Inc.(1) 8,812,819
-------------------------
29,205,734
-------------------------

Shares Value
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES--12.1%
59,300 Adobe Systems Inc. $ 4,871,866
178,483 Citrix Systems, Inc.(1) 10,056,402
90,000 Concord EFS, Inc.(1) 3,810,937
71,600 Intuit Inc.(1) 6,457,425
239,800 Novell, Inc.(1) 6,354,700
73,000 PeopleSoft, Inc. 1,261,531
65,500 SAP AG ADR 2,267,937
59,000 Security Dynamics
Technologies, Inc.(1) 1,246,375
212,400 Verity, Inc.(1) 11,502,788
121,900 WorldGate Communications, Inc.(1) 6,243,566
------------------------
54,073,527
------------------------
CONSTRUCTION & PROPERTY
DEVELOPMENT--2.6%
478,640 CRH plc ORD 8,461,227
57,300 Martin Marietta Materials, Inc. 3,380,700
------------------------
11,841,927
------------------------
CONTROL & MEASUREMENT--2.0%
167,000 Millipore Corp. 6,773,938
44,400 Waters Corp.(1) 2,358,750
------------------------
9,132,688
------------------------
ELECTRICAL & ELECTRONIC
COMPONENTS--8.9%
117,800 Altera Corp.(1) 4,332,831
160,900 Analog Devices, Inc.(1) 8,075,169
24,200 KLA-Tencor Corporation(1) 1,569,219
152,600 National Semiconductor Corp.(1) 3,862,688
17,400 Novellus Systems, Inc.(1) 1,187,006
69,000 PMC-Sierra, Inc.(1) 4,068,844
346,375 Vishay Intertechnology, Inc.(1) 7,273,875
60,100 Vitesse Semiconductor Corp.(1) 4,066,141
92,700 Xilinx, Inc.(1) 5,309,972
-----------------------
39,745,745
-----------------------
ENERGY (PRODUCTION & MARKETING)--3.5%
358,100 Alberta Energy Co. Ltd. ORD 11,497,509
98,300 Burlington Resources Inc. 4,251,475
-----------------------
15,748,984
-----------------------
ENERGY (SERVICES)--3.4%
184,800 Ballard Power Systems Inc.(1) 5,902,050
146,400 Schlumberger Ltd. 9,323,850
-----------------------
15,225,900
-----------------------
FINANCIAL SERVICES--3.2%
54,400 Comdisco, Inc. 1,394,000
1,442 Julius Baer Holding AG ORD 4,108,473

See Notes to Financial Statements

8 1-800-345-6488

VP Capital Appreciation--Schedule of Investments
- --------------------------------------------------------------------------------
(Continued)
JUNE 30, 1999 (UNAUDITED)

Shares Value
- --------------------------------------------------------------------------------
203,900 MBNA Corp. $ 6,244,438
96,600 TD Waterhouse Group, Inc.(1) 2,421,038
----------------------
14,167,949
----------------------
FOOD & BEVERAGE--0.1%
53,500 Ravenswood Winery, Inc.(1) 563,422
----------------------
HEALTHCARE--1.5%
90,000 Bausch & Lomb Inc. Cl A 6,885,000
----------------------
LEISURE--11.4%
145,100 Callaway Golf Co. 2,122,087
469,200 Gemstar International Group Ltd.(1) 30,644,625
65,400 Harley-Davidson, Inc. 3,556,125
262,500 Premier Parks Inc.(1) 9,646,875
135,800 TV Guide, Inc. Cl A(1) 4,960,944
----------------------
50,930,656
----------------------
MACHINERY & EQUIPMENT--4.5%
392,000 Astec Industries, Inc.(1) 16,121,000
40,900 Cooper Industries, Inc. 2,126,800
65,000 Kennametal Inc. 2,015,000
----------------------
20,262,800
----------------------
METALS & MINING--1.5%
200,550 Stillwater Mining Co.(1) 6,555,478
----------------------
OFFICE EQUIPMENT & SUPPLIES--0.7%
48,900 Avery Dennison Corp. 2,952,337
----------------------
PHARMACEUTICALS--1.3%
128,200 Forest Laboratories, Inc.(1) 5,929,250
----------------------
RAILROAD--0.6%
42,400 Union Pacific Corp. 2,472,450
----------------------
RETAIL (APPAREL)--1.6%
107,200 Abercrombie & Fitch Co. Cl A (1) 5,145,600

38,010 Intimate Brands, Inc. 1,800,724
----------------------
6,946,324
---------------------

RETAIL (GENERAL MERCHANDISE)--0.6%

103,100 Family Dollar Stores, Inc. 2,474,400
----------------------
RETAIL (SPECIALTY)-1.5%
131,600 Hasbro, Inc. 3,676,575
93,900 Ticketmaster Online-
CitySearch, Inc. Cl B(1) 2,837,541
----------------------
6,514,116
----------------------

Shares Value
- --------------------------------------------------------------------------------
TELEPHONE COMMUNICATIONS--5.2%
270,600 Global TeleSystems Group, Inc.(1) $ 21,910,144
63,400 Primus Telecommunications
Group, Inc.(1) 1,420,556
----------------------
23,330,700
----------------------
UTILITIES--4.5%
287,300 Montana Power Co. 20,254,650
----------------------
WIRELESS COMMUNICATIONS--3.2%
150,600 Sprint PCS(1) 8,603,025
114,600 VoiceStream Wireless Corp.(1) 3,262,519
82,600 Western Wireless Corp. Cl A(1) 2,232,781
----------------------
14,098,325
----------------------
TOTAL COMMON STOCKS 439,772,943
----------------------
(Cost $315,926,471)

TEMPORARY CASH INVESTMENTS--1.6%
Repurchase Agreement, Morgan Stanley Group,
Inc., (U.S. Treasury obligations), in a joint
trading account at 4.72%, dated 6/30/99,
due 7/1/99 (Delivery value $7,100,931) 7,100,000
----------------------
(Cost $7,100,000)

TOTAL INVESTMENT SECURITIES--100.0% $446,872,943
======================
(Cost $323,026,471)

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Contracts Settlement Unrealized
to Sell Date Value Gain
- --------------------------------------------------------------------------------
3,183,215 CHF 7/30/99 $2,053,964 $18,779
1,872,185 EURO 7/30/99 1,933,052 15,315
---------------------------------
$3,987,016 $34,094
================================

(Value on Settlement Date $4,021,110)

Forward foreign currency exchange contracts are designed to protect the fund's
foreign investments against declines in foreign currencies (also known as
hedging). The contracts are called "forward" because they allow the fund to
exchange a foreign currency for U.S. dollars on a specific date in the
future--and at a prearranged exchange rate.

NOTES TO SCHEDULE OF INVESTMENTS

ADR = American Depositary Receipt CHF = Swiss Franc ORD = Foreign Ordinary Share
(1) Non-income producing.

See Notes to Financial Statements

www.americancentury.com 9

Statement of Assets and Liabilities
- --------------------------------------------------------------------------------

JUNE 30, 1999 (UNAUDITED)

ASSETS
Investment securities, at value
(identified cost of $323,026,471) ............................ $ 446,872,943
Cash ......................................................... 1,409,197
Receivable for investments sold .............................. 8,311,431
Receivable for forward foreign currency exchange contracts ... 34,094
Dividends and interest receivable ............................ 172,921
-------------
456,800,586
-------------
LIABILITIES
Payable for investments purchased ............................ 1,790,439
Accrued management fees (Note 2) ............................. 365,657
Payable for directors' fees and expenses ..................... 737
-------------
2,156,833
-------------
Net Assets ................................................... $ 454,643,753
=============

CAPITAL SHARES, $0.01 PAR VALUE
Authorized ................................................... 200,000,000
=============
Outstanding .................................................. 43,421,858
=============

Net Asset Value Per Share .................................... $ 10.47

NET ASSETS CONSIST
OF:
Capital (par value and paid-in surplus) ...................... $ 337,772,912
Net investment loss .......................................... (850,212)
Accumulated net realized loss from investments and
foreign currency transactions ............................. (6,149,700)
Net unrealized appreciation on investments
and translation of assets and liabilities
in foreign currencies (Note 3) ............................ 123,870,753
-------------
$ 454,643,753
=============

See Notes to Financial Statements

10 1-800-345-6488

Statement of Operations
- --------------------------------------------------------------------------------

FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)

INVESTMENT LOSS

Income:
Dividends (Net of foreign taxes withheld of $38,332) .......... $ 1,076,604
Interest ...................................................... 256,766
------------
1,333,370
------------
Expenses (Note 2):
Management fees ............................................... 2,196,524
Directors' fees and expenses .................................. 2,415
------------
2,198,939
------------

Net investment loss ........................................... (865,569)
------------

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

Net realized gain on:
Investments ................................................... 34,329,758
Foreign currency transactions ................................. 559,624
------------
34,889,382
------------

Change in net unrealized appreciation on:
Investments ................................................... 31,611,604
Translation of assets and liabilities in foreign currencies ... 39,106
------------
31,650,710
------------
Net realized and unrealized gain on investments and
foreign currency ........................................... 66,540,092
------------

Net Increase in Net Assets Resulting from Operations .......... $ 65,674,523
============

See Notes to Financial Statements

www.americancentury.com 11

Statements of Changes in Net Assets
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED) AND YEAR ENDED DECEMBER 31, 1998

Increase (Decrease) in Net Assets 1999 1998

OPERATIONS
<S> <C> <C>
Net investment loss ....................................... $ (865,569) $ (334,600)
Net realized gain (loss) on investments and
foreign currency transactions .......................... 34,889,382 (41,109,709)
Change in net unrealized appreciation on investments and
translation of assets and liabilities
in foreign currencies .................................. 31,650,710 29,971,452
------------- -------------
Net increase (decrease) in net assets
resulting from operations .............................. 65,674,523 (11,472,857)
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net realized gains on investment transactions ........ -- (27,508,013)
------------- -------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ................................. 96,832,162 89,576,218
Proceeds from reinvestment of distributions ............... -- 27,508,013
Payments for shares redeemed .............................. (156,564,002) (223,100,347)
------------- -------------
Net decrease in net assets from capital
share transactions ..................................... (59,731,840) (106,016,116)
------------- -------------
Net increase (decrease) in net assets ..................... 5,942,683 (144,996,986)

NET ASSETS
Beginning of period ....................................... 448,701,070 593,698,056
------------- -------------
End of period ............................................. $ 454,643,753 $ 448,701,070
============= =============
Undistributed net investment income (loss) ................ $ (850,212) $ 15,357

TRANSACTIONS IN SHARES OF THE FUND
Sold ...................................................... 10,108,146 9,910,966
Issued in reinvestment of distributions ................... -- 2,859,461
Redeemed .................................................. (16,442,959) (24,365,539)
------------- -------------
Net decrease .............................................. (6,334,813) (11,595,112)
============= =============
</TABLE>

See Notes to Financial Statements

12 1-800-345-6488

Notes to Financial Statements
- --------------------------------------------------------------------------------

JUNE 30, 1999 (UNAUDITED)

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION -- American Century Variable Portfolios, Inc., (the
corporation) is registered under the Investment Company Act of 1940 as an
open-end diversified management investment company. VP Capital Appreciation Fund
(the fund) is one of the six 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 are in accordance with generally accepted
accounting principles; these principles may require the use of estimates by fund
management.

FOREIGN CURRENCY TRANSACTIONS -- All assets and liabilities initially
expressed in foreign currencies are translated into U.S. dollars at prevailing
exchange rates at period end. 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. For assets
and liabilities, other than investments in securities, net realized and
unrealized gains and losses from foreign currency translations arise from
changes in currency exchange rates.

Net realized and unrealized foreign currency exchange gains or losses
occurring during the holding period of investment securities are a component of
realized gain (loss) on investments and unrealized appreciation (depreciation)
on investments, respectively.

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- The fund may enter into
forward foreign currency exchange contracts to facilitate transactions of
securities denominated in a foreign currency or to hedge the fund's exposure to
foreign currency exchange rate fluctuations. 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. 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.

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.

At December 31, 1998, the fund had accumulated net realized capital loss
carryovers for federal income tax purposes of $40,132,653 (expiring in 2006)
which may be used to offset future taxable gains.

ADDITIONAL INFORMATION -- Funds Distributor, Inc. (FDI) is the corporation's
distributor. Certain officers of FDI are also officers of the corporation.

www.americancentury.com 13

Notes to Financial Statements
- --------------------------------------------------------------------------------
(Continued)

JUNE 30, 1999 (UNAUDITED)

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

The annualized fee schedule for the fund is as follows:

1.00% on the first $500 million
0.95% on the next $500 million
0.90% thereafter

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

Purchases and sales of investment securities, excluding short-term
investments, totaled $274,883,463 and $344,473,278, respectively.

As of June 30, 1999, accumulated net unrealized appreciation was
$122,940,023, based on the aggregate cost of investments for federal income tax
purposes of $323,932,920, which consisted of unrealized appreciation of
$125,641,015 and unrealized depreciation of $2,700,992.

- --------------------------------------------------------------------------------
4. BANK LOANS

- --------------------------------------------------------------------------------
5. FUND EVENTS

The following name change became effective March 1, 1999.

NEW NAME FORMER NAME
FUND: VP Capital Appreciation Fund American Century VP Capital Appreciation

14 1-800-345-6488

VP Capital Appreciation--Financial Highlights
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED DECEMBER 31 (EXCEPT AS NOTED)

1999(1) 1998 1997 1996 1995 1994
PER-SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ..$ 9.02 $ 9.68 $ 10.24 $ 12.06 $ 9.21 $ 9.32
------------ ------------ ---------- ------------ ------------- -----------

Income From Investment Operations
Net Investment Income (Loss) ........ (0.02) (0.01) (0.05)(2) (0.06)(2) (0.02) 0.01
Net Realized and Unrealized
Gain (Loss) on Investment
Transactions ...................... 1.47 (0.17) (0.30) (0.40) 2.88 (0.12)
------------ ------------ ---------- ------------ ------------- -----------

Total From Investment Operations .... 1.45 (0.18) (0.35) (0.46) 2.86 (0.11)
------------ ------------ ---------- ------------ ------------- -----------

Distributions
From Net Investment Income .......... -- -- -- -- (0.01) --
From Net Realized Gains on
Investment Transactions ............. -- (0.48) (0.21) (1.36) -- --
------------ ------------ ---------- ------------ ------------- -----------

Total Distributions ................. -- (0.48) (0.21) (1.36) (0.01) --
------------ ------------ ---------- ------------ ------------- -----------

Net Asset Value, End of Period ........$ 10.47 $ 9.02 $ 9.68 $ 10.24 $ 12.06 $ 9.21
============ ============ ========== ============ ============= ===========

Total Return(3) ..................... 16.08% (2.16)% (3.26)% (4.32)% 31.10% (1.17)%

RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses to
Average Net Assets .................... 1.00%(4) 1.00% 1.00% 1.00% 0.99% 1.00%
Ratio of Net Investment Income
(Loss) to Average Net Assets ........ (0.39)%(4) (0.07)% (0.53)% (0.59)% (0.23)% 0.11%
Portfolio Turnover Rate ............... 63% 206% 107% 182% 147% 115%
Net Assets, End of Period
(in thousands) ......................$ 454,644 $ 448,701 $ 593,698 $ 1,313,865 $ 1,461,124 $ 1,002,577
</TABLE>

(1) Six months ended June 30, 1999 (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.

See Notes to Financial Statements

www.americancentury.com 15

Background Information
- --------------------------------------------------------------------------------

PORTFOLIO MANAGERS
VP Capital Appreciation
HAROLD BRADLEY
LINDA PETERSON, CFA

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. Although the fund may purchase securities 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 leading 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.

The RUSSELL 2000 INDEX was created by the Frank Russell Company. It measures
the performance of the 2,000 smallest of the 3,000 largest publicly-traded U.S.
companies based on total market capitalization. The Russell 2000 represents
approximately 10% of the total market capitalization of the top 3,000 companies.
The average market capitalization of the index is approximately $420 million.

16 1-800-345-6488

Glossary
- --------------------------------------------------------------------------------

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.

INVESTMENT TERMS

* MEDIAN MARKET CAPITALIZATION-- Market capitalization (market cap) is the total
value of a company's stock and is calculated by multiplying the number of
outstanding common shares by the current share price. The company whose market
cap is in the middle of the portfolio is the median market cap. Half the
companies in the portfolio have values greater than the median, and half have
values that are less. If there is an even number of companies, then the median
is the average of the two companies in the middle.

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

* 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.)

TYPES OF STOCKS

* 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.

www.americancentury.com 17

Glossary
- --------------------------------------------------------------------------------
(continued)

FUND CLASSIFICATIONS

INVESTMENT OBJECTIVE

* CAPITAL PRESERVATION -- Offers taxable and tax-free money market funds for
relative stability of principal and liquidity.

* INCOME -- Offers funds that can provide current income and competitive yields,
as well as a strong and stable foundation and generally lower volatility levels
than stock funds.

* GROWTH & INCOME -- Offers funds that emphasize both growth and income,
diversification, varying capitalization sizes, and different investment styles
and strategies.

* GROWTH -- Offers funds with a focus on capital appreciation and long-term
growth, generally providing high return potential with corresponding high price
fluctuation risk.

RISK

* CONSERVATIVE -- these funds generally provide lower return potential with
either low or minimal price fluctuation risk.

* MODERATE -- these funds generally provide moderate return potential with
moderate price fluctuation risk.

* AGGRESSIVE -- these funds generally provide high return potential with
corresponding high price fluctuation risk.

18 1-800-345-6488

Notes
- --------------------------------------------------------------------------------

www.americancentury.com 19

Notes
- --------------------------------------------------------------------------------

20 1-800-345-3533

[inside back cover]

RISK LEVEL - CONSERVATIVE

- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE - INCOME
- --------------------------------------------------------------------------------

RISK LEVEL - AGGRESSIVE

TAXABLE BONDS TAX-FREE BONDS
Target 2025* CA High-Yield Municipal
Target 2020* High-Yield Municipal
Target 2015*
Target 2010*
High-Yield
International Bond

RISK LEVEL - MODERATE

TAXABLE BONDS TAX-FREE BONDS
Long-Term Treasury CA Long-Term Tax-Free
Target 2005* Long-Term Tax-Free
Bond CA Insured Tax-Free
Premium Bond

RISK LEVEL - CONSERVATIVE

RISK LEVEL - AGGRESSIVE

DOMESTIC EQUITY
Small Cap Quantitative
Small Cap Value

RISK LEVEL - MODERATE

- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE - GROWTH
- --------------------------------------------------------------------------------

RISK LEVEL - AGGRESSIVE

RISK LEVEL - MODERATE

SPECIALTY
Global Natural Resources

The investment objective may be based on the fund's objective as stated in its
prospectus or fund profile, or the fund's categorization by independent rating
organizations based on its management style.

The classification of funds by risk category is based on quantitative historical
measures as well as qualitative prospective measures. It is not intended to be a
precise indicator of future risk or return levels. The degree of risk within
each category can vary significantly, and some fund returns have historically
been higher than more aggressive funds or lower than more conservative funds.
Please be aware that a fund's category may change over time. Therefore, it is
important that you read a fund's prospectus or fund profile carefully before
investing to ensure its objectives, policies and risk potential are consistent
with your needs.

For a definition of fund categories, see the Glossary.

[back cover]

[american century logo(reg.sm)]
American
Century

P.O. BOX 419385
KANSAS CITY, MISSOURI 64141-6385

www.americancentury.com

INVESTOR RELATIONS
1-800-345-6488

AUTOMATED INFORMATION LINE
1-800-345-8765

FAX:
816-340-4360

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-345-1833

AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.

INVESTMENT MANAGER
American Century Investment Management, Inc.
Kansas City, Missouri

This report and the statements it contains 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 Investments BULK RATE
P.O. Box 41385 U.S. POSTAGE PAID
Kansas City, MO 64141-6385 AMERICAN CENTURY
www.americancentury.com COMPANIES

9908 Funds Distributor, Inc.
SH-SAN-17188 (c)1999 American Century Services Corporation
<PAGE>
[front cover]

JUNE 30, 1999

SEMIANNUAL REPORT
- -----------------
AMERICAN CENTURY
VARIABLE PORTFOLIOS

[graphic of stairs]

VP INTERNATIONAL

[american century logo(reg.sm)]
American
Century

[inside front cover]

[left margin]

VARIABLE PORTFOLIOS

VP INTERNATIONAL
- -------------------

Our Message to You

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

James E. Stowers III, seated, with James E. Stowers, Jr.

The first half of 1999 was a rewarding period for international investors.
In Europe, as in the United States, investors shied away from the high-priced
growth stocks that led the market in recent years and directed their money into
value-oriented and cyclical stocks. We also began to see signs of recovery in
many parts of the world, and money began to flow back into those regions.

Against this backdrop, VP International turned in strong results, helped by
investments in telecommunications stocks in many countries outside of the United
States. As a result, the fund nearly doubled the return of its benchmark.

In the spirit of our ongoing Year 2000 readiness disclosures,* here's an
update on our preparations for Y2K. Our senior-level Year 2000 Steering
Committee, computer programmers, business partners and Y2K team have been
working diligently to make January 1, 2000, a non-event for American Century
investors. Currently, all of our computer systems have been modified, tested and
returned to production. We have an ongoing commitment to testing our systems
with our vendors and business partners and within the industry throughout the
rest of the year.

As always, we appreciate your continued confidence in American Century.

Sincerely,

/s/James E. Stowers, Jr.
James E. Stowers, Jr.
Chairman of the Board and Founder

/s/James E. Stowers III
James E. Stowers III
Vice Chairman of the Board and Chief Executive Officer

*This letter includes a Year 2000 Readiness Disclosure.

[right margin]

Table of Contents

Report Highlights ........................................................ 2
Market Perspective ....................................................... 3

VP INTERNATIONAL
Performance Information .................................................. 4
Management Q&A ........................................................... 5
Portfolio at a Glance .................................................... 5
Top Ten Holdings ......................................................... 6
Top Five Industries ...................................................... 6
Types of Investments ..................................................... 7
Investments by Country ................................................... 7
Schedule of Investments .................................................. 8
Financial Highlights ..................................................... 17

FINANCIAL STATEMENTS
Statement of Assets and
Liabilities ............................................................ 12
Statement of Operations .................................................. 13
Statements of Changes
in Net Assets .......................................................... 14
Notes to Financial
Statements ............................................................. 15

OTHER INFORMATION
Background Information
Portfolio Managers .................................................... 18
Investment Philosophy
and Policies ........................................................ 18
How Currency Returns Affect
Fund Performance .................................................... 18
Comparative Indices ................................................... 18
Glossary ................................................................. 19

www.americancentury.com 1

Report Highlights

MARKET PERSPECTIVE

* The first half of 1999 saw a dramatic exodus of investment assets out of
Europe. Money flowed into Japan and the re-emerging markets of Southeast Asia
and Latin America.

* Europe's new currency, the euro, faltered when EMU economies showed signs of
slowing. Europe's interest rates also declined, further undermining the euro,
which had to compete with rising rates in the United States, where the
economy continued to boom.

* Singapore and South Korea both strengthened, helped by lower interest rates,
and Japan also demonstrated signs of recovery. In Latin America, Mexico
surged, helped along by rising oil prices and the strong influence of the
resilient U.S. economy. Brazilian financial markets also rebounded sharply
after the government devalued the real and lowered interest rates.

VP INTERNATIONAL

* VP International posted a healthy 7.35% return, outperforming its benchmark,
the Morgan Stanley Capital International EAFE Index, which gained 3.97%.

* VP International's top contributors were technology-related companies,
including telecommunications firms and cellular and communications equipment
providers.

* The fund's three worst performing sectors were banks, pharmaceutical firms,
and food and beverage companies. Problems in each area were more
stock-specific than the result of some general theme within the industry.

* During the period, the fund assumed a greater stake in Asian holdings,
particularly Singapore, Hong Kong, and Japan.

[left margin]

VP INTERNATIONAL

TOTAL RETURNS: AS OF 6/30/99
6 Months 7.35%*
1 Year 1.74%
INCEPTION DATE: 5/1/94
NET ASSETS: $487.2 million

* Not annualized.

Investment terms are defined in the Glossary on pages 19 - 20.

2 1-800-345-6488

Market Perspective from Henrik Strabo

[photo of Henrik Strabo]

Henrik Strabo, Chief Investment Officer of international investments at
American Century

ASSETS EXIT EUROPE

The most significant dynamic affecting international markets for the six
months ended June 30, 1999, was the dramatic exodus of investment assets out of
Europe and into Japan and the re-emerging markets of Southeast Asia and Latin
America. Perhaps the most important cause of this rapid migration was the
less-than-successful launch of the euro, the new currency of the European
Monetary Union (EMU). Introduced in January, the euro faltered when EMU
economies showed signs of slowing. Germany, which accounts for one-third of EMU
output, is currently growing at less than 2% annually, and, with the exception
of Italy, is the Union's least impressive growth story. European interest rates
also declined, further undermining the euro, which had to compete with rising
rates in the United States, where the economic boom continued virtually
unabated. Finally, concerns about rising global inflation led to a flight from
growth stocks to economically sensitive cyclical and commodity stocks--and to
the recovering markets of emerging Asia and Latin America.

REGIONS ON THE MEND

Inflation concerns and the subsequent shift from growth stocks were largely
driven by the turnaround in Asia and Latin America. As these economies bottomed
out, investors feared that their revival would stimulate increased global demand
for commodities and infrastructure--resulting in higher prices. The initial
beneficiaries of economic rebounds are usually the commodity producers and heavy
industrials, traditional value stocks.

In Asia, South Korea and Singapore both strengthened, helped by lower
interest rates. South Korean businesses rebounded via export-led growth, a lower
overall cost structure and a reduction of heavy debt burdens. In the more
developed economy of Singapore, which did not suffer from many of the financial
excesses of its neighbors, export growth, namely in electronics, was robust.

Even Japan, after years of economic stagnation, was on the mend. Foreigners
recognized the Japanese recovery early in the year. Foreign purchases of
Japanese shares hit record volumes during the first calendar quarter of 1999.

In Latin America, Mexico surged, helped along by rising oil prices, lower
interest rates, and the strong influence of the resilient U.S. economy.
Brazilian financial markets also rebounded sharply after the government devalued
the real. Brazil drastically reduced interest rates, and stepped back from the
brink of financial collapse to an equilibrium that the equity markets are
rewarding.

A HEALTHY GLOBAL ECONOMY

The resurgent global economy gives investors many more opportunities from
which to choose. Temporary setbacks aside, many constructive trends are in
place, especially in Europe, where corporate restructurings continue at a
phenomenal pace. In the long run, the euro should act as a catalyst for Europe's
burgeoning American-style equity culture and encourage the growth of the
Continent's capital markets.

[right margin]

"THE RESURGENT GLOBAL ECONOMY GIVES INVESTORS MANY MORE OPPORTUNITIES FROM
WHICH TO CHOOSE."

MARKET RETURNS
FOR THE SIX MONTHS ENDED JUNE 30, 1999

MSCI EUROPE -2.41%

MSCI FAR EAST 22.79%

S&P 500 12.23%

Source: Lipper Inc.

MARKET PERFORMANCE (GROWTH OF $1.00)
FOR THE SIX MONTHS ENDED JUNE 30, 1999

[chart data shown below]
S&P 500 MSCI Europe MSCI Far East
Index Index Index
12/31/98 1.00 1.00 1.00
1/31/99 1.04 0.99 1.00
2/28/99 1.01 0.97 0.98
3/31/99 1.05 0.98 1.12
4/30/99 1.09 1.01 1.19
5/31/99 1.06 0.96 1.12
6/30/99 1.12 0.98 1.23

Value on 6/30/99

S&P 500 Index $1.12 MSCI Europe Index $0.98 MSCI Far East Index $1.23

www.americancentury.com 3

VP International--Performance

TOTAL RETURNS AS OF JUNE 30, 1999

VP MSCI EAFE(reg.tm) S&P 500
INTERNATIONAL INDEX
6 MONTHS(1) 7.35% 3.97% 12.23%
1 YEAR 1.74% 7.62% 22.75%

AVERAGE ANNUAL RETURNS

3 YEARS 17.23% 8.81% 29.00%
5 YEARS 13.53% 8.21% 27.81%
LIFE OF FUND(2) 12.59% 8.10% 26.54%

(1) Returns for periods less than one year are not annualized.

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

See pages 18 -19 for information about the indices and returns.

GROWTH OF $10,000 OVER LIFE OF FUND

[chart data shown below]

$10,000 investment made 5/1/94

VP Intn'l MSCI EAFE S&P 500
5/01/1994 $10,000 $10,000 $10,000
6/30/1994 9,780 10,083 9,915
9/30/1994 10,100 10,093 10,400
12/31/1994 9,500 9,990 10,398
3/31/1995 9,299 10,176 11,411
6/30/1995 9,880 10,250 12,500
9/30/1995 10,360 10,678 13,494
12/31/1995 10,660 11,110 14,306
3/31/1996 10,920 11,431 15,075
6/30/1996 11,439 11,612 15,751
9/30/1996 11,521 11,597 16,238
12/31/1996 12,197 11,781 17,591
3/31/1997 12,841 11,596 18,062
6/30/1997 14,491 13,101 21,218
9/30/1997 15,020 13,010 22,805
12/31/1997 14,470 11,991 23,459
3/31/1998 17,048 13,755 26,732
6/30/1998 18,131 13,901 27,614
9/30/1998 14,817 11,925 24,866
12/31/1998 17,184 14,389 30,163
3/31/1999 17,454 14,589 31,668
6/30/1999 18,445 14,960 33,704

Value on 6/30/99

S&P 500 $33,704
VP International $18,445
MSCI EAFE $14,960

The graph at left shows the growth of a $10,000 investment over the life of the
fund, while the chart below shows the fund's year-by-year performance. The MSCI
EAFE(reg.tm) Index and the S&P 500 are provided for comparison. VP
International's total returns include operating expenses (such as transaction
costs and management fees) that reduce returns, while the total returns of the
indices do not. 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.

ONE-YEAR RETURNS OVER LIFE OF FUND (PERIODS ENDING JUNE 30)

[chart data shown below]

VP International MSCI EAFE Index
6/30/1994* -2.20% 0.83%
6/30/1995 1.02% 1.66%
6/30/1996 15.77% 13.28%
6/30/1997 26.67% 12.84%
6/30/1998 25.12% 6.10%
6/30/1999 1.74% 7.62%

*From May 1, 1994 to June 30, 1994.

4 1-800-345-6488

VP International--Q&A

[photo of Mark Kopinski and Henrik Strabo]

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

HOW DID VP INTERNATIONAL PERFORM DURING THE FIRST HALF OF ITS FISCAL YEAR?

VP International posted a healthy 7.35% return for the six months ended
June 30, 1999. It outperformed its benchmark, the Morgan Stanley Capital
International EAFE Index (EAFE), which gained 3.97%.

WHAT FACTORS INFLUENCED VP INTERNATIONAL'S PERFORMANCE DURING THE PERIOD?

Perhaps the dominant factor was the reallocation of investment assets away
from Europe and into Asia and Latin America. In addition, in both Europe and the
United States, investors shifted away from the high-priced growth stocks that
have been in favor for the last few years and put money in value-oriented stocks
and cyclicals. This market rotation was particularly pronounced on the
Continent. Although much of Europe showed excellent promise throughout most of
last year, growth tapered off significantly in early 1999, forcing us to look
elsewhere for successful companies.

In Japan, large companies demonstrated some early signs of recovery during
the first quarter of 1999. The restructuring bug seemed to bite many firms and
there were flurries of announcements. We remained cautious, treating many of
these announcements with a healthy dose of skepticism. We did find a few growth
and restructuring strategies that were credible, but on the whole VP
International entered the period underweighted in Japan relative to the EAFE
index, and was unable to benefit fully from the economic progress in Japan. In
Japan and elsewhere, we are conducting fundamental research on a
company-by-company basis and will only add firms to the portfolio that we
believe are positioned for significant future growth.

WHICH INDUSTRIES OR STOCKS CONTRIBUTED THE MOST TO RETURNS?

Almost without exception, VP International's top contributors were
technology-related companies, including telecommunications firms and cellular
and communications equipment providers. Representing more than 16% of
investments at the end of the period, telecommunications companies comprised VP
International's largest sector weighting. As the major broadband carriers of
electronic data, telecommunication companies have benefited enormously from
increasing Internet and data traffic. In the United Kingdom, telecommunications
giant Colt Telecom Group, one of the largest competitive local exchange network
carriers in Europe, was among the fund's best-performing stocks. Colt transports
data for many financial service firms and recently underwent an aggressive
expansion that resulted in greatly increased market share. Six months ago, Colt
was operating in six competitive local exchange networks in three European
countries; it now operates in 13 networks in eight European countries.

[right margin]

"ALMOST WITHOUT EXCEPTION, VP INTERNATIONAL'S TOP CONTRIBUTORS WERE
TECHNOLOGY-RELATED COMPANIES, INCLUDING TELECOMMUNICATIONS FIRMS AND CELLULAR
AND COMMUNICATIONS EQUIPMENT PROVIDERS."

PORTFOLIO AT A GLANCE
6/30/99 12/31/98
NO. OF COMPANIES 154 146
MEDIAN MARKET $10.8 $7.26
CAPITALIZATION BILLION BILLION
PORTFOLIO TURNOVER 57%(1) 181%(2)

(1) Six months ended 6/30/99.
(2) Year ended 12/31/98.

Investment terms are defined in the Glossary on pages 19 - 20.

www.americancentury.com 5

VP International--Q&A
(Continued)

Mannesmann AG, VP International's largest holding, benefited from growth in
the cellular telecommunications arena. Mannesmann is a German engineering firm
that rebuilt itself into a telecommunications powerhouse, offering both cellular
and data services. The company, known mostly for its cellular service network in
Germany, continues to expand its pan-European reach, either through acquisition
or by establishing strategic alliances. It has also aggressively grown its
electronic commerce services and high-speed data communications business.

A top holding outside of the technology sector was Hennes & Mauritz, a
successful clothing retailer in Europe that is very similar to The Gap in the
United States. Despite the fact that some believe its valuation is too
expensive, the company has a phenomenal track record, continues to grow steadily
and aggressively, and consistently beats earnings estimates. The holding has
contributed significantly to returns and we have increased our position as
earnings continued to rise.

WHICH SECTORS OR HOLDINGS WERE DISAPPOINTING?

VP International's three worst performing sectors were banks,
pharmaceutical firms, and food and beverage companies. Problems in these areas
were generally more stock- or company-specific than the result of some general
theme within the industry.

At the beginning of the period, pharmaceutical companies represented just
over 5% of investments. Novartis has been one of VP International's largest
holdings for quite some time, but we cut our weighting as its earnings began to
decelerate. Another significant foods/pharmaceutical holding, Nestle, also
dampened returns due to sluggish growth in its main European markets.

Disappointments within the banking and financial services sector included
Julius Baer Holding, Axa, and Newcourt Credit Group, all of which were among the
fund's best performing holdings in the previous period. While earnings growth is
still on track, the shares of both Baer and Axa have underperformed because
valuations became too expensive. Newcourt struggled for different reasons.
Newcourt is a Toronto-based business lender that originates, manages and sells
asset-based loans. The company was preparing to be acquired by CIT Group in a
proposed $4 billion takeover. However, Newcourt's unexpectedly poor
first-quarter earnings raised the possibility that the merger might not be
completed, which took the stock down.

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

In terms of geographical changes, we increased holdings in Asia --
particularly Singapore and Hong Kong, where earnings growth has accelerated and
we believe the potential for further growth is strong. We also added to our
Japanese holdings, which increased from 9% of investments at the beginning of
the period to 17% at June 30. That greater stake reflected our interest
primarily in two positions, Sony and Fujitsu, both of which demonstrated a firm
commitment to restructuring their business. In our view, however, the Japanese
economy continues to be propped up by government spending programs and remains
fundamentally weak. Thus, as usual, any increase in our Japanese exposure will
be company-specific

[left margin]

TOP TEN HOLDINGS
% OF FUND INVESTMENTS
AS OF AS OF
6/30/99 12/31/98
MANNESMANN AG 2.9% 2.2%
VIVENDI 2.2% 2.3%
SONY CORP. 1.7% 0.5%
TELEFONICA S.A.(1) 1.6% 1.2%
ABB LTD. 1.5% --
BRITISH TELECOMMUNICATIONS PLC 1.4% 1.0%
NOKIA CORP. CI A ADR 1.4% 1.6%
HENNES & MAURITZ AB CI B 1.4% 1.4%
KAO CORPORATION 1.4% 1.2%
FUJITSU LTD. 1.4% 0.8%

(1) Formerly known as Telefonica de Espana.

TOP FIVE INDUSTRIES

% OF FUND INVESTMENTS
AS OF AS OF
6/30/99 12/31/98
TELEPHONE COMMUNICATIONS 14.0% 13.7%
BANKING 8.3% 5.9%
DIVERSIFIED COMPANIES 6.8% 4.5%
ELECTRICAL & ELECTRONIC
COMPONENTS 6.7% 2.3%
FINANCIAL SERVICES 6.5% 9.6%

6 1-800-345-6488

VP International--Q&A
(Continued)

opportunities. Elsewhere, we built a small position in Mexico. Mexico is a heavy
petroleum exporter, and its economy has been helped along by the shift in oil
prices and also by the resolution of problems within the country's banking
infrastructure. We trimmed holdings a bit in Italy, Germany, Switzerland, and
France.

While our largest industry shift was in pharmaceuticals, we also shaved our
stake in food and beverage companies as earnings tapered off in recent months,
and in computer software firms, which have has also suffered a general slowdown
ahead of the Year 2000. Telecommunications companies now represent VP
International's largest sector weighting at 16.5% of investments. The fund also
has significant positions in banks and financial services companies.

WHAT IS YOUR OUTLOOK FOR INTERNATIONAL INVESTING IN THE SECOND HALF OF THE YEAR?

We are bullish about the long-term opportunities we're seeing in many
foreign markets. We continue to find growth in Europe, and signs of recovery in
Asia are encouraging. Since we believe we're in the very early stages of an
Asian rebound, we're adding investments there very selectively. In Japan, we've
seen glimpses of a turnaround, but we need more assurance that growth can be
sustained. Japan must continue to move forward and show significant progress in
restructuring in order not to impede recovery in the rest of Asia. In any event,
we believe our bottom-up approach and earnings-growth focus will continue to
lead us toward companies around the globe with good long-term potential.

[right margin]

TYPES OF INVESTMENTS IN THE PORTFOLIO

AS OF JUNE 30, 1999

[pie chart data shown below]

Common Stocks & Rights 95%
Temporary Cash Investments 4%
Preferred Stocks 1%

AS OF DECEMBER 31, 1998

[pie chart data shown below]

Common Stocks & Rights 92%
Temporary Cash Investments 7%
Preferred Stocks 1%

VP INTERNATIONAL'S INVESTMENTS BY COUNTRY

[chart data shown below]

6/30/99 12/31/98
Japan 17% 9%
United Kingdom 16% 18%
France 11% 13%
Netherlands 7% 8%
Germany 6% 9%
Switzerland 5% 8%
Canada 4% 3%
Italy 4% 6%
Other 30% 26%

www.americancentury.com 7

VP International--Schedule of Investments

NOTE: For securities denominated in foreign currencies, the market value is
translated into U.S. dollars based on exchange rates as of the last day of
reporting period.

JUNE 30, 1999 (UNAUDITED)

Shares Value
- ------------------------------------------------------------------------------
COMMON STOCKS -- 95.2%

AUSTRALIA -- 2.1%
219,000 Australia & New Zealand Banking Group Ltd. $ 1,607,520
(banking)
87,000 Brambles Industries Limited 2,287,913
(diversified companies)
275,000 Broken Hill Proprietary Co. Ltd. 3,179,859
(metals & mining)
954,350 Cable & Wireless Optus Limited(1) 2,169,218
(telephone communications)
159,000 Woodside Petroleum Limited 1,074,756
(energy -- production & marketing) --------------
10,319,266
--------------
BELGIUM -- 0.8%
67,000 Fortis AG 2,102,069
(insurance)
42,700 UCB SA 1,825,832
(pharmaceuticals) --------------
3,927,901
--------------
BRAZIL -- 0.5%
103,000 Telesp Participacoes S.A. ADR 2,356,125
(telephone communications) --------------

CANADA -- 3.9%
149,000 Bombardier Inc. Cl B 2,275,658
(aerospace & defense)
33,300 Canadian National Railway Company 2,235,521
(railroad)
32,000 JDS Fitel Inc.(1) 2,682,596
(communications equipment)
56,000 Nortel Networks Corp. 4,861,500
(communications equipment)
156,000 Rogers Communications, Inc. Cl B(1) 2,504,344
(broadcasting & media)
49,000 Seagram Co. Ltd. (The) 2,468,375
(food & beverage)
35,000 Teleglobe Inc. 1,034,652
(telephone communications)
27,000 Toronto-Dominion Bank (The) 1,223,357
(banking) --------------
19,286,003
--------------
DENMARK -- 0.4%
44,000 Tele Danmark A/S 2,158,237
(telephone communications) --------------

Shares Value
- ------------------------------------------------------------------------------
FINLAND -- 1.7%
77,400 Nokia Corp. Cl A ADR $ 7,086,938
(communications equipment)
60,819 Sonera Group Oyj 1,328,495
(wireless communications) --------------
8,415,433
--------------
FRANCE -- 11.4%
8,000 Accor SA 2,007,122
(leisure)
10,431 Altran Technologies SA 2,751,381
(business services & supplies)
45,000 Axa 5,485,068
(insurance)
25,437 Cap Gemini SA 3,994,254
(computer software & services)
24,000 Carrefour SA 3,523,797
(retail -- general merchandise)
24,000 Compagnie Francaise d'Etudes
et de Construction Technip 2,690,450
(chemicals & resins)
27,000 Elf Aquitaine SA 3,958,708
(energy -- production & marketing)
42,600 Equant NV New York Shares(1) 4,009,725
(telephone communications)
14,000 Groupe Danone 3,606,225
(food & beverage)
25,000 Pinault-Printemps-Redoute SA 4,286,256
(retail -- general merchandise)
10,919 Sidel SA 1,326,421
(machinery & equipment)
27,000 Societe Generale Cl A 4,754,344
(banking)
12,900 Societe Television Francaise 1 3,003,882
(broadcasting & media)
131,545 Vivendi 10,646,462
(diversified companies) --------------
56,044,095
--------------
GERMANY -- 5.7%
5,005 Allianz AG 1,393,653
(insurance)
30,698 DaimlerChrysler AG 2,669,545
(automobiles & auto parts)
52,500 DePfa Deutsche Pfandbriefbank AG 4,760,217
(banking)
32,700 Douglas Holding AG 1,475,729
(retail -- general merchandise)
93,780 Mannesmann AG 14,078,441
(industrial equipment & machinery)
48,000 Siemens AG 3,708,765
(diversified companies) --------------
28,086,350
--------------

See Notes to Financial Statements

8 1-800-345-6488

VP International--Schedule of Investments
(Continued)

JUNE 30, 1999 (UNAUDITED)

Shares Value
- ------------------------------------------------------------------------------
HONG KONG -- 3.1%

275,000 Cheung Kong (Holdings) Ltd. $ 2,445,642
(real estate)
1,228,000 China Telecom (Hong Kong) Ltd.(1) 3,410,803
(wireless communications)
385,000 Henderson Land Development Company Ltd. 2,213,128
(real estate)
34,000 HSBC Holdings plc 1,240,156
(banking)
345,000 Swire Pacific Ltd. Cl A 1,707,503
(diversified companies)
33,000 Tommy Hilfiger Corp.(1) 2,425,500
(textiles & apparel)
586,485 Wharf (Holdings) Ltd. 1,829,293
(diversified companies) --------------
15,272,025
--------------
INDONESIA -- 0.3%
2,839,320 PT Telekomunikasi Indonesia 1,657,997
(telephone communications) --------------

IRELAND -- 0.9%
137,000 Bank of Ireland 2,301,987
(banking)
104,000 CRH plc 1,838,475
(construction & property development) --------------
4,140,462
--------------
ITALY -- 3.9%
86,100 Assicurazioni Generali 2,980,761
(insurance)
272,445 Banca Intesa S.p.A. 1,308,126
(financial services)
183,000 Mediaset SpA 1,625,336
(broadcasting & media)
397,000 Mediolanum SpA 3,047,415
(insurance)
235,600 Mondadori (Arnoldo) Editore SpA 4,078,208
(printing & publishing)
1,031,859 Seat Pagine Gialle SpA 1,408,708
(printing & publishing)
449,800 Telecom Italia SpA(1) 4,671,590
(telephone communications) --------------
19,120,144
--------------
JAPAN -- 17.0%
105,000 Eisai Company, Ltd. 2,068,175
(pharmaceuticals)
529,000 Fuji Heavy Industries Ltd. 4,080,489
(automobiles & auto parts)
334,000 Fujitsu Ltd. 6,716,687
(electrical & electronic components)
132 Japan Telecom Co. Ltd. 1,875,046
(telephone communications)
243,000 Kao Corporation 6,823,306
(consumer products)
26,000 KDD Corp. 1,865,962
(telephone communications)
227,000 Kirin Brewery Company, Ltd. 2,718,338
(food & beverage)

Shares Value
- ------------------------------------------------------------------------------
550,000 Mitsukoshi, Ltd.(1) $ 2,389,231
(retail -- general merchandise)
22,000 Murata Manufacturing Co., Ltd. 1,446,257
(electrical & electronic components)
530 Nippon Telegraph & Telephone 6,171,698
(telephone communications)
168,000 Nomura Securities Co., Ltd. 1,966,024
(financial services)
180 NTT Data Corp. 1,430,070
(business services & supplies)
70 NTT Mobile Communications Network, Inc. 948,094
(wireless communications)
280 NTT Mobile Communications Network, Inc.(1) 3,746,129
(wireless communications)
143,000 Ricoh Company, Ltd. 1,967,527
(office equipment & supplies)
5,200 Ryohin Keikaku Co. Limited 1,307,676
(retail -- general merchandise)
346,000 Shiseido Co., Ltd. 5,183,499
(consumer products)
3,500 Shohkoh Fund & Co., Ltd. 2,508,981
(financial services)
6,000 Softbank Corp. 1,214,519
(diversified companies)
79,000 Sony Corp. 8,514,267
(electrical & electronic components)
244,000 Sumitomo Bank, Ltd. (The) 3,024,685
(banking)
79,000 Takeda Chemical Inds. 3,660,156
(pharmaceuticals)
92,000 Tokyo Electron Ltd. 6,237,932
(electrical & electronic components)
77,000 Toppan Forms Co., Ltd. 1,462,609
(printing & publishing)
128,000 Toyota Motor Corp. 4,048,726
(automobiles & auto parts) --------------
83,376,083
--------------
MEXICO -- 2.4%
260,000 Cemex SA de CV Cl B 1,290,192
(building & home improvements)
3,700,000 Grupo Financiero Bancomer, S.A. de C.V. Cl O 1,336,734
(financial services)
87,000 Grupo Televisa S.A. GDR(1) 3,898,688
(broadcasting & media)
63,000 Telefonos de Mexico, S.A. Cl L ADR 5,091,188
(telephone communications) --------------
11,616,802
--------------
NETHERLANDS -- 6.9%
42,500 ASR Verzekeringsgroep N.V. 2,800,363
(insurance)
41,000 Getronics N.V. 1,575,714
(computer software & services)
37,000 Gucci Group N.V. New York Shares 2,590,000
(retail -- apparel)
59,000 Heineken NV 3,018,256
(food & beverage)

See Notes to Financial Statements

www.americancentury.com 9

VP International--Schedule of Investments
(Continued)

JUNE 30, 1999 (UNAUDITED)

Shares Value
- ------------------------------------------------------------------------------
90,196 ING Groep N.V. $ 4,879,006
(financial services)
80,580 Koninklijke Ahold NV 2,773,055
(retail -- food & drug)
47,520 Phillips Electronics N.V. New York Shares 4,793,580
(electrical & electronic components)
31,250 Unilever N.V. New York Shares 2,179,688
(diversified companies)
43,000 United Pan-Europe Communications NV 2,330,446
(broadcasting & media)
82,700 VNU N.V. 3,301,885
(printing & publishing)
96,672 Wolters Kluwer NV 3,844,791
(printing & publishing) --------------
34,086,784
--------------
PHILIPPINES -- 0.4%
814,200 San Miguel Corporation Cl B 1,776,047
(food & beverage) --------------

SINGAPORE -- 2.6%
349,000 City Developments Limited 2,234,420
(real estate)
583,000 DBS Land Limited 1,164,288
(real estate)
99,000 Development Bank of Singapore Ltd. 1,209,515
(banking)
183,410 Singapore Press Holdings Ltd. 3,124,164
(printing & publishing)
2,271,000 Singapore Technologies Engineering Ltd. 2,574,467
(business services & supplies)
217,900 United Overseas Bank Ltd. 1,523,060
(banking)
123,000 Venture Manufacturing (Singapore) Ltd. 946,432
(electrical & electronic components) --------------
12,776,346
--------------
SOUTH KOREA -- 2.3%
55,000 Korea Electric Power Corp. 2,285,529
(utilities)
52,740 Korea Telecom Corporation 3,499,293
(telephone communications)
57,000 Samsung Corporation(1) 1,339,438
(electrical & electronic components)
28,750 Samsung Electronics 3,154,428
(electrical & electronic components)
53,100 Shinhan Bank GDR(1) 1,184,130
(banking)
1,905 SK Telecom Co. Ltd. ADR 32,385
(wireless communications) --------------
11,495,203
--------------
SPAIN -- 2.3%
138,000 Argentaria SA 3,140,940
(banking)
165,566 Telefonica S.A.(1) 7,968,302
(telephone communications) --------------
11,109,242
--------------

Shares Value
- ------------------------------------------------------------------------------
SWEDEN -- 3.0%
185,000 Europolitan Holdings AB $ 1,830,443
(wireless communications)
276,000 Hennes & Mauritz AB Cl B 6,827,056
(retail -- apparel)
336,400 Skandia Forsakrings AB 6,300,256
(financial services) --------------
14,957,755
--------------
SWITZERLAND -- 5.4%
77,808 ABB Ltd. 7,331,172
(diversified companies)
9,700 Credit Suisse Group 1,678,168
(financial services)
1,040 Holderbank Financiere Glarus AG Cl B 1,227,385
(building & home improvements)
1,492 Julius Baer Holding AG 4,250,931
(financial services)
2,000 Nestle S.A. 3,602,920
(food & beverage)
2,326 Novartis AG 3,395,839
(pharmaceuticals)
4,745 Swisscom AG 1,785,269
(telephone communications)
11,000 UBS AG 3,282,632
(banking) --------------
26,554,316
--------------
UNITED KINGDOM -- 16.2%
525,000 Amvescap Plc 4,671,414
(financial services)
69,000 AstraZeneca Group plc 2,669,001
(pharmaceuticals)
102,700 Barclays PLC 2,988,321
(banking)
335,500 BBA Group plc 2,570,123
(diversified companies)
423,378 British Telecommunications plc 7,093,926
(telephone communications)
284,000 Cable & Wireless Communications plc(1) 2,730,696
(telephone communications)
171,000 Capita Group Plc 1,769,522
(business services & supplies)
207,662 COLT Telecom Group plc(1) 4,356,725
(telephone communications)
122,000 Diageo plc 1,274,004
(food & beverage)
126,595 Dixons Group plc 2,364,613
(retail -- specialty)
91,378 Energis plc(1) 2,179,243
(telephone communications)
75,000 Glaxo Wellcome plc 2,084,197
(pharmaceuticals)
177,200 Imperial Tobacco Group plc 1,932,836
(tobacco)
758,000 Invensys plc 3,587,379
(industrial)
156,900 Lloyds TSB Group plc 2,126,897
(financial services)

See Notes to Financial Statements

10 1-800-345-2021

VP International--Schedule of Investments
(Continued)

JUNE 30, 1999 (UNAUDITED)

Shares Value
- ------------------------------------------------------------------------------
155,885 Logica plc $ 1,633,996
(computer software & services)
123,000 National Westminster Bank PLC 2,607,669
(banking)
159,000 Next Plc 1,931,056
(retail -- general merchandise)
129,200 Orange plc(1) 1,893,959
(wireless communications)
186,000 Pearson plc 3,779,122
(printing & publishing)
70,073 Provident Financial plc 973,639
(financial services)
365,000 Standard Chartered plc 5,960,432
(banking)
917,000 TeleWest Communications plc(1) 4,112,223
(broadcasting & media)
292,000 Vodafone Group plc 5,753,312
(wireless communications)
18,500 Vodafone Group plc ADR 3,644,500
(wireless communications)
375,000 WPP Group plc 3,171,218
(business services & supplies) --------------
79,860,023
--------------
UNITED STATES -- 2.0%
66,000 Amdocs Ltd.(1) 1,501,500
(computer software & services)
24,000 Comverse Technology, Inc.(1) 1,810,500
(communications equipment)
59,100 Global TeleSystems Group, Inc.(1) 4,785,253
(telephone communications)
25,000 Schlumberger Ltd. 1,592,188
(energy -- services) --------------
9,689,441
--------------
TOTAL COMMON STOCKS 468,082,080
(Cost $366,629,632) --------------

PREFERRED STOCKS -- 1.2%

BRAZIL -- 1.2%
93,610,000 Centrais Electricas Brasileiras S.A. Cl B 1,890,202
(utilities)
87,500,000 Embratel Participacoes S.A. 1,226,881
(telephone communications)
17,240,000 Petroleo Brasileiro S.A. 2,662,059
(energy -- production & marketing) --------------

TOTAL PREFERRED STOCKS 5,779,142
(Cost $6,375,052) --------------

Value
- ------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 3.6%

Repurchase Agreement, Morgan Stanley Group,
Inc., (U.S. Treasury obligations), in a joint trading
account at 4.72%, dated 6/30/99, due
7/1/99 (Delivery value $17,902,347) $ 17,900,000
(Cost $17,900,000) --------------

TOTAL INVESTMENT SECURITIES -- 100.0% $491,761,222
(Cost $390,904,684) ==============

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS

Contracts Settlement Unrealized
to Sell Date Value Gain

2,083,487 CHF 7/30/99 $ 1,344,366 $ 12,291
15,305,707 EURO 7/30/99 15,803,311 125,209
5,392,787 GBP 7/30/99 8,501,788 34,994
1,816,603,600 JPY 7/30/99 15,064,547 2,984
6,232,120 SEK 7/30/99 735,337 5,912
--------------------------
$41,449,349 $181,390
==========================
(Value on Settlement Date $41,630,739)

NOTES TO SCHEDULE OF INVESTMENTS

ADR = American Depositary Receipt GDR = Global Depositary Receipt
CHF = Swiss Franc JPY = Japanese Yen
GBP = British Pound SEK = Swedish Krona

(1) Non-income producing.

See Notes to Financial Statements

www.americancentury.com 11

Statement of Assets and Liabilities

JUNE 30, 1999 (UNAUDITED)

ASSETS

Investment securities, at value
(identified cost of $390,904,684)(Note 3) .................... $ 491,761,222
Foreign currency holdings, at value
(identified cost of $124,691) ................................ 125,383
Cash ........................................................... 1,415,096
Receivable for forward foreign currency exchange contracts ..... 181,390
Receivable for investments sold ................................ 5,285,177
Dividends and interest receivable .............................. 1,373,487
-------------
500,141,755
-------------
LIABILITIES

Payable for investments purchased .............................. 12,397,643
Accrued management fees (Note 2) ............................... 525,175
Payable for directors' fees and expenses ....................... 778
-------------
12,923,596
-------------
Net Assets ..................................................... $ 487,218,159
=============
CAPITAL SHARES, $0.01 PAR VALUE

Authorized ..................................................... 200,000,000
=============
Outstanding .................................................... 59,558,774
=============
Net Asset Value Per Share ...................................... $ 8.18
=============
NET ASSETS CONSIST OF:

Capital (par value and paid-in surplus) ........................ $ 392,804,202
Undistributed net investment income ............................ 1,450,596
Accumulated net realized loss on investments and foreign
currency transactions ........................................ (8,045,387)
Net unrealized appreciation on investments and translation of
assets and liabilities in foreign currencies (Note 3) ........ 101,008,748
-------------
$ 487,218,159
=============

See Notes to Financial Statements

12 1-800-345-6488

Statement of Operations

FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)

INVESTMENT INCOME

Income:

Dividends (net of foreign taxes withheld of $556,949) ........... $ 4,019,895
Interest ........................................................ 349,910
------------
4,369,805
------------
Expenses (Note 2):
Management fees ................................................. 3,073,229
Directors' fees and expenses .................................... 2,640
------------
3,075,869
------------
Net investment income ........................................... 1,293,936
------------

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

Net realized gain (loss) on:

Investments ..................................................... 20,352,394
Foreign currency transactions ................................... (628,745)
------------
19,723,649
------------
Change in net unrealized appreciation on:
Investments ..................................................... 32,182,103
Translation of assets and liabilities in foreign currencies ..... (21,010,377)
------------
11,171,726
------------
Net realized and unrealized gain on investments and foreign
currency ...................................................... 30,895,375
------------
Net Increase in Net Assets Resulting from Operations ............ $ 32,189,311
============

See Notes to Financial Statements

www.americancentury.com 13

Statements of Changes in Net Assets

SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED) AND YEAR ENDED DECEMBER 31, 1998

Increase in Net Assets 1999 1998

OPERATIONS

Net investment income ........................ $ 1,293,936 $ 884,825
Net realized gain (loss) on investments
and foreign currency transactions .......... 19,723,649 (26,673,060)
Change in net unrealized appreciation on
investments and translation of assets
and liabilities in foreign currencies ...... 11,171,726 66,336,554
------------- -------------
Net increase in net assets resulting
from operations ............................ 32,189,311 40,548,319
------------- -------------

DISTRIBUTIONS TO SHAREHOLDERS

From net investment income ................... -- (1,512,683)
From net realized gains from investment
transactions ............................... -- (12,713,908)
In excess of net realized gains .............. -- (2,814,898)
------------- -------------
Decrease in net assets from
distributions .............................. -- (17,041,489)
------------- -------------

CAPITAL SHARE TRANSACTIONS

Proceeds from shares sold .................... 358,479,413 677,603,582
Proceeds from reinvestment of
distributions .............................. -- 17,041,489
Payments for shares redeemed ................. (322,412,689) (515,712,499)
------------- -------------
Net increase in net assets from capital
share transactions ......................... 36,066,724 178,932,572
------------- -------------

Net increase in net assets ................... 68,256,035 202,439,402

NET ASSETS

Beginning of period .......................... 418,962,124 216,522,722
------------- -------------
End of period ................................ $ 487,218,159 $ 418,962,124
============= =============

Undistributed net investment income .......... $ 1,450,596 $ 156,660
============= =============

TRANSACTIONS IN SHARES OF THE FUND

Sold ......................................... 45,613,458 91,449,353
Issued in reinvestment of distributions ...... -- 2,328,072
Redeemed ..................................... (41,013,724) (70,474,226)
------------- -------------
Net increase ................................. 4,599,734 23,303,199
============= =============

See Notes to Financial Statements

14 1-800-345-6488

Notes to Financial Statements

JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION -- American Century Variable Portfolios, Inc. (the corporation)
is registered under the Investment Company Act of 1940 as an open-end
diversified management investment company. VP International Fund (the fund) is
one of the six 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 are in accordance with
generally accepted accounting principles; these principles may require the use
of estimates by fund management.

FOREIGN CURRENCY TRANSACTIONS -- All assets and liabilities initially
expressed in foreign currencies are translated into U.S. dollars at prevailing
exchange rates at period end. 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. Realized
and unrealized gains and losses from foreign currency translations arise from
changes in currency exchange rates.

Net realized and unrealized foreign currency exchange gains or losses
occurring during the holding period of investment 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.

JOINT TRADING ACCOUNT -- Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, each 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.

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 primarily due to differing
treatments for foreign currency transactions and wash sales and may result in
reclassification among certain capital accounts.

At December 31, 1998, the fund had accumulated net realized capital loss
carryovers for federal income tax purposes of $18,962,528 (expiring in 2006)
which may be used to offset future taxable gains.

ADDITIONAL INFORMATION -- Funds Distributor, Inc. (FDI) is the corporation's
distributor. Certain officers of FDI are also officers of the corporation.

www.americancentury.com 15

Notes to Financial Statements
(Continued)

JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH RELATED PARTIES

The annualized fee schedule for the fund is as follows:

1.50% on the first $250 million
1.20% on the next $250 million
1.10% thereafter

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

Purchases and sales of investment securities, excluding short-term
investments, totaled $292,325,111 and $249,811,643, respectively.

As of June 30, 1999, accumulated net unrealized appreciation on investments
was $92,050,031, based on the aggregate cost of investments for federal income
tax purposes of $399,711,191, which consisted of unrealized appreciation of
$97,977,792 and unrealized depreciation of $5,927,761.

- --------------------------------------------------------------------------------
4. BANK LOANS

- --------------------------------------------------------------------------------
5. FUND EVENTS

The following name change became effective March 1, 1999:

NEW NAME FORMER NAME

FUND: VP International Fund American Century VP International

16 1-800-345-6488

VP International--Financial Highlights

<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED DECEMBER 31 (EXCEPT AS NOTED)

1999(1) 1998 1997 1996 1995 1994(2)
PER-SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .......$ 7.62 $ 6.84 $ 5.96 $ 5.33 $ 4.75 $ 5.00
----------- ----------- ----------- ----------- ---------- -----------
Income From Investment Operations
Net Investment Income (Loss) ............. 0.02 0.02 (0.02) 0.02(3) 0.03(3) --
Net Realized and Unrealized Gain (Loss)
on Investment Transactions ............... 0.54 1.24 1.11 0.74 0.55 (0.25)
----------- ----------- ----------- ----------- ---------- -----------
Total From Investment Operations ......... 0.56 1.26 1.09 0.76 0.58 (0.25)
----------- ----------- ----------- ----------- ---------- -----------
Distributions
From Net Investment Income ............... -- (0.04) (0.06) (0.03) -- --
In Excess of Net Investment Income ....... -- -- (0.01) (0.07) -- --
From Net Realized Gains on Investment
Transactions ........................... -- (0.36) (0.14) (0.03) -- --
In Excess of Net Realized Gains .......... -- (0.08) -- -- -- --
----------- ----------- ----------- ----------- ---------- -----------
Total Distributions ...................... -- (0.48) (0.21) (0.13) -- --
----------- ----------- ----------- ----------- ---------- -----------
Net Asset Value, End of Period .............$ 8.18 $ 7.62 $ 6.84 $ 5.96 $ 5.33 $ 4.75
=========== =========== =========== =========== ========== ===========
Total Return(4) .......................... 7.35% 18.76% 18.63% 14.41% 12.21% (5.00)%

RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses to Average
Net Assets ................................. 1.37%(5) 1.47%(6) 1.50% 1.50% 1.50% 1.50%(5)
Ratio of Net Investment Income (Loss) to
Average Net Assets ......................... 0.57%(5) 0.25%(6) (0.08)% 0.31% 0.70% (0.11)%(5)
Portfolio Turnover Rate .................... 57% 181% 173% 154% 214% 157%
Net Assets, End of Period (in thousands) ...$ 487,218 $ 418,962 $ 216,523 $ 101,335 $ 51,609 $ 17,993
</TABLE>

(1) Six months ended June 30, 1999 (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) ACIM voluntarily waived a portion of its management fee from October 1, 1998
through November 16, 1998. In absence of the waiver, the annualized ratio of
operating expenses to average net assets and annualized ratio of net
investment income to average net assets would have been 1.48% and 0.24%,
respectively, for the year ended December 31, 1998.

See Notes to Financial Statements

www.americancentury.com 17

Background Information

PORTFOLIO MANAGERS
VP International
HENRIK STRABO
MARK KOPINSKI

INVESTMENT PHILOSOPHY AND POLICIES

The philosophy behind American Century's Variable Portfolios 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 Variable Portfolios 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'S investment objective is capital growth. The fund invests
primarily in the equity securities of foreign companies that exhibit
accelerating earnings growth. It favors companies based in developed markets. It
will typically have significant share price fluctuations.

International investing involves special risks including political
instability and economic risk.

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 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. Currency restrictions, exchange control
regulations, currency devaluations and political developments may also affect
net asset value.

COMPARATIVE INDICES

The following indices are used in the report to serve as fund performance
comparisons. 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 dominant
industries. Created by Standard & Poor's Corporation, the index is viewed as a
broad measure of U.S. stock market performance.

MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) has developed several indices
that measure the performance of foreign stock markets. The best known is the
EUROPE, AUSTRALASIA, FAR EAST INDEX (EAFE), which is a widely followed group of
stocks from 20 countries. Within this index are two narrower indices. The MSCI
EUROPE measures stock performance in 14 European countries. The MSCI FAR EAST
measures stock performance in Japan, Hong Kong, Malaysia and Singapore.

18 1-800-345-6488 www.americancentury.com

Glossary

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.

INVESTMENT TERMS

* EXPENSE RATIO -- the operating expenses of the fund, expressed as a percentage
of average net assets. Shareholders pay an annual fee to the investment manager
for investment advisory and management services. The expenses and fees are
deducted from fund income, not from each shareholder account. (See Note 2 in the
Notes to Financial Statements.)

* MEDIAN MARKET CAPITALIZATION -- Market Capitalization (market cap) is the
total value of a company's stock and is calculated by multiplying the number of
outstanding common shares by the current share price. The company whose market
cap is in the middle of the portfolio is the median market cap. Half the
companies in the portfolio have values greater than the median, and half have
values that are less. If there is an even number of companies, then the median
is the average of the two companies in the middle.

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

* 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.

* 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.)

* 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.)

TYPES OF STOCKS

* 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.

* 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 -- stocks of companies that have experienced above-average
earnings growth and are expected to continue such growth. These stocks often
sell at high P/E ratios. Examples can include the stocks of high-tech,
healthcare and consumer staple companies.

* 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.

www.americancentury.com 19

Glossary
(Continued)

FUND CLASSIFICATIONS

INVESTMENT OBJECTIVE

* CAPITAL PRESERVATION -- offers taxable and tax-free money market funds for
relative stability of principal and liquidity.

* INCOME -- offers funds that can provide current income and competitive yields,
as well as a strong and stable foundation and generally lower volatility levels
than stock funds.

* GROWTH & INCOME -- offers funds that emphasize both growth and income provided
by either dividend-paying equities or a combination of equity and fixed-income
securities.

* GROWTH -- offers funds with a focus on capital appreciation and long-term
growth, generally providing high return potential with corresponding high price
fluctuation risk.

RISK

* CONSERVATIVE -- these funds generally provide lower return potential with
either low or minimal price fluctuation risk.

* MODERATE -- these funds generally provide moderate return potential with
moderate price fluctuation risk.

* AGGRESSIVE -- these funds generally provide high return potential with
corresponding high price fluctuation risk.

20 1-800-345-6488

[inside back cover]

RISK LEVEL - CONSERVATIVE

- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE - INCOME
- --------------------------------------------------------------------------------

RISK LEVEL - AGGRESSIVE

TAXABLE BONDS TAX-FREE BONDS
Target 2025* CA High-Yield Municipal
Target 2020* High-Yield Municipal
Target 2015*
Target 2010*
High-Yield
International Bond

RISK LEVEL - MODERATE

TAXABLE BONDS TAX-FREE BONDS
Long-Term Treasury CA Long-Term Tax-Free
Target 2005* Long-Term Tax-Free
Bond CA Insured Tax-Free
Premium Bond

RISK LEVEL - CONSERVATIVE

RISK LEVEL - AGGRESSIVE

DOMESTIC EQUITY
Small Cap Quantitative
Small Cap Value

RISK LEVEL - MODERATE

- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE - GROWTH
- --------------------------------------------------------------------------------

RISK LEVEL - AGGRESSIVE

RISK LEVEL - MODERATE

SPECIALTY
Global Natural Resources

The investment objective may be based on the fund's objective as stated in its
prospectus or fund profile, or the fund's categorization by independent rating
organizations based on its management style.

The classification of funds by risk category is based on quantitative historical
measures as well as qualitative prospective measures. It is not intended to be a
precise indicator of future risk or return levels. The degree of risk within
each category can vary significantly, and some fund returns have historically
been higher than more aggressive funds or lower than more conservative funds.
Please be aware that a fund's category may change over time. Therefore, it is
important that you read a fund's prospectus or fund profile carefully before
investing to ensure its objectives, policies and risk potential are consistent
with your needs.

For a definition of fund categories, see the Glossary.

[back cover]

[american century logo(reg.sm)]
American
Century

P.O. BOX 419385
KANSAS CITY, MISSOURI 64141-6385

WWW.AMERICANCENTURY.COM

INVESTOR RELATIONS
1-800-345-6488

AUTOMATED INFORMATION LINE
1-800-345-8765

FAX: 816-340-4360

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-345-1833

AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.

INVESTMENT MANAGER
AMERICAN CENTURY INVESTMENT MANAGEMENT, INC.
KANSAS CITY, MISSOURI

9908 Funds Distributor, Inc.
SH-SAN-17187 (c)1999 American Century Services Corporation
<PAGE>
[front cover]
JUNE 30, 1999

SEMIANNUAL REPORT
- -----------------
AMERICAN CENTURY
VARIABLE PORTFOLIOS

[graphic of stairs]

- -----------------------
VP BALANCED

[american century logo(reg.sm)]
American
Century

[inside front cover]

[left margin]

VARIABLE PORTFOLIOS
VP BALANCED
- -------------------

Our Message to You
- --------------------------------------------------------------------------------
/photo of James E. Stowers III and James E. Stowers, Jr./
James E. Stowers III, seated, with James E. Stowers, Jr.

During the six months ended June 30, 1999, we witnessed a surprising
turnaround in the U.S. economic outlook. When we last addressed you in the
annual report for American Century VP Balanced, the Federal Reserve (the U.S.
central bank) had recently cut short-term interest rates to bolster the U.S.
economy and help stabilize markets worldwide.

This came after economic and financial crises in Asia, Russia, and Latin
America, and the near collapse of several hedge funds. The global economic
outlook was still quite uncertain -- many financial observers predicted slow
economic growth in the U.S. in 1999 and further interest rate cuts.

Instead, global economic conditions rebounded more rapidly than expected.
By January 1999, overseas economies were stabilizing, the U.S. economy was
posting strong growth, and investor confidence had returned. Many investors who
had shifted their holdings into U.S. Treasury securities moved back into stocks
and higher-yielding bonds.

Interest rates rose while the U.S. stock market soared -- the benchmark
30-year Treasury bond yield closed above 6% for the first time in a year and a
half and the Dow Jones Industrial Average broke through 10,000 in the first
quarter and continued to climb to record highs in the second quarter.

In the spirit of our ongoing Year 2000 readiness disclosures,* here's an
update on our preparations for Y2K. Our senior level Year 2000 Steering
Committee, computer programmers, business partners, and Y2K team have been
working diligently to make January 1, 2000, a non-event for American Century
investors. All of our computer systems have been modified, tested, and returned
to production. We have an ongoing commitment to testing our systems with
vendors, business partners, and within the industry through the rest of the
year.

In March and April of this year, we participated in the Security Industry
Association's (SIA) industry-wide test and successfully processed transactions
for dates up to and beyond 2000. We also participated in the Market Data Test
conducted by the SIA and Financial Information Forum in May. Again, the computer
scripts were executed successfully with no Y2K-related errors.

Elsewhere on the corporate front, we continued to expand the American
Century investment team, which has doubled over the past three years. We're
committed to building and maintaining a talented management group.

As always, we appreciate your continued confidence in American Century.

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 Vice Chairman of the Board and
Chief Executive Officer

[right margin]

Table of Contents
Report Highlights ...................................................... 2
Market Perspective ..................................................... 3
VP BALANCED
Performance Information ................................................ 5
Management Q&A ......................................................... 6
Types of Investments ................................................... 6
Top Ten Stock Holdings ................................................. 7
Top Five Stock Industries .............................................. 7
Fixed-Income Portfolio ................................................. 8
Schedule of Investments ................................................ 9
FINANCIAL STATEMENTS
Statement of Assets and
Liabilities ......................................................... 15
Statement of Operations ................................................ 16
Statements of Changes
in Net Assets ....................................................... 17
Notes to Financial
Statements .......................................................... 18
Financial Highlights ................................................... 20
OTHER INFORMATION
Background Information
Investment Team
Leaders .......................................................... 21
Investment Philosophy
and Policies ..................................................... 21
Comparative Indices ................................................. 21
Glossary ............................................................... 22

* This letter includes a Year 2000 Readiness Disclosure.

www.americancentury.com 1

Report Highlights
- --------------------------------------------------------------------------------

MARKET PERSPECTIVE

* U.S. stock and bond markets diverged during the six months ended June 30,
1999. In general, stocks rallied while bonds declined.

* Three short-term interest rate cuts by the Federal Reserve (the Fed) in late
1998 helped bolster the U.S. economy and investor confidence, lending
strength to stocks.

* The Fed's actions in 1998 worked almost too well. U.S. economic growth and
corporate earnings rebounded, the stock market rallied, and by the end of
June 1999, the central bank had to raise short-term rates slightly to stay
ahead of inflationary pressures.

* Large-capitalization stock indices such as the Dow Jones Industrial Average
and the S&P 500 continued to post higher returns than smaller-cap indices,
but the performance gap between larger- and smaller-company stocks narrowed
significantly. Even the beleaguered small-cap stock indices posted
respectable returns.

* Value stocks generally outperformed growth stocks for the first six months
of 1999, reversing another recent trend.

* Cyclical stocks staged a comeback as investors regained faith in the
strength of the global economy. High-tech and pharmaceutical stocks fell
somewhat out of favor.

* Strong U.S. economic growth and rising interest rates resulted in low
returns for most bonds, especially Treasury securities.

* Corporate bonds and mortgage-backed securities benefited from demand from
yield-oriented investors who sold Treasurys as economic conditions improved.

MANAGEMENT Q&A

* VP Balanced's return for the six months ended June 30 reflected the strength
of the stock market and the relative weakness of bonds.

* The fund's equity portfolio didn't match the pace of the S&P 500,
particularly in the first quarter.

* VP Balanced's stock portfolio had more of a smaller-company and
value-oriented bias than the S&P 500, which is the primary reason first
quarter returns trailed the index.

* The smaller-company and value-oriented bias helped VP Balanced beat the S&P
500 in the second quarter.

* We brought our industry positions in the stock portfolio more in line with
the S&P 500. We're focusing more on stock selection within each industry.

* The bond portfolio slightly outperformed its new benchmark, the Lehman
Brothers Aggregate Bond Index. We switched to the new index because we
believe it better represents the broader U.S. taxable bond market.

* The portfolio now holds fewer corporate bonds and more mortgage-backed
securities than it did in 1998.

* We've invested a small portion of the corporate bond portfolio in securities
rated BB, an area where we think we can add value and boost fund
performance.

[left margin]

VP BALANCED
TOTAL RETURNS: AS OF 6/30/99
6 Months 4.12%*
1 Year 5.39%
INCEPTION DATE: 5/1/91
NET ASSETS: $285.3 million

* Not annualized.

Investment terms are defined in the Glossary on pages 22-23.

2 1-800-345-6488

Market Perspective from Mark Mallon
- --------------------------------------------------------------------------------
/photo of Mark Mallon/
Mark Mallon, head of growth and income equity, specialty, and asset allocation
funds at American Century

STOCKS AND BONDS DIVERGE

During the six months ended June 30, 1999, a resilient U.S. economy, strong
corporate earnings, and revitalized investor confidence spurred a U.S. stock
market rebound while simultaneously pushing up interest rates and dampening
domestic bond returns.

This divergence in stock and bond performance is displayed dramatically in
the returns for the S&P 500 and the Lehman Brothers Aggregate Bond Index (at
right). The blended index shows how a 60% S&P 500/40% Lehman Aggregate
combination would have performed.

RECALLING THE GLOOMY OUTLOOK

It's fascinating how much financial conditions can change in just six
months. At the end of 1998 and early in 1999, many investors were still feeling
tentative in the aftermath of the startling developments in the second half of
1998. That's when equity markets plunged worldwide in response to global credit
and financial crises, then began to recover after the Federal Reserve (the
Fed--the U.S. central bank), cut short-term interest rates three times to ease
the credit crisis and spur economic growth.

Many investors pulled their money out of equities and foreign investments
as the crises erupted and opted instead for the relative safety and liquidity of
U.S. Treasury securities, causing Treasury yields to plummet and Treasury bond
prices to soar.

THE TURNAROUND

The U.S. economy demonstrated remarkable staying power during the winter of
1998-99, helping to ease the global financial crisis. U.S. economic growth and
corporate earnings in the first quarter of 1999 were stronger than expected, and
foreign economies showed signs of stabilization and recovery. As a result, by
the end of the first quarter, the venerable Dow Jones Industrial Average had
rocketed past 10,000. The three most popular U.S. equity indices -- the Dow
Industrials, the S&P 500, and the Nasdaq Composite -- all posted record highs at
the close of the first half of 1999.

The renewed corporate and economic strength didn't go unnoticed by the Fed.
Just days after the U.S. government reported in May that consumer prices
experienced their biggest monthly gain in April in almost nine years, the Fed
announced that it had shifted its interest rate bias toward higher rates. Then
on June 30, the Fed pushed short-term interest rates a quarter of a percent
higher. It appeared to be a precautionary move, intended to keep U.S. monetary
policy one step ahead of inflationary pressures.

[right margin]

"A RESILIENT U.S. ECONOMY, STRONG CORPORATE EARNINGS, AND REVITALIZED INVESTOR
CONFIDENCE SPURRED A U.S. STOCK MARKET REBOUND WHILE SIMULTANEOUSLY DAMPENING
DOMESTIC BOND RETURNS."

MARKET RETURNS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
S&P 500 12.23%
BLENDED INDEX 6.89%
LEHMAN BROS. AGGREGATE
BOND INDEX -1.37%

Source: Lipper Inc.

[line graph - data below]

MARKET PERFORMANCE (GROWTH OF $1.00)
FOR THE SIX MONTHS ENDED JUNE 30, 1999
Lehman Bros.
S&P 500 Aggregate Bond Index Blended Index
12/31/1998 $1.00 $1.00 $1.00
1/31/1999 $1.04 $1.01 $1.03
2/28/1999 $1.01 $0.99 $1.00
3/31/1999 $1.05 $0.99 $1.03
4/30/1999 $1.09 $1.00 $1.05
5/31/1999 $1.06 $0.99 $1.03
6/30/1999 $1.12 $0.99 $1.07

Source: Lipper Inc.

These indices are defined on page 21.

www.americancentury.com 3

Market Perspective from Mark Mallon
- --------------------------------------------------------------------------------
(Continued)
STOCK RETURNS -- SIZE MATTERED LESS

So far in 1999, U.S. stocks have performed reasonably well, regardless of
size. For the six months, the S&P 500 returned 12.23%, the S&P MidCap 400 rose
6.87%, and the S&P SmallCap 600 gained 5.04%. That's in contrast with 1998, when
the SmallCap index fell and the MidCap index trailed the large-cap S&P 500 by
over 10 percentage points. In April 1999, investors appeared to begin viewing
big-company stocks as too expensive, while mid- and small-company stocks looked
undervalued.

Similarly, value stocks (shares considered to be relatively inexpensive)
gained ground at the expense of growth stocks (companies with above-average
earnings growth). Growth stocks had been in favor during the previous three
years, but that changed early in 1999. For the six months ended June 30, 1999,
the S&P 500/BARRA Value Index returned 13.96%, outpacing the 10.98% return of
the S&P 500/BARRA Growth Index. Most of the performance disparity was focused in
April, when the S&P 500/BARRA Value Index was up 8.62%, compared with a -0.19%
return for the S&P 500/BARRA Growth Index.

Another big U.S. stock story was sector rotation. It became clearer by
April that the global economy in general was regaining some strength, and
cyclical stocks (whose prices and earnings tend to follow the ups and downs of
the economy) made a comeback. To buy these cyclical stocks, investors sold
previous favorites such as high-tech and pharmaceutical shares.

BOND PERFORMANCE -- INFLATION FEARS RETURNED

U.S. bond returns were generally quite low for the six-month period as
strong economic growth translated into fears of future inflation and higher
interest rates. For the most part, only the shortest-maturity securities,
high-yield, and inflation-adjusted bonds posted positive returns.

A bond version of sector rotation began in January. By early 1999, bond
investors seemed to sense that the gloomiest economic predictions were not
coming true, and they became more interested in higher yields than in safety and
liquidity. As a result, bondholders began selling Treasurys and buying
higher-yielding bonds such as corporate and mortgage-backed securities.

Corporate and mortgage-backed bond returns were also limited by higher
interest rates. However, continued economic strength and healthy corporate
profits helped boost corporate bonds. Higher rates held one positive for
mortgage-backeds -- they helped slow the record mortgage refinancing wave that
occurred in 1998.

As you can see in the accompanying table and graph, corporates and
mortgage-backeds outperformed Treasurys for the first six months of 1999, when
Treasury yields rose significantly. The benchmark 30-year Treasury bond yield
climbed above 6% for the first time in a year and a half.

[left margin]

"CORPORATES AND MORTGAGE-BACKEDS OUTPERFORMED TREASURYS, WHEN TREASURY YIELDS
ROSE SIGNIFICANTLY."

[line graph - data below]

RISING TREASURY YIELD CURVE

YEARS TO MATURITY 12/31/98 6/30/99
1 4.58% 5.35%
2 4.52% 5.54%
3 4.67% 5.61%
4 4.67% 5.72%
5 4.57% 5.66%
6 4.60% 5.78%
7 4.62% 5.90%
8 4.62% 5.86%
9 4.63% 5.82%
10 4.63% 5.78%
11 4.73% 5.86%
12 4.84% 5.94%
13 4.94% 6.02%
14 5.05% 6.10%
15 5.15% 6.18%
16 5.20% 6.20%
17 5.25% 6.22%
18 5.30% 6.24%
19 5.35% 6.26%
20 5.40% 6.27%
21 5.40% 6.26%
22 5.39% 6.25%
23 5.39% 6.24%
24 5.38% 6.22%
25 5.37% 6.21%
26 5.32% 6.17%
27 5.27% 6.13%
28 5.22% 6.10%
29 5.17% 6.06%
30 5.12% 6.02%

Source: Bloomberg Financial Markets

BOND INDEX RETURNS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
LEHMAN BROS. AGGREGATE
BOND INDEX -1.37%
LEHMAN BROS. CORPORATE
BOND INDEX -2.26%
LEHMAN BROS. MORTGAGE-
BACKED SECURITIES INDEX 0.53%
LEHMAN BROS. TREASURY
BOND INDEX -2.50%

Source: Russell/Mellon Analytical

4 1-800-345-6488

VP Balanced--Performance
- --------------------------------------------------------------------------------

TOTAL RETURNS AS OF JUNE 30, 1999
LEHMAN AGGREGATE
VP BALANCED BLENDED INDEX(2) S&P 500 BOND INDEX
=============================================================================
6 MONTHS(1) 4.12% 6.89% 12.23% -1.37%
1 YEAR 5.39% 14.92% 22.75% 3.15%
=============================================================================
AVERAGE ANNUAL RETURNS
3 YEARS 14.17% 20.36% 29.00% 7.23%
5 YEARS 14.39% 19.85% 27.81% 7.83%
LIFE OF FUND 11.46% 15.13% 19.85% 7.77%

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

(1) Returns for periods less than one year are not annualized.

(2) The bond portion of the blended index has been changed from the Lehman
Brothers Intermediate Government/Corporate Index to the Lehman Brothers
Aggregate Bond Index, which we believe better represents the broader U.S.
taxable bond market.

See pages 21-22 for information about the blended index and returns.

[mountain graph - data below]

GROWTH OF $10,000 OVER LIFE OF FUND
Value on 6/30/1999
S&P 500 $43,848
New Blended Index $31,718
Old Blended Index $31,191
VP Balanced $24,247
Lehman Aggregate
Bond Index $18,435
Lehman Int.
Govt./Corp. Index $17,651

<TABLE>
<CAPTION>
Lehman Int. Old Blended Lehman Aggregate New Blended
VP Balanced S&P 500 Govt./Corp. Index Index Bond Index Index
DATE VALUE VALUE VALUE VALUE VALUE VALUE
<S> <C> <C> <C> <C> <C> <C>
5/1/91 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
6/30/91 $9,660 $9,954 $10,069 $9,999 $10,053 $9,994
9/30/91 $10,844 $10,487 $10,554 $10,513 $10,624 $10,542
12/31/91 $12,553 $11,365 $11,061 $11,244 $11,163 $11,286
3/31/92 $11,752 $11,078 $10,960 $11,032 $11,020 $11,057
6/30/92 $11,349 $11,288 $11,394 $11,332 $11,465 $11,362
9/30/92 $11,523 $11,644 $11,897 $11,746 $11,958 $11,772
12/31/92 $11,795 $12,231 $11,854 $12,084 $11,990 $12,141
3/31/93 $11,941 $12,765 $12,323 $12,593 $12,485 $12,659
6/30/93 $12,246 $12,828 $12,590 $12,739 $12,816 $12,830
9/30/93 $12,783 $13,159 $12,874 $13,051 $13,151 $13,162
12/31/93 $12,701 $13,464 $12,896 $13,242 $13,159 $13,348
3/31/94 $12,696 $12,954 $12,634 $12,833 $12,781 $12,891
6/30/94 $12,378 $13,008 $12,558 $12,834 $12,649 $12,871
9/30/94 $12,748 $13,644 $12,661 $13,252 $12,727 $13,280
12/31/94 $12,778 $13,641 $12,647 $13,244 $12,775 $13,299
3/31/95 $13,264 $14,970 $13,203 $14,251 $13,419 $14,344
6/30/95 $14,386 $16,400 $13,861 $15,352 $14,236 $15,514
9/30/95 $15,128 $17,704 $14,092 $16,186 $14,515 $16,375
12/31/95 $15,476 $18,769 $14,588 $16,999 $15,133 $17,246
3/31/96 $15,806 $19,777 $14,467 $17,490 $14,865 $17,679
6/30/96 $16,280 $20,665 $14,558 $18,004 $14,950 $18,196
9/30/96 $16,744 $21,304 $14,815 $18,467 $15,227 $18,669
12/31/96 $17,365 $23,078 $15,178 $19,571 $15,684 $19,826
3/31/97 $16,864 $23,697 $15,162 $19,876 $15,596 $20,100
6/30/97 $18,914 $27,837 $15,609 $22,194 $16,168 $22,502
9/30/97 $20,208 $29,919 $16,030 $23,430 $16,705 $23,811
12/31/97 $20,111 $30,778 $16,373 $24,035 $17,196 $24,502
3/31/98 $21,748 $35,071 $16,629 $26,195 $17,464 $26,705
6/30/98 $23,005 $36,228 $16,941 $26,913 $17,873 $27,484
9/30/98 $21,330 $32,624 $17,702 $25,791 $18,629 $26,308
12/31/98 $23,284 $39,572 $17,755 $29,118 $18,692 $29,704
3/31/99 $23,191 $41,547 $17,721 $29,968 $18,599 $30,533
6/30/99 $24,247 $43,848 $17,651 $31,191 $18,435 $31,718

$10,000 investment made 5/1/91
</TABLE>

The graph at left shows the growth of a $10,000 investment over the life of the
fund, while the graph below shows the fund's year-by-year performance. Both the
old and new blended indices are provided for comparison in the graph at left. VP
Balanced's total returns include operating expenses (such as transaction costs
and management fees) that reduce returns, while the total returns of the indices
do not. 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.

[bar graph - data below]

ONE-YEAR RETURNS OVER LIFE OF FUND (PERIODS ENDED JUNE 30)

VP Balanced New Blended Index
DATE RETURN RETURN
6/30/91* -3.40% -0.07%
6/30/92 17.49% 13.66%
6/30/93 7.90% 12.89%
6/30/94 1.09% 0.32%
6/30/95 16.23% 20.66%
6/30/96 13.17% 17.61%
6/30/97 16.18% 24.08%
6/30/98 21.61% 22.31%
6/30/99 5.39% 14.92%

* From 5/1/91 (the fund's inception date) to 6/30/91.

www.americancentury.com 5

VP Balanced--Q&A
- --------------------------------------------------------------------------------
/photo of John Schniedwind, Jeff Tyler/
/photo of John Walsh/

Equity team: John Schniedwind, Jeff Tyler
Fixed-income team: John Walsh (pictured), Jeff Houston

Based on interviews with John Schniedwind and John Walsh, portfolio
managers on the VP Balanced fund investment teams. John Walsh, who has been with
American Century since 1996, joined the fund's fixed-income team in January
1999, replacing Bud Hoops, who still oversees American Century's entire
corporate securities team.

HOW DID THE FUND PERFORM FOR THE SIX MONTHS ENDED JUNE 30?

VP Balanced's portfolio of approximately 60% U.S. stocks and 40% U.S. bonds
returned 4.12%. VP Balanced's stock holdings returned 7.60%, while the bonds
returned -1.01%. VP Balanced's benchmark (a blended index that combines the S&P
500 and the Lehman Brothers Aggregate Bond Index in the same 60%/40% proportion
as the asset mix of the portfolio) returned 6.89%. This reflected the combined
12.23% return of the S&P 500 and the -1.37% return of the Lehman index.

WHAT CAUSED THE RETURN DIFFERENTIAL BETWEEN THE FUND AND THE BLENDED INDEX?

The S&P 500 outperformed VP Balanced's equity portfolio for the six-month
period. Although recent returns were more favorable -- the equity portfolio beat
the S&P 500 in the second quarter of 1999 -- first-quarter returns created a
deficit that the fund didn't overcome during the period.

In the first quarter, the S&P 500's performance continued to be dominated
by a small group of large-company growth stocks. VP Balanced owned these stocks
too, but they were underweighted in the portfolio relative to their weighting in
the index.

That's because VP Balanced had more of a smaller-company and value-oriented
bias than the S&P 500. The fund's stock valuation model ranked mid-sized and
small-company issues as more attractive than bigger, higher-priced growth
companies. Unfortunately, many of the stocks highlighted by the model
underperformed large-cap growth stocks until the second quarter.

WHAT HAPPENED IN THE SECOND QUARTER THAT CHANGED RELATIVE PERFORMANCE?

Primarily the resurgence of smaller-company and value-oriented stocks, as
Mark Mallon discusses in the Market Perspective section of this report. VP
Balanced's equity portfolio continued to invest in smaller companies, on
average, and have more of a value bias than the S&P 500.

We also refined our investment approach. We've found that our quantitative
process is more effective at picking individual stocks than industries. So

[left margin]

"THE PORTFOLIO NOW HOLDS FEWER CORPORATE BONDS AND MORE MORTGAGE-BACKED
SECURITIES THAN IT DID IN 1998."

[pie charts - data below]

TYPES OF INVESTMENTS
IN THE PORTFOLIO

AS OF JUNE 30, 1999
Common Stocks 60%
Corporate Bonds 16%
U.S. Treasury
Securities 9%
Mortgage- & Asset-
Backed Securities 12%
Other 3%

AS OF DECEMBER 31, 1998
Common Stocks 59%
Corporate Bonds 18%
U.S. Treasury
Securities 11%
Mortgage- & Asset-
Backed Securities 9%
Other 3%

Security types are defined on page 22.

6 1-800-345-6488

VP Balanced--Q&A
- --------------------------------------------------------------------------------
(Continued)

rather than significantly overweighting and underweighting entire sectors
compared with the S&P 500, we are bringing our industry positions more in line
with the index. We're over- and underweighting companies within each sector.

For example, we have recently overweighted financial services stocks
compared with the S&P 500. Going forward, the percentage of financial services
companies in the fund will likely more closely track the percentage in the
index. If we decide to overweight one company, we'd likely underweight other
financial services holdings to keep the overall sector weighting closer to the
index.

WHAT FACTORS AFFECTED THE PERFORMANCE OF THE FIXED-INCOME PORTFOLIO?

In addition to the economic strength and rising interest rates that caused
low bond returns, the management team continued to gradually bring the
fixed-income portfolio more in line with the Lehman Brothers Aggregate Bond
Index, which became the portfolio's benchmark in the first quarter of 1999. We
switched to the Aggregate Bond index because we believe it better represents the
broader U.S. taxable bond market than the former benchmark (the Lehman
Intermediate Government/ Corporate Index).

One primary difference between the two indices is that the Aggregate
includes mortgage-backed securities, while the Intermediate Government/
Corporate does not. This is important because VP Balanced has owned
mortgage-backed securities in recent years. Also, the Aggregate has a smaller
percentage of corporate bonds than we've typically held in VP Balanced.

The portfolio now holds fewer corporate bonds and more mortgage-backed
securities than it did in 1998. One of the benefits of additional
mortgage-backed holdings is that the portfolio has more AAA securities--most
mortgage-backed securities are backed by U.S. government agencies with AAA
ratings.

Also, we have been investing a small portion of the portfolio in corporate
bonds rated BB. This is an area where we think we can add value and boost fund
performance.

CAN YOU ELABORATE ON THIS CHANGE?

Bonds that are rated AAA, AA, A, or BBB are considered "investment-grade"
securities, meaning they are relatively safe from default. Many funds and
institutions concentrate exclusively on investment-grade bonds.

In contrast, bonds rated B and below are more vulnerable to sudden swings
in credit quality. As a result, they offer high yields to compensate for the
additional risk. "High-yield" investors focus on these bonds, as well as those
that are unrated.

That leaves bonds rated BB, which are lower quality than investment-grade
bonds but don't offer enough yield for high-yield investors. This area of the
market is largely overlooked and often inefficiently priced.

WON'T THESE BB SECURITIES MAKE THE FUND'S BOND PORTFOLIO MORE RISKY?

We believe we can manage the additional risk in this sector successfully.
First, we have an experienced credit research team that is very familiar with
this part of the market.

Second, we're taking a fairly conservative approach. Large, established
companies with stable cash flows issue the BB bonds we're buying. They're

[right margin]

TOP TEN STOCK HOLDINGS
% OF EQUITY PORTFOLIO
AS OF AS OF
6/30/99 12/31/98
MICROSOFT CORP. 4.5% 3.9%
CHASE MANHATTAN
CORP. 3.0% 2.4%
INTEL CORP. 2.9% 2.5%
WAL-MART STORES, INC. 2.8% 1.7%
BELLSOUTH CORP. 2.6% 3.4%
MORGAN STANLEY
DEAN WITTER & CO. 2.1% 1.4%
HEWLETT-PACKARD CO. 2.1% 0.8%
AT&T CORP. 1.8% 3.4%
APPLE COMPUTER, INC. 1.8% 1.4%
LUCENT TECHNOLOGIES
INC. 1.7% 1.3%

TOP FIVE STOCK INDUSTRIES
% OF EQUITY PORTFOLIO
AS OF AS OF
6/30/99 12/31/98
TELEPHONE
COMMUNICATIONS 8.9% 11.1%
COMPUTER SOFTWARE
& SERVICES 8.2% 9.9%
BANKING 7.6% 7.7%
COMPUTER SYSTEMS 6.1% 4.1%
PHARMACEUTICALS 6.0% 7.1%

www.americancentury.com 7

VP Balanced--Q&A
- --------------------------------------------------------------------------------
(Continued)

basically "upgrade candidates"-- bonds that are currently rated BB but that we
think are worthy of a higher rating.

When a BB security is upgraded to a higher rating, it often experiences a
significant price increase. Its newfound investment-grade status attracts
greater demand from investors.

WHAT'S YOUR OUTLOOK FOR THE U.S. ECONOMY AND THE MARKETS?

We expect to see continued strong economic growth, modest but higher
inflation, and less interest rate volatility than we've seen over the past year.
The strong growth/modest inflation formula is a familiar one that has pushed the
U.S. stock market higher for the past four years. Barring any major unforeseen
political or economic shocks, this could continue through 1999.

Our forecast of greater interest rate stability is based in part on recent
volatility. We think the dramatic drop in interest rates in 1998 was an
exaggerated move caused by abnormal occurrences such as the rapid liquidation of
positions by highly leveraged hedge funds. We don't anticipate that kind of
steep decline in interest rates anytime soon. Similarly, we don't expect rates
to rise as much as they did in the first half of 1999. Another interest rate
hike or two by the Fed and somewhat higher inflation are already reflected in
bond prices and yields, so we believe we could see rates increase slightly or
trade in a relatively narrow range. Corporate and mortgage-backed securities
should perform quite well if interest rate volatility remains relatively low.

WHAT'S YOUR OUTLOOK FOR VP BALANCED?

VP Balanced's investment portfolio continued to evolve during the first
half of 1999 as we finished switching to the new quantitative equity management
style, focused our equity strategy less on industry weightings and more on stock
selection, and adjusted to a new bond benchmark. The next six months should be
less eventful.

On the stock side, we'll continue to try to outperform the S&P 500. We rely
on our computer-driven process to find stocks with compelling expected returns
(based on both growth and value measures), then build a portfolio that can
potentially provide higher returns than the index without taking on more risk
than would be involved in investing in the index directly.

On the bond side, we'll continue to track the Lehman Aggregate Bond Index,
aiming to outperform the index by modestly overweighting the portfolio in
relatively undervalued, higher-yielding sectors of the market.

[left margin]

"ONE OF THE BENEFITS OF ADDITIONAL MORTGAGE-BACKED HOLDINGS IS THAT THE
PORTFOLIO HAS MORE AAA SECURITIES."

FIXED-INCOME PORTFOLIO
============================================================================
AS OF AS OF
6/30/99 12/31/98
============================================================================
PORTFOLIO SENSITIVITY TO INTEREST RATES
WEIGHTED AVERAGE MATURITY 8.3 YEARS 6.9 YEARS
DURATION 4.7 YEARS 4.4 YEARS
============================================================================
PORTFOLIO CREDIT QUALITY % OF FIXED-INCOME PORTFOLIO
AAA 62% 55%
AA 3% 4%
A 20% 29%
BBB 12% 9%
BB 3% 3%
------ ------
100% 100%
====== ======

Investment terms are defined in the Glossary on pages 22-23. Ratings provided by
Standard & Poor's. See Credit Rating Guidelines on page 23 for more information

8 1-800-345-6488

VP Balanced--Schedule of Investments
- --------------------------------------------------------------------------------

NOTE: For securities denominated in foreign currencies, the market value is
translated into U.S. dollars based on exchange rates as of the last day of
reporting period.

JUNE 30, 1999 (UNAUDITED)

Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS--60.4%
AEROSPACE & DEFENSE--1.5%
8,700 Cordant Technologies Inc. $ 393,131
9,200 EG&G, Inc. 327,750
10,900 General Dynamics Corp. 746,650
42,300 Goodrich (B.F.) Company (The) 1,797,750
13,100 United Technologies Corp. 939,106
------------
4,204,387
------------
AIRLINES--0.2%
2,900 AMR Corp.(1) 197,925
1,700 Delta Air Lines Inc. 97,962
4,700 Southwest Airlines Co. 146,288
1,100 US Airways Group Inc.(1) 47,919
------------
490,094
------------
AUTOMOBILES & AUTO PARTS--1.1%
6,150 Delphi Automotive Systems Corp. 114,159
40,400 Ford Motor Co. 2,280,075
8,800 General Motors Corp. 580,800
------------
2,975,034
------------
BANKING--4.6%
47,300 Banc One Corp. 2,817,306
24,200 BankAmerica Corp. 1,774,162
60,100 Chase Manhattan Corp. 5,206,162
5,600 Fifth Third Bancorp 372,925
21,800 First Union Corp. 1,024,600
13,700 Fleet Financial Group, Inc. 607,938
4,900 GreenPoint Financial Corp. 160,781
7,200 Wells Fargo & Co. 307,800
10,200 Zions Bancorporation 648,975
------------
12,920,649
------------
BIOTECHNOLOGY--1.4%
34,800 Amgen Inc.(1) 2,117,362
10,900 Biogen, Inc.(1) 701,347
10,600 Chiron Corp.(1) 219,619
14,600 Genzyme Corp. 707,644
4,700 MedImmune, Inc.(1) 319,159
------------
4,065,131
------------
BROADCASTING & MEDIA--1.1%
2,100 Cablevision Systems Corp. Cl A(1) 147,000
38,500 CBS Corp.(1) 1,672,344
14,400 Comcast Corp. Cl A 553,500

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

4,100 EchoStar Communications Corp.
Cl A(1) $ 629,222
------------
3,002,066
------------
BUILDING & HOME IMPROVEMENTS--0.1%
7,700 Centex Construction Products Inc. 262,762
------------
BUSINESS SERVICES & SUPPLIES--0.5%
10,400 Mastech Corp.(1) 193,050
16,600 Metzler Group, Inc. (The)(1) 458,056
16,800 Ogden Corp. 452,550
6,800 Valassis Communications, Inc.(1) 249,050
------------
1,352,706
------------
CHEMICALS & RESINS--1.0%
12,700 Dow Chemical Co. 1,611,312
18,200 du Pont (E.I.) de Nemours & Co. 1,243,288
2,300 Rohm and Haas Co. 98,612
------------
2,953,212
------------
COMMUNICATIONS EQUIPMENT--2.5%
16,000 CommScope, Inc.(1) 492,000
12,900 Comverse Technology, Inc.(1) 973,144
22,300 Corning Inc. 1,563,788
44,000 Lucent Technologies Inc. 2,967,250
13,500 Nortel Networks Corp. 1,171,969
------------
7,168,151
------------
COMPUTER PERIPHERALS--0.9%
32,600 Cisco Systems Inc.(1) 2,099,644
6,400 Lexmark International Group, Inc.
Cl A(1) 422,800
------------
2,522,444
------------
COMPUTER SOFTWARE & SERVICES--4.9%
15,300 America Online Inc.(1) 1,690,650
16,300 American Management
System, Inc.(1) 522,109
6,200 Concentric Network Corp.(1) 246,256
7,500 Concord EFS, Inc.(1) 317,578
10,300 Keane, Inc.(1) 233,038
86,300 Microsoft Corp.(1)(2) 7,777,785
16,500 NCR Corp.(1) 805,406
5,900 Network Solutions, Inc.(1) 466,653
6,800 Sterling Software, Inc.(1) 181,475
44,700 Unisys Corp.(1) 1,740,506
------------
13,981,456
------------
COMPUTER SYSTEMS--3.7%
64,600 Apple Computer, Inc.(1) 2,995,825
34,400 Dell Computer Corp.(1) 1,271,725

See Notes to Financial Statements

www.americancentury.com 9

VP Balanced--Schedule of Investments
- --------------------------------------------------------------------------------
(Continued)
JUNE 30, 1999 (UNAUDITED)

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

6,300 Gateway Inc.(1) $ 371,700
35,300 Hewlett-Packard Co. 3,547,650
17,500 International Business Machines
Corp. 2,261,875
------------
10,448,775
------------
CONSTRUCTION & PROPERTY
DEVELOPMENT--0.3%
14,300 Centex Corp. 537,144
8,100 Pulte Corp. 186,806
------------
723,950
------------
CONSUMER PRODUCTS--0.9%
15,900 Avon Products, Inc. 882,450
9,300 Clorox Co. (The) 993,356
1,500 Colgate-Palmolive Co. 148,125
4,300 Procter & Gamble Co. (The) 383,775
2,200 Whirlpool Corp. 162,800
------------
2,570,506
------------
DIVERSIFIED COMPANIES--1.7%
26,100 General Electric Co. (U.S.) 2,949,300
14,000 Tyco International Ltd. 1,326,500
9,400 Unilever N.V. New York Shares 655,650
------------
4,931,450
------------
ELECTRICAL & ELECTRONIC
COMPONENTS--1.9%
84,500 Intel Corp. 5,025,109
6,600 Rockwell International Corp. 400,950
------------
5,426,059
------------
ENERGY (PRODUCTION & MARKETING)--3.2%
6,400 Amerada Hess Corp. 380,800
15,200 American Power Conversion
Corp.(1) 305,425
16,400 Anadarko Petroleum Corp. 603,725
23,800 Apache Corp. 928,200
10,300 Atlantic Richfield Co. 860,694
5,900 Burlington Resources Inc. 255,175
20,200 Exxon Corp. 1,557,925
26,600 Mobil Corp. 2,633,400
2,100 Occidental Petroleum Corp. 44,362
5,800 Sunoco, Inc. 175,088
7,500 Texaco Inc. 468,750
36,300 Union Pacific Resources 592,144
3,600 Vastar Resources, Inc. 188,775
------------
8,994,463
------------
ENERGY (SERVICES)--0.4%
22,000 Reliant Energy, Inc. 607,750
16,900 Tidewater Inc. 515,450
------------
1,123,200
------------
FINANCIAL SERVICES--3.2%
42,800 Fannie Mae 2,926,450
23,900 Federal Home Loan Mortgage
Corporation 1,386,200

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

9,500 Merrill Lynch & Co., Inc. $ 759,406
35,700 Morgan Stanley Dean Witter & Co. 3,659,250
3,200 Providian Financial Corp. 299,200
------------
9,030,506
------------
FOOD & BEVERAGE--2.5%
4,600 Anheuser-Busch Companies, Inc. 326,312
15,600 ConAgra, Inc. 415,350
6,700 Coors (Adolph) Co. Cl B 331,650
15,900 Earthgrains Company 410,419
3,100 General Mills, Inc. 249,162
10,200 Hormel Foods Corp. 410,550
34,300 IBP, Inc. 814,625
32,200 Keebler Foods Co.(1) 978,075
32,500 Quaker Oats Co. (The) 2,157,188
20,500 Suiza Foods Corp.(1) 858,438
------------
6,951,769
------------
HEALTHCARE--0.3%
10,100 Mallinckrodt Inc. 367,388
7,500 PacifiCare Health Systems, Inc.(1) 539,766
------------
907,154
------------
INDUSTRIAL EQUIPMENT &
MACHINERY--0.5%
23,000 Ingersoll-Rand Co. 1,486,375
------------
INSURANCE--2.5%
26,000 Allstate Corp. 932,750
23,300 Fidelity National Financial, Inc. 489,300
36,200 First American Financial
Corp. (The) 647,075
13,100 Gallagher (Arthur J.) & Co. 648,450
7,500 LandAmerica Financial Group, Inc. 215,625
51,200 Lincoln National Corp. 2,678,400
18,500 Loews Corp. 1,463,812
------------
7,075,412
------------
LEISURE--1.0%
5,800 Anchor Gaming(1) 278,944
13,500 Eastman Kodak Co. 914,625
5,300 King World Productions, Inc.(1) 184,506
32,700 Viacom, Inc. Cl B(1) 1,438,800
------------
2,816,875
------------
MACHINERY & EQUIPMENT--0.4%
31,700 Premark International, Inc. 1,188,750
------------
MEDICAL EQUIPMENT & SUPPLIES--1.1%
7,600 Andrx Corp.(1) 585,912
10,700 Bard (C.R.), Inc. 511,594
2,613 Genzyme Surgical Products(1) 11,514
10,100 Hillenbrand Industries, Inc. 436,825
4,300 Teleflex Inc. 186,781
18,100 VISX, Inc.(1) 1,434,991
------------
3,167,617
------------

See Notes to Financial Statements

10 1-800-345-6488

VP Balanced--Schedule of Investments
- --------------------------------------------------------------------------------
(Continued)
JUNE 30, 1999 (UNAUDITED)

Shares Value
- --------------------------------------------------------------------------------
METALS & MINING--0.1%
4,800 Alcoa Inc. $ 297,000
------------
PAPER & FOREST PRODUCTS--0.2%
2,700 Fort James Corp. 102,262
5,100 International Paper Co. 257,550
2,000 Weyerhaeuser Co. 137,500
------------
497,312
------------
PHARMACEUTICALS--3.6%
2,100 Allergan, Inc. 233,100
23,500 Bristol-Myers Squibb Co. 1,655,281
2,900 Herbalife International, Inc. Cl A 31,628
16,200 Johnson & Johnson 1,587,600
11,800 Lilly (Eli) & Co. 845,175
9,100 Medicis Pharmaceutical Corp.
Cl A(1) 230,912
7,400 Merck & Co., Inc. 547,600
5,300 Nature's Sunshine Products, Inc. 57,306
4,700 Pfizer, Inc. 515,825
5,600 Roberts Pharmaceutical Corp.(1) 135,800
53,400 Schering-Plough Corp. 2,830,200
23,700 Warner-Lambert Co. 1,644,188
------------
10,314,615
------------
PRINTING & PUBLISHING--0.5%
38,100 Deluxe Corp. 1,483,519
------------
RAILROAD--0.1%
3,100 Union Pacific Corp. 180,769
------------
RESTAURANTS--0.4%
5,600 Darden Restaurants, Inc. 122,150
14,400 Foodmaker, Inc.(1) 408,600
10,600 Tricon Global Restaurants Inc.(1) 573,725
------------
1,104,475
------------
RETAIL (APPAREL)--0.3%
11,800 AnnTaylor Stores Corp.(1) 531,000
6,000 Claire's Stores, Inc. 153,750
3,450 Gap, Inc. (The) 173,794
------------
858,544
------------
RETAIL (FOOD & DRUG)--0.6%
2,205 Albertson's, Inc. 113,695
20,400 Safeway Inc.(1) 1,009,800
16,100 Universal Corp. 457,844
------------
1,581,339
------------
RETAIL (GENERAL MERCHANDISE)--1.8%
2,900 Kohl's Corp.(1) 223,844
6,100 Neiman-Marcus Group, Inc.(1) 156,694
99,100 Wal-Mart Stores, Inc. 4,781,575
------------
5,162,113
------------
RETAIL (SPECIALTY)--1.2%
8,000 Best Buy Co., Inc.(1) 540,000
34,500 Home Depot, Inc. 2,223,094

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

14,300 Zale Corp.(1) $ 572,000
------------
3,335,094
------------
RUBBER & PLASTICS--0.1%
11,600 Tupperware Corp. 295,800
------------
TELEPHONE COMMUNICATIONS--5.3%
54,000 AT&T Corp. 3,013,875
24,700 Ameritech Corp. 1,815,450
11,800 Bell Atlantic Corp. 771,425
93,300 BellSouth Corp. 4,373,438
18,300 GTE Corp. 1,386,225
47,300 SBC Communications Inc. 2,743,400
4,000 Sprint Corp. 211,250
14,000 U S WEST, Inc. 822,500
------------
15,137,563
------------
TEXTILES & APPAREL--0.5%
14,200 Dexter Corp. (The) 579,538
5,700 Tommy Hilfiger Corp.(1) 418,950
9,500 VF Corp. 406,125
------------
1,404,613
------------
TOBACCO--0.5%
8,900 Fortune Brands, Inc. 368,238
26,200 Philip Morris Companies Inc. 1,052,912
------------
1,421,150
------------
TRANSPORTATION--0.4%
3,900 FDX Corporation(1) 211,575
13,200 Hertz Corp. Cl A 818,400
------------
1,029,975
------------
UTILITIES--1.3%
6,800 FPL Group, Inc. 371,450
24,100 LG&E Energy Corp. 506,100
19,800 Minnesota Power & Light Co. 393,525
10,100 Northeast Utilities(1) 178,644
11,300 Sempra Energy 255,662
42,600 Southern Co. 1,128,900
7,500 Texas Utilities Co. 309,375
25,250 Utilicorp United Inc. 613,891
------------
3,757,547
------------
WIRELESS COMMUNICATIONS--0.1%
6,700 Sprint PCS(1) 382,738
------------
TOTAL COMMON STOCKS 170,985,119
------------
(Cost $139,373,316)

U.S. TREASURY SECURITIES--8.8%
$2,000,000 U.S. Treasury Notes, 5.125%,
8/31/00 1,993,491
1,000,000 U.S. Treasury Notes, 6.125%,
9/30/00 1,009,020
500,000 U.S. Treasury Notes, 5.75%,
10/31/00 502,432

See Notes to Financial Statements

www.americancentury.com 11

VP Balanced--Schedule of Investments
- --------------------------------------------------------------------------------
(Continued)
JUNE 30, 1999 (UNAUDITED)

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

$4,000,000 U.S. Treasury Notes, 4.875%,
3/31/01 $ 3,960,490
1,200,000 U.S. Treasury Notes, 6.625%,
7/31/01 1,223,792
3,000,000 U.S. Treasury Notes, 7.50%,
11/15/01 3,122,674
450,000 U.S. Treasury Notes, 5.75%,
10/31/02 450,499
2,000,000 U.S. Treasury Notes, 5.625%,
2/15/06 1,965,756
1,000,000 U.S. Treasury Bonds, 12.00%,
8/15/08 1,400,272
500,000 U.S. Treasury Bonds, 9.25%,
2/15/16 651,189
1,000,000 U.S. Treasury Bonds, 9.125%,
5/15/18 1,310,524
750,000 U.S. Treasury Bonds, 8.875%,
2/15/19 965,700
2,500,000 U.S. Treasury Bonds, 7.50%,
11/15/24 2,905,450
1,500,000 U.S. Treasury Bonds, 6.50%,
11/15/26 1,556,773
500,000 U.S. Treasury Bonds, 6.375%,
8/16/27 512,207
1,400,000 U.S. Treasury Bonds, 5.25%,
11/15/28 1,239,945
------------
TOTAL U.S. TREASURY SECURITIES 24,770,214
------------
(Cost $25,273,039)

U.S. GOVERNMENT AGENCY SECURITIES--2.3%
1,500,000 FHLB, 5.50%, 8/13/01 1,492,227
1,250,000 FNMA MTN, 5.83%, 2/2/04 1,219,086
1,250,000 FNMA MTN, 5.54%, 2/5/04 1,213,008
1,000,000 FNMA MTN, 5.74%, 1/21/09 919,101
750,000 FNMA, 5.25%, 1/15/09 687,599
1,000,000 FNMA, 6.50%, 4/29/09 971,668
------------
TOTAL U.S. GOVERNMENT
AGENCY SECURITIES 6,502,689
------------
(Cost $6,750,241)

MORTGAGE-BACKED SECURITIES(3)--8.3%
867,551 FHLMC Pool #C00578, 6.50%,
1/1/28 841,368
1,209,789 FNMA Pool #248679, 5.50%,
12/1/08 1,167,178
161,000 FNMA Pool #365462, 6.50%,
11/1/11 159,089
1,106,599 FNMA Pool #313481, 7.00%,
4/1/12 1,113,061
340,039 FNMA Pool #421624, 6.00%,
4/1/13 328,939
138,759 FNMA Pool #421727, 6.00%,
4/1/13 134,229

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

$ 370,569 FNMA Pool #425391, 6.00%,
5/1/13 $ 358,473
476,352 FNMA Pool #421501, 6.50%,
6/1/13 470,524
248,467 FNMA Pool #431722, 6.50%,
6/1/13 245,427
175,149 FNMA Pool #433184, 6.50%,
6/1/13 173,006
191,030 FNMA Pool #437505, 6.00%,
7/1/13 184,795
1,490,067 FNMA Pool #433885, 6.50%,
7/1/13 1,471,837
1,449,277 FNMA Pool #412562, 6.50%,
1/1/28 1,405,370
852,655 FNMA Pool #413812, 6.50%,
1/1/28 826,823
1,062,057 FNMA Pool #411821, 7.00%,
1/1/28 1,053,879
967,718 FNMA Pool #440691, 6.50%,
11/1/28 937,869
496,614 FNMA Pool #450619, 6.00%,
12/1/28 468,249
992,029 FNMA Pool #453956, 6.00%,
12/1/28 935,369
1,089,796 FNMA Pool #454947, 6.00%,
12/1/28 1,027,551
984,621 FNMA Pool #252211, 6.00%,
1/1/29 928,383
984,039 FNMA Pool #252212, 6.50%,
1/1/29 953,688
1,232,171 FNMA Pool #485403, 6.00%,
2/1/29 1,161,795
1,054,342 FNMA Pool #485438, 6.50%,
2/1/29 1,021,821
1,356,717 GNMA Pool #002202, 7.00%,
4/20/26 1,336,622
944,675 GNMA Pool #780412, 7.50%,
8/15/26 957,740
848,589 GNMA Pool #467626, 7.00%,
2/15/28 839,808
688,663 GNMA Pool #458862, 7.50%,
2/15/28 697,457
461,830 GNMA Pool #444773, 6.50%,
3/15/28 445,952
466,859 GNMA Pool #469149, 6.50%,
3/15/28 450,808
98,432 GNMA Pool #460833, 6.50%,
5/15/28 95,048
47,158 GNMA Pool #474224, 6.50%,
5/15/28 45,537
1,156,723 GNMA Pool #469811, 7.00%,
12/15/28 1,144,753
------------
TOTAL MORTGAGE-BACKED SECURITIES 23,382,448
------------
(Cost $23,989,066)

See Notes to Financial Statements

12 1-800-345-6488

VP Balanced--Schedule of Investments
- --------------------------------------------------------------------------------
(Continued)
JUNE 30, 1999 (UNAUDITED)

Principal Amount Value
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES(3)--3.9%
$ 750,000 CIT RV Trust, Series 1998 A,
Class A4 SEQ, 6.09%,
2/15/12 $ 744,739
713,445 First Merchants Auto Receivables
Corp., Series 1996 B, Class A2,
6.80%, 5/15/01 718,186
1,416,596 First Union-Lehman Brothers
Commercial Mortgage,
Series 1998 C2, Class A1 SEQ,
6.28%, 6/18/07 1,394,235
914,335 FNMA Whole Loan, Series 1995 W1,
Class A6, 8.10%,
4/25/25 926,887
1,500,000 GMAC Commercial Mortgage
Securities Inc., Series 1999 C1,
Class A2 SEQ, 6.18%,
5/15/33 1,421,768
482,180 Nationslink Funding Corp.,
Series 1998--2, Class A1 SEQ,
6.00%, 11/20/07 468,349
1,250,000 PECO Energy Transition Trust,
Series 1999 A, Class A6 SEQ,
6.05%, 3/1/09 1,197,756
2,000,000 Union Acceptance Corp.,
Series 1996 D, Class A3,
6.30%, 1/8/04 2,002,950
1,250,000 United Companies Financial Corp.,
Home Equity Loan,
Series 1996 D1, Class A4,
6.78%, 2/15/16 1,257,456
1,000,000 United Companies Financial Corp.,
Home Equity Loan,
Series 1996 D1, Class A5,
6.92%, 10/15/18 1,008,625
------------
TOTAL ASSET-BACKED SECURITIES 11,140,951
------------
(Cost $11,297,963)

CORPORATE BONDS--15.5%
AUTOMOBILES & AUTO PARTS--0.7%
1,000,000 General Motors Corp., 7.00%,
6/15/03 1,016,047
1,000,000 Lear Corp., 7.96%, 5/15/05
(Acquired 5/13/99, Cost
$1,000,000)(4) 970,000
------------
1,986,047
------------
BANKING--1.9%
1,750,000 Corestates Capital Corp., 5.875%,
10/15/03 1,702,564
1,750,000 First Bank System Inc., 7.625%,
5/1/05 1,819,036
500,000 Fleet National Bank, 5.75%,
1/15/09 456,740
1,000,000 NationsBank Corporation, 6.875%,
2/15/05 1,007,974

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

$ 500,000 U.S. Bank NA, 5.70%, 12/15/08 $ 458,198
------------
5,444,512
------------
BROADCASTING & MEDIA--0.3%
1,000,000 British Sky Broadcasting, 6.875%,
2/23/09 942,547
------------
CHEMICALS & RESINS--0.2%
700,000 Monsanto Co., 6.60%, 12/1/28
(Acquired 12/4/98, Cost
$697,480)(4) 625,574
------------
DIVERSIFIED COMPANIES--0.2%
600,000 Hutchison Whampoa Financial,
7.50%, 8/1/27 (Acquired
4/7/99, Cost $521,154)(4) 520,311
------------
ELECTRICAL & ELECTRONIC
COMPONENTS--0.5%
1,500,000 Anixter International Inc., 8.00%,
9/15/03 1,515,063
------------
ENERGY (PRODUCTION & MARKETING)--0.5%
500,000 K N Energy, Inc., 6.45%,
11/30/01 493,113
1,000,000 USX Corp., 6.85%, 3/1/08 963,944
------------
1,457,057
------------
ENERGY (SERVICES)--0.3%
750,000 Petroleum Geo-Services ASA,
7.125%, 3/30/28 674,144
------------
FINANCIAL SERVICES--2.7%
1,500,000 Associates Corp., N.A., 6.375%,
10/15/02 1,499,158
1,000,000 Citigroup Inc., 5.80%, 3/15/04 968,837
1,525,000 Comdisco, Inc., 6.375%,
11/30/01 1,523,039
1,000,000 Ford Motor Credit Co., 6.125%,
4/28/03 985,094
750,000 Ford Motor Credit Co., 6.75%,
5/15/05 750,273
1,000,000 Money Store Inc. (The), 8.05%,
4/15/02 1,035,298
800,000 Toyota Motor Credit Corp.,
5.625%, 11/13/03 774,634
------------
7,536,333
------------
FOOD & BEVERAGE--0.3%
1,000,000 Pepsi Bottling Group Inc., 5.625%,
2/17/09 (Acquired 2/3/99,
Cost $995,670)(4) 916,030
------------
HEALTHCARE--0.4%
1,200,000 Aetna Services, Inc., 6.75%,
8/15/01 1,204,311
------------
INSURANCE--1.1%
1,000,000 Conseco Inc., 6.40%, 6/15/01 980,753
1,000,000 Nationwide Mutual Insurance Co.,
6.50%, 2/15/04 (Acquired
2/9/96, Cost $1,008,420)(4) 984,728

See Notes to Financial Statements

www.americancentury.com 13

VP Balanced--Schedule of Investments
- --------------------------------------------------------------------------------
(Continued)
JUNE 30, 1999 (UNAUDITED)

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

$1,000,000 Underwriters Reinsurance Co.,
7.875%, 6/30/06 (Acquired
8/6/96, Cost $1,031,200)(4) $ 1,022,251
------------
2,987,732
------------
MACHINERY & EQUIPMENT--0.4%
1,250,000 Caterpillar Financial Services Corp.,
5.90%, 9/10/02 1,231,798
------------
METALS & MINING--0.3%
750,000 Barrick Gold Corp., 7.50%,
5/1/07 761,820
------------
PACKAGING & CONTAINERS--0.3%
1,000,000 Owens-Illinois Inc., 7.15%,
5/15/05 954,890
------------
PAPER & FOREST PRODUCTS--0.3%
1,000,000 Abitibi-Consolidated Inc., 7.40%,
4/1/18 929,295
------------
REAL ESTATE--1.0%
1,700,000 Price REIT, Inc. (The), 7.25%,
11/1/00 1,719,282
1,200,000 Spieker Properties, Inc., 6.80%,
12/15/01 1,197,805
------------
2,917,087
------------
RETAIL (APPAREL)--0.2%
600,000 Saks Inc., 8.25%, 11/15/08 631,844
------------
RETAIL (FOOD & DRUG)--0.5%
1,000,000 Kroger Co. (The), 7.25%, 6/1/09
(Acquired 6/18/99, Cost
$999,370)(4) 1,001,297
500,000 Rite Aid Corp., 6.00%, 12/15/05
(Acquired 6/16/99, Cost
$459,005)(4) 463,648
------------
1,464,945
------------
RETAIL (GENERAL MERCHANDISE)--0.4%
1,000,000 Sears, Roebuck & Co. MTN,
7.12%, 6/4/04 1,013,086
------------
STEEL--0.3%
750,000 Pohang Iron & Steel Co., Ltd.,
6.625%, 7/1/03 718,317
------------

Principal Amount Value
- --------------------------------------------------------------------------------
TELEPHONE COMMUNICATIONS--1.6%
$1,500,000 Cable & Wireless Communications
plc, 6.625%, 3/6/05 $ 1,466,355
1,300,000 GTE North Inc., Series H, 5.65%,
11/15/08 1,195,076
750,000 MCI WorldCom, Inc., 6.95%,
8/15/28 710,666
1,000,000 Qwest Communications
International Inc., Series B,
7.50%, 11/1/08 994,561
------------
4,366,658
------------
UTILITIES--0.6%
600,000 Texas Utilities Electric Co.,
8.125%, 2/1/02 622,974
1,000,000 Yorkshire Power Finance, Series B,
6.15%, 2/25/03 (Acquired
2/19/98, Cost $1,000,000)(4) 972,523
------------
1,595,497
------------
WIRELESS COMMUNICATIONS--0.5%
1,500,000 AirTouch Communications, Inc.,
7.125%, 7/15/01 1,521,728
------------
TOTAL CORPORATE BONDS 43,916,626
------------
(Cost $44,591,599)

FORWARD COMMITMENTS--0.5%
1,500,000 FNMA Purchase, 7.50%,
settlement 7/14/99 1,518,282
------------
(Cost $1,507,969)

TEMPORARY CASH INVESTMENTS--0.3%
Repurchase Agreement, Morgan Stanley Group,
Inc., (U.S. Treasury obligations), in a joint
trading account at 4.72%, dated 6/30/99,
due 7/1/99 (Delivery value $800,105) 800,000
------------
(Cost $800,000)

TOTAL INVESTMENT SECURITIES--100.0% $283,016,329
============
(Cost $253,583,193)

NOTES TO SCHEDULE OF INVESTMENTS

FHLB = Federal Home Loan Bank

FHLMC = Federal Home Loan Mortgage Corporation

FNMA = Federal National Mortgage Association

GNMA = Government National Mortgage Association

MTN = Medium Term Note

(1) Non-income producing.

(2) Securities, or a portion thereof, have been segregated at the custodian
bank for Forward Commitments.

(3) Final maturity indicated. Expected remaining maturity used for purposes of
calculating the weighted average portfolio maturity.

(4) 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, 1999, was $7,476,362, which represented
2.6% of net assets.

See Notes to Financial Statements

14 1-800-345-6488

Statement of Assets and Liabilities
- --------------------------------------------------------------------------------

JUNE 30, 1999 (UNAUDITED)

ASSETS
Investment securities, at value
(identified cost of $253,583,193)
(Note 3) ................................................ $283,016,329
Cash ...................................................... 2,188,516
Receivable for investments sold ........................... 1,921,236
Dividends and interest receivable ......................... 1,538,548
------------
288,664,629
------------

LIABILITIES
Payable for investments purchased ......................... 3,172,370
Accrued management fees (Note 2) .......................... 204,456
Payable for directors' fees and expenses .................. 460
------------
3,377,286
------------
Net Assets ................................................ $285,287,343
============

CAPITAL SHARES,
$0.01 PAR VALUE
Authorized ................................................ 200,000,000
============
Outstanding ............................................... 38,729,747
============

Net Asset Value Per Share ................................. $ 7.37
============

NET ASSETS CONSIST OF:
Capital (par value and paid-in surplus) ................... $249,328,092
Undistributed net investment income ....................... 3,466,301
Accumulated undistributed net realized
gain on investments ..................................... 3,059,814
Net unrealized appreciation on
investments (Note 3) .................................... 29,433,136
------------
$285,287,343
============

See Notes to Financial Statements

www.americancentury.com 15

Statement of Operations
- --------------------------------------------------------------------------------

FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)

INVESTMENT INCOME
Income:
Interest .................................................. $ 3,474,272
Dividends ................................................. 1,269,800
-----------
4,744,072
-----------
Expenses (Note 2):
Management fees ........................................... 1,252,259
Directors' fees and expenses .............................. 1,482
-----------
1,253,741
-----------
Net investment income ..................................... 3,490,331
-----------

REALIZED AND UNREALIZED
GAIN ON INVESTMENTS (NOTE 3)
Net realized gain on investments .......................... 3,787,798
Change in net unrealized appreciation
on investments .......................................... 3,846,908
-----------

Net realized and unrealized
gain on investments ..................................... 7,634,706
-----------

Net Increase in Net Assets
Resulting from Operations ............................... $11,125,037
===========

See Notes to Financial Statements

16 1-800-345-6488

Statements of Changes in Net Assets
- --------------------------------------------------------------------------------

SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED) AND YEAR ENDED DECEMBER 31, 1998

Increase in Net Assets 1999 1998

OPERATIONS
Net investment income ...................... $ 3,490,331 $ 5,384,061
Net realized gain on investments ........... 3,787,798 37,379,163
Change in net unrealized
appreciation on investments .............. 3,846,908 (5,946,383)
------------- -------------
Net increase in net assets
resulting from operations ............... 11,125,037 36,816,841
------------- -------------

DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ................. (5,391,422) (4,070,492)
From net realized gains on
investment transactions .................. (37,200,821) (25,240,781)
------------- -------------
Decrease in net assets
from distributions ....................... (42,592,243) (29,311,273)
------------- -------------

CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold .................. 15,915,861 86,669,711
Proceeds from reinvestment
of distributions ......................... 42,592,243 29,311,273
Payments for shares redeemed ............... (22,190,375) (62,136,967)
------------- -------------
Net increase in net assets from
capital share transactions ............... 36,317,729 53,844,017
------------- -------------
Net increase in net assets ................. 4,850,523 61,349,585

NET ASSETS
Beginning of period ........................ 280,436,820 219,087,235
------------- -------------
End of period .............................. $ 285,287,343 $ 280,436,820
============= =============
Undistributed net investment income ........ $ 3,466,301 $ 5,367,392
============= =============

TRANSACTIONS IN
SHARES OF THE FUND
Sold ....................................... 2,049,089 10,866,022
Issued in reinvestment of distributions .... 6,007,368 3,831,539
Redeemed ................................... (2,932,995) (7,676,450)
------------- -------------
Net increase ............................... 5,123,462 7,021,111
============= =============

See Notes to Financial Statements

www.americancentury.com 17

Notes to Financial Statements
- --------------------------------------------------------------------------------

JUNE 30, 1999 (UNAUDITED)

- --------------------------------------------------------------------------------
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION -- American Century Variable Portfolios, Inc., (the
corporation) is registered under the Investment Company Act of 1940 as an
open-end diversified management investment company. VP Balanced Fund (the fund)
is one of the six 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 investing approximately 60% of the fund's 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 are in
accordance with generally accepted accounting principles; these principles may
require the use of estimates by fund management.

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 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.

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.

ADDITIONAL INFORMATION -- Funds Distributor, Inc. (FDI) is the corporation's
distributor. Certain officers of FDI are also officers of the corporation.

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

The annualized fee schedule for the fund is as follows:

0.90% on the first $250 million
0.85% on the next $250 million
0.80% thereafter

18 1-800-345-6488

Notes to Financial Statements
- --------------------------------------------------------------------------------
(Continued)
JUNE 30, 1999 (UNAUDITED)

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

Purchases of investment securities, excluding short-term investments,
totaled $128,775,828, including purchases of U.S. Treasury and Agency
obligations totaling $37,682,802. Sales of investment securities, excluding
short-term investments, totaled $133,394,892, including sales of U.S. Treasury
and Agency obligations totaling $27,431,273.

As of June 30, 1999, accumulated net unrealized appreciation was
$28,747,096, based on the aggregate cost of investments for federal income tax
purposes of $254,269,233, which consisted of unrealized appreciation of
$35,187,771 and unrealized depreciation of $6,440,675.

- --------------------------------------------------------------------------------
4. BANK LOANS

- --------------------------------------------------------------------------------
5. FUND EVENTS

The following name change became effective March 1, 1999:

==================================================================
NEW NAME FORMER NAME
==================================================================

FUND: VP Balanced Fund American Century VP Balanced

www.americancentury.com 19

VP Balanced--Financial Highlights
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED DECEMBER 31 (EXCEPT AS NOTED)

1999(1) 1998 1997 1996 1995 1994
PER-SHARE DATA
Net Asset Value,
<S> <C> <C> <C> <C> <C> <C>
Beginning of Period ............... $ 8.34 $ 8.24 $ 7.54 $ 7.04 $ 5.96 $ 6.07
----------- ----------- ----------- ----------- ----------- -----------
Income From Investment Operations
Net Investment Income ............. 0.09 0.16 0.19 0.18 0.17 0.15
Net Realized and Unrealized
Gain (Loss) on Investment
Transactions ...................... 0.20 1.04 0.94 0.65 1.08 (0.11)
----------- ----------- ----------- ----------- ----------- -----------
Total From Investment Operations .. 0.29 1.20 1.13 0.83 1.25 0.04
----------- ----------- ----------- ----------- ----------- -----------
Distributions
From Net Investment Income ........ (0.16) (0.15) (0.09) (0.13) (0.17) (0.15)
From Net Realized Gains on
Investment Transactions ........... (1.10) (0.95) (0.34) (0.20) -- --
----------- ----------- ----------- ----------- ----------- -----------
Total Distributions ............... (1.26) (1.10) (0.43) (0.33) (0.17) (0.15)
----------- ----------- ----------- ----------- ----------- -----------
Net Asset Value, End of Period ...... $ 7.37 $ 8.34 $ 8.24 $ 7.54 $ 7.04 $ 5.96
=========== =========== =========== =========== =========== ===========
Total Return(2) ................... 4.12% 15.77% 15.81% 12.21% 21.12% 0.61%

RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets ............. 0.90%(3) 0.97%(4) 1.00% 0.99% 0.97% 1.00%
Ratio of Net Investment Income
to Average Net Assets ............. 2.49%(3) 2.16%(4) 2.19% 2.43% 2.69% 2.49%
Portfolio Turnover Rate ............. 46% 158% 125% 130% 87% 63%
Net Assets, End of Period
(in thousands) .................... $ 285,287 $ 280,437 $ 219,087 $ 215,393 $ 153,823 $ 105,100
</TABLE>

(1) Six months ended June 30, 1999 (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) ACIM voluntarily waived a portion of its management fee from October 1,
1998 through November 16, 1998. In absence of the waiver, the annualized
ratio of operating expenses to average net assets and annualized ratio of
net investment income to average net assets would have been 0.99% and
2.15%, respectively, for the year ended December 31, 1998.

See Notes to Financial Statements

20 1-800-345-6488

Background Information
- --------------------------------------------------------------------------------

INVESTMENT TEAM LEADERS

Equity Portfolio
JOHN SCHNIEDWIND
JEFF TYLER

Fixed-Income Portfolio
JEFF HOUSTON
JOHN WALSH

Credit Research
GREG AFIESH

INVESTMENT PHILOSOPHY AND POLICIES

AMERICAN CENTURY VP BALANCED seeks capital growth and current income. The
fund keeps about 60% of its assets in a diversified portfolio of common stocks.
Under normal market conditions, the remaining assets are held in Treasury,
mortgage-backed, and corporate bonds.

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 the potential for gain.

For the equity portfolio, the goal is to achieve a total return that exceeds
that of the S&P 500. The portfolio is managed using computer models as key tools
in making investment decisions. One model ranks stocks based on their expected
return, using both growth and value measures such as cash flow, earnings growth,
and price/earnings ratio. Another model creates a portfolio that balances
high-ranking stocks with an overall risk level that is comparable to the S&P
500.

The fixed-income portfolio is also index based. The management team attempts
to add value by making modest portfolio adjustments based on its analysis of
prevailing market conditions. The team typically seeks to slightly overweight
relatively undervalued, higher-yielding sectors of the market.

COMPARATIVE INDICES

The indices listed below are used in the report for fund performance
comparisons. 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
approximately 60% of the fund's assets invested in equity securities. The
remaining 40% of the index is represented by the Lehman Brothers Aggregate Bond
Index, which reflects the roughly 40% of the fund's assets invested in
fixed-income securities.

The "OLD" BLENDED INDEX was the benchmark for VP Balanced until January 1,
1999. It is identical to the current blended index except that the Lehman
Brothers Intermediate Government/Corporate Bond Index represents the roughly 40%
of the fund's assets invested in fixed-income securities instead of the Lehman
Brothers Aggregate Bond Index.

The LEHMAN BROTHERS AGGREGATE BOND INDEX is composed of the Lehman Brothers
Government/ Corporate Index and the Lehman Brothers Mortgage-Backed Securities
Index. It reflects the price fluctuations of Treasury securities, U.S.
government agency securities, corporate bond issues, and mortgage-backed
securities.

The LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND INDEX is
considered to represent the performance of a portfolio of intermediate-term U.S.
government and corporate bonds. The index includes the Lehman Brothers
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.

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 dominant
industries. Created by Standard & Poor's Corporation, the index is viewed as a
broad measure of U.S. stock market performance.

www.americancentury.com 21

Glossary
- --------------------------------------------------------------------------------

FIXED-INCOME TERMS

* ASSET-BACKED SECURITIES -- debt securities that represent ownership in a pool
of receivables, such as credit-card debt, auto loans, and commercial mortgages.

* CORPORATE BONDS -- debt securities or instruments issued by companies and
corporations.

* DURATION is a measure of the sensitivity of a fixed-income portfolio to
interest rate changes. It is a time-weighted average of the interest and
principal payments of the securities in a portfolio. As the duration of a
portfolio increases, the impact of a change in interest rates on the value of
the portfolio also increases.

* MORTGAGE-BACKED SECURITIES -- debt securities that represent ownership in
pools of mortgage loans.

* U.S. TREASURY SECURITIES -- debt securities issued by the U.S. Treasury and
backed by the direct "full faith and credit" pledge of the U.S. government.

* WEIGHTED AVERAGE MATURITY (WAM) is another measurement of the sensitivity of a
fixed-income portfolio to interest rate changes. WAM indicates the average time
until the securities in the portfolio mature, 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 fiscal year-by-year total returns, please refer to the "Financial
Highlights" on page 20.

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.

* COMMON STOCKS --units of ownership of a public corporation.

* CYCLICAL STOCKS -- generally considered to be stocks whose price and earnings
fluctuations tend to follow the ups and downs of the business cycle.

* GROWTH STOCKS -- generally considered to be the stocks of companies that have
experienced above-average earnings growth and appear likely to continue such
growth.

* VALUE STOCKS -- generally considered to be stocks that are relatively
inexpensive.

* LARGE-CAPITALIZATION ("LARGE-CAP") STOCKS -- these tend to be the stocks that
make up the Dow Jones Industrial Average and the S&P 500.

* MEDIUM-CAPITALIZATION ("MID-CAP") STOCKS -- these tend to be the stocks that
make up the S&P MidCap 400.

* SMALL-CAPITALIZATION (SMALL-CAP) STOCKS -- these tend to be the stocks that
make up the S&P SmallCap 600.

22 1-800-345-6488

Glossary
- --------------------------------------------------------------------------------
(Continued)

FUND CLASSIFICATIONS

INVESTMENT OBJECTIVE

* CAPITAL PRESERVATION -- offers taxable and tax-free money market funds for
relative stability of principal and liquidity.

* INCOME -- offers funds that can provide current income and competitive yields,
as well as a strong and stable foundation and generally lower volatility levels
than stock funds.

* GROWTH & INCOME -- offers funds that emphasize both growth and income,
provided by either dividend-paying equities or a combination of equity and
fixed-income securities.

* GROWTH -- offers funds with a focus on capital appreciation and long-term
growth, generally providing high return potential with corresponding high price
fluctuation risk.

RISK

The classification of funds by risk category is based on quantitative
historical measures as well as qualitative prospective measures. It is not
intended to be a precise indicator of future risk or return levels. The degree
of risk within each category can vary significantly, and some fund returns have
historically been higher than more aggressive funds or lower than more
conservative funds. Please be aware that the fund's category may change over
time. Therefore, it is important that you read a fund's prospectus or fund
profile carefully before investing to ensure its objectives, policies, and risk
potential are consistent with your needs.

* CONSERVATIVE -- these funds generally provide lower return potential with
either low or minimal price fluctuation risk.

* MODERATE -- these funds generally provide moderate return potential with
moderate price fluctuation risk.

* AGGRESSIVE -- these funds generally provide high return potential with
corresponding high price fluctuation risk.

CREDIT RATING GUIDELINES

Credit ratings are issued by independent research companies such as Standard
& Poor's and Moody's. They are based on an issuer's financial strength and
ability to pay interest and principal in a timely manner.

Securities rated AAA, AA, A, or BBB are considered "investment-grade"
securities, meaning they are relatively safe from default. Securities rated BB
or below are considered to have more speculative characteristics.

It's important to note that credit ratings are subjective, reflecting the
opinions of the rating agencies; they are not absolute standards of quality.

www.americancentury.com 23

Notes
- --------------------------------------------------------------------------------

24 1-800-345-6488

[inside back cover]

===============================================================================
INVESTMENT OBJECTIVE - CAPITAL PRESERVATION
===============================================================================

RISK LEVEL - CONSERVATIVE

TAXABLE MONEY MARKETS TAX-FREE MONEY MARKETS

Premium Capital Reserve FL Municipal Money Market
Prime Money Market CA Municipal Money Market
Premium Government Reserve CA Tax-Free Money Market
Government Agency Tax-Free Money Market
Money Market
Capital Preservation

===============================================================================
INVESTMENT OBJECTIVE - INCOME
===============================================================================

RISK LEVEL - AGGRESSIVE

TAXABLE BONDS TAX-FREE BONDS

Target 2025* CA High-Yield Municipal
Target 2020* High-Yield Municipal
Target 2015*
Target 2010*
High-Yield
International Bond

RISK LEVEL - MODERATE

TAXABLE BONDS TAX-FREE BONDS

Long-Term Treasury CA Long-Term Tax-Free
Target 2005* Long-Term Tax-Free
Bond CA Insured Tax-Free
Premium Bond

RISK LEVEL - CONSERVATIVE

TAXABLE BONDS TAX-FREE BONDS

Intermediate-Term Bond CA Intermediate-Term Tax-Free
Intermediate-Term Treasury AZ Intermediate-Term Municipal
GNMA FL Intermediate-Term Municipal
Inflation-Adjusted Treasury Intermediate-Term Tax-Free
Limited-Term Bond CA Limited-Term Tax-Free
Target 2000* Limited-Term Tax-Free
Short-Term Government
Short-Term Treasury

===============================================================================
INVESTMENT OBJECTIVE - GROWTH AND INCOME
===============================================================================

RISK LEVEL - AGGRESSIVE

DOMESTIC EQUITY

Small Cap Quantitative
Small Cap Value

RISK LEVEL - MODERATE

ASSET ALLOCATION/BALANCED DOMESTIC EQUITY SPECIALTY

Strategic Allocation -- Equity Growth Utilities
Aggressive Equity Index Real Estate
Balanced Tax-Managed Value
Strategic Allocation -- Income & Growth
Moderate Value
Strategic Allocation -- Equity Income
Conservative

===============================================================================
INVESTMENT OBJECTIVE - GROWTH
===============================================================================

RISK LEVEL - AGGRESSIVE

DOMESTIC EQUITY SPECIALTY INTERNATIONAL

New Opportunities Global Gold Emerging Markets
Giftrust(reg.tm) International Discovery
Vista International Growth
Heritage Global Growth
Growth
Ultra(reg.tm)
Select

RISK LEVEL - MODERATE

SPECIALTY

Global Natural Resources

The investment objective may be based on the fund's objective as stated in its
prospectus or fund profile, or the fund's categorization by independent rating
organizations based on its management style.

The classification of funds by risk category is based on quantitative historical
measures as well as qualitative prospective measures. It is not intended to be a
precise indicator of future risk or return levels. The degree of risk within
each category can vary significantly, and some fund returns have historically
been higher than more aggressive funds or lower than more conservative funds.
Please be aware that a fund's category may change over time. Therefore, it is
important that you read a fund's prospectus or fund profile carefully before
investing to ensure its objectives, policies and risk potential are consistent
with your needs.

For a definition of fund categories, see the Glossary.

[back cover]

[american century logo(reg.sm)]
American
Century

P.O. BOX 419385
KANSAS CITY, MISSOURI 64141-6385

WWW.AMERICANCENTURY.COM

INVESTOR RELATIONS
1-800-345-6488

AUTOMATED INFORMATION LINE
1-800-345-8765

FAX: 816-340-4360

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-345-1833

AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.

INVESTMENT MANAGER
AMERICAN CENTURY INVESTMENT MANAGEMENT, INC.
KANSAS CITY, MISSOURI

9908 Funds Distributor, Inc.
SH-SAN-17130 (c)1999 American Century Services Corporation
<PAGE>
[front cover]
JUNE 30, 1999

SEMIANNUAL REPORT
- -----------------
AMERICAN CENTURY
VARIABLE PORTFOLIOS

[graphic of stairs]

- -----------------------
VP ADVANTAGE

[american century logo(reg.sm)]
American
Century

[inside front cover]

[left margin]

VARIABLE PORTFOLIOS
VP ADVANTAGE
- -------------------

During the six months ended June 30, 1999, we witnessed a surprising
turnaround in the U.S. economic outlook. When we last addressed you in the
annual report for American Century VP Advantage, the Federal Reserve (the U.S.
central bank) had recently cut short-term interest rates to bolster the U.S.
economy and help stabilize markets worldwide.

In March and April of this year, we participated in the Security Industry
Association's (SIA) industry-wide test and successfully processed transactions
for dates up to and beyond 2000. We also participated in the Market Data Test
conducted by the SIA and Financial Information Forum in May. Again, the computer
scripts were executed successfully with no Y2K-related errors.

As always, we appreciate your continued confidence in American Century.

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 Vice Chairman of the Board and
Chief Executive Officer

[right margin]

Table of Contents
Report Highlights ....................................................... 2
Market Perspective ...................................................... 3
VP ADVANTAGE
Performance Information ................................................. 5
Management Q&A .......................................................... 6
Types of Investments .................................................... 6
Top Ten Stock Holdings .................................................. 7
Top Five Stock Industries ............................................... 7
Fixed-Income Portfolio .................................................. 8
Schedule of Investments ................................................. 9
FINANCIAL STATEMENTS
Statement of Assets and
Liabilities .......................................................... 11
Statement of Operations ................................................. 12
Statements of Changes
in Net Assets ........................................................ 13
Notes to Financial
Statements ........................................................... 14
Financial Highlights .................................................... 16
OTHER INFORMATION
Background Information
Investment Team
Leaders ........................................................... 17
Investment Philosophy
and Policies ...................................................... 17
Comparative Indices .................................................. 17
Credit Rating
Guidelines ........................................................ 17
Glossary ................................................................ 18

* This letter includes a Year 2000 Readiness Disclosure.

www.americancentury.com 1

Report Highlights
- --------------------------------------------------------------------------------

MARKET PERSPECTIVE

* U.S. stock and bond markets diverged during the six months ended June 30,
1999. In general, stocks rallied while bonds declined.

* Three short-term interest rate cuts by the Federal Reserve (the Fed) in late
1998 helped bolster the U.S. economy and investor confidence, lending
strength to stocks.

* Large-capitalization stock indices such as the Dow Jones Industrial Average
and the S&P 500 continued to post better returns than smaller-cap indices,
but the performance gap between larger- and smaller-company stocks narrowed
significantly. Even the beleaguered small-cap stock indices posted
respectable returns.

* Value stocks generally outperformed growth stocks for the first six months
of 1999, reversing another recent trend.

* Cyclical stocks staged a comeback as investors regained faith in the
strength of the global economy. High-tech and pharmaceutical stocks fell
somewhat out of favor.

* Strong U.S. economic growth and rising interest rates resulted in low
returns for most bonds, especially Treasury securities.

MANAGEMENT Q&A

* VP Advantage's return for the six months ended June 30 reflected the
strength of the stock market and the relative weakness of bonds.

* The equity portfolio didn't quite match the pace of the S&P 500,
particularly in the second quarter.

* VP Advantage's underweighted position in cyclical stocks and overweighted
positions in high tech and pharmaceuticals caused the equity portfolio to
trail the index in the second quarter after keeping pace earlier in the
year.

* We added to our high-tech holdings and trimmed the pharmaceuticals, based on
earnings results and our economic outlook.

* Strong economic growth and rising interest rates dampened the fixed-income
portfolio's returns.

* The fixed-income portfolio's performance would have been worse if we hadn't
held cash, reduced the portfolio's interest rate sensitivity, and maintained
a position in mortgage-backed securities.

* Mortgage-backed securities outperformed most other bond sectors during the
period.

[left margin]

VP ADVANTAGE
TOTAL RETURNS: AS OF 6/30/99
6 Months 3.76%*
1 Year 10.11%
INCEPTION DATE: 8/1/91
NET ASSETS: $23.3 million

* Not annualized.

Investment terms are defined in the Glossary on pages 18-19.

2 1-800-345-6488

STOCKS AND BONDS DIVERGE

This divergence in stock and bond performance is displayed dramatically in
the returns for the S&P 500 and the Lehman Brothers Intermediate Government Bond
Index (at right). The blended index shows how a 40% S&P 500/40% Lehman
Intermediate Government Bond/20% Treasury bill combination would have performed.

RECALLING THE GLOOMY OUTLOOK

THE TURNAROUND

[right margin]

"A RESILIENT U.S. ECONOMY, STRONG CORPORATE EARNINGS, AND REVITALIZED INVESTOR
CONFIDENCE SPURRED A U.S. STOCK MARKET REBOUND WHILE DAMPENING DOMESTIC BOND
RETURNS."

MARKET RETURNS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
S&P 500 12.23%
BLENDED INDEX 5.22%
LEHMAN BROS. INTERMEDIATE
GOVERNMENT BOND INDEX -0.47%
90-DAY T-BILL 2.24%

Source: Lipper Inc.

[line graph - data below]

MARKET PERFORMANCE (GROWTH OF $1.00)
FOR THE SIX MONTHS ENDED JUNE 30, 1999

S&P 500 Lehman Int. Govt. Blended Index 90-Day T-Bill
12/31/1998 $1.00 $1.00 $1.00 $1.00
1/31/1999 $1.04 $1.00 $1.02 $1.00
2/28/1999 $1.01 $0.99 $1.00 $1.01
3/31/1999 $1.05 $1.00 $1.02 $1.01
4/30/1999 $1.09 $1.00 $1.04 $1.01
5/31/1999 $1.06 $0.99 $1.03 $1.02
6/30/1999 $1.12 $1.00 $1.05 $1.02

Source: Lipper Inc.

These indices are defined on page 17.

www.americancentury.com 3

Market Perspective from Mark Mallon
- --------------------------------------------------------------------------------
(Continued)

STOCK RETURNS -- SIZE MATTERED LESS

BOND PERFORMANCE -- INFLATION FEARS RETURNED

A bond version of sector rotation began in January. By early 1999, bond
investors seemed to sense that the gloomiest economic predictions were not
coming true, and they became more interested in higher yields than in safety and
liquidity. Bondholders began selling Treasurys and buying higher-yielding bonds
such as corporate and mortgage-backed securities.

As a result of all these factors, corporates and mortgage-backeds
outperformed Treasurys for the first six months of 1999 when Treasury yields
jumped significantly, as shown in the accompanying yield curve graph. The
benchmark 30-year Treasury bond yield climbed above 6% for the first time in a
year and a half. The accompanying return table shows that only the shortest
maturity Treasurys achieved positive performance for the period.

[left margin]

"ONLY THE SHORTEST MATURITY TREASURYS ACHIEVED POSITIVE PERFORMANCE FOR THE
PERIOD."

[line graph - data below]

RISING TREASURY YIELD CURVE

Source: Bloomberg Financial Markets

TREASURY RETURNS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
LEHMAN TREASURY BOND INDEX -2.50%
1-YEAR TREASURY BILL 2.05%
2-YEAR TREASURY NOTE 1.19%
5-YEAR TREASURY NOTE -1.90%
10-YEAR TREASURY NOTE -5.69%
30-YEAR TREASURY BOND -9.37%

Source: Bloomberg Financial Markets

4 1-800-345-6488

VP Advantage--Performance
- --------------------------------------------------------------------------------

TOTAL RETURNS AS OF JUNE 30, 1999

<TABLE>
VP BLENDED LEHMAN INT. 90-DAY
ADVANTAGE INDEX S&P 500 GOVT. INDEX T-BILL INDEX
================================================================================
<S> <C> <C> <C> <C> <C>
6 MONTHS(1) 3.76% 5.22% 12.23% -0.47% 2.24%
1 YEAR 10.11% 11.80% 22.75% 4.43% 4.58%
================================================================================
AVERAGE ANNUAL RETURNS
3 YEARS 13.02% 15.27% 29.00% 6.57% 4.97%
5 YEARS 12.43% 14.92% 27.81% 6.87% 5.11%
LIFE OF FUND(2) 9.62% 11.75% 20.14% 7.00% 4.54%
</TABLE>

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

(1) Returns for periods less than one year are not annualized.

See pages 17-18 for information about the blended index and returns.

[mountain graph - data below]

GROWTH OF $10,000 OVER LIFE OF FUND
Value on 6/30/99
S&P 500 $42,702
Blended Index $24,147
VP Advantage $20,688
Lehman Int. Govt. Index $17,096

VP Lehman Blended
Advantage S&P 500 Int. Govt. Index
DATE VALUE VALUE VALUE VALUE
8/1/1991 $10,000 $10,000 $10,000 $10,000
9/30/1991 $10,174 $10,066 $10,363 $10,189
12/31/1991 $11,381 $10,910 $10,862 $10,750
3/31/1992 $10,804 $10,634 $10,748 $10,617
6/30/1992 $10,571 $10,836 $11,165 $10,881
9/30/1992 $10,773 $11,177 $11,655 $11,226
12/31/1992 $10,953 $11,740 $11,616 $11,455
3/31/1993 $11,126 $12,253 $12,051 $11,844
6/30/1993 $11,350 $12,313 $12,287 $11,978
9/30/1993 $11,720 $12,631 $12,546 $12,221
12/31/1993 $11,702 $12,924 $12,565 $12,360
3/31/1994 $11,716 $12,434 $12,332 $12,102
6/30/1994 $11,520 $12,486 $12,263 $12,119
9/30/1994 $11,789 $13,097 $12,358 $12,420
12/31/1994 $11,824 $13,094 $12,345 $12,448
3/31/1995 $12,192 $14,370 $12,859 $13,176
6/30/1995 $12,985 $15,742 $13,459 $13,963
9/30/1995 $13,512 $16,994 $13,668 $14,531
12/31/1995 $13,805 $18,017 $14,125 $15,114
3/31/1996 $13,983 $18,984 $14,028 $15,434
6/30/1996 $14,324 $19,836 $14,122 $15,792
9/30/1996 $14,649 $20,449 $14,365 $16,136
12/31/1996 $15,082 $22,153 $14,697 $16,864
3/31/1997 $14,798 $22,747 $14,694 $17,087
6/30/1997 $16,087 $26,720 $15,104 $18,515
9/30/1997 $16,938 $28,719 $15,491 $19,306
12/31/1997 $17,016 $29,543 $15,833 $19,748
3/31/1998 $18,016 $33,665 $16,072 $21,020
6/30/1998 $18,793 $34,775 $16,370 $21,505
9/30/1998 $18,131 $31,315 $17,134 $21,103
12/31/1998 $19,941 $37,985 $17,177 $22,966
3/31/1999 $20,595 $39,881 $17,131 $23,451
6/30/1999 $20,688 $42,702 $17,096 $24,147

$10,000 investment made 8/1/91

The graph at left shows the growth of a $10,000 investment over the life of the
fund, while the graph below shows the fund's year-by-year performance. The
blended index is provided for comparison in each graph, while the Lehman
Intermediate Government Index is provided for comparison in the graph at left.
VP Advantage's total returns include operating expenses (such as transaction
costs and management fees) that reduce returns, while the total returns of the
indices do not. 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.

[bar graph - data below]

ONE-YEAR RETURNS OVER LIFE OF FUND (PERIODS ENDED JUNE 30)

VP Advantage Blended Index
DATE RETURN RETURN
6/30/1992* 5.71% 8.79%
6/30/1993 7.37% 10.07%
6/30/1994 1.49% 1.16%
6/30/1995 12.71% 15.39%
6/30/1996 10.32% 13.42%
6/30/1997 12.31% 17.68%
6/30/1998 16.81% 16.45%
6/30/1999 10.11% 11.80%

* From 8/1/91 (the fund's inception date) to 6/30/92.

www.americancentury.com 5

VP Advantage--Q&A
- --------------------------------------------------------------------------------
/photo of John Sykora, Jim Stowers III, Bruce Wimberly/
/photo of John Walsh/

Equity team: John Sykora, Jim Stowers III, Bruce Wimberly
Fixed-income team: John Walsh (pictured), Jeff Houston

Based on interviews with VP Advantage's equity team and John Walsh from the
fixed-income team. John, who has been with American Century since 1996, joined
the fund's fixed-income team in January 1999, replacing Bud Hoops, who still
oversees American Century's entire corporate securities team.

HOW DID THE FUND PERFORM FOR THE SIX MONTHS ENDED JUNE 30?

VP Advantage's domestic portfolio of approximately 40% stocks, 40% bonds,
and 20% money market securities returned 3.76%. This gain reflected the blended
returns of the fund's three core portfolios. VP Advantage's stock, bond, and
money market holdings returned approximately 9.66%, -1.13%, and 1.56%,
respectively.

VP Advantage's benchmark (a blended index that combines the S&P 500, the
Lehman Intermediate Government Bond Index, and a 90-day Treasury-bill index in
the same 40/40/20 proportions as the asset mix of the portfolio) returned 5.22%.
This reflected the combined returns of the S&P 500, the Lehman index, and the
Treasury-bill index, which were 12.23%, -0.47%, and 2.24%, respectively.

WHAT CAUSED THE RETURN DIFFERENTIAL BETWEEN THE FUND AND THE BLENDED INDEX?

The main reason was the performance of VP Advantage's stock portfolio
versus its benchmark, the S&P 500, during the second quarter of 1999. The
portfolio performed well during the first quarter, but struggled later, falling
behind the benchmark.

In the first quarter, the S&P 500's performance continued to be dominated
by a small group of large-company growth stocks. VP Advantage owned many of
these stocks too, so its equity holdings kept pace with the index. But in the
second quarter, when cyclical stocks rallied and many high tech and
pharmaceutical stocks slumped, fund performance suffered. High tech and
pharmaceuticals represented two of the fund's largest positions. The fund was
light on cyclicals, such as energy, chemical, and metals stocks.

Energy and basic materials stocks were the beneficiaries of stronger global
economic growth and a move toward undervalued sectors of the market. They
weren't represented in VP Advantage's portfolio because they didn't meet the
fund's strict requirements for sustainable, accelerating earnings growth.

[left margin]

"WE CURRENTLY INTEND FOR VP ADVANTAGE TO CONTINUE TO FULFILL ITS ROLE AS A
MODERATE-RISK FUND FOR INVESTORS WHO WANT BOTH INCOME AND GROWTH."

[pie charts - data below]

TYPES OF INVESTMENTS
IN THE PORTFOLIO

AS OF JUNE 30, 1999
Common Stocks 41%
U.S. Treasury
Securities 36%
Cash 19%
Mortgage-Backed
Securities 3%
U.S. Govt. Agency
Securities 1%

AS OF DECEMBER 31, 1998
Common Stocks 38%
U.S. Treasury
Securities 38%
Cash 21%
Mortgage-Backed
Securities 2%
U.S. Govt. Agency
Securities 1%

Security types are defined on page 18.

6 1-800-345-6488

VP Advantage--Q&A
- --------------------------------------------------------------------------------
(Continued)

TELL US MORE ABOUT YOUR HIGH-TECH HOLDINGS. WHY DID YOU ADD TO THEM?

We believe that continued strong economic growth in the U.S. and improving
economic conditions overseas will help create strong demand for computers,
computer-related products, and other forms of electronic equipment.

Furthermore, we think many corporate electronic purchases have been delayed
until after Y2K has been cleared up. We believe that pent-up demand next year
could boost the performance of many high-tech firms.

Therefore, we built up our positions in computer software and services,
electrical and electronic components, and computer peripherals. In computer
software and services, we increased our holdings from three to seven companies.
We cut Compuware and added Computer Associates, First Data, Oracle, Rational
Software, and Unisys.

In electrical and electronic components, we increased the number of
holdings from one to five, adding Uniphase, Linear Technology, Texas
Instruments, and Xilinx. In computer peripherals, the big name was Cisco
Systems, the computer networking company. We more than doubled our Cisco
position, making it the fund's number one holding as of June 30.

WHY DID YOU REDUCE THE FUND'S POSITION IN PHARMACEUTICALS?

Changing economic conditions took much of the wind out of drug stocks.
Pharmaceutical shares attract assets during periods--like 1998--when the economy
looks like it might slow down. Drug stocks tend to offer steady earnings, even
when the economy falters.

As it became clearer in 1999 that the U.S. economy was strong and global
economic conditions were improving, investors stopped being so concerned about
safety, and started looking again for stocks with more sizzle.

As a result, pharmaceutical stocks were hit pretty hard during the second
quarter. With other companies and industries offering more attractive growth
prospects, we trimmed our stake in pharmaceuticals.

SPEAKING OF STRUGGLING SECTORS, WHAT WERE THE PRIMARY FACTORS THAT AFFECTED THE
PERFORMANCE OF THE FIXED-INCOME PORTFOLIO?

Though economic strength and rising interest rates resulted in generally
low bond returns, we did benefit from three factors:

1. our large cash position,

2. a reduction in the bond portfolio's sensitivity to interest rate
changes, and

3. our mortgage-backed securities holdings.

The cash position helped us because as interest rates rose, cash
outperformed most bonds. We also reduced the portfolio's sensitivity to interest
rate changes by cutting its duration and weighted average maturity. Lower
interest rate sensitivity meant less negative impact from rising rates.

Our mortgage-backed position proved helpful because mortgage-backed
securities outperformed most other types of bonds during the period. Rising
rates meant less risk that mortgages would be refinanced. Refinancings, though
good for homeowners, are bad for investors because they reduce the life of
mortgage investments.

[right margin]

TOP TEN STOCK HOLDINGS
% OF EQUITY PORTFOLIO
AS OF AS OF
6/30/99 12/31/98
CISCO SYSTEMS, INC. 5.1% 2.4%
AMERICA ONLINE INC. 4.8% 7.5%
GENERAL ELECTRIC
CO. (U.S.) 4.6% 4.2%
TYCO INTERNATIONAL LTD. 4.1% 1.7%
MICROSOFT CORP. 4.1% 5.4%
AMERICAN INTERNATIONAL
GROUP, INC. 3.8% 3.5%
SCHERING-PLOUGH CORP. 3.7% 2.4%
VODAFONE GROUP
PLC ADR 3.5% --
CLEAR CHANNEL
COMMUNICATIONS,
INC. 3.0% --
WAL-MART STORES, INC. 2.9% 2.2%

TOP FIVE STOCK INDUSTRIES
% OF EQUITY PORTFOLIO
AS OF AS OF
6/30/99 12/31/98
COMPUTER SOFTWARE
& SERVICES 15.2% 13.7%
PHARMACEUTICALS 11.6% 20.3%
DIVERSIFIED COMPANIES 8.7% 5.8%
ELECTRICAL & ELECTRONIC
COMPONENTS 8.5% 3.2%
COMPUTER PERIPHERALS 5.1% 2.4%

www.americancentury.com 7

VP Advantage--Q&A
- --------------------------------------------------------------------------------
(Continued)

Mortgage-backed securities also benefited from a change in investor
sentiment that caused bond investors to shift out of lower-yielding Treasury
securities into higher-yielding investments such as mortgages.

WHAT'S YOUR OUTLOOK FOR THE U.S. ECONOMY AND THE MARKETS?

We expect to see continued strong economic growth, modest but higher
inflation, and less interest rate volatility than we've seen over the past year.
The strong growth/modest inflation formula is a familiar one that has pushed the
U.S. stock market higher for the past four years. This could continue through
1999, barring any major unforeseen political or economic shocks.

Our forecast for greater interest rate stability is based in part on recent
volatility. We think the dramatic drop in interest rates in 1998 was an
exaggerated move caused by abnormal occurrences such as the rapid liquidation of
positions by highly leveraged hedge funds. We don't anticipate that kind of
steep decline in interest rates anytime soon.

Similarly, we don't expect rates to rise as much as they did in the first
half of 1999. Another interest rate hike or two by the Fed and somewhat higher
inflation already seem to be reflected in bond prices and yields, so we believe
rates could increase moderately or trade in a relatively narrow range. Corporate
and mortgage-backed securities should perform quite well if interest rate
volatility remains relatively low.

WHAT'S YOUR OUTLOOK FOR VP ADVANTAGE?

We currently intend for VP Advantage to continue to fulfill its role as a
moderate-risk fund for investors who want both income and growth.

The stock portfolio provides the potential for capital appreciation, while
the goal of the fixed-income portfolio is to cushion the potential volatility of
the stock holdings and provide a steady, reliable source of investment income.

[left margin]

"WE ALSO REDUCED THE PORTFOLIO'S SENSITIVITY TO INTEREST RATE CHANGES BY
CUTTING ITS DURATION AND WEIGHTED AVERAGE MATURITY."

FIXED-INCOME PORTFOLIO
AS OF AS OF
6/30/99 12/31/98
============================================================================
PORTFOLIO SENSITIVITY TO INTEREST RATES
WEIGHTED AVERAGE MATURITY 5.5 YEARS 5.7 YEARS
DURATION 3.8 YEARS 4.0 YEARS
============================================================================
PORTFOLIO CREDIT QUALITY % OF FIXED-INCOME PORTFOLIO
AAA 100% 100%

Investment terms are defined in the Glossary on pages 18-19. Ratings provided by
Standard & Poor's. See Credit Rating Guidelines on page 17 for more information.

8 1-800-345-6488

VP Advantage--Schedule of Investments
- --------------------------------------------------------------------------------

NOTE: For securities denominated in foreign currencies, the market value is
translated into U.S. dollars based on exchange rates as of the last day of
reporting period.

JUNE 30, 1999 (UNAUDITED)

Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS--40.5%
AEROSPACE & DEFENSE--0.6%
2,000 United Technologies Corp. $ 143,375
------------
BANKING--0.7%
400 Chase Manhattan Corp. 34,650
3,000 Wells Fargo & Co. 128,250
------------
162,900
------------
BIOTECHNOLOGY--0.6%
2,200 Biogen, Inc.(1) 141,556
------------
BROADCASTING & MEDIA--1.8%
4,000 Clear Channel Communications,
Inc.(1) 275,750
1,800 Time Warner Inc. 132,300
------------
408,050
------------
BUSINESS SERVICES & SUPPLIES--0.4%
2,000 Young & Rubicam Inc. 90,875
------------
COMPUTER PERIPHERALS--2.1%
7,400 Cisco Systems Inc.(1) 476,606
------------
COMPUTER SOFTWARE & SERVICES--6.1%
4,000 America Online Inc.(1) 442,000
1,000 Computer Associates International,
Inc. 55,000
3,400 First Data Corp. 166,388
4,200 Microsoft Corp.(1) 378,525
3,800 Oracle Corp.(1) 141,075
2,500 Rational Software Corp.(1) 82,422
3,700 Unisys Corp.(1) 144,069
------------
1,409,479
------------
COMPUTER SYSTEMS--1.0%
1,200 International Business Machines
Corp. 155,100
1,000 Sun Microsystems, Inc.(1) 68,906
------------
224,006
------------
CONSUMER PRODUCTS--0.8%
2,000 Procter & Gamble Co. (The) 178,500
------------
DIVERSIFIED COMPANIES--3.5%
3,800 General Electric Co. (U.S.) 429,400
4,000 Tyco International Ltd. 379,000
------------
808,400
------------

Shares Value
- --------------------------------------------------------------------------------
ELECTRICAL & ELECTRONIC COMPONENTS--3.4%
2,000 Intel Corp. $ 118,937
1,000 Linear Technology Corp. 67,312
1,600 Texas Instruments Inc. 232,000
1,000 Uniphase Corp.(1) 166,125
3,600 Xilinx, Inc.(1) 206,212
------------
790,586
------------
FINANCIAL SERVICES--1.3%
1,800 Equitable Companies Inc. 120,600
1,700 Franklin Resources, Inc. 69,062
1,000 Schwab (Charles) Corp. 109,875
------------
299,537
------------
FOOD & BEVERAGE--1.8%
2,500 Coca-Cola Company (The) 156,250
5,000 Coca-Cola Enterprises, Inc. 148,750
2,600 PepsiCo, Inc. 100,588
------------
405,588
------------
INDUSTRIAL EQUIPMENT & MACHINERY--0.9%
1,300 Mannesmann AG ORD 195,159
------------
INSURANCE--1.5%
2,984 American International Group, Inc. 349,314
------------
LEISURE--0.5%
2,800 Viacom, Inc. Cl B(1) 123,200
------------
MEDICAL EQUIPMENT & SUPPLIES--1.2%
3,700 Guidant Corp. 190,319
1,000 Medtronic, Inc. 77,875
------------
268,194
------------
PHARMACEUTICALS--4.7%
2,600 Bristol-Myers Squibb Co. 183,137
5,000 Glaxo Wellcome plc ORD 138,946
1,900 Pfizer, Inc. 208,525
6,400 Schering-Plough Corp. 339,200
3,000 Warner-Lambert Co. 208,125
------------
1,077,933
------------
PRINTING & PUBLISHING--0.6%
2,400 McGraw-Hill Companies, Inc. (The) 129,450
------------
RESTAURANTS--0.5%
2,800 McDonald's Corp. 115,675
------------

See Notes to Financial Statements

www.americancentury.com 9

VP Advantage--Schedule of Investments
- --------------------------------------------------------------------------------
(Continued)
JUNE 30, 1999 (UNAUDITED)

Shares/Principal Amount Value
- --------------------------------------------------------------------------------
RETAIL (APPAREL)--0.7%
1,200 Gap, Inc. (The) $ 60,450
1,300 Limited, Inc. (The) 58,987
800 Ross Stores, Inc. 40,225
-----------
159,662
-----------
RETAIL (GENERAL MERCHANDISE)--1.6%
1,400 Costco Companies, Inc.(1) 112,044
5,500 Wal-Mart Stores, Inc. 265,375
-----------
377,419
-----------
RETAIL (INTERNET)--0.2%
300 eBay Inc.(1) 45,384
-----------
RETAIL (SPECIALTY)--1.0%
3,500 Home Depot, Inc. 225,531
-----------
TELEPHONE COMMUNICATIONS--1.6%
2,000 ALLTEL Corp. 143,000
600 MCI WorldCom, Inc.(1) 51,619
3,000 Sprint Corp. 158,438
-----------
353,057
-----------
WIRELESS COMMUNICATIONS--1.4%
1,650 Vodafone Group plc ADR 325,050
-----------
TOTAL COMMON STOCKS 9,284,486
-----------
(Cost $6,866,813)

U.S. TREASURY SECURITIES--35.8%
$1,000,000 U.S. Treasury Notes, 7.75%,
1/31/00 1,015,309
1,000,000 U.S. Treasury Notes, 5.75%,
10/31/00 1,004,863
150,000 U.S. Treasury Notes, 5.50%,
12/31/00 150,149
300,000 U.S. Treasury Notes, 6.25%,
1/31/02 304,324
1,200,000 U.S. Treasury Notes, 6.50%,
5/31/02 1,228,283
1,000,000 U.S. Treasury Notes, 7.875%,
11/15/04 1,090,662
2,000,000 U.S. Treasury Notes, 6.50%,
8/15/05 2,057,659
800,000 U.S. Treasury Notes, 6.50%,
10/15/06 826,104

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

$ 400,000 U.S. Treasury Bonds, 9.125%,
5/15/18 $ 524,210
-----------
TOTAL U.S. TREASURY SECURITIES 8,201,563
-----------
(Cost $8,219,236)

U.S. GOVERNMENT AGENCY SECURITIES--1.0%
250,000 FNMA MTN, 5.54%, 2/5/04 242,602
-----------
(Cost $250,000)

MORTGAGE-BACKED SECURITIES(2)--3.5%
440,429 FNMA Pool #426431, 6.50%,
6/1/13 435,041
198,145 FNMA Pool #454947, 6.00%,
12/1/28 186,828
171,759 GNMA Pool #780412, 7.50%,
8/15/26 174,134
-----------
TOTAL MORTGAGE-BACKED SECURITIES 796,003
-----------
(Cost $815,169)

TEMPORARY CASH INVESTMENTS--19.2%
Repurchase Agreement, BA Securities Services,
Inc., (U.S. Treasury obligations), in a joint
trading account at 4.68%, dated 6/30/99,
due 7/1/99 (Delivery value $800,104) 800,000
Repurchase Agreement, Goldman Sachs & Co.,
Inc., (U.S. Treasury obligations), in a joint
trading account at 4.70%, dated 6/30/99,
due 7/1/99 (Delivery value $1,100,144) 1,100,000
Repurchase Agreement, Morgan Stanley Group,
Inc., (U.S. Treasury obligations), in a joint
trading account at 4.72%, dated 6/30/99,
due 7/1/99 (Delivery value $1,100,144) 1,100,000
Repurchase Agreement, State Street Boston
Corp., (U.S. Treasury obligations), in a joint
trading account at 4.70%, dated 6/30/99,
due 7/1/99 (Delivery value $1,100,144) 1,100,000
Units of Participation in Chase Vista U.S.
Government Money Market Fund (Institutional
Shares) 300,000
-----------
TOTAL TEMPORARY CASH INVESTMENTS 4,400,000
-----------
(Cost $4,400,000)

TOTAL INVESTMENT SECURITIES--100.0% $22,924,654
===========
(Cost $20,551,218)

NOTES TO SCHEDULE OF INVESTMENTS

ADR = American Depositary Receipt MTN = Medium Term Note

FNMA = Federal National Mortgage Association ORD = Foreign Ordinary Share

GNMA = Government National Mortgage Association

(1) Non-income producing.

(2) Final maturity indicated. Expected remaining maturity used for purposes of
calculating the weighted average portfolio maturity.

See Notes to Financial Statements

10 1-800-345-6488

Statement of Assets and Liabilities
- --------------------------------------------------------------------------------

JUNE 30, 1999 (UNAUDITED)

ASSETS
Investment securities, at value
(identified cost of $20,551,218)
(Note 3) ................................................. $ 22,924,654
Cash ....................................................... 60,640
Receivable for investments sold ............................ 307,846
Dividends and interest receivable .......................... 147,174
------------
23,440,314
------------

LIABILITIES
Payable for investments purchased .......................... 123,123
Accrued management fees (Note 2) ........................... 18,919
Payable for directors' fees and expenses ................... 38
------------
142,080
------------
Net Assets ................................................. $ 23,298,234
============

CAPITAL SHARES, $0.01 PAR VALUE
Authorized ................................................. 200,000,000
============
Outstanding ................................................ 3,577,762
============
Net Asset Value Per Share .................................. $ 6.51
============

NET ASSETS CONSIST OF:
Capital (par value and paid-in surplus) .................... $ 18,204,792
Undistributed net investment income ........................ 307,636
Accumulated undistributed
net realized gain on
investments and foreign
currency transactions .................................... 2,411,608
Net unrealized appreciation on
investments and translation
of assets and liabilities in foreign
currencies (Note 3) ...................................... 2,374,198
------------
$ 23,298,234
============

See Notes to Financial Statements

www.americancentury.com 11

Statement of Operations
- --------------------------------------------------------------------------------

FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)

INVESTMENT INCOME
Income:
Interest ................................................... $ 398,924
Dividends .................................................. 27,500
-----------
426,424
-----------
Expenses (Note 2):
Management fees ............................................ 120,740
Directors' fees and expenses ............................... 119
-----------
120,859
-----------
Net investment income ...................................... 305,565
-----------

REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTE 3)
Net realized gain on:
Investments .............................................. 2,439,590
Foreign currency transactions ............................ 2,507
-----------
2,442,097
-----------
Change in net unrealized
appreciation on:
Investments .............................................. (1,808,993)
Translation of assets and liabilities
in foreign currencies .................................... 762
-----------
(1,808,231)
-----------
Net realized and unrealized
gain on investments ...................................... 633,866
-----------
Net Increase in Net Assets
Resulting from Operations ................................ $ 939,431
===========

See Notes to Financial Statements

12 1-800-345-6488

Statements of Changes in Net Assets
- --------------------------------------------------------------------------------

This statement shows how the fund's net assets changed over the past two
reporting periods. It details how much the fund grew or shrank as a result of
operations (as detailed on the previous page for the most recent period), income
and capital gain distributions, and shareholder investments and redemptions.

SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED) AND YEAR ENDED DECEMBER 31, 1998

Increase (Decrease) in Net Assets 1999 1998

OPERATIONS
Net investment income ........................ $ 305,565 $ 694,092
Net realized gain on investments
and foreign currency transactions .......... 2,442,097 1,680,064
Change in net unrealized appreciati
on on investments and
translation of assets and liabilities
in foreign currencies ...................... (1,808,231) 1,644,573
------------ ------------
Net increase in net assets
resulting from operations .................. 939,431 4,018,729
------------ ------------

DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ................... (689,103) (550,641)
From net realized gains
on investment transactions ................. (1,635,766) (2,071,936)
------------ ------------
Decrease in net assets from distributions .... (2,324,869) (2,622,577)
------------ ------------

CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold .................... 1,019,099 1,310,979
Proceeds from reinvestment
of distributions ........................... 2,324,869 2,622,577
Payments for shares redeemed ................. (4,968,766) (4,265,031)
------------ ------------
Net decrease in net assets
from capital share transactions ............ (1,624,798) (331,475)
------------ ------------
Net increase (decrease) in net assets ........ (3,010,236) 1,064,677

NET ASSETS
Beginning of period .......................... 26,308,470 25,243,793
------------ ------------
End of period ................................ $ 23,298,234 $ 26,308,470
============ ============
Undistributed net investment income .......... $ 307,636 $ 691,174
============ ============

TRANSACTIONS IN SHARES OF THE FUND
Sold ......................................... 152,544 203,590
Issued in reinvestment of distributions ...... 362,129 423,680
Redeemed ..................................... (728,940) (657,844)
------------ ------------
Net decrease ................................. (214,267) (30,574)
============ ============

See Notes to Financial Statements

www.americancentury.com 13

Notes to Financial Statements
- --------------------------------------------------------------------------------

JUNE 30, 1999 (UNAUDITED)

- --------------------------------------------------------------------------------
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION -- American Century Variable Portfolios, Inc., (the
corporation) is registered under the Investment Company Act of 1940 as an
open-end diversified management investment company. VP Advantage Fund, (the
fund) is one of the six 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 and 40% in equity securities
that are considered by management to have better-than-average prospects for
appreciation. The following significant accounting policies are in accordance
with generally accepted accounting principles; these principles may require the
use of estimates by fund management.

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 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.

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.

ADDITIONAL INFORMATION -- Funds Distributor, Inc. (FDI) is the corporation's
distributor. Certain officers of FDI are also officers of the corporation.

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

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, and
the corporation's transfer agent, American Century Services Corporation.

14 1-800-345-6488

Notes to Financial Statements
- --------------------------------------------------------------------------------
(Continued)
JUNE 30, 1999 (UNAUDITED)

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

Purchases of investment securities, excluding short-term investments,
totaled $7,511,276, including purchases of U.S. Treasury and Agency obligations
totaling $856,305. Sales of investment securities, excluding short-term
investments, totaled $9,955,281, including sales of U.S. Treasury and Agency
obligations totaling $1,467,577.

As of June 30, 1999, accumulated net unrealized appreciation was $2,347,802,
based on the aggregate cost of investments for federal income tax purposes of
$20,576,852, which consisted of unrealized appreciation of $2,552,741 and
unrealized depreciation of $204,939.

- --------------------------------------------------------------------------------
4. BANK LOANS

- --------------------------------------------------------------------------------
5. FUND EVENTS

The following name change became effective March 1, 1999:

==================================================================
NEW NAME FORMER NAME
==================================================================

FUND: VP Advantage Fund American Century VP Advantage

www.americancentury.com 15

VP Advantage--Financial Highlights
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED DECEMBER 31 (EXCEPT AS NOTED)

1999(1) 1998 1997 1996 1995 1994
PER-SHARE DATA
Net Asset Value,
<S> <C> <C> <C> <C> <C> <C>
Beginning of Period ................ $ 6.94 $ 6.60 $ 6.29 $ 6.19 $ 5.48 $ 5.57
---------- ---------- ---------- ---------- ---------- ----------
Income From Investment Operations
Net Investment Income .............. 0.11 0.19 0.19 0.20 0.20 0.15
Net Realized and Unrealized
Gain (Loss) on Investment
Transactions ....................... 0.14 0.86 0.56 0.34 0.71 (0.09)
---------- ---------- ---------- ---------- ---------- ----------
Total From Investment Operations ... 0.25 1.05 0.75 0.54 0.91 0.06
---------- ---------- ---------- ---------- ---------- ----------
Distributions
From Net Investment Income ......... (0.20) (0.15) (0.10) (0.15) (0.20) (0.15)
From Net Realized Gains on
Investment Transactions ............ (0.48) (0.56) (0.34) (0.29) -- --
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions ................ (0.68) (0.71) (0.44) (0.44) (0.20) (0.15)
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Period ....... $ 6.51 $ 6.94 $ 6.60 $ 6.29 $ 6.19 $ 5.48
========== ========== ========== ========== ========== ==========
Total Return(2) .................... 3.76% 17.19% 12.83% 9.25% 16.75% 1.03%

RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets ............. 1.00%(3) 1.00% 0.99% 0.98% 0.95% 1.00%
Ratio of Net Investment Income
to Average Net Assets ............. 2.53%(3) 2.74% 2.85% 3.10% 3.32% 2.65%
Portfolio Turnover Rate .............. 38% 82% 69% 80% 99% 57%
Net Assets, End of Period
(in thousands) ..................... $ 23,298 $ 26,308 $ 25,244 $ 25,230 $ 24,037 $ 22,413
</TABLE>

(1) Six months ended June 30, 1999 (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.

See Notes to Financial Statements

16 1-800-345-6488

Background Information
- --------------------------------------------------------------------------------

INVESTMENT TEAM LEADERS

Equity Portfolio
JIM STOWERS III
JOHN SYKORA
BRUCE WIMBERLY

Fixed-Income Portfolio
JEFF HOUSTON
JOHN WALSH

INVESTMENT PHILOSOPHY AND POLICIES

AMERICAN CENTURY 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 with a weighted average maturity of six months or less, and the
remaining 40% in the stocks of firms considered by management to have
better-than-average prospects for appreciation.

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

For the equity portfolio, the management team seeks to own successful
companies, which we define as those with growing earnings and revenues.

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 one "star" manager. We
believe this allows us to make better, more consistent management decisions.

COMPARATIVE INDICES

The indices listed below are used in the report for fund performance
comparisons. 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, another 40% is represented by the S&P 500, and the
remaining 20% is represented by a 90-day Treasury bill index.

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.

The S&P 500 is a capitalization-weighted index of the stocks of 500
publicly-traded large-capitalization 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 performance.

The 90-DAY TREASURY BILL INDEX is derived from secondary market interest
rates as published by the Federal Reserve Bank.

CREDIT RATING GUIDELINES

Securities rated AAA, AA, A, or BBB are considered "investment-grade"
securities, meaning they are relatively safe from default.

It's important to note that credit ratings are subjective, reflecting the
opinions of the rating agencies; they are not absolute standards of quality.

www.americancentury.com 17

Glossary
- --------------------------------------------------------------------------------

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 fiscal year-by-year total returns, please refer to the "Financial
Highlights" on page 16.

FIXED-INCOME TERMS

* CASH -- short-term debt securities of such high liquidity and safety that they
are virtually as good as cash.

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

* DURATION --a measure of the sensitivity of a fixed-income portfolio to
interest rate changes. It is a time-weighted average of the interest and
principal payments of the securities in a portfolio. As the duration of a
portfolio increases, the impact of a change in interest rates on the value of
the portfolio also increases.

* MORTGAGE-BACKED SECURITIES -- debt securities that represent ownership in
pools of mortgage loans.

* U.S. GOVERNMENT AGENCY SECURITIES -- debt securities issued by U.S. government
agencies such as the Federal Home Loan Bank and the Federal Farm Credit Bank.
Some agency securities are backed by the full faith and credit of the U.S.
government, while others are guaranteed only by the issuing agency.

* U.S. TREASURY SECURITIES -- debt securities issued by the U.S. Treasury and
backed by the direct "full faith and credit" pledge of the U.S. government.

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

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.

* COMMON STOCKS --units of ownership of a public corporation.

* CYCLICAL STOCKS --generally considered to be stocks whose price and earnings
fluctuations tend to follow the ups and downs of the business cycle.

* GROWTH STOCKS --generally considered to be the stocks of companies that have
experienced above-average earnings growth and appear likely to continue such
growth.

* VALUE STOCKS --generally considered to be stocks that are relatively
inexpensive.

* LARGE-CAPITALIZATION ("LARGE-CAP") STOCKS --these tend to be the stocks that
make up the Dow Jones Industrial Average and the S&P 500.

* MEDIUM-CAPITALIZATION ("MID-CAP") STOCKS --these tend to be the stocks that
make up the S&P MidCap 400.

* SMALL-CAPITALIZATION ("SMALL-CAP") STOCKS --these tend to be the stocks that
make up the S&P SmallCap 600.

18 1-800-345-6488

Glossary
- --------------------------------------------------------------------------------
(Continued)
FUND CLASSIFICATIONS

INVESTMENT OBJECTIVE

* CAPITAL PRESERVATION -- offers taxable and tax-free money market funds for
relative stability of principal and liquidity.

* INCOME -- offers funds that can provide current income and competitive yields,
as well as a strong and stable foundation and generally lower volatility levels
than stock funds.

* GROWTH & INCOME -- offers funds that emphasize both growth and income,
provided by either dividend-paying equities or a combination of equity and
fixed-income securities.

* GROWTH -- offers funds with a focus on capital appreciation and long-term
growth, generally providing high return potential with corresponding high price
fluctuation risk.

RISK

The classification of funds by risk category is based on quantitative
historical measures as well as qualitative prospective measures. It is not
intended to be a precise indicator of future risk or return levels. The degree
of risk within each category can vary significantly, and some fund returns have
historically been higher than more aggressive funds or lower than more
conservative funds. Please be aware that the fund's category may change over
time. Therefore, it is important that you read a fund's prospectus or fund
profile carefully before investing to ensure its objectives, policies, and risk
potential are consistent with your needs.

* CONSERVATIVE -- these funds generally provide lower return potential with
either low or minimal price fluctuation risk.

* MODERATE -- these funds generally provide moderate return potential with
moderate price fluctuation risk.

* AGGRESSIVE -- these funds generally provide high return potential with
corresponding high price fluctuation risk.

www.americancentury.com 19

Notes
- --------------------------------------------------------------------------------

20 1-800-345-6488

[inside back cover]

RISK LEVEL - CONSERVATIVE

TAXABLE MONEY MARKETS TAX-FREE MONEY MARKETS

===============================================================================
INVESTMENT OBJECTIVE - INCOME
===============================================================================

RISK LEVEL - AGGRESSIVE

TAXABLE BONDS TAX-FREE BONDS

Target 2025* CA High-Yield Municipal
Target 2020* High-Yield Municipal
Target 2015*
Target 2010*
High-Yield
International Bond

RISK LEVEL - MODERATE

TAXABLE BONDS TAX-FREE BONDS

Long-Term Treasury CA Long-Term Tax-Free
Target 2005* Long-Term Tax-Free
Bond CA Insured Tax-Free
Premium Bond

RISK LEVEL - CONSERVATIVE

TAXABLE BONDS TAX-FREE BONDS

RISK LEVEL - AGGRESSIVE

DOMESTIC EQUITY

Small Cap Quantitative
Small Cap Value

RISK LEVEL - MODERATE

ASSET ALLOCATION/BALANCED DOMESTIC EQUITY SPECIALTY

===============================================================================
INVESTMENT OBJECTIVE - GROWTH
===============================================================================

RISK LEVEL - AGGRESSIVE

DOMESTIC EQUITY SPECIALTY INTERNATIONAL

New Opportunities Global Gold Emerging Markets
Giftrust(reg.tm) International Discovery
Vista International Growth
Heritage Global Growth
Growth
Ultra(reg.tm)
Select

RISK LEVEL - MODERATE

SPECIALTY

Global Natural Resources

The investment objective may be based on the fund's objective as stated in its
prospectus or fund profile, or the fund's categorization by independent rating
organizations based on its management style.

The classification of funds by risk category is based on quantitative historical
measures as well as qualitative prospective measures. It is not intended to be a
precise indicator of future risk or return levels. The degree of risk within
each category can vary significantly, and some fund returns have historically
been higher than more aggressive funds or lower than more conservative funds.
Please be aware that a fund's category may change over time. Therefore, it is
important that you read a fund's prospectus or fund profile carefully before
investing to ensure its objectives, policies and risk potential are consistent
with your needs.

For a definition of fund categories, see the Glossary.

- --------------------------------------------------------------------------------
[back cover]

[american century logo(reg.sm)]
American
Century

P.O. BOX 419385
KANSAS CITY, MISSOURI 64141-6385

WWW.AMERICANCENTURY.COM

INVESTOR RELATIONS
1-800-345-6488

AUTOMATED INFORMATION LINE
1-800-345-8765

FAX: 816-340-4360

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-345-1833

AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.

INVESTMENT MANAGER
AMERICAN CENTURY INVESTMENT MANAGEMENT, INC.
KANSAS CITY, MISSOURI

9908 Funds Distributor, Inc.
SH-SAN-17131 (c)1999 American Century Services Corporation
<PAGE>
[front cover]
JUNE 30, 1999

SEMIANNUAL REPORT
- -----------------
AMERICAN CENTURY
VARIABLE PORTFOLIOS

[graphic of stairs]

- -----------------------
VP INCOME & GROWTH

[american century logo(reg.sm)]
American
Century

[inside front cover]

[left margin]

VARIABLE PORTFOLIOS
VP INCOME & GROWTH
- -------------------

During the six months ended June 30, 1999, we witnessed a surprising
turnaround in the U.S. economic outlook. When we last addressed you in the
annual report for American Century VP Income & Growth, the Federal Reserve (the
U.S. central bank) had recently cut short-term interest rates to bolster the
U.S. economy and help stabilize markets worldwide.

Instead, global economic conditions rebounded. By January 1999, overseas
economies were stabilizing, the U.S. economy was posting strong growth, and
investor confidence had returned. Interest rates rose while the U.S. stock
market soared -- the benchmark 30-year Treasury bond yield closed above 6% for
the first time in a year and a half and the Dow Jones Industrial Average broke
through 10,000 in the first quarter and continued to climb to record highs in
the second quarter.

In March and April of this year, we participated in the Security Industry
Association's (SIA) industry-wide test and successfully processed transactions
for dates up to and beyond 2000. We also participated in the Market Data Test
conducted by the SIA and Financial Information Forum in May. Again, the computer
scripts were executed successfully with no Y2K-related errors.

As always, we appreciate your continued confidence in American Century.

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 Vice Chairman of the Board and
Chief Executive Officer

[right margin]

Table of Contents
Report Highlights ....................................................... 2
Market Perspective ...................................................... 3
VP INCOME & GROWTH
Performance Information ................................................. 5
Management Q&A .......................................................... 6
Portfolio at a Glance ................................................... 6
Top Ten Holdings ........................................................ 7
Top Five Industries ..................................................... 8
Schedule of Investments ................................................. 9
FINANCIAL STATEMENTS
Statement of Assets and
Liabilities .......................................................... 14
Statement of Operations ................................................. 15
Statements of Changes
in Net Assets ........................................................ 16
Notes to Financial
Statements ........................................................... 17
Financial Highlights .................................................... 19
OTHER INFORMATION
Background Information
Investment Team
Leaders ........................................................... 20
Investment Philosophy
and Policies ...................................................... 20
Comparative Indices .................................................. 20
Glossary ................................................................ 21

* This letter includes a Year 2000 Readiness Disclosure.

www.americancentury.com 1

Report Highlights
- --------------------------------------------------------------------------------

MARKET PERSPECTIVE

* U.S. stocks performed fairly well during the six months ended June 30, 1999.
Large-cap stocks continued to enjoy above-average gains, while mid- and
small-cap shares posted more historically average returns.

* Large-cap growth stocks won the lion's share of gains during 1998, and that
trend continued into early 1999.

* The second quarter of 1999 clearly demonstrated the value of maintaining a
diversified stock portfolio--investors turned from large-cap growth stocks
and instead sought attractively priced value and small-company shares.

* Cyclical stocks--those closely tied to economic ups and downs--also
performed well during the three months ended June 30.

* Solid corporate earnings and resilient economic strength attracted the
attention of the Federal Reserve. The Fed raised short-term interest rates
at the end of June to slow U.S. growth to a less-inflationary pace.

MANAGEMENT Q&A

* VP Income & Growth gained nearly 10%, but trailed its benchmark, the S&P
500.

* Our underweighted position in some of the bellwether companies that drove
the market during the first quarter led to underperformance relative to the
S&P 500.

* VP Income & Growth outperformed the S&P 500 in the second quarter for some
of the same reasons it had underperformed during the first quarter.

* Hewlett-Packard and Morgan Stanley Dean Witter were two of the fund's better
performers during the six months--they rose roughly 48% and 45%,
respectively.

* The fund's slight value tilt relative to the S&P 500 limited its holdings of
some of the more high-flying media stocks, which performed very well despite
what we felt were overly inflated prices.

* Going forward, we intend to remain fully invested, while focusing more on
individual stock selection within each industry, rather than on broad
industry over- and underweights relative to the S&P 500.

[left margin]

VP INCOME & GROWTH
TOTAL RETURNS: AS OF 6/30/99
6 Months 9.76%*
1 Year 18.54%
INCEPTION DATE: 10/30/97
NET ASSETS: $264.6 million

* Not annualized.

Investment terms are defined in the Glossary on pages 21-22.

2 1-800-345-6488

MARKET SNAPSHOT

U.S. stocks performed fairly well during the six months ended June 30,
1999. Large-cap stocks continued to enjoy above-average gains, while mid- and
small-cap shares posted more historically average returns. (See the accompanying
Stock Market Returns table.)

Solid corporate earnings and fairly robust U.S. economic growth kept
investor sentiment high and fueled gains in domestic equities.

THE SEEDS OF CHANGE

Large-cap growth stocks won the lion's share of gains during 1998, and that
trend continued into early 1999. Investor willingness to pay unprecedented
prices for stocks of companies providing above-average earnings primarily
benefited from this trend.

In addition, market leadership was very narrow. According to Morgan Stanley
Dean Witter, just five stocks accounted for half of the S&P 500's return during
the first three months of 1999, while a mere 18 accounted for the full 100%; the
rest essentially canceled each other out. (Because the S&P 500 is weighted by
market value, the higher the total value of a company's stock, the more it
influences index returns.)

As a result, the difference between the performance of large-cap growth and
value stocks was the greatest it has ever been. But bellwether growth names
became increasingly expensive. And with U.S. economic growth showing few signs
of wear and tear from 1998's global economic crises, investors became less
cautious and began to look for better values.

VALUE AND SMALL-CAP STOCKS SURGE

That was the backdrop as the second quarter of 1999 began--a quarter that
clearly demonstrated the value of maintaining a diversified stock portfolio.
Turning from large-cap growth stocks, investors sought attractively priced value
and small-company shares. Unlike growth stocks, value stocks tend to have lower
price/earnings ratios, meaning that investors pay less for earnings.

Such shares were clear favorites during the quarter--the S&P 500/BARRA
Value Index, a benchmark for the performance of large-cap value stocks, rose
10.8%, significantly higher than the 3.8% return of the S&P 500/BARRA Growth
Index. More impressive still, however, was the performance of small-cap value
shares: the S&P SmallCap 600/BARRA Value Index rose a stellar 19.9%, outpacing
the S&P SmallCap 600/BARRA Growth Index, which jumped 11.1%.

Cyclical stocks--those closely tied to economic ups and downs--also
performed well during the three months ended June 30. Investors greeted these
stocks with enthusiasm because of improving global economic conditions.

[right margin]

LARGE-CAP STOCKS CONTINUED TO ENJOY ABOVE-AVERAGE GAINS, WHILE MID- AND
SMALL-CAP SHARES POSTED MORE HISTORICALLY AVERAGE RETURNS."

STOCK MARKET RETURNS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
S&P 500 12.23%
S&P MIDCAP 400 6.87%
S&P SMALLCAP 600 5.04%

Source: Lipper Inc.

These indices represent the performance of large-, medium-, and
small-capitalization stocks.

[line graph - data below]

STOCK MARKET PERFORMANCE (GROWTH OF $1.00)
FOR THE SIX MONTHS ENDED JUNE 30, 1999

S&P 500 S&P Midcap 400 S&P SmallCap 600
12/31/1998 $1.00 $1.00 $1.00
1/31/1999 $1.04 $0.96 $0.99
2/28/1999 $1.01 $0.91 $0.90
3/31/1999 $1.05 $0.94 $0.91
4/30/1999 $1.09 $1.01 $0.97
5/31/1999 $1.06 $1.01 $0.99
6/30/1999 $1.12 $1.07 $1.05

Source: Lipper Inc.

These indices are defined on page 20.

www.americancentury.com 3

Market Perspective from Mark Mallon
- --------------------------------------------------------------------------------
(Continued)

That turn of events allowed shares of aluminum, chemicals, construction,
and diversified machinery companies to provide some of the quarter's better
returns. Aluminum was also one of the better performing industries for the
entire six months, as were the brokerage, broadcast/media, industrials, and
semiconductor industries.

ECONOMIC UNDERPINNINGS

The longest economic expansion in 50 years provided the springboard for the
stock market's continued gains. The remarkable U.S. economic engine churned
ahead at a 4.3% annual pace during the first quarter, accompanied by corporate
earnings that were far stronger than expected. Improvements in Pacific Rim
economies--where Korea's industrial production surged, Taiwan's leading
indicators rose, and Japan's economy showed signs of life--enhanced the global
economic outlook.

The U.S. economy slowed some in the second quarter, but still grew at an
estimated 2.3% annual pace. Meanwhile, U.S. corporate profits rose 16%--the
largest quarterly gain in nearly four years. By the end of June, the three most
widely recognized U.S. stock indices--the Dow Jones Industrials, the S&P 500,
and the Nasdaq Composite--all achieved record highs.

THE FED INTERVENES

Impressive corporate earnings and economic strength attracted the attention
of the Federal Reserve (the Fed). Just days after the government's May
announcement that consumer prices experienced their biggest monthly gain in
almost nine years, the Fed announced that it had shifted to a rate-raising bias.
On June 30th, the Fed went further, ratcheting short-term interest rates a
quarter of a percent higher. Viewed as a precautionary move, the widely expected
increase had little negative impact on U.S. financial markets.

In fact, stocks staged a relief rally after the Fed revealed that it had
reverted from its tightening bias to a neutral stance. Many market participants
had feared that the quarter-percent hike might be just the first in a series
over the coming months. So signs that the Fed intends to wait for evidence that
inflation is accelerating before raising borrowing costs again were well
received.

[left margin]

"THE U.S. ECONOMY SLOWED SOME IN THE SECOND QUARTER, BUT STILL GREW AT AN
ESTIMATED 2.3% ANNUAL PACE."

[line graph - data below]

GROWTH VS. VALUE (GROWTH OF $1.00)
FOR THE SIX MONTHS ENDED JUNE 30, 1999

S&P 500/BARRA Value S&P 500/BARRA Growth
12/31/1998 $1.00 $1.00
1/31/1999 $1.02 $1.06
2/28/1999 $1.00 $1.02
3/31/1999 $1.03 $1.07
4/30/1999 $1.12 $1.07
5/31/1999 $1.10 $1.04
6/30/1999 $1.14 $1.11

Source: Lipper Inc.

GROWTH VS. VALUE BY MARKET CAPITALIZATION
FOR THE SIX MONTHS ENDED JUNE 30, 1999
S&P 500/BARRA GROWTH 10.98%
S&P 500/BARRA VALUE 13.96%
S&P MIDCAP 400/BARRA GROWTH 8.19%
S&P MIDCAP 400/BARRA VALUE 5.68%
S&P SMALLCAP 600/BARRA GROWTH 1.67%
S&P SMALLCAP 600/BARRA VALUE 8.45%

Source: Russell/Mellon Analytical

4 1-800-345-6488

VP Income & Growth--Performance
- --------------------------------------------------------------------------------

TOTAL RETURNS AS OF JUNE 30, 1999

VP INCOME & GROWTH S&P 500
===========================================================================
6 MONTHS(1) 9.76% 12.23%
1 YEAR 18.54% 22.75%
===========================================================================
AVERAGE ANNUAL RETURNS
LIFE OF FUND 27.61% 30.46%

The fund's inception date was 10/30/97.

(1) Returns for periods less than one year are not annualized.

See pages 20-21 for information about returns about returns and the comparative
index.

[mountain graph - data below]

GROWTH OF $10,000 OVER LIFE OF FUND
Value on 6/30/1999
S&P 500 $15,572
VP Income & Growth $15,011

VP Income & Growth S&P 500
DATE VALUE VALUE
10/30/1997 $10,000 $10,000
11/30/1997 $10,540 $10,572
12/31/1997 $10,780 $10,754
1/31/1998 $10,801 $10,872
2/28/1998 $11,761 $11,656
3/31/1998 $12,403 $12,253
4/30/1998 $12,443 $12,378
5/31/1998 $12,242 $12,165
6/30/1998 $12,664 $12,659
7/31/1998 $12,483 $12,525
8/31/1998 $10,636 $10,715
9/30/1998 $11,238 $11,402
10/31/1998 $12,181 $12,327
11/30/1998 $12,904 $13,074
12/31/1998 $13,675 $13,828
1/31/1999 $14,139 $14,406
2/28/1999 $13,554 $13,958
3/31/1999 $13,940 $14,516
4/30/1999 $14,444 $15,078
5/31/1999 $14,161 $14,722
6/30/1999 $15,011 $15,572

$10,000 investment made 10/30/97

The graph at left shows the growth of a $10,000 investment over the life of the
fund. The S&P 500 is provided for comparison. VP Income & Growth's total return
includes operating expenses (such as transaction costs and management fees) that
reduce returns, while the return of the index does not. 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.

www.americancentury.com 5

VP Income & Growth--Q&A
- --------------------------------------------------------------------------------
/photo of Kurt Borgwardt and John Schniedwind/

Based on an interview with Kurt Borgwardt and John Schniedwind, portfolio
managers on the VP Income & Growth fund investment team.

HOW DID VP INCOME & GROWTH PERFORM FOR THE SIX MONTHS ENDED JUNE 30, 1999?

The fund grew nearly 10%, but trailed its benchmark, the S&P 500. The fund
returned 9.76% for the six months, compared with the S&P 500's 12.23% return.
(Please see the previous page for other fund performance comparisons.)

WHAT CAUSED THE FUND TO UNDERPERFORM THE S&P 500?

Simply put, the fund was underweight in many of the bellwether companies
that drove the S&P 500's first-quarter performance (see pages 3 and 4). A
significant factor behind that trend was concern that 1998's global economic
crises would translate into slowing economic growth, constricting the U.S.
economy and the profits of smaller, less-diversified companies.

Investors favored larger, more liquid names, sending price/earnings ratios
even higher, meaning investors were willing to continue paying increasingly
higher amounts for these companies' earnings.

Because VP Income & Growth tends to maintain a more value-oriented bias
than the S&P 500, the stocks in the portfolio were, on average, more reasonably
priced based on their underlying companies' earnings outlook, business
fundamentals, or intrinsic value. However, since narrow market leadership
prevailed, the attractive values that our models helped us find weren't as
highly rewarded as more-normal market conditions might have allowed.

WHAT HAPPENED TO THE FUND'S RETURNS IN THE SECOND QUARTER, WHEN MARKET SENTIMENT
SHIFTED DIRECTION?

The fund outperformed the S&P 500 for some of the same reasons it had
underperformed during the first quarter. Those reasons include the fund's
value-stock tilt, as well as its tendency to hold shares of companies with
slightly smaller market capitalizations. Unfortunately, the fund's
second-quarter outperformance of the S&P 500 fell a bit shy of overcoming the
first-quarter deficit.

WHAT WERE SOME OF THE FUND'S BETTER- PERFORMING STOCKS?

Shares of Hewlett-Packard (HP), the fund's eighth largest holding,
certainly fall into that category. HP is a leading global provider of computing
and imaging solutions and services for businesses and homes. The company is also
focused on capitalizing on Internet opportunities, as well as the proliferation
of electronic services.

Our models favored HP shares because of their attractive price relative to
the company's earnings, which surpassed market expectations for the third

[left margin]

"THE FUND GREW NEARLY 10%, BUT TRAILED ITS BENCHMARK, THE S&P 500."

PORTFOLIO AT A GLANCE
6/30/99 12/31/98
NO. OF COMPANIES 269 267
MEDIAN P/E RATIO 22.3 20.6
PORTFOLIO TURNOVER 21%(1) 55%(2)

(1) Six months ended 6/30/99.

(2) Year ended 12/31/98.

Investment terms are defined in the Glossary on pages 21-22.

6 1-800-345-6488

VP Income & Growth--Q&A
- --------------------------------------------------------------------------------
(Continued)

consecutive quarter. HP cited solid net earnings from the sale of personal
computers and strong profits from its printing and imaging endeavors as some of
the main catalysts for the positive results. Not surprisingly, the stock's price
reflected that upbeat performance--shares of HP rose almost 48% during the first
half of 1999.

THE INVESTMENT BANKING/BROKERAGE INDUSTRY WAS ONE OF THE BEST PERFORMERS IN THE
FIRST HALF OF 1999. DID YOU HAVE ANY STOCKS THERE THAT PERFORMED WELL?

Yes, we favored Morgan Stanley Dean Witter in particular. The company is a
global financial services firm and market leader in securities, asset
management, and credit services. The company reported a 42% increase in
per-share earnings during its quarter ended May 31, 1999.

Although the firm's securities and credit services revenue were impressive,
its investment banking performance was particularly noteworthy because of the
company's ability to capitalize on the trend toward consolidation in many
industries. We've been generally pleased by the results we've seen since adding
the stock to the fund's portfolio: the price rose roughly 45% since the
beginning of this year.

THE MEDIA INDUSTRY ALSO FARED WELL DURING THE SIX MONTHS. HOW DID YOUR
SELECTIONS IN THIS AREA FACTOR INTO VP INCOME & GROWTH'S RETURNS?

Though the fund certainly benefited from its holdings in this area, we were
unfortunately underweight in several of the industry's brighter stars. The main
reason the fund was underweight in such stocks was because their valuations were
far less attractive than shares of other companies in the media industry, such
as those of CBS.

MediaOne is a prime example. The company provides basic and premium cable
television services to over five million subscribers. MediaOne recently
introduced high speed Internet access, telephone services, and digital
television in some of its service areas. The company also has interests in some
of the fastest-growing wireless communications businesses outside of the U.S.

When MediaOne became an acquisition target of AT&T--a widely recognized
name in the communications services industry and the most widely held stock in
the United States--shares rose sharply.

LOOKING AHEAD, WHAT DO YOU THINK IS IN STORE FOR U.S. STOCKS FOR THE REST OF
1999?

The good news is that corporate profits remained impressive during the
second quarter, and with overseas economies rebounding, we believe prospects for
U.S. equities look fairly bright.

However, the good corporate and economic news has a dark side--it might
cause the Fed to raise short-term interest rates again.

Since higher borrowing costs tend to depress stocks by reducing earnings
estimates, continued increases in short-term interest rates by the Fed could
conceivably lead to lower overall stock prices. By the same token, though, if
growth moderates, the market's tone could become more upbeat and stocks could
continue to rally.

[right margin]

"THE FUND OUTPERFORMED THE S&P 500 FOR SOME OF THE SAME REASONS IT HAD
UNDERPERFORMED DURING THE FIRST QUARTER."

TOP TEN HOLDINGS
% OF FUND INVESTMENTS
AS OF AS OF
6/30/99 12/31/98
MICROSOFT CORP. 3.8% 3.8%
GENERAL ELECTRIC CO.
(U.S.) 2.6% 2.1%
CHASE MANHATTAN
CORP. 2.3% 1.5%
INTEL CORP. 2.2% 2.4%
WAL-MART STORES, INC. 2.1% 1.6%
INTERNATIONAL BUSINESS
MACHINES CORP. 1.8% 1.3%
AT&T CORP. 1.7% 2.6%
HEWLETT-PACKARD CO. 1.7% 0.9%
EXXON CORP. 1.7% 0.8%
LUCENT TECHNOLOGIES
INC. 1.6% 1.3%

www.americancentury.com 7

VP Income & Growth--Q&A
- --------------------------------------------------------------------------------
(Continued)

GIVEN THAT OUTLOOK, WHAT ARE YOUR PLANS FOR THE PORTFOLIO FOR THE NEXT SIX
MONTHS?

Remaining fully invested in stocks will continue to be a priority. This
strategy tends to enhance returns when the market rallies. However, if the
market sells off, being fully invested could also dampen returns. To mitigate
such a possibility, we will continue looking to add shares of companies with
improving earnings forecasts that appear to be undervalued. This strategy will
hopefully provide investors with attractive returns and an acceptable level of
risk.

We've also refined our investment approach recently. We've found that our
quantitative process is more effective at picking individual stocks than
industries. So rather than significantly overweighting and underweighting entire
sectors compared with the S&P 500, we have been bringing our industry positions
more in line with the index.

For example, we have recently overweighted financial services stocks
compared with the S&P 500. Going forward, the percentage of financial services
companies in the fund will likely more closely track the percentage in the
index. If we decide to overweight one company, we would be likely to underweight
other financial services holdings to keep the overall sector weighting closer to
the index.

[left margin]

"RATHER THAN SIGNIFICANTLY OVERWEIGHTING AND UNDERWEIGHTING ENTIRE SECTORS
COMPARED WITH THE S&P 500, WE HAVE BEEN BRINGING OUR INDUSTRY POSITIONS MORE IN
LINE WITH THE INDEX."

TOP FIVE INDUSTRIES
% OF FUND INVESTMENTS
AS OF AS OF
6/30/99 12/31/98
TELEPHONE
COMMUNICATIONS 7.8% 8.4%
BANKING 7.7% 7.6%
PHARMACEUTICALS 7.4% 8.8%
COMPUTER SOFTWARE
& SERVICES 6.8% 8.0%
COMPUTER SYSTEMS 5.5% 4.5%

8 1-800-345-6488

VP Income & Growth--Schedule of Investments
- --------------------------------------------------------------------------------

NOTE: For securities denominated in foreign currencies, the market value is
translated into U.S. dollars based on exchange rates as of the last day of
reporting period.

JUNE 30, 1999 (UNAUDITED)

Shares Value
- -------------------------------------------------------------------------------
COMMON STOCKS--94.8%
AEROSPACE & DEFENSE--2.1%
12,100 AlliedSignal Inc. $ 762,300
11,200 Boeing Co. 494,900
11,900 Cordant Technologies Inc. 537,731
13,100 EG&G, Inc. 466,688
4,300 General Dynamics Corp. 294,550
52,200 Goodrich (B.F.) Company (The) 2,218,500
12,300 United Technologies Corp. 881,756
--------------
5,656,425
--------------
AIRLINES--0.1%
2,500 AMR Corp.(1) 170,625
2,500 Delta Air Lines Inc. 144,062
1,000 US Airways Group Inc.(1) 43,562
--------------
358,249
--------------
AUTOMOBILES & AUTO PARTS--1.8%
2,800 Fleetwood Enterprises, Inc. 74,025
61,600 Ford Motor Co. 3,476,550
18,600 General Motors Corp. 1,227,600
--------------
4,778,175
--------------
BANKING--7.7%
66,800 Banc One Corp. 3,978,775
51,600 BankAmerica Corp. 3,782,925
71,200 Chase Manhattan Corp. 6,167,700
48,150 Citigroup Inc. 2,287,125
5,200 City National Corp. 194,675
3,000 Cullen/Frost Bankers, Inc. 82,688
36,000 First Union Corp. 1,692,000
22,000 Fleet Financial Group, Inc. 976,250
18,700 GreenPoint Financial Corp. 613,594
2,000 Pacific Century Financial Corp. 43,125
6,600 UnionBanCal Corp. 238,425
13,100 Wells Fargo & Co. 560,025
--------------
20,617,307
--------------
BIOTECHNOLOGY--0.9%
31,700 Amgen Inc.(1) 1,928,747
6,200 Biogen, Inc.(1) 398,931
--------------
2,327,678
--------------
BROADCASTING & MEDIA--1.7%
71,200 CBS Corp.(1) 3,092,750
26,400 Comcast Corp. Cl A 1,014,750

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

1,500 MediaOne Group Inc.(1) $ 111,562
5,900 Time Warner Inc. 433,650
--------------
4,652,712
--------------
BUILDING & HOME IMPROVEMENTS--0.1%
7,000 York International Corporation 299,688
--------------
BUSINESS SERVICES & SUPPLIES--0.9%
3,000 ACNielsen Corp.(1) 90,750
2,600 Century Business Services, Inc.(1) 37,538
8,800 Kelly Services, Inc. Cl A 282,150
5,000 Labor Ready, Inc.(1) 162,500
23,600 Ogden Corp. 635,725
7,300 Omnicom Group Inc. 584,000
5,800 Snyder Communications, Inc.(1) 189,950
13,500 True North Communications Inc. 405,000
--------------
2,387,613
--------------
CHEMICALS & RESINS--1.5%
1,800 Church & Dwight Co., Inc. 78,300
12,800 Dow Chemical Co. 1,624,000
24,200 du Pont (E.I.) de Nemours & Co. 1,653,162
1,400 Eastman Chemical Co. 72,450
700 Ecolab Inc. 30,538
2,000 Grace (W.R.) & Co. (Del.)(1) 36,750
2,300 Hercules Inc. 90,419
5,000 International Flavors & Fragrances
Inc. 221,875
1,500 Nalco Chemical Co. 77,812
1,510 Rohm and Haas Co. 64,741
200 Union Carbide Corp. 9,750
--------------
3,959,797
--------------
COMMUNICATIONS EQUIPMENT--3.7%
15,650 Comverse Technology, Inc.(1) 1,180,597
7,100 Corning Inc. 497,888
64,400 Lucent Technologies Inc. 4,342,975
8,600 Motorola, Inc. 814,850
14,700 Nortel Networks Corp. 1,276,144
5,100 QUALCOMM Inc.(1) 732,009
14,700 Tellabs, Inc.(1) 993,628
--------------
9,838,091
--------------
COMPUTER PERIPHERALS--2.0%
18,400 Adaptec, Inc.(1) 649,175
56,800 Cisco Systems Inc.(1) 3,658,275
16,500 EMC Corp. (Mass.)(1) 907,500
--------------
5,214,950
--------------

See Notes to Financial Statements

www.americancentury.com 9

VP Income & Growth--Schedule of Investments
- --------------------------------------------------------------------------------
(Continued)
JUNE 30, 1999 (UNAUDITED)

Shares Value
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES--6.8%
26,700 America Online Inc.(1) $ 2,950,350
4,900 American Management System,
Inc.(1) 156,953
4,500 BMC Software, Inc.(1) 242,859
3,900 Computer Associates International,
Inc. 214,500
10,900 Compuware Corp.(1) 346,416
4,600 Concord EFS, Inc.(1) 194,781
4,500 Electronic Data Systems Corp. 254,531
11,000 Keane, Inc.(1) 248,875
113,100 Microsoft Corp.(1) 10,193,139
11,500 NCR Corp.(1) 561,344
23,400 Oracle Corp.(1) 868,725
1,900 Shared Medical Systems Corp. 123,975
3,300 Siebel Systems, Inc.(1) 218,728
19,600 Sterling Software, Inc.(1) 523,075
28,500 Unisys Corp.(1) 1,109,719
--------------
18,207,970
--------------
COMPUTER SYSTEMS--5.5%
52,800 Apple Computer, Inc.(1) 2,448,600
21,383 Compaq Computer Corp. 506,510
52,100 Dell Computer Corp.(1) 1,926,072
5,100 Gateway Inc.(1) 300,900
44,500 Hewlett-Packard Co. 4,472,250
37,700 International Business Machines
Corp. 4,872,725
3,100 Sun Microsystems, Inc.(1) 213,609
--------------
14,740,666
--------------
CONSTRUCTION & PROPERTY
DEVELOPMENT--0.6%
12,200 Centex Corp. 458,262
6,600 D.R. Horton, Inc. 109,725
11,800 Foster Wheeler Corp. 166,675
10,200 Kaufman & Broad Home Corp. 253,725
6,800 Lafarge Corp. 240,975
12,600 Pulte Corp. 290,588
--------------
1,519,950
--------------
CONSUMER PRODUCTS--1.6%
1,100 Alberto-Culver Company Cl B 29,288
16,400 Avon Products, Inc. 910,200
4,000 Clorox Co. (The) 427,250
7,000 National Service Industries, Inc. 252,000
20,400 Procter & Gamble Co. (The) 1,820,700
10,900 Whirlpool Corp. 806,600
--------------
4,246,038
--------------
DIVERSIFIED COMPANIES--4.1%
62,100 General Electric Co. (U.S.) 7,017,300
9,100 Minnesota Mining &
Manufacturing Co. 791,131
22,400 Tyco International Ltd. 2,122,400
14,767 Unilever N.V. New York Shares 1,029,998

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

2,800 Viad Corp $ 86,625
--------------
11,047,454
--------------
ELECTRICAL & ELECTRONIC
COMPONENTS--2.9%
97,000 Intel Corp. 5,768,469
8,000 Micron Technology, Inc.(1) 322,500
16,800 Rockwell International Corp. 1,020,600
4,000 Texas Instruments Inc. 580,000
--------------
7,691,569
--------------
ENERGY (PRODUCTION & MARKETING)--5.2%
300 Ashland Inc. 12,038
7,900 Atlantic Richfield Co. 660,144
2,600 Chevron Corp. 247,488
57,300 Exxon Corp. 4,419,262
30,500 Kerr-McGee Corp. 1,530,719
15,300 Keyspan Energy Corp. 403,538
23,400 Mobil Corp. 2,316,600
7,000 Occidental Petroleum Corp. 147,875
22,400 Royal Dutch Petroleum Co.
New York Shares 1,349,600
9,800 Sunoco, Inc. 295,838
32,000 Texaco Inc. 2,000,000
18,400 Ultramar Diamond Shamrock
Corp. 401,350
10,400 Union Pacific Resources 169,650
--------------
13,954,102
--------------
ENERGY (SERVICES)--0.5%
16,000 Diamond Offshore Drilling, Inc. 454,000
5,000 Reliant Energy, Inc. 138,125
22,800 Tidewater Inc. 695,400
--------------
1,287,525
--------------
ENVIRONMENTAL SERVICES--0.1%
7,000 Browning-Ferris Industries, Inc. 301,000
--------------
FINANCIAL SERVICES--3.7%
3,600 Bear Stearns Companies Inc. 168,300
8,500 Countrywide Credit Industries, Inc. 363,375
40,800 Fannie Mae 2,789,700
22,200 Federal Home Loan Mortgage
Corporation 1,287,600
12,100 Lehman Brothers Holdings Inc. 753,225
13,700 Merrill Lynch & Co., Inc. 1,095,144
33,300 Morgan Stanley Dean Witter & Co. 3,413,250
--------------
9,870,594
--------------
FOOD & BEVERAGE--3.5%
11,800 Anheuser-Busch Companies, Inc. 837,062
11,700 Bestfoods 579,150
5,500 Coca-Cola Company (The) 343,750
14,000 ConAgra, Inc. 372,750
13,800 Earthgrains Company 356,212
21,400 General Mills, Inc. 1,720,025

See Notes to Financial Statements

10 1-800-345-6488

VP Income & Growth--Schedule of Investments
- --------------------------------------------------------------------------------
(Continued)
JUNE 30, 1999 (UNAUDITED)

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

25,700 Heinz (H.J.) Co. $ 1,288,212
4,600 Hormel Foods Corp. 185,150
6,300 IBP, Inc. 149,625
8,500 Lance, Inc. 132,281
50,600 Nabisco Group Holdings Corp. 989,862
4,900 PepsiCo, Inc. 189,569
26,700 Quaker Oats Co. (The) 1,772,212
9,300 Sara Lee Corp. 210,994
8,100 SYSCO Corp. 241,481
--------------
9,368,335
--------------
HEALTHCARE--0.8%
9,600 Baxter International, Inc. 582,000
4,800 Cardinal Health, Inc. 307,800
23,100 Mallinckrodt Inc. 840,262
5,100 PacifiCare Health Systems, Inc.(1) 367,041
1,700 RehabCare Group, Inc.(1) 31,344
2,000 Trigon Healthcare, Inc.(1) 72,750
--------------
2,201,197
--------------
INDUSTRIAL EQUIPMENT & MACHINERY--0.5%
5,500 Caterpillar Inc. 330,000
17,100 Ingersoll-Rand Co. 1,105,088
--------------
1,435,088
--------------
INSURANCE--3.9%
47,200 Allstate Corp. 1,693,300
10,600 Conseco Inc. 322,638
11,800 Fidelity National Financial, Inc. 247,800
22,600 First American Financial Corp.
(The) 403,975
7,900 Gallagher (Arthur J.) & Co. 391,050
6,100 LandAmerica Financial Group, Inc. 175,375
63,300 Lincoln National Corp. 3,311,381
22,000 Loews Corp. 1,740,750
28,700 Marsh & McLennan Companies, Inc. 2,166,850
1,700 Travelers Property Casualty
Corp. Cl A 66,512
--------------
10,519,631
--------------
LEISURE--1.4%
2,000 Anchor Gaming(1) 96,188
25,800 Carnival Corp. Cl A 1,251,300
4,800 Disney (Walt) Co. 147,900
18,400 Eastman Kodak Co. 1,246,600
23,200 Viacom, Inc. Cl B(1) 1,020,800
--------------
3,762,788
--------------
MACHINERY & EQUIPMENT--0.5%
3,000 Briggs & Stratton Corp. 173,250
1,600 Cummins Engine Company, Inc. 91,400
3,900 Pentair, Inc. 178,425
22,400 Premark International, Inc. 840,000
1,800 SPX Corp.(1) 150,300
--------------
1,433,375
--------------

Shares Value
- -------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES--0.9%
4,500 Andrx Corp.(1) $ 346,922
14,900 Hillenbrand Industries, Inc. 644,425
3,100 St. Jude Medical, Inc.(1) 110,438
14,900 VISX, Inc.(1) 1,181,291
--------------
2,283,076
--------------
METALS & MINING--0.2%
6,500 Alcoa Inc. 402,188
200 ASARCO Inc. 3,762
--------------
405,950
--------------
OFFICE--0.1%
14,700 CarrAmerica Realty Corp. 367,500
--------------
PACKAGING & CONTAINERS(2)
2,600 Crown Cork & Seal Co., Inc. 74,100
--------------
PAPER & FOREST PRODUCTS--0.6%
3,300 Fort James Corp. 124,988
9,000 International Paper Co. 454,500
11,100 Kimberly-Clark Corp. 632,700
4,200 Weyerhaeuser Co. 288,750
--------------
1,500,938
--------------
PHARMACEUTICALS--7.4%
19,200 Abbott Laboratories 873,600
1,700 American Home Products Corp. 97,750
27,800 Bergen Brunswig Corp. Cl A 479,550
45,600 Bristol-Myers Squibb Co. 3,211,950
4,200 Herbalife International, Inc. Cl A 45,806
26,700 Johnson & Johnson 2,616,600
26,400 Lilly (Eli) & Co. 1,890,900
5,200 McKesson HBOC, Inc. 167,050
2,700 Medicis Pharmaceutical Corp.
Cl A(1) 68,512
34,300 Merck & Co., Inc. 2,538,200
4,200 Nature's Sunshine Products, Inc. 45,412
14,900 Pfizer, Inc. 1,635,275
22,600 Pharmacia & Upjohn Inc. 1,283,962
51,500 Schering-Plough Corp. 2,729,500
30,600 Warner-Lambert Co. 2,122,875
--------------
19,806,942
--------------
PRINTING & PUBLISHING--0.8%
56,800 Deluxe Corp. 2,211,650
--------------
RAILROAD--0.1%
4,400 Union Pacific Corp. 256,575
--------------
REAL ESTATE--0.2%
52,100 Host Marriott Corp. 618,688
--------------
RESTAURANTS--0.4%
3,600 Brinker International, Inc.(1) 97,875
3,300 McDonald's Corp. 136,331
3,300 Tricon Global Restaurants Inc.(1) 178,612
25,300 Wendy's International, Inc. 716,306
--------------
1,129,124
--------------

See Notes to Financial Statements

www.americancentury.com 11

VP Income & Growth--Schedule of Investments
- --------------------------------------------------------------------------------
(Continued)
JUNE 30, 1999 (UNAUDITED)

Shares Value
- -------------------------------------------------------------------------------
RETAIL (APPAREL)--0.5%
1,300 Cato Corp. Cl A $ 15,112
6,195 Intimate Brands, Inc. 293,488
5,500 Ross Stores, Inc. 276,547
23,700 TJX Companies, Inc. (The) 789,506
--------------
1,374,653
--------------
RETAIL (FOOD & DRUG)--0.8%
11,088 Albertson's, Inc. 571,725
7,600 Kroger Co. (The)(1) 212,325
3,500 Rite Aid Corp. 86,188
10,100 Safeway Inc.(1) 499,950
26,800 Supervalu Inc. 688,425
3,700 Universal Corp. 105,219
--------------
2,163,832
--------------
RETAIL (GENERAL MERCHANDISE)--3.1%
900 Enesco Group, Inc. 20,812
30,200 Penney (J.C.) Company, Inc. 1,466,588
27,100 Sears, Roebuck & Co. 1,207,644
114,900 Wal-Mart Stores, Inc. 5,543,925
--------------
8,238,969
--------------
RETAIL (INTERNET)--0.1%
2,100 Amazon.com, Inc.(1) 262,697
--------------
RETAIL (SPECIALTY)--1.7%
20,000 Best Buy Co., Inc.(1) 1,350,000
8,800 Borders Group, Inc.(1) 139,150
1,600 Circuit City Stores-Circuit
City Group 148,800
11,400 Hollywood Entertainment Corp.(1) 222,656
27,300 Home Depot, Inc. 1,759,144
3,800 Lowe's Companies, Inc. 215,412
2,500 Starbucks Corp.(1) 93,672
12,000 Zale Corp.(1) 480,000
--------------
4,408,834
--------------
RUBBER & PLASTICS--0.3%
34,100 Tupperware Corp. 869,550
--------------
STEEL--0.1%
600 Bethlehem Steel Corporation(1) 4,612
1,400 Nucor Corp. 66,412
1,300 USX-U.S. Steel Group 35,100
--------------
106,124
--------------
TELEPHONE COMMUNICATIONS--7.8%
83,100 AT&T Corp. 4,638,019
2,800 ALLTEL Corp. 200,200
20,300 Ameritech Corp. 1,492,050
23,500 Bell Atlantic Corp. 1,536,312
76,900 BellSouth Corp. 3,604,688
24,500 GTE Corp. 1,855,875
23,900 MCI WorldCom, Inc.(1) 2,056,147

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

49,200 SBC Communications Inc. $ 2,853,600
7,200 Sprint Corp. 380,250
38,200 U S WEST, Inc. 2,244,250
--------------
20,861,391
--------------
TEXTILES & APPAREL--0.6%
13,400 Dexter Corp. (The) 546,888
4,900 Tommy Hilfiger Corp.(1) 360,150
14,700 VF Corp. 628,425
--------------
1,535,463
--------------
TOBACCO--1.1%
17,900 Fortune Brands, Inc. 740,612
42,600 Philip Morris Companies Inc. 1,711,988
12,100 R.J. Reynolds Tobacco
Holdings, Inc.(1) 381,150
--------------
2,833,750
--------------
TRANSPORTATION--0.2%
8,900 Hertz Corp. Cl A 551,800
3,900 Laidlaw Inc. 28,762
--------------
580,562
--------------
UTILITIES--3.2%
8,100 Ameren Corp. 310,838
40,500 Central & South West Corp. 946,688
25,013 Conectiv, Inc. 611,255
2,125 Conectiv, Inc. Cl A 89,250
14,600 Constellation Energy Group 432,525
17,800 Dominion Resources, Inc. (Va.) 770,962
20,100 Duke Energy Corp. 1,092,938
2,700 GPU Inc. 113,906
1,500 Hawaiian Electric Industries, Inc. 53,250
15,800 LG&E Energy Corp. 331,800
13,200 MCN Energy Group Inc. 273,900
3,250 MDU Resources Group, Inc. 74,141
24,300 Minnesota Power & Light Co. 482,962
45,600 Sempra Energy 1,031,700
11,100 Southern Co. 294,150
9,500 Texas Utilities Co. 391,875
53,150 Utilicorp United Inc. 1,292,209
--------------
8,594,349
--------------
WIRELESS COMMUNICATIONS--0.5%
20,900 Sprint PCS(1) 1,193,912
--------------
TOTAL COMMON STOCKS 253,356,596
--------------
(Cost $224,204,355)

PREFERRED STOCKS--0.1%
UTILITIES
12,100 Avista Corp. 205,700
--------------
(Cost $214,913)

See Notes to Financial Statements

12 1-800-345-6488

VP Income & Growth--Schedule of Investments
- --------------------------------------------------------------------------------
(Continued)
JUNE 30, 1999 (UNAUDITED)

Principal Amount Value
- -------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS--5.1%
Repurchase Agreement, Morgan Stanley Group,
Inc., (U.S. Treasury obligations), in a joint
trading account at 4.72%, dated 6/30/99,
due 7/1/99 (Delivery value $12,901,691) $ 12,900,000
Repurchase Agreement, State Street Boston
Corp., (U.S. Treasury obligations), in a joint
trading account at 4.70%, dated 6/30/99,
due 7/1/99 (Delivery value $800,104) 800,000
--------------
TOTAL TEMPORARY CASH INVESTMENTS 13,700,000
--------------
(Cost $13,700,000)

TOTAL INVESTMENT SECURITIES--100.0% $267,262,296
==============
(Cost $238,119,268)

FUTURES CONTRACTS
Underlying
Expiration Face Amount Unrealized
Purchased Date at Value Gain
- -----------------------------------------------------------------------------

25 S&P 500 September
Futures 1999 $8,635,625 $321,414
===========================================

NOTES TO SCHEDULE OF INVESTMENTS

(1) Non-income producing.

(2) Industry is less than 0.05% of total investment securities.

See Notes to Financial Statements

www.americancentury.com 13

Statement of Assets and Liabilities
- --------------------------------------------------------------------------------

JUNE 30, 1999 (UNAUDITED)

ASSETS
Investment securities, at value
(identified cost of $238,119,268)
(Note 3) ............................................... $ 267,262,296
Cash ..................................................... 614,847
Receivable for investments sold .......................... 4,747,254
Receivable for variation margin
on futures contracts ................................... 297,183
Dividends and interest receivable ........................ 268,690
-------------
273,190,270
-------------

LIABILITIES
Payable for investments purchased ........................ 8,494,571
Accrued management fees (Note 2) ......................... 139,369
Payable for directors' fees and expenses ................. 401
-------------
8,634,341
-------------
Net Assets ............................................... $ 264,555,929
=============

CAPITAL SHARES, $0.01 PAR VALUE
Authorized ............................................... 200,000,000
=============
Outstanding .............................................. 35,577,568
=============
Net Asset Value Per Share ................................ $ 7.44
=============

NET ASSETS CONSIST OF:
Capital (par value and paid-in surplus) .................. $ 236,290,257
Undistributed net investment income ...................... 1,054,521
Net realized loss on investments ......................... (2,253,291)
Net unrealized appreciation
on investments (Note 3) ................................ 29,464,442
-------------
$ 264,555,929
=============

See Notes to Financial Statements

14 1-800-345-6488

Statement of Operations
- --------------------------------------------------------------------------------

FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)

INVESTMENT INCOME
Income:
Dividends ................................................ $ 1,446,916
Interest ................................................. 229,603
------------
1,676,519
------------
Expenses (Note 2):
Management fees .......................................... 612,116
Directors' fees and expenses ............................. 1,068
------------
613,184
------------
Net investment income .................................... 1,063,335
------------

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 3)
Net realized loss on investments ......................... (852,885)
Change in net unrealized
appreciation on investments ............................ 18,263,676
------------

Net realized and unrealized
gain on investments .................................... 17,410,791
------------

Net Increase in Net Assets
Resulting from Operations .............................. $ 18,474,126
============

See Notes to Financial Statements

www.americancentury.com 15

Statements of Changes in Net Assets
- --------------------------------------------------------------------------------

SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED) AND YEAR ENDED DECEMBER 31, 1998

Increase in Net Assets 1999 1998

OPERATIONS
Net investment income ...................... $ 1,063,335 $ 532,047
Net realized loss on investments ........... (852,885) (1,398,202)
Change in net unrealized
appreciation on investments .............. 18,263,676 11,135,350
------------- -------------
Net increase in net assets
resulting from operations ................ 18,474,126 10,269,195
------------- -------------

DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ................. (33,729) (510,742)
From net realized gains on
investment transactions .................. -- (11,379)
------------- -------------
Decrease in net assets
from distributions ....................... (33,729) (522,121)
------------- -------------

CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold .................. 154,684,536 128,959,725
Proceeds from reinvestment
of distributions ......................... 33,729 522,121
Payments for shares redeemed ............... (18,228,605) (30,833,174)
------------- -------------
Net increase in net assets from
capital share transactions ............... 136,489,660 98,648,672
------------- -------------
Net increase in net assets ................. 154,930,057 108,395,746

NET ASSETS
Beginning of period ........................ 109,625,872 1,230,126
------------- -------------
End of period .............................. $ 264,555,929 $ 109,625,872
============= =============
Undistributed net investment income ........ $ 1,054,521 $ 24,915
============= =============

TRANSACTIONS IN SHARES OF THE FUND
Sold ....................................... 22,045,008 20,962,716
Issued in reinvestment of distributions .... 4,853 80,307
Redeemed ................................... (2,630,750) (5,112,938)
------------- -------------
Net increase ............................... 19,419,111 15,930,085
============= =============

See Notes to Financial Statements

16 1-800-345-6488

Notes to Financial Statements
- --------------------------------------------------------------------------------

JUNE 30, 1999 (UNAUDITED)

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION -- American Century Variable Portfolios, Inc. (the corporation)
is registered under the Investment Company Act of 1940 as an open-end
diversified management investment company. VP Income & Growth Fund, (the fund)
is one of the six funds issued by the corporation. The fund's investment
objective is dividend growth, current income and capital appreciation through
investment in common stocks. The following significant accounting policies are
in accordance with generally accepted accounting principles; these principles
may require the use of estimates by fund management.

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 may include 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.

At December 31, 1998, the fund had accumulated net realized capital loss
carryovers for federal income purposes of $642,189 (expiring in 2006) which may
be used to offset future taxable gains.

ADDITIONAL INFORMATION -- Funds Distributor, Inc. (FDI) is the corporation's
distributor. Certain officers of FDI are also officers of the corporation.

www.americancentury.com 17

Notes to Financial Statements
- --------------------------------------------------------------------------------
(Continued)

JUNE 30, 1999 (UNAUDITED)

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

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

Purchases and sales of investment securities, excluding short-term
investments, totaled $168,167,953 and $36,498,022, respectively.

As of June 30, 1999, accumulated net unrealized appreciation was $28,848,871
based on the aggregate cost of investments for federal income tax purposes of
$238,413,425, which consisted of unrealized appreciation of $32,805,838 and
unrealized depreciation of $3,956,967.

- --------------------------------------------------------------------------------
4. BANK LOANS

- --------------------------------------------------------------------------------
5. FUND EVENTS

The following name change became effective March 1, 1999:

==================================================================
NEW NAME FORMER NAME
==================================================================

FUND: VP Income & Growth Fund American Century VP Income & Growth

18 1-800-345-6488

VP Income & Growth--Financial Highlights
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED DECEMBER 31 (EXCEPT AS NOTED)

1999(1) 1998 1997(2)
PER-SHARE DATA
<S> <C> <C> <C>
Net Asset Value, Beginning of Period .. $ 6.78 $ 5.39 $ 5.00
----------- ----------- -----------
Income From Investment Operations
Net Investment Income ............... 0.03 0.03 0.02
Net Realized and Unrealized Gain
on Investment Transactions .......... 0.63 1.41 0.37
----------- ----------- -----------
Total From Investment Operations .... 0.66 1.44 0.39
----------- ----------- -----------
Distributions
From Net Investment Income .......... --(3) (0.04) --
From Net Realized Gains on
Investment Transactions ............. -- (0.01) --
----------- ----------- -----------
Total Distributions ................. --(3) (0.05) --
----------- ----------- -----------
Net Asset Value, End of Period ........ $ 7.44 $ 6.78 $ 5.39
=========== =========== ===========
Total Return(4) ..................... 9.76% 26.87% 7.80%

RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets ............... 0.70%(5) 0.70% 0.70%(5)
Ratio of Net Investment Income
to Average Net Assets ............... 1.22%(5) 1.43% 1.94%(5)
Portfolio Turnover Rate ............... 21% 55% 10%
Net Assets, End of Period
(in millions) ....................... $ 264,556 $ 109,626 $ 1,230
</TABLE>

(1) Six months ended June 30, 1999 (unaudited).

(2) October 30, 1997 (inception) through December 31, 1997.

(3) Per share amount is less than $0.005.

(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.

See Notes to Financial Statements

www.americancentury.com 19

Background Information
- --------------------------------------------------------------------------------

INVESTMENT TEAM LEADERS
Portfolio Managers
KURT BORGWARDT
JOHN SCHNIEDWIND

INVESTMENT PHILOSOPHY AND POLICIES

AMERICAN CENTURY VP INCOME & GROWTH seeks current income and capital
appreciation by investing in a diversified portfolio of common stocks. Its goal
is to achieve a total return that exceeds the total return of the S&P 500. The
fund's management team also targets a dividend yield that is higher than the
yield of the S&P 500.

COMPARATIVE INDICES

The following indices are used in the report for fund performance
comparisons. They are not investment products available for purchase.

The S&P 500 is composed of 500 large-capitalization stocks traded on
domestic exchanges. It is considered a broad measure of U.S. stock performance.

The S&P 500/BARRA VALUE INDEX and the S&P 500/BARRA GROWTH INDEX are
capitalization-weighted indices made up of the stocks from the S&P 500. The
value index contains firms with lower price-to-book ratios; conversely, the
growth index has firms with higher price-to-book ratios.

The S&P MIDCAP 400 is composed of 400 mid-capitalization stocks traded on
domestic exchanges. It is considered a broad measure of mid-sized stock
performance.

The S&P SMALLCAP 600 is composed of 600 small-capitalization stocks traded
on domestic exchanges. It is considered a broad measure of small-company stock
performance.

20 1-800-345-6488

Glossary
- --------------------------------------------------------------------------------

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 fiscal year-by-year
results. For fiscal year-by-year returns, please refer to the "Financial
Highlights" on page 19.

PORTFOLIO STATISTICS

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

* 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.)

* PORTFOLIO TURNOVER -- the percentage of the 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

* 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.

* 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 -- 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,
healthcare, and consumer staple companies.

* LARGE-CAPITALIZATION ("LARGE-CAP") STOCKS -- generally considered to be stocks
of larger-sized companies that make up the Dow Jones Industrial Average and the
S&P 500.

* MEDIUM-CAPITALIZATION ("MID-CAP") STOCKS --generally considered to be stocks
of mid-sized companies that make up the S&P MidCap 400.

* SMALL-CAPITALIZATION ("SMALL-CAP") STOCKS -- generally considered to be stocks
of smaller-sized companies that make up the S&P SmallCap 600.

* 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.

EQUITY TERMS

* DIVIDEND YIELD --a percentage return calculated by dividing a company's annual
cash dividend by the current market value of the company's stock.

* 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.)

www.americancentury.com 21

Glossary
- --------------------------------------------------------------------------------
(Continued)

FUND CLASSIFICATIONS

INVESTMENT OBJECTIVE

* CAPITAL PRESERVATION -- offers taxable and tax-free money market funds for
relative stability of principal and liquidity.

* INCOME -- offers funds that can provide current income and competitive yields,
as well as a strong and stable foundation and generally lower volatility levels
than stock funds.

* GROWTH & INCOME -- offers funds that emphasize both growth and income,
provided by either dividend-paying equities or a combination of equity and
fixed-income securities.

* GROWTH -- offers funds with a focus on capital appreciation and long-term
growth, generally providing high return potential with corresponding high price
fluctuation risk.

RISK

The classification of funds by risk category is based on quantitative
historical measures as well as qualitative prospective measures. It is not
intended to be a precise indicator of future risk or return levels. The degree
of risk within each category can vary significantly, and some fund returns have
historically been higher than more aggressive funds or lower than more
conservative funds. Please be aware that the fund's category may change over
time. Therefore, it is important that you read a fund's prospectus or fund
profile carefully before investing to ensure its objectives, policies, and risk
potential are consistent with your needs.

* CONSERVATIVE -- these funds generally provide lower return potential with
either low or minimal price fluctuation risk.

* MODERATE -- these funds generally provide moderate return potential with
moderate price fluctuation risk.

* AGGRESSIVE -- these funds generally provide high return potential with
corresponding high price fluctuation risk.

22 1-800-345-6488

Notes
- --------------------------------------------------------------------------------

www.americancentury.com 23

Notes
- --------------------------------------------------------------------------------

24 1-800-345-6488

[inside back cover]

RISK LEVEL - CONSERVATIVE

TAXABLE MONEY MARKETS TAX-FREE MONEY MARKETS

===============================================================================
INVESTMENT OBJECTIVE - INCOME
===============================================================================

RISK LEVEL - AGGRESSIVE

TAXABLE BONDS TAX-FREE BONDS

Target 2025* CA High-Yield Municipal
Target 2020* High-Yield Municipal
Target 2015*
Target 2010*
High-Yield
International Bond

RISK LEVEL - MODERATE

TAXABLE BONDS TAX-FREE BONDS

Long-Term Treasury CA Long-Term Tax-Free
Target 2005* Long-Term Tax-Free
Bond CA Insured Tax-Free
Premium Bond

RISK LEVEL - CONSERVATIVE

TAXABLE BONDS TAX-FREE BONDS

RISK LEVEL - AGGRESSIVE

DOMESTIC EQUITY

Small Cap Quantitative
Small Cap Value

RISK LEVEL - MODERATE

ASSET ALLOCATION/BALANCED DOMESTIC EQUITY SPECIALTY

===============================================================================
INVESTMENT OBJECTIVE - GROWTH
===============================================================================

RISK LEVEL - AGGRESSIVE

DOMESTIC EQUITY SPECIALTY INTERNATIONAL

New Opportunities Global Gold Emerging Markets
Giftrust(reg.tm) International Discovery
Vista International Growth
Heritage Global Growth
Growth
Ultra(reg.tm)
Select

RISK LEVEL - MODERATE

SPECIALTY

Global Natural Resources

The investment objective may be based on the fund's objective as stated in its
prospectus or fund profile, or the fund's categorization by independent rating
organizations based on its management style.

The classification of funds by risk category is based on quantitative historical
measures as well as qualitative prospective measures. It is not intended to be a
precise indicator of future risk or return levels. The degree of risk within
each category can vary significantly, and some fund returns have historically
been higher than more aggressive funds or lower than more conservative funds.
Please be aware that a fund's category may change over time. Therefore, it is
important that you read a fund's prospectus or fund profile carefully before
investing to ensure its objectives, policies and risk potential are consistent
with your needs.

For a definition of fund categories, see the Glossary.

- --------------------------------------------------------------------------------
[back cover]

[american century logo(reg.sm)]
American
Century

P.O. BOX 419385
KANSAS CITY, MISSOURI 64141-6385

WWW.AMERICANCENTURY.COM

INVESTOR RELATIONS
1-800-345-6488

AUTOMATED INFORMATION LINE
1-800-345-8765

FAX: 816-340-4360

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-345-1833

AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.

INVESTMENT MANAGER
AMERICAN CENTURY INVESTMENT MANAGEMENT, INC.
KANSAS CITY, MISSOURI

9908 Funds Distributor, Inc.
SH-SAN-17129 (c)1999 American Century Services Corporation